Aug. 19, 2024 - Bannon's War Room
48:49
Participants
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| Speaker | Time | Text |
|---|---|---|
| This is the primal scream of a dying regime. | ||
|
unidentified
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Pray for our enemies. | |
| Because we're going medieval on these people. | ||
| I got a free shot on all these networks lying about the people. | ||
|
unidentified
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The people have had a belly full of it. | |
| I know you don't like hearing that. | ||
| I know you've tried to do everything in the world to stop that, but you're not going to stop it. | ||
|
unidentified
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It's going to happen. | |
| And where do people like that go to share the big lie? | ||
|
unidentified
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MAGA Media. | |
| I wish in my soul, I wish that any of these people had a conscience. | ||
|
unidentified
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Ask yourself, what is my task and what is my purpose? | |
| If that answer is to save my country, this country will be saved. | ||
|
unidentified
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War Room. Here's your host, Stephen K. Bannon. | |
| Hey, Peter K. Navarro in for Stephen K. Bannon. | ||
| You are in Steve Bannon's War Room, and we are with the great Kevin Hassett, who was the chair of the Council of Economic Advisers for Donald John Trump during that beautiful first term in which we had zero inflation, almost, and rising real wages. | ||
| And prosperity. | ||
| Kevin, hey, it's great to see my brother. | ||
|
unidentified
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Good to see you too, Peter. | |
| So let's get right into it. | ||
| We've got a sprint now to Election Day. | ||
| What's your what's your view on the state of the economy? | ||
| What's your view on what the Federal Reserve chair Jerome Powell is going to say at Jackson Hole, and where are we going with interest rates? | ||
| What do you see happening now and then and beyond, my brother? | ||
|
unidentified
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Well, you know, as you know, Peter, something you've been talking about since you were in grad school at Harvard, that if the government prints money and mails it around to people, which is what Bidenomics really was, then you create inflation. | |
| And when you create inflation, then the first thing that happens is the price, everything goes up and then gradually wages adjust, but they don't really keep up. | ||
| And so real wages go down and that means real incomes are down and people are upset. | ||
| Now that's been the state of the economy for the last couple of years. | ||
| Real wages are down under Biden by about two thousand dollars a family. | ||
| But that doesn't actually even capture the effect of higher interest payments. | ||
| So interest rates go up with inflation and I estimated doing some math last week that the typical family that's carrying over debt on their credit cards is paying about $1,600 a year in extra interest payment because of the higher interest payment. | ||
| So if you want, you can say you're about $4,000. | ||
| Worse off under Biden than you were when he started. | ||
| And so that's the fundamental weakness that's hitting the economy. | ||
| Inflation hasn't gone back down to target. | ||
| And the sort of output numbers still seem to be doing okay. | ||
| They're running ahead of the income numbers. | ||
| And so the Fed might think that it's going to have to start to cut rates because it's getting inflation close to the target. | ||
| But I wouldn't do it if I were at the Fed right now because inflation is still too high. | ||
| And inflation, you know, attacks real incomes, as you know. | ||
| And if they do it, what does that suggest about the politics of the Federal Reserve? | ||
| You know, we got this discussion now about the Fed independence, that the Fed should be left independent. | ||
| Do you think the Fed right now is independent? | ||
| And what are they likely to do for the right or wrong reasons in September in terms of raising rates? | ||
|
unidentified
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You know, Peter, you and I have been speaking to President Trump about this all the way back to 2017. | |
| And the thing that really stuck in his craw at the beginning was that the Fed started hiking interest rates right after he was elected, before he was inaugurated in the December before, even though inflation was at 1.8%. | ||
| And so inflation was below their target. | ||
| But in order to try to slow the Trump train down, I guess they started hiking rates without a lot of evidence that they should. | ||
| And then, you know, at the beginning of this year, the economy was kind of strong and inflation was still pretty high. | ||
| And financial markets expected the Fed to cut rates, I think, six times it was in January. | ||
| And so that looks to me like a very, very partisan expectation. | ||
| Now, the good news is the data Didn't allow the Fed. | ||
| Inflation stayed high. | ||
| That's bad news. | ||
| But the good news is that the Fed has been kind of data responsive, and the unemployment data have been pretty weak. | ||
| You follow that closely, too. | ||
| And so I think that there's an argument that the Fed should cut in September. | ||
| And so usually when I'm like saying, well, this has to be politics, it's because I can't think of a sound economic reason for what they're doing. | ||
| But I think you can see that with the weak labor market that it might be OK for the Fed to start to cut, even though it's right before the election. | ||
| So, historically, what we've seen during the Trump years, they raised rates too fast. | ||
