Bannon's War Room - March 14, 2023


Episode 2584: It Is No Time For Another 2008 Bailout


Episode Stats

Length

54 minutes

Words per Minute

177.74008

Word Count

9,743

Sentence Count

677

Misogynist Sentences

4

Hate Speech Sentences

6


Summary

It's the most dangerous time in world history since the late 1930's and early 1940's. We have two converging crises, a crisis of capital markets and economics, and an economic and geopolitical crisis, and they're converging rapidly, and once they conflate, they're going to spin out of control.


Transcript

00:00:00.000 this is the primal scream of a dying regime pray for our enemies because we're going medieval on
00:00:10.940 these people here's not got a free shot all these networks lying about the people the people have
00:00:17.540 had a belly full of it i know you don't like hearing that i know you try to do everything
00:00:21.300 the world to stop that but you're not going to stop it it's going to happen and where do people
00:00:24.880 like that go to share the big line mega media i wish in my soul i wish that any of these people
00:00:32.700 had a conscience ask yourself what is my task and what is my purpose if that answer is to save my
00:00:40.640 country this country will be saved war room here's your host stephen k bann
00:00:47.900 weathering storm the storm is here the storm is here this is the most dangerous time in world
00:01:02.840 history since the late 1930s early 1940s and how did we get here our betters our elites let us here
00:01:12.240 step by step by step what you have now is you have two converging crises a crisis of capital markets
00:01:22.200 and economics and a crisis of geopolitical and military and they're converging very rapidly and
00:01:28.540 then they're going to conflate and once they conflate they're going to spin out of control
00:01:33.220 and it's anybody's bet now remember we came off of on 3 november of 2020
00:01:41.400 four years of peace and prosperity
00:01:45.640 the interest rate the interest rate the 10-year treasury at in the evening of 3 november when fox
00:01:57.360 news illegitimately called it for the opposition and not donald j trump of which our of which our
00:02:05.820 nation has never recovered of which has never recovered the interest rate in the 10-year
00:02:10.940 straight was 0.8 percent 0.8 percent today for the first time and god knows when the entire
00:02:20.000 structure of our interest rates from one month treasuries to 30-year treasuries went over four
00:02:26.000 percent do you understand that the system is set up of debt it cannot take those type of interest
00:02:33.280 rates you will be absolutely crushed and the people crushed the most are the millennials that not now
00:02:39.020 have nine trillion dollars of debt you are they are going to be russian serfs they're not going to
00:02:45.160 own anything with no possibility of owning anything professor robini just told us about about the financial
00:02:51.820 aspects of it we're going to have recession inflation stagflation depression debt crisis dr doom who
00:02:58.720 called 2008 said it's only going to get worse because the world's got 30 trillion 300 trillion
00:03:04.800 dollars of debt now let's talk about the united states right what do we have 32 trillion dollars that
00:03:10.760 that's nothing the cbo reports you're going to have another 20 trillion dollars of debt in 10 years
00:03:16.440 you're going to be paying a trillion dollars a year in interest payments it's not sustainable
00:03:22.520 who got us here with joe biden yeah but he got here because of the compromise made by the
00:03:29.900 establishment republicans in the senate they took away the gavel from you what are they doing right
00:03:36.400 now you need dramatic you need dramatic dramatic cuts you need dramatic cuts in spending right now
00:03:42.420 and not one penny increase to the debt ceiling not one penny if you prioritize the payments if you
00:03:50.880 prioritize the payments the can there's plenty of cash the cash comes in we pay off the interest we pay
00:03:56.040 off any securities that come due we never default in the debt ever we pay off social security and
00:04:01.280 medicare and then we have to have a conversation right we have to have a conversation it's not an easy
00:04:06.940 conversation all the easy decisions of decades ago uh we we know the president you know had to be sort
00:04:13.740 of convinced over the weekend to get this done uh but was was told look the risk of a contagion was
00:04:18.780 was so high they felt like they had to do something uh and he emphasizes helping small businesses rather
00:04:24.400 than you know the crypto community and uh silicon valley but it's certainly instability we saw the markets
00:04:31.200 react yesterday what's the fear of perhaps global impact could there are banks around the world that
00:04:37.580 could be uh impacted by this well i think first of all there was i was here i lived in washington in
00:04:43.140 2008 in the global financial crisis and there was this is nothing like that but that kind of
00:04:47.540 sense of deja vu when you had reports over the weekend you know regulators meeting and then the
00:04:52.900 sunday night press release this this this brought back it was brought back terrible memories of that that
00:04:57.800 period i think there is a sudden recognition from this that actually you know the impact of the sharp
00:05:06.720 rise in interest rates which was sort of the underlying cause of um or part of the underlying
00:05:11.040 cause of silicon valley banks failure um that is going to have knockout effects and the reason that
00:05:15.720 you're seeing all of these bank share prices tumble is that there's a sudden kind of oh my goodness which
00:05:20.660 are the other weak links where are the other banks and in in in the aftermath of 2008 there was a very
00:05:26.480 big push to clean up and to strengthen the banking system to recapitalize it and to to really put in
00:05:32.320 rules that would prevent kind of you know major systemic risk from banks and what actually happened
00:05:38.280 was that you know that did that really did happen to some point but two things have happened since
00:05:42.960 then one is that there's been there was regulatory rollback in 2017 and 2018 and silicon valley bank
00:05:48.560 they lifted they used to have a limit of any bank which had more than 50 billion would have to be
00:05:53.920 subject to this extra regulation extra supervision and would have to have a plan in place for how to
00:05:59.400 deal with a crisis how to how to kind of deal with its own demise and silicon valley bank would have
00:06:05.360 been covered by that was covered by that but there was a big push in in the mid-teens particularly on
00:06:09.980 the trump administration that this was regulatory overkill it was too much of a burden for small and
00:06:14.020 medium-sized banks and therefore the limit was raised it was raised to 250 billion and silicon bank
00:06:19.640 was no longer covered and therefore it was able to kind of go on the bender that it did go on and
00:06:24.340 now the question is how many other banks are actually weaker than people thought they were
00:06:29.240 and that kind of question i think is going to be had around around the globe
