Latest / Breaking Points with Krystal and Saagar / 9/21/26: AI Nearly Starts China War, Diesel Prices Skyrocket, Ed Sheeran Mocked For Apology On Palestine

Transcript

9/21/26: AI Nearly Starts China War, Diesel Prices Skyrocket, Ed Sheeran Mocked For Apology On Palestine · Breaking Points with Krystal and Saagar

• 0:00
  Speaker 1: Hey guys, Ready or Not 2024 is here and we
• 0:04
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  Speaker 2: But enough with that, let's get to the show.
• 0:24
  Speaker 1: A stunning new report indicates that we almost started a
• 0:28
  Speaker 1: war with China based on a faulty AI intelligence report.
• 0:33
  Speaker 1: Let's put this up on the screen from CNN. This
• 0:36
  Speaker 1: is pretty stunning and underscores how, while we have been
• 0:39
  Speaker 1: talking a lot about the long-term risks of AI, which
• 0:41
  Speaker 1: I think we should talk about and be concerned about,
• 0:43
  Speaker 1: there are a lot of short-term risks. involving AI hallucinations
• 0:46
  Speaker 1: and human stupidity, the combination of which could be completely
• 0:50
  Speaker 1: disastrous for the country and the world. So this is
• 0:52
  Speaker 1: the headline here, exclusive.
• 0:54
  Speaker 2: U.S.
• 0:54
  Speaker 1: Military had close call after using AI for false intelligence report.
• 1:00
  Speaker 1: The intelligence report circulated across the U.S. military this spring
• 1:03
  Speaker 1: in the midst of the war with Iran immediately set
• 1:06
  Speaker 1: off alarm bells. A Chinese ship in the Middle East
• 1:09
  Speaker 1: was transporting components of a nuclear weapons program. The U.S.
• 1:14
  Speaker 1: military swung into action with plans to intercept the vessel,
• 1:17
  Speaker 1: according to four sources. According to two of those sources,
• 1:20
  Speaker 1: armed members of the U.S. military were preparing to board
• 1:23
  Speaker 1: the ship. Military planes were in the air. It was
• 1:27
  Speaker 1: only just before the planned operation that officials dug deeper
• 1:30
  Speaker 1: into the report put together by a special operations command
• 1:34
  Speaker 1: analyst and found it had been generated with the help
• 1:36
  Speaker 1: of artificial intelligence and that a chat bot the analyst
• 1:40
  Speaker 1: had used inaccurately identified the material the ship was carrying.
• 1:45
  Speaker 1: The report, according to one of the sources, was, quote,
• 1:47
  Speaker 1: entirely false, but it also, quote, almost started a war.
• 1:53
  Speaker 1: Any US operation against a Chinese vessel could have risked
• 1:56
  Speaker 1: spiraling into an armed conflict between the two nations. This
• 2:00
  Speaker 1: is terrifying and completely insane. They had an AI chat
• 2:05
  Speaker 1: bot that hallucinated intelligence about this ship carrying components for
• 2:11
  Speaker 1: a nuclear weapons program, a Chinese ship. And we were
• 2:15
  Speaker 1: this close to taking what would have been an extraordinary
• 2:19
  Speaker 1: inflammatory action, risking war with China based on an AI hallucination.
• 2:26
  Speaker 1: I mean, Right.
• 2:27
  Speaker 2: And the chain of all this, so they say in
• 2:30
  Speaker 2: this particular instance, the analysts queried a chatbot about some
• 2:34
  Speaker 2: of the intelligence reporting on the ship's manifest that had
• 2:37
  Speaker 2: originated with the Special Operations Command Pacific, which was based
• 2:40
  Speaker 2: in Hawaii. It's not even clear right now whether that
• 2:43
  Speaker 2: chatbot was commercially available. or a US government one. I'm
• 2:46
  Speaker 2: going to bet that it probably was one of those
• 2:48
  Speaker 2: internal US government products that ChatGPT, Claude, and Palantir have
• 2:52
  Speaker 2: all built kind of inside for their use. The bot
• 2:55
  Speaker 2: fused together open source intelligence with secret signals intelligence and
• 3:00
  Speaker 2: government holdings and reached its fateful conclusion about the material
• 3:03
  Speaker 2: that the ship was carrying. The analysts then used AI
• 3:06
  Speaker 2: again to package the findings into a standard intelligence report
• 3:10
  Speaker 2: the kind that is trusted by military officials. So you
• 3:13
  Speaker 2: hallucinate it. I mean, this is classic, actually, why what's
• 3:16
  Speaker 2: happening in colleges right now is so bad. What you
• 3:19
  Speaker 2: do is you kind of take your raw research from
• 3:22
  Speaker 2: ChatGPT or others, and then you have ChatGPT or Claude
• 3:25
  Speaker 2: or any of these others package the raw research into
• 3:29
  Speaker 2: something even more polished. So it looks like all the
• 3:32
  Speaker 2: back research has been done, but if the chain is
• 3:34
  Speaker 2: faulty from the very beginning... Then it gets created into
• 3:37
  Speaker 2: this standard kind of briefing. The briefing then, look, these
• 3:40
  Speaker 2: 60-year-old commanders are like, all right, you know, they've been
• 3:43
  Speaker 2: reading these intelligence reports for years. It looks exactly the same.
• 3:46
  Speaker 2: They go, yep, intel solid. Let's launch the operation. Obviously,
• 3:50
  Speaker 2: they know how that's going to work. Special Operations Command
• 3:53
  Speaker 2: and the Pentagon then, you know, launch the entire mission.
• 3:56
  Speaker 2: And it's only until somebody who is like, hold on
• 3:59
  Speaker 2: a second. They're sending.
• 4:00
  Speaker 1: Where is this coming from?
• 4:01
  Speaker 2: Where is this coming from? that they start to look
• 4:04
  Speaker 2: into it. The other problem is that all of it
• 4:06
  Speaker 2: was very decentralized, is it doesn't appear that any of
• 4:10
  Speaker 2: this went very high up the chain of command. So
• 4:13
  Speaker 2: maybe Hegseth knew about it. Did the White House know
• 4:15
  Speaker 2: about it? I mean, to my mind, if you're going
• 4:17
  Speaker 2: to launch an operation on a Chinese ship, the president
• 4:20
  Speaker 2: himself needs to sign off. on something like that. I mean,
• 4:22
  Speaker 2: that is such world-changing implications. But that's, again, this is
• 4:26
  Speaker 2: the problem with getting into a war in the first
• 4:28
  Speaker 2: place is that's not feasible, by and large, for every
• 4:32
  Speaker 2: single military operation. You kind of delegate within the bounds.
• 4:36
  Speaker 2: And one of the bounds he probably set out was
• 4:38
  Speaker 2: you don't even need commander-in-chief authority. If nuclear material is
• 4:41
  Speaker 2: on its way to Iran, you go in, you go
• 4:43
  Speaker 2: ahead and intercept it. Right. Which, again, is scary. But
• 4:46
  Speaker 2: you can understand exactly how.
• 4:47
  Speaker 1: That seems that even that seems so wild. Even if
• 4:50
  Speaker 1: it's not China, any sort of nuclear material coming in
• 4:54
  Speaker 1: from any I mean, you would think that that would
• 4:55
  Speaker 1: be involvement all the way up to the highest level.
• 4:59
  Speaker 1: And so, you know, the crazy thing is that according
• 5:03
  Speaker 1: to a lot of research that's out there at this point,
• 5:06
  Speaker 1: If this same intelligence analyst had gotten this intel from
• 5:10
  Speaker 1: a human source, I bet you he would have questioned
• 5:13
  Speaker 1: it more. He would have said, okay, this is an
• 5:14
  Speaker 1: extraordinary claim. How do you know? Where are you getting
• 5:17
  Speaker 1: this from? But there is unfortunately a typical human bias
• 5:22
  Speaker 1: in favor of the machines. where if the AI tells you,
• 5:25
  Speaker 1: people are more likely to accept that without looking into
• 5:29
  Speaker 1: it than if you get it from a human being.
• 5:32
  Speaker 1: So we're seeing that with this near miss of an incident.
• 5:37
  Speaker 1: And then the other place, we can put D2 up
• 5:39
  Speaker 1: on the screen, You know, obviously, in the first day
• 5:41
  Speaker 1: of the war, we attacked a girls' school, mass murdering.
• 5:45
  Speaker 1: By the way, those little girls would have been attending
• 5:47
  Speaker 1: their first day of school in Iran literally today. And instead, they,
• 5:52
  Speaker 1: you know, completely— I mean, just horror, horror all the way around.
• 5:56
  Speaker 1: The worst— attack on civilians in modern history from America.
• 6:01
  Speaker 1: And the new reporting says that AI contributed to that. Now,
• 6:05
  Speaker 1: you can't just say it's AI's fault here, though. This
• 6:09
  Speaker 1: fault lies directly with the human beings. You had a rush.
• 6:14
  Speaker 1: to come up with an extensive target list. You have,
• 6:18
  Speaker 1: as they say here, outdated imagery and an over-reliance on AI.
• 6:23
  Speaker 1: So in their rush to spin up a large target
• 6:26
  Speaker 1: list to launch this aggressive, offensive war of choice, they
• 6:30
  Speaker 1: skipped over all of the steps that you would have
• 6:33
  Speaker 1: wanted to take to make sure that you're not mass
• 6:35
  Speaker 1: murdering little children in their school uniforms while they're at school.
• 6:40
  Speaker 1: And so because of that rush, the fact that also
• 6:44
  Speaker 1: Hegseth has dismantled the office that is supposed to look
• 6:49
  Speaker 1: into potential civilian deaths and make sure that there are
• 6:52
  Speaker 1: safeguards there. And then because of this reliance on AI,
• 6:56
  Speaker 1: you end up with an absolutely monstrous, horrific, War crime
• 7:01
  Speaker 1: that was perpetrated on the very first day of this war.
• 7:06
  Speaker 1: So you can see how there is already where we
• 7:09
  Speaker 1: are now with AI reliance. There is a combustible, tragic,
• 7:14
  Speaker 1: destructive combination of human stupidity over reliance, trusting these products blindly.
• 7:20
  Speaker 1: and use of AI that's being fully integrated into government
• 7:24
  Speaker 1: systems that in many ways has already been fully integrated
• 7:27
  Speaker 1: into consequential government systems, including within the Department of War
• 7:32
  Speaker 1: where people's lives literally depend on it.
• 7:34
  Speaker 2: It's really scary because I think that this is the
• 7:37
  Speaker 2: most extreme example, but I was talking with a good
• 7:40
  Speaker 2: friend of mine who was talking about this at a
• 7:41
  Speaker 2: company level, and the amount of AI that is now
• 7:46
  Speaker 2: integrated into top CFO and CEO decisions is You just
• 7:50
  Speaker 2: have to think about the consequences of this. Let's say
• 7:52
  Speaker 2: that there was a potential AI bubble, but you're using
• 7:55
  Speaker 2: your AI to power all your finances. Wouldn't the AI
• 7:59
  Speaker 2: have a self-interest in telling you to keep funding it
• 8:01
  Speaker 2: even if it was gone? And I was like, wow.
