Sept. 29, 2023 - Bannon's War Room
51:30
Participants
| 
| Speaker | Time | Text |
|---|---|---|
| This is the primal scream of a dying regime. | ||
| Pray for our enemies. | ||
|
unidentified
|
Because we're going medieval on these people. | |
| I got a free shot at all these networks lying about the people. | ||
| The people have had a belly full of it. | ||
| I know you don't like hearing that. | ||
| I know you try to do everything in the world to stop that, but you're not going to stop it. | ||
| It's going to happen. | ||
| And where do people like that go to share the big line? | ||
|
unidentified
|
MAGA Media. | |
| I wish in my soul, I wish that any of these people had a conscience. | ||
|
unidentified
|
Ask yourself, what is my task and what is my purpose? | |
| If that answer is to save my country, this country will be saved. | ||
|
unidentified
|
War Room. Here's your host, Stephen K. Babb. | |
| I've come to honor the McCain Institute and Library because they are a home of a proud Republican who put his country first. | ||
| Our commitment should be no less, because democracy should unite all Americans, regardless of political affiliation. | ||
| And there's something dangerous happening in America now. | ||
| There's an extremist movement that does not share the basic beliefs in our democracy. | ||
| The MAGA movement. | ||
| Not every Republican, not even a majority of Republicans adhere to the MAGA's extremist ideology. | ||
| I know because I've been able to work with Republicans my whole career. | ||
| But there's no question that today's Republican Party is driven and intimidated by MAGA Republican extremists. | ||
| Their extreme agenda is carried out with fundamentally all of the institutions of American democracy as we know it. | ||
| They're pushing a notion to defeat a former president expressed when he was in office and believes it applies only to him. | ||
| And this is a dangerous notion. | ||
| This president is above the law, no limits on power. | ||
| Trump says the Constitution gave him, quote, the right to do whatever he wants as president, end of quote. | ||
| I've never heard a president say that in jest. | ||
| Not guided by the Constitution, or by comments, service, and decency toward our fellow Americans. | ||
| But by vengeance and vindictiveness. | ||
| Just consider these as actual quotes from MAGA, the MAGA movement. | ||
| Quote, I am your retribution. | ||
| Slitting throats of civil servants, replacing them with extreme political cronies. | ||
| MAGA extremists proclaim support for law enforcement only to say, we quote, we must destroy the FBI. | ||
| It's not one person. | ||
| It's a controlling element of the House Republican Party. | ||
| Whitewash attacks of January 6th by calling the spearing and stomping of police a quote, a legitimate political discourse. | ||
| Did you ever think you'd hear leaders of political parties in the United States of America speak like that? | ||
| For accusations against, of treason, treason, against a major news network because they don't like his coverage. | ||
| I don't know what the hell I'd say about Fox if that becomes the rule. | ||
| But think about it, I'm joking, but think about it. | ||
| I have the honor of overseeing the change of responsibilities of the Chairman of the Joint Chiefs of Staff of the United States military. | ||
| From one genuine hero and patriot, General Mark Milley, to another, General C.Q. | ||
| Brown. | ||
| Both. | ||
| Both defining leaders of our time. | ||
| And yet, here is what you hear from Maggie Extremist about the retiring Patriot General honoring his oath to the Constitution. | ||
| Quote, he's a traitor, end of quote. | ||
| In times gone by, the punishment, quote, in times gone by, the punishment would have been death, end of quote. | ||
| This United States of America, This is the United States of America. | ||
| And although I don't believe even a majority of Republicans think that, the silence is deafening. | ||
|
unidentified
|
It's disqualifying for him to serve in any public office, but of course the voters decided otherwise eight years ago, or seven years ago. | |
| We really are at an inflection point. | ||
| The interesting thing is this is going on all over the country. | ||
| I mean all over the world. | ||
| There's a guy running for prime minister in Slovakia who is a huge, hugely corrupt, quite possibly involved in the assassination of a reporter who's now leading the polls. | ||
| He'll probably lose because there'll be a coalition that opposes him. | ||
| This is really a test for the American people. | ||
| Are you going to be decent people who do the right thing? | ||
| Look, I didn't agree with very much that George W. Bush did, particularly the Iraq war and the enormous tax cuts for the wealthy. | ||
| But I like George Bush personally and I respected him. | ||
| I respected John McCain enormously because of his service to the country. | ||
| Trump doesn't respect anybody precisely because he doesn't respect himself. | ||
| And that is what he's selling to the American people. | ||
| He's selling anger, he's selling fury, but he's not selling respect and he's not selling decency. | ||
| And this is a decision for the American people to make. | ||
| I always say the voters are the boss. | ||
| And the boss may be wrong, the boss may be right, but the boss is always the boss. | ||
| Well, we're going to find out what the boss really wants. | ||
| And it is their choice. | ||
| And this is where I think Biden is absolutely right. | ||
| Their choice what kind of a country we want to have. | ||
| But we will not get what we have back if we lose it this time. | ||
| Major problem. | ||
| I mean, that's the authoritarian book that Trump is playing out of, is threaten people and threaten them with bodily harm, threaten their families, if you don't get your way. | ||
| It's the classic authoritarian ruler. | ||
| This guy, first of all, I grew up in New York. | ||
| Trump cheated and lied his way to whatever he has, and he's about to get most of it taken away because he's probably going to lose his New York business license in court in the next few weeks. | ||
| This is a bad guy. | ||
| He never should have gotten as far as he did. | ||
| He's really sort of an insufficient personality and a clown. | ||
| But the fact of the matter is, he's conning a lot of Americans. | ||
| And the first people who are going to suffer if he wins re-election are the people who are voting for him now and sending them their hard-earned dollars. | ||
| He will turn on them because he doesn't give a damn about them. | ||
| The only person Donald Trump cares about is himself. | ||
| Overthrowing our government. | ||
| And it has lead elements, including Trump, including folks like the former National Security Advisor Mike Flynn. | ||
| And the lead soldier in this in Congress is Tommy Tuberville, who is ridiculous, radical, reckless, and racist. | ||
