
Episode 4137: This CR Will Be Mike Johnson's McCarthy Moment ...
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Katie
Omnibus. It's not a long term deal on, on the budget. What is it?
Jake Sherman
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
I mean you don't have a lot.
Jake Sherman
Of time to work with here.
Katie
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
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.
Katie
I think this and the confirmation battles are going to be really indicative of what it's going to be like during a Donald Trump administration.
Stephen K. Bannon
This is the primal scream of a dying regime. Pray for our enemies because we're going medieval on these people. I got a free shot. All these networks lying about the people. The people have had a belly full of it.
Cash Patel
I know you don't like hearing that.
Stephen K. Bannon
I know you try to do everything in the world to stop that, but.
Cash Patel
You'Re not gonna stop it.
Stephen K. Bannon
It's going to happen.
Natalie Winters
And where do people like that go.
Stephen K. Bannon
To share the big lie? MAGA MEDIA I wish in my soul, I wish that any of these people had a conscience. Ask yourself, what is my task and what is my purpose? If that answer is to save my country, this country will be saved.
War room here's your host, Stephen K. Banner.
Okay, Wednesday, the 18th of December, in the year of our 2024. Jake Sherman, who is on top of everything that happened before President Trump. Do we have, do we have the true social from President Trump? Natalie joins me for this hour. Dave Brat's going to join us for the next hour. Do we have President Trump's true social? What he just said, do we have that? You look it up.
Natalie Winters
Yes. I thought you meant if Cameron had it.
Stephen K. Bannon
No, no, no. You want to read it to us?
Natalie Winters
Give me one second.
Stephen K. Bannon
Yeah. Take your time. So there's been a crazy afternoon. It started with the whip. Tom Emmers. Remember the way this town works. You have both Democrats and Republicans have what they call whips. Those are the heavy pair of hands that are supposed to get votes in shape. And once they say, hey, we got the votes and they cut the deals, the basic toing and froing or the basic thrust and parry, the deals that get cut to get people in line to vote, the big overall deals will have to be cut by, you know, the majority leader or the, or the speaker here. Tom Emers, they asked him today right before he left the air, hey, when's this thing?
Cash Patel
When's this thing?
Stephen K. Bannon
When are you going to be ready for a vote? He says, I don't know. Asked the speaker, just kind of walked away. Jim Jordan, I want to report that. Jim Jordan, and this is pretty extraordinary because Jordan's always been pretty consistent about having Mike Johnson's back. Jim Jordan is a no. A hard no on this. Emers is a no. So it's extraordinary to have leadership on something this important. Not back to play. Vivek Ramaswamy came out with a blistering tweet. This is after Johnson used him as a human shield during the fox injury swarm. I said, well, I talked to Vivek last night at midnight. Vivek was, you know, understands we have one third of 1/9 of 100th of the government. There's nothing we can do. Poor pitiful me. And Vivic was cool. Vivic then came out and said, no. He's a hard no. He listed like a handful of lies. Elon has been a no all day and is repeating that. And then right after Jake Sherman said that. Maybe because Jake Sherman did say that live on msnbc. So you never know what President Trump is watching during the day President Trump came out. Can you read that for us, Natalie?
Natalie Winters
It was a joint tweet from J.D. vance and Trump's the statement, it's very long, so stop me when you want me to. The most foolish and inept thing ever done by Congressional Republicans was allowing our country to hit the debt ceiling in 2025. It was a mistake and is now something that must be addressed. Meanwhile, Congress is considering a spending bill that would give sweetheart provisions for government censors. And for Liz Cheney, the bill would make it easier to hide the records of the corrupt January 6th committee, which accomplished nothing for the American people and hid security failures that happened that day. This bill would also give Congress a pay increase while Americans are struggling this Christmas. Increasing the debt ceiling is not great, but we'd rather do it on Biden's watch. If Democrats won't cooperate on the debt ceiling now, what makes anyone think they would do it in June during our administration? Let's have this debate now. And we should pass a streamlined spending bill that doesn't give Chuck Schumer and the Democrats everything they want. Republicans want to support our farmers, pay for disaster relief and set our country up for success in 2025. The only way to do that is with a temporary funding bill without Democrat giveaw combined with an increase in the debt ceiling. Anything else is a betrayal of our country. Republicans must get smart and tough. If Democrats threaten to shut down the government unless we give them everything they want, then call their bluff. It is Schumer and Biden who are holding up aid to our farmers and disaster relief in all caps. This chaos would not be happening if we had a real president. We will win in 32 days.
