--:-- Georgia Howe: Welcome to Morning Wire, I'm Georgia Howe.
--:-- John Bickley: And I'm John Bickley, Editor-in-Chief of Daily Wire. It's Thursday, October 19th.
--:-- Georgia Howe: Controversy on Capitol Hill over President Biden's choice for the U.S. ambassador to Israel. We discuss what the nominee's critics and supporters say.
--:-- John Bickley: It's vital we have a strong American ambassador in Jerusalem. Mr. Liu is precisely the person we need.
--:-- Georgia Howe: It's bad for the United States. It's bad for Israel to have an Iran sympathizer as their ambassador to that country.
--:-- John Bickley: And despite persistent inflation, Americans' spending is still through the roof. People are not going to pay their credit card loans. They're not going to pay their mortgages. They're not going to pay their honor loans. You're already starting to see that.
--:-- Georgia Howe: Thanks for waking up with Morning Wire. Stay tuned. We have the news you need to know.
--:-- Georgia Howe: On Wednesday, President Biden touched down in Israel amid the country's ongoing war against Hamas and as anti-Israel and anti-America riots erupted in surrounding countries.
--:-- Cabot Phillips: Hey, Cabot, so a lot has transpired in the last 24 hours. Walk us through some of the latest developments out of the Middle East.
--:-- Cabot Phillips: Yeah, so Biden's trip came as tensions in the Middle East are at their highest point since the terror attacks of October 7th. That is in large part due to an explosion at a hospital in Gaza on Tuesday evening, which we discussed yesterday.
--:-- Cabot Phillips: Throughout the day Tuesday, social media was awash with claims that Israel had bombed that facility, and Palestinian officials claimed the alleged airstrike had killed over 500 civilians.
--:-- Cabot Phillips: Within hours of that news breaking, mass riots had formed outside of American embassies across the Middle East. In Turkey, for example, the U.S. consulate was attacked with fireworks and Molotov cocktails as a mob attempted to breach the compound.
--:-- Cabot Phillips: The riot was eventually broken up with tear gas and water cannons, but not before over 40 police officers were injured. A similar scene unfolded at the U.S. embassy in Beirut, which really looked like a war zone Wednesday night, as rioters set fire to the compound, and clashed with police while crowds chanted "FU America."
--:-- Cabot Phillips: The State Department ordered an evacuation of all non-essential employees in the city and issued a separate level four travel advisory ordering Americans not to travel to Lebanon.
--:-- Cabot Phillips: Similar riots broke out in Baghdad, Jordan, Iran, and Tunisia, with the alleged attack on that Palestinian hospital seemingly serving as the catalyst.
--:-- Cabot Phillips: So the Middle East is really heating up right now.
--:-- Cabot Phillips: Yeah, it really is. And now it's clear that Israel was actually not responsible for that incident.
--:-- Cabot Phillips: Exactly. So despite headlines from the New York Times, Washington Post, and countless other legacy media outlets who blamed Israel for the tragedy, all evidence now points to the explosion being caused by a misfired rocket from within Gaza.
--:-- Cabot Phillips: On Wednesday morning, the White House announced that, quote, based on analysis of overhead imagery, intercepts, and open source information, Israel is not responsible for the explosion.
--:-- Cabot Phillips: Videos released by the IDF show a large number of rockets being launched from within Gaza while most make their way into Israel one can be seen sputtering out and crashing into the vicinity of the hospital setting off a series of secondary explosions.
--:-- Cabot Phillips: The Israeli government has also released a series of intercepted radio conversations in which Hamas terrorists can be heard discussing the failed rocket attack blaming it on members of the Palestinian Islamic Jihad, that's a separate terror group operating in the region.
--:-- Cabot Phillips: During his meeting with Prime Minister Netanyahu, President Biden addressed that tragedy saying, quote, the other team was responsible for the attack, referring to Hamas.
--:-- Cabot Phillips: I was deeply saddened and outraged by the explosion at the hospital in Gaza yesterday. And based on what I've seen, it appears as though it was done by the other team, not you.
--:-- Cabot Phillips: But look, there are still those who continue to insist the attack actually came from Israel.
