Every Major System Is Breaking at the Same Time — A Tech Insider Balaji Maps What Comes Next

America doesn't exist. There's blue America doesn't exist. There's blue America and red America and tech America America and red America and tech America America and red America and tech America and all these different subtribes within and all these different subtribes within and all these different subtribes within it. The word American is like the word it. The word American is like the word it. The word American is like the word Korean. Yo, you're saying something Korean. Yo, you're saying something Korean. Yo, you're saying something here. here. here. >> Digital AI disrupts Democrat jobs and >> Digital AI disrupts Democrat jobs and >> Digital AI disrupts Democrat jobs and physical AI disrupts Republican jobs. physical AI disrupts Republican jobs. physical AI disrupts Republican jobs. Democrats destroyed democracy in Democrats destroyed democracy in Democrats destroyed democracy in California. And the reason is California California. And the reason is California California. And the reason is California is a one party state. The mag is a one party state. The mag is a one party state. The mag understanding of the world is that the understanding of the world is that the understanding of the world is that the world is exploiting Americans. a few world is exploiting Americans. a few world is exploiting Americans. a few hundred bucks going to people in Maui, hundred bucks going to people in Maui, hundred bucks going to people in Maui, for example, when their houses burn for example, when their houses burn for example, when their houses burn down, but billions going to Ukraine. down, but billions going to Ukraine. down, but billions going to Ukraine. Walk me through how America breaks apart Walk me through how America breaks apart Walk me through how America breaks apart if this continues. I have obviously been all over your X I have obviously been all over your X feed paying attention to everything that feed paying attention to everything that feed paying attention to everything that you've been talking about and I think you've been talking about and I think you've been talking about and I think you are uniquely qualified to address uh you are uniquely qualified to address uh you are uniquely qualified to address uh what's going on right now. AI is taking what's going on right now. AI is taking what's going on right now. AI is taking a crazy amount of jobs. The entire world a crazy amount of jobs. The entire world a crazy amount of jobs. The entire world order is changing in violent fashion and order is changing in violent fashion and order is changing in violent fashion and what I want to know is what is causing what I want to know is what is causing what I want to know is what is causing all of the disruption and how are the all of the disruption and how are the all of the disruption and how are the smartest people in the world responding smartest people in the world responding smartest people in the world responding to it. AI is highly productivity to it. AI is highly productivity to it. AI is highly productivity increasing and with that productivity increasing and with that productivity increasing and with that productivity increase you can do one of two things. increase you can do one of two things. increase you can do one of two things. You can a cut cost, slim down, flatten You can a cut cost, slim down, flatten You can a cut cost, slim down, flatten the hierarchy and so on and so forth, the hierarchy and so on and so forth, the hierarchy and so on and so forth, right? by essentially um AIing your right? by essentially um AIing your right? by essentially um AIing your operation or B you can keep your operation or B you can keep your operation or B you can keep your operation the same size and then operation the same size and then operation the same size and then increase what it does right so you can increase what it does right so you can increase what it does right so you can get basically more so it's like a get basically more so it's like a get basically more so it's like a productivity bump where you can do more productivity bump where you can do more productivity bump where you can do more with less or you can do more with more with less or you can do more with more with less or you can do more with more uh let me give some specifics right so uh let me give some specifics right so uh let me give some specifics right so if you just take a look at the link that if you just take a look at the link that if you just take a look at the link that I just shared with you right one way I I just shared with you right one way I I just shared with you right one way I think about it is you know Ray think about it is you know Ray think about it is you know Ray Kurzwell's thing of the singularity is Kurzwell's thing of the singularity is Kurzwell's thing of the singularity is here here here >> yep >> yep >> yep Right? So what if you had the plural Right? So what if you had the plural Right? So what if you had the plural aversion? The singularities are here, aversion? The singularities are here, aversion? The singularities are here, right? Meaning there's actually many right? Meaning there's actually many right? Meaning there's actually many curves that are going voof like this, curves that are going voof like this, curves that are going voof like this, you know, up and up and to the right or you know, up and up and to the right or you know, up and up and to the right or down and to the right very fast, right? down and to the right very fast, right? down and to the right very fast, right? And let me show you some of them. Okay, And let me show you some of them. Okay, And let me show you some of them. Okay, so this is like the solar singularity, so this is like the solar singularity, so this is like the solar singularity, which is showing that in Africa, solar which is showing that in Africa, solar which is showing that in Africa, solar power is just absolutely mooning. power is just absolutely mooning. power is just absolutely mooning. >> It's wild. For anybody not looking at >> It's wild. For anybody not looking at >> It's wild. For anybody not looking at their phone right now, these are their phone right now, these are their phone right now, these are straight lines up. Yes. And this is kind straight lines up. Yes. And this is kind straight lines up. Yes. And this is kind of like when smartphones just started of like when smartphones just started of like when smartphones just started working. When smartphones started working. When smartphones started working. When smartphones started working, they just went like, you know, working, they just went like, you know, working, they just went like, you know, the when the economics work, it gets the when the economics work, it gets the when the economics work, it gets taken to its logical conclusion and just taken to its logical conclusion and just taken to its logical conclusion and just suddenly they started getting snapped up suddenly they started getting snapped up suddenly they started getting snapped up in Africa. They solar panels have gotten in Africa. They solar panels have gotten in Africa. They solar panels have gotten so robust, so cheap. They're resistant so robust, so cheap. They're resistant so robust, so cheap. They're resistant to like rocks hitting them and so on. to like rocks hitting them and so on. to like rocks hitting them and so on. You know, the glass doesn't shatter. You know, the glass doesn't shatter. You know, the glass doesn't shatter. They can just work anywhere. You know, They can just work anywhere. You know, They can just work anywhere. You know, I'm a big nuclear guy. I love nuclear, I'm a big nuclear guy. I love nuclear, I'm a big nuclear guy. I love nuclear, but it's really nuclear and solar, not but it's really nuclear and solar, not but it's really nuclear and solar, not ore. And the reason is solar is just so ore. And the reason is solar is just so ore. And the reason is solar is just so easy to set up relative to nuclear. You easy to set up relative to nuclear. You easy to set up relative to nuclear. You can just roll it off the truck or can just roll it off the truck or can just roll it off the truck or whatever. Set it up. You know, it's much whatever. Set it up. You know, it's much whatever. Set it up. You know, it's much much easier permit-wise, everything much easier permit-wise, everything much easier permit-wise, everything wise. It takes up way more horizontal wise. It takes up way more horizontal wise. It takes up way more horizontal space. It's not as scalable. It doesn't space. It's not as scalable. It doesn't space. It's not as scalable. It doesn't provide like, you know, reliable power provide like, you know, reliable power provide like, you know, reliable power in the same way. The batteries are in the same way. The batteries are in the same way. The batteries are improving that. Anyway, point is though, improving that. Anyway, point is though, improving that. Anyway, point is though, solar is real. It's no longer like uh it solar is real. It's no longer like uh it solar is real. It's no longer like uh it can work in Africa without subsidies. can work in Africa without subsidies. can work in Africa without subsidies. Okay. So, that's the solar singularity. Okay. So, that's the solar singularity. Okay. So, that's the solar singularity. Okay. Here's another one. The internet Okay. Here's another one. The internet Okay. Here's another one. The internet dating singularity. You see this one? dating singularity. You see this one? dating singularity. You see this one? Yep. Yep. Yep. >> Right. Essentially, all previous modes >> Right. Essentially, all previous modes >> Right. Essentially, all previous modes of how humans meet have been replaced, of how humans meet have been replaced, of how humans meet have been replaced, right? By just the internet in like 10 right? By just the internet in like 10 right? By just the internet in like 10 20 years, right? Okay. Then here is the 20 years, right? Okay. Then here is the 20 years, right? Okay. Then here is the gold singularity. Just this I'm sure gold singularity. Just this I'm sure gold singularity. Just this I'm sure you've talked about this on your show, you've talked about this on your show, you've talked about this on your show, right? Just gold goingof like this since right? Just gold goingof like this since right? Just gold goingof like this since you know the 2024 election, right? you know the 2024 election, right? you know the 2024 election, right? Basically more than doubling. Um here is Basically more than doubling. Um here is Basically more than doubling. Um here is the robot singularity. Not quite like as the robot singularity. Not quite like as the robot singularity. Not quite like as up and to the right as that, but it's up and to the right as that, but it's up and to the right as that, but it's pretty up and still right. pretty up and still right. pretty up and still right. >> It's impressive. That's right. Um, this >> It's impressive. That's right. Um, this >> It's impressive. That's right. Um, this is like the tariff singularity, so to is like the tariff singularity, so to is like the tariff singularity, so to speak, right? Just what I'm talking speak, right? Just what I'm talking speak, right? Just what I'm talking about are these radical changes like about are these radical changes like about are these radical changes like this, like this, you know, right? this, like this, you know, right? this, like this, you know, right? >> And um then this is like the agent. Now, >> And um then this is like the agent. Now, >> And um then this is like the agent. Now, this one, by the way, is there's a very this one, by the way, is there's a very this one, by the way, is there's a very very interesting comment. You you've very interesting comment. You you've very interesting comment. You you've seen this one which is like the time for seen this one which is like the time for seen this one which is like the time for tasks an agent can do probably, right? tasks an agent can do probably, right? tasks an agent can do probably, right? >> It basically says, "Oh, agents are >> It basically says, "Oh, agents are >> It basically says, "Oh, agents are getting more and more capable. They can getting more and more capable. They can getting more and more capable. They can do more and longer what a human can do do more and longer what a human can do do more and longer what a human can do and so and so forth." After I posted and so and so forth." After I posted and so and so forth." After I posted this, somebody actually in a useful way this, somebody actually in a useful way this, somebody actually in a useful way on X gave me feedback and there's a on X gave me feedback and there's a on X gave me feedback and there's a whole post that I'm going to put up whole post that I'm going to put up whole post that I'm going to put up which says this is actually a flawed uh which says this is actually a flawed uh which says this is actually a flawed uh chart that basically um these this is chart that basically um these this is chart that basically um these this is not actually uh it's not actually a good not actually uh it's not actually a good not actually uh it's not actually a good measure of how long those things can measure of how long those things can measure of how long those things can take, right? It's not a true benchmark. take, right? It's not a true benchmark. take, right? It's not a true benchmark. Um, and it's uh it's something where Um, and it's uh it's something where Um, and it's uh it's something where it's like what a human can do, this it's like what a human can do, this it's like what a human can do, this thing can do in some amount of time, 50% thing can do in some amount of time, 50% thing can do in some amount of time, 50% accuracy rate and so on and so forth. accuracy rate and so on and so forth. accuracy rate and so on and so forth. But it's it's a they think they argue But it's it's a they think they argue But it's it's a they think they argue it's a very tortured benchmark. So I'll it's a very tortured benchmark. So I'll it's a very tortured benchmark. So I'll give that citation afterward. So this give that citation afterward. So this give that citation afterward. So this one big train big grain of salt and it one big train big grain of salt and it one big train big grain of salt and it may actually write a post detailing that may actually write a post detailing that may actually write a post detailing that critique and giving it more critique and giving it more critique and giving it more distribution. Nevertheless, a lot of distribution. Nevertheless, a lot of distribution. Nevertheless, a lot of people think this is happening, right? people think this is happening, right? people think this is happening, right? And I think it's happening to some And I think it's happening to some And I think it's happening to some extent, maybe not quite as much as this. extent, maybe not quite as much as this. extent, maybe not quite as much as this. Why is it happening to some extent? Why is it happening to some extent? Why is it happening to some extent? Well, clearly you and I have used Claude Well, clearly you and I have used Claude Well, clearly you and I have used Claude co-work. co-work. co-work. Clearly, it can do more tasks for longer Clearly, it can do more tasks for longer Clearly, it can do more tasks for longer than it could in 2022. than it could in 2022. than it could in 2022. >> Yeah. I always ag the the on the ground reality of using the the on the ground reality of using AI is startling. AI is startling. AI is startling. >> Yes, that's right. It's so so the >> Yes, that's right. It's so so the >> Yes, that's right. It's so so the there's an argument of this graph. there's an argument of this graph. there's an argument of this graph. There's a counter-argument that that uh There's a counter-argument that that uh There's a counter-argument that that uh critiques the numbers in this graph and critiques the numbers in this graph and critiques the numbers in this graph and the benchmarks. There's a counter the benchmarks. There's a counter the benchmarks. There's a counter counter argument which is it definitely counter argument which is it definitely counter argument which is it definitely has been increasing, right? So how much has been increasing, right? So how much has been increasing, right? So how much is TVD? So let's at least say there's is TVD? So let's at least say there's is TVD? So let's at least say there's something there. Fine. Then this is not something there. Fine. Then this is not something there. Fine. Then this is not quite uh this is kind of what you were quite uh this is kind of what you were quite uh this is kind of what you were talking about not quite a singularity talking about not quite a singularity talking about not quite a singularity but certainly a downward slump right but certainly a downward slump right but certainly a downward slump right over here right and you can see over here right and you can see over here right and you can see something like this for religiosity is something like this for religiosity is something like this for religiosity is also you know collapsed right. Um this also you know collapsed right. Um this also you know collapsed right. Um this is a big one which is the gender is a big one which is the gender is a big one which is the gender divergence in many countries ideology divergence in many countries ideology divergence in many countries ideology gap between like you know uh women and gap between like you know uh women and gap between like you know uh women and men. men. men. >> Crazy. >> Crazy. >> Crazy. >> Yes. >> Yes. >> Yes. >> And this is something where in many ways >> And this is something where in many ways >> And this is something where in many ways the parties are basically women versus the parties are basically women versus the parties are basically women versus men is left versus right men is left versus right men is left versus right >> are you do you see like okay this is a >> are you do you see like okay this is a >> are you do you see like okay this is a lot we're going to start losing people lot we're going to start losing people lot we're going to start losing people just because it's so many so many. Um is just because it's so many so many. Um is just because it's so many so many. Um is there one driving mechanism that's there one driving mechanism that's there one driving mechanism that's creating all of this? creating all of this? creating all of this? >> Yes. I think the internet is upstream >> Yes. I think the internet is upstream >> Yes. I think the internet is upstream above everything and why above everything and why above everything and why I think the so the reason I gave all I think the so the reason I gave all I think the so the reason I gave all those graphs is to show that it's not those graphs is to show that it's not those graphs is to show that it's not like many people just focus on one like many people just focus on one like many people just focus on one disruption disruption disruption but in physics for example you have to but in physics for example you have to but in physics for example you have to have a force diagram for example if you have a force diagram for example if you have a force diagram for example if you throw a ball like uh or let's say throw a ball like uh or let's say throw a ball like uh or let's say there's a rocket right gravity is acting there's a rocket right gravity is acting there's a rocket right gravity is acting downward on it but the rocket engine is downward on it but the rocket engine is downward on it but the rocket engine is acting upward on it and you have to take acting upward on it and you have to take acting upward on it and you have to take the balance of this upward force and the balance of this upward force and the balance of this upward force and this downward force and then you get the this downward force and then you get the this downward force and then you get the trajectory of the thing and if the trajectory of the thing and if the trajectory of the thing and if the rocket engine is changing it's you know rocket engine is changing it's you know rocket engine is changing it's you know ve like the the if the force that it is ve like the the if the force that it is ve like the the if the force that it is applying is itself changing you have to applying is itself changing you have to applying is itself changing you have to calculate all this stuff out right so calculate all this stuff out right so calculate all this stuff out right so it's not simply enough to look at one it's not simply enough to look at one it's not simply enough to look at one force in isolation you have to look at force in isolation you have to look at force in isolation you have to look at what's called the force diagram okay so what's called the force diagram okay so what's called the force diagram okay so what I do is I enumerate as many of what I do is I enumerate as many of what I do is I enumerate as many of these things as I can on individuals on these things as I can on individuals on these things as I can on individuals on businesses on on countries on sectors businesses on on countries on sectors businesses on on countries on sectors And I try to say where is like the net And I try to say where is like the net And I try to say where is like the net state of this gonna be. Okay. So um let state of this gonna be. Okay. So um let state of this gonna be. Okay. So um let me give the upstream and then let me me give the upstream and then let me me give the upstream and then let me give you explain what you mean by the give you explain what you mean by the give you explain what you mean by the net state of it. net state of it. net state of it. >> Sure. Sure. Sure. So let me give a >> Sure. Sure. Sure. So let me give a >> Sure. Sure. Sure. So let me give a concrete example. Let's say let's take concrete example. Let's say let's take concrete example. Let's say let's take uh AI. Okay. So AI is something that uh AI. Okay. So AI is something that uh AI. Okay. So AI is something that actually goes after um what kinds of actually goes after um what kinds of actually goes after um what kinds of jobs does it disrupt? Basically, digital jobs does it disrupt? Basically, digital jobs does it disrupt? Basically, digital AI disrupts Democrat jobs and physical AI disrupts Democrat jobs and physical AI disrupts Democrat jobs and physical AI disrupts Republican jobs. AI disrupts Republican jobs. AI disrupts Republican jobs. >> That is such an interesting way to look >> That is such an interesting way to look >> That is such an interesting way to look at it. Yeah, I get it. at it. Yeah, I get it. at it. Yeah, I get it. >> Okay. So, so digital AI goes after uh >> Okay. So, so digital AI goes after uh >> Okay. So, so digital AI goes after uh journalists, doctors, lawyers, uh journalists, doctors, lawyers, uh journalists, doctors, lawyers, uh bureaucrats, artists, right? Everybody bureaucrats, artists, right? Everybody bureaucrats, artists, right? Everybody who is like, you know, a uh a university who is like, you know, a uh a university who is like, you know, a uh a university educated creative, how Democrats like to educated creative, how Democrats like to educated creative, how Democrats like to think of themselves, right? It disrupts think of themselves, right? It disrupts think of themselves, right? It disrupts media. It disrupts Hollywood, right? media. It disrupts Hollywood, right? media. It disrupts Hollywood, right? Okay. Okay. Okay. And conversely, um, physical AI disrupts And conversely, um, physical AI disrupts And conversely, um, physical AI disrupts uh, manufacturing and disrupts the uh, manufacturing and disrupts the uh, manufacturing and disrupts the military. Everything Republicans pride military. Everything Republicans pride military. Everything Republicans pride themselves on, right? What is physical themselves on, right? What is physical themselves on, right? What is physical AI? Physical AI is robots, right? AI? Physical AI is robots, right? AI? Physical AI is robots, right? Digital AI is agents to First Order. Digital AI is agents to First Order. Digital AI is agents to First Order. Okay? And um, Okay? And um, Okay? And um, so with physical AI, that's Chinese so with physical AI, that's Chinese so with physical AI, that's Chinese robots. Digital AI is internet agents. robots. Digital AI is internet agents. robots. Digital AI is internet agents. Okay? And so when you when you see that Okay? And so when you when you see that Okay? And so when you when you see that this is causing this disruption on this is causing this disruption on this is causing this disruption on Democrats and Republicans, on blue Democrats and Republicans, on blue Democrats and Republicans, on blue Americans and red Americans, they're Americans and red Americans, they're Americans and red Americans, they're both going to counterattack it. both going to counterattack it. both going to counterattack it. Democrats more aggressively because the Democrats more aggressively because the Democrats more aggressively because the physical AI hasn't I mean it's partially physical AI hasn't I mean it's partially physical AI hasn't I mean it's partially hit the Republicans, but it's not really hit the Republicans, but it's not really hit the Republicans, but it's not really all the way there yet, right? They all the way there yet, right? They all the way there yet, right? They perceive it through the mechanism of perceive it through the mechanism of perceive it through the mechanism of China. you think they will fight as hard China. you think they will fight as hard China. you think they will fight as hard when it hits them as hard or is there a when it hits them as hard or is there a when it hits them as hard or is there a difference in uh strength of reaction difference in uh strength of reaction difference in uh strength of reaction based on party? based on party? based on party? For now, there's a difference in For now, there's a difference in For now, there's a difference in strength of reaction based on party strength of reaction based on party strength of reaction based on party because it is a total L for Democrats because it is a total L for Democrats because it is a total L for Democrats and it's only it's a it's a partial W and it's only it's a it's a partial W and it's only it's a it's a partial W for Republicans because it's certainly for Republicans because it's certainly for Republicans because it's certainly hurting Democrats more than it's hurting hurting Democrats more than it's hurting hurting Democrats more than it's hurting Republicans right now. So, blue states Republicans right now. So, blue states Republicans right now. So, blue states are going to be more aggressively are going to be more aggressively are going to be more aggressively anti-AI than red states. For example, anti-AI than red states. For example, anti-AI than red states. For example, New York is passing laws that like New York is passing laws that like New York is passing laws that like restrict the use of AI. Uh like you have restrict the use of AI. Uh like you have restrict the use of AI. Uh like you have to consult with a lawyer or something to consult with a lawyer or something to consult with a lawyer or something like that before using AI for legal docs like that before using AI for legal docs like that before using AI for legal docs or it's not privileged. There's various or it's not privileged. There's various or it's not privileged. There's various rulings like this that are sort of legal rulings like this that are sort of legal rulings like this that are sort of legal guild type rulings, you know, right? And guild type rulings, you know, right? And guild type rulings, you know, right? And um there'll probably be workarounds for um there'll probably be workarounds for um there'll probably be workarounds for that like you know an inexpensive lawyer that like you know an inexpensive lawyer that like you know an inexpensive lawyer for whatever five bucks an hour. Now for whatever five bucks an hour. Now for whatever five bucks an hour. Now it's under now you're they're your it's under now you're they're your it's under now you're they're your lawyer and it's under privilege and then lawyer and it's under privilege and then lawyer and it's under privilege and then you can use privileged AI. There'll be you can use privileged AI. There'll be you can use privileged AI. There'll be various workarounds I think you'll see various workarounds I think you'll see various workarounds I think you'll see for that. Nevertheless, blue states are for that. Nevertheless, blue states are for that. Nevertheless, blue states are very much anti- AI. It disrupts their very much anti- AI. It disrupts their very much anti- AI. It disrupts their sense of self, right? Like what they sense of self, right? Like what they sense of self, right? Like what they take pride in. You know, basically take pride in. You know, basically take pride in. You know, basically roughly speaking, Democrats will be and roughly speaking, Democrats will be and roughly speaking, Democrats will be and are as mad about the disruption of the are as mad about the disruption of the are as mad about the disruption of the internet as Republicans are mad about internet as Republicans are mad about internet as Republicans are mad about the disruption of China. We'll be back the disruption of China. We'll be back the disruption of China. We'll be back to the show in a jiffy. But first, let's to the show in a jiffy. But first, let's to the show in a jiffy. But first, let's talk about what elite athletes have talk about what elite athletes have talk about what elite athletes have known for years. Clean fuel wins. When known for years. Clean fuel wins. When known for years. Clean fuel wins. When your performance matters, you cannot your performance matters, you cannot your performance matters, you cannot rely on stimulants to spike you hard and rely on stimulants to spike you hard and rely on stimulants to spike you hard and then crash you even harder. Athletes then crash you even harder. Athletes then crash you even harder. Athletes figured this out long ago. They need figured this out long ago. They need figured this out long ago. They need sustained energy. That's why they turn sustained energy. That's why they turn sustained energy. That's why they turn to ketones. I take half a dose of Ketone to ketones. I take half a dose of Ketone to ketones. I take half a dose of Ketone IQ and it keeps me alert and focused IQ and it keeps me alert and focused IQ and it keeps me alert and focused without any of the downsides of without any of the downsides of without any of the downsides of stimulants. I use it before I write. I stimulants. I use it before I write. I stimulants. I use it before I write. I use it before I do interviews. No use it before I do interviews. No use it before I do interviews. No jitters, no brain fog, just sustained jitters, no brain fog, just sustained jitters, no brain fog, just sustained cognitive performance. And this isn't cognitive performance. And this isn't cognitive performance. And this isn't some trendy biohack. Ketone IQ was some trendy biohack. Ketone IQ was some trendy biohack. Ketone IQ was developed through a $6 million developed through a $6 million developed through a $6 million Department of Defense contract to Department of Defense contract to Department of Defense contract to support elite cognitive performance in support elite cognitive performance in support elite cognitive performance in the field. If you're ready to fuel your the field. If you're ready to fuel your the field. If you're ready to fuel your brain properly, visit ketone.com/impact brain properly, visit ketone.com/impact brain properly, visit ketone.com/impact for 30% off your subscription order or for 30% off your subscription order or for 30% off your subscription order or visit your local Target to get your visit your local Target to get your visit your local Target to get your first shot for free. That's first shot for free. That's first shot for free. That's ketone.com/impact. ketone.com/impact. ketone.com/impact. Now, let's get back to the show. Now, is Now, let's get back to the show. Now, is Now, let's get back to the show. Now, is this a um uniquely American thing or the this a um uniquely American thing or the this a um uniquely American thing or the coralates in other western countries coralates in other western countries coralates in other western countries hold true? It's particularly true for hold true? It's particularly true for hold true? It's particularly true for America. America. America. Um it's to a lesser extent true because Um it's to a lesser extent true because Um it's to a lesser extent true because the thing is a lot of other western the thing is a lot of other western the thing is a lot of other western countries were disrupted by America countries were disrupted by America countries were disrupted by America already already already >> and so this is like the disruption of >> and so this is like the disruption of >> and so this is like the disruption of the disruptor the disruptor the disruptor and um so they're like two cycles behind and um so they're like two cycles behind and um so they're like two cycles behind in a sense right uh which means some of in a sense right uh which means some of in a sense right uh which means some of them could leaprog but I I think many in them could leaprog but I I think many in them could leaprog but I I think many in Western Europe are just kind of going to Western Europe are just kind of going to Western Europe are just kind of going to have a bad century but have a bad century but have a bad century but >> okay aggressive I like it. Yeah. Yeah. >> okay aggressive I like it. Yeah. Yeah. >> okay aggressive I like it. Yeah. Yeah. The reason well just very very briefly The reason well just very very briefly The reason well just very very briefly on that is I think many countries not on that is I think many countries not on that is I think many countries not all but many countries had a terrible all but many countries had a terrible all but many countries had a terrible 20th century. They were under communism 20th century. They were under communism 20th century. They were under communism they're under socialism you know that's they're under socialism you know that's they're under socialism you know that's Eastern Europe, Russia um India, China, Eastern Europe, Russia um India, China, Eastern Europe, Russia um India, China, Southeast Asia with Vietnam and so on Southeast Asia with Vietnam and so on Southeast Asia with Vietnam and so on Vietnam war right? All these all these Vietnam war right? All these all these Vietnam war right? All these all these places that had a terrible 20th century places that had a terrible 20th century places that had a terrible 20th century u actually including big chunks of Latin u actually including big chunks of Latin u actually including big chunks of Latin America which were you know places like America which were you know places like America which were you know places like El Salvador and so on that had drugs, El Salvador and so on that had drugs, El Salvador and so on that had drugs, inflation, crime, right? They developed inflation, crime, right? They developed inflation, crime, right? They developed civilizational antibodies to communism, civilizational antibodies to communism, civilizational antibodies to communism, socialism, socialism, socialism, uh inflation, drugs, right? And thus uh inflation, drugs, right? And thus uh inflation, drugs, right? And thus arose for example uh you know the arose for example uh you know the arose for example uh you know the basically capitalist regimes in um or basically capitalist regimes in um or basically capitalist regimes in um or regimes, governments, what have you in regimes, governments, what have you in regimes, governments, what have you in Eastern Europe in India, right? that Eastern Europe in India, right? that Eastern Europe in India, right? that reversed decades of decline and uh reversed decades of decline and uh reversed decades of decline