Episode 4137： This CR Will Be Mike Johnson's McCarthy Moment
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Summary
On today's show, we discuss the latest budget showdown in Congress, and how Speaker of the House Mike Johnson is trying to get a deal on a short-term spending bill that funds the government until March 14th. We also discuss the impact of the CR, and whether or not it can pass the House.
Transcript
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It's not an omnibus. It's not a long-term deal on the budget. What is it?
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Well, it's an 85-day bill with a whole pile of policies that have nothing to do with general government operations, Katie.
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Usually, speakers have two paths. They could do a long-term omnibus spending bill,
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which funds government for the entirety of the fiscal year, so until September 30th of next year.
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And that could hold, because it's so long, traditionally that could hold a lot more policies
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because people just feel like it's a longer-term bill.
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They're already taking a tough vote, just toss a bunch of stuff in.
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Here in this instance, Mike Johnson did an 85-day, a three-month CR until March 14th,
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so less than three months, bill, and he also loaded it up with a bunch of stuff.
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And I hate to say this because, you know, I don't hate to say it. It's reality.
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Elon Musk has been going on a tear on his platform X over the entirety of the day
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and saying that anybody who votes for this thing should be primaried and should be out of Congress.
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Now, it is a pretty big bill, and it is a very bold, let's call it bold, move by Mike Johnson
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to put all these policies in a bill, everything from health care policy to transferring land for a new stadium in D.C.
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I mean, you could take your pick of a million different policies that people would find objectionable in this thing.
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And I don't know if this could get through the House of Representatives right now or even the Senate.
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It's a big question. And remember, Katie, the government shuts down on Friday night.
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Today's Wednesday. I mean, you don't have a lot of time to work with here.
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This is where we saw Kevin McCarthy really struggle back when he was Speaker,
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before he was ousted by Matt Gaetz and a handful of others.
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And this is the issue of working with Democrats.
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And Speaker Mike Johnson says the reality, which is they have almost,
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they have a majority that is so, so slim that they have no choice but to work with Democrats,
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I was just around a bunch of House Republicans and asked a bunch of them that very question,
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which I think is pretty revealing about how frustrated many of them are
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with the way that this particular budget negotiation went.
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What's interesting about Mike Johnson is that, you know,
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he was among that group of Freedom Caucus Republicans who voted no on all these CRs
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for a good part of his career, became the Speaker of the House,
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and then all of a sudden realized why they happened.
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And he keeps saying every time we get to one of these deadlines
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that this is the last time we're going to do this.
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And then once we clear the deck, then we'll be able to start from scratch.
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His pitch now to his House Republican colleagues is let's just get all this done,
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let's clear the deck right now, and then we'll start fresh in the new year.
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Everything will come out of the Appropriations Committees.
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He keeps promising that that's the future, but he's yet to deliver on that promise.
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So, you know, the margins are going to be tight here.
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I think most people are reasonably confident that they're going to get it passed,
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even if it comes under suspension, which means it requires two-thirds majority
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But there could be a political consequence to Speaker Johnson that we have yet to calculate.
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well, yes, the Elon Musks and the Vivek Ramaswamis of the world are out on X.
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I think Donald Trump Jr. even came out on X and complained about the CR.
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And there is no one who moves the Republican Party quicker than the president-elect.
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And one of the things that Mike Johnson has done very well
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during the short period of time that he's been Speaker
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is develop and cultivate that relationship with Donald Trump.
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And that is part of the reason that he has been able to hold on to that job.
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And if he forces this CR down their throats and survives,
0.52
00:04:08.940
it's going to be because he's convinced Donald Trump
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that it's going to be better for his presidency long term.
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I think this and the confirmation battles are going to be really indicative
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of what it's going to be like during a Donald Trump administration.
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Pray for our enemies, because we're going medieval on these people.
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Here's the time I got a free shot at all these networks lying about the people.
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I know you try to do everything in the world to stop that,
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And where do people like that go to share the big line?
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I wish in my soul, I wish that any of these people had a conscience.
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Ask yourself, what is my task and what is my purpose?
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If that answer is to save my country, this country will be saved.
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Okay, Wednesday, 18 December in the year of our Lord, 2024.
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Jake Sherman, who is on top of everything that happened before President Trump.
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Do we have the true social from President Trump?
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Dave Brat's going to join us for the next hour.
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Tom Emers, remember the way this town works, you have both Democrats and Republicans have
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Those are the heavy pair of hands that are supposed to get votes in shape.
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And once they say, hey, we got the votes, and they cut the deals, the basic to-ing and
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fro-ing or the basic thrust and parry of the deals that get cut to get people in line
00:06:08.080
to vote, the big overall deals will have to be cut by, you know, the majority leader
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Here, Tom Emers, they asked him today, right before he left the air, hey, when's this thing,
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when's this thing, when are you going to be ready for a vote?
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Jim Jordan, I want to report that Jim Jordan, and this is pretty extraordinary because Jordan's
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always been pretty consistent about having Mike Johnson's back.
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So it's extraordinary to have leadership on something that's important, not back to play.
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Vivek Ramaswamy came out with a blistering tweet.
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This is after Johnson used him as a human shield during the Fox interview.
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So I said, well, I talked to Vivek last night at midnight.
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Vivek was, you know, understands we have one-third of one-ninth of one-hundredth of the government.
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Vivek then came out and said, no, he's a hard no.
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Elon has been a no all day and is repeating that.
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And then right after Jake Sherman said that, maybe because Jake Sherman did say that live
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on MSNBC, so you never know what President Trump is watching during the day, President Trump
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Vance and Trump, the statement you were reading before.
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It's very long, so stop me when you want me to.