--:-- Cabot Phillips: Leading the charge on that front is Michigan Democrat Congresswoman Rashida Tlaib, who tweeted shortly after the explosion that, quote, Israel just bombed the Baptist hospital, killing 500 Palestinians.
--:-- Cabot Phillips: Despite the overwhelming evidence to the contrary, Tlaib has not only left that post up, she has continued to double down.
--:-- Cabot Phillips: Speaking at a large protest outside the Capitol Wednesday afternoon, she again repeated that now debunked claim.
--:-- Cabot Phillips: Continue to watch people think it's okay to bomb a hospital with children.
--:-- Cabot Phillips: And we should note that protest spilled into the Capitol Wednesday afternoon as protesters held a demonstration in the House office building.
--:-- Cabot Phillips: Capitol Police made a number of arrests before restricting access to the building for the remainder of the day.
--:-- Cabot Phillips: And remember, Tlaib was facing pressure from GOP lawmakers over her response to the initial terror attacks on the 7th.
--:-- Cabot Phillips: And this latest defense of the terrorists really further turns up the heat.
--:-- Cabot Phillips: There are rumblings in Washington that Republicans in Congress could make an attempt to expel her.
--:-- Cabot Phillips: So keep an eye on that in the coming weeks.
--:-- Georgia Howe: Yeah, we certainly will. Now let's get to the president's meeting with Israeli leaders. What did we see on that front?
--:-- Cabot Phillips: Well, the president was clear that he was there to reiterate America's support of Israel.
--:-- Cabot Phillips: In public remarks, he offered condolences to the Israeli people before urging the country to show restraint in their desire to retaliate, referencing the mistakes America made following 9-11.
--:-- Cabot Phillips: I caution this while you feel that rage, don't be consumed by it.
--:-- Cabot Phillips: After 9-11, we were enraged in the United States. While we sought justice and got justice, we also made mistakes.
--:-- Cabot Phillips: And coming out of his meetings with top officials there, Biden announced that Israel had agreed to allow humanitarian aid to enter Gaza through the Egyptian border, with the understanding that all materials would be subject to inspections and must go to civilians and not Hamas.
--:-- Cabot Phillips: Biden also announced $100 million in U.S. funding for humanitarian assistance in Gaza and the West Bank.
--:-- Cabot Phillips: But there are questions about whether that money will ultimately be seized by Hamas.
--:-- Cabot Phillips: Now, the trip was supposed to include a stop in Jordan, but following the hospital attack, Jordanian officials who blamed Israel expressed outrage and canceled their meetings with Biden.
--:-- Cabot Phillips: So he ultimately flew directly home last evening.
--:-- Georgia Howe: Yeah, so still a lot left up in the air for President Biden.
--:-- Cabot Phillips: Cabot, thanks for reporting.
--:-- Cabot Phillips: Anytime.
--:-- Georgia Howe: In the aftermath of the bloodiest day in Israeli history, the Biden administration has nominated Washington veteran Jack Lew to serve as the new ambassador to Israel.
--:-- John Bickley: But critics say that Lew is soft on Israel's enemies and is not the right man for the job.
--:-- John Bickley: Jack Lew is an Iran sympathizer who has no business being our ambassador.
--:-- Amanda Presta-Giacomo: Hey, Amanda. So first, tell us about this nominee, Jack Lew.
--:-- Amanda Presta-Giacomo: So Lew is a senior member of the Obama administration. He served as chief of staff and then treasury secretary during Obama's second term.
--:-- Amanda Presta-Giacomo: He's been in Washington for decades starting as a legislative aide in the 70s and then becoming special assistant to Bill Clinton in the 90s.
--:-- Amanda Presta-Giacomo: This ambassador position has been vacant since July, and Lew was nominated by Biden last month.
--:-- Amanda Presta-Giacomo: And the clear rush to have this hearing now is due to this conflict between Israel and Hamas, the terror group, correct?
--:-- Amanda Presta-Giacomo: Exactly. And Democrats are saying it's why Lew must be confirmed quickly, too.
--:-- Amanda Presta-Giacomo: There were reports of Wednesday that American citizens are still stranded in Gaza with little help from the embassy.
--:-- Amanda Presta-Giacomo: And remember, during the initial attack, Hamas took nearly 200 hostages, including at least 13 Americans.
