Latest / Breaking Points with Krystal and Saagar / 5/19/26: Trump $1.8 Billion Slush Fund For Allies, Students Boo AI At Graduation, Kars4Kids Scandal Erupts

Transcript

5/19/26: Trump $1.8 Billion Slush Fund For Allies, Students Boo AI At Graduation, Kars4Kids Scandal Erupts · Breaking Points with Krystal and Saagar

0:00
Speaker 1: Hey, guys, Saga and Crystal here.
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Speaker 1: news media and we hope to see you at Breakingpoints
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Speaker 1: dot com. Turning now to the slush fund. This one's
0:35
Speaker 1: getting a lot of attention. Let's put it up here
0:37
Speaker 1: on the screen now. The details are a little convoluted,
0:40
Speaker 1: so everybody stick with me. Donald Trump has basically been
0:43
Speaker 1: in a decade long fight with the IRS. Yesterday he
0:47
Speaker 1: decided to drop this ten billion dollar lawsuit against the
0:52
Speaker 1: IRS over the leak of his tax returns. In exchange,
0:56
Speaker 1: a part of that settlement will create something called an
0:59
Speaker 1: anti weaponization fund of one point seven seven six billion
1:04
Speaker 1: dollars seventeen seventy six to celebrate the founding of the
1:08
Speaker 1: American Revolution. Now that Anti Weaponization Fund will allow people
1:12
Speaker 1: who believe they were targeted for prosecution for political purposes,
1:16
Speaker 1: including by the Biden administration, to apply for payouts, creating
1:21
Speaker 1: a quote lawful process for victims of lawfare and weaponization
1:26
Speaker 1: to be heard and to seek redress the machinery of government.
1:29
Speaker 1: They says should not be weaponized against any American. It
1:32
Speaker 1: is this Department's intention to make this right the wrongs
1:35
Speaker 1: that were previously done while ensuring this never happens again. Now,
1:39
Speaker 1: there are a lot of very interesting things about this
1:42
Speaker 1: slush fund, if you will. It literally creates a fund
1:46
Speaker 1: of taxpayer dollars. These taxpayer dollars can be dispersed at
1:50
Speaker 1: the explicit basically at the explicit, at the explicit instruction
1:55
Speaker 1: of the Department of Justice, based upon their own review
1:59
Speaker 1: every preview compensation fund that has ever been set up
2:02
Speaker 1: by the United States, and I actually went back and checked,
2:05
Speaker 1: or at the very least, similar types of funds like
2:07
Speaker 1: this are created by Congress, so for example, the nine
2:11
Speaker 1: to eleven Victims Compensation Fund, or you know, there's a
2:13
Speaker 1: lot of different ways and mechanisms that you can create this.
2:16
Speaker 1: There are also lawsuits. There's a different process where let's
2:19
Speaker 1: say you or I were improperly treated by the Feds,
2:22
Speaker 1: we can sue the federal government, and then a judge
2:25
Speaker 1: and others will decide potentially in some sort of a
2:27
Speaker 1: settlement between those two. This preemptively creates the fund, inviting
2:32
Speaker 1: the so called victims, at the discretion of the Department
2:36
Speaker 1: of Justice to be able to release them. And look,
2:39
Speaker 1: we all know at this point, like this is going
2:41
Speaker 1: to be created for the benefit of the people who
2:44
Speaker 1: are on Donald Trump's side either not just from January sixth,
2:47
Speaker 1: but a lot of his other allies who have faced
2:50
Speaker 1: either political prosecution by the previous administration or even prior
2:55
Speaker 1: to that by Robert Muller and others. So this is
2:58
Speaker 1: crazier than honestly anything he's ever done. And I know
3:01
Speaker 1: that may sound crazy because they're like, oh, but what
3:04
Speaker 1: about the trading and palent heer. I'm like, look, all
3:07
Speaker 1: of that is fair, absolutely fair, But there's a plausible explanation.
3:11
Speaker 1: It is a very or even government contracts, technically a
3:15
Speaker 1: service is being provided, right, this is literally just cutting
3:18
Speaker 1: checks out from the US Treasury, and like United States
3:22
Speaker 1: of America.
3:23
Speaker 3: Yeah, taxpayer expense.
3:24
Speaker 1: It's a very different.
3:25
Speaker 2: Thing the insider trading potential that we talked about yesterday,
3:30
Speaker 2: which is insane that you have one hundreds of millions
3:33
Speaker 2: of dollars you know, that's not coming directly out of
3:36
Speaker 2: the taxpayer's pocket. It's incredibly destructive to the social fabric.
3:41
Speaker 2: It's illegal if it was in fact insider trading as
3:44
Speaker 2: it appears on its face. But here we're talking about
3:48
Speaker 2: direct theft of one point eight billion dollars of taxpayer
3:50
Speaker 2: money to dole out to your friends and allies as
3:53
Speaker 2: you see fit. It's crazy. And I mean one one
3:57
Speaker 2: minor correction on what you said though. This lass of
3:59
Speaker 2: doesn't go back decades. This was something they filed last
4:02
Speaker 2: year against.
4:03
Speaker 1: High r so he has two different lawsuits.
4:05
Speaker 2: So this one, this was filed just actually sorry, not
4:08
Speaker 2: even last year, earlier this year based on this, you know,
4:12
Speaker 2: previous leak of his tax returns.
4:14
Speaker 3: So just think about that.
4:15
Speaker 2: To begin with the President of the United States issuing
4:18
Speaker 2: his own government expecting the taxpayers to pay out some
4:22
Speaker 2: sort of settlement to him for his alleged wrong that
4:25
Speaker 2: was crazy to begin with. Now there's a reason why
4:28
Speaker 2: they never let this thing go to court, because very
4:30
Speaker 2: likely a judge was going to look at this and throw.
4:32
Speaker 3: It right out.
4:33
Speaker 2: So instead of going to court, now he has created
4:36
Speaker 2: this quote unquote settlement, again with his own government, which
4:40
Speaker 2: he runs as his personal kingdom, obviously, to create this
4:44
Speaker 2: one point eight billion dollar fund to dole out as
4:48
Speaker 2: he sees fit. Now what sort of incentive does this create?
4:52
Speaker 2: Right for the people who storm the Capitol on January sixth,
4:56
Speaker 2: some of whom just quote unquote trespassed and some of
4:58
Speaker 2: whom will create, you know, committed violent acts, all of
5:01
Speaker 2: whom had their sentences community and were pardoned by the Trump.
5:06
Speaker 2: Now they have been rewarded for that activity. And that's
5:11
Speaker 2: the message that comes out from this is first of all,
5:13
Speaker 2: that he uses the federal government's own personal piggy bank
5:16
Speaker 2: to reward his friends and allies. And second of all,
5:19
Speaker 2: not only will there be no legal consequences for you
5:22
Speaker 2: breaking the law beating up police officers in service of
5:25
Speaker 2: President Trump, You're going to be financially rewarded for it.
5:29
Speaker 2: Think about the financial the incentives that that creates. It's
5:33
Speaker 2: truly truly mind blowing. And let's also talk about Okay,
5:36
Speaker 2: so who are some of the people who could get
5:38
Speaker 2: these bands. It's really anyone he feels like put C
5:40
Speaker 2: three up on the screen. This is Ron Philip Gowski
5:43
Speaker 2: put together this list. You think about Steve Bannon, Peter Navara,
5:46
Speaker 2: Rudy Giuliani, Mark Meadows, Stuart Rhodes, Enrique Tarrio, Sidney pal
5:50
Speaker 2: Jenna Ellis, John Eastman.
5:52
Speaker 3: These were key.
5:53
Speaker 2: Figures in Stop the Steel, Jeffrey Clark and another one
5:55
Speaker 2: Boris Epstein, Joe Biggs, I don't remember who that is.
5:58
Speaker 3: And Walton Nauta.
5:59
Speaker 2: But any of the January sixth people, we could put
6:02
Speaker 2: C four up on the screen just as a reminder
6:04
Speaker 2: of the personal character of some of these pardoned insurrectionists.
6:09
Speaker 2: At least thirty three of them have faced other criminal charges.
