Feb. 2, 2023 - Bannon's War Room
48:48
Participants
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| Speaker | Time | Text |
|---|---|---|
| This is the primal scream of a dying regime. | ||
|
unidentified
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Pray for our enemies, because we're going medieval on these people. | |
| I got a free shot of all these networks lying about the people. | ||
| The people have had a belly full of it. | ||
| I know you don't like hearing that. | ||
| I know you try to do everything in the world to stop that, but you're not going to stop it. | ||
| It's going to happen. | ||
| And where do people like that go to share the big lie? | ||
| MAGA media. I wish in my soul, I wish that any of these people had a conscience. | ||
|
unidentified
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Ask yourself, what is my task and what is my purpose? | |
| If that answer is to save my country, this country will be saved. | ||
|
unidentified
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War Room, here's your host, Stephen K. Bannon. | |
| You know, I think I raised this point with you earlier and it continues to be something I'm kind of obsessed with here, which is, in 2010, this was something, spending, austerity, the deficit debt that Republicans ran on. | ||
| They could plausibly say they were implementing. | ||
| This time around, it was just nowhere. | ||
| I covered the campaign very closely. | ||
| It was not anywhere. | ||
| In fact, I thought Nate Cohn made a good point. | ||
| He was talking about in March 2021, right? | ||
| So Biden's just elected and you've got the ARP, American Rescue Plan. | ||
| A morning consul political poll found that more Republicans said they heard a lot about the news that the Dr. | ||
| Seuss estate had decided to stop selling six books it deemed had offensive imagery than about the $1.9 trillion stimulus package enacted into the law every week. | ||
| Like, I think this is a misreading even. | ||
| Of their own base. | ||
| It's like vestigial. | ||
| It's like writing last year's date on your checks in January. | ||
| This is what they're doing because it's what they do, but I don't even know who wants it. | ||
|
unidentified
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I mean, it's completely divorced from the last campaign. | |
| And so there's clearly no public appetite for this. | ||
| And I agree with you in their base. | ||
| I mean, if you were to poll seniors in Florida, in Arizona, in Georgia, you know, right center seniors, you know, they would be they're going to be apoplectic about this. | ||
| And, you know, I remember back in 2011, you know, as we got closer, you know, this dominated not just news coverage, but social media. | ||
| And because we went through that, it's all going to happen much more intensively and earlier. | ||
| So there's going to be a white hot spotlight on this. | ||
| And what you can see is the Republicans can't articulate what they want. | ||
| Right. You made a really important point. | ||
| But right now they can. | ||
| And I think they're just expecting that they have to fight. | ||
| You know, they're all auditioning to be the chief, you know, carnival barker in Tucker Carlson Circus, essentially. | ||
| Not worried about swing voters, clearly not worried about the economy. | ||
| So I think you're right. I think there's going to be a sense of whiplash. | ||
| Voters are going to be like, wait, wait. Now, they had a miserable election. | ||
| You know, they basically limped to the finish line and barely got across. | ||
| But even with that, voters who might have voted for them in some districts say, I didn't vote for this. | ||
| It was to do something about inflation, maybe, or about crime. | ||
| not to basically, you know, point a self-inflicted massive wound at the American economy, potentially. | ||
| American parents raising their kids across this country right now, and they see this national debt of $31 trillion growing and growing, worried that their kids' future is going to be buried in that mounting debt. | ||
| What do you tell those parents watching right now? | ||
| I'll tell those parents right there that's why I'm here. | ||
| That's why I'm here to make sure their children do not have and continue this debt. | ||
| If you just look, if we continue the trajectory that we're on in the next ten years, we'll spend eight trillion dollars just on interest. | ||
| Eight trillion dollars just on interest. | ||
| What that means, though, too, because of the spending that has been going on, is that's why you have inflation. | ||
|
unidentified
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America's strength will shrink it. | |
| Everyone has always said it doesn't matter what occupation you're in, whether you're U.S. general or not, the greatest threat to America is our debt. | ||
| Our debt is now at 120 % of GDP, meaning our debt is larger than our economy. | ||
| This is higher than at any time in American history. | ||
| And it's higher at any time in American history when the revenues that are coming into government are higher than any other time. | ||
| So, we've got a lot of revenue, we just have a spending problem. | ||
| And that's where I want to find that we can find common ground. | ||
| Mr. President, can you commit that the U.S. will not default on its obligations? | ||
| If I look at anything and you want to equate this, if you have a child and you give them a credit card and they spend that limit, you're responsible for paying that credit card. | ||
|
unidentified
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But the responsible thing too is going forward, not just raise the limit, but look at how you're spending. | |
| You know, I look at Chuck Schumer. | ||
| He's never passed a real budget. | ||
| He's never passed any appropriation bills, but he puts a 1.6. | ||
| It is Thursday to February in the year of our Lord, 2023. | ||
| It is Groundhog Day. | ||
| And of course, we're going to be monitoring that closely with Paxitani Phil. | ||
| But it's like Groundhog Day again. | ||
| We're here. I want to make sure everybody understands because I'm talking to the chairman. | ||
| Of the men and women that form the office of the chairman of the creditors committee of the full faith and credit of the United States government. | ||
| And I want to make sure we're deconstructing this because it's going to be very important going forward. | ||
| So I got Cortez, I got Brett, and we're going to introduce you to a gentleman from Heritage. | ||
