March 21, 2023 - Bannon's War Room
48:54
Participants
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| Speaker | Time | Text |
|---|---|---|
| This is the primal scream of a dying regime. | ||
|
unidentified
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Pray for our enemies, because we're going medieval on these people. | |
| I got a free shot at all these networks lying about the people. | ||
| The people 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. Bamm. | |
| Talk about if, as well. | ||
| We don't know, right, Jay? | ||
| We don't know. Meanwhile, Republican allies of former President Trump are moving to his defense. | ||
| Congressman Jim Jordan, an outspoken Trump supporter and chair of the House Weaponization Committee, sent in New York DA Alvin Bragg a letter asking him to testify about his, quote, decision to pursue such a politically motivated prosecution. | ||
| Oh, come on. That's hard. | ||
|
unidentified
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Get out of third grade. | |
| That's not even smart. | ||
| Who are these guys? | ||
| I don't know. Who are these guys? | ||
| It's not a pro among them. | ||
| House Republican leadership seems, at least for now, to be standing by Trump. | ||
| Conference Chair Elise Stefanik said yesterday... | ||
|
unidentified
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No, no, no, no. We're not going to play anything she said. | |
| Give me a second. We're not going to play anything she said. | ||
|
unidentified
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No, we're not going to... | |
| Can I just see a second? I just want to see a second. | ||
| No, I want to tell you why we're not going to play it. | ||
|
unidentified
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Why? Because she goes Harvard, by the way. | |
| I think she went to Harvard. | ||
|
unidentified
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Another one of these phony populace from an Ivy League school. | |
| They really have to do a better job screening their prospects. | ||
| I kind of want to see it. | ||
|
unidentified
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I think you have to face what's going on here. | |
| She says, oh, here's another example. | ||
| She tweeted, here's another example of the Justice Department or the DA or whomever leaking things that will attack Donald Trump. | ||
|
unidentified
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And George Conway just subtweeted and said, It was Donald Trump who released this. | |
| Like, the stupidity. | ||
| Into today's session, session highs on the S&P 500 right now. | ||
| Equity futures doing nicely, up eight-tenths of 1 % on the S&P 500. | ||
| Quick snapshot of the market for you. | ||
| Yields higher by seven or eight basis points, 356%. | ||
| On a two-year, up by 15 basis points now, 4.13 % going into the Fed tomorrow. | ||
| The two-day central bank meeting begins today. | ||
| If you want a quick look at First Republic, FRC, that name doing okay in the pre-market, up by 23%. | ||
| Not doing okay the last few days, last few weeks. | ||
| Let's be clear about that. I keep saying it. | ||
| Triple-digit stock two weeks ago, now just about double digits. | ||
| Secretary Yellen of the Treasury, she'll be speaking in about an hour and 40 minutes. | ||
| Here's the quote from her, from her remarks that we're expecting for her to deliver. | ||
| Our intervention was necessary to protect the broader U.S. banking system and similar actions could be warranted if smaller institutions suffer deposit runs that pose the risk of contagion. | ||
| Lisa, as soon as that came out, we both said, is that sufficient? | ||
| What's the policy backup, the follow through that's going to come off the back of those comments? | ||
| Well, it's sufficient if you take a look at very early trading of certain bank stocks of medium-sized banks. | ||
| And that's, I guess, what people are looking toward, right? | ||
| I mean, you said this is basically one of the indicators that probably Federal Reserve officials are looking for today. | ||
| They're parsing through the tea leaves of bank stocks. | ||
| Exactly. So we're seeing right now, you know, Western Alliance shares up about 7 percent. | ||
| You're seeing PacWest also seeing a pretty big pop. | ||
| So some of these other regionals that have been under pressure getting a bit of a lift. | ||
| Is it enough to be sustainable? | ||
| Who knows? We don't even know what the problem is, though. | ||
| What is the problem? It's that deposits can leave quickly and that they're invested in things that are rate sensitive and that possibly they haven't hedged sufficiently against that. | ||
| So how do you solve that issue? | ||
| And we don't know how deep that goes. | ||
| We don't. Does the Fed know when they sit around the table today? | ||
| Do you think they know how deep this goes? | ||
| You raised the question. Didn't they have any indication of that before Fed Chair Jay Powell got before Congress and said, I don't know, 50 basis points seems like it's possible. | ||
| It's kind of remarkable that you opened the door to 50 basis points and we had bank failures two days later. | ||
| Isn't that kind of crazy? It raises a question of how much more intel do they actually have? | ||
| And how much did they understand the imminence of this kind of collapse? | ||
| Tuesday, 21 March, in the year of our Lord, 2023. | ||
| We've got a lot to get through today. | ||
| We're going to get... By the way, I want to give a shout out to Bloomberg TV. Let's bring in Cortez, Lisa Abramowitz. | ||
| I think she's the smartest person on all global television, Cortez. | ||
| She always cuts to the heart of the matter. | ||
| When you hear all this Kant and all this spin in financial markets and happy talking, you see Morning Joe. | ||
| That's a clown show. They're putting big red noses on a clown thing. | ||
| It's a clown show. She always cuts to the heart. | ||
| She goes, hey, tell me what the problem is here. | ||
| She said it right there. | ||
| We're now two weeks into this. | ||
| Here's the only thing we know, ladies and gentlemen, that's why we want to play those cuts. | ||
| Here's the only thing we do know, that you're backstopped because you're underwriting it all on a global basis. | ||
| Whatever spin you hear, it's on your shoulders. | ||
| Steve Cortez, tell me about Abramowitz first, and then let's talk about where we are today. | ||
| Yeah, listen, so as somebody who's not just been in financial markets, but I've been in the cable TV world for a very long time, I regularly tell people that other than War Room, the only thing worth watching is Bloomberg TV. And people can't believe that, and a lot of my right-wing colleagues get mad at me because they despise Michael Bloomberg, as I do, but he runs a pretty good network that puts out a lot of solid information without all kinds of narrative spin. | ||
