Sound On: Implications of Biden's Trip, Latest on CHIPS

Sloomberg Sound On with Joe Matthew on Bloomberg Radio. On the eve of his visit to Saudi Arabia, President Biden pledges to never allow Iran to get a nuclear weapon. Welcome to the fastest hour in politics, as we follow the President on the high wire act from Tel Aviv to Jetta with security, military alliances, and energy all on the line. Will be joined by Hillary Man Leverett, CEO of stratega consulting, former White House Middle East advisor for

both the Clinton and Bush administrations. There's a new effort in Washington to save the Chip Acts. Just as demand for chips begins to pull back. We'll have the latest in a conversation with Bloomberg's Eric Wasson. Will be with us from the Halls of Congress. Analysis today from our signature panel. Bloomberg Politics contributors Rick Davis and g. D.

Chanzano with us for the hour. President Biden takes aim at Iran at a news conference in Jerusalem today, saying that the US, as he put it, will not wait forever for Iran to agree to a new nuclear deal, adding this message as Israeli Prime Minister Lapide stood at his side, we mean what we say. They have an opportunity to accept disagreement has been laid down. If they don't, made it absolutely clear, we will not say it again. We will not allow Ran to acquire a nuclear weapon.

Some tough talk on the eve of President Biden's visits, as I mentioned to Saudi Arabia, the Prime Minister Lapide made clear that controlling Iran requires more than talk. Words will not stop them, Mr President, Diplomacy will not stop them. The only thing that will stop Iran is knowing that if they continue to develop their nuclear program, the free

world will use force. Some pretty interesting conversations happening on this trip that, of course many saw coming here with the headline on the terminal U S signals military backing to Israel with joint declaration the President committing to extending this agreement. It gives billions of dollars for the Israeli military. In the meeting today with Prime Minister Lapide a caretaker prime minister remembering that things were influxed their politically, which

makes this all the more fascinating. Hillary Man Leverett is with US, the CEO of Strategic Consulting and former White House Middle East Advisor for the Clinton and w. Bush Administration's author of the landmark text on US Iran relations go into Tehran, Why America must accept the Islamic Republic of Iran. What do you make of the messaging for starters here, Hillary, That that we're hearing with so much talk about Iran as the President straddles his trip between

Israel and Saudi Arabia, It's really fascinating. You know, Today is the seventh anniversary of the signing of the Iran Nuclear Deal, the famous Joint uh Joined joined UM the j c p o A with the Iran Nucular Deal seven years ago today. This was the signature achievement, signature foreign policy achievement of the Obama Biden administration. It was signed today, and that deal lifted sanctions on Iran, allowed Iranian oil to flow, all sorts of things that at

the time Vice President Biden was very happy with. But here we are seven seven years later and he is going to Israel and signing a basically an official declaration with the Israelis to use force against Iran for something thing that when he was vice president he was happy to use diplomacy for it. He spoke on television in Israel. I'm sure you saw this, that he would not rule out military action to prevent Iran from getting a nuclear weapon. Is he sounding more like Donald Trump or Barack Obama?

He's sounding more like Donald Trump. I mean, there's not much of a much difference between the policy at this point um that the Biden administration is pursuing. They I did not think that they want a war with Iran, as I don't think that that Trump and his maybe more more rational sounding moments didn't really want a war with Iran either. But both of them have this almost one could say, almost reckless disregard for that happening. And here too, the motivation for this trip to Israel and

Saudi Arabia was not originally Iran. Iran comes up really as the rationale to make this trip palatable. This was supposed to be a trip to Saudi arabi Be a couple of months ago. Right then we had, of course an important additive here we put the the initial days of the journey into Israel, despite the fact that they're

in the midst of solving their politics there. But I wonder if if you see this Hillary as a change in policy for this administration or Joe Biden trying to grease the skids on his way to Saudi Arabia to

say things that they want to hear. Well, it's probably a little bit of both, and it's really part of a bigger picture or at this point larger concerns that the administration has had to grapple with over the past few months, and that that really comes from Russia's invasion of Ukraine and it's almost out of control um competition between the United States, Russia, and China, which the Biden

administration just does not have a handle on. And why that's important to the Middle East is that from what I understand, folks within the Biden administration were shocked that when Russia invaded Ukraine and the United States wanted to impose sanctions or at least have rhetorical condom name of Russia. At the United Nations, our most are stalwart allies in the Middle East, Israel, Saudi Arabia, the U a E. All of them not only refused to join sanctions, but

