Permabear wrote a short summary of this interview and posted it in our "Bob Brinker" discussion forum at "Investing for the long term" on facebook. I've reposted some of it here:
Peter Navarro was Brinker's guest in the third hour of Saturday's show. I am very familiar with Navarro's thinking from his contributions on bearish web sites I read as well as his regular participation on Larry Kudlow's show, which I watch religiously. Peter Navarro is a little more conservative than my tastes politically and economically, but I think his central message is very very important and no one seems to be listening. The name of his book is "The Coming China Wars". His main point, expressed well on the Brinker show, was that China is really taking advantage of the U.S., using currency manipulation and unfair trading practices, to pretty much steal America's manufacturing base away and contribute to great imbalances in the world economy. He argues that besides blatant currency manipulation, China also encourages stealing intellectual property (think Google and all the piracy of software), protects their own markets, and subsidizes their exports, basically contributing to a mercantilist economy, with America ultimately being the victim. His point is that China is surreptitiously engaged in economic warfare against the U.S. and the U.S. isn't even fighting back. We are just playing along as our manufacturing base disappears, as we go into trade debt, and as both Bernanke and our politicians encourage this trade debt by facilitating the funding of spiraling budget deficits. Navarro argues that if China floated their currency and abided by fair trading practices, that the U.S. could compete with China and take back much of our manufacturing, and thus our future. I really feel that Peter Navarro is right on these issues. China has been playing us for about 15 years, and combined with our energy imports, we are just exporting our wealth away, running up massive debts, and creating huge imbalances in the world economy which will have a very bad ending for everyone.
I sensed that Bob Brinker disagreed with much of what Navarro was preaching, but I think by the end, Navarro had made a strong case, which Brinker had to have at least taken account of. Along with an interview with doom and gloomer Ravi Batra about two years ago, I don't think I've ever sensed such irritation in Brinker's voice when interviewing a guest. But Navarro had it exactly right and Brinker was naive on these issues IMHO.