| During the Biden years, they raised rates, they cut rates too, what would they, yeah. | ||
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unidentified
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They raised rates too slow. | |
| They raised rates too slow, right. | ||
|
unidentified
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Yeah. | |
| Okay. | ||
| So, going back to the Trump years, Jerome Powell takes over from Janet Yellen, the Democrat. | ||
| When he started raising rates And we kept telling, speaking out, I don't know if you could speak to him directly, but we were saying, hey, wait a minute. | ||
| In the Trump economy, there's no inflation here. | ||
| Why are you raising rates? | ||
| Do you think what he did back then was designed to hurt Trump politically or simply incompetence? | ||
|
unidentified
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I think that for Jay Powell it was incompetence, and for Janet Yellen, who really started the hiking cycle right when Trump took office, that it was partisan politics. | |
| And we've seen that, Peter, even lately. | ||
| I don't know if you've noticed, but Secretary Yellen has been doing political events, campaign events with Vice President Harris. | ||
| I can't remember a Treasury Secretary out there actually on the stump. | ||
| stumping with the politician, that's sort of not something that is in the job description for a | ||
| Treasury Secretary. And so I think that we've seen that she is a kind of more partisan animal than we | ||
| expected. And if you consider the moves that were made to try to squash the economy when Trump took | ||
| office, that it all kind of starts to make a little bit more sense than it did back then. | ||
| So Powell is the chair when Biden takes over his reappointment is looming and he's worried about | ||
| whether or not he's going to get reappointed. | ||
| Do you think that factored into his decision not to raise rates quickly enough when inflation started percolating or again? | ||
| He's not an economist, unbelievably. | ||
|
unidentified
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What's your take of the guy? | |
| As you know, Peter, I used to come back and talk to you about the lunches I had with him when I was chair of the Council of Economic Advisers and he was chair of the Fed. | ||
| I don't think that he's a corrupt or partisan person. | ||
| I think that The Fed staff is filled with a whole bunch of sort of like you, Harvard trained economists who believe in Keynesian economics and Phillips curves and things like that. | ||
| And they were surprised by inflation because it didn't make sense to them, even though it should make sense to anyone who's not an ideological economist. | ||
| So my view is that the Fed staff is a very one sided kind of, you know, Cambridge, Massachusetts trained Keynesians. | ||
| And they don't understand that if you have a supply-side policy, then that increases supply, so that puts downward pressure on inflation. | ||
| And if you have a big demand-side policy, like printing money and mailing it to people and forgiving student debt and maybe subsidizing new homes as a new proposal from Vice President Harris, well, then that's going to be inflationary. | ||
| So I think that in the end, the Powell legacy is going to be that he ended up moving late because the staff didn't serve him well. | ||
| But once he started to move, he actually moved pretty aggressively. | ||
| It was one of the more aggressive hike cycles that we've seen. | ||
| And inflation has gone down. | ||
| And so I think that he got in there in earnest to address the inflation situation in the end. | ||
| And I commend him for that. | ||
| So this is interesting. | ||
| So these advisors who are advising him, they're Keynesian. | ||
| Does that mean they lean Democrat or are they just Keynesian? | ||
| Because the other aspect of this is like if they don't understand the benefits of supply side policies with Trump and they start to hike too quickly, is it also the case they don't understand that the initial Pulse of inflation when Biden took office was some of his mismanagements of the supply chains themselves. | ||
| Did they not, they just don't, don't get any of that? | ||
| Or again, I mean, I, I thought that all he was doing, all Powell was doing was, was holding back on rate hikes so he'd get reappointed. | ||
| I mean, that was kind of my take, but maybe that's too simple. | ||
|
unidentified
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Well, I think that what everybody thought at the time, you know, in their defense was that because of COVID there were supply disruptions and the supply disruptions were going to open up and then everything was going to be fine again. | |
| And so you can imagine if like we're getting our apples from Canada and there's one bridge from Canada and the bridge is closed, call that a supply disruption, then the price of apples on our side is going to go way up. | ||
| But if you could open the bridge again, Yeah. | ||
| And so I think that that's kind of what people thought was going to happen, that it was a big supply disruption and it was going to turn off. | ||
| But the problem is that while watching that supply disruption ball, what they weren't watching was the government spending ball. | ||
| And again, there was all that COVID relief money that was passed on a bipartisan basis to offset the terrible shutdowns that Fauci Tricked us into doing. | ||
| And then that created budget space for the Democrats to spend all that money again, even though the COVID thing was over. | ||
| And so there's a massive, massive explosion in demand and in government spending. | ||
| And that's where the inflation came from. | ||
| And the supply disruption thing was a story that just wasn't as serious as people thought. | ||
