1 00:00:00,080 --> 00:00:02,080 All right, well, David, welcome to Emerson podcast. 2 00:00:02,160 --> 00:00:06,000 I think now we're at 2 or 4, maybe 3 or 4 because I do it to 3 00:00:06,040 --> 00:00:08,280 actually I was actually on all in a while back. 4 00:00:08,280 --> 00:00:10,880 That's right. And sax and I have been friends 5 00:00:10,880 --> 00:00:12,920 for a while and sax sometimes quits me and I sometimes quit 6 00:00:12,920 --> 00:00:14,800 sax. But things your is your first 7 00:00:14,800 --> 00:00:16,720 visit out of Singapore, No? It's my first visit to 8 00:00:16,760 --> 00:00:18,480 Singapore. What are your reactions? 9 00:00:18,480 --> 00:00:21,920 What do you think? I mean, what was someone told me 10 00:00:21,920 --> 00:00:26,360 a statistic that 4000 family offices have been opened in like 11 00:00:26,360 --> 00:00:28,680 the last 10 years or so in Singapore? 12 00:00:28,680 --> 00:00:29,480 Underestimate. Probably. 13 00:00:29,480 --> 00:00:30,600 Yes, right. Incredible. 14 00:00:30,680 --> 00:00:33,720 And so I've met with a number of folks from that community. 15 00:00:33,720 --> 00:00:37,080 And then obviously there's a lot of business in the region that 16 00:00:37,080 --> 00:00:40,280 operates from here, capital in the region that moved through 17 00:00:40,280 --> 00:00:43,280 here. Beautiful city, wonderful 18 00:00:43,280 --> 00:00:46,480 people, amazing place so. And it's, it's very well run, 19 00:00:46,480 --> 00:00:48,720 it's near everything. And, you know, and if you saw my 20 00:00:48,720 --> 00:00:50,240 tweet on this, maybe you have some thoughts on this. 21 00:00:50,240 --> 00:00:53,880 So, you know, London has already given up the crown to Dubai. 22 00:00:54,320 --> 00:00:57,760 And I think Tokyo and Hong Kong, the capital of capital in APEC 23 00:00:57,760 --> 00:01:00,720 is now Singapore. And now maybe NYC is succeeded 24 00:01:00,720 --> 00:01:02,760 by Miami. There's like a little Miami 25 00:01:02,760 --> 00:01:05,600 boomlet like a few years ago. And now it's like that was like 26 00:01:05,600 --> 00:01:07,760 the that was like the GPT one. Yeah. 27 00:01:07,840 --> 00:01:09,360 You know, before the. Aspirational. 28 00:01:09,360 --> 00:01:11,600 Miami's Palm Beach. I think everyone would aspire 29 00:01:11,600 --> 00:01:13,800 for Palm Beach. They might settle for Miami. 30 00:01:14,080 --> 00:01:14,720 Sure, sure, sure. Yeah. 31 00:01:14,840 --> 00:01:16,400 You know, you know the specific geography of. 32 00:01:16,400 --> 00:01:18,560 Yeah, I think Palm Beach is a lot like Connecticut. 33 00:01:18,560 --> 00:01:22,320 It's like where the hedge funds actually set up versus New York. 34 00:01:22,840 --> 00:01:24,640 There's there's another reason for everything, which is that 35 00:01:24,880 --> 00:01:29,200 Latin America with now Malay is showing more energy than we 36 00:01:29,200 --> 00:01:31,920 thought, or rather Malay showed staying power. 37 00:01:32,320 --> 00:01:34,120 You say you won in Argentina, right. 38 00:01:34,320 --> 00:01:37,480 So with Malay and BA Kelly, you have essentially potentially a 39 00:01:37,480 --> 00:01:41,480 Latin American capitalist renaissance and a non obvious 40 00:01:41,480 --> 00:01:44,000 thing that I didn't know, you know, Antonio Garcia Martinez, 41 00:01:44,000 --> 00:01:46,200 right? So he made, you know, a post 42 00:01:46,200 --> 00:01:50,440 years ago that that Miami is actually the Latin America or 43 00:01:50,480 --> 00:01:53,640 the Singapore of Latin America. Because if you're doing a deal 44 00:01:53,640 --> 00:01:57,960 between like a, a Mexican guy and someone from Paraguay or 45 00:01:57,960 --> 00:02:00,920 something like that, they will tend to do that deal in Miami 46 00:02:00,920 --> 00:02:03,400 because there's people there who speak Spanish 'cause it was like 47 00:02:03,400 --> 00:02:08,160 a neutral third party location. And because Miami is full of 48 00:02:08,160 --> 00:02:10,759 Cuban immigrants, it can't go too far communist, right? 49 00:02:11,000 --> 00:02:13,400 But because full of Cuban immigrants also can't go too 50 00:02:13,400 --> 00:02:15,440 overboard on on the other side as well, right? 51 00:02:15,800 --> 00:02:19,400 So there's an interesting sort of centrist, muscular, centrist, 52 00:02:19,640 --> 00:02:23,520 good aesthetics kind of thing about Miami, where if one was in 53 00:02:23,520 --> 00:02:25,480 the US, I think that's one of the two or three best places to 54 00:02:25,480 --> 00:02:26,360 be. The other place might be star 55 00:02:26,360 --> 00:02:27,520 based Texas. I know your thoughts. 56 00:02:27,600 --> 00:02:31,320 I think Miami maybe has a little less of the aspirational element 57 00:02:31,440 --> 00:02:33,920 that you might find in other call it communities. 58 00:02:33,920 --> 00:02:37,400 It's got a lifestyle element that probably dominates the 59 00:02:37,400 --> 00:02:39,480 aspirational element has been my experience. 60 00:02:39,680 --> 00:02:43,120 People are just so happy to be there and they're just so happy 61 00:02:43,120 --> 00:02:44,600 to live life. That's the vibe. 62 00:02:44,600 --> 00:02:47,600 It's a little bit of a European vibe, but positive European 63 00:02:47,600 --> 00:02:49,280 vibe. But yes, I, I understand. 64 00:02:49,280 --> 00:02:53,120 And Starbase obviously is the pioneering W, which I think is 65 00:02:53,120 --> 00:02:56,280 what's deeply lacking in the United States right now. 66 00:02:56,280 --> 00:02:59,520 It's more of those moments where you and I talked about this 67 00:02:59,520 --> 00:03:04,040 earlier, but you know the vision of Westworld, you get to go live 68 00:03:04,040 --> 00:03:06,600 in the West. You get to go live that 69 00:03:06,600 --> 00:03:11,400 pioneering life where it is an open landscape, everything is a 70 00:03:11,400 --> 00:03:15,000 potential and your actions control your outcomes. 71 00:03:15,000 --> 00:03:17,800 You have absolute agency, but also absolute accountability and 72 00:03:17,800 --> 00:03:21,840 responsibility that fundamentally has probably been 73 00:03:21,840 --> 00:03:24,880 driven out of the United States to large part at this point. 74 00:03:25,200 --> 00:03:28,720 There's a strong push to try and bring it back and to regrow it. 75 00:03:29,080 --> 00:03:31,840 And there's some great pockets of it thanks to Elon and others 76 00:03:31,840 --> 00:03:34,760 that have forced it to happen. There's some decent governors 77 00:03:34,760 --> 00:03:37,960 that are trying to re enable it. But for the large part, I think, 78 00:03:37,960 --> 00:03:40,440 you know, that moment of the Renaissance is over. 79 00:03:40,440 --> 00:03:42,640 So I do think there's a big question of where is it next? 80 00:03:42,880 --> 00:03:46,120 That's one of the big takeaways I take from visiting your 81 00:03:46,160 --> 00:03:50,400 network school here today is kind of reimagining that that W 82 00:03:50,400 --> 00:03:53,360 that we've all, I think, had these dreams and fantasies 83 00:03:53,360 --> 00:03:55,040 about. Wouldn't it be amazing to go to 84 00:03:55,040 --> 00:03:56,760 those empty towns? Absolutely. 85 00:03:56,760 --> 00:04:00,160 And I think, I think the way I think about it is if you go far 86 00:04:00,160 --> 00:04:04,200 West enough, you actually end up either in the Far East, which is 87 00:04:04,200 --> 00:04:06,720 China or in the cloud which is the Internet. 88 00:04:07,000 --> 00:04:09,960 And that's where I think the two frontiers are now, right? 89 00:04:10,240 --> 00:04:14,920 So, and moreover, the Internet frontier, where is that data? 90 00:04:15,040 --> 00:04:16,680 I can I call that the fractal frontier. 91 00:04:16,959 --> 00:04:20,360 So if you take Starbase and you take network tool and you take 92 00:04:20,360 --> 00:04:22,760 the pop ups that are coming up all around the world and all the 93 00:04:22,760 --> 00:04:25,560 special economic zones, right? The fractal frontier, if you sum 94 00:04:25,560 --> 00:04:27,520 up all the territory of all this place, it's actually quite 95 00:04:27,520 --> 00:04:30,600 large, right? It it may be many, you know, 96 00:04:30,600 --> 00:04:32,720 many square miles. I mean, I mean, there's actually 97 00:04:32,720 --> 00:04:35,240 something called the open zone map that we can put on screen. 98 00:04:35,680 --> 00:04:37,880 The open zone map shows hundreds and hundreds, hundreds of 99 00:04:37,880 --> 00:04:39,600 special economic zones globally, right? 100 00:04:40,120 --> 00:04:45,800 And the the thing about that is you get a sense of how many 101 00:04:45,800 --> 00:04:48,080 countries want something like that right here. 102 00:04:48,800 --> 00:04:50,720 Let me pull it up. Wow, right. 103 00:04:51,080 --> 00:04:53,040 Why are there so many in the United States? 104 00:04:53,040 --> 00:04:54,720 Where is that? That's where I'd like to under. 105 00:04:54,720 --> 00:04:56,320 That's right. So these are like what are those 106 00:04:56,320 --> 00:05:01,840 kinds of like this is the office of Joint Economic development. 107 00:05:01,840 --> 00:05:03,880 They should like various offices, they take an expansive 108 00:05:03,880 --> 00:05:05,520 view of what a zone is in this map, right. 109 00:05:05,840 --> 00:05:08,480 But certainly in Central Asia, like China's like suffused with 110 00:05:08,480 --> 00:05:11,200 them, right, Where they have, you know, drone zones, 111 00:05:11,200 --> 00:05:13,000 manufacturing zones, this zone, that zone. 112 00:05:13,520 --> 00:05:15,840 Sorry, who defines these? There's a, there's a group 113 00:05:15,840 --> 00:05:18,520 called the open zone, open zone map group. 114 00:05:18,600 --> 00:05:22,040 OK. But I think that you can like 115 00:05:22,040 --> 00:05:24,920 when you have this perspective, if you take a list of all 116 00:05:24,920 --> 00:05:28,000 special economic zones, you take a list of all of the sort of 117 00:05:28,040 --> 00:05:31,440 ghost cities or startup cities. You take a list of all of the 118 00:05:32,080 --> 00:05:34,600 abandoned houses in Japan. You take a list of all the 119 00:05:34,960 --> 00:05:36,600 actually the towns for sale in America. 120 00:05:36,600 --> 00:05:38,080 Have you seen that? Yeah. 121 00:05:38,080 --> 00:05:40,920 So you take all of that. That's the fractal frontier. 122 00:05:41,320 --> 00:05:44,320 And the tricky part is moving one person out of time has been 123 00:05:44,320 --> 00:05:47,600 hard. If you move 100 and we can 124 00:05:47,600 --> 00:05:49,680 coordinate with the Internet, then we can actually go and do 125 00:05:49,680 --> 00:05:51,400 that. So I think we can it just like 126 00:05:51,400 --> 00:05:54,560 Bitcoin, the key was going decentralized and then we can do 127 00:05:54,560 --> 00:05:56,120 it. Yeah, yeah, because I think 128 00:05:56,120 --> 00:05:58,400 everything else is the opposite. Yes. 129 00:05:58,880 --> 00:06:05,320 Like the the absence of that environment is unfortunately 130 00:06:05,560 --> 00:06:08,440 gravity. Well, yes, which is very 131 00:06:08,440 --> 00:06:11,120 difficult to escape from you. Know it's funny you. 132 00:06:11,120 --> 00:06:13,360 Say, when I say escape, I mean productivity. 133 00:06:13,360 --> 00:06:15,240 Escape velocity, right? Escape Velocity. 134 00:06:15,240 --> 00:06:16,920 Dr. Productivity. It's funny you see this because 135 00:06:16,920 --> 00:06:20,640 actually a lot of statesman in America understood that the 136 00:06:20,640 --> 00:06:23,240 frontier was actually the main thing that was keeping America 137 00:06:23,240 --> 00:06:24,360 going. Like Frederick Jackson's 138 00:06:24,360 --> 00:06:27,680 Turner's like frontier thesis that the closing of the frontier 139 00:06:27,680 --> 00:06:30,400 in 1890 was like this very important before and after 140 00:06:30,400 --> 00:06:32,240 moment. And in fact the four closed. 141 00:06:32,520 --> 00:06:35,240 There were guys who wrote something like, you know, it is 142 00:06:35,240 --> 00:06:38,200 because a frontier exists that even if someone's dissatisfied 143 00:06:38,200 --> 00:06:41,320 with their lot, they can always be told, go West and, you know, 144 00:06:41,320 --> 00:06:43,240 you've got empty land. It's like having a domain name, 145 00:06:43,280 --> 00:06:45,280 right? And actually, the cause of 146 00:06:45,280 --> 00:06:48,800 frontier closed that started trade unions and communism 147 00:06:48,800 --> 00:06:51,560 because it was like a steel cage match for the world. 148 00:06:51,560 --> 00:06:53,440 Everyone's boxed in. They couldn't go and just do 149 00:06:53,440 --> 00:06:55,720 their own thing. In 1991, with the Internet, the 150 00:06:55,720 --> 00:06:58,000 frontier reopened. No, I think that's possible, 151 00:06:59,120 --> 00:07:01,280 unfortunately. I think there's governing rules 152 00:07:01,280 --> 00:07:05,240 that exist that then, you know, we thought the open Internet was 153 00:07:05,240 --> 00:07:08,280 that moment. We always talked about the open 154 00:07:08,280 --> 00:07:11,320 Internet in, you know, the early days. 155 00:07:11,320 --> 00:07:16,440 It was going to reinvent how governing bodies have reached 156 00:07:16,440 --> 00:07:19,240 how they operate. And I think it wasn't. 157 00:07:19,520 --> 00:07:22,880 And you're obviously the crypto person, but I don't know if that 158 00:07:22,880 --> 00:07:25,600 promise in the natural evolution of the open Internet and then 159 00:07:25,800 --> 00:07:28,040 what I would say it's probably much more of a controlled 160 00:07:28,040 --> 00:07:31,520 Internet nowadays has really allowed that it's we'll. 161 00:07:32,440 --> 00:07:33,200 Go ahead for research. Yeah. 162 00:07:33,200 --> 00:07:34,560 No, no. I mean, I think it's a function 163 00:07:34,560 --> 00:07:42,440 of like the Internet became more of a pipe than a place, and the 164 00:07:42,440 --> 00:07:45,680 place remained the traditional governing structures. 165 00:07:45,680 --> 00:07:49,120 So I, so this is what I call like network versus state, 166 00:07:49,280 --> 00:07:51,360 right? And my view at least is the 167 00:07:51,360 --> 00:07:54,200 state has won in the East, but the network is winning in the 168 00:07:54,200 --> 00:07:56,160 West. Like that's to say, like the 169 00:07:56,160 --> 00:07:59,280 Chinese state is definitely dominant over the Chinese 170 00:07:59,280 --> 00:08:01,080 network. But I actually do think the 171 00:08:01,080 --> 00:08:03,040 American network is stronger than the American state. 172 00:08:03,040 --> 00:08:06,000 And the reason I say that is, for example, politicians who are 173 00:08:06,000 --> 00:08:09,080 popular on social media can now go to the left and to the right 174 00:08:09,120 --> 00:08:13,360 of their respective parties. Crypto defeated the forces that 175 00:08:13,360 --> 00:08:16,560 were trying to stop it burn air, even be I'll be at taking 176 00:08:16,560 --> 00:08:19,000 casualties like you know. Got velocity? 177 00:08:19,120 --> 00:08:21,000 That's right even and to be clear, it's like, you know, 178 00:08:21,000 --> 00:08:22,680 Saving Private Ryan, the opening scene, right? 179 00:08:23,000 --> 00:08:26,960 You you watch that movie and you know that the allies are going 180 00:08:26,960 --> 00:08:29,280 to win, but they do take casualties right, right. 181 00:08:29,600 --> 00:08:32,600 So I know that tech is going to win and we took a casualty like 182 00:08:32,600 --> 00:08:36,679 Travis Kalanick, you know, got, you know, attacked by by the 183 00:08:36,679 --> 00:08:39,360 journos in 2017. Travis did nothing wrong. 184 00:08:39,360 --> 00:08:41,960 Travis a good man and actually was just on all in I think 185 00:08:41,960 --> 00:08:43,400 recently a little while. Ago, right? 186 00:08:43,400 --> 00:08:45,160 Yeah, he's come on a few times. That's great. 187 00:08:45,360 --> 00:08:47,160 Yeah. Basically I think that whole 188 00:08:47,160 --> 00:08:50,800 thing was just something which was the media attacking, you 189 00:08:50,800 --> 00:08:53,320 know, essentially like a like a tribal enemy basically. 190 00:08:53,720 --> 00:08:57,640 And so, but nevertheless, Uber still won, right, Right. 191 00:08:57,640 --> 00:09:00,760 Like Uber, Uber might have been a trillion dollar company had 192 00:09:00,760 --> 00:09:02,040 Travis remained there, it's true. 193 00:09:02,320 --> 00:09:04,640 But ride sharing one, they couldn't stop that, right? 194 00:09:04,880 --> 00:09:07,200 So let me ask you this. Yeah, because I I think that 195 00:09:07,200 --> 00:09:10,760 part of what made Uber win is it it it was a better product. 196 00:09:11,000 --> 00:09:15,120 It was cheaper, it was faster. But there's the gravity wells. 197 00:09:15,240 --> 00:09:17,760 The gravity well in this case would be a union taxi 198 00:09:17,760 --> 00:09:20,080 medallions, the governing structure of New York. 199 00:09:20,760 --> 00:09:23,920 Do you think Uber could be successful if it launched today, 200 00:09:24,120 --> 00:09:27,040 given the governance we see in cities in the US today? 201 00:09:27,400 --> 00:09:30,160 And how much perhaps more difficult they might make it 202 00:09:30,160 --> 00:09:31,840 today. Well, look at Waymo, look at 203 00:09:31,840 --> 00:09:34,400 Tesla robotaxi, right? Like those are kind of 204 00:09:34,560 --> 00:09:36,680 comparable. Uber paved the way. 205 00:09:36,680 --> 00:09:39,320 I mean, don't you think that like things have gotten tougher 206 00:09:39,320 --> 00:09:42,040 to do business in these cities? It's gotten much more 207 00:09:42,040 --> 00:09:43,760 controlled, It's become less open. 208 00:09:43,760 --> 00:09:45,360 It's. Both at the same time, right? 209 00:09:45,360 --> 00:09:51,680 Like basically they are fighting harder, but net net, if you net 210 00:09:51,680 --> 00:09:55,440 it out and you ask when the dust is settled, like 2 years later, 211 00:09:55,440 --> 00:09:58,240 three years later, four years later, I expect the network to 212 00:09:58,240 --> 00:10:01,200 triumph over the state in the West and expect the state like 213 00:10:01,280 --> 00:10:06,440 by contrast, in China, Alibaba was genuinely like seized right 214 00:10:06,440 --> 00:10:10,320 by the government, right wings clipped tech defeated over there 215 00:10:10,320 --> 00:10:16,280 right in, in in the West, though, Bitcoin beat like BTC 216 00:10:16,280 --> 00:10:19,440 was greater than NYT, right? Bitcoin was stronger, NYT 217 00:10:19,680 --> 00:10:21,000 launched all these attacks and so on. 218 00:10:21,480 --> 00:10:24,280 And so I think the final sort of grudge match, you know, like a, 219 00:10:25,880 --> 00:10:28,680 the final four and like a, you know, NCAA final four and what 220 00:10:28,680 --> 00:10:30,560 have you, right? So as we go up the brackets, 221 00:10:30,840 --> 00:10:35,600 right, like it's CCP versus BTC is like the China versus 222 00:10:35,600 --> 00:10:37,600 Internet is where it's going to be eventually, right? 223 00:10:38,080 --> 00:10:41,840 I, I think what you're seeing, which is true, is that these 224 00:10:41,840 --> 00:10:44,920 state governments are getting meaner and nastier. 225 00:10:45,120 --> 00:10:46,800 They're also getting Dumber, right? 226 00:10:47,200 --> 00:10:50,120 Like, for example, when they're saying like millionaires and 227 00:10:50,120 --> 00:10:53,520 billionaires, it's like saying meters in kilometers, it's like 228 00:10:53,520 --> 00:10:56,120 1000 X difference, right? It's like a small thing, but 229 00:10:56,120 --> 00:10:59,280 there's there's so few of them who have any numerical acumen 230 00:11:00,160 --> 00:11:02,880 and because of that they can they can do it on I mean, how 231 00:11:02,880 --> 00:11:04,480 does. It it's like saying meters and 232 00:11:04,480 --> 00:11:06,840 kilometers when you're supposed to be talking about gallons and 233 00:11:06,840 --> 00:11:09,240 oz. Yeah, that besides the point. 