and uh similarly you know Bkelli or Malay or similarly you know Bkelli or Malay or similarly you know Bkelli or Malay or now Hernando Dodto in Latin America now Hernando Dodto in Latin America now Hernando Dodto in Latin America that's three um you know three is a that's three um you know three is a that's three um you know three is a trend right three basically capitalist trend right three basically capitalist trend right three basically capitalist uh leaders who are against what you know uh leaders who are against what you know uh leaders who are against what you know basically tore down Latin America last basically tore down Latin America last basically tore down Latin America last century right for the most part so but century right for the most part so but century right for the most part so but on the other side of things you had on the other side of things you had on the other side of things you had Western Europe and the US and Canada Western Europe and the US and Canada Western Europe and the US and Canada that have been so prosperous for so long that have been so prosperous for so long that have been so prosperous for so long that they ended up thinking prosperity that they ended up thinking prosperity that they ended up thinking prosperity was their birthright and essentially was their birthright and essentially was their birthright and essentially degenerated. Right. degenerated. Right. degenerated. Right. >> I I agree so aggressively I'm getting a >> I I agree so aggressively I'm getting a >> I I agree so aggressively I'm getting a cramp. cramp. cramp. >> Yes. So now here's the good news. The >> Yes. So now here's the good news. The >> Yes. So now here's the good news. The good news is good news is good news is I do think that um unfortunately America I do think that um unfortunately America I do think that um unfortunately America is over but the internet is just is over but the internet is just is over but the internet is just beginning. beginning. beginning. >> Okay. Bold statement. So before we just >> Okay. Bold statement. So before we just >> Okay. Bold statement. So before we just blow past that. blow past that. blow past that. >> Yeah. >> Yeah. >> Yeah. >> Give me let me go back to the previous >> Give me let me go back to the previous >> Give me let me go back to the previous Yeah. Yeah. Yeah. >> Okay. Do you need to touch on that first >> Okay. Do you need to touch on that first >> Okay. Do you need to touch on that first because I want to understand the because I want to understand the because I want to understand the mechanism because I have a hypothesis mechanism because I have a hypothesis mechanism because I have a hypothesis about that. about that. about that. >> Okay. >> Okay. >> Okay. >> For me, this is this is a debt question >> For me, this is this is a debt question >> For me, this is this is a debt question and and any answer that does not include and and any answer that does not include and and any answer that does not include debt in terms of America's ALS, I would debt in terms of America's ALS, I would debt in terms of America's ALS, I would be uh very aggressive in my rebuttal. be uh very aggressive in my rebuttal. be uh very aggressive in my rebuttal. I'll say that. I'll say that. I'll say that. >> Totally totally agree with you. It but >> Totally totally agree with you. It but >> Totally totally agree with you. It but it is like a force diagram where there's it is like a force diagram where there's it is like a force diagram where there's multiple forces acting at the same time. multiple forces acting at the same time. multiple forces acting at the same time. Right. So um Right. So um Right. So um >> do you think debt is bigger or internet? >> do you think debt is bigger or internet? >> do you think debt is bigger or internet? Debt is the inflationary force Debt is the inflationary force Debt is the inflationary force >> and China and the internet are the >> and China and the internet are the >> and China and the internet are the deflationary forces. deflationary forces. deflationary forces. >> Deflationary from a crisisled position >> Deflationary from a crisisled position >> Deflationary from a crisisled position because deflation from innovation is because deflation from innovation is because deflation from innovation is wonderful. Deflation from crisis bad. wonderful. Deflation from crisis bad. wonderful. Deflation from crisis bad. >> Uh deflation from innovation. So >> Uh deflation from innovation. So >> Uh deflation from innovation. So basically the existing system, the US basically the existing system, the US basically the existing system, the US and Western European system is and Western European system is and Western European system is essentially at the end of the line where essentially at the end of the line where essentially at the end of the line where you have um decades of Keynianism. you have um decades of Keynianism. you have um decades of Keynianism. Keynesianism Keynesianism Keynesianism and and and >> can on what you mean by that? >> can on what you mean by that? >> can on what you mean by that? >> Sure. Yes. Keynesianism is like >> Sure. Yes. Keynesianism is like >> Sure. Yes. Keynesianism is like communism but for wimps. communism but for wimps. communism but for wimps. >> Okay. Communism goes like when the >> Okay. Communism goes like when the >> Okay. Communism goes like when the communists want to take 10%. Is that communists want to take 10%. Is that communists want to take 10%. Is that good? Right. That's fantastic. good? Right. That's fantastic. good? Right. That's fantastic. >> Okay, so let me explain what I mean with >> Okay, so let me explain what I mean with >> Okay, so let me explain what I mean with that. Soviet communism, uh, when Lenin that. Soviet communism, uh, when Lenin that. Soviet communism, uh, when Lenin wanted to go and steal all the property, wanted to go and steal all the property, wanted to go and steal all the property, he actually, you know, Lenin's hanging he actually, you know, Lenin's hanging he actually, you know, Lenin's hanging order, for example, like kill the order, for example, like kill the order, for example, like kill the Kulocks and so on. They basically had Kulocks and so on. They basically had Kulocks and so on. They basically had lists of all the farms and so on in in lists of all the farms and so on in in lists of all the farms and so on in in the country, and they would send guys the country, and they would send guys the country, and they would send guys with guns to kick in the door. They'd with guns to kick in the door. They'd with guns to kick in the door. They'd rape the wife, they'd kill the father, rape the wife, they'd kill the father, rape the wife, they'd kill the father, they'd take the son to a goolog. Brutal, they'd take the son to a goolog. Brutal, they'd take the son to a goolog. Brutal, brutal. This is what collectivization brutal. This is what collectivization brutal. This is what collectivization meant, right, for the people, right? It meant, right, for the people, right? It meant, right, for the people, right? It meant the party would basically steal meant the party would basically steal meant the party would basically steal all this property. And a farm, by the all this property. And a farm, by the all this property. And a farm, by the way, is like a factory in the sense of, way, is like a factory in the sense of, way, is like a factory in the sense of, you know, how do you actually grow the you know, how do you actually grow the you know, how do you actually grow the the beets or the radishes? It's like a the beets or the radishes? It's like a the beets or the radishes? It's like a whole process of how you airate them and whole process of how you airate them and whole process of how you airate them and irrigate them. And if you all all that irrigate them. And if you all all that irrigate them. And if you all all that knowledge went away when you killed the knowledge went away when you killed the knowledge went away when you killed the farmer or or stole the farm, which is farmer or or stole the farm, which is farmer or or stole the farm, which is why all these famines resulted. It's why all these famines resulted. It's why all these famines resulted. It's like a machine that you don't know how like a machine that you don't know how like a machine that you don't know how to operate. Anyway, point is in order to to operate. Anyway, point is in order to to operate. Anyway, point is in order to do that, they had to actually go do that, they had to actually go do that, they had to actually go physically house to house and shoot physically house to house and shoot physically house to house and shoot people and take their stuff. Okay? to people and take their stuff. Okay? to people and take their stuff. Okay? to seal 10% of the property, they actually seal 10% of the property, they actually seal 10% of the property, they actually had to have physically guys with guns. had to have physically guys with guns. had to have physically guys with guns. American Keynesianism has innovated on American Keynesianism has innovated on American Keynesianism has innovated on that. Why? Because they don't have to that. Why? Because they don't have to that. Why? Because they don't have to when when the Fed wants to steal 10% of when when the Fed wants to steal 10% of when when the Fed wants to steal 10% of of all property, right? They just hit a of all property, right? They just hit a of all property, right? They just hit a button and they inflate the money supply button and they inflate the money supply button and they inflate the money supply and nobody feels it. In fact, some and nobody feels it. In fact, some and nobody feels it. In fact, some people even think that they've gotten people even think that they've gotten people even think that they've gotten richer because their asset prices have richer because their asset prices have richer because their asset prices have gone up, gone up, gone up, >> right? >> right? >> right? >> Because their house price or or their, >> Because their house price or or their, >> Because their house price or or their, you know, S&P or whatever has gone up in you know, S&P or whatever has gone up in you know, S&P or whatever has gone up in nominal terms. But it's like, uh, you nominal terms. But it's like, uh, you nominal terms. But it's like, uh, you know, let's say there were 10 units of know, let's say there were 10 units of know, let's say there were 10 units of stock and you had one and you had 10%. stock and you had one and you had 10%. stock and you had one and you had 10%. Okay? Now, another, uh, 90 units are Okay? Now, another, uh, 90 units are Okay? Now, another, uh, 90 units are issued and you get one, right? So you issued and you get one, right? So you issued and you get one, right? So you went up nominally from one unit of stock went up nominally from one unit of stock went up nominally from one unit of stock to two units of stock, but you went down to two units of stock, but you went down to two units of stock, but you went down percentage-wise from one out of 10 to percentage-wise from one out of 10 to percentage-wise from one out of 10 to two out of 100. two out of 100. two out of 100. Right? So, so your nominal went up from Right? So, so your nominal went up from Right? So, so your nominal went up from 1 to two, but your percentage went down 1 to two, but your percentage went down 1 to two, but your percentage went down from 10% to 2%. from 10% to 2%. from 10% to 2%. >> That's exactly what's happening with >> That's exactly what's happening with >> That's exactly what's happening with inflation. People can understand it when inflation. People can understand it when inflation. People can understand it when it's dilution on a cap table, right? Um, it's dilution on a cap table, right? Um, it's dilution on a cap table, right? Um, >> the average person doesn't even know >> the average person doesn't even know >> the average person doesn't even know what a cap table is. what a cap table is. what a cap table is. >> Fine. Okay, you're right. But >> Fine. Okay, you're right. But >> Fine. Okay, you're right. But >> I know, >> I know, >> I know, >> you know what I mean. So, so the thing >> you know what I mean. So, so the thing >> you know what I mean. So, so the thing is it's just abstract enough that when is it's just abstract enough that when is it's just abstract enough that when for example when people are at Chipotle, for example when people are at Chipotle, for example when people are at Chipotle, okay, I don't know if you've seen this okay, I don't know if you've seen this okay, I don't know if you've seen this phenomenon of people videotaping the guy phenomenon of people videotaping the guy phenomenon of people videotaping the guy at Chipotle because they're not giving at Chipotle because they're not giving at Chipotle because they're not giving them enough guacamole. them enough guacamole. them enough guacamole. >> I have not. >> I have not. >> I have not. >> Okay. Well, the the common man just sees >> Okay. Well, the the common man just sees >> Okay. Well, the the common man just sees all of these corporations trying to all of these corporations trying to all of these corporations trying to nickel and dime them and give them less nickel and dime them and give them less nickel and dime them and give them less guacamole for the same amount of money guacamole for the same amount of money guacamole for the same amount of money uh hitting them with shrinkflation in uh hitting them with shrinkflation in uh hitting them with shrinkflation in terms of packaging. The quality of food terms of packaging. The quality of food terms of packaging. The quality of food is going down. the quality of service is is going down. the quality of service is is going down. the quality of service is going down. They're seeing all that and going down. They're seeing all that and going down. They're seeing all that and they're thinking these corporations are they're thinking these corporations are they're thinking these corporations are getting greedier. getting greedier. getting greedier. >> What they're not seeing is that both the >> What they're not seeing is that both the >> What they're not seeing is that both the individual and the company, which is of individual and the company, which is of individual and the company, which is of course also run by individuals, have course also run by individuals, have course also run by individuals, have both been robbed by the Fed. both been robbed by the Fed. both been robbed by the Fed. >> Yeah. >> Yeah. >> Yeah. >> So they're both having to do more with >> So they're both having to do more with >> So they're both having to do more with less. And so every economic less. And so every economic less. And so every economic relationship, the Fed has stolen 10% relationship, the Fed has stolen 10% relationship, the Fed has stolen 10% from the economy with that print and from the economy with that print and from the economy with that print and it's left everybody else to fight over it's left everybody else to fight over it's left everybody else to fight over the scraps. And it does it again. And the scraps. And it does it again. And the scraps. And it does it again. And then it shrinks the amount of wealth, then it shrinks the amount of wealth, then it shrinks the amount of wealth, but it does so invisibly because it's but it does so invisibly because it's but it does so invisibly because it's stealing it for itself. That's why I say stealing it for itself. That's why I say stealing it for itself. That's why I say Keynesianism is communism, but for wimps Keynesianism is communism, but for wimps Keynesianism is communism, but for wimps because like in evolution, you know, because like in evolution, you know, because like in evolution, you know, camouflage evolves all the time, right? camouflage evolves all the time, right? camouflage evolves all the time, right? Like, you know, a a mosquito Like, you know, a a mosquito Like, you know, a a mosquito anesthetizes before drinking the blood, anesthetizes before drinking the blood, anesthetizes before drinking the blood, right? Versus a saber-tooth tiger that right? Versus a saber-tooth tiger that right? Versus a saber-tooth tiger that you can see coming, you know? Or um you you can see coming, you know? Or um you you can see coming, you know? Or um you have what what do people in the military have what what do people in the military have what what do people in the military wear? They wear camouflage, right? wear? They wear camouflage, right? wear? They wear camouflage, right? What's a stealth bomber? It's that's What's a stealth bomber? It's that's What's a stealth bomber? It's that's camouflage. Um it's both engineered and camouflage. Um it's both engineered and camouflage. Um it's both engineered and evolved in nature. Like a snake has evolved in nature. Like a snake has evolved in nature. Like a snake has camouflage, right? So Keynesianism is camouflage, right? So Keynesianism is camouflage, right? So Keynesianism is communism that's evolved even more communism that's evolved even more communism that's evolved even more camouflage. Communism already had camouflage. Communism already had camouflage. Communism already had camouflage because it portrayed itself camouflage because it portrayed itself camouflage because it portrayed itself as sharing and caring, but it was as sharing and caring, but it was as sharing and caring, but it was actually, you know, stealing and actually, you know, stealing and actually, you know, stealing and whatnot. Keynesianism. Go ahead. whatnot. Keynesianism. Go ahead. whatnot. Keynesianism. Go ahead. >> No, I was just agreeing. >> No, I was just agreeing. >> No, I was just agreeing. >> Right. So Keynesianism is even more >> Right. So Keynesianism is even more >> Right. So Keynesianism is even more abstract where it surrounds itself with abstract where it surrounds itself with abstract where it surrounds itself with all kinds of nonsense mathematical all kinds of nonsense mathematical all kinds of nonsense mathematical symbols. By the way, the Soviets did symbols. By the way, the Soviets did symbols. By the way, the Soviets did that as well. They had all these schools that as well. They had all these schools that as well. They had all these schools of Marxist economics and you know there of Marxist economics and you know there of Marxist economics and you know there was some real math that came out of it was some real math that came out of it was some real math that came out of it but for the most part their premises but for the most part their premises but for the most part their premises were wrong. So their conclusions were were wrong. So their conclusions were were wrong. So their conclusions were wrong. Okay. And Keynesianism the wrong. Okay. And Keynesianism the wrong. Okay. And Keynesianism the fundamental premise of Keynism is wrong fundamental premise of Keynism is wrong fundamental premise of Keynism is wrong which says that and it gets inflation which says that and it gets inflation which says that and it gets inflation deflation point. Basically deflation point. Basically deflation point. Basically Keynesianism says rapid inflation Keynesianism says rapid inflation Keynesianism says rapid inflation is bad but deflation is also bad. Why? is bad but deflation is also bad. Why? is bad but deflation is also bad. Why? It would cause hoarding. Okay. So It would cause hoarding. Okay. So It would cause hoarding. Okay. So therefore a gradual amount of inflation therefore a gradual amount of inflation therefore a gradual amount of inflation what they call the New Zealand 2% target what they call the New Zealand 2% target what they call the New Zealand 2% target every year is is good right because that every year is is good right because that every year is is good right because that in allows the money supply to inflate to in allows the money supply to inflate to in allows the money supply to inflate to accommodate for growth and so on and so accommodate for growth and so on and so accommodate for growth and so on and so forth. And what they mean by hoarding by forth. And what they mean by hoarding by forth. And what they mean by hoarding by the way is if your unit of account let's the way is if your unit of account let's the way is if your unit of account let's say let's say your dollar became more say let's say your dollar became more say let's say your dollar became more and more valuable every year. Okay and more valuable every year. Okay and more valuable every year. Okay eventually it would get to the point eventually it would get to the point eventually it would get to the point that to buy a house you would have to that to buy a house you would have to that to buy a house you would have to it'd be one whole dollar. Okay. And it'd be one whole dollar. Okay. And it'd be one whole dollar. Okay. And you'd have to you wouldn't be able to you'd have to you wouldn't be able to you'd have to you wouldn't be able to break it up into pieces. So it would be break it up into pieces. So it would be break it up into pieces. So it would be 1 cent per house. Okay? And then they'd 1 cent per house. Okay? And then they'd 1 cent per house. Okay? And then they'd say, "Oh, that scent is too valuable. say, "Oh, that scent is too valuable. say, "Oh, that scent is too valuable. Therefore, you know, we need to actually Therefore, you know, we need to actually Therefore, you know, we need to actually devalue it. So now it's liquid enough devalue it. So now it's liquid enough devalue it. So now it's liquid enough that you can trade." Right? This may that you can trade." Right? This may that you can trade." Right? This may have been an argument in the past, but have been an argument in the past, but have been an argument in the past, but it's not actually an argument in the it's not actually an argument in the it's not actually an argument in the present because in the digital era, you present because in the digital era, you present because in the digital era, you can just add a decimal place, can just add a decimal place, can just add a decimal place, right? So you can get around liquidity right? So you can get around liquidity right? So you can get around liquidity traps. So, so this is the whole argument traps. So, so this is the whole argument traps. So, so this is the whole argument for why they inflate or whatever by for why they inflate or whatever by for why they inflate or whatever by simply adding a decimal place in the simply adding a decimal place in the simply adding a decimal place in the digital realm. So, anyway, that's a digital realm. So, anyway, that's a digital realm. So, anyway, that's a whole separate point. Coming back, the whole separate point. Coming back, the whole separate point. Coming back, the premise of Keynesianism is that lots of premise of Keynesianism is that lots of premise of Keynesianism is that lots of inflation is bad, but deflation is also inflation is bad, but deflation is also inflation is bad, but deflation is also bad. And deflation, by the way, for the bad. And deflation, by the way, for the bad. And deflation, by the way, for the average person, they under normal average person, they under normal average person, they under normal circumstances, they would think of circumstances, they would think of circumstances, they would think of deflation as good. Why? Things get deflation as good. Why? Things get deflation as good. Why? Things get cheaper every year because of cheaper every year because of cheaper every year because of technological improvements. like you technological improvements. like you technological improvements. like you know for example there's a new process know for example there's a new process know for example there's a new process the habber process it makes like ammonia the habber process it makes like ammonia the habber process it makes like ammonia you know cheaper to produce right that you know cheaper to produce right that you know cheaper to produce right that should bring down your costs that's a should bring down your costs that's a should bring down your costs that's a great example of technological great example of technological great example of technological innovation reducing costs right um all innovation reducing costs right um all innovation reducing costs right um all the stuff that we have on the internet the stuff that we have on the internet the stuff that we have on the internet is reducing costs in the digital realm is reducing costs in the digital realm is reducing costs in the digital realm it's so much cheaper to search for it's so much cheaper to search for it's so much cheaper to search for flights you don't have to go to a travel flights you don't have to go to a travel flights you don't have to go to a travel agent to look up medical advice or agent to look up medical advice or agent to look up medical advice or something like that with an AI agent all something like that with an AI agent all something like that with an AI agent all those things are deflationary the um the those things are deflationary the um the those things are deflationary the um the alternative to Keynesianism is alternative to Keynesianism is alternative to Keynesianism is essentially the idea of technological essentially the idea of technological essentially the idea of technological hyperl hyperl hyperl that actually we should accelerate that that actually we should accelerate that that actually we should accelerate that actually everything should get cheaper actually everything should get cheaper actually everything should get cheaper every year houses should get cheaper every year houses should get cheaper every year houses should get cheaper everything should get cheaper and the everything should get cheaper and the everything should get cheaper and the Keynesian would say no no no that if Keynesian would say no no no that if Keynesian would say no no no that if everything gets cheaper every year this everything gets cheaper every year this everything gets cheaper every year this is other reason they say not to do it is other reason they say not to do it is other reason they say not to do it they say everyone would hoard their they say everyone would hoard their they say everyone would hoard their money they wouldn't if if it if money they wouldn't if if it if money they wouldn't if if it if something got cheaper next year why something got cheaper next year why something got cheaper next year why would you buy it ever you just wait for would you buy it ever you just wait for would you buy it ever you just wait for it to get cheaper you would hoard your it to get cheaper you would hoard your it to get cheaper you would hoard your money there would be no economic money there would be no economic money there would be no economic activity that's their theory but there's activity that's their theory but there's activity that's their theory but there's a counterargument to that as well which a counterargument to that as well which a counterargument to that as well which is Mo's law in practice computers is Mo's law in practice computers is Mo's law in practice computers actually have gotten cheaper like you actually have gotten cheaper like you actually have gotten cheaper like you know that a Mac for example is going to know that a Mac for example is going to know that a Mac for example is going to be better in a year or two years you be better in a year or two years you be better in a year or two years you know whether it's literally transistor know whether it's literally transistor know whether it's literally transistor density doubling every 18 months that's density doubling every 18 months that's density doubling every 18 months that's the technical definition Mo's law you the technical definition Mo's law you the technical definition Mo's law you know broadly computers get better pretty know broadly computers get better pretty know broadly computers get better pretty quickly nevertheless people buy quickly nevertheless people buy quickly nevertheless people buy computers really really really I mean computers really really really I mean computers really really really I mean that they spend a lot of money on that they spend a lot of money on that they spend a lot of money on computers they're not waiting partially computers they're not waiting partially computers they're not waiting partially because that deflation itself creates because that deflation itself creates because that deflation itself creates economic opportunities economic opportunities economic opportunities So the value of waiting for that So the value of waiting for that So the value of waiting for that productivity instrument versus getting productivity instrument versus getting productivity instrument versus getting it today and then building on it is is it today and then building on it is is it today and then building on it is is you know there's a time value. Anyway, you know there's a time value. Anyway, you know there's a time value. Anyway, people buy things when they want them. people buy things when they want them. people buy things when they want them. So it is what it is. But what we were So it is what it is. But what we were So it is what it is. But what we were trying to address is you were saying trying to address is you were saying trying to address is you were saying that you have a deflationary effect from that you have a deflationary effect from that you have a deflationary effect from China and the internet and I'm trying to China and the internet and I'm trying to China and the internet and I'm trying to figure out if you're saying that's a figure out if you're saying that's a figure out if you're saying that's a good thing or a bad thing. good thing or a bad thing. good thing or a bad thing. >> It is a good thing. Thank god it exists. >> It is a good thing. Thank god it exists. >> It is a good thing. Thank god it exists. >> Well, help us understand because from an >> Well, help us understand because from an >> Well, help us understand because from an American context, China uh eating our American context, China uh eating our American context, China uh eating our lunch does not feel like a good thing. lunch does not feel like a good thing. lunch does not feel like a good thing. China taking jobs does not feel like a China taking jobs does not feel like a China taking jobs does not feel like a good thing. Like I I think most people good thing. Like I I think most people good thing. Like I I think most people here are pretty keenly aware that we're here are pretty keenly aware that we're here are pretty keenly aware that we're now in a cold war with China. now in a cold war with China. now in a cold war with China. >> Let me take it out of the American >> Let me take it out of the American >> Let me take it out of the American perspective for a second to make it a perspective for a second to make it a perspective for a second to make it a little less emotional. Okay, for the little less emotional. Okay, for the little less emotional. Okay, for the average Russian in the 80s, average Russian in the 80s, average Russian in the 80s, their quality of life dropped their quality of life dropped their quality of life dropped dramatically when communism ended. dramatically when communism ended. dramatically when communism ended. And their main geopolitical rival were And their main geopolitical rival were And their main geopolitical rival were were the Americans. And they lost were the Americans. And they lost were the Americans. And they lost territory. They lost life expectancy. territory. They lost life expectancy. territory. They lost life expectancy. They had drug overdoses. They had mafias They had drug overdoses. They had mafias They had drug overdoses. They had mafias running their things. All kinds of bad running their things. All kinds of bad running their things. All kinds of bad things happened to them after the end of things happened to them after the end of things happened to them after the end of communism. communism. communism. Still in the medium to long run, few Still in the medium to long run, few Still in the medium to long run, few Russians would want to go back to Russians would want to go back to Russians would want to go back to communism. communism. communism. >> Like it was like net even if they didn't >> Like it was like net even if they didn't >> Like it was like net even if they didn't like they still don't like the like they still don't like the like they still don't like the Americans. They're still in fact Americans. They're still in fact Americans. They're still in fact fighting the Americans, right? fighting the Americans, right? fighting the Americans, right? Nevertheless, it was good that there was Nevertheless, it was good that there was Nevertheless, it was good that there was an alternative to communism, an alternative to communism, an alternative to communism, right? That is a complex thing that right? That is a complex thing that right? That is a complex thing that doesn't just it's not a Hollywood thing doesn't just it's not a Hollywood thing doesn't just it's not a Hollywood thing of good versus bad, right? It was of good versus bad, right? It was of good versus bad, right? It was short-term bad in many ways. It was short-term bad in many ways. It was short-term bad in many ways. It was arguably long-term good in some ways. arguably long-term good in some ways. arguably long-term good in some ways. Though, of course, it's not a Hollywood Though, of course, it's not a Hollywood Though, of course, it's not a Hollywood ending because obviously like the ending because obviously like the ending because obviously like the Russians, while they may be capitalist Russians, while they may be capitalist Russians, while they may be capitalist in some way, they're also mad about in some way, they're also mad about in some way, they're also mad about losing their empire. You know, they have losing their empire. You know, they have losing their empire. You know, they have very conflicted, everybody has a very very conflicted, everybody has a very very conflicted, everybody has a very conflict relationship to the whole conflict relationship to the whole conflict relationship to the whole Soviet Union because Russians were big Soviet Union because Russians were big Soviet Union because Russians were big and strong then. They had bases in and strong then. They had bases in and strong then. They had bases in Vietnam and Angola. they they were big Vietnam and Angola. they they were big Vietnam and Angola. they they were big and strong around the world and didn't and strong around the world and didn't and strong around the world and didn't they help beat the Nazis, right? And they help beat the Nazis, right? And they help beat the Nazis, right? And then conversely uh all the people in then conversely uh all the people in then conversely uh all the people in like Eastern Europe would say, "Well, like Eastern Europe would say, "Well, like Eastern Europe would say, "Well, yeah, but you the Russians occupied us yeah, but you the Russians occupied us yeah, but you the Russians occupied us and they forced Russian on us and you and they forced Russian on us and you and they forced Russian on us and you know and communism was imposed on blah know and communism was imposed on blah know and communism was imposed on blah blah blah." Everybody has like all kinds blah blah." Everybody has like all kinds blah blah." Everybody has like all kinds of recriminations when an empire breaks of recriminations when an empire breaks of recriminations when an empire breaks down. So in the same way, Keynism is bad down. So in the same way, Keynism is bad down. So in the same way, Keynism is bad for Americans just like communism is bad for Americans just like communism is bad for Americans just like communism is bad for Russians. And a lot of people in for Russians. And a lot of people in for Russians. And a lot of people in cryptocurrency understand that. They cryptocurrency understand that. They cryptocurrency understand that. They understand that it's unhealthy and they understand that it's unhealthy and they understand that it's unhealthy and they also understand that they need to kick also understand that they need to kick also understand that they