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New Day Saturday
Biden Won't Assert Executive Privilege Over Trump Documents; U.S. Now Averaging Fewer Than 100k New COVID-19 Cases A Day; Report: Trump's DC Hotel Had $70 Million In Losses Over 4 Years; Fmr. Navy Seal To Skydive Onto Mt. Everest To Raise Money For Gold Star Families; Dozens Of Full Cargo Ships Idle At U.S. Ports As Prices Spike. Aired 8-9a ET
Aired October 09, 2021 - 08:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[08:00:00]
UNIDENTIFIED FEMALE: It's called the Dark Mission, which stands for NASA's double asteroid redirection test. NASA will test its asteroid deflection technology in September next year to see how it impacts the motion of a near Earth asteroid in space.
The hope is that it can redirect asteroids and comets near the planet that could potentially cause major damage.
BORIS SANCHEZ, CNN ANCHOR: Good morning and welcome to your "New Day." I'm Boris Sanchez.
LAURA JARRETT, CNN ANCHOR: And I'm Laura Jarrett in for Christi this Saturday. Boris, great to see you.
SANCHEZ: Great to see you as always, Laura.
Congressional showdown we have to talk about. Steve Bannon saying he's going to defy a subpoena from the January 6 committee in Congress, just how far lawmakers going to go to get the truth.
JARRETT: Plus, some promising signs in the fight against COVID. COVID cases are dropping, hospitalizations are down. But experts warn this battle is not over yet.
SANCHEZ: Plus, a former Navy SEAL going to sky high heights to help Gold Star families and he's taking on Mount Everest to help the children of fallen service members. You'll hear from him live.
We appreciate your sharing part of your weekend with us. It is Saturday, October 9th. Laura the alarm going off a little bit later for you this morning. Appreciate having you.
JARRETT: It was a treat. It's such a treat, an hour later I can get used to this. This is great.
A lot to get to, but up first here executive privilege and the search for answers about the January 6 insurrection. Donald Trump is trying, trying to claim executive privilege to block the special House committee investigating the riots from getting documents. SANCHEZ: And yes, we should know he's no longer the executive. Former Trump advisor Steve Bannon now trying to defy a subpoena from the committee also citing privilege. But the White House says the privilege belongs to the current president and so far, President Biden has refused to assert it over these Trump documents.
Let's bring in CNN crime and justice reporter Katelyn Polantz. Katelyn, good morning.
We want to first start with what kind of documents exactly the committee is trying to get here. And what the response has been to Steve Bannon is defiance.
KATELYN POLANTZ, CNN CRIME & JUSTICE REPORTER: Well, Boris and Laura, there are a lot of things that have been requested so far by the House Committee investigating January 6. And right now, we're going to see the first things, the first response is potentially on whether they're going to be collecting information or whether they're going to have to fight for it. We have seen some signs that a fight could be emerging. Largely right now, it is because of the National Archives holds lots of records from the Trump presidency, they are the inheritor of the White House Presidential Records. And the Biden administration has said they are not going to be asserting privilege over those documents, the first collection of documents that are going to go to the House from the archives.
Now, what the House is looking for is anything that shows plans to attempt to overturn the 2020 election. That's videos and photos, call logs schedules of people in the White House, potential intelligence that there was before the Trump rally, and even communications of White House officials.
And so, all of those sorts of communications, those are the sorts of things that the Trump people who do have a say because Trump is the former president, he gets a little bit of a say, he's saying that he wants to assert privilege over approximately 40 of those documents. And that means that there could be a court fight, if they can't come to an agreement on what the National Archives should be giving to the House, there are lots of parties involved, they're talking, and Trump could really try to slow things down with a court fight in the next 30 days or 60 days.
JARRETT: So, Katelyn, that's one set of documents that the National Archives has. We also have the January 6 committee, of course, wanting the testimony and documents from all these other guys. And they say, they say criminal contempt charges are on the table. If somebody defies a subpoena, like Bannon basically has so far, we'll see whether he changes his tune on that.
I wonder what their next recourse is? You know, we always talk about this mythical jail that Congress has, the sergeant at arms going in arresting someone that seems unlikely. So, what's really going to happen here?