| Of course, the exact Polar opposite of Morning Mika, which you showed there. | ||
| I think it's important, by the way, for us to pay attention to Morning Mika, not because you get any reasonable information. | ||
| You do not. It's completely propaganda. | ||
| But I find that Morning Mika literally writes the script for the corporate media for the rest of the day. | ||
| So you find out what they're saying, what their slogans are, where they're focusing, what their smears are. | ||
| And for the rest of the day, they effectively write the script. | ||
| So it's useful from that perspective. | ||
| Particularly for those of us who are deeply involved in the game. | ||
| By the way, a couple points there. | ||
| It was fascinating to watch Joe completely mansplain to his wife and tell her on air, you are not playing the clip that you want to play as a co-host on the show, first of all. | ||
| But secondly, I also love the dig at Elise Stefanik because she went to Harvard, right? | ||
| And he called her a phony populist. | ||
| Because she went to Harvard. | ||
| Well, I'm not sure if he's aware that somebody else who's on air with me right now went to Harvard. | ||
| That would be Stephen K. Bannon. | ||
| So a lot of us in the populist movement went to these fancy schools. | ||
| But hold it, hold it. | ||
| You went to an Ivy equivalent, as we call it. | ||
| Or Ivy adjacent, I guess. | ||
|
unidentified
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I went to the Catholic. It's a cover... | |
| It is Catholic. | ||
| You had the church between Holy Cross and Georgetown and the Catholic Ivy. | ||
| It's revealing, Steve. | ||
| It really is. These people, they consider you to be part of the club, and they consider it some sort of heresy if you leave the club, right? | ||
|
unidentified
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Or if you use your inside knowledge. | |
| You're an apostate. | ||
| You're an apostate. This is like somebody that went in the Middle Ages that was Catholic and maybe became a Protestant or worse, just left the faith. | ||
| You looked at it horribly forever. | ||
| I want to go back to your thing about The Railhead. | ||
| The reason we play so much Morning Joe is, and by the way, as you know here in the war room, we call it Morning Mika. | ||
| And I think it's a perfect example of why it's got to be renamed Morning Mika. | ||
| No, first of all, she's the brains of the operation. | ||
| He's just the side piece. | ||
| I tell people, if you want to hear what the conventional wisdom is in the imperial capital, it's Morning Joe. | ||
| And it's not just the politics, which they always get wrong. | ||
| They're always wrong, but you've got to hear what they have to say because you see what your enemy is laying out. | ||
| They bring in Andrew Ross Sorkin for the finance, and they bring in David Ignatius and these other, Richard Haass in this crowd, so they get the neoliberal neocon world perspective is right there. | ||
| And man, they hate populism. | ||
| Yesterday, the whiff of populism just drives them nuts. | ||
| But I want to go back to the reason they're calm and the reason the stocks are up. | ||
| Ladies and gentlemen, if you take away anything from today's show, is you are underwriting all of this. | ||
| They have basically spread on a global basis now. | ||
| They've pumped. They've done quantitative easing, which is, you know, forcing liquidity into the system. | ||
| Liquidity just being good old American cash, right? | ||
| Federal Reserve notes from Switzerland to Tokyo to Brussels, the ECB to the Bank of England, all of it. | ||
| And they've opened the discount window. | ||
| At the Fed, and so they're pumping into the carcass of the American banking system all over, and that is on your shoulders. | ||
| That'll lead to massive inflation. | ||
| It's going to lead to devaluation of the dollar, the rolling devaluation they're doing every day on you. | ||
| The spread is, Cortez, I think I can guarantee... | ||
| You know, we ought to do the over and under. | ||
| We ought to do the guarantees now. | ||
| We ought to start doing these side bets. | ||
| We ought to get something in Vegas, some bookie in Vegas to do it about how many months is now Biden's regime going to go with negative real wages, right? | ||
| Because you can just tell what they've done to try to salvage this carcass. | ||
| Tell me, and you got Ackman and a bunch of... | ||
| So here's the thing, folks. | ||
| You're the head of the creditors committee. | ||
| You're underwriting all of this, right? | ||
| Worse than 2008. | ||
| And tell me how the lords of the manor. | ||
| The lords of the manor now are saying, well, maybe we don't. | ||
| Maybe it's time that we stop going after inflation. | ||
| Walk me through how Lord Ackman. | ||
| What is Lord Ackman's theory of the case here, brother? | ||
| Yeah. Lord Ackman, the oligarch, he's now begging the Fed to stop fighting inflation. | ||
| The very inflation that the Fed had an instrumental role in creating, by the way. | ||
| But the Fed, to its credit, has finally found religion and started fighting the very inflation that it helped to inflict upon the American people. | ||
| It may now be stopping or stopping extremely soon. | ||
| I think there will be probably a perfunctory 25 basis point, 0.25 % increase tomorrow. | ||
| We'll see. There's a lot of debate about whether they do anything, whether they go 50 basis points, whether they go 25. | ||
| I think they probably take the middle road. | ||
| But Bill Ackman, Who is a billionaire hedge fund financier, put out a very lengthy tweet yesterday, more of an essay really than a tweet, begging the Fed to not raise interest rates. | ||
| And it's very similar to what he was doing last weekend. | ||
| And there you can see how long Tweets were supposed to be posts, right? | ||
| They were supposed to be quick. Unfortunately, the platform now allows folks to write long, long essays. | ||
| It doesn't even have to be a thread. That's one single tweet you're looking at there. | ||
| But what Ackman says effectively in that is very similar to what he said the previous weekend when he was begging the federal government to guarantee venture capital firms In Silicon Valley, some of the worst people and organizations in the world, people who have plenty of money, who could have easily solved the liquidity problems of the SVP depositor community themselves if they chose to, if they were willing to do the honorable thing. | ||
| They didn't want to, of course. | ||
