Episode 5575: Where We Stand On The Economic World Stage

episode

Bannon`s War Room 55 min 4 speakers 8 chapters transcribed 1 month ago

▲ 0

Transcript

jump: chapters · speakers · find in transcript

Transcript

Transcript generated automatically by AI and may contain errors.

What is the opening premise of the episode and who are the hosts?

Stephen K. Bannon 0:02

This is the primal scream of a dying regime. Pray for our enemies. Cause we're going medieval on these people. You're gonna get a free shot on all these networks lying about the people. The people have had a belly full of it. I know you don't like hearing that. I know you try to do everything in the world to stop that, but you're not gonna stop it. It's going to happen.

Unknown 0:24

And where do people like that go to share the big lie? MAGA media. I wish in my soul, I wish that any of these people had a conscience. Ask yourself, what is my task and what is my purpose? If that answer is to save my country, this country will be saved. War Room, here's your host, Stephen K. Bass. Let's get to Lauren with the numbers. Go ahead, Lauren. Minus 23,000. No rebound for the July jobs report. Negative 23,000. Unemployment rate drops in July to 4.1% from 4.2% in June, and the same for the expectation. The number of unemployed drops from 7.1 million to 6.9 million. Where are other jobs, Maria? Well, manufacturing, bright spot, better than expected, created 5,000 jobs in the month, but again, a disappointing jobs report.

Stephen K. Bannon 1:29

Saturday, eight, August, year for Lord twenty twenty six. I think even worse was the issue of wage growth, etcetera. Philip Patrick I've got you on. I want to talk about the Middle East.

How did the July jobs report perform and what does it reveal about the labor market?

Stephen K. Bannon 1:41

The war. Also, uh this issue of the CR that they're gonna pass to kick the can down the road, all of it, how it impacts the turbulence we've seen in capital markets, and particularly gold as a hedge for all this. Let's start first off your assessment of the economy, what these numbers showed, not just the the labor participation, uh unemployment rate, where the jobs are being created, where they're not, also the Іщус від вagюс кипінь у інфляцію. Philip Patrick, the floor is yours, sir.

Philip Patrick 2:14

Yeah, yesterday's job report was uh genuinely quite quite a weak one. And I think the revisions were were almost as important as that as the headline. The economy lost, as they mentioned in the cold open, about twenty-three thousand jobs in July. Forecasts, though, were anticipating eighty thousand uh job increase. And then we learned that in May and June, a hundred and three thousand jobs uh were were lost. Essentially it was a Weaker report than uh weaker than reported. So the problem is it isn't just one bad month. The labor market has been losing momentum for several months in a in a row. As they mentioned, unemployment actually fell to 4.1%, but that number's misleading. The decline was mostly because about 264,000 Americans left the labor force altogether, which ultimately is bad.

Philip Patrick 3:04

news, right? We don't want unemployment falling because people have given up looking for work. Um Worse, uh, inflation adjusted pay declined by 0.1%. Now, I wouldn't overreact to the headline either. About 50,000 of the lost jobs that we saw were basically in local government education, while we saw a slight increase in manufacturing and construction. So taken together, I think businesses have become reluctant to hire in this climate. And the federal Reserve have obviously been all over the news very recently. This puts them, I think, in an even more difficult position. Three Fed officials last week wanted to raise rates because inflation was still too high. But now the question is: can you really start raising borrowing costs in a labor market that's already stalling?

Philip Patrick 3:55

And that's ultimately the trap, right? Inflation says the Fed need to tighten monetary. monetary policy, but job numbers now are saying be careful and when the Fed is trapped between these two problems, the risk of making a mistake starts to rise considerably. Generally speaking, they tend to err on the side of inflation, but that's never a guarantee. And yeah, I just don't think

Stephen K. Bannon 4:17

But this is but this is but this is but this is a problem with them having a dual mandate. For the audience, they've got the mandate of two percent inflation, right? It's it's really a monetary entity since central bank, but they added back in the 70s when there's so many, you know, there's so much unemployment that they had to have also think about full employment.