down. interesting story. we'll continue to follow it here on the fox business network. that does it for us. "bulls and bears" starts right now. david: u.s. china tensions sending stocks lower for the week. as the president continues to make the case for china tariffs. president trump: we are so far behind and we have been treated so badly. i don't blame china. i blame our past leaders. we need to make a better deal with china. now we'll be getting 10% of probably close to 350 billion. it's a lot of money. china has to do a lot of things

to turn it around. but you will be seeing. it goes on september 1. if they don't do that, i will increase it substantially. david: china vowing retaliation if the u.s. places tariffs on their goods. they say china will not be blackmailed, will take counter measures. >> it depends on what you are going to go for. in theory you want the right number, the perfect tariff level hurts china but doesn't cause a recession. we are not anywhere near a level of tariff that would cause that. even a country that has been --

a company that has been basically exempt. you could bring the iphone production to america. i don't see it causing a recession. if we have a recession for another reason, someone thinks the economy is slowing. that could be the straw that breaks the camel's back. but for now china is falling the hardest. when things heat up their stock market seems to fall a little more. >> i'm not clear how much china is losing. their economy is larger, has been growing incrementally for the past years. meaning its rate of growth has been ticking down year by year. 6.2 or 6.3%.

it's become a self-fulfilling crisis largely generated by this administration for outcomes that remain completely illusive. all we have done is place a tax on american consumers and american companies that import goods from china. hurt american soybean and agricultural producers who had a robust export market with china. and you box china in where they have no incentive. their economy is not suffering because of the $60 billion in tariffs. we keep marching along. and this is one of the greatest policies. david: let's bring in trump 2020 director. marc lotter. the president has been campaigning on the strengths of the economy.

but could mortar rivers pull down growth and hurt that message? >> i don't think so. we saw a strong job report today. 164,000 jobs created. but when you get into the underlying numbers. the wage growth continues to be strong. when you look at the underlying data that was revised. we have stronger wage growth after accounting for inflation which is non-existent which shows you have the american people are not paying for the increased tariffs. it's being absorbed primarily by china. china can get out of it. they just need to deal faithfully with the president, honor the commitments they made and make a deal. >> i think what's interesting is we haven't seen the effects of these proposed tariffs because they haven't set to kick in

until september 1. traders on the floor today said wait until the president reverses. more than half our clothes and shoes are made in china. at some points the american consumer will pay. i'm not saying it's wrong to st. even the president'srics loaf inflation and we have seen the existing tariffs have not been passed on,e heard from american company their chinese suppliers are forced to lower their prices. so most of of this is being and oured on the chinese side. if there is a slight tick-up in consumer pricings, it can be easily absorbed. ultimately this is a gore why

iting tactic. the president is right to con be front the theft of i.t. technology. things they have been saying for more than a year now. china has a way out of this. they have to live up to their expectations fan negotiate a deal. >> i agree with 99% of what you said. until the fed announcement, the market was up, even after the tariffs. this outsourcing to other countries. the manufactures and importers r the price. what started this all was the ii.t. issue.

is it the hope the tariffs can solve that. this is a tit for tat tariff war and have forgotten about the original issue that started this. >> i think the president is adding a lead weight on the issue. the economy is growing much slower than we have seen in recent years, and we are feeling the brunts of this. if this helps bring them to the table, we saw ambassador light highser was there recently. we have talks planned for october and september. maybe they will come to the table and fulfill their agreement to buy agricultural products and stop meant nil shipments to the united states. ultimately the i.t. issue will be a hang yum on the long-term deal. but if they would live up to these agreements they already knead, it will at least show

good faith. >> you know, in broad strokes, what percentage of this stuff is our stuff anyway? this is most of of it. apple chooses to make a phone there because it's cheaper than being made in america it's just a factory to avoid our regulations. what is our stuff versus chinese stuff that's undercutting our prices with? >> i'm not an economist so i don't have that number off the top of my head. but i agree as a general principle the things they are shipping back here are our products here anyway. the president has been clear, if you want to avoid the tariffs, bring your manufacturing back to the united states. but the overlying message is we have to do something about

china. this is a president who is standing strong to make sure something gets done. he won't make a bad deal. if this gets him to a good deal, we have to live with it. david: meanwhile, wait until you hear which newspaper is slamming bernie sanders and liz warren for going too far left. >> immolatele bit tired of democrats afraid of big ideas. republicans are not afraid of big ideas. ♪ all right brad, once again i have revolutionized the songwriting process. oh, here we go. i know i can't play an instrument, but this... this is my forte. obviously, for auto insurance, we've got the wheel route. obviously. retirement, we're going with a long-term play. makes sense. pet insurance, wait, let me guess... flea flicker. yes! how'd you know? studying my playbook?