• 8:03
  Speaker 2: And he brought this up to me. I said, I
• 8:04
  Speaker 2: didn't even think about that. But it's one of those
• 8:07
  Speaker 2: where we've outsourced so much decision-making and so much research
• 8:10
  Speaker 2: that what we think is an independent decision is not
• 8:14
  Speaker 2: independent actually at all. It's only dependent really on the
• 8:17
  Speaker 2: tools that you're using in front of you. Trump also,
• 8:21
  Speaker 2: what's so become clear to me, and I was talking
• 8:23
  Speaker 2: about this with several friends, at the end of the day,
• 8:26
  Speaker 2: why does Trump care? It's purely self-interested. The AI capex
• 8:30
  Speaker 2: spend is the only thing floating this economy.
• 8:32
  Speaker 1: That's it.
• 8:33
  Speaker 2: He has to defend it. And the AI oligarchs, Jensen
• 8:38
  Speaker 2: and all of these others, The safety stuff is just
• 8:41
  Speaker 2: too inconvenient for the stock price. The fact that Sam
• 8:45
  Speaker 2: Altman's not going public, that's not good for the U.S.
• 8:48
  Speaker 2: equities market. It's good for humanity, but it may not
• 8:51
  Speaker 2: necessarily be good for the U.S. equities market. Anthropic, they
• 8:54
  Speaker 2: need to go public, and they need to keep all
• 8:57
  Speaker 2: these data centers being pushed up everywhere. You can actually
• 8:59
  Speaker 2: see this with Trump. Put D3 up here on the screen,
• 9:02
  Speaker 2: so I won't even read all of it. Over the years,
• 9:04
  Speaker 2: there have been many hoaxes, etc., blah, blah, blah, blah, blah.
• 9:08
  Speaker 2: All right, now we'll finally get to AI. We will
• 9:10
  Speaker 2: not in any way hinder or stifle the growth of
• 9:14
  Speaker 2: this incredible industry. Rather, we will cherish it, help it,
• 9:17
  Speaker 2: and watch it as it grows. However, we will also
• 9:20
  Speaker 2: be looking for bad, and we can do that very
• 9:22
  Speaker 2: easily with our existing criminal and civil justice system. For
• 9:25
  Speaker 2: this purpose, I am forming the AI Force, which, much
• 9:28
  Speaker 2: like I did with Space Force, has been a tremendous
• 9:30
  Speaker 2: success in my first term. To that end, I will
• 9:33
  Speaker 2: be announcing in the near future an AI Czar. Only
• 9:36
  Speaker 2: high IQ individuals need apply. AI is the next industrial
• 9:40
  Speaker 2: revolution or internet, but will be even larger and more impactful,
• 9:43
  Speaker 2: possibly as much as 25% of our country's GDP. We
• 9:47
  Speaker 2: are leading China, the rest of the world. I intend
• 9:49
  Speaker 2: to keep it that way. Ironically, people who are fully
• 9:53
  Speaker 2: AI-pilled were saying, hey, 25% is far too low, sir,
• 9:58
  Speaker 2: to be pointing out. Remember, anthro. said that its total
• 10:01
  Speaker 2: addressable market is the entire US economy of $ 30 trillion.
• 10:04
  Speaker 2: But that is why the positioning of the White House,
• 10:09
  Speaker 2: and there's even been many reports, many people inside the
• 10:11
  Speaker 2: White House are like, ah, I'm not so sure about this,
• 10:13
  Speaker 2: causes real problems. In the middle of diesel and the
• 10:17
  Speaker 2: gas crisis and inflation, where it is right now, this
• 10:20
  Speaker 2: is all we have. This is it. It really is.
• 10:23
  Speaker 2: I mean, I'm looking right now. So gas is $ 4. 50
• 10:26
  Speaker 2: a gallon. And let me see where the US equities
• 10:28
  Speaker 2: markets are. Yeah, equities are actually up after market. Obviously,
• 10:32
  Speaker 2: it's one day, et cetera. But we live in a
• 10:35
  Speaker 2: world where the Baba Mandap Strait and the entire strategic
• 10:39
  Speaker 2: situation looks so perilous for us and the US consumer
• 10:42
  Speaker 2: looks so screwed heading into a fourth quarter where retail
• 10:45
  Speaker 2: usually is, you know, the backbone of the U S
• 10:48
  Speaker 2: economy is people buying dumb Christmas gifts. they don't actually
• 10:51
  Speaker 2: need that's literally what keeps us all propped up and
• 10:54
  Speaker 2: our equities market is still up in aftermarket and we
• 10:57
  Speaker 2: could be heading for potential all-time highs nearly every other
• 11:00
  Speaker 2: month with the s p 500 it's only because of
• 11:02
  Speaker 2: the tech stocks.
• 11:03
  Speaker 1: Yeah no absolutely the whole economy is a bet on
• 11:06
  Speaker 1: this and you look at the we've talked before about
• 11:09
  Speaker 1: this chart that shows as data center construction increases all
• 11:13
  Speaker 1: other construction decreases i mean it is eating the entire
• 11:16
  Speaker 1: economy And so Trump, who cares a lot about the
• 11:19
  Speaker 1: stock market anyway, but has to care a lot about
• 11:22
  Speaker 1: the stock market because the whole economic situation is quite
• 11:25
  Speaker 1: dire already. That's why, of course, he's not going to
• 11:28
  Speaker 1: put any limits on this. Of course, he's not going
• 11:30
  Speaker 1: to rein the industry in. His entire presidency, the story
• 11:33
  Speaker 1: of it, has been giving the tech oligarchs everything they
• 11:36
  Speaker 1: possibly could want. And Jensen Huang, the CEO of Nvidia,
• 11:41
  Speaker 1: has really emerged as a villain here who is quite duplicitous,
• 11:45
  Speaker 1: I think, in terms of the way that he the
• 11:47
  Speaker 1: way that he presents himself. And he has really gained
• 11:50
  Speaker 1: Trump's trust and confidence. It's worth remembering, you know, NVIDIA
• 11:55
  Speaker 1: is at the center of all of this circular financing.
• 11:58
  Speaker 1: They want the shopping spree of companies coming to them,
• 12:01
  Speaker 1: buying their chips to go on forever. That's what they want.
• 12:05
  Speaker 1: So he has a direct financial interest in saying, oh,
• 12:07
  Speaker 1: there's no problems here. We need to just keep going
• 12:10
  Speaker 1: off to the races. The whole economy depends on this.
• 12:12
  Speaker 2: Let's go, sir.
• 12:14
  Speaker 1: And Trump is always looking for the person who's going
• 12:16
  Speaker 1: to tell him what he wants to hear. So Jensen
• 12:19
  Speaker 1: seems to have really gained his trust and have his
• 12:22
  Speaker 1: ear right now. And we played some last week of
• 12:24
  Speaker 1: Trump calling him while Jensen was on stage at the
• 12:28
  Speaker 1: all-in conference. And you could hear the way that he
• 12:30
  Speaker 1: talked to Trump. Oh, Mr. President, don't worry. We'd never
• 12:34
  Speaker 1: let that happen. You're doing a great job. You know,
• 12:36
  Speaker 1: this is going to be amazing for the country. And
• 12:38
  Speaker 1: that's the way that he is in public. You can
• 12:41
  Speaker 1: only imagine how slavishly, you know, worshipful he is in
• 12:45
  Speaker 1: private to Trump as well. And meanwhile, just again, the
• 12:48
  Speaker 1: total lack of seriousness of this man. Like, what can
• 12:51
  Speaker 1: you even say? Put D4 up on the screen. He
• 12:53
  Speaker 1: put this out. He wants us to vote on a
• 12:57
  Speaker 1: new word for AI because he doesn't like artificial intelligence.
• 13:01
  Speaker 1: He says that maybe we should rename it supreme intelligence
• 13:06
  Speaker 1: or extreme intelligence or superior intelligence. Now, this was the
• 13:11
  Speaker 1: second follow-up tweet where he says, well— Supreme intelligence is
• 13:14
  Speaker 1: losing really badly. People like superior or extreme intelligence. So
• 13:18
  Speaker 1: we're taking supreme intelligence out of the running, deleting it
• 13:21
  Speaker 1: as a qualifier, let you vote for the final two,
• 13:23
  Speaker 1: superior intelligence or extreme intelligence. A fresh vote begins now. Oh,
• 13:27
  Speaker 1: thank you, sir. for the opportunity to participate in the
• 13:31
  Speaker 1: future of the country and have a democratic say over
• 13:33
  Speaker 1: the direction we're going in terms of what we label
• 13:36
  Speaker 1: this extremely powerful and dangerous technology being built by people
• 13:40
  Speaker 1: who want to replace all of human labor and say
• 13:43
  Speaker 1: that it may also destroy all of humanity. Thank you
• 13:46
  Speaker 1: so much for that, sir. I appreciate it.
• 13:47
  Speaker 2: See, to me, it's just clear that this is like Trump.
• 13:51
  Speaker 2: He believes it's very similar to the Iran situation. Everything
• 13:55
  Speaker 2: for him is it'll always work out. and it's always
• 13:58
  Speaker 2: a branding problem. It's not about the reality. It's not
• 14:01
  Speaker 2: about the technology. It's just about branding. Even in the
• 14:04
  Speaker 2: way that he wants to go in the midterms, he
• 14:06
  Speaker 2: genuinely believes, he believes in his core that he has
• 14:09
  Speaker 2: done an incredible job and that it's all about his
• 14:12
  Speaker 2: advisors not selling the war or his accomplishments properly. He
• 14:16
  Speaker 2: thinks it's packaging. And you can understand why the person
• 14:19
  Speaker 2: who became president Through earned media and through The Apprentice
• 14:23
  Speaker 2: would believe something like that.
• 14:25
  Speaker 1: He's also an old man.
• 14:26
  Speaker 3: Right.
• 14:26
  Speaker 1: Who's not going to have to be here to deal
• 14:28
  Speaker 1: with all of the fallout that the rest of us
• 14:31
  Speaker 1: are going to have to deal with or that our
• 14:33
  Speaker 1: children and grandchildren are going to have to deal with
• 14:35
  Speaker 1: and clearly doesn't give a shit about anyone except himself. Right.
• 14:38
  Speaker 2: And his family. And who are also getting very, very
• 14:40
  Speaker 2: filthy rich.
• 14:41
  Speaker 1: You know, it is funny because they talk about the,
• 14:45
  Speaker 1: you know, the AI technology is having like spiky intelligence
• 14:48
  Speaker 1: is kind of the word for it, where on the
• 14:50
  Speaker 1: one hand it can solve a millennium math problem, which
• 14:52
  Speaker 1: is like, you know, the best humans were unable to.
• 14:54
  Speaker 1: You win a million dollars if you're able to do
• 14:56
  Speaker 1: one of these things. It can identify multiple zero day exploits,
• 15:00
  Speaker 1: which are like, you know, hackers exploits. can be paid
• 15:03
  Speaker 1: hundreds to millions of dollars to identify these. And yet
• 15:06
  Speaker 1: on the other hand, you can ask it some basic
• 15:08
  Speaker 1: thing and it'll just like completely invent an answer and
• 15:11
  Speaker 1: lacks the intelligence to even think of like, hey, would
• 15:14
  Speaker 1: the humans want me to hack into this company right now?
• 15:16
  Speaker 1: There's some basic sort of morality and common sense intelligence
• 15:19
  Speaker 1: that's lacking there. Trump is a little bit like that.
• 15:21
  Speaker 1: His intelligence is very spiky. In some ways, he is
• 15:24
  Speaker 1: the dumbest person on the planet. I have no doubt.