6:13
Speaker 2: A number of them have been charged with driving under
6:17
Speaker 2: the influence, and in four cases they allegedly reoffended after
6:22
Speaker 2: receiving their pardons from Trump. One was charged with a
6:25
Speaker 2: felony for threatening to murder Came Jeffreys. Another was convicted
6:28
Speaker 2: in June for violating peace order by following the mother
6:30
Speaker 2: of his child in violation of a court order. Two
6:33
Speaker 2: were charged in May with burglary, breaking and entering others
6:37
Speaker 2: had interactions with law enforcement that highlight the dangers posed
6:40
Speaker 2: by Trump's decision to greet them clemency. One was killed
6:43
Speaker 2: during a traffic stop when he reportedly resisted arrest and
6:45
Speaker 2: was armed. Another fired on police when they arrested him,
6:50
Speaker 2: and I believe there were yes. Six of the pardon
6:53
Speaker 2: January sixth insurrectionists were charged with committing child sex crimes,
6:57
Speaker 2: ranging from sexual assault to possession of child pornograa. At
7:00
Speaker 2: least five were charged with the legal possession of weapons,
7:02
Speaker 2: including at least two who had a previous domestic violence conviction.
7:05
Speaker 3: These are the sorts of characters.
7:07
Speaker 2: That Trump already pardoned and who would now be eligible
7:11
Speaker 2: for a financial reward for their actions on that day.
7:15
Speaker 2: So it is so disgusting and depraved and deleterious to
7:19
Speaker 2: the fabric of a society that you can scarcely wrap
7:21
Speaker 2: your hyder.
7:22
Speaker 1: I would say that it's very simple to do, because look,
7:25
Speaker 1: a lot of Republicans and all those they're upset about
7:27
Speaker 1: the way that some of the Jan sixers were treated.
7:29
Speaker 1: I think it's fair. I mean, a lot of the
7:31
Speaker 1: prosecutions were extremely over zealous, and some of the things
7:34
Speaker 1: that they did or the QAnon guy, what he was
7:36
Speaker 1: hit with some ridiculous number of the shaman you know,
7:39
Speaker 1: was hit with some ridiculous number of time. That's honestly
7:41
Speaker 1: a completely different argument outside of pardoning, and even in
7:45
Speaker 1: terms of their ability, let's say, if they need to
7:47
Speaker 1: seek redress, which they easily could, you know, through the
7:50
Speaker 1: legal system, it's a totally different one to create some
7:53
Speaker 1: sort of a slush fund. And honestly, it, you know,
7:56
Speaker 1: amplifies a lot of the same stuff that they get
7:58
Speaker 1: furious about whenever we're talking about fraud or checks that
8:01
Speaker 1: are getting cut out, you know, from the government. And look,
8:04
Speaker 1: I mean, let's not deny like this is a long
8:06
Speaker 1: held thing that a lot of government, a lot of
8:09
Speaker 1: people have wanted to do in the past for like
8:11
Speaker 1: sympathetic victims. But here they're just like, oh, yeah, we're
8:14
Speaker 1: going to do it right, Like, we're just going to
8:16
Speaker 1: create this fund for people we believe have been unjustly prosecuted.
8:20
Speaker 1: And it's like, okay, I mean, in the in terms
8:22
Speaker 1: of like a lot of these jan six people who
8:24
Speaker 1: were parted, I honestly don't even disagree with a lot
8:27
Speaker 1: of the pardons considering how far they went and especially
8:29
Speaker 1: considering how a lot of people who rioted in twenty
8:31
Speaker 1: twenty were not prosecuted liarly whatsoever. However, to cut them
8:36
Speaker 1: checks from the FEDS. And then is what is going
8:38
Speaker 1: to stop you know, some future democratic administration from saying
8:42
Speaker 1: the same, but from compensating James Comy, you know, for
8:44
Speaker 1: being prosecuted now for this eight six four to seven.
8:47
Speaker 1: That's why we don't have things like this, and it
8:49
Speaker 1: should be set up by Congress. I mean, I'm sure
8:51
Speaker 1: it will face an immense amount of legal scrutiny on
8:54
Speaker 1: the IRS front. The only thing I confused about is
8:57
Speaker 1: they previously had also sued the IRS whatever he was
9:01
Speaker 1: getting audited, if you'll recall a twenty sixteen, which is
9:04
Speaker 1: why that one goes back a decade or so. But
9:06
Speaker 1: the truth is is that this is one where originally,
9:10
Speaker 1: also I'm sure you've seen, they didn't even necessarily want
9:13
Speaker 1: this so called weaponization fund. He had wanted to be,
9:16
Speaker 1: you know, personally compensated. Whenever they decided that that one
9:21
Speaker 1: probably wasn't going to be able to work out. This
9:23
Speaker 1: seemed to be like the so called compromise. I actually
9:26
Speaker 1: do think out of all of the things Trump has done.
9:29
Speaker 1: This will be the one which is going to get
9:32
Speaker 1: much more legal scrutiny in the future than anything. There
9:35
Speaker 1: is just something fundamentally different about cutting a US Treasury
9:39
Speaker 1: trek at the total discretion of the President and or
9:42
Speaker 1: of his Attorney General to somebody with no real process,
9:47
Speaker 1: created taxpayer dollars effectively by Fiat power with no congressional oversight.
9:52
Speaker 1: This is the one that I actually do think will
9:55
Speaker 1: genuinely be a serious problem in the future. A lot
9:59
Speaker 1: of people think I'm like being exaggerated. Yeah, this one
10:01
Speaker 1: really is different. It's different, and I think it's important
10:04
Speaker 1: to recognize that well.
10:05
Speaker 2: And you're about to have Democrats have some power in
10:07
Speaker 2: the House and potentially also the Senate. I think very
10:10
Speaker 2: likely at this point that they're going to take both
10:12
Speaker 2: the House and the Senate. And you know, so they
10:15
Speaker 2: can't prosecute, but they can start building the case. They
10:19
Speaker 2: can do all the investigations, they can subpoena, they can
10:22
Speaker 2: you know, dig into Okay, how is this process playing out,
10:25
Speaker 2: who are these people, how are they being selected, et cetera.
10:28
Speaker 2: So you know, there may be some movement on that quickly,
10:31
Speaker 2: we'll see. But just one more piece here, because this
10:34
Speaker 2: is significant. This administration has been the most anti law
10:38
Speaker 2: and order administra as you can imagine when it comes
10:41
Speaker 2: to white collar crime and their own of course criminality.
10:45
Speaker 2: So you now have US prosecutors dropping these fraud charges
10:49
Speaker 2: against an Indian billionaires, one of the richest people on
10:52
Speaker 2: the planet, guatam Adani. And these were fraud charges that
10:58
Speaker 2: were you know, the initial prosecution was under the Biden administration. Essentially,
11:02
Speaker 2: the allegations are that there were hundreds of millions of
11:05
Speaker 2: dollars of bribes that were paid in order to secure
11:08
Speaker 2: deals within India. Now you might say, okay, with those India,
11:11
Speaker 2: what does that have to do with us? Well, US
11:13
Speaker 2: investors were misled on the basis of the presentation denying
11:18
Speaker 2: these you know, these.
11:19
Speaker 3: Alleged bribes, et cetera.
11:21
Speaker 2: So because you have the nexus of misleading US investors
11:25
Speaker 2: about this company, that's why the US has jurisdiction here,
11:29
Speaker 2: or claim to have jurisdiction here. So Trump, of course,
11:33
Speaker 2: immediately Donnie, once Trump gets elected, he's congratulating, Oh, you're
11:36
Speaker 2: such an incredible leader, You're going to do such great things,
11:39
Speaker 2: blah blah blah. Believe he hired a lawyer that's close
11:42
Speaker 2: in with the Trump family. He played the whole game
11:44
Speaker 2: and they all know how I mean, it's a whole
11:46
Speaker 2: pay to play operation to get charges dropped or to
11:48
Speaker 2: get your pardons, et cetera. At this point, we've seen
11:51
Speaker 2: this with these you know, these crypto guys who have
11:53
Speaker 2: been let off the hook as well the lowest number
11:56
Speaker 2: of white collar crime prosecutions that we've seen in modern
12:00
Speaker 2: history under this administration. They just don't care about white
12:04
Speaker 2: collar crime. They have defenestrated the regulatory apparatus so that
12:08
Speaker 2: these you know, oligarchs can get away with whatever they
12:12
Speaker 2: want as long as they stay on Trump's good side. Yeah.
12:14
Speaker 1: I didn't realize that the other person here is also
12:17
Speaker 1: named Sager, and Nanni his nephew.
12:19
Speaker 3: Yeah, I'm a little different though it is.
