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tv   The Situation Room With Wolf Blitzer  CNN  July 28, 2022 3:00pm-4:01pm PDT

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kentucky's governors expects hundreds will lose their homes and more rain is expected tonight and tomorrow. follow us on twitter and instagram and facebook and the tiktok if you miss an episode, listen to "the lead" from where you get your podcasts. our coverage continues with mr. wolf blitzer in a place i like to call "the situation room." happening now, the justice department is preparing for a court battle to force top trump white house officials to testify about their conversations with the former president on and around january 6th. stand by for exclusive new details on this new phase in the criminal investigation. and it's official, the u.s. economy shrinks again. raising fears of a recession. but the white house is pushing back. i'll speak with former treasury secretary larry summers, who sounded an early warning on inflation last year.
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also tonight, there's growing frustration inside the biden administration right now, as the kremlin refuses to engage with a u.s. offer to exchange brittney griner and paul weelan for a russian arms dealer. i'll speak with a key white house official john kirby. welcome to our viewers here in the united states and around the world. i'm wolf blitzer. you're in "the situation room." let's get right to cnn's exclusive new reporting on the u.s. justice department's criminal probe into january 6th. federal prosecutors preparing to fight in court to force former white house officials to testify about their conversations with then president trump. our senior crime and justice reporter kaitlan po lance helped break the story here in the situation room. this could be the clearest sign yet that justice department is honing in on trump's efforts to
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prevent a peaceful transfer of power. walk us through your exclusive reporting. >> well, wolfe, evan perez and i are learning from several sources tonight that the justice department is getting ready to go to court to try to get access to conversations that donald trump had in the white house around january 6th. so the reason this is arising right now is that there were privileged claims or executive privilege claims that were shielding a little bit of what people were hearing from trump in those crucial days, people specifically that we knew have gone to the grand jury before. greg jacob and mark short, two top adviser to mike pence, they testified to the grand jury. we're talking about a possible court fight that could be coming. the justice department is preparing for. that's some legalese and procedural stuff, but this is really a very, very big deal because this puts the investigation squarely in the white house looking at donald trump's statements and actions themselves. it also is something that's very
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aggressive for the justice department to want to prepare for a court fight knowing that donald trump is probably going to challenge this in court. it's something the mueller investigation didn't even do when they were trying to get access to what was going on. we are seeing this now coming about, looking for it, related to january 6th in this criminal investigation. >> it's very significant, indeed. you have some new reporting, i understand, involving someone with ties to jeffrey clark and john eastman and this individual is cooperating with federal authorities. tell us about that. >> that's right. so this is a lawyer named ken klukowski, he was a direct report to jeffrey clark at the justice department when clarke was trying to draft some letters to georgia, he had klukowski work with him to try to overturn the election as trump wanted him to do. what we have learned today and i was able to confirm through a statement from his lawyer that he is fully cooperating with the justice department investigation, as well as the house select committee investigation, and that the
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justice department executed a search warrant on his electronic materials a few weeks ago. now we already know that the justice department was getting data out of john eastman's cell phone. they were searching jeffrey clark's home. this is another piece of that puzzle and a cooperator instead of someone who might be fighting against the justice department. >> very significant as well. kaitlan, stand by. want to bring in our senior analyst elie honig, elliott williams and ryan nobles, he's up on capitol hill. just how significant is this new development we just reported? >> well, wolf, this tells me that doj is bracing for battle, that they're willing to go into court in order to fight to get access to these high-level and potentially quite damaging conversations between donald trump and his advisors. now we know that these legal battles can take time. we've seen them take over a year in similar contexts. it's really incumbent on doj to push the judges here to exbe tight diet. we've also seen these rulings
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come down in similar context in a manner of months. wolf, this tells me that doj understand the importance of these conversations, if they're going to be making decisions about whether potentially to indict or not indict, donald trump or other key advisers have to have all the facts. these are among the most important facts and worth fighting for. >> it's interesting, because this potentially could bring about one of the first major court fights over the separation of powers in the january 6th criminal investigation. how do you see . >> when courts have considered these in the context of criminal cases, they haven't really looked favorably toward the white house. the biggest and the most obvious one is the united states versus nixon in 1974 where this went all the way to the supreme court and the supreme court found that executive privilege, this privilege that exists among the president and his senior advisers, cannot be used in an absolute sense to shield the president from criminal
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liability. there's some complicated questions here. number one you're dealing with a former president. number two, you're dealing with staff to the white house and the vice president. number three, none of these have been resolved. needless to say when it has come up, it hasn't looked good for the white house. we'll see. >> we certainly will. is this the clearest sign yet that we've seen that the former president of the united states may actually be a target of this criminal investigation? >> well, wolf, that word target is something that usually come into play at the very end of an investigation. we can't say that donald trump is target here. this gives us some sign posting about where we are. it signal that's it is a little early in the investigation. they did get information out of greg jacob and marc short in the grand jury. because this fight would be gearing up, those two witnesses may need to come back later. that there would be things to learn, to help the justice department decide if donald trump would become a target.
