Latest / Pod Save America / Elon Musk's Nerd Coup
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- 1:38Speaker 2: Welcome to Pod Save America. I'm Jon Favreau.
- 1:40Speaker 3: I'm Jon Lovett.
- 1:41Speaker 5: I'm Tommy Vitor.
- 1:42Speaker 2: On today's show.
- 1:43Speaker 1: We got Donald Trump and Elon Musk seizing control of
- 1:46Speaker 1: the federal government's money spigot, accessing all of our private
- 1:49Speaker 1: information like social security numbers, purging federal law enforcement of
- 1:53Speaker 1: nonpartisan FBI agents and prosecutors who aren't loyal to Trump,
- 1:57Speaker 1: and shutting down multi-billion dollar agencies that they're not legally
- 2:00Speaker 1: authorized to eliminate, starting with USAID. We'll hear from a
- 2:04Speaker 1: USAID vet about what is actually happening and what it means.
- 2:08Speaker 1: We'll also talk about the Democrats. who seem like they're
- 2:11Speaker 1: trying to get off the mat. Over the weekend, the
- 2:14Speaker 1: party elected Ken Martin as its new chair, and Democrats
- 2:16Speaker 1: in Congress are starting to use the limited power they
- 2:19Speaker 1: have to fight back. And later, Lovett talks tariffs with
- 2:22Speaker 1: our old friend Brian Deese, who is a top economic
- 2:25Speaker 1: advisor to Presidents Obama and Biden. But first, America's dumbest
- 2:29Speaker 1: trade war, with two of its closest allies and biggest
- 2:33Speaker 1: trading partners, seems to have ended before it even began.
- 2:37Speaker 1: We started today. Ready to talk about a trade war.
- 2:41Speaker 1: And then just before we started recording, first Mexico goes down,
- 2:44Speaker 1: then Canada goes down.
- 2:46Speaker 3: Trade war is over if you want it.
- 2:49Speaker 1: So over the weekend, Trump announced 10% tariffs on Chinese
- 2:53Speaker 1: goods and 25% tariffs on goods from our toughest adversaries,
- 2:57Speaker 1: Canada and Mexico.
- 2:59Speaker 2: That would mean every time a U.S.
- 3:01Speaker 1: Company imports products from those countries, food, cars, medicine, electronics,
- 3:06Speaker 1: they would have to pay an extra tax to the U.S. government,
- 3:10Speaker 1: and then most companies would make up for the added
- 3:12Speaker 1: expense by raising the prices they charge American consumers. The
- 3:16Speaker 1: tariffs were scheduled to go into effect on Tuesday night,
- 3:19Speaker 1: but then Trump agreed to last-minute deals with both Canada
- 3:22Speaker 1: and Mexico to pause tariffs for one month. Mexican President
- 3:26Speaker 1: Claudia Sheinbaum agreed to send 10,000 additional troops to the
- 3:31Speaker 1: border to help with illegal immigration and drug smuggling. which
- 3:35Speaker 1: Mexico also did at the beginning of Joe Biden's administration.
- 3:39Speaker 1: Prime Minister Justin Trudeau said Canada would implement the $ 1. 3
- 3:42Speaker 1: billion border plan that it had already announced in December,
- 3:46Speaker 1: launch a Canada-U.S. joint strike force to fight drug smuggling
- 3:49Speaker 1: and money laundering, which it also announced in December, and
- 3:55Speaker 1: the new thing, appoint a fentanyl czar, a Canadian fentanyl czar.
- 3:59Speaker 3: That guy's always late for work.
- 4:00Speaker 4: Yeah.
- 4:06Speaker 1: As far as we know, as of this recording on
- 4:09Speaker 1: Monday afternoon, the tariffs on China are still going into
- 4:11Speaker 1: effect as planned, though we're keeping a close eye on
- 4:15Speaker 1: Xi Jinping's Twitter feed. Just got to keep a close
- 4:18Speaker 1: eye on that while we're recording. Now, why was Trump
- 4:21Speaker 1: doing all this in the first place? Here's a sampling
- 4:24Speaker 1: of the explanations he's offered over the last few days,
- 4:26Speaker 1: including threats to start trade wars with our European allies
- 4:30Speaker 1: as well.
- 4:31Speaker 6: We put tariffs on. They owe us a lot of money.
- 4:35Speaker 6: And I'm sure they're going to pay. The UK is
- 4:37Speaker 6: out of line, but I'm sure that one, I think
- 4:39Speaker 6: that one can be worked out. But the European Union is,
- 4:44Speaker 6: it's an atrocity. We may have short-term, some little pain,
- 4:50Speaker 6: and people understand that. Canada's been very abusive of the
- 4:54Speaker 6: United States for many years.
- 4:55Speaker 7: What I'd like to see Canada become our 51st state.
- 4:59Speaker 7: As a state, it's different. As a state, It's much different.
- 5:02Speaker 7: And there are no tariffs. So I'd love to see that. But, uh,
- 5:07Speaker 7: some people say that would be a long shot.
- 5:10Speaker 2: Yeah. Some people do say that's a long shot.
- 5:12Speaker 4: He, he doesn't mean so bizarre right after that, which was, uh,
- 5:16Speaker 4: if they, if, if people were smart about the pain,
- 5:20Speaker 4: they'd be for it, but they're not smart about the pain.
- 5:22Speaker 3: He says something deeply, deeply troubling.
- 5:25Speaker 2: Oh, that's, that's right after unlike him right after, um,
- 5:29Speaker 2: All right. What do you guys think?
- 5:30Speaker 1: Did Mexico and Canada cave to Trump's pressure and just
- 5:34Speaker 1: his tough negotiating tactics? Or are these just fake concessions
- 5:40Speaker 1: that just let everyone save face?
- 5:42Speaker 5: Does that seem leading to you, that question?
- 5:47Speaker 4: It seems as though Trump really enjoyed beating the ever-loving
- 5:50Speaker 4: shit out of the Colombians. And now he's like feeling
- 5:53Speaker 4: tough and he's ready to move up the chain of
- 5:55Speaker 4: regional economies. And he's taking that quick victory out for
- 6:00Speaker 4: a spin.
- 6:00Speaker 5: Are we at like King Hippo if it's Mike Tyson
- 6:02Speaker 5: punch out? Where are we at?
- 6:05Speaker 3: I always struggle. I never got the timing right. I
- 6:07Speaker 3: never got the timing right.
- 6:08Speaker 2: Who's the first person? I always struggled. I was terrible
- 6:11Speaker 2: at that game. That's like the drunk Russian.
- 6:13Speaker 4: Oh, yeah, yeah.
- 6:15Speaker 5: That sounds right.
- 6:15Speaker 3: King Hippo.
- 6:17Speaker 5: Yeah, I mean, the fentanyl czar is going to have
- 6:19Speaker 5: some free time because I think USCBP had some data
- 6:22Speaker 5: about seizures at the northern border in 2022, 2023, and 2024,
- 6:25Speaker 5: and they found 70 pounds of fentanyl at the northern
- 6:29Speaker 5: border as compared to over 66,000 pounds at the southern border.
- 6:33Speaker 5: So I don't think the fentanyl issue was one with
- 6:36Speaker 5: Canada as much as it was with Mexico and with China.
- 6:38Speaker 4: Also, he said some number, I think he said like
- 6:41Speaker 4: there were 200,000 fentanyl deaths, but the number is actually.
- 6:45Speaker 4: Lower and had been dropping and so he's already going
- 6:47Speaker 4: to be able to declare that he's brought the number
- 6:49Speaker 4: down the debt you know he can already from his
- 6:52Speaker 4: fake number.
- 6:53Speaker 1: Here's so obviously trump thinks this is a big win
- 6:57Speaker 1: he'll get some coverage that says it's a win from
- 7:00Speaker 1: from regime media and his people his his supporters will
- 7:05Speaker 1: all say it's a big win maybe some low info
- 7:08Speaker 1: voters out there if they're paying attention at all we'll
- 7:11Speaker 1: see headlines and think oh maybe trump won but As
- 7:15Speaker 1: you heard in the clip, Trump's problems, at least his
- 7:18Speaker 1: stated problems with Mexico and Canada, and especially Canada, is
- 7:21Speaker 1: that they have abused us. They've treated us poorly economically.
- 7:24Speaker 1: He's got all these economic concerns about both of them.
- 7:26Speaker 1: He doesn't like the trade. He says that we don't
- 7:28Speaker 1: even need Canada for all the stuff that we buy
- 7:31Speaker 1: from them.
- 7:31Speaker 2: We can make it all here. This is ridiculous.
- 7:34Speaker 1: And yet all he got from either of them were
- 7:38Speaker 1: announcements about border security that they had already made or
- 7:41Speaker 1: already implementing or had already implemented in the past without
- 7:46Speaker 1: threats of a trade war. So I don't know what
- 7:49Speaker 1: he got at all or what he's doing. There's a
- 7:52Speaker 1: potential that as he tries to renegotiate trade deals with
- 7:56Speaker 1: Canada and Mexico, because he's going to open up the
- 7:58Speaker 1: trade deal that he himself negotiated with them last time,
- 8:02Speaker 1: that maybe he'll try to bring up some of these
- 8:05Speaker 1: issues again. He's upset about a trade deficit, I guess.
- 8:11Speaker 2: But I don't know. I don't think he got anything.
- 8:13Speaker 4: Yeah, there was a moment, he did yet another press
- 8:16Speaker 4: availability from the Oval this morning, sort of his daily
- 8:18Speaker 4: ritual at this point.
- 8:19Speaker 3: And he said, who the hell negotiated these deals?
- 8:21Speaker 2: You did.
- 8:22Speaker 5: Yeah, Jared Kushner did.
- 8:23Speaker 3: We're in your deals. These are all part of your deal.
- 8:26Speaker 4: Yeah, it's hard to, it's like, you know, we've just
- 8:30Speaker 4: been in this endless, we were right before recording, so
- 8:32Speaker 4: I'm like, I wonder what Trump is thinking about this,
- 8:34Speaker 4: which is always just sort of a fool's errand to
- 8:36Speaker 4: try to figure out.
- 8:37Speaker 2: So you never know, like is this- The one that
- 8:38Speaker 2: we face much of the show around.
- 8:40Speaker 4: And that's the contradiction- at the heart of this show, but, but,
- 8:44Speaker 4: but it's, it's, are we like, and I think there's
- 8:47Speaker 4: always a mix right between his sort of feral desire
- 8:51Speaker 4: for just new cycles, right? He's just, he's ravenous for
- 8:53Speaker 4: new cycles and he's, he got a great one out
- 8:55Speaker 4: of Columbia. He's going to declare that this was a great,
- 8:57Speaker 4: he feels this is a great one for him, right?
- 8:59Speaker 4: He threatens these tariffs. Uh, the media goes nuts. He
- 9:03Speaker 4: gets these concessions that he can brag about, declare victory.
- 9:06Speaker 4: And we're onto the next fight tomorrow. But then part
- 9:08Speaker 4: of it also is he is, this is now a cycle, right?
- 9:11Speaker 4: He has said, I will tariff you unless you come
- 9:14Speaker 4: to the table and negotiate, right? He's showing that, you know,
- 9:17Speaker 4: they never apply this on sanctions, but they do on tariffs,
- 9:21Speaker 4: which is the way you prove that if you concede something,
- 9:24Speaker 4: you might be rewarded by Trump is he withdrew them, right?
- 9:26Speaker 4: He's showing he's willing to be capricious and put in
- 9:28Speaker 4: place these disastrous tariffs that would harm both countries, but
- 9:31Speaker 4: he's also willing at a moment's notice to withdraw them.
- 9:34Speaker 4: So he's setting, now we have a 30-day cycle. We're
- 9:38Speaker 4: going to do this again in 30 days, I guess.
- 9:39Speaker 5: Yeah, I think it's going to be a lot easier
- 9:41Speaker 5: to get either real concessions or just lip service out
- 9:43Speaker 5: of the Canadians and the Mexicans than it will be
- 9:45Speaker 5: out of the Chinese. Xi Jinping is not going to
- 9:48Speaker 5: bend or break easily. And so it does look like, ultimately,
- 9:52Speaker 5: I think the results matter a lot less to Trump
- 9:54Speaker 5: than the politics. There were stories in the Wall Street
- 9:56Speaker 5: Journal a week ago about how the Canadians didn't know
- 9:59Speaker 5: what he wanted. They were on the other end of
- 10:01Speaker 5: this fight. They didn't know what they were negotiating over.
- 10:04Speaker 2: Turns out the answer was a fentanyl czar.
- 10:05Speaker 5: Yeah, they wanted a new czar. But Trump looks like
- 10:08Speaker 5: he's taking action. He's getting stuff done. He's making progress. Um,
- 10:12Speaker 5: he's picking big fights. So it's splashy. It's getting covered.
- 10:15Speaker 2: You're right.
- 10:15Speaker 5: State media is covering it, but so is every other
- 10:18Speaker 5: news outlet that's, you know, trying to follow this administration.
- 10:20Speaker 5: So I think it's really smart politics for him.
- 10:23Speaker 1: I think though that you just have to ask yourself
- 10:24Speaker 1: like Justin Trudeau and Claudia Shane bomb right now, what
- 10:29Speaker 1: are they thinking? Are they thinking, Oh, he really got us? No,
- 10:32Speaker 1: probably not because they didn't have to give up anything.
- 10:34Speaker 3: Well, Trudeau's out of a job.
- 10:35Speaker 2: So he's thinking, right.
- 10:36Speaker 1: But it's not like, sure, everyone can say whatever they
- 10:41Speaker 1: want and he can say whatever he want about how
- 10:42Speaker 1: he pulled one over on people. But like the two,
- 10:45Speaker 1: the two people, the two countries he supposedly pulled one
- 10:47Speaker 1: over on are probably pretty happy right now because there's
- 10:50Speaker 1: no trade war and they didn't have to spend any
- 10:53Speaker 1: more money than they were going to.
- 10:54Speaker 4: I was, um, I clicked on over to click on
- 10:56Speaker 4: over on over to CNBC to see what those guys
- 10:58Speaker 4: were up to. I don't really check in with them
- 10:59Speaker 4: very much. I thought today was a great day. They're
- 11:01Speaker 4: there every day, you know, which is crazy.
- 11:03Speaker 1: But Yeah, Jim Cramer this morning said it's really bad
- 11:07Speaker 1: and it's going to be a really long, bad day.
- 11:08Speaker 5: Well, you know what you do with a Jim Cramer prediction?
- 11:10Speaker 5: You bet the other side, almost exclusively.
- 11:13Speaker 4: But they had the oil industry types on to talk
- 11:17Speaker 4: about what they thought about. All of a sudden, they
- 11:19Speaker 4: were all being very, very careful not to say anything
- 11:21Speaker 4: to offend Mr.
- 11:22Speaker 3: Trump.
- 11:23Speaker 4: But they talked about how they had negotiated, basically from
- 11:26Speaker 4: their own pressure, they had pushed for Trump to lower
- 11:29Speaker 4: the tariffs on oil.
- 11:31Speaker 2: Oil, right?
- 11:32Speaker 3: So it's, you know, like, why is he doing that?
