tv Varney Company FOX Business January 3, 2024 10:00am-11:00am EST
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♪ stuart: say no more. and interesting title. new york sixth avenue largely unoccupied. christmas decorations still up. 10:00 eastern straight to the money, dow down 170, nasdaq down 84 carrying on the losses of yesterday. the 10 year treasury yields going up. you are at 397, just a little shy of 4%. the price of oil $72 a barrel up $1.85.
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bitcoin on the downside. 45,000 since yesterday. 42-3 this morning. the latest read on job openings opening up. lauren: 8.79 million, higher-than-expected and slightly higher than we saw in october. investors were expecting that. overall we had seen a downward trend, the biggest jump was april to july. the number we just got was the lowest since march of 2021. the bottom line when it comes to the fed looking at this number, this creates a scenario the fed is more likely to cut. stuart: what is the latest read on manufacturing? lauren: the number came in 47. 4, want to make sure i've got that right. the number of manufacturing 47. one and investors are watching manufacturing, president biden
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said he was going to bring manufacturing back home. hasn't exactly done it. based on manufacturing breaking. stuart: down 100 points lower for the nasdaq. what is a university all about? surely the search for truth, exchange of ideas and pursuit of excellence. a university should academic eric meritocracy, compete to be the best in your field. that's not what universities are about in america today. harvard is the most prominent example. claudine gaye became president after the shortest search period and harvard's history, never written a book, published only 11 articles in 26 years but she's female, black, and supporter of diversity, equity and inclusion. that's dei. that is what harvard wanted. not can it academic meritocracy.
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an intellectual straitjacket. who teaches and what they teach. they have no time for any opinion than theirs. claudine gaye's appointment as president of harvard six months ago marked the high point in progressive control, she breached the pinnacle of a her resignation march the turning point not just for dei but identity politics as well. it failed at harvard and failed in the biden administration. one last point. the writing was on the wall before claudine gaye came along. in 2,006 the eminent economist larry summers was harvard's president, he ran into the progressive mob. he made the mistake of just suggesting that women might lack an intrinsic aptitude for math and science. free-speech does not extend that far.
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can't debate that. he was forced to resign. second hour of varney just getting started. ♪ lose peak with me now. how we reached a turning point on dei? liz: i think we have. happy new year. i think it is going to be a happy new year because america is waking up to the idiocy of the progressive left agenda that we see not only in the biden white house but across the federal government and our institutions like academia. one more thing on the claudine gaye situation that i find alarming which is her defenders are not just suggesting she's entitled to this position because of her race and gender but should be held to different standards because of her race
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and gender. fair-minded americans look at that and are appalled by the double standard. plagiarism is plagiarism whether a white professor or black president. it shouldn't make any difference but in harvard's case it apparently did. i think we should all be offended by this but this is the tip of the iceberg. we are seeing gei hires across corporate america plummeting. we are seeing esg investing on social guidelines instead of for financial reasons. also declining with funds last year down for esg. we are seeing a americans attitudes toward illegal immigration really harden which is a sad thing but totally because of the biden administration. there are many aspects of what this white house has done to this country that i think people are offended by and they are waking up.
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stuart: people are waking up. it is obvious what's going on and things are going to change. time is very limited but thanks for being with us. former attorney general william barr sounding up on the left's push to get donald trump off the 2024 ballot. he says the actions of colorado and maine and other states that follow suit are not only doomed to legal failure but embolden and empower the former president. when the left does this it just boosts trump, doesn't it? lauren: william barr is no fan of trump. that's important context when you hear his words. the former president's poll numbers go up every time they think the state is going after him in a way that is not fair. he went on to say the efforts would, quote, undercut the credibility of legitimate
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efforts to hold trump accountable and people are going to look at what happens here. if they feel the system isn't fair, they feel the election is to a degree don't want to use the word rigged but is the only thing i can think of as a result of this, makes him that much more powerful. bar doesn't love him, that's legitimate efforts to hold him accountable. that's a separate issue. he's never been charged with anything. he's she's never been convicted. william barr is a legal scholar. stuart: conducting lawfair and trump is the beneficiary. nikki haley pressuring donald trump to show up to the next republican debate. lauren: she said with only three candidates qualifying for the cnn debate it is time for donald trump to show up, she posted this on x formerly known as twitter. the funny part is he may not be showing up to that debate but doing on fox news next week. he learned when he has the
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stage to himself he can get his message across, he can talk about the economy, the border and all the issues and policy issues that matter rather than standing up there and fighting with these people and jabbing each other and creating those news moments. stuart: people are going to watch that as opposed to the cnn hosted debate for the other candidates. time to get back to the markets. you were a bear in 2023. are you starting this year with any bullishness in you? >> i am. we've been talking about the first quarter dip we are anticipating is the market got overextended. there are some areas we are buying. india continues to be our biggest conviction we currently still own. we will be buying that on dips. my team pointed out and outperformed the nasdaq.