Stephen K. Bannon
So now we're going to add the debt ceiling. I think the debt ceiling, technically, I think the deal expires the 3rd of January. And I believe the debt ceiling comes in sometime in March. Of course, a lot you can do with it between now and then. That's going to add an interesting explosive element into this. Oh, by the way. Oh, by the way, what about the debt ceiling? So your assessment, Natalie, you've spent the day going and last night going through this. What is, what's your assessment of what this was? Not that all of this is particularly relevant because I don't think this is. If it comes to the floor now, it's going to come with all Democrat votes and a handful of Republicans and then that Means that we get a crappy CR but we end the speakership of Johnson. What is your assessment of this? Sure.
Natalie Winters
Well, I would go back to four years ago because just yesterday was the four year anniversary of the infamous Four Seasons press conference with Rudy and everyone who stood up there. And Today, of course, December 18th is the four year anniversary of the notorious deception December 18th meeting that I think NPR was like, this is the meeting that all the Trump people came together to try to steal the election. It was crazy, crazy, crazy. And look where we are. Four years we're fighting against the same people and the same forces. And why do I bring that up? Because I think you're also seeing coming from Speaker Johnson right now, the same political lack of courage and just fundamental getting played by the Democrats that you saw from Mike Pence. This is a Mike Pence moment for Speaker Johnson with what he did with this bill.
Stephen K. Bannon
What do you, what do you mean played by? Did he include just some bad elements in quote unquote, his negotiations? Because you shouldn't have needed a negotiation. You got the votes to pass as just the Republicans or I'm hearing that, you know, Jefferies and these guys wrote huge parts of the 1500 pages and they just, they just plug and play. What does it seem to you?
Natalie Winters
Well, I don't know about you, but I do think we were both on the rooftop of the Willard on election night and last time I checked, we won in a historic landslide victory. And we're also, what, the majority in the House. Right. So I don't understand why Speaker Johnson is negotiating from a point of loss. Yes, right. It makes absolutely no sense. We didn't just win, we won overwhelmingly. So I don't understand why we have to cede ground to Democrats a to begin with. But when you look at the provisions, it's almost like the reverse engineer of every single vertical that we've been highlighting on the show in terms of the ways that they want to come after and kneecap President Trump's second term should be third term agenda, particularly on the pandemic and public health front, the lockdowns, the mandates, all that stuff. But even the marginal victories that Congress was going to be able to gloat about, which again, no thanks to them, thanks to the work of people like Mike Benz, the censorship stuff, the Global Engagement center, they're 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. And to think, more importantly, what's not included there and what do I mean, by that, for all the pork that they managed to put in there to help Senate Democrats. You know what word is only in what is it, 1547 pages, just four times border.
Stephen K. Bannon
Wow.
Natalie Winters
Not a single person. And by the way, all the mentions were not let secure the border. It was just, you know, a passing tacit reference. So not one person, and I love all the people who are talking really tough right now about how they're not going to vote for the CR cool. But not one person wanted their pork right or their special cutout, their special privilege, their special interest to be something related to the border. This of course, coming on the heels of the NDIA which we are focusing on yesterday, how section 2890 of that it wasn't Joe Biden who allowed or okayed the sale, the auctioning off of the border wall materials. It was House Republicans who voted to give Joe Biden's Pentagon the radical open bor people up there and at DHS the ability to decide what to do with those outstanding unallocated materials.