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>> clearly the justice department is moving ahead quickly. ryan, you're up on capitol hill. you have some new reporting about the house select committee's investigation. they seem to be zeroing in on former trump cabinet official as well. tell us what you're learning. >> that's right. just today they met with nick mulvany. he was an envoy in europe on january 6th. they're focusing on a number of other cabinet officials. we're told they're engaging with the former secretary of state mike pompeo and they've also attempted to set up something with the former director of national intelligence, john ratcliffe. this goes in addition to the other cabinet secretaries they've talked to. the former acting defense secretary, chris miller, jeff rosen and others. and i'm told that part of this is trying to delve into the conversations related to the 25th amendment after january 6th. and the efforts that were made
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by some cabinet officials to at least consider that based on trump's actions on january 6th. now, mike pence's former chief of staff marc short shut that down saying there wasn't enough time to truly consider the 25th amendment. it was something the then vice president wasn't interested in. just those conversations could be a great interest to the committee as they look into donald trump's conduct at that time. the conversation you're having as it relates to this, they found unique and creative ways to work around privilege claims and to the point some of your panelists have made about court fights, when this has been test in the general, they have won the test save for mark meadows who was not prosecuted for criminal contempt. the committee has found a way to get around it. we'll have to see if the department of justice has the same success. >> it is very significant. why would the 25th amendment to the u.s. constitution, and i
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just reread the 25th amendment to the u.s. constitution, be of particular importance right now to the select committee. >> i think the history behind it. a few years after the assassination of john f. kennedy, and the concern was, what if god forbid there's another attack or something horrible happens to another president and he's rendered so incapacitated physically or mentally that he's unable to serve. it says that if you get the vice president and the majority of cabinet, you can temporarily take powers away from the president. given the historical context, a truly incapacitated president, the fact that it was being considered, discussed at all among cabinet members tells us how dramatic and important that situation was. >> let me get elliott to weigh in. what do you think? >> picking up on his point from a moment ago. wasn't just marc short weighing in on. mike pence himself wrote a
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letter to nancy pelosi in the days, i believe, after january 6th, also very much pouring cold water on the 25th amendment. i'm really looking to see what these former cabinet officials say. did they seriously have conversations about it? did they approach the president about it? a number are actual insiders and loyalists to the president so they may not be that useful providing testimony to the committee or potentially a grand jury. we'll have to see. >> we shall see. thank you very, very much. just ahead, growing fears right now of recession as new numbers show the u.s. economy continuing to shrink. many americans think we're already there. we'll talk about it with former treasury secretary. stand by.
