Episode 4659: Breaking Down Trump's Economic Program

Summary

Podcast Summary: Bannon’s War Room
Episode: Episode 4659: Breaking Down Trump's Economic Program
Release Date: July 25, 2025
Host: WarRoom.org (Stephen K. Bannon)

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Introduction

In Episode 4659 of Bannon’s War Room, host Stephen K. Bannon delves deep into former President Donald Trump’s economic strategies, focusing on critical issues surrounding the Federal Reserve (Fed), cost overruns in federal projects, and broader economic policies. The episode features insightful discussions with David Malpass, former World Bank president and former Under Secretary for International Finance under President Trump, Scott Bessen, and expert Philip Patrick from Birch Gold Group.

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Federal Reserve Building Cost Overruns

Timestamp: [00:00] – [01:54]

The episode opens with a discussion about significant cost overruns in the Federal Reserve’s building projects. Scott Bessen highlights that the renovation and construction of the Fed’s headquarters have seen expenditures balloon from an initial $1.8 billion to approximately $3 billion—a nearly doubling of costs.

• Scott Bessen: “The headquarters is three buildings... $3 billion and counting... the cost overrun is massive.” [00:04]
• David Malpass: “It's a massive cost overrun.” [01:18]

This alarming increase underscores the inefficiency and lack of transparency within the Fed’s project management, prompting calls for a thorough investigation into the submitted plans and their subsequent modifications.

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Critique of Federal Reserve’s Management and Economic Models

Timestamp: [05:17] – [22:18]

David Malpass and Scott Bessen provide a scathing critique of the Federal Reserve’s current management practices and economic models. They argue that the Fed’s outdated models are failing to address present economic realities, particularly concerning inflation and interest rates.

• David Malpass: “The central banks are part of the government, and so they grow just like everything else in the government. And that means cost overruns on buildings.” [05:17]
• Malpass on Fed’s Economic Models: “They have their models wrong for decades. And they give you the wrong answers and they deny it.” [06:45]

Malpass emphasizes that the Fed’s reliance on incorrect data—such as inflated housing price metrics—leads to unnecessarily high interest rates, which stifles economic growth and burdens the average American. He connects this to the broader issue of central banks worldwide collaborating to maintain high rates, benefiting elites while harming small businesses and the middle class.

• Malpass: “This is why Scott Bessen keeps saying we need to review all of it... we need to go through a strategic analysis of exactly why do you have so many people?” [04:17]
• Malpass: “The Fed needs a fundamental upheaval... it’s a full rewrite of how the Fed interacts within the government and how it thinks about what its job is.” [12:59]

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President Trump’s Economic Strategies and Fed Relations

Timestamp: [19:32] – [24:53]

The conversation shifts to President Trump’s economic strategies, particularly his stance on the Dollar’s strength and domestic manufacturing. Malpass applauds Trump’s efforts to pivot away from policies that favor a strong dollar, which he argues have historically led to deflation and reduced competitiveness.

• Malpass: “Trump’s pushing back on that and saying that’s not what our policy is. And then he said very clearly he’ll never be known for a weak dollar either.” [19:32]

Malpass advocates for stabilizing the dollar to attract global investment and support lower interest rates, facilitating domestic production and reducing reliance on subsidized foreign manufacturing. He criticizes the Fed for maintaining policies that hinder wage growth and economic expansion.

• Malpass: “We need models that are honest about inflation so that you can get there... the Fed right now just rejecting that.” [10:50]

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De-Dollarization and the Rise of Gold

Timestamp: [28:25] – [34:53]

Philip Patrick discusses the global move towards de-dollarization, led by BRICS nations (Brazil, Russia, India, China, South Africa), aiming to reduce dependence on the US dollar as the world’s reserve currency. This shift is expected to diminish the dollar’s value and increase demand for gold as a stable asset.

• Philip Patrick: “The Fed has been a very ineffective institution since inception and it’s been very bad for the middle class of America.” [31:22]
• Malpass: “The dollar is what deteriorated 11% in the last six months. Is my math correct on that?” [34:48]
• Patrick: “Gold will continue to be the solution for central banks... they have been very poor at their job since inception.” [33:10]

Both Malpass and Patrick emphasize gold’s enduring value as a hedge against currency devaluation and economic instability. They argue that central banks’ increased gold purchases signal a broader shift away from fiat currencies.

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Ukraine and Geopolitical Tensions

Timestamp: [45:02] – [49:23]

The episode touches upon the ongoing geopolitical tensions in Ukraine, highlighting recent protests against President Zelenskyy. Bannon suggests that the mainstream media is losing support for Zelenskyy, viewing him as counterproductive to their agenda of prolonging the war against Russia.

• Bannon: “The mainstream media... are trying to discard Zelenskyy to bring in General Zaluzhny.” [41:29]
• Malpass: “We want this war to end as quickly as possible with no more American commitment.” [51:57]

This segment underscores the internal and external pressures shaping Ukraine’s political landscape and the broader implications for US foreign policy.

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Call for Comprehensive Federal Reserve Reform

Timestamp: [22:18] – [24:07]

David Malpass and Scott Bessen advocate for a comprehensive overhaul of the Federal Reserve, arguing that merely replacing its leadership will not address the systemic issues. They call for a strategic review to restructure the Fed’s operations, reduce its size, and realign its policies to support economic growth rather than elite interests.

• Malpass: “We need a full upheaval... change every model to be a growth model.” [22:18]
• Bessen: “If you take out that building out of it, it's still an inflation from 1.4 billion to 2.5 billion. There's no way around it.” [01:06]

They stress that without substantial reform, the Fed will continue to hinder economic progress and exacerbate the cost of living crisis for ordinary Americans.

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Conclusion and Future Discussions

Timestamp: [37:22] – [49:23]

In the closing segments, Malpass and Bannon reflect on the interconnectedness of domestic economic policies and international financial systems. They reiterate the importance of understanding the underlying forces driving economic stability and advocate for proactive measures to safeguard American wealth and sovereignty.

