And, This is Rahm Emanuel on How Crony Capitalism And Trump’s Tariffs Will Kill The “American Dream”
Episode Stats
Length
1 hour and 22 minutes
Words per Minute
166.4049
Summary
In this episode, I sit down with Harvard President Rahm Emanuel Emanuel to discuss the state of the union, trade, and higher education. We talk about what it means to be a student at Harvard, why it's important to fight for higher education, and what the future holds for the Democratic Party.
Transcript
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Today, I initiated a lawsuit against the Trump administration on behalf of the people of the
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state of California, asserting that Trump does not have the unilateral authority to impose
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one of the largest tax increases in U.S. history. Impacts of these tariffs are disproportionately
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being felt here in California. The number one manufacturing state in America, a state that
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will be significantly impacted by this unilateral decision by the president of the United States.
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I'm looking forward to talking about that more with my next guest. We'll talk trade, we'll
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talk tariffs, we'll talk about what happened in the last election. Is this 2004 all over
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again? Are Democrats ready for a big comeback? And what does the future hold to my next guest?
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Is he running for president of the United States?
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And before we get started, there's so many issues that I want to get to in a relatively short period
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of time. We'll talk, obviously, about the state of the Democratic Party, the state of our union
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tariffs issues, obviously related to your service and time in Asia. But top of mind this week is
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so much of the attention on Harvard University and their pushback, which, you know, generated a lot
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of interest, including from your old boss, President Obama, who tweeted out a very positive statement on behalf of
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Harvard, asserting that it's time to assert universities to assert themselves more aggressively as it relates to what
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Trump's trying to do. I'm just curious what your thoughts were on Harvard and moreover what's happening with higher
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education in respect to the Trump administration.
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Well, I'm of a couple of minds on higher education. And one is, I mean, I don't think anybody's pointed this out, but, you know,
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Donald Trump started his kind of introduction into public life in one way or another with Roy Cohn, who is Joe
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McCarthy's right-hand man. And the attack on universities, infamous back in the McCarthy era, squashing both the role
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the universities played in our civil life and also academic freedom. And that's one element. The second element
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is, you know, having been in Japan, but I knew this without going to Japan, the American university system, I mean,
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California, you know, this firsthand, and its role that it plays from a research and development on
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cutting edge technologies, new entrepreneur, not only entrepreneurs, but new entrepreneurship, new ideas,
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new business models. I met somebody from Stanford the other day in the AI space, who's now got a company
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that's an example of what is so unique and people, Japan, Israel, I can give you all over the world and
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Europe, all admire what we have built year over year over year. And not only is the political
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freedom happening, but we're actually now killing the goose that laid the golden egg for America's
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economic competitiveness. And then third, if you think of the future on the international level,
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as a battle, not of a cold war in the sense of ideological Soviet Union versus the free world,
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but as a technological battle and competition between the United States and China,
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we are really unilaterally disarmed. And then fourth and finally, Governor, I take offense
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as an American and as a Jewish American, the idea that you're going to use anti-Semitism or what
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universities had as a culture, and I think there's a legitimate point to address that and reform that,
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but using anti-Semitism to literally destroy our academic institutions and universities and that's
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how they're getting the goods through customs, so quote unquote, dealing with anti-Semitism.
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And, you know, you and I are talking on Passover, the week of Passover, the idea that the Jewish
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community would find any comfort with one person's opinion as opposed to the rule of law.
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Well, I got 2,000 years of history that tells you that doesn't turn out well.
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So I can go at this like five different angles and I'm hoping Harvard and not just Harvard,
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but other universities, other law firms, other institutions, and I would say that to the Supreme
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Court. You're going to find out whether that black robe is a Halloween costume or you actually
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earned it and understand it because he's challenging you. There's nothing sacred.
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So everybody's going to have to decide, you know, and reach deep down. Harvard has. Other
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universities are going to have to do the same and decide that, you know what, there's something,
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a set of principles here that are more important than accommodation.
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And I appreciate the reference on the rule of law, particularly as it relates to the Supreme
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Court, but I'm just curious, I mean, it's interesting, you, sort of an origin story with
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Roy that I hadn't really considered. But what, I mean, is there something, I mean, you know, he talks
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often, Trump, doesn't he, about how highly educated people are. He's always impressed with people's
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looks. He's impressed with their education. Well, looks has nothing to do with how educated
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you are. No, no question about that. But what is, I mean, so it's an interesting thing to me,
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just as an observer, someone watches, obviously, Trump closely, this notion that higher education,
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some establishment plot. Is there some, is this a political agenda? Is this a 2025 agenda?
