The Dan Bongino Show - Ep. 692 How to Win the Economic War with China

Episode Date: April 5, 2018

Summary: In this episode I address how to win the economic war with China. I also expose the Democrats’ battle plan for the 2018 midterm elections and beyond. I discuss The NY Times' sorry attempt to advocate for additional gun control. Finally, I discuss the broken economics of our car market.    News Picks: Our latest “Debunk This” piece about tax cuts.   What would happen if China stopped lending us money?    This author does a great job destroying the NY Times' efforts to debunk arguments in favor of gun rights.    The liberal war on homeschoolers continues.    Why won’t the FBI turn over this critical document in the Russia case?   The worst piece of “journalism” I’ve seen in a long time.    Copyright CRTV. All rights reserved. Learn more about your ad choices. Visit podcastchoices.com/adchoices

The Dan Bongino Show. Get ready to hear the truth about America with your host, Dan Bongino. All right, welcome to the Dan Bongino Show. Producer Joe, how are you today, my friend? I'm doing pretty good, Dan-o. How about you, man? Good. So, you know, I read your email feedback. I always appreciate you communicating with me, my wife, and the show. We both read your emails. And one of the critiques, which is fair and a good one, of the show recently, especially the stuff on China, has been, okay, well, what are we going to do? And that's a great question. So I want to get into some of that today. Fair enough question, right? China is attacking our markets. There's no question about it. They're stealing our intellectual property. They've been hacking into our business networks. They are definitely not

our friend. And I think you know my position if you're listening to the show and what I think about tariffs. But on that front, it is a fair question to ask me back, okay, well, what the heck can we do to stop that? So I want to get into some of that today. It's a really good point. And I've got another really stacked show for you today. A lot going on. The AP doing Bob Mueller's dirty work, dirty work the associated press basically putting out a piece saying you better cooperate with bob muller joe or i'm not even kidding like they consider this journalism now look at all the benefits of cooperating with bob muller it's just pathetic yeah that's the ap no i mean it's just it's propaganda arm for the dem party i also want to get to eric holder and what he's doing with redistricting and a really, really

dangerous warning sign ahead for Republicans in the state of Wisconsin. So, yeah. You know, listen, folks, we gotta you know, if we're gonna stay frosty for the fight, we gotta know the fight that's going on. The Democrats are gearing up for 2018. Make no mistake. And something happened in

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All right. So let's go to story number one. Here we go. I didn't know how to title this one appropriately joseph so i said how to crush the chinese in this fight i had no elegant way to say this but uh again a fair enough critique has been people all right dan you're complaining about a lot of this uh terror fight back and forth what would you do okay interesting piece by uh martin feldstein i kind of hinted to this the other day a little bit the show but i didn't go into enough detail in the wall street journal today about the tech transfers the chinese are killing us folks here's what they're doing they're demanding but not demanding

that high tech companies in the united states that produce a lot of value here, they produce technologically advanced products. And remember, folks, we're not talking about rubber dog toys, okay? The margins on a rubber dog chew toy may be, I don't know, 10 cents for every $3 dog toy that sells. Why? Because they're commoditized. There's no real technology that goes into it. It's a rubber dog toy. It's a piece of rubber a dog chews on. I don't know what they make it look like, a bone or whatever. There's not anybody can do it. I mean, Joe and I could probably start a rubber dog toy company in a few months. Nothing against rubber dog toys, but it's not complicated.

Yeah, Danny Bones. Danny Bones. Maybe we'll put them on a website in our new store coming very, very soon, by the way. They're not complicated. Because they're not complicated to produce and there's not a lot of value added in it, not a lot of intellectual property and intellectual productivity that goes into it, there's not a lot of revenue from it. Contrast that with technologically

sophisticated products. We'll keep it down to earth, iPhones, Samsung phones. These are technologically sophisticated products that require deep thought, deep thought in the processing capabilities, the camera technology. And for that deep thought and intellectual capability of people who put the deep thought into those products, companies have to pay a lot of money to people and research. Now, what the Chinese have done to really screw us over, and this is a very real problem, make no mistake, is they've said to these companies, all right, Mr. Technologically Advanced Smartphone Maker, you want to sell to China's vast market of a billion consumers, then you're going to give us that technology first.

And then what do they do? They steal it and start their own company. They start Joe's smartphones. Meanwhile, in America, it was Bobby's smartphones. And that's what they do. And American companies feel like they have to do it because then they miss out on the Chinese market while other people move in and sell there. This is a very, very real and destructive long-term problem.

Now, having said that, I want to give you a full scope of what's going on. Positives, negatives, everything. I want to give you the real news, not the CNN type news, okay? It's a devastating strategy. And it's a devastating long-term strategy but the down the downside for the chinese joe is even in stealing the technology they're selling over there they're wasting so much time stealing our stuff that they're forgetting the fact that it's the united states that's producing new stuff as they're stealing our old stuff. So it is devastating. Don't get me wrong.

But as for a permanent effective strategy for success, it's not a very good one. Although it does hurt. And we do have to fight back. One of the ways that this can be done is Feldstein had an interesting proposal. He said, you know, Trump is a very good negotiator. We've seen that from his business experience in the past. And when he met with Xi last time from China, they're now a lifelong leader after their last, you know,

Politburo-type election. They had a meeting about Chinese infiltration by their hacking network into our businesses in the United States. And according to Feldstein's report, Trump basically told him, you better cut that out. And according to Feldstein's report, he has no reason to be biased in it. He says that it did slow down significantly afterwards, according to his sources.

Now, we have a lot of economic cudgels against them, too, and I'm sure and I'll get to those in a second. Feldstein's suggestion is a simple one, Joe. Trump calls this meeting with China, tells Xi, hey, listen, here's how it's going to go down. We're going to make this now a big issue with the WTO, and we are going to agree that this is not voluntary. Because here's what the Chinese are saying, just so you guys understand, the ladies out there. The Chinese are saying, we're not breaking World Trade Organization trade rules because these transfers are voluntary. Joe, I'm giving Joe the wink and a nod.

