‘THIS IS THE DIRTY SECRET’: Bessent reveals why the government shutdown is dragging on

‘THIS IS THE DIRTY SECRET’: Bessent reveals why the government shutdown is dragging on

TALKING TO THE ISRAELI PARLIAMENT. I AM SITTING NOW WITH TREASURY SECRETARY SCOTT BESSENT WITH REACTION HERE. SECRETARY I WILL TELL YOU EVERYTHING SEEM SO SMALL WHEN YOU CONSIDER WHAT PRESIDENT TRUMP HAS ACHIEVED HERE IN TERMS OF GETTING THE HOSTAGES BACK HOME AND PEACE IN THE MIDDLE EAST, YOUR REACTION TO WHAT PRESIDENT TRUMP IS SAYING THIS MORNING. >> MARIA IS AN INCREDIBLE MOMENT FOR THE PEOPLE OF ISRAEL, THE ENTIRE MIDDLE EAST AND FOR THE AMERICAN PEOPLE. WE SHOULD BE SO PROUD OF WHAT PRESIDENT TRUMP HAS DONE IN THE FORCE FOR GOOD IN THE WORLD THAT IS THE UNITED STATES ECONOMIC LEADERSHIP AND MILITARY LEADERSHIP IN THE. [CROWD BOOS] LEADERSHIP IS AN INCREDIBLE MOMENT, I WILL TAKE YOU BACK TO LAST WEEK AND YOU AND I WERE TALKING EARLIER ABOUT THE CHINESE EXPORTS CONTROLLED AND WE HAVE APPROACH TO A RELATIONSHIP WHICH I DID WITH GREAT RESPECT, THE CHINESE ARE VERY BIG ON SYMBOLISM AND I TELL YOU IT WAS HIGHLY INAPPROPRIATE FOR THEM TO ANNOUNCE EXPORT CONTROLS ON THE DAY THAT THE PEACE DEAL WAS ANNOUNCED AND OVERSHADOW THAT. MARIA: I’M WONDERING IF THAT WAS BY DESIGN. THE CHINESE GOVERNMENT DOES NOT DO ANYTHING BY COINCIDENCE. THE FACT THAT PRESIDENT TRUMP HAS CLINCHED THIS INCREDIBLE PEACE DEAL AND THEY COME OUT IN THE MIDDLE OF ALL OF THIS LAST WEEK ON THURSDAY NIGHT AND SAY WE WILL BE TIGHTENING OUR RESTRICTIONS ON RARE EARTH MINERALS KNOWING THIS IS ONE OF THE CRUXES OF THE FIGHT BETWEEN THE TWO NATIONS. IT DOES NOT SEEM COINCIDENTAL TO ME. YOUR THOUGHTS. >> IT COULD’VE BEEN FOR SEVERAL REASONS, ONE THE CHINESE ECONOMY IS DOING VERY POORLY AND MAYBE THEY’RE TRYING TO TAKE FOCUS OF THAT. TWO, CHINA AS OPPOSED TO THE UNITED STATES THE UNITED STATES IS PUSHING FOR PEACE IN THE WORLD CHINA IS FINANCING MORE AND CHINA PURCHASE UNDER PURCHASES RUSSIAN OIL AND FINANCING THE RUSSIAN WAR MACHINE AND THEY PURCHASED IRANIAN OIL AND WE HAVE BEEN CALLING THEM OUT ON THAT AND MAYBE IT WAS TO DISTRACT FROM THAT AND MAYBE IT WAS A MISTAKE AND ATTEMPT TO GAIN LEVERAGE BEFORE THE TWO LEADERS MEET IN KOREA AND OCTOBER AND I TELL YOU TRIED TO GET LEVERAGE IN FRONT OF A MEETING WITH DONALD TRUMP IS A BAD IDEA AND HE TURNED THE TABLES WITH THE TWO GOOD TWEETS ON FRIDAY TALKING ABOUT RAISING TARIFFS AND IMPLEMENTING ANY SANCTIONS THAT