12:21
Speaker 1: Yeah one a Sager. I will say this one is
12:25
Speaker 1: even grazier because they proposed the ten billion dollar investment
12:30
Speaker 1: that was proposed by the government, but it wasn't cited
12:33
Speaker 1: by the DOJ when they dropped their case, so it
12:37
Speaker 1: was basically in order from the top. They say. In
12:39
Speaker 1: the final weeks of the admin the prosecutors had unsealed
12:42
Speaker 1: the indictment and the case which along with the SEC
12:45
Speaker 1: had basically been in limbo since then. I wouldn't be surprised. However,
12:50
Speaker 1: just being honest is if the Indian government had something
12:53
Speaker 1: to do with this, I don't know how much of
12:55
Speaker 1: this is at not because a Nanni and Mardi are
12:58
Speaker 1: like this.
12:58
Speaker 2: Yeah, recent you know, in the recent meeting, Mody got
13:02
Speaker 2: asked about and he described this as a quote personal
13:05
Speaker 2: matter and so oh we didn't talk about this whatever whatsoever.
13:08
Speaker 3: But I wouldn't doubt Also.
13:09
Speaker 1: Well, I don't know if Mody talked to him about it, now,
13:11
Speaker 1: did an Indian finance minister bring it up or something like? So,
13:14
Speaker 1: I would just it's my only flag is this may not.
13:17
Speaker 1: This may be above like pay to play and much
13:19
Speaker 1: be much more. I mean, he's one of the richest
13:21
Speaker 1: men in all of India. He's very important to the government.
13:23
Speaker 1: So I actually think that might have probably played a
13:26
Speaker 1: bigger role. But look, it's important to flag because it's
13:29
Speaker 1: like you were saying about fraud now, all this fraud stuff. Ye,
13:32
Speaker 1: that drives me crazy too, okay, And I will say,
13:35
Speaker 1: you know, I do think that there is like a
13:37
Speaker 1: disparity in the way that a lot of it is
13:39
Speaker 1: covered like, for example, we liberals tend to forgive like
13:43
Speaker 1: poor people committing fraud and are obsessed with rich people
13:45
Speaker 1: committing fraud. I think both are bad. Okay. Now, a
13:48
Speaker 1: lot of Republicans tend to overly focus on poor people
13:51
Speaker 1: committing fraud, and then when they're rich friends are committing fraud,
13:54
Speaker 1: they're like, oh, well it's different. No, it's all bad okay.
13:58
Speaker 1: And this problem, though, is that by and you know,
14:00
Speaker 1: I get it. You know a lot of Americans feel
14:02
Speaker 1: like the deck is stacked against them and they don't
14:04
Speaker 1: have as much against like some medicare fraudster or some
14:08
Speaker 1: whatever with those PPP loan fraudster as opposed to you know,
14:11
Speaker 1: a multi billionaire olig I totally understand. I do think
14:15
Speaker 1: both should be proscted a whole the rule of law.
14:17
Speaker 1: But that's what blows a hole in their whole crusade
14:21
Speaker 1: against fraud. When they're talking about a million or a
14:24
Speaker 1: billion or something like here in California, you're setting up
14:27
Speaker 1: slush fawnds, you're latting off billionaires, you're reducing white collar prosecutions.
14:32
Speaker 1: You're pardoning all of these guys who commit white collar
14:36
Speaker 1: crime because they happen to hire the right lawyer out
14:39
Speaker 1: of mar A Lago. It's like you have no standing,
14:42
Speaker 1: I think, in terms of the public eye about this
14:44
Speaker 1: actual issue of fraud. And you know that's honestly tragic
14:48
Speaker 1: because what it does is it creates this you know,
14:52
Speaker 1: I think I genuinely thought that that, you know, the
14:54
Speaker 1: fraud story not just in Minnesota, but California and all
14:57
Speaker 1: this like it is a real issue. It is now.
14:59
Speaker 1: I'm not going to say it's the number one biggest
15:01
Speaker 1: fiscal threat, but it's a problem. If you want a
15:03
Speaker 1: well functioning social safety net, which I think you and
15:07
Speaker 1: I do, people need to have confidence in said safety net.
15:10
Speaker 1: And a lot of people if you watch some Somali
15:13
Speaker 1: guy who's not even from here, who comes over here
15:16
Speaker 1: and starts ripping you off, Yeah, it makes me mad
15:19
Speaker 1: considering how much Pika that I have to pay. But
15:21
Speaker 1: it's also gonna make me mad when I see some
15:23
Speaker 1: Ponzi scheming, you know, you know, piece of shit who
15:26
Speaker 1: gets pardoned from Trump and then go out to Ponzi
15:29
Speaker 1: scheme again after he's been let out. So I can't
15:33
Speaker 1: live in that reality of both, if that makes sense.
15:35
Speaker 1: So I don't know I just feel like the fraud
15:37
Speaker 1: issue has become has become like socio cultural in a way,
15:42
Speaker 1: and instead like there are well meaning people, I think
15:45
Speaker 1: left and right who really would want to see a
15:48
Speaker 1: genuinely like orderly society and things like this, genuinely like
15:53
Speaker 1: both the Somali case and this are so utterly destructive
15:57
Speaker 1: to like any of your thought, because every rich guy
15:59
Speaker 1: in the world world right now is like, screw it,
16:01
Speaker 1: I'm not you know that. Everybody knows that when you're
16:04
Speaker 1: self employed and all that what you pay it's it's
16:07
Speaker 1: not like a real formula. There's no like x times
16:10
Speaker 1: why like whenever you're a W two you could write
16:13
Speaker 1: this off and then then you're like, well, what's my
16:15
Speaker 1: audit risk? Whenever it comes to this, And a lot
16:18
Speaker 1: of it, a lot of the tax code is in
16:20
Speaker 1: the gray area. I have some friends who are actually
16:21
Speaker 1: like filthy rich, and I'd even ask them, I'd be like, hey,
16:24
Speaker 1: how do you calculate their taxes? They're like, man, it's
16:26
Speaker 1: a game. Like it's a it's a game. The famous
16:29
Speaker 1: Rumsfeld letter that he would say, he said, this is
16:31
Speaker 1: what I'm paying you. I have no idea whether this
16:34
Speaker 1: is correct or not because of your irs, you go
16:37
Speaker 1: convoluted tax code. It shouldn't be that way, but everybody
16:40
Speaker 1: knows under this administration that's the way that it's going,
16:43
Speaker 1: and that is really intolerable whenever poor people are having
16:46
Speaker 1: such a hard time.
16:47
Speaker 2: Right now, completely yeah, where you're throwing a book. I mean,
16:49
Speaker 2: this was actually my legitimate criticism. I think of the
16:53
Speaker 2: way the generoistics prosecutions went abound. I think people who
16:56
Speaker 2: I think people commit a criminal acts on that day
16:58
Speaker 2: should be prosecuted. So gross to see, like, you know, Trump,
17:01
Speaker 2: who really is responsible for the whole thing, completely let
17:04
Speaker 2: off the hook and all of the top level players
17:06
Speaker 2: effectively be completely let off the hook. And I think
17:09
Speaker 2: it's the same thing overall when you look at like, oh,
17:11
Speaker 2: we're going to go after these small time fraudsters. But
17:15
Speaker 2: if you're a billionaire who's got access at maur A Lago,
17:17
Speaker 2: then forget about it. You can do you can pillage
17:20
Speaker 2: the country and the global economy with impunity, and they're
17:23
Speaker 2: going to let you off the hook. I mean, I
17:24
Speaker 2: will say, just to quibble, like dozens of prosecutions of
17:28
Speaker 2: Somali fraudsters started under the Biden administration, many more so
17:30
Speaker 2: than under the Trump administration. So I one hundred percent
17:34
Speaker 2: agree with your view of we should have equal application
17:37
Speaker 2: of the laws.
17:38
Speaker 1: That's all I want.
17:39
Speaker 2: And it is important if you're going to get people
17:41
Speaker 2: to buy and believe in a large social safety net,
17:45
Speaker 2: that people feel like their money is not being you know, pillaged,
17:48
Speaker 2: and that it is being distributed fairly and people aren't
17:51
Speaker 2: you know, gaming.
17:52
Speaker 1: Because I'm sure you don't feel like when I paid
17:54
Speaker 1: my taxes in April, I felt sick, like I actually
17:57
Speaker 1: with the war going on, I'm like, I feel ill.
18:00
Speaker 2: Well, and that has for me more to do with
18:02
Speaker 2: the war and the genocide than it does with you know, well,
18:06
Speaker 2: I mean, yeah, that's that's a big thing that.
18:08
Speaker 3: Makes me just true. But because I know where it's going,
18:11
Speaker 3: it's going.
