June 17, 2025 • 48 mins
THE WAR ROOM WITH STEPHEN K. BANNON, JUNE 17TH, 2025
GUESTS:
JACK POSOBIEC
JOSEPH A. LAVORGNA
DAVID MALPASS
PHILLIP PATRICK
MIKE LINDELL
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Episode Transcript
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Speaker 1 (00:00):
Do it on the air, he said, quote, we know
exactly where the so called Supreme Leader is hiding. He
is an easy target, but is safe there.
Speaker 2 (00:08):
We are not.
Speaker 1 (00:08):
Going to take him out kill at least not for now.
But we don't want missile shot at civilians or American soldiers.
Our patients is wearing fin You part ways with the
President on that issue, you think you should be taken out.
Speaker 3 (00:20):
Well, what I'm going to I trust President's judgment very much.
I trust his judgment. I think for now is a
term the IATOTA should understand. In Trump world is ever changing.
So what is the President trying to do. He's letting
the IATOTA know if your attack American interest, that's the
end of you and your regime. What am I trying
(00:41):
to do? I'm trying to make the case that ending
Around's nuclear ambitions is not only good for Israel, it's
good for us and we're they're the weagest they've been
since nineteen seventy nine. This region, since nineteen seventy nine
has been a press This regime has been repressing their people,
trying to destroy Israel. Have American blood on their hands.
(01:01):
I hope it's eliminated. I would like to see this
regime fall, but I'm going to leave it up to
the President as to what to do and when to
do it. But I do know this, if we don't
take out their nuclear program now, we'll all regret it.
We're very close, be all in, mister President, and helping
Israel finish the job. And let's see where we're at
after we neutralize their nuclear program. They're in this array
(01:24):
and they're very dangerous. I don't want to underestimate the
danger of being involved in these operations, but the danger
of Iran having a nuclear weapon or surviving as a
state sponsor of terrorism is far greater than the danger
of trying to end the threat. So that's the decision
President Trump has to make, and I think he's the
(01:44):
right guy at the right time to make that decision.
But I'm hoping the sun is setting not only on
their nuclear program but the regime itself. Sooner they leave
the world stage, the better the world will be. We
can have true peace in the Mideast only if the
regime falls.
Speaker 4 (02:01):
In my view, President Trump, emerging out of the White
House's Situation Room after over an hour of deliberations with
his national security team as he's weighing how to respond
to the escalating conflict between Israel and Iran. Sources telling
CNN that the President is warming to the idea of
using American military assets to strike Iranian nuclear facilities. So
(02:22):
joining me now is someone who has spent quite a
bit of time in that very room with our presidents.
CNN senior military analyst Admiral James Stavritis joins us now,
admiralbal I'm admiral, I'm so grateful to have you here,
and this obviously is a foreign policy challenge that has
been on the table for decades. Really, what would you
be advising the president to do given the facts as
(02:46):
we as members of the public not privy to classified information,
understand them to be.
Speaker 5 (02:50):
Right now, let's go back to the situation room itself.
What the president deserves in the situation room is the
best advice. Ultimately, he's going to make the decision. We
elected him to make those kind of truly hard calls,
but he needs unfettered, unvarnished, take the bark off kind
(03:13):
of advice from his cabinet. I hope he's receiving that.
Speaker 2 (03:18):
I think he's.
Speaker 5 (03:18):
Probably got three broad courses of action here case he
won is let the Israelis continue to pound away. Another
one is put pressure on the Iranians by moving forces
into the region, sort of set the table for strikes,
but then use that leverage to get back to a negotiation.
(03:40):
That would be option two. And then option three, of course,
would be to conduct a strike. Your reporting indicates he's
leaning toward option three. I just hope he's getting all
of the advice of both the pros and the cons
of each of those three courses of action.
Speaker 1 (03:57):
Rabia would like to see the theocracy gone. I know
the Emirates would in many other Arab states as well.
But then there's the question of what happens if there
is a power vacuum there. We saw all too well
what happened in Iraq, we saw what happened in Afghanistan
when the Taliban took over and literally a matter of hours.
You've got competing factions as well, who would vibe to
(04:19):
take over Iran. On the one side, you've got the
Crown Prince Razi Polavi, who would like to go in
as an interim leader. The other side of that fence,
you've got the NCRI, the National Council for Resistance in Iran,
which used to be the m e K, which a
lot of people at Roance, would be worse than the Ayatolas.
So what steps into the vacuum if the regime falls.
Speaker 3 (04:42):
Well, I think what will happen is the Iranian people
will know freedom for the first time since nineteen seventy nine.
You know, people probably asked that about Hiller in the thirties,
What would happen in Germany if we took him out
in the mid thirties. Well, I wish we had because
we know what happened when they let him stay in power.
And here's what I can say, taking the Iotola's regime
(05:02):
down is a good thing, not a bad thing.
Speaker 2 (05:05):
And I'm willing to.
Speaker 3 (05:06):
Risk what happens next because I know what's going to
happen if they stay in power.
Speaker 4 (05:11):
But Sir, can you guarantee that can President Trump in
anything I can, can you make the commitment that this would
not lead to a longer war.
Speaker 3 (05:20):
I can guarantee you that if the Itola gets a
nuclear weapon, he will use it. I believe that with
all my heart and soul. So the men and women
who serve they're the ones going, not people answering a poll,
and if you ask them, would you be willing to
risk your life to stop the Ietola from having a
nuclear weapon, all of them would say yes because it
makes their country. Our country is safer. So we live
(05:42):
in a world where you've got to confront problems you
want to avoid World War three, learn the lessons from
World War two. People in World War two appeased Hitler
to the point that it got so much out of hand.
We had a world war and sixty million people got killed.
So we live in a world where you pay now
or you pay life. Let's stop this threat before he
gets a nuclear weapon. Let's end this reign of terror.
(06:05):
Let's do it now. It's not going to take twenty months.
But I can't guarantee you your freedom and your safety
unless we're willing to.
Speaker 2 (06:12):
Fight for it.
Speaker 3 (06:12):
I can guarantee you this. If we don't fight for
our freedom, we will lose it.
Speaker 6 (06:18):
This is the primal scream of a dying regie. Pray
for our enemies, because we're going to medieval.
Speaker 7 (06:26):
On these people.
Speaker 6 (06:28):
There's not got a free shot. All these networks lying
about the people, the people have had a belly full
of it. I know you don't like gearing that. I
know you try to do everything in the world to
stop that, but you're not going to stop it. It's
going to happen.
Speaker 8 (06:40):
And where do people like that go to share the
big line?
Speaker 6 (06:43):
Mega media?
Speaker 3 (06:45):
I wish in my soul, I wish that any of
these people had a conscience.
Speaker 6 (06:50):
Ask yourself, what is my task and what is my purpose?
Speaker 9 (06:54):
If that answer is to save my country, this country will.
Speaker 6 (06:59):
Be say war Room.
Speaker 7 (07:01):
Here's your host, Stephen K.
Speaker 8 (07:03):
Bath.
Speaker 6 (07:08):
Tuesday, seventeen June. You're of a Lord, twenty twenty five.
Obviously a very action packed afternoon, and we're packed this afternoon.
We had a show lined up we were going to
do talk about a lot of finance and the good
things that are coming out of President Trump's administration economically.
We've got a couple of Treasury officials from the World Bank,
Philip Patrick, all that. We're going to get that in.
(07:29):
But we obviously got to talk about what happened the
National Security Council today. President Trump came back from Calgary.
I think partially he was bored. Number two. He had
to get back to deal with the situation at hand.
They did go through alternatives. It's pretty obvious at least
one alternative is to consider strike, at least some sort
(07:49):
of strike, because they're pre positioning massive assets in the region,
both naval assets and air assets, both support logistics assets,
it's and also combat aircraft. That has to be viewed
as at least negotiating leverage. If President Trump is to
is to try to force the hand, which looks like
(08:11):
it's either between a full capitulation on the nuclear program
or maybe even regime change, as this seems to be
changing every minute. Let's go to Jack Basobic. Jack, you're
gonna be on Tim Poole tonight, is that correct? People
can see you on the Tim Poole Show.
Speaker 8 (08:27):
That's right, Steven to the warm boss s. I'll be
on Tim Pool in a couple hours tonight. So we'll
we'll be covering all of this live, We'll be taking
super chats, we'll be doing all of it right there.
We're tracting all of this in real time as.
Speaker 6 (08:38):
Well, so Jack. Obviously, Then the range of alternatives President
Trump's looked at is his current position is, hey, they
can I mean, his constant position is they cannot have
a nuclear weapon. I've told him they can't have a
nuclear weapon. He's tried to negotiate. They kind of try
to tap him along. He wasn't prepared to be tapped along.
The Israelis did what they did. Now we are where
(09:01):
we are looks like the range of alternatives today, Jack
clearly has at least, I mean, you can just tell
from the outside action. They haven't released any statement, but
clearly a lot of assets are being moved around. We
had Admiral stav Ritas there in the cold open saying
that's to give him a range of alternatives. Admiral stav
(09:22):
Ritas is correct. This is what he's trying to do
is have options, to have what we call optionality. Jack,
give us your assessment of the options you think are
out there.
Speaker 8 (09:34):
We'll see if I think there are a number of options. Obviously,
these range from the United States military being ordered to
take runs at the political leadership or even the energy
or infrastructure of Iran, all of which are capable, all
of which are reachable from our air bases throughout the goals,
(09:54):
including Prince Alton Air Base in Saudi Arabia. There's stealth,
there's multi role fighters there at thirty five sixteen F
twenty twos. There's also the bombers to the fifty twos
down at Diego, Garcia. And of course there's been a
lot of talk about the United States coming in and
having the weaponry and the firepower to take out this
underground base over at four dough which is built for
(10:16):
this purpose. Because Israel does not have the bunker busting
bombs or the mops. These gb used these gravity bombs,
which the israelities do not have, but the United States
certainly does. This is why they were built for this purpose,
and of course it was also what the bomb was
designed to do. This is part of the escalatory ladder
and the tit for tet that we've seen in the
(10:37):
directing world, that's hardening world that the ir Adiance and
some of these places up there. This is why Iron
has their shots shot drones underground for example, and all
these other various facilities, and so these options are all
available to the United States. There's also a range of
options from intelligent sharing to asymmetric warfare, so intelligent sharing,
(10:59):
shutting down electronics, going after their communications, going after their media.
There's also a huge range that can be done there
as well, and it really all remains to President Trump
what he wants to order happened here. We're waiting to
hear that readout from the National Security Council meeting which
was told and it just a little while ago at
the White House.
Speaker 6 (11:20):
Jack walk people through what the gravity of bomb exactly.
The mechanism hasn't actually work. It's kind of unique, and
this is why people are saying, well, maybe you put
it on a you know, a C four, if you
put it on a big one of our big transport
aircraft and have the Israelis pushed out the back, or
you put it on an Israeli aircraft. Walk me through
(11:41):
what do we have here and why the size of
ours are are much bigger than there is correct, yes.
