Sept. 13, 2022 - Bannon's War Room
48:45
Participants
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| Speaker | Time | Text |
|---|---|---|
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unidentified
|
What do I see for 2022? | |
| What's my outlook? | ||
| Right, first of all, to me, we have the strongest economy perhaps I have ever seen. | ||
| So, Jim, after a series of pretty strong days, 8 to 1, 9 to 1, we do expect breadth to be pretty negative at the open, and there it is. | ||
| Oh, certainly. | ||
| I mean, look, if you look at what the S&P is, we're going to repeal 50% of the rally. | ||
| That tends to be where you should be buying if you felt like you missed the rally. | ||
| Stunning inflation report. | ||
| John, is that the right word? | ||
| I think you can call it that. | ||
| It's the upside surprise, Tom. | ||
| Stunning inflation report. | ||
| Futures turn around. | ||
| I'm doing the math in my head, John. | ||
| Help me out here. | ||
|
unidentified
|
2.5% flip-flop. | |
| in what we see on S&P futures. And some on the NASDAQ 100. | ||
| And some. We're down 2.4%. | ||
| This disrupts the idea that this Fed can back away anytime soon, Tom. It's a bit of a reality check. Well, I'll go with the disruption, just to say that we've got to rip up the script and come up with a whole new dialogue. What we saw today with these numbers, this kind of hot inflation numbers, is exactly why they needed to pass things like the Inflation Reduction | ||
| Like, it is the way for them to say, we are, this is proof positive that our theory of the case is correct, that we said we want to make sure that we find ways to, if we can't get, completely get rid of inflation, figure out a way to make things, prices lower for the American people, and more importantly, lower for middle-class families. | ||
| Yes, the August numbers for the Consumer Price Index, headline number expected to be down, is up one-tenth instead of down one-tenth. | ||
| And do remember, the high watermark there was in June, when it was the highest level since 2005, when it was up 1.3%. | ||
| Up only one-tenth, of course, is the lowest. | ||
| Well, since last month, we're unchanged. | ||
| If we strip out the all-important food and energy, and do understand gas was down, what, 26% month over month? | ||
| It's food that we have to pay attention to. | ||
| Up six-tenths of one percent, double the expectation. | ||
| And the high-water mark there is up nine-tenths. | ||
| That was in April, and that went back to 1981, up six-tenths. | ||
| Well, if you look at up seven-tenths in June, that's kind of our comp. | ||
| Now, the year-over-year numbers, expecting up eight percent, up 8.3 on year-over-year, up 8.3. | ||
| High-water mark there was, of course, 9.1. | ||
| That goes back to 1981. | ||
| 8.3 equals April and it is the lowest level since February one is 7.9 And if we strip out the all-important food and energy on a year-over-year perspective, it's also hotter than expected up 6.3% We're expecting up 5.9 the high watermark there up 6.5. | ||
| That was in March. | ||
| That was the highest since 82 and In the land of the blind, the one-eyed man is king. | ||
| now is the highest since March of when it was the highest since 82. We've had four months in a row where it was moderating a bit. We'll call an end to that. Now as we look at interest rates we can clearly see that there's a lot of two-way action going on here. Okay, in the land of the blind the one-eyed man is king. Rick Santelli is the one-eyed man over CNBC because the rest of them are totally blind. But we're two-eyed men and women and I've | ||
| got Steve Cortez and Monica was a strategic communications head at the Treasury Department under Donald Trump. | ||
| I want to start. | ||
| It's Tuesday, 13 September, the Year of Our Lord 2022. | ||
| I'm so proud of the War Room Economics and Capital Markets team led by Steve Cortez. | ||
| Brother, you got this one right. | ||
| Credit Suisse came out last night and said, you know, with the collapse in inflation that we're going to see tomorrow, it's going to have a massive surge in buying equities. | ||
| There's blood in the streets, brother. | ||
| And the blood is just not in stock. | ||
| Steve Cortez, give me a headline before I go to Monica. | ||
| Yeah, listen, the only thing that's collapsing is the prosperity of regular Americans, particularly middle and lower income Americans who have been put into an economic vice because we have something in this country, a phenomenon that we have not seen since the 1970s, soaring inflation with growth crashing into a ditch. | ||
| Except, it's even worse than the 1970s because of various factors, and we'll get into some of them, show some of the charts. | ||
| This is a terrible report, but I want the folks out there to not be gloomy about it. | ||
| I want it instead to encourage us, to motivate us, To fix this mess, we can do so in November. | ||
| By the way, we absolutely can do it. | ||
| I'm gonna get Monica in here for a second, but I do have to highlight one thing. | ||
| Magnificent cold open, a work of art, because we start with Jim Cramer with the pom-poms out on January 1st, saying it's the greatest economy he's ever seen, right? | ||
| And then, Steve Cortez. | ||
| Jim Cramer has the chutzpah at the market open with the market down 600 points. | ||
| He has the chutzpah to say, wait till 11 o'clock after this goes. | ||
| He's pitching buying the dip on a day when they've got the inflation number totally wrong. | ||
| It's awful news. | ||
| And Jim Cramer's pitching buy the dip. | ||
| Is that chutzpah? | ||
| Yeah. | ||
| Well, listen, it's stupidity. | ||
| It's chutzpah. | ||
| It's all of it put together. | ||
| Turn off the corporate media because they prioritize narrative, unfortunately, over economic reality. | ||
| But again, the American people can't be spun by these folks, by these loudmouths, basically, on air who, again, prefer narrative versus economic reality. | ||
| By the way, one thing that I'd like to point out, too, Steve, regarding this number is that, particularly on the core inflation, it was double expectations, double the rate of expectations month over month. | ||
| That's a fascinating segment of this, you know, in and of itself. | ||
| There's an army of PhDs who are very well paid, Steve, to forecast exactly these kinds of numbers for the massive hedge funds, for the central banks of the world, and they can't get it right. | ||
| Why? | ||
| Because, and they're very smart people, okay? | ||
| I'm not even necessarily casting judgment on them. | ||
| The reason they can't get it right is because we are in absolutely unprecedented times. | ||
| I mean, there's literally either no precedent or you've got to go back 50 years for some sort of rough analog to what's happening right now. | ||