need to kick the habit at some point and in fact they the habit at some point and in fact they the habit at some point and in fact they are being forced to kick the habit are being forced to kick the habit are being forced to kick the habit because in the absence of a counterforce because in the absence of a counterforce because in the absence of a counterforce to kinianism to kinianism to kinianism what happens is they don't just take 10% what happens is they don't just take 10% what happens is they don't just take 10% of the wealth they take 30% and 80% and of the wealth they take 30% and 80% and of the wealth they take 30% and 80% and then 99% because they can print then 99% because they can print then 99% because they can print infinitely right that's what infinitely right that's what infinitely right that's what >> so I'm going to I'm going to give you >> so I'm going to I'm going to give you >> so I'm going to I'm going to give you that the internet is like that the that the internet is like that the that the internet is like that the internet's a big win for that and for no internet's a big win for that and for no internet's a big win for that and for no other reason than we can have other reason than we can have other reason than we can have cryptographic currency that acts as a cryptographic currency that acts as a cryptographic currency that acts as a lifeboat. Hard money. I can exit out of lifeboat. Hard money. I can exit out of lifeboat. Hard money. I can exit out of the Keynesian madness. I'm not tracking the Keynesian madness. I'm not tracking the Keynesian madness. I'm not tracking on China. China is also printing their on China. China is also printing their on China. China is also printing their own money. Uh maybe one day they'll back own money. Uh maybe one day they'll back own money. Uh maybe one day they'll back it with gold. But I'm what I'm I get it with gold. But I'm what I'm I get it with gold. But I'm what I'm I get from a they make cheap widgets. Yay. But from a they make cheap widgets. Yay. But from a they make cheap widgets. Yay. But they also cratered the jobs. So from a they also cratered the jobs. So from a they also cratered the jobs. So from a US perspective, that argument feels a US perspective, that argument feels a US perspective, that argument feels a little bit muddy. So I'm I'll pull out little bit muddy. So I'm I'll pull out little bit muddy. So I'm I'll pull out of that unless you think there's really of that unless you think there's really of that unless you think there's really a way to land that plane. Otherwise, a way to land that plane. Otherwise, a way to land that plane. Otherwise, we're going to end up debating that we're going to end up debating that we're going to end up debating that endlessly. endlessly. endlessly. >> I I want to land the plane. I want lens >> I I want to land the plane. I want lens >> I I want to land the plane. I want lens plane. And so the thing is um plane. And so the thing is um plane. And so the thing is um >> it is hard to have binocular vision >> it is hard to have binocular vision >> it is hard to have binocular vision because like if one is on let's say because like if one is on let's say because like if one is on let's say center right in in in America, you're center right in in in America, you're center right in in in America, you're basically going to see China as bad basically going to see China as bad basically going to see China as bad because it is bad for the center right because it is bad for the center right because it is bad for the center right American on balance. And if you're American on balance. And if you're American on balance. And if you're center left or left, you're going to see center left or left, you're going to see center left or left, you're going to see the internet as bad because it is bad the internet as bad because it is bad the internet as bad because it is bad for Democrats on balance from a jobs and for Democrats on balance from a jobs and for Democrats on balance from a jobs and stature standpoint and so on. Right? stature standpoint and so on. Right? stature standpoint and so on. Right? However, um I would say that uh However, um I would say that uh However, um I would say that uh when just to address two quick points when just to address two quick points when just to address two quick points and let's come back up the stack. When and let's come back up the stack. When and let's come back up the stack. When China prints money, it is also doing an China prints money, it is also doing an China prints money, it is also doing an asset seizure, right? Because just like asset seizure, right? Because just like asset seizure, right? Because just like Kenism, the difference is Kenism, the difference is Kenism, the difference is they don't have a global reserve they don't have a global reserve they don't have a global reserve currency. So they're it's basically just currency. So they're it's basically just currency. So they're it's basically just like a tax on their own people. Number like a tax on their own people. Number like a tax on their own people. Number one. So that's a big difference. They're one. So that's a big difference. They're one. So that's a big difference. They're not exporting it to others. And number not exporting it to others. And number not exporting it to others. And number two is with that tax they've actually two is with that tax they've actually two is with that tax they've actually allocated it intelligently because they allocated it intelligently because they allocated it intelligently because they have better central planners than have better central planners than have better central planners than America does. Why do they have better America does. Why do they have better America does. Why do they have better central planners? It's because uh at central planners? It's because uh at central planners? It's because uh at every level like the way the communist every level like the way the communist every level like the way the communist party works is um you run a thousand party works is um you run a thousand party works is um you run a thousand person town and then you can run a person town and then you can run a person town and then you can run a 10,000 person city, small city, then 10,000 person city, small city, then 10,000 person city, small city, then 100,000 person and so on and so on. It's 100,000 person and so on and so on. It's 100,000 person and so on and so on. It's like a it's like a giant corporation like a it's like a giant corporation like a it's like a giant corporation where you get promotions based on both where you get promotions based on both where you get promotions based on both patronage and your numbers. And patronage and your numbers. And patronage and your numbers. And essentially the deal that Dung Xiaoping essentially the deal that Dung Xiaoping essentially the deal that Dung Xiaoping made after taking over China and making made after taking over China and making made after taking over China and making it capitalist in 1978 is that it capitalist in 1978 is that it capitalist in 1978 is that the the guy who ran a million person the the guy who ran a million person the the guy who ran a million person city could take 10% off the top and city could take 10% off the top and city could take 10% off the top and become a billionaire if he increased the become a billionaire if he increased the become a billionaire if he increased the productivity of that city by 10 billion. productivity of that city by 10 billion. productivity of that city by 10 billion. So it's as if they had an informal So it's as if they had an informal So it's as if they had an informal equity stake via corruption. Right now equity stake via corruption. Right now equity stake via corruption. Right now >> that's so wild. >> that's so wild. >> that's so wild. >> It's wild. Right? And there's a book >> It's wild. Right? And there's a book >> It's wild. Right? And there's a book called How China Works on this. Now, the called How China Works on this. Now, the called How China Works on this. Now, the thing is like corruption is bad. What thing is like corruption is bad. What thing is like corruption is bad. What you prefer is the Singapore style where you prefer is the Singapore style where you prefer is the Singapore style where public officials are just incorruptible public officials are just incorruptible public officials are just incorruptible and they're paid well and and so on and and they're paid well and and so on and and they're paid well and and so on and so forth because they're managing these so forth because they're managing these so forth because they're managing these giant budgets. So, you get highly giant budgets. So, you get highly giant budgets. So, you get highly competent people running them, right? competent people running them, right? competent people running them, right? However, while corruption is bad, However, while corruption is bad, However, while corruption is bad, communism is more corrupt and worse. So communism is more corrupt and worse. So communism is more corrupt and worse. So moving towards that corrupt kind of moving towards that corrupt kind of moving towards that corrupt kind of intermediate state meant that these guys intermediate state meant that these guys intermediate state meant that these guys who were running these cities had some who were running these cities had some who were running these cities had some incentive a significant incentive to incentive a significant incentive to incentive a significant incentive to allow for economic growth within their allow for economic growth within their allow for economic growth within their cities and all these Chinese cities cities and all these Chinese cities cities and all these Chinese cities competed with each other and as a competed with each other and as a competed with each other and as a consequence that's why China rose. consequence that's why China rose. consequence that's why China rose. There's more I can say about it, but There's more I can say about it, but There's more I can say about it, but basically um the uh the point being that basically um the uh the point being that basically um the uh the point being that when China prints money, they actually when China prints money, they actually when China prints money, they actually use the tax. A it's mainly a domestic use the tax. A it's mainly a domestic use the tax. A it's mainly a domestic tax. B they use it more intelligently tax. B they use it more intelligently tax. B they use it more intelligently because they have better central because they have better central because they have better central planners. Why do they have better planners. Why do they have better planners. Why do they have better central planners? Because they're central planners? Because they're central planners? Because they're actually naturally selected for kind of actually naturally selected for kind of actually naturally selected for kind of an entrepreneurial type within China in an entrepreneurial type within China in an entrepreneurial type within China in part, a quantitative type which they're part, a quantitative type which they're part, a quantitative type which they're not in America because they can get a not in America because they can get a not in America because they can get a cut of it in China, which they can't cut of it in China, which they can't cut of it in China, which they can't really in America as I'll get to. And really in America as I'll get to. And really in America as I'll get to. And then finally um they get another benefit then finally um they get another benefit then finally um they get another benefit from it which is the one that people from it which is the one that people from it which is the one that people talk about which is from the perspective talk about which is from the perspective talk about which is from the perspective of exports their uh currency being low of exports their uh currency being low of exports their uh currency being low in value means that their exports are in value means that their exports are in value means that their exports are cheaper abroad. So essentially they get cheaper abroad. So essentially they get cheaper abroad. So essentially they get multiple benefits out of it if they can multiple benefits out of it if they can multiple benefits out of it if they can allocate the money correctly. The allocate the money correctly. The allocate the money correctly. The problem is for America is that the problem is for America is that the problem is for America is that the global reserve currency is the greatest global reserve currency is the greatest global reserve currency is the greatest business model of all time. So the business model of all time. So the business model of all time. So the difference with the American difference with the American difference with the American Keynesianism is uh that when a dollar is Keynesianism is uh that when a dollar is Keynesianism is uh that when a dollar is printed, it's dollar inflation is global printed, it's dollar inflation is global printed, it's dollar inflation is global taxation. So it is not being imposed on taxation. So it is not being imposed on taxation. So it is not being imposed on 300 million Americans. It's being 300 million Americans. It's being 300 million Americans. It's being imposed on the billions of dollar imposed on the billions of dollar imposed on the billions of dollar holders worldwide who hold dollars holders worldwide who hold dollars holders worldwide who hold dollars directly or indirectly. For example, directly or indirectly. For example, directly or indirectly. For example, they hold uh stocks which can only be they hold uh stocks which can only be they hold uh stocks which can only be bought in dollars or they have Delaware bought in dollars or they have Delaware bought in dollars or they have Delaware companies or something like that, right? companies or something like that, right? companies or something like that, right? Basically, they're part of the US Basically, they're part of the US Basically, they're part of the US financial legal system directly or financial legal system directly or financial legal system directly or indirectly, right? I mean to to give you indirectly, right? I mean to to give you indirectly, right? I mean to to give you some sense even in the 2010s Alibaba some sense even in the 2010s Alibaba some sense even in the 2010s Alibaba China's most valuable company went China's most valuable company went China's most valuable company went public on the NY public on the NY public on the NY >> right that was how ridiculously dominant >> right that was how ridiculously dominant >> right that was how ridiculously dominant the US financial legal system was okay the US financial legal system was okay the US financial legal system was okay so dollar inflation is global taxation so dollar inflation is global taxation so dollar inflation is global taxation actually inverts the traditional MAGA actually inverts the traditional MAGA actually inverts the traditional MAGA understanding or the MAGA understanding understanding or the MAGA understanding understanding or the MAGA understanding of the world the MAGA understanding of of the world the MAGA understanding of of the world the MAGA understanding of the world is that the world is the world is that the world is the world is that the world is exploiting Americans and there's some exploiting Americans and there's some exploiting Americans and there's some truth to this where like you have a few truth to this where like you have a few truth to this where like you have a few hundred bucks going to people in Maui hundred bucks going to people in Maui hundred bucks going to people in Maui for example when their house is burned for example when their house is burned for example when their house is burned down, but billions going to Ukraine. And down, but billions going to Ukraine. And down, but billions going to Ukraine. And the MAGA person does see that and there the MAGA person does see that and there the MAGA person does see that and there is truth to that. They're saying, "We is truth to that. They're saying, "We is truth to that. They're saying, "We are citizens of America and we're are citizens of America and we're are citizens of America and we're getting no money, but these foreign wars getting no money, but these foreign wars getting no money, but these foreign wars are getting money. What's going on?" And are getting money. What's going on?" And are getting money. What's going on?" And so and so forth. That's true. What so and so forth. That's true. What so and so forth. That's true. What they're not seeing, however, is the more they're not seeing, however, is the more they're not seeing, however, is the more subtle and invisible thing, which is the subtle and invisible thing, which is the subtle and invisible thing, which is the global taxation where billions of people global taxation where billions of people global taxation where billions of people are being taxed by dollar inflation. And are being taxed by dollar inflation. And are being taxed by dollar inflation. And uh Americans as as a set are benefiting uh Americans as as a set are benefiting uh Americans as as a set are benefiting from that even if the red American gets from that even if the red American gets from that even if the red American gets it last. Why did it say Americans as a it last. Why did it say Americans as a it last. Why did it say Americans as a set? When the money is printed, set? When the money is printed, set? When the money is printed, blues got it first because blue banks blues got it first because blue banks blues got it first because blue banks would get it first. That's the so-called would get it first. That's the so-called would get it first. That's the so-called uh that's another key part of it which uh that's another key part of it which uh that's another key part of it which is the um the cantalin effect, right? is the um the cantalin effect, right? is the um the cantalin effect, right? You take these simple principles and you You take these simple principles and you You take these simple principles and you combine them and you get a fairly combine them and you get a fairly combine them and you get a fairly complicated dynamic, right? The cantalin complicated dynamic, right? The cantalin complicated dynamic, right? The cantalin effect says basically whoever's closer effect says basically whoever's closer effect says basically whoever's closer to the money printer gets it first. to the money printer gets it first. to the money printer gets it first. >> Okay? So, for example, visualize them >> Okay? So, for example, visualize them >> Okay? So, for example, visualize them rolling off a bunch of new hundreds. rolling off a bunch of new hundreds. rolling off a bunch of new hundreds. They don't actually do it like that. They don't actually do it like that. They don't actually do it like that. They hit a button digitally, but if they They hit a button digitally, but if they They hit a button digitally, but if they roll off a bunch of new hundreds, a roll off a bunch of new hundreds, a roll off a bunch of new hundreds, a bunch of new counterfeit 100s, the first bunch of new counterfeit 100s, the first bunch of new counterfeit 100s, the first guys who get those hundreds, like the guys who get those hundreds, like the guys who get those hundreds, like the banks, can use them to buy assets and so banks, can use them to buy assets and so banks, can use them to buy assets and so on. And then eventually eventually it on. And then eventually eventually it on. And then eventually eventually it filters down so that some cashier in filters down so that some cashier in filters down so that some cashier in Kansas gets that counterfeited new $100 Kansas gets that counterfeited new $100 Kansas gets that counterfeited new $100 bill, but its purchasing powers crash by bill, but its purchasing powers crash by bill, but its purchasing powers crash by the time it gets to them. the time it gets to them. the time it gets to them. >> Yep. >> Yep. >> Yep. >> Okay. So the red American is correct in >> Okay. So the red American is correct in >> Okay. So the red American is correct in a sense. They feel that something bad is a sense. They feel that something bad is a sense. They feel that something bad is happening to them and their intuition is happening to them and their intuition is happening to them and their intuition is correct, but the mechanism is important. correct, but the mechanism is important. correct, but the mechanism is important. It's not that the person in Thailand or It's not that the person in Thailand or It's not that the person in Thailand or Uruguay is oppressing the red American. Uruguay is oppressing the red American. Uruguay is oppressing the red American. They're also getting taxed They're also getting taxed They're also getting taxed by the dollar empire. by the dollar empire. by the dollar empire. >> We'll get back to the show in just a >> We'll get back to the show in just a >> We'll get back to the show in just a moment, but first, let's talk about the moment, but first, let's talk about the moment, but first, let's talk about the most expensive mistake crypto traders most expensive mistake crypto traders most expensive mistake crypto traders are making right now. 70% of US crypto are making right now. 70% of US crypto are making right now. 70% of US crypto traders think tax obligations only apply traders think tax obligations only apply traders think tax obligations only apply to centralized exchanges. If that's you, to centralized exchanges. If that's you, to centralized exchanges. If that's you, you are wrong. Unfortunately, most you are wrong. Unfortunately, most you are wrong. Unfortunately, most people do not realize every cryptoto people do not realize every cryptoto people do not realize every cryptoto crypto trade is taxable. And for the crypto trade is taxable. And for the crypto trade is taxable. And for the first time ever, exchanges are now first time ever, exchanges are now first time ever, exchanges are now required to report your digital asset required to report your digital asset required to report your digital asset sales directly to the IRS. If your sales directly to the IRS. If your sales directly to the IRS. If your records don't match theirs, you've got a records don't match theirs, you've got a records don't match theirs, you've got a problem. Some, formerly cryptot tax problem. Some, formerly cryptot tax problem. Some, formerly cryptot tax calculator, was built specifically to calculator, was built specifically to calculator, was built specifically to solve this problem. It supports Turboax solve this problem. It supports Turboax solve this problem. It supports Turboax along with over 3,500 along with over 3,500 along with over 3,500 exchange, wallet, and crypto exchange, wallet, and crypto exchange, wallet, and crypto integrations. It handles DeFi, NFTts, integrations. It handles DeFi, NFTts, integrations. It handles DeFi, NFTts, staking, and airdrops with full support staking, and airdrops with full support staking, and airdrops with full support for USP specific tax rules. And it for USP specific tax rules. And it for USP specific tax rules. And it strips out spam tokens so junk doesn't strips out spam tokens so junk doesn't strips out spam tokens so junk doesn't corrupt your actual gains and losses. corrupt your actual gains and losses. corrupt your actual gains and losses. Some generates IRS ready reports that Some generates IRS ready reports that Some generates IRS ready reports that maximize your deductions and minimize maximize your deductions and minimize maximize your deductions and minimize what you owe. If you're ready to turn what you owe. If you're ready to turn what you owe. If you're ready to turn crypto chaos into confidence, click the crypto chaos into confidence, click the crypto chaos into confidence, click the link in the show notes and use code link in the show notes and use code link in the show notes and use code tomv20 tomv20 tomv20 for 20% off your first year at Sum. Now, for 20% off your first year at Sum. Now, for 20% off your first year at Sum. Now, let's get back to the show. The dollar let's get back to the show. The dollar let's get back to the show. The dollar empire, just um to get back to the empire, just um to get back to the empire, just um to get back to the initial question, which is what what is initial question, which is what what is initial question, which is what what is it about this moment that's causing all it about this moment that's causing all it about this moment that's causing all of this change? of this change? of this change? >> Ah, yes. Right. >> Ah, yes. Right. >> Ah, yes. Right. >> So, it feels to me like what you're >> So, it feels to me like what you're >> So, it feels to me like what you're saying is we are in uh latestage empire. saying is we are in uh latestage empire. saying is we are in uh latestage empire. Keynesian economics has run its course. Keynesian economics has run its course. Keynesian economics has run its course. We are in a postw World War II era where We are in a postw World War II era where We are in a postw World War II era where there's been stability for so long that there's been stability for so long that there's been stability for so long that people begin to think this is a people begin to think this is a people begin to think this is a birthright and you layer on top of that birthright and you layer on top of that birthright and you layer on top of that the internet changing the world the internet changing the world the internet changing the world globalizing things more and you get this globalizing things more and you get this globalizing things more and you get this convergence of factors where uh you have convergence of factors where uh you have convergence of factors where uh you have entitled people who are expecting a entitled people who are expecting a entitled people who are expecting a whole bunch of stuff for free. They're whole bunch of stuff for free. They're whole bunch of stuff for free. They're getting that stuff for free by printing, getting that stuff for free by printing, getting that stuff for free by printing, not recognizing that that printing is not recognizing that that printing is not recognizing that that printing is generating massive amounts of debt, generating massive amounts of debt, generating massive amounts of debt, which is generating massive amounts of which is generating massive amounts of which is generating massive amounts of inflation. Uh, and you have a rising inflation. Uh, and you have a rising inflation. Uh, and you have a rising China, which is completely disrupting China, which is completely disrupting China, which is completely disrupting the world order in terms of you've got a the world order in terms of you've got a the world order in terms of you've got a rising superpower now to challenge the rising superpower now to challenge the rising superpower now to challenge the declining superpower. And so, you put declining superpower. And so, you put declining superpower. And so, you put all that together, it's just inevitably all that together, it's just inevitably all that together, it's just inevitably going to be this moment of tremendous going to be this moment of tremendous going to be this moment of tremendous change. And now on top of that, let's change. And now on top of that, let's change. And now on top of that, let's layer on what is the most layer on what is the most layer on what is the most transformational technology certainly transformational technology certainly transformational technology certainly since the internet. I would say it's since the internet. I would say it's since the internet. I would say it's going to be even more transformational going to be even more transformational going to be even more transformational than that. But regardless, you've got than that. But regardless, you've got than that. But regardless, you've got this one-two punch of internet follow this one-two punch of internet follow this one-two punch of internet follow internet chased by multiple economic internet chased by multiple economic internet chased by multiple economic crises brought to you by debt and money crises brought to you by debt and money crises brought to you by debt and money printing followed by the next radical printing followed by the next radical printing followed by the next radical transformation technologically when we transformation technologically when we transformation technologically when we haven't even finished dealing with the haven't even finished dealing with the haven't even finished dealing with the internet. Yep, internet. Yep, internet. Yep, >> that's right. Here's my story. In 1991, >> that's right. Here's my story. In 1991, >> that's right. Here's my story. In 1991, right at the end of the Cold War, okay, right at the end of the Cold War, okay, right at the end of the Cold War, okay, the US was the hyperpower, the most the US was the hyperpower, the most the US was the hyperpower, the most dominant power ever in history. And dominant power ever in history. And dominant power ever in history. And Democrats and Republicans were dominant Democrats and Republicans were dominant Democrats and Republicans were dominant and the internet was tiny and China and the internet was tiny and China and the internet was tiny and China China was tiny. Okay, China was tiny. Okay, China was tiny. Okay, >> basically commerce on the internet, >> basically commerce on the internet, >> basically commerce on the internet, there's something called the NSF there's something called the NSF there's something called the NSF acceptable use policy. It was only acceptable use policy. It was only acceptable use policy. It was only actually legalized in 1991 and China was actually legalized in 1991 and China was actually legalized in 1991 and China was only 10 years into going capitalist. only 10 years into going capitalist. only 10 years into going capitalist. Okay, Okay, Okay, >> by 2010, >> by 2010, >> by 2010, this is the first really important this is the first really important this is the first really important graph. Do you see this graph? You see it graph. Do you see this graph? You see it graph. Do you see this graph? You see it says newspaper advertising revenue says newspaper advertising revenue says newspaper advertising revenue adjusted for inflation. adjusted for inflation. adjusted for inflation. >> Yep. >> Yep. >> Yep. >> So, let's call the newspapers a proxy >> So, let's call the newspapers a proxy >> So, let's call the newspapers a proxy for Democrats, okay? Because they're 90% for Democrats, okay? Because they're 90% for Democrats, okay? Because they're 90% Democrats or what have you in terms of Democrats or what have you in terms of Democrats or what have you in terms of journalists, right? Their peak was 2000, journalists, right? Their peak was 2000, journalists, right? Their peak was 2000, right? People I think in retrospect will right? People I think in retrospect will right? People I think in retrospect will say peak America was 2000, 2001, right say peak America was 2000, 2001, right say peak America was 2000, 2001, right before 9/11. Okay? So their peak was before 9/11. Okay? So their peak was before 9/11. Okay? So their peak was here and then they kind of flatten and here and then they kind of flatten and here and then they kind of flatten and then crash after the financial crisis. then crash after the financial crisis. then crash after the financial crisis. And look at how Google's revenue and And look at how Google's revenue and And look at how Google's revenue and Facebook's revenue, the green chart, Facebook's revenue, the green chart, Facebook's revenue, the green chart, just gosh like this. just gosh like this. just gosh like this. >> Yeah. For anybody not looking at their >> Yeah. For anybody not looking at their >> Yeah. For anybody not looking at their phone is basically a straight line up phone is basically a straight line up phone is basically a straight line up again. again. again. >> Yes, that's right. So Google and >> Yes, that's right. So Google and >> Yes, that's right. So Google and Facebook start going vertical in the Facebook start going vertical in the Facebook start going vertical in the late 2000s, early 2010s. Okay. And late 2000s, early 2010s. Okay. And late 2000s, early 2010s. Okay. And that's because the financial crisis in that's because the financial crisis in that's because the financial crisis in 2008 caused a shock which forced people 2008 caused a shock which forced people 2008 caused a shock which forced people to do more with less. And they forced to do more with less. And they forced to do more with less. And they forced them to look at what could do that and them to look at what could do that and them to look at what could do that and say the one big part was looking at say the one big part was looking at say the one big part was looking at digital deflation which was the digital deflation which was the digital deflation which was the internet. Okay. And ads are one piece. internet. Okay. And ads are one piece. internet. Okay. And ads are one piece. Classifies are another. There's many Classifies are another. There's many Classifies are another. There's many other piece of this. This is just one other piece of this. This is just one other piece of this. This is just one very quantitative chart that shows the very quantitative chart that shows the very quantitative chart that shows the scale of the disruption to a very scale of the disruption to a very scale of the disruption to a very important Democrat stronghold. Okay. important Democrat stronghold. Okay. important Democrat stronghold. Okay. Then in 2010 the same thing was Then in 2010 the same thing was Then in 2010 the same thing was happening to the Republicans because the happening to the Republicans because the happening to the Republicans because the same financial stress after the same financial stress after the same financial stress after the financial crisis pushed people to do financial crisis pushed people to do financial crisis pushed people to do more with less and they looked overseas more with less and they looked overseas more with less and they looked overseas to China. And that was the moment at to China. And that was the moment at to China. And that was the moment at which Chinese manufacturing flipped which Chinese manufacturing flipped which Chinese manufacturing flipped Republican manufacturing. Republican manufacturing. Republican manufacturing. >> Okay. So right at the same time the >> Okay. So right at the same time the >> Okay. So right at the same time the internet was disrupting Democrats, China internet was disrupting Democrats, China internet was disrupting Democrats, China disrupting Republicans in manufacturing. disrupting Republicans in manufacturing. disrupting Republicans in manufacturing. Okay. So this meant that the literally Okay. So this meant that the literally Okay. So this meant that the literally the pie was shrinking for both Democrats the pie was shrinking for both Democrats the pie was shrinking for both Democrats and Republicans. So how' they react with and Republicans. So how' they react with and Republicans. So how' they react with Democrats? They reacted by attacking Democrats? They reacted by attacking Democrats? They reacted by attacking their two competing factions which were their two competing factions which were their two competing factions which were Republicans and the internet. So, first Republicans and the internet. So, first Republicans and the internet. So, first they attacked Republicans. And this is a they attacked Republicans. And this is a they attacked Republicans. And this is a chart, New York Times word usage chart, New York Times word usage chart, New York Times word usage frequency 1970 to 2018. It's small over frequency 1970 to 2018. It's small over frequency 1970 to 2018. It's small over here. You can Google that and put that here. You can Google that and put that here. You can Google that and put that on screen. But it basically shows like on screen. But it basically shows like on screen. But it basically shows like toxic masculinity, white privilege, all