tv Varney Company FOX Business June 21, 2023 10:00am-11:00am EDT
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think about things. it is 10:00 to the money. some selling on wall street, the dow down 120, jay powell beginning his testimony now talking about inflation and the economy. he won't say anything dramatic but is upsetting the market a little. the 10 year treasury yield moving up 3.79%. this price of oil still around 70 one dollars a barrel but bitcoin is the breakout, $29,300 and rising, there's talk of black rock, that is up big time. as of now just after 10:00 eastern, jerome powell testifying before the house financial services committee talking about inflation and the economy, lawmakers want to know if he's going to raise rates next month. we will bring the headlines as
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we get them from that period. it is getting serious. big blue state falling off a financial cliff. it is sudden and dramatic and there will be consequences. new york in the last two months revenue from income taxes dropped 45% even though tax rates are 14. 8% in new york city. in new jersey just last month, income tax revenue down 55%. corporate tax revenue down 44%. %. the state has the highest business tax rate. california the last 12 months income tax revenue down 34%. in short the money flowing into blue state treasuries is falling off a cliff, drying up. big government funded by superhigh tax rates does not work. it kills business and pushes, blue states have a choice,
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raise taxes, is not going to work, more people will leave. or cut services. that is risky with elections coming up or the old standby, ask the democrat in the white house for a bailout but how would that go down with a presidential election in 18 months. i will close this by looking at florida, no fiscal cliff, corporate tax revenues are up 57% and there is no state income tax in florida. red state failure, blue state success. that should be at the center of the 2024 election and it will be especially if ron desantis against newsom. second hour of varney just adding started.
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liz peek has been watching me perform this editorial. i believe you are shocked by this cliff they have fallen off. it's really dramatic. liz: it brings home the problems these blue cities have. it is high income taxes which made starting a business incredibly hard, middle-class residents are fleeing because they can't afford it but show me the evidence that raising taxes ever produces more revenue. that's the bottom line. wouldn't it be something if new york decided to cut taxes because here's a thought, all these people who fled to florida would like to come back, they like new york. i have friends counting the days and now they are back for the permitted 2 or 3 weeks before they go to the hamptons. they are thrilled to be back. they are out of broadway, going to restaurants, enjoy new york
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city, new york city is a vibrant exciting place to be. cut taxes, bring people back, that's a thought no one will ever put forward. it would work, i guarantee you. particularly the death tax. that says everyone over a certain age out of their estate, they are afraid to die in new york. every tax accountant tells them get out of new york before you die because it will ruin your family. the true story. stuart: i heard it myself. abc's jonathan carr warning the hunter biden criminal record will be an issue in 2024. >> it is going to be an issue whoever the republican nominee is but especially if the republican nominee is donald trump. they will point to hunter biden as somebody with a criminal record and insist the biden
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justice department gave a slap on the wrist when he deserves a more. more. donald trump and probably whoever has the republican nomination will try to make the biden family a major issue in the campaign. stuart: i think he is right. hunter is going to be an issue. liz: hunter is part of a bigger tapestry, there's a two tier system of justice. the fact you have hillary clinton getting off scott free on charges basically similar to what donald trump is facing, mishandling classified information, lying about it, not conforming to an fbi subpoena. hillary clinton, president biden, hunter biden, it would be an issue, you will hear about nothing else and they want to hear from ron desantis why policies in florida could rollout nationally and help our
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country sustain and enjoy an economic revival. that's a message people want to hear. stuart: you have an editorial, biden's campaign has democrats in panic mode and five listed items including democrats are trashing robert f kennedy junior. why are they doing that? >> he's polling 15 to 20% and has no campaign to speak of. he just out there, he is a credible with big name recognition rival to president biden. what i should have said is president biden is trailing donald trump. that never happened in 2020. he never was behind in the polls. now he's behind in the polls. democrats have me thinking what is going on here? they are not raising money, trashing rfk, gavin newsom is all over the place, the candidate in waiting.
