YOUR WISDOM.
>> THANK YOU.
CHARLES: FOR SPENDING TIME WITH
US THIS AFTERNOON.
APPRECIATE IT.
>> APPRECIATE IT.
CHARLES: AS I MENTIONED STOCK
MARKET NOW STARTING TO DROP.
THIS ALL COMING AS CHINA'S
PRESIDENT, OF COURSE IS NOW
GAINING MORE POWER, WE CALL HIM
EMPEROR IN MIDDLE OF TRADE
TENSIONS, THEY'RE HEATING UP.
FORMER STATE DEPARTMENT DEPUTY
SPOKESMAN WHAT IT ALL MEANS FOR
RELATIONSHIP WITH CHINA.
SIR, I TALKED ABOUT THE, THIS
SECTION 301 TRADE ACT
INVESTIGATION, IT BEGAN IN
AUGUST BUT NOW WE'RE HEARING
MORE AND MORE ABOUT IT IN PART
BECAUSE OF ACTIONS TAKEN ON
TARIFFS AND ALSO NOW THE
REORGANIZATION WITHIN THE
ADMINISTRATION.
FEELS LIKE FOR LACK OF A BETTER
TERM, ECONOMIC NATIONAL SYSTEM
BACK FRONT AND CENTER, AND THAT
MEANS WE PUSH BACK HARD AGAINST
CHINA.
>> I THINK THAT IS A FAIR
ASSESSMENT, NUMBER ONE, PETER
NAVARRO IS LOOKING TO INCREASE
HIS INFLUENCE AND STATURE IN THE
WHITE HOUSE.
GARY COHN HAS LEFT.
I THINK IN THE CONTEXT OF THE
TILLERSON DEPARTURE, WHAT YOU'RE
SEEING IS A PATTERN OF NATIONAL,
NATIONALIST CONFRONTATIONALLIST,
TRUMP ENABLERS, BEING ELEVATED
TO POSITIONS OF PROMINENCE AND
THE CONSTRAINERS OF TRUMP OR
ADULTS IN THE ROOM, AS THEY WERE
CALLED, BEING SIDELINED.
I THINK THAT NARRATIVE IS
PROBABLY A LITTLE BIT SIMPLISTIC
AND IGNORES A LOT OF REALITIES
OF POLL AT THIS MAKING PROCESS
BUT THE FACT OF THE MATTER IS
TRUMP CAMPAIGNED ON A NUMBER OF
KEY THEMES.
HE IS COMMITTED TO FOLLOWING
THROUGH ON THOSE THEMES.
HIS RECORD HAS BEEN PRETTY GOOD
BUT THERE ARE A COUPLE AREAS
WHERE HE HAS NOT BEEN ABLE TO
DELIVER AS PROMISED.
ONE IS ON CHINA, ONE IS ON
TRADE, AND ONE IS ON IRAN.
WITH RESPECT TO CHINA AND 301, I
WOULD LIKE FOR TRUMP AND THE
TRUMP ADMINISTRATION TO TAKE A
MORE CONFRONTSTATIONAL ATTITUDE,
MORE AGGRESSIVE ATTITUDE WITH
RESPECT TOWARDS CHINA ON TRADE.
THEY HAVE ALREADY STARTED IT
WITH THE TARIFFS.
THEY WILL CONTINUE WITH OTHER
TRADE ISSUES RELATED TO CHINA.
ON NAFTA, NEGOTIATIONS ARE GOING
ON.
AMBASSADOR NEGROPONTE IS
ABSOLUTELY RIGHT, DON'T THROW
THE BABY OUT WITH THE BATH WATER
BUT I WOULDN'T MAKE ANY BETS ON
THAT SCORE AND FINALLY ON IRAN
ALL SIGNS ARE POINTING TO A
DEPARTURE FROM THE JCPOA.
IN WHAT FORM, FASHION, WHAT
TIMING IS REMAINS TO BE SEEN.
IF YOU LOOK AT THE PATTERN, TO
ME IT POINTS TO TRUMP FOLLOWING
THROUGH ON HIS PROMISES.
HE PROMISED TO MOVE THE EMBASSY
TO JERUSALEM.
HE DID IT.
HE PROMISED TO RENEGOTIATE
NAFTA.
HE IS DOING IT.
HE PROMISED TO BE TOUGH ON IRAN.
HE USED CHEMICAL WEAPONS IN
SYRIA.
CHARLES: RIGHT.
>> SO I THINK, I THINK THERE'S A
PATTERN LEAR.
CHARLES: AND TO THAT POINT, THE
ECONOMIC POINT THE ECONOMIC PART
IS HARDEST AS THE TERM IMPLIES,
A TRADE WAR WOULD HAVE
ON BOTH SIDES.
SO WE UNDERSTAND WHY WE AVOIDED
THAT.
LONGER WE AVOIDED IT, THE MORE,
THE RECALLED WOULD, MORE
SPECIFICALLY CHINA HAS TAKEN
ADVANTAGE OF THAT.
I BELIEVE VOTERS OF PRESIDENT
TRUMP ARE WILLING TO TAKE THE
HITS, THE NEAR-TERM, SHORT-TERM
ECONOMIC HITS THAT COME WITH
THIS.
UNFORTUNATELY THE GOP ELITES,
WALL STREET, THEY HAVE BEEN
SCREAMING LOUDLY AND, MY POINT
OF THE QUESTION HERE IS, DOES
THAT HURT PRESIDENT TRUMP'S
ATTEMPTS TO LEVEL THE PLAYING
FIELD ABROAD?
>> WELL, I MEAN LOOK, THERE ARE
SHORT-TERM HITS AND THERE ARE
LONG-TERM HITS.
THOSE WHO ARGUE AGAINST THE
POLITICS OF THE GESTURE, LET US
SAY, ANNOUNCING TARIFFS, OR
ANNOUNCING AN EMBASSY MOVE, OR
ANNOUNCING THAT YOU'RE LEAVING A
AN AGREEMENT, POINT TO BOTH
SHORT TERM HITS AND LONG-TERM
HITS BUT THE LONG TERM HITS ARE
ONES SCARIER ONES BECAUSE LOOK
THE WORLD IS COMPLICATED AND
THERE ARE UNINTENDED
CONSEQUENCES ON A NUMBER OF
DIFFERENT LEVELS TO DECISIONS
MADE IN WASHINGTON FOR
SHORT-TERM POLITICAL GAIN.
CHARLES: RIGHT.
>> I THINK THAT IS THE DYNAMIC.
YOU KNOW, THE PEOPLE AROUND
TRUMP, I THINK IT HAS BEEN SHOWN
AND DEMONSTRATED QUITE CLEARLY
IS, YOU KNOW, DON'T GET ON THE
WRONG SIDE OF THE BOSS.
HELP HIM TO DO WHAT HE WANTS TO
DO.
IF YOU TAKE ISSUE WITH HIM, DO
IT IN PRIVATE, NOT IN PUBLIC.
CHARLES: YEAH.
>> THAT WAS TILLERSON'S CARDINAL
SIN.
CHARLES: I THINK SO TOO.
TILLERSON A VERY PROUD MAN, VERY
ACCOMPLISHED, VERY SUCCESSFUL.
NOT SURE HE WAS REALLY A GOOD
FIT, BUT PROBABLY NEEDED OUT OF
