Six Percent, Two Percent, Six Hundred Billion Dollars discussed on Brian Kilmeade

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Public money yet that is a what was going on yesterday late afternoon they were talents in retaliation for Thursday's tariffs came down and many people said in a scale one to ten it was eleven the market reacted with losing seven hundred points right now it's up about a hundred and twelve the person welcome this aggressive action is a man who study this entire adult life not only North Korea but China and knows they had to be confronted Gordon Chang joins us right now Gordon is the author of the coming collapse of China Gordon were you surprised at the level of retaliation certainly Brian what China is doing right now is desperate so for instance if the last three or four trading days it is kept its currency low forcing it down and this is a really bad thing for Beijing and the reason is first of all as president trump pointed out it means that the they're paying for the terrorists from an economic point of view but more important China's number one risk to its economy to its political system is net capital outflow and in two thousand fifteen two thousand sixteen they had more than two trillion dollars of net capital outflow the way to stop that capital outflow is to have a stable or rising currency Beijing is encouraging people to take money out of the country and that could be a grievous wounds do you also believe Gordon's dead if they devalue their currency that their products become more affordable for the for the consumer they certainly do I mean that's just the liminal economics clearly that's the case and not really me and for a number of other reasons the American consumer is not going to bear much if anything of this second round poor third round of terrorists I think this is really good policy on the part of the trump administration designating China a currency manipulator that sends a signal to the world this is really good trade policy on the part of the United States very painful for the agriculture very painful for the farmers I mean they're not making a quick purchase to begin with and we're not having a level playing field when this whole negotiation began so we haven't gotten there yet but in the meantime the farmers of feeling the pain they certainly are and that's why the administration has said what two rounds now of increased subsidies for farmers and we're going to have to have more Beijing is targeting them and its actions are increasingly predatory we got to remember what this is about it's not about soybeans farmers will be able to plant different crops they'll be able to sell to different customers so at the end of the day they should moralist be okay especially with the subsidy subsidies from the administration but what this is really about Bryant is high technology president trump the ones we talk about our imposes a remedy for the sept of US intellectual property and the Chinese are stealing hundreds of billions of U. S. I. P. a year somewhere between let's say a hundred and fifty and six hundred billion dollars that's a that's a wound that we have to close fast Susan I live in this country and sometimes I don't know what goes on behind the scenes with China what was going on behind the scenes when we were basically ninety percent there on a a real good trade deal with potentially good trade deal and they backed out who pushed who to do walk do you know we don't know Brian but there's a lot of information that can lead us to some speculation and and this is the critical question the US because it points to a failing Chinese political system as you point out in April and prior months trying to made commitments to the United States on trade they returned a the draft of the trade agreement to the trump administration on may third and the draft did not include any of the commitments I think what happened is he doing playing although he looks all powerful was not able to persuade other elements of the Chinese political crisis and to accept the deal that's a specially the heads of state enterprises benefited from China's prior practices many of them violations of their trade obligations almost all of them predatory and so the gym thing just found itself isolated and alone and we've seen other symptoms of see Jim things weakness so if it's in that this really is see not being able to get what he wants going Chang with us now Gordon what I understand is there kind of a group six point two percent but I and they keep saying that China's economy is weak that's a heck of a growth would kill for that type of GDP growth will my missing they're not really growing at six point two percent in the second quarter of this year growing if they're growing at all Brian maybe one percent may be zero they could even be contracting you look at the underlying indicators for June point two eight streaming troubled economy one can make the case for contraction the first numbers for July don't look any better there was a senior senior professor at women university in Beijing in December created a sensation when he said in two thousand eighteen China was gonna grow no more than one point six seven percent and might even contract Beijing ultimately reported six point six percent growth for two thousand eighteen but China's economy wouldn't be showing these symptoms of distress if they were really growing at six percent I mean we've seen all sorts of the poor we've seen thanks being taken over that doesn't happen in a fast growing economy Brian true I just a little befuddled because I do think they're very they're very strategic and what they did and when people come back and said by devaluing their currency refusing to buy the agricultural goods they do the they sent our market into a tizzy and I'm just wondering when they go to game plan is this out why did they come back at eleven do they want to out wait they they want to wait out this president do they believe the next president if it's not president trump will be better and don't they know if president trump wins the deals going to get harder to make I think to a certain extent they are trying to wait out trump but also I think that the Chinese political system is in paralysis right now so they can't come to a trade deal even if they wanted to I think and this is just rank speculation on my part I think that they look at the present United States and they can't figure him out and so what they want is they want someone who is predictable even someone who is tough they would rather have someone that they know how to deal with rather than president trump so clearly the Chinese are going to be working during election season to get somebody else elected Leslie on the missiles they are upset that the US might be to point missiles in the region where there are thousands of missiles according to John Bolton from China and listen to what their chief arms control official said yes a code forty nine China will not stand idly by and we have full to take countermeasures shook the US deploy into medium range ground based missiles in this part of the world I wouldn't do it I think is so what I can do about it and they were you have missiles there yeah the point is that in the United States needs to say this out loud is that China has these missiles what we're doing is just evening up the balance I don't know what China will do there's going to be a lot of huffing and puffing they're already working against American interests I don't know what more they can do without actually killing an American serviceman you know we gotta remember Brian that these guys actually injured to see one thirty pilots in April of last year over there or point of Africa Djibouti and they entered our diplomats in Guang Jo with those sonic attacks injuring harming Americans so what more can they do without starting a war yeah maybe Hong Kong will be the next thing would say go in there with with tanks well Hong Kong is not tank country and they that's a last resort for them because they know that they actually introduce you the people's armed police or the people's Liberation Army they've got a long term struggle on their hands because Hong Kong people don't like them to start out with they don't want to be invaded and you got a lot of Hong Kong kids who are willing to die they've been saying that now for about four or five weeks and we've actually seen four suicides went to the protest so there's going to be a lot of blood and not all of it is going to be home on people's blood in its revenue that they did mainland China wants right so if tankan's not successful that's less revenue well it's it's so it's a lot less stuff for China the one thing they really got to worry about is the United States and other countries actually enforcing strict sanctions for whatever they do in Hong Kong there's a lot that we can do Brian prior administrations have been looked into this one is not especially as China challenges us across the board in ways which are considered to be dangerous predatory belligerent and hostile going Chang thank so much the coming collapse of China the name one of his with his books so appropriate right now the market's up a hundred forty four point so maybe things are somewhat settled after yesterday's loss of seven hundred eighty points thanks cordon thanks Brian I we come back I'm gonna go on F. E. N. with Stuart Varney and talk about things that are on the tip of your tongue including the gun control debate here in America Brian.

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