Bessent: Iran's currency in FREE-FALL under economic pressure

[00:00:00] Speaker 1: WELL, WELCOME BACK, GOOD TUESDAY MORNING, EVERYBODY. THANKS SO MUCH FOR JOINING US THIS MORNING. I'M MARIA BARCHEROMO, AND IT IS TUESDAY, JULY 21ST. IT IS JUST BEFORE 8:00 A.M. ON THE BUTTON ON THE EAST COAST. WE'VE GOT BREAKING NEWS RIGHT NOW. THE TREASURY DEPARTMENT ANNOUNCING THE SUCCESSFUL IMPLEMENTATION OF A NEW GOVERNMENT-WIDE PAYMENT VERIFICATION PROCESS. THE PROCESS DESIGNED TO HELP STOP FEDERAL PAYMENTS BEING SENT TO DECEASED INDIVIDUALS. THE DEPARTMENT IDENTIFYING NEARLY 5,000 PAYMENTS WORTH APPROXIMATELY $99 MILLION, ALL LINKED TO DEAD PEOPLE AND DECEASED PAYEES. JOINING ME NOW IS THE TREASURY SECRETARY HIMSELF, U.S. TREASURY SECRETARY SCOTT BESSENT. SECRETARY, THANKS SO MUCH FOR SPENDING THE TIME. CAN YOU WALK US THROUGH THE TREASURY IMPLEMENTING THIS NEW SAFEGUARD TO STOP PAYMENTS TO DECEASED PEOPLE? HOW SIGNIFICANT AN ISSUE HAS [00:00:52] Speaker 2: THIS BEEN? WELL, MARIA, GOOD MORNING AND TREASURY ISSUED. WHAT DO YOU THINK? THIS IS PART OF WHAT PRESIDENT TRUMP CALLS HIS COMMON SENSE AGENDA. IT'S COMMON SENSE. AND HE ISSUED -- PRESIDENT TRUMP ISSUED AN EXECUTIVE ORDER FOR US TO BE ABLE TO GO TO THE DO NOT PAY TO HAVE IT INTERACT WITH THE TREASURY PAYMENT SYSTEMS, AND AS A RESULT, SO FAR WE'VE SAVED ABOUT $100 MILLION PAYMENTS THAT DIDN'T GO TO DECEASED PEOPLE AND THAT WOULD HAVE GONE OUT. WE THINK THAT THERE'S UP TO 350 MILLION THAT WE CAN STOP FOR THE END OF THIS YEAR. AND THAT GOES ALONG WITH THE VICE PRESIDENT'S TASK FORCE ON ELIMINATING WAIST FRAUD AND ABUSE IN THE GOVERNMENT. THE GAO ESTIMATES THAT IT MIGHT BE -- THIS NUMBER MIGHT BE UP TO $500 BILLION, WHICH IS ABOUT 1.66% OF GDP. SO THAT COULD GO A LONG WAY TOWARDS PAYING DOWN THE DEBT, PROVIDING MORE SERVICES, AND THIS IS JUST THE START, MARIA. [00:01:57] Speaker 1: THAT IS INCREDIBLE. I MEAN, FOR ALL OF THE FIGHTING THAT WE SEE BACK AND FORTH BETWEEN THE REPUBLICANS AND THE DEMOCRATS ABOUT GOVERNING AND ABOUT ALLOCATING CAPITAL AND SPENDING MONEY ON PROJECTS TO THINK THAT THERE'S ALL THESE MILLIONS OF DOLLARS OR TENS OF MILLIONS OF DOLLARS THAT HAVE ACTUALLY BEEN, YOU KNOW, ON THE CUTTING ROOM FLOOR BECAUSE OF FRAUD AND WASTE THAT PEOPLE JUST WEREN'T PAYING ATTENTION TO. I MEAN, IS THAT ALL IT IS THAT PEOPLE DIDN'T LOOK AND INVESTIGATE THIS THE WAY PRESIDENT TRUMP HAS DIRECTED HIS AGENCIES TO? [00:02:30] Speaker 2: I MEAN, IS THAT PEOPLE ARE GOING TO BE ABLE TO DO? I MEAN, IS THAT PEOPLE ARE GOING TO DO? I MEAN, IS THAT PEOPLE ARE GOING TO DO? I MEAN, IS THAT PEOPLE ARE GOING TO DO? I MEAN, IS THAT PEOPLE ARE GOING TO DO? I MEAN, IS THAT PEOPLE ARE GOING TO DO? I MEAN, IS THAT PEOPLE ARE GOING TO DO? I MEAN, IS THAT PEOPLE ARE GOING TO DO? I MEAN, IS THAT PEOPLE ARE GOING TO DO? I MEAN, IS THAT PEOPLE