March 14, 2023 - Bannon's War Room
48:52
Participants
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| Speaker | Time | Text |
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| This is the primal scream of a dying regime. | ||
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unidentified
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Pray for our enemies, because we're going medieval on these people. | |
| I got a free shot at 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
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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. | |
| The storm is here. | ||
| The storm is here. | ||
| This is the most dangerous time in world history since the late 1930s, early 1940s. | ||
| And how did we get here? | ||
|
unidentified
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Our betters, our elites led us here step by step by step. | |
| What you have now is you have two converging crises. | ||
| A crisis of capital markets and economics and a crisis of geopolitical and military. | ||
| And they're converging very rapidly and then they're going to conflate. | ||
| And once they conflate, they're going to spin out of control. | ||
| And it's anybody's bet. | ||
| Now remember, we came off of, on 3 November of 2020, four years of peace and prosperity. | ||
| The interest rate, the 10-year Treasury in the evening of 3 November when Fox News illegitimately called it for the opposition and not Donald J Trump. | ||
| Of which our nation has never recovered, of which it's never recovered, the interest rate in the 10 year straight was 0.8%. | ||
| 0.8%. | ||
| Today, for the first time in God knows when, the entire structure of our interest rates from one month treasuries to 30 year treasuries went over 4%. | ||
| Do you understand that the system is set up of debt? | ||
| It cannot take those type of interest rates. | ||
| You will be absolutely crushed, and the people crushed the most are the millennials that now have $9 trillion of debt. | ||
| They are going to be Russian serfs. | ||
| They're not going to own anything with no possibility of owning anything. | ||
| Professor Robini just told us about the financial aspects of it. | ||
| We're going to have recession, inflation, stagflation, depression, debt crisis. | ||
| Dr. Doom, who called 2008, said it's only going to get worse because the world's got $300 trillion of debt. | ||
| Now let's talk about the United States, right? | ||
| What do we have? $32 trillion? | ||
| That's nothing. The CBO reports you're going to have another $20 trillion in debt in 10 years. | ||
| You're going to be paying a trillion dollars a year in interest payments. | ||
| It's not sustainable. | ||
| Who got us here? | ||
| Well, Joe Biden, yeah, but he got here because of the compromise made by the establishment Republicans in the Senate. | ||
| They took away the gavel from you. | ||
| What are they doing right now? | ||
| You need dramatic, you need dramatic, dramatic cuts. | ||
| You need dramatic cuts in spending right now and not one penny increase to the debt ceiling. | ||
| Not one penny. If you prioritize the payments, if you prioritize the payments, there's plenty of cash. | ||
| The cash comes in, we pay off the interest. | ||
| We pay off any securities that come due. | ||
| We never default in the debt ever. | ||
| We pay off Social Security and Medicare. | ||
| And then we have to have a conversation, right? | ||
| We have to have a conversation. | ||
| It's not an easy conversation. | ||
| All the easy decisions of decades ago. | ||
| We know the president had to be sort of convinced over the weekend to get this done. | ||
|
unidentified
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But was told, look, the risk of a contagion was so high, they felt like they had to do something. | |
| And he emphasizes helping small businesses rather than the crypto community and Silicon Valley. | ||
| But it's certainly instability. | ||
| We saw the markets react yesterday. | ||
| What's the fear of perhaps global impact? | ||
| Are there banks around the world that could be impacted by this? | ||
| Well, I think, first of all, I was here. | ||
| I lived in Washington in 2008 in the global financial crisis. | ||
| This is nothing like that, but that kind of sense of déjà vu when you had reports over the weekend, regulators meeting, and then the Sunday night press release. | ||
| This brought back terrible memories of that period. | ||
| I think there is a sudden recognition from this that actually, you know, the impact of the sharp rise in interest rates, which was sort of the underlying cause of, or part of the underlying cause of Silicon Valley Bank's failure, that is going to have knockout effects. | ||
| And the reason that you're seeing all of these bank share prices tumble is that there's a sudden kind of, oh my goodness, which are the other weak links? | ||
| Where are the other banks? And in the aftermath of 2008, There was a very big push to clean up and to strengthen the banking system, to recapitalize it, and to really put in rules that would prevent major systemic risk from banks. | ||
| And what actually happened was that that really did happen to some point. | ||
| But two things have happened since then. | ||
| One is that there was regulatory rollback in 2017 and 2018. | ||
| And Silicon Valley Bank, they lifted, they used to have a limit of any bank which had more than 50 billion would have to be subject to this extra regulation, extra supervision, and would have to have a plan in place for how to deal with a crisis, how to kind of deal with its own demise. | ||
| And Silicon Valley Bank would have been covered by that, was covered by that, but there was a big push in the mid-teens, particularly on the Trump administration, that this was regulatory overkill, it was too much of a burden for small and medium-sized banks, and therefore the limit was raised. | ||
| It was raised to 250 billion, and Silicon Bank was no longer covered, and therefore it was able to kind of go on the bender that it did go on. | ||
| And now the question is, how many other banks are actually weaker than people thought they were? | ||
| And that kind of question I think is going to be had around the globe. | ||
| Used cars we were worried about, down to 2.8 a month. | ||
| Yeah, look, the index for rent is up 0.8, and we've been just reading a lot of stories about how rent has peaked. | ||