they refused to even condemn Russia's action. And what that told folks in the Body administration was we are losing influence in the Middle East rapidly in an uncontrollable way, and that must be stepped well. This trip takes on new urgency against that backdrop. With with that framing that you just gave us here, Hilary, and people have been talking a lot about oil, This sounds like a lot more than oil. This sounds like preventing a power vacuum

for for for Russia, for China. But I also wonder, you know how much of this has to do with our military alliances and our military support for both Israel and Saudi Arabia. We're talking about billions of dollars in weapons that we're providing both nations, and we're going to

be providing a lot more. Part of what was agreed in um in Jerusalem today and what will be agreed over the next day or so in Saudi Arabia are from what I understand, will be even more weapons sales and the lifting of the the embargo essentially on some kind of offensive weapon. Is that the big news offensive weapons from the United States as opposed to, Hey, I've got three million barrels of oil in the back of

Air Force one. Yeah. I don't think that there's any real expectation that the Saudis are going to do anything so decisive on oil that's really going to help us, you know, s gasoline prices or the U s economy in the near future. And if that were really the priority of the Biding administration, they could go back into the Iran nuclear deal tomorrow and let a million barrows

of oil out of Iran tomorrow. So they really wanted more oil on the market, There's a much easier way to do that than to press the Saudis, who may not even have the capacity to do this. Has this been a failure in messaging by the White House, because I mean half of America thinks he's going on over

there to lower gas prices. It's a. It's a failure of messaging, and it really, I think in a deeper way, shows an incoherence in policy, incoherence and what the goals are um and an administration that's really struggling to catch up with with really important, almost seismic developments in geopolitics that either they didn't anticipate or just weren't prepared to deal with, including Russia's invasion of Ukraine, including China's continuing

competition with the United States, and these pro Americans forwards Saudi Arabia, the UAE, Israel basically turning their back on the United States and saying, you know, we're happy to be you know, uh somewhat allies with you, but we're not going to put all of our eggs in your bathness. Right, we're spending time with Hillary Man Leverett, CEO of Strtiga Consulting. You were in your time as a White House Middle East advisor, you were a director for Iran, Afghanistan and

Persian Gulf Affairs at the National Security Council. Hillary, at that time, what would you have thought as you projected and I know this was part of your job to project ten twenty years out here, we are in two. What did you think this region, this relationship between the

US and this region would look like. One of the things that I learned uh in the Bush administration, particular, right after nine eleven, some of our most important allies, all of a sudden had a big question mark over them, Saudi Arabia with fifteen and the nineteen hijackers and nine eleven being from Saudi Arabia. Pakistan, our longtime ally was

harboring m not only the Taliban, but Al Qayeda. At the time, there was this huge question mark all of a sudden, put over our long time allies, and a question mark put over some of our erstwhile enemies, like the Islamic Republic of Iran. After nine eleven, one of the most helpful countries to US was Iran, not Saudi Arabia, not Pakistan. And this doesn't mean that that Iran is

a good country, that the government is good. What it showed me and others, even within the Bush administration, was that Iran, in some ways, like China, even if you don't like their policies, they are critically important civilizational states. They're not going anywhere. So this has been a reversal from where you were to whom do you how do you peg the blame is that the outcome of the

Obama years the Trump years are both both. I mean, there's always What my book really was about going to Tehran is that there's an inevitability that the United States has to deal with Iran. Like with China. We're not there, we can't wish them away. There has to be diplomatic engagement with them. We have some common interests, we have some big differences, but there's always going to be engagement.

And so both the Obama administration and the Trump administration understood that, but they try to really get to get everything, to have their cake and eat it too. They were not willing to really look at what are others interests, what are Iran's interests, and how can we work together on common interests in a sense bracket where we have the President do the right thing this week saying that he would keep the Iranian Revolutionary Guards on the terror lists. Essentially, uh,

no matter what, even if it meant killing this deal. Again, this is another thing that makes no sense. The Revolutionary Guard are sanctioned fifty different ways in American law. If you take them off of one of the lists. It really makes no difference. It is a symbolic designation, but it just shows that the Biden administration is at this point willing to sacrifice a diplomatic a diplomatic deal with Iran that could bring more oil and gas onto the market.