ARE GOING TO DO? I MEAN, IS THAT PEOPLE ARE GOING TO DO? I MEAN, IS THAT PEOPLE ARE GOING OUT TRYING TO RETRIEVE IT IS VERY, VERY DIFFICULT. SO, STOPPING IT AT THE SOURCE HERE IS OUR GOAL. AND, MARIA, THERE'S HUNDREDS OF BILLIONS OF DOLLARS HERE, AND THIS IS THE START. WE ARE OFF TO A GREAT START. YOU ARE SEEING THE VICE PRESIDENT'S TASK FORCE, THE UNEARTH THINGS, YOU KNOW, ALL ACROSS THE HEALTH CARE SYSTEM, TOO. [00:03:07] Speaker 1: YEAH, FOR SURE, ALL RIGHT, WE'VE GOT A SPOTLIGHT ON IT AND WE'RE COVERING IT BECAUSE THIS IS INCREDIBLY IMPORTANT, PARTICULARLY AS MANY IN CONGRESS COMPLAIN ABOUT DEBT AND DEFICITS, HERE YOU HAVE REAL EFFORTS TO ACTUALLY SAVE AND ELIMINATE FRAUD AND WASTE AND ABUSE, BUT I WANT TO GET YOUR TAKE ON THE WAR AND THE ECONOMIC PRESSURE THAT YOU HAVE BEEN PUTTING ON IRAN AT TREASURY, YOU'VE SAID THAT THE TREASURY IS FIGHTING AN ECONOMIC WAR AGAINST IRAN, AND YOU'VE DONE SANCTIONS AGAINST IRAN. I WANT TO GET YOUR TAKE ON THAT, YOU PUT MAJOR SANCTIONS ON IRAN'S SHIPPING EMPIRE EARLIER THIS MONTH, SANCTIONING A NETWORK TIED TO MOHAMMED HOSSEIN SHAMKAMI TARGETING MORE THAN 200 VESSELS, IN ADDITION TO THE NAVY BLOCKADE AND THE PRESIDENT'S TOUGH STANCE AND RETALIATION AGAINST IRAN, CAN YOU TELL US WHAT'S LEFT IN TERMS OF YOUR PURVIEW, SANCTIONS AND THE ECONOMIC WARFARE THAT CAN STILL HAPPEN AGAINST IRAN? [00:04:01] Speaker 2: YEAH, SO WE HAD THE VERY SUCCESSFUL, THE EPIC FURY, WHICH IS SIX WEEKS CAMPAIGN, ELIMINATED THE IRANIAN NAVY, THE AIR FORCE, A LARGE PART OF THEIR MISSILE AND DRONE STOCKPILLE. DESTROYED MOST IF NOT ALL OF THEIR CAPABILITY TO REBUILD AND THEN WE MOVED ON TO WHAT WE CALL ECONOMIC FURY AND THAT'S A ONE-TWO PUNCH, IT'S THE BLOCKADE AND THEN WHAT WE'RE DOING AT THEIR MISSILE AND THEN WE'RE DOING AT THEIR MISSILE AND WE'RE TRACKING THESE ACCOUNTS ALL OVER THE WORLD. WE FROZE A CRYPTO WALLET LEADED TO THE IRGC THE OTHER DAY, ABOUT $130 MILLION. WE HAVE FOUND THE MONEY MAN FOR THE IATOLA AND WE'RE TRACKING THE IATOLA'S PROPERTIES AROUND THE WORLD. WE HOPE TO SOON BE ABLE TO PRINT HIS $100 MILLION PLUS PROPERTIES AND SHOW THE ADDRESSES. AND WE'RE PRESERVING THIS MONEY FOR THE AMERICAN PEOPLE, BUT MOST OF ALL, WE'RE CONSTRICTING THE REGIME. THEIR CURRENCY HAS COLLAPSED. IT IS AT AN ALL-TIME LOW VERSUS THE DOLLAR. IT'S IN FREEFALL. AND WE THINK THE INFLATION RATE IS UPWARDS OF 180% IN IRAN. THE GOVERNMENT IS CAUSING THE PEOPLE TO SUFFER AND WE'RE GOING TO KEEP PRESSING BUT WE'RE ALSO GOING TO MARSHAL THE RESOURCES AND SAVE THE RESOURCES THAT WE RECOVER FOR THE IRANIAN PEOPLE WHEN WE GET ON THE OTHER SIDE OF THIS. [00:05:31] Speaker 1: SO HOW MUCH OF IRAN'S ABILITY TO FINANCE THE IRGC WOULD YOU SAY HAS BEEN DISRUPTED AND ARE YOU PREPARED TO PUT SANCTIONS ON, FOR EXAMPLE, CHINESE BANKS? IF IN FACT YOU FIND OUT THAT CHINESE BANKS OR