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May 4, 2024 - Bannon's War Room
48:53
Episode 3587: The Hatred For MAGA By The Elite
Participants
Main voices
d
dave brat
05:44
p
phillip patrick
09:44
s
steve bannon
23:56
Appearances
d
dave walsh
03:15
l
larry fink
01:10
Clips
j
jake tapper
00:08
m
mike lindell
00:08
| Copy link to current segment

Speaker Time Text
steve bannon
This is the primal scream of a dying regime.
Pray for our enemies.
unidentified
Because we're going medieval on these people.
steve bannon
I got a free shot on 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.
jake tapper
And where do people like that go to share the big lie?
unidentified
MAGA Media.
jake tapper
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?
steve bannon
If that answer is to save my country, this country will be saved.
unidentified
War Room, here's your host, Stephen K. Babb.
steve bannon
Saturday, 4 April, Year of the Lord 2024.
184 and a wake up to election day.
Six months to election day starting tomorrow, but it's actually sooner than that.
I think Carolina, North Carolina starts in early September.
The rest of us, all the early voting is going to be late September to October.
So it's game on.
One of the reasons we're doing this is that this audience has changed the arc of history.
Particularly those of you that were with us back in 14 and 15 with President Trump through his first term.
Then those of you that came and rallied in 20 when he saw the Summer of Love had the massive victory in 2020 that was stolen.
Right?
We didn't close that one was stolen.
Particularly those that came and joined this group in early 2021 when President Trump Was a pariah and they sent him back like a lion and winner down to Mar-a-Lago and he made, I think, one of the most courageous choices in the history of this republic to return and say, no, I'm going to reclaim my administration.
Come now for his third victory in a second term.
You've bent the arc of history.
How?
Your confidence has created a reality.
And in that confidence, that optimism, that subjective reality, you've made an objective reality.
Think about that for a second.
You, this audience, you've changed from having that confidence.
And yes, Trump's our guy and Trump can do it.
MAGA can win.
These principles, we know we can win on this and we're not going to back off.
We're not going to quit.
Even though we have losses on occasion, and sometimes it looks like, man, it's a cloudy day and I just can't do this anymore.
You've changed the objective reality of this country.
Why do you think we cured it?
The mainstream media and the pundits and the uniparty and the ruling class of this country hate your guts.
They hate you more than they hate Trump.
He just happens to be the target in the foreground.
We do this to steal you for the fight ahead because, hey baby, you ain't seen nothing yet.
Now we're getting into it.
Go back to 15, go back to 16, go back to Trump's term, go back to 2020, go back to the COVID and the pandemic and the summer of love and the run up and stealing the election and the big fight and January 6 and Trump going his line and winning back to Mar-a-Lago.
And then all the two years with Fox banning him, dumping on him, DeSantis, Youngkin, all of it.
You ain't seen nothing yet.
So steal yourself.
And remember, they're going to talk about this for hundreds of years to come.
Dave, we know we're on the side of the righteous.
We have the understanding of what the problem is.
We put it out here, and that's why, oh gosh, Bannon and those guys were talking about this two years ago.
How'd that come to be?
Because we get guys like Eric Prince, like Colonel Derek Harvey, like Dave Walsh, like Dave Brad, people that, you know, oh, I kind of heard that guy, and you hear it, and you see it, and then you go check it out, and then you see what you see.
The veil comes down, off.
You see it.
You see it, and then you change history.
That's what this is about.
That's what this show is about.
We're not here for entertainment.
We're not here to make jokes and hang out like, you know, buddies, and we're gonna joke it up and laugh it up.
That's not this show.
Other shows do that, and they do it damn well.
Not here.
We're about political, societal combat.
And you're the tip of the spear of the legions.
Dave Brat, walk me through.
You got some charts.
I want to make sure our audience got something to chew on, right?
Because you teach like a postgraduate.
I'll tell you, the economics and capital markets here is like postgraduate level.
So if you have a high school degree and you're a thing of the show and you follow along, you're getting what they teach in like the second year of Harvard Business School.
Dave Brat.
dave brat
Yeah, I don't toot my own horn.
This is due to you, the Oxford Don, but you're getting better than what they teach you at Harvard because we don't just do highly mathematical models, right?
We give you the history, the ethics, the morality, how it fits into the Judeo-Christian West.
And I got a few charts that fit into the broader story.
I'm a free market guy, right?
So ordinarily, I don't like taxes, but I'm going around talking to my free market guys and whatever, and they're into these pristine, elegant mathematical models when the world is at kinetic war.
Sorry!
You know, the models never worked in the past.
And so the charts I'm about ready to give you shed a new wrinkle on what the super-rich have been up to over the last decades.
If Denver wants to put up the first chart, it shows the 400 richest Americans paid more than half of their income In taxes back in the 60s, right?