They're voluntary. Meaning, you don't have to sell in China. We're not forcing you to transfer your technology to us. But by the way, if you come here, we'd really appreciate it if you did that. Wink it a lot. Of course it's not voluntary. Companies want to

compete on global markets, understandably, and want to sell to Chinese consumers just like anyone else. If a condition of selling over there is you have to transfer your technology, then an excuse can't be, well, we didn't force you to come here. It's not voluntary. So Feldstein said a very simple change, liberalizing those WTO rules to include that relocating over there and then demanding that is in fact a theft of of intellectual property that liberalizing those rules would make it easier to bring these cases and if trump's a good negotiator or basically shut these things down these joe voluntary tech transfers which are not voluntary okay i thought it was really good i think it's a good point

voluntary okay i thought it was really good i think it's a good point now if they don't do it here's my suggestion my addition to this you know it's going to stink and there's going to be a penalty to this for a little while and i have a big note here make sure you mention the consequences to the audience i don't want to give you empty vacuous nonsense we could tighten up our syphius rules uh on this syphius is one of is that council that was of course a big uh component of the uranium one investigation that approved the uranium one deal it's a council on foreign investment in the united states that's what it stands for you know there are ways we could probably tighten up those rules to deeply impact the chinese and their investment in the united states now the downside to this folks is remember investment in the united States. Now, the downside to this, folks, is remember, investment in the United States,

whether it comes from China or someone else, is money coming into the United States. Make no mistake. Now, a lot of you email, I say make no mistake because that's less money coming into the United States. If you viewed the United States as a business and I told you, hey, what are you,

you own a business, you own a donut shop? Yes, we're going to stop customers from coming in your door, you'd be horrified. Now, that would happen with the United States. I'm suggesting to you that that may be a viable option if they don't agree to cut the crap with stealing our intellectual property. But there is a consequence. Now, a lot of you email me. The reason I bring this up, and you've said to me on emails with regards to tariffs, hey, I'm willing to pay more to get back at the Chinese. Okay, that's fine.

You may be, but other people aren't. How do I know that? Because they're not, because people buy cheaper Chinese products. I'm just giving you the facts. But if you're willing collectively to take the short-term pain of foreign investment decreasing in the United States,

that may be a viable strategy. And I think in a perverse kind of way, that short-term pain may be worth it long-term to teach the Chinese a lesson that we're not going to let them steal our stuff. So there, I happen to agree with you. But I do get a lot of emails, Joe, by people saying, tariff the hell out of the Chinese. I'm willing to pay more. That's fine.

But other people aren't. I'm just telling you the facts. This made-in-China junk, a lot of it that they sell here, sells because it's cheap. People buy it. They didn't buy it. They wouldn't sell it here. I mean, I'm just giving you the facts,

however uncomfortable it may be. But again, I do agree with you, and it was a fair enough criticism that, all right, well, what are you suggesting? We sit back and let them kick us in the cabooses? No, hell no. Not at all. Stealing our value-added stuff.

That's why I started out with a description of value-added stuff. Rubber dog toys in relationship to iPhones. Folks, do we really care if they steal the rubber dog toy market? We don't care. We're America. We produce cars. We produce high-tech equipment. We produce high-tech management services, consulting, financial stuff. We produce some of the most valuable stuff in the world. Big Caterpillar-tech equipment. We produce high-tech management services, consulting, financial stuff. We produce some of the

most valuable stuff in the world. Big Caterpillar-type equipment. If they steal the rubber dog toy market, we don't want them stealing anything, but the truth is, it's not going to crush the American economy. If they start stealing technology for our next-generation

Air Force fighters, stealth technology, material science technology. Yeah, we'd be in real trouble. It would put some of our most valuable companies potentially out of business in the long term. So Feldstein's idea, Trump's sitting down with him saying, hey, here's the deal. Bottom line, I shouldn't say it's a bottom line up front because it's not up front, it's in the back. But bottom line is this. Trump tells China, here's the deal folks we are going to start bringing cases at the world

trade organization we are going to do some real damage to your investment in the united states if you don't cut this crap out you're going to admit that this is not voluntary and when you admit that this isn't voluntary then you'll it'll be a condition for trade a condition for trade that would probably be you know uh the wto would be overturned quickly and you guys would be in a world of trouble. Trump could shut this stuff down. If not, yeah, we do have to fight back. So I agree with you. Another point on this, a great article in the show notes today. It's a little wonky, so forgive me, but it's short. It's not long. It's at Reuters. It'll be at the show notes at Bongino.com, which, of course, I'll email you if you subscribe to my email list. Sorry to keep bringing that up, folks.

My apologies, but it does help us to build out our email list and keep the show producing the revenue to keep it around. So subscribing to my email list helps. Thank you. We don't sell your email, but we do put an ad at the top of the email. It's pretty short. It's not going to bother anyone, but it does help us bring revenue into the show to market it and get it out there.

There's a great article at Reuters about China's threats back to us. And I want you to show, I want to show you how empty one of them is. The Chinese are hinting now, Joe, that they have a lot of our treasuries. China's been loaning us money for a long time. They buy up treasuries, which are basically US debt. So the United States needs

to borrow money to fund its government because we spend an absolutely ridiculous, absurd amount of money. We're going bankrupt slowly but surely, and we're going bankrupt because people keep lending us money. It's hard to go bankrupt on your credit card to keep living off your credit card when your credit card calls you, Joe, and says one month, hey, we're shutting you down. Now, I'm not suggesting that a rapid shutdown of people lending the United States money would be a good idea. We would be in the willingness of people to lend us money would slowly force the United States government to be a little more prudent with how it spends money. Now, why do I bring this up?

Because if you read the Reuters piece, the Chinese are kind of hinting that, hey, listen, we own over a trillion dollars in your debt. We've been lending you money for a long time. We have a lot of, you know, there's a lot of IOUs to China. They're saying, hey, man, you know what? We may not lend you any more money. We may stop buying this stuff. And even worse, we may start selling off some of this debt.

