Latest episode of The War Room - Stephen K. Bannon and John Avlon discuss the latest economic numbers, the latest virus outbreak, and the upcoming mid-term election. Plus, a look at why the bond market is calling BS on the GDP numbers.
00:04:47.780You've got, last night, one of the tales here is, I think, some source-backed organization or something.
00:04:52.480Nancy Pelosi came and bought $10 million of TV ads in New York City.
00:04:57.720They're that afraid of losing the governorship to Zeldin and losing a bunch of these house seats in Long Island and around the New York City area.
00:05:19.380But if you could, Ron, give us in the most basic terms what the Democratic message on the economy is, what you hope voters will take in in these final days before the midterms.
00:05:31.560Well, look, first of all, thanks for having me, Mika.
00:05:34.000And look, what you're going to hear the president say today is three big things about the economy.
00:05:39.660First, the economy, we are making progress on the economy.
00:05:43.660It's not just the GDP numbers you mentioned.
00:08:08.620Regarding wages and real wages are what matter, meaning wages adjusted for inflation.
00:08:13.180Because you may be getting a pay increase, and I certainly hope you are, but if it's not enough to keep up with the rising price of all the goods and services you need to buy in your life,
00:08:21.200then you are actually getting poorer every single month.
00:08:23.680Real wages have now declined for 18 straight months, Ron Clayton.
00:08:28.740That has never happened before in American history.
00:08:31.780Let me tell you something else that hasn't happened before in American history.
00:08:34.120The first three quarters of this year, the stock market went down and the bond market went down.
00:08:40.800Literally unprecedented in all of American history.
00:08:43.920Regarding gasoline, I want to fact check him on this as well.
00:08:46.580Because they love to talk about the fact that gasoline is coming down.
00:08:49.900Yes, it is coming down from the stratospheric highs that we reached during the summertime.
00:08:55.120However, let's look at where it is relative to where they began.
00:08:58.640The handoff from Donald Trump to Joe Biden was an economy that was recovering with gusto and with contained low inflation, including low gasoline prices.
00:09:08.280The national average when they took over was $2.35 a gallon.
00:09:12.400Ron Clayton is trying to beat his chest right now about it being $3.39 on a national average.
00:11:54.580It's not the way the bond market is supposed to operate.
00:11:56.760The bond market gets into inversion when bond traders are convinced that there's out-of-control inflation combined with a dismal economic outlook going forward.
00:12:06.360So the bond market's opinion is way more important than Ron Klain's.
00:12:10.180It's more important than Steve Cortez.
00:12:12.120And the bond market is telling us recession.
00:12:15.080The message you're going to hear, we're taking the number two principle out and write down soft landing.
00:13:12.700And listen, that's how they're going to spin it.
00:13:14.240And once again, when you have an absolute torrent of horrendous economic news, the second you get a number that is OK, of course, you're going to absolutely tout it to the nines.
00:13:29.760You know, and I've said this before, and I think it's an important reality.
00:13:32.180You can spin people about certain things.
00:13:34.240For example, in the early days of the war in Ukraine, I think the corporate media did a decent job of spinning that situation as if it was sort of this pure showdown of pure evil against pure good over in the Black Sea.
00:13:45.720You can spin people about certain things.
00:13:47.660You cannot spin people about their economic reality because they know their own bank account.
00:13:52.920They know the fact that when they go to the gas station and put that credit card in the pump, they are cringing.
00:13:57.720They're cringing because of the price they're going to pay.
00:13:59.740And they're wondering if the credit card is going to go through.
00:14:29.600We've got Richard Barris later about polling.
00:14:32.080We're going to talk about they're trying to spin the cyborg Fetterman's performance, humiliating the performance the other day, trying to spin that.
00:15:01.460When your nation's supposed authority on economic policy completely misses the flashing red lights of impending inflation.
00:15:09.360Now, Treasury Secretary Janet Yellen has finally admitted, quote, 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.
00:15:28.660You know who understands the real threat of inflation?
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00:16:25.840War Room. Pandemic with Stephen K. Bannon.
00:16:29.460The epidemic is a demon, and we cannot let this demon hide.
00:17:38.720John Fredericks, you tell us where you are in New Hampshire.
00:17:40.780And the people in New Hampshire, are they feeling the Biden economic turnaround that the White House is touting this morning?
00:17:46.880Or where do folks, where do Granite Stater stand, sir?
00:17:50.060They're afraid of the coming winter, and they're not going to be able to heat themselves, and they have to choose between heating and eating.
00:23:13.960He had to know that he would get the kind of reception that he got from that.
00:23:21.500Being the son of a man who had atrial fibrillation and had a stroke, I know how much work it takes to recover, and I admire Mr. Fetterman's determination to do that.
00:23:37.180But he's obviously had a pretty significant neurologic injury.
00:24:09.960This is a tactical and strategic move.
00:24:12.160If MAGA comes out for Oz right now, full bore, Oz is going to be the senator, and Oz is going to help Mastriano get across the finish line.
00:24:19.460John Fredericks, just to reiterate, you're going to Vermont to help Malloy.