- 11:34Speaker 4: Well, he's facing, the lobbyists are getting through, which is
- 11:36Speaker 4: just a reminder, by the way, that tariffs are a
- 11:37Speaker 4: great mechanism for Trump, not just to have new cycles,
- 11:40Speaker 4: but to keep American industries in heel. But you say
- 11:46Speaker 4: it's like a, you know, I'm sure they're relieved that
- 11:47Speaker 4: these tariffs aren't going into effect, but like the auto
- 11:51Speaker 4: industry that is incredibly interdependent is jeopardized by the threat
- 11:56Speaker 4: of these looming tariffs that will hang over these companies
- 11:58Speaker 4: for months to come. based on these free to trade agreements,
- 12:01Speaker 4: build a whole bunch of interdependent industries, oil refineries and
- 12:05Speaker 4: all the rest that depend on the United States not
- 12:08Speaker 4: being a malicious actor that suddenly on a dime decides
- 12:12Speaker 4: they're going to throw a giant tariff on our closest neighbor.
- 12:15Speaker 4: And so like, yeah, like we're on the other side
- 12:18Speaker 4: of this right now, but the threat is still there.
- 12:21Speaker 4: And Trump knows that the prospective threat of tariffs is
- 12:24Speaker 4: more useful to him than ever implementing them, sure. But
- 12:27Speaker 4: I don't know how you get out of a cycle
- 12:28Speaker 4: where people start to decide the United States is not
- 12:30Speaker 4: worth doing business with.
- 12:32Speaker 2: Right? No, no.
- 12:32Speaker 1: I think, I think the whole thing is damaging for sure.
- 12:35Speaker 1: Damaging to us probably, uh, as, as people want to
- 12:38Speaker 1: do business with us. Uh, because at some point someone's
- 12:40Speaker 1: going to say, well, I'm going to call this bluff
- 12:42Speaker 1: because so far he, all he does for the, his
- 12:45Speaker 1: first term. And now this term is he threatens and
- 12:47Speaker 1: then maybe he slaps a small tariff on something or, or,
- 12:51Speaker 1: or targeted tariffs here, but it's not, not really a
- 12:54Speaker 1: big deal.
- 12:54Speaker 2: I also think that, um, you know, there was this
- 12:57Speaker 2: whole debate.
- 12:58Speaker 1: Is he using the tariffs as a negotiating threat or
- 13:01Speaker 1: does he just really believe that tariffs are good? And
- 13:06Speaker 1: by nominating and then confirming Scott Besant for treasury secretary,
- 13:10Speaker 1: he seemed to be of the view that tariffs are
- 13:13Speaker 1: just a good negotiating tactic. But then of course, over
- 13:16Speaker 1: the weekend, when it seemed like that was going to happen,
- 13:18Speaker 1: all of the MAGA people are all arguing Trump's point
- 13:21Speaker 1: that tariffs are actually great. And this is, you know,
- 13:23Speaker 1: Trump himself posted, we should get rid of the income
- 13:26Speaker 1: tax and just have tariffs. And these tariffs are going
- 13:28Speaker 1: to fill our coffers and we're going to have so
- 13:30Speaker 1: much more money and we're going to show these countries blah, blah, blah.
- 13:32Speaker 2: And it's like, well, what happened to that now? Well, yeah,
- 13:35Speaker 2: the J.D.
- 13:35Speaker 5: Vance theory of the case is you throw in the
- 13:36Speaker 5: tariffs and you create a big domestic industry. But these
- 13:39Speaker 5: are all long game proposals that will take decades to
- 13:42Speaker 5: play out. And Trump's just dicking around and doing a
- 13:44Speaker 5: political move. Like it's clearly just naked politics. He wants
- 13:47Speaker 5: to look like he's taking action. I think it's pretty
- 13:49Speaker 5: effective in that sense.
- 13:50Speaker 4: Yeah, I talked about this with Dees briefly, but like
- 13:52Speaker 4: when I woke up, I was like, let's see what's
- 13:54Speaker 4: happening with this trade war. And I just checked the Dow.
- 13:56Speaker 4: I don't know if I checked the Dow in the morning.
- 13:57Speaker 4: I'm not a Dow checking guy. But then you look
- 13:59Speaker 4: and it's like the people that are, you know, so
- 14:02Speaker 4: keyed into this are not that afraid.
- 14:04Speaker 3: Right.
- 14:04Speaker 4: It like went down a little bit. Then they saw
- 14:06Speaker 4: the Mexican deal and it kind of ticked back up again.
- 14:08Speaker 4: So they all like there is a kind of collective
- 14:10Speaker 4: belief that at the moment in the morning, I was like,
- 14:12Speaker 4: it's either a delusion or not that this Trump is
- 14:15Speaker 4: just bluffing.
- 14:16Speaker 3: He doesn't actually want to do this. But Trump is
- 14:18Speaker 3: so emboldened.
- 14:20Speaker 4: And gain so much power from the fact that we
- 14:22Speaker 4: don't totally know what he'll do and we're not really
- 14:23Speaker 4: sure what he means. And we pay for that. We
- 14:26Speaker 4: pay for that by the fact that the whole world
- 14:28Speaker 4: today was focused on what was.
- 14:29Speaker 3: Going to happen today.
- 14:29Speaker 7: Yeah.
- 14:30Speaker 1: I also don't really understand. I know how he thinks
- 14:33Speaker 1: about it, but I don't really understand what kind of
- 14:35Speaker 1: political win he thinks he's getting two weeks into his
- 14:38Speaker 1: administration in one news cycle.
- 14:40Speaker 2: It's like, great.
- 14:42Speaker 1: Everyone's going to forget about it in three days unless
- 14:45Speaker 1: we get 30 days from now and then he makes
- 14:47Speaker 1: up some other big fucking... problem that canada and mexico
- 14:50Speaker 1: doing he does this all over.
- 14:51Speaker 5: Again yeah i just think it's like the casual news
- 14:53Speaker 5: observer the just the headline person like uh you see
- 14:55Speaker 5: trump he beat up on the canadians he got some
- 14:58Speaker 5: concessions like good for him doing stuff.
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- 16:14Speaker 1: two free dream pillows with mattress purchase. All right, let's
- 16:19Speaker 1: talk about Trump's war at home against the government he leads.
- 16:28Speaker 1: The president has essentially given Elon Musk the keys to
- 16:30Speaker 1: the kingdom, and the world's richest man is now acting
- 16:33Speaker 1: like he's the one people voted for. Here's the headline
- 16:35Speaker 1: from the libs over at the Wall Street Journal. Musk
- 16:38Speaker 1: moves with lightning speed to exert control over the government.
- 16:43Speaker 1: Elon and his gang of Gen Z dogebros, Got a
- 16:47Speaker 1: couple of 19, 20, 21-year-olds right out of college, fresh
- 16:51Speaker 1: out of college, and now they are just running around
- 16:53Speaker 1: the federal government.
- 16:54Speaker 5: J.C., who is in the Oval Office today.
- 16:57Speaker 4: Oh, yeah.
- 16:57Speaker 5: Rupert Murdoch.
- 16:59Speaker 2: And Larry Ellison.
- 17:00Speaker 5: Larry Ellison.
- 17:00Speaker 3: Just hanging out.
- 17:02Speaker 4: During the press avail, they asked Trump about the Wall
- 17:04Speaker 4: Street Journal saying that this was Trump's dumbest trade war.
- 17:08Speaker 2: He didn't love that.
- 17:09Speaker 4: And he didn't like it. He said he's going to
- 17:10Speaker 4: have to bring that up with Rupert. And I guess
- 17:11Speaker 4: he really meant it that day.
- 17:12Speaker 3: Rupert was sitting.
- 17:13Speaker 5: Right there with a question with us.
- 17:15Speaker 6: Yeah.
- 17:16Speaker 2: We didn't talk about that.
- 17:17Speaker 1: I did wonder if some of the market stuff and
- 17:21Speaker 1: Rupert and Wall Street Journal and the old establishment Republicans
- 17:24Speaker 1: that basically no longer exist started getting him like, hey,
- 17:28Speaker 1: the markets could be fucked here.
- 17:29Speaker 5: Well, this was the whole thing. The whole first term,
- 17:31Speaker 5: his China policy was flip-flopping back and forth between hardline
- 17:34Speaker 5: hawks and the market whisperers like Mnuchin and others who
- 17:37Speaker 5: were saying, don't do it. You don't want Dow to
- 17:40Speaker 5: go down. You don't want the S & P to drop.
- 17:42Speaker 1: So anyway, so Elon and all of his fucking nerds,
- 17:45Speaker 1: they're running throughout the federal government now. Um, they demanded
- 17:49Speaker 1: and ultimately won access to the treasury department's payment system,
- 17:54Speaker 1: which is how the government pays its bills and delivers
- 17:57Speaker 1: benefits to people that are already mandated by law. So
- 18:01Speaker 1: by the time it gets to the payment system, it's,
- 18:03Speaker 1: it's all a bunch of career officials. They're nonpartisan. They're
- 18:06Speaker 1: just like, it's just the spigot. They're just turning it on.
- 18:08Speaker 1: All right, now we're just paying the bills. Um, So
- 18:11Speaker 1: now this means that Elon and his crew has access
- 18:15Speaker 1: to the personal information of every U.S.
- 18:18Speaker 2: Taxpayer, social security numbers, all of it.
- 18:21Speaker 1: Elon then claimed without any evidence whatsoever that Treasury, he
- 18:25Speaker 1: discovered that Treasury was making illegal payments, including to some terrorists,
- 18:31Speaker 1: and that he was shutting them down.
- 18:34Speaker 2: Seems bad. What's your level of alarm on this one, guys?
- 18:36Speaker 4: Presumably we're mailing the checks to those terrorists, so probably good.
- 18:40Speaker 4: see that address go there.
- 18:42Speaker 2: Yeah.
- 18:42Speaker 5: Uncle Sam's Venmo. Do we have the ISIS account?
- 18:45Speaker 4: It just sort of like, seems like that's like a,
- 18:47Speaker 4: you're kind of over-promising and under-delivering. If you found terrorists
- 18:51Speaker 4: in the payment system, we'll see where the checks are going.
- 18:53Speaker 5: I meant hummus, not Hamas. How do we route that
- 18:56Speaker 5: money in the wrong place? Who are we sending hummus to? No,
- 18:59Speaker 5: it was payment for.
- 19:00Speaker 2: Payment for hummus, I'm sorry.
- 19:01Speaker 5: You know what I mean?
- 19:02Speaker 2: We split that app.
- 19:03Speaker 3: It was hummus for Hamas, unfortunately, and condoms.
- 19:07Speaker 5: Which was just made up and you said it again.
- 19:09Speaker 2: Yeah.
- 19:09Speaker 4: Yeah.
- 19:10Speaker 5: Anyway, this is pretty... First of all, I didn't know
- 19:12Speaker 5: that Uncle Sam had a Venmo. This seems alarming and unprecedented.
- 19:18Speaker 5: Like Elon Musk, just an unelected tech billionaire wrestling away
- 19:21Speaker 5: congressional authority to spend money in the Treasury Department's role
- 19:25Speaker 5: in the whole process. And I don't know, like this vindictive,
- 19:28Speaker 5: unstable man calling USAID evil and leftist Marxist terrorist supporters.
- 19:35Speaker 5: This all seems like a pretty bad setup.
- 19:36Speaker 1: I forgot to mention that When they originally demanded access,
- 19:40Speaker 1: they were told no by the career official in charge
- 19:42Speaker 1: of the payment system at Treasury, who was acting Treasury
- 19:48Speaker 1: Secretary at the time before Besant was confirmed and had
- 19:51Speaker 1: been appointed i believe by donald trump in the first
- 19:54Speaker 1: administration so this is no crazy marxist lib and he
- 19:58Speaker 1: said no that's crazy you can't have access to the
- 20:01Speaker 1: pain system you're not like this group of kids that
- 20:04Speaker 1: you brought in from silicon valley they're not even government
- 20:07Speaker 1: employees and they don't have uh They don't have security clearances. No,
- 20:10Speaker 1: we're not giving you access to the sensitive payment system
- 20:13Speaker 1: that distributes trillions of dollars every year.
- 20:16Speaker 2: And then he had to step aside. They got him
- 20:19Speaker 2: right out of there.
- 20:20Speaker 4: It's also, you know, it's like a, it's obviously like
- 20:24Speaker 4: the most sort of sensational example. But it's also just,
- 20:31Speaker 4: if your goal is getting government spending under control, obviously
- 20:36Speaker 4: this is dangerous money.
- 20:38Speaker 3: And unhinged.
- 20:38Speaker 4: It's also very stupid because if you're trying to get
- 20:42Speaker 4: overall government spending under control, I don't care how many
- 20:45Speaker 4: 19-year-olds you brought with you from Doge and I don't
- 20:47Speaker 4: care how many fucking sofa beds you bring into the OMB,
- 20:51Speaker 4: you're going line by line through the fucking ledger. Like,
- 20:55Speaker 4: this is a vast apparatus.
- 20:57Speaker 2: There are.
- 20:57Speaker 5: But also.
- 20:59Speaker 1: It's the wrong ledger. You didn't need access to the
- 21:02Speaker 1: payment system. There's the federal budget that you could just
- 21:04Speaker 1: go line by line through.
- 21:05Speaker 3: But that's my point.
- 21:06Speaker 4: These people have so little knowledge or respect. I want
- 21:11Speaker 4: to get to the danger that this poses, the moral
- 21:14Speaker 4: and ethical risks that this poses. But let's just start
- 21:18Speaker 4: by pointing out this is a stupid thing to do.
- 21:22Speaker 4: This is a stupid way to try to achieve what
- 21:24Speaker 4: they want to achieve because it is not actually about results.
- 21:27Speaker 4: It's about being the stars of a drama, the drama
- 21:31Speaker 4: of reforming the government from the inside with our daybeds
- 21:36Speaker 4: and our doge and our hardcore and our emails and
- 21:39Speaker 4: our exciting, exciting progress. And that to me is driving
- 21:43Speaker 4: all of this, not the actual practical realities of what
- 21:45Speaker 4: anything they'd, on their own terms, what they want to do.
- 21:48Speaker 2: Well, but that's the key, on their own terms.
- 21:51Speaker 1: If what they want to do really is cut spending
- 21:56Speaker 1: in the government and that's it, then the whole thing
- 21:59Speaker 1: is really stupid and they're going about it the wrong way.
- 22:02Speaker 1: But maybe that's not what they really want to do
- 22:04Speaker 1: and that's why they tried to get access to the
- 22:06Speaker 1: payment system in the U.S.
- 22:08Speaker 2: Government.
- 22:08Speaker 1: And where the shit really hits the fan is we're
- 22:11Speaker 1: going to go into probably a debt ceiling crisis in
- 22:14Speaker 1: March when they're trying to raise the debt ceiling and
- 22:17Speaker 1: Treasury already is using extraordinary measures to keep us from
- 22:21Speaker 1: hitting the debt ceiling because we should have raised it
- 22:25Speaker 1: As always, we're raising it late, as we have for
- 22:27Speaker 1: the last two decades. And Treasury and that department are
- 22:31Speaker 1: responsible for making sure that the U.S. keeps paying our
- 22:34Speaker 1: bills and that the full faith and credit of the
- 22:37Speaker 1: United States government is respected and counted on all over
- 22:39Speaker 1: the world.
- 22:40Speaker 5: Also, apparently, even in past financial crises or debt ceiling fights,
- 22:45Speaker 5: the political staff have never done this. They've always let
- 22:50Speaker 5: career civil servants handle this kind of sensitive information. And
- 22:52Speaker 5: by the way, There was some reporting about the identities
- 22:56Speaker 5: of members of the Doge team, these tweens and teens
- 22:59Speaker 5: running around the place.
- 23:00Speaker 2: I don't think there are any tweens.