• 15:28
  Speaker 1: He actually likes to use AI for all of his
• 15:30
  Speaker 1: freaking boomer slop. Does he have any understanding of what
• 15:34
  Speaker 1: this is actually doing, what it's capable of, of envisioning
• 15:37
  Speaker 1: what the world may look like if the most dire,
• 15:41
  Speaker 1: either positive or negative visions of this technology come to fruition?
• 15:45
  Speaker 2: No.
• 15:46
  Speaker 1: But he is this sort of marketing brand branding savant.
• 15:50
  Speaker 1: And so it's part of what makes Trump very difficult
• 15:53
  Speaker 1: for people to wrap their heads around, that someone could
• 15:55
  Speaker 1: be so talented in some ways and so stupid at
• 15:58
  Speaker 1: the same time. But he's kind of a mirror image
• 16:00
  Speaker 1: reflection of the A.I.
• 16:01
  Speaker 2: Many of our presidents actually will show you one of
• 16:03
  Speaker 2: them who appears to be this, you know, great thinking
• 16:06
  Speaker 2: article reader and all of this most well-spoken man you
• 16:10
  Speaker 2: could ever envision. But then when he actually was president,
• 16:13
  Speaker 2: couldn't literally do anything. But before I get to that,
• 16:16
  Speaker 2: you know, you said something funny about the A.I., and
• 16:18
  Speaker 2: all of that. I actually think that's the most human
• 16:20
  Speaker 2: thing about AI, and it reflects the people who built it,
• 16:22
  Speaker 2: because if you've ever met somebody who is top 1%
• 16:26
  Speaker 2: or top 0.5% IQ, that describes them to a T.
• 16:30
  Speaker 2: They're incredible at mental math. They'll be incredible at mental math,
• 16:35
  Speaker 2: have a visionary ability to look deeply. I think the
• 16:40
  Speaker 2: most interesting thing about high IQ people is their cross-domain knowledge,
• 16:43
  Speaker 2: and they can use things cross-domain to come to a
• 16:45
  Speaker 2: conclusion which you literally never would be able to see.
• 16:48
  Speaker 2: But then you would take them to the party, freak,
• 16:50
  Speaker 2: and just weirdo. Or you have the most messed up
• 16:53
  Speaker 2: personal lives or have no ability to connect to other people.
• 16:57
  Speaker 2: They get very basic facts wrong. They don't know how
• 16:59
  Speaker 2: to do their own laundry, things like that. So to me,
• 17:02
  Speaker 2: the chatbot is an exemplar of the people who built it.
• 17:05
  Speaker 2: High IQ, probably semi-autistic weirdos who are mental math geniuses.
• 17:11
  Speaker 2: coding problems. And the rest of us were like, I
• 17:13
  Speaker 2: don't know, man, this seems pretty weird to me. So
• 17:15
  Speaker 2: that's just my take.
• 17:16
  Speaker 1: My dad, love him dearly. PhD physicist. I have some
• 17:20
  Speaker 1: experience with this.
• 17:22
  Speaker 2: This is most of the Injeti family. You're looking at
• 17:24
  Speaker 2: the only Injeti male on both sides who doesn't have
• 17:27
  Speaker 2: a PhD in electrical engineering. So I'm one of the
• 17:30
  Speaker 2: only people who could actually give at least some vision
• 17:34
  Speaker 2: into that.
• 17:38
  Speaker 1: Obama was at Colgate University in upstate New York, and
• 17:41
  Speaker 1: he spoke on a number of topics, but he spent
• 17:43
  Speaker 1: a long time talking about AI. And it was such
• 17:47
  Speaker 1: a stark contrast with Trump, like tweeting, should we call
• 17:50
  Speaker 1: it superior intelligence or supreme intelligence? Because he clearly has
• 17:54
  Speaker 1: thought about it, knows some things about it, is able
• 17:57
  Speaker 1: to articulate that clearly, seems to take it seriously. Let's
• 18:01
  Speaker 1: take a listen to his comments, and then we'll talk
• 18:03
  Speaker 1: about the Obama, the pitfalls with Obama on the other
• 18:07
  Speaker 1: side of it.
• 18:08
  Speaker 4: If we are thinking about AI just in terms of
• 18:11
  Speaker 4: how do we cure cancer or get better energy, you
• 18:15
  Speaker 4: can do that without having a gentic AI and having
• 18:18
  Speaker 4: it just roaming free in the internet. The reason you
• 18:22
  Speaker 4: are doing that is because you have to market a
• 18:26
  Speaker 4: product that people will pay money for. That's a misalignment
• 18:30
  Speaker 4: between what our society needs and what we need. the
• 18:35
  Speaker 4: commercial imperatives that these companies are facing. Not because necessarily
• 18:39
  Speaker 4: they're trying to do bad things, but because they've gotta
• 18:45
  Speaker 4: justify these valuations. So that's one more reason why it
• 18:50
  Speaker 4: is really important for us to have a competent government
• 18:56
  Speaker 4: and a serious bipartisan conversation around this issue, and we
• 19:00
  Speaker 4: have to do it fast. And I would encourage voters
• 19:05
  Speaker 4: to pay attention to this. If somebody does not have
• 19:10
  Speaker 4: a serious plan for how to deal with this, then
• 19:14
  Speaker 4: they're not meeting the moment and you should probably look
• 19:18
  Speaker 4: for somebody else.
• 19:19
  Speaker 1: So I want to underscore his point there because I
• 19:21
  Speaker 1: think it's a very important one. You know, I am
• 19:25
  Speaker 1: of the mind that we should stop frontier AI development,
• 19:29
  Speaker 1: that we should not, that we should ban what's called
• 19:31
  Speaker 1: recursive self-improvement. Ezra Klein had a very good essay about
• 19:35
  Speaker 1: exactly this. which effectively means you are handing over human
• 19:39
  Speaker 1: control to the AI to build themselves. You are deciding
• 19:42
  Speaker 1: to take the human out of the loop. You know,
• 19:45
  Speaker 1: there's a lot of concern, again, justifiably so, about humans
• 19:48
  Speaker 1: losing control. That amounts to human handing control to the AI.
• 19:53
  Speaker 1: And there's a sense, I think, that a lot of
• 19:56
  Speaker 1: people who hold my position are just against the technology altogether.
• 19:59
  Speaker 1: That's not true. I use the technology myself. I think
• 20:01
  Speaker 1: the technology is really cool. I think it's exciting, the
• 20:04
  Speaker 1: idea of what it could be deployed for. I buy
• 20:08
  Speaker 1: into some of the positive possibilities of what could be
• 20:11
  Speaker 1: done with it. But what Obama's pointing out here is
• 20:14
  Speaker 1: that they're selling you on the idea that you have
• 20:16
  Speaker 1: to have this frontier development and you have to have
• 20:18
  Speaker 1: AI that is agentic in order to accomplish those positive
• 20:23
  Speaker 1: scientific or medical developments. And the reason that the AI
• 20:28
  Speaker 1: companies want to sell you that is because the agentic
• 20:30
  Speaker 1: AI is the piece that could theoretically replace human beings
• 20:34
  Speaker 1: in the workforce. Agentic AI just means basically AI that
• 20:37
  Speaker 1: can sort of like go out in the world and
• 20:39
  Speaker 1: do its own thing. Very different from the chatbot that
• 20:42
  Speaker 1: you're likely using on a day-to-day basis where you ask
• 20:44
  Speaker 1: it for something and it delivers for you. The agentic
• 20:48
  Speaker 1: AI is able to take actions in the world without
• 20:51
  Speaker 1: being under direct human oversight. And so what Obama is
• 20:55
  Speaker 1: saying here is that many of the potential positive benefits
• 20:59
  Speaker 1: of AI are can come without using agentic AI. It
• 21:03
  Speaker 1: can be a tool in the hands of the researcher.
• 21:05
  Speaker 1: It can be a tool in the hands of the coder,
• 21:07
  Speaker 1: of the scientist. of the people who would really benefit
• 21:10
  Speaker 1: from this in terms of making these technological breakthroughs that
• 21:13
  Speaker 1: would be very exciting for AI. I think that's a
• 21:16
  Speaker 1: very important point because we're not saying you can't have
• 21:19
  Speaker 1: this technology at all, we have to put it all
• 21:20
  Speaker 1: back in the bottle, although there are probably some of
• 21:22
  Speaker 1: my husband included who would say that's probably the way
• 21:24
  Speaker 1: to go. But you can sort of have your cake
• 21:27
  Speaker 1: and eat it too. We don't have to go down
• 21:30
  Speaker 1: this path of recursive self-improvement. We don't have to go
• 21:32
  Speaker 1: down this path of fully embracing agentic AI. And so
• 21:36
  Speaker 1: I think that's an important point. I said we'll talk
• 21:38
  Speaker 1: a little bit about the warts of Obama. I mean,
• 21:40
  Speaker 1: you can't help but look at this, and David Sordo
• 21:41
  Speaker 1: was making this point, and go, okay, that's great and
• 21:43
  Speaker 1: well and good. And this is, again, the pitfall of
• 21:45
  Speaker 1: Obama so often. He is intelligent enough to understand it.
• 21:48
  Speaker 1: He's in the circles with a lot of these tech guys. Like,
• 21:51
  Speaker 1: are you doing anything other than speaking on a stage
• 21:53
  Speaker 1: at a university about this? If you genuinely take seriously,
• 21:57
  Speaker 1: as I do, some of the more existential questions, concerns
• 22:00
  Speaker 1: about AI development and AI safety. What are you doing
• 22:05
  Speaker 1: about it outside of just, you know, answering some questions
• 22:08
  Speaker 1: from college students?
• 22:08
  Speaker 2: What do you mean? What is he doing about it?
• 22:10
  Speaker 2: Who else is going to take a multimillion dollar multi-year
• 22:12
  Speaker 2: deal from Reed Hastings over at Netflix? Who else is
• 22:15
  Speaker 2: going to be partying with Richard Branson and all of
• 22:18
  Speaker 2: these other like billionaire Reed Hoffman? I mean, it's funny.
• 22:22
  Speaker 2: The people who work for Obama are doing more about
• 22:24
  Speaker 2: AI than Obama himself, like Jay Carney. who just, even
• 22:28
  Speaker 2: this could be a total sigh-out.
• 22:30
  Speaker 5: Oh, Carney.
• 22:30
  Speaker 2: Yeah, this whole, like, he worked over at Amazon, and
• 22:33
  Speaker 2: now he's going to go work for, like, Safety AI,
• 22:35
  Speaker 2: and now Kamala's being like, this is the future. So, yeah,
• 22:38
  Speaker 2: that's my, look, people know, I have Obama derangement syndrome.
• 22:41
  Speaker 2: I hate Obama. Because for years, like, this is what
• 22:44
  Speaker 2: the liberal intelligentsia just scooped up about oh, he's so
• 22:47
  Speaker 2: high-minded and he reads the New Yorker. It's like, who
• 22:51
  Speaker 2: gives a shit? What are you going to do about it?
• 22:53
  Speaker 2: What are you actually going to do? You left the
• 22:55
  Speaker 2: country worse off than you found it. I mean, come on.
• 22:58
  Speaker 2: And that's the basic metric.
• 22:59
  Speaker 1: I know. And I agree with all of that. But
• 23:01
  Speaker 1: I will say, hearing this, I was like, oh my God,
• 23:04
  Speaker 1: someone who's actually intelligent.
• 23:05
  Speaker 2: But that's what you can't fall for.
