Episode 3385: Hammer To Come Down On The Working Class Americans
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Summary
On this episode of War Room we have a special guest on the show today, Jason Trans. We talk about the Super Bowl and how much money is being wasted on China's Super Bowl ads. We also have a cold open with President Trump and the patriots award from him and the team in Mar-A-Lago.
Transcript
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this is the primal scream of a dying regime pray for our enemies because we're going medieval on
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these people here's not got a free shot all these networks lying about the people the people have
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had a belly full of it i know you don't like hearing that i know you try to do everything
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the world to stop that but you're not going to stop it it's going to happen and where do people
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like that go to share the big line mega media i wish in my soul i wish that any of these people
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had a conscience ask yourself what is my task and what is my purpose if that answer is to save my
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country this country will be saved war room here's your host stephen k band
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okay welcome back uh monday 12 february year of alert 2024 jason trans gonna join us in a moment
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i got a cold open for him but i want to finish mike so the the congressman miller sent a note a letter
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to cbs saying she didn't think it was appropriate to have a chinese communist party um apparatus you
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know advertising on the super bowl she got blown off that was tamu which is a total ccp company
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remember this is information warfare this is what tiktok is doing now they have tamu uh they want
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to get all your information walk me through i gotta bounce but walk me through uh quickly uh my store
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yeah you guys um you not only can you use your war room code on mypillow.com for all of the exclusive
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war room specials we've launched mystore.com and you guys have responded so awesome the mystore.com
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for entrepreneurs and thousands of usa made products the media has already mocked this
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platform jimmy kimball went on there went after it but you guys have made it all possible here's the uh
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here's the special on my pillow for 29.98 the queen size you keep my factory busy and i'm out there
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we got our groups on the ground trying to secure our elections and it's all because of you war room
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posse those specials there there's the 29.88 the 20 year anniversary my pillow on sale but we've got
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the the uh my pillow 2.0 here's the my store platform here you guys all these all these products
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you can scroll down their stories are there usa socks you've got the my pillow or the my store gummies
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these are all individuals that um have they started out just the way i did and they developed
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their products you've got the paintings there there's uh jim hansel my painter he's actually
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legally blind that's the one jimmy kimball mocked on tv but you guys have supported all these
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entrepreneurs thousands of products everything from home decor bed bath um you name it on there
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it's there and they've invented over two years now all these products and they're finally up and all
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their stories are there too so use the promo code war room support usa made and check it out you can
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shop all everything you need is on that site and all usa made and we're not going to let uh
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them be copied overseas and no no way no and it's in in tamu's not even like amazon goes up and it's
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copied immediately and the entrepreneur gets screwed tamu it's the slave labor allowed by jing
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it's allowed by jing that's the slave labor they do it right out of the box uh mike thank you so much
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we look forward to having you back this afternoon we're going to have you on talk about uh the arizona
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situation so thank you so much so i appreciate it mike lindell got the patriots award from president
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trump and the team down there in mar-a-lago over the weekend amazing i've got a cold open from the i
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think this morning on squawk box let's go ahead and play it can government spending and government
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employment and and fiscal spending and the fed it can keynesian economics work i mean that's is that
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what you attribute this economy to right now because i do biden really hasn't done a pro i don't know
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republicans think pro growth is is supply supply side stuff there's been that there's just been
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a lot of we're listen joe we're running a budget deficit of seven percent of gdp right now we've
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only done that three other times since world war ii uh and those times we were deep in recession and
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and the unemployment rate was above seven running a budget deficit this large at full employment
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is unheard of it's crazy trump did it too though right well nothing to this extent not nowhere near
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seven percent of gdp and i'm not saying we didn't spend we didn't spend a lot of money it's it's a
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bipartisan issue the the the problem is without the fed being the buyer of last resort for treasuries
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long-term interest rates are going to head higher so but maybe that's the plan maybe that but the
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the thing is you can't control everything if the fed is going to do that you're going to have a
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persistent inflation problem because um as we know inflation is too much money chasing too too many
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too few goods okay uh brother trenner from uh strategist that's pretty counter narrative of the
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soft landing they've done a great job joe biden bidenomics is working uh the janet yellen's a genius
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you know she's yoda and uh and powell's the best fed secretary we've ever had you have you have a
