Latest / Balance of Power / Anthropic Says AI Model Claude Being Misused for Weapons Research
Transcript
- 0:02Speaker 1: Bloomberg Audio Studios.
- 0:04Speaker 2: Podcasts.
- 0:05Speaker 3: Radio.
- 0:06Speaker 4: News.
- 0:09Speaker 5: You're listening to the Bloomberg Balance of Power podcast. Catch
- 0:12Speaker 5: us live weekdays at noon and 5 p.m. Eastern on
- 0:15Speaker 5: Apple CarPlay and Android Auto with the Bloomberg Business app.
- 0:19Speaker 5: Listen on demand wherever you get your podcasts or watch
- 0:22Speaker 5: us live on YouTube.
- 0:25Speaker 6: A big story, Christina, throughout the week here has been
- 0:28Speaker 6: anxiety over artificial intelligence, as a number of companies in
- 0:31Speaker 6: recent weeks have allowed in posts and reports, that there
- 0:36Speaker 6: have been moments when their technology was not operating the
- 0:39Speaker 6: way that it was supposed to, and that sparked a
- 0:40Speaker 6: lot of kind of fears about, I should say, apocalyptic
- 0:44Speaker 6: fears about what this technology was.
- 0:46Speaker 3: Could do.
- 0:46Speaker 6: We heard from the CEO of Bridgewater on the Odd
- 0:48Speaker 6: Lots podcast, Greg Jensen. He talked about sort of what
- 0:51Speaker 6: it might take here, excuse me, the CIO of Bridgewater,
- 0:54Speaker 6: Greg Jensen, talking a bit about sort of what it
- 0:56Speaker 6: will take for Americans and for policymakers to sort of
- 0:58Speaker 6: wake up to the threats of this technology.
- 1:02Speaker 7: Unfortunately, this is like what it was like in February 2020.
- 1:04Speaker 8: Until the AI starts killing people, unfortunately, history would suggest.
- 1:10Speaker 7: We're not going to do anything. But we are going
- 1:12Speaker 7: to face that.
- 1:13Speaker 8: That's going to happen, and it'd be much better if
- 1:16Speaker 8: we started dealing with it before then. And you can
- 1:22Speaker 8: do it, right? It's also not hopeless.
- 1:25Speaker 9: All right. To guide us through this hopelessness, we've got
- 1:28Speaker 9: Mike Shepard, Bloomberg Senior Editor for Technology and Strategic Industries.
- 1:34Speaker 1: Mike, what is the deal here? Because we've got some
- 1:36Speaker 1: mixed messaging.
- 1:37Speaker 9: You have some big warning signs going up from employees,
- 1:40Speaker 9: former employees, experts, but then you have a top Pentagon
- 1:43Speaker 9: official kind of pushing back against these rising fears and saying,
- 1:46Speaker 9: you know, we can handle this.
- 1:47Speaker 1: We have guardrails. We know what we're doing. Where is
- 1:50Speaker 1: the truth and is it somewhere in the middle?
- 1:52Speaker 2: I think we're still trying to find that truth. And
- 1:55Speaker 2: everybody is trying to make sense, Christina, of where the
- 1:59Speaker 2: conversation on AI and AI risk is. is ultimately going
- 2:04Speaker 2: to take us. We heard from Greg Jensen earlier saying
- 2:08Speaker 2: that there really might have to be even catastrophic loss
- 2:13Speaker 2: of life to impel Congress or other policymakers to take
- 2:17Speaker 2: steps to really address these risks fully. And it's a
- 2:21Speaker 2: dire sounding warning. And yet we also hear on the
- 2:24Speaker 2: other side of the debate, the administration here in Washington
- 2:29Speaker 2: really dismissing many of those concerns.
- 2:32Speaker 10: A senior Pentagon.
- 2:32Speaker 2: Official just yesterday, Emil Michael, who has led negotiations with
- 2:37Speaker 2: Anthropic over safeguards the company wanted on military use of
- 2:42Speaker 2: its tools and really fought against those extra terms that
- 2:47Speaker 2: Anthropic had sought. He said yesterday, look, a lot of
- 2:50Speaker 2: this doomsaying is just talk. He was dismissive of it.
- 2:54Speaker 2: And he said that the free market and that industry-wide
- 2:57Speaker 2: collaboration would work to mitigate a lot of the perils
- 3:01Speaker 2: that people have been talking about.
- 3:03Speaker 6: Mike, I know we want to ask you about Jacob
- 3:04Speaker 6: Coxon's Twitter thread, which really gained a lot of steam
- 3:07Speaker 6: over the course this week. He's a former employee of
- 3:10Speaker 6: OpenAI and Anthropic. But let me just ask you a
- 3:12Speaker 6: bit more about the report that we've been talking about
- 3:14Speaker 6: here that Anthropic released. And just to quote a little
- 3:17Speaker 6: bit from it, I think the headline is, over the
- 3:19Speaker 6: past eight months, our threat intelligence team identified and disrupted
- 3:22Speaker 6: operations in which threat actors tried to use Claude for
- 3:25Speaker 6: malicious activity. Put that into some context here, because as
- 3:29Speaker 6: I mentioned at the top of the show, Mike, it
- 3:30Speaker 6: does seem like there has been a steady drip here
- 3:32Speaker 6: of admissions, for lack of a better word from these companies,
- 3:36Speaker 6: that the horse is more out of the barn than
- 3:38Speaker 6: I think they and a lot of us thought.
- 3:41Speaker 2: And that is a good way to put it, really,
- 3:43Speaker 2: because we have seen reports from companies, not only Anthropic,
- 3:48Speaker 2: but also OpenAI, disclosing rather transparently, look, some of this
- 3:54Speaker 2: technology has escaped beyond our control. And we can think
- 3:57Speaker 2: of the recent hack on Hugging Face by some models
- 4:02Speaker 2: being developed by OpenAI that were in a secure testing
- 4:06Speaker 2: environment that it had their guardrails removed, but the models
- 4:10Speaker 2: acted on their own communicating with other AI agents being
- 4:14Speaker 2: developed by OpenAI, and they escaped that secure testing environment
- 4:18Speaker 2: and went on to hack Hugging Face. And in this case,
- 4:22Speaker 2: there was no human in the loop, not only directing them,
- 4:25Speaker 2: but really even present to stop them in the act.
- 4:29Speaker 2: And that is the, you know, ultimate concern here, that
- 4:32Speaker 2: there could eventually be a super intelligence, and this is
- 4:35Speaker 2: a warning from Silicon Valley, and really the one that
- 4:38Speaker 2: Jacob Cox and raised in his departure tweet from Anthropic
- 4:43Speaker 2: that this kind of advanced intelligence and AI beyond human
- 4:49Speaker 2: control carries this enormous risk. And more specifically to Anthropic's report, David,
- 4:55Speaker 2: what they were highlighting are the very specific kinds of
- 4:58Speaker 2: risks that we could see. And that is this technology
- 5:01Speaker 2: could be used to enhance the use of missiles even
- 5:05Speaker 2: by foreign adversaries.
- 5:07Speaker 10: It could be used to craft bioweapons.
- 5:10Speaker 2: It could be used to wage cyber attacks or launch
- 5:12Speaker 2: disinformation campaigns. And they went through, chapter and verse, some
- 5:16Speaker 2: of the examples that they had seen already out in
- 5:18Speaker 2: the real world about misuse of anthropics technology.
- 5:23Speaker 9: It seems to me what's really driving this kind of
- 5:26Speaker 9: without top-down pessimism safeguards is this battle with China, right?
