Stephen K. Bannon welcomed economic writer and political analyst, Steve Moore on Friday’s War Room: Pandemic to discuss the federal government’s budget timeline and how Republicans are now in a position as DIP lenders to say no to more time.
Bannon: Ok. Let’s go to Steve Moore. Steve Moore, another bunch of happy talk all over. And I want to make sure people understand this process because the audience and the American people have all the power. In D.C. they don’t have the power. And this is raw politics. Power politics. Money and power. We have midnight on the 30th, the federal government’s budget runs out. They have to get authorization to spend a penny the next day or the Democrats have to shut the government down.
And, because of divine providence, on October 15th, 15 days later they run out of the ability to even spend that money because the debt ceiling locks them in and they can’t borrow anymore. So for this audience, if you would have sat there and said I want the government to stop spending. These politicians don’t do it, stop complaining. The power is in your hands.
There is no more intermediary. You are going to fire these guys up on any continuing resolution which lets them get past the 30th for the annual budget, the answer is no. You pass a budget. You get your appropriations and then you go on. No continued resolution. We are not going to kick the can down the road and have 65,000 which they are tucking in here in the continuing resolution. Afghan refugees at $6 billion.
The answer is no. And then on the 15th for the debt ceiling, how about this. Suck on this. The answer is no also. We are not going to increase it one penny. You come back with a plan. You have the House. You have the Senate. You have the White House. You essentially have the Federal Reserve, you come back with a plan.
You are so smart and we are so dumb, give us a plan. Up until that time the answer is no on the 30th. No continuing resolution and nothing on the debt ceiling. Steve Moore, you’ve been on this for years. Tell me where I’m wrong?
Moore: You aren’t wrong. Democrats own it. They want to pass a $5 trillion debt bill which I think is an abomination for our country. I think it will cause financial ruin for our nation. But they are hell-bent on doing it, as you said, they have the power. They control the House. They control the Senate. They control the White House.
They own it. And if they are going to increase the debt then they have to be the ones to find the votes to raise the debt ceiling. Now there is a big PR campaign in Washington by the media and the Democrats to say to the Republicans, oh, you have to do what’s right for the country. You have to stop us from defaulting on our debt.
You have to do this as a good citizen of America. And my attitude is no. By the way, the crisis is not the debt ceiling, the crisis is the $30 trillion debt. This is the most amazing thing. They act as if all we have to do is raise the credit card limit and we’ll be fine. (Chuckles) No. We can’t afford this stuff. And by the way, $10 trillion this year.
$10 trillion is how much the Democrats will authorize through the normal budget, plus the blue state bailout bill, plus the sham infrastructure bill which is Green Deal. Plus their $3.5 to $5 trillion what I call Great Society Two. We are for none of this Steve. We as free-market conservatives are against every word of this. And so it should be hell no to all of it.
Bannon: Hold on. I want to make sure we go through here. They are confusing the situation. This is the fog of war. What we do in the War Room is give you nomenclature, process, statics, and dynamics of process, critical pass so you can make decisions. And they are going out of their way. The uni-party are going out of their way to confuse things.
So in the fog of war remember, to be very focused on what is important and broom away everything that is tangential. In the land of the blind, the one-eyed man is king. And right now we are the one-eyed man okay? And here’s what it is. On September 30th, the government on an annual basis does not have the authority to spend any more money. Okay?
Really the appropriations bill. The authorization to do it. If they can’t do that they want these continuing resolutions which just kicks the can down the road. That’s how we’ve run the government for years. A couple of times in our past history we’ve stood up and said we are not going to do that and guess what? The party in power shuts the government down which would be the Democrats because they control the House, the Senate, and the White House.
They shut the government down. And they’ve got to come to the table. The annual budget is $5.2 trillion. They are confusing the situation by the $1.2 trillion infrastructure and the $3.5 trillion. Those are all kind of in additions too. In addition too. They don’t really have the ability to operate the government right now because they can’t pass it now because of divine providence. Also, they’ve run out of credit cards. They can’t sell any more debt.
Remember, this is not selling debt bonds to the Chinese or the Japanese, or the Gulf Emirates. This is not tax revenue. That is you. The Treasury Department needs to basically sell bonds to the federal reserve. That would be you. Forget the Federal Reserve. It’s you. The full faith in the credit of the United States is you, the deplorables.
You are the ones that are letting that credit card go up. It’s you, your kids, and your grandkids who are going to pay off the $30 trillion in debt. And if we let them go now, it’s going to be $50 trillion. But here’s the beauty of it. You have all the power. This is why they are trying to confuse the situation in Washington, D.C. This is why CNBC and they are talking $1.25 trillion, $3.5 trillion.
And AOC is running around with the Green New Deal. And oh, maybe Joe Manchin and Kristen Sinema. And maybe they are going to save us. And maybe it’s going to be $1.5 trillion. How about this? It’s nothing. It’s zero. The answer is no. You don’t have a budget, we are not voting for it. And no CR. We are not kicking the can down the road.
At midnight on the 30th, hey, Biden, you are in charge. I guess you don’t have any money. I guess it shuts down. Sorry, not sorry. Right? And on October 15th, Janet Yellen is running around oh, get the tomato cans in the back of the Federal Reserve. Where is the cash? We’ll play the three-card money. We can’t pay the veterans.
We can’t pay the social security. Tough luck. You run the government. You had enough time to have a plan. You are so smart and we are so dumb. How about this? Ah, no. So, Steve Moore, you’re the biggest brain we’ve got on this thing, tell me where I’m wrong.