| And I've called him Senator Redneck because that's what he is. | ||
| You want someone to lead this ridiculous, racist, thing that undermines our national security. | ||
| Tuberville's like, me, I'll be your guy. | ||
| And he is now doing that. | ||
| He's got 10 minions who've followed him to vote against C.Q. | ||
| Brown. | ||
| And every day it's something new that undermines our national security. | ||
| It hurts our troops. It hurts our morale. | ||
| Our enemies are celebrating. Vladimir Putin loves this. | ||
| But there's also the political side of this. | ||
| This is driving the GOP further and further away from America, and especially from independents like me. | ||
| I've called this the Confederate wing of the GOP. | ||
| They don't want to preserve the military of 2023. | ||
| They want to create the Confederate Army. | ||
| They want to take us back to the 1800s. | ||
| They don't understand this modern world, and they're fighting it. | ||
| And we've got to fight back. | ||
| Friday, 29 September, in the year of our Lord, 1860... No, I'm just kidding. 2023. | ||
| We're here. | ||
| You're in the war room. | ||
| A lot has happened overnight. | ||
| A lot more is going to happen today. | ||
| We've got Ben Burquam. | ||
| I think Ben's down in McAllen, Texas, about to give a big speech address down there. | ||
| I'm going to go to Burquam. | ||
| We've got a lot of stuff on the economy, interest rates, capital markets that you need to hear first. | ||
| Obviously, huge developments overnight. | ||
| Let me know when Ben's up and I'll go right to Ben. | ||
| As soon as you get Ben up. | ||
| Kevin McCarthy is about to give a presser. | ||
| Last night, just to do a reset so folks understand where we are, we passed three single-subject bills last night. | ||
| We passed defense, homeland security, and the State Department of Foreign Operations. | ||
| We don't love these bills, but this is, you know, Biggs and Crane and Gates and these guys stepped up and said, hey, we can show we can govern. | ||
| It was just like we accepted the one-year deal, which we didn't love, back on the debt ceiling. | ||
| The quote-unquote radical right were the people that got over-the-top these bills to show that, hey, we got 50% of the government funded right now on some of the big power agencies and to send it to the Senate. | ||
| In addition, this was huge, and a hat-tip to MTG. | ||
| She forced to strip out the Ukraine $300 million that was in the defense bill. | ||
| Now people are sitting there saying, oh, it passed $300 million. | ||
| No, no, no. | ||
| The key number, and if we can get Gates' tweet up, I think it was 117 to 100, or 117 to 101, the majority of the conference voted against this, ladies and gentlemen, and that is because of you. | ||
| I was talking to people late last night, they said 100% to Warren Posse, calling people's offices, and going to the Kiwanis clubs, and going to the Lions clubs, and going, and when the guys come to speak, the men and women come to speak, sit there and go, no more money for Ukraine. | ||
| I think is it Trey Nels, the congressman down in the Houston area, former law enforcement, who had been, I think, a pretty big Ukraine supporter, tweeted out last night when he gave it a no vote. | ||
| He said, enough is enough. | ||
| Dave Brat, thank you. | ||
| You're going to be my wingman for the first hour. | ||
| We've got a lot to go through. | ||
| Thank you so much for coming in. | ||
| Let's go to Berquam. | ||
| I've only got Berquam for a few minutes. | ||
| Ben Berquam. | ||
| Ben, is it McAllen, Texas you're in today? | ||
| Yes, sir. | ||
| We're down here with 160 sheriffs, representatives from all over the country. | ||
| I've got Sheriff Mike Lewis from Wicomico County, Maryland, talking about what's happening. | ||
| I'll be speaking in about 30 minutes from the media side, the real news media, while the fake news media is pushing all the propaganda, the reality of what's actually happening down here. | ||
| To attack the sheriff, tell us, every town's a border town. | ||
| This invasion of the United States, how can it be stopped? | ||
| That's what the people in the country want to know. | ||
| How do we stop it? | ||
|
unidentified
|
Well, we all know what we need to stop it, and that is for this administration to change their current path and trajectory on this country. | |
| What crosses this border today, clearly, is in my county tomorrow. | ||
| We have seen an unprecedented number of overdoses due to fentanyl. | ||
| We've seen an unprecedented number of criminal arrests involving illegal aliens. | ||
| Just this past weekend, in my county, we arrested a number of illegal aliens for criminal offenses. | ||
| Not for being illegal in the country, because there's absolutely nothing we can do about that any longer. | ||
| But they were committing all kinds of criminal violations, including one who was traveling southbound in the northbound lanes of US Route 13 in Wicomico County, nearly striking a marked Wicomico County Sheriff's deputy head-on at 2 a.m. in the morning. | ||
| We finally got him stopped, and he was over three times the legal limit to be operating a motor vehicle. | ||
| As you well know, most of the illegals are unlicensed, they're uninsured, they are wreaking havoc across this country. | ||
| But that's just one part of it. | ||
| It's the enormous amounts of fentanyl that are now being seized across our country and in my community that are contributing to a large amount of overdose deaths. | ||
| Last year over 110,000 people alone died in our country due to fentanyl and opioid overdoses. | ||
| An unprecedented number like we've never seen. | ||
| And we are down here to learn and to assist our Texas brothers and sisters in combating what we see as a man-made crisis that started shortly after the swearing in of Joe Biden in Washington, D.C. | ||
| And politics aside, man, these people are suffering down here. | ||
| They are absolutely suffering down here. | ||
| And we're learning just what they're facing every single day, and how difficult it is to work when we have an unsecure border. | ||
| And without a secure border, we will never have homeland security until we have border security. | ||
| And that's more evident today than ever before. | ||
| Sheriff, how do people, we've got to go to Capitol Hill right now, how do people follow you? | ||
| Do you have a Facebook, social media, they can follow your struggles? | ||
|
unidentified
|
I do, I'm on Facebook. | |
| Yes, I'm on Facebook, on social media. | ||
| Sheriff Mike Lewis, Wicomico County. | ||
| Mike Lewis on Facebook. | ||
| Sheriff Mike Lewis on Facebook. | ||
| They can find me any way they need to find me. | ||
| And I'm here to tell you right now, what crosses this water today is in Wicomico County, Maryland tomorrow. | ||
