Surveillance: Biden's Foreign Policy With Hormats

joins us. He's a Tideman Advisor's Ambassador Hormats of course his public service to the nation for Republicans and four Democrats as well. Ambassador, Thank you so much for your perspective. Uh this morning, I want to go back to one of the chapters of your wonderful book, The Price of Liberty, The First Great Test? What is the first great test

for President Biden when he meets with Mr Putin? Well, he has to demonstrate that the United States is going to be much more resolute in resisting various cyber attacks that come from Russia or are perhaps sponsored by the Russian government. We're trying to sort out which is which, but certainly we have been plagued by lots of cyber problems coming from that country, either directly through the government

or indirectly by people on that territory. And these not only are disruptive in themselves, but pretend the prospect of things getting even worse or escalating, and that can be very disruptive to American companies and to the overall American economy. We're very cyber vulnerable because we're so connected. Can we be cyber offensive? I'm sure we have been. I'm also sure that when we do it, we don't say anything.

And the reason is that we don't want other countries, not just Russia and any other country understand how we do it, what we're doing, and what our technology is. That we certainly have the technology to be more offensive, and they know that. And I think that there is at least some sense that if they go too far, the United States can take action against them, and it could be very destructive because they have a weaker economy.

That the problem is that we're a very connected economy, and therefore a lot of things can happen here in one area, say electricity, which could shut water supplies down, or transit systems down, or energy systems down. So the

world's in a very precarious place. If we start getting into cyber attacks on one another, Ambassador, how much unity is there among the G seven, among the G thirty in combating cyber attacks together, in working together to make sure that networks are up to see speed and protected and the information is shared. Well, I would put it

this way, we have a long way to go. Um. There are different countries who were vulnerable into a ways as you've seen, some Central and European countries have already born the brunt of this, and there is really not, I think a collective doctrine of collaboration or of what

constitutes UH an attack that requires retaliation. The other problem is sourcing and energy at what they call attribution in this world, and you sometimes don't know where the cyber attack actually is coming from or who the perpetrator is,

so that makes it more difficult as well. But I think the vulnerabilities are becoming increasingly apparent and there is going to be and there's a NATO is probably the vehicle for doing it, um and for getting this together, but we don't know as much about how these are done, where they're coming from, and we certainly don't have a doctrine of specific retaliation for specific kinds of attacks, but we know things are getting worse and if want to

stop them, a we have to improve our defenses, which, as you've seen in certain instances, have not been all that good. In fact, they have been inadequate. And we also need them to know that if they don't deal with things that come from their government or from on their territory, we will have an opportunity and a will to take more action that can be very disruptive to them. Bob, there's a question the reason why I asked that this is not just about cyber but there's a broader point here.

Leaving the G seven heading to the NATO summit, there was a lot of disagreement about how hard of a line to take with China, how hard of a line to take with Russia. But my eyes really are on China. Given the predominance in the global economy, where are the biggest question marks there in terms of getting some sort

of unified strategy and how to interact with China. It's a great question and there is not a clear answer because the Europeans are concerned with certain things, certainly Chinese trade policy and electoral property protection uh UN level playing field that favors China. These of the American companies, but the European companies. But the problem is that companies in Europe and countries in Europe are very vulnerable. They have

become very dependent on the Chinese market. That's been cut back somewhat, but if they take very tough action against China. For instance, German cars, which do very well in China, are vulnerable and other German products. UH. The United States is in a somewhat different position. The Europeans are not so concerned about the strategic strength of China. UH these China see the South China see and many of the geo political and geo strategic issues in the Pacific that

we're concerned about don't so much trouble the Europeans. They're more concerned about the human rights issues. They're more concerned about trade issues. They don't want to all out trade war or all out confrontation with China. The United States has a lot of geostrategic and geopolitical issues. We have a navy there. The Europeans don't, so we have a wholly different set of issues. On the strategic side. Were similar to them, and we have similar concerns on the

economic side and the human rights side. So my guess is if there's to be some measure of unity, it's really in those areas, not in the geopolitical ones. Um do We're trying to get them to take a tougher line on China, but they are also concerned about their economic vulnerability, and they're much more reticent to do back. Do we risk, by the way, pushing China and Russia