00:06:32.740 again with cpi ahead of next week's fed decision on interest rates a lot of interesting internals
00:06:51.080 jim used cars we were worried about down to uh two eight a month yeah okay index for rent is up 0.8
00:06:58.860 and we've been just reading a lot of stories about how rent has peaked that's very important
00:07:03.760 uh lodging away from home well you know we're now hearing that maybe people are at their
00:07:08.240 last leg in terms of spending for going away uh morgan stanley on consumption and then airfare is
00:07:15.680 definitely a problem there's no doubt but if you're going to stop traveling as much or you could
00:07:19.580 say that united is saying the opposite airfares actually are still up and then i look at this
00:07:24.980 overall and i just say well it's not a great number it's not a spike the trend line's okay
00:07:32.300 it gives the fed ammo to be able to do 25 without making us feel like uh that they're going to put
00:07:38.800 the system under given the fact that we got the the somewhat explicit guarantee from treasure
00:07:43.520 and then maybe the most message is from the place of posting
00:08:12.200 And then maybe the most newsworthy response that we received was from Florida Governor Ron DeSantis.
00:08:17.600 DeSantis has well-known views on many topics, of course.
00:08:20.340 But until tonight, no one could really say with precision where he stood on the war in Ukraine, which is arguably the most important topic in the world.
00:08:27.480 And now we know.
00:08:29.540 DeSantis is adamantly opposed to the position that most Republicans in Washington have taken on Ukraine.
00:08:35.020 DeSantis is not a neocon.
00:08:36.760 Who knew?
00:08:37.200 Quote, well, the U.S. has many vital national interests.
00:08:40.500 DeSantis writes, securing our borders, addressing the crisis of readiness within our military, achieving energy security and independence and checking the economic, cultural and military power of the Chinese Communist Party.
00:08:50.680 Becoming further entangled in a territorial dispute between Ukraine and Russia is not one of them.
00:08:57.780 Without question, he writes, peace should be the objective.
00:09:00.820 The U.S. should not provide assistance that could require the deployment of American troops or enable Ukraine to engage in offensive operations beyond its borders.
00:09:10.500 F-16s and long-range missiles should therefore be off the table.
00:09:15.020 These moves would risk explicitly drawing the United States into the conflict and drawing us closer to a hot war between the world's two largest nuclear powers.
00:09:23.240 That risk is unacceptable.
00:09:26.020 DeSantis goes on to oppose the policy of regime change in Moscow, which is very popular in Washington.
00:09:31.460 And he points out that the Biden administration has created an alliance between Russia and China, and that's a disaster for the United States.
00:09:38.380 Quote, we cannot prioritize intervention in an escalating foreign war over the defense of our own homeland, especially as tens of thousands of Americans are dying every year from narcotics smuggled across our open border.
00:09:50.240 And our weapons arsenals, critically for our own security, are rapidly being depleted.
00:09:54.920 So that's DeSantis' position, clarified.
00:10:00.100 Tuesday, 14 March, in the year of our Lord, 2023, in the converging crises, the geopolitical war on the Eurasian landmass, also our war with the Chinese Communist Party,
00:10:15.580 from Point Loma, where a submarine deal was cut yesterday, to Bakhmut, really the greatest battle of the 21st century, where Zelensky staked it all.
00:10:26.040 And you can't deny the courage and really resilience of the Ukrainian civilians and armies as they're getting pounded.
00:10:34.080 But the other part of that, the global meltdown in banking and finance and capital markets.
00:10:40.120 I've got Steve Cortez.
00:10:41.600 Senator Vance from Ohio is going to join us in a second, who's on the Senate Banking Committee, and obviously very concerned about the folks.
00:10:49.540 He's the first real politician to get out to East Palestine.
00:10:54.280 We're going to get to a second.
00:10:55.320 Cortez, this morning, as we've called it, the Biden, and people, look, it is woke.
00:11:00.880 They've got ESG, all of that.
00:11:02.940 That's not the main thing.
00:11:04.460 Don't be distracted.
00:11:05.420 That's all important, but that's not the main thing.
00:11:07.200 The main thing, as we've said, is the Biden, that $6.8 trillion budget they gave us last week, the spending from the beginning,
00:11:14.280 the overspending, the great increase in aggregate demand, inflation burning, the bonds getting crushed.
00:11:23.500 This is Biden bonds, Biden inflation to Biden bonds to Biden banks.
00:11:28.320 And now you've got, you know, you have $19 trillion of deposits, I think $5 trillion of uninsured deposits, I read last night.
00:11:36.220 Steve Cortez, the Fed is absolutely jammed, right?
00:11:40.260 They got two tough choices.
00:11:42.100 No more rate increases and let inflation burn through the working class in this country.
00:11:46.340 Right.
00:11:46.760 Or let it ride.
00:11:48.460 Your thoughts, sir, on this morning's CPI print.
00:11:50.920 Well, it was another terrible print proving now that real wages have declined for two straight years under Joe Biden.
00:12:00.260 I mean, think about that.
00:12:01.140 Americans are working harder to get poorer for 24 consecutive months now, the worst streak in all of American history.
00:12:10.800 That is the economic reality being experienced by Americans because of what Joe Biden and permanent Washington have done because of their massive policy failures.
00:12:20.920 And it's not just Biden.
00:12:22.260 He gets most of the blame, of course, and he deserves most of the blame.
00:12:24.840 But it's also collaborationist Republicans like Mitch McConnell, like Tom Cotton, who voted for that omnibus monstrosity.
00:12:32.440 OK, these are the real world consequences.
00:12:35.540 And this CPI report this morning, the headline number was bad.
00:12:39.060 The details, Steve, were even worse because the necessities of life, forget about the luxuries, the necessities of life are still rising at a double digit rate.
00:12:47.400 Things like groceries, OK, food at home, things like bread.
00:12:51.480 Bread was up 15 percent electricity double digit gains.
00:12:56.140 OK, the staples of life are rising dramatically.
00:12:59.160 And to your point, Steve, the Fed is now trapped because of the Fed raises rates to fight this inflation, which I believe it must.
00:13:06.960 But if it raises rates, it risks an even worse banking crisis.
00:13:11.060 So they are absolutely in a corner.
00:13:13.600 Yeah.
00:13:14.940 You have to understand, ladies and gentlemen, that we've come to this inflection point, as we told you we're going to come, because of the destruction of the economy, because of Biden's direct economic policies.
00:13:25.900 Please don't be diverted with the wokeness of these institutions are clearly woke.
00:13:30.480 It's a democratic ATM.
00:13:32.280 We know that.
00:13:32.840 We've talked about that for the last couple of days.
