Episode 5080: Live From Davos; President Trump U Turns On Chagos Islands
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What are the key themes from President Trump's inauguration speech?
Please raise your right hand and repeat after me. I, Donald John Trump, do solemnly swear. I, Donald John Trump, do solemnly swear. That I will faithfully execute. That I will faithfully execute. The office of President of the United States. The office of President of the United States. And will to the best of my ability. And will to the best of my ability. Preserve, protect and defend. Preserve, protect, and defend. The Constitution of the United States. The Constitution of the United States. So help me God. So help me God. Congratulations, Mr. President.
Trump exhaustion syndrome and dives into the nonstop and frantic development surrounding President Trump's first year back in office and how Americans just can't seem to keep up. The report chronicles Trump's attempts to expand his power over the past year and why seemingly no one has been able to stop him.
Again, I would say this is the same kind of hysteria that we heard on April 2nd. There was a panic. And what I am urging everyone here to do is sit back, take a deep breath and let things play out. As I said on April 2nd, the worst thing countries can do is escalate against the United States.
It feels, Joe, like I'm sitting here in Davos waiting for Storm Trump to arrive. And nobody really knows, is he going to come here with a message that is more conciliatory, having said he had a good conversation with Mark Rutter, the Secretary General of NATO, or is he going to come here and escalate things? I mean, if this is a kind of reality show, what's the next plot twist going to be that he's going to offer us? And really, Europeans are bewildered. But I think what they have taken on board is that this is a permanent shift. And I think that's Something it's taken Europe a while to adjust to. But you just heard, I was listening to the president of the European Union, Ursula von der Leyen, here in Davos, giving the opening remarks.
Here's what she said. Nostalgia is part of the human condition, but nostalgia will not bring back the old order. So Europe realizes it has to prepare to defend itself. Now it has to deal with this emergency over Greenland. And you've got... President Trump attacking some of his closest allies. We've said for a while, Joe, he has a better relationship with Macron. He has a better relationship with Starmer. When he goes and releases their private communications and attacks Keir Starmer for a great act of stupidity, it doesn't do much to shore up his relationships in Europe. And all of this, as we've been saying, to the benefit of Russia, to the benefit of China. And the decision to de-link the U.S. dollar from gold.
In an instant, the foundations of the Bretton Woods system and the entire global economic order, set up after the war, effectively collapsed. But it also had two major effects. It inadvertently created the conditions for what would become a truly global order, And it provided a sharp lesson for Europe on the need to strengthen its economic and political power. It was a warning to reduce our dependencies, in this case on a foreign currency. The world may be very different today, without any question, but I believe the lesson is very much the same. that geopolitical shocks can and must serve as an opportunity for Europe.
Okay, welcome. It is Tuesday, 20 January, Year of Alert 2026, one year to the day. President Trump returning to set things right. We have a longer cold open, and it's magnificent. I want to compliment my team for the first part, just magnificent. But we have a very special guest, and we want to get to it. It's the Secretary of Treasury, Scott Besson. Mr. Secretary, you led the advance guard over there before the president arrived. Your message yesterday was take a deep breath. Ursula von der Leyen and the others saying, hey, we understand this is a permanent shift. We have to think about this permanently. The markets are you've been promoting and saying, hey, look, the Trump trade is a smart trade. The markets this morning looks like they may be questioning that.
Uh, uh, Dalio came out and said, we may be going to capital wars where Europe are going to reallocate away from the United States.
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Chapters
6 chapters
1
What are the key themes from President Trump's inauguration speech?
0:00–5:16
2
How is President Trump perceived during his first year back in office?
5:16–6:37
3
What are the implications of Trump's power expansion attempts?
6:37–11:36
4
How has Europe adjusted to the new geopolitical landscape?
11:36–16:31
5
What is the significance of the Chagos Islands in current geopolitics?
16:31–51:54
6
How does the U.S. relationship with Japan affect global markets?
51:54–58:22
Speakers
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