1 00:00:00,120 --> 00:00:04,560 Speaker 1: The Team forty seven podcast is sponsored by Good Ranchers. 2 00:00:04,120 --> 00:00:06,360 Speaker 2: Making the American Farm Strong Again. 3 00:00:08,720 --> 00:00:13,760 Speaker 3: Team forty seven with Clay and Buck, starts now news 4 00:00:13,920 --> 00:00:15,200 Speaker 3: that is out there. 5 00:00:15,360 --> 00:00:19,959 Speaker 1: Inflation softening down to two point four percent, the lowest 6 00:00:20,079 --> 00:00:24,680 Speaker 1: rate in four years. Prices actually went down point one 7 00:00:24,880 --> 00:00:29,560 Speaker 1: percent since the last reading. Trump has raised tariffs to 8 00:00:29,720 --> 00:00:35,320 Speaker 1: one hundred and forty five percent on China, and we 9 00:00:35,440 --> 00:00:38,599 Speaker 1: have a budget resolution that has passed the House two 10 00:00:38,720 --> 00:00:42,480 Speaker 1: sixteen to to fourteen, which will lead to a tax cut, 11 00:00:42,520 --> 00:00:45,520 Speaker 1: the Big Beautiful Bill as Trump is calling it. Also 12 00:00:45,960 --> 00:00:50,280 Speaker 1: will add more for border security many different moving parts. 13 00:00:50,320 --> 00:00:54,240 Speaker 1: Their stock market back down today after one of the 14 00:00:54,240 --> 00:00:58,800 Speaker 1: biggest days in the history of stock market rallies yesterday. 15 00:00:59,520 --> 00:01:02,560 Speaker 1: We will into that a bit more, but we bring 16 00:01:02,600 --> 00:01:05,440 Speaker 1: on now. We've been decided Buck and I did a 17 00:01:05,480 --> 00:01:08,600 Speaker 1: while back. As the tariff process has played itself out, 18 00:01:09,000 --> 00:01:13,600 Speaker 1: Let's bring on people with strong economic backgrounds to talk 19 00:01:13,640 --> 00:01:15,959 Speaker 1: with all of you. Yesterday we had our Laugher on 20 00:01:16,760 --> 00:01:19,080 Speaker 1: at the same time. Today we have on Stephen Moore, 21 00:01:19,520 --> 00:01:24,039 Speaker 1: President Trump's former senior economic advisor. He is right now 22 00:01:24,720 --> 00:01:29,640 Speaker 1: the co founder of Committee to Unleash Prosperity, and we 23 00:01:29,680 --> 00:01:31,959 Speaker 1: bring him in now and Steve and I appreciate you 24 00:01:32,000 --> 00:01:33,800 Speaker 1: making the time for us. You've been on. It's been 25 00:01:33,840 --> 00:01:35,640 Speaker 1: a couple of years since you were on with us 26 00:01:35,720 --> 00:01:40,200 Speaker 1: last What do you think from an economic perspective, the 27 00:01:40,280 --> 00:01:44,800 Speaker 1: millions of people listening to us right right now should 28 00:01:44,959 --> 00:01:48,360 Speaker 1: know about what President Trump is doing and its impact. 29 00:01:49,040 --> 00:01:50,880 Speaker 2: Well, Kaie, thanks so much for having me. And by 30 00:01:50,920 --> 00:01:53,880 Speaker 2: the way, how cool is that you had our laugher 31 00:01:53,920 --> 00:01:56,840 Speaker 2: on the most famous economists in the world yesterday? Yeah, 32 00:01:56,840 --> 00:02:01,120 Speaker 2: not bad, that's pretty cool. Have to say that. He 33 00:02:01,160 --> 00:02:02,880 Speaker 2: and I wrote a piece in the Wall Street Journal 34 00:02:03,040 --> 00:02:07,360 Speaker 2: on Tuesday urging Trump to you know, let's just offer 35 00:02:07,840 --> 00:02:11,480 Speaker 2: these countries zero terrorists and see if you know they'll 36 00:02:11,520 --> 00:02:14,720 Speaker 2: lower their terrasts zero, we'd lower ours. And I think 37 00:02:14,720 --> 00:02:17,080 Speaker 2: that was the impetus for Trump putting this proposal on 38 00:02:17,120 --> 00:02:20,760 Speaker 2: the table, which I thought was fantastic. That you're right, 39 00:02:21,000 --> 00:02:25,040 Speaker 2: yesterday was the biggest point increase in the Dow Jones 40 00:02:25,080 --> 00:02:28,280 Speaker 2: in the history of the stock market. Now it's down today, 41 00:02:29,200 --> 00:02:31,120 Speaker 2: but it's not down nearly as much as it was 42 00:02:31,200 --> 00:02:33,280 Speaker 2: up yesterday. And then look, this is going to be 43 00:02:33,280 --> 00:02:35,959 Speaker 2: a top sea turvy market for the next number of 44 00:02:36,040 --> 00:02:38,359 Speaker 2: months until we get this settled. But I got to 45 00:02:38,360 --> 00:02:41,359 Speaker 2: tell you, having worked with Donald Trump and seen him 46 00:02:41,360 --> 00:02:44,799 Speaker 2: in action, upfront and personal, this guy is three steps 47 00:02:44,840 --> 00:02:47,400 Speaker 2: ahead of everybody else on the chessboard. He is a 48 00:02:47,440 --> 00:02:51,320 Speaker 2: master negotiator. He knows what he's doing. And in the end, 49 00:02:51,960 --> 00:02:55,440 Speaker 2: I think from my first advice to people, just now 50 00:02:55,480 --> 00:02:57,560 Speaker 2: would be a terrible time to sell. You never want 51 00:02:57,600 --> 00:03:01,360 Speaker 2: to sell, you know when stocks have been for falling. 52 00:03:01,680 --> 00:03:06,000 Speaker 2: That's violating the first rule of stock convesting. You want 53 00:03:06,040 --> 00:03:09,079 Speaker 2: to buy low and sell high. But sometimes people get panicked. 