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Moody’s Chief Economist John Lonski on the impact of Asia and Europe on the U.S. economy and trade.
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We won't hear.
Do do you ever wish John Lonsky that perhaps Warren Buffett.
And some of these other -- were just removed take a holiday from that are observations.
Warren Buffett is genius who made billions of dollars not by shorting the market you know but by mostly going long -- opportunity.
He's such a genius I think -- we would really appreciate.
His if I did not.
I asked to what we should be doing right now what we're doing wrong you know Iraq absolutely.
Although he has proper one idea which reject all -- -- -- Which is well actually I shouldn't say that what I reject is what the president's proposing.
What Warren Buffett is.
Suggests or raising taxes this for the super rich.
Buying you know I'm -- -- of -- -- -- tax history -- but of course the super rich are now defined as anybody making more than 250000.
Dollars -- -- -- six straight sessions with the Dow Jones industrials elected John inspection.
Moody's -- -- here.
As the chief economist.
-- that out that did mean to neglect and anyway the institutional law.
-- there.
The the S&P good but now I mean.
We're -- produce significant erosion here.
Yes we are in a lot of this is because of worry regarding which had been overseas you know tonight at 10 o'clock we're getting -- released -- China's GDP which we -- -- -- the past.
Media expectation is it's gonna slow from eight point 1% to seven point 6%.
-- were over there are some outlined work talking about euros worth of -- 7% or less.
And and and the fact is.
-- -- -- China is a producer.
Nation.
And in everybody's getting kind of excited about.
The fact is -- they were a consumption.
Nationwide consumer nation as we are.
I could see in the -- -- all excited about -- goal of Twitter.
But I don't understand -- wish it too reasonable too worried about -- production economy that is slow.
Well you know China does import quite a bit more so than in the past in the United States is not one of the you know it's not his -- of -- -- -- yet I had enough -- -- quite adept at about 300 billion ago but you know that in the reality is that US exports to emerging market -- that includes China and India.
Will -- US exports to Europe.
And oddly enough despite all this bad news about -- -- what we find.
Is open that first five months of this year US exports to emerging market Asia have grown more slowly.
That exports to Europe so there is something under way.
In East Asia that is not in the best interest of the US economy.
-- of global economy but one can argue that US trade policies have not been in the interest of the United States for a very long time because people forget the trade deficits.
Actually reduced GDP growth and it's funny how often.
That little -- part of the algorithm.
-- gets lost structured aren't we don't want to forget about the fact how Weber that a lot of the imports that we get from China are actually manufactured.
By.
US multinationals.
We have -- do that's -- -- do production facilities are.
-- -- Unfortunately the person who produces the item in the United States the doesn't have the axis of the financial you are they assemble it -- assemble that.
I'm the one who gets shafted.
Well we all get shafted in the -- it work.
Your reaction to the Fed minutes I mean let's go into the weeds here.
The Fed minutes people are just grousing about the fact they did declare QQE.
Three or something even bigger and bolder.
Your thoughts.
What's it gonna play what if untreated is at 0% the ten year treasury clearly outline as the wanted to get half percent if you give money away cut -- from a helicopter maybe that's what they have to do.
But I think it's really -- -- that not more mention is made of the fact that Paul little the Europeans -- little European Central Bank is -- to stimulate its old recessionary economy what they they don't sense what they've -- at -- decided not to make it fair to provide a premium to the banks that they were trying to stimulated -- let big.
To keep money on deposited -- Central Bank that was a step in the right direction wasn't a global break even think that argument one way or another -- was around about manner.
But I'm still you know very much troubled by the fact you have people in Europe that are upset by the fact that the Euro is now down.
To a dollar 22 when given the state of that economy.
The weakness of the peripheral economies stated ability and whatnot.
The Euro probably should be closer to one dollar and ten cents and it looks like it's headed there and it's sort of interest or in -- direction of lower.
A look at the if it -- -- the ten year note.
The US treasury.
Tenure is.
I was sort of I don't wanna map then the thirty year mortgage -- three and a half percent I might add that to be double -- corporate bond -- low with -- 65 to single a bond yield lowest since 1958.
And mortgage mortgage applications last week when doubt -- -- them.
We're gonna sort this thing out yet John -- come back sir thanks --
