June 17, 2025 - Bannon's War Room
48:53
Participants
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| Speaker | Time | Text |
|---|---|---|
| When on the air, he said, quote, we know exactly where the so-called supreme leader is hiding. | ||
| He is an easy target, but is safe there. | ||
| We are not going to take him out, kill, at least not for now. | ||
| But we don't want missiles shot at civilians or American soldiers. | ||
| Our patience is wearing thin. | ||
| You part ways with the president on that issue. | ||
| You think he should be taken out? | ||
| Well, I trust the president's judgment. | ||
| Very much I trust his judgment. | ||
| And I think for now is a term the Ayatollah should understand in Trump world is ever changing. | ||
| So what is the president trying to do? | ||
| He's letting the Ayatollah know if you attack American interests, that's the end of you and your regime. | ||
| What am I trying to do? | ||
| I'm trying to make the case that ending Iran's nuclear ambitions is not only good for Israel, it's good for us. | ||
| And they're the weakest they've been since 1979. | ||
| This region, since 1979, this regime has been repressing their people, trying to destroy Israel and have American blood on their hands. | ||
| I hope it's eliminated. | ||
| I would like to see this regime fall, but I'm going to leave it up to the president as to what to do and when to do it. | ||
| But I do know this. | ||
| If we don't take out their nuclear program now, we'll all regret it. | ||
| We're very close. | ||
| Be all in, Mr. President, in helping Israel. | ||
| Finish the job and let's see where we're at after we neutralize our nuclear program. | ||
| They're in disarray and they're very dangerous. | ||
| I don't want to underestimate the danger of being involved in these operations, but the danger of Iran having a nuclear weapon or surviving as a state sponsor of terrorism is far greater than the danger of trying to end the threat. | ||
| So that's the decision President Trump has to make. | ||
| And I think he's the right guy at the right time to make that decision. | ||
| But I'm hoping the sun is setting not only on their nuclear program, but the regime itself. | ||
| Sooner they leave the world stage, the better the world will be. | ||
| We can have true peace in the Mideast only if the regime falls, in my view. | ||
| President Trump emerging out of the White House's Situation Room after over an hour of deliberations with his national security team as he's weighing. | ||
| How to respond to the escalating conflict between Israel and Iran. | ||
| Sources telling CNN that the president is warming to the idea of using American military assets to strike Iranian nuclear facilities. | ||
| So joining me now is someone who has spent quite a bit of time in that very room with our presidents. | ||
| CNN senior military analyst Admiral James Stavridis joins us now. | ||
| Admiral, I'm so grateful to have you here. | ||
| And this obviously is a foreign policy challenge that has been on the table for decades, really. | ||
| What would you be advising the president to do, given the facts as we, as members of the public, not privy to classified information, understand them to be right now? | ||
| Let's go back to the situation room itself. | ||
| What the president deserves in this situation room is the best advice. | ||
| Ultimately, he's going to make the decision. | ||
| We elected him to make those kind of truly hard calls. | ||
| But he needs unfettered, unvarnished, take-the-bark-off kind of advice from his cabinet. | ||
| I hope he's receiving that. | ||
| I think he's probably got three broad courses of action here, Casey. | ||
| One is let the Israelis continue to pound away. | ||
| Another one is put pressure on the Iranians by moving forces into the region, sort of set the table for strikes. | ||
| But then use that leverage to get back to a negotiation. | ||
| That would be option two. | ||
| And then option three, of course, would be to conduct a strike. | ||
| Your reporting indicates he's leaning toward option three. | ||
| I just hope he's getting all of the advice of both the pros and the cons of each of those three courses of action. | ||
| Arabia would like to see the theocracy gone. | ||
| I KNOW THE EMIRATES WOULD AND MANY OTHER ARAB STATES AS WELL. | ||
| BUT THEN THERE'S THE QUESTION We saw all too well what happened in Iraq. | ||
| We saw what happened in Afghanistan when the Taliban took over in literally a matter of hours. | ||
| You've got competing factions as well who would vie to take over Iran. | ||
| On the one side, you've got the crown prince, Reza Pahlavi, who would like to go in as an interim leader. | ||
| On the other side of that fence, you've got the NCRI, the National Council for Resistance in Iran, which used to be the MEK, which a lot of people in Iran say It would be worse than the Ayatollah. | ||
| So what steps into the vacuum if the regime falls? | ||
| Well, I think what will happen is the Iranian people will know freedom for the first time since 1979. | ||
| You know, people probably ask that about Hitler in the 30s. | ||
| What would happen in Germany if we took him out in the mid-30s? | ||
| Well, I wish we had. | ||
| Because we know what happened when they let him stay in power. | ||
| And here's what I can say. | ||
| Taking the Ayatollah's regime down is a good thing, not a bad thing. | ||
| And I'm willing to risk what happens next because I know what's going to happen if they stay in power. | ||
|
unidentified
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But, sir, can you guarantee that? | |
| Can President Trump in any form, I mean, can you make the commitment that this would not lead to a longer war? | ||
| I can guarantee you that if the Ayatollah gets a nuclear weapon, he will use it. | ||
| I believe that with all my heart and soul. | ||
| So the men and women who serve, they're the ones going, not people answering a poll. | ||
| And if you ask them, would you be willing to risk your life to stop the Ayatollah from having a nuclear weapon? | ||