| What Joe Biden has wrought in this last year and a half, It is absolutely historic. | ||
| It is crushing the prosperity of America and today's number is further proof positive. | ||
| Our theory of the case has been, forget recession and stagflation, we're deep into that and it's almost a depression for certain Americans, but we're one false move away from going over the cliff and having a depression of what should take 10 years to unwind. | ||
| So I want to bring in Monica. | ||
| Monica, I had to put the Politico commentator or the political writer in the, I think on Morning Joe in the middle of that. | ||
| He's saying, hey, this number is great because now Biden proves it proves this theory of the case. | ||
| He's got to play. He's got to pass the inflation reduction at more spending, more spending up front to reduce inflation. You had a tweet out. Is this madness? Have you ever seen anything like this in your life, Monica Crowley? Well, first of all, good morning, Steve and Steve Crowley. | ||
| Great to be with you this morning. | ||
| And thank you for highlighting that tweet, Steve. | ||
| As soon as I posted it, you texted me and said, can you jump on? | ||
| That sentiment right there, that last line, I've been talking about this literally from day one of the Biden administration. | ||
| All of the spin that you hear from them and from the press, they're just full of crap all of the time. | ||
| You know, there's spin and then there's outright lying. | ||
| They are outright lying to the American people about the state of the economy. | ||
| The bad news for them is that the American people are living this economy on the ground every day. | ||
| Every time they go to fill up their tank, every time they go into the grocery store. | ||
| The other day I got a menu from a new restaurant out of Long Island, New York. | ||
| They wanted 29 bucks for a BLT. | ||
| I obviously did not order the BLT. | ||
| I'm not spending 30 bucks on a BLT. | ||
| But the American people, every time they go to feed their family or drive somewhere, This catastrophic Biden economy is in their face. | ||
| That last line in that tweet, Steve, which I think is the thing that really caught your attention. | ||
| This is a deliberate takedown of the U.S. | ||
| economy. | ||
| There it is. | ||
| The deliberate implosion of the U.S. | ||
| economy. | ||
| This has been going on from day one. | ||
| You guys talk about this all this time. | ||
| Steve Kortes is excellent on this. | ||
| The laws of economics are hard and fast. | ||
| It's not like you're talking about social welfare policy or wetlands in New Jersey. | ||
| When you're talking about the economy, those laws are hard and fast. | ||
| There is no getting around them. | ||
| The White House expected a better inflation number today, which is why they created this entire event around Biden today to celebrate the passage of the Inflation Reduction Act, where now you've got inflation still coming in hot. | ||
| You talked about core inflation. | ||
| You also talked about consumer prices. | ||
| And I want to raise one other point, Steve and Steve, which is that real wages have been negative for 17 months straight, ever since Joe Biden and the Democrats passed the American Rescue Plan. | ||
| So the American people are suffering, they know it, and it's going to have huge political consequences come November. | ||
| By the way, 17 months in a row, real wages dropped. | ||
| Inflation on fire, particularly core inflation, as Steve says, that gets to the heart of it. | ||
| Interest rates are going to pop it again next week. | ||
| Interest rate going to see your credit card, your cost of living is going to go up. | ||
| Plus, Reuters, they buried it. | ||
| They just announced the greatest drop in net worth for the American people in the history of the country. | ||
| What, $6.1 trillion in the second quarter? | ||
| And that didn't even mark real estate to market. | ||
| They're hitting your balance sheet. | ||
| They're hitting your net worth and your income. | ||
| Here's the point that Cortez makes, and Monica, you're an expert in this because you live in the heart of the beach, New York City. | ||
| His point is that the corporate business media is all narrative and really don't focus on the numbers. | ||
| That's why today, people have to understand. | ||
| We've been watching this. | ||
| They've been playing up this thing today. | ||
| It's going to be a big drop in inflation. | ||
| Biden's on track. | ||
| This is going to be the propellant that gets him to hold the House and pick up a couple of seats in the Senate. | ||
| This is going to be their big moment. | ||
| And guess what? | ||
| Reality punched them right in the mouth. | ||
| But why is the media, business media, The Financial Times, the New York Times, even some of the Wall Street Journal. | ||
| Why are they pushing narrative instead of the hard reality of what they're arguing about? | ||
| Are we in a recession? | ||
| Two quarters? | ||
| It's all nonsense. | ||
| It's a depression for MAGA, for the deplorables, for working class Americans, Hispanics, African-Americans, everybody, every middle class person and particularly working class are in a depression. | ||
| Monica Crowley. | ||
| Yes, and Steve, that is exactly the point. | ||
| So the Democrats have spent decades and mines a lot of political hay out of appealing to the middle class, working class and the poor, claiming that they are champions of those constituencies and therefore they should all be voting Democratic. | ||
| And for a long time, the Democrats with the unions, they were champions of the blue collar class. | ||
| Well, now we have a complete reversal of that to the point where the Democrats are now champions of the coastal elites, the elite ruling class and nobody else. | ||
| And that's why you're seeing this very dramatic political realignment that really began under Nixon with the Nixon Democrats, went on through Reagan, then went on through the Tea Party and now it's part of the MAGA movement. | ||
| That realignment is a long term realignment, but it's being accelerated because Democrats are point blank lying. | ||
| To these groups of people. | ||
| And it's, are you going to believe me or your lying eyes? | ||
| Well, again, every time they go to buy anything for their families, they're seeing it in their face. | ||
| The business media in this country, with the exception of Fox Business, the business media in this country is largely corrupted. | ||
| Wait, every institution, every organization is now corrupted in this country, shot through with politics. | ||
| They're not telling you the truth, guys, because they're covering for the regime. | ||
| And the point of my tweet today, and I've said this repeatedly, this is a deliberate takedown of the US economy. | ||
| This is Clarendon Piffin. | ||
