tv Your World With Neil Cavuto FOX News September 21, 2017 1:00pm-2:00pm PDT
on fox news channel. the dow with a downed day. don't blame air aero space and defense stocks. ten of them hit all-time highs after the president's remarks. "your world" with neil cavuto starts right now. >> neil: thank you. i'm neil cavuto, this is "your world." what in the world was the president able to do that so many of his predecessors in both parties were not? ever since north korea started agitating with a nuclear future, the presidents going back to george bush sr. tried to reign them in by getting the chinese to reign them in but they failed. again and again through george bush sr. and bill clinton and george w. bush and barack obama. they failed. again and again. that was until today. indications from the president of the united states that china's central bank has taken
control of matters to say cease and desist, freeze all of activity with north korea. that's a big deal. because it's not like our federal reserve just barking out orders to like bank of america or citigroup to freeze funding to people. but the china central bank is a different story. this might come up with nikki haley speaking at the united nations. for now, we want to give you how big of a deal this could be going forward. it just might avoid war, which is probably a good idea. kevin corke in new jersey where the president will be enroute not far from now. sir? >> you're right. the president was about as plane spoken as you can be on this topic. he called it a disgusting practice that is tolerance for funding the renegade regime in pyongyang. as you said, we've seen a break through to that end. clearly the president is trying to drive kim jong-un to the
bargaining table. in doing so, he's going to have to lean on those that continue to fund his economy. >> a new executive order will cut off sources of revenue that fund north korea's efforts to develop the deadliest weapons known to human kind. the order enhances the treasury department's authorities to target any individual or entity that conducts significant trade of goods, services or technology with north korea. >> so what is happening here? this answer enhances the treasury's ability to provide goods and technology to the north and allows the u.s. to identify new industries including textiles, fishing and manufacturing as potential targets for future actions. as you pointed out, he thanked president chi for stop doing
business with north korea. that is a major action. for more on what else we learned today, let me share of what we heard from the treasury secretary, steve mnuchin. >> these sanctions will be forward looking and apply to behavior that occurs following today when president trump signs the executive order. foreign financial institutions are now on notice that going forward, they can choose to do business with the united states or with north korea, but not both. >> this is huge. what he said there is incredibly important. what you did in the past is the past. we recognize going back to clinton, bush and obama, there was some tap on the side of the nose business between china and north korea. now you do business with them, that's it. china, based on what we learn today, they have chosen a side. >> neil: now getting them to
honor that. >> yeah, absolutely. trust and verify, this is a big deal for a number of reasons and also strategic reasons. keeping this in mind. bottom line, you cut off the money to bring pyongyang to the table or force them to starve. we'll see what happens. >> neil: kevin corke in nuke. that's the big question. will china deliver on this and doing what they say they promise they will do. john bolton, again, quit a few of his predecessors tried to same thing. didn't happen. what changed? >> i think trump's very clear statement that denuclearization is the only option for the koreans. i think he means that for iran, too. contrary to what susan rice, barack obama's former national security adviser said we can live with north korea with nuclear weapons, i don't think we can. china faces the question which
they have not nieced before. do we really crack down on north korea and deal with the consequences of that or do we risk the possibility that the united states will use military force? the chinese bank statement is significant. the sanctions are -- they come in a neutral tone. they're aimed at china and russia. they're aimed at the countries that do the most business with north korea. >> neil: so what changed on china's part? they've been doing this for years. change your posture towards north korea. what changed? >> i think they thought they could get away with the two-faced posture. and president xi having dessert as he launched cruise missiles towards syria did something. he's got a difficult line to walk. he doesn't want to do anything
that crosses trump. on the other hand, he doesn't want to look like a running dog of western imperialists. we'll see what happens. it's hard to track down this chinese banking system. it's extremely intricate. the possibility is that -- >> neil: you think we can verify what they're doing? we hope they deliver the goods here, but would we be able to see any black market activity if they're trying to sneak around it? >> if it's truly black market we won't. but this is a test for china. they have unparalleled economic influence over north korea. if they bothered to exercise it 25 years ago, we might be in a different place. they have run out of road to kick the can down to. it's show time here for china. >> neil: the wild card, many seem to think this president is a wild card. pulled a ronald reagan like with the star wars defense shield that got to the soviets to the
