202. Is Trump Rigging the World Cup?

6 Jul 2026 · 50 min · 17 chapters

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In short

The episode argues that Donald Trump is using presidential influence to bend FIFA rules, undermining the “rules-based” international order, and that this pattern mirrors broader U.S. dysfunction. Key example: U.S. striker Folarin Balogun received a red card vs Bosnia-Herzegovina, which would have suspended him for the round of 16 vs Belgium; the White House (including Trump) called FIFA President Gianni Infantino, and FIFA reversed the suspension. Hosts claim this creates a two-tier system and damages America’s reputation and “soft power,” even if it helps the U.S. team. They compare it to past high-profile reprieves and criticize Infantino’s proximity to Trump (e.g., a FIFA “Peace Prize”). Second half: “DOGE” spending cuts are portrayed as ineffective and harmful—claimed $215B savings disputed; USAID damage cited with estimates of 600,000–800,000 deaths.

Guests

none. Hosts are Katty Kay and Anthony Scaramucci; they reference Cara Swisher, Rio Ferdinand, Gary Lineker, Stephen Walt, Mark Carney, and Mamdani (Mayor Eric Adams is implied).

Written by AI. May contain mistakes. Listen to the episode to check what was said.

Chapters

Tap a time to open that second in VO

July 4th Reflections

0:45 to 1:44

The hosts share their experiences of July 4th celebrations.

“I mean, you know, but go ahead, go ahead, guys.”

Upcoming Topics Overview

1:44 to 2:14

Discussion of topics including the World Cup and FIFA.

“And now I have to get back to politics and feel a little bit less happy.”

Trump's Influence on Soccer

2:14 to 3:34

Exploring Trump's meddling in FIFA and soccer decisions.

“And a little bit about Mamdani's speech, which I thought was interesting too.”

Controversy Over Red Card Reversal

3:34 to 5:54

Discussion on the implications of Trump's influence on FIFA's decisions.

“Okay, so Donald Trump has now been meddling in the World Cup.”

Implications for International Relations

5:54 to 8:14

Analysis of how Trump's actions affect America's global standing.

“And America now looks like there's one rule for America and one rule for the rest of the world that is playing at the World Cup.”

Historical Context of American Power

8:14 to 10:05

Reflection on the evolution of America's influence in the world.

“And they were seeing it from a position of pride as opposed to, yeah, duh, she would not have called up Infantino in order to bend the rules to get a red card overturned.”

Current Global Leadership Dynamics

10:05 to 13:14

Discussion on the need for new leadership in the global order.

“The Chinese claim it was taken from them.”

Infantino's Role and FIFA's Future

13:14 to 14:00

Critique of FIFA's leadership under Infantino and its implications.

“spoke about last week and where you're seeing rules being bent in the way that Mark Carney has spoken about.”

Trump's Influence on Soccer Governance

14:00 to 22:45

Explore the implications of Trump's influence in soccer and its effects on American credibility.

“He's he's running a favor exchange with a client list of one head of state, Donald Trump.”

Doge's Impact on Government Spending

23:24 to 28:00

Discussion on the effectiveness and consequences of the Doge initiative in government spending.

“Look, it's going to be ahead of the midterms.”
Show all 17 chapters

Budgeting and Congressional Accountability

28:00 to 30:20

Explore how the U.S. budget process has changed and its implications.

“So what used to happen was the president would submit its budget to the Congress.”

The Impact of Political Decisions on Spending

30:20 to 36:26

Discuss the consequences of cuts to social programs and research initiatives.

“So is that what it was about, politics, not really about economics?”

The Future of U.S. Fiscal Policy

36:26 to 39:50

Analyze the potential long-term impacts of current fiscal policies on America.

“Yes, his people were fighting with him over it.”

Reactions to a Polarizing Speech

39:50 to 42:00

Examine the reactions to a recent impactful speech on budget deficits and immigration.

“So, Katty, let me just ask you this question if you don't mind.”

Dueling Political Arguments for 2028

42:00 to 43:35

Explore the contrasting political narratives shaping the future of American politics.

“into the country who have the right skin color and the right tone of voice and the right accent and that that is unoriginal of them and weak of them.”

Influence of Communication in Politics

43:35 to 45:09

Discuss the unique communication skills of political figures and their impact on public perception.

“socialists of America have candidates from that party have the same communication skills as Mamdani.”

Public Sentiment on Trump and the American Dream

45:09 to 45:46

Hear firsthand accounts of public feelings regarding Trump and the state of the American dream.

“but I'm telling you, it's going to resonate with people in the have-not space in America.”
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Transcript

Automatic transcript. May contain errors.

0:07Anthony Scaramucci:Welcome to The Rest is Politics US with me Katty Kay in barmy London. No, hot London, actually Anthony. Very hot London. Where are you?

0:18Katty Kay:Well, I'm in my house in the Hamptons, but I'm also in the land of Donald Trump where he's making AI generated memes of himself, getting our players back on the playing field. So I know we have a lot to talk about, but I was watching his Truth Social this morning and I'm like, this guy is really in another world, you know, and he's just, and everyone around him is just like, hey, no problem, just let him do whatever he's doing. He's the president of the United States, guys. I mean, you know, but go ahead, go ahead, guys.

0:48Anthony Scaramucci:As well as saying Georgia Maloney needs a restraining order put on her as well. I mean, he's really jumped the shark this weekend. Well, I'm a bit sad because I had a great July the 4th. I went to a super nice small town parade in Maine where there was no politics. Everyone was very cheerful. It was quite moving, actually, Anthony.