| That's very important. Lodging away from home, we're now hearing that maybe people are at their last leg in terms of spending for going away. | ||
| Morgan Stanley on consumption. | ||
| And then airfare is definitely a problem, there's no doubt. | ||
| But if you're going to stop traveling as much, or you could say that United is saying the opposite, airfares actually are still up. | ||
| And then I look at this overall and I just say, well, it's not a great number. | ||
| It's not a spike. | ||
| The trend line's okay. | ||
| It gives the Fed ammo to be able to do 25 without making us feel like that They're gonna put the system under given the fact that we got the the somewhat explicit guarantee from Treasury | ||
| and then maybe the most | ||
| newsworthy response that we received was from Florida Governor Ron DeSantis. | ||
| DeSantis has well-known views on many topics, of course, but until tonight, no one could really say with precision where he stood on the war in Ukraine, which is arguably the most important topic in the world. | ||
| And now we know. DeSantis is adamantly opposed to the position that most Republicans in Washington have taken on Ukraine. | ||
| DeSantis is not a neocon. | ||
| Who knew? While the US has many vital national interests, DeSantis writes, securing our borders, addressing the crisis of readiness within our military, achieving energy security and independence, and checking the economic, cultural, and military power of the Chinese Communist Party, becoming further entangled in a territorial dispute between Ukraine and Russia is not one of them. | ||
| Without question, he writes, peace should be the objective. | ||
| The US should not provide assistance that could require the deployment of American troops or enable Ukraine to engage in offensive operations beyond its borders. | ||
| F-16s and long-range missiles should therefore be off the table. | ||
| These moves would risk explicitly drawing the United States into the conflict and drawing us closer to a hot war between the world's two largest nuclear powers. | ||
| That risk is unacceptable. | ||
| DeSantis goes on to oppose the policy of regime change in Moscow, which is very popular in Washington, and he points out that the Biden administration has created an alliance between Russia and China, and that's a disaster for the United States. | ||
| We cannot prioritize intervention in an escalating foreign war over the defense of our own homeland, especially as tens of thousands of Americans are dying every year from narcotics smuggled across our open border, and our weapons arsenals, critically for our own security, are rapidly being depleted. | ||
| So that's DeSantis' position, clarified. | ||
| Tuesday, 14 March in the year of our Lord, 2023. | ||
| In the converging crises, the geopolitical war on the Eurasian landmass, also our war with the Chinese Communist Party from Point Loma, where a submarine deal was cut yesterday, to Bakhmut, Really the greatest battle of the 21st century where Zelensky staked it all. | ||
| And you can't deny the courage and really resilience of the Ukrainian civilians and armies are getting pounded. | ||
| But the other part of that, the global meltdown in banking and finance and capital markets. | ||
| I've got Steve Cortez. Senator Vance from Ohio is going to join us in a second, who's on the Senate Banking Committee, and obviously very concerned about the folks. | ||
| He's the first real politician to get out to East Palestine. | ||
| We're going to get to a second. Cortez, this morning, as we've called it, the Biden, and people, look, it is woke. | ||
| They've got ESG, all of that. | ||
| That's not the main thing. | ||
| Don't be distracted. | ||
| That's all important, but that's not the main thing. | ||
| The main thing, as we've said, is the Biden, that $6.8 trillion budget that gave us last week, the spending from the beginning, the overspending, the great increase in aggregate demand, inflation burning, the bonds getting crushed. | ||
| This is Biden bonds, Biden inflation to Biden bonds to Biden banks, and now you've got You know, you have $19 trillion of deposits, I think $5 trillion of uninsured deposits, I read last night. | ||
| Steve Cortez, the Fed is absolutely jammed, right? | ||
| They got two tough choices. | ||
| No more rate increases and let inflation burn through the working class in this country. | ||
| Or let it ride. | ||
| Your thoughts, sir, on this morning's CPI print. | ||
| Well, it was another terrible print, proving now that real wages have declined for two straight years under Joe Biden. | ||
| I mean, think about that. Americans are working harder to get poorer for 24 consecutive months now, the worst streak in all of American history. | ||
| That is the economic reality being experienced by Americans because of what Joe Biden and Permanent Washington have done because of their massive policy failures. | ||
| And it's not just Biden. | ||
| He gets most of the blame, of course, and he deserves most of the blame, but it's also collaborationist Republicans like Mitch McConnell, like Tom Cotton, who voted for that omnibus monstrosity, okay? | ||
| These are the real-world consequences. | ||
| And this CPI report this morning, the headline number was bad. | ||
| The details, Steve, were even worse because the necessities of life, forget about the luxuries, the necessities of life are still rising at a double-digit rate. | ||
| Things like groceries, food at home, things like bread. | ||
| Bread was up 15%. | ||
| Electricity double-digit gains. | ||
| The staples of life are rising dramatically. | ||
| And to your point, Steve, the Fed is now trapped. | ||
| Because if the Fed raises rates to fight this inflation, which I believe it must, but if it raises rates, it risks an even worse banking crisis. | ||
| So they are absolutely in a corner. | ||
| You have to understand, ladies and gentlemen, that we've come to this inflection point, as we told you were going to come, because of the destruction of the economy, because of Biden's direct economic policies. | ||
| Please don't be diverted with the wokeness. | ||
| These institutions are clearly woke. | ||
| It's a democratic ATM. We know that. | ||
| We've talked about that for the last couple of days. | ||
| The central beating heart of this It's the overall macroeconomic strategy of this country that can't continue on. | ||
| And now you've got a Hobson's Choice. | ||