- 23:03Speaker 5: You don't know that.
- 23:04Speaker 2: You don't know that there were tweens. I like calling
- 23:05Speaker 2: them tweens. Good job, Tom. Now the U.S.
- 23:07Speaker 5: Attorney for the District of Columbia is threatening to arrest
- 23:10Speaker 5: people or prosecute people that, I guess, expose their identities
- 23:14Speaker 5: or put them at risk in some kind of way.
- 23:16Speaker 5: And now you've got Elon's army of dipshits and losers
- 23:20Speaker 5: on Twitter saying, now doxing the reporters who reported on
- 23:24Speaker 5: the Doge staffers and leading them getting threats.
- 23:26Speaker 2: So this is just incredibly facistic. The U.S.
- 23:29Speaker 1: Attorney for D.C. who now, who used to be the
- 23:33Speaker 1: guy who defended all the January 6th rioters.
- 23:35Speaker 2: He's a good guy. He was now made the U.S.
- 23:37Speaker 2: attorney in D.C.
- 23:38Speaker 4: The, the, so much of this too, like it's Trump,
- 23:43Speaker 4: how Trump is threatening tariffs, how Elon is operating Doge.
- 23:49Speaker 4: It is all kind of, childish kind of buffoonish people
- 23:55Speaker 4: drafting off the, the like stability and success and institutions
- 24:01Speaker 4: that they don't respect at all. Like Elon and this
- 24:03Speaker 4: group of people, they don't care or know why we make,
- 24:06Speaker 4: why we did things the way we did for a
- 24:08Speaker 4: really long time. They don't know or care why we
- 24:10Speaker 4: had these independent parts of the government. They don't haven't
- 24:14Speaker 4: thought deeply about why it's actually a very good thing
- 24:16Speaker 4: that when the treasury says, Hey, we have four months
- 24:18Speaker 4: until we're out of money. that both Democrats and Republicans
- 24:20Speaker 4: that are negotiating over spending in Congress respect that. And
- 24:23Speaker 4: more broadly, they don't respect that like, yeah, cutting the budget,
- 24:29Speaker 4: finding waste and fraud, like these are time-consuming and difficult
- 24:32Speaker 4: projects that require audits and negotiation and compromise that are
- 24:35Speaker 4: slow and annoying and frustrating and imperfect. Like they don't
- 24:38Speaker 4: respect or care about that process at all.
- 24:40Speaker 3: It's not hardcore.
- 24:41Speaker 4: It's not how they do it in business because they
- 24:43Speaker 4: don't understand the value of like democratic legitimacy. They don't
- 24:47Speaker 4: appreciate or care about these institutions. And the fact that
- 24:50Speaker 4: they belong not to like Elon or Trump, but they
- 24:52Speaker 4: belong to us. And that basic lack of respect, like
- 24:54Speaker 4: humility is just absent.
- 24:58Speaker 2: It's absent.
- 24:58Speaker 3: And I know it like kind of almost goes without saying,
- 25:00Speaker 3: but I think it's worth saying.
- 25:01Speaker 1: Well, yeah, because billionaire tech founders don't run their businesses
- 25:04Speaker 1: like a democracy. That's the whole point. They're like, they're
- 25:06Speaker 1: authoritarians in their own little fiefdoms. And they look at
- 25:10Speaker 1: the federal government and they're like, oh, it's so wasteful
- 25:13Speaker 1: and inefficient. And why can't they just run? Why can't
- 25:15Speaker 1: the person in charge just make all the, make all
- 25:17Speaker 1: the calls there too.
- 25:19Speaker 2: Oh, wait a minute. Right.
- 25:20Speaker 3: We tried that. We tried that.
- 25:21Speaker 2: The system that we have here, democracy, this seems, I
- 25:24Speaker 2: don't know about this.
- 25:24Speaker 4: And a lot of people thought it was stupid to
- 25:27Speaker 4: do it the way we decided to try to do it.
- 25:28Speaker 4: They're like, what do you mean you don't have one
- 25:29Speaker 4: person making all the rules?
- 25:30Speaker 3: Isn't that going to be messy?
- 25:31Speaker 6: Yes. Yes.
- 25:33Speaker 3: But it turns out it has some perks.
- 25:35Speaker 1: When Besson found out about the whole thing, apparently he
- 25:37Speaker 1: told the journal, the Wall Street Journal, or sources told
- 25:40Speaker 1: the Wall Street Journal that they have only read-only access
- 25:44Speaker 1: to the payment systems and that they cannot cut off
- 25:46Speaker 1: any payments themselves, which contradicts Elon's tweet where he said,
- 25:51Speaker 1: we are stopping these payments immediately.
- 25:54Speaker 2: So a little unclear what's going on there.
- 25:57Speaker 3: Who knows what's going on? It changes hour to hour.
- 25:58Speaker 3: We have no idea.
- 26:00Speaker 1: Doge also busted into the USAID building this weekend. That's
- 26:04Speaker 1: the agency responsible for humanitarian assistance around the world. And
- 26:07Speaker 1: they demanded access to classified information and personnel information. When
- 26:11Speaker 1: USAID security officials resisted, they were put on leave. Elon
- 26:15Speaker 1: then tweeted that USAID is an evil criminal organization, a
- 26:19Speaker 1: viper's nest of radical left Marxists who hate America, and
- 26:23Speaker 1: that it's time for the agency to die. This was
- 26:26Speaker 1: quite a tweet spree Sunday. USAID's website and Twitter account
- 26:31Speaker 1: were then taken down, and staffers were locked out of
- 26:33Speaker 1: the building in their email accounts. Even staffers all over
- 26:36Speaker 1: the world in some very dangerous places could not access
- 26:40Speaker 1: USAID contacts, their emails, nothing. Then on Monday, Secretary of
- 26:45Speaker 1: State Marco Rubio announced that USAID would become part of
- 26:47Speaker 1: the State Department and that he was now acting administrator.
- 26:51Speaker 1: Trump also weighed in on all this insanity.
- 26:53Speaker 2: Let's listen.
- 26:54Speaker 3: Would it take an act of Congress to do away
- 26:56Speaker 3: with USAID?
- 26:57Speaker 2: I don't know.
- 26:59Speaker 8: I don't think so. Not when it comes to fraud.
- 27:02Speaker 8: If there's fraud, these people are lunatics. And if it
- 27:06Speaker 8: comes to fraud, you wouldn't have an active Congress. And
- 27:09Speaker 8: I'm not sure that you would anyway.
- 27:10Speaker 7: I love the concept, but they turn out to be
- 27:12Speaker 7: radical left lunatics.
- 27:15Speaker 9: And the concept of it is good, but it's all
- 27:17Speaker 9: about the people.
- 27:18Speaker 2: It's interesting that he says he loves the concept there.
- 27:21Speaker 2: I don't think you do.
- 27:22Speaker 1: Of course, you do need a law passed by Congress
- 27:26Speaker 1: to completely defund and eliminate an agency. Anyway, it's obviously
- 27:31Speaker 1: not how the people who actually work at USAID see it,
- 27:34Speaker 1: the way that Elon sees it. We talked to Brittany Brown,
- 27:38Speaker 1: who was a former division head at USAID, right after
- 27:40Speaker 1: she got back from a protest outside the agency's headquarters
- 27:43Speaker 1: in D.C.
- 27:43Speaker 2: On Monday. Let's listen to Brittany.
- 27:46Speaker 10: I'm Brittany Brown. I was at USAID for four years,
- 27:49Speaker 10: starting the second week of the Biden administration. And I
- 27:52Speaker 10: stayed through January 20th at noon of this year. So
- 27:56Speaker 10: about 10 days ago, what happened was they put a
- 27:59Speaker 10: stop work order on all US foreign assistance and that
- 28:03Speaker 10: impacted about $ 60 billion of assistance. I think we've seen
- 28:07Speaker 10: now in the last three days that it really is
- 28:10Speaker 10: an attempt to shut down the US Agency for International
- 28:13Speaker 10: Development or USAID. What is really important about this versus
- 28:17Speaker 10: just like a pause on assistance is they didn't just
- 28:20Speaker 10: stop new money from going out the door. The thing
- 28:23Speaker 10: that's like really scary to me is the guy who
- 28:25Speaker 10: is in charge of holding together the humanitarian portion of
- 28:30Speaker 10: the ceasefire with Israel in Gaza. He cannot access his
- 28:34Speaker 10: email or computer. He's the one who's supposed to be
- 28:37Speaker 10: like actually making sure the humanitarian portion of that is
- 28:41Speaker 10: working and he can't get into his email. The woman
- 28:44Speaker 10: who is running the humanitarian response in Sudan, where we
- 28:48Speaker 10: just declared a genocide, she can't access her email or
- 28:51Speaker 10: get into her systems to try and move money, to
- 28:54Speaker 10: try and move commodities so that we actually can support
- 28:56Speaker 10: the people who are now without any international support. These
- 29:01Speaker 10: are all people that I know. I spent the first
- 29:05Speaker 10: seven months of the first Trump administration at the Trump
- 29:08Speaker 10: White House as Trump's senior Africa person. And I saw
- 29:13Speaker 10: firsthand that things were rarely what they said they were.
- 29:17Speaker 10: And that is why I feel so panicked about what
- 29:21Speaker 10: they're saying versus what is happening. I think this is
- 29:24Speaker 10: a test to see, is Congress actually going to stand
- 29:28Speaker 10: up for their right and for something that the Constitution protects?
- 29:31Speaker 10: USAID is a really safe organization to test this with.
- 29:35Speaker 10: It is difficult to explain to the average American why
- 29:38Speaker 10: spending $ 60 billion today overseas makes sense. It's not like
- 29:42Speaker 10: the people in Wisconsin are concerned about what is happening
- 29:47Speaker 10: necessarily in Somaliland or in Eswatini. They're thinking about Wisconsin.
- 29:53Speaker 1: So it seems to me, again, that if President Trump
- 29:56Speaker 1: and Elon Musk wanted to root out wasteful spending at USAID.
- 30:00Speaker 1: They could have just conducted an audit of the agency's
- 30:04Speaker 1: budget and then asked their Republican-controlled Congress to make a
- 30:08Speaker 1: bunch of cuts. Clearly, that's not what happened. Tommy, what
- 30:11Speaker 1: do you think is going on here and how big
- 30:12Speaker 1: of a deal is this?
- 30:14Speaker 5: I think that this is not about wasteful spending or
- 30:17Speaker 5: even about USAID. I think this is a broader effort
- 30:20Speaker 5: to usurp Congress's role in the spending process and create
- 30:24Speaker 5: a precedent that they can then use again and again. Um, the,
- 30:27Speaker 5: just to be clear, the president does not have the
- 30:29Speaker 5: legal authority to abolish USAID. Congress established USAID's authority apart
- 30:34Speaker 5: from state and merging it with state, uh, would also
- 30:36Speaker 5: be unconstitutional. So this is just a power grab. And
- 30:40Speaker 5: I think how it goes could determine whether there's another
- 30:43Speaker 5: power grab. You're seeing some reporting that the department of
- 30:46Speaker 5: education could be next. That's the thing in Elon's crosshairs.
- 30:49Speaker 5: And it is part of a broader pattern that we're
- 30:51Speaker 5: seeing in these, in these first two weeks of them
- 30:54Speaker 5: ignoring or breaking the law. ignoring norms to seize power.
- 30:58Speaker 5: So they fired those inspectors general at all these agencies.
- 31:02Speaker 5: They did it illegally by not giving Congress sufficient notice.
- 31:06Speaker 5: It would have been very easy to give Congress 30
- 31:08Speaker 5: days notice and then fire all these people. The Republicans
- 31:10Speaker 5: wouldn't stop them. They wanted to have this fight and
- 31:12Speaker 5: maybe take it to courts and win in court. They
- 31:15Speaker 5: have crippled the National Labor Relations Board by firing a member.
- 31:19Speaker 5: So now the NLRB doesn't have enough members to meet.
- 31:21Speaker 5: So they don't have a quorum. That means in practice,
- 31:24Speaker 5: this independent agency that is supposed to investigate and prosecute
- 31:28Speaker 5: labor law violations cannot do its job. Similar thing happened
- 31:31Speaker 5: at the Equal Employment Opportunity Commission, or EEOC. They are
- 31:34Speaker 5: browbeating Republican senators into supporting unqualified nominees. This is a massive,
- 31:41Speaker 5: unprecedented power grab. And Democrats, I think, don't really know
- 31:45Speaker 5: how to fight it or don't have the power to
- 31:46Speaker 5: fight it. And Republicans just refuse to.
- 31:50Speaker 1: And you said maybe they're looking for a fight that
- 31:54Speaker 1: they can take to court and win. the thing that
- 31:57Speaker 1: has been keeping me up at night for months is
- 31:59Speaker 1: that they go to court with some of these fights
- 32:02Speaker 1: and then they lose. And then Donald Trump says, fuck you,
- 32:05Speaker 1: John Roberts and the Supreme court, uh, the Supreme court, uh,
- 32:09Speaker 1: what are you going to do about it? And I
- 32:10Speaker 1: think that this was, this was corrupt and the justice
- 32:12Speaker 1: was wrong and I don't agree with them and I'm
- 32:13Speaker 1: going to do what I want.
- 32:15Speaker 2: Yeah.
- 32:15Speaker 1: Bob Bauer, who was a white house counsel, uh, for, um,
- 32:20Speaker 1: in the Obama administration and, uh, Jack Goldsmith, who was, uh, uh,
- 32:24Speaker 1: in the white house counsel for, uh, a Republican administration.
- 32:28Speaker 1: They both wrote this and they said that Russ vote,
- 32:30Speaker 1: who's going to head up OMB, like his view of
- 32:35Speaker 1: the constitution is, is that you should try to push
- 32:38Speaker 1: the court and maybe defy court orders because you want,
- 32:41Speaker 1: or you want the court to give you favorable rulings
- 32:44Speaker 1: because the court is afraid that if the court gives you,
- 32:48Speaker 1: gives Donald Trump like rulings that he doesn't like, then he'll, say,
- 32:52Speaker 1: fuck you.
- 32:53Speaker 2: And then that'll be it. Right.
- 32:54Speaker 4: That the court needs to balance its constitutional prerogative with
- 32:56Speaker 4: the fear that Trump will break the rules. And so
- 32:59Speaker 4: they negotiate, uh, they negotiate against themselves, but allowing Trump
- 33:03Speaker 4: to be unconstrained without him ever having to break a rule,
- 33:05Speaker 4: by the way, not dissimilar to what, uh, news agencies
- 33:08Speaker 4: are doing when they capitulate to Trump on lawsuits that
- 33:10Speaker 4: they're afraid to fight all the way to.
- 33:12Speaker 3: The Supreme court.
- 33:12Speaker 4: There are two pieces of it that I think are
- 33:14Speaker 4: worth splitting up. One is what they're doing around these
- 33:18Speaker 4: firings or the national labor relations board. Um, in which
- 33:22Speaker 4: they are basically asserting that any bounds on Trump and
- 33:25Speaker 4: his ability to decide who works for him and where
- 33:28Speaker 4: in the executive branch are unconstitutional, which is not a
- 33:30Speaker 4: theory that Donald Trump invented. It's called the unitary executive theory.