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alarm bells are ringing for the u.s. economy showing economic growth falling again. cnn white house correspondent has the growing fears of a recession as well as a major deal to pass of president biden's agenda. >> that doesn't sound like
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recession to me. >> reporter: as the the u.s. economy shrank for the second time this year, president biden focusing on the bright spots. >> we have a record job market, record unemployment of 3.6% today. businesses are investing in america at record rates. there is no doubt we expect growth to be slower than last year, and the rapid clip we had. that's consistent with a stable steady growth and lower inflation. >> reporter: biden's pushback coming as the latest gdp report showed the economy shrank by nearly 1% last quarter. the second consecutive decline fueling fears of a recession, or among some republicans that claim the u.s. is already there. sgr moments ago, new data confirmed what a super majority of americans already knew. democrats have plunged america into a recession. >> reporter: leading economists disagree, including the federal
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reserve chairman jerome powell. >> i do not think the u.s. is currently in a recession. the reason is, there are just too many areas of the economy that are performing, you know, too well. >> reporter: while the economy flashed warning signs, biden getting a boost from an unlikely place. congress. >> so far we have 217 yes votes. the house has passed it. >> reporter: the house passing a major bill to boost u.s. semiconductor production. in the senate, joe manchin and chuck schumer struck a surprise deal to advance a health care and climate spending bill. >> it's a big deal. >> reporter: that bill would represent the largest investment combatting climate change with $369 billion in energy and climate programs. including electric vehicles and clean energy tax credits with the goal of reducing carbon emissions 40% by 2030. the bill would also empower
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medicare to negotiate prescription drug prices, impose a 15% minimum tax on corporations, and eliminate the carried interest tax loophole. >> this will reduce inflationary pressures on the economy. >> this is a bill for the country. not just for democrats. >> reporter: president biden speaking today with chinese president xi jinping. amid rising tensions over taiwan. tell two-hour call turning tense, according to chinese state media with xi warning, if you play with fire, you get burned. urging the u.s. to, quote, abide by the one china principle. the white house -- >> i'm not going to speak to that statement. the united states strongly opposes unilateral efforts to change the status quo, or undermine peace and stability across the taiwan strait. >> reporter: and on the economy, the white house has been preparing for over a week now for those alarm bells to
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potentially sound today. they knew full well that today's gdp data might show a second quarter, prompting allegations by republican that's we are already in recession. they pushed back talking about the strong jobs market but ultimately the white house isn't just confronting this definition of a recession. they're also confronting public sentiment with the overwhelming number of american believing economic conditions are poor. wolf? >> at the white house for us. thank you. right now, i want to bring in the former u.s. treasury secretary, larry summers. i want to get his reaction. thank you for joining us. as you heard, the the president of the united states, the treasury secretary, the federal reserve chair, they are all saying the u.s. is not, not in a recession. you haven't been shy calling them out in the past. are they wrong? is the u.s. in a recession right now? >> i think the overwhelmingly
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likelihood is that we're not now in a recession. it's not a recession when the number of jobs is growing. it's not a recession when total spending and a variety of categories is growing. but to be frank, i think we are going to find ourselves in a recession before too long. that's the likely consequence of the overheating of the economy that we suffered, and the federal reserve is doing what's necessary and right to restore price stability. so i think the president is right, they are right that we're not in a recession right now. but i think the odds that we'll achieve, the proverbial soft landing, are not very high. >> how soon do you think that could be? when do you expect the u.s. could enter a recession? and how bad, mr. secretary,
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could it get? >> it could happen any time from several months from now to a area or a year and a half from now. and look, economic forecasts are always probablistic. we might avoid it. i think it is probably three in four that we'll have a recession in the next two years. no reason why it needs to be like the great financial crisis. no reason why it needs to be like for those my age who remember the 1982 recession when unemployment got to 10%. no reason it has to be anything like that. but i don't think it will be a walk in the park. i wouldn't be surprised at all to see the unemployment rate rise above 6% if we carry through on doing what is necessary to restore price stability. just like it is a big risk, wolf, when the doctor
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antibiotics. if you don't take the full course, you just quit when you start to feel better, you regret it down the road. i think we've got to do what's next to push inflation out of the system. that will require chairman powell to be very determined in the way that paul volker was very determined 40 years ago. i've been sorry to see voices saying, oh, my god, we might have a downturn in the economy. the fed has to stop acting. that is a prescription for long term stagflation. >> yeah, the karol. federal reserve is moving quickly. moving interest rates as he did yesterday as well. it was only two weeks ago that the democratic senator joe manchin of west virginia crushed president biden's hopes for a sweeping climate and economic deal. citing rampant inflation. that's what he was doing doing then. reportedly, he talked to you. what did you say to senator manchin to change his mind?