Go for it, daddy-o. I say do it. Good. Good. Yeah, there'll be some short-term pain. Number one, interest rates will go up dramatically. Why? This is important you understand this.

The reason interest rates in the United States, for everything, mortgages, your interest rates are what? The fours? Mortgages? For cars? What are they? And depending on your credit, the interest rates are what? In the fours? Mortgages for cars? What are they? And depending on your credit, in the sixes to tens?

I mean, I got my rap there for like, I think 1% interest or something. It was ridiculous. You never used to be able to get that. Interest rates would go up. Why? Because we lend out money at an interest rate, at a cost.

That's the interest rate. If Joe's lending out money and Joe, excuse me, if Joe needs money, but Joe has really good credit, Joe may go to the bank. They may look at his credit and say, Joe, you have fantastic credit. We're going to give you a loan at whatever, 7% or 8%, okay? If Joe had horrendous credit or if I had horrendous credit and I go in a bank, right, and I say, hey, can you lend me money? They may say, yeah, we'll lend it to you, but for the risk of you not paying us back

because you have that awful credit, we're going to demand whatever, like loan shark type rates, 20%. The problem is right now, China is one of our, the biggest buyers of our debt. If China were to shut that down, we're going to have to start offering

higher interest rates to basically chum other people into the water to buy the debt we need to finance our profit-legate spending. But here's the reason. China has no... This is a total canard. They will lose big time here. If the Chinese stop buying number one great interest rates will go up a little bit it'll force the u.s government to stop borrowing as much money okay there'll be some interest rate hikes there'll be a little bit of short-term pain in the economy as cars get more

expensive in homes because the interest rates go up. Your monthly payments will be higher. But I just told you these monthly payments are artificially low because people keep lending us money and Democrats and hack Republicans who can't get their act together keep spending it. So I have no problem whatsoever

with the Chinese going, hey, we're not going to lend you guys any more money. Okay, fine. Secondly, China's saying, and we're going to screw everything up by selling all this debt we have now. Folks, that would destroy the Chinese economy. How? The value of their currency, if they were to sell their Chinese treasuries, the value of their currency would go up, making their

products more expensive. Now, China's battle now is to keep their manufacturing products cheap. That's the whole issue with the steel industry. They're selling us cheap steel under market prices, slave labor in China. If the value of their currency goes up, so does the cost of their products because they're denominated in Chinese currency. So their whole game of trying to undercut us and sell us cheap stuff under market prices, if they were to sell their holdings of U.S. treasuries,

their currency would go up in relationship to the dollar because they would basically have decreased demand for things denominated in our currency. Just understand that. Their currency would go up in relationship to ours, making their products more expensive. But keep in mind, their whole goal is the opposite, to keep their products super cheap. So benefit number one, it would maybe induce some sense of fiscal sanity amongst bankruptcy republicans and democrats who spend their way to death because the chinese and others keep lending us money to spend

second it would basically destroy their export driven economy because it would make all their products more expensive to us, which would be devastating. And third, here's a key one. It's a little wonky, but forgive me for starting the show with this today. But this is really important stuff because I'm getting tons of questions on this. China holds a trillion dollars in our securities. A trillion dollars. That is a lot of money.

That is a lot of money. By any measure, you are not going to get away with selling that, no question about it, without bankrupting your own holdings. Why is that? Because those securities, as interest rates go up, the value of them go down dramatically. So basically, whatever they're left holding, as they continue to sell off in dramatic fashion, the value goes down and down and down. I'm going to try to sum this up in one simple sentence because it is a little tough to understand sometimes. If you have a bond, Joe, and we're selling bonds at, say, a 5% interest rate, right? Meaning you buy this bond, you lend and we're selling bonds at, say, a 5% interest rate, right?

Meaning you buy this bond, you lend this money, we'll give you 5%. Right. If the interest rates go up dramatically and other securities are selling at a 7%, 8%, 9% interest rate, which one do you want? Do you want to buy the bond that gives you 5% or the bond that gives you 10%? The one that gives you 10, man. Right. The one that gives you 10, of course. So what's going to happen as the Chinese sell off us denominated assets,

they have an interest rates go up because now the U S has to offer higher interest rates to chum people into the water to buy the bonds. The Chinese aren't buying anymore. And as the Chinese flood the market with even more of these securities driving interest rates up higher, what does it do? the Chinese aren't buying anymore. And as the Chinese flood the market with even more of these securities, driving interest rates up higher, what does it do? It destroys the value of the bonds they're holding now

that they bought at lower interest rates. They're worth less because people don't need to buy them. They'll just buy the stuff from the United States at the higher interest rate. It is a basically threefold screwing of the Chinese economy done by themselves if they do this. You understand?

There are ways to fight back. And the Chinese are really, you know, they're screwed here. They have this significant trouble. If they think they're going to get out of this scot-free, they're not. And threats to sell the treasuries are really not threats at all. So I just want to make sure. I'm sorry if it was a little wonky today folks but uh i'm getting a ton of questions just a little bit just a little bit it was good all right it's understandable yeah all right cool all right today's show also brought to you by buddies at filter by somebody sent a

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Yeah. He had a lot of good stuff. I'm always afraid I'm going to miss something. Something happened in Wisconsin, Joe, you need to know about. There was a Supreme Court race, an election for the Wisconsin Supreme Court, and a liberal candidate won, but won handily. It was not an insignificant margin of victory, folks. It was upwards of 10 points in a race that should have been, yes, a lot closer. Matter of fact, I believe it's the first liberal Supreme Court justice to win an election there since something like 1995. It's been a while. Now, the Wisconsin, why does this matter to you? Why should you care about what happens in Wisconsin? Folks, these elections are starting to not look good at the state and local level. Democrats have been energized. They are coming out. They are voting for their people. Now, the good news is the Wisconsin Supreme Court is still four to three ideologically tilted towards conservative candidates.

