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House Stopgap Faces Senate Changes · Balance of Power

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Speaker 1: Bloomberg Audio Studios, podcasts, radio news. You're listening to the
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Speaker 2: President Trump, of course, is not here in Washington at
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Speaker 2: the moment. He's actually on route now to Georgia, while
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Speaker 2: he will be speaking at a high school later this afternoon,
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Speaker 2: having attended earlier the dignified transfer of three fallen service
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Speaker 2: members who died this past weekend in the Middle East
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Speaker 2: amid the ongoing conflict with Iran at Dover Air Force
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Speaker 2: Base in Delaware. Even as he was making his way there,
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Speaker 2: of course, the President has been weighing in on the
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Speaker 2: escalating nature of this conflict with Iran on true social
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Speaker 2: threatening to essentially go tit for tat if Iran were
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Speaker 2: to try to attack ships in the Strait of Horror News.
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Speaker 2: He says the US will go after a bridge or
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Speaker 2: a power plant, bomb or destroy them, essentially saying that
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Speaker 2: this war will go further, and the President suggested that
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Speaker 2: the American people may not be against the war itself,
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Speaker 2: even if they don't like the prices that they are
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Speaker 2: seeing at the pump.
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Speaker 3: Americans aren't against the wark. The apoll just came out.
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Speaker 3: Americans don't one had gasolene precres, but they're not against
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Speaker 3: the war. That just came out loud and clear in
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Speaker 3: a poll. Nobody wants Iran to have a nuclear weapon.
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Speaker 4: Let's get to Tyler Kendall, Bloomberg's Washington correspondent, ahead of
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Speaker 4: our conversation with Congressman Chip Roy. She's on the north
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Speaker 4: lawn of the White House right now as the President
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Speaker 4: makes his way from Dover to Georgia. And Tyler, you heard,
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Speaker 4: of course, Kaylee reference the president's post on truth social
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Speaker 4: Will he be escalating as they say, to de escalate
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Speaker 4: once again?
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Speaker 5: Well, Joe, at this point, despite efforts by mediators to
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Speaker 5: try to avoid further escalation, the tensions appear pointed there.
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Speaker 5: As the US expands the scopes of its target You
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Speaker 5: had this post that you guys were talking about from
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Speaker 5: President Trump saying that the US will go after either
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Speaker 5: a bridge or a power plant in exchange for every
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Speaker 5: commercial vessel that Iran targets in the strait of her
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Speaker 5: moves as we've gotten very little indication that Iran is
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Speaker 5: willing to let up its leverage when it comes to
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Speaker 5: disrupting global oil flows. In fact, President Trump, as you
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Speaker 5: well know, yesterday, said that Iran desperately wants to make
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Speaker 5: a deal, but that the US isn't even interested in
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Speaker 5: coming to the negotiating table unless Iran does in what
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Speaker 5: he called a meaningful way. But we heard from one
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Speaker 5: of Iran's top negotiators earlier today seeming to downplay reports
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Speaker 5: that there was this meeting yesterday in Pakistan, instead saying
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Speaker 5: that there are not negotiations, just messages being exchanged between
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Speaker 5: the two sides, and Joe and Keiley, as you well know,
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Speaker 5: the disruptions extend beyond the strait of her moves, which
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Speaker 5: is just adding to the urgency of the moment. We
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Speaker 5: got new satellite imagery overnight appearing to show that at
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Speaker 5: least two tankers loaded up with Saudi crude made U
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Speaker 5: turn as they headed toward the Red Sea, seeming to
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Speaker 5: indicate that that threat from the Iranian backed proxy group
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Speaker 5: the who Theis to institute a maritime blockade is already.
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Speaker 6: Working all right.
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Speaker 2: Bloomberg's Tyler Kendall Live on the north lawn of the
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Speaker 2: White House. Thank you so much, and for more on this,
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Speaker 2: we go now to the other end of Pennsylvania Avenue
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Speaker 2: live on Capitol Hill, where we're joined by Republican Congressman
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Speaker 2: Chip Roy of Texas, who is joining us live now
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Speaker 2: on Bloomberg TV and Radio. Congressman, welcome back. It's great
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Speaker 2: to have you on balance of power as we consider
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Speaker 2: this ongoing war, and we want to get to other
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Speaker 2: matters before you and your colleagues in the House today
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Speaker 2: as well. But given the escalating nature we are seeing
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Speaker 2: the Defense Secretary having testified yesterday that it's already cost
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Speaker 2: thirty seven point five billion dollars, with the Pentagon obviously
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Speaker 2: asking for billions more than that in this supplemental request
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Speaker 2: that's going through the reconciliation process. For how long can
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Speaker 2: you can Congress continue to authorize funding without offsets for
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Speaker 2: this war to continue to be prosecuted.
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Speaker 7: Well, great to be on Obviously, we're trying to move
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Speaker 7: forward this week to get a reconciliation package done. Frankly,
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Speaker 7: because we have no real partners with our Democrat colleagues
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Speaker 7: to figure out how to move things through, we had
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Speaker 7: to do it to fund ice and border patrol. Now
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Speaker 7: we're trying to figure out how to make sure our
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Speaker 7: military has the resources it needs, as well as ensuring
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Speaker 7: we can get the Save Act through the Senate so
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Speaker 7: we can protect our elections. But to your point, I
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Speaker 7: am a fiscal hawk. I am concerned about spending, and
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Speaker 7: I am concerned the extent to which this is not
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Speaker 7: being paid for, and that we need to have a
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Speaker 7: full throated debate here in the halls of Congress about
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Speaker 7: the war. I happen to be one who supports is real,
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Speaker 7: supports our national security in prison, wants to check around
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Speaker 7: and make sure that we're stopping a rand from gaining
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Speaker 7: whether it's conventional or nuclear capabilities. But we need to
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Speaker 7: make sure we have a full throated in support by
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Speaker 7: Congress or we shouldn't be doing it. And we haven't
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Speaker 7: had that debate fully, and I think that's a part
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Speaker 7: of the discussions today on the NDAA, the National Defense
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Speaker 7: Authorization Act, as well as the reconciliation package. We're going
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Speaker 7: to want to move forward this week to get that
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Speaker 7: budget process step forward. I think that will pass, but
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Speaker 7: we're going to have to continue to debate whether we're
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Speaker 7: going to get a full Save Act and whether we're
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Speaker 7: going to have anything with it. I'm demanding, which is
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Speaker 7: in any future negotiations on a fourth reconciliation package, that
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Speaker 7: we pay for the ninety billion dollars of this that
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Speaker 7: is unpaid for. We cannot keep wrecking up debt and
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Speaker 7: we need to have a conversation about the war.
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Speaker 8: Well, we hear you, Congressman.