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>> well, wolf, i never talk about my private conversations with political leaders. but i've been making the argument for quite some time that the right public investment program is not inflationary and can contribute to reduction inflation. and i think the deal that senator manchin and the majority leader schumer reached, meets that test in three ways. it reduces demand because it will bring down the budget deficit over time because unlike what we did a year and a half ago, we are raising more revenue than we're increasing spending so we're taking funds out of the economy. we're putting direct pressure on prices that are too high. that's what the measure is about. pharmaceuticals, to use the government's purchasing power are all about. and we're taking a set of steps
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that will expand the availability of energy and reduce the price of energy, and that means people will hoard less. they'll hold smaller inventories because they won't be looking for big price increases and that, too, will contribute to lower prices. so i believe that this is disinflationary policy that is also going to make the economy more efficient. it will preserve the environment, and also, will make us have a fairer society. so i think this is a very positive bill. i think we're in difficult circumstances because of the mistakes that we've made. but i think this is a valuable step forward. >> it looks like it has the votes right now. we shall see. thank you as usual for joining us. >> thank you, wolf. coming up, a flip response from russia right now to the u.s. offer to get brittney griner and paul whelan released
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through a prisoner exchange. we'll talk going the administration's frustration. john kirby is standing by live. we'll discuss right after this. to support that village. ♪ ♪ i am peter akwaboah, chief operating officer for technology, operations and firm resilience. when you think about diversity, the employee network group is fundamental to any organization to provide a community and a belonging environment for the employees. they provide an avenue to support employees and ultimately it leads to retention of the best and brightest. the employee network represents the community at large, and it provides a good feedback loop to senior management to make the appropriate decisions, which ultimately contributes towards the bottom line. if you're thinking about growing your business, if you're thinking about driving the business forward, inclusion is a strong part of this.
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a flippant response from moscow tonight about the u.s. offer to exchange a convicted russian arms trafficker for detained americans, brittney griner and paul whelan. saying the foreign minister sergi lavrov will pay attention to antony blinken's request, and i'm quoting, time permits.
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joining me, john, thank you for joining us. the russian foreign minister can't even find the time for a phone call with secretary blinken to discuss this proposed prisoner swap. the russia showing it has the upper hand here? >> reporter: no. i think russia is showing a lack of seriousness to what is a serious offer that the united states put forward. sadly, thiskind of rhetoric, the kind of snark, the the kind of sarcasm that we've seen foreign minister lavrov exert before. but look, we're focused on a serious proposal that we made and we want to see russia act in good faith on that serious proposal so we can get brittney and paul home to their families where they belong. that's what we're focused on. not trying to make public points in the press with a sarcastic comment. >> what has russia said about this proposal? have they given any indication they're actually open to negotiating on this exchange? >> i want to be care.