54 00:03:10,720 --> 00:03:13,440 Speaker 2: That's number one. Number two. I believe what Trump is 55 00:03:13,480 --> 00:03:18,639 Speaker 2: trying to do from an economics standpoint is his strategy 56 00:03:18,760 --> 00:03:24,840 Speaker 2: is to isolate the bad actor, the new Soviet Union 57 00:03:25,080 --> 00:03:28,240 Speaker 2: of the world, and that is China. China is a 58 00:03:28,280 --> 00:03:34,080 Speaker 2: country that is a national security and economic security threat 59 00:03:34,120 --> 00:03:36,680 Speaker 2: to the United States is I think they are to 60 00:03:36,720 --> 00:03:38,960 Speaker 2: the free world. And so what he's trying to do, 61 00:03:39,040 --> 00:03:42,440 Speaker 2: I think is unite the rest of the world against China, 62 00:03:42,560 --> 00:03:46,920 Speaker 2: a kind of decouple from them because because they are 63 00:03:46,960 --> 00:03:49,640 Speaker 2: such a threat. And I think that strategy can work. 64 00:03:49,680 --> 00:03:51,960 Speaker 2: But we're going to find out. We're going to really 65 00:03:52,040 --> 00:03:55,320 Speaker 2: see whether or who are friends and allies I are 66 00:03:55,440 --> 00:03:56,440 Speaker 2: and who are our enemies? 67 00:03:56,680 --> 00:03:56,960 Speaker 4: Will? 68 00:03:57,080 --> 00:03:59,440 Speaker 2: Where will Europe be? Will they stand with us? What 69 00:03:59,440 --> 00:04:01,760 Speaker 2: about Britain? Well, they stand with us? What about Japan? 70 00:04:01,840 --> 00:04:05,360 Speaker 2: What about Canada? We need to unite. Trump is the 71 00:04:05,360 --> 00:04:07,920 Speaker 2: guy to do it. But we'll see. 72 00:04:08,760 --> 00:04:11,440 Speaker 1: Okay, so let's dive into this. You mentioned people who 73 00:04:11,520 --> 00:04:15,080 Speaker 1: own stocks right now, which is a huge percentage. Yeah, 74 00:04:15,240 --> 00:04:18,960 Speaker 1: huge percentage of our audience out there, either in pensions 75 00:04:19,000 --> 00:04:21,479 Speaker 1: four oh one k's or people buying it and selling 76 00:04:21,520 --> 00:04:26,160 Speaker 1: individual stocks. What would you tell people who are nervous, apprehensive, 77 00:04:27,040 --> 00:04:30,279 Speaker 1: maybe pay attention to stock prices only when they're really 78 00:04:30,360 --> 00:04:33,560 Speaker 1: kind of popping in one way or the other. How 79 00:04:33,680 --> 00:04:39,000 Speaker 1: should they handle emotional reactions to valuations on the stock 80 00:04:39,040 --> 00:04:44,960 Speaker 1: market from your perspective as a highly trained, highly successful economist. 81 00:04:45,560 --> 00:04:48,719 Speaker 2: Well, I'm an economist. I'm not a financial analyst, and 82 00:04:48,760 --> 00:04:50,640 Speaker 2: sometimes sometimes economists are. 83 00:04:50,560 --> 00:04:53,279 Speaker 4: Not great stock pickers are. The great greatest. 84 00:04:53,000 --> 00:04:55,880 Speaker 2: Economists who ever lived was Milton Friedman, and he was terrible. 85 00:04:55,920 --> 00:05:00,000 Speaker 2: It's not investing, So yeah, I'll say that as a 86 00:05:00,040 --> 00:05:03,599 Speaker 2: prelude to But the advice I'm going to give to 87 00:05:03,720 --> 00:05:06,840 Speaker 2: your listeners is really pretty straightforward, and I think almost 88 00:05:06,880 --> 00:05:10,920 Speaker 2: every financial honest would agree with me. It's called stocks 89 00:05:11,000 --> 00:05:13,560 Speaker 2: for the long run. So in other words, if you're 90 00:05:13,600 --> 00:05:17,440 Speaker 2: investing for you know, for it returns five years from now, 91 00:05:17,440 --> 00:05:19,440 Speaker 2: ten years from now, twenty years from now, depending on 92 00:05:19,440 --> 00:05:21,320 Speaker 2: what your age is, you want to be in the 93 00:05:21,320 --> 00:05:24,280 Speaker 2: American stock market, it goes up. It goes up. Now, 94 00:05:24,320 --> 00:05:27,480 Speaker 2: that doesn't mean that you get these kind of downturns, 95 00:05:27,760 --> 00:05:30,520 Speaker 2: but the real rate of return of the US stock 96 00:05:30,600 --> 00:05:33,359 Speaker 2: market since the New York Stock Exchange opened its doors 97 00:05:33,480 --> 00:05:37,360 Speaker 2: is like seven percent. So what I'm saying is, if 98 00:05:37,400 --> 00:05:39,200 Speaker 2: you don't have to take your money out, if you're 99 00:05:39,240 --> 00:05:41,880 Speaker 2: not cash squeezed right now, keep it in the market 100 00:05:41,880 --> 00:05:43,840 Speaker 2: because it's going to do well over time. And again 101 00:05:43,880 --> 00:05:46,120 Speaker 2: I'm not saying a year from now, maybe you're from now, 102 00:05:46,160 --> 00:05:49,080 Speaker 2: it maybe a little bit lower. What I'm saying is 103 00:05:49,120 --> 00:05:52,720 Speaker 2: I feel very very strongly that three years from from now, 104 00:05:52,800 --> 00:05:54,920 Speaker 2: five years from now, you're going to get a nice 105 00:05:54,960 --> 00:05:57,800 Speaker 2: return on your money. And if anything, I'd be buying 106 00:05:57,839 --> 00:05:59,360 Speaker 2: stock right now, not selling it. 107 00:06:00,000 --> 00:06:02,760 Speaker 1: Hey, let's go into China in particular, because this is 108 00:06:02,800 --> 00:06:05,800 Speaker 1: obviously now the focus. Based on the way the President 109 00:06:05,839 --> 00:06:10,240 Speaker 1: has responded with yesterday's news, he really has isolated China 110 00:06:10,360 --> 00:06:13,760 Speaker 1: tariffs up now to one hundred and forty five percent 111 00:06:13,920 --> 00:06:18,320 Speaker 1: on China. From your perspective, what does a fair economic 112 00:06:18,400 --> 00:06:19,839 Speaker 1: deal with China look like? 113 00:06:21,400 --> 00:06:26,280 Speaker 2: Well, China cheats, They steal, They steal our intellectual property, 114 00:06:26,400 --> 00:06:31,680 Speaker 2: they steal our patents. It is a very predatory nation. 115 00:06:32,400 --> 00:06:35,080 Speaker 2: So I think we have to be very tough with China. 116 00:06:35,240 --> 00:06:36,520 Speaker 2: And and by the way, you're talking to a guy 117 00:06:36,520 --> 00:06:39,680 Speaker 2: who's a free trader. You know, I like free trade. 