toxic masculinity, white privilege, all toxic masculinity, white privilege, all those things went vertical in the year those things went vertical in the year those things went vertical in the year 2013. Not before, not after. I mean, 2013. Not before, not after. I mean, 2013. Not before, not after. I mean, they went after, but the thing is they they went after, but the thing is they they went after, but the thing is they went totally vertical then because the went totally vertical then because the went totally vertical then because the New York Times made an editorial New York Times made an editorial New York Times made an editorial decision post 2013 to basically go woke. decision post 2013 to basically go woke. decision post 2013 to basically go woke. Why? that boosted traffic. Why' they Why? that boosted traffic. Why' they Why? that boosted traffic. Why' they need traffic? Because internet disrupted need traffic? Because internet disrupted need traffic? Because internet disrupted them. And uh this was also an them. And uh this was also an them. And uh this was also an ideological weapon against the ideological weapon against the ideological weapon against the Republicans. So they used wokeness Republicans. So they used wokeness Republicans. So they used wokeness against Republicans to argue we're against Republicans to argue we're against Republicans to argue we're morally good, you're evil and racist, morally good, you're evil and racist, morally good, you're evil and racist, therefore we should tax you and give it therefore we should tax you and give it therefore we should tax you and give it to our clients. Okay? So wokeness was to our clients. Okay? So wokeness was to our clients. Okay? So wokeness was the Democrat weapon against Republicans. the Democrat weapon against Republicans. the Democrat weapon against Republicans. And then the tech lash was the Democrat And then the tech lash was the Democrat And then the tech lash was the Democrat weapon against the internets. As you me weapon against the internets. As you me weapon against the internets. As you me during this time in the 2010s all kinds during this time in the 2010s all kinds during this time in the 2010s all kinds of tech guys were cancelled for all of tech guys were cancelled for all of tech guys were cancelled for all kinds of things from the GitHub CEO kinds of things from the GitHub CEO kinds of things from the GitHub CEO obviously Uber Travis Clanic was a very obviously Uber Travis Clanic was a very obviously Uber Travis Clanic was a very prominent example of this but tech guys prominent example of this but tech guys prominent example of this but tech guys large and small were forced to hire DI large and small were forced to hire DI large and small were forced to hire DI Democrats at their companies. They were Democrats at their companies. They were Democrats at their companies. They were essentially basically surveiled on the essentially basically surveiled on the essentially basically surveiled on the internet like you you like one thing, internet like you you like one thing, internet like you you like one thing, you hit like on one button and Democrats you hit like on one button and Democrats you hit like on one button and Democrats would try to basically destroy you, take would try to basically destroy you, take would try to basically destroy you, take your company and so on and so forth your company and so on and so forth your company and so on and so forth because they were in wartime mode. You because they were in wartime mode. You because they were in wartime mode. You know, you've heard this really fast. I know, you've heard this really fast. I know, you've heard this really fast. I want to abstract this out to a want to abstract this out to a want to abstract this out to a principle. This is really interesting principle. This is really interesting principle. This is really interesting bology. So you're saying all right, we bology. So you're saying all right, we bology. So you're saying all right, we have conditions where things are have conditions where things are have conditions where things are declining. declining. declining. uh you've got as as a proxy you've got uh you've got as as a proxy you've got uh you've got as as a proxy you've got newspaper publication going down but newspaper publication going down but newspaper publication going down but it's forced by the fact that we're it's forced by the fact that we're it's forced by the fact that we're having this economic crisis but it's having this economic crisis but it's having this economic crisis but it's facilitated in a way by the internet. So facilitated in a way by the internet. So facilitated in a way by the internet. So the internet makes things cheaper that the internet makes things cheaper that the internet makes things cheaper that otherwise may have just gone away or otherwise may have just gone away or otherwise may have just gone away or whatever. Uh and so you're getting this whatever. Uh and so you're getting this whatever. Uh and so you're getting this cross effect where both the Democrats cross effect where both the Democrats cross effect where both the Democrats and Republicans are they realize their and Republicans are they realize their and Republicans are they realize their pie is shrinking for different reasons pie is shrinking for different reasons pie is shrinking for different reasons but their pie is shrinking and they but their pie is shrinking and they but their pie is shrinking and they begin fighting. So I'm the outsider here begin fighting. So I'm the outsider here begin fighting. So I'm the outsider here looking at this sudden moment of rapid looking at this sudden moment of rapid looking at this sudden moment of rapid disruption and change. I'm trying to disruption and change. I'm trying to disruption and change. I'm trying to find what the mechanism is. I come sort find what the mechanism is. I come sort find what the mechanism is. I come sort of squarely to debt which is responsible of squarely to debt which is responsible of squarely to debt which is responsible for um the economic crisis. But what for um the economic crisis. But what for um the economic crisis. But what you're really driving home which is very you're really driving home which is very you're really driving home which is very interesting is that there's an internet interesting is that there's an internet interesting is that there's an internet thing that you have to take into thing that you have to take into thing that you have to take into consideration going to your force graph. consideration going to your force graph. consideration going to your force graph. There's an internet thing that's There's an internet thing that's There's an internet thing that's happening that I'm not giving enough happening that I'm not giving enough happening that I'm not giving enough credit to. And then there's that credit to. And then there's that credit to. And then there's that knock-on sort of populist battle that's knock-on sort of populist battle that's knock-on sort of populist battle that's happening with the Democrats and happening with the Democrats and happening with the Democrats and Republicans that begins to play out uh Republicans that begins to play out uh Republicans that begins to play out uh very aggressively within the US. But the very aggressively within the US. But the very aggressively within the US. But the US being the world's dominant US being the world's dominant US being the world's dominant superpower, the world's leading economy, superpower, the world's leading economy, superpower, the world's leading economy, that begins to have ripple effects out that begins to have ripple effects out that begins to have ripple effects out to the rest of the world. to the rest of the world. to the rest of the world. >> Am I mapping the mechanism here? >> Am I mapping the mechanism here? >> Am I mapping the mechanism here? >> That's right. And let me give a little >> That's right. And let me give a little >> That's right. And let me give a little bit more and let me go and add to your bit more and let me go and add to your bit more and let me go and add to your points. Okay, so let me show a little points. Okay, so let me show a little points. Okay, so let me show a little and then add to the debt. Okay, so this and then add to the debt. Okay, so this and then add to the debt. Okay, so this is the Democrat side. Basically their is the Democrat side. Basically their is the Democrat side. Basically their pie is shrinking. So they retallied pie is shrinking. So they retallied pie is shrinking. So they retallied against their bordering factions. against their bordering factions. against their bordering factions. Wokeness versus Republicans and techlash Wokeness versus Republicans and techlash Wokeness versus Republicans and techlash versus the internet. Okay. Republicans versus the internet. Okay. Republicans versus the internet. Okay. Republicans meanwhile they had been disrupted by meanwhile they had been disrupted by meanwhile they had been disrupted by Chinese manufacturing. So uh so they're Chinese manufacturing. So uh so they're Chinese manufacturing. So uh so they're pio shrinking. So that's why because you pio shrinking. So that's why because you pio shrinking. So that's why because you know people talked about how all these know people talked about how all these know people talked about how all these rust belt guys had lost their jobs and rust belt guys had lost their jobs and rust belt guys had lost their jobs and Trump started saying he was the one who Trump started saying he was the one who Trump started saying he was the one who said China. Remember in 2015? said China. Remember in 2015? said China. Remember in 2015? >> Oh yes. >> Oh yes. >> Oh yes. >> Right. So China had not yet disrupted >> Right. So China had not yet disrupted >> Right. So China had not yet disrupted the Democrats so they didn't care about the Democrats so they didn't care about the Democrats so they didn't care about it. The internet was not yet on it. The internet was not yet on it. The internet was not yet on Republican radars. They didn't care Republican radars. They didn't care Republican radars. They didn't care about it. So in the mid2010s, if you about it. So in the mid2010s, if you about it. So in the mid2010s, if you look at their rhetoric, Republicans look at their rhetoric, Republicans look at their rhetoric, Republicans cared about China because it had been cared about China because it had been cared about China because it had been taking their jobs and Democrats cared taking their jobs and Democrats cared taking their jobs and Democrats cared about the internet because they've been about the internet because they've been about the internet because they've been taking their jobs. Okay? So Trump was a taking their jobs. Okay? So Trump was a taking their jobs. Okay? So Trump was a reaction of Republicans uh versus reaction of Republicans uh versus reaction of Republicans uh versus Democrats. And you know the the people Democrats. And you know the the people Democrats. And you know the the people call the right reactionary because it call the right reactionary because it call the right reactionary because it goes second. So wokeness really booted goes second. So wokeness really booted goes second. So wokeness really booted up in 2013 and Trump booted up also as a up in 2013 and Trump booted up also as a up in 2013 and Trump booted up also as a reaction in by 2015. Right. Okay. So reaction in by 2015. Right. Okay. So reaction in by 2015. Right. Okay. So then um Republicans also elected Trump then um Republicans also elected Trump then um Republicans also elected Trump to do what? The trade war versus China. to do what? The trade war versus China. to do what? The trade war versus China. Okay. So this was a four-faction battle Okay. So this was a four-faction battle Okay. So this was a four-faction battle where Democrats tried wokeness versus where Democrats tried wokeness versus where Democrats tried wokeness versus Republicans and the tech lash versus the Republicans and the tech lash versus the Republicans and the tech lash versus the internet. Republicans tried Trump versus internet. Republicans tried Trump versus internet. Republicans tried Trump versus Democrats and the trade war versus Democrats and the trade war versus Democrats and the trade war versus China. Except they lost. Basically China. Except they lost. Basically China. Except they lost. Basically essentially here's the Magnificent 7 for essentially here's the Magnificent 7 for essentially here's the Magnificent 7 for example. There's a bunch of graphs I can example. There's a bunch of graphs I can example. There's a bunch of graphs I can show you. See how this just rips up into show you. See how this just rips up into show you. See how this just rips up into the right and the remaining 493 stocks the right and the remaining 493 stocks the right and the remaining 493 stocks are flat. are flat. are flat. >> Yep. >> Yep. >> Yep. >> So, Democrats lost to the internet. >> So, Democrats lost to the internet. >> So, Democrats lost to the internet. Basically, they lost control over uh you Basically, they lost control over uh you Basically, they lost control over uh you know, media. They lost control over know, media. They lost control over know, media. They lost control over money and they lost control over speech. money and they lost control over speech. money and they lost control over speech. Democrats lost control over media to AI Democrats lost control over media to AI Democrats lost control over media to AI because Hollywood is being disrupted because Hollywood is being disrupted because Hollywood is being disrupted now. Like clearly that where that's now. Like clearly that where that's now. Like clearly that where that's going to end up is Hollywood loses going to end up is Hollywood loses going to end up is Hollywood loses control. control. control. >> They've lost control over money cuz they >> They've lost control over money cuz they >> They've lost control over money cuz they lost uh control with crypto. and they lost uh control with crypto. and they lost uh control with crypto. and they lost control over speech because social lost control over speech because social lost control over speech because social media got uncensored, right? So, and and media got uncensored, right? So, and and media got uncensored, right? So, and and this was a huge battle. 2024 can be this was a huge battle. 2024 can be this was a huge battle. 2024 can be conceptualized as the Democrats going conceptualized as the Democrats going conceptualized as the Democrats going all out against, among other things, all out against, among other things, all out against, among other things, their tech disruptors because they tried their tech disruptors because they tried their tech disruptors because they tried to regulate AI with the Biden bills to to regulate AI with the Biden bills to to regulate AI with the Biden bills to stop AI. They tried to stop crypto with stop AI. They tried to stop crypto with stop AI. They tried to stop crypto with an allout attack by Gary Gensler against an allout attack by Gary Gensler against an allout attack by Gary Gensler against crypto. and they tried to control speech crypto. and they tried to control speech crypto. and they tried to control speech with all the censorship and saying it's with all the censorship and saying it's with all the censorship and saying it's disinformation and whatnot and they lost disinformation and whatnot and they lost disinformation and whatnot and they lost a massive pitch battle, but they lost. a massive pitch battle, but they lost. a massive pitch battle, but they lost. Okay. Now, in 2025, I would argue Okay. Now, in 2025, I would argue Okay. Now, in 2025, I would argue basically the Republicans have also basically the Republicans have also basically the Republicans have also unfortunately lost to China. I'm more unfortunately lost to China. I'm more unfortunately lost to China. I'm more sympathetic to the Republicans in some sympathetic to the Republicans in some sympathetic to the Republicans in some ways on this, but the the Chinese ways on this, but the the Chinese ways on this, but the the Chinese basically won in my view the trade war, basically won in my view the trade war, basically won in my view the trade war, the proxy war, and the Cold War. Why? the proxy war, and the Cold War. Why? the proxy war, and the Cold War. Why? They have the world's largest navy. they They have the world's largest navy. they They have the world's largest navy. they have this gigantic manufacturing have this gigantic manufacturing have this gigantic manufacturing buildout. Um the uh the US national buildout. Um the uh the US national buildout. Um the uh the US national security strategy basically says that security strategy basically says that security strategy basically says that they're withdrawing from East Asia and they're withdrawing from East Asia and they're withdrawing from East Asia and that's a 2025 strategy. It says it in a that's a 2025 strategy. It says it in a that's a 2025 strategy. It says it in a way of a fighting retreat where it says way of a fighting retreat where it says way of a fighting retreat where it says oh Japan needs to take on more security oh Japan needs to take on more security oh Japan needs to take on more security responsibilities and so on. But responsibilities and so on. But responsibilities and so on. But fundamentally it's very different from fundamentally it's very different from fundamentally it's very different from the JFK bear any burden pay any price to the JFK bear any burden pay any price to the JFK bear any burden pay any price to feed communism. And so the the net of it feed communism. And so the the net of it feed communism. And so the the net of it is basically that um Republicans have is basically that um Republicans have is basically that um Republicans have been disrupted manufacturing military by been disrupted manufacturing military by been disrupted manufacturing military by China. Democrats have lost on the China. Democrats have lost on the China. Democrats have lost on the internet and we're in kind of the the internet and we're in kind of the the internet and we're in kind of the the mop-up phase right now where for example mop-up phase right now where for example mop-up phase right now where for example the the last ditch efforts by the the last ditch efforts by the the last ditch efforts by Republicans to tariff China at best will Republicans to tariff China at best will Republicans to tariff China at best will protect the home American market. But if protect the home American market. But if protect the home American market. But if you look abroad, you're seeing BYD out you look abroad, you're seeing BYD out you look abroad, you're seeing BYD out competing even Tesla in neutral markets competing even Tesla in neutral markets competing even Tesla in neutral markets like Hungary or Uruguay or something like Hungary or Uruguay or something like Hungary or Uruguay or something like that, right? Even our best guy Elon like that, right? Even our best guy Elon like that, right? Even our best guy Elon can't beat the Chinese in neutral can't beat the Chinese in neutral can't beat the Chinese in neutral markets where they're America can't markets where they're America can't markets where they're America can't impose tariffs. Conversely, what impose tariffs. Conversely, what impose tariffs. Conversely, what Republic what Democrats are doing is Republic what Democrats are doing is Republic what Democrats are doing is they're trying to have their unions they're trying to have their unions they're trying to have their unions block the use of AI at the Atlantic and block the use of AI at the Atlantic and block the use of AI at the Atlantic and the New York Times. It's right. So the New York Times. It's right. So the New York Times. It's right. So they're they're trying to wall they're they're trying to wall they're they're trying to wall themselves off within those domains that themselves off within those domains that themselves off within those domains that they still have formal power over to they still have formal power over to they still have formal power over to stop that disruption from hitting them stop that disruption from hitting them stop that disruption from hitting them rather than leaning into it, you know, rather than leaning into it, you know, rather than leaning into it, you know, and and disrupting themselves. Right? So and and disrupting themselves. Right? So and and disrupting themselves. Right? So now the debt, how does that's the now the debt, how does that's the now the debt, how does that's the background force here. But but this background force here. But but this background force here. But but this factional thing, by the way, there's factional thing, by the way, there's factional thing, by the way, there's there's one more edit that I can add to there's one more edit that I can add to there's one more edit that I can add to that, which is the internet is splitting that, which is the internet is splitting that, which is the internet is splitting apart into tech America and the global apart into tech America and the global apart into tech America and the global internet. And I think unfortunately tech internet. And I think unfortunately tech internet. And I think unfortunately tech America is cruising for a bruising. America is cruising for a bruising. America is cruising for a bruising. Let's tech America like Silicon Valley. Let's tech America like Silicon Valley. Let's tech America like Silicon Valley. Basically the big vulnerability I think Basically the big vulnerability I think Basically the big vulnerability I think one way of thinking about the last few one way of thinking about the last few one way of thinking about the last few years. So I talked about the disruption years. So I talked about the disruption years. So I talked about the disruption outside from the internet in China, outside from the internet in China, outside from the internet in China, right? Let's let's say the internet is right? Let's let's say the internet is right? Let's let's say the internet is now there's a global internet because now there's a global internet because now there's a global internet because there's like Portuguese tech there's like Portuguese tech there's like Portuguese tech entrepreneurs and Singapore VCs and so entrepreneurs and Singapore VCs and so entrepreneurs and Singapore VCs and so on and so forth, right? There's Chinese on and so forth, right? There's Chinese on and so forth, right? There's Chinese open source models and there's open source models and there's open source models and there's cryptocurrency which is global and all cryptocurrency which is global and all cryptocurrency which is global and all this kind of stuff is global, right? I this kind of stuff is global, right? I this kind of stuff is global, right? I can show a graph which shows that um can show a graph which shows that um can show a graph which shows that um there's now 420 cities that have there's now 420 cities that have there's now 420 cities that have unicorns. unicorns. unicorns. Only one of those is Silicon Have you Only one of those is Silicon Have you Only one of those is Silicon Have you seen that one? seen that one? seen that one? >> I have. Yeah. >> I have. Yeah. >> I have. Yeah. >> Okay, fine. So, you can put that one on >> Okay, fine. So, you can put that one on >> Okay, fine. So, you can put that one on screen, right? So, 420 cities with screen, right? So, 420 cities with screen, right? So, 420 cities with unicorns, which means you don't have to unicorns, which means you don't have to unicorns, which means you don't have to be in Silicon Valley to build a unicorn. be in Silicon Valley to build a unicorn. be in Silicon Valley to build a unicorn. Okay. So, that means Silicon Valley is Okay. So, that means Silicon Valley is Okay. So, that means Silicon Valley is less essential. Okay. And Silicon Valley less essential. Okay. And Silicon Valley less essential. Okay. And Silicon Valley is actually under attack now. That's why is actually under attack now. That's why is actually under attack now. That's why basically, you know, the entire concept basically, you know, the entire concept basically, you know, the entire concept of disrupting all these blue jobs while of disrupting all these blue jobs while of disrupting all these blue jobs while being in the bluest city in the bluest being in the bluest city in the bluest being in the bluest city in the bluest state in the union, right? Being state in the union, right? Being state in the union, right? Being publicly a billionaire in San Francisco, publicly a billionaire in San Francisco, publicly a billionaire in San Francisco, having your face everywhere and talking having your face everywhere and talking having your face everywhere and talking about how they're taking all the about how they're taking all the about how they're taking all the Democrat jobs while in a a city and a Democrat jobs while in a a city and a Democrat jobs while in a a city and a state that's ruled by Democrats is the state that's ruled by Democrats is the state that's ruled by Democrats is the most strategically insane kind of thing. most strategically insane kind of thing. most strategically insane kind of thing. And as a consequence, I think uh like And as a consequence, I think uh like And as a consequence, I think uh like the wealth tax against the tech the wealth tax against the tech the wealth tax against the tech billionaires in California, the 5% billionaires in California, the 5% billionaires in California, the 5% wealth tax forced Zuck out, Larry Page wealth tax forced Zuck out, Larry Page wealth tax forced Zuck out, Larry Page out, uh Sergey Brin out. Um do you think out, uh Sergey Brin out. Um do you think out, uh Sergey Brin out. Um do you think California has a rude awakening coming California has a rude awakening coming California has a rude awakening coming where they've just hollowed out like a where they've just hollowed out like a where they've just hollowed out like a trillion dollars of their tax base or trillion dollars of their tax base or trillion dollars of their tax base or are they doing it are they doing it are they doing it >> to be punitive and believe that they can >> to be punitive and believe that they can >> to be punitive and believe that they can make up the shortfall through federal make up the shortfall through federal make up the shortfall through federal funds? Like I'm not sure what their funds? Like I'm not sure what their funds? Like I'm not sure what their logic is. ah there's a metal logic to logic is. ah there's a metal logic to logic is. ah there's a metal logic to the metaorganism. So metorganism another the metaorganism. So metorganism another the metaorganism. So metorganism another important concept I have um it's important concept I have um it's important concept I have um it's certainly not original to me but you certainly not original to me but you certainly not original to me but you know an ant colony any individual ant know an ant colony any individual ant know an ant colony any individual ant doesn't necessarily know what it's doing doesn't necessarily know what it's doing doesn't necessarily know what it's doing but the colony has an intelligence but the colony has an intelligence but the colony has an intelligence doesn't mean it's super intelligent it doesn't mean it's super intelligent it doesn't mean it's super intelligent it just means there's an emergent just means there's an emergent just means there's an emergent intelligence where you can talk about intelligence where you can talk about intelligence where you can talk about the colony's interests even if any the colony's interests even if any the colony's interests even if any individual ant is only kind of individual ant is only kind of individual ant is only kind of responding to local incentives right responding to local incentives right responding to local incentives right similarly a flock of seagulls or a similarly a flock of seagulls or a similarly a flock of seagulls or a school of fish right there's school of fish right there's school of fish right there's metaorganisms even in a sense you as a metaorganisms even in a sense you as a metaorganisms even in a sense you as a human being you have a collection of human being you have a collection of human being you have a collection of cells and your epithelial cells don't cells and your epithelial cells don't cells and your epithelial cells don't necessarily know what's going on, but necessarily know what's going on, but necessarily know what's going on, but they obey your orders in a sense, right? they obey your orders in a sense, right? they obey your orders in a sense, right? If we model Democrats, California If we model Democrats, California If we model Democrats, California Democrats as a metaorganism, Republicans Democrats as a metaorganism, Republicans Democrats as a metaorganism, Republicans as a metaorganism, right? There's a as a metaorganism, right? There's a as a metaorganism, right? There's a bunch of individual sensors and they're bunch of individual sensors and they're bunch of individual sensors and they're not super intelligent, but this way you not super intelligent, but this way you not super intelligent, but this way you can say dem blue wants this, red wants can say dem blue wants this, red wants can say dem blue wants this, red wants this, okay? Like at an abstracted level this, okay? Like at an abstracted level this, okay? Like at an abstracted level over millions of people, over millions of people, over millions of people, California Democrats, California Democrats, California Democrats, basically the wealth tax is for them a basically the wealth tax is for them a basically the wealth tax is for them a win-win. Why? They either deport or rob win-win. Why? They either deport or rob win-win. Why? They either deport or rob their main competitors for political their main competitors for political their main competitors for political power within California who are the tech power within California who are the tech power within California who are the tech guys. guys. guys. >> That's [ __ ] dark, >> That's [ __ ] dark, >> That's [ __ ] dark, >> right? This is the same as the >> right? This is the same as the >> right? This is the same as the communists, right? The communists like communists, right? The communists like communists, right? The communists like they would take control of Cuba and all they would take control of Cuba and all they would take control of Cuba and all the capitalists, they either rob them or the capitalists, they either rob them or the capitalists, they either rob them or they'd force them out at gunpoint, be they'd force them out at gunpoint, be they'd force them out at gunpoint, be exiles in Miami. exiles in Miami. exiles in Miami. And there's a meta rationality to this, And there's a meta rationality to this, And there's a meta rationality to this, which is the kind of person who's a which is the kind of person who's a which is the kind of person who's a communist or a California Democrat communist or a California Democrat communist or a California Democrat is somebody who's not good at winning in is somebody who's not good at winning in is somebody who's not good at winning in the market. They're not good with the market. They're not good with the market. They're not good with numbers. They're not good with building numbers. They're not good with building numbers. They're not good with building businesses. What they are good at is businesses. What they are good at is businesses. What they are good at is coalitional politics. coalitional politics. coalitional politics. They actually have a real, for lack of a They actually have a real, for lack of a They actually have a real, for lack of a better term, talent for that. Right? So better term, talent for that. Right? So better term, talent for that. Right? So from somebody who has that talent and from somebody who has that talent and from somebody who has that talent and they can't build a business, they can't they can't build a business, they can't they can't build a business, they can't build wealth or what have you, what they build wealth or what have you, what they build wealth or what have you, what they can do is they can focus 100% of their can do is they can focus 100% of their can do is they can focus 100% of their energy on controlling the law and the energy on controlling the law and the energy on controlling the law and the state and the tech guy can't do that. state and the tech guy can't do that. state and the tech guy can't do that. And so they go upstream and they And so they go upstream and they And so they go upstream and they basically win the high ground and they basically win the high ground and they basically win the high ground and they drive out their enemies or rob them. drive out their enemies or rob them. drive out their enemies or rob them. Okay? And every techillionaire who Okay? And every techillionaire who Okay? And every techillionaire who leaves California basically cements leaves California basically cements leaves California basically cements Democrat political power because at a at Democrat political power because at a at Democrat political power because at a at a deep sense and this is a really a deep sense and this is a really a deep sense and this is a really important another important concept. important another important concept. important another important concept. Democrats destroyed democracy in Democrats destroyed democracy in Democrats destroyed democracy in California and the reason is California California and the reason is California California and the reason is California is a one party state. Let me show you is a one party state. Let me show you is a one party state. Let me show you this. Okay. Do you see that? this. Okay. Do you see that? this. Okay. Do you see that? >> Yep. >> Yep. >> Yep. >> Yeah. Democrats destroyed democracy. >> Yeah. Democrats destroyed democracy. >> Yeah. Democrats destroyed democracy. >> That's wild. >> That's wild. >> That's wild. >> Okay. California is a one party state >> Okay. California is a one party state >> Okay. California is a one party state where elections are held but the party where elections are held but the party where elections are held but the party always wins. >> That is crazy. For anybody not looking >> That is crazy. For anybody not looking at this, it shows that every year from at this, it shows that every year from at this, it shows that every year from 2011 to well, I guess technically that's 2011 to well, I guess technically that's 2011 to well, I guess technically that's what we see. It's 92 to 2024 governor what we see. It's 92 to 2024 governor what we see. It's 92 to 2024 governor state. state. state. >> Go ahead. So it's let's say 2011 to 2025 >> Go ahead. So it's let's say 2011 to 2025 >> Go ahead. So it's let's say 2011 to 2025 it's just pure Democrats and the new it's just pure Democrats and the new it's just pure Democrats and the new gerrymandering bill is going to mean gerrymandering bill is going to mean gerrymandering bill is going to mean permanent Democrat rule forever. permanent Democrat rule forever. permanent Democrat rule forever. >> Jesus. >> Jesus. >> Jesus. >> Okay. Schwarzenegger was like the last >> Okay. Schwarzenegger was like the last >> Okay. Schwarzenegger was like the last Republican or so Republican or so Republican or so >> what year was he? Oh, so he ended in >> what year was he? Oh, so he ended in >> what year was he? Oh, so he ended in 2011. 2011. 