March 13, 2023 - Bannon's War Room
48:51
Participants
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| Speaker | Time | Text |
|---|---|---|
| This is the primal scream of a dying regime. | ||
|
unidentified
|
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 line? | ||
| MAGA Media. I wish in my soul, I wish that any of these people had a conscience. | ||
|
unidentified
|
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
|
War Room, here's your host, Stephen K. Bannon. | |
| Thanks for joining us. | ||
| I don't see that coalition coming together. | ||
| I don't see Roe Kahana, as much as he talks about economic patriotism, putting that coalition together to have a bailout of East Palestine Ohio. | ||
| See, you guys are going to replay 2008 and 2009 where Louis Garment, you had a decision. | ||
| Do we step in and have intervention and try to save this corrupt system by infusing it with taxpayer cash to bail out the elites? | ||
| Or do we let the contagion spread and let the devil catch the hindmost? | ||
| And the problem is when you're looking into the abyss, it's a very tough call for you guys to make because they're going to sit there and go, right now we're looking into an open pit. | ||
| You have no idea how deep this could go, how the American financial system could collapse, how the international financial system could collapse. | ||
| So you better vote to bail it out with taxpayer cash. | ||
| So you're going to take it from people making $45,000 a year to bail out the wealthiest people on earth, and they're going to put a gun to your head. | ||
| And you're going to say, okay, if you vote no and let capitalism take its path, this contagion will spread. | ||
| Is it a contagion or chemotherapy? | ||
| That's what I'm trying to figure out. | ||
|
unidentified
|
Are you saying let SVB fail? | |
| I think you have to, by the way. | ||
| Until you get a bailout of East Palestine, Ohio, screw, screw. | ||
| Look, those people are the guys that mock and ridicule MAGA every day of the week. | ||
| This is the elite. It's an elite bank. | ||
| The, I think, most elite bank in the country. | ||
| It only has a certain clientele of only the best of these high-tech companies. | ||
| It's all the venture capitalists. | ||
| Politically, they all hate us. | ||
| They mock and ridicule the central part of this country, the coastal elites. | ||
| They've got plenty of cash, plenty of capital. | ||
| Let them go bail themselves out. | ||
| Physician, heal thyself. | ||
| Do not come to us. | ||
| When you have not, you sit there and you mock and ridicule East Palestine. | ||
| You have some bogus hearing where nothing gets settled, nothing gets sorted. | ||
| Until East Palestine gets a bailout, there shouldn't be one frickin' penny given to anything in Silicon Valley. | ||
|
unidentified
|
I agree, and it feels similar to the energy I felt when you guys stood up in the speaker's vote. | |
| Yes. Someone finally saying to the machine, you can't just steamroll us over and over and over. | ||
| It's the same play. | ||
| It's 2009. It's the bailout. | ||
| It is. | ||
| China drove the COVID catastrophe. It's exactly what's going to happen. | ||
|
unidentified
|
I don't know that my... To what extent... | |
| If you go back to town halls in your district, Next weekend. | ||
| We'll say they've come to us with SVB and we're going to lose. | ||
| Here's what we're going to lose. The contagion is going to spread to other banks. | ||
| Number two, we're going to lose all these great companies and we're going to lose all our innovation for a decade. | ||
| That's what we're saying. We're going to lose all our innovation for a decade. | ||
| What is your district going to tell you? | ||
|
unidentified
|
If an earthquake hits Silicon Valley, I'm not sure that my constituents would vote to send FEMA. I wonder what you make of the Treasury Secretary's remarks. | |
| I know you've been in contact with the White House, with Treasury, and with FDIC. Great respect for Secretary Yellen, but I think we need to have more clarity and greater strength in what Treasury is saying. | ||
| First, the principle needs to be that all depositors will be protected and have full access to their accounts Monday morning. | ||
| All depositors, meaning those with accounts bigger than $250,000, which is the cutoff for insurance right now? | ||
| Yes. All of them. There's precedent for this. | ||
| Chair Powell, when he was at Treasury in 1991, the Bank of New England collapsed. | ||
| And Chair Powell said the Treasury coordinated with FDIC and with the Fed, and they insured every depositor then. | ||
| And why did they do it? They didn't want a regional run on the banks. | ||
| Here's what I'm hearing from people in my constituency. | ||
| They are getting notes to pull out of regional banks, and all of this will be consolidated in the top four banks. | ||
| We don't want that as a nation, especially if you're progressive. | ||
| The other thing is the payroll companies that are involved. | ||
| Some of them have 400,000 folks. | ||
| They're not going to be able to meet payroll if they don't have access to deposits. | ||
| Your counterpart in the United Kingdom has said that the government there has ruled out a bailout of the UK arm of Silicon Valley Bank. | ||
| Have you also ruled out that kind of government intervention? | ||
| Well, let me be clear that during the financial crisis, there were investors and owners of systemic large banks that were bailed out and were certainly not And the reforms that have been put in place means that we're not going to do that again. | ||
| But we are concerned about depositors and are focused on trying to meet their needs. | ||
|
unidentified
|
Would you be open to a foreign bank coming in as a white knight to help stabilize the situation with Silicon Valley Bank? | |
| So this is really a decision for the FDIC as it decides on what the best course is to resolve this firm. | ||
| And I'm sure they're considering a wide range of available options that would include acquisitions. | ||
| Here are the highlights. First, All customers who had deposits in these banks can rest assured they'll be protected and they'll have access to their money as of today. | ||
| That includes small businesses across the country that bank there and need to make payroll, pay their bills, and stay open for business. | ||
| This is an important point. | ||
