TWO DEAL AT SOME POINT DOWN THE
ROAD.
>> THANK YOU, GARRETT.
IT'S BEEN A GREAT YEAR FOR THE
U.S. ECONOMY AND THE STOCK
MARKET.
SO WHAT'S IN STORE FOR 2020?
MY NEXT GUEST IS PRETTY
OPTIMISTIC AND HIS TRACK RECORD
IS PRETTY GOOD.
WHITE HOUSE TRADE ADVISOR PETER
NAVARRO JOINING ME FROM THE
WHITE HOUSE.
GOOD TO SEE YOU, HAPPY NEW YEAR,
MY FRIEND.
>> WHAT A GREAT DAY IN THE
SWAMP, IT FEELS LIKE SPRING, A
GREAT YEAR AHEAD.
DAVID: FEELS GREAT IN NEW YORK
AS WELL.
JUST LAST AUGUST, AS GREAT AS
THINGS APPEAR IN THE ECONOMY,
WITH THE STOCK MARKET, ET
CETERA, I SAW AN INTERVIEW THAT
YOU DID WITH ABC AND YOU HAD TO
TALK MARTHA RADITZ OFF A CLIFF
AND IT WAS LOOMING AND TURNS OUT
YOU WERE RIGHT.
WHAT ARE YOUR PREDICTIONS FOR
NEXT YEAR?
>> THE FAKE NEWS AND THE LEFT
WING COULDN'T WAIT FOR THAT
RECESSION.
DAVID: NEVER HAPPENED.
>> FOR A GREAT ECONOMY.
WHAT I'VE GOT FOR YOU, DAVID,
PRETTY CLEAR.
WE'RE GOING TO GET REALLY GDP
GROWTH, ROBUST.
WE'RE GOING TO SEE DOW 32,000 BY
THE END OF THE YEAR AND WE'RE
GOING TO BREAK 30,000 FAIRLY
SOON.
I PREDICTED THAT SOME MONTHS
AGO.
IF, IF WE GOT PASSAGE OF USMCA
AND WE GOT THE FED TO LOWER
THEIR INTEREST RATES, BOTH OF
THOSE THINGS ARE IN PLACE.
BUT THE BIGGER FORECAST HERE,
DAVID, I'M BASING THAT--
I THINK YOU REMEMBER, I USED TO
DO THIS IN MY OTHER LIFE AS A
MACRO FORECASTER.
YOU'VE GOT TO LOOK AT THE FOUR
DRIVERS OF THE ECONOMY AND THE
GDP ENGINE AND RIGHT NOW THEY'RE
HITTING ON ALL CYLINDERS.
YOU START WITH THE CONSUMER.
THE CONSUMER, BECAUSE
UNEMPLOYMENT IS SO LOW, WAGES
ARE RISING, OPTIMISM IS HIGH.
AND THIS CONSUMER IS GOING TO BE
THE ANCHOR OF THE ECONOMY IN
2020, SO THAT'S NUMBER ONE.
NUMBER TWO, ON THE TRADE FRONT,
WE'VE GOT FIVE TRADE DEALS NOW
IN PLACE.
FIVE TRADE DEALS COVERING TRADE,
WELL MORE THAN HALF OF WHAT WE
TRADE IN THE INTERNATIONAL
ARENA.
JAPAN, SOUTH KOREA, CHINA,
CANADA AND MEXICO, SO THAT'S
GOING TO BE A BOON FOR OUR
EXPORTS AND THEN THE SNEAKY
LITTLE THING, I'M TELLING YOU,
DAVID, THIS IS LIKE -- THIS
SEALED THE DEAL FOR A GREAT
2020, WHEN CONGRESS PASSED THE
NDAA, THE NATIONAL DEFENSE
AUTHORIZATION ACT COUPLED WITH
THE APPROPRIATIONS BILL AND
BASICALLY GOT GOVERNMENT IS
GOING TO BE ONE OF THE ENGINES
AND DRIVERS OF GROWTH,
PARTICULARLY IN SOMETHING THAT I
WORK ON A LOT, THE DEFENSE
INDUSTRIAL BASE, AND THEN
INVESTMENT, WHICH IS THE FORTH
PART OF THE PUZZLE HERE, NOW
THAT WE HAVE ALL OF THESE TRADE
DEALS IN PLACE AND THIS ECONOMY
IS BOOMING, NOW THAT THE
AMERICAN ECONOMY IS BY FAR THE
BEST PLACE TO BE, INVESTMENT IS
GOING TO BOOM.
DAVID: TALK SPECIFICALLY.
>> I'M LOOKING AT A GREAT YEAR?
TALK SPECIFICALLY ABOUT THE
MEXICAN CANADA TRADE DEAL, USMCA
AND HOW IMPORTANT IT IS.
NOT EVERYBODY IS DOING GREAT IN
THIS ECONOMY.