18:11
Speaker 1: To war, that's fair. But I felt that way I'm
18:13
Speaker 1: saying with the war with Iran, it's it wasn't just
18:16
Speaker 1: like what you were talking about with Israel. I'm like,
18:17
Speaker 1: my own countrymen are being killed in this stupid war.
18:22
Speaker 1: All this money's being pissed away. Yeah, one hundred and
18:25
Speaker 1: sixty eight Iranian schoolgirls are dead, and that's what this
18:28
Speaker 1: shit is paying for. And then oh, I look, you know,
18:30
Speaker 1: I go outside my front door and some guy's doing
18:33
Speaker 1: the fentanyl lean. I'm like, great, awesome, better not call
18:36
Speaker 1: nine to one one. Nobody's going to do a fucking
18:38
Speaker 1: thing about it. Like that's the true that like reality,
18:41
Speaker 1: I think for a lot of people, especially you know,
18:43
Speaker 1: for self employees, we literally have to pay our own taxes,
18:46
Speaker 1: which is somehow psychologically harder than whatever it's taken out
18:49
Speaker 1: checking out. Yea, yeah, well it's much easier, trust me,
18:51
Speaker 1: whenever it's taken out of your W two paycheck. But
18:54
Speaker 1: the thing is is that for you know, I'm sorry
18:57
Speaker 1: to derail this whole fraud combo, but I do think
18:59
Speaker 1: it's import It gets to the heart of why Doge
19:02
Speaker 1: and a lot of the Trump revolutionary spirit was popular
19:05
Speaker 1: in the first place, which yes, I know how it
19:07
Speaker 1: turned out, but try to remember what the vibes and
19:09
Speaker 1: the feeling of that were. Like people do feel like
19:11
Speaker 1: the government doesn't do anything for them. That experience I
19:14
Speaker 1: just laid out of your neighborhood looks like shit or
19:17
Speaker 1: there's crime, and people literally don't do anything about it,
19:20
Speaker 1: while you know, our money is getting pissed away in
19:22
Speaker 1: Israel or Gaza or in Iran or Ukraine and all that,
19:27
Speaker 1: like it's an enraging experience, or whenever you pay your help,
19:30
Speaker 1: when my healthcare premium goes up by twenty five percent
19:34
Speaker 1: or whatever and then some frauds are out there, is
19:37
Speaker 1: getting free healthcare in an emergency room makes me mad.
19:40
Speaker 1: But it also makes me mad when I see these
19:42
Speaker 1: ponzi schemers who are doing medicare fraud at a high level.
19:47
Speaker 1: Who will become I don't know, ed state senators without
19:51
Speaker 1: impugning anybody's character, you know or.
19:55
Speaker 2: Legal Yes, I mean, I do think this is why
19:58
Speaker 2: Zorn's model in New York is so important, because he
20:00
Speaker 2: does take seriously the things you're talking to.
20:02
Speaker 3: You know, they did a.
20:03
Speaker 2: Whole audit of the entire budget, and you know, they
20:05
Speaker 2: did their own like version of Doge, but also maintained
20:10
Speaker 2: the public spending on education and public libraries and the
20:13
Speaker 2: things that people genuinely benefit collectively benefit from in the city.
20:17
Speaker 2: And you know, I think so far he has really
20:21
Speaker 2: demonstrated that level of responsiveness where people feel like, Okay.
20:25
Speaker 3: You know, I'm paying in, but I'm.
20:27
Speaker 2: Also I can see that there's like a care and
20:30
Speaker 2: concern about what's happening in the city. So yes, that
20:32
Speaker 2: is the type of government.
20:33
Speaker 1: And a lot of Nordic's social welfare states with the
20:35
Speaker 1: strongest ones, they have crazy fraud departments. You wouldn't even
20:38
Speaker 1: be like Denmark and a lot of these countries like
20:40
Speaker 1: you really should study how they how they handle it's
20:43
Speaker 1: on immigration into they are they do not fuck around
20:46
Speaker 1: in the same way that they do, So anyway, do
20:48
Speaker 1: some studying of that. I do think it's a really
20:50
Speaker 1: important issue and it's really actually gross to see it
20:53
Speaker 1: like cynically exploited. And I think what this will do
20:57
Speaker 1: will further degradate the norms and create governments of the
21:02
Speaker 1: immediate term political allies in the same way that late
21:06
Speaker 1: stage republics always do. They become, you know, basically, what
21:11
Speaker 1: did we decide on yesterday? Kleptocracies like we will basically
21:14
Speaker 1: just create, you know, new versions of kleptocracies with individual
21:18
Speaker 1: constituencies fighting over who gets salute the treasury for while
21:21
Speaker 1: they're in power.
21:22
Speaker 2: That's certainly the precedent that's being established right now. So
21:25
Speaker 2: we'll see if it see if that continues. All right,
21:27
Speaker 2: let's talk about the rejection mass societal rejection of AI
21:32
Speaker 2: and data centers. First of all, a significant update in
21:37
Speaker 2: a lawsuit that Elon Musk filed against Sam Altman's Open Ai.
21:42
Speaker 3: Let's go and put this up on the screen.
21:44
Speaker 2: So federal court has rejected these claims against open ai,
21:48
Speaker 2: but based on a technicality, saying effectively that the statute
21:51
Speaker 2: of limitations had run that the lawsuit had been filed
21:54
Speaker 2: too late. We've covered some of this previously on the show. Basically,
21:57
Speaker 2: Elon and Sam Altman with others started open ai with
22:01
Speaker 2: the idea that they were concerned about the direction of
22:03
Speaker 2: AI development. They wanted it to be non profit, and
22:07
Speaker 2: they also wanted it to be open source. Elon alleges,
22:10
Speaker 2: and I think with some standing here, some standing in
22:14
Speaker 2: the claims that he's making, that Sam Altman abandoned those promises,
22:19
Speaker 2: turned it, and this is clear, into a for profit entity.
22:22
Speaker 2: And also it went from being open source too obviously
22:24
Speaker 2: it was no longer open source.
22:26
Speaker 3: So that's what this lawsuit.
22:27
Speaker 2: Is over again, thrown on a court but not based
22:30
Speaker 2: on the merits of the claims, based on the fact
22:34
Speaker 2: that it was filed too late. Not that I think
22:36
Speaker 2: there are really any heroes in this story, because Elon
22:39
Speaker 2: has just you know, Elon's trajectory is actually very interesting
22:41
Speaker 2: because originally he was very concerned about the AI development
22:45
Speaker 2: and you know, keeping it under control and we have
22:48
Speaker 2: to make sure that this doesn't become an existential threat
22:50
Speaker 2: to humanity. And then basically after this split with Sam Altman,
22:54
Speaker 2: now he's just like, Okay, well, if it's off to
22:56
Speaker 2: the races, then I'm going to be off to the
22:58
Speaker 2: races as well. I'm going to be just as like unscrupulous,
23:00
Speaker 2: a you know, a steward of AI development as anyone else,
23:04
Speaker 2: if not more so. Grock has been one of the
23:06
Speaker 2: worst in terms of just taking all of the guardrails
23:09
Speaker 2: off and you know, sort of letting a rip.
23:11
Speaker 3: So in any case, so I'm not even that good
23:13
Speaker 3: and it's the worst.
23:14
Speaker 4: It's not good.
23:14
Speaker 2: Yeah, I mean he's desperate, right, it's it's honestly the
23:17
Speaker 2: worst one of the major model.
23:18
Speaker 1: What he is doing is he's doing the chip stuff.
23:21
Speaker 1: It's actually interesting. Not to derail this entire thing, but
23:23
Speaker 1: the chip project that they're working on is actually very interesting.
23:26
Speaker 1: The one that's backstopping the what is it, the backstopping
23:29
Speaker 1: anthropic which is allowing them higher levels of compute but
23:32
Speaker 1: back to the core claim Elon was obviously correct, like
23:35
Speaker 1: what happened with AI open AI is insane. I still
23:37
Speaker 1: have no idea how it is legal. You have a
23:39
Speaker 1: nonprofit which splits into two kind of to create a
23:42
Speaker 1: for profit trillion dollar company which creates which will when
23:46
Speaker 1: an IPOs, create more billionaires in a single day than
23:49
Speaker 1: any time in the history of humanity. So okay, like
23:52
Speaker 1: it was all founded, a for profit company was founded
23:56
Speaker 1: on the basis of we need open AI quite literally,
23:59
Speaker 1: so that all of humanity can benefit, and so it
24:01
Speaker 1: will be researched and done in such a way that
24:04
Speaker 1: it is not gated. It has made it so that
24:06
Speaker 1: it's open for science and for everything else. How is
24:08
Speaker 1: that humanly possible in a ten year period that this
24:11
Speaker 1: is exactly where we have ended up. It's so ridiculously
24:15
Speaker 1: of certain.