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>> i happen to believe when i talk about healthcare as a human right that applies to all people in the country under and medicare single payer system we could afford to do that. >> the basic profit model of an insurance company is to take in

as much as you can in premiums and pay out as little as possible in coverage. that's not work for americans inning this country. medicare for all will fix that. david: bernie sanders and liz warren pushing medicare for all at the' debate. but "the washington post" slamming their proposal. reframing a liz warren quote, why go to the trouble of running for president to promote ideas that can't work which they say is not possible. what's the significance of the washington posted for calling news these top candidates for going too far to the left. >> we talked on this show about these problems early on here. but "the washington post" said you are not going to get elected with these. it's not that it's not something that will pass or nothing you will get elected on. it just doesn't work in the

math. the democrats used to make a lot of hay, they are the party of accounting, math and see you earns whether it was evolution or climate change. but they are going so much further off in bad signs and bad math. there is no plan on the table for medicare for all. by the way, the ideals they are going for, there are ways to maker that happen. to be honest is what the "the washington post" is saying, you can get medicare as a buy-in thing. but that could be a $10,000 or $15,000 bill. >> candidates often run on unrealistic promises. donald trump said there will be new manufacturing jobs and factories and new coal jobs in west virginia. there has been a stayedy increase of d steady increase of

jobs since 2014. it's not one president or another. these presidential candidates return on unrealistic promises. it's important to hold candidates to account for promises that are so far outside the coach what is feasible. and the democrats are in danger of rushing into fairyland. but i'm not sure any of this matters given their candidates are 15 months out. dierdre: the washington most of does lean left and they are saying if you are going to have an idea, make sure it's feasible and can get independent voters, that there is a possibility. so i think that's interesting. that may and reaction to a lot of debates we have seen seeing of late. and the left worrying that some of these candidates are too left

to grab the middle. >> as a long-time reader of the "washington post," i slightly disagree with you. it doesn't mean if it leans left it's basically "photograph today -- basically"pravda." can you imagine a company trying to take in the most of amount of money possible and give the least amount possible. that's how they make profits. starbucks does that. this is the start of the "washington post" push for biden. they know that biden is really the only one that can win. probably the most of central, the season strift candidate they have. this is their way of saying forget these looney ideas.

if we have any chance of beating trump, it's god to be with biden or whoever comes up and replaces biden. dierdre: sanders and warren also co-signers of the green new deal. >> it is not even about the climate. it's an economic plan, and it is. it's designed to get massive federal tour, grow the federal government under the pretense that average americans cannot be left to live their lives without ruining things, especially for the democrat party. it's unaffordable, it will never happen, and the premise behind it is bogus. dierdre: you disagreed with me on the last point.

what about this one? >> i totally disagree with rush on this one. for the vast majority of democrats, the harvard educated think they are smarter than the masses. it's basically, you dummies give us all your money and we'll decide how life should be lived. they would like nothing more than the centrally planned kremlin running our lives. is there not an ultra liberal out there who would not like to run not 20% of the healthcare like healthcare is but 99% of the economy. >> there are things government does whether it's the highway act or subsidizing the railroads in the 1990s. or the moon shot. there are things the government does for things that don't have an immediate profit. they trickle into the commercial

economy. this is not because there are people who want to erect a soviet style state. the government does think in the collective interest that no one company will do. david: the green new deal is $300 trillion. >> it's also a massive infrastructure plan which donald trump campaigned on. david: $92 trillion would drain the private sector and put it in the hands of the government. it's exactly what our constitution was designed to prevent. we have got to move on. massive protests taking place in hong kong. check out these photos. that's next.