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Speaker 4: I'm just curious if you could act as our reporter
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Speaker 4: here the extent that you're hearing a vote count, will
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Speaker 4: will this budget resolution pass?
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Speaker 8: Does the speaker have the votes?
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Speaker 4: We'll ask you about the cr as well, because obviously
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Speaker 4: you've got sixty seven billion dollars I believe here for
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Speaker 4: the Pentagon and what many say is badly needed on
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Speaker 4: the other side of the river.
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Speaker 7: Yeah, for sure, I do believe the Pentagon needs additional funding,
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Speaker 7: and I'm happy to try to provide that and support it.
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Speaker 7: But I do want to make sure we're paying for it.
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Speaker 4: Right.
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Speaker 7: There ain't no free lunch, and too many people in
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Speaker 7: this town think there is. I do think that the
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Speaker 7: first step of the reconciliation process, the budget will move
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Speaker 7: forward this week. That's my bet. We'll see we still
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Speaker 7: have some votes that we're working on on the floor.
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Speaker 7: We need to move forward to try to get say
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Speaker 7: back done, and we do need to try to support
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Speaker 7: our military while we're engaged. But I think the NDAA
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Speaker 7: might be in trouble, and I think that's in part
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Speaker 7: because we haven't had the full throated conversation on the
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Speaker 7: war that we need to have and have a unified
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Speaker 7: approach to how we're going to make sure our military
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Speaker 7: as strong as it needs to be, not just to
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Speaker 7: deal with a RAM, but to deal with China, a
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Speaker 7: real threat on the horizon. We need to make sure
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Speaker 7: that we have a transformation of our military for generations
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Speaker 7: to come so that we are still the global superpower
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Speaker 7: and we can defend our country and our interests right now.
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Speaker 7: We got to get through this step this week. But
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Speaker 7: my message has got to be clear. We got to
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Speaker 7: pay for this stuff, and we need to have Congress
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Speaker 7: in the conversation on war. That's what the Constitution contemplates,
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Speaker 7: that's what it says, and we need to be a
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Speaker 7: part of that.
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Speaker 2: Well, if there's no guarantee, Congressman, that there will be
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Speaker 2: a fourth reconciliation package that may include payforce for this one,
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Speaker 2: why vote for it? Without the payfors now today.
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Speaker 7: Yeah, I'm not a fan, as you know, of voting
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Speaker 7: for anything that's unpaid for. Right now, I am being
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Speaker 7: a team player to move something through this week so
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Speaker 7: that we can try to get the Save America Act
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Speaker 7: passed through a recal strength Senate and against Democrats who
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Speaker 7: refuse to work with us. But I am being very
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Speaker 7: clear that we've got to pay for it in our
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Speaker 7: future conversations, and by the way, we have multiple steps
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Speaker 7: to go on this one. I need to know that
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Speaker 7: the Save America Act is real. I need to know
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Speaker 7: that we have a real plan on how we're dealing
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Speaker 7: with the war. I need to know that we're going
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Speaker 7: to be serious about paying for this ninety billion dollars
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Speaker 7: in the next phase. You're right, we may not get
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Speaker 7: a fourth reconciliation, but I'm willing to roll the dice
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Speaker 7: this week as of right now, based on the information
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Speaker 7: in front of me, to try to give us a
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Speaker 7: shot to secure American elections and get the Save America
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Speaker 7: passed and try to backfill our munitions that are military needs,
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Speaker 7: because our men and women in uniform deserve to have
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Speaker 7: the tools to carry out their job when they're being
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Speaker 7: asked to do it, but Congress is going to have
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Speaker 7: to work with the President to make sure we've got
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Speaker 7: a real plan for our military going forward. This is
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Speaker 7: all complicated stuff. The Constitution requires separation powers. Congress has
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Speaker 7: to have a voice, but our men and women in
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Speaker 7: uniform deserve the tools to do their job. So I'm
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Speaker 7: trying to balance those interests and send the messages that
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Speaker 7: need to be send both to the White House and
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Speaker 7: to my Democratic colleagues that we need to have adults
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Speaker 7: sit down and get this done the right way.
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Speaker 4: Well, I'm sure that you're sending that message to the
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Speaker 4: Speaker and Congressman. I appreciate the fact that we can
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Speaker 4: acknowledge that this is complex stuff. There are a lot
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Speaker 4: of nuances here that are difficult to put on a
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Speaker 4: bumper sticker. I'd like to bring our audience to your
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Speaker 4: Stock Trading Act, your Restore Trust in Congress Act.
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Speaker 8: This is a big issue.
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Speaker 4: The House plans to vote on the Stop Insider Trading Act,
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Speaker 4: which does not require divestment yours does can both pass well.
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Speaker 7: Thanks for the question. First of all, thanks for you
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Speaker 7: all getting the facts right. I do a lot of
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Speaker 7: interviews where people get it all confused. You laid it
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Speaker 7: out beautifully. That's exactly right. Six years ago I worked
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Speaker 7: on a bipartisan basis to try to move forward and
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Speaker 7: say we should ban all congressional stock trading, including divestiture.
9:01
Speaker 7: Like you said, we worked out a deal to get
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Speaker 7: Republicans united, or at least close to united, behind a
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Speaker 7: deal that's going to say you can't buy equities, but
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Speaker 7: you can maintain the equities you come in with, but
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Speaker 7: you'll have to have the kind of transparency that we
9:15
Speaker 7: require of the executives, the CEOs, and so forth of
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Speaker 7: publicly traded companies under SEC rules. So I think that's
9:22
Speaker 7: a giant step forward, if you think about it. To
9:25
Speaker 7: say that members of Congress cannot purchase any equities, that
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Speaker 7: would be a big deal. So I'll support it. However,
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Speaker 7: I always have it. However, my problem is they added
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Speaker 7: the Save Act, of which I'm the author and I
9:37
Speaker 7: support loudly, to the Stock Trading Bill. Now, the purpose
9:42
Speaker 7: of that is to make it partisan. The purpose of
9:44
Speaker 7: that is to score political points. I don't like that
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Speaker 7: way of doing things. Like, look, i'm happy we're an election.
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Speaker 7: You got to go win the election. But I want
9:52
Speaker 7: to have a straight up or down vote on stock trading.
9:54
Speaker 7: I want everybody to have to go in front of
9:55
Speaker 7: the American people on a one subject bill and tell
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Speaker 7: them what they think is right. Do you want to
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Speaker 7: amend it? Offer an amendment? If they don't, then vote
10:03
Speaker 7: up or down. That's what I think we ought to do.
10:05
Speaker 7: But at least we're getting a vote today for the
10:08
Speaker 7: first time to which I'm aware on this issue, and
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Speaker 7: I've been trying for six years to get it. So
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Speaker 7: I'll take this as a step forward. Hopefully we will
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Speaker 7: see it pass, but then we're going to need to
10:18
Speaker 7: get a straight up or down vote on it pretty
10:20
Speaker 7: soon if I can have anything to do with it.
