[Harlow:] Overnight North Korea carried out a new large scale artillery drill as an American nuclear submarine arrives in South Korean waters. That move by the United States now being described as a show of force as tensions continue to escalate.
[Berman:] Yes, today North Korea celebrating the 85th anniversary of the founding of its army and it comes as President Trump told a group of journalists, "I'm not so sure he's so strong like he says he is," talking about the North Korean leader. Let's get right to CNN's Will Ripley inside North Korea, in Pyongyang. Will Ripley, a very large military exercise by the North Koreans.
[Will Ripley, Cnn Correspondent:] Yes. Certainly, there was an expectation of something provocative from Pyongyang and Kim Jong-un, the North Korean leader delivered. We believe he was presiding over this long-range artillery drill involving hundreds of North Korean soldiers. This is the kind of artillery that is pointed directly at South Korea on the DMZ that divides the two countries. Tens of millions of people potentially in firing range and these conventional weapons analysts say actually have the potential to do more damage and kill more people right now in the immediate future than North Korea's nuclear weapons, which are still being developed. Now the sixth nuclear test that everybody has been kind of waiting for. We know that North Korea is ready to push the button on it, it has not happened yet. We will have to watch and see if there is a nuclear test or a more missile launches round this major national holiday. There were large celebrations in the streets of Pyongyang. People dancing in the streets. There was a wreath laying ceremony to honor the hundreds of thousands of North Koreans who were killed in the Korean War. And the U.S. is engaging in provocative behavior of its own, deploying that nuclear submarine, the "USS Michigan" to Pusan in South Korea. Of course, the USS Carl Vinson carrier strike group continues to move closer to the waters off the Korean Peninsula. Then you have President Trump urging the U.N. Security Council to take stronger action especially China to try to reign in the North Korean nuclear threat. He calls it a grave threat facing the entire world John and Poppy.
[Harlow:] And, Will, let's not forget, of course, as you were reporting yesterday, the American professor who was being held now, now currently the third American being held in North Korea. This is your 12th trip inside of North Korea. What is the mood of the people right now there?
[Ripley:] It's really interesting, Poppy, because obviously there is a lot of tension and chaos swirling around outside North Korea. But when you're on the streets here in Pyongyang, people say that they feel secure, that they are confident in the decisions made by their leader. Now, of course, this is an authoritarian country. Political dissent, dissenting voices, opposition of any kind toward the government not allowed. So nobody is going to go on the record and say they don't agree with what Kim Jong-Un is doing. But I have asked people if they are fearful that North Korea may be headed on a dangerous path and they believe, no. They think that they have a viable nuclear weapon that could sink a U.S. aircraft carrier. That's a threat that North Korean state media made a matter of days ago. They believe that even though the United States has more fire power that North Korea can hold its own and perhaps even win in a confrontation and they point to the size of their army. They have more than a million people in their standing army and an additional six million if you count reservist and para military. So people say that they are calm. You don't sense a lot of tension on the ground here in Pyongyang. There is some tension, though, among tourists visiting the country after the detainment of that American professor, Tony Kim. He was about to board his flight at the airport. Authorities pulled him away. We don't know where he's being held right now, what he's charged with and we may not know for quite some time. This is why the State Department, John and Poppy, really urges Americans to think twice for traveling here especially right now given the heightened tensions.
[Berman:] Wise advice.
[Harlow:] Absolutely. Will Ripley, thank you for the reporting inside of North Korea.
[Berman:] All right, joining us now, Democratic Senator Ben Cardin of Maryland. He is the ranking member on the Senate Foreign Relations Committee. Senator Cardin, thanks so much for being with us. I want to get your reaction to this large artillery drill by North Korea. Overnight, there is U.S. naval drills with South Korea and Japan right now, how concerned are you about the overall level of activity, military activity in the region right now?
[Sen. Ben Cardin , Maryland:] First, it is good to be with you. Thank you for having me. This obviously is a very tense situation. We know that the leader of North Korea is unpredictable. He doesn't have a mature judgment. We worry that he could do things that could really set off a tragic episode. So we have to exercise mature leadership. We have to work with the global community to try to reduce tensions in the region. We recognize that North Korea's actions violate international norms, international agreements, and our objective is to change the equation in North Korea and their calculations so they move away from their nuclear ambitions and move more towards the league of nations and being more acceptable in their conduct.
[Harlow:] Senator, you bring up the word maturity and you have said it before. You have said this country needs mature leadership in dealing with North Korea. Overnight, we heard President Trump say that he does not think that Kim Jong-un is as strong as many people might think he is. Do you believe that the Trump administration is exhibiting mature leadership?