| No losses will be borne by the taxpayers. | ||
| Let me repeat that. No losses will be borne by the taxpayers. | ||
| Instead, the money will come from the fees that banks pay into the deposit insurance fund. | ||
| Because of the actions of that Because of the actions that our regulators have already taken, every American should feel confident that their deposits will be there if and when they need them. | ||
| Second, the management of these banks will be fired. | ||
| If the bank is taken over by FDIC, the people... | ||
|
unidentified
|
Okay, that's a bald-faced lie. | |
| You're bailing this out. I'm just going to be brutally frank. | ||
| And there's enough cash. | ||
| These depositors are not innocent victims. | ||
| This bank is like a fraternity or sorority house with the worst people in the country who mock and ridicule and hate you and detest you every second of their lives. | ||
| Deplatform you, debank you, all of it. | ||
| Okay? And you are bailing them out. | ||
| First off, number one. | ||
| Remember, they're talking about, we can't make payroll, we can't have operations. | ||
| 99.9999999 % of the depositors, these companies, all have financial sponsors called venture capitalists. | ||
| The venture capitalists right now could give them a line of credit To make payroll and pay their operations. | ||
| The reason they're not doing it, they don't want further dilution. | ||
| And of course, it won't be great return on the venture capitalist capital. | ||
| Okay? This is what the game is. | ||
| They're coming to you. And this thing about the FDIC, first off, it's only about $100 billion in the FDIC insurance. | ||
| It also comes from fees from other banks that you are paying the depositors and shareholders of the other banks. | ||
| This is an indirect tax on you. | ||
| I don't actually say a direct tax on you, but I'll give an indirect tax on you. | ||
| So Biden, the American people, are paying to bail out the worst scumbags. | ||
| And by the way, they got all their sweetheart deal mortgages, all these venture, they're called venture loans. | ||
| Venture loans is they just don't want to put in more hard equity because of dilution. | ||
| They want to own a bigger, higher percentage of the company. | ||
| This is an open scam. | ||
| And you are paying for it in any congressman. | ||
| The opening thing, it was Friday night at 9 o'clock over in the Capitol. | ||
| I was doing the Tim Pool show. I told you exactly what was going to happen at 9.35 p.m. | ||
| Eastern Standard Time on Friday night. | ||
| And exactly what happened has happened. | ||
| And you need Kevin McCarthy and you need Elise Stefanik and you need McHenry, the head of the financial ring, every member of Congress that is Republican or turf them out. | ||
| There is plenty of money to save these depositors. | ||
| It comes from their financial sponsors. | ||
| They can make payroll today. | ||
| They can make operations today. | ||
| They just have to get a line of credit, not from the American people, but they have to get it from their venture capitalists. | ||
| This is 2008. | ||
| It's even worse than 2008. | ||
| Because now, and I can't say it's a Greek tragedy, you are bailing out the very people that are trying to destroy this country and trying to destroy you. | ||
| Remember that. Let me repeat. | ||
| You are bailing out with your money the exact people that detest you. | ||
| And they're going to say, oh, we're going to lose innovation for 10 years. | ||
| They have the money. | ||
| The venture capitalists are all part of this and all kicked off the run. | ||
| It was a venture cap. These SOBs took their money out beforehand as soon as they knew this thing was jiggy, right? | ||
| And then left you to pick up the test and we're going to get into Biden's as Cortez and Navarro and I've been talking about for over a year. | ||
| The Biden administration policies caused this 1000 % direct from the beginning of their policies to today, both on inflation, both in the bond market getting crushed on what they've done. | ||
| And he put a $6.8 trillion budget up in your grill. | ||
| And we had, no offense, the House Freedom Caucus on Friday, not good enough. | ||
| The homework assignment got a C+. We need to get serious, and we need to go on offense, and we need not to back down one inch, because this is 2008 all over. | ||
| I told you you're seeing a collapse of the neoliberal neocon system. | ||
| On the border, you've got riots. | ||
| We're going to go to the border live at 11 o'clock Eastern Daylight Time here. | ||
| You've got a massive riot. | ||
| You've got a surge at the southern border. | ||
| They're coming across whether you want them here or not. | ||
| Up in your face. You got complete collapse of our southern border on an absolute invasion of our country. | ||
| You got the CCP everywhere. | ||
| You got Ukraine, billions of dollars. | ||
| Steve Cortez, by the way, it's Black Monday, 13 March, in the year of our lure, 2033. | ||
| Cortez, Janet Yellen, she's saying it's FDIC, it's the Treasury Department at the end of the day. | ||
| The Treasury and the head of the Fed. | ||
| How can she focus on this when she's in Kiev, sir? | ||
| Yeah. By the way, Janet Yellen, you know, complete lie to try to fool the American people who know better, claiming that this isn't a bailout when it is 100 percent a bailout. | ||
| The same thing from Joe Biden, who got to the podium for a total of three minutes today, lied to the American people, took no questions, and then sauntered, shuffled off the stage because he had just done what his bosses on the West Coast Gavin Newsom, the governor of California and the venture capitalists of Silicon Valley, he had just done what he was directed to do, which is back up these people. | ||
| And Steve, you are exactly correct. | ||
| I thought it was so shameful. | ||
| All weekend long, these venture capitalists were taking to media, taking to social media, and practically begging Regular Americans, hard-working, working-class laborers of America for a bailout when they are some of the wealthiest, most powerful people in America, | ||
| when they themselves have the cash to backstop any cash flow operations in the near term, but instead They're telling a single working mom in the Central Valley of California or an iron worker in the Midwest, you are going to be stuck with this. | ||
