Podcast Summary: WarRoom Battleground EP 755 – "The Lords Of Easy Money Three Years Later"

Introduction In Episode 755 of WarRoom Battleground, hosted by Steve Bannon from WarRoom.org, the discussion centers around the critical analysis of the United States' industrial and defense sectors. Joining Bannon is Christopher Leonard, the esteemed author of "Lords of Easy Money". Released on April 25, 2025, this episode delves deep into the decline of America's manufacturing prowess, the erosion of its defense industrial base, and the looming challenges posed by global competitors, particularly China.

Section 1: The Decline of America's Manufacturing Ecosystem

Timestamp [00:03 – 01:27]

Steve Bannon opens the dialogue with a strong critique of the current state of American society and media, emphasizing the growing frustration among the populace:

Steve Bannon [00:03]: "This is the primal scream of a dying regime. Pray for our enemies because we're going medieval on these people... All these networks lying about the people. The people have had a belly full of it."

He introduces Christopher Leonard, highlighting the significance of Leonard's work in understanding America's financial and industrial trajectory.

Timestamp [01:19 – 03:08]

Leonard responds by outlining his ongoing research focused on the defense industrial base. He underscores the historical context, tracing back to the deindustrialization that accelerated post-China's WTO entry in 2001:

Christopher Leonard [03:08]: "When you think about the United States right now, in my mind, the most important story of the day... is the deindustrialization of the United States over the last 40 years... We won the world war because of the power of our manufacturing... We've lost the manufacturing ecosystem that we had in 1940."

Section 2: Historical Context and the Rise of Industrial Hegemony

Timestamp [03:08 – 07:31]

Leonard provides a comprehensive historical overview, comparing the United States' manufacturing might during World War II to its standing in the early 1970s. He emphasizes how the 1930s policies and global events shaped America's industrial landscape:

Christopher Leonard [04:28]: "We were the arsenal of democracy. And how we exist right now today is that we have lost the manufacturing ecosystem that we had in 1940..."

Bannon interjects with reflections on FDR's industrial policies and contrasts them with Germany's wartime economic strategies:

Steve Bannon [06:02]: "It was the ramp up in 39 and 40 that got us out of the Great Depression... How do we go from a manufacturing hegemon to cut to the early 1970s or whatever, this decline?"

Leonard further explores the transition from post-WWII hegemony to the challenges of maintaining industrial supremacy, highlighting key moments such as the Nye Commission and the America First Movement.

Section 3: The Erosion of the Defense Industrial Complex

Timestamp [07:31 – 16:55]

The conversation shifts to the defense industrial complex, with Leonard detailing the interplay between manufacturing and national security:

Christopher Leonard [05:19]: "We have lost the manufacturing ecosystem... The defense industry relied on that. That's what made it great."

Bannon questions the leadership decisions that led to the decline of America's manufacturing base despite its pivotal role in establishing the nation as a superpower:

Steve Bannon [07:31]: "How did the 'greatest generation' as leaders allow our greatest power, the manufacturing hegemon superpower, to just leave?"

Leonard discusses the strategic decisions from the 1990s onward, particularly the "Last Supper" meeting in 1993 where the Pentagon urged defense contractors to consolidate, leading to a diminished industrial base:

Christopher Leonard [19:53]: "That initiates phase two, which brings us up to February 2023... the manufacturing might that existed in 1940 now essentially exists in China, Mexico, Vietnam and elsewhere."

Section 4: Modern-Day Challenges and Geopolitical Implications

Timestamp [16:55 – 33:04]

Leonard draws parallels between historical industrial shifts and current geopolitical tensions, especially with China's military buildup:

Christopher Leonard [31:08]: "China's undertaking the fastest, most rapid, most expansive peacetime military buildup in the history of the world."

Bannon brings in contemporary policy discussions, referencing President Trump's initiatives to bolster manufacturing through measures like the Defense Production Act and critiques the current inability to escalate manufacturing in times of crisis:

Steve Bannon [22:05]: "They can't find welders. They've got to train welders up from nothing over a long time... We're trying to develop military industrial might without that commercial manufacturing base around it."

Leonard emphasizes the vulnerabilities arising from the outsourced supply chain, particularly in critical sectors like shipbuilding and aerospace:

Christopher Leonard [21:10]: "Parts of the F35 come from China... They have parts produced in Europe and then assembled here."

Section 5: The Future of America's Industrial and Defense Strategy

Timestamp [33:04 – 44:22]

The discussion moves towards strategic solutions and the imperative to revitalize America's manufacturing base. Leonard outlines the three phases of the military industrial complex, highlighting the urgent need to reinvest in domestic manufacturing to ensure national security:

Christopher Leonard [34:39]: "China right now has a manufacturing advantage against us of 200 to 1 compared to the United States."

Bannon underscores the critical nature of this decline, comparing current manufacturing vulnerabilities to those that led to World War II:

Steve Bannon [35:11]: "A lot of people on the Japanese, [...] thought they had to have a knockout blow against the foreign devils."

Leonard ties these historical insights to modern challenges, warning about the risks posed by emerging technologies like Artificial Intelligence (AI) in warfare:

Christopher Leonard [43:42]: "Once the technology is on the shelf, the logic of war is going to mandate itself."

Section 6: Economic Implications and Policy Recommendations

Timestamp [44:05 – 48:23]

Leonard delves into the economic policies that contributed to the deindustrialization, such as free trade agreements and the financialization of the economy. He critiques the shift from being the workshop of the world to global financial dominance, which eroded domestic manufacturing:

Christopher Leonard [45:07]: "We are the peak, the pinnacle of it. And it's therefore in our interest to be engaged more in running the entire system than being the workshop of the system."

Bannon connects these economic shifts to present-day fiscal challenges, including the soaring government debt surpassed only by personal debt:

Steve Bannon [48:22]: "Our interest payments on debt right now cost more than the entire military budget."

Leonard reiterates the necessity of reevaluating policies to restore the manufacturing base as a cornerstone of national power and economic stability.

Conclusion

As the episode concludes, both Bannon and Leonard emphasize the urgency of addressing America's industrial decline to safeguard its national security and economic future. Leonard's insights, backed by his extensive research in "Lords of Easy Money", provide a foundational understanding of the systemic issues facing the United States. Bannon underscores the importance of reinstating robust manufacturing and defense strategies to counteract global adversaries and ensure the nation's continued supremacy.

Notable Quotes:

• Steve Bannon [00:03]: "This is the primal scream of a dying regime... It's going to happen."

• Christopher Leonard [05:19]: "The defense industry relied on that. That's what made it great."

• Christopher Leonard [31:08]: "China's undertaking the fastest, most rapid, most expansive peacetime military buildup in the history of the world."

• Steve Bannon [35:11]: "A lot of people on the Japanese [...] thought they had to have a knockout blow against the foreign devils."

• Christopher Leonard [43:42]: "Once the technology is on the shelf, the logic of war is going to mandate itself."

Final Thoughts This episode serves as a critical examination of the United States' transition from an industrial and military powerhouse to its current state of vulnerability. Through historical analysis and present-day observations, Bannon and Leonard illuminate the pathways that led to America's decline and propose considerations for its resurgence amidst evolving global dynamics.