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The most foolish and inept thing ever done by congressional Republicans was allowing our
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In 2025, it was a mistake and is now something that must be addressed.
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Meanwhile, Congress is considering a spending bill that would give sweetheart provisions for
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The bill would make it easier to hide the records of the corrupt January 6th committee,
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which accomplished nothing for the American people and hid security failures that happened
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This bill would also give Congress a pay increase while many Americans are struggling this Christmas.
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Increasing the debt ceiling is not great, but we'd rather do it on Biden's watch.
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If Democrats won't cooperate on the debt ceiling now, what makes anyone think they would do
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Let's have this debate now, and we should pass a streamlined spending bill that doesn't
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give Chuck Schumer and the Democrats everything they want.
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Republicans want to support our farmers, pay for disaster relief, and set our country up for
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The only way to do that is with a temporary funding bill without Democrat giveaways combined
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If Democrats threaten to shut down the government unless we give them everything they want, then
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It is Schumer and Biden who are holding up aid to our farmers and disaster relief.
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In all caps, this chaos would not be happening if we had a real president.
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I think the deal expires the 3rd of January, and I believe the debt ceiling comes in sometime
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Of course, there's a lot you can do with it between now and then.
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That's going to add an interesting explosive element into this.
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Oh, by the way, oh, by the way, what about the debt ceiling?
00:09:23.300
So your assessment, Natalie, you've spent the day going and last night going through this.
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What is what's your assessment of what this was?
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Not that all of this is particularly relevant, because I don't think this is if it comes to
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the floor now, it's going to come with all Democrat votes and a handful of Republicans.
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And then that means that we get a crappy CR, but we end the speakership of Johnson.
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Well, I would go back to four years ago, because just yesterday was the four year anniversary
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of the infamous Four Seasons press conference with Rudy and everyone who stood up there.
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And today, of course, December 18th is the four year anniversary of the notorious December
00:10:03.980
18th meeting that I think NPR was like, this is the meeting that all the Trump people came
00:10:14.140
We're fighting against the same people and the same forces.
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Because I think you're also seeing coming from Speaker Johnson right now, the same political
00:10:24.060
lack of courage and just fundamental getting played by the Democrats that you saw from
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This is a Mike Pence moment for Speaker Johnson with what he did with this bill.
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Did he did he include just some bad elements in quote unquote his negotiations?
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Because you shouldn't have needed a negotiation.
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You got the votes to pass as just the Republicans or I'm hearing that, you know, Jeffries and
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these guys wrote huge parts of the fifteen hundred pages and they just they just plug
00:10:57.300
Well, I don't know about you, but I do think we were both on the rooftop of the Willard on
00:11:01.220
And last time I checked, we won in a historic landslide victory.
00:11:08.720
So I don't understand why Speaker Johnson is negotiating from a point of loss.
00:11:17.500
So I don't understand why we have to cede ground to Democrats a to begin with.
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But when you look at the provisions, it's almost like the reverse engineer of every
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single vertical that we've been highlighting on the show in terms of the ways that they
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want to come after and kneecap President Trump's second term should be third term agenda,
00:11:36.260
particularly on the pandemic and public health front, the lockdowns, the mandates, all that
00:11:40.740
stuff. But even the marginal victories that Congress was going to be able to gloat about,
00:11:44.900
which, again, no thanks to them, thanks to the work of people like Mike Benz, the censorship
00:11:48.680
stuff, the Global Engagement Center, they're working to extend that for a year.
00:11:53.440
I don't understand how you can even make any case for that, let alone when you drill down
00:11:58.120
and to think more importantly, what's not included there.
00:12:01.020
And what do I mean by that? For all the pork that they managed to put in there to help
00:12:05.320
Senate Democrats, you know what word is only in?
00:12:08.300
What is it? One thousand five hundred forty seven pages, just four times border.
00:12:15.200
And by the way, all the mentions were not let's secure the border.
00:12:17.600
It was just, you know, a passing tacit reference.
00:12:21.880
And I love all the people who are talking really tough right now about how they're not going
00:12:26.380
But not one person wanted their pork, right, or their special cutout, their special privilege,
00:12:31.280
their special interest to be something related to the border.
00:12:33.960
This, of course, coming on the heels of the NDAA, which we were focusing on yesterday,
00:12:38.020
how Section 2890 of that, it wasn't Joe Biden who allowed or okayed the sale, the auctioning
00:12:45.880
It was House Republicans who voted to give Joe Biden's Pentagon, the radical open borders
00:12:50.960
people up there and at DHS, the ability to decide what to do with those outstanding unallocated
00:12:57.960
Does it concern you as a younger person in Ben's that one of the things we've talked about
00:13:02.820
is the suppression of of people on the right and things like the Global Engagement Center
00:13:07.940
being at the nexus of that, that his staff, which are younger policy people, could be so
00:13:14.660
clueless to either let the Democrats negotiate that or just cut and paste from what Hakeem
00:13:19.020
Jeffries. And I mean, if you want to set off people on our side of the football and particularly
00:13:24.580
the smart, you know, the Darren Beatys, the Mike Benz, the Natalie Winters, the Raheem
00:13:28.520
Kassams, it's to add to extend it for a year or the name we was extend the pandemic.
00:13:37.140
And by the way, it's not like this was even hidden or, you know, sub point B in the they
00:13:41.500
created a whole Section 301 Global Engagement Center extension, right?