| And we cannot emphasize that enough. | ||
| They travel all night long. | ||
| to get their illegal aliens and drugs into our communities. | ||
| And as you well know, crossing this border is not just the drugs, not just the fact they're illegals, but we have convicted murderers freely traveling back and forth now because we have an open border. | ||
| It is wide open. | ||
| And Steve, I'll be getting more from the guys here and bringing it to you throughout the day. | ||
| You tell the folks down there, worms got their back. | ||
| We want to flood the zone today with great content from down there. | ||
| We love these men and women. | ||
| They're the front line to save our nation. | ||
| And Ben, come back to us right after your speech. | ||
| Sheriff Lewis, honored to have you on here. | ||
|
unidentified
|
Thank you, Steve. | |
| Thank you so much, sir. | ||
| Thanks, Steve. | ||
| This is the reality. | ||
| The reality is an invasion of the southern border along with, you know, we finally put the stop, I think, to Kibosh on funding this ridiculous amount of money. | ||
| They want $80 billion this year into Ukraine. | ||
| So this fight is going to be quite intense. | ||
| Kevin McCarthy has just come to the sticks. | ||
| What we're going to do is take a short commercial break. | ||
| Get organized here. | ||
| We'll come back. | ||
| We'll have Kevin McCarthy. | ||
| I think he's going to lay out today how he's going to roll out of CR. | ||
| But good news, folks. | ||
| We did not get rolled last night. | ||
| Actually, hat tip to Matt Gaetz. | ||
| Hat tip to all the magnificent six, the 20. | ||
| You came together. | ||
| You got these big bills passed. | ||
| We don't totally love them. | ||
| But they're not too shabby. | ||
| A lot of woke out of there. | ||
| Some significant cuts. | ||
| Not perfect, but we live in an imperfect world. | ||
| But now, hey, it's not MAGA that's slowing this thing down. | ||
| The CR is gonna be up next. | ||
| Also, hat tip to MTG. | ||
| She stripped out the Ukraine funding and made everybody come to the table. | ||
| The majority of the majority last night voted no. | ||
| No more Ukraine funding. | ||
| Back in a moment. | ||
|
unidentified
|
Appropriation bills. | |
| I told you don't give up on us because we're not giving up on the American people. | ||
| We passed three appropriation bills, defense, state, and foreign ops, and homeland security. | ||
| My biggest question is I don't understand why the Democrats voted against funding the government. | ||
| In all, we have four appropriation bills done. | ||
| There's 12 overall to get done. | ||
| It's the discretionary spending every year that government is supposed to do. | ||
| We have now in the House passed more than 70% of the discretionary spending on appropriations. | ||
| Need I remind you, how much has the Senate passed? | ||
| Zero. | ||
| Not one appropriation bill has passed the Senate. | ||
| We've done what many have said was impossible. | ||
| When I became Speaker, I said, we're going to change Washington. | ||
| And we did that by keeping our commitment to restoring regular order. | ||
| Bills that passed committee in June and July have been open for amendments for months. | ||
| Struggled with a number of members who wouldn't allow it to become up, but I never gave up. | ||
| 440 amendments were considered on the floor this week. | ||
| And for those who are historians, we are the first Republican majority to pass the State and Foreign Ops Bill through regular order since 2006. | ||
| My entire political career as a member of Congress, Republicans have never been able to do what they just did last night. | ||
| As we continue to get conservative wins in return to regular order, We actually need a stopgap measure to allow the House to continue to finish its work, to make sure our military gets paid, to make sure our border agents get paid as we finish the job that we're supposed to do. | ||
| Another reason for the stopgap is to address President Biden's historic failure on the southern border. | ||
| This is how bad things have gotten under President Biden's watch. | ||
| In five days, There's been more than 50,000 illegal border crossings. | ||
| Put that in perspective in just five days. | ||
| That's more than twice as much as the average for the entire month in the last administration. | ||
| A wide open policy hurts America. | ||
| We've heard it from Democrat leaders across the country. | ||
| But despite the chaos, the president still won't go to the border. | ||
| Setting new records every day. | ||
| Fentanyl at an all-time high, killing Americans, and he refuses to go to the border. | ||
| He's been one time in 50 years. | ||
| One time in 50 years. | ||
| He's had more dinners with Hunter Biden business partners than he has going to the border. | ||
| Think about that for one minute. | ||
| Something he said he's never done, he's done more than he's ever been to the border in 50 years as an elected official. | ||
| He was less than 200 miles from the border this week in Arizona. | ||
| Less than 200 miles. | ||
| And he couldn't even stop by for an 87 second photo op. | ||
| Really makes you believe that President Biden is deliberately letting this happen and trying to continue to ignore it. | ||
| If Biden won't visit the border, why won't he at least listen to the Democratic leaders that are elected across this nation? | ||
| Mayors of New York City says Biden's border policy will literally destroy the city of New York. | ||
| Governor of New York says illegal immigrants should go somewhere else. | ||
| The governor of Massachusetts declared a state of emergency. | ||
| Mayor of El Paso says the city is at a breaking point. | ||
| Mayor of Eagle Pass, Texas, says President Biden has abandoned them. | ||
| Okay, let me have it for a second. | ||
| I can't take any more of the this is and I want to thank this audience. | ||
| For being the stalwarts. | ||
| The reason this got done last night had nothing to do with Kevin McCarthy. | ||
| Kevin McCarthy worked against this process. | ||
| Now that we got wins, he wants to say, you know, I fought my career and I staked my speakership. | ||
| He was forced to do this in January. | ||
| He didn't do it. | ||
| The subcommittee bills have been done. | ||
| Actually, the committee bills have been done since July. | ||
| He didn't have any days in July to focus on it. | ||
| He sent everybody home in August and he got back here and he gave you the shiny toy. | ||
| The fiasco you saw yesterday, the fiasco you saw yesterday was your shiny toy. | ||
| Because you're too dumb to focus on what is the most important thing in American political or economic or individual life right now. | ||
| You know, maybe besides the spiritual warfare we're going through of these demons that are trying to destroy our country. | ||
