WarRoom Battleground EP 125: Extraction Under Fire: 1 Year Later; England Plans To Freeze This Winter As Energy Prices Skyrocket
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Summary
In this episode of the War Room, Chief of Staff Gen. Kelly discusses the situation at the airport in Kabul, Afghanistan, and how the United States is working with the Taliban to ensure the safe passage of American forces and their families.
Transcript
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this is what you're fighting for i mean every day you're out there what they're doing is blowing
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people off if you continue to look the other way and shut up then the oppressors the
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authoritarians get total control and total power because this is just like in arizona this is just
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like in georgia it's another element that backs them into a quarter and shows their lies and
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misrepresentations is why this audience is going to have to get engaged as we've told you this is
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the fight all this nonsense all this spin they can't handle the truth war room battleground here's
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your host stephen k bannon real ways to help americans get safely to kabul airport and get out
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of the country but the reality is this is the taliban no matter what they're saying you know
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about changing their ways and they're going to allow afghans to live safely and they're going
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to allow women with more rights whatever it is they're saying we're going to have to see how they
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actually what they actually do and they're the defense officials who i'm speaking to do not have
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a lot of confidence that they have changed their ways and this is going to be some new version of
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the taliban but right now we're one reason that we're not hearing a lot of criticism for them and
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we probably won't hear any criticism of the taliban for specifically from the defense department before
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the u.s is completely out and that is because they are helping them and they don't the the military
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the pentagon they don't want to do anything to tip that balance so that the taliban would no longer
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help americans you know as jeff mentioned there are still a lot of americans who are trying to get
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out and the u.s is also trying to help afghans if they can to get out so uh in the meantime they are
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working with the taliban and hope that at the end of the day some credence is going to have to be given
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to the taliban to make sure that they protect our our troops uh what's been demonstrated today is
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that they can't do it uh they're certainly not going to be able to guarantee safety now the taliban
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would surely like to have us out as quickly as possible uh they also need money uh there's an
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argument and we would like to have a little bit more time to make sure that we get as many people
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out as we possibly can there's an argument that says that there is a deal here for like
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andrea says maybe an extension of a couple of days to make sure that we get as many people out as we
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possibly can um and the exchange is uh the taliban gets some of the money or all the money that's
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currently locked up and sequestered by by by western uh financial institutions whether or not that's
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actually going to happen remains to be seen but at the end of the day some americans got to turn the
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lights out on the american presence there and that's going to be the most dangerous time i know
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it sounds like though we're having to pay a ransom to the taliban right i mean that that's what that
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sounds like and and and it's an uncomfortable position for any american president is is no i think
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we've already no matter what you're trying to do we've already paid a ransom to them in agreeing that
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31 august is the date uh they will give us safe patches until 31 august and that was the deal as
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originally i think the dangerous part of this is is just like colonel jacobs was saying is
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as we get a smaller footprint the attack pattern gets more intense and what we're seeing right now
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is kabul is the equivalent of a mogadishu or uh baghdad uh circa kind of 2004 where yeah the taliban
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have so-called taken over the country but they do not control the country there are tons of different
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factions operating in and outside of kabul right now constant contact with the taliban working to
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ensure civilians have safe passage to the airport we are particularly focused on our engagements on
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making sure every american who wants to leave can get to the airport where we have been seeing
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challenges with americans for for americans we have thus far been able to resolve them we've been
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able we've made look and we we we made clear to the taliban that any attack any attack on our forces
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or disruption of our operations at the airport will be met with swift and forceful response
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we're also keeping a close watch on any potential terrorist threat at or around the airport
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including from the isis affiliates in afghanistan who were released from prison when the prisons were
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emptied and because they are by the way and make everybody understand that the the isis in afghanistan
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are this have been the sworn enemy of the taliban i've said all along we're going to retain a laser
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focus on our counterterrorism mission working in close coordination with our allies and our partners
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and all those who have an interest in ensuring stability in the