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we haven't had dips by a lot more. we own a minimum position in energy, looking for places later on in the quarter. we are going to be looking to add small caps. we don't currently have small-cap exposure for clients but if this market is going to broaden out after we get through the first quarter i think you will see the names that did not work last year are going to broaden out but those are the areas we are averaging into but the biggest area we are excited about is the dividend players, seeing 6, 8, 9% yields on holdings right now. we are going to start lattering those in. if you create a cash flowing strategy, asset with a nice upside it can buffer a lot of volatility, lots of twists and turns this year. stuart: everyone is waiting for a fed rate cut. when will be get one? spring? april, march? what do you think?
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>> a lot of people are pricing in march. i don't see a cut in march unless we are in a recession. why would they cut if inflation is coming down and everything things stable economically? i think we will get a cut late spring early summer unless the economy falls off a cliff luzader holdings we told our clients, on a very short leash because the fed is in a tight rope. the market is pricing in three cuts. they don't deliver on three cuts. you see rates come back up and that's not good for risk assets. you've got to have your head on a swivel and to be dynamic. stuart: don't answer the question, you' re not a super bowl. we will see you again soon. education plans to hand out more student loans this year. nearly 9 million borrowers have yet to resume payments after a three year pause. mark meredith has that story coming up.
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louisiana the power to approve wells that harden underground. senator bill cassidy from louisiana joined me now. what is this about? storing carbon underground? can't imagine the greens like this. >> that step back a little bit. what it means is better jobs for american workers, more business for american businesses. there's a competitive advantage for products made to lower carbon intensity. if you make plastic and fuel and producing a process which reduces carbon dioxide, sequestration is to take that carbon dioxide out of the smokestack and store it beneath the ground. the greens don't like it because they think we can do without fossil fuel as they jet in their private jets to go to a cop conference halfway around the world, jet fuel made out of fossil fuel but what we are doing is saying listen, you can
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have your cake and needed too. you can take your jet fuel and we are going to sequester that carbon and even find a way to use it and some other process to make some product, did i say it is good for workers and businesses? we will be at a competitive advantage because we are producing these products. louisiana has primacy. we can permit storage of this under the ground without wading through the epa. it takes two years on average. if louisiana doesn't like other states it will be six months so it's faster to get the permit and more investment which means more jobs and better business. blue when you consider this a win. another one for you. senator bob menendez has been hit with more federal charges, securing us deals in exchange for valuable gifts. a $24,000 watch.
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one mayor in new jersey running to unseat menendez sounding off. >> this is bigger than bob menendez. this goes to the heart of democratic politics. he has been in some cases perpetrated by democrats and he has been enabled. you have the chair of the foreign relations committee supposedly taking bribes and what country has been not only coasting but protecting the leadership of hamas, terrorist organization, this is a very interesting thing that needs to be on woven. stuart: senator cassidy faces corruption and bribery charges. is it time to step down? >> i don't think anyone trusts bob to make a decisions in the interest of the united states. unfortunately this has tainted his ability to do that and work with others.
