Bannon's War Room - Episode 2108： The Lies Of Jared Kushner; Jerome Powell's Jackson Hole Speech

00:00:00.000 America. That's the incendiary new book from former Trump trade czar Peter Navarro, available

00:00:05.300 on Amazon today. Stephen K. Bannon calls Taking Back Trump's America a brass knuckled insider's

00:00:11.480 account of the merciless 2020 fall and miraculous 2024 rise of the White House of Trump. Taking

00:00:17.960 Back Trump's America is the blueprint for a new Trump White House that will truly make America

00:00:23.660 great once again. Order Taking Back Trump's America today on Amazon.

00:00:30.000 Peter K. Navarro in for Stephen K. Bannon. The admiral wanted me to come in. He's on a brief

00:00:39.640 assignment. He insisted he ordered me. I follow orders. I always have a packed show. This one's

00:00:48.320 going to fly pretty fast today. We're going to go over this latest revelation with Zuckerberg

00:00:57.180 Rogan about FBI pressure, about the laptop from hell. And we've been very fortunate to have the

00:01:06.160 great Miranda Devine in with us later in the show. She wrote the definitive work on the laptop from

00:01:13.680 hell. We got the Federal Reserve feckless Chairman Jay Powell in Jackson Hole, Wyoming, after he finishes

00:01:22.340 kind of dusting off and burying the figurative political corpse of Liz Cheney. Let us all rest in

00:01:30.380 peace for her. He's going to try to bury the U.S. economy. Steve Cortez will be right in on that.

00:01:37.740 We are going to try to get the great Doc Hatfield in to talk about what the committee, James Clyburn's

00:01:47.940 committee on the Hill has done to try to blame me for hydroxychloroquine and the boss for the vaccine.

00:01:55.560 And then we'll end the show on a somber note as we commemorate the one year anniversary of the Kabul airport

00:02:06.180 terrorist attack with Sam Faddis. But to kick things off, what I want to do is talk a little bit about

00:02:15.760 Jared Kushner and pose the question here whether Jared Kushner is the Hunter Biden of the Trump

00:02:26.000 family. OK, so Denver, if you can play that clip for me now and then we'll try to wax at least semi

00:02:34.960 eloquent on what I mean by that outrageous allegation that somehow Jared could be Hunter Biden's equivalent.

00:02:42.280 He's asking for a special master and asking for them to stop going through the stuff as they

00:02:48.380 may be right now. The New York Times has got the item today from Maggie Haberman and some of the

00:02:53.840 other reporters that apparently there were 300 classified documents at Mar-a-Lago over the last

00:02:59.880 year or so. And they, you know, they think they've gotten them all by now. Why would the former

00:03:05.480 president have that many classified things at Mar-a-Lago? So I'm not familiar with what exactly the

00:03:11.480 contents were. And but what I'll just say from my personal experience is that, again, in the

00:03:16.720 campaign, in the transition, we had a very innocent meeting with the Russian ambassador. And then,

00:03:22.040 you know, four months later, you're reading that the intel agencies are leaking to the Washington

00:03:26.420 Post that we requested this secret back channel. And then the New York Times and CNN go crazy for a

00:03:31.480 weekend accusing us of treason. And then it turns out such a thing never really happened. And so,

00:03:36.260 you know, I just think you have to be very careful with what you read and obviously just wait for the

00:03:40.040 facts to develop. But I mean, there's been so many things that have been hyperventilated about over

00:03:44.040 the last years that turn out to be nothing. And that's, again, why I wrote this book was I wanted

00:03:48.060 people to really understand what it was like to be living through that when you know you've done

00:03:52.060 nothing wrong. You're there trying to get good things done. And, you know, people are out there,

00:03:56.560 you know, accusing you of all these crazy things. And you have to prove that those things didn't happen.

00:04:01.520 Right. And no, they didn't. And then almost took you down. And knowing that you were innocent,

00:04:06.200 you gave all your time and all those interviews, and still had to wonder if the process would work.

00:04:10.920 I'm going to bring it.

00:04:14.060 So, so Kushner's out with his his new book. And the one tough, the one single one tough question

00:04:24.700 he gets from a book from of all people, Steve Doocy, who's usually the gentlest person in the world.

00:04:31.980 So Kushner dodges and dances around and Brian Kilmeade, kind of like his daddy comes to Jared's

00:04:39.460 rescue. Here's the thing. This whole Kushner issue, I spent four years with the guy in the Trump White

00:04:49.820 House, and a good pit of time earlier than that, on the campaign. And I've said publicly, and I'll say

00:04:57.720 it again here that this book that Kushner has put out is largely a work of fiction. What Jared's MO has

00:05:06.080 always been is to claim credit for whatever worked in the Trump White House. NAFTA would be for it for an

00:05:15.060 example, go renegotiating that, assign blame to somebody else for whatever went wrong. He, he totally

00:05:26.120 mismanaged large segments of the pandemic, but he would always try to shift blame to other people. And

00:05:32.940 then when he didn't get his way, he'd run to daddy in law, uh, in the East wing at night and, uh, try to

00:05:40.200 kind of have his way. Um, and it's, there's no, there's no secret why we had four chiefs of staff

