Episode 4337： Frontline Federal Leftist Judges
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Summary
A government shutdown would be devastating to the economy, the economy and the economy's ability to function. A government shutdown is when the federal government shuts down without a budget agreement being reached, and Congress is unable to get back up and running.
Transcript
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The cost you see to the constitutional order of a shutdown that isn't already being done now.
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It's a dramatic cost. Here's why, Chris. Under a shutdown, it is the executive branch,
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in this case, Trump, Musk, Doge, and Vogt, who's head of the OMB, who we all know are
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authoritarians, vicious, nasty, who would have sole control over what is funded and what isn't.
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But they get to determine what is a, quote, essential service, and they will just cut
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to smithereens, far greater than in the CR bill, which is a lousy bill, far greater than
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that, what could be funded and what couldn't. And there's no recourse. You can't go to court.
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This is a decision totally in the executive branch. And so it would be devastating. Why
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is it that Elon Musk and Donald Trump want a government shutdown so they can take control
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of the government and do their vicious, horrible things? They could cut half the government.
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They could tell employees you're not essential and never bring them back, permanently firing them.
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It's a disaster. And in a few weeks, if there was a shutdown, everyone would be complaining and
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howling. Why did they cut? Why did they eliminate SNAP? Why did they cut so much of Medicaid? But they
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could do all that on their own. That's the problem. There is no check on them with a shutdown.
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That's not to say this CR bill is a good bill. It isn't. It didn't have any safeguards in
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it. But it would be much, much worse to have a shutdown. And my job, Chris, as leader, is
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to see things a little bit ahead, down the road, and see how horrible this would be and
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Would you... What do you think of the job that Chuck Schumer is doing? Would you ever challenge
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I think that what we need right now is a United Senate Democratic caucus that can stand up for
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this country and not vote for cloture and not vote for this bill. And I think that the strength
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that we have is in this moment. Reconciliation and all of these... Republicans do not need
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Democratic votes for that. They need it for this. And so the strength of our leadership in this moment
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is going to demonstrate the strength of our caucus. And I cannot urge enough how bad of an
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idea it is to empower and enable Donald Trump and Elon Musk in this moment. It is dangerous and it
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Well, the only thing that gets their attention, the only thing that gets them to back down
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is meeting conflict with conflict. If you meet conflict with essentially managed retreat or
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strategic non-engagement, then they roll all over you.
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We are going to conflict with them on everything. On the tax cuts for the billionaires. They've
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become a plutocracy and oligarchy. On Medicaid. We have plans to conflict them with all of that.
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If the shutdown occurred, we wouldn't be able to do that because they would fill up both the Senate
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and the discussion on whether we should cut this and not cut that, of things that they want to cut.
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So to to have the conflict on the on the best ground, we have summed up in a sentence that
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they're making the middle class pay for tax cuts for billionaires. It's much, much better not to be
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in the middle of a shutdown, which to divert people from the number one issue we have against these
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bastards. Sorry, these people, which is not only all these cuts, but they're ruining democracy.
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And one other thing on a shutdown, on a shutdown, the courts could close or at least be totally,
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totally disabled. And the courts are one of the best ways we've had to go after these guys.
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Colleagues, House Republicans are already using the term Schumer shutdown, which has that nice
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alliterative, alliterative style. Are you not worried at all about Democrats taking the heat for the shutdown?
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We know and the American people are are not going to have the wool pulled over their eyes.
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Everybody knows that Donald Trump is president, that Republicans have the Senate and Republicans
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have the House. They have the keys to the entire United States government. And if Republicans wanted
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to avert a shutdown, they can. They can. They can. If they need Democratic votes, then they can
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negotiate with Democrats to get those votes. It is simple. They have two options to pass it with
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their votes or to pass it with Democratic votes. And we also see the data bearing this out.
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When you look at public polling from very reputable firms, we see that the American people understand
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that. And they know that that the party in charge of government is the party that's in charge of
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keeping government. This is the primal scream of a dying regime. Pray for our enemies, because we're
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going medieval on these people. I got a free shot. All these networks lying about the people. The
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people have had a belly full of it. I know you don't like hearing that. I know you try to do
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everything in the world to stop that, but you're not going to stop it. It's going to happen.
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And where do people like that go to share the big line? MAGA Media. I wish in my soul, I wish
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that any of these people had a conscience. 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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Friday, 14th, March, Year of Our Lord, 2025. It's going to be another crazy Friday. President
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will be signing executive orders about one o'clock at the White House, around one o'clock.
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Sometime this afternoon, the official surrender of the Democratic Party will take place in the
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Senate as they'll vote to continue on President Trump's government without a fight. And then
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President Trump, Donald John Trump, the 47th President of the United States, by the way,
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who is chief executive officer of the United States government. He's commander in chief
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of the Uniformed Military Services, and he's also chief magistrate and chief law enforcement officer.
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In that third role of chief magistrate and chief law enforcement officer, he will head
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to the Justice Department today for remarks, maybe a little Q&A. It's Pam Bondi and I think
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Cash Patel will be there. We got so much going on. And so the Democratic Party is in a total
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meltdown. They've been trying to go on offense by going to these red districts to get this
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big plan of how to do it. Also, they're engaging. They're engaging right wingers in media more
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than ever. The people that lost so badly for them are in meltdown about that. And just in the
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middle of this, and they're getting really, I think, pretty significant legal victories, at least
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with these radical lower court justices. But in the middle of this, Schumer is surrendering today,
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and that has caused a complete and total meltdown. The House to a person, except for Jared Golden up in
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Maine 2, which is really a Republican district in Maine 2, voted to shut the government down.
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And Schumer, I think, is constructed to get eight Democratic votes over, say, Fetterman plus seven
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or himself. He and Fetterman plus five or plus six to get to get to the eight. A full surrender,
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and that's really put a chop block of any momentum the Democrats thought they had. So we're going to
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get into all of this, the geopolitics of it, the capital markets, the economy, economic part of it,
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gold's over 3,000 this morning, stock market up a little bit at the open. Let's go ahead and play.
