john rutledge of course would later serve on the supreme court. he basically helped win the american war for independence and south carolina from the saddle of the gun. and he said no, this constitution that you've written, mr. madison, is not going to work in south carolina. we need to modify this thing. so that's what happened in philadelphia but, in fact, one historic call to the in philadelphia because no one was going to be sure if this is going to get out of philadelphia to begin with. there were so may different ideas and opinions floating around in philadelphia that it appeared the constitution was going to die before the middle of the summer of 1787. and the story that you often hear about that constitution is simple. it's the large states against the small stick to the people i just listed all came from small states. madison of course was my very large state. but that's not the real issue. in fact the real issue was what type of government we going to have. was going to be a national government or a federal government? and so today we ha

john rutledge is joining us now. really a skilled eye on what's happening in china. certainly a skilled investor with rutledge capital. mr. rutledge, welcome to the program. i know you just -- it's great to have you back by the way. i know you heard the discussion we were having on joy global. how do we recognize these two separate numbers out of china? both official numbers and hsbc? >> start with the bottom line. there's no hard landing this china. there won't be one. there's an imaginary one that happens every three months when western investors misinterpret data from china. and then numbers come out to make it look not so bad like over the weekend. there were two pmi indexes. smaller companies are more sensitive to exports. exports are very weak because of european decline. and there's also of course a weak housing market. china is slowing to 8.5, not to 5 to 6 where people should worry. >> were you using the last 7 to 10 trading days to load up on stocks that you like that have exposure to china whether it be mi miners, i know you like caterpillar. you said you w

or john rutledge who would later serve on the supreme court basically wins the war of independence he said no. i will work in south carolina at. the need to modify. that is what happens in philadelphia a. it was called a miracle. nobody was sure it would get out that it appeared it would die before the middle of summer 1787. is the large states against the small states. madison is from a large state. not the real issue. the real issue is what type of government? national or federal? today we have a federal government they did not call it that. sherman and rutledge said we wanted federal government that madison wanted a national government. there is a difference. federal was general only with general purposes in mind everything else left to the states that is what that generation argued for. of the national government to put all power with the central authority. made you start talking you still hear the term the term turnaround but general government for general purposes? i will talk about that. with the constitution came out to comment no one was sure if it would be ratified. they hav

. >> really interesting tomorrow morning on "squawk" we have john rutledge, one of the experts on what'sng on. boots on the ground china. he trades the china wealth fund, among other things, as well as being an instructor over there, so when he comes out with the numbers, not he comes out with the numbers, but his reaction to those numbers, that will be very interesting and must-watch tv. >> he might have told them what numbers to report. >> may have. >> may very well. >> they might listen to john. >> i thought it was interesting to see apple in the market go their separate ways for once. >> right. >> not for once, but that hasn't happened in quite some time. maybe thrill start to diverge now. >> what were you seeing in terms of the apple activity in apple? you're pointing this out. how many days of underperformance when it comes to apple versus the s&p 500? >> the last three days it's been down. >> it's been down when the market has been higher. >> yeah. what we were looking at, too, melissa, apple when it has -- this will be a fabulous day, while it's a great day for you today if you w

john rutledge, who's been on this program a number of times, he was on "squawk box" this morning, he agrees with that. he was talking about go go out now and buy bhp, buy freeport, caterpillar, all the names he's been talking about. stephen roach, who's been on the program as well, one of the best china watchers out there, sent some bullet points for us today, which also shares that point of view. i think we can run through them quickly as well. this, again, from steve roach, who knows china as well as anybody. and again, b.k., i guess the headline here is, the low point of the economic cycle. so, these experts share your view that china's bottomed at this point. >> yeah. well, i guess i'm in good company then. that encourages me that there's other people. now we just need some people with some money to spend and buy up the stocks that i've already bought. >> would you buy some of the other names like rutledge has talked about, for example, some of the miners, big industrial name like cat? >> no, you know what, not really. i'd much rather be exposed to the domestic chinese consumer.

or john at south carolina, another very important founding father, john rutledge of course what leaders are on the supreme court. in south carolina from the satellite governor, so very important individual. and he set no the constitution that you've written mr. matheson is not going to work in south carolina. we need to modify this thing. so that's what happens in philadelphia. in fact one is called american and philadelphia because of only have we been sure that it's going to get all the philadelphia to begin with the were so many different ideas and opinions floating around in philadelphia that it appeared the constitution was going to die before the middle of the summer of 1787. and the story that you often hear about the constitution is simple, it's the large states against the small states, the people in dickinson and rutledge came from small states. madison of course is from a very large state. but that's not the real issue. the issue is what kind of government are we going to have? was it going to be a national government or a federal government? and so today we have this story a

. >> and joining us now is peter novaro, the author of "death by china" and john rutledge. peter, we know the numbers are weaker than had been anticipated. does that mean the soft landing china had been hoping for is going to be tougher at this point? >> that's right. i think it's going to be a hard landing for all of us. the problem is that china has a structural issue. it's too heavily export dependent. it grows over the last decade by flooding u.s. and european and other markets with illegally subsidized programs. you get a shaving off points of the china gdp. the bad news here for retail investors is it augurs slower growth globally and a slide ways for down market. it listens the possible ability that china will engage in that it needs to address the structural imbalance. that's going to create tensions between the obama administration and china. >> and, john, you agree this is something that could make the chinese say forget about it? >> well, chinese reserves have not increased in the last six months. the reason you've seen reserve requirements decreasing in china is