WE NEED TO. IT WAS A MISCALCULATION BUT WE ARE COMMUNICATING NOW. I’M CONFIDENT WE CAN MOVE FORWARD. MARIA: WHAT DOES THAT LOOK LIKE ARE YOU SAYING THE MEETING BETWEEN XI JINPING AND PRESIDENT TRUMP IS STILL ON AND YOU’RE GOING TO WAIT TO IMPLEMENT ANY OF THE SHARPER TARIFFS THAT YOU DISCUSSED HERE ONE 100% TARIFF ON CHINESE IMPORTS UNTIL AFTER THAT MEETING ON NOVEMBER 1? >> YES THAT IS THE SIGNAL THE PRESIDENT HAS GIVEN. HE DID SAY IN HIS TRUTH POST THAT HE COULD ALWAYS PULL IT FORWARD BUT THE IDEA IS TO GIVE THEM TIME TO MEET AND TALK THIS OUT, THE VERY GOOD RELATIONSHIP AND I BELIEVE THE PRESIDENT THANKS THIS MAY HAVE BEEN FROM A LOWER LEVEL OFFICIAL, THE CHINESE SYSTEM IS QUITE BRITTLE SO THIS MAN CAME FROM XI JINPING HIMSELF AND COME FROM A CHINESE HARDLINER THEY HAVE HARDLINERS ON THEIR SIDE TO AND WERE ALWAYS TRYING TO UNDERMINE THE RELATIONSHIP. MARIA: INTERESTING, WE ENTER THE THIRD WEEK OF THE GOVERNMENT SHUTDOWN AGAIN. IT SEEMS VERY, VERY SMALL COMPARED TO WHAT WE’RE HEARING FROM OUR COMMANDER-IN-CHIEF THIS MORNING. I WANT TO GET YOUR TAKE ON WHAT THIS IS HAPPENING, THE SMITHSONIAN MUSEUM, THE NATIONAL ZOO, ALL TEMPORARILY CLOSING YESTERDAY. FEDERAL EMPLOYEES RECEIVING NOTICES THEY WILL BE LAID OFF IN 60 DAYS. MY SOURCES ARE TELLING ME THE WHOLE REASON THAT THE DEMOCRATS ARE DOING THIS IS BECAUSE THEY WANT TO BE THERE FOR NEXT WEEKENDS NO KINGS MARCH IN WASHINGTON WHERE YOU WILL SEE THE ACTIVISTS MARCH IN WASHINGTON THIS COMING SATURDAY, ONE SENATOR TOLD ME THAT THE GROUPS ARE THREATENING MINORITY LEADER SCHUMER TELLING HIM HE BETTER DO THIS AND KEEP THE GOVERNMENT CLOSED OR WE WILL MAKE YOU IRRELEVANT. DO YOU BELIEVE THAT IS WHAT THIS IS ABOUT, MORE THEATRICS THAN REALLY ANY MARRIAGE TO THE OBAMACARE SUBSIDIES? >> MARIA, THE AMERICAN PEOPLE ARE BEING HELD HOSTAGE BY CHUCK SCHUMER’S POLL NUMBERS WHY DID HE GO WITH A CLEAN CR IN THE SPRING, WHAT IS CHANGE THE POLL NUMBERS VERSUS AOC HAVE COLLAPSED AND IF IN FACT THEY ARE WAITING FOR THE NO KINGS PROTEST, NO KINGS MEANS NO PAYCHECKS NO PAYCHECKS AND NO GOVERNMENT. I THINK THE DIRTY SECRET FOR WHY THIS HAS DRAGGED ON FOR SO LONG AS THE DEMOCRATIC FRIENDS IN THE MAINSTREAM MEDIA HAVE BEEN DOWNPLAYING THE SHUTDOWN AND THIS IS GETTING SERIOUS, IS STARTING TO AFFECT THE REAL ECONOMY AND IS STARTING TO AFFECT PEOPLE’S LIVES AND IF THIS WERE THE REPUBLICANS WHO WERE ENGINEERING THE SHUTDOWN AND MAKE NO MISTAKE, MIKE JOHNSON, SPEAKER JOHN