Bannon's War Room - July 30, 2025


Episode 4669： GDP Up 3% And Private Sector Growth


Episode Stats

Length

57 minutes

Words per Minute

161.85814

Word Count

9,367

Sentence Count

791

Misogynist Sentences

2

Hate Speech Sentences

15


Summary

The economy grew at a 3% rate in the first quarter of 2019, beating expectations, and the unemployment rate is at an all-time low of 4.1%, but it's not because the economy is slowing down. In fact, it's because it's growing at a rate of 3% and inflation is at 2%, which is the best of both worlds.


Transcript

00:00:00.000 Remember, President Trump's entire program is on turning around the doldrums of the Biden economy, doing a supply side tax cut and getting to two point eight, three, three and a half percent growth.
00:00:11.500 The American economy to be robust, to be replacing jobs, to keep unemployment down, to keep the whole apparatus of the whole project moving forward.
00:00:20.200 You need minimum of like three percent growth. You have to have three percent growth or higher.
00:00:24.280 And particularly in Scott Besson's plan at Treasury, you need and I think Chip Chip agrees is three and a half percent.
00:00:31.700 But even at three percent, you start to get ahead of where of where you're growing the economy and tax revenues and tariff revenues higher than you're adding deficits from spending.
00:00:43.080 Now, that is a that's what a supply side tax cuts about. People say, well, that's very risky.
00:00:47.800 Well, it's not it's not it's not risky in the fact of you understand the elements that you're putting in there.
00:00:54.280 Up three percent of three percent better than expected.
00:00:58.460 That would be the highest level since the third quarter of twenty four when it was up three point one percent on the consumption side of one point four.
00:01:07.880 Very close to estimates up one point four would be the best since the last quarter of twenty four.
00:01:13.460 Well, we've got a stronger than expected GDP number three percent for the second quarter initial read.
00:01:19.740 That's up from a half percent in the first quarter.
00:01:23.920 Two point six percent was what was forecast.
00:01:26.460 Now, again, GDP, this is the first read of the second quarter coming in at three percent.
00:01:32.060 That is better than expected. Two point four percent.
00:01:34.960 I want to bring it out in Johnson. Markets are certainly watching this right.
00:01:37.700 Yeah. Goldilocks, because I would add to that, Cheryl, that the GDP price index was only two percent and the expectation was two point two.
00:01:46.040 In other words, we have an economy growing at what do you say?
00:01:48.960 Three percent. We have inflation at two percent.
00:01:52.060 That's the best of both worlds.
00:01:53.640 So I'm very positive on that report, at least in the moment.
00:01:56.680 The left and people that don't like the president and don't want things to work.
00:02:02.420 And, you know, like Senator Elizabeth Warren will come on and say inflation's out of control and the economy is getting killed by what's happening by these tariffs.
00:02:10.860 This three percent with the market at new highs and really we haven't seen inflation, you know, go up back to three percent.
00:02:18.500 Maybe it will this week. Maybe we'll see it.
00:02:20.540 But none of these things, none of these horrible things have happened, but they still talk like it's happening.
00:02:25.340 It's amazing. Well, the important there's an important lesson there.
00:02:29.200 Don't pick a congressman to be your money manager at.
00:02:31.940 That's what I would say.
00:02:33.480 But in the end, Congress has their own reasons to point out certain things.
00:02:39.180 And the Democrats, of course, as you pointed out, really don't want to see the current administration have some success.
00:02:44.760 But there's no doubt that this is some success.
00:02:47.560 We're seeing more horsepower.
00:02:49.180 We're seeing better equities.
00:02:50.600 Inflation. Inflation really hasn't changed much in the last year or so.
00:02:55.580 Yeah. Beat on the ADP number here.
00:02:57.960 One hundred and four thousand versus sixty four thousand estimate and reversing the negative number from last month.
00:03:04.920 I'll talk about their vision in a second.
00:03:06.240 But the good sector doing what it's been doing about plus thirty one thousand service sector.
00:03:10.980 Seventy four thousand. And there's the non farm payroll estimate.
00:03:14.800 Remember, ADP is only estimating private payrolls and not really even trying to mimic the BLS.
00:03:20.180 Just doing its own thing and saying, here's what our data show about national job growth.
00:03:25.180 June was revised to minus twenty three from the original minus thirty three.
00:03:30.000 Small business back in the game here.
00:03:32.080 Plus twelve thousand had been down the prior two month medium and large business.
00:03:35.860 Both about both both at forty six thousand by industry.
00:03:39.840 Well, there's leisure and hospitality again, plus forty six thousand financial activities, plus twenty eight trade, transportation and utilities up eighteen thousand construction.
00:03:48.760 Part of that goods producing number that we told you.
00:03:51.620 And the weird number here, the education health service is down by thirty eight thousand.
00:03:55.740 That has been a perennial source of job growth.
00:03:58.760 Looking at wage gains, job stayers remaining unchanged, plus four point four percent.
00:04:03.660 But if you change jobs, you get a seven percent raise raise.
00:04:07.200 That's up two tenths from the prior month.
00:04:09.600 ADP chief economist Neela Richardson writing in the report are hiring and pay data are broadly indicative of a healthy economy.
00:04:16.560 Employers have grown more optimistic that consumers will remain resilient.
00:04:22.360 This is the primal scream of a dying regime.
00:04:27.280 Pray for our enemies because we're going medieval on this people.
00:04:31.260 I've got a free shot of all these networks lying about the people.
00:04:36.880 The people have had a belly full of it.
00:04:38.860 I know you don't like hearing that.
00:04:40.300 I know you've tried to do everything in the world to stop that, but you're not going to stop it.
00:04:42.920 It's going to happen.
00:04:44.180 And where do people like that go to share the big line?
00:04:47.580 Mega media.
00:04:49.000 I wish in my soul, I wish that any of these people had a conscience.
00:04:54.340 Ask yourself, what is my task and what is my purpose?
00:04:57.500 If that answer is to save my country, this country will be saved.
00:05:04.520 War Room.
00:05:05.320 Here's your host, Stephen K.
00:05:07.380 Bannon.
00:05:07.740 It's Wednesday, 30 July, year of our Lord, 2025.
00:05:14.200 We're going to go momentarily, I think at like around 1030.
00:05:16.980 The great Matt Boyle at Breitbart will be interviewing Scott Besson, Secretary of the Treasury, former contributor to the War Room around 1030 on this breaking day of the Federal Reserve.
00:05:28.940 It's going to come out.
00:05:29.500 And, of course, we've got numbers, GDP numbers and ADP, the early look at employment numbers.
00:05:34.640 I'm seeing some pattern recognition.
00:05:38.820 Remember the number 3%?
00:05:41.980 And, look, it's too early for a lot of the BBB, the big, beautiful bill, to kick in.
00:05:51.080 But from tariffs, animal spirits, you're starting to see it.
