Transcripts. Bannon’s War Room. Cortes: The UK's Collapse Gives A Glimpse Of America's Future Under Excessive Government Spending. October 20, 2022.
Topic: America’s Future under Excessive Government Spending. Guest, Steve Cortes. October 20, 2022.
Transcripts from Bannon’s War Room on Rumble: Cortes: The UK's Collapse Gives A Glimpse Of America's Future Under Excessive Government Spending
Published October 20, 2022.
Steve Bannon:
Cortez, let me bring you here for a second. I know we get stuff to go through, the American economy and of course, Germany inflation out of control, Europe 10.9% announced today, England, the highest in 40 years it's an absolute mess. What are the warnings you see is a guy that lives in the capital markets every day, warnings that are from the UK both economy and political class to the United States?
Steve Cortes:
Steve, this is critical because no one here should rest easy thinking of those problems are going to stay across the pond, across the Atlantic, in the UK because we are on the exact same trajectory. Now, they are further downhill, they are further along in their economic descent, but we are on the exact same path. And make no mistake, we shouldn't pull any punches about this or try to coddle in terms of the terms we use.
The UK is having a sovereign debt crisis. I mean, literally the mothership to the United States formerly the most powerful Empire in the world, the people who created the currency, which was once the reserve currency of the world, created the metaphor, “sound as a pound”, which mattered globally, they are having a sovereign debt crisis and that's not my opinion, that's what financial markets have thrust upon the country because of its mismanagement of its economy with interest rates absolutely soaring and the British pound absolutely collapsing right now, but the United States is on that same trajectory. And again, not my opinion, look at what global bond markets are doing, okay.
Global bond markets right now are completely rejecting the Boris Johnson and the British Tory agenda. They are also completely rejecting the Joe Biden agenda, right, of a lack of growth, not just a lack of growth but actual negative growth stagnation combined with absolute runaway inflation.
Right now, today as we speak Steve 10-year treasury yield, which is the benchmark for the entire world. All global interest rates from your car loan to British government debt, all of it is predicated and based upon relative value to the US 10-year treasury. The 10-year treasury right now is well above 4%, is it 4.1% as we speak. To put in context on Election Day in 2020, November 3rd of 2020. It was at point eight percent (.8%). It is more than five times higher than it was home.
Steve Bannon:
Slow Down, slow down, the 10-year treasury is the instrument out there that guides most of your life from your credit card to your mortgage to your college loan that you know the MAGA pay off, the dead beats don’t, 0.8% under Trump on Election Day of 3 November 0.8% 4.1% today, right? That tells you everything you want to know, right?
Steve Cortes:
Steve, I think we should show it in in chart form. If we could, let's pull up chart number one because I think it's important to the show folks and this actually goes back to the beginning of the Trump term. This is 10-year treasury yield and the reddish shaded part there is Trump, the blue shaded part is Joe Biden, to show you what has happened in interest rates since Joe Biden took over and again, for folks who might want to say, well, wait a second, interest rates are rising globally or it's just the business cycle, or it's not Biden’s fault.
No, there were three massive policy mistakes. First, he attacked American domestic, energy production, the Trump energy Revolution. He went right to work attacking our domestic production. Secondly, he along with Pelosi and Schumer engaged in exorbitant borrowing and spending at the federal level and then thirdly, along with NATO but he was really the leader of this, NATO could have done it without Biden, a massively escalated what should be a regional conflict in the Black Sea and turn it into a global conflagration, not just for national security, but also for interest rates. And so, these are caused crises and this interest rates spike worldwide. It is a caused crises it is caused primarily by Joe Biden.
Steve Bannon:
By the way, that it when the bond market is like this, it shows you, it's his, it's he's in terms to finance his business model, they're going to charge your five times, more essentially 5x, more five hundred percent more than they’re going to charge Trump. Is that essentially a simple way to look at it?
Steve Cortes:
That's the right way to think of it. Think of the bond market basis being the global bank, okay? And think of United States as being a borrower, being a business, okay? The bank was willing to lend money to the business of the United States because it's so believed in the United States and because it's so wanted, and again, the bank is global bond markets, the bank so wanted dollars, the reserve dominant reserve currency of the world, that the bank was willing to lend at very friendly rates to the United State.
That is simply no longer the case. Number one, I think the dollar has been put very much in jeopardy as the world reserve currency. Number two though, the bank, the bond market doesn't believe in the business model anymore, not under this new management. And by the way, for good reason, because we have now out of control inflation and a Biden recession and we can get to some of the data. I believe every session is deepening. It is intensified is getting worse and I think a lot of a lot of serious metrics out there, point to a miserable Christmas ahead. So, we have the worst of Both Worlds, spiking interest rates with crashing growth in the United States.
END
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