Aug. 26, 2022 - Bannon's War Room
48:42
Participants
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America. That's the incendiary new book from former Trump trade czar Peter Navarro, available on Amazon today. Stephen K. Bannon calls Taking Back Trump's America a brass knuckled insider's account of the merciless 2020 fall and miraculous 2024 rise of the White House of Trump. Taking Back Trump's America is the blueprint for a new Trump White House that will truly make America great once again. Order Taking Back Trump's America today | |
| on Amazon. | ||
| Peter K. Navarro in for Stephen K. Bannon. | ||
| The Admiral wanted me to come in. | ||
| He's on a brief assignment and he insisted he ordered me. | ||
| I follow orders to always have a packed show. | ||
| So this one's going to fly pretty fast today. | ||
| We're going to go over this latest revelation with Zuckerberg Rogan about FBI pressure About the laptop from hell and we'd be very fortunate to have the great Miranda Devine in with us later in the show. | ||
| She wrote the definitive work on the laptop from hell. | ||
| We got the Federal Reserve Feckless Chairman Jay Powell in Jackson Hole, Wyoming. | ||
| After he finishes kind of dusting off and burying the figurative political corpse of Liz Cheney, let us all rest in peace for her, he's going to try to bury the U.S. | ||
| economy. | ||
| Steve Cortez will be right in on that. | ||
| We are going to try to get the great Doc Hatfield in to talk about what the committee, James Clyburn's committee on the Hill, Uh, has done to try to blame me for hydroxychloroquine and the boss for the vaccine. | ||
| And then, uh, we'll end the show, um, on a somber note, um, as we, uh, commemorate, uh, the one-year anniversary of the Kabul Airport terrorist attack, uh, with Sam Faddis. | ||
| But to kick things off, what I want to do is talk a little bit about Jared Kushner and pose the question here whether Jared Kushner is the Hunter Biden of the Trump family, okay? | ||
| So, Denver, if you can, play that clip for me now and then we'll try to wax at least semi-eloquent on what I mean by that outrageous allegation that somehow Jared could be Hunter Biden's equivalent. | ||
| He's asking for a special master and asking for them to stop going through the stuff as they may be right now. | ||
| The New York Times has got the item today from Maggie Haberman and some of the other reporters that apparently there were 300 classified documents at Mar-a-Lago over the last year or so and they, you know, they think they've gotten them all by now. | ||
| Why would the former president have that many classified things at Mar-a-Lago? | ||
| So I'm not familiar with what exactly the contents were and but what I'll just say from my personal experience is that again in the campaign in the transition we had a very innocent meeting with the Russian ambassador and then you know Four months later, you're reading that the intel agencies are leaking to the Washington Post that we requested this secret back channel. | ||
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And then the New York Times and CNN go crazy for a weekend accusing us of treason. | |
| And then it turns out such a thing never really happened. | ||
| And so, you know, I just think you have to be very careful with what you read and obviously just wait for the facts to develop. | ||
| But I mean, there's been so many things that have been hyperventilated about over the last years that turned out to be nothing. | ||
| And that's, again, why I wrote this book, was I wanted people to really understand what it was like to be living through that. | ||
| when you know you've done nothing wrong, you're there trying to get good things done, and people are out there accusing you of all these crazy things, and you have to prove that those things didn't happen. | ||
| Right, and you know they didn't, and it almost took you down, and knowing that you were innocent, you gave all your time and all those interviews, and still had to wonder if the process would work. | ||
| I'm gonna bring it to you. | ||
| No, no. | ||
| So Kushner's out with his new book, and the one tough, the one single one tough question he gets from, of all people, Steve Doocy, who's usually the gentlest person in the world, Kushner dodges and dances around, and Brian Kilmeade, kind of like his daddy, comes to Jared's rescue. | ||
| Here's the thing. | ||
| This whole Kushner issue, I spent four years with the guy in the Trump White House and a good bit of time earlier than that on the campaign. | ||
| And I've said publicly, and I'll say it again here, that this book that Kushner has put out is largely a work of fiction. | ||
| What Jared's MO has always been is to claim credit for whatever worked in the Trump White House. | ||
| NAFTA would be for an example, renegotiating that. | ||
| Assign blame to somebody else for whatever went wrong. | ||
| He totally mismanaged large segments of the pandemic, but he would always try to shift blame to other people. | ||
| And then when he didn't get his way, he'd run to daddy-in-law in the East Wing at night and try to kind of have his way. | ||