| You didn't make this mess, but you're going to clean it up. | ||
| You weren't invited to the party, but you're going to be stuck with the tab. | ||
| Okay, that is what is happening right now. | ||
| And also, when they try to say, Yellen and Biden, that the taxpayer is not on the hook for this, the taxpayer is 100 % on the hook. | ||
| And here's the other aspect in terms of how we are going to pay a price for this, a massive price that will last Not just for weeks or months, but for years, is via inflation, Steve. | ||
| Inflation is already out of control. | ||
| And what we now have, because of this bank failure, is we have a Fed that is already dialing back massively its intention to fight that inflation. | ||
| So Powell, Fed Chair Powell, now has effectively his excuse. | ||
| He has the beard. He's going to hide behind it and say, we can't raise rates. | ||
| We can't fight inflation anymore because the banking sector is too vulnerable. | ||
| Therefore, inflation, Steve, is going to stay incredibly elevated and high at levels that working class people simply cannot afford in our society. | ||
| What happened, the worst aspect, there's many terrible aspects, but the worst fallout from this weekend and from these events, Steve, mark my words, is going to be sustained, systemic, high inflation that is crushing working class people in this country. | ||
| By the way, Charles Schwab, halter trader shortly. | ||
| I think at one point he's down 19%. | ||
| Republic Bank is on the ropes. | ||
| Your house number is 202-224-3121. | ||
| The Senate is 202-225-3121. | ||
| Light. The phone lines up. | ||
| Light on. Tell them, if you don't take a stand today, I will work. | ||
| 24-7 to turf you out of your seat. | ||
| No excuses. This is black or white. | ||
| No excuses. We're going to come back in a second and walk through how you're getting screwed. | ||
| All in the war room. | ||
| Stephen K. Babb. | ||
|
unidentified
|
David, you know they weren't really clear about who has forbearance. | |
| No, but the availability of these facilities where you can pledge securities at par and get the money and the other liquidity facilities, so to speak, would seem to do enough to reassure people. | ||
| They didn't solve the duration problem. | ||
| They didn't solve the mismatch between assets and liability. | ||
| To Schwab's point in its own press release, and again, this is the case, right? | ||
| If you have something in the health maturity portfolio, those securities will mature at par, and I'm quoting here from Schwab, and given our significant access to other sources of liquidity, very little chance that we'd need to sell them prior to maturity. | ||
| Now, that is what Schwab is saying. | ||
| The stock has come back a bit from when they issued this press release, let's call it 20. | ||
| We're going to play this more. Listen, the whole reason we do this show is to make sure that working class people in MAGA throughout the country and the world get the same level of sophistication and analysis on geopolitics, politics, capital markets, money. Because you're the decision makers, ultimately. | ||
| And you've been getting screwed for, I don't know, thousands of years, but let's say specifically the last couple of decades. | ||
| All you need is the information. | ||
| Once you get the information, you've got to use your agency. | ||
| But I am very proud of the fact that this show has been ahead of this for years before these corporate mouthpieces by the dip, right? | ||
| The liars on CNBC and quite frankly, Fox Business has been giving you nothing but happy talk. | ||
| And of course, the MSNBC and the political in the morning. | ||
| Joe, do you want to touch this this morning with the barge pole? | ||
|
unidentified
|
They're so nervous about the political fall out of this. | |
| We are here to empower you. | ||
| We are here to empower you. | ||
| This is absolutely outrageous. | ||
| There's 600, as we talked last week, the uninsured deposits plus the losses in the portfolio, the unrealized losses in the portfolios. | ||
| The unrealized losses on the portfolios are over $600 billion of just what we know about. | ||
| Remember, normally what happens in the bank, what do we say, Cortez, at the beginning on the show on Friday? | ||
| We said Silicon Valley Bank won't make it through the day. | ||
| I never in a million years thought a California regulator was jumping in front of the feds to shut down a federally chartered bank. | ||
| Right? Never saw it. | ||
| Didn't see that one coming. | ||
| Right? Didn't see that one coming. | ||
| Why? The Biden administration has been hiding this and didn't want to take action before the weekend. | ||
| They wanted to find a buyer. Guess what? | ||
| No buyers. So they gave it to the taxpayers. | ||
| They couldn't find a buyer. They couldn't find PNC, Hong Kong, Shanghai Bank, JP Morgan. | ||
| Nobody want to touch this into the bar score because they don't know what's in here. | ||
| It could blow up on you. | ||
| This bank has been insolvent since the fourth quarter. | ||
| This is 1,000 % on the Biden regime and these incompetents like that stupid old grandmother they got up there yelling, whose hapless ought to be fired today, shall be brought before the House and Senate and impeached immediately. | ||
| This bank's been insolvent since last quarter, and they've been selling illegal securities since then. | ||
| The leverage ratio on this bank is 185 to 1. | ||
| A bank's leverage should be, what, I don't know, 3 to 4 to 1, maybe 5 to 1? | ||
| During the financial crisis meltdown, the investment banks should never get above leverage of 8 to 1. | ||
| My beloved Goldman Sachs were 20 to 1. | ||
| That's why you had the implosion. | ||
| You had a bank that had a leverage ratio of 185 to 1. | ||
| Where were the regulators? | ||
| Where was Treasury? | ||
| Where was FDIC? Where was the Federal Reserve? | ||
| And where was that hapless old man Joe Biden and sit up there for three minutes and yammer on? | ||
| It's not a thing, no. They know how radioactive it is, and it is our duty, our obligation to our children and our grandchildren and to yourselves. | ||
| And if you're a millennial under 35 years old, if you're just going to sit there And say, oh no, I'll be a social justice warrior. | ||
| Then guess what? You deserve to be a Russian serf because you're going to be a Russian serf. | ||
