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New Day
Second Potential Case Of Mystery Illness Near White House; Man Suspected In Wife's Death Voted For Trump In Her Name; Space Force Commander Fired After Remarks On Conservative Podcast. Aired 7:30-8a ET
Aired May 17, 2021 - 07:30 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[07:30:00]
BRIANNA KEILAR, CNN ANCHOR: Oh, was it --
JOHN BERMAN, CNN ANCHOR: "The Wedding Planner" -- "The Wedding Planner."
MAGGIE HABERMAN, CNN POLITICAL ANALYST, WASHINGTON CORRESPONDENT, THE NEW YORK TIMES: Yes.
KEILAR: Yes, that one.
BERMAN: "The Wedding Planner." Maggie Haberman with me -- "The Wedding Planner."
KEILAR: You guys have terrible -- you guys have terrible taste but I'm glad that, you know, you're so good with your political commentary.
BERMAN: No one gets killed in "The Wedding Planner" unlike "True Detective."
(Laughter)
BERMAN: All right.
KEILAR: Good to see you, Maggie.
BERMAN: Thank you, Maggie.
HABERMAN: Thank you.
BERMAN: OK, big news overseas. Israel launching a new wave of airstrikes in Gaza after the deadliest day yet in the Israeli- Palestinian conflict. I live report just ahead.
KEILAR: Plus, two U.S. officials struck by a mystery illness last year near the White House. Who or what is behind these strange episodes.
(COMMERCIAL BREAK) KEILAR: For five years, investigators have struggled to explain strange experiences reported by U.S. diplomats and other government workers in Cuba, Russia, China, and also other places in the world. These are episodes that, in some cases, have led to chronic headaches and brain injuries.
And now, CNN is learning that two U.S. officials were struck by this mystery illness late last year, including one right by the White House.
[07:35:03]
CNN's Katie Bo Williams is here with more. This is incredibly alarming right by the White House. What more do we know about these cases?
KATIE BO WILLIAMS, CNN REPORTER: So what we've learned is that two members of the president's National Security Council were affected by this kind of strange constellation of symptoms right by the entrance -- right by the entrance to a White House facility.
So one of them was actually walking from their car and going through an unmanned gate and entering the White House the day after the election, at the time that this person was sort of struck by these strange symptoms. The other one was also a few weeks later near an entrance to the White House grounds.
KEILAR: Do officials have any idea what is making people sick?
WILLIAMS: I -- the short answer to that is no. The CIA director is actually getting briefed quite literally every day on this right now, so it tells you how seriously the Intelligence Community is taking this issue. But while there's some thought that it might be Russia, it might be China, because they don't have a good sense of what the technology that's being used here is, they're not even sure whether they can definitively call this an attack.
There's some thought that it might also be, perhaps, an adversary trying to collect data out of officials' cell phones and they just have the juice turned up too high. So it's truly a mystery.
KEILAR: Just a quick question. You may or may not know the answer to this. But would that involve some sort of like line of sight to the victims of these attacks?
WILLIAMS: So one of the really difficult things about this problem set is that they don't really know what the "machine" would look like that might be able to create these kind of invisible symptoms because as of yet, nobody's really seen anything. There's some circumstantial evidence but they don't have a good sense of, again, what the technology is. What kind of device might cause this?
So the answer to that is nobody really knows right now.
KEILAR: It is incredibly troubling. As you said, it has affected Americans in many places, including their children who have been with them. That's one of the most alarming details that we've seen. Katie Bo Williams, great reporting. Thank you so much.
WILLIAMS: Thanks so much.
KEILAR: John.
BERMAN: So, COVID cases are down, the economy on the rebound, but you may have also noticed that the price of just about everything has been going up. Why?
Well, economists, including former Treasury Sec. Larry Summers, are split on whether that's just a blip on the road to recovery or whether we could be looking at the beginning of runaway inflation. Summers is warning of the rising risk of a Vietnam-inflation scenario.
And joining us now is the former Treasury secretary, Larry Summers, leading economist and top economic adviser to formers Presidents Obama and Clinton. Secretary, thanks so much for being with us.
The White House and the Fed both think that these inflation spikes we are seeing are transitory. They won't last, in other words. You think differently. Why?
LAWRENCE SUMMERS, FORMER TREASURY SECRETARY, LEADING ECONOMIST, FORMER ECONOMIC ADVISER TO PRESIDENTS OBAMA AND CLINTON (via Skype): I hope they're right and it's certainly possible that they could be right.