234 00:11:09,240 --> 00:11:10,600 That's right, like a billionaire's, like a 235 00:11:10,600 --> 00:11:12,200 billionaire's completely different from a millionaire. 236 00:11:12,200 --> 00:11:13,520 Right. Are you talking about cronyism 237 00:11:13,520 --> 00:11:14,920 versus? Right. 238 00:11:15,160 --> 00:11:16,000 Yeah, exactly. That's right. 239 00:11:16,000 --> 00:11:18,120 That that's the right enemy, wrong enemy, cut of things. 240 00:11:18,120 --> 00:11:19,880 That's right. And in fact, actually another 241 00:11:19,960 --> 00:11:22,760 reframe on it is many of them are political billionaires. 242 00:11:22,800 --> 00:11:25,640 Did, did we talk about this? It's like take, take the budget 243 00:11:25,640 --> 00:11:28,640 of San Francisco for example, last I look is about 13, you 244 00:11:28,640 --> 00:11:31,800 know, 13 billion + a year. So you take the supervisors plus 245 00:11:31,800 --> 00:11:33,960 the mayor and divide the budget into this. 246 00:11:34,200 --> 00:11:36,840 They're basically each allocating a billion in cash per 247 00:11:36,840 --> 00:11:39,000 year per person. They're political billionaires. 248 00:11:39,360 --> 00:11:42,280 Now the the thing about this, by the way, they're actually much, 249 00:11:42,280 --> 00:11:46,000 much, much wealthier than a typical market billionaire 250 00:11:46,000 --> 00:11:48,520 because a market billionaire has 1 billion net worth over their 251 00:11:48,520 --> 00:11:51,280 entire life, of which maybe they can liquidate 10,000,050 252 00:11:51,280 --> 00:11:53,360 billion, right? But a political billionaire is 253 00:11:53,360 --> 00:11:55,920 out allocating a billion in cash per year. 254 00:11:56,120 --> 00:12:02,120 So over 20-30 years they are like 10 to 100 X the allocation 255 00:12:02,120 --> 00:12:04,320 of capital. The degree of influence. 256 00:12:04,560 --> 00:12:05,920 Yeah, that's right. So the. 257 00:12:05,920 --> 00:12:07,920 Political, which ultimately could be the way you could 258 00:12:07,920 --> 00:12:11,760 measure the value of the capital is how much can you affect the 259 00:12:11,760 --> 00:12:13,720 things around you to realize the things you want. 260 00:12:14,120 --> 00:12:16,320 Which by the way, is why I always talk about the state 261 00:12:16,320 --> 00:12:19,480 being an Organism on its own, competing with the other 262 00:12:19,480 --> 00:12:22,720 organisms, the other organizations which are 263 00:12:22,720 --> 00:12:26,400 aggregates of people that self assembled and said let's form an 264 00:12:26,400 --> 00:12:31,160 organization to do this thing. The state, local, state level, 265 00:12:31,160 --> 00:12:35,320 federal, whatever national are their own organization that 266 00:12:35,320 --> 00:12:37,960 fundamentally have their own growth state in a system just 267 00:12:37,960 --> 00:12:41,080 like biology where they are trying to consume and they are 268 00:12:41,080 --> 00:12:42,760 trying to get bigger. And they are because the 269 00:12:42,760 --> 00:12:45,440 individuals have the same objective as the individuals do 270 00:12:45,440 --> 00:12:47,600 in any other organization, which is to maximize influence. 271 00:12:47,600 --> 00:12:49,640 That's right. And actually on this point, I 272 00:12:49,640 --> 00:12:52,600 think this is really like, this is a deep insight for me at 273 00:12:52,600 --> 00:12:55,160 least the state is their startup. 274 00:12:55,680 --> 00:12:58,600 That's right, right. Like for all these, you know, 275 00:12:58,600 --> 00:13:01,800 nonprofits and I was, you know, this is A1 liner, I'll probably 276 00:13:01,800 --> 00:13:04,440 treat this nonprofit equals anti profit equals communists there 277 00:13:04,560 --> 00:13:05,760 you can get there in 2 steps, right? 278 00:13:06,080 --> 00:13:08,520 So for all these, the nonprofits are really more like anarcho 279 00:13:08,520 --> 00:13:12,080 communists, but they still like the communists get their funding 280 00:13:12,080 --> 00:13:13,920 from the state. The difference is they're not 281 00:13:13,920 --> 00:13:15,480 all directly reporting to the state. 282 00:13:15,640 --> 00:13:16,960 They're all just given money by the state. 283 00:13:16,960 --> 00:13:19,440 And then they do all these crazy things like the managed alcohol 284 00:13:19,440 --> 00:13:22,280 program that you, you want to talk about that like this crazy 285 00:13:22,280 --> 00:13:24,200 kind of thing. Yeah, I mean, I talked about it 286 00:13:24,200 --> 00:13:26,240 on my show, but you and you and I were talking about it earlier 287 00:13:26,240 --> 00:13:29,560 that the city of San Francisco has a managed alcohol program 288 00:13:29,560 --> 00:13:32,040 where they will give out beer and vodka to to homeless 289 00:13:32,040 --> 00:13:34,880 Alcoholics that they can come and get any time of the day, 24 290 00:13:34,880 --> 00:13:37,800 hours in hotel lobbies where they walk in. 291 00:13:38,440 --> 00:13:42,120 They are given either they can chew the vodka or beer, they get 292 00:13:42,120 --> 00:13:45,080 a shot, they get a beer, once they've consumed it, they can 293 00:13:45,080 --> 00:13:46,480 get another one. And they can just keep doing 294 00:13:46,480 --> 00:13:49,760 that under the premise that they're more the less likely to 295 00:13:49,760 --> 00:13:52,720 go to a hospital if they're under the observation of someone 296 00:13:52,720 --> 00:13:55,760 observing them get drunk rather than running off and having 297 00:13:55,760 --> 00:13:58,080 uncontrolled alcohol. Which at the end of the day, 298 00:13:58,080 --> 00:14:00,400 there are reports that they've given out seventeen shots of 299 00:14:00,400 --> 00:14:02,720 vodka in a single night, right to a homeless person. 300 00:14:03,000 --> 00:14:05,560 And this is like a 5 to $10 million a year program for the 301 00:14:05,560 --> 00:14:08,440 city of San Francisco. I pulled all the 490 forms for 302 00:14:08,440 --> 00:14:10,600 those nonprofits and tracked down where all the funding went. 303 00:14:10,800 --> 00:14:13,920 And it's basically a network of NGOs or nonprofits in the city 304 00:14:14,160 --> 00:14:16,520 where people that work there are making, you know, pretty decent 305 00:14:16,520 --> 00:14:20,480 wages doing this as a business, Which goes back to the point 306 00:14:20,480 --> 00:14:23,160 this is another. And, and it doesn't mean to be 307 00:14:23,160 --> 00:14:25,360 negative about all nonprofits, just to be clear, because I 308 00:14:25,360 --> 00:14:27,680 support some nonprofits that have good work. 309 00:14:28,440 --> 00:14:31,280 So I don't like the label of the the nonprofit being bad. 310 00:14:31,280 --> 00:14:34,160 But there are structures, organizations that have 311 00:14:34,240 --> 00:14:38,080 assembled that have identified a way to get capital and to then 312 00:14:38,120 --> 00:14:40,040 use that capital for their own benefit. 313 00:14:40,080 --> 00:14:41,400 And yeah. No. 314 00:14:41,440 --> 00:14:43,760 And I think that's what we see like the way I think about 315 00:14:44,000 --> 00:14:50,520 systems are what are the organizations, the components of 316 00:14:50,520 --> 00:14:55,840 the system, the system that that the system that arises from 317 00:14:55,840 --> 00:14:59,360 capital, which is a a measure ultimately of influence and 318 00:14:59,360 --> 00:15:02,920 access to assets realizes all these different organizations. 319 00:15:02,920 --> 00:15:05,080 You can create a school, you can create a state government, you 320 00:15:05,080 --> 00:15:08,160 can create a little NGO. We can create a club. 321 00:15:08,440 --> 00:15:11,280 We can also create a business, a nightclub, a restaurant or an 322 00:15:11,280 --> 00:15:13,760 international business. And so these organizations are 323 00:15:13,760 --> 00:15:15,880 these assemblies that are basically competing in an 324 00:15:15,880 --> 00:15:17,560 environment to try and consume capital. 325 00:15:17,920 --> 00:15:23,560 So at the end of the day, the state organizes itself such that 326 00:15:23,560 --> 00:15:25,760 it will always end up wanting to accumulate more capital because 327 00:15:25,760 --> 00:15:28,880 it's distributing itself where every individual in the system 328 00:15:28,880 --> 00:15:31,840 has a benefit if they can get access to that distribution. 329 00:15:31,880 --> 00:15:33,040 That's right. So that's why the state 330 00:15:33,040 --> 00:15:36,000 ultimately always becomes so big. 331 00:15:36,000 --> 00:15:38,960 I think my measure is that in the United States today, it's 332 00:15:38,960 --> 00:15:41,440 probably the case that half the population, more than half the 333 00:15:41,440 --> 00:15:45,760 population are earning the majority of their income, 334 00:15:46,840 --> 00:15:51,120 whether it's retirement income or earned income from a federal, 335 00:15:51,120 --> 00:15:54,800 state or local government or a government contractor or 336 00:15:54,800 --> 00:15:58,720 retirement check or some other sort of benefit pension or 337 00:15:58,720 --> 00:16:01,040 insurance program that's supporting their their business. 338 00:16:01,280 --> 00:16:03,480 So when you add that all up, it's the majority of Americans 339 00:16:03,480 --> 00:16:04,840 now. And that's when I think you 340 00:16:04,840 --> 00:16:07,720 crossed the point of no return or at that point, the state has 341 00:16:07,720 --> 00:16:11,920 now consumed everything because everyone has every incentive to 342 00:16:11,920 --> 00:16:15,440 not have it stop growing. Whereas before you have natural 343 00:16:15,440 --> 00:16:18,200 market forces with these other organizations that are competing 344 00:16:18,520 --> 00:16:20,680 and they're saying, wait, that's not fair that the state has 345 00:16:20,680 --> 00:16:23,080 this, you know, outsize influence. 346 00:16:23,080 --> 00:16:24,600 But once it crosses that threshold. 347 00:16:24,720 --> 00:16:27,560 You're absolutely right, by the way, that there are some good 348 00:16:27,560 --> 00:16:30,240 nonprofits. It's a little bit like people 349 00:16:30,240 --> 00:16:34,800 can understand, for example, that there are good priests, but 350 00:16:34,800 --> 00:16:37,280 there's also like evil priests that will use the good 351 00:16:37,280 --> 00:16:39,000 reputation of priests to do evil, right? 352 00:16:39,480 --> 00:16:42,400 And, you know, one of the things that has certainly happened in 353 00:16:42,400 --> 00:16:46,400 the USII don't know even what fraction of nonprofits are good 354 00:16:46,400 --> 00:16:48,880 versus evil. But I do think that in San 355 00:16:48,880 --> 00:16:51,960 Francisco, the homeless industrial complex budgets are 356 00:16:51,960 --> 00:16:55,080 up and to the right. You know, in 2020, past like 1.1 357 00:16:55,080 --> 00:16:57,760 billion a year, cash as a homeless population goes up. 358 00:16:57,760 --> 00:16:59,040 Isn't that crazy? No. 359 00:16:59,280 --> 00:17:01,320 No, the whole thing is just. It's so obvious. 360 00:17:01,720 --> 00:17:06,040 The more money you distribute through this network, the the 361 00:17:06,040 --> 00:17:08,400 more the homeless population will swell. 362 00:17:08,400 --> 00:17:09,760 Exactly. And the less you're going to 363 00:17:09,760 --> 00:17:10,560 solve. That's right. 364 00:17:10,599 --> 00:17:13,400 There's no natural market force to solve the problem in that 365 00:17:13,400 --> 00:17:14,240 sense. That's right. 366 00:17:14,440 --> 00:17:14,960 It's. Yeah. 367 00:17:15,040 --> 00:17:17,640 So these guys are the feed the pigeon society in a sense. 368 00:17:17,760 --> 00:17:20,440 I I call them they're they're because all look at all these 369 00:17:20,440 --> 00:17:22,119 pigeons. We need to feed more pigeons, 370 00:17:22,119 --> 00:17:23,760 right? But really it's even worse than 371 00:17:23,760 --> 00:17:25,839 that because they're Democrat drug dealers. 372 00:17:25,839 --> 00:17:28,600 Let me explain. They are securing the real 373 00:17:28,600 --> 00:17:31,600 estate, the quote safe injection sites, they're handling the 374 00:17:31,600 --> 00:17:33,520 supply chain, which is handing out the syringes. 375 00:17:33,840 --> 00:17:36,680 They're doing all the legal work with the various legal clinics. 376 00:17:37,080 --> 00:17:39,120 They're basically doing, they're putting up the billboards, which 377 00:17:39,120 --> 00:17:41,280 are like the no overdose billboards that say snort or 378 00:17:41,280 --> 00:17:42,880 smoke crack. Literally billboards that say to 379 00:17:42,880 --> 00:17:46,120 snort or smoke crack. We can put that on screen rather 380 00:17:46,120 --> 00:17:49,480 than to they literally tell people to do drugs, right? 381 00:17:50,200 --> 00:17:52,000 And they do all this with the attitude that you mentioned with 382 00:17:52,000 --> 00:17:54,840 the managed alcohol program, which is like a faux wise, oh, 383 00:17:54,840 --> 00:17:56,960 boys will be boys. You don't understand. 384 00:17:56,960 --> 00:17:59,360 We can't just tell them to have no alcohol. 385 00:17:59,360 --> 00:18:01,480 We need to, they're going to do it regardless of us. 386 00:18:01,480 --> 00:18:04,040 So let's enable it and do it in a safe amount of this, like the 387 00:18:04,040 --> 00:18:05,640 handing out of Narcan or whatever. 388 00:18:05,640 --> 00:18:07,520 Right. And So what what's really 389 00:18:07,520 --> 00:18:11,680 happening is they are McKinsey for MS13. 390 00:18:12,120 --> 00:18:14,320 Yeah, right. They are doing everything other 391 00:18:14,320 --> 00:18:16,720 than putting the needle in the addict's arm, though. 392 00:18:16,720 --> 00:18:18,960 They're putting the needle right there and they're shooting away 393 00:18:18,960 --> 00:18:21,680 the police and they're letting the drug dealers in and they're 394 00:18:21,680 --> 00:18:23,080 removing the legal consequences for it. 395 00:18:23,080 --> 00:18:26,240 So they're just setting up all the propitious conditions for 396 00:18:26,600 --> 00:18:29,160 massive drug abuse. And their business model 397 00:18:29,160 --> 00:18:32,960 innovation is to not take a cut of the fentanyl transaction, 398 00:18:33,360 --> 00:18:35,960 which is like 10 bucks or something like that, but to take 399 00:18:35,960 --> 00:18:37,920 a cut of the billions for fentanyl prevention. 400 00:18:38,320 --> 00:18:40,680 Because what happens is some homeless addict, and really 401 00:18:40,680 --> 00:18:42,520 they're more addicts and mentally ill than homeless per 402 00:18:42,520 --> 00:18:44,240 SE. To not have a home is not the 403 00:18:44,240 --> 00:18:48,240 same as to be mentally ill or a drug addict and being fed with 404 00:18:48,240 --> 00:18:49,800 drugs by these Democrat drug dealers. 405 00:18:50,160 --> 00:18:52,240 And then what happens is, and because these addicts are the 406 00:18:52,240 --> 00:18:54,440 victims of the nonprofit's, that's the key thing, they're 407 00:18:54,440 --> 00:18:56,360 abusing them. It's like munch and house 408 00:18:56,360 --> 00:18:59,240 syndrome by proxy, right? Then the addicts go and they're 409 00:18:59,240 --> 00:19:01,040 driven out of their minds by these drugs, drugs, and they go 410 00:19:01,040 --> 00:19:03,320 and smash and attack something. And then what happens? 411 00:19:03,320 --> 00:19:05,720 The victim of that then says, the victim of the victim 412 00:19:05,720 --> 00:19:09,920 basically says, OK, I need to vote to solve the homeless 413 00:19:09,920 --> 00:19:12,120 problem. And in this moment, they vote to 414 00:19:12,120 --> 00:19:14,920 allocate more budget to the Democrat drug dealers that are 415 00:19:14,920 --> 00:19:16,440 causing the homeless problem. This is my point. 416 00:19:16,440 --> 00:19:20,440 So, so the, the mechanism is that the state, the individuals 417 00:19:20,640 --> 00:19:23,200 in the state, which are the politicians or the state 418 00:19:23,200 --> 00:19:27,840 administrators who by the way, I don't think necessarily are all 419 00:19:28,120 --> 00:19:31,280 or necessarily, you know, malintended. 420 00:19:31,480 --> 00:19:35,320 I think in their mind, they think the only tool I have, 421 00:19:35,320 --> 00:19:37,360 because I've only ever had it is a hammer. 422 00:19:37,720 --> 00:19:41,440 And that is the state. So in every and by the way, for 423 00:19:41,480 --> 00:19:44,000 from my perspective, I would trace this back to the New Deal 424 00:19:44,000 --> 00:19:45,240 of the United States. Sure, sure. 425 00:19:45,640 --> 00:19:47,400 Which I think was the turning point for the United States, 426 00:19:47,680 --> 00:19:48,840 which I think we should talk about. 427 00:19:49,200 --> 00:19:53,160 But so, so they're, they raise their hand and they say more, 428 00:19:53,600 --> 00:19:55,440 not less, more. This is also why I think you 429 00:19:55,440 --> 00:19:57,960 reach a moment where socialism becomes runaway in the United 430 00:19:57,960 --> 00:20:01,320 States, which is we're at that moment now, because if socialism 431 00:20:01,320 --> 00:20:04,440 doesn't work in New York, as Mom Donnie has promised, the answer 432 00:20:04,440 --> 00:20:06,680 won't be socialism doesn't work. The answer is we didn't do 433 00:20:06,680 --> 00:20:10,000 enough more. And so in the same sense, the 434 00:20:10,000 --> 00:20:12,080 state representative, whether it's the politician or the 435 00:20:12,080 --> 00:20:13,760 administrator, raises their hand and says more. 436 00:20:14,280 --> 00:20:16,200 Give me more money to solve the homeless problem. 437 00:20:16,400 --> 00:20:18,760 And that feeds the beast. So now that organization is 438 00:20:18,760 --> 00:20:21,680 bigger, it's consuming more capital and it continues to go 439 00:20:21,680 --> 00:20:23,480 in that vein. And then the problem gets 440 00:20:23,480 --> 00:20:25,400 bigger. And I think the same thing has 441 00:20:25,400 --> 00:20:28,800 happened with the cost of housing, the cost of education 442 00:20:29,480 --> 00:20:31,040 and the cost of healthcare in the United States. 443 00:20:31,320 --> 00:20:34,560 Because we made a promise, The state administrator or the state 444 00:20:34,560 --> 00:20:38,560 politician has said since the New Deal, we've developed a, a, 445 00:20:38,600 --> 00:20:42,160 a repeated kind of statement in this country, in the United 446 00:20:42,160 --> 00:20:47,880 States, that we can do more to give you more, Mr. Citizenry and 447 00:20:47,880 --> 00:20:49,680 the citizenry because of the democracy and this is the 448 00:20:49,680 --> 00:20:52,920 natural state of the system and how it evolves, says, great, 449 00:20:52,920 --> 00:20:54,440 that is the answer for my problem. 450 00:20:54,440 --> 00:20:56,800 You, you do more, so I will give you more. 451 00:20:57,000 --> 00:20:59,160 So we set up a Federal Home Loan program. 452 00:20:59,560 --> 00:21:04,080 We set up a federal student loan program, and we set up Medicare, 453 00:21:04,080 --> 00:21:07,640 Medicaid to support healthcare. As each one of those were set 454 00:21:07,640 --> 00:21:09,360 up. The federal government takes 455 00:21:09,360 --> 00:21:13,080 money and funnels it into those programs, and as a result 456 00:21:13,080 --> 00:21:16,040 there's no market check. So in the case of education, the 457 00:21:16,040 --> 00:21:18,920 colleges can charge more every year and the student is free to 458 00:21:18,920 --> 00:21:21,240 just get more loans, and every year the loans go up. 459 00:21:21,240 --> 00:21:24,920 So the college administrator rationalizes I can make more 460 00:21:24,920 --> 00:21:27,160 money by becoming a manager instead of remaining an 461 00:21:27,160 --> 00:21:30,280 individual contributor. My salary will go from 1:30 to 462 00:21:30,280 --> 00:21:32,680 200 if I become a manager and hire four people. 