ROAD.

>> THANK YOU, GARRETT.

IT'S BEEN A GREAT YEAR FOR THE

U.S. ECONOMY AND THE STOCK

MARKET.

SO WHAT'S IN STORE FOR 2020?

MY NEXT GUEST IS PRETTY

OPTIMISTIC AND HIS TRACK RECORD

IS PRETTY GOOD.

WHITE HOUSE TRADE ADVISOR PETER

NAVARRO JOINING ME FROM THE

WHITE HOUSE.

GOOD TO SEE YOU, HAPPY NEW YEAR,

MY FRIEND.

>> WHAT A GREAT DAY IN THE

SWAMP, IT FEELS LIKE SPRING, A

GREAT YEAR AHEAD.

DAVID: FEELS GREAT IN NEW YORK

AS WELL.

JUST LAST AUGUST, AS GREAT AS

THINGS APPEAR IN THE ECONOMY,

WITH THE STOCK MARKET, ET

CETERA, I SAW AN INTERVIEW THAT

YOU DID WITH ABC AND YOU HAD TO

TALK MARTHA RADITZ OFF A CLIFF

AND IT WAS LOOMING AND TURNS OUT

YOU WERE RIGHT.

WHAT ARE YOUR PREDICTIONS FOR

NEXT YEAR?

>> THE FAKE NEWS AND THE LEFT

WING COULDN'T WAIT FOR THAT

RECESSION.

DAVID: NEVER HAPPENED.

>> FOR A GREAT ECONOMY.

WHAT I'VE GOT FOR YOU, DAVID,

PRETTY CLEAR.

WE'RE GOING TO GET REALLY GDP

GROWTH, ROBUST.

WE'RE GOING TO SEE DOW 32,000 BY

THE END OF THE YEAR AND WE'RE

GOING TO BREAK 30,000 FAIRLY

SOON.

I PREDICTED THAT SOME MONTHS

AGO.

IF, IF WE GOT PASSAGE OF USMCA

AND WE GOT THE FED TO LOWER

THEIR INTEREST RATES, BOTH OF

THOSE THINGS ARE IN PLACE.

BUT THE BIGGER FORECAST HERE,

DAVID, I'M BASING THAT--

I THINK YOU REMEMBER, I USED TO

DO THIS IN MY OTHER LIFE AS A

MACRO FORECASTER.

YOU'VE GOT TO LOOK AT THE FOUR

DRIVERS OF THE ECONOMY AND THE

GDP ENGINE AND RIGHT NOW THEY'RE

HITTING ON ALL CYLINDERS.

YOU START WITH THE CONSUMER.

THE CONSUMER, BECAUSE

UNEMPLOYMENT IS SO LOW, WAGES

ARE RISING, OPTIMISM IS HIGH.

AND THIS CONSUMER IS GOING TO BE

THE ANCHOR OF THE ECONOMY IN

2020, SO THAT'S NUMBER ONE.

NUMBER TWO, ON THE TRADE FRONT,

WE'VE GOT FIVE TRADE DEALS NOW

IN PLACE.

FIVE TRADE DEALS COVERING TRADE,

WELL MORE THAN HALF OF WHAT WE

TRADE IN THE INTERNATIONAL

ARENA.

JAPAN, SOUTH KOREA, CHINA,

CANADA AND MEXICO, SO THAT'S

GOING TO BE A BOON FOR OUR

EXPORTS AND THEN THE SNEAKY

LITTLE THING, I'M TELLING YOU,

DAVID, THIS IS LIKE -- THIS

SEALED THE DEAL FOR A GREAT

2020, WHEN CONGRESS PASSED THE

NDAA, THE NATIONAL DEFENSE

AUTHORIZATION ACT COUPLED WITH

THE APPROPRIATIONS BILL AND

BASICALLY GOT GOVERNMENT IS

GOING TO BE ONE OF THE ENGINES

AND DRIVERS OF GROWTH,

PARTICULARLY IN SOMETHING THAT I

WORK ON A LOT, THE DEFENSE

INDUSTRIAL BASE, AND THEN

INVESTMENT, WHICH IS THE FORTH

PART OF THE PUZZLE HERE, NOW

THAT WE HAVE ALL OF THESE TRADE

DEALS IN PLACE AND THIS ECONOMY

IS BOOMING, NOW THAT THE

AMERICAN ECONOMY IS BY FAR THE

BEST PLACE TO BE, INVESTMENT IS

GOING TO BOOM.

DAVID: TALK SPECIFICALLY.

>> I'M LOOKING AT A GREAT YEAR?

TALK SPECIFICALLY ABOUT THE

MEXICAN CANADA TRADE DEAL, USMCA

AND HOW IMPORTANT IT IS.

NOT EVERYBODY IS DOING GREAT IN

THIS ECONOMY.