| Right now, you're either going to burn down the working class with inflation that will be out of control, or you kick up rates, and you're going to have a total and complete collapse. | ||
| of the American banking system and the global banking system. | ||
| You're paying for these bailouts 1,000%. | ||
| They're hiding them with bank fees. | ||
| Remember, you add signatures. | ||
| Signature has $80 billion of uninsured deposits. | ||
| You add that onto the $150 billion at Silicon Valley Bank, you have almost a quarter of a trillion dollars. | ||
| In uninsured deposits that you're backing up, and that's just the start. | ||
| You've got six more regional banks are on the watch. | ||
| You've got Credit Suisse. We've got it all. | ||
| Okay, short break. Senator J.D. Vance of Ohio, the first person to really go out and say, hey, East Palestine has to have a voice. | ||
| He's also on the Senate Banking Committee. | ||
| We're going to take a short commercial break. | ||
| He'll join us in a few moments. | ||
|
unidentified
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Here's your host, Stephen K. Bamm. | |
| you you Okay, welcome back. We have Senator J.D. Vance. | ||
| Senator Vance, we got a lot to do on East Palestine. | ||
| We'll get to you with you later on that because you're the tip of the spear. | ||
| Tell me about, you sit on the Senate Banking Committee, your thoughts of this debacle that's been created by Joe Biden, sir? | ||
| Yeah, well, first of all, of course, Steve, you have massively rising interest rates caused by the runaway inflation and spending from the Biden administration. | ||
| That's put a lot of pressure on a lot of local banks. | ||
| Now, that's not to defend the Silicon Valley Bank. | ||
| Let's be honest here, Steve. | ||
| They got way out ahead of their skis. | ||
| Over 90 % of their deposits were uninsured deposits, and they just caused a massive problem in their balance sheet. | ||
| Here's what I want to talk about, Steve. | ||
| There are two separate issues that are getting confused by the mainstream media and the establishment on this issue. | ||
| What happens to Silicon Valley Bank is one issue. | ||
| Whether we have a bank run and a financial panic is the second issue. | ||
| My view, Steve, Is that we could have prevented a bank run without bailing out SVB. And let's be honest, that's exactly what we did. | ||
| What we basically did is we're going to charge community banks higher fees to put more money into Silicon Valley Bank to bail out depositors. | ||
| I think that's a catastrophic decision. | ||
| And I actually talked to the Treasury Department, the FDIC, I believe yesterday, Steve. | ||
| And the question that I asked them and I did not get a good answer was, are we now a country where there is not such a thing as an uninsured bank deposit? | ||
| Are you guys saying that you're going to backstop every bank deposit in the country even when it's multi-million dollars from multi-million dollar tech enterprises? | ||
| They did not give me a good answer. | ||
| So we got to be honest here, we just created massive moral hazard in the financial system. | ||
| We basically said we're going to bail out any deposit or anywhere, no matter how wealthy they are. | ||
| That's going to cause a lot of risk, Steve, and that's going to create some real, real systemic risk in our banking system. | ||
| Senator Bantz, you're breaking some big news here. | ||
| You mean you actually talked to the people of FDIC and they didn't give you – because there's 19 – I think there's $19 trillion of overall deposits. | ||
| I think there's $5 or $6 trillion of uninsured. | ||
| They didn't give you a straightforward answer as a member of the banking committee about what the logic is here and what their plan is? | ||
| No, Steve. I said, is it now the official policy of the U.S. government to not allow any uninsured deposits? | ||
| And the person I spoke to basically said, well, we can't really answer that, Senator Vance. | ||
| We don't have a good answer to that question. | ||
| There are a couple points, lines of investigation we need to attack here, Steve. | ||
| Number one is, who exactly got the bailout? | ||
| There are a lot of foreign depositors at Silicon Valley Bank. | ||
| Are you meaning to tell me That community banks are going to be paying higher fees to send money potentially to Chinese depositors. | ||
| That is one possibility that comes from this. | ||
| The second thing, Steve, is how was the decision made to bail out SVB? They could have stopped the bank run. | ||
| The Fed could have said, we will be the lender of last resort. | ||
| We're not going to let community banks go out of business without doing this to SVB. How was the decision made to backstop not just our community and regional banking system, But also SVB, which got way out ahead of its skis, took on way too much risk, and is now paying the price for it, or should be paying the price for it. | ||
| You know, the FDIC's got to understand. | ||
| Right now, they've guaranteed unassured depositors of... | ||
| You add signature in Silicon Valley, you're almost at a quarter of a trillion dollars. | ||
| You're at $250 billion unassured. | ||
| The FDIC account line is, I think, $100 billion, $125 billion. | ||
| They're only halfway there. | ||
| The fees charged... | ||
| To average Americans, Senator Vance, is going to be enormous. | ||
| And I got to tell you, it is divine providence that we have a fire-breathing populist who is as smart as they get as J.D. Vance, Senator J.D. Vance, on the banking committee. | ||
| That was divine providence that you got that committee, sir, because you can be the voice of the working man and woman in this country that are basically underwriting this. | ||
|
unidentified
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Is that correct, sir? No, that's absolutely right, Steve. | |
| You're right. The way that this is going to get paid for, like I said, is by these excess fees on community banks, which means that when you go into your community bank and you notice that you're getting charged higher fees, that money is going directly to Silicon Valley Bank's uninsured depositors. | ||
| We can't overstate this, Steve. | ||
| We have basically a too-big-to-fail banking system, and what the Fed and the Treasury decided is that Too Big to Fail applies to Silicon Valley Bank. | ||
| It applies to Signature Bank. | ||