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okay uh look at that we're here to commemorate for much of the show the uh 13 american heroes that
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died at the abbey gate massacre we do want to tee it up with that the lies and misrepresentations
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i've got uh jason jones who's been did incredible work in afghanistan at the time and also has been part
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of the vulnerable persons project to support uh christian families in afghanistan since then i've
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also got frank gafflinger go through all this and frank's going to give us some of his uh first
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thoughts on this horrific uh the affidavit this joke that was put out today about the ransacking and
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raid in mar-a-lago let's go to jason jones first jason thank you for joining us by phone really
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appreciate it i talked to you we just played it right there so you and frank could refresh your
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memories of the lies and misrepresentations the incompetence uh and i mean almost people some people
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argued hey they almost had to be in cahoots with the ccp and the taliban because this was so horrific
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it's a year ago today that the 13 heroes died we just played all the t up for that of of how they
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jammed these guys up by agreeing to the 31st and and they had this kind of cocky arrogance
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it was all going to go fine jason jones tell us about that time uh you were there you were on the
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show all the time you had direct contact with in afghanistan and helping people get out
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what happened well see first of all you know the vulnerable people project is still in afghanistan
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we evacuated people this week we have never left we're caring for the widows and orphans of our
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of our of our afghan partners who who were murdered because of our ham-fisted abandonment of the people
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of afghanistan um so we haven't left and the u.s government turned the lights out in afghanistan but
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we're keeping the light on you know listening to that clip that you just played is infuriating
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especially in light of what we've just been revealed in the past 24 hours that the cia had
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eyes on the terrorists uh that detonated the bomb that killed 12 marines in a navy quorum and 170
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afghans were killed and thousands were injured and as you know i was on your show then and thank god for
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steve bannon and the war room posse i was on your show at the time showing footage of the hell that
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was outside of the uh gates of the airport but now we know the cia had eyes on him told the marines to
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stand down just to pay attention but not to engage um the terrorists who then detonated a bomb and killed
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uh those 13 american service personnel no it's it's really unbelievable jason jason jason hang on
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hang on slow down for a second i want that story broke in the new york post today just get people up
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to speed on exactly what you're talking about because it's another blockbuster and clearly
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they waited until the first year anniversary to break this story but we now know if you see this
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what we just played understand the cia knew about it debrief people and said that the gates to the
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airport particularly the abbey gate wasn't going to be a central problem is this am i summing up
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correctly what the cia briefing was to the to the military intelligence and to the military folks
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yeah that was the briefing and not to engage the terrorists and steve i was a bit nervous because
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i've been saying in the media that we were warned on august 25th to remove our people from abbey
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gate that there is a terrorist attack it's imminent and i i you know i was didn't want to say that out
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loud because how did you know we were warned from our people in the military get your folks away from
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abbey gate uh in the hours leading up to the attack and now we know the cia had eyes on the actual
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terrorists the date that hit this bomb and i wonder you know biden says that thing i've always been this
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i've always said that i've always said this he said on july 6th of last year that afghanistan will
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never fall but we now know we now know that u.s special forces were doing joint patrols with the
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taliban in early of july of last year we now know uh well we knew then we knew in early july of last
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year that 85 percent of afghanistan 85 percent of the districts had already fallen to the taliban so
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when biden said that in early july he knew so what happened american citizens in afghanistan didn't
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leave the country and we were evacuating u.s citizens until christmas of last year that the u.s
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government claimed did not exist and we got our last afghan uh an american we got our last american
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citizen out of afghanistan around christmas of last year so how many american citizens died
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because they listened to the president of the united states they trusted the president united
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states that afghanistan wouldn't fall when 85 percent of the districts had already fallen
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and jason hang on for one second i know hang hang on i know you're by phone just hang on for a second
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i want to bring you frank gaffney for more context we're gonna come right back to you frank
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i know your blood's boiling because you you of all the specialists in in radical jihad which you've
