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Episode 4137: This CR Will Be Mike Johnson's McCarthy Moment - Bannon`s War Room | Wave AI Podcast Notes

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Episode 4137: This CR Will Be Mike Johnson's McCarthy Moment

Bannon`s War Room

Thu Dec 19 2024

Episode 4137: This CR Will Be Mike Johnson's McCarthy Moment ...

Summary

Bannon's War Room - Episode 4137: This CR Will Be Mike Johnson's McCarthy Moment Release Date: December 19, 2024

Host: Stephen K. Bannon
Co-Hosts: Natalie Winters, Jake Sherman, Cash Patel, and Special Guests

Overview

In Episode 4137 of Bannon's War Room, host Stephen K. Bannon delves into the high-stakes political maneuvering surrounding Speaker Mike Johnson's recent Continuing Resolution (CR) proposal. The episode provides an in-depth analysis of the potential government shutdown, the inclusion of controversial policies in the CR, and the broader implications for the Republican leadership and upcoming administrations. Featuring insights from political analysts Natalie Winters and Jake Sherman, the discussion highlights the tensions within the GOP, reactions from prominent figures like Elon Musk, and the looming debt ceiling crisis.

Budget Bill and Continuing Resolution (CR) Strategy

Jake Sherman opens the discussion by explaining the intricacies of the 85-day Continuing Resolution proposed by Speaker Mike Johnson. Unlike a long-term omnibus spending bill that funds the government for an entire fiscal year, Johnson's CR extends funding only until March 14th, November 19, 2024.

Jake Sherman [00:08]: "It's an 85 day bill with a whole pile of policies that have nothing to do with general government operations... It's a very bold move by Mike Johnson to put all these policies in a bill."

Johnson's strategy includes embedding a variety of policies—from healthcare reforms to land transfers for new stadiums in Washington, D.C.—raising concerns about the bill's feasibility in passing both the House and the Senate. The short duration coupled with the extensive policy additions makes the CR a high-risk, high-reward tactic intended to force a vote before the impending government shutdown on Friday night.

Speaker Mike Johnson's Leadership Under Scrutiny

Natalie Winters draws parallels between Speaker Johnson's current challenges and former Speaker Kevin McCarthy's struggles, emphasizing the slim Republican majority that necessitates bipartisan cooperation.

Katie [01:49]: "Speaker Mike Johnson says the reality which is they have almost, they have a majority that is so, so slim that they have no choice but to work with Democrats, act in a bipartisan way. Is he going to be punished for this?"

Jake Sherman discusses the potential political fallout for Johnson, noting that while the CR may pass, it could come at the cost of Johnson's position as Speaker. The inclusion of contentious policies risks alienating both conservative members and the broader Republican base, potentially leading to Johnson's ousting.

Jake Sherman [02:17]: "There could be a political consequence to Speaker Johnson that we have yet to calculate."

Public and Political Reactions

The CR has sparked backlash across the political spectrum, notably from tech mogul Elon Musk, who has threatened to primary and oust any Congress members supporting the bill.

Stephen K. Bannon [04:24]: "Elon Musk has been going on a tear on his platform X... Anyone who votes for this thing should be primaried and should be out of Congress."

Additionally, figures like Vivek Ramaswamy and Donald Trump Jr. have voiced strong opposition, further complicating Johnson's position. Jake Sherman speculates on President Trump's potential influence, suggesting that Trump's support could be pivotal in determining Johnson's fate.

Jake Sherman [03:00]: "If he forces this and survives, it's going to be because he's convinced Donald Trump that it's going to be better for his presidency long term."

Debt Ceiling Crisis and Economic Implications

A significant portion of the episode is dedicated to the looming debt ceiling issue. Jake Sherman highlights that the debt ceiling is expected to be addressed by March, adding another layer of complexity to the already fragile CR.

Jake Sherman [09:01]: "The debt ceiling, technically, I think the deal expires the 3rd of January. And I believe the debt ceiling comes in sometime in March."

Natalie Winters criticizes the CR for including provisions that appear to target public health initiatives and expand governmental control, viewing them as strategic moves to undermine the incoming Trump administration.