SAID IN THE HOUSE PASSED A CLEAN CR, LEADER THUNE CALLS ABOUT EVERY NIGHT AND THREE DEMOCRATS ACROSS THE AISLE, JOHN FETTERMAN I BELIEVE WAS ON YOUR SHOW YESTERDAY AND SATURDAY FETTERMAN SAID WE GOTTA REOPEN THE GOVERNMENT. WE NEED A FEW MORE DEMOCRATS TO GET AWAY FROM THE RADICALIZED LEFT BUT CLEARLY THAT IS THE WING THAT’S TAKEN OVER THE PARTY AND THEY HAVE BEEN UNABLE TO STOP PRESIDENT TRUMP IN THE COURTS AND IN THE MEDIA SO ANOTHER USING THE GOVERNMENT SHUTDOWN TO STOP HIS INITIATIVES. PRESIDENT TRUMP IS DOING PEACE DEALS, TRADE DEALS AND TAX DEALS, THE MAINSTREAM MEDIA REFUSES TO RESPOND TO HOW SERIOUS THE SITUATION IS THEY DON’T WANT TO EMBARRASS THE DEMOCRATS, THIS IS A REPUBLICAN SHUTDOWN AND THIS WOULD SOUND LIKE IT’S THE END OF THE WORLD. MARIA: ONE OF MY SOURCES TOLD ME THEY HAVE HUGE IPOS THAT THEY WANT TO TAKE AND GO FORWARD WITH THEY HAVE DEALS THAT THERE WAITING TO TAKE PUBLIC AND THEY CAN’T DO ANY FILINGS BECAUSE THE SECURITY AND EXCHANGE COMMISSION IS CLOSED. AT SOME POINT THIS BECOMES A SERIOUS NATIONAL SECURITY ISSUE DOES IT NOT AN ECONOMIC ISSUE FOR AMERICA. >> IS A SECURITY ISSUE AN ECONOMIC ISSUE. THIS ADMINISTRATION WANTS TO DO SOMETHING FOR FARMERS CHINA HAS CHOSEN TO DECOUPLE ON THE AGGIE SIDE WHICH TELLS YOU THE OTHER THING THAT PRESIDENT TRUMP AND EVERYONE IN THE CABINET IS WORKING ON HIS FOOD SECURITY BUT THE CHINESE HAVE UNFORTUNATELY TURNED OUR SOYBEAN FARMERS INTO PONDS IN THE TRYING TO MANIPULATE THEM AND OUR FARMERS OVERWHELMINGLY BACK PRESIDENT TRUMP, THEY KNOW HE HAS THEIR BACK AND WE CANNOT IMPLEMENT THE PROGRAMS THAT WE WANT TO STABILIZE THE FINANCES WE WANT TO USE A FARM CREDIT BUREAU TO GIVE THEM THE CREDIT FOR NEXT YEAR’S PLANTINGS BUT THEY WANT TO CATER TO THE RADICAL LEFT AS I CALLED THEM TWO GUYS FROM BROOKLYN SCHUMER AND JEFFREY SAITO CARE ABOUT THE FARMERS ALL THEY CARE ABOUT IS THEIR JOBS. I READ ABOUT THE OTHER DAY ONE OF THE HARD LEFT NEW YORK CITY COUNCILMAN MADE PRIMARY AND THEY REPRESENTED IN JEFFREY’S. WHAT A MESS. MARIA: AGAIN IT’S ABSOLUTELY SHAMEFUL AS WE WATCH PRESIDENT TRUMP IN JERUSALEM TO THE ISRAELI PARLIAMENT WE HAVE THE TWO SENATORS TELLING ME WHAT THIS IS REALLY ABOUT AND THE DEMOCRATS ARE WANTING THE SHUTDOWN TO CONTINUE SO THEY CAN SHOW THAT THEY QUOTE UNQUOTE.TRUMP AND FOUGHT FROM BY BEING PART OF THIS NO KINGS RALLY WHICH IS PLANED ON SATURDAY IN WASHINGTON NEXT WEEK HERE’S BILL HAGERTY AND JOHN FETTERMAN FROM