Bannon`s War Room
Episode 4921: Building The Perfect Child; Shocking The World Into Acceptance
12 Nov 2025
Chapter 1: What recent changes have impacted the U.S. economy?
Good morning. It's an honor to be here. To begin with, I'd like to thank the New York Fed for hosting this meeting and inviting me to join you. It's fitting that the Treasury Market Conference is held each year in the fall. Late fall offers us the opportunity to both look back and to look forward. And since the fall of last year, much has changed.
November 24 marked an inflection point for the nation and its fiscal future. The American people had just elected President Trump to put the country on stronger financial footing. The previous administration had run up the highest deficit in U.S. history outside of a recession or wartime. As a result, inflation had skyrocketed to generational highs.
Families watched their hard-earned savings melt away as prices of consumer goods climbed even higher. Seeking a course correction, voters elected President Trump in a landslide and they gave him a clear mandate to make America affordable again.
My commitment to that cause, to improving affordability and putting our fiscal house in order, is what motivated me to come up from behind my desk in the private sector and to enter public service. As the 79th Treasury Secretary, my duty is to serve as the primary caretaker of the Treasury market.
Maintaining a robust Treasury market and even strengthen it further is essential to making America affordable again. That's because Treasury yields set the global risk-free rate. Domestically, the risk-free rate sets everything It sets pricing for everything from bank loans and home mortgages to stocks and corporate bonds.
In that sense, treasuries are not only the bedrock of the global financial system, but also the American dream. Treasury yields have a trickle-down effect on the broader economy that determines whether a young family can afford a home, a college student can buy a car, or an entrepreneur can get a small business loan.
The work we do here directly impacts affordability and quality of life out there, which is why we must succeed. The good news is we are succeeding. The U.S. Treasury market is more robust and more liquid than it's ever been. The Treasury Department has made significant progress in increasing demand and expanding accessibility to U.S. debt.
We are poised to make even more progress towards this goal in the months to come. Purpose of my remarks this morning, twofold. First, to highlight the depth, breadth,
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Chapter 2: How do Treasury yields influence affordability for families?
and enduring importance of the U.S. Treasury market, and second, to outline the strategies we're using to keep it that way. As Treasury Secretary, my job is to be the nation's top bond salesman, and Treasury yields are a strong barometer for measuring success in this endeavor.
By this metric, we're making substantial progress in keeping rates down following the spending blowout from the Biden years. In fact, the U.S. Treasury market has been the best performing developed world bond market this year. The Treasury market's total returns year to date are 6%, its best year since 2020. The U.S. 10-year term premium is basically unchanged, while U.S.
borrowing costs across all other areas of the curve, from two-year notes all the way to 30-year bonds, are down year to date. Lower Treasury borrowing costs mean lower corporate borrowing costs, lower mortgage rates, and lower car payments, which all translates to greater affordability for all Americans. Other developed bond markets, by contrast, have had nowhere near the same success.
Some countries have seen demand for their debt reduced or even dry up, especially at the long end, and they've had to react by curtailing sales, but not the United States. We continue to see robust demand at Treasury auctions from a wide range of investors, including foreign investors whose holdings of Treasury securities are at record levels.
This impressive performance comes in spite of the negative rhetoric and doomsaying of market pundits, especially this spring. For the past 10 months, the press has been pushing a sell America narrative. But the data and the price action have been saying the opposite. Buy America. And the market always rewards those who put fundamentals over fear.
Suffice it to say, the Treasury market remains the deepest and most liquid market in the world, which is a testament to the efficacy of the Trump administration's economic policies. Investors around the globe trust the Treasury market because of its utility as a safe, liquid, and reliable store of value.
Treasury securities are used for a wide variety of purposes in the financial system, including as a vehicle to finance U.S. government, as a means for the Fed to implement monetary policy, as an asset for global investors, as a high-quality collateral for a range of different transactions and institutions, and as a reference benchmark for a wide variety of other borrowers.
Daily trading volume for U.S. Treasuries averages around $1 trillion per day, and that's just in cash securities. Volumes and associated derivatives represent another major source of liquidity. During periods of market volatility, volumes in the Treasury market increased substantially.
When markets continue to facilitate effective risk transfer despite unexpected events, that is a sign of things working. Having traded many different markets across the world throughout my career, it is moments when markets stop trading that most concern me.
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Chapter 3: What strategies are being implemented to strengthen the Treasury market?
To that end, Treasury is pushing several forward-thinking initiatives to strengthen the Treasury market. This includes the Treasury Buyback Program, which is an important tool in supporting market liquidity. While the program has been a success so far, we continue to look for ways to improve its efficacy.
We have already expanded the size of the long-end operations in the Treasury buyback program and will expand the counterparty set in the first half of next year to continue building on the progress we've made. Treasury is also supportive of reforms to the enhanced supplementary leverage ratio, or the ESLR.