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kind of dedicated the last 30 years of your life on i know your blood has to be boiling when we play
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that cold open of all the lies and misrepresentations were told to the american people but particularly
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now as jason says it's obvious the cia knew about the the groups they were monitoring the military's
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it was a brief not to not to really play hardball at those gates and what we have we have 13 dead
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marines american heroes that died in that massacre frank gaffney
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the thing that does make the blood boil steven you're right mine is uh is that the way this is
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perceived by all of our enemies but most especially by those that are sharia supremacists
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is as submission whether it's the lies of the president or whether it is the complicity of
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our intelligence agencies or whether it is the extent to which in the aftermath of uh you know
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the kind of horrors that you've just chronicled we left 83 billion dollars of military equipment
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very advanced military equipment a lot of it behind uh and and that we're now contemplating
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apparently giving them billions of dollars more uh they're frozen reserves to be sure but still
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to terrorists terrorists who now make no secret of their further intensified determination
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to do what sharia the islamic doctrine that impels them to engage in jihad tells them it is
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the ultimate endgame of it which is their dominance of the world
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that's what i want this because people say this shows incompetence this shows weakness
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this shows you know all sorts of things about how they extracted how they did this extraction under
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fire you take it up another level you say for the supremacist the sharia supremacist
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it shows you that we're actually not just weak but prepared to submit to their uh to their order
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which is essentially what happened on this extraction am i am i stating that correctly
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you got it exactly right steve and and uh in accordance with sharia that kind of behavior
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on the part particularly of the infidels and especially powerful infidels
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simply again obliges those who adhere to this doctrine to redouble their efforts so i had a chance
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to talk with our colleague sam fattis about this today and he of course spent uh much of his
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20 years undercover in the central intelligence agency fighting these guys uh mostly in pakistan
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and he says this is now a terrorist super state that is armed that is that is financed uh it has money
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to be sure it's not getting to the people they're starving and all the rest of it but
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these are people who are now further disposed further determined further capable of waging
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jihad against us and the worst of it in a way is it's not just over there steve as i think we talked
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about a bit yesterday by some estimates there are a very large percentage of between 70 and a hundred
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thousand people who have been put into this country instead of the fellas and and gals that
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jason was trying to help and who were supposed to be on those planes who we don't know the exact
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background of but many of them the majority are military age young men and probably taliban no
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uh frank hangar for one second let me bring in jason sorry yeah jason i'm going to get you back on to
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talk about the vulnerable people project at another time but but i got to have you tell the audience
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people of authorities in this government at the highest level looked into the camera and said we
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have on multiple occasions said we have all the americans out and you just told me that uh you guys
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are still extracting american citizens all the way up to christmas which was three or four months
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later so what's the truth did the biden regime do what they said they were going to do and promise
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the american people were all the american citizens out or were there still american citizens left
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well cia director burns i think it's being reported in the press but i know from trusted sources
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uh it's been pressuring the white house to make right we have 18 000 sivs in the pipeline
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that state department is fighting for that we know of but there are 150 000 other sivs those are
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afghans who are being hunted by the taliban because they fought shoulder to shoulder with us
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those are the afghans who you saw hanging from lampposts you heard about being set on fire
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and beheaded no they lied about americans they lied about our afghan partners our brothers you and
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i are veterans steve you know as an infantryman as a ranger the ranger creed is never will i abandon
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whenever i leave a fallen comrade to fall into the hands of the enemy and never under any
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circumstances will i embarrass my country uh well biden embarrassed us he abandoned our cohorts he
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abandoned american citizens most of those american citizens were afghans who earned their citizenship
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to blood to fighting the most vicious terrorists in the world one of the americans that we rescued was
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walked to the airport 15 times 15 times sent back and the taliban each time he had to walk through
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multiple checkpoints and was asked but he had to show his american passport and this was the guy that