1:10Katty Kay:I saw the hot dog.

1:11Anthony Scaramucci:And I ate a hot dog.

1:12Katty Kay:I want to confirm for everybody that you did eat the hot dog.

1:15Anthony Scaramucci:Yes. Well, am I allowed to make a confession since it's just between you and me and no one else is listening? I actually only had one bite and then I gave it to my son and he demolished it in about two seconds. Yeah.

1:27Katty Kay:You know what, by the way, you didn't even have to tell me that. I had the under on the full hot dog. You didn't even have to tell me that. That was like Captain Obvious, Mrs. Obvious.

1:38Anthony Scaramucci:I loved my July the 4th. The parade in Maine was just the best and I felt very happy. And now I have to get back to politics and feel a little bit less happy. So here's what we're going to talk about. We are going to talk about the World Cup and FIFA and Donald Trump meddling in everything, including soccer and his ability to overturn FIFA's ruling on the red card that had been given to an American player. We'll get into that. And then in the second half of the program, we are going to talk about the end of Doge, which by the way, happy July 4th. That was actually the end of Doge. You may have missed it.

2:17Anthony Scaramucci:And a little bit about Mamdani's speech, which I thought was interesting too. So, Anthony, first of all, before we get, I guess, before we get into Donald Trump and the World Cup, we have to say it's coming home, right? Well done, England. Were you up all night watching? I was on the plane, so I didn't manage to see it, but I wish I had done.

2:36Katty Kay:Well, I didn't. No, I'm on this side of the pond. That was like a primetime game over here. No, that ended around 11 o 'clock, but I watched the whole game. And obviously, I'm not as familiar with the game as you are, but super impressed with Team England. And I just wrote an op-ed, which I'll share with everybody. Maybe we'll put it in the newsletter about how, as Americans, we have a license to root for more than one team or to cheer for more than one team. And, you know, so I would be cheering for the Italians, but they're not in it. They haven't been in it the last three times. So I was wearing an English.

3:12Anthony Scaramucci:So it's an adopted Brit. You're now cheering for England.

3:14Katty Kay:Well, yeah, I was wearing the jersey. I took some heat from the Scots like Alistair Campbell, but I was, you know, I feel like England has been very good to me, Caddy Kay. Okay, so I was wearing the jersey and cheering for them. But Americans, because we're all hyphenated, we can cheer for two teams and get away with it.

3:33Anthony Scaramucci:Okay.

3:33Katty Kay:And by the way, Alistair is writing into our blog saying how upset he is and what a traitor I am. He's not happy.

3:39Anthony Scaramucci:We are actually going to talk about that in our episode for founding members in our question and answer if you'd like to hear about the beef that Alistair Campbell has with Anthony Scaramucci over the jersey that he was wearing at the England game. You can see that. Okay, so Donald Trump has now been meddling in the World Cup. America's top goal scorer, Follerin Balogun, was sent off during the World Cup match against Bosnia-Herzegovina last week, which means that he would have been suspended for the next game, which is a round of 16 game against Belgium. But the White House, including Donald Trump, called up FIFA President Gianni Infantino to review the suspension and FIFA on Sunday announced that it was going to reverse the call and Ballo, as his name, Balogun, will be able to play in the game against Belgium.

4:36Anthony Scaramucci:I think this raises a whole load of questions. First of all, I mean, I know that there was controversy about the red card in the first place and did the VAR slow it down so much? And some people have said, including Rio Ferdinand, that actually he should never have been given a red card and that it was okay for the red card to be overturned. But I think it sets a terrible precedent, Anthony, that you can have the president of one country can call up the FIFA president and basically get a ruling overturned. I mean, now every country that's had a red card called against them. England had a red card at the Azteca Stadium.

5:08Anthony Scaramucci:What? We're going to get the king now calling up Donald Trump and saying, oh, you know that state visit, that unprecedented second state visit we gave you? It comes with a cost. And the cost is a get out of jail-free card for our England players. I mean, I don't know where this is going to stop, but clearly all of that flattery that Infantino has done to the Trump administration has now somehow paid off for the White House because they've managed to get Ballot back on the pitch. And maybe he should have been on the pitch anyway. But a red card is a red card and to have it overturned, I think, makes people start thinking, as you and Cara Swisher were saying, by the way, She was great last week.

5:48Anthony Scaramucci:Thank you, Cara, for filling in for me and letting me have some time with my family in Maine. But as you guys were talking about, it makes people think there's a two-tier system. And America now looks like there's one rule for America and one rule for the rest of the world that is playing at the World Cup. What do you think?

6:02Katty Kay:Well, one rule for Trump. I mean, so let me channel him because I think it's important for people to understand him. You know, I made$2.2 billion. Do you want to know why? Well, why, Mr. Trump, Mr. President? Well, because I'm a genius and all the other presidents are idiots. It would be stupid for me not to do this. And so therefore, that's why I did it. And all the other presidents are stupid. And so why didn't they have a money grab for themselves and their family to the tune of several billion dollars? Kamala Harris wouldn't have called Infantino and asked for the red card dissolution because it's me.

6:42Katty Kay:I'm Donald Trump. So you see, not only am I a rule breaker, but this is a representation of my coolness. This is a representation of my efficiency. Power, my strength. Yes, and getting things done. But what it does is it breaks down norms. And what it does is it puts the United States in a weirdly vulnerable position. And so the bully in the schoolyard doesn't do well okay the the henchman in the local town doesn't do well because you know what happens caddy the other kids get together or the other people in the town they go to the sheriff and they say okay we're going to all team up and form a posse and take out the henchman or we're going to take out the bully in the uh in the high school cafeteria you see so we we literally have That Biff, do you remember Biff from Back to the Future?