00:05:57.100 EJ and Tony joins us this morning.
00:05:59.540 EJ, walk us through both the GDP and the labor number, sir.
00:06:04.640 Well, Steve, thanks so much for having me.
00:06:07.500 This GDP report, I mean, really is an absolute blockbuster.
00:06:11.060 Completely defies expectations.
00:06:14.060 It's not only a good headline number, it has good internals as well.
00:06:18.300 And we can talk about some of those.
00:06:19.900 So we got a three-handle today.
00:06:21.820 We were up 3.0%.
00:06:23.500 A lot of people thought we couldn't even get that by the fourth quarter of this year.
00:06:28.360 And we already have it right now.
00:06:30.920 Much of what happened in this report was a reversal of the first quarter.
00:06:34.820 In the first quarter, there was front-running of tariffs.
00:06:36.980 There were import surges.
00:06:38.740 And, again, all of that has completely reversed.
00:06:41.980 And so just as imports subtracted from GDP in the first quarter,
00:06:46.440 the lack of imports added in the second quarter to that GDP number.
00:06:51.720 And so if we look at the overall trend, Steve, what we find, again, is a lot of positive news.
00:06:57.100 We find that consumer spending is up.
00:06:59.920 We find that government spending, as measured by government purchases,
00:07:03.860 is actually flat for the year.
00:07:05.720 In fact, it's off like a tiny fraction of a percent, like a tenth of a percent,
00:07:09.900 maybe a few hundredths of a percent.
00:07:11.800 But the fact is, government is not growing here.
00:07:15.000 The private sector is delivering literally all of the economic growth in 2025.
00:07:21.040 There were people who told us that if government doesn't keep spending,
00:07:23.840 we're going to have a recession.
00:07:24.900 The economy is going to collapse.
00:07:26.280 They were absolutely wrong.
00:07:27.820 Instead, what we're seeing is personal income growing.
00:07:30.320 Not only is personal income growing, Steve, but even after adjusting for inflation.
00:07:34.740 In other words, real personal income is still up.
00:07:37.980 It was up 3% in the second quarter.
00:07:40.280 That was enough to lift real disposable incomes
00:07:43.740 and even push the savings rate to its highest level in a year.
00:07:47.740 So although a lot of people are still hurting,
00:07:50.260 I don't mean to say that everything is all sunshine and rainbows.
00:07:52.820 It's not.
00:07:53.440 We're in a pretty deep hole after four years of Biden.
00:07:56.260 But that being said, things are really moving in the right direction here, Steve.
00:08:00.600 It really is remarkable that after just six months,
00:08:03.660 we've had this much of an economic turnaround.
00:08:06.320 And so incomes are going up.
00:08:08.020 Again, even after adjusting for inflation, more people are able to save.
00:08:12.500 That's really, really good news.
00:08:13.980 It's not to say everybody's doing okay.
00:08:15.860 They're not.
00:08:16.700 But things are finally moving in the right direction.
00:08:19.880 And that is absolutely phenomenal news.
00:08:22.280 And we haven't even seen the effects of the big, beautiful bill kick in,
00:08:27.040 as you were just talking about.
00:08:28.300 We haven't even yet seen the increase in investment that that's going to deliver.
00:08:33.120 The real driver of long-term economic growth, Steve,
00:08:36.580 is what we call fixed private investment.
00:08:39.760 So that would be investment that doesn't include things like inventory, for example.
00:08:44.620 And within fixed investment, we can even exclude residential investment.
00:08:48.960 So not talk about building homes.
00:08:50.700 We just want to talk about non-residential.
00:08:52.540 So building factories, building equipment, all of that, that did not go up very much in the second quarter.
00:08:59.300 It was only up a fraction of a percent.
00:09:01.980 But we can expect that to go up big time in the third quarter,
00:09:05.460 because now we have full expensing of things like plant and equipment.
00:09:08.920 That's going to provide a huge tax incentive for folks to build stuff here in the U.S.,
00:09:14.400 to manufacture here in the U.S.
00:09:16.420 I mean, things are really looking bright for the second half of 2025.
00:09:21.660 You know, I was with you.
00:09:22.860 I didn't think that 3 percent.
00:09:24.060 I kept using 3 percent and eventually 3.4 or above,
00:09:27.420 because as you remember, and we talk about it all the time,
00:09:30.520 in President Trump's first term, the average was 2.8 percent growth.
00:09:34.460 The fourth quarter of 2019, when things were really converging and coming together,
00:09:40.780 it was 3.4 percent.
00:09:41.960 So we thought it was achievable.
00:09:43.000 It was going to take a while.
00:09:43.840 I said on the show, I think a week ago, I talked to a lot of businessmen and real estate people
00:09:48.260 about exactly what you just said, that their phones are ringing off the hook.
00:09:53.000 People are looking to either take old, abandoned plants or facilities that were left,
00:09:59.280 maybe not used to maximum capacity,
00:10:04.000 and they're looking to purchase capital equipment and to expand production,
00:10:08.400 to expand actual capital investment,
00:10:11.320 which is you've drilled into our heads, E.J.,
00:10:13.900 is absolutely the essential thing you have to do.
00:10:16.500 And that would actually do it now.
00:10:18.400 You're fully expensive.
00:10:19.300 But you feel the implications of that, I don't know,
00:10:21.780 in the fourth quarter or the first quarter of next year.
00:10:24.220 This starts off with a bang.
00:10:25.760 And, folks, what we talk about,
00:10:26.900 this is like when we talk about birch gold,
00:10:28.500 about it's not the price of gold.
00:10:29.620 It's the converging forces that drive it.
00:10:32.780 The same thing here with the economy on the GDP.
00:10:35.040 It's the converging forces.
00:10:36.620 What you have in here, E.J., you can tell.
00:10:39.180 You have the closing of the border and the self-deportations of, you know,
00:10:43.400 a ton of these illegal alien invaders are just going home
00:10:46.240 because they understand it's going to be tough.
00:10:47.460 This is why just look at the freeways in L.A.
00:10:50.440 That's where you're starting to see wages.
00:10:52.460 Hey, things aren't slowing down.
00:10:54.280 They're picking up.
00:10:55.380 And American citizens are getting those jobs.
00:10:57.380 And you're seeing that now from the, you know,
00:10:59.560 the lack of this relentless pressure of illegal aliens coming across,
00:11:03.140 hundreds of thousands coming across the border every day.
00:11:05.320 You're starting to see the initial impact of the tariffs
00:11:10.180 and the people saying, hey, I want to avoid the 15% tariff.
00:11:13.320 I want to build a facility here.
00:11:15.420 Let's get some – let's start talking to people about long-term, you know,
00:11:19.100 capital investment.
00:11:20.860 This is all converging together, right?
00:11:23.260 If we get our financial house in order, you could turbocharge this.
00:11:27.280 Your thoughts on that, E.J.?
00:11:29.700 Steve, I think that's exactly right.
00:11:32.080 Look at how much the private sector is growing
00:11:34.400 when we prevent government from growing.
00:11:36.820 In other words, we're giving the private sector the breathing room
