Bannon and Navarro on Biden’s Strategic Energy Subservience

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Bannon and Navarro on Biden’s Strategic Energy Subservience

Hi. Peter Navarro here and in this episode of my Taking Back Trump’s America podcast and substack, I’m going to reprise a clip from Bannon’s war room. Key takeaways include:

·         Joe Biden has cashed in Donald Trump’s strategic energy dominance for a strategic energy subservience that has allowed Putin and Russia to set world oil prices.

·         Expect oil prices to be 30 to 40% higher over the next two years than they otherwise would be if Donald Trump for President

·         Biden’s sanctions on Russia backfired because Biden couldn’t get any of America’s allies to enforce them

·         The failure to shut down the Hong Kong clearinghouses after Communist China crushed Hong Kong was a pivotal moment in history that has been ignored thus far by historians.

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Bannon

I want to bring in Dr. Peter Navarro. Dr. Navarro, part of your brilliant substack you've been,

you've been writing and of course, the amazing course you've got going on at, you know, but everybody's raving about the macroeconomics.

You're also going to now put your writings up, I think, in The Washington Times as a columnist. Tell me about that before I ask you about the Keynesian attitude of Joe Biden. Because they're going to come in hard. Just because the war room posse is the head of the creditors committee, they don't care. They're going to come in hard. They're not going to back off one inch from the spending. This is going to be a pitched battle. Sir, tell me about the column.

Navarro

Yes, I couldn't be more pleased. The Washington Times, in my judgment, has one of the best, if not the best, op ed sections of any newspaper in the world. And what we're going to be doing with the substack, Peternavarro.substack.com, is that once a week on Wednesdays, they're going to publish one of my columns from the substack. The inaugural one is up today. I think it's a really important piece, Steve. It's about whether Putin was a chess master or just got lucky.

We're in a situation now where for 70 years it was the United States and Saudi Arabia setting oil prices in tandem as the two largest oil producers, OPEC be damned.

You could always crush OPEC either with US. or Saudi [production capacity], and there was a deal. The deal between the Saudis and America is that Americans will protect the Saudis if they'll keep oil prices low.

And so during the Trump administration, when we achieved strategic energy dominance, we averaged about $60 per barrel. And so Putin goes into Ukraine. Biden talks tough on all these sanctions, and he expects everybody around the world, Europe, India, Japan, everyone, to embrace the sanctions, crush Russia, and it'd be over in a heartbeat. [It was pure] hubris. You have to go back to Bush and Cheney for more hubris than that. 

What's happened, Steve, is something that maybe Putin figured out beforehand as a chess master, but Putin now has surpassed America as the partner with Saudi Arabia.  Because Biden embraced Strategic energy subservience, America lost its power.

So what we're in a situation now, Steve, for the stagflation we're facing, it's really bad. Saudi and Russia are going to set the [oil] price, and Russia needs $100 barrel oil to feed its war machine. Saudi needs $80 barrel of oil to feed its social welfare spending. [The Saudi Crown] is basically buying off the Saudi population to keep them passive with just government spending.

So we're in a situation now where we go from strategic energy dominance of Donald Trump controlling world oil prices, keeping them down, to a situation now where everybody's saying they're going to be anywhere from eighty dollars to one hundred dollars a barrel or more for the next at least two years.

And what that's going to mean, of course, for us is in the stagflation area. It takes a hit out of our  pocketbooks, and that causes slower growth, and that's where we stand.

So you can read the fuller story in today's Washington Times or it's again

. But I couldn't be happier that the Washington Times has embraced this.

Bannon

Hangover a second, if you don't mind. I know you're jammed for time today, but I want to hold you through the break, peter, I just want to hold you for a minute. So here's the thing. When you talk about de-dollarization, and we've been talking about this, I'm still a big believer in [using dollar sanctions] when [you have the world’s] primary reserve currency.  You can use the SWIFT system [which manages international currency flows] and you can use the dollar as a weapon, but you have to be very selective, very selective.  And when you use it [dollar sanctions], you’ve got to go all in.

I was a huge proponent of massive sanctions against the Chinese Communist Party, seizing their assets, sanctioning them like they sanctioned you and me, but also using the dollar against them in Hong Kong. [China’s taking of] Hong Kong, to me, that was the Czechoslovakia  of this whole era, the Austria of this whole area era, like the Night comparing it to the 1930s right now. We didn't do that.

