SHOULD HE MAKE SOME.
JOINING US TONIGHT IS GENERAL
JACK KEANE, FORMER VICE CHIEF OF
STAFF OF THE U.S. ARMY, RETIRED
FOUR STAR GENERAL, FOX BUSINESS
SENIOR STRATEGIC ANALYST.
GENERAL, GREAT TO SEE YOU.
>> GREAT TO SEE YOU, LOU.
LOU: AS THEY SAY, SEASONS
GREETINGS.
LET'S START WITH THIS BILL, 738
BILLION, THE PRESIDENT IS
COMMITTED TO REBUILDING THE
MILITARY.
THIS IS A SIGNIFICANT
INSTALLMENT IN THAT EFFORT.
>> YEAH, THIS IS THE THIRD
MAJOR -- OF THIS ADMINISTRATION.
ALL OF IT IS VITALLY NEEDED.
AS YOU KNOW, LOU, AND OUR
AUDIENCE IS AWARE, WE DUG
OURSELVES A DEEP HOLE DURING THE
OBAMA ADMINISTRATION AND ALSO AS
A RESULT OF SEQUESTRATION, THE
SO CALLED BUDGET CONTROL ACT.
LOU: UH-HUH.
>> IT WILL TAKE A NUMBER OF
YEARS TO DIG US OUT OF IT.
I MEAN, IT IS SIMILAR TO THE
REAGAN DEFENSE BUILDUP POST
VIETNAM WAR IS WHAT WE'RE DOING
HERE POST 9/11 WARS TO DIG US
OUT.
AND THIS TIME THE HOLE IS A LOT
DEEPER THAN IT WAS WHEN REAGAN
WAS DEALING WITH IT.
SO WE'RE GOING TO HAVE TO
CONTINUE THESE KINDS OF BUDGETS
FOR A NUMBER OF YEARS IF WE'RE
GOING TO GET TO THE PLACE WHERE
WE SHOULD BE, WHERE WE HAVE
DOMINANCE ONCE AGAIN OF MILITARY
CAPABILITY WORLDWIDE.
LOU: IT IS ONE OF THE REASONS
THERE'S SO MUCH CONCERN ABOUT
THE -- IF YOU WILL, THE CONTENT
OF THE SO-CALLED PHASE ONE TRADE
DEAL WITH CHINA, THAT IS,
NATIONAL SECURITY AND ECONOMIC
SECURITY.
HOW CONCERNED ARE YOU ABOUT WHAT
HAS BEEN NEGOTIATED AND HOW
IMPORTANT IT IS TO OUR COUNTRY'S
FUTURE?
>> LISTEN, THE MOST IMPORTANT
BILATERAL RELATIONSHIP I BELIEVE
IN THE 21ST CENTURY IS THE
UNITED STATES AND CHINA.
THIS IS THE FIRST TIME WE HAVE A
PRESIDENT WHO IS PUSHING BACK ON
A PREDATORY NATURE OF CHINA BOTH
ECONOMICALLY AND GEOPOLITICALLY
AND MILITARILY.
THIS IS A STEP IN THE RIGHT
DIRECTION.
PHASE ONE OF THE TRADE DEAL
PUSHES BACK ON CHINA AND BEGINS
TO CREATE SOME FAIRNESS IN OUR
TRADE PRACTICES.
ALSO, LOU, I THINK IT GIVES US
SOME LEVERAGE AGAINST THE
CHINESE GEOPOLITICALLY.
I THINK IT HELPS DEALING WITH
THE HONG KONG ISSUE AND ALSO
HELPS DEALING WITH THE KOREAN
ISSUE.
THIS IS THE FIRST TIME THAT
CHINA HAS HAD SOMEBODY STANDING
UP TO THEM, AND NOW THE
PRESIDENT'S GOT SOME WIND AT HIS
BACK BECAUSE THERE'S CONSENSUS
IN THE UNITED STATES THAT CHINA
IS A PREDATOR.
AND THEY NEVER BECAME THE
COUNTRY MANY PEOPLE THOUGHT THEY
WOULD WHEN CAPITALISM WAS OPENED
UP, THAT THEY WOULD EVENTUALLY
HAVE POLITICAL REFORM.
THAT DIDN'T HAPPEN.
THEY'VE ACTUALLY CRACKED DOWN
MORE.
THEY'RE MORE AUTHORITARIAN
NOW --
LOU: I THINK YOU ARE RIGHT.
>> -- THEN THEY HAVE EVER BEEN.
LOU: GENERAL, NORTH KOREA, THE
PRESIDENT TODAY AND I JUST WANT
TO VERY QUICKLY SHOW THE
AUDIENCE HIS MOST RECENT TWEET,
SAYING HAD A VERY GOOD TALK WITH
PRESIDENT XI OF CHINA, IF WE
COULD PUT THAT UP, CONCERNING
THE GIANT TRADE DEAL.