But I look at the pervasive patterns of shortage, which is emerging in more and more areas, starting critically with the labor market which is the biggest cost for most goods. I look at surveys of consumers. Ninety percent of Americans who are worried about inflation -- expected inflation ramped up to a number above four percent in the latest Michigan survey.
I look at the facts and the amount of money we're putting into households' hands relative to the capacity of the economy to produce. And I look at the serene complacency that we're in a new era and that we can increase demand almost without limit and we're still trying to get inflation up that we're hearing out of Washington.
And I think all of that together is much larger than the kind of extra fiscal policy we had in the 1960s that set off the inflation where inflation went from being in the ones to being in the sixes between 1966 and 1969. So I don't know if we'll get anywhere near the sixes this time but I do think we've got an acceleration.
BERMAN: What would you do about it right now, then? If you're right, what would you do if you're the Biden administration, and I suppose what would you do if you're the Fed?
SUMMERS: First, I'd recognize that our challenge right now is no longer insufficient spending. It's the economy overheating.
Second, I'd support the efforts that many states are making to get people back to work by converting unemployment insurance into reemployment bonuses. Third, I'd make sure that the tax increases are measured to go along with the spending increases as we pass the vitally important kinds of measures contained in the Jobs Act and the Families Act.
[07:40:03]
Fourth, with the housing market completely on fire, I'd have the Fed stop buying up mortgages to drive rates even further down.
But overall, this is heavily about expectations and psychology. And I think if we recognize that there is an issue and a problem and make clear a policy commitment to do what's necessary to keep us in a world of stable prices, those expectations can be self-fulfilling. But if we say there isn't any problem and we can let it all rip with policy, those expectations can be self-fulling, too.
BERMAN: I'm not sure they're saying let it all rip, right? They're saying it's within a manageable framework here and the Fed is saying if it goes beyond that then they can respond by raising interest rates.
And I just want to point out, Goldman Sachs, yesterday -- like, yesterday put out an analysis based on the new numbers that they have seen. And the PCE, the Personal Consumption Expenditures, which is how they measure inflation -- they see inflation really around two -- a little bit higher than two over the next year, but nowhere near this six.
And I know you're not saying we're going to be at six percent, but nowhere near runaway inflation or Vietnam scenarios. A little bit over two percent but nothing extraordinary here.
What's your number? I mean, lay it out there. What number do you think we'll be at in inflation?
SUMMERS: You know, I'd say first of all, if you look at the history of the Vietnam thing at every step it seemed gradual. And I've never used the word runaway and I don't think it's going to be runaway inflation. But I think that we lost control gradually through a sequence of steps taken by people who appeared reasonable who were always emphasizing the special factors the last time we made this mistake. Second, it could be that this kind of optimism will prove to be warranted.
I think there are a lot of issues with these price indices. If you look at the inflation measures, right now the indices -- like that personal consumption expenditure deflator you referred to -- they're saying that housing is a major factor holding down inflation.
Well, if I talk to Americans and look at the data on people trying to buy houses or people trying to enjoy the houses they bought last year, those houses are on fire, going up more rapidly than they have in many, many years. That doesn't feel noninflationary to me and I think eventually that's got to show up in improper price index.
I look at the magnitude of the shortages of labor. Look, it was right 10 years -- 10 months ago to be supporting people who couldn't work because of COVID. It was an important right thing to be doing. But right now, we've got labor shortages in so many places and it's not like we still have an economy that's deeply depressed.
GDP has already passed its peak previous level. Most people think we're going to be above the economy's potential by the end of the year. That's just not a time to be stepping on the accelerator as hard as we can --
BERMAN: Larry Summers --
SUMMERS: -- and that's what I'm concerned about where we are. If it was just fiscal policy or just monetary policy and one was offsetting the other, that would be different. But we've got both of them together going hard and I just don't think the cost-benefit on that is the right one. But there are no certainties. It could turn out that the optimists will be right.
BERMAN: Larry Summers, we appreciate your time. Thanks so much for joining us this morning.
SUMMERS: Thank you.
BERMAN: Prosecutors finding a case of voter fraud in the 2020 election. This time, a suspected murderer who cast his dead wife's ballot for Trump.
KEILAR: And was President Trump as tough on cybercrime as some of his media cheerleaders want their viewers to think? We will roll the tape.
(COMMERCIAL BREAK)
[07:48:39]
KEILAR: A strange twist in a Colorado murder case. A man accused of murdering his wife a year ago is now charged with using her mail-in ballot to illegally vote for Donald Trump.
Laura Jarrett is here with the details. Laura, what happened?