463 00:21:32,920 --> 00:21:37,200 Fast forward 30 years, 10% of staff as administrators to 60% 464 00:21:37,200 --> 00:21:40,360 of staff as administrators. Tuition goes from 30 to 60 K. 465 00:21:40,680 --> 00:21:42,880 And that's because the federal government has unrestricted 466 00:21:42,880 --> 00:21:45,000 underwriting. And if there was a free market, 467 00:21:45,480 --> 00:21:48,800 then a bank would underwrite the loan and the student would have 468 00:21:48,800 --> 00:21:51,880 to prove that they're getting a good degree at a good college 469 00:21:51,880 --> 00:21:54,880 that will make money and that the tuition is reasonable for 470 00:21:54,880 --> 00:21:57,240 the value of what they're going to be able to do afterwards. 471 00:21:57,600 --> 00:21:58,880 And if they don't, the bank will say no. 472 00:21:59,120 --> 00:22:01,680 Then the same happened in the Federal Home Loan program, which 473 00:22:01,680 --> 00:22:03,520 caused housing bubbles. And then the same happened in 474 00:22:03,520 --> 00:22:04,840 healthcare because of Medicare and Medicaid. 475 00:22:05,040 --> 00:22:07,400 And the cost of drugs is largely driven because of the 476 00:22:07,400 --> 00:22:10,040 government's involvement. And then everyone says the state 477 00:22:10,040 --> 00:22:12,480 administrator and the politician, I can solve that 478 00:22:12,480 --> 00:22:15,120 problem, give me more money. And then it literally fuels the 479 00:22:15,120 --> 00:22:17,200 fire and you're pouring gasoline on the fire. 480 00:22:17,480 --> 00:22:19,480 And we get to this moment that we're in today. 481 00:22:19,480 --> 00:22:22,080 That's right. With that said, I, I want to, so 482 00:22:22,080 --> 00:22:23,800 there's like 3 or 4 things are all good things. 483 00:22:23,800 --> 00:22:28,000 I want to kind of so Mumdani and the Mumdani machine there is 484 00:22:28,000 --> 00:22:31,960 the, there's the housing, education, healthcare piece, 485 00:22:31,960 --> 00:22:33,680 which is kind of, and then there's the new Deal. 486 00:22:33,680 --> 00:22:36,440 So go in those layers, right? So on the Mumdani machine point, 487 00:22:36,440 --> 00:22:39,880 like what I think a very important distinction that we 488 00:22:39,880 --> 00:22:42,680 see in communism, but that's also helpful in America. 489 00:22:42,680 --> 00:22:45,760 And so, you know, sovocism is the Communist Party and the and 490 00:22:45,760 --> 00:22:48,120 the people, right? Lots of things that the 491 00:22:48,120 --> 00:22:51,520 Communist Party did were actually relatively good for a 492 00:22:51,520 --> 00:22:54,040 party member, even if they actually made the whole country 493 00:22:54,040 --> 00:22:57,200 in themselves poorer in absolute terms, but worse for the people. 494 00:22:57,600 --> 00:23:02,080 And so for a lot of the Mamdani machine, the nonprofit's will 495 00:23:02,480 --> 00:23:06,160 make money on this, right? Like that's to say they will get 496 00:23:06,160 --> 00:23:09,160 their salaries because they will just let's say that 17% of the 497 00:23:09,160 --> 00:23:12,720 city or something like that, they will raise taxes, pull in 498 00:23:12,840 --> 00:23:15,360 top line revenue and the political billionaires will 499 00:23:15,360 --> 00:23:17,880 allocate it to the nonprofits through their actual clientele. 500 00:23:18,240 --> 00:23:22,600 These nonprofits are basically essentially the they're they're 501 00:23:22,600 --> 00:23:25,680 government employed activists indirectly, they get a budget 502 00:23:25,680 --> 00:23:28,240 from the state eveniftheyarenot.gov addresses. 503 00:23:28,440 --> 00:23:31,640 To call them an NGO, you have to actually, you know, you don't 504 00:23:31,640 --> 00:23:34,080 have to call a company a non governmental company, right? 505 00:23:34,360 --> 00:23:36,360 A non governmental organization. It's like they're so close to 506 00:23:36,360 --> 00:23:37,800 the government, they might as well be the government. 507 00:23:37,800 --> 00:23:39,600 So you have to call them an NGO because of that, right? 508 00:23:39,960 --> 00:23:45,440 OK, So these once we realize actually that that's their viral 509 00:23:45,440 --> 00:23:48,400 loop, right? Which as you said, but basically 510 00:23:48,400 --> 00:23:53,040 it is cause a problem, reallocate the monies to for the 511 00:23:53,040 --> 00:23:54,480 problem to cause more of the problem. 512 00:23:54,920 --> 00:23:57,520 And, and the thing about the intentions, by the way, I will 513 00:23:57,520 --> 00:23:59,920 push back a little bit on that. Actually a lot in some ways 514 00:23:59,920 --> 00:24:03,960 because they're, they're, they, they're good results. 515 00:24:03,960 --> 00:24:06,600 Forget intentions for a second. If we just look at the numbers, 516 00:24:07,120 --> 00:24:09,560 the number that they're making go up is the budget of their 517 00:24:09,560 --> 00:24:12,360 nonprofit. That's what they're really 518 00:24:12,360 --> 00:24:15,160 focused on. Like everything else, they're 519 00:24:15,160 --> 00:24:16,680 like, oh, you know, bad things happen. 520 00:24:16,680 --> 00:24:18,760 I guess you know somehow the needle, that's the. 521 00:24:18,760 --> 00:24:21,720 KPI because of my uncontrollable circumstance. 522 00:24:21,880 --> 00:24:24,360 But if their NGO budget went down, now they're on it like a 523 00:24:24,360 --> 00:24:27,320 hawk, right? So if they, and the way I put it 524 00:24:27,320 --> 00:24:30,160 is if they're so woke, why are they so rich, right? 525 00:24:30,280 --> 00:24:33,280 If this was truly something that was for the good of the people 526 00:24:33,280 --> 00:24:37,720 blah blah, set their budgets to completely 0 right defund the 527 00:24:37,720 --> 00:24:39,600 NGOs. In fact, even defund the police 528 00:24:39,600 --> 00:24:42,800 was fund the NGOs right What they wanted to do if you if you 529 00:24:42,800 --> 00:24:44,920 decode what they were saying, take the money away from the 530 00:24:44,920 --> 00:24:48,320 police Reds and give it to social services Blues. 531 00:24:48,680 --> 00:24:52,200 It was another kind of scheme the the Dem scam to take money 532 00:24:52,200 --> 00:24:54,360 away from the functional part of society and reallocate it 533 00:24:54,360 --> 00:24:57,240 towards basically blue jobs. Another example is $100 billion 534 00:24:57,240 --> 00:24:59,080 California train. And all of this I actually 535 00:24:59,080 --> 00:25:01,200 traced back to. I love that train. 536 00:25:01,400 --> 00:25:02,960 Yeah, go ahead. Yeah, the, the, the feed, the 537 00:25:02,960 --> 00:25:06,000 California train feed, it makes clear that they, they, they 538 00:25:06,000 --> 00:25:09,800 always talk about jobs, jobs, jobs on that feed, not rails, 539 00:25:09,920 --> 00:25:12,560 you know, miles of rail, right? It's like the Milton Friedman 540 00:25:12,560 --> 00:25:16,040 thing about, you know, the people in China is apocryphal. 541 00:25:16,040 --> 00:25:18,120 But, you know, they were using shovels and he's like, why 542 00:25:18,120 --> 00:25:19,880 aren't they using, you know, cranes to dig? 543 00:25:19,880 --> 00:25:21,640 And they said, well, it's creating more jobs, so why don't 544 00:25:21,640 --> 00:25:23,920 they use spoons then, Right. So California took that 545 00:25:23,920 --> 00:25:26,520 literally and they built like, like less than a mile of track 546 00:25:26,520 --> 00:25:28,200 or something ludicrous. They put a photo of it, right? 547 00:25:28,360 --> 00:25:30,040 They made the mistake of putting a photo because then it was 548 00:25:30,040 --> 00:25:33,320 actually clear amidst all the obfuscation that it was just a 549 00:25:33,320 --> 00:25:36,440 giant bribe of Blues. But they're again, their 550 00:25:36,440 --> 00:25:39,680 innovation is not to give a billion dollars to one person, 551 00:25:39,960 --> 00:25:42,560 but to split that billion dollars over 10,000 people times 552 00:25:42,560 --> 00:25:46,280 $100,000 a person. So that each one of them 553 00:25:46,520 --> 00:25:49,800 basically has a make work job in the, in their, their political 554 00:25:49,800 --> 00:25:53,680 constituencies, right. So that kind of thing, whether 555 00:25:53,680 --> 00:25:56,960 it's another example is the Podesta 376 billion for green 556 00:25:56,960 --> 00:25:59,400 stuff, right. Once we realize like the blue 557 00:25:59,400 --> 00:26:02,920 business model is capture the state and then capture the money 558 00:26:03,440 --> 00:26:05,880 and their version of going. Public and you flow the money 559 00:26:05,880 --> 00:26:07,680 back out to the people that voted yes. 560 00:26:07,680 --> 00:26:11,400 That's the model and I've seen it if you watch any Senate 561 00:26:11,400 --> 00:26:14,800 confirmation hearing you can observe it yes, because the 562 00:26:14,800 --> 00:26:17,960 questions the senators will ask the government administrator 563 00:26:17,960 --> 00:26:22,160 that they're appointing or approving is I have this program 564 00:26:22,160 --> 00:26:24,400 in my state. It creates this many jobs for my 565 00:26:24,400 --> 00:26:26,000 state. Are you going to take away that 566 00:26:26,000 --> 00:26:28,640 program That's the number one thing they always focus on and 567 00:26:28,640 --> 00:26:31,040 as long as that the the answer is I will not take away that 568 00:26:31,040 --> 00:26:33,120 program. They say great, you, you are now 569 00:26:33,120 --> 00:26:33,880 confirmed. That's right. 570 00:26:33,960 --> 00:26:37,040 And that confirms that the capital will be sucked up and 571 00:26:37,040 --> 00:26:39,920 reallocated back to their interests and they are competing 572 00:26:39,920 --> 00:26:42,440 for their particular constituents to get their flow 573 00:26:42,880 --> 00:26:44,760 out of the state. And that is why the state gets 574 00:26:44,760 --> 00:26:46,240 bigger and bigger. That's right. 575 00:26:46,360 --> 00:26:48,440 And I think actually one of the consequence of that is. 576 00:26:49,080 --> 00:26:51,880 By the way, it's, it's, it's, it's, it's socialism, it's, it's 577 00:26:52,120 --> 00:26:53,400 government employment for everyone. 578 00:26:53,600 --> 00:26:55,680 And we don't realize it. We don't realize how much of the 579 00:26:55,680 --> 00:26:58,440 capital is flowing to individual, what percentage of 580 00:26:58,440 --> 00:26:59,800 people have capital flowing to them. 581 00:26:59,800 --> 00:27:01,400 That's right. In the state, what's what's 582 00:27:01,400 --> 00:27:05,280 happening is there's now 2 ledgers that have arisen outside 583 00:27:05,280 --> 00:27:08,800 the American state, which are China and crypto, which they 584 00:27:08,800 --> 00:27:11,600 can't do this in the same way. Like because the Chinese have 585 00:27:11,600 --> 00:27:14,080 their own sort of sovereign system and Bitcoin and crypto 586 00:27:14,080 --> 00:27:16,920 have their own sovereign system. And so because of that, and 587 00:27:16,920 --> 00:27:20,040 they've tried with the trade war and with the, you know, the war 588 00:27:20,040 --> 00:27:22,760 on crypto, they tried to shut down these alternative systems 589 00:27:22,760 --> 00:27:24,520 and they've now failed basically declared defeat. 590 00:27:24,560 --> 00:27:26,920 Both Republicans essentially have declared defeat, I'd argue 591 00:27:26,920 --> 00:27:30,000 on, on China on the trade war. Democrats were defeated on, on, 592 00:27:30,000 --> 00:27:32,000 on crypto. And So what that mean? 593 00:27:32,000 --> 00:27:35,440 I'm not saying good or bad or just, I'm just observing what 594 00:27:35,440 --> 00:27:38,240 that means now is this system has true competition. 595 00:27:38,480 --> 00:27:40,600 So all of the failures that you're talking about, like the, 596 00:27:40,600 --> 00:27:42,520 you know, or the viral loops and so and so forth. 597 00:27:43,840 --> 00:27:47,120 Now there's a consequence because it can't just it can 598 00:27:47,120 --> 00:27:50,280 capture the money within its sphere, but it's losing control 599 00:27:50,280 --> 00:27:51,840 because more things are exiting its sphere. 600 00:27:52,160 --> 00:27:55,280 Once something goes on chain or in China and you know, in on 601 00:27:55,280 --> 00:27:59,200 chain or in China, then blue America can no longer tax and 602 00:27:59,200 --> 00:28:01,840 control it, right. And actually, one, one thing is, 603 00:28:01,840 --> 00:28:05,280 if you notice, quite a lot of Blues are just for taxes 604 00:28:05,600 --> 00:28:08,080 broadly, right? Part of it is to attack their 605 00:28:08,080 --> 00:28:10,760 hated enemy of the libertarian capitalist, you know, tech guy. 606 00:28:11,000 --> 00:28:14,640 But part of this also, you know, Zuck's thing with intranet.org a 607 00:28:14,800 --> 00:28:16,840 while back, right? Well, OK, you know how like 608 00:28:17,000 --> 00:28:18,880 Google and Facebook have various initiatives get everybody 609 00:28:18,880 --> 00:28:21,200 online? Yeah, Yeah, that's because. 610 00:28:21,200 --> 00:28:24,120 Laptop per child, 1 billion others, 3 billion others, all 611 00:28:24,120 --> 00:28:24,840 that stuff. That's right. 612 00:28:24,840 --> 00:28:26,640 That's right. And you know, I think 1 laptop 613 00:28:26,640 --> 00:28:28,840 per child was actually very successful in the form of the 614 00:28:28,840 --> 00:28:31,360 Android smartphone. And that's, you know, motivated 615 00:28:31,360 --> 00:28:32,280 it. Yeah, and motivated it. 616 00:28:32,280 --> 00:28:36,320 That's right. But one of the things we take 617 00:28:36,320 --> 00:28:39,880 for granted sort of in our so as people of the network as opposed 618 00:28:39,880 --> 00:28:42,000 to people of the state. So roughly, I'd say people of 619 00:28:42,000 --> 00:28:44,560 God are the conservatives, people of the state are the 620 00:28:44,560 --> 00:28:47,800 progressives, the Blues, and the people of the network is tech, 621 00:28:47,800 --> 00:28:49,320 the Internet. That's like us, basically, 622 00:28:49,320 --> 00:28:50,760 right? And there's some overlap there. 623 00:28:50,760 --> 00:28:54,800 Nothing's ever totally clean. But for us the equivalent is 624 00:28:54,880 --> 00:28:57,440 grow the network, right? That's a more Internet 625 00:28:57,440 --> 00:28:59,920 connectivity generally good. Facebook's thing was making 626 00:28:59,920 --> 00:29:03,120 everybody connected, Google make the world's information 627 00:29:03,120 --> 00:29:04,880 organized, open source, and so on. 628 00:29:05,080 --> 00:29:07,920 So we want to increase the scale of the network as distinct from 629 00:29:07,920 --> 00:29:10,520 the state. That is, in my view, the main 630 00:29:10,520 --> 00:29:12,400 counterbalance to the state today. 631 00:29:12,880 --> 00:29:15,800 And actually, you know, that exists in the past, but it's the 632 00:29:15,800 --> 00:29:17,760 strongest it's ever been in history because it's like 633 00:29:17,760 --> 00:29:21,720 formal, that is to say markets existed, peer-to-peer trade 634 00:29:21,720 --> 00:29:22,880 existed. The network is sort of the 635 00:29:22,880 --> 00:29:25,640 peer-to-peer aspect of humanity. But now it's like digital and 636 00:29:25,640 --> 00:29:28,800 stronger than the state after hundreds of years where it got 637 00:29:28,800 --> 00:29:30,680 stronger in fact. So the new deal points you want 638 00:29:30,680 --> 00:29:32,680 to talk about that, right. So once you elaborate on that 639 00:29:32,680 --> 00:29:35,160 point and I'll give and I. I just think that there was this 640 00:29:35,160 --> 00:29:38,960 moment in American history when prior to this moment, America 641 00:29:38,960 --> 00:29:41,520 was built on originally a notion of, I would say, rugged 642 00:29:41,520 --> 00:29:43,960 individualism. But like shedding the state, 643 00:29:43,960 --> 00:29:47,600 shedding the monarchy, moving here, enabling individualism, 644 00:29:47,600 --> 00:29:50,720 enabling. And again, I, I, I, I, I think 645 00:29:50,720 --> 00:29:58,920 that collectivism ends up deriving tyranny in its absolute 646 00:29:58,920 --> 00:30:02,800 sense to have everyone in a socialist system or communist 647 00:30:02,800 --> 00:30:07,640 system, really a true communist system requires some 648 00:30:08,040 --> 00:30:10,960 extraordinary controls and, and, and limitation of individual 649 00:30:10,960 --> 00:30:14,000 liberties. So the more collectivist you 650 00:30:14,000 --> 00:30:16,800 become, the less liberties. The fewer liberties there are, 651 00:30:16,840 --> 00:30:19,120 the fewer individual liberties there are, which means the more 652 00:30:19,120 --> 00:30:21,240 tyranny there is. And that's why I just don't 653 00:30:21,240 --> 00:30:22,800 think you can have socialism without tyranny. 654 00:30:23,880 --> 00:30:26,720 So America was founded on the principle of this true 655 00:30:26,720 --> 00:30:30,960 individualism, on this lack of tyranny, this lack of taxation, 656 00:30:30,960 --> 00:30:36,200 this shedding of the monarchy and enabling individual agency 657 00:30:36,680 --> 00:30:39,240 where everyone has an opportunity to realize their 658 00:30:39,240 --> 00:30:42,000 full potential, whatever they want it to be, because the 659 00:30:42,000 --> 00:30:44,480 tyranny is now gone. But everyone also now has 660 00:30:44,480 --> 00:30:47,640 accountability. If you don't perform in society, 661 00:30:48,000 --> 00:30:51,240 if you don't exceed, if you don't succeed, if you don't meet 662 00:30:51,240 --> 00:30:55,760 a minimum limitation, minimum limit, you're you're going to be 663 00:30:55,760 --> 00:30:57,360 left alone. You're you're going to suffer, 664 00:30:57,360 --> 00:31:00,520 you're going to struggle. So the question then became at 665 00:31:00,520 --> 00:31:03,600 some point that had to break, which was as more people suffer, 666 00:31:03,920 --> 00:31:06,960 as more people struggle, there's a moment when that group of 667 00:31:06,960 --> 00:31:09,840 people has empathy and they say we have to solve this problem. 668 00:31:10,120 --> 00:31:14,800 And that's where the state flips from being initially a state 669 00:31:14,800 --> 00:31:18,360 that is really driven by its limitations, 1% income tax, 670 00:31:18,360 --> 00:31:20,040 we're not going to do anything. The state's going to stay out of 671 00:31:20,040 --> 00:31:25,080 your way, individual rights, total freedom and liberty to we 672 00:31:25,080 --> 00:31:28,040 have to do something. The state is responsible for 673 00:31:28,040 --> 00:31:30,200 solving the, the Great Depression. 674 00:31:31,040 --> 00:31:34,120 And so the New Deal meant to address the problems of the 675 00:31:34,120 --> 00:31:37,160 Great Depression from an empathetic note, which was, hey, 676 00:31:37,160 --> 00:31:39,400 people are suffering and there's no other solution in a free 677 00:31:39,400 --> 00:31:41,160 market. The, the market failed and 678 00:31:41,160 --> 00:31:45,240 there's other external factors that are preventing individuals 679 00:31:45,600 --> 00:31:47,480 from just having a basic standard of living. 680 00:31:47,920 --> 00:31:52,240 And in that moment you started the pattern and the progress of 681 00:31:52,240 --> 00:31:57,400 the state saying I can do more and I can provide you a higher 682 00:31:58,040 --> 00:32:00,120 order of living and then a higher order of living. 683 00:32:00,320 --> 00:32:02,640 And so you went from the New Deal, to building highways, to 684 00:32:02,640 --> 00:32:05,880 building suburbs, to funding home loans, to funding 685 00:32:06,200 --> 00:32:09,880 education, to funding healthcare, to doing literally 686 00:32:09,880 --> 00:32:13,560 anything and everything that a politician could dream up to 687 00:32:13,560 --> 00:32:16,280 provide a better standard of living for every individual. 