So the super-rich paid over half their incomes.
And this is back when we didn't have problems and economics did work somewhat, right?
Because even the robber barons and the Gilded Ages, they were investing in capital equipment.
You know, I think Henry Ford plowing money back into capital, putting capital in the hands of the American worker.
When you put capital in the hands of the American worker, magical things happen because the American people are great.
When you reduce the American people to nothingness, that what we're currently doing now, when you ship all the manufacturing abroad to China, when you sell out your country, When you use cheap illegal labor and displace Americans to enhance your own profits, we got a problem on our hands.
Houston, you have broken the social contract.
So I'm still a capitalist.
I'm still a free market guy.
But you got to be crazy to think everything's the same.
Next chart, Denver.
Here's the massive change.
You will see over the last few decades, the amount the super rich paid goes from over half down to just 23% on this chart.
And when you put it together, right, the next chart, Denver, shows the convergence.
The top line is the decline in the amount the super rich pay.
And now, based on their wealth, the 26 top billionaires paid an average income tax rate of just 4.8% over the recent six years.
Let me say that again.
Based on their wealth growth, And this is all at the next chart.
I'll show you where to find it.
26 top billionaires paid an average income tax rate of just 4.8%, right?
So not even the 23%.
This gets very complex with realized versus unrealized and wealth taxes.
And I don't want to hit the great American manufacturers.
There's some great heroes out there in the private sector.
That's not what we're talking about here.
But the next chart, Denver, this is where you can find a tax fairness.
Up at the top line, you'll see Jeff Bezos with effective tax rate on reported income of 23%.
The next yellow box, effective tax rate on wealth growth at just 1%, right?
1%.
And you'll see some big numbers there under wealth growth, $105 billion in wealth growth for one person.
So that's fine, unless you're getting your money with China deals, unless you're a monopoly, unless you have federal, state, and local government contracts which basically make you a monopolist.
If any of those are the case, then sorry, your cheap, low tax rates have to come to an end, and you need to pay your fair share, and we need to rebuild the American workers, bring the capital back to the states.
And then finally, I did some China research.
You know, everybody, we haven't been covering that as much, but China is having some issues, but they're fighting back.
And the next chart, Denver, if you want to show it, they're probably going aggressive right now and devaluing the yuan, right, their currency.
And the reason they're doing that is they were trying to head toward a consumer economy like we have, right?
70% of our economy is the consumer.
They've just had an investment economy.
They've coerced through force, right?
The government owns a monopoly on the use of force, is a famous definition that goes back to fascism.
So they can coerce their people to save 40%, which turns into capital investment, and they shove that around.
But there's only so many ghost cities and bullet trains and infrastructure projects you can do.
So they're taking their money back from the rest of the world.
The Belt and Road is collapsing.
They're navel-gazing right now, right?
They're looking inward.
Xi's last speech said we're going full-on Marxist-Leninist.
There's going to be no more economic reforms, right?
That means working with the global economy.
And we're on a war footing.
No more China language in China, right?
No more Confucian stuff.
No more Buddhist peace and harmony stuff.
And so this devaluation they're doing, is an attack.
They're trying to sell more of their products to us, and it's up to us to respond.
steve bannon
You can also, this is what Yellen's yammering about, oh, their excess manufacturing and their excess capacity.
This is the problems we identified with Trump.
This is about the decoupling.
You can tell there's something going on, folks, because they're hoarding gold and oil and natural resources.
I think they're getting ready, potentially, for a huge devaluation.
So, currency wars, Could be upon us.
Dave, we're going to have you back on next week.
Amazing analysis.
Where do people go?
You put your charts up on Getter all the time.
Where do people go to get them?
dave brat
Yep, I'll put them all up today.
Brad Economics and what you just said.
There's extended articles I'll post.
What you just said is right.
They're hoarding commodities and none of it is designed to help us.
It's all designed to hurt us as the whole show focused on today.
So Brad Economics on Getter and I got an email there.
Get me.
I'm going around the country giving talks and get me if you want me to come to a city near you.
Thank you all.
God bless.
steve bannon
Okay, fantastic.
Dave, Brad, and thank you for the big picture.
Very few people can go from the spiritual and religious down to the nuts and bolts of the Chinese economy, of how they're hoarding.
There's something big.
China, their transition to the consumer economy didn't work.
They knee-jerk back to what they know.
It's a command and control economy with state capitalism.
Remember, the Chinese families, the five factions that own the Chinese Communist Party are the wealthiest on earth.
I know that makes Lao Baijing incredibly angry, but that's just the facts.
There's something going on there.
They're preparing for a kinetic war.
They're preparing the South China Sea.
They're preparing in the Taiwan Straits.
They've got a whole plan in the island chains.
