July 26, 2025 - Bannon's War Room
48:55
Participants
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| Speaker | Time | Text |
|---|---|---|
| Trying to rewrite the history of Russia's meddling in the 2016 election in accusing former President Barack Obama of treason. | ||
| The Director of National Intelligence, Telsi Gabbard, alleged Obama and his deputies engaged in a, quote, seditious conspiracy by manufacturing a false assessment that Russia meddled in the 2016 election to help Donald Trump's campaign. | ||
| To be very clear, these allegations are demonstrably false and so ridiculous that it led to a rare, rare rebuke from former President Obama's office, calling the claim, quote, outrageous, bizarre, and quote, a weak attempt at distraction. | ||
| And former CIA official tells NBC News, Gabbard and the White House are lying about Intel on Russian interference in 2016. | ||
| Susan Miller, a retired CIA officer who helped lead the team that produced the report about Russia's actions during the 2016 campaign, told NBC News it was based on credible information that showed Moscow sought to help Trump with the election, but that there was no sign of a conspiracy between the Kremlin and the Trump campaign. | ||
| The White House and the administration are promising, it seems, to use the full weight and power of the government to try and paint Barack Obama and many others as treasonist to this country. | ||
| And to be clear, unless it's changed, being guilty of treason is punishable by death in this country. | ||
| That's what happens if you're found guilty of treason. | ||
| This is a moment that is shocking. | ||
| We shouldn't be surprised, but I am still shocked. | ||
| Yeah, well, I think it's a real mark of desperation that they have resurrected an eight and a half year old intelligence community assessment claiming that President Obama and national security officials were involved in this conspiracy, a cabal, that was trying to undermine President-elect Trump. | ||
| Nothing could be further from the truth. | ||
| There have been countless reviews of the assessment that's been done over the years in terms of the John Durham investigation, the Bob Mueller investigation, the bipartisan Senate Intelligence Committee review. | ||
| It was publicly validated and endorsed it. | ||
| And that Senate committee was, the acting chairman at the time was Marco Rubio. | ||
| Tom Cotton, the current chairman, was a member of that committee as well. | ||
| It was a full-throated endorsement of it and basically complimenting the CIA and the intelligence community for putting together that piece on such a very important issue, which is Russian meddling in U.S. presidential elections. | ||
| I would like to think that all Americans are outraged over that. | ||
| I'd like to think that Donald Trump and the Republican Party should be outraged over it as well. | ||
| But clearly, they are not. | ||
| And now they're using this, I think, as a very shiny distraction in order to, you know, shift the attention away from some of his other problems. | ||
|
unidentified
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And on immigration, you better get your act together. | |
| Or you're not going to have Europe anymore. | ||
|
unidentified
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You've got to get your act together. | |
| And we, you know, as you know, last month we had nobody entering our country. | ||
| Nobody. | ||
| Shut it down. | ||
| And we took out a lot of bad people that got there with Biden. | ||
| Biden was a total stiff. | ||
| And what he allowed to happen, but you're allowing it to happen to your countries. | ||
| And you've got to stop this horrible invasion that's happening to Europe. | ||
| Many countries in Europe. | ||
| Some people, some leaders have not let it happen. | ||
| And they're not getting the proper credit. | ||
| I could name them to you right now, but I'm not going to embarrass the other ones. | ||
| But stop this immigration is killing Europe. | ||
| What do you now have that refutes those two records? | ||
| I will encourage you, in my role as the Director of National Intelligence, my job again, as I said when I came into this role, was to make sure that we are telling the truth to the American people and that we are ensuring that the intelligence community is not being politicized. | ||
| So I'm not asking you to take my word for it. | ||
| I'm asking you and the media to conduct honest journalism and the American people to see for yourself in the documents that we've released now. | ||
|
unidentified
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And it's your belief that those two previous investigations missed that or covered it up? | |
| I'm telling you to look at the evidence. | ||
| Look at the evidence and you will know the truth. | ||
|
unidentified
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Director Brennan, we've been looking at this evidence, as you said, for eight years. | |
| We know what the truth is. | ||
| What's she doing there? | ||
| I think she's projecting. | ||
| Obviously, she's engaged in the politization of intelligence to support Donald Trump. | ||
| And so she is pointing to previous intelligence products that we put out and saying that this was a political, politically designed product. | ||
| I think what she's trying to do is to gain the good graces of Donald Trump. | ||
| Clearly, several weeks ago, she was on the outs. | ||
| Yeah, because Donald Trump said that basically that she was wrong when she said earlier that the Iranian nuclear program, the weaponization program, had not restarted. | ||
