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tv   Cavuto  FOX Business  May 21, 2014 11:00pm-12:01am EDT

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have a good night. neil: called it mcdonald's getting grilled. protesters circling on the illinois headquarters with a shareholder meeting. what they want to see is have them play nice on minimum wage to double at $15 an hour so workers don't have to protest like they are id eleanor. things got so bad mcdonald's had touche set down facilities that 50 protests were clergy and most of the others were also told were union members.
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what about the big push to doubles of wage? we have richard benjamin it as well as our fox business all stars. i think i understand what is going on. the plush is to increase the minimum wage over three years. they know they will not get $15 but they sure as hell will not settle for the $7 now. so they will leverage to make people think count your lucky stars they would give us the $10 and cents. >> i don't think that is the only logic. they want a fair wage that many cannot support so. >> not just a question of what to the page is but the
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disparity that is part of the conversation. 1,000 / one the ceo making 1,000 times more. neil: but these are franchise operations they're not making millions of dollars per year. they have businesses to run. what if their pay is egregious? what do they have to do due to double that wage? >> but it is the mcdonald's grant. >> but that operation. what will happen? >> they can. it is not just the franchise neil: we don't pay more for burgers? >> the problem is what we discover is that inequality wages are hurting not just mcdonald's but the economy in general. neil: what is the same
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operation is running 11 or 12 now you have to increase their pay spee mhz performance. neil: just that. can you see that cycle? >> it is not as if congress is not getting a wage increase. >> wages should increase normally with economic growth. that is the problem. you cannot force higher wages. the economy has to excepted. the franchisees' are out there running sees businesses a majority of them are small businesses that have said they cannot afford the $15 an hour. the national restaurant association said there will be massive job losses that went through. gerri: i can certainly see the wisdom to pay higher wages to index to reflect on dash inflation but $15 is
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not it. i don't even know if this dicey recovery so i think it would be more important for businesses to be encouraged to get people in the door then we can debate. >> absolutely we keep it hamper rate we need more jobs. so nowe make it more expensive to give somebody a job? why is it we will force a pay level? why not $25? neil: that is what they once. >> you cannot force wages but they force those wages just fine. >> but of disparity is the issue then why is $15 okay? after a corporate ceo makes
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$1 million that is nothing so why is that acceptable? >> this is delightful. there was us $25 million pay package because they came to the realization that the vast inequality is not beneficial to the shareholders. >> if we hayek of minimum-wage the cbo already told us what would happen. we will lose 500,000 through 1 million jobs. neil: you work on the of logic that once they get more money will disproportionately spend it. use this side of the fact that the same restaurants have to lay off workers. you don't strike me as that type of guy but you get your
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own food and you cook it because it is automated. know i take some extra hamburgers but that price goes up. and there is a health care law. there are regulations added did i am all for paying batch but they make enough to provide that. but to buy the burgers to pay through the nose. >> my think tank organization has done many studies if you raise the minimum wage you don't have to pass that cost to the consumer. neil: come on. these corporations have share buybacks. >> they are business owners. >> but that is where the investing is.
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neil: hypothetically let's say that you are right. but you are not. the americans are drawn to value meals and value pricing at wal-mart. every time mcdonald's has to increase the price of those the business goes the way. wal-mart just this week warren did -- warrant the customers are not there. >> you make the important point but mcdonnell's is mostly a franchise enterprise 90% individual owners >> this is a brand issue we have many states with many states with a national -- with minimum wages that are higher.
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>>. >> name in any industry that can handle a double of the cost and it does not affect prices is? that does not exist anywhere. neil: you don't eat fast food. cellular after my health. >> the sow for mercy o is year returning to the corporate world. not at mcdonald's. good timing but just as fast and delicious. and delicious. after this.
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[ girl ] my mom, she makes underwater fans that are powered by the moon. ♪ she can print amazing things, right from her computer. [ whirring ] [ train whistle blows ] she makes trains that are friends with trees. ♪ my mom works at ge. ♪ that. neil: i had the pleasure to speak to thousands of ceos my next is my favorite although not just because the brought food. the former ceo of mcdonald's usa.