| I think that it was really kind of like every economic model, even Keynesian models, would tell you you're going to get inflation if you spend like that. | ||
| And so I would say it was kind of like partisan denial more than anything else. | ||
| So, look, the problem with the Fed is that it's a one trick pony, basically. | ||
| It either raises rates to control inflation or cuts rates to Push growth out of a recession, right? | ||
| So if put you I didn't I don't know the hypothetical here is that let's say you're the chair of the Fed and you're seeing Two massive spending bills going through Congress Would you do you think the Fed chair has a responsibility? | ||
| To Tell the executive and legislative branches that, hey, you're going to make my job a whole lot harder if you throw all this gasoline on the inflationary fire. | ||
| Or does the Fed stay passive and then just take what they get in and raise rates? | ||
| I mean, there was the famous Fed chair, when Lyndon Johnson started all the Vietnam War expenditures, who was very activist about, hey, don't do that. | ||
| What's your view on what a proper Fed chair should do? | ||
|
unidentified
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Right. | |
| You're a real student of history, Peter, and you'll remember that Alan Greenspan used to testify at the Humphrey Hawkins speeches twice a year up at Congress, and he always led off with, you guys need to not spend too much, have a budget that's mostly balanced, because if you do that, then it'll make it a lot easier for me to control inflation. | ||
| And so I think that a missed opportunity for this Fed chair is when all of this runaway spending started to happen that, you know, he could have gone up to Congress and said, you know, if you do this, I'm going to have to lift the federal funds rate to 56% in order to get inflation back under control because you're just going to print. | ||
| Inflation. | ||
| And so you can remember, there's like different curves that shift in different directions. | ||
| We could go to a blackboard, but if the government shifted, you know, demand curve out, then you can shift the supply curve back with Fed policy and end up in a place without inflation. | ||
| But it's going to cost the economy quite a bit of growth. | ||
| And so I think that was a missed opportunity. | ||
| I think that the next Fed chair, whoever that might be, should. | ||
| You know, basically just be truthful about, look, my job is to control inflation. | ||
| If you do this, here's how I'm going to respond. | ||
| And talk about the limits of interest rate policy when fiscal policy, if fiscal policy is out of control, monetary policy, it's going to be very difficult. | ||
| For that to kick in. | ||
| All right. | ||
| So we're going to take a quick break here, Kevin. | ||
| When we come back, I want to dive into the Kamala Harris economic speech and get your thoughts on where she might take America. | ||
| All right. | ||
| Hey, Peter K. Navarro in with Kevin Hassett here in Steve Bannon's War Room. | ||
| We'll be right back. | ||
| Stay right here. | ||
|
unidentified
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And what that means? | |
| It's a symbol of the pride that comes with hard work. | ||
| It's financial security. | ||
| Let's take down the CCD. | ||
| And what that means? | ||
| It's a symbol of the pride that comes with hard work. | ||
| It's financial security. | ||
| It represents what you will be able to do for your children. | ||
| And sadly right now, it is out of reach for far too many American families. | ||
| There's a serious housing shortage. | ||
| In many places, it's too difficult to build, and it's driving prices up. | ||
| My administration will provide first-time home buyers with $25,000 to help with the down payment on a new home. | ||
| A price-controlled chicken in every pot, a pony in a garage for every child in a home. | ||
| Pretty interesting. | ||
| All right, Kevin Hassett, you heard Kamala lead with economics in her first major policy address. | ||
| Did you, did your eyebrows kind of go up when you heard price gauging, or did that kind of, did you just kind of like, hmm? | ||
|
unidentified
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Yeah, gauging as opposed to gouging, right? | |
| Yeah, I mean, I made a big deal of it, like, at the beginning of the show, because I don't think it was an accident in her head. | ||
| Okay, so what do we got here with Kamala Harris's economic vision of the future? | ||
|
unidentified
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Let's go on and as you always do, Peter, let's just start with the substance. | |
| The substance is that when she was a candidate before, she was pretty much running as a sort of slightly different version of Bernie Sanders, had a lot of very far left proposals. | ||
| Like a guaranteed job for everybody and, you know, ending going carbon neutral, I think it was by 2030. | ||
| You know, things that were extremely harmful for the economy, ending fracking. | ||
| And Over the last couple of weeks, she's been kind of backing away from that stuff. | ||
| She hired some pretty moderate campaign advisors like Brian Deese and Gene Sperling, people who had worked in the Obama administration and the Clinton administration in the past, kind of, you know, old hands. | ||
| And so I think that there was this attempt to signal that she's not really going to be pursuing the really divisive far-left policies that she proposed when she was a candidate before. | ||
| But then all of a sudden she puts out her platform, and it's the most left-wing platform | ||
| that any of us have ever seen. The highlight of it, or lowlight of it, of course, is that there's | ||
| this price setting for groceries. And really, the bill in Congress that it's modeled after, | ||
| it basically sets it up so that the government can set the price of everything. | ||
