Episode 2135： The coming Economic ＂Rush＂; The Main Priority We Must Do Is Secure The Border; Millions Of Migrants Admitted To The US And Gain Government Benefits
In this episode of the Year of Our Lord, 2022 War Room, the War Room hosts are joined by David Gergen, Mike Davis, Dave Bratt, and Steve Cortez to discuss the current state of the economy, the current political climate, and the possibility of a civil war among Americans.
00:00:00.000This these underlying contradictions that seem to be driving the intensity of the current of the current political landscape.
00:00:08.900Tom, what do you make of that? I understand your optimism here, but that hasn't been resolved, it seems to me.
00:00:15.460Well, I defer to your works, which I've read and admired.
00:00:20.540I think that there is a 20 percent of America that basically is white nationalist.
00:00:26.000That in recent years felt permission to act out on that and were given permission by the president and the Republican Party.
00:00:36.500I think the large bulk of Americans don't like white nationalism, especially in violent white nationalism.
00:00:45.720And they are reacting to it now and saying enough is enough. You people go back under your rock.
00:00:52.340So, Tom, while I agree with your assessment about the lessening danger of a civil war among Americans,
00:01:02.620there is a view, a feeling that there is a virus out there, an infection caused by specifically largely one person over the last five or six years.
00:01:13.100That person is no longer in office. And the people who are most susceptible to catching one of the permutations of this virus are Americans who have suffered some sort of sense of loss over the past 10 or 15 years.
00:01:27.060Whether it's the loss of a child in war, the loss of a home due to the economic collapse, they've suffered a sense of loss and still live with it.
00:01:35.480And they are the most susceptible to this virus of whether you call it white nationalism or people who just don't believe in government and want to overthrow any existing form of government.
00:01:48.420Yes, I think the sense, especially for older white men, that they can no longer define American society on their own terms, deeply antagonizes some people.
00:02:02.080Yet, I think when that leads to violence, it is so off-putting to the majority of Americans that it's a losing position.
00:02:52.360By the way, people have been screwed, and they've been screwed by the Uniparty elite through the Federal Reserve and printing of money and crushing them economically.
00:03:00.640People are starting to awaken to that, as the Europeans are starting to awaken to the fact that the woke Green New Deal radicals have completely eviscerated their energy infrastructure, and now they're a society that's economically about to collapse.
00:03:41.720In the second block, we've got Mike Davis, a former secretary of defense called Donald, said what was found at Mar-a-Lago makes Donald J. Trump a clear and present danger to the country.
00:03:52.640He should understand when he was there, the secretary of defense, he was playing footsie with China.
00:03:57.780And as we know, the CCP is the clear and present danger to the United States of America.
00:04:09.360Steve Cortez does a great job and, you know, once in a while drops the depression bomb.
00:04:14.420And so I just want to go over the recurring story we've developed on the real economy is a carcass, a dead carcass laying there.
00:04:23.660And I'm going to go over a year in review and show some of the magnitudes of the number numbers that are in play in the tens of trillions of dollars.
00:04:34.440Right. And so if things do get off track and there's probabilities that it does, the big D word does come into play.
00:04:42.820And so I just want to start off with a fun quote and we can put up the first chart.
00:04:46.420The expected sugar rush from more stimulus is why the economy will run hot and then crash.
00:04:52.360As every parent knows, giving a child too much sugar leads to a rush of energy.
00:04:57.180Then comes the crash where you find them in some odd place taking a nap.
00:05:01.980Well, that's where we're heading. Here's J.P. Morgan.
00:05:05.420The black line is the government stimulus going up into the six trillion dollar range to the right of that graph in 2020 when the economy is shrinking, the gold bar below it.
00:05:17.340OK, so then that huge input of government spending causes some economic growth in 2021.
00:05:25.220The question is, is that economic growth?
00:05:27.420So you have all of that government stimulus and it still stays quite high into 2022.
00:05:33.140And of course, now we're back down into a recession with two quarters of negative GDP growth.
00:05:40.400And so in the midst of this, you know, J.P.
00:05:43.340Morgan and everyone back in 2021 is calling for a surge in economic activity.
00:05:48.240That was a surge in consumption, which is not the same thing as economic activity.
00:05:53.380And that's that's what I'm trying to show in in this set of charts.
00:05:57.880The next graph shows why more than a decade after monetary and fiscal stimulus that adds to thirty seven trillion dollars, thirty seven trillion dollars.