- 5:31Speaker 9: Once China became really competitive in this field, the argument
- 5:33Speaker 9: from a lot of AI supporters is, look, if we
- 5:36Speaker 9: don't do this, if we slow ourselves down and put
- 5:38Speaker 9: guardrails about it and sit and think about how we
- 5:40Speaker 9: should best utilize this technology, China is going to go
- 5:43Speaker 9: full speed ahead and then we're going to be behind.
- 5:45Speaker 9: How is the industry, how are observers, how are people
- 5:48Speaker 9: like you looking at that balance and where we're going
- 5:50Speaker 9: to come out?
- 5:52Speaker 2: Well, that is certainly one of the arguments that the
- 5:54Speaker 2: top industry developers, including OpenAI and Anthropic, have made when
- 5:59Speaker 2: confronted with the challenge. Well, look, this technology is so powerful.
- 6:04Speaker 2: Should we slow the roll? Part of the answer back
- 6:06Speaker 2: has been, look, we need to get there first because
- 6:09Speaker 2: we are the only ones who can handle it responsibly
- 6:12Speaker 2: and safely. And if we let, heaven forbid, an adversary
- 6:17Speaker 2: like a company in China develop it ahead of us,
- 6:20Speaker 2: we don't know what kind of guardrails could be put
- 6:23Speaker 2: in place, if any at all, by a company or
- 6:26Speaker 2: an entity backed by an adversary like China. And that's
- 6:29Speaker 2: an argument that we've heard Anthropic CEO Dario Amadei make
- 6:33Speaker 2: over and over again, and he has even barred his
- 6:36Speaker 2: company's products from being used in China. And the China
- 6:39Speaker 2: question is also one that President Donald Trump himself has
- 6:43Speaker 2: raised when asked about whether there should be more guardrails
- 6:47Speaker 2: in place and whether there is an existential risk latent
- 6:51Speaker 2: somewhere in AI development. That question was put to him
- 6:55Speaker 2: last night by our colleague Jeff Mason in Dallas as
- 6:59Speaker 2: the president was preparing to return to Washington. And the
- 7:02Speaker 2: president said, no, I am not concerned about AI risk
- 7:05Speaker 2: in an existential way. But he said, I am concerned, however,
- 7:10Speaker 2: about China somehow gaining on us. And he really stressed
- 7:14Speaker 2: the importance of maintaining that lead over China. And the context,
- 7:17Speaker 2: of course, is that, you know, within weeks, his Chinese counterpart,
- 7:21Speaker 2: Xi Jinping, will be here in Washington for a summit.
- 7:24Speaker 10: And AI will be at the top of the agenda there.
- 7:27Speaker 9: Oh, I'm certainly going to be on that meeting. Mike Shepard,
- 7:30Speaker 9: our senior editor for technology and strategic engineering.
- 7:33Speaker 10: Industries.
- 7:34Speaker 9: I don't seem to want to say the rest of
- 7:35Speaker 9: your title today. Mike, I'm so sorry. Always nice to
- 7:37Speaker 9: see you.
- 7:37Speaker 11: Industries.
- 7:38Speaker 1: I can do it. I promise this is my job.
- 7:40Speaker 1: Everything's going great.
- 7:41Speaker 6: And Mike has such a good vantage on the way
- 7:43Speaker 6: that this is kind of reverberating around Washington, D.C., and
- 7:45Speaker 6: it does feel like, as we've all kind of woken
- 7:47Speaker 6: up to this, lawmakers have as well. So something well
- 7:49Speaker 6: worth following here in the weeks and months ahead. I
- 7:51Speaker 6: want to bring now Rick Davis, partner at Stonecourt Capital,
- 7:54Speaker 6: Bloomberg Politics contributor, and Jeannie Sheehan-Zainer joining us as well,
- 7:57Speaker 6: Democracy Visiting Fellow at the Harvard Kennedy School's Ash Center.
- 7:59Speaker 6: She also a Bloomberg Politics contributor.
- 8:01Speaker 8: Contributor.
- 8:02Speaker 6: Rick, let me go to you first on this and
- 8:04Speaker 6: pick up on what I was just saying there a
- 8:05Speaker 6: moment ago. It does seem we're at a moment now where, yes,
- 8:08Speaker 6: investors are feeling a bit anxious about the state of
- 8:11Speaker 6: this technology today and where it might be headed. I'm
- 8:14Speaker 6: curious if you see it kind of changing the way
- 8:16Speaker 6: that lawmakers and policymakers are talking about this technology. We
- 8:20Speaker 6: heard Mike Shepard referencing Emile Michael, the Pentagon official there
- 8:24Speaker 6: just a moment ago. He cautioning us to kind of
- 8:27Speaker 6: keep a level head here and not become kind of
- 8:29Speaker 6: doomers when we look at AI.
- 8:30Speaker 3: Yeah.
- 8:31Speaker 12: Yeah, I think it's really interesting, Shepard's comments about this
- 8:37Speaker 12: being focused on the technology, because in Washington, it is
- 8:40Speaker 12: a technology discussion. You have a lot of members really
- 8:44Speaker 12: trying to grapple with what the unique economic, societal, and
- 8:49Speaker 12: security threats are to this incredible technology. But when you
- 8:53Speaker 12: get outside the Beltway, and you don't have to get
- 8:56Speaker 12: very far outside the.
- 8:57Speaker 10: Beltway, because Virginia is one of the largest, if not.
- 9:00Speaker 12: The largest, data center in locations in the country, and
- 9:04Speaker 12: it's all about data centers. You don't see in a
- 9:07Speaker 12: political discussion the potential impacts of AI on our society
- 9:13Speaker 12: or on our security, but you do hear an enormous amount,
- 9:17Speaker 12: and it is a growing chorus of concerns about the
- 9:21Speaker 12: impact of the data center, water, energy, and other features
- 9:27Speaker 12: of on the communities that are supporting this technology. And
- 9:30Speaker 12: so on one hand, you get outside the Beltway, it's
- 9:33Speaker 12: a data center debate. On the other hand, you get
- 9:35Speaker 12: inside the city of New York or Washington, and you're
- 9:38Speaker 12: hearing all about concerns about an AI technology without bumpers.
- 9:45Speaker 9: And it's become a really interesting kind of sleeper issue
- 9:47Speaker 9: that we're now starting to see come to fruition ahead
- 9:49Speaker 9: of the midterms because Obviously, these politicians want to show
- 9:52Speaker 9: that they're creating jobs, they're creating growth, that there's opportunity
- 9:55Speaker 9: here for big investments, for blue collar workers to build
- 9:58Speaker 9: these data centers, but more and more polls are showing
- 10:01Speaker 9: people don't really want these and they certainly don't want
- 10:03Speaker 9: them in their community.
- 10:04Speaker 1: There's a new Reuters Ipsos poll that.
- 10:06Speaker 9: Shows 45% of those asked said they don't want these
- 10:10Speaker 9: data centers in their community. but 59% don't want it
- 10:14Speaker 9: within 10 miles of their home.
- 10:16Speaker 1: Jeannie, what does that tell you?
- 10:18Speaker 9: And if you were running for your seat again in November,
- 10:21Speaker 9: how would you navigate this?
- 10:23Speaker 10: First of all, can I just thank you guys?