00:11:39.420 that it needs to expand and to grow and to increase prosperity.
00:11:44.940 All you literally need to do is have the government do nothing,
00:11:48.740 get out of the way.
00:11:50.240 And as the Trump administration has done that so successfully,
00:11:53.780 whether it's the president or the treasury secretary
00:11:56.880 or the heads of the other departments and agencies
00:11:59.360 who have all issued these directives to get the spending down,
00:12:03.260 it is having remarkable effects and very, very quickly as well.
00:12:08.140 Another thing, Steve, since you mentioned the tariffs,
00:12:10.640 so many people thought that this was going to cause runaway inflation.
00:12:13.720 You know, the inflation number here in this report,
00:12:16.600 one of the measurements that we can use for inflation
00:12:18.800 is the price index for GDP.
00:12:20.420 The increase there, the rate of increase, fell by almost half.
00:12:24.900 It's down to 2%.
00:12:25.980 It was almost 4% in the first quarter.
00:12:29.060 And even that, honestly, had very little to do with the Trump administration.
00:12:33.300 Most of that increase was due to prices jumping in the month of January.
00:12:37.480 And obviously, President Trump didn't even take over until the end of that month.
00:12:41.480 So much of that Q1 inflation was just baked into the cake by Inauguration Day.
00:12:45.960 So what we've seen is the exact opposite of what all the doomsayers told us was going to happen.
00:12:52.100 We have not seen the economy collapse, and we have not seen inflation skyrocket.
00:12:56.440 Instead, we've seen exactly the opposite of both of those two.
00:13:00.300 And part of the reason for that is another thing that you touched on,
00:13:04.320 which is the reprivatization and the re-Americanization,
00:13:08.760 if you want to call it that, of our labor market.
00:13:11.700 And what we've seen now is not only an increase in the number of jobs,
00:13:17.060 a steady increase in the number of jobs,
00:13:19.260 while the federal workforce, the number of bureaucrats,
00:13:22.080 has been declining every month of this year.
00:13:24.440 Not only have we seen more jobs, but it's more Americans getting those jobs.
00:13:29.060 We're no longer reliant on inexpensive low-skill or no-skill labor from abroad
00:13:34.820 flooding in to keep costs down, whether it's labor costs or other costs.
00:13:39.560 Instead, what we're seeing is an increase in good-paying jobs
00:13:43.160 and an increase in the number of Americans getting those jobs.
00:13:46.740 And that's really getting confirmed not only by the publicly available data
00:13:51.780 from the Bureau of Labor Statistics.
00:13:53.420 We're increasingly seeing that from private sector sources as well,
00:13:57.880 whether it's the payroll processing company's ADP or paychecks with an X,
00:14:03.380 or it's other sources like purchasing manager indexes, what we call PMIs.
00:14:09.960 We're seeing it in the Federal Reserve Bank data, the regional Federal Reserve Banks.
00:14:14.860 Again, I don't want to say that everything is sunshine and roses and rainbows.
00:14:19.360 It's not.
00:14:19.920 There's a lot of problems in the economy.
00:14:22.000 We've dug ourself a very deep hole,
00:14:24.060 and it's going to take a while to dig ourselves out of it.
00:14:26.320 But what I can say, Steve, is that the downward trajectory has stopped.
00:14:31.280 We've leveled out, and we're back on the upswing.
00:14:33.840 It's going to take us time, I understand that, to get back to where we were in 2019.
00:14:38.520 But again, things are moving in the right direction.
00:14:42.320 E.J., hang on for one second.
00:14:43.720 We'll take a short break.
00:14:44.580 I know you've got to bounce.
00:14:45.720 You're a wanted man today, but I've got just a couple more questions on the other side.
00:14:49.500 E.J. is 100% correct, and remember, Liberation Day on April 1st,
00:14:55.340 and now August 1st, they're coming down to it.
00:14:57.140 Short break.
00:14:57.720 E.J. on the other side.
00:15:00.100 This July, there is a global summit of BRICS nations in Rio de Janeiro,
00:15:04.800 the bloc of emerging superpowers, including China, Russia, India, and Persia,
00:15:09.940 are meeting with the goal of displacing the United States dollar as the global currency.
00:15:15.840 They're calling this the Rio Reset.
00:15:18.280 As BRICS nations push forward with their plans, global demand for U.S. dollars will decrease,
00:15:23.780 bringing down the value of the dollar in your savings.
00:15:26.960 While this transition won't not happen overnight, but trust me, it's going to start in Rio.
00:15:33.420 The Rio Reset in July marks a pivotal moment when BRICS objectives move decisively
00:15:38.880 from a theoretical possibility towards an inevitable reality.
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00:16:13.620 And the Rio Reset.
00:16:16.160 Text Bannon, B-A-N-N-O-N, to 989898.
00:16:20.580 Do it today.
00:16:21.820 That's the Rio Reset.
00:16:23.640 Text Bannon at 989898 and do it today.
00:16:27.040 Tell America's Voice family.
00:16:28.940 Are you on Getter yet?
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00:16:57.040 You know, I always watch and see who buys the New York Post.
00:17:02.760 Because it tells me that people want an alternative to people like you or me.
00:17:07.100 They want an alternative.
00:17:08.260 They want the Trumpian view.
00:17:10.460 And maybe they want to expose themselves to the Trumpian view so they can expose the weaknesses they've got.
00:17:18.700 But also, to be honest with you, the country is moving towards Trump.
00:17:22.380 These polls that come out and show him not doing well, I don't buy that.
00:17:27.100 I think his strength is still greater than the Democratic strength.
00:17:32.540 He is a stronger public figure than the Democratic people.
00:17:38.420 I mean, Obama still has tremendous charisma.
00:17:40.600 But Trump has strength.
00:17:42.060 And I think that's what all voters look for.
00:17:45.220 But they want a president who is a strong figure.
00:17:48.560 And he's got it.
00:17:50.280 Okay, let me have it.
00:17:51.100 Let me have it.
00:17:53.100 Thank you, Denver.
00:17:54.120 Right there.
00:17:54.500 I wanted to play that because it's about the animal spirits.
00:17:57.580 I want this audience to understand something.
00:17:59.940 Point blank.
00:18:00.780 You did this.
00:18:02.440 This is your win.
00:18:04.200 You back Trump in the darkest days.
00:18:06.560 And on Liberation Day, on April 1st, when all the geniuses were mocking us, oh, this is terrible.
00:18:12.060 Trump doesn't know what he's doing.
00:18:13.100 It's going to go to a depression.
00:18:15.320 Right?
00:18:15.840 You hammered through this.
00:18:18.120 And E.J.
00:18:18.600 Antony is absolutely correct.
00:18:19.780 This is not an endpoint.
00:18:21.200 It's all a process.
00:18:23.040 But we've hit an inflection point already.
00:18:27.400 And a big part of that is the animal spirits.
00:18:30.260 This is the core of capitalism, to unleash the animal spirits of the entrepreneur, of the American worker.
00:18:37.800 E.J.
00:18:38.140 Antony, how important is that in this beginning?
00:18:41.900 Because you can start to see we ain't in the sunlit uplands yet.
00:18:46.440 But, baby, ahead, you can see it.
00:18:49.240 It's in the far distance.
00:18:51.180 But you know you're on a path now.
00:18:52.720 You're on a journey.