Natalie Winters [12:12]: "The CR omnibus... mandates that we have to at all times have 12 biocontainment laboratories active... It also suggests that the office of the Chief Administrator and House Office General Counsel has to proactively inform any member of Congress who's potentially being investigated."

The discussion underscores the high-stakes nature of the debt ceiling negotiations and their potential to trigger a government shutdown, especially if coupled with Johnson's controversial CR.

Global Economic Concerns and Modern Monetary Theory

The episode transitions to broader economic concerns, with Philip Patrick of Birch Gold providing insights into the global financial landscape. He discusses the impact of Modern Monetary Theory (MMT) on the global economy and the strategic shifts by central banks worldwide.

Philip Patrick [40:55]: "The 80 year post war era of debt fueled prosperity is over. Trump is the herald, he's ushering in a new age and we're going to have to see how it shapes out."

Patrick emphasizes the unsustainable nature of current debt levels and the potential fallout from the U.S. adopting aggressive economic policies under President Trump's administration. The conversation highlights fears of a depreciating dollar and increased reliance on precious metals like gold as hedges against economic instability.

Host’s Closing Thoughts and Future Outlook

Stephen K. Bannon wraps up the episode by reinforcing the gravity of the current political and economic crises. He underscores the necessity of strong leadership under President Trump to navigate the challenges posed by the CR, the debt ceiling, and international economic pressures.

Stephen K. Bannon [46:09]: "This is why Johnson's got to go... The only guy in the world who could pull this off is Donald Trump. So we've got to have his back."

The episode concludes with a call to action for listeners to support the Republican efforts to prevent a government shutdown and ensure fiscal responsibility, while also promoting upcoming events and exclusive content related to Bannon's War Room.

Notable Quotes

Jake Sherman [00:08]:
"It's an 85 day bill with a whole pile of policies that have nothing to do with general government operations... It's a very bold move by Mike Johnson to put all these policies in a bill."
Elon Musk [02:17]:
"A lot of them just didn't want to answer, which I think is pretty revealing about how frustrated many of them are with the way this particular budget negotiation went."
Natalie Winters [12:12]:
"They are working to extend that for a year. I don't understand how you can even make any case for that, let alone when you drill down."
Philip Patrick [40:55]:
"The 80 year post war era of debt fueled prosperity is over. Trump is the herald, he's ushering in a new age and we're going to have to see how it shapes out."
Stephen K. Bannon [46:09]:
"The only guy in the world who could pull this off is Donald Trump. So we've got to have his back."

Conclusion

Episode 4137 of Bannon's War Room presents a critical examination of Speaker Mike Johnson's Continuing Resolution amidst a backdrop of political strife and economic uncertainty. Through expert analysis and strategic insights, the episode underscores the high stakes involved in preventing a government shutdown, managing the debt ceiling, and steering the Republican Party through internal and external challenges. As the episode concludes, listeners are left with a heightened awareness of the impending political shifts and the pivotal role of leadership in navigating these tumultuous times.

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Transcript

Katie (0:00)

Omnibus. It's not a long term deal on, on the budget. What is it?

Jake Sherman (0:08)

Well, it's, it's an 85 day bill with a whole pile of policies that have nothing to do with general government operations. Katie, usually speakers have two paths. They could do a long term omnibus spending bill which usually which funds government for the entirety of the fiscal year so until September 30th of next year and could hold because it's so long traditionally that can hold a lot more policies because it's just, people just feel like it's a longer term bill. They're already taking a tough vote. Just toss a bunch of stuff in here. In this instance, Mike Johnson did an 85 day, a three month CR until March 14th. So less than three months bill and it, and he also loaded it up with a bunch of stuff. And I hate to say this because, you know, I don't hate to say it. It's reality. Elon Musk has been going on a tear on his platform X over the entirety of the day and saying that anybody who votes for this thing should be primaried and should be out of Congress. Now it is a pretty big bill and it is a very bold, let's call it bold move by Mike Johnson to put all these policies in a bill. Everything from health care policy to transferring land for a new stadium in D.C. i mean you could take your pick of million different policies that people would find objectionable in this thing. And I don't know if this could get through the House of Representatives right now or even the Senate. It's a big question. And remember Katie, the government shuts down on Friday night. Today's Wednesday.