00:13:46.000
It's so in your face. I don't know how dumb they think that we are. But I think this goes
00:13:50.300
back to something that we've also been honing in on, which is the idea of triaging the 2024
00:13:54.380
loss from the vantage point of Democrats. And Joy Reid has the huge segment two nights
00:13:59.080
ago. Americans have always believed conspiracy theories. Misinformation is spreading. And
00:14:03.520
then the corollary to that is, oh, so we need to clamp down and continue censoring shows
00:14:07.640
like this, go after independent media. So they're giving them a handout, enabling them to do
00:14:12.040
that. And for the first year of President Trump's presidency, it's like when I saw it,
00:14:15.800
it's like insanity. You don't realize if they understand. They're actively being sued by
00:14:20.300
conservative outlets. It's incredible. It's incredible. In fact, this goes beyond controlled
00:14:27.200
opposition. This goes almost to collaboration. That's what's so over the top. Of course.
00:14:32.180
This bill has many bad things, not just the mess. Opposition would be doing a heavy lift
00:14:36.440
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We're heading out to AmFest. Make sure you go to AmFest.com. If you haven't gotten a ticket and
00:16:33.340
you're in the general Phoenix area or Arizona or New Mexico, Southern California, love to have
00:16:38.740
you out there. We're looking forward to a big turnout of the Warren Posse. We're going to be doing,
00:16:43.600
I don't know, 10 hours of shows live. We'll have Natalie be out there, Grace Chung, Mo, the whole
00:16:48.980
crew, Jane Zirkle, and others. And we'll have posts on everybody else, tons of contributors. The
00:16:55.920
ones that are not going in the administration will be with us. It's going to be a great time. 25%
00:17:00.980
off the ticket if you include Warren. AmFest.com slash Warren. Also, home title lock. Make sure
00:17:09.280
with this financial hate. When the president throws in, hey, let's get the debt ceiling in
00:17:13.640
the CR. I can tell you that if President Trump wants the debt ceiling inside the CR this time,
00:17:23.500
we're going to have a government closed down Saturday morning, folks. That's just not going
00:17:27.120
to happen, I don't think. That will be a wild one. Might happen at some point in time, but
00:17:33.880
won't happen in the 24, 48 hours. This may be a DOA's. I'm sure Johnson's right now figuring
00:17:39.500
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they got a home lucky enough to have a condo. Maybe, maybe give us a Christmas, a stocking
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stuffer. How about that? That's a conversation piece. As Natalie Winters laughs.
00:18:04.640
Speaker Johnson might be out of a job. Who knows? He's going to come for your mortgage.
00:18:08.680
Come for your house. You've got a couple of things to read. There's some, there's some
00:18:14.040
good things, Jake Sherman and others. Right now we're trying to ascertain folks what's
00:18:18.960
happening up there in the Capitol because as we said, hey, the German government, the French
00:18:24.400
government, the British government not too long ago, the Canadian government here in the
00:18:29.060
last 48 hours. A lot of these governments are blowing up because of finances. I would
00:18:35.500
actually say Biden was the same thing because of inflation. So you get six or seven of the
00:18:39.240
big ones. And right now the Johnson speakership hangs in a thread because of a, and here's
00:18:47.340
what I don't get, Natalie. You're going to read this. I don't understand how he told Vivek,
00:18:53.300
went on Fox, told Vivek and Elon last night, midnight, brags, we're on a, we're on a tech
00:18:58.420
stream together. And, um, and he says, uh, and they didn't know any of the details of
00:19:04.020
this. Vivek puts out this brutal tweet later that goes through in pretty good detail of
00:19:10.020
some of the basic problems with this. So that he cleared and tell them also, everybody's
00:19:13.840
telling me, Hey, well, you can't jump out there, Steve. You can't get out in front of this
00:19:16.620
because president Trump really loves this guy and supports him. I go, well, Hey, president
00:19:21.220
Trump doesn't support this or he hasn't been read in properly. Then all of a sudden you
00:19:24.800
got Trump dropping a bomb on this guy's head. So you should have told me that before I hosted
00:19:29.920
war room yesterday. No, no, just go for it. We can go out on the limb. You're, you're,
00:19:34.360
you're a new generation. What do you got? Some, uh, Jake Sherman and others. Yes. Let's
00:19:38.480
read. So Jake Sherman just read about 20 minutes ago. The house Republican leadership is
00:19:42.340
also a bit of a mess at the moment. No one knows what Johnson is going to do. The leadership
00:19:47.080
thought his CR was a step or many steps too far to begin with. And I just want to tell
00:19:52.500
a brief anecdote to the audience. You know, I usually peddle in cold hard facts with my
00:19:56.520
reporting, but I was on a walk on the Hill in Washington DC today. And I actually ran into
00:20:02.400
a member who we have on the show quite frequently. You're a walker. You walk all over 30,000 steps
00:20:07.220
a day, 30,000 steps a day, 10,000, 30,000 steps a day. Wow.
00:20:12.340
Well, I listened to MSNBC and stack headlines for citizen free press. I not neurodivergent
00:20:20.120
at all, but very interesting because a Democrat member of Congress, as I was walking with this
00:20:26.920
Republican member of Congress, I didn't know his name. They all, there's a certain physiognomy.
00:20:30.220
They're kind of hard to tell. So I looked it up after, but I literally couldn't tell who
00:20:33.080
it was. He comes over and he goes, this is a direct quote. Yeah, yeah, yeah. Ha ha.
00:20:39.240
I'll vote however you want, but don't come for my pay.
00:20:44.260
He wanted the pay. Is he want, is that interpreted? He wanted the pay increase?
00:20:48.460
Interpret that how you will. I think given the pay increase, the first since 2000, I swear.
00:20:53.520
Wow. Don't come. Wow. I was like, well, you certainly, sir, don't watch the war room. You
00:20:58.240
don't know who I am. You didn't say off the record. But that shows you the problem in this town.