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We've got Besant's comments with Boyle. We've got some swatting victims. One of the things they're doing
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in the game, much nastier on threats. Everyone I know is getting threats, death threats, other threats,
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swatting. They're trying to do suicide by cop. We're going to get to all of that. But I got the
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great Mike Davis. I have an open for Mike Davis because right now of all the fights you see on
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the legislative side, they're surrendering. They ain't surrendering in the courts, and they're
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getting some traction because of radical justices. These frontline federal judges are also playing
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the role of prosecuting the case against the government, against President Trump. Let's
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go ahead and play and bring in Mike Davis. All right, update. As we reported at the top of the
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show, a federal judge in California today issued a blistering ruling from the bench in which he
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ordered the Trump administration to rehire thousands of people they had fired from the
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federal government at USDA, Defense Department, Energy Department, Department of the Interior,
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the Treasury, and the VA. Well, I got two updates for you because tonight, just as we are coming on
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the air, the plaintiffs in that case, the California federal case, the plaintiffs are the union
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representing government workers. Plaintiffs went back to that same judge in California and essentially
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said, thank you for this ruling today, Your Honor. Can you please make it so it applies to even more
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agencies? They have now formally asked the judge to expand that order today to also order the
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reinstatement of fired employees at the Commerce Department, Education Department, Health and Human
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Services, Homeland Security, Housing and Urban Development, the Justice Department, Department of
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Transportation, the EPA, NASA, the National Science Foundation, and the Small Business Administration.
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Update one. Here's update two. Just minutes after those plaintiffs asked the California federal judge to
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expand his ruling and order even more agencies to rehire even more people, a second federal judge
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across the country in Maryland issued a ruling in an entirely separate case ordering the federal
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government also to rehire thousands of fired federal employees. This federal judge in Maryland tonight has
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just ordered that thousands of fired probationary employees must now be reinstated at, ready for the
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list, Department of Agriculture, Department of Commerce, Department of Defense, Department of Education,
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Department of Energy, Health and Human Services, Homeland Security, Housing and Urban Development,
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Department of the Interior, Department of Labor, Department of Transportation, the Treasury Department,
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VA, USAID, the Consumer Financial Protection Bureau, the EPA, the FDIC, the General Services Administration,
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the Office of Personnel Management, the Small Business Administration, and the National Archives and
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Records Administration. All of them. Reinstate all of your fired probationary employees.
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And if it seems like there's overlap between the list in those two cases, you are correct. As of
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tonight, just in today's news, we've got overlapping federal rulings ordering the immediate reinstatement
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of thousands of employees at multiple federal agencies. I'll tell you, the Maryland judge writes in this
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new order that's just out tonight, quote, the law is clear that when dismissing an employee due to
00:11:01.040
unsatisfactory performance, the employer must honestly be dissatisfied with the probationer's
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conduct or performance after giving him a fair trial on the job. Again, two federal judges tonight with
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equally sweeping rulings, both in the same direction, both telling Trump, when you fired those people,
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also about where money goes at these first level across the nation in like in San Francisco or in
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Maryland, they're also issuing injunctions for the entire country. And it's on everything President
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Trump's doing. It's just not personnel, which they're really ramping up. But it is also restricting
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payments. I mean, essentially doing an executive does. Can you give us a tour de horizon of where we stand
00:12:06.760
now? Because last night on the shows, they didn't want to talk about Chuck Schumer. Chuck Schumer was
00:12:11.100
the third or fourth story they got to. The first story all night long was their wins in federal
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court, sir. Again, the American people gave President Trump a broad electoral mandate to cut
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waste, fraud, and abuse to make our government work for us instead of us working for our government.
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And President Trump is doing that. That's the unthinkable in Washington. He's actually doing what he
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promised American voters he would do. And that includes getting rid of these federal employees
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who do not provide value. These probationary employees who the Biden administration hired over
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the last year or two, the Trump administration made a determination on an individualized basis
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through these agency heads that these probationary employees are no longer useful. So they got
00:13:04.480
a pink slip and got sent packing as they should have all these Biden hires, right? And what they're
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doing is they have these plaintiffs, these unions and these left wing activists running to these
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left wing activist judges, and they're getting illegal, unconstitutional orders from these activist
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judges. These activist judges are trying to tell the president of the United States that he does not
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have power under Article II of the Constitution, the executive power, the power of the chief executive
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officer as the commander in chief to hire and fire employees, including overseas foreign service
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officers, including telling the president what he can do for military readiness and morale.
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This is unacceptable what these activist judges are doing. If these fired employees want to get
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redress, they go to the Merit Systems Protection Board and they can get monetary damages. But for an
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activist judge, two activist judges now saying that the president of the United States has to rehire
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fired executive branch workers against his will, violates Article II of the Constitution. It violates
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federal statute. These judges don't have the power to do this. Mike, hang on for one second. I'll
00:14:25.580
hold you through the break. The Mike Davis, the Viceroy, joins us live to engage in the judicial
00:14:35.720
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Welcome back. If you notice in that first, in the cold open, Mike Davis, the principal reason
00:17:22.700
that Schumer gave for keeping the government open for his basic surrender today is because
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he feared we would shut down the courts. And he says, this is the way we're winning right now.
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Can you give your overall assessment? Because this is where, and all their other failures,
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this is the one place they've gotten traction, sir.
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It shows you how illegal and unconstitutional this strategy is. The American people elected
00:17:51.920
President Trump. They gave him a comfortable majority in the United States Senate, and they
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gave him another Republican House. The American people gave President Trump a broad electoral mandate.
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And these Democrats know they're not going to win in the House so long as the House sticks together.
