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Bonds; Gerontocracy; Canada; Iran; Ukraine; DSA; Nvidia; Achievement | Yaron Brook Show · Yaron Brook Show

• 0:02
  Speaker 1: A lot of them funnsal Cellist and an individual wats
• 0:14
  Speaker 1: this is the Russia? Oh right? Everybody, Welcome to your
• 0:21
  Speaker 1: one book show on this Monday, August twenty fourth. I
• 0:26
  Speaker 1: hope everybody had a good weekend. I hope you enjoyed
• 0:30
  Speaker 1: my show yesterday with with Nikos. Those are always fun.
• 0:35
  Speaker 1: I encourage you to go back and and listen to
• 0:38
  Speaker 1: it if you haven't listened to it yet. It was
• 0:40
  Speaker 1: we talked about Patrick Deneen, who is really one of
• 0:43
  Speaker 1: the real intellectuals behind the new rights, the JD Vance
• 0:49
  Speaker 1: kind of new right and national Conservatives partially but but
• 0:55
  Speaker 1: but generally kind of the new right phenomena. So check
• 0:58
  Speaker 1: him out. Check check out the show from yesterday and
• 1:01
  Speaker 1: then Friday, the show was on part of my series
• 1:08
  Speaker 1: on the Capitalism's Criticus Critics and it was on the
• 1:14
  Speaker 1: Stanford the New Stanford Entry Stanford Encyclopedia, Philosophy, Entry and Capitalism,
• 1:20
  Speaker 1: which was written by a dedicated anti capitalist, which was
• 1:26
  Speaker 1: which I think was interesting. So hopefully you'll go back
• 1:29
  Speaker 1: and listen to those if you haven't yet. All right,
• 1:33
  Speaker 1: let's jump into the news. And I know I kind
• 1:36
  Speaker 1: of hate doing this to you. I don't know what
• 1:38
  Speaker 1: your tolerance, guys is for finance, but this seems to
• 1:43
  Speaker 1: me still the most important story out there and one
• 1:46
  Speaker 1: that keeps evolving and in developing, and and I think
• 1:53
  Speaker 1: a kind of foreshadowing the real challenges that America and
• 1:59
  Speaker 1: then makeing economy be going to face over the next
• 2:01
  Speaker 1: few years. And that is really what is going on
• 2:04
  Speaker 1: in the bottom market and how Secretary Bestent, the Treasury
• 2:08
  Speaker 1: Secretary is responding to it. And I think it's really interesting.
• 2:13
  Speaker 1: I think I think it's it's fascinating what is going on.
• 2:16
  Speaker 1: So just to give you again some background over this,
• 2:22
  Speaker 1: think of it, think of it this way. Just give
• 2:23
  Speaker 1: you a little bit of history. Here. Five years ago,
• 2:28
  Speaker 1: just five years the yield on America's thirty year government bond,
• 2:33
  Speaker 1: that is, the return that you expected to get if
• 2:37
  Speaker 1: you bought a thirty year government bond, was below two percent,
• 2:43
  Speaker 1: below two percent. Now, five years ago, there was a
• 2:46
  Speaker 1: little bit of inflation, so basically your real rate of return,
• 2:50
  Speaker 1: after you adjust for inflation, your real rate of return
• 2:53
  Speaker 1: on a thirty year bond was basically zero, maybe a
• 2:57
  Speaker 1: little negative even, But in other words, it was very,
• 3:04
  Speaker 1: very very cheap for the government to borrow thirty thirty years,
• 3:09
  Speaker 1: all they had to pay was two percent interest on
• 3:11
  Speaker 1: what they were buying now. But a couple of weeks ago,
• 3:18
  Speaker 1: or yeah, a couple of weeks ago, when we just
• 3:22
  Speaker 1: before we crossed a forty trillion dollar in national debt,
• 3:28
  Speaker 1: the ten year debt sold at basically an interest rate,
• 3:36
  Speaker 1: and this is the benchmark. The tenure is what your
• 3:40
  Speaker 1: mortgage is related to, indirectly, your car loan. Basically all
• 3:48
  Speaker 1: consumer borrowing is attached in one way another. The directly
• 3:53
  Speaker 1: indirectly to the tenure bond. That interstrate was four point
• 3:58
  Speaker 1: six eight so way more than double, right below two
• 4:03
  Speaker 1: percent to four point six eight percent, and the thirty
• 4:06
  Speaker 1: year five years later when the government tried to sell,
• 4:10
  Speaker 1: when the government sold thirty year bonds, they had to
• 4:14
  Speaker 1: pay in a sense applied interest rate of five point
• 4:17
  Speaker 1: three one percent to sell those bonds, both of those
• 4:22
  Speaker 1: the highest day being since two thousand and seventy two
• 4:24
  Speaker 1: thousand and eight. So the cost of borrowing to the
• 4:28
  Speaker 1: US government has gone from less than two percent to
• 4:34
  Speaker 1: four point sixty eight in the case of ten years
• 4:36
  Speaker 1: five point three one in the case of thirty years.
• 4:39
  Speaker 1: That is a huge increase, and that directly affects the
• 4:45
  Speaker 1: growing deficit because it means that the interest that the
• 4:49
  Speaker 1: government is going to be paying is going to be
• 4:52
  Speaker 1: significantly higher way into the future than it has been
• 4:56
  Speaker 1: paying in the past, and that is reflected than the
• 5:00
  Speaker 1: fact that interest's expense interest expense as a as a
• 5:04
  Speaker 1: part of the US government spending. I think it's an
• 5:09
  Speaker 1: all time high, and it's above now one trillion dollars.
• 5:12
  Speaker 1: It's over a trillion dollars and heading towards two in
• 5:16
  Speaker 1: less than two in lesson ten years. So you've got
• 5:22
  Speaker 1: very very high relative to recent history, not relative to
• 5:27
  Speaker 1: nineteen eighties or the nineteen nineties of the nineteen seventies,
• 5:31
  Speaker 1: but relative to recent history, very high long term interest rates.
• 5:37
  Speaker 1: And look the short term rate, it's just a nun
• 5:41
  Speaker 1: a four percent, so it's not that low either. But
• 5:48
  Speaker 1: this became really wawishoim because Trump is trying to lower
• 5:54
  Speaker 1: your cost of living, he says, although every action he
• 5:58
  Speaker 1: takes does exactly that oposite. We'll talk about tariffs with
• 6:02
  Speaker 1: Canada in a minute, but he says he's trying to
• 6:05
  Speaker 1: lower your cost of living. The the you know, we've
• 6:10
  Speaker 1: got elections coming up in November for Congress, and the
• 6:14
  Speaker 1: Republicans look like they're going to take a real beating
• 6:17
  Speaker 1: because American people are very unhappy with the cost of living.
• 6:21
  Speaker 1: So the higher the interstate is, the more expensive cost
• 6:26
  Speaker 1: of living is, the more expensive your mortgages, the more
• 6:29
  Speaker 1: expensive of your call loan is, the more you're paying
• 6:32
  Speaker 1: on credit cards. If you're paying credit card interestrates on
• 6:34
  Speaker 1: your credit card, the more you're paying interest in your
• 6:37
  Speaker 1: credit card. Businesses, if they're borrowing money. Businesses are borrowing
• 6:41
  Speaker 1: money to engage in business expansion, or to build data
• 6:45
  Speaker 1: centers or whatever it is that they're doing. Interstates too
• 6:49
  Speaker 1: much higher, so their cost of business is higher. And
• 6:54
  Speaker 1: at the margin, a lot of projects are not going
• 6:56
  Speaker 1: to get funded because it's just too expensive. It's not
• 6:59
  Speaker 1: worth in asking in this project. If I have to
• 7:02
  Speaker 1: pay six seven, eight, nine, ten, eleven, twelve percent, who
• 7:05
  Speaker 1: knows what the interest rate payments they are paying, oh
• 7:08
  Speaker 1: to the bank for the money. So financing costs matter.
• 7:13
  Speaker 1: They matter to the economic growth, and they matter to
• 7:18
  Speaker 1: therefore to jobs, to economic well being, and of course
• 7:21
  Speaker 1: to the payments we all pay on the debts that
• 7:25
  Speaker 1: we take on. And of course the biggest again, the biggest,
• 7:28
  Speaker 1: the biggest debt that we take on is a mortgage,
• 7:31
  Speaker 1: and mortgage rates a high high high. Again, they're not
• 7:35
  Speaker 1: high relative to the seventies or the eighties or even
• 7:38
  Speaker 1: the nineties, but they're certainly high relative to five, ten,
• 7:42
  Speaker 1: fifteen years ago. And that's what people remember, and that's
• 7:48
  Speaker 1: what people feel. And we know that sentiments among Americans
• 7:54
  Speaker 1: is economic sentiment is very lowly and likely to hood
• 7:59
  Speaker 1: for publics. This in the selection anyway, So the gunment
• 8:04
  Speaker 1: decided that it was going. Now let's let's backtrack for
• 8:08
  Speaker 1: a second and consider why interest rates are so are
• 8:12
  Speaker 1: significantly higher, And there are a number of things. One
• 8:15
  Speaker 1: is the fear that inflation will actually increase more than
• 8:20
  Speaker 1: it has or maybe you know, if inflation is a
• 8:26
  Speaker 1: three percent and you know, so you've got a two
• 8:30
  Speaker 1: point six eight three percent for over ten years, you
• 8:34
  Speaker 1: expect inflation to average around three percent. And the bonds
• 8:37
  Speaker 1: are going for four point six eight. The real rate
• 8:39
  Speaker 1: interest rate is only one point six eight. So while
• 8:41
  Speaker 1: it's not negative, it's not zero. It's one point six eight.
• 8:45
  Speaker 1: That's higher than zero. But that's good. Zero is weird,
• 8:50
  Speaker 1: Zero is unnatural, Zero is distortive. So what happened actually
• 8:57
  Speaker 1: five years ago and ten years ago when interesting if
• 9:00
  Speaker 1: we're so low where you can get a thirty year
• 9:02
  Speaker 1: mortgage of three percent, that was crazy, that was unhealthy. Indeed,
• 9:08
  Speaker 1: I think it's causing a lot of the problems we're
• 9:09
  Speaker 1: seen today. And I think a lot of the government
• 9:14
  Speaker 1: borrowing was incentivized by the fact that, hey, we can
• 9:17
  Speaker 1: borrow two percent, why not borrow a two percent? Hey,
• 9:20
  Speaker 1: I would borrow a two percent if you offered me
• 9:22
  Speaker 1: loans at two percent, I'll take as much money as
• 9:25
  Speaker 1: you can give me. I don't care how much, because
• 9:30
  Speaker 1: I can invest it at a better return than two percent.
• 9:33
  Speaker 1: And the government felt the same way. They borrowed like
• 9:37
  Speaker 1: crazy back then. So maybe this is just going back
• 9:41
  Speaker 1: to normal, where interest rates are just going back to
• 9:44
  Speaker 1: normal and interestates going back to no because there's actually
• 9:47
  Speaker 1: a demand for capital right now, particularly to build data
• 9:50
  Speaker 1: centers and to invest in AI and the rockets to
• 9:54
  Speaker 1: mars maybe, but primarily data centers and AI. But you know,
• 10:02
  Speaker 1: these interest rates again, the government is not happy with them,
• 10:06
  Speaker 1: even though the reality is four point sixty eight for
• 10:08
  Speaker 1: ten years and five point three one for thirty years
• 10:11
  Speaker 1: and not that high given inflation at around three percent
• 10:17
  Speaker 1: an answer to that, To fact the way, forty four
• 10:20
  Speaker 1: zero trillion dollars of debt growing at about one point
• 10:27
  Speaker 1: nine trillion dollars a year forever. There's no plan, no intent,
• 10:38
  Speaker 1: no suggestion, no hint, no indication, nothing. The government will
• 10:46
  Speaker 1: ever stop running massive deficits. Indeed, quite the opposite. Nobody's
• 10:54
  Speaker 1: talking about the one thing they'll cut deficits, which is
• 10:57
  Speaker 1: cutting spending. Nobody is talking about that. Nobody cares. So
• 11:04
  Speaker 1: investors are legitimately saying, look, you know, you're running forty
• 11:10
  Speaker 1: trillion in debt, it's going to be sixty trillion not
• 11:12
  Speaker 1: you know in less than ten years, it's going to
• 11:15
  Speaker 1: be eighty trillion in lesson ten years after that. This
• 11:19
  Speaker 1: is unsustainable. And there's a real risk here that in
• 11:23
  Speaker 1: one way or the other, you won't pass back in
• 11:26
  Speaker 1: legit dollars. Probably you'll inflate the debt away. So we
• 11:33
  Speaker 1: want to be compensated. We were increasing interest rates. Why
• 11:36
  Speaker 1: would we buy US government bonds when the US government
• 11:39
  Speaker 1: is behaving so irresponsible. So the US goverment is worried
• 11:48
  Speaker 1: about this, and they decided that they're going to initiate
• 11:54
  Speaker 1: a process of dramatic spending cuts and you know, deficit
• 12:01
  Speaker 1: rejection activities to drive the US towards soap plus so
• 12:05
  Speaker 1: the US can start paying back its debt. Ummmmmm. No,
• 12:13
  Speaker 1: that's not what the US government is thinking of doing
• 12:15
  Speaker 1: at all. No, Instead, the US government is thinking, the
• 12:20
  Speaker 1: central planners of this Republican administration sitting back and thinking,
• 12:26
  Speaker 1: how can we manipulate the market. How can we manipulate
• 12:31
  Speaker 1: the market and drive interstates down? No, by convincing the
• 12:37
  Speaker 1: market the things are much better than they think they are. No, no, no,
• 12:40
  Speaker 1: by manipulating it. Well, that's what you know Treasury second
• 12:44
  Speaker 1: Day Bessett tried to do last week. He basically said
• 12:50
  Speaker 1: that he was going to start buying back buying US
• 12:56
  Speaker 1: long term bonds, thirty of bonds, Tenia bonds. Of course,
• 13:00
  Speaker 1: the fund that he doesn't ever you know, he has
• 13:02
  Speaker 1: the cash, but that cash is is going to be spent,
• 13:06
  Speaker 1: so he has that he has to raise money to
• 13:08
  Speaker 1: do this. He's going to issue short term bonds in
• 13:11
  Speaker 1: order to fund it. And you know, initially the market
• 13:17
  Speaker 1: didn't do anything. So then he says, instead of two
• 13:20
  Speaker 1: billion dollars, we're going to actually increase a billion dollars.
• 13:27
  Speaker 1: Uh and and to buy back this long term debt.
• 13:31
  Speaker 1: And of course, if there's a new buyer in the market,
• 13:33
  Speaker 1: demand goes up and price goes down, and and uh
• 13:38
  Speaker 1: and and prices. You know, a new buyer into the markets,
• 13:42
  Speaker 1: prices don't go down, they go up. Right, there's somebody
• 13:45
  Speaker 1: more bidding, which means interesting, it's go down. That's what
• 13:47
  Speaker 1: they're trying. The effect they're trying to achieve. So the buybacks,
• 13:52
  Speaker 1: I'm into kind of ease trading in older in these
• 13:55
  Speaker 1: older bonds by putting some longer dated debt out of
• 13:59
  Speaker 1: the market and nudge interstrates lower. So when he announced this, indeed,
• 14:09
  Speaker 1: the interest rates dipped a little bit. The thirty year
• 14:11
  Speaker 1: and the ten year went down a little bit because
• 14:15
  Speaker 1: everybody says, oh, he's going to be buying bonds. I mean,
• 14:18
  Speaker 1: splice of bonds will go up, interstates go down. You know,
• 14:21
  Speaker 1: might as well go in there and take advantage of this.
• 14:25
  Speaker 1: But by the end of the week, everybody was going,
• 14:28
  Speaker 1: he can't do much of it. Two billion dollars just
• 14:31
  Speaker 1: to give you a sense, Actually, let me see if
• 14:34
  Speaker 1: I can find this. I took a look at how
• 14:37
  Speaker 1: big these markets are. So the ten year, the ten
• 14:41
  Speaker 1: year nodes have an outstanding principal value a four point
• 14:45
  Speaker 1: three eight trillion dollars. The estimated market values is about
• 14:49
  Speaker 1: four point one trillion dollars. The thirty year has an
• 14:54
  Speaker 1: outstanding principal value of four billion, four trillion for trillion,
• 14:58
  Speaker 1: not billions to trillion, with a market value about three
• 15:02
  Speaker 1: point two one trillion. So total of principle of eight
• 15:08
  Speaker 1: point five five trillion and market value of seven point
• 15:11
  Speaker 1: three one trilion, so the market value is about seven
• 15:13
  Speaker 1: point five trillion dollars. Two billion, four billion dollars is
• 15:17
  Speaker 1: not going to have any impact. It's not going to
• 15:19
  Speaker 1: do anything. And basically, by the end of the week
• 15:23
  Speaker 1: after they announced this, yields went back up to where
• 15:28
  Speaker 1: they were before. So it had no impact, nothing right
• 15:33
  Speaker 1: or that. You know, the ten year went back to
• 15:35
  Speaker 1: four point seven a buffalo seven. The thirty year went
• 15:37
  Speaker 1: back to four point two eight. You know this it
• 15:46
  Speaker 1: was funny. It was really funny. I mean, I think
• 15:50
  Speaker 1: it's funny. It's probably sad, but it's funny because because
• 15:55
  Speaker 1: Donald Trump was asked on Friday, I've got the video
• 15:57
  Speaker 1: of this. I was going to show you, but I didn't.