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Speaker 2: Okay, So one step forward? What another step forward? For
10:27
Speaker 2: this to extend beyond the legislative branch? Should this reach
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Speaker 2: the White House?
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Speaker 5: Too?
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Speaker 2: Why should the President or those working on his behalf
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Speaker 2: be able to trade stocks?
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Speaker 7: Yeah? I agree. It should apply to the entirety of
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Speaker 7: the federal government across all branches. Separation of powers also
10:40
Speaker 7: means that we should all kind of treat ourselves the
10:41
Speaker 7: same way in terms of both transparency and the rules
10:44
Speaker 7: by which we operate. Is so it'll try. It should
10:46
Speaker 7: apply to the President on down and the executive branch,
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Speaker 7: everybody in the legislative branch, and all judges, including the
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Speaker 7: Supreme Court. This bill obviously is targeted to Congress again,
10:55
Speaker 7: baby steps in the sausage making legislative process. If we
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Speaker 7: get our house in order in Congress, then I think
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Speaker 7: we can then point the finger at the courts and
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Speaker 7: the executive branch and make them adhere to the same rules.
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Speaker 7: That would be my goal in my preference, and I'm
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Speaker 7: not going to stop fighting for it. Today is a
11:10
Speaker 7: giant step forward again. I think Congress is poised today
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Speaker 7: to state that members of Congress should not be buying equities.
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Speaker 7: That's a very powerful statement to say that. And by
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Speaker 7: the way, that's not insider trading. If you have insider trading,
11:23
Speaker 7: you can go get convicted of that. Right now. It's
11:25
Speaker 7: about trust. It's about believing that your members of Congress
11:29
Speaker 7: are actually making decisions in their committees and on the
11:31
Speaker 7: floor that are in their interest, the people's interests, not
11:34
Speaker 7: the interests of their financial interests. Right So, if you're
11:37
Speaker 7: voting on healthcare, you're doing it for the people. You're
11:40
Speaker 7: not doing it because you own stock in an insurance
11:42
Speaker 7: company or a pharma company. Right, if you're voting on defense,
11:45
Speaker 7: you're not doing it because you own Palanteer or Lockheed.
11:48
Speaker 7: You're doing it for the people. That's what I think
11:50
Speaker 7: is important.
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Speaker 4: It's wild for people who are not in Washington circles
11:54
Speaker 4: to hear this conversation Congressman, and why it took so
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Speaker 4: long of.
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Speaker 8: For this to be addressed.
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Speaker 4: I don't know if this passes, if that'll be the
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Speaker 4: end of the Nance ETF. Maybe that's a separate issue,
12:07
Speaker 4: but I do wonder from your view, why it's taken
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Speaker 4: so long.
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Speaker 8: Are there members you talk to in the cloak room.
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Speaker 4: Who say, hey, Chip, I'm sorry I'm trading Intel this weekend.
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Speaker 8: You don't have my vote. Who wants to keep trading?
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Speaker 7: Well, you know, look, I don't want to talk about
12:25
Speaker 7: private conversation I have with people, but i'll tell you
12:27
Speaker 7: broadly there are two forces at play. One you've got
12:30
Speaker 7: people who they just want to trade because they want
12:32
Speaker 7: more money. I'm just going to be blunt. And number two,
12:36
Speaker 7: you've got people who believe they've got the right to
12:38
Speaker 7: do it right that as a member, you know, as
12:40
Speaker 7: a you know, citizen, they have the right to trade
12:43
Speaker 7: stocks that we can't limit that. I disagree. It is
12:46
Speaker 7: a privilege to serve in the United States Congress. We
12:49
Speaker 7: limit salary, we you know, we limit what you can
12:52
Speaker 7: do in terms of being employed. At the same time,
12:55
Speaker 7: and there's a lot of conflicts there. People own car dealerships,
12:57
Speaker 7: people own farms. I get it, but we need to
13:00
Speaker 7: start cabining that in so that people can trust Congress
13:02
Speaker 7: again to be here for their interests. By the way,
13:05
Speaker 7: especially when you don't have term limits, especially when people
13:08
Speaker 7: are here endlessly, you should come here for two or
13:10
Speaker 7: three or four terms, and if that's no longer good
13:13
Speaker 7: for you personally, then go home. But it's a sacrifice.
13:16
Speaker 7: It's supposed to be a sacrifice. So that's my message
13:19
Speaker 7: to my colleagues. You know, suck it up, gus. You
13:21
Speaker 7: get to be a member of the United States Congress.
13:23
Speaker 7: Let's go do this so that people can believe in
13:25
Speaker 7: us again.
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Speaker 2: Well, and you are a member of the United States Congress.
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Speaker 2: You are a member of the Budget Committee. So just finally,
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Speaker 2: on reconciliation four point zero, which I know you want
13:35
Speaker 2: to include pay force for what is going through the
13:37
Speaker 2: process now, But what else would be on your wish
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Speaker 2: list for an unprecedented fourth budget reconciliation package in one Congress.
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Speaker 7: Yeah. Look, if we're able to get to a fourth
13:46
Speaker 7: reconciliation package, whether it's before election day or on a
13:48
Speaker 7: lane duck or next year, I think we need to
13:51
Speaker 7: make sure our military is transformed to beat China and
13:54
Speaker 7: to make sure we're the global superpower. I think we
13:57
Speaker 7: need to restore healthcare freedom for the American people, with
14:00
Speaker 7: fully empowered health savings accounts that allow us to have
14:03
Speaker 7: a doctor patient relationship restored, so you're not dependent on
14:06
Speaker 7: insurance companies and bureaucrats and government bureaucrats telling you what
14:08
Speaker 7: to do. Thirdly, I think we need to have actual
14:11
Speaker 7: deficit reduction, not made up nonsense, not ten year spending,
14:15
Speaker 7: not stuff you hope to get. Oh trust me, we'll
14:17
Speaker 7: get the fraud stuff coming in. I want straight up
14:20
Speaker 7: mathematical deficit reduction, a strong defense, healthcare freedom. We can
14:26
Speaker 7: do some other things in there, but those are my
14:27
Speaker 7: big three, and it's got to be actual deficit reduction.
14:31
Speaker 7: Forty trillion dollars in debt. We are spending more on
14:33
Speaker 7: interest every year than we do defending our country. Our
14:36
Speaker 7: kids and grand kids depend on us getting this done. Right, reconciliation,
14:40
Speaker 7: we're having to use it for things like border patrol
14:43
Speaker 7: ice and now trying to deal with the Save Act.