118 00:06:39,920 --> 00:06:42,120 Speaker 2: I'm not a big fan of tariff's. I agree with 119 00:06:42,160 --> 00:06:44,159 Speaker 2: eighty percent of what Trump is doing. I'm not a 120 00:06:44,240 --> 00:06:47,119 Speaker 2: huge fan of terrists. Only the only thing I would 121 00:06:47,200 --> 00:06:50,159 Speaker 2: fault Trump on is that I think we should you know, 122 00:06:50,200 --> 00:06:53,039 Speaker 2: why is he going after Canada and some of our allies. 123 00:06:53,080 --> 00:06:55,080 Speaker 2: We really have to focus on China, and that's I 124 00:06:55,080 --> 00:06:58,920 Speaker 2: think that's where he is right now. So uh that 125 00:06:59,160 --> 00:07:01,800 Speaker 2: that's that's the issue. I mean, come on, China's on 126 00:07:01,839 --> 00:07:05,680 Speaker 2: the verge of possibly invading Taiwan. They're building up their 127 00:07:05,720 --> 00:07:10,080 Speaker 2: military and in a very aggressive way. They don't They're tariffs 128 00:07:10,280 --> 00:07:13,240 Speaker 2: are three to four times higher than ours are. And 129 00:07:13,280 --> 00:07:15,640 Speaker 2: I want to make sure that your listeners understand this. 130 00:07:16,280 --> 00:07:17,920 Speaker 2: You know, I do a lot of I'm doing, like 131 00:07:18,000 --> 00:07:20,680 Speaker 2: the BBC, I do a lot of like media in 132 00:07:21,080 --> 00:07:24,360 Speaker 2: like Europe and Japan. You know, they're interested what Trump's 133 00:07:24,400 --> 00:07:27,600 Speaker 2: going to do, and they're so self and they're self righteous, 134 00:07:27,640 --> 00:07:30,200 Speaker 2: and they're they're like, why is Trump doing this? He's 135 00:07:30,200 --> 00:07:32,920 Speaker 2: starting a trade war? And I said, wait a minute, 136 00:07:32,960 --> 00:07:35,280 Speaker 2: what are you people talking about. We have the lowest 137 00:07:35,320 --> 00:07:39,000 Speaker 2: tariffs in the world. They're terrorists are higher than ours, 138 00:07:39,200 --> 00:07:41,480 Speaker 2: So how can they say we're starting a trade war. 139 00:07:42,440 --> 00:07:44,960 Speaker 1: No, it's a fantastic question when we've been asking on 140 00:07:45,000 --> 00:07:48,000 Speaker 1: this program for some time. Okay, so you in general 141 00:07:48,080 --> 00:07:51,480 Speaker 1: are a free trader. There is a tension and it 142 00:07:51,600 --> 00:07:55,840 Speaker 1: certainly has been I think exposed to some degree between 143 00:07:55,920 --> 00:07:58,360 Speaker 1: say Elon Musk, who is more of a free trader 144 00:07:58,400 --> 00:08:00,840 Speaker 1: than not, and Peter and r who is very much 145 00:08:01,000 --> 00:08:04,280 Speaker 1: not a free trader. So here is the challenge, so 146 00:08:04,360 --> 00:08:06,440 Speaker 1: far as I can see it is you kind of 147 00:08:06,480 --> 00:08:09,440 Speaker 1: have a schism, for lack of a better way to 148 00:08:09,520 --> 00:08:13,160 Speaker 1: describe it. What Trump is advocating for, on one hand 149 00:08:13,240 --> 00:08:15,800 Speaker 1: is free trade, and yesterday, talking with Art Laugher, I 150 00:08:15,840 --> 00:08:19,239 Speaker 1: said free trade with Europe can make sense. Japan, South Korea, 151 00:08:19,640 --> 00:08:21,880 Speaker 1: so called good actors right. For lack of a better 152 00:08:21,880 --> 00:08:24,320 Speaker 1: way to describe it, then there are I think it's 153 00:08:24,320 --> 00:08:26,440 Speaker 1: fair to say bad actors in China would be the 154 00:08:26,440 --> 00:08:29,960 Speaker 1: most prominent and powerful among them. How do you balance 155 00:08:30,160 --> 00:08:33,160 Speaker 1: the free trade perspectives with a country that is not 156 00:08:33,320 --> 00:08:36,560 Speaker 1: committed to free trade and end up with a deal 157 00:08:36,640 --> 00:08:39,800 Speaker 1: that makes sense across the board from your perspective. 158 00:08:40,120 --> 00:08:42,520 Speaker 2: Well, that's a great question, and I'm going to give 159 00:08:42,559 --> 00:08:45,400 Speaker 2: you a kind of historical parallel. You know, in the 160 00:08:45,480 --> 00:08:48,440 Speaker 2: nineteen thirties, you know, we were a pretty free trade country, 161 00:08:48,760 --> 00:08:52,840 Speaker 2: and we were trading with Japan. You know, We've almost 162 00:08:52,920 --> 00:08:55,360 Speaker 2: literally sold them the lead and the steel that they 163 00:08:55,480 --> 00:08:57,800 Speaker 2: used for the bombs that they dropped on Pearl Harbor. 164 00:08:58,640 --> 00:09:00,520 Speaker 2: So that was kind of a tough thing to do. 165 00:09:00,840 --> 00:09:03,480 Speaker 2: And so do we really want to do that again 166 00:09:03,520 --> 00:09:06,400 Speaker 2: with China? I say no, I think we need to 167 00:09:06,520 --> 00:09:11,000 Speaker 2: really be very cautious about China. I also like and 168 00:09:11,040 --> 00:09:13,160 Speaker 2: by the way, Trump has changed my mind a little 169 00:09:13,200 --> 00:09:15,280 Speaker 2: bit on this stuff because I've watched him in action. 170 00:09:16,160 --> 00:09:18,199 Speaker 2: I used to be like a unilateral free trader, we 171 00:09:18,200 --> 00:09:20,360 Speaker 2: should have low terrace, no matter what other countries do. 172 00:09:20,600 --> 00:09:21,800 Speaker 4: I no longer believe that. 173 00:09:21,920 --> 00:09:25,120 Speaker 2: I think Trump is right. That look, I like this 174 00:09:25,360 --> 00:09:27,640 Speaker 2: idea of reciprocity. If you're going to hit us, if 175 00:09:27,679 --> 00:09:29,120 Speaker 2: you're going to hit us in the nose with a 176 00:09:29,200 --> 00:09:31,440 Speaker 2: twenty percent terrap, you know what, We're going to hit 177 00:09:31,520 --> 00:09:33,400 Speaker 2: you in the nose. And if you keep it up, 178 00:09:33,440 --> 00:09:35,640 Speaker 2: you know we're going to ratchet it. I think at 179 00:09:35,640 --> 00:09:38,839 Speaker 2: the end of the day, I really believe this that 180 00:09:38,880 --> 00:09:41,960 Speaker 2: Trump is going to force these other countries to play 181 00:09:42,000 --> 00:09:45,480 Speaker 2: by the rules, create a level playing field that benefits everyone. 