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The Iran war has already cost the United States $ 38
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billion as of August 1st, and that number is set
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to go up as much as $ 3 billion for every
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month the fighting continues, and there's no sign that it
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is ending anytime soon. That is according to a new
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report from the nonpartisan Congressional Budget Office. That very same
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report found that the war is responsible for more than
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one-third of the increase in inflation this year, And that
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will likely to continue to grow throughout next year. Joining
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me now, Priya Sridhar, Pentagon reporter for MSNOW and retired
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four-star U.S. Army General Barry McCaffrey, a decorated combat veteran
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of Vietnam and a former battlefield commander in the Persian Gulf.
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Priya.
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This CBO report says one of the reasons for the
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high price tag is the increased cost of fuel, which,
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of course, is a direct result of the war. Can
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you just put these massive numbers into perspective from us?
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Because especially this week, the president's been chirping. It's Ukraine.
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It's this. It's that. It's the war in Iran.
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Yeah, that's right, Steph. Thirty eight billion dollars is not
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a small price tag. And by far the biggest cost
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bucket within this is twenty one billion dollars in expended munitions.
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And this report said that our stockpiles of things like
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land cruise missiles and interceptors are at a critically high.
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low level. And if we were to engage with an
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adversary like the People's Republic of China that has a
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large arsenal of their own ballistic weapons, we would be
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not in a good position. So $ 21 billion just in
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trying to replace those expended munitions. But as you said,
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the Strait of Hormuz has essentially been closed for business, right,
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for several months. And that has caused oil exports getting
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out of that region to basically hit a standstill, which
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in turn has driven up the costs of petroleum products,
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jet fuel and, of course, oil itself, which then is
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essentially leading to inflation rising. And this report projected that
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we were going to see interest rates increase and inflation
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go up until at least the first quarter of 2027.
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And as you noted in the very beginning, this report
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only projected costs up to August 1st. And it said
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that it likely underestimated everything. And that's because Spoiler alert,
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the Department of Defense did not cooperate with them when
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they asked for information. So they had to do all
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of this estimating and projecting based on public reports. And
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we know that the Department of Defense has not been
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very transparent or accessible when it comes to exactly what's
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going on with this war stuff.
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General, an inspector general report found that we do have
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strategic inventory shortfalls, just as we've been talking about for months.
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How does the Pentagon keep denying this as an issue?
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Well, of course, they don't want to discuss their own
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vulnerabilities and weaknesses in public. So that's understandable. But look,
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the bottom line, Steph, is that we're on the verge, apparently,
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of a strategic disaster. The Iranians and the Houthi faction
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cannot possibly threaten the U.S. Armed Forces, but they have
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geography on their side. And Mr. Trump correctly has said
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to himself, we're not going to be able to employ
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ground combat power. I have to remind people, we had 60,000
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killed and wounded during the war on terror in Iraq
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and Afghanistan. So he's taken that option off the table.
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Air power alone will not be able to open the
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Red Sea and the Persian Gulf, not just to oil,
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but potentially to interdiction of all commodity shippings.
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Mr.
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Trump does not have a plan except he's counting on
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economic collapse in Iran that would allow us to get
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a deal before the midterm elections.
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Then let's go over to Saudi Arabia, Priya, because right
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now they are at a crisis point as they trade
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a tax with the Houthis and the key oil pipeline
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is now shut down. What could that mean both for
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the wider war and the global economy? Because now this
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isn't about the straight.
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Yeah, I mean, this, by all accounts, we're opening up
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a second front of this war because, of course, the
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Houthi rebels, which are based in Yemen but backed by Iran,
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have been making advances in Saudi Arabia, both by ground,
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but they're also escalating their aerial bombardment. Saudi Arabia just
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alleged that the Houthis actually attacked Mecca, which of course
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is one of the most holy cities in Islam, an
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allegation that of course the Houthis are vehemently denying. But
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we know, by the way, that they've taken two islands
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in the Red Sea. They're essentially looking at what the
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IRGC and Iran did in the Strait of Hormuz and thinking, wow,
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that's a great idea. Why don't we also strategically target
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these oil pipelines, as you said. And they are also
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looking to take the Al-Bab Mandib Strait, which is another
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critical waterway when you're talking about oil exports. So most
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analysts that are watching this are saying this also is
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going to add to oil exports and petroleum costs surging,
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not just the Strait of Hormuz, but also what we're
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seeing over in Saudi Arabia, which, of course, is a
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critical ally to the United States.
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General, Pete Hegseth is now going to give another one
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of those State of Force speeches. And this time it
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has been made public. He only wants the fittest and
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best groomed troops to attend. This is according to The
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Wall Street Journal. I mean, this is like only hotties
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need apply. What is your reaction to this?