7:38Anthony Scaramucci:Yeah.

7:39Katty Kay:We literally have Biff running the American presidency and overseeing the American government. And we have all these willing sycophants that are sitting around him allowing for this. No, Rubio doesn't go to him and say, hey, this is like really bad for us. This is bad publicity for, no. Trump is like, no, this is great for us.

8:00Anthony Scaramucci:You're right. Like the Kamala Harris thing is interesting because online, a whole load of kind of Trump MAGA voices online immediately came out and said, Kamala Harris wouldn't have done this. You see, she would never have managed to get this red card overturned. And they were seeing it from a position of pride as opposed to, yeah, duh, she would not have called up Infantino in order to bend the rules to get a red card overturned. But they saw it as a position of strength. I suppose the only thing on the schoolyard bully thing, I mean, maybe it's interesting that we're having this conversation as Trump flies off to NATO having put out incredibly disparaging truth social posts about Georgia Maloney.

8:39Anthony Scaramucci:But I think the problem is that everybody's kind of looking around saying, where is the alternative sheriff? I mean, who's the sheriff that they're going to call, right? I mean, you've got UEFA, the European Football Association, organization coming out and saying, this is a red line. When I heard that this morning, I thought, well, red line what? Red line, so what are you actually going to do about it? Because again, we're living in Stephen Miller's world. The world is kind of run by power. Yes, maybe the only way that America can win is by cheating in this case or by having rules bended in their favor.

9:16Anthony Scaramucci:I don't know that that really helps the American team. Let's say they do beat Belgium in their match with Belgium. How great are they going to feel about it? But we're in this weird world where one country is not really playing by the rules of the world, and yet there isn't a sheriff to call yet. So what does that red line even mean?

9:37Katty Kay:Well, again, there's an old school professor at the JFK Kennedy School of Government at Harvard. His name is Stephen Walt. He wrote a book about 15, maybe 20 years ago now about unnatural alliances. You're going to go to war in Iraq. Well, guess what's going to happen? There's going to be unnatural alliances. People that were once enemies are now going to be friends to turn against you. The Chinese and the Russians had been fighting over land in Siberia for 300 years. The Chinese claim it was taken from them. they want it back the russians have it you know what they dialed that whole thing down uh and they're lovey-dovey together and they've got huge painted portraits of each other uh and they're they're strolling around together arm in arm why because the enemy of my enemy is my friend and what the united states did a brilliant job of is we're the most powerful country in the world we have you know three percent of the population at the time of the end of the second world war 50 of the world's gdp but we're not going to be dicks about it okay we're going to try to handle ourselves in the most benevolent and the most rules-based way so that you're not threatened by us if anything you're going to want to be us you're going to want to have an alliance with us and we're going to sell you our hollywood movies and you know you're going to buy products from us hopefully and your teenagers are going to grow up because there's a lot of freedom and a lot of craziness in our country.

11:10Katty Kay:Your teenagers are going to grow up and they're going to want to be us. And they're going to watch Top Gun and they're going to hang out and say, hey, you know, America's cool. They're really trying generally to do the right thing. Did they screw up in Vietnam? Have they misfired a few things in the Middle East? Yeah, but you know, generally they're trying to do the right thing. Now it's like, hey man, And who the hell are you guys? You know, we got people in Canada that boo our national anthem.

11:38Anthony Scaramucci:Right.

11:38Katty Kay:We've got people in Florida. You know, my driver in Florida, you know, because, you know, I love the Disney Cruise, something you would never do, by the way.

11:46Anthony Scaramucci:Well, if they had hot dogs on it, maybe I would. You never know.

11:49Katty Kay:No, there's no chance. I got the under on that one as well. But anyway, my driver picks me up at the airport. He's like, Mooch, there's nobody here. What do you mean there's nobody here? We're down 25 % that Canadians will not show up, okay? My business is suffering Donald J. Trump. Donald J. Trump. So now we're going to upset the Italians, right? They invited the Pope to come to the 250th anniversary. He's an American Pope, Caddy. Did he accept the invitation? No, he did not accept the invitation. He went to the shores where the immigrants were dying, okay? He went to the shores on the 4th of July and he said a prayer for the people that were trying to seek freedom in the West.

12:34Katty Kay:And they died on the shores from the crisis of those boats and those flotillas. That's where the Pope went. And if you read the Pope's letter about America, you know, that's the, that's, you said, well, where's the leadership? There's one American. He happens to be the Catholic, head of the Catholic Church. okay and rebut he wrote on the fourth of july it was it was a it was an american renewal message it was like guys are we going to really forget everything about where we've come from and and who we are and what we represent to the world i think this i think you're so right that we're at

13:12Anthony Scaramucci:a moment where you've got some people in a moment where corruption is being normalized as you and spoke about last week and where you're seeing rules being bent in the way that Mark Carney has spoken about. There was actually perhaps always one rule for one group of people in the so-called rules-based, what are international rules-based order that actually worked differently for some countries than for other countries. But you have in this moment, you've got some people standing up like the Pope, and we're going to talk about the speeches that Mamdani and Trump gave over the weekend in the second half, and Mark Carney, who is clearly emerging as a kind of leader in NATO trying to rally other countries to find another form of sheriff or another form of world order.