00:18:10.180
They're not going to win in the Senate. And so they have to run to their activist judges in the
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courts. They're judicial saboteurs. And remember this, a federal judge's job is a modest but crucial
00:18:21.560
job. They decide cases and controversies before them, with parties before them, with redressable
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claims. The courts find facts, then they apply the law to those facts, and then they order a remedy
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permitted by the law. And that's it. Judges wear robes. They don't wear capes. They don't set national
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policy. They don't, certainly don't set foreign policy. They're not the HR department for another
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branch. They can't tell the president who he can hire and fire.
00:18:54.020
Okay, but here's what I don't, here's what I'm, I'm confused about. Corn fused. The president's
00:19:04.140
chief executive, why are they, why are we doing all these backflips that the probationary guys
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didn't live up to the probation? Then he get into the argument about individual. Doesn't the chief
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executive have the ability to say, hey, we're going to downsize this company, country, government,
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and, you know, X amount of people. We're going to start with the probationary because they don't
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even have officially have jobs yet. And if there's 80,000 probationary period of people, I thought that
00:19:29.100
I heard that might be up to 150,000 that guys would just not, since we're going to be cutting other
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people later in a series of rifts, um, that the ones that don't have long-term jobs or haven't even
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qualified, they're still on probation. No matter how you're doing, you can be a superstar. We're just
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downsizing. And in downsizing, you know, we're not, we're not going through and making evaluations
00:19:51.760
here. Correct me if I'm wrong. We're getting into a debate in the court in San Francisco about who
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performed, who didn't perform. I mean, that's where the judge went crazy yesterday because the response,
00:20:03.820
our response looked a little, you know, slapped together. But doesn't he, as chief executive,
00:20:09.040
he just had the right to say, hey, just like he has the right to say what you're going to argue on
00:20:13.000
the impoundments. Guess what? I'm not going to spend the money, right? That was, that was a,
00:20:18.340
that was a, the appropriations is a ceiling. And, uh, you know, I'm going to reprogram this or I'm
00:20:25.040
going to, I don't think it's, uh, you know, we need to save money. Uh, Doge has identified this as
00:20:31.060
waste, fraud, and abuse. Yes. I, we put out a CR that, uh, Schumer agreed to, but we're not going
00:20:38.140
to finance waste, fraud, and abuse. So I'm cutting that. And by the way, I'm going to start with,
00:20:42.040
uh, 150,000 probationary periods. Why are we falling into a trap of trying to say these people
00:20:47.880
are good? These people are not good. This guy would come to the office. This guy wouldn't come
00:20:51.540
to the office, sir. Yeah. Congress certainly has the power to set up officers of the United States
00:20:58.020
by statute. Congress certainly has the power of the purse, but the executive power under article two
00:21:04.360
of the constitution belongs to the president and the president alone. He's the chief executive
00:21:10.220
officer. He's the commander in chief. He can hire people. He can fire people. And if you have
00:21:16.280
statutes or regulations, uh, or court rulings that say that the president cannot fire executive branch
00:21:25.040
workers, or he has to rehire them against his will, those statutes, those regulations, those lower court
00:21:33.560
rulings are unconstitutional under article two of the constitution periods, full stop.
00:21:43.160
Um, correct me if I'm wrong. Look, this is your line of country. It's one of the reasons the war
00:21:48.140
and posse reveres the vice-rory and why president Trump and others in the administration listen to
00:21:54.100
your advice. Um, it seems to me given some of these kinds of arguments, both on the money and the
00:22:00.220
personnel. And this is the way we deconstruct the administrative state and seeing the ferocity
00:22:06.600
of these radical neo-Marxist judges across from DC to Maryland, to San Francisco, I mean, across the
00:22:13.160
country in these, in these radical jurisdictions that, um, and knowing the Supreme court as at least
00:22:20.920
I know him as a civilian, I don't see this getting rectified or sorted immediately. In other words,
00:22:27.480
I don't see this running up the chain of command. And next week we have some clarity. I think we're
00:22:32.680
in a fight now. Am I wrong in that? Or is, is, is, are you and the legal geniuses saying, no,
00:22:39.060
this is a strategy and we got a path to get up there and take essentially take these shackles off,
00:22:44.160
uh, the, the office of the president in doing essentially a restructuring of the American
00:22:50.000
government, sir? Uh, I would advise, and I have advised the president's legal team to continue to
00:22:57.240
charge forward because, uh, the presidency is at stake. Our country is at stake, right? If president
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Trump would have lost this election, everyone knows we would have lost our country. These Democrats
00:23:09.340
are not liberals who love America. Today's Democrats, too many of them are Marxist who are trying to
00:23:16.040
destroy America. And they have their judicial saboteurs on the bench. These new Biden and Obama
00:23:22.900
judges who are radical leftists, like judge Ali in DC, who is still a Canadian citizen, who's ordering
00:23:31.120
the president to send $2 billion in foreign aid to who knows where Hamas terrorist, maybe waste,
00:23:40.380
fraud and abuse, certainly. And you have a judge who thinks he can do this. And I would say this,
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these activist judges are destroying the legitimacy, uh, their own legitimacy by sabotaging the
00:23:53.120
presidency. They are playing a very destructive game, the most destructive game imaginable. And
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the chief justice needs to understand this. He, he needs to step up. He needs to stop this because
00:24:05.320
when the judiciary loses its legitimacy, the judiciary loses everything. Look, look what Andrew Jackson did.
00:24:16.060
You could not enforce your own orders. You need to rely on your legitimacy to get the executive branch
00:24:22.860
and Congress to go along with your orders. Are you going to send your law clerks and secretaries
00:24:28.660
to enforce your orders? Uh, they need to get the fact these, these activist judges reigned in. These
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are activist, radical judges. They are acting illegally. They are acting unconstitutionally.
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And there is going to be a severe political revolt against the judiciary. If they, if the chief
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justice does not get these activists judges in line and in line fast.