• Malpass: “Once you understand that, you'll be able to take care of yourself and the guys that take care of with is Birch Gold.” [34:53]
• Bannon: “Let's get the facts out regarding the biolabs and the Joe Biden administration’s actions... Let’s get to the bottom of this.” [49:12]

The episode concludes with an emphasis on continuous vigilance and strategic planning to navigate the complexities of the modern economic and geopolitical landscape.

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Notable Quotes

• Scott Bessen: “The cost overrun is massive.” [01:18]
• David Malpass: “It's a massive cost overrun.” [01:18]
• Malpass: “The Fed needs a fundamental upheaval... it’s a full rewrite of how the Fed interacts within the government and how it thinks about what its job is.” [12:59]
• Philip Patrick: “Gold will continue to be the solution for central banks.” [33:10]
• Bannon: “The mainstream media... are trying to discard Zelenskyy to bring in General Zaluzhny.” [41:29]

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Key Takeaways

1. Federal Reserve Critique: Significant cost overruns and outdated economic models within the Fed hinder economic growth and disproportionately affect the middle and working classes.
2. Economic Policy Reform: Comprehensive restructuring of the Federal Reserve is essential to align its operations with growth-focused economic strategies.
3. De-Dollarization and Gold: Global shifts away from the US dollar towards gold highlight the need for American investors to consider hedging their assets.
4. Geopolitical Implications: The evolving political situation in Ukraine and its portrayal by mainstream media have broader implications for US foreign policy and economic strategies.

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This episode of Bannon’s War Room provides a thorough analysis of President Trump’s economic policies, the challenges within the Federal Reserve, and the broader implications for American economic sovereignty and global financial dynamics. Listeners are encouraged to engage critically with these insights to better understand and navigate the current economic landscape.

Transcript

[Steve Bannon]

Versus 2.5 and Trump and Powell both.

[David Malpass]

Went back and forth on that.

[Scott Bessen]

The headquarters. The headquarters is three buildings. The two that are still in progress are the Eccles and the one that's next door to it with the tunnel. Right. That is a 3 billion dollar and counting project that started at 1.8. It is massively overrun. It's massively overrun. If you take just the two buildings, nearly a billion dollars of cost overrun. That information search is going. We still want to get to the bottom of the plans that were submitted and how they have changed. Those never came back into the National Capital Planning Commission.

[Unknown Speaker]

I don't even think they know the costs.

[David Malpass]

I don't even think they know the cost.

[Unknown Speaker]

The 3.1 billion is important. There's a cost overrun. You can look. These are the Fed's own internal documents that were FOIAed and are published online. It went from 1.8, 1.9 to 2.5 and down to 3.1 for the capital expenditures within their own budget for the total renovation and build of the complex. So the chair is splitting hairs there when he's saying, well that's this building.

[David Malpass]

Okay?

[Unknown Speaker]

If you take that building out of it, it's still an inflation from 1.4 billion to 2.5 billion. There's no way around it. The cost overrun is massive. That's their own document.

[David Malpass]

This is the primal scream of a dying regime. Pray for our enemies because we're going medieval on these people'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 hearing 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. And where do people like that go to share the big lie? MAGA media.

[Unknown Speaker]

I wish in my soul, I wish.

[Scott Bessen]

That any of these people had a conscience.

[Unknown Speaker]

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. Band.

[David Malpass]

Okay, if we get any breaking news at all and we hope to see some effort today on either the Epstein situation down at Tallahassee and or up in D.C. at Main Justice. And if we get any, because I understand there are things happening with DNI on the this exploding treasonous conspiracy, we'll jump in and do that. We've got some capital markets and economics to go through to understand what's really going on. The deep signal of the economy and I also want to play the Donny Deutsch and the Gregory Meeks, because guys are looking at the polling and thinking downrange, they understand that its affordability and the cost of living and what's happening to the average American right now in the economy. David Malpass, former head of the World bank, under secretary for international finance under President Trump at the Treasury Department the first term. So David, I wanted to play and I didn't want to go back to last night because you saw the laziness of the journalism. But I want to play really the meat and potatoes of what this mess is. And I think it's important on the Versailles on Constitution Avenue. So folks, to make sure you got the right numbers and Russ Vogt and Pulte gave them to you, it is 1.8 billion, which was approved to now 3.1 billion. Now, if you take out the other building of which Trump in the, in the, in the Fed chair got involved and you heard right there, it's still, it's 1.4 billion to 2.5 billion, bottom line, it's a massive cost overrun. And also I don't think they went back to the appropriate committees and to the architect and Capitol and actually walk people through why the why there was overruns. Now people say, well, Bannon, why are you making a big deal about this? A billion dollars, right? They have a trillion dollars worth of losses in their portfolio. Why do you care? And somebody said last night, we're not even funded by the American people. Au contraire. It's important because it talks about a management style, management philosophy. This is why Scott Bessen keeps saying we need to review all of it. We need to review everything over at the Fed needs to be reviewed, needs to go through a strategic analysis of exactly why do you have so many people? What do they do? Who actually runs this operation and what is its purpose? Now, we had Fish back on last night to talk to you about the interest rates and what he feels is a big miscalculation on interest rates, which President Trump continues to hammer. So Malpass, I want to start first because you know these institutions with the kind of management is a bunch of dry rot over in the Fed because remember, we are anti central bank at all. We think the greatest part of this country is when Andrew Jackson shut down the, the greatest economic boom was when Andrew Jackson shut down the, the bank of the United States. And we drafted dinof, got involved in the Industrial Revolution, Manifest Destiny, the Transcontinental railroad. So from 1836 to the formation on Jekyll Island, I think around 1913, 11 or 13 of the federal Reserve was the greatest boom in, in American history on a percentage basis. And now this thing's a mess. Can you give us your observations and analysis, sir?