688 00:32:16,400 --> 00:32:19,840 Which fundamentally breaks free market forces and ultimately 689 00:32:19,840 --> 00:32:24,600 leaves everyone begging for the next teat to be able to just do 690 00:32:24,600 --> 00:32:26,720 anything. Which is where we kind of start 691 00:32:26,720 --> 00:32:30,080 to find ourselves today. I completely agree with the the 692 00:32:30,080 --> 00:32:33,120 diagnosis of where we've gotten to insert in the USI. 693 00:32:34,200 --> 00:32:38,280 I'll offer a few given that I'm generally sympathetic to this 694 00:32:38,280 --> 00:32:40,560 view, let me offer not exactly counter arguments which 695 00:32:40,560 --> 00:32:42,440 alternate perspective I found help great help. 696 00:32:42,480 --> 00:32:45,840 OK. So the first is, I think of the 697 00:32:45,840 --> 00:32:53,520 last 500 years from 1492 to, let's say up to 19501492 to 1950 698 00:32:53,520 --> 00:32:56,840 was a period of increasing technological centralization 699 00:32:57,120 --> 00:32:59,440 that was offset by the discovery of the frontier. 700 00:33:00,120 --> 00:33:04,480 So that's to say, so basically, let's say 1492 to 1890, you had 701 00:33:04,480 --> 00:33:07,120 the Americas you so you had dozens of startup countries 702 00:33:07,120 --> 00:33:09,800 basically because you also have the South America, you know, 703 00:33:09,800 --> 00:33:12,120 Latin American things, right? And you had, you know, North 704 00:33:12,120 --> 00:33:14,120 America, there's Canada, there's the French Empire, there's all 705 00:33:14,120 --> 00:33:17,240 these guys duking it out. And just like, you know, amidst 706 00:33:17,320 --> 00:33:20,880 all these search engines Google One amidst all these American 707 00:33:20,920 --> 00:33:24,040 startup countries, like the United States, America one, 708 00:33:24,120 --> 00:33:27,120 right? And so the presence of that 709 00:33:27,120 --> 00:33:31,680 frontier meant that there was more productive things happening 710 00:33:31,680 --> 00:33:33,120 there. Whereas in Europe, there's more 711 00:33:33,120 --> 00:33:34,880 in the way of just warfare back and forth. 712 00:33:34,880 --> 00:33:39,760 In fact, like the Puritans actually left the conflicts of 713 00:33:39,760 --> 00:33:42,000 England. In fact, at different points in 714 00:33:42,000 --> 00:33:46,840 the English Civil War, the left side went to Massachusetts and 715 00:33:46,840 --> 00:33:49,800 the right side went to Virginia, right. 716 00:33:50,160 --> 00:33:52,880 And so the various, you know, the the Roundheads went to 717 00:33:52,960 --> 00:33:56,640 Massachusetts, the Cavaliers went to Virginia, and then 200 718 00:33:56,640 --> 00:33:58,600 years later they had another Civil War in America. 719 00:33:58,600 --> 00:34:01,120 And now 200 years later we're having another the cold Civil 720 00:34:01,120 --> 00:34:02,120 War basically between the same set. 721 00:34:02,120 --> 00:34:03,520 It's like deep cultural history, right? 722 00:34:03,800 --> 00:34:05,600 So in some sense, you know, people have said the American 723 00:34:05,600 --> 00:34:07,360 Civil War is actually about the English Civil War, right? 724 00:34:07,360 --> 00:34:09,639 They these two types of things fight. 725 00:34:09,679 --> 00:34:14,360 OK, so but on the point about FDR, there is I'll give a 726 00:34:14,360 --> 00:34:17,800 partial granting everything you're saying, I'll give a 727 00:34:17,800 --> 00:34:21,040 partial qualified defense of FDR from someone who's as critical 728 00:34:21,040 --> 00:34:22,400 of him as. You and by the way, I'm not 729 00:34:22,400 --> 00:34:25,239 being critical in a sense that it was the wrong decision. 730 00:34:25,239 --> 00:34:27,920 No, no, I'm just highlighting at some point there's a moment 731 00:34:27,920 --> 00:34:31,679 where civil society recognizes the needs of a certain 732 00:34:31,679 --> 00:34:34,600 percentage of the society and then they try and organize and 733 00:34:34,600 --> 00:34:37,560 the typical organizational model is the state to solve the 734 00:34:37,560 --> 00:34:39,199 problems of that particular part. 735 00:34:39,360 --> 00:34:42,800 But the problem is, once you crack that egg, there's no 736 00:34:42,800 --> 00:34:44,440 putting it back in the shell. That's right. 737 00:34:44,440 --> 00:34:47,159 So here's a few things which at least were helpful lenses for 738 00:34:47,159 --> 00:34:50,239 me. You know, for the first is FDR 739 00:34:50,239 --> 00:34:54,000 was the least bad communist dictator during a period where 740 00:34:54,000 --> 00:34:56,199 technology favored communist dictators, Right, Right. 741 00:34:56,520 --> 00:34:58,240 Or if you include, you know, let's call it collectivist 742 00:34:58,240 --> 00:34:59,840 dictator, you include Hitler and so on and so forth. 743 00:34:59,840 --> 00:35:02,040 So Hitler, Stalin, Mao, etcetera, etcetera. 744 00:35:02,280 --> 00:35:04,440 FDR was like the least bad. Yeah, right. 745 00:35:04,760 --> 00:35:08,160 So he only implemented like 90% marginal tax rates, not 100%. 746 00:35:08,160 --> 00:35:09,880 Yeah. He only implemented the Japanese 747 00:35:09,880 --> 00:35:12,480 internment camps, not the gulags or the concentration camps, 748 00:35:12,640 --> 00:35:15,280 Right. That's that's faint praise, but 749 00:35:15,280 --> 00:35:18,360 it's it's true in a sense that he was like the the least bad 750 00:35:18,360 --> 00:35:20,000 communist dictator. And in fact, there's this great 751 00:35:20,000 --> 00:35:23,160 book called, gosh, it's like 3 new deals. 752 00:35:23,400 --> 00:35:24,280 You might have you seen this one? 753 00:35:24,400 --> 00:35:27,800 OK, you'll like this one. It actually shows how FDR was 754 00:35:27,800 --> 00:35:29,880 actually enamoured with Mussolini and Hitler and and so 755 00:35:29,880 --> 00:35:31,880 and so forth before World War 2, right? 756 00:35:32,080 --> 00:35:34,520 There's a lot of influence from both the Nazi and Soviet side 757 00:35:34,520 --> 00:35:37,720 prior and and vice versa. Like American ideas went to 758 00:35:38,080 --> 00:35:41,480 Germany, went to, you know, the, the, the Soviet Union and so on 759 00:35:41,480 --> 00:35:44,040 and so forth. OK, so, but I would argue that 760 00:35:44,040 --> 00:35:48,000 the FDR thing is actually part of a broader centralization arc. 761 00:35:48,240 --> 00:35:52,440 For example, 1865 was the moment when people said the United 762 00:35:52,440 --> 00:35:55,480 States is as opposed to the United States are, right. 763 00:35:55,480 --> 00:35:58,800 So Lincoln was another force of centralization. 1776 actually 764 00:35:58,800 --> 00:36:04,200 really 1789, you know, after the American Revolution, less well 765 00:36:04,200 --> 00:36:06,760 known as something called like Shea's rebellion, right, where 766 00:36:06,760 --> 00:36:08,720 people essentially tried to invoke the same American 767 00:36:08,720 --> 00:36:10,520 Revolution concept of the right to break free. 768 00:36:10,520 --> 00:36:12,520 And then George Washington put it down, right? 769 00:36:12,720 --> 00:36:14,320 He said, actually you can't exit anymore, right? 770 00:36:14,640 --> 00:36:17,760 So there was a centralization arc, not without its reversals 771 00:36:17,760 --> 00:36:21,080 and so on, but broadly centralization up till 1950, 772 00:36:21,080 --> 00:36:22,800 both in America and actually outside. 773 00:36:22,800 --> 00:36:25,560 Why she had like the unification of Italy by Garibaldi. 774 00:36:25,560 --> 00:36:26,800 You had the unification of Germany. 775 00:36:26,800 --> 00:36:28,440 You had the, you know, the French Revolution. 776 00:36:28,440 --> 00:36:32,640 And the thing about the French Revolution is normally you and I 777 00:36:32,640 --> 00:36:35,640 and many people like us, think of leftism as something which 778 00:36:35,640 --> 00:36:37,840 just disorders society, makes it chaotic. 779 00:36:37,840 --> 00:36:39,480 Think about the guillotine. Think about the chaos of the 780 00:36:39,480 --> 00:36:42,120 French Revolution or the chaos of, you know, the the Russian 781 00:36:42,120 --> 00:36:44,280 Revolution. But there's one thing that we 782 00:36:44,280 --> 00:36:48,520 have to contend with, which is somehow out of that chaos, they 783 00:36:48,520 --> 00:36:51,640 fashioned this crazy organized military machine, which 784 00:36:51,640 --> 00:36:55,160 eventually, you know, Napoleon's army or in Russia after Russian 785 00:36:55,160 --> 00:36:58,320 Revolution, the right army. So normally a company, for 786 00:36:58,320 --> 00:37:01,440 example, that's truly in total chaos just can't do anything. 787 00:37:01,440 --> 00:37:03,160 It just collapses and everybody quits, right? 788 00:37:03,520 --> 00:37:07,400 But there's some underlying logic to leftism, and it's 789 00:37:07,400 --> 00:37:09,480 neither something that the left nor the right talks about. 790 00:37:09,480 --> 00:37:12,400 I think the left will say it's all sharing and caring, and the 791 00:37:12,400 --> 00:37:13,920 right will say the left is naive. 792 00:37:14,320 --> 00:37:18,240 But really, I'd say the left is just like a Voltron death beast, 793 00:37:18,720 --> 00:37:21,000 OK? It's meant to take large numbers 794 00:37:21,000 --> 00:37:25,720 of people, unify them into like a Voltron, and then laser eyes 795 00:37:25,720 --> 00:37:27,680 just become a killing machine, right? 796 00:37:28,080 --> 00:37:29,920 And then basically force. That's what common. 797 00:37:30,160 --> 00:37:32,360 Vacuum too. Vacuum too, right so it would 798 00:37:32,360 --> 00:37:34,960 flip country after country into communism, pull them into the 799 00:37:34,960 --> 00:37:39,160 envelope, right and then turn them like into conquerors and so 800 00:37:39,160 --> 00:37:42,920 on and so forth, right. So if you think of it as like A 801 00:37:43,680 --> 00:37:46,920 and, and it's there's a lineal relationship to basically 802 00:37:46,920 --> 00:37:48,880 Abrahamic religions like Christianity and so and so 803 00:37:48,880 --> 00:37:50,880 forth. It's evangelistic, it's 804 00:37:50,880 --> 00:37:53,240 egalitarian. Everybody must be converted. 805 00:37:53,240 --> 00:37:54,520 If they don't convert, they will die. 806 00:37:54,760 --> 00:37:57,400 You know, they die by the sword. They live under our rules. 807 00:37:57,560 --> 00:38:00,120 We know what's good, right? There's something there to that 808 00:38:00,120 --> 00:38:02,120 right? And that's got a power to it 809 00:38:02,120 --> 00:38:04,920 because it's evangelist. By contrast, when you compare it 810 00:38:04,920 --> 00:38:08,560 to the alternative, if you're just stay at home, like think 811 00:38:08,560 --> 00:38:10,000 about in our tech companies, right? 812 00:38:11,000 --> 00:38:13,040 You know, there's various people who have at various points 813 00:38:13,200 --> 00:38:15,800 champion lifestyle businesses. The lifestyle businesses are 814 00:38:15,800 --> 00:38:19,640 basically almost as hard to run as like a big business because 815 00:38:19,640 --> 00:38:21,680 you're still ACEO, you're still responsible for everything. 816 00:38:21,680 --> 00:38:23,480 You have no one. You can't sleep because you 817 00:38:23,480 --> 00:38:24,800 can't delegate to anybody, right? 818 00:38:25,000 --> 00:38:26,840 Lifestyle businesses mean the business is your life, right? 819 00:38:26,840 --> 00:38:27,840 You. There's no possibility of an 820 00:38:27,840 --> 00:38:31,480 exit and you can get crushed by somebody who's just playing for 821 00:38:31,480 --> 00:38:33,560 getting big and they build this giant Unicorn. 822 00:38:33,560 --> 00:38:36,080 They can take your market. There's no nonlinearity or yeah. 823 00:38:36,280 --> 00:38:37,640 Yeah, exactly. And so that's actually what 824 00:38:37,640 --> 00:38:41,160 happened with all the places that tried to not play the big 825 00:38:41,160 --> 00:38:43,720 guy game. All the city states got rolled 826 00:38:43,720 --> 00:38:45,000 up into nation states. Yeah, that's right. 827 00:38:45,360 --> 00:38:46,840 That's right. And so, like, ever been to San 828 00:38:46,840 --> 00:38:48,400 Marino? I've not been. 829 00:38:48,680 --> 00:38:52,160 OK, so that's this amazing like duck bill platypus, you know, 830 00:38:52,240 --> 00:38:54,800 it's like it's like a it's like a missing link, you know, kind 831 00:38:54,800 --> 00:38:55,840 of thing like a duck bill platypus. 832 00:38:55,840 --> 00:38:58,000 It's like it's like a mammal that lays eggs, a rare kind of. 833 00:38:58,000 --> 00:39:01,040 So San Marino is a rare city state that survives to the 834 00:39:01,040 --> 00:39:05,640 present day because Garibaldi took refuge in San Marino when 835 00:39:05,640 --> 00:39:07,720 he was unifying Italy. So he sort of spared it from 836 00:39:07,720 --> 00:39:11,040 forcible unification, right? So it still has its own UN 837 00:39:11,040 --> 00:39:13,520 membership, its own sovereignty that's jealously guarded through 838 00:39:13,520 --> 00:39:16,760 the years, right? And it's like this 30,000 person 839 00:39:16,760 --> 00:39:18,600 thing, right? So it's a piece of the past that 840 00:39:18,600 --> 00:39:21,280 is still here. So the reason I say this, once 841 00:39:21,280 --> 00:39:23,720 we understand, in my view, the logic of it, there's this 842 00:39:23,720 --> 00:39:26,080 technological centralizing force, but the frontier was the 843 00:39:26,080 --> 00:39:28,520 alternate geographical force that was like a pressure exit 844 00:39:28,520 --> 00:39:31,640 valve, right? And so that's why lots of 845 00:39:31,640 --> 00:39:34,920 Europeans left Europe for the for Americas. 846 00:39:34,920 --> 00:39:36,280 They want to leave the wars of Europe. 847 00:39:36,280 --> 00:39:38,000 They want to leave the revolutions of 1848. 848 00:39:38,160 --> 00:39:39,640 They left the Irish potato famine. 849 00:39:39,840 --> 00:39:42,320 They left, you know, like all kinds of things in Poland, 850 00:39:42,320 --> 00:39:44,360 Italy, all kinds of chaos and they came to America. 851 00:39:44,360 --> 00:39:46,840 OK, fine. So then at 1950, I would 852 00:39:46,840 --> 00:39:49,200 consider that historical peak centralization. 853 00:39:49,400 --> 00:39:52,920 You had the minimum number more political units ever, like about 854 00:39:53,040 --> 00:39:55,720 50 UN members, right? And because you had all these 855 00:39:55,720 --> 00:39:58,840 giga states like, you know, the USSR and China that have just 856 00:39:58,840 --> 00:40:01,400 formed and obviously USA, hundreds of millions of people 857 00:40:01,400 --> 00:40:05,160 under 1 banner. And it was a time where there 858 00:40:05,160 --> 00:40:08,120 was like 1 telephone company and two superpowers and three TV 859 00:40:08,120 --> 00:40:10,000 stations. And then the transition was 860 00:40:10,000 --> 00:40:13,400 invented. And that began a rapid 861 00:40:13,400 --> 00:40:16,320 decentralization arc that's occurring almost 10 times as 862 00:40:16,320 --> 00:40:19,760 fast as the centralization arc. So you go rapidly transistor and 863 00:40:19,760 --> 00:40:22,640 you have like cable TV and you have the personal computer and 864 00:40:22,640 --> 00:40:24,240 you have the Internet and you have the smartphone, you have 865 00:40:24,240 --> 00:40:27,160 cryptocurrency and you have open source IA models and zip like 866 00:40:27,160 --> 00:40:29,320 this. We're unwinding several 100 867 00:40:29,320 --> 00:40:31,520 years of centralization in several decades of 868 00:40:31,520 --> 00:40:35,320 decentralization. And so that's why I think the 869 00:40:35,320 --> 00:40:38,400 Western state is going to lose to the network. 870 00:40:39,080 --> 00:40:42,000 It's just like if I, if I track various metrics of steep 871 00:40:42,000 --> 00:40:44,720 capacity, if I track all that stuff, it it seems to go away. 872 00:40:44,720 --> 00:40:46,840 Let me pause there and I'll give one more argument. 873 00:40:47,040 --> 00:40:50,440 The western states are going to lose to the network. 874 00:40:50,520 --> 00:40:55,800 Yes, meaning that what I mean to that is for example, the S&P 493 875 00:40:55,800 --> 00:40:59,760 versus the S, the Magnificent 7, all of the legacy American 876 00:40:59,760 --> 00:41:02,920 economies basically being shut down and the and it's all going 877 00:41:02,920 --> 00:41:05,840 towards Internet companies or the money is going towards 878 00:41:05,840 --> 00:41:08,120 digital asset treasuries, which are like Internet currencies, 879 00:41:08,320 --> 00:41:11,400 right. And you can see this like when 880 00:41:11,400 --> 00:41:14,880 everybody's, whenever anybody was giving me the bowl case on 881 00:41:14,880 --> 00:41:17,600 America, the part that was working was the Internet. 882 00:41:18,200 --> 00:41:20,680 But the Internet in my view is as American as America was 883 00:41:20,680 --> 00:41:23,240 British. Like now. 884 00:41:23,240 --> 00:41:26,600 Like it's version 3 point O. Do you think that the current 885 00:41:28,040 --> 00:41:30,800 government, the current federal government, the Trump 886 00:41:30,800 --> 00:41:35,360 administration, and the effort to reindustrialize manufacturing 887 00:41:35,360 --> 00:41:38,760 in the United States with government support creates a 888 00:41:38,760 --> 00:41:40,960 different environment that actually gives them a shot? 889 00:41:41,040 --> 00:41:46,240 I like a lot of these people. I think they mean well and I 890 00:41:46,240 --> 00:41:47,920 really think they mean well in the sense of I don't think 891 00:41:47,920 --> 00:41:50,120 they're doing the profit maximizing thing and so on and 892 00:41:50,120 --> 00:41:52,520 so forth. But I don't think it's going to 893 00:41:52,520 --> 00:41:54,560 work for. In fact, I already think it's 894 00:41:54,560 --> 00:41:58,760 kind of, or at least like this, there may be some long term 895 00:41:58,760 --> 00:42:01,640 success that comes out of it, but it's not going to work on 896 00:42:01,640 --> 00:42:03,520 the time scales that people think it's going to work. 897 00:42:03,520 --> 00:42:06,720 And it's not going to work to save the political entity. 898 00:42:06,960 --> 00:42:09,800 Like in the sense of, you know, the USSR was a political entity 899 00:42:10,040 --> 00:42:12,320 that did not survive. Of course the land survived. 900 00:42:12,320 --> 00:42:14,240 The people survived. Russia exists, right? 901 00:42:14,240 --> 00:42:17,120 Ukraine exists, Estonia exists. There was essentially a national 902 00:42:17,120 --> 00:42:18,760 bankruptcy. But if you're right about the 903 00:42:18,760 --> 00:42:23,520 digital, the network state, there's still a demand curve 904 00:42:23,560 --> 00:42:27,160 that is unmet for energy production, energy capacity, 905 00:42:27,600 --> 00:42:33,640 which has an inherent kind of, you know, economic driver has an 906 00:42:33,640 --> 00:42:35,640 inherent kind of economic stratum. 907 00:42:35,640 --> 00:42:37,960 There's infrastructure, there's layers that need to be built. 908 00:42:38,520 --> 00:42:42,280 And that's inevitable if if what you're saying is true. 909 00:42:42,560 --> 00:42:44,600 And also if what you're saying is not true, it's also 910 00:42:44,600 --> 00:42:46,480 inevitable. Well, I I guess. 911 00:42:46,480 --> 00:42:47,960 Or. Or do we just stall? 912 00:42:48,000 --> 00:42:50,560 Does energy become the competitive force that. 913 00:42:50,920 --> 00:42:52,400 So there's several kind of layers. 914 00:42:52,400 --> 00:42:55,200 So I think the first thing is I just start always with 915 00:42:55,200 --> 00:42:59,600 calibrating with numbers, right? And very few people who I talked 916 00:42:59,720 --> 00:43:05,120 to about reindustrialization and so on want to really engage with 917 00:43:05,960 --> 00:43:08,600 like, the reality of what China is, right, Right. 918 00:43:08,720 --> 00:43:11,840 Yeah, it's two terawatts going to 8 by 2040. 919 00:43:12,440 --> 00:43:14,840 It's the United States. Is 1 going to two? 920 00:43:15,720 --> 00:43:18,680 If we're if, if everything. Goes and by the way, the China 2 921 00:43:18,680 --> 00:43:24,360 to 8, they're outpacing forecast and they have several new energy 922 00:43:24,360 --> 00:43:27,000 technologies that didn't exist in the original forecast. 923 00:43:27,000 --> 00:43:28,880 And they don't have anti nuclear activists and they're not. 924 00:43:28,880 --> 00:43:30,640 They're doing both nuclear and solar. 