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MSNBCW Jose July 2, 2024



meanwhile, unicef saying gaza has, quote, become a graveyard for thousands of children. we're going to talk to the head of a children's aid group there about what his team is seeing on the ground. over to capitol hill, a showdown is now set over aid for israel. what is expected to happen to the house republicans' $14 billion deal once it hits the senate. and the fall, my gosh, of the crypto king. what is next for sam bankman-fried now that's found guilty of stealing billions from investors? and former president trump's son eric back on the stand today in the civil fraud trial against members of the trump family and their business in new york city. hi, everybody. good to see you. we begin this hour with the very latest on the israel-hamas war. and the threat of this widening conflict. just this morning, the leader of hezbolla spoke for the first time since this war began. he addressed the lives lost in gaza, but added the october 7th attack on israel was 100% palestinian. just this morning, the president was asked for his message to americans trying to get out of gaza. here is what he said. >> all this as the u.s. is pushing for a pause in the fighting to buy time to get the hostages out and humanitarian aid in. u.s. secretary of state tony blinken meeting with israeli officials in tel aviv just a couple of hours ago. here is what he said about what the u.s. sees as the best path forward out of this conflict. >> states continue to believe that the best viable path, indeed the only path is through a two-state solution. that's the only guarantor of a secure jewish and democratic israel. the only guarantor of palestinians realizing their legitimate right to live in a state of their own, enjoying equal measures of security, freedom, opportunity, and dignity. the only way to end a cycle of violence once and for all. >> i want to bring in nbc news foreign correspondent josh lederman and ali arouzi as well. josh, i know you're in tel aviv now. talk us through first and foremost what we heard from the secretary of state. he had to ride this line, he had this bear hug approach they continued to have diplomatically with israel along with saying that many palestinian civilians are continuing to die, and be killed in gaza. and it is this war. >> that's right, yasmin. the secretary of state did not go as far as to openly criticize israel for its conduct in the war. but he was very clear to emphasize that the u.s. wants to see israel conduct itself appropriately and do everything possible to prevent civilian deaths. he really arrived here in israel, hoping he would be able to convince israel as the u.s. has been saying publicly they want to see to allow these pauses in the fighting to try to address the humanitarian crisis there. he didn't get that from the israelis. we heard from prime minister netanyahu after his meeting with blinken saying that there will be no temporary cease-fire until the hostages are released. that is the opposite order to what the u.s. has been calling for. they want to see these temporary cessation of hostilities to get the hostages out. and saying there will be no fuel entering the gaza strip, another key element of humanitarian crisis that secretary blinken has been trying to address here. we have heard from secretary blinken talking about a key goal of this trip is to try to prevent this crisis from spiraling to bring in more of israel's enemies on the heels of the speech of the hezbollah leader. that's a key element for blinken as he heads later on to jordan for the second stop on this trip. >> just to be clear, josh, to the prime minister does not necessarily seem to be hearing and/or heeding the calls or asks from the united states right now when it comes to humanitarian aid. >> reporter: -- >> i lost sound with josh. ali to you, we're talking about hassan nasrallah, we heard from the leader of hezbollah over the last hour. this is the last time we heard from him since this began on october 7th. he made a distinction comments, talking about how this was purely from the palestinians this was all planning coming from hamas. he also went on to say that from his standpoint it was, in fact, and continues to be justified. he did then point the finger at th united states more so, even than israel. >> reporter: that's right. it was a pretty typical hassan nasrallah speech. it was long, lasted almost 90 minutes. much of it sounded like a lecture. and it was laced with a lot of threats. look, he started saying as you mentioned, they didn't know about the october 7th attacks. he distanced himself from any knowledge of those attacks. and he also distanced iran from any knowledge of those attacks, saying that both of them were caught by surprise. you can take that with a pinch of salt. he then went on to praise all of the militias in the region in iraq and yemen and syria for taking up the fight, especially against the u.s. and he said that these militias were targeted by the u.s. just to protect israel. and he kept going on in that same sort of vain, and it was not until the end of the speech that it started to become slightly more threatening. but i have to tell you, yasmin, people were expecting for him to deliver some sort of ultimatum, some sort of declaration of war, and that didn't happen. it was fairly measured by hassan nasrallah speech. he did say that hezbollah militias engaged in an unprecedented cross border fight with israel, and that that could escalate. he said israel would make a massive mistake if they attacked lebanon, some sort of preemptive strike, it could be the end of israel if they did that. but this is nothing new that we have heard from hassan nasrallah. and he said that whoever wants to stop a regional war must quickly stop aggression in gaza. we were expecting him to give a timeline. you know, if they didn't stop bombing gaza in the next 24 hours, then hezbollah would enter israeli soil. none of those threats were made. he did make a lot of threats to the americans. he said those americans that were defeated in lebanon in the early 1980s, the people that defeated them are still there, still alive, and still fighting. and i think that was a reference to the 1982 barracks bombings that killed some 240 u.s. military personnel. so these are all warnings to israel and to the united states. but he did stop short of laying out any concrete steps of what hezbollah would do next if this carried on, which is what a lot of people in this region were expecting. a lot of people in lebanon were expecting. i've spoken to contacts in lebanon. they said a lot of people left beirut