| It applies basically to the entire banking system except C. I bet that they would not bail out the small mid-sized bank in Middletown, Ohio. | ||
| I guarantee that they're not going to bail out some of these farmers and local credit unions if they suffer financial problems because they're just not going to treat them the same and they don't have the same well-connected friends in Washington, D.C. And that's the lesson we gotta take from this. | ||
| Whatever you're gonna do, you gotta tell people proactively. | ||
| You cannot change the rules after the game has already been played to bail out a lot of donors of democratic special interests. | ||
| That's exactly what we just did. | ||
| East Palestine, Ohio, you have a voice in the banking committee, because trust me, if the bank in East Palestine went under, they would just sit there and go, hey, tough break for some swell folks. | ||
| Senator, we know you've got to bounce. | ||
| How do people follow you? | ||
| What are your coordinates on social media, and how do they get to your Senate page to find out more about you, sir? | ||
| Yeah, vance.senate.gov, Steve. | ||
| I'm on Twitter, JDVance.1, TruthGitter, all the big social media networks that go and find us there. | ||
| And look, we are going to keep on hammering this issue. | ||
| It is ridiculous that you have the little guy bailing out the big guy again. | ||
| But that's the way that it works right now in the United States of America. | ||
| Not if I can help it. Senator Vance, I can speak for the entire audience and all of MAGA. Thank you very much for your courage in stepping in here because the banking committee is where the swamp meets. | ||
| So thank you, where the cartel meets. | ||
| So thank you, sir, for standing up for folks. | ||
| Thanks, Steve. Take care. Cortez, you said this when you were out campaigning with J.D. Vance, that this is what he was built for, right, this time and moment, sir? | ||
| And he understands the hour is late. | ||
| Yes, 100%. | ||
| He's exactly the kind of populist fighter that we need on Capitol Hill. | ||
| And J.D. Vance, very early in his tenure, he is already changing the United States Senate. | ||
| And he mentioned the additional costs of this bailout, right? | ||
| And this bailout only happened, J.D. is exactly correct. | ||
| This bailout only happened because of the political power of tech and the political power of California broadly, okay? | ||
| So this is because of Gavin Newsom. | ||
| This is because of the oligarchs of big tech. | ||
| As you correctly pointed out yesterday, Steve, on the show, the venture capital firms could have easily financed the near-term The financial needs of this industry. | ||
| This would not have been a systemically risky event had it been allowed to fail. | ||
| That's just reality. | ||
| They simply didn't want to. | ||
| They didn't want to go to their pocketbooks. | ||
| They didn't want to dilute themselves out of some of their stakes of these firms. | ||
| And so they stuck it with the taxpayers. | ||
| But in addition to the actual cost, the explicit cost that JD talked about from community banks, It's also important that we talk about the implicit costs, which again relate back to the CPI report that we got this morning. | ||
| And I mentioned previously the cost of bread. | ||
| Let me give you the specifics. Bread up 15.8 % from this morning's CPI report. | ||
| Groceries, 10.2%. | ||
| Utilities, 14.3%. | ||
| Electricity, 12.9%. | ||
| Steve, these are the necessities of life at double-digit rates of increase, impoverishing middle- and lower-income citizens. | ||
| And the Fed, because of what happened with SVB, the Fed is now trapped. | ||
| It's trapped. Explain to people what this trap is, because this is probably more than anything else. | ||
| I disagree with Tucker. Ukraine is monster important. | ||
| And I really appreciate, I want to tell everybody, I really appreciate this audience lighting me up. | ||
| I put up on... | ||
| On Getter earlier, the Tucker clip and about DeSantis saying, you know, getting old time religion here about Ukraine. | ||
| And I want to give a hat tip to the audience. | ||
| They lit me up. They said, hey, he didn't say cut off all the money. | ||
| I mean, they don't think he's a total convert yet. | ||
| We're going to get into that more later. | ||
| But the most important thing is where this jam is the Fed. | ||
| And we said this is going to happen. | ||
| And it's all it ain't. | ||
| It's not related to woke. | ||
| Woke is important here, but it's kind of a marginal issue. | ||
| The central beating heart is the cartel in this city. | ||
| In 18 collaboration as Republicans work with Biden, it was the spending first. | ||
| We said it was going to destroy the capital markets. | ||
| This is the bond market's revenge, is it not, sir? | ||
| Yeah, exactly, Steve. | ||
| And correct, listen, nobody hates woke more than Steve Bannon and Steve Cortez, okay? | ||
| We hate this corporate cultural Marxism from big business, okay? | ||
| We hate it. We despise it. | ||
| It's ruinous for our country and for our society. | ||
| However, that is not the issue here. | ||
| And I think far too many people on the right, from the media appearances that I've watched and read over the last 24 hours, far too many people on the right are being distracted, okay? | ||
| SVB did not fail because of its wokeness. | ||
| It failed because of Joe Biden's inflation. | ||
| So don't major in the minors, okay? | ||
| Focus here, the signal, not the noise. | ||
| Focus on the signal. | ||
| Joe Biden's inflation spurred a bond market route of epic proportions. | ||
| 2022 was the worst year for Treasury bonds in the history of the United States, in data going back 100 years. | ||
| And concurrent with that bond market route, stocks also got killed. | ||
| So I believe that in total, it was the worst capital markets year in all of history. | ||
| The consequences of that kind of portfolio destruction, the consequences include the failure of Silicon Valley Bank and now Signature Bank, and what bank is next? | ||
| We don't know. But here's the other consequence, Steve. | ||
| We have horrific inflation, and the Fed is now unable to try to fight that inflation because the Fed believes that if it does, it will tip the banks into an even worse crisis than they're already in right now. | ||
|
unidentified
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So this is the corner we've been putting in because of Joe Biden. | |