182 00:09:45,840 --> 00:09:49,880 Speaker 1: Okay, we're talking with Stephen Moore, Trump economic advisor, very 183 00:09:49,920 --> 00:09:52,600 Speaker 1: successful economists. Let me ask you this question big picture. 184 00:09:53,679 --> 00:09:56,280 Speaker 1: I'm sure you remember this well. I was a young 185 00:09:56,320 --> 00:09:59,200 Speaker 1: guy at the time. But in the nineteen eighties, those 186 00:09:59,240 --> 00:10:01,760 Speaker 1: of us who remember the nineteen eighties, the idea was 187 00:10:02,160 --> 00:10:04,960 Speaker 1: Japan was going to buy up everything. Their economy was 188 00:10:05,000 --> 00:10:08,520 Speaker 1: on fire, they were growing like crazy, and there was 189 00:10:08,559 --> 00:10:12,600 Speaker 1: a great deal of fear about Japanese ownership of American assets. 190 00:10:13,240 --> 00:10:16,640 Speaker 1: Now forty years later, the japan economies around the same 191 00:10:16,760 --> 00:10:20,680 Speaker 1: size ish at least according to the stock market. Is 192 00:10:20,840 --> 00:10:24,080 Speaker 1: China somewhat like Japan, where you're going to see this 193 00:10:24,280 --> 00:10:27,160 Speaker 1: massive growth and then they're kind of going to run 194 00:10:27,200 --> 00:10:29,960 Speaker 1: into a wall now here. We know the demographics. China's 195 00:10:29,960 --> 00:10:33,559 Speaker 1: population is but likely begun to decline. You know, there 196 00:10:33,600 --> 00:10:36,920 Speaker 1: are also it's getting more expensive to make goods in China, 197 00:10:36,960 --> 00:10:41,319 Speaker 1: which is how as economies rise, the expectation of workers increases. 198 00:10:41,640 --> 00:10:44,880 Speaker 1: Do you see a parallel potentially between the rapid rise 199 00:10:44,960 --> 00:10:48,319 Speaker 1: that we saw with Japan and then the plateau with 200 00:10:48,360 --> 00:10:50,400 Speaker 1: what we have seen with China as well? 201 00:10:51,120 --> 00:10:55,000 Speaker 2: Yeah, and even more so. Look, China is a centrally 202 00:10:55,040 --> 00:10:58,800 Speaker 2: planned economy that is run by their government. It is 203 00:10:58,880 --> 00:11:02,040 Speaker 2: run out of Beijing. One lesson of history. You're a 204 00:11:02,120 --> 00:11:05,520 Speaker 2: history historian, I am a bit too. One of the 205 00:11:05,600 --> 00:11:08,880 Speaker 2: most important lessons of economic history is that central planning 206 00:11:08,920 --> 00:11:11,400 Speaker 2: does not work right right, It does not work. It 207 00:11:11,440 --> 00:11:13,280 Speaker 2: didn't work for the Soviet Union, It's not going to 208 00:11:13,360 --> 00:11:16,719 Speaker 2: work for China. So China's economy will implode. And I'm 209 00:11:16,720 --> 00:11:18,320 Speaker 2: not saying it's going to happen next year, but it 210 00:11:18,360 --> 00:11:21,560 Speaker 2: will implode. It's going to happen because you know, we 211 00:11:21,600 --> 00:11:24,120 Speaker 2: have a free enterprise system where we let capital markets 212 00:11:24,120 --> 00:11:27,319 Speaker 2: and our small businessmen and women make the decisions. They 213 00:11:27,360 --> 00:11:28,800 Speaker 2: have the government making the decision. 214 00:11:28,920 --> 00:11:29,840 Speaker 4: Who are you going to bet on? 215 00:11:30,520 --> 00:11:32,280 Speaker 1: No? I agree Okay, so let me ask you this 216 00:11:32,360 --> 00:11:34,480 Speaker 1: last question. I appreciate the time. I know how busy 217 00:11:34,520 --> 00:11:37,440 Speaker 1: you are doing interviews all over the world. Who has 218 00:11:37,600 --> 00:11:40,800 Speaker 1: more short term pressure on them in a teara for 219 00:11:41,559 --> 00:11:45,679 Speaker 1: by your analysis, China or the United States? Whose economy 220 00:11:45,720 --> 00:11:48,280 Speaker 1: suffers more as we go back and forth to stare 221 00:11:48,320 --> 00:11:48,960 Speaker 1: each other down. 222 00:11:49,280 --> 00:11:53,920 Speaker 2: Well there, Look, you know when we sneeze, China catches pneumonia, 223 00:11:54,080 --> 00:11:57,040 Speaker 2: they have to trade with us. If we if we 224 00:11:57,160 --> 00:11:59,760 Speaker 2: stopped at trading with China, it would hurt our economy, 225 00:11:59,800 --> 00:12:02,640 Speaker 2: but their economy would go into a great depression. That's 226 00:12:02,679 --> 00:12:05,600 Speaker 2: the leverage that we have over China. And Trump is 227 00:12:05,640 --> 00:12:09,520 Speaker 2: playing that card. But it's a complicated question because they 228 00:12:09,559 --> 00:12:12,920 Speaker 2: don't face elections. Yes, President ge what's going to stop him? 229 00:12:12,920 --> 00:12:15,319 Speaker 2: He may be willing to throw his economy and do 230 00:12:15,440 --> 00:12:18,600 Speaker 2: a depression. You know, luckily we are a democratic country 231 00:12:18,800 --> 00:12:21,360 Speaker 2: and so you know, our pain threshold is probably a 232 00:12:21,440 --> 00:12:23,480 Speaker 2: lot of less than theirs are because they're run by 233 00:12:23,480 --> 00:12:25,319 Speaker 2: a dictator, no doubt. 