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I hope you're looking forward to a long weekend wherever you're joining us here on the radio, on the satellite, and on YouTube. This is Ballance of Power, the Friday edition. Doesn't it feel good to say that? And I'll tell you what Washington has already cleared out. My ninety minute commute on Tuesday, same exact drive took me nineteen minutes today, which gives you a sense of where we are here
inside the bubble. Good luck finding anyone, but you can find a table at the restaurant of your choice, So good luck. If you're a weekend warrior here heading out on the roads or the airlines. By God, it's going to be an interesting one as the candidates try to put themselves in the best position they can on this holiday weekend. Donald Trump in the Bronx last night, What
do we think of this? The headline in the New York Times and a Trump rally in the Bronx, chance of build that wall and great color from the scene in front of him. A more diverse crowd, as I read, than typical of his rallies, with many black and Hispanic voters wearing Maga hats in New York City last night. Donald Trump says he can win it. Most people don't
think that is possible. We'll talk to it about it now with Gregory Cordy, who's of course always got his eyes on the campaign trail, Bloomberg News, White House and Politics for Porter. Great to see the Bronx. Huh yeah, felt like Friday last night for Donald Trump. I guess he's not serious, right? Is he a contender in New York? For starters? Is that in an alternate universe.
He's talking a big game. But I will believe it the moment that the Trump campaign spends a dime on television advertising in the New York market. It's a very expensive market to advertise in. It's a huge state. It's a tough state to win. It would be delusional to think that he could win it. But he's He's there for two reasons. One is that he's there anyway, because he's on trial in New York, so he's on a
pretty short leash. And while he's there, he's decided to make some lemonade out of the lemons that the Manhattan District Attorney has given him. And also because being in New York is a good foil for his audience, right he can campaign against New York to the rest of the country, which is popular in a lot of parts of.
The clean up this mess in the city, he says, we'll clean up the subways.
Do you think he's ever been on the New York subway? You know, you would have to think in his entire life he would have had to. But I've been looking for a photograph preckory. I can't find one.
Seventies, eighties, ninety Yeah, okay, so a couple of questions here. Then that's New York. How about the demographics we saw at this rally last night. Are we to believe that Donald Trump, and we have polling on this, is in fact pulling black and Latino voters into the fold in this campaign and away from Joe Biden.
You know that remains to be seen right now. If you look at the polling, he does seem to be making inroads. But remember that we're six months out, and what we see from you know, a lot of voters, not just Black and Hispanic voters, but a lot of voters like to talk about being undecided. They like to say tell posters that are keeping an open mind. And particularly among black voters who really want you to earn their vote year after year, a lot of them have
been sitting on the sidelines. Much higher numbers of undecided voters in that community, and that's what's been depressing Joe Biden's numbers there. But look, you have to give him credit. Trump himself is seeing numbers in the two ease among
Black voters, even higher among Hispanic voters. As the Hispanic population in this country begins to mature, right where you have first and second generation families now becoming third and fourth generation families, as they become more integrated into parts of American society and lose some of maybe that the Hispanic identity that yes they have becoming more Republican, and that is a generational thing. It's a long term thing, and Trump is taking advantage of it.
This really interesting moment, and we're told that the commander in chief was sort of employing the powers of incumbency here with the state visit this week with the Kenyan president. It was interesting when you look at the guest list for that state dinner last night, to what extent was that messaging to the demographic we're describing.
You know, I'm not sure. Look, it is, as we've been reporting, the first state dinner to honor an African head of state.
In sixteen years.
Remarkable to me looking back on it. I covered the Obama administration that President Obama, who has ancestry in Kenya, would not have done this.
It's he unlike Joe Biden, visited Africa, which is something that this president has promised to do.
Yes, and Africa always gets talked about, but almost as an afterthought in foreign policy. It's becoming increasingly important, as is much of the global South with the rivalry with China, and we may be entering a new sort of soft
Cold War here. But in terms of US voters domestic politics, look, there are a lot of constituencies, especially democratic constituencies, who think that Joe Biden is maybe spending too much time on foreign policy, and he has had some foreign policy issues to deal with, not just China, but talk about Israel, and you talk about Ukraine, and given where we are with the given where we are with the economy, there is a strong feeling in many parts of even the
Biden coalition that he needs to spend more time at home. And that's going to be challenging because he's about to go off to the G seven and in France and Normandy, all very important parts of what a president does. But it's an election year and that's why you know there's going to continue to be this tension.
Greg Ricordi, thank you as always for stopping by reporting for Bloomberg from Washington. I'm Joe Matthew. This is balance of power, and I'm glad you're with us here on the radio, on the satellite, and on YouTube. It was at the bilateral news conference that Joe Biden held with the President of Kenya yesterday that the matter of Israel came up.
We expected this would be the case. Of course, the Biden Whitehouse wanted to talk about investments in Kenya and throughout the continent, but reporters are going to ask what they want to ask about, and the matter of the ICC came up. These arrest warrants that we're understanding are being pursued for Israeli leaders, including Prime Minister Benjamin Ettnya, who himself right alongside leaders of Hamas. Joe Biden, responding to a question about this yesterday in the East Room, let's listen.
Made our position clear on the icc We don't think, we don't recognize the jurisdiction hi ic C, the ways being exercised, and it's that simple. We don't think there's an equivalence between what Israel Mohammasti.
Fast forward to news today the UN's top court ordering Israel to immediately halt its military operations in Rafa, partially granting a request by South Africa in a case over genocide allegations. This is where we start our conversation with Hidar Suskan. He is now president CEO of Americans for Peace, served as sergeant first class in the IDF and it's
great to have you back. Kadar, your thoughts first on this latest development from the International Court of Justice, which I am sure frankly most Americans have never heard of. This is unenforceable, but it's an important message. How will Israel respond well?
Israeli political leaders, starting with President, with Prime Minister NITTANYAHUO. But going frankly all the way through, the opposition are of course opposed to this. They believe that, you know, that the International Criminal Court, that the ICJ, that these institutions don't have jurisdiction and frankly don't have Israel's interests at heart. So that's the broad response of the Israeli government.
