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Indiana University strengthens tomorrow's workforce with practical, real world experience. IU grads make a difference in your community, serving as teachers, nurses and engineers who rise to tomorrow's challenges and meet them. Learn more at iu.edu impact Bloomberg Audio Studios Podcasts Radio news welcome to Lloyd
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J. Austin, former U.S. defense secretary and co founder and CEO of Clarion Strateg. Secretary Austin, thank you for speaking with us. Just this morning, President Trump called for Israel and Iran to cease their fighting. What does a continuing war in the Middle east mean for US Defense capabilities?
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Well, certainly we would like to see this ceasefire hold so that we can get negotiations completed and then we can get the strait open again. It's, I mean, it's important to, not only to the United States, but the entire global economy. And, and so the sooner we can do that, the better. And we can't get there until we stop, stop fighting. So, as you know, Lebanon or Israel has been attacking Hezbollah in Lebanon. And yesterday Iran voiced its concern by launching an unprecedented attack on Israel as a part of this. And Israel has responded. But we'd like to see that tamped down so that we can get on with the business of negotiating the agreement.
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B
What are the military options to reopening the Strait of Hormuz?
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C
Well, certainly the United States Navy could open a strait for Hormuz, and holding it open for a long period of time would be pretty costly. And so we'd like to see an international effort if that's the case. If we get it open, we want to get allies and partners involved in that, because freedom of navigation is not just important to the United States of America, it's important to the entire globe. You know, every country on this planet has, has an interest in making sure that they can sail the seas and fly the sky. International skies, as they should be, in accordance, should be able to in accordance. Accordance with international law.
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B
You spoke of an international effort. Europe is in the middle of the two wars waging right now in the Middle east as well as in Russia and Ukraine. Are European nations doing enough and fast enough to increase their defense capabilities?
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C
What we're seeing in Europe right now is a significant investment in, in their own defense capabilities. There are a number of countries that have increased their spending and we see countries far exceeding in some cases, the, the expected 2% of GDP investment. And so I'm pretty optimistic about the direction of travel here. It'll be important that Europe continue to work together. The countries work together in Europe to create a capability that, that allows them to, to operate on an interactive basis going forward. So again, the investment is exciting. It'll take the industrial base some time to be able to ramp up to create the kind of capability that Europe believes it needs. So we're looking forward to that.
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B
And how important is NATO for America and what's America's involvement in it going to look like, you think, going forward?
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C
Well, as you know, NATO is the most successful defensive alliance in the history of the world. And you know, we have, we have an interest in a transatlantic cooperation. Europe has an interest in transatlantic cooperation. So it's important to both of us. I am hopeful and somewhat confident that NATO will not only sustain itself, but continue to grow. So.
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B
And do you think America needs to rethink its strategy of having troops on the ground in allied countries, given there is an increasing America first policy and the conflicts are so global right now?
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C
Well, each administration will assess its force posture and continue to make adjustments as it sees fit. There are opportunity costs, you know, in whatever you do. And so it's always kind of balancing the scales there to make sure that you have the right capabilities in the right places. And again, I won't speak for the administration. That's something that they'll do on a, on a, on a day to day basis.
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B
Are you worried that there's an increased chance of China invading Taiwan because of US Vulnerabilities as it fights the war in the Middle East?
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C
I think, you know, what we've seen as a result of the summit that was conducted in May, I think, you know, there's probably less risk of escalation going forward here in the near term. Having said that, there are a number of things that we're going to have to continue to work on with respect to our relationship with China. I don't think that President Xi wants to take Taiwan by force. That's my belief. I believe that if he could do it through coercion and, and demonstration of military capability, that then he would, he would do it that way. If there's a fight in the Taiwan Strait or in the vicinity of the Taiwan Strait, it will have a much greater impact on the global economy than what we've seen in the Strait of Hormuz.
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B
And what did you make of Secretary Pete Hegsett's D Day anniversary remarks calling an immigrant invasion in Europe?
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C
Certainly I don't have any comments on Secretary's remarks. What I would say is that our European allies are important to us. They've always been important to us. The sacrifices that our troops made on D Day many years ago, I Think set an example for the world. And we remain grateful for, you know, what allies and, and partners did as a part of that, that great effort. And so, you know, we honor that, that sacrifice each and every year. And again, I am very appreciative of what our allies continue to do for the United States of America.
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B
And you know, speaking of the military, Secretary Hegseth is also reported to have removed women and people of color from promotion lists in the army and the Navy. What is the message you think that sends about the US Military?
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C
Certainly I leave it to the secretary to really explain why, you know, why he made those moves. All of us serve at the discretion of the President and so why those moves were made. I guess I won't try to, won't try to comment on that. I would just say that, you know, we value, we've always valued the contributions of our officers. They are the best in the world. We've seen that demonstrated certainly most recently as our military has performed in impressive fashion. And it's performed that way because it's been led by some very competent men and women. I think our country has long regarded the military as being the closest thing to a meritocracy in this country and I would hope that it remained that way again. As you, as you develop and groom officers for certain positions, you want to select the best available talent. And I think that's been done over the years. And when you lose that town, that talent, it takes a long time to replace it. You know, the experience that those, those men and women have is, I mean, there are people who will step up and assume, assume those positions. But, but I think, you know, the loss of those people certainly has an impact.
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B
Secretary Austin, thank you for your time. Thank you for joining Ryan Reynolds here
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