Episode 2105： End Of Abundance’ For The West ⧸ Ukraine Returns To Normal And Russian Economy Thrives; Slow Economic Growth As Biden Plans To Bail Out Students From Debt
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Summary
Stephen K. Bannon and Christine Romans talk about the latest in the Coronavirus epidemic and the impact it could have on the global economy. They also discuss the impact of the Brexit vote and the implications for the French election.
Transcript
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Well, the virus has now killed more than 100 people in China, and new cases have been confirmed
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around the world. So you don't want to frighten the American public. France and South Korea have
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also got evacuation plans. But you need to prepare for and assume. Broadly warning Americans to avoid
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all non-essential travel to China. That this is going to be a real serious problem. France,
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Australia, Canada, the U.S., Singapore, Cambodia, Vietnam, the list goes on. Health officials are
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investigating more than 100 possible cases in the U.S. Germany, a man has contracted the virus.
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The epidemic is a demon, and we cannot let this demon hide. Japan, where a bus driver contracted
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the virus. Coronavirus has killed more than 100 people there and infected more than 4,500.
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We have to prepare for the worst, always, because if you don't, and the worst happens.
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War Room. Pandemic. Here's your host, Stephen K. Bannon.
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What we are living through is a time of great upheaval.
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Firstly, because we are witnessing, and not just since this summer, but over the past few years,
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the end of what we might have seen as abundance. And for those who enjoyed it, it is also the end
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of a carefree time. Our freedom, the liberty to which we have grown accustomed to in our lives,
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has a price. And sometimes, when we have to defend it, we have to make certain sacrifices
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In the CNN, very important news for the U.S. economy. The nation's gross domestic product,
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that just means how much the economy grew or shrank. Well, it declined. Last than previously
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thought in the second quarter of this year, it was revised up from negative 0.9 percent to negative
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0.6 percent. That might not sound like much, but it is better than expected. It does still show,
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CNN Chief Business Correspondent Christine Romans joins us now with more. And we've often
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seen revisions like this with jobs figures, sometimes in both directions, sometimes in
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a positive direction. What's the significance of the revision here?
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It means the economy is less lousy in the second quarter than we thought. And in fact,
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consumer spending and corporate profits were stronger. And that is an underpinning here
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of the U.S. economy. When you look at quarter by quarter by quarter, you can see two quarters in
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a row of a shrinking U.S. economy, but shrinking much less in the second quarter than in the first
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quarter. And, you know, some of these other more recent, this is rearview mirror looking,
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right? This is the second quarter. We're already into the third quarter. And some of the early data
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for the third quarter, these monthly reports are showing a pretty strong picture for the consumer.
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So the third quarter is quite likely going to be positive. Of course, as you know, when you have two
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negative quarters, that begins the discussion about whether or not you're in a recession.
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And guys, it's just not an easy call. There are so many conflicting, conflicting figures out there.
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I mean, you look at jobless claims, for example.
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It's not conflicting. Put the pom-poms down. I can't take any more of the absurdity. Let me give
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you the signal there. By the way, welcome. It's Thursday, August, the 25th of August year of 2022.
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2022. You're in the war room. We're going to do economics, capital markets, and geopolitics this
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morning, because this is the tidal wave of reality that's about to wash over you in the audience. And
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this is going to drive very much what happens in November this year and then what happens afterwards.
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The signal there was Macron. Remember, Macron just won a victory against the populist nationalist
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front national or national rally, whatever they call themselves today. But the populist,
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the group on the right, not conservatives, but far the right than conservatives. And then he lost,
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got a sweeping, crushing loss on what essentially their parliamentary vote afterwards. It kind of
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put restrictions on him. But when he was running, he wasn't talking about the end of abundance,
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the end of the sacrifices that have to be made. It was a totally different happy talk story.
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And so now the leaders of these various nations, as they're all about to get turfed out,
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are all singing a very different tune. But here in the United States, where you have a slight change
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to another horrific quarter, not growth, not 2% growth, not 3% growth, not 2.5% growth,
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but almost one point negative. And that's including everything, not even getting under the hood.
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And CNN has the gall to put on a cheerleader with pom-poms again. And this has nothing to do with
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one's gender, because Jim Cramer's got is the big, he's the head cheerleader with the biggest set of
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pom-poms to go in there and say, Oh, yeah, it's not that bad. It's really strong. We got all kinds of
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strong. We're in a depression with working class people. And Biden yesterday had the audacity,
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the audacity to pay off. And Larry Tribe, that scumbag who almost came on the Supreme Court,
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except we defeated Hillary Clinton. Larry Tribe sitting there, large tribe sitting there
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talking about how great it is that that the Harvard students, all his Harvard students are
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getting their debt paid off by working class Americans, another payoff of this illegitimate
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Biden regime. So we got we're going to do the first hour on a lot of economics, understand exactly
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where we are in the country. So you don't have to listen to the pablum that's spoon fed to the to
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what they they treat their audience like morons want to go first, though. You know, you talk about
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in France, he's, you know, Macron sitting there and saying it's the end of the era of abundance.
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And so now we're entering an era of scarcity. The reason we have an era of scarcity is I keep saying
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this is not the second law of thermodynamics. This is directly related. This is directly related
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to human action and human policy, right? It's directly related to human action and human policy.
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So. Wow. Breaking news. MTG just got swatted again last night. Is that correct? OK, we're going to get
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maybe we try to track down MTG. Let's let's see if we can't. Yeah, let's let's see if we can't. It's up
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on our Twitter. Let's put it up there. Breaking news. And let's get let's get MTG. See, we can't
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track her down. Get her on here. I digress. Let me get back to my rant. This era of scarcity is all
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brought up about because of these absurd policies of the global elites that are off the back of the
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working class. I want to go to, by the way, one place in the world where there is abundance
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is Ukraine. Why? Because your tax dollars are getting shoveled over there every second of the
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day. Ben Harnwell, compare and contrast where we are with Ukraine, the rest of Europe in the world's
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economy, sir. Good morning, Steve. Well, the news really today is in the juxtapositions between two
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competing realities. Let's go straight to Germany. Denver, if I can have the article,
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Germany approves energy saving measures for winter. This is now the start of the digging in and the
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preparing in the same way that the two sides along their frontier in Ukraine are now digging in,
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embedding themselves in now for the stalemate in exactly the same way. The European capitals are
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digging in as well to steal their own people for the sacrifices that they're going to make.