I will say, there is a range of different views within the Israeli population, and many of those believe that, you know, these things are reflective of the politics, but in a way where we shouldn't look at them as scoring a goal for one team or the other. So it's not good, it's not bad. It is a tragic reflection of the reality that Israelis and Palestinians find themselves in of months and months and months of ongoing war that is again only tragic for both sides.
Well, as I mentioned, South Africa is alleging genocide. The language here becomes important. Israel of course denies that how should this be described?
You know, one of the things, and you know, I apologize to going back to the same frame so often, but it continues to be true that so often folks on both sides are pushing to the extremes, using straw man arguments, using the most extreme language. So you know, whether this is genocide or not, whether that's you know, simply in all of Gaza and Rapha can be argued. I am not an international law expert to give a definition of that, but there's no question that it's horrific,
and there's no question that it's tragic. So it doesn't need to be genocide in order to be horrible and to be opposed. And likewise, I heard, you know, in your earlier conversation the questions coming up about, you know, is there equivalency or is the is the International Court trying to create an equivalency between Kamas and the Israeli leadership,
which again is a straw man argument. The International Court has brought these charges against or all for these warrants against both Prime Mister Natanyahu and Defense Minister Galan and against COMMAS leaders. They didn't say their equivalent, they didn't say they did the same thing. Frankly, the charges are many of them different. So the equivalency argument is again just people falling back trying to use these straw man arguments as opposed to really dealing with the facts. What's
happening on the ground. Tens of thousands of people have been killed in Gaza. That's a fact, no one in question. People still argue about the exact number and argue about how many are compatants, but there's no question that tens of thousands of people have died, that people are suffering from hunger if not found, and thousands and thousands of homes and buildings have been destroyed. It's horrific. And again, going back to the Hama side, October seventh is unquestionably
war crimes. They killed twelve hundred people, they took hostage as civilians. So all of these things candy and should be strongly opposed without fighting over whether or not it is equivalent. It doesn't have to be equivalent to all be wrong.
Well, we get lost in the language here, very often lost in the jargon for sure, and I'd like to talk to you a lot of what is happening on the ground. You're absolutely right. It's one thing that we specialize in here and we waste a lot of time doing it. Haadar. One thing that has been accomplished is the construction of this temporary peer with tens of millions of dollars and a lot of effort by the US military.
It's barely being used, is what we understand. How would you describe the current state on the ground when it comes to delivering humanitarian aid, Well, that.
Is extremely, extremely problematic for sure. The state of delivering aid overall, it changes very regularly with announcements by the Israeli government that they've opened or closed a specific crossing. Also, those announcements are not always met by reality on the ground, but actually have been a lot of questions as to whether any aid that has come in through this US funded peer has actually reached people in Gaza. It's unclear,
but there have been claims both ways. What I think is clear is that it is just a reflection of how broken the politics is that this peer is necessary at all. Right, it is not physically necessary to build this peer in order to bring in more aid. All that was necessary is opening the crossings. There's no question that bringing it in by truck through Israel, through the crossings in both the north and the south of Gaza
is by far more effective. The US did this, built this peer, spent I think hundreds of millions of dollars, not tens of millions because they couldn't get the Israeli government to agree to open those crossings, and so this was a workaround the fact that the US government felt it necessary, work around the obstruction of Prime Minister Natanyahu. I think speaks for itself.
Speaks for itself. Where are we going to be a couple of weeks from now, because the White House is trying to walk a line on Rafa, a red line? Dare i say? As President Biden articulated a couple of weeks ago. The fact of the matter is we haven't seen the full on invasion and occupation of Rafa that some expected. It's been referred to as a limited incursion
and therefore not a violation of the red line. When you put your IDF hat back on headar what's going on in Rafa And is this the extent to which we're going to see the military involved?
Well, I think if you look at reporting limited though it is coming out of Rawa, people don't consider this a targeted invasion. Again, Initially, the Israeli response was that they were not invading and certainly not occupying the city of Raffa, but rather just the crossing between Gaza and Egypt. They did that, they then did move forward. They have increasingly bombed and taken taken military further and further in. They are doing it in a slow, specific way. I mean,
it's pretty clear. It's one of these here's the line. Okay, is my toe over the line?
Now?
Okay? What about now?
What about now?
And again President Biden said, a full invasion of Rafa is the red line, but that hasn't been defined what exactly that means. And so that's what the dance is right now. Whether this will continue in this way, I don't know, you know, I hope that what we're going to see is an end to this, an end to this war, which.
Is what I want you to come back and talk to us as we feel our way through this. Sidar, I wish we had more time. As always, Adar Suskan with the Mayor Frickins for Peace. I'm Joe Matthew in Washington, will continue our conversation ahead with an eye on the campaign trail and Governor Chris Sanunu. This is Bloomberg.
You're listening to the Bloomberg Balance of Power podcast.
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Welcome to the Friday edition of Ballots of Power on Bloomberg TV and Radio. I'm Joe Matthew. Just a couple days ago, Nikki Haley made big news here in Washington announcing her intention to vote for Donald Trump. A lot of questions about whether that was in fact a real endorsement of the former president, as she did not tell
her supporters to do the same. She in fact encouraged Donald Trump to work for their support, something I discussed yesterday in a wide ranging conversation about the presidential camp with the Governor of New Hampshire, Chris Sanunu, of course, an ardent supporter of Nicki Haley when she was on the campaign trail. Here's what he said.
People will say, well, if you're if you're voting for them, are you endorsing them, supporting them? Are you campaigning with I think I would never speak for Nicki Haley, but like myself, I'm gonna We're gonna vote for Obviously, we have a lot of complaints about Donald Trump, as a lot of folks do. But elections are about choices, they really are. It's A or B. You don't have to be all or one in extreme one way or the other.
But if you want democracy to work, you got to get out there and vote in a lot of folks say, gee, we don't like the bombastic style of Trump, we don't like the chaos, but we need a change, We need results. We need somebody to do something about inflation, about the border. Those are the top issues. And I think Nikki did a great job kind of pointing that out that look, people care about issues. You have to talk about these issues.
You have to. You can't just kind of say, we know you have record credit card debt, but ignore that. You're all fine. Bi nomics is working. It's not right, and so we call that gas lighting, right, you know, basically not validating the reality that a lot of us are a lot of individuals are feeling right now. And if anything, that's where I think Biden has really kind of screwed this thing up. Well, so to say it's telling people that it's working when it's clearly understood.