--:-- Amanda Presta-Giacomo: The U.S. is expected to work closely with Israel as it goes into Gaza to get them back.
--:-- Amanda Presta-Giacomo: Now, for Lew's part, trying to shore up this confirmation, he's called Iran a threat to Israel's existence and says he'd fully support Israel against Hamas.
--:-- Amanda Presta-Giacomo: Here's some of his opening statement from the confirmation hearing on Wednesday.
--:-- Amanda Presta-Giacomo: At this moment, there is no greater mission than to be asked to strengthen the ties between the United States and Israel, to work toward peace in a region that has known so much war and destruction.
--:-- Amanda Presta-Giacomo: Now, there has been some pushback against Lew because of his past work in the Middle East, specifically in connection to the Iran nuclear deal.
--:-- Amanda Presta-Giacomo: Can you unpack that for us?
--:-- Amanda Presta-Giacomo: Yeah, sure thing. So this was a big point of contention.
--:-- Amanda Presta-Giacomo: Liu was a key player in that controversial 2015 Iran deal negotiated by the Obama administration.
--:-- Amanda Presta-Giacomo: Critics said that deal gave Iran a clear path to nuclear weapons and freed up frozen assets the regime could use to finance terror groups.
--:-- Amanda Presta-Giacomo: Here's Republican Senator Tom Cotton criticizing Liu for his role in that deal.
--:-- Amanda Presta-Giacomo: He helped Iran evade American sanctions and he lied to Congress about it.
--:-- Amanda Presta-Giacomo: He defended the Obama administration's refusal to use our veto at the United Nations in the final days of the Obama administration to protect Israel from anti-Semitic resolutions.
--:-- Amanda Presta-Giacomo: I know Democrats are saying that we need to confirm Jack Lew quickly to show our support for Israel.
--:-- Amanda Presta-Giacomo: I would say it's the exact opposite. We need to defeat Jack Lew's nomination to show that we have a new approach to Iran.
--:-- Amanda Presta-Giacomo: Another GOP senator, James Reich, similarly went after Liu during the hearing on Wednesday.
--:-- Amanda Presta-Giacomo: This whole thing's about Iran. And holding hands with Iran under the table doesn't work for me.
--:-- Amanda Presta-Giacomo: And now with the claims that Iran was involved in some ways with the October 7th assault, these claims about Liu have particular weight, correct?
--:-- Amanda Presta-Giacomo: Absolutely.
--:-- Amanda Presta-Giacomo: The Wall Street Journal released a report after the terror attacks claiming that senior Iranian officials helped plan the invasion.
--:-- Amanda Presta-Giacomo: That report cited senior members of Hamas and Hezbollah, another terror group backed by Iran.
--:-- Amanda Presta-Giacomo: U.S. officials have not corroborated those claims, although even if they weren't directly involved, Iran has been arming and training Hamas for years and at minimum enabled the attacks.
--:-- Amanda Presta-Giacomo: All right, so where are we now? What's expected to happen with Liu's nomination?
--:-- Amanda Presta-Giacomo: Well, the Senate Foreign Relations Committee will vote on this next week, and it looks like Liu has full support from Senate Democrats.
--:-- Amanda Presta-Giacomo: This should be enough to get him over the finish line.
--:-- Amanda Presta-Giacomo: although we won't know for sure until the vote.
--:-- Georgia Howe: Right. Well, a crucial position, particularly at this moment.
--:-- Amanda Presta-Giacomo: Amanda, thanks for reporting.
--:-- Amanda Presta-Giacomo: You're welcome.
--:-- Georgia Howe: Though inflation remains high, the Bureau of Labor Statistics released a stronger jobs report in August.
--:-- Georgia Howe: We also saw a surprising uptick in consumer spending in September.
--:-- Kenny Polcari: Hey, Kenny. So first off, where does inflation stand right now? Can you go over some of the recent numbers?
--:-- Kenny Polcari: Yeah, so inflation has come down. Let's be fair. Inflation has come down, right? It spiked to a high of 9.4% about a year ago.
--:-- Kenny Polcari: It has been steadily coming down. But the fact is that inflation still exists.
--:-- Kenny Polcari: So prices continue to go up just at a slower pace, right? There's a difference between deflation and disinflation.