00:13:34.440 The central beating heart of this is the overall macroeconomic strategy of this country that can't continue on.
00:13:40.980 And now you've got this was a hop.
00:13:42.900 So you've got a hop.
00:13:43.420 So you've got a hop.
00:13:43.440 So you've got right now you're either going to burn down the working class with inflation.
00:13:47.640 That'll be out of control.
00:13:48.780 Or you keep it or you keep to kick up rates.
00:13:52.120 And you're going to have a total and complete collapse of the American banking system and the global banking system.
00:13:58.580 You're paying for these bailouts.
00:14:00.300 One thousand percent.
00:14:01.680 They're hiding with bank fees.
00:14:02.880 Remember, you add signatures.
00:14:05.160 Signature has 80 billion dollars of uninsured deposits.
00:14:08.740 You add that on to the 150 billion dollars at Silicon Valley Bank.
00:14:13.260 You have almost a quarter of a trillion dollars in uninsured deposits that you're backing up.
00:14:19.220 And that's just the start.
00:14:20.640 You've got six more regional banks are on the watch.
00:14:22.660 You've got Credit Suisse.
00:14:23.700 We've got it all.
00:14:24.240 OK, short break.
00:14:25.580 Senator J.D. Vance of Ohio, the first person to really go out and say,
00:14:30.140 Hey, East Palestine has to have a voice.
00:14:33.840 He's also on the Senate Banking Committee.
00:14:36.160 We're going to take a short commercial break.
00:14:37.540 He'll join us in a few moments.
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00:15:22.520 Here's the deal.
00:15:23.660 The Fed keeps raising rates because it's the only tool they have to keep inflation under control.
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00:16:16.420 Here's your host, Stephen K. Bannon.
00:16:22.380 Okay, welcome back.
00:16:23.760 We have Senator J.D. Vance.
00:16:25.180 Senator Vance, we've got a lot to do on East Palestine.
00:16:27.600 We'll get to you with you later on that because you're the tip of the spear.
00:16:31.480 Tell me about, you sit on the Senate Banking Committee, your thoughts of this debacle that's been created by Joe Biden, sir?
00:16:37.180 Yeah, well, first of all, of course, Steve, you have massively rising interest rates caused by the runaway inflation spending from the Biden administration.
00:16:46.420 That's putting a lot of pressure on a lot of local banks.
00:16:48.760 Now, that's not to defend the Silicon Valley Bank, which let's be honest here, Steve.
00:16:52.500 They got way out ahead of their skis.
00:16:54.580 Over 90 percent of their deposits were uninsured deposits.
00:16:58.920 And they just caused a massive problem in their balance sheet.
00:17:02.680 And here's what I want to talk about, Steve.
00:17:05.200 So there are two separate issues that are getting confused by the mainstream media and the establishment on this issue.
00:17:11.920 What happens to Silicon Valley Bank is one issue.
00:17:14.760 Whether we have a bank run and a financial panic is a second issue.
00:17:17.700 My view, Steve, is that we could have prevented a bank run without bailing out SVB.
00:17:22.880 And let's be honest, that's exactly what we did.
00:17:25.320 What we basically did is we're going to charge community banks higher fees to put more money into Silicon Valley Bank to bail out depositors.
00:17:34.540 I think that's a catastrophic decision.
00:17:37.200 And I actually talked to the Treasury Department, the FDIC, I believe, yesterday, Steve.
00:17:41.300 And the question that I asked them, and I did not get a good answer, was, are we now a country where there is not such a thing as an uninsured bank deposit?
00:17:49.320 Are you guys saying that you're going to backstop every bank deposit in the country, even when it's multimillion dollars from multimillion dollar tech enterprises?
00:17:59.200 They did not give me a good answer.
00:18:00.740 So we've got to be honest here.
00:18:01.960 We just created massive moral hazard in the financial system.
00:18:05.860 We basically said we're going to bail out any deposit or anywhere, no matter how wealthy they are.
00:18:10.960 That's going to cause a lot of risk, Steve.
00:18:12.940 And that's going to create some real, real systemic risk in our banking system.
00:18:16.360 So, Senator Bantz, you're breaking some big news here.
00:18:20.060 You mean you actually talked to the people of FDIC and they didn't give you – because there's 19 – I think there's $19 trillion of overall deposits.
00:18:27.300 I think there's $5 or $6 trillion of uninsured.
00:18:30.260 They didn't give you a straightforward answer as a member of the banking committee about what the logic is here and what their plan is?
00:18:37.260 No, Steve.
00:18:37.940 I said, is it now the official policy of the U.S. government to not allow any uninsured deposits?
00:18:43.460 And the person I spoke to basically said, well, we can't really answer that, Senator Bantz.
00:18:47.920 We don't have a good answer to that question.
00:18:49.760 There are a couple points, lines of investigation we need to attack here, Steve.
00:18:53.960 Number one is who exactly got the bailout?
00:18:57.040 There are a lot of foreign depositors at Silicon Valley Bank.
00:19:00.380 Are you meaning to tell me that community banks are going to be paying higher fees to send money potentially to Chinese depositors?
00:19:08.220 That is one possibility that comes from this.
00:19:10.480 The second thing, Steve, is how was the decision made to bail out SVB?
00:19:16.280 They could have stopped the bank run.
00:19:18.360 The Fed could have said, we will be the lender of last resort.
00:19:21.800 We're not going to let community banks go out of business without doing this to SVB.
00:19:26.280 How was the decision made to backstop not just our community and regional banking system, but also SVB, which got way out ahead of its skis, took on way too much risk,
00:19:36.320 and is now paying the price for it or should be paying the price for it?
00:19:40.740 You know, the FDIC is going to understand.
00:19:42.620 Right now they have – they've guaranteed unassured depositors of – you add signature in Silicon Valley, you're almost at a quarter of a trillion dollars.
00:19:51.020 You're at $250 billion unassured.
00:19:53.320 The FDIC of count, you know, line is I think $100 billion, $125 billion.
00:19:57.920 They're only halfway there.
00:19:59.160 The fees charged to average Americans, Senator Vance, is going to be enormous, and I've got to tell you, it is divine providence that we have a fire-breathing populist who is as smart as they get as J.D. Vance, Senator J.D. Vance, on the banking committee.
00:20:12.920 That was divine providence that you got that committee, sir, because you can be the voice of the working man and woman in this country that are basically underwriting this.
00:20:23.060 Is that correct, sir?
00:20:24.620 No, that's absolutely right, Steve.
00:20:26.040 Steve, you're right.
00:20:26.980 The way that this is going to get paid for, like I said, is by these excess fees on community banks, which means that when you go into your community bank and you notice that you're getting charged higher fees, that money is going directly to Silicon Valley Bank's uninsured depositors.
00:20:41.900 We can't overstate this, Steve.