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took us till almost christmas to get back home he's a business owner in san diego he was there to try
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to get his wife's visa process faster when the country fell around him and was walked to his death
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every veterans organization every organization like mine that was working to rescue afghans was
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asked by the state department to submit our excel files to them we did that this has been reported
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they took our data that i personally put in hundreds and hundreds of names and that was all handed over
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to the taliban and we know that at best 10 percent of the folks on those lists made it out of the
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country how many of them were executed how many widows and orphans did the biden administration
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create so there is no doubt that biden lied he wasn't mistaken he lied every single step of the
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way and those lies cost countless lives those lies cost countless lives and to i want to go back to
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frank's point about the wrong people coming here governor salima mazari was in bbc's top women of the year
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in 2021 the first female governor of the hazara people she personally killed over 200 taliban as a
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sniper she was an anti-taliban commander has been trying to kick down the door of the fbi i know
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they're watching your show uh so i'm hoping they go talk to her she saw haqqani network and taliban on
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her plane she knew who they were they were on the plane she went on the plane and challenged them
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why are you going to america and they said to spread jihad and it breaks my heart because not only are
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they going to hurt our countrymen but then what's going to happen is we're going to we're going to
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seal the door and weld it shut to those afghans that earned the right to be americans and their
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children to earn the right um to be in this country and they've been abandoned and they brought in very
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bad people here they brought in some of the good people they brought in some of the heroes they brought
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in some of our friends but they let in enemies of the afghan people and enemies of the american people
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uh jason how did uh how do they get to you on the vulnerable people's project people want to find
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out more about it or maybe want to donate where do they go for information i thank you steve our website
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is the great campaign.org the great campaign.org we're caring for the widows and orphans of those afghans
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who died fighting the taliban and isis we uh and we're evacuating and rescuing and resettling afghans
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every single week we have never stopped and we will not stop until every afghan ally is safe and
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we're resettling them in countries all over the world and we will never leave them
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it's a great by the way jason jones does not jason jones does not get enough shout outs for christians
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in the toughest places in the world and persecution jason jones and his organization are there
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to help them out so jason thank you very honored to have you on the show today
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thank you uh steve for sharing your your posse with us and they're the hope of a country and
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you're the hope of the world thank you thanks brother uh frank uh before here's what i don't get
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frank you just hear that from jason jones about the woman who was one of the commanders the anti
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taliban commanders she's on a plane she's pointing out these are haqqani network there's not a worse
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group in the world than the haqqani network to our allies in india and other places she's pointing
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and that's what sam fatt has fought his entire life she's pointing out guys in the plane on the
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haqqani network that we're bringing to the united states and yet the fbi can't sort this out the the
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state department and cia can't sort this out yet today you see they just kick down the doors of
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mar-a-lago and they ransack and raid a place and won't and the just part doesn't have the guts to put
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forward what the affidavit was and obviously it goes back to cross this is all going to go back
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to crossfire hurricane so frank you've dedicated your life uh as a professional at the defense
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department in other places i mean how does this feel to you today on the anniversary to know of
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how many jihadists we let in the country when they were warned by people that had fought with us
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and you see what's happened today uh down at this federal courthouse in uh in palm beach about this
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well just to pick up on the first point um i've met this governor she's a very impressive woman i mean
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she was she was teaching women to fight the taliban and did a lot of it herself as uh jason has said
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but the interesting thing is it wasn't just she saw taliban and haqqani on the plane she saw them all
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over the staging bases from which they were then moved into the united states even larger numbers than
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that particular plane full she is terrified that these people are here and are going to do exactly
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what they told her they were going to do which is wage jihad and the trouble is of course they're not
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the only ones uh you don't document every single day the numbers that are coming across our border
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um again people we have no idea who they are but we have reason to believe especially