[Unknown Speaker]

Hi, Steve. The central banks are part of the government, and so they grow just like everything else in the government. And that means cost overruns on buildings. I thought Trump was great yesterday in talking about the specifics of the buildings. You know, he's a superstar on construction. He's also made the point that he knows lots about interest rates, which I think both points are right. I was with him in 2016. I don't know if you were there, there at the Grand Hyatt in New York, where he explained to the, to the crowd how he had built each girder within this, this huge, successful hotel at the center of Grand Central. And so Grand Central Station, the main train station in New York City. So Trump has built things. He knows what the costs are. He pointed out yesterday that, that the renovation of the post office, which I'm very familiar with, my kids would go to it, it was a mess. He came in to the steel and rebuilt it for $250 million. So it's not just a small cost overrun by the Fed. It's huge. But this goes into every part of the Fed. So one of the things I've been trying to do in talking about the Fed is bring to people the magnitude of change that needs to be done in each part of their systems. Their models have been wrong for, for decades. And they give you the wrong answers and they deny it.

[David Malpass]

Okay, let's go. James Fishback started on this last night. He used to make his living being a options trader on interest rates. He's saying the models are antiquated. They got 8,000 people that are working on these things. But he says that they're, they're seriously wrong. And this is one of the reasons that interest rates are being held so high by, according to President Trump. Too late. Powell, give us your analytical. Why do you say the models are wrong? And if they're wrong, why are they wrong and what should we do to.

[Unknown Speaker]

Fix them in every way. And I think it's important, you know, the whole world system is going to try to get Trump to think it's an incremental change that's needed. It's not just a regime shift, not just new people that need to come in. It's a whole remaking of the way the Fed thinks about inflation. Let me give you an example. Right now, housing Prices and rental prices nationwide are coming down. But the Fed keeps, including in the PC deflator the core index that it uses this idea that they're up big time, year over year. So that gives them too high an interest rate. When they do inflation targeting. They have another model called ample reserves where they think they should give the banks all the reserves that they need. Remember the Fed charges, excuse me, pays. The Fed has already paid banks $1.3 trillion in interest costs since they started this system of borrowing from the banking system. So the public has this impression of the Fed being a good guy because they print money. That's not what they're doing at all. They borrow money and they pay top dollar for it. And that crowds out all the small businesses around the country so that short term interest rates are too high. And President Trump was exactly right yesterday talking about the mortgage rates being too high. And that's I think because the Fed really is working the whole system for the elites. This is a global brotherhood that wants to keep rates high because bank make a lot of money from it. And Wall street, of course, you know that system, I mean people are getting rich off the high rates that, that the Federal Reserve pegs. And the data is just wrong. Housing is, is causing them to be. They're saying inflation is too high. They just have the wrong data. I've been writing about this for 20 years in the Wall Street Journal. Their models are wrong.

[David Malpass]

What can we do? You're saying it's a global brotherhood. You mean the central banks draft off what the Fed does? So the bank of England, the European Central bank, the bank of Tokyo, the Chinese Central bank, those, the big kahunas, all draft off of what the Fed does. So they're all in this together?

[Unknown Speaker]

That's right. They go to the same schools, they have the same professors doing their thesis. And that gives them a collegiality. You go to the international conferences and what you, what you see people saying is that there's, that the public is consuming too much. We've got to get them to stop. We need to set high interest rates. They have the Phillips Curve model, which is the idea that if people are getting jobs, they're going to ask for rate wage increases and that's somehow bad. Remember the whole goal of a good Trump policy, you know, the forgotten man policy is that we want real wages to go up. We want wages to go up faster than inflation. Biden had the opposite going on and people were getting poorer. And so Trump comes in, says I want wage growth. And the Fed's going to step right in the way of it and squash it.

[David Malpass]

How's that going to happen? Because real wage growth is one of the keys to, is one of the key, I say, on a dashboard, to see if your policies are having an impact among the working and middle class. So how, how's the Fed going to step in the middle of that?

[Unknown Speaker]

That they use an inflation model that's based on this wrong housing data. It's based on the inflation expectations. I'll give you. Let me, let me explain that. The Fed says to the public, we're really worried about inflation. Then they take a poll of the public and say, what are your inflation expectations? And the public says, I'm worried about inflation. And so then the Fed says, aha, we need higher interest rates. We need to keep our interest rates up to protect you. So it's a circular process that's been, that goes on worldwide. It keeps the rates high and it keeps the elites employed. The Fed has this, I don't know, some people say it's 50,000 people working for them. I led a big organization, the World Bank. I tried to limit the amount of damage. It had 20,000 people. We thought that was way too many, too many buildings. But the Fed is bigger and the world brotherhood is stronger when it comes to central banking. So we need to be thinking more in terms of a full upheaval. This is not regime change. It's not incrementalism. It's a full rewrite of how the Fed interacts within the government and how it, how it thinks about what its job is. That the. President Trump has been really clear on the mission that, that we, we need lower interest rates to get more production. The supply chains running that will bring down inflation. And it's a virtuous circle. And the Fed right now just rejecting that.

[David Malpass]

So President Trump reaffirmed yesterday that he's not going to remove Powell, although there's a lot of looking into this building and the overruns. And was it all straightforward? Since Powell is going to be there, there won't be these types of changes. Scott Besson's arguing for this fundamental strategic review. I guess as you are, I want to hold you through the break, but the two minutes we got. When you say upheaval in total restructuring, particularly how it interacts with the government, what do you mean?

[Unknown Speaker]

Downsizing the personnel, downsizing of the balance sheet. Lower the lower interest rates that are paid to banks so you save some for the public. Lower interest rates that they peg that they target. And so you need models that are honest about inflation so that you can get there. I think also looking at the dollar and saying we're going to have the the reserve currency of the world so that's going to invite money into the US so we shouldn't have to pay so much for money. Trump was dead on on that yesterday pointing out we shouldn't be paying more than weaker countries.