| And it's there's no there's no secret why we had four chiefs of staff in four years, which is unusual for a presidential administration is because none of them could effectively do their job. | ||
| When Jared was effectively doing it for them by back-channeling the boss and everybody else. | ||
| Now, here's what's bothering me about the book. | ||
| The one, I think, truthful account of what Jared did that he boasts about in his book has to do with something that I've written about Extensively, and it's in the Taking Back Trump's America book, which is the China negotiations, the Communist China negotiations. | ||
| Jared truthfully admits that the two most important people shaping him to then shape the Communist Chinese negotiations were | ||
| This guy named Steve Schwarzman, who's a Wall Street hedge fund guy, and Henry Kissinger, who was the Secretary of State for Richard Nixon, who engineered the opening of communist China to the world back in the 70s. | ||
| And it had basically set us on a collision course that we are on today. | ||
| With the Imperial Tower of Communist China. | ||
| So where's the Hunter Biden comparison to Jared Kushner come in? | ||
| Certainly, Jared, I would never accuse Jared of doing crack cocaine or hookers, right? | ||
| Never did that. | ||
| He's, you know, he's above board on all of that. | ||
| But the real obscenity in the laptop from hell story that Miranda Devine is going to tell us about Later on in the show really is about the unregistered foreign lobbyist activities that Hunter Biden did, not just in Ukraine with the corrupt bereavement, but a lot in communist China. | ||
| I mean, we know. | ||
| For a fact that Hunter went over there on Air Force Two with his dad, and while he was over there, he cut deals and would come back with a billion dollars or more to be used, to be clear here, to be clear here, what was that money to be used for besides buying more crack? | ||
| It was to buy American manufacturing companies For the Chinese and effectively export them back to China. | ||
| So, in my judgment, the real sin of Hunter Biden, the sin that he should be hauled up on the carpet for on Capitol Hill when the Republicans take control of Congress in January, is the selling out of America to the Communist Chinese for Monetary gain leveraging his father's connections. | ||
| That's the Hunter Biden story. | ||
| Let me say it one more time. | ||
| What Hunter Biden did as the son of the president was go to China, use his connections with his father to raise a bunch of money, I was the Director of Trade and Manufacturing Policy in the Trump White House. | ||
| Robert Lighthizer was the United States Trade Representative. | ||
| enrich the Chinese so that they could build a military. | ||
| OK? | ||
| All right, now what's the analogy here? | ||
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Jared Kushner. | |
| I was the director of trade manufacturing policy in the Trump White House. | ||
| Robert Lighthizer was the United States trade representative. | ||
| Both Bob and I were, as Steve Bannon was in the White House, the China hawk wing. | ||
| Wilbur Ross sometimes joined us. | ||
| He leaned more towards us than he did to the other wing, which was Gary Cohn, later Larry Kudlow, Steve Mnuchin, and Jared Kushner. | ||
| Okay, so we had these two wings. | ||
| And our mission was to fulfill the mission of President Trump. | ||
| We never thought we were the ones that got elected. | ||
| We just wanted to fulfill Donald Trump's And Donald Trump's vision was to crack down on China's economic aggression using tariffs to do so and gradually wean America from Maiden China. | ||
| And wean America from Maiden China because we as a country and the President did not want to be in the business of building up the Chinese economy and military so that they could kill us. | ||
| Which is what their military wants to do. | ||
| Let's be clear about that. | ||
| So, Lighthizer and I were constantly trying to implement that China hawk vision that President Trump had, but we were constantly bumping up against Kushner and Mnuchin, Gary Cohn, and then Kudlow in this whole thing. | ||
| Now, Kushner's betrayal, this is the treasonous part of it. | ||
| Kushner became a puppet. | ||
| Of this guy named Steve Schwarzman. | ||
| There were some other Wall Streeters involved. | ||
| John Thornton, who effectively owns the Brookings Institute now on behalf of China. | ||
| Larry Fink. | ||
| These guys, every single one of them, okay, gets richer when this country's softer on China, okay? | ||
| The more jobs we send to China, the more American capital from our pension funds we send to China, the more Steve Schwarzman, John Thornton, and Larry Fink get rich. | ||
| These were the guys Jared Kushner relied on to scuttle what essentially was the Lighthizer-Trump-Navarro deal with the Chinese. | ||
| And much has been written about this. | ||
| But I can tell you that at one point, because of President Trump's strong leadership, we had a really great trade agreement ready for the Chinese to sign that they had agreed to sign. | ||
| They had agreed to sign. | ||
| And they backed away from it. | ||
| And at that point, what President Trump should have done, and wanted to do, and should have done and wanted to do, was just Put the rest of the tariffs on. | ||