PENNSYLVANIA. WATCHES. >> CHUCK SCHUMER IS WAITING ON HERE WITH A BIG MARGIN WASHINGTON TAKES PLACE, THE NO KINGS MARCH THIS WAY HE CAN APPEASE THE RADICAL LEFT AND WILLING TO FIGHT TRUMP TO EVERY END NO MATTER WHAT HAPPENS TO AMERICAN PUBLIC IS WILLING TO SACRIFICE ALL OF THAT FOR HIS OWN POLITICAL CAREER. MARIA: YOU THINK THIS IS POLITICAL AND HE WANTS TO GO ON THE NO KINGS RALLY AND STOMP HIS CHEST AND SAY I’M FIGHTING TRUMP REGARDLESS OF WHAT’S HAPPENING WITH CITIZENS THAT ARE KNOCKING PAID. >> YOU SUMMED IT UP THAT’S AN EXCELLENT SUMMARY, THIS IS ALL ABOUT POLITICS CHUCK SCHUMER’S POLITICAL FUTURE. >> IS NOT ABOUT WHO’S LOSING OR GETTING MORE OF THE BLAME OR ANYTHING AND FOR ME WHAT I REALLY CARE ABOUT, A RESPONSIBILITY ME AS A U.S. SENATOR TO VOTE TO MAKE SURE TO KEEP OUR GOVERNMENT OPEN AND WE CAN FIGURE ALL THE OTHER PRIORITIES THAT’S DEMOCRACY THAT’S DEMOCRACY SHUTTING OUR GOVERNMENT DOWN THAT’S THE WRONG MESSAGE FOR THE WORLD FOR AMERICANS. MARIA: SECRETARY, I KNOW PRESIDENT TRUMP IS ALSO DEALING WITH THIS AND YOU’VE MADE PLANS TO ENSURE THAT THE MILITARY DOES GET PAID. WHERE DOES THAT MONEY COME FROM IS THIS TARIFF REVENUE. HOW WILL YOU MANIPULATE THE MONEY SO OUR MILITARY DOESN’T MISS A PAYCHECK ON OCTOBER 15. >> AS VICE PRESIDENT VANCE SAID ON YOUR SHOW WE HAVE TO PRIORITIZE PAYMENTS SO WERE HAVING TO HOLD BACK ON SOME PAYMENTS SO THE BRAVE MEN AND WOMEN IN THE U.S. MILITARY CAN GET PAID SO WE HAVE TO SHUFFLE THINGS AROUND WE HAVE TO FURLOUGH WORKERS HERE IN D.C. AND AROUND THE COUNTRY. WE HAD FRIENDS VISITING FROM MY HOMETOWN THEY HAD TO RUN TO THE ZOO IN D.C. ON SATURDAY BECAUSE NOW IT’S CLOSE DOWN, NOTHING IS OPEN AND THE DEMOCRATS THAT LIKE BIGGER GOVERNMENT DON’T LIKE THE GOVERNMENT WHEN THEIR POLL NUMBERS ARE BAD. AGAIN NO KINGS EQUALS NO PAYCHECKS. MARIA: YOU HAVE APPROACHED OUR RELATIONSHIP WITH CHINA WITH A PRACTICAL LOOK AT THE REALITY OF THE SITUATION. WHAT I MEAN WERE STILL VERY RELIANCE ON THE CHINESE SUPPLY CHAIN. YOU ANNOUNCED THAT YOU ARE GETTING SUPPLY CHAINS BACK TO AMERICA, YOU ALSO ANNOUNCED STAKES IN CERTAIN COMPANIES. I WANT TO GET YOUR TAKE ABOUT THAT. THE DOD ACQUIRED A STAKE REPRESENTING 15% OF MP MATERIALS, TELL US WHY THIS IS SO IMPORTANT. I KNOW THERE ARE RARE EARTH MINERALS AND THE UNITED STATES AND ACROSS THE WORLD BUT IT IS THE REFINING OF THE RARE-EARTH THAT HAPPENS IN CHINA, THAT’S WHAT WE NEED TO BONE UP IN AMERICA HOW ARE YOU LOOKING AT THE COMING COUPLE