tv MSNBC Live With Velshi and Ruhle MSNBC August 14, 2018 8:00am-9:00am PDT
$43,000. the photographer here rick lee for the west virginia supreme court of appeals. pretty astounding there. a warning to all. thank you for watching this hour of msnbc live. right now, more news with my colleagues, ali velshi and stephanie ruhle. >> good to see you. we'll catch up with you later this afternoon. i'm ali velshi. i'm stephanie ruhle. >> a dog? how dare he. he has taken this country to its knees. >> the escalating battle between president trump and his former protege omarosa after she went back on tv revealing more recorded conversations with white house officials, trump took his insults to another level. in a tweet this morning he called omarosa a crazed lowlife and then congratulated john kelly for firing her and then referred to her as that dog. >> now the president comparing
omarosa, a woman he hired a year ago and kept in a high profile, high-paying job, now referring to her as an animal. in effect, trying to prove he didn't use a racist slur by using a sexist slur. >> when you call a dog, we know what that means and we know what that context is, and that's probably the worst thing you can call a woman. >> is it appropriate for the to the call a woman a dog? >> i think it's inappropriate for people to say that they've never heard the president use certain words or tell any of us they have concern about it. >> the financial crimes trial of paul manafort is winding down in virginia. his defense team is beginning their case today, but it's not expected to last very long. >> i would be absolutely shocked if manafort took the stand. >> i think they may well not call any witnesses at all. >> breaking news, it's out of london this morning, a driver ramming his car into pedestrians and cyclists before crashing into a barricade. it happened outside london's
parliament. >> from westminster the heart of britain's democracy, it is this morning in lockdown after what police are calling a terror incident. this morning, yet more disgusting and frankly unacceptable, indecent language from the president of the united states. apparently unable to act within the decorum of the office where even just basic decency, he is under criticism from a former aide. the president tweeted this morning, once again, the eighth time, about omarosa. this time calling her a dog. what is getting so deeply under the president's skin, that he has to resort to this? that's what we want to know. ironically, the allegation by omarosa is that a recording exists of him using the "n" word. well, she made her recordings during her time on the campaign and in the white house, something we asked her about when we spoke to her yesterday on this very show. >> do you have more recordings? >> oh, absolutely. >> are you planning on releasing them? >> i don't know. i'm going to watch to see.
they've been threatening legal action, trying to figure out how to stop me. >> all right. less than 24 hours, just this morning, she released another recording to cbs. apparently capturing a phone call she had with then campaign spokesperson katrina pierson and senior adviser lynn patton discussing an "n" word tape, something the president has denied and how they could spin it if it came out. nbc news has not been given access to the tape and we do not know what came before or after, but listen. >> i'm trying to find out at least what context it was used in to helps us maybe try to figure out a way to spin it. >> i said, well, sir, can you think of any time that this might have happened and he said no. >> well, that's not true. so -- >> he goes, how do you think i should handle it? i told him exactly what you just said, omarosa, which is well, it depends on what scenario you're talking about. and he said, well why don't you just go ahead and put it to bed.
he said it. >> last night on fox news, katrina pierson said that conversation never took places. >> no. that did not happen. it sounds like she's writing a script for a movie. i've already been out there talking about this. that is absolutely not true. i have no sources with that tape. >> she's not just writing a script for a movie, it appears she's already filmed it. you're in, katrina. >> this is interesting. this is a pattern of three or four days now where someone has said, didn't exist, no conversation happened, not true, not true, and omarosa has the tapes. >> and this newest recording is adding credence to the communication strategy that omarosa detailed to the two of us yesterday where she said that the white house staff on a daily basis preps the president to lie to the american people. >> so was he being prepped to lie? >> he was being prepped by hope
hicks and the team. >> so if the team prepped the president to lie to lester holt -- >> they prep him to lie every day. >> his comment about omarosa is just the latest in the president's attacks on women and minorities. days after nba superstar lebron james opened a school for at risk youth paid for with his own money, trump implied that lebron was dumb, adding that cnn anchor don lemon was the dumbest man on television. trump has repeatedly called congresswoman maxine waters a low i.q. person and after megyn kelly challenged him he said she had blood coming out of her whatever. >> another nbc colleague, mika bra zinke called neurotic, called puerto ricans still recovering from hurricane maria a year later ingrates, gave a former miss america miss piggy, and he's called rosie o'donnell a fat, ugly slob.