| So if the government decides that a company's charging too much money for something, then they can hit it with an exorbitant fine. | ||
| And so what would happen over time is that the government would decide what's a fair price, what's not a fair price, and if you charge more than that, especially if you're a Republican donor or something, then they're going to hit you with a big fine and say, you know, that price is wrong. | ||
| before you know it, they're going to, government's going to be setting prices with her proposal. | ||
| And when that happens, you know, the price will be set below the market clearing price. There'll | ||
| be more demand than supply. And so there'll be long lines, you know, coupons. So the, | ||
| you'll have to have from the government so you can buy things. And before you know it, | ||
| a lot of shops will close. And the shops that will close first will be the shops | ||
| in minority neighborhoods, sadly, because they tend to be the least profitable. And so | ||
| It's really, really terrible policy. | ||
| And the thing... | ||
| I know some folks who are friends of mine who are Democrats, and they're kind of like, oh, she's just doing that to get the base excited, and she's not really going to do it. | ||
| But if you look at her stump speeches, She spends quite a bit of time bragging about the prices that they already have set, the drug prices, where they had the government negotiate much lower prices on some drugs. | ||
| Our friends Casey Mulligan and Tom Phillips wrote an article about how that actually paradoxically has cost people their drug benefit in a lot of ways. | ||
| But the fact is that she celebrates price setting, having the government price set in the area where she's done it already, which means that she's serious about doing it in the future. | ||
| And that really is the road to Venezuela. | ||
| You know, it's just a disastrous economic policy. | ||
| And the kind of good thing is that even with the liberal media being biased at everything, the New York Times, the Washington Post, just about everybody who's normally a knee-jerk supporter of whatever a Democrat might say has come out and trashed this plan. | ||
| I mean, that's how bad it is. | ||
| Do you know who the sponsor is of that bill on the Hill? | ||
|
unidentified
|
Elizabeth Warren. | |
| Elizabeth Warren. | ||
| Oh, OK. | ||
| So she's channeling Pocahontas there in terms of the Bernie Sanders, Liz Warren, progressive kind of thing. | ||
| I would be remiss in not pointing out that this guy named Gene Sperling. | ||
| I don't know if you know this, Kevin, but when I was on the campaign trail with the boss in 2016, I actually debated Gene Sperling prior to the debate night when the boss was debating his opponent. | ||
| They had me do Sperling in the afternoon. | ||
| And what's interesting about Sperling Is I think you know this. | ||
| He was the guy that led China into the WTO back in the day. | ||
|
unidentified
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He was there during that. | |
| Yeah. | ||
| He and he and he he was they sent him over to negotiate all that stuff and things like that. | ||
| So he was like so let's think about this. | ||
| So the guy who allowed China into the World Trade Organization is now advising Kamala Harris. | ||
| Denver, can you quick play that housing affordability clip, like the 18-second one for Kevin, if you can? | ||
| Go ahead and do that if you can cue that. | ||
| My administration will provide first-time home buyers with $25,000 to help with the down payment on a new home. | ||
| See, everybody jumped on the price control one, because that's kind of the Econ 101 first lesson. | ||
| What was your thoughts when you saw that part? | ||
| It's like a $25,000 grant for first-time homebuyers. | ||
| That's another big bill on Congress. | ||
| Will that work in any way? | ||
| What's going on there? | ||
|
unidentified
|
So it goes back to our earlier conversation, Peter, that these people really just don't understand supply and demand, right? | |
| And so the problem with housing in America is that demand has gone up a lot, in part because millions and millions of people have come across the border and they need a place to stay. | ||
| And so we've had this big increase in demand for places to stay. | ||
| And the supply can't really adjust because in part because mortgage interest rates are so high, it's really hard to borrow money to do anything like that. | ||
| And so there's been little supply, lots of demand. | ||
| And so then the price goes way up. | ||
| And so what Harris is proposing is to give a $25,000 down payment assistance to a first-time homebuyer. | ||
| And what that's going to do is that when you're bidding to buy a house, then you're going to have an extra $25,000. | ||
| The guy that you're bidding against is going to have an extra $25,000. | ||
| And inevitably, that's going to cause housing inflation. | ||
| The price of the house will go up by $25,000. | ||
| And you know there could be some supply response. But really the way to get that is what President Trump's | ||
| proposing which is to open up public lands around cities and have like really | ||
| easy zoning for the construction of new homes. You need to flood the country | ||
| with supply of housing not increased demand. And so it's just really very very similar to the by economics that gave | ||
| us right away inflation throw demand at things and not think not think | ||
| about supply. The final thing is that when I don't know where they got | ||
| the number but they have this estimate that it'll be about it'll create about three million homes. | ||
| Uh... | ||
| You know, I don't know. | ||
| Peter, you know this data better than I do, but the last I checked, the estimate of the number of illegals that have come into the country is more than five million. | ||