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there's a lot signaling president biden may not be the candidate and if he is they are in trouble. stuart: and we love it. liz: would love to have a good slate on the republican side facing against president biden. stuart: politics -- liz: too much fun. stuart: the hunter biden campaign says the case is closed. >> hunter will plead guilty to two misdemeanor tax offenses. $2,000 in back taxes over two years and enter a plea trial diversion agreement, the bottom line is he will stay out of jail. republicans are crying foul. william bar says the doj is responsible and they are stonewalling. >> half the country believes there's a double standard of justice. i believe there's a double
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standard and i've been an insider and i said before these pleas were announced, critical the department provide assurance to the american people these cases will be fairly and thoroughly followed through on and now that is especially heavy. lauren: the doj should release the documents that they have been talking about. the 1023. it alleges bribery, re-lease the form and not have more than half read acted. that's how you get something in this investigation instead of this feeling that is offensive to most of the country the, this two tiered system of justice. stuart: to the markets, we see some read as jay powell starts his testimony, one hundred 60 on the dow, 130 on nasdaq.
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you are not buying this idea that the federal reserve is pausing rates and will raise rates in the future. you are not buying that. what do you see happening? >> we will see a short-lived rally, i'm not going to get to the pause and pivot like the market anticipates. i'm not buying this narrative for a couple reasons. the only strong point in our economy is the jobs market. we've got a lot of baby boomers retiring, the last part to hold on before recession. core inflation the fed has declared multiple times, most important inflation indicator, stuck at 5.3%, down 0.3 over this year, different from the headline inflation which has
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come down more. i don't believe this is in a hawkish position, in a position of strength. this is the federal reserve's part, don't think they will be raising more going forward because they are recognizing the challenges we are facing today, the banking industry and the banking industry is in big trouble relative to the fact they have to complete with 5% treasuries that ensure all the amounts, not just 255,000 on fdi see and my major bank, i went in and asked what am i getting on my checking account? 0%. what about savings account? 0.5%. 0.05%. even the largest too big to fail banks are not able to compete with treasuries and they are finding themselves in this restrictive place. the cold water on the market is going to be that the fed cannot produce interest rates like
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they have anticipated, the feds that we will be raising two more times this year. i don't think they will raise those rates. this is the fed's way of getting everyone to calm down. of the market rallies too fast it will create more inflation. stuart: not supposed to say this but only time will tell and that is the truth. david, thanks for being with us. the movers are moving. we are on top of it. we start with adobe, up or down. lauren: they are graced to outperform, the stock going up $570, the reason is simple, artificial intelligence, but professionals are more likely to pay for artificial intelligence in adobe products but freelancers and students who use their products, more than half are willing to pay for it so it is a win/when, they upgrade the price target of 570. stuart: where is uber?
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nice rally recently. lauren: still higher but uber is expected to benefit from another stellar travel season this summer. that's from oppenheimer. they say who does the airport trips? more people flying, tsa checkpoint numbers show 2019 levels but also uber, when you are on vacation, wins both ways. stuart: winnebago. lauren: it was down 8%. it was down 8%. rv maker, the stock is down 5 days in a row, their sales up 38%, huge discounts to juice demand. the pandemic boom has faded. lauren: thanks very much indeed. for the first time ever, former special counsel john durham is testifying in an open house judiciary committee hearing on the trump/russia hoax.
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the latest from that hearing in the next hour. republicans grilling the epa over its push to target everything from your car to gas stoves. some lawmakers say biden subsidies are flowing back to china. grady trimble has that story. donald trump blames president biden for ending our energy independence. watch this. >> we created a machine, energy independence. it was done, they are getting ready to drill and biden ended it. stuart: the governor of south dakota will talk about energy independence and attracting workers to south dakota. that is next. somebody would ask her something and she would just walk right past them. she didn't know they were talking to her.