00:05:47.020 in four years, which is unusual for a presidential administration is because none of them, uh, could

00:05:56.280 effectively, uh, do their job when Jared was effectively doing it for them, uh, by back channeling

00:06:05.940 the boss and everybody else. Now here's, here's, what's bothering me about the book. The one,

00:06:13.260 I think, truthful account of what Jared did that he boasts about in his book has to do with something

00:06:23.940 that I've written about extensively. And it's in the Taking Back Trump's America book, which is that

00:06:29.720 the China negotiations, the communist China negotiations, Jared truthfully admits that

00:06:40.840 the two most important people shaping him to then shape the communist Chinese negotiations

00:06:49.420 were this guy named Steve Schwartzman, who's a wall street hedge fund guy, uh, and Henry Kissinger,

00:06:57.960 who was the secretary of state for Richard Nixon, who engineered, uh, the opening of communist China,

00:07:05.680 uh, to the world, uh, back in the seventies. And it, it basically set us on a collision course

00:07:13.880 that we are on today with the imperial power of communist China. So, so where's the Hunter Biden

00:07:21.540 comparison to Jared Kushner come in? Um, certainly Jared, I would never accuse Jared of doing crack

00:07:29.100 cocaine, uh, or hookers, right? Never did that. He's, you know, he's above board on all of that,

00:07:36.360 but the real obscenity in the laptop from hell story that Miranda Devine is going to tell us about,

00:07:44.540 um, um, later on in the show, um, really is about the unregistered foreign lobbyist activities that

00:07:54.100 Hunter Biden did, uh, not just in, in Ukraine with the corrupt Burismaites, uh, but a lot in communist 0.99

00:08:03.060 China. I mean, we, we know for a fact that Hunter went over there on Air Force Two with his dad.

00:08:10.460 And while he was over there, he cut deals and would come back with, uh, a billion dollars or more,

00:08:17.720 uh, to you, to be used, to be clear here, to be clear here. What was that money to be used for

00:08:24.100 besides buying more crack? It was to buy American manufacturing companies for the Chinese and

00:08:32.800 effectively export them back to China. So in my judgment, the real sin of Hunter Biden,

00:08:40.460 the, the sin that, that he should be hauled up on the carpet for on Capitol Hill when the

00:08:45.860 Republicans take control of Congress in January is the selling out of America to the communist Chinese 1.00

00:08:56.420 for monetary gain, leveraging, leveraging his father's connections. Okay. That's, that's the Hunter Biden

00:09:07.620 story. Let me say it one more time. What Hunter Biden did as the son of the president was go to China,

00:09:15.460 use his connections with his father to raise a bunch of money to pad his own nest. And that money that was

00:09:24.040 then used to take jobs away from the American people and enrich the Chinese so that they could 1.00

00:09:30.560 build their military. Okay. All right. Now what's the analogy here? Jared Kushner.

00:09:36.940 I was the director of trade manufacturing policy in the Trump white house. Robert Lighthizer was the

00:09:43.980 United States trade representative. Both Bob and I were, as Steve Bannon was in the white house,

00:09:51.740 the China Hawk wing. Wilbur Ross sometimes joined us. He leaned more towards us than he did to the

00:09:59.780 other wing, which was Gary Cohn, later Larry Kudlow, Steve Mnuchin and Jared Kushner. Okay.

00:10:06.640 So we had these two wings and our mission was to fulfill the mission of president Trump. We never

00:10:14.040 thought we were the ones that got elected. We just wanted to fulfill Donald Trump's vision.

00:10:19.400 And Donald Trump's vision was to crack down on China's economic aggression using tariffs to do

00:10:27.980 so and gradually wean America from made in China and wean America from made in China because we as a

00:10:39.120 country and the president did not want to be in the business of building up the Chinese economy

00:10:44.400 and military so that they could kill us, which is what their military wants to do. Let's be clear

00:10:50.760 about that. So Lighthizer and I were constantly trying to implement that China Hawk vision that

00:10:59.240 President Trump had, but we were constantly bumping up against Kushner and Mnuchin, Gary Cohn,

00:11:07.260 and then Kudlow in this whole thing. Now, Kushner's betrayal, this is the treasonous part of it.

00:11:13.700 Kushner became a puppet of this guy named Steve Schwartzman. There were some other Wall Streeters

00:11:20.340 involved, John Thornton, who effectively owns the Brookings Institute now on behalf of China.

00:11:26.680 Larry Fink. These guys, every single one of them, okay, gets richer when this country's softer on China.