| And you are the creditors committee. | ||
| We mean this. But they've given an implicit guarantee of $19 trillion of deposits. | ||
| I think $5 or $6 trillion of uninsured deposits. | ||
| And the balance sheets on the other side are sitting on these government securities that are only going to get worse over time. | ||
| They have $600 billion of unrealized losses right now. | ||
| This is why you're in the middle of a banking crisis, and they've looked to you. | ||
| These fees, by the way, are coming right back to you. | ||
| The FDIC, as we see it now, only has at max $125 billion to cover these uninsured depositors. | ||
| If you just do the simple math, at the two banks, it's $250 billion right now. | ||
| I think $150 to $180 at Silicon, because I still can't figure it out, $80 billion over at Signature. | ||
| This thing is out of control, and it's 1,000 % the economic policies of the illegitimate Biden regime, coupled with the support they got from the Greek chorus of the collaborationist Republican Senate, led by Mitch McConnell. | ||
| Thank God, J.D. Vance and a couple of people there. | ||
| Okay, Cortez is here. We've got Dave Brett in the house. | ||
| We've got a lot to go through. | ||
| The Third World War, starting ugly, starting ugly in the war room. | ||
|
unidentified
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Let's take down the CCP! Here's your host, Stephen K. Bannon. | |
| Okay, welcome back. | ||
| Want to make sure you go to birchgold.com slash Bannon. | ||
| You got the third installment, The Debt Trap. | ||
| Everything's free here. Everything's free at the Birch Gold, all the information, but particularly these monographs I'm putting out. | ||
| Let's call them that. There's three of them now. | ||
| The politics of money was the first. | ||
| Talk about the founding of the nation all the way up to the founding of the Central Bank, the Federal Reserve. | ||
| Then the second is talk about the pressure of the dollar as a prime reserve currency. | ||
| And the third is now the debt trap will put you right in the seat. | ||
| I'm kind of – I think the C-PAC speech and the debt trap we worked on in December – I think they're aging well. | ||
| I think they're aging well. | ||
| And that's why, remember, we build this show around just one concept. | ||
| To make sure that working class and middle class people in this nation get as sophisticated a breakdown of what is really important in the world, in the country, and in their world as possible. | ||
| No happy talk, no chasing shiny toys here. | ||
| And I really appreciate it. | ||
| I love the fact you guys are on it because you lit me up. | ||
| About this DeSantis thing. | ||
| We're going to get to that in a second. I got Brad in here. | ||
| Dave, there's a lot of controversy about what's happening right now with the capital markets and the economic policy, inflation, all of it. | ||
| A bunch of Reaganites are actually jumping in here. | ||
|
unidentified
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Yeah, well, J.D. just laid out a little piece on the moral hazard yesterday all day. | |
| You were saying who takes the upside, the rich, and who gets the downside, you, the taxpayers, on the hook. | ||
| And then Hankey this morning, Steve Hankey, professor. | ||
| Who's Steve Hankey? Professor at Hopkins Reagan Economic Advisors. | ||
| Yeah, Ronald Reagan. | ||
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unidentified
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Yeah, Ronald Reagan. Very good guy to follow on all this, but he says the moves we just made over the past couple days in banking is leading the banking sector to become more of a public utility. | |
| And so you can see this merger. | ||
| Everything's big. Give me that again. | ||
| This move over the last couple days is turning the banking sector into a public utility, basically meaning that the government will regulate. | ||
| The critique out of the New York Times and Washington Post and everybody is it's a regulatory problem. | ||
| That's not true because this is an international phenomenon. | ||
| The same thing happened to all the banks because the Fed printed too much money. | ||
| You got inflation, the Fed's raising rates, and this particular bank made bad bets. | ||
| But when you're paying $6 trillion for government, I don't mind. | ||
| Where's the regulation? Ladies and gentlemen, understand something. | ||
| This is what you're paying for. | ||
| Make sure nobody spins you any other way. | ||
| You in this audience are 100 % underwriting this. | ||
| They're going to charge you fees due to the community banks. | ||
| You're going to pay the fees, and right now there's a yawning gap. | ||
| But this thing was insolvent back in the fourth quarter of last year. | ||
| It has a leverage rate of 185 to 1. | ||
| A bank should have what? 3 to 5 to 1, an investment bank 8 to 1. | ||
| In the crisis of 2008, the investment banks were 20 to 1 to 35 to 1. | ||
| We understood that's one of the problems. | ||
| They became hedge funds. This bank's not even a hedge fund. | ||
| It's like a fraternity house, sorority house. | ||
| It's outrageous what they did. | ||
| The regulators should have known this back a year ago. | ||
| Right? A year ago. | ||
| It was on their balance sheet and the unsecured deposits and all the other games they were playing. | ||
| The regulators should have known it a year ago. | ||
| This shows you in the Biden administration, you're going to find out, and this is why I want to get J.D. back on and talk to him at Banking Committee. | ||
| They knew this on Friday. | ||
| They knew this, Cortez, and they waited. | ||
| The California regulators had to jump in here because the Fed was not moving on a federally chartered bank. | ||
| And they didn't want to move because they wanted to get to the weekend and clean up the mess. | ||
| But J.D. Vance dropped a bombshell, and I want to make sure Grayson are pulling this and getting it out. | ||
| He dropped a bombshell on here. | ||
| J.D. Vance, a pretty smart guy, Yale grad, lawyer, best-selling author, and as smart as you can get, Cortez, you agree? | ||
| You've got to go raw horsepower, and he's got common sense. | ||
| He sits down with the FDSE. Understand, ladies and gentlemen, these are guys in charge of this thing. | ||
| He asked him, he says, hey, I'm looking here at some math. | ||
| Are you guaranteeing all deposits? | ||
