this hour, i'll speak with former defense secretary leon panetta. >>> first, let's go to the southern border. nick, the inspector general for the department of homeland security has just issued an urgent new report. >> reporter: the new office paints a grim picture for migrants in custody. things are so bad it prevents a health risk to the safety of not just the agents but also the migrants in custody. new images from the dhs office of the inspector general show what one official calls a ticking time bomb in a new report obtained by cnn. dozens of migrants cracked. some with barely enough room the lie on the concrete. about 30% of minors held longer than the 72 hours allowed. some children held for two weeks. >> we have been speaking to the over crowding that our facilities never designed to deal with the volume of mie gra -- migrants coming our way. >> reporter: now they are under investigation over this closed facebook group made ov,0f thouss of border patrol agents. according to the site, members shared lewd and sexist content about latina members of congress

that's not sitting well with former defense secretary leon panetta. >> if the president does -- the president does a great deal of harm by politicizing this event, i think the military, frankly, we have always taken the position, those of us that have been involved with the military, that we don't have to display our power to anybody. we're the strongest military power on the face of the earth. we don't have to roll tanks down the street. we don't have to roll troops down the street because we know that we are strong, and we can take on any enemy. >> 900 members of the d.c. national guard have been called up to help with traffic control and security. that's nearly triple the typical guard activation for the event. overnight the pentagon began delivering a pair of m-1 abrams tanks to the national mall for a small stationary display of american military might. cnn's barbara starr with more from the pentagon. >> reporter: it will be a very different event for the u.s. military which generally has not participated in national july 4th events. expect to see the chairman of the joint chiefs general

leon panetta. look at some of the cheap shots taken by republicans today during the hearings, and they were cheap. you're watching "hardball." ♪ l look limu. a civilian buying a new car. let's go. limu's right. liberty mutual can save you money by customizing your car insurance, so you only pay for what you need. oh... yeah, i've been a customer for years. huh... only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ would shakespeare have chosen just "some pens?"s. methinks a tul pen would serve m'lady well. thanks! and a unicorn notebook! get everything on your list. this week's doorbuster - notebooks for 10¢, 10¢ in store or online from the advisors at office depot officemax. over time, you go noseblind to the odors in your home. (background music) but others smell this... (upbeat music) that's why febreze plug has two alternating scents and eliminate odors for 1200 hours. ♪breathe happy febreze... ♪la la la la la. with advil liqui-gels, what stiff joints? what bad back? advil is...

joining us now, former defense secretary leon panetta. he was chief of staff at the clinton white house as well. thanks so much for joining us. we have a lot to discuss but first let me get your reaction to the condition of the border facilities. who shoulders the blame for this awful situation. you saw what the department of homeland inspector general released today. >> there's no question here that the responsibility belongs to the administration and particularly the department of homeland security that has the responsibility for overseeing these facilities. they have been caught totally unprepa unprepared. it's been a hit and miss operation. the whole issue at the border has been an administrative nightmare and innocent people are paying the price for what i think has been an irresponsible approach to administering our laws and our immigration process. >> when you see these dangerous overcrowding situations develop, lack of access, for example, to clean water and showers. kids going without medical care. even warm meals. how does that

leon panetta is former cia director and joins me now. how do we dial this down?s to dial it down? >> well, unfortunately, right now both sides are engaged in the same game of poking each other and trying to see if the other side is going to blink. i don't think that's going to happen. the united states is not going to suddenly embrace the nuclear agreement, and iran is not going to change its ways. so the only danger here is one of miscalculation that could lead to war. i think the alternatives here are not very good. obviously, one alternative is war. i don't think either side wants it. the other alternative is to continue the stalemate that's poking at each other. the problem is that that, too, can lead to war. i think there's only one alternative, which is negotiation. that is the area that, frnk frankly, both sides ought to be focusing on. >> zarif in new york, meeting with reporters, offered negotiations but the price, precondition was very tough, which would have been lifting sanctions permanently. but was that a signal? john mclaughlin, former acting direc

