This is a rush transcript from "On the Record," January 7, 2016. This copy may not be in its final form and may be updated.
GRETA VAN SUSTEREN, FOX NEWS HOST: Tonight ON THE RECORD, Donald Trump invading Vermont. Stepping into Bernie Sanders' backyard and hoping to stomp all over it. Despite the left-wing state, Trump supporters lining up for hours to see the Donald.
And you are looking live as crowds gather there tonight. And like most things, Trump, it's huge. The Trump campaign handing out 20,000 tickets. But get this, the venue only holds 1400 so you tell me what's going to happen to the other 18,600 ticket holders? I don't know.
ON THE RECORD is monitoring this rally and other candidates' rallies for news this hour. We will bring it to you as it happens.
But, first, Donald Trump going ON THE RECORD before hitting up the Green Mountain state.
VAN SUSTEREN: Donald, nice to talk to you.
DONALD TRUMP, GOP PRESIDENTIAL CANDIDATE: Hi, Greta.
VAN SUSTEREN: Donald, a lot going on in the world. I want to start first with foreign policy and North Korea. They have recently done a test that has shaken everybody. And you suggested that China get more involved. But no one has been able to solve this problem so far. So tell me what you would do.
TRUMP: Well, they don't live and they don't breathe without China. China has a lot of power over North Korea. I have been saying this for a long time. And China is playing us like a fiddle. China is saying, well, we don't have that much power. We don't have that much control. They wouldn't get anything without China.
And China has the power and we have to tell China to straighten out the situation. I mean, you've got this mad man playing around with the nukes and it has to end. And China has to do it.
Now, we have power over China because of trade, because they suck us dry. They take our money. They take our jobs. They take everything. We get nothing. We lose hundreds of billions of dollars a year with China on trade. So, and frankly, if we ever stopped it, believe me, you would see a depression in China like you have never seen a depression before. So we have power over China. We just don't know it. Our leaders just don't know it. China has to solve the North Korea problem.
VAN SUSTEREN: How serious a problem do you see this? I mean, look, you know, they've got at least we know atomic bombs and Seoul, South Korea is a short distance away with probably 10 or 14 million people. And then every once in a while they do a test. I mean, the fourth test in about eight years.
How serious do you see this?
TRUMP: Well, I think it's a serious problem because he is probably on the wacky side. He's certainly -- he could be a total nut job, frankly. I mean, it's amazing for the young guy would go over and take over. You know, you would have thought that those tough generals would've said no way this is going to happen when the father died. So he's got to have something going for him because he kept control, which is amazing for a young person to do.
And I would say this, we are protecting South Korea. I have tremendous expense with South Korea. I do a lot of business with South Korea. I like them. They are great people. They are wonderful people, but they make a fortune as a country. Every time, I order a television set, when I order thousands of sets, I order many -- so many television sets every year for different properties, thousands, they all come from South Korea.
They have to make more of a contribution towards the protection because we have 28,000 soldiers on the line, very, very dangerous. And we get paid very little money, relatively speaking, by South Korea.
So they are going to have to step up to the plate and pay us more. You know, we are a debtor nation. We owe $19 trillion. And we are going in the wrong direction. The budget that was made two weeks ago is ridiculous, what they did. How that got approved? So we have to start thinking a little bit differently than we have in the past.
VAN SUSTEREN: Is the U.N. absolutely hopeless on this? I mean, the U.N. issued some condemnation, said that they are going to impose some sort of sanctions or consider it. But, I mean, do you totally take the U.N. out of the North Korea problem and do you totally place it on China and the only way China will do this if we put economic pressure on China?
Is that how you see it?
TRUMP: No, I don't take the U.N. out at all. I think the U.N. can be very useful and can be helpful, but the real power is China. China controls North Korea.
Now, they say they don't have that much power or that much control, I think they say that to taunt us because they like seeing what's happening. But China has great control over North Korea. North Korea wouldn't exist if it weren't for China. So we have to use China and, you know, ideally, they do it without any threat. They should do it for their own well being, but if we have to use the threat we have as we have economic threat.
VAN SUSTEREN: All right. Well, you talk about economic threat. The news today out of China and, you know, with what their economic situation is practically, you know, caused upheaval in every world market. I mean, China is not doing particularly well today and, unfortunately, it's affecting us.