| Or if you're even guaranteeing uninsured deposits, that's $4 or $5 trillion. | ||
| What are you actually guaranteeing? | ||
| And they're in the mumble tank. | ||
| Well, we're defining that now. | ||
| Screw you. You stepped in and took a quarter of a trillion dollars and guaranteed it, including... | ||
| Some to the Chinese Communist Party, right? | ||
| He didn't make the venture capitalist stuff here, the Chinese Communist Party. | ||
| Cortez, how big a bombshell is that? | ||
| Because folks at home understand, you're better, as I keep telling you this, give me the first hundred people that come to a Trump rally that were in Iowa last night, red ball caps on, or give me the first hundred people I would meet on Main Street in East Palestine, Ohio. | ||
| Just give me the first hundred. | ||
| And you will have a better run government than you got with this set of clowns up here that you're paying $6.8 trillion a year and you just gave them a 5.2 % raise. | ||
| Steve Cortez. Yeah, and by the way, Steve, to that point, think of how astounding it is that no one in Washington has yet paid a price for these systemic failures. | ||
| The fact that Janet Yellen is still the Secretary of the Treasury after lying through her teeth to the American people for years telling us that inflation was, quote, transitory. | ||
| After supposedly being the leader of the American economy and the American financial system during this systemic bank failure fiasco, she still has her job. | ||
| How is it possible that Jerome Powell is still in charge of the Fed? | ||
| Which now faces an impossible quandary of its own making, by the way. | ||
| Nobody should feel badly for the Fed because it's in this terrible predicament. | ||
| It made its bed, right? | ||
| It allowed this inflation to get out of control, but it now has no good option in terms of fighting it. | ||
| But to your point, there are no consequences for the mavens of Washington, D.C., unfortunately, and no consequences for the oligarchs, because what we now have, and Senator Vance spoke to this point, what we now have, unfortunately, Is the American taxpayer, we do not participate in the upside. | ||
| We do not participate in the privatized gains from the system, but we bear all the risks, the public losses. | ||
| We bear all of the risks, and we enjoy none of the upside. | ||
| That is the reality of the oligarchy that prevails in 2023 America. | ||
| We haven't learned anything from 2008, 15 years later. | ||
| Nothing. Once again, you SAPs in this audience, and you're stuck with it, here's how bad it is. | ||
| Remember, let's put a pin and we're going to come back to J.D. Vance. | ||
| That's a bombshell. They could actually concoct this over the weekend, and they cannot give you a straight answer right now. | ||
| Answer the question. Are we guaranteeing all deposits in all banks in the United States, all $19 trillion? | ||
| Or are we guaranteeing, I think, the $5 or $6 trillion of the uninsured deposits? | ||
| Pick them, because you gave Signature Bank, which had Barney Frank on the thing. | ||
| You got Barney Frank spreading his niceties, right? | ||
| You got Barney Frank, and you got the Democratic Party ATM. I want to read something Politico, too, and this is why you have to light up I want a tidal wave of calls and angry emails. | ||
| Not angry. I'm not going to tell you to do it. | ||
|
unidentified
|
Just calls and emails. Just you guys to pick. | |
| Politico is reporting about the conference call that the GOP had last night because my point is you don't see any – where's the Republicans out here lambasting things? | ||
| Why has it got to be the war room? | ||
| And there's a quote from this thing, Olivia Beaver's quote, but there is pressure from some within the GOP conference to come down harder on Biden and Democrats and lay the blame squarely at their feet. | ||
| House GOP conference chair Lee Stefanik, Republican, pushed back against comments in the conference in favor of lowering the partisan heat during the House GOP briefing last night. | ||
| You morons. If you can't understand this in a half hour, you ought to be turfed out of here. | ||
| The math is not that complicated. | ||
| The bond math here is pretty simple. | ||
| Where is McCarthy? | ||
| Where's the leadership? This is a debacle, and your constituents have got a belly full of it. | ||
| We're not getting down in here, which you guys did in 2008, and stiff these people with this. | ||
| Cortez first, then Brett. | ||
| Yeah, Steve, by the way, I believe that's one reason why so many people on the right, unfortunately, good people, dependable people who share our values, but unfortunately they are focusing on the woke aspect of this, which again is immaterial. | ||
| Look, we hate woke, of course, and we hate corporate cultural Marxism. | ||
| That is not why SVB failed. | ||
| It's not why Synergy Bank failed. | ||
| It's not why more banks are very likely to fail. | ||
| It's not because of woke. I believe the reason though a lot of folks on the right are going there, Steve, It's because they don't understand this. | ||
| And they don't care to do their homework. | ||
| And it doesn't take long to understand what happened here in terms of a bond market revolt against Biden's inflation that made normally safe assets suddenly incredibly risky. | ||
| That is the reality. | ||
| That is the crux of what is going on here. | ||
| And the consequence going forward is that it has put the Fed into a trap. | ||
| Where we have inflation that is out of control, and yet if the Fed tries to fight that inflation, it risks massive bank failures. | ||
| Forget about the woke stuff. | ||
| That's not material. Exactly. | ||
| By the way, it wasn't people saying, but Steve, it's all these investments. | ||
| It's not their investments in these companies, the high-tech companies. | ||
| Yes, the venture things were scam, the loans, but that's not the point. | ||
| The point is it's Biden's economic policies and the government securities they held that blew a hole in their balance sheet. | ||
| Coupled with these uninsured depositors. | ||
| But it wasn't investments in the woke stuff. | ||
| That's all madness. | ||
| By the way, this is also the reason that the VCs didn't want to step in and actually do credit lines themselves. | ||
| They realized, hey, some of these things that get funded, the woke stuff, the Green New Deal crap that gets funded in good times, maybe gets on the short block. | ||