00:45:42.420And this is a populist nationalist machine down in Brazil.
00:45:45.960Of course, the FT ain't happy about that.
00:45:47.620But it's predicated upon, wait for it, evangelical Christians.
00:45:52.060And in this article, which is amazing, we're going to get Terman on at the bottom of the hour.
00:45:55.940It talks about, it's so powerful what Bolsonaro has built around the evangelical movement that even Lula, who's a hardcore Marxist, CCP, transnational criminal,
00:46:08.700is actually had to make inroads to try to thwart the power of the evangelical Christians in Latin America.
00:46:17.140And I've got to tell you, as heavily Catholic as those countries were, and Cortes knows this, I've got to give a hat tip to the evangelical movement.
00:46:25.220It has been on fire in Latin America, and it has turned into a political force for good in Brazil.
00:46:32.820This election on Sunday, but if you're an evangelical Christian or traditional Catholic, got to go all in on Sunday for this incredible race between a hardcore atheistic criminal Marxist and Lula and Bolsonaro, who is the forces of light.
00:46:49.700And it's going to be a, this is going to be a heavyweight title fight, all hurtling towards its conclusion.
00:46:54.620Bolsonaro, as Cortes knows, by the corporate media was down seven, talking about polling, was down 17 points, quote unquote, before the, before the first round.
00:47:05.180So this one, Terman's going to be on, we're going to be covering this nonstop.
00:47:08.300This is why Getter is so important because the media down there is all locked up by the Supreme Court.
00:47:13.500We've got the voice of Getter and we're getting huge audiences on it.
00:47:25.060Yeah, there's some fascinating details in here.
00:47:27.240And by the way, just to put this in context, because Rich Barris mentioned how it is now R plus four, the Republican generic ballot is leading by four.
00:47:34.340In this same poll, it was R minus four as recently as July.
00:47:38.440So we've seen an eight point move on generic ballot.
00:47:41.820That's a massive move in just a few months.
00:47:44.320And I believe it's primarily because of inflation.
00:47:46.060And I say that, and here's my evidence to back that up, because also within this poll regarding what, what Rich mentioned about the people of the United States,
00:47:53.700knowing that we are in a recession, this USA Today poll shows 66% of Americans say that we are right now in a recession or a depression.
00:48:03.340Two out of every three Americans, because they know what is happening in their own lives, Steve.
00:48:08.180They know what's happening in their bank account.
00:48:10.220They know that they can't afford things.
00:48:11.880According to Bloomberg News, one in six Americans right now is delinquent on their power bill, the most basic bill in any person's life.
00:48:20.120And they are facing, again, I'm quoting Bloomberg, a tsunami of shutoffs.
00:48:25.680And that reality, by the way, of course, is even worse for minorities.
00:48:29.360So when we talk about Hispanics rallying to the America First agenda, I'm most enthused, of course, because they're attracted to our muscular sovereignty and our economic populist nationalism.
00:48:38.780But let's be honest, too, it's also because they are suffering right now.
00:48:43.440And that is also reflected in this poll.
00:48:45.960If we look within Hispanics, within the USA Today poll, six out of 10 Hispanics say that they are forgoing or canceling vacation.
00:48:54.240Six out of 10 said that they are driving less right now.
00:48:58.20044% of Hispanics in the USA Today poll say their top issue is the economy.
00:49:03.840You know, Hispanics, Steve, one of the things I'm really proud of of the Hispanic community is that we are the most entrepreneurial demographic by far in America.
00:49:10.700We love to start new businesses, mom and pop operations that we hope become much bigger than that.
00:49:16.140Well, Joe Biden has crushed entrepreneurialism in America.
00:49:20.020He has smashed small business because inflation, it's a problem for everybody.
00:49:24.020But it's a killer for small businesses, many of whom are run by Hispanic Americans.
00:49:29.220And that's being reflected in the details of this poll.
00:49:31.900It's part of the reason why, Steve, and look, this is not my nature to just sort of gush with optimism about something that hasn't happened yet, about an election that is still days away.
00:50:25.780We want to hold them to get the big scoops when you break them.
00:50:28.560But what's your sense that you're in the field again from the first time that you did it, sir?
00:50:34.420From the first time we did it, if people remember, I was showing them, you know, the margins that we had found at the time, but really focusing heavily on who was still undecided.
00:50:48.520Did they care about abortion or did they care about inflation?
00:50:51.180And from people, you know, from their recollection, they should remember this was these were people who overwhelmingly disapproved of the job Joe Biden was doing and were negative on the economy and they were voting on the economy.
00:51:03.360So the results that we're going to that everyone's going to see real soon shouldn't surprise anyone.
00:51:08.780And I want to just say I want to if I have time to just add this real quick, you know, we're talking about Bolsonaro and in Brazil and these conversions to evangelicalism.
00:51:17.580There's some traditional Catholics, Hispanic Catholics that are upset with the Catholic Church and have moved over to Protestantism.
00:51:24.220We have this effect in in the United States as well.
00:51:28.900And it bigly really in Texas and Florida.