| This is about overwhelming the system, whether it's the border or the economy with spending and inflation. | ||
| It's about overwhelming the system in order to implode the system so that they can rebuild in their own image, namely a neo-Marxist kind of model. | ||
| So you've got the members of the press covering for it because they're in on it. | ||
| And that's the objective and the goal that they would like to see. | ||
| So you're not getting the truth, whether it's politics, foreign policy or the economy. | ||
| Monica, how do people get to your podcast, which is on fire? | ||
| How do they get to you on social media? | ||
| Oh, thank you, Steve. | ||
| So it's called the Monica Crowley Podcast. | ||
| It's available wherever you get your podcasts, Apple, Google, Spotify, Stitcher. | ||
| I do it three days a week, Monday, Wednesday, Friday. | ||
| It is pure fire. | ||
| Also on social media, on Instagram, I'm at Monica Crowley underscore. | ||
| And truth social and Twitter at Monica Crowley. | ||
| Thank you. | ||
| I know you're busy today. | ||
| Thanks for starting this off and thanks for the tweet, Monica Crowley. | ||
| Cortez, we've got a couple of minutes before we go to break. | ||
| Is Monica Crowley right? | ||
| I mean, you've been into the details. | ||
| We're going to get much more into the numbers, but are these acts of commission or is it just pure incompetence or is it something? | ||
| I mean, how do you actually defend their policy moves that are driving us over the cliff? | ||
| Steve Cortez. | ||
| No, it's more sinister than just incompetence, right? | ||
| You cannot convince me, for example, that Janet Yellen, with a PhD from Yale, the faculty at Harvard, former chair of the Fed, you cannot convince me that she believed it in her core when she said that inflation was transitory again and again. | ||
| They're willing to tell deliberate lies to the American people. | ||
| But as Monica correctly said, price is truth. | ||
| You can't fool people about what they are actually spending. | ||
| And I had to say this too, Steve. | ||
| You know, listen, as an American, this is just terrible news. | ||
| There's nothing to celebrate here quite the opposite. | ||
| This is really terrible news for the country, and a lot of people are in a really bad state economically, and I really empathize for them. | ||
| I want to also tell you, though, as a political operative, as somebody who is involved deeply in these campaigns to try to get the right people elected, In November, the fact that the White House today, Steve, has an Inflation Reduction Act celebration scheduled is really kind of delicious. | ||
| I mean, imagine right now the scurrying around at the White House trying to figure out what they are going to say this afternoon, right? | ||
|
unidentified
|
I mean, there is nothing they can say. | |
| They're so brazen. | ||
| You heard the political guy. | ||
| They're going to sit right there and they're so brazen. | ||
| They're going to gaslight you to your face. | ||
| Cortez, hang on. | ||
| We're going to break down some numbers. | ||
| We're also going... You know, numbers like this put states like Vermont in play. | ||
| We're going to talk to a West Point graduate that's taking it to them up in Vermont. | ||
| The Democrats have been the problem with this. | ||
| The guy running Welch has been part of this for, what, 40 years? | ||
| All next in The War Room. | ||
|
unidentified
|
War Room. | |
| Pandemic. | ||
| the choice. War room 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. | ||
| Welcome back. | ||
| Steve Cortez, let's go back to the beginning. | ||
| Walk me through what happened this morning. | ||
| What was anticipated by the White House? | ||
| What was anticipated by the bought-and-paid-for corporate business media? | ||
| And then, actually, what happened? | ||
| And what impact was this going to have on this audience, sir? | ||
| So the White House in its amen corner in the corporate legacy media, particularly the business media, constantly preach at the American people that we've reached peak inflation, that inflation is set to come down dramatically and that it's somehow no longer an issue. | ||
| Well, the exact opposite today because we got out the data, the hard facts, the The cold water poured all over that ridiculous narrative. | ||
| Headline inflation, CPI, came out at 8.3% on an annualized basis. | ||
| Very near 40-year highs. | ||
| Far worse than expectations. | ||
| And when you dig into the details of the report, the devil was indeed in the details because the details were even worse. | ||
| For example, core inflation, 6.3% on a month-over-month basis, rose twice as much as expected. | ||
| And the reason When you dig into the details and into the sectors of this report, it's because gasoline stopped soaring higher. | ||
| Yes, but guess what? | ||
| Food and rent picked up the pace, and they accelerated in massive ways. | ||
| So, this was a crushingly bad report. | ||
| Even the corporate media, I think, has to admit. | ||
| And by the way, forget for a second about what the media says. | ||
| Forget what I say about it. | ||
| Let's look at what financial markets say. | ||
| Right now, as we speak, the Dow is down over 700 points. | ||
| Much worse than that on the Nasdaq, down 3.5%. | ||
| This is really interesting, Steve. | ||
| The housing sector, housing-related stocks right now down 4% on the day, largely because of interest rates soaring in reaction to this report. | ||
| We'll get more into those details on the bond market shortly, but this is a staggeringly bad report. | ||
| And to also connect the dots to politics, Steve, I've already liked our chances, the America First movement, at electing patriotic populists in November in a wave election. | ||
| Don't believe the suppression messaging and polling out there from corporate media. | ||
| A report like this, Steve, if we message correctly and persuade the American people that we have the answers to fix this, which we do, we're going to see an absolute wave. | ||
| This number could win us the the United States Senate, could win us control of the Senate, could win us a much bigger majority in the House. If we have discipline, if people... | ||
| Laser focus. | ||
| They have to spend time understanding these numbers. | ||
| Number one, last night we went over $31 trillion. | ||
| I think it was last night we went over $31 trillion of national debt. | ||
| $31 trillion. | ||
| You've just seen the greatest drop in the history of the country of your net worth. | ||
| $6.1 trillion. | ||
| And that doesn't include the fiasco today. | ||
| That's from the second quarter. | ||
| Also doesn't include the fiasco that's going to happen, the debacle in real estate. | ||
| You've got 17 months. | ||
| You've had this report today. | ||
| So every day you go to work, you're falling farther and farther behind. | ||