So if it's not put down here, because they're one of the key parts, if not the key part of folks, in back of this, of funding what's happening in these colleges, so it's outrageous.
Dave Brett, honored to have you on here.
Your range, as they say in baseball or in sports or in acting, your range is unbelievable, sir.
Dave Brett.
And to take that much time on a Saturday.
Mike Lindell, are you in your orchard?
Where in the hell are you?
You come up here in Mar-a-Lago one day, or some other beautiful place the next day.
Where are you?
unidentified
I'm in Texas right now.
And I'm not relaxing, everybody.
I've been working on a new plan that we're going to do in all 3,143 counties.
It's my new Flipping Democrats project.
And as long as we're approaching all the counties anyway, you can get out in front of this, everybody, and check it out at LyndalePlan.com.
Steve, you have so many groups going after our base and the independents.
We're going right into the heart of the Democrats.
steve bannon
We're going to educate them.
unidentified
We're going to say, hey, because their eyes are open now.
They're open to hearing all the problems we have.
They can see it right in front of them.
And we've been doing this on a small level.
I just spent a lot of time, remember, in Chicago about a month ago.
It was overwhelming.
Everybody was flipping to this common sense bucket of Donald Trump.
So we're going to take what we learned from them and we're going to go with all my teams.
We have over 3,000 or 300,000 people in all 50 states.
Approach every county.
We're going to work in every county for the next four months and work on flipping these Democrats to the common sense bucket.
A lot of it just involves educating them.
Educating them.
What is the new Republican party of common sense?
What is this?
What is it going to manifest to?
And we already have an example of that.
We have December of 2019 before they gave us the China virus.
mike lindell
We had what politics can be to help all people, not just a party or no people.
steve bannon
Mike, hang on.
I'm going to hold you to the break and come back and talk about deals.
But he just nailed something right there.
And people talk about this all the time.
If you go back and remind people the headwinds Trump had in his first term, And what the summer and fall and Christmas of 2019 was in those numbers, the three and a half percent economic growth, the wages of working class and non-college graduates, the low interest rates, right?
Incredible.
Low inflation, low interest rates, real economic growth.
And done with Trump.
And Janet Yellen was the Fed chair, taking almost a trillion dollars of liquidity out of the system, shrinking the balance sheet.
of the Federal Reserve.
Stunning!
Stunning!
Back in a moment.
You know, with all this uncertainty, make sure that your health is also not jeopardized.
You saw this the other day.
A guy, I think a former police officer, died because he couldn't get the chemotherapy drugs in the United States of America.
This is only increasing, this is just not the supply chains in China, the whole complex system.
There's something wrong, you know, I had Dr. Sean on the other day.
But what we've provided, just go over to JACE Medical, jace.com, and just go to JACE, J-A-C-E, and immerse yourself in the information there, find out more about it.
Particularly for the drugs you need every day, but there's something seriously, seriously wrong.
Nobody can quite put their finger on it, but seriously wrong about the supply chain on medicines and drugs.
This is more than hurricanes hitting.
This is more than cyber.
There's something deeply wrong.
We're going to try to get some Mike Lindell, our audience, it's a Saturday morning.
We're finishing now with artificial intelligence and energy is going to blow people's heads up with actually what they're thinking of what's actually happening versus what they're planning for.
They want to talk deals.
Give me a deal.
unidentified
Well, we're going to extend the deal that we have exclusive for the War Room Posse, everybody.
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And if you go to the website now, scroll down until you see Steve there, all these specials, the $25 specials are still there.
That's the premium where it all started.
Over 80 million sold.
$25, king or queen, doesn't matter.
The sheets over there are still on sale for $25, as low as $25.
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So Steve, the warm room posse's made it all possible that I can sit here and get this plan ready and have a piece about that.
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steve bannon
We're going to get you back on.
I want to talk every day about this flipping independents and Democrats.
You're the kind of guy who can do it because you're kind of a man of the people.
The people don't think of you as some stiff country club Republican.
Mike Lindell, great work over the weekend.
We'll see you on Monday, brother.
MyPillow.com.
Permacore Worms. Special deals all over the place. Mike Lindell's going to have his way to thank those people that had his back during some of the darkest days in the country. Okay, Larry Fink, one of our favorites. New MAGA Larry Fink. That's who's trying to be a MAGA adjacent.
larry fink
Let's go and play this. And I do believe to properly build out AI, we're talking about trillions of dollars of investing. So data centers today could be as much as 200 megahertz.
and they're...
They're now talking about data centers are going to be 1 gigawatt.
That powers a city.
There was one tech company that I spoke to the CEO last week who said right now all their data centers is about 5 gigawatts.
By 2030 they need 30 gigawatts. 30.
The amount of power that's needed to use AI has huge impact in society.