14:45
Speaker 7: I get it, it's a weird political climate and we
14:48
Speaker 7: got to go win. But we need to do our
14:50
Speaker 7: job reduce deficits, and that's really at the end of
14:52
Speaker 7: the day, what reconciliation is for is to deal with debt,
14:54
Speaker 7: deficits and spending. So making sure we're reducing spending. So
14:59
Speaker 7: that's my goal.
15:01
Speaker 8: I just sense freedom.
15:02
Speaker 4: I feel freedom when you're talking, Congressman in your last
15:05
Speaker 4: months in Congress, and I hope that we can stay
15:07
Speaker 4: in touch for the rest of this one. Thank you
15:09
Speaker 4: for being with us for an honest conversation today about
15:13
Speaker 4: a wild to day on Capitol Hill.
15:14
Speaker 8: Great to see you as well. Stay with us on
15:16
Speaker 8: Balance of Power. We'll have much more coming up after this.
15:22
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15:41
Speaker 4: I'm Joe Matthew in Washington alongside Kaylee lines. We have
15:44
Speaker 4: news on clarity that might sound strange, but that is
15:48
Speaker 4: the name of the crypto bill that we have seen
15:51
Speaker 4: debate up and down for months should I say years?
15:56
Speaker 8: Kaylee, and we actually have the text.
15:58
Speaker 4: We're about to walk out with none other than Patrick
16:01
Speaker 4: McHenry because John Thune says he's planning a vote for
16:04
Speaker 4: next week. The updated bill text. This is the important part,
16:07
Speaker 4: and this is what has been shaken loose. Here would
16:10
Speaker 4: prevent federal officials and their spouses from issuing digital assets.
16:13
Speaker 4: This is the ethics language democrats have been asking for
16:17
Speaker 4: with their eyes on the Trump family.
16:19
Speaker 8: Will it be enough?
16:21
Speaker 4: Patrick McHenry, the former Republican congressman, used to chair the
16:24
Speaker 4: House Financial Services Committee, which would be managing this. He
16:27
Speaker 4: also held the gavel for some time, as you remember,
16:30
Speaker 4: Speaker pro tem. He's all ours now and it's great
16:32
Speaker 4: to see you, mister chairman. Welcome back. I don't know
16:35
Speaker 4: if you've had a chance to crank through the text.
16:37
Speaker 4: I know that you're a supporter of this bill and
16:39
Speaker 4: the need for a framework.
16:42
Speaker 8: Will this pass.
16:45
Speaker 6: Eventually? Yes, it's question of timing.
16:47
Speaker 9: It's sort of when not if, though debate right now
16:51
Speaker 9: in Capitol Hill is a lot of it. If the
16:55
Speaker 9: Democratic Party is particularly the pro crypto Democratic senators that
16:59
Speaker 9: are part of the working on the bill, have raised
17:03
Speaker 9: real concern about so called ethics language, and that pertains
17:09
Speaker 9: directly to the President and his family's financial holdings of
17:13
Speaker 9: crypto assets. What they fail to realize, and the debate
17:17
Speaker 9: right now on Capitol Hill fails to realize, is that
17:19
Speaker 9: we don't have any federal law dictating what is a
17:22
Speaker 9: digital asset, what is a means of exchange, and the
17:25
Speaker 9: legal parameters around those things.
17:26
Speaker 6: So there is currently no law on this.
17:30
Speaker 9: The best ethics language we have is actually passing the
17:32
Speaker 9: Clarity Act, so you have a clear definition, clear rules
17:35
Speaker 9: of the road, and consumer protections that come from that,
17:38
Speaker 9: as well as the ability to deploy capital here and
17:41
Speaker 9: have innovation. So the big thing here is to get
17:44
Speaker 9: the bill done. It's a question of whether or not
17:46
Speaker 9: the current politics will permit that to happen, or we
17:49
Speaker 9: have to wait longer for the Senate to come to
17:52
Speaker 9: terms with this.
17:54
Speaker 2: Your point is well taken, mister Chairman, that you actually
17:57
Speaker 2: need the market structure portion of this to be able
17:59
Speaker 2: to to find what it is that you want to
18:01
Speaker 2: restrict the president's family from doing. But on the ethics provision,
18:04
Speaker 2: because it is obviously part of this six hundred and
18:07
Speaker 2: sixteen page bill, I think it is it would stop
18:11
Speaker 2: any elected official, president included, and their spouses from issuing
18:14
Speaker 2: a digital asset. It says nothing of other members of
18:16
Speaker 2: the family, like say children of a president. It would
18:20
Speaker 2: be enforced as well by the Attorney General, by the
18:23
Speaker 2: Department of Justice, and the whole thing sunsets on inauguration
18:28
Speaker 2: Day in twenty nine. Does that really have teeth in
18:32
Speaker 2: your mind?
18:34
Speaker 9: Well, it does, because ethics rules are still ethics rules
18:39
Speaker 9: when you outsource those to another. Who do We outsource
18:42
Speaker 9: our federal government too, elections and the people. But in
18:48
Speaker 9: order to hold federal election federal officials accountable, you have
18:52
Speaker 9: to have rules within that regime. What Democratic centers want
18:56
Speaker 9: to do is hand this over to democratic state attorney generals,
19:00
Speaker 9: to states attorneys general to sue the president enforced this law.
19:06
Speaker 6: That is a recipe for disaster.
19:08
Speaker 9: And I think their own party should recognize what Republican
19:11
Speaker 9: states attorneys general would have done to a President Biden
19:15
Speaker 9: under those circumstances. This is a recipe for complete chaos.
19:19
Speaker 9: The question now is whether or not you can have
19:22
Speaker 9: enforceable ethics language and what would be sufficient to get
19:25
Speaker 9: pro crypto senators on board.
19:27
Speaker 6: Right now.
19:28
Speaker 9: Senator also Brooks has said that under no circumstances is
19:31
Speaker 9: this enough. But we have to step We have to
19:34
Speaker 9: recognize the president coming to even this language is a
19:38
Speaker 9: major concession for not just the President, the White House,
19:41
Speaker 9: in the executive branch generally.
19:44
Speaker 4: Well, this is the part of the interview where you
19:47
Speaker 4: feel happy to not be in Congress anymore.
19:50
Speaker 8: Patrick McHenry that what's about? Thank you? What's about to happen?
19:55
Speaker 4: At three point thirty we're going to vote on the NDAA.
19:58
Speaker 4: Democrats don't want any part of it, a budget resolution
20:02
Speaker 4: for reconciliation that many folks would talk to Chip Roy
20:05
Speaker 4: earlier this hour. They're even Republicans are concerned that it's
20:08
Speaker 4: not paid for. In some cases. We've got a stock
20:11
Speaker 4: trading van. Is all this going to pass?