| And so if you think about it, that all new homes with this really extravagant policy they're proposing under their estimate that are being built aren't enough to house the people they let across the border over the last four years. | ||
| So to summarize, what you're saying here is that Because of the way the housing market's constructed right now, and the role that the illegal immigration's playing, that all you'll see is, you'll give people $25,000 extra, and they'll have to go buy a house which costs $25,000 extra. | ||
| So it's like, right, and by the way, they'll thereby have to finance A house that's higher and they'll have a higher mortgage. | ||
|
unidentified
|
Higher mortgage payment. | |
| But it is a transfer. | ||
| Peter, you own a house. | ||
| And so if you were to sell the house the day after this policy passes, then Kamala Harris would have given you a check for $25,000 effectively. | ||
| So it's a transfer to people who own existing homes. | ||
| Yeah. | ||
| And then the problem, of course, is that if I've got to move to another house, I've got to pay $25,000 more than I otherwise would. | ||
|
unidentified
|
Sure. | |
| I mean, that's the other part of it, right? | ||
| It's like when this high interest rate environment, you've got people in existing homes who might want to otherwise sell to move up. | ||
| For a bigger family or move down because they got empty nesters. | ||
| They're not doing that. | ||
| And that's part of the housing constraints. | ||
| Hey, can you stick around for just a little bit more? | ||
| Is that cool? | ||
| Or you got to go? | ||
| Of course. | ||
| All right. | ||
| So what we're going to do. | ||
| Come back. | ||
| I want to talk a little bit about because what we like to do is contrast Kamala's America with Trump's America. | ||
| I want to talk a little bit about what Donald Trump's Going to do on the economy to turn all of Kamala's mess around. | ||
| Peter K. Navarro here in the War Room with the great Kevin Hassett sitting in for Stephen K. Bannon. | ||
| So stay right here if you care about your pocketbook. | ||
| We'll be right back. | ||
|
unidentified
|
Here's your host, Stephen K. Bound. | |
| Welcome back to the show. | ||
| I'm your host, Stephen K. Bound. | ||
| Hey, Peter Knavar in for Stephen K Bannon. | ||
| You are here in the War Room. | ||
| We are with the great Kevin Hassett, my former colleague in the White House, in the West Wing, the former chairman of the Council of Economic Advisers. | ||
| And we were talking off air about something that I was totally unaware of, but I think it's worth Kevin waxing a little eloquent on. | ||
| This whole thing about where Kamala's policies are coming from and Elizabeth Warren pops to mind according to Kevin. | ||
| So talk a little bit about where she's getting her ideas from and who's controlling this party and how that's rippling through the Democrats who may or may not go to the convention. | ||
|
unidentified
|
Right. | |
| Yeah, if you think about it, Peter, that if we go back and look at President Biden's campaign in the past, that he ran as, you know, compared to the people that he was running against, as a moderate, as a continuation of President Obama's policies, which compared to the proposals of Elizabeth Warren and Bernie Sanders were moderate. | ||
| And then, but he was losing. | ||
| And then what happened was that right up at the end, in the South Carolina primary, all the people who were not way, way left dropped out all at once, as if the fix was in, and then Biden ended up getting the nominations. | ||
| And then with that nomination, he ended up winning the White House. | ||
| And what did he do? | ||
| He went in and he let Elizabeth Warren and Bernie Sanders basically run the country. | ||
| If you look at the people who he placed in agencies, this is inside baseball stuff, but hey, I live in Washington. | ||
| I do inside baseball stuff. | ||
| They're all people who were like Elizabeth Warren staffers and Bernie Sanders staffers and so on. | ||
| And now what's going on, the really interesting thing is that Vice President Harris doesn't feel like she needs to fake it anymore. | ||
| Fake being a moderate. | ||
| She's proposing the Elizabeth Warren's price fixing thing, for example. | ||
| And it's a signal that really they've decided that they're going to let the left wing of their party run everything and they're going to be explicit about it. | ||
| And to some sense, we should commend that. | ||
| It's much more honest, right, than what Biden did. | ||
| But it is something that the moderates in the Democratic Party, I think, grew. | ||
| And one of the things that I'm going to be keeping track of is how many of the, say, | ||
| Senate candidates, Democratic Senate candidates who are in traditionally red states or purple states, | ||
| even bothered going to the convention, because the convention is going to be a very, very | ||
| far-left celebration of the victory of the far left over the Democratic Party. | ||
| But the Democratic Party's power is going to depend a lot on convincing, you know, Moderate people in swing states, they're not crazy. | ||
| But if you're out there bragging about how awesome it's going to be when the government sets the price of everything, then you're probably going to have a problem getting moderate senators elected in swing states. | ||
| So I think the War Room could serve a useful function, keeping track of who's not speaking. | ||
| I've got an assignment here. | ||
| I like the sound of this. | ||
| Who's not speaking? | ||
| Tester. | ||
| What do you bet he won't be there? | ||
|
unidentified
|
Yeah, exactly. | |
| This is fascinating. | ||
| I mean I think in some sense the best thing that's happened To the Trump campaign with Kamala Harris is this initial huge surge in in her poll numbers to create this I think she somehow thinks that that | ||