| All of them would say yes, because it makes their country, our country safer. | ||
| So we live in a world where you've got to confront problems. | ||
| You want to avoid World War III? | ||
| We've learned the lessons from World War II. | ||
| People in World War II appeased Hitler to the point that it got so much out of hand. | ||
| We had a world war and 60 million people got killed. | ||
| So we live in a world where you pay now or you pay later. | ||
| Let's stop this threat before he gets a nuclear weapon. | ||
| Let's end this reign of terrorism. | ||
| I can guarantee you this. | ||
| If we don't fight for our freedom, we will lose. | ||
| This is the primal scream of a dying regime. | ||
| Pray for our enemies. | ||
| Because we're going medieval on these people. | ||
| I got a free shot at all these networks lying about the people. | ||
| The people have had a belly full of it. | ||
| I know you don't like hearing that. | ||
| I know you've tried to do everything in the world to stop that, but you're not going to stop it. | ||
| It's going to happen. | ||
| And where do people like that go to share the big lie? | ||
| MAGA Media. | ||
| I wish in my soul, I wish that any of these people had a conscience. | ||
| 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. | ||
| Tuesday, 17 June, Year of the Lord, 2025. | ||
| Obviously a very action-packed afternoon, and we're packed. | ||
| This afternoon, we had a show lined up. | ||
| We were going to talk about a lot of finance and the good things that are coming out of President Trump's administration economically. | ||
| We've got a couple of Treasury officials, former head of the World Bank, Philip Patrick, all that. | ||
| We're going to get that in, but we've obviously got to talk about what happened to the National Security Council today. | ||
| President Trump came back from Calgary. | ||
| I think partially he was bored. | ||
| Number two, he had to get back to deal with the situation at hand. | ||
| They did go through alternatives. | ||
| It's pretty obvious. | ||
| at least one alternative is to consider at least some sort of strike because they're pre-positioning massive assets in the region, both naval assets and air assets, both support logistics assets and also combat aircraft that has to be viewed as at least negotiating leverage if President Trump is to try to force the hand, which looks like it's either between | ||
| Let's go to Jack Posobiec. | ||
| Jack, you're going to be on Tim Pool tonight, is that correct? | ||
|
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People can see you on the Tim Pool show? | |
| That's right, Steve. | ||
| And to the War Room Posse, yes, I'll be on Tim Pool in a couple hours tonight. | ||
| So we'll be covering all of this live. | ||
| We'll be taking super chats. | ||
| We'll be doing all of it right there. | ||
| We're tracking all of this in real time as well. | ||
| So, Jack, obviously, in the range of alternatives President Trump's looked at, his current position is, hey, I mean, his constant position is they cannot have a nuclear weapon. | ||
| I've told them they can't have a nuclear weapon. | ||
| He tried to negotiate. | ||
| They kind of tried to tap him along. | ||
| He wasn't prepared to be tapped along. | ||
| The Israelis did what they did, and now we are where we are. | ||
| Looks like the range of alternatives to date, Jack, clearly has... | ||
| They haven't released any statement, but clearly a lot of assets are being moved around. | ||
| We had Admiral Stavridis there in the cold open saying that's to give him a range of alternatives. | ||
| Admiral Stavridis is correct. | ||
| This is what he's trying to do, is have options, to have what we call optionality. | ||
| Jack, give us your assessment of the options you think are out there. | ||
| Well, Steve, I think there are a number of options. | ||
| Obviously, these range from the United States military being ordered to take runs at the political leadership or even the energy or infrastructure. | ||
| There's stealth, there's multi-role fighters there, F-35s, F-16s, F-22s. | ||
| There's also the bombers, the B-52s down at Diego Garcia. | ||
| And, of course, there's been a lot of talk about the United States coming in and having the weaponry and the firepower to take out this underground base over at Fordow, which is built for this purpose, because Israel does not have the bunker-busting bombs or the mops, these GBUs, these gravity bombs, which the— | ||
| This is part of the escalatory ladder and the tit for tat that we've seen in the distracting world and hardening world. | ||
| That the Iranians in some of these places, this is why Iran has their Shahad drones underground, for example, and all these other various facilities. | ||
| And so these options are all available to the United States. | ||
| There's also a range of options from intelligent sharing to asymmetric warfare. | ||
| So intelligent sharing, shutting down electronics, going after their communications, going after their media. | ||
| There's also a huge range that can be done there as well. | ||
| to President Trump what he wants to order happen here. | ||
| We're waiting to hear that readout from the National Security Council meeting which was told ended just a little while ago at the White House. | ||
| Jack, walk people through the gravity bomb, exactly the mechanism. | ||
| How does it actually work? | ||
| It's kind of unique, and this is why people are saying, well, maybe you put it on a, you know, a C-4, you put it on a big one of our big transport aircraft and have the Israelis push it out the back, or you put it on an Israeli aircraft. | ||
| Walk me through, what do we have here, and why the size of ours are much bigger than theirs, correct? | ||
| Yes, yes. | ||
| Russia has been much larger. | ||
| Russia has been using a version of this technology in Ukraine for quite some time now. | ||
| And essentially what the Russians are using for a smaller version of it, what it does is it turns your – to use the parlance, you turn your dumb bombs into smart bombs because what you're doing is you're able to upgrade them to a point where they have – And so they're carrying that, you know, a guidance system. | ||
