tv Cavuto Coast to Coast FOX Business July 13, 2023 12:00pm-1:00pm EDT
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ashley: in the original book the wonderful wizard of oz, what color was dorothy's shoes? red, blue, black, or silver? very little time. >> it has got to be read. if it isn't it as outrageous. lauren: in the book i will go with silver. ashley: okay, let's get the answer very quickly. the answer is silver. how about that? >> i am litigating. lauren: red is great. neil: it is safe to say the
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government, what is going on that cruise it, more than a few folks are worried about it. it seems both parties have their beef with wild west of investments. both fear things are getting wild, exchange goes going very belly up. is washington capable of figuring this out? more on the republican senator working with a prominent democratic senator to regulate this rogue world. the most powerful financial regulators in the world, wait until you hear what madison alworth is looking at. don't look now but the crypto cavalry has arrived. coast-to-coast has got it all starting right now. welcome, everybody.
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do any of you, those of a certain age, remember this? >> nine most terrifying words in the english language are i am from the government and i am here to help. neil: i love that voice. don't look now but the government is here, when it comes to crypto, it is here to help. sound familiar? depends on your perspective. first 2 madison alworth, the court case might have an impact on bitcoin and crypto and its company. >> reporter: the pre-motion hearing, the largest crypto exchange in the us starts today and this is the first case in a larger scope of government regulators versus crypto. look at coin base with it being the largest exchange everyone is watching. they believe a recent supreme court decision is going to help their case. an argument coin base attorneys
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will make in court today. the sec skirting securities laws operating as securities exchange broker in the agency. coin base and its ceo argued once that was brought that the sec was familiar with the company because it allowed coin base to go public. a process that requires intense scrutiny and government agencies have not agreed on security status of crypto currencies. coin base believe the recent decision to reject the cancellation of student debt could bolster their case. the supreme court decision reinforced a legal doctrine that says government agencies need clear support from congress if they are making a decision of major economic significance. looking at the legal filing from wednesday coin based attorneys when lawmakers haven't set the rule for crypto arguing, quote, far from
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granting the clear congressional authorization required for the sec to exercise such authority congress has recognized it has not delegated such regulatory authority. of the two sides can't come to an agreement this case could drag on for years. it is far from the only sec case. december of last year the sec charge sam bankman-fried to defraud equity investors and ftx trading. suing coin base, the spec, the larger script of exchange. all of this will take years to resolve, impacting the space of crypto. in particular when you look at coin base, this could have a big sentiment impact, the fact the sec is going after the largest crypto exchange in the us is not a confident signal for investors interested in this space. neil: the judge heard both sides.
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thinking about crypto currencies and the market, you in washington, dangerous investment, had a bit exchange going out of business in the case of another one. senators on both sides of the aisle do something about it had a chance to speak with the democratic new york senator kiersten jell-o brand and the republican wyoming senator, talking up the possibility of getting regulation going that works. do you think crypto investments are working. >> this bill is a sweet spot allowing innovation to continue to grow and thrive but also create consumer protection creating know your customer requirements. >> we looked at what went wrong with ftx and other failures and fill those gaps and loopholes,
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we are ready to go. the current regulations are inadequate. neil: ready to go and regulations are inadequate. one of my favorite guests on the show, the bitcoin foundation chairman, you know about that, hollywood star not many years ago. what do you think of washington moving in on a court case, setting up the tableau for this. what do you think? >> there are many parts of washington, different agencies vying for power, whether it is the sec, cftc and these debates have been going on as to who is the right regulatory body to regulate the industry, should a new regulatory body be formed in light of the fact this is putting modern technology, talking about laws in some cases that are nearly 100 years old that predate the internet by a longshot. one thing worth noting that
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happened moments ago, one of the other major crypto currencies, ripple, otherwise known as xrp am a the sec charged a major case going on and xrp won in their case against the sec, this is an incredible event, very important precedent of the sec losing the biggest case that had been running for years, deeming transactions that occurred are not secure which i think is the most important thing as we look at what is happening with coin base. very big deal. neil: that hasn't stopped washington, both parties seemingly united on doing something about this. like their ai involvement, be careful what you wish for, you might get it. what do you think they will come up with. >> hopefully the right thing, bipartisan support in the senate and a new proposal of
