July 28, 2022 - Bannon's War Room
48:52
Participants
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| Speaker | Time | Text |
|---|---|---|
| Second quarter GDP numbers just released, and they do show another contraction for a second consecutive quarter, which could signal the U.S. | ||
| economy is in recession. | ||
| This comes after the Federal Reserve raised interest rates again yesterday, with the Fed chair saying the path to avoiding recession has, quote, narrowed. | ||
| Let's bring in NBC News Senior Business Analyst and host of the 11th hour on MSNBC, Stephanie Ruhle, Jonathan Lemire, Mike Barnicle, Cady Kaye, all still with us as well. | ||
| Jeff, good to see you. | ||
| So, let's dig into this. | ||
| Janet Yellen, Jerome Powell, others have said this is not what an economy in recession looks like. | ||
| With low unemployment, plenty of jobs available to people, but yes, inflation at 40-year high, and now by some definitions, as you know better than most, this does show, this new number on the GDP, that the economy is in a recession. | ||
| So, what's the word? | ||
|
unidentified
|
It's a very, very complicated situation. | |
| Listen, people don't like to hear that the economy is shrinking, but remember, by raising rates, that's what Jay Powell is trying to do. | ||
| And to simply say, we have a good economy, or we have a bad economy, come on, Willie, we have to remember what's actually causing inflation. | ||
| You've got a war in Ukraine. | ||
| We've got supply chain issues that are still lingering from COVID. | ||
| This is complicating things. | ||
| But you just laid out a few of the points. | ||
| When you normally have a contracting economy, you don't have sizable wage growth. | ||
| You don't have unemployment as low as it is, right? | ||
| Go out down any main street in America, and you're going to see help wanted, help wanted, help wanted. | ||
| And even housing, while people are concerned that housing prices are getting softer, they are still above pre-pandemic levels. | ||
| And remember, just a few months ago, we were hoping to get some relief in the housing market. | ||
| So what we have on our hands is a complicated, confusing economy. | ||
| I know politicians don't like that. | ||
| Thank you, Andrew. | ||
| So in terms of what we're seeing in the data, whether it is the GDP number, whether it is the jobless claims number, this is an economy that's weakening at a much faster rate than most people expected. | ||
| That's the bottom line. | ||
| Whether we're in a recession or not is not as interesting as the fact that we are weakening really fast. | ||
| In terms of what does it mean, well, there were two FOMC messages yesterday. | ||
| There was a scripted message, which was that inflation is much too high, that yes, the economy is weakening, but don't worry about it because the labor market is incredibly tight and we're going to continue tightening. | ||
| And then there was that unscripted but consequential comment that we are at neutral. | ||
| So depending on which FOMC message you look at, you get very different conclusions with today's data. | ||
| I think the bottom line, Andrew, is we're not out of this taxationary forces yet. | ||
| Yes, inflation is going to come down at a headline level, but it's not going to come down fast enough, given how fast the economy is weakening. | ||
| And that's going to put the Fed in the same dilemma it's been in for the last few months. | ||
| Things are moving in the wrong direction, and they're moving faster than I think some people had expected in the wrong direction. | ||
| But at the same time, there's a view, and I think it's a fair view, which is to say, this is what was supposed to happen if the Federal Reserve was going to do what it's been doing, which is to say, it has been putting its hands on the neck of the economy and trying to slow things down. | ||
| That's what they've been doing. | ||
| And now, it's working, to some degree. | ||
| I mean, it's sort of a very strange feeling to say, this is what we wanted, but we are now going to have a slower economy. | ||
| We may have a recession. | ||
| A recession, the word, I think, is now just a political football as to, you know, what those ads come this fall during the midterms actually say. | ||
| Are we in a recession? | ||
| Are we not in a recession? | ||
| I think most Americans have a lived experience. | ||
| They know what this feels like. | ||
| And this feels very different than what the world felt like, call it 12 months ago, when, you know, it felt like confetti was coming out of the sky along with money. | ||
| And in fact, actually, money was coming out of the sky. | ||
| It was showing up in your mailbox. | ||
| So it's a different feeling. | ||
| And that's where we are. | ||
| I will say the markets have been actually Very contained today. | ||
| Some people would have thought recession, they'd be falling precipitously. | ||
| Not so much. | ||
|
unidentified
|
Steady? | |
| Steady in large part because there's a view now that actually the Federal Reserve won't have to keep its hands on the neck of the economy in the way that it had. | ||
| Yeah, thank you for that. | ||
| I really appreciate it. | ||
| And that was a great background, a kind of history to get us up to this point. | ||
| As you know, this book, it walks through the history of the Fed, but it really looks at what the Federal Reserve has done over the last 10 years, which is unprecedented in the history of the Fed. | ||
| The Fed has really broken the graph of history. | ||
| It has engaged in a series of unprecedented and really, truly radical experiments in printing money. | ||
| And we can walk through all of this. | ||
| But, you know, you're asking me about that subtitle, How the Fed Broke the American Economy, and that's a very confrontational subtitle, and I really stand behind it more and more every day. | ||
| The Fed broke the economy in a few key ways. | ||
| First of all, the Fed's actions helped widen wealth inequality probably more than any single institution in the United States. | ||
| The Fed drove the gap between the very, very richest and everybody else to its widest point in history. | ||
| Secondly, by doing this over a decade, by pumping money into Wall Street, by boosting stock market prices, corporate debt markets, and all the rest of it, the Fed has put us in a terribly fragile position. | ||
| They have created enormous asset bubbles on Wall Street. | ||
| It's what the hedge fund types call the so-called everything bubble. | ||