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Now, Macron said, yes, he did say that France is now facing the end of abundance. Where is he now?
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He's in Algeria. He's gone to Algeria for three days. Whenever there is a looming domestic,
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take this to the bank, whenever there is a looming crisis that you have created in your own country,
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that political leader is going to go abroad and pretend to be a statesman on the world stage.
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That's where Macron is now, not resolving the issues in France. He's in Algeria. Hold on to that
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thought. I'm going to come back to it. Right. So in Germany right now, the tragic situation there
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is that from September, public buildings are going to have their heating limited to a maximum of 19
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degrees, turned off completely in entrances, corridors and foyers. Public monuments that have
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been lit up until now and no longer be lit. And businesses could be banned from keeping their
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shops illuminated at night. Also in the list of things that might be banned are the public
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swimming pool heatings. And here, rather shocking, is that in the world, in Europe's most developed
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economy, that the country will give coal and oil cargo priority over passenger travel on railways,
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meaning passengers will have to wait. So that is the end of abundance in Germany. Let us have a look
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now at UK. Because the news that I think is astonishing, Steve, is that a nursery school is now telling
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children and staff that they will have to wear more clothes to help cut heating costs as businesses
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are struggling with soaring energy bills. We can't afford to have the heating on all day because it
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will ruin us, says one nursery owner. And get this, Steve, the British Chamber of Commerce has called on the
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government for COVID-19-style emergency grants to help firms. So what the system told us was an
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unprecedented one-off to cope with the pandemic. Of course, we all knew it wasn't. This is how the
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system takes us from a failing economy to Venezuela. They're now going to take that precedent
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and repeat it. What's the same with COVID? It's a synthetic man-made crisis with a set-to-fail
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solution. OK, hold on to the UK. Where is Boris Johnson right now? We saw the rubbish piling up on the
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streets in Edinburgh. You'd think this might be a priority for a nation that has some degree of pride
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on the world stage. Boris Johnson is where we expect him to be when there's a crisis. He's in
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Kyiv, with the photos of him down on the pavement, polishing off his plaque that they've embedded into
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the floor, like the Hollywood Boulevard. And Boris Johnson has, in giving £54 million to President
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Zelensky and his oligarchs, has called on Britons to bear higher gas bills as Ukrainians are paying
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in blood. He said, we also know that if we're paying in our energy bills for the evils of Vladimir
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Putin, the people of Ukraine are paying their blood. And what he didn't say, of course, was that
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it was us, the West, that led Ukraine down the primrose path to its own destruction. And he didn't
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say that Ukraine would have folded within three or four days. The reason it has undergone all this
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suffering is because we've been arming them to keep them in a fight that they cannot. Those things
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didn't make it into his remarks. Now, let us have a look. Finally, finally, because we spoke
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yesterday on the show, Steve, about Ukraine. We spoke, we reminded the war room posse how we'd been
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covering over recent months the Ukrainians at the beach, the open air rock concerts in Mariupol.
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We spoke about the opera, the theatre and the ballet that's now retaken life in the cultural
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capital in Kiev. We spoke a couple of days ago about how the soccer, the football league
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just kicked off and normalcy is returning to Kiev. No end of, no end of in Kiev. Where else
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is there no end of abundance? Well, we have the Economist article here to say that it's also
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in Russia. Why the Russian economy keeps beating expectations. That's their headline. And I was
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particularly interested that the Economist analysis of data from a wide variety of sources suggests
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that Russia's economy is doing better than even the most upbeat forecast predicted. That's a direct
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quote from the article, as sales of hydrocarbons have fuelled a record current account surplus.
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And I just add on to that, the concluding words of this article, sanctions have had a limited impact
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on Russian oil output since the invasion. Russia has sold in the region of 85 billion worth of fossil
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fuels to the EU. Now, this might be a surprise to the Economist, but it's not going to be a surprise
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to the war in posse because we've been briefed right from the beginning by you, Steve Cortez,
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Dr. Navarro. You said right at the beginning, in long expositions, exactly how this was going to
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unfold. And it is unfolding like that to the very letter. I will close, Steve, with this article
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in the Daily Telegraph. Putin might just win his giant bet against a fractured West. European leaders
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now face the unenviable task of persuading their voters that the economic distress they will suffer
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is a price worth paying. And there we go. And I'll just leave with this extract. Putin looks set
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to win his bet against the fractured West. His calculation on swallowing up Ukraine without NATO
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intervention, sufficient to stop him, was based on at least some realities. Now, news for the Daily
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Telegraph, I can only repeat, we've been on this right from the beginning, the six months, Steve.
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Ben, I just want to ask one last thing before we let you go, is that have there been any more
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commitments over the last 24 hours from European nations to shovel more money in there? Any public
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announcements, any more commitments? And the 57 million that's been pledged by Boris Johnson,
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but we're not, we're not an EU, we're not an EU country. Some people would say that UK's,
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no, nothing, nothing, nothing. Ben Harnwell, what's your social media?
00:14:12.820
I'm on Getter Steve, my surname at Harnwell, and I'll be there pushing out the developments as they break.
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Okay, we're gonna go to break. Steve Cortez is gonna be there. I want to note that seven
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more counties in the sheriffs and counties in Texas declared an invasion on the southern border.
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Take that up to 17. 17 counties in Texas, invasion of the southern border. We just shipped
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three billion dollars over the Ukraine to protect their Russian-speaking eastern border.
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Short commercial break. Be back in the war room. Steve Cortez,
00:14:43.220
Dave Brat, hopefully Dave Walsh, all of it in a moment.
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00:15:05.300
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The epidemic is a demon and we cannot let this demon hide.