00:24:56.300
Mike Davis, uh, thank you very much. I think we're trying to get through your good offices. We're trying
00:25:00.960
to get John you on, uh, on today. Uh, I appreciate your help on that. Uh, also give a shout out. Was it
00:25:09.160
Gail Slater? Many of the Neo Brandeisians are now getting in place. And so the, really the antitrust
00:25:15.580
and the take on big tech that you, you have pioneered for many, many years, uh, have, um,
00:25:21.760
are coming in. You want to give a shout out? Yeah, absolutely. I know the Viceroy is highly
00:25:26.260
partisan, but one area where Steve Bannon and the Viceroy are not partisan, uh, is on antitrust. We are
00:25:33.620
working with people like Andrew Ferguson, the FTC chair, Lena Kahn, a Democrat appointee at the FTC.
00:25:41.420
Gail Slater is our friend, uh, Bannon's neighbor, who is the new antitrust chief at the justice
00:25:48.700
department. She's one of my best friends in Washington. Uh, Mark Meador is going through
00:25:53.060
the process. Now, president Trump has assembled the antitrust dream team. They, there is a bipartisan
00:26:00.640
antitrust renaissance to hold these big tech monopolist and other, uh, monopolist accountable.
00:26:08.960
And so we have free and fair markets and we, that is good for, that is good for small businesses.
00:26:15.300
That is good for consumers. So congrats to our good friend, Gail Slater. Uh, you, she just started.
00:26:21.780
Yeah. Mike, uh, article three, where do people go?
00:26:25.200
Article three project.org article number three project.org. You can donate there. You can follow
00:26:32.380
us on social media. The most important thing the posse does is take action, action, action, action.
00:26:38.340
Thank you, Steve. Thank you. Thank you, brother. Speaking of action, we're going to go to the
00:26:42.660
white house to the sticks. Caroline Lovett live with us. Um, who said that only because of president
00:26:49.100
Trump, are we here on the verge of brokering a peace deal? He did not know. Steve Whitcoff spoke
00:27:04.200
to him yesterday in Moscow, as you know, has the president spoken with the new incoming Canadian
00:27:09.000
prime minister at all this week? I know earlier this week you said they hadn't yet spoken, but given
00:27:12.680
everything that's going on, to my knowledge, they have not spoken. When they do, we can provide a
00:27:18.360
readout of that call. Yeah, I believe it's still ongoing or it wrapped, uh, when I came out here,
00:27:26.660
but, um, you know, the governor was here to talk about the pipeline that president Trump is very
00:27:30.840
determined to get passed, um, in the new England and New York area. Um, and so, you know, that's as
00:27:38.540
far as I know about the conversation, but I can get an update on it. Caroline, district board rulings
00:27:42.900
about all the fire and probationary workers use the same language here just now that was in the
00:27:46.680
statement about fighting back against that ruling. Do you mean appealing or something else? And does
00:27:50.480
the administration plan to comply with those orders in the meantime? Uh, fighting back by
00:27:55.620
appealing, fighting back by using the full weight of the White House counsel's office and our lawyers
00:28:01.000
at the federal government who believe that this injunction is entirely unconstitutional. And it is
00:28:06.060
for anybody who has a basic understanding of the law. You cannot have a low level district court judge
00:28:11.500
filing an injunction to usurp the executive authority of the president of the United States.
00:28:16.480
That is completely absurd. And as the executive of the executive branch, the president has the ability
00:28:22.320
to fire or hire. And you have these lower level judges who are trying to, uh, block this president's
00:28:29.200
agenda. It's very clear. And as I just cited, I was appalled by the statistic when I saw it this
00:28:34.240
morning in three or in one month in February, there have been 15 injunctions of this administration
00:28:41.560
in our agenda in three years under the Biden administration, there were 14 injunctions. So,
00:28:47.080
uh, it's very clear that there are judicial activists throughout our judicial branch who
00:28:51.720
are trying to block this president's executive authority. We are going to fight back. And as anyone
00:28:56.680
who saw president Trump, uh, and his legal team fighting back, they know how to do it. He was indicted
00:29:01.600
nearly 200 times and he's in the Oval Office now because all of the indictments, all of these
00:29:06.800
injunctions have always been unconstitutional and unfair. They are led by partisan activists,
00:29:11.100
um, who are trying to usurp the will of this president and we're not going to stand for it.
00:29:24.100
Okay. Um, gosh, I hate to say, I hate to say that we're totally in sync with the White House and what
00:29:31.160
the news of the day are, but you heard Caroline Levitt. Look, this is big. Chuck Schumer is going
00:29:35.520
to essentially, uh, a seed to and sign a surrender document today in the early afternoon. The
00:29:41.520
Democratic party is completely and totally in meltdown over this. Um, the, uh, where they are
00:29:48.740
getting some traction. And I just want people now to, to cause my current thinking is the following
00:29:54.320
is that, um, this is going to grind through. This is going to take a while. You're going to see this
00:30:01.460
fight go on and knowing the, cause as Mike Davis tells you, it's also, it's the law, but it's also
00:30:07.880
politics. When it is, the higher up you go, the more the intense politics and now the radical nature
00:30:13.780
of the judiciary. This is why the confirmation of these judges is so important. This is why I remember
00:30:18.220
on the night of the election when we were sitting there starting to celebrate, we did say, Hey folks,
00:30:22.820
we got to go to work the next day after November 5th. Why Elizabeth Warren put the clarion call out
00:30:29.840
to Schumer and said, you hadn't done a good enough job. We've just lost the Senate. We have what?
00:30:34.480
Eight weeks, uh, before, uh, Trump's people are here or actually less than that to the new Senate,
00:30:40.300
I think January 3rd. And she said, we have to go approve all those judges and look how many judges
00:30:45.380
they jammed through at the last second. And what do you get? You get the check-ins, you get the
00:30:50.160
barrel barrel barrel house. You get the judge out in San Francisco, 80 years old. I think he's been
00:30:56.360
there 50 years. Didn't he say the other day, 40 some years. Um, this fight in the courts is,
00:31:04.620
and you can see the radical nature. You can also say, see the vitriol against president Trump and his
00:31:11.340
administration. I mean, they're coming in. They're just, they couldn't be more vicious.