table. they got them to talk. how much of a factor was it that the president was not leaving military options off the table, talked about negotiating, talked about diplomatic efforts and would exhaust them and left open that possibility. >> it's incredibly significant. if prior administrations had been this tough, again, we might not be in this situation where none of the alternatives look very good. far better to do it now and to make it clear, we do not accept a nuclear north korea. if that is the outcome, you can either resolve it peacefully or wait for us to use military force. trump is saying to china, we can do it the easy way or the hard way. you call it. >> neil: what if kim jong-un really is going rogue, crazy rogue and china can't control it and this effort is too late? >> i think we're in a very risky period. i don't think he can hit targets in the united states weather --
thermonuclear weapons. china should have come to this realizization a long time ago. short amount of time but the reality is clear. >> neil: thanks, ambassador. one event that stuck me late last night when s&p down graded china's debt. they're still at 8 plus. it wasn't as if they were going to be knocked down to junk. but what telegraphed the concern here in the financial markets, s&p saying they had too much debt. china was piling on too much debt. you add that to this, maybe you have the ingredients of china trying to straighten it out. former goldman sachs senior partner, peter kiernan, author of "becoming china's bitch" which wins the best title of a back in the past year. what do you make of that?
china knows, you know, a little bit about its financial interests and doesn't want them compromised. all of a sudden, the debt is down graded. it's piling up debt. now they have a president that isn't taking this on. what do you think of that? >> we're in unprecedented waters. for them to comply in the way that they have with their central bank action is a very big deal. >> so now we always ask questions, you've have covered the question, whether they will deliver the goods and do it. we learned in the past after you go after individual banks here in china that it's like the cockroach thing. if money is frozen in one area, it opens up in another. this is chinawide now, we're told. will it be? >> this is an extraordinary time. but there's rivers of cash flowing into north korea.
one of the things the chinese have done effectively outside of their banking system is found ways to get money and cash into north korea. that's going to be very difficult even with the sanctions to stop. their examples, the pressurery department monitoring a shift and turned off a transponder, load itself with coal and made its way to russia and then china. that's a ship that "never sailed." there's fishing rights with products only made in north korea. there's a lot that has to be contained here beyond the "official banking system." this is a major start. >> neil: as long as i've covered china, not as long as you because you're so much older, but one of the things i've discovered is that i can't trust what they're saying. ether with gdp reports saying
they grew at 13 or 14%. i don't doubt that they are growing more than we are, but even lying about factory development around the country and then strikers, the disappear in the outer reaches of china. so with a grain of salt. now i'm hearing about this commitment that they're going to police what chinese banks are doing as far as north korea. how can i make sure they're doing that? in other words how do we check that to your whole point of the trust but verify thing that we used to do with the soviet union? >> china has an avert transparency. when you look at the banking requirements that have been laid out with the sanctions and the letter sent by the central bank, there's still wide open questions. if you're a north korean, you owe money to a chinese bank, do you have to pay it right away? if so, where you going to get
the funds to make the payment? how do you make the payment? these are not clearly addressed. there's a lot of avenues open. so i view this as a directionally exciting thing. i do not think you should have any sense of confidence that over the long-term we're going to block these rivers of cash that are running into north korea from china and russia. it's a taller order that will be addressed by new sanctions to come. >> thanks, peter kiernan. overall brainiac on all things having to do with the world. we're waiting with nikki haley in the united nations. i mentioned earlier on, the s&p down grade in china. might seem vague to you but that start add growing concern that one of the world's fastest growing economies is slowing down or might be heading serious head winds here and piling up debt. our market felt that as well. we were down today interrupting
a nice winning streak. it wasn't as bad as it could have been. we'll look at that and puerto rico, the island without power and apparently could be that way for months. had. the classes, the friends, the independence. and since we planned for it, that student debt is the one experience, i'm glad she'll miss when you have the right financial advisor, life can be brilliant. ameriprise ♪ ♪ ♪
>> neil: all right. we're waiting to hear from nikki haley. her latest take on the administration's double barrel approach with north korea and added sanctions. the other one working with china to obliterate any banking relationship that country has with north korea. the central bank of china indicated telling all financial institutions in china when it comes to pyongyang, it stops and stops now. president trump is approving a disaster declaration for puerto rico. he says the island has been obliterated. the island needs it.