| Just be done with it. | ||
| Mnuchin, Cohn, Kudlow, and most of all, Kushner, would constantly backchannel Schwarzman, and not only did they backchannel guys like Schwarzman, They spoke directly to the communist Chinese negotiators without telling who? | ||
| Lighthizer, the top trade representative. | ||
| And the practical result of Jared Kushner's treason was this so-called skinny deal, which was signed in January of 2020. | ||
| Privately, I warned the president and everybody else who sat in the Oval Office That that deal was not only a bad deal for the American people, the Chinese weren't even going to abide by that anyway. | ||
| And of course they didn't, right? | ||
| But you got Jared boasting in his new book that this thing was a quote, massive, massive victory, massive victory, massive victory for the American people when in fact, The only thing that Kushner did was scuttle what would have been a tough deal. | ||
| And what is he doing now? | ||
| See, this is the thing. | ||
| This is the thing. | ||
| Him and Mnuchin are out there collecting billions of dollars. | ||
| Billions of dollars from the Saudis, from the Chinese, whoever. | ||
| It's like foreign capital. | ||
| They're going out. | ||
| All the networks that Kushner built up in the White House. | ||
| It's the old digital Rolodex. | ||
| He just calls them up, dials for dollars, and now he's going on to his next venture and leaving all of us to clean up Jared Kushner's mess. | ||
| That's treason. | ||
| Jared Kushner is the Hunter Biden of the Trump administration. | ||
| Navarro in for Bannon. | ||
| We'll be right back. | ||
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We're going to be talking about Zuckerberg and the FBI. | |
| Like, there was a lot of attention on Twitter during the election because of the Hunter Biden laptop story, the New York Post. | ||
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Yeah, we had that too. | |
| Yeah, so you guys censored that as well? | ||
| So we took a different path than Twitter. | ||
| I mean, basically the background here is the FBI, I think, basically came to us, some folks on our team, and was like, hey, just so you know, you should be on high alert. | ||
| We thought that there was a lot of Russian propaganda in the 2016 election. | ||
| We have it on notice that basically there's about to be some kind of dump of Uh, that's similar to that. | ||
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So just be vigilant. | |
| So our protocol is different from Twitter's. | ||
| What Twitter did is they said, you can't share this at all. | ||
| Um, we didn't do that. | ||
| What we do is we have, um, if something is reported to us as potentially, um, misinformation, important misinformation, we, we also have this third party fact checking program because we don't want to be deciding what's true and false. | ||
| And for the, I think it was. | ||
| Five or seven days when it was basically being determined whether it was false, the distribution on Facebook was decreased, but people were still allowed to share it. | ||
| So you could still share it, you could still consume it. | ||
| So when you say the distribution has decreased, how does that work? | ||
| Basically, the ranking in News Feed was a little bit less. | ||
| So fewer people saw it than would have otherwise. | ||
| By what percentage? | ||
| I don't know off the top of my head, but it's meaningful. | ||
| But basically, a lot of people are still able to share it. | ||
| We got a lot of complaints that that was the case. | ||
| You know, obviously this is a hyper-political issue, so depending on what side of the political spectrum you either think we didn't censor it enough or censored it way too much, but we weren't sort of as black and white about it as Twitter. | ||
| We just kind of thought, hey, look, if the FBI, which I still view as a legitimate institution in this country, it's like very professional law enforcement, they come to us and tell us that we need to be on guard about something, then I want to take that seriously. | ||
| Did they specifically say you need to be on guard about that story? | ||
| No, I don't remember if it was that specifically, but it basically fit the pattern. | ||
| They put Peter Navarro in leg irons for simply doing his constitutional duty. | ||
| Now they want to put Peter in prison for standing up for Donald Trump. | ||
| Please go to Amazon right now and order Taking Back Trump's America to help fund Peter's legal defense. | ||
| Taking Back Trump's America provides a critical MAGA blueprint to put Trump back in the White House in 2024. | ||
| Buy Taking Back Trump's America on Amazon today. | ||
| If they can put Peter Navarro in prison, they can come for all of us. | ||
| Yeah. | ||
| I wonder if Zuckerberg was in leg irons when he was doing that thing with Rogan. | ||
| I gotta hand it to Denver, man. | ||
| Digging out that clip of Rogan and Zuckerberg. | ||
| From what would have been January of 2021, right after the election, we discovered that the FBI suppressed information about Hunter Biden's laptop, which basically would have swung the election to Trump if that had been going on. | ||
| Oh, wait, wait, wait, wait. | ||
| What month is it? | ||