13:59Anthony Scaramucci:And then you have people like Infantino who have decided to jump on the bandwagon. And I think this is a moment where people's credentials and character are really being tested because this isn't a story about Balogun and this isn't a story about the American team, But they are getting sucked into the kind of muck here by Infantino, who is he's not running a football body. He's he's running a favor exchange with a client list of one head of state, Donald Trump. And some people will play that game and think that they're benefiting. And Donald Trump clearly thinks he's benefiting. And MAGA world clearly thinks that this is the way to do it.

14:36Anthony Scaramucci:You you exert strength, you exert pressure, you show how powerful you are and other people will have to bend to you. Okay.

14:42Katty Kay:So I don't know Infantino, but my guess is -

14:45Anthony Scaramucci:He's not your best friend?

14:46Katty Kay:No, but he wants proximity to power, which is obvious, right? He's hanging out with Ludnick at the games. He's gave Trump the FIFA Peace Prize. I mean, I don't even know what that is, but he gave it to him. And so he's like, okay, you know what? This is a loyalty program, okay? And this isn't corruption to me. This is me just wanting to be inside the circle of significance around the president of the United States. You know, you know, Caddy, this is the irony of the whole thing. I mean, I'm not, and everybody knows that listens to this podcast. I'm not that familiar with football, at least your version of football.

15:20Katty Kay:But, you know, when I looked at the play and I watched the replay five or six times, you know, I don't know, did he deserve a red card for that? Somebody said he was mouthing off to the ref. He was going to get a yellow and then ended up getting a red card. But the point is that he could have gotten a reprieve. The irony is he probably deserved a reprieve. I'm a fan of America. I certainly would want the kid to play in the game. But the way this went down is so bitter and it tastes so bitter.

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15:50Anthony Scaramucci:Yeah. That's the problem is that Trump has now ruined it for everybody.

15:54Katty Kay:And you know what? Ronaldo got a reprieve a few years back, right? Yeah. I did a little bit of research, right? This is not the first time. Adam Mende got a repeat. I don't even know how to pronounce the guy's name right. They got it without a presidential phone call.

16:05Anthony Scaramucci:I'm sort of loving the Anthony Scaramucci as football soccer pro.

16:09Katty Kay:I'm just saying this is so bad and that this is also to me, it's, you know, D 'Angelo Patrick Moynihan said, we have to be careful with our government. We don't want to define deviancy downward. where every step is a downward step. Every step is a step in a way where this is the absence of leadership. Okay. This level of cronyism is the absence of leadership. Like a real leader would have let the chips fall where they fell. Okay. But he's bragging to his buddies, look at me and look how great I am I got I got this guy back into the team I'm the man you're not the man you're like a you're like a real overgrown 80 year old jerk off is what you actually are and what you're doing is you're embarrassing us on the world stage and you hurt the team now

17:05Anthony Scaramucci:you hurt the team because that's the point is you hurt everybody else there were a lot of people

17:10Katty Kay:out there like hey the Americans are having a good run here they probably won't win the world Cup, but they're having a good run. Good for America. Now you're going to have 100 million people, 200 million people. I don't know. This thing is 10 times the size of the American Super Bowl. So you tell me the hundreds of millions of people they're going to be rooting against or not cheering for America. I think if you use the word root in Australia, it's a bad word, so I got to stop saying it. But the point I'm making is this is so embarrassing, but it's so indicative of where the country is now with its leadership and i gotta bring this up because larry david had rob reiner the late rob reiner in his last role ever playing george washington and they released this thing over the fourth of july weekend and it was literally some of the funniest shit that i've ever seen but it was it was larry and george washington in the town square and Larry was basically saying to George, well, suppose you have an imbecile that runs the White House.

18:14Katty Kay:Suppose you have somebody that steals$2 billion. Suppose you have somebody that ignores the judiciary. Suppose he's out there murdering his citizens in Minneapolis, as an example. Suppose we have a new state called, I mean, and Rob Reiner sitting there with George Washington with the hat on. Well, that could never happen. That could never happen, but it happened. It happened but they they eviscerated trump you know and you know the guy's dead and of course trump went off on him etc you know when he died i mean it's just embarrassing murder it's just another

18:46Anthony Scaramucci:embarrassing thing you and i lucky enough to know uh a world somebody who has actually played in a world cup who knows soccer better than either of us do certainly and i reached out to gary lineker who by the way on their netflix show the rest is football they had this uh soccer official saying I don't know. I've become kind of so transatlantic. I'm now soccer and football. My head is in a spin about it. But this football official saying that if the US Football Association had been involved in this FIFA decision, then he would resign over this because he thought it was so egregious. But here's what Gary said.

19:22Anthony Scaramucci:He texted me. He said, I hear Sycophantino has gone into hiding deep inside the bowels of Trump. And that's what people do, right? They think it's going to pay them back. And I think you're right. I think this doesn't help the American team. And that's what's sad about this. And in Belgium, I was talking to a friend of mine in Brussels, reaching out to a friend of mine in Brussels who said the Americans are already out of favor over the weekend because they commandeered what's meant to be a public park on a very hot weekend. And they had a party there for the 250th birthday, but they made it private.

19:55Anthony Scaramucci:So people who actually live in Brussels couldn't actually use the park. And so they were already pissed off. And then this happened. And now they're super mad about it. But let's see. It's one thing to be bad. Let's see what the rest of the world's red line is. When people talk about red lines and Donald Trump and America at the moment, as they will do in NATO, what do they actually mean? And do they have an alternative? Because I'm not quite sure that they do yet. But it doesn't, you're right, it doesn't help the team. It doesn't help America's reputation long term.