They just don't want that headline. Yeah, they just don't want that. It's bad politics for them, especially in the lead up to No FA. Fascinating conversation. Hillary, I'm so glad you could join us. Hillary Man Leverett, CEO of Strategic Consulting and clearly spent some time in the White House the Clinton and w Bush administrations as the White House Middle East Advisor. Today, she's your advisor here on sound on the Fastest hour in Politics. Will assemble the

panel next. Rick Davis and Jennie Chanzana are up. This is Bloomberg. This is Bloomberg Sound on on Bloomberg Radio. Everyone thinks that President Biden is overseas just to get oil. Maybe he will get some oil. I'm sure he wants extra oil. But as you heard from our conversation with Hillary Man Leverett, there's so much more on the table here. So much of it has to do with not only security, in the region, but our stake in it, preventing the

power vacuum for Russia and China to move in. Here in a fascinating day for Joe Biden as he made his way through Israel, as we mentioned, not only warning on the nuclear deal with Iran, but actually making some news here and signing this defense cooperation agreement with the Israelis, including billions into enside for Israel. We assembled our panel. Now Genie Chantano and Rick Davis are with us Bloomberg Politics contributors. I want you both to hear what Senator

John Cornyn said today. This is basically proves the point that not not just half of America, probably more than that, think that Joe Biden is on a shopping trip to go to the oil store. Here's Senator Cornin of Texas. Rather than have domestic producers in places like Texas and elsewhere produced more oil and gas here in America, President Biden is doing really the unthinkable. He's going to talk to Mohammed Ben Solomon in Saudi Arabia. He is going

to talk to him. Rick Davis. Uh. It sounds to me though, like there's a lot more than oil to talk about. Oh, there is a lot more than oil to talk about. And you know, this is pretty late in the game in his administration to be making this trip. He's traveled extensively all over the world, and this is his first visit to um, the Middle East and the Kingdom, and so, uh, it's a long time in coming. And in in that period of time, there is a vacuum,

and we've seen it growing over time. Russian and Chinese are lobbying hard throughout the g c C to find friends and and extend their influence. I mean, remember it was only a few years ago we had to insist the U a E. Not allow China to build a strategic port in the region. I mean like this. You know, they were going to put a naval vessel in you know, not far from where we keep the fifth Fleet in Bahrain.

So these are important places to consider. The security that region is important, and our leadership is tantamount to keeping things from boiling over. And so this is an important trip. It started well in in Israel and we'll see how it finishes up on Friday in Saudi Arabia. The way that Rick just put that you need to keep things from boiling over, you actually can connect that to energy prices.

If there was a disruption, if there was let's say, a military incursion from either China or Russia, if the stakes changed, or even there was a whiff of that, the oil market would respond and things would likely be more expensive than they are now. How important is that part of this trip? That part of this trip is

very important. It's critically important for domestic politics. But I think what we saw on display today for the for the Biden administration was all the niceties between the Biden and administration and Israel in terms of their approach to Iran went by the wayside because they became very clear how different their approaches are. And you know, I thought it was very interesting what Hillary was talking about, you know,

us losing influence. Some people talked about it as us potentially if we don't get this deal on Iran, which it looks like we won't, subcontracting Middle Eastern security to Israel, and that is something Nixon did with the Shah of

Iran in the nineteen seventies. Is a very dangerous game for the United States to play for the very reasons Rick was just talking about, which is the the real power vacuum that you create over there not to mention these security the security threats, So that I think is a real challenge that the Biden administration is trying to grapple with, and they don't seem to have many answers. If not a nuclear agreement which is not going to

satisfy Israel, then what then? Why not in Iran deal? Here? Rick, if it does both put oil back on the market and prevent Iran from obtaining a nuclear weapon? Are we are we afraid to to upset Israel? And Nossaudis. I don't think it's a matter of upsetting Israel Nessaudis. Uh, they've been upset before with the original JP so Um. But Joe Biden wasn't the president then. I just I don't know how sensitive he's trying to be to these partners. He wasn't the president then. But but also what has

changed is the pernicious influence of Russian China in the region. Remember, Russian scientists are the ones who helped build the nuclear program in Iran, and and so you know they've been Russia has been supplying Iran with materials and equipment in order to facilitate you know, their nuclear program. So it's

not just Iran on its own doing this. Our enemies of our enemies are not our friends, and and and Russia and Iran have to be seen in a very similar picture now, and that changes a dynamic for for for the President Nited States, you know, while he's in Israel to sharpen his tongue a little bit on what he's prepared to accept out of Iran. But does that create a greater need for this deal, Rick, or does