| August 2022. | ||
| Hey, Mark! | ||
| What took you so long, you twit? | ||
| Huh? | ||
| No, you're not the twit. | ||
| That's Dorsey. | ||
| Look, Belichick says you are what your record says you are, right? | ||
| And let's go over the record of the FBI. | ||
| Let's start with this. | ||
| This is an incredible revelation. | ||
| We're going to be talking to Miranda Devine at the top of the next hour. | ||
| About this whole situation. | ||
| But drill down on that just for a minute. | ||
| The FBI, which had Hunter Biden's laptop for probably over a year before they told Zuckerberg it was Russian disinformation, knew it wasn't Russian disinformation, yet went to Zuckerberg and said, nah, don't put that up there. | ||
| All right, so So there's that data point. | ||
| And then we go back in time, yeah, to 2016. | ||
| Even before Trump gets elected, the intelligence operatives in the U.S. | ||
| government were beginning to try to weave this Russia hoax web | ||
| Around Trump, and we know for a fact, this is indisputable fact, that it was FBI top leadership, Page, Strzok, notably, Comey, others, who concocted this FISA warrant scheme in order to build and lend credibility to this Russia hoax. | ||
| And what was it? | ||
| I mean, look, it was designed to be a coup d'etat of Donald Trump before he even got sworn in or shortly after he got sworn in because they were relentless about this. | ||
| So you go this. | ||
| OK, so at the at the beginning of the administration, the FBI tries to prevent him from taking power. | ||
| At the end of the Trump administration, Just that single act, that single act, let's call it treason for what it is, because it was trying to overthrow a sitting president. | ||
| Oh, wait, let's call it an insurrection. | ||
| That's what it is. | ||
| Aren't insurrectionists the ones who use weapons? | ||
| They're armed individuals who try to overthrow the American government? | ||
| Isn't that what the FBI is now? | ||
| Armed insurrectionists, okay, because those armed agents went to Zuckerberg and, you know, the funniest part of that whole thing was when Zuckerberg defends the FBI. | ||
| He calls them what? | ||
| What do you call them? | ||
| Oh, they're a professional organization. | ||
| No, they're not. | ||
| No, they're not. | ||
| They're insurrectionists, if you believe Zuckerberg. | ||
| I mean, Mark, show us the friggin' receipts, dude. | ||
| I want to see all of the email correspondence. | ||
| I want to know who the agents were who came to you. | ||
| Who are these people? | ||
| These people cannot remain nameless. | ||
| I didn't look like put that on the checklist for January of 2023 when the Republicans start issuing their own subpoenas to people calling people up to Capitol Hill to hold hold them account for all manner of stuff. | ||
| Let's put this one Let's put this one on the list. | ||
| So you got the Russia hoax, now you got the Zuck hoax. | ||
| Oh, short digression. | ||
| Hey Joe Rogan, thanks for asking Zuckerberg deep questions about why he spent almost a billion dollars helping people steal the election from Donald Trump. | ||
| Okay, so this was a twofer for Zuck Bucks, right? | ||
| He willingly cooperated with the FBI in suppressing information about the Hunter Biden laptop. | ||
| Oh, Zuck, here's my impression of Zuck. | ||
| I can't remember how much we suppressed it. | ||
| I'll get back to you on that, Joe. | ||
| But he did that, and at the same time he was doing that. | ||
| What was he doing? | ||
| Zuck bucks, drop boxes, ghost voters, doing all sorts of stuff, okay? | ||
| Quick aside, let me sell Taking Back Trump's America yet again to you. | ||
| Yeah, there's a great chapter in there about the Zuck bucks issue and How unconscionable that guy is at Facebook. | ||
| I'm glad he admitted! | ||
| I mean, this is a big story. | ||
| So, data points. | ||
| So, FBI 2016, FBI now 2020 with the Zuck story. | ||
| Now, in between, what do we got? | ||
| Of course, we got me and leg irons. | ||
| That was like a nice over-the-top arrest with five armed agents. | ||
| We've got Mar-a-Lago. | ||
| See, the big difference between what they did to me and what they did to President Trump and Mar-a-Lago, what's the big difference? | ||
| Well, the ones that came for me only had handguns. | ||
| The ones that went down to Mar-a-Lago, they were packing, okay? | ||
| They had some... I mean, to break into Melania's panty draw, you need to be packing, okay? | ||
| You know what I'm saying here? | ||
| You got the Roger Stone circus. | ||
| Where the FBI used frogmen. | ||
| Boy, I wonder how much that cost. | ||
| I think we know. | ||
| It was over a million dollars for that raid. | ||
| And they should have charged CNN, because CNN probably made over a million dollars by being the only ones there. | ||
| And why didn't MSNBC sue CNN and the FBI for letting CNN get the scoop on them? | ||
| So that we got, and then we got Paul Manafort. | ||
| In solitary confinement. | ||
| George Papadopoulos in prison. | ||
| You know, my biggest thing with the FBI in terms of the impact on the Trump administration was the thing that really bothered me about the whole thing about what the FBI did was how they suppressed all manner of information Uh, about what they did to Mike Flynn. | ||