CHINESE COMPANIES ARE CONTINUING TO PURCHASE IRANIAN OIL AND TRYING TO SUPPORT THE IRGC? [00:05:52] Speaker 2: WELL, WE HAVE SANCTIONED CHINESE WHAT ARE CALLED THE SO-CALLED TEAPOT REFINERIES WHICH ARE THE PRIVATE REFINERIES AND WE'VE SEEN A SUBSTANTIAL DECREASE IN THEIR PURCHASES OF IRANIAN OIL. WELL, THE CHINESE IN GENERAL BECAUSE OF THE PRICES AND BECAUSE THEY HAVE A VERY LARGE STRATEGIC PATROLLING RESERVE HAVE DROPPED THEIR PURCHASES OF CRUDE OVER THE PAST FEW MONTHS BY ABOUT 40% AND THAT'S DIRECTLY PRESSURING THE IRANIAN REGIME. WE PUT THE BLOCKADE BACK AND I TELL YOU THE BLOCKADE IS POWERFUL FINANCIALLY BUT I THINK IT'S ALSO VERY POWERFUL PSYCHOLOGICALLY. YOU KNOW, IT CUTS IRAN OFF FROM THE REST OF THE WORLD AND WE ALSO HAVE THE ABILITY TO INTERDICT THE IRANIAN DARK FLEET ONCE THEY ARE OUT IN THE PACIFIC. YEAH, THAT'S INCREDIBLE. [00:06:42] Speaker 1: WE'RE GOING TO BE WATCHING ALL OF THAT. SECRETARY, I WANT TO MOVE ON TO AI BECAUSE OF COURSE WE ARE PRODUCING AND PROGRAMMING A SPECIAL WEEK THIS WEEK. TALKING TO THE MOST IMPORTANT COMPANIES AND INDIVIDUALS IN THIS AI RACE AND THIS AMAZING BUILDOUT. THE LINDSAY GROUP RECENTLY REPORTED THAT THE FEDERAL RESERVE FOUND THAT THE CAPEX OF AMAZON, GOOGLE, META, MICROSOFT AND ORACLE REACHED 412 BILLION IN 2025 OR 1.3% OF GDP. SOME ESTIMATES FOR 26 ARE NORTH OF $700 BILLION. WE JUST HEARD ONE ESTIMATE AT ONE AND A QUARTER TRILLION IN TERMS OF SPENDING ON THIS BUILDOUT. CAN YOU ASSESS FOR US WHAT THE IMPACT OF THE AI BUILDOUT AND THIS INFRASTRUCTURE THAT IS HAPPENING [00:07:27] Speaker ?: MASSIVELY? [00:07:27] Speaker 1: WHAT'S THE IMPACT ON THE ECONOMY? WELL, MARIA, THIS IS A GENERATIONAL TECHNOLOGICAL BOOST. [00:07:32] Speaker 2: PRESIDENT TRUMP CAME IN AND BECAME ONE OF THE GREAT SUPPORTERS OF THIS VERY IMPORTANT TECHNOLOGY. AND IT STARTS WITH WE HAVE TO HAVE THE ENERGY FOR AI. PRESIDENT TRUMP IS ALLOWING THE AI COMPANIES AND THE DATA CENTERS TO BUILD THEIR OWN POWER GENERATION. SO WE'RE SEEING IT THERE. WE'RE SEEING IT UP THE SUPPLY CHAIN. AND THIS IS KIND OF A ONCE IN A GENERATION OR BUILDOUT. AND THIS IS KIND OF A ONCE IN A GENERATION OR BUILDOUT. AND IT'S VERY POWERFUL. AND ON THE OTHER SIDE OF THIS WE'RE GOING TO SEE BIG PRODUCTIVITY GROWTH. AND REALLY THAT'S HOW YOU INCREASE NATIONAL WEALTH IS THROUGH PRODUCTIVITY GROWTH. AND LOOK, THE U.S. IS THE HOME FOR THIS. AND ONE OF THE THINGS I WANTED TO SAY TODAY IS WE'VE SEEN A LOT OF TALK ABOUT, YOU KNOW, OPEN SOURCE MODELS COMING AND THREATENING THE LARGE LANGUAGE MODELS IN THE U.S. WHAT I WILL TELL YOU IS THIS ADMINISTRATION SUPPORTS OPEN SOURCE MODELS. BUT WHAT WE DO NOT SUPPORT IS IP THEFT. AND IF WE SEE ESPECIALLY THAT OVERSEAS MODELS ARE STEALING FROM OUR GREAT COMPANIES, WE HAVE THE ABILITY TO SANCTION THEM BECAUSE OF THIS THEFT. [00:09:02] Speaker 1: THAT