steve harrigan with more. hi, steve. >> neil, they need help in many different areas and they need immediate help, this is the flooding around some apartment complexes outside san juan. none of these people have electricity. nobody on the island has electricity. some sitting up in their apartments with wind damage and water damage. as far as the situation here is on the ground, help is on the way. there's coast guard ships bringing in water. the airport isn't open yet. should be open for aid tomorrow. the biggest problem here across the island is the power grid. it's been weak for decades, it was hurt by hurricane irma two weeks ago and now was demolished by this storm, hurricane maria. it's been a do-it-yourself operation. police make quite a wake when they come down the street. it's a do it yourself operation.
we pull up power lines by themselves. using hammers and nails. a lot of machetes. if you like right there, there's some people that have been cooking out this morning. they have no power and very little resources. so the women chopped up machetes or hammers play wood and use the satellite dishes as wind screens and make a barbecue. so it's hard to get water. there's gasoline in short supply. you're in the dark. it's not easy to keep in good spirits. i have to say, people so far have been extremely resilient. a couple of incidents reported of looting. some grocery stores, their shelves were empty during the storm. on the whole when you have no lights and people in tough situations, we have not seen outbreaks of violence. the real test is getting aid to the people that need it and
getting it to them quickly. back to you, neil. >> neil: and the power thing. when i hear months and even in san juan, that is a whole other problem. >> you're right. keep in mind this island is technically bankrupt. they only had $32 million in their emergency fund. their power grid is notoriously weak. irma just glanced the island and a million people lost power. they started to lose power from this storm when the storm was 50 miles offshore. but to think that the entire island is dark is still stunning, this is a u.s. territory. that's the shape it's in, neil. >> neil: amazing. thanks, steve. steve harrigan. all right. president obama's director of national intelligence, james clapper said it's possible that president trump's voice has been picked up on the wiretap with paul manafort. isn't this the same group that
said donald trump was all but lying when he talked about himself being tapped? his phones being tapped in his phones being recorded? who is zooming whom after this. what powers the digital world. communication. that's why a cutting edge university counts on centurylink to keep their global campus connected. and why a pro football team chose us to deliver fiber-enabled broadband to more than 65,000 fans. and why a leading car brand counts on us to keep their dealer network streamlined and nimble. businesses count on communication, and communication counts on centurylink.
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>> neil: all right. maybe it wasn't such an exaggeration when the president talked about his phones being tapped and then you learned that his campaign staff said that he had numerous conversations with then candidate donald trump. that donald trump was in on the tapped phone thing. especially when he was talking to manafort so many times. who is zooming whom here? blake burman at the white house. what's going on? >> jim clapper saying last night
that it's possible that a wiretap might have picked up a conversation between president trump and paul manafort. it's very important to point off the top here, it's unclear at this point as to when this possibly could have occurred. but clapper was responding to a cnn report that said manafort had been wiretapped before and after the 2016 election. according to that report, the first wiretap dates back to an investigation that started in 2014 looking at work manafort did. and the second one, that warrant was granted by the secret fisa court last year as a part of an investigation into possible ties between trump campaign aides and russian operatives. manafort was brought in in march of 2016, elevated to the campaign chairman a couple months after that and then he left the campaign in mid august. here was clapper last night on cnn talking about that possibility.
>> is it possible the president was picked up in a conversation with paul manafort? it's certainly conceivable. >> is it likely? >> i can't say. i wouldn't want to go there. but i will say it's possible. >> neil, clapper served under the obama administration for six years or so. he said he was not personally aware of a fisa warrant on mr. manafort. kneel? >> who would have been. thank you. mark steyn is here, best selling author. what do you think? >> james clapper is a liar and in many cases he would have been prosecuted for perjury over some of the things he said in recent years. i'm not minded to believe him on this. the fact is, paul manafort has been wiretapped by the u.s. government since 2014.