Some would say as well, with Donald Trump's association with the economy that we see bearing out in the polls, that that doesn't match with his record on the deficit, for instance, Sider, which I know is a big issue for you and a big issue for Nikki Hailey. Did you help her work through this? Did you arrive at this decision together?
No?
No.
I love Nikki. I think she's the best I wanted since she got out of the race. I wanted her to be nothing but happy spending some time with her, her family. Her husband finally got home after nearly a year long deployment, so I know she's spending a lot of time with him and that that's been wonderful. She came out and you know, she had an event yesterday, was asked and she said she was going to vote
for Trump. But I think she also made a really critical point, which was there's a lot of voters out there that have to be earned and Trump has to do some work. He's got to do some work on the issues. He's got to do some work to make sure that all those folks that may not voted for him in the primary on the Republican side are going to come home and they're not going to do it just because he's got to go earn him. But there's
time for him to do that. Biden has a bigger challenge on his hands, I think, and that I think Biden's base has walked from him more than the Trump base has walked from Trump. I think independents are walking away from Biden. I think the younger voters that really should be all with Biden right now a lot of them which won't vote. So Biden has his own set of chores in the next.
Well, that's clear, and it's bearing out on our own polling here at Bloomberg and my god, the Trump base won't budge even as he sits in criminal court. But she said more than as you point out, more than just that she was going to vote for him. There was one particular line that stuck out to me, a loud part She said, of each party wants us to abandon our allies, appease our enemies, and focus only on
the problems we have at home. She said, this worldview has already put America in great danger, and the threat is mounting by the day. That sounds like she's speaking to Donald Trump, who's the audience there.
Well, So a couple of things when it comes to foreign po policy, appreciating that you get world peace through America's strength. I think there's no one better in understanding those issues than Nikki Haley. So I think she's just spotted.
She worried about protectionists bent in the Republican Party.
It's not just the Republican Party. Look, when you look at folks that say international issues are the most important, it's about US fifty to fifty split those who think Trump. Look, Trump portrays an image of strength that Biden doesn't portray. I think, but some of Biden's policies were more in line with with where we should be, but he doesn't portray the strength. He's kind of gone back and forth on Israel, right, I'm a big supporter of Israel. Got
to stand with him unquestionably. He was unquestionably with him on May seventh, and on May eighth, He's like, by the way, we're gonna withhold weapons, so you can't have your foot half in and half out. That kind of
inconsistency is a problem for Biden. I think some of Trump's statements, you know, quasi supportive of Putin and you know, calling him this smart guy and all of that, that sort of thing that stuff scares people as well, So I think they're both have a lot of problems on the international front.
Well, this is an interesting view to hear from you on both these because you know, it's supposed to be my job to try to make you turn into a pretzel to explain to me why you want to vote for Donald Trump or plan to vote for Donald trup. Of course, after effectively mounting a strong campaign against him
and helping Nicki Haley, you've already done that interview. I want to bring it back to the Snowshoe Club conquered the night before the primary, and there was hope inside the barn that night that something different, that there was an alternative, and this person, Nicki Haley, had everybody talking as they were drinking by the fire and wondering what might happen the next day after you did a lot of work in the state for her. What happens to
those old line Reagan Republicans. What happens to the donors who followed Nicki Haley or the suburban women who support still and by the way, some early primaries that we've seen, they're still showing up in primaries for Nicki Haley. Did they stay home.
What do you tell them to I think, look, the majority of them will come over and vote for Trump. But I think NICKI made a great point. There's still a lot of them and that have to be earned. And I go back to that point, it's not that they can't be earned. Well, then the base come over Trump man, Probably not not like you know, not like
they had in the past. I don't think so. I think a lot of the significant Republican donor base is going to put their money into the Senate seats, the governorships, the congressional race is really trying to you know, drive that home there. Trump has kind of co opted a bit the RNC to be his his kind of donor feeder system. But they're having a they've had some success. I don't think it's going to be like it was
back in twenty sixteen and even in twenty twenty. The voter that the voters themselves, though, those are the ones that have to be spoken to, and there's plenty of time for Trump to do that if he wants to earn them. On the Republican side, Like I said, I don't think there's any policy changes Biden could implement today to get an appreciable different result that would drive people
back over to him. So Biden's in a tougher position right now where it goes with everyone's looking at the trials, right Sure, I don't think the trials have an appreciable difference in this in this campaign.
Conviction does that feel different?
No?
No, Look, I'll say this, three things are going to happen. He's either innocent, and that's a big win for Trump because not only would he be off on this one, but he would then claim that all the others are politically motivated and it would put a shadow of a doubt on all of them. Same with a hung jury, he probably gets the same result a conviction. People say, yeah, well, you know, uh, I just don't think it's going to
drive people away from him. And if you are driven away by that, I respect you're right to say that that's a line too far. If he's convicted, keeping Penance away from him, I don't think so, because independence is Trump even with a conviction. If they've already broken away from Biden, it's because they don't like the convictions. They don't like January sixth, they don't like election Nile. But they are getting crushed by inflation. Inflation is the issue
of the day, there's no question about it. And and the border. Those are the still remain to be the top two issues, and those are really bad when Biden doesn't do well with those at all.
And that's driving the Republican convention in Milwaukee. Will you have a message for delegates?
No, not really. No. I look at the convention. It's going to be a fade of complete Trump's going to be the nominated. It'll be kind of Trump Trumpville Convention. I don't if I go out there? Maybell go?
Do so?
Corn in the Republican Party? Shouldn't he invite Chris Snunu.
No, I've been invited. I've been invited, and yeah, I mean I don't know to speak. I don't know if they've settled all that, but I've been invited. I may go out. I may not. It really depends on the schedule. But if anything, it's a logistics Nightmare's like a lot of travel. You gotta stay like an hour or even I think avengers are a big, a big logistics mess. Well, yeah, it's got to like go to the super Bowl. I think I'd rather just watch it from home.
Donald Trump has found religion on early voting, which I find fascinating. He's encouraging people to embrace this now after demonizing it for years. This requires a re education, some would argue of a Republican electorate who now think early voting is evil.