| They're monitored. | ||
| It's controlled externally. | ||
| Guided bomb, you know, depending on the given weight. | ||
| That's how much explosive that it has on it. | ||
| It has radio. | ||
| And this technology has been around for quite some time, but it's really been plugged up through World War II and then even after throughout the Cold War where they've been using it. | ||
| It's only been in the Gulf War, the Ukraine War, and on that we've seen them really use now. | ||
| And so this is, it's sort of, in the way that I think of it is, is it precision-guided munitions? | ||
| It is. | ||
| It is not quite precision-guided munitions, but it is a guided bomb is the best way to think about it. | ||
| The difference between taking out the nuclear program and making sure they have no capacity to refine material and also even maybe some of the ballistic missile technology they need versus regime change. | ||
| Give me a minute on that before we go to break. | ||
| Well, Steve, this could be everything. | ||
| President Trump has been very clear that he is against Iran's nuclear weapons program. | ||
| But Iran's regime depends on far more than just that program. | ||
| They have the IRGC. | ||
| They have the Iranian army. | ||
| And, of course, all of the oil pipelines and the deals that they have with the Chinese Communist Party. | ||
| That's really where that power relies upon. | ||
| You take out the regime, and that's going to open up a whole hornet's death, possibly civil war. | ||
| This is bigger than Iraq, bigger than Afghanistan, bigger than Syria, bigger than Libya. | ||
| The shocking thing, though, I think, for a military point of view is that given all their bluster, the Israelis did take complete air supremacy, air superiority first and air supremacy so far. | ||
| It doesn't seem like there's any, you know, combat aircraft up or the combat aircraft gets up. | ||
| Their air defenses systems got destroyed. | ||
| But right now, I think in President Trump, of course, he used the royal we. | ||
| We have control of the airspace over Tehran, right? | ||
| That's never really a good sign. | ||
| All of a sudden, you're in it. | ||
| I tell you what, Jack, can you hang on a minute? | ||
| I know you're going out to Tim Pool. | ||
| We're going to take a short commercial break. | ||
| Jack Posobiec is with us. | ||
| We're going to have... | ||
| Big breaking news out of Treasury Day about the impact of President Trump's economic program. | ||
| How about the economic program on you? | ||
| Take your phone out. | ||
| Text Bannon, B-A-N-N-O-N, at 989898. | ||
| Get the ultimate guide, it's free, to investing in gold in special, investing in gold in the age of Trump. | ||
| Back in a moment. | ||
|
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Here's your host, Stephen K. Matt. | |
| Welcome back. | ||
| Gerald LaVornier is going to join us from the White House, special assistant or special counsel to Secretary of Treasury. | ||
| I want to make sure because I'm going to have some economic guys on here next. | ||
| Jack Posovic talking about the economy, talking about, you know, I got a guy from, you know, the former head of the World Bank and one of the undersecretaries under President Trump in the first term. | ||
| Philip Patrick is going to join us. | ||
| Obviously, gold is kind of on fire now. | ||
| But also, there are many economics, not just geopolitical economics. | ||
| Iran is one of the most important oil and gas producers in the world. | ||
| They provide, I think, Jack, you would agree, the Chinese Communist Party, anywhere between 1.5 and 2.5 million barrels per day, either sold directly or through the black market. | ||
| They're the principal provider to the CCP of energy. | ||
| Those oil fields and there's discussion of the oil fields may come into play. | ||
| I think Qatar and other nations around the world own, I think, the oil fields that kind of go in Bajra. | ||
| Part of it's in Iraq, part of it's in Iran. | ||
| Of course, that part down by Bajra, since it's tons of Shiite Muslims ever since the Iraq war, they kind of claim it for their own. | ||
| How big a deal is the geoeconomics here of the situation in Iran? | ||
| Well, Steve, the idea of the geoeconomics is key. | ||
| And, you know, we say on Human Events daily all the time that when it comes to geopolitics, it's sort of like, you know, the French have a phrase, cherché la femme, you know, whenever you're trying to figure out something, look for the woman. | ||
| Well, in geopolitics, we say cherché la petrol. | ||
| Look for the petrol. | ||
| Look for the oil. | ||
| And so in this, right, cherché la petrol. | ||
| You don't steal that from me, Ben, and that's all me. | ||
| I'm going to do it as an homage. | ||
| Obviously, that's one of the fastest ways that could lead to this regime change, civil war kind of breakout that we're talking about. | ||
| But if you want to talk about the global oil market impact of a massive sudden supply shock, we're talking immediately. | ||
| Huge volatility, stocks, commodities. | ||
| And you know what? | ||
| You're not sure what's going to happen, what OPEC decides to do. | ||
| Does OPEC want to cut? | ||
| Does OPEC want to keep flooding the system? | ||
| The U.S., the EU, there's going to be a lot of pressure then to release oil from strategic reserves. | ||
| Of course, Trump's been trying to fill, by the way, our strategic oil reserve. | ||
| But here we are in, you know, summer just started, and you might be seeing $6 of our oil. | ||
| Or get our guys ripping and even pumping more. | ||
| Jack, social media, you're putting up great stuff all the time. | ||
| You're going to Tim Pool. | ||
| You're on the Tim Pool Show tonight. | ||
| What is that? | ||
| Does that start at 8 o 'clock Eastern Daylight Time, the Tim Pool Show? | ||
| So that'll start at 8. So once you're done watching all your evening war room, you have your dinner, and then boom, you lock in with TimCast at 8 p.m. Eastern. | ||