| They wanted to be on the backs. of a single working mom waitress in the Central Valley of California or an iron worker in the Midwest of the United States. | ||
| Now, similarly, what we have from Ackman is he is literally begging the Fed, please stop fighting inflation. | ||
| Now, Ackman can deal with inflation, okay? | ||
| Rising prices might be annoying to an oligarch, but they don't change their lives. | ||
| Not one iota, okay? | ||
| It doesn't even have to be at the level of oligarch, just well-off people. | ||
| It might bother a law partner that his gas fill-up is getting more expensive, but it doesn't change his life. | ||
| But for working-class people, the consequences are so much more material and, indeed, life-changing. | ||
| That's why we have, for the first time in American history, a trillion dollars of credit card debt with delinquency rates for subprime borrowers rising rapidly. | ||
| Interest rates on that credit card debt, of course, at the highest level ever. | ||
| Okay, that's the reality. And not just a trillion dollars, but also the biggest increase ever in the last quarter of Fed data on credit cards. | ||
| So regular Americans are tapped out. | ||
| They cannot handle this inflation. | ||
| They cannot afford the necessities of life. | ||
| Forget about the luxuries. And yet, here we have Ackman, an oligarch who is shamelessly taking to public platforms and saying, hey, Fed, we need you to stop fighting inflation. | ||
| This is the scenario we're in. | ||
| This is the mess we're in, and it's a created crisis. | ||
| It is because of Joe Biden's inflation. | ||
| Please remember that, folks. Look, the wokeness, absolutely, it's a problem. | ||
| Corporate cultural Marxism is a cancer upon our society, needs to be dealt with, but that is not the railhead here. | ||
| That is not the headwater of this crisis. | ||
| It is Biden's inflation, and the consequences have been Intense and severe, and they are worsening, Steve. | ||
| This is why it's the interconnections that could be linked to the debt ceiling debate in the spending bill. | ||
| This is why the 6.8 trillion, we told you they're not serious people. | ||
| They actually were called madmen. | ||
| We had Richard Stern, who's no guy with his hair on fire. | ||
| He runs the balanced budget effort over at Heritage. | ||
| He came on the show, I think, two Saturdays ago after the Friday that Biden presented. | ||
| He called him a madman. He said, and this is before, quote unquote, the crisis. | ||
| Here's where we're going to get to, is that nothing is solved here. | ||
| Nothing is solved. All they've done right now is taken your money as a backstop and calm the elites. | ||
| The elites, which they get very scared, They're calm right now. | ||
| And they're calm because they know the full faith and credit of the United States. | ||
| And remember, the full faith and credit, if you want to see the mysterious full faith and credit, this ephemeral thing they talk about all the time, look in the mirror right now. | ||
| You in this audience are the full faith and credit of the United States. | ||
| Always remember that. | ||
| Once you embrace that idea, the whole thing changes. | ||
| Because then you realize, well, hang on, if that's the case, Aren't I in charge? | ||
| That's what this show is about. | ||
| The empowerment of you to finally take a stand and say, we've got to stop this madness. | ||
| And the elites, don't think the elites know anything. | ||
| We're going to talk a little bit about what's happened in the last couple of days on the weekend and how it's going to roll through over the next couple of days to put you once again ahead of the curve. | ||
| In the war room, Steve Cortez and I will join you back here in just a moment. | ||
|
unidentified
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Here's your host, Stephen K. Mann. | |
| We're going to get into polling and the president's, this current fiasco, ridiculous fiasco in New York later in the show. | ||
| Mike Davis joins us. Boris is going to join us. | ||
| Lindell is going to join us about what's happening in Arizona today. | ||
| We're going to get to all that. I don't want to put too much weight onto the New York thing. | ||
| It's so outrageous, so egregious. | ||
| It is crossing the Rubicon because it shows you that the elites... | ||
| Would rather burn it all down and rule the ashes, right? | ||
| Rule the ashes than look to do anything that's for the good of the country. | ||
| And you can see this. This part here, Cortez, I want to go back to Ackman because here's what's very important. | ||
| The choices they have is to continue flight inflation and continue to raise rates. | ||
| To fight that inflation, they're jammed up. | ||
| They can't do it because the government security is held by the banks. | ||
| Right now, remember, Andrew Ross Sorkin says there's $620 billion. | ||
| There's studies and analysis that $2 trillion are sitting on the balance sheets of these banks, right? | ||
| And they're Biden bonds. | ||
| Remember, once again, just write this down with your number two pencil. | ||
| The massive spending of American Recovery Act and all of it, I think it's $5 to $8 trillion of additional spending over and above the budget deficits, right? | ||
| The $5 trillion, he'd build back better, all that. | ||
| That $5 trillion, along with the McConnell-Republican collaboration, always remember that. | ||
| That spending led to the burning dumpster fire of inflation, of which we said from day one this is going to happen. | ||
| They all denied it, right? And either too stupid or just... | ||
| on purposely just look the other way that so the spending the Biden spending to the Biden inflation then he got the Biden bonds the the the treasuries remember the 10-year treasuries and people bought these at the low interest rates around when President Trump was there those spike to four percent and other bonds higher their value is inverse they drop to you know 30 cents on the dollar like an SVB's Balance sheets. | ||
| So the bonds, right? | ||
| And then you had the banks. That's where you have. | ||
| You had the Biden banks now. | ||
| It's the new Hoovervilles. | ||
| Remember Herbert Hoover in the 1930s after the stock market crash when the Great Depression hit, you know, his policies weren't working. | ||
| People were living in shantytowns. | ||
| They called them Hoovervilles. | ||
| This is why it's Biden's spending to Biden's inflation, to Biden's bonds, to Biden's bank. | ||
| Wokeness is all in there, too. | ||
| But trust me, that's the timeline of the jammer. | ||
| Now, here's the thing. The Federal Reserve has two choices. | ||
| They continue to raise rates to fight inflation, the traditional methodology. | ||
| They do that. The bonds become worse less. | ||