POLANTZ: Well, the mythical jail that really is something that's off the table. We went through that with Don McGahn during the Trump presidency, it wasn't something that the House was going to try. However, if there are people like Steve Bannon who defy a subpoena, Steve Bannon has already told the committee he's going to be unable to respond to a subpoena for documents and testimony after the President Trump sent some warning shots that he wants to maintain the executive privilege. And Bannon is essentially the committee -- daring the committee at this point to do one of two things. Or two, I guess he could that has happened in the past.
The committee could either hold him in civil contempt, which means send it to the courts have a court fight over what Bannon will have to do if he has to show up if he has to answer questions or potentially hold him in criminal contempt, which would be making a referral to the Justice Department to prosecute him.
[08:05:15]
Now other than Bannon, we do know that there are two subpoenas that have gone out of top Trump officials, Mark Meadows, the former White House Chief of Staff and the Defense Department official Kash Patel, the committee said last night that they are so far engaging with them. So, it remains to be seen exactly how much cooperation the House is going to be getting across the board.
JARRETT: Well, and the problem here, of course, is whether they take them to court themselves or they try to refer to the Justice Department. Either one of those is going to get take time and drag this thing out, which is something House investigators really don't want to do.
Katelyn Polantz, thank you so much for getting up for us. Appreciate it.
SANCHEZ: Thanks, Katelyn.
Pivoting to the other big story we're following today and some good news. Promising signs in the fight against COVID-19. The seven-day average of new coronavirus cases here in the United States, dipping below 100,000 for the first time in two months.
JARRETT: And that is good news. But health officials are still urging caution, as only 65% of eligible Americans are fully vaccinated even at this late date.
CNN's Polo Sandoval has more on this. Polo, good morning to you.
POLO SANDOVAL, CNN CORRESPONDENT: Good morning.
JARRETT: Community spread still high in many places.
SANDOVAL: It certainly is here. There's certainly no doubt that throughout much of the country, the situation is getting better. But not all. You have states like Utah states like Alaska that are still experiencing widespread transmission. There's also those vaccination numbers that still remain stubbornly low. And also, in some of those states like Utah and Alaska, hospitals still at or near capacity.
(BEGIN VIDEOTAPE)
SANDOVAL (voice-over): The nation's COVID-19 hospitalization rate is at its lowest point in nearly two months. Add to that the average number of new COVID cases each day which fell below 100,000 this week, for the first time since August. It's clear to many health experts that most of the nation is on the right path with over 65% of eligible Americans to receive COVID-19 shots being fully vaccinated.
ROCHELLE WALENSKY, CDC DIRECTOR: There are some communities that are really well vaccinated and went really well-protected. And then there are pockets of places that have very little protection. And the virus isn't stupid. It's going to go there.
SANDOVAL (voice-over): That's what concerns both the current White House and the last. Admiral Brett Giroir served as COVID testing czar under the Trump administration. He agrees that the nation is in a promising point but the war against COVID is far from over.
ADMIRAL BRETT GIROIR, FMR HHS ASST. SECY: This was associated with an increase in vaccination rate, more testing and about doubling of the mask wearing, so the American people did the right things. But we are not out of the woods yet. As a surgeon general says there are still a lot of Americans who do not have natural immunity and who have not been vaccinated. They are still susceptible.
SANDOVAL (voice-over): But most of the lower 48 seems to be turning a corner. Alaska remains on high COVID alert. This week, state health officials reported a COVID case count five times greater than the national average. According to the Health Department, 20 of the state's medical facilities implemented crisis standards of care as a last resort when medical personnel have to ration care.
Pfizer's race to secure emergency use authorization for its vaccine continues for children five to 11 as well its trials according to the company. Vaccine advisors at the CDC will meet in the next couple of weeks to discuss Moderna and J&J boosters at early November to discuss pediatric COVID vaccination that reduces the likelihood that U.S. children 11 and under will begin receiving shots before Halloween.
(END VIDEOTAPE)
SANDOVAL: And this morning, new research suggesting that orphanhood remains a secondary -- or at least emerging as a secondary tragedy that's part of the pandemic. In fact, some research that was published by the National Center for Health Statistics revealed that over 120,000 children up to June, lost a primary caregiver to COVID-19. Sixty five percent of those abortions are actually the kids of ethnic minorities.
SANCHEZ: Yes. And Polo, we do want to ask about some news that we're getting about a stabbing in New York City Apple store over a mask mandate. What happened?