Speaker 8 (11:47):
Yes much. Russia has been much larger. Russia has been
using a version of this technology in Ukraine for quite
some time now. And essentially what the Russians are using
for with a smaller version of it is it What
it does is it turns your It turns your use
the parlance, you earned your dumb bombs into smart bombs
because you're up What you're doing is you're able to
(12:07):
upgrade them to a point where they have a rudimentary
type of guidance which is far more far superior simply
just dropping it away, you know, bombs away as as
as we know. And so they're carrying that, you know,
a guidance system, they're monitored, it's controlled externally guided bomb,
you know, depending on the given weight, that's how much
explosives that it has on it has radio and this
(12:29):
this technology has been around for quite some time, but
it's really been plugged up through World War Two and
then even after throughout the Cold War where they've been used.
And it's only been in the Gulf War, the Ukraine
War and on that we've seen them really use now.
And so this is it's it's sort of in the
way that I think of it as it is it
precision guided munitions. It is it is not quite precision
(12:52):
guided mission munition, but it is a it is a
guided bomb, is the best way to think about it.
Speaker 6 (12:59):
The difference between taking out the nuclear program and making
sure they have no capacity to refine material and also
even maybe some of the ballistic missile technology they need
versus regime change, give me a minute on that.
Speaker 8 (13:12):
Before you go to break well, Steve, this could be everything.
So taking out President Trump has been very clear that
he is against Iran's nuclear weapons program. But Iran's regime
depends on far more than just that program. They had,
the IRGC, they have, the Iranian army, they've got, and
of course all of the oil pipelines and the deals
that they have with the Chinese Communist Party. That's really
(13:35):
where that power relies upon. You take out the regime,
and that's going to open up a whole hornet's death,
possibly civil war. This is bigger than Iraq, bigger than Afghanistan,
bigger than Syria, bigger than Libya.
Speaker 6 (13:47):
The shocking thing, though, I think, for a military point
of view, is that, given all their bluster, the Israelis
did take a complete air supremacy. Air superiority first, and
air supremacy. So far, it doesn't seem like there's any
you know, combat aircraft up or the combat aircraft gets up.
Their air defence's systems got destroyed about ninety days ago.
(14:09):
But right now, don't I think in President Trump, of
course you use the Royal we we we have control
of the airspace over Tehran. Right that's never really a
good sign. All of a sudden, you're you're in it.
I tell you what, Jack, and you hang on a minute.
I know you're hanging out, going out to temple. We're
taking a short commercial break. Jack Pasopic is with us.
We're gonna have Joe Lavogna on Special Counselor of the
(14:33):
Secretary of Treasury. Big breaking news at a Treasury Day
about the impact of President Trump's economic program. How about
the economic program on you take your phone out text
Bannon b A N N O N at nine eight
nine eight nine eight Get the ultimate guide. It's free
to investing in gold in special in investing and gold
(14:56):
in the Age of Trump. Back in a moment, here's
your host, Stephen K.
Speaker 3 (15:02):
Bath.
Speaker 6 (15:06):
Welcome back. Joe Lavorgnier is going to join us from
the White House Special Assistant or Special council to Secretary Treasury.
I want to make sure because I have some economic
guys on here. Next Jack Bosobic talking about the economy,
talking about you know, I got a guy from you know,
the formerhead of the World Bank and one of the
under secretaries under President Trump in the first term, Philip
(15:28):
Patrick's going to join us. Obviously, gold is kind of
on fire now, but also there there there are many economics,
not just geopolitical economic Iran is one of the most
important oil and gas producers in the world. They they
provide I think Jack, you would agree that Chinese commis
party anywhere between one point five and two and a
(15:50):
half million barrels per day, either sold directly or through
the black market. They're the principal provider to the CCP
of energy. Those oil fields and there's discussion of the
oil fields may come into play. I think Cutter and
other nations around the world own. I think the oil
fields that kind of go in Bajra, that's part of
us in Iraq. Part of it's in Iran. Of course
that part down by Bajra since it's tons of Sheite Muslims.
(16:15):
Ever since the Iraq War, they kind of claim it
for their own. How big a deal is the geoeconomics
here of of the situation in Iran.
Speaker 8 (16:25):
Well, Steve, the idea of the geoeconomics is key. And
you know we say on human events daily all the
time that when it comes to geopolitics, it's sort of
like you know, the French have a phrase them, you know,
whenever you're trying to figure out something, look for the
look for the woman. Well, in geopolitics we say petrol,
look for the petrol, look for the oil and so
(16:46):
in this right petrol, you don't feel that from me, man,
and that's all me.
Speaker 6 (16:53):
I'm gonna do it as an homage, all right, soodok
ob be.
Speaker 8 (17:00):
You know that's that's one of the fastest ways that
could lead to this regime change, civil war kind of
breakout that we're talking about. But if you want to
talk about the global oil market impact of a massive
sudden supply shock, we're talking immediate. You know, depending on
the broader market conditions. You're talking one hundred dollars barrel oil,
one hundred and fifty dollars barrow futures market, you're going
(17:21):
to get immediate reaction, huge voluntility stocks, commodities, and you
know what, you're not sure what's going to happen. What
OPEC decides to Does OPEK want to cut does OPEK
want to keep flooding the system? The US EU, that's
going to be a lot of pressure then to release
oil from strategic reserves. Of course we're Trump's been trying
to fill by the way, our strategic oil reserve. But
here here we are in you know, summer just started
(17:44):
and you might be seeing six dollars bar oil.
Speaker 6 (17:47):
Or or get our guys or get our guys ripping
and even pumping more Jack social media, you're putting them
great stuff all the time. You're going to tympole You
on the Tempole Show tonight. What is that? Is that
start at eight o'clock Eastern daylight time, the Tim Poole Show.
Speaker 8 (18:02):
So that'll start at eight the ones. You're done watching
all your evening war room, you have your dinner and
then boom you lock in with Tim Kass eight.
Speaker 6 (18:08):
Pmmeter, hang on, I'm gonna try to get you from
Tim's Tim's place at seven when you get out there,
so if we get enough there, we'll come right to you. Okay,
thank you, brother, Thank you the great Jack Pisobic. I
want to go now to the White House. Joe Lavournier,
Special Counsel to the to the Secretary of Treasury, Sir.
(18:30):
Today Scott Besson had an interview would put up an
interview with Maranda Devine. He talked about the increase in
blue collar wages. It's awesome analysis you've done. Can you
walk us through exactly, give us the receipts, give us
the backup, what's actually happening, and more importantly, why is
it happening.
Speaker 10 (18:47):
Sure, So, Steve, the if you look at the President Trump,
it's the first term and second term. What we looked
at when I worked for President Trump in the first
term is blue what we call blue collar wages, which
are non super visory production workers. These aren't people that
are part of the professional managerial class. It's not Wall Street,
it's main Street. It's the backbone of Main Street.
Speaker 11 (19:08):
And what we've.
Speaker 10 (19:09):
Noticed in this first five months of this Trump administration
is that the annualized increase and real blue collar wages
is almost two percent. The next closest growth we had
of that magnitude in the first five months of administration
was Trump one point zero. So it's remarkable the wage
gains he's has. And that's a function really of a
(19:29):
very pro growth, supply side led set of policies where
food and energy costs have been trending down significantly from
where they were, and as Secretary Besson has said, as
there are fewer illegal workers that are artificially depressing wages
keeping nominal wages high, so you have a double whanne
of falling inflation. The inflation numbers have been absolutely stellar.
At the same time nominal wages have been strong, So
(19:51):
your real wages are expanding, increasing purchasing power for the
everyday worker.
Speaker 6 (19:58):
I want to go back because we did this before
in the in the tax cut in seventeen, and it
came to fruition in eighteen and really in nineteen that
I think it was the fall in nineteen you had
the tremendous gains in blue collar versus white collar, non
college graduate versus college graduates. Is that essentially the same
thing here. We haven't got to the extension of those
taxes are still there, But is that what's going on?
(20:21):
Is it anything about the investment in jobs coming back?
I know a big part of this has got to
be an immigration. What do you think is actually the
big drivers here in back of this?
Speaker 10 (20:30):
So you're correct if you look at the big effects
obviously with TICHA was in eighteen and nineteen. If just
to put it in broader sense, from seventeen to nineteen,
those first three Trump years, real media and household income
was up almost eight thousand dollars, more than double what
had been in the prior sixteen years of both Republican
and Democrat administrations. Wow. In the One Big Beautiful bill,
(20:53):
the tax expensing, the likelihood that we get well, we
got one hundred percent expensing on capex back to President
Trump inauguration day, combined with the deduction of plant equipment factories,
that is hugely supply side generative. And what that means, Steve,
is that you're going to get strong productivity growth because
you've got capital deepening. You're giving workers more tools to
(21:15):
produce the goods and services that people want. If you
have higher productivity, you have higher living standards, you have
higher wages. So this bill, once it passes, will codify
and further implement what was built off of Trump one
point zero. And I'm optimistic we'll get faster growth, will grower, deficit,
will grow deficit so that they will fall relative to GDP,
and most importantly, Main Street will thrive. I mean, that's
(21:37):
the way the theory is supposed to work.
Speaker 2 (21:39):
It's the way it worked in.
Speaker 10 (21:40):
Trump one point zero and by all indications, were off
to a great start so far in twenty five.
Speaker 6 (21:46):
Great start. And this shows why the immigration policy seal
on the border, in the mass deportation at the beginning,
that has all worked out. And remember President Trump's focus
and this comes malpass was in the first administration. Scott
Bessett now is Secretary Treasury. Everybody's focused on the working class,
the middle class from main street in a supply side
tax cut, and also to make sure that everything we
(22:07):
can do to increase productivity is there. As Dave Brett
is often there warning us Joe real quickly, what are
you doing? You're one of the great gats inside Treasury.
You've got an incredible team over there. What is your titland?
What are you doing for the secretary every day?
Speaker 2 (22:24):
Well, this is my tenth day.
Speaker 10 (22:27):
So I come from Wall Street and I had the
pleasure of getting to meet know the Secretary a little
bit in my prior private life. I'm helping out in
anything they really they want me to do, Steve, all
things sort of macroeconomics and policy related. And it's been
ten days but it's been fun and hoping I get
to come on with you again and I'll have been
(22:47):
better news to report the next time I'm on.
Speaker 6 (22:50):
Well, it's pretty good news today, Joe. Thank you so much. Joe.
Do you have social media? Where do people go to
find out more about your work? And which you do?
Put this up so people lowick.
Speaker 10 (23:00):
Yeah, on my private role, it was at Lavornyanomics. We'll
see if we can make it an official government role.
But you've probably see me a little bit more maybe
on TV and radio than social media. But we've got
to we've got to fine tune that.