Where's that power going to come from?
Are we going to take it off the grid?
What does it mean for elevated energy prices for everybody else if it's that?
I think it's going to represent some huge societal questions that we have not addressed the negative side.
Forget about the use of it, but just the generation of it is massive power.
OK, but that that is a huge investment opportunity so that we, you know, the world is going to be short power.
steve bannon
Short power.
There's so much to... Okay, so Joe, Alan, the AI, our AI editor, and Walsh, we're going to get together over the weekend and then next week we're going to come and hopefully maybe take an hour on the 6 o'clock show and break this whole thing down.
But I just had to get to this.
And Dave, just what he said right there.
That is because there's so many in the climate cult They think they're so much smarter than MAGA.
MAGA is a bunch of rubes that breathe through their mouths and wear bib overalls and wear red ball caps, right?
And say Donald Trump is God, right?
That's what they think.
They're so bright.
If you look at what Larry Fink's talking about right there of the plans already for AI as they look forward.
Just the investment to get the computing power, but then when you get, I mean, the computer ability to do it, the algorithms to do it, but then we look at the data centers and actually the power to drive it.
Correct me if I'm wrong, right there it's insane.
You change, you literally change the entire structure of societal, the foundations of society.
It requires so much power, unless you go to immediately nuclear power, or if they come up with nuclear fusion.
Am I wrong?
Because everything they're talking about on the power side is absolutely different than what Larry Fink's talking about having to go, and you had the AI engine that's driving everything right now.
Dave Walsh, make it make sense to us.
dave walsh
Well, for sure it's true.
Server centers, when they hit twelve, fourteen years ago, or three, four hundred megawatt power consumers, really big ones, we built for Dominion, Warren County Energy Center, up west of Reston, about fifteen hundred megawatts to support growing server center need up near western, northern Virginia.
Now these AI facilities, two to three times the energy... Hold it.
steve bannon
Stop.
Hold it.
dave walsh
Hold it.
steve bannon
Let's be blunt.
You're up there building the power for the deep state.
unidentified
The reason they need it, that's the center of the deep state, baby.
steve bannon
That's the Pentagon's suburban office.
But continue on.
dave walsh
Well, but now the AI, you're talking about facilities with, he's right, 600 to 1,000 megawatts each.
Huge!
1,000 megawatts powers about a million people.
So yeah, a city.
Now remember, BlackRock invests in everything.
They're also an investor in independently-owned power plants.
They've always been.
independent power projects, wind, solar, and gas fired combined cycle.
They're an investor in everything, including power generation.
So he's correctly pointing out that with this kind of energy demand coming up with server centers and AI, there is no way.
The solar and wind that are part-time intermittent resources, wind 37% of the time, solar operates 20% of the time, 19% of the time, that deficient energy will not work for mass use of power.
steve bannon
Hold it, hold it, hold it.
Hang on, hang on.
Yes, I agree.
The plan that they're talking about, the climate plan, But right now, if you hit his... Forget the craziness of the climate plan.
If we were hitting on all cylinders, all power would essentially be taken for AI.
You'd have to have a fundamental restructuring of agriculture and transportation, and basically just the way we live.
Would we not?
Or have I done the math wrong?
dave walsh
Yeah, no, this is just another incremental adder on top of massive power consumption.
Massive power consumption also, of course, by individuals and residents, but pulp and paper, aluminum, aluminum, very heavy user of power, steelmaking, petrochemical plants, refineries, automaking, hospitals, all Existing huge users of electricity.
We're in short supply for traditional consumers already.
There's a boom underway right now across the utility industry of now buying gas turbines for simple cycle use to augment the shortage created by wind and solar.
We've really effectively built very few new major power plants in this country in the last six years, five to six years.
Now we're in short supply already.
Most regions calling for six to seven percent electricity growth in the next year, demand growth in the next year.
The whole ten-year plan with the renewables boom was only four and a half percent growth in ten years of electricity supply.
steve bannon
Hold it, hold it, hold it.
dave walsh
We're in a horrible place right now.
steve bannon
Hang on.
We're in a horrible place, and if you follow what Larry Fink's saying on AI, we're going to be in a more horrible place.
Last question, you're saying gas turbines, you've been telling me, my destroyer was a gas turbine, the first the U.S.
Navy ever built.
So I'm very familiar with gas turbines.
I thought the Biden regime was taking out gas stoves out of federal buildings and don't want any more gas stoves, at the same time that the industry is actually going back to gas and gas turbine?
dave walsh
The Biden administration also wants to shut down gas fired power generation by the mid to late 30s.
They've said this repeatedly, but it is the only technology left in the near term to provide base load, continuous duty and intermediate power.
There's nothing else that now that they're going to shut down the balance of our coal supply.
Which is an increasing disaster.
