June 23, 2023 - Bannon's War Room
48:51
Participants
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| Speaker | Time | Text |
|---|---|---|
| This is the primal scream of a dying regime. | ||
| 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 lie? | ||
| MAGA Media. I wish in my soul, I wish that any of these people had a conscience. | ||
|
unidentified
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Ask yourself, what is my task and what is my purpose? | |
| If that answer is to save my country, this country will be saved. | ||
|
unidentified
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War Room, here's your host, Stephen K. Bannon. | |
| The cliffhanger vote on whether Britain will stay in the European Union. | ||
| ABC's Lama Hassan now with the latest on what they're calling Brexit. | ||
| The official results are in. | ||
| The people of Britain have spoken, voting for a British exit dubbed Brexit, with almost 52 percent of the votes choosing to leave the 28-member European Union. | ||
| Immigration was at the forefront of the Leave campaign for Britain to take control of its borders and its economy, national identity and culture. | ||
| Make no mistake, this referendum is huge. | ||
| This result to Leave is monumentous. | ||
| A political earthquake with the financial ramifications uncertain. | ||
| The pound falling sharply, plummeting against the dollar, which of course will impact Wall Street and global markets when they open. | ||
| The Leave campaign hailing June 23rd as Britain's Independence Day. | ||
| It's that day. It's June the 23rd. | ||
| Seven years ago today, we went out. | ||
| We beat not just the British establishment, but the global establishment, despite every effort through Project Fear to frighten the life out of us. | ||
| Tactics, of course, they'd use again during lockdown. | ||
| Trouble is, the establishment never accepted it. | ||
| They never, ever forgave us. | ||
| And after three and a half years of wrangling and finally getting rid of Theresa May, Boris made a load of promises and I'm afraid his government didn't really believe in it. | ||
| We've been horribly let down on immigration, on the reduction of EU rules. | ||
| Frankly, the Tories have sabotaged Brexit. | ||
| Sure, we've left. And we're standing taller in the world. | ||
| And our financial services industry is bigger than it was, not smaller as predicted. | ||
| But the two big deliverables on immigration and regulations have been sabotaged. | ||
| I fear, under a Labour government, we may just have to fight this all over again. | ||
| Do you know what? If we do, we'll win again. | ||
| Happy Brexit Day. Fascinating. | ||
| People come up to me and go, you know, you used to be a conservative. | ||
| Are you a liberal now? | ||
| All the time. And I say, well, what would you like to talk about? | ||
| And we finished talking about my issues. | ||
| I go, you're pretty conservative. | ||
| I go, yes, please, please. | ||
| You need to frame this correctly. | ||
| And I'm dead serious about this. | ||
| Yeah. It's people who support democracy, constitutional democracy, versus people who are anti-democracy, who are against constitutional norms, who are willing to throw constitutional norms out the window for Donald Trump, who are willing to just turn a blind eye to January 6th insurrection because of Donald Trump, who are willing to say right now as Speaker of the House that it's okay that Donald Trump stole nuclear secrets. | ||
| I mean, this is democracy versus anti-democracy. | ||
| I'm going to say one of the things that really has surprised me over the past several years. | ||
| I've been bitterly disappointed by friends who were fellow conservatives who've completely crumbled and are now part of the anti-democracy forces, and they are. | ||
| You can judge them, you know. | ||
| Not just by their words, but more importantly, judge them by their deeds. | ||
| Judge them if they want to hold Donald Trump accountable. | ||
| Now, when Donald Trump... | ||
| You take Lindsey Graham. I came in in 1994 with Lindsey Graham. | ||
| I always considered Lindsey to be a friend of mine. | ||
| You know, Lindsey Graham... | ||
| He supported Donald Trump through Donald Trump saying he wanted his attorney general to arrest Joe Biden and Joe Biden's family two weeks before the election. | ||
| Supported him through all of that. | ||
| Supported him through the first impeachment, where he held up money and defensive weapons to Ukraine, trying to get dirt on a political opponent. | ||
| And then on January the 6th, January the 7th, he opposed him. | ||
| And then he was chased down a national airport by three people and a hound dog, and suddenly he went back to supporting the anti-democracy candidate. | ||
|
unidentified
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I think it's more than that. Knowing Donald Trump, it's more than that. | |
| Listen, everybody always says it's more than that. | ||
| It's not more than that. | ||
| They're not scared of Donald Trump. | ||
| They're scared of their base. | ||
| They're scared to be leaders. | ||
| They're scared to stand up in a town hall meeting and tell people something that people may not want to hear. | ||
| Keep their head down and continue telling them that. | ||
| They'll be surprised if they do that what happens. | ||
| But they never take that chance because they're such cowards. | ||
| But It's democracy versus anti-democracy. | ||
| I've got to say, Jonathan Lemire, I've also been surprised at some of the people who I would have thought would have gone along with a crowd who have stood up and been stalwarts, even though they're conservatives, standing for democracy and standing against their old party. | ||
| Because as John Meacham said, We really don't give a damn about what your tax policy is and what judges you're going to appoint if you don't support our constitutional republic. | ||
|
unidentified
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We can't let that happen again. | |
| The country won't be able to take it. | ||
| The country won't be able to take it. | ||
| So I just want to thank everybody. | ||
| I want to congratulate you all. | ||
| I may sit around and listen to Steve Bannon. | ||
| Because he's really been exceptional, a very smart guy, and everyone after him, too. | ||
| Everyone after him, and we'll always continue to go after him. | ||
| We have to win in 24. | ||
| We're going to turn around the country. | ||