00:21:04.460
What about the, what about hiding the pay cut? I mean, the pay raise, wouldn't you be
00:21:08.320
out front and say, Hey, we got to do this. We haven't had a coal increase in 10 years
00:21:12.480
and we need, or 12 years, however long we need it. You can at least, I think if there's
00:21:15.920
any time in American history where you can message it, now would be the time given inflation
00:21:19.920
and Bidenomics. But I do like the Freudian slip because they deserve a pay cut. That's
00:21:24.160
frankly what they, they need. Um, but no, but that shows you the mindset. I mean, I, I, my
00:21:28.380
jaw dropped. I couldn't believe that a Democrat member of Congress said do not come for my
00:21:34.020
pay. Um, but I, I want to drill down because I do think it is important to get granular
00:21:38.440
on just some of the absurdities contained in it, because I think that's where we're able
00:21:43.280
to mount such strong opposition. So in title six, they have a whole section called the pandemic
00:21:48.820
and all hazards preparedness and response act quite a mouthful. But what it does is essentially
00:21:55.920
reform the public health services act to broaden out the scope and purview, particularly of
00:22:03.060
the CDC. It used to be more so over just influenza and pandemic influenza, but they rewrote that
00:22:10.220
act to make it so the CDC's control, they could extend their tentacles to all pathogens of pandemic
00:22:16.840
causing potential. Now, the other thing that I think was really, really concerning, they added
00:22:21.920
an entire section. So this was not a revision. They inserted this assessing current and potential
00:22:27.480
health security threats from natural disasters with respect to public health and medical preparedness
00:22:32.180
and response. And as someone who has always kind of paid close attention to the vernacular that the
00:22:36.920
WHO's and the UN's of the world use where they try to make, whether it's, you know, racism or climate
00:22:41.800
change, whatever it may be, a sort of public health disaster, a natural disaster that opens the
00:22:47.420
floodgates for something like that to potentially hamstring President Trump. It also extends this
00:22:52.960
act to 2026, which was essentially the act that we had during COVID. So it allows for masks and vaccine
00:22:58.920
mandates. It allows for vaccine passports. It allows for gain of function research. It allows for the
00:23:04.300
hospital bonuses when they incorrectly mark deaths as, you know, a COVID, whatever. It also created
00:23:09.300
BARDA, which was the entity that was funding all the mRNA and gain of function research. And to that point,
00:23:15.180
because, you know, apparently we just have, what, trillions of dollars to waste, the CR omnibus,
00:23:21.380
whatever you want to call it, also mandates that we have to at all times have 12 biocontainment
00:23:26.900
laboratories active. And if there's not, we have to build the outstanding ones. And they have to be
00:23:32.000
biosafety level two or three for, quote, rapid response to biological agents, including emerging
00:23:39.180
infectious diseases. But to me, the most concerning part about that bill text is that it was
00:23:44.940
going to be used to, quote, support information sharing between and the dissemination of findings
00:23:51.180
to researchers and other relevant individuals. With, to me, the buried lead being there, being
00:23:57.520
that opens up the floodgates. You can still send share pathogens, you know, data bank collections,
00:24:02.500
whatever, with the Chinese Communist Party, with countries that are explicitly hostile to us.
00:24:07.220
And to talk about enemies, we'll go with the enemy within. And that is the way that it's
00:24:12.280
section 605. It's subheaded the treatment of electronic services provided for House offices,
00:24:18.120
which it's sort of vaguely construed. It's hard to understand or discern what exactly
00:24:23.480
they're saying. But from minds smarter than my own, the stipulation suggests that the office of the
00:24:30.620
chief administrator and House office general counsel has to, A, proactively inform any member of
00:24:38.440
Congress who's potentially being investigated or if there's records requests on them. And they actually
00:24:44.280
So this would limit, this would limit Cash Patel from, from pursuing Cheney and other people?
00:24:49.360
That's the opening bid. But the worst part is that they put motions to quash or modify.
00:24:54.220
And this is where it gets a little gray, but essentially it suggests that if the House office
00:25:00.220
administrator, it's a girl named Catherine, and I won't guess what her politics are, but you can
00:25:06.280
probably guess where she lands, thinks that whatever documents they may be turning over
0.90
00:25:11.240
are disingenuous or disadvantageous, whatever, to whoever is under investigation, Liz Cheney or
00:25:18.320
otherwise. And it refers to past, current, and former investigations that they can modify those
00:25:24.760
subpoenas. And I would just say, we're very ideologically consistent here in the war room,
00:25:29.300
but that's quite interesting stipulation to be pushing the same day that what they're pushing
00:25:33.140
out the Matt Gaetz ethics report. What, um, are you shocked about process here? This is clearly
00:25:41.600
either Hakeem Jeffries gave him a big section of this and, or this has been negotiated for weeks
00:25:46.980
and weeks and weeks. This is not something they brewed up in the last 72 hours. No, no, definitely not.
00:25:52.800
It's 1,547 pages. The CR text itself is about eight pages. The, uh, overarching kind of like guidebook,
00:26:01.320
the, the title summaries for the rest of the stuff they put in is longer than the actual CR text
00:26:06.780
itself. Um, this is, you know, I love the, they accuse us of, you know, waging retribution warfare
00:26:11.780
against, you know, the enemy within this is retribution against the American people for electing
00:26:16.640
Donald J. Trump. I mean, it's very clear what they're doing. Your point is, Hey, we just had a
00:26:21.080
definitive verdict from the jury of, of the American people. And here they put all of this in
00:26:25.640
with a bunch of these, uh, uh, gimmicks to, to really chop. I think gimmicks is too nice to
00:26:32.540
you for mystic. You're talking about the potential with, we all know what they're doing with bird
00:26:36.980
flu right now under what they've put in there. You could see a COVID 2.0 and I'm not just talking
00:26:42.940
because they got the gain of function research stuff coming out of the bird flu out of California
00:26:46.220
right now. And president Trump would be totally kneecapped, walked in, right? Totally hamstrings.