20:15
Speaker 6: Lions and tigers and barrows?
20:17
Speaker 9: Oh my, this is a real mashup before the House
20:22
Speaker 9: leaves for August recess.
20:26
Speaker 6: Look, I wanted to say this for a while.
20:28
Speaker 9: New Gingridge always said the House is like riding a bicycle.
20:32
Speaker 9: The only way is to actually move forward. I would
20:36
Speaker 9: say it a little differently in this environment you have
20:38
Speaker 9: the Senate. In the nature of the Senate, you have
20:41
Speaker 9: old bulls sitting shoeing grass and content to sit in
20:44
Speaker 9: the sunshine. That's what the Senate does on a sort
20:47
Speaker 9: of a daily basis. In the house, the house is
20:51
Speaker 9: a lot like a border collie or a labrador or
20:55
Speaker 9: some young pop. If they're fully exercised, they're they're fine
21:01
Speaker 9: to have inside your house. If they're not fully exercised,
21:05
Speaker 9: they can be quite destructive, quite destructive. And that's what's
21:09
Speaker 9: happened with the House Republican Conference right now.
21:12
Speaker 6: For the Speaker and the leadership.
21:14
Speaker 9: This is where coups and palace intrigue persist when there's no.
21:19
Speaker 6: Action in the House.
21:21
Speaker 9: And so they had to put together an aggressive agenda
21:24
Speaker 9: in order to get aggressively out of town to save
21:29
Speaker 9: to save the House Republican Conference. That's really what we're
21:32
Speaker 9: doing right now is just running as fat that House
21:35
Speaker 9: Republican leaderships running is as fast as possible so they
21:38
Speaker 9: can get out the door and save themselves until we
21:42
Speaker 9: come back for September for more chaos.
21:44
Speaker 6: With House Republicans.
21:46
Speaker 9: And again I signed a House Republicans having my adult
21:52
Speaker 9: life working in and around it and loving these votes.
21:55
Speaker 6: But it is what it is.
21:58
Speaker 2: And I have a Labrador from puppyhood, and this analogy
22:03
Speaker 2: is really it's working for me.
22:04
Speaker 8: Mister Chairman, I understand what it is. Well, yes, that is.
22:09
Speaker 6: It's very true.
22:11
Speaker 9: House Republicans are also like Marines in that if there's
22:16
Speaker 9: a mission and something critical there on the prize, but
22:20
Speaker 9: if they're on theay but it's a Saturday night, things
22:22
Speaker 9: can get rough.
22:25
Speaker 2: Wow, we got got an email on them to take
22:29
Speaker 2: that conversation on that line the dogs. Okay, well, what
22:33
Speaker 2: about on the idea of something mission critical? I think
22:35
Speaker 2: a lot of people would argue that funding the government
22:37
Speaker 2: falls into that category. The Speaker decided that he would
22:41
Speaker 2: just try to make sure we don't shut down in
22:43
Speaker 2: September by punting until after the midterms until early December.
22:49
Speaker 2: It's unclear what's going to happen in the Senate. The
22:51
Speaker 2: Senate Majority leader is suggesting that if Democrats don't negotiate
22:55
Speaker 2: on a on a CR he's just going to attach
22:56
Speaker 2: it to budget reconciliation. Mister Chairman, is that effective killing
23:00
Speaker 2: the filibuster.
23:02
Speaker 9: That's one mechanism to kill part of the filibuster which
23:05
Speaker 9: has been eroded over the years, but it's also more
23:07
Speaker 9: of a forcing mechanism to get Chuck Schumer to the table. Look,
23:11
Speaker 9: we went through the largest longest government shutdown in American history,
23:15
Speaker 9: and it was because Chuck Schumer and Senate Democrats wouldn't
23:18
Speaker 9: give the necessary votes to pass the continuity resolution. And
23:22
Speaker 9: so I think that's where we're headed September thirtieth this year,
23:26
Speaker 9: unless leaders soon can entice Leader Schumer to pass a
23:30
Speaker 9: continued resolution. That's really what the messaging is about. And
23:34
Speaker 9: this will come to the four as September goes on,
23:38
Speaker 9: but not until then.
23:40
Speaker 8: So is this how we do it now?
23:42
Speaker 4: And I guess every other year, if there's an election
23:44
Speaker 4: coming in November, you guys better get a cr before
23:47
Speaker 4: August recess because this whole government is going to shut down.
23:49
Speaker 8: We simply can't function otherwise.
23:51
Speaker 6: That's basically where we are.
23:53
Speaker 9: The budget resolution, the nineteen seventy four budget resolution, which
23:56
Speaker 9: was asked in Senate Democrats for response to Nixon's and
24:00
Speaker 9: that's why we have this budget process has been.
24:03
Speaker 6: Broken, has been broken for thirty years.
24:06
Speaker 9: Congress has not passed all twelve appropriations bills by September thirtieth,
24:11
Speaker 9: and well since the nineteen nineties.
24:13
Speaker 6: So we have a broken.
24:15
Speaker 9: Legislative process that is further broken because we don't have
24:18
Speaker 9: great muscle memory for policymakers on how.
24:20
Speaker 6: To do this basic piece of governance.
24:23
Speaker 9: And so that means that we're in for more chaos,
24:26
Speaker 9: not less, more needless senseless political violence, not.
24:32
Speaker 6: Less.
24:35
Speaker 2: Well, it's sorry state of affairs, to be sure, mister Chairman,
24:38
Speaker 2: when we consider the notion of regular order being something
24:42
Speaker 2: difficult to.
24:43
Speaker 8: Come by these days.
24:44
Speaker 2: Hence why we're talking about a third budget reconciliation package. Now,
24:50
Speaker 2: I wonder how realistic you think the prospect is for
24:52
Speaker 2: a fourth because that's what your former colleague, Congressman ship Roy,
24:55
Speaker 2: was talking to us about. He hopes he'll get his
24:58
Speaker 2: pay for us. He's just going to wait see those
25:00
Speaker 2: pay fors until in his mind, Budget reconciliation four point
25:04
Speaker 2: zero is there a real chance of that.
25:06
Speaker 9: Again, again, this is about the House staying in motion,
25:10
Speaker 9: and as long as you stay in motion, you can
25:12
Speaker 9: stave off palace and trigger coups. And that is what
25:15
Speaker 9: this reconcilation four point zero or whatever we're going to
25:19
Speaker 9: call it. But also when you hear policymakers talk about
25:23
Speaker 9: a fourth iteration when they can't get the third iteration done,
25:26
Speaker 9: it makes me question what medicines they are on, and
25:30
Speaker 9: whether or not these psychedelics are in fact now close
25:34
Speaker 9: to FTA approval, whether or not they are already in
25:37
Speaker 9: pre drug trial. Here, it's absurd to talk about this,
25:40
Speaker 9: especially in an election year, this late in an election year.