| And that's what's left us in such a precarious state today, where the Fed is being forced to try to fight inflation by tightening the money supply, but in doing so, it's really risking a massive financial crisis. | ||
| So that's how the Fed has broken the economy. | ||
| It's enriched the rich, and it's made our financial system so fragile today. | ||
| Credit card rates, car loan rates, all up. | ||
| And where are the workers? | ||
| OK, so we're going to see credit card rates go up. | ||
| If you're carrying a balance, try to get that balance down as quickly as you can. | ||
| Your mortgage rate's going to go up if you have a rate that is adjustable. | ||
| If you don't, or you're trying to get a new home, it's going to be higher than it used to be, which also means that housing prices are likely to come down again. | ||
| So that's all of that. | ||
| The second part of your question? | ||
| Where are the workers? | ||
| Help wanted signs all over the place. | ||
| You tell me. | ||
| This is more of the mumbo-jumbo you get from the business media. | ||
| Okay. | ||
| It is Thursday, 28 July, Year of the Lord, 2022. | ||
| You're in the War Room. | ||
| I want to start with our two heaviest hitters, both Lou Dobbs and Steve Cortez, to walk through all of it. | ||
| I do want to say in starting this and going through the math and what's happened, last night we'll talk about Our special on the Federal Reserve, the Lords of Easy Money. | ||
| I want to thank Christopher Leonard. | ||
| Overwhelming response to that from our viewers and listeners. | ||
| But the most important, to give you a signal, not noise, the Chinese Communist Party announced right before the call with Xi and Biden that they're putting in $148 billion, a bridge, an emergency crisis set of loans to back up the banks for the implosion of Chinese real estate. | ||
| More than anything else that will happen today, that will guide your life and affect your life in the days, weeks, months, and years ahead. | ||
| China's real estate market is now officially cratering. | ||
| The Chinese Communist Party understands. | ||
| The tanks outside, the lockdowns, not letting people get to their money, putting the tanks outside, calling Lao Baijing's savings accounts investment products. | ||
| It's not going to work. | ||
| I said yes, I gave an interview to G News on Chinese TV and said, hey, you're standing between them and their money. | ||
| This is where they're going to light the fuse of a revolution. | ||
| And you're seeing it all over the world. | ||
| China today announces one hundred and forty eight billion dollars. | ||
| The crisis they have in real estate is 10 X what we had in 2007, 2008, 10 X. | ||
| It's all going to come home to roost. | ||
| You see this madness today. | ||
| Lou Dobbs, my question to you, because people have come to you for 40 or 50 years, this mumbo, the business media is embarrassing. | ||
| This mumbo jumbo, we're in a recession, not in recession. | ||
| They're trying to run, they're trying to run interference. | ||
| They're trying to be pulling guards for the Biden regime. | ||
| Think of the destruction the Biden regime has done in less than two years, what, a year and a half, the destruction they've done to this economy. | ||
| Mr. Lou Dobbs. | ||
| Steve, first, it's great to be with you. | ||
| Secondly, you're exactly right. | ||
| And what we witnessed the host over on CNBC when he got to the part that he lost the second part of the question, you remember? | ||
| And he says, what was the second part? | ||
| Oh, yes. | ||
| It's an afterthought for the corporatists in this country. | ||
| It's an afterthought for the Biden administration. | ||
| It was the primary purpose of policy for, as you well know, as the former chief strategist of the Trump administration and the White House and the president. | ||
| Men and women in this country, working men and women, their families were the number one priority. | ||
| It was America first, Americans first. | ||
| And to see people talking about the economy in sort of narrow silos. | ||
| When talking about what is happening, we cannot in any way ignore fiscal policy. | ||
| We have watched this administration spend money lavishly. | ||
| We're looking at over 30 trillion dollars in national debt. | ||
| And yes, that exceeds the size of our economy. | ||
| It is a tinderbox right now as an economy because of what we have at the Fed, which is a balance sheet filled with $9 trillion of assets that they've got to sell into this market in order | ||
| To slow inflation, and at the same time, we have to recognize that the Fed pushed that money not just into the American economy, but into Europe, into China, and the result has been, frankly, a disaster, as you reported yesterday. | ||
| We're looking at the prospect here of an administration that will lead us into, I The most dangerous economic times that we have witnessed since the 1930s. | ||
| And the reason I say it is the top two officials of this administration have no idea in the world. | ||
| It's time to be straightforward. | ||
| We have a president who's cognitively impaired. | ||
| He is, he is inoperable. | ||
| And we have a vice president who has no knowledge. | ||
| She has no capacity to communicate. | ||
| She has also an undetermined philosophy that she would bring to any job, but my God forbid the presidency of the United States. | ||
| And who does that leave us? | ||
| That leaves us Nancy Pelosi. | ||
| We are looking at a real serious situation, unless we find some serious people. | ||
| And, by the way, the chief economics advisor in the White House, Steve? | ||
| Brian Deese? | ||
| He's an attorney. | ||
| And he is out talking about two consecutive quarters of contracting GDP don't recession make? | ||
| That is nonsense. | ||
| And just more lies emanating from this Marxist, Dem-led White House. | ||
| Lou, I want to come back to you right now. | ||
| Cortez, hang on for a second. | ||
| Lou, when Lou Dobbs says, I see us on the precipice of the greatest financial crisis we've had from the 1930s, people sit up and take notice. | ||
| You've been through, this ain't your first rodeo. | ||
| Walk us through that. | ||
| When Lou Dobbs looks at the numbers, when Lou Dobbs looks at the leadership, when Lou Dobbs looks at the messaging, what is it that puts the fear of God into Lou Dobbs about what could happen to this nation's economy, sir? | ||
| Your second item in that question, leadership. | ||
| Where do we turn for leadership? | ||
| We have Chuck Schumer working out a deal with Joe Manchin and shame on Manchin for going along. | ||
| He knew what the principles were. | ||