00:11:37.260 Okay. The more jobs we send to China, the more American capital from our pension funds we send

00:11:45.200 to China, the more Steve Schwartzman, John Thornton, and Larry Fink get rich. These were the guys

00:11:54.660 Jared Kushner relied on to scuttle what essentially was the Lighthizer-Trump-Navarro deal with the

00:12:05.860 Chinese. And much has been written about this. But I can tell you that at one point, because of 1.00

00:12:15.040 President Trump's strong leadership, we had a really great trade agreement ready for the Chinese to sign

00:12:21.400 that they had agreed to sign. They had agreed to sign. And they backed away from it. And at that point,

00:12:29.600 what President Trump should have done and wanted to do and should have done and wanted to do was just

00:12:36.780 put the rest of the tariffs on. Just be done with it. Mnuchin, Cohn, Kudlow, and most of all, Kushner

00:12:50.040 would constantly back-channel Schwartzman. And not only did they back-channel guys like Schwartzman,

00:12:58.600 they spoke directly to the communist Chinese negotiators without telling who? Lighthizer,

00:13:06.480 the top trade representative. And the practical result of Jared Kushner's treason

00:13:13.020 was this so-called skinny deal, which was signed in January of 2020. Privately, I warned the president

00:13:23.520 and everybody else who sat in the Oval Office that that deal was not only a bad deal for the American

00:13:30.480 people, the Chinese weren't even going to abide by that anyway. And of course, they didn't, right? 1.00

00:13:38.660 But you got Jared boasting in his new book that this thing was a, quote, massive, massive victory.

00:13:46.880 Massive victory. Massive victory for the American people when, in fact, the only thing that Kushner

00:13:53.780 did was scuttle what would have been a tough deal. And what is he doing now? See, this is the thing.

00:14:00.020 This is the thing. Him and Mnuchin are out there collecting billions of dollars,

00:14:04.240 billions of dollars from the Saudis, from the Chinese, whoever. It's like foreign capital.

00:14:11.140 They're going out, all the networks that Kushner built up in the White House. It's the old digital

00:14:18.780 Rolodex. He just calls them up, dials for dollars, and now he's going on to his next venture

00:14:26.220 and leaving all of us to clean up Jared Kushner's mess. That's treason. Jared Kushner is the Hunter

00:14:36.140 Biden of the Trump administration. Navarro Infra Bannon will be right back. We're going to be

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00:16:23.880 How do you handle things when they're a big news item that's controversial? Like there was a lot of

00:16:32.160 attention on Twitter during the election because of the Hunter Biden laptop story, the New York Post.

00:16:38.180 Yeah, we have that too.

00:16:39.280 Yeah. So you guys censored that as well?

00:16:41.560 So we took a different path than Twitter. I mean, basically the background here is the FBI,

00:16:47.340 I think basically came to us, some folks on our team. It was like, hey, just so you know,

00:16:53.300 like you should be on high alert. There was, we thought that there was a lot of Russian propaganda

00:16:57.780 in the 2016 election. We have it on notice that basically there's about to be some kind of dump

00:17:05.240 of, that's similar to that. So just be vigilant. So our protocol is different from Twitter's.

00:17:12.820 What Twitter did is they said, you can't share this at all. We didn't do that. What we do is we

00:17:18.800 have, if something's reported to us as potentially misinformation, important misinformation, we also

00:17:26.600 have this third-party fact-checking program because we don't want to be deciding what's true and false.

00:17:30.860 And for the, I think it was five or seven days when it was basically being determined whether it was

00:17:39.460 false, um, the distribution on Facebook was decreased, but people were still allowed to

00:17:46.200 share it. So you could still share it. You could still consume it.

00:17:49.280 So when you say the distribution has decreased, how does that work?

00:17:53.220 It basically, the ranking in newsfeed was a little bit less. So fewer people saw it than would

00:17:58.000 have otherwise. So it definitely-

00:18:00.440 By what percentage?

00:18:01.200 I don't know off the top of my head, but it's, it's, it's meaningful, but I mean, but

00:18:05.420 basically a, um, a lot of people were still able to share it. We got a lot of complaints

00:18:12.360 that that was the case. Um, you know, obviously this is a hyper political issue. So depending

00:18:16.880 on what side of the political spectrum, you either think we didn't censor it enough or censored

00:18:20.200 it way too much, but, but we weren't sort of as black and white about it as, as Twitter.

00:18:24.360 We just kind of thought, Hey, look, if, if the FBI, which I still view as a legitimate

00:18:29.420 institution in this country, it's like very professional law enforcement. They come to

00:18:33.700 us and tell us that we need to be on guard about something that I want to take that seriously.

00:18:37.780 Did they specifically say you need to be on guard about that story?

00:18:41.480 I, no, I don't remember if it was that specifically, but it was, it basically fit the pattern.

00:18:46.740 They put Peter Navarro in leg irons for simply doing his constitutional duty. Now they want

00:18:52.160 to put Peter in prison for standing up for Donald Trump. Please go to Amazon right now

00:18:57.240 and order taking back Trump's America to help fund Peter's legal defense. Taking back Trump's

00:19:02.880 America provides a critical MAGA blueprint to put Trump back in the white house in 2024

00:19:07.880 by taking back Trump's America on Amazon today. If they can put Peter Navarro in prison,

00:19:14.160 they can come for all of us.

00:19:16.000 Yeah. I wonder, I wonder if Zuckerberg was in leg irons when he was doing that, that thing

00:19:25.600 with Rogan. I got, I got a, I got a hand it to Denver, man, digging out that clip of Rogan

00:19:31.580 and Zuckerberg from what would have been January of 2021, right after the election, we discovered

00:19:40.580 that the FBI suppressed information about Hunter Biden's laptop, which basically would have

00:19:47.340 swung the election to Trump if that had been gone. Oh, wait, wait, wait, wait. What, what

00:19:52.720 month is it? August, 2022. Hey, Mark, what took you so long? You twit, huh? No, you're not

00:20:03.840 the twit. That's Dorsey. Look, Belichick says, you are what your record says you are, right? 0.99

00:20:15.780 And let's go over the record of the FBI. Let's start with this. This is an incredible revelation.