25:43
Speaker 9: It's one of the more bizarre things I've heard out
25:45
Speaker 9: of a really bizarre political year we've had in Washington.
25:51
Speaker 8: Wow, this is the best passage.
25:52
Speaker 6: I'm saying.
25:53
Speaker 9: There is no chance of a reconciliation four point zero,
25:57
Speaker 9: not even the slim.
25:57
Speaker 4: I understood, all right, putting the psychedelics down. I thought
26:03
Speaker 4: of you when I did you see this Gallup poll
26:05
Speaker 4: this morning. We can talk about the vote all day long,
26:08
Speaker 4: but this is we're getting right down to it here.
26:10
Speaker 4: Americans are the most likely to name politics as a
26:13
Speaker 4: threat to their safety, mister Chairman. The latest pullding by
26:16
Speaker 4: Gallup identifies one in ten Americans saying politics is the
26:19
Speaker 4: greatest source of risk to their personal safety. More than
26:24
Speaker 4: half of American adults believe the government does not care
26:27
Speaker 4: about them a record high.
26:29
Speaker 8: Aren't we seeing a reflection of this?
26:31
Speaker 6: We're seeing in our House of Representatives?
26:34
Speaker 9: We are yet these American people that have this fielding
26:38
Speaker 9: vote in these people. This tells me that populism is
26:42
Speaker 9: not some sort of President Trump phenomenon. That popularism is
26:48
Speaker 9: going to continue to rise in the American politics because
26:50
Speaker 9: of these very because of that very.
26:53
Speaker 6: Explanation you just gave.
26:55
Speaker 9: When you look at the elected officials and say they
26:57
Speaker 9: don't care about me, and they're a source of my problem,
27:00
Speaker 9: not a part of my solution, You're going to see
27:03
Speaker 9: unrest that'll be vividly displayed in not just the primaries
27:09
Speaker 9: that we have continued throughout this election year, but in
27:12
Speaker 9: the midterms and then going into the nomination process for
27:16
Speaker 9: both parties, the presidential nomination process it will start next year.
27:23
Speaker 8: I can't wait for that.
27:24
Speaker 2: Just to end the interview on a more more optimistic though,
27:29
Speaker 2: perhaps for yourself, mister chairman, If market structure finally happens,
27:32
Speaker 2: if clarity can get through ethics provisions included, what else
27:38
Speaker 2: does the crypto industry need in terms of legislation they
27:42
Speaker 2: fought for the stable going legislation. They've long fought for
27:45
Speaker 2: market structure.
27:46
Speaker 6: What's next tax provisions.
27:49
Speaker 9: We have to have clarity owner tax law on what
27:51
Speaker 9: these digital assets are and what the holding periods are.
27:55
Speaker 9: We had to define these things for commodities and for securities,
27:58
Speaker 9: and likewise we want to do that for digital assets.
28:00
Speaker 9: In the nature of a stable coin, for instance, it
28:04
Speaker 9: should be treated in a similar fashion you have for
28:07
Speaker 9: your bank deposits and an interest derived from bank deposits
28:12
Speaker 9: as a tax measure. And so then we have to
28:16
Speaker 9: define what's the holding period for these digital assets and
28:19
Speaker 9: what a capital gain structure would look like. So there's
28:22
Speaker 9: a lot of work to do on that front, and
28:24
Speaker 9: then the regulatory process will be ongoing as a result
28:27
Speaker 9: of Clarity acts as well for the next year or two.
28:31
Speaker 2: All Right, the former chair of the House Financial Services
28:33
Speaker 2: Committee and now, of course Bloomberg Politics contributor Patrick McHenry.
28:37
Speaker 4: Stay with us on Balance of Power. We'll have much
28:39
Speaker 4: more coming up after this.
28:44
Speaker 1: You're listening to the Bloomberg Balance of Power podcast. Catch
28:48
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28:51
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28:55
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29:01
Speaker 8: Glad you joined us.
29:02
Speaker 4: It's the Wednesday edition and we're live on Bloomberg Radio
29:04
Speaker 4: on satellite radio channel one twenty one and watching us
29:07
Speaker 4: always on YouTube search Bloomberg Business News Live with our
29:11
Speaker 4: eyes on the markets, and the price of a barrel
29:14
Speaker 4: of oil ever higher, up over two percent for WTI
29:18
Speaker 4: and Brent today we're looking at eighty six and ninety
29:20
Speaker 4: three respectively. And as we were just discussing with the lawmakers,
29:24
Speaker 4: really fascinating series of interviews in the Senate last evening.
29:26
Speaker 4: By the way, we're going back up there tonight. Can
29:29
Speaker 4: we get a list of slotkin on the line. We're
29:31
Speaker 4: going to keep doing this as often as we can
29:33
Speaker 4: as we figure out these votes. We've got the cr
29:35
Speaker 4: in the House today. We've also got reconciliation, and so
29:40
Speaker 4: when you factor in the supplemental budget requests for Iran,
29:43
Speaker 4: things start to get pretty complicated. The price for a
29:47
Speaker 4: gallon of gasoline where I was going here four dollars
29:50
Speaker 4: and six cents. How about diesel five dollars and eighteen cents?
29:55
Speaker 4: They say the economy runs on diesel, right, And if
29:58
Speaker 4: you run the Port of lif Long Beach. That's a
30:01
Speaker 4: pretty important part of the equation because once the goods
30:03
Speaker 4: come in, they need diesel to go out. And this
30:06
Speaker 4: is going to be part of our conversation with the
30:09
Speaker 4: man who runs the Port of Long Beach. Doctor Noel
30:11
Speaker 4: Hasegaba is with us in studio right now, and doctor,
30:14
Speaker 4: it's great to see you.
30:14
Speaker 8: Welcome to Bloomberg's TV and Radio.
30:16
Speaker 10: Thanks for having me pleasure to join you.
30:17
Speaker 8: Joe.
30:18
Speaker 4: I want to talk about a lot of things, including
30:20
Speaker 4: price pressures, including your port as a barometer of our economy,
30:24
Speaker 4: which is fascinating to talk to the likes of your self,
30:26
Speaker 4: Regene Soroca frequently more accurate anecdotal evidence than we ever
30:31
Speaker 4: get out.
30:32
Speaker 8: Of a data set.
30:34
Speaker 4: But I want to start with something that you're introducing,
30:37
Speaker 4: and this is a new idea and the reason why
30:39
Speaker 4: you're in town here.
30:40
Speaker 8: I believe you just came from the Department of Transportation.
30:42
Speaker 4: It's correct to talk about as we look at the
30:44
Speaker 4: cost of diesel jet fuel, the price that it costs
30:48
Speaker 4: to take goods from Asia to your port. There's a
30:52
Speaker 4: new idea as we look for alternatives, and it's nuclear
30:55
Speaker 4: small modular reactors on a boat.