- 10:25Speaker 4: That last hour, particularly when you had Lisa and Charlie
- 10:29Speaker 4: on with those memories of 9-11, was riveting. I had
- 10:33Speaker 4: to message Charlie and tell him how moved I was
- 10:36Speaker 4: by his comments. It was just riveting. In terms of
- 10:40Speaker 4: the data centers, yeah, this has been the sleeper issue
- 10:43Speaker 4: of the campaign today. And I think it's caught many
- 10:46Speaker 4: Republicans on the back foot. You had, as you mentioned, Christina,
- 10:52Speaker 4: you had Donald Trump coming out with a full-throated embrace
- 10:56Speaker 4: of data centers, talking about the innovation, talking about the
- 11:00Speaker 4: monetary benefits. But the American public, and I think this
- 11:04Speaker 4: is not just about data centers, by the way, I
- 11:07Speaker 4: think it's a proxy for all kinds of concern about
- 11:11Speaker 4: Everything tech writ large in our lives, from billionaire tech
- 11:15Speaker 4: people to flock cameras to data centers to AI, which
- 11:19Speaker 4: you were just talking to Mike about, people are so
- 11:23Speaker 4: frustrated and so concerned about what this means for them.
- 11:26Speaker 4: And data centers coming in your neighborhood or, Christina, as
- 11:30Speaker 4: you mentioned, 10 miles down the road, that's something that
- 11:32Speaker 4: people can stand up and say, you know what, we've
- 11:35Speaker 4: had enough. And so that's why we've seen Republicans at
- 11:38Speaker 4: the local and state level like Governor DeSantis or like
- 11:41Speaker 4: Governor Abbott. And a little late to the game, you
- 11:44Speaker 4: see Ken Paxton coming out and saying, you know what,
- 11:47Speaker 4: we're going to take a step back from this because
- 11:49Speaker 4: they know how wildly unpopular this is with their constituents. 60,
- 11:54Speaker 4: 60 days out of the midterm.
- 11:57Speaker 6: Rick, I want to spend a few minutes here talking
- 11:59Speaker 6: about this midterm convention that just took place. And, you know,
- 12:02Speaker 6: I can imagine that Susie Wiles and others told the president, look,
- 12:05Speaker 6: focus on these kitchen table issues, which are clearly so
- 12:07Speaker 6: important to so many Americans, maybe try to cater more
- 12:10Speaker 6: to the independents, a broader, that go broader than just
- 12:13Speaker 6: the base. I'm looking in my inbox here and a
- 12:15Speaker 6: press release just came through from NBC News. And Christine
- 12:18Speaker 6: Romans evidently had an interview with Howard Lutnick, the Commerce Secretary,
- 12:22Speaker 6: who told her this $ 5, 000 Trump dividend, as it's been branded, quote,
- 12:27Speaker 6: it's not tax money. He said the administration could earn
- 12:30Speaker 6: the money that Donald Trump wants to pay out, not
- 12:32Speaker 6: from the deficit and not from taxpayers. What do you
- 12:35Speaker 6: make of that? I mean, this is the headline from
- 12:37Speaker 6: this two-day event now. People are talking about this. And
- 12:39Speaker 6: it's one of these moments where it seems as though
- 12:41Speaker 6: the president very easily could have just thrown this out.
- 12:43Speaker 6: And now you have the whole panoply of advisors to
- 12:46Speaker 6: him kind of bending over backwards to make it seem
- 12:48Speaker 6: like a real live issue, even when we know that
- 12:50Speaker 6: it would be incredibly difficult, if not impossible for this
- 12:52Speaker 6: administration to put forward.
- 12:55Speaker 12: Yeah, David, I think what's the most curious thing about
- 12:57Speaker 12: this is, as you point out, it's the number one
- 13:00Speaker 12: policy item that Donald Trump put on the table for
- 13:05Speaker 12: here's what I'm going to do for you in the future.
- 13:07Speaker 12: Except not one single other speaker, a hundred other speakers
- 13:12Speaker 12: did not mention it a bit. And so you would
- 13:16Speaker 12: think you wouldn't want it echoed through the two days
- 13:19Speaker 12: of the convention. Let's lay out this great policy. We're
- 13:21Speaker 12: going to have this massive stimulus go into the country,
- 13:25Speaker 12: $ 1. 3 trillion worth of funds to the American people. And
- 13:30Speaker 12: nobody mentioned it. Now, 48 hours after the idea surfaced,
- 13:34Speaker 12: you've got cabinet members kind of, you know, circling the
- 13:36Speaker 12: wagons trying to figure out, okay, how are we going
- 13:38Speaker 12: to pay for this?
- 13:39Speaker 10: And what are we going to do? I would say
- 13:41Speaker 10: the one.
- 13:41Speaker 12: Thing that I would worry about if I were inside
- 13:45Speaker 12: the political tent of the White House right now is,
- 13:48Speaker 12: are we losing our credibility with voters? Because it's one
- 13:52Speaker 12: thing to throw all these ideas out. It's one thing
- 13:54Speaker 12: to demagogue. And that has a lot of value sometimes
- 13:58Speaker 12: in the political equation. But if you do too much
- 14:01Speaker 12: of it, you lose the credibility you have with voters,
- 14:04Speaker 12: and then nothing you say they'll listen to. And that is,
- 14:09Speaker 12: I think, very close to being one of the net
- 14:11Speaker 12: effects of this convention is a credibility loss.
- 14:15Speaker 9: Ginny, do you think Democrats are capitalizing on that enough?
- 14:19Speaker 9: I mean, it strikes me that the only real counter-programming
- 14:21Speaker 9: they had to this Republican midterm Trumpapalooza convention, whatever it was, was,
- 14:26Speaker 9: you know, they did have former President Obama meeting in
- 14:29Speaker 9: New York with the Speaker of the House. But is
- 14:32Speaker 9: that enough? We only have a few seconds here.
- 14:33Speaker 6: Presumptive Speaker of the House, I suppose, if Democrats win.
- 14:36Speaker 1: Excuse me for that. Hakeem Jeffries. Apologies. Thank you, David.
- 14:39Speaker 4: It's OK, Christina. We like it. You know, I don't
- 14:44Speaker 4: think they should be counterprogrammed to tell you the truth.
- 14:46Speaker 4: I keep saying the more eyeballs on Donald Trump, that's
- 14:49Speaker 4: one thing Democrats and Donald Trump agree with. The more
- 14:52Speaker 4: Donald Trump you have, the more this is a referendum
- 14:54Speaker 4: on Donald Trump and the more you're going to get
- 14:57Speaker 4: very angry Democrats and some independents and moderates. to go
- 15:00Speaker 4: out and vote Democratic. So they were very, very happy
- 15:03Speaker 4: with this. In fact, I think, Christina, they'd like another
- 15:07Speaker 4: midterm convention. Now, I don't think you guys would, but
- 15:09Speaker 4: they'd like another one because they think this has gone
- 15:12Speaker 4: awry for the Republicans. They feel the president is desperate
- 15:16Speaker 4: to get out the vote when he's got to offer $ 5, 000.
- 15:19Speaker 4: And even Laura Ingraham is saying on Fox, you've got
- 15:22Speaker 4: the money. Why don't you give it now? Why wait
- 15:24Speaker 4: till after the election? the midterm because it's a quid
- 15:27Speaker 4: pro quo. He wants to deny that now, but of course,
- 15:30Speaker 4: that's what it is. So Democrats are very happy about
- 15:33Speaker 4: this turn of events, I should say.
