THEY ARE NOT ASKING ME ABOUT
IMPEACHMENT.
NEIL: FUNNY WAY OF SHOWING IT.
THE DOW FLIRTING BELIEVE IT OR
NOT, TWO MAJOR TRADE AGREEMENTS
AND BLACK STONE CEO STEVE, THIS
IS WHAT VOTERS AND INVESTORS
CARE ABOUT.
>> BACK IN JULY I DID PREDICT
30,000 ON THE DOW IF USMCA GOT
PASSED AND WE GOT LOWER INTEREST
RATES SO WE ARE GETTING THERE.
NEIL: NOW YOU ARE TALKING ABOUT
32,000.
>> BY THE END OF THE YEAR WE
SHOULD BE WELL OVER 32,000 BUT
MORE IMPORTANTLY WE ARE GOING TO
BE GROWING, I THINK, CLOSER TO
3% REAL GDP AND 2% AND WE WILL
SEE WAGES CONTINUE TO RISE
PARTICULARLY DISPROPORTIONALLY
FOR THE MEN AND WOMEN OF THIS
COUNTRY WHO WORK WITH THEIR
HANDS WHICH IS WHAT PRESIDENT
TRUMP FOCUSES ON IN THIS GREAT
MANUFACTURING ECONOMY.
NEIL: YOU KNOW, WHEN YOU TALK
ABOUT THAT KIND OF GROWTH WHICH
IS ABOVE THE CONSENSUS WHICH THE
CONSENSUS HAS BEEN VERY WRONG,
YOU MIGHT AS WELL HAVE AT IT, A
LOT DEPENDS ON CHINESE MAKING
GOOD ON COMMITMENTS, HOW DO YOU
POLICE THAT, HOW DO YOU MAKE
SURE THAT THEY DELIVER THE GOODS
AND BUY GOODS FROM US?
>> THAT'S THE QUESTION, NEIL,
GLAD YOU ASK IT, TWO ASPECTS OF
THIS, THERE'S ENFORCEMENT AND
THERE'S MONITORING OF THE
BEHAVIOR.
LET'S TALK ABOUT ENFORCEMENT, WE
HAVE THE MOST IRON-CLAD
ENFORCEMENT MECHANISM EVER PUT
IN TRADE AGREEMENT, THERE'S A
90-DAY CLOCK, IF THERE'S A
PROBLEM IT COMES TO LIGHTHIZER,
AT THE END OF 90 DAYS IF WE, WE
THE AMERICAN SIDE IS NOT
SATISFIED WITH THE RESULT, WE
GET TO ADOPT PROPORTIONATE
MEASURES WHICH IN SOME CASES
WOULD BE TARIFFS, THERE'S NEVER
BEEN ANYTHING LIKE THAT IN THE
TRADE DEAL, IT'S IRON CLAD, THE
PRESIDENT HAS MADE THAT CLEAR
IT'S IRON CLAD, HERE IS THE
OTHER PART THAT'S REALLY
INTERESTING, THE PHASE 1 DEAL
HAS INTELLECTUAL PROPERTY THEFT
PROVISIONS IN IT AND THERE'S A
WHOLE SECTION ON COUNTERFEETING
WHICH
-- COUNTERFEITING, CHINA IS THE
BIGGEST COUNTERFEITER IN THE
WORLD BY A LARGE MARGIN AND WHAT
WE STARTED TO DO AND WHAT I LOVE
ABOUT THE PRESIDENT, MONTHS AND
MONTHS AGO, WE PUT INTO PLACE
WITH CUSTOMS AND BORDER
PROTECTION OPERATION MEGA FLEX
ON A MONTHLY BASIS WE ARE
OPENING THOUSANDS AN THOUSANDS
OF PACKAGES ON CHINA, LOOKING
UNDER THE HOOD, WHAT WE ARE
FINDING THE SURPRISINGLY HIGH
RATE OF COUNTERFEIT AND GOODS
COMING IN AND CONTRABAND, IT'S
WELL OVER 10%, A MILLION
PACKAGES A DAY COMING FROM CHINA
AND OVER 10% OF THOSE ARE
CONTRABAND, ABOUT HALF OF IT IS
COUNTERFEIT, LOUIS VUITTON
PURSES, STUFF LIKE THAT, FAKE
PRESCRIPTION DRUGS, THE OTHER
THINGS CONTROLLED SUBSTANCES,
THINGS LIKE FENTANYL THAT CAN
FLAT-OUT KILL YOU, WE ARE
BENCHMARKING NOW EVERY MONTH AND
IN THE MONITORING GAME IF THAT'S
NOT GOING DOWN, THEN THE
ENFORCEMENT COMES INTO PLAY.
NEIL: YOU KNOW PART OF IT
INVOLVES NOT CALLING CHINA A
CURRENCY MANIPULATOR.
>> IT WAS NOT, BY THE WAY.
NEIL: DO YOU THINK THAT IN THE
PAST THEY HAVE RIGGED THEIR
CURRENCY TO GET WHAT THEY
WANTED?
[LAUGHTER]
>> THERE'S NO QUESTION FROM
ABOUT 2003 TO 2014 THEY WERE THE
WORST CURRENCY MANIPULATORS IN
THE WORLD, THEY TOOK A
TREMENDOUS BITE OUT AMERICA.
THAT'S AN INTERESTING DEBATE
BECAUSE WHEN WE PUT THE TARIFFS
IN, THEIR CURRENCY PROCEEDED TO
GO DOWN BY WELL OVER 10%, THE
GOOD NEWS WAS THAT THE AMERICAN
CONSUME DIDN'T HAVE TO BEAR ANY
OF THE BURDEN OF THE TARIFFS
BECAUSE CHINA ABSORBS THEM
THROUGH THE CURRENCY, WE ARE
GOING TO WATCH THEM REALLY
CAREFULLY, NEIL, IF YOU LOOK AT
IT PRAGMATICALLY UNTIL YOU SEE
THAT YOU WANT TO GO BELOW 7
AGAIN TO THE DOLLAR, THERE'S
EVIDENCE THERE THAT SUGGESTS
THAT THEY'RE USING THAT AS A
CRUTCH BUT THAT'S TREASURY
SECRETARY'S LANE AND WE EXPECT
HIM TO LOOK AT THAT REALLY
CAREFULLY ON A DAILY BASIS.
NEIL: YOU'RE READY TO DO THE
SAME WITH THE EUROPEANS AS YOU
ENTER INTO TALKS WITH THEM?
>> WHAT'S INTERESTING, NEIL
N2019 WHEN WE GET FINAL COUNT ON
GDP GROWTH, YOU WILL FIND THAT
WE LOST A FULL PERCENTAGE POINT
OF GROWTH TO THE FEDERAL RESERVE
RAISING RATES TOO FAR TOO FAST
AND LOWERING THEM TOO SLOWLY,
EUROPE CAME INTO PLAY BECAUSE
THEY WERE LOW%ING THEIR --
LOWERING THEIR RATES AND THESE
ARE COMPLEX PIECES ON THE CHESS