TRUMP: Well, you know how poorly they are doing? They are going to be up about 6.5 percent this year. And that's more than we have gone up in decades. I mean, you look at 6.5 percent. So if we go 2 percent, we're happy. They're going to be 6.5 percent. So China has got difficulties and I agree with that because they are sitting on a little bit of a bubble. It could be a lot of bubble. But we are sitting on a bubble, also.
So China is going to go up 6.5 percent and we are going up 2 percent. And we are sort of satisfied at 2 percent. I'm not satisfied, but a lot of other people are satisfied. And we shouldn't be satisfied with that number. We should be doing much better than we're doing.
VAN SUSTEREN: To what extent do you assign the responsibility of our -- of the situation with China and the United States, our economy to President Obama and his policies?
TRUMP: Well, the buck stops here. You know, the buck stops with the president. He is in charge of things. And we had a very, very mild uptick. It's been, I guess, the slowest since the depression in terms of, you know, going up. And it's now probably heading down.
And based on what's happening in the stock market and you look at what's going on with companies, Macy's, I see Macy's is doing very, very poorly. Their stock is down tremendously like 46 percent and so many other companies are doing poorly.
So the stock market now is catching up with the real economy. You know, the stock market was the one thing people could point to and say oh, look what happened? But the stock market has been taking a big hit for quite some time now.
So ideally, you know, I hope that's not happening. But it's, obviously, we are not doing very well as a country in many respects. We are not doing well with ISIS and we're not doing well with anything. I mean, where are we doing well, Greta? We're not doing well with anything.
VAN SUSTEREN: All right. But Secretary of State John Kerry said earlier today that he thought that the deal with Iran is going quiet well. Meanwhile, you've got this situation with Saudi Arabia and Iran at each other's throats.
Why should the people of Iowa, let's pick the people of Iowa, be concerned about what's going on all the way over there, which is thousands and thousands of miles away? You know, sell it to me why that's a big issue for them.
TRUMP: Well, first of all, for Secretary Kerry to think that the deal with Iran is going well is probably the worst deal ever negotiated of any kind. I'm not even talking about countries. I think it might be the dumbest deal I've ever seen negotiated. On top of everything, they get $150 billion. We don't even get our prisoners back -- 24 day inspection periods. They're going to end up with nuclear weapons.
And, of course, you know, then add to the fact that they are also taking over Iraq as part of the deal because they are going to get Iraq as sure as you are sitting there. They get -- you know, they are going to take over the second largest oil reserves in the world, which are held by Iraq or just about second largest.
And, I mean, for him to say the deal is going well is incredible. Now the embassy gets burned down in Iran. And I think Iran is using that as an excuse. They are in Yemen. You look at the border of Yemen and that border is a very long, beautiful border along Saudi Arabia and they are taking over Yemen because they want to go into Saudi Arabia. They want to get the oil.
VAN SUSTEREN: All right. With all that's going on in the world and all these important issues. Why are you putting out an Instagram video against Secretary Clinton who is not even your direct opponent at this point? I mean, I assume if you get the nomination, you will deal with it later.
But you have a nomination that punches right at her, the women's issues. You have got this, you know, making allegations about Anthony Weiner, calling President Clinton a liar. You even bring Bill Cosby into this because in 2000, he gave a stump speech for her. Why? Why now?
TRUMP: Well, it's something we do. We have very talented people in the Trump organization, they came out. I thought it was good in light of what they said. You know, they called me sexist. I said you've got to be kidding calling me sexist. I have more respect for women than anybody and I certainly have more respect for women than Hillary does. And I will do much more for women if I'm elected. I'll do much more for women than Hillary would.
VAN SUSTEREN: Why do you think she doesn't have respect for women?
TRUMP: Because I just don't think -- I think with Hillary it's -- I think with Hillary it's all an act. It's all theatrical. It's her whole demeanor. I think it's all an act. I think she has gotten us into tremendous problems with, you look, you look at her things where you go anywhere you look, take a look at what's happened with Libya and Syria and all of the problems -- the migration, everything. The Middle East blew up around her, between her and President Obama, it blew up.
And our country is a far less safe place right now than it was and certainly it can be very much better. I will say this, if I win, our country will be a safe place again.