Moore: No, you are right. The Republicans have to play hardball here. It’s not a time for patty cake. It’s not a time for singing Kumbaya. It’s basically saying, you own it, Democrats. You own the debt. You own the massive spending. You own the tax increase. If you can pass it, fine. But we are going to make sure they no Republican in good faith should do anything to aid and abet this raid on the treasury.
It is the most dangerous bill I have seen probably in my 35 years in covering politics and policy in Washington. This will bankrupt our country. By the way, the bankruptcy of the country is the debt. Not the debt ceiling. If we don’t pass the debt ceiling, you know what that means Steve? They’ll have to cut spending. Stop the spending.
Bannon: This is my point. I’m going to give you a Wall Street term. And this is what this posse is going to start acting like. The country is bankrupt. Unless they create phony money or increase the credit card limit is going to default. If nothing happens between now and October 15th, the United States defaults on government securities.
The safest security in the world and the reason they sell it at the lowest interest rates. They are going to default in those securities. Default means you are bankrupt. You defaulted on your securities. Right now, the War Room posse is the debtor in possession. We are the dip lender. That’s how we start thinking about that. Kevin McCarthy you moron.
Mitch McConnell you moron. We are the debtor in possession. We are the dip lender. And on Wall Street, it’s not hardball. It’s smashmouth. We’re the dip lender. We are not going to agree to anything until you show us a plan that works. And that plan that works means you don’t need any more debt. This is like any company that goes into bankruptcy.
The nation is bankrupt. It’s obviously bankrupt. And they put it into bankruptcy. They own it. And by the way, in debtor and possession, you know what happens? The first thing that goes, you get rid of the management team. Management team, gone. Nancy Pelosi, gone. Joe Biden, gone. Chuck Schumer, gone. Okay? That’s why we start in the Rio Grande valley.
Do you know who understands this? The three Hispanic congressmen in the Rio Grande Valley. The one guy retired and the other guy going Nancy, we can’t sign on to the $3.5 trillion because we are going to get crucified. This is so obvious and they don’t want you to understand. Right now, this posse, your debtor and possession lender. We are the dip lender.
And here is our answer. No. We don’t sign off on the business plan. So on the 30th of September if you’ve got something you can pass you do it but we are not agreeing to anything. The answer is no. And no continuing resolution. If the government shuts down, you’re shutting it down. Hey, you are shutting it down. And on October 15th, you’re not getting one penny.
We are debtor and possession. Come back to a plan that shows the restructuring. And that means massive cuts. Not $1.25 in a phony infrastructure bill. Not $3.5 trillion for some phony human infrastructure bill. You can’t even pass an annual budget. Because guess what? You can’t run the $3.5 trillion deficit this year. This is so simple.
And I want to put all the numbers for every member of Congress up there. I need this posse to show its muscle today. Very simple. The answer is no. We don’t want any negotiations. We don’t want to hear anything. We want them to come up with a plan. And if they can pass it, God bless them. But unfortunately, they don’t have the votes. They don’t have the votes.
Get those numbers up there. Get it into every platform we’ve got. Today you are on a mission. Task and purpose. And that task and purpose are very simple. The answer is no. We aren’t playing hardball. We are playing smashmouth. Okay? Because they rate it. They got us into this situation and they need your assistance to get out and we ain’t giving it to them.
Steve Moore, I know you are putting some group together and I hope they are prepared to play smashmouth, because no offense, some of the talk I’ve heard coming out of there is more of the Republican talking points and happy talk you always here. We’ve won more elections than we’ve lost since 1968 and we lost the country.
We lost the country because we had the wrong people and the wrong policies. And it’s time now to clean house and start having an adult conversation. And if you start having an adult conversation, working-class Hispanics, working-class Blacks, the Asian community.
Everybody is going to rally to our side so we don’t need no. We don’t need to break the country up into nine different pieces. We run this country. And now in the next three weeks you are going to show that you run it because the answer is no. Steve Moore, how do people get to you?
Moore: Yes. We did start a group with Larry Kudlow and many of the people you work with within the Trump White House. It’s called Save America, Kill the Bill. That includes the debt bill. That includes the spending bill. That includes the tax bill. $10 trillion folks. That’s the real number on the budget this year.
Bannon: Hold it. Stop. But you guys will also not agree to any continuing resolution. The continuing resolution is the piece. I love all the stuff you just said. Quite frankly, it’s not relevant. The only thing that is relevant is the continuing resolution. Do you guys support no sign-on to the continuing resolution so they’ve got to pay it by September 30th? If they don’t have something passed, then they’ve got to shut the government down. Correct? We’re in sync?
Moore: They need to pass their own budget. If they don’t have a budget we’re not going to give them a continuing rolling budget. And you are right. When you have a bankrupt institution you replace the management. I love that line. Replace these people. Republicans cannot aid and abet this raid on the American treasury. $500,000 of debt now for every child born today. It is a disgrace and we are here to stop it.
Bannon: But we can stop it. This posse. You are the debtor in possession. Write this term down. Dip. Steve knows what I’m talking about. Larry knows what I’m talking about. We are the dip lenders. They have to come to us to get more cash. That’s what happens in bankrupt companies. They have to go to the dip lender. The lender of last resort. And that would be the deplorables. Isn’t this sweet? All this time of trash talking you and now they’ve got to come to you and ask permission. Permission not granted. Sorry, not sorry.
Watch the full interview here:
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