closer together? Bob? How strong is that relationship? Well, we've already in part done that because it is I mean, the Europeans, the Russians, and the and the Chinese have had their issues over time. In fact, the first opening between the United States and China came because the Chinese and we perceived a Russian wreck to China along the Assouri River, and there were there were numerous Russian divisions on the Chinese border. So it hasn't been a particularly

comfortable relationship from time to time. But now they're beginning to realize that if they want to deal with the United States and resist some American pressures, they're going to probably have to work together. And that's what they're doing. And I do think there is that that has happened already and the risk is that it will happen even even further. The other thing is that other other countries in the middle our field, they don't want to be

caught like a lot of the Asians. Between the United States, I wanted to ask about I wanted to ask about that, Bob. The last time I sat on set with Tom Keane in person um there was an attempted coup de eta on air to one which he uh fought back and brushed off pretty quickly. How does Turkey fit into NATO right now? I mean, they do have the second largest army in the alliance, but they don't really see eye

to eye with the US. Well, they don't on numerous issues, Syria being one of them, Northern Iraq being another, of the Kurds being another im that's part of the Syria Northern Iraq issue. On the other hand, the Turks are extremely valuable. Their bases are very important to the United

States in in resisting Russian pressure. M the Turks have made are Towan and proven have both made efforts to try to improve relations, which they have done, but they still want and the assurance that the United States is going to be there if relations with the Russians deteriorate. I think that that question that you've asked is an important one. Are we going to be and is Natio going to be resolute with Putin moving more and more

troops up into Central Europe? Not across the border um necessarily although, but the troops have gone many troops have gone up close to the border. So there's a feeling among unease among the NATO countries. I think one of the tests in the NATO summit today is going to

be are we all committed to Article five? And what would we do if there were incursions in Article five countries, that is to say, NATO countries, and what will we do if their incursions into other countries that are not in NATO but whose interests are important in the United States. So the question of how do you convinced Putin to be restrained um is is going to be a critical one. And other ways of improving relations with Russia over the next several years. The Europeans would like that to see

that you see that happen. Also, we're out of time, we'll do it again, Robert Hormace, thank you so much, Ambassador Harmats of the time and advisors and I shoul't say enough about his books on the United States and our diplomacy. Let's dive into this right now on a Monday reset as you reset to get the fourth of July, we're watching the affairs of NATO to bring it up to speed there. Excuse me, I'm gasping over the length

of the carpet, uh, to talk of NATO. We had the photo shoot, we had the great meet and greet that looks sort of Hollywood is to say the least. And maybe now we go into individual discussions UH to be had in NATO bilaterals as they call him. The President meets with Mr Putin Mr Putin out on NBC UH in the last number of hours, making for some very tough language there on how he sets up his meeting with the President of the United States. Tough language down from Brian Nick of now Vine as we try

to get out of our way in the market. Brian, how do you frame and I mean New Vine is known as a buy house, but you do a lot of equity as well, how do you frame the mystery of Q three in Q four earnings? Yeah, we're actually just starting to write about this for a major outlook and we want to get out here is how how are things going versus how is the market expecting them

to go? So the first half was all about exceeding expectations, earnings beating expectations, economic data beating expectations, vaccinations and the vaccines themselves being more effective and more widespread and distributed than expected. I think now we're getting to this point where the markets and the economy overall are starting to just merely meet expectations. And that's why you've seen a bit, I think of a of a tapering back in the tenure.

I think you've seen a bit of a flattening out in terms of the pace of increases in the equity markets, and about the pace of sort of the narrowing and spreads and the credit markets. Everything has sort of come to a not quite a crawl, but maybe something you know, asymptotically approaching some equilibrium level until we get new news. How is the second half of the year going to go.