00:20:43.780 We have basically a too-big-to-fail banking system, and what the Fed and the Treasury decided is that too-big-to-fail applies to Silicon Valley Bank.
00:20:54.180 It applies to Signature Bank.
00:20:55.960 It applies basically to the entire banking system except, Steve.
00:21:00.500 I bet that they would not bail out the small, mid-sized bank in Middletown, Ohio.
00:21:06.120 I guarantee that they're not going to bail out some of these farmers and local credit unions if they suffer financial problems because they're just not going to treat them the same, and they don't have the same well-connected friends in Washington, D.C.
00:21:18.380 And that's the lesson we've got to take from this.
00:21:20.860 Whatever you're going to do, you've got to tell people proactively.
00:21:24.920 You cannot change the rules after the game has already been played to bail out a lot of donors of Democratic special interests.
00:21:31.600 That's exactly what we just did.
00:21:32.860 East Palestine, Ohio, you have a voice in the banking committee because, trust me, if the bank in East Palestine went under, they would just sit there and go, hey, tough break for some swell folks.
00:21:43.180 Senator, we know you've got to bounce.
00:21:45.060 How do people follow you?
00:21:46.120 What are your coordinates on social media, and how do they get to your Senate page to find out more about you, sir?
00:21:50.960 Yeah, vance.senate.gov, Steve.
00:21:52.840 I'm on Twitter, jdvance.one, TruthGitter, all the big social media networks that go and find us there.
00:21:58.340 And, look, we are going to keep on hammering this issue.
00:22:01.740 It is ridiculous that you have the little guy bailing out the big guy again.
00:22:05.760 But that's the way that it works right now in the United States of America, not if I can help it.
00:22:11.160 Senator Vance, I can speak for the entire audience and all of MAGA.
00:22:13.980 Thank you very much for your courage in stepping in here because the banking committee is where the swamp meets.
00:22:21.820 So thank you, where the cartel meets.
00:22:23.300 So thank you, sir, for standing up for folks.
00:22:25.920 Thanks, Steve.
00:22:26.420 Take care.
00:22:26.740 Cortez, you said this when you were out campaigning with J.D. Vance, that this is what he was built for, right, this time and moment, sir?
00:22:35.080 And he understands the hour is late?
00:22:37.340 Yes, 100%.
00:22:38.560 He is exactly the kind of populist fighter that we need on Capitol Hill.
00:22:43.580 And J.D. Vance, very early in his tenure, he is already changing the United States Senate.
00:22:49.600 And he mentioned the additional costs of this bailout, right?
00:22:53.140 And this bailout only happened, J.D. is exactly correct.
00:22:55.720 This bailout only happened because of the political power of tech and the political power of California broadly, okay?
00:23:02.940 So this is because of Gavin Newsom.
00:23:04.500 This is because of the oligarchs of big tech.
00:23:07.040 As you correctly pointed out yesterday, Steve, on the show, the venture capital firms could have easily financed the near-term financial needs of this industry, okay?
00:23:19.640 This would not have been a systemically risky event had it been allowed to fail.
00:23:25.980 That's just reality.
00:23:27.380 They simply didn't want to.
00:23:28.520 They didn't want to go to their pocketbooks.
00:23:30.260 They didn't want to loot themselves out of some of their stakes of these firms.
00:23:33.800 And so they stuck it with the taxpayers.
00:23:35.780 But in addition to the actual cost, the explicit cost that J.D. talked about from community banks,
00:23:41.440 it's also important that we talk about the implicit costs, which, again, relate back to the CPI report that we got this morning.
00:23:47.360 And I mentioned previously the cost of bread.
00:23:49.640 Bread, up 15.8% from this morning's CPI report.
00:23:55.640 Groceries, 10.2%.
00:23:57.560 Utilities, 14.3%.
00:24:00.000 Electricity, 12.9%.
00:24:02.660 Steve, these are the necessities of life at double-digit rates of increase, impoverishing middle- and lower-income citizens.
00:24:11.960 And the Fed, because of what happened with SVB, the Fed is now trapped.
00:24:15.780 It's trapped.
00:24:16.580 To explain to people what this trap is, because this is probably more than anything else.
00:24:23.780 I disagree with Tucker.
00:24:24.820 Ukraine is monster important.
00:24:27.760 And I really appreciate, I want to tell everybody, I really appreciate this audience lighting me up.
00:24:33.220 I put up on Getter earlier, the Tucker clip about DeSantis saying, you know, get an old-time religion here about Ukraine.
00:24:42.700 And I want to give a hat tip to the audience.
00:24:45.140 They lit me up.
00:24:46.220 They said, hey, he didn't say cut off all the money.
00:24:49.520 I mean, they don't think he's a total convert yet.
00:24:51.600 We're going to get into that more later.
00:24:52.740 But the most important thing is where this jams the Fed, and we said this was going to happen, and it's not related to woke.
00:25:00.120 Woke is important here, but it's kind of a marginal issue.
00:25:03.580 The central beating heart is the cartel in this city.
00:25:06.760 In 18 collaboration as Republicans work with Biden, it was the spending first.
00:25:12.640 We said it was going to destroy the capital markets.
00:25:14.600 This is the bond market's revenge, is it not, sir?
00:25:18.120 Yeah, exactly, Steve.
00:25:19.200 And correct, listen, nobody hates woke more than Steve Bannon and Steve Cortez, okay?
00:25:23.900 We hate this corporate cultural Marxism from big business, okay?
00:25:28.720 We hate it.
00:25:29.380 We despise it.
00:25:30.260 It's ruinous for our country and for our society.
00:25:32.720 However, that is not the issue here.
00:25:34.980 And I think far too many people on the right, from the media appearances that I've watched and read, you know, over the last 24 hours, far too many people on the right are being distracted, okay?
00:25:44.200 SVB did not fail because of its wokeness.
00:25:46.820 It failed because of Joe Biden's inflation.
00:25:49.720 So don't major in the minors, okay?
00:25:51.480 Focus here, the signal, not the noise.
00:25:53.620 Focus on the signal.
00:25:55.260 Joe Biden's inflation spurred a bond market rout of epic proportions.
00:26:00.880 2022 was the worst year for treasury bonds in the history of the United States, in data going back 100 years.
00:26:10.080 And concurrent with that bond market route, stocks also got killed.
00:26:13.800 So I believe that in total, it was the worst capital markets year in all of history.
00:26:19.040 The consequences of that kind of portfolio destruction, the consequences include the failure of Silicon Valley Bank and now Signature Bank and what bank is next?
00:26:30.880 We don't know.
00:26:31.740 But here's the other consequence, Steve.
00:26:33.480 We have horrific inflation, and the Fed is now unable to try to fight that inflation because the Fed believes that if it does, it will tip the banks into an even worse crisis than they're already in right now.
00:26:47.360 So this is the trap.
00:26:49.160 This is the corner we've been putting in because of Joe Biden.
00:26:51.860 And you are the creditor's committee.