>> miss piggy, mirror mirror mr. president. as chief of staff john kelly lamented to the press corps how women used to be scared, maybe he should take -- excuse me, women used to be sacred, maybe he should take that up with his own boss. the president has called women vulgar terms, called breastfeeding mothers disgusting, said he can treat them like blank and, of course, you know he is free to grab them by the genitals. i remember when ivanka trump was asked about that tape and she said she never heard her father speak like that, but after hearing the tape she found it very jarring. well, first daughter ivanka trump, senior adviser to the president, advocate for the advancement of women and girls, what do you say about the long list of other things? still jarring? >> okay. not just this. the president has issued a travel ban initially aimed at muslims, based on their faith and we can't forget he launched his campaign calling mexicans rapists. for those people who are still
struggling with this idea -- in fairness we had to ask omarosa about when she came around to the idea the president might be a bigot. she's one of few people who can't look at this evidence and come to the conclusion that the president is bigoted. >> we're not defending omarosa or her credibility, she's someone during the campaign was part of a documentary where she said the naysayers will be bowing at the altar of president trump. i mean, it's just stunning to watch all of this happen. >> joining us now is pulitzer-prize winning journalist, jonathan capehart. good to see you, my friend. >> you too. >> let's start with omarosa. the white house and the president's allies are calling her character and credibility into question. a lot of people are by the way and have been for a while. >> fair. >> she spent years billing herself as a reality tv villain. but she has tapes. >> like michael cohen, a complete sleazeball, he has tapes and so does she. >> you know what's interesting here, you know that poem about
the snake that president trump used to try out on the campaign trail and now that he's president he has said it as recently as the c-pac conference this past april, the story of the woman who is on her way to work and found a frozen snake and brought it into her home and was shocked when the -- it came back to life and bit her in the chest and its ven know muss and she was going to die. president trump has surrounded himself by snakes his entire career. outside the white house, we see it with michael cohen, inside the white house we're seeing it with omarosa, and i'm not saying -- please don't -- i am not doing a dog/snake comparison. this stuff comes from the top. the president says he hires the best people, but what we're seeing they're not the best people. these are folks who clearly have no reverence for the office of the presidency. clearly no reverence for him or
respect for him. they don't trust him. omarosa is showing us she never trusted him. keep something in mind, i don't know if you noticed this, first couple tapes were from the day she -- the day omarosa was fired. inside the situation room which was unbelievably spectacular she was able to tape the chief of staff to the president inside a secure room. the next tape is her conversation with the president of the united states informing him she had been fired. just those two access points are jarring. but they came the day that she was fired. this new -- this new tape, this new recording, with katrina and miss patton and omarosa, comes really during the campaign. think of these as two book-ends, the campaign, the end of her time at the white house. if she says she has hundreds of tapes, that means there are lots of conversations that we're going to hear about during her
time in the white house when she was assistant to the president. mr. president, if you are now degrading your former -- your former assistant, you don't -- you really shouldn't -- you should blame -- if you're going to blame her, you need to blame yourself as much as you're blaming her. >> i want you to stay on that. who the president is surrounded by and the damage control mode they're in today. you saw kellyanne conway trying to weave her way through whether or not the president used one specific word, i.e., the "n" word, and want to single omarosa out saying she's the villain and bad apple and bad guy. how are they going to do that? when you pull up the laundry list of sebastian gor ka, rob porter, shulkin, price, pruitt, sean spicer, sarah sanders, known liars at the podium every day, and let's not forget steve bannon and steve miller in the white house.