| Hang on. | ||
| I'm going to try to get you from Tim's place at 7 when you get out there. | ||
| So if we get an update, we'll come right to you, okay? | ||
| Thank you, brother. | ||
| Thank you. | ||
| The great Jack Posobiec. | ||
| I want to go now to the White House. | ||
| Joe LaVornier, special counsel to the Secretary of Treasury. | ||
| Sir, today... | ||
| He talked about the increase in blue-collar wages. | ||
| It's awesome analysis you've done. | ||
| Can you walk us through exactly? | ||
| Give us the receipts. | ||
| Give us the backup. | ||
| What's actually happening? | ||
| And more importantly, why is it happening? | ||
| Sure. | ||
| So, Steve, if you look at President Trump, the first term and second term, what we looked at when I worked for President Trump in the first term is what we call blue-collar wages, which are non-supervisory production workers. | ||
| These aren't people that are part of the professional managerial class. | ||
| It's not Wall Street. | ||
| It's Main Street. | ||
| It's the backbone of Main Street. | ||
| And what we've noticed in this first five months of this Trump administration is that the annualized increase in real blue-collar wages is almost 2%. | ||
| The next closest growth we had of that magnitude in the first five months of the administration was Trump 1.0. | ||
| So it's remarkable the wage gains he has. | ||
| And that's a function really of a very pro-growth, supply-side-led set of policies where food and energy costs have been trending down significantly from where they were. | ||
| And as Secretary Besson has said, as there are fewer illegal workers that are artificially depressing wages, keeping nominal wages high. | ||
| So you have a double whammy of falling inflation. | ||
| The inflation numbers have been absolutely stellar. | ||
| At the same time, nominal wages have been strong. | ||
| So your real wages are expensive. | ||
| I want to go back, because we did this before in the tax cut in 17, and it came to fruition in 18, and really in 19. I think it was the fall of 19. You had the tremendous gains in blue-collar versus white-collar, non-college graduate versus college graduates. | ||
| Is that essentially the same thing here? | ||
| We haven't got to the extension of those tax cuts. | ||
| They're still there. | ||
| But is that what's going on? | ||
| Is it anything about the investment and jobs coming back? | ||
| I know a big part of this has got to be immigration. | ||
| What do you think is actually the big drivers here in back of this? | ||
| You're correct. | ||
| If you look at the big effects, obviously, with TICCHA was in 18 and 19. Just to put it in broader sense, from 17 to 19, those first three Trump years, real median household income was up almost $8,000, more than double what it had been in the prior 16 years of both Republican and Democrat administrations. | ||
| In the one big, beautiful bill, the tax expensing, the likelihood that we get 100% expensing on CapEx back to President Trump, President Trump inauguration day, combined with the deduction of plant equipment, factories, that is hugely supply-side generative. | ||
| And what that means, Steve, is that you're going to get strong productivity growth because you've got capital deepening. | ||
| You're giving workers more tools to produce the goods and services that people want. | ||
| If you have higher productivity, you have higher living standards, you have higher wages. | ||
| So this bill, once it passes, will codify and further implement what was built off the government. | ||
| And I'm optimistic we'll get faster growth. | ||
| We'll grow deficits so that they'll fall relative to GDP. | ||
| And most importantly, Main Street will thrive. | ||
| I mean, that's the way the theory is supposed to work. | ||
| It's the way it worked in Trump 1.0. | ||
| And by all indications, we're off to a great start so far in 25. Great start. | ||
| And this shows why the immigration policy, sealing the border and the mass deportation at the beginning of that has all worked out. | ||
| And remember, President Trump's focus in, Everybody's focused on the working class, the middle class for Main Street in a supply-side tax cut and also to make sure that everything we can do to increase productivity is there, as Dave Brett is often there warning us. | ||
| Joe, real quickly, what are you doing? | ||
| You're one of the great gets inside Treasury. | ||
| You've got an incredible team over there. | ||
| What is your title and what are you doing for the Secretary every day? | ||
| Well, this is my 10th day. | ||
| So I come from Wall Street, and I had the pleasure of getting to meet and know the Secretary a little bit in my prior private life. | ||
| I'm helping out in anything they really want me to do, Steve. | ||
| All things sort of macroeconomics and policy-related. | ||
| And it's been 10 days, but it's been fun. | ||
| And I'm hoping to get to come on with you again, and I'll have even better news to report the next time I'm on. | ||
| Well, it's pretty good news today, Joe. | ||
| Thank you so much. | ||
| Joe, do you have social media? | ||
| Where do people go to find out more about your work and what you put this up? | ||
| Yeah. | ||
| On my private role, it was at Livornianomics. | ||
| We'll see if we can make it an official government role. | ||
| But you'll probably see me a little bit more maybe on TV and radio than social media. | ||
| But we've got to fine-tune that. | ||
| Thank you, brother. | ||
| Look forward to getting all this up on social media. | ||
| Same here. | ||
| Joe LaVornier. | ||
| Thank you. | ||
| Over there, one of the team that Scott Besson's pulling together. | ||
| Really good news. | ||
| So, Malpass, you've got some observations about the Fed, as you often do. | ||
| David, you were one of the big guns for President Trump in the first term over at Treasury. | ||
| Then you headed the World Bank. | ||
| First of all, just how concerned are you about, particularly as this thing starts to spread in Iran, And whatever can happen, sabotage. | ||