20:24Katty Kay:Just remember something about us, and this is for the Americans that are listening in. You know, you're converting American soft power now into a liability. And over 80 years, American soft power was an asset. We started out with a Hershey bar to a kid as GIs were leaving World War II. And now we're bullying the most sacred game in the world, the World Cup football. we're now bullying the leadership of the most sacred tournament in the most sacred game in the world to curry a obvious and transparent favor so you're turning our soft power into a liability and remember it taxes the things that we're selling caddy right you know we what are we selling we want people to buy our beer they want people to be tourists here and we've got the la Olympics coming up in 2028.

21:23Katty Kay:We want people to show up for it. And by the way, we were getting very good press. That's the point, Anthony.

21:31Anthony Scaramucci:This has actually been going super well. You've got all these lovely videos of fans from around the world loving America, being welcomed by Americans. You've got the Kansas University band learning the Algerian national anthem so they could play it to the players when they came. You've got German tourists crossing the country and posting really sweet videos on Instagram, actually America was doing well. It didn't need, I mean, maybe they weren't going to win against Belgium. Maybe they will win because Ballot is in, it'll change the whole thing and they'll get to the semifinals or whatever. And then they'll say, see, we were justified, but it's going to leave a bitter taste in everybody's mouth.

22:05Anthony Scaramucci:And I think that's the problem because you play the bully in the schoolyard, maybe everybody kowtows to you, but nobody's going to love you for it. They're not going to thank you for it.

22:14Katty Kay:Listen, I mean, you didn't fix the game. You just proved to people that things are fixable. Okay. And that is, again, another chink in the armor of aspiration. Young people look at that and are like, oh, wow, man, this thing, everybody's on the take. And how am I going to get ahead?

22:33Anthony Scaramucci:Things are rigged. Things are rigged. It's rigged against me. There's a two-tier system. I think you're right. I think that's the really damaging thing here is that people lose their confidence in the system and in institutions, and it's not surprising. Okay, we're going to take a break, come back and talk about Doge. Remember Doge? Well, it ended this weekend.

22:56Katty Kay:Welcome back to The Rest of Politics US with me, Anthony Scaramucci and Caddy Kay. Caddy, before we jump back in, don't forget to get your tickets to our live shows in October. That's right. We're going to be in a lot of fun places, Chicago, Minneapolis, Atlanta, Boston, Toronto, DC, and of course, my hometown, New York City. Don't miss out. Go to the rest of politics, US.com. Get your tickets now before they sell out. Caddy, we've actually sold a lot of tickets so far, and it's still early, but you're excited for the event? Super excited.

23:30Anthony Scaramucci:Look, it's going to be ahead of the midterms. We're going to places where there's a real impact on the midterm elections, but this isn't a midterms that's being watched, obviously, around the world and in the United States. It's going to be close, certainly in the Senate, and it's going to be an exciting race for the House. So it's fun for us to get out and come and meet you all. We'll be taking your questions. So get a ticket and come and say hi. We'd love to meet you.

23:54Katty Kay:So, Katie, let's talk about, you know, there's one thing about America that is never defeated. Okay, and America marches on. And this is government spending, Caddy Kay. Okay, so we ended supposedly Doge on the 4th of July, 2026. We're supposed to have$2 trillion of savings. We're going to come into the government with a chainsaw and we're going to cut all the programs and we're going to find all the waste and destroy all the waste. Did that happen, Caddy?

24:23Anthony Scaramucci:Well, you know, you texted me and said, let's talk about Doge at the end of last week or over the weekend. I was like, why are we talking about Doge? And it was because I had completely forgotten, Anthony, that Doge was even ending on July the 4th. I mean, we haven't heard anything. The Doge website, I think, has been dormant since January. We have heard nothing about those young kids who are running around Washington taking a chainsaw to everything. It's sort of one of those organizations that just went to sleep on itself. It's like a kid that stops doing it homework and hopes the teachers won't notice.

24:58Anthony Scaramucci:That's what it feels like. But no, I mean, we can run through the numbers. What was meant to save$2 trillion, the Doge website says it saved about$215 billion through job cuts and contract cancellations. Even that$215 billion figure has been very disputed. And I think when you put that in the context of a federal budget, which is$7 trillion, it feels like a drop in the ocean. And I think even that number, I think that$215 billion number on the Doge website. I don't believe it. I've seen lots of reporting to suggest that that's not true.

25:31Katty Kay:No, it's not. It's not believable because they fired people and then they had to quietly walk the people back into their offices. They cut programs and then they quietly had to restore them. Doge did do tremendous damage to USAID. And they did cut those programs. We probably have 800 ,000 people that have died as a result of those programs being cut.

25:56Anthony Scaramucci:Atul Gawendi, who's a fantastic doctor from Harvard, is citing numbers a bit like that, 600 ,000 to 800 ,000. I mean, that's a phenomenal number of people. And the USAID budget was not very big to start with. I know Americans think it's big, but it was not very big to start with. So that number is chilling, right? 600 ,000 people dead.

26:15Katty Kay:Yeah, I wanted to bring this up to viewers and listeners because I want them to understand the beast of the American government. I want them to understand the processes in place. There was a great book. You remember the legendary broadcaster David Brinkley? Remember he had that television show on WABC and then he was Huntley Brinkley for NBC. He wrote a book about 35 years ago, Washington Goes to War. And in the book, he explained that we switched the way the income taxes were done where we now have to take a deduction on our payroll. So it's an immediate payroll deduction. So if you make a dollar in the United States, the United States government takes a sliver of their taxes and then you get a net on your payroll.