| One way they're trying to destroy it is just to keep printing money and keep Leviathan fed. | ||
| Kevin McCarthy did nothing on this. | ||
| So he can sit up there with a mic and just do your eye roll. | ||
| Say, Kevin, cut to the chase. | ||
| Let's get to the CR. | ||
| We know what we did last night. | ||
| Joe Biden, to show you how interested he is, Joe Biden comes out just when this is happening and says, hey, I'm vetoing any CR that has anything to do with border security. | ||
| Right? | ||
| Give me a clean CR. | ||
| In other words, you keep the scam and the con going unlimited so then they can roll it all up and vote on another omnibus just like last year and do it right before the Christmas holidays. | ||
| Fortunately, we have patriots like yourself that are standing in the breach and they understand we're immovable. | ||
| We got those three bills through last night. | ||
| Gates and the team got the three bills through because we wanted to put it in their grill. | ||
| Hey, we passed these out, this 50% of the spending. | ||
| They're not perfect. | ||
| A bunch of our amendments got shot down. | ||
| A bunch of stuff in committee got shot down. | ||
| You know, Mike, these insane defense hawks that are just over the top with weapons and munitions and not thinking about 21st century warfare and not thinking about victory, more of the Vietnam, Iraq, Afghanistan, not particularly bright generals working with defense contractors to keep us in endless wars with the Uniparty, to keep us in endless wars and the lobbyists. | ||
| But it was good enough, good enough for this process right now. | ||
| Good enough to get it over and put in their face, hey, we funded 50% of the government. | ||
| What's your beef? | ||
| The only one that didn't pass was Ag. | ||
| And Ag didn't pass because the moderates, all the MAGA guys piled in here was mainly the moderates. | ||
| And there is some big issues with the Ag bill. | ||
| And the FDA, there's no doubt about that. | ||
| I would personally never pass the defense bill. | ||
| It would have been a hard no. | ||
| But I can understand of how to move this forward and now get down to the main, or at least the sidebar event, which all got their hair on fire, is the quote, oh my gosh, the government's going to shut down. | ||
| Do we have Bill Hemmer and Pete Buttigieg? | ||
| Is that ready yet? | ||
| I want to show you what Fox is doing this morning. | ||
| Here's what Fox is doing this morning. | ||
| They're putting shutdown porn on with two of my favorite fellas. | ||
| Bill Hemmer and Pete Buttigieg. | ||
| This is what Fox is doing. | ||
| Rupert Murdoch's, Lachlan Murdoch's Fox News. | ||
| This is how they're serving the Republic this morning. | ||
| Let's play it. | ||
| If we lose a week, a week-long shutdown could set us back by a month. | ||
| If a shutdown lasts a month, it could set us back by a year in terms of being able to hit those urgent staffing targets. | ||
|
unidentified
|
I just want to emphasize, we're far from that point yet, but again, we're talking about training, and no air traffic controllers are going to leave the job. | |
| Their pay would be docked, but they would get back pay eventually. | ||
| Here's my point. | ||
| Well, I want to mention one other thing, which is there are a lot of employees who might not get back pay because of their authorization lapsing too. | ||
|
unidentified
|
Deadlines tend to focus the mind. | |
| Would you agree? | ||
| Yeah, but the reason they focus the mind is that you rally to actually hit that deadline. | ||
| We hope and expect that House Republicans will do that, but at this point we have a responsibility to prepare for what happens if they fail to do that. | ||
| If Kevin McCarthy cannot deliver on the deal that he made with President Biden | ||
| Earlier this year and we're inside of 48 hours on his ability to keep that promise then we got a real problem across the country Disruptions that will again mount each day that that lapse continues and just set us back in important work that we're doing right now I mean, I know that sometimes federal workers get portrayed as sort of Pushing paper and the work they do doesn't matter some of the people are gonna get pulled off the job in my building Are the people developing? | ||
| The process to make sure that you could get compensated if an airline is responsible for you being delayed for hours and hours and it's their fault. | ||
| This is stuff that matters to people. | ||
| It's why we have these policies and these departments in the first place and shutting them down. | ||
| Not to mention letting service members go without pay. | ||
| It's just unacceptable. | ||
| I know Democrats put the focus on house reports. | ||
| So all day long on the Karl Rove, the Karl Rove's running the train. | ||
| The train's left the station on Fox. | ||
| All day long you're going to get shutdown porn. | ||
| Shutdown point non-stop. | ||
| No pushback. | ||
| You're just gonna get it all day long. | ||
| Has Fox, by the way, with Kudlow and all their guys, Steve Moore, they're all on there all the time. | ||
| The guys want the big tax cuts. | ||
| When we're sitting on 33 trillion dollars of debt and we're gonna do some math here for a second where I gotta get a whole lot worse and nobody's talking about it. | ||
| Is anybody up there having the adult conversation of what is the purpose of this? | ||
| What is the purpose of this? | ||
| They all knew that midnight on the 30th is going to strike. | ||
| Why are we here? | ||
| We're here because they are irresponsible. | ||
| We're here because they like driving crises. | ||
| Because this is how they jam up the American people. | ||
| They obfuscate. | ||
| They spin you. | ||
| They like this. | ||
| This is how they rule. | ||
| This is how they govern. | ||
| We said a couple of days ago, it's going to be very enlightening, illuminating. | ||
| In your awakening, in the awakening of the American people, see exactly who governs you. | ||
| Is it the people that you work so hard to send to Washington? | ||
| Or is it the corporatist, lobbyist, globalist, oligarchist powers that be elite in this country that do it for themselves? | ||
| Is, do I have EJ up yet? | ||
| Dave, let me get Dave Brad in here. | ||
| Dave, first off, can you please, because you know the way that the games are played in this town, and you particularly know McCarthy. | ||
| This shows you these politics, I mean, he can sit up there on something he has fought, and fought, and fought, and now try to take credit for the positive things that are happening. | ||
| Yeah. | ||
| No, well, the whole language, right? | ||
| The Wall Street Journal a couple days ago had a great piece on the new moral order is crumbling. | ||
| The New Moral Order has been a 30-40 year major project which features lying as its chief feature, the repudiation of truth. | ||