Speaker 6 (23:13):
Thank you brother, look forward to get all your all
this up on social media. Joe Lavorgnier, thank you over there,
one of the team that Scott Beston's pulling together. Really
good news. So Malpass before you you you've got some
observations about the FED, as you often do, David, you
were one of the big, one of the big guns
for President Trump in the first term over Treasury. Then
you head of the World Bank. First off, just how
(23:36):
concerned are you about particularly as this thing starts to
spread in Iran and whatever can happen sabotage. They had
a thing today that there was a vessel stuck in
the mouth of the Straits or horror moves, and I
can tell you having a sailed in and out there
on a destroyers, it's not that big. How concerned are
you for global economics of what's going on in Persia
(23:57):
right now?
Speaker 2 (23:59):
Of course concerned, But the US is powerful and President
Trump has been really clear that's peace through strength. And
also they can't have a nuclear weapon, so there are
exit you know, there's ways, exit ramps that they can use,
and if not, then I think there is power to
control the situation. I think we should really make a
(24:20):
distinction between that meaning necessary steps to control bad outcomes,
that's peace through strength, and then turn to allowing a
free market economy in the US to really expand. And
so in my mind there's kind of a connection. There
(24:41):
is a connection to the Trump plan. The program is
to have the economy be really strong so that we
have enough strength in the US especially, but globally to
really see peace breakout. And he's been clear.
Speaker 6 (25:00):
David President's been pretty critical of pow Over at the Fed.
Wall Street Journal's got a piece. What is your take?
You're somebody the President would always turn to and ask
about these situations. What do you think about the FED
and interest rates? Are they ahead of the curve or
behind the curve?
Speaker 10 (25:15):
Sir?
Speaker 2 (25:17):
They're behind the curve, and they're often behind the curve
and we go from inflation to deflation because they're driving
through the rear view mirror. Their models are really antiquated.
These are forty fifty year old models. That basically say
the US economy can't grow too faster, it'll be inflationary,
and that's just wrong. There's productivity growth. You just heard
(25:40):
Joel Lavornia talking about that as the major strategy. If
we can get manufacturing going in the US and a
small business is really cranking, then it's not going to
be an inflationary economy. It's going to be a growth economy.
So that's within reach. There is this clear PA path.
(26:00):
The data is, you know, is clear that there's room
for the FED to cut. That's the retail sales that
were negative today, the job growth in May, in the
household survey was weak. We've got the prime rate at
seven percent? What are you going to do with that?
And why is that where the US is sitting? So
(26:21):
I think if the FED is clear and Trump has
been that we defend the dollar, we have the dollar
as the reserve currency. If the world believes that they'll
beat a path to our door in terms of buying
buying US debt dollar denominated debt and driving down interustrates,
I think that's within.
Speaker 6 (26:42):
Hang for one second because I want to go back
over this, and I got a couple of the questions.
Philip Patrick from Virgin golds All's going to join us.
Got David Maupass from ahead of the World Bank in
the Worl room. Short commercial break, use your Stephen K.
Ban So brother mountpess And by the way, David was
(27:08):
under Secretary for International one of the most important jobs
in the Treasury Department for President Trump in the first term,
and then head of the World Bank put there by
President Trump. David when you just said the models that
the FED uses, because President Trump, let's be blunt, He's
not particularly happy with Lewis Powell. He's kind of all
over the FED. He keeps saying they're missing the window
(27:28):
here when you say the models are forty years old, clunky.
Doesn't the FED Reserve, I don't know, have like eight
thousand people over there. It's a huge organization, is it not.
Speaker 2 (27:38):
That that's right? Maybe seven hundred, I don't know. PhDs
dumb and dumber. But the Phillips curve is the idea
that there's somehow a tradeoff between unemployment and inflation and
you have to have hire one to get lower the other.
And that is you know, the So the FED is
constantly talking about his mandate that it's supposed to have
(28:00):
price stability and full employment, and somehow those are in opposition.
They work totally together. If you have price stability, you'll
have more jobs in the economy. That's that's what Trump
is talking about, That's what Scott Beson is talking about today,
even of how how do you get real wages up
(28:22):
if the FED is always leaning against it. This is
because you know, if you think about the last forty years,
there's been innovation everywhere except that the Fed. They're still
talking about monetorism, which is ages old, and they're not.
And remember, the FED not only sets interest rates, but
they also regulate banks, and they do it poorly because
(28:46):
they fail and the small businesses can't get credit. And
the FED has this giant balance sheet that's been horribly managed.
They bought nine trillion dollars of US government bonds at
the very trough when yields were the lowest, so they've
got this unrealized loss on their books of maybe a
(29:07):
trillion dollars. So it's just mistakes all around. Old models.
Speaker 6 (29:13):
The last thing you said about us being the prime
reserve currency, we actually are very focused on the rear reset.
We've done a whole special of this We've got a
whole thing we've done in the last couple of years
called the End of the Dollar Empire. We put it
out an installments. We got the seventh installment about the
rear reset. Walk me through what you said in the
last minute of the previous segment about making sure that
(29:36):
there's demand for dollar denominated bonds and that we remain
the prime reserve currency, sir.
Speaker 2 (29:42):
Even today you saw Europe saying they want to have
more room for the Euro on people's shelf space. Well,
that is not really the way to have the world
be safe. You need the dollar to be the backbone.
And that's also important for crypto and digitalization of the
world economy. If you look at stable coins, they need
(30:03):
to be in the US dollars and regulated by the US,
not by some island. I don't know your view on that, Steven.
People can have different views, but I really think that
we can allow and permit this innovation that is the
core of the US economy. All that has to happen
(30:25):
is Treasury and the Fed say they plan to have
the dollar be the core of the global economy for
decades and decades. That would bring down interest rates right there.
If they would say it, but the PhD economists all
think that the currencies should just float around with no
anchor at all. I think that can be fixed pretty easily.
Speaker 6 (30:47):
David Malpass. We hope to have you on here a lot.
Where do people get you on social media where they go.
Speaker 2 (30:54):
On Twitter or x at David R. Mouthpass.
Speaker 6 (30:59):
Thanks Steve Brother, thank you, thank you for coming on.
Look forward to having you back. I think one of
the things we're gonna do is this clearly this conflict
between Israel and Iran, and we're picking up to see
an and just report that the Okay, maybe that was
a false thing.
Speaker 11 (31:16):
I don't want to.
Speaker 6 (31:18):
Okay, Christy Noam is Christie Noam. We'll get more of it.
But the Secretary of Homeland Security has been taken I
think to a local Washington hospital and ambulance. We don't
know anything more than that. As soon as we know more,
we will report it. Philip Patrick, one of my favorite people.
You had Malpash right there saying what we needed to
do to make sure that we remained the prime reserve currency,
(31:40):
our favorite as you as you know, the The Financial
Times of London had this article right about about gold.
If Denver could put it up. I want to make
sure it's up. Got Philip Patrick on it. It starts
with it starts with one of my favorite quotes, Phillips,
and the headline is amazing. As you know, Philip, we've
(32:01):
been working together for four years now, over four years,
and we talked about doing the end of the Dollar
Empire to make sure people understood the importance of the
dollar as the prime reserve currency and how that was
so important. And then what backed that up now the
Financial Times of London that they does this big story
how gold became the world's refuge from uncertainty, which is
(32:24):
kind of the thesis that we've been talking about for
four years. The sub headline in an error where core
assumptions about the global economy are being questioned. Gold has
once more become an anchor, especially for central banks, as
you've reported for four years here. But the lead paragraph though,
talks about one of my favorite quotes is by John
(32:44):
Maynard Keynes, who was the economist that really after the war,
after World War One, they all kind of you went
into Keynesianism, which hadn't been really grasped before, which meant
bigger government's, bigger government, stimuluts, which we're living through that too.
Want to have tree and dollar two treeon dollar deficits
here the year. We say that is a Keynesian stimulus
(33:06):
to an economy, and Kines called gold a barbarous relic
of an ancient world. Sir, So what break down the
financial times and really the financial times coming to understand
what we've been kind of laying at for this audience
for four years, sir.
Speaker 9 (33:25):
Yeah, Look, I mean, as you say, we've been talking
about this for a long time. First of all, we can,
I think, clearly show that John Maynard Keynes was incorrect
calling gold a barbarous relic. Seeing gold this century outperform
almost every other asset class, I.
Speaker 7 (33:41):
Think it's very clear. But I thought a very good article.
Speaker 9 (33:44):
It was summarizing a lot of what we've talked about
over as you said, the last few years, and that
is slowly we are disincentivizing the world to hold our dollars.
Right after nineteen forty six, what incentivized the world to
use dollars was redeemability. Right It was the only currency
in the world that central banks could hand into the
(34:06):
Treasury Department and get gold back in return. Following seventy one,
it was the Petro dollar agreement. Right, the world had
to use dollars to buy oil. Forty percent of the
world's oil supply came from Opek. It guaranteed this demand.
Speaker 2 (34:19):
Right.
Speaker 7 (34:20):
Since then, it's really been stability.
Speaker 9 (34:22):
Right, The dollar, as far as currencies go, has been
the most stable. All of that being said, the world
has been incentivized to hold our US dollar. Well, what
have we seen really since the Biden administration. Right, We've
seen devaluation of currency. We've seen weaponization of our currency.
Central banks around the world are looking at dollars now
(34:44):
more as a liability. There's an asset. Even Trump's policies. Listen,
Trump's been trying to thread the needle. Things like tariffs.
They tell nations around the world. Look, we understand why
he implemented them. We have to boost domestic manufacturing. But
tariffs have negative impacts as well. They force countries to
diversify away from our currency, even the big beautiful bill. Right,
(35:09):
Trump was elected with a mandate, I said to you
before I'm torn on this, Right, you know, he was
elected with a clear mandate to shore.
Speaker 7 (35:16):
Up the borders.
Speaker 9 (35:17):
This stuff is expensive, but it comes with consequences, Right,
That is an explosion in deficits, Right, the dollar again
less attractive to foreign investors. What about the revenge tax
within the big beautiful bill?
Speaker 7 (35:31):
Right?
Speaker 9 (35:31):
The Financial Times reference that specifically. I understand why Trump
has it in there, Right, it's one more weapon that
Trump can use to balance global trade. But I also
understand that as a foreign investor, right, that's a concerning
thing for me. So my concern now is not that
we lose global reserve currency status, but that we move
(35:52):
into a more multipolar world. Right, are the currencies being used,
demand for the dollar waning longer term? Longer term that
can put our position as global reserve currency under threat. So,
you know, we've been talking about this for a long time.
I think Biden put President Trump into a corner. We're
trying to fight our way out, but it's a very,
(36:13):
very tough bat.
Speaker 6 (36:15):
What's the hardest thing he has to do? Because I'm
gonna expand the conversation to talk about this current war
that's going on, and particularly if it expands. But as
you sit here today with all the policy levers President
Trump is trying to do, and you just heard Joe
Lavarnier from Treasury talk about some good news we're hearing
at the get go right, particularly about blue collar wages.
What is the hardest thing you think President Trump and
(36:38):
bestn't have to do to thread the needle.