- 15:35Speaker 6: Ginny, great to speak with you as always. Ginny Shienzaino,
- 15:37Speaker 6: the Harvard Kennedy School Bloomberg Politics contributor. Rick Davis joining
- 15:40Speaker 6: us as well, partner at Stonecourt Capital, Bloomberg Politics contributor
- 15:43Speaker 6: as well. We're going to speak to one of Ginny's
- 15:45Speaker 6: colleagues here in a little while, Nick Burns, the former
- 15:46Speaker 6: ambassador to NATO, former ambassador to Beijing, going to join
- 15:49Speaker 6: us here with his memories of what happened on 9-11
- 15:51Speaker 6: 25 years ago today.
- 15:54Speaker 7: Stay with us on Balance of Power. We'll have much
- 15:57Speaker 7: more coming up after this.
- 16:01Speaker 5: You're listening to the Bloomberg Balance of Power podcast. Catch
- 16:05Speaker 5: us live weekdays at noon and 5 p.m. Eastern on
- 16:08Speaker 5: Apple CarPlay and Android Auto with the Bloomberg Business app.
- 16:11Speaker 5: You can also listen live on Amazon Alexa from our
- 16:14Speaker 5: flagship New York station. Just say, Alexa, play Bloomberg 1130.
- 16:21Speaker 1: Welcome back to Balance of Power.
- 16:22Speaker 9: It's Christina Ruffini and David Gurra in for Joe Matthew
- 16:25Speaker 9: and Kaylee Lyons.
- 16:25Speaker 1: Of course, today.
- 16:27Speaker 9: It is 25 years since the attacks of September 11th.
- 16:30Speaker 9: We're watching live pictures of the memorial in Lower Manhattan
- 16:34Speaker 9: as we listened the last couple hours to those many,
- 16:37Speaker 9: many names read by family members at the memorials here.
- 16:41Speaker 9: We're also expecting a ceremony in Shanksville, Pennsylvania for Flight 93.
- 16:45Speaker 9: And we have heard the president speak at the Pentagon today.
- 16:48Speaker 9: earlier today. Although Joe is not with us today, he's
- 16:51Speaker 9: with us in spirit. And we do want to play
- 16:53Speaker 9: some sound from an interview he did with the U.S.
- 16:56Speaker 9: Commerce Secretary Howard Lutnick on what the U.S. is like
- 17:00Speaker 9: with the security situation, how America's safety has changed in
- 17:03Speaker 9: the 25 years since those attacks.
- 17:04Speaker 1: Take a listen.
- 17:05Speaker 10: America is by far safer now. We think about things.
- 17:08Speaker 10: We study things.
- 17:10Speaker 13: You know, being a part of the government, you know,
- 17:13Speaker 13: with a very high security clearance, I get to read
- 17:16Speaker 13: all the time. And our adversaries wish us ill. Make
- 17:20Speaker 13: no mistake about it, they wish us ill. But we
- 17:22Speaker 13: are smart, we are thoughtful, and we are capable. And
- 17:25Speaker 13: what actually hurts me the most is when I see
- 17:28Speaker 13: people running for office in America who hate America. you know,
- 17:33Speaker 13: like say something like America deserved it. I mean, how
- 17:37Speaker 13: horrible to suggest that my brother and all my friends
- 17:41Speaker 13: who were living the American dream and just came to
- 17:43Speaker 13: work that day, for someone to say that we, the
- 17:47Speaker 13: great America living the American dream, deserve anything. We deserve happiness.
- 17:52Speaker 13: prosperity and the pursuit of the American dream. That's who
- 17:56Speaker 13: we are. That's who we've always been. And people who
- 18:00Speaker 13: are jealous of us don't deserve airtime. And I wish
- 18:03Speaker 13: they didn't get it.
- 18:03Speaker 3: Well, what would be your message to young people who
- 18:05Speaker 3: were not alive then? This is something that they've read about,
- 18:08Speaker 3: that they've heard about. And there's some very troubling conversations
- 18:12Speaker 3: that we hear in high schools and on college campuses
- 18:16Speaker 3: about this. What do you tell people who were not
- 18:19Speaker 3: alive on 9-11, who do not realize that What a
- 18:22Speaker 3: big deal that was for the history of this country.
- 18:25Speaker 13: The American dream lives inside of each of us. It's
- 18:30Speaker 13: part of our DNA and our heritage.
- 18:32Speaker 10: It's who we are and who we become.
- 18:35Speaker 13: And the rest of the world just does not have
- 18:38Speaker 13: that entrepreneurship, the energy, the vision that I can be
- 18:42Speaker 13: born and I could.
- 18:43Speaker 10: Be the president of the United States of America. Anybody can.
- 18:46Speaker 10: And they are.
- 18:47Speaker 13: And so what I would say to them is, You
- 18:50Speaker 13: have inside of you the American dream. And if other
- 18:53Speaker 13: people are jealous and other people are nasty and other
- 18:56Speaker 13: people hate you and jihadists want to kill you, the
- 18:59Speaker 13: fact is the beauty of America is the American dream.
- 19:04Speaker 13: And you should always protect it, defend it, and love
- 19:08Speaker 13: it because it's inside of each of us and it
- 19:11Speaker 13: makes us what we are, which is great and special.
- 19:15Speaker 6: The Commerce Secretary Howard Luttner, they're in conversation with our
- 19:18Speaker 6: colleague Joe Matthew at the University of North Carolina a
- 19:21Speaker 6: few days ago, talking about the legacy of 9-11. Of course,
- 19:24Speaker 6: he suffered so much personal tragedy in those attacks, including
- 19:27Speaker 6: losing his brother, as he alluded to in those comments
- 19:29Speaker 6: just a few moments ago. I want to bring in
- 19:32Speaker 6: now Brigadier General Leland Blanchard II. He's the Interim Commanding
- 19:35Speaker 6: General of the District of Columbia National Guard, joining us now.
- 19:38Speaker 6: Great to have you with us. And you heard the
- 19:39Speaker 6: Commerce Secretary there say unequivocally, the U.S. is safer now
- 19:42Speaker 6: than it was before. And I wanted to put that
- 19:44Speaker 6: same question to you. If I'm not mistaken, you were
- 19:47Speaker 6: an officer in Fort Benning, Georgia, on the day of
- 19:49Speaker 6: those attacks, and it certainly shaped your life significantly after
- 19:53Speaker 6: those attacks took place.
- 19:54Speaker 10: Do you agree?
- 19:55Speaker 6: Are we safer now than we were on September the 11th?
- 19:59Speaker 11: Well, I think we are certainly safer, but I also
- 20:01Speaker 11: acknowledge that the threat continues to evolve. It's always something
- 20:06Speaker 11: that we got to continue to work to stay ahead of.
- 20:09Speaker 11: And so I agree, we are definitely safer. I think
- 20:11Speaker 11: we're certainly more aware of the dangers out there in
- 20:15Speaker 11: the world, but it is something that we've got to
- 20:17Speaker 11: continually fight and address and stay ahead of.
- 20:21Speaker 9: I do want to ask you, given your background and
- 20:22Speaker 9: your current mission, one of the things that we really
- 20:25Speaker 9: saw after 9-11 was the militarization of police departments. And
- 20:29Speaker 9: not just in big cities like D.C., New York, Atlanta, but,
- 20:31Speaker 9: you know, smaller cities, smaller towns getting armored vehicles, getting
- 20:36Speaker 9: prepared for potential terrorism attacks. And that kind of became
- 20:39Speaker 9: a self-fulfilling thing where you had these police departments looking
- 20:43Speaker 9: more and more like militaries.
- 20:45Speaker 1: Has there been a pullback of that? Do you think
- 20:47Speaker 1: some of that went too far?