00:20:24.080 We're going to be talking to Miranda Devine at the top of the next hour about this whole situation,

00:20:31.820 but, but drill down on that just for a minute. The FBI, which had Hunter Biden's laptop for probably

00:20:42.020 over a year before they told Zuckerberg, it was Russian disinformation, knew it wasn't Russian

00:20:49.540 disinformation, yet went to Zuckerberg and said, nah, don't put that up there. All right. So,

00:20:57.240 so, so there's that data point. And then, then we go back in time, yeah, to 2016.

00:21:09.520 Even before Trump gets elected, the intelligence operatives in the U.S. government were beginning

00:21:20.420 to try to weave this Russia hoax web around Trump. And we know for a fact, this is indisputable

00:21:31.140 fact, that it was FBI top leadership, Page, Strzok, notably Comey, others who concocted this,

00:21:44.300 this FISA warrant scheme in order to build and lend credibility to this Russia hoax. And what was it?

00:21:53.620 I mean, look, it was designed to be a coup d'etat of Donald Trump before he even got sworn in or

00:22:02.780 shortly after he got sworn in, because they were relentless about this. So you go this, okay, so at

00:22:09.200 the, at the beginning of the administration, the FBI tries to prevent him from taking power. At the

00:22:16.500 end of the Trump administration, just that single act, that single act, let's call it treason for

00:22:24.680 what it is, because it was, was trying to overthrow a sitting president. Oh, wait, let's call it an

00:22:31.940 insurrection. That's what it is. Aren't insurrectionists, the ones who use weapons,

00:22:38.620 they're armed individuals who try to overthrow the American government. Isn't that what the FBI

00:22:46.060 is now? Armed insurrectionists, okay, because those armed agents went to Zuckerberg. And, you know,

00:22:56.360 the funniest part of that, that whole thing was when Zuckerberg defends the FBI, he calls them what?

00:23:04.200 What do you call them? Oh, they're a professional organization. No, they're not. No, they're not.

00:23:10.620 They're insurrectionists, if you believe Zuckerberg. I mean, Mark, show us the frigging receipts, 0.79

00:23:17.920 dude. I want to see all of the email correspondents. I want to know who the agents were, 0.84

00:23:23.640 who came to you. Who are these people? These people cannot remain nameless. Put that on the

00:23:31.480 checklist for January of 2023, when the Republicans start issuing their own subpoenas to people,

00:23:42.240 calling people up to Capitol Hill to hold them account for all manner of stuff. Let's put this one,

00:23:49.140 let's put this one on the list. So you got the Russia hoax. Now you got the Zuck hoax. Oh, 0.93

00:23:56.540 short digression. Hey, Joe Rogan, thanks for asking Zuckerberg deep questions about why he spent almost

00:24:06.520 a billion dollars helping people steal the election from Donald Trump. Okay. So, so this was a twofer

00:24:13.400 for Zuck Bucks, right? He, he willingly cooperated with the FBI and suppressing information about the

00:24:21.760 Hunter Biden laptop. Oh, Zuck, here's my impression of Zuck. Well, I can't remember how much we suppressed

00:24:28.440 it. I'll get back to you on that, Joe. But he did that. And at the same time he was doing that.

00:24:34.900 What was he doing? Zuck Bucks, drop boxes, ghost voters, doing all sorts of stuff. Okay. Quick aside,

00:24:46.060 let me sell taking back Trump's America yet again to you. Yeah. There's a great chapter in there about

00:24:52.500 the Zuck Bucks issue and how unconscionable that guy is at Facebook. I'm glad he admitted it. I mean,

00:25:02.180 this is a big story. So data points. So, so FBI 2016, FBI now 2020 with the Zuck story. Now in

00:25:12.680 between, what do we got? Of course we got me and leg irons. That was like a nice over the top arrest

00:25:19.680 with five armed agents. We've got Mar-a-Lago. They see the big difference between what they did to me

00:25:28.600 and what they did to President Trump and Mar-a-Lago. What's the big difference? Well,

00:25:33.660 the ones that came for me only had handguns. The ones that went down to Mar-a-Lago, they,

00:25:38.660 they were packing. Okay. They had some, I mean, to break into Melania's panty draw, 0.97

00:25:44.760 you need to be packing. Okay. You know what I'm saying here? You got the Roger Stone circus

00:25:51.180 where the FBI used frogmen. Boy, I wonder how much that cost. I think we know it's over a million

00:25:59.200 dollars for that raid. And they should have charged CNN because CNN probably made over a million dollars

00:26:06.320 by being the only ones there. And why didn't MSNBC sue CNN and the FBI for letting CNN get the scoop on

00:26:15.640 them. So that we got, and then we got Paul Manafort in solitary confinement, George Papadopoulos in

00:26:24.500 prison. You know, my biggest thing with the FBI in terms of the impact on the Trump administration