27:06Katty Kay:That didn't happen prior to the Second World War. And this transformed the ability of the government to flex on people with their taxes. Because under the psychological theory that you never got the money, right? You just got the net. And so they were able to always skim off the top successfully. And guess what happened? they created this colossal spending and they created these colossal programs and this huge, huge government. And, and Cady, what ended up happening was every time you go into the budgetary process, you want to prove your chops. And so you ask for a three, five, 7 % increase. Okay.

27:47Katty Kay:And then because we now don't have a process anymore. I mean, that, that, that went away with Obama when he was fighting with Paul Ryan way back in 2011, we have all these continuing resolutions now. So what used to happen was the president would submit its budget to the Congress. Congress would then make some changes, bring it back to the president. They would rankle over it, they would approve it, and then the president would sign the budget and the Congress would pass it. We don't do that anymore. So all we do now is have these continuing resolutions. And so So, Cady, your department is going to get a 3 % increase this year.

28:23Katty Kay:The War Department or the Department of Defense is going to get a 7 % increase. And this blotation has caused a runaway train of spending in the United States. Moreover, there's no accountability on the spending. And so, the Doge thing was never going to happen. It would have been like a mouse standing in front of a bullet train, Cady.

28:48Anthony Scaramucci:My question for you then, Anthony, is if Doge came in and didn't exactly the things that you're talking about, the military spending, the big entitlements programs, and they clearly made a decision that they were not going to touch those, I think probably Elon Musk thought maybe in his most grandiose moments that he could touch those things. But he quickly realized those were third rails that he couldn't go near. So my question to you is what was the point of Doge really? Was it really just to go after political grievances that Musk and the president and other people around Donald Trump had around things like DEI and USAID and programs like that?

29:31Anthony Scaramucci:In which case, I suppose they would argue that they succeeded because they did cut DEI. You know, people are very, very concerned about trying to do anything around diversity and inclusion. They're terrified of being on the wrong side of the law. And they did manage to do this incredible damage. I think it's something that's not talked about enough. I'm so glad you brought it up, the number of deaths there have been because of the cutting of USAID. Is that really what this was about? Was it just politics? Was it never about trying to really get away with waste, fraud, and abuse and excess and what did you call it?

30:07Anthony Scaramucci:Blotation? That was a good word, by the way.

30:08Katty Kay:Probably not a word, but it's George Bush's 80th birthday today. I like making up words.

30:14Anthony Scaramucci:We'll put it into the Scrabble Dictory. I was playing a lot of banana grams and Scrabble over my vacation with my kids, and I think we'll put that in the Scrabble Dictory. It was a good one.

30:22Katty Kay:Happy birthday to President Bush today. Happy birthday.

30:26Anthony Scaramucci:So is that what it was about, politics, not really about economics?

30:29Katty Kay:I actually think it's the holy trinity of lies. And let me just give you the three lies. Okay, ready? Lie number one, we're going to end forever worse. Lie number two, we're going to divulge the Epstein files. And as correctly predicted on this program, you ain't ever seeing those files and good luck to you and Trump's going to get away with it. Okay. And then lie number three, we're going to make the government more efficient. And we're talking about a man who spent$8.1 trillion in his first term. And he's now, if you add up the stuff that he's done in his second term, he's 28.1 % of the overall budget deficit of the entire nation's 250 years.

31:12Katty Kay:So he's been president for six years. Okay. And I'm not blaming that on him, by the way. I think it's very important people to understand this is the system. I would imagine if Joe Biden were president right now or Kamala Harris, we would have this aggressive spending. But you see what Doge could have done, Caddy, is they could have returned to the pay-as-you-go rules way back in the 1990s. And basically what happened was we had guardrails on the system. The big, beautiful spending bill could have done that. Could have said, okay, listen, Dick Gephardt got together with George Herbert Walker Bush and Dick Darman, the OMB director, and we created these guardrails where if you wanted to have a tax cut, no problem.

31:52Katty Kay:You had to find something in the budget to cut. If you wanted more social spending, well then guess what? You had to increase taxes, right? This got Bush in trouble, the first Bush, because we went into a recession and he wanted more social spending, So he raised taxes even though he promised no more taxes. So the point is this worked. It got Bill Clinton. Clinton adhered to it and we were printing a budget surplus in 2000. We had a$240 billion surplus. But the Doge thing is important to bring up because you're on a path of unfixability if you're not going to handle it in a way that governments work.

32:31Katty Kay:See, Elon went in there and said, well, I'm a business guy. I cut 80 % of the costs at Twitter and Twitter survived.

32:38Anthony Scaramucci:You didn't bother to learn the subject.

32:39Katty Kay:Yes, exactly. This is the government. You can't run the... When I hear a business guy say, I'm going to come into the government and I'm going to run the government like a business and business leaders know more and blah, blah, blah, it's not a business caddy. So it's just a further leg in the stool of our general incompetence about how we're running the things that could be run more properly and run with good diligence and policy execution.

33:05Anthony Scaramucci:I feel a little bit more cynical about it than you do because I know that when Musk sometime around the middle of last year, when Doge was wrapping up and after he had left, he did Katie Miller, Stephen Miller's wife's podcast, and he said that it was only a little bit successful and they wouldn't do it again. But I think that's because Elon Musk had one agenda, which was end waste, fraud, and abuse. But actually, the politicos around Donald Trump and in Maga land and Stephen Miller had another agenda, which was to end, you know, wokery. And under the kind of broad umbrella of wokery, they put diversity and inclusion programs, and they also put anything to do with international development.