234 00:12:25,520 --> 00:12:28,400 Speaker 1: Well, that's an interesting way of contemplating it. What I know, 235 00:12:28,440 --> 00:12:30,679 Speaker 1: I said last question, But what do you think Chairman 236 00:12:30,840 --> 00:12:34,480 Speaker 1: Z is hearing and thinking as this process plays out? 237 00:12:34,520 --> 00:12:36,200 Speaker 1: I think a lot of people can get into Trump's 238 00:12:36,200 --> 00:12:39,000 Speaker 1: mind and understand the United States perspective. What do you 239 00:12:39,000 --> 00:12:40,760 Speaker 1: think the China perspective is right now? 240 00:12:41,520 --> 00:12:43,800 Speaker 2: I think they're scared. You know it's not being covered 241 00:12:43,840 --> 00:12:46,320 Speaker 2: by the media, but their market has fallen much more 242 00:12:46,320 --> 00:12:49,240 Speaker 2: than ours. Hass Yes, you know they're facing They are 243 00:12:49,280 --> 00:12:52,160 Speaker 2: facing a very very severe recession. So I think they're 244 00:12:52,200 --> 00:12:54,040 Speaker 2: freaked out right now. They don't know how to deal 245 00:12:54,080 --> 00:12:56,800 Speaker 2: with Trump. I think Trump is as the upper hand here, 246 00:12:57,120 --> 00:12:59,679 Speaker 2: and I'm going to bet on Trump in America, not China. 247 00:13:00,080 --> 00:13:02,679 Speaker 1: Stephen Moore, I loved the editorial that you and Art 248 00:13:02,720 --> 00:13:05,360 Speaker 1: laugher pin for the Wall Street Journal. We appreciate you 249 00:13:05,400 --> 00:13:07,640 Speaker 1: coming on and thank Art again. I need to text 250 00:13:07,720 --> 00:13:10,440 Speaker 1: him to thank him for coming on yesterday. We appreciate 251 00:13:10,480 --> 00:13:13,160 Speaker 1: your expertise, and anytime you want to come on, let 252 00:13:13,240 --> 00:13:13,440 Speaker 1: us know. 253 00:13:14,280 --> 00:13:15,560 Speaker 2: Okay, thanks so much. Take care. 254 00:13:16,960 --> 00:13:21,559 Speaker 3: You're listening to Team forty seven with Clay and Buck Larry. 255 00:13:21,559 --> 00:13:23,600 Speaker 1: We appreciate you coming on with us. This is the 256 00:13:23,640 --> 00:13:26,800 Speaker 1: third straight day I believe that we have had major 257 00:13:27,200 --> 00:13:30,199 Speaker 1: economic breakdowns in the second hour of the show, which 258 00:13:30,240 --> 00:13:32,199 Speaker 1: doesn't happen all the time. We had an Art Laugher 259 00:13:32,240 --> 00:13:35,520 Speaker 1: a couple of days ago at this time Stephen Moore yesterday, 260 00:13:35,880 --> 00:13:39,480 Speaker 1: please to be joined by you now. And so mister 261 00:13:39,520 --> 00:13:42,480 Speaker 1: Cudlow here, what would you say to this huge audience 262 00:13:42,520 --> 00:13:45,559 Speaker 1: out there that we should know as we sit here 263 00:13:45,600 --> 00:13:48,840 Speaker 1: on Friday and the trade war between the United States 264 00:13:48,880 --> 00:13:51,720 Speaker 1: and Canada. You know, in the in terms of like 265 00:13:51,880 --> 00:13:55,520 Speaker 1: a hockey fight, both sides have thrown down the gloves, right, 266 00:13:55,600 --> 00:13:57,959 Speaker 1: We've got the stare doown going on. The punches are 267 00:13:57,960 --> 00:13:58,760 Speaker 1: being thrown. 268 00:14:01,679 --> 00:14:06,920 Speaker 4: Clay. It really is. It's if you're looking for a 269 00:14:07,000 --> 00:14:11,120 Speaker 4: trade war, I guess it's China US. The Canadian part 270 00:14:11,200 --> 00:14:16,560 Speaker 4: is pretty quiet right now. In fact, Canada and their 271 00:14:16,600 --> 00:14:22,560 Speaker 4: new prime minister what's his name, Mark Carney. I know 272 00:14:22,680 --> 00:14:26,440 Speaker 4: the guy. He's the central bankers. He want to do 273 00:14:26,480 --> 00:14:28,920 Speaker 4: a deal with Trump. He wants to do a deal. 274 00:14:29,000 --> 00:14:31,880 Speaker 4: So that's not the issue. But look what I think 275 00:14:32,040 --> 00:14:36,880 Speaker 4: you know. The major point here is Trump is waging 276 00:14:36,920 --> 00:14:44,360 Speaker 4: war and fighting back against unfair trading policies and rules 277 00:14:44,360 --> 00:14:48,680 Speaker 4: over the past many decades, probably have to go into 278 00:14:48,880 --> 00:14:53,680 Speaker 4: the mid to late nineties. And the key point is, 279 00:14:54,160 --> 00:15:00,720 Speaker 4: first of all, China was allowed most Favored Nations UH 280 00:15:01,760 --> 00:15:04,240 Speaker 4: and that meant that, you know, we could trade with 281 00:15:04,320 --> 00:15:09,800 Speaker 4: them without any legal constraints. And then they ended the 282 00:15:09,840 --> 00:15:15,720 Speaker 4: World Trade Organization WTO, and I believe the year two thousand, 283 00:15:16,480 --> 00:15:19,880 Speaker 4: all right, and so what did they do? They basically 284 00:15:20,080 --> 00:15:25,240 Speaker 4: had very high tariffs, much higher than ours. Okay, I 285 00:15:25,240 --> 00:15:29,280 Speaker 4: mean their average tariff rate was thirty forty percent United 286 00:15:29,280 --> 00:15:31,880 Speaker 4: States two and a half percent, two point seven percent. 287 00:15:33,080 --> 00:15:35,160 Speaker 4: That disadvantage to us was it? 288 00:15:35,240 --> 00:15:35,400 Speaker 1: You know? 289 00:15:35,480 --> 00:15:38,920 Speaker 4: That means we can't sell to them because their tariffs 290 00:15:38,920 --> 00:15:42,760 Speaker 4: are so high and they price out our goods. But 291 00:15:42,840 --> 00:15:46,600 Speaker 4: they loved to sell to us, and with cheap goods. 