| The harder you work, the farther behind you're falling, right? | ||
| And this is because of these. | ||
| And today they're going to be celebrating this orgy of spending. | ||
| In Washington, which is just this this inflation reduction was just it's a phony name. | ||
| It's an Orwellian title. | ||
| It's just payoffs to all their buddies because they know they're going to lose the Senate. | ||
| This was Manchin, that crook. | ||
| He's a crook that, you know, come on, West Virginia. | ||
| Give me a break. | ||
| West Virginia Democrat. | ||
| He's a crook getting payoffs for all his lobbyist buddies. | ||
| Everybody's putting there because he knows he's not going to have the chairmanship of that committee any longer. | ||
| That's a joke. | ||
| It's a joke. | ||
| And this is why I got Major Malloy. | ||
| He's been running really on economics package. | ||
| The guy Welch that he's running against is part of the problem. | ||
| A career politician. | ||
| If you've been in Washington, D.C. | ||
| for 40 years, you're the problem. | ||
| You're not a solution. | ||
| You're the problem. | ||
| You shouldn't have to say anything more than that. | ||
| Just put these numbers up. | ||
| It's the lived experience of working class people. | ||
| But to do that, these Republicans that are not have to have to actually understand the lived experience. | ||
| It ain't crudités. | ||
|
unidentified
|
Okay. | |
| You can't, you can't give me that brother. | ||
| You got to go boom, boom, boom, boom, boom. | ||
| With the facts and it ought to be relentless and ought to be every day. | ||
| What I'm hearing is a lot of happy talk and scrambling around. | ||
| This is a referendum on a financial disaster. | ||
| Look what he's done in 17 months and compare it. | ||
| Steve Cortez's analysis of the golden age of the fall and Christmas of 2019 and what 2019 was compared to where we are today. | ||
| And ladies and gentlemen, and we have never been wrong on a big call. | ||
| I don't think we've been wrong on a small call, but particularly the big calls. | ||
| We are warning the country that we are one or two moves away of what can't be reversed for a decade, a decade. | ||
| This is the precipice we're on now. | ||
| This is reckless, right? | ||
| Remember in investment banking, we have those engagement letters, Steve, you have negligence, gross negligence and recklessness. | ||
| This is reckless. | ||
| The standard of care here, right, is reckless. | ||
| I want to bring in, do we have the cold open? | ||
| Let me play major. | ||
| Molloy up in Vermont. | ||
| When you talk about wave, this is how you get a state like Vermont, the common sense folks up there, these flinty New Englanders, right? | ||
| They're not going to buy this madness that's destroying their country. | ||
| Let's play Major Molloy's cold open. | ||
| I'll bring him in. | ||
|
unidentified
|
Congress controls the budget, and I think it's actually been more Democrat overspending, well it has been, than Republican, and particularly the last year and a half, year and a half, with even Senator Manchin calls it reckless overspending. | |
| That is the reason, if you ever took economics, you know, just churning out money, increasing the M2 money supply, always and everywhere, it's going to result in inflation. | ||
| That's why we have the inflation and now recession that we're in. | ||
| So I would look to have discipline. | ||
| It kind of gets back to having the overall view of Republican versus Democrat. | ||
| I'm not in favor of overspending or new taxes. | ||
| So that's exactly what's going on now and they're trying to push new taxes on us. | ||
| I look to face Peter Welch and I've done research that the national debt has gone up 300% on his watch. | ||
| 300% that's failure that's that gets you fired that's not performance so um uh just really just uh discipline uh spend within a budget like we all do Okay, I want to bring in Major Gerald Molloy now. | ||
| Look, compare and contrast, Welch is part of the problem. | ||
| He's been there forever. | ||
| The national debt's going over $31 trillion, net worth the American people, historic crash. | ||
| These numbers, the inflation, which shows how your lived experience every day, 17 months in a row, real wages declining, and we ain't seen the worst of it, because they're bound and determined to spend more money. | ||
| Major Gerald Molloy, what is your theory of the case of how to take on Peter Welch in Vermont, sir? | ||
|
unidentified
|
Well, Steve, first off, thank you very much for having me on. | |
| So I just had a debate with Mr. Walsh, and it was very interesting right off the bat. | ||
| Our opening comments, I talked about the economy, 40-year high inflation, record high gas prices, recession, and exactly that, the $31 trillion debt. | ||
| It's a result of massive reckless overspending. | ||
| And it's also a result of the decision to kill the oil and gas industry. | ||
| So it's inflicted that on the American people. | ||
| On the other hand, he talked about insurrection. | ||
| So he's missing the boat. | ||
| And then I talked about, you know, why me? | ||
| Exactly some of the things you and your guests have been talking about. | ||
| Common sense, discipline, actual demonstrated performance and leadership, and maybe most of all, the willingness to make a tough decision that career politicians are just not willing to make. | ||
| And, you know, I even talked also about we've got a disconnect here. | ||
| The president is looking to spend another trillion dollars on the loans and more overspending. | ||
| And while our Fed is going to tamp down again, another 75 basis points here, probably in the next week. | ||
| So you look at that, that was behind the power curve and trying to catch up to inflation. | ||
| But even in doing that, we're adding another 400 billion To our national debt. | ||
| So it's, it's, I heard the guest talk. | ||
| When the rates start going up, and we're going to talk about this, Cortez, I know you can't have a default on U.S. | ||
| currency, but all this discretionary spending that we're just printing money because we don't have the cash to pay for it, it's going to explode because the interest payments on the debt are going to explode. | ||
| Major Malloy, just here's a question. | ||
| In Vermont, which doesn't get a lot of national coverage, and of course, war rooms all over it, those are practical people. | ||
| Those are common sense people. | ||
| They're kind of part of the backbone of this country. | ||
| When you go out and talk to people in Vermont about what's going on in the economy, what are you hearing from them? | ||
| Are they talking insurrection? | ||
| Are they talking, oh, it's the end of democracy? | ||
| Are they worried about the lived experience of their lives and their children and their grandchildren? | ||