--:-- Kenny Polcari: Deflation is when they actually start to go negative. We haven't gotten there. Disinflation is when the pace of price increases just starts to slow, which is where we are now.
--:-- Kenny Polcari: I think the latest CPI number was 3.7%, which was a tad bit higher than what they had expected, which again is not good because that just suggests that inflation is starting to rear its ugly head again and could potentially start to push its way higher.
--:-- Kenny Polcari: Now, paradoxically, or maybe not, retail sales actually ticked up in September.
--:-- Kenny Polcari: So Americans are still shopping.
--:-- Kenny Polcari: There was also a hiring surge in August.
--:-- Kenny Polcari: Those are some of the indicators I know Wall Street types like to look at.
--:-- Kenny Polcari: So it's very interesting. Let's talk about the hiring surge.
--:-- Kenny Polcari: You know, we were expecting 150,000 new jobs on the first Friday when they report that number.
--:-- Kenny Polcari: In fact, it came out at 350.
--:-- Kenny Polcari: Do you realize that 150 jobs were part-time jobs? They weren't full-time jobs.
--:-- Kenny Polcari: They were part-time jobs.
--:-- Kenny Polcari: Now, does that mean that people are now going out getting two jobs because they have a full-time job?
--:-- Kenny Polcari: Now they're getting a part-time job just to keep up.
--:-- Kenny Polcari: I would suggest that is the answer, right?
--:-- Kenny Polcari: That the part-time jobs are an increase because people are trying to struggle ahead.
--:-- Kenny Polcari: Your other part of the question was?
--:-- Kenny Polcari: So we had the hiring surges and then retail sales.
--:-- Kenny Polcari: Okay, so retail sales came out yesterday.
--:-- Kenny Polcari: So we were looking for up two-tenths.
--:-- Kenny Polcari: It came in up seven-tenths.
--:-- Kenny Polcari: And they were going, oh, look at how great the consumer is.
--:-- Kenny Polcari: The consumer is so strong.
--:-- Kenny Polcari: Let me tell you something.
--:-- Kenny Polcari: The consumer is spending more money, but they're actually buying less because of what inflation has done.
--:-- Kenny Polcari: So you're going to go out, you're spending $10 or $20 more at the grocery store every time you go, or you're spending $10 more to fill up your car.
--:-- Kenny Polcari: You didn't buy more gas.
--:-- Kenny Polcari: You bought the same 16 gallons of gas.
--:-- Kenny Polcari: But because you paid more, you are spending more, but you're not buying more.
--:-- Kenny Polcari: And that's the issue.
--:-- Kenny Polcari: And so I think yesterday's number, while they kept talking about, look how strong the consumer is, I actually think that that's a falsehood.
--:-- Kenny Polcari: Because I don't know about you, I'm not necessarily buying any more, but I feel like I'm spending more money just trying to buy the stuff we need, right?
--:-- Kenny Polcari: The support of family.
--:-- Kenny Polcari: Although the one exception to that might be the miscellaneous store retailers.
--:-- Kenny Polcari: Those things like office supplies, florists, gift shops.
--:-- Kenny Polcari: Those were up 3%.
--:-- Kenny Polcari: Yeah, you know, that was a curious number.
--:-- Kenny Polcari: And I haven't been able to really figure that out, the miscellaneous stuff, you know.
--:-- Kenny Polcari: I was trying to think, okay, is it the holiday?
--:-- Kenny Polcari: It's not really the holiday yet, although we're coming into the season.
--:-- Kenny Polcari: Was it Valentine's Day?
--:-- Kenny Polcari: It was a Valentine's Day.
--:-- Kenny Polcari: So why the uptick and things like that?
--:-- Kenny Polcari: I, for one, cannot explain that.
--:-- Georgia Howe: Right. Well, it'll be interesting to watch that number as we get into the holidays.
--:-- Kenny Polcari: Kenny, thanks so much for joining us in studio today.
--:-- Kenny Polcari: You're very welcome.
--:-- Georgia Howe: That was Kenny Polkari, managing partner of Case Capital Advisors.
--:-- Georgia Howe: That's all the time we've got this morning.
--:-- Georgia Howe: Thanks for waking up with us.
--:-- Georgia Howe: We'll be back this afternoon with more of the news you need to know.
--:-- Georgia Howe: Thank you.
