Art Laffer: US is the beacon of hope in global economy

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MARKET BACK A LITTLE BIT. THANKS, JACK. LET’S CONCENTRATE ON INTEREST RATES. THE YIELD ON THE 10-YEAR TREASURY NOW AT 1.65%. AS WE SAID AT THE START, IT WAS 1.61. SORRY ABOUT THAT. WE’VE BEEN ALL OVER THE PLACE. ASHLEY: ACTUALLY, 1.62. BOUNCED BACK FROM 1.59. STUART: LOWER 1.60s. WE CAME IT WAS 1.70. NOW IT IS 1.61. I NEED HELP, LOTS OF IT. ART LAFFER, FORMER REAGAN ECONOMIST. ART, WHAT IS GOING ON? WHAT IS GOING ON? THE WORLD IS AWASH IN FREE MONEY. WHERE IS THIS RIDE TAKING US?>>LET ME SAY WHAT THE PROBLEMS ARE. THE PROBLEMS ARE THE REST OF THE WORLD IS NOT DOING WELL ECONOMICALLY. THAT’S A FACT. AND THAT’S SOMETHING REALLY WEIGHING VERY HEAVILY ON THE U.S. AS WELL. NUMBER TWO, THE TRADE NEGOTIATIONS WITH CHINA ARE NOT GOING AS WELL AS ANY OF US WOULD HOPE THEY WOULD BUT THE PRESIDENT ASSURES US HE WILL GET A DEAL, THAT CHINA WANTS ONE, I STILL BELIEVE HE IS CORRECT ON THAT, BUT THAT IS WEIGHING VERY HEAVILY ON THE MARKETS. NUMBER THREE, THERE IS NO INFLATION, STUART. THERE IS NO INFLATION ANYWHERE IN ANYTHING. THAT KEEPS INTEREST RATES REALLY, REALLY LOW. I THINK THAT’S NOT A PROBLEM. THE PROBLEM I SEE, THE INDICATOR I SEE THAT IS A PROBLEM, THAT TELLS ME THAT THE WORLD IS WORRIED ABOUT RECESSIONS EVERYWHERE IN THE WORLD EXCEPT THE U.S., AND IT IS WORRIED ABOUT CHINA IS THAT GOLD PRICES ARE WAY TOO HIGH. GOLD IS THE LAST REFUGE OF THE CAUTIOUS AND IT IS FIRST REFUEL OF THE CAUTIOUS. WHEN HE FEAR THE WORLD, GOLD IS UP AND UP 250 POINT IN THE LAST YEAR. THAT IS A HECK OF A BIG INCREASE. THAT IS A HUGE RISK PREMIUM PEOPLE ARE PUTTING ON MARKETS. THAT CONCERNS ME THEY’RE NOT FEELING GOOD ABOUT THE ECONOMY, FEELING GOOD ABOUT THE COUNTRY OR THE WORLD. STUART: IS ALL THIS GOING TO WORK? IN EUROPE THEY HAVE NEGATIVE INTEREST RATES. THEY ARE PRINTING MONEY UNBELIEVABLY. SAME STORY IN JAPAN. THEY BOTH GOT DEPRESSED ECONOMIES BUT IT IS NOT WORKING, ISN’T IT? MONEY PRINTING STIMULUS, IT IS NOT WORKING.>>NEVER HAS. IT DOESN’T WORK. YOU CAN’T SPEND YOURSELF INTO PROSPERITY, STUART, IT IS SILLY. YOU CAN’T TAX YOURSELF INTO WEALTH. IT DOESN’T MAKE ANY SENSE. EUROPE IS CRAZY. THEY’RE WORRIED ABOUT INCOME INEQUALITY. THEY WILL GET EQUALITY AT ZERO. THEY WILL NOT LIKE THAT RESULT WHATSOEVER. THE U.S. IS THE ONE BEACON OF HOPE. THE ONLY WORRY I HAVE, IS THE ELECTIONS IN 2020, YOU KNOW IF WE GET ONE OF THESE GUYS LIKE WARREN OR BERNIE SANDERS, STUFF LIKE THAT IN THERE, THAT WOULD BE VERY SERIOUSLY DAMAGING TO THE U.S. ECONOMY. OTHER THAN THAT I THINK THE U.S. IS A BEACON OF HOPE. I THINK WE’RE DOING A GREAT JOB. I THINK THE U.S., IF IT CONTINUES WILL LEAD US, THE WORLD OUT OF DESPERATION AND INTO PROSPERITY. STUART: YOU SAY, WE MIGHT LEAD THE REST OF THE WORLD BUT SUPPOSING THE REST OF THE WORLD DRAGS US DOWN? AFTER ALL IF JAPAN –>>THEY ALREADY HAVE. THEY ARE HAVE. IF THE REST OF THE WORLD WERE BOOMING WE WOULD BE MUCH HIGHER MARKETS, MUCH HIGHER PROSPERITY THAN WE ARE. WE WOULD HAVE 4%, 5% GROWTH RATES, STUART, IF THE REST OF THE WORLD WERE DOING WELL. YOU KNOW THAT IS THE PROBLEM HERE. THE REST OF THE WORLD IS FOLLOWING OLD LINE TAX-AND-SPEND POLICIES THAT DON’T WORK, REGULATORY POLICIES. I THINK THE FIRST SIGN OF REVOLUTION IN THE REST OF THE WORLD IS BREXIT. I HOPE IT WORKS. I HOPE THEY GET OUT OF THERE. I HOPE OTHER COUNTRIES FOLLOW SUIT. BUT UNTIL THAT HAPPENS THE U.S. HAS TO BE THE LEADER. AND IT STARTS WITH A GOOD DEAL WITH CHINA. WE GET A GOOD DEAL WITH CHINA, THAT MARKET WILL REBOUND LIKE YOU CAN’T BELIEVE, STUART. WE’LL GET, 5, 6,000 ON THE DOW ON THAT. THAT IS WHAT WILL HAPPEN. IF TRUMP’S CORRECT, I HAVE NO REASON TO NOT BELIEVE HIM, CHINA WANTS THIS DEAL AS MUCH AS WE DO. IT IS BETTER FOR THEM. STUART: I WILL LEAVE IT AT THAT, ART. WHAT A DAY FOR YOU TO BE HERE.>>I DON’T KNOW WHAT TO SAY, VERY STRESSFUL TIME, STRENUOUS, TAKE A BROWN PAPER BAG, PUT IT OVER YOUR MOUTH, BREATHE CALMLY. ONCE YOU GET MELLOW, SORT OF LIKE THE OLD SKETCHES IN “LORD OF THE RINGS,” WHATEVER IT WAS, BE CALM, COOL, COLLECTED. STUART: WHAT ARE YOU TRYING TO DO TO ME, ART LAFFER. YOU’RE A GREAT-GRANDFATHER, I’M A GRANDFATHER. TELLING ME TO MELLOW OUT.>>I JUST HAD MY FOURTH GREAT GRANDCHILD. HOW IS THAT FOR NEAT? FOURTH. ISN’T THAT COOL? STUART: THAT IS A BRIGHT SPOT IN