| I mean, Mike Flynn, to me, is a hero. | ||
| Okay? | ||
| General Mike Flynn. | ||
| I met him during the transition in 2016. | ||
| We had a plan to take down Communist China as China hawks. | ||
| And what they did to Mike Flynn was blackmail him by threatening prison for his son. | ||
| Mike did the honorable thing and resigned and pled whatever. | ||
| And when they took Mike Flynn out, that set in motion a whole chain of events. | ||
| A whole chain of events where it started with HR McMaster, a globalist replacing Mike as the National Security Advisor, had to fight him on the China stuff, and then down the road we got John Bolton, and then it didn't settle in the National Security Council until Robert O'Brien came into the picture, and thank God for Robert O'Brien. | ||
| All right. | ||
| When we come back, we're going to shift away from the FBI and move straight to the economy. | ||
| We've got Jay Powell and Jackson Hole, and we've got Steve Cortez in the War Room. | ||
| I'm Peter Navarro in with Stephen K. Bannon. | ||
| We'll be right back. | ||
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Thank you. | |
| The more inflation rose, the more people came to expect it to remain high, and they built that belief into wage and price decisions. | ||
| As former Chairman Paul Volcker put it at the height of the Great Inflation in 1979, inflation feeds in part on itself, so part of the job of returning to a more stable and more productive economy must be to break the grip of inflationary expectations. | ||
| One useful insight into how actual inflation may affect expectations about its future path is based in the concept of rational inattention. | ||
| When inflation is persistently high, households and businesses must pay close attention and incorporate inflation into their economic decisions. | ||
| When inflation is low and stable, they are freer to focus their attention elsewhere. | ||
| Jay Powell. | ||
| I'm writing this stuff down. | ||
| A new term for our lexicon. | ||
| Rational inattention. | ||
| I never got that one in the history books. | ||
| But I'll tell you what caught my eye with this. | ||
| And we're going to talk to the great Steve Cortez momentarily. | ||
| It's like when Powell gets on to begin to speak, like, just a few minutes in, the markets kind of just drop down, right? | ||
| And I think what probably caught people's attention who know about the history of stagflation was dropping the word Volcker, okay? | ||
| Paul Volcker was the Fed chair in Reagan's day who had the cojones, Uh, to dramatically raise interest rates to break the back of what was then a persistent wage price spiral and high inflationary expectations. | ||
| The whole conceit of the Reagan-Volcker policy to end stagflation was kind of a shock and awe at the Fed to quite literally induce a prolonged and sharp painful recession that thereby signal to businesses and consumers that hey inflation's over and it worked beautifully okay now we're not in that | ||
| world now but the idea that Jay Powell who isn't trained in economics and he's a friggin idiot who's only there because Steve Mnuchin lobbied President Trump to put him there The idea that if Jay Powell is going to channel the great Paul Volcker, that signals to the intelligentsia on Wall Street | ||
| Hey, the Fed's probably going to be aggressive about raising interest rates. | ||
| So with that little historical rant, let's bring in the great Steve Cortez and his bouquet there. | ||
| Is it your birthday there, Steve? | ||
| Anniversary? | ||
| What is that, Bob? | ||
| Yeah, I just turned 30. | ||
| Yes, happy birthday to me. | ||
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Is that like a Zoom background or is that real, man? | |
| That's real. | ||
| Listen, you know, hey, I try to tell you, I'm a TV guy, so I try to pay attention to the shots wherever I am. | ||
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What are they, boutonniere or something on your lapel? | |
| That's right. | ||
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Grab one of those flowers, pop it in there for the next segment. | |
| If you're not smart, you got to try to look decent, okay? | ||
| I've always operated on that principle. | ||
| You got the Kudlow handkerchief, man. | ||
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You're going like Wall Street on me, dude. | |
| I am Wall Street, not philosophically Wall Street, but I spent two and a half decades, I spent 25 years. | ||
| Rio Grande Valley in my heart, brother. | ||
| All right, so the economy's going to hell in a handbasket. | ||
| I've called a short on the market long ago and say the Dow's going to $25,000 before $40,000. | ||
| Where are we at now? | ||
| What's your takeaway from Jay Powell and Jackson Hole? | ||
| And what do you want to tell the War Room folks today? | ||
| Well, you know, my main message is even Powell, who is a buffoon, even Powell is starting to get it. | ||
| He's starting to realize the crisis that is occurring right now in our country. | ||
| And when one out of six Americans, 20 million households, literally can't pay their utility bill, the most basic bill any person faces, any adult in their life, when one out of six households can't pay the utility bill, We have an all-out crisis in this country. | ||