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counter narrative that i think you back up with empirical evidence what's your what's your what's
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your what's your point because because and we didn't couldn't play the whole clip but the the morning
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the uh squawk box guys were not exactly high-fiving you so no what's the reality no i mean i think
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listen i think on a i and i love cnbc and they do a nice job but but the ultimate arbiter on on that
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show as to whether something is a good policy or not generally is is whether stock prices are going
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up and stock prices went up last year but one of the things i mentioned and there were there were
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two very meaningful uh changes last year one was when we bailed out the depositors of silicon valley
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bank by injecting 400 billion dollars onto the fed's balance sheet the second was when janet yellen
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uh suspended uh suspended coupon issuance with uh just a fancy way of saying she stopped issuing
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long-term debt in in late october and uh so you had a situation where earnings for the s p 500 were
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flat long-term interest rates uh went up and yet stock prices went up by 24 percent to me um of course
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it it's it feels good when stock prices are up but um you're not really doing it the right way you're
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not you're not doing it the way in which it is something that signals uh broad productivity
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growth or or uh broad uh increase uh in the productive capacity of the united states you're
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doing it with smoke and mirrors this is a no holds barred uh economy right now uh both from the fed uh and
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the treasury department and the administration they're using every tool uh in their arsenal to keep
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the economy out of recession um that could almost sound noble except that there will be a cost to
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to pay for that longer term and you're you're um papering over a lot of the structural problems that
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we have been creating uh in the u.s i want to go to the structural problems but first i want you
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put up an amazing chart and if denver could put this up i think your your concept here is called the
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common man cpi walk walk us through what this is because this will lead us into the structural
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issues we have yeah so and the games are being played in the smoke and mirrors so walk walk me
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through what reality is so reality is so that one of the things that's happening with the biden
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administration uh and i think you know it's justifiable on one side you can say well listen
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they say the unemployment rate's uh extraordinarily low um inflation's coming down uh and yet and stock
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prices are near all-time highs why aren't we getting more credit for the economy what we did
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here was we took a look at uh at inflation but on things that people have to buy uh so it's uh it's
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housing it's food it's energy it's utilities it's insurance uh it's not the rest of the things in the cpi
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so as you may know the bureau of labor statistics they have headline cpi and then they have something
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called core which excludes food and energy the problem is for most people you know eating and
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staying warm is pretty core and so what we did is we said all right let's look at all the items in the
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cpi and say what are the things people have to buy and what this shows you is that those prices have
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risen far faster uh than wages uh by about seven percent and this is why the president is not getting
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the credit they deserve they believe uh they believe they deserve uh right now and and in my
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opinion there's very little that's going to stop this um given the fact that we now have 34 trillion
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dollars in debt uh we're likely to run another budget deficit of two trillion dollars uh about seven
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percent of gdp this year and so um the problem is the fed has largely monetized the debt which means
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they've bought a lot of the debt uh which keeps interest rates down but um there's no wisdom in
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that that's it's literally just trying to buy a little time uh before you the bill comes due for
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all of this wayward spending so um over you call this common man cpi that that is essentially the lived
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experience of working class and middle class americans is it not sir
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correct so again you know food energy clothing shelter insurance utilities things that you can't
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necessarily you know they're not they're not discretionary items it's not like going to cancun or
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or guest in florida or buying a flat panel television i mean those are things you could do at another time
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these are things you have to pay for every day to survive and uh this is telling you that people's
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wages are significantly behind about seven percent behind uh what the cost of these goods that you
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have to pay for uh have been over the past five years and this is people's lived experience this is
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why people don't feel good despite the fact uh that stock prices are hitting uh new highs
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now the structural issues you just talked about and what they're doing the spending but what they're
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doing the finance spending then leads to the fact that ain't going to change correct this is in fact
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it could actually get worse i think it's unlike with this federal reserve uh and i i try to give
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people the benefit of the doubt really and and i my experience is the fed generally tries to do the
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right thing um even though they might have bad policies i think qe for 12 years quantitative easing for