57 comments

  1. Whenever people in the rest of the world get seriously worried, they cram money into America. So, when they go down we go farther up.

    But we can get choked on cream because we bubbles because the money is not market driven.

  2. Investors believe that the Chinese will take an economic decline so that Trump can be stopped

    Recession time

  3. No savings, no liquid, outstanding home mortgages, student loans, medical bills, car payments and credit card debts. A consumer based economy is not the beacon of hope because its not stable.

  4. It's incredible how delusional and in denial american are. The US literally lost 2 trillions dollar this week and it's losing rapidly as we speak. China is destined to be the world superpower, whether you like it or not

  5. China will not do anything until the Presidential election. Oh yea Remember John Kerry telling Iran to wait for the next election. Now Iran is trying to provoke us into a war. Hmmmm

  6. Breaking trade agreements, throwing up tarifs, using security as a reason to limit trade…with Canada. The US is an unreliable actor in the international system and trending towards isolationism as was done at the turn of the last century. Now when the market goes up it only helps the 1 %

  7. Same clown who told us how great the economy was in 2008, and that there was no recession ahead. The guy is a joke and will be proven wrong again.

  8. Ban ALL American Ag products to China, use the tariffs to subsidize ASIAN allies and good European Allies NOT the UK, France or Germany!

  9. Anyone listening to ART LAFFER is a complete and utter moron.
    How is "trickle down" working for the Kentucky coal miners????

  10. America has too much diversity on tv nowadays. So I stopped watching it. Bout ready to stop watching the news because of it. And that affects whom I vote for. You feel me?

  11. America Is Known For Liberty And Justice For All . If The Hildebeast Is Not Locked Up The World Will See America Has Fallen

  12. you guys are laughable old kudlow gets to preside like greenspan over the largest theft of investor money since 2008.i bet you guys are making money every payday.tar and feathering for trump soon like bush got.

  13. We need trump to cut spending soon the debt is up 4 trillion dollar since trump been in office after he criticize obama for debt in 8 years

  14. Everything spewed by these Talking Heads is a lie. United States unemployment is 20 to 30%. They just don't count people that are unemployed. It's somebody's forced to have two or three part-time jobs just to make ends meet then they count that as two or three full-time employed people. Inflation are also complete lies. They don't count the products that people use. Yes I'll say that again the products that people actually use are not counted, and they manipulate the inflation numbers by substituting worst products for better products so if Beef goes up in price for example they will substitute the price of hamburger meat for the price of a filet mignon and say that the price has not gone up. It is all manipulation. The inflation numbers and unemployment numbers are 10 times what all the talking head Liars say on all the corporate news networks.