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sensible regulation, necessary, i am embarrassed by a lot of things happening in the industry, examples like sam bankman-fried, the list goes on and on, someone who has been a huge advocate for the potential to create a better world, support life, liberty and the pursuit of happiness, as a believer in the fund mental power of this technology, i'm embarrassed by the events that occurred and the bad actors and clearly that brought regulation, the topic of discussion. that brings something that allows america to continue to be the leader, the capital of innovation in the world and natural technology. imagine if the credit card had been invented by china or russia or the internet had been invented. this is important to our collective future. neil: i raised this with a republican and democrat senator, no matter what mechanism, this technology
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doesn't mean the price can be affected by those working abroad. will it do any good? >> that is one of the things we've seen, when the sec had a number of crypto currencies that were burning tokens, really why they selected them. what did hong kong do the next day? hong kong invited all those organizations to effectively relocate in a market that's going to support the things they are doing, recognizing these as legitimate assets, the chinese government saying we don't want this in mainland china but since the us has taken this position we want to be the safe haven to capture and attract all this innovation, all this economic developed and, all the future finance and bring it to hong kong. this is in a global world, the decisions we make will affect the future and it will determine which countries are winners or losers.
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it's very important. i'm glad this is a topic the american people are continuing to listen to and over 10% of the american public has a stake in this, these are single issue voters who care deeply about this, likely going to make their opinions known in the upcoming elections. neil: next time i love you -- i would love to have a talk about the upcoming elections. to come up with an alternative candidate if it is president biden versus donald trump. hope i can get you back to talk about that. since you have been through that. the bitcoin foundation chairman, we go to a lot of crypto investment guys and bitcoin over $30,000 a coin. this is unnerving the markets, the crypto markets, i want to bring your attention to washington where there's a hearing going on featuring john kerry, the president's climate czar. the official business card description.
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business -- i'm the anchor czar. what he's there to talk about is the fact that we've got to do something about climate change, well worth the money and he' s using it as a backdrop for what is happening with the weather which a lot of americans, 100 million, more heat, 120 ° plus expected in phoenix over the weekend. all of this is what is happening with climate change. edward lawrence following these developed at the white house. >> reporter: that is the hot seat for the president's climate czar, john kerry, defendant dollar his flight and all the money he spent in the name of climate change, members of the house foreign relations, he calling the top climate official in the biden administration a hypocrite. >> every time you travel to a climate summit, king charles coronation a wedding of the crime donor's crown prince of jordan, you document emissions generated by your trip, your office failed to do so. you are supposed to produce an organizational chart of your
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office, your office only did so when there was a lawsuit filed, filled and none of the names of the people that work in your office. >> reporter: he has no transparency period. the climate on voice said the russian invasion of ukraine should end because of the effects on the environment. republicans jumped in. >> when you have bombs going off and damage to septic tanks or power centers et cetera you have an enormous release of greenhouse gas, methane, the whole family of greenhouse gases. >> the biggest thing is we are not going to have tanks that are ev, we planned on the battlefield a charger for tesla prior to deploying into war. >> reporter: ukraine, one hundred 80 one thousand casualties since the invasion started, those are real people, not sure president putin worries about the climate but this hearing is very contentious in dc.
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neil: something tells me flattery putin is not interested in the climate. the wholesale side of things, the level at which it -- before it gets to us. a trend where we see inflationary pressures using in the case of retail inflation, at its height. why are we celebrating this? chief market strategist, very smart man, always love that. what do you think of the inflation threat? >> reporter: this is what we thought the fed could engineer easing, all signs of that. another hike or two. i'm still in the camp that we have one more or two more hikes. neil: they are justified but you can't not do it.