925 00:43:30,640 --> 00:43:32,280 And America is doing neither nuclear nor. 926 00:43:32,280 --> 00:43:34,920 Solar, or at least the nuclear rollout, is insane. 927 00:43:34,920 --> 00:43:37,160 It's insane, right? So but and so energy is one 928 00:43:37,160 --> 00:43:40,040 piece of it. But really what it is is like 929 00:43:40,040 --> 00:43:42,240 the high tech part is absolutely 1 lens on it. 930 00:43:42,480 --> 00:43:44,600 But let me look at some other lenses on Chinese society, 931 00:43:44,600 --> 00:43:46,200 right? So first of all, they've got 932 00:43:46,200 --> 00:43:48,720 intact families, right? They've got the kids going to 933 00:43:48,720 --> 00:43:51,640 school. They have, you know, basically 934 00:43:51,640 --> 00:43:56,640 like, no crime, right? They have like, gleaming cities 935 00:43:56,640 --> 00:43:58,520 and like, the public infrastructure is there. 936 00:43:58,520 --> 00:44:01,000 They don't have like graffiti and you know, on the subways and 937 00:44:01,000 --> 00:44:03,760 stuff like this. The train station looked like a 938 00:44:03,760 --> 00:44:05,640 spaceport. Yeah, Star Wars. 939 00:44:05,640 --> 00:44:08,280 That new video that came out of that new train station that 940 00:44:08,280 --> 00:44:09,640 opened up. Now the thing about this, by the 941 00:44:09,640 --> 00:44:12,760 way, is like the Chinese people really suffered to get here, 942 00:44:12,760 --> 00:44:17,240 like their last 200 years were complete Mad Max. 943 00:44:17,240 --> 00:44:19,600 So even if they got to suffer for the next decade, they're OK. 944 00:44:20,040 --> 00:44:22,200 I mean they could, they could take some hits is my point. 945 00:44:22,280 --> 00:44:23,640 Yeah, exactly. There's people who have grown up 946 00:44:23,640 --> 00:44:25,840 with like basically going through the Cultural Revolution 947 00:44:25,840 --> 00:44:29,960 like they're boomers did not have a great 1960s and 1970s. 948 00:44:29,960 --> 00:44:31,520 I was not summer of love for them, right. 949 00:44:31,840 --> 00:44:33,240 So they're. Just any environment they're in 950 00:44:33,240 --> 00:44:34,600 today is better than where they came from. 951 00:44:34,640 --> 00:44:36,520 Exactly. They're kind of at least among 952 00:44:36,520 --> 00:44:39,320 the older generation, some of the younger ones have only grown 953 00:44:39,320 --> 00:44:41,680 up in a China, which just is amazing, right? 954 00:44:41,680 --> 00:44:43,760 So, but there's a consequence of that as well, which is they 955 00:44:43,760 --> 00:44:45,160 don't look up to the West, right? 956 00:44:45,400 --> 00:44:47,280 They think there's there's a Chinese version of almost 957 00:44:47,280 --> 00:44:50,640 everything the West has that's often better or even ahead of 958 00:44:50,640 --> 00:44:53,160 the West, right? Like China has flying cars, you 959 00:44:53,160 --> 00:44:55,360 know, E hang and all the stuff. And, you know, when I post 960 00:44:55,360 --> 00:44:58,560 videos of this, people will say that I post this video, which is 961 00:44:58,560 --> 00:45:00,720 like, we wanted flying cars. We got them with Chinese 962 00:45:00,720 --> 00:45:01,960 characters. It's kind of like, you know, 963 00:45:01,960 --> 00:45:05,280 it's a riff on the right. So E hang, it's basically like 964 00:45:05,280 --> 00:45:07,920 giant quadcopters, right? It's like, you know, the, the 965 00:45:07,920 --> 00:45:09,640 iPads are scaled up by phone. Yeah, yeah, yeah. 966 00:45:09,640 --> 00:45:11,120 It's like a scaled up DGI. OK. 967 00:45:11,520 --> 00:45:13,400 And people would say things like it's not a flying car. 968 00:45:13,400 --> 00:45:15,280 It doesn't have wings, It's not a flying car, it doesn't have 969 00:45:15,280 --> 00:45:16,920 wheels, It's not a flying car. It only just short hops. 970 00:45:16,920 --> 00:45:20,000 And I'm like, you know, they, they, they're stuck within a box 971 00:45:20,120 --> 00:45:23,280 where they refuse to admit or when I show videos of the 972 00:45:23,280 --> 00:45:23,800 Chinese. Cities. 973 00:45:23,840 --> 00:45:29,320 I'll give you a statistic. In 2015, ten years ago, papers 974 00:45:29,320 --> 00:45:32,040 published by Chinese research labs and major scientific 975 00:45:32,040 --> 00:45:33,880 journals were about half of the United States. 976 00:45:33,880 --> 00:45:36,000 Yeah. Now 50% more than the United 977 00:45:36,000 --> 00:45:36,680 States. Yes. 978 00:45:37,040 --> 00:45:39,800 And in every category, almost Life sciences. 979 00:45:39,800 --> 00:45:41,960 And about to cross the life sciences probably this month or 980 00:45:42,280 --> 00:45:43,520 next month. That's right. 981 00:45:43,520 --> 00:45:46,080 Every category. Material science, Physics, Math, 982 00:45:46,560 --> 00:45:48,960 Computational science. They do not have the 983 00:45:48,960 --> 00:45:51,440 walkification of education that happened 12 years ago. 984 00:45:51,440 --> 00:45:53,640 I think, you know, people talk about a pipeline problem. 985 00:45:53,840 --> 00:45:56,960 I think part of the issue is like something really happened 986 00:45:56,960 --> 00:46:00,120 to like American SAT scores starting around 2013 or so. 987 00:46:00,120 --> 00:46:03,960 You can see like, you know, them kind of drop off like this among 988 00:46:03,960 --> 00:46:06,200 especially among like white American kids, right? 989 00:46:06,200 --> 00:46:10,160 It kind of just drops off. And I think wocification is part 990 00:46:10,160 --> 00:46:11,960 of it. Like why now 10 years later, 991 00:46:11,960 --> 00:46:13,800 there's grads who are less there. 992 00:46:13,800 --> 00:46:16,880 Others will blame it on phones. One of the things, by the way, 993 00:46:16,880 --> 00:46:21,160 that's going to be a big thing the the anti tech movement in 994 00:46:21,160 --> 00:46:24,120 the US is going to be very big because the left is against 995 00:46:24,120 --> 00:46:25,920 capitalists. The right isn't as fond of 996 00:46:25,920 --> 00:46:29,240 immigrants nowadays. And the center, like Jonathan 997 00:46:29,240 --> 00:46:31,120 Haidt, who I like, he's a, he's a smart guy. 998 00:46:31,400 --> 00:46:33,560 Jonathan Haidt, Summit and Derek Thompson, other guys like this 999 00:46:33,560 --> 00:46:35,600 are starting to blame it all on the phones, right? 1000 00:46:36,080 --> 00:46:38,200 And in fact, there's even tech people who are like, oh, tech is 1001 00:46:38,200 --> 00:46:39,720 bad. I mean, AI is the new climate 1002 00:46:39,720 --> 00:46:41,040 change. Yeah, exactly right. 1003 00:46:41,040 --> 00:46:42,880 So right. But the issue is, and actually 1004 00:46:42,880 --> 00:46:48,120 here's I think a point which is post libertarian, OK, if you. 1005 00:46:48,680 --> 00:46:50,720 I like this frontier of post libertarianism. 1006 00:46:51,080 --> 00:46:53,040 Which is accepting all the premise of libertarians and then 1007 00:46:53,040 --> 00:46:58,720 say what's next, right? So the moderated Internet like 1 1008 00:46:58,720 --> 00:47:00,480 thesis is. By the way, I want to come back 1009 00:47:00,480 --> 00:47:03,480 to China, but. Yeah, so one thesis is the 1010 00:47:03,640 --> 00:47:06,040 unmoderated Internet is a problem, not the Internet. 1011 00:47:06,560 --> 00:47:09,000 So the question is, what does it mean for a moderate Internet? 1012 00:47:09,000 --> 00:47:10,960 So China has a moderated Internet, right? 1013 00:47:11,240 --> 00:47:14,960 Because of that, they won't have millions of people cheering an 1014 00:47:14,960 --> 00:47:16,480 assassination or something like that. 1015 00:47:16,680 --> 00:47:19,680 They won't have drones being scripted on their soil, right? 1016 00:47:19,680 --> 00:47:21,760 Because they can just block an intraday at the firewall level. 1017 00:47:22,120 --> 00:47:24,160 They have this concept digital borders they actually think is 1018 00:47:24,160 --> 00:47:26,200 ahead of its time where they think they treat the digital as 1019 00:47:26,200 --> 00:47:28,760 being on par with a physical. And they're also insulated from 1020 00:47:28,760 --> 00:47:30,840 a lot of the chaos in the Western world because everybody 1021 00:47:30,840 --> 00:47:32,160 speaks Chinese. They're only listening to 1022 00:47:32,160 --> 00:47:34,200 Chinese stuff, and all that stuff is coming through 1023 00:47:34,200 --> 00:47:36,080 translation and most people aren't paying attention to it. 1024 00:47:36,080 --> 00:47:38,440 It's like seeing a war and everybody's yelling in Arabic 1025 00:47:38,440 --> 00:47:40,880 and you know you're not paying attention to in the same way. 1026 00:47:41,080 --> 00:47:43,400 Whereas the Ukraine war, people were yelling in English and 1027 00:47:43,400 --> 00:47:44,800 people were more empathetic to it, right? 1028 00:47:45,200 --> 00:47:47,680 So China's insulated from all the chaos of the world in many 1029 00:47:47,680 --> 00:47:49,560 ways by this border they've built. 1030 00:47:51,080 --> 00:47:53,120 And I think that is underestimated in terms of how 1031 00:47:53,120 --> 00:47:56,760 much stability it gives them. But the problem is that for the 1032 00:47:56,840 --> 00:47:58,760 Western mindset, they'll immediately say, well, I didn't 1033 00:47:58,760 --> 00:48:01,760 consent to that moderation given that we've just been through 1034 00:48:01,760 --> 00:48:04,680 four or five years where we had to fight for free speech in the 1035 00:48:04,680 --> 00:48:08,000 Western context, right? So I think that the thesis 1036 00:48:08,000 --> 00:48:12,920 antithesis, synthesis is consensual moderation, opt in to 1037 00:48:12,920 --> 00:48:16,000 a society because in the absence of moderation, you get American 1038 00:48:16,000 --> 00:48:18,200 anarchy. In the presence of non 1039 00:48:18,200 --> 00:48:20,160 consensual moderation you get Chinese control. 1040 00:48:20,720 --> 00:48:24,040 But the third concept, the Internet intermediate, is you 1041 00:48:24,160 --> 00:48:26,080 opt into constraints. Why doesn't choice work? 1042 00:48:26,440 --> 00:48:27,960 Why doesn't choice? That is what it this choice. 1043 00:48:27,960 --> 00:48:29,640 Is, yeah, but I mean. Like why is? 1044 00:48:29,720 --> 00:48:33,280 Why is, why isn't the American system necessarily anarchy in 1045 00:48:33,280 --> 00:48:37,600 the sense that like, like 'cause I, I can watch a conservative 1046 00:48:37,720 --> 00:48:40,800 media, I can watch a liberal media, I can watch an 1047 00:48:40,800 --> 00:48:42,720 independent media, I, I have choice. 1048 00:48:43,400 --> 00:48:46,120 And So what drives my orientation to aggregate? 1049 00:48:46,120 --> 00:48:49,800 What drives power accumulation in media when there's a 1050 00:48:49,800 --> 00:48:52,360 multiplicity of options? I'll give several. 1051 00:48:52,360 --> 00:48:56,080 So this is basically going to be like, this is the argument that 1052 00:48:56,080 --> 00:48:58,520 is going to be had for the next whatever number of years, right? 1053 00:48:59,280 --> 00:49:02,160 But let me give an argument as to why American anarchy won't be 1054 00:49:02,160 --> 00:49:05,120 desirable. The the very simple argument is 1055 00:49:05,120 --> 00:49:08,480 going to be the mass exodus of Americans from America. 1056 00:49:08,760 --> 00:49:10,960 Like that's already happening. It's, it's, you're seeing it in 1057 00:49:10,960 --> 00:49:12,320 Europe. It's happening first in Europe 1058 00:49:12,560 --> 00:49:15,080 because Europe and America are not like separate entities. 1059 00:49:15,080 --> 00:49:17,760 The G7 is all having sovereign debt crisis at the same time. 1060 00:49:18,000 --> 00:49:20,840 Lots of Brits have left Britain, so many French have left France 1061 00:49:20,840 --> 00:49:24,120 that they're trying to pass this Zuckman exit tax where it's 1062 00:49:24,120 --> 00:49:26,280 like, no, it's a wealth tax. Like it's a wealth tax more than 1063 00:49:26,280 --> 00:49:28,480 €2 million. You're taxed some crazy amount. 1064 00:49:28,880 --> 00:49:32,200 So essentially the more people leave, the more grabby the state 1065 00:49:32,200 --> 00:49:35,160 gets, which makes more people leave and it's a negative 1066 00:49:35,160 --> 00:49:37,840 feedback loop and and eventually everyone's going to get super 1067 00:49:37,840 --> 00:49:38,800 mad. This is when the original 1068 00:49:38,800 --> 00:49:40,440 feedback loop pops and and the reverse. 1069 00:49:40,440 --> 00:49:42,920 Happens yes and very few people understand the history of 1070 00:49:42,920 --> 00:49:46,760 communist societies like the reason the Berlin Wall was built 1071 00:49:46,800 --> 00:49:49,920 is that all of these people left communist East Germany for West 1072 00:49:49,920 --> 00:49:52,520 Germany and then eventually the East German government was 1073 00:49:52,520 --> 00:49:54,840 getting embarrassed by this or losing all their doctors and so 1074 00:49:54,840 --> 00:49:56,200 on and they said is. Mom Donnie going to build a New 1075 00:49:56,200 --> 00:49:58,200 York wall. A digital. 1076 00:49:58,200 --> 00:49:59,480 Version digital law. Why? 1077 00:49:59,480 --> 00:50:02,360 Because tax ex exactly. Exit tax. 1078 00:50:02,360 --> 00:50:03,600 That's absolutely going to come, right? 1079 00:50:04,000 --> 00:50:05,880 They've already passed something like or not passed. 1080 00:50:05,880 --> 00:50:08,880 They've proposed, if I get it right, there's there's some 1081 00:50:08,880 --> 00:50:14,080 referendum in California where if it passes in 2026, it was 1082 00:50:14,080 --> 00:50:20,200 proposed on some date in 2025 and every like you know 1 of 200 1083 00:50:20,200 --> 00:50:22,640 billionaires who is resident in the state and they have a list 1084 00:50:22,760 --> 00:50:25,040 right with the 200 billionaires who is resident in the state in 1085 00:50:25,040 --> 00:50:31,320 2025, they have to pay a 5% net worth. 1086 00:50:31,320 --> 00:50:32,320 Yeah, it's called the villain. Tax. 1087 00:50:32,360 --> 00:50:34,840 I read the one time tax. Right one time tax 2026. 1088 00:50:35,240 --> 00:50:37,440 But but here's the thing. It is designed. 1089 00:50:37,520 --> 00:50:41,320 First of all, it's a it's a very bad like it's, it's like this 1090 00:50:41,320 --> 00:50:44,160 crazy Iran villain kind of thing for several reasons. 1091 00:50:44,600 --> 00:50:48,280 First is it's evidently passed by a referendum in 2026 that's 1092 00:50:48,280 --> 00:50:51,720 binding on 2025 and. It's a constitutional amendment. 1093 00:50:52,000 --> 00:50:55,160 Right. And so if the price of that exit 1094 00:50:55,160 --> 00:50:59,080 tax is set on the price of the assets in the year 2025, but the 1095 00:50:59,080 --> 00:51:03,360 value of the assets drops in 2026, it could be 2030% of their 1096 00:51:03,360 --> 00:51:05,520 assets they have to liquidate. Now these are billionaires, 1097 00:51:05,680 --> 00:51:07,920 which means they're running big companies, which means that 1098 00:51:07,920 --> 00:51:11,680 there's an obligate liquidation event where at as soon as that 1099 00:51:11,680 --> 00:51:15,000 bill was proposed, these 200 offices of these, you know, guys 1100 00:51:15,000 --> 00:51:17,120 who are running major companies include ZOC and so on and so 1101 00:51:17,120 --> 00:51:20,800 forth, are asking, does ZOC need to let, I don't know what this 1102 00:51:20,800 --> 00:51:22,040 fortune is? Let's say it's 100 billion, 1103 00:51:22,040 --> 00:51:25,040 right? Does ZOC need to sell $5 billion 1104 00:51:25,040 --> 00:51:29,640 of Meta stock in order to have the cash on hand in case this 1105 00:51:29,640 --> 00:51:34,800 bill goes through next year? So almost with certainty, some 1106 00:51:34,800 --> 00:51:36,400 of those several 100 billionaires will have to do 1107 00:51:36,400 --> 00:51:39,920 mass liquidations of mass amounts of stock this year, 1108 00:51:40,240 --> 00:51:44,440 crashing the market, just in case that bill passes next year, 1109 00:51:44,600 --> 00:51:45,480 right? Tax the rich? 1110 00:51:45,480 --> 00:51:46,480 What do you mean? What's the problem? 1111 00:51:46,480 --> 00:51:47,760 Yeah, exactly. We're trying to. 1112 00:51:48,720 --> 00:51:53,160 Eat the rich doesn't bother me. I'm just so I'm all for it, you 1113 00:51:53,280 --> 00:51:54,760 know? Once it hits my number then I'll 1114 00:51:54,760 --> 00:51:58,080 pay attention, OK? But by the way, the equip tax in 1115 00:51:58,080 --> 00:51:59,920 the US is also set up supposedly only for the. 1116 00:51:59,920 --> 00:52:02,840 Rich, it was for the rich 1% and it's like would never hit me. 1117 00:52:02,920 --> 00:52:05,480 That's right. Now it's like 40% if you make 60 1118 00:52:05,480 --> 00:52:06,440 KA year. That's right. 1119 00:52:06,880 --> 00:52:09,200 And with inflation, everybody becomes a millionaire and then a 1120 00:52:09,200 --> 00:52:10,680 billionaire, right? Exactly so. 1121 00:52:11,040 --> 00:52:14,640 This is what I was saying. It's not miles and or meters in 1122 00:52:14,640 --> 00:52:17,840 kilometers, it's gallons and oz. Like what are we really talking 1123 00:52:17,840 --> 00:52:18,520 about? That's right. 1124 00:52:18,560 --> 00:52:21,840 So if we take if we take America and Europe and actually Japan as 1125 00:52:21,840 --> 00:52:25,800 one whole, all of them, the US, the UK, Italy, Germany, France, 1126 00:52:25,800 --> 00:52:29,120 Japan, they're all seeing yields soar like this as Chinese yields 1127 00:52:29,120 --> 00:52:32,200 are going down like this, right? And so that means people are 1128 00:52:32,320 --> 00:52:35,720 selling Treasuries, right? They're buying Chinese bonds, 1129 00:52:35,840 --> 00:52:37,320 they're buying gold, they're buying digital gold. 1130 00:52:37,680 --> 00:52:38,720 Yeah, exactly. That's right. 1131 00:52:38,960 --> 00:52:43,840 So that is the sun setting of the of of the American empire 1132 00:52:43,880 --> 00:52:46,480 basically, right. And and I think that. 1133 00:52:46,960 --> 00:52:50,160 OK, so let's be optimistic. OK, so, so our friends in this 1134 00:52:50,160 --> 00:52:53,440 administration, right, of which there are a lot of tech friends. 1135 00:52:53,480 --> 00:52:55,440 I I love these guys. Progressive, yes. 1136 00:52:55,680 --> 00:52:59,640 Working their asses off. Yes, optimistic, optimistic and 1137 00:52:59,640 --> 00:53:01,080 our friends in the private. Market, OK. 1138 00:53:01,240 --> 00:53:01,600 What? What? 1139 00:53:01,640 --> 00:53:02,680 What would they do? OK. 1140 00:53:03,120 --> 00:53:05,920 And what? So let's say you weren't 1141 00:53:05,920 --> 00:53:09,560 building network school network state activities, and you were 1142 00:53:09,560 --> 00:53:12,760 put in the seat and you had imperial authority. 1143 00:53:13,760 --> 00:53:16,480 Save the American Empire. Save the American Republic. 1144 00:53:16,720 --> 00:53:19,560 OK, so let's say. Without. 1145 00:53:19,560 --> 00:53:21,080 Without a revolution where everyone's like. 1146 00:53:21,080 --> 00:53:24,520 Totally, totally sorry. So let me give the preface that 1147 00:53:24,520 --> 00:53:27,560 we were asking you to do is be like Gorbachev or Yeltsin, OK? 1148 00:53:27,840 --> 00:53:31,640 So that's to say. This administration is willing 1149 00:53:31,640 --> 00:53:34,120 to take aggressive action. Fine, fine, fine. 1150 00:53:34,120 --> 00:53:35,200 So I. Take it all the way to the 1151 00:53:35,200 --> 00:53:36,960 Supreme Court every single time. So. 1152 00:53:36,960 --> 00:53:38,120 And here's. To ensure that they can take the 1153 00:53:38,120 --> 00:53:38,800 action. Here we go. 1154 00:53:38,800 --> 00:53:44,000 So a freedom cities, right? Establish basically there is 1155 00:53:44,160 --> 00:53:49,440 Trump has spoken about this establish bills where states can 1156 00:53:49,440 --> 00:53:53,120 designate special economic zones or a version of that, the 1157 00:53:53,120 --> 00:53:55,760 Americanized version, special Elon zones, right? 