[David Malpass]

David Hanger for one second birchgold.com into the dollar/bannon into the dollar empire. You get access to Philip Patrick and his team. I think we did the most sophisticated job including Bloomberg and CNBC of coverage of the BRICS gathering down in Rio. The Rio reset We unearth these kind of bilateral deals where they want to start the process of de dollarization. This is one of the reasons President Trump hit Brazil with a 50% tariff. I would say 30% of that was about Bolsonaro. 20% of that was Lula smack talking the dollar. President Trump dropped the hammer. Understand why. Take your phone out and text Bannon B A N n o n at 989-898 get the ultimate guide that happens to be free for investing in gold and precious metals in the age of Trump. Also you get the end of the dollar empire. You get to ask us to fill a petri and Phil will be on shortly. Most importantly you'll start to know it's.

[Unknown Speaker]

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[David Malpass]

It's about the process of the value of gold. Why it's a hedge for 5,000 years of man's recorded history. Learn that and understand the world. Short break.

[Unknown Speaker]

This July there is a global summit of BRICS nations in Rio de Janeiro. The block of emerging superpowers including China, Russia, India and Persia are meeting with the goal of displacing the United States dollar as the global currency. They're calling this the Rio Reset. As BRICS nations push forward with their plans, global demand for US dollars will decrease bringing down the value of the dollar and your savings. While this transition won't not happen overnight.

[David Malpass]

But trust me, it's going to start in Rio.

[Unknown Speaker]

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[David Malpass]

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[Unknown Speaker]

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But you make a hell of a lot more money with a weaker dollar, not a weak dollar, but a weaker dollar than you do with a strong dollar. And the first people that are going to notice it are the manufacturers of RUPs and various other things, like look at Caterpillar, how well they're doing.

[David Malpass]

Now.

[Unknown Speaker]

When you have a strong dollar, you can't sell anything. It's only good for inflation. And it's good psychologically. It makes you feel good. But with that being said, I love strong dollars, but you make your money with a currency. And I had so many different fights with President Xi with, I mean, between Japan and China, all they want to do is have a weak currency. They're always fighting for a weak currency. And that's how they really dominated over the years. So when I see it down there, I don't lose sleep over it, let's put it that way. In fact, sometimes I go to sleep very happy. You understand? Do you agree with Zane? I agree with a lot of what you said, Mr. President. Do you think it makes any easier to impose your tariff with that lower dollar? Because the. I think it makes it easier even for tariffs. Yeah. And it makes the tariffs worth much more. And it's easier to pay off debt and it's easier to get a low interest rate. There are a lot of good things. It's hard to explain to people. The headline, oh, Trump wants a weak dollar, not a weak dollar. I we you take a look at the history of China over the last 20 years. All they do is fight for a weak currency. Look at Japan, when they were really doing well, they had a very weak currency. So to me, I just say, thank you very much. It is what it is.

[David Malpass]

Okay, President Trump, 40 minutes today. Come one, come all. Take your best shot. Right. From Epstein to North Carolina politics to the education to the, to the really getting the mind right of the Ivy League school starting at Columbia and the Columbia president. There was an interview, she said it's not about $200 million. She actually said the. It's billions and billions and billions of your tax dollars going to these universities for research, quote, unquote. Right? But they've become, you know, centers. They're really PACs. They're really, PACs, they become centers for this neo Marxism radical jihad that you're seeing the Red Green alliance coming out of these Ivy League schools. Columbia, I thought the deal was great. It's unique. We'd like to add a couple of zeros onto it, but it's the start of a process and they're bending the knee. David Malpass, you've been head of the World Bank. You were also under Secretary for international finance for President Trump. In the first term, and I think it's pretty well known in the first term, you were one of the big brains over there. At least analytically walk through what the President's talking about in perspective of exactly what his economic strategy is today. Sir.

[Unknown Speaker]

A couple of points, Steve. One is I'm amazed at the President's energy. So as you look at that, he's working in all these areas and causing change. So his strategy is really clear. We're going to have domestic manufacturing in the US So then what he was talking about there on the dollar, I thought was, okay, Remember in the Clinton administration, we had this idea that strong dollar is in our national interest. I wrote a lot that was wrong because it caused deflation and it made us uncompetitive. So I think he's, he's pushing back on that and saying that's not what our policy is. And then he said very clearly he'll never be known for a weak dollar either. So if you look out 50 years from now, I think what, what can be created here is a stable dollar that pulls money into the United States. It's the crypto currency king. You know, the dominance in cryptocurrency is going to be super valuable for the United States based on stable coins and stable dollar coins, US Dollar coins that protect us. And so he was square in the middle of that, that, and he's right that that will allow interest rates to fall. So that the whole economic program is that you're going to allow people to, to produce in the United States and not subsidize the foreign production, which is what we've been doing with a broken trading system. Fix that, fix the regulatory policies, fix the border. And I think we have to have just as big a change at the Fed. It's the, not a regime change. It's a full upheaval where you change every model to be a growth model. The Fed doesn't have to lean against growth. It can actually facilitate small business growth. That's what we need. But it's much bigger than people are letting on right now. It's not just the building and not just the governors. It's the whole way the Fed operates has to be changed.

[David Malpass]

So are you are you calling for President Trump to, you know, you best and some others. Do you think there needs to be a task force like now? Because as you said, it's just not about naming some individual to be the head of the Federal Reserve. You're saying the institutional rot is much deeper than that and particularly the interconnectivity of these other central banks to do that. We don't need to wait till next you know, they're going to name the new Fed a chair in either December, January, February, they will take you know, they'll be go through confirmation and be confirmed and actually step in in June of next year, about a year from now, a little less than a year from now. The you're saying we shouldn't wait for that. We should get on with this right now.

[Unknown Speaker]

I'm skeptical of commissions. I think what Secretary Bessen said is really useful. He's giving a graceful move for the Fed to say, okay, maybe we've made mistakes in the past and we're going to go examine them. You know, one of the problems has been the Fed denies that it's ever made mistakes. And so so I think it would be useful if they started an internal process to review. But I'm skeptical that the people there can actually realize the Fed for all these years has stood for the elite and for austerity. Their balance sheet is made up of them borrowing money from banks to dump into government bonds. What do you think that does to to affordability and to and to the forgotten man, to normal wages of people. They're driven down by that process. I'm skeptical the Fed will admit that, but I think Secretary Besson is exactly right to say to the Fed, you better get on with change because we're going to make it happen one way or the other.