IS WHAT I WANT TO DO. THAT IS REALLY IMPORTANT POINT. THAT IS EXACTLY WHERE I WAS GOING NEXT. THE WALL STREET JOURNAL THIS MORNING WRITES THIS. TOP AMERICAN AI EXECUTIVES ARE SOUNDING THE ALARM ON CHINESE MODELS. SILICON VALLEY IN WASHINGTON DEBATING A MULTI-BILLION-DOLLAR QUESTION. SHOULD AMERICAN COMPANIES BE ABLE TO USE CHINESE ARTIFICIAL INTELLIGENCE MODELS? AND WHAT DOES THAT MEAN FOR IP THEFT, KNOWING THAT WE'VE BEEN WATCHING THE CHINESE STEAL INTELLECTUAL PROPERTY FROM AMERICA FROM THE WEST FOR DECADES? [00:09:32] Speaker 2: WE'RE FINDING WATERMARKS OF OUR U.S. LARGE LANGUAGE MODELS ON MANY OF THE CHINESE MODELS AND THAT'S UNACCEPTABLE, MARIA. SO WE'RE GOING TO BE LOOKING AT THAT IN THE COMING DAYS OR WEEKS. BUT AGAIN, THE GOVERNMENT, U.S. GOVERNMENT SUPPORTS OPEN SOURCE. BUT WHAT WE DO NOT SUPPORT IS IP THEFT. THE OTHER QUESTION MIGHT BE SHOULD COMPANIES THAT ARE USING CHINESE MODELS HAVE TO DISCLOSE THAT TO THEIR CUSTOMERS? YEAH, THAT'S A GOOD POINT. [00:10:02] Speaker 1: I MEAN, YOU KNOW, WE'RE TALKING NOW ABOUT THIS CHINESE KIMI K-3. IT WAS COMPETITIVE WITH U.S. MODELS AND ON SOME BENCHMARKS. AND SECRETARY, THE U.S. IS GOING TO BE HOLDING THESE A.I. TALKS WITH CHINA IN SEPTEMBER. YOU'LL BE LEADING THAT DELEGATION TO DISCUSS THIS WITH THE CHINESE COUNTERPARTS. IT COMES FROM A NEW REPORT FROM AXIO SAYS THERE'S QUOTE A SECRET TRUMP ADMINISTRATION BATTLE TO FIGHT CHINESE A.I. INCLUDING BEHIND THE SCENES MOVES BY THE COMMERCE DEPARTMENT, THE NATIONAL SECURITY AGENCY AND THE WHITE HOUSE OFFICE OF THE NATIONAL CYBER DIRECTOR SAYING THAT EVEN THEY'RE CONSIDERING IMPLEMENTING AN EXECUTIVE ORDER SAYING U.S. COMPANIES COULD ONLY HOST CHINESE MODELS IF THEY COULD GUARANTEE SECURITY AND TAKE LIABILITY IF IT WERE BREACHED. [00:10:45] Speaker 2: WELL, AGAIN, THESE MODELS HAVE TO BE HELD TO THE SAME STANDARD THAT U.S. MODELS ARE. BUT MORE IMPORTANTLY, ARE THEY USING STOLEN MATERIALS? THERE'S A VERY TECHNICAL A.I. WORD FOR IT CALLED DISTILLATION. WE'LL TAKE A LOOK AT THIS. WE'LL TAKE A LOOK AT THIS. WE'LL TAKE A LOOK AT THIS. YOU AND I WOULD CALL IT THEFT. THEY GO AND THEY HAVE THE HUNDREDS OF MILLIONS OF HITS AGAINST THE LARGE LANGUAGE MODELS HERE IN THE U.S. AND THEY TRY TO RECONSTRUCT THEIR CODE AND THE THOUGHT PROCESS OF THE MODELS. AND THAT'S UNACCEPTABLE. [00:11:20] Speaker 1: WELL, THE CHINESE ARE COMING OUT WITH THESE OPEN SOURCE MODELS AND THEY ARE CHEAPER. AND FOR, YOU KNOW, AN ORDINARY COMPANY, NOT NECESSARILY ONE OF THE BIG MAJOR COMPANIES WITH THE WHEREWITHAL TO SPEND WHATEVER THEY CAN SPEND ON THEIR OWN A.I. INFRASTRUCTURE. THEY, YOU KNOW, A SMALLER COMPANY MAY NEED TO GO CHEAPER. YOU KNOW, IF THEY WANT TO USE THE CHINESE, THE CHINESE VERSION. ARE THEY DOING BASICALLY WHAT THEY DID WHEN THEY DUMPED CHEAP STEEL INTO THE MARKET? I MEAN, THE CHINESE NOW