00:26:54.880 We mean this.
00:26:55.580 There's 19 – but they've given an implicit guarantee of $19 trillion of deposits, I think $5 or $6 trillion of uninsured deposits.
00:27:03.240 And the balance sheets on the other side are sitting on these government securities that are only going to get worse over time.
00:27:10.240 They have $600 billion of unrealized losses right now.
00:27:15.400 This is why you're in the middle of a banking crisis, and they've looked to you.
00:27:19.240 These fees, by the way, are coming right back to you.
00:27:21.260 The FDIC as we see it now only has at max $125 billion to cover these uninsured depositors.
00:27:28.960 If you just do the simple math, at the two banks, it's $250 billion right now.
00:27:34.000 I think $150 to $180 at Silicon because it still can't figure it out, $80 billion over at Signature.
00:27:41.400 This thing is out of control, and it's 1,000 percent the economic policies of the illegitimate Biden regime coupled with the support they got from the Greek chorus of the collaborationist Republican Senate led by Mitch McConnell.
00:27:56.780 Thank God, J.D. Vance and a couple of people there.
00:27:59.100 Okay, Cortez is here.
00:28:00.160 We've got Dave Bratt in the house.
00:28:02.280 We've got a lot to go through.
00:28:03.620 The Third World War starting ugly.
00:28:07.360 Starting ugly in the war room.
00:28:15.900 Citizens, the headlines are getting worse and worse day after day.
00:28:20.520 It seems like Armageddon could be just around the corner.
00:28:23.440 That's why I highly recommend you stock up on emergency food right away.
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00:29:20.600 MyPatriotSupply.com.
00:29:22.600 Here's your host, Stephen K. Bannon.
00:29:27.900 Okay, welcome back.
00:29:29.420 I want to make sure you go to Birchgold.com slash Bannon.
00:29:32.940 You got the third installment, the debt trap.
00:29:37.300 Everything's free here.
00:29:38.460 Everything's free at the Birch Gold, all the information, but particularly these monographs I'm putting out.
00:29:46.320 Let's call them that.
00:29:46.980 There's three of them now.
00:29:47.900 The politics of money was the first.
00:29:49.920 Talk about the founding of the nation all the way up to the founding of the central bank, the Federal Reserve.
00:29:54.960 Then the second is talk about the pressure of the dollar as the prime reserve currency.
00:30:01.320 And the third is now the debt trap will put you right in the seat.
00:30:04.280 I think the CPAC speech and the debt trap we worked on in December, I think they're aging well.
00:30:11.500 I think they're aging well.
00:30:12.480 And that's why, remember, we build this show around just one concept, to make sure that working class and middle class people in this nation get as sophisticated a breakdown of what is really important in the world, in the country, and in their world as possible.
00:30:27.720 No happy talk, no chasing shiny toys here.
00:30:30.840 And I really appreciate it.
00:30:32.120 I love the fact you guys are on it because you lit me up about this DeSantis thing.
00:30:36.580 We're going to get to that in a second.
00:30:37.600 I want to get – I got Brad in here.
00:30:39.520 Dave, there's a lot of controversy about what's happening right now with the capital markets and the economic policy, inflation, all of it.
00:30:48.540 A bunch of Reaganites are actually jumping in here.
00:30:51.740 Yeah, well, J.D. just laid out a little piece on the moral hazard yesterday all day.
00:30:55.700 You were saying who takes the upside, the rich, and who gets the downside, you, the taxpayers, on the hook.
00:31:00.620 And then Hankey this morning, Steve Hankey, professor –
00:31:03.120 Who's Steve Hankey?
00:31:03.900 Professor at Hopkins Reagan Economic Advisors.
00:31:06.800 Yeah, Ronald Reagan.
00:31:08.220 Yeah, Ronald Reagan.
00:31:08.920 Very good guy to follow on all this.
00:31:11.260 But he says the moves we just made over the past couple days in banking is leading the banking sector to become more of a public utility, right?
00:31:20.600 And so you can see this merger, right?
00:31:23.620 Everything's big now.
00:31:24.220 Give me that again.
00:31:25.040 Yeah.
00:31:25.460 The – Hankey says –
00:31:27.220 This is very important.
00:31:27.760 This move over the last couple days is turning the banking sector into a public utility, basically meaning that the government will regulate, right?
00:31:35.900 The critique out of the New York Times and Washington Post and everybody is it's a regulatory problem.
00:31:40.000 That's not true because this is an international phenomenon.
00:31:42.880 The same thing happened to all the banks because the Fed printed too much money.
00:31:46.060 You got inflation, the Fed's raising rates, and this particular bank made bad bets.
00:31:51.300 But when you're paying $6 trillion for a government, I don't mind – where's the regulation?
00:31:56.500 Ladies and gentlemen, understand something.
00:31:58.040 This is what you're paying for.
00:31:59.200 Make sure nobody spins you any other way.
00:32:02.300 You in this audience are 100 percent underwriting this.
00:32:06.060 They're going to charge you fees due to the community banks and others.
00:32:08.980 You're going to pay the fees, and right now there's a yawning gap.
00:32:11.500 But this thing was insolvent back in the fourth quarter of last year.
00:32:18.420 It has a leverage rate, 185 to 1.
00:32:21.900 A bank should have what, 3 to 5 to 1, an investment bank 8 to 1.
00:32:26.840 In the crisis of 2008, the investment banks were 20 to 1 to 35 to 1.
00:32:30.780 We understood that's one of the problems.
00:32:32.160 They became hedge funds.
00:32:33.720 This bank is not even a hedge fund.
00:32:35.200 It's like a fraternity house, sorority house, right?
00:32:38.180 It's outrageous what they did that – the regulators should have known this back a year ago, right, a year ago.
00:32:45.100 What was on their balance sheet and the unsecured deposits and all the other games they were playing, the regulators should have known it a year ago.
00:32:51.280 This shows you – in the Biden administration, you're going to find out – and this is why I want to get J.D. back on and talk to him at Banking Committee.
00:32:58.400 They knew this on Friday – they knew this, Cortez, and they waited.
00:33:03.720 The California regulators had to jump in here because the Fed was not moving on a federally chartered bank, and they didn't want to move because they wanted to get to the weekend and clean up the mess.
00:33:13.760 But J.D. Vance dropped a bombshell, and I want to make sure Grayson were pulling this and getting it out.
00:33:18.560 He dropped a bombshell on here.
00:33:20.780 J.D. Vance, a pretty smart guy, Yale grad, lawyer, best-selling author, and as smart as you can get, Cortez.
00:33:27.120 As you agree, you've got to go raw horsepower, and he's got common sense.
00:33:31.060 He sits down with the FDIC.
00:33:32.420 Understand, ladies and gentlemen, these are guys in charge of this thing, that reporter.
00:33:36.380 He asked them.
00:33:37.560 He says, hey, I'm looking here at some math.
00:33:40.200 Are you guaranteeing all deposits or even guaranteeing uninsured deposits?
00:33:44.920 That's $4 or $5 trillion.