292 00:15:47,960 --> 00:15:51,400 Speaker 4: Their government, you know, it's a communist country. Their government 293 00:15:52,000 --> 00:15:58,040 Speaker 4: subsidizes all production and wages, so they keep the wages low. 294 00:15:58,320 --> 00:16:01,920 Speaker 4: They keep the production low because all government subsidies. So 295 00:16:01,960 --> 00:16:05,840 Speaker 4: they're selling cheap stuff to us, and we have virtually 296 00:16:05,920 --> 00:16:09,600 Speaker 4: no tariffs. We can't and we can't sell to them 297 00:16:09,880 --> 00:16:13,520 Speaker 4: because they have a high tariff, right, And what that did? 298 00:16:13,560 --> 00:16:16,560 Speaker 4: Their cheap goods, which went on for twenty five years, 299 00:16:17,800 --> 00:16:23,360 Speaker 4: did great damage to America's heartland manufacturing and automobiles and 300 00:16:23,480 --> 00:16:26,400 Speaker 4: steel and you know, you name it. And the results 301 00:16:26,440 --> 00:16:33,600 Speaker 4: show that, I mean, we lost hundreds of thousands of 302 00:16:33,680 --> 00:16:37,840 Speaker 4: factories closed, we lost jobs. So that had to stop, 303 00:16:38,600 --> 00:16:41,000 Speaker 4: all right. And the fact is also, you know, it's 304 00:16:41,040 --> 00:16:44,680 Speaker 4: not just China. For heaven's sakes. You go around the world. 305 00:16:45,000 --> 00:16:49,000 Speaker 4: You look at the EU high tariffs, and you know 306 00:16:49,040 --> 00:16:53,400 Speaker 4: what Trump calls correctly non tariff barriers, which means regulations 307 00:16:53,760 --> 00:16:56,760 Speaker 4: like they can't buy the European Union won't buy a 308 00:16:56,840 --> 00:16:59,720 Speaker 4: lot of our food because they have all kinds of 309 00:17:00,160 --> 00:17:04,919 Speaker 4: your regulations on food. Okay, so that's a non terra barrier. 310 00:17:05,119 --> 00:17:10,040 Speaker 4: Or for example, right now, our social media companies, our 311 00:17:10,080 --> 00:17:13,520 Speaker 4: faced in our in our techie companies, they're trying to 312 00:17:13,560 --> 00:17:20,440 Speaker 4: put a tax on any internet service companies. Okay, so 313 00:17:20,480 --> 00:17:23,080 Speaker 4: that you know that has to change. It's a it's 314 00:17:23,119 --> 00:17:28,080 Speaker 4: an unequal position, it's not a level playing field, and 315 00:17:28,119 --> 00:17:33,360 Speaker 4: it's done damage to our economy. Trump is exactly right here. Now. 316 00:17:33,359 --> 00:17:36,800 Speaker 4: It's a hard thing to do. I get that, Uh. 317 00:17:36,920 --> 00:17:41,240 Speaker 4: And I think his shock therapy a week ago or 318 00:17:41,280 --> 00:17:46,240 Speaker 4: ten days ago, UH did shocked at financial markets and 319 00:17:46,520 --> 00:17:49,160 Speaker 4: probably shocked a lot of ordinary folks. You know, wake 320 00:17:49,240 --> 00:17:52,800 Speaker 4: up call. The liberal media is trying to kill him 321 00:17:52,840 --> 00:17:56,119 Speaker 4: with it. I'm trying to defend them. All of the 322 00:17:56,160 --> 00:17:58,919 Speaker 4: bunch of people. I think he's doing the right and 323 00:17:58,920 --> 00:18:04,080 Speaker 4: and you know, the most recent point, yesterday, two days ago, 324 00:18:05,200 --> 00:18:09,080 Speaker 4: he declared a ninety day pause on the tariffs that 325 00:18:09,119 --> 00:18:13,359 Speaker 4: we would be charging other countries. He raised those charges, 326 00:18:13,880 --> 00:18:20,640 Speaker 4: but he did it because seventy seventy five countries came 327 00:18:20,720 --> 00:18:25,840 Speaker 4: to him and Scott Bestons, the Treasury Secretary, in Jamison Greer, 328 00:18:26,000 --> 00:18:30,240 Speaker 4: the trade representative, and said, no, we want to do business. 329 00:18:30,520 --> 00:18:32,560 Speaker 4: We don't want to pay these tariffs. We want to 330 00:18:32,600 --> 00:18:35,239 Speaker 4: do business. We want to level the playing field. We 331 00:18:35,280 --> 00:18:37,880 Speaker 4: want to make a deal. All right, And right now 332 00:18:37,920 --> 00:18:41,600 Speaker 4: there's a bunch of very hot deals on the front burner, 333 00:18:44,160 --> 00:18:53,000 Speaker 4: Vietnam and Taiwan and South Korea and India front burnt 334 00:18:53,160 --> 00:18:57,840 Speaker 4: Argentina is another one. Even the European Union talked about 335 00:18:58,640 --> 00:19:02,480 Speaker 4: zero tariffs on all goods. That won't be sufficient because 336 00:19:02,520 --> 00:19:05,080 Speaker 4: of their non tara perrys. But the point is they 337 00:19:05,119 --> 00:19:07,760 Speaker 4: came to us. They didn't go to China. They came 338 00:19:07,800 --> 00:19:12,560 Speaker 4: to us, and so Trump suspended his tariff charges, reciprocal 339 00:19:12,600 --> 00:19:15,960 Speaker 4: tariff charges, and we're gonna make deals. And it's a 340 00:19:16,080 --> 00:19:16,760 Speaker 4: very good thing. 341 00:19:17,600 --> 00:19:18,720 Speaker 2: Not easy to do. 342 00:19:20,080 --> 00:19:22,800 Speaker 4: You know, maybe it could have been handled a little better, 343 00:19:22,960 --> 00:19:26,240 Speaker 4: a little maybe a little more gradual, but I don't 344 00:19:26,240 --> 00:19:29,560 Speaker 4: really feel like second guessing. And Trump's a very good negotiator. 345 00:19:30,320 --> 00:19:33,320 Speaker 4: After that, you know, after that shock and awe, what 346 00:19:33,320 --> 00:19:36,800 Speaker 4: does he call it? Liberation Day? I mean, all these 347 00:19:36,880 --> 00:19:41,240 Speaker 4: countries came to us, all right, they didn't go to China. 