| And so I think they were seeing that she was not being invited to meetings. | ||
| She was not in the confidence of Donald Trump and others. | ||
| And so in a very, I think, hurried sort of exposition here of information, she puts this out. | ||
| I wish she would look at the evidence. | ||
| I wish she would look at the assessment. | ||
| I wish she would look at the reviews that were done. | ||
| But clearly, she is not interested in the facts. | ||
| She's not interested in the truth. | ||
| She's just interested in trying to cast aspersions at intelligence professionals who really did their best under difficult circumstances in 2016 when Russia was fully engaged in this election interference. | ||
| This is the primal scream of a dying regime. | ||
| Pray for our enemies because we're going medieval on these people. | ||
| You're not going to free shot 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're trying 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
|
War Room. | |
| Here's your host, Stephen K. Baff. | ||
| It's Saturday, 26th July, Eariverlord, 2025. | ||
| Of course, we're here for the Saturday morning show on War Room. | ||
| As you know, it's always my favorite. | ||
| We're going to get to President Trump in Scotland. | ||
| We're going to have Matthew Godwin, one of the world's best experts on populists, on the rise of populist nationalism, from the United Kingdom and a specialist in Brexit is going to join us. | ||
| Ben Harn will join us. | ||
| Josh Pettit is going to talk about President Trump's. | ||
| We're actually going to walk you through why President Trump's there to see his golf courses and launch a new one that some of them have been very controversial, very controversial, why President Trump's turnaround of the classic Turnberry, which is one of the greatest venues in the open rota, is not in the open rota by the rule and ancient because of Donald Trump. | ||
| We'll get to all that a little later. | ||
| A lot we're going to break down. | ||
| Tulsi was up on, Charlie Kirk did a great job on Fox and Friends this morning. | ||
| I've already posted some of the stuff from actually Carly Bonet, Midnight Writer. | ||
| She did some great clips. | ||
| Charlie did a great job. | ||
| Tulsi Gabbard's been over there. | ||
| Eugene Daniels used to be at Politico. | ||
| Eugene Daniels is now the host of The Weekend since the weekend crew moved to every night on the weeknight in MSMEC. | ||
| And Eugene Daniels, I think, lays out the case as bad as well as can be. | ||
| Of course, he says demonstrably false, and this is all a misdirection, but he lays out exactly kind of what the stakes are. | ||
| And Brennan, you know, Brennan's lawyer ought to tell him just to shut up, but I love what he's doing because he's just burying himself deeper and deeper and deeper. | ||
| And when he's doing Saturday morning shows, right, those Friday night and Saturday morning, the brother's nervous, right? | ||
| He's out there all the time. | ||
| This is a distraction. | ||
| And we did this. | ||
| We got this great product. | ||
| Okay, fine. | ||
| We're just going to go through the receipts, bro. | ||
| Before your perp walk. | ||
| So we'll get to all that a little later. | ||
| I wanted to start with one of the most serious people in the country and someone that people in the White House, people at Treasury, capital markets, and of course the MAGA movement takes very seriously when she's ever doing an interview or giving analysis. | ||
| That's the great Judy Shelton. | ||
| I've got a call open for her. | ||
| I'll do in the second block. | ||
| Judy, you know, the president, we've got some clips we want to show you a little later, but the president went to the Federal Reserve on the same day Scott Besson, the Secretary of Treasury, saying, hey, look, this is just not about a new chairman. | ||
| We need a fundamental review, strategic review of exactly what we're doing here as a central bank. | ||
| What's their mandate? | ||
| What's the plan? | ||
| Are they helping us or hurting us? | ||
| I think you've been, and I would say the most prominent of the critics of the Federal Reserve. | ||
| Can you walk us through your thoughts about what Scott Besson with the Secretary of Treasury is saying? | ||
| Because the media, as they always do, they've got to focus on palace intrigue. | ||
| So it's this person, that person. | ||
| But you've argued for a while we have a much deeper and systemic problem with our central bank. | ||
| Ma'am, the floor is yours, your observations about where we stand with this central bank right now. | ||
| Well, first, Steve, let me just say how honored I am that you invited me. | ||
| I'm so glad to be with you this morning. | ||
| As far as the Federal Reserve, boy, do I welcome this. | ||
| They really needed a come-uppance. | ||
| For too long, the Fed has been accumulating power and prominence in financial markets. | ||
| It's entirely too political itself. | ||
| And I think that the chair, Jerome Powell, was setting himself up as some kind of an emperor who was going to sit in judgment. | ||
| And yes, an elected president could come in and put forward their supply-side program of lower taxes and less regulation and smarter trade policy and better energy policy. | ||
| And the Fed would just sit there in judgment and decide if it would allow those things. | ||
| And it really came to a head when Chair Powell made that speech at the Economic Club in Chicago. | ||
| And I think he bought the farm when he did that. | ||
