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Tag: Larry Kudlow

  • China Trying to Become an Economic Hegemon for the 21st Century

    China Trying to Become an Economic Hegemon for the 21st Century

    “This is deeper than trade,” says Steve Bannon, former White House Chief Strategist. “It’s a combination of One Belt One Road, which is this infrastructure project to unite the Eurasian landmass. It’s Made in China 2025, which is the convergence of advanced chip design, artificial intelligence, and robotics, where they will take over advanced manufacturing. Then it’s Huawei and the 5G rollout. The convergence of all three of those are trying to make China an economic hegemon for the 21st century.

    Steve Bannon, former White House Chief Strategist, discusses in an interview on CNBC the true objective of the Chinese in trying to economically dominate the world through whatever means necessary which is why current trade negotiations are so important to US prosperity going forward:

    China Trying to Become an Economic Hegemon

    I’m not so sure how close we are (in a trade deal with China). I mean CNBC’s interview with Larry Kudlow where Larry Kudlow said last week that Lighthizer had to read the riot act to some of the Chinese about some of the red lines that had come back on the turn on the documents. You’ve got the hawks in China that really hunkered down and said we don’t know if we need to deal with the Americans.

    Remember this is deeper than trade. It’s a combination of One Belt One Road, which is this infrastructure project to unite the Eurasian landmass. It’s Made in China 2025, which is the convergence of advanced chip design, artificial intelligence, and robotics, where they will take over advanced manufacturing. Then it’s Huawei and the 5G rollout. The convergence of all three of those are trying to make China an economic hegemon for the 21st century and essentially use their totalitarian mercantilist system to replace free-market capitalism of the industrial democracies.

    US Doesn’t Understand the Economic War the Chinese Are Running

    That’s why I was in Japan invited by the Liberal Democratic Party to go around Japan and give these lectures I give on China. It’s 100% they’re saying that the United States and Europe don’t quite understand yet the economic war that the Chinese are running on the West. This is not just about trade. It’s not about soybeans. That’s why Lighthizer, the senior partner of Skadden, Arps, who is President Trump’s right-hand man on this is so important.

    This is about fundamental structural changes to the core of the Chinese economy to really integrate it into the industrial democracies. I think that this thing could go on for a long time. I actually happen to think before you get to a deal I think you’re enough to put the punitive tariffs up to 25 percent to bring the Chinese really to the table to have that types of changes that President Trump has really been hammering on since the day he started.


  • Kevin O’Leary: The American Core Economy is On Fire Like it was in the 60’s

    Kevin O’Leary: The American Core Economy is On Fire Like it was in the 60’s

    Shark Tank star and investor Kevin O’Leary says that despite the recent stock volatility the “American core economy is on fire like it was in the 60’s.” O’Leary also believes that getting a deal done with China, as we did with Canada, Mexico, and Europe will make the economy boom even more. 

    “If we get a deal done with China, Katy bar the door! The upside on the S&P, if that gets worked out, will be extreme. We will have concern about a melt-up!”

    Kevin O’Leary talks about how the American core economy is on fire in an interview on CNBC:

    Asia is Having a Massive Correction

    I think it’s fair to look at large-cap companies and say that they should have some exposure to the volatility to the rest of the world. Over 47 percent of the S&P’s earnings come from overseas markets, notably Asia which is having a massive correction and Europe which is slowing down a little bit. Obviously, the German numbers over the last three months have been slower than people anticipated and it’s started to be reflected in some of their debt.

    Volatility Because of Some Concern About China

    I still look at that and say, okay, I’m going to own those companies because of their sheer scale and their growth and dividends. Yes, we have more volatility because there is some concern about China and other markets. Our own domestic market, our companies in this country which don’t sell abroad and which have a lot of their input costs at question is one of the reasons small caps are correcting because people are worried about tariffs actually effecting input costs.

    The American Core Economy is On Fire Like it was in the 60’s

    I have over 30 of them now, almost in every state. The last two quarters I’ve never had anything like this in my life. We’re hitting on every cylinder we’ve got. So look, yes we should be concerned, but the American core economy is on fire. It’s on fire like it was in the 60’s. I’m still bullish on the American economy, my money is still going there because I live it every day. These are not public companies, these are private ones that send me a check every quarter and cash flows are going up. I love them.

    If We Get a Deal Done With China, Katy Bar the Door!

    The reason we are not having a major correction yet on the China story is that (investors are waiting to see) if we get a deal done as we did with Europe, as we did with Canada, as we did with Mexico. If we get a deal done with China, Katy bar the door! The upside on the S&P, if that gets worked out, will be extreme. We will have concern about a melt-up, which you don’t talk about on a day like today. That’s why the market is waiting to see what happens. So Mnuchin and Kudlow, put your nose to the grindstone, get some work done there, and solve this for us.