• 16:00
  Speaker 1: I didn't set it up in time anyway. Donald Trump
• 16:02
  Speaker 1: was asked outside of the White House what he thought
• 16:04
  Speaker 1: of all this and what he thought of Besset and
• 16:06
  Speaker 1: his attempt at with Donald Trump guiding this said, no, no,
• 16:09
  Speaker 1: this is best it's doing. He's really good. He said,
• 16:12
  Speaker 1: he has a good touch. He's very good. He's got
• 16:14
  Speaker 1: a natural touch for bonds and interest and he's going
• 16:17
  Speaker 1: to get it done. He's going to get that interest
• 16:19
  Speaker 1: rate down. And then this is the funny, sad part.
• 16:24
  Speaker 1: And then he was asked about further interventions. And this
• 16:28
  Speaker 1: is why I think he had a you know, little
• 16:32
  Speaker 1: eighty eighty eighty year old moment. He basically says, and
• 16:38
  Speaker 1: this direct quote, many types of interventions and the ultimate intervention.
• 16:44
  Speaker 1: The ultimate intervention is our military, and if we have
• 16:47
  Speaker 1: to use that, we will. And I'm going like, oh,
• 16:54
  Speaker 1: we're gonna have troops in Wall Street pointing guns at
• 16:58
  Speaker 1: bonn you know, at is and sellers a bonce and
• 17:02
  Speaker 1: dictating interest rates at the point of a gun. I mean,
• 17:07
  Speaker 1: maybe that's what Donald Trump meant, But what I actually
• 17:13
  Speaker 1: think is that in his mind, whatever is left of it,
• 17:17
  Speaker 1: he confuse this intervention with Ewan and he was like,
• 17:24
  Speaker 1: you know, we're going to do all these economic sanctions
• 17:26
  Speaker 1: that we'll talk about that in a minute. But in
• 17:28
  Speaker 1: the end, we could use our military. But he confused
• 17:30
  Speaker 1: the bond market with ian. He couldn't hold the bond market,
• 17:34
  Speaker 1: and he was gonna, he basically said on television, and
• 17:37
  Speaker 1: he never attracted this, that we're going to the ultimate
• 17:39
  Speaker 1: intervention is a military and if we have to use that,
• 17:44
  Speaker 1: we will when he was asked about the bond market. Now,
• 17:49
  Speaker 1: I don't know if you viewed that as funny or
• 17:51
  Speaker 1: sad or both, or maybe just damn scary. It could
• 17:55
  Speaker 1: be just damn scary. It's probably just damn scary. But anyway,
• 18:04
  Speaker 1: as aggressive as best it is in getting inter strates down,
• 18:08
  Speaker 1: I don't think we're quite at the point of sending in,
• 18:13
  Speaker 1: of sending in the troops, sending in the troops anyway.
• 18:19
  Speaker 1: So going from two billion to four billion, everybody said,
• 18:24
  Speaker 1: that's just it's peanuts. It's we're talking about eight seventy
• 18:27
  Speaker 1: eight trillion dollar market. There's nothing, nothing's going to happen there.
• 18:32
  Speaker 1: So today rumors were rumors were the defense that the
• 18:38
  Speaker 1: Treasury was willing to spend all the cash it has
• 18:44
  Speaker 1: to buy back these ten to thirty year bonds, and
• 18:51
  Speaker 1: then it's almost the trillion dollars. Now it's a rumor,
• 18:55
  Speaker 1: nobody actually knows. But that's kind of an act of desperation.
• 19:03
  Speaker 1: And of course they have to issue a trillion dollars
• 19:06
  Speaker 1: of debt in the short term market in order to
• 19:10
  Speaker 1: fund that. There's no free money, there's no money coming
• 19:12
  Speaker 1: out of nowhere, one way another. They have to raise
• 19:15
  Speaker 1: that money. I mean, no intervention can reduce the underlying
• 19:20
  Speaker 1: supply of debt. They're not printing money, not yet, right.
• 19:26
  Speaker 1: Putting money would be inflationary. This is not putting money.
• 19:29
  Speaker 1: This is just shifting money from one pocket to another.
• 19:31
  Speaker 1: It's trying to manipulate what's called the yield curve, the
• 19:35
  Speaker 1: interest rates at different points in time. It's statist government
• 19:44
  Speaker 1: intervention in an attempt to manipulate markets. But here's the thing.
• 19:54
  Speaker 1: Even at a trillion dollars, is that going to change
• 19:58
  Speaker 1: the underlying fundamental of pricing these bonds? Is that gonna
• 20:02
  Speaker 1: change the risk that you never get paid back? Is
• 20:06
  Speaker 1: that gonna change anything? You know? You know, it might
• 20:09
  Speaker 1: lower the short term cost of borrowing for the US
• 20:12
  Speaker 1: government because short term bonds have a lower interest rates.
• 20:15
  Speaker 1: The long term bonds, but it doesn't change the fundamentals.
• 20:19
  Speaker 1: It's not gonna change the ten year yield or the
• 20:22
  Speaker 1: thirty year yield over the long run. It might change it.
• 20:25
  Speaker 1: When this flurry of demand from the Treasury comes in
• 20:30
  Speaker 1: and buys up a bunch of bonds, yields might go down.
• 20:33
  Speaker 1: But then as soon as they stop buying, and at some
• 20:35
  Speaker 1: point they have to stop buying, yields will jump back up.
• 20:39
  Speaker 1: The fact is that people are worried about the US
• 20:41
  Speaker 1: being able to repay its stabs. Interesting strategy is today
• 20:49
  Speaker 1: from Gomar Saxon, West Fogo, another in Wall Street from
• 20:53
  Speaker 1: said US Treasury departments. Bond buy back will do little
• 20:56
  Speaker 1: to reverse the jump in long term yields because the
• 20:59
  Speaker 1: jump in long term yields is based on reality. And
• 21:05
  Speaker 1: what the what the what Bessett is trying to do
• 21:08
  Speaker 1: by manipulating the martage is financial trickery. It's not based
• 21:14
  Speaker 1: on reality, it's not based on anything. It's just shifting
• 21:17
  Speaker 1: money from one pocket to another. It hasn't changed any
• 21:20
  Speaker 1: of the fundamentals of the US economy on which the
• 21:23
  Speaker 1: pricing of the ten and third the year bonds is based.
• 21:32
  Speaker 1: I mean again, this is a Republican administration supposedly pro markets.
• 21:40
  Speaker 1: This is about as the anti market as it gets.
• 21:42
  Speaker 1: I I, Treasury Secretary Bessett, know what interest rates should be.
• 21:49
  Speaker 1: I don't like where they are today, so I'm going
• 21:52
  Speaker 1: to try to manipulate using the vast resources of the
• 21:57
  Speaker 1: Treasury Department. I mean, this is central planning, one on one.
• 22:00
  Speaker 1: I mean it's enough, It's bad enough we have a
• 22:03
  Speaker 1: Federal Reserve that is constantly trying to manipulate interest rates
• 22:08
  Speaker 1: and manipulate money and inflate and now we have the
• 22:13
  Speaker 1: Treasury Department with the same kind of arrogant stupidity. I mean,
• 22:20
  Speaker 1: haven't they read their hiek and they you know, just
• 22:23
  Speaker 1: the meases and and the problem of of how do
• 22:27
  Speaker 1: you know what interest it should be? In what way
• 22:30
  Speaker 1: are you better than the market at figuring out what
• 22:32
  Speaker 1: interest rates should be? Well you're not, obviously. It's it's
• 22:41
  Speaker 1: it's so arrogant and stupid. I mean, the best did
• 22:45
  Speaker 1: the same thing with the Japanese. Yet he basically is
• 22:51
  Speaker 1: lending dollars to the Japanese so the Japanese can use
• 22:57
  Speaker 1: those dollars to buy in to prop up the price
• 23:03
  Speaker 1: of yen versus the dollar, and then we blame the
• 23:06
  Speaker 1: Chinese for comments manipulation, where we're doing exactly that. We're
• 23:11
  Speaker 1: manipulating our interest rates, we're manipulating the yen, and the
• 23:15
  Speaker 1: federal reserves manipulating the dollar. All the time. This Passon
• 23:22
  Speaker 1: is acting he's Treasury Secretary, and he's acting like he's
• 23:25
  Speaker 1: a hedge fund manager. And he wasn't a very good
• 23:29
  Speaker 1: edge fund manager. From what I understand. He worked for
• 23:32
  Speaker 1: so US and then but when he left soa US,
• 23:34
  Speaker 1: like you worked for soa US, George so Us actual
• 23:39
  Speaker 1: George sous right, the go funds, all leftist activities. Bessett
• 23:43
  Speaker 1: made his money with Joe sous Then he left saw
• 23:46
  Speaker 1: US and he started his own hedge fund, and from
• 23:48
  Speaker 1: everything I've read, he was a failure at that. So
• 23:55
  Speaker 1: now he thinks he knows better than the market. He
• 24:00
  Speaker 1: Treasury sectories to think they know better than the market.
• 24:03
  Speaker 1: Here's best At talking a few days ago. We believe
• 24:08
  Speaker 1: that there are many underlying factors in turn that the
• 24:10
  Speaker 1: market is not looking at.
• 24:12
  Speaker 2: Oh yeah, the market doesn't see stuff that you smart
• 24:16
  Speaker 2: best at do see.
• 24:25
  Speaker 1: Anyway, it doesn't look good. And the fact that we
• 24:29
  Speaker 1: have somebody like Best at running things. A guy who
• 24:33
  Speaker 1: thinks he knows better than the market does not bode
• 24:36
  Speaker 1: well for the US economy. You know, when Trump nominated
• 24:42
  Speaker 1: best at originally there were a lot of people who
• 24:44
  Speaker 1: thought he was going to be the adult in the room.
• 24:47
  Speaker 1: He's not. He's not the adult in the room. He
• 24:51
  Speaker 1: is a little central planner who has an arrogant and
• 24:56
  Speaker 1: arrogance about him that is unjustified by his non knowledge
• 25:01
  Speaker 1: or his actions. If you want to cut you want
• 25:06
  Speaker 1: to cut interestates, you want to lower interest rates, particularly
• 25:08
  Speaker 1: long term interest rates, There's one way to do it,
• 25:11
  Speaker 1: and that is to be an adult. That is to
• 25:15
  Speaker 1: realize the real problems that we face in the world
• 25:20
  Speaker 1: and to start talking to American people about cutting government spending,
• 25:25
  Speaker 1: cutting government spending. And look, if you're thinking about investing
• 25:32
  Speaker 1: in bonds, this competition, this real competition right now. You know,
• 25:45
  Speaker 1: lots of private equity funds and lots of real estate
• 25:48
  Speaker 1: funds are raising huge amounts of money to build AI infrastructure.
• 25:55
  Speaker 1: Investment grade companies these are companies that are low risk lowers,
• 26:01
  Speaker 1: not quite as low as the government, but low risk.
• 26:03
  Speaker 1: Investment great companies have sold nearly one point five trillion
• 26:08
  Speaker 1: in bonds this year. That's a thirty six percent increase
• 26:11
  Speaker 1: for twenty twenty five. And you know, the big tech companies,
• 26:18
  Speaker 1: it is two hundred billion, but a lot of the
• 26:21
  Speaker 1: rest is money to support the big tech intos AIA infrastructure.
• 26:30
  Speaker 1: And you know, the reality is, here's here's the here's
• 26:36
  Speaker 1: the reality. The difficult part of this if we hit
• 26:43
  Speaker 1: a bad economic patch and I'm saying hitting as if
• 26:46
  Speaker 1: it just happens by accident, but if something happens that
• 26:50
  Speaker 1: caused us to go into a recession or worse, some
• 26:53
  Speaker 1: kind of financial crisis, the government is going to have
• 26:58
  Speaker 1: and the government will want to bail everybody out that
• 27:01
  Speaker 1: wants stimulate the economy. They want to pour money in,
• 27:04
  Speaker 1: and arguably pouring money in is how they caused us
• 27:09
  Speaker 1: not to feel the pain of lockdowns, at least the
• 27:11
  Speaker 1: financial pain of lockdowns during COVID. But imagine where COVID now.
• 27:16
  Speaker 1: And they wanted to, you know, give us two trillion
• 27:19
  Speaker 1: dollars to make us feel better. They can't borrow two
• 27:23
  Speaker 1: trillion dollars. Nobody's gonna Nobody is gonna give you additional
• 27:27
  Speaker 1: two trillion on top of this, and if you did,
• 27:30
  Speaker 1: Interstates would shoot up or during the financial questions when
• 27:35
  Speaker 1: they wanted to bail out the banks and they borrowed
• 27:38
  Speaker 1: seven hundred billion dollars. How would they do that now?
• 27:43
  Speaker 1: I mean, so they probably will try, and by doing it,
• 27:47
  Speaker 1: they will drive interstates even higher, or I don't know,
• 27:52
  Speaker 1: they'd announced martial law and force investors to fund all this.
• 27:59
  Speaker 1: This is no money out there, not the kind of
• 28:02
  Speaker 1: money the US government is spending. This just doesn't exist.
• 28:06
  Speaker 1: And people are becoming more and more reluctant to actually
• 28:11
  Speaker 1: fund the US government given given how much the US
• 28:15
  Speaker 1: government is spending. So yeah, I wouldn't be a buyer
• 28:21
  Speaker 1: of US bonds at these prices. I don't think even
• 28:26
  Speaker 1: though they look cheap relative to five years ago, they
• 28:29
  Speaker 1: could get a lot cheaper before we're done in the cycle.
• 28:33
  Speaker 1: And you know, the reality is the US government is
• 28:35
  Speaker 1: going to have very little flexibility, very little flexibility if
• 28:40
  Speaker 1: we get into a crisis, and maybe that's a good thing.
• 28:48
  Speaker 1: Maybe they won't be able to do anything and a
• 28:50
  Speaker 1: crisis will actually be rehabilitative maybe, or maybe we think
• 28:57
  Speaker 1: into a great depression. Who knows what they do, but
• 29:01
  Speaker 1: I can tell you with forty trillions of debt and
• 29:05
  Speaker 1: interest rate costs of a one trillion, and the kind
• 29:08
  Speaker 1: of projection which we'll get to in a minute of
• 29:10
  Speaker 1: expenses looking out ten twenty three years. This economy is
• 29:16
  Speaker 1: in trouble. The whole West is in trouble. The whole
• 29:19
  Speaker 1: West is in trouble. So anyway, we've got a central
• 29:21
  Speaker 1: planner in charge, and it's not good. It's not good.
• 29:28
  Speaker 3: And so one of the solutions that people are presenting
• 29:37
  Speaker 3: right in our political, crazy political world that we live in,
• 29:41
  Speaker 3: is the solution to the economic challenges that we face.
• 29:46
  Speaker 1: Is we are told socialism. What we need, really, you know,
• 29:51
  Speaker 1: solve our economic problems is a big wealth tax on
• 29:56
  Speaker 1: the rich and higher income taxes and more government spending.
• 30:04
  Speaker 1: But here's the thing that's just in terms of the math,
• 30:09
  Speaker 1: put aside the morality of it all, that just doesn't compute.
• 30:17
  Speaker 1: There's just not enough wealth out there to tax to
• 30:22
  Speaker 1: sustain the kind of economic programs the Democratic Socialists of
• 30:27
  Speaker 1: America and the Democratic Party one to institute. Socialism is
• 30:32
  Speaker 1: unbelievably expensive. I'll say that again. Socialism is unbelievably expensive,
• 30:39
  Speaker 1: and we just don't have the money. We don't, particularly
• 30:43
  Speaker 1: if you consider what will happen to the economy. If
• 30:45
  Speaker 1: you aise wealth taxes and income taxes, and how much
• 30:48
  Speaker 1: slower economic growth will be, maybe there won't be any
• 30:51
  Speaker 1: economic growth. And the fact is we can't fund the programs.
• 30:59
  Speaker 1: We have no out. Never mind all the the whole
• 31:04
  Speaker 1: wish list of Democratic Socialists or other people in Democratic
• 31:09
  Speaker 1: Party or for them at a jed Vans. We can't
• 31:12
  Speaker 1: fund jed Evans as wish list. We can't fund the
• 31:16
  Speaker 1: Democratic Party's wish list. There's just no money. I don't
• 31:22
  Speaker 1: care how high tax rates go. I just can't get it.
• 31:27
  Speaker 1: I mean, maybe you could fund. Maybe you can have
• 31:28
  Speaker 1: a wealth tax of bazillion is and you fund, you know,
• 31:32
  Speaker 1: a faction of a year. But you're not gonna tax.