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12 years was a terrible policy uh in many ways extraordinarily regressive uh which means that
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it helped wealthy people far more than it helped the average person um but this is what they know
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this is a new tool and as you know in washington once you get a new tool once you get a new power
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you don't give it up and i don't think the fed's going to give this up uh the the problem with that
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steve is that uh it's going to be very difficult to control inflation over the long term if the fed is
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going to step in again and save the federal government from its wayward fiscal ways it's
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very hard to control inflation that way um so you can do it uh it'll work quote unquote work uh but it
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only it only creates more resentment uh among uh the voting public uh and the average person average
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person for 12 years got zero on their savings accounts okay if you had private equity if you had
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bitcoin you had spax you had anything leveraged you crushed it uh and um to me that's not the way it
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should really work you should be rewarding thrift you should be rewarding uh people that make uh that
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make uh very prudent uh financial decisions and yet really it was quite the opposite uh for 12 years
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because of the fed uh they're addicted to it now i don't see it changing unless there's a change
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um in the chairman of the federal reserve see we have two addictions one you have the fiscal side
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and you have the monetary side those are two things of economic policy right um macro policy i want to
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go you you now have and you've been arguing this in your own quiet way with empirical evidence for
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years now other people jamie diamond who i think is is trying to think through a presidential run in
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2028 he's a newborn populist over the last 72 hours it's been like cassandra he's warning about
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it's 10 years it's going to be over which is going to be much uh nassim talib the brilliant guy that
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came up with black swan he says no longer black swan it's a white swan it is inevitable it's going
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to happen and it's between five and ten years but on capitol hill they're up there all weekend and
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we're covering it 24 7 they're talking about another 100 billion dollar supplement to really an
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8 850 billion dollar defense spending already there seems to be this massive disconnect and
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we've only got a minute here uh and we'll hold you through the break what that we're we're we are
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in republic ending endeavors on capitol hill because of the spending what is it going to take to wake
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these guys up well the thing is this is where the fed comes in the fed has essentially taken the
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the um they've taken they've taken the instrument panel out of the automobile right so they they
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don't because the fed is is subsidizing interest rates there's no signal to to fiscal policymakers
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to stop spending in the past james carville said he wanted to be reincarnated as the bond market
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because it intimidated everyone and right now the the bond market doesn't intimidate anyone
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because the treasury department's going to stop issuing long bonds or the fed is going to start
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buying them uh but again you are just papering over the problem you you are just buying yourself a
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little extra time sooner or later it's going to find its way into either bond uh either bond yields
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or the currency and uh and i think um or both and i think we're likely to see that um without some
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sort of course correction over the next several years hang on for one second i want to take a short
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commercial break jason trenert uh joins us from strategist uh considered one of wall street's
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smartest guys uh and i might say or dare i say a populist the the working man's voice that's always
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helped us think this stuff through uh so remember you got some pretty smart guys on our side of the
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short commercial break we're in return in a moment
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as we head toward a presidential election in november one thing you can be sure of 2024
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will be a tumultuous year like no other how will your hard-earned savings fare during this year
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action action action you know to use the dollar as a tool of foreign policy struggle
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is one of the biggest strategic mistakes made by the u.s political leadership the dollar is the
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cornerstone of the united states power i think everyone understands very well that no matter how
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many dollars are printed they're quickly dispersed all over the world
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i want to spend more time with jason uh i'm going to break this down as i told you uh if not at six
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o'clock tonight then then tomorrow um about the uh the dollars of prime reserve currency
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putin i think it went on for four four and a half minutes there's not many leaders in the world
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maybe trump and putin that could talk about the uh the importance of currency and dollar uh in the
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us being the prime reserve currency as we keep telling you we're at the end of the dollar empire
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because of the printing machine when jason trenta talks about mona you know monetization of the debt
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quantitative easing these are highly technical terms used on wall street but this audience understands it
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because for the last couple years we say you have to understand this this is the way that this is
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what the long con is right and now and you're the ones being conned so um this is incredibly important