|
unidentified
|
Vermonters are worried about the future and their economy and the pocketbook and I talked about that in my campaign, part of my decision process when Senator Lee made his announcement. | |
| I thought about running and I decided I need to run. | ||
| Our country's going in the wrong direction and what helped me in that process is we affirmed it every day since in the 10 months. | ||
| I think I've met well over 10,000 Vermonters and talking to them. | ||
| I would say a good solid 85% are very concerned about... | ||
| Beyond concerned about the economy and the direction we're going, they realize it's not sustainable and they want change. | ||
| And that's what this election is about. | ||
| It's about changing the course and getting our country back on track. | ||
| Now, Major, you're a West Point grad and you've, uh, you, uh, served, uh, your career was in the army. | ||
| Is that correct? | ||
| Is that your background? | ||
|
unidentified
|
Uh, yes, Steve. | |
| Yes. | ||
| So graduated from West Point, served 22 years on active duty around the world. | ||
| Uh, I am a combat veteran. | ||
| I led the operations of, uh, Battalion firing 400, excuse me, across 400 kilometers firing 650 MRS rockets and help liberate Kuwait. | ||
| I served with about 20 NATO partners and allies and I did five years in business, excuse me, five years in government, across many government organizations in the last 11 years in business. | ||
| So I bring business experience to grow new jobs, well-paying jobs here in Vermont. | ||
| I think my experience mostly in the DC area, again supporting government organizations, I'm going to apply that to Solve problems and grow business, which has been missing here in Vermont. | ||
| Major, how do people get to your campaign site? | ||
| How do people find out more about you on social media? | ||
|
unidentified
|
Sure, it's DeployMalloy. | |
| One word, DeployMalloy.com. | ||
| Major Malloy, I look forward to having you back on there. | ||
| Fight on up in the great state of Vermont. | ||
| Thank you, sir. | ||
| We're going to return. | ||
| We've got Steve Cortez. | ||
| We're going to drop and get into more of the numbers. | ||
| We're right there. | ||
| If Republican candidates just go and put the facts forward to the American people, I don't care what state you're in. | ||
| They're going to sit there and go, you know what? | ||
| I think I'm going to give those guys a shot, right? | ||
| What Biden in this illegitimate regime is doing is destroying, destroying the American economy and with it, the American working class. | ||
| Steve Cortez with his in-depth analysis of exactly what's going on next in the world. | ||
|
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War Room. | |
| Pandemic. | ||
| It's all started, 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. | ||
| War Room. 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, sleep the sleep of the just. | ||
| You need it more now, more than ever, because remember, 20 hours a day, you're manning the ramparts of the War Room like we are here. | ||
| So go to mypillow.com, promo code warroom, per kale sheets. | ||
| The best I think Mike's ever put up, 29 bucks. | ||
| Go upsize at $39. | ||
| The sale's only gonna last as long as you got the sheets, so go check it out. | ||
| Also, you got all the buy one get one frees and everything else. | ||
| You go to our square, that's when you go to mypillow.com, promo code war room, you get all the special deals, all the best sales right there. | ||
| Also, now more than ever, I'm doing this continual series with Birch Gold on the end of the dollar empire, okay? | ||
| The second part of the series is the fall of the dollar as the prime reserve currency. | ||
| Another article in the Financial Times this morning about the exact same thing, about China and Russia and all of them looking at a basket of currencies they can get away from the us being the prime reserve currency. | ||
| You think your life's bad right now? | ||
| Hey, wait till that's, wait till we, wait till the Biden administration collapses us on that. | ||
| That's when we become Argentina. | ||
| Make sure you go check it out. | ||
| It's all free, birchgold.com forward slash Bannon. | ||
| It's totally free. | ||
| The first part's the politics of money. | ||
| The second part's about the prime reserve currency. | ||
| We need the war room posse and the deplorables to get up to speed on the concepts that we're gonna be talking about of how important the federal reserve is. | ||
| We have to end the Federal Reserve as we know it. | ||
| It has to be restructured. | ||
| If we have a central bank at all, it has to have more control by the people. | ||
| But you need to understand how this thing flows and how it works. | ||
| Okay. | ||
| Steve Cortez, my brother, you've got some charts to go through. | ||
| Take it away. | ||
| Now, here's the thing that's unique. | ||
| Cortez and Navarro have been the only two guys talking about this because, remember, everybody else is cheerleading. | ||
| They want you to buy stocks and bonds on these other channels. | ||
| We're unique. | ||
| This is kind of unique in American history. | ||
| You know, I've been at this a long time since I left HBS and went to Goldman. | ||
| Very rarely, and I don't even remember seeing, we have a collapse of the stock market, and the stock market thinks down 700 today. | ||
| As we keep saying, hey, that's the cream. | ||
| Look at the bond market. | ||
| There's no place to hide. | ||
| The grandmothers are getting crushed today. | ||
| Steve Cortez, why? | ||
| Yeah, no, correct. | ||
| And you know, look, stocks are more interesting. | ||
| Stocks are for show, but bonds are for go. | ||
| Bonds have a much more direct impact on the lives of most Americans than stocks do. | ||
| They're both important. | ||
| We're going to get into the details. | ||
| And to your point, as we speak right now, the Dow is absolutely getting crushed down 786 points right now. | ||
| Semiconductors, that sector down almost 4%. | ||
| The housing sector down over 4%. | ||
| But as bad as that news is, the bond news is even worse, which we'll get to in a moment. | ||
| But first, let's talk about the reality that consumers are facing right now, because you hear that headline number of 8.3%. | ||
| Okay, let's dig into some of the details. | ||
| So if we pull up chart number one, I talk about this basket a lot. | ||
| I call it the have-to basket. | ||
| This is the Cortez non-discretionary items, the three most important items, have-to items that every person must pay for simply to live. | ||
| gasoline groceries, so n groceries, food at home a of today's reports. | ||