| He knew where he should stand in terms of his integrity and he To give an inch on the Build Back America nonsense at this time when we're looking at hyperinflation, double-digit inflation already at the retail level and, excuse me, the wholesale level and soon to be there with the consumer and the broad purchasing economy. | ||
| We have to have somebody who has the integrity and the intelligence and the knowledge to understand this is a time for constraint In not every area, but in important areas. | ||
| It is a time for constraint in terms of fiscal policy, and it is a time to understand that moderation at the Federal Reserve, there is not a single governor on that Federal Reserve, not a bank president, or a chairman, who has the experience and the proven knowledge and talent to try to front-run a market. | ||
| The first rule, in my judgment, should be, for the Federal Reserve always, follow the markets first. | ||
| And this chairman of the Fed has chosen time and time again to think he's smart enough to anticipate correctly, forecast an outlook that should be biblical in terms of its acceptance on the part of the society and the economy. | ||
| And he has been horribly wrong. | ||
| Transitory inflation. | ||
| What we have now is we're on the brink of hyperinflation. | ||
| To talk about markets that need to be cooled off. | ||
| He wants to keep the pedal down. | ||
| Yesterday, he had to fight first himself. | ||
| Because he had to acknowledge, now, if you've ever been data-driven, this is the time for the Fed to do so. | ||
|
unidentified
|
Because... Lou, hang on for one second. | |
| Hang on for one second. | ||
| We're taking a short break. | ||
| We got Steve Cortez. | ||
| We have Lou Dobbs. | ||
| We've got Dave Walsh is going to join us. | ||
| We're going to talk about energy. | ||
| We're going to talk about the markets, talk about the Fed, all of it. | ||
| Also this mansion bill. | ||
| Lou Dobbs, Dave Walsh, the great Steve Cortez, all next in The War Room. | ||
|
unidentified
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The epidemic is a demon and we cannot let this demon hide. | |
| War Room, pandemic. Here's your host, Stephen K. Bannon. | ||
| Far be it from me to say that Walmart missed their numbers because they took out my pillow, but hey, they did. | ||
| You know, correlation is not... was it consequence? | ||
| I don't know. | ||
| This is what Cortez told me. | ||
| MyPillow.com. | ||
| Walmart took them out, but you can still go to MyPillow.com, promo code WORM, and get the classic pillow. | ||
|
unidentified
|
$19.88. | |
| Got the sheets for $39. | ||
| Got buy one, get one free all over. | ||
| But just go there today. | ||
| The armor-piercing shell. | ||
| The great patriot that is Mike Lindell. | ||
| MyPillow.com. | ||
| Go there. | ||
| Check out our square. | ||
| All the great sales are right there. | ||
| And thank you for your support. | ||
| Love Mike Lindell. | ||
| Love the MyPillow guys. | ||
| Thank you for their sponsorship. | ||
| Lou Dobbs, essentially Trump will tell you, you've been the mentor to Donald Trump over 40 years plus with your new show. | ||
| Myself, Cortez, all of us cut our teeth on watching Lou Dobbs. | ||
| You only got to speak truth to power for decades and decades and decades about trade balances and trade deals and everything about the American manufacturing getting sent overseas. | ||
| Sir, this morning we did the cold open in your honor. | ||
| We had Stephanie Ruhle, Uh, and Andrew Ross Sorkin. | ||
| What's your assessment of when they, they basically tell the war room audience that the economy's too confusing. | ||
| It says, you know, so many signals are so confusing. | ||
| Just sit there and hear us hear what our spin is. | ||
| Lou Dobbs, your assessment, sir. | ||
| Journalists first job was to provide answers, not to create questions and greater ambiguity, but they seem to be very comfortable with that role. | ||
| Because that keeps them out of the pitfalls of their corporate commitments. | ||
| They're masters in the boardroom who control the business press in this country. | ||
| And it's not just NBC or CNBC or MSNBC, although Comcast does at times look to corner the market on corporatist reporting. | ||
| It is a shame. | ||
| We have to be so skeptical of all of the business press, all of the corporatist media. | ||
| It's no better in business than it is in politics. | ||
| There is a decided bias, there is an agenda, and it is woeful. | ||
| And as to Walmart missing its earnings, I think it's something we used to call karma. | ||
| When they pulled Mike Dell's product, the worst thing happened. | ||
| And when you have people who pull your best-selling product or one of your best-selling products for politics, these are the kinds of things that result. | ||
| It's not business, it's politics. | ||
|
unidentified
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100%. | |
| Lou, how can people, people are going to want to really understand what Lou Dobbs thinks of this. | ||
| How do they get to the podcast, which is daily? | ||
| How do they get to your writings? | ||
| How do they get to you on social media? | ||
| I love it. | ||
| I love the podcast. | ||
| It's fantastic. | ||
| It's one of my favorite podcasts. | ||
| I catch it every day. | ||
| to get her on most of the platforms, but also on all of the platforms for the podcast, which is The Great American Show. | ||
| Don't you like that name? | ||
| I love it. | ||
| I love the podcast. | ||
| It's fantastic. | ||
| It's one of my favorite podcasts. | ||
| I catch it every day. | ||
| Appreciate it. | ||
| I gotta get my Lou Dobbs fix. | ||
| Been doing it for 50 years or 40 years, however long you've been doing it, Lou. | ||
| You gotta get my fix. | ||
| Lou Dobbs, you're an American icon. | ||
| It's just 25. | ||
|
unidentified
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You're making me sound much older than my... Okay, it's 50. | |
| You're a teenage bride. | ||
| Your wife, there was a teenage bride. | ||
| I know she's the decision maker, too. | ||
| I'm glad she's the producer. | ||
| That's why the show's so great. | ||
| We love her. | ||
| And thank you so much for coming on, Lou. | ||
| Really appreciate it. | ||
| Thank you. | ||
| Lou Dobbs. | ||
| Cortez, I had to start, such an iconic day, we had to start with Lou, as you know. | ||
| And back in the old days, you had Lou Dobbs, you had Steve Cortez, you had, you would go to those shows, I'd watch them all the time. | ||
| They gave it to you straight, wasn't always pleasant. | ||
| But this thing now is like, we get more comedy polls, what we call them, you know, laugh out louds. | ||
|
unidentified
|
Right. | |
