how did smoot get the name "smoot"? >> in high school, he was 6'4" and wore a 14-size shoe.on't know what smoot has to do with that. >> smoot studies law in college but never goes on to practice. instead, he opens a bike shop in dallas. >> he had some motorcycles, also, and he apparently was a vil hose. >> a regular evel knievel. >> that's right! >> maybe it's smoot's flamboyant antics that catch the eye of a dallas widow, named cookie wollebak. >> that was cookie, and we called smoot "pa." >> 1931. cookie has two boys, 5-year-old david and 3-year-old bob, debbie and diana's dad. smoot raises the boys as his own. then, out of the blue, smoot decides to run for dallas county sheriff. well, how do you go from that to being the lawman in town? >> there was some upheaval in the sheriff's department, and he was asked if he would like to run for sheriff. and he said, "okay." >> turns out voters in 1933 are charmed by big smoot. he takes office just ason-era g john dillinger and "pretty boy" floyd capture the country's imagination. the most notorious of all -- dallas' very own bonn

these drops b the w fuelled in part by the market c, but they were exacerbated by the smoot-hawley tariff act and continued protectionism that followed for years. that's why an impending trade war could be as dramatic as the one seen 90 years ago. u.s. exports of goods and services account now roughly for 13% of your gdp. back in 1929 it was just 5%. president trump's new world order how two powerful american adversaries that were not at the summit with north korea would be the nations that benefit most from the meeting. here's our cartoon of the day. president trump with his arm around kim jong-un. with enemies like that, who needs friends, trump says. to help hand everyone a better world. that's why we, at the coca-cola company, make shore bs with actual coconuts. tea, organically. treats for celebrations. make shore bs with actual coconuts. water with added minerals for taste. dear future us, that's why we're striving to do good. and help our communities get the education they deserve. we're doing this today... ...so you can do even more. the coca-cola company ...so there's nothing mor

smoot. reid smoot willis hawley.are you talking about, willis then they -- maybe not. >> no. >> no? >> no. >> but smoot there are -- >> "diff'rent strokes," no. >> no, okay. >>> coming up, president trump abruptly calling off the eagles super bowl celebration at the white house. details coming up next ♪ 'cause i'm already gone ♪ and i'm feeling strong >>> okay, um, i'm somewhere else, um, i guess, fors story. president trump -- >> the magic of television. >> yeah, yeah. honey, come over here! he's somre else! we've got to watch and stay longer on -- is that what happens, do you think? >> well, probably not when you do it so smoothly. >> okay, all right well, we are here. it's a different look, and i'm going to tell you something about the eagles president trump abruptly -- is this your idea >> no, it's not mack's idea. >> president trump abruptly calling off the eagles celebration today at the white house. he tweeted, "the philadelphia ed to the white house unfortunately, only a small number of players decided to com

we tried in the holly-smoot tariffs that broke the global he economy. it led to the great depression. we want to prevent that. we want sensible trade negotiatio negotiations. but creating a trade war is not going to put anybody in a good place. there are no winners in a trade war. >> all right. looking ahead. what are your expectations to the summit? >> they're pretty low. but that is not necessarily a bad thing. let me explain. kind of on the spectrum that runs from a meaningless photo-op to we solved the entire problem, we're kind of over here at the moment. but all indications are that the two leaders will come up with a road map forward that might ultimately lead to getting nuclear weapons off the korean peninsula. that's a good thing. compared to where we were six months ago, alex, when we were all talking about the potential seriousness of a war on the korean peninsula. we are in a better place. i think the administration has done a reasonably good job? moving forward here. let's see how it comes out. these are two volatile leaders in a very small

the hawley/smoot tariff act which -- anyone? raised or lowered -- raised tariffs in an effort to collect more revenue for the federal government. did it work? anyone? anyone know the effects? it did not work and the united states sank deeper into the great depression. >> grover norquist who supports trump in most issues of policy joins me now from washington. you yourself tweeted over the weekend. >> yes. >> is it possible to increase american economic success using a tariff? hasn't worked in the past. you've said that not all tools are the correct tools. so what is your view of this trade war that frankly the trump administration has fired the first shot in? >> they would argue they didn't fire the first shot, but i -- i derstand your point. i am concerned that when you use the tools of tariffs, you damage movement towards more open trade. the administration's position is, we think we'll get their attention and then they'll sit down and we'll get better negotiations. there was some reasonably that may have happened with south k

minimum legal age for employment is fourteen united nations children's agency unicef says in full smoot is difficult because of where most of the children work in small factories workshops or from home will be global equity. this should be a different set of jobs for these people other than the tobacco industry they are at least two million people working nationwide in.