- 33:34Speaker 4: It precedes him, and it is the way in which
- 33:36Speaker 4: Trump's instinctive strongman politics merge with the Republican desire for
- 33:40Speaker 4: an imperial presidency, incredibly dangerous in part because that ideological
- 33:45Speaker 4: desire for an extremely powerful presidency is is not just
- 33:50Speaker 4: in what Republicans in Congress want or what previous Republican
- 33:52Speaker 4: presidents want. It's what the Republican courts seem willing to
- 33:55Speaker 4: go along with. The other part of this is the
- 33:57Speaker 4: power of the purse. And it is interesting that Trump,
- 34:04Speaker 4: whether it is because they didn't want to have the
- 34:06Speaker 4: fight on this issue or they do think they would
- 34:09Speaker 4: be constrained by a court ruling, that they withdrew the
- 34:12Speaker 4: federal funding freeze and were willing to kind of give
- 34:14Speaker 4: on that, right? It points to the places in which
- 34:16Speaker 4: they're still responding to kind of the old rules, at
- 34:20Speaker 4: least a little bit. At least that's maybe a glimmer
- 34:21Speaker 4: of hope that they are.
- 34:23Speaker 1: One of the federal judges that tried to freeze the
- 34:28Speaker 1: freeze and issued a restraining order said just today, Monday,
- 34:33Speaker 1: that she doesn't believe that the Trump administration is abiding
- 34:38Speaker 1: by the restraining order and ordered them again to.
- 34:43Speaker 2: Stop the freeze.
- 34:44Speaker 5: It also sounds like that OPM letter went through Elon
- 34:47Speaker 5: shop and did not go by people like Stephen Miller
- 34:50Speaker 5: and other top White House officials. So I'm sure there's
- 34:52Speaker 5: some intra administration.
- 34:53Speaker 4: There's well, there's, and they're just, they're benefiting from chaos
- 34:57Speaker 4: and incompetence, right? Like Cassidy, uh, uh, uh, Bill Cassidy,
- 35:00Speaker 4: Republican Senator put out a letter today saying PEPFAR still
- 35:02Speaker 4: seems to be on hold. Just PEPFAR was a Bush initiative,
- 35:06Speaker 4: Republican initiative to spend vast amounts of money to combat, uh,
- 35:10Speaker 4: HIV and AIDS in Africa. I, I remember when this
- 35:13Speaker 4: was a debate at the time, Bush didn't like USAID.
- 35:16Speaker 4: And so he set it up separately because he wanted
- 35:19Speaker 4: it to run through the state department because of the
- 35:21Speaker 4: previous Republican problems with USAID. That's still being held, even
- 35:25Speaker 4: though they're claiming that these things have a waiver, but
- 35:27Speaker 4: on the power of the purse, what Trump is doing
- 35:30Speaker 4: here is he's basically saying, uh, I have the latitude
- 35:35Speaker 4: to turn off everything and then by noblesse oblige, turn
- 35:38Speaker 4: it back on.
- 35:39Speaker 7: Right.
- 35:40Speaker 4: And I don't like, We have spent a long time
- 35:44Speaker 4: watching as the presidency kind of encroached upon Congress's prerogatives,
- 35:49Speaker 4: like that's something that was happening under Democrats and Republicans,
- 35:52Speaker 4: and it's gotten complicated. And when Obama is president, a
- 35:55Speaker 4: bunch of Democrats are defending certain things that now we
- 35:57Speaker 4: would not defend, and Republicans are doing the same in
- 35:59Speaker 4: Republican administrations. But this is as basic and core to
- 36:02Speaker 4: the Constitution as it gets. If the president can decide
- 36:06Speaker 4: what to spend or not to spend based on what
- 36:08Speaker 4: Congress has passed, the Congress is no longer determining how
- 36:11Speaker 4: the money is spent, the president is. That is one
- 36:14Speaker 4: of the core dangers. That is one of the core
- 36:16Speaker 4: reasons we have a constitution. And I agree with you.
- 36:19Speaker 4: Like my concern too, is that they're going to obliterate,
- 36:21Speaker 4: that they're going to bash through a court ruling at
- 36:24Speaker 4: some point. I think the question is like, how long
- 36:25Speaker 4: do we hold that off?
- 36:26Speaker 7: Right?
- 36:27Speaker 4: Four years ago, what Elon Musk is doing, impossible to imagine.
- 36:29Speaker 3: Eight years ago, impossible to imagine. Four years from now,
- 36:32Speaker 3: I have no idea.
- 36:34Speaker 1: And it's also important that like, this isn't just about,
- 36:36Speaker 1: you know, norms and institutions and theories of government and,
- 36:40Speaker 1: and all that, which is our incredible dangerous threats to this,
- 36:43Speaker 1: to the system of democracy. But like, this is just
- 36:45Speaker 1: causing needless suffering and death because again, if they, and
- 36:50Speaker 1: you know what they're going to do is they're going to,
- 36:52Speaker 1: I'm sure come out with, you know, programs and spending
- 36:56Speaker 1: at USA ID that seem ridiculous or wasteful.
- 36:58Speaker 2: Again, there's probably plenty of that, right?
- 37:02Speaker 1: And no one is saying we shouldn't go through the
- 37:04Speaker 1: federal budget and go through the federal government. and eliminate
- 37:07Speaker 1: wasteful spending and try to find more efficiencies. But pausing
- 37:12Speaker 1: it the way they did, cutting it off immediately, like people, children,
- 37:16Speaker 1: a lot of children are going to die because they
- 37:19Speaker 1: can't get the medication they need in other countries.
- 37:22Speaker 2: For what? For nothing.
- 37:23Speaker 1: We're not going to save money for this. This is,
- 37:24Speaker 1: you heard from Brittany, this is money that was already
- 37:26Speaker 1: out the door. This isn't new money. So no one's saving.
- 37:29Speaker 1: This is just, you know, there's, I think there was guards,
- 37:31Speaker 1: prison guards that were guarding ISIS prisoners that just had
- 37:35Speaker 1: to walk off the job.
- 37:36Speaker 5: They didn't know if they should show up for work,
- 37:38Speaker 5: so some of them didn't.
- 37:39Speaker 1: There's USAID people in dangerous areas around the world that
- 37:43Speaker 1: now can't get access to help if they need it.
- 37:47Speaker 1: All kinds of health programs we're funding around the world
- 37:50Speaker 1: that are just going to lead to more suffering and death.
- 37:52Speaker 2: I mean, it's fucking ridiculous. It's inexcusable.
- 37:55Speaker 5: I also think there's this lack of clarity now about
- 37:57Speaker 5: whether some parts of USAID funding has been unfrozen or
- 38:01Speaker 5: Rubio said that, Secretary Rubio said that life-saving assistance like medicine,
- 38:06Speaker 5: medical service, food and shelter would be exempted from the
- 38:08Speaker 5: aid freeze, but no one really knows what that means.
- 38:11Speaker 5: And I think that's kind of the point because this
- 38:14Speaker 5: uncertainty has just upended everything USAID is doing. And I think, honestly,
- 38:20Speaker 5: I think talking about this as a freeze is probably
- 38:21Speaker 5: a mistake. I have zero confidence that the vast majority
- 38:25Speaker 5: of this funding or these programs will be turned back on.
- 38:28Speaker 5: And I think that by the way, Rubio used to
- 38:32Speaker 5: be a big defender of USAID funding. He said it
- 38:34Speaker 5: was critical for our national security. Now he's totally flip-flopped.
- 38:37Speaker 5: But let's just say that something you're working on is
- 38:40Speaker 5: paused for 90 days. If you're a contractor working for
- 38:42Speaker 5: USAID in Kenya or Ukraine or Southeast Asia, you don't
- 38:46Speaker 5: have 90 days worth of savings to just sit on
- 38:49Speaker 5: to see if your job is around in three months.
- 38:52Speaker 5: You're going to go do something else. And it's going
- 38:54Speaker 5: to completely cripple all this work that It's taken decades
- 38:59Speaker 5: to set up this infrastructure, these contractors, these networks of
- 39:02Speaker 5: people in these countries. And to your point, I mean,
- 39:04Speaker 5: if you're getting antiretrovirals through PEPFAR and you stop, you're
- 39:09Speaker 5: going to die.
- 39:11Speaker 2: That's just how it is.
- 39:12Speaker 1: And I get the domestic politics on all this. I
- 39:15Speaker 1: get that no one likes foreign aid. Most Americans don't
- 39:19Speaker 1: like foreign aid. And you tell people it's like 0.7%
- 39:22Speaker 1: of the whole budget and that still doesn't matter.
- 39:24Speaker 5: Well, they think it's 10% is the big problem.
- 39:25Speaker 2: Yeah, that is a big problem. But I do think
- 39:27Speaker 2: if you.
- 39:28Speaker 1: I think for most Americans, you tell them hey, this
- 39:31Speaker 1: kid showed up at a clinic today like they have
- 39:34Speaker 1: every day for, you know, once a month to go
- 39:35Speaker 1: get some medicine and now it shut down and now
- 39:38Speaker 1: this kid could die.
- 39:40Speaker 2: Like for what? For what purpose? So that Elon can
- 39:43Speaker 2: post about like vile communists, Marxists?
- 39:46Speaker 4: It's, there's a, there's like a, a way in which
- 39:50Speaker 4: their kind of base incompetence and then their kind of
- 39:54Speaker 4: like viciousness work together here, which is they didn't know
- 39:58Speaker 4: or care very much about what USAID did. They didn't
- 40:01Speaker 4: care very much or know very much about what PEPFAR
- 40:03Speaker 4: did before. They have an ideological set of assumptions about
- 40:06Speaker 4: nonprofit work, about foreign aid, that it's all bullshit, right?
- 40:10Speaker 3: They've like internalized a bunch of that.
- 40:12Speaker 1: I wonder if Elon Musk knew that USAID played such
- 40:15Speaker 1: a big role in fighting apartheid in South Africa.
- 40:19Speaker 4: Well, I mean, but, but, but the only, the only,
- 40:21Speaker 4: just the point that I'm only making is that like
- 40:22Speaker 4: the way in which these things work together is they're
- 40:24Speaker 4: so fucking careless. They're so, and like, they're just careless people.
- 40:29Speaker 4: It's so, it's a, it's a glib carelessness that is
- 40:32Speaker 4: just like, it's beneath contempt and the stakes are so high.
- 40:36Speaker 4: We're just, yes, there are many ideological kind of warriors,
- 40:41Speaker 4: but a lot of the people at the top of
- 40:42Speaker 4: this are just capricious glib fools that don't, understand that
- 40:47Speaker 4: they just don't care that they're playing with matches.
- 40:50Speaker 5: But in some instances, it's worse than that. They are
- 40:54Speaker 5: folding this into their preconceived ideological anger, and they've decided
- 40:58Speaker 5: that USAID funded programs that led to gain-of-function research that
- 41:05Speaker 5: led to COVID. You know, this is all kind of
- 41:07Speaker 5: getting folded into, like, prosecute Fauci madness. And it's like,
- 41:12Speaker 5: you know, Elon Musk retweeting at wall street apes, which
- 41:16Speaker 5: is his source on someone found some 40 million in
- 41:20Speaker 5: taxpayer funding that went to some scientists in Wuhan. And
- 41:22Speaker 5: it's just like, I don't know, apparently this is all
- 41:25Speaker 5: just part of a conspiracy theory about how, uh, the
- 41:28Speaker 5: lab leak, uh, was on purpose from, you know, thanks
- 41:31Speaker 5: to Fauci's funding from USA ID, I guess that's the
- 41:35Speaker 5: new theory of the case here.
- 41:36Speaker 1: And again, you have the richest man in the world
- 41:39Speaker 1: with one of the biggest platforms, now one of the
- 41:42Speaker 1: most powerful people in government, just accusing entire organizations of
- 41:46Speaker 1: being criminal enterprises. And you can see the slippery slope, right?
- 41:50Speaker 1: Like you can see where now, you know, Pam Bondi
- 41:53Speaker 1: and Kash Patel get in there and they start processing, well,
- 41:55Speaker 1: this is criminal activity.
- 41:56Speaker 2: We're going to investigate it. Like this is how it goes.
- 42:00Speaker 1: Unless anyone thinks this is just about foreign aid, the
- 42:02Speaker 1: Trump administration also pushed out the head of the Consumer
- 42:05Speaker 1: Financial Protection Bureau. Rohit Chopra and ordered the agency to
- 42:09Speaker 1: stop all investigations and enforcement actions against banks and payday
- 42:14Speaker 1: lenders and credit card companies. They have saved just consumers
- 42:18Speaker 1: billions and billions and billions of dollars in refunds. And
- 42:22Speaker 1: they've got consumers. It's a great agency.
- 42:26Speaker 4: There is no simpler like the delta between what Republicans
- 42:29Speaker 4: claim that CFPB is and what CFPB is. That is
- 42:32Speaker 4: one of the biggest and starkest gaps in in politics
- 42:35Speaker 4: is an agency that has such a singular, simple purpose,
- 42:38Speaker 4: which is to go after big corporations that are defrauding
- 42:42Speaker 4: and fucking over consumers and getting them money back. It
- 42:45Speaker 4: is being punished because it, well, it's being punished in
- 42:47Speaker 4: part because it was originally Elizabeth Warren's idea. That's its
- 42:50Speaker 4: original sin, but it is so fucking effective. It is
- 42:53Speaker 4: such good government. They, they, they put, they put Mick
- 42:56Speaker 4: Mulvaney in there the first term to try to destroy it. Uh,
- 42:59Speaker 4: Biden was able to put in Rohit who did an
- 43:01Speaker 4: amazing job and now they're going to try to destroy
- 43:03Speaker 4: it again.
- 43:04Speaker 5: Yeah.
- 43:04Speaker 1: And as Tommy mentioned, Wall Street Journal reports, and now
- 43:07Speaker 1: the Washington Post, that Trump and Elon are preparing an
- 43:10Speaker 1: executive order to try to shut down the entire Department
- 43:13Speaker 1: of Education. This was the campaign promise from Trump. They
- 43:16Speaker 1: acknowledge in the order that they can't shut the entire
- 43:19Speaker 1: thing down by executive order. They want to go to
- 43:21Speaker 1: Congress to do it, but they want to move some
- 43:23Speaker 1: of the functions out of the Department of Education. Of course,
- 43:26Speaker 1: you know, most schools are funded by local and state taxes. But,
- 43:30Speaker 1: you know, for poor schools, get a lot of Title
- 43:32Speaker 1: I funding from the Department of Education. All of student
- 43:35Speaker 1: financial aid, the federal financial aid program is run out
- 43:38Speaker 1: of the Department of Education. Students with disabilities are funded
- 43:41Speaker 1: through the Department of Education. It goes on and on
- 43:43Speaker 1: and on. The New York Times reports that more than 8,000
- 43:47Speaker 1: federal government webpages have been taken down, including thousands of
- 43:50Speaker 1: research papers that were available on the CDC website, informational
- 43:54Speaker 1: IRS videos about how to avoid tax penalties, and the
- 43:57Speaker 1: state-level hate crimes data on the Justice Department website. Speaking
- 44:00Speaker 1: of which, there is an ongoing purge at the DOJ
- 44:03Speaker 1: and FBI. Trump is firing any prosecutors or FBI agents
- 44:07Speaker 1: that had anything to do with any of the criminal
- 44:09Speaker 1: investigations that led to his indictments.
- 44:11Speaker 4: Well, in fairness, that's because they were also incredibly ineffective.
- 44:15Speaker 4: Got to get some good prosecutors in that can get
- 44:17Speaker 4: a fucking conviction and get them in jail.
- 44:19Speaker 1: At the FBI, employees were given until 3 p.m. Eastern
- 44:22Speaker 1: time on Monday to fill out a questionnaire about whether
- 44:25Speaker 1: they were involved in any way In investigations into January 6th.