- 20:48Speaker 9: And do these police departments always know or have the
- 20:51Speaker 9: best ability to utilize some of this equipment? Or is
- 20:54Speaker 9: there a point where they should turn to the National Guard,
- 20:56Speaker 9: turn to the military instead?
- 20:59Speaker 11: Well, I think it's going to be up to those
- 21:01Speaker 11: individual departments, right? I mean, it varies so much. And
- 21:05Speaker 11: it's the responsibility of those leaders to ensure that every
- 21:08Speaker 11: one of their officers is And I know they work
- 21:10Speaker 11: hard to make sure that they're current, that they have
- 21:12Speaker 11: the best equipment possible. It's their responsibility. And it's a
- 21:15Speaker 11: tremendous responsibility when you're the sheriff or the police chief
- 21:19Speaker 11: of a town or a city to ensure that everyone
- 21:22Speaker 11: is secure and safe. And I think as we continue
- 21:24Speaker 11: to move forward and acknowledge those challenges, again, the world
- 21:28Speaker 11: continues to change. the National Guard is always ready to participate,
- 21:33Speaker 11: to be a great partner. And where those efforts combine
- 21:37Speaker 11: and we're able to support and link up and work together,
- 21:40Speaker 11: I think there's great benefit for that. And again, I
- 21:43Speaker 11: love the collaboration that we see and any opportunity to
- 21:47Speaker 11: keep our communities safe and our citizens and visitors safe.
- 21:50Speaker 11: We're going to do that.
- 21:51Speaker 6: General, I know we want to talk about your current
- 21:53Speaker 6: mission here in just a moment, but let me ask
- 21:54Speaker 6: you before we get there, just about the way the
- 21:57Speaker 6: events of September the 11th changed cities, the configuration of cities.
- 22:01Speaker 6: And you're in Washington today. It looks radically different, I think.
- 22:04Speaker 6: You can navigate it differently than you did before September
- 22:07Speaker 6: the 11th. Could you meditate on that just a little
- 22:09Speaker 6: bit here, the way that we've kind of seen this
- 22:11Speaker 6: tradeoff between, yes, personal liberties, access to buildings, access to places,
- 22:16Speaker 6: and the need for there to be more heightened security
- 22:18Speaker 6: in cities around this country?
- 22:21Speaker 11: Yeah, so that's a, you know, it's interesting. And I
- 22:23Speaker 11: heard the secretary kind of address it. How do you
- 22:26Speaker 11: explain it to people who weren't maybe alive at that time?
- 22:29Speaker 11: And I think it's a balance, right? And so you
- 22:32Speaker 11: want to make sure that you have all of your
- 22:33Speaker 11: liberties that are guaranteed under the Constitution. You know, that's
- 22:37Speaker 11: what we in the military and I know law enforcement officers,
- 22:41Speaker 11: you raise your right hand and swear an allegiance to that.
- 22:43Speaker 11: You want to have that balance where you're able to
- 22:45Speaker 11: do that. But you also acknowledge that there's a threat
- 22:48Speaker 11: out there and it's our job collectively to get after that,
- 22:52Speaker 11: to ensure that that our children are able to start
- 22:55Speaker 11: a school year and finish the school year in a
- 22:58Speaker 11: safe environment. That is an ongoing challenge. And I think
- 23:01Speaker 11: it's as you look back over the last 25 years
- 23:04Speaker 11: and I know for me, as I reflect on how
- 23:08Speaker 11: how different the world has changed. that was such a
- 23:11Speaker 11: seminal event for me. It has changed and impacted everything
- 23:15Speaker 11: that I do the way I do it. But how
- 23:17Speaker 11: do you pass that along to future generations and let
- 23:20Speaker 11: them know what we've had to maybe give up a
- 23:25Speaker 11: little bit here and there to make sure that we
- 23:27Speaker 11: maintain that balance and that they don't forget what it
- 23:31Speaker 11: takes to secure those liberties?
- 23:33Speaker 9: General, I do want to ask you about your current mandate.
- 23:35Speaker 9: We just saw the order for the National Guard in D.C.
- 23:38Speaker 9: has been extended to January 2029. But look, I lived
- 23:41Speaker 9: in the city 17 years. I've been there for the good,
- 23:43Speaker 9: the bad, and the in-between. And when you look at
- 23:47Speaker 9: where we see the National Guardsmen the most, where we
- 23:51Speaker 9: come into contact with them the most, they're in the metro.
- 23:54Speaker 1: They're at the Georgetown Water Park.
- 23:55Speaker 9: They're at places the administration is likely to see you,
- 23:58Speaker 9: but they're not always in the places... where the city
- 24:01Speaker 9: says they need help. What exactly is your mission and
- 24:05Speaker 9: why do you need longer to accomplish it?
- 24:08Speaker 11: Well, I would tell you that we're everywhere. So if
- 24:10Speaker 11: you go to Ward 7, Ward 8, we're there. Whether
- 24:14Speaker 11: you're Columbia Heights or over in Anacostia, I encourage people
- 24:18Speaker 11: to get out and about in the city. Certainly we
- 24:21Speaker 11: are going to be where there are large crowds, but
- 24:23Speaker 11: mostly what we're doing is we're working in coordination at
- 24:27Speaker 11: the request of our MPD, our federal agency partners, So
- 24:31Speaker 11: that we can fill in where they need us. That's
- 24:35Speaker 11: our role is to provide support. A lot of capacity,
- 24:39Speaker 11: filling those gaps that they may have, particularly in large events.
- 24:42Speaker 1: So what are the rules of engagement?
- 24:44Speaker 9: If somebody grabs my shopping bag, are your guys allowed
- 24:48Speaker 9: to intervene?
- 24:48Speaker 1: Do they have body cameras? What are the rules on
- 24:51Speaker 1: using firearms?
- 24:53Speaker 3: So.
- 24:54Speaker 11: Words have meaning. So we don't operate under rules of engagement.
- 24:58Speaker 11: We operate under the rules for the use of force,
- 25:01Speaker 11: just like, you know, so has been provided to us
- 25:03Speaker 11: through the Department of Justice. again, in collaboration with the
- 25:06Speaker 11: law enforcement agencies. But absolutely. So our soldiers and airmen
- 25:10Speaker 11: out on the street are deputized as special deputy U.S. marshals.
- 25:14Speaker 11: They have the authority that is needed to operate. But again,
- 25:19Speaker 11: we're here to support local and federal law enforcement agencies.
- 25:22Speaker 11: But absolutely, if someone is committing a crime like that,
- 25:26Speaker 11: where someone is at risk, because it can quickly escalate
- 25:29Speaker 11: from stealing a bag to physically assaulting someone. So they
- 25:34Speaker 11: are going to place themselves in there, de-escalate that situation,
- 25:38Speaker 11: and again, work, call local law enforcement, get people moving.
- 25:42Speaker 11: But absolutely, they will intervene in that situation.
- 25:44Speaker 10: We've got about a minute left.
- 25:45Speaker 6: I asked you how the landscape has changed in a
- 25:47Speaker 6: lot of cities. I will say visiting D.C., the It
- 25:49Speaker 6: looks different to see National Guardsmen and women around D.C.
- 25:53Speaker 6: And I know a criticism is this is kind of
- 25:55Speaker 6: a kind of martial law almost. It's not what we're
- 25:57Speaker 6: used to seeing. How do you respond to that in
- 25:59Speaker 6: the minute we have left?