The bad news is there's another election coming up in 2020 for a Supreme Court seat that was appointed by Governor Walker. What happens in Wisconsin, as we saw with Scott Walker's labor laws on forced unionization, what happens in Wisconsin can be a harbinger for what's happening nationwide. It's a swingy type state. It's not big cities, but midsize city type areas, rural areas. What happens in Wisconsin can be a harbinger for what happens nationwide. Democrat turnout was heavy. It was heavy. Matter of fact, turnout in general went up from 20% to 22%. And I can assure you that 2% increase was likely mostly Democrats in this race based on, obviously, the outcome or independents who are now leaning against Trump. We can't ignore this. Now, why is this important? These state Supreme Court races are one of the ongoing threads throughout the show.

Joe from day one has been liberals desire to fight and their desire to fight wherever they feel they can win. And I took a little note here. If they lose the presidency, they move to the House. If they lose the House of Representatives, they move to the Senate. If they lose all of those, they move to the states, the state Senate and the state House of Representatives. They lose those, they move to city council races. They move that, they lose those, they move to secretary of state races within the states. No, that's happening. That was a Soros project because they oversee the voter rolls. They lose that, they move into the culture.

They infiltrate academia, Hollywood, the media. Liberals never stop. And I keep an optimistic view all the time because I have suggested to you and will continue to throughout the shows now three years, that your only mission here on this planet is the fight. It was the title of my second book. There's no winning, folks. You're not going to vanquish liberalism. Your mission here is to suffer a little bit. You know, the old Bernard Malamud quote, right? The real path to true happiness is through suffering. You're here to suffer a little bit. You know, the old Bernard Malamud quote, right? The real path to true happiness is through suffering. You're here to suffer a little bit and fight. Life shouldn't be miserable for you, but we're here to fight.

This is the mission. You know, it's like playing for the Yankees, right? The minute you win the World Series, you know, what are you doing? You're prepping for spring training next year. You take maybe a day, right? I mean, you take a day or two off, and then you're like, okay, next season. I think in politics, we have this almost Manichean view, you know, good versus bad,

and eventually, you know, we'll vanquish the bad. You're not going to vanquish the bad guys. They never stop. Now, Wisconsin's important because Eric Holder was heavily involved. Eric holder the former obama attorney general the disaster of an attorney general was heavily involved in this wisconsin supreme court race why because they lost the presidency and now they're moving on to additional fights what's their additional uh their new fight now? Their new fight now is redistricting. They want states redistricted their House of Representatives congressional seats

in a different way that doesn't benefit Republicans. How are they going to do that? Well, the way states are redistricted now, every 10 years, there's a census. are redistricted now every 10 years there's a census and after this one coming up in 2020 and joe after that census they redistrict the states they redraw congressional maps why because populations increase populations decrease california and new york may lose some seats because their population may be shrinking texas may gain some seats and they redraw the congressional lines to make sure roughly 700,000 people fit in each congressional district. Does that make sense? This is done every 10 years. It's typically led by the governor in conjunction with the legislatures in the states. Now, who dominates the governorships now in the United States? Republicans, including in the state

Joe lives in Maryland, which is a liberal state where Larry Hogan is the governor. And if he gets reelected, he will lead the redistricting effort there. Now, surprising to no one, Joe, when Republican governors lead the states, the redistricting efforts are not designed to help the Democrats. True. They're not. And Democrats don't help themselves either by clustering in big cities. I'll explain that in a second.

But Eric Holder and Obama have always, this is their pet peeve. Obama talked about low turnout in midterm elections over and over and over during his two terms in office. He hated the fact, hated it, that when he was the president, he was constantly blocked by the Republican Congress. He hated it. He couldn't stand it. It drove him nuts. He talked about it all the time just google barack obama midterm elections he'd be like gotta turn out you gotta turn out it always upset him that turnout favored republicans in midterm elections they do it's an older electorate in the midterm elections

people who really pay attention to politics and a lot of younger people uh if it's not a presidential election joe don't show up those are just the facts the turnout facts so what they can't win this is my point about the democrats seamlessly moving from one fight to the next when they lose in elections which they did they lost the house of representatives because a lot of democrats weren't showing up now they want to do to courts, they want the courts to redraw congressional lines in the states, fearing they may lose governorships again in this 2020 census. And they want the courts to redraw the battle lines in each state to favor Democrats. And they will have those battle lines for 10 years. Because why? The next census won't occur until 2030, where they'll redraw the

lines again. Folks, the Democrats are terrified. Oh man, I can't tell you enough in this show, the why matters. They never do things by accident. Eric Holder is not making a mistake. He's not kidding around. He's not getting involved in a Wisconsin Supreme Court race, which they did. They spent heavily there. He's not doing it by chance. He's doing it because they want to overturn the Wisconsin Supreme Court. They want to redraw the lines in Wisconsin to favor Democrats, to put more Democrats in the House of Representatives so they can in turn not be blocked during midterm elections if a Democrat takes back the White House so they can do whatever they want. This is not being done by mistake. Now, the Democrats have two problems

in midterm elections. Two. Number one, low turnout, which hasn't, I just got done telling you, hasn't been a big problem since Trump has been in office because Democrats, they're upset. They're voting.

I just gave you the turnout numbers. It was up two percentage points in Wisconsin. The woman who ran and won the Wisconsin Supreme Court seat won by 10 points. That should have been a squeaker at best. This is not good news. So problem number one, because they're upset at Trump, has been overcome a bit. They turned out in the midterms. They turned out in a special, well, the midterms are coming up, but they turned out in the midterms. They turned out in a special, well, the midterms are coming up, but they turned out in special elections. They've been turning out so far, we've seen it. Even in that Ossoff race that they lost in Georgia, it was still a lot closer than

it should have been. Problem number two, though, for the Democrats is precisely why they need judges to redraw these districts. They want judges to start looking at this wasted vote thing, which I've talked about before, which is total, complete crap. The Democrats have problems in blue-leaning states, winning Congress seats at the federal level for a simple reason, folks. They live in cities, and they dominate cities. They all cluster in in cities look at a state like Pennsylvania oh why is he bringing that up because the state courts in Pennsylvania just redrew the lines to benefit Democrats huh wink and nod what I just told you Eric Holden wants to do everywhere this is why they're looking at state Supreme Court races now. The Pennsylvania Supreme Court just redrew the lines.