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i just want to make joe allen's going to follow us right here he's going to be here in a minute on
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artificial intelligence as as jason made that great uh comment today when talking about the stock
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market so far up he says well look the max seven are up but the rest of the country the rest of the
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companies particularly the industrial companies the ones that employ people right not a bunch of
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guys writing code or or building companies off algorithms uh the funds that like employ people
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not so much i think nvidia the chip maker is that's focusing on on uh on artificial intelligence as joe's
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going to tell us in a minute i think the market cap in nvidia is now bigger than the entire the market
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the total market capitalization of hong kong of the chinese stocks in hong kong
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jason what putin said there is that uh is that you're seeing the end of the dollar empire because
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the united states has overplayed its hand here using it as a weapon now citizens of the united states
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have to take until they vote these people out what's going on here but the brics nations don't
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that's why the brics nations the central banks there are looking for alternatives
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alternatives to the dollar this de-dollarization and it's not going to happen overnight
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but in your scenario if we keep going down this path eventually other people in the world are
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going to say hey look the elites united states may be doing this to their own country but we don't
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have to suck on it right we'll have to come up with an alternative your thoughts sir listen there's
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nothing uh there's another theory that that's very close to this called modern monetary theory which
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is essentially the idea that you can spend whatever you want if you're the reserve currency and it has
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no implications and use fiscal policy like taxes to slow uh the economy down the problem with that
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is that there's nothing modern about modern monetary theory there's nothing modern about spending money
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you don't have uh in foreign excursions or bread and circuses uh this is as old as humanity itself and
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there have been very many reserve currencies throughout uh the history of man uh and great
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societies lose them in the same ways by by continuing to spend money they don't have it is not imminent that
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the u.s would lose its reserve currency it's still on about 90 percent of one side of 90 percent of
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transactions globally but if we continue down this road uh it it seems to me we are the the power of the
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u.s and that the strength of having the reserve currency will weaken people will look for other
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alternatives and i think that's true of our debt uh as well uh china japan saudi arabia are all for for
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variety of reasons are all trying to diversify their holdings of u.s treasuries and and that is
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something that again will raise uh at a minimum start to raise interest rates if taken to an extreme
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without some sort of course correction it could eventually lead uh at a minimum to significantly
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higher inflation versus goods uh and at a maximum to uh another another option another fiat currency
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option i have to state the the u.s is very much bailed out by its competition in this regard there aren't
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very many other fiat currencies um that uh that are backed by anything uh other than uh the full faith
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and credit of their countries and so u.s tends to win because we have the biggest navy and the biggest
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military but um again this is no divine right to have uh to have the currency the reserve currency
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we have a an etf called the samt uh that plays this idea of deglobalization uh we feel very strongly
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that the world is the the great uh the great movement towards globalization which started
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when um when the berlin wall came down in in 89 and then when china joined the wto in 2001 we think
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that's coming in to an end and we're playing that largely through higher uh exposures to defense
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stocks and also energy stocks as well so and where do people go to get information about this this this
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is the etf you set up just explain explain to our audience what an etf is and and why it's something
00:22:03.560
they should think about yeah an etf is it's called an exchange traded fund it's not that different than
00:22:08.740
a mutual fund but in some ways it's better because it has less tax liabilities less transaction costs
00:22:14.000
but it's the same thing and and and it's and it's it's it's cheaper uh to to own but it's it's
00:22:19.140
essentially a fund of stocks uh and uh ours is called samt uh you could go to our our website uh at
00:22:27.140
strategus uh and find out information uh about it uh and we also have one that's focused on lobbying
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focused on companies that uh that are the most intense lobbying companies it doesn't make us feel
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good to to play that in a way but it is the way the world works and we uh and uh and it works the
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thing is it works we got to figure out you got to help the warm audience figure out how do we short
00:22:52.020
the the the lobby etf but i i kid you i want everybody to go to the site and immerse yourself
00:22:57.140
jason's one of the smartest best guys around but i want to go back to something look when you say
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full faith and credit this audience is the full faith and credit of the united states it's the
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backbone of the nation right it's the taxpayers of people sons and daughters uh join the military
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that's the full faith and credit the united states is this audience when you talk and these are
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these are people just want to be left alone build their families you know they'll pay their taxes but
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they what's going on now they see as a circus and they're getting blamed for it they're the problems