00:18:54.120 E.J.
00:18:54.500 Antony.
00:18:56.280 And, Steve, that's all the entrepreneur needs.
00:18:58.680 As long as he knows that he's going to be able to keep what he earns, as long as he knows he's going to be able to benefit from his own inventions, let's say, or the work of his labor, he is going to go ahead and do those things.
00:19:14.240 Thomas Sowell famously said that wealth is created when those who know how to do it are free to do so.
00:19:21.740 That's it.
00:19:22.360 Again, this is all about government getting out of the way and unleashing those animal spirits.
00:19:27.980 You don't need to create them.
00:19:29.220 They're naturally there.
00:19:30.380 It's part of the human condition.
00:19:32.740 Humans are born into poverty, and we desire to get out of it.
00:19:36.460 And if you simply allow people to do so, if you respect people's property rights, for example, then they will go ahead and they will achieve those ends.
00:19:46.580 And that's precisely what we're seeing right now as you get government out of the way, whether it's taxation or regulation, you are going to see this economy continue to take off.
00:19:58.100 Give me the two or three things you looked at in the GDP report that you say, hey, this is giving me comfort that I can see the arc that we're on.
00:20:07.800 I see the path that we're on.
00:20:08.960 What are the ones?
00:20:09.880 Make us smart here, E.J.
00:20:11.080 What are your big takeaways from this?
00:20:14.740 This is entirely private sector growth.
00:20:17.380 This year, the government hasn't grown at all.
00:20:20.380 So that's absolutely phenomenal news.
00:20:22.700 Again, all of the growth that we have seen this year is coming from the private sector.
00:20:27.760 What a stark contrast that is to the Biden administration, where it was disproportionately reliance on excess government spending that drove us deeper and deeper into this massive debt hole.
00:20:38.600 So there's that huge takeaway.
00:20:40.100 Also, the fact that we are seeing inflation not go up but go down, another great, great sign.
00:20:47.600 That's not to say price increases have stopped entirely, but the rate of increase has slowed pretty dramatically.
00:20:54.540 And then finally, just that really, really good headline number.
00:20:58.160 We already have a three-handle, 3.0%.
00:21:01.100 Phenomenal news.
00:21:02.420 The economy is not losing steam.
00:21:05.520 It is gaining steam.
00:21:07.120 Really great news to see that we're already having an acceleration of growth, and that's before you get an investment surge from the big, beautiful bill.
00:21:16.500 So we can anticipate even better economic growth, I think, in the months and years ahead.
00:21:21.780 I remember I kept talking about 3.4% from 2019.
00:21:26.160 This is a couple of quarters ahead of where I thought we'd be, so it's a great inflection point.
00:21:31.380 ADP, you normally come on here and talk about the first cut at the labor numbers.
00:21:35.620 What was in the ADP report that excited you and what concerned you?
00:21:40.300 Well, in terms of that ADP report, not only seeing growth in the month of July, but also seeing June having to have a big upward revision.
00:21:52.240 In other words, ADP realizing, oops, we completely botched this one.
00:21:55.800 That was something we actually talked about, I think, last time I was on with you, Steve.
00:21:59.800 Thank you for having me then, too.
00:22:01.760 And essentially, what they're having to do is realize that, oh, I guess all of our predictions are wrong.
00:22:08.160 In other words, we're having to reevaluate how we look at this data to come to our conclusions.
00:22:13.820 Because, again, they're approaching this with terrible biases that are then skewing their results.
00:22:22.360 E.J., amazing.
00:22:24.360 And now I'm convinced that we can't let you go into Treasury.
00:22:26.860 You've got to be on the outside to be one of the surrogates so you can do all the shows and get everything done and do all your great work on the outside.
00:22:32.700 You're amazing.
00:22:34.080 Another called shot from E.J. and Tony.
00:22:36.160 Sir, your Twitter is on fire.
00:22:38.980 Where do people go and get it?
00:22:41.360 That's going to be the best place to find me.
00:22:43.380 The handle is atrealejantony.
00:22:47.860 Thank you, brother.
00:22:49.120 Fantastic.
00:22:50.680 Thank you, Steve.
00:22:52.680 Thank you.
00:22:53.260 We're going to go.
00:22:53.860 We've got a lot on this Tulsi situation.
00:22:56.200 John Solomon is going to join me later.
00:22:57.440 The President of the United States reposted a big old meme about Obama and treason.
00:23:04.660 And it's powerful.
00:23:06.520 And now we've got to stick the landing.
00:23:07.660 We're going to get to that shortly.
00:23:08.860 I asked Dave Walsh.
00:23:10.220 I was going to have Dave on today, but I asked him to move up his hit because I want him here on the economy part.
00:23:16.960 Dave, full-spectrum energy dominance.
00:23:19.040 Maybe we'll make a caveat for wind.
00:23:24.240 I think President Trump has officially gone to war with wind.
00:23:27.520 But talk to me about these numbers in light of it's only started to kick in the return to President Trump's full-spectrum energy dominance, sir.
00:23:37.120 Well, we have a new, I mean, the new emerging threat to electrification for our ratepayers out there, average citizens, is AI and data centers.
00:23:48.100 We just saw in the last day here a revised forecast through The Economist of 2.5% growth per year in power generation needed just for AI and data centers.
00:23:59.720 Before McKinsey, Booz Allen, BCG had been projecting about 0.9% per year power growth for data centers and AI, this will take that forecast up by a factor of almost three times to 2.5% a year.
00:24:13.080 On top of consumer demand for power itself, ratepayers growing 1.6% a year would mean a 4.1% every year growth in necessary power generation.
00:24:23.080 That compares to the whole period since the 2008 collapse of only 0.5% per year electrification growth was necessary, eight times more now in the next four years, which says we'd have up to a 500,000 megawatt shortage of electric power in the country by 2030 because of data centers and AI now, if you will, hogging up to two-thirds of new capacity demand.
00:24:49.760 So you've got these asset plays going on, such as I sent to Denver a picture of the Google acquisition of existing hydro capacity in Pennsylvania on the Susquehanna last week, announced that about 650 megawatts Google broadcasts like it's some new capacity they've acquired, $3 billion.
00:25:07.780 This is like 50-year-old capacity that has supported ratepayers in PJM forever with pretty much baseload power except July and August when the water's low, rest of the year full-time, buying that away from ratepayers and now hoarding it by Google for data center and server center need.
00:25:26.480 Hang on, hang on a second, hang on a second, full stop.
00:25:30.620 I want to make sure for the viewers, because we just had these GDP numbers and we had this, and we do have this, I don't want to call it a specter, but there's something, and I want to make sure we converge it.
00:25:43.600 Given the GDP numbers that we just saw, given the fact that the foundational element, as we've talked about over and over and over again with Trump, it's not tax cuts.