[David Malpass]

David Malpass, where do people go on social media and to get your writings and your thinking, sir.

[Unknown Speaker]

Thanks, Steve. David On Twitter it's at sign David R. Malpass and so I write a lot in the Wall Street Journal, used to write in Forbes magazine. So I've got a big record of explaining why the Fed models are hurting. And I think they hurt Obama, they hurt Clinton, you know, it's and they hurt Trump, obviously, in 2018 and 19. They're wrong often and they're always lagging.

[David Malpass]

Too late, pal, as the president calls him. David Malpass, thank you for coming on, brother. Appreciate you.

[Unknown Speaker]

Thanks, Steve.

[David Malpass]

Philip Patrick man have the only, the third trip ever to the Federal Reserve by a sitting President Roosevelt went to, I think open for the ceremony that opened the Eccles Building, which is a architectural masterpiece. Jerry Ford went over there because I think he was a buddy of one of the governors. And now President Trump went over a building inspection and a chat with the, the head of the Fed. Your observations of yesterday, before we get into both Fishback and, and Malpass are telling us the models are totally wrong. What's your observation of what happened yesterday?

[Philip Patrick]

Look, obviously there's a standoff happening between the Fed and the administration and you can see why. Right. Trump's claiming, and I think there's some truth to the claim that the Fed is sabotaging his economic recovery. His plan needs lower interest rates. We have to boost economic growth and we've got to manage the growing debt burden. On top of that, there seems to be a political angle here. Right. Let's not forget the Fed lowered interest rates three times under, under Biden in 2024 when inflation was running higher than it is today. Jerome Powell sitting back and saying, look, I'm doing my job. Inflation's above my target. Employment's historically lower. Unemployment rather. So we're seeing this standoff which isn't unusual. What's unusual on this occasion is the Gulf in positions right pound saying the Fed Fed rates are good at 4.25%. Trump's looking for a 300 basis point rate cut, which is, which is significant. But listen, things are heating up. One thing I would say, and I think the administration are sort of echoing this, I don't think firing power is going to be the move. Right. Central bank independence is very, very important. I think Dan Ivickson gave an interview yesterday with the Financial Times stressing that I know that Jamie Dimon's done the same thing. So we're in a tough position. We'll see how it plays out. I think we need a change in the Federal Reserve, but I think we're going to wait and see, see what happens come May of next year.

[David Malpass]

But Bessant and Malpass are talking about something very different. They're not talking about just replacing a person. And there's rumor out there that, you know, Bessant may be dual hat. Maybe he gets offered the Fed chair, maybe step side of treasury, maybe wears both hats on an interim basis. So he's a lease in the running. There's always discussion about Malpass maybe going back to Treasury. So these are two guys that have been. Malpass had one of the senior jobs in the first term and then was head of the World Bank. You had obviously Scott is in the middle of it. They're saying something different, Patrick. They're saying, hey, it doesn't matter who you put in here. You need a fundamental top to bottom strategic analysis of the Fed restructuring. They're talking about bottom blowing half the people. And you got to get on top of these, you got to get on top of these economic models. Why don't you hang. I'm going to take a commercial break and we're going to go to. I want your thoughts on this because this is inextricably linked to President Trump's economic program. And there's more polling coming out today from Harry Entin. The same President Trump is dropping the polls with independence. One of the reasons is maybe not enough focus on the economy. Now he just passed a big beautiful belt. What I've argued is that yo, the parts of that, that people that are going to impact people's lives immediately, you've got to get out there and you have to message it. You got to be hammering that every day. And I think they're starting this thinking of Las Vegas. Smith at the House and the Ways and Means Committee is going to be out in Vegas doing some messaging. But it needs to be organized and it needs to be relentless. Tulsi Gabbard, the message messaging on the treasonous conspiracy boom every day, you got to hit it. And on the economics and affordability, you have to hit it. I tell you understands this is smart Democrats, they understand this. Right now I'm with Philip Patrick, the man at Birch Gold. Take your front at Bannon 989-898. Get the ultimate guide for investing in gold and precious metals in the age of Trump and do it today.

[Unknown Speaker]

Philip Patrick, what if he had the.

[David Malpass]

Brightest mind in the war room delivering.

[Unknown Speaker]

Critical financial research every month?

[David Malpass]

Steve Bannon here.

[Unknown Speaker]

War room listeners know Jim Rickards.

[David Malpass]

I love this guy.

[Unknown Speaker]

He's our wise man. A former CIA, Pentagon and White House advisor with an unmatched grasp of geopolitics and capital markets. Jim predicted Trump's Electoral College victory exactly 312 to 226, down to the actual number itself. Now he's issuing a dire warning about April 11, a moment that could define Trump's presidency and your financial future. His latest book, MoneyGPT, exposes how AI is setting the stage for financial chaos. Bank runs at lightning speeds, algorithm driven crashes and even threats to national security. Right now, war room members get a free copy of MoneyGPT when they sign up for Strategic Intelligence. This is Jim's flagship financial newsletter, Strategic Intelligence. I read it.

[David Malpass]

You should read it.

[Unknown Speaker]

Time is running out. Go torickards war room dot com.

[David Malpass]

That's all one word.

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[David Malpass]

Records with an S. Go now and.

[Unknown Speaker]

Claim your free book. That's Rickards War Room. Your host, Stephen K. Band.

[David Malpass]

So Philip, the models. The Fed does need restructuring. What's your thought? I mean, do we. Two thirds of our audience is like, what in the hell? We even need a Fed? And then we have Malpass saying, hey, it's all a central bank cabal. They all know each other. They go to the same schools, they have the same professors, they vacation the same spots. They're kind of running the world. Why do we even need this? I mean, Andrew Jackson, if you go back and read the Age of Jackson, I mean his number one thing is boom. Hey, no bank of the United States. It's just going to lead to corruption and greed and taking power away from his populist movement. I mean, it's one of the reasons they stole the first time he won and they did steal it that, you know, it was on this very issue. So I mean, we need a restructuring. I mean we think that. I actually think you can actually work to get do away with it. Your thoughts, sir?