| Off of CNBC than we do off of MSNBC. | ||
| And MSNBC we're getting a lot. | ||
| But I mean, CNBC, it's just, it's highest. | ||
| Last night, I just want to tell you is that the lords of easy money, one hour. | ||
| We asked Christopher Leonard, Steve, at the end of it. | ||
| And this guy is steady Eddie. | ||
| He's not a bomb thrower. | ||
| We asked him, give us, we had a couple minutes left, tell us the one thing, piece of advice about going for information, how do people find out more about the Fed, all that. | ||
| He says, my one piece of advice is tell your audience under no circumstances watch CNBC. | ||
| Right. | ||
| They're just a bunch of cheerleaders. | ||
| Steve Cortez, assessment. | ||
| And I concur and I take no pleasure in saying that because it used to be a great network. | ||
| I worked there for a long time. | ||
| It's where I cut my teeth in broadcasting and so many amazing broadcasters like Lou Dobbs. | ||
| At one point worked there, but what I saw happen when I worked at CNBC was during the Obama-Biden administration, when GE was at that point the corporate parent of CNBC, GE increasingly became effectively a department of the Obama administration, let's face it, and they put enormous pressure on CNBC to always pursue narrative rather than real storytelling, rather than fact-finding, rather than real journalism. | ||
| And broadcasting. | ||
| So a network that used to provide a really valuable service to provide financial and market literacy and information to the masses, unfortunately, became a spin dominated enterprise. | ||
| And that's what it is to this day. | ||
| Speaking of spin this morning, watching all of these business media and corporate media talking heads try to spin this recession into something that's actually positive. | ||
| They look like that girl in The Exorcist. | ||
| Their heads are spinning so hard, trying in some way to excuse what is a Biden recession and a very deep Biden recession at that. | ||
| So the numbers today confirm what we have long known, what the American consumer has long known, that we are in a recession. | ||
| And by the way, one thing you'd notice about business media and folks like Stephanie Ruhle, is it's all sloganeering. | ||
| Very rarely do they bring up numbers. | ||
| Very rarely do they show you a table, charts. | ||
| Very rarely do they go to the math. | ||
|
unidentified
|
Why? | |
| Because the math is so damning. | ||
| For example, you were talking about Walmart. | ||
| Walmart now, by far the biggest retailer of the United States, it has now massively missed its numbers twice in In just the last three months. | ||
| And this is from a company, while I don't appreciate at all the ideology of the management in Bentonville, but I will be the first to concede that these are killers, the managers of Walmart. | ||
| It is one of the best run enterprises in the world. | ||
| And yet the stock price has absolutely cratered, gapped down massively twice in just the last three months. | ||
| Why? | ||
| Because even Walmart, even those executives, as skilled as they are at their craft, they cannot handle The uncertainties of a Biden economy, where the consumer is crashing. | ||
| We also found out of this GDP report this morning, five consecutive quarters now of lower real disposable income. | ||
| Real wages are crashing in America. | ||
| Okay, Stephanie Rule said it's too complicated. | ||
| Andrew Ross Sorkin said this thing is so murky. | ||
| That's where we got Cortez on here, in the war room. | ||
| Walk us through your assessment of yesterday afternoon, the Fed, the pals, you know, reading tea leaves. | ||
| and this morning's announcement, sir. | ||
| You bet. | ||
| So listen, regarding yesterday, the Fed did the right thing. | ||
| They need to aggressively raise interest rates. | ||
| They also need to get far more aggressive in reducing the balance sheet, which they have not had the guts to do yet. | ||
| But the Fed has put itself into a terrible corner. | ||
| There are no good options now. | ||
| They must raise interest rates because inflation is out of control and no one should assume that it can't get massively worse ahead. | ||
| Given what's going on with natural gas, we showed that chart earlier. | ||
| natural gas, which is the primary fuel for factories and farms in America. | ||
| It is once again, absolutely soaring. | ||
| So no one should assume that the highs we saw in June, for example, and things like crude oil and gasoline, that those are permanent highs or lasting highs. | ||
| We can go right back there very, very quickly. | ||
| So the Fed needs to be aggressive. | ||
| I'm glad they were yesterday. | ||
| It's a shame that Jerome Paul chose to lie to the American people for over a year, telling us that it was quote transitory when he absolutely had to know better with his army of PhDs. | ||
| And regarding today's news, another aspect of the spin that folks like Powell, like Janet Yellen, like Stephanie Ruhle, the spin will be, well, this is a global issue. | ||
| This is somehow Putin's fault. | ||
| No, the United States is worst in show. | ||
| And what I mean by that is compared to all the other industrial economies in the world, we are literally in the worst shape. | ||
| And I want to back this up with data and math. | ||
| So if we could go to chart one, this is on PMIs, Purchasing Managers Index. | ||
| And I really like to watch these, Steve, because they're done all over the world and really done in the same way. | ||
| So it's a true good apples-to-apples comparison of what's going on. | ||
| This is the composite which combines manufacturing as well as services. | ||
| And these are the guys that have to make the decisions about buying, using vendors, buying stuff. | ||
| So this is really the beating heart of an economy. | ||
| Very forward-looking, beating heart of the economy, and it's the closest thing we've got to a global look, because the math they get is pretty well, even from places like as close to the CCP, right? | ||
| That's exactly correct. | ||
| And if we look at that chart, unfortunately, and again, it gives me no pleasure to say this, look at where the United States is, that's compared to the G20. | ||
| We are in the cellar. | ||
| We are literally in the basement. | ||
| The lowest PMI in the world among industrial countries. | ||
| 47.5 is our number. | ||
| Anything under 50 signals contraction. | ||
| And of course, we are in a contraction. | ||
| We are in a recession. | ||
| When I saw this, Steve, by the way, you know what? | ||
| It really made me think of one of my favorite movies, Miracle. | ||
| There's a great scene. | ||