Fink is right, and he appears to be right, based on overall demand.
We're not making demand.
This is what I've been saying for three years.
The only way out of this for the next 10 years is to build out a lot more gas fire generation, because as we've talked before, the reciprocal of the time that these renewables don't work, the only thing left to do is install gas turbines to meet You're going to see Dave Walsh.
Dave Walsh is going to be 100% right in this whole thing.
Walsh, where do we get to you on social media, brother?
You're a prophet.
unidentified
You can find me on Getter at Dave Walsh Energy and True Social the same.
steve bannon
is going to be 100% right in this whole thing. Walsh, where do we get to you on social media, brother? You're a prophet. You can find me on the Getter at Dave Walsh Energy and True Social the same. Thank you, Steve. Dave Walsh has become one of the most brilliant guys in this country about talking about energy.
He's been dead spot on since he started on the show a couple years ago, and now it's all becoming clear of what has to happen.
If you look at Larry Fink and what this, the whole fantasy on artificial intelligence, the dangerous fantasy, restructuring of all society.
Okay, Philip Patrick, Birch Gold, we're going to talk capital markets, we're going to talk monetary theory, fiat currency, all of it, he's just about up.
Also, Get yourself a big pot.
Maybe now's the time to do it.
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Philip Patrick joins us from Birch Gold next.
You're not going to want to miss this.
Capital Markets and the Economy, next in The War Room.
unidentified
War Room, here's your host, Stephen K. Vance.
steve bannon
Okay, welcome back.
Now, Philip Patrick falls into a category of like Mike Davis and Naomi Wolf and Caroline Wren and Dave Brat and Dave Walsh and a couple of dozen others, people we've had on the show.
Many times over the years, they're now becoming rock stars, and so it's very hard to book.
Phillip, I'm so glad to get you.
Now we got you on the Saturday show.
Is it just so intense during the week, given everything that's happening in the markets, everything that's happening in gold?
Is that, it just makes it just too, because I know you deal with customers.
We send people to you all the time, the feedback we get.
But is it just too intense?
It used to be like that for me when I was working as an investment banker.
I said it was just, it's just too much going on during the week.
You got to get to me on the weekends.
Is that reality now, Birchgold?
phillip patrick
It is getting crazy, Steve.
I think people are waking up to the realities of Biden's economy, and they are taking action to protect themselves.
And that means busy days, but it's all for the good.
So very happy and very happy to be on on a Saturday.
steve bannon
This is one of the reasons I want to have you on.
I know Rogoff put out this piece that I've talked about in last night's show and then again earlier this morning was on the magical thinking on debt.
Remember, he's the guy that's really, I think, in our business, when you look as people have watched capital markets, he wrote the seminal book.
I think the book's got to be 10 years old now.
It's called This Time Will Be Completely Different or something like that.
And he and his Harvard colleague went back I think they went back a thousand years, but they went to every different major empire or major country, and whether it's a dictatorship or a democracy or a republic, they all had the same line.
When their barring gets so much, and it goes over really the line of their GDP, they always tell each other, and they always say, hey, this time it's completely different for the following reasons.
And it never is.
I think he's got a hundred percent hit ratio.
And he finally came out with this piece that said this is going to be the end of magical debt thinking.
And essentially one of his things was about modern monetary theory.
It's just what's been accepted By our betters.
And when I say that, the War Room Posse, this is a working class, middle class, these are people, I mean, we have hedge fund managers and TV producers, a lot of people watch the shows, they can pick up what's going on, but the reason MAGA and the reason the guy who wrote the book finished what we started about this movement and this show particularly, is the fact that people are engaged in what's happening, but they want to understand the economy.
And, you know, This whole thing of modern monetary theory and other theories that were put to work are so out of control, and people just sit there with their common sense and go, I don't understand this.
How can they go on?
But I need to get stability in my financial life.
And it looks like gold's been a hedge for, I don't know, 8,000 years of up and downs of everything that's in the book.
That Rogoff wrote in his warning.
And so, hey, for the first time, and many of these people, most people are not gold bugs.
I mean, they're not people that followed Ron Paul or believe that we should go back to a gold-backed economy.
But they're people sitting there going, hey, I can see the purchasing power of my dollar just getting destroyed every day.
What do you have to say to them?
phillip patrick
I mean, look, it's fairly obvious, right?
Jamie Dimon called the debt the most predictable crisis ever.
It is exactly that, right?
At the end of the day, this is essentially how every empire in history has collapsed from the Roman Empire up until World War II.
People have to realize the government isn't Santa Claus, right?
Deficit spending doesn't create wealth.
All it does is devalue every other dollar bill in existence.
And what we're seeing on the back of that is inflation, right?
And inflation is the most regressive sort of tax.
