♪.
LARRY: FIVE YEARS AGO TODAY MY
FORMER BOSS, PRESIDENT
DONALD TRUMP, ANNOUNCED HE WAS
MOVING THE U.S. EMBASSY IN
ISRAEL TO JERUSALEM, RECOGNIZING
IT AS THE TRUE CAPITAL OF
ISRAEL.
SO JOINING US NOW TO TALK ABOUT
THAT AND MANY OTHER THINGS WE
WELCOME ISRAELI PRIME
MINISTER-ELECT MR. BENJAMIN
NETANYAHU.
HE IS THE AUTHOR OF A TERRIFIC
NEW BOOK, CALLED, "BIBI," MY
STORY.
PRIME MINISTER, WELCOME.
YOU WERE GREAT ON THE RADIO.
WE WON’T HAVE YOU QUITE AS LONG
ON TV BUT WE APPRECIATE IT VERY,
VERY MUCH.
>> GOOD TO BE WITH YOU, LARRY.
LARRY: PRIME MINISTER, LET ME
START WITH THIS KNIFE YEAR
ANNIVERSARY.
HOW IMPORTANT WAS IT?
MANY PRESIDENTS IN THE U.S. SAID
THEY WOULD BUT ONLY TRUMP
FOLLOWED THROUGH.
WE MOVED IT.
IT IS STILL IN JERUSALEM.
HOW IMPORTANT WAS THAT, SIR?
>> I THINK IT WAS ACTUALLY VERY
CRUCIAL BECAUSE THE, IT
RECOGNIZED A 3,000-YEAR-OLD
TRUTH, 3,000 YEARS AGO KING
DAVID YOU REMEMBER FROM THE
BIBLE, KING DAVID PROCLAIMED
JERUSALEM AS OUR CAPITAL.
IT TOOK 3,000 YEARS FOR THE
UNITED STATES, IN ITS 200 SOME
YEAR HISTORY TO RECOGNIZE THAT
SIMPLE FACT AND I HAVE TO SAY
THAT IT WAS THE BEGINNING OF A
GENERAL RECALIBRATION OF THE
ATTITUDE OF MANY IN THE WORLD
TOWARDS ISRAEL BECAUSE YOU CAN’T
BUILD A TRUTH, YOU CAN’T BUILD
PEACE ON FALSEHOODS.
SOONER OR LATER THEY CRASH ON
THE REALITIES OF THE MIDDLE EAST
AND HERE PRESIDENT TRUMP
RECOGNIZED THE BASIC TRUTH,
JERUSALEM IS THE ETERNAL CAPITAL
OF ISRAEL, OF THE JEWISH STATE
AND I THINK IT OPENED UP THE
PATH FOR MANY OTHER THINGS THAT
HAPPENED, GOOD THINGS.
LARRY: WELL IN THE BOOK YOU TALK
ABOUT ANOTHER VERY IMPORTANT
SPOT, I THOUGHT.
YOU SPOKE TO CONGRESS, U.S.
CONGRESS.
YOU WERE NOT HAPPY WITH THE
OBAMA ADMINISTRATION’S
APPROACHES TO PALESTINE OR IRAN
FOR THAT MATTER.
WHEN YOU SPOKE THERE, DO YOU
THINK THAT SPEECH LAID THE
GROUNDWORK, CREATED SOME
INTELLECTUAL FOUNDATION THAT
ULTIMATELY LED TO A
DONALD TRUMP, MOVING THE EMBASSY
TO JERUSALEM, TO A DONALD TRUMP
WITHDRAWING FROM THE IRANIAN
NUCLEAR ACCORDS?
HOW IMPORTANT WAS THAT
CONGRESSIONAL SPEECH?
AM I RIGHT IN ASSUMING THAT IT
HAD MAJOR, MAJOR CONSEQUENCES,
POSITIVE CONSEQUENCES DOWN THE
ROAD?
>> WELL I THINK IT WAS
IMPORTANT, AND I DEVOTE SOME
TIME IN MY BOOK FOR IT BECAUSE
IT DID TWO THINGS.