| The hole in the banks become worse. | ||
| The banks, by the way, who aren't giving you anything on your savings account or your money market, people start fleeing to the bonds. | ||
| They have higher returns. You have depositors leaving. | ||
| You have a hole blown in your balance sheet because if you have to mark these things to market, you're underwater, right? | ||
| So all the regulators look the other way, hope another day comes. | ||
| But what happens on the burning dumpster fire of inflation, and talk about core inflation here, particularly for working people, middle-class people, if you're a wage earner, the burning dumpster fire of inflation, you think it's a tax. | ||
| It's a regressive tax on you. | ||
| And here's the thing. Since you're underwriting the whole system, you think you get a little something for the effort, right? | ||
| Wouldn't you get a little something for the effort? | ||
| No, no, no, no, no. That's not going to happen. | ||
| What they're doing, and these are, as Peter Navarro said yesterday, when they open the discount window, right, and let the Federal Reserve just shove money into these banks, into these insolvent banks. | ||
| Let's use the I-word, the insolvent banks. | ||
| And they open the window so that Swiss National Bank and the Bank of Japan and the Bank of London can all draw down. | ||
| So they'd say, oh, we've infused cash all over the system. | ||
| That is a ticking time bomb of, wait for it, more inflation, right? | ||
| Because they don't give a damn about you. | ||
| They could care less that you're getting eaten alive every day by regressive tax. | ||
| This is the way the system works, in a nutshell. | ||
| Steve Cortez, is my analysis of this situation fairly accurate? | ||
| Yes, it is accurate. | ||
| And I think, if anything, you're maybe not being intense enough regarding just how dangerous this is for regular Americans. | ||
| By the way, regarding that discount window, we've shown the chart several times. | ||
| Remember that not only did that borrowing by the banks from the American people, okay, that the Fed is us, they're borrowing from the American people, the Fed balance sheet, not only did that borrowing spike, it is at a far higher level than at the worst levels of 2008, 2009. | ||
| So think about that for a second. | ||
| Think of how scary the economic scene was in 08 and 09. | ||
| Well, right now, according to that metric, at least, of discount window borrowing, we are at a more perilous moment than we were in 08 and 09. | ||
| And of course, back then, thankfully, at least we entered that crisis without significant inflation in the economy. | ||
| We have the exact opposite now. | ||
| So, Steve, to your point about costs for staples, for the necessities of life for working class people. | ||
| This most recent CPI report that we got out, which was a very disappointing report. | ||
| One of the worst elements of it, I think, when you look at the individual items, what I often refer to as the have-to basket, things that you need to live, not luxuries in life. | ||
| Three of the most significant ones were at double-digit, year-over-year increases. | ||
| That was groceries, electricity, and other utilities. | ||
| All three of those We're still at double-digit year-over-year increases. | ||
| And that, Steve, was with the Fed because it's a backward-looking report. | ||
| That was with a Fed that was still pretty aggressively trying to fight inflation. | ||
| So if we're getting double-digit inflation for staples with a Fed that was being pretty hawkish, now that the Fed has been cornered and neutralized and trapped effectively, what's going to happen to that inflation from here going forward? | ||
| And that's why, Steve, I've said this before. | ||
| I'm not trying to be alarmist. | ||
| But this is, I think, simply reality. | ||
| We could be looking at a situation where if we have sustained double-digit inflation for the staples of life, for these kinds of necessities, It's not just the economic calamity that is a risk. | ||
| I think there is a risk of societal upheaval because regular working class people are already in a terrible place economically, in a bad place mentally, quite frankly. | ||
| And we know this from the surveys about confidence. | ||
| If we continue to pour punishing inflation upon them, the consequences will not be calm. | ||
| I guarantee that. I want to go to – you're absolutely correct, and I agree with you 100 percent on the societal issues of it. | ||
| You're going to wipe out – this is why it's also – the storms here were in it, and you – it's not going to be easy to turn around. | ||
| It is – you can turn this around. | ||
| But you've got to make some tough calls, right? | ||
| The first tough call, the first thing you're going to see, the canary in the mineshaft here is going to be the debt ceiling debate now. | ||
| I will tell you, in fact, if you go to my getter account, Politico has even got a story today. | ||
| If you go to my getter, you can pull it up, my crack team. | ||
| I didn't get it to you earlier. The Hill had it over the weekend, and then Politico had it today. | ||
| The prioritization of payments plan. | ||
| Where have you heard that before? Maybe in the courtroom? | ||
| They're all freaked out now because the Ways and Means Committee is basically going to pass this out of committee and try to take this to the floor. | ||
| That, hey, you can never have a default. | ||
| You're always going to pay the cash or the face amount of debt. | ||
| You're going to pay all Social Security, all Medicare, so no seniors. | ||
| And then we're going to have a discussion. | ||
| And the Democrats are freaking out. | ||
| Because I understand that this is a way to take it off the table. | ||
| We have to draw a hard line. | ||
| This debt ceiling debate goes back to the chain of events, the critical path. | ||
| It's the spending that is the railhead of all the problems. | ||
| And it makes sense. | ||
| This modern monetary theory, let's say this, like many theories that came out of France, doesn't quite work, right? | ||
| The other thing I want to talk about, Cortez, we've got a lot to get to, but I've got to talk to... | ||
| The audience has to understand something. | ||
| You're sitting here, and remember, post-war... | ||
| If you talk about Ukraine or these geopolitical situations with the neoliberal neocons, you get thrown in your face right away. | ||
| Well, you guys are anti the post-war liberal rules-based order. | ||
| Rules-based order. | ||
| Just remember that. It's rubbed in your face all the time. | ||
| You're insurgents, you're insurrectionists, you're populists, you're nationalists, you're going to tear up these great institutions and these international things. | ||