00:26:30.880 was, was the, the thing that, that, that really bothered me about the whole thing about what the

00:26:42.540 FBI did was, was how they suppressed all manner of information during, about what they did to Mike

00:26:51.800 Flynn. I mean, Mike Flynn to me is a hero. Okay. General Mike Flynn. I met him during the transition

00:26:59.480 in 2016. We had a plan to take down communist China as China Hawks. And what they did to Mike Flynn 0.98

00:27:09.660 was blackmail him by threatening prison for his son. Mike did the honorable thing and resigned and

00:27:19.420 pled, whatever. And when they took Mike Flynn out, that set in motion, a whole chain of events,

00:27:25.920 a whole chain of events where it started with HR McMaster, a globalist replacing Mike as a national

00:27:34.700 security advisor, had to fight him on the China stuff. And then down the road, we got John Bolton

00:27:41.660 and then it didn't settle in the national security council until Robert O'Brien came into the picture

00:27:50.260 and thank God for Robert O'Brien. All right. When we come back, we're going to shift away from the FBI

00:27:57.880 and move straight to the economy. We got Jay Powell and Jackson Hole, and we got Steve Cortez

00:28:04.840 in the war room. I'm Peter Navarro in with Stephen K. Bannon. We'll be right back.

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00:29:41.360 In the 70s, as inflation climbed, the anticipation of high inflation became entrenched in the economic

00:29:46.760 decision-making of businesses and households. The more inflation rose, the more people came to expect

00:29:52.460 it to remain high, and they built that belief into wage and price decisions. As former Chairman Paul

00:29:59.960 Volcker put it at the height of the great inflation in 1979, inflation feeds in part on itself, so part

00:30:06.900 of the job of returning to a more stable and more productive economy must be to break the grip of

00:30:11.660 inflationary expectations. One useful insight into how actual inflation may affect expectations about

00:30:19.480 its future path is based in the concept of rational inattention. When inflation is persistently

00:30:26.420 high, households and businesses must pay close attention and incorporate inflation into their

00:30:30.620 economic decisions. When inflation is low and stable, they are freer to focus their attention elsewhere.

00:30:36.560 Jay Powell, I'm writing this stuff down. A new term for our lexicon, rational inattention. I never got that one

00:30:51.960 in the history books, but I'll tell you what caught my eye with this, and we're going to talk to the great

00:30:58.540 Steve Cortez momentarily. It's like when Powell gets on to begin to speak, like just a few minutes in, the markets

00:31:08.560 kind of just drop down, right? And I think what probably caught people's attention who know about the history

00:31:16.260 of stagflation was dropping the word Volcker, okay? Paul Volcker was the Fed chair in Reagan's day, who had the

00:31:30.780 cojones to dramatically raise interest rates to break the back of what was then a persistent wage price spiral

00:31:42.660 and high inflationary expectations. The whole conceit of the Reagan-Volcker policy to end stagflation 0.82

00:31:53.000 was kind of a shock and awe at the Fed to quite literally induce a prolonged and sharp and painful

00:32:03.040 recession that thereby signaled to businesses and consumers that, hey, inflation's over. And it worked

00:32:10.200 beautifully, okay? Now, we're not in that world now, but the idea that Jay Powell, who isn't trained

00:32:20.020 in economics and who's a friggin' idiot, who's only there because Steve Mnuchin lobbied President Trump 0.99

00:32:26.560 to put him there, the idea that if Jay Powell is going to channel the great Paul Volcker, that signals, 1.00

00:32:34.700 that signals to the intelligentsia on Wall Street that, hey, the Fed's probably going to be aggressive

00:32:41.740 about raising interest rates. So with that little historical rant, let's bring in the great Steve

00:32:52.540 Cortez and his bouquet there. Is it your birthday there, Steve, anniversary? What is that, Paul?

00:32:59.080 Yeah, I just turned 30. Yes, happy birthday to me now. Is that like a Zoom background or is that real, man? 0.97

00:33:06.040 Yeah, that's real. Listen, you know, hey, I try to tell you, I'm a TV guy, so I try to pay attention to the shot

00:33:11.260 wherever I am. How about, what is it, a boutonniere or something on your lapel? Like, grab one of those flowers,

00:33:18.520 pop it in there for the next segment, brother. If you're not smart, you got to try to look decent, okay?

00:33:23.080 I've always operated on that principle. You got the Kudlow handkerchief, man. What are you going

00:33:27.200 like Wall Street on me, dude? You're in Tennessee, man. Listen, I am Wall Street, not philosophically

00:33:32.640 Wall Street, but I spent two and a half decades. I spent 25 years trading at a short. You're Rio Grande

00:33:37.120 Valley in my heart, brother. All right, so the economy's going to hell in a handbasket. I've

00:33:45.080 called a short on the market long ago and say the Dow's going to 25,000 before 40. Where are we at

00:33:52.980 now? What's your takeaway from Jay Powell and Jackson Hole? And what do you want to tell the

00:33:58.740 war room folks today? Well, you know, my main message is even Powell, who is a buffoon, 0.98

00:34:04.540 even Powell is starting to get it. He's starting to realize the crisis that is occurring right now 0.71

00:34:09.000 in our country. And when one out of six Americans, 20 million households literally can't pay their

00:34:13.180 utility bill, the most basic bill any person faces, any adult in their life, when one out of six

00:34:18.760 households can't pay the utility bill, we have an all-out crisis in this country. It's not

00:34:22.700 debatable whether or not we're in a recession. It's just the extent of that recession and whether

00:34:26.760 or not that recession tips into something even worse, into depression territory. So Jerome Powell

00:34:31.360 is starting to get that message. I think this was a welcome speech today, albeit far too late.