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stuart: new pool reveals voters are angry about biden's push to ban gas stoves, even democrats. lauren: 7 in 10 americans don't want gas stoves band and that includes democrats, 55% according to a new harvard hole. this is what is going on by house republicans with democratic support, to prevent consumer agencies from financing any roulette the federal level that bans your gas stove in cities and states like new york that are banning them, and much of the country is against that. stuart: the band will happen. lauren: eventually. stuart: it's going to happen. the government has the power to organize your bathroom, your shower, your toilet, everything. lauren: new construction, smaller building starting in 2026, they have to have electric.
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stuart: "varney and company" will be part of the pushback. the epa being grilled on capitol hill, this is the plan to ban power plants and clampdown on power plants, grady trimble on capitol hill. what's the latest? >> reporter: the house oversight hearing just started and republican lawmakers taking aim at the epa official taking aim at two new proposals the epa says will help with climate change but republicans say is bad for consumers. one targets emissions from power plants, the other targets emissions from cars and would increase electric vehicle sales over the next decade. yesterday members of the house select committee on china met with the ceos of general motors and ford. after those meetings republicans on the committee
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bashed the ev rule saying it will make us more reliant on china for ev batteries. >> they set some ambitious goals and those goals may be good aspirations, they have real world consequences. it enables china's strength in the automotive area. >> reporter: republicans on the hill want to stop what they call woke investing, they start the bill today. financial advisors to focus solely on maximizing profits, not on climate change and other social issues. earlier this year, barr was behind a resolution aimed at blocking a biden administration rule that allows fund managers to consider environmental and
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social issues when making investment decisions. it ended up on president biden's desk but he vetoed it so now republicans are taking another approach to stop esg investment. stuart: thanks, now this. trump blames biden for ending our country's energy independence. >> when i took this country over it was broken and we created a machine and the energy independence -- it is as big or bigger than saudi arabia. the first day of the biden administration they turned it into the deal. they were getting ready to drill and biden ended it. we were going to make so much money. we got to covid. stuart: the governor of south dakota, kristi nnoem, we can't wave a magic wand, how do we get back to energy independence?
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>> we could get a new president was amazing what president can do the first day in office, look at the damage president biden did. he did shut down drilling, he did end the keystone pipeline on the very first day and that crippled us and emboldened our enemies. get the right person in that office and things can change pretty quickly. stuart: he wants to go back to the policies of his first term. most people want that too. they don't want his persona. where do you stand on that? >>'s policies were great for south dakota. i got the chance to work with donald trump when i was in congress on tax reform which was incredible, gave people more money in their pockets. as governor he let me do my job, let me make decisions that were best for my state during the covid pandemic, never shut down business, mandated anything on donald trump let me do that. of president biden had been in office he would have crushed us. so that is the difference in leadership and the
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consequences. it matters who wins these offices and the decisions they make and that's why we are suffering by having this administration there. stuart: south dakota has all-time low unemployment rate, 1.9%. you need workers. is the ad campaign to attract them, watch this, roll tape. >> south dakota is hiring is the first state to bounce back from the pandemic, we have one of the nation's strongest economies and more jobs than we can fill. that's why i am pitching it. stuart: how do you attract people to south dakota? it is a fairly flat state and very cold in the winter. >> it is beautiful. we do not have leeches. we don't have beaches or beautiful january's but it is amazing people that are moving to our state for freedom. we have been growing 5 to 10 times the national average
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because people want to come here and have a government that protects their freedoms. we have done modeling, identified, gathered information on 2 million people in this country that want to move to south dakota so this national marketing campaign is targeting them and others and telling them about the opportunities we have. we are training apprentices in the so many industries, recognizing licenses from across the country. when they go to freedomworks.com we connect them with people who will help them find homes, school districts that are perfect for their children, get them into jobs that will get them a career for the rest of their life, they don't have that in other states. we have the lowest unemployment rate in the history of the nation in south dakota. everybody works and everybody takes care of each other. we have businesses that need more people to fill their open positions and we will make sure those people know about the opportunities we have in our state. stuart: that was a great
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advertisement from the beautiful state of south dakota with an unemployment rate of 1.9%. thanks for joining us, appreciate it. >> anytime. stuart: next case, donald trump might skip the gop primary debates. watch this. >> you suggested you may skip the early republican primary debates. still of that mindset? >> when you're 40 points up running against, one came out today, 51.7. stuart: martha mccallum will be moderating with bret baer. we will get her comments on trump and the debate later in the show. rescue crews heard banging every 30 minutes where the tourist submarine disappeared. it's a race against time, the oxygen supply will run out tomorrow morning, the latest on that.