| Because finally, the disconnect between the world of central banking and all the Americans who voted for President Trump and want those policy changes, who want an economy that's growing, who want an emphasis on the private sector, the real economy, they just said, now wait a minute, he's talking about tariff-caused inflation as if that's a done deal. | ||
| And it's time to call the Fed out. | ||
| It can no longer just say, oh, then you're threatening the sanctity of central bank independence or markets might get royal. | ||
| I'm telling you, we're going to see the central bankers double down. | ||
| Because when Chair Powell goes to Europe and he gets toasted by Christine Lagarde, the head of the European Central Bank, and he gets a standing ovation as she says, oh yes, we all hope to be as brave as he is in resisting. | ||
| I presume she means being fired. | ||
| I mean, no one got fired when we hit 9% inflation, the highest in 40 years. | ||
| And yet the Fed talks about transparency and accountability, but it's kind of cheap grace because in the end, the Fed just keeps perpetuating its own power. | ||
| It has wrong models, wrong mechanisms. | ||
| It needs an entirely new construct. | ||
| I welcome when Treasury Secretary Scott Besson said we need fundamental reform. | ||
| It matters a lot more than whether the Fed reduces 25 basis points in July versus September. | ||
| And even the building renovation project, that's just the thread that we can now pull to unravel all of the problems at the Fed. | ||
| Running at an operating loss since September 2022, over $900 billion in unrealized capital losses on its own portfolio. | ||
| And for me, the worst, the Fed paying interest on reserve balances, which means it doesn't engage in open market operations to set monetary policy. | ||
| It dictates the interest rate. | ||
| In a free market economy, It fixes the interest rate, the price of loanable capital, and it does it by paying banks not to make loans and not to put their money in Treasury securities, which would bring down those rates, which do affect the real economy. | ||
| So I'm happy I'll be meeting with Republican senators next week at their steering committee meeting. | ||
| You have a number of senators who are finally willing to exercise, I think, their constitutionally mandated oversight responsibility. | ||
| Section 1, Article 8. | ||
| They're supposed to regulate their money. | ||
| Judy, hang on for a second. | ||
| We're going to take a short commercial break. | ||
| Judy Shelton is with us this morning on one of the most fundamental issues in this country about the central bank, currency, interest rates, all of it. | ||
| An update. | ||
| As we told you, Fishback has got a court hearing on Monday about whether under the sunshine laws, I think from the 1970s, 1980s, they can even have a private meeting. | ||
| These meetings can be private and not open to the public on Tuesday at the Fed. | ||
| The Fed, yesterday, I think their lawyers claimed it would be a grave disservice to the public if these things are transparent. | ||
| So we're getting at all that. | ||
| End of the Dollar Empire, eight free installments. | ||
| Excuse me, seven free installments. | ||
| We're working on the eight. | ||
| End of the dollar empire. | ||
| Birchgold.com slash bannon. | ||
| Find out all about the prime reserve currency. | ||
| One thing I want to ask Judy about is about this fight from the very beginning of our republic about central banks. | ||
| If you get End of the Dollar Empire, go to birchgold.com slash Bannon. | ||
| The first, I think, two free installments actually talk about that in the 19th century when we really had debates all the time about currency. | ||
| Short commercial break. | ||
| Judy Shelton about our central bank, our currency, all of it next in the War Room. | ||
|
unidentified
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| Let's find Philadelphia much change, Mr. Joseph. | ||
| More change than I could have imagined, Mr. Hamilton. | ||
| Not the city itself. | ||
| All cities swallow everything in their way. | ||
| That's no surprise to me. | ||
| That's why I abhor them. | ||
| But I have been, as you know, in revolutionary France, where the streets are filled with the songs of liberty and brotherhood and the overthrow of ancient tyrannies of Europe. | ||
| And to return from there to this, our cradle of revolution and find the dinner-table chatter is all of money and banks and authority is an unwelcome surprise. | ||
| Unwelcome, perhaps, but necessary. | ||
| I must admit, Mr. Hamilton, I am a little uncertain as to the purpose of the Treasury Department. | ||
| No doubt its function will reveal itself to me in good time. | ||
| The future prosperity of this nation rests chiefly in trade. | ||
| Trade depends, among other things, on the willingness of other nations to lend us money. | ||
| And how would you propose to establish international credit? | ||
| Our first step would be to incur a national debt. | ||
| The greater the debt, the greater the credit. | ||
| To that end, I have recommended to the President that Congress adopt all the debts incurred by the individual states during the war through a national bank. | ||
| The idea being that if the states owe Congress money, then other nations will feel more inclined to lend it to us. | ||
| If the states are indebted to a central authority, it increases the power of the central government. | ||
| Exactly. | ||
| The greater the government's responsibility, the greater its authority. | ||
| The moneyed interest in this country is all in the north, so the wealth and power would inevitably be concentrated there in the federal government to the expense of the south. | ||