- 26:01Speaker 11: Yeah, I would just say go out and visit, talk
- 26:03Speaker 11: to the soldiers and airmen out on the streets. I
- 26:05Speaker 11: hear that occasionally, but I also get the hugs when
- 26:08Speaker 11: I'm out visiting. I try to visit every single day
- 26:10Speaker 11: with our soldiers and airmen out there. The comments that
- 26:13Speaker 11: I get, particularly in some of the neighborhoods where resources
- 26:17Speaker 11: haven't been readily available over the years, they're very welcoming.
- 26:22Speaker 11: I get a lot of hugs, a lot of comments. And,
- 26:25Speaker 11: you know, again, it represents a significant investment into the
- 26:28Speaker 11: security and safety of every neighborhood. And I think for
- 26:31Speaker 11: the most part, residents are happy with that. I understand
- 26:35Speaker 11: not everyone is going to be. But as we move forward,
- 26:39Speaker 11: I continue to just tell people, engage those airmen and
- 26:42Speaker 11: soldiers out there and ask them why they serve, why
- 26:44Speaker 11: they're here. You might be surprised how close they are
- 26:47Speaker 11: to your perspective.
- 26:49Speaker 3: All right.
- 26:49Speaker 9: Brigadier General Leland Blanchard II, he is the Interim Commanding
- 26:53Speaker 9: General of the District of Columbia National Guard.
- 26:55Speaker 1: Thank you so much for joining us today.
- 26:58Speaker 7: Stay with us on Balance of Power. We'll have much
- 27:00Speaker 7: more coming up after this.
- 27:05Speaker 5: You're listening to the Bloomberg Balance of Power podcast. Catch
- 27:09Speaker 5: us live weekdays at noon and 5 p.m. Eastern on
- 27:12Speaker 5: Apple CarPlay and Android Auto with the Bloomberg Business app.
- 27:15Speaker 5: Listen on demand wherever you get your podcasts or watch
- 27:19Speaker 5: us live on YouTube.
- 27:22Speaker 9: I am Christina Ruffini here with David Guray in for
- 27:24Speaker 9: Joe and Kaylee today on Balance of Power. And David,
- 27:27Speaker 9: we've been talking a lot about 9-11, what it did
- 27:29Speaker 9: to the country, what it did to the world, but
- 27:31Speaker 9: now we're going to focus a little bit on how
- 27:32Speaker 9: it altered geopolitics.
- 27:33Speaker 10: Yes.
- 27:34Speaker 6: Our next guest spent August 2001 packing up the ambassador's
- 27:37Speaker 6: apartment in Athens, getting ready for a move to Brussels.
- 27:40Speaker 6: Nick Burns moved there to be the U.S. ambassador to
- 27:43Speaker 6: NATO and got there 12 days, I believe, before the
- 27:46Speaker 6: events of September the 11th. He is now Professor of
- 27:48Speaker 6: the Practice of Diplomacy at the Harvard Kennedy School and
- 27:50Speaker 6: joins us now. Ambassador Burns, great to have you with
- 27:52Speaker 6: us once again. And I wonder if you could take
- 27:54Speaker 6: us back to that day. We've been reminiscing over the
- 27:56Speaker 6: course of these last two hours about the events of
- 27:59Speaker 6: a quarter century ago. How did you see what was
- 28:02Speaker 6: unfolding and indeed what happened in the hours that followed?
- 28:05Speaker 14: David, it was obviously a catastrophic day for our country
- 28:08Speaker 14: and for people around the world. And at NATO headquarters,
- 28:12Speaker 14: we couldn't reach Washington for several hours because the White
- 28:16Speaker 14: House had been evacuated The State Department and Pentagon evacuated.
- 28:20Speaker 10: The Pentagon attacked.
- 28:21Speaker 14: And so my combined military and diplomatic staff was trying
- 28:25Speaker 14: to figure out what can we do to help the
- 28:26Speaker 14: home front. And my phone rang. And it was David Wright,
- 28:30Speaker 14: the Canadian ambassador. And he was the senior ambassador at NATO,
- 28:34Speaker 14: the longest serving. And he said, Nick, I think we
- 28:36Speaker 14: can invoke Article 5 of the NATO treaty. An attack
- 28:39Speaker 14: on one shall be considered an attack on all. It
- 28:42Speaker 14: had never been invoked in NATO history. We hadn't had
- 28:44Speaker 14: a war in Europe since the Second World War. And boy,
- 28:48Speaker 14: was that a shot in the arm. And within hours,
- 28:51Speaker 14: I received calls from the Danish ambassador, the German, Italian,
- 28:54Speaker 14: Spanish ambassadors, the British ambassador. They were all with us.
- 28:59Speaker 14: And by the next morning, we were ready to invoke
- 29:01Speaker 14: Article 5. It's a unanimous vote of NATO. If one
- 29:04Speaker 14: country had dissented, it wouldn't have occurred. And I called
- 29:08Speaker 14: back to Condoleezza Rice, who was a close friend. She
- 29:10Speaker 14: was the national security advisor. And she gave me the
- 29:13Speaker 14: president's personal authority at four in the morning in Washington
- 29:16Speaker 14: to vote for this And I'll never forget what she said.
- 29:20Speaker 14: She said, look, before you vote one more thing.
- 29:22Speaker 10: I said, what's that?
- 29:24Speaker 14: And she said, it's good to have friends in the world.
- 29:27Speaker 14: And I think we all felt that when the American
- 29:30Speaker 14: people woke up on the 12th of September. We had NATO, Canada,
- 29:35Speaker 14: all the Europeans ready to go into battle with us.
- 29:37Speaker 14: They all did go into battle together. in Afghanistan and
- 29:41Speaker 14: most of them into Iraq subsequently. So, you know, I've
- 29:44Speaker 14: reflected on this a long time. David and Christine, I
- 29:47Speaker 14: was ambassador in China. The Chinese don't have any allies
- 29:50Speaker 14: who will go to bat for them. The Russians don't,
- 29:52Speaker 14: but we do. And so I think we should deeply value,
- 29:56Speaker 14: respect China.
- 29:57Speaker 10: Our allies. That's the lesson I learned on 9-11.
- 29:59Speaker 9: Ambassador, that's so interesting to me. I actually didn't know.
- 30:02Speaker 9: I had assumed the U.S. had asked to invoke Article 5.
- 30:05Speaker 9: I didn't realize the idea had come from other allies themselves.
- 30:09Speaker 1: To trigger that clause.
- 30:10Speaker 9: I did want to ask you, as we were talking
- 30:12Speaker 9: about having you on and all the different things we
- 30:14Speaker 9: wanted to speak about, when it comes to Article 5,
- 30:16Speaker 9: you talk so much about how important.
- 30:18Speaker 1: It was for the U.S. to have allies in The U.S.
- 30:21Speaker 9: Has strained a lot of those relationships, especially with Europe,
- 30:24Speaker 9: right now with Canada. If the same circumstances were to
- 30:27Speaker 9: present themselves again, we talk so often about whether the U.S.
- 30:31Speaker 9: would hold up its end of Article 5. Do you
- 30:34Speaker 9: think the Europeans, the Canadians, the other NATO members would
- 30:36Speaker 9: be so ready to trigger that mutual defense treaty again,
- 30:40Speaker 9: given where those relationships.
- 30:42Speaker 1: Are right now?
- 30:43Speaker 14: Well, that's a very good question. I would hope that,
- 30:48Speaker 14: God forbid, we ever had another episode and attack on
- 30:51Speaker 14: the United States like 9-11, and I hope we never,
- 30:53Speaker 14: ever do, I would hope the allies, of course, would
- 30:56Speaker 14: defend us.