What it does is disproportionately punish the poorest people who own the few assets and actually makes them dependent on the government.
There's a reason that Lenin called banknote printing press the machine gun of communism.
He said, and this is a direct quote, he said, by a continuing process of inflation, government can confiscate secretly and unobserved an important part of the wealth of their citizens.
And it's a route that autocracies have gone down time and time again.
Does this ring any bells?
Consider the situation we're in at the moment.
Nearly half the job growth over the last three years has been in government jobs because, of course, we've got to provide services for all those immigrants flooding over the border.
Inflation is essentially how the government steals from everybody a little bit at a time to transfer wealth to their supporters.
Inflation creates winners and losers.
99% of American people will be the losers.
The government and their cronies, 1% will be the winners.
But this has never worked in history, right?
Like I said, from the Roman Empire up until today, it ends in one way, and that is destruction of currency.
And it doesn't bode well for our long-term prospects and by the world.
The world is, by the way, the world is waking up.
We have a world now actively de-dollarizing because they see the writing on the wall.
steve bannon
When you see, and I think the reason Rogoff put this out, when you see Biden's current plan and the acquiescence in this, and I started the show with this so people have to bear with me, but it's the reason I'm so adamant about a motion to vacate on Johnson, because we have to take a stand here.
McCarthy went because of the debt deal he did.
He gave Biden unlimited spending and unlimited deficits until past the 2024 election for two years.
Johnson's just continued that.
Right?
Johnson's just essentially continue that.
Their strategy, both at the Fed and with Janet Yellen, the Biden regime, so the executive branch, but a compliant Congress, because they're in on the fix, is essentially to continue to run these deficits, to have the embedded inflation, to basically inflate their way out of this, and in doing so, crush, because of drop in purchasing power, to crush the working class and middle class, to do it on their backs.
Is there Any doubt in your mind, from the empirical evidence that you have seen, that that is their plan and that that will be their outcome, sir?
That will be the outcome, sir?
phillip patrick
Absolutely not.
Like I said, this is the most predictable problem ever, and yet they continue down this path.
And the numbers are getting worse, not better, right?
In the fourth quarter of 2023, the Treasury issued $7 trillion in new debt.
In just three months, right?
For the entire year, it came to $23 trillion total.
That's a combination of new spending and rolling over old debt.
There are now $27 trillion in government IOUs floating around, up 60% since the pandemic, and one third of them have fresh ink on them.
At this point, we've got a federal debt rising by a trillion dollars, Every 90 days.
It's an absurdity.
And all of this, when the world, like I said, is actively de-dollarizing, there is no excuse for such wasteful spending outside of the more nefarious.
As you mentioned, there is only one way to really combat $35 trillion in debt, and that's to inflate it away.
And yes, it's positive for the debt, but who suffers?
It's the American people.
We're the ones that suffer the consequences.
It's the way it's always been, and it's the way it's playing out now.
steve bannon
You see, this is, the de-dollarization is not the problem.
It's a symptom of the problem.
Because they all have, and these central banks and the governments, they have guys that went to Sloan, they have guys that went to Harvard, they have guys that went to Stanford, and, you know, what, to Dalton, and to, you know, University of Chicago.
They have all those people, and they have the HP-12C.
They can run the numbers.
This is not quantum mechanics.
It's pretty straightforward.
The de-dollarization, see, Philip, we've been called, this show and this audience, in fact, on the subtitle of the book, Finish What We Started, the MAGA movement's ground war to end democracy.
To end democracy.
He makes the case in the entire book of how this is actually how democracy works at the grassroots.
We've been called on the America First side, the agents of chaos in America because we want to destroy the post-war international rules-based order.
That order, more than the trade deals and the commerce, even more than the American military security underwriting that's cost us trillions and trillions.
The underpinning of that, sir, is it not Bretton Woods and the dollars, the prime reserve currency, and are not the same people?
that Hector, this audience every day about how they're anarchist and agents of chaos.
Are they not the ones destroying the dollar?
And you can see it in the BRICS nations.
The global South is saying, yo, we understand what's going on here and we're not going to be a participant in it.
Philip Patrick.
phillip patrick
Look, de-dollarization isn't the problem, it's the effect of the problem, right?
Demand is getting killed by external forces, but we're killing the dollar domestically.
We are creating the argument for governments around the world.
And look at what's happening, right?
On the back of sanctioning Ukraine, China are now buying oil from Saudi Arabia in Chinese yuan, the petrodollar, which gave the dollar a lot of its strength.
This is a sacrosanct agreement.
from the 70s up until today is effectively over.
And the reality is, you know, if I'm in charge of, you know, BRICS nation's economy, it doesn't make sense for them to hold dollars anymore.
And when it doesn't rationally make sense, it's no wonder the world, like I said, is actively de-dollarizing.