DOING THAT WITH OPEN, WITH A.I. MODELS? [00:11:52] Speaker 2: WELL, I THINK THE DIFFERENCE HERE, MARIA, IS WE ARE STARTING TO SEE THE EMERGENCE OF SOME U.S. OPEN SOURCE MODELS. I BELIEVE META HAS TWO COMING OUT. NVIDIA HAS ONE. THERE'S A PRIVATE COMPANY CALLED REFLECTIONS THAT IS GOING TO BE DEBUTING IN THE FALL. SO IT'S NOT EXACTLY SYNONYMOUS TO WHAT HAPPENED WITH STEEL BECAUSE WE ARE ACTUALLY CREATING COMPETITORS. THE LARGEST EUROPEAN MODEL MYSTERY AL IS A COMBINATION OPEN SOURCE AND PROPRIETARY SOURCE. THERE'S A JAPANESE COMBO OPEN SOURCE. BUT, AGAIN, YOU KNOW, THE LOWEST COST. YOU CAN'T USE COUNTERFEIT GOODS. YOU CAN'T USE COUNTERFEIT GOODS. [00:12:38] Speaker 1: YOU CAN'T USE COUNTERFEIT GOODS, MARIA. YEAH. SO WHAT YOU'RE SAYING IS THERE ARE BIG OPPORTUNITIES FOR AI, CERTAINLY. AND THERE ARE ALSO AREAS THAT WE NEED TO BE AWARE OF IN TERMS OF THEFT, POTENTIAL THEFT BY ADVERSARIES. CAN YOU WALK US THROUGH WHERE YOU SEE THE BIGGEST OPPORTUNITY FOR AI ON THE ECONOMY? BECAUSE NO DOUBT THERE'S HUNDREDS OF BILLIONS OF DOLLARS MOVING INTO THE U.S. ECONOMY FOR THESE BUILDOUT AND INFRASTRUCTURE. WE UNDERSTAND THAT THAT'S LEADING TO A PRODUCTIVITY BOOM WHICH WE'VE ALREADY SEEN, BY THE WAY. JUST EXTENDING IT. BUT WHAT ABOUT THE BIG OPPORTUNITIES IN TERMS OF INDUSTRY? [00:13:10] Speaker 2: WELL, IT'S GOING TO BE INDUSTRY BY INDUSTRY BUT IT WILL BE ALL ALONG THE SUPPLY CHAIN MANAGEMENT. IT WILL BE IN INVENTORY MANAGEMENT AND OPTIMIZING INVENTORY. AND IT WILL BE IN EMPLOYEE PRODUCTIVITY. I LISTENED TO YOUR EARLIER GUEST AND SHE WAS EXACTLY RIGHT. AND YOU'RE EXACTLY RIGHT TOO BECAUSE AI, WHAT WE'VE SEEN THUS FAR, AI IS NOT TAKING ANYONE'S JOBS. AS A MATTER OF FACT, COMPANIES THAT HAVE IMPLEMENTED LARGE-SCALE AI IMPLEMENTATION HAVE BEEN INCREASING JOBS AT A FASTER RATE THAN THE OVERALL CORPORATE POOL. SO IT'S IMPORTANT, ESPECIALLY FOR YOUNG PEOPLE, THE PERSON WHO WILL TAKE YOUR JOB IS SOMEONE WHO KNOWS HOW TO USE AI. YEAH. SO ANYTHING YOU CAN DO TO GET TRAINED UP ON THAT AND BE PROFICIENT, I WOULD ENCOURAGE EVERYONE, NO MATTER WHAT AGE THEY ARE. [00:14:06] Speaker 1: GREAT ADVICE FOR OUR VIEWERS THERE AND PARTICULARLY THOSE PEOPLE LOOKING FOR A JOB COMING OUT OF COLLEGE. LET'S TALK ABOUT THE MACRO STORY. SECRETARY, THIS ECONOMY HAS BEEN ON FIRE AND NOW WE SEE EVIDENCE THAT IN FACT INFLATION IS GOING DOWN. U.S. CONSUMER PRICES DECLINING IN JUNE FOR THE FIRST TIME IN SIX YEARS. YOU HAVE THE JUNE CPI SHOWING INFLATION AT THREE AND A HALF PERCENT MONTH OVER MONTH. PRICES WERE DOWN 4/10 OF A PERCENT DRIVEN BY A BIG DECLINE IN GASOLINE PRICES SINCE 2022. YOU SAY INFLATION WILL KEEP COMING DOWN AS AI STANDS TO DOUBLE PRODUCTIVITY. HOW WOULD YOU ASSESS THE MACRO STORY TODAY, SIR? [00:14:43] Speaker 2: I WOULD ASSESS THE MACRO STORY AS BEING VERY HEALTHY BECAUSE IF WE LOOK, WHAT