00:31:15.140
So that's what we had, Mike. We're going to have John. You, the great John. You is going to join us
00:31:20.640
hopefully about 11 o'clock. John. You is one of the great legal thinkers, uh, on our side of the
00:31:27.580
football. He's written some incredible pieces at Fox and he also wrote a piece at Civitas that laid
00:31:33.380
this entire construct out. Uh, we want to get him because ideas have consequence. Also, Julie Kelly's
00:31:39.280
going to join us tonight on what's happening today in the courts. I will tell you on the two basic
00:31:45.000
things, and this is both Doge's, uh, waste, fraud, and abuse, but it's also going to get into this
00:31:50.820
whole programmatic cuts. It's going to get into impoundment. It's going to get into rescissions.
00:31:55.320
You're going to get into when we got to cut to the, we have to cut to the bone here because we can't
00:32:00.060
afford, uh, paying for this anymore. Not just intruding in your personal life and your,
00:32:05.680
in your professional life, but you just can't afford it. It's not sustainable.
00:32:09.280
They're going to use the courts to try to fight this. The legislative side essentially
00:32:13.240
surrenders today. The activist side, and they're going into red districts, you know,
00:32:17.580
Bernie Sanders and, and, uh, and, uh, Waltz and Waltz is predicating his, his presidential
00:32:22.980
campaign in 28 on this. Bernie, I think is feeling the juice. He's drawn some big crowds. You just have
00:32:28.560
to face facts. Uh, I don't think these Republicans should be canceling these town halls. I think they
00:32:36.600
ought to have security. And if people get out of control and start yelling, screaming, these,
00:32:40.060
these paid democratic activists, or even have democratic people, you got to tell people,
00:32:44.240
Hey, calm down. I'll answer your question. But it seems to me that MAGA has got to show up to
00:32:48.660
these town halls. You shouldn't back off them and make, make the case, make president Trump's case.
00:32:53.200
The case is very straightforward. The case for waste, fraud, and abuse is very straightforward.
00:32:56.720
And it has to happen. Caroline Levitt was there. You saw Scott Besant, the secretary of treasury at
00:33:03.580
the white house that he was in the background. I would hope he would come to the sticks.
00:33:07.940
We can't get enough of Scott Besant. Do we have, uh, Matt, Matt Boyle did an incredible job
00:33:14.020
from the salmon chase, uh, room, uh, last night where they did the interview. Uh, we've got the first
00:33:21.000
clip up. Let's go ahead and play that. Uh, I'll jump in. Is it, uh, is it, is it ready to go?
00:33:29.260
You gave a massive address recently in the New York economic club, uh, in it, you laid out your
00:33:34.200
plan to what you call reprivatize the American economy. We saw there in the previous administration,
00:33:39.900
pretty big reliance for economic growth on government spending. You think that's not the
00:33:45.120
answer. Uh, walk us through how do we reprivatize the economy? What does that mean? Uh, explain that for us.
00:33:50.520
Sure. So one, one of the reasons I came out from behind my desk and asked president Trump,
00:33:55.960
if I could join the campaign, then when he asked me to be in the cabinet was because I was so alarmed
00:34:02.280
by this high level of government spending. We've never seen anything like this highest level ever
00:34:07.560
when we weren't in a war or in a recession. So the Biden administration relied on this blowout spending
00:34:14.460
back to the mainstream media. The, no one criticized it when they were doing it because
00:34:19.880
it was for the great and the good. It was for green programs. It was for this, it was for overseas
00:34:25.540
engagement. Uh, now what we're trying to do is do a course correction where we bring down the government,
00:34:34.420
we deleverage the government and relever the private sector. And we're going to do that by cutting
00:34:40.940
spending, the lowering interest. We'll get a natural lowering of interest rates. And then on the other
00:34:48.540
side, as we relever the private sector, we're deregulate, we plan to deregulate the banking system,
00:34:55.000
which was one of the things I talked about at the economic club of New York last week. So as we allow
00:35:02.020
the banking, as we unshackle the regulated banking system, they can lay, they can lend to private,
00:35:09.380
the private sector and especially, uh, Main Street, which has been overlooked. So small regional banks,
00:35:16.520
small banks, community banks. And so as the government comes down, the private sector will go
00:35:22.680
up. Government will shed excess labor and there's plenty of it. And then the private sector will pick it up.
00:35:29.680
If you listen to the establishment media talk about this, they will say, um, that the, the shifts that
00:35:36.340
we're talking about here from government dependency to a private sector, uh, for economic growth, uh,
00:35:42.440
may cause a recession, um, that you see that term out there all the time. Um, I would imagine you
00:35:48.400
disagree. Can you explain that for us? Well, I, I disagree. This does not have to cause a recession
00:35:54.060
because look, and again, back to your point on fact-based analysis that for my 35 years from my investment
00:36:03.260
career, I was able to kind of the, uh, not listen to the noise, adhere to the facts. And I can tell you,
00:36:10.540
the facts are, uh, I, I've met with several large bank executives and payment processors this week. Uh, the American
00:36:18.940
consumers in great shape their, their spending, uh, met with one of the five largest bank CEOs today.
00:36:26.540
He said that small, medium manufacturing in the Midwest, they've seen a tick up in loan volume.
00:36:33.100
So, you know, I, I, I disagree with this and where, where were all these people when the Biden
00:36:39.820
administration was blowing out the deficit? Like we could have come in, it would have been easy to
00:36:44.940
come in, keep up these horrendous spending levels. And maybe we could have kept it going for one year,
00:36:51.020
two years, maybe even four years and left the next president and his administration,
00:36:57.180
the American people with this problem, or it could just blow up at any time. So we are laser focused
00:37:04.060
on getting this deficit under control and then growing the economy.