| But you know we were energy independent. | ||
| Think of it. | ||
| Gasoline at $1.87. | ||
| We were independent with energy and we were super-indominant. | ||
| And we were getting ready to flip where we were going to make so much money with our liquid gold. | ||
| You know, so big as an industry, so big, so powerful. | ||
| We were going to be bigger than Saudi Arabia and Russia combined. | ||
| I got ANWR approved in Alaska. | ||
| ANWR approved in the United States. | ||
| I got ANWR approved in the United States. | ||
| ANWAR is the size that may be bigger than Saudi Arabia. | ||
| Ronald Reagan couldn't get it done. | ||
| Bush, of course, couldn't get it done. | ||
| Okay, welcome. | ||
| We got a lot to go through today, and we're gonna get it all done. | ||
| We're gonna chop a lot of wood here. Friday, 23 June, Year of the Lord, 2023. | ||
| Right there, start off, it's the 7th anniversary. | ||
| Dave Brett's my wingman for both hours. | ||
| Peter Navarro is going to be here with the author, what is it, Jokar? | ||
| It's going to be at 5 o'clock. | ||
| I'm going to be at 6 with Dave Ramaswamy, I think Natalie Winters, Jane Zirkle. | ||
| We are packed today, wall-to-wall for the four hours. | ||
| Brad's going to be my wingman this morning, and we've got a lot to go through. | ||
| The collapse of the education system in this nation, economy, we've got E.J. and Tony from the Steve Moore Group and also over at Heritage. | ||
| Navarro's going to join us. | ||
| Bloomberg's story on the collapse of the ticking time bomb of commercial real estate. | ||
| Garrett Ziegler, this amazing and quite frankly shocking tax deal for Hunter Biden, who was sitting there globbing around last night, I think humiliatingly, in front of Modi at the state dinner for Modi. | ||
| In fact, Dave Romaswamy is going to be up here to break the whole thing down. | ||
| The White House visit and the state dinner. | ||
| So let's get into it. Do we have Ed Puzwali? | ||
| Couldn't get him up? No, let's get AJ. Okay, well, hang on a second, but I want to start. | ||
| We'll get Ed. The reason I wanted to start today, the reason I asked you here. | ||
| Because Liberty is one of the finest universities in the country. | ||
| You got Hillsdale, you got Liberty, you got a couple others that really are the leading edge of education. | ||
| And I thought on the seventh anniversary of Brexit, and you remember Brexit was the foreshadowing of the Trump victory seven years ago in June, complete upset. | ||
| Rahim's going to be with me tomorrow. | ||
| We're going to try to get Rahim Day. Rahim was the head of the Nigel Farage effort on Brexit, which did a thousand times more than Boris Johnson. | ||
| It was Nigel Farage that conceived it, brought it about, etc. | ||
| But that was the foreshadowing of the massive Trump victory. | ||
| Seven years later, there's even bigger kind of things going on under the surface. | ||
| And we want to thank President Trump for the kind words last night about he's a War Room listener and watcher. | ||
| At Cynthia Hughes, they had the Patriot Freedom Project up there with Louie Gohmert, Jeff Clark, Bruce Kowicz, that guy's one of the best influences out there. | ||
| So, Pozwali was going to come on because Ed, and we had a technical problem, so hopefully tomorrow, Monday. | ||
| But I know you got some charts. | ||
| And here's what I want to get into for the War Room audience is that It's been so busy, we haven't gotten a chance to get to it. | ||
| I think the polling or the numbers came out on Monday or Tuesday. | ||
| It is jaw-dropping, these numbers for American education. | ||
| Liberty is one of the finest. | ||
| You've been dealing for years with your young students, your young scholars coming from the public school system, from the private school system, from the charter school system, and from the home school system. | ||
| You've got some charts. You want to walk us through some of the things on this? | ||
| Yeah, if Denver wants to pull up, there's a black chart with the NAEP test scores. | ||
| And just education in general, right? | ||
| The main thing you want to look at, we talk about the real economy. | ||
| You've got to have a target in mind. | ||
| And the target, since the rabbinic tradition and the Greeks, has always been the pursuit of truth. | ||
| And so Liberty and these Hillsdales and whatever, they have not lost sight of what the target. | ||
| We're aiming at truth. | ||
| The Greeks set up the quadrivium and the trivium, the liberal arts system of education. | ||
| Harvard's motto in 1640 was truth for Christ and church. | ||
| Go read, parents, and I'm serious on this, when you're looking at competing schools, go look at the mission statements. | ||
| And if all you see is a word salad that you really don't know what you just read, and if it doesn't mention truth and give some historic situation for the truth, you're probably visiting the wrong schools if you care about education. | ||
| I could go off on that. | ||
| If you talk to the consultants, education's not even in the top ten of why most students or parents want to send their kid to a school, right? | ||
| They want a good food court and sports teams and all this kind of stuff. | ||
| Which is all frivolous. | ||
| But what about the feeder system that gets them there? | ||
| Yeah. I'm not so much worried about the college right now. | ||
| I am worried about the college because it got so few good ones, and most of it's a waste of time. | ||
| But what about these scores where math and science, these are free falls. | ||
| In a modern industrial society, your young workforce, and since we've gone to the entire STEM system, you're not teaching history, you're not teaching art, you're not teaching culture, you're not teaching American civics or civilization. | ||
| We've gone to STEM, and that is a free fall. | ||
| Yeah, and not even STEM. Everybody knows, right? | ||
| Funding is tied to these NAEP test scores, right? | ||
| They've been gaming these test scores. | ||
| How? Oh, I mean, there's a whole economic literature on this. | ||
| I mean, there's thousands of articles on gaming the test scores. | ||
| They serve sugar-high lunches and breakfasts before the testing. | ||
| I mean, you can't believe the gimmicks they go through to jack up these test scores. | ||
| And then there's all sorts of, you know... | ||
| Obviously, it's not working too well, because the sugar-high is not working, right? | ||