| And Heritage is just doing amazing, fantastic work. | ||
| In fact, Steve Cortez has got up on Getter. | ||
| A great piece by Dr. | ||
| Kevin Roberts about the defense budget. | ||
| Dr. Roberts is going to join us tomorrow, I think, in the 5 o'clock hour to go through this amazing analysis at Heritage. | ||
| Of course, we've had Mike Howell on a lot. | ||
| They're doing great work. We've got E.J. and Tony is going to join us here momentarily. | ||
| But I want to make sure everybody understands, fully appreciates what's happening here, as Cortez and Brad can appreciate the information warfare about this. | ||
| Rachel Maddow's gone. She punched out, right? | ||
| Remember, she didn't want anything to do with this. | ||
| So she punched out to go, I don't know, write the new West Wing or whatever she's doing. | ||
| She shows up once a week and does her thing, but she's out as the railhead of the thinking. | ||
| But she's got her acolyte. | ||
| Chris Hayes is the new command center over at MSNBC. From MSNBC and the New York Times. | ||
| Remember, if the New York Times didn't publish every day, MSNBC would be a test pattern. | ||
| So it's all New York Times, Washington Post, the insiders. | ||
| But the railhead of that is Chris Hayes. | ||
| And he brings on floof last night, the Obama guy. | ||
| And they're saying, I do this so, you know, this is coming out of nowhere. | ||
| What are they even talking about? Nobody mentioned it as a campaign. | ||
| Oh, no, no, no. And they watch this show closely. | ||
| They understand that the important voices, the voices that mattered, and that would be MAGA, that would be this audience, have been maniacally focused on this massive national security interest concern of The out-of-control debt, the rising interest rates, all of it maniacally. | ||
| For the last two years, as Steve Cortez can tell you and Brad, when we called all the shots on the American recovery plan, the debt, you know, this time it's totally different. | ||
| And they just want, you know, why don't you even bother? | ||
| It's not popular. Nobody's talking about this. | ||
| This is not a ticking time bomb. | ||
| This is a bomb that's about to go off. | ||
| It's going off. And Brad's got some analysis that talks to you about the underlying real economy. | ||
| And how it's a dead carcass, and the only way the system works, the con works, is this fiscal domination by the uniparty that continues to have this massive spending, discretionary spending, trillion dollars at the Defense Department, trillion dollars here, trillion dollars there, ba-bing, ba-bing, ba-bing. | ||
| And they got their buddies over the Fed just continuing to print the fiat money. | ||
| That system's coming to an end. | ||
| It's not sustainable. | ||
| They talk about not sustainable as far as the Green New Deal goes and all the net zero carbon. | ||
| Hey, sustainability, let's talk about financial sustainability. | ||
| And the people getting a vote on this is the Global South who control all the resources because they're going to say, hey, look, we control the resources, and you keep giving these things called Federal Reserve notes. | ||
| We don't know if they're worth it, and maybe we do a basket with somebody else and have another. | ||
| You're like England after the war. | ||
| We want to have another currency, another basket of currencies and take you off, take off the dollar from being the prime reserve currency, and then we're Argentina. | ||
| This audience gets it, and all they're going to try to do now, he just said it's going to turn white hot. | ||
| Nobody talked about this. | ||
| It's not popular. Hey, we're not here to do popular things. | ||
| We're here to do what's right for this constitutional republic that was bequeathed us, and we're not going to turn it over after our watch with a massive financial crisis. | ||
| Kenneth Rogoff's book, This Time is Totally Different. | ||
| Every one of these people say it every time before their economy collapses. | ||
| We're at 120%, and it's actually worse than that. | ||
| Remember, that's just the face amount of the Treasury. | ||
| That's just the – the 31.5 is just the face amount. | ||
| I think you could argue with the Social Security and the Medicare. | ||
| You get another 30. It's 60. | ||
| And you should not touch Medicare and Social Security. | ||
| You don't need to. We can get there without that. | ||
| And then you've got to add the $9.5 trillion over at Treasury, excuse me, at the Federal Reserve, the balance sheet of the Federal Reserve. | ||
| And hey, note to self, the scam has been – they've been able to kick in, I don't know, $50 billion to $100 billion to help the deficit from profits made from the Fed because of the interest rates. | ||
| Now with the inverted yield curve, Mercatus – Mercatus, the guys over at George Mason, Mercatus, they've got an analysis that says we're sitting on a $1 trillion loss over at the Treasury. | ||
| Guests are kicking in. So I want to bring in E.J. and Tony. | ||
| E.J., thank you very much for joining us here from Heritage, also from Steve Moore's fantastic group, the Prosperity Guys, who are always sitting there thinking about how do we get this economy, the real economy, not the fake financial economy. | ||
| You've got this piece that chills me to the bones about the Great Depression, 1932, and signals you see, sir. | ||
| Can you walk us through it? | ||
| And if Denver can put that up, and if Mo and Grace, I want to get it in all the chat rooms so everybody, Midnight writer, the great Carly Bonet, all of them get this article and start reading it. | ||
| Sir, walk us through your analysis. | ||
| Certainly. Well, Steve, thank you so much for having me. | ||
| And when we look at last year's GDP report, what we find is that the headline number really betrays a lot of the details in that report. | ||
| But no one seems to be willing to read the report and actually find those details. | ||
| And one of the really, really scary things in there is that real disposable income, which is just your disposable income adjusted for inflation, dropped precipitously last year, and 90 % of that drop was due entirely to inflation. | ||
| It fell a trillion dollars. | ||
| Now you can say, well, the economy today is a lot larger than it was in years past, so let's look at that in percentage terms. | ||
| In percentage terms, that's the second worst drop Ever. | ||
| The only time it was exceeded was 1932, the worst year of the Great Depression. | ||