how can the white house possibly get out from under this and move on focusing on as brian williams always talks about the president advancing his legislative agenda, how are they going to get to that when you look at who all these people are? >> look, they'll be able to get beyond this if we in the press and particularly our colleagues there in the briefing room, if we allow them to get beyond this. there are no innocents here. there are no people of high moral standing and moral character involved in this conversation. so we have to start from that point. sarah huckabee sanders will go to that podium and do what press secretaries have done since the position was formed and that is to defend the president and defend the presidency. she is going to stand up there and say whatever she needs to say to protect him and probably read word for word what he's
probably dictated to her to say. it is clear from the montage of things the two of you were talking about what the president has said throughout his career and time on the campaign trail and as president, no one is surprised by any of this. i spent the opening six minutes of "am joy" on saturday just walking through ten, only ten, of the things that president trump has said -- >> jonathan, to this point -- to this point you were doing it and talking about this stuff, some of these things we're showing on the screen were before the election. this president has been free of the consequences that would destroy any other candidate. >> right. >> it is hard to make sense of this. >> binders women was so damaging to mitt romney and you have fat, ugly pigs here. >> wouldn't you love to go back to the days of mitt romney and binders of women and that being the most egregious thing ever
said. president trump has blown that completely out of the water. here's how you hold him accountable. people have to go and vote in november and i say that not as a partisan remark, but republicans control the white house, they control the house, they control the senate. congress is supposed to be the legislative block on the executive. they are a co-equal branch of government, but instead, they've been acting as if they are a staffing wing of the white house. >> yeah. >> if you change the parties on capitol hill, there will be some form of accountability. everyone is always asking me, who is going to save us from this presidency, from this president, from these people? and i always have to turn back to them and say, you are. >> yep. that's the power we're given. good to see you as always. >> you too, ali. >> by the way, you are the only people who have that power. we would love to hear from you about what you think has to
happen now. we're always paying attention to the messages you send us. the first criminal trial connected to the special counsel's russia investigation could soon go to the jury. paul manafort's defense attorneys about to lay out their case. we're going to speak about that plus fallout from the first -- excuse me from the firing of fbi agent peter strzok next. >> but first breaking news in italy, at least 22 people are dead and authorities say that number is going to rise after a huge highway bridge collapsed in the city of genoa. a live update in a few minutes. you're watching "vel she and ruhle" live on msnbc. for just $59... ancestrydna can open you to a world of new cultures to explore. with two times more detail than any other dna test... you can connect more deeply to the places of your past. and be inspired to learn about the people and traditions that make you, you. savor your dna story. only $59--
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. welcome back to "velshi and ruhle." day 11 of paul manafort's trial under way. today lawyers for the president's former campaign manager have a chance to lay out their defense. special counsel robert mueller's prosecutors rested their case against manafort on monday. >> they brought forward more than 20 witnesses to argue manafort worked an elaborate scheme to avoid paying millions of dollars in taxes to support his luxurious lifestyle. manafort has pleaded not guilty. >> all right. we want to bring in gene ross, a former federal prosecutor as well as clint watts an fbi special agent and msnbc national security analyst. thank you for being here. >> thank you. >> gene, on the face of it if you're looking at misdeeds by paul manafort which what is this case is about, the prosecution looks to have made a pretty
strong case. >> i worked for the department of justice for 27 years, i did 30 tax cases and i've said this many times, this is one of the most powerful and compelling criminal tax cases i have ever seen. $16 million not reported. the greed, the lie, the manipulation is extraordinary. i predict this, i can't guarantee a guilty verdict like joe namath did, but it's high likelihood paul manafort will be found guilty of five counts of filing a false tax return, several counts of the bar and bank fraud based on my experience. >> on monday defense lawyers filed a sealed motion and msnbc legal analyst daniel goldman caught our eye, defense counsel for paul manafort told me that the argument over the sealed motion in the manafort trial will continue this morning. seems like there may be some