>> neil: 2014. >> yeah. that's almost three years. he's never -- never mind convicted, he's never been charged with anything. so we have a situation in a supposedly free seven governing civilized society if the government can wiretap you for three years and never have to bring a charge or find any crime that you've committed. >> neil: i get different reads on whether it was a ukraine connection and all of that. certainly whether people knew who he was or not at the time when he ascended to the role of campaign manager. you had to think that there were conversations, you know, hey, we have these wiretaps. and they could very well involve the guy running for president of the united states. >> yeah, the fisa court thing is a joke. they rubber stamp. all you need to do is be converting with a foreigner as
you are doing right now. >> neil: or vice versa. >> that would be grounds for a fisa warrant against you. >> neil: who would know about it? >> nobody would. the ruling party using the cover of national security rules to get the goods on its political opponents. if you go back to one of their meetings that they wiretapped, a prince from the united arab emirates came to town to meet with obama. he blew him off. he thought he would meet with the incoming government so he went to trump tower. mysteriously, the obama administration said they needed to eves drops. there's no reason why this prince is a national security concern to the united states. they eaves dropped on the meeting to get the gets on trump. that's the issue here. there's no russians, no -- i take the view that, you know, paul manafort is doing business with a lot of sleazy oligarks
and stuff. but that's not the issue. >> neil: i understand. but mark, the one thing that would come to mind, the intelligence officials, like clapper. they would have to know. he was denying months back that donald trump ever appeared in a tape or something like that. he had to know, right? he had to know there was certainly a distinct possibility that this could have been going on and you know, the president was swept bite. >> absolutely. that's the other problem here. clapper has been lying with impunity to congress -- >> neil: he was treated like a saint in the media. >> and he knows he will never be called on it. then you have somebody like paul manafort. they pick his front door, go
search his wife to see if she has an ak-47 and they go through the house not to get the goods on him but just to find a process crimes. you know, a little thing -- >> neil: you think this is all about, you know, putting pressure on him to do what? to circle in on trump? what? >> absolutely. they're trying to turn him to get to trump. people think this is clever. it has a long history in america of, i would say, the corruption of federal justice. he knows that if he's dragged into court, your friend, conrad black likes to point out, that -- >> neil: a publisher. >> in federal court, the united states government wins 97% of their cases, which is a victory rate that kim jong-un's system would envy.
it's not respectable. so they know that if manafort is dragged into court, he's done. the idea is to -- >> neil: squeeze him. >> yeah. it's not funny. i know people think it's cute. the fact is we're in real banana republic territory. >> neil: and we have the officials originally involved and denies and denying. it's possible. >> and mortifying the story, six months on, another six months on, another six months on. there's no russians in the russian investigation. what there are are political operatives of the obama administration spying on their political opponents. >> and real quickly, we know that mueller is digging into private conversations that the president has had and meetings he's had. this clearly does seem to be a focus on the goal of going after the president. >> absolutely. the grounds for letting hillary off is that you couldn't deny the democratic electorate their
candidate in an election year. what they're doing here is denying the elected president of the united states is opportunity to govern effectively. that's disgusting. >> neil: mark, good seeing you. crazy stuff. as he's talking, we're keeping an eye what's going on in new york at the united nations. we'll be hearing from nikki haley there, which she will make of this double barrel approach the administration has taken to force the north koreans to cease an desist. it's a double-barrelled approach that in president has succeeded in doing it. whether you like or not like donald trump, the chinese have blinked and the north koreans should be worried. more after this. along with support, chantix (varenicline) is proven to help people quit smoking. for me, chantix worked. it reduced my urge to smoke. compared to the nicotine patch, chantix helped significantly more people quit smoking.
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>> neil: ignore everybody else. that guy you're looking at there, he's going to be the point man when it comes to taxes and whether yours get cut. kevin brady in 60 seconds. some things are simply impossible to ignore. the strikingly designed lexus nx turbo and hybrid. lease the 2017 nx turbo for $299 a month for 36 months. experience amazing at your lexus dealer.
>> neil: all right. a press conference momentarily from u.s. ambassador to the united nations, nikki haley. ahead of that, tough take with iran. that and what is going on in north korea linked more than you know. colonel, we're looking at dropping this agreement. a lot of people in the united nations say you don't do that.
apparently we feel there's enough evidence to suggest that it's not worth the paper it's printed on. you think we should rip up that agreement? >> certainly, neil, as ronald reagan said, trust and verify. nikki haley was in vienna and she said you need to go to the military sites in iran. we think they're cheating. they said no. yes, they've been killing us since .