gerri: just to be clear, this is not smoot-hawley because this is a big impact on the market. >> gimmickye starting to retaliate. could this get blown out of proportion? if things start small and go further than you think. i do not think it will become that big. i'm not all that worried about a full-scale world war trade war. >> i hope you're ready. thank you very much for coming on. great to see you. coming up, as men's team played in the world cup, iranian women reach the goal of the around. phil mickelson had something to say about his behavior at the u.s. open or with jared max just ahead. u.s. stock index futures right now. the board down right now across the board you see the dow now done by 79 points. s&p 500 down by five, nasdaq down by 11 and a quarter. you are watching "fbn:am." ♪ this scientist doesn't believe in luck. she believes in research. it can take more than 10 years to develop a single medication. and only 1 in 10,000 ever make it to market. but what if ai could find connections faster. to help this researcher discover new treatments. that's why she's working with wats

this reminds me of the smoot-hawley tariff act of 1930 when a massive trade war broke out at the beginningthe depression. it wasn't going well for a long time. everybody realized lowering tariffs on both sides of the atlantic is good for business. that's all the president wants to do. they have massive tariffs in the e.u. on cigarettes for instance. 33% tariff on american smokes? i want arican cigarettes in the lungs of europeans. why shouldn't they smoke competitive priced american cigarettes? i don't get it. it's ridiculous. all he is saying is we pay for nato, we pay to protect you. our spending is very large compared to yours as percentage of gdp. we have lower tariffs, higher military spending. that benefits you guys. let's create a fairer system. peter navarro's comment about hell might've been too much. >> kimberly: also e-cigarettes. >> jesse: a number of things. >> juan: what has he delivered? zero, zip. nothing. i am saying you've said he delivers. he doesn't deliver. i don't see any promise. in terms of trade, we are talking g7. in terms of the g7, want to do deliver? zero. in f

of smoot hawley and how it contributes event to the catastrophe of the second world war. the president is doing this, as brendan said, sarah palin used to say about obams foreign policy, he's coddling our enemies while ticking off our friends. this is exactly what the president is doing on trade. he put off tariffs on the chinese which are the real problems here. but nadaexo andope are our best friends and this is how we're treating them. so, we are destroying the basis of this kind of liberal order that the united states itself was founder of 75 years ago. >> brendan, why have the markets hung along? >> well, we don't know what's happened yet. one of the things that you and i have been watching and talked about for the last seven years, markets have grown increasingly inured to the possibility of markets. we don't know. we don't know what the result is going to be. >> isn't that stunning that the markets have become desensitized to the words and rhetoric and threats of the president of the united states? it's like he neutered himself. how do you think is this going to pl

he's noting protectionism that led to the great depression, the smoot holly act. he said make america great again shouldn't me make america 1929 again. do you think the tariffs could have that dire of consequences that we're hearing senator sass warn against? >> i'd say two things about that. first of all, this isn't an exercise in theory. i worked in the bush white house in 2001/2002. president bush imposed steel tariffs. there was damage to the rest of the economy that exceeded any gains to the steel industry. it went to the wto and the wto ruled against the united states. i've been mystified by this action because they know they will lose and they know there will be harm. you just have to look back at that episode. the second thing i'd say is the tariffs in and of themselves are not large enough to dramatically damage the u.s. economy. it's the rest. it's the fact that we have retaliation by our allies that escalates the damage. it's the fact that you endanger the nafta negotiations, you know, that exacerbates the damage. it's the fact that you're now taking yo