| So if you want to understand how are American consumers actually doing right now, I think that's the perfect piece of context. | ||
| So are you saying, what's the flashing signals? | ||
| I want to go back to your thing about the Great Depression. | ||
| What are the flashing signals? | ||
| Because Brad's going to join us after the break to talk about the underlying economy. | ||
| What are the flashing signals and what are your biggest concerns we should be worried about? | ||
| Well, there's a couple of things, Steve, one of which is that we like to look at business investment to see what is the trajectory of the economy going forward, not just simply where we are now, because if investment is going down today, that signals lower growth in the future, but also vice versa. | ||
| If investment today is increasing, that signals that in the future the economy will be growing faster. | ||
| And when you look at investment, first of all, you have residential investment, which is just falling off a cliff. | ||
| We have two quarters in a row where it's fallen by 25 % or more. | ||
| But on top of that, the only growth in investment right now is coming from a buildup in inventories. | ||
| But why is that happening? It's not because businesses are stocking up thinking that they're gonna have higher sales in the future. | ||
| No, it's actually because they were unable in the fourth quarter of last year to liquidate their inventories at current prices. | ||
| In other words, people literally were so strapped for cash that they started buying less and businesses were left holding goods and services. | ||
| And so now they're going to have to turn around and sell those probably at a loss, which will lead to lower profits, which again points to lower growth. | ||
| So even when you look at some of the positive numbers in the report, again, like business investment, you really need to figure out where is the devil in these details because things are, again, not nearly as rosy as they appear. | ||
| You're a data analytics guy at Heritage and you're an analytics guy. | ||
| As you look at the underlying analytics from the top line numbers, what is your forecast looking forward on this economy? | ||
| I think we're going to see the headline GDP numbers flatline and then turn south this year. | ||
| There really is just no way that you can escape spending, printing and borrowing trillions and trillions of dollars. | ||
| I mean, we really should not be surprised with the results here. | ||
| I tell you what, E.J., just hang on for one second. | ||
| We're going to take a break. I got Brat lined up with an analysis of the underlying economy. | ||
| Steve Cortez here on coming. You know, Hunter Biden, we're dealing signal, not noise here. | ||
| You know, last night, Hunter Biden's lawyer tried a gimmick. | ||
| The gimmick is, I don't know, go to Delaware, go to DOJ, you know, want to pursue criminal charges on Rudy, myself, everybody else on the laptop. | ||
| They basically admitted after two years of line about it. | ||
| Hello! That laptop's actually ours. | ||
| It's not Russian disinformation. | ||
| We don't have time for the nonsense. | ||
| Hey, let the grand jury deal with Hunter's laptop. | ||
| Let the House... You'll see all you want to see, Abby Lowell, in the next week, starting with the House investigations, which we'll get to in the second hour. | ||
| Short break. The economy. | ||
| How it ties. And what does the Ukraine war have to say about that? | ||
|
unidentified
|
All next in the war. Here's your host, Stephen K. Mack. | |
| Okay, a couple things. | ||
| CPAC, Matt Schlapp's going to join us in the second hour to talk about new speakers coming to CPAC. You know President Trump's coming. | ||
| War Room's going to be there, Real America's Voice. | ||
| CPAC.org slash War Room. | ||
| You get $47 off your general mission ticket, and that gets you to... | ||
| Everything you need to get to, right, for us. | ||
| If you want to do extras, I think they're extras too. | ||
| And we're going to do breakout rooms. | ||
| We're going to do meet and greets, all of it, just like we did at Turning Point and just like we did at CPAC. Dallas, we get to meet the entire posse. | ||
| So load up right now. | ||
| I think the ticket's $248 after the $47 discount. | ||
| So go there. It's a one-time good deal. | ||
| CPAC.org slash War Room. | ||
| Go check it out now. This will be an incredibly enjoyable, fun, but also informative as we fire off the football into 2023 and beyond. | ||
| EJ, I just want to make sure at the end, tell me about the spending again because this has got to be cut. | ||
| This is why the bravery and intellectual leadership of Heritage under Kevin Roberts And Cortez has been all over this. | ||
| He's got up on Getter about cutting the defense. | ||
| Everything's on the table except for Medicare and Social Security. | ||
| We've got to cut the defense budget, right? | ||
| Dr. Roberts is going to be on here tomorrow. | ||
| You guys have done an incredible job. | ||
| What was the comment you made at the end about spending, sir? | ||
| So people are wondering why is the economy in the shape it is in right now? | ||
| And it's simply because you cannot spend, borrow and print trillions upon trillions of dollars and not expect negative consequences. | ||
| Look, the sins of the past always catch up with you, be they moral or monetary. | ||
| And that's exactly what we're seeing today. | ||
| The average family, for example. | ||
| has lost $6,000 in purchasing power. | ||
| So in other words, even though their salaries, their wages have been going up, prices have been going up even faster. | ||
| And so they can effectively buy less today than they could when Biden took office. | ||
| But on top of that, now that the Federal Reserve is belatedly raising interest rates, that's adding to borrowing costs on everything from credit cards to student loans, from mortgages to auto loans. | ||
| That's another $1,400 that the average family has lost. | ||
| That's $7,400. Feel like you're poor. | ||
| I was going to get to this. Heritage told me 74, so that's how you add it together, the drop in real wages and the interest rate. | ||
| $7,400 a year on a family. | ||
| Can you afford that? Don't think so. | ||
| That's the real economy. | ||
| E.J., how do people... | ||
| By the way, spending is a tax. | ||
| It's a tax on you. It's a tax. | ||
| How do they get to you? How do people get to you over to Heritage at the Prosperity Group, your social media, all of it? | ||
| Where do they go? They can find me at Heritage.org. | ||