ONE, IT RAISES THE BANNER ON A
WORLD SCALE, CERTAINLY IN
AMERICA, CONGRESS, JOINT SESSION
OF CONGRESS, BUT FOR WORLD
PUBLIC OPINION ABOUT THE DANGERS
OF IRAN NUCLEAR DEAL.
TODAY FIVE YEARS LATER, SEVEN
YEARS LATER, ACTUALLY, PEOPLE
KNOW WHAT THIS REGIME IS ABOUT.
IT HAS BEEN UNMASKED IN THESE,
THIS HORRIBLE OPPRESSION,
SUBJUGATION OF THE BRAVE IRANIAN
MEN AND WOMEN WHO ARE DYING IN
THE STREETS FIGHTING FOR THEIR
FREEDOM.
TO HAVE THIS COUNTRY GET A
NUCLEAR DEAL THAT WOULD PAVE ITS
WAY WITH GOLD, HUNDREDS OF
BILLIONS OF DOLLARS IT COUSE TO
SPAWN TERROR, BUILD A NUCLEAR
ARSENAL WITH MINIMAL DELAY WOULD
BE A MISTAKE.
I THINK, IT LAUNCHED THIS NEW --
I THINK PRESIDENT TRUMP
SUBSCRIBED TO IT, IT WOULD GAVE
I WOULD SAY, A BACK WIND TO THIS
ATTITUDE THAT YOU HAVE WITHDRAW
FROM THIS DANGEROUS DEAL AND YOU
HAVE TO TAKE ACTIVE MEASURES TO
PREVENT IRAN FROM GETTING
NUCLEAR WEAPONS WHICH WOULD
THREATEN NOT ONLY ISRAEL BUT
WOULD THREATEN THE UNITED
STATES.
THAT’S THE FIRST THING THAT WAS
IMPORTANT.
THE SECOND THING WAS THAT, WHILE
I WAS GIVING THIS SPEECH IN
CONGRESS, WHICH, WAS VERY
DIFFERENT FOR ME TO DECIDE,
CHALLENGE A SITTING AMERICAN
PRESIDENT WHO I DISAGREED WITH,
I RESPECTED, NOT AN EASY THING
FOR ISRAEL TO DO THAT, I DID IT
BECAUSE MY COUNTRY’S VERY
EXISTENCE I THOUGHT WHEN I WAS
IN DANGER, WHEN I GAVE THAT
SPEECH, AS I WAS GIVING IT, WE
GOT PHONE CALLS FROM
GOVERNMENTS, GULF STATE
GOVERNMENTS SAYS WE CAN’T
BELIEVE WHAT YOU’RE PRIME
MINISTER IS DOING, CHALLENGING
AN AMERICAN PRESIDENT AND, THAT
LED TO CLANDESTINE MEETINGS IN
2015 BETWEEN ME AND CERTAIN GULF
LEADERS AND THAT LAID THE
FOUNDATION FOR THE
"ABRAHAM ACCORDS."
I HAVE ALWAYS BELIEVED THAT THE
WAY WE COULD EXPAND PEACE WAS GO
TO THE ARAB WORLD AND NOT BE
STYMIED BY THE PALESTINIAN
STRAITJACKET BECAUSE THE
PALESTINIANS DON’T WANT PEACE
WITH IS RAIL BUT THE ARAB STATES
WANT THAT.
THE THAT SPEECH OPENED THE PATH
WHAT LATER BECAME THE
"ABRAHAM ACCORDS," FOUR HISTORIC
PEACE AGREEMENTS BETWEEN ISRAEL
AND ARAB STATES AND ALSO WITH
THE HELP OF PRESIDENT TRUMP AND
HIS STAFF.
LARRY: AND THE "ABRAHAM ACCORDS"
CHANGED THE MAP IN THE
MIDDLE EAST.
IT CHANGED THE WHOLE IDEA OF
GETTING PEACE IN THE
MIDDLE EAST.
REMOVED CENTRALITY OF PALESTINE
IN THE MIDDLE EAST.
I CAN’T THINK OF ANYTHING MORE
IMPORTANT THAN THAT.