00:16:31.380
War Room Pandemic. Here's your host, Stephen K. Bannon.
00:16:38.740
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I want to go to, so Cortez, I don't even know where to start, but let's start. I want to start,
00:17:22.820
I want to go back to the mindless, ridiculous CNN. Here's the thing, too. You've got to understand
00:17:29.580
something for the audience. We have enough respect for you that we will actually do the work between
00:17:35.260
shows and make sure that you have a real understanding of as close to what the math says
00:17:41.040
about the economy. Not, they have no respect for their audience. They just shovel crap at them all
00:17:47.060
the time. And here's the thing, when people say, I watch CNN, what do you, and we're, hey, you are 10
00:17:52.140
times better briefed, as we say, than the guys on CNN, because all they do is get mindless. And I mean,
00:17:57.680
mindless, not interesting crap all day long, like, like MSNBC. There's no reality to any of it. It's all
00:18:03.300
performative. But I got to start with Ukraine, because, you know, the global elites have all
00:18:09.100
focused on Ukraine. And Cortez, we call this, this is actually more humiliating and embarrassing.
00:18:15.100
But the one thing it has brought up on the energy side is how the elites in these countries
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kind of thought they could pull this off. And now it's all cratering around them. And now they're
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running, and you think France is bad? The German numbers are numbers that I didn't think were
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possible. I didn't think were possible. And you're going, they're going to have a reckoning
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by the voters. And hey, if the voters can't vote them out, they're going to overthrow them,
00:18:42.540
because this thing is just not going to, I mean, this winter is going to be a bitter cold with
00:18:47.360
incredibly high food prices. And even where they got energy, it's going to, they're going to be
00:18:52.680
wrapped up, they're going to be living like back in the, in the Middle Ages, Steve Cortez,
00:18:58.320
it's a total regression. And listen, winter is coming literally and metaphorically,
00:19:02.600
or a lot of places, including the United States, it's going to be much worse, of course, for Europe,
00:19:06.420
but it's pretty, it's going to be pretty bad here as well. So let's not, let's not get too cocky
00:19:10.880
about the American situation when we know that one in six American households right now cannot pay
00:19:15.740
as Bloomberg reported and not pay their utility bills, they called it Bloomberg did a tsunami of
00:19:21.700
shutoffs that is looming here in the United States. But regarding Europe, look, at least France has
00:19:27.080
nuclear power. So it's not quite as vulnerable as Germany is Germany, let's face it, they effectively
00:19:32.160
made a snotty Swedish teenager, their Secretary of Energy, and they are going to pay a very,
00:19:38.860
very bitter price for that policy combined with the massive escalation of the war in Ukraine,
00:19:43.800
what should be a regional battle, which has been turned into a global conflagration by the leaders
00:19:49.180
of NATO as well as Joe Biden. You know, Macron, by the way, Steve, I want to make this point,
00:19:52.920
Macron, when he said that the it's the end of abundance, I really thought to myself as somebody
00:19:57.080
who for a living does political messaging. If you work for Macron, how do you message that? I mean,
00:20:01.920
how do you possibly say, oh, we're going to promise you the end of abundance? It's like,
00:20:06.040
instead of a chicken in every pot, we're going to promise you a parakeet in every pot. That's
00:20:10.640
essentially what he's saying. But here's the thing, the powerful and the oligarchs are going to thrive
00:20:16.380
as never before. You know, as Ben Harnwell was saying, I'll tell you one place in Europe
00:20:20.340
that's going to do extremely well, and if anything, it's going to do even better than it already has
00:20:24.780
done. And that's Monaco. Because believe me, with $10 natural gas and with nearly $100 a barrel
00:20:30.740
crude oil, the oligarchs of Ukraine, the oligarchs of Russia, the princes of the Middle East,
00:20:36.320
they're all doing just fine. And believe me, they will be having a grand time in Monaco while a few
00:20:41.760
hundred miles to the north. Regular folks, working class people are freezing in Germany.
00:20:46.620
No, no. And by the way, this is why we left these guys behind, because Monaco is their big
00:20:50.780
tax haven. They're all going to be down. All the elites are going to be down there,
00:20:53.180
whining and done and loving each other. I mean, it's going to be, you know, devil catch the
00:20:57.280
hindmost. Here's the thing. Let's go back to political messaging for a second, because you're
00:21:00.600
going to see this in the Biden regime. Macron just ran. He had an existential threat
00:21:07.400
with Le Pen, right? And listen, I think if Zemmour had been a little more focused and had had the
00:21:14.780
Ukraine situation come up, it had been Zemmour versus Macron. I think Zemmour had been the
00:21:18.460
president. Let me just put it out there and say it. It's because as much as I love Le Pen,
00:21:23.940
maybe she's not the best on a national scale to go on him after him at the economics. But remember,
00:21:29.640
in his campaign, this is in May. This is less than 90 days ago. I don't remember ever
00:21:35.920
Macron sitting up there and telling the people of France about the end of abundance, right? I don't
00:21:41.460
remember him telling me, you got to. Oh, we're going to have to make. And, you know, he's not going
00:21:45.760
around to the Riviera. He's not going down to all the landed aristocracy. He's not going to all the
00:21:52.040
elites in French society that the owners of these businesses and all the luxury good businesses.
00:21:58.140
He's not telling them you got to you got to you got to hunker down. He's basically telling the folks,
00:22:02.700
yeah, you know, that's the end of abundance. Boom. End of abundance. He was just elected less
00:22:07.120
than 90 days ago. Right. Where was all this? This shows you how blatant they're just in your grill.
00:22:12.840
Right. You know why? Yeah. And then hold on this about this. This is why. And the Germans are the
00:22:18.180
worst. If you're going to sit there and take it, they're going to continue to run the tables on you.