| If that is the case, it is unavoidable if the union is to be preserved. | ||
| I fear our revolution will have been in vain if a Virginia farmer is to be held in hawk to a New York stock jobber, who in turn is in hawk to a London banker. | ||
| The opportunities for avarice and corruption would certainly prove irresistible. | ||
| Well, there you have it, as I have heard said. | ||
| Men were angels, and no government would be necessary. | ||
| Right there, you see, and that is from the classic John Adams on HBO. | ||
| And I strongly recommend if you have not watched that and watched it with the family, you do it right there at the very beginning of the country. | ||
| That is, ladies and gentlemen, the very first cabinet meeting of General Washington and President Washington's very first cabinet meeting with Jefferson newly returned from France and Alexander Hamilton. | ||
| And what is the argument at the very first cabinet meeting, the very first topic? | ||
| Money, debt, central banking, all of it. | ||
| Judy Shelton, so the beginning of our republic, ma'am, this has been a central issue. | ||
| It's not taught, right? | ||
| They don't want you to know about this, but this went all the way through Andrew Jackson, all the way through, in fact, the great 1836 to, I think, 1911, 1913. | ||
| It was one of the greatest periods of growth in world history. | ||
| We did it without a central bank. | ||
| Your assessment of this, ma'am. | ||
| Steve, that conversation you just aired is so riveting. | ||
| And it shows that from the beginning, it was this slippery slope between wanting to preserve the founding principles of a nation that believed it was capable of self-government and that it would achieve this by empowering individuals Economically. | ||
| They would have freedom to plan their own lives. | ||
| They were deemed capable. | ||
| In the Constitution, in Article I, Section 8, when Congress was granted the authority to regulate the money, it's in the same sentence as the one that gives Congress the power to establish the official standard of weights and measures, because money was meant to be a measure, an honest measure. | ||
| And so this tension between Alexander Hamilton, who wanted to convince President Washington that the United States needed to be a big player and issue debt and gain credit and become part of that international system for purposes of trade, | ||
| there are some valid arguments there, and taking on the debt of the individual colonies, which were now newly independent states, but beneath the protection of the United States of America as a nation on its own. | ||
| Jefferson had written notes on the establishment of a money unit for the United States. | ||
| And what Jefferson had emphasized is money, we have to have money that people can take straight up. | ||
| And it shouldn't be a sophisticated thing. | ||
| It should make sense to the people who carry out their everyday transactions. | ||
| He said it should be easy to understand. | ||
| It should be familiar, and it should give confidence. | ||
| And it will help unite these earlier colonies into their own country. | ||
| So Jefferson was highly suspicious of central banks because he thought, if you approve that and you issue debt and you're putting that burden, adding that to the yoke on members of the public, how are you so different from these other tyrannies dominated by a king? | ||
| And both gentlemen, both of these great men in U.S. history, wrote lengthy essays to try to convince Washington. | ||
| Washington was very reluctant to agree to establish a bank. | ||
| But in the end, I think for these pragmatic purposes of gaining entry into what was then the international trading system and being seen as a legitimate authority and a new nation, he acquiesced. | ||
| But as you say, later in the 1800s, when we issued greenbacks and during the Civil War, and the idea was the government would just have these IOUs with no connection to gold reserves or backing of any kind, but they had to be accepted as legal tender, that prevailed during the war. | ||
| And right after the war, the very man who had approved that as a treasury official became the head of the Supreme Court. | ||
| And he said that what he had done was unconstitutional. | ||
| He ruled that that was a violation of really these same founding principles that are in the Constitution. | ||
| So this tension goes on, and I'm so pleased. | ||
| It was so gratifying to see President Trump looking very natural in a hard hat for construction, really confronting, and I think bringing down to size, this chairman of the Fed. | ||
| And the message there for me was that when you have a change of leadership, and I think he's hitting on all cylinders remarkably in all these foreign policy areas, on the border, he's doing so much, challenging a corrupt DOJ. | ||
| But on this big question, what is the appropriate role of a central bank in a free market economy? | ||
| And you hear all the invocation of the dual mandate, but really that's the way the Fed protects itself. | ||
| I would put the next Fed chairman should be someone who puts the Constitution ahead of the Federal Reserve Reform Act of 1977. | ||
| And I might also point out that the Humphrey Hawkins Act of 1978, contrary to what people say about establishing central bank independence, says in it several times what we need, and I'm quoting, this is legislative language, is improved coordination among the President, the Congress, and the Board of Governors of the Federal Reserve. | ||