it make it more toxic for the US? Well? I think I think you have to remember there's a counterparty, and Iran is the one who's not dealing in a in a realistic fashion with a with a deal here. Now. You could argue that that's because they were kicked out of the agreement by Donald Trump and things like that, but if they wanted an agreement, they'd be at the table today. He says he's not gonna wait forever, Joe Biden, Jeannie,

how long does that mean we have to figure this out? Well, you know, I'm not sure, and he didn't answer that question. And you know what it sounds like is again we are going to be turning over the security to Israel because if not an agreement then what is We have no answer to the what. And the other thing he's at the presser was about not committing when he meets

with the Saudi Prince to bringing up the human rights record. Well, there's a big reason not to bring it up, because we need Saudi Arabia to help us isolate Russian China. If not, if they turned to somebody like a Pakistan, for instance, they too could be in the nuclear business. So there's a lot of challenges here, and I think Joe Biden is showcasing all of those in this in this very short presser today, and none of it left

anybody feeling very comfortable. I wondered if the window for for a deal closes when Vladimir Putin shows up in Tehran next week, Rick, to you, you know, I think I think that this is the whole point I was trying to make earlier, is I don't think Vladimir Putin wants her to be a deal, and we'll know it'll only get worse, not better. So there it is. This

might be over already. It sounds like it if I'm reading you, guys, Rick Davis, Jennie Schanzano, our panel, not just our panel, the signature panel and for the hour. They'll be back after we check in with Eric Wasson, Bloomberg's reporter on Capitol Hill. As now we're looking at a Chip Act that could pass. Will tell you what we mean. Come ing up. This is Bloomberg. It's been built as the golden ticket for computer chip makers, the

Chip Act. Do I need to remind you fifty two billion dollars in incentives for chip makers to make chips here instead of there, to do it in the United States instead of somewhere like Taiwan. It's been locked up in a bigger piece of legislation named at better competing with China. They called it Yuseka. They chilled it to call it the China Competes Act. Has been about ten different names for this thing. But Bloomberg is reporting a

break here. Senator Chuck Schumer is planning to move ahead with well a new plan to vote on a skinny Chip Act, if I can call it that without the broader bill. Now. Senator John Corn of Texas that we heard from earlier this hour on Energy says this is all a big bluff because Democrats know they don't have the votes. Remember this was gonna be like a slam dunk nine months ago. We're joined now by Eric Wasson, Bloomberg reporter on Capitol Hill, who shares the byline, and

it's great to have you back. Eric. Does this actually end up seeing the light of day. I think it may well do so. I think a key break came yesterday when Junior Romando, the Commerce Secretary, came up to Capitol Hill and said the administration would support this, which is going a Chips plus bill the way chips Yeah.

So Chips plus basically is looking like it's the Chip's Bill, which is grant some subsidies for chip makers sixty two billion dollars plus eight what's called the FABS Act, which is basically an investment tax credit for chip manufacturing, maybe about two billion dollars and five g rollout support and basically a couple other odds and them to just get that through. And the reason there's an impast now is because Mitch McConnell, he's trying to use this Chip's Bill,

has leveraged to stop. Democrats are doing this wider bill, yes, which is a code word for a tax and climate and potentially Obamacare bill that they're working on. We have a separate story just out on the terminal now, but how that's been to it. They were going to try to release the tax and energy parts of that this week. It did not come out. Uh. You know, they're trying to get everything done by August, but this is this

deadline is really in jeopardy now. Um, there really was McConnell who put the latest French and that they're trying to slim this down. I asked Nancy Pelosi to a press conference today, would she go along with this because the House has really been pushing a bunch of trade benefits, including payment the workers who were displaced by trade, and she seems open to it. So I think there are

people that are signs. Now. Cornyn did come out and say he's not going to go along with it, but others like Capito, this is the Republican senator from West Virginia said she would vote to get on this chip's Skinney Chips spill. So I think there's some division over among Republicans. Maybe it will work. We could see a vote on Tuesday. Well you should know, and you'd be

proud of us. Eric. We've been walking out hard on on the relationship between these two bills, and of course the lack of time that lawmakers have knowing that they're going to be out for the better part of August. What's realistic here? If this goes through, does that mean reconciliation is a non starter, because I can't imagine how that happens when they come back from August. Well, I mean,

you know, I think the reconciliation could still happen. It's basically, uh, there's there's there's some technical reasons why they can't put it like let's say, mansion center Joe Manager West doing you on section deal with pump out legislation. You know at the beginning next week. They can't go right to the floor because there's a lot of Senate rules issues. They're trying to this very arcane process to get by Republicans.

