GREAT REPORTING.
HERE IS MY MESSAGE TO
PRESIDENT TRUMP AHEAD OF HIS
MEETINGS WITH PRESIDENT XI.
CONTINUE TO PROCEED POSTING
AHEAD WITH WHAT IS WORKING WHEN
IT COMES TO TARIFFS.
DO NOT SETTLE FOR AN UNEVEN
DEAL.
I KNOW HE IS SMART, BUT HE HAS A
LOT OF PEOPLE FROM WALL STREET,
ALL THESE PEOPLE PUSHING HIM ON
THAT.
CHINA HAS DONE LITERALLY NOTHING
TO EARN A REPRIEVE FROM THE
SCHEDULED TARIFFS.
CHINA SAYS THEY WILL DO BETTER,
BUT WHERE'S THE EVIDENCE?
REMEMBER WHAT PRESIDENT RAGAN
SAID ABOUT THE SOVIETS, IT CAME
TO MILITARY ISSUES, OF COURSE, A
BIG ONE WAS TRUST BUT VERIFY.
REMEMBER, MR. PRESIDENT, YOU WON
BECAUSE OF MAIN STREET, NOT
REALLY WALL STREET.
HEREWITH REACTION IS STEPHEN
YATES, CHINA EXPERT, FORMER
DEPUTY NATIONAL SCARED ADVISOR,
FOR VICE PRESIDENT DICK CHENEY,
AND ROBERT WOLF, FORMER IKE
OBAMA ECONOMIC ADVISOR.
YOU ARE OF THE MIND THAT WE NEED
A SLIGHTLY MORE -- SOFTER
APPROACH TO CHINA, WHEN IT
COMES -- AT LEAST THE THREATS OF
TARIFFS.
>> I WOULD SAY IT A LITTLE
DIFFERENTLY.
I WOULD SAY, ONE, I WOULD ARGUE
MORE FORCEFUL.
TRADING WITH THE 11 NATIONS
EX-CHINA.
THE BEST WAY TO ATTACK CHINA IS
THE TRADE AROUND THEM.
SECONDLY, I THINK IT IS ALL
ABOUT INTELLECTUAL PROPERTY AND
PATENT PROTECTION.
I WOULD BE TOUGHER ON THINGS
LIKE ECONOMIC ESPIONAGE AND
GETTING THEM INVOLVED.
WITH TARIFFS COME I DON'T THINK
THAT IS A GOOD POLICY.
THE ONE WHO LOSES THE MOST ARE
OUR CONSUMERS, BECAUSE THE
TARIFFS GET PASSED ON TO US AS
TAXES AND HIGHER COST OF GOODS.
I DON'T THINK THAT IS GREAT,
ALTHOUGH IT HAS BEEN WORKING.
>> Laura: THAT IS NO MINE.
YOU HAVE RECITED PRETTY MUCH THE
INTERNATIONALIST LINE ON DEALING
WITH CHINA.
HERE'S THE PROBLEM WITH THAT.
IF ALL OF THESE WERE THE WAY TO
GO, THEN WHY DIDN'T QUENTIN DO
THEM?
WHY DIDN'T OBAMA DO THEM?
WHY DIDN'T BUSH DO THEM?
WHY, YEAR AFTER YEAR AFTER YEAR,
DO WE HAVE AN EXPANDING TRADE
DEFICIT WITH CHINA, AND THEY
BECAME MORE BOLD, MORE
AGGRESSIVE, AND FRANKLY, MORE
VICIOUS AND HOW THEY RAN THEIR
TRADE REGIME, HOW THEY DEALT
WITH U.S. COMPANIES, A LITTLE
COMPANY -- NOT LITTLE -- A
COMPANY UP IN MINNESOTA, AN
EXAMPLE.
THEY DO COUNTERTOPS.
THEY JUST GOT A DECISION, I
THINK IT WAS AT THE
INTERNATIONAL TRADE COURT,
AGAINST WHAT CHINA HAD BEEN
DOING.
QUARTZ COUNTERTOPS, THEY RIPPED
OFF ALL OF THEIR DESIGN, PUT
CHEAT PRODUCT INTO THE
UNITED STATES -- PROBABLY
TOXIC -- AND WE HAVE REAL JOBS
ON THE LINE IN MINNESOTA.
REAL JOBS.
THANKFULLY, THEY WON, BUT THEY
HAVE THE MONEY TO FIGHT.
IF ALL OF THESE WORK, THEN WHY
DIDN'T ALL OF THE GENUS TO
ECONOMISTS IN THE OBAMA
ADMINISTRATION'S SAKE, LET'S DO
THIS?
THEY TRIED, IT DIDN'T WORK.
BECAUSE CHINA IS THE BIG DOG ON
THE FIELD RIGHT NOW.
OTHER THAN THE UNITED STATES,
THAT IS IT.
>> THERE IS A LOT TO TAKE UNDER
THE HOOD THERE.
LET ME START, ONE, IT WAS TAKEN
BACK BY TRUMP.
>> Laura: IT WAS A DESTRUCTIVE
FORCE FOR MARKET -- WE DON'T
HAVE TIME TO DEBATE TCP.
>> I WOULD DISAGREE WITH THAT.
THE CHAMBER OF COMMERCE WAS FOR
IT.
>> Laura: YOU JUST MADE MY
POINT FOR ME AT THE CHAMBER OF
COMMERCE IS FOR IT.