• 23:06
  Speaker 1: It's fake. We had that as president. We had that
• 23:07
  Speaker 1: as president. But we- But it was better than what
• 23:09
  Speaker 1: we've got now. I mean, he at least didn't start
• 23:11
  Speaker 1: a war with Iran. He did the, you know, JCPOA.
• 23:14
  Speaker 1: It just, you know, it did... It's easy to forget
• 23:17
  Speaker 1: that there was a time in the country when you
• 23:19
  Speaker 1: didn't have Jake Paul and Logan Paul at the White
• 23:22
  Speaker 1: House and that it wasn't all just, like, a complete
• 23:25
  Speaker 1: joke and a clown show. And so I... absolutely accept
• 23:28
  Speaker 1: all of his arguments. I've been a major critic of Obama,
• 23:31
  Speaker 1: the way he reported himself in the presidency will continue
• 23:33
  Speaker 1: to be a critic of Obama, but there was something
• 23:35
  Speaker 1: to listening to that. And this is, I think this
• 23:37
  Speaker 1: is why his approval rating is so high still.
• 23:39
  Speaker 6: Yeah.
• 23:40
  Speaker 1: He is the most popular politician in America because people
• 23:43
  Speaker 1: look at this and they're like, Oh my God, he's
• 23:45
  Speaker 1: actually thoughtful. He's actually intelligent. Imagine having a country that
• 23:48
  Speaker 1: was run by thoughtful and intelligent. Right.
• 23:50
  Speaker 2: But we tried that and it didn't actually work out
• 23:51
  Speaker 2: that well. Like, that's my point is that at the
• 23:54
  Speaker 2: end of the day, like he's not, he was a
• 23:55
  Speaker 2: bad president. He, you know, he was great at getting
• 23:58
  Speaker 2: himself elected. His signature, you know, his signature accomplishment of
• 24:03
  Speaker 2: health care has personally driven my health care up costs
• 24:06
  Speaker 2: like dramatically. You can blame, I guess. The point is,
• 24:09
  Speaker 2: is he fucked with the system and he left it
• 24:11
  Speaker 2: worse off. He got Trump elected. I could go on forever.
• 24:14
  Speaker 2: But the problem is and look, I think it's actually
• 24:17
  Speaker 2: possible that we're going to swing back towards an Obama
• 24:19
  Speaker 2: because so many people. Are going to have the same reaction.
• 24:22
  Speaker 2: This is why I'm bullish on like a John Ossoff
• 24:25
  Speaker 2: type character where, you know, if you dig into the
• 24:27
  Speaker 2: policy stuff, you're like, I don't know about any of this.
• 24:30
  Speaker 2: But a lot of people, they get the warm fuzzies
• 24:32
  Speaker 2: of like being taken care of. And somebody who I
• 24:35
  Speaker 2: remember Rogan would always be like, he is the image
• 24:37
  Speaker 2: of like what you would want from a president. He
• 24:39
  Speaker 2: would always say that. And I was like, OK, but
• 24:42
  Speaker 2: that's there's a lot more.
• 24:43
  Speaker 1: I mean, on the surface level, I think that's true. Yeah.
• 24:45
  Speaker 1: Like very, you know, dignified personally, more in terms of
• 24:50
  Speaker 1: like the way he comports himself with his family is
• 24:53
  Speaker 1: an example. Very intelligent, very thoughtful. But yeah, that doesn't
• 24:58
  Speaker 1: necessarily translate into all of the other pieces.
• 25:01
  Speaker 2: You just described Jimmy Carter. He was like that, too. Absolutely.
• 25:04
  Speaker 1: Very admirable human being.
• 25:05
  Speaker 2: He's a great guy.
• 25:06
  Speaker 1: Yeah.
• 25:06
  Speaker 2: Super great.
• 25:07
  Speaker 1: I would say that Obama's I think the thing that
• 25:10
  Speaker 1: people most associate with Obama's his signature achievement is health care.
• 25:13
  Speaker 1: I think you're right about that. But I actually think
• 25:16
  Speaker 1: his signature achievement was the JCPOA. Oh, the Iran nuclear.
• 25:20
  Speaker 1: And I think that's the best thing that he did
• 25:22
  Speaker 1: in his presidency. And then Trump immediately comes in and
• 25:24
  Speaker 1: just like rips it off.
• 25:25
  Speaker 2: When the history. But now we are where it's funny
• 25:27
  Speaker 2: because at the time was such a big political consequence.
• 25:29
  Speaker 2: People didn't even rate it as such a gigantic achievement.
• 25:32
  Speaker 2: Like half the Democrats were against it. Bob Menendez, Chuck Schumer. Yeah,
• 25:36
  Speaker 2: these guys.
• 25:36
  Speaker 1: No, it took some genuine political courage to push it forward.
• 25:40
  Speaker 4: Right.
• 25:40
  Speaker 2: And it was still at the end of his presidency.
• 25:42
  Speaker 2: So he could gamble. He could kind of go for it.
• 25:43
  Speaker 2: But nobody would have thought, looking back, that it would
• 25:46
  Speaker 2: be one of the most consequential things that he did.
• 25:49
  Speaker 2: I actually think another thing that he didn't do is
• 25:50
  Speaker 2: start a war with Russia over Crimea, which ironically.
• 25:54
  Speaker 1: You know, at the time was way better.
• 25:56
  Speaker 2: People don't remember, man, like, you know, the John McCain's
• 25:58
  Speaker 2: and all of them of the world where they were
• 26:01
  Speaker 2: they were ready to roll the tanks into the middle
• 26:04
  Speaker 2: of the Crimea to Save it or whatever from Russia.
• 26:07
  Speaker 2: So I think actually his foreign policy would looked on
• 26:10
  Speaker 2: like pretty decently. And, you know, like you said, the
• 26:12
  Speaker 2: historians will look back on JCPOA much more. But for
• 26:16
  Speaker 2: the rest of us, for what we were, I guess
• 26:18
  Speaker 2: if you're Gen Z, you don't really remember anything. You
• 26:19
  Speaker 2: just kind of look at something like this. Obamacare was
• 26:22
  Speaker 2: all of it. And also, you know, he's the person
• 26:25
  Speaker 2: who decided Hillary should run. He's the person who told
• 26:27
  Speaker 2: Biden not to run whenever his brain still worked. So
• 26:30
  Speaker 2: there's a lot of huge missteps by Mr. Obama.
• 26:33
  Speaker 1: But should we check in on how these AI agents,
• 26:36
  Speaker 1: what they're up to lately? Because we've got another safety
• 26:39
  Speaker 1: incident here. Just Google had to join the club. Their
• 26:44
  Speaker 1: AI also hacked three different companies in a testing breakout.
• 26:48
  Speaker 1: I think it's really important. I want to underscore this
• 26:51
  Speaker 1: point as well, that there's a lot of conversation about
• 26:54
  Speaker 1: regulating the models before they are released to the public.
• 26:58
  Speaker 1: And there is right now in place under the Trump
• 27:00
  Speaker 1: administration a voluntary regulation. model testing regime before you can
• 27:05
  Speaker 1: release it to the public. But the Hugging Face incident,
• 27:08
  Speaker 1: the Anthropic escapes this now Google saying that their AI
• 27:14
  Speaker 1: Gemini also hacked three companies during testing. These things are
• 27:17
  Speaker 1: happening during testing. So it's not enough to regulate the
• 27:21
  Speaker 1: models that are going to be released to the public.
• 27:23
  Speaker 1: We also have to take control of the models that
• 27:26
  Speaker 1: are being tested because that's where a lot of the
• 27:29
  Speaker 1: most worrying security incidents are. So they say Google's AI system, Gemini,
• 27:35
  Speaker 1: escaped its testing environment in May, hacked into three companies,
• 27:38
  Speaker 1: the search giant said on Friday. Those incidents occurred during
• 27:41
  Speaker 1: tests to measure the cybersecurity capabilities of Gemini, and the
• 27:44
  Speaker 1: AI model stopped its own attacks after logging into the
• 27:47
  Speaker 1: three companies' networks. They go on to say the disclosure
• 27:50
  Speaker 1: follows similar breakouts at Anthropic, OpenAI, and Meta. I guess
• 27:55
  Speaker 1: Grok doesn't have the capabilities to be able to pull
• 27:57
  Speaker 1: this off otherwise. They join the club or else Elon's
• 28:00
  Speaker 1: just better at covering this up. But in any case,
• 28:03
  Speaker 1: you know, I think there's a few things you can
• 28:05
  Speaker 1: say about this. I mean, number one, this is becoming
• 28:07
  Speaker 1: just like par for the course. Put D7 up on
• 28:09
  Speaker 1: the screen. This is a list from the Wall Street
• 28:11
  Speaker 1: Journal of all of the recent AI, rogue AI events.
• 28:16
  Speaker 1: is how they label them. And you can see that
• 28:19
  Speaker 1: it's getting to be quite a lengthy list. The other
• 28:21
  Speaker 1: thing is, why are we just dependent on these companies
• 28:24
  Speaker 1: coming forward and telling us what's going on? We already
• 28:28
  Speaker 1: know OpenAI, at the very least, has covered up multiple
• 28:31
  Speaker 1: incidents and only came forward once researchers, outside researchers, discovered
• 28:36
  Speaker 1: these breaches. So just the very fact that we are
• 28:40
  Speaker 1: allowing these companies to do whatever and tell us whatever
• 28:43
  Speaker 1: they feel like telling us and cover up whatever they
• 28:46
  Speaker 1: don't feel like telling us. You know, the Hugging Face incident,
• 28:50
  Speaker 1: OpenAI only gave researchers very limited insight into what is
• 28:55
  Speaker 1: going on within their company. So that in and of
• 28:57
  Speaker 1: itself seems completely insane. And then I think the other
• 29:00
  Speaker 1: piece that is really worth hammering home is just you
• 29:03
  Speaker 1: cannot only focus on the models that are going to
• 29:05
  Speaker 1: be released to the public, although that is obviously very
• 29:08
  Speaker 1: important as well. You also need to have oversight of
• 29:12
  Speaker 1: of the testing that is going on, of the models
• 29:14
  Speaker 1: that are internal, because they have access to models that
• 29:17
  Speaker 1: are far more powerful than anything that is out on
• 29:20
  Speaker 1: the market for anyone at this point. And I think
• 29:23
  Speaker 1: that's part of why you have so many employees now
• 29:26
  Speaker 1: who are expressing concern, who are coming forward as whistleblowers,
• 29:29
  Speaker 1: whether they're leaving or whether they're staying internally at the company,
• 29:33
  Speaker 1: because they can see the frontier. And I, you know,
• 29:36
  Speaker 1: one point that Ezra made Sagar in his essay that
• 29:39
  Speaker 1: I think is a really important one too, is most
• 29:42
  Speaker 1: of us are engaging with chatbots ask they're like a
• 29:44
  Speaker 1: glorified Google. very different from the model that was able
• 29:50
  Speaker 1: to solve the millennium math problem. Very, very different, or
• 29:54
  Speaker 1: able to identify multiple zero-day exploits. And they also are
• 29:59
  Speaker 1: not just deploying, it wasn't just one AI agent that
• 30:02
  Speaker 1: solved that problem. They put thousands of these things together
• 30:05
  Speaker 1: to work in collaboration and millions of dollars worth of
• 30:08
  Speaker 1: compute towards doing this sort of thing. That capability is
• 30:12
  Speaker 1: so far beyond what the ordinary consumer has access to
• 30:16
  Speaker 1: or the uses that the ordinary consumer is putting it to.