00:33:46.120 What are you actually guaranteeing?
00:33:47.700 And they're in the mumble tank.
00:33:49.260 Well, really haven't – we're defining that now.
00:33:51.200 We're working now.
00:33:51.500 Screw you.
00:33:52.020 You stepped in and took a quarter of a trillion dollars and guaranteed it, including some to the Chinese Communist Party, right?
00:33:59.980 You didn't make the venture capital stuff here.
00:34:01.400 The Chinese Communist Party.
00:34:02.840 Cortez, how big a bombshell is that?
00:34:04.600 Because folks at home understand.
00:34:06.960 You're better – as I keep telling you this – give me the first hundred people that come to a Trump rally that were in Iowa last night with red ball caps on,
00:34:14.980 or give me the first hundred people I would meet on Main Street in East Palestine, Ohio, of any – just give me the first hundred,
00:34:22.980 and you will have a better-run government than you got with this set of clowns up here that you're spaying $6.8 trillion a year,
00:34:30.320 and you just gave them a 5.2 percent raise, Steve Cortez.
00:34:33.540 Yeah, and by the way, Steve, to that point, think of how astounding it is that no one in Washington has yet paid a price for these systemic failures.
00:34:42.720 The fact that Janet Yellen is still the Secretary of the Treasury, after lying through her teeth to the American people for years,
00:34:50.440 telling us that inflation was, quote, transitory, after supposedly being the leader of the American economy
00:34:56.980 and the American financial system during this systemic bank failure fiasco, she still has her job.
00:35:04.580 How is it possible that Jerome Powell is still in charge of the Fed,
00:35:08.820 which now faces an impossible quandary of its own making, by the way?
00:35:13.160 Nobody should feel badly for the Fed because it's in this terrible predicament.
00:35:16.300 It made its bed, right?
00:35:17.960 It allowed this inflation to get out of control, but it now has no good option in terms of fighting it.
00:35:23.400 But to your point, there are no consequences for the mavens of Washington, D.C., unfortunately,
00:35:29.840 and no consequences for the oligarchs because what we now have, and Senator Vance spoke to this point,
00:35:36.360 what we now have, unfortunately, is the American taxpayer, we do not participate in the upside, okay?
00:35:42.480 We do not participate in the privatized gains from the system, but we bear all the risks, the public losses, okay?
00:35:50.700 We bear all of the risks, and we enjoy none of the upside.
00:35:54.700 That is the reality of the oligarchy that prevails in 2023 America.
00:36:02.480 This is – we haven't learned anything from 2008, 15 years later, nothing.
00:36:06.900 Once again, you saps in this audience are going to – and you're stuck with it.
00:36:11.720 Here's how bad it is.
00:36:12.600 Remember, let's put a pin in.
00:36:13.560 We're going to come back to J.D. Vance.
00:36:14.580 That's a bombshell.
00:36:15.680 They could actually concoct this over the weekend, and they cannot give you a straight answer right now.
00:36:20.160 Now, answer the question.
00:36:21.680 Are we guaranteeing all deposits in all banks in the United States, all $19 trillion?
00:36:26.580 Or are we guaranteeing, I think, the $5 or $6 trillion of the uninsured deposits?
00:36:31.180 Pick them because you just – you gave Signature Bank, which had Barney Frank on the – one Barney on the –
00:36:36.880 you got Barney Frank, which is spreading his niceties, right?
00:36:40.540 You got Barney Frank, and you got the Democratic Party ATM.
00:36:45.440 I want to read something Politico, too.
00:36:47.060 And this is why you have to light up – I want a tidal wave of calls and angry emails.
00:36:53.240 Not angry.
00:36:53.820 I'm not going to tell you to do it.
00:36:54.540 Just calls and emails.
00:36:55.420 Just you guys to pick.
00:36:57.680 Politico is reporting about the conference call that the GOP had last night because my point is you don't see any –
00:37:02.440 where's the Republicans out here lambasting things?
00:37:05.080 Why has it got to be the war room?
00:37:06.220 And there's a quote from this thing.
00:37:08.080 Olivia Beaver's quote, but there is pressure from some within the GOP conference to come down harder on Biden and Democrats and lay the blame squarely at their feet.
00:37:16.740 House GOP conference share at least a phonic Republican pushback against comments in the conference in favor of lowering the partisan heat during the House GOP briefing last night.
00:37:28.740 Wait, you morons, if you can't understand this in a half hour, you ought to be turfed out of here.
00:37:34.940 The math is not that complicated.
00:37:36.660 The bond math here is pretty simple.
00:37:38.740 Where is McCarthy?
00:37:40.080 Where is the leadership?
00:37:41.980 This is a debacle, and your constituents have got a belly full of – we're not getting down in here, which you guys did in 2008, and stiff these people with this.
00:37:51.140 First, Cortez first, and Brett.
00:37:54.160 Yeah, Steve, by the way, I believe that's one reason why so many people on the right, unfortunately, good people, dependable people who share our values, but unfortunately they are focusing on the woke aspect of this, which again is immaterial.
00:38:07.280 You know, look, we hate woke, of course, and we hate corporate cultural Marxism.
00:38:11.700 That is not why SVB failed.
00:38:14.380 It's not why Synergy Bank failed.
00:38:15.980 It's not why more banks are very likely to fail.
00:38:18.160 It's not because of woke.
00:38:18.940 I believe the reason, though, a lot of folks on the right are going there, Steve, is because they don't understand this, okay?
00:38:24.740 And they don't care to do their homework, and it doesn't take long, okay, to understand what happened here in terms of a bond market revolt against Biden's inflation that made normally safe assets suddenly incredibly risky, okay?
00:38:39.760 That is the reality.
00:38:40.760 That is the crux of what is going on here.
00:38:42.940 And the consequence going forward is that it has put the Fed into a trap where we have inflation that is out of control, and yet if the Fed tries to fight that inflation, it risks massive bank failures, okay?
00:38:57.380 So don't – forget about the woke stuff, okay?
00:38:59.960 That's not material.
00:39:00.640 No, no, yeah, hang on.
00:39:02.500 No, no, exactly.
00:39:04.000 If you don't understand – this is not – by the way, it wasn't people who were saying, but, Steve, it's all these investments.
00:39:08.300 It's not their investments in these companies, the high-tech companies.
00:39:11.600 That's all the thing.
00:39:12.660 It's the – yes, the venture things were a scam, the loans, but that's not the point.
00:39:17.460 The point is it's Biden's economic policies and the government securities they held that blew a hole in their balance sheet coupled with these uninsured – the uninsured depositors.
00:39:31.140 But it was holding – it wasn't investments in the woke stuff.
00:39:34.240 That's all madness.
00:39:35.440 And by the way, this is also the reason that the VCs didn't want to step in and actually do credit lines themselves.
00:39:41.340 They realized, hey, some of these things that get funded, the woke stuff, the Green New Deal crap that gets funded in good times maybe gets on the short block.