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that huge cohort of military age unaccompanied men are coming here to do us harm and and you ask
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let's talk about the fbi steve before we get to mar-a-lago the fbi has done as best i can tell
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nothing nada zero to prevent these kinds of people whether they're haqqani or taliban or
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jihadists of other stripes or for that matter chinese or just drug cartels from disseminating
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themselves all over america now at some point somebody's going to tell them to light this place
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up and we have no idea remember what 19 people did 19 sharia supremacists did on 9-11 we're talking
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about tens of thousands of people maybe more maybe considerably more what could they do to our country
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from within to say nothing from without and as to the mar-a-lago business i i have to tell you as i
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looked at that affidavit and the black redactions for page after page after page and it made me want
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to vomit i have to tell you this this is evidence of a rot inside our country that has now so thoroughly
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penetrated the uh power ministries as they would be called in totalitarian regimes the the law
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enforcement federal bureaucracy as well as leadership i'm afraid of the fbi the justice department the
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intelligence community the department of homeland security the u.s military the irs i mean look we are
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in perilous straits and the evidence is just going to continue to accumulate i pray to god we have a
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chance to change the trajectory of this country this coming election but i'm not sanguine i must tell you
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that there will be an election given what these guys are doing and the lengths to which they're going
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to suppress us and to keep their trajectory of fundamentally transforming this country
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into something unrecognizable and horrifying to people who love our constitution and their freedoms
00:23:23.780
frank can you give your uh your coordinates right now we're going to do a special we go out we're
00:23:30.360
going to a special uh homage to the 13 heroes what how do people uh track you down for your shows and
00:23:36.520
your writings uh we've got several um secure freedom.org is our website at the center for security
00:23:44.780
policy present danger china.org is the website of our committee on the present danger china
00:23:51.240
um ctp at war.com is a really important one as well for our book about the biological warfare attack
00:24:00.080
against our country by the chinese communist party and securing america.tv is the one we use for this
00:24:06.480
program during america frank for somebody who's dedicated their life to this security of this country
00:24:11.940
and particularly the fight against global jihad um couldn't think of a better guide to help us
00:24:16.240
commemorate we're going to go out with a portrait of the 13 american heroes who gave their lives one
00:24:22.800
year ago today at the abbey gate massacre in kabul airport kabul afghanistan we'll be back in a moment
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If they can put Peter Navarro in prison, they can come for all of us.
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This is our commemoration of the one-year anniversary of the 13 heroes who gave their life for their country at the Abbey Gate in Cabo Airport.
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But also another travesty today, really another humiliation on the world stage in a federal court.
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The magistrate released, I don't even know what you would call it.
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He's running for Congress out in California, 18.
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He wrote an incredible piece about the weaponization of DOJ and the FBI.
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Pete, walk me through what you wrote this great piece.
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And then we see this thing put out today, which is just a farce.
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I mean, on the world stage, on the anniversary of our humiliation in Afghanistan, you heard Frank Gaffney says the Sharia supremacists look like, you know, the United States is submitting.
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Then we're supposed to be run by the rule of law.
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I don't even know why the magistrate put it out.
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Pete, so it's an insult to the intelligence of the public.
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And I think they're very much dependent on the disengagement and the lack of understanding of our constitutional authority.
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People don't realize you break up the rule of law, you destroy ultimately that trust, that main fiber that unifies our nation.
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If you don't have equality under the law, then all you're doing is impending on dividing our nation.
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Pete, people ask me the question all the time, you know, because I spent many years in California, absolutely love California.
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But it's changed so radically is there are folks in California or are they dialing into this type of news that they understand these intense battles are going on politically.
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Back in Washington, D.C. and in federal courts, down in places like Palm Beach and even even this populist revolt you've seen in Arizona, led by Blake Masters and Carrie Lake and Mark Fincham.
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Do they understand what's going on in the stakes of that?
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They're definitely understanding that the republic is in a balance.
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They don't understand necessarily the why, right?
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There's a lack of understanding of how these processes happen.
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And they just see the conflicting information that comes across and ultimately creates a disengaged sentiment.
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But I would say that frustration is definitely pushing them in a direction to pay attention to a candidate like me whose goal is to educate, to engage, and ultimately to revive the populist movement and restore ultimately the constitutional order of our country.
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So we talk about the populist movement, we talk about the constitutional order.
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You're saying you're running for Congress to do this.