starr, thank you. >>> joining subcommittee former defense secretary under president obama leon leon panettaa. thank you so much for being with us. and will you just tell us what is the absolute worst case scenario with iran and is america actually ready to deal with it? >> we're involved in a very dangerous game right now. and both sides are poking at each other, waiting to see whether the other side blinks. and the reality is neither side is going to blink. we're not going to get iran to suddenly change their ways, and the united states isn't going to lift sanctions or suddenly become a partner in the nuclear agreement again. so they're both poking at each other. and the problem is that the more these tensions increase, the greater the danger that some kind of miscoalculation is goin to take place. there's a lot of pressure as a result of i'm sure a high level of alert that is taking place in the persian gulf, and the higher that alert, the more the chances are that some kind of miscalculation will lead to some kind of military confrontation. i think that's the reality. >> you have said th

>> look, leon panetta is a thoughtful and judicial in this thinking. usly experienced public serva servant. i think the most important thing panetta said here was the utter breakdown of the national security process. it is simply astonishing. still not confirmed. series of acting secretaries and no one understands what pompeo who is an intelligent person, is up to. there is no set of options that are carefully considered and no inclusion of other u.s. forms of power other than military and no outreach to allies to act in concert with us. this is all mr. trump's impulse of tweeting. >> what is your level of concern, general? >> i think lower than we might think because war makes no sense to anyone including the iranians and to mr. trump. so the end of the day, i think the iranians are seeing how far they can push mr. trump and how far they can push the saudis to try to break the oil embargo. i don't think it will work. at some point both sides have to conclude it is better to talk, probably confidential alley, to find a way out of the situation. there a

leon panetta joins the show with his thoughts on china, iran, and the democratic presidential race. this is bloomberg. ♪ david: from bloomberg world headquarters in new york, i'm david westin. welcome to "balance of power," where the world of politics meets the world of business. today, maria tadeo from frankfurt on ecb president draghi threading the needle between hawks and doves. the departure of the puerto rican governor, and jessica roth on what to take away from the robert mueller hearings. let's go to maria in frankfurt. when i first heard the statement i thought this would be dovish because they will consider everything, but then the market said not so much. maria: that was exactly what the market was telling us. mario draghi said we will go lower. he did not cut today but it was clear that will be the next move from the ecb. that statement also read is not just rates. we can look at anything. we can look at qe2. we can look at the tiering system, which many will tell you is a good thing, but it was a lacl

we talk about that to former defense secretary leon panetta. that's next. this is bloomberg.is bloomberg. david: you are watching "balance of power." i'm david westin. spent decadesas in government, and joined is now for today's conversation. thank you so much for being back with us. leon: good to be with you, david. david: let's start with the news from overnight, president trump has vetoed legislation out of congress that would have curtailed u.s. arms sales to saudi arabia and the united arab emirates. this is tied to the could shoji murder as well -- the shoji -- k hashoggi murder. this?s your opinion on thesewhen it comes to kinds of issues, very frankly, it would serve the administration to try to sit down with the leadership in the congress and try to work out an approach to these issues. i think there is concern, shoggi and about kha what happened there, and the war in yemen. we obviously have a relationship with the saudi's. i think it is important for the tosident and the leadership decide, what should we ask the to address those two issues so we do not just walk aw

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leon panetta didn't know a lot about intel. he can learn the business, john.uestion is whether he comes in with an agenda. that's going to make people nervous. >> kirsten, this is from "the new york times" about how some of the lawmakers feel. some republicans privately express concern including richard burr of north carolina who cautioned the president's advisers that he considered mr. ratcliffe too political for the post. mr. trump disregarded that warning. >> mr. trump wants a loyalist to him. i don't think he's interested in people with experience. i think dan coats was an extreme mismatch, to say the least, for donald trump. this is somebody who helped craft george w. bush's conservative agenda. it's the polar opposite of donald trump. when donald trump came in, he was looking for legitimacy on his presidency. because he didn't have experience in washington. i think now he feels very comfortable where he is and he doesn't think he needs that anymore and he just wants yes men. and are being extremely partisan. >> john ratcliffe's experience, he worked as a