00:39:50.460 Remember, we started this with the Gore stuff during the Obama thing when they were bailing all the Green New Deal stuff back then in the Obama administration.
00:39:59.320 Brad, you've been here.
00:40:01.400 Why are these guys – it's Tuesday morning.
00:40:04.500 Where are the Republicans they've had – this thing – I was on Tim Pool Friday night with Bishop and with the Gates.
00:40:10.740 They were on board.
00:40:12.000 I said they're going to put you over the abyss and say if you don't step up here, the country is going to get sucked down.
00:40:18.540 Where is the Republican Party, particularly in the House, sitting there and going, hey, screw you.
00:40:24.140 You're not going to get this done.
00:40:25.520 We're going to call everybody in here for a hearing, an investigation.
00:40:28.220 You're not going to put these – you're not going to back this up with bank fees that our constituents are going to pay.
00:40:34.720 Where is leadership right now?
00:40:36.220 Well, they're just wimping out.
00:40:37.960 We've given away entire sectors of the economy.
00:40:40.280 We've socialized health care.
00:40:41.840 We've got big everything, right?
00:40:43.040 Big tech, big auto, big planes, big banking.
00:40:45.680 Banking is probably one of the few sectors where we still have some support in terms of donors supporting some of the Republicans.
00:40:52.420 So they don't want to alienate that.
00:40:54.720 But this can be explained clearly.
00:40:56.860 The CEO of this Silicon Bank had a video where his heart goes out to everyone, right?
00:41:02.920 He's walking away with a golden parachute.
00:41:05.380 He's going to walk away with a 20-year prison sentence.
00:41:07.960 Well, I hope.
00:41:09.020 100%.
00:41:09.420 What are you talking about?
00:41:10.640 That whole thing is good.
00:41:11.540 Yeah.
00:41:11.920 Yeah.
00:41:12.160 His video was disgusting.
00:41:13.720 You never see anybody go to jail.
00:41:15.800 It's always about systems and regulatory and all this business.
00:41:18.320 And the great thing about the market system is the failure of firms, right?
00:41:23.120 You're supposed to have 1,000 firms on the supply curve, not five.
00:41:26.120 We don't have a market system.
00:41:26.600 Oh, I know.
00:41:27.000 That's what I'm getting at.
00:41:27.700 By the way, all the – and Ron – hold it.
00:41:29.540 Stop.
00:41:29.760 All the libertarian on-rand crap out in Silicon Valley, the Atlas Shrug.
00:41:36.560 Hey, shrug this.
00:41:37.640 As soon as they get a problem, they want to come to the collective of MAGA and please bail me out, mommy and daddy, working-class people.
00:41:45.680 They mock and ridicule working-class people every day of their lives until they need a bailout.
00:41:50.920 Then they've got to come to the stability.
00:41:52.740 They've got to come to the folks that underwrite the system.
00:41:55.440 That would be you.
00:41:56.240 That's where you're in the creditors' committee right now is at 202-225-3121 is the United States Senate.
00:42:03.600 202-224-3121 is the House of Representatives.
00:42:07.800 Please call right now to the switchboard and let your representative have a piece of your mind.
00:42:12.620 By the way, if you support this, call and say, hey, you're doing a great job.
00:42:15.760 Can we have some – thank you, sir.
00:42:17.360 May I have another?
00:42:18.580 Okay.
00:42:18.920 Thank you, sir.
00:42:19.700 May I have another?
00:42:20.460 Can we just go – why don't we start bailing out the shareholders and the bondholders too?
00:42:24.480 Let's just go do that.
00:42:25.340 If you like what you got to date to bail out the depositors, go ahead and let's get some more.
00:42:29.960 I triggered you with the free markets, but two points.
00:42:32.700 On the regulatory side, the left doesn't know any economics or finance.
00:42:36.560 You can put in any regulation you want.
00:42:38.420 You can fine-tune and regulate every breath these banks take.
00:42:42.040 They're going to learn how to cheat.
00:42:43.280 The guys are going to walk away with a golden parachute.
00:42:45.000 It doesn't matter what regs.
00:42:46.260 You put in that law, they'll walk around that law, and they're smart guys.
00:42:49.680 And in point two, the lived experience of the folks watching this show is what's in the back of their head is we just shut down the entire economy.
00:42:58.400 We shut down the entire economy.
00:43:00.240 I'll tell you what's in the back of their mind.
00:43:02.320 How do I get to Birch Gold?
00:43:03.900 Philip Patrick said, the busiest day in his 17-year career.
00:43:06.840 Honey, get out in the backyard.
00:43:08.300 Get that tomato can up and give me the Federal Reserve notes.
00:43:11.280 We're going to do a conversion process today, okay?
00:43:13.440 We're going to convert short commercial break.
00:43:16.320 Talking about conversions, the Church of America First is converting some folks.
00:43:21.060 All next.
00:43:21.560 In Joe Biden's America, criminals are exalted and the police are condemned.
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00:45:05.900 Okay, get together.
00:45:09.180 I'm putting up stuff all night long.
00:45:10.380 And by the way, what I appreciate, I put up a bunch of stuff on Ron DeSantis and what he answered the question, Tucker Carlson.
00:45:17.280 I think Grace put a couple of them on Twitter.
00:45:19.060 And I got lit up.
00:45:20.140 And it's great.
00:45:20.780 We're going to talk all about that.
00:45:21.860 And I love the fact that the hardcore America first and the hardcore, we'd love, we'd love, I'd love that kind of given.
00:45:27.460 I love it when you sit there and go, Bannon, you're being a wimp.
00:45:29.580 You're taking the bait, you know, stiffen your spine.
00:45:31.960 Because I think I'm as hardcore as possible, but I need to be slapped around.
00:45:35.380 I need to be slapped around every now and again.
00:45:37.860 A bunch of stuff going on in the Third World War.
00:45:40.200 Number one, Zelensky has gone all in on Bakhmut.
00:45:42.860 Please, we've been covering Bakhmut pretty closely the last couple of months.
00:45:46.340 He's gone all in and knows that optically he can't lose this.
00:45:50.560 I think they're reporting 50,000 troops.
00:45:52.600 This is one of the great – it's the greatest battle, I think, of the 21st century.
00:45:56.400 It's a World War I type of artillery duel that's really taking high casualty rates.
00:46:01.980 But the Russians and the Ukrainian army to date still hold – although the thing's surrounded, somebody's surrounded, they're still holding in.
00:46:09.040 Also, Point Loma yesterday, this big joint venture, the announcement with the United Kingdom, Australia, United States,
00:46:15.360 building these submarines, the CCP.
00:46:17.980 Also, a lot of news.
00:46:18.880 Cortez, let's start there with – just give an overview.
00:46:21.900 Let's talk about where we are in the Third World War, and then we're going to get into the conversions were happening.
00:46:28.020 By the way, the Church of America First is always there for converts, right?
00:46:32.640 And we had a convert.
00:46:33.540 We had a convert.