00:26:50.900
How this shows you, this is why Johnson's got to go obviously in his, in the, in the
00:26:55.600
team, uh, his internal team. Uh, hopefully Jim Jordan and others will step up because
00:27:00.800
we got to get a grip on this thing. Now I, I think the recommendation is, is pull it, but
00:27:05.520
if president Trump said now include the debt ceiling, you know, we're going to have a whole
00:27:09.140
discussion of that, but I would just give them a two or three liner, figure out and just
00:27:13.080
tell the farmers, Hey, you're going to have to hang on for another 30 days or 60 days.
00:27:17.300
And, uh, in the same with the, the, the relief, I think the relief, they got enough cash. I
00:27:21.540
understand in FEMA, it's just a fact that Biden is holding it back and will not give it. This
00:27:27.260
is where I think you got to start playing hard ball with these guys are absolute total mess.
00:27:31.720
They've had forever to work on this and, and drop this at the last second. I happen to think
00:27:37.180
we're pretty odds on that the government's going to at least close down, which I hate. I'm
00:27:40.640
all for closing it down. And when president Trump shows back up, let's pass it the first
00:27:44.560
day and open the government back up in the afternoon of his, uh, of his inauguration,
00:27:48.760
uh, amfest.com promo code war room, 25% off. We're heading out there tomorrow. We'll be
00:27:54.620
live at amfest morning and afternoon show Thursday morning. Don't sit in the front row for your
00:28:00.300
speeches unless you want to have a microphone. I'll be doing, I guess, Don jr. Tucker myself
00:28:05.500
tomorrow night. Uh, I believe is the rumors is the, is it been announced that the president
00:28:09.800
coming? Yeah. And so is Speaker Johnson. So that'll be interesting. We'll see what's
00:28:14.200
the overrunner of that. Okay. Short commercial break. Philip Patrick Birchgold next in the
00:28:17.860
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00:29:51.840
Okay. Government gangsters. Cash, we haven't had time today and we're not. Hopefully we'll do
00:29:59.140
it tomorrow. They're in full meltdown on Liz Cheney. They're in full meltdown on the end
00:30:02.480
of democracy. This is all they're covering. We are trying to stick with the important stuff
00:30:07.760
right now, which is, I don't know, keeping the government open. I'm all for letting it
00:30:12.300
ride, baby. You know, you're still going to get the social security checks, all the important
00:30:15.760
stuff you're going to get, but just let it just let it go. And right now we just got
00:30:21.780
can you. So no more votes today, right? It's been reported. I'm getting congratulations from
00:30:28.360
different people at senior levels. I guess maybe the word is out on something else, but
00:30:32.220
no votes today. So they pulled no more votes. At least they pulled it for today. Yes. That
00:30:36.720
means, you know, unless they voted tomorrow morning early and get a Senate, there's not
00:30:41.560
I think this thing's going to shut down. So there I think some people are going to be
00:30:44.640
here for Christmas. I don't think this thing's going away anytime soon. We'll drill more into
00:30:50.140
that into the next hour. Dave Brat's going to join us live. I want to go now to Philip
00:30:54.620
Patrick of Birch Gold. Philip, the president just tossed kind of a, I don't know, kind of
00:30:59.640
a bombshell into this. He wants to deal with the debt ceiling now in a CR. What is your
00:31:06.120
thought? You had the Federal Reserve did another cut. We advised Powell on War Room not to do
00:31:14.380
that. I think he also implied no cuts for next year or maybe nothing for 2025. I don't
00:31:20.540
know if that's the chop block Trump. Markets are in total turbulence. I think it's seven
00:31:25.100
or eight days in a row, which is, I think, a record from, you know, 30 or 40 years ago
00:31:29.340
for the Dow without with even a dead cat bounce. It's probably a pretty good time, Philip, besides
00:31:36.240
the macro you're going to give us. I think the audience for Christmas and for ease of mind,
00:31:41.740
just contact Birch Gold and talk to Philip and the team about various alternatives. And
00:31:46.960
quite frankly, why gold has been a hedge against financial times of financial turbulence for
00:31:53.120
five to 10,000 years. I mean, gold's been on a roll like nobody's business for the last
00:31:57.420
couple of years, but that's traditionally, as you know, Philip, gold doesn't really traditionally
00:32:01.300
move like that. It's a, it's a store of value instead of like a hot running stock, but it's
00:32:07.340
performed like a hot running stock. Your thoughts as we sit here on this Wednesday afternoon in mid
00:32:13.200
December, close to the end of the year, Philip Patrick. It's, it's, it's interesting times to
00:32:19.940
say the least. As you say, gold is, is on a tear. It has been for the last number of years, certainly
00:32:25.560
through Biden's administration, but really started to change at the turn of the century. The gold since
00:32:31.160
the turn of the century has outperformed a lot of other asset classes and it's tied into money
00:32:36.220
supply, right? We've seen what the administration has done over the last four years, but we started
00:32:41.580
massively increasing the money supply towards the turn of the century. There is a direct
00:32:46.400
correlation between growth in the money supply and growth in precious metals. Put that into the
00:32:51.520
context of the last four and eight years or four years really respectively. And I think it tells you
00:32:57.180
where things are heading. Things are, as you say, shaking up in the economy. The Federal Reserve cut
00:33:02.980
interest rates today. Yet, despite that, they released a new dot plot forecast suggesting higher
00:33:09.540
for longer. The interesting part was the neutral interest rate or R star rate, which in 2023 was
00:33:17.140
one and a half percent. They've now moved it to three percent for the foreseeable future. It's going to be
0.55
00:33:23.000
working against Trump's economic plan. Ultimately, he's a supply side guy. He's looking to grow the
00:33:29.160
economy next year. That's going to make it a little bit tougher. It also is going to put a highlight
00:33:35.500
on deficits and, of course, debt service, which is already at unmanageable levels in a higher interest
00:33:43.440
rate environment. That's going to become more urgent for the administration to try and deal with. So just
00:33:48.900
more and more problems for President Trump to be dealing with come January 20th.