| Where Coach Brooks comes in, Herb Brooks, and he comes in and he tells the American players, those young college kids as they were about to play the Soviets, he said, you were born for this. | ||
| You were born Americans. | ||
| You were born to be hockey players. | ||
| Well, I'd like to say that to the American people. | ||
| You were not born to be the worst in show in the world economically. | ||
| You were born for greatness. | ||
| You were born for prosperity. | ||
| You're born to be an American, and we have a glorious inheritance that is being squandered, an inheritance of success. | ||
| Of expectations that are high and expectations that are then exceeded economically. | ||
| So we have the opposite situation right now. | ||
| We have to dispassionately assess it, right? | ||
| We can't just have happy talk. | ||
| We can't dive into the mumble tank the way the corporate media does. | ||
| So we need a dispassionate assessment of where we are. | ||
| The situation is incredibly dire. | ||
| And how do we get out of it? | ||
| And how do we claim, you know, what again, what is our birthright as Americans, which is excellence, excellence in all facets of life. | ||
| Including in the economy. | ||
| We cannot settle for this current recession that we're in. | ||
| And it is deep and it is likely to get worse if we don't immediately elect the right America First workers. | ||
| I can show one more chart here too, Steve. | ||
| More bad news just today at the company. | ||
| I tell you, hold hang on one second. | ||
| We'll do that after the break. | ||
| I want to hold that. | ||
| Yeah, I want to take a break. | ||
| We're going to do this. | ||
| We're also going to talk about, of course, their solution overnight was to come up and talk about a trillion dollars worth of spending and taxes and all that. | ||
| We're going to get to all of this. | ||
| We got Dave Walsh to talk about the energy, the global energy crisis continues to metastasize until somebody, some adult sits there and goes, we've got to get in a room and figure this thing out. | ||
| We're gonna drive over the cliff into the abyss at Mach 2. | ||
| All next in The War Room. | ||
|
unidentified
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War Room. | |
| Pandemic. | ||
| Everything's begun and you are over Cause we're taking down the CCP Spread the word all through Hong Kong We will fight till they're all gone We rejoice when there's no more Let's take down the CCP Pandemic with Stephen K. Bannon The epidemic is a demon and we cannot let this demon hide War Room. | ||
| Pandemic. | ||
| Here's your host, Stephen K. Bannon. | ||
| Okay, MyPillow.com, make sure we've talked about Walmart, we've talked about even Lou Dobbs agrees, pulling for political reasons. | ||
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| Let's keep those factory lines open. | ||
| MyPillow.com promo code, War Room. | ||
| Go check it out today. | ||
| Action, action, action. | ||
| Also, my guy Eric Prince, he's obsessed with security of communications. | ||
| Unplugged.com slash war room. | ||
| Go check that out today. | ||
| You see the app he's got. | ||
| The phones are not ready because of issues with supply chains. | ||
| Won't be ready till the fall, but he's got an app ready to download, protection, all the other apps. | ||
| They can't monetize your app. | ||
| They can't track you. | ||
| They can't find out what you're looking at. | ||
| And they've also got an encryption key, but go check it out. | ||
| It's beyond my technical capabilities, but it's quite brilliant. | ||
| We use it here at the War Room, so go to unplugged.com, go check it out today. | ||
| Cortez, tell me about, you've got another, you've selected another equity as emblematic of what the problem is. | ||
| When you take these stocks, you're not saying buy the stock, short the stock, you're using these as examples. | ||
| Correct? | ||
| Let's talk about your next one. | ||
| Because some of these specific companies are reflective of the larger whole, and I'm not trying to pick on these companies, but they're important names for us to keep an eye on. | ||
| And the newest today is Stanley Black and Decker, the tool maker, which is right now, as we speak, down 12% on the day, Steve. | ||
| And again, I'm not just picking on them, but Stanley Black and Decker, like almost any company that is consumer facing, is having enormous problems right now. | ||
| Why? | ||
| Because the consumer simply can't handle Biden's inflation combined with Biden's recession. | ||
| But I want to put this chart up of SWK. | ||
| That's the ticker for Stanley. | ||
| For Stanley tools, because we go back to this is when Biden took office. | ||
| I think this is very reflective of the bigger reality out there for the economy. | ||
| When Biden took office, Stanley was at $176. | ||
| And if you see that up arrow there on the left side of the chart, he inherited tremendous momentum. | ||
| The baton toss, the handoff. | ||
| From Trump to Biden really gave him an economy that was roaring back to life, especially in the more reasonable jurisdictions, places like Florida that stayed free and open. | ||
| So he had incredible momentum. | ||
| The Trump boom 2.0 was ascendant. | ||
| But we see then that into the spring of 2021, unfortunately, Stanley Black and Decker topped out there and has absolutely crashed ever since, has been more than cut in half off of its highs of 2021. | ||
| And I think that this stock, unfortunately, is emblematic of a much larger problem in the U.S. | ||
| economy, and this really portends terribly, Steve, for construction and for housing going forward. | ||
| When you have a toolmaker missed like this, particularly one that is as big and ubiquitous in the American economy as Stanley Black & Decker is, that is a really, really poor sign. | ||
| It portends for, unfortunately, far more pain ahead in construction, in the consumer sector, and it's just another really bearish sign. | ||
| When you combine that with the news out of Walmart, when you combine it with the macro data, with the PMI, Which we showed earlier, this is a terrible Biden economy, and it's one that is decelerating, unfortunately. | ||
| Talk about decelerating. | ||
| I want to get to two other objects I want to get to. | ||
| It's a decelerating, and as you say, the real underlying economy is much worse than people think. | ||
| The Financial Times of London broke this morning a brutal story. | ||
| I've had it up on getter the last couple of days about the tanks outside, about the 30% drop. | ||
| in real estate prices in China. | ||