00:25:53.840 It's, and tariffs is a big part, but the fundamental part of Trump's economic growth plan has always been full-spectrum energy dominance and the cheapest forms of energy and plentiful energy, so access, availability, and cheap, right?
00:26:12.100 I mean, that's the, when you talk about Trump's economics, and anytime you're in a room with him, this is what he talks about.
00:26:17.940 We have a hole we have to dig ourselves out of, right, from the Biden years.
00:26:21.800 What EJ just said back there, please take your number two pencil and write this down.
00:26:27.780 This is private sector growth.
00:26:30.360 When Biden, these guys, went on MSNBC and CNN, and they're talking about, oh, we got growth, we got growth, it always came from more government spending.
00:26:39.240 It all came from, it was a Keynesian stimulus over and over again.
00:26:43.000 As we told you, this is what was going to drive inflation.
00:26:46.380 President Trump's theory of the case is totally different.
00:26:49.460 And this is why, by the way, we're going to have Wade Miller on tonight.
00:26:53.140 Wade Miller's going to come on from Sierra to talk about the rescissions.
00:26:55.820 Where's the pocket rescissions?
00:26:57.200 Where are the rescissionish packages?
00:26:59.780 You know, where's all that, you know, where's all these cuts?
00:27:02.720 But private sector growth.
00:27:06.300 Finally, we're starting to turn this ship around.
00:27:08.340 Now, a big part of that is you're seeing the beginning of all the executive orders and everything President Trump has done at the beginning on energy.
00:27:16.680 Because, once again, energy with tariffs in a closed border, right?
00:27:21.260 So you have, in EJ's great term, the re-Americanization of the labor force.
00:27:27.300 It's all coming together.
00:27:28.620 Now, at the same time, there is an underlying tension.
00:27:35.620 This is where Elon and David Sachs and these guys say, hey, I can see it's getting to 4% and 5% because it's going to be driven by technology.
00:27:42.680 It's going to be driven by AI.
00:27:44.940 There's a very interesting thing that has to happen there.
00:27:48.840 And can it start to chop, block, or slow the economy of the rest of the economy?
00:27:53.440 And that is energy.
00:27:54.480 And that is these data centers.
00:27:56.480 And this is something we want to make sure you fully understand right now.
00:28:00.440 So, because that's quite important.
00:28:02.340 Dave Walsh, hang on.
00:28:03.400 We're going to take a short break.
00:28:06.660 Birch Gold.
00:28:07.780 Now, more than ever, you've got to understand it.
00:28:09.720 Go to End of the Dollar Empire.
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00:28:15.560 End of the Dollar Empire.
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00:28:19.240 Ninth we're working on.
00:28:21.100 Read it.
00:28:21.800 Talk to Philip Patrick and the team.
00:28:22.960 Short break.
00:28:27.060 If you're a homeowner, you need to listen to this.
00:28:29.920 In today's AI and cyber world, scammers are stealing home titles with more ease than ever.
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00:28:44.440 Pay a small fee with your county.
00:28:46.220 And boom, your home title has been transferred out of your name.
00:28:50.940 Then they take out loans using your equity or even sell your property.
00:28:55.280 You won't even know it's happened until you get a collection or foreclosure notice.
00:29:01.000 So let me ask you.
00:29:03.120 When was the last time you personally checked your home title?
00:29:08.120 If you're like me, the answer is never.
00:29:11.260 And that's exactly what scammers are counting on.
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00:29:49.360 What if he had the brightest mind in the war room delivering critical financial research every month?
00:29:55.380 Steve Bannon here.
00:29:56.500 War Room listeners know Jim Rickards.
00:29:58.200 I love this guy.
00:29:59.620 He's our wise man.
00:30:00.560 A former CIA, Pentagon, and White House advisor with an unmatched grasp of geopolitics and capital markets, Jim predicted Trump's Electoral College victory exactly 312 to 226, down to the actual number itself.
00:30:16.640 Now he's issuing a dire warning about April 11th, a moment that could define Trump's presidency in your financial future.
00:30:23.700 His latest book, Money GPT, exposes how AI is setting the stage for financial chaos, bank runs at lightning speeds, algorithm-driven crashes, and even threats to national security.
00:30:35.920 Right now, war room members get a free copy of Money GPT when they sign up for Strategic Intelligence.
00:30:42.500 This is Jim's flagship financial newsletter, Strategic Intelligence.
00:30:47.320 I read it.
00:30:48.420 You should read it.
00:30:49.420 Time is running out.
00:30:50.340 Go to RickardsWarRoom.com.
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00:30:55.560 Go now and claim your free book.
00:30:58.020 That's RickardsWarRoom.com.
00:31:00.540 Do it today.
00:31:01.840 Any issues with this White House taking the power of the purse away from Congress?
00:31:07.280 Do you worry that what's happening right now is sort of making Congress a rubber stamp and, careful how I say this, but a lesser branch of government?
00:31:15.900 You know, I think for a long time Congress has been abdicating their power of the purse.
00:31:21.640 In fact, what happens almost every year is there are no appropriation bills and there's one big bill.
00:31:29.280 And really, most rank-and-file people have nothing to do with it.
00:31:32.340 Even the appropriation committees have very little to do with it.
00:31:34.860 And one person, the leader of the majority and the leader of the minority, work out the details.
00:31:39.840 And if you're a special interest and you want one specific tax break, you don't bother talking to any rank-and-file congressman to tell them the pros and cons of this.
00:31:48.560 You go to one person.
00:31:49.540 And that's why the leaders in both parties raise millions and millions of dollars because both corporate and labor interests only go to the top of the party, only go to the leadership.
00:32:01.000 And the whole, you know, having the power of the purse and the adjudication of what we spend doesn't really happen because the process is so broken.
00:32:09.580 We rarely have budgets.
00:32:10.920 We rarely have appropriations bill.
00:32:12.360 So it's what I've been telling people since the first big, beautiful bill of the summer is we're going to get another big, beautiful omnibus come the end of September.
00:32:21.200 And that's what normally happens.
00:32:22.680 Some enormous bill nobody can read, put out without a couple hours to look at it.
00:32:27.000 That's what will happen September 30th because the system is so broken.
00:32:30.500 People haven't woken up enough to really change it.
00:32:34.480 Ooh, Mr. Bannon, you told us that a couple of days ago and now you heard it from Rand Paul.
00:32:39.500 What did E.J. and Tony just tell us?
00:32:42.360 That the private sector is growing faster than public sector of the spending, cut the spending, and you're going to get growth.
00:32:49.600 You keep cutting it back, you're going to get turbo growth, turbocharged growth.
00:32:53.880 Right there he said the quiet part out loud.
00:32:55.660 I'm telling you, the Senate under John Thune, who are not doing any, they're going to leave here and do almost virtually no getting his people on board, President Trump's people, the confirmation process.