00:46:34.400 We've got a semi – I think it's a convert, but I'll give the posse that's a semi-convert of Ron DeSantis,
00:46:40.240 and we're going to talk about Ken Griffin also.
00:46:42.800 But give me your assessment of the reality we talked about forever, which – the basics of Trump's foreign policy was to keep Russia,
00:46:53.160 the KGB in Russia, from merging and partnering with the CCP in Beijing.
00:46:57.880 Because once that happens, it's only a matter of time before they partner with the mullahs in Tehran, Erdogan, Pakistan.
00:47:04.900 You've got a problem that we've never faced in world history.
00:47:08.840 Steve Cortez, your thoughts.
00:47:10.560 Correct.
00:47:11.080 Listen, since the days of Richard Nixon, who I think was probably the most brilliant foreign policy expert to ever occupy the Oval Office,
00:47:18.540 since that time, United States policy in Asia has been to drive a wedge between the two great powers of China and Russia.
00:47:28.220 We now see the exact opposite under Joe Biden.
00:47:31.100 He has, in fact, compelled them to seek out each other and to engage in a very close alliance, an anti-American alliance of Moscow and Beijing.
00:47:41.460 And the new news regarding this is that President Xi, he is entering effectively the power vacuum that has been created by Biden's failures.
00:47:50.960 And what I mean by that is that the new announcement is that he is both going to be speaking via phone, via video phone, to Zelensky and visiting with Putin.
00:48:00.320 So he is doing exactly what the United States should be doing, what a responsible, real president of the United States would be doing, what Donald Trump would be doing.
00:48:10.640 And I have no doubt, as I've said before, that he can negotiate an end to this insane war in Ukraine in a matter of days, OK, if we had his style of leadership and if we had that kind of negotiator in chief.
00:48:23.440 But this power vacuum, a power vacuum always gets filled and it is getting filled now by Xi.
00:48:29.280 He is effectively becoming the leader of the principal superpower of the world in many respects.
00:48:35.740 And that is simply the reality, the very unfortunate and tragic reality right now because of the abdication of Joe Biden, because of his complete dereliction of duty, his several created crises, crises plural, meaning the inflation crisis, the open border and the needless escalation of this Ukraine situation.
00:48:54.380 So he is failing miserably across the board.
00:48:57.160 She is stepping in.
00:48:58.140 I want people to understand that you're underwriting this, too.
00:49:03.060 Right now, The Economist – in fact, we're going to do a special on this.
00:49:05.800 The Economist finally catches up with the war room.
00:49:08.540 They talk about Taiwan, a whole special edition on Taiwan.
00:49:11.560 We're going to break this down with our experts to get into it.
00:49:13.920 But remember, you're underwriting the bank bailout, the administrative state's financing.
00:49:19.380 So you're underwriting that.
00:49:21.140 You're also underwriting the CCP.
00:49:22.620 Our capital market is still underwriting.
00:49:25.180 We could take down the – Lao Beijing could overthrow the Chinese Communist Party in Beijing in 100 days if you cut them off 100 percent from capital, you cut them off from the Swiss system, ability to transfer money, and if you cut them off 1,000 percent of technology.
00:49:39.600 It's hard to do that when Sequoia, right, is one of the big financiers of Elon Musk in Twitter, and Sequoia is all over Silicon Valley Bank.
00:49:49.340 And I think a third of the companies, a third of the startups of CCP – remember, your money – the government money got shipped to Beijing to make sure that they could bail out their own companies instead of letting those companies fail.
00:50:00.360 So you're underwriting – this audience is underwriting all of it.
00:50:03.160 Just remember, you're underwriting all of it right now.
00:50:06.260 Brett, give us perspective on this Third World War.
00:50:09.240 How far – is this analogous to 1938 and 1939?
00:50:13.720 Yes, there's no limit on the downside ahead if we get things wrong, and you just kind of triggered me on Frank Gaffney and the Committee on the Present Danger and all the work they've been doing, showing that your pension funds are invested in Chinese weapons systems aimed at us.
00:50:32.640 I mean it's stunning.
00:50:33.460 And Frank is utopian on his issue.
00:50:35.660 Like I probably – economics.
00:50:36.720 He thinks it's a matter of if we get the word out to the people, they will shift.
00:50:42.500 I'm not as optimistic.
00:50:43.940 I think people kind of understand this, but it's just like the banking crisis and every crisis we have.
00:50:49.780 No one wants to stop the Titanic right now, and the deck chairs are moving around.
00:50:56.020 You've got to get stuck.
00:50:56.600 Yeah, but that's where this audience is the vanguard.
00:50:59.140 Remember, every time they go to a backyard barbecue, every time they go to the dinner party, every time they go to a PTA meeting,
00:51:05.060 every time they're sitting in the stands watching the kids play sports, they're the ones that are most informed.
00:51:09.740 People are sitting there and go, where did you hear that?
00:51:11.380 I didn't know that.
00:51:12.140 That's right.
00:51:12.860 They're walking through how we're underwriting the debt crisis.
00:51:15.680 They're giving a sophisticated analysis of how this happened.
00:51:18.960 They understand that this is a third world war.
00:51:21.080 The whole purpose of the show is that this is a vanguard, and you've never had a vanguard in this country, even in the Revolution and the Civil War.
00:51:28.740 You never had a vanguard that was fully informed with the best information out there that, quite frankly, is better than – I mean, look at J.D. Vance.
00:51:36.940 He's a U.S. senator.
00:51:37.780 He goes and talks to the head guy, the senior people over there, and says, hey, I'm wondering here, are you giving an implicit guarantee to all deposits?
00:51:46.160 Or you just – and they say, well, we're working that through, right?
00:51:49.200 This audience knew this on Friday, right?
00:51:52.580 That's where – and this audience, that's why – pick up your phone, get your email, and give – I'm not going to tell you what to say.
00:51:59.340 Just give you the information, but you better have your voice heard.
00:52:02.940 Give it to them with both barrels, as we used to say.
00:52:05.580 Yes, sir.
00:52:05.780 Yeah, well, and the folks can catch up.
00:52:07.820 Xi Jinping gave his 20th Communist Party meeting notes, and they're turning inside.
00:52:13.240 They're going full-on Marxist-Leninist.
00:52:15.260 They got rid of all market reform.
00:52:17.000 They're trying to form a consumer.
00:52:18.300 That won't happen.
00:52:19.780 And so our folks need to – China may be cracking.
00:52:23.340 That's the –
00:52:24.300 I think the demographics, all of it.
00:52:26.600 Yeah.
00:52:26.940 But they ain't going down without a fight, trust me.
00:52:28.880 No, no.
00:52:29.040 A big fight.
00:52:29.800 Okay, short break.
00:52:30.860 Back in a moment.
00:52:31.980 90-second break.
00:52:33.720 Let's take down the CCP.
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