Pennsylvania is a blue-leaning state. At a marginal swing state at best. Yes, Trump won it, but he's the first one in a long time. I think since George H.W. H.W. It's been a long time. Pennsylvania is a blue-leaning state. Dominated by Pittsburgh, Philadelphia.

What's the problem with Pennsylvania, according to the Democrats? The problem with Pennsylvania is they had a lot of Republican congressmen. I forget the exact breakdown. Forgive me. But it was it was Republican leaning by far. And the reason is Pennsylvania is a rather big state, Joe, and Republicans spread out across the state. They live in rural areas, suburban areas, some in city areas, and Democrats don't. Democrats live largely in Philadelphia, Pittsburgh, and in clustered city type and around colleges. That's where they live. They cluster.

So what happens in these elections? they cluster this so what happens in these elections say you have a state with 10 congressional seats and all the democrats live in one big city what do you have you have a bunch of republicans scattered around that vote they win their nine congressional seats say 51 49 by outvoting democrats because republicans scatter themselves And then the overwhelming majority of Democrats that live in that one congressional seat, they keep winning. They win the seat show 99 to one, right?

Because everybody in the city is a Democrat, but a win is a win. That's a win is a win for them. A win is a win. If it's 51 49 or 99 to one, right? So the Democrats are arguing this nonsensical theory in the courts, Joe, of wasted votes. Like, hey, as you just said, they're saying a win is a win and we should have won in the

city 51-49 and you should have split the city up and spread the Democrats around. You can't. What are you going to do? Split up apartment buildings in Manhattan? It's not our fault that Democrats cluster in cities. But Holder thinks it's your fault. And Holder wants to make sure that the courts are the next battleground. I'm telling you, they move seamlessly from one arena into the next

and yeah you know i i bring it up because i got a couple emails yesterday a couple tweets and uh some people were saying hey you know i appreciate your optimism when you understand that your mission here if you believe in a higher power i know where my faith is i'm sure a lot of you know where yours is as well and you understand your mission is to fight this stuff, to fight for liberty and freedom wherever the fight takes you. If it takes you into tyrannical redistricting, if it takes you into a presidential race being fought against Chinese intellectual property theft, that's what you're here for.

Baseball, like a baseball season in the Yankees, can be a chore. You got to work out. You got what you're here for. Baseball, like a baseball season in the Yankees, can be a chore. You got to work out. You got to stretch before the game. It's exhausting. It's nine innings. But you do it because you love it, because that's what you feel your mission is, to play ball. Well, your mission's to play ball, too. That's what we're here for. It's no problem. All right, we lost in Wisconsin. So I'll leave you with this. Okay, get out and vote. There are midterms coming up. And not only that, folks, do the 10-10-10 rule. I used to give this speech on the campaign trail when I was running. Yes, your vote will probably not switch any

election, but it's important. Don't get me wrong. But it's probably not going to be decided by your vote. But if you all go out and do the 10-10-10 rule before these 2018 midterms, 10-10-10, meaning call 10 people. Call 10 people, urge them to vote. 10 people you know are on our side. All right, I don't want to call. I don't have time for that. Send 10 texts. Can you do that? Say, hey, this is important to me. You voting? I'll drive you to the voting booth. Make 10 Facebook posts. Send 10 tweets. Send 10 pieces of mail. I don't care.

But if each person magnified their voice by 10, we would match the Democrats are doing this. In case you think, oh, you know, I always got time for that. I got a soccer game. Folks, listen, I'm sorry. I don't want to hear it, okay? I really don't. Not that you would do that. I don't mean to sound in any way condescending, but I get up really early. I had to get up really early today. I do my show. I go right to the NRA TV show. I start putting together the NRA TV. I do the hit with Grant at one. I start putting

together the 530 show right after that. After the 530 show, I do the hit with Grant at one. I start putting together the 530 show right after that. After the 530 show, I went out to teach the CCD class last night. After that, I came back, had to do Laura Ingram and they beamed the lights in your eyes in my studio. I couldn't fall asleep till one. I had to get back up. So listen, no sob stories here. I got the greatest life ever. I love it. I'm here to fight. I'm here to play ball. I know my mission. But if you think the 10-10-10 thing is too much, how the heck do you think the Democrats bumped their turnout from 20 to 22 and won a Wisconsin Supreme Court race? They should have, if anything, won by one point,

they won by 10. Because that's what they're doing. Midterm elections are coming up. I got another nice email from someone. She said, you know, you'm in long island there's a race going on or long island as us long long islanders used to say if you're outside of of long island you should call it long island but if you live on long long long island you call it long island l-o-n-e g-i-s-E-G-I-S-L-A-N-D. Long Island. It's true. It's a great email, though. She's like, Dan, you're right about apathy. People think Trump got elected. Nobody's paying attention. There's a big race going on in Long Island now, and nobody knows about it. Okay. Thank you for the email. Awesome email. Let's get on that 10-10-10. You better start telling 10 people. Thank you for the email.

Awesome email. Let's get on that 10, 10, and 10. You better start telling 10 people. Folks, I fight with you. I'm involved in a thing now with the local congressman here and someone talking about running against them. And it's tough. I may lose friends over this, but the fight matters. So stand up.

Sorry. I know I spent a long time on that. My apologies. I have a lot to get to, too. All right. Let's read this last one. And then I got a long time on that. My apologies. I have a lot to get to, too. All right, let's read this last one. And then I got a few more good stories. Was that all right? I mean, I don't know. I mean, I really need people to understand how the Democrats move from one thing to the next.