VAN SUSTEREN: All right. But that's a different issue. Libya, Saudi Arabia, the Middle East and Secretary Clinton for the four years that she was secretary of state and before that senator. That's different from -- I mean, the hit you are doing on her now has to do with her personal story.
TRUMP: No, it's just a response to what they said about me. It's nothing more than a response. And I think it's very accurate and I think it's a very good response. And it's one of those things. I mean, when they hit, they get hit back. It's one of those things. I have to do it.
VAN SUSTEREN: Indeed, you do hit back.
All right, Senator Ted Cruz, you have now raised the issue of his birth. He was born in Alberta, Canada to an American mother and a Cuban father. Why do you raise that now?
TRUMP: I didn't raise it. "The Washington Post" raised it. I was sitting, asking to, you know, they wanted to ask me certain questions and this was one of the questions they asked. I gave a very simple answer. But, basically, the answer is up to Ted. I hope it's not going to be a problem.
But the Democrats are going to sue. I think we have already said they are going to sue. A couple of them said they are bringing suite and that was a while ago.
And, you know, it's something that ideally he can solve and set up because it's awfully hard to run when you have that hanging over your head. He was born in Canada. He was a, you know, I think partially Canadian citizen. I guess he was a joint. And, frankly, I think it's something he has to get solved and I hope he solves it.
But this is not something I brought up. "The Washington Post" brought it up. They asked me a question and I gave them a very mundane answer to be honest with you, because I'm not involved. It's not my issue. It's really Ted's issue.
VAN SUSTEREN: I guess they say it's sort of interesting or ironic, I don't know what it is. But Senator John McCain has apparently come out on your side and said it's a legitimate issue. He, of course, was born in a territory in Panama. But he said it's a legitimate issue, and this after you socked him for not being a hero. So that's sort of an interesting twist to this.
TRUMP: Well, I saw that he came out. I saw that he came out pretty strongly. And, you know, again, you're saying it's my issue. It's a "Washington Post" issue. It's not my issue. I was asked the question. What do I know about it? I'm not involved in it.
But I would say that somebody like Ted because the worst thing that can happen is he gets sued by the Democrats and then he is not allowed to run. I would say he should go to court and get what they call a declaratory judgment where you ask the judge to a make a ruling before the fact and I think something like that would be very effective.
I do think it's probably something that he should get off his shoulders because it's a tough issue. I mean, he was born in Canada and a lot of people see that he was a Canadian citizen, I guess, for a long period of time. He gave it up, what, 14 or 18 months ago. And, you know, it's not an easy issue. It's a very complex issue. Hasn't been adjudicated yet fully and it hasn't gone to the Supreme Court. But I think if got a declaratory judgment, that would solve the problem.
VAN SUSTEREN: All right.
TRUMP: I think that's what he should do, frankly. But, again, Greta, this is not my issue. This was just a question that was asked of me. And, you know, I don't care about this issue. I want to win on the merits on my own merits. I don't want to win because of something like this.
VAN SUSTEREN: All right. With time being so valuable between now and Iowa, and we all know how Vermont is going to go come 2016, why are you going to Bernie Sanders' backyard? Actually his hometown?
TRUMP: Well, they really ask, I have a lot of fans up there. I mean, it may be a Bernie Sanders socialism guy, you know, a communism guy. I don't know what the hell he is. Taxes are going to go up to 90 percent with this guy. But they asked me to go and I hear they have 25,000 people showing up. They have lines going for two miles long.
People said they have never seen lines like that in Vermont. And friends of mine that are up there that actually are conservative Republicans, they said would you come up? And we went up. And, you see, what's happening on the news. I guess it's all over the place. They have lines that could be 20 or 25,000 people. That's the good news. The bad news is the event space only holds 1400 people. So who knows what they are going to do. But there is a great outpouring of support. All over the country, we have the outpouring.
I mean, Greta, we had 35,000 people in Mobile, Alabama. We have 20,000 in Dallas. I mean, we have tremendous support. And we have unbelievable support in Iowa, New Hampshire, and South Carolina. Unbelievable.
VAN SUSTEREN: Thank you, Donald for joining us.
TRUMP: Thank you very much, Greta.