00:37:08.620
I'm so proud of these guys. We're going to hit with some Scott Besson there. And then John, you,
00:37:15.500
when he comes on the structural massive problems with the government right there. And I think we
00:37:21.580
got a CNBC clip. I may call for here in a moment of, of, uh, Scott Besson. He said, Hey, we could have
00:37:27.660
continued on, you know, this massive deficit spending. Now what it would have done, it would have embedded
00:37:32.300
inflation more into the system. But at some point in time, he just had, cause we've kicked the
00:37:38.460
can down the road. We haven't made the tough decisions. You just keep going and going and
00:37:43.340
going. They could have, Trump could have done it. Besson could have done it. They said they're not
00:37:47.740
going to do it. President Trump's transformational. This is why he's talking about hemispheric defense.
00:37:57.100
This is why, uh, this is why he's engaged in stopping the kinetic part of the third world war
00:38:03.420
in the Eurasian landmass. And just, they put it a true social, a moment ago,
00:38:07.580
the cities, they're basically having conversations with Putin and making progress.
00:38:12.940
John Hughes is going to be in a moment saying, Hey, this whole thing had gotten so far out of control
00:38:17.980
with the justice department being so radicalized from the time of Richard Nixon. And what president
00:38:24.220
Trump's trying to do is end, you know, and, and the, the sins of the cure quote unquote,
00:38:32.460
for Watergate. He's trying to stop the addiction to, to massive federal spending.
00:38:39.660
He's trying to stop the addiction to, uh, to the war machine. He's trying to detox,
00:38:47.340
detox. And somebody said, well, Scott shouldn't have used that word. I absolutely should have used
00:38:51.340
that word because that's the, if you, if you tell the truth to the American people
00:38:55.260
and you're authentic and they see that you're going to fight for their interests and explain
00:38:59.900
to them, Hey folks, this is what we're trying to accomplish. The American people will have your
00:39:04.700
back. That's why they had Trump's back in the election. Remember all the guys running around
00:39:09.180
now and they're going to, Hey, you know, you got Mike Allen. They're, they're all trying to come to
00:39:12.620
talk to, uh, uh, right-wing media because they understand we've outworked them out,
00:39:17.820
hustled them and built these kinds of networks out of nothing at a zero, no capital, just basically
00:39:24.060
content. President Trump is not here to do normal things. That's why every day it's so amazing what
00:39:33.340
he's doing are so many different levels. Last night, they, a couple of things they put out yesterday
00:39:38.380
it, Pete Hexas has put together a couple of military options for the Panama Canal, as you should.
00:39:44.860
President Trump already got Larry Fink and, uh, and, and, and, and black black rock. Well,
00:39:50.780
I'm not huge fans of, but they're kind of guys go right at $25 billion check. And they wrote a
00:39:54.300
$25 billion check to buy out Hutcherson, Wampoa, the, the, the Chinese company, the Hong Kong company
00:40:00.380
that manages the docks and the stevedores, everything down the Panama Canal, the first step to taking it
00:40:06.140
back. Now it's in American hands, the operational part of it. Not all of the, not all of the, um,
00:40:11.740
the, um, the, um, the parts of the canal are still under some parts of the Panamanian government,
00:40:18.140
but that's all going to be quickly ceded to the United States. And president Trump's looking at
00:40:22.540
a couple of three military options. He's still getting military options against the cartels.
00:40:27.820
We were going to have Tom dance on this morning about Greenland. There's a technical issue. We'll
00:40:32.060
get Tom tonight or tomorrow, but, um, you know, he's thinking through his whole thing at Greenland.
00:40:37.220
Everything he's doing is massive. They, they just leaked last night. They're coming forward
00:40:42.020
with the, the aliens act of, uh, 1798 to expedite getting rid of illegal aliens in the country.
00:40:52.500
The aliens act of 1798. They're going to, they're going to, you know, they're going to dust that
00:40:59.440
off and say, bang, we're doing this today. President Trump's going to be sending more executive
00:41:04.340
orders. Everything is signaled with this. They're not, they're not playing on the margins. This is
00:41:10.320
deep in the fights deep. This is why the, about the courts, we're going to have you on
00:41:13.960
and you see right there with Scott Besson. Do we have the CNBC clip? Let me play the scene. How
00:41:20.300
long is it? Just a couple of minutes. Yeah. Let's go and play the CNBC clip. This is consistent.
00:41:27.220
This is what I think is great coming out of treasury and Scott, uh, Besson as a capital markets
00:41:31.560
guy. He's laying out, we're cutting spending. We're going to deconstruct this government.
00:41:36.200
We're going to get the size down. We're also going to get the spending down the Pentagon and other
00:41:39.460
places. They could have taken the easy road, right? They're taking the narrow path. Why are they
00:41:46.420
taking the narrow path? The country has to have it or we're finished. I kept saying that one in the
00:41:50.300
middle about the finances. If you just keep going, that's existential. You're, you're, you're done.
00:41:54.260
You're toast. They're not going to do it. They're attacking this full on. Let's go and play it.
00:42:00.540
You know, when you say that we're in a, when we're in a period of detox,
00:42:05.160
you use that word on CNBC last week, is that a euphemism for recession?
00:42:10.080
Uh, not, not at all. It doesn't have to be because it'll depend on how quickly the baton
00:42:16.420
gets handed off. You know, our, our goal is to have a smooth transition, but I tell you,
00:42:22.300
Sarah, the easy thing, the easy thing for us to have done would have been to come in and just keep
00:42:27.560
this massive spending level going and it's unsustainable. But could we have kept it going
00:42:33.820
for a year, two years, maybe even four? Maybe, but you're risking a financial calamity. So,
00:42:40.180
you know, we are trying to get this tax bill done. We are the controlling expenses. And when we get the
00:42:47.460
tax bill done, so if you can change the trajectory, up revenues, up economic growth, hold expenses flat,
00:42:55.300
or do the unthinkable and cut expenses, then that's, that's a pretty good trajectory on growth.