| And the control of narrative, right? | ||
| Karl Marx and his ideology and the neo-Marxist thing. | ||
| It's basically control of moral language, taking out the morality and the utter foundations of the Judeo-Christian West. | ||
| And you had some stuff in the cold open about people talking about decency. | ||
| Where do you think you get the term decency? | ||
| The Greeks didn't have decency. | ||
| The Roman Empire, you think the Roman Empire at zero when Jesus came on the scene and pronounced love? | ||
| For his brothers and sisters, you think they had decency? | ||
| No. | ||
| And so, that's what, it's an attack, a moral attack on all those features. | ||
| And so, when McCarthy's up there talking, one of the key threats to this republic right now is this threat of democracy. | ||
| Right? | ||
| Everybody's claiming, both sides are claiming, the other side's fascist. | ||
| There's one way not to have a fascist regime, and that's to have a smaller federal government. | ||
| But more importantly, you just saw the glimmers, the first glimmers of a true democracy in action last night, for the first time in 30 years. | ||
| I've never seen it. | ||
| A functioning democracy where you inform the people about what's in the bills for seven trillion dollars in spending. | ||
| If you want to talk to me about democracy, folks on the left, that's democracy in a Republican form of government. | ||
| And if you've got a better example, I'd like to hear it. | ||
| And then everybody on the left in the media talk about bearing false witness to be polite. | ||
| They're all saying, okay, so the House did its thing, but now the Senate's going to reject it, and the White House has already rejected it too, and they're going to veto it. | ||
| Well, that is not very democratic. | ||
| I'd like to see a debate. | ||
| The Senate hasn't done regular order, and the White House really is not in charge of the budget. | ||
| The budget is given to the House in the Constitution, where the body nearest the people, and the House has a unique role in crafting that budget. | ||
| And unfortunately in the past we haven't done our duty there, but now we are. | ||
| We're finally doing our duty, breaking it down. | ||
| We got to the most important bills, right? | ||
| And this sense of decency that Wall Street Journal piece actually listed the three pieces that Partially, were solved last night. | ||
| The border, you just heard the Sheriff, killings, murders are taking place in record numbers on the border. | ||
| Is that decency? | ||
| Or would it be more decent to shut down the border and have the rule of law which gives you ordered democracy and freedom instead of total chaos? | ||
| And then the same when it comes to the 50 trillion in debt. | ||
| Is it moral? | ||
| Is it decent to just continue with 50 trillion in debt? | ||
| At a 5% interest rate? | ||
| We've got evidence that just assuming a 5% interest rate right now kicks into about $1.5 trillion in interest payments alone. | ||
| In 10 years, when you have a full $50 trillion in debt at 5%, it's $2.5 trillion in interest payments. | ||
| And everybody knows that we're already in default. | ||
| We're going to have to solve it one way or the other. | ||
| And then I could go on and on on the moral indictment of this country Including our chief trading partner being a totalitarian surveillance state that we don't question. | ||
| Is that decency? | ||
| Of which we have a guy that sits in the Oval Office that has been on their payroll taking bribes from them and done corrective action to not confront them. | ||
| It shows you the rot of the system. | ||
| The system is rotted stem to stern and you're in the process of purging that rot. | ||
| And they hate it. | ||
| We now have notification, I believe, that they're going to bring up the CR at 11.30. | ||
| They're going to bring up the CR at 1130. | ||
| House will meet at 1130 to begin debate on a GOP-led continued resolution, still unclear whether they have enough votes for it to pass the House today. | ||
| We probably will go and try to get as much of that live coverage. | ||
| We'll pick it up from the floor. | ||
| It'll be pretty intense as we've been covering non-stop. | ||
| Do we have E.J. | ||
| and Tony? | ||
|
unidentified
|
E.J. | |
| and Tony, a couple things. | ||
| Number one, the Daily Caller, I just want to make sure, the Daily Caller's been doing a terrific job of Covering the economy, and they've got a great story of, you know, unbeknownst to a lot of people, the Biden regime came out yesterday, the Fed, somebody came out and actually did the official downgrade of GDP. | ||
| GDP looks around 2%, 2.1%, which remember, when you're in the 1 to 2%. | ||
| You're not in a mathematical or technical recession, but you're in a recession for the folks, the working class and middle class folks, okay? | ||
| Because there's a whole bunch of stuff that goes in that number that can kind of jack it up where they have a reset later. | ||
| But this means a... | ||
| Those types of numbers mean lost decade. | ||
| Our economy can't, we can't thrive. | ||
| First of all, we can't pay our bills. | ||
| A 2% growth? | ||
| And they're sitting there talking about a $2 trillion deficit? | ||
| It's outrageous. | ||
| EJ, why don't you update us on any updates on the economy, capital markets. | ||
| I want to get into this calculation that the three of us have kind of done on the back of the envelope with help from some hedge fund guys about what the real interest expense is going to be. | ||
| EJ, any opening thoughts? | ||
| Certainly, Steve. | ||
| I mean, in terms of the overall economy, what we've essentially seen is that it turns out that the economy was growing faster than previously estimated when Trump left office. | ||
| And since Biden took over, the economy has been now revised lower. | ||
| And it's not a matter of simply rearranging deck chairs, like some quarters were revised lower under Biden and others were revised up. | ||
| No, overall we still see about a half a percentage point downward revision. | ||
| Now that's pretty significant. | ||
| It may not sound like much. | ||
| But half of a percent is well over a billion dollars that the BEA essentially just snapped its fingers and poof, it's gone. | ||
| At the same time, inflation under Biden was revised higher. | ||
| And so, you know, the common man, I think, knew this already. | ||
| But the statisticians, of course, are standing there in shock saying, oh, my goodness, I can't believe inflation was even worse than we previously estimated all last year. | ||
| But, of course, it was. | ||
| So, this brings a lot of the quote-unquote official data more in line with private survey data, which I think is a good thing. | ||
| I think we can rely on these numbers as being more accurate. | ||