- 30:57Speaker 10: I'm an American. I would want our country to be defended. But,
- 31:00Speaker 10: you know, it goes both ways.
- 31:02Speaker 14: And the way NATO works, it works on trust.
- 31:04Speaker 10: It works on mutual commitment.
- 31:06Speaker 14: So if we as Americans want to be able to
- 31:09Speaker 14: call on our allies on a day like that, then
- 31:12Speaker 14: we need to be good to them and respect them
- 31:15Speaker 14: and show that respect and respect. build up NATO. And
- 31:19Speaker 14: I do think President Trump has not done that. And
- 31:23Speaker 14: I wish, I hope he'll change course. I hope he'll
- 31:25Speaker 14: show greater respect for Canada. What a great neighbor Canada
- 31:29Speaker 14: is for all of us. And it's painful to see
- 31:32Speaker 14: this talk of a 51st state. It's painful to see
- 31:35Speaker 14: the talk that we should annex Greenland and now Iceland.
- 31:40Speaker 14: It doesn't make sense for us. And boy, I in
- 31:45Speaker 14: my diplomatic career, you know, you need strength, you need leverage.
- 31:48Speaker 14: We're so much stronger with our allies. So I do
- 31:51Speaker 14: think it works both ways. If we show faith in them,
- 31:54Speaker 14: trust in them, they'll show faith in us.
- 31:57Speaker 6: The Prime Minister of Canada, Mark Carney, getting ready to
- 32:00Speaker 6: make a trip to Strasbourg, he's going to deliver a
- 32:01Speaker 6: speech to the European Parliament ahead of Ursula von der
- 32:04Speaker 6: Leyen's speech the following day for State of the EU speech.
- 32:09Speaker 6: And I was struck by something he said in advance
- 32:10Speaker 6: of that, Ambassador Burns. He said, It's my strong personal
- 32:13Speaker 6: view that the international order will be rebuilt, but it
- 32:16Speaker 6: will be rebuilt out of Europe. And I'm curious how
- 32:19Speaker 6: you kind of look at these three poles, the U.S.,
- 32:21Speaker 6: Europe and Canada right now, and the way that that configuration,
- 32:24Speaker 6: that balance has shifted here in recent months.
- 32:28Speaker 14: You know, I think the more another way to think
- 32:32Speaker 14: about it, and I think Prime Minister Carney is a
- 32:33Speaker 14: very smart guy and his speech was thought provoking. The
- 32:37Speaker 14: real threat to the democratic countries of the world is
- 32:39Speaker 14: from Vladimir Putin trying to divide Europe again, an authoritarian east,
- 32:43Speaker 14: a democratic west. The other big threat is China. And
- 32:48Speaker 14: I think it's incumbent on Canada and the European countries, Japan,
- 32:52Speaker 14: South Korea and the United States to be working together.
- 32:56Speaker 14: We want to live in peace with those two big countries,
- 32:59Speaker 14: but we don't want to be run over by them.
- 33:01Speaker 14: We have to defend our values. And so I think
- 33:04Speaker 14: it would be a mistake, frankly. for us, for the
- 33:07Speaker 14: democratic world to divide. Now, I certainly understand the frustrations
- 33:12Speaker 14: of Canada and of the Canadian prime minister, but I
- 33:15Speaker 14: do hope that the United States will shift course and
- 33:18Speaker 14: show allegiance to them because the threat from China long-term,
- 33:21Speaker 14: the threat from Putin short-term is pretty profound.
- 33:25Speaker 9: But given those rifts between America and many of its allies,
- 33:29Speaker 9: when you're going into a meeting like a meeting with
- 33:32Speaker 9: the Chinese or a meeting with the Russians, countries with
- 33:36Speaker 9: a continuous leadership, with long memories, and with long strategy
- 33:39Speaker 9: for military and diplomatic plans, does that hurt the U.S.
- 33:43Speaker 9: even in the best negotiating stance? Does China, does Russia
- 33:47Speaker 9: know that? Will they capitalize on that in those meetings?
- 33:51Speaker 14: Well, Christina, you're right in one sense. You know, if
- 33:53Speaker 14: you're Xi Jinping, you've been in power since 2012, or
- 33:56Speaker 14: Putin has been in power since 1999. there is one advantage.
- 34:01Speaker 14: They control everything. They have ultimate power. They can think strategically.
- 34:05Speaker 14: They can think several decades out. Democracies find it hard
- 34:09Speaker 14: to do that because we alternate power. We have elections.
- 34:12Speaker 14: But then again, we wouldn't have it any other way.
- 34:15Speaker 14: We happen to have friends and allies like on 9-11
- 34:19Speaker 14: who will go to bat for us. That leverage that
- 34:21Speaker 14: comes with allied powers is far greater than anything the Soviet,
- 34:25Speaker 14: the Russians, excuse me, or the Chinese can muster. So
- 34:28Speaker 14: I recognize their tactical strength. But I think strategically, we
- 34:32Speaker 14: in the democratic world have greater strength.
- 34:35Speaker 6: We're looking ahead to this visit by the Chinese president
- 34:38Speaker 6: to Washington, D.C., and you and I have talked in
- 34:39Speaker 6: the past about the three potential meetings these two leaders
- 34:42Speaker 6: could have here in the months to come. Curious how
- 34:45Speaker 6: you're thinking about that meeting, what you think the administration's
- 34:49Speaker 6: objectives should be here, and what would constitute a successful
- 34:52Speaker 6: summit between these two leaders in Washington?
- 34:55Speaker 14: I think President Trump and Secretary Besant are right to
- 34:58Speaker 14: put economics first on the agenda. We need a supply
- 35:01Speaker 14: chain truce and we need a tariff truce with China.
- 35:04Speaker 14: It's been elusive. David, you and I have talked about
- 35:07Speaker 14: this before. They thought they would get it at the
- 35:10Speaker 14: President's May trip to Beijing.
- 35:12Speaker 10: They didn't.
- 35:12Speaker 14: I hope they get it in Washington on September 24, 25.
- 35:16Speaker 14: That would really buoy the American economy, investors to know
- 35:21Speaker 14: that neither side's going to change the tariff schedule, and
- 35:26Speaker 14: neither side's going to withhold rare earths and other critical
- 35:29Speaker 14: minerals and supplies.
- 35:30Speaker 10: From the global market. That's first.
- 35:33Speaker 14: Second, I hope, and President Trump's talked about this, they're
- 35:36Speaker 14: going to talk about AI. From a national securities perspective,
- 35:39Speaker 14: China and the US, Japan, the NATO countries need to
- 35:43Speaker 14: be together in limiting the influence of AI when it
- 35:47Speaker 14: comes to weapons of mass destruction. I think you know
- 35:50Speaker 14: that When President Biden had his last meeting with Xi Jinping,
- 35:53Speaker 14: November 2024, they agreed human beings should remain in control
- 35:57Speaker 14: of nuclear weapons, not AI systems. So there has to
- 36:00Speaker 14: be regulation in that respect. And then finally, I think
- 36:04Speaker 14: Taiwan's a major issue. I believe it's a mistake for
- 36:08Speaker 14: President Trump not to go forward with this major multibillion
- 36:12Speaker 14: dollar arms sale for Taiwan. I think it shows weakness
- 36:15Speaker 14: to the Chinese leadership. It hurts Taiwan. It's in the
- 36:18Speaker 14: American national interest to continue that. Those, I think, at
- 36:21Speaker 14: least for me, would be the three big issues for
- 36:25Speaker 14: this meeting two weeks hence.