| And all these woke folks in Silicon Valley, tell me how bad this bank is. | ||
| This is not even a bank. It's a hedge fund. | ||
| It's the cool kids' table in high school. | ||
| It's the cool kids' table in high school. | ||
| And we're bailing them out? | ||
| Screw them! They got all their venture capitals, like David Sachs and Ackerman and all these guys over the way. | ||
| By the way, Sachs, you're all in. | ||
| The podcast is juvenile. | ||
| You guys sound like nine-year-olds. | ||
| And no offense, Peter Thiel, I don't know, Peter, what material non-public information did you have when you took all your money and all your venture capital funds out? | ||
| What material non-public information did you have and then to cover your tracks came out and said, hey, I think everybody ought to take their, after your money was out, hey, I think everybody ought to take all their money out of SVB and initiated the run. | ||
| It didn't cause it, but it initiated it. | ||
| Steve Cortez. And these very people, Steve, this is also important, and I put this in context in a new article that's up on my substack about Biden bonds and the bank bailouts, where I try to explain in layman terms exactly what happened to Silicon Valley Bank and what the risks are for other banks. | ||
| But I mentioned there, because I think this is also critical, this same cast of characters, okay? | ||
| oligarchs of Silicon Valley and these firms. | ||
| Let's remember, why were they so flush with cash to put such massive deposits into SVP? It's because the lockdowns 2020 and 2021 were nirvana for big tech, because they forced Americans, they and politicians forced Americans to live lives on screens, to only engage in online shopping. | ||
| The world was never better. | ||
| for Amazon and Google and Microsoft than the lockdowns, okay? | ||
| And not coincidentally, Steve, those very same tech firms, they helped inflict the tyranny of the lockdowns by censoring and diminishing any alternative voices about the lockdowns, any criticism of the lockdowns, right, was diminished. | ||
| I myself was suspended several times, for example, for questioning the efficacy of masks, even though I was 100 % right. | ||
| These same people and firms that inflicted the lockdowns, that benefited massively from the lockdowns, they now face a very different economy. | ||
| They face Joe Biden's economy with inflation out of control because their preferred and anointed leader, he's not doing so well at managing the economy. | ||
| So now they're over a barrel. | ||
| 150,000 tech workers have been laid off just since the beginning of 2022. | ||
| The industry is in turmoil. | ||
| And therefore, they need their cash. | ||
| Massive withdrawals coming out of SVB. And the taxpayer is supposed to be stuck with the bill? | ||
| Hardworking, regular Americans, the very people who suffered from big tech, who were the victims of the tyranny of big tech, we are now supposed to bail out big tech? | ||
| No. No thank you. | ||
| And by the way, it's not just taxpayers. | ||
| And deplorables who are saying no thank you. | ||
| It's also investors, Steve. | ||
| You mentioned the stock market volatility. | ||
| Right now, as we speak today, the regional bank ETF, the KRE, it is down 16 % for the day. | ||
| That's a chart of the KRE going back a year. | ||
| Off of the highs of just a year ago, we are down 40 % off of the highs of just a year ago, down 16 % on the day for the KRE, which again, that is an ETF, an exchange-traded fund, where you get all those regional banks In one ticker. | ||
| So investors are not waiting to ask questions later. | ||
| They are simply dumping these banks because they know that while other banks don't have the peculiar problems of SVB, its concentration in tech, they do have similar bond holdings. | ||
| And why are these bond holdings getting destroyed? | ||
| They're getting destroyed because of Joe Biden, because of what he's doing to inflation. | ||
| 2022 was the worst year for bonds, for Treasury bonds, in all of American history and data going back a century. | ||
| It was literally the worst year for capital markets ever because you had stocks and bonds get killed at the same time. | ||
| And Steve, as we've been shouting about on this show for a very long time, the bond market matters much more. | ||
| To regular folks than the stock market does. | ||
| And this is exhibit A of what bond market pain means in the real world. | ||
| A massive bank failure and a lot of worries about more bank failures to come. | ||
| And the deplorables, you're caught holding the bag on this. | ||
| You are financially on the hook. | ||
| Because the government securities they bought are totally underwater. | ||
| Right? They're totally underwater. | ||
| Because of inflation. Exactly. | ||
| Because of inflation. | ||
| Okay, elections have consequences. | ||
| Stolen elections have catastrophic consequences. | ||
| I hope the nation now is going to embrace the catastrophic consequence that is upon you. | ||
| Because these are Biden bonds and these are Biden banks, right? | ||
| He's nothing but Hoover. | ||
| He's Herbert Hoover. | ||
| These are Biden banks holding Biden bonds. | ||
| And it is all going to sink. | ||
| And here's what they're going to do. | ||
| Instead of going to the culprits, the people that knew this and took all these, remember these venture-back loans, venture-back loans, this is all just a scam so they don't take dilution. | ||
| They take a risk here so they don't take dilution. | ||
| They shouldn't be lending money to a thing that's ten guys in an algorithm and it's going to burn cash for five years. | ||
| It's a unicorn. It's going to be worth two trillion dollars. | ||
| It's going to be worth five billion dollars. | ||
| They want all the upsides. We've socialized the downside. | ||
| We've mitigated the risk on the downside on your shoulders, on the shoulders of the deplorables, on the shoulders of MAGA. Just like before, you take all the downside, they get all the upside. | ||
| You don't even get a tip. | ||
| You don't even get a tip. Right now, as we speak, the venture capital firms that have every depositors, they own these depositors. | ||
| Because they're the VCs. | ||
| They have more than enough money to make payroll. | ||
| I don't want to hear the whining, we're not going to be able to make payroll. | ||