SANDOVAL: Yes, that actually happened yesterday evening Boris, Laura. It was a 37-year-old security guard at an Apple store that was apparently stabbed as part of this speech authority, saying that he did not sustain any life threatening injuries. But nonetheless so the certainly reminding us that mask wearing remains a point of contention, one that is led to violence and what happened here in New York, really just the latest example.
SANCHEZ: Sad to hear --
SANDOVAL: Yes.
SANCHEZ: -- Polo Sandoval, reporting from New York. Thank you so much.
SANDOVAL: Thanks, guys.
SANCHEZ: Joining us now to discuss all things COVID is Dr. Aileen Marty. She's a professor of infectious diseases at Florida International University.
Good morning, Doctor, always appreciate having your expertise on with us.
Let's talk about this cautious optimism about the trajectory of the pandemic. Are you sharing some of the optimism from those like the surgeon general who don't see things escalating when it comes to COVID in the near future?
[08:10:10]
AILEEN MARTY, PROFESSOR OF INFECTIOUS DISEASE, FLORIDA INTERNATIONAL UNIVERSITY: So we're having a nice reprieve right now from the horrible pandemic that is still raging in many parts of the world and some parts the United States, and that's a good thing. So as we continue our efforts to get more people vaccinated as that vaccination rate goes up, it's going to reduce the chance that we have another significant upswing.
So yes, I'm very optimistic,. And also the fact that the BIden administration has purchased so many additional rapid tests, which when you have a lower prevalence is a more valuable test.
SANCHEZ: And Dr. Marty, another reason that experts are expressing optimism is because it appears that this Pfizer vaccine for kids from five to 11, is headed toward FDA approval and potentially being rolled out within the next month or so. What would you say to parents out there that are eager for their kids to get vaccinated? What advice would you give them to prep ahead of time?
MARTY: Well first of all, I think it's a phenomenal thing. I've looked through the data that's available so far on the two dose, one-third dose of the adult version for five to 11. And the safety figures are phenomenal. The fact that these children are getting really excellent levels of neutralizing antibodies, and in fact the same or better as people older than that than they are, even though they have a third, the dose is extremely good.
Of course, you know, that you should always talk to your pediatrician and make sure that everything is fine with your child. But there's really, this is going to be a very wonderful thing. It's going to make schooling that much better and safer. And that's something we all want to be able to go back to a more normal situation.
SANCHEZ: No question. I did see some polling recently that indicated that there was a lot of hesitancy among parents to get their five to 11 year olds vaccinated. And I'm wondering what you would say, to any patients, parents that might have that kind of hesitancy, they're not sure about getting their kids vaccinated, even though they may be.
MARTY: So I think people were made aware that the numbers of cases in children rose dramatically over the summer. And included in those cases and children were a whole lot of children that needed to be hospitalized, some for prolonged periods in the ICU. And, unfortunately, children died. We've had hundreds and hundreds of children in the United States that have died, thousands in the world that have died from COVID-19.
And when you vaccinate children, five to 11, you increase not only their safety, but you increase the safety of those around the children as well, because as you've already spoken about there, all these orphaned children. So we don't need any more orphan children, and we need children to be as safe as possible. And I think this is a wonderful way in which we can do that for our population. The more people that percent of our population that's vaccinated, the less risk there is for all of us.
SANCHEZ: It's just as simple as that. Dr. Aileen Marty, as always, we appreciate the time. Thank you.
MARTY: My pleasure.
SANCHEZ: So lobbyists spent millions of dollars of a Trump Hotel in Washington D.C. while Donald Trump was in office. But how did that hotel wind up losing $74 million. We're going to break down the numbers for you, after a quick break. Stay with us.
(COMMERCIAL BREAK)
[08:17:49]
SANCHEZ: Former President Donald Trump says his lavish Washington D.C. hotel made tens of millions of dollars during his four years as president, but documents released by the House Oversight Committee are painting a different picture.
JARRETT: A very different picture indeed. Get this according to the documents. The hotel racked up more than $70 million in losses during that time period.
CNN's Brian Todd has this angle of the story.
(BEGIN VIDEOTAPE)
BRIAN TODD, CNN CORRESPONDENT (voice-over): New information that Donald Trump's celebrated Washington Hotel was not the successful venture the former president claimed it was. According to the House Oversight Committee, Trump's company reported in financial disclosures that the Trump International Hotel earned more than $156 million in income between its 2016 opening and last year, but the committee has just released documents saying that the hotel suffered a net loss of more than $70 million during that period.
(on-camera): How did they lose so much money?