[Biden] did it against Russia, and all the people on MSNBC said, oh, this is terrific. [We’re]going to take down the Central Bank of Russia, or destroy their currency.

That didn't happen, and you nailed it. We have given up the full spectrum energy dominance.

Let me repeat that. Full spectrum energy dominance. That is the basis of Trump's economic plan.

Full spectrum energy dominance. And our enemies knew that. Russia knew that.

The [Chinese Communist Party] CCP is going around [now making] massive long term output deals with Persia, with the House of Saud, with Iraq. And those numbers, those long term deals are in yuan, and they're at below market.

They're below market deals. They're below market deals. We're going to end up paying the market price. So strategically, it's working out very well for our enemies.

Navarro

Steve: The two most important words you said were “all in.” If you're going to use the dollar as a weapon with sanctions, you have to go all in and make it crushing.

What's happened with Russia [is that] Putin foresaw that Europe needs its oil and gas. India wants it for cheap. Japan wants it. Everybody cheats. Hey, the US is still buying Russian oil.

So it [sanctions] was a self defeating thing. The word, Steve, I hope you'll embrace this, Biden is strategic energy subservience. That's where we're at now.

Now, the Hong Kong thing. Steve this is something that I wrote about in the Taking Back Trump's America book in The Situation Room. As Hong Kong was falling, I had an executive order I'd written up with the National Security Council that was going to just crush what's called the Hong Kong clearing houses. That's the money laundry that takes the western capital from the Blackrocks [and hedge fund managers like] Steve Schwarzman and puts it in Hong Kong, funnels it through, and then sends it over to the mainland to be invested in building aircraft carriers in China, basically to destroy the American military. How stupid is that?

And [former Treasury Secretary Steve Mnuchin, Larry Kudlow, Bill Barr, and,

yeah, Mike Pompeo, all would not come on board with doing that. It was a bridge too far. [for them]

And I'm going, wait a minute, “we've just lost Hong Kong.  That is a central moment of the 21st century.

Bannon

Your remedy would have stopped the dollars going to them.

I'll get you back on [the show]. Actually, we're going to try to co host this on Friday. I'm going to try to

get Navarro.  We're going to work this out.

But, Peter, real quickly, before we go, I want to get back to the debt ceiling. Sure. I want everybody to get to your macro course. It's dirt cheap.

It's basically a giveaway. I think it's $12. I want everybody to take it. It's a Harvard type

course taught by you.  You have your PhD from Harvard.

But here's the important thing. Over the next couple of weeks, as the economy softens, the pitch of the Biden regime is going to be exact opposite of [what we should be ]doing. They're going to go  to another Keynesian [stimulus], saying, hey, the economy is softening.

[We’re] having deflation. We need a stimulus. We need another stimulus. We need to spend more money. Give me a minute. Walk our audience through how they're going to frame the argument, brother.

Navarro

So the central problem that Biden and Obama never understood, and Biden [doesn’t] understand today, is that you can't solve stagflation with Keynesian tools. You can use Federal Reserve policy or Keynesian tools to only fix one problem at a time.

So, yeah, Biden's going to come along as the economy is collapsing, and he's going to want to stimulate, but that's just going to spike inflation. And the real solution to all of this is structural change, beginning with the return to strategic energy dominance.

What I told you in the last hour about how Saudi and Russia are going to keep the oil price [at $80 or $100].  That’s more pure stagflation, a pure drag on the GDP.

We've got to start by reversing [Biden’s Keynesian spending] policy. And Kevin McCarthy and the Republicans have got to hold the line in terms of rolling back those [unnecessary government] expenditures.

Bannon

And we've got to just stick with that. We got to be hard. And here's why. If you put yourself in the eyes of your enemies, what the [financial] guys are saying, hey, look, we have these resources, but they're draining out. You're giving us these dollars that you're devaluating because you're spending your profligate spending. We have to charge higher. You're ripping us off.

So their logic has a certain internal consistency to it.

Navarro

Yeah, it's a pure wealth transfer. Every time they're able to raise that money, it's money out of our pockets in this country [sent] over to bad guys that want to kill us. 

Bannon

The core of it all gets back to our spending. The spending is a tax on people. The spending is not a benefit to people. Peter Navarro how do we get to your substack? The columns, all the content, the books, all of it.

. You can go to the Bannon War Room website to get your discount on the strategic macro course and please try subscribing to the Washington Times. It's a great paper. And the op ed columns there are top line.