FALLING 278 POINTS ON THE DAY.
THE PRESIDENT NOTING CHINA'S
MOVE MEANS THEY ARE BEARING THE
BRUNT OF THE BURDENS OF THE
TARIFFS.
THE PRESIDENT TWEETED THIS.
BASED ON HISTORIC CURRENCY
MANIPULATION, IT'S CLEAR
AMERICANS ARE NOT PAYING FOR THE
TARIFFS.
THE UNITED STATES IS TAKING IN
TENS OF BILLIONS OF DOLLARS.
CHAIN A HAS ALWAYS HURT OR JOBS,
DEPRESSING OUR WORKERS WAGES AND
HARMING OUR FARMERS' PRICES.
NOT ANY MORE.
STEVEN MNUCHIN FINALLY LISTENING
TO PRESIDENT TRUMP DESIGNATING
CHINA TO BE A CURRENCY
MANIPULATOR.
OUR FIRST GET TONIGHT SINCE
PRESIDENT TRUMP'S TARIFFS ARE
NOT AFFECTING CONSUMERS, AND
CHINA IS PAYING THE BURDENR
BURDEN OF THE TARIFFS.
JOINING US TONIGHT, PETER
NAVARRO.
THE DIRECTOR OF THE WHITE HOUSE
NATIONAL TRADE COUNCIL.
WE WATCHED WALL STREET GIN UP A
LITTLE BUSINESS AS WE WATCHED
THE DOW POST ITS WORST
PERFORMANCE OF THE YEAR.
WALL STREET TAKING A BEATING AND
INVESTORS AS WELL AND PUTTING IT
STRAIGHT ON TENSIONS BETWEEN THE
UNITED STATES AND AN ESCALATING
TRADE WAR.
DEW AGREE?
>> A MASSIVE OVERREACTION.
WE HAVE A SOLID ECONOMY, THE
STOCK MARKET SHOULD BE A LEADING
INDICATOR OF THAT.
YOU GET THE DAY TRADERS MOVING,
AND GOOD PEOPLE LOST MONEY TODAY
BECAUSE THEY GOT SHAKEN OUT OF
THE MARKET.
BUT THE FUNDAMENTALS ARE SOLID
AS A ROCK.
THE BIG NEWS ON THE CURRENCY
FRONT IS IMPORTANT TO THE
AMERICAN PEOPLE.
WHEN CHINA DEVALUES THEIR
CURRENCY BY 10% --
LOU: WE'LL GET INTO THAT.
WE WERE TALKING ABOUT ECONOMICS
AND POLICY.
LET'S TURN TO WHAT WE HAVE KNOWN
FOR SOME TIME.
THAT IS THAT CHINA MANIPULATES
ITS CURRENCY.
THE PREVIOUS ADMINISTRATIONS DID
NOT IN ANY WAY EVEN THOUGH URGED
TO, IT WAS OBVIOUS CHINA IS
MANIPULATING THEIR CURRENCY.
THEY CHOSE NOT TO.
THE PRESIDENT HAS TAKEN THE STEP
AT LONG LAST.
WHAT SPECIAL CONSEQUENCES WILL
THERE BE FOR CHINA AS A RESULT
OF MAKING THAT DESIGNATION?
>> THE TREASURY SECRETARY UNDER
TWO PIECES OF LEGISLATION, THE
2015 TRADE ACT GIVES THE
TREASURY SECRETARY PROUD POWERS
TO TAKE COUNTERVAILING MATTERS.
THE INTERNATIONAL MONETARY FUND
MONITORS CURRENCY UNDER
VALUATIONS AND START THE PROCESS
OF CROCKING DOWN ON THIS.
LOU: WHEN YOU SAY CRACKING DOWN,
WHAT DOES CRACKING DO YOU MEAN?
THERE IS NOT A SUBSTANTIVE BASIS
FOR AN AGREEMENT.
WHAT ELSE?
>> COUNTERVAILING TOOLS THE
TREASURY CAN USE TO OFFSET THE
INTERVENTION OF THE CHINESE.
WHAT THE CHINESE DO, THEY BUY
DOLLARS AND DO WHAT'S CALLED
STERILIZATION OF THE BOND
MARKET.
LOU: I'M TOO FAR INTO THE WEED,
YOU MIGHT LOSE ME.
THE IDEA THAT THE CHINESE HAVE
POSTED A NUMBER OF COMMENTS TO
THE BUSINESS PRESS TALKING ABOUT
HOW THIS IS A VERY WIG
RETALIATION, STOP D A VERY BIG
RETAGS LAYING, STOPPING EXPORTS
IN THEIR TRACKS AND FURTHER
DEVALUING THE YUAN GOING BEYOND
THE SUPPORT LEVEL 7-1 IN THE
DOLLAR.
