Political strategist Steve Bannon pinned the policies of President Joe Biden as a major cause of recent bad economic news. Bannon’s comments this week underscore the continued weak economic state facing the country in the shadow of major bank failures.
The former advisor to President Donald Trump spoke to Phillip Patrick of the Birch Gold Group on Bannon’s popular program War Room. The two discussed the cause of recent bank failures and economic strain and argued that White House policies caused many of them.
Patrick noted that the strain on banks such as Silicon Valley Bank (SVB) may be the start of a much larger problem. He said that 10% of American banks have larger unrealized losses than SVB.
“This could be an unmitigated disaster,” he said.
Bannon was blunt in his assessment, saying that the situation was “not recoverable.”
He added, “We’re living in a fantasy. These Treasuries could be worth a third of their value. This is because of Joe Biden. This ain’t woke. This is dumb.”
The former Trump administration official said that conservatives had warned about such economic issues prior and likened the situation to a cycle. Bannon said that spending under Biden leads to inflation which leads to changes in the bond market, which leads to bank faires.
“This is where we are, this Biden, Biden, Biden and Biden,” he said.
Bannon’s recent comments weren’t the first time that he warned about potential economic trouble due to the policies of the Biden White House.
"The FDIC is going to have to liquidate some of those holding in order to pay off some of those uninsured depositors."
E.J. Antoni joins Steve Bannon to break down the continued peril on the financial markets following the #SVB collapse.#WarRoom pic.twitter.com/TBBBzeRJvn
— Real America's Voice (RAV) (@RealAmVoice) March 15, 2023
Bannon’s argument also correlates with Republicans’ criticism of the historically high spending under the Biden White House, which they argue helps to spark inflation leading to major strain in the banking sector.
In particular, there is fear among many fiscal conservatives that taxpayer dollars may ultimately be used to bail out insolvent banks for the first time in a generation.
The increase in spending and Biden’s recent proposed tax increases were recently called by former Trump White House economic adviser Steve Moore a “fiscal atrocity.”