ZACH EVERSON, FORBES MAGAZINE: The math never made sense. I think the problem was just they couldn't fill the rooms. There is no shortage of pro Trump fans saddling up to the bar and embassies and other groups originally going to the banquet rooms but the guest rooms just sounded like they weren't renting that much.
TODD (voice-over): Earlier this year during a weekend stay, a CNN employee who shot this video and took still pictures observed very few guests staying at the hotel. Hallways elegant but empty. Elevators running up and down only a handful of times indicating a lack of traffic to and from the rooms.
The House Oversight Committee documents say that during the four-year period in question, the Trump Organization had to funnel more than $24 million from other parts of the company to help the D.C. hotel.
But that's not all, the committee says, its analysis of the financial documents shows the Trump hotel received about $3.7 million from foreign governments, which the committee says raises concerns about whether Trump violated part of the constitution that bans federal office holders from receiving gifts, payments, anything of value from foreign officials.
NORM EISEN, CNN LEGAL ANALYST: It calls into question whether Trump's dealings with these foreign governments were motivated by the best interests of the United States or his own financial interests.
TODD (voice-over): The committee says the documents also show that Trump received quote undisclosed preferential treatment from Deutsche Bank on a $170 million construction loan for the hotel.
[08:20:09]
Just before Donald Trump was elected president, the Trump International Hotel opened, touted as a crown jewel in his real estate empire.
DONALD TRUMP (R), FMR PRESIDENT OF UNITED STATES: With the notable exception of 1600 Pennsylvania Avenue. This is the most coveted piece of real estate in Washington D.C., the best location.
TODD (voice-over): It boasted luxurious suites, a Himalayan salt chamber and a spa. Foreign officials, business elites, political power brokers likely trying to curry favor with Trump constantly shuttling through the lobby.
SHAWN MATIJEVICH, FMR EXECUTIVE CHEF, STEAK RESTAURANT IN TRUMP INTL. HOTEL: With so many every day it was, you know, it almost got overwhelming at times. How many VIPs and members of our government that are making headlines are all together in the same place?
TODD (voice-over): Now, sources tell CNN the Trump Organization has been looking to sell the lease on the hotel for more than a year.
(on-camera): Contacted by CNN, the Trump Organization issued a written statement saying that the House Oversight committee's report was intentionally misleading, irresponsible and unequivocally false. The statement says the committee showed a fundamental misunderstanding of basic accounting principles and says at no time did the Trump Organization receive preferential treatment from any lender.
It also said that any profits collected during Trump's presidency from this hotel were voluntarily donated back to the U.S. Treasury at the end of each fiscal year. Deutsche Bank responded to the report by telling CNN in a statement that the committee makes several inaccurate statements about Deutsche Bank and its loan agreements.
Brian Todd, CNN, Washington.
(END VIDEOTAPE)
SANCHEZ: Brian, thanks for that report.
Here's one way to lend a helping hand skydiving onto Mount Everest. A retired Navy SEAL taking a giant leap, honoring fallen service members and helping their families. Find out what motivated him to take this stunt to the next level. After a quick break.
(COMMERCIAL BREAK)
[08:26:42]
SANCHEZ: A U.S. delegation is set to travel to Doha in Qatar this weekend to meet with senior Taliban representatives from Kabul. And this is going to be the first such meeting of its kind since the withdraw of all U.S. troops from Afghanistan at the end of August.
JARRETT: That's right, a State Department official tells CNN the meeting will address issues of vital national interest to the United States, such as the continued safe passage out of the country for Afghans, Americans and other foreign nationals. The U.S. is also expected to push the Taliban to respect the rights of women and girls.
SANCHEZ: As the United States reflects on the aftermath of the 20-year war in Afghanistan, many are focusing on the future, specifically the loved ones and legacies of those who lost their lives in Operation Enduring Freedom.
Ten years ago, the crash of Extortion 17 during an operation in Afghanistan marked the deadly single incident of the war. Thirty-one Americans lost their lives, including Matt Mills, whose son Cash was only 18 months old at the time. Cash was one of 25 children left without their fathers, after Extortion 17.
So this month, one former Navy SEAL is planning a great leap to help kids like Cash. Michael Sarraille plans to raise funds for the Special Operations Warrior Foundation by attempting to skydive onto Mount Everest. Michael joins us now to discuss his jump, we should note he's also the author of The Talent War. And we're fortunate this morning to be joined by Gold Star spouse Keri Mills, she's Cash's mom. And that's actually where I want to start.