00:34:37.000 Financial markets don't like it. Right now, the Dow is down 400 points. The Nasdaq's down 1.75%.

00:34:42.380 Financial markets don't like it, though, for good reason, because, you know, and I mentioned this

00:34:45.620 yesterday when I was on with Admiral Bannon. Right now, the Fed, and nobody should feel sorry for

00:34:50.700 Jerome Powell because the Fed put itself in this corner. But the Fed is in a corner right now because

00:34:54.640 we have absolutely runaway inflation, and both choices for the Fed are bad. And what I mean by

00:34:59.880 that is if the Fed accommodates, if it turns dovish, right, and tries to reward capital, then it's going

00:35:06.140 to absolutely punish tens of millions of working class Americans who are barely hanging on. That is 0.52

00:35:12.280 the reality right now if they try to protect capital. But if they try to protect those masses,

00:35:17.440 millions of Americans who need help by squashing inflation, by raising interest rates, they're

00:35:22.780 going to smash capital, right? And so there's no good choice here in either direction. What

00:35:27.700 Powell told us today is he realizes the severity of the crisis. I think you're exactly right,

00:35:32.760 Dr. Navarro, for him to directly quote Volcker, not just channel his thinking, but to directly quote

00:35:38.800 Volcker, who told us that inflation feeds on itself, that it can become a self-fulfilling problem

00:35:44.940 and a really downward cycle for the country in so many ways. For him to quote Volcker is

00:35:51.240 extremely significant. He also told us, let me give you another quote that I think was very

00:35:55.960 important from Powell today. He said, history cautions against prematurely loosening policy.

00:36:02.200 History cautions against prematurely loosening policy. So again, all of this tells me that he is

00:36:08.980 starting to get it. Now, it's way too late, okay, but better late than never. And by the way,

00:36:13.740 speaking of late, I think this is an important point because this is a big central bank conference.

00:36:17.440 It's not just about Jerome Powell. Basically, all the United States central bankers are there,

00:36:21.020 as well as a lot of central bankers from around the world. And I want to put this quote out there

00:36:24.880 because I think it deserves attention and it deserves rebuke. The chairman or the president

00:36:29.220 of the Atlanta Fed, Bostick, he also spoke this morning. And this is a quote from Bostick. He said,

00:36:34.420 quote, levels of inflation now were unimaginable 18 months ago. Unimaginable 18 months ago. Well,

00:36:42.160 Peter, they were not unimaginable to you, nor to me, nor to anyone who has any degree of sophistication

00:36:49.120 or expertise who was willing to take an honest look at the data and the evidence and where policy

00:36:54.740 was taken. Quick digression here. Let us note for the record, Steve, that Georgia is not only the

00:37:02.100 cesspool of electoral presidential politics, it is now the cesspool of economic forecasting. Continue,

00:37:09.940 sir. Yes. Well, I mean, but just, you know, he really deserves, he deserves this public review.

00:37:16.020 I mean, unimaginable 18 months ago. Unimaginable, yeah. First of all, you are paid. How long ago was

00:37:22.060 it on the war room? How many months ago? Do you remember, Steve, the first time? I mean, I was

00:37:26.300 talking about stagflation. I mean, I wrote a memo when I was in the White House in May of 2020,

00:37:33.820 warning that things were setting up for a stagflationary scenario because of these supply

00:37:40.880 chain issues, the dire, dire situation with small businesses going away, the problems with people

00:37:50.340 being able to pay the rent, the more this, that, and the other thing. Do you remember when you first

00:37:55.840 raised the stagflation issue? I believe I used stagflation first in January of 2021, so just over

00:38:03.500 18 months ago, basically when Biden took office. You know, once it was very clear the team that he

00:38:08.560 was assembling, and once it was very clear what they were going to institute and inflict upon this

00:38:13.240 country, you know, I joined you in trying to loudly warn people we are going into an era economically

00:38:19.060 that we have not seen since the 1970s. And by the way, I now believe, you know, let me go further

00:38:24.680 than that. The 1970s now, that era would actually be a relief at the present. What I mean is the

00:38:29.820 dangers are now far greater than they were in the 1970s. So at that point, I was warning about a

00:38:34.840 Carter-style malaise. I think now I'm warning about far, far worse than that. And why, though? Not

00:38:40.400 because of my opinion, because of the data. Yeah, the other day out of the war room, I was talking

00:38:46.060 with Steve about how Larry Summers, who at one point was the dumbest smart guy I had ever met until I 0.63

00:38:53.480 met Steve Mnuchin. But Summers came out with a paper that basically said that we've got to hit 0.77

00:39:00.840 5% unemployment for a sustained period of time, which implies a significant slow rate of growth

00:39:11.180 or recession. We've got to hit that for a sustained point of time in order to wring inflation out. 0.93

00:39:16.640 So, and that implied in turn that the black unemployment rate would probably hit something

00:39:24.100 like 12% for a sustained point of time. Here's my question. It's like, when Powell gets up there

00:39:30.200 and says, we got to maintain high interest rates, he never says that's going to mean we're going to

00:39:37.960 have slow growth or a recession, right? He just says, we're going to have high interest rates.