24:15
Speaker 2: Because they all get into the same mentality of, well,
24:19
Speaker 2: if I don't do it, then this person's going to
24:21
Speaker 2: and it's going to be Dario, then it's going to
24:22
Speaker 2: be Zuckerberg, then it's going to be the Chinese or whatever,
24:25
Speaker 2: and so they all get into this mentality of that's
24:27
Speaker 2: why I have to sort of abandon caution, throw caution
24:31
Speaker 2: to the wind and just develop as fast as I
24:33
Speaker 2: can and for as much money as I possibly can.
24:35
Speaker 2: And so basically they all have the same mentality, you know,
24:38
Speaker 2: I think anthropic has been the most responsible. But still
24:41
Speaker 2: as long as this development is in the hands of
24:44
Speaker 2: a few aligarchs, this is a very dire situation for
24:48
Speaker 2: the for America, for the world, all sorts of risks,
24:51
Speaker 2: and the public is really waking up to this, as
24:53
Speaker 2: evidenced by the fact you've had a number of commencement
24:56
Speaker 2: speakers who were booed when they brought up AI development. Now,
25:01
Speaker 2: it's also sort of extraordinary that they didn't anticipate that
25:04
Speaker 2: this would be a controversial topic, to say the least,
25:08
Speaker 2: speaking to new graduates who are facing down a job
25:12
Speaker 2: market that has been degraded by the advent and continued
25:16
Speaker 2: development of AI. But in any case, we put together
25:19
Speaker 2: a little compilation here for you of some of the
25:21
Speaker 2: most noteworthy events where speakers are getting booed, and I
25:24
Speaker 2: think we're starting here with Google's Eric Schmidt. Let's go
25:27
Speaker 2: ahead and take a listen to that.
25:28
Speaker 5: Last December, Time magazine selected its Person of Year for
25:33
Speaker 5: twenty twenty five, and with this Time it was the
25:36
Speaker 5: architects of artificial intelligence. Interesting, it will touch every profession,
25:45
Speaker 5: every classroom, every hospital, every laboratory, every person, and every
25:50
Speaker 5: relationship you have. I know what many of you are
25:54
Speaker 5: feeling about that. I can hear you. There is a fear.
26:03
Speaker 4: We do not know.
26:05
Speaker 6: The rise of artificial intelligence is the next industrial revolution?
26:15
Speaker 7: WHOA what happened? Okay, I struck a chord? May I finish?
26:34
Speaker 6: Only a few years ago, AI was not a factor
26:40
Speaker 6: in our lives.
26:47
Speaker 3: HI graduates, everyone who is standing.
26:54
Speaker 1: This, what's this is?
26:55
Speaker 3: Here's what's happening.
26:56
Speaker 1: We're using a new AI system as our reader. Yeah, yeah, so.
27:09
Speaker 5: That is that is a lesson.
27:10
Speaker 1: Learned for us.
27:12
Speaker 2: So in case you didn't catch what was going on
27:14
Speaker 2: in that last one, they used a new AI system
27:17
Speaker 2: to read off graduates names and it forgot I don't
27:21
Speaker 2: know how many. And so the ones who were still
27:23
Speaker 2: standing were the ones who never had their name called
27:26
Speaker 2: because their new AI system, why do you need an
27:29
Speaker 2: AI system to read people anyway, screwed up and failed
27:32
Speaker 2: to announce them. So they didn't get to do, you know,
27:35
Speaker 2: walk across the stage and do their whole thing because
27:37
Speaker 2: of this. But I mean, pretty wild to see the
27:41
Speaker 2: overwhelming negative response among new graduates to even the mention
27:46
Speaker 2: of AI from these people. And you can see that
27:49
Speaker 2: second woman like very uncomfortable and giggling and like, oh,
27:52
Speaker 2: I didn't really know that this was going to go
27:53
Speaker 2: that way.
27:54
Speaker 1: I loved it. I like to make them uncomfortable. The
27:56
Speaker 1: kids are all right, Look, I actually think this is
28:00
Speaker 1: is it importance? This is an important view? So what
28:03
Speaker 1: are these kids booing? Because I can guarantee you one
28:06
Speaker 1: hundred and eight percent of them used Chat, Gipt, Claude,
28:10
Speaker 1: or Gemini to help them while they were in school,
28:12
Speaker 1: probably literally, Like I would be hard pressed to find
28:15
Speaker 1: a single one who was actually graduating college today who
28:19
Speaker 1: had not used it. So what do they think. They
28:21
Speaker 1: recognize the utility of AI. We do too. We recognize
28:26
Speaker 1: the utility as a tool to help human accomplishment. What
28:31
Speaker 1: they do not recognize is the term industrial revolution and
28:36
Speaker 1: of the replacement rhetoric, which every one of these CEOs
28:40
Speaker 1: fundamentally believes in. And I think that is the difference.
28:43
Speaker 1: We can celebrate, not necessarily celebrate, but we can say, wow,
28:47
Speaker 1: this technology is useful, it makes things more efficient. That
28:51
Speaker 1: does not mean that I am going to fully embrace
28:54
Speaker 1: the techno utopian vision of all the CEOs and others
28:58
Speaker 1: behind it. And that's what explained because I see there's
29:01
Speaker 1: so much criticism that I see every like what I
29:03
Speaker 1: just said, every one of these kids use AI to
29:05
Speaker 1: help them graduate. I'm like, yeah, but you're not getting it, bro.
29:08
Speaker 1: They used AI to help them graduate, to have a
29:11
Speaker 1: degree and to learn. You're trying to have AI replace
29:15
Speaker 1: their need for a graduate degree at all period. So
29:19
Speaker 1: that's the difference. They can use the tool, but they
29:22
Speaker 1: do not want and are definitely not signing up for
29:25
Speaker 1: some sort of a revolution where it will entirely replace
29:27
Speaker 1: them and all of their human labor. And I think
29:29
Speaker 1: that's how everybody needs to square this rule and.
29:31
Speaker 2: Where their whole future is being put in the hands
29:34
Speaker 2: of this handful of all garchs. I mean that's the
29:36
Speaker 2: part too, is it's like we have not given consent,
29:40
Speaker 2: We have no say over this. This is something that
29:42
Speaker 2: is being done to us versus something that we have
29:44
Speaker 2: some sort of democratic control over. And say that for
29:48
Speaker 2: me is the biggest rub. I can imagine a reality,
29:51
Speaker 2: a very different reality than the one we live in
29:53
Speaker 2: where I'm just like excited about AI and like, oh,
29:55
Speaker 2: this could be really amazing, and I already see you know,
29:58
Speaker 2: I tinker around with it. You know, we've tinkered with
30:00
Speaker 2: it here. The things that it can already do are
30:03
Speaker 2: is incredible. Not to say there aren't hallucinations and there
30:05
Speaker 2: aren't still problems to be worked out, but you know,
30:08
Speaker 2: I would love to be in a place where I
30:09
Speaker 2: could just be excited about this, where I felt like
30:11
Speaker 2: human beings would be centered versus Right now, these oligarchs,
30:16
Speaker 2: they're traders to humanity. They want to they prefer the robots.
30:20
Speaker 2: They want to replace us with robots. That's who we're
30:23
Speaker 2: up against. That's what the booz are about, is the
30:26
Speaker 2: fact that they see these oligarchs who are controlling AI
30:31
Speaker 2: as traders to humanity as they should. Had a recent
30:35
Speaker 2: interesting comment here from or actually let's do the polling first,
30:38
Speaker 2: but D three up on the screen. This just reflects,
30:40
Speaker 2: you know, the trends that we're seeing AI skepticism grows
30:44
Speaker 2: among US youth, backlashes growing the US, especially among young people.
30:48
Speaker 2: From Google CEO Eric Schmidt was booed as they gave
30:50
Speaker 2: a university commencement. As we just showed you, polls show
30:53
Speaker 2: seventy percent of Americans think AA is moving too fast.
30:57
Speaker 2: Over fifty percent of Americans have negative views of it.
31:00
Speaker 2: You're ready for this? Just eighteen percent of young people
31:05
Speaker 2: say they feel hopeful about it. Partly they are turned
31:08
Speaker 2: off by AI's upending of the job market. Quote every
31:11
Speaker 2: other day, a new AI agent is being released in
31:14
Speaker 2: the market, said a recent graduate of UC Davis who's
31:18
Speaker 2: applied to five hundred jobs so far. Quote what am
31:21
Speaker 2: I doing with my life? So that is you know,
31:25
Speaker 2: I mean, it's very understandable. They're coming out into this
31:28
Speaker 2: new world. You can see that companies aren't doing massly.