• 31:36
  Speaker 1: You're not gonna get brillions and trillions and trillions of
• 31:38
  Speaker 1: dollars through taxes. It's just not happening. The reality is
• 31:44
  Speaker 1: that oh government is dedicated to redistribution of wealth on
• 31:52
  Speaker 1: a massive scale. And this is true throughout the West,
• 31:55
  Speaker 1: but in the United States in particular. And that redistribution
• 32:00
  Speaker 1: wealth is not from rich to poor, it's not from
• 32:03
  Speaker 1: middle class to poor. It's not from rich to middle class.
• 32:07
  Speaker 1: That redistribution of wealth is primarily from young to old.
• 32:14
  Speaker 1: That's what we spend our money on. We spend our
• 32:17
  Speaker 1: money on old people, I mean, including myself in that category.
• 32:23
  Speaker 1: Because you know, a bigger and bigger and bigger and
• 32:27
  Speaker 1: bigger and bigger chunk of all spending is healthcare programs,
• 32:32
  Speaker 1: primarily for the old, Medicare and so security, I mean,
• 32:38
  Speaker 1: that dominates everything. All the rest of the spending is
• 32:42
  Speaker 1: penny change, particularly you know right now, you know, over
• 32:48
  Speaker 1: the next ten twenty years, particularly over the next ten years,
• 32:51
  Speaker 1: interest payments on the debt are becoming a bigger and
• 32:53
  Speaker 1: bigger and being a bigger, I mean dramatically bigger expense.
• 32:57
  Speaker 1: But if you look at defense spending, non defense discretionary
• 33:02
  Speaker 1: other mandatory veterans programs, yeah, all of them are increasing,
• 33:06
  Speaker 1: but very little, very little, not a lot of increased
• 33:10
  Speaker 1: spending in those kind of programs and teams. And it
• 33:12
  Speaker 1: doesn't percentage of GDP the barely increasing, but so security
• 33:18
  Speaker 1: way up. Other federal healthcare, primarily Medicare but also Medicaid
• 33:24
  Speaker 1: way interest on the debt where I put a side
• 33:28
  Speaker 1: interest on the debt, I mean, but even interest on
• 33:31
  Speaker 1: the debt right it is a way not to tax
• 33:35
  Speaker 1: people now, now, who benefits from not having being taxed?
• 33:38
  Speaker 1: Now old people. By the time you have to pay
• 33:41
  Speaker 1: with all this debt, it's young people. Now let me
• 33:45
  Speaker 1: let me correct that old people don't really benefit, because
• 33:50
  Speaker 1: old people would be much better off in a capitalist economy,
• 33:57
  Speaker 1: in a in a in a free market, in a
• 33:59
  Speaker 1: much smaller government where the econo economic growth was dramatically higher.
• 34:05
  Speaker 1: But in terms of short term benefits, in terms are
• 34:07
  Speaker 1: the kind of benefits that you know, most people think of,
• 34:11
  Speaker 1: you know, the immediate, short term, you know, unthinking benefits. Yeah,
• 34:16
  Speaker 1: old people and old people would be better off front
• 34:20
  Speaker 1: the capitalism, but right now they are milking young people.
• 34:25
  Speaker 1: Young people the ones are going to pay taxes. They
• 34:28
  Speaker 1: pay taxes now, They're gonna pay taxes as they enter
• 34:32
  Speaker 1: their more productive years. Their taxes are only going to
• 34:35
  Speaker 1: go up. They cannot go down because spending is only
• 34:39
  Speaker 1: going up, and that spending is only going up because
• 34:44
  Speaker 1: of social security and medicate. And here's the shocking thing
• 34:51
  Speaker 1: about it, nobody seems to care. Old people certainly don't
• 34:55
  Speaker 1: care because they're the beneficiaries. You think they feel a little,
• 35:01
  Speaker 1: but you know, their argument is, we pay taxes, but
• 35:04
  Speaker 1: you never paid taxes to justify this, like your Social
• 35:07
  Speaker 1: Security that you paid taxes has already been paid out,
• 35:10
  Speaker 1: paid out a long time ago. When you paid, it
• 35:12
  Speaker 1: went right out the trust funds that was built up.
• 35:16
  Speaker 1: It's all gone, so very soon you're going to be
• 35:21
  Speaker 1: taking it straight from taxes. In a sense, you already
• 35:25
  Speaker 1: are because it's already all being paid out Medicare. Medicare
• 35:30
  Speaker 1: old people spend very dollar they paid in taxes, they
• 35:34
  Speaker 1: get back full. Social Security is a bad saving plan.
• 35:38
  Speaker 1: It's it's very low rate of return as a saving plan.
• 35:41
  Speaker 1: But Medicare it's like one of the best deals in
• 35:43
  Speaker 1: all of human history. You pay about one dollar fifty
• 35:47
  Speaker 1: four that you take out, and most of the money
• 35:50
  Speaker 1: that old people take out of Medicaire they take out
• 35:52
  Speaker 1: in the last six months of their lives. It's very, very,
• 35:59
  Speaker 1: very expensive to drag out death. White people do it.
• 36:06
  Speaker 1: I do not know, but it's very expensive, and that's
• 36:10
  Speaker 1: when they spend their money and they do it again.
• 36:14
  Speaker 1: Where's that money coming from. It's coming directly from tax revenue.
• 36:17
  Speaker 1: There's no other place for it to come. There's no
• 36:20
  Speaker 1: saving account, there's no reserve fund. The same with Social Security.
• 36:24
  Speaker 1: All the money comes in from Social Security and goes out.
• 36:27
  Speaker 1: And today there's less money coming in and goes out.
• 36:30
  Speaker 1: So the gap that's taxpayer money. So and look, the
• 36:39
  Speaker 1: politics of the sea are simple. There were a lot
• 36:42
  Speaker 1: of old people. Baby boom generation is big, and old
• 36:46
  Speaker 1: people vote. Old people are politically active. One of the
• 36:50
  Speaker 1: things that shocked me about the Tea Party was how
• 36:53
  Speaker 1: old it was. When you go to conferences of like
• 36:58
  Speaker 1: activists political act of us, particularly on the right. The
• 37:01
  Speaker 1: old young people don't get that involved in politics, are
• 37:05
  Speaker 1: busy living, raising families, having a career, working really really hard.
• 37:11
  Speaker 1: They don't have time to do all the stuff these
• 37:14
  Speaker 1: activists do. It's old people. So old people ultimately say
• 37:18
  Speaker 1: that gender. Look at the Senates in the House, it's
• 37:21
  Speaker 1: so like a geriatric board of a hospital. I mean
• 37:24
  Speaker 1: senators and Congressmen are falling down dead left and right,
• 37:27
  Speaker 1: and a bunch of them are in their eighties and nineties.
• 37:31
  Speaker 1: I mean, we have a termulament, you know, I think
• 37:36
  Speaker 1: on our voted directors at the Institute of eighty years,
• 37:40
  Speaker 1: because after eighty, you know, even in the best of shape,
• 37:44
  Speaker 1: cognition starts to fade. But we're fine with our president
• 37:50
  Speaker 1: being eighty and our congressional leaders being eighty plus and
• 37:55
  Speaker 1: our congressman sometimes being ninety plus, and our sentences being
• 37:58
  Speaker 1: ninety plus fine, being run by people who can barely
• 38:02
  Speaker 1: manage to walk up a flight of stairs. It's unbelievably shocking,
• 38:08
  Speaker 1: unbelievably shocking. And what are old people mostly incentivized to do?
• 38:14
  Speaker 1: Status quo? Status quo and make sure that the people
• 38:20
  Speaker 1: who voted for them other old people keep voting for them,
• 38:24
  Speaker 1: which means not to not eliminate the security. And again
• 38:30
  Speaker 1: this is not you know, if you've removed the paywall
• 38:36
  Speaker 1: cap and so security. For example, you know, so people
• 38:41
  Speaker 1: earning above one hundred and eighty four thousand, five hundred dollars,
• 38:44
  Speaker 1: the money above that would be taxed at two point
• 38:48
  Speaker 1: four percent. Right between employer and employee, there'd be twelve
• 38:56
  Speaker 1: point four percent of all that amount of money. He
• 39:01
  Speaker 1: already gets about half or two thirds of the windfall
• 39:04
  Speaker 1: for social security. It's like you still don't make it up,
• 39:10
  Speaker 1: all make it up. And of course you're texting people,
• 39:14
  Speaker 1: so there's less money going into productive activities. The economy
• 39:19
  Speaker 1: goes even slower. It's you can't text us who are
• 39:25
  Speaker 1: way out of this. You know, we we on all
• 39:30
  Speaker 1: on all the federal budget, we spend more money than
• 39:32
  Speaker 1: we take in. Spending on entinements is just skyrocketing. It's
• 39:37
  Speaker 1: in the process of sky rocketing. And these programs, many
• 39:43
  Speaker 1: cancil security, are unbelievably popular, the most popular things in
• 39:48
  Speaker 1: government today. So nobody did mentioned reforming, you know, and
• 40:00
  Speaker 1: you could raise taxes, right, we could raise taxes on
• 40:07
  Speaker 1: the super rich, but that's not enough money. It's just
• 40:12
  Speaker 1: not enough money. Now. The only way to really raise
• 40:15
  Speaker 1: taxes and become like Europe it's raised taxes on the
• 40:18
  Speaker 1: middle class, which is what American politicians are so afraid
• 40:21
  Speaker 1: of doing. But all that means is Americans would raise
• 40:27
  Speaker 1: taxes on the middle class so that we could pay
• 40:33
  Speaker 1: what we promised to pay, what we're committed to paying already,
• 40:40
  Speaker 1: So we borrow a little less. But it doesn't solve
• 40:44
  Speaker 1: the problem. You just can't solve this problem with taxes.
• 40:49
  Speaker 1: So just the fund that the existing government would require
• 40:56
  Speaker 1: massive tax increases, and now you want a gazillion new programs,
• 41:04
  Speaker 1: more redistribution, more government involvement, more government taking over the economy.
• 41:10
  Speaker 1: It's never gonna happen. And politically, nobody will ever vote
• 41:13
  Speaker 1: for if you look at if you look at some
• 41:20
  Speaker 1: of their ideas, right, Medicare for all, Right, the ten
• 41:26
  Speaker 1: year federal cost of medica for all is more than
• 41:29
  Speaker 1: thirty three trillion dollars. That was a decade ago when
• 41:32
  Speaker 1: they did the calculation, so it's more like forty trillion
• 41:36
  Speaker 1: dollars today. Where's that com money going to come from?
• 41:41
  Speaker 1: Forty trillion dollars? That's over ten years of four additional
• 41:47
  Speaker 1: trillion every year. We're running two trillions of deficits right now,
• 41:51
  Speaker 1: raise the deficit of six trillion. Where's that going to
• 41:54
  Speaker 1: come from? And the deficits are only gonna increase with
• 41:57
  Speaker 1: the security medicaire going out of control. So and then
• 42:03
  Speaker 1: they also want these large scale energy infrastructure programs, you know,
• 42:08
  Speaker 1: solar energy and windmills and all this other stuff, something
• 42:13
  Speaker 1: around eight to twelve trillion dollars. And then free college,
• 42:19
  Speaker 1: loan cancelations, reparations, housing for everybody, job garantees. And they
• 42:29
  Speaker 1: actually want to expand these security We're I'm bankrupt enough,
• 42:32
  Speaker 1: so we want to expand it. We're talking about tens
• 42:34
  Speaker 1: of trillions of dollars. Don't where you can't even I mean,
• 42:45
  Speaker 1: you can print all that money, but almost instantaneously becomes
• 42:48
  Speaker 1: worthless because of inflation. So you know, we would add somewhere,
• 42:59
  Speaker 1: betwe I mean, seventy to two hundred trillion dollars over
• 43:03
  Speaker 1: the next ten years do color deficits. And that's on
• 43:07
  Speaker 1: top of the ninety four trillion they were gonna run anyway,
• 43:14
  Speaker 1: over the next ten years, we're gonna go for forty
• 43:18
  Speaker 1: to ninety four trillion. So yeah, I mean, it's it's
• 43:22
  Speaker 1: just put aside, how evil all this is, how immoral
• 43:28
  Speaker 1: it all is. It's unsurprisingly impractical too. Socialism is impractical.
• 43:36
  Speaker 1: I mean, our coent system, which is not socialism, is impractical.
• 43:40
  Speaker 1: A mixed economy is impractical. It's a loser, so forget
• 43:48
  Speaker 1: it right. Basically, Republicans and Democrats now are joining together
• 43:56
  Speaker 1: to rule out any cuxtasi security whatever happens. We're not
• 44:02
  Speaker 1: touching soial security. And if they're not touching such security,
• 44:05
  Speaker 1: you can guarantee that they're not going to touch Medicaid.
• 44:08
  Speaker 1: Medicare is probably even more valuable than social security and
• 44:11
  Speaker 1: more expensive. So I don't know how this all ends.
• 44:18
  Speaker 1: I mean it really the numbers are staggering. I mean,
• 44:22
  Speaker 1: the only way you can get around this, and this
• 44:25
  Speaker 1: is what I think people are praying. If you pray,
• 44:28
  Speaker 1: this is what you pay for because you're not going
• 44:30
  Speaker 1: to see political change. So what people are praying for
• 44:34
  Speaker 1: is a you know, the economy growing at five to
• 44:39
  Speaker 1: six percent because of AI. And if the economy grows
• 44:42
  Speaker 1: at five to six percent, we somehow solve these problems. Right,
• 44:47
  Speaker 1: the economy grows, tax revenue explodes. We have so much
• 44:50
  Speaker 1: money coming in that we pay off all this stuff
• 44:53
  Speaker 1: relatively easily. Go find a five six percent economy where
• 44:59
  Speaker 1: that's going to happen given the size of government, I
• 45:04
  Speaker 1: think it's possible. I think it's possible to go at
• 45:07
  Speaker 1: five six percent. I think the US economy is capable
• 45:10
  Speaker 1: of that certainly with AI. Bet you would need a
• 45:14
  Speaker 1: very different set of government policies to achieve that. All right, Uh,
• 45:23
  Speaker 1: let's see, guys, I mean, Michael is like, I mean,
• 45:31
  Speaker 1: what's the two two hundred and five dollars. Almost all
• 45:35
  Speaker 1: the money, all the super chat money coming in right
• 45:38
  Speaker 1: now is from Michael. So Michael needs a little bit
• 45:41
  Speaker 1: of help, you know, to get to our targets. We
• 45:43
  Speaker 1: need we need your help. So if any of you
• 45:46
  Speaker 1: are generous enough to help Michael, help me get to
• 45:49
  Speaker 1: our goals. Then please jump in and do a sticker
• 45:52
  Speaker 1: or ask a question with the super Chat and get engaged,
• 45:55
  Speaker 1: get involved, you know, support the show and not a
• 45:58
  Speaker 1: lot of stickers. It's Michael. That's it great, just did
• 46:02
  Speaker 1: a stick I thank you Greg that you know and Rob,
• 46:07
  Speaker 1: Rob has Robert has a question and see evilis as
• 46:12
  Speaker 1: a question better than that. It's Michael's day. So join
• 46:17
  Speaker 1: Michael in supporting the show. All right. Last week we
• 46:21
  Speaker 1: talked about the negotiations between the United States and Canada
• 46:26
  Speaker 1: to try to avoid the the the United States imposing
• 46:35
  Speaker 1: fifty percent tariffs on what twenty billion dollars of Canadian
• 46:39
  Speaker 1: goods that the United States imports from Canada or Americans,
• 46:43
  Speaker 1: not the United States doesn't import anything, but Americans inport
• 46:46
  Speaker 1: from Canadians. Well, on Friday that all blew up in
• 46:51
  Speaker 1: Canada basically Withdrew drew from the negotiations. They claimed that
• 46:54
  Speaker 1: the American demands were completely unreasonable, that America is trying
• 46:58
  Speaker 1: to dictate to Canada which trading partners should be, what
• 47:01
  Speaker 1: kind of trade deals they should have with other countries.
• 47:03
  Speaker 1: Plus they were demanding all kinds of other stuff that
• 47:07
  Speaker 1: Canada wasn't willing to provide, and as I said from
• 47:12
  Speaker 1: the beginning, I think Canada should have withdrawn from those
• 47:14
  Speaker 1: talks from the beginning and just unilaterally lowered its own
• 47:18
  Speaker 1: tariffs to zero. That, of course, will not happen. Did
• 47:21
  Speaker 1: not happen, but they did. They left Torump freaked out.
• 47:27
  Speaker 1: He declared no more negotiations and you know, starting Saturday,
• 47:32
  Speaker 1: there are now fifty percent tariffs on a bunch of
• 47:36
  Speaker 1: Canadian goods. He as then, I think since then announced
• 47:44
  Speaker 1: that he was going to impose more tariffs on Canada.
• 47:51
  Speaker 1: So I think today he announced announce Yes, so today
• 47:54
  Speaker 1: announced that he was gonna put tariffs in Canadian vehicles
• 48:00
  Speaker 1: of parts and steal. That is going to be fifty percent.
