Bannon’s War Room – Episode 5242: America Is Closing In On A Fiscal Cliff
Date: March 24, 2026
Host: Stephen K. Bannon
Notable Guests: Neil Irwin (Axios), Michael Kunstler, Holly Kessler, Ying Chen (Shen Yun Performing Arts), Levi Brody

Episode Theme & Overview

This episode of War Room centers on America’s impending fiscal crisis—often referred to as the "fiscal cliff"—and explores the political, economic, and social ramifications of unsustainable federal deficits. Stephen K. Bannon is joined by economic journalist Neil Irwin, who outlines the dangers of entrenched government debt, lack of political will to solve it, and the risks facing Social Security and Medicare. Other sections dive into grassroots activism in election integrity (Georgia and Virginia), the suppression of traditional Chinese culture and Falun Gong by the Chinese Communist Party, and the media’s complicity.

Key Discussion Points & Insights

1. America's Fiscal Cliff – A Looming Crisis

Guest: Neil Irwin (Axios) Timestamps: [00:02] to [13:36]

A. The Scope of the Fiscal Problem

• Unprecedented peacetime deficits: “We’re running deficits about 6% of GDP. That’s the largest we’ve ever seen other than in major wars, financial crises, depressions, recessions.” (Neil Irwin, [02:10])
• Unsustainable trajectory: “If you get the deficit to 3% of GDP, that’s manageable. We’re double that.” (Neil Irwin, [02:27])

B. Lack of Political Urgency

• Both parties are incentivized to ignore the problem—Democrats push more spending and tax cuts; Republicans rarely enforce spending discipline.
• “You see it on both sides of the aisle...there’s not a lot of incentive and urgency around in Washington that these deficits are unsustainable.” (Neil Irwin, [02:50])

C. The Entitlements Time Bomb

• Social Security and Medicare trust funds are projected to run dry by 2032–33.
• “If they don’t do anything, there’s a 25% cut to Social Security benefits. That would be catastrophic. That would be bad for a lot of retirees.” (Neil Irwin, [08:36])

D. Market Impact and Reserve Currency Dynamics

• Despite massive debt, markets haven't forced change: “As soon as the guns start firing, they all come to the U.S. Dollar...” (Stephen Bannon, [05:22])
• Interest costs are compounding: by 2035, nearly 5% of GDP may go solely to interest payments, crowding out other spending. ([05:54], [06:23])
• “If the bond market starts to freak out…no guarantees that’s the case.” (Neil Irwin, [05:54])

E. What Could Spark Real Action?

• Commissions and reports have historically been ignored unless catalyzed by crisis or spikes in interest rates: “If there’s not a crisis moment, why would you make that unpopular vote?” (Neil Irwin, [08:09])
• “If these [yields] go to 5 or 6%, mortgages pop at 9 or 10%—that’s when the folks back home start burning up the phone lines…” (Stephen Bannon, [09:07])

F. Economic Growth or AI as a Lifeline?

• The nation is a “leveraged bet on artificial intelligence.” (Stephen Bannon, [10:12])
• “If you take out investment in software, investment in data centers, it’s basically flatline—we’re treading water.” (Neil Irwin, [11:08])
• The hope is a productivity surge from AI; the risk is mass job displacement for young workers.

Notable Quote:

• “We are like a highly-leveraged buyer—a highly-leveraged play on artificial intelligence right now. Is that not the business model of our country?” (Stephen K. Bannon, [10:12])

2. Election Integrity and Grassroots Political Action

Guest: Holly Kessler (Georgia grassroots activist) Timestamps: [24:15] to [31:33], [46:42] to [47:03]

A. Georgia & Election Systems Crisis

• Ongoing legal battles over voting machine integrity—QR codes still not banned despite legislation.
• “We are in a very critical emergency situation…machines really, they just, they got to go. President Trump wants it… The grassroots in Georgia dominate.” (Holly Kessler, [24:15]–[26:15])
• Political class is unresponsive or “missing in action” on election reform: “It’s very frustrating… all they’re wanting to do is continue to kick the can down the road.” ([24:15])

B. National Implications

• Upcoming evidentiary hearing in Fulton County, seen as pivotal for uncovering issues in the 2020 election.
• “This stinks to high heaven. This 2020 election was stolen. There’s no doubt about that.” (Stephen K. Bannon, [31:03])

C. The Power of Grassroots

• Positive polling trends in Texas and Virginia attributed to grassroots momentum.
• Shout-outs to activists for relentless efforts despite personal threats.