| They can find a lot of the reports I've written at CommitteeToUnleashProsperity.com. | ||
| And you can also follow me on Twitter at Real EJAntoni. | ||
| EJ, thank you very much. | ||
| I'm going to go to Brad, but Cortez, let me bring you in for a second. | ||
| Chris Hayes. And Chris, this is what you got to do. | ||
| You got to get somebody a numbers guy. | ||
| You need an EJ on your staff or Cortez. | ||
| Hayes is a poet. Ploof is a poet. | ||
| They're poets, right? | ||
| They're not serious people. | ||
| They're poets. You need data analytics guys. | ||
| Chris Hayes has a big miss there. | ||
| What is that miss, sir, that he's not thinking about? | ||
| By the way, when you say you need a numbers person, you need a data guy, do you think there's even one of those at 30 Rock where MSWC broadcasts from in the entire building? | ||
| Do you think there's one? I don't think so. | ||
| No, she's in the investment banking business. | ||
| She's a new business person, right? | ||
| She's a new business person. | ||
| In all seriousness, here's what Chris Hayes just totally misses. | ||
| And look, when you watch a lot of these anchors, it's not just Chris Hayes. | ||
| A lot of these broadcasters try to talk about the economy. | ||
| It's like watching a toddler talk about physics, all right? | ||
| I mean, they were just so out of their depth, so out of their realm, that they have no idea. | ||
| What has changed, Chris Hayes? | ||
| Something material has changed, and the American people know it. | ||
| You don't have to be an economist. or a data person to know it. | ||
| Interest rates have changed. | ||
| The regime of essentially free money, it was an artificially repressed interest rate regime of free money that was caused by the Federal Reserve as well as central banks all over the world. | ||
| We knew that it couldn't last forever. | ||
| Well, that bubble was popped. | ||
| It was pierced by the policies of Joe Biden. | ||
| Primarily by his attack on American domestic energy production, concurrent with the exorbitant borrowing and spending that he engaged in, the orgy of borrowing and spending, with the full complicity of the Washington, permanent Washington political class, including Republicans. | ||
| That pierced that bubble, okay? | ||
| And now interest rates, to be specific here, on Election Day in 2020, okay, when Joe Biden prevailed, I don't say won, when he prevailed, On Election Day, 10-year Treasury yield was 0.8%. | ||
| Today, it is 3.4%. | ||
| And that's come down a bit, by the way, in recent weeks. | ||
| But it is still more than four times higher. | ||
| And the way bond math works, Steve, what matters is the percent of the percent. | ||
| In other words, it is four times higher by historical terms. | ||
| 3 % might sound low, but it's not at all low in the context of sub-1%, right? | ||
| So in other words, think of it this way. | ||
| Think if we had interest rates at 5%, 10-year Treasury yield at 5%, which is sort of more normal historically, and then they lurched to 20%, okay, which happened in the late 1970s. | ||
| It's a crisis. Well, what we have right now is an absolute crisis. | ||
| So Chris Hayes, yes, it has changed materially. | ||
| It has changed deficits. They always mattered, but they really matter now. | ||
| So they're not dumb people. | ||
| They're cunning. And here's the reason. | ||
| Obama Obama's the one that went to zero negative interest rates after the debacle. | ||
| And I'm not making any excuses for Hank Paulson and Bush and that crowd who were there with the Uniparty. | ||
| It's all the Uniparty. Remember Obama is supposed to be the most progressive. | ||
| Chris Plouffe, answer this one. | ||
| This is what I want to run cover for him. | ||
| Supposed to be the most progressive president in history. | ||
| Where it really matters, yeah, the pro wrestling in the front, you're progressive. | ||
| Where it really matters, money matters. | ||
| They allowed the greatest concentration of wealth in the history of the American Republic on Obama's watch. | ||
| He's a running dog for Wall Street. | ||
| Just like Bernie Sanders, all these guys give this happy talk. | ||
| Chris Hayes, MSNBC, all the happy talk. | ||
| You allowed the interest rates to go to zero. | ||
| The greatest concentration, but real estate, stocks, this is when the wealthy, it was turbocharged. | ||
| This was the beginning of the oligarchs. | ||
| That was on Obama's watch. | ||
| They got a great book called Confidence Man. | ||
| It's quite frankly, it's embarrassing. Obama's sitting there as a constitutional lawyer. | ||
| He's like, what, what? | ||
| This thing's so over his head. | ||
| That's the way Wall Street rolls. | ||
| That's the way it runs in the Democratic Party. | ||
| By the way, Robert Reich's got this piece in The Guardian about what we have to do as tax. | ||
| Hey, look, for the oligarchs, all the oligarchs are either left-wing progressive Democrats or they're the worst rhinos in the world that hate MAGA. Do you think I have any problem with the oligarchs being taxed? | ||
| Well, at War Room, we do not. | ||
| We would take Reich's thing and we see you that and we raise you because it's all the uniparty wealthy. | ||
| Come on, baby. You want to do that? | ||
| Hey, I'm all in. You want to get these titans? | ||
| Larry Fink? And Ken Griffin, do you think we have any problem? | ||
| I don't think it's tax. | ||
| I think it's reparations. | ||
| I think it's reparations of what they've stolen from the American people on Obama's watch and on Biden's watch. | ||
| Steve Cortez, thoughts? | ||
| Yeah, and by the way, data point on that point of the Obama-Biden administration, what they did in their eight years, the supposedly most progressive administration ever, which massively exacerbated wealth inequality. | ||
| According to Federal Reserve numbers, during those eight years, Only the top 10 % of earners saw their net worth increase. | ||
| The bottom 90%, almost all of America, saw their net worth decline. | ||
| And for black Americans, specifically for black American households, they lost one-third of their net worth during those eight years. | ||
| Wiped out. Wiped out. | ||
| Think about that. You've never gotten out of the whole Obama duck. | ||
| Hey, Chris Hayes, David Ploose, suck on that. | ||
| Come back tonight and let's answer that question. | ||
| Obama buried the African-Americans. | ||
| They destroyed a third of their wealth. | ||
| Hispanics are almost bad. So don't give me your happy talk and all this. | ||