GIVES ME THE GREAT CONFIDENCE IS THE UNDERLYING ECONOMY, THE GENERAL TREND OF THE ECONOMY IS VERY STRONG AND IMPORTANTLY ON THE OTHER SIDE, THE CORE INFLATION NUMBER HAS NOT ACCELERATED DUE TO THE SHORT-TERM RISE IN ENERGY PRICES. SO WE'VE GOT STRONG UNDERLYING GROWTH, CORE INFLATION UNDER CONTROL, AND THAT'S A FORMULA BOTH FOR A GREAT ECONOMY AND FOR STRONG MARKETS. [00:15:20] Speaker 1: WHAT WOULD BE YOUR EXPECTATION FOR GROWTH IN THE SECOND HALF OF THE YEAR, SECRETARY? [00:15:24] Speaker 2: YEAH, I'M NOT GOING TO GIVE A GUESS, BUT I THINK THAT 3% IS MINIMUM, NOT UNREASONABLE. AND I THINK WE CAN START COMING BACK TOWARDS THE FED'S TARGET LEVEL. I THINK PCE INFLATION VERSUS CPI INFLATION, PCE HAS SOME QUIRKY THINGS IN IT WHERE, YOU KNOW, LIKE THE STOCK MARKET GOES UP AND BECAUSE OF PORTFOLIO MANAGEMENT COST, THE COSTS ARE GOING UP. I THINK THOSE ARE GOING TO BE ADJUSTED THIS YEAR. YEAH. SO I THINK INFLATION IS UNDER CONTROL. WHAT THE PRESIDENT AND HHS, BOBBY KENNEDY, DR. OZ HAVE DONE ON DRUG PRICING IS JUST FANTASTIC. YOU KNOW, WE'RE SEEING THE DRUG PRICING DOWN AND, YOU KNOW, THAT AFFECTS ALL AMERICANS. [00:16:19] Speaker ?: YEAH. [00:16:19] Speaker 1: AND ONE OF THE BEST PARTS, I THINK, OF THE PRESIDENT'S AGENDA IS HOW HE ZEROED IN ON THE FACT THAT THE SUPPLY CHAIN NEEDS TO BE IN AMERICA FOR THE THINGS THAT AMERICA RELIES ON. AND YOU TALKED ABOUT THIS RECENTLY. THE SUPPLY CHAIN COMING BACK TO AMERICA HAS BEEN CRITICAL TO ENSURE THAT THE U.S. CAN MAKE AND PRODUCE OUR OWN, LIKE, PHARMACEUTICALS AND SEMICONDUCTOR CHIPS, THE THINGS THAT ARE NATIONAL SECURITY RELATED. SO MUCH SO THAT THE U.S. GOVERNMENT TOOK A STAKE IN INTEL. WHAT A MOVE THE STOCK HAS SOARED SINCE YOU ACTUALLY MADE THAT INVESTMENT. SAME WITH MP AND THE RARE EARTH COMPANIES. WILL THERE BE MORE COMPANIES THAT YOU'RE EXPECTING TO TAKE STAKES IN? [00:16:58] Speaker 2: WELL, YOU KNOW, MARIA, WHAT WE'RE TRYING TO DO IS CREATE MARKET SIGNALS AND SHOW THE MARKET WHERE WE'RE GOING. YOU KNOW, IN ESSENCE TRYING TO TELL INVESTORS, OKAY, HERE'S WHERE THE PUCK'S GOING TO BE. SKATE TO IT QUICKLY BECAUSE, YOU KNOW, WE WANT PRIVATE SECTOR SOLUTIONS AND WE'RE SEEING THAT. BUT WHAT YOU'RE TALKING ABOUT IS RESILIENCE. AND WE INHERITED AN ECONOMY THAT WAS A MESS, BUT ONE OF THE UNDERREPORTED THINGS WAS THE LACK OF RESILIENCE. AND WE INHERITED AN ECONOMY THAT WAS A MESS, BUT ONE OF THE UNDERREPORTED THINGS WAS THE LACK OF RESILIENCE. AS I'VE SAID MANY TIMES, THE ONLY GOOD THING ABOUT COVID WAS IT WAS A BETA TEST FOR IF WE -- THE SUPPLY CHAINS WERE TO BE CUT OFF, THE UNDERREPORTED THINGS WAS THE LACK OF RESILIENCY. WE HAD BEEN THINKING TOO MUCH ABOUT EFFICIENCY, TOO MUCH ABOUT LOW COST, AND NOT ENOUGH ABOUT RESILIENCY. SO I CAN TELL YOU THAT THIS ADMINISTRATION ACROSS ALL AGENCIES, WHETHER IT'S TREASURY, COMMERCE, DOW, USTR. EVERYONE