Stephen K. Bannon speaks on the government shutdown and why it s not the Democrats fault it s shut down. He also talks about the latest on the Trump assassination attempt and why he thinks the media should be held accountable for it.
00:01:22.000It is not the House Republicans that we're in the position where we have to have a resolution to continue funding the government at the end of the fiscal year.
00:07:20.000Download the Bill Blaster app and you're going to call your congressmen, your senators, Republican,
00:07:24.000and Democrat, and especially the office of Speaker Mike Johnson.
00:07:30.000We're going to say hell no on this three-month CR.
00:07:34.000I'm honored now to bring in the one and only Russ vote from CRA.
00:07:39.000Russ, before we get into the nitty-gritty on all this, I'd love to just sort of get your theory of the case when it comes to this CR in particular and why opposition is so, so critical.
00:07:52.000No, this needs to be a hard and easy no for all Republicans, that you're going to put us into a lame duck session where we're most likely going to get some version of an omnibus bill.
00:08:05.000And they are parsing their comments very carefully, but that's what happens when you're in a lame duck omnibus after an election where there is a rush.
00:08:15.000They always talk about clearing the decks into the next year.
00:08:18.000They're in the midst of their leadership elections and organizing with their new members.
00:08:25.000It produces bad policy and bad bills, one of which is an omnibus bill.
00:08:29.000So this needs to be a hard and easy no.
00:08:32.000Every Republican should be voting no on this.
00:08:34.000Senators need to be pulling out all the stops to slow it down so that even if we can't stop it, it becomes such a plague on the majority that they can't do anything other than try to get out of that lame duck with something other than an omnibus bill that I'm worried about does two things, Natalie.
00:08:52.000I'm worried that it funds the federal government at woke and weaponized high levels of bureaucracy, all of the things you mentioned in your open for a quarter of what I hope to be President Trump's second term for the funding for his first year is happening now.
00:09:09.000Secondly, I'm very worried that we have a big bill like this.
00:09:13.000They put in things that tie his hands and no one reads these bills, even the people who write them read these bills.
00:09:19.000So we find out about this after the fact because they passed it in the dark of night and we don't have an ability to make sure that Speaker Johnson and others are even aware because the appropriators writes these bills of what's in the bill.
00:09:32.000So we're in a very dangerous place right now and it's incumbent on all Republicans to make sure Hakeem Jeffries carries this bill with as little Republican support as possible.
00:09:42.000You know, Speaker Johnson stands up there saying that he wants to ensure a victory for Trump and that he thinks his agenda is so important to roll out, but the omnibus would essentially handicap it.
00:09:53.000So can you just walk the audience through just historically why you think the omnibus will happen despite Speaker Johnson's protestations otherwise and just walk us one more time through when they're making the phone calls why any congressman who claims to be a supporter of President Trump if they vote for this bill they are actively undermining his agenda.
00:10:12.000You know, after an election you have limited time and so they're going to put these bills together and historically that has been to put them into one bill and ever since President Trump started to be opposed to omnibus bills and saying I hate these things stop doing that.
00:10:28.000Then they stopped they started doing them in minibuses where they would put still there's still massive bills there's still thousand page bills and so I think in when I when I heard some of the comments coming from the Hill they are entertaining minibuses and I know Speaker Johnson said that that's not his intent but the the or the institutional pressures will be to still have be very very big bills without a lot of time and they feel like they need to get those things done.
00:10:53.000That is a recipe for disaster because you don't have enough time to be able to scrub these bills know what's in them you're reading them at the dark of night before members are voting and it's just it is not a great way to at all to do business friscally for the country.
00:11:09.000I'm just curious what your thoughts are on the politics of a shutdown this close to the election or what you think the alternate strategy would be given that what is it about 75 percent of the government is more or less funded through these
00:11:23.000single subject spending bills despite the Senate not really moving on them.
00:11:26.000Well I think there is there this has been one of the main handicaps in DC that has frustrated this audience and the grassroots at large which is that Washington DC and you saw it in in Speaker Johnson's comments is afraid of shutdowns.
00:11:43.000They view them as the terrors in the night and that there is no way to to be able to argue on the basis of whatever you're fighting for.
00:11:52.000In fact most of the times when you've had government shutdowns the American people reward the Republican Party for fighting and doing everything they possibly can to get their policy objectives across the finish line.
00:12:05.000Because if one side says look I'm going to say no and no and no and the other side says I can't have a shutdown who's going to win the negotiation.
00:12:12.000So this this this this notion that we could not have had a brinksmanship fight with a potential government shutdown right now on the basis of spending and the SAVE Act is just not true.
00:12:25.000And as a result we had a complete complete capitulation because of a disagreement as to whether you do a CR you finish the bills.
00:12:36.000Both of those camps want to have a fight with Washington DC the cartel the unit party comes along and says up.
00:12:44.000All right we're not going to go and get our work done.
00:12:46.000We're in fact going to kick us in a lame duck which we we know is in our favor.
00:12:50.000And so that is something that is there's no explanation for that in the real world.
00:12:56.000Much of the federal government will continue.
00:12:58.000And by the way we saw in covid covid shut down most of the most of the country and we still had the federal government working behind the scenes.
00:13:06.000So look everything is basically an autopilot social security checks the Postal Service Medicare payments.
00:13:13.000We're talking about unessential employees that wouldn't show up and be able to do some of the discretionary activities of the federal government.
00:13:20.000This is long been a boogeyman that the that politicians in DC have and President Trump had laid the predicate to have this fight multiple times on the basis of the SAVE Act.
00:13:30.000And it's unfortunate that the Republican majority couldn't get there and be able to pick this fight with the Democrats.