Yeah, I will say this. I don't like early voting either. I don't think Trump likes early voting. But I think with the Republican parties are saying, if the rules in your state allow for early voting, then get out and do early voting. Play by the rules. Don't just sit there and don't do absentee or don't do early voting. You got to play by the rules to make sure you're getting out the vote, because that's what this is all about.
The cards.
Yeah.
So I don't think any of us like early voting. I think there's a lot of problems with it. But in the states where it's allowed, you better play by those rules, and Republicans better go out there and work hard at.
We saw something very troubling in our latest Bloomberg Swing State pole. It came out just yesterday. Half of the electorate in the swing states that are going to decide the selection are fearing violence. They fear an outbreak of violence surrounding this selection, the conventions we just mentioned around the election itself. If it's undecided for days, people have shades of January sixth still, of course in their memories, but it was equal shares. Democrats and Republicans had this
same fear. What are governors like you going to have to do to keep this.
Well, let's understand why that is. You're seeing what's happening on college campuses right now, the protest, the violence. It's not peaceful protests. They think as long as it's in the name of social justice, it's okay to break the rules and break the law. It's not. It's absolutely not. We are a nation of laws and you have to nip it. So as governors, for example, you know, when we looked at what was happening in the universities, we
were very proactive. We talked to them. We're transparent. What are the rules, where are the guidelines? Where will you make arrest hold folks accountable? If you kind of nip it in the butt early, you can really make sure that it doesn't fester to something. Bigger states that didn't handle it earlier, university systems that didn't handle it early, bring in law enforcement, do the right thing. They're the
ones that are suffering the most. On the other side of things, you have the election denial and all that sort of thing, the fears of January sixth, that's legitimate. We've seen it sprout up in January sixth, and so obviously there's concerns on the other side there. The one thing I try to encourage folks is to be optimistic. All the election denial. Guess what, Biden won the election and he was deemed the winner, and there was a
smooth transition of power post January sixth. But on January twentieth, yes, Fiden slept at the White House, right, so it worked out. And so I've had volks say, yeah, but I was from Arizona and they said my vote didn't count. But it did count, and even though they challenged it, the system worked right. The institution stood strong through all those wins and all those pressures are instances.
And you believe they will again.
I do. I believe in the institutions that Look, our institutions have stood strong through everything from Civil Wars, World Wars, Pandemics nine to eleven. January sixth. It's they're tough times, they're big bumps in the road, but man our founding fathers really designed the system well and believe in it because it has worked up until now. And I'm so I'm very optimistic about even though there may be bumps in the road and complaints on both sides or whatever
might come, America is going to be okay. Son's going to come up.
You love being in Washington. I know you want to stay here as long as he can. But when you're back home and you're walking down Elm Street in Manchester and you're talking to people, what is it that gives you hope? What are we missing here in the Capitol?
Look, I would say this, there's a lot of talk about democracy being eroded, and I go back to that, and if anything, I tell people, I'm not trying to tell you how to vote. I'm not trying you vote for Trump, vote for Trump, vote for Biden, and vo for Biden. Do whatever you want, but vote. Do not let anyone tell you, well, just don't vote. That's the most Unamerican thing you can do, because so many people on this planet don't have the ability to vote and
choose their leadership. And at the heart of it. You can't say democracies being eroded, democracy is being threatened, But I won't participate in democracy. That's crazy, right. Your vote is all that will decide who leads this country, who leads your school board, who leads in your governorships or your mayor. Your vote is everything to that process. So don't waste the opportunity to make sure your voice is here.
Your voice is as valid it has merit. I mean, we've had presidential elections go back to two thousand that have come down to a couple hundred votes here or there. You never know where it's going to be in all of these toss up states. As you pointed out, even New Hampshire now is a toss up. Holy smokes, that hasn't happened in twenty years. It's always been Democrats on
the presidential side have always won. They have this really awesome Republican governor, but the Democrats on the presidential side of one for quite a while. But again, you just don't know what's going to happen. So I think you're going to see a higher voter turnout than most people think. I think what gives me hope is that the institution stands strong. Your vote does matter, and I have a lot of confidence that, regardless of the outcome, we are going to have a peaceful transition of power.
The Governor of New Hampshire, Chris Sanunu, many thanks for sitting down with us and being so generous with his time. I'm Joe Matthew in Washington. You're listening to the Bloomberg Balance of Power podcast. Catch us live weekdays at noon Eastern on Apocarplay and Android outo with the Bloomberg Business App.
Listen on demand wherever you get your podcasts, or watch us live on YouTube.
Welcome to the Friday edition of Balance of Power. I'm Joe Matthew on Bloomberg TV and Radio. On the week that crypto grew up in Washington, That's what I keep hearing. At least we've talked about this each step of the way, and House passage of the FIT twenty one Market Structure Bill this week was the moment, and the cherry on top might have been the Ethereum ETFs being approved by the SEC. This has all been driven in part with the help of Congressman French Hill, Republican from Arkansas and
only serves on the House Financial Services Committee. It's important. He is chair of the subcommittee on Digital Assets, Financial Technology, and Inclusion, and he's with us at the table on this Friday. What a treat to see you in studios. They're welcome, great to be with you. So are you taking a victory lap here? This is something that a lot of people didn't think could happen in this Congress.
It's a big issue and I'm so glad to see such a strong bipartisan vote. Two hundred and seventy nine members of the House voted for our Market Structure Bill, which gives clarity for the first time in a roadmap for digital assets, how to offer them where they trade, whether it's under SEC rules or the CFTC rules, how to be a dealer, how to be a broker, how to doodan be a custodian. So this was a big bipartisan success.
It needs to go to the Senate now, where I'm told it's a steeper client. We've had some tell us that it does not have the votes to pass the Senate.
What are you hearing, well, what's interesting Over the past two years working for Payment Stay legislation, which is a dollar backed private stable coin issued by the private sector, not a central bank digital currency. That work has bipartisan support. I've seen leaders in the Senate speak out in favor of that, and on the Market Structure bill, We've had Senate interest for years on that. Senators Loomis and Jilliran, for example, have been working on ideas there. Senator's Stabinaw
and Bozeman had been working on ideas. So I think we're listening to senators. I think our big vote two hundred and seventy nine votes in favor seventy one Democrat votes in favor, will help send a message that we've got text on market structure in a pretty good place to start working with the Senator.