• 30:18
  Speaker 1: And that's part of the disconnect in the conversation, I think,
• 30:21
  Speaker 1: that we're having publicly right now.
• 30:23
  Speaker 2: I mean, it's obvious anybody who kind of knows anything
• 30:25
  Speaker 2: about it, like what we're watching, what was in front
• 30:27
  Speaker 2: of us are like consumer forward. Honestly, the funny thing is,
• 30:30
  Speaker 2: is that ChachiBT, the only thing it did is it
• 30:34
  Speaker 2: made it consumer friendly. Those types of LLMs Google's deep
• 30:38
  Speaker 2: mind had LLM capability from, I had this from an insider,
• 30:41
  Speaker 2: from 2017 onward. They could have launched ChatGPT at any time.
• 30:44
  Speaker 2: They just had never thought about it, about how to
• 30:46
  Speaker 2: make it easily consumer forward. We're four or five years
• 30:49
  Speaker 2: now into this. Everybody realizes that. But that was its
• 30:52
  Speaker 2: only real innovation. And then by going forward like that,
• 30:56
  Speaker 2: it was able to sprint forward in the frontier labs
• 30:58
  Speaker 2: because it brought all this recognition, the researchers, and all
• 31:02
  Speaker 2: of it. But the actual LLM product itself is not
• 31:05
  Speaker 2: that remarkable. That's not what was actually going to change things.
• 31:08
  Speaker 2: What's going to change things is the recursive self-improvement, the AGI,
• 31:11
  Speaker 2: and literally, like you said, tens of millions in compute.
• 31:15
  Speaker 2: The type of problems and things that they were doing,
• 31:17
  Speaker 2: we can't even do that. Even private companies wouldn't even
• 31:20
  Speaker 2: be able to buy some of the access for what
• 31:23
  Speaker 2: they're looking for or use the type of frontier models
• 31:25
  Speaker 2: that they are. So the disconnect, that's part of the
• 31:27
  Speaker 2: reason why you actually should listen to some of the
• 31:29
  Speaker 2: people in the future. If we were to use, or
• 31:32
  Speaker 2: in the Frontier Labs, I mean, if you were to
• 31:33
  Speaker 2: use a Manhattan Project analogy, at the time, there's something,
• 31:37
  Speaker 2: a difference between theoretical and then like, no, we're actually
• 31:40
  Speaker 2: going to do this. Or the people who were present
• 31:43
  Speaker 2: at the Trinity test. Before that, every idea of nuclear
• 31:48
  Speaker 2: warfare or any of that is purely hypothetical. You have
• 31:50
  Speaker 2: no idea. as opposed to the people with the glasses
• 31:52
  Speaker 2: on who are like, holy shit, like we could actually
• 31:55
  Speaker 2: see what it looked like, right? Like there is, like
• 31:57
  Speaker 2: you could have a theoretical discussion versus the actual practical one.
• 32:01
  Speaker 2: You should at least give some credence to the practical.
• 32:03
  Speaker 1: Yeah, absolutely.
• 32:04
  Speaker 2: All right.
• 32:07
  Speaker 1: As of this morning, diesel prices have officially topped $ 6. 50
• 32:12
  Speaker 1: a gallon for the first time in American history. Truckers
• 32:17
  Speaker 1: are sounding off on what this is meaning for them
• 32:20
  Speaker 1: and their livelihoods. This is a compilation from War Perfect Union.
• 32:23
  Speaker 1: Let's go ahead and take a listen.
• 32:24
  Speaker 3: All right, Trump, what are we doing, man?
• 32:26
  Speaker 5: $ 6 diesel, man, is killing truck drivers.
• 32:29
  Speaker 6: Right now, they take me to fuel this one, like,
• 32:32
  Speaker 6: almost a thousand bucks.
• 32:33
  Speaker 2: With the fuel the way it is, maybe you won't
• 32:36
  Speaker 2: be eating today.
• 32:36
  Speaker 3: Diesel prices just hit $ 6 across the country, an all-time high.
• 32:40
  Speaker 5: Have you ever seen.
• 32:41
  Speaker 2: Diesel prices this high?
• 32:42
  Speaker 4: No, I don't think they've ever been this high.
• 32:44
  Speaker 3: We wanted to know how it's affecting workers, so we
• 32:45
  Speaker 3: came out to Fort Collins, Colorado, to talk to truckers
• 32:48
  Speaker 3: who rely on a full tank to do their jobs.
• 32:50
  Speaker 4: We carry 200-gallon tanks, and if it's six bucks, Per gallon,
• 32:54
  Speaker 4: you know, it's talking about 1200 bucks each fillet. The
• 32:58
  Speaker 4: owner-operators are the ones that get hit the most.
• 33:00
  Speaker 3: Owner-operator truck drivers function kind of like small businesses. They
• 33:04
  Speaker 3: own their own trucks and have to pay for all
• 33:05
  Speaker 3: truck expenses out of their own pocket, including their diesel.
• 33:09
  Speaker 2: Do you pay out of your own pocket?
• 33:10
  Speaker 3: I do, yeah. And this record high diesel prices really
• 33:13
  Speaker 3: hurt their ability to provide for themselves and their families.
• 33:18
  Speaker 3: Diesel has been increasing dramatically since Trump launched his war
• 33:22
  Speaker 3: with Iran.
• 33:36
  Speaker 7: And then what this does is just adds to it,
• 33:39
  Speaker 7: adds to that expense that we have. Plus, we've had
• 33:42
  Speaker 7: traumatically bad weather this summer. Dry, very hot, and it's
• 33:47
  Speaker 7: really affected our crops. Our yields are down probably 35, 40, 50%.
• 33:54
  Speaker 1: So mostly you got truckers there talking to them and
• 33:57
  Speaker 1: you have a farmer there at the end. And remember
• 33:59
  Speaker 1: that's the national average is $ 6 and 51 cents. I
• 34:02
  Speaker 1: just pulled up California, $ 8 and 42 cents is the
• 34:07
  Speaker 1: average in the state of California. So, um, You know,
• 34:11
  Speaker 1: this flew under the radar for a while because so
• 34:13
  Speaker 1: many Americans, you know, you're thinking about what you're putting
• 34:15
  Speaker 1: in your car, although there are a lot of people
• 34:17
  Speaker 1: who have diesel trucks, too, especially in rural areas. But
• 34:20
  Speaker 1: in any case, you know, this was kind of flying
• 34:22
  Speaker 1: under the radar. Now this has emerged as the top
• 34:26
  Speaker 1: crisis in terms of fuel because the prices are so high.
• 34:29
  Speaker 1: because the refinery capacity is so incredibly stretched. It's being
• 34:33
  Speaker 1: damaged day by day. We covered what's going on with Ukraine,
• 34:36
  Speaker 1: Russia earlier in the show. And because this is really
• 34:39
  Speaker 1: the undersold lifeblood of the economy, whether you're talking about
• 34:42
  Speaker 1: farmers trying to deal with their crops or you're talking
• 34:45
  Speaker 1: about truckers trying to get goods to the store shelves.
• 34:47
  Speaker 3: Yeah.
• 34:48
  Speaker 2: I mean, by the way, at the outbreak of the war,
• 34:50
  Speaker 2: if you're watching this show, we were trying to talk
• 34:52
  Speaker 2: about diesel and we were talking about jet fuel. Do
• 34:54
  Speaker 2: you know what the average guess what the weekly the
• 34:56
  Speaker 2: price today of a barrel of jet fuel. It's $ 200
• 34:59
  Speaker 2: a barrel. It's $ 194 a barrel. It was a huge story, actually,
• 35:04
  Speaker 2: at the outbreak of the war when Singaporean jet fuel
• 35:06
  Speaker 2: was going for $ 200 a barrel. Everyone was like, oh
• 35:09
  Speaker 2: my God, we're going to have all these problems. Well, yeah,
• 35:12
  Speaker 2: this is the problem. We're living the problem. If you
• 35:15
  Speaker 2: look at airfare right now, it is insane. Even if
• 35:18
  Speaker 2: you just want to traverse the East Coast, two and
• 35:21
  Speaker 2: a half hour flight, you're paying $ 700, $ 800 a Like
• 35:24
  Speaker 2: I was telling you, I bought my first cross-country flight
• 35:26
  Speaker 2: since the war began. It is like over $ 1, 000 to
• 35:29
  Speaker 2: take it. Economy, like no premium economy, nothing. Just to
• 35:32
  Speaker 2: be able to sit, you know, and I bought it
• 35:35
  Speaker 2: well advanced to be able to fly across the country.
• 35:37
  Speaker 2: I can't even imagine what this is going to mean
• 35:39
  Speaker 2: for Thanksgiving travel and for Christmas. I mean, there's just,
• 35:43
  Speaker 2: there can't be that, there can't be that many people
• 35:46
  Speaker 2: who are just going to eat the cost. People are
• 35:47
  Speaker 2: either going to drive or if they don't drive, they're
• 35:49
  Speaker 2: just going to stay at home and make different plans,
• 35:51
  Speaker 2: not go on vacations. But what this exposes is the
• 35:55
  Speaker 2: brittle nature of a lot of those industries, trucking and farming.
• 36:00
  Speaker 2: So the farmers actually have been screwed every which way
• 36:03
  Speaker 2: because they have tariffs, fertilizer, and diesel all together.
• 36:08
  Speaker 1: And high interest rate.
• 36:09
  Speaker 2: And high interest rate. And remember, farm economics was already
• 36:13
  Speaker 2: disastrous from day one, even in normal times. They're always
• 36:16
  Speaker 2: going bankrupt and They get all kinds of preferential treatment
• 36:19
  Speaker 2: from the government. So this is with the tariff, with
• 36:22
  Speaker 2: the fertilizer, with the diesel, with the high-interest loan on
• 36:25
  Speaker 2: their John Deere or whatever. All of those together, oh,
• 36:29
  Speaker 2: and I think the corporations who sell them the seeds
• 36:31
  Speaker 2: and all those things are also jacking prices up as well.
• 36:34
  Speaker 2: You put that together, I mean, it's just unsustainable, period,
• 36:36
  Speaker 2: to be able to farm and to be able to
• 36:38
  Speaker 2: produce a crop. Diesel, obviously, what we were warned about
• 36:41
  Speaker 2: from the beginning was just the amount of input inflation
• 36:44
  Speaker 2: that will mean. It's not just your friend who has
• 36:46
  Speaker 2: a truck he doesn't need. if the price is going up.
• 36:49
  Speaker 2: It's all of the groceries on your shelves. All that
• 36:52
  Speaker 2: stuff has to be tracked well across the country. And
• 36:54
  Speaker 2: then jet fuel as well. The biggest problem actually is
• 36:57
  Speaker 2: that it's just going to keep getting worse. There's actually
• 36:59
  Speaker 2: nothing we can do about it except end the war.
• 37:01
  Speaker 3: Yeah.
• 37:02
  Speaker 1: And with the farmers, they rely a lot on credit. Typically,
• 37:05
  Speaker 1: when you're sowing, you're borrowing money to finance all of
• 37:07
  Speaker 1: that and then you pay it off when you're reaping.
• 37:09
  Speaker 1: And So they really have been hit from every angle.
• 37:13
  Speaker 1: We've been covering the politics of that. And Iowa in
• 37:16
  Speaker 1: particular is maybe the state that's been the hardest hit,
• 37:18
  Speaker 1: but any of the big farming states have really been
• 37:20
  Speaker 1: hard hit. So you've got Senator Chuck Grassley with an
• 37:24
  Speaker 1: innovative idea here of what to do. You might think
• 37:26
  Speaker 1: that the obvious answer is why don't you end the war?