In its current form, the ESLR risks becoming a consistently binding constraint rather than a backstop to risk-based capital requirements. that can distort banks' incentives to engage in low-risk activities such as treasury intermediation. The ESLR must be improved to prevent this distortion. Expanding central bank clearing is also key to strengthening market.
The SEC is currently leading an effort to expand central clearing in the treasury market, which will enhance resilience, expand netting opportunities, and standardize risk management. This effort also supports competition in the marketplace as several central counterparties are launching new business lines to facilitate the expanded clearing activity.
Okay, we're going to cut highlights of this and come back to it. Why is this important? What does he say up front? Remember what we've talked about, and then Paul Ryan got into it, I don't know, a month or so ago. The way, and I talked about it here, remember the economist interview I gave? The coming debt emergency. How's the coming debt emergency triggered?
The coming debt emergency is triggered by what? this is a concept you should write down, a failed treasury auction where the demand, you know, we get so much debt at the price we want to sell them at that there's resistance in the market or that a treasury auction, which goes on I think essentially every day or every couple of days, fails.
And that has a chain reaction that you start to quote unquote reprice risk And the way they reprice it is higher. This is what the Charlie Gasparino theory right now or why you can't totally get inflation under control, that that 3% and Gasparino has been doing this a long time, says that Wall Street and particularly maybe even Treasury and the Fed are signaling that maybe 3% is their new target.
I don't happen to think that, but 3% is not insignificant. Of course, it is orders of magnitude lower than the Biden fiasco that started this. But it's not the traditional two, which I think is the Fed target. And that 100 basis point or that 1% is a big deal because that rolls all the way through to your credit cards, your home mortgage, all of it.
In fact, that's one of the underlying beliefs of the 50-year mortgage. I'm not defending it, but one of the things they're saying is that with interest rates at a certain height, you do get the lower payment, the lower monthly payment.
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Chapter 4: Why is the Treasury Buyback Program significant?
If you've got to make that and a car payment and you've got to pay credit card debt, if you've got two, three, four things you're paying off, every couple hundred bucks you save on that is worth it in the short term and then you refinance it when you get into a better financial situation.
I understand, 50 years is a long time to have a, you know, the 50 year mortgage in and of itself is not a solution. Maybe it's a tool in the toolbox, particularly for people that want the option, but it's not a solution. I also don't think it was presented as a solution. I don't think President Trump ever said, hey, this is going to this is going to solve the affordability crisis in homes.
I think it was another tool in the toolbox. I think the way it got put out there by the guy that presented it to him, you know, particularly unvetted or not. Hey, this is a package of what we're going to do. And I think Benny Johnson and
Andrew, over at Turning Point, this is one of Charlie's big things about some sort of moonshot or some sort of Marshall Plan or something for the affordability and particularly the home crisis. As I said, this generation is nothing but Russian serfs. They don't own anything and they're not going to own anything.
If you treat them like if they're Russian serfs, eventually they're going to do what the Russian serfs did. Not a lot of them signed up for the Bolsheviks. They weren't exactly excited with the Bolsheviks, but they got crushed by the Bolsheviks, but some of them gave some muscle, particularly in St. Petersburg and Moscow, provided a little muscle because they didn't see an alternative.
This is why you got Zoran in Manhattan. You got a Marxist jihadist. As I said, the National Conservative Convention, that this is not ā the threat to Israel and the threat to the Jewish people principally is not coming from Tehran. And the obsession with that, the obsession with that has now a two-state solution.
You've got a two-state solution with the Muslim Brotherhood financier and the Turks running security and the Muslim Brotherhood financiers writing the checks. The threat is in New York City. How do we get to New York City? Because kids, and you look at all these things, well, they're looking at socialism. They don't like capitalism. They never had capitalism. They never had capitalism.
They've had globalism.
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Chapter 5: How is the U.S. Treasury market performing compared to other developed markets?
They have corporatist globalism. That's not free market entrepreneurial capitalism. And the first thing you have to do is protect your citizens. Hell, we're protecting industries. That's what tariffs are. I know they don't want to talk about it. The T word is based upon the P word. You are protecting certain industries. This is why the Republican, this is why Conservative Inc.
hates it because they're all raised on Milton Friedman. Being raised on Milton Friedman is, to me, just like being raised on John Maynard Keynes. You don't get actually the entire, you know, you get two sides. You don't really get solutions. President Trump's offered you a solution. A supply-side tax cut to focus on massive investments in productive capital, plant and equipment.
coupled with a trade policy, commercial relationships with the world, that you've got a choice. You're either going to build it here and create jobs, or you're going to pay a tolling fee. Take your pick and use the tolling fee, the tariffs, as a forcing function. But the whole purpose of it is not then to invite the world back in.