30:58
Speaker 8: How close to reality?
30:59
Speaker 10: Is this what we took the first step today.
31:02
Speaker 11: This memorandum of cooperation with the Maritime Administration is really
31:06
Speaker 11: the first of its kind. And what it does, Joe,
31:09
Speaker 11: is it establishes a framework for the proper agencies at
31:13
Speaker 11: the federal level to start having conversations with a port
31:16
Speaker 11: like ours, a major national asset, and our partners in
31:19
Speaker 11: the private sector to look at ways to introduce SMR
31:23
Speaker 11: technology in a safe and reliable fashion.
31:26
Speaker 10: Look, you described it very well.
31:28
Speaker 11: Everything that's going on in the energy market, the cost
31:32
Speaker 11: of fuel and the uncertaincy surrounding that is strengthening the
31:37
Speaker 11: case for energy diversification. Now's the right time for us
31:40
Speaker 11: to explore nuclear energy.
31:42
Speaker 4: We talk about these small reactors pretty frequently when it
31:46
Speaker 4: comes to data center, right, that's the future of AI.
31:49
Speaker 8: How you get them off the grid?
31:50
Speaker 4: You put a little reactor right there at the plant
31:53
Speaker 4: and everybody's happy. We've heard about the US Navy for
31:58
Speaker 4: years for generations using nuclearcraft carriers and submarines. Putting this
32:02
Speaker 4: on commercial vessels raises a lot of questions. Who's responsible
32:06
Speaker 4: for this. It's not a military operation any longer. What
32:08
Speaker 4: if a boat sinks could this be a target? How
32:11
Speaker 4: do you answer those questions?
32:13
Speaker 11: These are all great questions, and they are questions that
32:15
Speaker 11: need to be asked and answered. And one of the
32:18
Speaker 11: reasons why we decided to join this memorandum of cooperation
32:22
Speaker 11: now is because there are a lot of questions that
32:24
Speaker 11: need to be answered and safety is at the top
32:27
Speaker 11: of the list. Right when it comes to safety, there's
32:30
Speaker 11: no calendar, and so we thought it was important to
32:33
Speaker 11: start the conversation, bringing the agencies and the partners in
32:37
Speaker 11: the private sector to start thinking through some of these scenarios.
32:41
Speaker 10: The reality is, when.
32:42
Speaker 11: You look at nuclear it's a carbon free energy source.
32:47
Speaker 11: It's already been used in different sectors and industries around the globe.
32:51
Speaker 11: What we're trying to answer through this MOC with Mayrad
32:54
Speaker 11: is how do we introduce it in a safe, reliable fashion.
32:57
Speaker 11: And let's not forget the portalm Beach is one of
32:59
Speaker 11: eighteen commercial strategic seaports, so we're already an asset for
33:03
Speaker 11: the US government in the event of any military activity.
33:07
Speaker 11: So it just makes perfect sense for US, a leading port,
33:10
Speaker 11: a major gateway, and a commercial strategic seaport, to be
33:13
Speaker 11: the first port to enter into this type of cooperation.
33:16
Speaker 4: Well, it's interesting that it's coming from you, the port,
33:19
Speaker 4: not a commercial shipping line, not a ship builder. This
33:22
Speaker 4: is a pretty entrepreneurial move for you, is it not.
33:24
Speaker 11: Well, you know, the Port of Long Beach has been
33:26
Speaker 11: around for about one hundred and fifteen years. But in
33:28
Speaker 11: order for us to stay competitive, we have to think
33:31
Speaker 11: like a startup. That's exactly what we're doing. What got
33:33
Speaker 11: us here isn't going to get us there. And this
33:34
Speaker 11: is why in January I launched our new twenty fifty
33:37
Speaker 11: vision and our plan, Joe, is very simple. We want
33:39
Speaker 11: to double our container throughput to twenty million container units
33:43
Speaker 11: and build a port of the future in the process,
33:45
Speaker 11: a port that's going to be clean. And we're also
33:48
Speaker 11: leveraging partnerships. For example, blue Core, which is a startup
33:52
Speaker 11: that just entered into a lease with the Port of
33:54
Speaker 11: Long Beach. They're the ones who are doing the R
33:56
Speaker 11: and D behind this technology, and they're the ones who
33:59
Speaker 11: are going to be working with the Port, with MERET
34:01
Speaker 11: and the other federal agencies to make sure that we
34:04
Speaker 11: do this reliably and safely.
34:06
Speaker 4: When you look around the world right now and consider
34:09
Speaker 4: what's happening in the Strait of hord moves, what might
34:11
Speaker 4: be happening in the Red Sea.
34:12
Speaker 8: It raises so many.
34:13
Speaker 4: Questions about technology, like this, could you take a nuclear
34:16
Speaker 4: powered ship through the Strait?
34:18
Speaker 10: Well, it's a great question. I want to do that
34:20
Speaker 10: right now.
34:21
Speaker 11: But when you consider the advantages of what this energy
34:25
Speaker 11: source offers, it's worth exploring. That's what this MOC is
34:28
Speaker 11: all about. It's asking those questions. Bring in the experts,
34:32
Speaker 11: bring in the agencies, making sure that it's introduced in
34:35
Speaker 11: a safe and reliable fashion.
34:37
Speaker 4: I want to hear where this goes, and I think
34:38
Speaker 4: our audience will be fascinated to learn as well. They're
34:41
Speaker 4: massive economic implications here.
34:44
Speaker 8: Just like the ones we're dealing with now.
34:45
Speaker 4: The reason we're having this conversation as we started out
34:48
Speaker 4: is because of the price pressures that we're feeling from overseas,
34:50
Speaker 4: and I'm wondering to what extent, if any, that is
34:53
Speaker 4: impacting business in terms of traffic at the port and
34:57
Speaker 4: just the conversations you're having with ship ors right now.
35:00
Speaker 8: We are enduring this.
35:01
Speaker 10: Well, it's interesting.
35:02
Speaker 11: The impact is felt, and it's felt first at the pump,
35:06
Speaker 11: but it cascades across the transportation network because so much
35:09
Speaker 11: of the cost involved in transporting goods from port to
35:13
Speaker 11: port and once it arrives at destination, from endpoint to endpoint,
35:18
Speaker 11: it requires that fuel. But surprisingly, Joe, the resilience of
35:23
Speaker 11: the American consumer, the resilience of the supply chain. Here
35:26
Speaker 11: we are in the middle of the soaring fuel costs,
35:30
Speaker 11: and yet at the port of Long Beach we're ahead
35:32
Speaker 11: of a record run last year. Through the first half
35:35
Speaker 11: of twenty twenty six, we're actually two percentage points ahead
35:37
Speaker 11: of last year. And last year was a record year
35:39
Speaker 11: for US, And a lot of it is because shippers
35:42
Speaker 11: are trying to hedge their bets. They're trying to mitigate
35:45
Speaker 11: the uncertainty of additional tariffs or additional soaring fuel costs,
35:51
Speaker 11: and they're advancing their shipments. And like you said a
35:53
Speaker 11: moment ago, traditionally portslike cars have been pretty good barometers
35:57
Speaker 11: of what's going to happen to the across the economy
36:00
Speaker 11: in the months ahead.