Speaker 7 (36:42):
It's it's such a it's a very tough question.
Speaker 9 (36:46):
If I had the answer to that, I may be
sitting next to.
Speaker 6 (36:49):
Both of them. Hold it. We had the answer, Philip,
Patrick and Steeve, I wouldn't be doing this. Philip wouldn't
be there. We'd have we'd have the Patrick Bannon hedge fire.
Speaker 9 (37:00):
There's no question about it. Look, I think it's all
about creating incentives. And this is where politics and economics cross.
If you ask me, as an economist what we have
to do, the answer is not politically viable.
Speaker 10 (37:14):
Right.
Speaker 9 (37:15):
What we have to do really is curb spending. We
have to sort of generate more revenue. We've got to
tighten the belt buckle. Ultimately, that's the way to do it.
President Trump's strategy is a riskier one, right, and that
is to grow the economy and to do it at
a rapid rate, faster than debt. But I don't envy
President Trump's position. I've said before, if I left with
(37:36):
his legacy in twenty twenty I wouldn't be back again
because this is a much more difficult fight he has
in front of him. But he's got to balance things
in a way that I think is going to be
difficult to do. But he's got to incentivize Listen, I
thought the trade deal he struck with the United Kingdom was.
Speaker 7 (37:52):
Genius, right.
Speaker 9 (37:53):
That was a way to sort of work China out
of crucial supply chains whilst sort of maintaining good relationships
with our European counterparts. I think that should be the
blueprint for any future trade deals.
Speaker 7 (38:06):
So it's a tough one.
Speaker 9 (38:09):
I think curving deficit spending is going to be key,
Trying to get a handle on the debt's going to
be key, and growing the economy is going to be key.
But we're in a very tough position. Look, it wouldn't
surprise me and you and I have said this for
a long time. Twenty years from now people take an
economics course, there's going to be discussions about the sixty
year experiment from nineteen seventy to twenty thirty with a
(38:30):
global free floating unpacked currencies and how it failed. Right,
And I think ultimately that is the biggest problem. This
is how every empire in history is collapsed and we're
heading down that path.
Speaker 6 (38:44):
Let's go back to that because the Financial Times talks
about that too, and talking Aboutcains that there was a
system in place really from the post war period given
the devastation. Remember they didn't have a system in place really,
you know, from World War One to the Second World War?
Is that people forget it wasn't just World War One
(39:04):
that caused World War II. Caines came to prominence because
he wrote a book about the Versailles Treaty and he
called it The Economic Consequences of the Peace, where he
kind of forecasted that, hey, there's some bast things going
to come, particularly about reparations and debt in Germany and
some of these countries not being able to pay this off,
(39:25):
that maybe the terms were too tough and people didn't
listen to him. And of course it was when people
asked about how Hitler came to power. Hitler came to
power because of hyperinflation in the Weimar Republic. It really
destroyed the currency. And when you destroy person, when you
destroy a country's currency, you really destroyed the fabric of
the country, do you not, Philip Patrick.
Speaker 9 (39:48):
Yeah, absolutely. I don't think any historian disagrees with that position. Today,
the Treaty of Basai put the German people in dire strait,
and desperate people do desperate things.
Speaker 6 (40:00):
I question about that, Philip, Can you hang over a second.
I want to hold you for another block. I get
some of the questions I asked you about the current situation,
particularly as President Trump goes through and looks through a
various alternatives to deal with this situation in Persia. I
don't know if we're going to hear from the President
or not tonight or not, maybe even a press avail,
(40:23):
et cetera. A lot of rumors going around. We're going
to try to track them all down. Short commercial break.
You got Philip Patrick or Birch Gold. Just take your
phone out right now, text Bean and b A. N.
N Owen at nine eight nine eight ninet eight. Get
the Ultimate Guide for investing in Gold and Precious Metals
in the Age, not the era, the Age of Trump.
(40:44):
It is pretty straightforward. It gives you access to Philip
Patrick's team of Birch Gold. Short commercial break, Philip Patrick.
On the other side, we really let us take down
four Room. Use your host Stephen K. Bas Okay, Philip Patrick,
(41:08):
the geopolitical concern flight to quality, we've had, you know,
it's about volatility, it's about safe havens. There's all kinds
of rumor tonight that President Trump may come and address
the nation. We have not heard anything official, right. We
know that people are reviewing a range of alternatives, including
continue on negotiations, but give them a playme or tradeing now.
(41:32):
But if this continues down the path, and clearly Israel
is going to keep pounding the Persians, and the Persians
going to pound back. How and if the oil assets
and resources get hit down there by Bajra and those
massive fields down there, what's your sense of where this
could head as far as financial markets in particularly gold.
Speaker 9 (41:54):
Look, I think it's in our interest for President Trump
to try and end this as quickly as Possiblebviously some
of it, a lot of it's out of its control.
But the longer this goes on, the worst it is
for global financial markets. We saw an immediate response, obviously
from energy markets. We saw a seven and a half
percent spike in oil prices last Friday on the back
(42:15):
of that. Obviously, gold the traditional safe haven when US
treasuries are not spiked as well. It drove up one
and a half percent on the back of that news alone.
From a broader economic perspective, regional instability adds to fuel
the existing inflation that's happening here in the United States
and around the world, and it comes at a time
(42:36):
when major economies are already strained. Right, Europe's in recession,
China's growth is spluttering, and our own GDP in the
first quarter was negative zero point three percent. So I
would say geopolitical shocks like this, they don't create an
economic crisis, but they put pressure on financial system and
make the craps worse at a time when we really
(42:57):
can't afford to So this isn't welcome used domestically for
the economy. But I don't see where this goes. We've
had sanctions on Iran since the nineteen seventies. They don't
appear to be stopping them pursuing a new clear weapon.
Speaker 7 (43:11):
I don't know.
Speaker 9 (43:12):
Again, geopolitics is not my forte. From an economic standpoint,
We've got to end this as quickly as possible, otherwise
it's going to be the catalyst for the Fed to
keep interest rates where they are. That's the last thing
we need from a debt standpoint and from a growth
standpoint in.
Speaker 6 (43:28):
An era of future instability. And you just mentioned that, Hey,
people are going to study from nineteen seventy one to
twenty thirty when you kind of had this floating, you
had fiat currencies out there right without anything really backing
it up. In the article they talk about central banks
have had this kind of fascination with gold here recently,
and that's one of the reasons that the price of gold,
(43:49):
it's one that we told people, it's not the price,
it's the process. You got to learn at what's in
back of it. That's been very strong demand by central banks,
and we got the Bricks Nations. In fact, you guys
will be down there reporting from down there in Rio
for the real reset. What is your anticipation of the
appetite of the central banks to continue to purchase gold
at kind of the rates that they've been purchasing it
(44:11):
in the last couple of years.
Speaker 9 (44:13):
I mean, look, the trajectory is not letting up. Gold
buying is increasing. The biggest single quarter in world history
was the fourth quarter of twenty twenty four. We saw
a slight tail off first quarter of this year, but
The trend generally is increasing, and I think it'll continue
to increase. We have to remember the traditional safe haven
asset was US government debt treasury.
Speaker 7 (44:34):
Specifically, what we are.
Speaker 9 (44:36):
Seeing now is demand for that debt is waning. Right,
the FED lowered interest rates on load interest rates Boring
rates on the tenure went up seventy basis points on
the thirty year one hundred basis points, which is concerning.
So I am of the belief that trend will continue
(44:56):
and until another currency appears. Right, there is not a
current see better than the dollar today outside of gold.
Until that appears, I think central banks will continue increasing
gold hold things. Let's not forget gold overtook the euro
as the number two global reserve our set last year.
My feeling is those trends continue.
Speaker 6 (45:17):
Well, Philip, how do people start to work with your team?
How do they start to work with your team? Where
do they go?
Speaker 9 (45:25):
Of course, so very simple information is big for us
as it is for you. So Birch goold dot com forward,
slash spannon or text bannon to nine eight nine eight
nine eight, either one that will get them access to
free information kits how and wider by precious metals today
and importantly the installments of the end of the dollar empire.
(45:47):
So Birch Gold dot com forward slash Spannon, they can
reach me personally on geta at Philippatrick.
Speaker 6 (45:57):
And people just remember that we don't get into it
a lot, but Birch Gold's got all kinds of methodologies
and mechanism for one k's iras tax deferred all of it.
Get into the details with them. We've partnered with these
guys for four years now. It's been a great partnership
because what we decided to do at the beginning is
do something different and give people information. So they understood
(46:18):
the dollar, they understood currency, they understood what the primary
serve currency is. They understood gold and how important gold
really is in the system, whereas a lot of people
dismiss it, and as Philip said, it's had a better
run in this century than any asset. Pretty it's not
what gold's really set up to do or done historically,
but hey, you never know, Philip Patrick, you guys a
are Birch Gold are terrific, and thank you for taking
(46:39):
care of everybody.
Speaker 7 (46:41):
Thank you for having me. Steve good to see.
Speaker 6 (46:43):
You're really if you get in with his team over there.
It would be a very good experience. Birch Gold dot com.
Go check it out today. Put promo code Bannon in
there and you get all the free access to the information.
Mike Lindell, did you win or did you lose? A
mainstream told me you lost. I'm hearing from the from
(47:03):
the alternative media asked that you won. What is it?
Speaker 11 (47:07):
It's a big win. Everybody, my pill one hundred percent
innocent and Dick, we got completely validated that we did.
Speaker 2 (47:15):
Nothing wrong, never did anything wrong.
Speaker 11 (47:17):
And I want to tell you, Steve, the other part
that the mainstream media is telling you these all this
my statements. They said there's three of them that I made.
Realized they were all after I was attacked. It's like
being in jail and you bad mouth the guard you're
and you're in jail and you weren't supposed to be there.
Speaker 6 (47:35):
They sued me first.
Speaker 11 (47:37):
Before I did anything. And you know what, it's the
same team that called my pillows lumpy, remember that dame attorneys.
I think I called them all. I called them all criminals,
and uh, you know what, they're coming after me for it.
Speaker 2 (47:51):
But we me one.
Speaker 11 (47:52):
You guys, we keep fighting and my pillow is here
to stay.
Speaker 2 (47:56):
We're not going anywhere.
Speaker 11 (47:57):
And they asked me if I'm gonna quit talking about
secure in our elections. Of course I am, and I
wanted to get on here. I want to thank the
war Room pile to you guys. This is the last
few hours we did this. You guys supported us these
fullestael prices right from our factory so we could support
this trial.
Speaker 2 (48:15):
Forty nine ninety eight.
Speaker 11 (48:16):
Get your free my Pillow two point zero with any
purchase tonight. Do it now the last few hours of
the stale. Go to my Pillow dot com. Use the
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(48:39):
an exciting date for my pillow. I'm telling you we're
here to stay. Made in the USA.