| You have the money to make payroll. | ||
| You have the money to fund operations. | ||
| Because operations is a bunch of guys coming in, a bunch of men and women coming in, are working from home with their mask on, right? | ||
| Because you're totally woke. | ||
| No, you have all the money. | ||
| Extend a credit line to your company and let them pay for the operations and pay salaries. | ||
| And we're all good. Yes. | ||
| Management is going to get diluted. | ||
| Sorry, not sorry. You're going to have terrible, worse returns because you can't scam the system. | ||
| Sorry, not sorry. | ||
| You're not going to be able to raise another big fund. | ||
| You're not going to be able to go to the master's. | ||
| In April, right? | ||
| You're not going to go to the wine country? | ||
| Screw you! Let me do this in a more sophisticated way. | ||
| Screw you! | ||
| Okay? This is outrageous. | ||
| It's all a lie. And the Republicans are sitting up there in the mumble tank. | ||
| They had a conference call last night. | ||
| They should have been up in front of the mic this morning saying, under no circumstances will we let this happen. | ||
| And I don't want to hear about congressional hearings and all that crap. | ||
| We're going to hold management accountable. | ||
| Of course. And management took their bonuses. | ||
| I got all that. But that's noise, not signal. | ||
| Signal is that these are the big dogs that run this country. | ||
| And they're always coming to you for a bailout. | ||
| These super sophisticated venture, Ackerman and Sachs and all these sophisticated guys, they sound like seven-year-old boys. | ||
| I'm in trouble. Mom and Dad, can you please bail me out? | ||
| Can you please help me? The bullies are picking on me. | ||
|
unidentified
|
Screw you. | |
| Can I be more subtle? | ||
| Screw you. | ||
| You're not going to screw the American people. | ||
| If we roll over for this, we'll roll over for anything. | ||
| Short break. Cortez on the other side. | ||
| Only in The War Room. | ||
|
unidentified
|
When there's no more, let's take down the CCP! | |
| Host, Stephen K. Bann Of course, Larry Summers sitting there saying it's not time for lectures on moral hazard. | ||
| Okay, we're not going to give you a lecture on moral hazard. | ||
| Here's what we're going to say. Screw you. | ||
| We're not doing this. Don't need a lecture on moral hazard. | ||
| This is not even about moral hazard. | ||
| It doesn't even rise to the level of moral hazard. | ||
| These are the worst people on earth. | ||
| They've tried to destroy this country. | ||
| This is the open borders crowd. | ||
| This is the woke crowd. | ||
| This is the groomer crowd, the LGBTQ, all of it crowd, right, that hate you, that hate everything you stand for, that support the invasion of the southern border, all of it. | ||
| And they're coming to you for a bailout. | ||
| No, impossible. | ||
| Not going to happen because they have plenty of money. | ||
| This is the scam. They have all the cash in the world. | ||
| Steve, but this gets back. | ||
| I want to make sure people do not get your eyes off the fact that this is... | ||
| Can I get my clock right there? | ||
| Thank you, sir. This all goes back to this illegitimate regime, their economic policies. | ||
| We cannot detach the economic policies and capital markets' results Of this illegitimate regime and the collaborationists, the Republican senator, you call your senators, anybody that voted for any of this stuff, Build Back Better, the infrastructure bill, anybody that voted for all the compromises, the people that voted for. | ||
| The continued resolution, the omnibus bill, every senator, all 17 or 18 of those Republicans, they're all just as guilty because they're collaborationists. | ||
| Just like the people that collaborated with the Nazis, these are collaborationists. | ||
| They're all guilty. | ||
| And this just didn't come out, this is not like a summer storm that appeared out of nowhere. | ||
| This is the storm. When I gave the speech at CPAC, this is what I was talking about. | ||
| It's not a gathering storm. | ||
| The storm is here. | ||
| This is a collapse of the neoliberal neocon order because the only way you can prop it up is on the shoulders of MAGA financially and their sons and daughters who go die on foreign battlefields. | ||
| And you had over the weekend Max Boot with his mayor, Culpa, in Foreign Affairs. | ||
| Oh, you know, I've learned a lesson as a neocon. | ||
| It really doesn't work, and maybe it's not so sophisticated. | ||
| Screw you, dude. You've got all these dead kids, men and women, soldiers. | ||
| Our greatest patriots and the contractors or former soldiers, they're dead on foreign battlefields in Iraq and Afghanistan. | ||
| And now you sit there and write some piece in foreign affairs and say, you know, I made a mistake. | ||
| I really didn't understand. | ||
| You know, maybe democracy can't be important to certain nations. | ||
| This is the type of people that are not serious people. | ||
| Cortez. First off, Cortez, your theory of the case is, hey, Bannon, this is 10x worse than 2008. | ||
| Why is that, Steve Cortez? | ||
| Yes. No, I think it's a more dangerous moment in many ways than 2008 and 2009, and here's why. | ||
| Because at least we went into that crisis with the federal balance sheets, both on the fiscal and monetary side, in relatively good shape. | ||
| What I mean about that is total federal debt at that time was $8 trillion. | ||
| That's a lot of money, but it's manageable for a country as big as the United States. | ||
| Our federal debt is now four times that large. | ||
| We're above $31 trillion and counting, aggressively ascending higher. | ||
| Even worse, perhaps, look at the Fed balance sheet. | ||
| The Fed balance sheet at that time, heading into the 08-09 crisis, was $1 trillion, and it had been stable there for a very long time. | ||
| A very manageable amount, actually, for a country as big as the United States. | ||
| It is now $9 trillion. | ||
| Okay, so here's the point. | ||
| The credit card is already maxed, the national credit card. | ||
| So we are heading into this crisis in a far more precarious, far weaker financial condition, which means we will have a lot less ammunition to throw at any crisis. | ||
| That is the reality right now. | ||