I think obviously what we're expecting is fewer surprises then we've gotten in the last couple of quarters from earning season, and that probably has you know, some some relation to what's going on in the bond markets as well. With the tenure having come often with the fat I think it's expected to remain quite dubbish on June. I think in the June meeting, I think if they say anything hawkeys, it will be a mistake. So, Brian, give us the

distinction between successful and beating expectations and disappointing expectations. Is it companies that have pricing power that can raise prices on consumers to meet some of the supply chain disruptions and the higher commodity prices, or is it simply being big tech and everyone eating an iPhone. Yeah, that's certainly

the pattern we're used to. Right when they were the world is sort of decelerating that sort of text moment to shine, and every time you've seen interest rates come back at the same time as earnings have started to decelerate back or maybe not beat as reliably, that's been a really good time to be in tech. And so we've been pretty neutral between the the ultracyclical deep value

and then the sort of the higher growth defensives. We're kind of spread out across the board there because again we're obviously, you know, leaning into the uncertainty of bit but also looking for a pretty um, you know, sharp and and noticeable deceleration in economic out in the US. Overseas, though, I think we're still waiting for peak economic growth. We're waiting for peak growth in Europe, the UK, later in the eur Asia and emerging markets as they get themselves vaccinated.

So there could be a bit of a rotation here as investors look for where are we still seeing the news being expectations? They could be looking outside the United States? Brian,

are you concerned it all here? I guess about the inability to I guess properly forecast some of the economic trends out there, We're starting to see a lot more sort of uh, I guess surprises, if you will, at least as far as what a certain economists and certain strategies on the street are expecting with regards something to the economic data points, not only here in the US, but really overseas as well. Do you think that that could end up creating a little bit more volatility as

we go forward. I think certainly outside the US we're still seeing most of the data coming in better than expected. I think if you've got an economic model that's worked for the last seven recessions. It probably didn't work very well for this one because more like a light switch getting turned off and turned back on. So most of the data, especially with all the stimulus, with the back and nations being is completely you know, unique variable to

this recession. I think that has caused a lot of the economy economic forecasting to be you know, too low. And I think we're starting to see that overseas more as well. In the US, we've actually seen the surprise indexes that we track UM coming back down to close to neutral UM. So it's this is the housing market is, you know, showing signs of maybe just cooling off just

a bit. Consumer is not gonna be as hot without the stimulus moving forward, it should be easier to forecast these things once we get all these kind of strange and unique variables out of the way. Brian, the calculus off of pre pandemic is standard and pours five undered up thirty sort of a blended bond event up three percent. You made the coupon and a tenC weens bit of total return as well. Are people worn out with fixed income? And I say this with immense respect with what Nouvine

invented across America in the packaging of unit trust. Are

we worn out from bond returns? Well, I think what we're telling clients is that, you know, you should be diversifying into higher yielding or just non correlated parts of the fixed income market, because whether or not interest rates move up from here, it's gonna be tough to make that three and a half percent again over the next year with a traditional bond portfolio, given how low fields have gotten and if they move, if they're moving higher, it's gonna be even tougher to do that, as we

expect they will over the next year, two years, three years, UM. So what we're looking to, you know, set people up with instead is, you know, things like the high yield part of municipal bond market, emerging market credit where we don't think there's value, and anything that's sort of less correlated to rising rates or less susceptible to rising rates.

So anything like in the loan area, senior loans, floating rate securities where you could be building in a little bit more protection against that that rises and rates that ends up knocking a lot of things off the board. Brian Nick, thank you so much with Levine this morning, their chief investor strategist. Right now on American politics X

we go granular with Gregory Vellier. He has a tough life to the south of Switzerland, up in the Alps, lost with some Saint Bernard somewhere on his way to Milan. He is leading the way to American tourism in Europe. Greg, very quickly, here should Americans travel to Europe? You're leading the way. If you had if you've had your shots, if you have been tested recently, yes, Okay, we'll leave it there, Greg, Let's go. There's too much going on.

I want to go to a great NPR thing I heard on Tennessee, which is a distance between Memphis and Nashville, where the Democrats of Memphis, the Democrats of Nashville, and the fifth and ninth districts get jerrymandered out in this cost the Democrats the House. How many of those battles are there out there now? To give a speaker Pelosi some serious angst. If forced to make a wager today, Tom, I think the House falls to the Republicans. In history

would indicate it. Three district thing would indicate it. Some important Democrats have announced their resignation. I think the Republicans are favored. The Republicans are favored. What kind of Republican House would it be? Would it be fragile and of gridlock? It wouldn't be fragile. I think that McCarthy is going to have his hands full with people who are not don't owe him anything, but I think you'd get gridlock to Tom in the last two years of Biden's first term. Yeah, Lisa,