| It's not debatable whether or not we're in a recession. | ||
| It's just the extent of that recession and whether or not that recession tips into something even worse, into depression territory. | ||
| So, Jerome Powell is starting to get that message. | ||
| I think this was a welcome speech today, albeit Far too late. | ||
| Financial markets don't like it. | ||
| Right now, the Dow is down 400 points. | ||
| The Nasdaq's down 1.75%. | ||
| Financial markets don't like it, though, for good reason. | ||
| Because, you know, and I mentioned this yesterday when I was on with Admiral Bannon. | ||
| Right now, the Fed, and nobody should feel sorry for Jerome Powell because the Fed put itself in this corner, but the Fed is in a corner right now because we have absolutely runaway inflation, and both choices for the Fed are bad. | ||
| And what I mean by that is if the Fed That is the reality right now, if they try to protect capital. | ||
| then it's going to absolutely punish tens of millions of working class Americans who are barely hanging on. That is the reality right now if they try to protect capital. But if they try to protect those masses, the millions of Americans who need help by squashing inflation, by raising interest rates, they're going to smash capital, right? | ||
| And so there's no good choice here in either direction. | ||
| What Powell told us today is he realizes the severity of the crisis. | ||
| I think you're exactly right, Dr. Navarro, for him to directly quote Volcker, not just channel his thinking, but to directly quote Volcker, who told us that inflation feeds on itself, that it can become a self fulfilling problem and a really downward cycle for the country in so many ways. | ||
| For him to quote Volcker is extremely significant. | ||
| He also told us, let me give you another quote that I think was very important from Powell He said, history cautions against prematurely loosening policy. | ||
| History cautions against prematurely loosening policy. | ||
| So again, all of this tells me that he is starting to get it. | ||
| Now, it's way too late, okay, but better late than never. | ||
| And by the way, speaking of late, I think this is an important point because this is a big central bank conference. | ||
| It's not just about Jerome Powell. | ||
| Basically, all the United States central bankers are there, as well as a lot of central bankers from around the world. | ||
| And I want to put this quote out there because I think it deserves attention and it deserves rebuke. | ||
| The chairman or the president of the Atlanta Fed, Bostick, he also spoke this morning. | ||
| And this is a quote from Bostick. | ||
| He said, quote, levels of inflation now were unimaginable 18 months ago. | ||
| Unimaginable 18 months ago. | ||
| Well, Peter, they were not unimaginable to you, nor to me, nor to anyone who has any degree of sophistication or expertise who was willing to take an honest look at the data and the evidence and where policy was taking us. | ||
| Quick digression here. | ||
| Let us note for the record, Steve, that Georgia is not only the cesspool Of electoral presidential politics. | ||
| It is now the cesspool of economic forecasting. | ||
| Continue, sir. | ||
| Yes. | ||
| Well, I mean, but just... | ||
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He really deserves this public review. | |
| I mean, unimaginable 18 months ago. | ||
| Unimaginable, yeah. | ||
| First of all, you are paid to imagine. | ||
| How long ago was it on The War Room? | ||
| How many months ago? | ||
| Do you remember, Steve, the first time? | ||
| I mean, I was talking about stagflation. | ||
| I mean, I wrote a memo when I was in the White House in May of 2020 warning that things were setting up for a stagflationary scenario because of these supply chain issues. | ||
| The dire, dire situation with small businesses going away, the problems with people being able to pay the rent, the more of this, that, and the other thing. | ||
| Do you remember when you first raised the stagflation issue? | ||
| I believe I used stagflation first in January of 2021, so just over 18 months ago, basically when Biden took office. | ||
| Once it was very clear, the team that he was assembling, and once it was very clear what they were going to institute and inflict upon this country, I joined you. | ||
| in trying to loudly warn people. | ||
| We are going into an era economically that we have not seen since the 1970s. | ||
| And by the way, I now believe, let me go further than that, the 1970s now, that era would actually be a relief at the present. | ||
| What I mean is the dangers are now far greater than they were in the 1970s. | ||
| So at that point, I was warning about a Carter style malaise. | ||
| I think now I'm warning about far, far worse than that. | ||
| And why though? | ||
| Not because of my opinion, because of the data. | ||
| Yeah, the other day in the war room, I was talking with Steve about how Larry Summers, who at one point was the dumbest smart guy I had ever met until I met Steve Mnuchin. | ||
| But Summers came out with a paper that basically said that we've got to hit 5% unemployment. | ||