| And it was meant to help use an all-of-government approach to achieve national economic priorities, one of which was a better trade balance. | ||
| So I just think the Fed has gone off the rails and kind of believes its own press clippings when, in fact, it is not serving the public and it is not carrying out the function. | ||
| I mean, even the dual mandate, stable prices, that was meant to mean zero inflation. | ||
| Again, read the legislation, zero inflation. | ||
| The Fed in 1996, when Alan Greenspan was the chair, discussed what it meant to deliver stable prices. | ||
| And Greenspan thought it meant zero inflation. | ||
| What else could it mean? | ||
| But he was talked out of that by Janet Yellen, who was on the Federal Open Market Committee at the Federal Reserve. | ||
| And she thought, let's have perpetual low inflation, basically, because through Keynesian principles, that's how you fool wage earners. | ||
| If the economy takes a downturn, and let's say normally that meant companies did 1% less business and you would maybe cut wages 1%. | ||
| She said, oh, no, no. | ||
| If you have inflation at, say, 2% or 3%, you can actually give them a raise and they won't realize that in real terms, they've lost purchasing power. | ||
| And that has been the Fed's policy to deliberately debase the dollar. | ||
| Even at 2% a year, they would pat themselves on the back to get down to 2%. | ||
| But think of that, over a decade, losing 20% of your purchasing power. | ||
| I just think I'm amazed the American people have put up with it, and I'm delighted that I think we're now starting to confront the Fed about these long-standing policies that have not served the aims or been consistent with the principles of America. | ||
| Judy, can you hang on one second? | ||
| We'd love to hold you to another break. | ||
| And the reason is, is that as President Trump, you saw at the beginning with this issue with the deep state and going through this investigation, President Trump, this is signal, not noise. | ||
| He's going after the fundamental institutions that control your life and actually asking basic questions. | ||
| Do they serve a purpose? | ||
| Do they need to be purged? | ||
| Do they need to be restructured? | ||
| Or do we even need them? | ||
| Judy Shelton, one of the biggest observers and critics of our central bank, the Federal Reserve, will be on the other side. | ||
| Take your phone out. | ||
| Text Bannon, B-A-N-N-O-N, at 989898. | ||
| Get the ultimate guide from Birch Gold, Ultimate and Free Guide for Investing in Gold and Precious Metals in the age of Trump. | ||
| Short break. | ||
|
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Here's your host, Stephen K. Bannon. | |
| So, as you can tell, we're starting a big project here. | ||
| It's going to take many months, but it is to basically deconstruct, and you will be a part of this, this audience, as you've been in all these fights and wars we've had over the last five years, about the restructuring of exactly how this economic system works. | ||
| Now, you've already done it. | ||
| You've had President Trump's back on the commercial relationships and trade. | ||
| One of the reasons in Scotland, he's going to talk to the head of the EU. | ||
| He's going to talk to Starmer. | ||
| And like he said today, hey, we're going to talk trade and I want to talk this deal, but you guys got to get your house in order with migration. | ||
| He was very blunt with these folks. | ||
| Our former co-host, Peter Navarro, we'll get him on to be part of this. | ||
| Of course, our contributors over the years, Russ Vogt, and of course, the Secretary of Treasury, Scott Besant. | ||
| We'll have him and Joe Lavronier with a lot of analysis and assessment as we go on in the days, weeks, and months ahead. | ||
| And of course, we had David Malpass, and we'll have E.J. Antonio and all this. | ||
| And we're going to be asking these basic fundamental questions that Scott Besant, our former contributor, put on the table. | ||
| It is now time to really go through the Federal Reserve and take it apart and look at it and find out what its strategy is, what's actually happening, what are the control mechanisms. | ||
| And I think we've got to get back to the very basics, what its purpose is and do we need it. | ||
| Judy mentioned just in passing a $900 billion loss, unrealized loss on their balance sheet right now, almost a trillion dollars. | ||
| Judy, we just had the AI action plan. | ||
| We've got artificial intelligence. | ||
| We just beat back a central bank digital currency. | ||
| This audience, with MTG and a handful of others, made sure that we had an independent vote passed so we wouldn't go to a central bank digital currency because they were about to pass that up on Capitol Hill. | ||
| So we're on the eve of a revolution that will be the greatest industrial revolution, at least to date, with artificial intelligence and the convergence of quantum computing and regenerative robotics and artificial general intelligence, Chris for all that, the singularity is within sight, right? | ||
| As we said when I was in federal prison, you can see the door. | ||
| Why is Judy Shelton then, why are you not just a complete throwback to Jefferson and Hamilton and horse and buggy? | ||
| You continue to hammer the Fed and the Space Accord. | ||
| You talk about gold, gold bonds. | ||
| You want an audit. | ||
| Don't you come from the horse and buggy era in that really it's passed you by? | ||
| What they're talking about today with the digitization of money and artificial intelligence and all that, and everything we talk about is really about this barbaric metal that really harkens back to the dark ages of mankind, ma'am? | ||