IS FOCUSED ON RESILIENCY, AND PRESIDENT TRUMP IS GOING TO HOLD US TO THAT STANDARD. [00:18:07] Speaker 1: YEAH, AND OF COURSE THIS WEEK IS A BIG WEEK FOR TARIFFS BECAUSE SECTION 122 TARIFFS EXPIRE, SECTION 301 TARIFFS TO BE IMPLEMENTED, AND THE PRESIDENT IS POISED TO UNLEASH NEW TARIFFS, FRESH TARIFFS ON DOZENS OF COUNTRIES SOON AS THIS WEEK, WE'RE TOLD, AS THE PRESIDENT HAS IMPOSED A 50% TARIFF ON SOME CANADIAN GOODS, INCLUDING CARS, ALCOHOL, AND DAIRY PRODUCTS. WHAT IS THE TRADE DISCRIMINATION THAT IS AT HAND CAUSING THE PRESIDENT TO HIKE TARIFFS HERE ON CANADA? [00:18:36] Speaker 2: WELL, I THINK IT'S SOMETHING THAT WE'VE DISCUSSED WITH OUR CANADIAN COLLEAGUES FOR A LONG TIME, AND THEY HAVEN'T DONE ANYTHING ABOUT IT. THEY'RE HIGHLY DISCRIMINATORY ON DAIRY PRODUCTS. U.S. ALCOHOL AND BEVERAGES HAVE BEEN REMOVED FROM CANADIAN SHELVES. YEAH, THAT'S TRUE. THIS IS REALLY JUST A RECIPROCITY IN TERMS OF WHAT THEY'VE DONE TO OUR GREAT U.S. COMPANIES. SECRETARY, THIS IS AN INCREDIBLE WEEK. [00:19:05] Speaker 1: IT'S THE FINAL WEEK FOR THE HOUSE BEFORE THE AUGUST RECESS, AND THEY'RE JUGGLING A LOT OF THINGS. THEY'VE GOT RECONCILIATION 3.0. THEY'VE GOT A CONTINUING RESOLUTION, NDAA, PERHAPS A CONGRESS STOCK BAN ON THE AGENDA. WHAT'S MOST IMPORTANT IN TERMS OF PRIORITY? BECAUSE WE'RE ALL EXPECTING THE DEMOCRATS TO SHUT DOWN GOVERNMENT AGAIN IN OCTOBER. AND WE JUST SPOKE WITH ONE OF OUR GUESTS, CONGRESSMAN SCHWEIKER, WHO SAID WE ARE BORROWING $83,000 EVERY SECOND. SO WHATEVER IS IN THIS RECONCILIATION 3.0, HE SAYS IT HAS TO INCLUDE STRICT DOLLAR-FOR-DOLLAR AND YEAR-FOR-YEAR SPENDING CUTS TO ENSURE FISCAL SANITY. WHAT'S YOUR TAKE ON ALL OF THIS? WHERE TO CUT? WHERE TO SAVE MONEY? AND WHAT IS A PRIORITY BEFORE THE MIDTERMS IN TERMS OF LEGISLATION, IN YOUR VIEW? [00:19:54] Speaker 2: YEAH, A COUPLE OF THINGS, MARIA. SO FIRST OF ALL, LET'S GO BACK TO THE TOP OF YOUR SHOW. AND IN TERMS OF THE WASTE, FRAUD AND ABUSE, IF WE CAN SAVE HUNDREDS OF BILLIONS OF DOLLARS ON THAT, THEN WE DON'T NEED TO CUT PROGRAMS. SO THAT'S WHY THIS IS IN ALL AREAS OF GOVERNMENT, ALL HANDS ON DECK TO GET THIS DONE. PART OF IT IS TO GET US INTO BALANCE AND BRING DOWN THIS TERRIBLE DEFICIT TO GDP THAT WE INHERITED. WE'RE ALSO WORKING ON THE CLARITY ACT TO MAKE THE U.S. THE BEST PLACE FOR DIGITAL ASSETS. AND I THINK WE'RE AT THE ONE-YARD LINE ON THAT. IT'S IN THE SENATE NOW. SO WE'D LIKE TO SEE THAT PASS BEFORE CONGRESS HEADS HOME. AND AS YOU SAID, WE DON'T NEED ANOTHER GOVERNMENT SHUTDOWN. LAST YEAR THE DEMOCRATS, THE LONGEST SHUTDOWN IN HISTORY. AND WHEN I WAS UP ON THE HILL TESTIFYING, SOME OF THE DEMOCRATS HAD THE TEMERITY TO SAY, OH, YOU WERE WRONG IN YOUR GDP PROJECTION. I SAID, YEAH, IT'S BECAUSE YOU SHUTDOWN THE GOVERNMENT. SO THEY'RE WILLING TO HURT THE AMERICAN PEOPLE TO SCORE