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because of laziness and incompetence pouring good money after bad but there is a rare quality in the business world that does a guy is now into a chain that is known for the delicious barbeque ribs the new ceo of dave's barbeque. of i only say that because he brought some barbecue and i am hungry. [laughter] congratulations. >> is an accident that this is the fabulous company. >> you just got bored. >> a little bit. neil: did you pick up our discussion in the prior segment of the protest where people want a the minimum-wage -- providing
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they will happily settle for that higher wage the president once but $15 is like the overture. >> absolutely. they will settle at $10 to think they did something magnificent but they should settle at $8 to see there entry-level jobs never meant to be careers. >> but everyone of those protesters is paid minimum-wage. >> i don't know how many are fast-food workers. >> people are paid $8 to show up. neil: if you are at that wage a dozen years or more something is wrong. >> there should be of a career path for all
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minimum-wage workers if they find a career that they like >> i started off making $85,000 -- $0.85 per hour. neil: did somebody come in at some point to say we have a small increase? >> i bet you 60 percent of those executives worked in a restaurant. neil: about what is the time? just time alone? >> one nicole an hour every day for a month and they've asked me to be the assistant manager then i the cave of manager. neil: but when somebody comes in and with a page that is higher than mine i will be in a way it because i am paid north of
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minimum-wage the you have doubled of wage so i want more my colleagues want more , where does this go? >> it is inflationary. neil: what do you dope -- do? mimics a viable substitute equipment for people and jobs will be lost. neil: equipment cannot make the bid. >> but we have dug up since that is programmed with 60 recipes you don't have to have all the manpower. >> we are getting ready to put it to attested june june 1st. neil: you have options so you could also lay off workers. >> a little bit of everything you automating and get a bit of people and adjust schedules. with the of tip credit you
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don't get that so we pay 3 percent of the of wages of credit-card processing for a tip money but you cannot afford to do that. our labor content is 35% of sales others would come out of business. neil: what you understand so well i was of manageress 17 but here is what i discovered. said customer was king. it was only a few years ago. now with the worker cares more for himself than the customer that makes the job possible. will customers paid more for a value meal? if it comes down to a choice >> without naming the restaurant is discos at $10
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and cents we will have to generate $80,000 each per year more to pay for that that is $240,000 or 2.$4 million to offset. neil: but you can offset to lay off. >> and we will substitute people for machines and raise prices. you have to raise prices. neil: county you incentivize workers to feel appreciated because they will protest? >> you will get the people with the greatest attitude to nurture them and develop and encourage them. and we have great people of famous days. >> but what do you say that that the business guys overstayed the cost? they moan about rules and
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regulations? could you do what you are about to do now? >> it is a totally different and environment the amount of taxes that they pay are staggering. between $250,000 franchisees' cannot afford that franchise is the best small business model in the overall than they will disappear. they cannot get a return on investment and they will not work just for a salary. neil: congratulations. you will do a good job. >> let's have a bone together. [laughter] neil: when i was a manager he had product. veterans affair controversy set the secretary will not go anywhere they he is very
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mad but when someone tells you they are very very mad react to mad when you just say this i am very mad, i don't know. that's it is just me. after this. we're moving our company to new york state. the numbers are impressive. over 400,000 new private sector jobs... making new york state number two in the nation
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only from xfinity. neil: closed at what the of wind had dropped in. good to see you. >> kneale you look great. >> look what happened. [laughter] not so fast in mecca i would not have worn a white shirt. neil: i know it is good
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timing. but you heard what happened last night and with the primary races idaho if rino is the right term but we will talk about that with raising money but what do you think? >> the divisions are largely exaggerated. most republicans want smaller government with lower taxes with the entrepreneurial system that is sent with the wave of regulation and the threat and by a weak position in the world. are you a part of this camp but they want to win with the timeless principles. that we have to pick up seats but we have to be tempered by the reality to
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pick up the presidency in 2016. neil: when you ran for president that your party can grab the defeat from the jaws or to avert -- over, but let's say republicans take the senate who is to say they don't screw it up again? >> to have the strategy your focus don't get caught up with ever select committee that the transcendent issue is does this country have an opportunity to give everybody a shot? if you don't remaking and repair. neil: even rick santorum said that you are not going to the great party to appeal only to rich white guys. >> we have to repair the lost and demographics. we have to win them back.