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trying to represent the people of new jersey, the united states and last trust so it will be difficult for him to continue. stuart: i have to get your thoughts on claudine gaye stepping down as president of harvard. will her resignation change anything in higher education? >> keep in mind she stepped down not because of the intolerant atmosphere at harvard where if you have something that was not woke you were shut down. she was fired over plagiarism. i would like to think this would be catalytic for an extra patient, a removal of wokesm as a guiding principle for higher ed. in the meantime keep in mind, she's stepping down because of plagiarism and staying on faculty. that i think is very telling guy. he would not allow a phd candidate to qualify for a phd if she plagiarized but allow
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someone to teach at harvard even though there's 50 counts. stuart: we covered a lot of ground in a few short minutes. thank you, thanks for being with us. what do you say? does it change anything? >> i don't think it changes anything. she is still staying on, still getting paid. she had an opportunity as the first black president of harvard, she was only on this position for six months at a day, she had an opportunity she squandered and is playing victim as a result of her actions which compounds the whole situation. unless the school does and about face and starts to change how they are teaching, not indoctrinating students, i don't blame the students were protesting because they have been brainwashed. we will see how this shakes out in the future but for right now a huge change not for me. stuart: the department of education just rolled out its
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new overhaul of the student aid application known as fas a. is the website facing issues already? >> reporter: it is. try applying for financial aid. some people are learning to do federal student loan application, questions about what is happening so the department of education unveiled an application for federal student aid. some users are getting error messages when starting the application. we heard from the department of education leading up to and during the soft launch we uncovered minor issues affecting users at various points in the application process which is to be expected with the launch of a major new website. the government saying be patient but this new apps features a significant redesign to help them understand how much aid they may be getting. it takes the guessing game out
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of the process. millions of borrowers guessing when they might see student loan forgiveness. last year the supreme court struck down president biden's plan which would have forgotten $10,000 debt, 40 million americans so since then, we've seen interest rates accumulating on these loans. financial services say they are waiting to see how many are not paying these bills. >> by january when we really see what the numbers tell us about financial challenges. >> reporter: the biden administration is developing plan b for student loan forgiveness but this is in the works and we don't know who will qualify and there will making progress and we will learn more this summer. you know there will be legal challenges right after this. stuart: of course there will be legal challenges. this is america. now this. apps-based delivery drivers in
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new york city and seattle are making higher minimum wages despite warnings that it would increase customer costs and businesses are worried that more states and cities will follow suit. madison alworth has that story. the head of the imf says our economy is headed for a soft landing. does that mean the fed did a good job tamping down inflation? that's next. ♪
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a combination of recent outperformance, they signaled a 33% downside from current levels. the developer of league of legends announcing its participation in the upcoming saudi backed he sports world cup, it is a significant collaboration in the industry and it will feature top professional league of legends teams from around the world. last one, xerox announcing plans to lay off 15% of its workforce saying the layoffs are part of a new operating model and organizational structure that focuses on three key areas stabilizing the hampton productivity via global business services organization and diversify revenue. bottom line you are seeing red in xerox but those layoffs, we keep seeing that. stuart: frequently stocks go up
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when layoffs are strong. investors don't like what's going on. delivery drivers in new york and seattle making higher minimum wages. you are talking to business owners. are they going to raise prices because of this? >> reporter: they haven't yet, but it is a real possibility. this has been in effect a couple weeks. i'm here with andrew shipper. 40% of your business is take out and catering. have you seen an impact on the restaurant? >> not yet but we expect to. no question the money has to come from somewhere. these delivery platforms lose hundreds of millions of dollars a year, none made a profit at all and they can't absorb it. they have to pass the cost along or figure out a way to recoup that cost, likely it will come from the restaurant
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or the customer or delivery drivers in the way of tips. >> reporter: the goal of this was to increase the wages for delivery workers but we are seeing changes. you saw uber has removed the tip option. used to be as you were checking out you were asked to tip. that has been removed it. you have delivery drivers coming in constantly. what are you hearing about this? >> they are very excited about the wage increase but surprised at the end of the week they are making less money. that's what they care about whether it comes from tips or higher wage, whether paycheck is at the end of the week is what is important to them and they are seeing declines. >> reporter: i want to talk about uber. we did reach out to them. what uber had to say about this rule change, we have warned that new york city's $30 an hour pay rule would discourage
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tipping and force careers to go faster when delivering or delivery and that is what is happening. i want to end with this. one thing andrew told me can make it cheaper for those in new york is to order directly from the restaurant. so it does delivery, not just take out but delivery. order from the restaurant it is cheaper for you, the customer, cheaper for the restaurant because they are not paying get for overreach or door - -, we are seeing a lot of changes in new york city, first to make this change we will see if it goes further than that. stuart: the managing director of the imf says our economy is headed for a soft landing. watch this. >> people should be feeling good about the economy because they finally see while that has