- 44:30Speaker 3: That's such a funny trap to set for prosecutors.
- 44:33Speaker 5: Should I fire you?
- 44:34Speaker 2: Y or N?
- 44:35Speaker 1: The FBI has estimated that the number of people who
- 44:37Speaker 1: were agents and staff could be about 6,000. This comes
- 44:42Speaker 1: after DOJ fired about 12 prosecutors in D.C. who had
- 44:45Speaker 1: been brought on to investigate January 6th cases.
- 44:48Speaker 5: And most of those 6,000 are so tangential. So people
- 44:51Speaker 5: who got random leads who pass along information or were
- 44:54Speaker 5: part of a wiretap or God knows what.
- 44:56Speaker 1: And by the way, that's the real concern is that
- 44:59Speaker 1: so many of these people are like career officials who've
- 45:02Speaker 1: been at DOJ or the FBI for a decade. Some
- 45:05Speaker 1: of them are very senior people with like counterintelligence experience
- 45:09Speaker 1: and they're going after national security threats and they've been
- 45:12Speaker 1: working on all these cases and now they're just going
- 45:14Speaker 1: to be gone.
- 45:14Speaker 5: Or they were just assigned a case and you don't
- 45:17Speaker 5: have a choice.
- 45:17Speaker 4: There are seasoned prosecutors who have no reason to be fired.
- 45:24Speaker 4: And it's not as though America is short on white-collar
- 45:26Speaker 4: crimes to prosecute. So it's fucking terrible.
- 45:29Speaker 2: So, I mean, you talked about the unitary executive theory. J.D.
- 45:33Speaker 1: Vance tweeted today, look, unelected bureaucrats should not be resisting
- 45:41Speaker 1: the president of the United States. They work for him.
- 45:43Speaker 1: He gets to staff his government with who he wants.
- 45:46Speaker 1: And then he is answerable to the people. So the
- 45:48Speaker 1: people elected Trump and Trump gets to have the entire
- 45:51Speaker 1: government he wants.
- 45:52Speaker 2: So everyone else should just shut the fuck up basically. Um,
- 45:55Speaker 2: why is that wrong?
- 45:56Speaker 4: You know, I was thinking about this earlier, which is this,
- 45:58Speaker 4: that we are watching these guys make these kinds of
- 46:02Speaker 4: simple arguments against these like hard one institutional, uh, protections, right?
- 46:09Speaker 4: Some of which are imposed by Congress. Some are just
- 46:12Speaker 4: norms that evolved over decades, if not centuries. And a
- 46:15Speaker 4: lot of those norms, institutions, processes that are designed to
- 46:20Speaker 4: constrain the executive were put in place in the kind
- 46:24Speaker 4: of like long before the internet. And they were put
- 46:27Speaker 4: in place when you had a kind of like elite
- 46:31Speaker 4: bipartisan set of actors that didn't feel like they had
- 46:37Speaker 4: that kind of established this order long ago. And it's
- 46:41Speaker 4: sort of been in place in a way that was
- 46:43Speaker 4: like never really defended, right? We took no one really
- 46:45Speaker 4: making the argument for why the DOJ is separate from
- 46:49Speaker 4: the presidency and why that's a good idea and why
- 46:51Speaker 4: that's important. There's no real, there hasn't been a real
- 46:54Speaker 4: kind of, I don't know, like legal, broad-based kind of
- 46:58Speaker 4: public legal argument against originalism and like kind of the
- 47:01Speaker 4: values of what we've learned about constitutional governance over the
- 47:04Speaker 4: last 200 years. But what we do have is just
- 47:08Speaker 4: example after example after example of why we put these
- 47:12Speaker 4: restrictions in place. And they were meant to stop presidents
- 47:15Speaker 4: from abusing power. The reason we have bureaucrats who are
- 47:18Speaker 4: not accountable to the president and can't be fired by
- 47:21Speaker 4: the president is because of the spoil system. And because
- 47:22Speaker 4: when the government was filled with cronies, it didn't fucking
- 47:24Speaker 4: work and it was a corrupt bargain.
- 47:26Speaker 3: Why is the.
- 47:26Speaker 4: DOJ separate from the White House? Because the presidency is
- 47:29Speaker 4: too powerful. And when the DOJ isn't separate from the
- 47:31Speaker 4: White House, it means the president is not accountable to law.
- 47:35Speaker 4: There's an answer to every one of these questions. But
- 47:38Speaker 4: It's like they're relying on the fact that we're fighting
- 47:41Speaker 4: these guys on every fucking front, and they can just
- 47:43Speaker 4: spout off and make these sort of claims to the
- 47:45Speaker 4: power of the people.
- 47:46Speaker 3: Well, we're left kind of falling behind. Well, actually, there's
- 47:48Speaker 3: a good reason. RFK was actually an attorney general.
- 47:52Speaker 5: I'm so sick of this, this is what people voted
- 47:54Speaker 5: for line. No, no one voted to give Elon Musk
- 47:58Speaker 5: a line item veto for the entire federal government. Voting
- 48:02Speaker 5: for Donald Trump doesn't mean we get rid of basic
- 48:04Speaker 5: civil service protections for government employees. Those are in place.
- 48:08Speaker 5: to ensure merit-based employment, to ensure that political influence isn't
- 48:12Speaker 5: dictating every single person who is hired or fired, that
- 48:16Speaker 5: there isn't discrimination or arbitrary actions. They have collective bargaining rights.
- 48:20Speaker 5: There's whistleblower protections. There's all sorts of workers' rights that
- 48:24Speaker 5: don't go away because Donald Trump gets elected president.
- 48:28Speaker 1: I do think that, you know, people don't necessarily love bureaucrats.
- 48:32Speaker 1: Even the name has a connotation that's not too positive.
- 48:35Speaker 1: And I don't think Even during the campaign, we didn't
- 48:39Speaker 1: want to talk a lot about Schedule F and how
- 48:41Speaker 1: we wanted to replace all of the government workers with
- 48:43Speaker 1: loyalists because we knew that.
- 48:45Speaker 2: Wouldn't really pop in the polls.
- 48:48Speaker 1: And I think that as he's doing all this, those
- 48:51Speaker 1: of us who are paying attention are rightly freaked out.
- 48:54Speaker 1: I think what's going to have to happen is adverse
- 48:56Speaker 1: consequences from having a government completely gutted and really good
- 49:01Speaker 1: professional people who've been there forever and not there. And
- 49:04Speaker 1: when something happens... It's going to have to be like, well,
- 49:07Speaker 1: Donald Trump, it's your government. You and J.D. Vance said
- 49:09Speaker 1: it's your people. You get to pick who you want.
- 49:10Speaker 1: You're running the whole thing. You don't have the deep
- 49:12Speaker 1: state to blame anymore. So it's your fucking fault.
- 49:14Speaker 3: Yeah, they have to.
- 49:15Speaker 6: I don't know.
- 49:15Speaker 2: I don't know what else.
- 49:16Speaker 4: To, yeah, there's just, um, there's just like, I don't
- 49:21Speaker 4: know what the equity is and just a defense of
- 49:23Speaker 4: the annoying, difficult, hard work of like democratic governance. And like,
- 49:28Speaker 4: you know, I think about like just the prospect of
- 49:31Speaker 4: the trade war and it's like, it's not good TV, right?
- 49:34Speaker 3: Like the difficult work.
- 49:37Speaker 4: Of diplomacy behind the scenes to gain contentions without threatening
- 49:40Speaker 4: your partners and without creating a scandal.
- 49:42Speaker 3: It's just not good TV.
- 49:44Speaker 1: You're not sticking around for the readout of the bilat?
- 49:47Speaker 4: Right. What Trump figured out is that democracy isn't good TV.
- 49:52Speaker 4: It's incumbent on us to figure out how to make
- 49:55Speaker 4: it more like good TV.
- 49:57Speaker 3: But it's hard.
- 49:58Speaker 2: It's hard. Maybe next Democrat should try to take over Greenland,
- 50:02Speaker 2: you know?
- 50:11Speaker 1: Pod Save America is brought to you by ZipRecruiter. According
- 50:13Speaker 1: to research, a major challenge that many employers face is
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- 51:00Speaker 1: We love ZipRecruiter. We've used it at Crooked for years now.
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- 51:26Speaker 3: Oh, that's nice.
- 51:27Speaker 1: Again, that's ZipRecruiter.com slash Crooked. ZipRecruiter is the smartest way
- 51:31Speaker 1: to hire. Speaking of Trump getting to do whatever he wants,
- 51:39Speaker 1: one more Mad King move I want to talk about
- 51:41Speaker 1: here that just drove me crazy. So Trump apparently ordered
- 51:45Speaker 1: the Army Corps of Engineers... To begin releasing water from
- 51:48Speaker 1: two reservoirs in California's Central Valley because he mistakenly believes
- 51:53Speaker 1: the water from the Central Valley will flow three hours
- 51:57Speaker 1: south to Los Angeles.
- 51:59Speaker 3: I think people, I think people, because south is down.
- 52:02Speaker 5: Yeah.
- 52:02Speaker 3: I think it's because south is fucking down.
- 52:05Speaker 1: I guess, I guess what's supposed to, you're supposed to
- 52:07Speaker 1: release the water from the reservoirs up there and then
- 52:09Speaker 1: it'll flow right into the hydrants in the Palisades.
- 52:12Speaker 2: Right. That's how it's going to happen.
- 52:13Speaker 3: Is the word valley doing nothing for him?
- 52:16Speaker 1: So he mistakenly believes it will flow down here to
- 52:18Speaker 1: Los Angeles, helping us put out fires that are now
- 52:20Speaker 1: 100% contained in advance of an atmospheric river event that's
- 52:25Speaker 1: predicted to dump 10 feet of snow and up to
- 52:27Speaker 1: 20 inches of rain in the area this week of
- 52:30Speaker 1: the Central Valley, where he just dumped out all that water.
- 52:33Speaker 1: According to the Washington Post, Trump released enough water to
- 52:35Speaker 1: supply as many as 7,000 households for a year. And
- 52:40Speaker 1: now that water won't be available to Central Valley farmers
- 52:43Speaker 1: who really need it to irrigate the fields. later this year.
- 52:47Speaker 1: Trump talked about this, quote, long fought victory at the
- 52:50Speaker 1: White House on Monday.
- 52:51Speaker 2: Let's listen.
- 52:52Speaker 9: All we're doing is giving Los Angeles and the entire
- 52:55Speaker 9: state of California virtually unlimited water, which they could have
- 52:59Speaker 9: done five years ago, which I told them they should do.
- 53:03Speaker 9: But the environmentalists stopped them and we opened it and
- 53:06Speaker 9: we did it regardless of the state. And now the
- 53:11Speaker 9: state seems to be very happy. I spoke with Gavin Newsom, Newsom,
- 53:15Speaker 9: and he's very happy. I almost called him by the
- 53:19Speaker 9: other name.
- 53:21Speaker 2: My little nickname for him. He stopped it.
- 53:23Speaker 3: He's being very presidential this morning.
- 53:25Speaker 1: I'm just going to go out on a limb here
- 53:27Speaker 1: and say that I don't think Gavin Newsom was probably
- 53:29Speaker 1: too happy about this.
- 53:30Speaker 2: It's so stupid. What the fuck, guys?
- 53:33Speaker 4: He makes up a problem, and he solves a problem.
- 53:35Speaker 4: We're going to be living with that over and over again,
- 53:37Speaker 4: but he doesn't.
- 53:38Speaker 3: Care about the.
- 53:39Speaker 4: Apparently, was it Padilla who was saying that he wanted
- 53:42Speaker 4: to open it up even further... in a way that
- 53:44Speaker 4: was extremely dangerous.
- 53:46Speaker 2: Yeah, no, he wanted them to release a ton.
- 53:49Speaker 1: They only gave the local officials hours notice. Usually when
- 53:53Speaker 1: you do releases like that, you prepare with local officials
- 53:56Speaker 1: and farmers and everyone else for many days to make
- 53:57Speaker 1: sure there's no flooding. So they almost had to just
- 54:00Speaker 1: open it up and cause a whole bunch of flooding.
- 54:02Speaker 1: And then finally, last minute, they were like, can we
- 54:03Speaker 1: just do a little less, sir? Because this is just
- 54:07Speaker 1: for your.
- 54:08Speaker 2: Fucking addled mind about water has nothing to do with anything.
- 54:11Speaker 4: It's very Stalin being like, we'll double the wheat if
- 54:14Speaker 4: we plant all the wheat much closer together.
- 54:17Speaker 2: You know?
- 54:18Speaker 1: It's just so fucking dumb.
- 54:22Speaker 2: So fucking dumb.
- 54:22Speaker 3: Yeah.
- 54:24Speaker 1: So the question again becomes, what are the Democrats up to?
- 54:30Speaker 1: The good news is we're getting some signs of life
- 54:32Speaker 1: from the opposition party. Democrats elected a new DNC chair
- 54:35Speaker 1: over the weekend. We, of course, were supporting Ben Wickler,
- 54:38Speaker 1: but a big congrats to Ken Martin. who we also
- 54:40Speaker 1: interviewed and are very much rooting for.
- 54:42Speaker 3: He's my enemy.
- 54:43Speaker 2: He's John's enemy.
- 54:45Speaker 1: On Monday, House Minority Leader Hakeem Jeffries laid out a
- 54:47Speaker 1: 10-part plan to fight back against Trump that includes using
- 54:50Speaker 1: the March deadline to fund the government and lift the
- 54:53Speaker 1: debt ceiling as leverage.
- 54:54Speaker 2: Stay tuned for that.
- 54:56Speaker 1: Our pal Brian Schatz, Senator from Hawaii, says that he's
- 54:59Speaker 1: placing a hold on all of Trump's State Department nominees
- 55:02Speaker 1: until USAID is open and functioning again.
- 55:04Speaker 4: And.
- 55:06Speaker 1: Just a ton of congressional Democrats actually held a press
- 55:09Speaker 1: conference outside USAID after trying to enter the building themselves.
- 55:13Speaker 2: Spoiler alert, they were not allowed in.
- 55:16Speaker 3: Our sweet little insurrectionists. Oh, look at you guys doing
- 55:20Speaker 3: your little insurrection. So sweet. Sweet little Democrats. Knock, knock, knock.
- 55:25Speaker 2: What do you guys think?
- 55:26Speaker 1: Democrats doing enough? Are they making the right moves? What
- 55:29Speaker 1: else could they be doing? What's our latest feeling on this?
- 55:34Speaker 5: Uh, I didn't love the USAID press conference setting. The
- 55:37Speaker 5: reason being, as we just discussed, the Republicans are about
- 55:40Speaker 5: to find a bunch of examples of USAID programs that
- 55:42Speaker 5: seem silly even to us, uh, or seem like a
- 55:45Speaker 5: bad use of money. And if the shorthand is Democrats
- 55:49Speaker 5: defend USAID while the White House bully pulpit and Elon's
- 55:53Speaker 5: Twitter amplifies all these bad things about USAID, I don't
- 55:56Speaker 5: think that's a winner. I think I want them to
- 55:59Speaker 5: focus in on the Elon piece of this right now,
- 56:01Speaker 5: because I do think like, It's genuinely scary. He's a
- 56:05Speaker 5: nefarious new element to Trump 2.0 that is newsworthy, and
- 56:09Speaker 5: he's a shiny object right now, and reporters want to
- 56:11Speaker 5: cover it, and everyone knows who he is and want
- 56:13Speaker 5: to know what's going on. And there's been some recent
- 56:15Speaker 5: polling that shows that Elon's favorable ratings are underwater. Something
- 56:19Speaker 5: comes on cases by like 16 points. And I think
- 56:22Speaker 5: Democrats should drive a wedge in between Elon and Trump
- 56:25Speaker 5: and drive both their unfavorables up by talking about why
- 56:29Speaker 5: an unelected billionaire... It's just kind of combing through the
- 56:32Speaker 5: government books and doing whatever the hell he wants. Like
- 56:35Speaker 5: that is a weird, crazy, interesting story that no one
- 56:38Speaker 5: is going to like. And I think it'll get covered.