00:33:53.600
I gave the speech on Sunday night about talking about the bond market and how of all the problems
00:34:01.860
he has in crises, he's stepping into the beginning stage, the kinetic part of the third world war.
00:34:07.600
He's working on plans to seal the border and begin to commence the mass deportations of 12 to 15
00:34:13.380
million folks. But it's really that third, the economy, the debt ceiling, all of it for the bond
00:34:18.660
market. The bond market has been a little choppy. This is what my concern is, is that
00:34:22.840
it's turfed out the government of France. It's essentially turfed out the government of
00:34:27.160
Germany. It turfed out a while ago, the government of England is crushing the current government.
00:34:33.140
It's just turfed out the Canadians. It turfed out Biden, you know, because of the inflation.
00:34:40.960
Give me your sense of the bond market, how are they responding, particularly to President Trump's
00:34:45.260
plan? Because all you hear, and this is why I didn't like the rate cut, you hear people always
00:34:48.720
plan so inflationary. What's he want to do on tariffs is inflationary. What's he wants to do
00:34:53.180
on sending the migrants, the illegal migrants home is inflationary. What's your sense of the bond
0.87
00:34:59.180
market right now? It's interesting. And I think this is the thing to watch. Look, I believe in
00:35:05.560
Trump's economic plan because supply side growth boom is literally the only way out of it. We're at a
00:35:11.700
point where austerity is not going to do it. Now, Trump's plan focuses on deregulation, innovation,
00:35:18.100
productivity, growth. The problem is there's not something you can legislate, right? The best you
00:35:23.100
can do is create the conditions, create a healthy economic environment. And that's not cheap to do,
00:35:29.120
right? It's going to involve some spending. But here's the issue as I see it. And this is,
00:35:33.840
I think, the battle that President Trump is facing. The U.S. today is about 25 percent of the
00:35:39.540
world's GDP, right? Yet, by the way, nothing to sneeze at with the world's largest economy,
00:35:44.920
yet we already have 60 percent of the world's capital investment, right? What that means is
00:35:50.160
the world is already heavily invested in American economic growth. Here's the problem. Trump's
00:35:57.680
economic plan is a huge gamble, right? The one thing we know about borrowing to boost the economy
00:36:02.580
is creditors don't care how you spend that money, whether it's building bridges or wasting it on
00:36:08.700
hydrogen factories in the Nevada desert. They're going to want their money back. The big question
00:36:14.980
is, are investors going to continue to pay the bill? Are they going to line up and finance Trump's
00:36:21.400
economic agenda? Early signs are concerning. PIMCO, obviously, I think now the second largest bond
00:36:28.880
manager in the world, they've said they're concerned about the sustainability longer term of the United
00:36:34.760
States, citing inflation and just general fiscal sustainability. Now, Trump has a plan for fiscal
00:36:42.160
sustainability. But as you and I know, it's a long term plan. So the question is, in the meantime,
00:36:47.860
are they going to start taking those trillions of dollars and looking for opportunities elsewhere?
0.59
00:36:53.880
If they do, there's not much President Trump can do about it. Debt costs will skyrocket and it'll
00:37:00.560
force the position. So there's a big gamble here. There isn't a better man to have at the plate than
00:37:06.760
President Trump. But people have to understand the task in front of him. Yes. This is why I say the
00:37:13.460
bond market is everything. There was a discussion last week, Zero Hedge picked it up and other people
00:37:19.600
that if you look 400 days in the future, which would be the anniversary of the first year of President
00:37:25.580
Trump's second term, his third victory, but second term, and that traditionally is one in second
00:37:30.980
terms, when people get most of their work done, there'll be $40 trillion face amount on the balance
00:37:37.620
sheet. And that is, you know, at that time, increasing by a trillion dollars every 100 days.
00:37:47.240
It's not sustainable at all. And that's what I'm trying to stress. The gamble here is significant,
00:37:56.700
right? We're hoping that GDP growth will outpace debt growth. But that's a tough task. Since the
00:38:02.480
1970s, debt has averaged 8.5% of growth a year. GDP has averaged 3%, right? Like I said, we're already
00:38:10.960
a mature economy. It's going to be a tough thing. I'm very excited for Trump's plan. Tax cuts will help
00:38:18.540
to boost the economy. But we're going to have to make up for that loss in revenue. I think Doge can
00:38:24.060
do it. I think tariffs can do it. But they're not going to stop deficit spending. We need to spend
00:38:29.400
more productively. And we need to start seeing the effects of that spending quickly. But it's a tough,
00:38:35.020
tough, tough task. Look, I have a lot of faith in President Trump. But I'm diversifying
00:38:40.780
myself. I have faith in the American people. The American economy is my big concern today.
