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Beaten. i think the russians are on their heels. they have lost the war. let's not let them win the peace through some type of interlocutor. steve: let's take a step back and take a look at the broader picture with my remarks on the biden's defense policy, the budget we saw this week. what are your thoughts? was i too harsh in my criticism? >> no, steve, you nailed it. i mean, it was absolutely perfect what you said. look, let's just use one. the navy is a great example. they want 350 ships. there are 280. i don't think you mentioned, though, they are moth balling 24 ships to include cruise mi...

Were willing to give some things up, like perhaps moth balling again. they did it once before in 2007 or 2008. the nyongbyon nuclear plant, but they weren't able to give the other things that the u.s. was demanding, according to the president, and moreover, for that give that they were willing, they wanted the entirety, again in the president's language, the entirety of the sanctions lifted. and that was something the u.s. was unwilling to do. so it's probably a good thing that the president hasn't said we're going to meet again, we're going to do this and do that, because now the question wil...

Clearly shifted at the beginning of these negotiations. number one, we're not going to look for iran dismantling its nuclear program but rather moth balling it. and secondly we're not going to be looking for a permanent deal but rather for a deal that has a term to it which now we know is about 10 to 15 years. >> kareem i want to ask you as well. when you look at how this deal is being interpreted at this point, you really have two different versions of reality. you hear what the iranian officials are hearing back at home on sanctions, immediate sanction relief. you hear what u.s. officials sa...

The american people sort it out. you know, chairman colin powell used to tell us, make military arguments on their merit and let the politicians sort out how it eventually comes out. >> general, then on the substance, then, your views of this kind of reform? >> well, look, the biggest reduction in the armed forces in three-quarters of a century, putting the army back where it was in 1939 when my dad was sworn in prior to world war ii, you can't create a fire department after the fire starts. we're moth balling navy ships, we're standing down all the a-10 ground attacks air force planes, we're ...

Fo now a professor at george washington university. and here in new york, jonathan alter for "the bloomberg news." the nuclear plant that today announced its ground re-opening. what possible purpose would there be for reactivating that plant aside from developing a nuclear weapon? >> well, the other factor would be it's putting back on the table an operation for which it had been rewarded in the past. the moth balling, as you say, of yeongbeyong came as the united states under the bush administration took north korea off the terrorism list. so putting this plant back in play in the north korea...