- 36:27Speaker 9: What do you make of some of these reports that
- 36:29Speaker 9: officials inside the Taiwanese government or inside their leadership apparatus
- 36:35Speaker 9: are so concerned about whether or not America would have
- 36:38Speaker 9: its back or this conflict to erupt that they are
- 36:40Speaker 9: considering capitulation to China at this point?
- 36:44Speaker 14: I don't give much credence to that. It's a democracy
- 36:48Speaker 14: in Taiwan, much like ours. So there's a lot of noise,
- 36:50Speaker 14: a lot of conversation, which is appropriate. But the government,
- 36:54Speaker 14: the president and the cabinet, I think they're all in
- 36:58Speaker 14: on learning from what Ukraine has done well to hold
- 37:00Speaker 14: off the Russians, learning about anti-ship weaponry, drone offensive and
- 37:06Speaker 14: defensive technology, acquiring that, which is the purpose of these
- 37:09Speaker 14: arms sales by the United States. What you're hearing is
- 37:13Speaker 14: from some of the opposition parties, and one of them
- 37:16Speaker 14: in particular, the KMT, which I think is more interested
- 37:19Speaker 14: in getting along with Beijing than resisting a threat of
- 37:24Speaker 14: force from Beijing. I don't doubt, though, that the government
- 37:27Speaker 14: of Taiwan wants to defend this. You know, it's 23
- 37:30Speaker 14: million people living in a very strong democracy. Americans should
- 37:34Speaker 14: want to support that type of place.
- 37:38Speaker 6: Could we close by talking about Iran? The last time
- 37:40Speaker 6: you and I spoke, that memo of understanding was all
- 37:43Speaker 6: but dead. I think it was ripped up in the
- 37:44Speaker 6: days that followed. But we've looked at a stalemate since then.
- 37:48Speaker 6: And now you see the rhetoric from the Iranian side,
- 37:51Speaker 6: the U.S.
- 37:51Speaker 10: Side.
- 37:52Speaker 6: We've seen the Houthis get involved in this conflict as
- 37:55Speaker 6: they hadn't at the beginning. And I'm curious sort of
- 37:57Speaker 6: how you see the state of play. And indeed, if
- 38:00Speaker 6: you see any kind of resolution here in the near
- 38:02Speaker 6: term horizon.
- 38:03Speaker 14: David, I'm sorry to say I don't see a resolution
- 38:05Speaker 14: anytime soon. I think this is a stalemate. I think
- 38:10Speaker 14: the Iranians believe that they are stronger will than we are.
- 38:14Speaker 14: We should disappoint them in that. They believe that we're
- 38:17Speaker 14: going to give in first because of the midterm elections.
- 38:21Speaker 14: And I think at all costs, the Trump administration is
- 38:26Speaker 14: correct in saying we cannot allow Iran to be a
- 38:30Speaker 14: toll keeper in the Strait of Hormuz. Think of the
- 38:33Speaker 14: disadvantages for the global economy and shipment of oil and
- 38:37Speaker 14: other commodities. That, I think, is a goal, preventing Iran
- 38:42Speaker 14: from having that capacity that almost every country in the
- 38:45Speaker 14: world can agree with. On the other hand, I think
- 38:48Speaker 14: the war was a mistake. We were wrong to go in,
- 38:51Speaker 14: but we are where we are. I hope the Trump
- 38:53Speaker 14: administration succeeds in convincing the Iranians to back down, but
- 38:57Speaker 14: I don't see that happening anytime soon. I would think
- 39:01Speaker 14: the Iranians would try to hold out Beyond our midterms,
- 39:04Speaker 14: President Trump has said he thinks they will. And so
- 39:07Speaker 14: this is going to be a very messy situation, a
- 39:10Speaker 14: diplomatic outcome in the short term.
- 39:12Speaker 10: I don't think it's in the cards, unfortunately.
- 39:15Speaker 1: Ambassador, I hate to give you only about a minute
- 39:17Speaker 1: to answer this, but I.
- 39:18Speaker 9: Do want to ask you, as we talk about soft
- 39:21Speaker 9: power negotiating prowess, is the State Department even functioning right
- 39:26Speaker 9: now to capacity? And would you advise a young person
- 39:28Speaker 9: to become a diplomat for America?
- 39:30Speaker 14: The State Department's in dire straits. We've had too many
- 39:34Speaker 14: of our senior officers fired by this administration, forced out, sidelined.
- 39:39Speaker 14: In the major negotiations, Christina, with Putin last week, there
- 39:44Speaker 14: was no foreign service officer in the room. On Iran,
- 39:47Speaker 14: no foreign service officers who know the Iranians well in
- 39:50Speaker 14: the room with Steve Witkoff and Jared Kushner. I think
- 39:52Speaker 14: it's really a shame that they're being sidelined. I do
- 39:56Speaker 14: teach students at Harvard, and I encourage them to go
- 39:59Speaker 14: into the State Department because a future president, Republican or Democrat,
- 40:03Speaker 14: is going to want to rebuild our diplomatic strength. And
- 40:06Speaker 14: I certainly want to encourage young Americans to keep the
- 40:09Speaker 14: faith that we need good, strong diplomats to help defend
- 40:12Speaker 14: the country.
- 40:13Speaker 6: After a long career in the diplomatic corps, he's now
- 40:15Speaker 6: the Roy and Barbara Goodman Family Professor of the Practice
- 40:17Speaker 6: of Diplomacy and International Relations at the Harvard Kennedy School.
- 40:19Speaker 6: Nick Burns, always great to speak to you. Thank you
- 40:21Speaker 6: very much for engaging with us on a range of
- 40:24Speaker 6: issues here as we look ahead again to that summit
- 40:25Speaker 6: between President Trump and President Xi taking place in Washington
- 40:28Speaker 6: in a couple weeks' time. And, Christina, it's safe to
- 40:30Speaker 6: say there's a lot on that agenda. We'll see sort
- 40:32Speaker 6: of what floats to the top as it unfolds.
- 40:34Speaker 1: I mean, it's really going to be interesting.
- 40:35Speaker 9: AI, Iran will come up, oil prices, energy, all of
- 40:38Speaker 9: the above, and we'll see if Taiwan comes up or not.
- 40:41Speaker 9: It's something that critics have said has not been voiced
- 40:43Speaker 9: as strongly as it should be in some of these
- 40:45Speaker 9: rooms in previous meetings by this administration.
- 40:47Speaker 6: Our thanks to you for joining us here on Balance
- 40:48Speaker 6: of Power on Bloomberg Television and Bloomberg Radio. David Gurra,
- 40:50Speaker 6: Christina Ruffini, and for Joe Matthew and Kayleigh Lyons on
- 40:53Speaker 6: this Friday afternoon. Coverage continues here across our many platforms,
- 40:56Speaker 6: Bloomberg TV, Bloomberg Radio, Bloomberg.com, and the Bloomberg Business App.
- 41:00Speaker 10: Stay with us.
- 41:00Speaker 11: And this weekend.
- 41:05Speaker 7: Thanks for listening to the Balance of Power podcast. Make
- 41:08Speaker 7: sure to subscribe if you haven't already at Apple, Spotify,
- 41:11Speaker 7: or wherever you get your podcasts. And you can find
- 41:14Speaker 7: us live every weekday from Washington, D.C. at noontime Eastern
- 41:18Speaker 7: at Bloomberg.com.