3. CCP Suppression of Shen Yun & Falun Gong

Guests: Ying Chen (Shen Yun), Levi Brody Timestamps: [32:21] to [43:12], [47:06] to [52:27]

A. Shen Yun’s Mission

• Shen Yun is an American performance company reviving traditional pre-Communist Chinese culture.
• “Our mission is to revive our authentic traditional culture which has been suppressed by the CCP for decades.” (Ying Chen, [32:21])
• Performances include content on current human rights abuses and the persecution of Falun Gong.

B. CCP’s Transnational Threats

• Bomb threats to venues and foreign heads of state to prevent Shen Yun performances.
• “We have faced bomb threats for so long that we've almost gotten used to it, which is not right.” (Ying Chen, [32:21])
• The CCP tries to dictate narratives globally, even in Western countries.

C. Western Media Complicity

• “Major media companies have gone out of their way to suppress this story.” (Levi Brody, [37:50])
• Brody analogizes the media whitewash to The New York Times’ coverage of the Holodomor, stressing neglect of CCP atrocities and forced organ harvesting.

D. The Importance of Cultural Truth

• Shen Yun’s tagline “China before Communism” is a direct rebuke to CCP propaganda.
• “I grew up in China and I had no appreciation of the Chinese traditional values and culture when I was there until I came to this country and learned the truth…” (Ying Chen, [51:07])

Notable Quotes:

• “The pure fact that in the show… we are not shy about telling people that people of faith are still being persecuted in China to the extent of taking organs from live people… it’s unspeakable crime.” (Ying Chen, [42:11])
• “There is a systemic failure at the New York Times… when it comes to Falun Gong specifically. That is undeniable.” (Levi Brody, [41:25])

4. Other Noteworthy Segments

• Grassroots Victories: Bannon spotlights successes in Texas (Ken Paxton poll leads, Prop 10) and Virginia (self-organized grassroots overtaking the political establishment).
• Medical Freedom & Pharmacy Services: Michael Kunstler discusses All Family Pharmacy's focus on patient autonomy and the shortcomings of “Big Pharma” and chain pharmacies ([18:20]–[21:54]).

Memorable Moments & Quotes (With Attribution)

• Fiscal Cliff Reality Check:
  “We’re about to have a $200 billion Defense Department request for the Iran conflict...from the way people talk about financial options in Washington, you wouldn’t guess that we’re facing this real cliff.”
  —Neil Irwin ([03:56])

• Roots of the Debt Crisis:
  “The discourse wouldn’t reflect it… this is a here and now kind of problem.”
  —Neil Irwin ([03:56])

• Betting on AI for Rescue:
  “We’re like a leveraged buyer…on artificial intelligence right now.”
  —Stephen K. Bannon ([10:12])

• Grassroots Power:
  “I cannot compliment enough the grassroots effort in Virginia and the Commonwealth…overwhelmed with money spent, they’ve self-organized.”
  —Stephen K. Bannon ([25:30])

• CCP’s Attack on Cultural Truth:
  “We have been under attack for the last 20 years. We have faced bomb threats for so long that we’ve almost gotten used to it, which is not right.”
  —Ying Chen ([32:21])

• Media Complicity on Human Rights:
  “There is a systemic failure at the New York Times...they have achieved, wittingly or not, the propaganda goals of Beijing.”
  —Levi Brody ([41:25])

Important Timestamps

• Fiscal Cliff & AI Risk: [00:02]–[13:36]
• Grassroots and Georgia Election Issues: [24:15]–[31:33] and [46:42]–[47:03]
• Shen Yun, CCP, and Media Discussion: [32:21]–[43:12] and [47:06]–[52:27]

Listeners’ Takeaway:
This episode provides a vivid warning about America's mounting fiscal peril and the danger of inaction, elevates the voices of grassroots activists challenging the political status quo, and exposes international repression and media complicity in covering up both China’s cultural crimes and US vulnerabilities.

For More:

• Neil Irwin: axios.com, Axios Macro newsletter
• Holly Kessler: X (Twitter), Facebook, Substack
• Shen Yun Performing Arts: shenyun.com