Keri and Michael, good morning to you both. We appreciate having you.
Keri, help us understand the importance of the support that you've received from the military community and people like Michael, and what the Special Operations Warrior Foundation has meant for Cash.
KERI MILLS, GOLD STAR SPOUSE: Cash was so young, so he doesn't actually have a memory of one his father or the event that occurred in August 2011. However, the support that came after that has been integral in his education and fundamental in his growth, especially Special Operations Warrior Foundation has been kind enough to help him learn a second language at such a young age as it hasn't been offered for him in an elementary school at this point in time.
So, they have been willing to pay for him to learn a second language. And then so without any hesitation.
SANCHEZ: And Keri, what did you think when you found out that Michael was planning this expedition to jump out of a plane onto one of the highest peaks -- the highest peak in the world?
MILLS: Well, Michael has been a longtime family friend and teammate of Matt and he has always been there no matter what. And so, something incredible about our community is that there's never an end to the support. And so, when Michael told me that he was going to do this incredible and dangerous event, I was honored to help him support him in any way, shape, or form especially to give back to this wonderful foundation.
[08:30:00]
SANCHEZ: Michael, we have to note that personal connection between you and Matt, and I'm wondering if he heard that you were attempting this, what do you think he might say?
MICHAEL SARRAILLE, NAVY SEAL, RET.: He probably say what most people say, say to each other when we've got something big, he would say don't suck it. Don't screw it up.
No, no, I smile when I think of Matt. And I smile when I think of all these guys now there's, there's a time for tears. But, you know, legacy expeditions is meant for just that, to uphold their legacy men that died for you and I, for something they believed in this country. But more importantly, the potential of what you and I can become, we need to remember that every day.
SANCHEZ: And what message do you think that this attempt, sends to kids like Cash kids that look up to you to see, to look for the legacies of their fathers and mothers, your brothers and sisters in arms? SARRAILLE: I think it sends a message that you're loved, that you're loved by all of us who are still here, more importantly, you're loved by your fathers, and that they made their sacrifice so that you can have a life of opportunity here in the United States.
SANCHEZ: And quickly, Michael, if you could, how can viewers at home help the foundation?
SARRAILLE: Yes, absolutely. All the money that we're trying to raise goes to the Special Operations Warrior Foundation. So, if you go to legacyexpeditions.net, there's a link. And again, please make a donation, all the money is going to funding the education of these children that lost their fathers in the war.
SANCHEZ: Michael and Keri, we appreciate you both, we appreciate your service and your continued message to the country to support all these heroes. Thank you so much.
Stay with CNN. We'll be right back.
KERI MILLS, GOLD STAR SPOUSE: Thank you.
SARRAILLE: Thank you.
(COMMERCIAL BREAK)
[08:36:27]
JARRETT: Your holiday gift orders may take a little longer to reach your doorstep this year. So why is this happening Boris? Well, the economy is it bounces back a labor shortage means that many suppliers are still struggling to keep up with all this pent up demand.
SANCHEZ: Yes, good luck explaining that to your kids when they're wondering where their gifts are in Christmas, right. Now dozens of cargo ships are stuck off the coast of California at the country's two biggest ports.
CNN's Kyung Lah was there riding along with the U.S. Coast Guard to give us a first hand look.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: Before we get a second crew passenger.
UNIDENTIFIED FEMALE: (INAUDIBLE).
KYUNG LAH, CNN SENIOR NATIONAL CORRESPONDENT (voice-over): To understand the problem on the ground.
UNIDENTIFIED MALE: Five, four, three, we're going to take off.
LAH (voice-over): You first need to see it from the air.
UNIDENTIFIED MALE: Looks like right over the anchorages just south of the Port of Los Angeles Long Beach. LAH (voice-over): This is where the global supply chain meets the U.S. economy says Coast Guard Commander Stephen Bor.
CMDR. STEPHEN BOR, U.S. COAST GUARD: It's record breaking, it's unprecedent. There are more ships than there are parking spots. We are effectively operating a cell phone waiting lot in the Pacific Ocean.
LAH (voice-over): This bottleneck of container ships as far as the eye can see carries more than half the made in Asia items purchased by the American consumer.
BOR: You're looking at all of the electronics, you're looking at all of the hope goods, you're looking at all of the things that people are looking forward to by this coming holiday season.