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>> they want to make sure. history is the precedence. last time we went through hyperinflation, how to fight inflation if they come back into action. neil: let me ask about that. whatever the fed is doing is working with inflation. safe to say that but you could argue there's a cost to that. the home mortgages, 30 year fixed is 0. 7%. %. my wife and i could have died for that. having said that, that's a joke to a lot of people. >> it will slow the real estate market. think about how many are locked into mortgages in threes and fours. it is not a situation where everyone has to refinance. 3.25.
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the real estate crisis, last time we had five year arms, all those people had to refinance. neil: it narrowed to the point, where do you go? >> some cooling in the real estate market but other areas of the economy are showing resilience. neil: we have the next meeting july 25th, and 26th. what about another one in september? >> after the latest inflation readings i think that's it. the fed pauses longer than people anticipate. strategists were saying rate cuts, there's no rate cuts happening. may be midyear, the fed doesn't stand in the way of elections, they sit back on that. whatever happens with the economy if there's a lagging
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affect they get cuts. jack: nuts. let me ask you about the risk of the fed over doing it. is it better to be cautious? there is the other issue that it could force a slowdown. you are ahead of that. you aren't hearing that but now the world is coming to where you are. a good contrarian investor you are. does that worry you? >> it starts to, whether you are contrary an aura victim. the soft landing, not a protracted recession, that bodes well for small and mid-cap equities, you see inflation coming down, profit margins expand, you have a labor market that is normalizing.
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the contrarian view, the top strategists were saying of the markets are doomed, we had the best six months of the stock market. they pivoted to telling us small and mid caps are not like that. everyone thinks alike, that is where they are wrong next. small and mid caps were traditionally more undervalued and outperform. that's where we see value right now. neil: it is good catching up with you. i will speak to jared bernstein, president, council of economic advisers. the administration is crowing about the administration -- the inflation trend. is that on them? will he will ask for that and tim scott, the president or candidate, special guest on this economy, that he says is not rounding down, that might shock you. we will get to the bottom of that at 4:00 pm eastern time. the latest data. don't know if you had your taxes filled out using h&r
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>> have you used these tax services? when you tend send your tax form online to them, they have and going through it and on to the irs, the refund is on the way if you don't. i assume it's on your way. a way to get to stop by meta which takes all the data, and how that sensitive data in the first place and what we are talking about. the vice president general counsel professor of internet law, you have to be very smart. great to have you. >> thanks from having me back. neil: how did this happen? >> it is relatively benign for
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these websites to put widgets on the back end. they use them for add tracking. most websites have these pixels on their websites, used to promote ads, develop ads and place ads. these software providers put these widgets on their sites from meta-and google, that is where the question begins. why are these tax preparation software companies putting content and services on their website if they don't know what is going to do? we saw the data move off these sites to google, to meta. meta once they receive it, they go ahead and delete it. they don't want that data, they don't want sensitive data and the liability that comes with it. what we need right now is a robust investigation what type of data is moving off of these sites. we do have laws on the books to bring actions for any business that promises to keep data safe
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and secure, that could be enforced by every state attorney general today. that is really what we need to see going forward, investigation why these software companies, tax companies, have these widgets installed and what data was transferred, did they breach promises to keep data safe and secure? neil: guarantee few customers thought the data was leaking out. everyone talked about their own finances. they hope and pray it is just h and r block, tax act folks who have it, go through it, forward it to the irs and it is not going intermediary. i am just wondering how that happens. it might very well be among the fine print items that come up. and trusting this to meta, i don't know. >> that's the concern.
