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)
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.
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.
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 They argue that the Fed’s outdated models are failing to address present economic realities, particularly concerning inflation and interest rates.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]
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]
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.
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.
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.
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.
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]
Key Takeaways
- Federal Reserve Critique: Significant cost overruns and outdated economic models within the Fed hinder economic growth and disproportionately affect the middle and working classes.
- Economic Policy Reform: Comprehensive restructuring of the Federal Reserve is essential to align its operations with growth-focused economic strategies.
- De-Dollarization and Gold: Global shifts away from the US dollar towards gold highlight the need for American investors to consider hedging their assets.
- Geopolitical Implications: The evolving political situation in Ukraine and its portrayal by mainstream media have broader implications for US foreign policy and economic strategies.
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.