31:32
Speaker 2: There are some layoffs, but companies aren't doing mass layoffs.
31:34
Speaker 2: They're just not hiring these new grads because they already
31:37
Speaker 2: see the way they're able to integrate AI to replace them,
31:41
Speaker 2: to lower the number of human beings that they need
31:43
Speaker 2: to add on. And they're richly rewarded for that by
31:46
Speaker 2: Wall Street. So it creates even more of an incentive
31:48
Speaker 2: even before they've figured out how they can fully replace
31:51
Speaker 2: the humans. It creates an even more of an incentive
31:53
Speaker 2: to adopt this technology and show their moving in that.
31:55
Speaker 1: Yeah, the polling is really important because what they're concerned
31:58
Speaker 1: about is they see all of the rhetoric that comes
32:01
Speaker 1: from them. And also, look, I mean the richest, most
32:03
Speaker 1: powerful people in the world are all celebrating, not just
32:06
Speaker 1: like I celebrate whenever it can save us a little
32:08
Speaker 1: bit of time. I'm not going to be sitting around
32:10
Speaker 1: celebrating talking about Oh look at its ability to replace
32:14
Speaker 1: all of this different human labor. So, for example, D four,
32:18
Speaker 1: let's take a listen. This is Ken Griffin talking about AI,
32:22
Speaker 1: one of the richest financiers in the world.
32:25
Speaker 4: Let me just share a few thoughts with you on this.
32:28
Speaker 4: Number one is.
32:30
Speaker 8: In the last few months, there has been a step
32:33
Speaker 8: change function in the productivity of the AI toolkit. Is
32:39
Speaker 8: it is profoundly more powerful than it was just nine
32:44
Speaker 8: months ago. And for us at Citadels, that has allowed
32:48
Speaker 8: us to unleash a.
32:49
Speaker 4: Much broader array of use cases for AI.
32:54
Speaker 8: And it has been really interesting to watch to be
32:58
Speaker 8: blunt work that we would usually do with people with
33:01
Speaker 8: masters and PhDs in finance over the course of weeks
33:05
Speaker 8: or months being done by AI agents over the course
33:09
Speaker 8: of hours or days. So these are not these are
33:14
Speaker 8: not mid tier white collar jobs. These are like extraordinarily
33:19
Speaker 8: high skilled jobs being I'm going to pick a word
33:23
Speaker 8: being automated by agenic Ai, and I gotta tell you,
33:29
Speaker 8: I went home one Friday actually fairly depressed by this.
33:35
Speaker 4: Because you could just see how this.
33:37
Speaker 8: Was going to have such a dramatic impact on society.
33:43
Speaker 8: And when you witness in your own four walls, when
33:45
Speaker 8: you see work that used to be man years of
33:47
Speaker 8: work being done in days or weeks, it's like wow,
33:52
Speaker 8: like that's the first time I've seen real impact in
33:56
Speaker 8: our four walls.
33:57
Speaker 1: There you go these literally what's his net or it's
34:00
Speaker 1: like forty billion something like that, like whenever you earn
34:03
Speaker 1: a run one of the top finance trading desks and
34:07
Speaker 1: all of Wall Street. And he even said these are
34:09
Speaker 1: not mid tier white collar jobs. These are extraordinarily high
34:12
Speaker 1: skilled jobs. I'm going to be pick a word automated
34:15
Speaker 1: by agentic Ai, and he said that that's what made
34:18
Speaker 1: him depressed. That is the vision, the goal, and that's
34:22
Speaker 1: what people are rebelling against.
34:23
Speaker 2: Well. And it's very interesting because typically, and certainly in
34:27
Speaker 2: recent times here with technological innovation, it's usually young people
34:31
Speaker 2: who are most excited embrace it first.
34:33
Speaker 3: It's usually I mean think about it's usually the.
34:35
Speaker 2: Older people are like, back in my day and it
34:37
Speaker 2: wasn't like this, and these kids with their screens or whatever.
34:40
Speaker 2: And young people are like, no, this is great, Like
34:42
Speaker 2: I'm enjoying this and I can see what social media
34:44
Speaker 2: is going to do.
34:45
Speaker 3: For the future.
34:45
Speaker 2: Now, it turns out the older people, we've had a
34:47
Speaker 2: point with some of this stuff.
34:49
Speaker 1: Yeah, the silent gen was right about Facebook, and it's
34:52
Speaker 1: time to admit it.
34:52
Speaker 2: Yeah, in any case, but normally that that is the
34:55
Speaker 2: way it works. Young people are like just excited about Oh,
34:57
Speaker 2: this is changing, this is new, and this is you know,
34:59
Speaker 2: this is going change the world in a way that's positive,
35:02
Speaker 2: and older people are wanting to maintain the way things
35:05
Speaker 2: previously were when they were growing up and their understanding
35:08
Speaker 2: of the world. Here you have a total reversal where
35:12
Speaker 2: it's older Americans who have actually less exposure to the
35:17
Speaker 2: new technology, less understanding of it, who.
35:19
Speaker 3: Are the most excited about it, who are the most open.
35:23
Speaker 2: To it, whereas younger people, who have a deeper understanding
35:27
Speaker 2: of the technology and more use with it and see
35:29
Speaker 2: more directly its impact on the world are the ones
35:32
Speaker 2: who have the deepest reservations. I think that's very telling.
35:36
Speaker 2: I think that's actually really, you know, quite a dire
35:40
Speaker 2: sign of where things are heading, because the very people
35:42
Speaker 2: who are most exposed to it are the ones who
35:45
Speaker 2: have the lowest opinion of it and want to put
35:47
Speaker 2: the genie back in.
35:48
Speaker 1: They're also the victims of technology. Like we were young
35:51
Speaker 1: enough to be naive about the promises of social I mean,
35:55
Speaker 1: come on, there wasn't a little part of you that
35:57
Speaker 1: was tingling around the Arab spring red in twenty eleven.
36:00
Speaker 1: Course there was. You got to be on it. I
36:03
Speaker 1: was in college. Yeah, I had of Egyptian friends. They're
36:06
Speaker 1: crying about their families finally free and Twitter. I believed it, man,
36:10
Speaker 1: I really did. When I got that iPhone four, I
36:13
Speaker 1: was like, this worker is going to change the world.
36:15
Speaker 2: This is going to be a new day democracy and
36:17
Speaker 2: people are going to have input and you know, I mean,
36:20
Speaker 2: and this it could have gone that way too, by
36:22
Speaker 2: the way, there was a possibility that it could.
36:24
Speaker 3: Have gone that way. But I mean, I don't know.
36:27
Speaker 2: Maybe, but there was you know, the early days of
36:29
Speaker 2: the Internet were much more open and much more grassroots
36:33
Speaker 2: versus it became much more corolled and controlled and much
36:35
Speaker 2: more top down, algorithmically driven et cetera.
36:38
Speaker 3: But yeah, you're right about that.
36:40
Speaker 2: Now they've seen the wreckage of the promised previous promises
36:44
Speaker 2: of the you know, technological development, and so there is
36:47
Speaker 2: a wariness there to begin with. And then you add
36:50
Speaker 2: to that the fact that they're looking they're thinking about college.
36:54
Speaker 2: I mean, my daughter literally graduates today, congraduate graduate. But
36:57
Speaker 2: you know, they're looking at college and thinking about what
36:59
Speaker 2: to study or what job to try to take up.
37:01
Speaker 2: And it's it's impossible to that's the toughest question.
37:04
Speaker 3: It's impossible to.
37:05
Speaker 1: Know what should I study? Like, dude, I don't know.