Speaker 6 (48:45):
Promo code war Room, brother, the most powerful promo code
in the world. Will see tomorrow morning stick around the
second hour of the war Room will be quite intense
Do it on the air, he said, quote, we know
exactly where the so called Supreme Leader is hiding. He
is an easy target, but is safe there.
Speaker 2 (00:08):
We are not.
Speaker 1 (00:08):
Going to take him out kill at least not for now.
But we don't want missile shot at civilians or American soldiers.
Our patients is wearing fin You part ways with the
President on that issue, you think you should be taken out.
Speaker 3 (00:20):
Well, what I'm going to I trust President's judgment very much.
I trust his judgment. I think for now is a
term the IATOTA should understand. In Trump world is ever changing.
So what is the President trying to do. He's letting
the IATOTA know if your attack American interest, that's the
end of you and your regime. What am I trying
(00:41):
to do? I'm trying to make the case that ending
Around's nuclear ambitions is not only good for Israel, it's
good for us and we're they're the weagest they've been
since nineteen seventy nine. This region, since nineteen seventy nine
has been a press This regime has been repressing their people,
trying to destroy Israel. Have American blood on their hands.
(01:01):
I hope it's eliminated. I would like to see this
regime fall, but I'm going to leave it up to
the President as to what to do and when to
do it. But I do know this, if we don't
take out their nuclear program now, we'll all regret it.
We're very close, be all in, mister President, and helping
Israel finish the job. And let's see where we're at
after we neutralize their nuclear program. They're in this array
(01:24):
and they're very dangerous. I don't want to underestimate the
danger of being involved in these operations, but the danger
of Iran having a nuclear weapon or surviving as a
state sponsor of terrorism is far greater than the danger
of trying to end the threat. So that's the decision
President Trump has to make, and I think he's the
(01:44):
right guy at the right time to make that decision.
But I'm hoping the sun is setting not only on
their nuclear program but the regime itself. Sooner they leave
the world stage, the better the world will be. We
can have true peace in the Mideast only if the
regime falls.
Speaker 4 (02:01):
In my view, President Trump, emerging out of the White
House's Situation Room after over an hour of deliberations with
his national security team as he's weighing how to respond
to the escalating conflict between Israel and Iran. Sources telling
CNN that the President is warming to the idea of
using American military assets to strike Iranian nuclear facilities. So
(02:22):
joining me now is someone who has spent quite a
bit of time in that very room with our presidents.
CNN senior military analyst Admiral James Stavritis joins us now,
admiralbal I'm admiral, I'm so grateful to have you here,
and this obviously is a foreign policy challenge that has
been on the table for decades. Really, what would you
be advising the president to do given the facts as
(02:46):
we as members of the public not privy to classified information,
understand them to be.
Speaker 5 (02:50):
Right now, let's go back to the situation room itself.
What the president deserves in the situation room is the
best advice. Ultimately, he's going to make the decision. We
elected him to make those kind of truly hard calls,
but he needs unfettered, unvarnished, take the bark off kind
(03:13):
of advice from his cabinet. I hope he's receiving that.
Speaker 2 (03:18):
I think he's.
Speaker 5 (03:18):
Probably got three broad courses of action here case he
won is let the Israelis continue to pound away. Another
one is put pressure on the Iranians by moving forces
into the region, sort of set the table for strikes,
but then use that leverage to get back to a negotiation.
(03:40):
That would be option two. And then option three, of course,
would be to conduct a strike. Your reporting indicates he's
leaning toward option three. I just hope he's getting all
of the advice of both the pros and the cons
of each of those three courses of action.
Speaker 1 (03:57):
Rabia would like to see the theocracy gone. I know
the Emirates would in many other Arab states as well.
But then there's the question of what happens if there
is a power vacuum there. We saw all too well
what happened in Iraq, we saw what happened in Afghanistan
when the Taliban took over and literally a matter of hours.
You've got competing factions as well, who would vibe to
(04:19):
take over Iran. On the one side, you've got the
Crown Prince Razi Polavi, who would like to go in
as an interim leader. The other side of that fence,
you've got the NCRI, the National Council for Resistance in Iran,
which used to be the m e K, which a
lot of people at Roance, would be worse than the Ayatolas.
So what steps into the vacuum if the regime falls.
Speaker 3 (04:42):
Well, I think what will happen is the Iranian people
will know freedom for the first time since nineteen seventy nine.
You know, people probably asked that about Hiller in the thirties,
What would happen in Germany if we took him out
in the mid thirties. Well, I wish we had because
we know what happened when they let him stay in power.
And here's what I can say, taking the Iotola's regime
(05:02):
down is a good thing, not a bad thing.
Speaker 2 (05:05):
And I'm willing to.
Speaker 3 (05:06):
Risk what happens next because I know what's going to
happen if they stay in power.
Speaker 4 (05:11):
But Sir, can you guarantee that can President Trump in
anything I can, can you make the commitment that this would
not lead to a longer war.
Speaker 3 (05:20):
I can guarantee you that if the Itola gets a
nuclear weapon, he will use it. I believe that with
all my heart and soul. So the men and women
who serve they're the ones going, not people answering a poll,
and if you ask them, would you be willing to
risk your life to stop the Ietola from having a
nuclear weapon, all of them would say yes because it
makes their country. Our country is safer. So we live
(05:42):
in a world where you've got to confront problems you
want to avoid World War three, learn the lessons from
World War two. People in World War two appeased Hitler
to the point that it got so much out of hand.
We had a world war and sixty million people got killed.
So we live in a world where you pay now
or you pay life. Let's stop this threat before he
gets a nuclear weapon. Let's end this reign of terror.
(06:05):
Let's do it now. It's not going to take twenty months.
But I can't guarantee you your freedom and your safety
unless we're willing to.
Speaker 2 (06:12):
Fight for it.
Speaker 3 (06:12):
I can guarantee you this. If we don't fight for
our freedom, we will lose it.
Speaker 6 (06:18):
This is the primal scream of a dying regie. Pray
for our enemies, because we're going to medieval.
Speaker 7 (06:26):
On these people.
Speaker 6 (06:28):
There's not got a free shot. All these networks lying
about the people, the people have had a belly full
of it. I know you don't like gearing that. I
know you try to do everything in the world to
stop that, but you're not going to stop it. It's
going to happen.
Speaker 8 (06:40):
And where do people like that go to share the
big line?
Speaker 6 (06:43):
Mega media?
Speaker 3 (06:45):
I wish in my soul, I wish that any of
these people had a conscience.
Speaker 6 (06:50):
Ask yourself, what is my task and what is my purpose?
Speaker 9 (06:54):
If that answer is to save my country, this country will.
Speaker 6 (06:59):
Be say war Room.
Speaker 7 (07:01):
Here's your host, Stephen K.
Speaker 8 (07:03):
Bath.
Speaker 6 (07:08):
Tuesday, seventeen June. You're of a Lord, twenty twenty five.
Obviously a very action packed afternoon, and we're packed this afternoon.
We had a show lined up we were going to
do talk about a lot of finance and the good
things that are coming out of President Trump's administration economically.
We've got a couple of Treasury officials from the World Bank,
Philip Patrick, all that. We're going to get that in.
(07:29):
But we obviously got to talk about what happened the
National Security Council today. President Trump came back from Calgary.
I think partially he was bored. Number two. He had
to get back to deal with the situation at hand.
They did go through alternatives. It's pretty obvious at least
one alternative is to consider strike, at least some sort
(07:49):
of strike, because they're pre positioning massive assets in the region,
both naval assets and air assets, both support logistics assets,
it's and also combat aircraft. That has to be viewed
as at least negotiating leverage. If President Trump is to
is to try to force the hand, which looks like
(08:11):
it's either between a full capitulation on the nuclear program
or maybe even regime change, as this seems to be
changing every minute. Let's go to Jack Basobic. Jack, you're
gonna be on Tim Poole tonight, is that correct? People
can see you on the Tim Poole Show.
Speaker 8 (08:27):
That's right, Steven to the warm boss s. I'll be
on Tim Pool in a couple hours tonight. So we'll
we'll be covering all of this live, We'll be taking
super chats, we'll be doing all of it right there.
We're tracting all of this in real time as.
Speaker 6 (08:38):
Well, so Jack. Obviously, Then the range of alternatives President
Trump's looked at is his current position is, hey, they
can I mean, his constant position is they cannot have
a nuclear weapon. I've told him they can't have a
nuclear weapon. He's tried to negotiate. They kind of try
to tap him along. He wasn't prepared to be tapped along.
The Israelis did what they did. Now we are where
(09:01):
we are looks like the range of alternatives today, Jack
clearly has at least, I mean, you can just tell
from the outside action. They haven't released any statement, but
clearly a lot of assets are being moved around. We
had Admiral stav Ritas there in the cold open saying
that's to give him a range of alternatives. Admiral stav
(09:22):
Ritas is correct. This is what he's trying to do
is have options, to have what we call optionality. Jack,
give us your assessment of the options you think are
out there.
Speaker 8 (09:34):
We'll see if I think there are a number of options. Obviously,
these range from the United States military being ordered to
take runs at the political leadership or even the energy
or infrastructure of Iran, all of which are capable, all
of which are reachable from our air bases throughout the goals,
(09:54):
including Prince Alton Air Base in Saudi Arabia. There's stealth,
there's multi role fighters there at thirty five sixteen F
twenty twos. There's also the bombers to the fifty twos
down at Diego, Garcia. And of course there's been a
lot of talk about the United States coming in and
having the weaponry and the firepower to take out this
underground base over at four dough which is built for
(10:16):
this purpose. Because Israel does not have the bunker busting
bombs or the mops. These gb used these gravity bombs,
which the israelities do not have, but the United States
certainly does. This is why they were built for this purpose,
and of course it was also what the bomb was
designed to do. This is part of the escalatory ladder
and the tit for tet that we've seen in the
(10:37):
directing world, that's hardening world that the ir Adiance and
some of these places up there. This is why Iron
has their shots shot drones underground for example, and all
these other various facilities, and so these options are all
available to the United States. There's also a range of
options from intelligent sharing to asymmetric warfare, so intelligent sharing,
(10:59):
shutting down electronics, going after their communications, going after their media.
There's also a huge range that can be done there
as well, and it really all remains to President Trump
what he wants to order happened here. We're waiting to
hear that readout from the National Security Council meeting which
was told and it just a little while ago at
the White House.
Speaker 6 (11:20):
Jack walk people through what the gravity of bomb exactly.
The mechanism hasn't actually work. It's kind of unique, and
this is why people are saying, well, maybe you put
it on a you know, a C four, if you
put it on a big one of our big transport
aircraft and have the Israelis pushed out the back, or
you put it on an Israeli aircraft. Walk me through
(11:41):
what do we have here and why the size of
ours are are much bigger than there is correct, yes.