teeth to the defense motion, which i suspect is related to a mistrial motion for juror misconduct. what does that mean? >> it means that you could possibly have a mistrial. what i'm suspecting -- i've had several in my many trials, i had a couple instances where a juror or jurors were tainted, and it could be they saw a headline of a newspaper in a coffee shop, they overheard two witnesses talking about the case and they made an unfavorable comment about the defendant, it could be it happened to me once where a juror said hello to me in an elevator. >> how likely is it? this judge -- last week, he seemed -- i'm not going to say to go over the line, but he was exceptionally hard on the prosecution. >> let me respond to that. i had -- as i said i had seven trials in front of the judge. i was commenting on my break that going through a trial with this judge is like symbolically
going to boot camp as a marine on paris island. i have been to paris island seven times and my body is covered with wounds and scars by judge ellis. in 20 years i've been in front of hundreds of times. here's how he rolls. he interrupts, he is impatient, he is focused, and he's brilliant. and he doesn't suffer fools gladly. >> last week he was trying to treat prosecutions like fools. >> this is like a football game. the first week the first half. the government got beat up. greg, brandon, they got beat up. the second week, last week, with gates on the stand monday, tuesday, wednesday, i think that judge ellis had an epiphany. i did. i think he realizes what i said before, this is an incredibly powerful tax case. he's now in a relative sense, based on last week, showing i wouldn't say affection for the
prosecutors, but he's toning down what i saw for 20 years. that is how judge ellis rolls. and whether it's a small case or large, you better -- what i want you to do in my courtroom or i'm going to destroy you. i don't use the velvet hammer. he uses a sledgehammer with nails. that's why i have scars. that's who he is. >> yeah. >> and i got to say, if you're going to get a judge in a situation on a jury issue, i got to say judge ellis is probably the best because on that issue, he does not want a mistrial and he's going to do everything in his power to apply the available law to cure that defect, whatever it is, and to make sure the government and most important a defendant has a fair shake. let me tell you this, we may not have any testimony today. this could take all day. the judge, because he's so brilliant, he wants law.
they're going to probably be asked to file five to ten-page memo on the law on this jury issue, which i'm speculating it is. there could be a hearing this afternoon. there could be a hearing tomorrow. all i can say is depending on the severity of the jury poisoning if you will, there could be a mistrial. >> we're going to keep a close eye on that. clint, yesterday, we heard of the firing of peter strzok, which struck us unusual because there had been a recommendation of a suspension and possibly a demotion. his lawyer released a statement saying the decision to fire special agent strzok is not only a departure from typical practice but also contradicts wray's testimony to congress and that the fbi intended to follow its regular process in this and all person matters. testimony failed to produce a shred of evidence that special agent strzok's personal views ever affected his work. what do you make of this? >> i have more questions. i was surprised by it in the
sense that usually when opr, office of professional responsibility, makes a recommendation, the office will essentially be dictating what's going to happen. to break precedent like that raises questions. one question i had is was there something else we don't know about that justified or became an additional reason to push for his firing. that we don't know. there are still investigations going on inside the fbi. the second part, was this pressure from the white house, pushed down the chain of command? then the third part is, were they wanting as the fbi, the director and the deputy director, to make a clean slate and really put down and use somebody as an example to say, this is not behavior we're going to tolerate. if you embarrass or defame the fbi or make us look bad in terms of public and erode trust with the public, you're going to lose your job. i don't know. i think the one thing that they did make a mistake about, they should have explained in great detail yesterday why they did the firing. it leads to conspiracy. >> the president argues that
strzok's actions paved the way for the mueller investigation. does that hold any water? we know it was the president firing jim comey that paved the way for mueller. >> let me tell you something, all my grandparents are italian so i have to hold off on my language right now. i'm not happy right now and here's why. i worked under president george herbert walker bush, president clinton, president george bush, president obama, and i can tell you this, i worked with a lot of fbi agents as i was telling clint, the amount of e-mail among prosecutors talking to prosecutors about their political views, was overwhelming. here's where the rubber meets the road. did a person's political view expressed in an e-mail affect their judgment on that investigation? that i.g. report said no conclusive evidence.