00:43:02.320
And, you know, if we go back to the model in the nineties, that's exactly what happened. You know,
00:43:06.720
we'd see interest rates come down. We'd see the private sector take up the slack from the government
00:43:11.720
because right now we have excess employment in the government and that the, those people
00:43:18.640
can be moved to the private sector. Move them to the private sector, downsizing,
00:43:26.660
cutting expenses. And the courts are coming back saying, you can't do that.
00:43:30.320
You can't do that. You can't, you can't cut the federal government. You can't cut the bureaucracy.
00:43:34.060
You can't do it. They're fighting. And this is going to go all the way up. I think it's going to
00:43:39.580
take a while. I don't see this getting expedited really overall, because they're going to keep
00:43:43.980
coming. I think you have to bundle it into one thing. We'll ask John you this. You have to bundle
00:43:48.520
it and have an overall decision here because, you know, you're going to go one of these radical
00:43:54.060
sectors like DC to lose at the appellate court and you have to go to the Supreme court or whatever
00:43:59.100
side loses is going to continue on. So this is going to be as, as treasury and OMB are trying to do
00:44:06.100
their jobs. You've got, you know, these unions and all these radicals and you see them cheered on
00:44:12.720
by MSNBC. What, what did Schumer say? Don't miss the signal for the noise. The final decision
00:44:19.240
they made in keeping the government open, their fear is that if they shut the government
00:44:26.960
down, president Trump could do something with the courts and slow it down. And they admitted
00:44:30.500
that's the only place they're getting victories right now. This is going to get tougher and
00:44:37.140
tougher. That tell you also behind the scenes, the polling, it's getting a little dicey. One,
00:44:44.920
I think it's just not being messaged a hundred percent appropriately. That's why I'm glad
00:44:47.840
Besant's more engaged. I hope Russ Vogt gets engaged. I think I'm glad Caroline came out
00:44:53.800
today. I think the white house staff is doing a, um, is doing a fantastic job here. Uh, we
00:44:59.460
want to see more. I think you have more financial. I would also make a recommendation, you know,
00:45:04.920
maybe Howard ought to spend a little more time at commerce, maybe a little less time in
00:45:08.740
the TV studio. A little bit of that goes a long way. If you know what I mean, we got
00:45:14.500
to kind of get on point here. Speaking of getting on point goals through 3000, we've told you
00:45:20.960
this for years. It's, it's understand pattern recognition. We're here to give you access to
00:45:27.380
information so that you understand it. You have a mental map, right? Somebody just not telling
00:45:32.120
like, Oh, it's goals to the team. Understand why understand why you do that. You'll change
00:45:37.440
your life. You will. It's one of the reasons we're so proud and the team so committed to
00:45:41.600
the show. We see how it's energized people. Use your agency, take your phone out, text
00:45:46.820
Bannon at nine, eight, nine, eight, nine, eight. Get the ultimate guide for purchasing gold
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in the era of Trump. Even if you don't have the reason you don't want to purchase gold,
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learn about it, learn about it and talk to Philip Patrick and the team. Short break back
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What if he had the brightest mind in the war room delivering critical financial research
00:46:11.160
every month? Steve Bannon here. War room listeners know Jim Rickards. I love this guy. He's our
00:46:17.320
wise man, a former CIA Pentagon and White House advisor with an unmatched grasp of geopolitics
00:46:23.140
and capital markets. Jim predicted Trump's electoral college victory exactly 312 to 226 down to the
00:46:31.520
actual number itself. Now he's issuing a dire warning about April 11th, a moment that could
00:46:38.060
define Trump's presidency in your financial future. His latest book, Money GPT, exposes how AI is setting
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the stage for financial chaos. Bank runs at lightning speeds, algorithm driven crashes, and even threats
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of national security. Right now, war room members get a free copy of Money GPT when they sign up for
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strategic intelligence. This is Jim's flagship financial newsletter, strategic intelligence.
00:47:04.600
I read it. You should read it. Time is running out. Go to Rickardswarroom.com. That's all one word,
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Rickardswarroom. Rickards with an S. Go now and claim your free book. That's Rickardswarroom.com.
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Do it today. Here's your host, Stephen K. Bannon.
00:47:22.200
Two things. I want to go to Birchgold.com, end of the dollar empire. Birchgold.com slash Bannon,
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end of the dollar empire, modern monetary theory, the sixth free installment. Also,
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Rickardswarroom.com. You get access to strategic intelligence. And he offers up as a bonus,
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a free book. Was it money in chat GBT about currency, capital markets, and AI. There's a story
00:47:56.040
on business. I said this day was coming. There's a new, one of the hottest companies in programming
00:48:03.540
of coding essentially said that the CEO, I'll have this this afternoon to talk about. CEO made a
00:48:11.740
statement. He says, he thinks all of his coding, his company, all of it will be done by artificial
00:48:17.240
intelligence. They'll have some managers managing, all be done by artificial intelligence within this
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year, within this year. So you go to Rickardswarroom.com slash Bannon. You get, you go there and you get,
00:48:32.440
not only get access to strategic intelligence, you also get the new book about money and artificial
00:48:39.060
intelligence. Rickards, the Chinese curse to live in interesting times. Sir, we're doing it. Give
00:48:47.640
me, I want to know, first, I want to pull back the camera and talk to you about the quote unquote
00:48:51.880
tariffs, trade war, how that's affecting the market, impacting the market. And obviously,
00:48:58.040
as you're called shot to the rise of golds over 3000 a day, Jim Rickards, the floor is yours, sir.