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david: the protests are expected to grow during the weekend. there was speculation china was planning to declare martial law as the government takes this resistance from within. christian what are you hear being this rumor about martial law. >> there are rumors that beijing is not going to let what's happening here slide. that's not deterring the protesters. they real. >> i this is a last chance, a last stand. but as for a move toward martial

law and invasion by the liberation army, i think that's a little more remost of. but a hybrid invasion of the public security bureau, the police would r u the more high risk forers and beijing, but a possibility. hong kong government yanked the extradition treaty, that was the initial spark for the protests. what's the end game? china is not going to invade hong kong. they want more protection than what had been in place. isn't this like the protest in france, protesting without what a clear sensible outcome could be? >> it's interesting.

it's a new collection of leaders. some of the demand are varying. even though the extradition treaty has been pushed to the side, there are others who want the chief executive to resign for her role in what's going on. questions about what the police have done. demand that some of the protest leaders in jail along with ordinary citizens, airline pilots, included, should be let out of prison. i think this will go in the direction beijing need to fulfill the promises that include universal suffrage. essentially real democracy in hong kong instead of half democracy. and restoration of the autonomy promised hong kong. >> is china pushed into the corner, not allowed to be the

china they were the last few years? are they overreacting? or are the people beginning to protest to get china to change their behavior? >> the implication is right that it's related. xi jinping's power has been. xi jinping essentially crowned himself emperor at the 2017 party congress that was supposed to lead to great new levels with china. but the economy is down and he botched the trade war. this in hong kong has further botched his power. it's easy to view these things as separate, but i think it all comes together. dierdre: if civil servants strike object monday as they are

threatening to do, is the government going to clamp down? are you hearing anything along those lines? >> that is what prompted the genesis of tonight's protests. civil service getting together. upset that they were told to shut up. these are risk averse people. these aren't young students who are generally more aggressive. then they were joined by hong kong citizens. and there will be a protest across the harbor. even bankers are joining into this process. for a i that has no soul and is focused on making money, the government is not sure footed because it had to break down once and it didn't want to have to do that again. it will be interesting to see

how it develops. david: christian whiton, thank you very much. president trump calling out quote liberal leadership he says is destroying inner cities. is he right about that? president trump: democrats want to spend hundreds of mills of dollars on illegal migrants instead of supporting their own struggling communities. no good. no good. you wouldn't accept an incomplete job from any one else. why accept it from your allergy pills? flonase relieves your worst symptoms including nasal congestion, which most pills don't. flonase helps block 6 key inflammatory substances. most pills only block one. flonase.

drive * the trump administration issuing a new warning to the united kingdom. they said they won't get a new trade deal unless they drop attacks on american tech giants. we'll be monitoring this very closely. president trump: you see our inner cities. we spend billions and billions and billions for years and years and it's stolen money and wasted money, and it's a shame. for decade these communities have been run exclusively by democrat politicians. and it's been total one-party control of the inner cities. for 100 years it's been

one-party control, and look at them. david: the president railing against democracies and their high crime rate. of the 20 largest cities in america, 15 are run by democrats including the cities with the highest level of silent crime in new york, los angeles and chicago. >> you just cited a statistic, that ranked the top 15 cities. and some of those cities have been like that for 4. >> -50 -- for 40-50 years. you look at crime and poverty, they are high on that list. you talk about cities receiving money. baltimore is in the headline.

they received $5 billion last year. the cities all getting a ton of money in federal aid yet you see pictures like this. it's sad. even baltimore. dierdre: some of our colleagues in baltimore say we don't want to leave, but this is a mess and we don't know what else to do. we love our home, but it's unlivable conditions. what does this mean for 2020? what can the pitch be when president trump comes out and says some of these cities have been democratically run for 50 years? >> as an electoral strategy it only rallies, no republican is going to win any of these cities and hasn't for decades. on the flip side while it's true chicago and baltimore are

egregious examples of failures. but new york, boston and austin have had massive decreases in crime. if you are going to criticize democratic machine cities, you have to praise democrats or at least praise the policies that led to competitiveness of a large number of metropolitan areas. >> i don't know the federal government's role in these local crime statistics. when you look at crime statistics, you will find dozens of reports they stay because of drugs or guns, education, poverty, because of democrats. it's like ink blots. you can find what you want in the data. florida, miami is worse than new

york. that's a republican state. you can have your own gun and shoot somebody. washington is all white and they have one of the worst crime rates. does that mean the democrats caused the crime? this city is one by one of the most socialist mayors of all time. the crime is not bad compared to miami. david: i remember how the crime turned around because of a republican mayor in new york, rudy giuliani. everybody is talking how money is the answer. here is a 1995 piece from the "new york times." he lowered crime, made it a much cleaner city and he did it while he was cutting the budget.