was he stupid to e-mail? was he stupid to comment about hillary and all the other stuff? of course. but i have never ever seen a prosecutor or an agent in any agency get rep mappeded other than a phone call, stop it. i've never seen them go on leave and i have never seen anybody fired over the e-mails he sent. now, what i don't know is, did he lie to agents in the interview process? is there other stuff that we don't know about? when the office of professional responsibility says let's not fire this person, let's just reprimand him, and i have to agree with glenn who trained me in '96, great guy, i agree with glenn, it's very rare to overrule opr's recommendation and say oh, we're not just going to put him on leave, not going to do this, we're going to fire
him. that is unusual. >> so to clint's point, the problem here is if -- of all the options that we've laid out about why the office of professional responsibility, their recommendation would not have been taken, the only one that would trouble us is if this is white house pressure. in the fbi you don't want the white house pressuring the fbi to follow people. >> eric was on bloomberg and said he would do the same thing. the thing is soical complicatedy would have fired him. >> the longer this stays where strzok will be the target -- >> he's a sacrificial lamb. >> move him out of the process potentially. >> going to ask you to hold for a second. some breaking news here. christina, let us know what you got. the trump campaign is filing an arbitration case against omarosa. let's get more on this from white house correspondent geoff bennett. what have you got? >> hey, ali and stephanie. we've learned from a trump re-election campaign official as you mentioned the trump campaign
is taking legal action against omarosa manigault newman on the ground she breached the nondisclosure agreement she signed with the campaign in 2016. remember, omarosa said she did not sign any nda that would cover her work at the white house. he did sign one for the campaign. the audio recording she shared overnight with cbs news and which you can hear trump campaign officials talking about the existence of this alleged tape during the making of "the apprentice" is donald trump allegedly using the word, what to do with it how to handle it, you hear former trump campaign spokesperson katrina pierson say he said it, he's embarrassed by it. well the trump campaign views the release of that tape as an egregious violation and taking legal action, essentially asking for arbitration in the state of new york where the trump campaign is based, so this really is just the latest development, the latest escalation in this battle. >> this what is they do.
this what is the white house does. we're going now into the somebody shouldn't have leaked conversation which is interesting and important in the white house, but we're not dealing with the fact that katrina pierson said on television last night that conversation didn't happen and then omarosa, once again for three days in a row, releases a tape that fully vindicates her argument. >> okay. but clearly right here they can't put the toothpaste back in the tube but want to scare her from releasing more tapes. what could the consequences be if they are going after her? >> oh, against her? >> yes. >> they're thinking she has more tapes, how do we stop her from releasing them? >> they could try to get a tro preliminary injunction. temporary restraining order. >> which isn't hard to get. >> it isn't, but you have to show you're going to win on the merits and there's a harm. i haven't done one, but this is going back to law school. >> right. >> and your argument would be
that she may have tapes involving national security. she allegedly recorded something in the white house. so you can make that argument that, you know, she has information that is national security, executive privilege, and she should not be able to disclose that to the public. that's a tough road. >> this is the trump campaign that is suing as opposed to the administration, so there's -- >> because she didn't sign -- when she was leaving the white house, the reason she couldn't get her personal belongings back because she wouldn't sign that agreement when she left. the trump campaign going after her, she did sign an nda when she worked for them. >> i guess the question here is, likely michael cohen case where the judge had to appoint someone to say you've made arguments why certain evidence shouldn't be in there and the special master got to go through it and say this can go forward, this can't. that may be what has to happen. if she has tapes of the president using the "n" word
it's not a national security issue. >> that would be one option, yes. that would be one option. >> when are you going to start calling me the special master. i like that title. >> i'm ali velshi and this is my special master. take a break. you're watching msnbc. >> i think it's a tremendous title. >> wow. >> we'll be right back. (vo) why do subaru forester owners always seem so happy? because they've chosen the industry leader. subaru forester holds its value better than any other vehicle in its class according to alg. better than cr-v. better than rav4. better than rogue. an adventure that starts with a subaru forester will always leave you smiling. get 0% percent apr financing on the 2018 subaru forester.