THERE ARE SOME FARMERS, SOME
MANUFACTURERS, WHO ARE HAVING
TROUBLE BECAUSE OF THE TARIFFS
AND THEY WERE -- THEY NOW ARE
LOOKING TO THE MEXICAN-CANADA
TRADE DEAL AS HELPING THEM
INCREASE THEIR PURCHASES, RIGHT,
AND THEIR SALES?
>> WELL, IT'S ALL OF THE TRADE
DEALS PRESIDENT TRUMP HAS
NEGOTIATED FOR AND THE FARMERS
ARE GOING TO LOVE EVERY ONE OF
THEM.
YOU'VE GOT THE JAPAN DEAL, DON'T
FORGET ABOUT THAT ONE, THAT $7
BILLION IN NEW TRADE IN
AGRICULTURAL GOODS.
YOU'VE GOT THE SOUTH KOREAN
DEAL.
CANADA AND MEXICO ARE REALLY
IMPORTANT, BOTH FARMERS AND OUR
AUTO INDUSTRY THAT ARE GOING TO
BENEFIT.
THE CHINA DEAL, WE'RE GOING TO
HAVE--
CHINA'S PLEDGED TO BUY 200
BILLION DOLLARS MORE ABOVE THE
2017 BASELINE OVER THE NEXT TWO
YEARS AND ABOUT A FOURTH OF THAT
IS AGRICULTURAL PRODUCTS SO
YOU'RE LOOKING AT ROUGHLY THE
DOUBLE AMOUNT OF PURCHASES OF
2017.
DAVID: LET ME ASK YOU ABOUT THE
CHINA TRADE DEAL.
BACK IN MAY WE THOUGHT WE HAD A
DEAL WITH THE CHINESE.
THEY BROUGHT IT BACK TO BEIJING
AND THE FOLKS, THE POLLIT BUREAU
RIPPED IT UP, SAID NO GOOD.
>> NO, WE'RE ON TRACK.
THE ONLY THING HOLDING THINGS UP
IS BASICALLY THE CHINESE
TRANSLATION OF THE 86-PAGE
ENGLISH VERSION OF THE DEAL.
AS SOON AS THAT'S DONE, IT WILL
BE RELEASED AND THERE WILL BE A
SIGNING, BUT LET ME SAY THIS
GENTLY BECAUSE I DON'T WANT TO
BE CRITICAL, BUT THE REPORTING
JUST BEFORE I GOT ON, I WAS
LISTENING, WAS WRONG BECAUSE IT
SAID THAT THIS PHASE ONE DEAL
DIDN'T COVER TOUGH ISSUES LIKE
INTELLECTUAL PROPERTY THEFT AND
CURRENCY.
IN FACT, LET ME JUST WALK YOU
THROUGH WHAT--
>> WE ONLY HAVE BEEN 30 SECONDS.
I JUST WANT TO ASK ONE QUESTION
THOUGH.
>> SURE.
DAVID: YOU WROTE A BOOK ONES
"DEATH BY CHINA".
>> A MOVIE, TOO.
DAVID: IN LIGHT OF YOUR VIEWS
AND THE PRESIDENT'S VIEWS, DO
YOU THINK THAT CHINA IS A BIGGER
THREAT THAN IT IS A HOPE OR A
PLUS FOR U.S. INTERESTS?
>> I THINK WHAT PRESIDENT TRUMP
HAS DONE TO HIS ENORMOUS CREDIT
OVER THE LAST THREE YEARS IS
CHANGED THE WAY AMERICANS LOOK
AT CHINA AND THAT'S TO THE GOOD.
I THINK WE'RE MUCH MORE WARY
ABOUT CHINA, BOTH ON CAPITOL
HILL AND ACROSS THE HEARTLAND.
HE'S CHANGED, THEY SAY THE
NARRATIVE ON THIS AND THAT'S
GOING TO MAKE US STRONGER.
WHAT HE'S DOING IS PROVIDING
TOUGHNESS AND THAT'S GOOD FOR
THE AMERICAN PEOPLE AND GOOD FOR
THE HEARTLAND.
DAVID: BY THE WAY, YOU HAVE A
PIECE IN FOXNEWS.COM RIGHT NOW
THAT WE SHOULD ALERT OUR VIEWERS
TO ABOUT DRONES AND HOW A LOT OF
THESE DRONES HAVE PARTS FROM
CHINA THAT COULD BE A SECURITY
PROBLEM FOR US, RIGHT?
QUICKLY.
>> YEAH, QUICKLY, THE DRONES
THEMSELVES, THE PROBLEM WITH A
LOT OF THE CHINESE PRODUCTS THEY
SELL HERE IS ALL OF YOUR
INFORMATION GOES DIRECTLY BACK
TO SERVERS IN CHINA.
WHAT COULD GO WRONG THERE?
I'LL LET YOU GO ABOUT THAT, BUT
LET'S HAVE A POSITIVE 2020.
DAVID: YES, INDEED.
>> A BOOM YEAR FOR THE TRUMP
ECONOMY, HIGH WAGES, LOW
UNEMPLOYMENT, HAPPY NEW YEAR.