Stephen K. Bannon
Does it concern you as a younger person in Benz that one of the things we've talked about is the suppression of people on the right and things like the Global Engagement center being at the nexus of that, that his staff, which are younger policy people, could be so clueless to either let the Democrats negotiate that or just cut and paste from what Hakeem Jeffries and I mean, if you want to set off people on our side of the football and particularly the smart, you know, the Darren Beatties, the Mike Bens, the Natalie Winners, the Raheem Kassams, it's to add to extend it for a year or the Naomi was extend the pandemic. It's like, are you so clueless?
Natalie Winters
And by the way, it's not like this was even hidden or you know, sub point B in the they Created whole section 301 Global Engagement center extension. Right. It so in your face. I don't know how dumb they think that we are, but I think this goes back to something that we've also been honing in on, which is the idea of triaging the 2024 loss from the vantage point of Democrats. And Joy Reid has the huge segment two nights ago. Americans have always believed conspiracy theories, misinformation is spreading. And then the corollary to that is, oh, so we need to clamp down and continue censoring shows like this, go after independent media. So they're giving them a handout, enabling them to do that.
Stephen K. Bannon
And for the first year of President Trump's presidency. It's like when I saw. It's like insanity. You don't realize if they understand they're.
Natalie Winters
Actively being sued by conservative outlets.
Stephen K. Bannon
It's incredible. It's incredible. In fact, this goes beyond controlled opposition. This goes almost a collaboration. That's what's so over the top. Of course, this bill has many bad.
Natalie Winters
Things, not just opposition. Would be doing a heavy lift there.
Stephen K. Bannon
Yeah, exactly. Birch Gold. In fact, we've got our own Philip Patrick on Join us at the bottom of the hour. Natalie's here with me writing shotgun. Birchgold.com abandoned the end of the dollar empire. The new, our new modern monetary theory is coming out, I guess from the University of Chicago.
Cash Patel
Big victory on the 5th of November. Now the work can finally start on the big issues facing the country. One of the biggest is the national debt and the deficits that drive it. Hey, you think the country's broke? The country is broke. We're just printing money to keep this house of cards going. The strategy remains the same for you. You got to diversify, diversify your savings. That's why buy gold from Birch Gold. So many things are out of your control, out of the president's control. It's important to have a safe haven for your savings. Birch Gold group, my gold company company will help you convert an IRA or 401k into an IRA into physical gold. Let me repeat that. Convert your IRA or 401k into an IRA in physical gold. And the best news, it doesn't cost you a penny text band into 989-898. Get your free info kit. Plus right now through Black Friday, you receive a free 1 ounce Silver Eagle for every $5,000 you purchase. Let me repeat that, a free 1 ounce Silver Eagle for EVERY $5,000 purchase. Protect your savings with Birch Gold. Text Bannon to 989-898 and claim your eligibility for your free silver today.
Stephen K. Bannon
Here's your host, Stephen K. Ban. We're heading out to Amfest. Make sure you go to amfest.com if you haven't gotten a ticket and you're in the general Phoenix area or Arizona or New Mexico, Southern California. Love to have you out there. We're looking forward to a big turnout of the Warren posse. We're going to be doing, I don't know, 10 hours of shows live. We'll have Natalie will be out there, Grace Chung, Mo, the whole crew, Jane Zerkel and others. So. And we'll have posts on everybody else, tons of contributors. The ones that are not going in the administration will be with us, it's going to be a great time. 25% off the ticket if you include worm mfess.com war room also home title lock make sure with this financial hey, when the president throws in, hey, let's get the debt ceiling in the cr. I can tell you that if President Trump wants the debt ceiling inside the CR this time, we're gonna have a government close down. Saturday morning, folks, that's just not gonna happen. I don't think that will be a, that will be a, that will be a wild one. Might happen at some point in time, but won't happen in the 24, 48 hours. This may be DOAS I'm sure Johnson's right now figuring about his career. Hometitlelock.com make sure that the 80 or 90% of the your net worth that's in your home is not snatched up by a bad guy. Go check it out today. Hometitlelock.com Bannon and maybe, hey, I don't know if you got parents or if you got and they got a home lucky enough to have a condo, maybe, maybe give us a Christmas gift, a stocking stuffer. How about that? That's a conversation piece. As Natalie Winters.