| I just wish we had them quite a while ago because they confirm what so many of us already knew. | ||
| In terms of looking forward then, you're absolutely right that we're looking at well over a trillion dollars in interest expense on the debt. | ||
| It's looking more and more like it's going to be $1.5 trillion in annual interest. | ||
| The reason for that is because the Treasury continues sucking all the oxygen out of the room. | ||
| They are borrowing so much money that savers simply can't keep up. | ||
| How do you attract more savers into the loanable funds market? | ||
| You need to offer a higher interest rate and that's what the Treasury is having to do. | ||
| But at the same time, you have a lot of private interests that are also looking to borrow and so they are forced to offer higher yields as well and compete with the Treasury. | ||
| What this is essentially doing is driving up interest rates even further, and now I think the Fed is going to be stuck playing catch-up, trying to raise its own interest rates further and continue to sell off the balance sheet. | ||
| All of that points to a contracting economy in the very near future. | ||
| So I wish I had better news, Steve, but things are not looking good because we cannot get the spending and borrowing under control. | ||
| This is what they're not talking about. | ||
| So I wanted to do a calculation. | ||
| If we can put that chart up, which has got the one-year Treasury at five and a half. | ||
| What is it? | ||
| I didn't look this morning. | ||
| What is the 10-year Treasury right now? | ||
| Can you look, Brad? | ||
| And just give me the quote on, or EJ. | ||
| EJ, what's the 10-year Treasury? | ||
| So put the chart up. | ||
| And you two are the economists. | ||
| Walk me through here. | ||
| But just back of the envelope. | ||
| Because I know there's hedge fund guys looking at this right now because of the intensity of the debate in Washington. | ||
| And the fact that they won't address what the problem is. | ||
| The problem is not a quote-unquote, what I call a de-financing of the apparatus. | ||
|
unidentified
|
4.5%? | |
| 4.5% okay. 10 years of 4.5% the one years at the 5%. We'll talk about inverted yield curves later as as as as omens about recessions. | ||
|
unidentified
|
Okay. | |
| But E.J., help me out. | ||
| If you look at the range on this inverted yield curve, if you look at the range from the three-month Treasury, and folks, the reason we're doing this, all this debt has to be rolled over. | ||
| The short-term gets rolled over every 90 days. | ||
| They've got all types of durations on these things. | ||
| If you just do the average at 33 trillion, and remember what this debate is about right now, this debt train's not going to stop. | ||
| It's going to continue. | ||
| We will actually argue that if you don't lance the boil now, you're structurally putting this in place, that you can never, you're on the abyss, on your point of no return, you can't come back. | ||
| But correct me if I'm wrong, Brett, if I just average this out at 5.5%, For the short term to the 4.7 for the out years, the 30 year, and do some basic averaging, let's say it's 5% overall, and I know this stuff rolls, so I'm not getting a perfect weighted average. | ||
| But EJ and Dave, correct me if I'm wrong, you're looking at interest payments in this coming year of north of one and a half trillion dollars. | ||
| Here's the point, here's the point. | ||
| Just like in bankruptcy, slowly at first and all at once, we are heading into a financial calamity. | ||
| Look at all these people, all these ribbon clerks up here that will not address it. | ||
| We're getting ready, we're facing a calamity that they will not address. | ||
| Because of what they've done and the overspending that drove the inflation in the first place. | ||
| Remember under Trump you had no inflation, right? | ||
| Had to kick the interest rates up. | ||
| This is what slowed down the economy as they tried to, the Fed. | ||
| But you have something here that's even beyond the Fed. | ||
| The cost of the money itself, and it's the law of large numbers. | ||
| You're so big right now. | ||
| Yeah, and so we're in such a bad time. | ||
| trillion and adding to it 2 trillion, 2.5 trillion, that the interest payments are going to explode the total amount, Dave Brat. | ||
| Yeah, and so we're in such a bad time. | ||
| You know, the markets, Wall Street, they've been expecting the Fed to go easy again and start printing money. | ||
| But the Fed can't precisely because they're doing the math that you just went through, So the other day, we had $1.5 trillion deficit spending plus $600 billion in interest expense. | ||
| Now we're saying it's $1.5 trillion plus $1.5 trillion. | ||
| So you're already at $3 trillion without any emergencies, and that's only through 11 months of the year. | ||
| Right? | ||
| And so then the numbers are exploding. | ||
| The Federal Reserve knows that, and they cannot pay that. | ||
| They know the federal government can't pay that, and they're in the middle of a political business cycle, and everybody knows it. | ||
| I want to make sure everybody understands this. | ||
| These are not firm and hard numbers. | ||
| We're doing this like in mergers and acquisitions. | ||
| You just say, look, I want to put the things together quickly to see directionally if this thing makes sense or not. | ||
| If it doesn't make sense directionally, we're not going to spend all this time doing merger models. | ||
| We're just showing you directionally, this is what's happening, EJ, you brought up the other day. | ||
| The refinancing, when you have 33 trillion dollars, and the Fed's got short terms, they got long terms, they got tens, they got thirties, they got fives, they got thirty days, they got the one years, all of it. | ||
| That's in a constant process of the New York Fed, which is the trading desk, refinancing this. | ||
| And now, at these interest rates, with the 500 basis point increase, This becomes like the thing itself. | ||
| This is where you're going to make it. | ||
| We are now becoming slaves to capital markets that the ability like President Trump's. | ||
| For example, the tax cuts of President Trump gave right come come due or they expire in January. | ||
| I think February of 2025, the first 30 days of his second term. | ||
| Think about it. | ||
| You're going to have such a narrow playing field that all your decision-making is going to be taken away. | ||
| Yeah, EJ, fire away, but I'll just say my Tea Party folks and conservatives, fiscal hawks, were always asking me, hey, when's it going to happen? | ||
| When's this bond default going to happen? | ||
| When's it finally going to hit? | ||
| It's hidden right now. | ||
| Now is when the Federal Reserve's waking up and EJ will explain even more. | ||
| Well, you're defaulting every day. | ||
| This is the printing of the money. | ||