OF YEARS IN TERMS OF CREATING AN INDEPENDENCE IN THIS COUNTRY SO WERE NO LONGER RELIANT ON THE CHINESE SUPPLY CHAIN. >> NOW THAT WE SAW WE SAW DRINK OPEN THAT WAS A PREVIEW WE’VE SEEN THAT CHINA CAN BECOME AN UNRELIABLE SUPPLIER TO THE WORLD WEATHER IS CRITICAL MINERALS, CRITICAL SUPPLIES AND WITH THEIR ANNOUNCEMENT LAST WEEK THEY TAKEN ON THE WHOLE WORLD WHETHER THEY WANT TO BE A RELIABLE SUPPLIER. WHAT WE’VE DONE IN THE U.S. A THREE DECADE PROBLEM IN THE MAKING, THE U.S. USED TO CONTROL RARE-EARTH PROCESSING AND REFINING, THE CHINESE BOUGHT A U.S. COMPANY. IT WAS REQUIRED AND KEPT IN THE U.S. FOR FIVE YEARS, FIVE YEARS AND A DAY THEY MOVED INTO CHINA AND THEY HAVE A STRANGLEHOLD, AS YOU SAID THE REFINING THE PROCESS AND RARE-EARTH AND GENERAL ARE NOT RARE, THEY ARE EVERYWHERE BUT IT’S A REFINING AND PROCESSING AND WHAT HAPPENED OVER THE PAST TWO DECADES IS ANY TIME A REFINING OR PROCESSING FACILITY HAS BEEN SET UP EITHER IN THE U.S. OR IN A FREE-MARKET COUNTRY, THE CHINESE COMMON AND UNDERCUT THE PRICE. WE HAVE INVESTED IN MOUNTAIN PASS AND WE ARE GOING TO DO THE EQUIVALENT OF AN OPERATION WARP SPEED TO GET SECURITY IN THE RARE-EARTH PROCESSING AND AT THE SAME TIME WERE GET A GUARANTEE FOR PRICES FOR THE PROCESSING AND REFINING BECAUSE YOU CAN HAVE A FREE MARKET WHEN THERE IS A NON- FREE-MARKET STATE ACTOR DESTROYING CAPACITY. MARIA: THIS IS IMPORTANT AND WE TALKED IN THE PAST ABOUT HOW YOU ARE MONETIZING THE U.S. BALANCE SHEET BY TAKING STAKES IN VARIOUS COMPANIES LIKE INTEL FOR EXAMPLE THINGS THAT ARE NATIONAL SECURITY ISSUES LIKE SEMICONDUCTORS OR PHARMACEUTICALS. WAS THERE A DISCUSSION ABOUT TAKING A STAKE AND NVIDIA? >> NOT THAT I WAS EVER A PART OF. NVIDIA’S MOST VALUABLE COMPANY IN THE WORLD, THE MANAGEMENT IS INCREDIBLE AND THE INTEL STAKE WAS A CONVERSION OF A GRANT THAT WAS MADE TO INTEL. PRESIDENT TRUMP I WAS SITTING IN THE OVAL OFFICE WHEN HE MET WITH THE INTEL CEO ALONG WITH SECRETARY LAWTON AND PRESIDENT TRUMP SAID WHY DON’T WE TURN THIS INTO AN ASSET FOR THE AMERICAN PEOPLE AND I SAID MANY TIMES BEFORE PRESIDENT TRUMP IS GOING TO BE THE PRESIDENT WHO CREATES ASSETS FOR THE AMERICAN PEOPLE NOT DEBT. ONE THING THAT HAS GOTTEN COVERED UP IN THIS GOVERNMENT SHUTDOWN IS A DEFICIT ACTUALLY WENT DOWN SLIGHTLY NEXT YEAR AND THE OFFICIAL TREASURY NUMBERS WILL COME OUT WHEN THE CHUCK SCHUMER DEFICIT IS DONE MORE IMPORTANTLY TO GDP, NOW HAS 5 IN FRONT OF IT DOWN FROM 6.4, 6.5 RECORD