Peter Navarro: Yield curve is inverting due to bullish circumstances


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.

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