IT SEEMS TO BE TO BE RELATIVELY
TAME STUFF.
>> IT IS, LOU.
I THINK IT'S IMPORTANT FOR
PEOPLE WATCHING YOUR SHOW TO
UNDERSTAND THAT BOB LIGHTHIZER
IS STILL ENGAGED WITH THE
CHINESE.
THERE WILL BE A LOT OF SOUND AND
FURY OUT THERE.
BUT CHINA NEEDS A DEAL AND WE'LL
BE TALKING WITH THEM.
EVEN THOUGH THIS IS IMPORTANT IN
THE U.S.-CHINA RELATION --
LOU: THIS HAS NEVER BEEN THE
ISSUE.
YOU GUIDE HAVE WANTED TO TALK.
PARTICULARLY THE TREASURY
SECRETARY HAS BEEN MAKE IT VERY
CLEAR HE WANTS A DEAL IN
COUNSELING THE PRESIDENT
ACCORDINGLY.
THE REALITY IS THERE IS NO DEAL.
THE PRESIDENT MADE IT CLEAR THEY
ARE STILL FAR APART.
BUT WE ARE NOT SEEING THE
CHINESE MAKE A LOT OF SENSE
HERE.
AND AS THE PRESIDENT PUTS IT, I
THINK HE'S EXACTLY RIGHT.
HE SAYS I CAN TAKE A DEAL THAT
GOOD FOR US.
WHAT'S IT GOING TO TAKE FOR THE
CHINESE TO AWAKE BE TO THE FACT
THAT THEIR ECONOMY IS CREATIVE.
>> THE PRESIDENT IS NOT GOING TO
PUT UP WITH THEM FAILING THEIR
COMMITMENTS LIKE TING THE
FENTANYL.
LOU: WHY WOULD THE CHINESE -- AS
I AM LOOKING AT THE NUMBERS, AND
THOSE ARE COOKED NUMBERS THAT
THEY HAVE BEEN PUBLISHING TO THE
WORLD FOR 20 YEARS, WHAT SHALL
WE EXPECT IN.
>> CHIEBA WANTS ACCESS TO OUR
PIGGY BANK.
LOU: THEY STEAL IT.
THEY STOLE HUNDREDS OF MILLIONS
OF DOLLARS.
>> THE PRESIDENT IS STANDING UP
TO CHINA SAYING YOU ARE NOT
DOING THAT ANYMORE UNLESS YOU
CHANGE THE STRUCTURE OF YOUR
ECONOMY AND STOP RIPPING US OFF.
THAT'S THEIR CHOICE.
WE'LL WORK WITH THEM BUT IT'S
ULTIMATELY THEIR CHOICE.
IF THEY KEEP TRYING TO
RELATIONSHIP US OFF.
PRESIDENT DONALD J. TRUMP WILL
NOT STAND FOR THAT.
AND SHAME ON THE PREVIOUS
PRESIDENTS WHO LET US LOSE
MANUFACTURING JOBS.
LOU: SHAME ON THE CHAMBER OF
COMMERCE.
>> THEY ARE WRINGING THEIR HAND
RIGHT NOW.
LOU: THIS MARKET TODAY IN MY
OPINION IS A REACTION TO THAT
DISSIDENCE IN THE BODY POLITIC
HERE.
WE ARE WATCHING THE TITANS OF
WALL TREAT TRY TO TALK THIS
PRESIDENT INTO A DEAL, ANY DEAL,
THE BUSINESS PRESS IN LARGE
MEASURE IS ALSO TOGETHER SAME
THING.
SAYING THERE IS DISCUSSION THAT
THEY WILL TAKE ANY KIND OF DEAL.
IT'S MIND BOGGLING TO ME TO SEE
WHAT YOU ONCE REFERRED TO AS
UNREGISTERED FOREIGN AGENTS OF
CHINA CONTINUING TO CROW AND TO
WEEDLE AND TO TRY TO DIFFICULT
SWAWD THIS PRESIDENT THAT NO
PRESIDENT BEFORE HIM HAS HAD THE
GUTS TO TAKE.
>> FINALLY ON CAPITOL HILL,
THERE IS SOMETHING THEY CAN
AGREE ON.
BIPARTISAN SUPPORT FOR THE CHINA
TARIFFS AND CHINA POLICY.