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because we don't want to negotiate in public. there is a proposal out there but we don't want to go into too much more detail than that. i think you can see that we are putting foorth serious proposal and quite frankly, wolf, have put it on the table. it's been weeks since that proposal was made. that we're serious about it and we haven't seen a satisfactory response to it from the russians. >> at least not yet. cnn reports that president biden actually overruled the u.s. justice department's opposition to this prisoner swap. does this embolden adversaries of the united states to take even more americans hostage, knowing the u.s. is willing to make these kinds have trades? >> without getting into the specifics of the proposal, and i don't want to confirm any of the reporting out there about what this proposal looks like. i can tell that you the president carefully balanced the national security needs with his responsibility as commander in chief and president to work on getting americans unjustly
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detained overseas, back home. we'll work each case individually and differently. they need to be treated that way. it is always a balance, always a factor in how you consider you'll move forward with the given negotiation. this is a serious responsibility. the president is taking it seriously. >> let's home these americans are coming home soon. i want to turn to china while i have you. in his phone call today with president biden, the chinese president xi jinping issued a warning amidst tensions over the house speaker nancy pelosi's possible trip to taiwan saying, and i'm quoting now. if you play with fire, you get burned. are you bracing for a possible military response if the speaker does go ahead with this trip to taiwan? >> well, i won't get into speculating or i'm athletic cals here. i won't react to rhetoric we've seen out of the chinese before. this is not new rhetoric. the president believes that the best way to manage this most
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consequential of relationships is through open lines of communication. that's why he wanted to have his conversation. it is really important to be able to have those lines of communication, particularly on issues where there's tension and some differences of opinion, and of course, there are some differences of opinion over what is going on with respect to the tensions over taiwan. the president was clear. nothing has changed about our policy. it stays the same and nothing has changed about our desire to not see the status quo between the straights there. upset by unilateral force or action either way. the president has been nothing but consistent. there is no reason for this to devolve into conflict because our one china policy has not changed. >> president and i and the president spoke for nearly two and a half hours on the phone. >> it was a wide ranging discussion. it would be hard to pick one sloo and say they spent the bulk of the time on one thing. they talked about the war on
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ukraine, human rights, climate change. there was an awful lot on the agenda. a very, very full conversation. >> john kirby, thank you for joining us. just ahead, the president biden taking a victory lap too soon after joe manchin announced his support for a major piece of the biden agenda? i'll ask the democratic senator amy klobuchar whether her party actually has the votes to pass this legislation. the hottttest? (fisher investments) nope. we use diverersified strategies to position our client's portfololios for their long-term goals. (other money manager) but you still sellll investmens that generate high commissions for you, right? (fisher investments) no, we don't sell commission products. we're a fiduciary, obligated to act in our client's best interest. (other money manager) so when do you make more money, only when your clients make more money? (fisher investments) yep. we do better when our clients do better. at fisher investments, we're clearly different.
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when i make decisions as a leader, it's not about me or the folks that are here. it's about the next seven generations coming behind us, making sure that they have the ability to move forward. prop 27 will help small rural tribes like mine get a seat at the table will be transformational for my tribal members. taxing online sports betting gives us an opportunity to really enhance the lives of our tribe and strengthen the future of our people. vote yes on prop 27. president biden is hailing a major breakthrough for his domestic agenda. a surprise deal with senator joe manchin on energy, climate, health care and more.
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but it's still not clear if democrats have the votes to get it passed. let's discuss with amy klobuchar. thank you for joining us us. the president certainly saw -- >> great to be back on. thanks. >> the president certainly sounded like he was declaring victory today. do you have the votes right now to pass this legislation? are all 50 senate democrats on board right now? >> i believe we have the votes, wolf. senator schumer who patiently worked on this bill negotiated with senator manchin for months and months. he knows where the votes are. a lot of these things have been negotiated in the past. you know senator sinema is reviewing the bill. she just got it. i will say the really important focus of the bill on climate is something she's always been supportive of. that is a major investment in climate change, as well as getting to a 40% reduction in greenhouse gases by 2040 --