The alternative is come on down and register. Would this have happened without the approach that Gary Gensler has taken from the SEC.
Well Chair Clayton under the Trump administration, Chair Gensler here in the Bide administration could have used eempt of relief along the way to narrow some of these regulatory gaps. But President Biden himself in their Executive Order and in the Financial Stability Oversight Council's report says there's a regulatory gap between commodities, securities and how to do this in the right way, and they argued that it should have
been a legislative solution. So I do think we've taken the right direction to have a legislated solution, and that perhaps neither Chairman Gensler at the SEC and certainly Chairman Venom at the CFTC could not really do it in a full effective way without legislation.
Well, a lot of as you know, crypto executives felt like they were being set up, that there was no real way to navigate because there were no rules to the road and just coming in to quote unquote register might cost you a quarter of a million dollars in attorney's fees in dealing with the SEC.
Or more I mean or more or effectively, that just wasn't happening. Coming in register was just a black hole. There was no exit. It was the original Hotel California. You could check in, but you couldn't check out on that process. And so that's why again I think a legislative solution is the best way to go, and it'll be more effective for everybody in the space, innovators, venture capitalists, consumer protection investors.
I mentioned the ethereum ETFs. Of course, now on the heels of the Bitcoin ETFs is the institutional involvement that is predicted to follow here. Really what helps crypto mature? It helps your argument in Washington.
I think so.
I think look, Chairman Clayton and Chairman Genslert didn't feel like they had the right analytical framework to approve an exchange traded product for bitcoin, But after analysis and the work of Commissioner Perse, they found that the cash market and the analytics around that looks stable, and so they
approve bitcoin. The Federal court said they should approve bitcoin ETP, and I think that federal court litigation and the analytic work done by the Commission staff pave the way for this ethereum decision.
This week? Is stable coin next? Then you mentioned that there was talk about that maybe being put together with safe banking during the FAA extension. None of them happened, right, what's the way forward?
Well, I think a payment's dollar back payment stable coin under US law with US oversight is a real critical need for this ecosystem, and so I do expect it to be next. I think Ranking Member Maxine Waters on the Financial Services Committee, Chairman Patrick McHenry have done a great job working on this. We've had tremendous engagement from the US Treasury and the Federal Reserve. So I think we're close. But you're right, we're looking for that legislative
vehicle for payment stable coins. But to your point a few minutes ago about the Senate, I think there's solid Senate and House support to move that as well. We just have to find the right approach.
Maybe post election on the edge.
Could be I mean we're going to wait, and a lot of.
Money and floating around in his campaign all of a sudden, isn't there.
I've seen that you have.
Yeah, and and it's impacting some races in a big way. As we spend time with Congressman french Hill, I want you to put your hat on another committee, and that's Foreign Affairs. This has been a very busy week from China to Israel, and i'd like to ask you about both. You may be preparing a codel right now and to go somewhere interesting in the world that you can tell
us about. But the drills that we're seeing around Taiwan, i'd love to hear you speak to because this has been framed the biggest drills we've seen in some time by Beijing and the Taiwan Straight framed his punishment for swearing in their new president. I spoke yesterday with the ranking member on the China Selectivity, the House China Selectivity, of course, Roger christ the Morphy. Here's what he said about what appears to be a deteriorating relationship once again, Congressman, let's listen.
I don't think it's maybe deteriorating as much as it's continuing to be maybe unresolved.
I think that it's really up to Chizing Ping Joe.
I think that he needs to make a decision, which is does he continue with this policy of aggression and provocative behavior which could potentially lead to dangerous and catastrophic consequences and the Taiwan Straight and the South China Sea.
How much of this is a danger an increasing level of danger versus you know what we see this movie every time Taiwan makes noise.
Well, it is it is a pattern of the Shi regime to intensify their military drills and be in a menacing and threatening away across the narrow Taiwan Straight Whenever there appears to be progress towards supporting democracy on the island. Here we have the inauguration of a new democratically elected leader of Taiwan. Chairman Mike McCall, the Foreign Affairs Committee, is lead leading our delegation to that inaugura. But you saw the same kind of behavior when Nancy Pelosi visited
the island. When Chairman McCall and I were on the island last April, yes, we had the exact same greeting.
They want to remind you that they could do a blockade in about five minutes if they wanted.
They do.
Look, I think fundamentally Taiwan is a great democratic, economic, free market success story. They're big investors in China. The people of Taiwan want the status quo. They want to maintain their democracy, free and open navigation of the Taiwan straight. They don't want to be, by warfare or force or coercion, compelled to join the communist regime in Beijing.
She knows this, but this is.
How he tries to pull the string of his long standing policy. Our policy here in the United States was founded back in nineteen seventy nine, where we committed that while we recognized China and Beijing is the capital of China formally that we would maintain our economic policy and our defense policy of the people of Taiwan and let them build their democracy and by GWI, over the last forty years, have they been successful in doing that?
That's something. Would you go back to Taiwan knowing all of this.
I would? I think.
I think it's a magnificent, generous, innovative, amazing spark.
More drills for them to deal with after you left.
Well, look, I think they want America, Japan, South Korea, the Philippines, Vietnam, regional players supporting them in their interest to pursue freedom. But status quo, not independence of China. Just let's keep the status quo which allows our system to thrive. But the fear on the island is China turn their back on Hong Kong. They broke their word to the United Kingdom and the people of Hong Kong, and that's what's caused tensions in the region to remain high.
The UN's top courts, the International Court of Justice, am I saying it. I don't think most people have ever heard of this before, to be honest with you, While it is of course very real, The International Court of Justice says that Israel needs to pull military operations from Rafa now, and this GEME as part of a complaint by South Africa that alleged genocide in Gaza. We've got a new temporary peer that we just spent a lot of money on that doesn't seem to be bringing much
aid into Gaza. What needs to happen.
I think we need to stand with Israel and let Israel use their best judgment on clearing the Hamas terror group out of Gaza.
Are they still in Rafa?