LAH (voice-over): Zero ships usually stay parked here. But on this day Commander Bor counts 55 in the ports and more drifting further out in the Pacific. While worst here the backup is at all West Coast U.S. ports.
(on-camera): What does that indicate to you about what's happening in the supply chain?
BOR: You know, I think everybody can see that things are slowing down.
LAH (voice-over): Slowing down and piling up at sea and at the ports of entry. This is what happens when a global economy snaps back after the COVID slump of 2020. American consumers are back buying with force but the supply chain is struggling to catch up.
MARIO CORDERO, EXECUTIVE DIRECTOR, PORT OF LONG BEACH: We need to have an Amazon state of mind in his industry. And by that I mean Amazon changed everything.
LAH (voice-over): While shoppers click 24 hours a day, factories in Asia are still stopping due to COVID than in the U.S. national labor shortages and limited work hours. Port of Long Beach is just now experimenting with round the clock operations.
CORDERO: With this is a wake up call for all of us in this industry to realize you can't operate with a model of yesterday.
LAH (voice-over): The goal cut the wait time for truck drivers. The next link of the supply chain moving containers out of the port.
UNIDENTIFIED MALE: Every day though five, six hours in the harbor.
UNIDENTIFIED MALE: You had to wait like six hours.
LAH (on-camera): Six hours?
UNIDENTIFIED MALE: (INAUDIBLE).
RUBEN PONCE, TRUCK DRIVER: I was in there for nine hours.
LAH (voice-over): Nine hours Ruben Ponce lost that he could have been moving merchandise.
PONCE: I mean if I'm making less money, yes, because I can't do as many rounds.
LAH (voice-over): National data shows there is a truck driver shortage. But Ponce says the problem is even more basic than that.
PONCE: For now the port is backed up, us we're backed up, the truckers were backed up. Everyone's backed up. And it's just a big problem.
LAH (on-camera): So it's like a chain reaction.
PONCE: Exactly, exactly.
LAH (voice-over): Delayed trucks means delays add warehouses like Canton Food Company in Los Angeles.
CHO KWAN, CEO, CANTON FOOD CO: I have about eight containers out in the harbor somewhere are from China and Vietnam.
LAH (on-camera): Filled with food.
KWAN: Still just waiting.
LAH (voice-over): That means for this warehouse empty shelves with no date to fill them basic economics or at play, scarcity drives up prices.
(on-camera): So it's almost doubled in price.
KWAN: I would say 70%.
UNIDENTIFIED MALE: Once the cheese is ready.
[08:40:03]
LAH (voice-over): Prices for ingredients restaurant owner Ricardo Mosqueda has to pay.
RICARDO MOSQUEDA, CO-OWNER, LA TAQUERIA BRAND: All those different products that you have to substitute you have to change, now 30% more, 50% more, 100% more.
LAH (voice-over): This La Taqueria Brand location operates in a renovated shipping container.
(FOREING LANGUAGE)
LAH (voice-over): The supplies Mosqueda needs sit out at sea in the same metal bins. A cruel irony after barely keeping his restaurant open through the pandemic.
MOSQUEDA: We worry as far as -- because you don't know what's going to happen, right? You don't know what's next.
LAH (on-camera): How long are these ships going to be floating out here?
BOR: I really can't say how long they're going to be like this. I think we're all going to wait and see how long this shakes out.
(END VIDEOTAPE)
JARRETT: Kyung Lah, thank you so much for that report.
Our next guest understands the supply chain disruptions all too well. I'm joined now by Jay Foreman, the CEO of the toy company, Basic Fun, maker of the iconic Tonka trucks, something that all toddlers worldwide love, including mine.
Jay, good morning to you. You have been in this toy business for nearly four decades. But you have said that you have never seen supply chain disruptions quite like this. Just explain how bad is it?
JAY FOREMAN, CEO, BASIC FUN TOY COMPANY: It's as bad as you can imagine. You know, there's about 10 or 15 steps in the chain to get a toy produced and get it to the store shelf. And then any particular year, maybe there's one or two disruptions could be high oil prices, could be a backup at the port. But this year, every single one of the factors that it takes to bring in a product and import a product is upside down right now. We've never seen this before. And it's delaying the delivery of products, which usually take about five weeks to get from a factory overseas to your store shelf to 10 or more.