00:39:43.200 Whereas Summers at least acknowledges that, hey, the Fed's going to raise rates. We're going to have

00:39:49.600 this. Does Jay Powell understand that he's inducing a recession? Will he ever admit that?

00:39:58.540 No, he won't use the R word, right? You know, the scarlet letter R, believe me. But he's starting to

00:40:03.500 get there. Again, far too late, far too little, far too late. I'm not remotely praising him for now

00:40:08.680 acknowledging what is obvious to every single American people who have never studied economics

00:40:13.080 but have paid a bill, right? It's painfully obvious to them. But here's, I want to give you,

00:40:16.940 you bring up a great point. And I do want to give you a quote for him because I think he's taking

00:40:20.640 the smallest of baby steps towards starting to admit that reigning in this inflation is going to be

00:40:27.960 extremely painful for the country. Now we have to do it. We absolutely have to do it because it's more

00:40:32.840 painful to do nothing or to simply try to reward capital because this country simply cannot handle

00:40:38.260 electricity prices that went up. Hang on, let me challenge you a bit on that, Cortez.

00:40:43.640 Well, let me give you a quote for him. Hang on, just give me a second here. I'll hand it right back

00:40:47.720 to you. We've got plenty of time. See, the thing about it is we have to recognize that in a

00:40:53.900 stagflationary environment, the Fed's a one-trick pony. It can either give us recession or it can give us

00:41:01.700 growth depending on where it sets interest rates. And unless you have other parts of government

00:41:08.180 doing what they need to do to drive growth, then it's a fruitless venture. And all that we will see

00:41:17.780 is the Fed doing kind of the yo-yo like it did during the 70s. I mean, if you remember what Arthur

00:41:24.020 Burns did, he was up, he was down. It's crazy. So I guess the question to you is like, really,

00:41:30.660 when you say the Fed's got to do what it's got to do, I mean, don't you have to be, tell me what

00:41:36.360 else the rest of government has to be doing to make that policy effective? Because that's not

00:41:41.780 going to be effective, Steve. It's just going to give us misery in one form or the other. If he's

00:41:47.300 weak, it gives us inflation. If he's strong, it gives us recession. So when you say the Fed's got to

00:41:52.080 do what it's got to do, fill in the rest of the blank, sir. And we're going to take you into the next

00:41:56.240 break. So you'll have plenty of time to wax eloquent. Yeah, of course. No, listen, Peter,

00:42:00.620 incredibly important point. What the Fed can't do are things like secure the border. Now you might

00:42:05.980 say, wait a second, how does that relate to inflation? Well, here's why. Because real wages

00:42:09.700 have gone down for 16 straight months under Joe Biden. Americans are working harder to get poorer

00:42:15.920 every single month of his presidency. If we were to restrain the border, we would get control of the

00:42:22.400 border and disallow these millions of new workers who are competing unjustly and illegally in the

00:42:28.820 labor market against American citizens. Real wages would start to rise dramatically. So that is an

00:42:34.400 example of a policy that is very attainable, very quickly if we have the resolve, that would greatly

00:42:40.220 benefit Americans who are suffering from inflation. Now, again, the Fed has no control over the border,

00:42:45.100 right? That's an issue for Congress and the executive branch. But my point is, those are the kinds of

00:42:50.100 reforms that can lead to growth, even when we're trying to fight this insane inflation that is

00:42:56.360 bedeviling the country because of Biden. All right, Brother Cortez, we'll be back after the break. Do me a

00:43:02.220 favor, go poke out some more of Powell's stuff, see if there's anything else of interest in there.

00:43:09.700 We'll resume this conversation. But I also want to talk to you a little bit about some of the political

00:43:14.600 issues. Maybe give us an update on the J.D. Vance race and whatever else ones you're involved in.

00:43:20.660 I'm Peter Cain, to borrow in for the great Stephen K. Bannon. This is a temporary assignment. Of course,

00:43:27.400 the Admiral will be back with you soon. Out.

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00:47:04.440 Now they want to put Peter in prison for standing up for Donald Trump.

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00:47:28.660 Hey, I'm not kidding about Taking Back Trump's America funding my legal defense fund. My costs

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00:48:59.900 good stuff you can do. Mike Lindell, you are a patriot, sir. All right. Now we're going to quickly

00:49:06.940 get back to Steve Cortez on the economy. I'm going to set one of his charts up real quick.

00:49:12.080 The whole Wall Street shuffle when you go as a, as a, as a newbie naive person to give your money

00:49:21.420 for your 401k or whatever they say, well, put about half of it in stocks, half of it in bonds.

00:49:28.940 And that's what they call asset allocation, right? The older you get, the more bonds you want usually.