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and i remember kind of thinking like, "oh my gosh, i think we could be sisters." because i think we looked... yes. right. yeah. and i don't think at that time- i think you're the one to tell me that we had the same birthday. yes. it's really unbelievable when you think about it, because it's been, like, really over 20 years that you were my mother and father's banker, you became my banker and now fran is in her third year of college and you're her banker. it's so unbelievable because i'm just 20 years old. [laughing] ♪ shelves. shelves that know what taste buds want. shelves smart enough to see, sense, react, restock. ♪
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lauren is back with the movers and let's start with amazon. >> the ftc has sued amazon alleging amazon tricked customers into subscribing for amazon prime, and intentionally sabotaged the cancellation process making it hard to get out of the deal you didn't know you sign up for. that is called manipulative, they are specifying things. stuart: dollar tree. lauren: they are reaffirming outlook for the year, stocks of 3%. the ceo says they are targeting $10 per share in earnings for fiscal year 2026, essentially double what they will get this year. assortment of value items at different price points. $1.25, dollar tree might be $2, $5. stuart: in rural america you
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see dollar tree stores, they are doing great business. lauren: with consumer income. stuart: better show me peloton. lauren: stock is going to $6, lauren: experiencing lower demand. they don't see a way out, management to ridership. stuart: just getting notes on jay powell. stuart: night at the current pace. lauren: dow is down 65 points. stuart: search and rescue efforts continue for that missing submersible. they detected underwater noises.
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ashley webster with the latest. time is running out. ashley: based on what the coast guard said yesterday, somewhere between 24, and 22 hours but there is a small glimmer of hope as you pointed out. canadian surveillance plane detected banking sounds every 30 minutes in the area the submersible went missing and additional sonar devices were deployed, the banking was still heard. the coast guard put out an update saying canadian piii aircraft detected underwater noises in the search area. as a result, our ovi operations were located in an attempt to explore the origin of the noises, those searches have yielded negative results but continue. of a u.s. navy is analyzing the data as more vessels are arriving in the search area but time is becoming critical. even if the submersible is
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found, the only real chance of survival, say many, would be to hook a cable to the stranded vessel, real it up to the surface where the craft's had could be drilled open but that process alone could take a day or more to complete. the situation is very challenging. ocean gate, the company that operates the missing submersible has a history of questions over its equal and's safety including a former suffering pilot who said he was fired after raising concerns about the vessel at structural integrity. records show david lockridge, a former director of marine operations lacked potential safety issues saying he had become increasingly concerned about the lack of testing on the vessel's howell. he claimed the company refused to pay for nondestructive testing in unmanned pressure testing and he was fired after telling the company executives he would not authorize any man
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test of the submersible until that testing was complete. the suit was eventually settled. we can say ocean gate maintains its tightened submersible is safe, but at this moment remains missing with the clock ticking. stuart: thanks very much. former navy captain brett sadler is with us, he served 26 years in the navy, 18 of those years on submarines. i want to talk about the temperature for second. we talk about how much oxygen is there but the temperature at 12,000 feet down is frigid. if they don't have enough power they are in trouble. >> absolutely. it will be cold and very humid inside that submersible. very very dark. they definitely if they are able to maintain their energy levels, that will slow the
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oxygen consumption but that cold temperature is not pleasant. adding to it, the dark and eerie quiet, thousands of feet underwater. stuart: we are all praying for them but the situation at the moment is dark, is it not? >> absolutely. 96 hours, what the summers. rated for endurance. they are getting very close to that limit. if they've got a smart and savvy crew leader, people start going to sleep as much as they could, reduce their movement, they might be able to exceed 96 hours by dozens of hours but we are not talking about days that they could extend it. stuart: how could they -- does the submersible have to go to the surface? or is there some way of getting them out of the submersible at 12,000 feet and bringing them
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up? >> based on the design it will require bringing into the surface in likelihood if they find it and it is in a situation where they can attach a cable as mentioned earlier and bring it to the surface, probably the most rapid way to do it. they are down 13,000 feet or more. it will take some time to get that vessel up. probably took going 300 feet a minute, 45 minutes to get to the depth the titanic was at. it would gives a sense of how long to take once you find it and attach a cable and get them to the surface, getting into a period where power is back. stuart: thanks very much for sharing your expertise this morning, very dark situation. thank you. complete change of subject. we talked about how tipping is out of control. who tips the most?
