Plain Talk

"Even markets can be irrational," Senator Kevin Cramer said on this episode of Plain Talk. He was talking about activist investing which has ballooned stock prices for companies like video game retailer Game Stop and movie theater chain AMC, hitting bear investors who had placed bets on those prices declining right in the pocketbooks. What should be done about it? Nothing, says Cramer. At least not right now. He says he's waiting to see how things play out. Cramer also spoke about the impending impeachment trial for former President Donald Trump. The Senator has already cast a vote in favor of a motion declaring the trial unconstitutional but says he won't make up his mind on whether to vote guilty until after he sees the evidence. Still, given his vote on the motion, it seems unlikely he'd vote for Trump to be guilty. Cramer acknowledged that while he didn't approve of Trump's actions before, during, and after the riot at the U.S. Capitol, he didn't think it rose to the level warranting conviction. But even if Trump isn't convicted, is he someone Republicans should be following going forward? Trump is working on remaining a relevant force in the Republican party. "He's going to be," Cramer said. "He's going to have as much influence as he wants to have."

"This bill changes the legal guidelines." That's what former North Dakota Treasurer Kelly Schmidt had to say of a proposal, currently before the Legislature in Bismarck, which would invest 20 percent of the billions in the state's Legacy Fund in North Dakota businesses and infrastructure. Private entrepreneurs could access that capital to start up or expand their businesses. Also, local communities could access the money to finance infrastructure projects cheaper and quicker than they are at present. The Legacy Fund is already invested in these sort of things, just not in North Dakota. Currently, less than 2 percent of the Legacy Fund is invested in North Dakota. Schmidt spent 16 years at Treasurer before declining to run for another term last year, and that means she spent 16 years on the State Investment Board which oversees the Legacy Fund's fiscal management. Her objection to the legislation - it's House Bill 1425, introduced by Rep. Mike Nathe (R-Bismarck) and backed by Insurance Commissioner and SIB member John Godfread - is that it modifies what's called the prudent investor rule. "It's never good to make an exemption to the prudent investor rule," she told me, arguing that the rule is more than North Dakota law but a standard in the investment world. Nathe's legislation modifies it because the goal is to prioritize investment in North Dakota, even if there are better returns available through investments in other parts of the world. Schmidt says she's not against investing in North Dakota, and argues that the State Investment Board hasn't been against it either, but she worries about the Legislature mandating types of investment that might have a too-dramatic impact on the Legacy Fund's earnings. Some in political circles have suggested that Schmidt's opposition to this proposal may be born of a potential job waiting at one of the money management firms the state uses for Legacy Fund investments. Schmidt denied this, calling it a "lie," though she didn't entirely close the door on that sort of gig. She said her plan now is to spend time with her family but added, "if God has a plan for me moving forward I may be open to that, but there are no offers on the table."

President Joe Biden's brand new administration has already taken swift action, by way of an executive order, on all manner of policy fronts. One notable area is energy, where Biden has already withdrawn an already-issued permit for the Keystone XL pipeline. Now he's expected to sign a new order halting new oil and gas development on federal lands. What could this mean for tribal lands? "It's not good," North Dakota Indian Affairs Commissioner Scott Davis said on this episode of Plain Talk. Davis, who is a member of Governor Doug Burgum's administration with family roots in both the Standing Rock Sioux and Turtle Mountain Chippewa tribes, expressed no small amount of "frustration" with the Biden administration for taking this step. "You can't just turn the light switch on and off on a whim," he said. Oil and gas production is hugely important to the people of the MHA Nation whose lands are located in central and western North Dakota. According to Davis, among America's energy-producing tribes, the MHA Nation is "definitely the top." Development on their lands represents roughly a fifth of North Dakota's total oil output. Davis says the tribe has enjoyed a financial windfall from oil development, the revenues of which have been directed toward building schools, health care facilities, and needed infrastructure. If Biden's moratorium stops oil and gas leasing on the MHA Nation's lands "it would set them back 30 years," according to Davis. "They have a trust responsibility to tribal communities," Davis said of the federal government. I asked Davis if he knew if tribal leadership in North Dakota was consulted by the Biden administration on this order. "Not to my knowledge," he told me. Native Americans are the "most regulated people in America," Davis said, adding that he's afraid this abrupt decision by the Biden administration could set a precedent for other policy areas like education.

Rob and Jay talk about a bizarre DUI case before the North Dakota Supreme Court as well as a bill that would reimburse lawmakers for meals.

North Dakota's Legacy Fund, since it was created by the Legislature and approved by voters in 2010, has turned a slice of the state's oil tax revenues into a nearly $8 billion balance. That balance is invested in stocks and bonds across the nation, and the world, including in some ways that, as a moral matter, we shouldn't be happy about. Almost none of it is invested in North Dakota. Rep. Mike Nathe wants to change that. Or, at least, the part where practically none of these North Dakota tax dollars are invested in North Dakota. He has proposed legislation that, if passed, would require that 20 percent of the Legacy Fund's balance (he pins that number at about $1.4 billion) would be earmarked for investment in North Dakota. It would be available as capital not just for companies and start-ups, but also for infrastructure. He talked about the proposal on this episode of Plain Talk. North Dakota has long been plagued by a shortage of capital. It's hard for companies that want to do business in our companies to find investment. Economic diversification is another long-standing issue dilemma for the state. While our most dominant industries, agriculture and energy, have created no small amount of prosperity here, they're also commodity-based and prone to volatility. The state's leaders have long seen this as having our eggs in too few baskets, but a solution hasn't been obvious. Nathe's bill, which has broad support including from legislative leadership, is aimed squarely at those problems. Not only would companies looking to operate in the state have access to more capital, but the funds could also be invested in cheaper financing for needed infrastructure (think things like sewage plants and bridges). Since the state would essentially be lending money to itself, that process would be faster and less of a financial burden to taxpayers. What better use could there be for the Legacy Fund than to address some of North Dakota's legacy problems?

Rob and Jay talk about gun control legislation, the Capitol riot, and a bill that would end an exemption for clergy when it comes to mandatory reporting of child abuse.

"Trump is the best President of my lifetime," Senator Kevin Cramer told me on this episode of Plain Talk. It's a statement he's made publicly many times, even after the ugly events in Washington D.C. on January 6. But Cramer is also critical of President Donald Trump. He has accused Trump of inciting the crowd before the riot, he criticized the president for his conduct during and after the riot, and he said Trump's recent address, finally conceding the election and calling for peace, was tardy. When asked if Donald Trump, after the riot at the capitol, is an effective messenger for Republicans and his movement Cramer said, "I doubt that he is, quite honestly." Should President Trump be impeached and removed from office? That's "exactly the sort of activity that is not conducive to healing this nation," he said. He also believes that Trump does not meet the requirements for removal by his cabinet under the 25th amendment. The text of that amendment states that the President can be removed from office when the Vice President and a majority of cabinet members feel that he or she is "unable to discharge the powers and duties of his office. What really seems to be frustrating Cramer is that the events at the end of Trump's term in office are going to overshadow the accomplishments on tax policy, energy and agriculture regulation, and foreign policy that he's proud to have helped the President enact. "As Republicans distance themselves from Donald Trump the person we have to hold onto his ideas," Cramer said.

Rob and Jay talk about the latest coronavirus news.

Rob and Jay talk about North Dakota's new mask mandate.

Rob and Jay talk election results, Twitter bans, and District 8 controversy.