| This is the purchasing power. | ||
| The guys that tell that you know you're defaulting, it's a practical default, are the bricks. | ||
| They're not down there spending all the time trying to get a basket of currencies and God help them, they've got to use the Chinese Yuan. | ||
| By the way, small financial news, Evergrande, the largest property developer in China, in mainland China, as we've warned you about, the biggest refinancing they've got to do, the chairman has just been arrested. | ||
| Uh, for, uh, for, uh, for crimes and fraud. | ||
| And, uh, this is what they do when they're about to step in and say, Oh my God, we got a problem. | ||
| Let's go get rid of the top 30 guys and blame them who have been giving them kickbacks and, and taking money. | ||
| This is the way the CCP rolls. | ||
| EJ, are we on the precipice now of the dead bomb? | ||
| The dead bomb that really now gets out of control because you don't have enough serious people up here in Capitol Hill talking about the real central problem of the nation. | ||
| Absolutely. | ||
| Because if you look at the volume of debt we have, if you look at what has happened with interest rates, not only in terms of where we are, but where we came from in such a short period, you are looking at a much worse situation than we had from 2007 to 2009. | ||
| There is a lot more debt. | ||
| uh... and we have unfortunately a system that is based on the easy refinancing of debt and that is simply gone away and what we're seeing right now for example is that investors are waking up to this and realizing that these rates are going to be higher for longer as we have been saying frankly for months but the street is finally waking up to this reality and now you're seeing not just the short-term interest rates which we've been watching very closely but you're also seeing the long-term interest rates | ||
| go up at a very very quick pace uh... the thirty-year treasury for example if i remember correctly i think that bond rate now is on pace for its fastest increase in terms of yield for any quarter since 2009. | ||
| And again, we all remember what happened back then with the financial crisis. | ||
| So unfortunately, I really think things are not headed in a good direction right now. | ||
| It's going to get very ugly pretty quickly. | ||
| EJ, hang on. | ||
| Very ugly now. | ||
| We've got McCarthy answering questions. | ||
| Let's go to the stakes and hear what he's got to say. | ||
|
unidentified
|
Okay. | |
| He knew the war room was coming in to listen, so he thought he'd wrap it up. | ||
| I think what we know as of right now, I think what we know as of right now, 1130, they're going to start debate on the CR. | ||
| Joe Biden has already said, dead on arrival, right? | ||
| He wants it. | ||
| They want a clean CR. | ||
| What they wanted is for 45 days. | ||
| The Senate wants it. | ||
| Just continue the madness. | ||
| Before I go to break, EJ, if you can hold with me. | ||
| I want to make sure people understand what happened last night, and over the last three or four nights, because a lot of the audience has been up watching this on our stream. | ||
| This has not happened in 30 years, has it? | ||
| No, no. | ||
| I am so proud of their 10 or 20, and you cannot believe the threats that come against you as a member, right? | ||
| The footsteps, the moral, the psychological stuff they throw at you. | ||
| And so for those guys to stand in the breach for you, right, for the American people, To produce a budget and it's more important than the budget, right? | ||
| As Steve's been saying in the war room. | ||
| This is about the functioning of our administrative state and the people want it back, right? | ||
| We're sick of it. | ||
| We are at wars. | ||
| Our border is a wide, it's not an embarrassment. | ||
| It's an assault that's leading to utter pain for little kids and women and families across the border. | ||
| It's a moral issue of the first order of magnitude. | ||
| And so I'm just proud of those guys. | ||
| We've never seen this. | ||
| We've taken the first baby steps, but they're not baby steps. | ||
| They're huge. | ||
| What you just heard is an earthquake in D.C., and if we continue with leaders who will represent you in the face of what they have to put up with, just my congratulations to the heroes who stood up. | ||
| The beginning of limited government. | ||
| If you want limited government, you're going to have to fight for it. | ||
| You're going to have to take this thing apart brick by brick. | ||
| Okay, we've got E.J. | ||
| and Tony. | ||
| We're going to get a lot of updates from Capitol Hill. | ||
| 11.30 we're going to start debating the CR. | ||
| The de-financing of Leviathan starts at one minute after midnight on Saturday night. | ||
| Stick with us. | ||
| Back in a moment. | ||
|
unidentified
|
Here's your host, Stephen K. Batts. | |
| Okay, welcome back. | ||
| Make sure you go to birchgold.com slash Bannon right now. | ||
| You'll talk to the team about all the tax-free opportunities they have, but also get the end of the dollar empire. | ||
| The fourth one is about when we came off the convertibility of gold back over one weekend in August of 1971, but also read The Debt Trap. | ||
| That's the third in the installment. | ||
| You want to get as up to speed as possible because it's going to be quite an ugly fire the weekend. | ||
| Kevin McCarthy said, right a month ago, he wants real po- this is what he wants real policy to look like on immigration attached to the CR. | ||
| Now remember, this is all optics, but finish the wall. | ||
| Finish the wall. | ||
| Come on, dude. | ||
| Paul Ryan fought us every freaking day. | ||
| Finish the wall. | ||
| Asylum reform. | ||
| How about asylum shutdown? | ||
| Remain in Mexico. | ||
| Stop cartels and fentanyl. | ||
| And one of the top political reporters up there said all of this is a non-starter in the United States Senate. | ||
| Think about it. | ||
| The senators and particularly the collaborationists that work With these radical Democrats are exacerbating the invasion of your country. | ||
| Dave Brett, I know you've got to bounce. | ||
| Summary thoughts of where we stand. | ||
| We're going to have you on all throughout the weekend as we cover this. | ||
| They're making a big deal about the de-financing at midnight. | ||
| What's the real, what is, where do we really stand? | ||
| What's the signal, not the noise? | ||
| Well, the real signal is you're going to see a 180 degree turn in terms of the relationship between the House and the Senate and the White House. | ||
| The Senate, Mitch McConnell said, I give Kevin McCarthy wide latitude, wide authority, which means power. | ||
| I give him power. | ||
| Because he knew what McCarthy was going to do earlier on, which was push the CR through. | ||
| All that language now is going to change drastically, right? | ||