| groceries, food at home a today's reports. These ar gasoline of 25% groceries up 33% so that have to ba up 24% on an annualized b absolutely crushing for r Working-class, lower-income folks simply cannot handle these kinds of prices. | ||
| That's why, right now, as we speak, one out of every six American households, 20 million American households, Are delinquent on their utility bills and they are facing what Bloomberg called a quote tsunami of shutoffs in the coming months because they simply can't afford these prices. | ||
| Part of why they can't afford is not just the prices are rising so fast, but it's because their pay can't keep it. | ||
| It is an absolute implosion. | ||
| Americans are working harder and harder to fall further and further behind. | ||
| That is the reality that they face every single day. | ||
| Let's look at chart number two, please, that we have 17 consecutive months of declining real wages in this country. | ||
| It is an absolute implosion. | ||
| Americans are working harder and harder to fall further and further behind. | ||
| That is the reality that they face every single day. | ||
| Real wages are crashing. | ||
| I want to deconstruct that for a minute because it's so unusual. | ||
| Why has it gone down? | ||
| down 3.4% down, Steve. | ||
| I mean, listen, real wages are not supposed to go down at all. | ||
| They're certainly not supposed to go down for 17 consecutive months. | ||
| That's the reality that Americans are facing right now. | ||
| I wanna deconstruct that for a minute because it's so unusual. | ||
| Why has it gone down? | ||
| Remember, when I talk about the golden age of Trump in the fall and winter and Christmas season of 2019 is because that's the culmination of a bunch of policies. | ||
| There you had 1% inflation. | ||
| Correct me if I'm wrong, I think it was 11% wage increase among blue collar and non-college graduate workers. | ||
| I mean, these were historic, first time they'd ever been, historic numbers. | ||
| That's the cause of Trump's economic policies. | ||
| Then you have Biden. | ||
| You've had 17, 17 consecutive months. | ||
| I want the audience to understand. | ||
| The harder you're working, the farther you're falling behind. | ||
| Every month you are falling behind. | ||
| If you take yourself as a business, you have an income statement and you have a balance sheet, right? | ||
| You're getting crushed on your income every month. | ||
| You're falling farther and farther behind because the inflation is out of control. | ||
| Particularly when you go look at Cortez's core basket. | ||
| Of how you have to live your lived experience basket, right? | ||
| Then if you look at overall of your assets and this is not even marking a market real estate with the with the rate increases next week going to implode. | ||
| You're just mark to market bonds and stocks of what they've done to you. | ||
| You've lost 6.1 trillion dollars of net worth the greatest drop in one quarter in the history of the country. | ||
| Steve Cortez. | ||
| No, exactly correct. | ||
| And, you know, to that point, by the way, of what you have to pay for the staples, the have-to items in your life, this means that for the vast majority of Americans, there are no more luxuries. | ||
| There are no more discretionary items to be bought. | ||
| And to connect this back to financial markets, you know, what's reflecting that reality today is the stock of Nordstrom. | ||
| And I'm not trying to pick on this company, but it's generally an expensive place. | ||
| Not a lot of have-to items in a Nordstrom. | ||
| Nordstrom stock today, Steve, right now as we speak, is down 6.5% on the day. | ||
| It is worth roughly half of where it was last November. | ||
| So last November, heading into the Christmas season of last year, consumer-facing stocks were actually doing well. | ||
| They believed that they were going to have a good Christmas season. | ||
| Almost every consumer-related stock Topped out then in November because the holiday season was incredibly disappointing and was a precursor to what was to come throughout this year. | ||
| And now the upcoming holiday season, the upcoming Christmas shopping season looks like it's going to be absolutely miserable. | ||
| Hence a stock like Nordstrom. | ||
| Down 6.5% on the day. | ||
| But again, I mentioned bonds. | ||
| Let's get to that bond chart. | ||
| If we can show chart number 3, because I think this is crucial, Steve, because there is nowhere to hide right now in Joe Biden's economic implosion. | ||
| That chart, which we're showing, is the LQD. | ||
| That is an ETF, an exchange-traded fund. | ||
| So even though it trades like a stock, it's actually full of bonds. | ||
| What you are buying when you buy LQD is investment-grade corporate bonds. | ||
| Now previously, I showed high-yield corporate bonds. | ||
| Those are riskier bonds. | ||
| This is investment grade, meaning these are blue-chip companies who have paid their bills forever, and most investors believe are going to continue to pay their bills forever. | ||
| Okay, so these are the bonds of absolutely blue-chip companies. | ||
| The LQD is supposed to be boring. | ||
| To your point, Steve, it's supposed to be for grandmas. | ||
| They collect some dividends. | ||
| They collect some yields on this. | ||
| It doesn't change wildly in price, and they go on their merry way. | ||
| That is the norm. | ||
| Well, in the Biden economy, no markets are functioning normally, whether it's Main Street businesses who are delinquent on the rent, or whether it's capital markets and the bond market like LQD. | ||
| So if you look at that chart, which has absolutely imploded, and that chart is since Joe Biden took office, On the LQD. | ||
| It is right now as we speak. | ||
| It just made, by the way, I had marked there 106.92. | ||
| That was the low before the opening today. | ||
| We have now, as of today, broken that low. | ||
| So we are at a new 52-week low. | ||
| We're at a new low for the Biden presidency in bond prices. | ||
| As prices go down, interest rates go up. | ||
| That's the way bond markets work. | ||
| And the LQD right now is down 21%. | ||
| Since Biden's inauguration day. | ||
| Steve, it's hard for me to convey to folks who don't typically watch bond markets, but believe me, when investment grade, normally boring, safe corporate bonds are down 21% in just over a year and a half, that is absolute capital markets carnage. | ||
| There is nowhere to hide. | ||
| The reason we do Capital Markets is because it's linked with politics and power. | ||
| You're going to notice it today, and I'm sure some of the audience, when you're calling up your financial advisor and saying, hey, there's blood all over my account. | ||
| Why is that? | ||
| Normally, stocks go down, bonds are safe, a safe harbor. | ||
| The reason is, there's a logic to this. | ||
| This government, this illegitimate government, is literally out of control in what they're trying to do. | ||