2011. >> Yeah. Yeah. Okay. That's right. That's >> Yeah. Yeah. Okay. That's right. That's >> Yeah. Yeah. Okay. That's right. That's right. right. right. >> So >> So >> So >> he was the last one. So 2010 was the >> he was the last one. So 2010 was the >> he was the last one. So 2010 was the last time that we had Wow. last time that we had Wow. last time that we had Wow. >> That's right. And so then going a little >> That's right. And so then going a little >> That's right. And so then going a little further, basically it was right around further, basically it was right around further, basically it was right around then that California started topping out then that California started topping out then that California started topping out and basically one party democracy and basically one party democracy and basically one party democracy um is why you can have graphs like this. um is why you can have graphs like this. um is why you can have graphs like this. Do you see this graph which shows the Do you see this graph which shows the Do you see this graph which shows the department of homelessness budget? department of homelessness budget? department of homelessness budget? >> Jesus. Yeah. >> Jesus. Yeah. >> Jesus. Yeah. >> So this is a thing like lots of people >> So this is a thing like lots of people >> So this is a thing like lots of people who are like oh you need to stay and who are like oh you need to stay and who are like oh you need to stay and fight we need to fix California and so fight we need to fix California and so fight we need to fix California and so on. The thing they don't understand on. The thing they don't understand on. The thing they don't understand is that for Democrats the state is their is that for Democrats the state is their is that for Democrats the state is their startup. startup. startup. the per like so here's a specific the per like so here's a specific the per like so here's a specific example example example the purpose of the San Francisco the purpose of the San Francisco the purpose of the San Francisco government for Democrats is to award government for Democrats is to award government for Democrats is to award hundreds of millions in this case more hundreds of millions in this case more hundreds of millions in this case more than a billion dollars per year to quote than a billion dollars per year to quote than a billion dollars per year to quote homeless NOS's that hand out the homeless NOS's that hand out the homeless NOS's that hand out the syringes and set up the safe injection syringes and set up the safe injection syringes and set up the safe injection sites so to speak to get people addicted sites so to speak to get people addicted sites so to speak to get people addicted to drugs to increase the homeless to drugs to increase the homeless to drugs to increase the homeless population and thereby increase the population and thereby increase the population and thereby increase the justification for their existence justification for their existence justification for their existence whether they conceptualize it that way whether they conceptualize it that way whether they conceptualize it that way or not, they'll they'll say they mean to or not, they'll they'll say they mean to or not, they'll they'll say they mean to do good, but they really mean to do well do good, but they really mean to do well do good, but they really mean to do well for themselves because what they're for themselves because what they're for themselves because what they're optimizing is the NGO budget. This is a optimizing is the NGO budget. This is a optimizing is the NGO budget. This is a really important mechanism and I I don't really important mechanism and I I don't really important mechanism and I I don't want to lose people uh from a political want to lose people uh from a political want to lose people uh from a political angle. So taking that out to the angle. So taking that out to the angle. So taking that out to the mechanism that recurs in the human mind mechanism that recurs in the human mind mechanism that recurs in the human mind is every human every organism when when is every human every organism when when is every human every organism when when we get together is going to try to grow we get together is going to try to grow we get together is going to try to grow and when humans get together to build and when humans get together to build and when humans get together to build something whether it is a local something whether it is a local something whether it is a local government whether it's a company uh government whether it's a company uh government whether it's a company uh they are going to they have an incentive they are going to they have an incentive they are going to they have an incentive structure both inside their own mind and structure both inside their own mind and structure both inside their own mind and just at the ground level of getting just at the ground level of getting just at the ground level of getting resources to survive uh to make it resources to survive uh to make it resources to survive uh to make it bigger to grow to acquire more bigger to grow to acquire more bigger to grow to acquire more resources. And so if your um resources. And so if your um resources. And so if your um homelessness project requires homeless homelessness project requires homeless homelessness project requires homeless people, then the thing that you have to people, then the thing that you have to people, then the thing that you have to acquire more of in order to grow is acquire more of in order to grow is acquire more of in order to grow is homeless people. That is really homeless people. That is really homeless people. That is really fascinating. It it goes to show at an fascinating. It it goes to show at an fascinating. It it goes to show at an incentive level how high risk this kind incentive level how high risk this kind incentive level how high risk this kind of thing is. of thing is. of thing is. >> Exactly. And so the Republican version >> Exactly. And so the Republican version >> Exactly. And so the Republican version of this is like the military-industrial of this is like the military-industrial of this is like the military-industrial complex. complex. complex. >> Yeah. >> Yeah. >> Yeah. >> Well said. Well said. >> Well said. Well said. >> Well said. Well said. >> Okay. So that is the piece of it for >> Okay. So that is the piece of it for >> Okay. So that is the piece of it for which uh you know the state is their which uh you know the state is their which uh you know the state is their startup startup startup and so in both cases it's smaller than and so in both cases it's smaller than and so in both cases it's smaller than the other piece but it's still trillion the other piece but it's still trillion the other piece but it's still trillion dollars or what have you right and so dollars or what have you right and so dollars or what have you right and so when you when you see this you you when you when you see this you you when you when you see this you you realize okay those people who for whom realize okay those people who for whom realize okay those people who for whom the state is their startup like it is the state is their startup like it is the state is their startup like it is their full-time job their full-time job their full-time job to gain power so they can gain the money to gain power so they can gain the money to gain power so they can gain the money like basically their NGO budget or their like basically their NGO budget or their like basically their NGO budget or their military-industrial complex budget to a military-industrial complex budget to a military-industrial complex budget to a lesser extent but certainly let's say lesser extent but certainly let's say lesser extent but certainly let's say the NGO budget uh the grant or something the NGO budget uh the grant or something the NGO budget uh the grant or something like that they are somebody had a like that they are somebody had a like that they are somebody had a there's a good phrase on X on this their there's a good phrase on X on this their there's a good phrase on X on this their net long taxation taxation on balance is good for them taxation on balance is good for them because they might lose 10,000 bucks a because they might lose 10,000 bucks a because they might lose 10,000 bucks a year or whatever as uh for their year or whatever as uh for their year or whatever as uh for their bureaucrat salary but they gain $20 bureaucrat salary but they gain $20 bureaucrat salary but they gain $20 billion a year to be able to throw billion a year to be able to throw billion a year to be able to throw around and allocate because there's more around and allocate because there's more around and allocate because there's more that is being controlled by the central that is being controlled by the central that is being controlled by the central government, right? So, and when you government, right? So, and when you government, right? So, and when you actually tote up how many people are actually tote up how many people are actually tote up how many people are downstream of the state in one way or downstream of the state in one way or downstream of the state in one way or the other, you have like 40 million the other, you have like 40 million the other, you have like 40 million people on SNAP, you have all the people on SNAP, you have all the people on SNAP, you have all the academic grants, you have all the NOS, academic grants, you have all the NOS, academic grants, you have all the NOS, you have all the bureaucrat positions. you have all the bureaucrat positions. you have all the bureaucrat positions. It's much larger than the federal It's much larger than the federal It's much larger than the federal government per se. It's all the flows of government per se. It's all the flows of government per se. It's all the flows of money that go out to things that are money that go out to things that are money that go out to things that are directly or indirectly government, directly or indirectly government, directly or indirectly government, state, local, federal funded. Okay? state, local, federal funded. Okay? state, local, federal funded. Okay? Because of that, anybody for whom the Because of that, anybody for whom the Because of that, anybody for whom the state is their startup, you're not going state is their startup, you're not going state is their startup, you're not going to beat them or or rather it's a miracle to beat them or or rather it's a miracle to beat them or or rather it's a miracle if you ever do beat them because it's if you ever do beat them because it's if you ever do beat them because it's their full-time job and it's like your their full-time job and it's like your their full-time job and it's like your part-time job. So, the California tech part-time job. So, the California tech part-time job. So, the California tech guys cannot win against the people who guys cannot win against the people who guys cannot win against the people who the state is their startup. Right now, the state is their startup. Right now, the state is their startup. Right now, in response to by the way, California in response to by the way, California in response to by the way, California Democrats creating a one party state in Democrats creating a one party state in Democrats creating a one party state in California, Republicans are trying to do California, Republicans are trying to do California, Republicans are trying to do the same thing in Florida and Texas. the same thing in Florida and Texas. the same thing in Florida and Texas. And of course, China's also a one party And of course, China's also a one party And of course, China's also a one party state. state. state. So democracy is ending within states. So democracy is ending within states. So democracy is ending within states. The gerrymandering and so on is also The gerrymandering and so on is also The gerrymandering and so on is also meaning that there's there's response meaning that there's there's response meaning that there's there's response gerrymandering in uh in Republican gerrymandering in uh in Republican gerrymandering in uh in Republican states as well. Right? Virginia's states as well. Right? Virginia's states as well. Right? Virginia's gerrymandering for Democrats. gerrymandering for Democrats. gerrymandering for Democrats. California's jerry for Democrats. California's jerry for Democrats. California's jerry for Democrats. Florida and Texas are trying to do this Florida and Texas are trying to do this Florida and Texas are trying to do this for Republicans, right? So essentially for Republicans, right? So essentially for Republicans, right? So essentially you get an equilibrium where uh you have you get an equilibrium where uh you have you get an equilibrium where uh you have all of these one party states where all of these one party states where all of these one party states where elections are held but the party always elections are held but the party always elections are held but the party always wins. And so that means democracy is wins. And so that means democracy is wins. And so that means democracy is actually going to be between states actually going to be between states actually going to be between states rather than within them. rather than within them. rather than within them. >> You have to vote with your feet. You >> You have to vote with your feet. You >> You have to vote with your feet. You have to move between states. That's the have to move between states. That's the have to move between states. That's the only practical choice you have. Right? only practical choice you have. Right? only practical choice you have. Right? >> So the internet becomes the guardian of >> So the internet becomes the guardian of >> So the internet becomes the guardian of true democracy because people vote with true democracy because people vote with true democracy because people vote with their feet with their wallet and their their feet with their wallet and their their feet with their wallet and their ballot. That's actually how you have a ballot. That's actually how you have a ballot. That's actually how you have a choice of the government that under choice of the government that under choice of the government that under which you live. Okay? It's a it's a more which you live. Okay? It's a it's a more which you live. Okay? It's a it's a more expensive vote in a sense, but we can expensive vote in a sense, but we can expensive vote in a sense, but we can reduce the barrier to exit. We can reduce the barrier to exit. We can reduce the barrier to exit. We can reduce the cost of migration and so on reduce the cost of migration and so on reduce the cost of migration and so on with the internet. Okay? It's coming with the internet. Okay? It's coming with the internet. Okay? It's coming back up. back up. back up. Once we understand these dynamics, the Once we understand these dynamics, the Once we understand these dynamics, the uh the issue is that uh the issue is that uh the issue is that all of the debt is causing because the all of the debt is causing because the all of the debt is causing because the thing is Democrats were actually much thing is Democrats were actually much thing is Democrats were actually much more reasonable in the '9s and the 2000s more reasonable in the '9s and the 2000s more reasonable in the '9s and the 2000s and so are Republicans because they and so are Republicans because they and so are Republicans because they weren't under the same financial stress. weren't under the same financial stress. weren't under the same financial stress. >> Mhm. >> Mhm. >> Mhm. >> Their pie has shrunk. Like people feel >> Their pie has shrunk. Like people feel >> Their pie has shrunk. Like people feel that, right? The pie has shrunk. They that, right? The pie has shrunk. They that, right? The pie has shrunk. They have to work harder for less. the the have to work harder for less. the the have to work harder for less. the the dollars declined in value because dollars declined in value because dollars declined in value because basically uh you know it's hard to go up basically uh you know it's hard to go up basically uh you know it's hard to go up from where America was in the '90s. It's from where America was in the '90s. It's from where America was in the '90s. It's the most dominant empire of all time. the most dominant empire of all time. the most dominant empire of all time. Many people thought that America would Many people thought that America would Many people thought that America would then be able to essentially run both then be able to essentially run both then be able to essentially run both Russia and China. And in fact in the Russia and China. And in fact in the Russia and China. And in fact in the '90s Yeltson and so on like Americans '90s Yeltson and so on like Americans '90s Yeltson and so on like Americans could do business and you know Russia could do business and you know Russia could do business and you know Russia was actually part of the so-called G8 up was actually part of the so-called G8 up was actually part of the so-called G8 up until the 2000s right and then they got until the 2000s right and then they got until the 2000s right and then they got kicked out. So, but Russia was a place kicked out. So, but Russia was a place kicked out. So, but Russia was a place where Americans could do business and where Americans could do business and where Americans could do business and certainly many in China sent their certainly many in China sent their certainly many in China sent their children to American schools and children to American schools and children to American schools and Americans could do business there as Americans could do business there as Americans could do business there as well. So, there's an expectation in the well. So, there's an expectation in the well. So, there's an expectation in the 90s and the 2000s that you know it was 90s and the 2000s that you know it was 90s and the 2000s that you know it was the end of history. I know Fukyam is uh the end of history. I know Fukyam is uh the end of history. I know Fukyam is uh had has a more sophisticated thesis than had has a more sophisticated thesis than had has a more sophisticated thesis than that, but that's part of his thesis that, but that's part of his thesis that, but that's part of his thesis right that basically you know liberal right that basically you know liberal right that basically you know liberal democracy capitalism had become democracy capitalism had become democracy capitalism had become dominant. So there's an expectation that dominant. So there's an expectation that dominant. So there's an expectation that you could graduate from college and you could graduate from college and you could graduate from college and while it wasn't articulated as such at a while it wasn't articulated as such at a while it wasn't articulated as such at a metaorganism level you could administer metaorganism level you could administer metaorganism level you could administer a province like Siberia or Shanghai just a province like Siberia or Shanghai just a province like Siberia or Shanghai just like you could South Dakota. Right? like you could South Dakota. Right? like you could South Dakota. Right? Essentially the American Empire would Essentially the American Empire would Essentially the American Empire would run the world and you'd have expansion run the world and you'd have expansion run the world and you'd have expansion territories to go into. the fact that territories to go into. the fact that territories to go into. the fact that that didn't happen and the fact that that didn't happen and the fact that that didn't happen and the fact that Putin and G and others rose and so those Putin and G and others rose and so those Putin and G and others rose and so those territories got closed off to Americans territories got closed off to Americans territories got closed off to Americans abroad and that the internet arose abroad and that the internet arose abroad and that the internet arose domestically and started you know domestically and started you know domestically and started you know disrupting opportunities at home meant disrupting opportunities at home meant disrupting opportunities at home meant that the Democrats Republicans are that the Democrats Republicans are that the Democrats Republicans are getting squeezed from both sides. getting squeezed from both sides. getting squeezed from both sides. That's like another to be clear this is That's like another to be clear this is That's like another to be clear this is complimentary to the whole debt thing complimentary to the whole debt thing complimentary to the whole debt thing but it's just another way of thinking but it's just another way of thinking but it's just another way of thinking about what the last 20 30 years were about what the last 20 30 years were about what the last 20 30 years were and so the uh what what happens is and so the uh what what happens is and so the uh what what happens is you know in 2008 China and the internet you know in 2008 China and the internet you know in 2008 China and the internet weren't ready to take over they were weren't ready to take over they were weren't ready to take over they were still into it but the financial stress still into it but the financial stress still into it but the financial stress and that's why people fled into the and that's why people fled into the and that's why people fled into the dollar at that time you know you've dollar at that time you know you've dollar at that time you know you've heard the term the the cleanest dirty heard the term the the cleanest dirty heard the term the the cleanest dirty shirt. shirt. shirt. >> Yep. >> Yep. >> Yep. >> Right. like for all the faults of the US >> Right. like for all the faults of the US >> Right. like for all the faults of the US at that time it was still where else you at that time it was still where else you at that time it was still where else you going to go right so people flooded into going to go right so people flooded into going to go right so people flooded into the dollar and with that financial the dollar and with that financial the dollar and with that financial crisis basically uh they're able to crisis basically uh they're able to crisis basically uh they're able to print and kind of keep the system going print and kind of keep the system going print and kind of keep the system going because who is ready to take it over one because who is ready to take it over one because who is ready to take it over one way of thinking about it is when a human way of thinking about it is when a human way of thinking about it is when a human dies they can die without an error but dies they can die without an error but dies they can die without an error but when a system dies it has to have an when a system dies it has to have an when a system dies it has to have an obvious error otherwise it can't die obvious error otherwise it can't die obvious error otherwise it can't die because it'll just continue in a zombie because it'll just continue in a zombie because it'll just continue in a zombie state and so the last 18 years have kind state and so the last 18 years have kind state and so the last 18 years have kind of been zombie America. Like that graph of been zombie America. Like that graph of been zombie America. Like that graph that shows the Magnificent 7 versus S&P that shows the Magnificent 7 versus S&P that shows the Magnificent 7 versus S&P 493, 493, 493, you know, you know how General Motors you know, you know how General Motors you know, you know how General Motors got a bailout in in 2008, right? And the got a bailout in in 2008, right? And the got a bailout in in 2008, right? And the banks got a bailout, right? Those are banks got a bailout, right? Those are banks got a bailout, right? Those are companies that like should have died companies that like should have died companies that like should have died and they basically are essentially and they basically are essentially and they basically are essentially though it's not called this, they were though it's not called this, they were though it's not called this, they were nationalized at that time nationalized at that time nationalized at that time because the government bought stakes in because the government bought stakes in because the government bought stakes in them, right? In fact, the government them, right? In fact, the government them, right? In fact, the government nationalized much of American property nationalized much of American property nationalized much of American property because all of the and this is going to because all of the and this is going to because all of the and this is going to be an argument that you're probably be an argument that you're probably be an argument that you're probably going to see in the next whatever number going to see in the next whatever number going to see in the next whatever number of years. The government owns your of years. The government owns your of years. The government owns your house. Why? Because the Fed bought house. Why? Because the Fed bought house. Why? Because the Fed bought mortgage back securities. Therefore, mortgage back securities. Therefore, mortgage back securities. Therefore, like you should be grateful to them and like you should be grateful to them and like you should be grateful to them and so on and so forth. Okay? So much of the so on and so forth. Okay? So much of the so on and so forth. Okay? So much of the economy was de facto nationalized at economy was de facto nationalized at economy was de facto nationalized at that time with the purchase of mortgage that time with the purchase of mortgage that time with the purchase of mortgage back securities, the bailouts of the back securities, the bailouts of the back securities, the bailouts of the banks, um the the bailout General banks, um the the bailout General banks, um the the bailout General Motors, the American Investment Recovery Motors, the American Investment Recovery Motors, the American Investment Recovery Act and so on and so forth. All this was Act and so on and so forth. All this was Act and so on and so forth. All this was using that money printing power to using that money printing power to using that money printing power to basically tax the whole world to bail basically tax the whole world to bail basically tax the whole world to bail out America. And that's why Britain, for out America. And that's why Britain, for out America. And that's why Britain, for example, their growth just stopped in example, their growth just stopped in example, their growth just stopped in 2008. 2008. 2008. And if you seen that graph that shows And if you seen that graph that shows And if you seen that graph that shows like Britain's GDP growth, it just like like Britain's GDP growth, it just like like Britain's GDP growth, it just like stopped then stopped then stopped then >> because they're remember the Cantalin >> because they're remember the Cantalin >> because they're remember the Cantalin effect, the Brits are further from the effect, the Brits are further from the effect, the Brits are further from the money printer than Americans are. And so money printer than Americans are. And so money printer than Americans are. And so the only two districts that did well in the only two districts that did well in the only two districts that did well in America after the financial crisis were America after the financial crisis were America after the financial crisis were basically the broad DC area, which got a basically the broad DC area, which got a basically the broad DC area, which got a lot of the bailout money and and the lot of the bailout money and and the lot of the bailout money and and the banks and so on, and Silicon Valley, banks and so on, and Silicon Valley, banks and so on, and Silicon Valley, which could do a lot with the little, which could do a lot with the little, which could do a lot with the little, like just a guy on a laptop. one tiny like just a guy on a laptop. one tiny like just a guy on a laptop. one tiny rivlet of all the printed money made its rivlet of all the printed money made its rivlet of all the printed money made its way down into because interest rates way down into because interest rates way down into because interest rates have gone all the way down people for have gone all the way down people for have gone all the way down people for any return they to take high risk they any return they to take high risk they any return they to take high risk they take much higher risk than they needed take much higher risk than they needed take much higher risk than they needed to do during the post-war era right and to do during the post-war era right and to do during the post-war era right and so they started to finally invest in so they started to finally invest in so they started to finally invest in risky things again like they did in the risky things again like they did in the risky things again like they did in the 1800s and a tiny tiny sliver like a few 1800s and a tiny tiny sliver like a few 1800s and a tiny tiny sliver like a few billion dollars out of a few trillion billion dollars out of a few trillion billion dollars out of a few trillion made its way to Silicon Valley tech made its way to Silicon Valley tech made its way to Silicon Valley tech startups and it funded Zuck and Elon and startups and it funded Zuck and Elon and startups and it funded Zuck and Elon and so on and so forth and that's another so on and so forth and that's another so on and so forth and that's another big piece of this is the internet was big piece of this is the internet was big piece of this is the internet was ready for that at that time. So a ready for that at that time. So a ready for that at that time. So a relatively small amount of capital in relatively small amount of capital in relatively small amount of capital in Miracle Grow this system started getting Miracle Grow this system started getting Miracle Grow this system started getting stood up and the same thing was stood up and the same thing was stood up and the same thing was happening abroad in China where they happening abroad in China where they happening abroad in China where they were also willing to do more with less, were also willing to do more with less, were also willing to do more with less, right? They're willing to Have you ever right? They're willing to Have you ever right? They're willing to Have you ever seen a Chinese factory seen a Chinese factory seen a Chinese factory >> online and stuff? Yes. Not in person. >> online and stuff? Yes. Not in person. >> online and stuff? Yes. Not in person. >> Okay. So like they have dormitories >> Okay. So like they have dormitories >> Okay. So like they have dormitories there, right? They sleep at the factory. there, right? They sleep at the factory. there, right? They sleep at the factory. They basically will, you know, they'll They basically will, you know, they'll They basically will, you know, they'll go back for like Chinese New Year, you go back for like Chinese New Year, you go back for like Chinese New Year, you know, there's this big migration. They know, there's this big migration. They know, there's this big migration. They they go and see their kids, wife, they go and see their kids, wife, they go and see their kids, wife, whatever once year and they come back whatever once year and they come back whatever once year and they come back and they grind in the factory, right? and they grind in the factory, right? and they grind in the factory, right? And because it was such a huge And because it was such a huge And because it was such a huge improvement over the rice patty improvement over the rice patty improvement over the rice patty of communism, like they were just happy of communism, like they were just happy of communism, like they were just happy to have four meals in a cot that this to have four meals in a cot that this to have four meals in a cot that this was amazing for them. It was a huge was amazing for them. It was a huge was amazing for them. It was a huge level up over the poverty they had. level up over the poverty they had. level up over the poverty they had. >> Anybody that remembered Mao would have >> Anybody that remembered Mao would have >> Anybody that remembered Mao would have been ecstatic. been ecstatic. been ecstatic. >> Yes, that's right. So for them, this was >> Yes, that's right. So for them, this was >> Yes, that's right. So for them, this was a huge level up. They were happy to have a huge level up. They were happy to have a huge level up. They were happy to have it relative to what they had, right? So it relative to what they had, right? So it relative to what they had, right? So they weren't feeling oppressed or they weren't feeling oppressed or they weren't feeling oppressed or whatever, right? I'm not saying you I'm whatever, right? I'm not saying you I'm whatever, right? I'm not saying you I'm not totally uh romanticizing it or not totally uh romanticizing it or not totally uh romanticizing it or anything like that, but basically anything like that, but basically anything like that, but basically something that would have been something that would have been something that would have been considered a huge level down from work considered a huge level down from work considered a huge level down from work conditions for many Americans was a huge conditions for many Americans was a huge conditions for many Americans was a huge level up for many Chinese, level up for many Chinese, level up for many Chinese, >> right? >> right? >> right? >> So they were also the equivalent of the >> So they were also the equivalent of the >> So they were also the equivalent of the guy on a laptop, guy on a laptop, guy on a laptop, >> you know, who didn't need much in the >> you know, who didn't need much in the >> you know, who didn't need much in the way of resources turning doing a lot way of resources turning doing a lot way of resources turning doing a lot with a little. They were willing to do a with a little. They were willing to do a with a little. They were willing to do a lot with little in China and places like lot with little in China and places like lot with little in China and places like that. Okay. that. Okay. that. Okay. So, those two deflationary forces So, those two deflationary forces So, those two deflationary forces basically are kind of what you know basically are kind of what you know basically are kind of what you know there's a graph that shows what increase there's a graph that shows what increase there's a graph that shows what increase in price and what decrease in price. in price and what decrease in price. in price and what decrease in price. Have you seen that one? Have you seen that one? Have you seen that one? >> Uh over what time period? >> Uh over what time period? >> Uh over what time period? >> Like the last few decades. Let me see if >> Like the last few decades. Let me see if >> Like the last few decades. Let me see if I can find it. I can find it. I can find it. >> No, I've not looked at anything specific >> No, I've not looked at anything specific >> No, I've not looked at anything specific there. But it's an interesting point there. But it's an interesting point there. But it's an interesting point that you're making that we have these that you're making that we have these that you're making that we have these two parallel things, China and Silicon two parallel things, China and Silicon two parallel things, China and Silicon Valley both being able to thrive in this Valley both being able to thrive in this Valley both being able to thrive in this otherwise um depressed state. And so otherwise um depressed state. And so otherwise um depressed state. And so they end up sort of overshooting the they end up sort of overshooting the they end up sort of overshooting the mark and both of them uh coming up mark and both of them uh coming up mark and both of them uh coming up together. That's really interesting. together. That's really interesting. together. That's really interesting. Now, I take a slightly different lens on Now, I take a slightly different lens on Now, I take a slightly different lens on why China did as well as it did, but why China did as well as it did, but why China did as well as it did, but some of the things you're putting on the some of the things you're putting on the some of the things you're putting on the table are, I think, incredibly table are, I think, incredibly table are, I think, incredibly interesting and round out my more like interesting and round out my more like interesting and round out my more like going into the WTO. Um, outsourcing jobs going into the WTO. Um, outsourcing jobs going into the WTO. Um, outsourcing jobs to those guys just full stop sending to those guys just full stop