00:38:46.920
PIMCO are diversifying, and I'm diversifying as well. And I think everybody else should be looking
00:38:52.360
at it. It doesn't mean we're betting against the U.S. We're just being prudent and making sure we're
00:38:57.940
hedging those bets. Well, somebody else is diversifying. They had a story in Zero Hedge about
00:39:06.220
Goldman Sachs has now come out and has said, and I'm not, I don't quite totally understand the
00:39:11.700
calculation. But their reporting is that the Chinese, the Central Bank of China and the Chinese
00:39:18.020
government may have purchased three times more of gold than has been calculated. And you and I talk
00:39:24.540
about record purchases from India, from Russia, from the Saudis, from sub-Saharan Africa, and from the
00:39:31.560
Chinese particularly. Do you have any insights on that? Is that close to being true?
00:39:37.700
Yeah, China are purchasing huge amount. Unofficial purchases, though, not by the People's Bank of
00:39:44.900
China. The thing about China, they have government entities and they purchase through. But understanding
00:39:51.340
what's happening coming out of China is tough to do. Something else that's very specific about the
00:39:56.660
Chinese, they don't allow any exporting of domestically mined gold. So they have their
0.99
00:40:01.640
national interests at heart. But we're seeing central governments around the world setting
00:40:07.560
records for gold buying. You mentioned India, but there are others as well. The BRICS have been driving
0.95
00:40:13.680
gold buying in an attempt to de-dollarize. Look, at the end of the day, when you have a debt problem on a
00:40:20.080
global scale, gold is what central banks turn to, to shore up balance sheets. And they're doing it
00:40:31.060
Do you see other, I mean, the Canada got blown up last night, England about a year ago. The French,
1.00
00:40:37.980
they just put a new moderate in. Germany is called for early elections. You could argue the US,
00:40:44.880
your sense. Other governments are going to fall because of their mishandling of their own
00:40:55.060
We're saying the same issue repeat itself around the world. And I think it's well-timed that we're
00:41:00.840
coming out with the sixth installment of the end of the Dollar Empire series, which talks about modern
00:41:07.200
monetary theory, which I think largely is responsible for the problems we're seeing around the globe.
00:41:12.840
But the situation we're in, it reminds me of a quote I saw from Henry Kissinger. It said,
00:41:18.180
I think Trump may be one of those figures in history who appears from time to time to mark the
00:41:24.600
end of an era and to force it to give up its old pretenses. And I think what's clear is the 80-year
00:41:30.880
post-war era of debt-fueled prosperity is over. Trump is the herald. He's ushering in a new age,
00:41:38.040
and we're going to have to see how it shapes out. But I think we'll continue to see volatility.
00:41:42.940
We'll see squeezes on other foreign governments. It's going to get interesting next year. I just hope
00:41:48.340
we come out of it unscathed or intact, I should say.
00:41:52.020
How do people get our new combined work, the modern monetary theory, the idea that broke the world?
00:41:59.940
Very simple. Birchgold.com forward slash Bannon. Birchgold.com forward slash Bannon. They can get
00:42:09.000
the first five in the series. The sixth, I think, will be ready early next week. So Birchgold.com
00:42:16.460
forward slash Bannon. That'll get them access to the end of the dollar series, as well as information
00:42:22.000
on how and why to invest in precious metals. We also have a guide on how to invest in precious
00:42:28.760
metals under a Trump administration, which really talks about the challenges that President Trump's
00:42:34.080
facing in his second term. So Birchgold.com forward slash Bannon. That simple.
00:42:41.100
Remember, if you've got a phone, it's Bannon. Text Bannon at 989898. You get all about the IRAs,
00:42:46.520
401ks, all the information, totally free from the team at Birchgold, and now more than ever,
00:42:53.000
particularly if we add the debt ceiling in there.
00:42:54.600
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Okay, we're jumping out of here. You've got to say goodbye. We're going to see you later. We're heading out to AmFest
00:44:31.140
with a whole crew of folks. It's exciting. Any closing thoughts? I'm going to be here for the first
00:44:35.240
part of the next show because I've got to pivot. It's the 80th anniversary of the beginning of the
00:44:40.280
Battle of the Bulge. Patrick O'Donnell is going to join me. Also, Tej Gill. And we're going to talk
00:44:45.780
about Ukraine. Got to talk about my favorite topic, Ukraine. Just absolute mess over there. Just very,
1.00
00:44:50.840
very, very bad. And Ben Harnwell's got some great reporting from Rome. Any closing observations? I guess
00:44:56.520
we live to fight another day on this. My closing observation is that you don't call them Polly
00:45:00.360
Pockets anymore. I did. I did. I think I did today a couple of times. I did. It slipped out. I
00:45:05.620
shouldn't. There's no need to make this personal, although I do quickly. It's just this has to
00:45:10.920
change. We can't because these are the easy ones. This is so easy. This is a baby stop. This is the
00:45:16.000
opening act. Opening. But even opening act sometimes. Right. This should be. This is the crew coming to make
00:45:21.580
sure the sound system works. Exactly. This is so easy. And folks, the like even throwing the debt
00:45:26.960
ceiling in there, the debt ceiling is that's complicated. Right. So and that's just one
00:45:33.220
complication of 100. I spent a lot of time in New York over the weekend with a lot of finance people
00:45:38.040
kind of walking through how everything has to converge. President Trump can do this. He's unleashed
00:45:43.520
the animal spirit. You see the people much more saying, yes, this economy is coming back. But
00:45:48.300
we have big structural issues. And of course, capital markets that the bond market where
00:45:54.320
we're going to finance all this could turn against us. So President Trump's got his work.
00:45:58.400
The only guy in the world can pull this off is Donald Trump. So we got to have his back
00:46:02.920
just that it's going to this one's easy. Johnson blew it. It's just disgraceful.