| They had a thing today that there was a vessel stuck in the mouth of the Straits of Hormuz. | ||
| And I can tell you, having sailed in and out of there on a destroyer, it's not that big. | ||
| How concerned are you for global economics of what's going on in Persia right now? | ||
| Of course, concerned. | ||
| But the U.S. is powerful. | ||
| And President Trump has been really clear that's peace through strength. | ||
| And also they can't have a nuclear weapon. | ||
| So there are exit, you know, there's ways, exit ramps that they can use. | ||
| And if not, then I think there is power to control the situation. | ||
| I think we should really make a distinction between that, meaning necessary steps to control bad. | ||
| That's peace through strength. | ||
| And then turn to allowing a free market economy in the U.S. to really expand. | ||
| So in my mind, there's kind of a connection. | ||
| There is a connection to the Trump plan. | ||
| The program is to have the economy be really strong so that we have enough strength in the U.S. especially, but globally, to really see peace break out. | ||
| And he's been clear. | ||
| David, the president's been pretty critical of Powell over at the Fed. | ||
| The Wall Street Journal's got a piece. | ||
| What is your take? | ||
| You're somebody the president would always turn to and ask about these situations. | ||
| What do you think about the Fed and interest rates? | ||
| Are they ahead of the curve or behind the curve, sir? | ||
| They're behind the curve, and they're often behind the curve. | ||
| And we go from inflation to deflation because they're driving through the rearview mirror. | ||
| They're models. | ||
| Are really antiquated. | ||
| These are 40-, 50-year-old models that basically say the U.S. economy can't grow too fast or it'll be inflationary. | ||
| And that's just wrong. | ||
| There's productivity growth. | ||
| You just heard Joe Livornia talking about that as the major strategy. | ||
| If we can get manufacturing going in the U.S. and small businesses really cranking, then it's not going to be an inflationary economy. | ||
| It's going to be a growth. | ||
| So that's within reach. | ||
| There is this clear path that the data is That's the retail sales that were negative today. | ||
| The job growth in May in the household survey was weak. | ||
| We've got the prime rate at 7%. | ||
| What are you going to do with that? | ||
| And why is that where the U.S. is sitting? | ||
| So I think if the Fed is clear, and Trump has been, that we defend the dollar, we have the dollar as the reserve currency. | ||
| If the world believes that, they'll beat a path to our door in terms of Because of buying U.S. debt, dollar-denominated debt, and driving down interest rates. | ||
| I think that's within reach. | ||
| Hang on for one second, because I want to go back over this, and I've got a couple other questions. | ||
| Philip Patrick from Birch Gold is also going to join us. | ||
| Got David Malpass from Ahead of the World Bank in the World Room. | ||
| Short commercial break. | ||
|
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Here's your host, Stephen K. Vance. | |
| So, Brother Malpass, and by the way, David was Undersecretary for International, one of the most important jobs in the Treasury Department for President Trump in the first term, and then head of the World Bank, put there by President Trump. | ||
| David, when you just said the models that the Fed uses, because President Trump, let's be blunt, he's not particularly happy with Lewis Powell. | ||
| He's kind of all over the Fed. | ||
| He keeps saying they're missing the window here. | ||
| When you say the models are 40 years old and clunky, doesn't the Fed Reserve, I don't know, have like 8,000 people over there? | ||
| It's a huge organization, is it not? | ||
| That's right. | ||
| Maybe 700, I don't know, PhDs, dumb and dumber. | ||
| The Phillips curve is the idea that there's somehow a trade-off between unemployment and inflation, and you have to have higher one to get lower the other. | ||
| So the Fed is constantly talking about its mandate, that it's supposed to have price stability and full employment, and somehow those are in opposition. | ||
| Totally together. | ||
| If you have price stability, you'll have more jobs in the economy. | ||
| That's what Trump is talking about. | ||
| That's what Scott Besson is talking about today, even, of how do you get real wages up if the Fed is always leaning against it? | ||
| This is because... | ||
| They're still talking about monetarism, which is ages old. | ||
| And remember, the Fed not only sets interest rates, but they also regulate banks, and they do it poorly because they fail and the small businesses can't get credit. | ||
| And the Fed has this giant balance sheet that's been horribly managed. | ||
| They bought $9 trillion of U.S. government bonds at the very trough when yields were the lowest. | ||
| So they've got this unrealized loss on their books of maybe a trillion dollars. | ||
| We've done a whole special of this. | ||
| We've got a whole thing we've done over the last couple of years called the end of the dollar empire. | ||
| We put it out in installments. | ||
| We've got the seventh installment about the Rio reset. | ||
| Walk me through what you said in the last minute of the previous segment about making sure that there's demand for dollar-denominated bonds and that we remain the prime reserve currency, sir. | ||
| it Even today, you saw Europe saying they want to have more room for the euro on people's shelf space. | ||
| Well, that is not Really the way to have the world be safe. | ||
| You need the dollar to be the backbone. | ||
| And that's also important for crypto and digitalization of the world economy. | ||
| If you look at stablecoins, they need to be in U.S. dollars and regulated by the U.S., not by some island. | ||
| I don't know your view on that, Stephen. | ||
| People can have different views. | ||
| But I really think that we can allow and permit. | ||