| Remember, we started this with the Gore Stuff during the Obama thing, when they were bailing all the Green New Deal stuff back then in the Obama administration. | ||
| Brett, you've been here. | ||
| Why are these guys? | ||
| It's Tuesday morning. | ||
| Where are the Republicans? | ||
| They've had this thing. I was on Tim Pool Friday night with Bishop and with the Gates. | ||
| They were on board. I said, they're going to put you over the abyss. | ||
| And say, if you don't step up here, the country's going to get sucked down. | ||
| Where is the Republican Party, particularly in the House, sitting there and going, hey, screw you. | ||
| You're not going to get this done. | ||
| We're going to call everybody in here for a hearing and investigation. | ||
| You're not going to back this up with bank fees that our constituents are going to pay. | ||
| Where's leadership right now? | ||
|
unidentified
|
Well, they're just wimping out. | |
| We've given away entire sectors of the economy. | ||
| We've socialized healthcare. | ||
| We got big everything, right? | ||
| Big tech, big auto, big planes, big market. | ||
| Banking is probably one of the few sectors where we still have some support in terms of donors. | ||
| Supporting some of the Republicans, so they don't want to alienate that. | ||
| But this can be explained clearly. | ||
| The CEO of this Silicon bank had a video where his heart goes out to everyone. | ||
| He's walking away with a golden parachute. | ||
| He's going to walk away with a 20-year prison sentence. | ||
|
unidentified
|
Well, I hope. 100%. | |
| What are you talking about? | ||
| That whole thing is good. Yeah, his video was disgusting. | ||
|
unidentified
|
You never see anybody go to jail. | |
| It's always about systems and regulatory and all this business. | ||
| And the great thing about the market system is the failure of firms. | ||
| You're supposed to have 1,000 firms on the supply curve, not five. | ||
| We don't have a market system. Oh, I know. | ||
| That's what I'm getting. By the way, all the – and Ron – hold it. | ||
| Stop. All the libertarian, and Ron, on-rand crap out in Silicon Valley, the Atlas Shrug. | ||
| Hey, shrug this. As soon as they get a problem, they want to come to the collective of MAGA and please bail me out, mommy and daddy, working-class people. | ||
| They mock and ridicule working-class people every day of their lives. | ||
| Until they need a bailout, then they've got to come to the stability. | ||
| They've got to come to the folks that underwrite the system. | ||
| That would be you. That's where you're in the creditors committee. | ||
| Right now, 202-225-3121 is the United States Senate. | ||
| 202-224-3121. | ||
| Is the House of Representatives, please call right now to the switchboard and let your representative have a piece of your mind. | ||
| By the way, if you support this, call and say, hey, you're doing a great job. | ||
| Thank you, sir. | ||
| May I have another? Okay. | ||
| Thank you, sir. May I have another? | ||
| Why don't we start bailing out the shareholders and the bondholders, too? | ||
| Let's just go do that. If you like what you got today to bail out the depositors, go ahead and let's get some more. | ||
|
unidentified
|
I triggered you with the free markets, but two points. | |
| On the regulatory side, the left doesn't know any economics or finance. | ||
| You can put in any regulation you want. | ||
| You can fine-tune and regulate every breath these banks take. | ||
| They're going to learn how to cheat. | ||
| The guys are going to walk away with a golden parachute. | ||
| It doesn't matter what regs. You put in that law, they'll walk around that law, and they're smart guys. | ||
|
unidentified
|
And in point two, the lived experience. | |
| Of the folks watching this show is what's in the back of their head is we just shut down the entire economy. | ||
| We shut down the entire economy. | ||
| I'll tell you what's in the back of their mind. | ||
| How do I get to Birch Gold? | ||
| Philip Patrick had the busiest day in his 17-year career. | ||
| Honey, get out in the backyard. | ||
| Get that tomato can up and give me the Federal Reserve notes. | ||
| We're going to do a conversion process today, okay? | ||
| We're going to convert. Short commercial break. | ||
| Talk about conversions. The Church of America First is converting some folks. | ||
|
unidentified
|
All next. Better has arrived. | |
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| Okay, get together. I'm putting up stuff all night long. | ||
| And by the way, what I appreciate, I put up a bunch of stuff on Ron DeSantis and what he answered the question, Tucker Carlson. | ||
| I think Grace put a couple of them on Twitter. | ||
| And I got lit up. | ||
| And it's great. We're going to talk all about that. | ||
| And I love the fact that the hardcore America First and the hardcore, I love that kind of given. | ||
| I love it when you sit there and go, Bannon, you're being a wimp. | ||
| You're taking the bait, stiffen your spine. | ||
| Because I think I'm as hardcore as possible, but I need to be slapped around. | ||
| I need to be slapped around every now and again. | ||
| A bunch of stuff going on in the Third World War. | ||
| Number one, Zelensky has gone all in on Bakhmut. | ||
| Please, we've been covering Bakhmut pretty closely the last couple of months. | ||
| He's gone all in and knows that optically he can't lose this. | ||
| I think they're reporting 50,000 troops. | ||
| This is one of the great – it's the greatest battle, I think, of the 21st century. | ||
| It's a World War I type of artillery duel that's really taking high casualty rates. | ||
| But the Russians and the Ukrainian army to date still hold – although the things surrounded – somebody surrounded – They're still holding in. | ||
| Also, Point Loma yesterday, this big joint venture, the announcement with the United Kingdom, Australia, United States, building these submarines, the CCP. Also, a lot of news. | ||
| Cortez, let's start there with just give an overview. | ||
| Let's talk about where we are in the Third World War, and then we're going to get into... | ||
| The conversions were happening. | ||
| By the way, the Church of America First is always there for converts, right? | ||
| And we had a convert. We had a convert. | ||
| I think it's a convert, but I'll give the posse that's a semi-convert of Ron DeSantis, and we're going to talk about Ken Griffin also. | ||