00:06:11.640This is what the real economy would look like shrinking at eight trillion by 2020 without any of that monetary or fiscal stimulus, which shows the the pit in the stomach territory that we're looking at.
00:06:27.060Another graph next one up shows the same thing looking at government assistance.
00:07:23.280If interest rates rise, which they are, and now the Fed is committed to raising rates and we'll see if they've got the stomach and the discipline, what's at stake?
00:07:36.340This graph shows GDP growth at the bottom, the gray line, and then the growth of all debt, right?
00:07:43.180Government, consumer, business debt at now seventy five trillion dollars.
00:07:48.920With interest rates growing, that is the problem that puts a pit in your stomach.
00:07:55.600And then one of the things I have ignored, I probably shouldn't have, but that gold line is velocity, the velocity of money.
00:08:04.780That thing, if you look at the right index, the right vertical axis, velocity has gone from two down to one.
00:08:12.760That line should be going up, showing a vibrant economy.
00:08:16.720Instead, it's going down, showing a non-vibrant economy.
00:08:20.640But if you know your macro, right, the Milton Friedman equation is MV equals PQ.
00:08:37.180But when you have a factor of two on that chart down to one, what that means is the Fed has to print twice as much money, twice as much money, M2, to make up for that decline in velocity.
00:08:51.640So that's the Fed just spastic behavior over the last years, throwing money out there.
00:08:58.660Then we start hooking this up to the real economy.
00:09:03.300As the Fed withdraws that money, the banks are going to have to provide credit in some massive way to make up for the drop in money supply.
00:09:12.900And so we're and this is just concluding last year's story.
00:10:47.000And I don't like paying attention to the stock market because it kind of distracts from the real economy, but it's the only thing that catches the headline.
00:10:56.000And so you see what the headlines are going to be.
00:10:58.600They're going to be earnings are going to get crushed coming up.
00:11:13.940Is the real economy doing all right or not?
00:11:18.720So here's an economic output composite index made up of all the indicators of real GDP from the Federal Reserve to the Chicago Board to the consumer sentiment and all these indices put together in one output index.
00:11:36.020And you'll see at the far right, that output index is perfectly lined up with the leading indicators and it's going down, down, down.
00:13:39.840The looming credit crunch, particularly as it relates to corporate junk bonds or corporate high-yield bonds, we've shown that chart before, the HYG, which is the ETF that tracks that, it signals enormous trouble ahead, not just for consumers, but also for the corporate sector.
00:13:56.340Now, and by the way, what I mean by that, when it starts triggering defaults, that's going to lead to the layoffs.
00:14:02.240Because the first thing they're going to cut is people, right?
00:14:04.560Keep people and buying goods and things which will trickle down through to the other companies.
00:14:14.540We've got a whole segment with Brother Davis, right, former Secretary of Defense, calling Donald Trump a clear and present danger.
00:14:23.420But we're going to get back quickly to the zombie economy, particularly Dave Bratts points out about transfer payments and about tens of trillions of dollars.
00:15:01.460When your nation's supposed authority on economic policy completely misses the flashing red lights of impending inflation.
00:15:10.340Now, Treasury Secretary Janet Yellen has finally admitted, quote,
00:15:13.980Quote, there's been an unanticipated and large shocks to the economy that have boosted energy and food prices and supply bottlenecks that affected our economy badly that I didn't, at the time, fully understand.
00:17:26.740September 30th, the end of the year, we're going to play the same game.
00:17:29.600The continued resolution just to kind of get your eye off the ball.
00:17:33.580Your analysis about the 6 trillion or the 35 trillion, that's the nub of the problem is that you've got a business model that is not financeable anymore, and you don't have anybody with the courage to step up and say that.
00:18:07.960I would have voted against that inflation bill because it causes inflation.
00:18:11.780So all the things coming out of the federal government sound good.
00:18:14.520They're crushing your life right now, right?
00:18:16.580The Fed needs to get on a Taylor rule, the Federal Reserve.
00:18:19.960The federal government needs to be downsized.
00:18:22.300And people need to stop going along with these charades where you're promised free goods and green energy and all this while you see energy in Europe collapsing.
00:18:32.040Whatever is happening in Europe is coming our way in a year or two.
00:18:35.140It takes our socialists a year or two to copy that perfectly.
