Peter Navarro: Yield curve is inverting due to bullish circumstances

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.

68 comments / Add your comment below

  1. BECAUSE SWAMP WANTS TO DESTORY AMERICA AMERICANS AND LEGAL IMMIGRANTS. BECAUSE THEY HAVE LOST AND KNOW THEIR TREASONIST CRIMES AND CRIMES AGAINST HUMANITY WILL BE EXPOSED…..

    JACKSON LEE WAS ON EPSTEIN ISLAND!!!!! BIDENS CLINTONS FAMILY PODESTA BROTHERS ANDERSON COOPER STEVEN COLBERT JIMMY KIMMEL KEVIN SPACEY CHRIS CUOMO ROTHSCHILDS BRONFMANS SOROS …….
    NXIVM SNCTM VANGUARD RACHEL CHANDLER ALLISON MACK KEITH REINER …….. THEY ARE ALL CONNECTED. AND ALL CONNECTED TO THE SENATORS CONGRESSMEN AND WOMEN EX PRESIDENTS HOLLYWEIRD MUSIC INDUSTRY AND MEDIA!

  2. the fed should not have and should not in the future cut rates it will do nothing but throw more doom and gloom in the markets and economy and do nothing to help the root of this problem.

  3. Good to see Trump had SECOND THOUGHTS on China tariffs and Iran.. and the markets responding positively ..in the short term at least.

  4. chinese elite have dump their fake currency into their Asian market to cause the yield to invert. its just a wave cascade in the markets to hurt american business. what china failed to realize whats that it was a chinese sudo-sell off of their investments in Asia. American businesses bought them!!! its f/cken crazy i wish i had a million to invest id be rich right now. look out Singapore and Malaysia for huge investment in coming years

  5. Amazing how liberals are always wrong. You can bet opposite of what they complain about and do well in the market! Losers!

  6. The media and some analysts are talking recession to panic people into a major stock market crash before the Presidential election.

  7. China is just NOT going to get away with intellectual property THEFT anymore. They have a decision to make—either join the civilized word or stay ALONE. There's NOT going to a trade agreement without intellectual property protection including the enforcement and penalty mechanism. Period.

  8. All of the greedy treasonous corporate officials and chinese investors must be fully held responsible for their betrayal of the western countries to feed their evil greed and perversions from their fellow cpp communist rich chinese mafias fake country and currencies whom brainwashed ALL these greedy rich traitors and now communists.

  9. In history 100% of yield curves that went negative had a crash don't believe these guys are lying look at past charts goes negative then bullish then crash

  10. It's not an inverting curve!! The Market is so happy that it is going to try a Double Triple in honor of Simone Biles!! Wheeeeeeee!!!!!! Nailed It!!

  11. Monetary policy needs to complement the fiscal policy of President Trump and not war it down… With a blossoming economy it's an economic no brainier to lower interests rates! Democrats found a lover in China whose actions caused the disappearance of 70k factories and over 5million jobs… How could they do this and still have die had support. More wisdom and courage to President Trump and Peter Nevaro and

  12. The wall street pussies better grow some balls and quit crying about the Chinese economy, buy American, problem solved.

  13. We had this same issue in 2007 fox said we was not going into a recession we know what happened the worst recession since the great depression fox news isn't right on anything

  14. I thought the economy was so good the markets are saying something else now trump wants to blame the fed jfk was killed because he was against the fed and signed a executive order ordering the govt to make interest free silver bars to pay off the debt

  15. Navarro,Trump and all his cabinet All suffer from Alzheimer disease, how can they miss over 6000 American's JV companies in China that skimming over 200 billion dollars profits from China also Chinese contribute to US : foreign students spent school fee and accommodation 32 B, Chinese tourism visiting usa 32 B , Chinese buying U S houses 40 B, if you added it all up, China only has surplus with USA only around 140 billion dollars.

  16. MSCI all world index (EX-US): You remove the U.S. from the equation the market peaked out Jan 2018, they have not been anywhere near that since. On that index they are nearly 2200 during that time frame and now today sitting at what is approximately, let's say 1800 or so. They are off from the peak from where it was, even when you add in the U.S., we are still below the level of which we saw over a year and a half ago, that is not a strong economy, that is not a strong market, that is not fundamentally good considering the fact we have had all this stimulus, negative rates in so many countries.

  17. Let's see, illegal aliens, import tariffs, drug prices, Healthcare costs, welfare and public housing are all draining everyday workers assets..Otherwise the economy's doing great for those paying other people's bills, TAXPAYERS !!

  18. If you're NOT caught lying, you get away with it. If you're CAUGHT lying red-handed,
    you will say it was a SLIP OF THE TONGUE.

  19. Trump is a great deal maker!

    Peter knows the answer in his heart.

    There should be no deal, Trump needs time to buy out time allows corporations move their supply chains. Meanwhile, if China fulfilled all request from U.S. (Personally believe impossible), then the deal can signed.

    This is the only way Trump will win the next election.

  20. Yeah, America is… "the best game in town." So what if the rest of the global economy is burning down around us? Blame it all on the China Trade War (which amounts to about 5% of the U.S. GDP). If anything goes wrong, China did it!!!

  21. The 10 year bond yield is where investors go when they expect a downturn. One, its a safe haven out of equities which fall hard in a downturn. Two. they can lock it the current yield anticipating yields will fall as the Fed cuts rate. Three, when the Fed does cut rates, the price of the bond goes up . In short, you avoid getting caught in the stock market crash/correction, you are earning a interest rate above the Fed rate, three, your asset price has gone up.

    For Navarro to suggest the inverted yield is a bullish sign is peak stupidity. Investors rushing into the 10 year treasury bond is a sign the collective market thinks a recession is coming. Why would you buy the 10 year bond when the yield is more on the 2 year bond? Your supposed to be compensated for the extra risk of lending your money out longer.

    Dont think the economy cant have a recession because 'Trump is a businessman'. In fact, a recession is probably will happen. Dont listen to Trump and his staffers, as they have a vested interest in portraying the economy as amazing.

  22. Navarro and Powell want the general public keep their money invested in market! While Bezos and mark zuckerberg selling their shares like crazy ! Ppl buy Gold amd Silver !!!!!!!!!

  23. I sure hope peter is not related to anal anna Navarro because she`s like a talking dog. a lot of bark with no message.

  24. 1:25 – "Let me give you 60-second bullish forcast…." "Can you make it 30 seconds?"
    THIS is why Joe Rogan is the king of long-form interviews!!! G.D. Fox! Go below the surface!! I might was well listen to Morning Edition on NPR.

  25. Anyone who believes he knows what the Stock Market is doing is deluding himself. The Stock Market is a perfect example of the "Wisdom of Crowds." The aggregate intelligence of all the players in the Stock Market is orders of magnitude greater than any pundit and any group of pundits. Historically, market fluctuations are in the noise.

  26. 2 years and usually another event, usually causes the recession, the yield curve just allows it… Now if they spring their "other event" you know who to blame…

  27. I been saying for a year now we will never be in a recession. Ever since prez trump cut regulations, made us a energy power house, cut corporate tax. Also our GDP will always hover around 3% from now on. Not at 1% when obummer was in office.

  28. Of course, in his book, Navarro argued that an inverted yield curve was a good predictor of recessions, that even a flat curve was a predictor, and mocked business leaders for ignoring the flat yield curve that preceded the last recession. I wonder what changed?

  29. peter is on fire. no one can interview him cause he never answer questions . how about Opening a press conference where you can repeat whatever you want instead of come to a interview.

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