| This radical Green New Deal transition, they've crushed our energy sector. | ||
| And here's what they're doing. | ||
| Remember, $31 trillion we hit overnight. | ||
| I think it'll be tomorrow, today. | ||
| $31 trillion of debt on the balance sheet of the nation. | ||
| Another nine and a half trillion dollars over at the Federal Reserve. | ||
| They're kind of side pocket for the elites, right, which they haven't started tightening. | ||
| You're going to have an interest rates are going to start sucking up more and more on the government bonds. | ||
| You're not gonna have, you're gonna have, we're gonna have less and less money to pay for discretionary, which you don't have any money to pay for it now. | ||
| So you're gonna have to keep printing money. | ||
| Biden's solution, they put up $47 billion of emergency spending act, because on September 30th, there's no appropriations bill. | ||
| They're not gonna do it. | ||
| They're gonna come back to you, wait for it. | ||
| This week, they're gonna start talking about the continued resolution. | ||
| They got to kick it down the road. | ||
| You know, give me a couple trillion dollars. | ||
| This bill was $47 billion. | ||
| What? For COVID relief, for monkey pox. | ||
| And guess, and wait for it, Ukraine. | ||
| Particularly all this media, Ukraine's doing so great now. | ||
| It's the greatest offense I've ever seen. | ||
| It's Patton. | ||
| They're like Patton going across the southern France. | ||
| It's all nonsense, all crap. | ||
| It's all to get money and more money. | ||
| Then he's going to come, discretionary spending, Cortez, is going to be another $3.5 to $2 trillion. | ||
| This is madness. | ||
| It's madness. | ||
| It's destroying the nation. | ||
| It's going to destroy every generation. | ||
| We are going to be cursed by every generation that comes up because we had the ability to stop it. | ||
| Steve Kortes. | ||
| Right. | ||
| And Steve, you mentioned Argentina. | ||
| And, you know, I often bring that up because I think it's an important example. | ||
| It's an important warning for America of what can happen here. | ||
| I think too many Americans just assume that because of our prosperity, because of our great history of innovation, And success in this country that we can't become Argentina. | ||
| But a century ago, Argentina was as prosperous as the United States, on many metrics actually wealthier than the United States. | ||
| And here's how we become Argentina. | ||
| Right now, the supremacy of King Dollar has been greatly imperiled by Joe Biden. | ||
| If we lose reserve currency status, and I think that process has already begun, Then the world is no longer willing to finance our massive debt on generous terms at low interest rates. | ||
| Interest rates are spiking today. | ||
| They have been spiking throughout the Biden presidency if they continue to spike. | ||
| And if the world loses confidence in a systemic way in the United States dollar because of the adventurism and the profligacy of Joe Biden, and I believe again that that has started that process. | ||
| Then we're looking at a future where we cannot finance our debt, and we then enter into hyperinflation. | ||
| A lot of Americans are already living with hyperinflation. | ||
| Again, middle class people right now, 24% as a basket for gas, groceries, and utilities, that's hyperinflation. | ||
| That is Argentina. | ||
| That is the Weimar Republic. | ||
| We are already there for middle class people in a lot of segments of life. | ||
| Some of the most key But I'm saying in totality, our economy can go there if allowed. | ||
| Now, having said all of this, we have the ability to, in just weeks away, we have the ability to arrest this awful trend, to change the trajectory of America. | ||
| And the quickest way we change it, Steve, a lot of policy reform needs to happen. | ||
| But the quickest policy reform that in some ways really should be the easiest is unleash American energy again. | ||
| If we elect the right patriotic populist fighters who go to Washington D.C. | ||
| and demand of Joe Biden that we once again unleash the full power of American energy, that would be the quickest fix. | ||
| To this imbroglio, this absolute economic implosion that this country is suffering from right now. | ||
| But I think it's important to offer both perspectives. | ||
| Let's be very clear in a dispassionate way. | ||
| Let's talk about the trajectory that we are on. | ||
| And it is a road to economic perdition. | ||
| It is a road to Argentina. | ||
| But let's also talk about the solutions, which are very real as well. | ||
| I tell you what, I'm gonna bring you back right after the break and we give all the social media how they get to you, particularly your Chalk Talks. | ||
| I got Mike Davis on deck. | ||
| We got a lot to go through today in the War Room. | ||
|
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and be back in just a moment. | |
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| Okay, I want to come back. | ||
| Steve Cortez, any closing thoughts for folks? | ||
| We're going to be covering this non-stop. | ||
| We're going to kick off the show this afternoon at 5 o'clock. | ||
| Philip Patrick from Birchgold is going to join us with his assessment and analysis as we're going to cover this throughout the day. | ||
| Remember, economics and capital markets directly affect your life like nobody's business, right? | ||
| This show is Signal. | ||
| I understand sometimes it's like spinach. | ||
| right? But hey, you need to eat your spinach to be strong, right? And we're trying to make you strong. We're not here to give you happy talk or chase these, some of these ridiculous stories people chase because they don't mean anything. They're not important to the, to you individually, your family, and most importantly to your country. Steve Cortez. Steve, we have a country to save. | ||
| And I'm not exaggerating when I say that because the woke communists right now, these are perilous times in our country. The woke communists, they're destroying our prosperity. | ||
| They're destroying our sovereignty. | ||
| So if we stay laser-focused on the two I's, on inflation and immigration, the issues that matter most to voters, we are going to save this country. | ||
| And that starts in just a few weeks on November 8th. | ||
| Steve, as we speak right now, unfortunately, here's the reality in the markets reacting to this terrible CPI report. | ||
| These are the sectors that are down more than 4% for the day. | ||
| The Nasdaq, semiconductors, housing, retailers, That is the landscape of pain out there right now in the country. | ||
| But once again, we can take action. | ||
| We will take action. | ||
| By the way, Jim Cramer, we played the thing. | ||
| He was talking about 11 o'clock. | ||