LAURA JARRETT, CNN ANCHOR, "EARLY START": I just thought give him another vote. That's what authorities say Barry Morphew told FBI agents when asked why he submitted his wife's ballot after she vanished.
His wife, Suzanne, went missing last May. Flyers were put up all over town and Barry Morphew even recorded a video pleading for her safe return.
(BEGIN VIDEO CLIP)
BARRY MORPHEW, ACCUSED OF MURDERING WIFE AND SUBMITTING HER BALLOT FOR DONALD TRUMP: I'll do whatever it takes to bring you back. We love you and we miss you. Your girls need you.
(END VIDEO CLIP) JARRETT: Then something bizarre happens. Last fall, the county clerk received a mail ballot from Suzanne Morphew even though the woman hadn't been seen in months. The ballot for Trump didn't have Suzanne's signature as required but it did have her husband Barry listed as a witness, raising a red flag.
Now, according to court documents, when the FBI asked Barry about the ballot he said, quote, "I figured all these other guys are cheating." He also told agents, quote, "I didn't know that you couldn't do that for your spouse."
He's accused of murdering his still-missing wife and now also faces charges of forgery and a misdemeanor ballot offense. Morphew's public defender isn't commenting on the case. He is set to appear in court next week, Brianna.
KEILAR: Wow, we'll keep an eye on that.
[07:50:01]
Laura Jarrett, great to see you. Thank you.
If the recent cyberattack on the company that supplies much of the east coast gasoline taught us anything it's that these kinds of crimes can affect our daily lives -- even our ability to put gas in our cars.
This country is clearly unprepared to confront one of the biggest threats of the 21st century. Congress has passed the buck for years and America is vulnerable. But on planet Fox, they're acting like this problem was solved under the last administration.
(BEGIN VIDEO CLIP)
JEANINE PIRRO, FOX NEWS HOST, "JUSTICE WITH JUDGE JEANINE": President Donald Trump was on DEFCON 1 when it came to cybersecurity, well aware of the damage that could be inflicted. He signed a law creating the Cybersecurity and Infrastructure Security Agency to identify, anticipate, and manage national cybersecurity and infrastructure risks.
In 2020, he warned pipeline owners of potential cyber ransomware attacks and what to do to avoid them.
In contrast, Joe Biden is asleep at the wheel and appears incapable of comprehending, let alone handling the danger cyberterrorists present to the United States.
(END VIDEO CLIP)
KEILAR: That was some kind of fiction. Very few elected U.S. officials get a medal for cybersecurity achievements but former President Trump doesn't even get a participation award.
SolarWinds, the unprecedented breach of at least nine U.S. agencies and dozens of private businesses, including government contractors, happened on Trump's watch. It took months for his administration to realize it was happening, then he stalled in acknowledging the attack -- a suspected Russian spying campaign.
When he did, he floated the idea that China was behind it, saying everything was quote "well under control" when his administration blamed Russia.
(BEGIN VIDEO CLIP)
MIKE POMPEO, THEN-DIRECTOR, CENTRAL INTELLIGENCE AGENCY: This was a very significant effort, and I think it's the case that now we can say pretty clearly that it was the Russians that engage in this activity."
(END VIDEO CLIP)
KEILAR: Now, Trump's claim was, of course, a rerun. In 2016, he floated that China may have been behind the DNC hack, not Russia.
(BEGIN VIDEO CLIP)
DONALD TRUMP, THEN-PRESIDENTIAL CANDIDATE: I mean, it could be Russia but it could also be China. It could also be lots of other people.
(END VIDEO CLIP)
KEILAR: And weird that Trump's boosters aren't highlighting this -- Trump's proposal for a partnership with Vladimir Putin to form a, quote, "impenetrable cybersecurity unit that would guard against election hacking," which is like partnering with a burglar who has robbed your house to guard against burglaries of your house.
Trump also floated a ridiculous conspiracy theory that the DNC hacked itself to create a distraction. Separately, he surmised that the hacker was some couch potato.
(BEGIN VIDEO CLIP)
TRUMP: It also could be somebody sitting on their bed that weighs 400 pounds, OK?
(END VIDEO CLIP)
KEILAR: He also speculated that the cybersecurity firm that investigated the DNC hack was suspect as he hit Ukraine's president up for an investigation of his then-opponent Joe Biden in the infamous phone call that led to his first impeachment.
Later, Trump fired the U.S. official in charge of securing America's elections, the head of the Cybersecurity and Infrastructure Security Agency after Chris Krebs rejected Trump's voter fraud claim. So he fired him for telling the truth.