this is really important. The first real conversation we've had about a majority GOP in the House. Yeah. The idea here of what happens if the Democrats can't go it alone and how much urgency is it behind is there behind them to get something done before mid terms? Greg, what is your sense of how likely it is that we see some sort of deal, whether bipartisan or partisan,

by next year. Given all of the hurdles and the divisions within the Democratic Party, I think only one of the three, Lisa, you'll get something on infrastructure, It's sure as heck isn't going to be two point to five trillion. It will be much much less. The other two are in trouble. The two trillion for social programs is on life support. And then finally the third one, a big

tax hyde I think is also on life support. There might be a little on the very wealthy and big corporations, but grandiose tax hype that Biden wants, I think is in real trouble. And meantime, there does seem to see some unity when it comes to Republicans and Democrats on

the international strategy, particularly with respect to China. And I'm wondering whether the President Biden's tour internationally this past couple of weeks really gives lights how far apart the US has gotten from European allies when it comes to what exactly they should do with respect to China. I think Biden sort of got what he wanted from our allies on China. I think we are demanding more transparency on the virus, we are demanding that they treat their dissonance better.

We're demanding that they stopped hacking into our companies. So I think on a lot of these key issues, there's not a lot of space between US and European allies were all united in opposition to China. Right now, do you think those greg that some of those allies have the same cushion, the same wiggle room. I guess to push back against China in the way that maybe the

US has good point. I think the US is more adamant the Western Europeans have other issues, including Putin, of course, but I do think that again, Biden got into communicate what he wanted. He didn't get everything. We still can't decide what we're gonna do with Cole. He and Trudeau did not agree on opening up the border with Canada. But I'd say the first part of this trip has been a great public relations success. I think Biden's numbers,

his job approval numbers are headed higher. Do you oh so, do you think, though I guess some of the international gains that he maybe making the international stage, that that actually translates to the real people on the ground here in the US with regards to his popularity and the likelihood that they may vote for him or Leasa's party. Again, Oh fearless forecast. I think within a week or two, Biden's numbers will be a little over six positive. That

gives him political capital. He's gonna need it to get much done on infrastructure. I think we're several weeks away from ironing out any kind of deal on infrastructure, so he needs that high approval number to help his cause. Greg. One final question here, we've got to get back to the markets and what we're seeing at NATO is well. In this political Maelstrom, we seem to be back to normalcy. Can you say that that Mr Biden has dragged us back to a diplomatic and domestic normalcy or is the

jury still out? It's a huge point, Tom, and I think the answer is yes. You know, whether it was Macrone or Merkel, they all pretty much agree the US is back. There was a good will, good spirit between all the leaders. Obviously the Putent meeting isn't going to go great, but I think with our allies that a sense that after these four horrible years, things are are returning to normal. Very good, Gregg, thank you so much, greatly,

greatly appreciated. This morning. Mr val joining us from the Alps of Switzerland on his way to Italy, which is maybe the best news we've said in eighteen months. Uh, let's get right to Michael Darta, MKM partners here to set up the economic week and he joins us from an island somewhere vicinity south of Cape Cod. Michael Darta, Martha's vineyard. You're living it out there. Wages, lack of labor, lack of housing. It's a real time microcosm of what

we've got worldwide. Are we gonna see wages rise and stay elevated? Well, Tom, we are seeing them rise, and certainly out here on the vineyard you can see these supply side disturbances that have been holding back job growth over the last few months. We're way out in the westerly sort of a remote part of the island. They're only a couple options in terms of restaurants where we are,

and none of them are open for indoor dining. And it's not because of COVID, it's because they cannot find employees staff, and so it's essentially a takeout situation where you can sit down there with no staffy. Michael, get out the grill, play the Gorilla album from James Taylor and move forward. Okay, let's look at the national situation now, Michael Darda, do you believe in a sustain g d P? I mean, looking at the top level and linking a nominal GDP to where we are. Do we misjudge the

sustainability of this economy to Boom? I think that's exactly what's happening. Tom We are in a boom. There are some supply side dislocations that are a bit confusing, but I think grow this going to be quite strong, well above potential next year. And that gets us to this question about inflation and whether it's temporary or potentially more permanent. Some of these price price spikes are going to be temporary. You're not going to see used car prices going up