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welcome back to "velshi and ruhle." breaking news out of genoa, italy. at least 22 people are dead after a bridge collapsed during a massive storm earlier today, reportedly crushing multiple vehicles and dozens of people below. >> the bridge as you can see on the right is a raised highway linking the central part of the city to the airport and towns along the coast. there it is on the left before it collapsed. now you can see the stunning before and after pictures. if you've been to genoa it's the morandi bridge. matt bradley is covering the story for us. what do we know so far? >> ali, the main thing we keep hearing the number of dead you mentioned, 22, it's expected to rise today. probably dramatically. you know, ali, the bridge that you just showed images of, it doesn't just span over a body of
water which is quite small, it goes over a huge industrial area, kind of like a sunken industrial campus. people below the bridge will be among the dead and injured. it happened around noon italy time today during a major storm and high winds. the bridge collapsed at the outset of italy's summer holidays when quite a few people would be driving across it because it connects italy with the south of france. the middle chunk simply fell out and about 200 firefighters have swarmed the scene. they're still trying to peel away the layers of that bridge, trying to reach survivors who might be in those cars or underneath the layers of the bridge after they fell. you know, this bridge, ali, had just been refurbished about two years ago and work was being done on it when it collapsed today. alongside all that human costs, the political fallout is likely to be huge. that's because italy's poor infrastructure has been a huge
topic. >> this is an issue because when a bridge collapses and there are, as you said, not just water underneath, but there are people and businesses, the rescue is complicated by the fact that there's still a bridge span up there that we don't know why the first one fell in the first place. this is uniquely difficult and dangerous because it's not like it's just aftermath and you're trying to find survivors. >> that's right. i mean, you're seeing these images, snarled rebar, lots of big chunks of concrete. this is tons of infrastructure that fell on to the heads of the people working underneath. these rescue workers, they're going through some death defying, daring stuff to get these guys out. we're seeing images of rescue workers trying to extract people, trying to take victims in rubble in stretchers attached to cables that are suspended from cranes. firefighterses climbing over these jagged pieces of concrete. so in many ways i think the rescue looks almost as terrifying as the bridge collapse itself.
ali? >> matt, thanks very much. matt bradley in london, covering this tragic story in italy. >> our thoughts with all of those people in genoa today. when we come back we're going to take you to london where a man is under arrest in what authorities are calling a terrorist attack. police say the suspect plowed into a group of pedestrians and cyclists just outside parliament earlier today during rush hour injuring several people. it is the same location as a similar attack in march of 2017. if you recall that left five people dead. the president has snubbed republican senator and war hero john mccain. trump signed a massive military spending bill named after mccain yesterday, kind of amazing, it happened while i was on at -- in the 3:00 hour. he didn't mention the senator's name once. he wouldn't even read the official name of the bill because mccain's name is in it. trump won't, we will. you're watching "velshi and ruhle" live on msnbc. but allstate actually helps you drive safely...
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we would not be here for today's signing ceremony without the dedicated efforts of the members of congress who worked so hard to pass the national defense authorization act. congresswoman elise stefanic. i want to thank don baker, dan donovan and joe wilson, who are with us today also. there's another member of congress here today, she is terrific, congresswoman martha mcsally.
>> okay. . five members of congress. there's president trump thanking five members of congress before signing a new defense bill into law on monday. he failed to mention the senator for whom the bill is named. john mccain. >> this is not the first time trump has snubbed mccain, a war hero, currently home in arizona battling brain cancer. >> he was captured. >> he flew combat missions. >> being captured make you a hero? i don't know. i'm not sure. he's not a war hero. >> he is a war hero. >> five and a half years -- >> because he was captured. i like people that weren't captured. okay. i hate to tell you. >> i would have gotten rid of everything, but as you know one of our wonderful senators said thumb's down at 2:00 in the morning. >> president trump didn't have the opportunity to be captured, of course, because he didn't serve. he also failed to mention that john mccain and the great service he has given to america in his speech yesterday. so you know what, ali and i
will. john mccain is, in fact, a war hero. he's a third generation military man who graduated from the naval academy back in 1958. while flying his 23rd mission in the vietnam war mccain's bomber jet was shot down. he was able to eject himself from the plane, but broke both arms and a leg in the process. he landed in a lake wearing 50 pounds of gear and sank to the bottom. he was only able to escape drowning by using his teeth to pull an inflatable life preserver. he was pulled out of the lake by a group of people who beat, kicked and stabbed him multiple times. only then he was thrown in a vietnamese prison without medical attention for days. mccain then survived in solitary confinement for a total of two years. he was offered early release but turned it down because he refused to leave until those american prisoners who were jailed before him were released. after that, he was beaten every two to three hours for days. he survived with even more broken bones and cracked ribs.