| This innovation that is the core of the U.S. economy, all that has to happen is Treasury and the Fed say they plan to have the dollar be the core of the global economy for decades and decades. | ||
| That would bring down interest rates right there if they would say it. | ||
| But the PhD economists all think that the currency should just float around with no anchor at all. | ||
| I think that can be fixed pretty easily. | ||
| David Malpass, we hope to have you on here a lot. | ||
| Where do people get you on social media? | ||
| Where do they go? | ||
| On Twitter or at David R. Malpass. | ||
| Thanks, Steve. | ||
| Great show. | ||
| Thank you for coming on. | ||
| Look forward to having you back. | ||
| I think one of the things we're going to do is this, clearly this conflict between Israel and Iran, and we're picking up, did CNN just report that the... | ||
| Okay, Christy Noem, we'll get more of that, but Secretary of Homeland Security has been taken, I think, to a local Washington hospital and ambulance. | ||
| We don't know anything more than that. | ||
| As soon as we know more, we will report it. | ||
| Philip Patrick, one of my favorite people. | ||
| You had Malpash right there saying what we needed to do to make sure that we remain the prime reserve currency. | ||
| Our favorite, as you know, The Financial Times of London had this article, right, about gold. | ||
| If Denver can put it up, I want to make sure it's up. | ||
| Got Philip Patrick on it. | ||
| It starts with one of my favorite quotes, Philip. | ||
| And the headline's amazing. | ||
| As you know, Philip, we've been working together for four years now, over four years, and we talked about doing the end of the dollar empire to make sure people understood the importance of the dollar as the prime reserve currency and how that was so important. | ||
| And then what backed that up? | ||
| Now, the Financial Times of London today does this big story, how gold became the world's refuge from uncertainty, which is kind of the thesis that we've been talking about for four years. | ||
| The subheadline, in an era where core assumptions about the global economy are being questioned, gold has once more become an anchor, especially for central banks, as you've reported for four years here. | ||
| But the lead paragraph, though, talks about one of my favorite quotes is by, It's by John Maynard Keynes, who was the economist that really, after the war, after World War I, they all kind of, you know, went into Keynesianism, which hadn't been really grasped before, which meant bigger governments, bigger government stimulus, which we're living through, that $2.5 trillion, $2 trillion deficit. | ||
| You see, here we say that is a Keynesian stimulus to an economy. | ||
| And Keynes called gold a barbarous relic. | ||
| Of an ancient world, sir. | ||
| So break down the Financial Times and really the Financial Times coming to understand what we've been kind of laying out for this audience for four years, sir. | ||
| Yeah, look, I mean, as you say, we've been talking about this for a long time. | ||
| First of all, we can, I think, clearly show that John Maynard Keynes was incorrect, calling gold a barbarous relic. | ||
| Seeing gold this century outperform almost every other asset class, I think it's very clear. | ||
| But I thought a very good article, it was summarizing a lot of what we've talked about over, as you said, the last few years. | ||
| And that is, slowly we are disincentivizing the world to hold our dollars, right? | ||
| After 1946, what incentivized the world to use dollars was redeemability, right? | ||
| It was the only currency in the world that, you know, Following 71, it was the petrodollar agreement, right? | ||
| The world had to use dollars to buy oil. | ||
| 40% of the world's oil supply came from OPEC. | ||
| It guaranteed this demand, right? | ||
| Since then, it's really been stability, right? | ||
| The dollar, as far as currencies go, has been the most stable. | ||
| All of that being said, the world has been incentivized to hold our US dollar. | ||
| Well, what have we seen really since the Biden administration, right? | ||
| We've seen devaluation of currency. | ||
| We've seen weaponization of our currency. | ||
| Central banks around the world are looking at dollars now more as a liability than as an asset. | ||
| Even Trump's policies, listen, Trump's been trying to thread the needle. | ||
| Things like tariffs, they tell nations around the world, look, we understand why he implemented them. | ||
| We have to boost domestic manufacturing. | ||
| But tariffs have negative impacts as well. | ||
| They force countries to diversify away from our currency. | ||
| Even the big, beautiful bill, right? | ||
| Trump was elected with a mandate. | ||
| I said to you before, I'm torn on this, right? | ||
| You know, he was elected with a clear mandate to shore up the borders. | ||
| This stuff is expensive, but it comes with consequences, right? | ||
| That is an explosion in deficits, right? | ||
| The dollar, again, less attractive to foreign investors. | ||
| What about the revenge tax within the big, beautiful bill, right? | ||
| The Financial Times reference that specifically. | ||
| I understand why Trump has it in there. | ||
| It's one more weapon that Trump can use to balance global trade. | ||
| But I also understand that as a foreign investor... | ||
| That's a concerning thing for me. | ||
| So my concern now is not that we lose global reserve currency status, but that we move into a more multipolar world, right? | ||
| Other currencies being used, demand for the dollar waning longer term. | ||
| Longer term, that can put our position as global reserve currency under threat. | ||
| So, you know, we've been talking about this for a long time. | ||
| I think Biden put President Trump into a corner. | ||
| We're trying to fight our way out. | ||
| But it's a very, very tough battle. | ||
| What's the hardest thing he has to do? | ||
| Because I'm going to expand the conversation and talk about this current war that's going on, and particularly if it expands. | ||