• 37:30
  Speaker 1: Then that may not return things instantly to a better situation,
• 37:33
  Speaker 1: but will do the most that you could possibly do
• 37:36
  Speaker 1: to alleviate the immediate pain for farmers and for many
• 37:39
  Speaker 1: other people who are suffering. He's got a different idea.
• 37:41
  Speaker 1: Let's put E2 up on the screen. He says, with
• 37:44
  Speaker 1: diesel at 657 in Iowa, why doesn't President Trump put
• 37:48
  Speaker 1: an embargo on diesel exports like presidents in the 70s
• 37:52
  Speaker 1: put embargoes on ag products because food prices were inflated?
• 37:55
  Speaker 1: High diesel prices are killing farmers' income. And no doubt
• 38:01
  Speaker 1: that high diesel prices are certainly killing farmers' income. And potentially,
• 38:05
  Speaker 1: if you did put an embargo on diesel exports, that
• 38:08
  Speaker 1: could have a positive impact for farmers here. It would
• 38:12
  Speaker 1: be an absolute catastrophic disaster for the entire rest of
• 38:17
  Speaker 1: the world. And so perhaps a better idea would be
• 38:20
  Speaker 1: to get to the root of the problem here and
• 38:22
  Speaker 1: the war so that things can go back to normal.
• 38:24
  Speaker 2: Go to E3 just so we can explain this because
• 38:26
  Speaker 2: you're probably going to. And actually, when the war was
• 38:29
  Speaker 2: still really hot in the early days, this was beginning
• 38:31
  Speaker 2: to bubble up. And it makes sense now that this
• 38:33
  Speaker 2: is all happening again. So as the journal explains, refineries
• 38:37
  Speaker 2: are the main choke point for global energy supply. And actually,
• 38:41
  Speaker 2: I mean, we don't really talk about it enough. I've
• 38:43
  Speaker 2: said it many times here. We have not built a
• 38:45
  Speaker 2: new oil refinery in the United States since the 1970s.
• 38:48
  Speaker 2: We do not have a good amount of refinery capacity.
• 38:51
  Speaker 2: The existing refinery capacity that we have is already running
• 38:53
  Speaker 2: at near like 97, 98%. By the way, we do
• 38:57
  Speaker 2: not talk about how extraordinarily lucky the U.S.
• 38:59
  Speaker 3: Is.
• 38:59
  Speaker 2: Ryan Hall actually just put out a statistic. This is
• 39:02
  Speaker 2: the first September without a hurricane in the Atlantic since 1914.
• 39:06
  Speaker 2: So well over 100 years of no hurricane. So if
• 39:10
  Speaker 2: we had a real hurricane, I think something to do
• 39:13
  Speaker 2: with El Nino, if we had normal hurricane season, this
• 39:16
  Speaker 2: could be much worse. You could have Louisiana or Texas,
• 39:18
  Speaker 2: something like that, go offline even for a week. That
• 39:21
  Speaker 2: alone would be a disaster. The problem right now is
• 39:24
  Speaker 2: that if we banned diesel exports, like what Chuck Grassley
• 39:28
  Speaker 2: is proposing, that would, in the interim, lower diesel prices
• 39:33
  Speaker 2: in the US, but it would break the kind of
• 39:37
  Speaker 2: economic contracts of the way that petroleum markets work around
• 39:40
  Speaker 2: the world, because it's all a global commodity. Right now, ironically,
• 39:44
  Speaker 2: this would be the worst time to do it from
• 39:46
  Speaker 2: a strategic perspective, Because America is the refiner of last resort,
• 39:51
  Speaker 2: specifically for diesel products that are all going to Asia.
• 39:55
  Speaker 2: The vast amount of our exports are going to places
• 39:59
  Speaker 2: which previously got all of their imports from the Middle East.
• 40:02
  Speaker 2: So that's great if you're an oil baron in Texas
• 40:05
  Speaker 2: or a refinery owner. or any of these people. But
• 40:07
  Speaker 2: if we did the ban, it would immediately reduce price here,
• 40:11
  Speaker 2: but overall break the market and actually break things so
• 40:14
  Speaker 2: catastrophically worldwide that it could end the US oil and
• 40:18
  Speaker 2: gas industry as we know it as of today. So
• 40:20
  Speaker 2: it's just like the Houthi situation we began our show with.
• 40:23
  Speaker 2: It's screwed either way. So we either pay a high
• 40:25
  Speaker 2: price and keep the allies afloat, and we're all paying
• 40:28
  Speaker 2: high price, or we play slightly lower and in the
• 40:30
  Speaker 2: long run, much worse, and we screw them now in
• 40:32
  Speaker 2: the interim, or we could just end the war today.
• 40:35
  Speaker 1: You can see, too, this Wall Street Journal piece lays out,
• 40:38
  Speaker 1: not in these terms, but in some of the basic
• 40:41
  Speaker 1: facts here, the way that the just laissez-faire free market
• 40:45
  Speaker 1: system creates fragilities and vulnerabilities. Typically, refining is not a
• 40:49
  Speaker 1: very profitable business. They have a quote in there that's like,
• 40:52
  Speaker 1: you know, how do you make a small fortune? You
• 40:54
  Speaker 1: take a large fortune and then open a refinery. So
• 40:56
  Speaker 1: apparently this is like well-known in the oil and gas business.
• 40:58
  Speaker 2: It's like airlines. You just shouldn't open one.
• 41:00
  Speaker 5: Yeah.
• 41:00
  Speaker 2: It's just a bad idea.
• 41:01
  Speaker 1: So in any case, we were happy to allow a
• 41:04
  Speaker 1: lot of refining capacity to go abroad. And a lot
• 41:06
  Speaker 1: of the places where new refineries were built were, number one, Russia.
• 41:09
  Speaker 1: You can tell me what's going on there. And number two,
• 41:11
  Speaker 1: in the Middle East, you can tell me what's going
• 41:12
  Speaker 1: on there. So as Sagar put it, we are the
• 41:15
  Speaker 1: refinery of last resort. Our facilities are being run at
• 41:19
  Speaker 1: absolute capacity. Some of them are already starting to break down,
• 41:22
  Speaker 1: creating additional strain and additional problems in the market. And
• 41:25
  Speaker 1: so the result of that is we can put E4
• 41:27
  Speaker 1: up on the screen, Financial Times, as they do, with
• 41:30
  Speaker 1: a great breakdown. One of the things that they say
• 41:33
  Speaker 1: in this piece, five ways that Iran energy shock is
• 41:35
  Speaker 1: wrong-footing the world, is they say this is a fuel crisis,
• 41:39
  Speaker 1: or you could say a gas crisis, not an oil crisis.
• 41:42
  Speaker 1: So we've been watching, of course, and we'll continue to
• 41:44
  Speaker 1: do so. What is the price of a barrel of oil?
• 41:46
  Speaker 1: What's it trading for in the commodities market? But the
• 41:50
  Speaker 1: real problem comes in, those prices are already pretty high.
• 41:54
  Speaker 1: But the real problem comes in with, number one, the
• 41:56
  Speaker 1: refining capacity, and number two, the cost of shipping have
• 42:01
  Speaker 1: absolutely skyrocketed. Well, it's a no-brainer.
• 42:03
  Speaker 2: Why?
• 42:03
  Speaker 1: Because you have so many of these shipping lanes that
• 42:06
  Speaker 1: are now either imperiled or completely shut down. So that's
• 42:10
  Speaker 1: why you've seen in the diesel market in particular, diesel
• 42:14
  Speaker 1: prices skyrocketing far and away above the crude oil price.
• 42:19
  Speaker 1: And you can see that gap in the charts that
• 42:21
  Speaker 1: they have in this piece between the Brent crude price
• 42:25
  Speaker 1: And the diesel price, just there's a large gap that
• 42:28
  Speaker 1: continues to open and open and open because of those
• 42:31
  Speaker 1: additional costs of refining and of transporting. We can put
• 42:35
  Speaker 1: the next element up on the screen, E5. Asia-U.S. container
• 42:40
  Speaker 1: rates have soared past $ 11, 000. This is according to freight
• 42:44
  Speaker 1: waves near pandemic records. So we are getting very, very
• 42:48
  Speaker 1: close to record-breaking costs. in order to ship, and we're
• 42:53
  Speaker 1: not just talking about oil here, but we're talking about
• 42:54
  Speaker 1: all kinds of goods, with container rates surging past $ 11, 000.
• 42:59
  Speaker 1: And this is something that Sal had flagged for us
• 43:01
  Speaker 1: last time we spoke with him as well.
• 43:03
  Speaker 2: You know, this is why it's so important. That Financial
• 43:06
  Speaker 2: Times story, I really recommend people read it because it
• 43:08
  Speaker 2: breaks it down in such an easy-to-understand way. The first,
• 43:13
  Speaker 2: most interesting thing, actually, was that immediately people were too
• 43:17
  Speaker 2: pessimistic around energy. They thought that consumption would drop. But actually,
• 43:22
  Speaker 2: the rest of the world, obviously, they haven't reached their
• 43:24
  Speaker 2: breaking point, if you will, in terms of operation. They
• 43:27
  Speaker 2: still want to keep things going. So they need to
• 43:29
  Speaker 2: continue to buy oil. So they basically underestimated how much
• 43:34
  Speaker 2: more demand that there would still be. There hasn't been
• 43:36
  Speaker 2: the amount of demand destruction, even at the current prices
• 43:38
  Speaker 2: that we have. So people are still buying, which means
• 43:40
  Speaker 2: it's going to send the price up. here in the US.
• 43:42
  Speaker 2: The fuel crisis point is the absolute key. Doesn't matter
• 43:45
  Speaker 2: how much crude you got if you can't refiner it.
• 43:46
  Speaker 2: Because nobody here cares about what the price of a
• 43:48
  Speaker 2: barrel of oil is. We care about the gas, diesel,
• 43:51
  Speaker 2: jet fuel. That's the only thing that matters. We're at 100%,
• 43:53
  Speaker 2: which means the price is still gonna continue to go high.
• 43:56
  Speaker 2: They also specifically talk about how, Yanis brought this up
• 44:00
  Speaker 2: as well, about these energy shocks that are sweeping through
• 44:04
  Speaker 2: the rest of the poorer countries. We kind of forgot
• 44:06
  Speaker 2: about it over the last five or six months. The
• 44:09
  Speaker 2: famines and things haven't really happened. However, the shortages are
• 44:12
  Speaker 2: still killing them in terms of the price overall increase,
• 44:17
  Speaker 2: the outright shortages, Africa and the rest of the world.
• 44:20
  Speaker 2: Many of these places just straight up have given up
• 44:22
  Speaker 2: or they're shifting towards these much filthier uses of energy,
• 44:26
  Speaker 2: things like straight up just wood burning, which obviously is
• 44:29
  Speaker 2: terrible for the environment and also terrible for the people
• 44:31
  Speaker 2: in their homes. They also have seen significant decrease. Those
• 44:35
  Speaker 2: places actually have had demand destruction. But the final thing
• 44:38
  Speaker 2: is about the oil prices. where they really finally just admit.