And it's important. All right, speaking about the battle, one of the battles that's always fought is in our schools. You know, the Democrats, again, they move seamlessly into the schools to try to indoctrinate propagandize your kids and america's schools are nothing like we remember growing up we grew up in safety and learning was more important in safe spaces in this garbage propaganda and even though technology continues to offer new opportunities for learning i think we can all agree that our traditional moral values that were once woven into the fabric of the classroom have practically disappeared, sadly. That's why you need to consider our friends at Freedom Project Academy and their fully

accredited Judeo-Christian classical online school for kindergarten all the way through high school. We're talking about an incredible interactive education where students attend live classes every day with teachers and fellow classmates from across the country. These are live classes, folks. Freedom Project Academy doesn't accept a penny of government funding and allows them to stay committed to teaching students how to think, not what to think. Families, you can enroll your students full-time, or you could start with a single class, your choice, entirely up to you. Go to freedomforschool.com

and request your free information packet today from Freedom Project Academy. Enrollment ends in July, but classes are filling up fast. I got an email from Dave over there the other day. They are filling up fast. This is a very popular place. That's freedomforschool.com, freedomforschool.com. Don't forget to tell them that Dan Bongino shows up. Okay. There's something going on with this Russia case that's deeply disturbing to me.

The folks in the FBI, folks, walking you through a bit how these things start. The genesis of any significant criminal case is started by what they call an EC, or electronic communication. I was not in the FBI. I'm reading this off a Byron York piece that'll be in the show notes today. It's very good. But the electronic communication will be some log of how a case started. So if I was investigating Joe for felonious mopery, there'll be one of these electronic communications. And in that case, it'll describe some, the context of, by which I decided to investigate Joe. Remember within the FBI and elsewhere, we investigate crimes, not people. That's been my entire beef with the Trump case. They're investigating Trump.

They're not investigating a crime, which is entirely different. You don't walk into a police station and say, well, my neighbor investigated for what? I don't know, something. That's what's happening with Trump. Now, what's deeply disturbing about the Nunes memo is Devin Nunes, who's been trying to get this, essentially, we'll call it like the Genesis document from like Star Trek, Wrath of Khan. What started this whole thing? They can't turn over the document. And folks, although I have been encouraging you strongly just to take it easy on sessions while things are happening, do not take it easy on Rosenstein.

I don't know what is going on with Rosenstein. I understand his level of involvement in the Uranium One precursor case, and I understand he's deeply conflicted here. But you would think Rosenstein would desperately be trying to save face at at this point given the scathing public criticism of his awful work rosenstein is now the number two with the deputy attorney general but he's effectively the attorney general because sessions recused himself on the russia case which was a mistake joe can't or won't turn over the document won't okay but here's what they're doing yes they can absolutely but here's the beef they're turning it over with heavy redactions yeah again this is the scam so byron york lays this out what they're doing under rosenstein new nest says who's investigating this whole obamagate scandal

spying on the trump team says to the fbi the Justice Department, I want to see the document that started this investigation, folks, against Trump. This is critical. What started this thing? Because to this day, folks, nobody knows. There's a whole boatload of theories out there. The New York Times says it was Papadopoulos meeting Downer. Other people had other theories. It was Carter Page.

It was the dossier. Well, we can figure this out now. page. It was the dossier. Well, we can figure this out now. But the same old, same old with the Justice Department and the FBI stalling and delaying. Oh, and then they turn it over and then it's redacted. Folks, show us the darn documents. What is Rosenstein doing? My gosh, is there not a public interest in getting this case done and over with? Read the piece by Byron York. You'll be infuriated. It is deeply troubling. Turn over the EC,

this electronic communication. Let us know how the case started. We can solve this problem right now. Now, I don't like to leave you guessing, so here's what I think may be going on here. Oh, right. Yeah. I think that Genesis document that says how this started is going to indicate some deeply troubling things.

That's why the redactions are in there. I think it's going to indicate that the dossier, the Christopher Steele document and information from Sid Blumenthal, who was one of Hillary Clinton's consigliere's, was passing information on to the FBI through surrogates is going to be making an appearance in that document. I'm pretty darn sure of that. And then there's going to be the Bureau's going to have some heavy, heavy duty explaining to do, folks. This is going to be a really, really big deal. All right. That was an, I don't want to, I know, well, you know, we've rushed the thing out. But I just, that is important.

And it is breaking news. And I wanted to give you my take. That's why I think they're redacting it. That's what I think is in there. And I think they're going to be like, wait, let me get this straight. You started an investigation based on Hillary Clinton's political oppo and her buddy Sid Blumenthal's info? Yeah, kind of, sort of. It's important you know that. So read the Byron York piece in the show notes.

It's really good. All right, moving on. A lot of news to get to today. I got a nice email from a guy talking about this topic I've been bringing up about Scott Pruitt and EPA. I've been bringing up about Scott Pruitt and EPA and this bold move by the EPA and the Trump team to wipe out these mile per gallon standards as these Obama ones, which were unreasonable, which was killing our job market. He sent me an email. His name is Andrew. I'm not going to give his last name. So hat tip to you.

And he pointed out four or five even more disturbing things about how we handle car sales, miles per gallon standards, and fuel economy in the United States. He's like, Dan, not only are we forcing American car companies by these ridiculous miles per gallon standards to offset the building of their successful cars, the SUVs and the trucks, by building a bunch of crap electric cars nobody wants. Not only that, Joe, people get tax credits, which I neglected to mention for buying these electric vehicles. And the guy's like,

in the email, Andrew says, hey, brother, can you imagine you're buying a $100,000 Tesla? You know how rich you have to be to buy? I don't have a $100,000 car. I do okay.

My Raptor was, no, it wasn't close to $100,000. You have to be pretty darn rich to buy a $100,000 car. And then you're getting a $7,500 or whatever tax credit? Give me a break. So great point. So tax credit.

Meanwhile, your taxes are financing people buying six-figure cars. In some cases. Well, not all Teslas are $100,000. But it was a good point nonetheless. Some of them are quite expensive. Another thing he said, some of these companies that build exclusively these electric vehicles, excuse me, every vehicle has electronics. These electric vehicles, Joe, they wind up over these mile per gallon limits because

it's their electric vehicles and they can then sell these credits. He's like, this is the biggest scam ever. Because they then sell these credits to other companies. It's essentially pillaging the profits of other companies, American companies, that are making cars people actually want. Another point he brought up. Brilliant point. I love viewer emails. They're great.