| So this open-ended promise that we're simply going to back all institutional accounts, we're going to back all of these Silicon Valley oligarchs, why? | ||
| Because they have political power and because they're begging for it, is a very dangerous situation that we're in. | ||
| And in some ways, I think more dangerous, in fact, than 08 or 09. | ||
| And Steve, to that point of being able to see this coming, this wasn't some sudden storm that happened upon us. | ||
| No, this inflationary nightmare has been steadily building ever since Biden took office. | ||
| And as proof of that, let me offer my own tweet from a year ago. | ||
| If we can go to slide number four, please. | ||
| After appearing on your show almost exactly a year ago to this day, last March, the yield curve had become inverted. | ||
| And yield curve inversion is a massive warning sign For the economy, since World War II, the yield curve has a near-perfect record of predicting severe recessions. | ||
| We were talking about this on your show in all of my articles, Steve, a year ago, saying the bond market is revolting. | ||
| The bond market is revolting against Biden's inflationary policies. | ||
| Inflation is out of control, and it's going to get worse. | ||
| That was plain to see. | ||
| You didn't have to be a bond market savant to understand that massive trouble was percolating and brewing and worsening. | ||
| And now here we are. | ||
| Here we are with the real-world ramifications of a bond market revolt, a massive bank failure with legitimate worries that there are more to come. | ||
| Because other banks, they may not have some of the particular problems of SVB, particularly its concentration on tech, its dependence on tech, but other banks do have similar problems regarding bond holdings, bond holdings that were once considered safe that have now been destroyed because of Joe Biden. | ||
| And by the way, to show you historically just how unusual the market action has been in bonds, let me, if we can go to chart number one, please. | ||
| Let me show you this chart of stock and bond performance put together. | ||
| So this chart, by the way, is from BlackRock, which I find kind of funny because, of course, BlackRock is the most evil company in the world, and I normally don't want to promote their stuff, but they did this chart correctly. | ||
| And this shows you on the x-axis, the horizontal is the equity performance. | ||
| On the y-axis, the vertical is bond market performance. | ||
| As you can see, most of the time, the dots in the last 20 years are on the right side of that screen, which is where you want them to be. | ||
| Look at 2022. What a massive outlier is. | ||
| That is the red dot. Massive outlier meaning that both stocks and bonds got crushed concurrently because of Joe Biden and because of stagflation, something we haven't seen in this country, thankfully. | ||
| So what are the real-world ramifications of this? | ||
| If we can go to chart number two, let's look at unrealized gains and losses. | ||
| This is from the FDIC, and this chart should scare the hell out of every single American. | ||
| This chart goes back Fifteen years from the FDIC unrealized gains and losses at FDIC-insured banks. | ||
| As you can see, until the last couple of years, this chart is pretty boring, right? | ||
| Pretty small gains, small losses. | ||
| Banks generally are responsible, generally hold safe bonds with their money, and you don't have wild swings until now. | ||
| Until look at the last few bars on this chart, what has happened in recent quarters, the massive amount of unrealized losses sitting in bank portfolios because of Biden's inflation. | ||
| So this isn't just a storm, Steve. | ||
| It is a tsunami. It is a hurricane, okay? | ||
| And it is raging all around us, whether we choose to ignore it or not. | ||
| Corporate media is not going to tell you about it. | ||
| Joe Biden's going to lie to you. | ||
| Yellen's going to lie through her teeth and tell you that you're not on the hook for this. | ||
| You are on the hook for this, okay? | ||
| And here's perhaps the worst consequence of all going forward. | ||
| It's giving the Fed an excuse to stop fighting inflation. | ||
| So the inflation that is crushing middle-class prosperity already in this country, it is going to continue and it is going to worsen. | ||
| That's the reality. If you're having a hard time right now paying your utility bill, paying your car loan, it's going to get worse for you because of what Joe Biden is doing and because of this crisis over the weekend. | ||
| That's just simply the sad economic reality. | ||
|
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I want people to... | |
| I'm going to give you a concept. | ||
| This is just not to make you the most interesting person at the dinner party or the neighborhood barbecue or while you're watching the kids playing Little League. | ||
| This is to drive forward the notion that we can't let this country go down the tube. | ||
| So it's another piece of nomenclature. | ||
| When we say this is systemic because the economic system is hardwired into the financial system, the capital markets, and they try to always separate that. | ||
| Biden's illegitimate regime's management or mismanagement of the economy directly comes to these bank failures, and now maybe even these brokerage firm failures, and they always come back to you. | ||
| That's why they're going to have stories about the CEO who's a total bozo, the woke LGBTQ woman in London who they've been all woke, go broke on Daily Mail. | ||
| Yes, that's all interesting, and that's clearly a part of it. | ||
| But this cuts to the heart of the system itself, the way the system rolls. | ||
| And that's why the most powerful oligarchs, the most powerful oligarchs who caused the run on this bank, who caused the run on this bank, and are the beneficiaries of all the financial, quite frankly, crimes of this bank, have the gall They come to you for a ballot. | ||
| The reason is they think you're morons and trash anyway. | ||
| And you're just going to roll over and the people represent you because they own this town. | ||
| And that's why it is outrageous. | ||
| That the senior Republican leadership sat on a phone call last night for hours with FDIC, Treasury and all that and didn't immediately come before the microphones and said, this is outrageous. | ||