| And there's other things that matter, too. | ||
| First of all, I'd like to give the teachers the score. | ||
| I'm not sure the teachers would pass. | ||
| I think that teachers are illiterate, have, you know, don't know mathematics, basic. | ||
| You've got all these weird concepts. | ||
| Now they've actually admitted that the way they've been teaching reading for 30 years is wrong. | ||
| The mathematics is wrong. | ||
| And the signal is the elite universities even are getting away from all the testing. | ||
| So they can just do social experimentation. | ||
| Because that's the moment of truth. | ||
| I don't know if Denver has the NAEP chart, but after COVID... Yeah, there it is. | ||
| So after COVID, you just see a plunge, even if there have been some nominal gains over the last 20 years or so, which I really don't believe. | ||
| They're all gone now. | ||
| And this just ties in. | ||
| The drop in math and reading scores goes along with all the other social, right? | ||
| Suicide rates are up. | ||
| Social depression's up. | ||
| It's all tied. There's other dimensions to education that matter, too. | ||
| The Greeks knew this. All the classics knew this. | ||
| It's called character and virtue formation, all this kind of thing. | ||
| That's not there. Instead of virtues, we're teaching that there are no virtues. | ||
| There's no God. There's no foundations. | ||
| There's no absolute truth. | ||
| You're teaching woke. Woke, it's programmatically the LGBTQ ideology. | ||
| That goes in. That's embedded. | ||
| That's what they're trying to teach. | ||
| Right, right. And so, you know, they're smart enough not to go into the Marxist stuff or the neo-Marxist stuff, right? | ||
| They don't mention it explicitly, but this is clearly the Marxist project. | ||
| Sure. First, you get rid of God. | ||
| Then you get rid of truth. | ||
| Then you get rid of ethics. It's gone. | ||
| You get rid of the family. And they've won. | ||
| Real quickly before we go to break, we've got some hardcore economics. | ||
| We've got E.J. and Tony. We've got Navarro. | ||
| We've got Dave Brat. When people come to Liberty, the sourcing of the elite prep schools, the public schools, the charter schools, and the home schools, rank order those. | ||
| Well, the elites, of course, do good. | ||
| You know, they spend tens of thousands of dollars on these, you know, prepping for all the big national test scores. | ||
| So that's that's fine. | ||
| And we're going to get that's the economy. | ||
| There's just a bifurcate. There's the top 10 percent. | ||
| And then there's the rest of us. | ||
| But for the rest of us, you had the homeschool kids come in there. | ||
| They do science. | ||
| They do math. They're quantitative. | ||
| The moms are phenomenal. | ||
| Remember, the one great thing about covid, the moms, the moms took a look. | ||
| Yeah, right. If you just put it on the shoulders of the moms on America, the moms for liberty, the moms in this country, the history of this nation is built upon the shoulders, the broad shoulders of the moms of this nation. | ||
| And the moms are also central in the church. | ||
| They run the church, too. Let's back in a moment. | ||
|
unidentified
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Your host, Stephen K. Bannon. | |
| Okay. From the first segment, what I want to do is offer up to Joe Scarborough that the War Room will put on a town hall just for Joe, and we'll go back to his old congressional district. | ||
| He's always talking about how they love him so much. | ||
| And we'll have a MAGA town hall. | ||
| We'll just invite everybody to show up and have Joe there. | ||
| And Joe can defend all his city ways, as we say. | ||
| It's Scarborough, so you've got to think. | ||
| It's not a challenge, but we offer, the War Room offers, To have a town hall, put it up. | ||
| It's from Matt Gaetz's district now. | ||
| We'll do it down in Pensacola near the Naval Air Station. | ||
| And by the way, I noticed Morning Mika, since we called out Joe for just being a slug and drafting off her and she's doing all the work. | ||
| She doesn't have her name on the show. | ||
| I'm sure she's not as paid as well. | ||
| She's been much more deferential. | ||
| She's been very deferential to Joe. | ||
| We've noticed. We've watched this. | ||
| We've deconstructed. Okay. | ||
| The economy. All you hear on Stephanie Rule and everybody on MSNBC and CNBC is how great it is. | ||
| It's the greatest economy in the world. Jim Cramer, he's skipping around again. | ||
| So brothers Brat, Navarro, and E.J. and Tony all disagree. | ||
| So I'm going to start with E.J. E.J., you want to go through. | ||
| You just take it, brother. | ||
| Walk us through these charts. | ||
| And this is out of the Chicago Fed. | ||
| This is not us saying this. This is the Chicago Fed's numbers, E.J. So walk us through it. | ||
| Right. Well, Steve, thanks for having me. | ||
| One of the really amazing things that we're seeing right now is how the official numbers coming out of the Biden administration are contradicting basically all the other economic indicators. | ||
| And when we look at, for example, the data coming out of the regional Federal Reserve Bank, Chicago is the latest. | ||
| We see things are just falling off a cliff. | ||
| I mean, the service sector literally had its worst month In that district, since the lockdowns of 2020, when businesses were forcibly closed by the government and it was illegal for you to go to work or to shop at many small businesses. | ||
| So things are not looking good at all. | ||
| We're not only seeing, for example, businesses just stop hiring altogether and take down Online job postings, but we're also seeing work weeks being shortened too, and the reason that's such a good indicator is because businesses oftentimes, before they actually start laying off people, since there's an extra cost to laying off and hiring folks, is they just start reducing their hours. | ||
| And that's a very good indicator when we see that widespread that we're going to have additional layoffs in the future. | ||
| So I really don't see any indicators going forward that we're going to be able to avoid a recession here, especially when you start factoring Fed policy into the mix as well. | ||
| Walk me through. You've got some charts, don't you? | ||
| Can we go through the charts you put up on your Twitter? | ||
| Explain those to the audience. | ||