Speaker 8 (11:47):
Yes much. Russia has been much larger. Russia has been
using a version of this technology in Ukraine for quite
some time now. And essentially what the Russians are using
for with a smaller version of it is it What
it does is it turns your It turns your use
the parlance, you earned your dumb bombs into smart bombs
because you're up What you're doing is you're able to
(12:07):
upgrade them to a point where they have a rudimentary
type of guidance which is far more far superior simply
just dropping it away, you know, bombs away as as
as we know. And so they're carrying that, you know,
a guidance system, they're monitored, it's controlled externally guided bomb,
you know, depending on the given weight, that's how much
explosives that it has on it has radio and this
(12:29):
this technology has been around for quite some time, but
it's really been plugged up through World War Two and
then even after throughout the Cold War where they've been used.
And it's only been in the Gulf War, the Ukraine
War and on that we've seen them really use now.
And so this is it's it's sort of in the
way that I think of it as it is it
precision guided munitions. It is it is not quite precision
(12:52):
guided mission munition, but it is a it is a
guided bomb, is the best way to think about it.
Speaker 6 (12:59):
The difference between taking out the nuclear program and making
sure they have no capacity to refine material and also
even maybe some of the ballistic missile technology they need
versus regime change, give me a minute on that.
Speaker 8 (13:12):
Before you go to break well, Steve, this could be everything.
So taking out President Trump has been very clear that
he is against Iran's nuclear weapons program. But Iran's regime
depends on far more than just that program. They had,
the IRGC, they have, the Iranian army, they've got, and
of course all of the oil pipelines and the deals
that they have with the Chinese Communist Party. That's really
(13:35):
where that power relies upon. You take out the regime,
and that's going to open up a whole hornet's death,
possibly civil war. This is bigger than Iraq, bigger than Afghanistan,
bigger than Syria, bigger than Libya.
Speaker 6 (13:47):
The shocking thing, though, I think, for a military point
of view, is that, given all their bluster, the Israelis
did take a complete air supremacy. Air superiority first, and
air supremacy. So far, it doesn't seem like there's any
you know, combat aircraft up or the combat aircraft gets up.
Their air defence's systems got destroyed about ninety days ago.
(14:09):
But right now, don't I think in President Trump, of
course you use the Royal we we we have control
of the airspace over Tehran. Right that's never really a
good sign. All of a sudden, you're you're in it.
I tell you what, Jack, and you hang on a minute.
I know you're hanging out, going out to temple. We're
taking a short commercial break. Jack Pasopic is with us.
We're gonna have Joe Lavogna on Special Counselor of the
(14:33):
Secretary of Treasury. Big breaking news at a Treasury Day
about the impact of President Trump's economic program. How about
the economic program on you take your phone out text
Bannon b A N N O N at nine eight
nine eight nine eight Get the ultimate guide. It's free
to investing in gold in special in investing and gold
(14:56):
in the Age of Trump. Back in a moment, here's
your host, Stephen K.
Speaker 3 (15:02):
Bath.
Speaker 6 (15:06):
Welcome back. Joe Lavorgnier is going to join us from
the White House Special Assistant or Special council to Secretary Treasury.
I want to make sure because I have some economic
guys on here. Next Jack Bosobic talking about the economy,
talking about you know, I got a guy from you know,
the formerhead of the World Bank and one of the
under secretaries under President Trump in the first term, Philip
(15:28):
Patrick's going to join us. Obviously, gold is kind of
on fire now, but also there there there are many economics,
not just geopolitical economic Iran is one of the most
important oil and gas producers in the world. They they
provide I think Jack, you would agree that Chinese commis
party anywhere between one point five and two and a
(15:50):
half million barrels per day, either sold directly or through
the black market. They're the principal provider to the CCP
of energy. Those oil fields and there's discussion of the
oil fields may come into play. I think Cutter and
other nations around the world own. I think the oil
fields that kind of go in Bajra, that's part of
us in Iraq. Part of it's in Iran. Of course
that part down by Bajra since it's tons of Sheite Muslims.
(16:15):
Ever since the Iraq War, they kind of claim it
for their own. How big a deal is the geoeconomics
here of of the situation in Iran.
Speaker 8 (16:25):
Well, Steve, the idea of the geoeconomics is key. And
you know we say on human events daily all the
time that when it comes to geopolitics, it's sort of
like you know, the French have a phrase them, you know,
whenever you're trying to figure out something, look for the
look for the woman. Well, in geopolitics we say petrol,
look for the petrol, look for the oil and so
(16:46):
in this right petrol, you don't feel that from me, man,
and that's all me.
Speaker 6 (16:53):
I'm gonna do it as an homage, all right, soodok
ob be.
Speaker 8 (17:00):
You know that's that's one of the fastest ways that
could lead to this regime change, civil war kind of
breakout that we're talking about. But if you want to
talk about the global oil market impact of a massive
sudden supply shock, we're talking immediate. You know, depending on
the broader market conditions. You're talking one hundred dollars barrel oil,
one hundred and fifty dollars barrow futures market, you're going
(17:21):
to get immediate reaction, huge voluntility stocks, commodities, and you
know what, you're not sure what's going to happen. What
OPEC decides to Does OPEK want to cut does OPEK
want to keep flooding the system? The US EU, that's
going to be a lot of pressure then to release
oil from strategic reserves. Of course we're Trump's been trying
to fill by the way, our strategic oil reserve. But
here here we are in you know, summer just started
(17:44):
and you might be seeing six dollars bar oil.
Speaker 6 (17:47):
Or or get our guys or get our guys ripping
and even pumping more Jack social media, you're putting them
great stuff all the time. You're going to tympole You
on the Tempole Show tonight. What is that? Is that
start at eight o'clock Eastern daylight time, the Tim Poole Show.
Speaker 8 (18:02):
So that'll start at eight the ones. You're done watching
all your evening war room, you have your dinner and
then boom you lock in with Tim Kass eight.
Speaker 6 (18:08):
Pmmeter, hang on, I'm gonna try to get you from
Tim's Tim's place at seven when you get out there,
so if we get enough there, we'll come right to you. Okay,
thank you, brother, Thank you the great Jack Pisobic. I
want to go now to the White House. Joe Lavournier,
Special Counsel to the to the Secretary of Treasury, Sir.
(18:30):
Today Scott Besson had an interview would put up an
interview with Maranda Devine. He talked about the increase in
blue collar wages. It's awesome analysis you've done. Can you
walk us through exactly, give us the receipts, give us
the backup, what's actually happening, and more importantly, why is
it happening.
Speaker 10 (18:47):
Sure, So, Steve, the if you look at the President Trump,
it's the first term and second term. What we looked
at when I worked for President Trump in the first
term is blue what we call blue collar wages, which
are non super visory production workers. These aren't people that
are part of the professional managerial class. It's not Wall Street,
it's main Street. It's the backbone of Main Street.
Speaker 11 (19:08):
And what we've.
Speaker 10 (19:09):
Noticed in this first five months of this Trump administration
is that the annualized increase and real blue collar wages
is almost two percent. The next closest growth we had
of that magnitude in the first five months of administration
was Trump one point zero. So it's remarkable the wage
gains he's has. And that's a function really of a
(19:29):
very pro growth, supply side led set of policies where
food and energy costs have been trending down significantly from
where they were, and as Secretary Besson has said, as
there are fewer illegal workers that are artificially depressing wages
keeping nominal wages high, so you have a double whanne
of falling inflation. The inflation numbers have been absolutely stellar.
At the same time nominal wages have been strong, So
(19:51):
your real wages are expanding, increasing purchasing power for the
everyday worker.
Speaker 6 (19:58):
I want to go back because we did this before
in the in the tax cut in seventeen, and it
came to fruition in eighteen and really in nineteen that
I think it was the fall in nineteen you had
the tremendous gains in blue collar versus white collar, non
college graduate versus college graduates. Is that essentially the same
thing here. We haven't got to the extension of those
taxes are still there, But is that what's going on?
(20:21):
Is it anything about the investment in jobs coming back?
I know a big part of this has got to
be an immigration. What do you think is actually the
big drivers here in back of this?
Speaker 10 (20:30):
So you're correct if you look at the big effects
obviously with TICHA was in eighteen and nineteen. If just
to put it in broader sense, from seventeen to nineteen,
those first three Trump years, real media and household income
was up almost eight thousand dollars, more than double what
had been in the prior sixteen years of both Republican
and Democrat administrations. Wow. In the One Big Beautiful bill,
(20:53):
the tax expensing, the likelihood that we get well, we
got one hundred percent expensing on capex back to President
Trump inauguration day, combined with the deduction of plant equipment factories,
that is hugely supply side generative. And what that means, Steve,
is that you're going to get strong productivity growth because
you've got capital deepening. You're giving workers more tools to
(21:15):
produce the goods and services that people want. If you
have higher productivity, you have higher living standards, you have
higher wages. So this bill, once it passes, will codify
and further implement what was built off of Trump one
point zero. And I'm optimistic we'll get faster growth, will grower, deficit,
will grow deficit so that they will fall relative to GDP,
and most importantly, Main Street will thrive. I mean, that's
(21:37):
the way the theory is supposed to work.
Speaker 2 (21:39):
It's the way it worked in.
Speaker 10 (21:40):
Trump one point zero and by all indications, were off
to a great start so far in twenty five.
Speaker 6 (21:46):
Great start. And this shows why the immigration policy seal
on the border, in the mass deportation at the beginning,
that has all worked out. And remember President Trump's focus
and this comes malpass was in the first administration. Scott
Bessett now is Secretary Treasury. Everybody's focused on the working class,
the middle class from main street in a supply side
tax cut, and also to make sure that everything we
(22:07):
can do to increase productivity is there. As Dave Brett
is often there warning us Joe real quickly, what are
you doing? You're one of the great gats inside Treasury.
You've got an incredible team over there. What is your titland?
What are you doing for the secretary every day?
Speaker 2 (22:24):
Well, this is my tenth day.
Speaker 10 (22:27):
So I come from Wall Street and I had the
pleasure of getting to meet know the Secretary a little
bit in my prior private life. I'm helping out in
anything they really they want me to do, Steve, all
things sort of macroeconomics and policy related. And it's been
ten days but it's been fun and hoping I get
to come on with you again and I'll have been
(22:47):
better news to report the next time I'm on.
Speaker 6 (22:50):
Well, it's pretty good news today, Joe. Thank you so much. Joe.
Do you have social media? Where do people go to
find out more about your work? And which you do?
Put this up so people lowick.
Speaker 10 (23:00):
Yeah, on my private role, it was at Lavornyanomics. We'll
see if we can make it an official government role.
But you've probably see me a little bit more maybe
on TV and radio than social media. But we've got
to we've got to fine tune that.
Speaker 6 (23:13):
Thank you brother, look forward to get all your all
this up on social media. Joe Lavorgnier, thank you over there,
one of the team that Scott Beston's pulling together. Really
good news. So Malpass before you you you've got some
observations about the FED, as you often do, David, you
were one of the big, one of the big guns
for President Trump in the first term over Treasury. Then
you head of the World Bank. First off, just how
(23:36):
concerned are you about particularly as this thing starts to
spread in Iran and whatever can happen sabotage. They had
a thing today that there was a vessel stuck in
the mouth of the Straits or horror moves, and I
can tell you having a sailed in and out there
on a destroyers, it's not that big. How concerned are
you for global economics of what's going on in Persia
(23:57):
right now?