LEVEL THAT WE INHERITED STABILIZING THE FINANCES AGAIN ECONOMIC SECURITY IS NATIONAL SECURITY AND HAVING A ROBUST ECONOMY AS WE HAVE NOW, THAT IS THE ENVY OF THE WORLD AS OPPOSED TO THE MESS THAT CHINESE HAVE RIGHT NOW IN THEIR REMARKET MARIA: ABSOLUTELY SECRETARY BEFORE YOU GO, MY FINAL QUESTION HERE THIS IS NOT HOW WE ENVISION OUTSIDER INTERVIEW YOU WERE SUPPOSED TO JOIN US AT 7:00 BUT THE PRESIDENT WAS SPEAKING WE TOOK THOSE LIVE, OF COURSE, INCREDIBLY IMPORTANT BUT CHINA STORY IS IMPORTANT TO MARKETS A SELL-OFF FRIDAY WHAT IS YOUR FINAL MESSAGE, TO INVESTORS THIS MORNING, WHO ARE WORRIED THAT THE CHINA-U.S. RELATIONSHIP IS DETERIORATING, THAT U.S. HAS WAY TOO MUCH RELIANCE ON CHINESE ECONOMY AND THEIR SUPPLY CHAINS, THAT WE ARE TALKING ABOUT NOW, THIEVES OR VESSELS IN CHINESE PORTS WE’VE GOT A ONE HUNDRED PERCENT TARIFF, ADDITIONAL ON CHINA EXPENDING, TO IMPACT THE U.S. ECONOMY YOUR FINAL MESSAGE TO INVESTORS THIS MORNING, SECRETARY. >> LET’S WORK BACKWARD A LOT TO UNPACK ONE ONE HUNDRED PERCENT TARIFF DOES NOT HAVE TO HAPPEN. . AS I SAID THERE WILL BE WORKING LEVEL TALKS THIS WEEK. AND I IMAGINE THAT I WILL — HAVE SOME CONTACT WITH MY COUNT COUNTER PART TWO LEADS WILL MEET THE RELATIONSHIP DESPITE THIS ANNOUNCEMENT LAST WEEK IS GOOD. LINES OF COMMUNICATION HAVE REOPENED, SO WE WILL SEE WHERE IT GOES. WE ARE GOING TO STAND FIRM, AND REJECT THESE — LICENSING REQUIREMENTS BECAUSE THIS IS FOR THE WE’LL WORLD GROUP OF BUREAUCRATS IN CHINA CANNOT TELL US OUR ALLIES HOW TO RUN OUR SUPPLY SYSTEM, TWO, WE ARE TAKING SOUND MEASURES TO RIGHT THIS PROBLEM, AND WE DON’T WANT TO HAVE TO — FLIMIT OF XE. SHOW CHINESE THAT AS PRESIDENT SAYS WE DO HAVE MORE CARDS WHEN SOFTWARE MINERALS FINANCIAL SERVICES THEN THREE, WE ARE SEEING TODAY, THAT IT WAS AN HONOR TO BE ABLE TO WATCH PRESIDENT TRUMP AT THE KNESSET, AND WITH THE GREAT TEAM THAT ASEM BLD WE SEE GREAT MOMENTUM THAT THE — THAT WE HAVE HERE, DESPITE THE DEMOCRATS TRYING TO SLOW HIM DOWN. MARIA: YES, ABSOLUTELY, SECRETARY, AND HISTORIC DAY, HISTORIC CONVERSATION, WE SO APPRECIATE YOUR TIME THIS MORNING, TREASURY SECRETARY SCOTT BESSENT THANK YOU, SIR. WE WELCOME YOU BACK,

U.S. Treasury Secretary Scott Bessent weighs in on the Israeli hostages being freed, China’s latest hostile move against the U.S. and ongoing fallout from the government shutdown during an appearance on ‘Mornings with Maria.’

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