| Absolutely. Some people have said how the Fed has essentially never really stopped their quantitative tightening. | ||
| And that's a very, very good point. | ||
| That's true. They're continuing to sell off U.S. Treasuries, mortgage-backed securities. | ||
| They're drawing down the balance sheet. | ||
| Except what happened in March was They created all of this emergency lending in order to try to prop up the failing banking system. | ||
| And what that did was undo about half of the so-called quantitative tightening, or QT. So, in other words, the Fed, as they were allowing money to be extinguished with one hand, was creating it with the other. | ||
| Now, they are back on track with extinguishing additional money to try to fight inflation, but they are still increasing the amount of lending through something called the bank term funding program. | ||
| And what that essentially does is allow banks to take bad assets on their books And temporarily put them on the Fed's books, but the program only lasts a year. | ||
| And so once that runs out, which we have less than nine months to go at this point, once that runs out, the Fed really has no answer to how it's going to help these banks. | ||
| In other words, we're going to be right back into the situation we were in March, where we had banks that were failing. | ||
| You got the charts? | ||
| Can we go to the charts? Where do I see that on the charts? | ||
| I've got to be specific. Remember, I've got a podcast and radio audience here. | ||
| Where was that shown on the charts? | ||
| So we have one chart showing the bank term funding program continuing to increase, and that just hit a new record high last week. | ||
| And even with, amazingly, even when you consider how things like reverse repos have been coming down and how things like interest on reserves, the amount of reserves that banks have at the Fed, that has been coming down as well. | ||
| And you would say, okay, well, that's a very good sign because we're getting tightening in credit there. | ||
| A lot of this is being offset by, again, this emergency lending by the Federal Reserve. | ||
| First, let me say it really illustrates how the Fed doesn't have an exit strategy here. | ||
| But as a consequence of that, we're not getting the actual impact in terms of ending inflation that we should be. | ||
| As I said earlier, this is really the Fed giving with one hand but taking away with the other. | ||
| Yeah. No, they can't. | ||
| This is why the Bank of England, I think, yesterday, 50 basis point pop. | ||
| Dr. Navarro, your assessment of this and also this Bloomberg story you pulled up today and showed me the crack of dawn that doesn't bode well for any of this. | ||
| What's your assessment of this, sir? | ||
| Well, Powell said it all. | ||
| Basically, it's going to take a long time and we're going to have to solve our inflation problem. | ||
| In Powell's terms, not the Trump way, which creates positive growth, but in the Biden way, which is to strangle the economy with high interest rates and stick it to the deplorables. | ||
| And that's the process we're in. | ||
| As an economist and forecaster, I've always seen both the bond and stock markets as leading indicators of what's going on. | ||
| And if you just watch the action now, you've got a rally in bonds, meaning bond prices are up, expectation Of lower interest rates, not because the Fed's going to lower them, but at the long end, it's because this recession's coming. | ||
| And stocks have been trading at the upper end of the range, and look out below. | ||
| Bottom line, Steve... | ||
| Is that we're in stagflation. | ||
| The story that caught my eye today obviously was this Bloomberg story. | ||
| Bannon's been all over that for months as we in the war room. | ||
| But it's a $30 trillion problem. | ||
| Here's the nutshell of it. | ||
| Can we get the story up? Hang on a second. | ||
| If Denver could put that story up from Bloomberg, because it's very important, and I want Grace and Mo to make sure they put it up. | ||
| People should read this, but go ahead, because this is a ticking time bomb. | ||
| And here's why. Here's the buried lead in the story. | ||
| In the housing market, the norm is 30-year fixed-rate mortgages, right? | ||
| So you finance it, and you just forget about it. | ||
| In the commercial real estate market, which is a $30 trillion market, the strategy is very short-term financing with a big balloon payment at the end. | ||
| And if you can't refinance, you send the keys back to the bank. | ||
| Okay? Now, the problem that this commercial office space has, obviously, is on the demand side. | ||
| The pandemic Post-pandemic has totally disrupted the whole model. | ||
| Even people who are going back to work are only going back for a couple of days. | ||
| Businesses or huge corporations are consolidating all their space. | ||
| And the demand side of that market's upside down. | ||
| But hang on. | ||
| Whoa, whoa, whoa. | ||
| But don't bury the lead. | ||
| There's a big story up today about the gutting of the towns of the Midwest, right? | ||
| And it's all the same. | ||
| You get every one of these cities, St. | ||
| Louis, Detroit, or the big cities, they're all run by Democratic machines. | ||
| Everyone, they're lawless. | ||
| It's anarchy. It's filthy. | ||
| It's fentanyl. It's homeless. | ||
| People are tired of it. They're not going to do it. | ||
| So the work at home movement is now. | ||
| Hey, a lot of the work at home tech people are the people that vote for these progressive policies, but then they don't want to live with them, right? | ||
| So that's why these downtowns are in free fall in the commercial real estate. | ||
| I think it's Minneapolis. | ||
| has 21 million feet of unleashed office space. | ||
| Minneapolis has always been one of the great cities out there in the Midwest. | ||
| That's just one small example. | ||
| But Peter, continue. | ||
| Yeah, well, so the problem is that there's trillions of dollars coming due by 2025 that have to be financed. | ||
| And the interest rates are simply too high for that. | ||
| Plus, there's a squeeze on banks. | ||
| A lot of these regional banks now have had to tighten up In the wake of the collapse of the Silicon Valley Bank. | ||
| So it's basically the ultimate ticking time bomb on top of everything else, Steve. | ||
| So this is a politician-made disaster. | ||
| It's all Joe Biden. | ||
| And we forecast stagflation over a year ago. | ||
| It's nothing transitory about this. | ||