- 56:40Speaker 5: And like, I'm good for Brian shots for blocking all
- 56:42Speaker 5: these state department employee nominations. I think that's great. Hakeem
- 56:46Speaker 5: Jeffrey's 10 point plan has good stuff in there. I
- 56:49Speaker 5: read through it all, but I learned about it when
- 56:51Speaker 5: I read the outline for this episode. So I don't
- 56:52Speaker 5: know that it's broken through. Um, I know a lot
- 56:55Speaker 5: of it is like planning for down the road. But, uh,
- 56:58Speaker 5: I don't know. I would focus on the Elon piece
- 56:59Speaker 5: right now and just go, go hard.
- 57:02Speaker 4: So Bernie Sanders put out a video over the weekend
- 57:06Speaker 4: that I really liked. It was everything you want out of, uh,
- 57:10Speaker 4: Bernie Sanders. And I think like speaks to his sort
- 57:12Speaker 4: of moral leadership. He just, it's just a camera. It's like,
- 57:15Speaker 4: this is a very dangerous time. There are three things
- 57:17Speaker 4: we got to do. One, we got to accurately describe
- 57:19Speaker 4: what's happening. Two, we need to find the short term.
- 57:20Speaker 4: And three, we need to find the long term. And
- 57:22Speaker 4: in the short term, I think he was talking about
- 57:23Speaker 4: what Tommy was talking about, uh, I think there's, and
- 57:27Speaker 4: the importance of fighting Trump wherever we can. Ezra Klein
- 57:31Speaker 4: made this point about sort of also just not taking
- 57:35Speaker 4: Trump at his, at his word, right? Like when he
- 57:37Speaker 4: claims certain authorities, we shouldn't concede to it.
- 57:40Speaker 3: Trump today.
- 57:40Speaker 2: He's trying to be scary and powerful.
- 57:42Speaker 11: Yeah.
- 57:43Speaker 2: That's what he wants. He wants everyone to see him as.
- 57:44Speaker 5: A strong man.
- 57:45Speaker 3: Trump today announced a sovereign wealth fund. He can't do that.
- 57:47Speaker 4: He does not have the authority to create a sovereign
- 57:49Speaker 4: wealth fund and we shouldn't lend him, we shouldn't do
- 57:52Speaker 4: what we're afraid, what, what, legacy media companies are doing
- 57:55Speaker 4: or what judges might be doing, which is because we
- 57:58Speaker 4: assume Trump will break the rules to not uphold the rules, right?
- 58:01Speaker 5: We should just uphold the rules.
- 58:03Speaker 4: And then three, what Bernie talked about was building this
- 58:09Speaker 4: long-term political power and making an argument for a positive vision.
- 58:13Speaker 4: And look, I don't think it's revelatory, but just the
- 58:16Speaker 4: kind of clean, simple, to the point, direct way he
- 58:19Speaker 4: talked about it, how serious this moment is, how dangerous
- 58:21Speaker 4: it is, without high dudgeons. without kind of theatrics, but
- 58:25Speaker 4: just to camera explaining it, I thought was really powerful. I,
- 58:32Speaker 4: along with you guys, have yelled about Democrats needing to
- 58:35Speaker 4: do more on this very show.
- 58:38Speaker 2: Still think we haven't quite found our footing just yet.
- 58:40Speaker 1: But I do think just seeing a lot of people
- 58:44Speaker 1: on Twitter and Blue Sky, gotta check the skeets too
- 58:47Speaker 1: these days.
- 58:49Speaker 5: I do not.
- 58:49Speaker 1: Over the weekend, there was a lot of anger at
- 58:54Speaker 1: the elected Democrats. And I just, I think we should
- 58:57Speaker 1: level set on what, how much power Democrats have right now,
- 59:00Speaker 1: which is almost none. And that is just a consequence
- 59:04Speaker 1: of the election. And we probably have less power now
- 59:06Speaker 1: as a party than we have anytime I can remember. Uh,
- 59:10Speaker 1: because Trump's got the courts, he's got the executive branch,
- 59:14Speaker 1: he's got billionaires all around them.
- 59:15Speaker 2: They all own media platforms.
- 59:17Speaker 1: Like they have, they got Congress, they have a lot
- 59:19Speaker 1: of power and Democrats can yell and scream. And, you know, Tommy,
- 59:25Speaker 1: I had the same thought about the USA ID press conference.
- 59:28Speaker 1: because of the politics. But then I started thinking to myself,
- 59:31Speaker 1: you know what? We told them to go fight. They're
- 59:33Speaker 1: out there fighting. An election's not in a couple months.
- 59:38Speaker 1: Let them do it for today. They'll get used to it,
- 59:40Speaker 1: and then maybe they'll go to the Department of Education next.
- 59:42Speaker 1: Maybe they'll go to the Consumer Financial Protection Bureau next,
- 59:45Speaker 1: and they'll find more politically popular things to yell about.
- 59:48Speaker 1: But I'm glad to see them do it. And, you know,
- 59:52Speaker 1: Schatz is going to hold up these nominees today. But
- 59:55Speaker 1: everyone should realize with that too, like that's going to
- 59:57Speaker 1: eat up a lot of floor time and it's going
- 59:59Speaker 1: to slow things down, which is great. But John Thune
- 1:00:02Speaker 1: is going to be able to get those nominees through.
- 1:00:04Speaker 1: Like Democrats don't have the power. We have the power
- 1:00:07Speaker 1: to slow things down in Congress. We don't have the
- 1:00:09Speaker 1: power to stop a lot of things. We just don't.
- 1:00:11Speaker 1: And I think everyone should realize that. And, you know,
- 1:00:14Speaker 1: as we criticize Democrats rightly for a lame tweet here
- 1:00:20Speaker 1: or a lame speech there or whatever else, We should
- 1:00:22Speaker 1: just know that, you know, everyone should be suing the
- 1:00:24Speaker 1: Trump administration on everything. The Democratic AG should be out there.
- 1:00:27Speaker 1: We should take him to court on everything. That's a
- 1:00:29Speaker 1: lever that we can pull. We can do everything. I
- 1:00:31Speaker 1: do think like we're going to have some leverage on
- 1:00:35Speaker 1: funding and the debt ceiling because Mike Johnson is going
- 1:00:38Speaker 1: to need Democratic votes on those things. They're not going
- 1:00:40Speaker 1: to be able to get Chip Roy and all the
- 1:00:42Speaker 1: Republicans to get together and vote to raise the debt
- 1:00:44Speaker 1: ceiling and vote to this. So like that is a
- 1:00:46Speaker 1: choke point for us. But there's not a lot more.
- 1:00:49Speaker 1: There's just not a lot more. We have to win
- 1:00:51Speaker 1: elections again, guys.
- 1:00:52Speaker 4: Yeah, the part that I'm questioning, that I find myself
- 1:00:55Speaker 4: feeling unsure about, is don't get distracted by USAID. We've
- 1:01:02Speaker 4: got to talk about the impact of terrorists. And don't
- 1:01:04Speaker 4: get distracted by the impact of terrorists. We've got to
- 1:01:06Speaker 4: talk about the oligarchs. And don't talk about the oligarchs.
- 1:01:08Speaker 4: We've got to talk about the price of eggs.
- 1:01:10Speaker 3: And then I turn on.
- 1:01:15Speaker 4: The television, and there's Trump every day for a couple
- 1:01:17Speaker 4: hours a day, just hitting whatever he's going to hit.
- 1:01:20Speaker 2: Just talking about it all.
- 1:01:21Speaker 3: Talking about it all.
- 1:01:22Speaker 4: And, you know, Trump declared that he was going to
- 1:01:25Speaker 4: create a sovereign wealth fund, I mentioned, right?
- 1:01:27Speaker 3: It is not, it's barely news. It's barely news. It's
- 1:01:30Speaker 3: a big fucking deal. It's a big deal that the
- 1:01:32Speaker 3: Trump is- It's.
- 1:01:33Speaker 5: Not a bad idea.
- 1:01:33Speaker 4: Well, I think it's a bad idea to have Trump
- 1:01:38Speaker 4: basically create a kind of an administrative-led investment vehicle.
- 1:01:42Speaker 5: I don't want him to have a slush fund, but
- 1:01:44Speaker 5: for the United States having a sovereign wealth fund, it's
- 1:01:47Speaker 5: a conversation worth having.
- 1:01:48Speaker 2: How else are we going to buy our Chinese spyware out?
- 1:01:50Speaker 2: That's right.
- 1:01:51Speaker 4: Well, I don't, listen, I would rather put the money
- 1:01:54Speaker 4: back in the hands of the American people, but that's
- 1:01:55Speaker 4: just me. But the, but, but like all, all its
- 1:01:58Speaker 4: way of saying like, maybe, maybe even that is kind
- 1:02:00Speaker 4: of overthinking at this point and like fight everything everywhere.
- 1:02:02Speaker 5: Right.
- 1:02:02Speaker 3: You want to fight USA day, fight USA day.
- 1:02:04Speaker 2: Take some reps.
- 1:02:05Speaker 4: Yeah.
- 1:02:05Speaker 1: Just get out there and get out there and take
- 1:02:07Speaker 1: some reps. And you know, I want them to show passion.
- 1:02:09Speaker 2: It was fake.
- 1:02:10Speaker 1: Cause like a lot of people were making fun of
- 1:02:11Speaker 1: Chuck Schumer. Cause he had this series of tweets over
- 1:02:13Speaker 1: the weekend where he was like, You're going to watch
- 1:02:15Speaker 1: the Super Bowl next weekend, and beer's going to be
- 1:02:17Speaker 1: more expensive. You're going to be trying to buy avocados,
- 1:02:21Speaker 1: and those are going to be more expensive. And those
- 1:02:22Speaker 1: were his tweets, and everyone's like, there's a fucking emergency.
- 1:02:25Speaker 1: Elon's breaking into USAID.
- 1:02:26Speaker 2: What are you doing? And I'm like, yeah, Chuck Schumer's
- 1:02:29Speaker 2: tweets are dumb.
- 1:02:31Speaker 5: There's an expectations management problem.
- 1:02:33Speaker 2: But if Chuck Schumer's tweets were amazing... What would that
- 1:02:36Speaker 2: have done?
- 1:02:36Speaker 4: Well, there's a funny moment where Schumer gave friends, he's like,
- 1:02:39Speaker 4: I've never seen people more aroused than they are right now.
- 1:02:41Speaker 3: And everyone's like, ah, no, he's saying they're aroused. It's like,
- 1:02:43Speaker 3: who cares? That's how Chuck Schumer talks. What's the difference?
- 1:02:45Speaker 1: We played that on Pod Save America. It was really funny.
- 1:02:47Speaker 5: Yeah, I don't... I think we can critique it.
- 1:02:49Speaker 2: We can make fun of that.
- 1:02:50Speaker 3: No, for sure. But it's just sort of like.
- 1:02:52Speaker 2: Arousal.
- 1:02:53Speaker 4: They're also not going to become different people. Chuck Schumer
- 1:02:55Speaker 4: is going to be a senior citizen Jewish New Yorker
- 1:02:58Speaker 4: out there talking about whatever he's going to talk about
- 1:02:59Speaker 4: the way he's been talking about it for 50 fucking years.
- 1:03:01Speaker 5: Look, we need them to... Look, they need to step up. Like...
- 1:03:04Speaker 5: good to do press conference today. They've been slow. There's
- 1:03:06Speaker 5: all these reports of like the Democrats, uh, the congressional
- 1:03:10Speaker 5: Democrats doing a conference call to figure out their response
- 1:03:12Speaker 5: as the news changes, right? It's the OPM memo gets rescinded, whatever.
- 1:03:16Speaker 5: It's like, be a little more nimble.
- 1:03:18Speaker 2: Yeah.
- 1:03:18Speaker 5: Take some shots. Don't worry about the, the words being perfect.
- 1:03:22Speaker 5: Make sure you try to get it to the people
- 1:03:23Speaker 5: who need to hear it. Maybe don't use the word aroused. Um,
- 1:03:27Speaker 5: maybe don't defend the most unpopular spending we do and
- 1:03:31Speaker 5: defense or the popular spending, but a look.
- 1:03:32Speaker 2: Yeah.
- 1:03:33Speaker 5: Points for fighting, I guess.
- 1:03:34Speaker 2: Yeah, I totally agree with all of that.
- 1:03:36Speaker 1: And I just want everyone to know, even if the
- 1:03:40Speaker 1: Democratic Party was perfect and fucking nailed it every single day,
- 1:03:44Speaker 1: there is a limit to what we can stop right
- 1:03:46Speaker 1: now because we fucking lost the election. And I say
- 1:03:52Speaker 1: this because people are like, oh, now Democrats are just
- 1:03:54Speaker 1: going to tell us to vote for them in 2026?
- 1:03:56Speaker 2: Yeah. Yeah, we are.
- 1:03:58Speaker 1: Because that's the only way to stop legislation from happening.
- 1:04:02Speaker 4: I took Twitter off my phone again. I think it
- 1:04:04Speaker 4: was good. I think it's good not to have that
- 1:04:06Speaker 4: on my phone.
- 1:04:07Speaker 5: Yeah.
- 1:04:08Speaker 2: You don't want to get into the skeets.
- 1:04:09Speaker 3: I'm not, I can't, I can't do it. I can't,
- 1:04:11Speaker 3: I can't take it anymore.
- 1:04:12Speaker 5: I do think everyone really needs to keep an eye
- 1:04:14Speaker 5: on these media lawsuit settlements with Trump.
- 1:04:17Speaker 6: Yes.
- 1:04:18Speaker 5: It's not just ABC and their defamation suit. It's not
- 1:04:21Speaker 5: just Facebook and their $ 25 million. You call it whatever
- 1:04:25Speaker 5: you want to Trump and to his library. There's reports
- 1:04:28Speaker 5: that CBS might settle. uh, suit that didn't even.
- 1:04:31Speaker 3: Involve Donald Trump.
- 1:04:32Speaker 5: The most ridiculous 60 minutes interview with Kamala Harris that
- 1:04:36Speaker 5: they edited. Like every news organization edits everything always, uh,
- 1:04:39Speaker 5: and Paramount might settle that. And by the way, they
- 1:04:42Speaker 5: happen to have a Paramount Skydance merger that's sitting before
- 1:04:45Speaker 5: the Trump administration, but suggesting that those things are connected
- 1:04:48Speaker 5: would be untoward. So I wouldn't do that.
- 1:04:50Speaker 1: And it's like Larry Ellison just in the, in the
- 1:04:52Speaker 1: literally in the old office, just for you.
- 1:04:55Speaker 5: So if we see the biggest media organizations in the country, uh,
- 1:05:00Speaker 5: and their corporate overlords preemptively caving to the Trump administration
- 1:05:05Speaker 5: and settling lawsuits. They could have won. That is a
- 1:05:08Speaker 5: very scary signal about press coverage and fighting for the
- 1:05:12Speaker 5: First Amendment right to cover the White House in the
- 1:05:15Speaker 5: second administration. And we need to keep an eye on that.