00:22:22.340
Your country's fallen off a cliff and you're just sitting there with the same, you know,
00:22:27.080
repeating the same nonsense. You you deserve what you get. OK, here in this country, I'm proud to say
00:22:36.260
we have a populist nationalist revolt. Did you see the school boards yesterday? Throw them out. By the
00:22:41.180
way, NBC News has a massive story. We're going to get to the second thing that how the Patriot Mobile,
00:22:45.980
the Christian nationalist little, you know, cellular company promoted by War Room has now swept all the
00:22:53.000
school boards in Texas. You have a populist nationalist revolt and Europe. It's time for
00:22:58.320
you to arise. You can do it at the ballot box. You're in a parliamentary session. Throw these
00:23:02.840
bums out. It's couldn't be clearer. They're the scam. They're running on you. Steve Cortez.
00:23:08.900
Well, and, you know, listen, Steve, to your point, here's the thing. If Europe chooses not to,
00:23:13.720
if the citizens of Europe choose to suffer this way, these kinds of self-inflicted wounds, guess what?
00:23:18.180
Not our problem. At least it doesn't have to be on our problem. Unfortunately, Joe Biden has made it
00:23:23.940
our problem by getting us so massively involved in the escalation of Ukraine. And you're exactly right
00:23:29.600
when you say, you know, where there's plenty of abundance among the oligarchs of Ukraine,
00:23:34.180
among the pals of Zelensky. And, you know, Steve, I like to put these numbers in context because I
00:23:38.240
think a lot of folks that they just hear, OK, we're just saying a billion dollars every few days,
00:23:41.740
three billion dollars every few days. Ukraine, you know, what does it mean? Let's give a comparison.
00:23:45.640
For example, we're spending right now at a clip of over 10 billion dollars per month. So if this
00:23:50.600
continues, we're going to spend north of 100 billion this year in Ukraine. But right now,
00:23:55.280
the biggest package was 40 billion dollars, that single boondoggle mountain of money that we borrowed
00:24:00.240
to send to Ukraine. For comparison purposes, Steve, for the American audience here, that is the annual
00:24:05.000
budget of the state of Illinois. So think about that. Think about Illinois is a very large,
00:24:10.140
successful state for the most part, right? A busy, big state. Everything that Illinois does,
00:24:14.740
the roads, the schools, the prisons, the courts, the health care, everything it does,
00:24:18.520
that's the entire budget of Illinois. We just sent that in just one package over to Ukraine.
00:24:23.880
It is a mountain of money to escalate a crisis in which we have no direct national security interest
00:24:29.880
and a crisis which is making our pre-existing inflation crisis. We already had an inflation
00:24:34.420
crisis because of Joe Biden, but it's making it massively worse. And what's that doing to regular
00:24:38.680
Americans? Again, to bring it home here, as we talked about yesterday, 5.4 million Americans,
00:24:44.440
according to a survey from the Census Bureau of the United States, 5.4 million Americans who are
00:24:49.420
already behind on their rent or their mortgage, they believe they are going to be kicked out of
00:24:53.820
their homes imminently, that they are going to be evicted or foreclosed upon in the next two months.
00:24:58.760
Why? Because of the soaring costs in their life, particularly energy, electricity of 15% year
00:25:04.700
over year in July, and because real wages are crashing in this country. 16 months in a row of
00:25:11.480
declining real wages. And to get back to that gaslighting attempt by CNN, Steve, here's the
00:25:15.740
thing. Sometimes corporate media, let's be honest, sometimes they're successful in gaslighting the
00:25:20.580
American people. Sometimes they can successfully spin the American people. I think they did it at
00:25:24.880
the beginning of the Ukraine crisis. Thankfully, there were people like you who were very bold about
00:25:29.340
saying, wait a second, this is not our fight. But sometimes they can be successful. But they cannot
00:25:34.640
succeed at fooling people about their own personal economic reality. You simply can't spin that.
00:25:41.600
Everybody knows their bank account. Regular Americans know when they put the credit card
00:25:45.920
in the gas pump, they are cringing. It's a moment of anxiety for regular Americans. They know their
00:25:51.020
credit card balances are exploding. $46 billion in credit debt added in the second quarter of this
00:25:57.600
year, the most in 20 years. So they can't be spun on these kinds of kitchen table issues. That's the
00:26:03.820
reality. Now here, there's also a political opportunity, right, within this crisis. There
00:26:07.220
always is. Political opportunity for the America First movement, for patriotic populism to step in
00:26:11.900
and say, we have answers to solve this. An America First foreign policy, onshoring.
00:26:17.580
Yeah, but if you have, remember, it's Republican votes that got us here. The collaborationist
00:26:22.580
Republican, Mitch McConnell Republican. And no offense to President Trump, I understand you're saying
00:26:26.780
he's unacceptable now, he should step down now. But hey, no offense, brother, your corrupt,
00:26:32.520
crooked advisors got you to endorse all of his candidates, essentially. So it's kind of hard to
00:26:39.800
say we got to get rid of him. Now he's got the votes. Crapo in Idaho, Moran in Kansas,
00:26:45.880
Boozman in Arkansas. We had great potential candidates to go against him, but you endorsed
00:26:50.480
Mitch's closest buddies. It's kind of hard to say now. I want to go back to a couple of things.
00:26:54.480
Rasmussen poll, go to my Getter account. I've got the Rasmussen poll up. 85% of the American people,
00:26:59.940
85%. 85% of the American people don't think the earth is round. I mean, you get, so you've got,
00:27:06.540
you can't get consensus 85% or anything. 85% think inflation is a concern. 50, I think 9%
00:27:13.200
or 56% think it is very big concern. Okay. So inflation is at the top and you talk about the
00:27:20.780
credit card right before we go to break. As you said, you can't do a direct comparison,
00:27:24.100
but we've added $46 billion. When you're putting that card in the, in the gas pump and you're
00:27:31.540
pumping $46 billion added to credit cards with rates about to explode. And that is, that's one
00:27:39.060
package that we sent to the, to the Ukraine. Cortez, hang on short break. We're going to come
00:27:44.280
back a lot more economics yet too. And by the way, Jerome Powell's last stand, not at Custer's
00:27:50.480
national battlefield, but pretty close out in Jackson Hole, Wyoming. We're going to talk
00:27:56.640
The games you want to play. Bring it on and now we'll fight to the end. Just watch and see.