| And the people who are in charge don't understand the underlying problem, sir. | ||
| Okay, you're going to be here. | ||
| Let's do a quick advertisement for the 5 o'clock show with you. | ||
| You've actually got some star talent coming on today. | ||
| Hot as a firecracker. | ||
| Commander Jack Carr written the terminal list. | ||
| And the reason why I'm talking to a novelist is because his last novel, Only the Dead, which just came out, is like the perfect expression of of MAGA from the grassroots. | ||
| You all know Joe Kent. | ||
| It's like Joe Kent started writing books. | ||
| It's just a beautiful expression of what MAGA means. | ||
| So I thought in the 5 o'clock hour talking to Commander Kerr, we could actually kind of talk about what MAGA means. | ||
| It's not a four-letter word. | ||
| It's something beautiful, patriotic, and it's aimed for prosperity and security. | ||
| So tune in at 5. | ||
| I'll be honored to be guest host for the Admiral. | ||
| It is a four-letter word to the establishment. | ||
| We're proud of that. Real quickly, what's your social media? | ||
| PeterNavarro.Substack.com is where to go. | ||
| PeterNavarro.Substack.com. | ||
| Real Peter Navarro on Getter and Twitter and True Social. | ||
| We just got to keep hammering, Steve. | ||
| This is a long-term fight. | ||
| You're doing it great. Well, thank you, sir. | ||
| Appreciate it. Thank you, Peter Navarro. | ||
| E.J., how do people get to you on social media? | ||
| How do they follow the analysis you do? | ||
| Best place to find me is on Twitter, at RealEJAntoni. | ||
| E.J., thank you very much. | ||
| Great work over there. Steve Moore, great work at Heritage. | ||
| You guys are killing it. Thank you so much. | ||
| Okay, Brad's going to stick around. | ||
| We're trying to track down Garrett Ziegler. | ||
| This tax deal on Hunter Biden is much worse than you thought. | ||
| Whistleblowers are out. Also, we have a new Cuban missile crisis right in front of us. | ||
| President Trump talked about it yesterday with Seb. | ||
| We've got Sam Faddis to talk about the crisis in Cuba, the CCP with a dagger at the heart of America, all next in the war room. | ||
| Okay, welcome back. | ||
| We've got some walkthrough with Dave Brat. | ||
| We've got some charts. We're going to go through some things. | ||
| Your basic theory of the case is like, EJ, the math here that's coming out of these regional feds, It reinforces the Peter Navarro stagflation. | ||
| And this is where we're getting projections of 1% to 1.1% growth, high core inflation, high interest rates, and you're just going to have lost decades in front of you. | ||
| I really believe that. | ||
| You're going to kind of grind along. This is back to what Japan's had since the 90s because that asset inflation has never really gotten out of it. | ||
| They're probably in worse shape today than ever. | ||
| And it's what the United States had, given all the bad decisions we made in Vietnam, the Great Society, the oil crisis, coming off the gold standard, all that. | ||
| Finally, Volcker and Reagan showed up, thank God, and were two men of courage. | ||
| Never forget courage is the key underlying. | ||
| If you don't have courage, you don't have anything. | ||
|
unidentified
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So walk us through your choice. | |
| Yeah, and just to reiterate what you just said, it's becoming common knowledge now, but the big ten tech stocks are the only thing that are up. | ||
| They're about a third of the S&P stock market. | ||
| And so the market is up because it's been artificially stimulated. | ||
| As EJ just said, the Fed added another $500 billion after the bank started getting wobbly. | ||
| And then the catastrophe of the debt ceiling lift that added an additional minimum $4 trillion of federal government spending. | ||
| The trailing 12 months, which is reality, shows us $2 trillion. | ||
| So it's going to be a lot worse than $4 trillion. | ||
| It's going to be worse. No doubt. | ||
| It's going to be worse. Tax revenues, economy slowing, tax revenues because of the structure. | ||
| You're not going to increase tax rates. | ||
| No growth. | ||
| Last time I was on, the best predictor of that is our capital stock. | ||
| The total amount of capital we have to work with is now smaller than China's capital stock. | ||
| In basic economic terms, that 1% economic growth is going to be with us for your last decade. | ||
| And then my charts show what EJ showed. | ||
| And the service sector is over half of the economy right now. | ||
| And that's you and me and the people that work in service jobs. | ||
| And those are not scalable. So you're not going to get rich off those, right? | ||
| They don't grow at an exponential rate like big tech if you pop a patent or something like that. | ||
| And so the first chart that Denver has up already are the leading economic indicators, right? | ||
| So that's a basket of 10 indicators. | ||
| Indicators that are leading in the sense they should predict where the economy is going to go. | ||
| Same as the service sector. | ||
| It's falling off a cliff right there. | ||
| Why is that important? | ||
| The next chart, Denver. | ||
| For the audience, nomenclature. | ||
| Leading indicator. | ||
| You hear that a lot in the business. | ||
| Leading indicator means what? | ||
| When they see that basket. It's like a basket of housing permits, job losses. | ||
| That can project the growth of the economy. | ||
| If things are good, it's going to be robust. | ||
| If things are neutral, it's going to be neutral. | ||
| If it's negative, it's going to be bad. | ||
| Negative, bad. | ||
| What do these leading indicators tell you right now? | ||
| They're telling you the real economy, GDP, which is the total amount of stuff you make per year, right, goods and services, cars, refrigerators, that kind of thing, are going down. | ||
| No surprise. We're supposed to be in a recession by now, but I just covered, and you just covered on the show every day, the stimulus that keeps that from happening and the markets correcting. | ||
| So the next chart, it just reemphasizes what we're saying, the leading economic indicators are perfectly correlated with GDP growth. | ||
| It's the same two graphs. | ||
| And I'm going to post these at Brad Economics if other people want to pull them and share them. | ||
| And Grace and Mo, I want you to make sure that they, Captain Bannon and Grace, make sure you put it up. | ||