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they're the agent of chaos they're the domestic terrorists they're trump is their is their agent of
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chaos but you look at modern monetary theory and here's the point the institutions in this country
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the fiduciary institutions in this nation took a radical french idea modern monetary theory and we've
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basically run the country on this and definitely since the biden regimes come in you've seen this how
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could that have happened without any public debate in fact quite frankly the wall street journal would
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come out op-eds or editorials how terrible this is but correct me if i'm wrong did not the lords of
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easy money on the oligarchs of wall street and in the fed and in treasury embrace this theory along with
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the the political class because it got people off the hook and allowed the long con to just continue
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absolutely and not they didn't they didn't uh uh support it explicitly but they they clearly uh
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supported it implicitly listen this this monetary system we have now was considered um illegal largely
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before the global financial crisis uh in the fed's charter uh it does not really have the ability to
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print money uh but except in exigent circumstances now the global financial crisis was an exigent
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circumstance um there are no atheists and foxholes hard to be that pure having said that once that
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power was given to the fed they never relinquished it the fed became in the words of a lot of scribes and
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and and also uh people uh and in washington the only game in town well the problem with that is that the fed
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is not elected by people uh it's a group of unelected people that are not accountable to uh to the voters
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and so the fed should never be the only game in town uh we have elected officials that can be voted
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out of office that are supposed to take that responsibility i would love to see a fed that
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relinquishes that response that that uh those powers are very unlikely to happen without a different fed
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chair uh it might result in some very difficult choices that need to be made but it would it would
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lead to a far better allocation of capital a much more fair capital market a much more um much better
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outcomes for average people um i feel very strongly about that and that's something that is really it's
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it's something that was dreamed up by a lot of phds uh it looked like a good idea it got everybody off
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the hook for a while but it's created massive distortions on our economy and in our capital markets
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i i just want to go real quickly geithner and bernanke during the financial crisis how were
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those powers just how were those powers given to the fed which you said up until that time was
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actually illegal because you could not i mean you got nixon off got took us off the gold standard the
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convertibility golden 71 then you had the financial crisis of 2008 kind of caused a little bit by that
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how what actual act uh gave the fed that power this is well there is in the fed's charter it's uh i think
00:26:27.800
it's section 13 3 and it gives it does give i would say the fed broad power to use this with
00:26:34.900
with uh congressional oversight it does give them the ability to use that power it had never been
00:26:41.840
used before though and um at the time of course we were um we were in very serious trouble economically
00:26:49.500
and the power was given the problem uh the the power was acceded to by by congress the problem was
00:26:56.560
that congress never wanted the power back they they they were perfectly happy to give uh the fed the
00:27:02.920
ability to print money uh essentially and it relieves them from having to deal make any difficult
00:27:08.960
decisions as far as fiscal policy uh is concerned again it's it's like taking the it's like taking
00:27:14.960
the speedometer out of the automobile uh you have no idea how fast you're going the dashboard right so
00:27:21.600
it really is um again to use it for one or two years in a time of crisis uh i would say given that
00:27:28.420
what was happening in 2008 made sense using it for 12 years was irresponsible
00:27:32.140
sir where do people go once again to get to your website all your information in particular
00:27:45.600
jason always great to have you on here and always great how you're thinking through things from the
00:27:52.260
uh from the little guy's perspective the common thanks a lot thanks steve i appreciate it
00:27:57.220
they because they are the full faith and credit of the united states not the fed not congress you
00:28:06.100
beware when's the last time you checked your home title never right cyber criminals may have already
00:28:24.340
forged your name off your home's title his name is on your home's title he's going to take out loans
00:28:31.880
using your equity you won't know until foreclosure notices show up for unpaid home loans he took out
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on your house now i rely on home title lock to protect my home's title the instant they detect
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activity they mobilize to shut it down let me repeat that the instant they detect activity they
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mobilize to shut it down question has some criminal taken over your title find out for free when you sign
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you'll get a free comprehensive scan of your title in 30 days of legendary home title lock protection
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let me repeat that you get a free comprehensive scan in 30 days of legendary home title lock protection
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this is all free go to home title lock home title lock dot com that's home title lock dot com and put in
00:29:47.940
Okay, Grace and Mo, help me out here, but I think it's
00:29:55.480
12 noon for the Senate. We'll be streaming that
00:30:07.780
manning the ramparts, hopefully giving some leadership
00:30:13.580
attention. There's no doubt about it. But here's
00:30:49.880
beginning and the war room has been right and this
00:31:04.720
his biblical worldview had a couple of security
00:31:07.220
You know what Navarro and I used to sit there. We got the
00:31:10.160
morning brief. I'd sit there all the time and go
00:31:29.740
is smarter than you guys because most of you don't
00:31:41.260
Just watch this. This is why we're covering it.
00:33:18.460
The first touchpoint they're going to get to you
00:33:32.740
get a hard money second mortgage on your house,