| Her rise in popularity is attributable to her rather than simply not Joe Biden. | ||
| I mean, I think I think pretty much anybody could have stepped in when Biden dropped out. | ||
| I mean, literally anybody and would have seen the same kind of bounce back. | ||
|
unidentified
|
The thing, Peter, the thing about this, though, is that that even Joe Biden in his diminished capacity You know, he's smart enough to understand that you don't tell the government to set the price of food. | |
| Right? | ||
| Right, right, right. | ||
|
unidentified
|
I mean, Joe Biden would still have gotten up and let me know that he shouldn't be doing that. | |
| My point is that it's hubris. | ||
| Like, she thinks somehow that the people love her, and somehow that empowers her then to go on and do kind of whatever She wants to do, ergo. | ||
| I mean, to me, the two major strategic mistakes so far, and they're big, is appointing somebody who's equally far left from the California, the Midwest, Minnesota, to be her running mate. | ||
| And number two, leading with economics, which she has a glass chin on, and coming out with, I don't know, Venezuelan proposals. | ||
| But if you're telling me that she's effectively a Liz Warren puppet, just like Joe Biden was, that all makes sense. | ||
| That's why I have you on The War Room, Kevin, because you make sense out of what seemingly It's inexplicable. | ||
| Let's end the segment here with what do you think Donald Trump can do to reverse all of this angst and problems in the economy? | ||
| What do you see him doing day one, day two, through the first hundred days to make all this right, brother? | ||
|
unidentified
|
You know, I think that when we went in, and I can remember, Peter, you and I started out disagreeing about a lot of stuff. | |
| I think we really moved each other's opinions about a whole bunch of things over time, and I really enjoyed working with you. | ||
| And we ended up with a policy that was, of course, led by President Trump. | ||
| that created prosperity. | ||
| You know, about $6,500 per family in income growth when President Trump left office, inflation was at 1.8%. | ||
| And we gave him the 3% growth that he promised. | ||
| And everybody said it was impossible. | ||
| Remember, we were told it's the new normal and you'd have to be crazy to think you could have growth | ||
| at 3%. | ||
| But it happened relatively quickly. | ||
| And I think that if you bring back the policies, especially like the deregulation, the trade policy, the tax policy that gave us that prosperity, then we'll get the prosperity again. | ||
| The hard part, of course, is going to be that this Biden spending has racked up an enormous deficit. | ||
| Can you do that? | ||
| Kevin, can you thread that needle? | ||
| And the hard part is going to be, you know, getting ahead of the curve on that, which | ||
| is going to require Congress to work with the president to cut spending a lot. | ||
| And that's something Congress doesn't like to do. | ||
| I mean, can you do that? | ||
| Kevin, can you thread that needle? | ||
| Can you put the flaps down now without slowing things down significantly? | ||
|
unidentified
|
Yeah, you can. | |
| Here's how it works, Peter. | ||
| If you look at the deficit situation of the U.S., it's like nobody in his right mind would say, oh, if they continue their current policies, it's going to be fine, right? | ||
| You can't conclude that if you look at how much we're borrowing. | ||
| In fact, the last two years, Peter, we increased the debt by more than the increase in GDP. | ||
| And so the way to think about that is imagine you're running a business, you borrow $100,000, you give your wife a job for $70,000, you blow $30,000 in Vegas. | ||
| At the end of the year, somebody said, how'd you guys do? | ||
| And you say, oh, it was great. | ||
| Our family income went up $70,000. | ||
| And you're forgetting that you owe the $100,000. | ||
| This is what Bitomics has done. | ||
| And so we've got this big debt that we've run up. | ||
| And we've got to get ahead of the curve on it. | ||
| And if we don't, then basically we won't have money to do things like defend the country that we need to do. | ||
| But because we've done that and we've run up this big debt, then foreign investors around the world will be looking at the U.S. | ||
| saying, geez, I don't necessarily want to put my money in that country because their fiscal policy is so crazy. | ||
| If you come in and you cut spending a lot, you could actually create this euphoria that, wow, the Americans got their act together. | ||
| Your old friend Alberto Alessina at Harvard wrote a bunch of papers that showed that if you come in and you cut spending a lot when you're in a situation this bad, then you could actually make GDP go up a lot because everybody's like, oh, now I understand I'm not buying into a banana republic. | ||
| I'm buying into a country that has its act together. | ||
| So that's like investment, that's investment-led growth then? | ||
|
unidentified
|
Yeah, that's right. | |
| Capital come in and it reduces employment. | ||
| Yeah. | ||
| It's I mean, it is, though, problematic. | ||
| I wanted to get your take on that portion of the spending that's going into the electric vehicle mandate and how that is creating a strong incentive for. | ||
| our auto industry to go offshore to Shanghai? | ||
| Because, I mean, look, Michigan is in play here. | ||
| The UAW workers got a big paycheck, but I think it's gonna be the last paycheck | ||
| of a three-year negotiating cycle because that industry is going offshore. | ||
| Am I wrong about that? | ||
| How do you change that? | ||
|
unidentified
|
You're right. | |
| So basically, if you're an auto worker and you make a traditional internal combustion engine car, | ||
| then the plan of these carbon neutral folks, like Vice President Harris, is to destroy your job. | ||
