Trump announces a 90 day pause on all tariffs, except China. The Dow Jones and S&P 500 hit new records in a matter of minutes. China strikes back and the markets go into a frenzy. China stands alone and the entire world is against them.
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00:02:26.000Unite the entire free world as a coalition.
00:02:30.000We could deal with these trade partners.
00:02:31.000By the way, as Treasury Secretary Besant clearly said, he's sitting down with Vietnam this afternoon.
00:02:36.000I expect a really good deal of Vietnam saying they're going to buy more LNG or they're going to buy more of our cattle or exported beef, I should say.
00:02:43.000President Trump has been calm and cool and China retaliated.
00:03:41.000This is great leverage now going into the Iranian negotiations as well.
00:03:46.000The timing when it comes to Iran is perfect.
00:03:49.000And now Russia is still trying to cozy up to the United States regarding Ukraine and President Trump, brilliant dealmaker, brilliant, not putting any extra sanctions or tariffs on Russia, saying, that's a carve-out, we've got to work on this diplomatically.
00:05:09.000Phenomenal. If we can sustain the dumping of American treasury bills by the Chinese Communist Party, they want to try to push up our 10-year note.
00:06:03.000Anyone that is leveraged, that has ties to the Chinese Communist Party, they are wondering, are these capital markets going to be joined out?
00:07:27.000That's why I'm proud to partner with AMAC, the Association of Mature American Citizens, because they are the voice of Americans who believe in faith, family, freedom, and the values that made this nation so great.
00:07:36.000While other senior organizations push a woke left-wing agenda, AMAC is doing the real work holding Washington accountable.
00:07:43.000They're fighting to make the Trump tax cuts permanent, protect Social Security, defend election integrity, and push back against radical policies that threaten our way of life.
00:08:18.000When President Donald Trump was merely a real estate developer, he was facing massive debt in the 1990s.
00:08:25.000He found himself owing billions of dollars to banks.
00:08:28.000In fact, some of his premier projects, the Trump Taj Mahal in Atlantic City, the Trump Plaza Hotel in New York City, and the Trump Castle in Atlantic City, they're almost all going under.
00:08:54.000...owed so much money to these banks that seemingly it looked as if Donald Trump had no leverage.
00:09:01.000It looked as if Donald Trump did not have any cards.
00:09:04.000Donald Trump owed all of these banks money.
00:09:08.000It looked as if that the banks held all the cards.
00:09:11.000But President Donald Trump flipped the script.
00:09:14.000In a historic and legendary moment, President Donald Trump, at the time real estate developer Donald Trump, brought in all the banks to his boardroom.
00:09:24.000And he made a counterintuitive, rather bold argument where he said, yes, I owe you a bunch of money.
00:09:33.000Taj Mahal filed for Chapter 11 bankruptcy protection.
00:09:36.000The Trump Plaza had a $407 million loan.
00:09:40.000That's back when that was a lot of money.
00:09:42.000The Trump Atlantic, Trump Castle in Atlantic City faced declining revenues and had a prepackaged bankruptcy.
00:09:49.000All three properties were becoming an albatross on the Trump Organization.
00:09:53.000But President Trump, at the time, real estate developer Trump, brought everyone in the room and said, I don't think you banks understand.
00:10:00.000You need me a lot more than I need you.
00:10:03.000The banks were perplexed by this argument.
00:10:05.000In this legendary meeting in Trump Tower, when Donald Trump brought everybody into the room, he said, listen, if I go down, you go down with me.
00:10:28.000But these banks have given out so much money to Donald Trump.
00:10:32.000They were so hyper-leveraged to Donald Trump that they needed to make a deal.
00:10:39.000That they needed to come to the table.
00:10:41.000This same logic that Donald Trump successfully used when he was a real estate developer in the 1990s and got him out of a major, major hole.
00:10:50.000This same logic is exactly what Donald Trump is doing on trade.
00:10:54.000In particular, his use of tariffs to address the chronic U.S. trade deficit.
00:11:00.000If America is the buyer in the global economy, then the world needs our market more than we need their product.
00:11:14.000In Trump's view, we actually hold all the leverage, not in spite of our trade deficit, but because of it.
00:11:24.000Similar to his negotiation with all the banks in the early 1990s, tariffs are now a tool to flip the imbalance, forcing trading partners to come to the table, not because they want to, but because they can't afford not to.
00:11:41.000Just as he told the banks, you need me, or else you are going to collapse.
00:11:48.000President Donald Trump is now saying to all of our trading partners, you need access to our market, so let's negotiate.
