Steve Bannon, former advisor to President Donald Trump and host of the WarRoom program, delivered a stark warning about the state of the U.S. economy on Thursday’s show, urging immediate financial restructuring and deep spending cuts. In recent comments, Bannon emphasized that the country’s economic practices are unsustainable and that tough decisions must be made to avert a worsening crisis. His analysis is vital as the nation faces rising debt, inflation, and the reality of an economic turnaround under the next administration.

Bannon called attention to the critical role of “patient capital” in addressing economic challenges. He explained that while U.S. assets are vast, they are not being utilized to their full potential.

"The balance sheet just kind of sits there,” he said, calling for more strategic investments in the country’s infrastructure and industries.

Bannon proposed using these resources to create funds that would boost U.S. investment and economic recovery.

However, Bannon also noted the urgency of addressing the national debt, which he believes is the biggest obstacle to financial stability. "We’re not close to being sustainable,” Bannon said. He criticized current fiscal policies, claiming that they rely too much on long-term debt rather than taking action to reduce spending in critical areas. Bannon pointed out that the U.S. is running on a "fantasy talk” of a prosperous future without cutting back on spending now. He believes the federal government must take immediate action to balance its books.

Check out this short clip of Bannon’s comments:

Bannon: "We Don't Have The Money To Rebuild The World" pic.twitter.com/8uB6xszrwQ

— Bannon’s WarRoom (@Bannons_WarRoom) January 16, 2025

A key component of Bannon’s warning was the need for budget cuts in discretionary spending. While some may suggest targeting entitlement programs, Bannon rejected this approach, stating that Americans are not ready to accept cuts in social security or healthcare. "Right now, you cannot touch entitlements because the American people are not convinced that you’re doing anything but scoring them over,” he argued. Instead, he stressed that the focus should be on cutting discretionary spending, including defense and social programs. "You’re going to have to look at discretionary. If you can only get discretion, or you’ve got to look at defense and the social programs,” Bannon asserted.

More from Bannon:

Bannon On The Biden Admin: "They're The Ones Who Initiated This Over The Top Spending" pic.twitter.com/jU4pnQoeUt

— Bannon’s WarRoom (@Bannons_WarRoom) January 16, 2025

Bannon’s remarks come at a time when inflation is hitting Americans hard. Prices for essential goods like food, housing, and healthcare are rising rapidly, and wages are struggling to keep up. Bannon suggested that the U.S. must make difficult decisions to prevent further economic deterioration. "Inflation is not going to go away. It’s only going to get worse,” he warned. With the government on track to sell $7 trillion in Treasury bonds this year alone, he noted that the country cannot afford to ignore these issues any longer.

The most critical part of Bannon’s message is his call for a “turnaround” led by President Trump, who he believes can restore fiscal discipline and economic growth. "President Trump’s coming back. The American people said, ‘We can’t take any more Biden. We’ve got to turn this thing around.’” Bannon’s optimism about Trump’s return, while grounded in his belief in Trump’s ability to fix the economy, is also a recognition of the failure of the current administration’s fiscal policies.

Bannon’s remarks are critical given the U.S.’s financial challenges in the coming years. The federal government’s growing debt, coupled with inflation and global economic instability, threatens the economic stability of future generations. As Bannon pointed out, the U.S. cannot continue to rely on unrealistic projections of future growth or ignore the mounting costs of its fiscal policies. With President Trump poised to return to the political stage, these financial issues will likely become central to his campaign.

In conclusion, Bannon’s call for a hard look at the nation’s finances is a reminder that tough choices lie ahead. If the U.S. is to avoid further economic decline, there must be a serious effort to balance the budget, cut discretionary spending, and address long-term fiscal challenges. The path forward will not be easy, but according to Bannon, it’s the only way to ensure the nation’s economic future remains viable.