. >> chris, in 1930, we imposed the smoot/haully tariffs that resulted in cutting u.s. exports to other countries by more than half. and they made the great depression even worse. you know, these other countries aren't going to just sit there and take it. so they may be our alliance. they may be our friends but they also care about their own citizens and their own economy. and think are going to retaliate. it's not going to be you know, donald trump's going to get hurt. it's americans who work in a factors factories across the country. >> every politician has their own factories. >> great to have you both. >> thank you, chris. >> still ahead, audacious piece of prop gan dab rolled out at local news stations across the country to stave scott pruitt. first a look at new evidence showing exactly how russia tried to hack into actual voting systems in 2016. we've got the actual e-mail here in two minutes. schumer and i sent a letter to the secretaries of state before the election saying heads up, be on the watchout. something's happening. guard your data. we all knew this be

you don't get into a great depression with the smoot/hawley act with free trade. if the republicans get womped in fr november because of this, you can't win. >> it is fascinating to see the g7 finance ministers meeting over the weekend. for the first time in my memory, you have seven major economies and six of them rebuking the united states. the u.s. could not sign on to the communication because the communication was how the u.s. was wrong here. this is what "usa today" says. the policy does real harm over the long term. businesses require stability with major investment. thenited states and chief allies need the super power to act with consist continue principles not according to the late whims of a leader who sees each day as a new episode of reality television show. what is fascinating to me is from inside the administration you hear this is a president pulling the levers. he had been put off by the globalist in his team to delay and exemptions for the tariffs. now the president is saying we are tough on china for stealing intellectual property and protecting

in 1930 the smoot/hawley tariff act was passed raising tariffs on 20,000 imported items.ere is what happened to the u.s. unemployment rate. in 1930 when that tariff went in effect unemployment was at 8%. the follow year, 1931, to a it reed to 25%.6% and in 193233 a month ago after president trump increased tariffs on chinese steel that country retaliated by refusing to buy some u.s. imports. the wine and agricultural industries in california are feeling the impact. >> we are the fifth largest economy in the world. and tariffs will impact our kpee, jobs, price the goods. this is not good for anyone. >> the new tariffs will go into effect on july 6th. and u.s. business leaders are urging both countries to resolve this through negotiations but there is little sign the talks will resume. in the newsroom lyanne melendez, abc 7 news. >> thank you. >>> the city of san jose is taking a major step toward upgrading wireless service in the city. mayor sam liccardo says they have reached agreements with verizon at&t mobile tie and to install technology on light poles. liccardo says t

talked about or threatened put in place, that would jump to 5%, still well below the 20% during the smooty era that viewers of "ferris bulers day off" would be familiar with, but it could be economically damaging the difference from the stock market, it's devastating more sales tied to international trade than we've ever had before, particularly in areas of leadership for the markets like the tech sector. that is not yet been priced into the markets. having said that, though, that's hopefully not where we're headed signs this morning between the offer by some of the german automakers is a sign ahead of the july 6th implementation of the new tariffs with china we will come to some sort of resolution that is the hope >> you mentioned bringing down your equity allocation, to what, and what is -- is cash growing in the portfolio i saw some charts today looking at the spread between s&p dividend yield and t bills you have to go back a few years to see a spread this narrow. >> you're getting there. cash is not yet for us an asset class we're investing. we've brought down our equity allocation f

we've experienced that in the past with a senator from utah named smoot. do we want a trade war? >> sadly tariffs a lot of times punish those we intend to protect and i talked to the good citizens of utah that may be implicated in these wars associated with the tariffs and possibly in these negotiation. their business is being harmed. however, someone i talked to in one of my meetings says -- said i am buying aluminum on a regular basis and these far riffs are going to hurt me but i tanled is with the president because i know in the end we're going to get a better deal as a result ofwalk working forward with this. by need a president who will talk tough and i stand with the president moving forward. if you're not going to be tough about it they're just going to roll you over as sadly has happened in the past. >> governor romney? >> trade wars aren't good for us or anybody and no one i don't think wants to see a trade war and hopefully we'll be able to avoid that but you can't walk way from the table so quickly. you have to stand up for your interests and i have to look out for ut

idea that this very limited range of steel and aluminum tariffs is going to go out of control and smoot holly comparison, it's not the same. we're in a strong economy and this is a limited set of products and in relation to the size of our economy, it's minuscule. now, finally, and i'll close with this thought, is it legal for us to do this? and i would submit that the countries that are retaliating are the ones who are violating the wto right now, as ambassador has submitted. the article 21 of the gat says it's self-judgment when you're applying a national security rationale and even stated when the swedes said we need to put a quota in for our footwear for our military. when you say it's national security. you have to assume that steel and aluminum fit that bill. and so, people are saying, well, there's a reasonable chance that the united states is going to lose a case at the wto on this. i wouldn't be so sure about that. we'll see what happens there. but i would encourage all of you to take a look at the ambassador's submission to the wto on these retaliatory tariffs. this is not a s