| For a sustained period of time, which implies a significant slow rate of growth or recession. | ||
| We've got to hit that for a sustained point of time in order to ring inflation out. | ||
| So, so, and that implied in turn. | ||
| That the black unemployment rate would probably hit something like 12% for a sustained point in time. | ||
| Here's my question. | ||
| It's like, when Powell gets up there and says, we got to maintain high interest rates, he never says that's going to mean we're going to have slow growth or a recession, right? | ||
| He just says we're going to have high interest rates, whereas Summers at least Acknowledges that, hey, the Fed's going to raise rates. | ||
| We're going to we're going to have this. | ||
| Does Jay Powell understand that he's inducing a recession? | ||
| Did he ever admit that? | ||
| No, he won't use the R word, right? | ||
| You know, the scarlet letter R, believe me. | ||
| But he's starting to get there. | ||
| Again, far too late, far too little, far too late. | ||
| I'm not remotely praising him for not acknowledging what is obvious to every single American, people who have never studied economics but have paid a bill, right? | ||
| It's painfully obvious to them. | ||
| But here's, I want to give you, you bring up a great point, and I do want to give you a quote for him because I think he's taking the smallest of baby steps Towards starting to admit that reigning in this inflation is going to be extremely painful for the country. | ||
| Now, we have to do it. | ||
| We absolutely have to do it because it's more painful to do nothing or to simply try to reward capital because this country simply cannot handle electricity prices. | ||
| Hang on, let me challenge you a bit on that, Cortez. | ||
| Well, let me give you this quote first. | ||
| Hang on, just give me a second here. | ||
| I'll hand it right back to you. | ||
| We got plenty of time. | ||
| See, the thing about it is we have to recognize That in a stagflationary environment, the Feds are one trick pony. | ||
| It can either give us recession, or it can give us growth, depending on where it sets interest rates. | ||
| And unless you have other parts of government doing what they need to do to drive growth, then it's a fruitless venture. | ||
| And all that we will see is the Fed doing kind of the yo-yo like it did during the 70s. | ||
| I mean, if you remember what Arthur Burns did, he was up, he was down. | ||
| It's crazy. | ||
| So I guess the question to you is, like, really? | ||
| When you say the Fed's got to do what it's got to do? | ||
| I mean, don't you have to be... Tell me what else the rest of the government has to be doing to make that policy effective. | ||
| Because that's not going to be effective, Steve. | ||
| It's just going to give us misery in one form or the other. | ||
| If he's weak, it gives us inflation. | ||
| If he's strong, it gives us recession. | ||
| So when you say the Fed's got to do what it's got to do, fill in the rest of the blank, sir. | ||
| And we're going to take you into the next break, so you'll have plenty of time to wax eloquent. | ||
| Yeah, of course. | ||
| No, listen, Peter, incredibly important point. | ||
| What the Fed can't do are things like secure the border. | ||
| Now, you might say, wait a second, how does that relate to inflation? | ||
| Well, here's why. | ||
| Because real wages have gone down for 16 straight months under Joe Biden. | ||
| Americans are working harder to get poorer every single month of his presidency. | ||
| If we were to restrain the border, if we were to get control of the border and disallow these millions of new workers who are competing unjustly and illegally in the labor market against American citizens, real wages would start to rise dramatically. | ||
| So that is an example of a policy that is very attainable, very quickly if we have the resolve, that would greatly benefit Americans who are suffering from inflation. | ||
| Now, again, the Fed has no control over the border, right? | ||
| That's an issue for Congress and the executive branch. | ||
| But my point is, those are the kinds of reforms that can lead to growth, even when we're trying to fight this insane inflation that is bedeviling the country because of Biden. | ||
| All right, Brother Cortez, we'll be back after the break. | ||
| Do me a favor. | ||
| Go poke out some more of Powell's stuff, see if there's anything else of interest in there. | ||
| We'll resume this conversation, but I also want to talk to you a little bit about some of the political issues. | ||
| Maybe give us an update on the J.D. | ||
|
unidentified
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Vance race and whatever else ones are involved in it. | |
| I'm Peter Kane to borrow in for the great Stephen K. Bannon. | ||
| This is a temporary assignment, of course. | ||
|
unidentified
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The Admiral will be back with you soon. | |
| Out! | ||
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| All right, now we're going to quickly get back to Steve Cortez on the economy. | ||
| I'm going to set one of his charts up real quick. | ||
