Bottom Line Up Front (BLUF):
Steve Bannon issued a stark warning on the state of the U.S. economy, the dollar’s future, and America’s global standing. He credited President Donald J. Trump with reshaping trade policy and confronting Chinese economic aggression. However, Bannon declared that both the political class and Republican establishment have failed to face reality. The U.S. is barreling toward a fiscal crisis, global powers are challenging dollar supremacy, and the "kinetic part of the Third World War” is escalating. A national reckoning is near.
Bannon opened his Saturday WarRoom segment by pointing to new economic reports from Bloomberg and Asian markets. A top Bloomberg reporter stated countries "are coming after” the U.S. dollar, despite it remaining the global reserve. Bannon said the dollar’s dominance "will be for a while,” but warned that "countries in Asia… are thinking through… ways they can get away from the total control Washington has over economic warfare sanctions.”
Bannon attributed the current dollar fragility to U.S. elites. "Federal spending’s out of control,” he said. "The political class cannot cut it.” He criticized Wall Street and D.C. for betting on false hopes, saying, "They hoped Elon came in here with the magic wand and gave ’em a trillion dollars… That didn’t happen.”
He emphasized the unique position of the U.S. as issuer of the global reserve currency. "There are tremendous benefits of being the prime reserve currency… You’re not like Argentina or the UK when Liz Truss got turfed out,” he said. But he warned the world is increasingly looking for alternatives, notably through the "Riyadh reset” being pushed by BRICS nations.
Bannon mocked the G20’s moral posturing against Russia. "They couldn’t have been cozier… They were like teenagers on a first date,” he said, referring to China’s Xi Jinping and Russia’s Vladimir Putin. He claimed the global condemnation of Russia is hollow: "Two of the biggest nations in the G20… were sitting on the stage with him.”
He tied this to President Trump’s international mission: "Trump had Thomas Paine’s three priorities: stop the kinetic part of WWIII, confront the Chinese Communist Party, and deconstruct the administrative state.” Trump is preparing for a trip to Riyadh, UAE, and Qatar "to talk about investments and the Abraham Accords” and to "tap down this war in Gaza.”
Bannon stressed urgency on the domestic front. "We’re hurdling towards a financial crisis,” he warned. "The cuts are not there… $163 billion is not even the beginning of what has to happen.” He lambasted the GOP for failing to meet the moment: "We’ve changed the electorate… But we haven’t changed the elected officials.”
He demanded an honest debate about America’s global role. "Do we want to be the prime reserve currency? Is it worth the responsibilities and obligations?” He suggested the age of "easy money” must end and emphasized the need for a new fiscal vision rooted in populist realism.
Bannon called the current economic plan a "fraud.” "Don’t give me the 10-year… I want to hear about fiscal year 2026.” He said the projected $2.5 trillion deficit for FY25 is unsustainable, adding, "We hit the debt ceiling… in August. Ain’t gonna be done by August, not the way they’re going now.”
Finally, Bannon underscored the broader political battle ahead: "We’ve got this judicial revolt, a financial cliff, and the kinetic part of WWIII — all converging.” He concluded: "We must deconstruct the administrative state and destroy the Deep State. This audience — not the elites — must decide the future.”
Assessment:
Bannon’s remarks signal a deepening split between populist-nationalist forces and establishment Republicans. He is preparing his audience for a systemic showdown — economic, geopolitical, and constitutional — and views President Trump as the only figure capable of steering through the storm.
For more context, watch the full Saturday WarRoom segment featuring Steve Bannon and check out this Quick hit:
THE POLITICAL CLASS WON'T MAKE MEANINGFUL CUTS "The American people are disgusted. — The American people need to turf out the $7 Trillion gang."@brateconomics pic.twitter.com/VWp7qZH0vE
— Bannon’s WarRoom (@Bannons_WarRoom) May 10, 2025