37:07
Speaker 1: I really don't know. You know, it would be easy
37:10
Speaker 1: to be like, oh, learn a trade, but they're like,
37:11
Speaker 1: what if I don't want to? You know, what I
37:14
Speaker 1: usually say is learn how to read and learn how
37:16
Speaker 1: to think. I know it's a total cop out answer,
37:18
Speaker 1: but I'm like, at the very least, that one will
37:20
Speaker 1: not be automated, hopefully anytime soon. If you learn how
37:23
Speaker 1: to think, how to study, decision making and the various
37:27
Speaker 1: different approaches that people have, then that will hopefully put
37:30
Speaker 1: you in a good position whenever it comes time to
37:33
Speaker 1: make big decisions in your own life. That's genuinely all
37:36
Speaker 1: I can give you. I can't give you coding or
37:38
Speaker 1: accounting or don't do it literally, yeah, any I'm saying,
37:42
Speaker 1: or you know, literary or physics or any of these things,
37:45
Speaker 1: just because I don't. I don't see how that won't,
37:49
Speaker 1: you know, at the very least be attacked sometime in
37:52
Speaker 1: the future. Anyway, it's been, you know, interesting discussion. Let's
37:55
Speaker 1: get too Cars for Kids. We talked a lot about
38:00
Speaker 1: fraud earlier in our show, and this very interesting case
38:04
Speaker 1: out of the state of California with a jingle that
38:06
Speaker 1: many of you might remember one eight seven seven Cars
38:09
Speaker 1: for Kids stuck in the brains of a lot of us.
38:13
Speaker 1: I think they called it an earworm. But this new
38:15
Speaker 1: court case in California exposes something truly shocking. Let's go
38:19
Speaker 1: and put it up here on the screen. A court
38:22
Speaker 1: has now banned these Cars for Kids ads in the
38:25
Speaker 1: state of California. They as they report here in the
38:29
Speaker 1: local NBC News Bay Area, Cars for Kids, known for
38:32
Speaker 1: its catchy jingle, will no longer broadcast ads in California.
38:35
Speaker 1: The Orange County judge found that the charity violated false
38:39
Speaker 1: advertising laws. The case stems from a lawsuit in twenty
38:43
Speaker 1: twenty one, a man sued the charity's affiliated organization Urrah, Inc.
38:48
Speaker 1: Where he discovered that the money from the car he
38:51
Speaker 1: donated was not going to underprivileged children in California. Instead,
38:55
Speaker 1: the money landed with an Orthodox Jewish group in New
38:58
Speaker 1: York and New Jersey that teenagers on gap year trips
39:01
Speaker 1: to Israel with their families. Cars for Kids' ads we
39:04
Speaker 1: banned in California until there is an audible disclosure on
39:08
Speaker 1: the charity's religious affiliation, the region of where the money goes,
39:12
Speaker 1: and a more accurate age range of the recipients. Now
39:16
Speaker 1: to be clear here, Cars for Kids is denying that
39:20
Speaker 1: they weren't open about this. Let's put e five up
39:22
Speaker 1: here on the screen. They say that the California court
39:25
Speaker 1: order to pull its ads is deeply flawed and claims
39:29
Speaker 1: that their religious affiliation was clear.
39:31
Speaker 3: All right. Was it clear to y'all? Wasn't clear to me?
39:34
Speaker 1: You can certainly make up your mind for yourself. Carser
39:37
Speaker 1: Kids says it is well known we are a Jewish
39:40
Speaker 1: organization and referred to the suit as a lower lawyer
39:43
Speaker 1: driven attempt to siphon off charitable funds from their own gain. Again,
39:47
Speaker 1: the organization is based in the predominantly Orthodox Jewish city
39:51
Speaker 1: of Lakewood, New Jersey, and claims it has helped quote
39:55
Speaker 1: hundreds of Californians. Now, some of the details here are
39:59
Speaker 1: genuinely shocking, So just to read here a little bit
40:02
Speaker 1: from the New York Times in their writeup of what
40:05
Speaker 1: actually happened. Is it primarily funds this New Jersey based
40:09
Speaker 1: Jewish and organization, AURA, which provides programs including an adult
40:13
Speaker 1: matchmaking service, trips to Israel for teens, and summer camps
40:17
Speaker 1: in New York. The only program in California the Carter
40:20
Speaker 1: Kids sponsored was a promotional giveaway of cars for kids
40:24
Speaker 1: branded backpacks. Similarly, what they write is that there was
40:28
Speaker 1: a there was testimony where they testified actually that about
40:33
Speaker 1: forty five million dollars a year that they raised, sixty
40:37
Speaker 1: percent goes to URA, its sister organization, which operates out
40:42
Speaker 1: of that same building in Lakewood, New Jersey. Another thirty
40:45
Speaker 1: percent is spent on in house advertising, six percent on
40:49
Speaker 1: administrative costs. AURA has also spent the money overseas, the
40:53
Speaker 1: judge wrote, including sixteen point five million dollars to buy
40:57
Speaker 1: a building in Israel. And so when we went down
41:00
Speaker 1: a little bit further, let's put E four some of
41:03
Speaker 1: the photos that we were able to find from AURA,
41:07
Speaker 1: this organization. They include, you know, some of these. By
41:10
Speaker 1: the way, I literally pulled this image. It's from their
41:13
Speaker 1: own website. If anybody's accusing me of doctoring it. This,
41:16
Speaker 1: for example, is last Chance Deadline. It features their mascot
41:21
Speaker 1: five Ish, which is a five dollars bill speaking into
41:24
Speaker 1: a microphone saying the biggest event of the year arithon.
41:28
Speaker 1: They have several images that they show of this mascot,
41:32
Speaker 1: in some cases with Orthodox Jewish children which are around it.
41:36
Speaker 1: So it is I mean, look, it's shocking to me
41:39
Speaker 1: because of the ubiquity of the jingle of the one
41:42
Speaker 1: to a seven seven. Everybody knows that. And this gets
41:45
Speaker 1: to what we were talking about earlier with fraud. Just
41:48
Speaker 1: the other day, I told a story at our ame.
41:50
Speaker 1: I was at Old Navy and there was some organization
41:53
Speaker 1: where the guy was like, hey man, we buy clothes,
41:56
Speaker 1: like cheap clothes for foster kids. I'm like, you know,
41:59
Speaker 1: I put a toy out of my wallet and I
42:01
Speaker 1: was like, here you go. Now, I'm like, I don't know,
42:04
Speaker 1: you know, this is something like this. I'm like, maybe
42:06
Speaker 1: I'm an idiot, you know. It's like a drug addict
42:08
Speaker 1: who is pretending or something. I have no idea. I
42:10
Speaker 1: hope that's not the case. Maybe I got bamboozled. But
42:13
Speaker 1: this is the type of stuff which really makes you
42:15
Speaker 1: think about it. And yeah, I mean, I had a
42:18
Speaker 1: hard time getting through a lot of that with a
42:19
Speaker 1: straight face. But I mean it's crazy. It's objectively crazy.
42:23
Speaker 1: One of the most famous jingles on all of television.
42:26
Speaker 1: A nonprofit based organization that it ends up this California
42:30
Speaker 1: court decision finds that their religious affiliation is undisclosed and
42:35
Speaker 1: that the testimony from the actual court case reveals how
42:38
Speaker 1: much of that money is being funneled to this separate
42:41
Speaker 1: Orthodox Jewish group. There's nothing wrong with people who want
42:44
Speaker 1: to support an Orthodox Jewish group or whatever they want
42:46
Speaker 1: to do. That's fine, that's your right as Americans. However,
42:50
Speaker 1: using this advertising, which a lot of people, well meaning folks,
42:53
Speaker 1: people like me, who are like, yeah, let's give money
42:55
Speaker 1: to foster children, and then if that is then used
42:58
Speaker 1: for different purpose, that's a very very different story.
43:01
Speaker 3: Yeah.
43:01
Speaker 2: Yeah, I mean the assumption when you hear that, the
43:05
Speaker 2: intended assumption which is made is that they're taking these
43:09
Speaker 2: cars and they're you know, selling them off for parts
43:12
Speaker 2: or whatever, and the money is going to benefit underprivileged
43:15
Speaker 2: children of all stripes.
43:17
Speaker 3: That is what you assume.
43:19
Speaker 2: And by the way, this organization Aura it's not just
43:23
Speaker 2: about kids even, it's like, you know, adult matchmaking services
43:27
Speaker 2: and what is all kinds of stuff that they're doing.
43:28
Speaker 2: But it's not anything approaching what most people thought that
43:32
Speaker 2: this money was probably going towards, which is why this
43:35
Speaker 2: judge in California. And I think the standard for false
43:38
Speaker 2: advertisement fraudulent advertisement is pretty high because you see a
43:43
Speaker 2: lot of claims on TV which are like, oh, it's
43:45
Speaker 2: not really true. Are You can make a lot of
43:48
Speaker 2: claims on TV without it being deemed to be fraudulent advertisement.
43:52
Speaker 2: So it's a pretty high bar they had to meet
43:54
Speaker 2: to be like, no, this is too far. You are
43:57
Speaker 2: deliberately misleading people to thinking that they're money and their
44:00
Speaker 2: donation is going to something which it is not going to.