>> people saying the crime rate is high, they weren't even alive when rudy giuliani was there. there is a lot of possibilities as to why some places have that. people who have been to jail tend to do more crimes when they come out. if you can lock people up, it cuts down on crime. >> new york, there is finance, fashion, media, there are jobs. the tend to skew the lower crime rarity as well. >> i was here in the 70s. talk about a hell hole city. it was here. there are studies that photograph why there is crime reduction and there is a lot of correlation and not a lot of causation.

the u.s. preparing for a new strategy in afghanistan after a deal with the taliban. but can the taliban be trusted? we'll "a marine veteran next. president trump: with respect to afghanistan, we have made a lot of progress. reducing it after 19 years. when i walked through a snowstorm for a cigarette, that's when i knew i had to quit. for real this time. that's why i'm using nicorette. only nicorette gum has patented dual-coated technology for great taste. plus intense craving relief. every great why, needs a great how. who used expedia to book the vacation rental that led to the ride ♪ which took them to the place where they discovered that sometimes

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david: the trump administration planning to bring home thousands of troops from afghanistan after a proposed peace deal with the taliban. the number of forces could drop been 8,000 to 9,000. is this the right move? who better to ask than retired marine staff sergeant johnny joe

jones. staff sergeant, good to see you. thank you for your service and sacrifice. can we trust the taliban? >> no, we can't trust the taliban. but are we playing the card we are dealt? probably. two administrations in a row made a promise and have not kept it. we are playing as much politics as strategy. perhaps this is the path we have in front of us. >> i think the question is can we trust them more than the alternative. the soviets or us or dictators like qaddafi or saddam hussein. the best role for civility is now the taliban.

they could be in charge of this area. >> it depend on what the alternative is. is the alternative another 9/11? is it losing a foothold in intelligence and deterrence? that's what we are told. can we verify that? no. is it about the two soldiers killed this week? the president's word today were obvious. he he i could win this war if i wanted. which tells us what he's doing isn't winning the war, he's withdrawing. we have to believe afghanistan is a sovereign country. if they want the peace talks on our withdrawal as part of that. even the afghan government is saying they don't trust the taliban or the strategy. i don't know there is a better strategy at this point. >> on that, joey.

afghanistan for years has been called the graveyard of empires. empires go in and spend time, money and energy and come out worse for the wear. the original point of this is the taliban shelters and harbored al qaeda on the eve of the 9/11 attacks. and the second rationale is they are a failed state and anybody could go in there. there are a lot of failed states around the world. we don't send in troops. we monitor and keep tabs. are we supposed to do that forever? at some point you have to go the best uses of our energy is not there. >> there are a lot of failed states. but there aren't a lot of failed states when we are not there, russia is, or when we are not there, someone is planning an attack on our country. we did go in initially to seek and find osama bin laden.

so the point is we are not getting information from our government. we are getting talking points and political rhetoric to win campaigns. that's the problem i have. if you can show me a strategy that keeps our country as safe or safer. but that's politics and we need to call it for what it i. that's my concern. dierdre: what is the one thing you can share with us as civilians about your time there and service there that you wish the public knew that has nothing to do with politics? >> afghanistan is set up to be a failed state. there is a country border in the middle of a mountain range and a neighbor called pakistan that has no interest in afghanistan

obtaining troops. and it's a tribal country. a neighbor will sell out a neighbor from a neighboring village to get the property. i'm not passing judgment. i am saying probably the centralized government of afghanistan will never have the type of control or sovereignty they should have or we think should want. we got start the in this country because the soviets wanted to be there. the joe omit cal parts of this war go well beyond afghanistan. those problems aren't going away whether we have troops there. they are in the cross-hairs and to date they haven't done enough to help themselves out. >> it seems the overriding reason we are in countries like afghanistan is to fight tear i'm over there before it comes over here. if we continue to pull troops out don't you think that