1158 00:53:55,920 --> 00:53:58,160 Not specifically for Elon, but could be a Palmer Luckey zone 1159 00:53:58,160 --> 00:54:00,160 for drones. It could be an Elon zone for 1160 00:54:00,160 --> 00:54:03,280 robots. It could be, you know, zone for 1161 00:54:03,280 --> 00:54:05,720 biotech, right? For alumina, for example, right? 1162 00:54:06,000 --> 00:54:10,200 All of these different zones, which once they're there, 1163 00:54:10,200 --> 00:54:13,400 remember the thing about having like states bring local funding 1164 00:54:13,400 --> 00:54:16,080 to them right? Now, once you've got a center of 1165 00:54:16,080 --> 00:54:20,000 excellence and let's say it's in Pittsburgh, OK? 1166 00:54:20,000 --> 00:54:22,480 Or let's say it's some RedState where the governor and so on are 1167 00:54:22,480 --> 00:54:25,880 friendly to you, right? We just saw one in Akron, OH. 1168 00:54:26,200 --> 00:54:27,760 Great. OK, so let let's say, let's say 1169 00:54:27,760 --> 00:54:31,760 it's Texas. OK, so Texas, you, you have, you 1170 00:54:31,760 --> 00:54:35,640 know, University of Texas and you have Texas State government 1171 00:54:35,720 --> 00:54:37,640 and you have quite a few entrepreneurs in Austin and so 1172 00:54:37,640 --> 00:54:38,560 on. And you have Starbase. 1173 00:54:39,000 --> 00:54:41,760 And so let's say it's a manufacturing zone, OK. 1174 00:54:41,760 --> 00:54:43,880 And you know Burning Man where there's just absolutely nothing 1175 00:54:43,880 --> 00:54:47,040 there, right? The less desirable the land is, 1176 00:54:47,200 --> 00:54:50,920 the more desirable the land is. The reason is because nobody 1177 00:54:50,920 --> 00:54:53,520 cares about no incumbency. Yeah, there's no incumbency. 1178 00:54:53,520 --> 00:54:56,480 No, you take drone shots of it, you show how completely barren 1179 00:54:56,480 --> 00:54:59,680 it was, Right? So then you fence it off, OK. 1180 00:55:00,080 --> 00:55:03,640 And then you essentially admit people into this fractal 1181 00:55:03,640 --> 00:55:06,720 frontier, and they're signing away a contract. 1182 00:55:06,720 --> 00:55:08,680 And basically, you have new regulations here. 1183 00:55:08,880 --> 00:55:11,640 There's no OSHA, there's no EPA, There's none of this stuff, 1184 00:55:11,680 --> 00:55:14,440 right? And you have to figure out what 1185 00:55:14,440 --> 00:55:17,320 pollution laws there are, what labor laws there are. 1186 00:55:17,320 --> 00:55:19,240 You have to have some sensible rules, right? 1187 00:55:19,440 --> 00:55:21,560 Necessarily deregulated is critical. 1188 00:55:21,600 --> 00:55:23,080 Exactly. Minimum necessary. 1189 00:55:23,080 --> 00:55:25,120 Finding a mechanism, but ultimately deregulated. 1190 00:55:25,120 --> 00:55:28,840 Yeah, so the key thing is to be clear, you're not going from 1191 00:55:30,720 --> 00:55:33,160 insane bureaucracy to total anarchy. 1192 00:55:33,480 --> 00:55:36,480 Instead, what you're saying is clearly these laws have been 1193 00:55:36,480 --> 00:55:41,280 abused, but clearly also there was some good intent at some 1194 00:55:41,280 --> 00:55:44,080 point behind them. So therefore how do we preserve 1195 00:55:44,080 --> 00:55:46,400 the spirit with the minimum necessary edits, Right? 1196 00:55:46,840 --> 00:55:50,200 And often the answer is to have it supervised by let's say Texas 1197 00:55:50,200 --> 00:55:51,640 State as opposed to the federal government. 1198 00:55:51,640 --> 00:55:54,720 Simply having regulatory competition works wonders. 1199 00:55:54,760 --> 00:55:56,760 This is actually one of the secrets of the Chinese system. 1200 00:55:57,000 --> 00:55:58,440 They have competition between states. 1201 00:55:58,760 --> 00:56:00,760 When the American system was working, it was a laboratory of 1202 00:56:00,760 --> 00:56:01,840 the states. You had federalism. 1203 00:56:02,040 --> 00:56:04,640 Once it became too centralized, as you point out, then that went 1204 00:56:04,640 --> 00:56:07,320 away, right? So really we're saying restore 1205 00:56:07,320 --> 00:56:10,120 the 10th Amendment, right? Bring back competition. 1206 00:56:10,120 --> 00:56:12,240 All rights, not reserves. The federal government go back 1207 00:56:12,240 --> 00:56:15,320 to the states, right? So 10th Amendment activists or 1208 00:56:15,320 --> 00:56:17,360 even more important than First or Second Amendment activists, 1209 00:56:17,400 --> 00:56:20,320 OK, right. So moreover, you're not going to 1210 00:56:20,320 --> 00:56:21,920 get resistance from the Democrats on this. 1211 00:56:21,960 --> 00:56:24,240 Why? Because they're doing the Blues 1212 00:56:24,240 --> 00:56:26,720 are doing soft secession, right? They've talked about this their 1213 00:56:26,720 --> 00:56:27,400 own. States. 1214 00:56:27,400 --> 00:56:29,720 That's right. So finally you've got an open 1215 00:56:29,720 --> 00:56:32,080 door where if you do think Blues are going to get back power, 1216 00:56:32,080 --> 00:56:36,280 which they probably may, it's at least partially right, You have 1217 00:56:36,280 --> 00:56:38,760 an open door where they're actually also agreeing on this, 1218 00:56:39,000 --> 00:56:41,160 where you can push through 10th of them and 10th of them and 1219 00:56:41,160 --> 00:56:43,600 establish facts on the ground. Like the moment you have 1220 00:56:43,880 --> 00:56:46,560 factories there, you have buildings there, you have a 1221 00:56:46,560 --> 00:56:51,120 regulatory authority that was granted to UT and to, you know, 1222 00:56:51,120 --> 00:56:54,000 local texts, entrepreneurs and scientists and so on. 1223 00:56:54,000 --> 00:56:55,880 And when they have authority that supersedes out of the 1224 00:56:55,880 --> 00:57:01,880 federal government, it's very hard for the next FDA or EPA to 1225 00:57:01,880 --> 00:57:03,920 come in and say you don't have that when it's in like 10 1226 00:57:03,920 --> 00:57:06,880 different places at once, right? You just smash the triforce into 1227 00:57:06,880 --> 00:57:09,920 pieces and you distribute it to the individual states, right? 1228 00:57:10,640 --> 00:57:12,000 This is the only thing I'd focus on. 1229 00:57:12,120 --> 00:57:15,920 Yeah, decentralization, right. And the reason is now you've got 1230 00:57:15,920 --> 00:57:19,080 a fighting chance why those freedom cities will attract 1231 00:57:19,280 --> 00:57:23,880 capital, they'll attract talent. They will be secure because they 1232 00:57:23,880 --> 00:57:27,640 can be either. See, the one issue is states 1233 00:57:27,640 --> 00:57:29,240 don't have secure borders, right? 1234 00:57:29,360 --> 00:57:31,280 Why? Because of all the illegal 1235 00:57:31,280 --> 00:57:34,480 aliens and so on and so forth. But on private property, even in 1236 00:57:34,480 --> 00:57:37,560 San Francisco, it is still allowed to, you know, for a 1237 00:57:37,560 --> 00:57:39,520 reason. You can't get a homeless drug 1238 00:57:39,520 --> 00:57:42,800 addict out of your, you know, like garage, like like your, 1239 00:57:42,800 --> 00:57:48,200 your door sill in a, in a, in a restaurant in San Francisco, 1240 00:57:48,200 --> 00:57:49,560 they can be like sleeping in your door sill. 1241 00:57:49,560 --> 00:57:52,720 But if they're at if they're inside an office building, at 1242 00:57:52,720 --> 00:57:55,240 least private property is respected in a certain way, even 1243 00:57:55,240 --> 00:57:56,680 if public property is not, right. 1244 00:57:56,680 --> 00:57:59,600 It's just an idiosyncrasy of where America is today, right? 1245 00:57:59,920 --> 00:58:02,760 It may turn out, by the way, that in blue states, that last 1246 00:58:02,760 --> 00:58:05,800 barrier falls right and they let the homeless squat because the. 1247 00:58:05,800 --> 00:58:07,120 Squatting laws. There's a lot of squatting laws. 1248 00:58:07,280 --> 00:58:08,080 Yeah, exactly. That's right. 1249 00:58:08,080 --> 00:58:09,960 So they just let the homeless squad in your garage. 1250 00:58:10,200 --> 00:58:13,480 They, you know, they, they, they let the legal aliens suicide, 1251 00:58:13,480 --> 00:58:14,880 right. So it's possible in blue states 1252 00:58:14,880 --> 00:58:17,440 just completely goes away. But in red states at least, you 1253 00:58:17,440 --> 00:58:21,080 start with the sacrosanct nature of private property and you 1254 00:58:21,080 --> 00:58:24,600 start having these things and you can do something where some 1255 00:58:24,600 --> 00:58:27,480 significant fraction of the equity, by the way, even 51% 1256 00:58:27,480 --> 00:58:29,480 like non voting stake or something like that goes to the 1257 00:58:29,480 --> 00:58:31,640 people of Texas or something along these lines. 1258 00:58:31,840 --> 00:58:34,200 So they're all getting a cut you could put on the blockchain so 1259 00:58:34,200 --> 00:58:35,640 they know exactly how much they're getting. 1260 00:58:35,640 --> 00:58:37,840 If it's like because you can micro allocate like 50 bucks or 1261 00:58:37,840 --> 00:58:40,000 what have you. So you make it rain for 1262 00:58:40,000 --> 00:58:42,880 individual Texans, right? Because if it's a billion 1263 00:58:42,880 --> 00:58:44,400 dollars, like what's the population in Texas? 1264 00:58:44,680 --> 00:58:47,760 It's like 30 million, I think something that's right, right. 1265 00:58:48,040 --> 00:58:51,080 So a billion dollars, that's actually, you know, that's 1266 00:58:51,080 --> 00:58:55,240 pretty good, right? If it's, if you're getting 100 1267 00:58:55,240 --> 00:58:57,080 bucks to every person in the state, if you're getting 1268 00:58:57,080 --> 00:59:00,600 jittering 3 billion a year from this, like it's actually kind of 1269 00:59:00,600 --> 00:59:02,400 amazing. Or I mean, do you really need to 1270 00:59:02,480 --> 00:59:05,320 if suddenly job growth, I mean, this is the economic forces, 1271 00:59:05,320 --> 00:59:07,240 Well, well. I, I think you do. 1272 00:59:07,280 --> 00:59:10,960 And the reason I think you do is I think it is surprising to me 1273 00:59:10,960 --> 00:59:14,880 how much people even having 100 bucks a Bitcoin gave them a 1274 00:59:14,880 --> 00:59:17,880 rooting interest in Bitcoin. It's like actually crazy how 1275 00:59:17,880 --> 00:59:19,840 much it really changed their kind of impression. 1276 00:59:21,120 --> 00:59:25,800 So if you have like everybody holding like a. 100 bucks so the 1277 00:59:25,800 --> 00:59:28,960 freedom cities. Freedom cities, 10th Amendment 1278 00:59:29,440 --> 00:59:31,720 special economic zones. Well, and the deregulation is 1279 00:59:31,720 --> 00:59:34,240 it's more than a small thing. It's actually if you want no 1280 00:59:34,240 --> 00:59:36,120 reindustrialization without deregulation. 1281 00:59:36,160 --> 00:59:39,120 Why? Because the problem is not like 1282 00:59:39,440 --> 00:59:42,120 the the difference between regulation and taxes very, very 1283 00:59:42,120 --> 00:59:45,560 important. Why or tariffs attacks is 1284 00:59:45,600 --> 00:59:47,640 continuous? By the way, can you pull up the 1285 00:59:47,640 --> 00:59:52,040 chart of Chinas nuclear cost versus the US? 1286 00:59:52,040 --> 00:59:53,760 Nuclear cost. Crazy thing, I think. 1287 00:59:53,880 --> 00:59:57,000 We should look at that. So that shows that like 1288 00:59:57,280 --> 01:00:01,000 basically. And this, this speaks to the, 1289 01:00:01,120 --> 01:00:03,720 the, the importance of D, right? Because I think ultimately the 1290 01:00:03,720 --> 01:00:07,000 most and, and everyone can argue all day with about solar, which 1291 01:00:07,160 --> 01:00:09,200 is fine, but put solar to the side. 1292 01:00:09,320 --> 01:00:12,040 The scalability of power production with nuclear is 1293 01:00:12,040 --> 01:00:14,520 extraordinary. If you can get speed up cost 1294 01:00:14,520 --> 01:00:17,480 down, which China has done. So they have I think 400 nuclear 1295 01:00:17,480 --> 01:00:19,680 reactor sites in construction right now. 1296 01:00:19,680 --> 01:00:22,080 You're trying to think about each one of those being one, 1297 01:00:22,360 --> 01:00:25,720 maybe 1 1/2 gigawatts. Suddenly that's 60%. 1298 01:00:26,240 --> 01:00:29,560 Of the US power production capacity being built right now 1299 01:00:29,560 --> 01:00:30,880 in just nuclear by China. Yep. 1300 01:00:31,400 --> 01:00:34,520 And then you add on the Gen. 4 systems, which they demonstrated 1301 01:00:34,520 --> 01:00:37,320 2 years ago, which are honestly engineering marvels. 1302 01:00:37,320 --> 01:00:39,520 They're incredible. This is like the graphite balls. 1303 01:00:39,680 --> 01:00:42,600 They're really in a cone, right? And it's helium gas that heats 1304 01:00:42,600 --> 01:00:44,800 up and so there's no meltdown risk. 1305 01:00:45,040 --> 01:00:47,120 It's totally safe. The graphite balls can't 1306 01:00:47,120 --> 01:00:50,120 overheat. I mean, nothing about it is it's 1307 01:00:50,120 --> 01:00:52,680 designed to be stable. It's designed to have like 1308 01:00:52,680 --> 01:00:54,800 everything breaks, no one's around, nothing happens. 1309 01:00:56,200 --> 01:00:59,960 And the efficiency to build it is like if you look at the raw 1310 01:00:59,960 --> 01:01:02,560 material cost, it's nothing. Like it's so little. 1311 01:01:03,320 --> 01:01:05,880 And then obviously they just put their first thorium molten salt 1312 01:01:05,880 --> 01:01:10,200 reactor into production into turn the power on this week. 1313 01:01:11,000 --> 01:01:15,440 Yeah, so and then and then they have been saying like reserves 1314 01:01:15,440 --> 01:01:18,360 in Thorium, right, like 10,000 years, 100,000 or 10 million 1315 01:01:18,360 --> 01:01:19,680 years, whatever the number is, it's insane. 1316 01:01:19,680 --> 01:01:23,840 There's a Saudi Arabia. Of thorium and they found a load 1317 01:01:23,840 --> 01:01:28,800 in China. So anyway, so the point is like 1318 01:01:28,800 --> 01:01:31,680 because they've enabled and unleashed. 1319 01:01:32,560 --> 01:01:33,760 This shows it's physically. Possible. 1320 01:01:33,760 --> 01:01:36,560 It's physically possible, and the raw material cost is a 1321 01:01:36,560 --> 01:01:38,080 fraction of what you're seeing here. 1322 01:01:38,240 --> 01:01:41,640 There's still a heavy regulatory cost here, but the exponential, 1323 01:01:41,800 --> 01:01:44,520 like the compounding effects of the regulatory processes in the 1324 01:01:44,520 --> 01:01:46,120 United States, is what's driven these. 1325 01:01:46,120 --> 01:01:48,080 Costs, absolutely. And that includes like 1326 01:01:48,480 --> 01:01:50,680 regulatory and labor laboratory and material laboratory, 1327 01:01:50,840 --> 01:01:55,240 regulatory and in sourcing, environmental, et cetera, none 1328 01:01:55,240 --> 01:01:59,640 of which, you know, on their own you could point to and say this 1329 01:01:59,640 --> 01:02:01,360 is fundamentally the problem. But like, let me ask you the 1330 01:02:01,360 --> 01:02:03,120 question. So now the federal government is 1331 01:02:03,120 --> 01:02:04,960 taking action. Our, our Trump administration 1332 01:02:04,960 --> 01:02:10,320 friends are taking action to say we want to take an active role 1333 01:02:10,560 --> 01:02:12,600 in driving these outcomes. So they're putting capital into 1334 01:02:12,600 --> 01:02:14,240 businesses. Capital doesn't matter. 1335 01:02:14,400 --> 01:02:17,280 And here's my argument. Like the entire thought that 1336 01:02:17,280 --> 01:02:19,280 this thing is capital limited is wrong. 1337 01:02:19,760 --> 01:02:25,760 And the reason it's threefold, first is regulation is like a 01 1338 01:02:25,760 --> 01:02:27,360 as to whether something is possible or not. 1339 01:02:27,960 --> 01:02:32,920 And you know, for example, like can you do your body your choice 1340 01:02:32,920 --> 01:02:34,800 in biomedicine? Like can somebody take a drug or 1341 01:02:34,800 --> 01:02:36,200 not? No, you have to go through this 1342 01:02:36,200 --> 01:02:38,120 entire FDA process that's multiple years. 1343 01:02:38,320 --> 01:02:41,200 That is not how Banting and Best developed insulin, for example, 1344 01:02:41,200 --> 01:02:43,640 right? Do the Wright brothers get FAA 1345 01:02:43,640 --> 01:02:46,640 approval before they flew? No, if they didn't exist. 1346 01:02:46,680 --> 01:02:48,480 Right. Like if you actually go back 1347 01:02:48,480 --> 01:02:49,680 and. Did Uber get a taxi cab 1348 01:02:49,680 --> 01:02:51,200 medallion? Yeah, exactly. 1349 01:02:51,200 --> 01:02:53,600 That's right. So, so this entire process of, 1350 01:02:53,840 --> 01:02:57,080 you know, regulatory, you know, Croft that's accumulated on 1351 01:02:57,080 --> 01:02:59,920 things. What you want is zones where you 1352 01:02:59,920 --> 01:03:01,840 can move at the speed of physics, not permits. 1353 01:03:02,400 --> 01:03:06,080 And then you just have somebody exercise their judgement in that 1354 01:03:06,080 --> 01:03:10,840 area and and you, you have a large quote, I don't know, blast 1355 01:03:10,840 --> 01:03:12,880 radius if you want. I mean, for the most part, 1356 01:03:12,880 --> 01:03:16,000 nothing is going to go wrong in the sense I should say nothing 1357 01:03:16,000 --> 01:03:17,120 will go wrong. Let me clarify that. 1358 01:03:17,520 --> 01:03:19,400 There will be risks. Lots of things will go wrong, 1359 01:03:19,440 --> 01:03:20,720 right? Because just when you're 1360 01:03:20,720 --> 01:03:22,080 pioneering, things will go wrong. 1361 01:03:22,280 --> 01:03:24,600 But everybody in the zone takes those risks, right? 1362 01:03:24,800 --> 01:03:27,600 No plane crashes, no planes, no train crashes, no trains. 1363 01:03:28,000 --> 01:03:31,600 And if there weren't any, you know, like large effect size 1364 01:03:31,600 --> 01:03:33,680 drugs, there'd be no side effects, right? 1365 01:03:34,000 --> 01:03:38,360 So these zones are the risk tolerance zones, the frontier 1366 01:03:38,360 --> 01:03:40,360 zones, the fractal frontier, bring it back to the earlier 1367 01:03:40,360 --> 01:03:43,080 piece, right? And the deregulation is there, 1368 01:03:43,120 --> 01:03:46,400 like as an example, the NSF acceptable Use policy. 1369 01:03:46,400 --> 01:03:49,520 You know what that is? Acceptable use policy? 1370 01:03:49,520 --> 01:03:51,800 I don't know. This is actually one of the most 1371 01:03:51,800 --> 01:03:53,680 important acts of deregulation ever. 1372 01:03:53,680 --> 01:03:56,080 Why? Here's why. 1373 01:03:56,080 --> 01:04:01,960 Until 1991 or 199991, the National Science Foundation had 1374 01:04:01,960 --> 01:04:05,640 an acceptable use policy that only allowed use of the Internet 1375 01:04:05,640 --> 01:04:09,480 for academic and military and educational use. 1376 01:04:09,480 --> 01:04:11,840 Right. Because remember, it was 1377 01:04:11,840 --> 01:04:13,760 developed as the interim was developed as something that get 1378 01:04:13,840 --> 01:04:15,520 hit by a nuke and still survive, right? 1379 01:04:15,960 --> 01:04:18,840 And it was like an educational network between universities and 1380 01:04:18,840 --> 01:04:21,560 stuff like that. And there's this debate as to 1381 01:04:21,560 --> 01:04:22,960 whether to allow commercial traffic. 1382 01:04:22,960 --> 01:04:26,000 And they said, no, if we allow commercial traffic, it'll be 1383 01:04:26,000 --> 01:04:29,320 malware and spams and scams and porn and so on and so forth. 1384 01:04:29,320 --> 01:04:31,360 And of course they were right. They didn't get all of that. 1385 01:04:31,640 --> 01:04:35,560 But basically with the fall of communism also was the rise of 1386 01:04:35,560 --> 01:04:37,480 Internet capitalism in that year. 1387 01:04:37,480 --> 01:04:41,240 In that period, you had the repeal of the acceptable use 1388 01:04:41,240 --> 01:04:43,760 policy and the legalization of commercial Internet traffic, 1389 01:04:43,960 --> 01:04:48,120 which beganthe.com era, right, which led to the last 30 1390 01:04:48,120 --> 01:04:50,160 something years. So that's a great example of a 1391 01:04:50,160 --> 01:04:53,160 01. No amount of capital would have 1392 01:04:53,160 --> 01:04:56,800 solved a ban, right? Another example is, in a sense, 1393 01:04:56,800 --> 01:05:00,160 what was just holding back China was regulation in the sense of 1394 01:05:00,160 --> 01:05:01,720 the death penalty for capitalism. 