seven or eight percent every single month. But there are other prices that are stickier, that are slower moving, that haven't even gotten going yet, that we could see start to move next year if we stay in this really

robust nominal GDP environment. Milton Friedman posited the relationship that you know, monetary policy eases first, so money gets going within a few quarters, you see output move, and then in terms of the lag on inflation, inflation is backward looking and slow moving most of the time, and that could be a few years. And we're already seeing inflation from these supply side shocks. But the demand side element, I think is going to be a bit more persistent

than widely expected. Lisa, that is the first time and the three of the people's Republic of Martha's Vineyard. That you've heard the name Milton Friedman mentioned on the Grand Island never happened before. All right, thank you for the Bloomberg exclusive, Mike Darna. We appreciate the the mention of Milton Friedman on Martha's Vineyard. Going forward, how do we know though, this idea of sticky inflation? When will we know?

Given the fact that people have pointed to wages and we see wages going up, but people even dismiss that as transitory. Yeah, no doubt about it. Well, you know, we know these flexible prices are rocketing and those are going to be the first to respond, but they will respond both to supply side and demand side shocks. The stickier prices um within the core tend to be more

slower moving. And you have a lot of monetary policy officials now that are in the temporary and transitory camp looking at median trimmed mean prices for these different indexes, whether it's a median prices for the CPI or the trimmed mean for the PC deflator. So we're getting a

bit into the weeds. But these are slower moving up price indices that you know, we'll tend to respond over time, and so those areas I think next year, if they start to get moving along with higher inflation expectations, then that that's that's going to probably get the Feds attention in a way that some of these price increases this year have not. Well, let's just zoom out a little bit. The balance of risks right now, is it too much higher yields or frankly to lower yields and poorer performance

and equity markets. Should the reality of slower growth actually set in after this inflationary pump, Yeah, I think the risk is to higher yields From where we are right now. Our forecast for year end is two percent and the tenure treasury so recently, you know, we ran up to the one seventies in late March and we've pulled back. That pullback corresponded perfectly to a few months disappointing job gains that we were seeing pressure on wages, pressure on

ours work. So these supply side disturbances holding back job growth. So if we see job growth accelerating towards those seven figure thresholds, and then I think you're gonna see bond yields moving moving back up towards you know, towards the highs of the year, and then potentially even higher. That's our view. You know, obviously the market will decide, and the market has spent going the other way on yields for the last couple of months here. But I think, um,

you know, that's really what turned the tide. I think you had a lot of barish sentiment in the bond market and it just took a couple of weeker than expected readings on jobs to to trigger a rally. And I do think that will reverse over time if job growth accelerates, as some of these supply side pressures ease up, and we can go through what those are. But that's our view. Yeah, there's certainly a lack of consensus right now with the way things are being priced. Maybe you

can go through some of those additional pressures here. Particularly, it's the backdrop of whether there is I guess distortions in this market by FED policy and whether the data themselves maybe leads to further distortion, no doubt about it.

So on the job growth angle, we have some issues from extended unemployment benefits and so you know that's increased the reservation wage, the so called wage that would call someone um, you know, off the couch or you know, waiting at home for a better opportunity to get back involved in the labor market. There's also been some hesitation on the part of the public in terms of risks

to you know, interfacing with the public. I think those will be easing back now as a bigger percentage of the population is vaccinated month over month over month, and we've had a problem with schools being closed, in parents dealing with issues with respect to childcare. So all of those things should be improving over the course of the months. Head. I mean that we already have half the governor scaling back the jobless benefits and then um, you know, these

will start to roll off completely in the fall. Schools are reopening, and we're doing pretty well on the vaccinations, and so I think a lot of these issues are going to receive that you know, that have been holding back job growth, and we are accelerating now on job gains, and so we're getting closer to the FED starting to talk about think about talking about and then start talking about talking about the taper. Yeah, that's definitely gonna be a lot of talking. But so all right, then that's