Natalie Winters
Speaker Johnson might be out of a job. Who knows? He's going to come for your mortgage.
Stephen K. Bannon
Come for your house. You've got a couple things to read. There's some good things. Jake Sherman and others. Right now we're trying to ascertain, folks, what's happening up there in the Capitol because as we said, hey, the German government, the French government, the British government not too long ago, the Canadian government here in the last 48 hours, a lot of these governments are blowing up because of finances. I would actually say Biden was the same thing because of inflation. So you get six or seven of the big ones. And right now the Johnson speakership hangs in a thread because of a and here's what I don't get, Natalie, you're going to read something I don't understand how he told Vivek, went on Fox told Vivek and Elon last night, Midnight brags we're on a tech stream together. And he says and they didn't know any of the details of this. Vivek puts out this brutal tweet later that goes through in pretty good detail of some of the basic problems with this. So that he clearly didn't tell them. Also, everybody's telling me, hey, well, you can't jump out there, Steve. You can't get out in front of this because President Trump really loves this guy and supports him. I go, well hey, President Trump doesn't support this or he hasn't been read in properly. Then all of a sudden you got Trump dropping a bomb on this guy's head.
Natalie Winters
You should have told me that before I hosted War Room yesterday evening.
Stephen K. Bannon
No, no, just go for it. We can go down the limb. You're a new generation. What do you got? Some Jake Sherman and others.
Natalie Winters
Yes, let's read. So Jake Sherman just tweeted about 20 minutes ago. The House Republican leadership is also a bit of a mess at the moment. No one knows what Johnson is going to do. The leadership thought his CR was a step or many steps too far to begin with. And I just want to tell a brief anecdote to the audience. You know, I usually peddle and cold hard facts with my reporting, but I was on a the hill in Washington D.C. today and I actually ran into a member who we have on the show quite frequently.
Stephen K. Bannon
You're a walker, you walk all over.
Natalie Winters
Oh, 30,000 steps a day.
Stephen K. Bannon
30,000 steps a day. 10, 10,000. 30,000 steps a Day. Wow.
Natalie Winters
While I listen to MSNBC and stack headlines for Citizen Free Press. I not neurodivergent at all, but very interesting because a Democrat member of Congress. As I was walking with this Republican member of Congress, I didn't know his name. They all. There's a certain physiognomy, they're kind of hard tell. So I looked it up after but I literally couldn't tell who it was. He comes over and he goes, this is a direct quote. Yeah, yeah, yeah. Haha. Vote however you want, but don't come for my pay.
Stephen K. Bannon
He wanted to pay. Is that interpret. He wanted the pay increase.
Natalie Winters
Interpret that how you will. I think given the pay increase. The first since 2000, I swear.
Stephen K. Bannon
Wow.
Natalie Winters
Don't come.
Stephen K. Bannon
Wow.
Natalie Winters
I was like, well you certainly sir, don't watch the war room. You don't know who I am. You didn't say off the record, but that shows you the problem in this town.
Stephen K. Bannon
What about hiding the pay cut? I mean the pay raise. Wouldn't you be out front and say, hey, we gotta do this. We haven't had a COLA increase in 10 years and we need or 12 years, however long we need it we need.
Natalie Winters
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.
Stephen K. Bannon
So this would limit. This would limit Cash Patel from. From pursuing Cheney and other people.
Natalie Winters
That's the opening bid. But the worst part is that they put motions to quash or modify. And this is where it gets a little gray. But essentially it suggests that if the House office administrator. It's a girl named Catherine and I. I won't guess what her politics are, but you can probably guess where she lands. Thinks that whatever documents they may be turning over are disingenuous or disadvantageous, whatever to whoever is under investigation, Liz Cheney or otherwise. And it refers to past current and former investigations that they can modify those subpoenas. And I would just say we're very ideologically consistent here in the war room. But that's quite interesting stipulation to be pushing the same day that what they're pushing out the Matt Gaetz ethics report.