| And what's going on is that the traditional car manufacturing jobs are disappearing in places like Michigan, and electric vehicle production is happening, or at least assembly Is happening in places like Tennessee. | ||
| But when Ford or GM moves their production from Michigan to Tennessee there's a big difference for the unions and that the union hasn't organized the places where the electrics are being made. | ||
| And so the electric vehicle push of the Biden-Harris administration is effectively, you know, going to put the United Auto Workers out of business because they're either going to be importing cars, these electric cars, or assembling them in the South where the union hasn't organized the workers. | ||
| And so it'd just be stunning to me if there were somebody whose life depends on the auto industry in Michigan, that it'd be stunning to me if they were to continue to support these democratic policies. | ||
| All right, so everyone out there in in media land, you heard, I think, that first in the worm. | ||
| I learned something there. | ||
| It's like this is this is so interesting, Kevin. | ||
| What you're saying is that not only is the Biden Kamala Harris spending bill pushing Offshore the auto industry, but it's moving it from Michigan to places like Tennessee and basically Michigan's going to be kind of a hollowed out version of | ||
| What it was back in the 2000s when China first got into the WTO. | ||
| That is, that's fascinating, my brother. | ||
| I mean, Tennessee wins, Michigan loses, the UAW goes out of business. | ||
| Stick that in your hat. | ||
| Am I got that right, brother? | ||
| That's amazing. | ||
|
unidentified
|
And the follow-on effects of these really, really stark policies are really, really stunning. | |
| So imagine all the incredibly hardworking families, many of them immigrants, that run gas stations. | ||
| Yeah. | ||
| There you go. | ||
|
unidentified
|
We're not going to have any gas stations. | |
| So you want a gas station. | ||
| You spent your life building a store, a convenience store gas station. | ||
| You know, in their plan, 2030, there's no reason for you to be in business anymore. | ||
| The disruption of all that is huge. | ||
| Yeah, I mean, all EVs are like a little bit of metal on top of a big battery, which is why if China controls the battery industry globally like they do, We're screwed. | ||
| Hey, Kevin, I always wish you the best, brother. | ||
| The boss is going to need you if he gets back in there again. | ||
| So rest now, because you're going to be a busy, busy man. | ||
| I appreciated your support just before I went into prison there defending the Constitution, and you were a rock there while I was there, and I do appreciate that, my friend. | ||
| I'm glad you're doing well. | ||
| Your family's doing well. | ||
| Alright, man, we'll see you next time, brother. | ||
| That's Kevin Hassett, my main man. | ||
| Peter K. Navarro in Bannon's War Room. | ||
| We'll be back for the grand finale, but boy, you got your money's worth already today. | ||
|
unidentified
|
We rejoice when there's no more. | |
| Let's take down the CC. | ||
| Here's your host, Stephen K. Bannon. | ||
| Hey, Peter K. Navarro in for Stephen K. Bannon. | ||
| We had the great Jim Rickards in last Friday, talk all things strategic, geopolitical stuff. | ||
| Have you seen his war room appearances? | ||
| Jim has a knack for making the complex simple. | ||
| And every month, he's got this thing, Strategic Intelligence, that cuts through the noise, | ||
| delivers actionable financial guidance. | ||
| War Room members get a free copy of Jim's The New Case for Gold. | ||
| It's an amazing follow-up to Ron Paul's classic. | ||
| And what makes his book even more crucial is that he's not a gold bug. | ||
| He'll help you understand gold's significance on the global stage as well as in your own portfolio. | ||
| Go sign up now, claim your free book at our exclusive website, RickertsWarRoom.com. | ||
| That's RickertsWarRoom.com. | ||
| Let's go right now to Done With Debt. | ||
| Tell us about this, Jillian. | ||
| Tell us about how we can be done with debt. | ||
| I like the old die broke thing, but done with debt might be a good thing too. | ||
| Tell me about it. | ||
|
unidentified
|
Died, lied, and fried. | |
| I know. | ||
| I've been there and I've done that. | ||
| Peter, thanks for having me on. | ||
| Right now, one in three Americans are completely maxed out on their credit cards, mortgages. | ||
| You guys were talking about what's that 25 grand gonna do, right? | ||
| to do right. | ||
| Kamala's from, oh please. | ||
| So whether it's health, I have cancer, whether it's trusting the wrong people with your money, | ||
| a lot of people in my business do that. | ||
| Thank God I'm not in L.A. | ||
| and Hollywood anymore. | ||
| The further west I move, right now I'm in Ventura County. | ||
| That's why it's so sunny and peaceful. | ||
| You know, people get into trouble financially for a variety of reasons, Peter, and it just builds up. | ||
| So done with that, what are they going to do? | ||
| First of all, don't be afraid. | ||
| A lot of it is shame. | ||
| And the other thing that the people on the credit side and the government have working for them is time. | ||
| That's what you don't have. | ||
| So every time a letter comes or a phone call that you don't pick up and you've got anxiety and nerves and you're freaking out and your family's having dinner and those phones are ringing, they've got time. | ||
| It's a roster. | ||
| Your name's going to keep coming up. | ||
| So don't ignore it because it's just going to get worse. | ||
| And those fees are going up. | ||
| Because they're tallying you. | ||
| So what's going to happen is you're going to end up in worse debt. | ||
| Done with debt. | ||