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what this is, a broader and bigger campaign by democrats to push for having the irs do the collection, the tax preparation itself. and send you a bill and then it is in your hands to decide, prove the government wrong. that won't be good for consumers, government has a horrible track record keeping consumer data safe and secure. we talked about how the government, microsoft services were breached by the chinese, the irs lost 700,000 irs reports. in 2021 the irs recognized, dropped files of political enemies they don't like. like jeff bezos. the irs get $80 billion, nobody got fired. when it comes to tax prep companies, they will respond because the market will demand it. the last -- neil: how much of that information is getting out?
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the social security number didn't get out but it did. >> that needs to be investigated. what steps were transmitted? when it was received it was deleted but we need to trust tax prep sites to not lose our data. that's where the ag investigation comes into play. neil: not such great news, glad you expand on it. we have lee zeldin coming on the show. he nearly pulled off a political miracle, the bluest of blue states, almost turned it red. among the big issues, crime, going back to offices, it's panning out exactly how he predicted it would. he will tell us what happens now. ♪ ♪
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>> welcome back to coast to coast at the department of justice. the us secret service has officially closed the investigation into cocaine found in the west wing of the white house after ten days. the substance was found in a bagy july 2nd a few days before independence day. the secret service send the sample to fort dietrich, maryland at a bio facility to make sure there were no bio hazards there and then sent it to the fbi lab in virginia, secret service statement today says no fingerprints were attainable in that sample sent to the fbi lab. secret service putting out a statement after briefing members of congress. i want to read it in part, there was no surveillance video footage found that provided investigative clues or other means for investigators to identify move who may have
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deposited the substance in this area. without physical evidence the investigation will not single out a person of interest from hundreds of individuals who passed through the vestibule where the cocaine was discovered. republicans expressing skepticism about the secret service not finding the culprit in this case. for 500 people go through that area. it was found in a locker where people drop off electronics going into the west wing of the white house. neil: mission over or so we learned. lee zeldin, former congressman, how does this happen. >> haven't been in the white house since long before this. neil: let me take you off that list. >> for a lot of americans they
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reached the point they see investigations that get done. the investigation is getting done, we were in the middle of a actively investigating, and the investigation closes and there is no real closure. this is going to be frustrating for a lot of americans who would like to know there's a process at the white house, people working there, cameras all over the place, tell us something other than the investigation frequently concluded. neil: bag of cocaine is found, not like finding a bag of sugar donuts. it is alarming but it is over. >> if there's a member of secret service at a leadership level who might come to capitol hill, public hearing or private
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briefing took place today so there's an opportunity for questions that again asked and answered maybe there is more questions that get answered, maybe another administration comes in in 2025 and they want to revisit it and look more into it, it is likely there may not be a single person identified as responsible. >> no administration could come in, crime is getting to be a top issue and a lot of urban areas, that may be republicans could make inroads, you pulled off the impossible running in the bluest of blue states, almost tilting it republican. crime was a big issue for you and remains a big issue now. the latest survey shows 60% of new yorkers concerned it could happen again. that is scary. >> it is real and personal.