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neil: how do you win back the hispanics or women who for some reason? >> what about bread-and-butter issues? >> certain aspects a capture what they say. that is part of the theatrics. we have to stay focused on bread and butter issues job opportunity, job creation comment energy self-sufficiency and balanced budgets. there is something every american will like to. that is my future. i might disagree with one or two things but i want my family and my kids and friends to be a part of that neil: you mentioned some of crazy republican that is how they are viewed that they just fly off the handle. >> then there are crazy democrats.
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neil: absolutely. >> clinton raised the bar but it will take leadership. neil: would you do it again? >> i am not looking at 2016. neil: jeb bush? >> a good man. but let's let ideas bring people for word but don't play the name game. neil: that is where the of money crowd goes. we will get into that more. that seems to be the winning strategy. >> that is so fungible in the 2012 races that santorum all the money goes to him. it is fungible following leaders and ideas so let them speak and the money will follow. neil: even herman cain was getting money. >> italy takes you so far
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then it has to be ideas. neil: what about the of coke brothers how they are treated by theeft? >> go down the street to see what they have done. you can say this or that but a lot of people on their rights or the left have to of -- have given. >> baby they threw $1 billion a way to good causes like the arts and curing cancer. there are targets because you cannot give that that level without being targeted by the democrats or the left. but we have a broken campaign finance system it would die me a bad thing for republicans to say it is wrong and it is broken. the party of the reform minded republican to figure out how to fix this system. every american knows it
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isn't working the way it should and there are solutions long-term. neil: as a former ambassador to china you see them into a deals that could be worth hundreds of billions of dollars. they seem to cozy up to the european community's. >> what is going on? >> the chinese don't do well but today they do as well as the late '50sas and oil play but beyond that a partnership to poke the united states in the eye and the chinese don't mind it too that they would like us see us taken up with ukraine and crimea we take our eye off the ball. >> with the security
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encroachment knowing full well you will not get them. >> i would have done what i advocated in a commission report i authored last year running at $300 billion loss per year that is killing our innovation which is the most important thing americans need to understand. not just dollars and cents but the spirit of innovation because they will not run the risk if they know the chinese and others will rip-off. so we have tools we spelled out that ought to be used. blocking importation of goods that contained material or ideas that were ripped off. section 337 the international trade commission can stop these up of border. >> you should not be doing business with chinese entities that are a part of
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any aspect of property rights. when companies want to go public they ought to say if they are in any way a part that ought to be listed as a material aspect of any filing that is the attention getter to freeze all its of movement on the part of the government of china to take part which they have been reluctant. 40 years. neil: that makes too much sense. no wonder you were a candidate. thank you very much. i am not blowing smoke. in a whole atmosphere filled with children and temper tantrums the last adult tantrums the last adult standi
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>> when i came atop if i said that we would systematically work at this problem. it we had been working really hard to address them. neil: the wait a minute, that is not what jay carney said. >> when was the president first made aware of these fraudulent lists? >> i think the specific allegations were reported out of your network out of phoenix, i believe. we read about them through the reported. neil: we are getting different vibes out of the white house on this whole escalating scandal that started benefits not getting paid and now it has escalated to patient care and the political crisis manager is with us now. for now the president is keeping this and so that doesn't change. i've seen this playbook before.