| The post-war international rules-based order, right? | ||
| Rules-based order. Let me tell you something, ladies and gentlemen. | ||
| This is the law of the jungle right now. | ||
| There are no rules. | ||
| And the perfect example, Steve Cortez, you've done this for a lot of time. | ||
| You spent a lot of time in Switzerland, right? | ||
| It has always been the railhead of the pristine premier bankers in the world, right? | ||
| The guys who can launder money for every third world dictator, for the Nazis, for the Bolsheviks, for everybody, for every American that wants a numbered bank account, right? | ||
| They're the creme de la creme. | ||
| This weekend, and this is what we keep, the shotgun marriage of Credit Suisse and UBS stirs bondholder anger. | ||
| The Wall Street Journal lead story is Credit Suisse bond wipeout threatens $250 billion market. | ||
| Now, it's not so much the capital markets aspect of it, is that the Swiss on Sunday, the Swiss authorities on Sunday just decided to get this done because if the market opened on Monday and they didn't have these banks put together, It would have been a free fall. | ||
| They took the laws and rules of Switzerland that have been there from time immemorial in banking, and Steve, they just tore them up. | ||
| They just tore them up and said, hey, you know, we got a new set of rules, right? | ||
| Equity holders don't get to vote. | ||
| Bond holders are going to get wiped out. | ||
| The same exact thing that happened at Silicon Valley Bank. | ||
| All your bettors are sitting there saying, MAGA, you're the problem. | ||
| You know, you guys in bib overhauls, you're knuckle-draggers, you breathe through your mouth. | ||
| The hobbits don't know anything about the world. | ||
| You know, they're on here in these business shows with the knitted brows and, you know, talking high finance and highfalutin concepts. | ||
| They will change the rules at any time it suits them and then just look at you and lie to protect themselves. | ||
| Is anything about that incorrect, Cortez? | ||
| You know the Swiss. For that to happen, and you've seen it happen with the Treasury Secretary and the Fed last week, that's why Lisa Abramowitz sitting there going, can somebody tell me actually what's at the core of this? | ||
| Because nobody's explained it yet. | ||
| Steve Cortez. Correct. | ||
| The ruling class, both here and globally, constantly castigates our movement because we supposedly want to destroy norms and precedents. | ||
| But the reality is that the ruling class changes the rules on the fly whenever it needs to, to protect the prerogatives of the potentates, of the powerful, of the oligarchs. | ||
| That is the reality, both here in the United States And as we saw over the weekend in Switzerland. | ||
| And you're also right, Steve. | ||
| I spend in my hedge fund days a lot of time in Switzerland, particularly in Geneva. | ||
| Geneva in many ways is really the epicenter of all the worst aspects of globalism. | ||
| It's sort of the legion of doom of globalism is in Geneva. | ||
| It is a place that is physically beautiful, but underneath that physical beauty is a lot of actual rot and a lot of incredible corruption. | ||
| It was incredibly telling and really sad for the country of Switzerland That they had to go hat in hand to the Arabs to beg for money and were refused, by the way. | ||
| So if I were a Swiss deplorable, I'd be pretty dang angry about what has gone on in my country. | ||
| Hold it, hold it. You ever find an Arab that doesn't want to put money into a Swiss bank? | ||
| I've never seen that before. | ||
| From the royal family, that's their stock in trade, getting it out of the earth. | ||
| You know, cashing it out and not putting it back in their country, parking it in Switzerland. | ||
| And they said, hey, how about this? | ||
| No. Short break. | ||
| Back in a moment, Steve Cortez. | ||
|
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Here's your host, Stephen K. Vance. | |
| Okay, two things. | ||
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| But he's got big sales everywhere and tons of buy one and get one free. | ||
| Go check it out today. Mike will be here in the second hour of the show to talk to us about Arizona. | ||
| The Supreme Court's going to meet today. | ||
| In fact, Carrie Lake's prayer service starts 1030 to noon out in Arizona. | ||
| Make sure you go to her site, Moe and Captain Bannon Grace, if you can get that and link to it to make sure everybody knows about this. | ||
| So go check it out. Also, birchgold.com slash Bannon. | ||
| Totally free. The third installment, The Debt Trap. | ||
| Very proud of the fact we started working on this one. | ||
| The whole series we started working on a year ago. | ||
| This one we started working on mid-November about the debt ceiling. | ||
| And it's more relevant today than it was then. | ||
| Get it? You've got to immerse yourself. | ||
| You have to understand money. | ||
| We're going to teach it to you because we're going to revert back to the 19th century. | ||
| This is about the politics of money. | ||
| Who controls the money supply? | ||
| Right now, you're the underwriter, but you have no control of the situation. | ||
| That is fundamentally what has to stop in this country, ending the Fed and ending this entire mechanism they've got. | ||
| I want to make sure, and this is why I've toned it down a little bit today, yesterday with everything happening, because I want to make sure people can start, because I understand a lot of this stuff is very foreign to you, but you must understand it for your own personal well-being, your family's well-being, your community's well-being, and your nation's well-being, because we've got to sort this mess out. | ||
| Or we're going to have generation after generation here. | ||
| You're going to have 10, 20, 30 years of Japan, the lost decades. | ||
| Somebody asked me to think that, remember, here's one thing. | ||
| They will attempt to change the rules at any time. | ||
| To protect them and push more of the responsibility of underwriting this to you. | ||
| And it's going to continue to cause inflation. | ||
| They're not going to fight it because they don't care. | ||
| You have to basket at 10 or 12 percent, and so your wages every month are down. | ||
| You get a nominal increase of 4 percent. | ||
| You do the math. You're 6 percent down every month and getting worse. | ||
| They don't care about that. | ||
| The thing of the insolvent banks, remember, there's 186 of these banks that are just like SPV. When we talk about the rates of those government securities, here's the scam. | ||
| They have not made any of these banks mark-to-market those securities. | ||