| But give me your assessment of the reality we talked about forever, the basics of Trump's foreign policy. | ||
| Was to keep Russia, the KGB in Russia, from merging and partnering with the CCP in Beijing. | ||
| Because once that happens, it's only a matter of time before they partner with the mullahs in Tehran, Erdogan, Pakistan. | ||
| You've got a problem that we've never faced in world history. | ||
| Steve Cortez, your thoughts? | ||
| Correct. Listen, since the days of Richard Nixon, who I think was probably the most brilliant foreign policy expert to ever occupy the Oval Office, since that time, United States policy in Asia has been to drive a wedge between the two great powers of China and Russia. | ||
| We now see the exact opposite under Joe Biden. | ||
| He has, in fact, compelled them to seek out each other and to engage in a very close alliance, an anti-American alliance of Moscow and Beijing. | ||
| And the new news regarding this is that President Xi, he is entering effectively the power vacuum that has been created by Biden's failures. | ||
| And what I mean by that is that the new announcement is that he is both going to be speaking via phone, via videophone, to Zelensky and visiting with Putin. | ||
| So he is doing exactly what the United States should be doing, what a Responsible, real President of the United States would be doing, what Donald Trump would be doing. | ||
| I have no doubt, as I've said before, that he can negotiate an end to this insane war in Ukraine in a matter of days, okay, if we had his style of leadership and if we had that kind of negotiator in chief. | ||
| But this power vacuum, a power vacuum always gets filled. | ||
| And it is getting filled now by Xi. | ||
| He is effectively becoming the leader of the principal superpower of the world in many respects. | ||
| And that is simply the reality, the very unfortunate and tragic reality right now because of the abdication of Joe Biden, because of his complete dereliction of duty, his several created crises. | ||
| Crises plural, meaning the inflation crisis, the open border, and the needless escalation of this Ukraine situation. | ||
| So he is failing miserably across the board. | ||
| She is stepping in. I want people to understand that you're underwriting this, too. | ||
| Right now, The Economist, in fact, we're going to do a special on this. | ||
| The Economist finally catches up with the war room. | ||
| They talk about Taiwan, a whole special edition on Taiwan. | ||
| We're going to break this down with our experts to get into it. | ||
| But remember, you're underwriting the bank bailout, the administrative state's financing. | ||
| So you're underwriting that. | ||
| You're also underwriting the CCP. Our capital market's still underwriting. | ||
| We could take down the sea. | ||
| لاo Beijing could overthrow the Chinese Communist Party in Beijing in 100 days if you cut them off 100 percent from capital, you cut them off from the Swiss system, the ability to transfer money, and if you cut them off 1,000 percent of technology. | ||
| It's hard to do that when Sequoia, right, is one of the big financiers of Elon Musk in Twitter, and Sequoia is all over Silicon Valley Bank, and I think a third of the companies, a third of the startups of CCP, remember, your money, the government money got shipped To Beijing to make sure that they could bail out their own companies instead of letting those companies fail. | ||
| So you're underwriting, this audience is underwriting all of it. | ||
| Just remember, you're underwriting all of it right now. | ||
| Brett, give us perspective on this Third World War. | ||
| How far down, is this analogous to 1938 and 1939? | ||
|
unidentified
|
Yes, there's no limit on the downside ahead if we get things wrong. | |
| And you just kind of triggered me on Frank Gaffney and the Committee on the Present Danger and all the work they've been doing, showing that your pension funds are invested in Chinese weapons systems aimed at us. | ||
| I mean, it's stunning. | ||
| And Frank is utopian on his issue, like I probably am on economics. | ||
| He thinks it's a matter of if we get the word out to the people, they will shift. | ||
| I'm not as optimistic. | ||
| I think people kind of understand this, but it's just like the banking crisis and every crisis we have. | ||
| No one wants to stop the Titanic right now, and the deck chairs are moving around. | ||
| That's where this audience is the vanguard. | ||
| Remember, every time they go to a backyard barbecue, every time they go to the dinner party, every time they go to a PTA meeting, every time they're sitting in the stands watching the kids play sports, they're the ones that are most informed. | ||
| People are sitting there going, where did you hear that? | ||
| I didn't know that. Boom! | ||
| They're walking through how we're underwriting the debt crisis. | ||
| They're giving us sophisticated analysis of how this happened. | ||
| They understand that this is a third world war. | ||
| The whole purpose of this show is that this is a vanguard. | ||
| And you've never had a vanguard in this country, even in the revolution of the Civil War. | ||
| You never had a vanguard that was fully informed with the best information out there. | ||
| That, quite frankly, is better than...I mean, look at J.D. Vance. | ||
| He's a U.S. senator. He goes and talks to the senior people over there and says, hey, I'm wondering here, are you giving an implicit guarantee to all deposits? | ||
| And they say, well, we're working that through, right? | ||
| This audience knew this on Friday, right? | ||
| And this audience, that's why pick up your phone, get your email, and I'm not going to tell you what to say. | ||
| Just give you the information, but you better have your voice heard. | ||
| Give it to them with both barrels, as we used to say. | ||
|
unidentified
|
And the folks can catch up. | |
| Xi Jinping gave his 20th Communist Party meeting notes. | ||
| And they're turning inside. | ||
| They're going full-on Marxist-Leninist. | ||
| They got rid of all market reform. | ||
| They're trying to form a consumer. | ||
| That won't happen. And so our folks need to... | ||
| China may be cracking. | ||
| I think the demographics, all of it. | ||
| But they ain't going down without a fight. | ||
| Trust me. A big fight. | ||
| Okay, short break. Back in a moment. |
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