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when you do a poll you are asking about something that doesn't impact the life of the person you are talking to on the phone but when a voter, when a new yorker is saying they fear they might be the target of a crime attack it could lead to them deciding they want to leave the state. on top of what that means for crime of public safety there's the economic impact, they had their breaking point, it's not just new york but other cities across the country. it's impacting the suburbs. people who live in the suburbs of new york city care about crime, public safety, work in new york city, like to travel into the city, they get their news from a media market that might be based insider city. what we saw in the 2022 election, all of these congressional districts were all republicans getting elected. a lot of these districts were
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districts president biden won and crime was a big issue even in the suburbs. crime outside of atlanta and la, could have a political impact in that dynamic. one other point, a debate over ideas, the push right now is cashless bail, new york is the only state where judges don't have discretion but prosecutors refusing to enforce laws and there are other state capitals and municipalities that look at places like new york and say we need that here. that the bait wherever you are turning into what happened in places like new york or california needs to be the personal level of the local election coming up or national election, got might impact safety and security of my own community, this is a national conversation. neil: before a lot of people,
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back in their building, don't want to misquote you, it's not about covid but the skittishness of returning to a very different city and cities across the country and that has not changed. >> a lot of people have multiple reasons they are hitting that breaking point and covid policies were part of it. some people started looking at the idea of freedom differently. there were people who had to return to a job, something they love, nurse at a local hospital and told you either get the covid vaccine or you are fired. i had covid three weeks ago and i'm told, this johns hopkins study says that if you don't have the covid vaccine but test positive, that you have more coverage and protection than if
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you don't get it and get the shot, cost of living, congestion pricing inside new york, something goes to full effect in 24, if you have to commute through the subway system, if you don't feel safe and you live freer, safer and be more prosperous, new york is leaving and not putting the state in a time out, if you don't get your act together i'm not going to come back, everyday people fleeing saying i am done. neil: the you have a horse in this race? >> this is going to be donald trump versus president biden rematch and i would be supportive of donald trump. neil: would you support any of them, some of the others say they wouldn't support donald trump. if it's not him, would you support the others? >> i will support the republican nominee. i encourage the republican
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field to approach this, hopefully substantive debate with that goal in mind. we have to make sure this is about the future of our country, not just personal pursuit. neil: was that you? >> i started a charity, speeches, staying active. rob: daughter running for senate. >> kristin jell-o brand is a wasted senate see. i disagree with senator schumer on a lot of policy rhetoric but i respect his work ethic. ifc him in my congressional district or state senate district before that a lot, 12 years between the state senate and the house, only once, the weigel brand keeps wishing this into existence, trying to raise money. this is not something i'm thinking about. i would add that new york in a presidential year is tougher than running in a midterm where you have a more democratic
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president. i haven't been spending much time thinking about it. it would be a benefit to new york and this country if we had someone different in that seat. neil: you almost pulled it off. lee zeldin. in the meantime, mark zuckerberg and elon musk, i used to think this is not going to happen, and the professional wrestler. it is on. it is very much on after this. (vo) while you may not be a pediatric surgeon volunteering your topiary talents at a children's hospital — your life is just as unique. your raymond james financial advisor gets to know you, your passions, and the way you give back.
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photoshop, mark zuckerberg with two impressive trainers opening up for the big day. elon musk is doing something similar although there is debate whether he is working out as much but bottom line it occurs at a time when both of these guys have other jobs but luke lloyd is here, challenging both of them to a cage match. he wants to see how they sort it out. >> everyone is going to watch it. neil: don't want to get sidetracked on this which i used to laugh at on but i think it is on. i don't think it's a marketing gimmick. >> can't believe it's. i'm surprised it has gone this far. it might actually happen. i'm offer competition. we talked a couple weeks ago how money was on zuckerberg, you shouldn't trust anything i say, draft kings, i lose every single bet. i'm concerned for elon musk, our national treasure, our protector of 3 speech against
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people like facebook and mark zuckerberg. we can't lose musk. he should keep fighting with his brain and not put his brain at risk, for the sake of humanity and the us, stop see being so selfish. neil: he was saying not long ago we got to pause this ai thing, starting up this company that will be doing all ai stuff go away over my head but i am wondering where we are going with this, talk about this, add it to tesla and everything else and twitter. obviously he's going knee-deep into this. what do you think? >> he's talking about finding the true nature of the universe, we know the answer to the universe, it is 42, from hitchhiker's guide to the galaxy. i don't know if i want to know the true nature of the universe. don't know if humans can comprehend that. that's another conversation. the future is ai. i think ai will change the world for the better and the worse.