Speaker 2 (23:59):
Of course concerned, But the US is powerful and President
Trump has been really clear that's peace through strength. And
also they can't have a nuclear weapon, so there are
exit you know, there's ways, exit ramps that they can use,
and if not, then I think there is power to
control the situation. I think we should really make a
(24:20):
distinction between that meaning necessary steps to control bad outcomes,
that's peace through strength, and then turn to allowing a
free market economy in the US to really expand. And
so in my mind there's kind of a connection. There
(24:41):
is a connection to the Trump plan. The program is
to have the economy be really strong so that we
have enough strength in the US especially, but globally to
really see peace breakout. And he's been clear.
Speaker 6 (25:00):
David President's been pretty critical of pow Over at the Fed.
Wall Street Journal's got a piece. What is your take?
You're somebody the President would always turn to and ask
about these situations. What do you think about the FED
and interest rates? Are they ahead of the curve or
behind the curve?
Speaker 10 (25:15):
Sir?
Speaker 2 (25:17):
They're behind the curve, and they're often behind the curve
and we go from inflation to deflation because they're driving
through the rear view mirror. Their models are really antiquated.
These are forty fifty year old models. That basically say
the US economy can't grow too faster, it'll be inflationary,
and that's just wrong. There's productivity growth. You just heard
(25:40):
Joel Lavornia talking about that as the major strategy. If
we can get manufacturing going in the US and a
small business is really cranking, then it's not going to
be an inflationary economy. It's going to be a growth economy.
So that's within reach. There is this clear PA path.
(26:00):
The data is, you know, is clear that there's room
for the FED to cut. That's the retail sales that
were negative today, the job growth in May, in the
household survey was weak. We've got the prime rate at
seven percent? What are you going to do with that?
And why is that where the US is sitting? So
(26:21):
I think if the FED is clear and Trump has
been that we defend the dollar, we have the dollar
as the reserve currency. If the world believes that they'll
beat a path to our door in terms of buying
buying US debt dollar denominated debt and driving down interustrates,
I think that's within.
Speaker 6 (26:42):
Hang for one second because I want to go back
over this, and I got a couple of the questions.
Philip Patrick from Virgin golds All's going to join us.
Got David Maupass from ahead of the World Bank in
the Worl room. Short commercial break, use your Stephen K.
Ban So brother mountpess And by the way, David was
(27:08):
under Secretary for International one of the most important jobs
in the Treasury Department for President Trump in the first term,
and then head of the World Bank put there by
President Trump. David when you just said the models that
the FED uses, because President Trump, let's be blunt, He's
not particularly happy with Lewis Powell. He's kind of all
over the FED. He keeps saying they're missing the window
(27:28):
here when you say the models are forty years old, clunky.
Doesn't the FED Reserve, I don't know, have like eight
thousand people over there. It's a huge organization, is it not.
Speaker 2 (27:38):
That that's right? Maybe seven hundred, I don't know. PhDs
dumb and dumber. But the Phillips curve is the idea
that there's somehow a tradeoff between unemployment and inflation and
you have to have hire one to get lower the other.
And that is you know, the So the FED is
constantly talking about his mandate that it's supposed to have
(28:00):
price stability and full employment, and somehow those are in opposition.
They work totally together. If you have price stability, you'll
have more jobs in the economy. That's that's what Trump
is talking about, That's what Scott Beson is talking about today,
even of how how do you get real wages up
(28:22):
if the FED is always leaning against it. This is
because you know, if you think about the last forty years,
there's been innovation everywhere except that the Fed. They're still
talking about monetorism, which is ages old, and they're not.
And remember, the FED not only sets interest rates, but
they also regulate banks, and they do it poorly because
(28:46):
they fail and the small businesses can't get credit. And
the FED has this giant balance sheet that's been horribly managed.
They bought nine trillion dollars of US government bonds at
the very trough when yields were the lowest, so they've
got this unrealized loss on their books of maybe a
(29:07):
trillion dollars. So it's just mistakes all around. Old models.
Speaker 6 (29:13):
The last thing you said about us being the prime
reserve currency, we actually are very focused on the rear reset.
We've done a whole special of this We've got a
whole thing we've done in the last couple of years
called the End of the Dollar Empire. We put it
out an installments. We got the seventh installment about the
rear reset. Walk me through what you said in the
last minute of the previous segment about making sure that
(29:36):
there's demand for dollar denominated bonds and that we remain
the prime reserve currency, sir.
Speaker 2 (29:42):
Even today you saw Europe saying they want to have
more room for the Euro on people's shelf space. Well,
that is not really the way to have the world
be safe. You need the dollar to be the backbone.
And that's also important for crypto and digitalization of the
world economy. If you look at stable coins, they need
(30:03):
to be in the US dollars and regulated by the US,
not by some island. I don't know your view on that, Steven.
People can have different views, but I really think that
we can allow and permit this innovation that is the
core of the US economy. All that has to happen
(30:25):
is Treasury and the Fed say they plan to have
the dollar be the core of the global economy for
decades and decades. That would bring down interest rates right there.
If they would say it, but the PhD economists all
think that the currencies should just float around with no
anchor at all. I think that can be fixed pretty easily.
Speaker 6 (30:47):
David Malpass. We hope to have you on here a lot.
Where do people get you on social media where they go.
Speaker 2 (30:54):
On Twitter or x at David R. Mouthpass.
Speaker 6 (30:59):
Thanks Steve Brother, thank you, thank you for coming on.
Look forward to having you back. I think one of
the things we're gonna do is this clearly this conflict
between Israel and Iran, and we're picking up to see
an and just report that the Okay, maybe that was
a false thing.
Speaker 11 (31:16):
I don't want to.
Speaker 6 (31:18):
Okay, Christy Noam is Christie Noam. We'll get more of it.
But the Secretary of Homeland Security has been taken I
think to a local Washington hospital and ambulance. We don't
know anything more than that. As soon as we know more,
we will report it. Philip Patrick, one of my favorite people.
You had Malpash right there saying what we needed to
do to make sure that we remained the prime reserve currency,
(31:40):
our favorite as you as you know, the The Financial
Times of London had this article right about about gold.
If Denver could put it up. I want to make
sure it's up. Got Philip Patrick on it. It starts
with it starts with one of my favorite quotes, Phillips,
and the headline is amazing. As you know, Philip, we've
(32:01):
been working together for four years now, over four years,
and we talked about doing the end of the Dollar
Empire to make sure people understood the importance of the
dollar as the prime reserve currency and how that was
so important. And then what backed that up now the
Financial Times of London that they does this big story
how gold became the world's refuge from uncertainty, which is
(32:24):
kind of the thesis that we've been talking about for
four years. The sub headline in an error where core
assumptions about the global economy are being questioned. Gold has
once more become an anchor, especially for central banks, as
you've reported for four years here. But the lead paragraph though,
talks about one of my favorite quotes is by John
(32:44):
Maynard Keynes, who was the economist that really after the war,
after World War One, they all kind of you went
into Keynesianism, which hadn't been really grasped before, which meant
bigger government's, bigger government, stimuluts, which we're living through that too.
Want to have tree and dollar two treeon dollar deficits
here the year. We say that is a Keynesian stimulus
(33:06):
to an economy, and Kines called gold a barbarous relic
of an ancient world. Sir, So what break down the
financial times and really the financial times coming to understand
what we've been kind of laying at for this audience
for four years, sir.
Speaker 9 (33:25):
Yeah, Look, I mean, as you say, we've been talking
about this for a long time. First of all, we can,
I think, clearly show that John Maynard Keynes was incorrect
calling gold a barbarous relic. Seeing gold this century outperform
almost every other asset class, I.
Speaker 7 (33:41):
Think it's very clear. But I thought a very good article.
Speaker 9 (33:44):
It was summarizing a lot of what we've talked about
over as you said, the last few years, and that
is slowly we are disincentivizing the world to hold our dollars.
Right after nineteen forty six, what incentivized the world to
use dollars was redeemability. Right It was the only currency
in the world that central banks could hand into the
(34:06):
Treasury Department and get gold back in return. Following seventy one,
it was the Petro dollar agreement. Right, the world had
to use dollars to buy oil. Forty percent of the
world's oil supply came from Opek. It guaranteed this demand.
Speaker 2 (34:19):
Right.
Speaker 7 (34:20):
Since then, it's really been stability.
Speaker 9 (34:22):
Right, The dollar, as far as currencies go, has been
the most stable. All of that being said, the world
has been incentivized to hold our US dollar. Well, what
have we seen really since the Biden administration. Right, We've
seen devaluation of currency. We've seen weaponization of our currency.
Central banks around the world are looking at dollars now
(34:44):
more as a liability. There's an asset. Even Trump's policies. Listen,
Trump's been trying to thread the needle. Things like tariffs.
They tell nations around the world. Look, we understand why
he implemented them. We have to boost domestic manufacturing. But
tariffs have negative impacts as well. They force countries to
diversify away from our currency, even the big beautiful bill. Right,
(35:09):
Trump was elected with a mandate, I said to you
before I'm torn on this, Right, you know, he was
elected with a clear mandate to shore.
Speaker 7 (35:16):
Up the borders.
Speaker 9 (35:17):
This stuff is expensive, but it comes with consequences, Right,
That is an explosion in deficits, Right, the dollar again
less attractive to foreign investors. What about the revenge tax
within the big beautiful bill?
Speaker 7 (35:31):
Right?
Speaker 9 (35:31):
The Financial Times reference that specifically. I understand why Trump
has it in there, Right, it's one more weapon that
Trump can use to balance global trade. But I also
understand that as a foreign investor, right, that's a concerning
thing for me. So my concern now is not that
we lose global reserve currency status, but that we move
(35:52):
into a more multipolar world. Right, are the currencies being used,
demand for the dollar waning longer term? Longer term that
can put our position as global reserve currency under threat. So,
you know, we've been talking about this for a long time.
I think Biden put President Trump into a corner. We're
trying to fight our way out, but it's a very,
(36:13):
very tough bat.
Speaker 6 (36:15):
What's the hardest thing he has to do? Because I'm
gonna expand the conversation to talk about this current war
that's going on, and particularly if it expands. But as
you sit here today with all the policy levers President
Trump is trying to do, and you just heard Joe
Lavarnier from Treasury talk about some good news we're hearing
at the get go right, particularly about blue collar wages.
What is the hardest thing you think President Trump and
(36:38):
bestn't have to do to thread the needle.
Speaker 7 (36:42):
It's it's such a it's a very tough question.
Speaker 9 (36:46):
If I had the answer to that, I may be
sitting next to.