Stephen K. Bannon
What are you shocked about process here? This is clearly either Hakeem Jeffries gave him a big section of this and. Or this has been negotiated for weeks and weeks and weeks. This is not something they brewed up in the last 72 hours.
Natalie Winters
No, no, definitely not. It's 1,547 pages. The CR text itself is about eight pages. The overarching, kind of like, guidebook. The title summaries for the rest of the stuff they put in is longer than the actual CR text itself. This is, you know, I love. They accuse us of, you know, waging retribution, warfare against, you know, the enemy within. This is retribution against the American people for electing Donald J. Trump. I mean, it's very clear what they're doing.
Stephen K. Bannon
Your point is, hey, we just had a definitive verdict from the jury of the American people, and here they put all of this in with a bunch of these gimmicks to really chop down.
Natalie Winters
Gimmicks is too nice. It's too euphemistic. You're talking about the potential with. We all know what they're doing with bird flu right now under what they've put in there you could see a Covid 2.0. And I'm not just talking because they got the gain of function research sub.
Stephen K. Bannon
Coming out of the bird. Flew out of California right now and.
Natalie Winters
President Trump would be totally kneecapped.
Stephen K. Bannon
Walked in right. Totally hamstrings how this shows you this is why Johnson's got to go obviously in the team, his internal team hopefully Jim Jordan and others will step up because we got to get a grip on this thing. Now I think the recommendation is pull it but if President Trump said now include the debt ceiling, you know we're going to have a whole discussion of that. But I would just give him a two or three liner figure out and just tell the farmers hey you're going to have to hang on for another 30 days or 60 days. And the same with the relief I think the relief they got enough cash I understand in fema. It's just the fact that Biden is holding it back and will not give it. This is where I think you got to start playing hardball with. These guys are absolute total mess. They've had forever to work on this and and drop this at the last second. I happen to think we're pretty odds on that. The government's going to at least close down which I hate. I'm all for closing it down. And when President Trump shows back up let's pass it the first day and open the government back up on the afternoon of his of his inauguration. Amfest.com promo code war room 25% off. We're heading out there tomorrow will be live at amfest morning and afternoon show Thursday morning afternoon.
Natalie Winters
Don't sit in the front row for your speeches unless you want to have a microphone.
Stephen K. Bannon
I'll be doing I guess Don junior Tucker myself tomorrow night I believe is the rumors has it been announced is the president coming?
Natalie Winters
Yeah and so is Speaker Johnson. So that'll be interesting.
Stephen K. Bannon
We'll see what's the over under that. Okay. Short commercial break Philip Patrick Birchgold next in the war room.
Cash Patel
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Stephen K. Bannon
Here's your host, Stephen K. Banner. Okay, government gangsters.
Cash.
We haven't had time today and we're not hopefully we'll do it tomorrow. They're in full meltdown on Liz Cheney. They're in full meltdown on the end of democracy. This is all they're covering. We are trying to stick with the important stuff right now which is, I don't know, keeping the government open. I'm all for letting it ride, baby. You know you're still going to get the Social Security checks, all the important stuff you're going to get but just let it, just let it go. And right now we just got can you. So no more votes today, right?
Natalie Winters
It's been reported.
Stephen K. Bannon
I'm getting congratulations from different people at senior levels. I guess maybe the word is out on something else. But no votes today. So they pulled no more votes. At least they pulled it for today.
Natalie Winters
Yes.
Stephen K. Bannon
That means, you know, unless they voted tomorrow morning early and got the Senate, there's not. I think this thing's going to shut down. So I think some people are going to be here for Christmas. I don't think this thing's going away anytime soon. We'll drill more into that into the next hour. Dave Brett's going to join us live. I want to go now to Philip Patrick of Birch Gold. Philip, the president just tossed kind of, I don't know, kind of a bombshell into this. He wants to deal with the debt ceiling now in a cr. What is your thoughts? You had the Federal Reserve did another cut. We advised Powell on war room not to do that. I think he also implied no cuts for next year or maybe nothing for 2025. I don't know if that's the Choploc. Trump markets are in total turbulence. I think it's seven or eight days in a row, which is I think a record from 30 or 40 years ago for the Dow with even a dead cat bounce. It's probably a pretty good time. Philip, besides the macro, you're going to give us, I think the audience for Christmas and for ease of mind, just contact Birch Gold and talk to Philip and the team about various alternatives and quite frankly, why gold has been a hedge against financial times of financial turbulence for 5 to 10,000 years. I mean, gold's been on a roll like nobody's business for the last couple years. But that's traditionally, as you know, Philip, gold doesn't really traditionally move like that. It's a store of value instead of like a hot running stock, but it's performed like a hot running stock. Your thoughts as we sit here on this Wednesday afternoon in mid December, close to the end of the year. Philip?