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They're getting their goods through customs here. Look, first of all, the whole idea of tenure
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for professors was built coming out of the McCarthy era. So you could not be prosecuted for your
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political views. That's the origin of it. That's where tenure as a concept is nurtured. If I'm reading
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And professors were given a ability to be protected professionally for, and not being
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prosecuted for any political expression or views. And now, were there things that universities
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got way off track on? A hundred percent. Were there reforms that were needed to be done?
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Yeah. And there's not a university president or a board member that wouldn't tell you that
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was true. Destroying the academic, not only freedom, but also the research elements and trying
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to coerce their behavior. Now we're going to the worst of McCarthyism. And I don't think it's a
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coincidence. I think it's actually correct. Donald Trump's mentor in public life is Roy Cohn,
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who was also Joe McCarthy's mentor and sidekick. And so we're living in a period of time. And I don't
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think, I don't think I'm being dramatic or hyperbolic, but that's the period of time
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these institutions, not just Ivy League, but public universities as well, have a history of them
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having stood up, having their voices heard and pushed back. And I know you want to stay in this
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area. And I just, so I just say this, I find it offensive that you're using quote unquote
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anti-Semitism that was perpetuated on the universities to really deal with your political
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agenda. So let me just say this, like the student at Columbia, the, I disagree with his views on Hamas.
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I disagree with his, what happened on, obviously what happened on October 7th. You want to deal
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with him in some way, have him force him to do community service as an intern at the Holocaust
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Museum for a year. Right. Now, all he was, he was expressing his views, which I find abhorrent,
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and I think the American people will see it. Killing 1200 citizens because they were Jewish
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is not acceptable. Cutting a fetus out of a woman is not only unacceptable, it's a crime.
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Okay. And you want to identify with that. We can handle that as a country without having to destroy
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either Columbia University, Harvard University, or a public university.
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You know, well said. And so, no, look, I, I appreciate that. Of course, I'm, you know,
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serving on the UC regions board as a Lieutenant governor and governor, no more precious system.
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From my perspective, in terms of conveyor belt for talent for this country and the research and
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development component of that, and you're extending beyond that. I mean, the NIH grants and all the
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other efforts to really wreck the systems. Put the research aside. Could you reform it? Yes.
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The universities were skimming some dollars. That's an easy way to reform, but don't throw out
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the goose that lays the golden egg. The second is, as it relates to academic, not academic freedoms,
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things that were done to Jewish students, Jewish culture, Jewish life on universities that would
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never be accepted to any other minority group. And that too had to be dealt with. And the universities
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being forthcoming about that would be helpful. But don't use an anti-Semitism or the attack on the
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Jewish community at a university to, as your way of getting your goods through customs, to actually
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fulfill a political agenda that was articulated in Project 2025, way beforehand.
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That's right. So let's, you know, and just sort of segue from Harvard. I mean, there are a number of
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Harvard graduates that happen to be members of the Supreme Court, and you referenced the court,
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and obviously another big story in the last few days has been referenced in the Oval Office visit
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with President Bukele of El Salvador and the conversation that was very publicly held in the Oval
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Office related to issues around the Supreme Court's 9-0 decision and the defiance, apparently the defiance of
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Pam Biondi, the attorney general, and obviously the president himself, including the president of El
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Salvador as it relates to that ruling. I mean, how concerned are you? People have talked about
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a constitutional crisis. They talk about red lines. They talk about the foundational principles of
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our founding fathers, three independent branches of government. When you defy or apparently defy a
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Supreme Court ruling, have we crossed that red line? Are we on the other side of this? Are we being
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hyperbolic? Well, I don't think you're being hyperbolic. Look, I think we're going to find out whether
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they're the black robes that the members of the court wear are a hollowing costume, or they represent
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the dignity of the court and its opinion as a co-equal branch of government. They were not ambiguous as
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related to the individual in that the United States acknowledged they wrongfully sent to the El Salvador
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prison. Now, the court is either going to show that the court's opinions are the final verdict and
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opinion now need to be executed by the executive branch. And if he defies them and they take no step
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in that, you know, there's a lot of ways to deal with, I mean, you know, individual citizens that are
00:14:00.760
held in contempt of the court. There's a lot of different ways to deal with this. And look,
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I go back to when Chief Justice Roberts was being confirmed by the Senate. He said that judges are
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like umpires. That was his words. They call balls and strikes. Well, you called this one. Now, either
00:14:21.280
you're going to allow your opinion as a umpire, which I happen to think is a horrible metaphor,
00:14:28.300
but you used it. And you're going to let your opinion hold the day. Or basically, it's a fungible
00:14:37.100
opinion. It doesn't matter what you say. Now, I'm not a lawyer. I don't know if you are a governor.