| Hopefully Carly Bonet over at Midnight Ride. | ||
| Let's get all these out here because I want people to get fully up to speed on what's happening in the economy. | ||
| Keep going. Next, the value of the U.S. dollar. | ||
| This is in the news. | ||
| You're all over it. | ||
| There's a few different terms that might confuse people. | ||
| Depreciation of the dollar is usually referenced with respect to other currencies. | ||
| So your currency goes down versus another currency. | ||
| That can be a win either way. | ||
| If you depreciate, it's good for exports. | ||
| Bad for imports. | ||
| Devaluation is used similarly. | ||
| That's when a country does it. | ||
| If you don't have floating exchange rates and the country imposes a devaluation, you'll hear that more in the central command economies. | ||
| But this is the one that affects your lives, right? | ||
| The purchasing power of the dollar is down 86% since 1972, right? | ||
| When we got off gold. What random event happened? | ||
| No, I want you to repeat that. | ||
| Everybody repeat it. Okay? | ||
| Everybody repeat it. Since we went off the gold standard, purchasing power of the dollar has been what? | ||
| Down 86%. | ||
| That is not what you call stable prices. | ||
| And the Fed got off of gold, and their number one mandate... | ||
| Look, for all the things that people say, what's an ancient thing, it doesn't make any difference, there's all this crazy stuff from Egypt and places like that. | ||
| Nope. But here's what it did. | ||
| It was a tether to politicians... | ||
| If you had the gold, you wouldn't have had what you had just here with McCarthy and this crowd. | ||
| Where they've got a printing press over the Federal Reserve. | ||
| They keep printing money. | ||
| Just a quick aside. | ||
| This is why I'm birch gold. 60 days from now. | ||
| And Faddis is going to be on here who's dedicated his life to the CIA in a moment about the new crisis in Cuba. | ||
| The crisis in Cuba, the envelopment of the United States, what's happening in Taiwan, and also what's happening in Durban, South Africa. | ||
| The BRICS. The Brit nations, and now they want, Modi yesterday said he wanted the African Union, particularly the powerhouses in sub-Saharan Africa, have the resources to join the G20. Here's what's happening. | ||
| Around the world, because people say, well, Steve, how do you say this? | ||
| The dollar's not that far off of these other currencies. | ||
| No, you've got to compare it to the commodities, right? | ||
| The guys that have these nations, I don't care if they got turbans or others. | ||
| They got plenty of smart people that went to Harvard and went to MIT Sloan and went to the University of Chicago and went to Stanford and know how to work in HP-12C and they can do discounted cash flow and all the perturbations around there. | ||
| They have come to the conclusion. | ||
| That when they see McCarthy and they see, hey, these supposed to be Republicans that are in charge of the thing, when they see that and look at what these politicians do, and they know it's more than $4 trillion to add to the national debt, and they don't see any political courage of any faction. | ||
| Right besides MAGA, and we're getting beaten up every day, no faction is prepared to step up to the plate and say, this thing is out of control, and we got to, because of your barriers. | ||
| So they've taken action on their own, and 60 days in Durban, all the BRICS nations, led by the CCP, because they're instigating it all, are going to be there, and they're going to offer up an alternative currency for the first time since Bretton Woods, since the The pound went away, and what they're going to say is that, and for them it's not going to be perfect, it's going to be some sort of basket, but it's a start, and that's the problem. | ||
| This is the end of the dollar empire. | ||
| In fact, go to birchgold.com and you get all the information. | ||
| We're going to come out hopefully by Monday and have a whole new package for you guys, but go check. | ||
| You should ask the Birch Gold guys. | ||
| If the central banks of these countries that have all these resources are buying gold at record rates, is something going on here? | ||
| Because I think you're seeing, and correct me if I'm wrong, Brad, because they see what they look at and they say, hey, look, the American citizens have got to take it. | ||
| Because they voted them in. | ||
| And so if they're taking their purchasing power away, and I think the purchasing power has been a 15% drop in the last two years, they're going, they're not going to do it to us. | ||
| We're going to get some basket of some alternative, and we're going to back it up with gold. | ||
| And they're going to a quasi-gold standard internationally. | ||
| Do you agree with that assessment, directionally? | ||
| I agree with it all economically and geopolitically it's all tied to. | ||
| They see the weakness of the global north. | ||
| They're setting up rules of the game. | ||
| Good luck with that. They're going to have a hard time doing that, right? | ||
| We ruled the seas and the trade and the post-World War II Bretton Woods liberal order. | ||
| I don't think they're going to pull it off, but that's where they're going. | ||
| The global north. That's where they're going. | ||
| The global north. Yeah. Blue-eyed white foreign devils don't know how to manage their own affairs. | ||
| They're over in Ukraine killing each other. | ||
| You've had World War I. You've had World War II. These foreign devils don't know how to... | ||
| I mean, this is the pitch they're making. | ||
| They're saying, why do we have to be into that system? | ||
| Why are we beholden to the Federal Reserve? | ||
| You got this guy Powell. | ||
| When they look at our country and they see Blinken kowtowing, that little worm over the kowtowing to the CCP, and they see Powell, you see no alpha male. | ||
| All these beta males up there, they're all worming around. | ||
| What do you think the world shows? | ||
| You got Mitch McConnell, Chuck Schumer, Joe Biden, you got Hunter Biden, you got a pervert, you got Modi, who comes just as a standing ovation, Modi, Modi, Modi, one of the great Nationalists in our world, and he's not perfect, but man, he's a hammer for his country. | ||
| They're all chanting. He's over there, and this is the lack of respect, and the world sees this. | ||
| You have Modi, who's a rock star, and they put out a poll today. | ||