| So if Mitch McConnell, the head of the Senate, and all the political views are just my own... Well, the head of the Republicans in the Senate. | ||
| Yeah, head of the Republicans in the Senate. | ||
| So if he gives all authority to McCarthy before, what's changed? | ||
| And what's changed, there's only one thing that's changed, and that you, the American people, have spoken. | ||
| And I congratulate the folks who stood strong. | ||
| But all of you out there make such a huge difference, I cannot tell you. | ||
| I get such kind emails every day from you. | ||
| It's just an honor for me to just have some share of being in this conversation with you. | ||
| And so, keep the country in your prayers. | ||
| Pray for both parties. | ||
| But pray that the American people's will is done because you guys make all the difference, right? | ||
| We always say on this show we'd rather have the first hundred people in the phone book run in this country than all these elites up here and the globalists with their moneyed interests. | ||
| And go read that Wall Street Journal if you got it on the new moral order is collapsing. | ||
| You are the formal moral order and you need to keep the Judeo-Christian tradition strong so that this country and this Republic will survive with a moral order. | ||
| A piece by Jerry Baker, the old editor of the Wall Street Journal, from England. | ||
| Quite, quite powerful. | ||
| Thank you for coming by today and your thoughts. | ||
| Remember, Dave Brat said he hadn't seen this in 30 years. | ||
| It's quite messy and it's quite tough, but that's why the war room posse, the cadre that's been built around this show, is at work here. | ||
| 202-225-3121, 202-224-3121 is the Senate, the House is 202-225-3121. | ||
|
unidentified
|
202-225-3121, 202-224-3121. | |
| Grace will put up the 117 that voted against Ukraine funding. | ||
| Remember, it's the majority, the majority. | ||
| That means, if we play by the rules of the House, the Republican conference, that all Ukraine funding is dead on arrival. | ||
| Right? | ||
| They didn't, they voted, the majority, the majority of the Republicans voted against even the $300 million last night. | ||
| E.J. | ||
| and Tony, is E.J. | ||
| back up rebooted? | ||
| E.J., any closing thoughts here on capital markets, the economy, this back of the envelope we did? | ||
| We're projecting significantly north of $1 trillion in interest payments next year alone. | ||
| This will blow a hole in the American economy. | ||
| The crowding out, the crowding out of government having to refinance this massive debt on a rolling basis will have a crowding out function of capital going to entrepreneurs. | ||
| E.J. | ||
| and Tony, your thoughts? | ||
| Steve, 100%. | ||
| Once again, this is the Treasury sucking all the oxygen out of the room. | ||
| And we have to remember that for every dollar the government spends, it has to be taken from the private sector first. | ||
| It can be taken right now through either inflation or explicit taxation, or it can be taken from future spending through borrowing. | ||
| And what we are seeing right now is just a massive transfer from the American people to the government. | ||
| It has to stop, Steve. | ||
| It really does. | ||
| We need to make sure that this appropriations fight is successful and that we actually stop Leviathan here, because otherwise it's going to swallow us all. | ||
| EJ, thank you very much. | ||
| And thank you for all the great work you're doing over there at Heritage and working with Steve Moore and the team. | ||
| It's just fantastic. | ||
| Thank you so much. | ||
| Thank you, Steve. | ||
| OK, they're going to put the rule up. | ||
| I think they're going to debate the rule at 1130. | ||
| We're going to try to cover as much of that as possible. | ||
| We've also got they're going to, I think, vote on the CR later in the afternoon. | ||
| We're going to check in with some people. | ||
| There's obviously a tremendous amount of opposition to this, but you're starting to hear people saying, hey, we got the appropriations done last night. | ||
| We want to have time to keep doing this. | ||
| So the argument right now is if you do a CR, do you give them a little more heroin? | ||
| Or do you say, hey, we got to be an adult here, cut them off at heroin, and that will give everybody's mind focus to get the appropriations bills done in the next week or so? | ||
| Of course, they're saying the Senate's going to reject all this. | ||
| The Senate doesn't care. | ||
| So you got to make sure we're going to shift our focus a little bit from the House over this weekend to the Senate. | ||
| You've done a great job in the House, including you got to remember, when this Ukraine thing started, the whole apparatus, Was in back of this. | ||
| There was only a handful of people that said, you know, I think there's a better way to go and I'm not so sure the eastern speaking Russian border of Ukraine is in the vital national security of the United States, particularly when there's an invasion on our southern border. | ||
| I mean an invasion that is just, you know, up in your face. | ||
| And you saw we got Ben Burquam down in McAllen, Texas. | ||
| He's addressing, they have 160 sheriffs from throughout the country. | ||
| You heard Sheriff Mike Lewis from Maryland. | ||
| And look at what he said. | ||
| The illegal aliens here, he can't do anything about Round-Em-Up, only the criminals. | ||
| He said the criminals are out of control. | ||
| Including the fact they had won three times the level of alcohol consumption in the state of America in three acts, driving on the wrong side of the road, almost had a head-on collision with a sheriff's deputy. | ||
| And he said fentanyl is out of control. | ||
| This is all... You can't sit there now and say this is by happenstance. | ||
| They want this to happen. | ||
| They want this to happen because the evidence has been put out about how awful this is, and they refuse to stop it. | ||
| If you saw these debates over the last couple of nights on some of these amendments, and the Democrats are just hard in there. | ||
| To the Democrats, there's no problem. | ||
| In fact, we're not spending enough. | ||
| They want even more money. | ||
| They want more of the same madness. | ||
| So the second hour, we're going to probably shift to the CR. | ||
| We've got people coming in and out. | ||
| We will juggle his head, Dave Bratz. | ||
| Thank you so much. | ||
| Always honored to have you in here, and thank you. | ||
| We would love it every time you're in town, stop by. | ||
| Otherwise, we'll get you down at Liberty as your vice provost. | ||
|
unidentified
|
Yep. | |
| Fantastic job. | ||
| The great Dave Bratz. | ||
| Okay, short commercial break. | ||
| We'll be back in the War Room in 90 seconds. |
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