348 00:19:41,720 --> 00:19:43,280 Speaker 4: What they want to deal with us? 349 00:19:43,880 --> 00:19:45,760 Speaker 1: Talking to Larry Kudlow here, you can watch them on 350 00:19:45,800 --> 00:19:48,440 Speaker 1: Fox Business. I'll be on with him later this evening 351 00:19:48,520 --> 00:19:52,800 Speaker 1: in the Fox studios. What does a successful trade policy 352 00:19:52,840 --> 00:19:53,919 Speaker 1: with China look like? 353 00:19:54,000 --> 00:19:54,440 Speaker 3: To you? 354 00:19:54,600 --> 00:19:57,359 Speaker 1: Let's pretend you were a mediator. I know you're obviously 355 00:19:57,400 --> 00:19:59,919 Speaker 1: skewed in favor of the United States, but let's pretend 356 00:20:00,480 --> 00:20:03,760 Speaker 1: you were hired as a mediator. You're very knowledgeable economically, 357 00:20:04,200 --> 00:20:06,960 Speaker 1: and your job was to bring a solution to the 358 00:20:07,040 --> 00:20:10,520 Speaker 1: United States and China. What does fair trade policy with 359 00:20:10,640 --> 00:20:11,760 Speaker 1: China actually look like? 360 00:20:11,920 --> 00:20:16,320 Speaker 4: If I were a China mediator, I'd probably resign and 361 00:20:16,359 --> 00:20:20,360 Speaker 4: look for another job. That's what I'd have to do. 362 00:20:21,080 --> 00:20:24,560 Speaker 1: But what does a successful trade package look like in 363 00:20:24,640 --> 00:20:28,199 Speaker 1: terms of if we could finally get a resolution? What 364 00:20:28,240 --> 00:20:29,600 Speaker 1: would it look like? From your person? 365 00:20:29,840 --> 00:20:33,959 Speaker 4: I was on the China trade team, YEP in the 366 00:20:34,000 --> 00:20:38,200 Speaker 4: first term. Okay, I spent two years, all right. Our 367 00:20:38,240 --> 00:20:44,680 Speaker 4: team leader was Robert Lighteheiser Bobler, who, by the way, 368 00:20:44,760 --> 00:20:49,040 Speaker 4: is a genius on this stuff. Steve Maushan then the 369 00:20:49,080 --> 00:20:55,439 Speaker 4: Treasury Secretary. He was handling the financial companies. I was 370 00:20:55,480 --> 00:20:59,760 Speaker 4: any Seed director. Wilbur Ross with Commerce Secretary. Wilber was 371 00:20:59,760 --> 00:21:03,399 Speaker 4: on show last night. He and I handled the commodity section. 372 00:21:03,480 --> 00:21:08,439 Speaker 4: We had a huge We spent almost two years. We 373 00:21:08,480 --> 00:21:13,439 Speaker 4: made a deal was you know, China Trade Deal Phase one, 374 00:21:13,680 --> 00:21:18,680 Speaker 4: and was signed in early January of twenty twenty, and 375 00:21:18,720 --> 00:21:27,240 Speaker 4: it included provisions to stop intellectual property sects, to allow 376 00:21:27,320 --> 00:21:32,720 Speaker 4: American companies to operate in China as American run companies, 377 00:21:34,000 --> 00:21:39,480 Speaker 4: not Chinese run companies, so the FCED technology transfer would 378 00:21:39,480 --> 00:21:42,879 Speaker 4: go away. Anyway, we did this whole deal, and they 379 00:21:42,920 --> 00:21:47,800 Speaker 4: did not implement any of them. And then, of course, 380 00:21:48,040 --> 00:21:53,840 Speaker 4: in January of twenty twenty, China already knew that they 381 00:21:53,880 --> 00:22:00,639 Speaker 4: were stuck with this COVID disease, this COVID virus, and 382 00:22:00,720 --> 00:22:03,560 Speaker 4: they tried to cover it up. And we learned in 383 00:22:03,600 --> 00:22:07,399 Speaker 4: the next there are always rumors, and we learned literally 384 00:22:07,400 --> 00:22:10,679 Speaker 4: in the next couple of weeks in January that China 385 00:22:10,840 --> 00:22:15,920 Speaker 4: was suffering from a countrywide virus, and then, of course 386 00:22:15,960 --> 00:22:19,760 Speaker 4: the rest is history. Now they say they didn't implement 387 00:22:19,800 --> 00:22:23,240 Speaker 4: the deal because of COVID. Okay, but COVID has been 388 00:22:23,280 --> 00:22:26,520 Speaker 4: gone for a couple of years and China has not 389 00:22:26,680 --> 00:22:30,040 Speaker 4: come back to the deal. So I'm saying to you, 390 00:22:31,320 --> 00:22:36,080 Speaker 4: it's always possible that we could go back and work 391 00:22:36,160 --> 00:22:44,480 Speaker 4: through commodities, financial companies, insurance companies, intellectual property sets, force 392 00:22:44,600 --> 00:22:50,520 Speaker 4: transfer of technology, American ownership, lower tariffs, get your tariffs 393 00:22:50,560 --> 00:22:54,280 Speaker 4: down along with all the non tariffayers. It's possible we 394 00:22:54,320 --> 00:22:57,600 Speaker 4: could go back and conduct a China deal, you know, 395 00:22:57,720 --> 00:23:00,760 Speaker 4: Phase two. All right, It's possible. It would look a 396 00:23:00,800 --> 00:23:04,960 Speaker 4: lot like Phase one. They'd have to change their laws, 397 00:23:05,200 --> 00:23:08,080 Speaker 4: which they never did. By the way, part of that 398 00:23:08,119 --> 00:23:14,120 Speaker 4: deal was stop producing the parts for pentanol and other drugs. 399 00:23:14,160 --> 00:23:17,600 Speaker 4: They promised they would do that. In dinner in Blennis 400 00:23:17,640 --> 00:23:20,879 Speaker 4: Aires in Argentina, I was there as a G twenty 401 00:23:20,960 --> 00:23:26,119 Speaker 4: meeting US China. The first question Trump asked she was 402 00:23:26,160 --> 00:23:31,320 Speaker 4: will you stop producing fentanyl? And would mind you put 403 00:23:31,320 --> 00:23:37,159 Speaker 4: a capital punishment on people producing fentanyl? And she without batting, 404 00:23:37,160 --> 00:23:39,639 Speaker 4: and I said, yes, we will do that. And of 405 00:23:39,640 --> 00:23:44,320 Speaker 4: course he lied through his teeth. Right. This was this 406 00:23:44,520 --> 00:23:48,360 Speaker 4: was in I don't know, probably late sometime in late 407 00:23:48,440 --> 00:23:49,480 Speaker 4: twenty nineteen. 408 00:23:49,520 --> 00:23:50,840 Speaker 3: What do you see the nine? 409 00:23:51,000 --> 00:23:54,040 Speaker 1: No, this is all right, all great detail. What do 410 00:23:54,119 --> 00:23:56,920 Speaker 1: you think we know kind of because you know Trump well, 411 00:23:56,920 --> 00:23:59,440 Speaker 1: we kind of have a sense how Trump is responding. 412 00:24:00,040 --> 00:24:03,480 Speaker 1: What do you think Chairman Z's advisors are telling him 413 00:24:03,640 --> 00:24:06,120 Speaker 1: right now in China? How much do you think they 414 00:24:06,160 --> 00:24:09,440 Speaker 1: are panicked about where we are right now? How would 415 00:24:09,480 --> 00:24:15,440 Speaker 1: you assess leverage negotiating ability here vis a the US 416 00:24:15,560 --> 00:24:16,000 Speaker 1: and China. 