33:48Anthony Scaramucci:I was with my daughter, who I've spoken about on the podcast before, Maya. I'm sure she wouldn't mind me saying this, but she had a malaria research grant that was cut through the doge cuts when she finished her PhD program. And she was saying this week up in Maine that actually it's interesting exactly what you say now the State Department is trying to ramp up its research around infectious diseases, global infectious diseases, because they realized when the Ebola breakout happened in Africa, oh my goodness, this could come to us. And guess what we've done? Doge cut all of our research into things like malaria and Ebola, and it's actually going to come back and hurt us.

34:27Anthony Scaramucci:So even though they may have felt in the kind of MAGA universe that this was great, we don't need to help the rest of the world, America's been had, which is a constant refrain of Donald Trump's, whether it's to do with defense spending or to do with international development, why should they be leeching off us? Actually, these are the kind of things that in very practical ways to protect American citizens, it actually helps to have an Ebola research program or a malaria research program. But they cut the money, now they have to hire people back again, and it ended up costing twice as much, just like you said.

35:01Anthony Scaramucci:What a dumb example, right?

35:03Katty Kay:It's just general incompetence, but it's also born from the idea of what I call Potomac fever. And again, as a mea culpa, I had Potomac fever, so I understand Potomac fever. I'm smarter than you. I'm richer than you. I'm going to come into the government and do things better than you. See, if Elon had said, hey, listen, I went out and I've got 25-year veterans of the GAO, the Government Administrative Office. I went to old Bush people. I went to old Clinton people. I went to old, even Biden people for that matter. I made a bipartisan committee. They know all the tricks in Washington about spending.

35:41Katty Kay:Everybody wants to heal this thing and make it better. I'm going to come back to you in two months about what their game plan would be. And maybe it was a hybrid thing. Maybe it was reintroduction of the pay-as-you-go laws. And maybe here are some of the tricks that go on in Washington. All of these people here are former tricksters. Okay, let's untrick the budget. And I'm not going to save$2 trillion.

36:03Anthony Scaramucci:You mean if he hadn't just got on stage with a chainsaw, took your route as opposed to the chainsaw route on stage, which is the image he wanted?

36:10Katty Kay:By his own admission, he's admitted to his buddies that the chainsaw was a moment of hysteria.

36:17Anthony Scaramucci:Was not his best moment.

36:18Katty Kay:And not understanding things. But again, remember, you could like Bill Clinton, dislike Bill Clinton.

36:23Anthony Scaramucci:He did actually balance the budget. He got it. He and Bob Rubin.

36:27Katty Kay:Yes, his people were fighting with him over it. Bob Rubin told him to hold to pay as you go, even though it was a Bush idea. Clinton did it. You also have to remember that Clinton and Gore had this thing called reinventing government. and you had 426 ,000 positions in the government eliminated under their watch, okay? And, you know, they did it in a bipartisan way and they did it with a general consensus. If you went to Washington right now and you said to anybody, you live in Washington, let me ask you the question. You went to Washington and said, guys, do we have a spending problem here in Washington?

37:02Katty Kay:Even the people that are doing the spending, what would they say, Kat?

37:04Anthony Scaramucci:Clearly, yes, absolutely.

37:06Katty Kay:Okay, we have a spending problem, okay? So are there incremental things that we could do to shave off some points here and there to reduce the spending? And the answer is also yes. And my point is we could have handled it with that level of gradualism and put a 25-year plan in place instead of a 25-minute one.

37:25Anthony Scaramucci:And without putting hundreds of thousands of people out of work, which they did kind of overnight, which decimated Washington as a city. I mean, it's really hurt the economy of Washington, but more importantly, it's hurt people. around the world because of the way they cut this. I agree with you. They could have done it. They could have done it the right way, but that would have taken studying.

37:45Katty Kay:We're going to cut the money from the disadvantage. We're going to culturally send a message of DAI, and we're going to allow the president of the United States to take between two and four billion dollars for himself while we're doing this. And we're going to have rampant insider trading by the elected officials that are legal. And if they don't file the disclosure on time, which Trump didn't, will have a$200 fine, will slap them with a$200 fine on their road to making$2 billion. And then you wonder why people have lost the plot as it relates to their government, or they've lost the faith as it relates to their government.

38:22Katty Kay:But again, the reason I wanted to bring all of this up, this is going to get worse, Kat. There's going to be a 2028 presidential candidate that is going to also blow this off.

38:34Anthony Scaramucci:It's the time bomb America is sitting on.

38:37Katty Kay:We're going to be facing a$50 trillion budget deficit. And that means, and the only way we're going to pay for it, Caddy, is through the pernicious regressive form of taxation known as inflation. Because these cowards are not going to tax the people. They're just going to steal the money out of their bank account. So that$1 ,000 you have in your bank account, I'm a really sorry. It only has$800 worth of purchasing power now. And to me, this has to be fixed. This 100 % has to be fixed and the American people have to be told the truth and they have to be explained. Yes, it is fixable, but it's a 25 year plan of fixability.

39:18Anthony Scaramucci:The only way you can fix it is with some sort of bipartisan cooperation, because otherwise a party comes in, tries to fix it. And the other party runs ads saying they're trying to steal money from seniors. They're going to introduce death panels. They're going to do the hard stuff. And politically, it's undoable. So you have to have some kind of bipartisan cooperation to do this thing, which is very hard to do and is going to take some kind of restraint and probably a little bit of pain. And nobody wants to cooperate at the moment. So I don't know that it's actually feasible. It would be nice if that was July the 4th's present to America.