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been especially for small businesses, it has brought the desired impact without pushing the economy into recession. my message to everyone is the job and interest rates moderate this year because inflation is going down. stuart: it is great stuff. we have an economist named john lansky. did the fed do as good a job as a lady says? >> the fed got us in trouble in the first place. we have the fastest money supply growth since the second world war, got out of hand if you look at it. the explosion of money supply relative to gdp, access to liquidity, more cash on hand and able to afford higher prices but that's not winding down. we could be in for a surprise
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come march of this year when the excess cash has disappeared. excess savings. stuart: than what? >> consumer spending contracts, drops and with layoff, the unemployment rate goes higher. unemployment rate edges higher along with disappearance of excess cash. more than expected consumer spending. of companies find out there sales are not being cleared, they lay people off and you go ahead and trigger this downward spiral. stuart: you are not in your head. jackie: it is not about jerome powell. he had to raise hates -- rates to deal with it. over the last three years, they do these knee-jerk things, many spending and inflation at 90%. sticky inflation in the economy
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right now is so angering to me and you have to hike the rates to get people to lose their jobs to make it stop, why? >> jackie is telling us one of the reasons we had better-than-expected economy is increased government spending. last year the economy grew 10.4% but government spending is only 4%. where is the growth in the private sector coming from? healthcare. who cares their issue pays for healthcare? this is an investment spending. with that coming from? 's from cities for green energy and evs and the light, the fastest-growing segment there was a, believe it or not, business structures building for microchip companies, microchip companies are getting subsidized by the government. stuart: if we run out of excess cash by march or april or
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spring, that implies going into recession and inflation will come down. >> will come down the hard way through recession. stuart: the fed has not been successful. >> they cut through this problem in the first place, perhaps we can forgive them because of the unprecedented uncertainties that are rose from the covid crisis. that rapid growth of the money supply underwriting the huge increase in the federal debt that got to this point of rapid inflation. stuart: tell me about the debt we have hanging around our debts. what happens in the future? it will go up some more. what's the impact? >> these baby boomers getting older, the government spend money on them. they have to spend money and on top of that you are going to have a huge increase in interest expense related to the federal debt.
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you are going to find what you are spending on interest expense will be significantly greater than what you spent for national defense and that is scary. stuart: none of this is good. >> rough outlook longer-term. stuart: thank you very much. we told you about california being the first state with undocumented migrants, i want to know who pays. chicago using millions in covid funds to cover the cost of migrants with border crossings reaching an all time high, no end insight. kelly has that next.
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stuart: we've been telling about the hundreds of thousands of migrants pouring across the southern border. is this affecting the us population? jackie: it is. they are saying 1.7 million people were added in 2,023. keep in mind that is a big number jump. 335.9 million residents, you and i both know that when you count the ones we know about and don't know about, 10 million migrants have come into this country, they came over the last three years a big portion of it coming from the migrants. you know we can't account for many of them. 10 million, 3 million more next year. how much more are people going to take in this country? it is amazing. let me tell you this which mexico and venezuela started repatriating people from venezuela to mexico so they can come into this country and the
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two countries we start sending back mexico to venezuela. you know how many flights of taken off? two. thanks for the help. stuart: thousands of migrants pouring into chicago. how many have been allowed to work? jackie: 1%. this has been going on at one% have work permits. whether it is chicago, new york, whatever sanctuary city it is, taxpayers are bearing the burden of taking care of people in new york city, it cost $40,000 per person per year, right? what some people make better working in their salary. it is amazing. stuart: keep an eye on the bottom right-hand corner of the screen, the dow is down 300 points accelerating the downside move. chicago's they are wants to use covid funds to pay for the migrant crisis. is the city council on board with using covid money like
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this? >> reporter: no. the use of this $95 million is not sitting well with members of city council. alderman anthony beal has blasted the mayor saying there needs to be more transparency and they need to provide input on how this money is used saying, quote, covid relief money was supposed to go to relief are or the people of chicago, not migrants who were migrating to our city. people who lost loved ones and resources we lost during the covid pandemic. 33,000 migrants have evolved in the windy city from texas since august of 2,020 do. brandon johnson continues to call on the federal government to provide aid to deal with the crisis. >> what we have is an international and federal crisis of that local governments are being asked to subsidize. this is unsustainable. in our local economies are
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positioned to carry on such a mission. >> reporter: texas governor greg abbott taking to x to criticize the mayor of chicago and new york saying, quote, texas has transported 90,000 migrants to sanctuary cities like new york city and chicago have seen only a fraction of what border towns face daily. we continue the transportation mission until biden reverses course on open border policies. illinois's governor's office set aside $160 million in the state budget to deal with the migrant crisis. in addition to the money from the state, chicago budgeted one hundred 50 million in cook county and one hundred million. department of homeland security tells ask io's they issued 480 work permits for chicago area migrants. stuart: thank you very much.