417 00:24:17,000 --> 00:24:23,200 Speaker 4: Look, the reality in the economy is the United States 418 00:24:23,800 --> 00:24:26,280 Speaker 4: with a tariff of one hundred and forty five percent, 419 00:24:27,040 --> 00:24:31,280 Speaker 4: the United States is no longer a customer of cheap 420 00:24:31,640 --> 00:24:38,399 Speaker 4: China goods. Yep, period bull stop. Okay, that will ruin 421 00:24:38,960 --> 00:24:46,119 Speaker 4: an economy that's still reeling from a real estate collapse 422 00:24:46,480 --> 00:24:49,119 Speaker 4: bust that happened a couple of years ago and they 423 00:24:49,160 --> 00:24:50,240 Speaker 4: still haven't recovering. 424 00:24:50,280 --> 00:24:50,440 Speaker 2: Now. 425 00:24:52,440 --> 00:24:56,040 Speaker 4: The thing about she is he has economic advisors. By 426 00:24:56,040 --> 00:24:58,280 Speaker 4: the way, I knew some of them because we worked well, 427 00:24:58,480 --> 00:25:00,720 Speaker 4: and a couple of them were pretty good reformers on 428 00:25:00,800 --> 00:25:04,400 Speaker 4: my end. But she doesn't listen to them. You talk 429 00:25:04,480 --> 00:25:08,920 Speaker 4: to people as I have, who are still operating Americans 430 00:25:08,960 --> 00:25:13,840 Speaker 4: who are still operating in China, particularly the insurance industry, 431 00:25:14,200 --> 00:25:18,240 Speaker 4: which has a long history in China, American American owns. Okay, 432 00:25:19,240 --> 00:25:23,560 Speaker 4: they will tell you that she's inking is not just 433 00:25:24,080 --> 00:25:26,919 Speaker 4: the head of the Communist Party. He views himself as 434 00:25:27,000 --> 00:25:31,919 Speaker 4: as an emperor. As an emperor. They're running pictures and 435 00:25:31,960 --> 00:25:34,320 Speaker 4: clips of Mau say Tongue right now. I don't know 436 00:25:34,320 --> 00:25:36,640 Speaker 4: if you've seen any of this stuff. One of the 437 00:25:36,680 --> 00:25:41,240 Speaker 4: all time great killers in humanity. She thinks he's emperor, 438 00:25:42,160 --> 00:25:45,080 Speaker 4: all right, and he's running the show, and if you 439 00:25:45,080 --> 00:25:48,840 Speaker 4: don't do what he wants, you're out. And so I 440 00:25:48,880 --> 00:25:52,920 Speaker 4: think it's almost impossible at this point. They may be 441 00:25:53,040 --> 00:25:56,520 Speaker 4: brought to their knees on economic grounds. They still have 442 00:25:56,640 --> 00:26:00,480 Speaker 4: a very strong military. They're pouring money into the military, 443 00:26:00,520 --> 00:26:03,040 Speaker 4: as I'm sure you know you know. They they have 444 00:26:03,240 --> 00:26:09,720 Speaker 4: military exercises circling Taiwan the minute Pete Hegseth left after 445 00:26:09,800 --> 00:26:13,680 Speaker 4: his meetings in Taiwan. So the military side is very difficult, 446 00:26:13,920 --> 00:26:16,920 Speaker 4: and that goes along with the economic side. So I'm 447 00:26:16,920 --> 00:26:19,960 Speaker 4: not optimistic about this. But the point, here's the point, 448 00:26:20,160 --> 00:26:23,399 Speaker 4: we don't need them we don't need them, okay. I 449 00:26:23,480 --> 00:26:25,840 Speaker 4: know there's supply chains that have to be altered. I 450 00:26:25,920 --> 00:26:30,880 Speaker 4: get that. But Vietnam, which is a communist country, has 451 00:26:30,920 --> 00:26:34,200 Speaker 4: become an American ally and they want to make the 452 00:26:34,280 --> 00:26:38,720 Speaker 4: deal and they can produce the same goods that China did. 453 00:26:39,440 --> 00:26:44,159 Speaker 4: Malaysia the same story, Cambodia the same story, India the 454 00:26:44,240 --> 00:26:49,560 Speaker 4: same story, Korea the same story, Taiwan the same story. 455 00:26:50,600 --> 00:26:54,200 Speaker 4: It's not like transshipping anymore where China would use another 456 00:26:54,280 --> 00:26:57,600 Speaker 4: country to get around to terra. They're doing it themselves now. 457 00:26:57,800 --> 00:27:00,960 Speaker 4: They've grown up, their economies have grown up. So I 458 00:27:00,960 --> 00:27:03,639 Speaker 4: don't think we need them. And I think that she 459 00:27:03,800 --> 00:27:07,439 Speaker 4: has gotten boxed in. Trump completely out boxed him on this. 460 00:27:08,040 --> 00:27:12,440 Speaker 4: China has nowhere to turn now, I'm reading in the papers, 461 00:27:12,280 --> 00:27:15,520 Speaker 4: and she is going to Europe, okay, to try to 462 00:27:15,520 --> 00:27:18,400 Speaker 4: bring them on his side. They won't because they suffered 463 00:27:18,440 --> 00:27:25,000 Speaker 4: the same problem. China sends cheap goods, cheap cars, undercutting everybody. 464 00:27:25,119 --> 00:27:28,400 Speaker 4: Mercedes been into Europe and Europe is sick of it. 465 00:27:28,520 --> 00:27:32,800 Speaker 4: And Europe is talking about tariffs on China. Even Mexico. 466 00:27:32,840 --> 00:27:37,600 Speaker 4: All right, China us Mexico to transship well fentanyl for 467 00:27:37,680 --> 00:27:42,000 Speaker 4: one thing, but also automobile parts and so forth. Mexico 468 00:27:42,119 --> 00:27:46,280 Speaker 4: is slapping tariffs on China, so China can do and 469 00:27:46,400 --> 00:27:48,320 Speaker 4: go wherever they want, but right now they're at the 470 00:27:48,359 --> 00:27:52,320 Speaker 4: short end of the stick. Trump knows this right, and 471 00:27:52,400 --> 00:27:56,440 Speaker 4: he will cheap tightening the news around China. You watch, 472 00:27:56,640 --> 00:27:57,400 Speaker 4: you wait and see.