I WILL COME BACK TO THE IRANIAN
ISSUE IN A MINUTE, SIR, BUT I
THINK YOU KNOW, MOVING THE
EMBASSY, THE "ABRAHAM ACCORDS,"
A LOT OF THIS STUFF MAY HAVE
GONE BACK TO THAT ORIGINAL
SPEECH IN CONGRESS THAT YOU MADE
WHICH WAS, IF YOU WILL PARDON MY
FRENCH, QUITE A A B.A. LSY MOVE.
>> WELL, I RECEIVE COMPLIMENTS
IN ANY LANGUAGE.
I WILL SAY THIS LARRY, I HAD A
VISION FOR MANY YEARS WHICH WAS
BASICALLY CONTESTED BY ALL THE
FOREIGN POLICY ELITES, NOT ONLY
IN THE UNITED STATES AND IN
EUROPE BUT ALSO IN ISRAEL, FOR
YEARS THEY SAID THE ONLY WAY YOU
WILL BREAK OUT TO AD BROTHER
PEACE BETWEEN ISRAEL AND THE
ARAB WORLD AND THERE ARE OVER 20
ARAB STATES YOU FIRST HAVE TO
SOLVE THE PROBLEM WITH THE
PALESTINIANS.
THE PROBLEM WITH THAT IS, THAT
THE PALESTINIANS DON’T WANT
PEACE.
THEY DON’T WANT PEACE WITH
ISRAEL.
THEY WANT A PEACE WITHOUT
ISRAEL.
SO AFTER THE FIRST TWO PEACE
AGREEMENTS THAT WE HAD WITH
EGYPT AND WITH JORDAN, WE WAITED
FOR 25 YEARS FOR THE
PALESTINIANS TO MAKE PEACE WITH
US AND THEY WOULDN’T MAKE IT
BECAUSE THEY WANT TO SEE THE
DISAPPEARANCE OF ISRAEL.
AND THEREFORE WE COULD WAIT
ANOTHER QUARTER OF A CENTURY,
ANOTHER HALF CENTURY, WE STILL
WOULDN’T GET PEACE.
I ALWAYS BELIEVED WE SHOULD, YOU
KNOW THE PALESTINIANS ARE
WELCOME TO COME TO NEGOTIATE A
GENUINE PEACE ANYTIME THEY WANT.
WE SHOULDN’T WAIT FOR THEM.
WE SHOULD GO OUT TO THE ARAB
WORLD.
I THOUGHT THE RISE OF ISRAELI
POWER, THE RISE OF ISRAELI
TECHNOLOGICAL, ECONOMIC, DEFENSE
POWER, CYBER POWER THAT MADE US
VERY ATTRACTIVE TO THE ARAB
COUNTRIES.
AS THE THREAT OF IRAN ROSE, THE
POWER OF ISRAEL ROSE, MANY ARAB
COUNTRIES STARTED SEEING ISRAEL
NOT AS THEIR ENEMY BUT THEIR
INDISPENSABLE ALLY FOR TWO
THINGS, ONE, TO CREATE A
BARRICADE IF YOU WILL AGAINST
IRANIAN AGGRESSION WHICH
THREATENS THEM AS WELL BUT ALSO
AS A SOURCE OF GREAT INNOVATION
THAT COULD HELP THE LIVES OF
THEIR PEOPLE IN SOME AREAS.
DESALINATION, ENERGY, DIGITAL
TECHNOLOGY, MEDICINE, YOU NAME
IT.
SO I BELIEVE WE SHOULD CREATE
THIS DIFFERENT KIND OF PEACE
THAT GOT AWAY FROM THIS
PALESTINIAN RABBIT HOLE.
ONCE WE DID, AMAZING THINGS
HAPPENED.
I DON’T KNOW IF PEOPLE KNOW
THAT, HUNDREDS OF THOUSANDS OF
ISRAELIS FLY OVER THE SKIES OF
SAUDI ARABIA TO DUBAI, TO
ABU DHABI, TO BAHRAIN.
THEY FORM JOINT VENTURES,
BILLIONS AND BILLIONS OF DOLLARS
OF JOINT VENTURES AND ECONOMIC
TRADE.
MILLIONS OF JEWS AND ARABS
DANCING IN THE STREETS OF DUBAI.