• 48:04
  Speaker 1: That's going to start January one, twenty twenty seven. So
• 48:07
  Speaker 1: after the mid terms, Canada has said that it is
• 48:15
  Speaker 1: going to retaliate that as of Labor Day. They're taking
• 48:21
  Speaker 1: their time, they will put on tabiff some twenty billion
• 48:25
  Speaker 1: dollars of American goods. Right, American goods, So you know,
• 48:34
  Speaker 1: Canada is Canada's I mean screwed right, but white again.
• 48:41
  Speaker 1: White Canada would inflict pain on itself because America choose
• 48:44
  Speaker 1: to say flick pain on itself is you know, economically
• 48:50
  Speaker 1: ignorant to put it that way, economically ignorant. Uh Tallisa
• 48:57
  Speaker 1: taxes the course, the forced the anti trade, and therefore
• 49:03
  Speaker 1: the anti human life trade is pro human life. Consumers
• 49:08
  Speaker 1: and producers pay the tariff domestic consumers and producers, and
• 49:13
  Speaker 1: then encourages coneism and destroys freedom. And he had Trump
• 49:20
  Speaker 1: is committed to this. He loves this. This is his stick,
• 49:26
  Speaker 1: and he and he and you know and he you know,
• 49:30
  Speaker 1: this is Canada. What is Trump exactly trying to get
• 49:34
  Speaker 1: from Canada? We should have and what we had for
• 49:38
  Speaker 1: many many years. And what Trump negotiated in two thousand
• 49:41
  Speaker 1: was basically a free trade deal with Canada and Mexico
• 49:44
  Speaker 1: which basically lower tariffs to close to zero on almost everything.
• 49:50
  Speaker 1: And Trump is desperately trying to undo that. He's desperately
• 49:54
  Speaker 1: trying to get US away from free trade. Now again,
• 50:03
  Speaker 1: this only effects about five percent of Canadian exports to
• 50:06
  Speaker 1: the United States each year because the rest is still
• 50:09
  Speaker 1: under the USMC or whatever it's called, the NAFTA deal.
• 50:14
  Speaker 1: But Trump is trying to destroy NAFTA. He's trying to
• 50:17
  Speaker 1: undo after he's trying to raise your costs. He's trying
• 50:21
  Speaker 1: to make more expensive for you to live. People still
• 50:26
  Speaker 1: support this guy. Oh, it's a choice you're on. It's
• 50:30
  Speaker 1: a binary choice, some binary that you have to support
• 50:35
  Speaker 1: everything he does. Anyway, Connie, in his stupidity, declared Saturday
• 50:42
  Speaker 1: that Canada was at war with the United States and
• 50:44
  Speaker 1: would retaliate dollar for dollar with tariffs of its own,
• 50:48
  Speaker 1: which would take effects September eighth. The US has then
• 50:52
  Speaker 1: vowed to respond with additional tariffs if Connie proceeds with
• 50:56
  Speaker 1: the vitaliatory terriffs, So expect higher taris. And of course
• 51:04
  Speaker 1: we've already got the fifty percent tariffs on automobiles and
• 51:07
  Speaker 1: autopots coming in on January one. It'll be it'll be now.
• 51:16
  Speaker 1: Remember North American vehicle production crosses the border repeatedly. This
• 51:22
  Speaker 1: is going to be a tax that it's going to
• 51:24
  Speaker 1: be incredibly destructive to American auto companies. But Trump doesn't care.
• 51:28
  Speaker 1: He doesn't care. He just loves his tariffs, even when
• 51:33
  Speaker 1: they absolute failures. He loves them so much that he
• 51:38
  Speaker 1: is now imposing tariffs on China, new tariffs on China, right,
• 51:43
  Speaker 1: I mean, she is about to visit the White House,
• 51:46
  Speaker 1: and Trump is adding seven and a half percent on
• 51:48
  Speaker 1: Chinese goods over excess capacity. This is to penalize China
• 51:56
  Speaker 1: for excess capacity. What are we doing? What are we doing?
• 52:10
  Speaker 1: It'll be interesting this, this meeting between between she and
• 52:15
  Speaker 1: Trump will be interesting, Uh, in terms of how that goes.
• 52:22
  Speaker 1: He's coming to the United States. Will will Trump have
• 52:28
  Speaker 1: any gestures? Will he give him stuff, you know, lower
• 52:31
  Speaker 1: tariffs or whatever? I don't know, will even come. The
• 52:36
  Speaker 1: biggest losers of Trump's trade war with Canada, UH home
• 52:43
  Speaker 1: builders and US automakers. Right. Here's this is from I
• 52:48
  Speaker 1: think the Wall Street Journal. Even before Monday's declined, the
• 52:52
  Speaker 1: big three auto companies already had been been dealt a
• 52:57
  Speaker 1: setback early Saturday when a new trade year between US
• 53:00
  Speaker 1: and Canada failed to get finalized, leading the trumpet reinstation
• 53:04
  Speaker 1: to roll out its fifty percent tariffs on twenty billion
• 53:07
  Speaker 1: dollars worth of Canadian inputs and spurring Canada to announced
• 53:10
  Speaker 1: retaliatory liveries levees that will start September eighth. If the
• 53:14
  Speaker 1: deal had gone into effect, US tariffs and Canadian built
• 53:17
  Speaker 1: automobiles had been expected to drop the fifteen percent from
• 53:20
  Speaker 1: twenty five percent in what would have been a win
• 53:24
  Speaker 1: for detroytch Big Three. Instead, the Canadian factories face an
• 53:28
  Speaker 1: increase in the US tariffs on their products in about
• 53:31
  Speaker 1: four months. Meanwhile, automobiles built in European Union, Japan, and
• 53:36
  Speaker 1: South Korea enjoy a US tariff for eight of fifteen percent.
• 53:39
  Speaker 1: They have a competitive advantage. These American cars are going
• 53:43
  Speaker 1: to have a disadvantage because pieces of them are made
• 53:46
  Speaker 1: in Canada. It's insane. The trade group that represents four
• 53:50
  Speaker 1: GM and stellanis Stelantis had previously complained about trade policies
• 53:56
  Speaker 1: that provided lower tariffs of vehicles imported from Asia or
• 53:59
  Speaker 1: Europe than for North American built vehicles with high US content.
• 54:04
  Speaker 1: American home builders also are viewed as among the big
• 54:07
  Speaker 1: losers due to the new trade tensions between US and Canada.
• 54:10
  Speaker 1: The Canadian goods facing you fifty percent tariffs of early
• 54:15
  Speaker 1: saturity include construction materials such as cement, paint, plywood, median
• 54:20
  Speaker 1: density firewood, fireboard, and other stuff. So in an attempt
• 54:26
  Speaker 1: to lower your cost of living, Trump is doing everything
• 54:31
  Speaker 1: in its PROWERCT to raise interest rates, increase the deficit,
• 54:37
  Speaker 1: increase come and borrowing, raise the cost of homes by
• 54:42
  Speaker 1: raising the cost of construction, and raise the cost of
• 54:45
  Speaker 1: American automobiles. American auto companies will have to lay off
• 54:48
  Speaker 1: people because they won't be able to afford to keep
• 54:51
  Speaker 1: them on. I mean, can you imagine a set of
• 54:58
  Speaker 1: dumber I mean, just playing dumber. Even the democratic socialism
• 55:02
  Speaker 1: in America at least you see the logic in what
• 55:07
  Speaker 1: they're trying to do. They believe delusionally that governments a
• 55:12
  Speaker 1: better provider of healthcare and all these other things than
• 55:15
  Speaker 1: they want the governed to do. But what exactly is
• 55:18
  Speaker 1: Trump trying to do? And when every single day reality
• 55:23
  Speaker 1: sends signals that it's not working, he doubles down. He
• 55:29
  Speaker 1: doubles down. So, I mean, we've seen tariffs raise the
• 55:35
  Speaker 1: cost of living for Americans. Americans are the ones who
• 55:37
  Speaker 1: pay the tariff, doesn't matter. He doubles down. Even in
• 55:41
  Speaker 1: that we call it rules is a particular version of
• 55:46
  Speaker 1: the Travis is unconstitutional. He doubles down. He finds a
• 55:49
  Speaker 1: different way to enforce the tariffs. So it's kind of
• 55:54
  Speaker 1: a dumb economics, just stupid economics. I mean Trump inhebited
• 56:02
  Speaker 1: sputtering economy, and economy was growing, growing slowly, but growing
• 56:07
  Speaker 1: and employment was good, and we're about to face this
• 56:11
  Speaker 1: massive investment in AI which was going to help the
• 56:14
  Speaker 1: US economy. And he could have written this. I mean,
• 56:18
  Speaker 1: we could be sitting on a two point five percent
• 56:20
  Speaker 1: economic growth right now, maybe you know, maybe more, maybe less,
• 56:24
  Speaker 1: but two and a half percent. If he's done a
• 56:25
  Speaker 1: little bit to lower the deficits and to show some
• 56:29
  Speaker 1: interesting cutting spending, we could we could have a really
• 56:33
  Speaker 1: good economy right now. Instead, Tariff's trade wars was that
• 56:38
  Speaker 1: are not one? You know, was where we lose or
• 56:43
  Speaker 1: where we go nowhere? That's just end in stalemates. It's
• 56:49
  Speaker 1: mind bottling. How dumb all this is. I mean, his
• 56:55
  Speaker 1: deregulation was good. Energy policy is good, I mean really good.
• 57:00
  Speaker 1: Dantagy policy is really good. I mean this huge amount
• 57:06
  Speaker 1: of potential in this country. And the environmental regulation is good.
• 57:13
  Speaker 1: He got helped from the Supreme Court by overturning Chevron.
• 57:18
  Speaker 1: There was real opportunity so the Trump administration to steer
• 57:22
  Speaker 1: this economy in a very positive direction without the kind
• 57:29
  Speaker 1: of radical reforms I would argue for just put your
• 57:32
  Speaker 1: head down and do the basics. We're kicking out immigrants
• 57:37
  Speaker 1: who are hard working in America, helping build this country.
• 57:42
  Speaker 1: We're just doing stupid stuff that has much more to
• 57:48
  Speaker 1: do with virtue signaling. But it's not even virtue. It's
• 57:52
  Speaker 1: signaling something populist signaling. Oh look, I amazing teariffs. I'm
• 57:56
  Speaker 1: protecting your jobs. Wait a minute, tais destroy our jobs.
• 58:00
  Speaker 1: But it doesn't matter. It's it's it seems like it's
• 58:02
  Speaker 1: doing that. I'm kicking out immigrants. Look how tough I am.
• 58:06
  Speaker 1: Why is that a good thing. It's hurting my it's
• 58:08
  Speaker 1: hurting my wages, and it's hurting the job creation.
• 58:15
  Speaker 3: Mm hm.
• 58:17
  Speaker 1: Anyway, it's it is depressing because it's it's so unnecessary,
• 58:29
  Speaker 1: it's so really just basic economic stupidity. I mean, I said,
• 58:37
  Speaker 1: and people push back on me. No, don't call them stupid.
• 58:42
  Speaker 1: He's not stupid. No, this is economic stupidity. I mean,
• 58:45
  Speaker 1: I mean the worst kind of of just just overwhelmingly ridiculous.
• 58:54
  Speaker 1: M hm. Anyway, that is where we are, and it's
• 59:03
  Speaker 1: not going away, not going away, and you know a
• 59:08
  Speaker 1: big chunk of this. Yeah, all right, let's stunch at
• 59:12
  Speaker 1: you on and then and then we'll talk about Ukraine
• 59:14
  Speaker 1: and then the DSA. Uh, let's talk about oh yeah,
• 59:17
  Speaker 1: one one one kind of counterpoint one positive news. The
• 59:21
  Speaker 1: positive news is it's not in America, but the positive
• 59:25
  Speaker 1: news is in South America. The positive news is the
• 59:28
  Speaker 1: South American Trading Block COSSUR, which includes includes, uh, what
• 59:36
  Speaker 1: do you call it, Argentina, Brazil, Chile, and I think
• 59:41
  Speaker 1: some other South American countries. That block is accelerating negotiations
• 59:48
  Speaker 1: with Canada, Japan, India, Vietnam, the United ab Elemirates, and
• 59:54
  Speaker 1: they've just completed a deal with the EU Singapore e
• 59:58
  Speaker 1: f t A. I'm not sure who e f TA is,
• 1:00:02
  Speaker 1: So they are the South Americans at least get the
• 1:00:06
  Speaker 1: value of free trade. They're trying to move towards more
• 1:00:10
  Speaker 1: free trade. Now this isn't perfect free trade. It's not
• 1:00:13
  Speaker 1: zero tariffs, it's not all that, but it's much better
• 1:00:17
  Speaker 1: than raising tariffs. It's going in the opposite direction. In
• 1:00:20
  Speaker 1: all cases, the deals lower tariffs, even if they protect
• 1:00:25
  Speaker 1: certain industries. Those industries are protected anyway, and the protections
• 1:00:31
  Speaker 1: are loosened. And yeah, I mean the South America, EU, Singapore,
• 1:00:36
  Speaker 1: they've already got deals and they're working with Canada and Japan, India, Vietnam, Yui.
• 1:00:40
  Speaker 1: It's great news for South America and gate news. Argentina
• 1:00:43
  Speaker 1: great news for the rest of South America. Maybe that's
• 1:00:46
  Speaker 1: where it's gonna happen. But look, these countries are adopting,
• 1:00:49
  Speaker 1: and partially they're looking at the US and saying, nobody's
• 1:00:52
  Speaker 1: gonna want to trade with America. Nobody's gonna want to
• 1:00:58
  Speaker 1: you know, America's pushing people away. Let them trade with us.
• 1:01:03
  Speaker 1: You know, South America. They grow the same kind of
• 1:01:07
  Speaker 1: food stuff we grow here, soybeans, wheat, corn. They can
• 1:01:11
  Speaker 1: replace us as providing food stuff for Asia, for example,
• 1:01:17
  Speaker 1: for China, who's a huge buyer of things like soybean.
• 1:01:20
  Speaker 1: Argentina and Brazil can replace us. They even are producing
• 1:01:24
  Speaker 1: now huge quantities of energy. We talked about Argentina Brazil
• 1:01:29
  Speaker 1: are both becoming real energy powerhouses. They don't attack, but
• 1:01:36
  Speaker 1: in terms of raw materials, Chili has vast resources that
• 1:01:43
  Speaker 1: it could be selling in the world. So they are
• 1:01:46
  Speaker 1: going for trade, They are going for self improvement, while
• 1:01:50
  Speaker 1: we are shooting ourselves in the knees, feet, hips. You know,
• 1:01:55
  Speaker 1: haven't quite shut ourselves in the brain yet. But it
• 1:01:57
  Speaker 1: feels as if we are any minute now, any minute now?
• 1:02:07
  Speaker 1: What what? What? What? What are people complaining about that
• 1:02:09
  Speaker 1: I'm going too slow, you know, one hour in, one
• 1:02:13
  Speaker 1: hour later, three points in. I mean you're getting long shows.
• 1:02:16
  Speaker 1: You should celebrate that, you're getting a lot of urn brook.
• 1:02:20
  Speaker 1: Don't complain. Is the material being you know, repetitive and
• 1:02:26
  Speaker 1: boring is the question. If it is, then let me know,
• 1:02:28
  Speaker 1: because then I'll shorten it and tighten it up. But anyway,
• 1:02:34
  Speaker 1: let me know. Iwon. But all it counts. Iran's economy
• 1:02:41
  Speaker 1: is a really really really bad shape. Standard living, quality
• 1:02:44
  Speaker 1: of life, inflation, interest rates, everything is collapsing. Everything is
• 1:02:48
  Speaker 1: going down. But that's not going to cause its rulers
• 1:02:53
  Speaker 1: to capitulate. Iran's exchange rate with a dollar reached two
• 1:02:58
  Speaker 1: point zero two million rials padala. They expect gdpeep to
• 1:03:07
  Speaker 1: go down five percent this year. That is, we want
• 1:03:11
  Speaker 1: to be five percent poor as a country. Then it
• 1:03:16
  Speaker 1: was a year ago. Staple food prices are going through
• 1:03:21
  Speaker 1: the roof, and the Treasury Department is now promising an
• 1:03:28
  Speaker 1: economic d day. Indeed, Bessett came out this afternoon and
• 1:03:36
  Speaker 1: announced a whole series of of of you know, constraints
• 1:03:47
  Speaker 1: on the Iranian economy, but primarily on people who helped
• 1:03:52
  Speaker 1: the Iranians. Now What was interesting is what he didn't see.
• 1:03:56
  Speaker 1: He didn't mention the Chinese. He said that Trump was
• 1:04:00
  Speaker 1: on the phone to a lot of world leaders trying
• 1:04:02
  Speaker 1: to get their support for all these new set of uh,
• 1:04:07
  Speaker 1: you know, new set of sanctions what they call secondary sanctions,
• 1:04:13
  Speaker 1: sanctions on countries that trade with run. But the only
• 1:04:18
  Speaker 1: real big player in that is probably China. Is the
• 1:04:24
  Speaker 1: United States really going to start sanctioning Chinese companies who
• 1:04:26
  Speaker 1: trade with you on? And what's China going to respond
• 1:04:30
  Speaker 1: to that? Now? You know, some people in Iran a panicking.