THE AMERICAN PUBLIC HAS COME TO
UNDERSTAND BECAUSE OF THE
PRESIDENT'S LEADERSHIP WHAT THE
STAKES ARE, AND EXACTLY WHAT
CHINA IS DOING TO US IN TERMS OF
RIPPING US OFF.
THAT'S THE COUNTERVAILING FORCE
TO THESE WALL STREET LOBBYIST
SWAMP CREATURES THAT WANT US TO
DIFFERENT UP AND LET CHINA HAVE
THEIR WAY WITH US.
THE PRESIDENT IS LEADING
STRONGLY ON THIS.
WE HAVE THE MARKET CHINA WANTS
ACCESS TO.
THEY WON'T GET THAT ACCESS
UNLESS THEY CLEAN UP THEIR
STRUCTURAL ACT.
>> THERE IS A STRUCTURAL ELEMENT
HERE, TOO.
THEY ARE MAKING THEIR PRESENCE
KNOWN IN THE ODDEST WAYS.
YESTERDAY YOU WERE ON FOX.
A GRAPHIC CAME UP FROM GOLDMAN
SACHS.
CAN WE PUT THAT UP?
IT PURPORTS TO SHOW THAT TARIFFS
ARE HAVING AN INFLATION AIR YEA
IMPACT ON PRICES.
THERE ARE MANY THINGS I FIND
INTERESTING ABOUT THIS.
GOLDMAN SACHS HAS BLOWN UP WHAT
LOOKS TO ME TO BE A 3%, 4%
DIRCHTION
DIFFHTION
DIFFERION
DIFFERENN
DIFFERENTIAL.
IT MAKES IT LOOK LIKE A MOUNTAIN
INSTEAD OF 3 POINTS.
WHAT DO YOU MAKE OF GOLDMAN
SACHS AND ITS YOU BE INFLUENCE
ON THIS DISCUSSION WITH GRAPHICS
LIKE THAT.
>> CHRIS WALLACE INSISTED THAT
GRAPH WAS FROM THE TRUMP LABOR
DEPARTMENT WHEN IT WAS FROM
GOLDMAN SACHS, THE MARK TWAIN
THING.
CHINA IS BEARING THE ENTIRE
BURDEN OF THESE TARIFFS THROUGH
CURRENCY MANIPULATION AND
THROUGH SLASHING PRICES.
IF YOU LOOK AT I NATION RATES
FROM 2018-2019, THEY ARE DOWN.
GOLDMAN SACHS, THEY ARE THE
COMMANDER-IN-CHIEF ON WALL
STREET OF OFFSHORING.
FULL STOP.
LOU: AS I RECALL, THE TARIFFS
WERE STAGED AND DIDN'T GONE INTO
EFFECT ON $200 BILLION IN
TARIFFS FOR ALMOST A YEAR.
SEPTEMBER IT'S GOING TO BE
APPLIED.
AM I RIGHT ABOUT THAT?
I AM JUST STRUGGLING TO
UNDERSTAND HOW A $20 MILLION
ECONOMY, ITS PRICE INDEX -- THAT
ITS PRICE INDEX COULD BE
INFLUENCED BY 4 POINTS BASED ON
WHAT WOULD BE BY MY KRALINGS
ABOUT $25 -- BY MY CALCULATION,
$25 BILLION ADDED TO THE RETAIL
LEVEL.
CAN YOU EXPLAIN THAT TO ME?
>> NO, I CAN'T.
THEY LOADED THE DICE.
CHINA -- THE.
JUAN:
-AN:
--N:
-- THE YU TAX N WASUNDER VALUES
-- THE YU TAX N WASUNDER VALUEB
-- THE YU TAX N WASUNDER VALUEY
-- THE YU TAX N WASUNDER VALUE1
-- THE YU TAX N WASUNDER VALUE%
-- THE YU TAX N WASUNDER VALUE.
HOW COULD THERE BE PRICE EFFECTS
DURING THAT PERIOD.
LOU: THOSE FOLKS OVER AT GOLDMAN
SACHS, I SEE HOW THEY DO VERY
WELL.
THEY ARE GOOD WITH THAT PENCIL.
>> THEY MAKE A LOT OF MONEY OFF
OFFSHORING OUR JOBS.
LOU: I THINK THAT'S WHAT'S
STAKING IN THE CRAW OF THE
MASTERS OF THE UNIVERSE AND THEY
BETTER GET USED TO IT.
THEY MUST FOR SOME REASON THINK
THEY HAVE SOMETHING BAKED INTO
THIS PARTICULAR RACE.
I HOPE THAT THEY ARE -- WELL, I
THINK THEY PLAY IT STRAIGHT FROM