| The whole Wall Street shuffle, when you go as a newbie, naive person, to give your money for your 401k or whatever, they say, well, put about half of it in stocks, half of it in bonds, and that's what they call asset allocation, right? | ||
| The older you get, the more bonds you want, usually, okay? | ||
| The idea is, the reason you do that, is there's a natural hedging thing going on. | ||
| Stock and bond prices, Usually go in opposite directions, so if the stock market is going down, you're going to make money on bonds, so that asset allocation works. | ||
| In a stagflationary environment, however, where you've got simultaneous inflation, Now, Steve, are we in a stagflationary environment? | ||
| are going to fall because of the recession and bond prices are going to fall because as inflation rises bond prices go down because they're inversely related. | ||
| Now Steve are we in a stagflationary environment? What does this instrument from BlackRock tell us? Yes we are 100% in in a stagflationary environment. | ||
| Again, that's not my opinion. | ||
| That's what market prices tell us. | ||
| And as I often preach, price is truth when it comes to the economy. | ||
| So there's actually an ETF from BlackRock, a firm that I'm not a fan of, But they have some very successful ETFs out there, meaning an exchange-traded fund. | ||
| So in one ticker, you get a group of companies, or in this case, a group of companies and assets together. | ||
| And that ticker is AOR. | ||
| And look, I'm not advocating for or against this ETF. | ||
| My point here in showing AOR, which is chart number two, folks, if we can please pull that up, is that there is nowhere to hide right. | ||
| Okay, so this is AOR. | ||
| For this year, for the folks who are watching the telecast, you can see that the trend is demonstrably... To be clear, Steve. | ||
| Steve, to be clear, what's the asset allocation? | ||
| How much stocks, how much bonds? | ||
|
unidentified
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Oh, I'm sorry. | |
| Yes. | ||
| Good point. | ||
|
unidentified
|
So this is a 60-40... Burying the lead, brother. | |
| So it goes for 60% stocks, 40% bond. | ||
| And again, over time, just as you discussed, over time, the rationale there being that when you're having problems in stocks, your bonds are doing well, you're collecting interest rates on your bond side, you're hopefully collecting yields on the stock side, over time, a 60-40 blend. | ||
| And Wall Street is right for the most part that over time, for most investors, This is a reasonable way to invest if you're not terribly risk tolerant. | ||
| So the 60-40 blend is sort of the default position of investing for regular individuals in the markets right now. | ||
| But if we look at the 60-40 blend as represented by ticker AOR, What we see right now is that year-to-date, there is nowhere to hide. | ||
| In other words, you are getting pummeled in stocks, and at the exact same time, you are getting pummeled in bonds. | ||
| And by the way, you just heard what the folks on CNBC, Fox Business, never tell you about. | ||
| You never hear this stuff! | ||
| This is the best place for your financial news, just saying. | ||
| All right, Steve, we've got just a minute and a half left. | ||
| Tell us about two races that you want people to make sure we win. | ||
| John Griffiths in Michigan and JD Vance in Ohio. | ||
| Go! | ||
| And very related to this inflation issue. | ||
| So there's two candidates that I'm helping that I want to specifically advocate for because they're part of the solution to this inflation quagmire that we're in. | ||
| One is J.D. | ||
| Vance, who's running for Senate, of course, in Ohio, the Republican nominee. | ||
| He's running against Tim Ryan, who is a lifelong politician and incumbent congressman in the House of Representatives, somebody who claims to be a populist when he's back in Ohio, but in Washington acts as a sewer creature and has voted for all of the inflationary madness that Biden has put in front of him. | ||
| According to FiveThirtyEight, which is a left-leaning website, he votes with Biden 100% of the time. | ||
| So we have to put J.D. | ||
| Vance in the Senate. | ||
| On the House side, John Gibbs is an incredibly dynamic and persuasive young man. | ||
| He already knocked off Peter Meyer, who was an impeachment rogue, a rhino Republican who needed to go and has been dispatched by John Gibbs. | ||
| But he's in a tough race in West Michigan, Michigan 3. | ||
| We've got to get him over the top in that tough House race. | ||
| He will prevail, I believe. | ||
| But it won't be an easy win. | ||
| Trump has endorsed both Gibbs and Vance, right? | ||
| These are Trump-endorsed candidates. | ||
| All right, that is the great Steve Cortez. | ||
| I wish you were the Fed Chair, sir, maybe Treasury Secretary, or in a new Trump administration, sir. | ||
| You should be the National Economic Council Director. | ||
| Cortez, we'll see you again. | ||
| Navarro, coming up with the great Miranda Devine at the top of the hour to talk about the FBI and the Hunter Biden laptop from hell. | ||
| Navarro in for Stephen K. Bannon, and we'll be right back with A Hot Another Hour. |
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