• With: Donald Trump

    This is a rush transcript from "Your World," December 16, 2014. This copy may not be in its final form and may be updated.

    NEIL CAVUTO, HOST: A terror attack killing 141 people in Pakistan. Now, most of them were kids -- a terrorist in Sydney targeting workers at a cafe, most of them just shoppers, Sony hackers promising to blow up theaters anywhere that dare run the comedy "The Interview," a silly movie that dared to mock a North Korean dictator, and a U.S. president these days more focused on how we torture too much and when it comes to the military how we spend too much.

    Today, why the Donald says way too much, and here and only here, one of America's most successful businessmen says, Mr. President, wake up.

    Welcome, everybody. I'm Neil Cavuto.

    And their only sin, just showing up for school, and now 141 Pakistani kids are dead. The Taliban taking a bow, and Donald Trump loaded for bear, not only ready to unload on this president, but come as close as he ever has to maybe one-upping Jeb Bush and announcing he is running for president.

    He joins me on the phone.

    Donald, good to have you.

    What do you make of all these crosscurrents, dangerous world, and we're kind of scaling back?

    DONALD TRUMP, CHAIRMAN & CEO, TRUMP HOTELS & CASINO RESORTS: Well, it's almost like we're living, Neil, in medieval times.

    You know, I would read years ago about the most vicious times in the history of the world, and you would see certain areas, but medieval times certainly seemed pretty much up there. And how are we different when there's beheadings all over the place, and all of the things that are going on?

    Nothing could be worse or more vicious than the times we're living in right now. It doesn't get any worse, and certainly doesn't get any more vicious, I would say, would be probably the best word to describe it.

    CAVUTO: I mean, you have said in the past, you know, Donald, that it's a world that is certainly unfriendly to Americans. You have learned that, abroad, many are unfriendly to American business, but this is a whole different beast, is it not? How do you deal with that? I mean, you have hinted about a run for president, but how would you change that?

    TRUMP: Well, it's a world that doesn't really respect America any longer. They don't respect the United States. They don't respect the power of the United States.

    And, certainly, they don't respect our president, our leadership. We are a country that is -- you know, it's just not there anymore. It's -- even if you look from an economic standpoint, China takes over the lead a few months ago, which I predicted a long time ago was going to happen. Who knew it was going to happen this soon?

    You look at the fact is, we're a debtor nation, we owe $18 trillion, $18 trillion, a number that nobody thought even imaginable. We're a country that's in serious trouble. Our infrastructure is crumbling. We're just not respected. And maybe equally as important, our leader is not respected and not doing the job.

    CAVUTO: You know, the market is down over 100 points today. It's about 800 in a little more than a week. What's going on?

    TRUMP: Well, I think that this could be the final symptom. The world is not doing actually as badly as the United States in a lot of ways.

    If the stock market goes down, then Obama is batting a perfect thousand, because that's the one element, that people could say well, look, the stock market is doing pretty well, but it's doing well for a lot of artificial reasons. It's doing well because of very low interest rates, artificially low interest rates.

    Basically, it's free money, and even I -- I'm not a stock person, but a long time ago, about three years ago, when I saw what was happening with money, and certainly how little you get on C.D.s, I invested very heavily in the stock market. And I feel like a great genius.

    But I sold a few months ago. I just said, I'm getting out because I don't have confidence in our leadership. And we will see what happens. When interest rates go up, it's going to be interesting to sees what happens with the stock market. But...

    (CROSSTALK)

    TRUMP: ... it's very troubled times.

    CAVUTO: Go ahead.

    TRUMP: And, you know, the one other thing that you have to say, Neil -- I listen to your program. I have great respect for you.

    And, you know, you cover the business, although now you're getting more and more political, and that's fine, but you certainly cover it, and you certainly -- that the business is your thing. When you look at that artificially low, in the fives, unemployment rate, it's a joke.

    The number really is 20 percent. It could even be higher than 20 percent. So many people have given up looking for jobs, and they're not counted in the numbers. And we say, oh, wow, unemployment went down a little bit. It's not down. It's up. It's probably higher than it has been in the last number of years.

    CAVUTO: Yes, when you talk about the real unemployment rate.

    But, you know, you mentioned something about how our markets are doing a second ago, but the Russian markets in really a tailspin. They just raised their interest rates to north of 17 percent, loan shark rates. It's done little to boost enthusiasm for either their currency or their markets.

    And I'm wondering whether that is the next ticking time bomb and that Vladimir Putin is in trouble. What do we do if that's the case? Because a lot of Russian oligarchs, as you know, are big buyers of New York real estate.

    TRUMP: Right.

    CAVUTO: They have been -- they have underpinned lot of the buying here, a lot of his buddies. What happens?

    TRUMP: Well, we have hurt Russia and we have done certain things that have really hurt Russia.

    And I don't know. Is that a good thing or is that a bad thing? We will see what happens. He's wounded. And, you know, wounded people and wounded animals can do lots of strange things. And we better be a little bit careful.

    It's one of those things. He's not somebody that respects President Obama. He doesn't like him and he doesn't respect him. And maybe the respect is much more important than the liking.

    CAVUTO: Now, you said you got out of stocks. Are you dialing back on reals estate because of what's been happening, because it's been running up on and on and on and on and on?

    TRUMP: Well, I don't know what's going to happen.

    I'm looking at New York and I'm looking at everybody is building a building on every corner. And I'm sort of sitting back and waiting and watching, which is what I like to do. And I'm looking at buildings going up that I don't think are going to make it. We will see if that's true or not.

    CAVUTO: Yes.

    TRUMP: I hope I'm wrong, but I look at all of the buildings going up with the very cheap money. And it's going to be interesting to see whether or not there's Russians to buy the apartments or whether or not there's Chinese.