| I think that talking about the role of gold in anchoring an international level monetary playing field is a very forward-looking, even sophisticated approach. | ||
| I might note that Secretary McBeson said that he was probably best labeled a gold bug during his currency trading days. | ||
| And it's funny. | ||
| I was preparing and looking at some notes. | ||
| I actually have an email from Alan Greenspan. | ||
| This was from July 2019. | ||
| I've had a great collegial relationship with him since 1990. | ||
| He'd read my book on the coming Soviet crash, and he had just come back from the Soviet Union, and he wanted me to come to DC to talk about it. | ||
| So then I met pretty regularly with him. | ||
| But when I was a new, newly named nominee for the Federal Reserve Board by President Trump, there was just a brutal column about me in the Washington Post. | ||
| So I sent it to Alan. | ||
| I emailed it. | ||
| And I started out by saying, I'm noting a certain almost hysterical antagonism toward the gold standard these days. | ||
| And then said, sound familiar? | ||
| That was the opening sentence of the paper that Alan Greenspan wrote called Gold and Economic Freedom. | ||
| A radical paper. | ||
| And he wrote that for Ayn Rand's compendium, Capitalism, the Unknown Ideal. | ||
| And he emailed right back, dear Judy, interesting times. | ||
| If gold is such a worthless metal, then why does the U.S. government and all other major governments hold so much of it in storage? | ||
| Unquote. | ||
| Best Allen. | ||
| So I've also known Paul Volcker since 1994, right up until he passed away. | ||
| We would always be together at the International Monetary Conference chaired by Robert Mundel, and I co-chaired it the last few years of Mundel's life. | ||
| He was the Nobel economics laureate, who was really the intellectual godfather under President Reagan for supply-side economics. | ||
| And he believed a stable dollar was just vital to assuring prosperity. | ||
| You needed the proper foundation for market forces to work, for supply and demand to deliver optimal economic performance because the money itself conveyed accurate price signals and it functioned as a store of value. | ||
| So I've grown a very thick skin. | ||
| And people who criticize gold are not the ones in the arena. | ||
| Paul Volcker always talked about the role of gold as the anchor for the Bretton Woods system. | ||
| He wrote in his book, Changing Fortunes, he always thought it was embarrassing that the U.S. walked away from the gold convertibility obligation. | ||
| And he was sure we were going to just restore the system, but at a higher valuation for gold. | ||
| So when I see people who have been in the arena and served for many, many years as the head of the most important central bank in the world, like Greenspan, like Volcker, and then to have such a good relationship with Mundell, who his supply-side approach is now being replicated and I think improved and made substantially stronger due to the bold leadership of President Trump. | ||
| I can laugh off people who think it's a better system to listen to the nuanced statement of 12 officials on the voting committee that defines, that dictates the rate of interest, and they meet eight times a year to decide the cost of loanable capital. | ||
| I mean, that's barbaric. | ||
| To me, that violates the norms of democratic governance. | ||
| So I would rather have, I think I would go with the thinking not just of central banks, which have been buying up gold like crazy, but all the people buying it at Costco. | ||
| I trust that aggregate wisdom much more than the rather insulated world of central bankers who think they can control the money supply. | ||
| You brought up all of this, these evolving electronic payment platforms. | ||
| How can you control the money supply with stable coins coming on? | ||
| There's unlimited potential for stable coins to serve as money. | ||
| You have the explosion of private credit. | ||
| The whole rationale for a Federal Reserve system was to prevent banking panics. | ||
| Well, now more than 50% of the loans to small and medium-sized businesses are coming from non-bank institutions, private credit. | ||
| How is the Fed examining that? | ||
| There's a regulatory arbitrage going on where the big banks just play footsie with the Fed. | ||
| They collect hefty interest rates for letting their money sit in cash balances at the Federal Reserve. | ||
| And then on the side, and we just heard Jamie Dimon talking about this, he says, I think it's dangerous as can be, but we want in on it. | ||
| So JPMorgan is now saying, we're going to get into this private credit business big time. | ||
| Those loans are not under the immediate regulatory oversight of the Federal Reserve. | ||
| And another very interesting movement, the growing number of states, including Florida and Texas, in the last two months have signed legislation to allow citizens to use gold and silver through debit cards and mobile applications as legal tender for everyday transactions. | ||
| And it was no mistake. | ||
| I mean, Greg Abbott, the governor of Texas, when he signed the legislation less than a month ago, he said this is to restore constitutional money. | ||
| And when Governor DeSantis signed it for Florida just a month before that, he said this is to restore economic freedom. | ||
| So you have an alternative to a dollar that is being deliberately debased. | ||
| I think this should be sending a signal to Washington. | ||
| And I think it is. | ||
| And I think our members of Congress are picking up on it, that the spell has been broken. | ||