• 1:04:36
  Speaker 1: The president over there, who is relatively speaking, kind of moderate,
• 1:04:41
  Speaker 1: and the central bank governor have warned that Hungu disappearing
• 1:04:46
  Speaker 1: oil exports and phone exchange shortages are really threatening the
• 1:04:50
  Speaker 1: regime stability. But the ILGC people remain strong. They they're
• 1:04:59
  Speaker 1: not willing to give up anything, and they don't care
• 1:05:01
  Speaker 1: if there the people starve. They have no problem with that. Indeed,
• 1:05:07
  Speaker 1: top Iranian security official said Sunday that Iran would see
• 1:05:12
  Speaker 1: any country support for the new US economic measures against
• 1:05:16
  Speaker 1: Iran right as an active war again China, the US
• 1:05:22
  Speaker 1: has said they would impose an unprecedented level of economic
• 1:05:24
  Speaker 1: will fit on Iran and Bessett wrote O bed for
• 1:05:29
  Speaker 1: the Financial Times, calling it Economic D Day, and yeah,
• 1:05:35
  Speaker 1: you know, and today he announced all the stuff, he
• 1:05:37
  Speaker 1: didn't really say much. And again the five hundred thousand
• 1:05:42
  Speaker 1: kilo gorilla in the room was the elephant in the room.
• 1:05:48
  Speaker 1: Whatever was China? And even he didn't really mention China. Right,
• 1:05:52
  Speaker 1: So this is what this is what Bessett said today.
• 1:05:55
  Speaker 1: At President Trunck's direction, in the United States Treasury has
• 1:05:58
  Speaker 1: begun Operation Economic Outcast, a non president of campaign against
• 1:06:01
  Speaker 1: Islamic Republic of Iran, and it's an ablers in the
• 1:06:04
  Speaker 1: Second World War D Day mark. They started the beginning
• 1:06:07
  Speaker 1: of a campaign with our allies to target and drive
• 1:06:09
  Speaker 1: the enemy from its positions, including those in third countries. Today,
• 1:06:14
  Speaker 1: in the same spirit, we are launching an economic onslaught
• 1:06:16
  Speaker 1: against Iran's financial connections around the globe. Bess has said
• 1:06:21
  Speaker 1: any entity to facilitates money laundering on behalf of Iran
• 1:06:24
  Speaker 1: will be removed from the US dollar system. The clerk
• 1:06:27
  Speaker 1: just started ticking. The operation expands the categories for secondary
• 1:06:32
  Speaker 1: sanctions and entities and countries to transact the Tehran and
• 1:06:35
  Speaker 1: also introduces new sanctions across a variety of vital sectors
• 1:06:39
  Speaker 1: including digital assets, gold, aviation, technology, and shipping. We've had
• 1:06:45
  Speaker 1: forty forty seven years of sanctions on Iran. Forty seven
• 1:06:51
  Speaker 1: years of sanctions in Iran? Is that really done? Anything?
• 1:06:57
  Speaker 1: Best said, President is making phone calls. Does to cease
• 1:07:01
  Speaker 1: their interactions with the Iranian regime? Best it said economic
• 1:07:08
  Speaker 1: pressure campaigns will not end until the regime stands alone.
• 1:07:13
  Speaker 1: But it'll it'll stand alone. So how long? How long
• 1:07:17
  Speaker 1: will the United States keep this up? How many administrations?
• 1:07:21
  Speaker 1: What's to be expected? And again, has forty seventy years
• 1:07:25
  Speaker 1: of sanctions really helped? No? No, all right, we will
• 1:07:34
  Speaker 1: keep following the run story and see what happens in
• 1:07:39
  Speaker 1: the meantime. Ukraine, we kind of know what's going on
• 1:07:42
  Speaker 1: with Ukraine. A real deficit of defensive of defense defense systems. Ukraine, though,
• 1:07:51
  Speaker 1: is heavily investing in their domestic ability to manufacture weapons systems.
• 1:07:59
  Speaker 1: They become are very good and really leaders in the field.
• 1:08:04
  Speaker 1: The United Kingdom now is going to help Ukraine acquire
• 1:08:08
  Speaker 1: productive capacity. So Britain is going to permit the Ukrainians
• 1:08:14
  Speaker 1: or a British company to share classified technical information about
• 1:08:18
  Speaker 1: British components in the storm shadow missile cruise missile, So
• 1:08:24
  Speaker 1: this is not any defense system, this is an offensive
• 1:08:27
  Speaker 1: cruise missile, potentially enabling production inside Ukraine. Now, this is
• 1:08:33
  Speaker 1: strategically more important than you know, just selling them themselves,
• 1:08:40
  Speaker 1: because this will allow the Ukrainians to develop their own
• 1:08:43
  Speaker 1: military industry and their own military industry expertise. It shifts
• 1:08:51
  Speaker 1: to systems from drawing down Allied inventories of these weapons
• 1:08:56
  Speaker 1: towards expanding Ukraine's ability in manufactured weapons itself. Now, again,
• 1:09:02
  Speaker 1: we don't know what the production rate is going to be.
• 1:09:05
  Speaker 1: We don't know when this trence is going to happen.
• 1:09:08
  Speaker 1: We don't know when how long it's going to take
• 1:09:11
  Speaker 1: to set up operations in Ukraine. We don't know who's
• 1:09:14
  Speaker 1: going to finance all of this. Ukraine is running out
• 1:09:16
  Speaker 1: of money and it's trying to get the EU to
• 1:09:18
  Speaker 1: give it money on an accelerated schedule Russia. In the meantime,
• 1:09:25
  Speaker 1: LAARN one hundred and forty three drones and several missiles Overnight,
• 1:09:29
  Speaker 1: Ukraine authority has reported eight people killed and forty three injured.
• 1:09:32
  Speaker 1: And this happens pretty much every single night. But Britain
• 1:09:36
  Speaker 1: is moving in the right direction. Licensing agreements provide again
• 1:09:42
  Speaker 1: the Ukrainians with expertise and the capacity produce it to
• 1:09:45
  Speaker 1: themselves and makes them less dependent on Britain and the West.
• 1:09:50
  Speaker 1: And that is all a good thing, not a not
• 1:09:53
  Speaker 1: a bad thing. So you know, we've talked about the
• 1:09:56
  Speaker 1: fact that Trump is kind of promised Ukrainians could build
• 1:10:01
  Speaker 1: the Patriot missile. But the companies raytheon and I think
• 1:10:04
  Speaker 1: Lockkeey don't really want that because they don't want the competition.
• 1:10:08
  Speaker 1: They don't want Ukrainians building these missiles. They might do
• 1:10:11
  Speaker 1: it cheaper and better than the Americans can make them
• 1:10:14
  Speaker 1: look bad, but that's the solution of the solutions. Let
• 1:10:18
  Speaker 1: Ukrainians build the stuff. And I mean, if these military
• 1:10:26
  Speaker 1: companies had any foresight, they would encourage them and they
• 1:10:30
  Speaker 1: would set up shop in Ukraine and they would try
• 1:10:33
  Speaker 1: to learn from the Ukrainians. Oh, I just return to
• 1:10:41
  Speaker 1: the DSA, the Democratic Socials of America for just a
• 1:10:45
  Speaker 1: little bit. I thought i'd talk more about this, but
• 1:10:48
  Speaker 1: I'm not going to because it's over runing late. I mean,
• 1:10:52
  Speaker 1: the thing about the DSA is which is different than
• 1:10:56
  Speaker 1: the Democrats, is that they're telling you exactly what they believe.
• 1:11:00
  Speaker 1: They're not holding back democratic socialis in America have an
• 1:11:04
  Speaker 1: official platform. That official platform says its objective is to
• 1:11:09
  Speaker 1: end the capitalism, abolish ice. I'm with them on That's
• 1:11:14
  Speaker 1: the only thing I'm with them on. Eliminate sanctions against
• 1:11:17
  Speaker 1: regimes including Iran, end aid to Israel, Abolish the Senate,
• 1:11:23
  Speaker 1: and make the executive and judiciary subordinate to Congress, Congress
• 1:11:32
  Speaker 1: being the House of Representatives because the Senator is gone,
• 1:11:34
  Speaker 1: and the House of Representative being the most democratic of
• 1:11:37
  Speaker 1: all the institutions. They don't want a Scandinavian welfare state.
• 1:11:46
  Speaker 1: They want something much more into East Germany. Right, Scandinavia
• 1:11:53
  Speaker 1: is much more like America than what the DSA would
• 1:11:56
  Speaker 1: like to turn America into. Scandinavia has very little regulations,
• 1:12:02
  Speaker 1: very little controls. And you know we've talked about Sweden
• 1:12:09
  Speaker 1: has been heading in the direction of more markets, less
• 1:12:13
  Speaker 1: government since the early nineteen nineties, so now for thirty years,
• 1:12:18
  Speaker 1: thirty five years. And then if you add to that
• 1:12:23
  Speaker 1: the fact that you know, the opposition to DSA comes
• 1:12:29
  Speaker 1: from people like jad Evans who basically agree.
• 1:12:33
  Speaker 4: With them, who also wants to expand government, manage trade,
• 1:12:40
  Speaker 4: provide industrial favoritism, and explicitly take ownership positions in America's.
• 1:12:50
  Speaker 1: Companies, in private companies. All we have today on the
• 1:12:56
  Speaker 1: two extremes in the political map are two variations of
• 1:13:00
  Speaker 1: the same statist, collectivistic, socialist system. And you know the
• 1:13:09
  Speaker 1: reality is that there's nobody out there, literally nobody, And
• 1:13:16
  Speaker 1: this is what's really scary. Nobody in politics, but nobody
• 1:13:20
  Speaker 1: even outside of politics. Nobody out there actually defending capitalism,
• 1:13:30
  Speaker 1: the idea of them making exceptionalism something unique about America,
• 1:13:33
  Speaker 1: something unique about the Maican system, the Megan system that
• 1:13:38
  Speaker 1: was capitalist. There's literally nobody out there. As I've said,
• 1:13:47
  Speaker 1: almost all the influences online are statists and influenced by
• 1:13:51
  Speaker 1: Marks jd Vance, the presumptive nominee for the presidency in
• 1:13:57
  Speaker 1: twenty twenty eight of the Republican Party is influenced by
• 1:14:01
  Speaker 1: the Need, who's influenced by marx You can't differentiate them
• 1:14:05
  Speaker 1: in any significant way. So, you know, you have a
• 1:14:14
  Speaker 1: left that's becoming more and more Marxist, you have a
• 1:14:17
  Speaker 1: right that's trying to catch up with them, and you
• 1:14:22
  Speaker 1: have nobody, Nobody defending capitalist, nobody talking about how markets work,
• 1:14:30
  Speaker 1: Nobody talking about the beauty and efficaciousness and morality, and
• 1:14:34
  Speaker 1: meaning and purpose that can be found in markets, in
• 1:14:38
  Speaker 1: individual choices. Indeed, we constantly are told that we feel
• 1:14:43
  Speaker 1: alienated because the marketplace cannot give us meaning, cannot give
• 1:14:47
  Speaker 1: us purpose, and therefore we're alienated and depressed. This is
• 1:14:58
  Speaker 1: the diet that the left and the right provide us
• 1:15:02
  Speaker 1: on a constant basis, really on a constant basis. Anyway
• 1:15:10
  Speaker 1: we hear on the on bookshow, will continue to fight,
• 1:15:13
  Speaker 1: to fight the good fight for capitalism. We'll keep talking
• 1:15:16
  Speaker 1: about capitalism, talking about capitalism. I thought i'd do a
• 1:15:21
  Speaker 1: little section here on just an interesting phenomenon that you're
• 1:15:25
  Speaker 1: seeing right now in the marketplace now. And I find
• 1:15:30
  Speaker 1: it interesting, you know, really fascinating. And it's a business
• 1:15:36
  Speaker 1: and it's a business strategy, and it could have dramatic
• 1:15:42
  Speaker 1: consequences in the foreseeable future in terms of you know,
• 1:15:48
  Speaker 1: prosperity and the future of AI. And that is really
• 1:15:53
  Speaker 1: what in Vidia. In Vidia is doing. In Nvidia is
• 1:15:58
  Speaker 1: one of, if not the largest company publicly traded company
• 1:16:01
  Speaker 1: in the world. It alternates with Apple, I guess periodically,
• 1:16:06
  Speaker 1: but in Vidia is the man, the designer, doesn't even manufacture,
• 1:16:10
  Speaker 1: it's the designer of the chips used to run AI programs.
• 1:16:20
  Speaker 1: These are graphic interface chips. These were chips that were
• 1:16:23
  Speaker 1: designed originally for gaming, and then it was realized that
• 1:16:28
  Speaker 1: they would be ideal for the kind of uses that
• 1:16:32
  Speaker 1: large language models need, and they have become the backbone
• 1:16:37
  Speaker 1: of the large language model industry. They all the data
• 1:16:41
  Speaker 1: centers that are being built are all intended to house
• 1:16:46
  Speaker 1: servers that run in Vidia chips or chips similar to
• 1:16:49
  Speaker 1: those of Nvidia. But in Vidia is the big player
• 1:16:52
  Speaker 1: out there, and it's it's an amazing story. And if
• 1:16:55
  Speaker 1: you've watched the CEO of Nvidia, he's an amazing guy.
• 1:16:59
  Speaker 1: H you know, immigrants to the United States from Taiwan,
• 1:17:02
  Speaker 1: who built this company from nothing and built it into
• 1:17:06
  Speaker 1: one of the large companies in the world. And right
• 1:17:11
  Speaker 1: now in Vidia seems to be kind of managing in
• 1:17:17
  Speaker 1: some sense, the entire AI industry. It's investing in all
• 1:17:25
  Speaker 1: of the AI companies. So right now, the latest story
• 1:17:30
  Speaker 1: is there there's stories out there that in Vidia is
• 1:17:34
  Speaker 1: about to invest thirty you know, I don't know how
• 1:17:39
  Speaker 1: many billions of dollars where is there. It's uctly exactly
• 1:17:44
  Speaker 1: how much money bent a lot of money into perplexity.
• 1:17:49
  Speaker 1: Perplexity which is another AI company at evaluation of thirty
• 1:17:54
  Speaker 1: billion dollars. Now, you know in Video has already invested
• 1:18:01
  Speaker 1: a lot of money in Perplexity. It's it's in previous rounds.
• 1:18:07
  Speaker 1: It's put up hundreds of millions of dollars. Perplexity has
• 1:18:14
  Speaker 1: grown a lot. It's annual revenues have risen for below
• 1:18:18
  Speaker 1: joinning fifty millions about seven hundred and fifty million in
• 1:18:23
  Speaker 1: less than a year. So they have a perplexity computer agent.
• 1:18:29
  Speaker 1: It's a you know in you know I again, I
• 1:18:33
  Speaker 1: don't know exactly what perplexity does. I'm sure you guys
• 1:18:37
  Speaker 1: some of you know a lot more about it than
• 1:18:38
  Speaker 1: I do. Here, the story for me is how in
• 1:18:41
  Speaker 1: Video is investing in them. But that's nothing right in
• 1:18:48
  Speaker 1: Videos already invested in Open a Eye earlier equity invest
• 1:18:55
  Speaker 1: It's an early equity investor. It's subsequently assigned eleven intent
• 1:19:00
  Speaker 1: under which Nvidia could invest up to one hundred billion
• 1:19:02
  Speaker 1: dollars at opening as Opening Eye deploys in Vidia systems
• 1:19:08
  Speaker 1: in its data centers. In other words, in Vidia is
• 1:19:12
  Speaker 1: providing the money for these companies to buy in Vidia chips,
• 1:19:19
  Speaker 1: to buy in Vidia services servers. Anthropic in Vidia's committed
• 1:19:25
  Speaker 1: to invest up to ten billion dollars. Anthropic simultaneously committed
• 1:19:30
  Speaker 1: to thirty billion dollars of basically in Vidia systems Mistrug,
• 1:19:39
  Speaker 1: which is the open AI of France, Europe's one AI play,
• 1:19:46
  Speaker 1: one AI company. In Vidia has invested in them, and
• 1:19:52
  Speaker 1: again Misstyle is going to use that money to buy
• 1:19:55
  Speaker 1: in Vidia machines Perplexity, and they've invested in our There's
• 1:20:00
  Speaker 1: XAI one Musk's outfit Cohere, Reflection AI, Thinking Machine Labs, Inflection,
• 1:20:08
  Speaker 1: Black Forest Labs, Sakana AI Imbue, pool Side, rack up
• 1:20:14
  Speaker 1: and Runway, among any other, among many others, and basically,
• 1:20:23
  Speaker 1: you know, the article I read said, it's like it's
• 1:20:26
  Speaker 1: like selling picks and shovels to the miners at the
• 1:20:31
  Speaker 1: same time taking you know, taking a share in the
• 1:20:36
  Speaker 1: in the minds themselves, right in the minds themselves. And
• 1:20:42
  Speaker 1: that the miners are using the investment in the minds
• 1:20:45
  Speaker 1: themselves to buy the picks and shovels. That's the other
• 1:20:48
  Speaker 1: twist to it. In Physical twenty twenty six, it supposed
• 1:20:55
  Speaker 1: the investors seventeen point five billion dollars in private companies
• 1:20:58
  Speaker 1: and infrastructure uns, including AI model developers, that buy in
• 1:21:04
  Speaker 1: video products directly or through cloud providers now, and it's
• 1:21:10
  Speaker 1: not even that. In Video is also heavily investing in
• 1:21:16
  Speaker 1: data centers now. It's not trying to own the data centers.