[Philip Patrick]

Look, the Fed has just been a very ineffective institution since inception and it's been very bad for the middle class of America. Since the creation of the Federal Reserve, we've seen the middle class of America essentially dispute, disappear. They've also been a terrible steward of dollar value. Right? The Fed's official inflation targets 2%. The long term average has been 4%. Meanwhile, the Fed owns about 15% of all government debt. I'm not sure we need a Fed if we have intrinsically valuable sound money. At that point, the need for a central bank or a Federal Reserve starts to disappear. But again, they have been very, very, very poor at their job since inception, I think, Mr. Malka.

[David Malpass]

But isn't that the argument, isn't that the core argument in the central banks? I put this chart up the other day of the, of the Chinese dumping US Bonds and buying gold. I mean, don't the central banks the reason they been buying gold at record rates? And you don't have to look, Philip Patrick and Steve Bannon did not start as gold bucks. We came out of investment banking where the gold bugs were kind of, you know, these odd ducks like Rand Paul and his dad, right? And nobody on Wall street took them seriously until you hit the 21st century. And it became obvious all these. There's been no controls in these legislatures by central governments anywhere. And the whole world's leveraged up. I mean, you're about to have the world's biggest margin call, essentially, gold. The reason gold's been a hedge for 5,000 years is because of people's inability to control themselves anytime they get near a fiat currency. Is that basically the history, the economic and financial history of the world? And that's why gold's always been a hedge?

[Philip Patrick]

Sir, that is exactly. And I've said it many times on the show, but I felt at points in my career that gold was a relic. And what we've seen since 2022 has shown us that that is not the case at all. Right. It's been the relative stability of the dollar over the last 50 years. That for me has been the historical AB. And this is a return to normalcy when it comes to currency. Central banks buy gold to de dollarize today, not just because gold is a better asset, but to protect themselves against dollar weaponization and other things. But we're seeing the first six months of this year gold or central banks have set records for gold buying again. And I think it's going to continue. It's such a tough job.

[Unknown Speaker]

We.

[Philip Patrick]

So David Malpass talking about the benefits of strong versus weak currency. Trump now is touting the idea of a weaker currency because he wants to rebuild the economy and boost manufacturing. But that's going to work against our position as global reserve currency and the dollar strength internationally. So, like I said, we're in a very tough position. It's almost damned if you do and damned if you don't. But I think gold will continue to be the solution for central banks. And they are not letting up in their gold buying up.

[David Malpass]

They're not letting up. And this is the reason that. Look, the purpose of the show is not to teach you. The purpose of the show is to give you access to geopolitics and politics and polling and analysis and capital markets and finance that you can teach yourself because only in learning yourself and going through that process to get your mental maps, like riding a bike. Oh, okay. It's so hard at first, you don't get it and then all sudden, boom, I get it. You know this in things that you've studied before, it's so foreign, it's so difficult. You don't understand it. Then you have that boom, that moment of clarity that you say, God, I understand it. You've got a mental map. Once that happens, your life changes. Just does. This is why we've partnered with Birch Gold over the years. And this is why Philip and I and the team at Birchgold four years ago said, hey, let's, let's go. Let's take the currency, let's take the dollar as the prime reserve currency and walk through them over a number of years of what's happened here. And that's the key. The dollar is what we've. The dollar is what deteriorated 11% in the last six months. Is my math correct on that?

[Philip Patrick]

Absolutely correct. Yeah. Worst start of the year since the 70s worse.

[David Malpass]

So folks, that's why and I keep talking about this, it's not the price of gold. It's the converging forces that drive the value of gold that gets to the price. That's what you have to understand. You have and you've got to. We provide all the information, but you've got to go in and struggle with the material. You're going to have to. We make it very accessible. The great letter we got from the University of Arkansas, as soon as school starts back up, I want to get that professor on Philip, Patrick. The guys at the central banks that all went to Stanford all went to Harvard. They all have an HP12C, the basic union tool. Can't get my clock there. Right there. Some juice in it. Thanks. They're buying gold for a reason. They're buying gold for a reason. These people are not dumb. They're quite smart. Whether it's sub Saharan Africa, South Asia, East Asia, Latin America, there are plenty of smart people out there that are running their own models and their own perturbations. And you see these central banks buying it with both hands. It's time for you to now to learn why they are doing that. We're not telling you run out and buy gold. But to find out why they're doing that. Once you understand that, you'll be able to take care of yourself and the guys that take care of with is Birch Gold. How do people get to you, Philip? You're kind of a. I get so many compliments all the time of you and the team over there. So where do people go?

[Philip Patrick]

Very simple. It's birchgold.com forward/bannon Again, birchgold.com forward slashbannon. That'll get them access to all of the free reports, all of the information. They can also text Bannon to 989-898. They'll get the same information and they can reach me at Philip Patrick on getter.

[David Malpass]

So we're going to have a number of people like the Malpasses and the Fishbacks. Tomorrow we got Judy Shelton, former Fed official. She's going to be on Phillip's going to join us back on Monday to break down everything Judy says. So because the situation of money in currency, in gold, in geopolitics and capital markets is about to become even more important than it has been over the last couple of years. And we want to make sure the war on Posse is at the cutting edge of that. Philip, thank you so much and thank you for all the work you guys do put in together. We got the eighth free installment we're working on even as we speak on the End of the Dollar Empire. Hopefully have it out in in the not too distant future. Philip, thank you so much.

[Philip Patrick]

Thank you, Steve.