| We never heard it. This was not on the campaign trail. | ||
| Stop doing the clown show. | ||
| I tell you, let's do it. I'm going to show you where the... | ||
| I'm going to go back and do two things with Cortez. | ||
| I'm bringing Dave Brett in with his analysis. | ||
| Let's do that. Let's do the... Can we hit the two? | ||
| Can we hit the two? And I'm going to introduce Brett. | ||
| Let's roll. Are you shocked at your latest utility bills? | ||
| Well, if you are, you're hardly alone. | ||
| But for millions of Americans, it's an absolute crisis because they are literally having their power shut off. | ||
| Let's look at the numbers in a chalk talk. | ||
| From the Chicago Sun-Times data, last year, January through October, the most recent month we have, 1.5 million Americans had their power shut off. | ||
| How does that compare in context? | ||
| Well, for electricity shutoffs of 29%, Over the prior year for natural gas, up 76 % over the prior year. | ||
| And this stunning number may get even worse soon because prices are spiking. | ||
| For example, in California right now, according to the utility SoCalGas, typical winter heating bill has gone from $130 a month last year to $315 a month this year, a rise of 142%. | ||
| This reality is simply unaffordable for many, many Americans. | ||
| It's a consequence of Biden's war on American energy and the exorbitant borrowing and spending of the Washington Uniparty. | ||
| We're counting on the GOP House to hold the line. | ||
| Patriots. Tragically, massive corporate layoffs. | ||
| They are accelerating, especially in the tech space. | ||
| But one job that's very much in demand? | ||
| Being a repo man. | ||
| Because Americans cannot afford their cars. | ||
| Let's look at the numbers in a chalk talk. | ||
| Last year, 2022, Americans lost $1 trillion in real disposable income. | ||
| That was the worst percentage drop since the Great Depression. | ||
| Making it incredibly hard for Americans to deal with rising interest rates and more expensive loans on things like automobiles. | ||
| Car payments $1,000 a month or higher, that's now 16 % of all auto loans, all-time high. | ||
| For context, three years ago that number was only 6%, which translates into a giant jump in the percentage of Americans who are severely delinquent in their auto loans, meaning they haven't paid in three months. | ||
| We just put in a number of almost 6 % there, which is worse than the levels of the Great Recession of 2008-2009. | ||
| Patriots, these numbers, this economic reality makes it imperative that the House GOP hold the line regarding the debt ceiling. | ||
| Steve, let me get to you. We're going to bring Brad in at the break. | ||
| We're going to take a break right here and bring Dave Brad in because this is about, there's two things. | ||
| And this is all the happy talk and spin you're seeing and watching that Chris Hayes is not just that. | ||
| A lot of the conservative media and what's happening up here in Capitol Hill. | ||
| Basically, there's a depression going on for working class people in their lives. | ||
| And the reason is the underlying real economy, the productive economy, what really creates jobs and value and wealth. | ||
| That is... | ||
| That is dormant right now. It's dead. | ||
| It's a carcass. All they do is juice it up with this deficit spending, and they hit the button over the computer at the Fed and create the fiat money. | ||
| That is over. | ||
| It's the end of the con, the long con. | ||
| All next in The War Room. | ||
| Here's your host, Stephen K. Van. | ||
| Okay. On a day that Hunter Biden's lawyers were all upset, they finally... | ||
| It's called a self-own. | ||
| After two years, they admitted. | ||
| It's not Russian disinformation. | ||
| It's actually mine, after all. | ||
| Right? And they're going up there. I don't know, Delaware and DOJ. These guys are criminals! | ||
| These guys are criminals! Well... | ||
| Bro, strap in, because the House investigations are going to be coming. | ||
| And the word is, immediately after the illegitimate Joe Biden, who's not really president, he's illegitimate, he's going to give his State of the Union. | ||
| I think McCarthy just said, like back in Jefferson in those days, just send it over. | ||
| Send it in writing, and we'll have a clerk read it. | ||
| And I hope that there's appropriate response by the MAGA wing of the Republican Party during this fiasco, the State of the Union, of all his lies and misrepresentation. | ||
| Don't let him lie. Call him out right there. | ||
| And the next day, they're going to start to Hunter Biden. | ||
| This is what I love. Comer and these guys are, I think, on point right now. | ||
| A lot going on behind the scenes. | ||
| We'll break news when we can. | ||
| Dave Brat. By the way, MyPillow.com, promo code WARROOM, the launch of MyPillow 2.0. | ||
| Hey, and I agree with Citizens Free Press. | ||
| You know, Mike Lindell, what he did, he owned Jimmy Kimmel. | ||
| Now, he did it inside the whatever, like the cage, right? | ||
| But I thought he owned him, and the opening monologue was great. | ||
| Mike had over a million or two million hits already. | ||
| This is the way he gets the word out to people who don't watch WARROOM or don't watch Lindell TV. It's a massive, all those ratings, you know, gut-filled these guys crushing. | ||
| He's still got big ratings because it's broadcast. | ||
| MyPillow.com, promo code WARM. You've got to go to that, get the launch of MyPillow 2.0. | ||
| If the original MyPillow was your sleeping companion, this is next level. | ||
| Okay, totally next level in technology. | ||
| Mike's worked on this for a long time. | ||
| Boom, it's out. | ||
| You're going to love it. Buy one, get one free. | ||
| MyPillow.com, promo code WARM. Check it out now. | ||
| Dave Brat, what did you think? | ||
| Did McCarthy have it right about the credit card? | ||
| Because you're going to walk us through where the economy really is, not the fake economy, that we're just spending this money we don't have and burying our children and grandchildren, sir. | ||
| Yeah, I think he had the intent right, but I think he goofed up the metaphor. | ||
| The kid didn't spend too much. | ||
| The parents spent $32 trillion too much. | ||
| Now the next generation's got to pay it off or else the Fed's going to run inflation to pay it off. | ||
| So that does matter. | ||
| Walk us through your charts. | ||
| Walk us through your analysis of where the real economy is, the productive economy. | ||