But the problems are here.
It's this administration that are making the argument easy for governments around the world.
And I don't think de-dollarization is a train we can stop.
And at the end of the day, that is a big problem when this administration is hell bent on increasing dollar supply.
At the end of the day, currency strength is dictated at a basic level.
by two things, supply and demand.
And when we have an administration that is actively pushing to increase supply, while the rest of the world is moving away from the dollar and killing demand, like I said, this only ends one way.
It's only ended one way throughout history.
And they know it.
steve bannon
I want to go back.
You're saying the de-dollarization, you don't see that, you see that process not only not stopping, but accelerating?
phillip patrick
Yeah, I do.
At the end of the day, we're fueling it, right?
Domestic policy increasing the money supply significantly leads to a devaluation of currency, right?
The dollar's lost 17% of its purchasing power since the pandemic.
Gold is up over 20% in that same time period.
Why on earth would you hold a plummeting dollar when you can hold an asset that increases in those climates?
Secondly, as we said before, by seizing Russia's assets, we essentially told our enemies, you make a decision that we disagree with, your assets can become liabilities overnight.
Not only that, we could give them to your enemies to fight against you.
Why rationally would you continue to hold dollars in a climate like that?
It doesn't make sense.
The Brits are now committed to doing it.
The petrodollar essentially is no longer.
And I think that will continue.
And as that continues, We'll start to see a weaker dollar over time.
The weaker the dollar becomes, ultimately, the weaker the longer-term argument for the dollar as a global reserve currency will become.
I think we're a ways away from that.
The dollar is still, I've said it before, the tallest midget in the room.
But as de-dollarization continues, as supply continues to increase, that argument won't be as strong anymore.
And we lose that official status, the game is up.
steve bannon
You're saying the canary in the mineshaft is the petrodollar.
People, when we're the prime reserve currency, that means every transaction in the world has to be converted into dollars to take place, whether you're giving to a charity in South America, an orphanage in South America, or whether you're completing a drug deal in Thailand, right?
The good and the dollar works for the good and the not good in this world.
It's just it is the principal source of currency.
It's all translated.
And right now you see in the petrodollar what they're doing is baskets of currencies, even sometimes taking the currency risk.
They're working out every different way they can get off the dollar.
Now as Philip says, the dollar's primary source of currency is not going to end overnight.
But it's that increasing de-dollarization that's going to add to the turmoil.
Let's take a short commercial break.
I'm going to ask Philip when we get back.
For those people that are not, don't know anything about precious metals, are not gold bugs, don't want to go back to the gold standard, how do they begin to understand this and how do they begin to get access to the information really in this time of turbulence?
Because in times of turbulence, the smartest people in the world look for what's called a hedge.
Right, a hedge against that turbulence.
That's what gold has been for 8,000 years.
We're gonna take a short commercial break.
We're lucky to have Philip Patrick from Birch Gold on today.
Short break, back in a moment.
unidentified
War Room.
Here's your host, Stephen K. Bamm.
steve bannon
Okay, Philip Patrick joins me.
Philip, so I want to walk through the concept of what a hedge is.
And this is for people, even if you've purchased gold before, if you've got some gold, or particularly if you're not what we call a gold bugger, one of these people not always hammering, which I know some people in the world are impossible to go back to the gold standard.
I know now, like we have Jim Rickards as one of our contributors now over at, and if you want to get more about Jim, go to RickardsWarRoom.com for his strategic intelligence newsletter.
I recommend everybody go check it out.
You get a free, if you order, you get a free, the Currency War book, which to me was the definitive book that came out about 12 years ago.
And Jim teaches economic warfare at the Army War College, I think it is.
You know, Rickards is not a gold bug.
He's not a gold standard guy.
He said, you know, hey, I'm looking at going buying gold more than ever.
I have a couple of hedge fund guys I know that are among the smartest people I know about capital markets.
For the first time in the history of their hedge funds, they're putting a significant amount of money in gold as a hedge.
The central banks of the world, 22, 23, and now in the first couple months of 24, record rates or near record rates of the purchase of gold.
With their financial analyst at the banks that all went to Stanford all went to Harvard Coming up with this at least a portion of their assets to say the Chinese are on an all-time buying binge Why is it for people who are not gold bucks?
What did we mean by hedge and why are other big institutional entities and high net worth individuals, why are they reverting back to something that we thought was just a relic of the Sumerian Empire, right, in the Egyptians?
Why is that happening in the 21st century when, you know, Larry Fink is talking about artificial intelligence every day, sir?
phillip patrick
Look, you know, what does a hedge mean?
It is a form of, it's a financial term for protection or essentially a form of insurance.
And the reason that people are looking at gold today is simply because of the nature of our problems, right?