the circle back then, Mike two. I guess then the wage issue here and the idea here that some of the issues that we're having right now in the labor market are causing an increase in wages. I guess that's a good thing, depending on what side of the fence you sit, But there's some concern here that that is definitely I guess the sticky part of the inflation debate right now, and that even if we do get some sort of right sizing in the labor market, those wage

gains are still going to be there. Yeah. I think they're still going to be there, just because this is a booming nominal demand backdrop, and so we had a huge and sudden collapse in the economy last spring. Nominal GDP since then has been growing at an eighteen point five percent annualized rate. So all nominal magnitudes should be, you know, should be moving up pretty rapidly, and wages

are certainly a part of that. There a sticky part of it, um But yeah, I think these wage increases are going to stick because the labor market is going to be tightening month after month, and you've got record job openings, of record quit quits rate, a lot of these leading indicators like first time jobless claims collapsing, you know, very bullish for a tightening labor market and suggesting the

face probably a bit behind the curve here, Michael. The money question here, and all the time that you and I have gone back and forth on this is does the geometry we learned still worked? And if we go to you know, Edwinninski and others studying the I S L M function of Hicks from years ago, does that traditional geometry work now? Or do you just anticipate at some point out there we'll get back to what's in

Michael Spencer's textbooks. Now. I think that, you know, I think the basic models can can help us think about shocks. You know, we wrote about that last year. But the essence of where we started with this Milton Friedman idea that you know, monetary policy operates with lags, and then you first see an easy show up and output, and then you know inflation follows because it's stickier, intends to

be a lagging indicator. I think we already see that playing out, and that would suggest more permanence to some of what we're seeing, rather than this very temporary transitory, you know, base effect type nature, which is what the official company line, if you will, is right now. And of course, Michael, what is so important is that Martha's vinyard. There is only one one metric for summer pricing, and that's a price of pro pro pane for the grill. Folks have no idea what it costs out on these

islands to get pro pane. For those of you on radio and action photograph of Michael Darta, this grill Lisa went to the moon. Is that that's not what I'm really socks and flip pops? Is that a thing, Michael I liked? You guys get that photo. That is Uh, it's coming from inside the house. Michael Darta will be out for dinner tonight. Thank you so much. Mr Darta from m Camp Partners holding court out on Martha's vineyard right now. And we have been looking at the Mayor's

race in New York. For those of you worldwide, Uh it is there's like three Republicans on the island of Manhattan. Scott Stringer knows all of those Republicans. But this is a Democratic primary, and it is a primary that has been contentious. Scott Stringer, Thank you so how much for joining us obviously obviously his leadership in Manhattan politics and of course his Public Services controller as well. Scott, I want to get the obligatory questions out of the way.

You have been accused of sexual harassment. It has turned turned your candidacy upside down. What do you do now to move forward? Should you be dropping out and giving a powerful endorsement to a progressive a liberal or do you do you move on to the primary? Well, look, these allegations literally as far back as thirty years ago, and uh, it is unfortunate. It has had a big

impact on the campaign. But look, you know this is not an easy venture when you run from there of New York City and you know people are gonna come at you. But I have full faith in the voters of this city who know my thirty year record, they know the kind of person I am. Just the other day, three women progressive signed a letter and support of my candidacy. So look, it's a challenge. But when people look at the inconsistencies, when they file the facts, uh, they have

been the same person. They've always knew me. In terms of endorsing another candidate, I'm in the race. And while my supporters can rank me first, they have an opportunity under rank troyes voting to rank another candidate second. But I have no plans to make an endorsement. But you know that could change in the coming days. Who I would like to see as second choices candidate. It's something I was thinking about over the weekend, and uh, we'll see how the next few days play. But right now

I'm running to win. The support has been really strong, and I just want to say to you, I don't think there are three Republicans in Manhattan. I think there are two. Okay, well there's two, and we'll we'll do Ken Prue. It was the third run until he until he passed away. Scott Stringer, look at the moment, and my I just still down this campaign and folks, for those of you nationwide, it has been a vigorous It is about democracy in New York City, even if it's

one party. In Scott Stringer, it's devolved down to public safety and to the police. I want you to stay your approach to this divisive nature of the police in this nation and particularly the NYPD. Well, look, there's no question that people are concerned about public safety, and they should be. I'm a kid who grew up in this city in the seventies when they were two thousand murders