00:33:11.240 He's not going to go into recess.
00:33:14.040 Right there, they're telling you they don't trust Trump.
00:33:16.000 If they don't go into recess, formal recess, it shows you it is in the president's face.
00:33:21.760 President finally last night came out.
00:33:23.360 Guess what he was raving, rant and raving about?
00:33:26.320 Blue slips.
00:33:27.360 You heard about blue slips here over the last couple of weeks?
00:33:29.620 He's all over Grassley.
00:33:30.580 They're not giving him the people he wants.
00:33:34.440 And right now, Rand Paul just told you, so don't say you haven't been warned, war room posse.
00:33:40.080 So get ready for it, baby.
00:33:42.240 They're going to come back here after Labor Day in the third week of September, in the run-up to the 30th of September, they're going to drop a 9,000-page omnibus for the entire year.
00:33:52.380 And it's going to have every evil you want in there.
00:33:55.260 And it'll be what chokes down growth.
00:33:57.280 Why?
00:33:57.820 Because it's all about federal spending.
00:33:59.640 We need rescissions.
00:34:01.140 We need pocket rescissions.
00:34:02.860 We need impoundments.
00:34:04.420 Keep cutting.
00:34:05.880 And this thing will get to 3.4%.
00:34:07.840 We'll get over 3.5%.
00:34:09.300 We'll get to, wait for it, put a four-handle on it.
00:34:13.500 Okay?
00:34:14.540 Then the theory of the cases, and they all mocked us.
00:34:16.640 You can't grow your way of it.
00:34:17.760 Hey, you got to, as I said, you got a shot.
00:34:20.320 This is your last shot.
00:34:21.280 Why not take your last shot?
00:34:22.520 Because if you don't do it now, you're not going to have a shot.
00:34:25.960 And the big, beautiful bill had a lot of, you know, there was some ugly warts on it.
00:34:29.880 Right?
00:34:30.340 We didn't love it all.
00:34:32.020 But it gave you a shot for a supply side.
00:34:34.920 And right there, Rand Paul told you, so you've been, take your number two pencil out.
00:34:38.380 You've been warned.
00:34:39.740 I told you this was going to happen.
00:34:41.240 And Rand Paul said, hey, they're working on it right now.
00:34:44.220 When they say bipartisan appropriations, that means Democrats and big government Republicans coming in with massive checks.
00:34:51.900 We're going to go to Scott Besson in a second.
00:34:53.560 I want to go back to, I want to go back to, oh, by the way, take your phone out, Bannon, at text Bannon 989898.
00:35:02.180 Get the ultimate guide from Birchgold.
00:35:04.440 It's a quick study, and it's free to get you up to speed on capital markets, all of it.
00:35:08.080 You need that now more than ever to understand all this is going on, particularly the jargon.
00:35:12.620 So Dave Walsh, number one, Scott Besson.
00:35:16.180 Okay, hang on for one second.
00:35:17.400 Let's go live to the Breitbart event with the great Matt Bull, Scott Besson.
00:35:20.640 We're going to listen in, see what we've got going.
00:35:23.040 Okay, and Dave Walsh on the other side.
00:35:24.740 Thank you very much for coming, the chairman of the National Bank of Perth.
00:35:30.700 I'd also like to thank Ballard Partners and the Financial Services Forum.
00:35:35.200 I'm glad you could be with us today.
00:35:36.920 Let's get things started with Breitbart News Editor, Washington Bureau Chief Matt Boyle,
00:35:42.640 and Treasury Secretary Scott Besson.
00:35:50.640 All right.
00:36:05.660 Mr. Secretary, first off, I really want to thank you for taking the time to do this.
00:36:09.060 We've got to start with the big breaking news.
00:36:12.640 GDP, 3% for the second quarter this year, numbers out this morning, blew away expectations.
00:36:20.800 The Trump boom is real.
00:36:22.780 How did this happen?
00:36:23.720 Well, as I was trying to explain to people who panicked on April 2nd, we're doing peace deals,
00:36:33.340 trade deals, tax deals, and they're all coming together.
00:36:36.520 And a lot of it is just confidence and momentum coming back.
00:36:41.020 That, you know, I was never concerned about what was going to happen.
00:36:45.460 There was a lot of disinformation, a lot of whataboutism, or what if we have this inflation?
00:36:52.340 What if terrorists do this?
00:36:53.740 What if that?
00:36:55.220 And, you know, I just think the underlying fundamentals and the policies that President Trump's putting
00:37:01.900 in place are incredible.
00:37:04.180 That the, you know, when you think about the one big, beautiful bill, the permanence of that
00:37:10.560 is that the confidence that that's going to build, I think it was Al Jolson, after he saw the first
00:37:18.320 talkie movie, said, you ain't seen nothing yet.
00:37:22.020 Like, I think we're just going to accelerate third, fourth quarter.
00:37:27.440 And I think we can go back to the 90s, where we had this very strong non-inflationary growth
00:37:36.260 for a decade, because right now we're also seeing about 1% of GDP in AI spending by the hyperscalers.
00:37:47.680 So all in, they're roughly spending $300 billion a year.
00:37:52.500 And in a perfect world, and world's never perfect, but, you know, my dream world, they would keep
00:37:58.800 spending, and then the AI productivity boom would kick in first, second quarter next year,
00:38:05.540 and we could have something that looks like the 90s that hopefully ends in a better way.
00:38:11.960 So people are excited about this.
00:38:15.400 So the other thing, the other big numbers that came out this morning, ADP jobs numbers,
00:38:19.900 also better than expected, 104,000.
00:38:22.700 And private sector job growth, you've called the broader picture of the American economy
00:38:30.000 that's been coming together the Trump economic miracle.
00:38:33.240 Talk to us about the ADP jobs numbers, private sector job growth, and the broader Trump economic
00:38:38.300 miracle.
00:38:38.640 Well, I think one thing that's important here is, you know, there's the job numbers, but
00:38:43.080 then we look at the number of jobs for American citizens, and that's really taken off.
00:38:48.700 And somehow, in the academic literature, in the mainstream media for years, the one area
00:38:56.660 where supply and demand didn't matter was low-end labor.
00:39:01.380 We can let hundreds of thousands, and it turned into millions, and then maybe tens of millions
00:39:07.700 of people crossed the border, and it wouldn't suppress wages.
00:39:11.920 And now, you know, I think that we've had this horrible, horrible despair, especially among
00:39:22.520 young men aged 16 to 35.
00:39:25.640 We're seeing a real problem there.
00:39:31.020 But I think now that we're seeing real wage growth, that good, high-paying jobs are coming
00:39:37.320 back, that I think this is just going to build on itself, because a lot of these commitments
00:39:42.500 for the trade deals are for substantial investments in the U.S.
00:39:49.460 One of the things you mentioned, you mentioned wages.
00:39:51.720 We're seeing wages outpace inflation this year.
00:39:55.660 This is a big deal.
00:39:56.460 I don't think this happened during Biden's presidency.
00:39:59.400 I think this is a unique thing to President Trump's economy.
00:40:03.100 Can you talk to us a little bit about that?
00:40:04.440 Look, I think other than, you know, I'm sure the President would agree with me on both.