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>> is, i think the reality is the president expressing that he was unhappy and outraged about the situation. @-at-sign from anyone who has heard about this feels the same outrage. the what veterans are looking for and policymakers are looking for is a plan forward of reform and holding people accountable and everything that brings together the input about what is going on. the reason this is important issue is because these are real people and these are someone's grandfather's or fathers or brothers or sons and our military heroes that have put their lives on the line. they deserve the best care. neil: that is what is igniting this bipartisan rage. a lot of getting old and they need our help and i think on the right or the left you want to do the right thing. and apparently the right thing isn't happening. but my issue is this rage on the
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part of the president. you say you are mad and you are curious, you can't just say so, you really have to act it out, don't you? >> well, if i were advising the president, i would tell him that it's fine to express outrage, but you have to follow that up with a specific plan of action is to be a system across the board is open and there needs to be a real honest and public review of what is broken and when will it be fixed and keeping a person in office who has been there, they have lost all credibility with veterans. why is the president not firing him? >> let's begin with more about this. this is the way it rolls out. i'm annoyed come outrage, i never see this as a finished
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investigation though. >> he knew nothing about how the obamacare website wasn't ready. he knew nothing about what was going on in the irs. i think you might just be tired of trying to defend all of the various scandalous their hitting the administration. >> should be good at defending it, because he's deflecting this every quarter. and that is the problem. don't you think that after all of the scandalous, being really angry about something, don't you think he would finally say, okay, i figured out how to up this and i'm going to put someone's butt on the line and they will be be in trouble. >> i know they call him no drama obama, but sometimes you need some drama mantises wakes nothing is going to happen. because it's emblematic of what the president stands for. looking at the va it is a huge bureaucracy. it was all administrative costs and what this is is a look at
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what big government looks like and what that does it has no interest in improving services by keeping people on the line. >> is this not going far? >> this is either going to be realistically barack obama's hurricane katrina moment where the bush administration lossless and they showed the ineptness of government not being able to provide basic essential services. if the president doesn't get serious about eating transparent and putting forward a plan that involves capitol hill and lawmakers and a path for reform and cutting the va and starting over, this will be his hurricane katrina. neil: size, i want to thank you so much. these are not just republican soldiers and veterans these are not just democratic soldiers and veterans. these are guys that are hurting
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neil: welcome back, everyone. presidential candidate john huntsman was telling us that this clearing of the field and a lot of republican primaries this week including tea partiers is continuing. it means now that the money guys have a clear picture where they can put their money. so did that clear the decks a little bit? >> absolutely and he is right on. i liked what he said. and he is just a decent human being. >> he gets that, and he's smart, maybe that's the reason that a lot of people didn't get it in the campaign. i always thought that he was right on and a pretty sharp guy.
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yes, the question is going to be the individual so nice. i see that as supporting the canaday and what is going to happen to a lot of the tea party? the money on that site is going to be drying up in bed. so how are they going to get their message out? and are they going to continue to run candidates against establishment candidates. what have we seen this going down? money doesn't always mean that you're going to win a race. when you have not enough money, it is bad. but sometimes you need to blame the message and not the fact about the money. >> i wonder what is this mean, whenever they lack in fervor,
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ron paul illustrates. they feel like they've been slighted from the side, i can't picture them, you know, really galvanizing for the grand old party. >> the tea party is important. they are the guys forgot the republican party to come back. and look at what is happening on capitol hill. we are finally looking at a federal government that is shrinking and that is something we have not seen the past 60 years. when we have federal spending would actually decrease and it's still really bad. and this is my point. that we need to move away from people saying that it's never good enough to saying that we are winning, how do we win one. >> i can't imagine that they're
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feeling very good and they've been demonized all over the place. these are the guys who reminded the republicans where they came from, what hell did we go through when we ran through the republican administration. he never met a spending bill he didn't like and then you naturally roll into obamacare. neil: do you know where the money is going. so what is the latest? >> i know that a lot of people after these elections, they are concentrating, at least my daughters are, concentrating on having a gop u.s. senate where in 2016 we really don't know. hillary is going to be one heck of a horse to be reckoned with. >> he refused to listen to me. but she will not be the democratic nominee.
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>> i really think that she well and even if she doesn't want to be. >> thank you. it's always a pleasure. she does know more about this than i ever will. and we had the war on pot is still a lot of poor people. the great society that was going to feed everyone, a lot of people are still hungry and of course we spent trillions to course we spent trillions to make our kids predicting the future is a pretty difficult thing to do. but, manufacturing in the united states means advanced technology. we learned that technology allows us to be craft oriented. no one's losing their job. there's no beer robot that has suddenly chased them out. the technology is actually creating new jobs. siemens designed and built the right tools and resources to get the job done.
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neil: i didn't think it was possible for kids to be dumber today than i was in school, but it's happening. they are spending money to make sure that we have brainiacs. it's not happening.