| But the Financial Times today has a headline of coming out. | ||
| China's central bank seeks to mobilize $148 billion bailout for real estate projects. | ||
| The leverage over there, the phony numbers, now they got the tanks outside the Bank of China, not letting people get to their savings. | ||
| Remember, the 50% savings rates, the biggest geopolitical asset the CCP has is Lao Baijing's savings, and they ain't letting them get to it. | ||
| Steve, how big a deal... Well, this is 10x what the American problem was with the mortgage loans in 2007 that led to the 2008 crash. | ||
| How big a specter over the world economy, Brother Cortez, is this? | ||
| Oh, listen, it's massive. | ||
| And that's what makes me more concerned about this recession, this Biden recession, than even the 08-09 recession, as bad as that was. | ||
| At that time, you had a massive problem in the United States, but China actually powered through. | ||
| There was no recession in China then. | ||
| Now, a lot of that was built on a mountain of debt and some phony numbers. | ||
| So, I mean, to some extent, it was built on quicksand. | ||
| But the point is, You still had an accelerating China at the time that you had a receding United States. | ||
| Now you have the two largest economies in the world who are crashing in concert, who are crashing in synchronicity right now, both the U.S. | ||
| and China together. | ||
| That makes this present situation Far more dangerous, in my view, from looking at a global perspective. | ||
| And in addition to that, you have massive inflation, Steve. | ||
| So we have the worst of both worlds. | ||
| A decelerating economy in the United States, a crashing economy in China, with prices rising. | ||
| That's not supposed to happen in a normal business cycle. | ||
| Back in 08 and 09, as bad as things were, and a lot of people were really suffering, at least the necessities of their life were getting cheaper for them, because it was a deflationary recession. | ||
| We now have an inflationary recession, where as your real wages crash, the cost of the goods that you need, the necessities of life, not the luxuries, the necessities of life, continue to accelerate higher. | ||
| So for that reason and from that perspective, I think that the situation right now is actually even more dangerous than the Great Recession of 08-09. | ||
| I think to come up with similar corollary, Steve, you've got to go all the way back to the Great Depression. | ||
| You've got to go back almost 100 years, I think, for applicable analogs to what's going on right now in the global economy. | ||
| You're the second, Lou Dobbs first in the first segment, now you in the C block. | ||
| This is yesterday's headline in the Financial Times. | ||
| World's biggest consumer names announce soaring price increases. | ||
| That's all getting passed on to you. | ||
| This is why at Walmart, what they said is that, hey, the folks are so broke after they come off our gas pump, Once they buy the food, there's nothing, they can't buy the T-shirt, they can't buy the shoes, they can't buy the CDs. | ||
| For the kids, it just can't, there's no money. | ||
| That's why their inventory has got a massive problem. | ||
| The other thing to remember, and this is where we're gonna spend a lot of time walking through the next couple of days and weeks so you fully understand it. | ||
| The world right now is leveraged to this $300 trillion of debt. | ||
| When you take it all, when you add up, you add up government debt, corporate debt, personal debt, We're awash with $300 trillion in debt predicated by... This is what Cortez and I have been trying to teach you or lay out the framework so you can think about it. | ||
| The structure of the world's economy since 2008, the solution of the central banks was to go to negative interest rates, zero interest rates. | ||
| In Tokyo, the Bank of London, the ECB, European Central Bank, and the Federal Reserve. | ||
| The whole structure of the modern world economy It's predicated upon free money, just printed money, just fiat currency. | ||
| That's it. | ||
| $300 trillion in debt. | ||
| It's not structured to actually have interest rate. | ||
| If Volcker came in and did the Volcker move, I got that up on Getter, if he came in and did his 500 basis point hit, the whole thing would collapse. | ||
| You can't, so we're in this situation and here's what's happening now. | ||
| The phoniness of it is coming to light. | ||
| The biggest phoniness is in China and the Chinese Communist Party. | ||
| The way they powered through the 2008 was just to print more. | ||
| What you're seeing now, and that's why they have the 30% drop in real value of their property. | ||
| They can't let the revolution in China, it's not this time going to be a Tiananmen Square. | ||
| It's going to be on the steps of that Bank of China branch in Henan province. | ||
| That's where they sent the tanks there. | ||
| Lao Bai Jing is going to sit there and go, that's my money, right? | ||
| And I've put the deposit on the apartment that's now 30% less, so you've already wiped out my equity. | ||
| I want my cash back. | ||
| I want my money. | ||
| I want to get to my savings. | ||
| Those tanks, the revolution in China that's coming, and they just announced, when the CCP announces a $148 billion, ladies and gentlemen, billion dollar bailout of their banks. | ||
| And by the way, where are they getting the money? | ||
| Last time I looked, they're the guys buying our bonds. | ||
| Remember, they come back to these deficits and all those big deficits. | ||
| We got three choices. | ||
| You either got to raise taxes for revenue, which they ain't going to do. | ||
| They're either going to sell securities, bonds to the Japanese insurance companies and to the Chinese Communist Party, which the Chinese tell me that they're tapped out. | ||
| They got to take care of their own mess. | ||
| Or you just continue to print money, run massive deficits and throw more gasoline, more. | ||
| This is what the American Recovery Project was in the spring, in March of 2021. | ||
| And who are the three guys telling you it's going to be massively inflationary? | ||
| Steve Cortez, Steve Bannon and Peter Navarro on The War Room. | ||
| We told you. | ||
| It was going to happen, and that's where we are now. | ||
| Last night, the biggest signal we have, ladies and gentlemen, forget all the noise you're hearing and all the running around, they're saving Biden's agenda, ba-bing, ba-bing, ba-bung, forget it. | ||
| Biggest signal that we're going to take the United States Senate. | ||