44:03
Speaker 3: I told you yesterday.
44:04
Speaker 2: I'm pretty sure I have to go back and double check,
44:06
Speaker 2: but I'm pretty sure that my old Volvo was that
44:10
Speaker 2: I donated to cars for kids, you know what. I'd
44:13
Speaker 2: had it a long time and I had like two
44:14
Speaker 2: hundred thousand miles and I was stopped working and I
44:16
Speaker 2: was like, all right, I need to get rid of
44:17
Speaker 2: this thing. What's the easiest thing? Oh, cars for kids?
44:20
Speaker 2: That's you know, that's the first thing that pops to mind.
44:22
Speaker 2: And I now, yeah, I feel like I should have
44:26
Speaker 2: investigated them more. I should have looked into where's the
44:27
Speaker 2: money actually go et cetera. But you know, I, like
44:31
Speaker 2: many people have just assumed, you know, Okay, this is
44:33
Speaker 2: an easy way to get rid of my car and a.
44:35
Speaker 1: Famous thing whatever. You have no real you know, it's it's.
44:38
Speaker 2: Like saying, yeah, I mean it's solving a problem that
44:41
Speaker 2: I have, and I assume it's going to some sort
44:43
Speaker 2: of reasonable purpose to we're just going with it.
44:46
Speaker 1: I mean, you're in the DMV, you were inundated with
44:48
Speaker 1: street canvassers, you know, Save the Children, Plan, Parenthood whatever.
44:53
Speaker 1: So it's common, but at the very least, like, you know,
44:56
Speaker 1: I usually just pretend that I'm on a phone call
44:58
Speaker 1: whenever I walk past them. But what was that? Sorry
45:02
Speaker 1: I can't hear you. But one of the things that
45:04
Speaker 1: you at least know about those organizations is they're usually
45:09
Speaker 1: like pretty well vetted you know, you know what saved
45:11
Speaker 1: the children? Does you know what planned parenthood? Does you
45:14
Speaker 1: know what you could disagree? You know whatever medicon songs
45:16
Speaker 1: front tier any of these organizations. But then I, again
45:21
Speaker 1: very naively assume Cars for Kids is in that category.
45:24
Speaker 1: How else can something be on the air for over
45:25
Speaker 1: twenty years, right? And nobody from the better business peop
45:29
Speaker 1: any of these be aubiquitous, right, and jokes on me,
45:33
Speaker 1: it's fair, totally totally get it, you know, for being
45:37
Speaker 1: too well meaning, or any of those for not doing
45:39
Speaker 1: more investigation. But you know, honestly, people do deserve to know.
45:42
Speaker 1: And the fact is is that all of the quotes
45:45
Speaker 1: that I read from the money and the percent wise
45:48
Speaker 1: comes from the chief operating officers testimony before the State
45:53
Speaker 1: of California, who the judge herself described as strikingly candid
45:58
Speaker 1: whenever it came out. The only question is about whether
46:02
Speaker 1: any of this is going to be applied in the future.
46:05
Speaker 1: And if anybody from the White House, you know, they're
46:07
Speaker 1: very upset about fraud and all that, I welcome your
46:10
Speaker 1: interests in this particular. I am not in any way
46:14
Speaker 1: alleging fraud. I'm just saying, you know, based upon what.
46:17
Speaker 3: Was well, I mean they were found in trial, you know.
46:19
Speaker 1: Well, no, no, they weren't found guilty. As if they
46:21
Speaker 1: have to repay, they just have to amend their advertise.
46:24
Speaker 3: Their averting.
46:25
Speaker 2: Their averages were banned in California based on a court decision.
46:29
Speaker 2: I wonder if other states are also going to follow suit,
46:32
Speaker 2: because I know, yeah, I mean when I lived in
46:34
Speaker 2: New York, I saw these things more than anywhere. Makes
46:36
Speaker 2: sense since it's a New Jersey organization, so it's right.
46:39
Speaker 2: There had a couple of updates speaking of trips to
46:42
Speaker 2: Israel and all of these sorts of things. I have
46:44
Speaker 2: a couple of updates with regard to Iszra. But E
46:46
Speaker 2: six up on the screen, there's a report from Harats.
46:49
Speaker 2: By the way, the ICC is disputing this. But there's
46:52
Speaker 2: a report from Harats that the ICC prosecutors seeking warrants
46:56
Speaker 2: for the arrest of Ben Giverer, Simochrich and several other
47:00
Speaker 2: there Israeli officials for war crimes. So, like I said,
47:04
Speaker 2: the ICC is denying this report. Previously, warrants had been
47:09
Speaker 2: issued for the rest of several other officials, including Net
47:13
Speaker 2: and Yahoo. I believe it was Net Yaho and Yoav Gallant,
47:16
Speaker 2: for whom arrest warrants have already been issued, so we'll
47:19
Speaker 2: follow this and see what comes of that, but also
47:22
Speaker 2: wanted to make sure to highlight and make sure it
47:24
Speaker 2: doesn't fall out of the news. What's going on in
47:27
Speaker 2: Gaza right now. We told you before. First of all,
47:29
Speaker 2: the ceasefire was completely bunked. Their continue to strike and
47:32
Speaker 2: kill Palestinians within Gaza. The Israelis have taken control of
47:37
Speaker 2: much more of the Gaza strip than they were supposed
47:40
Speaker 2: to in accordance with the ceasefire plan. The idea that
47:44
Speaker 2: you know, you'd start with a phase one and you'd
47:46
Speaker 2: move to a phase two, which included reconstruction, and you know,
47:49
Speaker 2: some governance apparatus, et cetera that has never come to fruition,
47:52
Speaker 2: and I think it was never intended to come to fruition,
47:55
Speaker 2: and instead you have this just horrific limbo where people
48:00
Speaker 2: in Gaza are still living in objectly horrific unsanitary conditions,
48:06
Speaker 2: suffering gravely, you know, inadequate food, inadequate medical care. The
48:11
Speaker 2: sanitary conditions are horrifying, rats, infestations, just everything terrible that
48:16
Speaker 2: you can imagine. And Natyahu went out and was bragging
48:19
Speaker 2: about how much of the Gaza Strip the Israelis now control,
48:23
Speaker 2: and saying, and we'll see what happens next today at
48:25
Speaker 2: sixty percent, tomorrow, we'll see. Let's take a look at this,
48:29
Speaker 2: so he said, and I quote, we returned all our
48:32
Speaker 2: hostages to the last one of them. And we did
48:34
Speaker 2: this without giving back territories. Did you hear we returned
48:38
Speaker 2: all our hostages. There were those who said leave, go outside.
48:41
Speaker 2: We did not go outside. Today we control how much
48:44
Speaker 2: sixty percent of the strip? Tomorrow we will see tomorrow
48:48
Speaker 2: we will see so just overtly bragging about annexing the
48:53
Speaker 2: Gaza Strip, you know, I mean, the idea that there
48:57
Speaker 2: was going to be some like great resolution here and
48:59
Speaker 2: it was going to be amazing was always quite fraudulent.
49:02
Speaker 2: And now he's just happy to brag about the fact
49:04
Speaker 2: that they are completely annexing this territory at this point.
49:07
Speaker 1: Yeah. And by the way, everyone will be interested to
49:10
Speaker 1: know Natanya, who's corruption trial was cut short his testimony
49:13
Speaker 1: again today for the second time in a row because
49:16
Speaker 1: of diplomatic and security reasons. So I just wanted to
49:19
Speaker 1: make sure everybody was aware of that, Well, that's happening,
49:22
Speaker 1: and for why maybe that war might need to resume
49:25
Speaker 1: sometime soon if that testimony and trial continues, which just
49:29
Speaker 1: happens to very conveniently get delayed for national security reasons
49:32
Speaker 1: all the time. In addition to now having literally what
49:35
Speaker 1: is it, a thousand new kilometers of Gaza and now
49:37
Speaker 1: this new expulsion of a significant part of the West
49:40
Speaker 1: Bank which has nothing part to do with Gaza. That's
49:44
Speaker 1: where we are, all right, we have Chris Rab standing
49:46
Speaker 1: by let's get to it.
49:48
Speaker 2: Looks like State Representative Chris Rab had a scheduling snafuo today.
49:51
Speaker 2: Busy day, election day, so understandable. We'll be following the
49:55
Speaker 2: results closed lead tonight and Ryan and Emily will.
49:57
Speaker 3: Cover it that and so much more Tomorrow. We will
49:59
Speaker 3: see that
50:01
Speaker 4: You wanted to ta