perspective now from leon panetta who served as cia director in the obama administration and chief of staff to president bill clinton. secretary panetta, we usually see military parades from north korea, russia, china, authoritarian regimes not only sending a message to the world but also perhaps to their own people about how tough their regime itself is. is this the right thing to do in the united states, having tanks and flyovers? >> i don't think it is in keeping with what our country is all about. we're the strongest military power on the face of the earth. and we have never had to display that power to the world in order to prove it. we know who we are. we know our strengths. and very frankly, our view has always been that we should appreciate our liberties and our freedoms, because in a democracy, the most important thing is that we protect the values that our country is all about. that doesn't mean we have to roll tanks down the street or roll troops down the street, because we know who we are. we appreciate those that serve. but most importantly, we are all part of one family

after he was a congressman and politician, leon panetta was also the head of cia after he was a politician. but they demonstrated they understood the importance of the truth to power. whether it was gerald ford or president obama for panetta. i have no sense that trump is looking for someone to speak truth to him about all of these challenges around the globe that threaten our national security. mr. ratcliffe does not give me any confidence that you will that he can direct the men or women of the intelligence committee to do what they knee to do at this troubling time. i'm hoping the republicans and the democrats in the senate are going to give this domination nomination very, very rigorous scrutiny. they deserve to have someone who can carry out duties with responsibility and with integrity and with truthfulness. that is not what donald trump is looking for. >> stand back and talk more bradley about the state of national security in the u.s. right now. not just the change in dni but something that could be updated more thoroughly. the role has obviously changed. the way intelligence agenc

when jeremy and i both worked for leon panetta, when he was sengd, something prevalent in your mind aboutattis. i also saw other things that were powerful because she didn't just say this is vile as we heard in that interview. she said, i have had that said about me. and she looked at the rest of the room and said how many of you have heard that said about you? there were a lot of hands raised. she's like i see even more hands in the back. it makes you feel that's the value of her experience to show not just you can call it out but also have people in the country -- that's a teachable moment, having people in the country understand what that feels like for a fellow american feel obviously what the president is doing bring it's to a new low. >> i think the key here is three out of the four members of congress were born in the united states. what that tells us what donald trump was saying goes to the core of what is at the heart of white supremacy, which is the idea that nonwhite people, and specifically black people, cannot be american citizens. that is as old as this country, if not older

but in all seriousness leon panetta said both sides this week so easily agreeing to fiscal defeat isn'ttisanship, it is broken -- is he right? >> i'm not going to deny it. >> i think you guys have a lot of work to do on this front. i appreciate your candor and you being here. >> pretty straightforward there. not going to deny pit. broken government. >>> well, the president loves to tout the economy is the best ever in the history of the country. but a new sign today that in fact it's slowing down. [ alarm beeping ] wake up! there's a lot that needs to get done today. small things. big things. too hard to do alone things. day after day, you need to get it all done. and here to listen and help you through it all is bank of america. with the expertise and know-how you need to reach that blissful state of done-ness. so let's get after it. ♪ everything is all right what would you like the power to do?® ♪ all right introducing zero account fees for brokerage accounts. and zero minimums to open an account. at fidelity, those zeros really add up. ♪ maybe i'll win, saved by zero ♪ has been excel

leon panetta, the former secretary of defense for president obama has worked with judge phipps in the past and has great things to say about his, quote, legal acumen, dedication, attention to detail, and integrity. he says i believe that peter will serve with honor and highly recommend his confirmation. that's president obama's secretary of defense. given all this, it's hardly surprising when judge phipps was first nominated to serve as district judge for the western district of pennsylvania, the senate confirmed him on a voice vote. this body saw what everybody else had seen, an impressively qualified intellectual individual who understands the job of a judge. so i'm sorry that this nominee who earn add voice vote to his current position will require a cloture vote this afternoon but nevertheless i look forward to voting his nomination today and voting to confirm later in the week and i would urge our colleagues to join me. following that nomination, the senate will tend to another of this body's unique responsibility, the ratification of treaties. for the better part of the last cen