| 76% in the world poll, Modi's the number one leader in the world. | ||
| Wow. Okay, but people respect, because people in these other countries say he stands up for the Indian people. | ||
| It's a billion, they have 800 million votes in a democracy, paper ballot, and guess what? | ||
| It takes them a month. Right. | ||
| And they're clean elections. The Indians are all over this. | ||
| The British did a good job of setting it up before they got tossed out. | ||
| But the Indians run a tight ship over there in this. | ||
| And so Modi's a rock star and he's one of the leaders in this thing. | ||
| The Bidens, when the world looks, Joe Biden brings a pervert son that's on the take from everybody and has the gall to put him in a state dinner and kind of, quite frankly, humiliate the Indians. | ||
| This is what the world sees. | ||
| The world sees these foreign devils and says, they're not so smart. | ||
| They're not so tough. They can't take care of their own affairs. | ||
| The Americans are the things that are most screwed up of all. | ||
| And we're not going to just sit there and have our world. | ||
| We have to do every transaction in Federal Reserve notes. | ||
| Well, maybe we've got a better system. | ||
| And I'm telling you, unless we get our house in order. | ||
| The Durban Accords, which we call them, are just the opening salvo. | ||
| They're going to come up with an alternative, and then we're going to be like the British. | ||
| Professor, am I right or wrong here? | ||
| No, you're right. And if you'll notice, I like tying everything back to the utter foundations, and they're always moral when you really look at it. | ||
| And if you look at Modi's speech also, What no one will ever comment on was the poem that he read and the philosophical underpinnings of light, the sunlit uplands, right? | ||
| He had these metaphors of hope and promise and whatever. | ||
| And the U.S., what are we offering? | ||
| We're telling the people of the Ukraine, we got your back. | ||
| They're all dead. They've lost their shell country. | ||
| The people in Taiwan are noticing this moral failing of the United States of America. | ||
| If you promise your buddy you got their back, you better have their back. | ||
| Our word used to mean something. | ||
| It's shattered. The Judeo-Christian West right now is shattered. | ||
| We have to restore that faith and credibility. | ||
| That's also tied to financial markets. | ||
| I want to bring in Sam Faddis right now. | ||
| Because Faddis, you've got an amazing piece up on Ann Magazine. | ||
| I know you're the founder and editor there. | ||
| But this piece about the current The current Cuban Missile Crisis we've got, 90 miles from our border. | ||
| Is Dave Brat right? | ||
| Have they looked at the United States and say, hey, these guys don't have anybody's back, and they don't even have their own back. | ||
| And right now, a dagger at the heart of America, the Chinese Communist Party are going to prove to the world that we cannot defend ourselves. | ||
|
unidentified
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Sam Faddis. Yeah, 100%. | |
| That's precisely where we are, right? | ||
| We have been measured and evaluated and found wanting. | ||
| So now you got the Chinese negotiating an agreement with the Cubans, which we assume will be based on the template they've used multiple other places, which means they're going to establish a military base and bring in military personnel and put them 90 miles from Florida. | ||
| And, you know, look, they're not coming to train Cubans or hang out and get a tan. | ||
| So you can look at what they have done elsewhere and you can presume That this is the first step toward the deployment of offensive military weapons there, pointing directly at us. | ||
| That's the second Cuban Missile Crisis. | ||
| Worse, obviously, because we don't have JFK sitting in the White House to push back on this. | ||
| Talk to me about... | ||
| I'll tell you what. Let's take a break. | ||
| I want to get into this. We've got more economics to go through. | ||
| We've got this show. | ||
| It's actually developing... Much better than I thought it would. | ||
| We were so jammed this morning, but I think we're giving enough auctions, everything. | ||
| Sam Faddis, and we can get Sam Faddis' piece out. | ||
| We have a second missile crisis. | ||
| The problem is we don't have a Jack Kennedy to stare it down. | ||
| As imperfect an individual as Jack Kennedy was, in that moment in time, he stared it down. | ||
| Or at least he stared it down. | ||
| They also had a little side deal with the Turks, with the missiles in Turkey. | ||
| A little side deal. | ||
| People should remember also, it was under the cover of the Cuban Missile Crisis that the CCP initiated an offensive war against the Indians, against India. | ||
| And that had massive impact. | ||
| Geopolitics, capital markets, the economy, all of it in the war room. | ||
| Short break, back in a moment. | ||
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| Action, action, action. | ||
| So, Faddis, tell me, when you say the Chinese are putting a military base down there, I understand there are already Chinese personnel down there, PLA from the CCP. When you say it has offensive capabilities, walk me through what we can anticipate is going to be there. | ||
| Right. Well, again, look, they're not coming there. | ||
| What is their intent in coming there? | ||
| It is obviously not that they have a pressing need to go train the Cuban military. | ||
| What they're going to do is they're going to establish a facility that's going to flow in Chinese personnel. | ||
| From there, what can we expect? | ||
| Well, let's start with missiles. | ||
| Do I expect that that's the first thing that's going to land on the island? | ||
| Obviously not. But you're alluding to the Cuban Missile Crisis. | ||
| Technology has changed. | ||
| If you're talking about Chinese missiles and the command and control mechanisms and all of that stuff, you can bring that stuff in in 40-foot shipping containers on a commercial vessel Drive it to wherever and have it operational in almost no time, okay? | ||
| Hypersonic Chinese missiles. | ||
| Flight time, I mean, speed in excess of 7,000 miles an hour. | ||
| You work that out, my math's not great, but that's about two minutes from Cuba to Miami. | ||
| Maybe 20 minutes to New York, D.C. This changes everything. | ||