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so many people banking on biden dropping out of the 24 race that they are putting money on it. we will tell you how much people are wagering. crime is so out of control in dc, 50 restaurants been forced to close. grady turnbull -- trimble tells us about the crime wave in restaurants. ♪ three forks ranch is the destination for luxury and adventure. enjoy private skiing with 23 runs for every level. kick back for intimate performances from the best in country music. enhance your wellness and longevity through our mayo clinic programs, or plan your meeting for a memorable corporate retreat. discover the west kept secret. go to threeforksranch.com to book your luxury experience.
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stuart: the dow is down 300, nasdaq one hundred 48, the yield on the 10 year treasury goes up, stocks go down. crime has forced 50 restaurants in washington dc to close in the last year. grady trimble, you spoke to business owners. what are they telling you in dc? >> reporter: crime has gotten so bad here, they pooled their money together to hire off-duty cops for security and install new security cameras and add streetlights in an attempt to keep customers and employees safe. violent crime in the district
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is up 39% from 2022-2023. the homicide rate is the highest since 1997. you mentioned that survey of restaurants, it found 100 restaurants of closed in the last two years. restaurant owners site rising crime and rising costs as the top two reasons. some business owners tell us elected officials need to do more to keep people safe. >> we know how to problem solve. decided to band together on our own. we want to to have dinner somewhere else, have a turkey or vice versa. moving to virginia or maryland. >> reporter: not just restaurants. a lululemon store in this neighborhood, the navy yard neighborhood where a lot of crime has been happening also closed its doors for good last month. unfortunately it is a bad recipe for business playing out
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across the country. crime goes up and fewer people visit the area. stuart: grady trimble, thanks so much. democrats claim victory in violent crime is down, here's why they are wrong. jason, they say crime is down, tell me more. >> context to the data, and it is framed in the context of public polling, they are concerned about the crime wave that is happening and believe that it's going up so they are saying the american people are wrong, fox news and fox s a wa for their policies. it is true that homicides are down compared to two years of cities hitting historic highs. comparing the numbers to
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pre-covid we are up dramatically. i was looking at denver, down 4% last year but 2019 it was up 14%. when you compare 22018, they are up 86%. so we are looking at the data the way people normally look at it. we are looking at it compared to the norms. expectations in our community. the fact is we are not hitting those expectations. i will point this out, the cities that saw the most dramatic dips in homicide rates have started to reverse and reject the defund movement, the ones that reverse the policies that came with it. stuart: there are lies and statistics, can't remember who said that but somebody said that. seattle boosted its minimum
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wage to 1997 per hour. that's at large companies. is that affecting local prices? >> absolutely. it is ironic because folks will argue the reason we need higher minimum wages is it is so expensive to live in the area. the reason it's so expensive is we keep raising the cost of doing business. what we are seeing is not only prices going up. the folks who have the lowest level of skill find them selves not have an easy time getting a job. you are seeing job end up getting put into one bucket so instead of having two employees they consolidate into having one apply, hours get cut. what alarming and this is what they say on my radio show, what happens in seattle doesn't stay here. cities around seattle are moving forward with raising their own minimum wages which is hurting their local economies as well.
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stuart: it was benjamin israeli who said there is lies, damn lies and statistics. i want to straighten that out. one more for you. i want your thoughts on claudine gay stepping down as president of harvard. does this market turning point for this diversity, equity, and inclusion dominance we have in higher education, is that into the background now? >> we have seen folks in the corner saying this is an example of white supremacy at work, solely because she's a black woman. all this was about was accountability, not racism or sexism but that corner will continue to push that narrative. unless the media starts to switch gears and focus on why this happened, we are still going to see progressives hang onto that dei nonsense. the general public, they do no better and it is on us to turn the corner. it's not going to be on the harvards of the world or
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progressive activists. stuart: see you again soon. may i say thank you very much. still ahead. martha maccallum gives us a preview of the upcoming town hall with donald trump. christian wyden on a bombing in iran on the anniversary of trump droning general solar maney. mark tepper on what he is buying in the new year. the 11:00 hour of "varney and company" is next. ♪ ♪ ♪ they're waiting for you. hey, do you have a second?
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>> why would a vote for a person that's put my life in such a tail spin when i can go back to policies when all i have to do is put up with a few tweets i don't like. i think i can handle that. >> we don't need more money or infrastructure or technology, we need policy. if this administration would give us proper policy, we can secure the border tomorrow. >> here we are completely upside down world and they're trying to ban natural gas piping and the
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