in all, mccain spent 2,008 days in captivity, five and a half years. when he didn't see his wife and children. a total of six years he was without them. the government awarded mccain the silver star, the purple heart, the bronze medal, navy combat action ribbon, the prisoner of war medal and many, many more honors. he went on and spent 31 years serving his country as a u.s. senator. let us recap for you, president trump, senator john mccain survived being blown out of the sky, sinking to the bottom of a lake, five and a half years of torture and is battling brain cancer and, mr. trump, if you do wonder about his time in captivity we invite you to watch him walk and he cannot raise his arms above his shoulders. he fought and nearly died multiple times for the freedoms we enjoy every day. here's how he described his time in captivity in his own words at the republican national convention in 2008.
>> i fell in love with my country when i was a prisoner in someone else's. i loved it not just for the many comforts of life here, i loved it for its decency, for its faith, and the wisdom, justice and goodness of its people. i was never the same again. i wasn't my own man anymore. i was my country's. >> decency. >> i was in the cell in which he was held in vietnam. to be in it for a minute and to think somebody spent two years in captivity, this is not partisan, this has nothing to do with anything, there are heros and there are not heros. john mccain is an american hero. how hard would it have been for the president to read something like you just did. something to honor a man for whom the bill is named, a man who has given his life and by the way, as you said,
generations of his family have given their lives in service to the united states? this is just not hard to do. john mccain is a man who deserves honor. >> if putting country first is what a leader would do, again, that defense bill was named in honor of that war hero john mccain and president trump went far out of his way to simply not say senator mccain's name. >> yep. >> stunning. >> he went out of his way to talk about the fake news media, congratulated himself for not using the word and then launched into a diatribe about the fake news. whatever. all right. hey, you could see more money in your paycheck. >> hold on, one more. thank you so much for your service to this country, senator mccain. we're sorry the president couldn't speak for himself. >> your paycheck is not going to see more money this year. the "velshi and ruhle" tax cut tracker who is benefitting from the strong economy and if the u.s. can keep up this pace of growth. the projections are up next. you're watching "velshi and ruhle" live on msnbc.
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economy. right now the congressional budget office forecasts an economic slowdown, thanks in part to president trump's trade war. the congressional budget office, with this groovy '70s logo, is a nonpartisan federal agency that provides independent analysis of economic issues to support members of congress in evaluating the cost and economic impact of legislation. the cbo projects that the u.s. economy will expand by 3.1% this year. that is down, down from a previous forecast of 3.3%. 2018's growth is largely attributed to companies being flush with cash thanks to the recent tax cuts, combined with a surge in trading ahead of the new tariffs. so sort of fake spending. this situation is not sustainable, which is why when you look to 2019, the cbo holds its previous projection. the economy is slowing.