00:40:10.920 Other than the fact he's the most transformative political figure of this century, the other
00:40:15.700 reason he won is because the bottom 50% of the working Americans got crushed.
00:40:23.100 That if you go by the standard inflation numbers, PCE, CPI, during the Biden years, it was about
00:40:34.400 18 or 21%.
00:40:36.440 The wages, reported wages for working Americans were about 3% below those numbers.
00:40:45.200 But that isn't the real story, because working class Americans have a different basket of goods
00:40:53.180 and services than everyone in this room.
00:40:56.080 They're dependent on used cars, insurance, rent.
00:41:01.400 They don't have assets.
00:41:03.340 So they probably experienced inflation between 32%, 35% with wage growth at 16%.
00:41:11.540 So they had a gigantic, gigantic loss of purchasing power.
00:41:16.360 And so with this administration, we're committed to doing two things.
00:41:21.700 And everyone says, how are you going to fix the affordability crisis?
00:41:25.340 And the first way to do it was to bring down inflation to make sure inflation doesn't get worse.
00:41:31.260 So in May, we had the best inflation number, four years, they're down, inflation's down.
00:41:39.040 But as you said, we're going to get real wage growth up, which is what happened in President Trump's first term.
00:41:48.160 In President Trump's first term, hourly workers did better than supervisory workers.
00:41:53.240 The bottom 50% of households' net worth went up more than the top 10%, which might not suit anybody in this room.
00:42:01.340 But it was great for working Americans.
00:42:04.080 Right.
00:42:04.420 So now, Mr. Secretary, you just got back from Stockholm, Sweden.
00:42:08.260 You were there meeting with the Chinese delegation about trade talks.
00:42:12.720 This is your third such meeting, I believe, with them.
00:42:14.980 Yes.
00:42:15.160 Can you talk to us a little bit about what happened there?
00:42:17.560 And then we'll get into kind of some of the specifics about where things go from here.
00:42:23.080 Well, what I can tell you is I don't think it's overstating it to say that they were a little on their heels.
00:42:31.680 Because the week before, we had just done the Japanese trade deal.
00:42:36.880 Then the day before, we began our talks.
00:42:39.840 I know you were in Scotland with the President, Ursula von der Leyen, President of the European Commission, came and did, you know, what's the deal of the century with the EU.
00:42:54.640 So, you know, Japan, EU.
00:42:58.340 We are, I believe, meeting with the Koreans this afternoon.
00:43:01.720 So, you know, our largest trading partners, we have trade deals with.
00:43:06.920 So, the Chinese who like to project strength and under this monolithic view, they were on their heels.
00:43:19.060 Because it was like, you know, listen, guys, this is the way it is.
00:43:22.880 And you've got a pretty good deal going.
00:43:26.480 But the rest of the world is now with us.
00:43:29.680 And you're not going to get a special deal.
00:43:33.360 You're not going to get this.
00:43:34.600 The EU is the bigger trading partner.
00:43:37.480 And the more excess manufacturing.
00:43:40.040 I keep telling them that they have to, the Chinese have to rebalance their economy.
00:43:45.100 They have the most unbalanced, imbalanced economy in the history of the modern world.
00:43:49.700 They're 30% of manufacturing.
00:43:51.880 They have a current account surplus that's equivalent to 2% of global GDP.
00:43:56.440 We haven't seen that since the 1870s, 1880s, when there was the British Empire.
00:44:02.920 And, you know, I just said that the world's with us now.
00:44:08.200 Because for a while, it looked in April, May, like the U.S. was alone against the world.
00:44:15.500 Now that we've done deals with our top trading partners, that we have a lot more leverage.
00:44:21.660 And, as you know, nobody generates leverage like the president.
00:44:25.420 That's exactly right.
00:44:26.580 So one of the things he told me that President Trump told me when I interviewed him in Scotland about China,
00:44:31.600 because I asked him about your meetings, which were ongoing at the time when we did the interview a couple days ago.
00:44:37.040 By the way, Turnberry, fantastic property, guys.
00:44:39.560 Right?
00:44:39.720 If you ever get a chance, go, please.
00:44:41.640 Like, it's beautiful.
00:44:43.340 They're right there on the coast.
00:44:44.460 But one of the things he said about China in particular is the goal is to get China to open up.
00:44:50.800 Did you get the sense that they're open to opening up or their economy to American goods?
00:44:57.060 They will move at a very deliberate pace.
00:45:01.720 I was in the macroeconomic investment business for 35 years.
00:45:06.460 And I think probably the most overused saying recently is the Ernest Hemingway saying,
00:45:15.740 how did you go bankrupt slowly than quickly?
00:45:18.880 I think that with a lot of these big economies, that it's a slow process and it'll happen quickly.
00:45:26.980 You know, I remember that the Japanese had the bubble burst.
00:45:33.480 They didn't want to do much about it.
00:45:35.040 Then Abe came, you know, President Trump's great friend, Prime Minister Abe, came into office in 2012.
00:45:43.080 And boom, the Japanese hit the accelerator and never looked back.
00:45:47.560 So my sense is that it's not going to be a straight line that they are doing.
00:45:56.000 They have five-year planning sessions.
00:45:59.180 They are meeting for the planning sessions.
00:46:02.660 It's called the five-year plan.
00:46:05.060 They are doing their five-year plan in September or October.
00:46:09.260 They'll announce the results of that in February.
00:46:12.260 So I encourage them that if they are going to rebalance to more of a consumer economy, to make that known.
00:46:21.880 So we'll see.
00:46:22.920 So you mentioned the other deals, the EU deal, and that happened while we were there with the President.
00:46:28.740 We saw the Japan deal.
00:46:30.300 We've seen deals with the Philippines, with Indonesia, with Vietnam.
00:46:34.960 Obviously, the United Kingdom.
00:46:36.300 Previously, that was the first big one.
00:46:37.700 And the Prime Minister of the U.K. came right after our interview with the President.
00:46:42.640 Literally, the staff were yelling out, the Prime Minister's going to be here in four minutes.
00:46:46.460 You've got to wrap it up.
00:46:47.760 But, Mr. Secretary, one of the things the President told me was that in the previous administration last year,
00:46:57.500 the world leaders are telling him this, that our country was dead.
00:47:01.260 Like, we were done.
00:47:02.260 Like, we were finished.
00:47:03.100 We were on the decline.
00:47:04.000 And now they're telling him we're the hottest place in the world.
00:47:07.920 I think you were asked about, you know, as a macro investor last night when you were in Stockholm,
00:47:13.060 where would you invest right now?
00:47:15.060 You said the United States of America.
00:47:16.640 Your thoughts on that?
00:47:17.620 Like, is this the hottest place in the world right now?
00:47:19.780 I think not only is it the hottest place in the world,
00:47:23.440 that we've set the conditions to really accelerate that.
00:47:28.720 So, I had a very nice life in the private sector, nice office in my hometown in Charleston, South Carolina.
00:47:36.680 The reason I came out from behind my desk was for two reasons.