00:18:39.360By the way, I think the European energy crisis, the contagion, is going to come much quicker than that.
00:19:40.480The Democrats will believe that the easy choice or the supposed solution is spending more money, which will only exacerbate what is already an historic inflation pinch upon working class America.
00:19:51.260They're going to come out and say that's the empathetic, and actually it's going to destroy the working class and middle class more.
00:20:48.540And if we live in a country guided by feelings instead of reason, you get what you get, which is about come and do, as I'm sure Cortez is going to hit coming up here.
00:20:59.500Dave Brat, honored to have you on here.
00:21:01.140I know you've got a lot to do down today at Liberty.
00:21:02.980Thanks for joining us to kick us off today.
00:21:17.700And so what is your reaction when you just hear the details, the list of the hundreds of classified documents, the latest reporting from The Washington Post that Donald Trump, now a private citizen, out of office, had all this at his beach resort in Florida?
00:21:32.040I think you've been asking the question why.
00:21:38.260The fact that he had those documents in his possession is offense enough, subject to perhaps criminal prosecution.
00:21:47.060If I had had those in my house after leaving office, I would be in handcuffs by this time.
00:21:52.420And so I think the Justice Department has gone out of its way to show deference to the former president that no other president in the history would have behaved in this fashion or had behaved in this fashion.
00:22:04.760So I think the Justice Department is going about it very methodically, very deferentially.
00:22:11.700I go back to the January 6th committee where it was a judge, I think his name was Ludwig, a very conservative judge.
00:22:23.700He said that Donald Trump was a clear and present danger to democracy.
00:22:29.720That is confirmed over and over by these revelations.
00:22:33.600The notion that the former president had documents, highly classified documents in his possession and unsafe circumstances or any circumstances puts our nation at risk, potentially.
00:23:01.720Mike Davis, is Donald J. Trump, from what's been revealed at the raid and ransack of Mar-a-Lago, is he a clear and present danger to the nation, sir?
00:23:12.660And Bill Cohen, who was President Clinton's secretary of defense, is a blowhard.
00:23:17.020And he said that if he were, if he did this, he'd be in, he'd be in handcuffs.
00:23:21.740Well, yeah, because he was not the president of the United States.
00:23:24.440As we've been saying since this raid happened five and a half weeks ago, whatever it was, that the president has the absolute constitutional power to declassify anything he wants.
00:23:36.900He has the absolute statutory authority to keep these records in the office of former president at Mar-a-Lago.
00:23:44.760They get Congress provides former presidents with staff, with security clearances, with secure office space or SCIFs, Secret Service protection to guard the paper records.
00:23:56.240It is the Presidential Records Act does not distinguish between classified and non-classified records because presidents, former presidents, are expected to have classified records in the office of former president.
00:24:08.760That's why they get these protections.
00:24:11.120And we have to remember, Cohen's boss, Bill Clinton, took eight years of audio recordings of his presidency, including highly classified conversations that he had with foreign leaders and military advisors and intel advisors.
00:24:28.280Bill Clinton put those in his sock drawer.
00:24:34.780There was no intel assessment by the politicized DNI.
00:24:39.940There was no pearl clutching that we're seeing now.
00:24:43.560It's because the Presidential Records Act specifically contemplates that former presidents have these things.
00:24:49.860And all this is about is they're trying to get Trump.
00:24:53.180They know that if Trump runs again, he's going to win the primary.
00:24:57.040He's going to beat Biden like a drum of Biden.
00:24:59.780Biden can even make it to the next election.
00:25:02.160And that's what this is all about is it's about politics.
00:25:05.560And it's about getting back Trump's declassified copy of the Crossfire Hurricane records that Trump clearly declassified with his January 19th memo before he left office the next day.
00:25:16.960And that those records are so damning for for Obama, Biden, Hillary, Susan Rice, Clapper, Brennan, the FBI, the intel community, because it shows that they made up this Russian collusion hope to influence the 2016 election.
00:25:49.720You know, it's Bill Barr's such a disappointment here.
00:25:52.200I was actually the chief counsel for nominations, then chairman Chuck Grassley, when he was when Bill Barr was going through to be the attorney general again.
00:26:00.240He is he was such a disappointment as attorney general.
00:26:02.880He for six months from June of 2020 until he left in December, he let BLM and Antifa destroy American cities.
00:26:11.700Dozens got killed, billions in loss, cities destroyed, police couldn't do their jobs, and Bill Barr was hiding under his desk.
