 People say China's bad because China manipulates their currency. We haven't heard this in a while, but they used to say this. So we need a trade war with China We need to penalize the American people Because China has Manipulates its currency really Really I remember saying this on Fox once They asked me the question on a Neil Cavuto showing Fox. Well, but China manipulates its currency and I said are you a you guys Hearing yourself. What does the Federal Reserve do? When it lowers interest rates to zero when we've had zero interest rates for the last almost 10 years That's not manipulating our currency Didn't Trump at some point said the dollar was too high and we should do something about it Have them presidents after presidents Treasury Secretary of a Treasury Secretary Federal Reserve Chiefs after Federal Reserve Chiefs try to manipulate the dollar make it more expensive or less expensive for benefit or Hump of trade all the time It happens all the time Since we went off the gold standard. We've done nothing but manipulate our currency There's nothing unique about what China does Every country out there. What's the European Union been doing if not manipulating the value of the euro? What is the Swiss? Central Bank, it's Dramatically tried to manipulate the value of the Swiss Frank when it got so high that they were worried that it would be too expensive So they started selling Swiss banks to lower the value Yeah, Daniel's absolutely right Trump and Sanders on these kind of issues are very much alike very much alike And when you dig deep into it, you'll discover that Trump and Sanders are like on things like immigration as well Sanders is very anti-immigration Somebody says Trump doesn't think words are important. I know The guys are a certifiable idiot Only thing that's important my my friends are words ideas and The actions that follow from them. All right, so And I don't think that's true. I think Trump thinks words are very important. He spends a lot of thought and time on His tweets. He has a complete and utter pragmatist. He doesn't think principles are important He thinks he can be pro-tariff today, and I won't be surprised if a year from now. He's anti-tariffs. I Would be because he's been fairly consistently anti free trade pro-tariffs since the 1980s So he is anti principles He is the ultimate the most pragmatic president the United States has ever ever had And it really is horrific horrific to watch So let's say So they manipulate the country. So do we who cares? I mean and in fact is China's for the last few years Mostly tried to strengthen its currency which would actually hurt its exports rather than weaken it rather than weaken it if if they actually Freed up their currency for the market to determine its value the country would plummet Which is what everybody accuses them and immediately manipulating it down No, they're manipulating it up To be more to be stronger, which is not good for them exporting So everybody gets this wrong again another topic that everybody on the financial news In in politics in everybody gets this wrong and it's again so damn simple Subsidies well the Chinese subsidizing that's not fair Isn't it I mean I think it's bad that they subsidize Who pays those subsidies? Well Chinese taxpayers and Chinese consumers Who pay for it through inflation? Maybe Who else pays for the subsidies? Well Chinese competitors to the favorite to the favorite Chinese companies who get the subsidies versus the companies who don't The Chinese suffer dramatically from these subsidies Do we Well for the most part no, we actually benefit enormously from the subsidies. We get cheap stuff Now long term I think subsidies are bad for everybody. It's lose lose lose lose Right, just like free trade is win win win win. Everybody wins long term They obviously they lose as Short term in a sense of people losing their jobs company going out of business But in the long run run, it's all win win The same with subsidies and the same with Chinese tariffs. There's no question Chinese tariffs Everybody loses as a consequence if China didn't have tariffs if China didn't have subsidies We would all be long term better off But we don't control China China has subsidies And the fact is that in the short term for the most part we benefit from those subsidies because we Get cheaper goods at the expense of Chinese taxpayers Now it's true that some american companies can't compete So they shift and produce something they can compete But people say but we lose american jobs Do we First of all, there's no such thing as american jobs There's your job and my job and individuals jobs company jobs Have we lost jobs in america? I don't know trump keeps telling us with the lowest unemployment rate in american history At least in modern american history 3.6 percent unthinkable So who have we lost jobs to everybody? It seems in america who wants to work is finding work Companies are going out of business. Have you seen the stock market recently? It's through the roof And profit margins are fairly healthy So Who exactly is suffering? Well, some businesses got a business. Yes, some businesses do and they focus on stuff that they can compete in And yet there's obviously lots of business in the united states There's often obviously lots of stuff being produced in the united states You know that the united states produces more manufacturing goods today than ever in all of american history Manufacturing stuff these manufacturing jobs we've lost. Yes, we produce it with half the people But we produce much much more stuff than we ever did before So what jobs have we lost? Jobs that your grandparents had But that's what happens in a dynamic economy And that's certainly what happens when Emerging markets come online and you know if it's not china It's going to be vietnam and it's not vietnam and it'll be rwanda. It's not rwanda to be nigeria It'll be some country out there that