• 1:21:20
  Speaker 1: Data centers are just buildings with servers inside, and of
• 1:21:23
  Speaker 1: course they require power and water and a whole bunch
• 1:21:27
  Speaker 1: of facilities around them. So massive investments, right But in
• 1:21:33
  Speaker 1: video is you know, is trying to is obviously selling.
• 1:21:38
  Speaker 1: What it's selling is a complete AI factory, the GPU,
• 1:21:43
  Speaker 1: the CPUs, the networking, the rack system, and the software.
• 1:21:48
  Speaker 1: So you just buy everything that goes inside the building.
• 1:21:52
  Speaker 1: In video will sell it to you as a complete whole,
• 1:21:55
  Speaker 1: as a set. In addition, the video is arranging financing
• 1:22:02
  Speaker 1: for customers, so if you want to buy one of
• 1:22:05
  Speaker 1: these in Vidia things, in video will find you somebody
• 1:22:09
  Speaker 1: to lend you the money to do it. And then
• 1:22:12
  Speaker 1: it's also selectively guaranteeing land, power, buildings and leases, and
• 1:22:21
  Speaker 1: it's investing in modern companies in clouds and infrastructure developers
• 1:22:27
  Speaker 1: that will generate demand. So you know, they are basically
• 1:22:33
  Speaker 1: investing in every aspect of AI right now and every
• 1:22:37
  Speaker 1: piece of it. You know, if you think recently they
• 1:22:42
  Speaker 1: announced an initiative with Apollo. These are private equity funds Apollo, Blackrock, Blackstone, Blackfield, Brookfield, Goldman, Sachs,
• 1:22:50
  Speaker 1: and KKR intended to mobilize more than five hundred billion
• 1:22:55
  Speaker 1: dollars five hundred billion dollars for in video based infrastructure.
• 1:23:03
  Speaker 1: Now this is not in Vidia's five hundred billion. This
• 1:23:06
  Speaker 1: is the private equities five hundred billion memorandus of understanding
• 1:23:11
  Speaker 1: that the private equity will step in and invest. And
• 1:23:17
  Speaker 1: again this is you know. The idea is to turn
• 1:23:19
  Speaker 1: compute capacity into an infrastructure asset and in big institutional investors,
• 1:23:25
  Speaker 1: private equity investors into fund the whole thing. A good
• 1:23:31
  Speaker 1: example of this is in Ohio. It's called ports Pike Campus.
• 1:23:37
  Speaker 1: A company called sb Energy will build, own and operate
• 1:23:40
  Speaker 1: the data center. Open AI will lease it for twenty
• 1:23:43
  Speaker 1: years and use it and use as much as eight
• 1:23:47
  Speaker 1: it gigawats. I don't even know what that means. In
• 1:23:50
  Speaker 1: Nvidia will provide credit support for an initial four point
• 1:23:53
  Speaker 1: two five gigawottes of land power and shell capacity. Again,
• 1:23:57
  Speaker 1: don't know what that means exactly, with an option on
• 1:23:59
  Speaker 1: their remains done, although we up to eight right, the
• 1:24:02
  Speaker 1: site would be exclusively post in Vidia compute in VideA
• 1:24:08
  Speaker 1: is investing one point five billion in SB Energy. I
• 1:24:12
  Speaker 1: mean it's amazing. Now what wowys me here? I mean
• 1:24:16
  Speaker 1: A couple of things worry me here. One. I mean,
• 1:24:22
  Speaker 1: how do I say this? This clearly violates anti trust
• 1:24:26
  Speaker 1: law as it is today. I mean, if they want
• 1:24:30
  Speaker 1: a politically favored industry, the anti trust people would be
• 1:24:39
  Speaker 1: all over them, all over them. It's clear violation right
• 1:24:49
  Speaker 1: the owning and contracting that that giving people money and
• 1:24:53
  Speaker 1: signing contracts with them to force them to be exclusively
• 1:24:58
  Speaker 1: in video. I mean, this is this God. I forget
• 1:25:02
  Speaker 1: the legal terminology for it, but they are legal terms
• 1:25:06
  Speaker 1: for all of this. And in the past companies that
• 1:25:09
  Speaker 1: did this got into massive anti est problems. Now they're
• 1:25:14
  Speaker 1: a favorite industry. They've sucked up to Donald Trump. They're
• 1:25:18
  Speaker 1: not in trouble anytime soon. But it was a long run. Yeah,
• 1:25:25
  Speaker 1: who knows. Secondly, what happens if it turns out that
• 1:25:33
  Speaker 1: at least some of this is a bubble. It seems
• 1:25:38
  Speaker 1: like it all collapses upon itself. It seems like and bubble.
• 1:25:45
  Speaker 1: I mean here, not that the industry is not worth
• 1:25:48
  Speaker 1: a lot, not that AI is not real, It's all real,
• 1:25:51
  Speaker 1: but that these valuations are ridiculous. These valuations today are unjustified,
• 1:25:57
  Speaker 1: and then there'll be a correction in videos buying into
• 1:26:01
  Speaker 1: a lot of companies are very high valuations and investing
• 1:26:04
  Speaker 1: a lot of money. And what happens? How does that
• 1:26:07
  Speaker 1: all get written down? How does that Maybe there's over
• 1:26:10
  Speaker 1: capacity for example, maybe it turns out too many data
• 1:26:13
  Speaker 1: sets are being built. How does I just worry about
• 1:26:18
  Speaker 1: how that plays out in financial markets and how all
• 1:26:21
  Speaker 1: this complexity that exists and in videos balance sheet is
• 1:26:28
  Speaker 1: going to play out? You know this is I see
• 1:26:37
  Speaker 1: the logic in what in video is trying to do.
• 1:26:40
  Speaker 1: It's investing in its customers and encouraging them to buy
• 1:26:46
  Speaker 1: in video products. The investments in product sales have to
• 1:26:52
  Speaker 1: be distinct products your contracts. That's how they tried to
• 1:26:55
  Speaker 1: stay away from anti trust, although with an aggressive anti
• 1:26:59
  Speaker 1: trusting so they won't be able to And theoretically a
• 1:27:04
  Speaker 1: video could earn both investment returns and hardware profits. But
• 1:27:11
  Speaker 1: do we know what real demand is given these financing structures.
• 1:27:17
  Speaker 1: Can we see through all these capital investments and contracts
• 1:27:21
  Speaker 1: to see what's really going on? And some of these
• 1:27:27
  Speaker 1: guarantees of their facilities and support for residual value of
• 1:27:31
  Speaker 1: the equipment. How does that get priced, you know? And
• 1:27:39
  Speaker 1: is it accelerating economically productive capacity or is it using
• 1:27:44
  Speaker 1: vendor financing to bring forward purchasers whose ultimate users cannot
• 1:27:50
  Speaker 1: cannot actually afford them, cannot generate enough revenue to afford them.
• 1:27:57
  Speaker 1: I mean, we'll see that this is going to play
• 1:27:59
  Speaker 1: out over time. It's going to be fascinating to watch.
• 1:28:01
  Speaker 1: I mean, the video is becoming a chip, you know,
• 1:28:04
  Speaker 1: a merchant bank, an architecture company, an underwriter of real estate,
• 1:28:12
  Speaker 1: and an underwriter basically the entire AI economy and how
• 1:28:17
  Speaker 1: that plays out is going to be fascinating to watch.
• 1:28:20
  Speaker 1: I'm looking forward to it. I think it's really interesting,
• 1:28:23
  Speaker 1: you know, and the guys obviously brilliant, so I wouldn't
• 1:28:27
  Speaker 1: second guess him. But they're risks. They are real risks,
• 1:28:34
  Speaker 1: and even if they're no risks, it's just interesting. It's
• 1:28:38
  Speaker 1: just damn interesting, all right. A couple of achievement stories,
• 1:28:44
  Speaker 1: quick achievement stories. I don't know if you saw the
• 1:28:46
  Speaker 1: video of this, but right now their hosting the Humanoid
• 1:28:51
  Speaker 1: Robot Olympics. I think it is no no, it's the
• 1:28:54
  Speaker 1: huge It's the World Humanoid robot games. They're called It's
• 1:29:01
  Speaker 1: It's It's in Beijing, and as part of this, they
• 1:29:05
  Speaker 1: had a hundred meter sprints, right, so the robots lined
• 1:29:10
  Speaker 1: up and they ran one hundred meters and a human
• 1:29:15
  Speaker 1: under robot has basically basically beaten Hussein Hussein Bolts world record,
• 1:29:25
  Speaker 1: which was I think nine point five something for one
• 1:29:29
  Speaker 1: hundred meters. The the latest robot, Yongbong Ultram, can run
• 1:29:40
  Speaker 1: one hundred meters in nine point three to nine. It
• 1:29:43
  Speaker 1: runs funny, but it runs fast. It used to, by
• 1:29:48
  Speaker 1: the way, not that long. A few months ago it
• 1:29:50
  Speaker 1: ran the same one hundred meter distance at twenty one
• 1:29:53
  Speaker 1: point five seconds, so it's cut it in less than half.
• 1:30:00
  Speaker 1: That's the kind of speed of improvement over one year.
• 1:30:06
  Speaker 1: I guess that's the speed of improvement over one year.
• 1:30:09
  Speaker 1: So just I mean, these robots are becoming more dexterious,
• 1:30:14
  Speaker 1: more able, stronger, faster. I mean a big part of
• 1:30:20
  Speaker 1: running is balance control. Pretty impressive, Pretty impressive, right, So
• 1:30:29
  Speaker 1: robots now run faster than humans for the first time
• 1:30:33
  Speaker 1: in human history. Not only can they beat us in chess,
• 1:30:36
  Speaker 1: in go, but even in the one hundred meter dash,
• 1:30:40
  Speaker 1: and I think they've broken some other world records that
• 1:30:42
  Speaker 1: they are four hundred meters. I think was also broken
• 1:30:45
  Speaker 1: for hundred medas in some sense even tougher because one
• 1:30:50
  Speaker 1: hundred is straight. Here they have to run in kind
• 1:30:52
  Speaker 1: of a circle or parts of a circle, and they
• 1:30:57
  Speaker 1: have to sustain the running for a longer period of time.
• 1:31:00
  Speaker 1: The amazing stuff. All right, I have I know this
• 1:31:04
  Speaker 1: story is going to hurt some of you. You guys
• 1:31:06
  Speaker 1: are going to be in pain because of it. There's
• 1:31:09
  Speaker 1: some good news coming out of you of Mumdani's New York.
• 1:31:12
  Speaker 1: Now it's small, little good news, but so good news.
• 1:31:17
  Speaker 1: The city is putting together a package of more than
• 1:31:21
  Speaker 1: fifty reforms deregulation reforms. They include faster restaurant inspections, streamlined
• 1:31:35
  Speaker 1: outdoor dining approvals, efforts to eliminate redundant permits require merrily
• 1:31:43
  Speaker 1: to serve fozen desserts. For example. Even the socialist mayor
• 1:31:53
  Speaker 1: you know, has in in an effort to you know,
• 1:31:58
  Speaker 1: revive or sustain a New York economy paused to reduce
• 1:32:06
  Speaker 1: regulations and entrepreneurs. He can try to tax the rich
• 1:32:10
  Speaker 1: as much as you want. He can try to play
• 1:32:12
  Speaker 1: around with real estate and try to you know, socialize
• 1:32:15
  Speaker 1: the housing. But when it comes to actual business creation,
• 1:32:18
  Speaker 1: actually running businesses, the solution is the regulation. Even a
• 1:32:22
  Speaker 1: socialist city council and mayor know that. So it's modest.
• 1:32:27
  Speaker 1: It's a lot of the little things, but these are
• 1:32:30
  Speaker 1: things that make a big difference for small businesses. And
• 1:32:34
  Speaker 1: these are the things that can keep businesses in New
• 1:32:37
  Speaker 1: York and these are the things that can increase economic activity.
• 1:32:40
  Speaker 1: So you know, good for good for them for doing this.
• 1:32:44
  Speaker 1: You know, he's also streamlining pervoty for new buildings housing
• 1:32:51
  Speaker 1: because he realizes the supply does matter in housing and
• 1:32:54
  Speaker 1: he wants prices to come down Somewhat. He doesn't know
• 1:33:01
  Speaker 1: it enough to actually look at the economic literature about
• 1:33:05
  Speaker 1: rent control. But you know, let's a nitpick. So this
• 1:33:13
  Speaker 1: modest deregulation doesn't offset the administrations bought an interventionist agenda.
• 1:33:19
  Speaker 1: It's still good news. I'll take it. I'll take whatever
• 1:33:21
  Speaker 1: I can get. So a little bit of the regulation
• 1:33:23
  Speaker 1: going on in America, and of all places, the place
• 1:33:26
  Speaker 1: where it's happening is in New York City. Pretty funny,
• 1:33:33
  Speaker 1: all right, that, my friends, is the news for this Monday,
• 1:33:37
  Speaker 1: August twenty fourth. Thank you for joining me. All right,
• 1:33:42
  Speaker 1: let us shift to our super chat. We've got a
• 1:33:47
  Speaker 1: few questions, not a lot, but a few. We're still
• 1:33:50
  Speaker 1: a little short of our goal. So if those of
• 1:33:54
  Speaker 1: you are able and see value in the show, could
• 1:33:58
  Speaker 1: do some stickers maybe, And if you don't want to
• 1:34:00
  Speaker 1: ask questions a lot of not a lot of questions today,
• 1:34:04
  Speaker 1: that would be great. About one hundred and seventy three
• 1:34:06
  Speaker 1: dollars to cover our second hour, and we're heading towards
• 1:34:10
  Speaker 1: that second hour. Roland did a stick us and thank
• 1:34:12
  Speaker 1: you Roland, and Greg, thank you, and Rand Rand did
• 1:34:20
  Speaker 1: fifty dollars sticker. Thank you, Rand. That's really really I
• 1:34:23
  Speaker 1: appreciate it, really generous. Gaale Exits did stickers and Greg
• 1:34:33
  Speaker 1: and yeah, if there's anybody else out there who could
• 1:34:36
  Speaker 1: do another fifty dollars like Rand, that'll that'll you know,
• 1:34:39
  Speaker 1: three of those will get us to our target basically,
• 1:34:42
  Speaker 1: so that'll that'll be terrific. Okay, let's let's row. Oh yeah,
• 1:34:46
  Speaker 1: I need a I need to tell you about tell
• 1:34:50
  Speaker 1: you about my sponsors that an institute is shifting back.
• 1:34:55
  Speaker 1: You remember the Iron Rand University. Are you AARU shifting
• 1:34:59
  Speaker 1: back to AI. You're starting in the fall. There's going
• 1:35:02
  Speaker 1: to be a three semester course taught by Uncong Gotta,
• 1:35:05
  Speaker 1: designed and taught by Uncle Gote that it's going to
• 1:35:08
  Speaker 1: be about the philosophy of objectivism. So this is an
• 1:35:10
  Speaker 1: intense course, a year long course on objectivism. I wish
• 1:35:16
  Speaker 1: I was young and could take it from scratch. I
• 1:35:18
  Speaker 1: wish I had the time to take it today. I'm
• 1:35:20
  Speaker 1: sure I would learn a lot from it today. On
• 1:35:22
  Speaker 1: Caore is amazing. His knowledge and his insight into objectivism
• 1:35:26
  Speaker 1: is phenomenal, and so I highly highly encourage you to
• 1:35:30
  Speaker 1: check out on call got his course and check out
• 1:35:34
  Speaker 1: generally the uh the ar U uh just go to
• 1:35:40
  Speaker 1: just go to the imand the aar U dog You're
• 1:35:45
  Speaker 1: gon also check it out in Ian's slash ybs. There
• 1:35:48
  Speaker 1: will be links to ARU. But but yeah, I'm teaching
• 1:35:53
  Speaker 1: a course in Western civilization. And if you're a student,
• 1:35:58
  Speaker 1: if you're a student, you'll get basically you'll get tuition
• 1:36:03
  Speaker 1: free and some of you will actually get five hundred
• 1:36:09
  Speaker 1: dollars cash, like just to come and study at the
• 1:36:14
  Speaker 1: Iron Universe at AARU. I'm not supposed to call it
• 1:36:17
  Speaker 1: Iron University. For accreditation reason, so AARU. So check it out, guys,
• 1:36:22
  Speaker 1: particularly if you're if you're interested in not if you're young,
• 1:36:26
  Speaker 1: if you want to be a graded student. Graded students
• 1:36:30
  Speaker 1: pay no tuition. Only auditors pay tuition. Graded students paid
• 1:36:36
  Speaker 1: no tuition, So be graded student. It's even better to
• 1:36:41
  Speaker 1: be grated because then you really learned. You do the homewooks,
• 1:36:44
  Speaker 1: you you test yourself, you challenge yourself at hey, Anka
• 1:36:48
  Speaker 1: is a tough grader. There's no there's no only a's
• 1:36:52
  Speaker 1: and b's in this class. You're going to get c's
• 1:36:54
  Speaker 1: and d's and maybe even fs, so you better step up.