00:28:03.600
It's all started. Everything's begun. And you are over. Cause we're taking down the CCP.
00:28:14.300
Spread the word all through Hong Kong. We will fight till they're all gone.
00:28:18.600
We rejoice when there's no more. Let's take down the CCP.
00:28:23.880
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The epidemic is a demon and we cannot let this demon hide.
00:29:54.660
War Room. Pandemic. Here's your host, Stephen K. Bannon.
00:29:59.140
Okay, welcome back. We're about to go to Steve Cortez. By the way, we're going to have just for
00:30:04.820
time because we got a lot of things that are popping on the show. We're going to have Dave
00:30:09.940
Walsh on this evening on the afternoon show to talk about energy. He's got a lot to walk through
00:30:15.020
about how your life's not going to get better, okay, because of policies that are driven by this
00:30:20.320
illegitimate regime and their buddies at the World Economic Forum. Also, MTG. We're trying to get MTG at
00:30:27.500
the top of the hour to talk about the second swatting in two nights at her house. So, I want
00:30:34.340
to go back to Cortez. First of all, talk to me about, you've got a lot to go through, but before
00:30:39.720
you take it over and start going through your charts and your analysis, I just want to go back to the
00:30:44.260
CNN. Why is that just happy talk and why is that spin, in particular the way they presented it, sir?
00:30:50.300
What's the reality of the economy versus what they present?
00:30:53.780
Right. Well, the reality is that we're in a recession and that point really is not debatable
00:30:57.440
anymore. I think the only thing that is debatable is the extent of the recession. And I would point
00:31:01.880
to not just the GDP numbers, but the PMI numbers that we've talked about. Purchasing managers index,
00:31:06.800
we got the services sector number out this week. It was at 44. Expectations were 49. That would
00:31:12.100
have been bad enough because anything below 50 is recession territory. That's contraction. It
00:31:16.940
massively disappointed at the downside at 44. I would also point out, by the way, again, not to get
00:31:21.860
cocky versus Europe. Our PMI number is the worst in the developed world. So the world is doing poorly,
00:31:28.040
but the United States is doing the worst among pure countries. That is a sad reality right now.
00:31:33.220
Hang on. Hang on. Every time I hear these guys, Jim Cramer and all these guys, they talk about,
00:31:38.700
hey, we're doing much better than the rest of the world. How do they, how do they, how do they,
00:31:43.000
they say this all the time, right? As a support for Biden. How do they get away with saying that?
00:31:47.780
Yeah. Well, because it's pure narrative and it's propaganda. And unfortunately,
00:31:52.580
those business networks, which formerly used to do some pretty good work and used to try to inform
00:31:56.500
investors, they've long ago given up that task and they prioritize propaganda. Look,
00:32:01.080
on both the inflation side, we have nearly the worst inflation in the industrial world. Really,
00:32:05.560
the only place worse is the UK because of how terrible Boris Johnson is. So nearly the worst inflation
00:32:11.020
and the worst, not nearly the worst, the worst PMI numbers in the industrial world. That is the
00:32:16.340
reality right now. So we are worst in show when it comes to the economy on both sides of the
00:32:21.740
equation, prices and growth. That is the stagflationary cycle, the quagmire that Joe
00:32:27.120
Biden has brought us into. By the way, let me show you a chart form here too, because again,
00:32:29.820
we like data and evidence, not just sloganeering on war room. So let's show chart number one,
00:32:34.440
which is Nordstrom. Nordstrom has absolutely fallen apart. So I was talking about the problems that
00:32:38.720
middle and lower income people are having, right? One in six households can't pay their utility bill,
00:32:42.880
the most basic of all bills that every household confronts in this country. But it's getting to
00:32:48.820
the higher end now too, because Nordstrom in general has a middle to higher income customer.
00:32:54.320
Nordstrom yesterday said, we are cutting our guidance for the rest of the year. The stock was
00:32:58.220
down almost 20% in a day. 20% is a bear market. A bear market happened in a day. But Nordstrom has been
00:33:04.260
getting crushed for months and months. That chart shows Nordstrom since last November, since roughly the
00:33:09.600
Thanksgiving highs, when a lot of stocks, particularly anything that's consumer facing,
00:33:13.840
and CNN actually mentioned that the consumer is strong. Well, tell that to Nordstrom, that stock
00:33:18.860
has been cut in half. Now, in case anyone out there says, well, maybe it's a Nordstrom company peculiar
00:33:24.100
problem. No, it's not, because these similar warnings and similar looking charts abound. For example,
00:33:29.740
Kohl's just issued a warning. Macy's just issued a similar warning. Months ago, we talked about the
00:33:35.440
problems for Target and Walmart. They felt it first because middle and lower income people
00:33:39.240
were the first impacted. But my point is now it's spreading to the middle and even the higher end. So
00:33:44.280
the damage to the American economy is widespread. And look, it's not for without evidence, without
00:33:50.680
cause that the American people are incredibly despondent. According to University of Michigan
00:33:55.060
Consumer Sentiment Survey, we are at the worst levels since the 1950s. I mean, think of all that
00:34:00.200
America has been through, all the crises that we have endured geopolitical and economic. Confidence
00:34:06.360
has never been lower than it is right now under Joe Biden. That is not a circumstance or coincidence.
00:34:13.580
That is because of the actual reality of what Americans are dealing with every day in their
00:34:18.620
lives. And we see it by every important metric out there. And I would also point out, because I want
00:34:23.740
to show this to Steve. Here's what makes me even more worried about how bad the situation is here at
00:34:28.040
home, is the fact that China is imploding concurrently. So we have America and China
00:34:32.960
careening into the economic ditch at the exact same time, the two biggest economies in the world.