Philip Patrick
Patrick, it's interesting times to say the least. As you say, gold is on a tear. It has been for the last number of years, certainly through Biden's administration, but really started to change at the turn of the century. Gold since the turn of the century has outperformed a lot of other asset classes and it's tied into money supply.
Jake Sherman
Right.
Philip Patrick
We've seen what the administration has done over the last four years, but we started massively increasing the money supply towards the turn of the century. There is a direct correlation between growth in the money supply and growth in precious metals. Put that into the context of the last four and eight years, four years really, respectively, and I think it tells you where things are heading. Things are, as you say, shaking up in the economy. The Federal Reserve cut interest rates today, yet despite that, they released a new dot plot forecast suggesting higher for longer. The interesting part was the neutral interest rate or R star rate, which in 2023 was 1 1/2 percent. They've now moved it to 3%. For the foreseeable future. It's going to be working against Trump's economic plan. Ultimately, he's a supply side guy. He's looking to grow the economy next year. That's going to make it a little bit tougher. It also is going to put a highlight on deficits and of course debt service, which is already at unmanageable levels. In a higher interest rate environment, that's going to become more urgent for the administration to try and deal with so just more and more problems for President Trump to be dealing with come January 20th.
Stephen K. Bannon
I gave the speech on Sunday night about talking about the bond market and how of all the, the problems he has in crises, he's stepping into the beginning stage of the kinetic part of the third World War. He's working on plans to seal the border and begin, commence the mass deportations of 12 to 15 million folks. But it's really that third, the economy, the debt ceiling, all of it for the bond market. The bond market has been a little choppy. This is what my concern is, is that it's turfed out the government of France. It's essentially turfed out the government of Germany. It turfed out a while ago the government of England and is crushing the current government. It just turfed out the Canadians. It turfed out Biden, you know, because of inflation. Give me your sense of the bond market. How are they responding, particularly to President Trump's plan? Because all you hear, and this is why I didn't like the rate cut. You hear people, oh, his plan. So inflationary. What's the one doing tariff is inflationary. What's he wants to do on Senate and the migrants, the illegal migrants home is inflationary. What's your sense of the bond market right now?
Philip Patrick
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
Yes, that's why I say the bond market is everything. There was a discussion last week, Zara Hitch picked it up and other people that if you look 400 days in the future, which would be the anniversary of the first year of President Trump's second term, his third victory, but second term, and that traditionally is in second terms, when people get most of their work done, there will be $40 trillion face amount on the balance sheet. And that is, you know, at that time increasing by a trillion dollars every hundred days. Is that sustainable Philippines metric?
Philip Patrick
It's not sustainable at all. And that's what I'm trying to stress. The gamble here is significant. We're hoping that GDP growth will outpace debt growth, but that's a tough task. Since the 1970s, debt has averaged 8.5% of growth a year. GDPs average, 3%. Like I said, we're already a mature economy. It's going to be a tough thing. Thing. I'm very excited for Trump's plan. Tax cuts will help to boost the economy, but we're going to have to make up for that loss in revenue. I think Doge can do it, I think tariffs can do it, but they're not going to stop deficit spending. We need to spend more productively and we need to start seeing the effects of that spending quickly. But it's a tough, tough, tough task. Look, I have a lot of faith in President Trump, but I'm diversifying myself. I have faith in the American people. The American economy is my big concern today. PIMCO are diversifying and I'm diversifying as well. And I think everybody else should be looking at it. It doesn't mean we're betting against the U.S. we're just being prudent and making sure we're hedging those bets.