But the way to think about it is if you've ever been to that one of the big city airports and you see the taxis and there's thousands of them, or hundreds of them waiting to file into two lanes, to pick up the passengers that sort of what it's like out in the harbor in Los Angeles, the rail heads in Chicago, and the warehouses all over the country. Everything is backing up right now.
JARRETT: Well, and this bottleneck means that you're having to make some pretty strategic decisions about what toys to ship, and sadly which ones to leave behind. You know, we're still weeks away from the holidays. But what's your advice to parents who are worried about ordering gifts in time for the season?
FOREMAN: The advice is simple, there's going to be lots of product that you can buy in the market for the rest of the Christmas season. But the things you want the most the top five or 10 things on your Christmas list are going to going to be very hard to find because everybody is looking for those same hot toys or hot electronic items.
So the advice is shop early for the top of your list. Don't expect as many bargains as you usually see because the cost of freight has gone up five times. And that has to be absorbed somewhere and retailers are very reluctant to raise prices going into Christmas. So what they may do is they may offer less discounting. But really the bargain this year is can I get it more than can I get it for 20% less. Shop early, that's what I'd say.
JARRETT: Shop early and fewer of those coupon codes that we all love with so many of our online orders. So, you know, I want to talk about some of the solutions here your company makes about 80% of your products in China. I know. And shipping products from overseas is obviously the thing that's causing so much at this disruption. So what do you say to someone who thinks you know what, just move production to the United States?
FOREMAN: Yes, I listen, it's a really natural and a good question. The problem is, there's not enough labor. We have unemployment at 4.8%. Trucking companies can't find truck drivers, fast food chains can't find people to work. So if you build factories here, for example, to make something like this care bear but you don't have anybody to manufacture them. That's a problem. So, you really can't have it all. You can't close the border to the low skilled labor, and then expect factories to open up. You can't -- not provide, you know, childcare and allow moms to go to work and expect there's plenty of labor around to manufacture light industrial products, whether it's clothes or toys.
So, there's so many problems that are going on at the same time that contribute to preventing building more factories in the United States. So -- and the biggest one is we have an infrastructure bill in Washington on the table that needs to get signed there $17 billion in there for ports. You saw how clogged the ports are. There's 32 billion in it for transportation upgrades and infrastructure that we really need. That's going to be really important to business all over America and the American worker as well.
[08:45:04]
JARRETT: Well and this just shows you how the dysfunction in Washington has that sort of trickle down effect to folks like you, small business owners, large business owners even, you know, we're really struggling right now.
FOREMAN: It sure does. It sure does.
JARRETT: Well Jay, Jay Foreman, thank you so much. Appreciate it.
FOREMAN: You're welcome.
SANCHEZ: Coming up, a power struggle in Idaho. Why this state's lieutenant governor keeps trying to pull a power play every time the governor leaves the state. We'll be right back.
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JARRETT: A power grabs snarky tweets and no it's not Washington. It's a bizarre feud between two top leaders in Idaho and it took another strange twist this week when Governor Brad Little went to Texas to visit the border.
[08:50:01]
SANCHEZ: Yes, his lieutenant governor went rogue and issued an executive order involving COVID-19 vaccines, even looking to get information about sending National Guard troops to the U.S.-Mexico border. CNN's Dan Simon has the latest from Boise.
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DAN SIMON, CNN CORRESPONDENT (voice-over): The latest stop between Idaho's Republican Governor Brad Little and its Republican Lieutenant Governor Janice McGeachin happened this week when Little went to Texas.
GOV. GREG ABBOTT (R-TX): And it's time for the Biden administration to wake up.
SIMON (voice-over): To stand with Governor Greg Abbott and others to blast the Biden administration's handling of the southern border.
GOV. BRAD LITTLE (R-ID): My fellow Idahoans --
SIMON (voice-over): While Little is considered a strong conservative but more mainstream, McGeachin elected separately is aligned with the far right wing of the party. Seen last year holding a gun and a Bible in a video that criticized coronavirus restrictions.
LT. GOV. JANICE MCGEACHIN (R-ID): We recognize that all of us are my nature free and equal.
SIMON (voice-over): She's running for the top job next year presumably against Little. And in a bold move, citing a clause in the state constitution used his absence to seize temporary control of the state and issue a controversial executive order banning schools from mandating COVID-19 vaccines.
She made a similar move months earlier, banning masks and public buildings while Little attended a Republican Conference in Tennessee.