>> with the sanctions on north korea, it only impacts those with north korea. if china does business with them, yes, it will impact them. if there's countries in africa that will do business with north korea, it will impact them. it depends on countries that choose to support north korea over the rest of the world that is asking them not to. in reference to iran, you have a couple of processes that take place. october 15th, the president has the decision to make on whether to certified or de-certify. that is u.s. law. has not to do with the iran deal. u.s. law requires the president every 90 da is to decide whether the iran deal and other elements of the u.n. resolution, which would include ballistic missile testing, arm smuggling. support of terrorism. it asks the president to look at all of those things. if he still thinks that the deal is in the best interest of the united states, then he
certifies. if he thinks that the deal is -- that the situation is not in the best interest of the american public, then he doesn't certify. at that point, it goes to congress. he works with congress on how to reshape the situation. the iran deal and u.s. law are two different things. >> are you saying he could desert fight without withdrawing from the deal? >> that's right. that's the option he has. that's the law that came into effect to allow that to happen. what i will tell you from a u.n. perspective, what we're looking at and what you're going to hear us vocal on, the fact that 2331, the resolution in place, what we saw was that basically it wrapped in with the nuclear deal. it said if i ran did any of these things, it would be in violation. since then, they'll have violated all of those things. the support for terrorism, the
through that porous border. the chinese do control it. i don't think they're doing to cut them off totally. they don't want a migration problem, they don't want a war on the peninsula. they don't want all of this bad stuff. >> neil: all right, colonel. thank you for your patience. with all of this breaking news, very good seeing you again. we're looking at tax strategy. we're told probably wednesday we'll get details of the tax cuts to come, all the rates being proposed. a lot of back and forth on this. the guy that did this before it became cool, kevin brady. chairman, thank you for your patience with all of this breaking news. will we get a detailed plan wednesday? that seems to be the betting. >> yeah, mid week. i'm not sure the date has been set. i think it's important for a couple of big reasons. the senate and the president will stand together on a unified
tax reform plan that is bold, grows paychecks in a major way. it will give us momentum to do our work at the committees and move forward to deliver it this year. the final key point whether you're a local small business or a family looking for the simply post cart-style system will see the details to get us to that point. it's going to be an important week going forward. >> neil: we're told the president is still very keen on a 15% corporate rate versus 35% now. are you? >> we can't read out the details. >> neil: go ahead. whisper it. >> i know. we are going -- between you and me. >> neil: right, right. >> so we're determined to deliver the lowest rates on local businesses modern history. and going further, we're going to redesign the code to compete, win anywhere in the world. you'll be pleased. >> neil: if the rates that come
out of the white house are not across the board and everybody gets their taxes caught, would you be disappointed? >> i would. here's why. it's incredibly important, i think, that we close loop holes, illuminate special provisions and lower tax rates on every american. it's very important for growth in the economy, but it's as important today for growth as it was when president kennedy and president reagan working a bipartisan way delivered those same type of tax relief provisions as well. >> neil: if i'm reading the press right, you might be disappointed. the upper income won't be part of it. >> you know, we're continuing to work on this. can't read out the details. we're going to continue to fight to lower those rates. >> neil: mortgage deductions still intact? >> it is. we're looking for ways to
improve homeownership across america including middle class as well. so i think you're going to see -- that will be left really for the committee's, senate and finance, ways and means committee to finalize and design. which is why this weekend i'm bringing back the ways and means republicans and spend two days working through final details on the tax reform plan ahead of the frame work with the president and the senate. >> neil: state and local taxes and their deductibility gone? >> we're going to continue to make the case that we can keep the status quo today where every american has artificially high tax rates and we subsidize each other or we can lowter tax rates for every american, whether they itemize or not and we just all pay our own at the local level. we're going to continue to make that case for a simply fairer tax code. >> neil: that sounds like the deduction that you had,
beneficial to those in high income states like new york, california, that might be on the table. >> so we're going to -- i'm convinced we can lower tax rates for every american, every taxpayer. and while we're eliminating the special provisions that keep tax rates high on every american. >> neil: including that provision. >> yes, sir. >> neil: okay. is it your sense now that these tax cuts have to be revenue neutral? paid for and not bust the budget ten years out? i get a sense from orrin hatch and the senate, the financial committee, you know, moderates for lack of a better team like rob portman of ohio, sir, that they should be. then i hear from more conservative minded folks, you're more -- others in that camp that say no. by definition that would limit the impact of the tax cut.