Do we know there are elements still in Rafa? They still are in a position to attack. We have more dead bodies of hostages announced today. This is a terrible situation. And remember that Israel has suffered an attack on the scale larger than our attack of nine to eleven from their point of view, by a terror group back by financed by Iran, an enemy of the United States. So I think we should stand by our ally and let them take the actions that they need to take to defend their.
Own You don't believe it's genocide, obviously I don't.
And I think that the International Court in this instance is wrong. We're not a party to that treaty, so we don't even think highly enough of that organization to be a subscriber to it. And I think what we ought to recognize is that we don't want this conflict to get broader. We need humanitarian aid there, and we need to recognize that Hamas is a political organization and a terror group back by their allies like those in Turkey and Tehran have facilitated this kind of behavior through
their financing and their tolerance. And for twenty years Hamas is controlled Gaza. A lot of Americans don't know this. The Israeli government, the West Bank government, Fata Mamuda Boss Americans, the Egyptians. They allowed Hamas, they won an election in two thousand and six. They've had complete control of Godsma. Are the people better off under Gods? What about the billions of dollars from the United Nations and donor countries. Do you see better schools? Do you see better nutrition?
Do you see better jobs under the Hamas leadership?
So should Benjaminett? Yeah, who come here to speak to a joint session of Congress because the speaker is reportedly on the verge of inviting him.
I think he should. I think outlli of the United States under attack by a group of people that we recognize as a global terror organization backed by the number one state sponsor of Iran, deserves to be heard in the United States.
What if Chuck Schumer says no, does he come speak to the House alone? I would think that would be quite out of optics.
I don't think that that's the way it would work. I believe that the Majority leader would think long and hard about that.
What are you planning? Probably not allowed to answer this for your next trip abroad. You've been conducting some pretty heady codels, including one recently to Syria. What's next on the list?
Well, I'm still concerned about countering the Assad regime and turning a terror state like Syria into a regional drug proliferation state in narco terrorism that is poisoning young people across the Gulf and into Europe. So that's certainly something I'll remain committed to working on. Not going to Lower Manhattan anytime, Not anytime. So Tom Emmer was on there.
I tell you he's struggling to keep the schedule working correctly because so many people are going to New York to.
We need all of our members available for voting. We have a two seat majority. Now we're delighted to have the new gentleman from Bakersfield, California.
Has Vince Fon come by the office yet.
He has, and he'll be sworn in and we look forward to his addition to our team.
Well, we always look forward to spending time with you. Thank you for coming, Thank you, Thanks you last out of town. I hope you have a great holiday, happy Memorial. Thank you very much. I'm Joe Matthew and Washington. That's Congressman french Hill. As we assembled our panel for a quick hit on the issue that we were just talking about, the invitation of Benjamin Netanya, who that appears to be looming.
Gidi Schanzeno is with us today, of course, Bloomberg Politics contributor and senior Democracy Fellow with the Center for the Study of the Presidency in Congress, alongside Marigillespie, Republican strategist, founder of Blue Stack Strategies. Jinny, is this going to happen? And if so, does Chuck Schumer need to get on board and invite Benjamin Neettanya how to speak to a joint session of Congress?
Yeah, I think he should. I think he will. It certainly is an example of Johnson taking it to the Democrats. This is a tough one for the Democrats, but I think, you know, the Majority leader needs to make the case that he is supportive as Chuck Schumer always has been of Israel. It is this policies of net Nyahu that he has an issue with and that that invitation should be forthcoming. So I think he will do that, but it's not going to be easy for the Democrats. This is Johnson has done a good one.
Here more of your thoughts on this. You worked for a speaker. What would it say if that invitation went out without the cooperation of the Senate leader?
You know, I was there with a Speaker Brainer when naw who came to Congress previously under Speaker Brainer's invitation. And yes, it's preferred that it's a unified invitation, that that goes out in good faith by the Majority Leader as well as the Speaker of the House. But you know, the Speaker is the speaker of the whole House, and
it's his opportunity to do so. And I think, you know, for the American people, it'll be an important opportunity to hear from net Yahoo to support Israel, to Genie's point is not necessarily to say that you support NAT and Yahoo, but we as an ally of Israel, need to hear about what's going on there directly from the sources.
Well, we'll discuss it a lot more as we learn more about this invitation. Our panel is going to stick with us, though, Genie and Mora. As Donald Trump makes tracks to the Bronx Big Rally last night, it looked a lot different than the traditional Maga rally. We'll get into that next to the campaign trail on Balance of Power. This is Bloomberg.
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Thirty on a quiet day in the nation's capital. Not at all on the campaign trail, certainly not last night in New York, as Donald Trump made his way to the Bronx and pretty fascinating to see a much more diverse crowd then tends to gather for a Trump rally, But the color of the hats was the same in deep blue New York. MAGA has its moment. Donald Trump even seems to think he could win the state of New York in this selection, though many wonder what world
in which that could happen. The fact of the matter is both of these candidates are making a concerted effort to win the support of black and Hispanic voters, and that probably would not be happening if we hadn't seen the deficit in recent polling that Joe Biden is showing. Let's assemble our panel for their take on all of it. Jenny shanz Know is with US Bloomberg Politics contributor and now Senior Democracy Fellow with the Center for the Study
of the Presidency in Congress. More Gillespie here as well, Republican strategist founder Blue Stack Strategies, spent many years working for the Speaker of the House, Speaker Bayiner. Great to have you both with us here. More I'll start with you. You know New York, you know the Republican Party. Where's Donald Trump looking here? What's the purpose of this exercise when no one seems to think he could win that blue state?
He sees and Republicancy a real opportunity to get the black vote. You know, I think it's something that I don't know, we talk enough about the problems people are having with what's currently going on, and you know, liberal more liberal run cities and states. You know, you saw the results from Oregon's primary this this week. Not great for progressives. You know, I think that the progressive policies
haven't benefited people. They're not feeling in their pockets, and so the reflection of that is looking for somebody else's support where they felt like maybe times were better. I know that feels kind of you know, hard to imagine, given that during Donald Trump's presidency we were in COVID times. But prior to COVID, you know, people felt like the economy was doing better. So, yes, they are. You could be frustrated by Donald Trump, you could be. You don't
have to like them to vote for them. And I think that we forget that as we talk about politics and talk about these choices. It's not binary to choose between the two as far as who you like better, It's about where do you personally feel you'll be doing better in four years from now.