Hey, you had jobs, invite them back in, particularly from Asia, particularly from India and China. Why would you invite, why would you invite then massive immigration here on some sort of visa program to take those jobs away from Americans? Now, if Scott Besson is saying, oh, they're only here for a couple years to just train people. Hey, on this one now, I think we're all from Missouri.
I think all the numbers got to be put out. including the investment of foreign companies, the best way to make your case is to make your case. The theory of it and what you've done so far to execute it is quite frankly brilliant. Nothing short of brilliant, a President Trump's plan. Just now, let's show some math. Let's show the projections.
And let's show if there's certain areas that the American worker in this plan are not up to speed and skills.
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Chapter 6: What ethical concerns arise from embryo editing technologies?
Nobody faults getting up to skills. I got to have Lutnick or the Department of Labor or somebody has got to put those numbers out and I think show folks. Short commercial break. Back with the tech bros in a moment. Let me be blunt. Gold is up around 40% this year. That's not speculation. That's reality. And if a portion of your savings isn't diversified into gold, you're missing the boat.
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Chapter 7: What are the implications of polygenic screening for future generations?
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Okay, like I said, we've got to get, you know, the Kristi Noem comment that we're letting more folks in than ever. I think the focus should be let's cut it by 50% in 10 years. I'm serious. You can do it. Tons of actions you can take to do this. You would free up so many opportunities for kids, not just kids, but adults in the United States. It would be amazing.
Also with Scott, if the new program, is that the new plan that's interim basis is just to train people up? And maybe people in Georgia show me something different or Hyundai shows me something different.
I don't, and maybe it's true and we're going to dig into it, but I'm not buying the fact that the guys down in, the folks down in that plant where they're just to train people and they're going to leave, they were kind of off the books and, you know, living like indentured servants. This is why the folks down in Georgia started calling people because
First, it was kind of health and safety checks, health and welfare checks to go and check in on them. then nothing kind of came together. If that's the issue, particularly as you have this foreign capital coming back in, and remember, I'm no fan of foreign capital, but you've got all these deals lined up with trillions of dollars coming in.
If the Germans, like the Germans at the magnet plant, if you have to do it, then you have to do it. And if Scott's saying it's going to be temporary, then hey, temporary. But one thing I can tell you about corporate America, if you ain't on them about things like this, they're going to have a workaround because they want cheaper labor. You people, they don't like the Americans' attitude.
They want cheaper labor, and they don't want to pay health benefits or retirement. Pretty simple. It's a big economic difference. But that's what I'm saying. American citizens got to come first here.
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Chapter 8: How are states addressing the integration of AI in education?
You want to be the arsenal of democracy? You want to grow families that create young men and women that fought in these horrible wars in Iraq and Afghanistan, Vietnam, Korea? let's say everything since World War II, you want to create those heroes that you all say, thank you for your service. I tell you, don't say thank you for your service.
Get on a company that's employing foreigners instead of American citizens. Every time you go in, you should ask them the question. People in the service, the last thing they need is your thanks. They do it for their country. They do it for their comrades in arms and the brotherhood of service. They don't need to be thanked. Every day in serving in those positions is a thank you.
Ask every person that served, you know, particularly most of the time, some make it a career, but the bulk go in for some period of your time in the 20s. And I tell people, it's the best thing you could ever do. The best thing you could ever do. So the country itself, by providing that opportunity, You're getting a thank you. You want to thank them?
Make sure their family's got a, you know, their dad's and mom's got a shot to make a little money to raise them up right. Okay? Do that. And take the economic anxiety away from it. You want to build a strong country? Do that. Do that. Don't give them a handout. They don't need a handout.
The only thing they want is not have the world come in here and compete against them every day in their own freaking country that they fought to defend and pay taxes for and built up. That's why people are so angry about this, and they should be angry about it. Okay, I've got to play this.
And on top of all that, they're going to make a bunch of genetic babies because they don't want to see you anymore. Let's go ahead and play. Can we go ahead and play Stephanie Rule from last night, and then I'm going to bring some folks in. Let's go ahead and let her rip.
While the race for AI captures all of the headlines, there's another one quietly brewing between Silicon Valley executives. The race to create a bioengineered human being, a child. The Wall Street Journal has some extraordinary reporting out that a small company backed by none other than OpenAI chief Sam Altman has spent months pursuing a secret project for a genetically engineered baby.
They're working toward creating a child born from an embryo-edited baby. to prevent a hereditary disease. Editing genes in embryos in order to create babies is banned in the United States of America, so the company called Preventive has been searching for places to experiment where embryo editing is allowed, including the United Arab Emirates.
Sam Altman's family office and Coinbase co-founder Brian Armstrong are backing this company Preventive, which, as you mentioned, is conducting preclinical research to attempt to create a baby from a genetically engineered embryo to prevent a hereditary disease.
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