00:47:40.720 I was alarmed by the debt levels that we were seeing, the Biden administration.
00:47:45.480 We inherited a mess.
00:47:46.760 A 6.7% deficit to GDP, the highest we'd ever seen when we were at peacetime or not at war, not in a recession.
00:47:58.480 And then the other thing that I was very worried about was this regulatory state
00:48:04.320 and the amount of regulation that was just being put in the federal register.
00:48:10.520 And I think that this deregulation is both a huge amount of economic friction, but it's also a big tax.
00:48:21.040 And I think now, as we're bringing down these barriers, that, you know, with the tax bill,
00:48:27.600 100% depreciation permanent for equipment for the next five years, you build your factory in the U.S.,
00:48:35.940 you can write that off 100%.
00:48:38.280 We are pushing for energy dominance.
00:48:42.420 So, we're going to have abundant and cheap energy.
00:48:46.560 We've addressed, you know, imagine this, like there's an AI czar.
00:48:50.100 When you look, when you see the interview with Mark Andreessen and Ben Hurwitz
00:48:57.560 and why they migrated over to President Trump, they couldn't get the white, you know,
00:49:01.860 to the greatest venture capitalists of the generation, they couldn't get the White House,
00:49:06.240 the Biden White House, to call them back on AI.
00:49:08.960 And now we have an AI czar.
00:49:12.560 We are having a digital asset event.
00:49:16.620 So, I think we are setting the stage for great policies, but also focusing on the jobs of the future.
00:49:30.900 So, I am super bullish on that.
00:49:34.540 And then, you know, when you deal, what's fascinating for me now is my job for 35 years as a macro investor
00:49:44.360 was when policy makers met to kind of have my ear up against the door,
00:49:49.840 try to figure out what was going on in the room, what they were saying,
00:49:54.580 what they could do, what they would do, what they should do, and how the market would react.
00:50:00.440 Now, I'm in the room, and I'm thinking, okay, what can we do?
00:50:05.100 What should we do?
00:50:06.520 What's possible?
00:50:07.980 How will the market react?
00:50:09.320 How will the economy react?
00:50:11.540 And I tell you that the more I deal with the Europeans, that they've just given up.
00:50:20.240 It is a regulatory morass.
00:50:23.220 You know, Mario Draghi, you don't have to read his, I think it's 300-page report.
00:50:29.140 The FT, about two and a half months ago, did a summary of the report.
00:50:33.700 And he came out and said that the EU internally taxes themselves 100% on services and 50% on goods.
00:50:43.820 The EU was supposed to create economic, get rid of economic friction,
00:50:49.620 whether it's in finance, whether it's in technology, whether it's in energy.
00:50:54.840 All the EU wants to do is over-regulate.
00:50:58.720 It is a bunch of supernatural national bureaucrats with no industry experience sitting in Brussels,
00:51:06.460 and they've just given up.
00:51:09.060 And, you know, I think now with America, there's just nothing like the U.S.
00:51:14.040 With the innovation, that we are blessed with these natural resources, I think we're going to be unstoppable.
00:51:25.260 I think the Chinese model, their economic model, is starting to implode,
00:51:32.020 that somehow they believe that gravity doesn't apply to them in real estate.
00:51:36.200 They're in the middle of a real estate crisis.
00:51:37.740 And I think that the rest of the world will have had it with just the Chinese pushing out these cheap goods.
00:51:49.660 Okay, so last thing on trade is that one of the things, so we had our John Carney,
00:51:55.420 our economics editor who introduced us here, ran the numbers.
00:51:59.480 Apparently, the deals that you guys have already made are close to 60% of world GDP.
00:52:05.240 Obviously, we have an August 1st deadline coming up that the president has made clear.
00:52:10.000 If the deals are not in place, then the tariffs are going to go into place even more so then.
00:52:15.960 Do you expect any 11th-hour deals?
00:52:18.620 And talk to us about just how consequential this alliance that has basically come together here
00:52:24.200 through these deals that the president's made is for the world economy.
00:52:28.520 Yeah, so we have 18 important trading partners, 60% of GDP, and then, you know, excuse me,
00:52:37.580 a lot of the GDP we may not trade with.
00:52:41.500 So, if I said it in Stockholm yesterday evening, that if there's not a deal by August 1,
00:52:58.760 I would encourage market participants, corporate America, even the countries, not to panic,
00:53:06.120 because you can still do a deal, you're just going to go back to your April 2nd reciprocal tariff level.
00:53:14.040 And yet, it may be on for three days, it may be on for three weeks, it may be on for three months.
00:53:19.980 You can continue negotiating.
00:53:22.160 But back to the president creating leverage, that when you, the whole world's been at 10%.
00:53:28.720 If you have not come with a good deal, if you have not moved quickly, I can tell you,
00:53:35.000 jumping from 10% back to, you know, I'll pick a number, back to 34% is going to get a lot of attention.
00:53:43.940 Okay.
00:53:44.720 That's Secretary of Treasury Scott Besant reinforcing a lot of what we said in the first half hour.
00:53:49.920 Very, very powerful.
00:53:50.980 Matt Ball doing a great job coming off that really amazing interview with the president over at Turnberry,
00:53:57.400 President Trump's course in Scotland.
00:53:59.540 Dave Walsh is going to stick with me at the top of the hour.
00:54:02.760 We've got Joe Allen's going to come in, John Solomon, a lot to report on this,
00:54:06.880 trying to stick the landing on President Trump.
00:54:11.160 I'll show you this meme.
00:54:12.840 Really big time.
00:54:13.840 Also, on the blue slips, President Trump, I don't know, kind of went off on grass last night.
00:54:19.340 Got to go pretty far in the woods to hit his tripwire.
00:54:21.900 I think we hit it because he just blew back on the president about the blue slips.
00:54:26.500 The blue slips are one of these structural, you know, customs and traditions of the United States Senate.
00:54:33.020 I don't think it's changing anytime soon.
00:54:35.100 And it does protect you when you're in the minority.
00:54:37.580 But the Democrats use it far too much.
00:54:40.980 This is the reason we have HABA now as another interim for 120 days.
00:54:46.240 Okay, short commercial break.
00:54:49.480 On a 3% Wednesday, Scott just sat there.
00:54:53.980 Scott Besson told you, what is it?
00:54:56.060 Peace deals, trade deals, tax deals.
00:54:58.100 How about that?
00:54:58.860 Bingo, bango, bungo.
00:55:01.100 That's a get to a three handle in the economy.
00:55:04.300 The re-Americanization of the workforce.
00:55:06.360 He hit the most important number in the ADP report.
00:55:08.500 American citizens are getting jobs.
00:55:11.800 American citizens.
00:55:13.740 And the private sector growing faster than the public sector.
00:55:19.260 I think there's some lessons here.
00:55:20.860 Some pattern recognition.
00:55:22.820 What a morning to take us out with the right stuff
00:55:26.040 and tee us up for the second hour of the War Room.
00:55:28.840 Stick around.
00:55:29.240 We'll be right back.
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