THERE ARE SOME FARMERS, SOME

MANUFACTURERS, WHO ARE HAVING

TROUBLE BECAUSE OF THE TARIFFS

AND THEY WERE -- THEY NOW ARE

LOOKING TO THE MEXICAN-CANADA

TRADE DEAL AS HELPING THEM

INCREASE THEIR PURCHASES, RIGHT,

AND THEIR SALES?

>> WELL, IT'S ALL OF THE TRADE

DEALS PRESIDENT TRUMP HAS

NEGOTIATED FOR AND THE FARMERS

ARE GOING TO LOVE EVERY ONE OF

THEM.

YOU'VE GOT THE JAPAN DEAL, DON'T

FORGET ABOUT THAT ONE, THAT $7

BILLION IN NEW TRADE IN

AGRICULTURAL GOODS.

YOU'VE GOT THE SOUTH KOREAN

DEAL.

CANADA AND MEXICO ARE REALLY

IMPORTANT, BOTH FARMERS AND OUR

AUTO INDUSTRY THAT ARE GOING TO

BENEFIT.

THE CHINA DEAL, WE'RE GOING TO

HAVE--

CHINA'S PLEDGED TO BUY 200

BILLION DOLLARS MORE ABOVE THE

2017 BASELINE OVER THE NEXT TWO

YEARS AND ABOUT A FOURTH OF THAT

IS AGRICULTURAL PRODUCTS SO

YOU'RE LOOKING AT ROUGHLY THE

DOUBLE AMOUNT OF PURCHASES OF

2017.

DAVID: LET ME ASK YOU ABOUT THE

CHINA TRADE DEAL.

BACK IN MAY WE THOUGHT WE HAD A

DEAL WITH THE CHINESE.

THEY BROUGHT IT BACK TO BEIJING

AND THE FOLKS, THE POLLIT BUREAU

RIPPED IT UP, SAID NO GOOD.

>> NO, WE'RE ON TRACK.

THE ONLY THING HOLDING THINGS UP

IS BASICALLY THE CHINESE

TRANSLATION OF THE 86-PAGE

ENGLISH VERSION OF THE DEAL.

AS SOON AS THAT'S DONE, IT WILL

BE RELEASED AND THERE WILL BE A

SIGNING, BUT LET ME SAY THIS

GENTLY BECAUSE I DON'T WANT TO

BE CRITICAL, BUT THE REPORTING

JUST BEFORE I GOT ON, I WAS

LISTENING, WAS WRONG BECAUSE IT

SAID THAT THIS PHASE ONE DEAL

DIDN'T COVER TOUGH ISSUES LIKE

INTELLECTUAL PROPERTY THEFT AND

CURRENCY.

IN FACT, LET ME JUST WALK YOU

THROUGH WHAT--

>> WE ONLY HAVE BEEN 30 SECONDS.

I JUST WANT TO ASK ONE QUESTION

THOUGH.

>> SURE.

DAVID: YOU WROTE A BOOK ONES

"DEATH BY CHINA".

>> A MOVIE, TOO.

DAVID: IN LIGHT OF YOUR VIEWS

AND THE PRESIDENT'S VIEWS, DO

YOU THINK THAT CHINA IS A BIGGER

THREAT THAN IT IS A HOPE OR A

PLUS FOR U.S. INTERESTS?

>> I THINK WHAT PRESIDENT TRUMP

HAS DONE TO HIS ENORMOUS CREDIT

OVER THE LAST THREE YEARS IS

CHANGED THE WAY AMERICANS LOOK

AT CHINA AND THAT'S TO THE GOOD.

I THINK WE'RE MUCH MORE WARY

ABOUT CHINA, BOTH ON CAPITOL

HILL AND ACROSS THE HEARTLAND.

HE'S CHANGED, THEY SAY THE

NARRATIVE ON THIS AND THAT'S

GOING TO MAKE US STRONGER.

WHAT HE'S DOING IS PROVIDING

TOUGHNESS AND THAT'S GOOD FOR

THE AMERICAN PEOPLE AND GOOD FOR

THE HEARTLAND.

DAVID: BY THE WAY, YOU HAVE A

PIECE IN FOXNEWS.COM RIGHT NOW

THAT WE SHOULD ALERT OUR VIEWERS

TO ABOUT DRONES AND HOW A LOT OF

THESE DRONES HAVE PARTS FROM

CHINA THAT COULD BE A SECURITY

PROBLEM FOR US, RIGHT?

QUICKLY.

>> YEAH, QUICKLY, THE DRONES

THEMSELVES, THE PROBLEM WITH A

LOT OF THE CHINESE PRODUCTS THEY

SELL HERE IS ALL OF YOUR

INFORMATION GOES DIRECTLY BACK

TO SERVERS IN CHINA.

WHAT COULD GO WRONG THERE?

I'LL LET YOU GO ABOUT THAT, BUT

LET'S HAVE A POSITIVE 2020.

DAVID: YES, INDEED.

>> A BOOM YEAR FOR THE TRUMP

ECONOMY, HIGH WAGES, LOW

UNEMPLOYMENT, HAPPY NEW YEAR.