00:34:38.180
If we show chart number two, this is the dollar versus the yuan versus the Chinese currency. And that
00:34:43.880
chart goes back a year and a half. So as that graph is rising, the dollar is rising in value, the yuan
00:34:50.040
is falling. The Chinese yuan right now is at almost a two-year low. Why? Because property markets in
00:34:56.840
China are falling apart. They have an all-out real estate crisis. Now, some folks out there would
00:35:01.980
say, hey, fine, China's our enemy. We want them to do poorly. And I understand that rationale.
00:35:06.280
But here's the reality. Economically, Steve, we are so intertwined with China right now that when
00:35:11.360
you have the number one and number two economies in the world, both careening lower, both in
00:35:16.960
recessionary territory on that trajectory, it's incredibly dangerous for the world. And it hasn't
00:35:21.880
happened yet, by the way. Here's the thing. We don't frankly know what the results will be,
00:35:25.340
because since China emerged as an economic force a little over 20 years ago, when the
00:35:30.380
bipartisan cabal of Washington, D.C., Clinton and Bush welcomed China, welcomed the Chinese
00:35:35.600
Communist Party into the World Trade Organization on terms that were incredibly generous to the
00:35:40.300
Chinese communists, ever since then, we have not had China in recession. So even in 08 and 09,
00:35:46.620
when the United States had the Great Recession and the credit crisis, China powered through. Now,
00:35:51.420
I think a lot of that was through accounting tricks, through nonsense and dishonest bookkeeping and
00:35:56.140
massive borrowing. So a lot of it wasn't real. But the point is, you had China powering through.
00:36:00.860
You don't any longer. Now you have the two biggest economies in the world in concert,
00:36:05.940
absolutely crashing. And the consequences could be extremely dire. It could actually add to and
00:36:10.980
accelerate what is already domestically a terrible situation in the United States.
00:36:14.980
Okay. I want to, by the way, New York Times today has a massive story you think would be ripped from
00:36:21.560
the pages. I think they've been watching the seminars over at the Committee on the Present
00:36:25.200
Danger. By the way, there's another seminar today at one o'clock. You've got to go to these seminars.
00:36:29.000
They're all free. They're all online. They're unbelievable. They've got a massive piece about how China is
00:36:34.060
going to choke down Taiwan, right? So these are all, these dots are all connected. The Chinese announced
00:36:41.520
overnight, and I don't want to say they're reading out of Lords of Easy Money, but they're reading out
00:36:45.340
of Lords of Easy. They announced overnight what a trillion yuan infusion. They're going back to the
00:36:53.000
old Greenspan Federal Reserve playbook. Just flood the zone with massive stimulus and hope you can keep
00:37:00.660
the devil away from the door, that those tanks are going to be rolled out in front of the Bank of
00:37:04.540
China branches in Henan province again. That's the new Tiananmen Square. The new Tiananmen Square is not,
00:37:09.960
that was politics. This is Lao Beijing wants their cash, right? So the Chinese, in a total freefall,
00:37:16.860
are, they are revving up the printing presses. Now, they're clearly not the prime reserve currency,
00:37:22.020
and it's a problem. The other thing about the interconnectivity, Larry Fink and that crowd on Wall
00:37:26.580
Street has got us, they've got the pension funds so exposed over there, right? Don't be belly laughing
00:37:33.600
about what's happening to the China. First off, Lao Beijing is getting wiped out. They're our allies.
00:37:37.520
The CCP, the crooks over there running are going to do just fine if they don't get,
00:37:42.900
they don't get overthrown. But man, we're up to our neck. The pension funds in our country are up to
00:37:49.220
their neck in this thing, Steve Cortez. And that's what I say. Exactly. The last stand of POW is going
00:37:55.000
to be out in Jackson Hole. But give me, talk to me about what the Chinese have done overnight and
00:37:59.580
hitting, they took the big red panic button and hit it hard and say, hey, we need just keep it
00:38:05.460
cranking up. This is all about buying time. Buy us time to figure this thing out. Steve Cortez.
00:38:11.380
No, and listen, clearly the junta in Beijing is extremely aware of just how intense and dangerous
00:38:17.260
this situation is for them. They have effectively bought the acquiescence of the Chinese people,
00:38:22.200
right? The promise, effectively, the bargain, the unstated bargain with the Chinese people has been,
00:38:27.000
you will have no rights, you will have no freedom, you'll have no individualism,
00:38:30.060
but we're going to guarantee you growth. And that's what the Chinese, the CCP has operated by on that
00:38:35.020
principle, effectively, on that unstated bargain for the last 20 plus years. And so when they can
00:38:40.560
no longer deliver growth, they know they lose legitimacy from the Chinese people. So it's an
00:38:45.520
incredibly dangerous situation. And you're right, of course, to bring the Taiwan aspect into it,
00:38:49.880
because we know that despotic regimes, when they get in trouble at home, very often try to lash out
00:38:55.580
external enemies or try to cause national security crises so that they can get a rally around the
00:38:59.940
flag effect. And so these are such dangerous times. And to connect us back to our situation in
00:39:05.540
the United States, you couldn't think of a worse time to have a doddering and corrupt commander in
00:39:11.900
chief of the United States than right now. The world is in such a dangerous place, I would argue
00:39:17.500
more dangerous than any time since just before World War II. The world has probably never from a
00:39:21.840
national and national security aspects has never been this dangerous as it is now since probably
00:39:27.140
the 1930s. And we have at the helm of the United States, Joe Biden, somebody who's when he is awake,
00:39:34.760
has been the useful idiot, the useful tool of the Chinese Communist Party for his entire life,
00:39:40.000
somebody who is personally corrupted with tens of millions of dollars to his family from the Chinese
00:39:45.620
Communist Party. And if the Chinese do, in fact, decide to make a move on Taiwan,
00:39:49.680
it's really frightening to think that the person leading our response is going to be Joe Biden.
00:39:55.860
By the way, your thing about despotic regimes and looking to something to rail around the flag,
00:40:00.980
that's 100 percent. That was the wag the dog of the Ukraine. I mean, all this talk, it was like,
00:40:05.520
you know, Zelensky's Churchill and, you know, I'm FDR and you're coming to all the Ukraine nonsense.