it's growing by 2.4%. the rate of growth is slowing. in 2020, the projection slips to just 1.7%. that is not all. keep in mind, the president keeps saying 4, 5, 6%. these are the numbers we're actually talking about. the cbo has fresh projections now for the u.s. budget deficit, topping $1 trillion by fiscal year 2020. that is up, by the way, from $804 billion in 2018 and $981 billion in 2019. the spiking deficit courtesy of a $1 trillion in tax cuts and roughly $300 billion in new spending increases. and despite numerous promises from this administration, those tax cuts are not saving most american families money either. they are helping the rich get richer. let me just show this to you, because this is fact. families earning $25,000 or less will save on average $60 on their federal tax returns this
year. those making between $48,600 and $86,100 will save on average $930 a year. families in the top 1% of earners an average of $51,000. let me run this by you. $60, $930, $51,000. not all bad news. there's some good news from the cbo. wage growth is finally expected to climb above 3%. at the current rate of 2.7%, any real gain in wages is being wiped out by a strong inflation rate of 2.9%. so at the moment, the average wage earner is in negative. joining us now is heather long, the "washington post"'s economic correspondent. heather, good to see you. there are reasons but why those facts are true and lots to discuss in terms of who is responsible, but we can't get
the white house to accept that those are actually the facts. >> that's true. i saw your interview with kevin h haslet, top economist at the white house yesterday. he said the same things to me, the wage growth will pick up to 4%. right now it's 2.7, very disappointing for this stage of the recovery that, as you noted, is being totally wiped out by inflation at 2.9% right now. they continue to say at the white house and president trump says this, that growth will be 3% for a decade. for the next ten years. the congressional budget office and pretty much every other independent forecaster from wall street or in academia all say that the 3% is a sugar high that fades. >> i want 3% plus growth, we're all on the same side of this, we
all want it to happen. >> absolutely. the tax cuts actually cut the taxes for corporations and they hope that it trickles down. we know that the tax cuts have not yet paid for themselves. and steven in a futu mnuchin is saying the tax cuts pay for themselves. how can the white house argue that this tax cut is justified? >> the key thing to watch is capital spending. their whole argument hinges on businesses going out and spending more on factories, on equipment, on new processes, new intellectual property. and that's supposed to translate into faster growth and into making workers more productive. and then the company should want to pay them more if the workers are making more obtaijects ever hour, they should be more valuable to the company. it's a long shot, it could happen, but most forecasters say
we'll probably see more business spending this year but they don't expect it to last, particularly with this trade war escalating. >> the other effects of the tax cut we could have and did predict would happen, the buyback of shares and things like that, the trade war imposes new problems on the economy. let's just say with unemployment at the low levels it's at and with job growth at the relatively strong levels it's at, that workers could see this wage growth. what's the worry about wage growth versus inflation? i've had people tell me you shouldn't conflate the two. well, regular people have to conflate the two, because if things are more expensive, that wipes out wage growth. >> exactly. what's particularly alarming about the current inflation situation, everyone is talking about energy. larry kudlow, another top economic adviser, tried to say, well, gas prices are up, that's what's driving inflation. but if you look into the
inflation numbers, the key number is shelter. rent is going up. for working class americans, that's the biggest part of their paycheck, is going to rent every month. when we see that hit almost 4% of inflation year over year, that's a hard number for a lot of families to balance in their budget and make work. they're going to need to see much bigger wage increases to help cover that. >> heather, great conversation, thank you for being with us. heather long is the "washington post"'s economic correspondent. >> thank you, hearth. breaking news from the paul manafort trial, the defense has just rested. remember, this is the day they were going to be opening it up. special counsel's robert mueller's prosecutors rested their case against manafort yesterday. they brought forward more than 20 witnesses to argue manafort worked an elaborate scheme to avoid paying millions of dollars in taxes to support his luxurious lifestyle. manafort has pleaded not guilty. the defense, today is the day
when they open it up and make their case. >> no witnesses. >> at 11:53. >> they made a motion to dismiss the case. the judge said, no, the jury will decide whether there's no case here, that's up to the jury. the defense now, both sides have two hours to make their closing arguments and then the case goes to the jury. this is the first criminal trial in the russia investigation. >> wow. remember when we said this is a tax and bank fraud case, it's going to be boring? rachel maddow said it, this is soap opera. >> there is going to be a -- at least it's a scheduled press briefing. maybe somebody should ask them to go on the record about whether the president actually used the "n" word because he put out a weird tweet today saying mark burnett called to say there is no tape.
if you didn't say it, you can say you didn't say it, you don't have to say mark burnett called. >> kellyanne conway is weaving around, making it only about that. you don't have to make it only about that. you can look at the lineup of what the president has done historically. even today, the lack of decency from the white house. can you imagine if an employee with an axe to grind and the ceo made eight plus public statements attacking that person's character? when you're the person on top, you sett the bar. >> thanks for watching this hour at "velshi & ruhle." i'll see you back at 3:00 and 8:00 p.m. >> i'm stephanie ruhle. i'll see you at 8:00 and 9:00 a.m. >> now it's time for andrea mitchell with "andrea mitchell reports." good day, everyone. i'm andrea mitchell in washington. breaking