• 44:42
  Speaker 2: And I loved this more recent JP Morgan assessment, which
• 44:46
  Speaker 2: was going around. And they just said, for the first time,
• 44:49
  Speaker 2: we have no idea what's going to happen. They're like,
• 44:51
  Speaker 2: we have no idea. And we're just going to tell
• 44:54
  Speaker 2: our investors and people who look to us, we don't know.
• 44:57
  Speaker 1: Like, good luck. Yeah.
• 44:58
  Speaker 2: And we're like, good luck to the rest of you
• 45:00
  Speaker 2: guys in the energy markets who are for the first.
• 45:02
  Speaker 2: And that's kind of why the prices are where they
• 45:04
  Speaker 2: are is there's no fantasy MOU anymore. There's no peace.
• 45:08
  Speaker 2: There's no meeting. I mean, I'm sure I'd be willing
• 45:12
  Speaker 2: to bet Trump might meet with the Iranian president just
• 45:14
  Speaker 2: to try and temporarily send the price of oil down.
• 45:17
  Speaker 1: Who's going to be in town for the U.N. General Assembly.
• 45:19
  Speaker 2: So he might do that. And that'll give us a
• 45:22
  Speaker 2: few days, but. You know, you can't make up refinery capacity.
• 45:25
  Speaker 2: This is what it is.
• 45:26
  Speaker 1: You're starting to see these little breakages in the market.
• 45:28
  Speaker 1: Put E6 up on the screen. So Costco is now
• 45:31
  Speaker 1: rationing motor oil. You can only buy so much when
• 45:35
  Speaker 1: you go into the store. They say that this crisis
• 45:39
  Speaker 1: and shortage is becoming more acute, according to the Financial Times,
• 45:42
  Speaker 1: with prices of the car engine lubricant reaching new highs.
• 45:46
  Speaker 1: Oil chain shops running dry.
• 45:47
  Speaker 2: A U.S.
• 45:48
  Speaker 1: Retail group, that would be Costco, rationing sales to do-it-yourself customers.
• 45:52
  Speaker 1: They say that at Costco, not only they ration the
• 45:55
  Speaker 1: amount you're allowed to buy, but they raise the price
• 45:58
  Speaker 1: for 10 quarts of one type of full synthetic motor
• 46:00
  Speaker 1: oil to $ 57. 99, and you can only buy one of
• 46:02
  Speaker 1: these cases. Previously, this.
• 46:07
  Speaker 1: Same brand was selling for about $ 30. So the price
• 46:11
  Speaker 1: year over year has basically doubled. Meanwhile, over at Walmart,
• 46:16
  Speaker 1: they're reporting low stocks for several brands. According to the
• 46:22
  Speaker 1: chief executive of Jiffy Lube, they say there will be
• 46:25
  Speaker 1: some spot outages that we just have to deal with.
• 46:29
  Speaker 1: And so, again, you're starting to see these little breakages
• 46:32
  Speaker 1: we showed you last year, last week, rather, the picture,
• 46:35
  Speaker 1: what is time even really? Last week, we showed you
• 46:37
  Speaker 1: the pictures of a few gas stations that are just
• 46:40
  Speaker 1: completely out of diesel. We've seen in California, the price
• 46:44
  Speaker 1: is getting to the max of what can even be
• 46:47
  Speaker 1: advertised on the signs. So even here in a relatively
• 46:51
  Speaker 1: wealthy country that obviously has a lot of our own
• 46:54
  Speaker 1: oil and gas capacity and a significant amount of refining capacity,
• 46:57
  Speaker 1: we're still starting to see some of these cracks to emerge.
• 47:01
  Speaker 2: And I do fear that we'll do the ban. It's
• 47:03
  Speaker 2: exactly the type of dumb thing that Trump would do.
• 47:06
  Speaker 2: And if that happens, it's actually just over for the U.S.
• 47:10
  Speaker 2: alliances in Asia. Like, it probably already is, but can
• 47:13
  Speaker 2: you imagine? I mean, that's the vast majority of our exports.
• 47:16
  Speaker 2: That's where it's all going. Japan, South Korea. If we
• 47:19
  Speaker 2: leave them dry, I mean, they straight up won't be
• 47:20
  Speaker 2: able to drive, like period.
• 47:22
  Speaker 1: I could see him doing it as a pre-midterm move.
• 47:24
  Speaker 1: I think it will be popular initially with the public because.
• 47:27
  Speaker 2: In the short term it will help. They're like, what
• 47:29
  Speaker 2: do I care about Japan? I'm like, well, you're going
• 47:31
  Speaker 2: to find out. It's like, I think they'll find out.
• 47:33
  Speaker 2: And I think he's going to do it, especially because
• 47:36
  Speaker 2: none of these people have the courage to call for
• 47:38
  Speaker 2: an end to the war. You have Tim Burchett, Chuck Grassley,
• 47:40
  Speaker 2: all kinds of these representatives who are just grasping for
• 47:43
  Speaker 2: this short-term thing. It's exactly the type of stupid thing
• 47:45
  Speaker 2: like Liberation Day. which you could see something getting in
• 47:48
  Speaker 2: his head. And that's it. Like if once those tankers
• 47:51
  Speaker 2: stop going and they can't buy from us anymore and
• 47:53
  Speaker 2: we actually just leave them literally high and dry in
• 47:56
  Speaker 2: the middle of going into winter, I can't imagine.
• 47:59
  Speaker 1: And it will be truly catastrophic for the world. I mean,
• 48:02
  Speaker 1: it really, really will be a disaster for much of
• 48:05
  Speaker 1: the world who are already, you know, really stretched thin.
• 48:08
  Speaker 3: Right.
• 48:08
  Speaker 2: Speaking of a disaster, Ed Sheeran.
• 48:14
  Speaker 1: Had a little update for you that we just couldn't
• 48:16
  Speaker 1: simply resist of Ed Sheeran. I'm sure you guys all
• 48:19
  Speaker 1: know the backstory at this point. Macklemore was an opening
• 48:21
  Speaker 1: act on Ed Sheeran's tour. He had the audacity to
• 48:25
  Speaker 1: say free Palestine and call Israel's genocide in Gaza what
• 48:29
  Speaker 1: it is, a genocide. This led to a huge freakout. First,
• 48:32
  Speaker 1: Pink was upset. Then we got the billionaires involved. Robert
• 48:35
  Speaker 1: Kraft calls up his friends who are also stadium owners, says, hey,
• 48:38
  Speaker 1: we're not going to host your tour if you keep
• 48:40
  Speaker 1: this guy on. Ed Sheeran buckles to the pressure. Macklemore
• 48:44
  Speaker 1: gets kicked off the tour. This led to a tremendous backlash.
• 48:48
  Speaker 1: All of the other opening acts. for Ed Sheeran, they
• 48:51
  Speaker 1: all pulled out. Even his own backup band also pulled out. Apparently,
• 48:56
  Speaker 1: ticket sales plummeted. They were offering them at a tremendous discount.
• 49:00
  Speaker 1: So in any case, in the next show that Ed
• 49:02
  Speaker 1: Sheeran performed at, he gave this scripted, off-the-teleprompter, tearful apology
• 49:09
  Speaker 1: of sorts. Let's go ahead and take a listen to that.
• 49:11
  Speaker 5: I want to address the question of where I stand
• 49:14
  Speaker 5: in the situation in Israel and Palestine, and whether my
• 49:17
  Speaker 5: doing this concert here tonight implies where I stand. I
• 49:21
  Speaker 5: have tried in my career not to be a political
• 49:23
  Speaker 5: commentator of any kind because I want my music and
• 49:26
  Speaker 5: shows to be about unity, not division, about humanity, not politics.
• 49:35
  Speaker 2: But this is a humanitarian issue.
• 49:38
  Speaker 5: And I can't hide how I feel about it anymore.
• 49:41
  Speaker 5: What happened in Israel and at the No Music Festival
• 49:44
  Speaker 5: on October 7th was horrific and compounded centuries of Jewish pain.
• 49:49
  Speaker 2: What is happening in.
• 49:51
  Speaker 5: Gaza is catastrophic and unjustifiable and disproportionate. My heart has
• 49:57
  Speaker 5: been broken by the scale of the devastation and loss
• 50:00
  Speaker 5: of civilians' lives, children's lives.
• 50:05
  Speaker 6: And the systemic injustice we're seeing unfold in the West
• 50:07
  Speaker 6: Bank cannot be overlooked. I am already speaking to people
• 50:11
  Speaker 6: across the spectrum to work out how to make a
• 50:14
  Speaker 6: contribution that helps victims of these terrible times. I'm listening
• 50:18
  Speaker 6: and learning because I do not know enough.
• 50:22
  Speaker 5: I honestly am so grateful that you are here to
• 50:24
  Speaker 5: start with me. This concert is still in place but
• 50:37
  Speaker 5: everyone is welcome and everyone here can stand beside people.
• 50:41
  Speaker 2: That have opposing views and everyone.
• 50:43
  Speaker 5: Here can stand by people that they don't agree with
• 50:45
  Speaker 5: on everything but.
• 50:47
  Speaker 2: They can all agree on singing these songs.
• 50:52
  Speaker 1: Lots to say about that. I mean, first, obviously, the,
• 50:55
  Speaker 1: you know, world equivalence, the framing it as like a
• 50:59
  Speaker 1: conflict saying that, oh, I don't want to talk about politics,
• 51:02
  Speaker 1: even though previously visited Ukraine, weighed in very heavily in
• 51:04
  Speaker 1: the Ukrainian conflict. And then I think just to the core,
• 51:07
  Speaker 1: the reason why people are so disgusted here is it
• 51:10
  Speaker 1: feels like a very PR workshopped.
• 51:13
  Speaker 3: Yes.
• 51:14
  Speaker 1: And literally scripted reading off a teleprompter addressing of the situation,
• 51:18
  Speaker 1: can't even call it an apology. And then the other
• 51:21
  Speaker 1: thing is when he gets choked up, is it about
• 51:23
  Speaker 1: the fact that Gaza has been completely destroyed and turned
• 51:27
  Speaker 1: to rubble? Is it about the fact that you now
• 51:29
  Speaker 1: have the largest population of child amputees on the planet?
• 51:32
  Speaker 1: Is it about the fact that Israel continues to bomb
• 51:35
  Speaker 1: and siege the Gaza Strip? No, it's about himself. And
• 51:39
  Speaker 1: that's the thing is he really turns himself Into the
• 51:43
  Speaker 1: victim of the whole situation, which is just utterly disgusting.
• 51:46
  Speaker 1: He gets emotional when the crowd is like supporting him.
• 51:49
  Speaker 1: And so I think that's the part that people are
• 51:52
  Speaker 1: really disgusted by is that he's turned himself into like, oh,
• 51:57
  Speaker 1: poor me. Woe is me. Number one, if you don't
• 52:00
  Speaker 1: want to deal with any of that, I don't know
• 52:01
  Speaker 1: why you had Macklemore on the tour to start with.
• 52:03
  Speaker 2: Who sings the song?
• 52:04
  Speaker 1: Who, yeah, has a song, Hins Hall, like has been
• 52:08
  Speaker 1: very outspoken, not only about this, but on any number
• 52:11
  Speaker 1: of other political issues as well. Then you try to
• 52:15
  Speaker 1: say it wasn't your fault that he got pulled from
• 52:17
  Speaker 1: the tour. Please, you're Ed Sheeran. In this whole situation,
• 52:20
  Speaker 1: you are the guy that has the power. If you
• 52:22
  Speaker 1: came out and said to Robert Kraft, OK, fine, we
• 52:25
  Speaker 1: won't play at your stadium. We'll find another venue, like
• 52:27
  Speaker 1: take your smear campaign and your mafia boss tactics somewhere else.