CHINA'S ALREADY STARTED LARGE
SCALE PURCHASES OF AGRICULTURAL
PRODUCTS AND MORE.
FORMAL SIGNING BEING ARRANGED.
ALSO TALKED ABOUT NORTH KOREA,
WHERE WE ARE WORKING WITH CHINA
AND HONG KONG.
YOUR THOUGHTS ABOUT WHAT IS
MOVING AHEAD THERE, PARTICULARLY
WITH NORTH KOREA?
>> WELL, THE NORTH KOREANS ARE
VERY FRUSTRATED.
WE'RE GOING ALL THE WAY BACK TO
FEBRUARY, WHEN THEY WANTED
COMPLETE SANCTION RELIEF AND
WERE NOT GIVING US ANYTHING IN
RETURN FOR THAT, OF ANY
CONSEQUENCE, NOT A SINGLE
WEAPON, MISSILE OR NUCLEAR
CAPABILITY WAS GOING TO BE
DESTROYED.
SO THEY ARE BACK HERE TRYING TO
LEVERAGE US AGAIN BY THREATENING
THE SO-CALLED CHRISTMAS GIFT
WHICH IS LIKELY TEST-FIRING OF A
LONG RANGE MISSILE I WOULD
ASSUME.
THAT'S NOT GOING TO CHANGE
PRESIDENT TRUMP OR THIS
ADMINISTRATION'S DETERMINATION.
WE'RE GOING TO CONTINUE WITH
THOSE SANCTIONS.
AND I BELIEVE, LOU, THE RUSSIANS
AND THE CHINESE HAVE NEVER
FOLLOWED THE SANCTIONS THAT THEY
VOTED FOR IN THE U.N.
AND I THINK WE SHOULD PUT MORE
PRESSURE ON THEM TO CRACK DOWN.
THEY ARE PROVIDING ECONOMIC
ASSISTANCE TO NORTH KOREA.
LOU: I THOUGHT IT WAS
INTERESTING THAT THE DEFENSE
SECRETARY SAID VERY CLEARLY THAT
HE WOULD LIKE TO MOVE RESOURCES
FROM AFGHANISTAN TO SUPPORT THE
CHINA CHALLENGE TO U.S. POWER.
YOUR THOUGHTS ABOUT THAT VERY
DIRECT AND OPEN STATEMENT OF
PURPOSE.
>> WELL, I THINK IN GENERAL,
THAT IS WHAT WE'RE DOING.
WE HAVE RUSSIA AND CHINA AS
MAJOR COMPETITORS, AND WE'RE
ADJUSTING OUR RESOURCES GLOBALLY
TO FACE THAT THREAT.
AND THIS IS JUST A PIECE OF
THAT, BUT NONETHELESS, AN
IMPORTANT PIECE.
THERE'S MUCH THAT WE HAVE TO DO
IN TERMS OF MILITARY CAPABILITY
IN THE PACIFIC.
THE CHINESE ARE THE MOST RAPIDLY
GROWING MILITARY IN THE WORLD.
THEY DON'T HAVE THE KIND OF
DOMINANCE THAT WE HAVE, BUT THEY
HAVE VERY SPECIFIC CAPABILITY
THAT COULD CAUSE US A LOT OF
PROBLEMS AND PARTICULARLY WITH
OUR ALLIES, SO A STEP IN THE
RIGHT DIRECTION.
LOU: YOUR REACTION TO A SUBJECT
YOU AND I HAVE DISCUSSED OVER
THE YEARS, AND THEY ARE
ENCAPSULATED IN THE SO CALLED
AFGHANISTAN PAPERS, THE
DISASTER, THE DEVASTATION, AND
THE TREMENDOUS COST IN LIFE AND
TREASURE OF OUR VENTURE IN
AFGHANISTAN HAS COST AMERICA.
>> WELL, FIRST OF ALL, I DON'T
KNOW IF THERE REALLY WAS A
CONSPIRACY ORGANIZED AS SUCH, TO
DECEIVE THE AMERICAN PEOPLE.
THIS MUCH I DO KNOW, FROM THE
TIME WE MADE THE DECISION TO GO
TO IRAQ, AND THAT DECISION WAS
MADE IN DECEMBER OF 2001.
LOU: RIGHT.
>> RIGHT AFTER WE HAD TAKEN DOWN
THE TALIBAN IN AFGHANISTAN.
AS A RESULT OF THAT DECISION,
FOR THE NEXT SEVEN YEARS, WE
NEVER HAD THE RESOURCES RIGHT.
THEREFORE, WE DIDN'T HAVE THE
STRATEGY RIGHT.
AND THEN WHEN OBAMA CAME IN, HE
NEVER GAVE THE MILITARY THE
RESOURCES THAT THEY WANTED TO
HAVE.