Natalie Winters (1:46)

I mean you don't have a lot.

Jake Sherman (1:47)

Of time to work with here.

Katie (1:49)

This is where we saw Kevin McCarthy really struggle back when he was speaker before he was ousted by Matt Gaetz and a handful of others. And this is the issue of working with Democrats. And Speaker Mike Johnson says the reality which is they have almost, they have a majority that is so, so slim that they have no choice but to work with Democrats, act in a bipartisan way. Is he going to be punished for this?

Elon Musk (2:17)

Well, I will tell you this, Katie. I was just around a bunch of House Republicans and asked a bunch of them that very question and a lot of them just didn't want to answer, which I think is pretty revealing about how frustrated many of them are with the way this particular budget negotiation went. What's interesting about Mike Johnson is that, you know, he was among that group of, of Freedom Caucus Republicans who voted no on all these crs for a good part of his career, became the speaker of the House and then all of a sudden realized why they happen. And he keeps saying every time we get to one of these deadlines that this is the last time we're going to do this. This is the last time. And then once we clear the deck, then we'll be able to start from scratch. His pitch now to his House Republican colleagues is let's just get all this done. Let's clear the deck right now and then we'll start fresh in. We'll go through regular order, we'll do a regular budget. Everything will come out of the Appropriations committees. Everybody will get a say. It'll have 72 hours before we vote on it. He keeps promising that that's the future, but he's yet to deliver on that promise. So, you know, the, the margins are going to be tight here. I think most people are reasonably confident that they're going to get it passed if, even if it comes underneath under suspension, which means it requires two thirds majority, and that they'll, they'll meet that Friday deadline. But there could be a political consequence to Speaker Johnson that we have yet to calculate. The one caveat I' to all of this. Well, yes, the Elon Musk's and Vikramaswamy of the world are out on X. I think Donald Trump Jr. Even came out on X and complained about the CR. We've yet to hear from Donald Trump himself. And there is no one who moves the Republican Party quicker than the President Elect. And one of the things that Mike Johnson has done very well during the short period of time that he's been speaker is develop and cultivate that relationship with Donald Trump. And that is part of the reason that he has been able to hold on to that job. And if he is, if he forces this and survives, it's going to be because he's convinced Donald Trump that it's going to be better for his presidency long term. We don't know the answer to that yet.

Natalie Winters (21:14)

You can at least. I think if there's any time in American history where you can message it, now would be the time. Given inflation and Biden omics. But I do like the Freudian slip because they deserve a pay cut. That's frankly what they need. But no, but that shows you the mindset. I mean I, my jaw dropped. I couldn't believe that a Democrat member of Congress said do not come for my pay. But I want to drill down because I do think it is important to get granular on just some of the absurdities contained in it because I think that's where we're able to mount such strong opposition. So in title six they have a whole section called the Pandemic and All Hazards Preparedness and Response Act. Quite a mouthful, but what it does is essentially reform the Public Health Services act to broaden out the scope and purview, particularly of the cdc. It used to be more so over just influenza and pandemic influenza, but they rewrote that act to make it so the CDC's control they could extend their tentacles to all pathogens of pandemic causing potential. Now the other thing that I think was really, really concerning, they added an entire section. So this was not a revision. They inserted this assessing current and potential health security threats from natural disasters with respect to public health and medical preparedness in response. And as someone who has always kind of paid close attention to the vernacular that the who's and the UN's of the world use where they try to make, whether it's, you know, racism or climate change, whatever it may be a sort of public health disaster, a natural disaster that opens the floodgates for something like that to potentially hamstring President Trump. It also extends this act of 2026 which was essentially the act that we had during COVID So it allows for masks and vaccine mandates, it allows for vaccine passports, it allows for gain of function research, it allows for the hospital bonuses when they incorrectly mark deaths as, you know, Covid, whatever. It also created Barda, which was the entity that was funding all the MRNA and gain of function research. And to that point, because apparently we just have what trillions of dollars to waste. The CR omnibus, whatever you want to call it, also mandates that we have to at all times have 12 biocontainment laboratories active. And if there's not, we have to build the outstanding ones and they have to be biosafety level 2 or 3 for quote, rapid response to biological agents, including emerging infectious diseases. But to me the most concerning part about that bill text is that it was was going to be used to quote support information sharing between and the dissemination of findings to researchers and other relevant individuals. With to me the buried lead being there being that opens up the floodgates. You can still send share pathogens, you know Data bank collections, whatever, with the Chinese Communist Party, with countries that are explicitly hostile to us. And to talk about enemies, we'll go with the enemy within. And that is the way that it's Section six of five. It's subheaded, the treatment of electronic services provided for House offices, which it's sort of vaguely construed. It's hard to understand or discern what exactly they're saying. But from minds smarter than my own, the stipulation suggests that the office of the Chief Administrator and House Office General Counsel has to a proactively inform any member of Congress who's potentially being investigated or if there's records required, requests on them, and they actually put in a section.