Well, that's an important line, Genie. Don't have to like them to vote for them. What do you make of the crowd that showed up in New York? What does it say about New York and the canidate.
Yeah, there's nothing like a summer in the Bronx Joe, and that's where Donald Trump was yesterday. And I have to say, and I say this reluctantly, it was a very smart move. You know, he is doing what campaign should be doing. We've often criticized I have I shouldn't say you have, you have not. I have often criticized Donald Trump for not reaching out beyond his base. You know,
we traditionally say he doubles down on his base. Well, this is an example of a truly smart campaign strategy of reaching out and taking it to the base of your opponent and saying, don't take this base for granted, Joe Biden and Democrats, because I you know, the fact is he doesn't have to win New York. No, no Republican Hansince, Ronald Reagan. But what he can do is he can take it to Joe Biden, make Joe Biden spend money, make Joe Biden fight for those those voters.
And that is a brilliant strategy that Democrats should be doing the same with Donald Trump's base. That's what you do so very reluctantly, I say, for all the talk about you know things thirty forty years ago with Woolman Park and stuff, this was a very smart strategy on the Trump campaign's part.
Well, it's interesting more, I keep here in that only six or seven states are going to decide this whole election. So why would either candidate go to a place like New York or California where it seems predetermined.
It may seem predetermined, but I do think that in both New York and California you're starting to see some areas of those states where it's getting a little purple, and as an opportunity to capitalize on those who are disillusioned by you know, government right now. They're not happy with the choices they have. And we've long said that it's not up to us as voters, or maybe I've long said it, it's not up to us as voters to choose between the two, but it's up to those
two candidates to convince us to vote for them. And so, to Genie's point, Donald Trump going out and making his case to people who maybe aren't happy with how things are well, he can make a case that he'll make it better. You know, that's what canad is supposed to be doing. And coming to the Bronx and going directly to them. I think one of the people who' said there, you know, we have a president here, We're going to listen at least, so I think that, yeah, making that
effort really does make an impact. Whether you think you're gonna win that state or not, you're showing up.
Well, let's follow the money for a moment here, because one of the big headlines this week was Donald Trump and the RNC out raising Joe Biden and the DNC for the first time this cycle. And it's only one month, but they're hoping for a lot more, as Axios reports today that jd Vance Senator jd Vance, supposedly on the list of potential vice presidential picks for Trump and very close to Peter Thiel, is putting together a massive fundraiser
with heavy hitters from Silicon Valley. It'll take place in, of all places, San Francisco, on the sixth of June. G how much does Joe Biden need to worry about the mega donors turning away from him and towards Trump.
Yeah, it is a concern. And again talk about going to a blue area. You know, there they go again. More just mentioned California. This will be in San Francisco. I think jd Vance has gotten the memo that if you want to be on the short list for VP, it is all about well, first of all playing amid paying rather onorge to Donald Trump, and second of all raising money. So he doesn't want to let Doug Burghum, you know, win the game there. So he is doing
this and it's a smart strategy. They want to try to make what was the last month's numbers a trend. We don't know if we will see that at this point because we can't forget Donald Trump just became the presumptive nominee, so that was a benefit and a boon for the April numbers. But yeah, they're going out there and they're going to try to make the case. And you you know, you've talked a lot about Crypto on this show.
Joe.
Crypto has about eighty million to spend in this campaign as well at this well, but there's a lot of money there.
That's a huge part of the story. As we discussed with Congressman Frenshill earlier, Genie. Then you've got Big Oil, Mora and a fascinating story on the Bloomberg Here Donald Trump raised forty million dollars in one day cash events in Houston and Dallas, described by people familiar with the events, forty million dollars in oil money, remembering he was looking
for a billion. It was a story in the Washington Post that he asked for a billion dollars collectively from Big Oil to rescind all of the climate initiatives of the Biden administration. Maybe not a billion, but this is one of the highest single day hauls for a presidential candidate ever Mora and Big Oil has more money to spend, right.
Absolutely, And again the policies of the Biden administration, but progressives around the country has not been seen as successful. So you're seeing a big push in Texas for energy. It's a huge issue there and there's a lot of
money there. I mean, there's a lot of money to be gleaned from donors there and so it's maybe not a billion, but there's more to go, as you mentioned, and I think that's an opportunity to get in places where the policies or failed policies of the progressives are being reflected in communities like San Francisco, like in Austin, and in New York City. So it's definitely starting to
get to people. And again, you know, there is a lot of donors who have been sitting on the sidelines that maybe are now taking a more active role.
At the same time, though, we must acknowledge that the United States is cranking out more oil than ever. We are pumping more oil than any time in our history. Genie, does Joe Biden actually have to start saying that out loud?
He absolutely should, and I think he should also stand up and say, look, people across the Democratic and Republican Party realize that when Donald Trump rather made that promise, you know, give me a billion and I will push back on all the steps that Biden administration has made as it pertains to our environment that impacts our children and our grandchildren. You want to get support from young people. The environment is critically important to how so many of
them think because they are worried about the future. So I think the Biden team needs to put this in stark terms. Joe Biden understands you. To your point, we are pumping more oil. But we all have an interest in and deep concern about the impact of the environment. Donald Trump is interested in himself, and he's willing to trade all of that for a billion dollars for himself to pay off his lawyers. So that is something they
should be saying. They haven't said it yet, but who knows, they may once they hear your show.
Joe, Yeah, well I got knows. Today's by the way, the big gas price. The average today trip a national average going into Memorial Day weekend, three dollars sixty cents a gallon. When you look to New York, it's three sixty eight. Look to Illinois, where Democrats are going to have their convention this summer, four dollars, there's a four handle. And in California the aforementioned. I just I know it's not like the rest of the world, but five dollars
fourteen cents. Great panel, great conversation. Love spending time with Genie Shanzano and Morag Gillespie. We thank you both.
You're listening to the Bloomberg Balance of Power podcast.
