WEBVTT 00:00:00.799 --> 00:00:05.499 NORTH KOREAN PROBLEM? WE WILL SEE WHAT HAPPENS. 00:00:05.633 --> 00:00:13.065 WHY DOES CHINA'S CURRENCY POLICY HAVE ANYTHING TO DO WITH NORTH 00:00:13.200 --> 00:00:15.165 KOREA? SHOULD IT HAVE ANYTHING TO DO 00:00:15.300 --> 00:00:18.665 WITH THE NORTH KOREA? >> IT MAY BE PART OF THE OVERALL 00:00:18.800 --> 00:00:19.999 RELATIONSHIP, BUT CHINA IS THE KEY. 00:00:20.133 --> 00:00:23.232 CHINA IS THE KEY. THEY CAN STOP THIS IF THEY WANT 00:00:23.366 --> 00:00:26.265 TO BECAUSE OF THEIR CONTROL OVER THE NORTH KOREAN ECONOMY. 00:00:26.400 --> 00:00:32.365 AND BY THE WAY I WOULD POINT OUT -- I KNOW THIS WILL COME OUT 00:00:32.500 --> 00:00:33.932 LATER ON, BUT THERE ARE ARTILLERY ON THE BORDER BETWEEN 00:00:34.066 --> 00:00:36.699 NORTH AND SOUTH KOREA THAT CAN REACH SEOUL. 00:00:36.833 --> 00:00:42.365 WE CAN'T TAKE THEM ALL OUT -- THIS IS -- THIS MAY BE THE FIRST 00:00:42.500 --> 00:00:46.932 TEST OF THIS PRESIDENCY. BUT CHINA CAN SHUT THEM DOWN. 00:00:47.066 --> 00:00:51.499 WHETHER THEY'RE CURRENCY MANIPULATORS OR NOT, WE SHOULD 00:00:51.633 --> 00:00:54.799 EXPECT THEM TO ACT TO PREVENT WHAT COULD BE A CATACLYSMIC 00:00:54.933 --> 00:00:57.865 EVENT AND THE NORTH KOREANS KEEP MAKING PROGRESS. 00:00:57.999 --> 00:01:04.665 THEY HAD A FAILURE YESTERDAY. I'M NOT SURE -- 00:01:04.800 --> 00:01:05.632 >> DO YOU BUY THE SABOTAGE THING? 00:01:05.766 --> 00:01:08.999 >> I DON'T THINK SO, BUT I WOULDN'T RULE IT OUT. 00:01:09.133 --> 00:01:11.699 BUT AT THE SAME TIME, THEY HAVE MADE STEADY PROGRESS. 00:01:11.833 --> 00:01:14.365 WHILE WE HAVE MADE AGREEMENT AFTER AGREEMENT AFTER AGREEMENT. 00:01:14.500 --> 00:01:17.699 CHUCK, HOW MANY TIMES ON THIS SHOW HAVE WE SAID, WE HAVE NOW A 00:01:17.833 --> 00:01:20.665 COMPREHENSIVE AGREEMENT WITH NORTH KOREA AND SO I'M NOT 00:01:20.766 --> 00:01:23.298 BLAMING TRUMP FOR THIS. I'M BLAMING REPUBLICAN AND 00:01:23.433 --> 00:01:28.565 DEMOCRAT PRESIDENTS OVER THE LAST 20 YEARS WHILE THEY HAVE 00:01:28.700 --> 00:01:31.799 CONTINUED TO MAKE PROGRESS. >> IS THE CARROT AND STICK 00:01:31.933 --> 00:01:36.065 APPROACH WITH CHINA WORTH DOING? IS USING OUR TRADE PRACTICES OR 00:01:36.200 --> 00:01:40.498 THESE CONVERSATIONS ABOUT CURRENCY WORTH HAVING THESE 00:01:40.633 --> 00:01:44.132 DEBATES IN ORDER TO INFLUENCE THEM ON NORTH KOREA? 00:01:44.266 --> 00:01:46.865 >> TO PREVENT NORTH KOREA FROM HAVING A MISSILE WITH A NUCLEAR 00:01:47.000 --> 00:01:48.499 WEAPON THAT COULD STRIKE THE UNITED STATES AND WE WOULD HAVE 00:01:48.633 --> 00:01:54.065 TO RELY ON OUR ABILITY TO INTERCEPT AND -- BY THE WAY I'M 00:01:54.200 --> 00:01:56.599 TOLD THAT WE HAVE THAT ABILITY IS STILL RISKY BUSINESS. 00:01:56.733 --> 00:01:59.365 THIS IS -- THIS IS REALLY VERY SERIOUS. 00:01:59.500 --> 00:02:06.065 THIS GUY IN NORTH KOREA IS NOT RATIONALE. 00:02:06.200 --> 00:02:09.265 HIS FATHER AND GRANDFATHER WERE MUCH MORE RATIONAL THAN HE IS. 00:02:09.399 --> 00:02:13.299 >> WHEN YOU'RE DEALING WITHIN A IRRATIONAL ACTOR, WITH NORTH 00:02:13.433 --> 00:02:16.232 KOREA THE MILITARY OPTION IS ON THE TABLE BUT WHEN YOU'RE 00:02:16.366 --> 00:02:19.732 DEALING WITH AN IRRATIONAL ACTOR, DOES THAT MAKE THE 00:02:19.866 --> 00:02:24.365 MILITARY OPTION SOMETHING YOU DON'T WANT TO DEAL WITH BECAUSE 00:02:24.500 --> 00:02:26.632 YOU KNOW HOW HE'LL RESPOND? >> I THINK WITH THE PROXIMITY OF 00:02:26.766 --> 00:02:31.165 THE NORTH KOREAN ARTILLERY TO SEOUL, A CITY OF HOW MANY 00:02:31.300 --> 00:02:35.965 MILLIONS OF PEOPLE? BUT AT THE SAME TIME, TO RISK A 00:02:36.100 --> 00:02:38.465 SITUATION WHERE THEY HAVE THAT ABILITY AND WE RELY ON OUR 00:02:38.600 --> 00:02:42.965 ABILITY TO INTERCEPT, THIS COULD BE THE FIRST TEST, REAL TEST, OF 00:02:43.100 --> 00:02:44.765 THE TRUMP PRESIDENCY. BY THE WAY,