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26% of 12th graders today are proficient at math and that would tell me that three quarters are not. it's barely better in reading. but on both levels since the 1970s, these are way down. so why throwing money at this problem has not worked. what is going on here? >> i don't think students are dumb, but i think the federal government gets done all the time. since the 1970s we are spending almost three times today per student. and this is the thing. the numbers show that it's not actually educating our children. this money goes to about 100 different federal education programs. it does about $30 billion a year to the states. we hear all this talk will present obama is guilty of it himself. we need more money because you have to hire more teachers. the fact is that we have more
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teachers today for student and we have ever had in the history of this country. neil: so the hiring increase has been far more dramatic than the increase in students? >> yes, that is right. if you look at public education employees, only about half of those folks are actually teachers. i'm not saying that we need more teachers. but what about all the money that is going to administrative folks, many of which are dealing with the burdensome paperwork coming out of washington. what is the money was spent on education itself in giving the state and parents to decide what is the best education for their children because clearly the government doesn't know. >> what about the charter schools? they seem to be graduating students a rocket scientist.
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and the more ineffective you are, the less we accomplish and the more money you get and what power you have. once they were spending all this money to make our kids smarter, were not spending money to make a kid smart but to grow a bureaucracy. >> that's all they do is when that money gets spent and it doesn't work, i think you talked about this previously. you need to almost educate the educators a little bit here. when you look at studies, the home life of the kit is very important. outside activity is very important. the most that you can learn is in the classroom in front of the teacher. and you have a lot of great teachers that go unreported and unrecognized out there. >> wanting in this study is the fact that there are gaps between whites and minorities is the
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widest it's ever been. so where are the incentives to the great teachers? i think most americans would be happy to pay to see results which we are not seeing. >> in many cases you are running good teachers out of the school system because you're rewarding those who don't do well. and the fact is there are some states, florida is a good example, we've actually seen a lot of innovation from a local school districts trying a lot of different things. in those places you see the achievement gap between white, black, hispanic students, all this greatly shrinking and you see good teachers staying in the system hurts i think the choice is a good thing. most localities and states that have tried it, their students are doing better. everyone is following what the federal government wants. neil: thank you guys so much.
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neilwe're moving our company. to new york state. the numbers are impressive. over 400,000 new private sector jobs... making new york state number two in the nation in new private sector job creation... with 10 regional development strategies to fit your business needs. and now it's even better because they've introduced startup new york... with the state creating dozens of tax-free zones where businesses pay no taxes for ten years. become the next business to discover the new new york. [ male announcer ] see if your business qualifies. i got more advice than i knew what to do with. what i needed was information i could trust on how to take care of me and my baby. luckily, unitedhealthcare has a simple program that helps moms stay on track with their doctors and get the right care and guidance-before and after the baby is born. simple is good right now.
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(anncr vo) innovations that work for you. that's health in numbers. unitedhealthcare.
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neil: what is the deal with all of this president ben carson talk? after he appeared yesterday, a lot of use them to agree that the title might lead. mike on facebook says it would nice to be have a president with a grain of common sense. and williams says the answer is yes, a clear articulate voice of reason. and forrest says common sense is a gift. and maureen writes that doctor carson is a voice of reason and a voice that helps us during a time of confusion.
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and todd writes, do you prefer governors or senators? well, usually governors because they have the executive experience. but we have some impressive senators that have become president, like john kennedy comes to mind. and as much as i love the concept of an outsider coming to the white house, the learning curve is just as deep. that is from philip and philip, you are right about that. and marine writes what you think of financial acres is running for president and chris says the what is wrong with anyone in the u.s. who
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thinks they are up to that job and running for a? nothing is at all as long as the person has a lot of money and access to money. sadly it has become the mother's milk of politics. and then it says i don't care what anyone says about this doctor carson guy running for president. the way that i figure it the nation gets down in the dumps and he can issue prescriptions everyone in the country or valium and then we are all flying high and oblivious to the world. well, there is that. and sarah says to know what we're musing and leaders today? human? people who are funny. you are funny, you are very funny. funny how? funny like a clown? [laughter] and the underwrites and no mattw many people say they want an outside candidate, remember herman cain? remember pat paulsen? herman cain was a serious
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candidate. a lot of people who have held that office of the comedians without intending to. so you might be onto >> >> this has me frustrated that the veterans who made it back safely from battle of left to die with the crap beat health care system or the president just learned about all the news? water his advisers and cabinet secretaries for? kids he just read the white paper or something? the press conference was underwhelming even though long-term allies say the double

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