Road taxes. Now, I'm not a fan of taxes. But this is a good point. Yeah. He's like, this is trouble right now because he has electric vehicles. Some of them get 60, 70 miles per gallon. And right now, road taxes are paid where?

At the gas pump. They're paid on certain amount of cents per gallon. Now, I'm not suggesting we should raise taxes. Please don't take this the wrong way. But he does bring up a good point. Because these electric vehicles, Joe, are so fuel efficient, they're not energy efficient because you still have to plug them in, which requires coal-fired power plants and other things to generate electricity.

But they are gas efficient. People aren't paying as much in gas tax, which is supposed to go into the roads. So now what's happening? You're having places like California that are saying, hey, you know what, we're going to ask you to report miles driven, and you're going to pay a tax based on miles driven, that not based on the gas you consume, because they're not consuming a lot of gas and not paying a lot of taxes. Now, that's fascinating. The big government in any state in California finding another way to monitor all of your behavior.

You know what's going to happen next? There's going to be like the big bad wolf. There's going to be a big bad driver tax. You have to report on your California state taxes. Joe drives 100 miles a day. Oh, my gosh, 100 miles a day. Joe, you're going to get a $10,000 surtax for being a big bad driver. That's next.

One more point. One of the best emails I've read in a while bad driver. That's next. One more point. One of the best emails I've read in a while. Very well done, Andrew. He says the electric grid. Folks, the electric grid right now is designed to handle surges. But surges within specific hours. Energy usage generally goes down at night.

Surges during the day. People come in, they turn on their the day people come in they turn on their lights you know they turn on their computers but with these electric cars joe that have to be charged overnight the electric grid is not designed to handle 24-hour loads like that the whole electric grid is going to be in jeopardy if we were to bump up electric car production and force one into every driveway another excellent point but really really good email about the damage this absurd i know i've covered it for a couple days right now but it's not just about as always on the show miles per gallon standards it's about more than that it's about environmentalists trying to force their

policies on other people it's about fake fuel standards. I say fake because, oh, yeah, we're using less gas. Okay, we're burning more coal to fire the plant that's sending the electric to your house to charge your car. What, did you think it was free? What do you think? We live in like the Infinity Wars and the Avengers where the Infinity Stones, you know, the Tesseract is charging your car? I mean, what are you, a knucklehead? They're not energy efficient. ethanol we're saving ourselves a ton of uh of effort having to dig all that oil out of the car yes we're wiping out cornfields we're destroying

engines and we're bumping up the price of corn so nobody can afford it nothing's free folks that's why i love this story so much. And I applaud the Trump administration for having the nerve to finally say, no, no, we are not doing a 54 mile per gallon standard by 2025. We're not doing it. It's a crap standard. You're going to put us all out of business. And one more thing, a different email this came from. Guy said to me, Dan, I work in the auto industry. Just let me tell you this right now. As fuel, you know, miles per gallon go up in the engineering, in other words, we produce an engine that gets, you know, 50 miles a gallon. He said, this is his email, I don't work in the auto industry.

I'm certainly not a mechanic. But he goes, trust me when I'm telling you, the quality of the engine goes down. He's like some of the best engines American car companies ever made are being phased out, not because they're bad engines, but because of fuel economy standards. Another thing, American entrepreneurialism. We build these big tough engines, and what do we do? We gotta scrap them because of a bunch of crap standards

environmentalists are imposing upon us. Unbelievable. Alright, let me check our time here. How we doing? Alright All right, good, good. I can fit in my other stories for the day. I'm going to start doing a little segment, by the way, on my NRA TV show at night, 5.30 p.m. Eastern, nratv.com, if you want to check it out. It's free, by the way. There's no paywall or anything. But I think I'm going to do a little segment on citizens speaking out. I was inspired today watching a couple videos in Escondido, California, of citizens speaking out against these sanctuary state policies.

And then another guy, someone sent me an email of a guy speaking out, I think it was in North Carolina, against potential new gun laws. Joe, it is an awesome speech. I'm going to put some of that on my NRE TV show tonight. We will call it Citizens Speaking Up. Citizens dancing a little bit. Dance, folks! We love it. We love it. All right. Let's do this

one first. I got an email from a friend yesterday I work with, and she asked this question I'd never considered. I don't usually talk about my Secret Service time on the show because who cares? But this may be interesting and i thought it applied uh to some of the people out there she i got an email from this this woman i work with and she said you know i'm curious with this shooting at the youtube headquarters and everything that's been going on

with this workplace violence she's like why don't more of these companies focus you know heavily on security i mean these these are relatively easy solutions to solve. Access control, get an armed guard. Why don't more of them do it? And my answer surprised her. As a matter of fact, she responded back in all caps. Very interesting. I have a lot of experience in this security arena, in the public and private portions of it.

And one of the reasons I found, this may shock you, that a lot of companies, I'm not going to say don't care about security, but Joe, they do this. Yeah. I'm putting my hands in front of my face. They don't want to know. They prefer the ignorance is bliss approach. Yeah. See no evil. See no evil, hear no evil, therefore don't have to pay for no evil if you knew evil before. Here's what I mean. You ever see anyone go with this? I have friends, former Secret Service

agents, I'm not going to say who or any of the companies, but who were called in to do security surveys for places like hotels. Hotels call them in and go, listen, we want you to give a look around using your Secret Service experience, check out our cameras, our system. Can you give us a

survey? Maybe draw up a 10-20 page report, whatever it is about the holes you find. About two or three days in, management of the hotel calls him up. Bye. Former Secret Service agent Joe, thanks for your time, pal, but we're not going to need that report.

Thank you. You sure? I'm almost done. No, no, we're good. Matter of fact, do not email it to us under any circumstances, but thank you. Have a nice day. What? Yeah, what is right? I think the woman I emailed this back to was surprised too.