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Because what the rest of the nation sees is Gavin Newsom has a very different philosophy of government than MAGA.
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You know, Biden was there yesterday saying we're nothing but fascist.
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This is the end of the Republican Party because you have the worst elements that, you know, the MAGA and ultra MAGA have taken over the Republican Party.
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Yet you have Gavin Newsom every day coming out with another policy decision.
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He's already running in 2024 to be the Democratic nominee.
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Is there a real shot for the populist movement?
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Is there a real shot for MAGA and the Republican Party to really stand up and make a stand against Gavin Newsom?
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At the local level, all it means is local control.
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It means we actually have, you know, autonomy and discretion and decision making.
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I would say the foolishness of the Gavin Newsoms of the world are the ones that are basically assuming that the public is going to be okay with the breakdown of our local communities.
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And they pretty much put out policies that, again, create disengagement.
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But that, by default, is creating this sentiment to understand.
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There's CRAs being established, local organizations that are saying, what do we do about it?
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I was just endorsed by the California Parents United.
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And I would say the strongest reality is the sounding board that the Gavin Newsoms of the world depend on is silence, right?
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They'd rather have silence or frustration and disengagement.
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So that way you don't have that movement start to unify and grow.
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And it's funny because even if I reflect a little bit on the time when I challenged our local public health officer as a local leader, county supervisor, the intent wasn't so much to convince my Democrat majority board.
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It was to actually get the public engaged in the conversation.
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So I challenged the guy, ultimately used my constitutional authority, told him I hold the power of the purse.
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At the end of my statement, I basically said, if you're not willing to work with us, I'm willing to use the power of the purse to ask my board to terminate your contract.
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So all I did is use my voice, use the authority that God gave me in the Constitution.
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Granted, I got pushback, but I expected that the outcome that I wanted was the public movement to start, the populist movement to start to engage.
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Tell us about your shot to win this because we need guys like you.
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Now more than ever, we need fighters like you in Congress.
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So Congressional District 18, brand new district.
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My opponent, Zoe Lockman, she's on the January 6th committee.
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Everything south of Gilroy, she doesn't know because the current district is going to expire at the end of the year.
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So if you look at the new portion of the district, it's Latino, majority Latino.
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It's rural, it's agricultural, it's middle class.
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I'm a small business owner alongside a local county supervisor.
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So I already have that understanding of our region.
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As I talk to the Latino community, including the Democrat, which I'm literally diving right in the middle of it.
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And that sentiment is getting very exciting to them because they're starting to see a person that's ready to bring them into the fold and they're ready to turn.
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It's going to basically there's a huge opportunity for us to take this back.
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We've got to win this one, and you're the guy to do it.
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Brother, give us your social media and also your website so people can find out more about you if they're so inclined to support you.
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We definitely need to get ahead of the $2 million that she already started with, which isn't a lot, I guess, in California.
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Everything's linked to that page, so it would be very easy to get a hold of me there.
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HernandezForCongress.com is an easy way to get a hold of me.
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We look forward to checking back in on the race in a couple of weeks.
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And I've got to tell you, we've got to thwart Newsom in California now.
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Can we play the Steve Cortez, Steve Bannon, Cole Open right now for Dave Walsh and Dave Bratt?
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Steve, here's why I can't, unfortunately, concur with their optimism.
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But so much of that demand was based on rock-bottom interest rates, particularly housing.
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Housing really has led the charge of the recovery in the United States since last spring.
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But housing is going to have a very hard time with interest rates moving up as violently as they have been.
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And I'm sure a lot of the audience out there, even if they watch financial markets, they probably don't watch bonds.
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But I would say to the audience, you know, you may not care about bonds, but bonds care about you.
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And I provided a chart which shows what has happened in bond yield to bond yields since Joe Biden was elected.
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Right after the election on November 3rd, bond yields bottomed, 10-year Treasury yields bottomed at about 0.7 percent.
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Incredibly low, of course, by historical standards.