39:52Katty Kay:So, Katty, let me just ask you this question if you don't mind. So we're not going to fix it. There was rhetoric over the weekend. The mayor of New York gave a speech and the speech was very polarizing, Gatti. And I watched the speech three times because I really wanted to understand what he was doing. And my old nemesis, Steve Bannon, said something about the speech, which by the way, I agreed with, look out, this guy gets it. He's coming for everybody. And I'm going to tell the people listening, if you like the system, Mondani and his people are going to blow the system up. I'm just letting you know.

40:28Katty Kay:If you don't want to fix the current system, which made America prosperous and deepened the well of the middle class, and you want to go in the current system that we're going in where there's more have-nots than haves, and there's a lot of anxiety, then people like Mayor Mondani are going to come in and they're going to explain the way they're going to change the system. So what was your reaction to his speech? And what was your reaction to the polarity of reactions to his speech?

40:58Anthony Scaramucci:Well, I mean, look, thinking about what you've just said about budget deficits, obviously, one of the routes to helping the budget deficit or to shrink the budget deficit is to grow your tax base. Well, one of the routes to growing the tax base is to have more people. Americans are not having more babies. So actually, having some more immigrants is one of the ways that you could do that. So there's an economic argument for what he was saying, which is we should be opening our doors, which is how he started the speech. I listened to the speech and I saw what you had sent me about how some people in MAGA world are saying he's screwed up because his tone was too angry.

41:31Anthony Scaramucci:I think you can make critiques of the country and I thought the speech was very interesting. It was not the kind of smiley Mamdani of FIFA and the Knicks. This was a much more serious Mamdani. He made some very interesting points about the people in the country who don't have anything and those who think who have power. I mean, it was a real power and powerless speech. and the two sides of America and the people who have power think that only people should be allowed into the country who have the right skin color and the right tone of voice and the right accent and that that is unoriginal of them and weak of them.

42:10Anthony Scaramucci:But he did it in a very serious way. And although he never mentioned Trump's name and Trump never mentioned his name, in a way, Trump's speech at Mount Rushmore and Mamdani's speech sitting there behind George Washington desk in New York City were the kind of dueling closing arguments, I think, for 2028 is what we're going to hear a lot of from whether it's J.D. Vance or Marco Rubio or whoever it is. And we even heard it from Donald Trump. The communists are coming. The socialists are coming. It's never going to work in America against people like Mamdani who are saying, we have tried everything else.

42:42Anthony Scaramucci:We cannot afford rent. The prices are too high. Groceries are too high. Jobs are disappearing to AI. What do you want us to do? It's the kind of break glass and reach for the emergency lever moment. And I think that's what he's doing. The only thing I would say is I still think, I know they've had successes. They had successes last week in Colorado, the Democratic Socialists of America. I think Mamdani is in a communications league of his own. And for this to really take root across the country, this movement, I know how frustrated people are. It's very rare to have the communications ability of Mamdani.

43:21Anthony Scaramucci:And I haven't seen any of the other candidates. And by the way, they are still a tiny minority of the candidates who are winning around the country in the Democratic primaries. It tends to be more of the normie type of candidates who are winning. But I haven't seen other Democratic socialists of America have candidates from that party have the same communication skills as Mamdani. I don't know. I know they've had successes. Let's see how much influence they have on 2028.

43:47Katty Kay:Listen, this kid is a very talented politician, you know, and I'm not in agreement with him. I would love to debate him intellectually, but he's doing something that has worked in America and he's channeling Frederick Douglass. Barack Obama channeled Frederick Douglass. You remember he was the great African-American self-taught orator who influenced the reconstruction and tried to make the country fairer and something that Douglas said that Mondani is capturing, which is this flawed but redeemable patriotism. You see, this white supremacy patriotism is America white and right and love it or leave it, get out of the country if you don't love it.

44:30Katty Kay:I thought the symbolism was important. He's at Washington's desk, which is in his office. Remember, that's where the Declaration of Independence was first read to the Continental Army, okay, right from Washington's desk. And I don't know, I thought the symbolism was really important. In a world of trillionaires and monopolies now and oligarchs that are controlling the government, we're off the mark. We're off the mark of what was making America great after the war. We're way off the mark. I'm not convinced that his style is going to bring us back to the mark, but I'm telling you, it's going to resonate with people in the have-not space in America.

45:15Katty Kay:His influence is going to grow. It may not be democratic socialist, Caddy, but he'll end up becoming a kingmaker in that party.

45:22Anthony Scaramucci:Interestingly, Anthony, one of our journalists, Izzy, from our newsletter who works at Goldhanger, has been in America speaking to people from across the country over the last week and asking what they think about Trump and the state of politics on this anniversary period. She found And it was very moving. Some people cried. There were Latinos who were scared to give their names, others who described the demise of the American dream. And you can read that piece if you sign up via the link in the episode description. Happy Fourth again, everybody. I had a great weekend. I hope you had fun with your families too.

45:57Anthony Scaramucci:And Anthony, I will see you this week for a very big event. We're going to have fun. We're going to Wimbledon together.

46:03Katty Kay:I'll be with you at Wimbledon tomorrow. Hopefully, I can put my contacts back in.

46:06Anthony Scaramucci:I'm looking forward to it. Okay, everybody. thanks so much for listening. And if you'd like to get our members only episode, we're going to be answering your questions. You can sign up at the rest is politics us.com to become a founding member. Bye, guys.

46:18Katty Kay:Thanks, guys.

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