• 1:36:58
  Speaker 1: But I think it'super exciting and I really hope a
• 1:37:01
  Speaker 1: lot of you take this, particularly anybody out there who
• 1:37:04
  Speaker 1: wants to be an intellectual one day or really interested
• 1:37:07
  Speaker 1: in studying the philosophy, this is the course to take.
• 1:37:11
  Speaker 1: You know, in addition to Lennon peakups courses and reading Iman,
• 1:37:16
  Speaker 1: are you UNCU got this curse and objectivism? That's where
• 1:37:19
  Speaker 1: you should be. Alex Epstein is the leading authority on
• 1:37:24
  Speaker 1: energy on data centers right now, and if you want
• 1:37:28
  Speaker 1: to learn about what's going on with data, say, if
• 1:37:29
  Speaker 1: you want to stay up to date, on what is
• 1:37:31
  Speaker 1: going on with data centers and maybe how you can
• 1:37:33
  Speaker 1: get involved in defending data centers. Follow Alex, Alex Epstin
• 1:37:37
  Speaker 1: do subsect dot com, Alex Epslin does substct dot com.
• 1:37:40
  Speaker 1: I'm going to try to get Alex on the show
• 1:37:42
  Speaker 1: to talk about his efforts with regard to data centers.
• 1:37:46
  Speaker 1: Hand a Shot, Hander, Shout Wealth dot com, slash ybs,
• 1:37:50
  Speaker 1: hand a shot with two t's hendershout Wealth dot com,
• 1:37:53
  Speaker 1: slash ybs. They offer products that can really help you
• 1:37:57
  Speaker 1: defer and maybe even eliminate your against taxes. Check them
• 1:38:01
  Speaker 1: out hand a Shot well dot com, slash ybs, and
• 1:38:05
  Speaker 1: also my interview with Robert Hendershot in the playlists on
• 1:38:09
  Speaker 1: Responsors and then finally Defenders of Capitalism dot Com. Defenders
• 1:38:16
  Speaker 1: of Capitalism dot com. Michael Williams's program which I've been
• 1:38:20
  Speaker 1: involved in from the beginning, and right now you're going
• 1:38:24
  Speaker 1: to get a week to apply for Leadership Program of
• 1:38:27
  Speaker 1: the Rockies. This amazing program that teaches you how to
• 1:38:31
  Speaker 1: communicate these ideas, how to be a you know, how
• 1:38:34
  Speaker 1: to be an activist in your community, how to get
• 1:38:36
  Speaker 1: involved in politics, and you know, Michael is fantastic Leadership
• 1:38:42
  Speaker 1: Program of the Rockies is fantastic. And I teach at
• 1:38:46
  Speaker 1: Leadership Program at the Rockies every year and have been
• 1:38:49
  Speaker 1: teaching this since two thousand and three. A number of
• 1:38:51
  Speaker 1: objectivists teach at Leadership Program of the Rockies. So check
• 1:38:55
  Speaker 1: it out. Leadership Program dot og, Leadership Program dot og.
• 1:39:00
  Speaker 1: And you know it's it's time consuming. It's it's because
• 1:39:05
  Speaker 1: it's it's it's real, it actually has content and it
• 1:39:14
  Speaker 1: requires work. And if you got a leadership program dot org,
• 1:39:19
  Speaker 1: you will find an application. You've only got a week
• 1:39:22
  Speaker 1: to do it right for the twenty twenty seven class,
• 1:39:26
  Speaker 1: which starts in October, And it's it's once a month
• 1:39:30
  Speaker 1: on a Friday, second Friday every month, a full day
• 1:39:35
  Speaker 1: somewhere in Denver. Every every week. It's in a different
• 1:39:37
  Speaker 1: location in Default in Denver, Colorado, and it's intense all
• 1:39:41
  Speaker 1: day lectures and workshops and working on your communication skills.
• 1:39:47
  Speaker 1: And if you sign up and you get accepted, you
• 1:39:51
  Speaker 1: do have to get accepted, then I will be there
• 1:39:55
  Speaker 1: in November. I'll be teaching there November, so I'll see
• 1:39:57
  Speaker 1: you in November. So check it out, check it out.
• 1:40:00
  Speaker 1: It's it's definitely worth it's definitely worth doing if you're
• 1:40:06
  Speaker 1: if you're inclined in any way towards activism, and you
• 1:40:10
  Speaker 1: have the time, it is redded it's time consuming. One day,
• 1:40:14
  Speaker 1: one day a month just dedicated to this, and if
• 1:40:16
  Speaker 1: you have to fly in from from somewhere else, maybe
• 1:40:20
  Speaker 1: it's a day and a half, all right, And of course, yeah,
• 1:40:26
  Speaker 1: all right, so let's check out our super chat. I'll
• 1:40:32
  Speaker 1: remind you, uh, it's incredibly valuable to me, to me,
• 1:40:38
  Speaker 1: to the Iran Book Show, to the show, everything we
• 1:40:40
  Speaker 1: do here, the monthly contributors, the steady monthly contributions that
• 1:40:47
  Speaker 1: come in on Patreon and on PayPal. So highly encourage
• 1:40:50
  Speaker 1: those of you who are not here alive, who do
• 1:40:52
  Speaker 1: not do a lot of super chats and and stickers,
• 1:40:55
  Speaker 1: to consider going to Patreon dot com or to PayPal
• 1:40:58
  Speaker 1: dot com, putting in your on book show and becoming
• 1:41:00
  Speaker 1: monthly supporters. You make this show possible. And at ten
• 1:41:05
  Speaker 1: dollars a month, you get a ad free version of
• 1:41:08
  Speaker 1: the podcast. At twenty five, you get a participate on
• 1:41:12
  Speaker 1: the panel every month when I do the AMA. For
• 1:41:16
  Speaker 1: two hundred and fifty, you get a one on one
• 1:41:18
  Speaker 1: meeting with me by zoom in every three months. For
• 1:41:26
  Speaker 1: five hundred, you get it every month, and for a thousand,
• 1:41:29
  Speaker 1: I'll do face to face with you in person. We'll
• 1:41:33
  Speaker 1: go to dinner or something. So please consider supporting the
• 1:41:38
  Speaker 1: Euron Bookshow at one of those levels and enjoining kind
• 1:41:41
  Speaker 1: of the monthly supporters of the show. All right, we're
• 1:41:44
  Speaker 1: still one hundred and seventy three short of the five
• 1:41:46
  Speaker 1: hundred we need to cover our second hour, so please
• 1:41:49
  Speaker 1: consider coming in with a question, a sticker or something.
• 1:41:54
  Speaker 1: It would be very very very much appreciated. But let's
• 1:41:58
  Speaker 1: start with Michael, who's already for two hundred dollars into
• 1:42:02
  Speaker 1: the show. So thank you, Michael. Michael's probably the leader
• 1:42:07
  Speaker 1: on the superchat board in terms of providing the most
• 1:42:11
  Speaker 1: support through superchat to the Iran Book Show, So thank you,
• 1:42:13
  Speaker 1: Thank you as always, Michael. Michael says, as a homeowner,
• 1:42:18
  Speaker 1: do you have a right to place hidden cameras in
• 1:42:20
  Speaker 1: your bathroom and record guests as they are on the
• 1:42:23
  Speaker 1: toilet provided you don't share the video to the public.
• 1:42:27
  Speaker 1: Why is it okay legally to play hidden cameras in
• 1:42:29
  Speaker 1: your living room but not your bathroom? I mean, I
• 1:42:39
  Speaker 1: think that the reason would be that there is you know,
• 1:42:45
  Speaker 1: broadly in our culture, in our all an expectation of
• 1:42:48
  Speaker 1: privacy in somebody's bathroom. Nobody is going to go into
• 1:42:52
  Speaker 1: the bathroom with you when you visit somebody's house. But
• 1:42:56
  Speaker 1: people hung around the kitchen together, they hang around living
• 1:43:00
  Speaker 1: room together. And if you're babysitting a child these days,
• 1:43:06
  Speaker 1: I think there's an expectation that there's some monitoring of
• 1:43:10
  Speaker 1: your behavior towards the child that's going on. And again
• 1:43:14
  Speaker 1: that doesn't involve the bathroom where your bathroom. Now it
• 1:43:18
  Speaker 1: might evolve a camera in the child's bathroom. And again
• 1:43:24
  Speaker 1: I believe that the right approach to all of that
• 1:43:26
  Speaker 1: is to let and I think maybe that would be
• 1:43:31
  Speaker 1: the legal approach, would be to let people know that
• 1:43:34
  Speaker 1: cameras exist. If you rent up AB and B and
• 1:43:39
  Speaker 1: they have cameras in it, they are expected by AB
• 1:43:42
  Speaker 1: and B rules to let you know. Otherwise your expectation
• 1:43:49
  Speaker 1: is they're no cameras. So I think you should let
• 1:43:55
  Speaker 1: people know. But even if you don't, you certainly can't film.
• 1:44:03
  Speaker 1: Shouldn't film in places where people expect that privacy. Again,
• 1:44:07
  Speaker 1: they don't expect that privacy in your living room. Everything
• 1:44:11
  Speaker 1: they do and say in their living room, they're doing
• 1:44:13
  Speaker 1: and saying in front of you, I mean, I'm willing
• 1:44:17
  Speaker 1: to be challenged on this. Maybe there is an expectation
• 1:44:24
  Speaker 1: of privacy, but I don't think so. It's my house,
• 1:44:29
  Speaker 1: so I'm willing to hear counterarguments. Right, So there's different
• 1:44:34
  Speaker 1: There's definitely a difference between a bathroom, a bathroom that
• 1:44:37
  Speaker 1: the guest uses versus a child's bathroom there only a
• 1:44:41
  Speaker 1: child uses in terms of expectation of privacy versus a
• 1:44:48
  Speaker 1: living room. Michael, do you find New York City to
• 1:44:54
  Speaker 1: be more impressive than any European city while Chinese cities
• 1:44:58
  Speaker 1: are more impressive than New York in most American cities, Yes,
• 1:45:02
  Speaker 1: I think that's right. New York City is more impressive
• 1:45:04
  Speaker 1: than any in terms of just the skyscrapers, the energy,
• 1:45:09
  Speaker 1: than any European city. No European city comes close. There's
• 1:45:13
  Speaker 1: just no real skyscrapers in European cities. But there's no
• 1:45:18
  Speaker 1: question Chinese cities a more impressive, particularly Hong Kong, Shanghai.
• 1:45:23
  Speaker 1: Wums you in terms of skyscrapers, particularly Hong Kong and
• 1:45:27
  Speaker 1: Shanghai and maybe some other Chinese cities I'm not familiar with.
• 1:45:34
  Speaker 1: Singapore is impressive I'm trying to think about the places.
• 1:45:40
  Speaker 1: I mean, Dubai supposedly is incredibly impressive, but it's like
• 1:45:45
  Speaker 1: a modern I mean, Hong Kong is like a modern
• 1:45:47
  Speaker 1: New York. Shanghai is like a modern New York. It's
• 1:45:49
  Speaker 1: what New York would be if they still have the
• 1:45:52
  Speaker 1: energy and the spirit they had in the twenties when
• 1:45:55
  Speaker 1: they been in the thirties when they built New York right,
• 1:45:59
  Speaker 1: and they were using modern architecture to do it. So yes,
• 1:46:05
  Speaker 1: I think that's right. But there's no European city. I mean,
• 1:46:09
  Speaker 1: there are no tall buildings in here in Barcelona, there's
• 1:46:13
  Speaker 1: no real tall buildings in London, Paris nothing, I mean
• 1:46:18
  Speaker 1: a few tall buildings are nothing, no skyscrapers. I can't
• 1:46:22
  Speaker 1: think of it a European city that has skyscrapers. It
• 1:46:24
  Speaker 1: just doesn't exist. It's just not part of their ambition
• 1:46:29
  Speaker 1: and the way they think about the world. Michael, what
• 1:46:35
  Speaker 1: are the chances Blake shows becomes the charts, becomes off
• 1:46:41
  Speaker 1: the charts famous and it's technology revolutionizes mankind and then
• 1:46:45
  Speaker 1: he publicly credits objectivism. I mean, you know, I don't
• 1:46:49
  Speaker 1: think it's technology is going to revolutionize mankind like Ai
• 1:46:53
  Speaker 1: has the potential to do. It'll revolutionize transportation. Air transportation
• 1:46:59
  Speaker 1: certainly going to revolutionize mankind, so let's not exaggerate it.
• 1:47:04
  Speaker 1: But I think there's a likelihood that he becomes pretty famous.
• 1:47:11
  Speaker 1: I don't know about off the charts famous, but famous.
• 1:47:17
  Speaker 1: And I think there's a really good chance that he
• 1:47:19
  Speaker 1: credits publicly credits objectivism. I don't think he's hiding objectivism.
• 1:47:23
  Speaker 1: He's not out there promoting it because I mean, he
• 1:47:26
  Speaker 1: starts to raise a lot of money, he starts to
• 1:47:28
  Speaker 1: prove himself. It's still it's still a work in progress
• 1:47:31
  Speaker 1: right the company. But I think given his trajectory, that
• 1:47:35
  Speaker 1: he will credit at least at least provide some credit
• 1:47:40
  Speaker 1: to objectivism and at least declare himself an objectivist. I
• 1:47:44
  Speaker 1: think that is reasonable to assume, and I think that
• 1:47:46
  Speaker 1: would help objectivism a lot, and more businessmen like that
• 1:47:51
  Speaker 1: would help it even more, particularly given how many of
• 1:47:55
  Speaker 1: the businessmen who are in the area that could revolutionize
• 1:47:58
  Speaker 1: man can, like Ai bud of statist theomongering, I don't
• 1:48:04
  Speaker 1: know socialists, Mary Eleen, really great show. Thanks thank you, Marilyn,
• 1:48:11
  Speaker 1: really appreciate it. Richard voting with my wallet for financial
• 1:48:15
  Speaker 1: economics topics. I like today's insights excellent. Thank you, Richard.
• 1:48:20
  Speaker 1: I will continue to do them. I'm glad you liked them. Michael.
• 1:48:24
  Speaker 1: Another question for Michael, are there any Milton Friedman type
• 1:48:28
  Speaker 1: figures in China and Japan well respected free market intellectuals.
• 1:48:33
  Speaker 1: They weren't China. I mean, they've been suppressed over the
• 1:48:39
  Speaker 1: last seven eight years, But as late as twenty eighteen
• 1:48:43
  Speaker 1: there were people, I don't know Milton Friedman in that level,
• 1:48:46
  Speaker 1: but certainly well known public intellectuals writing in the Chinese
• 1:48:50
  Speaker 1: news papers arguing for free markets. Yes, they weren't China.
• 1:48:55
  Speaker 1: I don't know about Japan. I don't know them. If
• 1:48:58
  Speaker 1: they were in Japan, I met some of them in China,
• 1:49:01
  Speaker 1: so they were in China. But I think they've all
• 1:49:03
  Speaker 1: been suppressed since twenty eighteen. Cia Villas Fariza Karaia's take
• 1:49:11
  Speaker 1: on the Odyssey sounds like Tom Holland's Dominion, reducing Greek
• 1:49:16
  Speaker 1: values to war conquest and crediting Christian egalitarianism for the Enlightenment.
• 1:49:22
  Speaker 1: Can you review his video? Yeah, I'll look at I
• 1:49:26
  Speaker 1: look for it. That might be a good idea, I'll
• 1:49:34
  Speaker 1: I will look for his review. But yeah, I mean,
• 1:49:38
  Speaker 1: it makes sense because it makes sense because what's his name?
• 1:49:48
  Speaker 1: Where did I put that? I can't find it? Oh right,
• 1:50:00
  Speaker 1: It makes sense because of the filmmaker's orientation towards making
• 1:50:07
  Speaker 1: a kind of a Christian movie and moving away from
• 1:50:12
  Speaker 1: kind of the more Greek values that existed at the time.