00:14:43.240
But I studied the Constitution. I always understood there were three branches, co-equal branches of
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government, not one above all others. We're going to find out something about the court,
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not just the president. Amen. The best of the Roman Republic, Greek democracy,
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independent co-equal branches of government, popular sovereignty, sort of fundamental principles
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we've been celebrating for 240 plus years. Look, we've also been sort of reflecting in the last
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few weeks, the years and years that Donald Trump himself and back to, I think, the origin story. And I
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think it's really interesting and insightful how you began the conversation as it relates to
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Roy Cohen and in the history of McCarthyism in relationship to this moment. And so much,
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I think, about Trump goes back to sort of indelible ideological perspectives that he's had for years
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and years and years. And I don't think we give enough credence to that, including on the issue that
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connects to you in a more modern term and your ambassadorial time in Japan. And that's the issue
00:15:47.240
of tariffs where Trump, I think in the 80s, put out a full page ad, if I recall, around how unfair
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trade policy was and how Japan at the time was cleaning our clock. And here we are, fast forward
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with all these tariff policies. So are you surprised that we're where we are? Obviously, you have strong
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opinions about the recklessness of it. But from an historic perspective, of that perspective, of that
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prism, does it surprise you what he's advancing?
00:16:13.880
So let's deal with a couple things that I think are all in there. One is, it doesn't surprise me
00:16:23.480
either. He said he was going to do the tariffs. What surprised me is the erraticness, because
00:16:28.300
it was the one constant thing he said in the campaign, one constant thing, as you said, in his
00:16:32.680
public life. And it's been the most erratic, not thought through most, I mean, as opposed to kind
00:16:39.420
of the project 2025 stuff that he didn't mention. That's been unbelievably like there was a strategy
00:16:45.420
book. Here is what he did mention. And it's just every day is a new day. Look, it's the largest tax
00:16:51.600
increase in American history. Full stop. Two, it's a corrupt system, because whoever goes to Mar-a-Lago
00:16:58.980
gets a cut, gets a cut, gets a cut, as you're seeing on cards.
00:17:02.400
If I could pause on that, I think that's the most underreported part of this. The regressive
00:17:08.020
tax side is one thing. What this means for crony capitalism is another.
00:17:12.260
This is the worst of, as I said, when he first got elected, but wasn't inaugurated here. He's
00:17:18.620
going to turn the Oval Office into eBay. And it's the highest bidder. And if it ain't nailed
00:17:23.220
down, he's going to sell it. And it's crony capitals. Here is my, another P, and it's affecting
00:17:29.200
the dollar. It's affecting your 401k. But here's the other piece. 20 years ago, China
00:17:35.180
was on the rise, and America was seen as stagnating decline.
00:17:40.180
Xi does a couple of things that is the worst economic damage any one person could do. And
00:17:46.000
he did it to China. He busts the housing bubble. He busts the municipal debt bubble. He cracks
00:17:52.340
down on the private sector. Foreign investment flees. Foreign entrepreneurs flee.
00:17:58.820
Entrepreneurs in China stop. And the economy goes into what people were referring to as
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a Japanese-style deflation. And youth unemployment shoots way up. The United States is on the rise.
00:18:12.800
Money is flowing in. Unemployment is down. Manufacturing is coming back.
00:18:20.800
And China's strategy in that scenario is we're going to export our problems through manufacturing
00:18:25.860
all across the globe. Chile loses its only steel plant. South Africa is about to lose their steel
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plant. Countries that align with China, Brazil, Mexico, file WTO cases against China. We're the
00:18:38.260
safe harbor. We're the adult that is the United States. What happens? We do these tariffs. They're
00:18:44.300
erratic. And then all of a sudden, China looks like a place of stability, and we look like the chaos
00:18:49.320
agent. Rather than China being isolated and the world aligning with the United States,
00:18:53.020
the United States gets isolated. And we have turned... We had China. And they knew it. They
00:18:59.620
said it. This doesn't require interpretation. China said, you're isolating us. We took advantage
00:19:06.080
of China's on goal. They did to themselves economically through their mercantilism what
00:19:11.820
their wolf warrior was on the diplomatic front. And we used it strategically better than we actually
00:19:18.120
assumed we could do. And we just committed the worst on goal. And snapping the... Literally ripping the
00:19:26.680
victory from the jaws of defeat. And now we're the isolated party. And what's worse, and let me say this
00:19:32.360
as a father with two children, uh, uh, one full time in the other, uh, reserve enlisted in the armed forces.