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obviously musk is one of the best entrepreneurs ever to be part of the conversation. i'm all for having someone scared of ai at the helm of that innovation. we are forgetting what it means to be human. i've seen this transition my entire life. we live in a world people are defined by their online presence, not their physical presence, their ego is defined by their online presence, trying to make life so simple that we don't need to think anymore, go to work or do work, we are flooded with information, nobody knows what to believe or not believe, what is factual or not factual, ai will make everything i just listed exponentially worse. you know the saying, curiosity killed the cat. don't think there will be a terminator scenario but ai takes away the aspects of what it means to be human and elon musk and his influence will help tame the bad that ai can do. neil: to take advantage of this ai interest, what do you think? >> say it again.
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neil: two quick bets to take advantage of this ai interest. >> two quick bets. i think emr right now, going through out a nation, i think you want to play that here. the ai hype is overvalued in the market. we've seen the expansion through ai. toward the end of a rate hike, short-term imagine taking advantage by owning large duration bonds. as we get hold of the economy and possible recession we talk about actually happens. we 20 that is pretty clever, see if this does happen. luke lloyd, i hear you. i want to go to brian with a look at a cage match with jerome powell, the details of that, a preview of "the big money show". brian: the government crackdown
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on the free market getting in the way of capitalism plus the growing homelessness crisis in blue cities coming up at the top of the hour. more coast-to-coast after this. i'm so glad we did this. i'm so glad we did this. i'm so glad we did this. i'm so... ...glad we did this. [kid plays drums] life is for living. let's partner for all of it. i'm so glad we did this. edward jones this is your summer to smile. to raise your glass and reconnect. to reel in the fun and savor every bite. to help you get ready your aspen dental team is celebrating 25 years of affordable care with an epic summer of smiles event. don't miss enjoying a moment, with our onsite labs to help you, fast, and 20% off your denture care. so, whether you need a new look or a quick fix, you can celebrate with a smile all season—
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the issue of ukraine at nato never ship came up, nato countries are divided on this. the president saying now is not the time to consider as the country is in the middle of the war. kurt volcker, us ambassador to nato, what do you think? no right now, that's what the message is. >> he keeps saying that and that is not the question being asked. no one is saying nato should take in ukraine right now. that with me nato going to war with russia. a lot of people are saying they need to send a signal to vladimir putin that ukraine will become a member of nato as soon as it is practical to bring them in. this is a way of signaling to vladimir putin that he can never win the war in ukraine. at the end of the day we will secure the future again and there won't be space for future wars. that is missing here. not that they join today but we
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have to signal that tomorrow -- neil: when you make it so unequivocal, not in so many wars, that is not happening, with that behoove vladimir putin to drag this out? >> i agree with that. we don't know what the war looks like or if vladimir putin's forces are defeated or there's political change in moscow or stable cease-fire on the ground, which is why we come up with something to keep the decision-making in our own hands when practical. not when russia decides it is coming up. neil: does vladimir putin need a few protesters? his own security isn't that. >> he's got to be worried. this prigozhin revolt a few weeks ago exposed a lot of
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weakness in the regime. not just the fact that prigozhin letter military force into russia to take over two cities and military bases, a lot of support from the military and the public as well. this is now a conundrum for vladimir putin. his instinct is to kill prigozhin, but that could spark a bigger blowback and he ended up meeting with him at the kremlin which is very strange after he leads a rebellion. he's fully in control again. you know about the writers strike, get ready for the actors strike. that strikes out anything happening on tv or movies this fall after this. megawatts of power, rails and open road, and essential services of every kind. all running on countless invisible networks,
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recommendation to go on strike. that vote will come in the next couple hours and there will be press conference afterwards at which they will accuse the studios of not doing enough to give actors enough streaming revenue from the new streaming giants and the programming that is now dominating much of what we see. they will be joining writers, there are concerns about future use of ai in movie and tv show production. the strike will be the first since 1960, screen actors, 63 years ago, was ronald reagan. now they go out with the writers. neil: hopefully they can settle all this. to my friend brian brumberg. brian: hello, everyone. brian: i'm brian brenberg. jackie: i'm jackie deangelis. taylor
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