00:49:34.900 Okay. The idea is the reason you do that is there's a natural hedging thing going on. Stock and bond

00:49:42.300 prices usually go in opposite directions. So if the stock market's going down, you're going to make

00:49:50.260 money on bonds. So that asset allocation works. In a stagflationary environment, however, where you've

00:49:58.540 got simultaneous inflation and recession, stock prices are going to fall because of the recession

00:50:05.880 and bond prices are going to fall because as inflation rises, bond prices go down because

00:50:12.740 they're inversely related. Now, Steve, are we in a stagflationary environment? What is this instrument

00:50:21.880 from BlackRock? Tell us? Yes, we are 100% in, in a stagflationary environment. Again, that's not my

00:50:29.620 opinion. That's what market prices tell us. And as I often preach, price is truth when it comes to

00:50:35.180 the economy. So there's actually an ETF from BlackRock, a firm that I'm not a fan of, but they

00:50:40.140 have some very successful ETFs out there, meaning an exchange traded fund. So in one ticker, you get a

00:50:45.260 group of companies, or in this case, a group of companies and assets together. And that ticker is

00:50:50.080 AOR. And look, I'm not advocating for or against this ETF. My point here in showing AOR, which is

00:50:57.260 chart number two, folks, if we can please pull that up, is that there is nowhere to hide right.

00:51:02.760 Okay? So this is AOR for this year, for the folks who are watching the telecash, you can see that the

00:51:08.400 trend is demonstrably. To be clear, Steve, to be clear, what's the asset allocation? How much stocks,

00:51:13.740 how much bonds? Oh, I'm sorry. Yes. Good point. So this is a 60-40. Burying the lead, brother.

00:51:17.280 So it goes for 60% stocks, 40% bond. And again, over time, just as you discussed, over time,

00:51:26.020 the rationale there being that when you're having problems in stocks, your bonds are doing well,

00:51:30.560 you're collecting interest rates on your bond side, you're hopefully collecting yields on the

00:51:34.000 stock side. Over time, a 60-40 blend. And Wall Street is right for the most part, that over time,

00:51:39.180 for most investors, this is a reasonable way to invest if you're not terribly risk tolerant.

00:51:45.000 So the 60-40 blend is sort of the default position of investing for regular individuals in the markets

00:51:52.720 right now. But if we look at the 60-40 blend as represented by ticker AOR, what we see right now

00:51:59.740 is that year to date, there is nowhere to hide. In other words, you are getting pummeled in stocks,

00:52:05.840 and at the exact same time, you are getting pummeled in bonds. And AOR for the year is down 12%.

00:52:10.200 And by the way, you just heard what the folks on CNBC, Fox Business never tell you about.

00:52:18.540 I know you never hear this stuff. This is the best place for your financial news, just saying.

00:52:23.340 All right, Steve, we've got just a minute and a half left. Tell us about two races that you want

00:52:31.180 people to make sure we win. They're very related, yes. And J.D. Vance in Ohio. Go.

00:52:37.020 And very related to this inflation issue. So there's two candidates that I'm helping that I

00:52:41.280 want to specifically advocate for, because they're part of the solution to this inflation quagmire that

00:52:45.940 we're in. One is J.D. Vance, who's running for Senate, of course, in Ohio, the Republican nominee.

00:52:50.080 He's running against Tim Ryan, who is a lifelong politician and incumbent congressman in the House

00:52:55.840 of Representatives, somebody who claims to be a populist when he's back in Ohio, but in Washington,

00:53:00.080 acts as a sewer creature and has voted for all of the inflationary madness that Biden has put in

00:53:05.520 front of him. According to FiveThirtyEight, which is a left-leaning website, he votes with Biden 100%

00:53:10.820 of the time. So we have to put J.D. Vance in the Senate. On the House side, John Gibbs is an incredibly

00:53:16.960 dynamic and persuasive young man. He already knocked off Peter Meyer, who was an impeachment rogue,

00:53:23.180 a rhino Republican who needed to go and has been dispatched by John Gibbs. But he's in a tough race in 0.69

00:53:28.600 West Michigan, Michigan free. We've got to get him over the top in that tough House race. He will

00:53:33.020 prevail, I believe, but it won't be an easy win. Trump has endorsed both Gibbs and Vance, right?

00:53:40.500 These are Trump-endorsed candidates. All right. That is the great Steve Cortez. I wish you were the Fed

00:53:47.420 chair, sir. Maybe Treasury Secretary or the new Trump administration, sir. You should be the National

00:53:54.420 Economic Council director. Cortez, we'll see you again. Navarro, coming up with the great Miranda

00:54:01.560 Devine at the top of the hour to talk about the FBI and the Biden laptop from hell. Navarro in

00:54:09.380 for Stephen K. Bannon. And we'll be right back with a hot another hour.

00:54:16.520 Because we're taking down the CCP. Spread the word all through Hong Kong. We will fight till

00:54:23.740 they're all gone. We rejoice when there's no more. Let's take down the CCP. 0.87

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00:55:48.580 They put Peter Navarro in leg irons for simply doing his constitutional duty. Now they want to put Peter

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Bannon's War Room - August 26, 2022

Episode 2108： The Lies Of Jared Kushner; Jerome Powell's Jackson Hole Speech

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