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2030. i think we are well on the way when we're at 40% by 2030 to getting where i want to be, which is net zero by 2050. that's number one. number two, the pharmaceutical part, i've been leading this part for years. finally, we'll take the curse off of our law which says that on behalf of 46 million seniors, the medicare can't do anything to negotiate prices. and the fact that we've opened this up now, lifted the ban that was written into law by the pharmaceutical industry 20 years ago, that is a major, major part of this agreement with aarp at our side. so as you can tell, i'm pretty excited about what we're going to do next week. >> but senator sinema is still refusing to say whether she will support this bill. what is your message to her tonight? >> i don't need to give her a message on the air. i know she's reviewing it. she's talking to senator schumer. as i said, she was supportive, she was part of the negotiation
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on the pharmaceutical part of it. i would have gone farther than that, as you know, a few months ago. she was part of that negotiation and has been in the middle of a lot of these negotiations in the past. so i just know that given her state of arizona, that climate is a big issue there. they've had fires there. they know how important it is. so she simply is reviewing the bill. that is a pretty normal thing for a senator to do. >> while the bill certainly does include a lot, it does not include universal pre-k. it does not include lower childcare costs or paid family and sick leave. what do you say to democratic voters who are disappointed that congress and the president haven't done more on the things you promised to do. >> i say election is right around the corner. and we have an opportunity to add to our numbers in a big way in the u.s. senate, cwhich woul allow us in my mind to get a lot of these things done. the other thing i would say is i'm someone who has been working
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on the pharmaceutical issue for a long, long time. for me, when you look at the cost that people are dealing with right now, this is one of the major ones. we are not giving up the fight on anything. we have to deal with high costs for people. while the republicans may like to go into an empty chamber in the senate and give a bunch of speeches and go after people, politicize it. we're actually getting something done. that's why i'm so excited about moving forward next week on this agreement. >> senator, a recent cnn poll finds 75% of democratic voters and democratic leaning voters want someone other than president biden to represent their party in 2024. given those numbers, and as someone who ran against biden in 2020, do you think he should step aside and let somebody else run? >> you know what? i think he's made it clear. he is running and that's what is happening right now. i will say this. he's on the cusp of some major
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victories. let's look at what has happened. we just passed the chips bill through the house. that will allow our country to finally start making chips again. these are the semiconductor chip that's we need in our cars and our phones. we're down to 13% that we make and this will allow to us add incredibly high paying jobs to our country. we have a chance of getting gay marriage passed in the next few weeks. it already got through in the house. we are taking on a major battle in terms of protecting a woman's right to choose. we have the burn pit bill which the republicans just stupidly stopped last night. i can't even explain it. it maybe jon stewart did it the best, where we have our veterans that are depending on us to help us with their health care. something the president and the democrats in congress have been pushing for, and i believe beat get that done. i don't think they can explain to the veterans groups why they would have stopped that bill. then this.
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finally taking on the pharmaceutical industry which for years thought they have owned washington. guess what, they don't. so to me, that is a pretty good way to go into august. >> thanks so much for joining us. >> great to be on. thank you. coming up, the latest on the unfolding disaster in kentucky right now. the governor there calls it one of the most significant deadly floods ever to strike the state. [whiff] [water splashes] is it on the green? [goose squawks] i was just looking for my ball. 19thth hole, sam adams summer ale. [goose squawks] (here you go.) (cheers guys!)
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many, many more have been missing and the governor has called in the national guard to help with search and rescue efforts. cnn meteorologist tom has the latest for us. one official said he's never seen this much rainfall. >> and wolf, it was just tuesday that historic rain in the st. louis area. it will likely be the tenth billion-dollar finally disaster the u.s. has had this year. two days later it happens again. the same weather system. overnight, frightening. just like in st. louis, one thunderstorm after another moving across the same region. producing six and a half, seven and a half, eight and a half inches of rain in a matter of hours. this is coal country. southeastern kentucky. floyd, perry, down toward harlan county. it is very hilly. when you have torrents of rain in a short amount of time, it just runs down the hills and hollers to the creek beds, the
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stream. those streams and creeks grew very quickly. already a high flow rate. now it is into the larger rivers. this looks very linear. just like it did in st. louis. one thunderstorm after another in the same area. 24-hour totals. up to eight and a half inches. you toss in the last few days and you're up to ten and a half. this is just out of your mind doctorsness with two days this week to have rivers like this. 1957, the kentucky river had a record of 14.7. they shattered it by over six feetful warnings are still in place. watches are in effect. the same weather system from st. louis to kentucky is still meandering across the region. there will be more rainfall in the area tonight. st. louis, wolf, had more water rescues today, picking up more rainfall. in fact, even children at a daycare center had to be rescued. this front will me andier around and it will drop more rain in the same region and to the west.