| But as you sit here today with all the policy levers President Trump is trying to do, and you just heard Joe Lavornier from Treasury talk about some good news we're hearing at the get-go, right, particularly about blue-collar wages. | ||
| What is the hardest thing you think President Trump and Besant have to do? | ||
| To thread the needle? | ||
| It's such a very tough question. | ||
|
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If I had the answer to that, I may be sitting next to both of them. | |
| Hold it. | ||
| We had the answer. | ||
| Philip, Patrick, and Steve, I wouldn't be doing this. | ||
| Philip wouldn't be there. | ||
| We'd have the Patrick Bannon hedge fund. | ||
| There's no question about it. | ||
| Look, I think it's all about creating incentives. | ||
| And this is where politics and economics cross. | ||
| If you ask me as an economist what we have to do, the answer is not politically viable. | ||
| What we have to do, really, is curb spending. | ||
| We have to sort of generate more revenue. | ||
| We've got to tighten the belt buckle. | ||
| Ultimately, that's the way to do it. | ||
| President Trump's strategy is a riskier one, right? | ||
| And that is to grow the economy and to do it at a rapid rate, faster than debt. | ||
| But I don't envy President Trump's position. | ||
| I've said before, if I left with his legacy in 2020, I wouldn't be back again, because this is a much more difficult fight he has in front of him. | ||
| He's got to balance things in a way that I think is going to be difficult to do, but he's got to incentivize. | ||
| Listen, I thought the trade deal he struck with the United Kingdom was genius, right? | ||
| That was a way to sort of work China out of crucial supply chains while sort of maintaining good relationships with our European counterparts. | ||
| I think that should be the blueprint for any future trade deal. | ||
| It's a tough one. | ||
| I think curving deficit spending is going to be key. | ||
| Trying to get a handle on the debt is going to be key. | ||
| And growing the economy is going to be key. | ||
| But we're in a very tough position. | ||
| Look, it wouldn't surprise me, and you and I have said this for a long time, 20 years from now, people take an economics course. | ||
| There's going to be discussions about the 60-year experiment from 1970 to 2030 with a global, free-floating, unbacked currencies and how it failed, right? | ||
| And I think, ultimately, that is the biggest. | ||
| This is how every empire in history has collapsed, and we're heading down that path. | ||
| Let's go back to that, because the Financial Times talks about that too, and talking about Keynes, that there was a system in place really from the post-war period, given the devastation. | ||
| Remember, they didn't have a system in place really, you know, from World War I to the Second World War, and it was that, people forget, it wasn't just World War I that caused World War II. | ||
| Keynes came to prominence because he wrote a book about the Versailles Treaty, and he called it the economic consequences of the peace, where he kind of forecasted that, hey, there's some bad things going to come, particularly about reparations and debt in Germany and some of these countries not being able to pay this off, that maybe the terms were too tough. | ||
| And people didn't listen to him. | ||
| And of course... | ||
| It really destroyed the currency. | ||
| And when you destroy a country's currency, you really destroy the fabric of the country. | ||
| Do you not, Philip Patrick? | ||
| Yeah, absolutely. | ||
| I don't think any historian disagrees with that position today. | ||
| The Treaty of Versailles put the German people in dire straits, and desperate people do desperate things. | ||
| There's no question about that. | ||
| Philip, can you hang on for a second? | ||
| I want to hold you for another block. | ||
| I've got some other questions I ask you about the current situation, particularly as President Trump goes through and looks through various alternatives to deal with this situation in Persia. | ||
| Don't know if we're going to hear from the president tonight or not. | ||
| Maybe even a press avail, etc. | ||
| A lot of rumors going around. | ||
| We're going to try to track them all down. | ||
| Short commercial break. | ||
| You've got Philip Patrick of Birch Gold. | ||
| Just take your phone out right now. | ||
| Text Bannon, B-A-N-N-O-N at 989898. | ||
| Get the ultimate guide for investing in gold and precious metals in the age, not the era, the age of Trump. | ||
| It is pretty straightforward. | ||
| It gives you access to Philip Patrick's team at Birch Gold. | ||
| Short commercial break. | ||
| Philip Patrick on the other side. | ||
|
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We rejoice when there's no more. | |
| Let's take down the CCP. | ||
|
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War Room. | |
| Here's your host, Stephen K. Mann. | ||
| We'll be right back. | ||
| Okay. | ||
| Philip Patrick, the geopolitical concern, flight to quality, we've had... | ||
| It's about safe havens. | ||
| There's all kind of rumor tonight that President Trump may come and address the nation. | ||
| We have not heard anything official, right? | ||
| We know that people are reviewing a range of alternatives, including continue on negotiations, but give them a play me or trade me now. | ||
| But if this continues down the path, and clearly Israel is going to keep pounding the Persians, and the Persians are going to pound back. | ||
| And if the oil assets and resources get hit down there by Bajra and those massive fields down there, what's your sense of where this could head as far as financial markets and particularly gold? | ||
| Look, I think it's in our interest for President Trump to try and end this as quickly as possible. | ||
| Obviously, some of it, a lot of it's out of his control. | ||
| But the longer this goes on, the worse it is for global financial markets. | ||
| We saw an immediate response, obviously, from energy markets. | ||
| A 7.5% spike in oil prices last Friday. | ||