increases the odds of having another 9/11 or similar over here? >> it depends. bagram, kabul, do we have a place to do counter strikes? do we have partners we can trust? is afghanistan opening the back door or closing it? i will tell you we never left germany and japan and they are docile places these days. but if those containments are simply sitting around waiting to get shot or blown up, there are a lot of questions that don't get answered because the campaign gets in the way. david: forgive me, i have to call you staff sergeant. it's always a pleasure. please come back and see us soon. families are reportedly going deeper into debt just to stay up in the middle class.

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david: the american middle class is falling deeper into debt to maintain a middle class lifestyle. despite a recent uptick of wages, two decades of expenses rising faster than cal is have led people to finance what their parents might have owned. how concerning is this? >> on a scale of 1 to 10, it's a 9.5. it's a big deal. healthcare and education. inflationary terms, it has gone up 130% since the 1980s.

that's within all of our lifetimes. i think just to make the point, why aren't millenials getting married and starting families. student debt is the biggest chunk of debt outside of mortgage debt. that's intimidating. that doesn't make you feel good about building your future or building a life with someone. that's why you see elizabeth warren and bernie sanders have the support they do. they are going to vote for whoever speaks to those concerns. >> i mean, there are obviously dangers, interest rates were a skyrocket. there are some positives, too. they know they can borrow money because their jobs are secure.

the confidence that goes along with this. also it's not looking at the actual payments. if interest rates ro are low, you can finance more debt with low rates. that's really the payments are not as high. this would have been bad with 6% interest rates. we would be going bankrupt. is it good? no. the auto loan debt is as much as the student loans. people -- whether someone wants to buy one thing with cash. people have been growing things for 50 years to finance the economy. >> only on the student loan debt is there a dramatic increase last 15 years. we were talking on 2011, 2008, on the eve of the bubble. credit card debt was the same you just showed.

there was sub prime auto loans. that resonates. i think it point there, a lot of this is not your millennial middle class student. a lot of that was lower class people in their 20s trying to get two year associate degrees from for-profit universities. a lot of that was predatory lending to students. it's hard to know when the the y begins. david: you will soon be able to get your masters in marijuana studies. we'll explain next. when the food you love doesn't love you back, stay smooth and fight heartburn fast with tums smoothies. ♪ tum tum-tum tum tums

with tums smoothies. all right brad, once again i have revolutionized the songwriting process. oh, here we go. i know i can't play an instrument, but this... this is my forte. obviously, for auto insurance, we've got the wheel route. obviously. retirement, we're going with a long-term play. makes sense. pet insurance, wait, let me guess... flea flicker. yes! how'd you know? studying my playbook? yeah, actually.

david: major universities and the university of maryland are

launching course in medical cannabis. the legal industry is valued at $14 billion. the median salaries $46,000. so is a cannabis degree worth more than an english degree? >> it may well be. it depends on the courses. some of these courses i was reading through, the history of the cannabis. and if it's in the hard sciences, most of definitely. that's where the real demand will be. if you get into that, i think you are set up. >> we'll see the federal government step in and make english illegal. i don't see where -- this seems to be more entertainment than anything. you are not going to learn

anything they don't already know. get into the business if you are going to go. the booming industry. it's a booming industry. it's got a lot of science. this seems like a perfectly viable place to look for a moving industry in the future. dierdre: in canada it has taken off. a $13 billion industry in the next few years. cornell has an agriculture program it's a crop like any other. look at the opioid crisis. david: median salary $46,000. the average salary for construction is $64,000 a year, and you don't need a college education for that. i would rather be outside.

that does it for bulls and bears. thanks for watching. liz: stocks still near record highs, despite the rocky week over the escalating tried fight with china. 164,000 jobs. the jobless rates ticking at or below 4%. 90% of americans with health insurance coverage. a number of people are working. and we added $9 trillion in market central you since trump was elected. nearly half of the democrats will not be in the september debate. the growing fear among clinton democrats.