We mentioned before 2022, 2023, single biggest years for gold buying in central bank history.
And the reason that they're buying them, part of it is de-dollarization, as we mentioned.
But the other part is, in a way, they're facing the same challenges that we are.
Economic uncertainty, inflation, a loss of purchasing power.
Central banks need dollars for international trade, but they don't want to hold dollars.
They're watching a federal government print it into oblivion, and they're hedging their dollar exposure using gold.
Because these same problems that we talk about, right?
We talk inflation, we talk dollar devaluation, we talk the potential for recession.
These things all function as very positive drivers for safe haven commodities, right?
Inflation drives gold and silver up.
When dollars go down, Right.
So they're a very good way to protect against the specific problems that we have.
And, you know, I've never seen a more conducive climate for gold and silver than the ones I see today.
The other side of it is in this climate, the options out there to hedge are so limited.
Right.
When we were worried before about the domestic economy, we can look at emerging markets or European markets as a hedge.
What we have today is a global recession, right?
So given the lack of options, given the nature of our problems, precious metals in this climate are about, well, maybe not the only way, but certainly the best way to hedge against the problems that we have.
And that is why hedge funds, as you mentioned, who traditionally have been looking at other assets, are really focusing in on precious metals today because they really suit the climate that we're in.
steve bannon
I know you're one of the, you're the lead analyst over there for Birch, just before we bounce on a Saturday.
Andrew Ross Sorkin, the New York Times columnist that sits in on every morning on CNBC is one of the major voices kind of in the business community, understanding economics.
He's the columnist over there for that and very well read.
He said on CNBC on the morning on Squawk Box about a week ago, he said, look, There's really nothing Biden or the Fed can do between now and election day.
And people have to understand when I say election day, you know, early voting, I think ballots get dropped in North Carolina.
I think it is September 10th.
So, you know, people start voting here in September and October.
A lot of people.
Sorkin said that he said, hey, particularly that's a quite liberal, you know, with Jim Cramer and that crowd.
He said, look, you've got to face facts.
When you look at what's there, there's not a lot that's going to change.
There's not a lot that's going to change about inflation for the better.
There's not a lot that's going to change about prices.
There's not a ton that's going to change about employment and the gap between wages and real wages.
There's not a lot that's going to change about capital markets.
It's kind of, he's not predicting stock markets or bond markets.
He said, these, these forces are so big And so embedded that until there's a change, and that change would be Trump, there's not going to be a lot of things that change between now and at least on election day.
Is that also your belief?
phillip patrick
Yeah, I agree vehemently, and it's because of the sheer number of problems.
It's put the Federal Reserve in a very tough position.
What can they do, right?
If they raise interest rates, it means torpedoing the banks, right?
We saw what happened to SVB.
We saw what happened with Republic First just a few days ago, right?
Lowering interest rates means surrendering the fight I agree.
I don't expect anything dramatic to change between now and the election.
numbers are double the Federal Reserve target. So what option does it leave them? It leaves them, I think, the only option, which is to leave weights where they are and see this continuation of the inflationary trend. But the reality is, from the Fed's perspective, there are no good options at the moment. So I agree. I don't expect anything dramatic to change between now and the election. If we don't get the result we want in the election, I don't see any changes moving forward.
So 2024, as we've said many times, is the most important election of my lifetime, but I'm not expecting anything crazy, just a continuation of this same nonsense between now and November.
steve bannon
If there's not a dramatic, and I mean dramatic, it's one of the reasons we're on this motion to vacate and we were the ones leading the fight against the debt ceiling fight.
If there's not a dramatic change in trajectory, this is going to end in tears.
You can see it.
Like Philip Patrick says, he says, this is the most recognizable crisis that's ever come to the United States.
It's predicted, forecast.
You can see the math.
The math is at such large scale that it's going to be very tough to change.
We've got to bounce.
I know you do, too.
Thank you for taking time here on a Saturday morning.
Philip, where do people go to get you if they want to talk to you directly?
phillip patrick
Very simple.
So birchgold.com forward slash Bannon.
That'll get information on precious metals, how to invest, and you can reach me directly at Philip Patrick on Getter.
steve bannon
Philip, just absolutely incredible.
Thank you, and thank you for all the support.
I hear all the time from folks that just love the guidance and counsel you guys are giving them, so thank you very much.
Love to have you guys as a sponsor.
phillip patrick
Thank you.
steve bannon
Okay, I'll be up on Getter all weekend.
There's so much going on, just on Getter.
I'll be putting up, maybe Grace and Mo, maybe we can come in for a live chat.
You never know!
We're gonna be streaming a lot of stuff this weekend, just stick around and watch.
War Room.
We'll be back live 10 a.m.
unidentified
on Monday morning.
steve bannon
Next week we'll be absolutely on fire.
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