• 52:31
  Speaker 1: Do you know what an incredible hero he would be?
• 52:33
  Speaker 1: So it's just it's just disgusting. And obviously the attack
• 52:37
  Speaker 1: on free speech of Macklemore saying something that should be
• 52:40
  Speaker 1: so inoffensive at this point. Free Palestine is incredible and disturbing.
• 52:44
  Speaker 2: What bothers me as I look, it's it's not even
• 52:47
  Speaker 2: like this statement. It's you are worth three hundred million dollars,
• 52:52
  Speaker 2: maybe four hundred, depending on where the British pound is today.
• 52:55
  Speaker 2: You don't have the ability to say this is my act.
• 52:59
  Speaker 2: These are my bans. Nobody tells me where to play
• 53:01
  Speaker 2: or what to do. Period. End of story.
• 53:04
  Speaker 1: Yeah. Just say that.
• 53:05
  Speaker 2: I mean, it's genuinely not even about Palestine at this point.
• 53:08
  Speaker 2: It's like, this is about your own integrity. So, like,
• 53:10
  Speaker 2: what are you getting choked up for? It's like, you're
• 53:13
  Speaker 2: actually a bitch, dude, because you made yourself the slave
• 53:15
  Speaker 2: of Robert Kraft and all these other people who get
• 53:18
  Speaker 2: to tell you what to do.
• 53:19
  Speaker 1: Like, he and Macklemore are apparently boys.
• 53:22
  Speaker 2: Allegedly.
• 53:22
  Speaker 1: I mean, I don't know. Or they were anyway.
• 53:24
  Speaker 2: After this. It's like, dude, what are you doing? And then,
• 53:27
  Speaker 2: you know, you get humiliated by not only Macklemore, but
• 53:30
  Speaker 2: your entire... Your band, your backup band, your opening acts,
• 53:34
  Speaker 2: and all of these people were like, hey, how is
• 53:36
  Speaker 2: it that these no-name band guys have more ability? Again,
• 53:41
  Speaker 2: for them, a lot of them, it wasn't even by Palestine,
• 53:43
  Speaker 2: or at least some of them. They said, look, nobody
• 53:45
  Speaker 2: tells us what to do, period.
• 53:46
  Speaker 1: And that's such a great point. Think of his backup band, right?
• 53:49
  Speaker 1: This is like the gig of a lifetime. 100% is huge.
• 53:51
  Speaker 1: To be on tour with Ed Sheeran, who's one of
• 53:54
  Speaker 1: the biggest pop stars on the entire planet. And they're
• 53:57
  Speaker 1: willing to walk away from it out of principle. And you, Mr.
• 54:01
  Speaker 1: 100 multi, multi, multi, multimillionaire who has more money than
• 54:04
  Speaker 1: he could ever spend an entire lifetime, you can't stand
• 54:07
  Speaker 1: up for the basic, even if you don't care about Palestine,
• 54:10
  Speaker 1: for the basic principle of this is my friend. He's
• 54:13
  Speaker 1: allowed to say what he's going to say. I'm not
• 54:14
  Speaker 1: going to be bullied by a bunch of billionaires. That's pathetic.
• 54:17
  Speaker 1: It's just pathetic.
• 54:18
  Speaker 2: I was thinking about this. We have no shame in
• 54:20
  Speaker 2: this country anymore, especially at our cultural elite level. Like
• 54:25
  Speaker 2: the Sidney Sweeney thing, I talked about that. But LeBron.
• 54:27
  Speaker 2: So I recently found out the price. Guess what? LeBron.
• 54:30
  Speaker 2: For him to be shilling every week for Polymarket. It's
• 54:34
  Speaker 2: $ 15 million a year. He's a billionaire. You could make that.
• 54:37
  Speaker 2: He could make more on an annualized basis by just
• 54:40
  Speaker 2: putting his money in the S & P 500. You know,
• 54:43
  Speaker 2: it's like, what the fuck are you doing?
• 54:45
  Speaker 1: He literally will not even notice that amount of money.
• 54:48
  Speaker 1: That's how rich the man is.
• 54:50
  Speaker 2: Like, it is a rounding error on his entire net worth.
• 54:54
  Speaker 2: Why do it then? $ 15 million a year?
• 54:56
  Speaker 1: It's nothing.
• 54:57
  Speaker 2: Like, it's genuinely nothing. And that is how greedy he is.
• 55:03
  Speaker 2: By the cash, not even equity in the company. He's
• 55:05
  Speaker 2: taking cash to encourage you to lose your cash.
• 55:08
  Speaker 1: It's sick.
• 55:08
  Speaker 2: Sydney, I mean, I guess she got equity in the company,
• 55:12
  Speaker 2: but it's like, come on, like you're like, you know,
• 55:14
  Speaker 2: basically shooting soft core pornography to get these dudes who
• 55:17
  Speaker 2: are all addicted. And then the funniest thing is, is
• 55:20
  Speaker 2: the backlash in the women in sports industry. on the
• 55:22
  Speaker 2: New York Times op-ed is they're like, oh, she's using
• 55:24
  Speaker 2: her body to, you know, like she's diminishing women's sports.
• 55:28
  Speaker 2: I'm like, how about she's shilling for a disgusting industry?
• 55:31
  Speaker 2: Like nobody, there was none of that even in our discourse.
• 55:34
  Speaker 1: I didn't really understand that.
• 55:35
  Speaker 2: Did you check that?
• 55:36
  Speaker 1: Yeah, I was a former female athlete. I wasn't really
• 55:38
  Speaker 1: the part of it that offended me.
• 55:39
  Speaker 2: Yeah, I'm like, oh, like that's not, guys, that's not
• 55:42
  Speaker 2: the offensive part. The offensive part is that she's shilling
• 55:44
  Speaker 2: for a disgusting industry. We don't even have the language
• 55:48
  Speaker 2: in our culture anymore. anymore to be like, you are
• 55:51
  Speaker 2: a disgusting person. LeBron, you are a disgusting person. Sidney Sweeney,
• 55:55
  Speaker 2: you are a disgusting person. You are encouraging people to
• 55:58
  Speaker 2: piss their money away for straight cash.
• 56:01
  Speaker 1: And not just people like your fan.
• 56:03
  Speaker 7: I know.
• 56:03
  Speaker 1: The people who trust you the most. You know, it's
• 56:06
  Speaker 1: not an accident that Sidney Sweeney gets chosen. She's got
• 56:08
  Speaker 1: like this, you know, fan base of young men who
• 56:11
  Speaker 1: are in love with her. And so she shows up
• 56:13
  Speaker 1: like naked. Hey, use this betting app. You might think
• 56:16
  Speaker 1: it's ridiculous, but that actually will encourage a lot of
• 56:19
  Speaker 1: young men to go and use that betting app. And
• 56:21
  Speaker 1: with LeBron, like LeBron is lionized, understandably so. He truly
• 56:26
  Speaker 1: is one of the greatest athletes of all time, not
• 56:28
  Speaker 1: just in terms of basketball. And as someone who's in
• 56:30
  Speaker 1: my 40s watching him do what he is doing at
• 56:33
  Speaker 1: his age, it's incredible. My son, 13 years old, like
• 56:36
  Speaker 1: really looks up to LeBron. And then you're going to
• 56:38
  Speaker 1: go out there and glorify and make it like cool.
• 56:42
  Speaker 1: To throw your money away to these predatory companies for, again,
• 56:46
  Speaker 1: the sort of most diehard, dedicated and vulnerable part of
• 56:50
  Speaker 1: your own fan base. That is so disturbing to me.
• 56:54
  Speaker 1: And again, like for us, we have made a conscious
• 56:57
  Speaker 1: decision not to do any ad reads on this show
• 57:00
  Speaker 1: because I would never want to vouch for a product
• 57:02
  Speaker 1: that there was even a 1% chance.
• 57:03
  Speaker 4: I know.
• 57:05
  Speaker 1: That it would be bad for someone and wouldn't work
• 57:08
  Speaker 1: properly or would lead them in the wrong direction. I
• 57:10
  Speaker 1: wouldn't want to deal with any of that. I wouldn't
• 57:12
  Speaker 1: want any of that on my conscience. And yet LeBron James,
• 57:15
  Speaker 1: who's a literal billionaire, is just happy to sell out,
• 57:19
  Speaker 1: for him, what's a low price, all of his fan base.
• 57:21
  Speaker 1: It's really disgusting.
• 57:22
  Speaker 2: No, I mean, literally, it could retire if we just
• 57:25
  Speaker 2: read ads. Even for companies that were inoffensive, like Fortune
• 57:28
  Speaker 2: 500 companies, they could literally never have to work again.
• 57:30
  Speaker 2: And it's like, oh, and LeBron's out here literally making
• 57:32
  Speaker 2: a billion dollars. And apparently this is, you know, it's
• 57:36
  Speaker 2: like it's in the realm of discussion. Gronkowski, that's another one.
• 57:39
  Speaker 2: He gets no smoke. Literally one of the most legendary
• 57:42
  Speaker 2: football players of all time. Icon in New England. He's
• 57:45
  Speaker 2: a FanDuel brand ambassador. Literally every commercial you watch is
• 57:49
  Speaker 2: Rob Gronkowski shilling for FanDuel on his Twitter page. New customers.
• 57:53
  Speaker 2: You bring $ 1 a day times five. FanDuel is going
• 57:55
  Speaker 2: to bring you $ 1. $ 100 bonus. No shame. Literally zero.
• 58:00
  Speaker 2: Kevin Hart, LeBron, all of these celebrities and all these people,
• 58:04
  Speaker 2: they come out and they show up for these. Eli Manning,
• 58:07
  Speaker 2: we talked about Spike Lee. I mean, Spike, who made the,
• 58:11
  Speaker 2: I said this, he made the Malcolm X movie. He's
• 58:14
  Speaker 2: supposed to be The champion of like working class New Yorker,
• 58:18
  Speaker 2: the Knicks guy who's always there. You know, the other
• 58:21
  Speaker 2: Knicks fan who is the legend, Chalamet, who goes something.
• 58:25
  Speaker 2: He's in the Cousy commercial, right? It's like there's nothing
• 58:28
  Speaker 2: that is like in a cultural check to stop any
• 58:31
  Speaker 2: of these people from cashing these checks. It's just disgusting.
• 58:34
  Speaker 2: Bring back shame. Yeah, we have none. Bring back social shame.
• 58:38
  Speaker 1: Bring back standards.
• 58:39
  Speaker 2: It's true. It's true. And whatever. You know, it really
• 58:44
  Speaker 2: it sickens me because these people, like it or not,
• 58:47
  Speaker 2: in our culture, these are the people who people look
• 58:50
  Speaker 2: up to. It's, you know, people.
• 58:51
  Speaker 1: Remember when Kim Kardashian was selling some crypto?
• 58:53
  Speaker 2: Yeah. And, you know, she got fined by the government
• 58:55
  Speaker 2: and actually got shamed by it.
• 58:56
  Speaker 3: Yeah.
• 58:56
  Speaker 2: That was a good thing.
• 58:57
  Speaker 1: Yeah.
• 58:57
  Speaker 2: But now we have none of that left in our society.
• 59:01
  Speaker 2: All right. AMA Live Time. We're going to get to that.
• 59:03
  Speaker 2: We'll see you later.