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Well, you know, there is a comical air to all this.
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I think the Secretary of Defense's critics will say, He's
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focused on accompanying commanders to the armed forces, not the
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strategic direction. He can do push-ups. He can do pull-ups.
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He would be hard-pressed, by the way, to go on
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a morning run with a Marine Infantry Battalion or a
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Ranger Battalion. But he's focused on hairstyles, tattoos, and physical fitness.
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And one could argue he needs to back off and
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understand that the current for example, strategic dilemma of the
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United States to support the United States Navy in the
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Middle East when we lost probably forever all 15 of
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our logistics bases in the region. We're now trying to
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keep these 20 warships at sea based out of Diego Garcia.
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So I think he's got his priorities wrong. But if
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he wants to see good-looking soldiers, just go to Fort Bragg.
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There's thousands of them walking around.
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And Priya, just one more thing. Speaking of Pete Hegseth,
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Republican outgoing congressman, clearly no friend of Donald Trump, Thomas Massey.
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He is now moving to impeach Pete Hegseth over this
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Iran war. What are you hearing in Washington about this?
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Yeah, that's right.
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So he introduced this resolution yesterday afternoon, and he actually
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admitted that he didn't give any sort of heads up
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to GOP leadership. Of course, Representative Massey has been a
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vocal opponent of this Iran war. And we know that
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President Trump and Secretary Hexeth actually traveled to Kentucky himself
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to campaign on behalf of Massey's primary opponent, who, of course,
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won that primary. So now he's not up for reelection anymore.
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So these are eight articles of impeachment. Of course, the
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House is going to have to vote on them within
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the next 48 hours. And I think it's going to
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be a really interesting indication to see where Republicans stand,
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especially given that vote yesterday that you guys were just
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talking about in your last panel about the War Powers Resolution,
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where we saw. Seven Republicans break rank and vote to
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try to limit the president's military authorities when it comes
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to this war in Iran. But as you rightly pointed out,
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you know, seven compared to the hundreds who didn't vote
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is very fascinating. But it'll be interesting to see where
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these Republicans decide to stand when it comes to this
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impeachment vote on Hegseth.
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Hey, it's me, Rachel Maddow. If you like the story
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The Iran war has already cost the United States $ 38
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billion as of August 1st, and that number is set
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to go up as much as $ 3 billion for every
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month the fighting continues, and there's no sign that it
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is ending anytime soon. That is according to a new
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report from the nonpartisan Congressional Budget Office. That very same
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report found that the war is responsible for more than
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one-third of the increase in inflation this year, And that
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will likely to continue to grow throughout next year. Joining
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me now, Priya Sridhar, Pentagon reporter for MSNOW and retired
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four-star U.S. Army General Barry McCaffrey, a decorated combat veteran
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of Vietnam and a former battlefield commander in the Persian Gulf.
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Priya.
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This CBO report says one of the reasons for the
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high price tag is the increased cost of fuel, which,
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of course, is a direct result of the war. Can
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you just put these massive numbers into perspective from us?
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Because especially this week, the president's been chirping. It's Ukraine.
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It's this. It's that. It's the war in Iran.
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Yeah, that's right, Steph. Thirty eight billion dollars is not
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a small price tag. And by far the biggest cost
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bucket within this is twenty one billion dollars in expended munitions.
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And this report said that our stockpiles of things like
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land cruise missiles and interceptors are at a critically high.
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low level. And if we were to engage with an
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adversary like the People's Republic of China that has a
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large arsenal of their own ballistic weapons, we would be
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not in a good position. So $ 21 billion just in
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trying to replace those expended munitions. But as you said,
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the Strait of Hormuz has essentially been closed for business, right,
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for several months. And that has caused oil exports getting
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out of that region to basically hit a standstill, which
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in turn has driven up the costs of petroleum products,
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jet fuel and, of course, oil itself, which then is
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essentially leading to inflation rising. And this report projected that
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we were going to see interest rates increase and inflation
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go up until at least the first quarter of 2027.
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And as you noted in the very beginning, this report
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only projected costs up to August 1st. And it said
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that it likely underestimated everything. And that's because Spoiler alert,
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the Department of Defense did not cooperate with them when
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they asked for information. So they had to do all
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of this estimating and projecting based on public reports. And
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we know that the Department of Defense has not been
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very transparent or accessible when it comes to exactly what's
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going on with this war stuff.
47
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General, an inspector general report found that we do have
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strategic inventory shortfalls, just as we've been talking about for months.