00:46:07.300
The pay raise to cap it off. Unbelievable. Natalie Winters. Thank you so much. We'll we'll see
00:46:12.820
you. We're going to be live at AmFest tomorrow. AmFest.com. Put in War Room and you get
00:46:17.840
a 25 percent discount. Anybody in the area, come on down. We're going to absolute, absolute
00:46:22.220
blast. The cash Patel cash is getting rave reviews on Capitol Hill today. We haven't shown
00:46:29.420
you, but CNN and particularly MSNBC, they're not covering what we're covering at all. They're
00:46:35.660
literally talking about Liz Cheney, President Trump, you know, Latimer came out with a with
00:46:40.920
a criminal referral, I guess, over to the FBI for her for activities on the J6 committee
00:46:45.360
and and and other things going on. This is the new fascism, the rise of the new fascism,
00:46:51.100
et cetera, et cetera, et cetera. They're they're maniacally focused on that.
00:46:55.220
Cash Patel's movie, because they're all over cash now, is going to the FBI.
00:46:59.780
Government gangsters go to warroom.film. Very proud that we're going to be making some
00:47:04.120
announcements over the Christmas holidays, I believe, about a much more aggressive program
00:47:09.180
on both our books, which we're really excited how great the publishing arm has gone and
00:47:14.020
and also films with Cash Patel's warroom.film. Go there today, download it, share it, talk
00:47:21.980
about it over the holidays. You really walk through Cash's thinking when he talks about
00:47:27.340
the deep state in the administrative state. And he is, but Senator Tuberville told us today,
00:47:32.360
Pete Hex has been great in the room. Pam Bondi's been great in the room. Bobby Kennedy's been
00:47:37.840
great in the room. Cash Patel's been great in the room and the others that they've seen. They're
00:47:42.080
coming very well prepared and kind of on point. Mike Lindell joins us. Mike, we're running up now
00:47:48.180
to the Christmas holidays. People want to know what can they do to get their gifts from my pillow,
00:47:56.520
sir? Well, first of all, everybody, I'm going to miss you at AmFest because I've been here
00:48:01.340
busiest time of the year and and but I'm there in spirit. And this is the last night you
00:48:07.700
guys. There is a shipping option available. You can still get them, but they have to be
00:48:12.340
ordered now. You can still get them by Christmas. So I would do that for the warroom posse. And
00:48:17.840
so check it out. There's different shipping options available. And if you want them two
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day or whatever, it's different, different pay things. And once we still have the free
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shipping available, but that will not get you there by Christmas. That's it. And the order
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is over 75. So there's a lot of different options available. One thing I did do is I put
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left everything on sale for you that was exclusive to the warroom posse. This is a once a year
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exclusive. We're doing keys of dream sheets, 69.98, 70, 98, 98 for the king. We have all
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the other sizes, all the colors. This is the, this is my favorite product. This is you. You've
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never slept on sheets like this. They make the best gifts ever to promo code war room. Go
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to the website, you guys, and go down to you. See our great leader, Steve there, click on
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them. And here it is. All of the specials are still up. Get yourself a Christmas present,
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a bed, a new bed, 50% off, $100, 50% off plus another $100 for the warroom posse. A mattress
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topper, you know, you're going to need great rest over, over the, over the next few weeks and
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going in, feeling great going into the new year, but all the sleepwear that came in up
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to 80% off. These are war room exclusives. They're all still up there. And we still remember
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we still have that there. It's at least one shipping option to get there by Christmas.
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So take advantage of that tonight. This is it. You guys, 800-873-1062 and tell them that
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you got promo code war room. My operators love the war room posse. I've been spending the last
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four days here in Minnesota. I'm going to spend the rest of the week here. And you guys
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made it possible that we're getting through the biggest attack that a company could ever
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take this year. And we thank the war room posse. So it's a win, win, win, Steve. And, and
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you guys, but Christmas guarantee goes to March 1st of 2025. So get those presents now.
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Fantastic. Mike, we'll see you tomorrow morning. We'll be live from Amfest and you'll be on the
00:50:18.440
factory floor. So we'll, we'll, we'll hook you in and you'll get to meet all the posse
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Warpath.coffee. Go check that. Tej Gill. Tej Gill will be up in the next segment. The
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coffee best ever made. Also Sacred Human Health. Got my grass fed beef livers. So much more.
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Just go to the site Warpath or SacredHumanHealth.com. Go check that out today.
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Got immunity products. You've got, you've got the grass fed beef liver, magnesium, D3, all
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of it. Also, don't forget, particularly for the holiday season, National Pulse. Go to
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NationalPulse.com. Rahim and the team putting up great news 24-7. Kind of the, it's a war room
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posse's site. Plus the, the long term followers of Rahim Kassam, which are many. His, his amazing
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analysis and reporting. Rahim's going to be in Amfest with us. He'll be on the show all three
00:51:21.440
days that we're out there. Look forward to it. Next, we're going to take a short commercial break.
00:51:25.820
Stick around. I've got Patrick K. O'Donnell. Patrick K. O'Donnell. He of the, being a combat historian,
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I wanted to make sure that we kicked off really the commemoration of the Battle of
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the Bulge. Kind of walk you through it. He'll join us. Taze Gill is going to give you his
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sense of that battle. And then I got Ben Harnwell. I got to talk about the Ukraine. A lot
00:51:47.580
of, a lot of stuff going on in Ukraine. Particularly people are trying to get, they're trying to
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get President Trump and trying to suck him in the things that we don't want to get sucked
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into. You're going to see it all about these security guarantees, more money, all of it
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in the Ukraine. Short commercial break. Also, Dave Bratt is going to join me. From the Book
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of Revelations, when the man comes around, he's going to take us out for this hour. Back in a moment.
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sacredhumanhealth.com. And cheers to your health.
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700,000 Americans every year. Yes, heart disease is the number one killer every year, year in and year
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