McGeachin also inquired about mobilizing the Idaho National Guard and sending troops to the Mexican border. All these actions later rescinded by Governor Little.
MCGEACHIN: Our Constitution states that when the governor leaves the state, all duties that that apply to the office of the governor then fall to the lieutenant governor.
SIMON (voice-over): Little has never mandated masks but has allowed counties and schools to make their own decisions. On vaccines, he's banned state officials from requiring proof of COVID vaccinations, but he didn't specifically call out schools. McGeachin tweeting that her executive order fix that. We caught up with McGeachin outside her office.
(on-camera): But you know what you're doing, you're running for governor and when he leaves town you're issuing these orders. You're undermining what he's doing when you're doing this.
MCGEACHIN: You know, you -- you're I'm not going to talk anymore to an activist. I'm -- if you're asking me fair questions as a reporter, then that's fine. But if you're going to be an activist, I'm -- SIMON (on-camera): I'm not being an activist. But what do you say to
your critics who say that this is absurd.
MCGEACHIN: But again, you're being an activist.
I am not anti-vax. I am not anti-casting of COVID. We know a lot of people that are suffering from this right now. But I am very much against having it be a mandate in our state. And that's what this is all about. People should not be forced to decide --
SIMON (on-camera): But he never mandated anything. The governor never mandated anything.
MCGEACHIN: Interview is over.
SIMON (voice-over): For his part, Governor Little has been very quiet on the matter with one of his aides saying he's trying to rise above the political noise.
UNIDENTIFIED FEMALE: Governor, your reaction to the actions by your lieutenant governor?
UNIDENTIFIED MALE: We have to -- we got to go.
(CROSSTALK)
LITTLE: We'll take care of it.
UNIDENTIFIED FEMALE: Do you think it's political?
LITTLE: It could be political.
JIM JONES, FMR CHIEF JUSTICE OF ID SUPREME COURT: We've had Republican governors and Democrat lieutenant governors. They work it out.
SIMON (voice-over): Jim Jones is the former Chief Justice of the Idaho Supreme Court. His assessment, blunt.
JONES: This is the only lieutenant governor that I can recall that has acted like an idiot.
SIMON (on-camera): Governor Little has made the argument that it's a mischaracterization of the Idaho constitution to say that anytime he leaves the state that the lieutenant governor would automatically take over, and he got a supporting opinion from the Idaho Attorney General's office. Nonetheless, the AG's office said it was a close legal question. Ultimately, it would need to be resolved at the courts.
Dan Simon, CNN, Boise, Idaho.
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SANCHEZ: Thanks Dan for that report.
(voice-over): A quick update from Europe. Volcanic lava is devouring more homes in the Spanish Island town of La Palma. Look at these incredible images the lava pouring down hillsides. Officials say the Canary Islands Cumbre Vieja Volcano has become more aggressive in recent weeks. Officials discovering a new crater just one week ago, and there have even been lightning strikes hitting the volcano. More than 1000 homes destroyed since it first erupted.
So don't go anywhere. We're going to back -- be back in just about one hour from now. "SMERCONISH" is up next.
JARRETT: Stick with us. But first, here's a quick preview of CNN's New Original Series "DIANA," that premieres tomorrow night. Don't want to miss it.
(BEGIN VIDEOTAPE)
DIANA, PRINCESS OF WALES: I was always different. I had always this thing inside me that I was going somewhere different.
UNIDENTIFIED FEMALE: She was going to marry her dashing Prince. Like all the stories she'd read.
UNIDENTIFIED MALE: She was iconic. She was box office.
UNIDENTIFIED MALE: Going to dance with the Princess tonight?
JOHN TRAVOLTA, ACTOR: She'd like me to.
UNIDENTIFIED MALE: Pre Diana, there was Zilch interest in the royal family.
UNIDENTIFIED FEMALE: I don't think anybody has grown up in public like Diana has it.
[08:55:08]
UNIDENTIFIED FEMALE: Diana provided a very public model for defiance and truthfulness.
DIANA: Isn't it normal to feel angry and want to change a situation?
I was able to recognize an inner determination to survive.
UNIDENTIFIED MALE: The new CNN Original Series "DIANA," premieres tomorrow at 9:00 on CNN.
(END VIDEOTAPE)
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[09:00:02]
MICHAEL SMERCONISH, CNN ANCHOR: Some parents need attention. I'm Michael Smerconish in Philadelphia.