Philip Patrick (35:01)

It's interesting and I think this is the thing to watch. Look, I believe in Trump's economic plan because supply side growth boom is literally the only way out of it. We're at a point where austerity is not going to do it. Now, Trump's plan focuses on deregulation, innovation, productivity growth. The problem is there's not something you can legislate. Right. The best you can do is create the conditions, create a healthy economic environment. And that's not cheap to do. Right. It's going to involve some spending. But here's the issue as I see it, and this is, I think the battle that President Trump is facing the US today is about 25% of the world's GDP. Right? Yet, by the way, nothing to sneeze at with the world's largest economy yet we already have 60% of the world's capital investment. Right. What that means is the world is already heavily invested in, in American economic growth. Here's the problem. Trump's economic plan is a huge gamble. Right. The one thing we know about borrowing to boost the economy is creditors don't care how you spend that money, whether it's building bridges or wasting it on hydrogen factories in the Nevada desert. They're going to want their money back. The big question is, are investors going to continue to pay the bill? Are they going to line up and finance Trump's economic agenda? Early signs are concerning pimco, obviously. I think now the second largest bond manager in the world. They've said they're concerned about the sustainability longer term of the United States, citing inflation and just general fiscal sustainability. Now, Trump has a plan for fiscal sustainability, but as you and I know, it's a long term plan. So the question is, in the meantime, are they going to start taking those trillions of dollars and looking for opportunities elsewhere? If do, there's not much President Trump can do about it. Debt. Debt costs will skyrocket and it'll force the position. So there's a big gamble here. There isn't a better man to have at the plate than President Trump. But people have to understand the task in front of him.

Stephen K. Bannon (47:57)

Well, first of all, everybody, I'm going to miss you at amfest because I've been here, busiest time of the year, but I'm there in spirit. And this is the last night, you guys, there is a shipping option available. You can still get them, but they have to be ordered now. You can still get them by Christmas. So we did that for the War Room Posse. And so check it out, there's different shipping options available. And if you want them two day or whatever, you separate different pay things and ones that we still have the free shipping available, but that will not get you there by Christmas. That's orders over 75. So there's a lot of different options available. One thing I did do is I, I left everything on sale for you. That was exclusive to the War Room Posse. This is a once a year exclusive. We're doing keys and dream sheets. 69.98, 79.98 for the king. We have all the other sizes, all the colors. This is my favorite product. This is. You've never slept on sheets like this. They make the best gifts ever too. Promo code, War room. Go to the website, you guys, and go down tsc, our great leader Steve there. Click on them. And here it is. All of the specials are still up. Get yourself a Christmas present, a new bed, 50% off, $100, 50% off plus another hundred dollars for the war Room Potsy mattress topper. You know you're gonna need great rest over the next few weeks and going in feeling great going into the new year. But all the sleepwear that came in up to 80% of off. These are war Room exclusives. They're all still up there and we still remember we still have that. It's at least one shipping option to get there by Christmas. So take advantage of that tonight. This is it you guys. 800-873-1062 and tell them that you got promo code War room. My operators love the War Room Posse. I've been spending the last four days here in Minnesota. I'm going to spend the rest of the week here. And you guys made it possible that we're getting through through the biggest attack that a company could ever take this year. And we thank the war Room Posse. So it's a win, win, win, Steve and you guys. But Christmas guarantee goes to March 1st of 2025. So get those presents now.