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That is a massive increase for 10-year Treasury rates to more than double in a period of months and in a very violent fashion.
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And here's why I believe this is happening, Steve, and again, I'm very counter-Wall Street on this.
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I really believe if rates were to rise slowly and steadily, that would be a good thing.
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That would mean the bond market believes in growth in the United States and prices can rise.
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When it rises in this fashion, in this violent way, I believe what's going on is there is a bond market revolt right now.
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And with the bond market, think of the bond market almost as a bank.
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And they have for years said we're willing to lend to this business at rock.
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The reason I wanted to play this is that this is from 18 months ago today.
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On 26 February, the year of our Lord 2021, Steve Cortez and myself walked through in the first weeks of the illegitimate Biden regime
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exactly why their policies were going to cause an explosion on, wait for it, inflation.
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This was a called shot by this show, and we've been on it ever since 18 months ago today.
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Is your sense that this administration, this regime is doing anything to get to the core problem of inflation
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or just depending on the monetary part by the Fed?
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In the UK today, brother, they've basically admitted what you said on the show a couple of days ago
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because Nigel Farage was talking about it the other night, right, on his show, picked up on yours,
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and they said, hey, energy costs are going to go up 80%.
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Is anybody in the Biden regime trying to implement any policies to take care of the energy crisis in the United States of America,
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which is the beating heart of the inflation problem?
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They're kind of now coming to they can't do anything about inflation.
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They can't do anything about inflation as long as they're on a path to right after the SCOTUS ruling here.
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The NOx regulations, now they're pushing forward on coal-fired generation to completely end that in this country,
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pursuing, yes, the kingdom of Saudi Arabia of oil in the U.S.,
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the Permian Basin, on NOx emissions coming out of the wells there,
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and then the pipelines we've talked about the last few days,
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standing firmly with the green movement on blocking all of them.
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So, no, you can't control inflation while you concurrently make decisions to stifle the nation's energy supply.
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So, yeah, inflation is going to be out of control,
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and they're moving in the right direction of acknowledging they can't do anything about it
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as long as they're going to limit our country's energy supply.
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And then last week in an op-ed, Granholm starts talking about cutting off LNG exports.
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Well, if you want to take another step in the direction of stifling production, that's a path to take.
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If we free up the pipelines, free up fracking in places like New York,
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we can solve our energy issues, which are at the core of this inflation and recession.
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To show you the power of this show and Dave Walsh,
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because he's an executive that just cuts to the chase.
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We had him on a couple of days ago to talk about the U.K.
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He starts going through and say, hey, they ain't seen anything yet.
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Now, that's all the media is talking about over there,
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because they're looking over the other side of the hill
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or where these radical Green New Deal policies are leading them,
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They said today, I think it was Borja, in an interview, the energy, let me repeat this.
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The energy crisis in the United Kingdom is going to dwarf the financial crisis of 2008.
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Here, we're going to have this energy crisis is going to be one of the major causes of a financial collapse.
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And if we keep screwing around with this, it's only going to get worse every day,
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and you're going to get to a point that you can't pull it back,
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Let me bring in Brad from the dean of the Business School of Liberty.
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During the 1970s, as inflation climbed, the anticipation of high inflation became entrenched
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in the economic decision-making of businesses and households.
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The more inflation rose, the more people came to expect it to remain high,
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and they built that belief into wage and price decisions.
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As former Chairman Paul Volcker put it, at the height of the great inflation in 1979,
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So part of the job of returning to a more stable and more productive economy
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must be to break the grip of inflationary expectations.
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One useful insight into how actual inflation may affect expectations about its future path
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is based in the concept of rational inattention.
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We started the clip with a year and a half ago we started talking about this.
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We started using the V word early on about Volcker, about being a hawk,
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as these namby-pamby people kicked the can down the road.
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We talked about what labor has to pay for, what capital has to pay for.
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It looks like they came down the side of at least supporting labor
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and the fact that they're going to try to ring this.
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Dave Bratt did the calculation on the show two months ago.