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who tips the least? we have a report that may surprise you. new york state making millions of legal marijuana sales but the state is falling well below its projected 56 know you dollars in revenue. what is the problem? i know this story, madison alworth has the story, we will reveal all after this. ♪ there are some things that go better... together. hey! like your workplace benefits... and retirement savings. with voya, considering all your financial choices together... can help you be better prepared for unexpected events. for a brighter financial future. thanks.
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stuart: new york governor hochul says her state was going to take and $56 million in tax revenue from legal marijuana sales. madison alworth has the story. i know why she is way off. it was right outside the door here. that is the problem. isn't it? >> reporter: that is absolutely correct. i hear from all the experts, no
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surprise, thousands of illegal shops, you walk through the streets of new york, there are only 15 license dispensaries. in new york city, only 8 in front of one of the 8 that are here in the city filled with 8 million people. the estimate of the number of illegal shops around 1400. that number is probably closer to 8000 shops in new york city alone. take a listen. >> the state has been working at a rate of 2.5 shops opening per month. that's not enough. if you compare that to enforcement, we've done 16 shops in two weeks, not enough. >> reporter: looking at 8,700 illegal shops in new york city,
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just 8 legal dispensaries so when you look at tax revenue, paul-henri-nargeolet -- hochul was hoping for more. she believes tax revenue will be close to 13 to 20 million. that is 30 million short of what the state was estimating. with the slow roll that has been happening preference has been given to people who have interactions with the justice system because of marijuana use. there's the social component of legalization. while experts do support the framework, the consensus is things are moving too slowly and we are losing so much money. >> there are some noble goals we are pursuing with of this and i don't think they have to abandon those. at the least there has to be big enough regulatory system to capture it and that is hundreds, not dozens. >> reporter: let's talk money again. $20 million in tax revenue is
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not enough to cover the office of cannabis management, the office that oversees this rollout, their budget for the year $64 million. doesn't add up. stuart: gross incompetence. see you again soon. here's the story i find incredible. restaurants in new york could face new fines for handing out things like utensils for takeout orders. why? lauren: because they are -- the restaurant or the takeout company could be fined $50-$250 if they send you your takeout order with a plastic spoon or knife or soy sauce or catch-up and you didn't request it. you can request it and it is fine but how are they going to know? how do you police something like that? there was a bill called skip the stuff in the name of climate change and it takes effect next july. you have been warned. all this time to change your
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habits and maybe they won't have to police them yet but we carry your bags when we go to the food store. we went bring your own knife and spoon. and you have to request it but how do you police that. stuart: a new study that reveals which generation is the stingy us when it comes to tipping. it's not me? lauren: jan z being teenagers, these numbers are really upsetting. 35% of jen's the tip ada restaurant, 1/4 tip at the hair salon. those are the places you are supposed to tip because the person working there doesn't make minimum wage. here's what boomers tip, 83% 70% prospectively according to bank rates. that is you. only 70% of view tipping at the hair salon.