| Because if they do that, the banking system is going to go, oh my god, all of them are insolvent, all of them are upside down. | ||
| What they've done, and Cortez jump in here, what they've done, and you have right now Janet Yellen, Bloomberg's reporting, the Treasury, here's what they're working 24-7 on. | ||
| They're over Treasury working 24-7 to figure out a way To guarantee all the deposits. | ||
| That's $19 trillion. To guarantee all the deposits. | ||
| To guarantee them all. Now, the average bank account, I think, savings account in this country is $5,000 or something like that. | ||
| There's $19 trillion. Most of that money comes from the fat cats. | ||
| And I realize there are people in our audience that have more than $100,000 in the bank or more than $250 of your business, okay? | ||
| Even though you're MAGA, that's fantastic. | ||
| But they don't care about the little guy. | ||
| What they care about is the fat cat. | ||
| They want to protect those deposits. | ||
| And they're going to change, just like in Switzerland, with the prim and proper Swiss, right? | ||
| They're so prim and proper on the outside, and the banking guys are the most craven. | ||
| And you're talking about Geneva is the worst city in the world because it's got the UN back office, right? | ||
| The engine room in the UN is there, which is the worst. | ||
| Then you've got every... | ||
| It's the capital of money laundering in the world, essentially. | ||
| It's got every shady character in the world there on the banking side. | ||
| What they've done here in opening the Fed window to infuse the system with cash that's going to lead to another quantitative easing that will lead to more inflation, when they open the discount window, they make the banks put up something. | ||
| They make them put up those securities, Steve, at face amount at par value. | ||
| These are $0.30 on the dollar, $0.20 on the dollar securities right now. | ||
| The phony thing is they did, and this is entirely... | ||
| So in no way, if you're a banker, would you loan against a face amount of a note if it really trades at 20 cents? | ||
| If the bid I can get is 20 cents, hey, dude, that's the market. | ||
| The market's, you know, price is, as Cortez tells us, price is truth. | ||
| That's right. Right now at the Fed, the system's working on truthiness. | ||
| In fact, I tell you what, these memes, I see them all the time. | ||
| There's one this morning I saw, I started laughing so hard I was crying. | ||
| He put my dog up. | ||
| This one, he gets it all. | ||
| The dog says, sir, everything today is free because I can't do math. | ||
| That sums up, as silly as that is, As stupid as that is, that actually is the heart of the... | ||
| That is actually the reality right now. | ||
| It's the reality. They're giving it to people for free because they can't do the math or won't do the math or the math gives them a thing. | ||
| So, hey, sir, today it's all free. | ||
| That's the discount window of the Fed right there. | ||
| And remember, when they say the Federal Reserve, that is you. | ||
| emblazon this into your soul. | ||
| When you hear the full faith and credit, we hear these people pontificate, we can't, the death ceiling, we can't, we can't do, we'll be the full faith and credit of the United States. | ||
| Well, let's go ask, let's go ask the folks that are the full faith and credit of the United States. | ||
| That is you. That is the American citizen. | ||
| It's on your shoulder. | ||
| Steve Cortez, they're working over Bloomberg reports. | ||
| They're working over Treasury 24-7. | ||
| Janet Yellen started trying to figure out the problem. | ||
| What they're trying to do is figure out a solution that has the hobbits bear more of the risk to bail out the elites. | ||
| Walk me through that, sir. Yeah. | ||
| All of the risk and none of the upside. | ||
| Okay? Does that sound like a good deal? | ||
| Doesn't sound like a very good deal to me. | ||
| It's what happened to the deplorables in the 08-09 crisis, and it's what is at risk of happening and starting to happen in fact right now. | ||
| And, Steve, to your point about the elites, about the ruling class ignoring precedent, ignoring law, and changing the rules on the fly as it suits the ruling class. | ||
| If we're going to back every deposit in this country, that needs to go through Congress, okay? | ||
| We need to have laws changed to do that. | ||
| What they're really furiously working on, and I'm sure it was a very busy weekend at these agencies in Washington, D.C., they're trying to figure out how to do it by edict, how to do it by fiat, without the people's participation. | ||
| That doesn't sound very much like a republic, does it? | ||
| And your point here, too, about these risks, these additional risks, because bonds are not being marked to where they are truly trading right now, this is so important because price is indeed truth. | ||
| How much is something worth? Whatever it is, whether it's a bond or a work of art, it's worth what somebody is willing to pay for it, okay? | ||
| That's the harsh reality of financial markets. | ||
| Steve, when I first got into politics, and I'm still relatively new to politics, got in with Donald Trump, I couldn't believe in the political world how little people regarded data and evidence. | ||
| Coming from the world of Wall Street, if you wanted to make a presentation, if you had an idea, if you had a thesis, it better be backed with a lot of charts, a lot of numbers. | ||
| Even if it was wrong, there had to be a process. | ||
| When I got into politics, I couldn't believe how little of that exists in the political world. | ||
| So I think it's important for our movement to make sure we do rely On facts and numbers, because they matter. | ||
| And right now, let me tell you an additional risk, as if the banking system needed more. | ||
| It's not just the Treasuries. | ||
| It's other bonds which were considered to be very, very safe, which have suddenly been made, if not unsafe, at least very volatile, because of Biden's inflation. | ||
| And that is mortgage-backed securities. | ||
| Now, when I use that term, MBS, right, people probably have some really bad memories of 08 and 09. | ||
| It's not a similar situation to 08 and 09 because the quality of the mortgages are far higher now. | ||
| We are not a country, thankfully, of liar loans. | ||
| So the underlying mortgages are much sturdier. | ||
| However, Biden's inflation is so eroding the value of all bonds, including ones that were considered safe and were considered very high quality, that now this is an additional risk for the banks, because the banks largely, if they consider the bond to be something that will be held to duration, Steve, they don't have to market where it's actually trading right now, where they would have to sell it. | ||