IT IS REAL STRENGTH.
PEACE FROM AND FOR PROSPERITY.
LARRY: I THINK, OPEN TRADE, OPEN
INVESTMENT, PROSPERITY, MAKES IT
A LOT EASIER FOR PEACE.
YOU AND I DISCUSSED ABOUT THIS.
IN FACT YOU YOURSELF TURNED
ISRAEL’S ECONOMY AROUND.
YOU ARE A FREE MARKET CAPITALIST
AND, WHEN YOU WERE FINANCE
MINISTER LET ALONE YOUR TIMES AS
PRIME MINISTER YOU MADE ISRAEL
AN ECONOMIC POWERHOUSE.
I JUST WANT TO HAD -- ADD TO
THAT, YOU’RE SITTING ON A LOT OF
NATURAL GAS RESERVES IN THE
EASTERN PART OF MEDITERRANEAN
WILL MAKE IT EVEN A GREATER
POWERHOUSE IF YOU LET THE FREE
MARKET DEVELOP IT.
>> WELL, FIRST OF ALL WE WERE
LUCKY WE DISCOVERED THE GAS LATE
IN THE GAME BECAUSE WE HAD TO
LIVE BY OUR WITS.
THE ONLY PROBLEM WAS WE HAD A
LOT OF WITS BUT NOT FREE
MARKETS.
I WROTE A COUPLE CHAPTERS IN MY
BOOK HOW I LED THE FREE-MARKET
CAPITALISM IN ISRAEL TURNING
FROM A SEMISOCIALIST ECONOMY TO
ONE OF THE WORLD’S MOST ROBUST
ECONOMIES.
WE HAD TECHNOLOGY BECAUSE OF
MILITARY.
TECHNOLOGY AND EDUCATION DOESN’T
MAKE YOU RICH, IT JUST DOESN’T.
LOOK AT THE FORMER SOVIET UNION.
THEY HAD METAL LURISTS,
MATHEMATICIANS, PHYSICISTS IT
DIDN’T HELP THEM A BIT.
IN FACT THEY WERE DIRT POOR.
TECHNOLOGY AND EDUCATION DO NOT
MAKE YOU REACH.
FREE MARKETS DO.
COMBINATION OF FREE MARKETS AND
TECHNOLOGY WHICH WAS MY VISION
OF ISRAEL WAS, MAKES YOU A
JUGGERNAUT OF ECONOMIC SUCCESS.
WE’VE OVERTAKEN WITH THE REFORMS
I DESCRIBED IN MY BOOK, WHICH
WERE NOT EASY TO ACHIEVE, I CAN
TELL YOU, WE TURNED ISRAEL,
ISRAEL GDP PER CAP AT THIS TIME
AT THAT WITH REFORMS SURPASSED
THAT OF BRITAIN, FRANCE, JAPAN,
MOST RECENTLY GERMANY.
WE’RE WELL UNDERWAY.
WE AN USE THAT I ALWAYS BELIEVED
WE CAN USE THAT TO STRENGTHEN
OUR MILITARY, FUNDING OUR
MILITARY WHICH WE COULDN’T WITH
A SEMISOCIALIST ECONOMY OVER
TIME AND THE TWO OF THESE
POWERS, THE MILITARY PROWESS
FUNDED BY ECONOMIC FREE MARKET
PROWESS HAS MADE ISRAEL, GAVE
ISRAEL DIPLOMATIC PROWESS WITH
THE ARAB COUNTRIES, BY THE WAY
WITH MANY, MANY COUNTRIES AROUND
THE WORLD.
I HAD TO FIGHT TO GET THE, AS
FAR AS THE GAS IS CONCERNED,
WELL, WE FOUND THE GAS.
YOU KNOW WHEN WE FOUND ISN’T WE
HAD A GOVERNMENT GAS EXPLORATION
COMPANY FOR 50 YEARS.
WE FOUND NOTHING.
THE MINUTE WE PRIVATIZED IT, WE
HAVE FOUND GAS DEPOSITS.
I LOVE THAT.
>> I COULDN’T GET THEM OUT OF
THE WATER.