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They worked until the wee hours in the House of Representatives of late night for lawmakers with the knockdown, drag out markup session on the Farmville. This is now the newest controversy in Washington. When I say farm Bill, I'm not only talking about farmers. I'm talking about food stamps. This is going to expire in September. Lawmakers are trying to get their arms around it right now, and the debate in the markup session went on for some time.
Congressman Jonathan Jackson speaking passionately about this in the process, the Democrat from Illinois First District, let's listen to.
Be sure, this bill compels us to move beyond the politics of Blaine so that we might embrace a more excellent way. In fact, I would go far so far as to saying that the farm Bill is one of the few manifestations of the social contract this government makes with the American people. The SNAP program, I would like to focus in on more singularly, is a moral achievement.
And he's now with us at the table. Congressman Jonathan Jackson, thank you for coming to see us today of Bloomberg. It's good to see you, great to see you. It's best after all that.
Yes, it's funny.
People say there's nothing left on Capitol Hill, but there's one big one and left it's called the Farm Bill. So what did food stamps get to be so controversial? I heard Republicans in that markup session talking about robbing Peter to pay.
Paul right, And it seems like in this one hundred and eighteenth Congress has a lot of unique things. But essentially we're talking about one point five trillion trillion with the TEA budget that's looking out over a five year reauthorization over a ten year horizon, and the one point five trillion dollars eighty percent of that fund are going towards the snap the supplemental nutritional assistance program. That's right, and I have to put the focus on supplemental nutrition
and assistance. The other side of that coin is dealing with malnutrition. There is rising malnutrition. If you did not have this part of the budget focused on the farming, you'd be talking about almost fifteen billion dollars in increasing malnutrition amongst American citizens. Forty two million Americans qualified for supplemental nutritional assistance. Roughly one hundred and eighty dollars a month would go to these persons two dollars per monk.
This is the eighty percent of the farm bill. So it goes to show you that there's food insecurity in America that we have to deal with.
Jony Ernst joined us. Just the other day. The senator from Iowa said there will be no new farm bill. We're going to have to extend the one we have and come up with a new product. Are you hearing talk like that as well?
I'm not, but that very well could be the case. I'm more optimistic. We have a great chairman and a great ranking member, Chairman Thompson, ranking member Scott. So I'm very confident, or feel highly confident, or shall I say very hopeful who we'll get through this.
Congressman. Tomorrow, we're going to mark four years since the death, the murder of George Floyd. This is going to be a moment for our country. You were at George Floyd's funeral, and there was a thought at that time that there was great change coming, and in some cases we saw it, particularly at the local level, in new laws and regulations for policing on the state level primarily, but there was something called the George Floyd Justice and Policing Act that
passed the House some time ago. It went nowhere from there, and Shila Jackson Lee reintroduced it this week. What's different now when it comes to that legislation? Could it pass again?
It seems like everything has changed. It seems to be a complete reversal, if you will, a retreatment and a retrenchment on corporate America's commitment to racial, social and justice equity. We've seen in the extension of our annual budget, of the budget that passed the DEI, the Diversity Equity and Inclusion Office on Capitol Hill was removed from out of the building. Now people are being sued after the overturn
of the affirmative action ruling. If you will that thirteen attorney attorney generals from each state sent letters to the fortune one hundred corporations saying, if you have a diversity equity inclusion program in place, that that is subject to be challenged and sued.
DEI become a swear word.
I don't know, I mean just as the most bizarre things. But then again, there are a lot of things that are nominally here that have happened. How do we have a president if you will on trial for prostitution if you will, And I don't know what hush money payments are, that's actually bribery. I mean, like a lot of things have happened. We used to say look up to the president. And if you're talking about looking up to what's happened
in food, how do we become mean towards women and children? Well, we should be talking about as a war on poverty, not a war on the poor. These are the most vulnerable people in our society that qualify for SNAP. People
don't want to have this supplemental nutritional assistance. So therefore, if you've got crop insurance, meaning that there's climate issues that are out of our control that are going through Iowa and Oklahoma and Kansas and devastating the land and the farmers, that's a subsidized program that the federal government has for farm insurance. I've come to look at SNAP as food insurance and family insurance that the government uses when people cannot do for themselves. I think the government
should help them. When the people can do for themselves, the government needs to step back right now, people are aching. There's been autoinflation, there's been housing inflation. There's education, if you will, the cost of education inflation. But this Farm
bill doesn't even address to deal with food inflation. And so to think that we could talk about taking thirty billion dollars off of the out of the budget to attack women and children, We're going to take a stand and we're not going to concede an inch.
You just set a lot. And I don't know anything about any prostitution charges in this case, but when we talk about well.
It's called pornography, but well, I'd like to call it what I think it.
Is understood where you're what you're referring to, Congressman, what can you do in the rest of this Congress? Then it sounds like your focus is on the farm bill, it's on food stamps as your answer to what you see as this cultural reversal, Am I.
Right, Yes, it's a war on the poor that people, the American people, have a housing issue that's becoming fifty percent of the average consumer's income. We're talking about the average car is now forty thousand dollars. That's going beyond people's reach. Student debt is now shaping an entire generation where they're having to make a decision.
Between While a lot of people are criticizing Joe Biden for higher prices, does he deserve it?
No, I think there was a supply chain issue. I think we're going through a structural readjustment that the American people deserve. If you will an FDR moment or Franklin Delmore Roosevelt moment by President Biden to come and talk to the American people, do the White House to the fireside chat. This is our money, it's going abroad for wars. Here's what our benefit is and the peace dividend that we can expect after we define the victory. Here's what
our money is going for defense. Here's where our money's going for allies abroad, and for this generation. Here's what's going to be your big deal. And then the student loan debt relief is good and great, but we've got to do more than that. What's the investment that enhances their life and that's what they're being hopeful and waiting for.
I hope you have a great Memorial Day week, and I want you to come back and talk to us about the campaign and whether the black vote will be there for Joe Biden. Would you do that for us, I'd be honest to do. Thank you, Congress Jonathan Jackson, Thank you, Sir Than On Bloomberg TV and Radio Live from Washington, This is Ballance of Power. Thanks for listening
to the Balance of Power podcast. Make sure to subscribe if you haven't already, at Apple, Spotify, or wherever you get your podcasts, and you can find us live every weekday from Washington, DC at noontime Eastern at Bloomberg dot com.