| When the Fed allowed inflation to get to the point that it did, when the Fed's model predicted doom and gloom, and that didn't happen, when people started to realize that the way you fight inflation is by increasing output, increasing supply, not by trying to suppress demand and curtail growth. | ||
| What the Fed does, when government is overspending and engaged in classic stimulus deficit spending, and then the Fed becomes a disciplinarian and says, well, we'll run up interest rates to prevent inflation, all they're doing is empowering government at the expense of the private sector because government has to pay whatever the interest rate is decreed through treasury auctions. | ||
| But for entrepreneurs, for small business people who really need access to capital, when you set artificially high interest rates, which is what the Fed means when it says yes, it's restrictive, they mean it's restricting the amount of real growth that it is permitting because these people are now having to go elsewhere. | ||
| And because high cost of capital is a real barrier to people in the real economy, that's why it makes no sense to have fiscal policy working at odds with monetary policy to the benefit of empowering big government. | ||
| Are the BRICS totally wrong? | ||
| I mean, geopolitically, it's becoming anti-Western, but when they talk about the deterioration of the dollar and they're looking to do bilateral agreements that are backed in gold and they're talking about some sort of gold backed currency, and they deem their central banks to go buy gold at record rates, they understand something about the deterioration of the dollar, correct? | ||
| They have their reasons. | ||
| Of course, we don't want that to happen. | ||
| I like that President Trump put it out there that don't do that. | ||
| It's hard for them because we have the deepest financial markets, we have a lot going for us. | ||
| The U.S. has a legacy of having been the anchor country for the Bretton Woods system, which not only delivered productive growth all over the world, and you had fixed exchange rates, which meant trade was carried out on the basis of a unified money system, just like we had when Adam Smith wrote The Wealth of Nations. | ||
| You can't talk about comparative advantage if currency manipulation is obscuring the price signals and slanting to the advantage of countries that depreciate their currencies. | ||
| So the BRICS countries, they want to avoid sanctions. | ||
| They understand that the U.S. dollar is subject to what we're calling the inability, the fiscal insustainability of our path, which we keep saying we're going to deal with in the long run. | ||
| Well, I'm waiting for day one of the long run and trying to get down to a balanced budget. | ||
| You need sound finances to go with sound money. | ||
| But this is why I say the United States could just leap ahead, and it would be fairly simple if you had your Treasury Secretary. | ||
| And I say, I think Scott Bessant would be amenable to this because he is a student of monetary history, even a professor of monetary history. | ||
|
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In the Treasury, we've got to go to a break. | |
| I want to give the punchline on the other side. | ||
| Judy Shelton with an amazing hour here to walk us through finance, economics, central banking, currency, all of it. | ||
| Short commercial break. | ||
| Judy Shelton on the other side. | ||
|
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We're taking down the CCP. | |
| Spread the word all through Hong Kong. | ||
| We will fight till they're all gone. | ||
| We rejoice when there's no more. | ||
| Let's take down the CCP. | ||
| They have all life. | ||
| Here's your host, Stephen K. Bass. | ||
| Judy Shelton's with us, the author of Good is Gold. | ||
| It's now out. | ||
| You can get it at Amazon. | ||
| We're going to get all her coordinates here in a second. | ||
| Judy, go ahead and finish what you were saying about Scott Bessant. | ||
| I think as Treasury Secretary, he could authorize, with President Trump's approval, I believe he would love the idea, he could authorize the issuance next year on July 4th, 2026, of a 50-year Treasury bond convertible into gold at maturity at the option of the bond holder. | ||
| I think this would be something like a TIPS bond, Treasury inflation-protected security. | ||
| It can just be an offering put out there for investors. | ||
| I think the demand would be phenomenal. | ||
| I think this might involve verifying a walkthrough Fort Knox. | ||
| I think the gold is there, but let's make sure there are no encumbrances. | ||
| The 261 million ounces the U.S. owns, we carry it at a book value of $11 billion. | ||
| It's worth closer to $1 trillion. | ||
| You could take a windfall profit if you collateralize that gold, our family jewels. | ||
| We're in a family emergency. | ||
| You pledge those as specific collateral for these bonds. | ||
| And I think that starts to establish the Lodestar. | ||
| And what I think that we need to do, and what I would say to the Treasury Secretary and to members of Congress, particularly the Senate, who are looking at the Fed, the Fed is potentially facing an existential crisis when you have people like a constitutionalist Senator Mike Lee calling for end the Fed and Senator Rand Paul calling for an audit of the Fed. | ||
| I think the next Fed chair should be concentrating on eliminating the Fed's mechanism of paying interest on reserve balances. | ||
| It's paying 4.4% on $3.4 trillion sitting in cash. | ||