I DESCRIBED THAT TOO, I COULDN’T
BECAUSE THE ULTRAPROGRESSIVE
LOBBY SAID KEEP IT IN THE OCEAN.
THIS IS GOING TO I DON’T KNOW
HURT OUR ENVIRONMENT.
HURT OUR ENVIRONMENT?
WE’RE BURNING COAL?
NOW WE HAVE GAS, NATURAL GAS.
WHAT COULD BE BETTER?
ANYWAY I HAD TO FIGHT THEM AND
GOT IT OUT.
NOW ISRAEL IS ENERGY INDEPENDENT
AND EXPORTING GAS, BEGINNING TO
EXPORT GAS TO EUROPE, BOY DO
THEY NEED IT.
LARRY: THERE IS A RUMOR, I MEAN,
I DON’T KNOW, PEOPLE MAY NOT
KNOW YOU WENT TO MIT AND
GRADUATED WITH A DEGREE THERE
BUT THERE IS A RUMOR WHEN YOU
WERE FINANCE MINISTER YOU
CONSULTED IN NEW YORK WITH
PEOPLE LIKE JACK KEMP AND EVEN
LARRY KUDLOW.
I CAN’T SUBSTANTIATE THAT RUMOR
BUT IT IS JUST A RUMOR.
>> YEAH I HEARD THAT RUMOR.
I CAN SUBSTANTIATE IT.
I REMEMBER MEETINGS I HAD WITH
YOU, AND JACK KEMP, THE LATE
JACK KEMP.
YOU KNOW WHAT JACK TOLD ME.
HE HEARD MY IDEAS, I HAD A LOT
OF FREE MARKET REFORMS, CUT
WELFARE, EXCEEDINGLY HARD, BRING
DOWN GOVERNMENT SPENDING AND
JACK SAID, WELL YOU HAVE TO DO
THREE THINGS, CUT TAXES, CUT
TAXES, CUT TAXES.
LARRY: [LAUGHTER]
>> SO I DID.
I CUT TAXES BUT, LARRY, HERE’S
THE THING, I CUT TAXES BUT I
ALSO CUT GOVERNMENT SPENDING.
LARRY: YES.
>> IT IS EASY TO CUT TAXES.
IT IS HARD TO CUT GOVERNMENT
SPENDING.
THE COMBINATION OF THE TWO,
ALONG WITH DEREGULATION ON A
BROAD FRONT REALLY MADE THESE
ISRAELI ECONOMY SURGE FORWARD.
BUT IT WAS TOUGH.
YOU KNOW, WHEN I HAD TO, WHEN I
TOOK OVER THE FINANCE MINISTRY,
AFTER I HAD LOST MY FIRST STINT
AS PRIME MINISTER, I WAS OUT OF
A JOB.
I WAS OFFERED A JOB TO COME BACK
AFTER I HAD AN ENJOYABLE
REPRIEVE WITH MY FAMILY BUT I
WAS OFFERED THE JOB OF FINANCE
MINISTER IN THE WORST ECONOMIC
CRISIS IN DECADES AND MY STAFF
TOLD ME, DON’T DO IT.
DON’T DO IT.
YOU’RE COMING INTO AN ECONOMIC
CRISIS.
YOU’RE GOING TO HAVE TO MAKE
DIFFICULT BUDGET CUTS.
YOU WILL NEVER GET BACK TO THE
PRIME MINISTER’S OFFICE.
I THOUGHT ABOUT IT, I SAID WELL
WHY DO I WANT TO COME BACK TO
THE PRIME MINISTER’S OFFICE?
ONE, TO STOP IRAN BUT SECOND, TO
TURN ISRAEL INTO A FREE MARKET
JUGGERNAUT.
SO MAYBE I WILL ACCOMPLISH AT
LEAST ONE OF THESE THINGS.
IT IS WORTH A TRY.
WHEN I CAME IN I FOUND THAT THE
SITUATION WAS HORRIBLE.
SO I HAD THREE WEEKS TO TELL THE
ISRAELI PUBLIC WHAT I WAS GOING
TO DO BECAUSE I WANTED TO LAWN
OF MY RECOVERY PLAN AS FAST AS
POSSIBLE.