HE CUT THEM 25% OF WHAT WAS THE
MINIMUM REQUIRED TO WIN.
THAT'S WHAT GENERAL PETRAEUS AND
McCHRYSTAL BOTH VERY CAPABLE
PEOPLE, HIGHLY RESPECTED WAS
THEIR RECOMMENDATION.
YEAH, I MEAN, MY FRUSTRATION IS
WE HAVE NEVER HAD THIS THING
RIGHT, LOU.
NEVER HAVE WE HAD IT RIGHT.
THAT'S THE CONCERN I HAVE.
I DON'T KNOW ENOUGH ABOUT THE
SPECIFICS OF IT IN TERMS OF A
CONSPIRACY TO DECEIVE THE
AMERICAN PEOPLE.
THE GENERALS I KNOW WOULD NOT DO
SOMETHING LIKE THAT.
BUT I ALSO KNOW THAT THEY WERE
VERY FRUSTRATED BECAUSE THEY
NEVER HAD THE TOOLS THAT THEY
WANTED.
LOU: THEIR FRUSTRATION, THE
AMERICAN PEOPLE'S FRUSTRATION,
THE BLOOD LOST THAT WAS -- I
DON'T BELIEVE ADEQUATELY
ACKNOWLEDGED ON THE PART OF THE
AMERICAN PEOPLE, EVEN PARTY BY
PARTY OR POLITICIAN BY
POLITICIAN, BUT TO SEE THESE
ELEMENTS OF THE AFGHANISTAN
PAPERS ARE ONLY COMING OUT THAT
THERE HAD BEEN RESISTANCE TO
MAKING THEM PUBLIC IS A SHAME.
NOW, I THINK THAT YOU MAKE A
POINT THAT IS VALID.
THE AMERICAN PEOPLE KNEW THAT
THIS WAS COSTING WAY TOO MUCH,
BOTH IN LIFE, IN TIME, AND
TREASURE.
WE KNEW THAT IT WAS COSTING
TRILLIONS OF DOLLARS, AND YET
THERE WAS STILL NO CONSENSUS
WITHIN OUR SENATE, OUR CONGRESS,
CERTAINLY THE WHITE HOUSE, TO
BRING THE MILITARY -- TO REIN
THEM IN AND TO FOCUS THEM.
INDEED, IT WAS THE OPPOSITE.
THEY TRIED TO AVOID CONSEQUENCE,
AND AS A RESULT, CREATED FAR
WORSE CONSEQUENCES IN COSTS THAN
SHOULD HAVE EVER BEEN PERMITTED
BY THE AMERICAN PEOPLE.
>> I CAN'T GO AS FULLY THERE AS
YOU'VE JUST DONE BECAUSE --
LOU: GENERAL, I WAS INVITING YOU
TO DO SO, SO NICELY.
[LAUGHTER]
>> I KNOW.
I KNOW, LOU.
WE WENT TO AFGHANISTAN BECAUSE
OF 9/11 AND THE 3,000 DEAD THAT
WE HAD, AND WE WERE TRYING TO
PREVENT THAT FROM EVER HAPPENING
AGAIN AND DO AS MUCH DAMAGE TO
AL QAEDA AS WE COULD.
WE HAVE ACCOMPLISHED THAT
MISSION.
THEY HAVE NOT BEEN ABLE TO
CONDUCT ANOTHER STRATEGIC --
STRATEGIC ATTACK LIKE THEY DID
ON THE HOMELAND BECAUSE WE HAVE
KEPT OUR FOOT ON THE THROAT OF
AL QAEDA AND WE HAVE USED BASES
IN AFGHANISTAN, LOU, TO ATTACK
THE AL QAEDA IN PAKISTAN, AND WE
DO THAT ON A REGULAR BASIS.
LOU: RIGHT.
>> AND WE DON'T WANT THEM TO
ESTABLISH A SAFE HAVEN AGAIN.
SO THAT IS SOMETHING THE
AMERICAN PEOPLE GOT TO BE AWARE
OF.
I'M NOT GOING TO GO ANYWHERE
NEAR THE FACT THAT ANYBODY SAYS
THAT WE SQUANDERED 2300 LIVES IN
AFGHANISTAN.
THAT'S JUST NOT --
LOU: THAT ISN'T MY WORD.
I DIDN'T SAY SQUANDERED.
>> I KNOW YOU DIDN'T, BUT OTHER
PEOPLE ARE SAYING THAT, BUT THE
FACT IS WE WENT THERE TO PREVENT
THE AL QAEDA FROM ATTACKING
AGAIN, AND WE HAVE ACHIEVED
THAT, AND WE'RE CONTINUING TO
ACHIEVE THAT.
LOU: GENERAL, ALWAYS, ALWAYS
EDUCATIONAL TO TALK WITH YOU.