| If you're too stupid to understand this, like I explained it on Friday night, what was going to happen, if you're too stupid to understand you shouldn't be in Congress. | ||
| Where's the Republican leadership today to say, no, absolutely not. | ||
| We will burn this place down before we let a nickel to bail the worst people on Earth out. | ||
| They have plenty of money. This is the key. | ||
| They're all whining, oh, we're going to miss payroll. | ||
| We can't fund operations. | ||
| All these great startups are going to cure cancer and cure the energy problem and take care of climate change. | ||
| We're not going to be able to make payroll. | ||
| They're all going to miss their mortgages. | ||
| The venture capital firms that back them up, that have been stealing this money with these corrupt venture loans, have the cash. | ||
| All they have to do is extend a credit facility to their company to make payroll and fund operations. | ||
| This is all because they don't want to take dilution. | ||
| Once again, they want to socialize the risk. | ||
| They want to spread the risk to the MAGA and to the deplorables. | ||
| You cover all the downside, and they get all the upside. | ||
| Brother Cortez. Yes, totally. | ||
| And by the way, you're exactly correct that Republicans on Capitol Hill should be showing leadership right now. | ||
| But I would give similar advice to all candidates for office, especially candidates for the highest office, for the presidency. | ||
| So folks who are either officially in the race for 2024 or about to get into the race, This is a opportune time for them to, number one, decry this dirty deal, right? | ||
| To say this cannot happen in the United States. | ||
| And number two, give us their plan for how they're going to attack Biden's inflation. | ||
| So Trump, DeSantis, Haley, Pompeo, all of them. | ||
| Should be today, I believe, issuing statements about how this is totally unacceptable. | ||
| This is a dirty deal from the oligarchs putting their risks upon regular Americans. | ||
| But then also, not just that, not just denounce this dirty deal, but also give us the framework. | ||
| How are we going to, what is the agenda and actual plan to get back to a place of contained inflation with sustained growth in this country again? | ||
| Look, the economy was already the number one issue on most people's minds. | ||
| It has catapulted even higher in terms of the list of worries, of anxieties of regular Americans given this bank failure. | ||
| So this is a key moment where leadership needs to be displayed at the highest levels. | ||
| Yes, on Capitol Hill. | ||
| Yes, among presidential candidates. | ||
| And for that matter, I think all candidates for federal law enforcement. | ||
| If you want to be elected in 2024 and if you want to win your Republican primary, particularly, you better stand up and give us a populist economic message here and tell us that, number one, funding the oligarchs is wrong and unacceptable. | ||
| Number two, how are we going to get out of this quagmire that Biden has put us in? | ||
| 202-225-3121 is the number of the switchboard for the United States Senate. | ||
| 202-224-3121 is for the House. | ||
| So make sure you make your calls, let your voice be heard, send emails, all of it today. | ||
| Under no circumstances can we allow this to go down. | ||
| You have to say this is outrageous. | ||
| Physician, heal thyself is what they should be doing today. | ||
| Okay, also go to birchgold.com slash Bannon. | ||
| You go there, you get the third installment. | ||
| Boy, talk about timely, called The Debt Trap. | ||
| But the other two installments are there. | ||
| You read them all. I give it to you for a homework assignment. | ||
| I might be asking questions and checking papers later. | ||
| You need this now more than ever. | ||
| It's going to walk you through the financial crisis that we're in. | ||
| The third segment I've released, installment, is called The Debt Trap. | ||
| You've got to understand it all, and then you get the first two, the politics of money and the end of the reserve currency. | ||
| All three of them. Totally free. | ||
| No obligation, nothing. | ||
| Just go there and you just download it. | ||
| Short break. Back in a moment. | ||
|
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We rejoice when there's no more. | |
| Let's take down the CCP. The new social media taking on big tech, protecting free speech, and canceling cancel culture. | ||
| Join the marketplace of ideas. | ||
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| It's time to say what you want, the way you want. | ||
| Download now. | ||
| Okay, make sure you go to ghetto. | ||
| We're putting up stuff nonstop. | ||
| I got to go back to that chart. | ||
| Here's why, ladies and gentlemen, there is a it's not a ticking time bomb. | ||
| It's a it's a buried thermonuclear weapon on the balance sheets of banks. | ||
| You got to call these Biden bonds and Biden banks. | ||
| He's the new Herbert Hoover. | ||
| He has driven the United States to the verge. | ||
| He's thrown into a financial crisis. | ||
| This is 100, and don't believe all this crap about, this is about these marginal deregulation things of Trump and it's about the, no, no, no, no, no, no, no, no, no, no. | ||
| This is 1000%, 1000% on Biden's watch about their direct, and the people, it's not Trump. | ||
| It's the collaborationist senators that went along with this. | ||
| The collaborationist senators. | ||
| Check out, is your senator one of them? | ||
| Then let him or her know what you think. | ||
| Steve Cortez, let's go back to that chart. | ||
| Because I want to put people ahead of the curve here because what the banks did was what you would think. | ||
| They bought long securities that were supposed to be pretty boring. | ||
| The problem is Biden came in and completely upended the economy with massive... | ||
| This is the results of monetary theory. | ||
| And remember, he just dumped a $6.8 trillion budget on you that he has no ability to pay for whatsoever. | ||
| And the House Freedom Caucus, I love you guys, but the Friday thing wasn't good enough. | ||
| You can't come in with a handful of I don't like this program. | ||
| I don't like this. It's got to be it. | ||
| We have a systemic problem. | ||
| We have to come back with systemic solutions. | ||
| That means, you know, deconstructing part of the Defense Department. | ||