sending to those guys just full stop sending over Apple and sending over our best VC over Apple and sending over our best VC over Apple and sending over our best VC people to teach them manufacturing, to people to teach them manufacturing, to people to teach them manufacturing, to teach them how the VC model worked, all teach them how the VC model worked, all teach them how the VC model worked, all of that. Um, you know, but this is a of that. Um, you know, but this is a of that. Um, you know, but this is a really interesting element of the puzzle really interesting element of the puzzle really interesting element of the puzzle that I had not thought about before. that I had not thought about before. that I had not thought about before. >> Yeah. And by the way, the thing is I >> Yeah. And by the way, the thing is I >> Yeah. And by the way, the thing is I would agree with everything, you know, would agree with everything, you know, would agree with everything, you know, it is it's one of these things where it is it's one of these things where it is it's one of these things where China's complicated. I mean, just like China's complicated. I mean, just like China's complicated. I mean, just like America's complicated where a lot of the America's complicated where a lot of the America's complicated where a lot of the negative stuff and the positive stuff is negative stuff and the positive stuff is negative stuff and the positive stuff is true. Like, did they copy all types of true. Like, did they copy all types of true. Like, did they copy all types of stuff? Yes. Did they violate all kinds stuff? Yes. Did they violate all kinds stuff? Yes. Did they violate all kinds of IP? Absolutely. Do they have of IP? Absolutely. Do they have of IP? Absolutely. Do they have elections in the sense Americans had elections in the sense Americans had elections in the sense Americans had them? No. Do they like do they have a them? No. Do they like do they have a them? No. Do they like do they have a surveillance? Absolutely. All this stuff surveillance? Absolutely. All this stuff surveillance? Absolutely. All this stuff is true, right? Um but they also execute is true, right? Um but they also execute is true, right? Um but they also execute like it's this weird thing where do they like it's this weird thing where do they like it's this weird thing where do they have for example lowquality plastic have for example lowquality plastic have for example lowquality plastic stuff and you know absolutely true on stuff and you know absolutely true on stuff and you know absolutely true on their hand are your phones are the their hand are your phones are the their hand are your phones are the pieces of them made in China? They they pieces of them made in China? They they pieces of them made in China? They they are right. are right. are right. >> Yeah. Tim Cook talked about that. He >> Yeah. Tim Cook talked about that. He >> Yeah. Tim Cook talked about that. He said listen I don't know who keeps said listen I don't know who keeps said listen I don't know who keeps saying that you go to China for low saying that you go to China for low saying that you go to China for low quality manufacturing. He's like, "These quality manufacturing. He's like, "These quality manufacturing. He's like, "These are the like highest, most high-tech are the like highest, most high-tech are the like highest, most high-tech engineers that you're going to find engineers that you're going to find engineers that you're going to find anywhere." Now, the part he left out is anywhere." Now, the part he left out is anywhere." Now, the part he left out is that he's one of the people that taught that he's one of the people that taught that he's one of the people that taught them how to do it, but nonetheless, them how to do it, but nonetheless, them how to do it, but nonetheless, uh, they really have accomplished uh, they really have accomplished uh, they really have accomplished something extraordinary. They are a very something extraordinary. They are a very something extraordinary. They are a very complex picture. Um, give us the complex picture. Um, give us the complex picture. Um, give us the punchline of what we're looking at here, punchline of what we're looking at here, punchline of what we're looking at here, and then I want to ask you about what and then I want to ask you about what and then I want to ask you about what you think the US's strategy is. Like, I you think the US's strategy is. Like, I you think the US's strategy is. Like, I get you are like, "Look, America has get you are like, "Look, America has get you are like, "Look, America has already died. I don't even know what already died. I don't even know what already died. I don't even know what we're talking about here." But America we're talking about here." But America we're talking about here." But America is trying to outperform China at least is trying to outperform China at least is trying to outperform China at least in our own hemisphere. We're at war in our own hemisphere. We're at war in our own hemisphere. We're at war right now with Iran. So I'm very curious right now with Iran. So I'm very curious right now with Iran. So I'm very curious once you show us this what you think of once you show us this what you think of once you show us this what you think of um um um >> what should do next. Yes. Okay. >> what should do next. Yes. Okay. >> what should do next. Yes. Okay. >> Or what what we are doing. Is it working >> Or what what we are doing. Is it working >> Or what what we are doing. Is it working or should we be doing something or should we be doing something or should we be doing something different? different? different? >> Okay. So so let me first show this graph >> Okay. So so let me first show this graph >> Okay. So so let me first show this graph then let's talk about that. Okay. So then let's talk about that. Okay. So then let's talk about that. Okay. So first this graph shows inflation and first this graph shows inflation and first this graph shows inflation and deflation. And the crucial thing is it's deflation. And the crucial thing is it's deflation. And the crucial thing is it's a vector not a scaler. That is to say, a vector not a scaler. That is to say, a vector not a scaler. That is to say, you have to it's not just like one you have to it's not just like one you have to it's not just like one number that you quote for inflation. number that you quote for inflation. number that you quote for inflation. You're like up 40% in college tuition, You're like up 40% in college tuition, You're like up 40% in college tuition, but you're down like more than 100% on but you're down like more than 100% on but you're down like more than 100% on televisions, right? televisions, right? televisions, right? >> And basically, if you look at this, >> And basically, if you look at this, >> And basically, if you look at this, everything that China andor the internet everything that China andor the internet everything that China andor the internet touch has come radically down in cost. touch has come radically down in cost. touch has come radically down in cost. televisions, personal computers, phones, televisions, personal computers, phones, televisions, personal computers, phones, toys, cell phone, clothing, all the toys, cell phone, clothing, all the toys, cell phone, clothing, all the stuff is either made in China or on the stuff is either made in China or on the stuff is either made in China or on the internet or both, internet or both, internet or both, right? This is really, really insightful right? This is really, really insightful right? This is really, really insightful and something that is falling through and something that is falling through and something that is falling through the cracks in the public narrative about the cracks in the public narrative about the cracks in the public narrative about what's going on. It's very damning I what's going on. It's very damning I what's going on. It's very damning I would say to see the things that China would say to see the things that China would say to see the things that China has touched have gone down and then all has touched have gone down and then all has touched have gone down and then all the bureaucratic nightmares that we've the bureaucratic nightmares that we've the bureaucratic nightmares that we've created on our side are driving costs created on our side are driving costs created on our side are driving costs up. That's why up. That's why up. That's why >> Exactly. That's right. So the things >> Exactly. That's right. So the things >> Exactly. That's right. So the things that are going up are all the things the that are going up are all the things the that are going up are all the things the American state is touching which are American state is touching which are American state is touching which are >> man, >> man, >> man, >> right? Education, healthcare, right? >> right? Education, healthcare, right? >> right? Education, healthcare, right? like you know everything that is like you know everything that is like you know everything that is regulated by the US government is going regulated by the US government is going regulated by the US government is going up in cost because in many ways up in cost because in many ways up in cost because in many ways Keynesianism again is communism for Keynesianism again is communism for Keynesianism again is communism for whims. So the point is and to understand whims. So the point is and to understand whims. So the point is and to understand at a system level at a system level at a system level there there are always short-term costs there there are always short-term costs there there are always short-term costs of disruption. If you were to what did of disruption. If you were to what did of disruption. If you were to what did it look like to disrupt education? Well it look like to disrupt education? Well it look like to disrupt education? Well all kinds of universities and schools go all kinds of universities and schools go all kinds of universities and schools go out of work, teachers go out of work and out of work, teachers go out of work and out of work, teachers go out of work and so and so forth. But you have so and so forth. But you have so and so forth. But you have hyperdelated cost of education. hyperdelated cost of education. hyperdelated cost of education. So the system will fight that because So the system will fight that because So the system will fight that because there's million there's teachers unions there's million there's teachers unions there's million there's teachers unions there you know universities are very there you know universities are very there you know universities are very powerful political actors right powerful political actors right powerful political actors right similarly like real estate Trump has similarly like real estate Trump has similarly like real estate Trump has actually said he doesn't want real actually said he doesn't want real actually said he doesn't want real estate prices to go down. estate prices to go down. estate prices to go down. >> Yeah >> Yeah >> Yeah >> Xi in China. >> Xi in China. >> Xi in China. >> Go ahead. >> Go ahead. >> Go ahead. >> I just said don't get me started that >> I just said don't get me started that >> I just said don't get me started that one's a wind up for me. one's a wind up for me. one's a wind up for me. >> Right. So, so that's why literally Fed >> Right. So, so that's why literally Fed >> Right. So, so that's why literally Fed policy for the last few for for a long policy for the last few for for a long policy for the last few for for a long period of time has been to prop up period of time has been to prop up period of time has been to prop up housing prices. And in fact, if you've housing prices. And in fact, if you've housing prices. And in fact, if you've seen the so-called case Schiller index, seen the so-called case Schiller index, seen the so-called case Schiller index, right, like uh it is actually beyond right, like uh it is actually beyond right, like uh it is actually beyond where the housing price bubble uh was, where the housing price bubble uh was, where the housing price bubble uh was, right? right? right? >> Yeah. This is going to make me mad. I >> Yeah. This is going to make me mad. I >> Yeah. This is going to make me mad. I can already tell. can already tell. can already tell. >> Yeah. So, um so look at this this bad >> Yeah. So, um so look at this this bad >> Yeah. So, um so look at this this bad boy. Here we are. This was the the the boy. Here we are. This was the the the boy. Here we are. This was the the the so-called mortgage bubble and here's the so-called mortgage bubble and here's the so-called mortgage bubble and here's the crash. crash. crash. >> Jesus. And look at how much we've mooned >> Jesus. And look at how much we've mooned >> Jesus. And look at how much we've mooned since then. since then. since then. >> [ __ ] hell. >> [ __ ] hell. >> [ __ ] hell. >> That is crazy. >> That is crazy. >> That is crazy. >> So, so we're due for something that's >> So, so we're due for something that's >> So, so we're due for something that's much much much bigger than 2008. much much much bigger than 2008. much much much bigger than 2008. >> And >> And >> And >> unfortunately, right? And the thing >> unfortunately, right? And the thing >> unfortunately, right? And the thing about this just to just to show this is about this just to just to show this is about this just to just to show this is it's an unusual article that is actually it's an unusual article that is actually it's an unusual article that is actually very explicit about how like the very explicit about how like the very explicit about how like the connection between the money printing connection between the money printing connection between the money printing and this. So, how did this happen? Well, and this. So, how did this happen? Well, and this. So, how did this happen? Well, um, this article from NPR of all places um, this article from NPR of all places um, this article from NPR of all places in in 2010, back when they printed some in in 2010, back when they printed some in in 2010, back when they printed some true things. Haha. Okay. How to spend true things. Haha. Okay. How to spend true things. Haha. Okay. How to spend 1.25 trillion. So, these two people are 1.25 trillion. So, these two people are 1.25 trillion. So, these two people are at the Fed and how do they spend 1.25 at the Fed and how do they spend 1.25 at the Fed and how do they spend 1.25 trillion. So, they basically, so look at trillion. So, they basically, so look at trillion. So, they basically, so look at this. Ready? this. Ready? this. Ready? They just hit a button. They they told They just hit a button. They they told They just hit a button. They they told us they were 61 short. They bought1 us they were 61 short. They bought1 us they were 61 short. They bought1 trill249 trill249 trill249 billion999,999,99939 uh dollars worth of mortgage back bonds. uh dollars worth of mortgage back bonds. The Fed was able to spend so much money The Fed was able to spend so much money The Fed was able to spend so much money so quickly because it has a unique so quickly because it has a unique so quickly because it has a unique power. It can create money out of thin power. It can create money out of thin power. It can create money out of thin air whenever it decides to do so. So the air whenever it decides to do so. So the air whenever it decides to do so. So the mortgage team would decide to buy a mortgage team would decide to buy a mortgage team would decide to buy a bond. They push a button in the computer bond. They push a button in the computer bond. They push a button in the computer and voila, money is created. and voila, money is created. and voila, money is created. >> Wow. They actually get rid of all of the >> Wow. They actually get rid of all of the >> Wow. They actually get rid of all of the offiscation, all the stuff about Go offiscation, all the stuff about Go offiscation, all the stuff about Go ahead. ahead. ahead. >> No, it's just right there. It's just >> No, it's just right there. It's just >> No, it's just right there. It's just right there. Okay. So, it has the unique right there. Okay. So, it has the unique right there. Okay. So, it has the unique power can create. So, this is as middle power can create. So, this is as middle power can create. So, this is as middle Freeman said, uh, inflation is taxation Freeman said, uh, inflation is taxation Freeman said, uh, inflation is taxation without legislation. Now, by the way, without legislation. Now, by the way, without legislation. Now, by the way, $1.25 trillion just to put that in $1.25 trillion just to put that in $1.25 trillion just to put that in context. Like, I mean, you're an context. Like, I mean, you're an context. Like, I mean, you're an entrepreneur, right? You you you you entrepreneur, right? You you you you entrepreneur, right? You you you you sold the the like the was it the protein sold the the like the was it the protein sold the the like the was it the protein or health bars? or health bars? or health bars? >> Yep. >> Yep. >> Yep. >> Right. Quest. Okay. Yeah. >> Right. Quest. Okay. Yeah. >> Right. Quest. Okay. Yeah. >> Quest bars, which is great. Now, >> Quest bars, which is great. Now, >> Quest bars, which is great. Now, a trillion dollars. Imagine selling a a trillion dollars. Imagine selling a a trillion dollars. Imagine selling a thousand dollars worth of Quest bars to thousand dollars worth of Quest bars to thousand dollars worth of Quest bars to everybody in China. everybody in China. everybody in China. That's what a trillion a thousand times That's what a trillion a thousand times That's what a trillion a thousand times a billion is a trillion, right? And a billion is a trillion, right? And a billion is a trillion, right? And obviously that's that's a trillion in obviously that's that's a trillion in obviously that's that's a trillion in revenue. That's not a trillion in revenue. That's not a trillion in revenue. That's not a trillion in profit. Like what are your actual profit. Like what are your actual profit. Like what are your actual margins on those quest bars? I don't margins on those quest bars? I don't margins on those quest bars? I don't know. Like whatever whatever percent it know. Like whatever whatever percent it know. Like whatever whatever percent it is. Okay. So, is. Okay. So, is. Okay. So, so, so this was a trillion in profit so, so this was a trillion in profit so, so this was a trillion in profit and instantly and instantly and instantly with no by by hitting a button, right? with no by by hitting a button, right? with no by by hitting a button, right? >> So, the time expenditure, right? The >> So, the time expenditure, right? The >> So, the time expenditure, right? The labor expenditure, the profitability labor expenditure, the profitability labor expenditure, the profitability and and the invisibility of it, and and the invisibility of it, and and the invisibility of it, >> right? Nobody even understands that this >> right? Nobody even understands that this >> right? Nobody even understands that this is happening. is happening. is happening. >> That's the problem. Even people hearing >> That's the problem. Even people hearing >> That's the problem. Even people hearing this right now, I know some percentage this right now, I know some percentage this right now, I know some percentage of them do not understand that that is of them do not understand that that is of them do not understand that that is the worst thing in the world. that that the worst thing in the world. that that the worst thing in the world. that that is taking money. It's taking purchasing is taking money. It's taking purchasing is taking money. It's taking purchasing power, but you might as well think of it power, but you might as well think of it power, but you might as well think of it as taking money from you. It's as taking money from you. It's as taking money from you. It's absolutely insane. All right, Bology, absolutely insane. All right, Bology, absolutely insane. All right, Bology, you just put a really important piece on you just put a really important piece on you just put a really important piece on the table that I'd never considered. the table that I'd never considered. the table that I'd never considered. It's very powerful look at China through It's very powerful look at China through It's very powerful look at China through a totally new lens. Certainly, the a totally new lens. Certainly, the a totally new lens. Certainly, the housing market is terrifying. Um, now housing market is terrifying. Um, now housing market is terrifying. Um, now walk me through. So, the US, from where walk me through. So, the US, from where walk me through. So, the US, from where I'm sitting, I can paint you a picture I'm sitting, I can paint you a picture I'm sitting, I can paint you a picture of the moves that Trump is making have of the moves that Trump is making have of the moves that Trump is making have everything to do with China, very little everything to do with China, very little everything to do with China, very little to do with Venezuela, very little to do to do with Venezuela, very little to do to do with Venezuela, very little to do with Iran. Um, and it is an American with Iran. Um, and it is an American with Iran. Um, and it is an American empire in decline that realizes that it empire in decline that realizes that it empire in decline that realizes that it has to establish itself as the dominant has to establish itself as the dominant has to establish itself as the dominant power basically anywhere that it can. I power basically anywhere that it can. I power basically anywhere that it can. I think it's given up, you already touched think it's given up, you already touched think it's given up, you already touched on this, I think it's given up on the on this, I think it's given up on the on this, I think it's given up on the Southeast Asia. It's just like that's Southeast Asia. It's just like that's Southeast Asia. It's just like that's going to be China's neighborhood, but going to be China's neighborhood, but going to be China's neighborhood, but we're going to lock down South America. we're going to lock down South America. we're going to lock down South America. We're going to lock down North America. We're going to lock down North America. We're going to lock down North America. And because I he he's running, as far as And because I he he's running, as far as And because I he he's running, as far as I'm concerned, a do or die strategy with I'm concerned, a do or die strategy with I'm concerned, a do or die strategy with the economy where he's going to spend the economy where he's going to spend the economy where he's going to spend and inflate the currency like crazy, and inflate the currency like crazy, and inflate the currency like crazy, devalue the dollar, do the whole devalue the dollar, do the whole devalue the dollar, do the whole shebang, and his only chance out from shebang, and his only chance out from shebang, and his only chance out from under that is to grow. And so when he under that is to grow. And so when he under that is to grow. And so when he looks at the Middle East, which has looks at the Middle East, which has looks at the Middle East, which has aggregated just an unbelievable amount aggregated just an unbelievable amount aggregated just an unbelievable amount of capital, he went early on in his of capital, he went early on in his of capital, he went early on in his second term, he got $2 trillion roughly second term, he got $2 trillion roughly second term, he got $2 trillion roughly in deals. But he knows that that's in deals. But he knows that that's in deals. But he knows that that's contingent on a stable Middle East where contingent on a stable Middle East where contingent on a stable Middle East where the straight of Hormuz isn't being the straight of Hormuz isn't being the straight of Hormuz isn't being choked out by the Iranians, where the choked out by the Iranians, where the choked out by the Iranians, where the Gulf States that he's getting these Gulf States that he's getting these Gulf States that he's getting these contributions from, they don't have to contributions from, they don't have to contributions from, they don't have to hold that money back to repair a hold that money back to repair a hold that money back to repair a desalinization plant or to um deal with desalinization plant or to um deal with desalinization plant or to um deal with other oil infrastructure that um Iran other oil infrastructure that um Iran other oil infrastructure that um Iran has bombed into oblivion. So when I look has bombed into oblivion. So when I look has bombed into oblivion. So when I look at the move that he makes, I'm like, at the move that he makes, I'm like, at the move that he makes, I'm like, "Oh, this is him trying to make sure "Oh, this is him trying to make sure "Oh, this is him trying to make sure that he doesn't go to jail." effectively that he doesn't go to jail." effectively that he doesn't go to jail." effectively because I think if he gets impeached at because I think if he gets impeached at because I think if he gets impeached at the mid or if he loses his midterms he the mid or if he loses his midterms he the mid or if he loses his midterms he will get impeached once he's out of will get impeached once he's out of will get impeached once he's out of office they will hound him until he is office they will hound him until he is office they will hound him until he is in prison. Um, so I think for him this in prison. Um, so I think for him this in prison. Um, so I think for him this is existential and I think he is existential and I think he is existential and I think he understands, okay, I've got that wind in understands, okay, I've got that wind in understands, okay, I've got that wind in my back and then I also have to deal my back and then I also have to deal my back and then I also have to deal with the fact that we've got to with the fact that we've got to with the fact that we've got to quarantine China somehow. And so by quarantine China somehow. And so by quarantine China somehow. And so by making their unsanctionable oil making their unsanctionable oil making their unsanctionable oil impossible for them to grab, eh, it may impossible for them to grab, eh, it may impossible for them to grab, eh, it may only be 20% of their oil, but it's only be 20% of their oil, but it's only be 20% of their oil, but it's better than nothing. And so you put all better than nothing. And so you put all better than nothing. And so you put all that together and that to me explains that together and that to me explains that together and that to me explains the behavior that I see on behalf of the behavior that I see on behalf of the behavior that I see on behalf of America right now. Do you see something America right now. Do you see something America right now. Do you see something different or does that map for you? Um I different or does that map for you? Um I different or does that map for you? Um I understand where that's coming from but understand where that's coming from but understand where that's coming from but I would say I do see a fair amount I would say I do see a fair amount I would say I do see a fair amount different and here's why. First is I different and here's why. First is I different and here's why. First is I think the word American is like the word think the word American is like the word think the word American is like the word Korean. And when you say Korean, I think Korean. And when you say Korean, I think Korean. And when you say Korean, I think one has to distinguish immediately. Is one has to distinguish immediately. Is one has to distinguish immediately. Is it North Korean or South Korean? it North Korean or South Korean? it North Korean or South Korean? >> Yo, you're saying something here, >> Yo, you're saying something here, >> Yo, you're saying something here, Bology. All right, say more. I I know Bology. All right, say more. I I know Bology. All right, say more. I I know where this argument goes, but let's hear where this argument goes, but let's hear where this argument goes, but let's hear it. it. it. >> Yeah. So, the thing is that when one >> Yeah. So, the thing is that when one >> Yeah. So, the thing is that when one says American, unfortunately, like, you says American, unfortunately, like, you says American, unfortunately, like, you know, when you and I grew up, you know, know, when you and I grew up, you know, know, when you and I grew up, you know, when we were kids, you'd say, you know, when we were kids, you'd say, you know, when we were kids, you'd say, you know, I pledge allegiance to United States, I pledge allegiance to United States, I pledge allegiance to United States, America, and to the republic which America, and to the republic which America, and to the republic which stands, one republic indivisible with stands, one republic indivisible with stands, one republic indivisible with liberty and justice for all, right? And liberty and justice for all, right? And liberty and justice for all, right? And the unfortunate thing is, and I can show the unfortunate thing is, and I can show the unfortunate thing is, and I can show chart after chart on this, but it is chart after chart on this, but it is chart after chart on this, but it is actually so polarized that like like actually so polarized that like like actually so polarized that like like America doesn't exist. There's blue America doesn't exist. There's blue America doesn't exist. There's blue America and red America and tech America America and red America and tech America America and red America and tech America and all these different subtribes within and all these different subtribes within and all these different subtribes within it, right? Just to show you some graphs it, right? Just to show you some graphs it, right? Just to show you some graphs on this, right? Um I'll show you three. on this, right? Um I'll show you three. on this, right? Um I'll show you three. Okay, so uh there is this graph which Okay, so uh there is this graph which Okay, so uh there is this graph which shows uh Congress polarizing before shows uh Congress polarizing before shows uh Congress polarizing before Trump even arose. Okay, this is like, Trump even arose. Okay, this is like, Trump even arose. Okay, this is like, you know, 2015. Okay, so I'm not sure if you know, 2015. Okay, so I'm not sure if you know, 2015. Okay, so I'm not sure if you can see that, but each, do you see you can see that, but each, do you see you can see that, but each, do you see 1965 and 1995 how it like comes apart 1965 and 1995 how it like comes apart 1965 and 1995 how it like comes apart like this? like this? like this? >> Yep. Very clear. >> Yep. Very clear. >> Yep. Very clear. >> What you're seeing here, each node is a >> What you're seeing here, each node is a >> What you're seeing here, each node is a congressman. Blue is Democrat, red is congressman. Blue is Democrat, red is congressman. Blue is Democrat, red is Republican. And in the 1960s and 1950s, Republican. And in the 1960s and 1950s, Republican. And in the 1960s and 1950s, an edge between them means they voted an edge between them means they voted an edge between them means they voted the same way on the same bill. Yes or no the same way on the same bill. Yes or no the same way on the same bill. Yes or no together. Okay. After 1991, without the together. Okay. After 1991, without the together. Okay. After 1991, without the Soviet Union as a common enemy to keep Soviet Union as a common enemy to keep Soviet Union as a common enemy to keep the US together, the only people the US together, the only people the US together, the only people Democrats and Republicans had to fight Democrats and Republicans had to fight Democrats and Republicans had to fight was each other. And so they politically was each other. And so they politically was each other. And so they politically polarized. Okay. polarized. Okay. polarized. Okay. >> This is crazy to see it like this. >> This is crazy to see it like this. >> This is crazy to see it like this. >> Yes. So it's quantitative, right? And >> Yes. So it's quantitative, right? And >> Yes. So it's quantitative, right? And and this is something which has gone on and this is something which has gone on and this is something which has gone on for 70 years. It's not like a short-term for 70 years. It's not like a short-term for 70 years. It's not like a short-term thing. And uh and then what happened was thing. And uh and then what happened was thing. And uh and then what happened was uh this actually extended from Congress uh this actually extended from Congress uh this actually extended from Congress to the population by that. So that last to the population by that. So that last to the population by that. So that last graph was 20 uh up to 20 uh uh that was graph was 20 uh up to 20 uh uh that was graph was 20 uh up to 20 uh uh that was up to 2011. It was calculated in 2015. up to 2011. It was calculated in 2015. up to 2011. It was calculated in 2015. This is a totally different graphic that This is a totally different graphic that This is a totally different graphic that shows the same concept, but it's on shows the same concept, but it's on shows the same concept, but it's on Twitter and you can see blue nodes and Twitter and you can see blue nodes and Twitter and you can see blue nodes and red nodes. This is 2017 right as Trump red nodes. This is 2017 right as Trump red nodes. This is 2017 right as Trump was elected. And blues just don't friend was elected. And blues just don't friend was elected. And blues just don't friend reds and vice versa. They don't even reds and vice versa. They don't even reds and vice versa. They don't even follow the same kinds of groups. follow the same kinds of groups. follow the same kinds of groups. >> Wow, that is crazy. >> Wow, that is crazy. >> Wow, that is crazy. >> Okay, so this is 2017 and you can see >> Okay, so this is 2017 and you can see >> Okay, so this is 2017 and you can see the mitosis happening. By 2025, the the mitosis happening. By 2025, the the mitosis happening. By 2025, the digital secession was already here where digital secession was already here where digital secession was already here where blues are on blue sky and they're on blues are on blue sky and they're on blues are on blue sky and they're on threads and they're on, you know, Tik threads and they're on, you know, Tik threads and they're on, you know, Tik Tok, right? And reds are on X and Tok, right? And reds are on X and Tok, right? And reds are on X and they're on Truth Social and Gab and they're on Truth Social and Gab and they're on Truth Social and Gab and whatever, right? And so the, you know, whatever, right? And so the, you know, whatever, right? And so the, you know, Americans like Blue Sky and Truth Americans like Blue Sky and Truth Americans like Blue Sky and Truth Social, they're both speaking English, Social, they're both speaking English, Social, they're both speaking English, but their entire worldview and premises but their entire worldview and premises but their entire worldview and premises are completely different. As different I are completely different. As different I are completely different. As different I would argue, as like North Korea and would argue, as like North Korea and would argue, as like North Korea and South Korea, you know, or becoming as South Korea, you know, or becoming as South Korea, you know, or becoming as different. The digital split has already different. The digital split has already different. The digital split has already happened where Democrats and happened where Democrats and happened where Democrats and Republicans, they don't talk to each Republicans, they don't talk to each Republicans, they don't talk to each other. They don't marry each other, by other. They don't marry each other, by other. They don't marry each other, by the way. So like that's another thing. the way. So like that's another thing. the way. So like that's another thing. Democrats. Um, essentially only 4% of Democrats. Um, essentially only 4% of Democrats. Um, essentially only 