00:40:10.520
That's what we called it at the beginning. That's just a diversion. That's a pure diversion,
00:40:14.600
pure diversion from the invasion of the southern border, pure diversion from their actions,
00:40:19.460
that got us in this. Now, Steve, before we talk about Powell and, you know, because everybody,
00:40:24.640
they're all on the business channel, they're all waiting for Powell's words of wisdom, right? A
00:40:28.680
third tier investment banker at fifth tier firms. That's what we got. Steve Mnuchin, thank you very
00:40:34.540
much. We got a complete lightweight at the head of the Federal Reserve, but everybody's just sitting
00:40:40.520
there. Wow. We got it. We're just waiting for his, you know, his the oracle of of Jackson Hole to speak
00:40:46.720
today. Talk to me about this, the blatant payoff in your grill of this student loan. And by the way,
00:40:55.660
it's not a forgiveness. The guys that let the money ain't forgiven it. It's a transfer. It's a
00:41:00.060
transfer to the it's a transfer from Lawrence. Lawrence tribe tweeted it out. This wasn't banning.
00:41:05.640
It wasn't gateway pundit. That jerk tweet out. I really want to thank Biden for taking care of all
00:41:11.000
my students at Harvard. He's sitting there is so great at Harvard to take care of all the students
00:41:16.420
when working class people, guys getting in trucks all day long, men and women doing these tough jobs,
00:41:22.500
right? You're underwriting this Steve Cortez. Two thirds of American adults, Steve, do not
00:41:28.220
have college degrees. And those salt of the earth, gritty working class people were just told, guess
00:41:33.760
what? You're going to pay for the one third. And not even that you're going to pay for really a tiny
00:41:38.780
slice of that one third, most of whom have graduate debt because that's where the vast majority of the
00:41:43.940
debt lies. So privileged people, many of whom chose to go and pursue worthless degrees, are getting a
00:41:49.920
handout from Joe Biden. Now, I will at least say this, Steve, and I want to give credit to Jack
00:41:53.540
Posovic because he just tweeted this out and he's exactly right. In terms of political payoffs, and
00:41:58.260
that's what this is, it's a crass political payoff. At least the Democrats are smart enough to pay off
00:42:03.400
American voters. Establishment Republicans, they pay off CEOs and defense contracts. So think about
00:42:10.280
that contrast. If you're going to do power politics, and if you're going to do crass payoffs, at least
00:42:14.640
the Democrats know where their bread is buttered and they're going to pay off voters. What Mitch
00:42:19.240
McConnell does, and establishment Republicans do, is they reward the CEOs of places like Northrop
00:42:25.000
Grumman. And therein lies one of the key reasons why in America, as you often talk about,
00:42:31.000
the Republicans have won election for decades while we are losing our country. That is the reality.
00:42:37.960
What Cortez brings up is that most of those debts in these graduate programs, it's just the woke
00:42:43.460
culture. It's just getting their culture wars of all this. These degrees are all worthless. If they
00:42:48.720
weren't worthless, they'd be able to have jobs that could pay it off. The terms of these loans are not
00:42:53.700
that brutal, ladies and gentlemen. Remember, everybody paid it off. Every person didn't go to school.
00:42:58.740
Every Hispanic, African American, they're screwing you in your face. If you continue to vote for it,
00:43:05.120
then guess what? You're going to continue to get screwed, just like the guys in Germany.
00:43:09.440
That's what democracy is about. You've got an opportunity to turf them out. Just see what you
00:43:17.080
see. What's your reality of your lived experience? Short commercial break. We're going to talk about
00:43:21.980
the lords of easy money. They're in Jackson Hole Elite Resort, and they're going to be telling
00:43:28.440
you the way the world is today. Cortez is going to break it all down for us next.
00:43:44.100
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Okay, welcome back. You're in the war room. So Cortez, talk to me about, tell, I want the audience,
00:45:38.300
because one of the things we do here, and by the way, I continue to say this all the time to my
00:45:42.080
Evercrack staff, who like you is paying an enormous amount of money to get these Ivy League adjacent
00:45:47.880
educations that we got to figure out if they're worth anything or not, right? If you did a year,
00:45:53.840
I went to HBS, right, and did quite well there. If you did a year in the war room, if young people,
00:46:00.320
I mean this, if you watch the war room every day, and you hear economic analysis, and you go to the
00:46:06.280
links, and you do your homework and read, and the other things we send out on Getter all day long,
00:46:10.420
in one year, you will have a better education going to Harvard Business School. And I say that
00:46:16.700
as an honors graduate of Harvard Business School. I'm not kidding. You will have a better education
00:46:20.440
in business and capital markets in Harvard Business School. Remember, my grandfather only went to the
00:46:25.300
third grade, but he's the best red guy I ever met. We target this show for people, regardless of their
00:46:31.940
education levels formally, that are voracious readers and seekers of knowledge. And I don't care
00:46:38.940
if you don't have a high school degree. Remember, Joe Allen doesn't have a high school degree. Now,
00:46:42.980
he has a graduate degree from Boston University Theology School, where Dr. Martin Luther King
00:46:47.280
went. But if you're a working class person driving a truck, we get a lot of feedback when I do these
00:46:52.360
things like the Summit, and people come up to me. We're here to give you the inside baseball of the
00:46:58.180
way the world works, the way the world works. And I commit to you, if you're a young person, you just take a
00:47:03.860
year of the war room, you watch our analysis, you go to the links, you do the follow-up,
00:47:09.520
right? You will have a better education than if you went to the top business schools in this country.