Speaker 6 (36:49):
Both of them. Hold it. We had the answer, Philip,
Patrick and Steeve, I wouldn't be doing this. Philip wouldn't
be there. We'd have we'd have the Patrick Bannon hedge fire.
Speaker 9 (37:00):
There's no question about it. Look, I think it's all
about creating incentives. And this is where politics and economics cross.
If you ask me, as an economist what we have
to do, the answer is not politically viable.
Speaker 10 (37:14):
Right.
Speaker 9 (37:15):
What we have to do really is curb spending. We
have to sort of generate more revenue. We've got to
tighten the belt buckle. Ultimately, that's the way to do it.
President Trump's strategy is a riskier one, right, and that
is to grow the economy and to do it at
a rapid rate, faster than debt. But I don't envy
President Trump's position. I've said before, if I left with
(37:36):
his legacy in twenty twenty I wouldn't be back again
because this is a much more difficult fight he has
in front of him. But he's got to balance things
in a way that I think is going to be
difficult to do. But he's got to incentivize Listen, I
thought the trade deal he struck with the United Kingdom was.
Speaker 7 (37:52):
Genius, right.
Speaker 9 (37:53):
That was a way to sort of work China out
of crucial supply chains whilst sort of maintaining good relationships
with our European counterparts. I think that should be the
blueprint for any future trade deals.
Speaker 7 (38:06):
So it's a tough one.
Speaker 9 (38:09):
I think curving deficit spending is going to be key,
Trying to get a handle on the debt's going to
be key, and growing the economy is going to be key.
But we're in a very tough position. Look, it wouldn't
surprise me and you and I have said this for
a long time. Twenty years from now people take an
economics course, there's going to be discussions about the sixty
year experiment from nineteen seventy to twenty thirty with a
(38:30):
global free floating unpacked currencies and how it failed. Right,
And I think ultimately that is the biggest problem. This
is how every empire in history is collapsed and we're
heading down that path.
Speaker 6 (38:44):
Let's go back to that because the Financial Times talks
about that too, and talking Aboutcains that there was a
system in place really from the post war period given
the devastation. Remember they didn't have a system in place really,
you know, from World War One to the Second World War?
Is that people forget it wasn't just World War One
(39:04):
that caused World War II. Caines came to prominence because
he wrote a book about the Versailles Treaty and he
called it The Economic Consequences of the Peace, where he
kind of forecasted that, hey, there's some bast things going
to come, particularly about reparations and debt in Germany and
some of these countries not being able to pay this off,
(39:25):
that maybe the terms were too tough and people didn't
listen to him. And of course it was when people
asked about how Hitler came to power. Hitler came to
power because of hyperinflation in the Weimar Republic. It really
destroyed the currency. And when you destroy person, when you
destroy a country's currency, you really destroyed the fabric of
the country, do you not, Philip Patrick.
Speaker 9 (39:48):
Yeah, absolutely. I don't think any historian disagrees with that position. Today,
the Treaty of Basai put the German people in dire strait,
and desperate people do desperate things.
Speaker 6 (40:00):
I question about that, Philip, Can you hang over a second.
I want to hold you for another block. I get
some of the questions I asked you about the current situation,
particularly as President Trump goes through and looks through a
various alternatives to deal with this situation in Persia. I
don't know if we're going to hear from the President
or not tonight or not, maybe even a press avail,
(40:23):
et cetera. A lot of rumors going around. We're going
to try to track them all down. Short commercial break.
You got Philip Patrick or Birch Gold. Just take your
phone out right now, text Bean and b A. N.
N Owen at nine eight nine eight ninet eight. Get
the Ultimate Guide for investing in Gold and Precious Metals
in the Age, not the era, the Age of Trump.
(40:44):
It is pretty straightforward. It gives you access to Philip
Patrick's team of Birch Gold. Short commercial break, Philip Patrick.
On the other side, we really let us take down
four Room. Use your host Stephen K. Bas Okay, Philip Patrick,
(41:08):
the geopolitical concern flight to quality, we've had, you know,
it's about volatility, it's about safe havens. There's all kinds
of rumor tonight that President Trump may come and address
the nation. We have not heard anything official, right. We
know that people are reviewing a range of alternatives, including
continue on negotiations, but give them a playme or tradeing now.
(41:32):
But if this continues down the path, and clearly Israel
is going to keep pounding the Persians, and the Persians
going to pound back. How and if the oil assets
and resources get hit down there by Bajra and those
massive fields down there, what's your sense of where this
could head as far as financial markets in particularly gold.
Speaker 9 (41:54):
Look, I think it's in our interest for President Trump
to try and end this as quickly as Possiblebviously some
of it, a lot of it's out of its control.
But the longer this goes on, the worst it is
for global financial markets. We saw an immediate response, obviously
from energy markets. We saw a seven and a half
percent spike in oil prices last Friday on the back
(42:15):
of that. Obviously, gold the traditional safe haven when US
treasuries are not spiked as well. It drove up one
and a half percent on the back of that news alone.
From a broader economic perspective, regional instability adds to fuel
the existing inflation that's happening here in the United States
and around the world, and it comes at a time
(42:36):
when major economies are already strained. Right, Europe's in recession,
China's growth is spluttering, and our own GDP in the
first quarter was negative zero point three percent. So I
would say geopolitical shocks like this, they don't create an
economic crisis, but they put pressure on financial system and
make the craps worse at a time when we really
(42:57):
can't afford to So this isn't welcome used domestically for
the economy. But I don't see where this goes. We've
had sanctions on Iran since the nineteen seventies. They don't
appear to be stopping them pursuing a new clear weapon.
Speaker 7 (43:11):
I don't know.
Speaker 9 (43:12):
Again, geopolitics is not my forte. From an economic standpoint,
We've got to end this as quickly as possible, otherwise
it's going to be the catalyst for the Fed to
keep interest rates where they are. That's the last thing
we need from a debt standpoint and from a growth
standpoint in.
Speaker 6 (43:28):
An era of future instability. And you just mentioned that, Hey,
people are going to study from nineteen seventy one to
twenty thirty when you kind of had this floating, you
had fiat currencies out there right without anything really backing
it up. In the article they talk about central banks
have had this kind of fascination with gold here recently,
and that's one of the reasons that the price of gold,
(43:49):
it's one that we told people, it's not the price,
it's the process. You got to learn at what's in
back of it. That's been very strong demand by central banks,
and we got the Bricks Nations. In fact, you guys
will be down there reporting from down there in Rio
for the real reset. What is your anticipation of the
appetite of the central banks to continue to purchase gold
at kind of the rates that they've been purchasing it
(44:11):
in the last couple of years.
Speaker 9 (44:13):
I mean, look, the trajectory is not letting up. Gold
buying is increasing. The biggest single quarter in world history
was the fourth quarter of twenty twenty four. We saw
a slight tail off first quarter of this year, but
The trend generally is increasing, and I think it'll continue
to increase. We have to remember the traditional safe haven
asset was US government debt treasury.
Speaker 7 (44:34):
Specifically, what we are.
Speaker 9 (44:36):
Seeing now is demand for that debt is waning. Right,
the FED lowered interest rates on load interest rates Boring
rates on the tenure went up seventy basis points on
the thirty year one hundred basis points, which is concerning.
So I am of the belief that trend will continue
(44:56):
and until another currency appears. Right, there is not a
current see better than the dollar today outside of gold.
Until that appears, I think central banks will continue increasing
gold hold things. Let's not forget gold overtook the euro
as the number two global reserve our set last year.
My feeling is those trends continue.
Speaker 6 (45:17):
Well, Philip, how do people start to work with your team?
How do they start to work with your team? Where
do they go?
Speaker 9 (45:25):
Of course, so very simple information is big for us
as it is for you. So Birch goold dot com forward,
slash spannon or text bannon to nine eight nine eight
nine eight, either one that will get them access to
free information kits how and wider by precious metals today
and importantly the installments of the end of the dollar empire.
(45:47):
So Birch Gold dot com forward slash Spannon, they can
reach me personally on geta at Philippatrick.
Speaker 6 (45:57):
And people just remember that we don't get into it
a lot, but Birch Gold's got all kinds of methodologies
and mechanism for one k's iras tax deferred all of it.
Get into the details with them. We've partnered with these
guys for four years now. It's been a great partnership
because what we decided to do at the beginning is
do something different and give people information. So they understood
(46:18):
the dollar, they understood currency, they understood what the primary
serve currency is. They understood gold and how important gold
really is in the system, whereas a lot of people
dismiss it, and as Philip said, it's had a better
run in this century than any asset. Pretty it's not
what gold's really set up to do or done historically,
but hey, you never know, Philip Patrick, you guys a
are Birch Gold are terrific, and thank you for taking
(46:39):
care of everybody.
Speaker 7 (46:41):
Thank you for having me. Steve good to see.
Speaker 6 (46:43):
You're really if you get in with his team over there.
It would be a very good experience. Birch Gold dot com.
Go check it out today. Put promo code Bannon in
there and you get all the free access to the information.
Mike Lindell, did you win or did you lose? A
mainstream told me you lost. I'm hearing from the from
(47:03):
the alternative media asked that you won. What is it?
Speaker 11 (47:07):
It's a big win. Everybody, my pill one hundred percent
innocent and Dick, we got completely validated that we did.
Speaker 2 (47:15):
Nothing wrong, never did anything wrong.
Speaker 11 (47:17):
And I want to tell you, Steve, the other part
that the mainstream media is telling you these all this
my statements. They said there's three of them that I made.
Realized they were all after I was attacked. It's like
being in jail and you bad mouth the guard you're
and you're in jail and you weren't supposed to be there.
Speaker 6 (47:35):
They sued me first.
Speaker 11 (47:37):
Before I did anything. And you know what, it's the
same team that called my pillows lumpy, remember that dame attorneys.
I think I called them all. I called them all criminals,
and uh, you know what, they're coming after me for it.
Speaker 2 (47:51):
But we me one.
Speaker 11 (47:52):
You guys, we keep fighting and my pillow is here
to stay.
Speaker 2 (47:56):
We're not going anywhere.
Speaker 11 (47:57):
And they asked me if I'm gonna quit talking about
secure in our elections. Of course I am, and I
wanted to get on here. I want to thank the
war Room pile to you guys. This is the last
few hours we did this. You guys supported us these
fullestael prices right from our factory so we could support
this trial.
Speaker 2 (48:15):
Forty nine ninety eight.
Speaker 11 (48:16):
Get your free my Pillow two point zero with any
purchase tonight. Do it now the last few hours of
the stale. Go to my Pillow dot com. Use the
famous promo code Warroom. Use that Warroom promo code. Get
the micrownses fifty percent off. Get all those Dieza sheets
you guys. You guys deserve them. Get them all forty
nine ninety eight, any size, any color. See if it's
(48:39):
an exciting date for my pillow. I'm telling you we're
here to stay. Made in the USA.
Speaker 6 (48:45):
Promo code war Room, brother, the most powerful promo code
in the world. Will see tomorrow morning stick around the
second hour of the war Room will be quite intense
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