| Yeah. Yeah. First, I just want to respond to Plouffe for a minute. | ||
| It's always interesting after the left destroys everything, right? | ||
| After the Marxists I destroy China and Russia and every civilization they've run. | ||
| It's incumbent on the Judeo-Christian principles to come in and clean up the mess, and usually those people do it humbly. | ||
| And so, you know, I don't have to go through and recite the, you know, Magna Carta, Renaissance, Reformation, Enlightenment, all the great things we did. | ||
| The Puritans founded Harvard, whose motto was truth for Christ and church. | ||
| If you said that today at Harvard, you'd probably get booted off campus. | ||
| But the point of all that is the Christians in their kindness gave over Harvard and Yale and Princeton and all the great schools you can name, all of them, were all Christian founded, gave them to secular society as a gift, not to force religion, right? We don't believe religion should be forced. | ||
| And so, ploof, what are we aiming at? | ||
| We're aiming to restore the greatness and the decency and the character of the Judeo-Christian West. | ||
| That's what we're aiming at. | ||
| But I'll be polite, and I'll just run through some numbers here. | ||
| We made a secular handshake. | ||
| The seminaries went across the tracks. | ||
| We gave you the secular world, the universities. | ||
| But unfortunately, you goofed it all up. | ||
| Your economists aren't making any sense right now. | ||
| And so I'll just go over the first chart we got. | ||
| Hold on. Hang on. Hang on. | ||
| No, no. Hang on. Hang on. Because I understand from Liberty and you always believe that, you know, the economy because of the spiritual war. | ||
| But Cortez, I didn't realize we're going to trigger Brat so much. | ||
| I thought we were going to get the numbers and get into the details. | ||
| I mean, he's been sitting there seething, right? | ||
| Seething. We created Brown, we created Dartmouth, we created Harvard and Yale, and we gave them over, and you end up with guys like Obama and Ploof, Chris Hayes. | ||
| That's what you get for your effort. | ||
| Speaking of Obama and his alma mater, Columbia University, I actually just this morning, coincidentally posted this on my social media. | ||
| There was a massive student survey of thousands and thousands of students all over the country, and they asked them about free speech issues. | ||
| And this group ranked 203 universities on the topic of free speech. | ||
| Dead last at 203, Columbia University. | ||
| Ivy League, Columbia, Barack Obama University. | ||
| But Steve, here's also bad news. | ||
| Before we get cocky, either you or I, our alma mater, you went to graduate school, I went to undergrad, Georgetown University, number 200. | ||
| 200 out of 203. | ||
| Almost the very seller when it comes to free speech in American universities. | ||
| Leave it to the modern Jesuits, right? | ||
| By the way, I went there when it was still quasi-Catholic University, Cordes. | ||
| You were at the tail end of that. | ||
| Stop. So, Brett, let me go back to you. | ||
| Now that you got it off your chest, I know you're seething, right? | ||
| I know you're seething. Let's go back to the, let's go back, because you're right, and you make a great point. | ||
| The Bolsheviks and the Soviets destroyed Russia and destroyed the Russian people. | ||
| The Chinese Communist Party are still the butchers and destroyed the Lao Beijing every day. | ||
| It's absolutely correct, and you're seeing it here. | ||
| I just want to duly know before we go, at 203, Columbia University is also the home of the Columbia School of Journalism, right? | ||
| The Journalism Review, the revered thing of speech. | ||
| Hey, baby, hey, I got a thing from Hippocrates. | ||
| A physician, heal thyself. | ||
| Why don't you, at the journalism thing, Columbia, stop telling us about the rest of the country. | ||
| Why don't you get the chart and go from 203, get a one-handle in front of it. | ||
| Let's go to 199. Let's aspire and get out of the twos, right? | ||
| Dave Bratt on the economy, sir. | ||
| Yeah, if the guys in Denver want to put up chart one, this is just to respond. | ||
| Yesterday was the big Federal Reserve Day. | ||
| Some breaking news, he mentioned the term disinflation. | ||
| I think they're getting a little too ahead of their skis. | ||
| But the GDP growth rate, they're talking about 3%. | ||
| And so the average person looking at that going, how in the world can that be? | ||
| So I just want to put it in broader context. | ||
| This is CBO. They're usually a little too optimistic. | ||
| But these are the numbers that came out yesterday. | ||
| If you look at the far right from 2026 to 2031, the long-run trend is we're going to be growing at only 1.5 % GDP growth. | ||
| And then the next chart, why is that? | ||
| And here's your dead carcass of the economy. | ||
| Steve Cortez and EJ just got done putting it very well. | ||
| Capital inputs in intro macro class, we usually just talk about capital as the major cause of economic growth. | ||
| And then when you get a little bit more advanced and you see it there, capital way over to the far right is only going to be growing at 1%. | ||
| And then the most important variable is called total factor productivity. | ||
| That's the free markets, the animal spirits, the entrepreneurship, the innovation, the patents, all of that. | ||
| All of that is only growing over at the far right at 1 % at the end of the year. | ||
| And we've gone over all this with the head of Northwestern, The greatest scholar on productivity is Robert Gordon. | ||
| And productivity has been going down steadily for the past 40 years. | ||
| Productivity down in the United States of America for 40 years. | ||
| So, Mr. Plouffe, in secular terms, that's what we're aiming at. | ||
| Russ Vogt has a budget where every line item is going to be aimed at that, at productivity. | ||
| No pronoun studies, no crazy stuff, no Marxist stuff. | ||
| Just all we want is productivity growth so the Americans can have freedom again. | ||
| Put a pin in it, Cortez, you know. | ||
| This is why what Russ Vogt in the war room, the focus is to make sure any spending It goes to the real economy and to build productivity. | ||
| But let me just pull back for a second. | ||
| Cortez, jump in here on Brett. | ||
| At 1%, Dave and Steve, and at 1.5%, the model doesn't work. | ||
| This is my point. | ||
| Hey, when you're looking at a business model, you go, hey guys, this doesn't work. | ||
| So right away you have to triage. | ||