00:47:15.080
And I mean that, because that's the way we position it. And we've got the brains of the
00:47:19.820
guys like the Cortezes of the world and the Navaras of the world who have been in those places and done
00:47:24.180
exceptionally well and know how to present. Let's go to explain to people why the whole world's
00:47:30.380
watching Jackson Hole. You know, a week after Liz Cheney's catastrophic defeat, why is now the world,
00:47:35.860
the whole financial world tuned to Jackson Hole, sir? Right. Well, and Jackson Hole, by the way,
00:47:41.200
might be the only place in Wyoming where Liz Cheney is actually still popular. But it's a
00:47:45.620
beautiful place, resort setting, and there's a central bank symposium there every year, all the
00:47:50.520
top central bank officials, not just from the U.S., but from around the world. Let me point this out,
00:47:54.500
too, though, before I talk about the present situation. One year ago at Jackson Hole, let's remember
00:47:58.180
this. Chairman Jerome Powell got up and once again pulled the country, lied through his teeth and said
00:48:04.120
inflation is transitory. OK, he either lied or he so massively missed the most obvious signs that he
00:48:09.780
has no business in any job in finance, much less as chair of the Federal Reserve. So I want the audience
00:48:15.260
to realize that the august credentials of people like Jerome Powell or Janet Yellen, those credentials
00:48:21.720
don't mean that they have any common sense, any intuition, any real understanding, or at least
00:48:26.920
any honesty about the situation. And that is simply the reality. And by the way, regarding the
00:48:31.500
credentials of Jerome Powell, he is a lawyer by trade. He went to law school. He was never a trader
00:48:36.480
or a banker or an economist, really. We should have a community banker in that spot, Steve. That's who
00:48:41.720
should be the chairman of the Fed, somebody who has actually lent money at the community level.
00:48:45.760
There's not many community bankers left, unfortunately.
00:48:47.600
Or or or somebody like you, you took that great Georgetown degree. You went to the pits of Chicago,
00:48:52.800
which is men only. I say that metaphorically. I mean, that's as tough as you can get. You get what
00:48:58.300
we call street smarts in a place like the pits of Chicago, right? You learn more about what the real
00:49:03.400
world is about economics and capital markets in a year there than you have as 20 years as a lawyer in
00:49:11.680
Oh, exactly right. And by the way, speaking of Georgetown, a place that gave you and I degrees,
00:49:15.820
a place I don't think wants to claim either one of us. Just as an aside, though, because this came
00:49:19.740
out this morning, Georgetown is requiring its students this year to be masked. It is going to
00:49:26.340
require masks of its students in class. Will you stop? The Jesuits have done what now? By the way,
00:49:34.380
you and I went there when it was still a Catholic university. What are they doing? There's not one
00:49:40.220
shred of evidence. I thought the Jesuits were all about evidence. There's not one shred of evidence on
00:49:44.700
the masks. Is this performative virtue signaling? 100% performative. They're going to feel very
00:49:50.300
virtuous wearing their masks. These are supposedly the smart people. This is supposedly a center of
00:49:54.720
learning, the most renowned center of learning in our nation's capital, Georgetown University.
00:49:59.760
And there's a New York Post headline. You can check me out on this. It's not from Babylon Bee,
00:50:03.960
not from The Onion. They are requiring masks of their students at Georgetown, just to let you know
00:50:08.780
the mentality of these folks. But getting back to Jerome Powell, listen, this speech is widely
00:50:13.700
anticipated tomorrow, much more anticipated, I think, than any central bank speech that I know of.
00:50:17.740
And I've been in the financial markets for three decades. And because there's really so much
00:50:22.620
unknown about what he's going to say, because he faces a brutal choice. Now, he put himself in this
00:50:27.580
position. So don't feel sorry for him, OK? The Fed, through its dereliction of duty, has put itself
00:50:31.980
into a terrible corner. But here are the choices right now, effectively. You either protect capital,
00:50:37.420
and capital has been wrecked so far this year. And what I mean by that is not just the stock market
00:50:41.700
going down, Steve. The stock and bond markets have been going down. Not the way the world is
00:50:46.720
supposed to work. Not the way asset allocation models are supposed to work. A lot of folks out
00:50:51.180
there who follow the 60-40 blend, 60 percent stocks, 40 percent bonds. Generally, if one side's
00:50:56.560
doing poorly, the other side does better. And over time, you do well. OK? And that has historically been
00:51:01.840
true. This year, the 60-40 model has been decimated because of this runaway inflation.
00:51:07.120
That we haven't seen in more than a generation. OK? So he either gets dovish and pulls back and
00:51:12.640
says, I'm not going to raise interest rates significantly because I'm going to protect
00:51:15.520
capital. OK? But if he does that, then the other side of the equation are the masses of middle-class
00:51:21.040
Americans who are drowning right now, who cannot pay their power bill, who are going to have their
00:51:27.180
cars repossessed, who have to make the kind of ridiculous choices that a nation of abundance
00:51:32.360
should never have to make. Choices between shoes or my kid because he has holes in his current ones
00:51:37.760
or pay the heating bill, have food on the table, or make the car payment. OK? This is where middle-class
00:51:45.280
people are and lower-income people are right now in America. And it could get massively worse if
00:51:51.340
Jerome Powell decides to protect capital. So he's got a terrible choice to make. Now, I think he must come
00:51:57.300
down on the side of protecting the masses of the middle class. And capital is just going to have
00:52:01.260
to suffer. I don't see any other way to have a stable, healthy society, frankly, in the United
00:52:07.120
States. But it's really up in the air. It's a coin flip as to which way he leans. And I think he's
00:52:12.320
going to give us some insight tomorrow. It'll be right at the beginning of showtime. So perhaps we'll
00:52:16.760
get some insights into where he is. Steve, your thing last night was fantastic. Your getter. How do
00:52:22.640
people get to your substack? Your getter. We're going to put it up on the site. How do people get
00:52:26.100
there? Please find me at getter. Very simple, at Steve. I'm like Bono, just one name, at Steve.
00:52:31.860
You can also find me on Twitter, at Cortez. Fantastic. Thank you very much. OK. We're going
00:52:37.880
to come back. We've got, I think we've got MTG about her second swatting. We've got Dave Bratt,
00:52:43.380
More Economics. We're going to talk about Taiwan. We've also got the sweeping school board victories
00:52:48.580
in Texas. The mainstream media is blaming Patriot Mobile in the war room. Hey, we'll take it
00:53:01.640
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