36:00
Speaker 4: Well, that's encouraging, considering new tariffs are coming and this
36:05
Speaker 4: is the time when the holiday season is set. Right,
36:08
Speaker 4: what happens in July and August will pay off in
36:12
Speaker 4: November and December. What kind of a holiday season will
36:15
Speaker 4: we have based on the currents that you're seeing now.
36:17
Speaker 10: We've already begun to see holiday.
36:20
Speaker 11: Gifts arrive into our port and that's something it's I mean.
36:24
Speaker 8: We're not going to miss the season.
36:26
Speaker 11: In past years there is concern whether or not folks
36:29
Speaker 11: were going to have access to the hottest toys.
36:31
Speaker 10: They're already here.
36:32
Speaker 11: And that's the remarkable thing about these you know, whether
36:37
Speaker 11: it's fuel costs or whether it's some of the uncertainly
36:39
Speaker 11: surrounding trade policy, it's enticed everyone to advancor shipments.
36:44
Speaker 8: That's really encouraging.
36:45
Speaker 4: I think for a lot of people who are listening
36:46
Speaker 4: right now, talk to me about the other end of things.
36:49
Speaker 4: When you have trucks lining up and they're paying over
36:51
Speaker 4: five dollars a gallon for diesel, does that impact business
36:55
Speaker 4: or are these businesses swallowing that cost right now?
36:57
Speaker 8: Are they passing it on?
36:58
Speaker 10: It's a mix.
37:00
Speaker 11: Most businesses absorb some of it pass on to some
37:02
Speaker 11: of the consumers.
37:03
Speaker 8: At the transportation like JB. Hunt. I mean, these stocks
37:05
Speaker 8: are at all time highs. They're printing money.
37:07
Speaker 11: It looks like well they are, But affordability continues to
37:09
Speaker 11: be an issue now, not just for policy makers, but
37:12
Speaker 11: for operators like us, and it's important for us to
37:15
Speaker 11: keep an eye on that because at a certain point
37:18
Speaker 11: that resilience, that resilience muscle is not going to be
37:21
Speaker 11: able to stretch to that degree. So this is why
37:23
Speaker 11: again I say, what is happening right now in the
37:26
Speaker 11: energy market is strengthening the case for energy diversification. This
37:29
Speaker 11: is why this historic memorative cooperation with a maritime administration
37:34
Speaker 11: makes a ton of sense.
37:35
Speaker 4: How's your labor force in terms of the port itself
37:38
Speaker 4: and drivers? This was a real concern coming out of COVID.
37:41
Speaker 4: How do we get enough drivers even if the goods
37:43
Speaker 4: make it to port, to get them around the country.
37:45
Speaker 10: Our workforce are the true heroes.
37:47
Speaker 11: They're the ones who move the containers, They're the ones
37:49
Speaker 11: who power our port. And right now we have a
37:51
Speaker 11: very healthy and robust workforce. They show up during COVID,
37:55
Speaker 11: they masked up and we never had to close a
37:58
Speaker 11: single shift. So it's a testament to the resilience of
38:02
Speaker 11: our workforce as well.
38:03
Speaker 4: What's the timeline getting back to where we started on
38:06
Speaker 4: small nuclear reactors getting on ships?
38:09
Speaker 8: Do you have one or is it impossible to tell?
38:10
Speaker 8: Right now? It's this five years ten years away.
38:13
Speaker 11: You know, I can't tell you exactly when it's going
38:15
Speaker 11: to happen, but what I can tell you is this
38:17
Speaker 11: MOC sets the path forward for us to have those
38:20
Speaker 11: conversations that need to be had. We have willing partners
38:22
Speaker 11: in the private sector who are going through the R
38:25
Speaker 11: and D right now. We're bringing in the experts and
38:28
Speaker 11: again we're going to do this safely and reliably.
38:31
Speaker 8: Is this administration the reason why this is happening now?
38:34
Speaker 3: You know?
38:35
Speaker 4: There seems to have been an embrace of nuclear that
38:37
Speaker 4: didn't exist before.
38:38
Speaker 10: SMR has been around for the last ten years.
38:41
Speaker 11: Nuclear power has been around, as you mentioned the US
38:44
Speaker 11: Navy as a matter of fact, a fun fact, the
38:46
Speaker 11: very first warcraft VESTL to used nuclear power was a USS.
38:51
Speaker 10: Long Beach in the nineteen sixties.
38:53
Speaker 11: Right, Yes, it's been around for a while, but again
38:55
Speaker 11: it's the application and the adoption. If we can introduce
38:59
Speaker 11: this technology in a safe and reliable fashion, I think
39:02
Speaker 11: there will be a lot of advantages.
39:03
Speaker 4: Would this be like an aircraft carrier or a submarine
39:06
Speaker 4: where you'd have in this case mayrisk would put a
39:09
Speaker 4: cargo vessel on the water and be out there for
39:11
Speaker 4: a year.
39:11
Speaker 11: Well, Right now, our partner Blue Court is looking at
39:14
Speaker 11: how we could leverage SMR to power commercial vessels. Yeah,
39:17
Speaker 11: that's the beginning phase. Where it goes from there will
39:20
Speaker 11: depend largely on how we develop the safety protocols, the
39:25
Speaker 11: operational standards and make sure that this technology is adopted
39:29
Speaker 11: and implemented safely and reliable.
39:31
Speaker 4: Well, we'd love to stay in touch with you on
39:32
Speaker 4: this as you get closer. Next time you're on Washington,
39:35
Speaker 4: come and see us doctors. We'd be happy to do
39:36
Speaker 4: it on a number of issues, from the economy to
39:38
Speaker 4: the future of nuclear on the open seas. Really fascinating conversation,
39:43
Speaker 4: as we promised with the doctor. He's the Port of
39:45
Speaker 4: Long Beach CEO, Noel Hasegaba with us here exclusively on
39:50
Speaker 4: Bloomberg TV and Radio. Thanks for listening to the Balance
39:56
Speaker 4: of Power podcast. Make sure to subscribe if you haven't already, Apple,
40:00
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40:06
Speaker 4: Eastern at Bloomberg dot com.