YOU KNOW I THOUGHT HOW WILL I
EXPLAIN TO SEMISOCIALIST ISRAEL
WHAT IT IS THAT WE WERE GOING TO
DO?
AND I THOUGHT ABOUT IT.
WELL THE ONE COMMON EXPERIENCE
IS NOT LEMONADE STANDS,
COMPETING LEMONADE STANDS USED
TO BE FAMILIAR IN THE UNITED
STATES BUT THE MILITARY.
SO I FELL BACK ON MY FIRST DAY
IN THE MILITARY AND PARATROOPS,
BASIC TRAINING.
COMMANDER PUTS US IN A STRAIGHT
LINE AND HE SAYS, NOW WE’RE
GOING TO TAKE A SPECIAL KIND OF
RACE.
POINTS TO ME, YOU, NETANYAHU,
LOOK AT THE MAN ON YOUR RIGHT
PUT HIM ON YOUR SHOULDERS.
I DID.
GO THE NEXT ONE YOU LOOK TO MAN
ON YOUR RIGHT, PUT ON SHOULDERS.
HE BLOWS THE WHISTLE, HE STARTS
THE RACE.
I HAD A BIG GUY ON MY SHOULDERS,
I COULD BARELY TAKE STEPS.
THE THIRD GUY WAS A BIG GUY HAD
RELATIVELY SMALL GUY, HE SHOT
OFF LIKE A ROCKET TOOK THE RACE.
I SAID ALL NATIONAL ECONOMIES
ARE CARES OF PUBLIC SECTOR
SITTING ON THE PRIVATE SECTOR
THAT WANTS TO CARRY THE LOAD.
IN OUR CASE THE PUBLIC SECTOR
GOT TOO FAT.
THE FAT MAN THEY CALLED IT.
HE IS CARRIED BY THE THIN MAN.
WHAT DO YOU HAVE TO DO, PUT THE
FAT MAN ON A DIET GIVE A LOT OF
OXYGEN TO THE THIN MAN WHICH
MEANS LOWER TAXES, LOWER, TAXES
LOWER TAXES.
COURTESY OF KUDLOW AND KEMP
START RUNNING.
WHEN YOU RUN, YOU HIT A DITCH,
YOU HIT A WALL, HIT A FENCE.
THAT IS CALLED BARRIERS TO
COMPETITION.
YOU HAVE TO REMOVE THOSE.
BASICALLY DID THE THREE THINGS,
ABOUT 80 REFORMS ALL TOGETHER.
DONE IN TANDEM AND BECAUSE YOU
KNOW WHY IN TANDEM?
ANY ONE OF THEM WOULD GET YOU
THREE MONTHS GENERAL STRIKE,
LABOR STRIKE.
SO I FIGURED I COULD MAXIMIZE
THE NUMBER OF REFORMS PER LABOR
STRIKE.
THAT IS WHAT WE DID.
IT JUST MADE ALL OF A DIFFERENCE
LARRY: I THINK IT’S A GREAT
STORY.
YOU TALK A LOT ABOUT PEACE
THROUGH STRENGTH.
I LEARNED THAT FROM REAGAN,
MANY, MANY YEARS AGO.
I THINK A STRONG ECONOMY IS THE
BASIS OF PEACE THROUGH STRENGTH.
THAT THROWS OFF THE RESOURCES
THAT YOU NEED IN YOUR BATTLES
AHEAD.
ANYWAY, MR. PRIME MINISTER, WE
APPRECIATE IT VERY, VERY MUCH.
GOOD LUCK IN YOUR NEXT TERM.
WE’RE ROOTING FOR YOU.
US FREE MARKET CAPITALISTS TYPES
AND ALSO PEOPLE WHO BELIEVE IN
FREEDOM AND DEMOCRACY AND
ISRAEL.
MR. BENJAMIN NETANYAHU.
BY THE WAY, FOLKS, THE NAME OF
THE BOOK IS "B-IBI."
PUT IT BACK ON THE SCREEN.
HIT BEST-SELLER’S LIST.
MY STORY.
TERRIFIC STUFF.