| was Joe Manchin and his guys overnight coming up with a 700 billion dollar. Steve Cortez, is that not simply a payoff? They understand the clock's running out. | ||
| Right. They got up, well, they got control. They have to pay off the lobbyists and their corporate sponsors and their donors. And this is the wet kiss they give them on the way. Am I wrong in that? Or is that what this whole thing's about, sir? You're 100% right. And I think Manchin was channeling Frankie Pentangeli, Frankie Five Angels from the Godfather when he said, let's hit hit them now while we still have the muscle, right? | ||
| And listen, from a gangster perspective, it makes sense. | ||
| Now, it's terrible for America. | ||
| It's terrible for our country. | ||
| It's totally ethically wrong. | ||
| But from a gangster perspective, that's what Manchin said. | ||
| He said, let's hit them now while we still have the muscle. | ||
| Because we're not going to control the Senate in a few months. | ||
| And they are very aware of that. | ||
| And not just that, Steve, but there's a gang coming in. | ||
| Speaking of good gangsters, our gangsters. | ||
| There are senators coming in, I believe. | ||
| Outsiders. | ||
| People who mean it. | ||
| Real America First stalwarts and fighters. | ||
| I mean people like Blake Masters and Adam Laxalt. | ||
|
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|
J.D. | |
| Vance, this group, Eric Greitens, this group that is coming in, this group means business, and they're not going to put up with this kind of nonsense any longer, so I think you're exactly right. | ||
| They did this while they could, and it's super unfortunate for the American people. | ||
| It's only going to inflame the existing inflationary bonfire in this country right now, so it's terrible for our country, but it's pretty predictable gangster politics from the Dems, with a hand from establishment Republicans, unfortunately, as well. | ||
| By the way, we've had the CHIPS bill, which we support the CHIPS part to bring the manufacturing back. | ||
| I was a big advocate of this in the Trump White House with Peter Navarro. | ||
| Of course, other forces led the president not to do it. | ||
| However, that bill for the $50 or $80 billion you have and really making the companies bring it back and help underwrite that for a degree, it's got another couple hundred billion dollars of corporate welfare. | ||
| Of course, it's got to have that. | ||
| On top of it, this thing last night, they're saying it's $390. | ||
| It's $700 billion of spending. | ||
| It may be some tax increase. | ||
| For instance, to make the war room in Steve Bannon feel better, they say they're going after carried interest, but they're really not going after carried interest. | ||
| That's all phony because their donors are not going to let them. | ||
| It's going to be out there for the headlines. | ||
| It'll never happen. | ||
| What will happen is the 700 billion. | ||
| So correct me if I'm wrong, brother, Cortez, in the last 24 hours, in this inferno, burning dumpster inferno of an economy. | ||
| actually come out in your face and say we got another trillion dollars. | ||
| You add the 750 and the 350 in my, I'm rounding up, it's roughly a trillion dollars of literally corporate giveaways. | ||
| Is that correct, sir? | ||
| No, absolutely. | ||
| And again, which is only going to massively accelerate the existing inflation that's out there. | ||
| Government spending is a massive cause of this inflation in the first place. | ||
| And so their answer is, well, let's just do more of it. | ||
| And by the way, regarding that chips bill, and to connect that to your previous discussion of what's going on in China, it's outrageous that the United States is totally dependent upon Taiwan for chips, and we must onshore that production. | ||
| On a broader scale, we must decouple entirely from China. | ||
| But to connect this to the situation what's going on internally in China, I think this is important. | ||
| As the CCP is increasingly put into a corner by its own people, and by this financial predicament that they're in, unfortunately, they are incentivized to try to create a massive diversion. | ||
| And thug regimes have done this historically. | ||
| So they are very incentivized. | ||
| Steve Cortez, what's your social media? | ||
| moves against Taiwan. | ||
| They are also incentivized because we have an absolute weakling in the Oval Office who they neither fear nor respect. | ||
| So this is an incredibly dangerous situation and connect the economic to the geo-strategic. | ||
| And unfortunately, the CCP has good and valid reasons for its own power to try to get much more aggressive regarding Taiwan, incredibly dangerous for the world and for the US economy. | ||
| Steve Cortez, what's your social media? | ||
| How do people track you down? | ||
| Yeah, please follow me at the getter. I'm at Steve very simple I'm also at Twitter, at CortezSteve, Cortez with an S. To make you feel better, Cortez, thank you. | ||
| To make you feel even better, we're gonna come back, we got the one and only Dave Walsh, we're gonna talk about the global energy crisis, how it just not only affects the energy, but it's metastasizing now into the food of the world. | ||
| Everything else going on, we're about to have a great famine, brought to you by Human Action. | ||
| Okay? | ||
| Short commercial break. | ||
|
unidentified
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Dave Walsh next in the War Room. | |
| ...begins at CPAC Texas. | ||
| Join President Trump, Sean Hannity, Steve Bannon, and a packed house of conservative all-stars. | ||
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A big red wave is coming. | |
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| Okay, welcome back. | ||
| It's the 27th of July, the year of the Lord. | ||
| Excuse me, the 28th. | ||
| You know, I'm trying to go back in time. | ||
| 28th July, year of the Lord, 2022. | ||
| Got Dave. | ||
| By the way, I want everybody in Dallas, the North Texas area, all the local environments, To be there, we're going to do a lot of special stuff at CPAC, taking the show on the road. | ||
| Really look forward to seeing everybody, meeting the posse, and sharing your latest thoughts, analysis, and observations, as I say, on Getter. | ||
| Make sure you go on Getter. | ||
| You will triple the experience. | ||
| Totally free. | ||
| Learn how to download the app. | ||
| Super simple. | ||
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unidentified
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You've got to have Hardenwell and Captain Bennett do that tutorial. | |
| Super simple. | ||
| I can do it. | ||