1395 01:05:01,720 --> 01:05:04,720 Like pre Deng Xiaoping, you'd get executed for practicing 1396 01:05:04,720 --> 01:05:07,440 capitalism, right? So all the focus on tariffs and 1397 01:05:07,440 --> 01:05:09,680 taxes, the reason I think that's wrong in my view, tariffs, 1398 01:05:09,680 --> 01:05:13,440 taxes, capital is wrong because that's just a percentage like 1399 01:05:13,840 --> 01:05:17,240 for, you know, if I'm selling a widget for 100 bucks, you know, 1400 01:05:17,240 --> 01:05:20,480 maybe lower taxes, it goes from a 10% to 5%. 1401 01:05:20,480 --> 01:05:23,120 That's an optimization on the margin or, or even a tariff. 1402 01:05:23,360 --> 01:05:26,080 Okay, maybe I get a little bit more of the market and I get, 1403 01:05:26,320 --> 01:05:30,040 you know, a 10% bump in my revenue, maybe if all goes and, 1404 01:05:30,040 --> 01:05:31,880 and that tariff has to be there for a long time and so on, 1405 01:05:31,880 --> 01:05:34,640 right? So tariffs and taxes and even 1406 01:05:34,640 --> 01:05:37,080 capital. The problem is the cost of 1407 01:05:37,080 --> 01:05:39,320 building things in the US is this graph shows as lost where 1408 01:05:39,320 --> 01:05:41,240 things go. It's not like 10% more than 1409 01:05:41,240 --> 01:05:42,560 China. It's like 100X more than China. 1410 01:05:42,560 --> 01:05:45,800 It's 100 X slower than China. The reason for all that is all 1411 01:05:45,800 --> 01:05:48,320 kinds of labyrinthine process in bureaucracy that you just have 1412 01:05:48,320 --> 01:05:53,760 to be able to scrap totally and look at exactly how just another 1413 01:05:53,760 --> 01:05:55,160 part about it is. And this is the hardest part, 1414 01:05:55,160 --> 01:05:57,920 honestly. Humility, like in the sense of 1415 01:05:58,400 --> 01:06:00,400 China's better in many ways in the physical world. 1416 01:06:00,680 --> 01:06:05,240 America can and should learn to copy China in a way of 1417 01:06:05,240 --> 01:06:07,720 recognizing they're ahead in there in many areas, right? 1418 01:06:08,120 --> 01:06:10,440 And you know, what's funny is actually in many of these last 1419 01:06:10,440 --> 01:06:13,000 10 years were implicitly about copying China. 1420 01:06:13,000 --> 01:06:16,320 You know why the Democrats tried to blink, censorship and so on 1421 01:06:16,320 --> 01:06:17,720 and so forth. The Republicans have tried to 1422 01:06:18,120 --> 01:06:20,880 implement industrialization, both of being obsessed with 1423 01:06:20,880 --> 01:06:24,120 Taiwan in many ways. It's sort of like, you know, 1424 01:06:24,120 --> 01:06:27,960 they've trying to be out China, China, but it's like a bad fit 1425 01:06:27,960 --> 01:06:30,600 on top of like the American chassis, you know, right. 1426 01:06:30,680 --> 01:06:37,280 One thing I hear a lot is China wants to beat or destroy 1427 01:06:37,280 --> 01:06:40,320 America. I don't think that's true what I 1428 01:06:40,320 --> 01:06:43,960 think, but but let me give a macro on why people think it's 1429 01:06:43,960 --> 01:06:46,400 true, right? So the V1 is essentially people 1430 01:06:46,400 --> 01:06:48,960 thinking that China is still Maoist, right? 1431 01:06:49,320 --> 01:06:52,680 Maoist Maoism was a particularly insane variety of communism. 1432 01:06:52,680 --> 01:06:56,360 It was like psycho even relative to Marxist Leninism, right? 1433 01:06:56,360 --> 01:06:59,440 This was like the agrarian, eat your eyeballs most psycho 1434 01:06:59,440 --> 01:07:02,600 version of communism, and it led to the Cambodia kill everybody 1435 01:07:02,600 --> 01:07:04,320 with glasses kind of stuff or whatever, right? 1436 01:07:05,760 --> 01:07:11,320 And then when Deng Xiaoping took over in 1978, he actually it was 1437 01:07:11,320 --> 01:07:15,720 basically a coup, OK? Because Mao's wife and the Gang 1438 01:07:15,720 --> 01:07:19,040 of Four and Mao's inherited successor, he basically put them 1439 01:07:19,040 --> 01:07:21,840 on trial, right? Because it was similar 1440 01:07:21,840 --> 01:07:23,200 culturally. The end of the Cultural 1441 01:07:23,200 --> 01:07:24,720 Revolution was similar to the end of openness. 1442 01:07:24,720 --> 01:07:26,960 Everybody was just tired of 10 years of absolute chaos and 1443 01:07:26,960 --> 01:07:28,840 pandemonium. And they're like, let's just 1444 01:07:28,840 --> 01:07:30,680 make money, right? Like, Cap, you know, we've done 1445 01:07:30,680 --> 01:07:33,120 this communism thing forever. The the issue is this. 1446 01:07:33,840 --> 01:07:38,240 Neither the communists nor the far left or the leftist in 1447 01:07:38,240 --> 01:07:41,120 America, nor the American right wants to admit that was a coup. 1448 01:07:41,120 --> 01:07:44,000 You know why? Because the Communist Party in 1449 01:07:44,000 --> 01:07:47,200 China wants to say the Communist Party is continuously reigned 1450 01:07:47,200 --> 01:07:49,560 over China. They don't want to say Deng 1451 01:07:49,560 --> 01:07:54,440 Xiaoping was a coup, OK? The American leftists want to 1452 01:07:54,440 --> 01:07:58,360 say China's still communist because they're taken in by 1453 01:07:58,360 --> 01:08:01,480 words and symbols, right? So they just see the hammer and 1454 01:08:01,480 --> 01:08:02,920 sickler like they must be communist. 1455 01:08:02,920 --> 01:08:05,880 Yay, Comrade writes. They want to claim them as their 1456 01:08:05,880 --> 01:08:09,240 guys, right? And the American right wants to, 1457 01:08:09,720 --> 01:08:11,480 you know, they only see the thing communist. 1458 01:08:11,480 --> 01:08:13,800 And they're like, you know, these are, you know, they've 1459 01:08:13,800 --> 01:08:17,600 been inculcated to think the label is always the same thing 1460 01:08:17,600 --> 01:08:20,279 as what it says, right? In many ways, China is 1461 01:08:20,279 --> 01:08:21,640 nationalist, but they call it communist. 1462 01:08:21,640 --> 01:08:22,880 One way of seeing that very clearly. 1463 01:08:23,279 --> 01:08:26,160 Mao had this whole campaign against the four olds, right? 1464 01:08:26,160 --> 01:08:28,760 Like, among other things, like filial piety, like all the 1465 01:08:28,760 --> 01:08:31,240 pillars of traditional Chinese society were supposed to smash 1466 01:08:31,240 --> 01:08:35,439 them and so on and so forth. And GI is all about the great 1467 01:08:35,439 --> 01:08:38,200 rejuvenation of the Chinese nation, 5000 years of Chinese 1468 01:08:38,200 --> 01:08:39,200 tradition and so on and so forth. 1469 01:08:39,200 --> 01:08:42,399 You're supposed to exalt. This is essentially without 1470 01:08:42,399 --> 01:08:44,600 saying it. He is the, this is the new 1471 01:08:44,600 --> 01:08:48,680 Chinese emperor, right, Right. And so they still keep the label 1472 01:08:48,680 --> 01:08:50,080 communism. Actually, you know, on a 1473 01:08:50,080 --> 01:08:53,359 website, we can do a front end change or we can do a back end 1474 01:08:53,359 --> 01:08:55,240 change, right? A front end change is very 1475 01:08:55,240 --> 01:08:57,720 visible to everybody. A back end change. 1476 01:08:57,720 --> 01:08:59,680 You keep the front end, but the back end is completely changed. 1477 01:08:59,880 --> 01:09:04,640 China did a back end change intentionally so that when you 1478 01:09:04,640 --> 01:09:10,319 swap from, you know, some weird thing over here to Django, to 1479 01:09:10,319 --> 01:09:12,160 Rust, you don't have to change the website at all. 1480 01:09:12,160 --> 01:09:14,240 It can be completely. It just everything just speeds 1481 01:09:14,240 --> 01:09:18,680 up and moves faster. So I think the the issue with 1482 01:09:18,680 --> 01:09:21,359 this is that because the Communists, the Democrats and 1483 01:09:21,359 --> 01:09:24,160 the Republicans all for different reasons, want to 1484 01:09:24,160 --> 01:09:26,439 maintain that China is still Maoist, right? 1485 01:09:28,319 --> 01:09:30,520 It is very hard for people to see clearly that that was 1486 01:09:30,520 --> 01:09:33,399 actually a total disjunction in Chinese history. 1487 01:09:33,399 --> 01:09:35,399 This is also, you know, some of the naive things people say is 1488 01:09:35,399 --> 01:09:37,359 like, oh, the Chinese think in centuries. 1489 01:09:37,720 --> 01:09:40,760 They definitely don't, right? Like the last 100 years was 1490 01:09:40,760 --> 01:09:43,160 total chaos in China, right? Chinese people are human just 1491 01:09:43,160 --> 01:09:46,120 like anybody else. But once it got really great 1492 01:09:46,120 --> 01:09:49,279 leadership in the form of Dung, who basically set up the current 1493 01:09:49,279 --> 01:09:53,000 system, they just went on this complete explosion. 1494 01:09:53,000 --> 01:09:55,040 It's actually crazy, by the way, because he was like 78 years old 1495 01:09:55,040 --> 01:09:56,160 when he took over in his own way. 1496 01:09:56,320 --> 01:09:58,600 You know, Trump is very energetic late in life. 1497 01:09:58,600 --> 01:10:01,880 Like for Deng to be able to run China and do a turn around of 1498 01:10:01,880 --> 01:10:05,760 China from what it was from 78 to 92, He's actually crazy. 1499 01:10:06,280 --> 01:10:08,600 Crazy, right? Yeah, But coming back up. 1500 01:10:08,600 --> 01:10:11,600 So so that's that's my the reason I. 1501 01:10:11,840 --> 01:10:13,440 What's the what's the motivation today? 1502 01:10:13,440 --> 01:10:14,320 What's the motivation today? The. 1503 01:10:14,320 --> 01:10:15,200 CCP Yeah. Oh. 1504 01:10:15,400 --> 01:10:17,200 Yeah, what's the motivation? So they've got their five year 1505 01:10:17,200 --> 01:10:20,600 plan. Yeah, they what are what do what 1506 01:10:20,600 --> 01:10:26,560 is the West? What is the American left and 1507 01:10:26,560 --> 01:10:27,040 right? Where? 1508 01:10:27,040 --> 01:10:29,600 Are they getting wrong? About have right and wrong about 1509 01:10:29,720 --> 01:10:33,960 the mindset of China and you know, the the the, the, the the 1510 01:10:34,160 --> 01:10:39,160 the Dissidity's trap question yes, like how much do we really 1511 01:10:39,160 --> 01:10:41,320 have a trap? And it's a great. 1512 01:10:41,400 --> 01:10:42,960 All this is great. So, you know, and how much of 1513 01:10:42,960 --> 01:10:45,440 this is illusory? Yes, OK, great. 1514 01:10:45,440 --> 01:10:50,640 So there there's a guy in Asia Times named Han Fazy, who I find 1515 01:10:50,640 --> 01:10:53,200 a very insightful writer. He's a little bit of a troll, 1516 01:10:53,200 --> 01:10:56,600 but he's actually very numerical in a way that's unusual among 1517 01:10:56,600 --> 01:10:58,640 Western columnists. This is one of the biggest 1518 01:10:58,640 --> 01:11:01,760 things about good Chinese writers, how numerical they are 1519 01:11:02,000 --> 01:11:04,000 like a good tech guy. You know how like the good 1520 01:11:04,000 --> 01:11:06,560 updates which we get from data. That's right. 1521 01:11:06,840 --> 01:11:09,520 I think you and I are very numerical, like charts, graphs, 1522 01:11:09,520 --> 01:11:10,680 you know, we calibrate in this way. 1523 01:11:11,080 --> 01:11:14,840 And our founders who give us good updates have numbers, not 1524 01:11:14,840 --> 01:11:16,240 just letters, right? You need both. 1525 01:11:16,240 --> 01:11:18,400 But give me the empiricism, I'll tell the story. 1526 01:11:18,400 --> 01:11:19,560 Yeah, exactly. That's right. 1527 01:11:19,560 --> 01:11:24,440 So Han Faizi in Asia Times had a good concept a while back, like 1528 01:11:24,440 --> 01:11:27,760 a few months ago, which is basically that in a kind of 1529 01:11:27,760 --> 01:11:30,600 compliments that I'll add to one idea of my own right, he 1530 01:11:30,600 --> 01:11:34,520 essentially said China executed so fast that it went from being 1531 01:11:34,760 --> 01:11:36,840 a threatening challenger to just totally dominant. 1532 01:11:37,240 --> 01:11:41,880 So it obviated the city strap by just rapid execution and it's 1533 01:11:41,880 --> 01:11:44,720 announced cranking like 300 X number of ships the US has. 1534 01:11:44,920 --> 01:11:47,000 It's got so many ships, so many planes, and so it's like it's. 1535 01:11:47,000 --> 01:11:50,280 Adding It's adding five terawatts of power when we're 1536 01:11:50,280 --> 01:11:51,440 adding one. Exactly. 1537 01:11:51,440 --> 01:11:52,640 Yeah, that's right. And. 1538 01:11:53,160 --> 01:11:54,960 It's accelerating. It's accelerating, right? 1539 01:11:55,160 --> 01:11:58,240 So you only have a war when both sides think they're going to 1540 01:11:58,240 --> 01:12:01,240 win, right? And Hegseth, for example, is 1541 01:12:01,240 --> 01:12:05,920 actually quite a smart guy. So on the Sean Ryan podcast last 1542 01:12:05,920 --> 01:12:09,320 year he showed he was aware the Chinese hypersonics could sink 1543 01:12:09,320 --> 01:12:11,440 every US aircraft there in the 1st 20 minutes, right? 1544 01:12:11,840 --> 01:12:14,520 And other people have said similar things, like the 1545 01:12:14,520 --> 01:12:18,040 Pentagon Govini study showed that the Tomahawks and J dams 1546 01:12:18,040 --> 01:12:19,640 are made in China. There is no war with China. 1547 01:12:19,760 --> 01:12:21,480 There is no war with China. It's basically all fake. 1548 01:12:21,480 --> 01:12:23,880 All the military spending is basically, you know, the 1549 01:12:23,880 --> 01:12:26,160 Raytheon CEO said you can't decouple from China. 1550 01:12:26,160 --> 01:12:29,120 The secretary of the Navy said China's one shipyard makes more 1551 01:12:29,120 --> 01:12:30,600 than all American shipyards combined. 1552 01:12:30,600 --> 01:12:33,200 I mean, the entire concept of there being a military economy 1553 01:12:33,200 --> 01:12:35,440 that's distinct from the consumer economy comes from 1554 01:12:35,440 --> 01:12:37,440 Hollywood movies. But it's wrong, right? 1555 01:12:38,040 --> 01:12:40,280 The military economy is a subset of the consumer economy. 1556 01:12:40,280 --> 01:12:42,600 If you can crank out lots and lots of cars, then you can 1557 01:12:42,600 --> 01:12:44,160 repurpose that to crank out tanks, right? 1558 01:12:44,560 --> 01:12:48,080 So China has like, you can't fight your factory, right? 1559 01:12:48,320 --> 01:12:50,560 And even people who think it's like a high tech competition on 1560 01:12:50,560 --> 01:12:55,720 AI, China is at least at a tie if not more on AI. 1561 01:12:55,720 --> 01:12:58,360 Yeah, I mean, what I, what I hear is that they'll they'll be 1562 01:12:58,360 --> 01:13:00,800 allowed to publish papers. And I see this in science 1563 01:13:00,800 --> 01:13:03,240 because I've tracked a bunch of different disciplines, but like 1564 01:13:04,080 --> 01:13:07,480 they're always publishing right before us, right? 1565 01:13:07,520 --> 01:13:08,720 And then they don't publish beyond that. 1566 01:13:08,720 --> 01:13:10,520 There were some papers that were published that were, they were 1567 01:13:11,040 --> 01:13:14,080 very far ahead. I won't mention what they were 1568 01:13:14,440 --> 01:13:15,840 I. Think and they stopped 1569 01:13:15,840 --> 01:13:16,680 publishing. And they stopped. 1570 01:13:16,680 --> 01:13:17,960 Publishing. Yeah, yeah, yeah, probably. 1571 01:13:17,960 --> 01:13:20,280 So they get turned off. So basically it sound what I 1572 01:13:20,280 --> 01:13:23,480 heard was like, you know, the the party saw party leadership 1573 01:13:23,480 --> 01:13:25,360 saw that they were getting too far ahead. 1574 01:13:25,360 --> 01:13:27,560 Whoever is monitoring this said you're you're publishing too far 1575 01:13:27,560 --> 01:13:28,480 ahead. You have to stop publishing. 1576 01:13:28,480 --> 01:13:29,920 Yeah. So because the individuals. 1577 01:13:29,920 --> 01:13:31,600 Are very smart. Because the scientists, I think 1578 01:13:31,600 --> 01:13:35,840 in China still very much want to have their, their, their, their 1579 01:13:35,840 --> 01:13:37,400 knowledge on an international stage. 1580 01:13:37,400 --> 01:13:39,560 They want to be individually recognized for their work. 1581 01:13:39,760 --> 01:13:42,960 They are prideful scientists. They, they want to have an 1582 01:13:42,960 --> 01:13:45,000 impact on humanity and the grander scheme. 1583 01:13:45,440 --> 01:13:47,360 And they don't just think about the United States, they think 1584 01:13:47,360 --> 01:13:50,000 about the world. And as a result, they want to 1585 01:13:50,000 --> 01:13:52,680 put stuff out there. However, the risk is tipping the 1586 01:13:52,680 --> 01:13:54,600 United States off on how far ahead they are in some 1587 01:13:54,600 --> 01:13:56,600 disciplines, which is rather substantive. 1588 01:13:56,720 --> 01:13:59,080 Yes, that's right. And basically, I mean that is 1589 01:13:59,080 --> 01:14:01,880 the trade off in China. The collective does take 1590 01:14:01,880 --> 01:14:04,600 presence of the individual, and there's a leftist version of 1591 01:14:04,600 --> 01:14:07,880 that which is bad, but there's a nationalist version of that 1592 01:14:07,880 --> 01:14:11,760 which is at least arguably good, right, In the sense of, I think 1593 01:14:12,000 --> 01:14:15,680 up until, let's say up until you get to the 90th percentile, 1594 01:14:16,160 --> 01:14:20,480 China is a good life for most, most Chinese people. 1595 01:14:20,800 --> 01:14:24,120 However, once you get to the 90th or 99th percentile, now 1596 01:14:24,120 --> 01:14:26,000 you're surveilled and tracked and so on, right? 1597 01:14:26,400 --> 01:14:30,000 So China is the best for the most, but the Internet is the 1598 01:14:30,000 --> 01:14:32,920 most for the best, right? So let's say once you get really 1599 01:14:32,920 --> 01:14:36,400 good, you're Jack Ma or you're somebody like that, then you 1600 01:14:36,400 --> 01:14:39,560 need to get out of China or you need to be like yes or no Sir, 3 1601 01:14:39,560 --> 01:14:41,760 bags full star on everything that the party says and does, 1602 01:14:41,760 --> 01:14:44,200 right? So it's a, it's an interesting 1603 01:14:44,200 --> 01:14:48,400 kind of trade off where up to like, let's say upper middle 1604 01:14:48,400 --> 01:14:51,080 class or something like that. You know, you have instant 1605 01:14:51,080 --> 01:14:53,320 delivery of everything. There's no crime. 1606 01:14:53,600 --> 01:14:55,400 The Chinese cities are glowing at night. 1607 01:14:55,400 --> 01:14:57,800 There's books, literature, whatever you want. 1608 01:14:57,800 --> 01:15:01,840 Everything is there. And, and people for the most 1609 01:15:01,840 --> 01:15:04,640 part, by the way, the way that like kind of the censorship in 1610 01:15:04,640 --> 01:15:08,320 China works is you can for the most part say what you want. 1611 01:15:08,520 --> 01:15:12,120 What you can't do is you can't like, organize groups like, like 1612 01:15:12,120 --> 01:15:14,840 to block a bridge, for example, like they do in the US or to, 1613 01:15:15,280 --> 01:15:16,880 you know, throw stones and so on and so forth. 1614 01:15:17,520 --> 01:15:21,160 And the party actually takes all of that feedback and they use it 1615 01:15:21,160 --> 01:15:23,920 to try to like, if they see a lot of anger on something, they 1616 01:15:23,920 --> 01:15:25,880 might censor it, but they take that as feedback and they use 1617 01:15:25,880 --> 01:15:28,200 that to try to, like, cut it off later, right? 1618 01:15:28,400 --> 01:15:30,200 I'm not saying they're good. I'm just saying they're very 1619 01:15:30,200 --> 01:15:34,360 effective at what they do and but but I want to I want to 1620 01:15:34,360 --> 01:15:36,520 address 1 of the your other. I just want to know the mind is 1621 01:15:36,520 --> 01:15:38,480 the mindset we need to destroy the United States. 