CHEAP POLITICAL POINTS. AND SOMEHOW THERE'S THIS NARRATIVE THAT YOU CAN SEE BRUING IN DEMOCRATIC CIRCLES WHERE THEY SAY, WELL, BECAUSE THE PRESIDENT OR THE REPUBLICANS HAVE THE PRESIDENCY, THE HOUSE, THE SENATE, THE AMERICAN PEOPLE WILL BLAME IT ON REPUBLICANS. AND I THINK JUST LIKE SOME OF THESE FAILED CANDIDATES WHO THEY'VE HAD TO PULL OFF THE STAGE, THE AMERICAN PEOPLE ARE SMART AND AREN'T GOING TO FALL FOR THAT. [00:21:32] Speaker 1: YEAH, REAL QUICK BEFORE YOU GO, SECRETARY, THE PRESIDENT IS GOING TO BE REMARKING AND PROMOTING THE TRUMP ACCOUNTS AT WHEELER HIGH SCHOOL IN GEORGIA THIS WEEK. AND IT'S BEEN NEARLY A MONTH SINCE THE LAUNCH OF THE TREASURY DEPARTMENT'S HISTORIC TRUMP ACCOUNTS. GREAT IDEA. MORE THAN 6 MILLION CHILDREN HAVE ALREADY ENROLLED FOR THESE TAX-DEFERRED INVESTMENT ACCOUNTS WITH MORE THAN A MILLION NEWBORNS ELIGIBLE FOR THAT $1,000 TREASURY CONTRIBUTION. HOW WOULD YOU ASSESS THE PROGRAM SO FAR AND WHAT DO FAMILIES NEED TO KNOW TO GET A PIECE OF THAT? [00:22:00] Speaker 2: WELL, WHAT THEY NEED TO KNOW IS JUST GO TO TRUMPACCOUNTS.GOV. ANYONE WITH A CHILD 18 OR UNDER SHOULD CREATE THE ACCOUNT. IF YOUR CHILD IS BORN DURING PRESIDENT TRUMP'S TERM, TREASURY WILL SEED THE ACCOUNT WITH A THOUSAND DOLLAR SEED INVESTMENT THAT WILL GO INTO A LOW COST INDEX FUND. BUT WE'RE ALSO SEEING SOME OF OUR GREAT PHILANTHROPIST LIKE MICHAEL AND SUSAN DELL WHO ARE PUTTING 6.25 BILLION UP FOR AMERICA'S CHILDREN. WE'VE SEEN SOME PEOPLE LIKE HAROLD HAMM HAS ADOPTED THE STATE OF OKLAHOMA. SO YOU DON'T HAVE TO BE ELIGIBLE FOR THE TREASURY SEED BECAUSE GREAT PHILANTHROPIST FOUNDATIONS ARE PUTTING MONEY IN. MANY CORPORATES ARE PUTTING MONEY IN AND WE'RE SEEING -- I THINK THAT THIS IS THE MOST IMPORTANT SOCIAL BENEFIT FOR YOUNG PEOPLE SINCE THE GI BILL. AND I HAVE BEEN AN ADVOCATE FOR FINANCIAL LITERACY FOR MORE THAN A DECADE. IT'S VERY IMPORTANT TO ME. MY FAMILY HAS BEEN ONE OF OUR PHILANTHROPIES. AND I THINK THAT THIS IS GOING TO BE GREAT FOR FINANCIAL LITERACY. I THINK THAT'S THE MOST IMPORTANT TO BE. I THINK THAT'S THE MOST IMPORTANT TO BE. I THINK THAT'S THE MOST IMPORTANT TO BE. I THINK THAT'S THE MOST IMPORTANT TO BE. I THINK THAT'S THE MOST IMPORTANT TO BE. [00:23:20] Speaker 1: I THINK THAT'S THE MOST IMPORTANT TO BE. I THINK THAT'S THE MOST IMPORTANT TO BE. I THINK THAT'S THE MOST IMPORTANT TO BE. I THINK THAT'S THE MOST IMPORTANT TO BE. I THINK THAT'S THE MOST IMPORTANT TO BE. I THINK THAT'S THE MOST IMPORTANT TO BE. I THINK THAT'S THE MOST IMPORTANT TO BE. I THINK THAT'S THE MOST IMPORTANT TO BE. I THINK THAT'S THE MOST IMPORTANT TO BE. [00:23:37] Speaker ?: I THINK THAT'S THE MOST IMPORTANT TO BE. I THINK THAT'S THE MOST IMPORTANT TO BE. I THINK THAT'S THE MOST IMPORTANT TO BE. I THINK THAT'S THE MOST IMPORTANT TO BE. I THINK THAT'S THE MOST IMPORTANT TO BE.