Folks, the reason they do that is a lot of these companies, they have no idea how bad their security is. Why would they? They're not security professionals. Folks, listen, with all due respect, there are levels of security. There's training that goes into like an eight-hour security guard course. God bless you. You're not knocking anybody. Don't take it the wrong way. But to be a secret service agent, conduct a foreign presidential advance in a terrorist hot zone or war zone, I'm telling you, even after 10 years of training, I was still learning new things. It is unbelievable. Electronic countermeasures, taking drones drones down multi-layered security subterranean security how to handle the skies and air picture awax every i mean this is

unbelievably complicated using all of that stuff took me a decade to learn how to do it i was still learning new stuff yeah the people in these hotels and other businesses they don't they don't know so they think that the secret service guy joe is going to come in and say oh your security's okay make a couple you know changes here put a camera there and it'll be good maybe cost you five thousand dollars then the guy comes in or the woman and they do an evaluation they're like hey um you see your you know water system down there you know the chain's broken so a terrorist could come in and could shut off the water, the hotel. You see your HVAC system on the roof.

Yeah, you don't have a secure access point up there so a terrorist could walk up on the roof and put an airborne pathogen in there. You see your camera system. Yeah, you don't have any kind of a night vision capability. You're taping, but you're overriding this stuff after every 20 days and you never know, you could have a crime reported later. Your doors, the way they open out. You don't have crash bars in this.

I don't know if this is fire code or not. All of a sudden, Joe, two days into it, the hotel's thinking, lawsuit, lawsuit, lawsuit, lawsuit, lawsuit, lawsuit. No, thanks. Hey, secret agent Joe, have a nice day. I'm not kidding. I have friends who have been cut in the middle of a job. They've actually paid them to do the whole job and said, get the hell out of our hotel right now. This is the reason when you see things like the YouTube stuff.

And I don't know what their security was. I'm just saying. It's a fair question. I thought maybe my audience would want to know that. was. I'm just saying, it's a fair question. I thought, you know, maybe my audience would want to know that. A lot of these companies don't want to know because they're afraid that once the document is out there about the holes in their security plan, if something happens, some entrepreneurial lawyer is going to go, hey, can we see that document you did two years ago about how crappy your security is? Because there was a shooting in your hotel and apparently you knew your cameras sucked and you did nothing about it so we'd like five billion

from you by the way that's what they're afraid of so that's why to answer the question for the audience that was asked by this co-worker of mine that is why there is an ignorance is bliss approach to private security generally in the united States. Because a lot, not all, but a lot of companies just prefer the ostrich approach. Don't tell us, therefore we can't be sued later on. I'm not kidding. I have friends, many of them, who have been let go in the middle of a gig. Told, no thanks, have a nice day. We'll pay you double to get out of our hotel and never come back ever again all right last story i got a couple minutes left but it's a this is an important one really great piece by david french at national

review uh you know david's been an interesting guy if you google his history but he's not a big trump guy obviously that's okay i mean people have different approaches to stuff but it's a really good piece well done he writes some really good stuff. It's an article in National Review where he, how do you say this? Debunks a debunker? You know, I love debunking. And if you go to Bongino.com today, Matt has another new piece on Matt Palumbo, my resident debunker in the debunk this section about the Kansas tax cuts. You may not care about that, but you should because the liberals use it as an example

every time of why tax cuts fail They don't fail, but if you read Matt's piece you'll understand what happened in Kansas And it's important, but French does is he debunks at the bunker Nicholas Kristof right wrote a piece in the New York Times Entitled how to win an argument on guns basically giving giving people the mental ammunition of the Liberals to fire back Yeah, you know it's almost comical against conservatives yeah when it comes to the gun debate well french debunks his nonsensical arguments and in short i'll just wrap it up quickly for you because you can read the piece it's very good though he says well you know conservatives will tell you you know cars kill more people with guns

so why don't we ban cars and kristoff's approach is, well, you know, we already have significant regulations on cars. Okay, there's already significant regulations on guns, too. You can't buy a gun if you're a seven-year-old in a gun store. You still have to fill out a 4473. There's still multiple categories of prohibited possessors. Joe, kind of sounds like cars, doesn't it? Yeah, it does, Dan. Prohibited possessor of a steering wheel.

People who have a history of drunk driving, who have their license revoked. You have an age limit. Sounds kind of like, I don't get what. So your argument is what? Nicholas Kristof's argument against people who say, you know, well, you know, cars kill more people than guns. We don't just ban cars.

Your argument is to what? Then come back with data showing how cars are regulated. Guns are regulated guns are regulated too what are you talking about so french does a good job with that he also does a good job you know debunking this other myth about suicide which is always tragic but christoph says listen your friends will say well you know conservatives will argue a lot of those gun deaths are suicides which they are christoph's come back to that trying to debunk the conservatives is well you know in places where they put those bridge protections up

so you can't jump yeah suicide rates go down so therefore bridge protections work so therefore taking away guns would somehow prevent suicides but french writes a really great rebuttal to that, saying, oh, that's interesting, Nick, because suicide rates in the United States are really, really low, globally speaking, comparatively, and gun ownership is very, very high. So you're almost debunking your own argument that it's the equipment

not the... What's wrong with you? But of course, you know, don't, you know, rely on liberals to use facts and reason. That left them a long time ago. But read the piece. It's short. It's sweet. It's a really good one. It's a national review.

Be up at the show notes today at Bongino.com. And don't forget, keep submitting your dance contest. You can email us at the website, email, tweet, whatever you want. We're almost done with our winners, but keep submitting them. And watch my show tonight, NRATV.com, Amazon Fire, Roku, and Apple TV, 5.30 p.m. Eastern Time. We stand with Dan Bongino. See you all later. You just heard The Dan Bongino Show.

Get more of Dan online anytime at conservativereview.com. You can also get Dan's podcasts on iTunes or SoundCloud. And follow Dan on Twitter 24-7 at DBongino.