  15. America might be in a super slow down of recession next year which would be bad for trump we haven't had a recession since 2009

  16. To all the lovely people with their white nationalist, white supremacist comments. Wake up, that was the democratic party that started them. And tried to suppress the black votes. And the list goes on. Learn your history. So you can learn what racism is all about. Just cause you dont like trump dont mean he's racist. Or maybe your just racist and you figure its easier to blame others. Whatever the case may be. Your democratic party is a party of hate and suppression

  17. Also as he talks about spending just going to ignore we are doing the same thing. We can just keep borrowing money forever

  18. U.s. is the only Beacon of Hope printing the most out of anybody in the world adding 1 trillion plus every year to the deficit
    Was his parents brothers and sisters

  19. No inflation? Trucks cost over $50,000, Junky 50 year old 3 bedroom houses going for over $1 million in some places. Food, medicine and almost everything you buy has gone up significantly over the last 5 years.

  20. Fox news, CIA, Trump and their few parrots are making america in a economic collapse. But media like fox, trump and few advisors want something wild which never happend before. If trump runs in road withous cloths, American people and trump parrots love and support him cause its never happend before 😀.
    Thats how america is exactly running now

  21. Hmmm… I see inflation in my home-owner's and car insurance, restaurants that I frequent, car parts, groceries, internet access and most of all, my mother's nursing home bills! There is definitely inflation happening in certain sectors… some sectors way more than others (like long term care). The gains in the market are not keeping up with the increasing costs of keeping my mom in a nursing home!

  22. The reason people don't feel good about the economy or the world is because of all the doom and gloom leftist talking heads in the lying liberal media! Stocks are undervalued because the left has beaten them down with their rhetoric. Look at values stocks and PE ratios. Most are undervalued by historic standards but the media keeps drumming the doom and gloom which doesn't reflect what is really happening on the ground.

  23. The US must lead by example of free markets and low taxes and regulations! Everybody else wants to tax and regulate and crush incentives to work.

  24. We need to forget about China and boost trade relations with Brazil, Mexico, UK, Japan, Korea, Viet Nam, Honduras, Cambodia, Canada, Africa, India, etc. We should never be so dependent on one country for our prosperity ever again! China was supposed to be the great savior of the world economy but they have proven to be too abusive and costly to work with. Their labor is not that cheap anymore and their terms are criminal which more than negate their "cheap" labor. Forget China. Teach them a lesson in manners and fair trade!

  25. China doesn't care because its leadership isn't threatened by a democratic vote. Xi is emperor for life. What does he care what his people want? All he cares about now is maintaining power and that will be maintained through fear, intimidation and force.

  26. The rest of the world has went too far left. We are headed their too if we dont watch it. If we fail the world economy fails.

  27. US GDP was 20.5 Trillion in 2018. Global GDP was 80 Trillion total….that leaves 55.5 that the REST OF THE PLANET made combined!
    Here's how a few of our STATES compared to a few COUNTRIES:

    1. California ($2.97T) – United Kingdom ($2.81T)

    2. Texas ($1.78T) – Canada ($1.73T)

    3. New York ($1.70T) – Korea ($1.66T)

    4. Florida ($1.04T) – Mexico ($1.20T)

    5. Illinois ($868B) – Netherlands ($910B)

    6. Pennsylvania ($798B) – Saudi Arabia ($770B)

    7. Ohio ($680B) – Switzerland ($709B)

    8. New Jersey ($634B) – Taiwan Province of China ($603B)

    9. Georgia ($595B) – Sweden ($555B)

    10. Massachusetts ($577B) – Poland ($550B)

    Overall, the U.S. economy is the largest in the world. At the same time, its debt-to-GDP ratio, measuring the size of a country’s debt compared to its GDP, isn’t even in the world’s top 10 despite Obunghole's best efforts to spend us into oblivion.. This shows a healthy US economy which still rules the world …a beacon you could say. Lol…suck it bitchezz.

  28. Democrats are back stabbing the United States by telling hostile foreign governments they don't have to abide by fair trade rules and to wait for after the US elections when they get a socialist foreign interest President who will continue to undermine and sell out America!

  29. US grows at 2% of $20 trillion economy, so $400 billions of income, yet the military budget is $700 billions already, ends up negative $300 billion already without a penny on other expenses, that’s how the beacon is doing with $22 trillion debt already, us think it can live on borrowing , endless printing money and tomorrow’s money forever, the great beacon! So many brazen experts show up everywhere to claim how great the Us economy is with so much kool aids.

  30. "I’ve heard and studied the Laffer curve for many years in the Wharton School of Finance." Donald Trump – 2019
    Trump graduated from Wharton in 1968, and Laffer didn’t outline his tax-cutting theory until 1974

  31. So, all liberal democrat socialist on here failed economics. Most have not only ever own a business they can't keep a job.

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