[David Malpass]

Birchgold.com promo code Bannon end of the dollar empire, the first seven installments free. Working on the eighth. And also a big announcement about that entire series when we get back from Labor Day, where you've also had impact in Marjorie Taylor Greene. So, so Harnwell, these kinetic wars, particularly when the Middle east is heating back up the situation in Gaza. Also, there's renewed emphasis of regime change in Persia that we're going to be all over, make sure we don't get sucked into that. But the Ukraine situation, and you can tell President Trump increasingly frustrated about what's going on. But a quite interesting development over the last couple of days. And that is where the folks in Ukraine themselves, Zelensky, what they're trying to do is make sure that they're not accountable at all to the money that's been stolen. Right. And they want more money over there. And so what's happened in the streets of Kiev over the last couple of days, sir, that's kind of changed at least the political direction a little bit.

[Steve Bannon]

Morning, Steve. Well, if Denver would be kind enough to play some of the footage and I'll talk over the back of it, really. Since 22 July, Ukraine has seen seen some of its worst protests against the government since Russia's invasion. And that's not unusual in and of itself because under the martial law that Zelensky declared basically on the same day as the invasion protests, public displays of opposition to the government are prohibited. So it's not so much the numbers to concentrate on. And it was actually a growing protests over a couple of days, about 2 to 3,000 people all told, outside the presidential palace. It's the fact that these protests took place. Anyway, Steve, my look, I've got some headlines here. If Denver would be kind enough to play those as I'll talk over the top of them. What struck me about this, Steve, was that I had a sense of deja vu. And it reminded me of basically 18 months, 12 months ago, when every day I was coming on this show and I was saying, look, this is the mainstream media running one anti Biden headline after another. They are performing a discard. They are getting ready to throw the person that they themselves created under the bus because he no longer is the instrument for their agenda. And it's exactly the same thing now that we see in Ukraine just In the last 24 hours, this string of headlines. I'm going to read them out myself. But this is Main street msm. It's mainstream media. So you've got this thing here in the Daily Telegraph saying Zelensky must go for the sake of Ukraine. You've got this thing in Politico, and you gave a brilliant quote to Jamie Detmer in that article. Ukraine's insidious enemy, its own leadership. And then there's another article here in the ft, the polarizing power of Andre Yermak, Ukraine's other wartime leader, who'd up until this point had only received Zelenskyy's chief of staff, up until this point, he'd only received plaudits from the international media for his authoritative, centralizing presence behind President Zelenskyy. My takeaway, Steve, is this. And the war room should be very, very attentive to this. The reason the mainstream media, which is simply the stenographers for the powers that run this world, the reason that they now are starting to suffer really quite visibly from Zelenskyy fatigue, is not that they want this war to finish, they want it over. What they are doing is that they made the calculation that Zelenskyy is now inimical to their agenda of keeping this war going. And they're trying to do a discard on Zelenskyy to get rid of him and bring in General Zaluzhny, who's currently in London as the ambassador. And I flagged this up for the war. Impossible.

[David Malpass]

Whoa, slow down. Slow the train down. Because this is the guy that Zelensky got out of the country to go to London because he didn't want to be overthrown a year and a half ago, remember?

[Steve Bannon]

Yes, that's exactly him. War hero, very widely respected, especially by the armed forces. And that was one of the things that was why Vicky Nuland, of course. Yeah. I don't know why we don't have the papers now, why we can't get access to these documents now. But that's why she flew there and gave that impromptu press conference at 24 hours notice. Basically because the military were getting ready to get to overthrow Zelensky Zelensky and bring in Zelensky. Victoria Nuland tampered that down, sought restabilized Zelenskyy's regime and Zaluzhny was exiled to London. So there was a maneuver now to get it's very popular, has higher ratings than Zelenskyy. It's one of the reasons why we're not going to see presidential elections in Ukraine. And I flagged this up for the war room posse. Right. However much you think and I really can't stand the fact that Zelenskyy went over to the, to the Oval Office, was invited back after this thing but I put my personal opinions to one side on that. But however you might feel about Zelensky sort of worming his way back in, if you want this war to end, the last thing you want to see is General Zaluzhny, the war hero with full military shmuta going over to the White House asking for more money because he will most likely get it. And we want this war to over. We want it to finish sooner rather than later. But I will furthest point out Steve, there's two things I tell you what. President Trump.

[David Malpass]

Ben, Ben, Ben, hang on one second. Just, just hang on. We're going to bring you back after the break. Monday's Texas day. We need to get focused on Texas. Texas, if Texas is ever goes purple. End of the country Texas is the railhead of the MAGA movement. If you're a homeowner, you need to listen to this.

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[David Malpass]

Do it today.

[Unknown Speaker]

Here's your host, Stephen K. Band.

[David Malpass]

More details tomorrow about what we're going to do on Monday. We got to get the situation in Texas sorted. 972 Patriot Patriot mobile call. Talk to a US rep today about making the switch to the best service company for its cell phones in the country. Your mobile phone, this is the best. They support all your values but it's also the best service. 972 Patriot make the switch today when I bring in Trevor Comstock. Trevor, you got a couple of minutes? Talk to me. You're working on so many new things over at Sacred Human Health. What do you got for us this morning, sir?

[I]

Yeah, I appreciate you Steve. So some exciting news. We're officially rolling out a fresh new look on all all of our products. So you'll notice an updated improved design on all of our bottles and labels while still of course getting the same great benefits from all of our products. So this has definitely been a long time in the works. And in honor of the new rollout we're doing a 20% sale on our grass fed beef liver which we just extended through the weekend. So just make sure to use code Human that's hum a n at checkout on any one time order. So just wanted to quickly mention that. But also going off that I know many people still aren't familiar with the benefits of beef liver and we still get a ton of messages from people kind of asking, you know, what's in it and what, what would make it beneficial for someone. But in short, beef liver is arguably one of the best sources of highly bioavailable nutrients. So it'll include things like vitamins, minerals, coenzymes, amino acids as well as peptides. And I've said it before, but I've always liked to just make the simple analogy that beef liver is essentially nature's multivitamin. So, so you'll get a wide array of vitamins and nutrients such as iron, zinc, vitamin A, B12, CoQ10, folate. The list kind of goes on and on. But these will all compound to do things like help promote healthy skin, hair, heart, immune system as well as brain function and Then on top of that, beef liver also contains many other critical vitamins and minerals that most people are deficient in. So things like Selenium K2 as well as copper and choline. And then of course, you can sift through some of our reviews. But people always just rave about the natural energy boost that they get after taking the beef liver, always an added plus. And then I always like to mention too, that on top of it, aside from it being 100 grass fed and natural, is that the body can much better absorb these nutrients as opposed to taking like a man made synthetic multivitamin where oftentimes your body will just flush out those nutrients. So I won't go on for too long. But again, you can use Code Human at checkout for 20% off our grass fed beef [e-mail].