4% of Democrats marry Republicans. Democrats marry Republicans. Democrats marry Republicans. >> Wow. >> Wow. >> Wow. >> Okay. So, this one. >> Okay. So, this one. >> Okay. So, this one. >> Yeah. So, here's this graphic. Ready? >> Yeah. So, here's this graphic. Ready? >> Yeah. So, here's this graphic. Ready? Um, so what that means is if you see Um, so what that means is if you see Um, so what that means is if you see this, marriages between Democrats and this, marriages between Democrats and this, marriages between Democrats and Republicans are rare between Democrat. Republicans are rare between Democrat. Republicans are rare between Democrat. This study shows 4%. This study shows 4%. This study shows 4%. >> Okay. >> Okay. >> Okay. >> That means ideology becomes biology in >> That means ideology becomes biology in >> That means ideology becomes biology in one generation. Like it's like an ethnic one generation. Like it's like an ethnic one generation. Like it's like an ethnic split. split. split. Right. That's at a minimum Protestant, Right. That's at a minimum Protestant, Right. That's at a minimum Protestant, Catholic, Sunni, Shiite is Democrat, Catholic, Sunni, Shiite is Democrat, Catholic, Sunni, Shiite is Democrat, Republican. Republican. Republican. >> That's a crazy statement, Bali. Those >> That's a crazy statement, Bali. Those >> That's a crazy statement, Bali. Those groups kill each other historically. groups kill each other historically. groups kill each other historically. >> Unfortunately, yes. And that's what's >> Unfortunately, yes. And that's what's >> Unfortunately, yes. And that's what's like basically, like basically, like basically, for example, this Minnesota for example, this Minnesota for example, this Minnesota confrontation that happened earlier this confrontation that happened earlier this confrontation that happened earlier this year was these two clouds getting year was these two clouds getting year was these two clouds getting printed out in the physical world. Why printed out in the physical world. Why printed out in the physical world. Why were the Democrats running around were the Democrats running around were the Democrats running around looking for ice? because the blue looking for ice? because the blue looking for ice? because the blue metaorganism metaorganism metaorganism wanted to fight the red meta oranism in wanted to fight the red meta oranism in wanted to fight the red meta oranism in physical space finally. And it's not like Democrats are actually And it's not like Democrats are actually against the concept of strong borders in against the concept of strong borders in against the concept of strong borders in mass deportation. Why? They wanted to mass deportation. Why? They wanted to mass deportation. Why? They wanted to deport ICE ICE out, deport ICE ICE out, deport ICE ICE out, right? They wanted Republicans out of right? They wanted Republicans out of right? They wanted Republicans out of Democrat territory. Okay? And so, for Democrat territory. Okay? And so, for Democrat territory. Okay? And so, for example, there's this concept that um example, there's this concept that um example, there's this concept that um has been going viral on Democrat uh has been going viral on Democrat uh has been going viral on Democrat uh channels. It's called soft secession. channels. It's called soft secession. channels. It's called soft secession. And basically, it's taking all the rep And basically, it's taking all the rep And basically, it's taking all the rep this this is a it's time for Americans this this is a it's time for Americans this this is a it's time for Americans to start talking about soft session. to start talking about soft session. to start talking about soft session. Blue states are finally learning what Blue states are finally learning what Blue states are finally learning what red states have known all along. You red states have known all along. You red states have known all along. You don't need federal permission to govern. don't need federal permission to govern. don't need federal permission to govern. So, invoking all the 10th amendment So, invoking all the 10th amendment So, invoking all the 10th amendment rhetoric, you know, wargaming scenarios rhetoric, you know, wargaming scenarios rhetoric, you know, wargaming scenarios where federal agents show up, continue where federal agents show up, continue where federal agents show up, continue to transgress further and further past to transgress further and further past to transgress further and further past what is legal, right? And so essentially what is legal, right? And so essentially what is legal, right? And so essentially Democrat governors are filing lawsuits Democrat governors are filing lawsuits Democrat governors are filing lawsuits and and so on to basically three sources and and so on to basically three sources and and so on to basically three sources between Democrat AG say the same phrase between Democrat AG say the same phrase between Democrat AG say the same phrase keeps coming up that nobody wants to say keeps coming up that nobody wants to say keeps coming up that nobody wants to say it publicly. Soft secession. Okay. So it publicly. Soft secession. Okay. So it publicly. Soft secession. Okay. So >> what what exactly would soft secession >> what what exactly would soft secession >> what what exactly would soft secession be? be? be? >> For example, Nuome has said he does not >> For example, Nuome has said he does not >> For example, Nuome has said he does not want to enforce tariffs on China at want to enforce tariffs on China at want to enforce tariffs on China at California ports. >> Whoa. >> Whoa. Okay. So, because Okay. So, because Okay. So, because >> that is a if you think about what that >> that is a if you think about what that >> that is a if you think about what that means, that is a way for him to have means, that is a way for him to have means, that is a way for him to have like a left populist thing versus Trump, like a left populist thing versus Trump, like a left populist thing versus Trump, right? And um he can reduce costs in right? And um he can reduce costs in right? And um he can reduce costs in theory in ch in California by taking theory in ch in California by taking theory in ch in California by taking Chinese goods. And actually um so this Chinese goods. And actually um so this Chinese goods. And actually um so this is the thing that I don't think people is the thing that I don't think people is the thing that I don't think people fully get is you're going to see you're fully get is you're going to see you're fully get is you're going to see you're actually are already seeing um Democrats actually are already seeing um Democrats actually are already seeing um Democrats lining up with China more right uh for lining up with China more right uh for lining up with China more right uh for example just to just be very concrete example just to just be very concrete example just to just be very concrete about this cuz I'm not saying this as oh about this cuz I'm not saying this as oh about this cuz I'm not saying this as oh it's for example in 2023 okay uh Nome it's for example in 2023 okay uh Nome it's for example in 2023 okay uh Nome actually made a trip to China and he's actually made a trip to China and he's actually made a trip to China and he's actually the only Democrat who actually actually the only Democrat who actually actually the only Democrat who actually was able to sit on stage with Xi and was able to sit on stage with Xi and was able to sit on stage with Xi and there's this long set of articles and so there's this long set of articles and so there's this long set of articles and so on where What Newsome said is he wanted on where What Newsome said is he wanted on where What Newsome said is he wanted to he said this quote is willing to be to he said this quote is willing to be to he said this quote is willing to be China's long-term stable and strong China's long-term stable and strong China's long-term stable and strong partner, partner, partner, right? Welcome more Newsomes to come. right? Welcome more Newsomes to come. right? Welcome more Newsomes to come. Okay, this is a nonisolated article. Okay, this is a nonisolated article. Okay, this is a nonisolated article. It's like, you know, welcome news to It's like, you know, welcome news to It's like, you know, welcome news to come. Newsome willing to push California come. Newsome willing to push California come. Newsome willing to push California to be China's long-term stable strong to be China's long-term stable strong to be China's long-term stable strong partner, strengthened relationship. partner, strengthened relationship. partner, strengthened relationship. California government says China success California government says China success California government says China success to benefit the world, right? And the to benefit the world, right? And the to benefit the world, right? And the thing is that even in 2023, there's a thing is that even in 2023, there's a thing is that even in 2023, there's a 20point gap between Democrats and 20point gap between Democrats and 20point gap between Democrats and Republicans on China where Democrats Republicans on China where Democrats Republicans on China where Democrats want to cooperate more with China than want to cooperate more with China than want to cooperate more with China than Republicans do. is roughly like Republicans do. is roughly like Republicans do. is roughly like Republicans more sympathetic to Russia, Republicans more sympathetic to Russia, Republicans more sympathetic to Russia, Democrats more sympathetic to China Democrats more sympathetic to China Democrats more sympathetic to China roughly. Okay. roughly. Okay. roughly. Okay. And so as a consequence, um, you know, And so as a consequence, um, you know, And so as a consequence, um, you know, you're going to see, uh, I thought it you're going to see, uh, I thought it you're going to see, uh, I thought it was going to happen with Newsome first, was going to happen with Newsome first, was going to happen with Newsome first, but it actually happened with Carney in but it actually happened with Carney in but it actually happened with Carney in Canada first. Canada first. Canada first. >> The Western left has lost DC, so turns >> The Western left has lost DC, so turns >> The Western left has lost DC, so turns to she. to she. to she. >> Yeah. >> Yeah. >> Yeah. >> And so the immersion effect, remember I >> And so the immersion effect, remember I >> And so the immersion effect, remember I talked about the force diagram, right? talked about the force diagram, right? talked about the force diagram, right? Democrats are driving the tech guys out Democrats are driving the tech guys out Democrats are driving the tech guys out of California, out of Seattle, of California, out of Seattle, of California, out of Seattle, and they're going to bring in Chinese and they're going to bring in Chinese and they're going to bring in Chinese money in one thing that I've always been um I've one thing that I've always been um I've always struggled with with your always struggled with with your always struggled with with your philosophy is the geography doesn't philosophy is the geography doesn't philosophy is the geography doesn't matter part of it. Now seeing some of matter part of it. Now seeing some of matter part of it. Now seeing some of the things you're doing with the network the things you're doing with the network the things you're doing with the network state, I think maybe either I state, I think maybe either I state, I think maybe either I misunderstood your philosophy or you've misunderstood your philosophy or you've misunderstood your philosophy or you've come to my side, which is that the come to my side, which is that the come to my side, which is that the physicality of it really does matter. physicality of it really does matter. physicality of it really does matter. Walk me through how America breaks apart Walk me through how America breaks apart Walk me through how America breaks apart if this continues. if this continues. if this continues. >> Yes. So the thing about network state >> Yes. So the thing about network state >> Yes. So the thing about network state and so on is it's cloud first, land and so on is it's cloud first, land and so on is it's cloud first, land last, but not land never. last, but not land never. last, but not land never. >> Got it. >> Got it. >> Got it. So say you start with an online So say you start with an online So say you start with an online community and then you crowdfund community and then you crowdfund community and then you crowdfund territory because of course we're territory because of course we're territory because of course we're physical beings. physical beings. physical beings. >> Yeah. >> Yeah. >> Yeah. >> But the land is just a parameter. That >> But the land is just a parameter. That >> But the land is just a parameter. That is to say, you know, if you if you hold is to say, you know, if you if you hold is to say, you know, if you if you hold an impact theory conference, does it an impact theory conference, does it an impact theory conference, does it matter that much which city it's in? No. matter that much which city it's in? No. matter that much which city it's in? No. The community matters first. The community matters first. The community matters first. >> Cloud first, land last, but not land >> Cloud first, land last, but not land >> Cloud first, land last, but not land never. So first they see you online, never. So first they see you online, never. So first they see you online, they click the thing, then they come to they click the thing, then they come to they click the thing, then they come to the physical location, but that's the physical location, but that's the physical location, but that's secondary and the community is primary. secondary and the community is primary. secondary and the community is primary. >> Okay, understood. Now give me >> Okay, understood. Now give me >> Okay, understood. Now give me >> Now how does that America? >> Now how does that America? >> Now how does that America? >> Yeah. >> Yeah. >> Yeah. >> Okay, so my view is uh Mark Carney his >> Okay, so my view is uh Mark Carney his >> Okay, so my view is uh Mark Carney his speech earlier this year was the most speech earlier this year was the most speech earlier this year was the most important speech important speech important speech since uh Trump came down the escalator since uh Trump came down the escalator since uh Trump came down the escalator in 2015. in 2015. in 2015. >> Damn. And the reason is that Trump >> Damn. And the reason is that Trump >> Damn. And the reason is that Trump basically said basically said basically said that the West is losing to China and that the West is losing to China and that the West is losing to China and Mark Carney basically said whether you Mark Carney basically said whether you Mark Carney basically said whether you agree or not the West has lost to China. So Trump was basically we you know we So Trump was basically we you know we need to push back like he he was he was need to push back like he he was he was need to push back like he he was he was kind of like a turnaround CEO. There's a kind of like a turnaround CEO. There's a kind of like a turnaround CEO. There's a there's a term used in the first term there's a term used in the first term there's a term used in the first term which was uh the flight 93 which was uh the flight 93 which was uh the flight 93 administration or the flight the flight administration or the flight the flight administration or the flight the flight 93 election. Do you remember that? 93 election. Do you remember that? 93 election. Do you remember that? >> I remember flight 93. I don't remember >> I remember flight 93. I don't remember >> I remember flight 93. I don't remember this statement about the administration. this statement about the administration. this statement about the administration. >> The the argument for Trump in the first >> The the argument for Trump in the first >> The the argument for Trump in the first uh the first term was there's an argu uh uh the first term was there's an argu uh uh the first term was there's an argu uh basically an article in Claremont which basically an article in Claremont which basically an article in Claremont which was called the flight 93 election and was called the flight 93 election and was called the flight 93 election and basically said conservatives would basically said conservatives would basically said conservatives would always say the country's going to hell always say the country's going to hell always say the country's going to hell in a hand basket but if you actually see in a hand basket but if you actually see in a hand basket but if you actually see what's happening it really is we need to what's happening it really is we need to what's happening it really is we need to hit the emergency button and Trump is hit the emergency button and Trump is hit the emergency button and Trump is that emergency button. Now many didn't that emergency button. Now many didn't that emergency button. Now many didn't agree with this at that time and they agree with this at that time and they agree with this at that time and they felt that Trump was a radical move that felt that Trump was a radical move that felt that Trump was a radical move that wasn't necessary but the condition of wasn't necessary but the condition of wasn't necessary but the condition of the US has worsened since that point and the US has worsened since that point and the US has worsened since that point and some will argue whether it's due to it some will argue whether it's due to it some will argue whether it's due to it or whatever not I mean there's truth to or whatever not I mean there's truth to or whatever not I mean there's truth to all of it okay point being this in many all of it okay point being this in many all of it okay point being this in many ways is the sequel to that this is a ways is the sequel to that this is a ways is the sequel to that this is a flight 93 administration they've rushed flight 93 administration they've rushed flight 93 administration they've rushed the cockpit the cockpit the cockpit but is a plane still going to crash but is a plane still going to crash but is a plane still going to crash unfortunately I think it it is I think unfortunately I think it it is I think unfortunately I think it it is I think it's like it's not something where not it's like it's not something where not it's like it's not something where not everything can be saved everything can be saved everything can be saved like it's something where um like Rome like it's something where um like Rome like it's something where um like Rome did fall unfortunately, right? Like the did fall unfortunately, right? Like the did fall unfortunately, right? Like the British Empire, the sun did set on the British Empire, the sun did set on the British Empire, the sun did set on the British Empire. There's certain things British Empire. There's certain things British Empire. There's certain things where the late breaking turnaround kind where the late breaking turnaround kind where the late breaking turnaround kind of thing just doesn't work and it hits of thing just doesn't work and it hits of thing just doesn't work and it hits the ground. Okay, so what do I think the ground. Okay, so what do I think the ground. Okay, so what do I think happens? I I think what's already happens? I I think what's already happens? I I think what's already happening carnese Canada is like a land happening carnese Canada is like a land happening carnese Canada is like a land bridge where if you visualize it there's bridge where if you visualize it there's bridge where if you visualize it there's Washington and Oregon and California the Washington and Oregon and California the Washington and Oregon and California the Great Lakes states and New York and the Great Lakes states and New York and the Great Lakes states and New York and the New England states and basically all the New England states and basically all the New England states and basically all the blue states border Canada and what you blue states border Canada and what you blue states border Canada and what you know Trump said is that you know he know Trump said is that you know he know Trump said is that you know he doesn't want Canada become a drop off doesn't want Canada become a drop off doesn't want Canada become a drop off point for Chinese goods but that's point for Chinese goods but that's point for Chinese goods but that's exactly what Carney is doing because he exactly what Carney is doing because he exactly what Carney is doing because he basically said that he's going to take basically said that he's going to take basically said that he's going to take away tariffs on Chinese EVs. But more away tariffs on Chinese EVs. But more away tariffs on Chinese EVs. But more than that, he also said, and this was than that, he also said, and this was than that, he also said, and this was missed, that um he's going to missed, that um he's going to missed, that um he's going to essentially allow uh the the the supply essentially allow uh the the the supply essentially allow uh the the the supply chain. Okay, what does that mean? It chain. Okay, what does that mean? It chain. Okay, what does that mean? It means that he's he's talked about we're means that he's he's talked about we're means that he's he's talked about we're going to add all kinds of electricity to going to add all kinds of electricity to going to add all kinds of electricity to Canada. Can Canada has too many Canada. Can Canada has too many Canada. Can Canada has too many regulations or whatever to do that regulations or whatever to do that regulations or whatever to do that historically, but China can do it. So, historically, but China can do it. So, historically, but China can do it. So, the Chinese are going to build the the Chinese are going to build the the Chinese are going to build the Canadian electrical grid. Canadian electrical grid. Canadian electrical grid. >> Wow. >> Wow. >> Wow. Also, he is, if you notice, Carney is Also, he is, if you notice, Carney is Also, he is, if you notice, Carney is suddenly much more confident when he's suddenly much more confident when he's suddenly much more confident when he's talking about Greenland and things like talking about Greenland and things like talking about Greenland and things like that. He said if you know there's an that. He said if you know there's an that. He said if you know there's an actual military action in Greenland, and actual military action in Greenland, and actual military action in Greenland, and we can't tell if Trump is kidding around we can't tell if Trump is kidding around we can't tell if Trump is kidding around or what have you or he's serious about or what have you or he's serious about or what have you or he's serious about it, sometimes hard to tell, but Canada it, sometimes hard to tell, but Canada it, sometimes hard to tell, but Canada and NATO treat it really seriously or and NATO treat it really seriously or and NATO treat it really seriously or they're scared of it. Fine. And and also they're scared of it. Fine. And and also they're scared of it. Fine. And and also Trump said he's going to invade Canada Trump said he's going to invade Canada Trump said he's going to invade Canada that actually I don't know if you saw that actually I don't know if you saw that actually I don't know if you saw the graph on that the graph on that the graph on that basically the Conservatives in Canada basically the Conservatives in Canada basically the Conservatives in Canada were ahead. Yeah, this is [ __ ] were ahead. Yeah, this is [ __ ] were ahead. Yeah, this is [ __ ] stupid. stupid. stupid. >> This was stupid, right? So, Coner and >> This was stupid, right? So, Coner and >> This was stupid, right? So, Coner and Canada were way ahead and then Trump Canada were way ahead and then Trump Canada were way ahead and then Trump said he's going to invade Canada and the said he's going to invade Canada and the said he's going to invade Canada and the problem is he had already lost the problem is he had already lost the problem is he had already lost the liberal Canadians and the liberal, you liberal Canadians and the liberal, you liberal Canadians and the liberal, you know, Americans, but then he lost the know, Americans, but then he lost the know, Americans, but then he lost the Conservative Canadians as well. And Conservative Canadians as well. And Conservative Canadians as well. And Carney just suddenly won. Okay. Carney just suddenly won. Okay. Carney just suddenly won. Okay. >> Yeah. >> Yeah. >> Yeah. >> So, the thing is the speculation because >> So, the thing is the speculation because >> So, the thing is the speculation because Carney hasn't said this publicly. Why is Carney hasn't said this publicly. Why is Carney hasn't said this publicly. Why is he suddenly so confident? He said if he suddenly so confident? He said if he suddenly so confident? He said if there's any invasion of Greenland then, there's any invasion of Greenland then, there's any invasion of Greenland then, you know, Landa will resist that because you know, Landa will resist that because you know, Landa will resist that because he'll have Chinese drones. he'll have Chinese drones. he'll have Chinese drones. It's wild, man. That is wild. It's wild, man. That is wild. It's wild, man. That is wild. >> And so the and you know, like you can >> And so the and you know, like you can >> And so the and you know, like you can see Democrat influencers like Hassan, see Democrat influencers like Hassan, see Democrat influencers like Hassan, he's talking about China maxing on his he's talking about China maxing on his he's talking about China maxing on his Twitter, you know, right? So there's a Twitter, you know, right? So there's a Twitter, you know, right? So there's a there's a sense like Scott Alexander. there's a sense like Scott Alexander. there's a sense like Scott Alexander. >> Yeah. Right. So now the thing about this >> Yeah. Right. So now the thing about this >> Yeah. Right. So now the thing about this is Scott Alexander has this good concept is Scott Alexander has this good concept is Scott Alexander has this good concept of in-group outgroup farroup where of in-group outgroup farroup where of in-group outgroup farroup where basically it's like it's it's another basically it's like it's it's another basically it's like it's it's another way of saying your enemy's enemy is your way of saying your enemy's enemy is your way of saying your enemy's enemy is your friend right so Democrats think their friend right so Democrats think their friend right so Democrats think their primary enemy is the Republicans and the primary enemy is the Republicans and the primary enemy is the Republicans and the Republicans enemy is China and remember Republicans enemy is China and remember Republicans enemy is China and remember the Democrats are like a information the Democrats are like a information the Democrats are like a information kind of thing right and the Republicans kind of thing right and the Republicans kind of thing right and the Republicans are like a physical manufacturing thing are like a physical manufacturing thing are like a physical manufacturing thing so the Democrats are getting like a new so the Democrats are getting like a new so the Democrats are getting like a new husband who's Xi husband who's Xi husband who's Xi instead of DC that'll provide all the instead of DC that'll provide all the instead of DC that'll provide all the physical stuff, the manufacturing and so physical stuff, the manufacturing and so physical stuff, the manufacturing and so on the Democrats are less good at. on the Democrats are less good at. on the Democrats are less good at. Meanwhile, Democrats are Meanwhile, Democrats are Meanwhile, Democrats are >> how would they actually break apart? >> how would they actually break apart? >> how would they actually break apart? Like if right now if California tried to Like if right now if California tried to Like if right now if California tried to secede while Trump was in office, secede while Trump was in office, secede while Trump was in office, military incursion guaranteed. So, military incursion guaranteed. So, military incursion guaranteed. So, >> well, just take take a look at what's >> well, just take take a look at what's >> well, just take take a look at what's happening with ICE, right? Like happening with ICE, right? Like happening with ICE, right? Like basically, is that it's like a half basically, is that it's like a half basically, is that it's like a half military incursion, but is it working? military incursion, but is it working? military incursion, but is it working? Not really, right? Kind of. It's it's Not really, right? Kind of. It's it's Not really, right? Kind of. It's it's not like the thing is it's all like a not like the thing is it's all like a not like the thing is it's all like a slapfest, right? It's not um slapfest, right? It's not um slapfest, right? It's not um >> this is a hard thing. >> this is a hard thing. >> this is a hard thing. >> This is all early days. I want you to >> This is all early days. I want you to >> This is all early days. I want you to imagine that let's say that these states imagine that let's say that these states imagine that let's say that these states do start breaking away. Much like the UK do start breaking away. Much like the UK do start breaking away. Much like the UK learned the hard way when you're not a learned the hard way when you're not a learned the hard way when you're not a part of Europe, things don't get easier, part of Europe, things don't get easier, part of Europe, things don't get easier, they get harder. And they get harder. And they get harder. And >> very good point. Yes. So, so actually >> very good point. Yes. So, so actually >> very good point. Yes. So, so actually there's a great book called Disun. there's a great book called Disun. there's a great book called Disun. Okay. It's actually about the American Okay. It's actually about the American Okay. It's actually about the American Civil War and the title of it is very Civil War and the title of it is very Civil War and the title of it is very good and even just you can read like the good and even just you can read like the good and even just you can read like the first few chapters and it it just made first few chapters and it it just made first few chapters and it it just made something clear that uh you sort of read something clear that uh you sort of read something clear that uh you sort of read in a dusty way in the history books but in a dusty way in the history books but in a dusty way in the history books but I didn't fully viscerally understand it I didn't fully viscerally understand it I didn't fully viscerally understand it till I read this book and you know how till I read this book and you know how till I read this book and you know how people the the modern American people the the modern American people the the modern American interpretation of the Civil War is it interpretation of the Civil War is it interpretation of the Civil War is it was about slavery and you know the South was about slavery and you know the South was about slavery and you know the South wanted to have the slaves and that was wanted to have the slaves and that was wanted to have the slaves and that was absolutely an important component of it absolutely an important component of it absolutely an important component of it but you'll often hear people also say but you'll often hear people also say but you'll often hear people also say something like Lincoln wanted to something like Lincoln wanted to something like Lincoln wanted to preserve the Union, right? You've heard preserve the Union, right? You've heard preserve the Union, right? You've heard that. That feels very abstract, right? that. That feels very abstract, right? that. That feels very abstract, right? What was the concrete thing? The What was the concrete thing? The What was the concrete thing? The concrete thing was many Americans had concrete thing was many Americans had concrete thing was many Americans had come from Europe and they'd seen all the come from Europe and they'd seen all the come from Europe and they'd seen all the wars in Europe. And the wars in Europe wars in Europe. And the wars in Europe wars in Europe. And the wars in Europe arose from the fact that Europe wasn't arose from the fact that Europe wasn't arose from the fact that Europe wasn't united. united. united. And because it wasn't united, you had And because it wasn't united, you had And because it wasn't united, you had all these guys fighting amongst each all these guys fighting amongst each all these guys fighting amongst each other. And so disunion was considered to other. And so disunion was considered to other. And so disunion was considered to be this crazy thing the southerners were be this crazy thing the southerners were be this crazy thing the southerners were trying that would lead to a fragmented trying that would lead to a fragmented trying that would lead to a fragmented bunch of states in North America that bunch of states in North America that bunch of states in North America that would fight each other, tax each other. would fight each other, tax each other. would fight each other, tax each other. They would lose economies of scale that They would lose economies of scale that They would lose economies of scale that fight each other, tariff each other. fight each other, tariff each other. fight each other, tariff each other. Basically, they wanted the economy of Basically, they wanted the economy of Basically, they wanted the economy of scale and the peace scale and the peace scale and the peace that came with the union. Like for them, that came with the union. Like for them, that came with the union. Like for them, the union meant peace. It meant the union meant peace. It meant the union meant peace. It meant prosperity. It meant unity. It meant a prosperity. It meant unity. It meant a prosperity. It meant unity. It meant a large free trade zone. It meant the large free trade zone. It meant the large free trade zone. It meant the opposite of all the chaos and fighting opposite of all the chaos and fighting opposite of all the chaos and fighting that they had in Europe. that they had in Europe. that they had in Europe. >> So in in other words, in the same way, >> So in in other words, in the same way, >> So in in other words, in the same way, you know, like a lot of tech guys today you know, like a lot of tech guys today you know, like a lot of tech guys today think of decentralization in almost a think of decentralization in almost a think of decentralization in almost a quasi religious way, like it is good to quasi religious way, like it is good to quasi religious way, like it is good to decentralize because it means freedom decentralize because it means freedom decentralize because it means freedom and personal sovereignty and so on and and personal sovereignty and so on and and personal sovereignty and so on and so forth. Right? At the time, these guys so forth. Right? At the time, these guys so forth. Right? At the time, these guys thought of centralization as good in a thought of centralization as good in a thought of centralization as good in a quasi religious way because it meant quasi religious way because it meant quasi religious way because it meant order and stability and scale and order and stability and scale and order and stability and scale and strength as opposed to the anarchy of strength as opposed to the anarchy of strength as opposed to the anarchy of Europe Europe Europe because there's centralization and because there's centralization and because there's centralization and decentralization cycles in history. Like decentralization cycles in history. Like decentralization cycles in history. Like once you're totally centralized, you once you're totally centralized, you once you're totally centralized, you want freedom and so on. And once you're want freedom and so on. And once you're want freedom and so on. And once you're totally decentralized, you're like, "Oh, totally