| 40% of the hundreds of billions it's paying is going to foreign-owned banks. | ||
| I think that's outrageous. | ||
| And the Fed should instead go back to the Paul Volcker way of open market operations, which means it should be shrinking its portfolio and selling off some of its own treasuries. | ||
| And I think as banks got off of that approach of just passively collecting money from the Fed, they would put that money into the treasury instruments and bring down those interest rates, which really would matter to the real economy. | ||
| And then my third piece of advice is have Treasury work with the Fed to issue that 50-year bond, because if you compare the rate of return on a bond that's convertible into gold, a dollar, denominated in dollars as good as gold, | ||
| and compare what the U.S. has to pay for that interest rate relative to fiat money, which denominates normal Treasury securities, that could come to serve not just as an information tool to the Fed about the aggregate expectations of the future purchasing power of the dollar relative to gold, which is a good surrogate for commodities and the real economy. | ||
| It could become a price rule in the future. | ||
| Instead of just having wholly discretionary authority of the 12 people who decide the rate of capital, maybe if there's a huge discrepancy, a big gap in the interest return on dollar-denominated instruments where it's as good as gold compared to fiat money, that would be a signal that the Fed had to take certain actions. | ||
| The people who worry most about Federal Reserve independence are the ones most resistant to any kind of a rule. | ||
| And I think that's very telling. | ||
| So those would be my recommendations. | ||
| Judy, where do people get your writings? | ||
| Where do they get the new book, Good as Gold, and where do they get all your writings, social media, all of it, ma'am? | ||
| Well, thanks for asking. | ||
| Amazon, Good is Gold, how to unleash the power of sound money. | ||
| And it details my approach, which is that we know central planning doesn't work. | ||
| So why do we have that at our central bank? | ||
| And then it gets into the very specifics of the proposal I just outlined. | ||
| And you can follow me on X at Judy Schell. | ||
| Judy, thank you for taking an hour on Saturday morning in July, in late July, to inform our audience. | ||
| I'm telling you, people loved it, and we'll make sure we get you back on here and talk about all these developments as we push forward for a restructuring of the Federal Reserve, ma'am. | ||
| It was to be with you, Steve. | ||
| Thank you for inviting me. | ||
| Thank you, ma'am. | ||
| Wow. | ||
| This is what they don't want working class people in the middle class to understand. | ||
| They don't want you to understand really money, currency, the way the system works. | ||
| If you're going to make changes to the system, you have to understand the system and how it works so then you can take it apart. | ||
| President Trump, and this is why this huge fight you've had for years and years and years to return President Trump to the Oval Office is so important because you bring in people like Russ Vogt. | ||
| You bring in people like Dr. Peter Navarro. | ||
| You bring in people like Scott Besant, right? | ||
| These people that are taking a fundamental and serious look at the system and how to either take it apart and rebuild it so it maximizes freedom for the American people and the benefit of American citizens. | ||
| And what Judy said right there, we'll get more into that in the days and weeks ahead about paying interest on these bank reserves, particularly 50% of it going to foreign banks. | ||
| The rot inside the system is amazing, but the resistance to change, and this is one of the things that's so we have to stick the landing on what Tulsi Gabbard has put before us. | ||
| We're going to get more into that in the second hour, which is so vitally, vitally important. | ||
| We're coming up on the second hour. | ||
| We're going to go and shift our focus a little bit, some of the same problems, but we're going to go and follow President Trump in Scotland and what the Trump revolution means there. | ||
| On Monday, we're going to spend a lot of time on this redistricting situation. | ||
| It's now spread to Florida. | ||
| Governor Santa said, hey, I think we've got five seats here that we can redistrict that have to because of demographic shifts. | ||
| And now we're calling for a mid-decade audit, a mid-decade census. | ||
| Audit, we've got to do the audit in the Federal Reserve right away. | ||
| Mid-decade census. | ||
| Patriot Mobile, you know how good they are and how they back your causes. | ||
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| Make the change. | ||
| PatriotMobile.com slash bandit. | ||
| They give you a free month of service or 972 Patriot. | ||
| Glenn Stury and the team. | ||
| We're going to have a bunch of Texans on Monday to talk about this. | ||
| Whither thou, Quo Vadis, Texas. | ||
| How about that? | ||
| Whither thou goest? | ||
| Also, the great people at Birch Goldwood got so much going on, Birch. | ||
|
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We're working on the eighth and ninth installment of the end of the dollar empire. | |
| It's been so popular. | ||
| But take your phone out now and just text Bannon, B-A-N-N-O-N at 989898. | ||
| Get the ultimate guide. | ||
| It's free for investing in gold and precious metals in the age of Trump. | ||
| Judy Shelton just talked to you about a stable currency. | ||
| Learn about it. |
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