00:19:41.080
1979, governor, was the first time the United States deployed a sanction that was on Iran,
00:19:49.480
and used its economic power and the power of the dollar. So we didn't have to do something kinetic
00:19:56.280
militarily. We refined this and really become experts going through the war on terror.
00:20:02.600
And we had built up the capacity. One of the things that China and Russia hated was the United States
00:20:09.800
through the dollar could economically punish you in a way that it didn't have to require the
00:20:16.760
US military to do it, but we could use our economic power and our power of our dollar.
00:20:21.640
We have destroyed, destroyed, not inhibited. One of the most important tools we have developed over 50
00:20:31.000
years to punish an adversary without putting men and women in the United States uniform at risk.
00:20:37.640
This is, as my grandfather would say, a shanda. It's a crime committed against ourselves.
00:20:44.920
It is ridiculous. Now, most importantly, the American people, I give them a lot of credit.
00:20:51.240
It took them... They didn't go to Harvard. They didn't go to Columbia.
00:20:54.600
They didn't go to... They didn't even get a four-year degree, most of them.
00:20:57.880
They knew that a tariff was a tax on day one, and they knew they were going to get hosed.
00:21:03.400
Figured it out without it going to business school. We knew it up front. Rejected it.
00:21:08.440
And he is showing the political peril of his own position.
00:21:12.200
Yeah, we completely betrayed them, right? I mean, by definition, day one,
00:21:19.160
Look, we have our own problem as Democrats. We'll get to that in the rest of this podcast.
00:21:23.480
But the one thing you can say about Donald Trump, he'll betray you and stab you in the back.
00:21:27.640
And he's doing it all. And the American people are going to punish the Republicans for this.
00:21:32.760
I'm Israel Gutierrez, and I'm hosting a new podcast, Dub Dynasty. The story of how the
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The Golden State Warriors, once again, are NBA champions.
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Come revisit this magical Warriors ride. This is Dub Dynasty.
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That's the reason why they're banning books like yours, George.
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That's the reason why they're trying to stop the teaching of Black history or queer history,
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Listen to Math & Magic, Stories from the Frontiers of Marketing,
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My name is Brendan Patrick-Hughes, host of Divine Intervention.
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This is a story about radical nuns in combat boots and wild-haired priests
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trading blows with J. Edgar Hoover in a hell-bent effort to sabotage a war.
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Somebody violated the FBI, and he wanted to bring the Catholic left to its knees.
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The FBI went around to all their neighbors and said to them,
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It's got heists, tragedy, a trial of the century,
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and the goddamnedest love story you've ever heard.
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this is the most important phone call I'll ever make in my life.
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So let me, and I definitely look forward to talking about the political implications,
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I mean, because you've, I mean, you've experienced firsthand, up close,
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our efforts, particularly during the Biden administration.
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I really applaud those efforts, particularly with Japan and Korea,
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You were very vocal, very vocal, more than any ambassador,
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which took some courage, I thought, against China.
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You know, Trump's now saying we're respected around the world.
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What are they saying in the halls with our allies?
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Well, I would say to you, Governor, first of all,
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in 80 days, he's destroyed 80 years of credibility in the United States.
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You can look at the Indo-Pacific, you can look at the Middle East,
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you can look at Europe, you can look at Africa.
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is somehow restoring trust and credibility to the United States' work.
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I said, you know, just in word, but also in deed.
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between the president, the president of South Korea,
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We all three countries have a complicated history.
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We came together, saw the future as more important than the past,
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China brought together the foreign ministers of Korea and Japan with them.
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Korea, that was essential to the export controls
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Samsung, the shining corporate semiconductor company in Korea,
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They're looking out for their own self-interest.
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I mean, obviously there's a lot of talk now in South Korea
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You would understand it better than anyone in Japan even.
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I mean, do you think that's an outgrowth of this moment,
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You're about to get sticker shock on proliferation.
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I think Korea's going to look at the United States
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with North Korea's possession of nuclear capacity,
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I want to go double back on something I skipped,
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and I want to say something about the tariffs we had asked,