wants to develop that's going to create products build products Cheaper than we can in the united states good for them. That's how they become rich And as they become rich we become richer Because again, it's win win. That's what trade is Oh, we are told but we have this huge trade imbalance Really? Why do we care? Why is trade imbalance a bad thing? in and of itself we Make money doing all kinds of stuff, but not through export We take that money and we buy goods from the chinese, let's say They get our pieces of paper call them dollars We get their stuff that they have invested heavily to produce Who's better off the guy with the pieces of paper or the guy with the stuff? Well, it was a trade So when I bought something from some chinese guy I got something that I valued more than my pieces of paper And he got something that he valued more than the stuff he produced were both better off They're no losers here. Who lost? Who lost? Nobody loses Trade is win win. Now you say, but what happened to Detroit? Well, I mean, why is america manufacturing cars? For why does gm and chrysler and ford still exist? I don't understand it The only thing GM chrysler and ford are good at producing or pick up trucks and SUVs Why do they produce anything else? Because they mean they'd be propped up with the american government They'd be subsidized by the american bubble. Oh, I thought only chinese subsidize No, it turns out we subsidize as well Then why are we so So adamant about them stopping subsidize if we won't stop our subsidies But why hasn't american auto industry died a long time ago? And those workers retrained to do something actually productive instead of build loser cars and nobody wants to buy That wouldn't exist if not for american government subsidies and bailouts Everybody talks about the bank bailouts. What about the auto bailouts? But why does america have to have an auto industry? I mean german cars are great korean cars are excellent japanese cars are wonderful and one day i'm sure chinese cars will be excellent Why not buy our cars from overseas? I don't grow my food. I go to the grocery store and buy it from them They specialize in groceries And you know what? I have a massive trade deficit with my grocery store massive massive They never hire me to come and give a speech. They don't listen to the podcast. They don't support the show on my website And I give them all this money all this money and they never buy anything from me It's awful Now it's worse in this case because the china's actually do buy stuff from us They buy some stuff they import from us not that much, but the rest of the money all those dollars Flow right back to the united states They make investments here. They buy our real estate. They buy companies they buy I don't know buildings And they buy on a massive scale us government bonds So every dollar that we use in order to buy stuff from the chinese Where's individuals comes back to the united states and form a bond purchases the lower interest rates That make it easier for us to borrow money here in the u.s Somebody says instead of making utilitarian arguments against staff. They're correct. I think it's much more effective to make moral arguments You have to make both You have to make both You have to make the economic argument. I don't consider them a utilitarian argument the economic argument You have to explain to people how economics works And what is morality morality is leaving you individual choice and I mentioned this To buy what you want to buy when you want to buy it how you want to buy it from Whomever you want to buy it wherever they happen to live at the price You can negotiate with them without a middleman taxing it arbitrarily Just because they don't like who you've bought it from Because they live in a different country. That's the moral argument, which I've made over and over again But that's you have to also make the economic arguments people left understand how economic works How the economy works they have to integrate both Morality is not floating morality is practical You have to show them how it works how it actually benefits them It's no point in making economic arguments without the moral argument But there's also no point in making them all argument without the practical argument Which is Deep down at the end of the day the moral argument The moral is the practical the practical is the moral But the moral argument I've said it I've said it over and over again I Should have the freedom To choose who to buy from no matter where they live At a price I negotiate I don't need trump to negotiate for me I don't need trump to tax me because he doesn't like who I'm buying from It's immoral for him to do so the role of government The role of government is not to take care of me The role of government is not To dictate who I should buy what I should make how I should live the role of government is to protect me Protect my rights not to protect the rights of the chinese That's why if the chinese people are being Stolen from it or to subsidize their businesses It's not the job of the american government to protect the chinese from tariffs The role of the u.s. government is to protect me For the chinese using guns against me protect me from other americans using guns up against me and the supreme court And the constitution is there to protect me From the federal government tax, you know Imposing itself on my life Trump is violating my rights by imposing tariffs on me What we need today What I called a new intellectual would be any man or woman who is willing to think Meaning any man or woman who knows that man's life must be guided by reason By the intellect not by feelings wishes wins or mystic revelations Any man or woman who values his life And who does not want to give in to today's cult of the stare cynicism and impotence And does not intend to give up the world to the dark ages and to the role of the collectivist