COURT.
LOU: AS WE ARE USED TO.
THE YIELD CURVE INVERTED AGAIN,
BUT INVESTORS NOT EXCITED AT
ALL.
THE DOW UP 258 POINTS.
THE NASDAQ UP 30.
TWO WEEKS AGO, MUCH IF NOT MOST
OF OF THE LEFTIST MEDIA AND
BUSINESS PRESS PANICKING OVER
THE INVERSION OF THE YIELD CURVE
AND USE IT TO FUEL THEIR
NARRATIVE OF AN IMPENDING
RECESSION.
OFTEN FORGETTING TO KNOW IT
USUALLY TAKES TWO YEARS BEFORE A
RECESSION SETS IN AFTER AN
INVERSION.
JOINING US TONIGHT PETER
NAVARRO, STARNT TO THE
PRESIDENT, DIRECTOR OF TRADE AND
TRAIL POLICY, DIRECTOR OF THE
WHITE HOUSE NATIONAL TRADE
COUNCIL.
LET'S START WITH THE YIELD CURVE
INVERTED AGAIN.
TO A GREATER DEGREE THAN TWO
WEEKS AGO.
AND INVESTORS DISMISSING IT.
I READ THAT AS A PRESIDENT WHO
HAS GREATER CREDIBILITY THAN THE
BUSINESS PRESS.
THEIR HAIR WAS ON FIRE TWO
WE KNOW WE HAVE THE JAY POWELL
PROBLEM WHERE THEY ARE NOT
LOWERING RATES FAST ENOUGH.
LET ME GIVE YOU MY 60 SECONDS.
>> CAN YOU MAKE IT 30, WE ARE
ALREADY A MINUTE AND.
>> TRUMP FOR PILLARS, TAX-CUT
DEREGULATION, TOUGH TRADE
REFORM.
THE WAY WE GET THIS, FROM 2% TO
3% GROWTH, FED CREDITS RATES,
EUROPEAN CENTRAL KIT CUT RATES.
AND WE GET CHINA ENGAGING IN THE
STIMULUS.
IT IS ALL GOOD.
THAT IS THE KEY AND FINALLY ALL
THE ACING ON THE CAKE.
>> USMC I, THAT SOUND A LOT LIKE
A TRADE AGREEMENT WITH MEXICO
AND CANADA.
>> WHAT IS INTERESTING, I KNOW
YOU'RE ON A ROLL AND A HATE TO
INTERRUPT, BUT WE NEED TO
UNDERSTAND THE UNDERLYING
MOTIVATION TODAY AT LEAST
REPORTED BY THE BUSINESS PRESS.
THAT IS OPTIMISM ABOUT THE CHINA
U.S. TRADE AGREEMENT, IS IT
MISPLACED, THE OPTIMISM, OR IS
IT WELL-PLACED.
>> I THINK WHAT THE MARKET WAS
RESPONDING TO WAS THE REALITY OF
ALL THE GOOD THINGS HAPPENING IN
TERMS --
>> LET ME TRY THIS AGAIN, I KNOW
YOU WOULD LOVE TO FOLLOW --
>> I WOULD SAY IS OPTIMISM I'M
NOT SURE WHETHER IT'S MISPLACED,
YOU KNOW ALL NEGOTIATIONS TAKE
PLACE BEHIND CLOSED DOORS --
>> WE WON'T BUY THAT.
SO WHAT IS YOUR PRECISE
QUESTION?
>> IS SUCH OPTIMISM MISPLACED OR
WELL-PLACED CUSTOMER
WELL-PLACED?CUSTOMER
>> WE HAVE SERIOUS STRUCTURAL
PROBLEMS BUT THE CHINESE ARE
COMING HERE IN SEPTEMBER TO TALK
ABOUT THEM.
LET'S SEE IF WE CAN WORK THROUGH
THAT.
I TELL YOU IS UNLIKELY THAT
ANYTHING QUICK WILL HAPPEN GIVEN
THE STRUCTURAL BASIS OF THE
PROBLEM.
YOU KNOW WHAT THEY ARE, STEALING
OUR STUFF AND KILLING AMERICANS
WITH FENTANYL AND EVERY THING IN
BETWEEN.
BUT FOR ME, LOOKING AT THE
ECONOMY.
LIZ: THERE NOT A NICE BUNCH ARE
THEY?
>> I THINK THEY HAVE A
REPUTATION GOING BACK TO 1949
AND NEVER FOR FILLING ANY OF THE
COMMITMENTS AND THEN GOING BACK
TO 2001 AND BREAKING EVERY RULE
IN THE WTO BOOK AND TAKE OVER
70000 FACTORIES AND 5 MILLION
MAIN FACTORY JOBS.
YOU THINK AMERICA HAS FINALLY
REALIZED THAT'S EXACTLY WHO
CHINA IS IN SUPPORTING PRESIDENT
TRUMP AND TAKING ACTION.
LOU: I DON'T THINK THERE'S ANY
DOUBT ABOUT THAT SUPPORT AND IT
IS UNDERSTATED POWER IN THE
LEFT-WING 80
LEFT-WING M0
LEFT-WING MEDIA.
I DON'T HEAR A LOT OF BLUBBER
FROM WALL STREET ANYMORE OR THE
CHAMBER OF HORRORS OR COMMERCE
OR THE BUSINESS ROUNDTABLE ABOUT
FREE TRADE.
THE PRESIDENT SEEMS TO HAVE MADE
IT VERY CLEAR THAT THERE HAS
BEEN NOTHING FREE ABOUT FREE
TRADE FOR THE LAST FOUR DECADES
IN THE BALANCE TRADE IS THE
FUTURE AND AS A LEADER OF THE
FREE WORLD, HE IS PERSUADING IN
THE REST OF WESTERN CIVILIZATION
CERTAINLY THAT THIS IS A NEW
DAWN.
WHAT DO YOU THINK?
>> ITS RECIPROCAL TRADE AND
EUROPE IS GETTING ON BOARD AND I
THINK EUROPE VIEWS CHINA JUST AS
WE DO, AS A COUNTRY THAT IS
VIOLATING ALL THE ROLES AND
THREATENING THE INTERNATIONAL
ABILITY TO HAVE A DECENT TRADING
SYSTEM.
SO LET'S SEE WHAT HAPPENS.
IN THE MEANTIME, IN THE NEXT
MONTH OR TWO, WE NEED THE FED TO
DO ITS JOB, TO CUT RATES,
EUROPEAN CENTRAL BANK WILL HELP
US AS WELL.
LOU: LET ME MAKE A FORECAST,
THAT IS THE FED WILL CUT RATES,
JEROME POWELL HAS HAD -- HE IS
BEEN TUTORED, HE IS MORE
EXPERIENCED BY EVENTS.
THERE IS NO WAY IN THE WORLD HE
WOULD NOT CUT RATES.
AND I WILL BET YOU ANY AMOUNT OF
MONEY ON THAT ONE.
>> LET'S MAKE SURE HE IS PLAYING
CHESS NOT CHECKERS.
LOU: I CANNOT MAKE SURE OF
ANYTHING AND IF YOU'RE NOT GONNA
TAKE MY BET I GOT A GO.
>> WILL BE PUT MONEY DOWN ON IT.