| You've got to step in. | ||
| Let me just repeat this. | ||
| At these numbers, the real numbers, and of course Brad just tells you, hey, I think they may be a little optimistic. | ||
| This math doesn't work. | ||
| Cortez first and then we'll go back to Brad. | ||
| Just on the first chart. You're exactly right. | ||
| And I think, to use an analogy, let's put it in terms of personal finance. | ||
| Let's say you have an adjustable rate mortgage, but your real earnings, which is the case for most Americans, your real earnings are going down while your debt service costs are rising dramatically. | ||
| Well, you have to increase those earnings significantly, or you need to somehow in your life massively cut your expenses, or guess what? | ||
| You're going to get foreclosed out of that home. | ||
| That is the reality that is faced nationally. | ||
| That sort of micro reality is the macro reality that is faced nationally by the United States. | ||
| Because again, we've had the luxury in recent years of artificially low interest rates. | ||
| And the profligate spending that flowed out of that era Set the table for the current terrible tough decisions. | ||
| Look, there are no good options here. | ||
| Let's just be brutally honest about this. | ||
| Let's be adults. There are no good options right now. | ||
| But as adults and as inheritors of the greatest republic and the greatest economy in the history of the world, we have to confront these tough decisions. | ||
| And we have to be dispassionate and honest with the American people. | ||
| Chris Hayes isn't honest. Joe Biden isn't. | ||
| Jerome Powell the Fed is not. | ||
| We need to be. | ||
|
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It's not popular. | |
| Not just no good options. | ||
| There's no easy decisions here. | ||
| That's why the MAGA has to be the chairman of the creditors committee. | ||
| Creditors committee are not garden parties. | ||
| They're not fun. But to get back to the animal spirits and the productivity, because right there, you said something that was months ago. | ||
| About a year ago, you said the bond market, you know, you see in the bond market numbers, they're not buying off in the Biden plan. | ||
| Bratch has given you what the Biden plan is, the reality of the math, and that's why the bond market goes, they do not salute. | ||
| They do not support this. | ||
| Correct, Brother Cortez? | ||
| No, exactly correct. And think of the bond market, to use another analogy, think of the bond market essentially as the bank, right, that is loaning money to the United States. | ||
| And the bond market was willing to loan money to the U.S. government at incredibly low rates in a past era. | ||
| That is no longer the case. | ||
| The bank is saying you have a broken business model, so if we're going to continue to loan you money, we want much higher interest rates. | ||
| So it's an entirely new interest rate regime. | ||
| Again, we can't just wring our hands about it. | ||
| The gnashing of teeth doesn't pay the bills. | ||
| This is the reality we face. | ||
| Let's be adults about it. | ||
| And let's make significant spending cuts, significant fiscal decisions, which involve sacrifices, clearly. | ||
| And one of those sacrifices on the right has to be we can't just in a knee-jerk, reflexive way say we are always at all times going to raise defense spending. | ||
| No, defense spending needs to be prioritized. | ||
| How can we actually get safer but spend less, right? | ||
| That kind of analysis is what needs to happen. | ||
| And McCarthy, I think, does hurt himself by talking about this waste, fraud, and abuse. | ||
| Okay, yes, they're all that. | ||
| But that's something they throw out there to take you off the ball. | ||
| That's noise, not signal, right? | ||
| You need, this gets down like in defense spending, they cut all these. | ||
| You've got to take out the commitments, right? | ||
| Once you start backing off the commitments, then all of a sudden you can get to real numbers. | ||
| You can get to real cuts. We can't do everything. | ||
| All these marginal programs, all these social marginal programs are all going to be up on the chopping block. | ||
| The bloated defense budget, it's bloated. | ||
| You want to take down the CCP, you want to defend Taiwan? | ||
| Hey, I can cut $100 billion and put the CCP out of business in 100 days. | ||
| You have to have fully integrated, unrestricted warfare, economics, capital markets, technology, cyber, all of it. | ||
| We can't spend a trillion dollars and be looking for every kinetic war in the world. | ||
| It can't happen. And the first cut has got to be Ukraine. | ||
| How about this for Ukraine? Zero. | ||
| Let the guys in Davos, see how pretty Davos was, how nice it was? | ||
| Let the Swiss. Write me a big check. | ||
| The Swiss, write a big check. | ||
| You're so worried about Austria, those beautiful ski towns, write a big check. | ||
| Italy, big check. | ||
| France, big check. | ||
| Germany, big check. Let the Americans get health care. | ||
| You write the big checks for Ukraine. | ||
| You're so interested in Ukraine, you write the $100 billion. | ||
| Give our $100 billion back. | ||
| Okay? Short break. | ||
|
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| Okay, make sure you see us at CPAC. Go to CPAC.org slash war room. | ||
| We've got a special deal with those guys. | ||
| $47 off your general mission ticket. | ||
| We're going to be doing the live broadcast like we did at Turning Point and we did at CPAC Dallas. | ||
| You, the audience, are going to be part of it. | ||
| You're going to love it. And we've got a bunch of stuff cooked up, so we're going to have the whole crew there. | ||
| All of our contributors, and we're also going to have all the entire production staff you get to meet. | ||
| So cpac.org slash war room. | ||
| Go there today. President Trump's already committed. | ||
| Other people committing every day will be making those announcements. | ||
| I think Nikki Haley's going to be there. | ||
| Got to see that speech, right? | ||
| Steve Cortez? By the way, the greatest line ever. | ||
| I give the old Milton, she's ambitious as Lucifer, and Cortez comes in even less principled. | ||
| It was so good, I put it up on Getter last night on an article about Nikki. | ||
| Let's go back to Brett. | ||
| Brett, talk to me about the underlying real economy of the United States of America, sir. | ||
| Yeah, well, you went off on the animal spirits a little bit and cannot overemphasize that piece. | ||