00:26:22.680And for him to come out now, maybe it's just because these guys have such huge egos that he can't stand that he's not the center of attention anymore.
00:26:31.920Maybe he's better that that he had a falling out with Trump.
00:26:37.680Who knows? But Bill Barr is just 100 percent wrong as a legal matter as it relates to President Trump's constitutional power to declassify records under Department of Navy versus Eagan in 1988.
00:26:53.400He's Bill. Bill Barr is absolutely wrong about President Trump's statutory power under the Presidential Records Act to have these these records at Mar-a-Lago.
00:27:03.080He can make personal copies. He can take personal copies.
00:27:05.840He's Bill Barr is just wrong, but he doesn't. His ego is too big to for him to admit that he's wrong.
00:27:14.660The judge and everything in the judge said is backed up what you said.
00:27:18.160Is this is this investigation basically over even Vandy Fair said it's going to be now you have a special master.
00:27:24.040It's going to be months or even years to get this investigation in the 30 seconds.
00:27:29.280Mike, is this thing essentially dead in the water?
00:27:30.920Yeah, I mean, yes, they don't have a case.
00:27:34.140There's not it is legally impossible for President Trump to have violated the Espionage Act or these government property statutes that do not apply here because the Presidential Records Act applies.
00:27:43.860And you can't obstruct investigations into non crimes.
00:27:47.060You can't obstruct investigations into investigations that the federal government has no business investigating.
00:27:53.360Right. So this is this is a political charade.
00:27:56.260Canon's Canon's Canon's order is going to let the special master pull this over real quickly.
00:28:01.560How do people get to you at Article three?
00:32:08.020Fentanyl overdoses and poisonings right here in Austin, Texas.
00:32:11.040In fact, in Hayes County, just south of here, which I represent, we had three kids die in the last month because of these fentanyl poisonings.
00:32:17.040We had a University of Texas football star last year die from taking Xanax-laced with fentanyl.
00:34:51.960We're going to have a fight over this.
00:34:53.180And you're not going to get another frigging dollar of taxpayer money or borrowed money or printed money to go spend to advance a Democratic agenda unless we get what we need to do to secure the border of the United States.
00:35:04.200I think there's some other things like vaccine mandates and some other crap that we ought to deal with.
00:35:31.820Congressman Roy, do you agree that this is the best thing we can do for Hispanic Americans, that if we were really tough in this, that Hispanic Americans would start to vote MAGA and start to vote Republicans in overwhelming numbers?
00:35:46.700Look, President Trump was so extraordinarily popular in motivating people because he stood up and fought and he actually did what he said he would do.
00:35:53.940And so Hispanic Americans were flocking to the Republican Party.
00:35:57.060Now they're kind of going, well, is this Republican Party going to stand up and fight or not?
00:36:00.540And we need to actually stand up to defend the very communities that attracted people to come here.
00:36:05.700People don't want to come here if we're a lawless society without the rule of law.
00:36:10.360Hispanic Americans want a secure border.
00:36:13.260Hispanic Texans in South Texas are speaking loudly.
00:37:37.400Yes, and listen, I want to reinforce people and encourage them.
00:37:40.560We are in the early innings of this secular shift of working class people of all races and ethnicities.
00:37:46.700But right now, we're focusing on Hispanics, on their move to the political right.
00:37:50.320I'm glad that Congressman Roy, who has just been a champion for American sovereignty, I'm glad he mentioned specifically Zapata County, which is on the U.S.-Mexico border.
00:37:58.660Donald Trump, between 2016 and 2020, he rallied 38 percent on margin in Zapata County.
00:38:13.120Steve, you know dang well that those kinds of moves in only four years in presidential politics are absolutely unprecedented.
00:38:20.240And that is proof positive that we have the winning message and that Hispanics rally to the combination of cultural conservatism plus economic populist nationalism.
00:38:29.060And a key component of that nationalism is a secure border.
00:38:32.500And, Steve, speaking of nationalism, I'm so glad that you played that tape from Mexico.
00:38:36.460That video was put out by a very leftist organization, a large one with over a million followers on Twitter.
00:38:43.360And it's interesting because they sound a lot like Mexican nationalists demanding sovereignty over their country and over their capital city, Mexico City, which the locals refer to as Defe.
00:38:54.560And, by the way, I say to those Mexican nationalists, viva Mexico.