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more states, west virginia, north carolina, tennessee. >> a dangerous situation indeed. thank you very much. >> a dangerous situation indeed. thank you, our meteorologist tom sater. and now, donald trump at the donald trump golf trump where there is a saudi-backed golf tournament and big names also participating. we go this with christine brennan, and what do you make of the former president involved in this controversial saudi-backed tournament? >> it is par for the course, to use a golf term, wolf. i think that trump did not want to miss this. i was up there yesterday covering the actually just the practice round and the press conferences at the liv golf at
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trump national, and it is trump's name is all over it, and of course, he is showing out, and of course he wants to be part of it, and the controversy inherent in this of course, as you well know, it is just an hour's drive from trump's course in bedminster, new jersey to ground zero, and we know that 15 of the 19 hijackers were saudis and of course, osama bin laden was saudi as well, and the people who perpetrated the horrors on the united states, and it is vintage trump, but it is politically risky that if you want to be associated with something so close to home, especially, wolf, as you know in that part of the country where the nerves and the emotions are still so raw all of these years later. >> they certainly are. and in the latest column, you are right, christine, the players are turning the blind eye to saudi arabia human rights abuses, and guilty of what i am calling you sports watching, and
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explain what you mean by that. >> as i said, wolf, i was at the press conferences yesterday. a golfer named paul casey, a european ryder cup veteran and the best known of the three up there, and i asked him a question, and the other two now, and with the forum, and the platform they have with the saudis and mbs would they speak out on behalf of women's rights and the rights of the gay people, and the lgbtq people in saudi arabia, and we know how awful the track record there is, and he immediately, paul casey talked about playing golf with the 17-year-old saudi girl, and never otherwise addressed the girl, and when i followed up about gay people, he said that he knew nothing about the issue, and could not talk about it a.45-year-old man saying things exactly the way that saudis want to hear them. >> christine brennan, thank you for joining us. >> and we will have more news just ahead.
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tonight, american makers of the semiconductor chips are about to get a major boost after the u.s. house of representatives passed a bill which should significantly increase their manufacturing right here in the united states. cnn's miguel marquez has a closer look at one american company making the critically important chips. >> reporter: it is enormous. global foundries and semiconductor chip plant in new york. >> in this factory, how many chips are being made for products? >> we can produce roughly 1 million chips per day. >> reporter: the fab where the chips are made is about the size of six football fields and the process is so sensitive that one human hair could gum up the works and even the light has to be exposed. >> any exposure to ambiant light
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will affect the production. >> reporter: the chips go to cars, computer, video games, communications technology and the defense industry. >> we are at half a trillion right now in the chip production, and conservative, by 2030, we will be at a trillion. >> a trillion? >> yes, a trillion dollar industry, and when we double between now and 2030. >> reporter: the chips call for a billion dollar production here at home, and 18 states now produce the chips and they could benefit from the funding. the global foundries started to produce the chips here in 2012, and new york state kicked in $2 billion to help the country to secure another $13 billion to build the plant and today, employing 3,000 employees with a median salary of $90,000 at just this one plant, the expected effect of the chips act funding
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act. >> we expect to double in capacity. >> reporter: doubling in capacity and adding up to 1,000 jobs and many of them high paying and all of them a boon to the area. in the last decade, how has the economy changed? >> it has just grown. it is almost -- >> reporter: leaps and bounds? >> it is almost sort of a bubble. >> the dividends are found like a ripple through the shops and the restaurants and the taverns. >> reporter: and some conservatives argue that the government should not be in the business of subsidizing the industry, and the industry says a lit bill of public financing goes a long way. >> the proof is in the pudding, and look at the facility, and the number of jobs, and the taxpayer return, and 2x, 3x, 4x with the state. >> reporter: and the industry started by america, and the industry essential to the tech conmy, and the industry is essential to the nation's defense, and the industry that the u.s. would like to dominate again. now, look the industry
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executives say that america's biggest competitors in the area, china, eu, korea and japan, they have collectively put together about 280marked that and they say that the competition is great and the money is just as great, wolf. >> miguel, excellent report, and thank you very much to the viewers and thank you for watching. erin burnett "out front" starts now. "outfront" exclusive, are federal prosecutors preparing for battle trying to force the former white house officials to testify about conversations with trump, himself? and the clearest sign yet that the investigators are zeroing in on the former president. and plus, president biden with a major win today and on the cusp of two others and are the republicans suddenly playing defense. and massie flooding in kentucky and towns under water,
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