- 1:05:17Speaker 4: Well, it's like you talk about like, you know, we
- 1:05:19Speaker 4: need to be nimble. We need to be out there.
- 1:05:21Speaker 4: Who's going to hear?
- 1:05:22Speaker 3: Well, there's that.
- 1:05:23Speaker 4: But then it's also like journalists themselves are struggling to
- 1:05:26Speaker 4: cover all of this. And so now you have the
- 1:05:28Speaker 4: president of the United States who is lying and making
- 1:05:32Speaker 4: shit up and completely misconstruing his various policy proposals on
- 1:05:37Speaker 4: a daily basis. And if anybody covering him slips up
- 1:05:40Speaker 4: for even one fucking second, he's going to be the
- 1:05:42Speaker 4: president suing these people into oblivion while they're where they're
- 1:05:45Speaker 4: where their parent companies have business for the government.
- 1:05:47Speaker 3: It's terrifying.
- 1:05:48Speaker 7: Yeah.
- 1:05:49Speaker 1: The media point is really important also because sometimes I
- 1:05:52Speaker 1: feel like all of us are having, you know, there's
- 1:05:55Speaker 1: like a 500,000 of us that are all having a
- 1:05:57Speaker 1: conversation about strategy with each other. And then there's like
- 1:06:00Speaker 1: a country of 300 million people, most of whom are
- 1:06:03Speaker 1: who are paying attention and can barely get some of
- 1:06:06Speaker 1: this information from news sources that are now under intense pressure.
- 1:06:10Speaker 1: And so like one of the things we all have
- 1:06:12Speaker 1: to think about is not just making sure that our
- 1:06:14Speaker 1: other tweeters and other Democrats are saying the exact right message,
- 1:06:18Speaker 1: but like, you know, getting it out there to more people.
- 1:06:20Speaker 3: Got to put some kind of message at the bottom
- 1:06:21Speaker 3: of the Costco samples. Gotta get creative, people.
- 1:06:25Speaker 2: Which we can, and we can shop at Costco.
- 1:06:27Speaker 4: Yeah, we can still go to Costco. Gotta get messages
- 1:06:29Speaker 4: to those rotisserie chickens. Get the messages to the chickens.
- 1:06:33Speaker 5: Just like.
- 1:06:35Speaker 5: We've been dealing with this guy for a decade, and
- 1:06:37Speaker 5: Trump's like, we gave $ 50 million to Hamas for condoms,
- 1:06:42Speaker 5: and then they used the condoms as bums. It's completely
- 1:06:45Speaker 5: made up, because some dork over at Doge, she was
- 1:06:47Speaker 5: 19 years old, and has the Twitter handle BigBalls69420. misread
- 1:06:53Speaker 5: a spreadsheet and didn't realize this funding was going to
- 1:06:55Speaker 5: like Mozambique or something. And then the response though is
- 1:06:58Speaker 5: like factcheck.org has Trump administration makes unsupported claim about 50
- 1:07:02Speaker 5: million for condoms to Gaza. It's like, Oh my God.
- 1:07:05Speaker 2: And then we're done.
- 1:07:06Speaker 1: And then we're like, what's breaking through? None of this
- 1:07:08Speaker 1: is breaking through. And then I listened to.
- 1:07:09Speaker 3: Sarah Longwell's condoms.
- 1:07:12Speaker 1: Then I listened to Sarah Longwell's focus group this weekend.
- 1:07:17Speaker 1: And she's got first time Trump voters, Biden and Trump
- 1:07:19Speaker 1: voters asking them how they're thinking about Trump. And they're like,
- 1:07:22Speaker 1: Like Tommy said earlier, like they're all, oh, he's taking
- 1:07:24Speaker 1: an action on stuff, he's taking an action.
- 1:07:26Speaker 3: Like he promised, Hamas is raw dogging again. Promise made,
- 1:07:31Speaker 3: promise kept.
- 1:07:33Speaker 1: No, one of the people in the book, he's like,
- 1:07:36Speaker 1: I haven't heard much, but I heard about these condoms
- 1:07:38Speaker 1: that they're spending. He's like, I'm glad they're cutting all that.
- 1:07:40Speaker 1: The condoms for Hamas, that's crazy. And I'm like, oh,
- 1:07:43Speaker 1: that fucking broke through.
- 1:07:44Speaker 2: Of course it did. That broke through. Of course it did. Anyway,
- 1:07:48Speaker 2: we got a lot of work.
- 1:07:49Speaker 5: And Twitter's successful. The Elon fluffers are just out in force.
- 1:07:53Speaker 2: They're everywhere. They're attacking everything. Yeah, no.
- 1:07:56Speaker 1: Thank you, Sequoia management partner. I know you know a
- 1:07:59Speaker 1: lot about the federal government, fucking asshole.
- 1:08:02Speaker 3: Deleted the app? Downloaded the New York Times cooking app instead.
- 1:08:05Speaker 5: That's good.
- 1:08:06Speaker 2: That's good.
- 1:08:07Speaker 3: We may live in a fascist state, but I'm making
- 1:08:08Speaker 3: Mary Me Chicken.
- 1:08:09Speaker 2: And you know what? You're making it with ingredients? No tariffs.
- 1:08:12Speaker 3: That's right. No tariffs.
- 1:08:13Speaker 2: Thank you, Mr. Trump. Thank you, Mr. Trump.
- 1:08:15Speaker 3: All right.
- 1:08:15Speaker 1: When we come back, Lovett talks to the deputy director
- 1:08:17Speaker 1: of the OMB in the Obama administration and director of
- 1:08:20Speaker 1: the National Economic Council under Joe Biden, Brian Deese.
- 1:08:23Speaker 4: And just so you all know, we talked in between
- 1:08:25Speaker 4: the Mexican tariffs being paused and the Canadian tariffs being paused,
- 1:08:30Speaker 4: but we talked about it both as a negotiating tactic
- 1:08:33Speaker 4: and what it might look like if these tariffs are
- 1:08:35Speaker 4: ultimately implemented, including the Chinese tariffs, which as of this
- 1:08:39Speaker 4: recording are still, we believe, going into effect.
- 1:08:50Speaker 1: This show is sponsored by BetterHelp. We often hear about
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- 1:09:57Speaker 4: Joining us today for a quick and dirty breakdown of
- 1:09:59Speaker 4: Trump's trade war, he's the former deputy director of the
- 1:10:02Speaker 4: Office of Management and Budget and director of the National
- 1:10:05Speaker 4: Economic Council under President Biden.
- 1:10:07Speaker 3: Brian Deese, welcome back to the pod.
- 1:10:08Speaker 2: Thanks for having me.
- 1:10:10Speaker 4: As of this recording Monday afternoon, 25% tariffs are set
- 1:10:13Speaker 4: to go into effect against a broad range of Canadian imports,
- 1:10:15Speaker 4: with the exception of a 10% tariff on Canadian oil,
- 1:10:18Speaker 4: though there are last-minute negotiations that could push this off
- 1:10:21Speaker 4: another month. There will also be a 10% tariff on
- 1:10:24Speaker 4: Chinese imports. Trump and Mexican President Claudia Scheinbaum negotiated a
- 1:10:28Speaker 4: deal to delay tariffs by at least a month against Mexico,
- 1:10:31Speaker 4: with Mexico promising to send more troops to the southern
- 1:10:33Speaker 4: border and Scheinbaum securing some sort of a promise over
- 1:10:35Speaker 4: guns flowing south from the United States into Mexico.
- 1:10:39Speaker 3: Let's start with this.
- 1:10:40Speaker 4: I woke up this morning and I just opened my
- 1:10:44Speaker 4: phone and I just checked the Dow. I don't live
- 1:10:47Speaker 4: my life yoked to what the Dow does, but I
- 1:10:49Speaker 4: was like, are we in an economic crisis or not?
- 1:10:51Speaker 4: And what I saw was that the markets dipped a
- 1:10:53Speaker 4: little bit. And then upon the news that Trump had
- 1:10:57Speaker 4: this deal with Scheinbaum, they went back up. Does that
- 1:11:00Speaker 4: tell you that there is still a kind of belief
- 1:11:03Speaker 4: that Trump is just negotiating, that even as we're recording this,
- 1:11:06Speaker 4: he's threatening these massive and terrible tariffs? but is ultimately
- 1:11:09Speaker 4: just in some way negotiating?
- 1:11:11Speaker 11: Look, I think a lot of the market reaction can
- 1:11:12Speaker 11: be explained by exactly that, which is initially the market
- 1:11:16Speaker 11: thought he wasn't serious and he wouldn't do this. And
- 1:11:19Speaker 11: then the market thought, well, he will threaten these tariffs,
- 1:11:22Speaker 11: but he won't actually put them into effect. And now
- 1:11:24Speaker 11: I think there is still a belief that he may
- 1:11:26Speaker 11: put them into effect, but they'll only be in.
- 1:11:27Speaker 2: Effect for a short period of time because this is negotiating.
- 1:11:31Speaker 11: All of that is to say, though, the right way
- 1:11:33Speaker 11: to think about the impact is not what happens to
- 1:11:35Speaker 11: the Dow today. It's what happens to the prices that
- 1:11:38Speaker 11: people pay on typical things for no apparent reason. The
- 1:11:43Speaker 11: Wall Street Journal called this the dumbest trade war in history.
- 1:11:46Speaker 11: And it's one of the few times I think that
- 1:11:47Speaker 11: the Wall Street Journal actually understated it. This is all self-imposed.
- 1:11:52Speaker 11: And so even if the impact is only for a
- 1:11:55Speaker 11: short period of time or only muted, we're still the
- 1:11:58Speaker 11: end result is people are paying more for no apparent reason.
- 1:12:01Speaker 4: So Let's talk about what the impact could be. Again,
- 1:12:05Speaker 4: these tariffs against Canada may go in effect tomorrow.
- 1:12:08Speaker 3: They may not.
- 1:12:08Speaker 4: But if they did, some estimates found that they could
- 1:12:10Speaker 4: cost a typical household about $ 2, 600.
- 1:12:14Speaker 3: But that's an average.
- 1:12:15Speaker 4: It'll affect certain goods more than other goods. And because
- 1:12:18Speaker 4: of the unique interdependence of Canada and the United States,
- 1:12:22Speaker 4: it would affect some parts of the country more than others.
- 1:12:24Speaker 3: I want to.
- 1:12:26Speaker 4: Just divide it in half. First, what would be the
- 1:12:28Speaker 4: biggest price impacts? And then I want to talk about
- 1:12:29Speaker 4: the broader economic impact.
- 1:12:31Speaker 2: Sure.
- 1:12:32Speaker 11: So start of the price impacts on the goods that
- 1:12:36Speaker 11: we rely most on Canada and Mexico for. So fruits
- 1:12:41Speaker 11: and vegetables, Super Bowl time, avocados. Most of our fruits
- 1:12:45Speaker 11: and vegetables we import from Mexico. The price of those
- 1:12:48Speaker 11: things is going to go up by about 25 percent.
- 1:12:51Speaker 11: Gas at the pump. There are certain regions of the country,
- 1:12:54Speaker 11: particularly the Midwest, that rely on imported petroleum products from Canada.
- 1:12:59Speaker 11: Most estimates are that you'd see a 50 cent increase
- 1:13:01Speaker 11: in gas in the Midwest, probably more like 25 cents
- 1:13:05Speaker 11: across the country, but it could be higher in particular places.
- 1:13:09Speaker 11: And then the kind of typical goods that you see
- 1:13:12Speaker 11: walking down a Target aisle or a Walmart aisle. So iPhones, toasters,
- 1:13:18Speaker 11: consumer electronics are all going to go up by in
- 1:13:21Speaker 11: the ballpark of 25% because when a tariff is applied,
- 1:13:25Speaker 11: it's not just that the importer pays the tariff, it's
- 1:13:28Speaker 11: that the competitors then raise their prices.
- 1:13:30Speaker 5: To match those.
- 1:13:31Speaker 11: And so the consumer ends up paying most of that.
- 1:13:35Speaker 11: So in terms of practical and practically, most of what
- 1:13:38Speaker 11: you buy, if you're walking down the grocery store or
- 1:13:40Speaker 11: you're walking through a Target or Walmart, the prices are
- 1:13:43Speaker 11: going to go up. The first order impact is typical
- 1:13:46Speaker 11: consumers pay more on things like groceries and gas and
- 1:13:50Speaker 11: consumer electronics. The second order impact is if that actually
- 1:13:53Speaker 11: gets washed away by a stronger dollar, then it hurts
- 1:13:58Speaker 11: American manufacturers, which is why I saw a cartoon trying
- 1:14:02Speaker 11: to say, what is Trump actually doing, where Trump was
- 1:14:05Speaker 11: pissing into a fan and it was spitting all back
- 1:14:07Speaker 11: into his face. And usually that's sort of evocative, but
- 1:14:12Speaker 11: actually I think that's not an unreasonable way of thinking
- 1:14:14Speaker 11: about what's going on here. It's hard to avoid this
- 1:14:17Speaker 11: coming back in and being self-defeating in some way or
- 1:14:20Speaker 11: shape or form.
- 1:14:21Speaker 3: So then what could be the job impact?
- 1:14:23Speaker 4: So that's the kind of the consumer price impacts, but
- 1:14:26Speaker 4: there's a lot of interdependence between, so some of the
- 1:14:29Speaker 4: goods that could be tariffs are products that are brought
- 1:14:31Speaker 4: down into the U S to be part of domestic
- 1:14:33Speaker 4: manufacturing here. Who are people who, what jobs are at
- 1:14:36Speaker 4: risk because of this, of these tariffs?
- 1:14:38Speaker 11: Look, the place I'm most worried about is the auto
- 1:14:40Speaker 11: industry because the auto industry is incredibly dependent on the
- 1:14:46Speaker 11: interrelationship with Canada and Mexico. Um, a lot of the
- 1:14:50Speaker 11: parts that go into making a car are produced in
- 1:14:53Speaker 11: Canada and they go back and forth over the border.
- 1:14:55Speaker 11: Anyone who lives in Michigan or has been up in Detroit,
- 1:14:57Speaker 11: the Windsor Bridge, you know, our auto industry is essentially
- 1:15:01Speaker 11: one industry that operates across a border. So to build a,
- 1:15:05Speaker 11: you know, to build a typical, if GM is building
- 1:15:08Speaker 11: a typical car, parts might go back and forth across
- 1:15:10Speaker 11: that border five, six, seven different times. And so the
- 1:15:14Speaker 11: industry right now is really freaking out and saying, we've
- 1:15:18Speaker 11: never had to grapple with the question of, is a
- 1:15:21Speaker 11: part going to be tariffed, a steering wheel going to
- 1:15:23Speaker 11: be tariffed four or five different times as it goes
- 1:15:25Speaker 11: across the border?
- 1:15:26Speaker 2: How is this going to work?
- 1:15:27Speaker 11: And by the way, if Canada retaliates and starts to
- 1:15:32Speaker 11: cut off access to parts, that's going to have a
- 1:15:35Speaker 11: broader cascading impact on our company's ability to actually produce
- 1:15:39Speaker 11: vehicles in the first place.
- 1:15:40Speaker 4: In the previous Trump term, There was a lot of
- 1:15:44Speaker 4: big talk on imposing these kinds of broad tariffs, but
- 1:15:47Speaker 4: he ultimately did a set of targeted or more targeted tariffs.