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If Paul Volcker was there, the interest rates would be a seven and a half percent.
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It'd be a real interest rate, it'd be seven and a half percent.
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Dave Bratt, what did you think of Jay Powell's pronouncements from Jackson Hole, Wyoming today?
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Well, he said all the right things, but, you know, I'm fairly cynical on this political business cycle.
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And as soon as he said today that we're not at neutral, that's when the markets took off red.
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You can see the whole market's red down three percent across all of them today.
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So that was the first time he's acknowledged this transitory thing is done.
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We're not at neutral, which means they're going to take serious medicine going forward.
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And the big thing people got to recognize is that we do have pain.
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But I don't think he did not explain the nature of the pain.
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Our economic regime is addicted to zero percent funds rate and free money for 10 years in a row.
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That's going to take a long time to break that addiction, right?
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So all the real economy, we always talk about productivity and doing real business and all that.
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And so then you heard him go off into PhD talk on expectations, and that's real.
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So they still don't want to mention headline inflation at eight and a half, nine percent.
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So they're talking about core PCE after you strip out energy and food, which are the highest parts of the CPI.
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When he said neutral, yeah, don't skim some inside baseball.
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When he said neutral, what he's saying is no more, the signal that it's not just about rates, but it's also about juicing the system.
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No more quantitative easing, no more liquidity through the through the balance sheet of the Fed.
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He's telling him the party's over and we've taken the punch bowl.
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Basically, is that what he meant by saying neutral?
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And so yesterday when I was on your show, we were talking about, you know, all the economists are still saying, well, we're about right.
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The Fed's still got it right because they're trying to balance unemployment and inflation and whatever.
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So the unemployment, everybody knows the pain for the income distribution will be in the headlines tomorrow.
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That they're going to put a nice soft coat on this, that they're doing this for the poor, which is true.
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But it's like, finally, you finally realize what 10 percent.
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What do you mean they're doing it for the poor?
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They're screwing the poor in this country every day.
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Any person under 35 years old, you're getting hosed every day.
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50 percent of the CEOs yesterday said in a survey, we're going to start the layoffs within six months to a year.
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If you're under 35 years old, you're not you don't own anything.
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And Powell just told you, get ready to go into middle age like that.
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And here's why they haven't cut to the problem of the energy crisis in this country.
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The natural gas is going to explode up to 12 or 15 bucks.
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They're going to everybody's been cutting off their air conditioning is going to be a long, cold winter.
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Dave Walsh, is anything I said there about energy incorrect, sir, from your position as a professional?
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But until we address the core inflationary causal thing going on here, which is energy, is right now all about energy and the ability to produce more of it cost effectively, all these actions won't really take effect meaningfully until we free up.
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I mean, for example, in this delinquency issue, PG&E, ratepayers in California up 40% delinquency.
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Why is that happening in those states, in those regions?
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California's our third highest electricity cost state already because of these policies.
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Bloomberg's reporting you have a tsunami of people getting their power cut off.
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We only have 100 million households in the country.
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This is how third world countries program their energy that 15% to 18% never going to pay.
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Dave Walsh, real quickly, what's your getter so people can get you?
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The U.K. in 2005 was 70% self-sufficient on natural gas internally.
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That's why rates are going through the roof there.
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Hey, Brett, how do people get to you on Getter?
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Because I know you're putting stuff up all weekend.
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What Dave's saying, you can excuse a lot of errors when you've got $9 trillion in funny money on the Fed balance sheet and $5 trillion in fiscal stimulus.
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And now you're going to see Dave Walsh land appear on the supply side.
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The real price system and free markets are going to tell the real story.
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Look, we're going to be live tomorrow morning, 10 o'clock, go through all this.
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Every easy decision in this country is behind us.
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When the chairman of the Federal Reserve, who's so weak to begin with, uses the word pain about 50 times in his talk today from Jackson Hole.
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The question is, who's going to be on the receiving end tomorrow morning at 10 o'clock live in the war room.