In 2018, Trump's administration eliminated the position of cybersecurity coordinator on the National Security Council, the position that literally deals with solutions to cyber warfare and digital attacks.
We later learned that his daughter and senior adviser Ivanka Trump used personal, unsecure e-mail for government business after Trump had built part of his campaign around Hillary Clinton using personal e- mail while Secretary of State.
Trump, himself, refused to use secure phones to make calls despite repeated warnings about his vulnerability. He was still doing that years into his presidency, by the way. And he also made calls around guests at Mar-a-Lago and had classified conversations about North Korea out in the open as he dined on the patios -- on the patio of the resort.
Perhaps, though, the most interesting of Trump's cyber moves was putting Rudy Giuliani in charge.
(BEGIN VIDEO CLIP)
RUDY GIULIANI, THEN-ATTORNEY FOR DONALD TRUMP: I'd love to be the person that comes up with the solution to cybersecurity.
(END VIDEO CLIP)
KEILAR: The guy Trump hand-selected to lead the nation's effort against cyber warfare is the same guy who is notorious for butt dialing, including accidentally calling reporters and who reportedly locked himself out of his iPhone and whose electronics were recently seized by the FBI during a raid for a criminal investigation.
It's not just Fox, though, trying to stroke the ego of Florida's most prominent retiree as he divides his time between golf and propagating the big lie.
(BEGIN VIDEO CLIP)
REP. KEVIN MCCARTHY (R-CA): But at no time, having known Joe Biden for quite some time, does he have the energy of Donald Trump. We both know it. Donald Trump didn't need to sleep five hours a night and he would be engaged. If you called Donald Trump, you'd -- he'd get on the phone before staff would.
(END VIDEO CLIP)
[07:55:03]
KEILAR: Whatever it was keeping Trump awake, cybersecurity was not it.
Ahead, a Space Force commander loses his job after claiming Marxism is taking over the military and calling diversity training divisive. His comments didn't stop there. We'll have a live report, next.
BERMAN: Plus, Houston's elusive big cat has been safe and sound. The tiger and Carole Baskin will join us live.
(COMMERCIAL BREAK)
KEILAR: A Space Force commander fired for comments that he made on a conservative podcast criticizing the U.S. military. Lieutenant Col. Matthew Lohmeier was promoting his self-published book in which he asks questions like is systemic racism a reality or is much of our talk about race merely a rhetorical tool used to divide Americans?
CNN's Kristin Holmes is live in Washington with more. It's pretty eye- popping what he said, Kristen.
KRISTIN HOLMES, CNN NATIONAL CORRESPONDENT: Yes, that's right, Brianna. And the key here is that he's active-duty while he's saying this.
Now, on this conservative podcast he talks about how not only is Marxism prevalent in the U.S. military -- this is his claim -- but he also indicates that it's being promoted. Take a listen here.
(BEGIN VIDEO CLIP)
LT. COL. MATTHEW LOHMEIER, FIRED FROM SPACE FORCE: Since taking command as a commander about 10 months ago, I saw what I consider fundamentally incompatible and competing narratives of what America was, is and should be. That wasn't just prolific in social media or spreading throughout the country during this past year, but it was spreading through the United States military. And I had recognized those narratives as being Marxist in nature.
(END VIDEO CLIP)
HOLMES: So when asked to expand on this, Lohmeier decried "The New York Times" 1619 project which, of course, is a historical look at how slavery shaped America's institutions. Here's what he said about that, calling it un-American and this.
(BEGIN VIDEO CLIP)
LOHMEIER: A teaching that I heard at my base that -- at the time the country ratified the United States Constitution, it codified white supremacy as the law of the land. If you want to disagree with that then you start being labeled on a manner of things, including racist.
(END VIDEO CLIP)
HOLMES: Now, a defense official tells us that he was relieved of his duties, quote, "due to loss of trust and confidence in his ability to lead." They also say that there is going to be an investigation underway as to how exactly that bush -- that book, excuse me, was published.
Now the other thing to know is that there has been a little bit of pushback here from supporters of Lohmeier, as well as conservative lawmakers who say that this is just retaliation for pushing back against a liberal narrative -- Brianna.
KEILAR: Kristen Holmes, fantastic report. Thank you so much.
You know, Berman, it goes to -- we talk about politicization of the military but it's not just an academic idea, right? You kind of see it in practice here. BERMAN: Yes, and look, there's so much talk about people in the military -- what they say after they're retired.