- 1:15:51Speaker 4: The Biden administration actually left some of those tariffs in
- 1:15:53Speaker 4: place and then imposed a bunch on their own. There
- 1:15:55Speaker 4: was a tariff on electric cars, batteries, certain metals, certain minerals,
- 1:16:00Speaker 4: even certain kinds of cranes. Can you talk about the
- 1:16:03Speaker 4: difference in the logic there? between the Biden administration's approach
- 1:16:07Speaker 4: to tariffs and the Trump administration's approach to tariffs?
- 1:16:09Speaker 11: Yeah, to shorthand it, it's a difference between strategic and stupid.
- 1:16:13Speaker 11: So there is a real rationale, an economic and national
- 1:16:18Speaker 11: security rationale to use tariffs. If other countries are explicitly,
- 1:16:23Speaker 11: either illegally or unfairly contorting their own industry in an
- 1:16:26Speaker 11: effort to try to undermine American industry in areas where
- 1:16:31Speaker 11: we have a strategic state, Things where we need components
- 1:16:35Speaker 11: that go into building planes and tanks that support our military.
- 1:16:39Speaker 11: Things like critical minerals that are actually strategic and China
- 1:16:43Speaker 11: could have a stranglehold on different supply chains. In those areas,
- 1:16:46Speaker 11: you can actually see a country like China is actually
- 1:16:49Speaker 11: taking illegal action to try to subsidize its industry in
- 1:16:53Speaker 11: a way that could then undercut U.S.
- 1:16:54Speaker 2: Industry.
- 1:16:55Speaker 11: It makes a lot of sense to actually step in
- 1:16:57Speaker 11: and say, no, we're going to make sure that U.S.
- 1:16:59Speaker 11: industry has a way to actually build and scale its
- 1:17:02Speaker 11: own capabilities. But to put the strategic versus stupid in context,
- 1:17:08Speaker 11: the total amount of goods that the Biden administration put
- 1:17:13Speaker 11: tariffs on, these strategic tariffs, was about $ 18 billion. You
- 1:17:17Speaker 11: compare that to what's on the table right now with Trump, $ 1. 4 trillion. So,
- 1:17:23Speaker 11: you know, people say it's the difference between a scalpel
- 1:17:25Speaker 11: and a sledgehammer. This is like a scalpel versus like
- 1:17:29Speaker 11: a whole army versus sledgehammers, just hitting anything that you
- 1:17:32Speaker 11: could possibly hit. And so even to give the first
- 1:17:35Speaker 11: Trump administration some credit under, you know, Bob Lighthizer and others,
- 1:17:40Speaker 11: the ultimate approach they took to China was more calibrated.
- 1:17:43Speaker 2: It wasn't across the board.
- 1:17:44Speaker 11: It didn't hit everything. It exempted consumer goods. This approach
- 1:17:48Speaker 11: is literally saying we'll just put a tariff on anything,
- 1:17:52Speaker 11: even if the end result is you're pissing into a fan.
- 1:17:54Speaker 11: It's all coming back. There's just there's not a strategic
- 1:17:57Speaker 11: rationale behind the approach.
- 1:17:59Speaker 4: So Trump bullies Colombia. He gets a quick win. The
- 1:18:04Speaker 4: damage to our reputation as a safe and reliable trading
- 1:18:07Speaker 4: partner takes a hit, but that's very hard to measure.
- 1:18:10Speaker 4: Trump is now, obviously, he's threatening Canada, he's threatening China,
- 1:18:13Speaker 4: he's threatening Mexico. He's also today was talking about the
- 1:18:17Speaker 4: European Union. What happens if the U.S. tries to fight
- 1:18:23Speaker 4: these different trade wars on multiple fronts? And how could
- 1:18:28Speaker 4: not just one country independently, but how could countries together
- 1:18:32Speaker 4: respond in a way that harms our economy, that harms
- 1:18:36Speaker 4: our influence on the world stage?
- 1:18:38Speaker 11: So we benefit when countries believe that when we say something,
- 1:18:45Speaker 11: we're going to do it. And that's a little bit
- 1:18:47Speaker 11: of the problem with this strategy of constantly threat everybody
- 1:18:50Speaker 11: with tariffs, right, is either one of two things happens. One,
- 1:18:54Speaker 11: you threaten it and then pull it back. It seems
- 1:18:56Speaker 11: like what's happened with Scheinbaum even today, the 25% tariff
- 1:19:01Speaker 11: is not going to go into effect today with Mexico,
- 1:19:03Speaker 11: but maybe it will go into effect a month from now.
- 1:19:06Speaker 11: You do that enough times and people start to question
- 1:19:10Speaker 11: whether the United States will actually do what it says.
- 1:19:12Speaker 11: Or you follow through and the bullying tactic causes other
- 1:19:16Speaker 11: people to recognize, well, if you're going to bully us,
- 1:19:19Speaker 11: we're going to go and find other friends. We're going
- 1:19:21Speaker 11: to go and not rely on the United States anymore.
- 1:19:26Speaker 11: And across time, what that means is when it comes
- 1:19:29Speaker 11: to security partnerships, when it comes to economic partnerships, countries
- 1:19:33Speaker 11: just aren't going to be as willing or set a
- 1:19:35Speaker 11: higher price to actually partner with the U.S. And look,
- 1:19:41Speaker 11: at the end of the day, we should be prepared
- 1:19:45Speaker 11: to stand up more aggressively when countries are cheating and
- 1:19:48Speaker 11: breaking the rules. And a lot of that is really
- 1:19:53Speaker 11: a story about China. And we should be more aggressive
- 1:19:57Speaker 11: in saying, China uses all of its tools of economic
- 1:20:01Speaker 11: statecraft to actually flood markets like steel in the U.S.
- 1:20:04Speaker 11: to undercut our capacity. We should be more vocal about that.
- 1:20:07Speaker 11: We shouldn't be apologized for saying we're going to stand
- 1:20:10Speaker 11: up for American disinterest. The challenge is when you're doing
- 1:20:13Speaker 11: that on multiple fronts and not distinguishing between a country
- 1:20:16Speaker 11: like China, where you can identify multiple instances where they're
- 1:20:20Speaker 11: doing this, and Canada, where it's really hard to put
- 1:20:23Speaker 11: like a sentence, let alone a paragraph together of saying,
- 1:20:26Speaker 11: What is it that we're actually so concerned about or
- 1:20:29Speaker 11: afraid about in that context?
- 1:20:31Speaker 2: You know, when the U.S.
- 1:20:32Speaker 11: Stops differentiating between this, then, you know, you start to
- 1:20:36Speaker 11: put us in a position where we're not going to
- 1:20:39Speaker 11: have many friends or allies around the world.
- 1:20:41Speaker 4: Is there any part of you that sees how Trump
- 1:20:44Speaker 4: is kind of wielding America's economic power and think, obviously,
- 1:20:49Speaker 4: this is dangerous, this is reckless, this is careless, but
- 1:20:52Speaker 4: there are ways in which Democrats... were not as aggressive
- 1:20:56Speaker 4: as they should have been, that President Biden wasn't as
- 1:20:58Speaker 4: aggressive as he shouldn't have been. Is there some middle
- 1:21:01Speaker 4: distance between Trump's kind of careless and stupid wielding of
- 1:21:05Speaker 4: America's power and our kind of, not just Democrats, but
- 1:21:09Speaker 4: a bipartisan consensus that's been kind of a little bit
- 1:21:12Speaker 4: more deferential and a little bit more built around consensus?
- 1:21:15Speaker 11: Look, in the first instance, I don't think we should
- 1:21:17Speaker 11: denigrate a number of the goals that President Trump and
- 1:21:19Speaker 11: his team are putting forward. They're talking about wanting to
- 1:21:22Speaker 11: have more sustained, strong economic growth in this country. We
- 1:21:25Speaker 11: should be shooting for that. My concern is not that goal.
- 1:21:28Speaker 11: It's just I don't think that the policies are going
- 1:21:29Speaker 11: to get us there. He's talking about building manufacturing capacity,
- 1:21:33Speaker 11: industrial capacity here in the U.S.
- 1:21:35Speaker 2: Right goal.
- 1:21:36Speaker 11: The question is, is any of this actually going to
- 1:21:38Speaker 11: get there? So I think we should be quite clear
- 1:21:41Speaker 11: about saying these are goals that we share. The question is,
- 1:21:46Speaker 11: how do we get there? And yes, I think that
- 1:21:49Speaker 11: there are a number of places where we need to
- 1:21:52Speaker 11: ask ourselves really hard questions about, are we using the
- 1:21:56Speaker 11: tools we have to stand up as aggressively as we
- 1:21:59Speaker 11: can for the interests of American workers, American consumers, and
- 1:22:03Speaker 11: where our economy is going to go over the medium term.
- 1:22:06Speaker 11: But I also think we have to maintain this view
- 1:22:09Speaker 11: that there, that there is smart and stupid here, right?
- 1:22:13Speaker 11: There is a, um, a line between saying, just because
- 1:22:18Speaker 11: we have a tool, we're going to, you know, bang
- 1:22:20Speaker 11: away at it versus, you know what, like putting more
- 1:22:24Speaker 11: costs on typical consumers right now at the grocery store
- 1:22:27Speaker 11: and the gas pump is just not a good idea.
- 1:22:30Speaker 11: And so we're going to, you know, we're going to
- 1:22:33Speaker 11: stand up and say, we could be using these tools
- 1:22:36Speaker 11: more aggressively, but to the end of actually, for example,
- 1:22:39Speaker 11: having an auto industry that actually gets competitive again and
- 1:22:42Speaker 11: that actually competes with China. that would be a goal
- 1:22:44Speaker 11: worth actually fighting for. That would be a goal worth
- 1:22:47Speaker 11: using our tools more effectively for.
- 1:22:48Speaker 4: Before we let you go, you were the deputy director
- 1:22:51Speaker 4: of OMB. Elon Musk has basically helped lead a hostile takeover.
- 1:22:55Speaker 4: OMB was the source of that federal funding freeze memo
- 1:22:58Speaker 4: that sowed a bunch of chaos last week. What is
- 1:23:01Speaker 4: your reaction to what's happening at OMB? And what is
- 1:23:06Speaker 4: the power that OMB has if it is not restrained
- 1:23:10Speaker 4: by either deference to political impact or deference to other agencies?
- 1:23:16Speaker 11: So the power that OMB has within the executive branch
- 1:23:20Speaker 11: and under the constitution is quite limited. Congress is responsible
- 1:23:25Speaker 11: for appropriating money and the executive branch must follow the
- 1:23:30Speaker 11: laws that Congress passes.
- 1:23:33Speaker 2: Exactly.
- 1:23:34Speaker 11: But I think we're going to come back to this,
- 1:23:36Speaker 11: which is an OMB is responsible for them executing those
- 1:23:40Speaker 11: strategies on behalf of the executive branches that were appropriated funds.
- 1:23:44Speaker 11: And yes, I hear what you're saying is quaint, but
- 1:23:47Speaker 11: at the same time, ultimately, I think what we saw
- 1:23:49Speaker 11: with the funding.
- 1:23:50Speaker 2: Freeze is where this is going, which is.
- 1:23:54Speaker 11: Notwithstanding some of the bluster, it is actually the case
- 1:23:58Speaker 11: that legally the executive branch cannot both spend money that
- 1:24:03Speaker 11: Congress has not appropriated and it can't fail to spend
- 1:24:06Speaker 11: money when Congress has said, so I think we're going
- 1:24:08Speaker 11: to have a big, we're going to have a set
- 1:24:09Speaker 11: of fights on this. And this is going to get,
- 1:24:12Speaker 11: some of this is going to get hashed out in
- 1:24:13Speaker 11: the courts. But look, I think having worked at OMB
- 1:24:16Speaker 11: and having felt the constraints of, uh, of the fact that,
- 1:24:20Speaker 11: you know, you can't violate, uh, the, uh, the any
- 1:24:23Speaker 11: deficiency act or the impoundment act, uh, even if there
- 1:24:27Speaker 11: may be some impulse at some point to say, boy,
- 1:24:29Speaker 11: it would be great if we could stop that. Um,
- 1:24:32Speaker 11: I think that, you know, I, I am, I am,
- 1:24:34Speaker 11: I am, I believe that Congress is going to step
- 1:24:38Speaker 11: in because one of the few roles that Congress actually
- 1:24:41Speaker 11: cherishes in this context is.
- 1:24:43Speaker 2: They do have the power of the purse.
- 1:24:45Speaker 11: Um, and without that, it changes fundamentally, you know, some,
- 1:24:49Speaker 11: some pretty big tenants of our constitutional system.
- 1:24:52Speaker 2: Yeah.
- 1:24:52Speaker 4: Said like a guy that didn't move a sofa bed
- 1:24:54Speaker 4: into OMB, uh, to go hardcore for the record.
- 1:24:57Speaker 11: Uh, we worked a lot of nights and weekends at, uh, at,
- 1:25:01Speaker 11: At OMB, through the financial crisis and government shutdowns and
- 1:25:03Speaker 11: the like, there are extraordinarily talented professionals who I certainly
- 1:25:08Speaker 11: worked hand-in-hand with over the weekend many times during my
- 1:25:12Speaker 11: government service.
- 1:25:13Speaker 4: If you were hoping Democrats were out there saying one
- 1:25:15Speaker 4: thing about the tariffs, about the trade war, what would
- 1:25:18Speaker 4: that one thing be?
- 1:25:19Speaker 11: Why would we want consumers to pay more at the
- 1:25:22Speaker 11: gas pump and more at the grocery store and more
- 1:25:25Speaker 11: for their iPhones and their consumer electronics when we are
- 1:25:28Speaker 11: not achieving anything as a country?
- 1:25:29Speaker 4: Brian Deese? So good to see you. Thanks for doing this.
- 1:25:33Speaker 4: And I know you worked hard. I worked with you
- 1:25:35Speaker 4: at the time. I worked with you when you were
- 1:25:37Speaker 4: not in that role, but when you were at NEC.
- 1:25:40Speaker 3: And you always were so tired looking. God, you always
- 1:25:42Speaker 3: looked exhausted.
- 1:25:43Speaker 2: That old nickname, nights and weekends love it. I think
- 1:25:46Speaker 2: that's what we called you.
- 1:25:47Speaker 3: All right, this interview's over.
- 1:25:55Speaker 1: Before we go, two quick things. Love It or Leave
- 1:25:58Speaker 1: It has some great shows coming up, I hear. This week,
- 1:26:00Speaker 1: Love It will be at the Dynasty Typewriter in L.A.
- 1:26:02Speaker 1: with great guests, including Andy Richter, Paula Poundstone, and Jason Isaacs.
- 1:26:07Speaker 3: Hell yeah. That's a big lineup. That's a great episode.
- 1:26:10Speaker 2: Solid, man. Tickets?
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- 1:26:14Speaker 1: can't make it, you know, Saturday morning, you can listen
- 1:26:16Speaker 1: to Love It or Leave It.
- 1:26:17Speaker 2: No big deal.
- 1:26:18Speaker 1: Also, Vote Save America this month is making donations as
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- 1:27:07Speaker 3: Janelle Bynum has a couple of McDonald's franchises.
- 1:27:10Speaker 2: Really?
- 1:27:10Speaker 3: Which is an interesting fact about her.
- 1:27:12Speaker 2: That's cool.
- 1:27:14Speaker 1: Well, that's our show for today. Dan and I will
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- 1:27:50Speaker 1: Our producers are David Toledo and Saul Rubin. Our associate
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