that's what happened, by the way, in the great depression they pushed tariffs up with the smoot-hawleydn't work there was retaliation. they learned their lesson. same thing here. but i think that my opinion ist will probably hold on. these tariffs are not. they're too crazy. they're generating so much anger around the world it's not a sustainable policy. >> well, i don't know. just when everyone thinks that, steve, we get an announcement of a new set of tariffs >> the trouble is our data the president has an exquisite ear for certainly his base and maybe the broad public on this issue. when we put up the numbers showing that a majority of the public supports renegotiating trade, and i will points out, the numbers fall when it comes to putting on taxes and tariffs on imports public likes that less, but there's still a plurality in favor of it. so he has the public behind him if not the market and business on this issue. >> yeah, they want to see us fight back, right, against unfair trade practices i get that, but it hurts >> the trouble, sara, is that this is a one-way debate there is n

ill-advised and if you're not going to follow through, which i think would be more ill-advised, two words, smooti think trade wars, no one wins. maria: real quick on the hedge, you say you want to be hedged in the us. are you expecting a sell-off in stocks here? >> we've seen a sell-off since january 2. maria:-26m you26.maria: you cae expecting it. >> all markets globally are suffering from the central bank's pulling back liquid at this. that's going to -- liquidity. that's going to slow economic growth. when growth slows, profits slow, stock prices fall, pretty simple. maria: is it significant from here or -- >> our view is that, look, if it's a normal correction with a normal economic slowdown in 2019, we could see a 10, 15, 20% decline. but slow and not a crash. if we get really serious about tariffs and trade wars, it could get ugly in a hurry. you i a wrote a letter about this a while ago caldwell come to hooverville. it -- called welcome to hooverville. hopefully we don't get there but it could happen. maria: thanks so much. president trump just tweeted again. we want to tell you what essa

this is not exactly smoot holly, it's not that magnitude.ange, any kind of policy change whatsoever, so this disrupts them. however, i do belief china can withstand this because trump is not hitting them hard enough, they'll be able to go around him by going to our allies. and as a consequence, you know, he's isolated america. he's handled this thing very badly. stuart: okay. we hear you, peter morici, thanks so much for your contribution. i want to go back to john layfield. what would you buy in this market? what do you like? >> two stocks i like, chinese stocks, alibaba and jd.com. i own them both. they're in a war just the same as amazon and walmart are in in the united states and around the globe. they have 60 prkts 25% of the online shopping. that is where the growth is going to be, especially with the one belt, one road initiative with china. they're going to dovetail wherever china goes,, tending their influence, they're -- extending their influence. i think both stocks are a buy here. stuart: because there's a dip you are buying. bot

just kind of trade policy it goes to that, who should be doing what and we had a bad example with smoots we may now have to recorrect years later and say, maybe it's time we have a more bilateral relationship with trade tariffs. >> what did you make of how this zte situation was ultimately handled yesterday? >> well, i think, you know -- i guess the proof point that everybody should look at is when you can get tom cotton and chuck schumer on a reaction bill within one day, everybody should take pause i think the concern with zte is not so much trade. it is national security and i think people who sit behind the closed door in intel know more than what i do about the threat that that organization and really the chinese government presents and i'm glad that they're taking the lead in advancing that discussion here also on capitol hill >> i want to read you a line from today's in t"new york time- the raging war between protectionists and free traders in the trump white house should farmers have an outsized influence in this debate >> you know what i think, yes number one, we're value creat

last point, if you go back 100 years ago -- and we ought to get a chart of this -- look at the hawley smootn the late '20s and early '30s. how did that work out? that cracked the global economy and you can drop a plum line to the rise of fascism, see madeleine albright's on this. that's what leads to the second world war. >> this is america first and protectionism. this is america alone. the french and others said the g7 has become th g6, the united states has spent years building up an order that served our interest on balance so this is not just bad economics as steve pointed out, this is not suddenly going to cost more jobs than it saves. this is going to contribute to the further unraveling of a world that we have literally spent three quarters of a century trying to build. >> it's a slogan, america first, it doesn't put america first, it puts america alone but also, steve, it puts americans last. americ americans, working class americans, are the ones who feel the disproportionate sting of these higher costs brought on by the trump tariff tax. it is a tax on americans. it's not a tax o