| On the back of that, obviously, gold, the traditional safe haven, when US treasuries are not, spiked as well. | ||
| It drove up 1.5% on the back of that news alone. | ||
| From a broader economic perspective, regional instability adds to Fuel the existing inflation that's happening here in the United States and around the world. | ||
| And it comes at a time when major economies are already strained, right? | ||
| Europe's in recession. | ||
| China's growth is splattering. | ||
| And our own GDP in the first quarter was negative 0.1%. | ||
| 3%. | ||
| So I would say geopolitical shocks like this, they don't create an economic crisis, but they put pressure on financial system and make the craps worse at a time when we really can't afford to. | ||
| So this isn't welcome news domestically for the economy, but I don't see where this goes. | ||
| We've had sanctions on Iran since the 1970s. | ||
| They don't appear to be stopping them pursuing a nuclear weapon. | ||
| I don't know. | ||
| Again, geopolitics is not my forte. | ||
| From an economic standpoint, we've got to end this as quickly as possible. | ||
| Otherwise, it's going to be the catalyst for the Fed to keep interest rates where they are. | ||
| That's the last thing we need from a debt standpoint and from a growth standpoint. | ||
| In an era of future instability, and you just mentioned that, hey, people are going to study from 1971 to 2030 when you kind of had this floating, you had fiat currencies out there, right, without anything really backing it up. | ||
| In the article, they talk about central banks have had this kind of fascination with gold here recently. | ||
| And that's one of the reasons that the price of gold, we tell people it's not the price, it's the process. | ||
| You've got to learn what's in the back of it. | ||
| That's been very strong demand by central banks. | ||
| And we've got the BRICS nations. | ||
| In fact, you guys will be down there reporting from down there in Rio for the Rio reset. | ||
| What is your anticipation of the appetite of the central banks to continue to purchase gold at kind of the rates that they've been purchasing it in the last couple of years? | ||
| I mean, look, the trajectory is not letting up. | ||
| Gold buying is increasing. | ||
| The biggest single quarter in world history was the fourth quarter of 2024. | ||
| We saw a slight tail off first quarter of this year, but the trend generally is increasing, and I think it'll continue to increase. | ||
| We have to remember the traditional safe haven asset. | ||
| Was U.S. government debt, Treasury specifically. | ||
| What we are seeing now is demand for that debt is waning, right? | ||
| The Fed lowered interest rates. | ||
| Boring rates on the 10-year went up 70 basis points. | ||
| On the 30-year, 100 basis points, which is concerning. | ||
| I'm of the belief that trend will continue. | ||
| And until another currency appears, right? | ||
| There is not a currency better than the dollar today outside of gold. | ||
| Until that appears, I think central banks will continue increasing gold holdings. | ||
| Let's not forget, gold overtook the euro as the number two global reserve asset last year. | ||
| My feeling is those trends continue. | ||
| Well, Philip, how do people start to work with your team? | ||
| How do they start to work with your team? | ||
| Where do they go? | ||
| Of course. | ||
| So very simple. | ||
| Information is big for us as it is for you. | ||
| So birchgold.com forward slash Bannam or text. | ||
| Bannon to 989898, either one. | ||
| That will get them access to free information kits, how and why to buy precious metals today, and importantly, the installments at the end of the dollar empire. | ||
| So birchgold.com forward slash Bannon. | ||
| They can reach me personally on Getter at Philip Patrick. | ||
| And people, just remember, we don't get into it a lot, but Birch School's got all kind of methodologies and mechanisms. | ||
| 401Ks, IRAs, tax deferred, all of it. | ||
| Get into the details with them. | ||
| We've partnered with these guys for four years now. | ||
| It's been a great partnership because And as Philip said, it's had a better run in this century than any asset. | ||
| Pretty, it's not what gold's really set up to do or done historically, but hey, you never know. | ||
| Philip Patrick, you guys over at Birch Gold are terrific, and thank you for taking care of everybody. | ||
| Thank you for having me, Steve. | ||
| Good to see you. | ||
| If you get in with his team over there, it would be a very good experience. | ||
| Birchgold.com. | ||
| Go check it out today. | ||
| Put promo code Bannon in there, and you get all the free access to information. | ||
| Mike Lindell, did you win or did you lose? | ||
| Mainstream media told me you lost. | ||
| I'm hearing from the alternative media, us, that you won. | ||
| What is it? | ||
| It's a big win, everybody. | ||
| My pill, 100% innocent. | ||
| We got completely validated that we did nothing wrong, never did anything wrong. | ||
| And I want to tell you, Steve, the other part that the mainstream media is telling you, my statements, they said there's three of them, that I made, realized they were all after I was attacked. | ||
| It's like being in jail. | ||
| And you bad-mouthed the guard. | ||
| And you're in jail and you weren't supposed to be there. | ||
| They sued me first before I did anything. | ||
| And you know what? | ||
| It's the same team that called my pillows lumpy. | ||
| Remember that? | ||
| Same attorney. | ||
| I think I called them all criminals. | ||
| And you know what? | ||
| They're coming after me for it. | ||
| But we won you guys. | ||
| We keep fighting. | ||
| And my pillow is here to stay. | ||
| We're not going anywhere. | ||
| And they asked me if I'm going to quit talking about securing our elections. | ||
| Of course I am. | ||
| And I wanted to get on here. | ||
| I want to thank the War Room Pile to you guys. | ||
| This is the last few hours we did this. | ||
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