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stuart: we are watching at this moment. lauren: we are inundated with tipping everybody and with stopped tipping altogether. people who rely on those tips performing a service aren't getting what they used to. stuart: president biden says a chinese spy craft that was shot down is an embarrassment for dictators, biden is calling xi jinping a dictator, china calls that a provocation. the full story coming up for you. we hear the white house is working on a new iran nuclear deal. wait until you hear the terms. morgan ortagus will join us. i guarantee morgan ortagus will be outraged. we will be back. ♪ ese straps are mind-blowing! they collect hundreds of data points like hrv and rem sleep, so you know all you need for recovery. and you are? i'm an investor...in invesco qqq,
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from the wall street journal, the plan according to multiple reports is for iran to agree not to enrich its uranium close to the 90% level needed for weaponization. in exchange for sanctions relief and other assistance. morgan ortagus joins me now. why are we still trying to do a nuclear deal with iran? >> no idea. this is brought to you by the biden administration but the players are the same players that negotiated the iran nuclear agreement in 2015. that deal did not stop iran. it gave iran $90 million in sanctions relief, did not stop them building ballistic missiles or funding terrorism around the region or curb their behavior. one thing that's important about the deal, the people who negotiated it stopped iran from getting nuclear weapon, not
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true, it delayed them, kicked the can down the road at best but there were a sunset provision so iran would be able to obtain a nuclear weapon so what happened? during the trump administration we pulled out because of all the things i just said that it wasn't stopping iran's behavior. now for the past two years the iran envoy has chased the uranian's around the globe begging them to meet and negotiate, gave them all the leverage in the world, we were pursuing the maximum economic pressure campaign against them. we took their queen off of the chessboard and they have nothing to show for the last two years so they are trying to do this unwritten deal which is nothing but giving billions of dollars in sanctions relief to iran. they are trying once again to bypass congress. stuart: there on hezbollah and as much as they can.
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next one. president biden called xi xinping a dictator. it happened at a fundraising event in california, the president said xi was upset when the us military shot down a suspected spy balloon. that's a great embarrassment for dictators. sounds to me like the president is trying to take a hard-line, because we don't support independence for taiwan. lauren: the president and his team's policies related to china is all over the map. you have janet yellen, treasury secretary saying we should not decouple how dangerous and how risky it would be and she's clearly one of the points of the meeting was to get the economic people, the treasury secretary, the trade ambassador and others to start talking again and negotiating with china so president biden will often talk tough and say things
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like we are going to fight for taiwan which is not us policy so he likes to say tough things but the actions of his administration don't make sense. what price did the chinese pay for spy balloon? it got shut down but only after it had traversed the united states and completed its mission. other than that there hasn't been anything publicly we have seen. he begged and went to china and invited to have meetings. stuart: i'm searching for a foreign policy suspects -- success and i can't find one. british prime minister sunak holding a conference on ukraine as recovery. blinken is there. we will provide one. $3 million more to rebuild it. my question is who should be paying to rebuild ukraine? lauren: the europeans, it is there continent, the russians, they are started this illegal war and occupation, back to
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crimea, that invasion in 2014. the russians have a lot of culpability here. the united states, we have provided and i'm proud of the aid we've provided to ukraine but we have to focus on our missiles, ammunition capabilities, the things we are going to need if there's a chinese bill terry incursion over taiwan. that doesn't mean we never aid people like the ukrainians. i'm proud of our aid but the people whose continent it is, who are on the ground especially the french and germans should be deeply involved in this reconstruction. why is that? don't know we can trust the french and the germans when it comes to a china fight. who is going to be with us? south korea, vietnam, japan, india, these are the people doubling down as relates to where our energies are focused. stuart: that was a tour they force through the foreign policy war. see you later. what do we have coming up?
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martha maccallum on trump maybe skipping the primary debates. time tiffany on durham testifying today on the trump/russia hoax entity ceo a public square giving bonuses to any employee who has a baby or adopts a child. also this. big tech playing a big role in america's foreign policy. everybody wants them. china wants them to say the indian once them to bring in them in. that's "my take" next.
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