Stephen K. Bannon
Well, somebody else is divesting or diversifying. They had a story in Zero Hedge about Goldman Sachs has now come out and said and I don't quite totally understand the calculations but their reporting is that the Chinese, the Central bank of China and the Chinese government may have purchased three times more of gold than has been calculated. And you and I talk a tom about record purchases from India, from Russia, from the Saudis, from sub Saharan Africa and from the Chinese particularly. Do you have any insights on that? Is that close to being true?
Philip Patrick
Yeah, China are purchasing huge amount unofficials purchases though not by the People's bank of China. The thing about China, they have government entities and they purchase through. But understanding what's happening coming out of China is tough to do. Something else that's very specific about the Chinese, they don't allow any exporting of domestically mined gold. So they have their national interests at heart. But we're seeing central governments around the world setting records for gold buying. You mentioned India but there are others as well. The brics have been driving gold buying in an attempt to de dollarize. Look, at the end of the day when you have a debt problem on a global scale, gold is what central banks turn to to shore up balance sheets and they're doing it around the world in record quantities.
Stephen K. Bannon
Do you see other, I mean Canada got blown up last night, England about a year ago, the French, they just put a new moderate in. Germany is called for early elections. You could argue the US Your sense other governments are going to fall because of their mishandling of their own balance sheets and economies and finances.
Philip Patrick
We're seeing the same issue repeat itself around the world and I think it's well timed that we're coming out with the sixth installment of the end of the Dollar Empire series which talks about modern monetary theory which I think largely is responsible for the problems we're seeing around the globe. But the situation we're in, it reminds me of a quote I saw from from Henry Kissinger. It said I think Trump may be one of those figures in history who appears from time to time to mark the end of an era and to force it to give up its old pretenses. And I think what's clear is 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. But I think we'll continue to see volatility. We'll see squeezes on other foreign governments. It's going to get interesting next year. I just hope we come out of it unscathed or intact, I should say.
Stephen K. Bannon
How do people get our new combined work, the modern monetary theory, the idea that broke the world.
Philip Patrick
Very simple. Birchgold.com Bannon Bannon Birchgold.com forward/Bannon they can get the first five in the series. The sixth, I think will be ready early next week. So birchgold.com forward/bannon that'll get them access to the end of the dollar series as well as information on how and why to invest in precious metals. We also have a guide on how to invest in precious metals under a Trump administration which really talks about the challenges that President Trump's facing in his in his second term. So birchgold.combannon that simple.
Stephen K. Bannon
Remember, if you got a phone, It's Bannon. Text Bannon 989898. You get all the about the IRAs, 401s, all the information totally free from the team at Birchgold. And now more than ever, particularly if we add the debt ceiling in it.
Mike Lindell
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Stephen K. Bannon
Bannon here's your host, Stephen K. Bannock. Okay, we're, we're jumping out of here. You've got to say goodbye. We're going to see you later. Heading out. We're heading out to Amfest with a whole crew of folks.
Natalie Winters
Exciting.
Stephen K. Bannon
Any closing thoughts? I'm going to be here for the first part of the next show because I got got a pivot. It's the 80th anniversary, the beginning of the Battle of the bulge. Patrick K. O'Donnell is going to join me. Also Taj Gill, and we're going to talk about Ukraine. Got to talk about my favorite topic, Ukraine. Just absolute mess of over there. Just very, very, very bad. And Ben Harnwell's got some great reporting from Rome. Any closing observations? I guess we'd live to fight another day on this.
Natalie Winters
My closing observation is that you don't call them Polly Pockets anymore.
Stephen K. Bannon
I did. I did. I think I did today a couple of times. I did. It slipped out. I shouldn't. There's no need to make this personal, although I do. Quickly. It's just this has to change. We can't because these are the easy ones. This is so easy. This is a baby stout.
Natalie Winters
This is the opening act.
Stephen K. Bannon
Opening, but even opening act sometimes. This should be.
Natalie Winters
This is the crew coming to make sure the sound system works.