a year. My mother used to tell my brother and I, when you get on the A train in Washington Heights, sit in the conductor car because that was the only safe car. So I have lived my life through that lens. Obviously, we've come a long way in terms of safety, and I think the next mayor has to make sure the police are finding the people who are doing the shootings and tackle the violence in the streets. There's no question

about that. But also we have to think about a police force that is less about over policing in black and brown communities, more investment in kids to keep them away from the criminal justice system. We're seeing around the country that when you were spawn with mental health professionals to mental health challenges on the street, the results are better. So the next mayor is going to have to be able to keep the street safe and also make sure that we have a policing system that is fair and just.

I think I'm qualified to do both given my thirty years of experience and government, and I'm looking forward to that challenge alright, so certainly a divisive issue Scott, but probably more divisive and at least more disparity with regards to the policy positions that I've seen amongst the Democratic candidates.

Here is their position here on education and specifically how you make these investments, if you make investments at all in our public school systems, in our charter school systems for some, but more importantly overall, and making sure that a lot of the kids out there are getting a fair education. That is going to be one of the number one issues facing the city. And become a public school parent. I got married late in life. I have a nine year old and a girl. They're in public school. Look,

I I'm a failed remote learning teacher. They really struggled. It was no joke. Our wonderful children really got hit hard. This to Blasia. Administration really didn't prepare for the endemic, and I worry that they haven't prepared post pandemic. But look, I believe that we need a mayor who's going to direct the issues facing kids, mental health challenges, more tutoring, direct aid for the kids. And my proposal quite simply

is to put two teachers in every classroom. K to five, because that's what the charter schools do in the private schools. It's time to give public kids, public public school students the opportunities to get a first rate education. I'm proud apported by the teachers and the principles and secunity professors, and I'm the education candidate from theyor Okay, but where do you get the resources to do that? The monetary resources? And then it almost dovetails with Tom's question before here

about the approach to the NYPD. There are a lot of people that want to see resources may be taken out of that column and put potentially in the education column here. How do you balance those competing interests. Well, the nice thing about electing the city controller mayor is actually know the finances of the city. I know where the money has been wasted over the last eight years. There's no proposal I've put forth that I can't pay for.

We can put two teachers in every class, some three million dollars a year because we're getting record foundation need for Albany. We can equalize after school programs for all kids, regardless of zip code. That's two hundred million dollars. We can actually begin to think about all of these programs because budgets are about priorities. So if you don't waste money and then money we're receiving from Albany stimulus money, we could create real programs that can realize systemic change

in the system. But I put forth, but I agree with you. You've got to know where the money is. And no can running from mayor has any understanding about the money because they had the opportunity audit and investigate the de Blasio City agencies. Is I have, Scott, not enough time here, but I've got to get this in. Its too important. Your heritage of this island, of Manhattan, of New York City goes back to Abraham Beam, your support of Murio Koma long ago and far away, and

particularly your family affiliation to the wonderful Bella Absuck. Folks, whether you agreed or disagreed with her, everybody loved and admired Bella abb Sug for her energy. What would Bella abb Sug say about the mess you're in right now? I'll keep fighting, you know, listen, you don't you don't begrudge the challenges you face. To be mayor of New York City is not a straight line. Look I beat Elliott's bit. So when everyone said I couldn't, I'd beat

Evil Mossquit Faber present when everyone said I couldn't. I've never been in a race where I was ahead or I didn't have turbulence. I'm a city kid. I get knocked down, I get backed up. That was what Absug did in her career, and that's what so many people before me did. My own mom was a single parent running for the city council when I was a little boy, and I watched her get knocked around too, and she

kept fighting right back and alive. Today they'd be like, keep your head down, keep moving, and get to the polls. That's what they would be telling me. Disgusting or thank you so so much for joining us. This is the Bloomberg Surveillance Podcast. Thanks for listening. Join us live weekdays from seven to ten am Eastern on Bloomberg Radio and on Bloomberg Television each day from six to nine am for insight from the best in economics, finance, investment, and

international relations. And subscribe to the Surveillance podcast on Apple podcast, SoundCloud, Bloomberg dot com, and of course on the terminal. I'm Tom Keene and this is Bloomberg,