[David Malpass]

Perfect. And check out all the endorsements from your fellow compatriots. That's what we want. We want people's feedback and they absolutely love it. Trevor Comstock, a great job. Founder and CEO of Sacred Human Health. Brother, thank you. Coming on here on a Friday morning in July.

[I]

Thanks.

[David Malpass]

Actually, towards the end of July, it's so shocking how quickly it's going by.

[Unknown Speaker]

Ben, you've got the six, I got the five.

[David Malpass]

You got the six tonight. I want to thank you for staying up late and we're going to continue this tomorrow. I think I've got to break some time. There's a lot going on in Europe, there's a lot going on in the situation in Ukraine, but you've nailed it. If you do the switch, as much as we detest Zelensky, if you do the switch out now, you're talking about a longer war because the war hero and the general come back and, and he'll take, he'll take over and you're in for a long conflict. And what President Trump wants to do in the United States is have this conflict end as quickly as possible with no more American commitment. Harnwell, where do people go on your social media between now and your Hosting tonight? The 6 o' clock hour, sir, on.

[Steve Bannon]

Getter at Harnwell, which is my surname. Steve, give me 20 seconds. Right, because there are two things President Trump can do to leverage his influence over Zelensky at the moment. Let's get the facts out regarding the biolabs and let's get the facts out regarding the Joe Biden vice president Joe Biden's firing of Victor Shokin, who was the prosecutor who was fired for investigating Burisma, the Boisma Payments to Hunter Biden.

[David Malpass]

Right.

[Steve Bannon]

President Trump has all the cards. Zelensky has none. Let's get to the bottom of this. Thanks, Steve. God bless. Catch you. Yeah, catch you tomorrow.

[David Malpass]

We're going to do that tomorrow. Thanks for taking the six tonight. So much to cover in that vertical. I'm gonna be up and get her all afternoon. There's stuff breaking back here at five o' clock tonight. Charlie Kirk takes it up from here. Then poso Steve Gruber, Eric Bowling. I plan to get the show more organized today, the five so we can do the handover. Love doing the handover with Eric. Eric and I are also working on a big project. We'll talk to you more about hopefully next week. Mike Lindell. So, yes, also make sure you go to get her. I'm going to be up all afternoon. There's so much going on we couldn't even get to in the two hours a day. That's where we get two hours. This afternoon, the 5:00 clock shows me on fire. And then tomorrow, Judy Shelton is going to join us and much, much, much more. We're getting more of the Tulsi Gabbard. I think we have some news to break down this afternoon. If everything works according to plan and then more even tomorrow. And of course, Todd Blanche, I'm sure we'll get some sort of readout of this really extraordinary second day with Maxwell down at the down at in Tallahassee. Mike Lindell, you've been let loose in the imperial capital. How's it going, sir? I assume it's going okay.

[J]

Yeah, it's going great. We're actually leaving Washington, D.C. today and what a couple days it was. And you guys at the War Room Posse, you've made it possible that we're even around to be able to win this big appeal we just won two days ago. The news went out to 56 countries and everybody reported except for Fox News, of course. They didn't report it. But you guys, I want to thank the War Room Posse with our biggest sale yet. People come all over the country to go to Minnesota to go to our outlet store. And I said, you know what, why not reward the War Room Posse with an outlet sale? Everything that's in our outlet store, you guys are going to save up to 80% products you've never even heard of before, like our clothing line, our kitchen line. So go to mypillow.com you guys, scroll down, click on. See, there he is right there. Then click on that outlet sale and you're going to click on that and you're going to scroll down. You're going to see closed out products, products that we have that we're overstocked on. You're going to see products we don't even, we don't even have up on the website because we're the. They are very unique products for your house. But you guys do all your shopping there on this great outlet store sale with promo code war room. Call 800-873-1062. And Steve, I can't thank the war room posse enough to keep us in the fight because we're going to keep winning, winning, winning. Promo code, war room, everybody.

[David Malpass]

The best promo code out there. MyPillow.com promo code worm Lindell. Be with us in the five o' clock hour, Mike. Thank you. Let's go back to work. Mike Lindell loose in the imperial capital. We're going to leave you with the right stuff if you get a chance over the weekend. I was just talking to somebody actually during the show. This is one of the most extraordinary movies I think in American history. You want to talk about America at the top of her game. The greatest country in the world. The greatest country in the world's history. The 1950s and 60s and the space program and the test pilots. Chuck Yeager and these guys. A magnificent film.

[Unknown Speaker]

A masterpiece.

[David Malpass]

A masterpiece score. A masterpiece book by Tom Wolf. The right stuff. We'll leave with that. Charlie Kirk is next. A real America's voice. Hey, I realize you got many choices when it comes to who you choose for your cell phone service. And there are new ones popping up all the time. But here's the truth. There's only one that boldly stands in the gap for every American that believes that freedom is worth fighting for. And that's the team at Patriot Mobile. For more than 12 years, Patriot Mobile has been on the front lines of fighting for our God given rights and freedoms while also providing exceptional nationwide cell phone service with access to all three of the main networks. Don't just take my word for it, ask the hundreds of thousands of Americans who've made the switch are now supporting causes they believe in simply by joining Patriot Mobile. Switching is easier than ever. Activate in minutes from the comfort of your own home. Keep your number, keep your phone or upgrade. Patriot Mobile's all US based support team is standing by to take care of you.

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[David Malpass]

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