| It's totally missing, right? | ||
| Some great scholars, Deidre McCloskey, if people love economics, go get her volume called Bourgeois Dignity, goes over competing views of what caused growth. | ||
| And her thesis is Modern Growth started when we finally started to call business morally good. | ||
| You can go back to Max Weber and the Protestant ethic. | ||
| People got out of bed every day with a purpose in life. | ||
| I think that's in one of your talks. | ||
| What's the purpose? | ||
| What is your task? | ||
| If you don't wake up with a task, it's hard to have those animal spirits effective. | ||
| The kids these days are being taught everything under the sun except why you're on the planet. | ||
| That does matter. | ||
| I went over the economic growth figures, the investment figures, The total factor of productivity figures all down. | ||
| Why does this matter? | ||
| The next slide, Denver, a bunch of bouncing balls on there. | ||
| In macro intro, you'll learn a thing called the rule of 72. | ||
| This chart shows it. | ||
| Just take that number 72. | ||
| If you're growing at 1%, GDP grows at 1%, it will take you 72 years to double your income as a person or as a country. | ||
| So up at the top, if you're growing at 2 % GDP, it will take you 35, right? | ||
| 70 divided by 2 is 35 years to double your income, to go from 56 grand to 100 grand a year. | ||
| So what we're talking about is significant, and these are in real terms, right? | ||
| So that's a real doubling of your welfare. | ||
| And then what people may not get is just 1 % differences make a huge difference in economic growth. | ||
| So I just got done showing you the charts. | ||
| They're all up at Brat Economics on Getter. | ||
| With the 1 % GDP growth and then the consequences and the productivity falling. | ||
| But if you go from 2 % on that chart to 3%, you go from doubling your income in 35 years to doubling it in only 25 years and so forth. | ||
| So the consequences of these choices we're making and the budget we're having and the debt ceiling, the media is going to spin it as creating chaos. | ||
| We're not creating chaos. | ||
| We're creating rationality in economics again. | ||
| Very key that we get confident. | ||
| We are not creating chaos. | ||
| We are the adults in the room that are asking for the receipts. | ||
| We're asking for your economic growth projections and how you get there, given the current Biden White House budget. | ||
| And then we'll present the Russ vote and show you how we achieve both better outcomes for the American people and economic growth for your children and a plausible way of paying off the debt. | ||
| Yeah. This is why Russ's whole 10 years to get to a balanced budget, which I think it ought to be harder because I can do bigger cuts quicker. | ||
| But we're Mack the knife here. | ||
| Remember, you're in the war room. | ||
| So we're in the White House. | ||
| I was a hardliner on this and hardliner, quite frankly, on tax increases for the oligarchs. | ||
| That's the thing. We're reaching out to Reich to get him on here. | ||
| I know they're all going to melt down now. | ||
| They're all going to vapor lock. No. | ||
| We have a concentration of wealth in this nation. | ||
| I'm not talking about rich people. | ||
| I'm not talking about wealthy people. | ||
| We want everybody to aspire to create value and to have wealth if that's what they aspire to. | ||
| I'm talking about oligarchs, the founders in this country. | ||
| We fought a revolution. | ||
| To get away from the worthless landed aristocracy of the British Empire plus the British East India Company in these new monopolies with oligarchs that you could see was happening. | ||
| That's what happened in India. We fought a revolution led by our smuggler John Hancock and Sam Adams and a couple of three guys that like playing outside the guardrails. | ||
| The revolutionary generation, they had a couple of three bandits in there that said, hey, I think I got a better idea. | ||
| We're building a new nation here. | ||
| Go screw yourself. We're not going to play by your rules. | ||
| We're not going to play your game. Right now, we're back into an oligarchy. | ||
| We've allowed it in progressive presidents. | ||
| You know, David Flew, please come forward and make the argument of why you were the running dog, right, for Wall Street and papered up with all your pretty speeches, all the most progressive under Obama that led to the greatest concentration of wealth in the nation's history. | ||
| Bernie Sanders, why don't you deal with that first before you start wandering around talking, give me a minimum wage of $15 an hour, right? | ||
| That's all pro wrestling. That's to take your eye off reality. | ||
| And no, I think, hey, remember, all the oligarchs are either hard-left progressives, globalists, uniparty, or even Republican. | ||
| They all hate MAGA. It's the Ken Griffins of the world. | ||
| Do we owe them anything? | ||
| No, we don't owe them anything. | ||
| Zero. So no, we're for defense cuts. | ||
| And look, I gave, what, seven and a half years of my life to service this country. | ||
| My daughter also, which we should do. | ||
| We believe as citizens, you owe that to your nation. | ||
| But we can see the defense, and it's not waste, fraud, and abuse. | ||
| Stop that. That's ridiculous. This is stupid hour. | ||
| This is not about waste, fraud, and abuse. | ||
| Yes, you ought to cut that out all the time, right, as a given. | ||
| This is about systemically going through and restructuring this. | ||
| Dave Bratt, once again, where do people go to get your analysis? | ||
| Because you're putting up stuff that people got to see every day. | ||
| Yeah, I've been posting a ton, Brat Economics on Getter, and just you've been covering the war very well, just so people understand that. | ||
| Of course, war spending and the defense contractors and oligarchs in that realm, of course, will contribute to economic growth in the short run. | ||
| But all of those resources are terribly misplaced, terribly misplaced in terms of producing productivity for the next generation. | ||
| Beat our swords into plowshares, as the Bible tells us. | ||
| Dave Brett, I know Dave Brett's going to now go say, as an evangelical Christian, Dave Brett's going to now say a rosary, because Steve Bannon mentioned tax cuts. | ||
| Tax increases. | ||
| Tax increases on the wealthy while he was on Brett. | ||
| We love you, brother. Cortez is going to stick around. |
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