00:39:20.060They complained about ignoring cultural and social norms.
00:39:23.060They complained about these Americans in Defe speaking in a foreign tongue.
00:39:28.000These are the legitimate complaints of a sovereign people in Mexico City.
00:39:32.780And, again, they have every right to make these assertions.
00:39:36.100And there's nothing bigoted or racist about it, not when Mexicans say it in Mexico City, not when Americans say it anywhere in the United States.
00:39:44.080This idea of globalist uncontrolled migration only works for the Davos-affiliated ruling class.
00:39:50.920It is terrible for working class people.
00:39:53.620And, again, that's just as true for Mexico as it is for the United States.
00:40:26.360No, it's the worst thing that America could possibly export, right, are these elite laptop class warriors who are now able to work from anywhere in Mexico City.
00:40:35.040Being in a U.S. time zone, a much more affordable city than places like Los Angeles or San Francisco in the United States, is understandably attracting a lot of these folks.
00:40:45.140The salt of the earth Americans, the kinds of people that they might actually welcome, people who work with their minds and their hands, they can't work from anywhere.
00:40:52.340They can't simply go to Day F.A. and post up.
00:40:55.300But, you know, Steve, I also think that this is a good introduction to another point, which is the New York Times.
00:43:57.180We're not going to have everything converted into dollars in our enemies that now,
00:44:01.380because the Biden administration's policies have driven these, you know, Iran, Russia, China under the CCP's guidance to kind of control the Eurasian landmass.
00:44:10.540Now they're going to start doing it in their own currency, and that is going to be a major shift in American economic prosperity.
00:44:17.600Everything we've got going on, you've got to get this.
00:44:19.900Go to birchgold.com forward slash Bannon.
00:44:22.300You can get the original one, which is the politics of money,
00:44:24.640and now the new one about the fall of the dollar as the prime reserve currency.
00:44:50.920Right. Believe it or not, I don't often quote Barack Obama in the affirmative, but I certainly am here.
00:44:55.380And I have a new article up on my sub stack about this very topic of Joe Biden's atrocious abuse of the asylum generosity of the United States.
00:45:53.020Obama. And Steve, Obama is exactly correct there.
00:45:56.680The legitimate criteria to be a refugee who truly needs the protection of the American state.
00:46:02.880And we have always had a generous heart for those people, for people who are legitimately fearing persecution because of their race or their religion or their political beliefs.
00:46:11.180That is a very narrow set of criteria.
00:46:13.860And living in a bad neighborhood, living in a scary neighborhood, not having economic opportunity, none of those circumstances qualifies for asylum.
00:46:39.020Because the globalists took away their factories and sent them over to China.
00:46:42.900So millions and millions of Americans live in tough neighborhoods or face tough circumstances.
00:46:48.600That can never be the criteria to usher into the United States one million unvetted and uninvited migrants who trespass, who break and enter into our country to receive generous benefits.
00:47:01.920Steve, getting back to this New York Times story, it was appalling to me to read about just how lavish, really, the benefits are for these folks.
00:47:09.600When they get to the United States, they stay in hotels.
00:47:14.800Their children attend U.S. public schools.
00:47:17.620Tell me how this serves the interest of working-class Americans.
00:47:21.420And, Steve, it would be wrong at any time.
00:47:23.420But it is particularly wrong at a time like this, of historic economic duress, when American citizens are struggling just to pay for the necessities of light.
00:47:34.420The idea that Joe Biden incentivizes and welcomes five million illegals to come into this country, one million of them under the guise of asylum-seeking.
00:47:43.900Steve, that alone, to me, is justification enough to impeach this totally illegitimate President Joe Biden.
00:47:51.180I think this invasion, what it is, will be the first article of impeachment.
00:47:55.840I think the Hunter Biden situation will come.
00:48:39.640Two – and I'm quoting from the New York Times article – 200 housing units for asylum seekers in the Portland area are being constructed to provide rental assistance for two years.
00:48:50.500Not for Americans, not for working-class Americans who are having a hard time because of the Biden recession and the Biden inflation explosion.
00:49:56.180We're going to go back to the Board of Education Conference.
00:49:58.420We've got Mike Lindell talking about the machines.
00:50:01.200We're bringing in some technical people so you can understand what they're talking about in this Mesa, Colorado, this big report, the number three report.
00:50:08.080Charlie Kirk, a lot going on in the second hour.
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