Basically Democrats alone can do a budget bill and what qualifies as a budget bill that's up to this obscure rules officials to Parliament and they do it in three weeks. Though they could, I'm told by the one of the foremost experts and reconciliation, if they got out the end of next week, they could still possibly make this August for a deadline but it would be very tight after that.

We're really talking about either suspending August. Re says, working in September when they've got to try to fund the government by the end of the month. You know. And and plus there's tax increases in this now. They are designed to be taxes if on the wealthy and and

you know, billionaire warriors and other businesses. But you know, if you do that right before election, is gonna be hard for those vulnerable Democrats to go out and explain these devoters, and easy for opponents to say, Look, they're raising taxes. They're making people who have to pay more for bread and gas pay more in taxes. You know, we've been, as I mentioned, talking about the chip back since the last calendar year. Uh and and Gina Romando

has turned this into a full time job. We heard from Taiwan Semiconductor though, on the other side of the terminal here on the corporate side, Eric and they're talking about slowing demand because well, everything is slowing. We're going into an economic period here of slower growth, if not a recession. A lot of people are pulling back, a lot of companies are pulling back on things. Is this gonna end up passing just as we don't need it. Oh, I don't know. I think it's I think it's necessary

for a bunch of reasons. We've had briefings here what's necessary for national security reasons to have domestic manufacture of this And what Mark Warner came out and when the senators from Virginia said, you know, look, the Intel and others are getting subside agreements from Britain, from Germany. They're gonna lure manufactured offshore. It's gonna lose jobs in the end of the day and threatened national security because we don't have control over So this has to happen for

the long term. As the answer, that's the answer that I'm hearing now. You know, at the end of the day, even if there's this continues to be a Bileneck. Now, it could come back and do it in December on the National Defense Bill. But again what Warner said is you do a delay of months, could be a delay of years because Intel other manufactors will get subsidies and they'll go elsewhere. Well, we already know they delayed the

groundbreaking on this massive campus in Ohio. Right We talked to the Senator Rob Portman about that, and I'm sure he didn't like getting that phone call. I don't know if they're talking to other countries, because I know there's there are a lot of incentives out there. It's quite a buffet for these chip makers here. But I suspect there will be more of those. Gina Romando told us there would be. Eric, if this fifty two billion dollars

doesn't show up, they're going to go somewhere else. Well, that's that's the ironic thing is that they forecast that the Congress would do this, so other countries rushed out through their own program, and then we don't, and they beat us to it. We made the competition more fierce unbelievable. If that's the case, then you've got a busy three weeks, so chips in reconciliation could in fact pass through Congress before the August recesses. The takeaway from Eric Wasson is

that fair? Eric? It could be, but it's always safety bet against because that's a man who's there every day. There is a chance, right that none of them happened, that this is it. Nothing else comes out of this Congress until it's appropriations. That's also true. Yes, Well that's why you're there, Eric, thank you, hasn't been with us

for a while. And one of our best reporters on Capitol Hill, Bloomberg's Eric Wasson on the Fastest Hour in Politics, will add the panel to this because they know what's coming as well. Rick Davis, Genie Schanzano on the Chip Act. And by the way, something wonderful that happened today on Capitol Hill that you'll want to you're about I hope not only here. Well, let's hear it for Woody Williams. I'm Joe Matthew at World Headquarters in New York, and

this is Bloomberg. This is Bloomberg sound on on Bloomberg Radio. People in Washington are talking about the skinny chips. Sounds like something in the diet foods aisle, but it's actually computer chips in a skinny version of the bill that Chuck Schumer thinks she might be able to get past. John Cornyn says it's all a big bluff. Let's reassemble our panel. Rick Davis and Jeanie Schanzano Bloomberg Politics contributors

are with us to add some sense to this. Gennie, I feel almost ridiculous bringing this up because we've been talking about it for a year now, and uh, it's been locked up in this conference committee, well gosh, for months, and so I guess who can blame? Chuck Schumer? Just break this thing apart. The Chips Act is the piece

that everybody seems to agree on. Right, that's right, And you know, I think this is sort of the path that they can pull together in the Senate, at least the sixty votes they need, and I do think that's more than possible. There is some resistance there, but they can pull that together. And the big question is, of course the House. But as you were just discussing, Pelosi