>> so i think tax reform done right can move us toward a balanced budget. i think it's incredibly important that the senate with senator corker and senator toomey have reached agreement that this more accurately reflects economic growth from a tax reform and really gives more honest score keeping in the budget -- >> neil: the budget for about $1.5 trillion in tax cuts. are you comfortable with that over ten years? >> what that does is allow us to get meaningful growth and allows us to move towards permanence. i preach about it and so does the speaker a lot. we want to make bold changes. we want families and businesses to depend on it. so i want as much permanence that i can get through this tax reform. >> neil: how about making them retroactive? any talk of that? >> so continuing to work on
that. it all fits in with the final details of this. the end of the day, i think this will be left to the committees to finalize the plan. the president and the senate house tax writers, we won't lay out every detail. we want input from the conferences. that's the right write a to do it. >> neil: the president has made overtures to democrats, chuck schumer, nancy pelosi on everything from daca to this effort to lift the debt ceiling and attach hurricane relief to it. you as a texan were okay with that at the time. i do wonder whether in the move to win over democratic votes the president could have promised the upper income don't get a tax cut and that would win over democratic votes and might tick you off but could get democratic votes. you think it could? >> so remains to be seen. i'm not convinced the president made any deal like that. >> neil: he did say, sir, that
he wasn't keen on a tax cut for rich. they would pay about what they're paying, maybe a little more. whether that was an overture to win democrat votes, i don't know. but he did say that. >> i'll leave that to the president. i'll make this point. if you're serious, republican or democrat, about lowering our rates, making america competitive and delivering on a big middle class tax cut, we're serious about working with you. i'm hopeful democrats will stay at the table and see if we can find some common ground. >> neil: you have more wiggle room in your committee, the house ways and means than your counterparts in the senate. so are you afraid whatever you come up with or draft in the house will be toned down in the senate? >> look, there's a process here, this is a major lift. i think having the president, the white house, the house and senate tax writers together on the same page is one
unprecedented and lays out the frame work of where we want to get. will these committees have the ability to adjust and target? absolutely. we want that to happen. that's a healthy process going forward. how bold we go is critical going forward. all this accelerates starting next week. >> chairman, how does this cassidy-graham healthcare rework plan affect what you want to do? they want to have a vote, mcconnell and the senate wants to have a vote next week when this is coming to fruition in washington. looks likes plane backed up at reagan national. what's going on? >> isn't this the way washington always works? >> you're right. >> where all of these things tend to collide on the exact same afternoon.
look, i wish the senate well. if they -- >> neil: could that help you? if that were to pass, i want to be clear, is that gets done before the tax cuts, that would be a surprise benefit for you, wouldn't it? >> i think on the momentum side, yes. on the tax side, probably a wash. look, it doesn't that i can the $1 trillion of obamacare taxes out of the economy. i wish it did. i hope the senate can deliver on healthcare and tax reform. >> neil: chairman brady. thanks very much. whether the people agree or disagree, nobody has worked harder on the tax cuts coming to fruition long before anybody was running before president, it's you. thank you very much. >> thank you. >> neil: we mentioned senator cassidy will be joining us
tomorrow. see what he makes of what the chairman pointed out and what he makes of jimmy kimmel calling him a liar. all of that tomorrow on "your world." see you then. >> bret: president trump cranks of the financial pressure on north korea. if he is the bad cop, south korea's president plays the good cop today. why california's attorney general's of the trump border wall is unconstitutional. is "special report" ." welcome to washington. i am bret baier. this is the first hour of a two hour edition "special report." we begin with the international hand-wringing over north korea's nuclear ambitions. today the leader of the u.s. ally with the most to lose in a shooting war adopted a softer tone than president trump. th