Stephen K. Bannon
Exactly. This is so easy. And folks like even throwing the debt ceiling in there. The debt ceiling is. That's complicated. Right. So. And that's just one complication of 100. I spent a lot of time in New York over the weekend with a lot of finance people kind of walking through how everything has to converge. President Trump can do this. He's unleashed the animal spirit. You see the people much more, more saying, yes, this economy is coming back, but we have big structural issues and of course, capital markets that the bond market where we're going to finance all this could turn against us. So President Trump's got his work. The only guy in the world could pull this off is Donald Trump. So we got to have his back. Just that it's going to. This one's easy. Johnson blew it. It's just disgraceful.
Natalie Winters
The pay raise to cap it off.
Stephen K. Bannon
Unbelievable. Natalie Winters, thank you so much. We'll. We'll see you going to be. We're going to be live at Amfest tomorrow. Amfest.com put in war room and you get a 25% discount. Anybody in the area, come on down. We're going to absolute, absolute blast the cash. Patel Cash is getting rave reviews on Capitol Hill today. We haven't shown you, but CNN and particularly msnbc, they're not covering what we're covering at all. They're literally talking about Liz Cheney. President Trump, you know, Loudermore came out with a criminal referral I guess over to the FBI for her for activities on the J6 committee and other things. Going on. This is the new fascism, the rise of the new fascism, et cetera, et cetera, et cetera. They're maniacally focused on that. Cash Patel's movie, because they're all over cash now is going to the FBI, government, gangsters go to war room film. Very proud that we're going to be making some announcements over the Christmas holidays, I believe, about a much more aggressive program on both our books, which we're really cited. How great the publishing arm has gone. And also films with Kash Patel's War room. Go there today, download it, share it, talk about it over the holidays. Really walk through Cash's thinking when he talks about the deep state and the administrative state. And he has blunt. Senator Tuberville told us today, Pete Hex has been great in the room. Pam Bondi's been great in the room. Bobby Kennedy's been great in the room Room. Kash Patel's been great in the room. And the others that they've seen, they're coming very well prepared and kind of on point. Mike Lindell joins us. Mike, we're running up now to the Christmas holidays. People want to know what can they do to get their gifts from mypillow, sir.
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.
Fantastic. Mike, we'll see you tomorrow morning. We'll be live from Amfest and you'll be on the factory floor. So we'll, we'll, we'll hook you in and you'll get to meet all the posse members that are out there. There. Sir. Warpath coffee. Go check that. Taj Gil Tas Gill will be up in the next segment. The coffee best ever made. Also sacred Human health got my grass fed beef livers. So much more. Just go to the site warpath or sacredhumanhealth.com Go check that out today got immunity products. You you've got grass fed beef liver, magnesium D3, all of it. Also don't forget particularly for the holiday season, National Pulse. Go to nationalpulse.com Raheem and the team putting up great news 247 kind of it's a War Room Posse's site plus the long term followers of Raheem Kassam which are many his his amazing analysis and reporting. Raheem's going to be in Amfest with us. He'll be on the show all three days that we're out there. Look forward to it. Next we're going to take a short commercial break. Stick around. I've got Patrick K. O'Donnell. Patrick K. O'Donnell, he of the being a combat historian, I wanted to make sure that we kicked off really the commemoration of the Battle of the Bulge. Kind of walk you through it. He'll join us. Tage Gill is going to give give you his sense of that battle. And then I got Ben Hornwell, I got to talk about the Ukraine. A lot of lot of stuff going on. Ukraine particularly people are trying to get to try and get President Trump and trying to suck him in the things that we don't want to get sucked into. You're going to see it all about these security guarantees, more money, all of it in the Ukraine. Short commercial break Also, Dave, Brett is going to join me from the book of Revelations when the man comes around is going to take take us out for this hour. Back in a moment. You ever think how can I work.
Cash Patel
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Cash Patel
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Stephen K. Bannon
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Cash Patel
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Stephen K. Bannon
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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
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.
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.
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."
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."
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.
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.
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.
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."
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.