seems open to it. So this is a way to break that stalemate that's been going on in the conference for so long, and the House is refusal to just pass the Senate bill, which is obviously a no go. After a year, I thought this is bipartisan, Wrick. What happened? You know, Look, it's more bipartisan than it that it appears today. I mean, you know, it got passed in a biparson fashion of the House and Senate, and it's

in a in a conference. But this is a different bill than the skinny Chips bill you're discussed and and it's falling prey right now to a power struggle. It's got nothing to do with the legislation or who's voted

for it in the pass. McConnell, I think smartly, So is trying to keep the Senate from passing a reconciliation bill, which will spend another trillion dollars in and have a bunch of talking points for Democrats to go into November with, and he sees the potential for that, and this is the one thing he's got a card to play now. We've seen him cave and negotiate in the past on similar items, and so that's a possibility. But the clock

is ticking. I mean, you know, uh, Eric was saying that this all has to be wrapped up by August four, when recess started, and they take recess seriously in an election year. I mean, this is when they want to go back and see the constituents. So forget reconciliation Genie right, How how could that possibly happen? I know, Eric said they could figure this out in the next three weeks, but I mean that would that would end up in the Guinness Book. With this Congress. You know, I'm not

predicting it will happen. I think the path forward would be something like the skinny Chips. You'd have a skinny reconciliation bill which you know is paired down enough that it focuses just say on Medicare you know something that you know most people, in particular Joe Mantion can agree on, and they can move that forward. I don't know if it will happen. You know, if we were to see and reconciliation, even skinny versions of both, that would be

an astonishing summer. I can't imagine we'd see both, but you know, I guess it is possible at this point. I know the Chips Act is very popular, Rick, but is it in Mitch McConnell's best interest to make sure that that reconciliation bill does not pass? I mean, he could throw up a lot of other obstacles in the next three weeks. He could. I'm not sure he would agree with Eric's analysis that you know, these chip companies could potentially flee the United States for greener past years abroad.

I don't think he would give up. McConnell on the idea that, um uh, that we're gonna at some point incentivize this industry. He just does want to do it between now and a reconciliation bill, and he's got a week to kill so um, I think he's playing a hard card. Uh, Schumer's not in the Senate right now to sort of personally lobby and and and Democrats are gonna have a hard time keeping their caucus together, worn and bluffing by calling this a big bluff though, Rick,

where the votes on it? I think everybody right now is bluffing and the votes that you have enough votes for anything and no votes for everything. God, you must miss this stuff being in the throes of all of it. Uh. Jennie Rick made a great point. Everybody's got to get home for August, and that's going to change a lot of the conversations when when their campaigning, holding town hall meetings,

you know, going out and shaking hands. Everybody gets in earful and they come back thinking a little bit differently about some things. What's this gonna feel like in September? Well? Absolutely, I mean, you know they are going to have an earful from their constituents and their voters, and you know, things like you know tain you know, tax increases are probably going to be a no go at this point. So, yeah, we heard this. You know the famous cases on the

the Obamacare. You go home with one idea in mind, and you go to these town halls and you hear something else and they'll return. So you know, I do think there's a short calendar here. This has to be done in the next fourteen sixteen day ease. Otherwise it's hard to imagine they would have the energy and the votes importantly to do it. Then again, Rick either going to hear about inflation when they go home, and that was supposed to be the idea behind this chip backed right,

so that could prompt chips to pass. I guess maybe, or or maybe they want to go home and say, hey, at least we got this done, but the reconciliation plan, uh could be out of reach. What do you think? Yeah, I think we're We've got a lot of time to go, even though it doesn't seem like it is. And and you could get a chip steal done if that's the only thing that they can agree to do, and it could go fast because again everyone's already voted on this.