00:49:03.300
Sure. Well, I love the fact that every reporter in Washington or lobbyist or whatever is suddenly
00:49:09.080
an expert on tariffs. We haven't heard much about them for a long time, but now that that's all you
00:49:13.540
hear. The fact is, most mainstream economists don't understand tariffs. There are a few who do,
00:49:20.780
Michael Pettis and a few others, and I've spent a lot of time on the topic. As we've said before,
00:49:26.680
tariffs were how the United States grew from 1790, Alexander Hamilton until 1962, when Kennedy signed
00:49:34.000
the Trade Act of 1962. The U.S. always had tariffs. Again, John Quincy Adams, Abraham Lincoln,
00:49:43.520
William McKinley, Coolidge, Eisenhower, they all supported tariffs. The income tax didn't even come
00:49:49.100
in until 1913. How did we finance the Civil War, the Spanish-American War and all the growth,
00:49:54.360
etc.? So terrorists make sense. They basically say to the world, hey, you can sell whatever you want
00:50:00.700
to Americans, no problem, but you have to build it here. You have to invest here. You have to hire
00:50:04.860
Americans. It creates high-paying jobs. That, in turn, drives consumption of the good sort, and
00:50:10.320
not with debt, but with the fact that people can afford things, and the economy grows. So plus you get
00:50:16.060
an awful lot of revenue from it, and all these budget projections you hear about are not really taking
00:50:20.500
into account the at least tens, perhaps hundreds of billions of dollars that we'll actually get from
00:50:26.100
the tariffs. So Trump has that right. It's not some radical new idea. It was an idea that was around
00:50:32.160
for, you know, 150 years, but it was just sort of abandoned during the age of globalization slightly
00:50:38.800
before. So, but the biggest canards, Steve, or the biggest misunderstanding, the Democrats started
00:50:46.100
this in the 2024 campaign, but it kind of caught on. Unfortunately, they said tariffs are a sales
00:50:51.340
tax on the American people. You buy goods, and if you put a 10 or 20 percent tariff on it, that's like
00:50:56.800
a 20 percent sales tax. Well, everyone hates sales tax. I live in New Hampshire. We don't have any,
00:51:01.540
so, but most places do. That's not true. And here's what. There are three parties, at least three,
00:51:08.700
maybe more, but there are at least three parties to a tariff-related transaction. There's the producer,
00:51:13.500
the exporter. It could be in China, Vietnam, or Malaysia. There's the importer in the United States,
00:51:19.180
which is a distributor or a wholesaler of some sort. And then there's the consumer. You might
00:51:24.020
have more metal men, but those three parties. So this idea that this gets laid off on the consumer
00:51:29.240
is absolutely not true. If you thought, I mean, if Walmart and Best Buy and Kohl's and everyone else
00:51:36.160
thought that they could raise prices to consumers, they would do it anyway. You don't need a tariff to
00:51:40.780
raise prices. They would just raise prices. Why don't they? Because they can't, because the
00:51:44.860
consumer can't pay more because the consumer's tapped out. Credit lines are used up, et cetera.
00:51:49.380
There's a lot of what's called inelasticity, sorry, elasticity at that level. People will
00:51:55.040
substitute other goods, get hamburger instead of steak or whatever. The only exception is gasoline
00:51:59.840
because you absolutely need that. So who actually pays the tariff? Well, the importer writes the check.
00:52:05.720
The importer who takes it off the container ship at the port of LA writes the check to the treasury
00:52:10.860
for the tariff. But who bears the economic cost? A lot of it gets pushed back to the producer.
00:52:16.080
The importer calls China, Vietnam, or Malaysia is the case may be and say, look, you've got to lower
00:52:21.060
your prices because lower prices with the tariff comes out about where we were. But this is coming
00:52:26.720
out of your profits and your margins. Or the importer can bear part of it. Again, same result,
00:52:32.140
lower revenues, lower margins. Or they can split it. And that's just an economic decision. But the
00:52:38.080
point is, either the producer or the importer or both bear the tariff. The consumer does not because
00:52:44.500
the consumers can't pay anymore anyway. So that whole sales tax idea is just a complete myth.
00:52:49.800
It's not true. And that's why it's not inflationary. Trump put a lot of tariffs on it in 2018. We didn't
00:52:55.460
have inflation, no significant amount of inflation. Then go back to-
00:52:59.720
Hang on. Hang on. Hold on. Full stop. Hit rewind on that. We got to hammer this point every day.
00:53:07.120
President Trump put the highest tariffs we ever had on the Chinese Communist Party in 18. And in 18 and
00:53:12.020
19, absolutely no price inflation at all on any of the Chinese goods. Am I correct in that, Jim
00:53:17.840
Rickards? Am I correct in that, Jim Rickards? It shows it's a lie, this canard they do every day,
00:53:23.920
and nobody refutes it. You got Spencer Morrison, you got Peter Navarro, you got Jim Rickards,
00:53:29.720
you got three or four guys, and we ought to be out every day. I've told Treasury and White House
00:53:33.460
this, we have to have the first team out there tearing apart the lies that they're putting out
00:53:39.340
about tariffs right now, sir. There is no economic evidence that tariffs cause inflation. In fact,
00:53:45.020
the example we just gave, 2018, Trump piled on tariffs and there was no inflation. The inflation
00:53:51.340
took off in 2022 under Biden, hit 9.1% on an annualized basis. Spending. The Keynesian
00:53:59.160
spending. The Keynesian spending. The Keynesian spending. Jim, hang on for a second. Rickards
00:54:05.940
is going to be with me for most of the second hour. Go to Rickardswarroom.com, you get access
00:54:11.840
to strategic intelligence. Also, you get a free book on capital markets, currency, and artificial
00:54:17.740
intelligence. Next segment, we're going to end here with the right stuff. Rickards got
00:54:25.300
it. President Trump's got it. Our next guest at the top of the hour, John Yu, one of the
00:54:30.200
great brains on the legal side in the conservative movement is going to join us. We're going to
00:54:36.460
talk about, you heard Matter last night, the court in San Francisco, in Maryland, Mike Davis
00:54:42.420
led it, these fights we have against these radical neo-Marxist judges. John Yu's going
00:54:47.900
to say, we're here to end the sins of the post-Watergate era, of what was done at the Justice
00:54:55.600
Department and the federal bench. Short commercial break. John Yu joins us next in the war room.
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