| But here's the problem. If there are more runs on banks or pseudo-runs on banks, they have to sell them. | ||
| They have to sell them to raise the money. | ||
| And to this point, I want to talk about one firm in particular. | ||
| I'm not trying to pick on it because this firm may be fine, but the point is that we're not. | ||
| Hold on, hold on, hang on, hang on, hang on, hang on, hang on. | ||
| They have to do it unless the Federal Reserve just says, hey, we'll lend you money. | ||
| We'll give you money at the face amount of the bonds only 20 cents on the dollar. | ||
| This is my point. | ||
| It's a total and complete scam. | ||
| You can't do it. If anybody thinks you can walk to your bank or walk to even a leg breaker loan shark and do what the federal government and the Federal Reserve is doing right now, you're dreaming. | ||
| They are literally making stuff up as we go along, and it's totally funny. | ||
| That's why the dog's a good thing. | ||
| Hey, it's free today, sir, but I can't do the math. | ||
| They're taking your thesis, and instead of marketing, they're allowing them, oh yeah, I'll hold it to duration, right? | ||
| They're allowing them to take those bonds and actually infuse the system with cash that's only going to blow up as more inflation. | ||
| This is quantitative easing on testosterone, but go ahead, Cortez, I interrupt. | ||
| Yeah, no, it is. | ||
| And again, too, this is unfortunately an acceleration of what you've talked about previously, where Washington DC was at the same time both stoking inflation on the fiscal side, right, because of what Biden and Capitol Hill were doing, and then the Fed previously trying to fight inflation, right? | ||
| Almost counteracting forces within Washington, D.C. Well, you're now taking the Fed effectively into joining the fiscal side of Washington, D.C. in fomenting inflation and worsening inflation. | ||
| That's the reality, the consequence of this inflation. | ||
| But mortgage-backed securities, again, something that most regular folks haven't had to think about in a long time. | ||
| They're becoming a concern again. | ||
| I want to show you, if we can pull up chart number one, I want to show you a chart of Charles Schwab. | ||
| And again, I don't have an opinion on Charles Schwab. | ||
| This stock may very well be It's certainly been crushed over the last year. | ||
| That chart goes back one year. | ||
| But the Wall Street Journal noted that Charles Schwab holds $237 billion in mortgage-backed securities. | ||
| Now, that may be fine. | ||
| It may not be a problem as long as there's not a rush for withdrawals. | ||
| But if that does happen, as obviously happened to SVB, to Symmature Bank, if that does happen, these mortgage-backed securities are in all likelihood not trading at the levels Where it's currently being marked. | ||
| And again, I'm not just picking on Schwab. | ||
| A lot of firms have this position right now, have many of these positions. | ||
| But look at that stock price. | ||
| Here's my other point. Stock traders, Steve, are not waiting around to find out the answers to these questions. | ||
| They are saying, I'm out. They are dumping. | ||
| And if price is truth, if price is indeed truth, look at Charles Schwab, which as of last week's lows had been cut in half off of where it was a year ago. | ||
| This shows you that guys that have to make a living doing this are saying, hey, I hear all the happy talk. | ||
| I like all the theory. Get me out of this thing. | ||
| Concentrate and get me out of it. | ||
| This gets back to the core problem here is you have, and I want to go back, if you think about it, And I'm not picking on anybody, okay? | ||
| So don't take this as a shot at some of the Republicans, because I'm not. | ||
| But I want everybody in the audience that is a firm believer in the Republican, part of the Republican Party is the Constitution, the Constitutionalists, the Constitution. | ||
| It's got to be the Constitution. | ||
| And you know the names. | ||
| What Steve Cortez says right there, and this is why I did the Swiss Bank example and what SVB said, There is no chance they can wiggle out of this FDC. They have to go to Congress with this. | ||
| This has to be something that is actually debated, approved. | ||
| This is a massive underwriting by the American people. | ||
| And yet they're sitting up there right now because the banking industry wants it to happen. | ||
| It's a bailout. | ||
| It's a direct bailout of the banking industry. | ||
| And we're all my strict constructionists. | ||
| Where are they? They sound the banking committee. | ||
| They sound the finance committee. Have you seen anybody come to the phone or the microphone yelling and screaming? | ||
| McHenry was on CBS News on Sunday morning, and quite frankly, it was embarrassing. | ||
| Margaret Brennan's overhead, obviously, but it was just it was just more happy talk. | ||
| We're beyond happy talk. | ||
| We need people to look people in the eye and say, hey, here's the problem. | ||
| Here's a fix. You might not like it. | ||
| But once they do that, they're going to have to explain to the American people why the working people, why the wage earners in this country are bailing out the oligarchs and bailing out the banking system and bailing out the elites. | ||
| They have to look them in the eye and tell them. | ||
| Because up there right now, they're looking at another con, another scam, to basically put the screws to you and have you underwrite more malfeasance and incompetence. | ||
| If it wasn't incompetence, if these guys were actually putting money to work and it was working and growing the economy, maybe you can consider a discussion. | ||
| But it's not. It's not. | ||
| Short commercial break. | ||
| We're going to be back in the war room in just a second. | ||
|
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| It's time to say what you want, the way you want. | ||
| Download now. Well, you know, it's a free country, but let me just say this. | ||
| If this is not in our vital interest, what would be? | ||
| To have a guy invade another country, rewrite the map of Europe by force of arms, does this bring back any memories? | ||
| Sign an agreement, tears it up. | ||
| And he's gotten an arrest warrant from the ICC, which has done a great job. | ||
| And they want to arrest him because he's taken Ukrainian children, kidnapped them for their families, and sent them to Russia. | ||
| Other than that, this doesn't matter to us. | ||
| I don't want to live in a world where that crap goes on without punishment. | ||
| I want him to be punished. | ||
| I want him to be defeated. I want the Ukrainians to kick his ass. | ||