Every single component of what they would include in a slim down version has already been voted on and past. So it's just a manner of making something smaller that everybody agrees on that makes it more manageable. And they've got time left on the calendar to get that done. I see this happening in a lot of parallel tracks, and at the end of the day, it's like, you know, the sort of the Mexican standoff. I mean, who blinks first and who gets to vote? And if there's a reconciliation,

you're not going to get a chips vote. If there's a chips vote, it means you've already cut a deal where there won't be reconciled. Is that a blessing in disguise for Democrats? Genie? So they don't have to answer for spending another trillion dollars on the eve of the election. It's a blessing for Democrats, particularly in purple districts. That's

that's for sure. There's going to be some pushback on that, of course, but that may be the play here, right, is that they do the chips, they're able to deliver that. It's a win for Biden and then they don't have to take the hard vote and it wouldn't be the first time Congress has wanted to avoid a hard vote. Joe Biden taking phone calls on this from overseas, You think, Rick is, it does feel like we're getting to a

bit of a crescendo here. Well, the question is is Joe Biden making phone calls because because no one really cares about him if they can't get a bill pass. And what he should care about is doing exactly what Genie was saying, which is, I've got to have that

Chips Act before you guys, lady. And and by the way, I think the Democrats are in a tight bind because you know, they've got these subsidies on our but that you know, aren't you know in the m care that that they have promised the thirteen million people that they're going to fulfill and they don't have those deals done yet, And so it's gonna they're gonna have a lot of egg on their face if they don't get this reconciliation

buil done before election day. We'll tell you Chuck Shumer must be burning the phones right now, reminding everyone listening that he's been out with COVID, which does not make any of this any easier. But I will tell you before we go away today about something that, something wonderful that happened in the Capitol today, and it had nothing to do with legislation. Bring us inside the Capitol rotunda, justin.

Our nation was richly blessed by the life Boody Williams, and we trust he now rests with his father, from whom all blessings. What is passing? We have lost a deeply selfless American and a vital link to our nation's greatest generation. How about that Nancy Pelosi and Mitch McConnell agree on this, And of course, well couldn't they. Woody Williams.

You might have seen a story about him in the last couple of weeks, the last surviving World War Two Medal of Honor recipient in honor today laying an honor in the U. S Capitol Rotunda. He died the end of June, June eight years old. Presented it was just an incredible story, presented with the Congressional Medal of Honor by President Truman in ve he had just gotten back, somehow survived the Battle of io Jima, where he took out a couple of Japanese pill boxes by putting his

life on the line. He was one of these guys with a flame thrower. I used to hear about those guys from my grandfather, the late Joe Matthew, who also fought on Ewo Jima. He was in the fifth Marine Division, and I'd hear stories about those guys with the flamethrowers. Not to mention these guys who were taking out the pill boxes and putting their lives on the line, like Woody. He served as a member of the Marine Corps with

the twenty first Marines, third Marine Division. And pretty great today, Rick to see this incredible at the same time, the last surviving World War Two Medal of Honor recipient as certainly the end of an era. It's an incredible story his life. Diminutive guy, I don't think you ever weighed more than about a hundred forty pounds. And and and yet he was a leader. Uh. He established himself early in his life as someone who's willing to give back

to the community. Uh. He's just been a beacon of hope and and inspiration and and and it was wonderful to see, even though it's a solemn event at the Capitol, all the Republicans and Democrats together that's honoring this man who gave so much to his country. He spent a lot of time working with the Department of Veterans Affairs, thirty years of of giving back and traveling around talking

to veterans and trying to make their lives better. Genie, to see all those d's and ours in that room today, it's a pretty major statement on what a wonderful contribution he made. It was in the Marine Corps band playing while they were walking around the casket. It was a beautiful picture and to see. And of course there is still a lot to be done for veterans in this country.

There's been bills just this week that people have been talking about and so you know, Woody would probably be the first one to advocate on behalf of the veterans in that regard. His valor in combat enshrined, as Mitch McConnell reminded us today aboard the u S. S Hershall Williams, the Hershall Williams Armed Forces Reserve Center. His commitment to his fellow veterans inspires care givers and I wonder if they could do something to help the v A right now in his name, Rick, what is the v A

need right now. You know, I think that it's this kind of inspiration that the VA should go out and be able to talk about how um, you know, the network of veterans, regardless of what war they served in, you know, as a tight knit community and one that holds together. Um, you know, they've been under a lot of pressure over the last decade and and you know, uh, Woody Williams, is is something that I think they should be talking about for the rest of our lives. Here here,

Rick Davis and Jeannie Chanzano. Thanks so much to both of you for another great conversation. We dig into some pretty heavy stuff on this program, and that's why we need Rick and Jeanie to show us the way. Sometimes on the fastest hour in politics, I'm Joe Matthew at World Headquarters in New York. I'll meet you back here tomorrow and also meet you at high noon Wall Street time on Balance of Power. If you showed up late, subscribe to the podcast and I'll see you here on

the Friday edition. I'm Joe Matthew, and this is Bloomberg