IT IS GOOD FOR WHAT THE BOTTOM
LINE IS FOR AMERICAN BUSINESS.
CERTAIN BUSINESSES ABLE TO WORK
OVERSEAS, I GET THAT.
IT HAS NOT BEEN GOOD FOR THE
U.S. ECONOMY.
>> TARIFFS HAVE HAMMERED
AGRICULTURE, WHICH IS WHY WE
NEEDED THE BAIL OUT.
IS THAT ACCURATE OR NOT
ACCURATE?
>> Laura: I THINK WE BAIL OUT
OUR OWN AGRICULTURAL SUBSIDIES
TOO MUCH.
I'M AN INTERESTING POINT TO MAKE
ON SOYBEANS AND A SECOND, I'M
GLAD YOU RAISED THAT.
LET'S GO TO YOU ON THIS.
I THINK ROBERT DOES REPRESENT A
DOMINANT VIEW ON WALL STREET,
THEY DO A LOT OF BUSINESS IN
ASIA.
I DON'T BLAME WALL STREET FOR
WANTING THIS, WANTING A MORE
CONCILIATORY APPROACH TO CHINA,
WALL STREET GOT REALLY, REALLY
RICH.
AS MIDDLE AMERICA LOST MILLIONS
AND MILLIONS AND MILLIONS OF
JOBS, AND WE BLED, WHAT?
$8 TRILLION?
FROM THE U.S. ECONOMY BECAUSE OF
THESE BAD SCENARIOS WITH CHINA.
I DON'T BLAME WALL STREET COME I
BLAME THE U.S. GOVERNMENT.
>> IT IS OUR RESPONSIBILITY TO
PROTECT OUR OWN INTERESTS, AND
IT HAS TAKEN A SHOCK AGENT LIKE
DONALD TRUMP TO REMIND EVERYBODY
ABOUT THAT BEING THE PRIMARY
MISSION OF OUR GOVERNMENT.
WHEN WE GO INTO THESE
NEGOTIATIONS, IT IS NOT TO HELP
MAKE LIFE BETTER FOR THE CHINESE
PEOPLE -- THAT MIGHT BE A NICE
SECONDARY CONSEQUENCE, IF THEY
ARE LOOKING TO IMPROVE THEIR
LIVELIHOODS.
IT IS TO IMPROVE THE LIVELIHOOD
OF AMERICAN WORKERS, CONSUMERS,
ALL OF THOSE INTERESTS.
THIS HAS BEEN PART AND PARCEL OF
A LONG TIME SERIES THAT HAS BEEN
AT THE HEART OF CHINA POLICY,
THAT HAS BELIEVED IF WE BROUGHT
CHINA INTO THE GLOBAL SYSTEMS,
IT WOULD NORMALIZE BEHAVIOR, AND
OUR DIFFERENCES WOULD NARROW,
AND WE WOULD HAVE GREATER ACCESS
TO THEIR MARKETS.
EVEN IF YOU JUST TAKE THE TARIFF
QUESTIONS, THEY STILL HAVE
WILDLY HIGH TARIFFS IN KEY
AREAS.
THE WTO HAS HAD SEEMINGLY NO
IMPACT ON THAT.
BEHIND THE SCENES, IT IS NOT
JUST AMERICANS WHO BROADLY THINK
A CHANGE IN COURSE WAS CALLED
FOR, A LOT OF OUR ALLIES -- EVEN
EUROPEANS --    AND OTHERS AT TE
EUROPEANS --    AND OTHERS AT TG
EUROPEANS --    AND OTHERS AT T0
FROM LATIN AMERICA -- THEY ARE
SAYING WE WANT PRESIDENT TRUMP
TO HOLD FIRM ON THIS BECAUSE
THERE NEEDS TO BE A RESET AND
HOW CHINA THINKS THEY CAN ENGAGE
THE WORLD.
IT HAS GOTTEN AWAY WITH TOO MUCH
FOR TOO LONG.
>> Laura: ROBERT, DO YOU
THINK, IN THE END, TRUMP WILL
BACK OFF ON THESE TARIFFS?
THE INCREASED TARIFFS THAT WOULD
KICK IN JANUARY?
>> I THINK NOT.
I DON'T THINK THERE WILL BE A
REAL AGREEMENT COMING OUT OF IT.
>> Laura: BUT A PAUSE?
>> I THINK THERE WILL BE A PAUSE
FOR THREE MONTHS, NEGOTIATIONS,
THE MARKET WILL LOVE THAT, THEY
WILL FEEL GOOD ABOUT THE MARKET
LOVING BAD, WHAT THE FEDS SAID
GOING INTO CHRISTMAS TIME.
I ACTUALLY THINK HE WILL ALLOW
IT, BUT THE RHETORIC WILL START
JANUARY 2ND.
>> Laura: U.S. SOYBEAN EXPORTS
AND CHINA ARE DOWN 98 PERCENT,
THE BIG HIT THIS YEAR.
THE MARKETS WOBBLED, THE DAMAGE
BECAME CLEAR TO THAT INDUSTRY.
BUT THE POLITICAL FALLOUT THAT
CHINA ANTICIPATED, THIS IS FROM
THE NEW BUSINESS WEEK PIECE
TONIGHT, NEVER MATERIALIZED.
REPUBLICANS LOST A NET TOTAL OF
ONE SEAT IN KANSAS, WHICH IS
SOYBEAN COUNTRY, ONE SEAT.
>> I HAVE TO PLAY THE OTHER
SIDE.