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How does the Pentagon keep denying this as an issue?
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Well, of course, they don't want to discuss their own
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vulnerabilities and weaknesses in public. So that's understandable. But look,
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the bottom line, Steph, is that we're on the verge, apparently,
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of a strategic disaster. The Iranians and the Houthi faction
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cannot possibly threaten the U.S. Armed Forces, but they have
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geography on their side. And Mr. Trump correctly has said
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to himself, we're not going to be able to employ
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ground combat power. I have to remind people, we had 60,000
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killed and wounded during the war on terror in Iraq
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and Afghanistan. So he's taken that option off the table.
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Air power alone will not be able to open the
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Red Sea and the Persian Gulf, not just to oil,
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but potentially to interdiction of all commodity shippings.
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Mr.
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Trump does not have a plan except he's counting on
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economic collapse in Iran that would allow us to get
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a deal before the midterm elections.
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Then let's go over to Saudi Arabia, Priya, because right
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now they are at a crisis point as they trade
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a tax with the Houthis and the key oil pipeline
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is now shut down. What could that mean both for
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the wider war and the global economy? Because now this
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isn't about the straight.
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Yeah, I mean, this, by all accounts, we're opening up
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a second front of this war because, of course, the
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Houthi rebels, which are based in Yemen but backed by Iran,
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have been making advances in Saudi Arabia, both by ground,
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but they're also escalating their aerial bombardment. Saudi Arabia just
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alleged that the Houthis actually attacked Mecca, which of course
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is one of the most holy cities in Islam, an
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allegation that of course the Houthis are vehemently denying. But
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we know, by the way, that they've taken two islands
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in the Red Sea. They're essentially looking at what the
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IRGC and Iran did in the Strait of Hormuz and thinking, wow,
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that's a great idea. Why don't we also strategically target
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these oil pipelines, as you said. And they are also
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looking to take the Al-Bab Mandib Strait, which is another
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critical waterway when you're talking about oil exports. So most
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analysts that are watching this are saying this also is
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going to add to oil exports and petroleum costs surging,
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not just the Strait of Hormuz, but also what we're
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seeing over in Saudi Arabia, which, of course, is a
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critical ally to the United States.
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General, Pete Hegseth is now going to give another one
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of those State of Force speeches. And this time it
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has been made public. He only wants the fittest and
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best groomed troops to attend. This is according to The
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Wall Street Journal. I mean, this is like only hotties
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need apply. What is your reaction to this?
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Well, you know, there is a comical air to all this.
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I think the Secretary of Defense's critics will say, He's
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focused on accompanying commanders to the armed forces, not the
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strategic direction. He can do push-ups. He can do pull-ups.
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He would be hard-pressed, by the way, to go on
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a morning run with a Marine Infantry Battalion or a
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Ranger Battalion. But he's focused on hairstyles, tattoos, and physical fitness.
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And one could argue he needs to back off and
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understand that the current for example, strategic dilemma of the
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United States to support the United States Navy in the
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Middle East when we lost probably forever all 15 of
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our logistics bases in the region. We're now trying to
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keep these 20 warships at sea based out of Diego Garcia.
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So I think he's got his priorities wrong. But if
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he wants to see good-looking soldiers, just go to Fort Bragg.
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There's thousands of them walking around.
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And Priya, just one more thing. Speaking of Pete Hegseth,
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Republican outgoing congressman, clearly no friend of Donald Trump, Thomas Massey.
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He is now moving to impeach Pete Hegseth over this
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Iran war. What are you hearing in Washington about this?
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Yeah, that's right.
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So he introduced this resolution yesterday afternoon, and he actually
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admitted that he didn't give any sort of heads up
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to GOP leadership. Of course, Representative Massey has been a
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vocal opponent of this Iran war. And we know that
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President Trump and Secretary Hexeth actually traveled to Kentucky himself
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to campaign on behalf of Massey's primary opponent, who, of course,
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won that primary. So now he's not up for reelection anymore.
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So these are eight articles of impeachment. Of course, the
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House is going to have to vote on them within
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the next 48 hours. And I think it's going to
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be a really interesting indication to see where Republicans stand,
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especially given that vote yesterday that you guys were just
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talking about in your last panel about the War Powers Resolution,
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where we saw. Seven Republicans break rank and vote to
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try to limit the president's military authorities when it comes
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to this war in Iran. But as you rightly pointed out,
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you know, seven compared to the hundreds who didn't vote
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is very fascinating. But it'll be interesting to see where
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these Republicans decide to stand when it comes to this
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impeachment vote on Hegseth.
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Hey, it's me, Rachel Maddow. If you like the story
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