00:11:55.000Tariffs in this particular framework are not isolationist tantrums, but instead, you could argue, they are strategic instruments designed not to destroy trade.
00:12:09.000But to rebalance it on terms that reflect America's centrality to the global economy.
00:12:15.000When you are in a trade deficit, it's not good.
00:12:22.000But the secret hidden power switch behind all of it, the skeletal key is that you actually hold all the cards.
00:12:34.000China is applying all of these tariffs on U.S. goods.
00:12:38.000Newsflash, we don't import that many goods into China, but we import an enormous amount of goods into America.
00:12:45.000So when we apply the tariffs on Chinese goods, it is a 100 to 1 imbalance of the cost associated.
00:12:54.000This is Scott Besant, Treasury Secretary, who is employing President Trump's art of the deal.
00:13:00.000Understanding and flipping the idea of leverage.
00:13:03.000Seemingly, you would think, okay, all these other cards they hold, all the other countries hold the cards because they're in a trade surplus.
00:13:14.000Maria, I think it's unfortunate that the Chinese actually don't want to come and negotiate because they are the worst offenders in the international trading system.
00:13:24.000They have the most imbalanced economy in the history of the modern world, and I can tell you that this escalation is a loser for them.
00:13:33.000that they have some very smart, the economists, the academicians, technocrats within their bureaucracy and they would be telling the leadership that we do not have the edge here.
00:14:55.000This is the one opportunity we have to use our leverage.
00:14:59.000If we allowed this to continue, if we did not strike at this moment, if we did not go into the window as we are seeing, Then China would hold all the cards.
00:15:10.000And to go back to the 1990s, when Donald Trump used this mentality, Donald Trump would say, if I go down, we all go down.
00:15:17.000China could say in five years or ten years, if we do not interrupt this balance, imbalance, China could say, actually, that's not true.
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00:17:45.000If I were to guess, based on Secretary Besson's comments, and also President Trump's comments, we're going to see a deal struck with Japan and South Korea.
00:18:59.000So many of our problems in our country are a consequence of our leaders choosing failure.
00:19:08.000Why? Because of ideology or political correctness or they just don't care.
00:19:12.000But the solutions are so self-evident.
00:19:18.000And the promises that the corporate class and the entrenched political elite told us for the last 40 years, they said that if we trade with China, China would become a democracy.
00:19:31.000I would have to say this would be indictment number one.
00:19:35.000If I were a prosecutor, Trying to metaphorically indict the free trade absolutists and the zealots.
00:19:44.000Charge number one would be that neoliberalism would democratize the totalitarian countries.
00:20:13.000They have a stock market, for instance.
00:20:15.000But it's a bizarre balance of an oligarchy and cronyism that is closest to, honestly, fascism, not private property protected, bottom-up, free market capitalism.
00:20:31.00090% of the country are basically slaves to the Chinese Communist Party, effectively.
00:20:38.000We know they are not a Western nation.
00:20:41.000And there was so much naivete in the early 2000s and the late 1990s, early 2000s.
00:20:47.000And we would be led to believe by the experts, yet another failure from the expert class, that the more that we buy our Levi jeans and our iPhones and the toys for our kids and our strollers and our car seats,
00:21:08.000From China, the more that we buy the plastic inventory, that all of a sudden China is going to be no different than Columbus, Ohio.
00:21:21.000They're going to say, oh, you know, we don't like this communist thing.
00:21:25.000We thought that free trade would lead an evangelistic movement amongst the rank and file.
00:21:33.000Not only did we underestimate them, but we significantly miscalculated because the blunder of the economic elite is they wanted it to be true more than they had any evidence that it was going to be true because
00:21:48.000the money was so tempting and so attractive.
00:21:52.000The money flows that people got from unfettered free trade over the last 20 years was so tempting that they concocted appealing and alluring arguments.
00:24:23.000For us allowing their superpower status and for us to come under the perplexing fascination that the more plastic that we import into our country, the richer we get.
00:25:20.000The Chinese Communist Party has forced information sharing agreements.
00:25:27.000They have a state-directed industrial policy.
00:25:30.000Through the coordinated use of state subsidies and forced technology transfers and intellectual property appropriation, China has fused industrial policy with their national strategy.
00:25:40.000There's a program that is called Made in China 2025.
00:25:44.000And when you read it, it is not merely economic in its intent.
00:25:48.000It's about creating massive instruments of global influence.
00:25:54.000All designed to displace Western dominance.