| Don't listen to these people. | ||
| And we're not here to give you direct investment advice. | ||
| We're here to kind of lay the macro, right? | ||
| You've got to make your own decision. | ||
| Talk to your own financial advisor because we don't do that. | ||
| Yeah, but as bad as those things are thrown up, don't, whatever you do, don't look, when a guy says buy the dip, go talk to your financial advisor, say, hey, what am I doing here? What's happening? There's blood all over everywhere. Steve Cortez. | ||
| Exactly. | ||
| And normally, by the way, on a day like that where there's blood in the markets, normally you would see bonds doing well, holding their own, if not advancing. | ||
| But today we have the opposite. | ||
| So even the sort of so-called grandma investment sectors are doing terribly. | ||
| Grandma right now is pulling out her blue hair because there's no place to hide in this market. | ||
| You're getting absolutely creamed in stocks as well as bonds, taking it from both sides because of Joe Biden and the economy. | ||
| But here, you know, Monica Crowley comes in so deliberate. | ||
| I want people to understand something. | ||
| Cortez, you've been in the pits of Chicago after coming out of Georgetown. | ||
| You were in the pits of Chicago, which is the toughest environment in the world, and you understand true capitalism right there. | ||
| I went to HBS, which is the West Point of Capitalism. | ||
| It's a globalist, and that time Porter and those guys are running for globalism. | ||
| But the rigor of how they teach you to think about capital markets and finance and then Goldman, you understand the math and you understand how the math correlates to each other. | ||
| Have you in your professional career, what's so shocking to me today as I look at this, And to see the insanity that is going on, because it's not logical. | ||
| There is no logic to this, right? | ||
| And we are driving our elites. | ||
| I sit there and read all the business press throughout the world. | ||
| I watch this stuff and I sit there and go, do they actually believe this? | ||
| This is madness. | ||
| This is madness. | ||
| Steve Cortez, you've done, that's what's so serious. | ||
| That's what's so disturbing here. | ||
| And that's why MAGA has to save the nation. | ||
| You have to put common sense, tough people in there. | ||
| They don't have to be geniuses. | ||
| They had to give me the first hundred people in red ball caps to show up at a Trump rally. | ||
| Let me have those people in the United States Senate and the country's going to be fine. | ||
| Okay. | ||
| That's the type of common sense. | ||
| The flinty Yankees, the tough people out in Wyoming and Montana, the people in Arizona. | ||
| We need common sense, working class and middle class people. | ||
| Because right now, I can tell you from a guy who was trained in this, Cortez, help me out here. | ||
| What they're doing is insanity, sir. | ||
| Well, 100%. | ||
| I mean, it literally, again, it is putting America on an economic road to perdition. | ||
| And I can't emphasize enough how risky this current situation is for our entire country. | ||
| And, you know, once again, going back to that basket of half two items of 24% year over year for groceries, gasoline and utilities. | ||
| Steve, that's depression level pricing. | ||
| Forget about recession. | ||
| That's depression-level pricing right now. | ||
| That will induce a depression. | ||
| We're going to see mass evictions, mass foreclosures, if we don't change trend direction economically. | ||
| And repose. | ||
| Repossession of the cars. | ||
| By the way, you didn't even include rents. | ||
| Rents may be the worst. | ||
| Rents may be the worst number. | ||
| Cortez, thank you. | ||
| One more time. | ||
| How do people get you on social media? | ||
| Yeah, please follow me. | ||
| We're saving this country one patriot at a time. | ||
| Follow me at Steve on the Twitter. | ||
| Excuse me. | ||
| That's on the getter. | ||
| I'm at Steve. | ||
| And on the Twitter, I'm at Cortez. | ||
| Steve Cortez with an S. | ||
| Thank you very much. | ||
| I want to bring in Mike Davis. | ||
| Mike, first, I want to just talk some overall thing, and then I'm going to bring you through the break. | ||
| But we just had Major Malloy up here. | ||
| He's running in Vermont, right? | ||
| Not known as a red state. | ||
| And they have a debate, and he lays out the stuff on the economics that we're talking about and how it's crushing people in Vermont. | ||
| He says his opponent, the opening statement, is all about the insurrection and the end of democracy. | ||
| You're one of the best lawyers I know. | ||
| Just like Cortez has been dead right on the economy, you've been dead right on all this madness from the beginning. | ||
| Walk us through. | ||
| Is that the only narrative they've got? | ||
| Is that Trump is lawless, it's all insurrection, these people are anti-democratic? | ||
| Is that what they're running on because they can't face the bloodbath that the capital markets and the economy gave them today, sir? | ||
| Absolutely. | ||
| Five weeks, the Biden Justice Department has been investigating Trump's non-crimes of maintaining his presidential records at Mar-a-Lago, just like every former president before him under the Presidential Records Act. | ||
| Trump's legal filing yesterday made crystal clear what we've been saying from day one. | ||
| This is another political hoax. | ||
| The Biden Justice Department is simultaneously investigating the non-crime of questioning the 2020 presidential election, just like the Democrats did in 1968, 2000, 2004, and They're even doing home raids and investigating 40 of Trump's most loyal supporters. | ||
| The Senate Judiciary Committee simultaneously is now investigating the non-crime of Bill Barr firing Jeffrey Berman The U.S. | ||
| attorney in Manhattan who let BLM destroy New York in the summer of love, June of 2020. | ||
| It's amazing that Bill Barr was the Democrats' hero last week when he was trashing Trump. | ||
| But, you know, how quickly today's Marxists turn on their allies. | ||
| And this is all just an amazing coincidence, Steve. | ||
| The Biden Justice Department, Senate Judiciary Democrats decided to simultaneously open several investigations on Trump based upon events from nearly two years ago. | ||
| Uh, and they just, just in time for the 2022 midterm election. | ||
| We're gonna talk, we're gonna talk about that because you called it out in 20 when they burned down the country in a real insurrection. | ||
| Okay, short commercial break. | ||
| Mike Davis from Article 3, uh, Terry Schilling from A Miracle's Principle Project, Carrie Lake. | ||
| We got it all. | ||
|
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Where? | |
| In the War Room. |
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