• 1:50:18
  Speaker 1: And and and you know, and so and I think
• 1:50:23
  Speaker 1: I think they definitely see in a variety of different
• 1:50:28
  Speaker 1: ways Christianity morally is an improvement over Greece. And look,
• 1:50:34
  Speaker 1: you know, there's nothing virtuous about Bronze Age Greece, but
• 1:50:39
  Speaker 1: there's something different about classical Greece and the virtues of
• 1:50:43
  Speaker 1: classical Greece. Uh And and Christiansy is not an improvement
• 1:50:47
  Speaker 1: over that. Rob, your discussion of bonds and finance is
• 1:50:55
  Speaker 1: always informative and superbly honest. Thank you. I really appreciate that.
• 1:51:00
  Speaker 1: I'm glad you enjoyed it. Let's see, Jason, remind us
• 1:51:05
  Speaker 1: about the tricks Clinton or was it green Span or
• 1:51:08
  Speaker 1: Uben played to invert the yield curve in the nineteen nineties.
• 1:51:12
  Speaker 1: Compared to Besson, they want tricks. Here's the thing about
• 1:51:17
  Speaker 1: what happened in the nineteen nineties, as far as I
• 1:51:20
  Speaker 1: can remember, unless you know of something different. In the
• 1:51:24
  Speaker 1: nineteen nineties, when Clinton proposed hillary Care, which was Obamacare
• 1:51:33
  Speaker 1: on steroids, the yields and bonds went shooting up because
• 1:51:39
  Speaker 1: they recognized that it would involve massive government deficits and
• 1:51:44
  Speaker 1: govermn debt and interstates went and weigh up much higher
• 1:51:48
  Speaker 1: than they are today. And the response of Clinton to
• 1:51:53
  Speaker 1: death was the back off of hillary Care. And at
• 1:51:58
  Speaker 1: the time, the idea was that the bond vigilantes that
• 1:52:04
  Speaker 1: every time Clinton would propose something there was bad for markets,
• 1:52:08
  Speaker 1: there would increase debt, that interestrates would go up, and
• 1:52:15
  Speaker 1: Clinton would back down. And James Carville famously said at
• 1:52:22
  Speaker 1: the time, basically expressing this idea, that the bond market
• 1:52:26
  Speaker 1: was running the American government and it wasn't just in America,
• 1:52:30
  Speaker 1: this was happening all over the world, that financial markets,
• 1:52:33
  Speaker 1: currency markets, and bond markets were basically driving governments to
• 1:52:38
  Speaker 1: do the right thing, the right thing being the more
• 1:52:41
  Speaker 1: free market thing. James Carville said that he was reborn again.
• 1:52:47
  Speaker 1: He would prefer to be born as the bond market
• 1:52:51
  Speaker 1: rather than as president or something like that, especially in
• 1:52:55
  Speaker 1: the fact that the bond market was perceived as more
• 1:52:58
  Speaker 1: powerful than the president. Noticed that at the time, the
• 1:53:02
  Speaker 1: response to the bond market was not to try to
• 1:53:05
  Speaker 1: manipulate the yield. Cook, the response to the market the
• 1:53:09
  Speaker 1: bond market was to reduce spending. And indeed, the last
• 1:53:12
  Speaker 1: time the United States ran a silplus was under Bill
• 1:53:17
  Speaker 1: Clinton of all presidents in the year two thousand, right,
• 1:53:24
  Speaker 1: and a lot of that had to do with capital
• 1:53:25
  Speaker 1: gains taxes. But Clinton, with ding Rich speak of the House, together,
• 1:53:33
  Speaker 1: they ran a relatively speaking responsible budget relative to everything
• 1:53:39
  Speaker 1: that came after that. It didn't grow as a percentage GDP.
• 1:53:43
  Speaker 1: It didn't grow, and that's pretty impressive because after that
• 1:53:48
  Speaker 1: it grows. So you got to give Clinton credit. Clinton
• 1:53:54
  Speaker 1: and Jimmy Carter. Funnily enough, Cook recently, ro Kana was
• 1:54:02
  Speaker 1: on Coleman Hughes's show and at one point mentioned that
• 1:54:06
  Speaker 1: his economic agenda is similar to Catholic social thought. Yeah,
• 1:54:10
  Speaker 1: and he's become he was more of a moderate up
• 1:54:15
  Speaker 1: until recently, and he's become a spokesman of the fall left.
• 1:54:19
  Speaker 1: He's become more anti Israel, and now he's also become
• 1:54:23
  Speaker 1: economically fall left. So he's moved way to the left,
• 1:54:27
  Speaker 1: but way to the left is Catholic. The Catholics are leftists.
• 1:54:32
  Speaker 1: Most of the popes know that, not all of them.
• 1:54:35
  Speaker 1: Most of them know that. I mean, social justice is
• 1:54:40
  Speaker 1: a concept that comes from Cathosis. All right, Raphael from Lisbon, No,
• 1:54:51
  Speaker 1: he's in Soul, South Korea. He's on vacation in Soul,
• 1:54:54
  Speaker 1: South Korea. I hope you're having a great time with
• 1:54:56
  Speaker 1: your friend, he says. Just watch Odyssey at full imax.
• 1:55:01
  Speaker 1: An incredible experience. I'm glad you enjoyed it. It is
• 1:55:04
  Speaker 1: an incredible experience. It's worth watching with all the flaws
• 1:55:07
  Speaker 1: that I mentioned during my review of it. The Ron says,
• 1:55:17
  Speaker 1: the Atalana, the Atalana was just found. Can you comment
• 1:55:22
  Speaker 1: to an atalana incident? Was it right by being Korean
• 1:55:25
  Speaker 1: to sink it? So? I can't remember the exact I
• 1:55:29
  Speaker 1: can't reamer the exact timing of this right, But at
• 1:55:34
  Speaker 1: the very birth of Israel, there was the challenge was
• 1:55:42
  Speaker 1: uniting three.
• 1:55:45
  Speaker 5: Militias into a new idea of the Israeli Defense Force
• 1:55:51
  Speaker 5: and an army, one army that would represent the Israeli states.
• 1:55:57
  Speaker 1: And at the time there were three. There was the Iguan,
• 1:56:00
  Speaker 1: which was the center left, the leftist kind of mainstream
• 1:56:08
  Speaker 1: military organization of the mainstream leftist who were going to
• 1:56:13
  Speaker 1: run the government because they were the majority in Israel
• 1:56:15
  Speaker 1: at the time. And this is nineteen forty eight. But
• 1:56:18
  Speaker 1: I can't reb when in forty eight and then there
• 1:56:22
  Speaker 1: was the the Lech and the God the I forget
• 1:56:29
  Speaker 1: the third group, the one I can't remember his name
• 1:56:32
  Speaker 1: is was led by Menachem Begen, And then there was
• 1:56:36
  Speaker 1: and they were they were more radical in attacking the
• 1:56:40
  Speaker 1: British and attacking the Arab population of Israel, and which
• 1:56:45
  Speaker 1: was even more right wing. Then I can't believe that
• 1:56:50
  Speaker 1: I can't remember the name. Maybe somebody online will remind me,
• 1:56:54
  Speaker 1: maybe run will remind me of the name of being
• 1:56:59
  Speaker 1: Ofagan's outfit. Anyway, Benguyon, who was the really leader and
• 1:57:06
  Speaker 1: would become the first Prime Minister of Israel, was trying
• 1:57:10
  Speaker 1: to unify all the military elements because he knew that
• 1:57:13
  Speaker 1: the battle that was coming was against seven Arab armies
• 1:57:17
  Speaker 1: and Israel needed unity. It couldn't survive if it had
• 1:57:21
  Speaker 1: three different military forces, each fighting its own battles and
• 1:57:26
  Speaker 1: not unified. Bagan had brought in the Atalana, this boat
• 1:57:33
  Speaker 1: filled with weapons for his militia, for his military organization,
• 1:57:41
  Speaker 1: and rather than allowing the weapons to reach the shore
• 1:57:49
  Speaker 1: and to be taken by Began's militia. Being Guyon decided
• 1:57:55
  Speaker 1: to sink the ship, to blow it up, and to
• 1:57:58
  Speaker 1: sink it off the coast of basically off the coast
• 1:58:01
  Speaker 1: of Tel aviv Uh and to prevent these weapons, which
• 1:58:07
  Speaker 1: ultimately could have been used by Israel against his enemies,
• 1:58:11
  Speaker 1: to reach in order to force Began to in a sense,
• 1:58:17
  Speaker 1: to unified his military organization with you going to form
• 1:58:24
  Speaker 1: a unified military to fight the Arabs, and look, it's
• 1:58:28
  Speaker 1: one of those really really tough decisions you have to
• 1:58:31
  Speaker 1: make in the heat of war, and it was probably
• 1:58:34
  Speaker 1: the right decision. Now, I don't have all the information
• 1:58:37
  Speaker 1: he had. I don't have any I don't know what
• 1:58:39
  Speaker 1: Began was thinking. I don't know if this really did
• 1:58:43
  Speaker 1: change Began's mind. Began did cut to the negotiating table
• 1:58:47
  Speaker 1: and did cut a deal in there, and there was
• 1:58:50
  Speaker 1: a unified military formed after this. The thank you the
• 1:58:56
  Speaker 1: its was Began's military unit Excel and then the let
• 1:59:01
  Speaker 1: But would he have done it anyway and then is
• 1:59:03
  Speaker 1: or would have had better weapons or more weapons, I
• 1:59:06
  Speaker 1: don't know. Benguyon at that point in time didn't believe
• 1:59:10
  Speaker 1: he could take the risk. So I have to say,
• 1:59:14
  Speaker 1: with everything I know, which is not that much, Yeah,
• 1:59:17
  Speaker 1: I think that makes sense. It was more important at
• 1:59:21
  Speaker 1: that point to unify than to get more weapons, if
• 1:59:27
  Speaker 1: that makes sense, Jennifer. Have you heard of doctor Idds.
• 1:59:34
  Speaker 1: He is a British m d nutritionist and does videos
• 1:59:37
  Speaker 1: debunking the latest fearmongering nutrition claims. He seems very knowledgeable
• 1:59:42
  Speaker 1: and rational to me. No, I haven't heard of him,
• 1:59:45
  Speaker 1: but I will look him up. Doctor IDs idz interesting cool,
• 1:59:50
  Speaker 1: Always looking for new stuff like that. Andrew, in light
• 1:59:55
  Speaker 1: of your comments yesterday about having no desire to be
• 2:00:00
  Speaker 1: in Israel, even to visit, well, I exaggerated a little bit.
• 2:00:03
  Speaker 1: I like visiting. I enjoy being Israel for short periods
• 2:00:08
  Speaker 1: of time, like you know, a week. Would you say
• 2:00:11
  Speaker 1: you have a personal antipathy towards it? Are you just apathetic?
• 2:00:15
  Speaker 1: I mean I exaggerated. I'm not I don't have an
• 2:00:19
  Speaker 1: antipathy and I'm not apathetic. I like going to Israelsia's
• 2:00:23
  Speaker 1: short visits. For short visits Israel, particularly now as an
• 2:00:30
  Speaker 1: energy of vibrancy. I love seeing the new skyscrapers go up.
• 2:00:33
  Speaker 1: Televiv is an exciting city to look at. I like
• 2:00:37
  Speaker 1: Haypha's kind of laid back, and I like visiting Haifah.
• 2:00:41
  Speaker 1: I mean visiting right now has a lot to do
• 2:00:43
  Speaker 1: with family and particularly, you know, my mother just died
• 2:00:47
  Speaker 1: and my father's ninety one and not in great health,
• 2:00:52
  Speaker 1: so it's most associated with all of that. But Israel
• 2:00:56
  Speaker 1: is a place. Yeah, if it was short visits, I
• 2:01:00
  Speaker 1: would want to go. I would go there, but I'm
• 2:01:04
  Speaker 1: not excited. There's still something about Israel that's very collectivistic
• 2:01:10
  Speaker 1: and oppressive to me. I know a lot of people
• 2:01:12
  Speaker 1: don't see that, and that's fine, but to me, it's
• 2:01:15
  Speaker 1: that way, and I don't find I don't shay Nikos's
• 2:01:19
  Speaker 1: longing for home for where I grew up, but I
• 2:01:22
  Speaker 1: don't have any nostalgia to where I grew up. I like,
• 2:01:26
  Speaker 1: you know, going to the places where I used to
• 2:01:29
  Speaker 1: hang out and just seeing them and yeah, but it
• 2:01:31
  Speaker 1: doesn't have deep meanings for me or deep resonance for me.
• 2:01:36
  Speaker 1: I'm quite happy going somewhere new. So anyway, for what
• 2:01:40
  Speaker 1: it's worth, Oliver, how hard is it to get into
• 2:01:47
  Speaker 1: the new program. I have taken a course in ARU
• 2:01:51
  Speaker 1: and done the coaching and liked it. Any tips to
• 2:01:54
  Speaker 1: increase to get in, I don't think. I don't think
• 2:01:57
  Speaker 1: it's hard to get in at all. As long as
• 2:02:01
  Speaker 1: you're willing to be graded, I think you're in. I
• 2:02:04
  Speaker 1: think the hard part is to get the scholarship, and
• 2:02:06
  Speaker 1: I don't know how hard that is. The scholarship is
• 2:02:09
  Speaker 1: five hundred dollars in addition, but the tuition is free
• 2:02:13
  Speaker 1: to anybody who's willing to be graded. So I would
• 2:02:17
  Speaker 1: definitely go to the website, check it out and see
• 2:02:21
  Speaker 1: if what I'm saying is true, and sign up and
• 2:02:25
  Speaker 1: do it. If you enjoyed it in the past, then
• 2:02:27
  Speaker 1: definitely do it. Definitely do it. Hunter Charles Freeman has
• 2:02:35
  Speaker 1: a book called Holy Bones, Holy Dust about how Catholic
• 2:02:40
  Speaker 1: relics shape medieval history. Anyone doubting the absurdity of Catholic
• 2:02:45
  Speaker 1: thought ought to give it a read. Yeah, that sounds interesting,
• 2:02:49
  Speaker 1: I'll read it. I mean, yes, the amount of emphasis
• 2:02:54
  Speaker 1: and focus on relics and on what do you call
• 2:02:58
  Speaker 1: when you go to see the relict on God? The
• 2:03:02
  Speaker 1: word escape my mind. But anyway in Patholicism is just astounding,
• 2:03:07
  Speaker 1: and it's not like Protestantism is a vast improvement in
• 2:03:12
  Speaker 1: many ways, it's worse. All right, guys, thank you, thank
• 2:03:17
  Speaker 1: you to all the super chatters, really really really appreciated.
• 2:03:21
  Speaker 1: Thank you to all the listeners. I will see you
• 2:03:23
  Speaker 1: again tomorrow. They will not be a show on Wednesday.
• 2:03:27
  Speaker 1: I think there won't be a show on Wednesday. Maybe
• 2:03:32
  Speaker 1: I'll try to sneak one in. I don't know. There
• 2:03:34
  Speaker 1: won't be a show on Thursday for sure, because I'm
• 2:03:36
  Speaker 1: at a wedding Friday. No, so Thursday, Friday, No, I'll
• 2:03:40
  Speaker 1: try to do a show Wednesday. Maybe a show Saturday. No,
• 2:03:45
  Speaker 1: so Sunday because I'm giving a talk in Israel. Maybe Monday,
• 2:03:51
  Speaker 1: and then Tuesday and flying. We'll get back on schedule
• 2:03:53
  Speaker 1: on Wednesday the following week. All right, Andrew asks, thank you, Andrew,
• 2:03:59
  Speaker 1: fifty dollars question, Really appreciate it. Donnie, who asked if
• 2:04:02
  Speaker 1: rand left Russia in fear, paraphrasing in total disdain. It's
• 2:04:07
  Speaker 1: an ugly I mean, this is what she said, in
• 2:04:11
  Speaker 1: total disdain, not fear, right, it's an ugly mystical country.
• 2:04:16
  Speaker 1: Donnih questioned Russian's mysticism. She explained its form was materialistic.
• 2:04:22
  Speaker 1: They didn't believe in man's soul. She she took fascinating angles. Yes, absolutely,
• 2:04:29
  Speaker 1: I mean she viewed materialism as a mystical ideology, that
• 2:04:36
  Speaker 1: Marxism as mystical as as you know, and to the
• 2:04:41
  Speaker 1: extent that the Russians believe in a soul. It's a
• 2:04:43
  Speaker 1: very very dark soul and and predetermined, and that sense
• 2:04:47
  Speaker 1: is materialistic. So yes, you know, she had these amazing
• 2:04:54
  Speaker 1: insights that combined kind of psychological elements and philos sophical
• 2:05:00
  Speaker 1: elements and being able to look into kind of the
• 2:05:03
  Speaker 1: soul of an individual or the soul of a culture.
• 2:05:06
  Speaker 1: I mean, cultures don't have souls, but kind of the
• 2:05:09
  Speaker 1: sense of life of a culture with the kind of
• 2:05:12
  Speaker 1: reflection of the individual soul in a culture is truly astounding.
• 2:05:18
  Speaker 1: Thank you, Edward, really appreciate it. All right, guys, I
• 2:05:22
  Speaker 1: will see you tomorrow. Bye, everybody,