| What they're going to do, they're going to pick up the phone, they're going to talk to you, they're going to get you on a plan, they're going to stop those nasty calls, they're going to stop all those letters, and they're going to put you on a plan. | ||
| What they do right away is they talk to the insurance, or they talk to all the companies out there, the banking institutions, they talk to the credit card companies, and they put you on a plan. | ||
| Some of those places will wipe out your debt completely. | ||
| I didn't know that. | ||
| I didn't know that as a public person, as a private citizen. | ||
| I didn't know! | ||
| And sometimes it's pennies on the dollar they'll settle for, otherwise it's sort of like pound sand. | ||
| This is what you're going to get because you can't get blood from a stone. | ||
| And so the bottom line is they work with you to get you out of this hole. | ||
| A lot of people are in shame about it, right? | ||
| So I came out publicly because, hey, I'm human. | ||
| We all have stuff. | ||
| We all make mistakes. | ||
| And again, mine was cancer. | ||
| Bill's, you know, I had two kids I was responsible for, single mom, no help financially from the dad. | ||
| And it's just like, I was in, I was just in a living hell. | ||
| And Peter, I can tell you, there are people out there that will help you. | ||
| You don't feel it at the time. | ||
| But if you're sitting there feeling that shame right now, please don't. | ||
| I'm done with that. | ||
| All right. | ||
| So, so, so tell us where where you want people to go to get this help. | ||
|
unidentified
|
Thanks, Peter. | |
| Go to Done With That. | ||
| 30 seconds here. | ||
|
unidentified
|
Yeah, they'll, they will help you. | |
| Donewithdebt.com. | ||
| And once you go there, look at the website, see what they've got. | ||
| They've got the phone number on there. | ||
| There's going to be a helping hand on the other line. | ||
| There is absolutely no judgment because we've all been there. | ||
| And they're going to help you get out of the situation that you're in. | ||
| Once more on the website. | ||
|
unidentified
|
Donewithdebt.com. | |
| Thank you, Peter. | ||
| Donewithdebt.com. | ||
| Donewithdebt.com. | ||
| Check it out. | ||
| Donewithdebt.com. | ||
| We'll see you next time and soon. | ||
| We're going to kick right over now to the great Mike Lindell. | ||
| He's taking a vacation this week. | ||
| An all expenses paid vacation by the Kamala Harris campaign. | ||
| Sir, where are you? | ||
| I am in Chicago. | ||
| We're going to be live streaming here with our event, my annual event, from frankspeech.com, everybody. | ||
| And by the way, you should go there, frankspeech.com. | ||
| Get signed up. | ||
| I'm going to actually, Peter, be shaving my mustache and going in incognito into the DNC. | ||
|
unidentified
|
So it's going to be huge, everybody. | |
| I'm here with Rudy Giuliani and others for Frank's Beach. | ||
| We're going to be live streaming every day from noon to 9 o'clock at night. | ||
| And you guys check it out. | ||
| Get over there after the show here. | ||
| Get on the email list because we're going to send out an email when I head into the DNC without a mustache. | ||
| And you guys make it all possible. | ||
| I want to quick get the specials in. | ||
| We, at MyPillow, right now we have, we're going to, this is the last day. | ||
| We're extending it a day for the Giza Dream Sheets. | ||
| This is a War Room exclusive. | ||
| And he was so popular, you guys said, please can we have one more day? | ||
| You guys can. | ||
| $59.98 for the queen, $69.98 for the king. | ||
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| They are awesome. | ||
| 10-year warranty, 60-day money-back guarantee. | ||
| If you order today, you're gonna get the exclusive with God, all things are possible, free with any of your orders. | ||
| That's another War Room exclusive. | ||
| We've got the mattress topper with the free per-kill sheets. | ||
| And we've got the 80% off closeout and overstock sale. | ||
| These sheets, I mean these blankets that came from Portugal, get those before they're gone. | ||
| We have a couple hundred left. | ||
| This is a War Room exclusive. | ||
| They're the most amazing, awesome blankets. | ||
| They're up to 80% off. | ||
| And then we got the beach towels, the kitchen towels, and the dish towels all on sale. | ||
| $25 extravaganza. | ||
| This is gonna be a great week. | ||
| There's some of the white sandals left. | ||
|
unidentified
|
$9.50. | |
| Come on. | ||
| We gotta get those out there for you guys. | ||
| It's a War Room exclusive. | ||
| Call 800-873-1062. | ||
| My operators around the country, these are moms and dads that work from home. | ||
| Remember the IRS tried to shut them down and they can still work from home on commission. | ||
| So this is a win-win-win. | ||
| This is my employee-owned company that's always attacked. | ||
| It's helping them. | ||
| You're helping the war room as us sponsoring them. | ||
| And you're helping yourself get the best products in history. | ||
| And it's... Peter, you can't... Warburn's been so supportive, and I told Steve we would break records while he's in there. | ||
| Let's call it the Political Prisoner Special, everybody. | ||
| It's... we're looking forward to it. | ||
| Listen, you stay safe. | ||
| Instead of shaving your mustache, I recommend just wearing one of those river-to-the-sea Palestinian protester masks. | ||
| They'll treat you like a god, brother. | ||
| You are in the war room with that great patriot. | ||
| Go to Frank's Speech TV. | ||
| Is that what it is? | ||
| That's it, right? | ||
| Yes, sir. | ||
| Peter Navarro here, in for Stephen K. Bannon. | ||
| We will see you on Wednesday and Friday of this week, 10 to noon, here in the War Room. |
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