before the speech because they were really worried that this would be some sort of big declaration that they are going all out into war with them. but that didn't happen. and i think that really does chime a lot with iran's policy. they have created these proxies to create a buffer between them and the united states. and israel. and for iran and hezbollah in turn to get fully involved in this war would break with a decades long strategy of pushing red lines with israel, with the united states, but not inviting an all-out retribution of themselves and that seems to still be happening. look, they're issuing a lot of threats, but not saying they're going to get involved in this war. now, again, that does not -- that does not say they're going to get involved as this progresses, as the situation in gaza becomes even more detrimental to the people there, they may do, but for now, they're holding back. >> we know obviously that iran is relying on their proxies right now to carry out what they don't want to necessarily do at this moment in crossing those red lines. ali arouzi, thank you. josh lederman, thank you. want to bring in aaron david miller, served as a negotiator and senior adviser for arab israeli negotiations at the state department, helped formulate u.s. policy on the middle east and arab israeli peace, now a senior fellow in the american state craft program. thank you for joining us on this. i appreciate it. couple of things i want to talk through, i want to talk about what we heard from secretary of state tony blinken on the ground there in a second visit to israel since this war began. really walking this fine line of saying we're going to continue this bear hug diplomatic approach, we support israel no matter what, but acknowledging seeing palestinian children die every day, he sees his own children in those children as well. do you think the united states is where it needs to be diplomatically right now in its stance within this war? >> i think given the very emotional support of this president, who considers himself part of the israeli story for decades, that we're more or less in a place where we are. joe biden is, i think, caught between that support for israel, but changing frame of what is occurring in gaza, both in terms of the catastrophic humanitarian situation and the exponential increase in palestinian deaths as a consequence of israeli air strikes in an effort to eviscerate hamas as a military force. i think the real question to me is whether or not in terms of secretary of state's talking points there is a dot dot dot or else. an frankly, given the atrocities of october 7, the domestic politics on the democratic side pushing the president to be tougher, on the republican side waiting to paint the administration as somehow neutral or hostile to israel, basically the administration is going to try to walk that line. i think that the israelis understand that the international legitimacy is eroding. what they're concerned about is waning support on the part of the biden administration. the question is whether or not any of this is going to result at a minimum in a humanitarian pause as john kirby said to get humanitarian aid in and to get hostages out. and there is going to be an issue here. i think netanyahu said to blinken this morning that a cease-fire is possible if the hostages are released. not just the foreign nationals. and hamas is making a distinction here obviously. so, still a lot of uncertainty, but the american frame i think is toughening a bit. >> i want to read for you kind of picking up on what you just talked about,omhing from david roth kauffman in theaily beast talking about this dot dot dot moment or else. heed our warnings, play by the rules of international war, international law, and/or there will be reciprocity. and he writes this, the u.s. has yet to publicly embre the idea of cease-fire, but biden must let the israeli leadership know that if they continue to wage this war as they have, we will do so soon, h goes on, punishing gazans further will have the effect of fue further extremism and giving birt t new threats. how do we know? this is the lesson of our experience through decades of combatting terrorists in the region. e u.s. should go even further, we should indicate we will actively support major two-stat pce initiative as the only acceptable outcome of this fighting. one way or another, we must also indicate we expect to see him and the opponents of real progress on peace go or israel can expect to see a real reduction in u.s. support for israel. and referring to him as prime minister benjamin netanyahu. what do you make of that analysis from david? >> david is a smart guy. i think the administration is already reinjecting the notion of a political solution in the wake of this. but i have to say, and i thought a lot about this, trying to answer the question, in view of what happened on october 7th, the real question is, the administration, i think, if it wants the israelis to somehow minimize literally with concrete actions palestinian deaths and casualties, they need to present a viable alternative with respect to concrete suggestions in order to accomplish that. i don't understand how and i press military experts on this and just about everybody i know, how do you come up with an alternative military strategy to strike hamas in a densely populated urban environment, where they are clearly embedding their own assets in civilian areas, densely populated, 21,000 humans per square mile, what do you do in order to -- >> why not -- i don't mean to step in here, but why not, and i'm wondering what you heard from them, why not, as david has suggested in this piece, sort of more strikes basically essentially, right? focused strikes, clandestine strikes, the ways in which the military has engaged before. >> that may be essentially where the israelis come out with respect to their ground campaign. i just -- well, first of all, i don't think the administration is going to say or else. should they say or else? yeah. they should say or else if they can come up with a concrete strategy now as israelis are operating in gaza city to alter a different approach to achieve their objective. i think it is a cruel dilemma, but on hostages, and the issue of preserving and protecting palestinian civilians and i don't think there has been an alternative. threatening the israelis without a concrete realistic alternative, i think it is frankly going to be counterproductive and in essence will make the united states look weak. the last thing the president needs is to basically dot dot dot say or else and the israelis don't comply and then what is the