| You can do it. | ||
| And I'm a moron when it comes to that stuff. | ||
| Let's go to Dave Walsh. | ||
| What have murderers wrote this morning? | ||
| Opening act in the war room. | ||
| Lou Dobbs, Steve Cortez, Dave Walsh. | ||
| We're not messing around here, right? | ||
| Dave Walsh. | ||
| First off, Dave, you're a numbers guy, like Cortez, the reason we have you on here. | ||
| That number doesn't seem right to me. | ||
| Some of the math doesn't add up about this GDP number, does it, sir? | ||
| Well, we looked a month ago at the inflation data report from Commerce that was about 8.6%. | ||
| And a lot of data, if you go back and look at the 1974-72 way of calculating inflation, looks more like 18-19% if the market basket, including energy, fully weighted is inside of that. | ||
| We're in the high teens. | ||
| So I'm going to question the GDP numbers. | ||
| And one of the key reasons, we talked yesterday about gas utilization. | ||
| At the pump, car gasoline down 8%. | ||
| Demand on that down 8% year-on-year. | ||
| This is people driving to work, driving to restaurants, driving to stores to buy things. | ||
| That's a fundamental measure of activity way off. | ||
| Demand is way off. | ||
| And I said even in the 2008 significant recession-depression we had, gasoline utilization dropped about 4%. | ||
| This year, year-on-year, down 8%. | ||
| So, I'm saying the economic downturn is with us. | ||
| It's real, measured through energy utilization, especially. | ||
| So, is it more than what's being broadcast? | ||
| Way possible. | ||
| Way possible. | ||
|
unidentified
|
Yes. | |
| Okay. | ||
| It's 100%. | ||
| The update they're going to have, this thing's going to be 1.5% down. | ||
| Write this down on July 28th. | ||
| I said it. | ||
| You see when they update this thing in 30 or 45 days, it's going to be worse. | ||
| You can tell. | ||
| You can feel it. | ||
| and that inflation number is the real inflation 18 and 19 percent is real that's a real deal not this way they they try to spin and try to lie to you i'm going to go uh on the natural gas and this one i'll make sure uh we we understand is that the natural gas is just not for heating your home air conditioning or the gasoline you know all that gets to think it's in every product But particularly in food. | ||
| I want you to talk about it, because the coming increases in food are still going to be there. | ||
| That's why they keep saying, oh, we don't want the basket to include energy and food. | ||
| Well, hey, that's why Walmart's not selling any other goods. | ||
| Because the energy and the food cost. | ||
| And food's only going to get, it's going to get exacerbated. | ||
| Walk me through the correlation between the natural gas cost and the food cost, sir. | ||
| Well, it's in there in three ways. | ||
| First of all, the fertilizers. | ||
| Urea, nitrogen, and ammonia are three of the four key modern age fertilizers used globally, are all natural gas created fertilizers. | ||
| That's step one, that's huge. | ||
| A lot of planters, Alfie Oaks had been on a few months ago, reported out to us that they have substantially reduced the fields that they've fertilized and planted in the spring because of the four times cost uplift of those fertilizers huge cost upticks that's one the transportation of of uh... vegetables made produce is a huge portion of the cost all driven by what that's that's diesel mainly in that case dot natural gas | ||
| but then the the the cold chain the cooling you know forty about forty percent of our electricity is now natural gas fired power generation plants so the cost of natural gas is massively inside now over electricity pricing which goes to chilling the foods to keep them on the shelf and viable and consumable So you've got now 60% of the cost of foodstuffs is now the energy component used to be a much smaller portion. | ||
| So, shortages because of the lack of planting due to high costs in the planting season of fertilizers plus the transport and refrigeration of foods driving the price up as energy is a huge, huge component of the cost of foods. | ||
| Dave, in the couple of minutes I've got left with you, have you seen any action taken by this administration, action they could take to really start to help? | ||
| I know they're playing games with the Strategic Petroleum Reserve, but have you seen any fundamental action to get them off of their crazy Green New Deal, transitioning to a sustainable energy economy, sir? | ||
| No. | ||
| The bill being proposed now that suddenly Manchin appears to have gotten on board with is, again, All about, embedded in it, all about environment, all about environmental extremism, nothing in it about energy strategy. | ||
| Not much. | ||
| And to give you an example, what's happened globally? | ||
| We've got 54 nuclear power plants being built globally. | ||
| Quite a few. | ||
| Only five between Western Europe and North America. | ||
| Five of the 54. | ||
| That's the result of years and years and years of this kind of administration policy and the Nuclear Regulatory Commission making these plants completely non-competitive to build in regulating the build costs, things of that nature. | ||
| Just to give you an idea how we stand, this bill is all about more subsidizing, more solar, more wind, Some nuclear, but that's, you know, let's see how that goes. | ||
| That's not a bad thing, that piece of it, but mainly it's an environmental bill. | ||
| It is not an energy bill, and it's about higher taxes. | ||
| That's all negative. | ||
| We need more baseload energy capacity electrically in this country. | ||
| We don't need more wind and solar right now. | ||
| We're shuttering too much of our reserve margin. | ||
| The excess generation capacity needed to prevent brownouts and blackouts we're programmatically reducing. | ||
| A lot by the imposition of even new credits and inducements for yet more and more solar and wind. | ||
| Again, reserve margins will be down by 2030 by about half of what they were in 2015. | ||
| Huge drop. | ||
| What Dave Walsh is saying, we're going to become a third world country as far as energy. | ||
| Dave, real quickly, what's your social media on Getter? | ||
| How do they get to it? | ||
| It's at DaveWalshEnergy on Getter. | ||
| Thank you, Steve. | ||
| We'll have you back on, brother. | ||
| Dave Walsh. | ||
| He's laid it out for you. | ||
| We're heading to be a third-world country rapidly, as far as energy production goes. | ||
| Somebody that should be full-spectrum energy dominant, like under President Trump. | ||
| Short break. |
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