00:13:36.000Just give me a minute we've got to jump to break shortly but do you think then the issue is is Speaker Johnson do you think we need to be having just having a discussion about the fate of his speakership or what do we need to be focusing on right now.
00:13:49.000I've clearly been a critic of Speaker Johnson.
00:13:53.000I think that in this case that he wanted for a moment to be able to have the fight with the Senate but he wasn't able to do that because there wasn't enough trust for very good reasons that he would actually.
00:14:07.000Stick to the fight and not prevent a shutdown if a CR with SAVE Act went to the Senate and that's why I haven't weighed in too strongly because my belief has been that the critics were like.
00:14:17.000Like you know what he hasn't he hasn't shown enough trust and built enough trust to be able to say if we're going to pick this fight we're going to push the boulder down the field we're down the hill we're going to allow this fight to develop and actually go into a shutdown.
00:14:32.000And so that's that has been the challenge and this leadership team has to get to the point where they can unite both sides.
00:14:38.700And we we haven't seen that where they could say look we're going to fight and we're going to allow you the conservatives to trust when you make play difficult plays.
00:16:21.680Welcome back to The War Room where you've got to be checking out birchgold.com slash Bannon or texting Bannon to 989898 to get the latest installment of the end of the dollar empire and also supporting Patriot Mobile.
00:16:33.700It's how you keep this show going, which in times like these, I know that's usually the Birch Gold script you guys are used to hearing, but in CR fights like these, we need the war room more than ever.
00:16:43.900And we, of course, need Russ vote more than ever.
00:16:45.820Russ, I know you've got to bounce, but real quick, just give the audience the sort of 30-second soundbite that if they're calling tonight, what they should be saying when they're making those phone calls to 202-225-3121.
00:17:00.720You cannot be a part of creating a lame duck session after an election with people that have already been voted, in some cases, out of office with a potential cavalry of President Trump coming, an omnibus bill that would originate and hurt the first year of a trumpet presidency.
00:17:18.200Vote no, vote against a lame duck, and vote against an omnibus bill that would come out of that lame duck session.
00:18:00.260We got some more news we gotta run through.
00:18:01.800We're gonna be joined by Ed Dowd, of course, on the heels of Biden, Harris, Fed, cutting rates by the largest amount since the 2008 crash.
00:18:12.660I think a lot of people are wondering if it's either sort of a precursor to potentially another crash or if it's just, you know, election interference.
00:18:22.140I guess we're used to both here in the War Room.
00:18:25.000But there's so many economic indicators that I could cherry pick and do a whole show on.
00:18:28.760One today showing that unrealized losses on investment securities for U.S. banks are seven times higher than at the peak of the 2008 financial crisis.
00:20:24.140The bank losses you just called out because of the rapid rise in interest rates has caused unrealized losses in their held and maturity portfolios.
00:20:33.840That caused a run in some banks last year.
00:20:37.280As you remember, Silicon Valley Bank and others, it was the fastest bank run we've ever seen.
00:20:43.280The Fed came in with a bank term funding program to plug the hole.
00:20:47.560That program ended in March of this year.
00:20:50.020And the problem is, as we roll through the economic cycle, there's bad credit now.
00:20:54.820They were filling a hole for bad interest rate risk on pretty safe securities, treasuries mostly.
00:21:01.100But they're not going to bail out credit risk.
00:21:04.580And there's a commercial real estate crisis going on.
00:21:07.200And we're now in the credit cycle of this.
00:21:09.420And it's just a question of time when this all starts to unravel.
00:21:13.620And, of course, the government juiced the economy last year to keep it from going into recession with unprecedented spending government hiring.
00:21:21.840And then the illegals have added to the economy.
00:21:24.340But that juice has run out and we're rolling over.
00:21:27.720So this is kind of a, can we make it to the past the election before the stock markets figure this out?
00:22:05.060There's another interesting, I think it's the chart we have up on screen now showing how under the Harris regime,
00:22:10.940it really has been investors that are gobbling up most low-price housing.
00:22:16.900I know we like to focus on, you know, illegals buying up all these houses.
00:22:21.880But I think it's an important part of the conversation, too, especially when you see Kamala Harris saying that the way she's going to combat this issue
00:22:28.500is by, what, building, you know, 3 million new homes and giving out tax credits.
00:22:32.720I'd love your take on sort of the housing market as a broader indicator of just how dire things are.
00:22:40.100Well, clearly, home prices are extended above fair value, which is around 5, 5.3 times median house income.
00:22:49.980So the housing market is 40% to 30% overvalued right now.
00:22:54.700And there's a lot of policy pronouncements to try to fix that.
00:23:01.080The easiest way to do this is to build more supply.
00:23:04.460Let the economic forces of nature take control.
00:23:08.460The problem is there's so much red tape that 30% of a home price is red tape and getting the permitting just to get the stuff built.
00:23:18.560If we could reduce the red tape, home prices would come down 30%.
00:23:24.100And I think Trump mentioned something about this.
00:23:43.300But that's going to be a lag and take a long time.
00:23:45.620The other unfortunate problem was all these illegal aliens and putting pressure on home prices.
00:23:51.400And then we have the institutional investors buying up homes and turning them into rental units.
00:23:58.800And that has to be looked at carefully.
00:24:01.980Obviously, they have a lot of capital put to work and they feel that buying up single-family homes that are cheap and turning people into a class of renters is the way to go.
00:24:12.860And until we figure out how to address that without doing illegal things and preventing capital from going where it's going,
00:24:21.180it's something that is definitely being incentivized by the current administration.
00:24:25.840And I'm sure we could fix that with some policies.
00:24:29.340Ed Dowd, if people want to follow you, stay up to date with all of your analysis.
00:24:33.220It's certainly where I go to get any of my numbers because I trust you implicitly.