| And I want China to look and see what's coming their way if they're going to Taiwan. | ||
| I absolutely agree. | ||
| And I think President Biden has done an excellent job leading this coalition and by sharing our intelligence with them at the beginning, getting the coalition together before the war even started. | ||
| I think he would admit that was Yeah, I'm trying to be helpful. | ||
| I think the Ukrainians need F-16s yesterday. | ||
| I think I would do more on the military front, but we're in it together, right? | ||
| I want to help the administration where I can. | ||
| You know, you got Xi and Putin meeting in Moscow. | ||
| And that's scary because we don't want them... | ||
| You don't want them, you know, aligning together. | ||
| So I'd like to see Russia become a state sponsor of terrorism under U.S. law because anybody that provides material aid to a state sponsor of terrorism, any nation runs into sanctions. | ||
| And that would make it harder for China to ship arms to them. | ||
| So let's make it harder for China to help Russia in a cruel, barbaric endeavor to change the world for the worst. | ||
| Okay. Now... | ||
| Who's the funniest U.S. senator while you're there? | ||
| And I always say Lindsey Graham, and they always hate it because they're my crowd. | ||
| Can I tell him this? When you were running for president in 16... | ||
| Y'all remember that? Yeah, I remember he had... | ||
| You were the only ones there. You were like 2 % at one point. | ||
| Yeah, I peaked. | ||
| So one day I go in the Senate bathroom and I turn to you and I say, Lindsey, if I were a Republican, I'd vote for you for president. | ||
| And you said, that's my problem. | ||
| That's a true story. | ||
| So, you know, when you get our age, you have a lot of time to talk to people in the bathroom. | ||
| So, and yeah, that was my problem in a nutshell. | ||
| The Al Frankenwing of the Republican Party is not as big as you think it would be. | ||
| Let's talk about the border. Okay. | ||
| You and I worked on, you were one of the gang of eight in 2013. | ||
| In every gang you can be in, just about. | ||
| Yeah. This is in 2013. | ||
| We passed 68, with 68 votes in the Senate, comprehensive immigration reform. | ||
| And I thought that was a great bill. | ||
| I did too. And I think we need it. | ||
| I've heard you say recently, we don't have enough workers in this country. | ||
| We need immigration reform because we're a declining population, right? | ||
| People like me are probably not married. | ||
| I don't have any kids. I'm screwing it up for the rest of you. | ||
| So the bottom line is that we need to get a workforce that's more reliable, let people come here and work and make it a win-win. | ||
| We need to secure a border. | ||
| We need to open up America to merit-based. | ||
| Let me have it. That is one of the most evil, it is outrageous, this guy's around President Trump, and I'm very frank with the Trump, how do I say, high command on my thoughts on Lindsey Graham. | ||
| A poisonous individual. | ||
| Let's go back in time. Two things I want to, before I turn to Cortez, who I know has some thoughts on this. | ||
| In 2013, I was very proud to be part of the running Breitbart of the time that had the back of Michelle Bachman and Steve King and others that in the House of Representatives defeated that comprehensive immigration bill of Lindsey Graham would have destroyed this country even more rapidly as being destroyed today. | ||
| It was outrageous. | ||
| Okay? Outrageous. And Lindsey Graham also during that time, remember, he's the guy that went to... | ||
| In their government, a state-sponsored terrorism. | ||
| Look, the KGB guys are some of the worst people on earth. | ||
| But this is the same Lindsey Graham. | ||
| That went to the went to Cairo and was rubbing up on the Muslim Brotherhood and saying, oh, no, you can't call the Muslim Brotherhood, you know, terrorists at all. | ||
| They're all good when they took over the government there that lasted for about six months. | ||
| He and John McCain, the two war mongers. | ||
| And he's never wanted to call the Mexican drug cartels terrorists. | ||
| He fought the Muslim Brotherhood being described as terrorists. | ||
| Steve Cortez, you see him right there. | ||
| One of the worst people. | ||
| This is the problem we have. | ||
| The problem we have, he's a creep, okay? | ||
| He's a creep on many levels, okay? | ||
| You have creeps like this that are not just in the Senate, but you have creeps like this that, because of the South Carolina situation, is running down to Mar-a-Lago all the time to put more poison in the head of Donald J. Trump, Steve Cortez. | ||
| Lindsey Graham is just the personification of all the worst aspects of the Washington sewer. | ||
| As you saw right there in those clips, which I think are hard to even watch, but we must watch them because we have to be aware of who our real opponents are, and they often have an R after their name, as certainly Lindsey Graham does in this case. | ||
| His two great themes, his two great loves, his two great agenda items are war and amnesty. | ||
| And it comes out of his own mouth. | ||
| That's not my interpretation. | ||
| And regarding war, he simply doesn't care that the costs are going to be borne by regular Americans who are already suffering from inflation, can't afford the necessities of life, and yet we are sending $100 billion plus to escalate a conflict That risks tipping into actual all-out World War III. And on the war front, | ||
| by the way, he also seems to not understand why Xi and Putin are forming a close alliance, why they are physically together right now meeting, as if the United States had nothing to do with that, as if the policy failures of Joe Biden and the Washington foreign policy establishment didn't practically compel this new marriage, this newlywed romance of Beijing and Moscow. | ||
| It was the mistakes of the United States. | ||
| And then on the amnesty side, his other great agenda item, on the amnesty side, we have, as we've talked about, 24 consecutive months of declining real wages, crashing real wages for American citizens. | ||
| And yet Lindsey Graham thinks that importing millions of illegals into the country and millions more people he would legalize is going to help that situation? | ||
| Cortez, hang on one second. | ||
| We're taking a nice break. Just to that point, Don't bury the lead, brother. | ||
| Why does he want mass immigration? | ||
| Quote, unquote. We need a more reliable workforce. | ||
| We need a more reliable workforce. | ||
| You out there that are underwriting this entire mess, you've got to get more reliable workforce. | ||
|
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