[Cardin:] Well, quite frankly, we look forward to understanding what the administration's policy is in regards to North Korea. We will have a meeting tomorrow at the White House. I'm looking forward to getting that information. But it's not exactly clear what the objective in our policy is working with international community. So in North Korea and many other parts of the world the Trump administration has not been clear with Congress, not clear with the American people, not clear with our allies as to exactly what their strategy is about.
[Harlow:] But when you are using the word mature, you seem to be talking about the Trump administration. I just want some clarity on that. Are you saying they are acting immaturely when it comes to North Korea?
[Cardin:] I don't know. I don't know their policy so it is hard for me to evaluate that policy. It is extremely important that he work with the members of Congress, our committee, Senate Foreign Relations has that responsibility. We are a co-equal branch of government. The American people have a right to understand what our objectives are. There is no military solution to these types of problems. The best solution is to try to negotiate and change North Korea's calculations. There is ways of doing that. China has a direct interest in a nonnuclear Korean Peninsula. We have a common objective there. Although, they do not favor our system of government and they would like to see a viable North Korea, we can work with China and of course, there was that meeting with the premiere and the president. We have not yet been fully briefed as to what was discussed in that meeting. So it is too early for me to tell whether the Trump administration is acting properly or not because I don't know their policy.
[Berman:] You will be part of an all senators briefing tomorrow at the White House. We'll check in with you after that to see what your opinion is then. Some other news this morning, we just learned that the Senate Judiciary Committee is going to have what we believe is a public hearing with Sally Yates, the former acting attorney general and also the former DNI, James Clapper. They're going to come testify about this investigation into Russian ties possibly with Trump associates. That's the Judiciary Committee. There is also the Senate Intelligence Committee. You know, you can see this investigation sort of spreading. Are you comfortable with where it's headed right now?
[Cardin:] I think the congressional committees have a responsibility of oversight. I think what the Judiciary Committee is doing is absolutely appropriate. What the Intelligence Committee is doing is appropriate. But we need an independent commission that does not have the constraints of a congressional committee, that has broader jurisdiction and can operate in a non-partisan environment to give a full report to the American people as to what Russia was doing here in the United States during this past election. Contacts they made and how that squares with America's national security priorities. That independent commission, similar to what we used after the attack on 911 is needed, but congressional committees have responsibility and they should conduct oversight as the Judiciary Committee is doing.
[Harlow:] Your committee, Senator, is holding hearings today on U.S. involvement in Libya. Last week the president said, and I'm quoting, "I do not see a role in Libya for the United States." His argument is, look, the U.S. cannot be everywhere and he clearly doesn't see a role for the U.S. in Libya right now. Is the president right on that?
[Cardin:] No. I think the United States has to exercise global leadership. I was with the Security Council ambassadors yesterday before they had lunch with the president and the message was very clear that U.S. leadership is critically important. America's strength is in our values and what we stand for. So when we talk about what we can do in Libya to get a government that represents the people of Libya so there isn't a void where ISIS can grow, if the United States is absent, then there is more likelihood you will see Russia's involvement. If we see Russia's involvement, it is not going to be good for our interests. You also see voids that are picked up by terrorists. That's not good for U.S. interest. So we have a responsibility to be part. Obviously, we will not be using American troops. The local community and local security must defend the country, but we need to be part of the operation to secure Libya for its future.
[Berman:] Senator Ben Cardin of Maryland, great to have you with us. Thanks so much for your time. All right. President Trump we may be within 24 hours of a major announcement on big tax cuts. Sources say he wants to slash the corporate tax rate down to 15 percent, but where exactly would he get the money to do that? Who would pay for it?
[Harlow:] The markets, of course, very closely following this. We are moments away from the hoping bell on Wall Street. None other than our chief business correspondent, Christine Romans, is here with what the markets think.
[Christine Romans, Cnn Chief Business Correspondent:] Lower corporate taxes means bigger profit for big companies, right, and that is something driving these stock markets higher. Caterpillar, 3M, DuPont, a bunch of big names in the Dow better than expected earnings that are already making an awful lot of money and likely will make more money if you have lower taxes. All of those are moving higher here today. It is the tax story that is driving the tax story and earnings driving Wall Street right now. Look at the Nasdaq, almost to 6,000. A milestone we have never seen before. Record highs for Nasdaq, for tech stocks, expect this rally to continue today.
[Berman:] I remember when investors in Wall Street to be concerned about deficits and the national debt. That would add, what, $2 trillion to the debt over ten years?
[Romans:] It would. What this market says is this is a president who is more interested in corporate profits than red ink for taxpayers and that's good for companies bottom line. This is a business friendly president, a Wall Street friendly president. The bank stocks have done very, very well. So the guy that champions the little guy is helping the big guy.
[Harlow:] He did call himself the king of debt not that long ago, right?
[Berman:] Maybe right about that. All right. Christine Romans, stick around. A lot more to discuss. We'll be right back.