president's alternative? imposing sanctions, cutting u.s. military assistance? vowing to support a u.n. council resolution? i'm not sure that that's something the president is willing to consider. >> aaron david miller, as always, a pleasure to talk to you about this. we appreciate you. want to bring in on the phone with us from beirut matt bradley. matt, thank you for jumping on the phone for us. we appreciate it. i know you're at the speech given by hezbollah leader hassan nasrallah earlier today. we heard from ali arouzi who spoke us through the details of what we heard from the leader of hezbollah. tell us more what you heard and the people on the ground as well. >> reporter: i was at the speech and i wasn't at the speech. the fact is that hassan nasrallah used the means he prefers, the safest means for him to speak to his adoring audience. he appealed to them by video. it wasn't the man himself, he was speaking by video, but there was a huge screen and lots of chanting and celebrations. so we saw the same thing that people throughout the region saw in their homes, just at a massive venue. and it was pretty frothy. people there were very excited to see hassan nasrallah, he hasn't spoken for four weeks since this whole thing kicked off back on october 7th. but he made that clear. we have been part of this war since the day after october 7th. and you were talking just a moment ago to ali arouzi, and, yes, this was kind of a bit borrowing from some of his greatest hits. there was a lot of stuff that wasn't so new in his hour and a half long diatribe before all of these people. but there was a lot of stuff that was. he made pains to distinguish this current moment from what we have seen in the past, and also to associate it with some really important elements of palestinian history, like 1948, when the palestinians were removed from their homes or fled and that's very much debated right now still today. this was something that he said is different than the struggles of the lebanese people that hezbollah endured in the patch. the speech was to applaud and venerate all the quote, unquote martyrs that have died so far fighting the israelis and there have been more than 50 hezbollah fighters who died in the past four weeks. he said, people say we haven't been part of this war. will you join the war? he said this repeatedly, we have been part of this fight from the beginning. but he chose a middle ground here, kind of saying we are ready for anything, we are prepared to throw ourselves fully into this fight, but at the same time it was not a declaration of war that certainly quite a few of the people in this audience were hoping for. and were really prepared for. there was a lot of people, a lot of young people we were speaking to who said they want to fight, they want to throw themselves into the fight. but if you look further afield, outside of this place where i was, into the rest of lebanon where i'm driving through right now, you know, there are power outages, there is an economic crisis. there is a lot of people who feel as though they really carried a lot of the burden for the palestinian fight, even though there is an enormous amount of solidarity. hassan nasrallah, a leader of a militant group, he's also a politician. he has to answer to the entire nation of lebanon and benefactors in iran as well. he chose this middle path. it looks as though he could be prepared to expand the fight or withdraw from the border, to sort of shrink his presence there as needed. he lt it really open, so we don't know what is going to be happening next this is what we were expecting. we were expecting he would do a -- i'll take it as i see kind of approach, that was the smarter move. he dsn't want to be tied down to saying we're going to go full on into a war and then face an israeli preliminary attack. he also doesn't want to disappoint his followers, and anger a lf the region who are so pro palestine at this moment. this would be something that would weaken him politically. he does answer to a constituency, not just his supporters among the shia muslim of southern lebanon, but the entire -- all of lebanon and the entire region. >> matt bradley, thank you for jumping on for us. a lot to digest there. coming up next, we're turning our eyes back home here. what the latest jobs report is telling us about the economy. plus, the jury in the sam bankman-fried fraud trial wasted no time coming to a verdict. the crypto king's fall from grace when we're back in just 60 seconds. from grace when we're back in just 60 seconds. 21 past the hour. this morning, the closely watched monthly jobs rept was just released. 150,000 new jobs were added in the month of october, 20,000 less than expected. the unemployment rate rose slightly to 3.9%, which is still near the lowest ita decade. i want to bring in stephanie ruhle to talk about this. predictions were 170,000. we're at 150 now. unemployment ticking up just a hair. >> which is what jerome powell and the fed have actually been aiming for. i know this is counterintuitive, but, member, inflation is one of the biggest problems that we all know it, life is expensive. what the fed has been doing, over the last year, they have been raising rates, when that happens, the goal is to try to slow the economy a little. they don't want the economy to tip into recession. they don't want it to fall off a cliff. what you're seeing in the labor market this slight slowdown, while it is not great for anyone who is necessarily losing their job, we're still under 4%. wages are still growing. it is an overall net positive for the economy. >> does that mean the fed chair could stop increasing interest rates? >> just this week, we saw a pause and the goal is for him to continue that pause for the foreseeable future, because nobody wants to see rates go up again. >> can we talk about sam bankman-fried? >> we sure can. >> within a year, what an aboutface and how quickly this came to a head, the guy can face up to 110 years in prison, essentially life. >> he was truly on top of planet earth a year ago, a year and a half ago. remember the last super bowl? it was the ftx super bowl with tom brady and giselle flanking him, right? it was crazy. and not just famous people. he had the biggest investors on wall street backing him. then he gets charged, last night he was found guilty, all the charges, and how did the government do it? they turned his four top lieutenants in his company, one of them his ex-girlfriend, he then chose to take the stand and, bang, they used his own words, showed up with receipts, you said it, he could face up

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