decentralized, you're like, "Oh, totally decentralized, you're like, "Oh, this is anarchy. I want order." this is anarchy. I want order." this is anarchy. I want order." That's, you know, the Chinese have a That's, you know, the Chinese have a That's, you know, the Chinese have a saying which is like the empire long saying which is like the empire long saying which is like the empire long united must divide. Long divided must united must divide. Long divided must united must divide. Long divided must unite because they've been through many unite because they've been through many unite because they've been through many of these cycles in their history. Right. of these cycles in their history. Right. of these cycles in their history. Right. >> Sure. >> Sure. >> Sure. >> And and Europe has as well, but it's >> And and Europe has as well, but it's >> And and Europe has as well, but it's like break up of Rome, rebuilding, break like break up of Rome, rebuilding, break like break up of Rome, rebuilding, break up, unbundling. They call it different up, unbundling. They call it different up, unbundling. They call it different names. Okay. names. Okay. names. Okay. >> Point being that uh disunion was >> Point being that uh disunion was >> Point being that uh disunion was something that the Republicans of the something that the Republicans of the something that the Republicans of the time opposed. I mean, you can argue the time opposed. I mean, you can argue the time opposed. I mean, you can argue the parties switch sides, they switch sides parties switch sides, they switch sides parties switch sides, they switch sides multiple times, whatever, but they multiple times, whatever, but they multiple times, whatever, but they opposed it once you can articulate their opposed it once you can articulate their opposed it once you can articulate their case for it. It's like the case against case for it. It's like the case against case for it. It's like the case against the 10th amendment. the 10th amendment. the 10th amendment. It's a case that you should have a It's a case that you should have a It's a case that you should have a strong union because otherwise, as you strong union because otherwise, as you strong union because otherwise, as you point out, like think about Russia, point out, like think about Russia, point out, like think about Russia, Ukraine. They used to be part of the Ukraine. They used to be part of the Ukraine. They used to be part of the USSR and now they're not. And talk about USSR and now they're not. And talk about USSR and now they're not. And talk about losing an economy of scale. They're like losing an economy of scale. They're like losing an economy of scale. They're like killing each other by the hundreds of killing each other by the hundreds of killing each other by the hundreds of thousands, maybe the millions, spending thousands, maybe the millions, spending thousands, maybe the millions, spending billions and billions of dollars on billions and billions of dollars on billions and billions of dollars on something which within our lifetimes was something which within our lifetimes was something which within our lifetimes was a border you could just drive across and a border you could just drive across and a border you could just drive across and nobody would care at all. Right? I mean nobody would care at all. Right? I mean nobody would care at all. Right? I mean like it wasn't that easy to drive in the like it wasn't that easy to drive in the like it wasn't that easy to drive in the Soviet Union. But you understand my Soviet Union. But you understand my Soviet Union. But you understand my point, right? Like that was simply not a point, right? Like that was simply not a point, right? Like that was simply not a conflict zone. But by decentralizing it conflict zone. But by decentralizing it conflict zone. But by decentralizing it created one. And actually you realize created one. And actually you realize created one. And actually you realize this when you realize think about how this when you realize think about how this when you realize think about how many countries have United or Union in many countries have United or Union in many countries have United or Union in their name. United States of America. their name. United States of America. their name. United States of America. It's not a country but the European It's not a country but the European It's not a country but the European Union the United the Union of Soviet Union the United the Union of Soviet Union the United the Union of Soviet Socialist Republics. The United Arab Socialist Republics. The United Arab Socialist Republics. The United Arab Emirates right? Even you know like India Emirates right? Even you know like India Emirates right? Even you know like India for example or like Russia is called the for example or like Russia is called the for example or like Russia is called the Russian Federation today right? India Russian Federation today right? India Russian Federation today right? India has a concept of like union territories has a concept of like union territories has a concept of like union territories which are basically like it's got a which are basically like it's got a which are basically like it's got a federal government. Brazil, all the federal government. Brazil, all the federal government. Brazil, all the stars on its flag are like the stars on its flag are like the stars on its flag are like the individual states, right? The United individual states, right? The United individual states, right? The United Kingdom. Okay. The reason that people Kingdom. Okay. The reason that people Kingdom. Okay. The reason that people put United in the name is that it's so put United in the name is that it's so put United in the name is that it's so hard to do. hard to do. hard to do. That's why they prompt you with with the That's why they prompt you with with the That's why they prompt you with with the United States of America. Why? Like, you United States of America. Why? Like, you United States of America. Why? Like, you know, the people who architected this, know, the people who architected this, know, the people who architected this, like that's why Ben Franklin had join or like that's why Ben Franklin had join or like that's why Ben Franklin had join or die. You know, like the people who die. You know, like the people who die. You know, like the people who architected this were really smart and architected this were really smart and architected this were really smart and they understood how artificial it was to they understood how artificial it was to they understood how artificial it was to maintain a union over huge numbers of maintain a union over huge numbers of maintain a union over huge numbers of squabbling people. squabbling people. squabbling people. By default, you have lots of tribes that By default, you have lots of tribes that By default, you have lots of tribes that fight with each other. That's also fight with each other. That's also fight with each other. That's also actually monotheism accomplishes the actually monotheism accomplishes the actually monotheism accomplishes the same thing where it's like one god same thing where it's like one god same thing where it's like one god rather than n gods, right? So monotheism rather than n gods, right? So monotheism rather than n gods, right? So monotheism is centralization, polytheism is centralization, polytheism is centralization, polytheism decentralization. Again, you have an decentralization. Again, you have an decentralization. Again, you have an oscillation between these two depending oscillation between these two depending oscillation between these two depending on where you are in history. Okay. So, on where you are in history. Okay. So, on where you are in history. Okay. So, so I'm granting everything you're so I'm granting everything you're so I'm granting everything you're saying, which is that a breakup does saying, which is that a breakup does saying, which is that a breakup does cause problems, huge problems, massive cause problems, huge problems, massive cause problems, huge problems, massive problems. It reduces economies of scale. problems. It reduces economies of scale. problems. It reduces economies of scale. Like, but but we've actually already Like, but but we've actually already Like, but but we've actually already seen a preview of this. You know, in seen a preview of this. You know, in seen a preview of this. You know, in 2008, like the money printing became a 2008, like the money printing became a 2008, like the money printing became a preview for the decade to follow. preview for the decade to follow. preview for the decade to follow. >> Mhm. >> Mhm. >> Mhm. >> Like the $787 billion bailout was this >> Like the $787 billion bailout was this >> Like the $787 billion bailout was this like enormous thing. Um, completely like enormous thing. Um, completely like enormous thing. Um, completely unprecedented and then it became unprecedented and then it became unprecedented and then it became precedented. precedented. precedented. One of the things that happened during One of the things that happened during One of the things that happened during COVID, hard borders arose between COVID, hard borders arose between COVID, hard borders arose between states. Do you remember like Rhode states. Do you remember like Rhode states. Do you remember like Rhode Island and New York like the COVID Island and New York like the COVID Island and New York like the COVID crossber thing? Like even if the virus crossber thing? Like even if the virus crossber thing? Like even if the virus didn't actually abide by state borders, didn't actually abide by state borders, didn't actually abide by state borders, nevertheless you saw things that you had nevertheless you saw things that you had nevertheless you saw things that you had never seen before like people cared never seen before like people cared never seen before like people cared about the Rhode Island, you know, border about the Rhode Island, you know, border about the Rhode Island, you know, border or whatever, right? So like Russia, or whatever, right? So like Russia, or whatever, right? So like Russia, Ukraine, it was a complete nobody cared Ukraine, it was a complete nobody cared Ukraine, it was a complete nobody cared about that border. Suddenly became a about that border. Suddenly became a about that border. Suddenly became a real border, right? Another concept was real border, right? Another concept was real border, right? Another concept was like, you know, California was saying it like, you know, California was saying it like, you know, California was saying it wasn't going to pay for California wasn't going to pay for California wasn't going to pay for California legislators who went to red states legislators who went to red states legislators who went to red states because they disagreed with the social because they disagreed with the social because they disagreed with the social policies there, right? Okay. Another is policies there, right? Okay. Another is policies there, right? Okay. Another is obviously the polarization we just obviously the polarization we just obviously the polarization we just talked about. Um, talked about. Um, talked about. Um, another is uh the um another is uh the um another is uh the um you have the mass migrations from blue you have the mass migrations from blue you have the mass migrations from blue to red states, huge exodus out of to red states, huge exodus out of to red states, huge exodus out of California and that's similar to California and that's similar to California and that's similar to partition in India, right? huge partition in India, right? huge partition in India, right? huge migration from Pakistan uh you know if migration from Pakistan uh you know if migration from Pakistan uh you know if Hindus move went to India and Muslims Hindus move went to India and Muslims Hindus move went to India and Muslims went to Pakistan right that's similar to went to Pakistan right that's similar to went to Pakistan right that's similar to the blue and red migrations okay um the blue and red migrations okay um the blue and red migrations okay um and I could I could continue on this but and I could I could continue on this but and I could I could continue on this but one other key point that happened during one other key point that happened during one other key point that happened during co that people forget are the so-called co that people forget are the so-called co that people forget are the so-called interstate compacts which is a tool that interstate compacts which is a tool that interstate compacts which is a tool that exists in the constitution basically exists in the constitution basically exists in the constitution basically state governors didn't want to wait for state governors didn't want to wait for state governors didn't want to wait for Trump to act at that time so they formed Trump to act at that time so they formed Trump to act at that time so they formed like the western states compact the the like the western states compact the the like the western states compact the the great lakes compact the New England great lakes compact the New England great lakes compact the New England compact and is basically breakaway compact and is basically breakaway compact and is basically breakaway things that were unprecedented but then things that were unprecedented but then things that were unprecedented but then became precedented. You can go and look became precedented. You can go and look became precedented. You can go and look at that the interstates compact in 2020. at that the interstates compact in 2020. at that the interstates compact in 2020. So a lot of these muscles for like hard So a lot of these muscles for like hard So a lot of these muscles for like hard state borders, interstate compacts, soft state borders, interstate compacts, soft state borders, interstate compacts, soft secession by Democrats, um like you know secession by Democrats, um like you know secession by Democrats, um like you know lawsuits against the federal government, lawsuits against the federal government, lawsuits against the federal government, left and right have been doing that and left and right have been doing that and left and right have been doing that and and and at the social level it's just and and at the social level it's just and and at the social level it's just been escalating escalating. And I think been escalating escalating. And I think been escalating escalating. And I think a big problem with a lot of my American a big problem with a lot of my American a big problem with a lot of my American friends when I talk about this when we friends when I talk about this when we friends when I talk about this when we talk about um you know like where's it talk about um you know like where's it talk about um you know like where's it going to go and so on they have a mental going to go and so on they have a mental going to go and so on they have a mental model which says don't worry the model which says don't worry the model which says don't worry the pendulum will swing back pendulum will swing back pendulum will swing back right they have a model of homeostasis right they have a model of homeostasis right they have a model of homeostasis where it always comes back to like an where it always comes back to like an where it always comes back to like an equilibrium like this right there's a equilibrium like this right there's a equilibrium like this right there's a different model have you ever seen the different model have you ever seen the different model have you ever seen the Tacoma narrows bridge in Seattle Tacoma narrows bridge in Seattle Tacoma narrows bridge in Seattle >> I grew up in Tacoma I have been on it >> I grew up in Tacoma I have been on it >> I grew up in Tacoma I have been on it many many many times many many many times many many many times >> fine so gallop and Gertie as you're >> fine so gallop and Gertie as you're >> fine so gallop and Gertie as you're aware aware aware >> y swung from left to right and then >> y swung from left to right and then >> y swung from left to right and then harder to the left and harder to the harder to the left and harder to the harder to the left and harder to the right till the whole thing just right till the whole thing just right till the whole thing just collapsed into a million pieces in the collapsed into a million pieces in the collapsed into a million pieces in the ocean. ocean. ocean. >> Yep. >> Yep. >> Yep. >> That I think is a better model for what >> That I think is a better model for what >> That I think is a better model for what is happening now where if you go back is happening now where if you go back is happening now where if you go back and look at the '9s like I mean you and and look at the '9s like I mean you and and look at the '9s like I mean you and I grew up in the '90s, nobody cared I grew up in the '90s, nobody cared I grew up in the '90s, nobody cared about politics then in America. It was about politics then in America. It was about politics then in America. It was like that was like being interested in like that was like being interested in like that was like being interested in politics then was like uh being politics then was like uh being politics then was like uh being interested in the bus schedule, interested in the bus schedule, interested in the bus schedule, you know. All people cared about were you know. All people cared about were you know. All people cared about were music, movies, sports, video games. Like music, movies, sports, video games. Like music, movies, sports, video games. Like it was just this amazing vacation from it was just this amazing vacation from it was just this amazing vacation from history. history. history. And you go back and you look and the And you go back and you look and the And you go back and you look and the Democrats and Republicans were on the Democrats and Republicans were on the Democrats and Republicans were on the same page about a lot of things. same page about a lot of things. same page about a lot of things. Republicans were much more moderate. Republicans were much more moderate. Republicans were much more moderate. Democrats were much more moderate. Like Democrats were much more moderate. Like Democrats were much more moderate. Like people go and they will often use those people go and they will often use those people go and they will often use those old quotes to say what happened. old quotes to say what happened. old quotes to say what happened. >> Yeah. >> Yeah. >> Yeah. >> Right. But what happened was the met >> Right. But what happened was the met >> Right. But what happened was the met organisms upstream of them were nowhere organisms upstream of them were nowhere organisms upstream of them were nowhere near as desperate. near as desperate. near as desperate. Blues and reds, the meta organisms had Blues and reds, the meta organisms had Blues and reds, the meta organisms had much more of a food supply. They didn't much more of a food supply. They didn't much more of a food supply. They didn't feel constrained by China and the feel constrained by China and the feel constrained by China and the internet as they did. So because they internet as they did. So because they internet as they did. So because they didn't feel desperate, they could afford didn't feel desperate, they could afford didn't feel desperate, they could afford to be generous. Democrats didn't feel to be generous. Democrats didn't feel to be generous. Democrats didn't feel they had to tax everybody to oblivion. they had to tax everybody to oblivion. they had to tax everybody to oblivion. Republicans didn't feel like they had to Republicans didn't feel like they had to Republicans didn't feel like they had to be, you know, so aggressive abroad. be, you know, so aggressive abroad. be, you know, so aggressive abroad. They didn't feel like cornered, right? They didn't feel like cornered, right? They didn't feel like cornered, right? These metorganisms feel cornered. They These metorganisms feel cornered. They These metorganisms feel cornered. They feel desperate. they feel they have to feel desperate. they feel they have to feel desperate. they feel they have to strike out. strike out. strike out. >> That's a big part of what we're seeing. >> That's a big part of what we're seeing. >> That's a big part of what we're seeing. And um and I'm I'm very sympathetic and And um and I'm I'm very sympathetic and And um and I'm I'm very sympathetic and I'm empathetic to it, but I also want to I'm empathetic to it, but I also want to I'm empathetic to it, but I also want to be far away from it. be far away from it. be far away from it. So like, you know, in the sense that So like, you know, in the sense that So like, you know, in the sense that what what one thing that's happening now what what one thing that's happening now what what one thing that's happening now is Blue America, Red America, and Tech is Blue America, Red America, and Tech is Blue America, Red America, and Tech America are all taxing each other. So, America are all taxing each other. So, America are all taxing each other. So, blue America is doing the wealth tax on blue America is doing the wealth tax on blue America is doing the wealth tax on tech America, but it's also doing the tech America, but it's also doing the tech America, but it's also doing the China tax on red America where they're China tax on red America where they're China tax on red America where they're allying with China. This is the Carney allying with China. This is the Carney allying with China. This is the Carney thing. Even though Carney is not thing. Even though Carney is not thing. Even though Carney is not technically a Democrat, he is aligned technically a Democrat, he is aligned technically a Democrat, he is aligned with them, right? Like the Western left, with them, right? Like the Western left, with them, right? Like the Western left, let's call it that, right? So, the thing let's call it that, right? So, the thing let's call it that, right? So, the thing that that tech guys prize the most, that that tech guys prize the most, that that tech guys prize the most, which is their uh their businesses and which is their uh their businesses and which is their uh their businesses and their ability to innovate, Democrats are their ability to innovate, Democrats are their ability to innovate, Democrats are going after that. And the thing that going after that. And the thing that going after that. And the thing that Republicans prize the most, which is Republicans prize the most, which is Republicans prize the most, which is their country and their land. Well, the their country and their land. Well, the their country and their land. Well, the alliance with China, which is alliance with China, which is alliance with China, which is burgeoning, they're going to go after burgeoning, they're going to go after burgeoning, they're going to go after that. Okay. What are Republicans doing that. Okay. What are Republicans doing that. Okay. What are Republicans doing to blues and to tech? Well, to tech, to blues and to tech? Well, to tech, to blues and to tech? Well, to tech, they're going after talent. They're they're going after talent. They're they're going after talent. They're stopping tech guys from assembling stopping tech guys from assembling stopping tech guys from assembling talent, which is their other lifeblood, talent, which is their other lifeblood, talent, which is their other lifeblood, right? You can't bring talent from right? You can't bring talent from right? You can't bring talent from India. You can't bring talent from China India. You can't bring talent from China India. You can't bring talent from China anywhere near as easily as you could. anywhere near as easily as you could. anywhere near as easily as you could. Right? All these visas are getting cut Right? All these visas are getting cut Right? All these visas are getting cut off. And I understand why, but but off. And I understand why, but but off. And I understand why, but but they're doing it. And what are they they're doing it. And what are they they're doing it. And what are they doing to to to Democrats? They're going doing to to to Democrats? They're going doing to to to Democrats? They're going after the thing that Democrats love the after the thing that Democrats love the after the thing that Democrats love the most, which is their global empire. All most, which is their global empire. All most, which is their global empire. All the all like USAD or uh you know the the all like USAD or uh you know the the all like USAD or uh you know the NOS's, the universities, all the NOS's, the universities, all the NOS's, the universities, all the diplomatic relationships, the prestige diplomatic relationships, the prestige diplomatic relationships, the prestige abroad. That was the thing that Democrat abroad. That was the thing that Democrat abroad. That was the thing that Democrat diplomats built over generations. diplomats built over generations. diplomats built over generations. Republicans are just gleefully like the Republicans are just gleefully like the Republicans are just gleefully like the UN, they're cutting the budget. All UN, they're cutting the budget. All UN, they're cutting the budget. All these things that Democrats care about these things that Democrats care about these things that Democrats care about the most. They're dismantling that, the most. They're dismantling that, the most. They're dismantling that, right? And then finally, what are um right? And then finally, what are um right? And then finally, what are um tech guys doing? Well, with AI, that's a tech guys doing? Well, with AI, that's a tech guys doing? Well, with AI, that's a jobs tax on Democrats, right? And then jobs tax on Democrats, right? And then jobs tax on Democrats, right? And then they're also decentralizing overseas and they're also decentralizing overseas and they're also decentralizing overseas and they're opening, you know, offices in they're opening, you know, offices in they're opening, you know, offices in other countries because they need the other countries because they need the other countries because they need the talent there, right? So, all three talent there, right? So, all three talent there, right? So, all three groups, red America, blue America, and groups, red America, blue America, and groups, red America, blue America, and tech America are all fighting each tech America are all fighting each tech America are all fighting each other. And I think what happens is blue other. And I think what happens is blue other. And I think what happens is blue America takes like the West Coast states America takes like the West Coast states America takes like the West Coast states and Canada and the Great Lakes and so and Canada and the Great Lakes and so and Canada and the Great Lakes and so on. Red America takes like the Latin on. Red America takes like the Latin on. Red America takes like the Latin America, right? Red America pivots to I America, right? Red America pivots to I America, right? Red America pivots to I do think about what you said earlier do think about what you said earlier do think about what you said earlier Kelly Malay uh Hernando Dodto like the Kelly Malay uh Hernando Dodto like the Kelly Malay uh Hernando Dodto like the understanding of American understanding of American understanding of American is actually going to change because is actually going to change because is actually going to change because it'll be like um Democrat American and it'll be like um Democrat American and it'll be like um Democrat American and Republican American and the Republican Republican American and the Republican Republican American and the Republican Americans are going to lean like Beck Americans are going to lean like Beck Americans are going to lean like Beck Kelly is much closer to Dantis than Kelly is much closer to Dantis than Kelly is much closer to Dantis than Elizabeth Warren Elizabeth Warren Elizabeth Warren right so the term American puts right so the term American puts right so the term American puts Elusborne and Dantis in the same group Elusborne and Dantis in the same group Elusborne and Dantis in the same group and Belli in the out group, and Belli in the out group, and Belli in the out group, >> right? Yeah. Interesting. >> right? Yeah. Interesting. >> right? Yeah. Interesting. >> But the actual correct grouping of >> But the actual correct grouping of >> But the actual correct grouping of conservative or libertarian or whatever conservative or libertarian or whatever conservative or libertarian or whatever you want, right? Latin American has the you want, right? Latin American has the you want, right? Latin American has the Texas, Miami, Sunb Belt-ish kind of Texas, Miami, Sunb Belt-ish kind of Texas, Miami, Sunb Belt-ish kind of region grouping with Belli and Malay and region grouping with Belli and Malay and region grouping with Belli and Malay and Hernando Dotto and that feels like the Hernando Dotto and that feels like the Hernando Dotto and that feels like the actual ideological grouping whereas the actual ideological grouping whereas the actual ideological grouping whereas the cold and rainy, you know, Northwest and cold and rainy, you know, Northwest and cold and rainy, you know, Northwest and so on that goes to the other the other so on that goes to the other the other so on that goes to the other the other side, right? side, right? side, right? >> All right, Bology. Now that we >> All right, Bology. Now that we >> All right, Bology. Now that we understand all of that madness, what are understand all of that madness, what are understand all of that madness, what are the smartest people in the world doing the smartest people in the world doing the smartest people in the world doing about it? about it? about it? >> I would say so I think you can take an >> I would say so I think you can take an >> I would say so I think you can take an eye of the hurricane strategy and the eye of the hurricane strategy and the eye of the hurricane strategy and the eye of the hurricane strategy would be eye of the hurricane strategy would be eye of the hurricane strategy would be go to Texas, go to Florida, right? Um go to Texas, go to Florida, right? Um go to Texas, go to Florida, right? Um and uh and then you can also go to, you and uh and then you can also go to, you and uh and then you can also go to, you know, like many Americans have ancestry know, like many Americans have ancestry know, like many Americans have ancestry in Europe, like they're Polish American, in Europe, like they're Polish American, in Europe, like they're Polish American, you can get a Polish passport, right? So you can get a Polish passport, right? So you can get a Polish passport, right? So you can take an eye of the hurricane you can take an eye of the hurricane you can take an eye of the hurricane strategy or you can get as far away as strategy or you can get as far away as strategy or you can get as far away as possible. liquidate, immigrate, possible. liquidate, immigrate, possible. liquidate, immigrate, accelerate. And I think actually accelerate. And I think actually accelerate. And I think actually location is much more important than location is much more important than location is much more important than allocation. I think you want to get to allocation. I think you want to get to allocation. I think you want to get to Dalio also thinks this. I think you want Dalio also thinks this. I think you want Dalio also thinks this. I think you want to get to a place where you trust the to get to a place where you trust the to get to a place where you trust the people around you and there's like a people around you and there's like a people around you and there's like a community there. Um and and I think community there. Um and and I think community there. Um and and I think that's what you should do. that's what you should do. that's what you should do. >> And do you have you've talked about >> And do you have you've talked about >> And do you have you've talked about ascending and descending locations? Do ascending and descending locations? Do ascending and descending locations? Do you have like a rough swag of where in you have like a rough swag of where in you have like a rough swag of where in the world is on the way up, where in the the world is on the way up, where in the the world is on the way up, where in the world is on the way down? world is on the way down? world is on the way down? I think um within the US I'd say Texas, I think um within the US I'd say Texas, I think um within the US I'd say Texas, Miami are on the way up relatively, Miami are on the way up relatively, Miami are on the way up relatively, right? Like you can actually build right? Like you can actually build right? Like you can actually build things there. So that's there. I think things there. So that's there. I think things there. So that's there. I think El Salvador is really interesting. It's El Salvador is really interesting. It's El Salvador is really interesting. It's a startup state. Um I think you know a startup state. Um I think you know a startup state. Um I think you know Southeast Asia, India are are going up. Southeast Asia, India are are going up. Southeast Asia, India are are going up. I think Eastern Europe obviously it's I think Eastern Europe obviously it's I think Eastern Europe obviously it's got the Ukraine war there but if that got the Ukraine war there but if that got the Ukraine war there but if that dies down like I think the vice states dies down like I think the vice states dies down like I think the vice states Poland, Hungary are doing quite well. I Poland, Hungary are doing quite well. I Poland, Hungary are doing quite well. I would have said Dubai and uh you know would have said Dubai and uh you know would have said Dubai and uh you know the Gulf but of course this Iran war has the Gulf but of course this Iran war has the Gulf but of course this Iran war has blown that up for a while right s for blown that up for a while right s for blown that up for a while right s for closed off um and so the tricky part is closed off um and so the tricky part is closed off um and so the tricky part is there's no guaranteed safe haven you there's no guaranteed safe haven you there's no guaranteed safe haven you know you have to be like nimble and know you have to be like nimble and know you have to be like nimble and agile but I' those are the places that I agile but I' those are the places that I agile but I' those are the places that I think one would would think about think one would would think about think one would would think about certainly um those places that were off certainly um those places that were off certainly um those places that were off the map in the 20th century are getting the map in the 20th century are getting the map in the 20th century are getting on the map in the 21st okay I got to on the map in the 21st okay I got to on the map in the 21st okay I got to jump let's talk more jump let's talk more jump let's talk more >> thank you so much man it was an absolute >> thank you so much man it was an absolute >> thank you so much man it was an absolute pleasure appreciate Take care. All pleasure appreciate Take care. All pleasure appreciate Take care. All right. Byebye. right. Byebye. right. Byebye. >> If you like this conversation, check out >> If you like this conversation, check out >> If you like this conversation, check out this episode to learn more. this episode to learn more. this episode to learn more. >> Iranians have said that their goal is to >> Iranians have said that their goal is to >> Iranians have said that their goal is to spike the price of oil to $200 a barrel. spike the price of oil to $200 a barrel. spike the price of oil to $200 a barrel. If Trump were to leave the Middle East, If Trump were to leave the Middle East, If Trump were to leave the Middle East, basically the American empire would basically the American empire would basically the American empire would collapse. It's very risky to use collapse. It's very risky to use collapse. It's very risky to use military force to resolve an economic military force to resolve an economic military force to resolve an economic issue. It is