| Anybody who thinks we have the capacity to intercept that, stop that, forget about it. | ||
| And we're talking not just conventional warheads, but we know that the Chinese are working overtime on putting nuclear warheads on those things. | ||
| What about cyber and what about offensive cyber with AI and what about many Wuhan labs, biological and chemical? | ||
| They've got chemical through fentanyl, they've got biological through the coronavirus and others they're working on, which we now know from, Turner won't turn over the report, but we know it came from the Wuhan lab as a bio lab in offensive cyber, sir. | ||
| Yeah, all of that. I mean, make a list of all the horrible things in the world. | ||
| Yes, biological, why not? | ||
| I mean, we've already experienced COVID. We are being attacked, the equivalent of a WMD attack by the Chinese every day with fentanyl. | ||
| Keep in mind, I mean, I think people really ought to focus on this. | ||
| Look, four years ago, COVID crawled out of a Wuhan lab or was released from a lab. | ||
| But in one way or the other, it came out of a lab that should have been at the top of our priority list in terms of collection. | ||
| Biological warfare program, make a virus more dangerous to human beings, our number one global enemy. | ||
| Nothing trumps that. | ||
| That's literally what they call in the intel community, tier zero collection requirement. | ||
| We received from our intelligence community no warning. | ||
| And then when it began to happen and the Chinese scrambled to contain it, We received no notice of that. | ||
| It was invisible to us. | ||
| Four years later, our intelligence community, when you ask them, how did the pandemic start? | ||
| If you read the assessment and cut through the double talk, it says, we still don't know. | ||
| We have no information. | ||
| We have no intel. So if you think the Chinese are going to begin to come into Cuba and we're somehow going to monitor them moment by moment and know precisely when they've got what there, I mean, you're living in la-la land. | ||
| That's not where we are. | ||
| Our collection capacity is nil. | ||
| President Trump said on SEB last night he'd give him 48 hours, then he would come in with hard sanctions, tariffs, everything, to try to break him economically. | ||
| What would Sam Faddis do? | ||
| Timing, ultimatum, and action. | ||
| Well, look, I think the president's instincts are exactly right, right? | ||
| What we can't have is we can't have the Biden response, which will be we're going to issue a strongly worded letter and begin to have negotiations, which is code for we'll do nothing. | ||
| We have to approach this the way Kennedy did back in the first Cuban Missile Crisis, which is, no, we're setting a finite period and there's no negotiation. | ||
| There's no discussion here about acceptable terms. | ||
| You will not do this. | ||
| This is not going to happen. | ||
| And then I think his instincts again are correct. | ||
| Before we move to kinetic military action, which I would not take off the table, make a list of every economic, political pressure point we have and say it's all on the table, man. | ||
| Tariffs, access to capital, trading on the stock exchange, anything and everything. | ||
|
unidentified
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You got about 72 hours. | |
| You would support Gates. | ||
| Gates requested, and he's kind of an anti-war guy, he requested the authorization of military use for the president to be able to take kinetic action here. | ||
| You would also say you would go fairly quickly up the chain of escalation to get to kinetic if you had to? | ||
| I would definitely put kinetic action on the list of options we are prepared to take. | ||
| Would that be my preferred way to solve the problem? | ||
| Obviously not. But look, I think we both know here's the real issue. | ||
| The issue is that the Chinese are doing this because they expect there will be no pushback of any kind and no resolve. | ||
| That's what has to change. | ||
| They have to be told, we will and are taking action. | ||
| This is completely unacceptable. | ||
| The Biden administration, again, we know where they're going to go with this. | ||
| If they acknowledge it at all, they're going to say, well, we'll begin discussions. | ||
| Good God, Blinken just came back from China. | ||
| 100,000 Americans die a year from fentanyl. | ||
| All the precursor chemicals come from China. | ||
| He came back and told us with a straight face, The Chinese are basically accidentally shipping those chemicals to Mexico. | ||
| They don't really know where they're ending up. | ||
| So that's... No, it's a lie. | ||
| And his thing on Cuba was a disgrace. | ||
| So we told him we're very sternly watching that. | ||
| Sam, how did they get to And Magazine? | ||
| How did they get to you on social media? | ||
| Andmagazine.substack.com. | ||
| That'll take you to every place we are. | ||
| Twitter getter every place else. | ||
| Andmagazine.substack.com. | ||
| And you got a lot on end, not just geopolitics, but a lot about the local politics up there and other things. | ||
| And election integrity or election crime. | ||
| So thank you, sir. Appreciate it, Sam. | ||
| Thank you. Long-term veteran CIA. Real quickly before we go to break, Cuba. | ||
| Yeah, Cuba, Sam, had it just right. | ||
| And we have leverage, like we just did on the debt ceiling, unique leverage at this moment in history, right? | ||
| Our economy in the U.S. is only 20% traded. | ||
| China's economy is still 50% traded. | ||
| They're utterly dependent on us, no matter what they say. | ||
| She's trying to move internal. | ||
| 80% of their energy comes around India. | ||
| We have huge leverage right now at this point in history. | ||
| If we don't use it now, We do lose what's left of the liberal rules-based order. | ||
| Does the American elite have the moral courage to stand up here? | ||
| No. You just heard the undercover work with BlackRock. | ||
| They own senators. They want to keep doing business with China to extract every last nickel of profits on behalf of the ten top financial firms and at the cost to the American people. | ||
| Short commercial break. | ||
| Second hour is going to be lit. | ||
| Tim Ballard's going to join us. | ||
| Chris Hoare's going to join us. | ||
| Steve Stern's going to join us. | ||
| We're on fire here on a Friday in the War Room. |
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