| So we're not like in Syria. | ||
| This is where everybody the Syria vote last week. | ||
| It's small, but it's the beginning step of taking back commitments. | ||
| You got to take back commitments, social commitments. | ||
| And by the way, while you're taking away Medicaid and others from U.S. citizens, as tough as that is, you should be paying no pensions in Kiev. | ||
| You should be paying no medical health insurance in Kiev. | ||
| You should be paying no weapons in Kiev. | ||
| How about this? Zero money for Ukraine. | ||
| And why is Janet Yellen when she should be on top of this banking crisis that didn't appear overnight? | ||
| Why is she in Ukraine laying roses there at the wall? | ||
| She should be called in tomorrow. | ||
| The Senate should call her in to start impeachment on Yellen just to kick it off. | ||
| Just so we can get to the bottom of this. | ||
| Go back to that chart, Cortez, because if folks think this is over by this happy talk they're throwing out this morning, no, no, no, no, no, no, no. | ||
| We're a long way from over because just continue to throw a gasoline, high octane gasoline on a dumpster fire, sir. | ||
| Right. No, exactly correct. | ||
| And by the way, Joe Biden, just to get to the unseriousness of our supposed leaders right now, Joe Biden looks at the economy, which is in absolute turmoil, especially for working class people, inflation out of control. | ||
| And what's his answer? | ||
| His answer is, I'm going to give you an even worse budget, an even more inflationary federal budget that is 35 percent higher than pre-pandemic levels. | ||
| I mean, it's almost as if he's He laughed at America and said, oh, you think that's bad? | ||
| Wait until you see this budget. | ||
| It's going to be even worse. | ||
| But guess what? Regular people, the bond market included, bond traders, revolting against his policies just today. | ||
| By the way, right now, just updating. | ||
| KRE, which is the regional bank ETF, it's all the regional banks in one ticker, right now down 14 % on the day. | ||
| Steve, that's a bad year. | ||
| Forget about a day, okay? | ||
| Down 14 % on the day. | ||
| Charles Schwab's stock, which is bank-like, the brokerage firm, is down 16 % on the day. | ||
| Why? Well, let's go back to chart number two, if we can, please. | ||
| This is from the FDIC, the Federal Deposit Insurance Corporation, which is how the federal government insures deposits in banks. | ||
| And these are unrealized gains or losses in the investment accounts of FDI-insured banks going back to 2007. | ||
| And as you can see, Prior to this recent period, prior to the last few quarters, this is a pretty boring chart, because for the most part, banks have been really responsible. | ||
| And they have bought treasuries, as SVB did, which were stable and safe. | ||
| They have become anything but stable or safe under Joe Biden. | ||
| So if you see on that chart, relatively small gyrations of gains and losses over the years, nothing terribly consequential until Joe Biden. | ||
| And now the unrealized losses are absolutely falling off of a cliff. | ||
| And worsening. Not only is it bad, but the trend is worsening. | ||
| So to your point, Steve, we may very well be at the beginning of this crisis, not even in the middle, certainly not at the end of this crisis. | ||
| And what Joe Biden and Janet Yellen are telling the American people is you're going to take it. | ||
| You are going to bear the brunt of this. | ||
| You know, again, you didn't make the mess, but you're going to clean it up. | ||
| You weren't invited to the party, but you're going to pay the tab. | ||
| Why? Because the oligarchs on the West Coast, to start with, those oligarchs demand that we fund their risk. | ||
| They get all of the upside and we get all of the risk. | ||
| Not a very good deal for regular Americans, certainly not for the deplorables. | ||
| Look, this exact kind of situation, this exact kind of toxic bargain, is what led to the Tea Party, which led to the America First movement, to the presidency of Donald Trump. | ||
| So our movement very much finds its origin in exactly this kind of calamity and this kind of economic injustice. | ||
| Unfortunately, this episode is proof that this injustice persists. | ||
| And in fact, under Joe Biden, is pervasive and growing. | ||
| Now, we have agency. | ||
| We can stop it, starting with the House of Representatives, which we earned control of in the last election. | ||
| And we need to use that agency and use that political lever. | ||
| And from here, going forward, we need to make sure that into 2024, We elect a president and senators and House members who believe in our vision of populist economics and who will not tolerate, number one, Joe Biden's inflation, but number two, will not tolerate this kind of transfer of risk to regular Americans where the crony credentialed managerial class gets all of the upside and then regular Americans fund the downside. | ||
| It is totally unsustainable. | ||
| It's an unsustainable economic model, and it's unsustainable societally, Steve. | ||
| And let me give you another prediction here. | ||
| And I might sound alarmist to some folks, but I think it's correct. | ||
| And by the way, most of my economic prognostications have turned out to be exactly spot on. | ||
| If the Fed stops fighting inflation, and if we have sustained high inflation in this country, which I believe we are going to, We will have societal chaos, mark my words, because when people cannot pay for the necessity of life, when they can't pay for food and energy, believe me, this is a volatile country, okay? | ||
| Often that is a benefit to us. | ||
| We're very dynamic people, but there's also a downside to that. | ||
| There's a risk to that. We're not going to just take it the way the Japanese took their lost economic decades. | ||
| We're not a docile people. | ||
| And if this inflation remains at these levels or higher, there will be chaos. | ||
| We have lost decades ahead of us. | ||
|
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If we continue on right now, we're at an inflection point. | |
| Lost decades. And a lost generation. | ||
|
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Millennials and Gen Z. Okay? | |
| A couple of lost generations in lost decades. | ||
| 90-second break. |
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