1622 01:15:38,480 --> 01:15:40,800 No. And do we need to, we need to 1623 01:15:40,800 --> 01:15:44,920 beat the United States well versus we just need to be self 1624 01:15:45,920 --> 01:15:50,360 stable? I I think that in 2025 it may 1625 01:15:50,400 --> 01:15:54,560 actually have gotten to they do need to beat the United States. 1626 01:15:54,560 --> 01:15:57,240 But let me explain what I think the history was just and again, 1627 01:15:57,240 --> 01:16:01,280 I'm only making I'm only coming to this from 10 plus years. 1628 01:16:01,280 --> 01:16:04,120 What I do is I read Russian news and translation. 1629 01:16:04,120 --> 01:16:07,000 I read Indian news, I read Chinese news and translation 1630 01:16:07,000 --> 01:16:10,640 because I feel that that gives me more signal than just reading 1631 01:16:10,840 --> 01:16:14,280 WSJ, New York Times, right? So, and in fact, I don't even 1632 01:16:14,280 --> 01:16:17,720 like X plus Weibo, which is like Chinese Twitter and a few other 1633 01:16:17,720 --> 01:16:19,720 things. You start to actually get a map 1634 01:16:19,720 --> 01:16:22,280 of the world where you're seeing lots of events, by the way, that 1635 01:16:22,280 --> 01:16:23,640 other people aren't even talking about, right? 1636 01:16:23,640 --> 01:16:27,800 OK, fine. So here's my rough narrative of 1637 01:16:27,960 --> 01:16:30,840 how China sees it. And of course, China's a huge 1638 01:16:30,840 --> 01:16:32,720 place with a billion people, and people have different views. 1639 01:16:32,720 --> 01:16:34,320 But let's say let's call it the center of mass. 1640 01:16:34,320 --> 01:16:42,200 Perhaps for about 37 years, from 1978 to 2015, China grinded in 1641 01:16:42,320 --> 01:16:45,720 factories while Americans were watching Friends in the 90s, 1642 01:16:45,880 --> 01:16:48,400 right? And so at every step there, you 1643 01:16:48,400 --> 01:16:52,160 know how, like, a great founder will give up some degree of 1644 01:16:52,160 --> 01:16:56,360 money to preserve control. China would always preserve 1645 01:16:56,440 --> 01:17:00,400 sovereignty, even if it may taking worse economic terms, 1646 01:17:00,680 --> 01:17:02,720 right? And so they would just do the, 1647 01:17:02,920 --> 01:17:05,880 the, you know, the tougher jobs, the more polluting jobs they 1648 01:17:05,880 --> 01:17:08,240 took, the pollution they grinded, grinded, grinded, 1649 01:17:08,240 --> 01:17:12,000 grinded for for generations, decades. 1650 01:17:12,480 --> 01:17:18,080 And then the they kept executing. 1651 01:17:18,640 --> 01:17:27,920 A huge break for them was after 2001 with 911 then like all the 1652 01:17:27,920 --> 01:17:30,560 eyes went off China and just to the Middle East and China had 1653 01:17:30,640 --> 01:17:34,120 years to just kind of grow and just stay out of all of the 1654 01:17:34,120 --> 01:17:36,760 Middle East stuff and Iraq and all that crazy stuff, right? 1655 01:17:37,800 --> 01:17:42,440 And then only by 2015. So there's a critical moment. 1656 01:17:42,440 --> 01:17:44,800 There's a, there's an important graph, important paragraphs that 1657 01:17:44,840 --> 01:17:48,840 we could show you here. This was U.S. media revenue and 1658 01:17:48,880 --> 01:17:51,600 they were doing great. And then Democrats, which is 1659 01:17:51,600 --> 01:17:56,360 basically media, it's a big part of it was they were disrupted by 1660 01:17:56,360 --> 01:17:58,680 the rise of the Internet on Facebook, right? 1661 01:17:59,080 --> 01:18:01,440 And so this happened right after the financial crisis. 1662 01:18:01,480 --> 01:18:05,880 And so we just, I mean, a 75% ish drop in like just a few 1663 01:18:05,880 --> 01:18:07,720 years. That really hurt them. 1664 01:18:07,720 --> 01:18:09,120 And they blamed us for that, right? 1665 01:18:09,200 --> 01:18:12,480 OK, so the Internet disrupted, let's call it blue America or 1666 01:18:12,480 --> 01:18:17,480 Democrats at almost exactly the same time, China over here, you 1667 01:18:17,480 --> 01:18:19,920 see China rise and disrupt Republicans. 1668 01:18:19,960 --> 01:18:23,640 Yeah, manufacturing, right? So in 2010 basically you realize 1669 01:18:23,800 --> 01:18:25,520 it's A4 front conflict. Right. 1670 01:18:25,520 --> 01:18:28,480 And this was unlocked in the early 90s with admittance to the 1671 01:18:28,480 --> 01:18:31,880 WTO and yes and trade freed up. But really? 1672 01:18:33,160 --> 01:18:35,240 The main thing about it is we have to remember also, and this 1673 01:18:35,240 --> 01:18:37,600 is not people don't are forgetting these parts of it. 1674 01:18:38,120 --> 01:18:42,800 China there's there's a strategy to admitting China which was 1675 01:18:43,480 --> 01:18:46,640 like George HW Bush put all these listening posts in 1676 01:18:46,640 --> 01:18:47,840 Western. This is now being revealed. 1677 01:18:47,840 --> 01:18:51,600 One of the reasons that George HW Bush didn't go harder on 1678 01:18:51,600 --> 01:18:57,560 Tiananmen is because the US was using Chinese listening posts to 1679 01:18:57,840 --> 01:19:00,400 listen and eavesdrop on the Soviet Union, right? 1680 01:19:00,720 --> 01:19:03,320 And so they had all that huge border that they have with the 1681 01:19:03,320 --> 01:19:05,160 Soviets. They could get all the signals 1682 01:19:05,160 --> 01:19:08,720 intelligence from there. And so China was a military ally 1683 01:19:09,920 --> 01:19:12,440 against the Soviets, right, which were a much bigger threat. 1684 01:19:12,440 --> 01:19:14,360 And they were just making widgets and so on. 1685 01:19:14,360 --> 01:19:17,520 So, you know, the leadership at that time wasn't dumb. 1686 01:19:17,560 --> 01:19:21,040 They were just triaging and prioritizing like turning China 1687 01:19:21,040 --> 01:19:25,920 from an enemy and a nuclear armed enemy at that into if not 1688 01:19:25,920 --> 01:19:28,680 an ally, at least somebody who's making widgets and at least 1689 01:19:28,680 --> 01:19:32,240 fighting your enemy's enemy is not a dumb move, right Then then 1690 01:19:32,240 --> 01:19:33,800 they leave it to later leadership to figure out the 1691 01:19:33,800 --> 01:19:38,600 next competitive move, right? And so, and moreover, actually 1692 01:19:38,600 --> 01:19:42,800 in the 90s, the premise was that many Americans are going to be 1693 01:19:42,800 --> 01:19:46,760 trained to administer Russia and China as like the next Germany 1694 01:19:46,760 --> 01:19:48,560 and Japan, the next provinces of empire. 1695 01:19:49,000 --> 01:19:51,200 And this was a reasonable guess at the time because Russia was 1696 01:19:51,200 --> 01:19:53,920 part of the G8 and China was sending its best to America. 1697 01:19:54,200 --> 01:19:58,680 And even these like, you know, outlying countries, it seemed 1698 01:19:58,680 --> 01:20:00,840 like the entire world was under American empire, right? 1699 01:20:01,560 --> 01:20:04,560 And but then what happened was like, all these things kind of 1700 01:20:04,560 --> 01:20:07,560 came undone because China executed so well, right? 1701 01:20:07,840 --> 01:20:10,840 And Internet executed so well. And they're both actually 1702 01:20:10,840 --> 01:20:12,320 invisible to Americans. You know why? 1703 01:20:12,320 --> 01:20:13,720 Because Internet is literally invisible. 1704 01:20:13,720 --> 01:20:15,680 It's intangible. And China's overseas. 1705 01:20:16,000 --> 01:20:20,640 So like the cognition of these things even existing, it's not 1706 01:20:20,640 --> 01:20:23,080 like you can look around and see it happening, right? 1707 01:20:23,080 --> 01:20:25,880 It's happening either overseas or in the cloud, right? 1708 01:20:26,000 --> 01:20:31,400 OK, so my narrative is that the rise of China that basically 1709 01:20:31,400 --> 01:20:33,800 disrupted Republicans, the rise of the Internet disrupted 1710 01:20:33,800 --> 01:20:36,480 Democrats, and with the rise of China disrupting. 1711 01:20:36,480 --> 01:20:39,160 So let's take Internet disrupting Democrats led to the 1712 01:20:39,160 --> 01:20:42,720 tech lash against the Internet and it led to wokeness against 1713 01:20:42,720 --> 01:20:45,720 the Republicans. China disrupting the Republicans 1714 01:20:45,720 --> 01:20:49,360 led to trade war against China and Trump against the Democrats. 1715 01:20:51,040 --> 01:20:52,480 OK. Like you can make a diagram of 1716 01:20:52,480 --> 01:20:54,520 that, right? So that's like a more 1717 01:20:54,520 --> 01:20:57,560 explanatory model to me of the last 10 or 15 years. 1718 01:20:57,560 --> 01:21:00,200 Or so wait, explain the wokeness against the Republicans. 1719 01:21:00,440 --> 01:21:02,680 Because what's the power structure that because the the 1720 01:21:02,680 --> 01:21:06,480 whole like origin of wokeness is demolishing power structure. 1721 01:21:06,680 --> 01:21:09,120 For me, it always felt like one of these emergent things, not 1722 01:21:09,120 --> 01:21:11,840 necessarily intentional things. It's very intentional. 1723 01:21:11,960 --> 01:21:18,200 This graph shows that starting in 2013 all these phrases like 1724 01:21:18,200 --> 01:21:19,360 toxic. Yeah, I've seen this. 1725 01:21:19,360 --> 01:21:19,960 Yeah, right. Yeah. 1726 01:21:20,120 --> 01:21:23,560 These all went vertical in NYT in 2013, right? 1727 01:21:23,840 --> 01:21:26,280 Contrast to phrases like Amazon, right? 1728 01:21:26,480 --> 01:21:29,040 These are like control phrases where you can see them just kind 1729 01:21:29,040 --> 01:21:31,040 of going up organically on their own, right? 1730 01:21:31,400 --> 01:21:34,200 You know, or like, you know, radios going down, right? 1731 01:21:34,480 --> 01:21:37,440 These are like control phrases, but you can see an editorial 1732 01:21:37,440 --> 01:21:41,360 decision was made because in your time, stock price was down. 1733 01:21:41,440 --> 01:21:44,400 Remember, like post financial crisis, they almost got sold. 1734 01:21:44,400 --> 01:21:45,880 Washington Post did get sold, right? 1735 01:21:46,240 --> 01:21:49,320 So their stock price was down. And an editorial decision was 1736 01:21:49,320 --> 01:21:53,080 made after seeing the success of Gawker and these other blogs, to 1737 01:21:53,080 --> 01:21:58,480 just pour the most inflammatory words and narrow it as possible 1738 01:21:58,840 --> 01:22:00,880 into the water supply. Part of this was also the Obama 1739 01:22:00,880 --> 01:22:04,520 re election in 2012. The economy was still weak and 1740 01:22:04,720 --> 01:22:07,240 he couldn't really say that he'd repaired the economy. 1741 01:22:07,640 --> 01:22:11,400 So that's when Proto Wokeness really got underway. 1742 01:22:11,400 --> 01:22:13,840 He pushed the race and gender buttons extremely hard during 1743 01:22:13,840 --> 01:22:18,200 the campaign and that got the whole thing heated up right and 1744 01:22:18,760 --> 01:22:20,400 and 1/3. The 2012 RE election. 1745 01:22:20,520 --> 01:22:23,840 The 2012 re election, right? So he pushed those buttons much 1746 01:22:23,840 --> 01:22:27,480 harder in 2012 than he had in 2008, partly because he couldn't 1747 01:22:27,480 --> 01:22:28,880 run fully on the economic record. 1748 01:22:29,400 --> 01:22:33,000 A third piece of it was Occupy Wall Street was, you know, 1749 01:22:33,000 --> 01:22:36,520 pushing on economics and there are various, you know, center 1750 01:22:36,520 --> 01:22:39,280 leftists who didn't want economics be the focus. 1751 01:22:39,280 --> 01:22:41,800 So it's like, OK, just go and do the race and gender and so on 1752 01:22:41,800 --> 01:22:44,120 and stuff, right. So let's say these three things 1753 01:22:44,320 --> 01:22:48,800 like the, let's call it the sort of cynical center left, the New 1754 01:22:48,800 --> 01:22:52,320 York Times and Obama, of course, the roots of all going to go 1755 01:22:52,320 --> 01:22:53,840 even deeper. And there's all kinds of things 1756 01:22:53,840 --> 01:22:55,920 going back to the 60s. And you can trace it back many, 1757 01:22:55,920 --> 01:22:57,600 many, many decades. Of course you can trace it back. 1758 01:22:58,320 --> 01:23:01,480 But let's say the immediate kind of thing is this editorial 1759 01:23:01,480 --> 01:23:04,880 decision over here. And the the key thing about it 1760 01:23:04,880 --> 01:23:08,400 from my standpoint is, you know, that's saying like go woke, go 1761 01:23:08,400 --> 01:23:10,480 broke. But there's actually an 1762 01:23:10,480 --> 01:23:12,760 alternative phrasing. And this is I think John Stokes 1763 01:23:12,760 --> 01:23:15,080 is going into others go broke, go woke. 1764 01:23:15,080 --> 01:23:16,200 Why? Gone broke? 1765 01:23:16,200 --> 01:23:18,280 Go woke. Because once you're once once 1766 01:23:18,280 --> 01:23:21,520 these organizations were going were so, so, so financially. 1767 01:23:21,880 --> 01:23:23,280 Do you think it was the organizations? 1768 01:23:23,280 --> 01:23:25,800 Because it feels to me like just again, there's the. 1769 01:23:25,800 --> 01:23:28,080 Bottom of aspect of it too. Yeah, there there's like this 1770 01:23:28,240 --> 01:23:32,960 economic, like messiness that was happening that at that 1771 01:23:32,960 --> 01:23:35,480 point, where do you go or what do you blame? 1772 01:23:35,480 --> 01:23:37,960 Because, you know, you've got a continuing presidency. 1773 01:23:38,000 --> 01:23:40,880 Yeah. And so you start to recognize 1774 01:23:40,880 --> 01:23:44,280 again, maybe at the end of an empire, this idea that there's, 1775 01:23:45,040 --> 01:23:48,120 well, you, you create synthetic power structures, I mean, that 1776 01:23:48,120 --> 01:23:50,760 rationalize the circumstances that you find yourself in 1777 01:23:50,760 --> 01:23:53,040 without actually looking at the real circumstance, which is it 1778 01:23:53,040 --> 01:23:53,840 was. So insane. 1779 01:23:53,840 --> 01:23:55,920 We organized the system to suck up all the capital and 1780 01:23:55,920 --> 01:23:58,280 inefficiently blow it everywhere, and that's what 1781 01:23:58,280 --> 01:23:59,000 happened. The whole. 1782 01:23:59,000 --> 01:24:01,600 BLM thing after eight years of a black president, you know, it 1783 01:24:01,600 --> 01:24:06,840 was something where it was just, it was essentially meant to be 1784 01:24:07,280 --> 01:24:09,880 like, what's the right way of putting this? 1785 01:24:10,320 --> 01:24:13,840 That was that's something where the left, when it was under 1786 01:24:13,840 --> 01:24:17,560 threat, was going back to its old it. 1787 01:24:17,560 --> 01:24:20,640 It was its own MAGA, right. Let me explain what I mean by 1788 01:24:21,040 --> 01:24:21,360 that. Yeah. 1789 01:24:21,360 --> 01:24:23,760 The civil rights movement, these were its glory days. 1790 01:24:23,920 --> 01:24:25,680 Yeah. When we were we fought for a 1791 01:24:25,680 --> 01:24:27,720 cause. Yeah, man, you know, that was 1792 01:24:27,720 --> 01:24:29,360 their, like, great moment, right? 1793 01:24:29,640 --> 01:24:31,680 World War 2, when they're fighting Nazis, is also a moral 1794 01:24:31,680 --> 01:24:34,040 cause for the right. If it's always, I mean you 1795 01:24:34,040 --> 01:24:38,240 always identify an oppressor, the you know, the, the, the, 1796 01:24:38,320 --> 01:24:42,800 the, the invisible but now manifest reality of the system. 1797 01:24:42,800 --> 01:24:46,800 That's, you know, broken, which is the reason we can't progress, 1798 01:24:46,800 --> 01:24:48,920 right, Because I think we're wages stagnant around that time 1799 01:24:48,920 --> 01:24:49,760 as well. Well. 1800 01:24:49,840 --> 01:24:52,440 I mean, inflation has also been crushing wages for a long time. 1801 01:24:52,480 --> 01:24:54,360 I mean, I mean, I mean real, real, real wage. 1802 01:24:54,440 --> 01:24:57,760 Growth, it really, it really went the, the stagnation or the, 1803 01:24:57,840 --> 01:25:00,320 the devaluation. Really got underway. 1804 01:25:00,520 --> 01:25:03,040 That's the moment when socialism takes off, which is yeah. 1805 01:25:03,040 --> 01:25:04,840 So that's my I have a theory on this. 1806 01:25:04,840 --> 01:25:07,800 My theory is like every human needs to progress by 10% a year. 1807 01:25:07,800 --> 01:25:10,360 We know what we don't have. Like that's what makes us 1808 01:25:10,360 --> 01:25:11,840 unique. We have these like abstract 1809 01:25:11,840 --> 01:25:15,200 concepts That's there's things in the world that I see and I 1810 01:25:15,200 --> 01:25:19,400 don't have it. And so my observation sets my 1811 01:25:19,400 --> 01:25:23,200 understanding of what I am, what I have. 1812 01:25:23,720 --> 01:25:25,800 So that's where desire comes from. 1813 01:25:25,960 --> 01:25:29,400 And so the human only feels satisfied and happy if they're 1814 01:25:29,400 --> 01:25:32,480 getting the things they don't have by some amount every year. 1815 01:25:33,000 --> 01:25:36,920 Have you seen this graph? Amazing, amazing, amazing chart. 1816 01:25:36,920 --> 01:25:38,520 Price of soup, yeah. Here's why. 1817 01:25:38,520 --> 01:25:43,360 There's relatively few products which are like consistent over 1818 01:25:43,360 --> 01:25:46,640 more than 100 years, right? Because you know, and the same 1819 01:25:46,640 --> 01:25:49,640 manufacturers being in business, they're manufacturing of scale. 1820 01:25:51,680 --> 01:25:54,640 This is the true chart, maybe the single best chart of 1821 01:25:54,640 --> 01:25:56,440 inflation. Yeah, Oh look, we went off the 1822 01:25:56,440 --> 01:25:57,840 gold standard. Yeah, right. 1823 01:25:58,200 --> 01:25:59,720 Exactly. So you can see it here, right? 1824 01:25:59,800 --> 01:26:01,840 There it is. So this is the true devaluation 1825 01:26:01,840 --> 01:26:03,400 of the. Dollar no, but I so so this is 1826 01:26:03,400 --> 01:26:05,520 the underlying right. So we we made these decisions to 1827 01:26:05,520 --> 01:26:07,360 grow the government, grow government spending in order to 1828 01:26:07,360 --> 01:26:09,640 give people more stuff. As a result, the only way to 1829 01:26:09,640 --> 01:26:13,400 keep doing that is get off the gold standard Fiat print and 1830 01:26:13,400 --> 01:26:16,080 that's where we ended up causing stagnant wage growth, stagnant 1831 01:26:16,080 --> 01:26:20,480 purchasing power, etcetera, or declining purchasing power and 1832 01:26:20,480 --> 01:26:23,160 stagnant wage growth. On the housing, education and 1833 01:26:23,160 --> 01:26:26,040 healthcare, yeah, those three areas, if you've seen the graph 1834 01:26:26,040 --> 01:26:28,560 that shows that we could put it on the screen, but those are 1835 01:26:28,560 --> 01:26:30,040 three things which are soared in price. 1836 01:26:30,440 --> 01:26:32,640 Well, everything that. Technology, the technology like 1837 01:26:32,640 --> 01:26:34,200 that that doesn't have the government spending. 1838 01:26:34,240 --> 01:26:35,800 Well, that's right, exactly. So the things that. 1839 01:26:35,800 --> 01:26:37,840 Are when the government spends, there's no market force. 1840 01:26:37,960 --> 01:26:41,760 There's no, there's no choice to not buy something if it gets too 1841 01:26:41,760 --> 01:26:44,240 expensive. So as a result, it, it naturally 1842 01:26:44,240 --> 01:26:46,320 gets more expensive every year and the government just says, 1843 01:26:46,640 --> 01:26:48,640 OK, I'll pay more, I'll pay, I'll pay, I'll pay more. 1844 01:26:48,640 --> 01:26:50,280 Oh, we need bigger budget. Oh, we need bigger budget. 1845 01:26:50,280 --> 01:26:52,240 Yes, because the government cannot say no. 1846 01:26:52,240 --> 01:26:55,280 They're not an actual willing buyer. 1847 01:26:55,440 --> 01:26:58,520 They're an unwilling buyer that will pay anything at any price 1848 01:26:58,520 --> 01:26:59,880 because they're mandated to buy the thing. 1849 01:26:59,880 --> 01:27:01,920 That's right, but. But just to go back to like the 1850 01:27:01,920 --> 01:27:04,040 point that I think is really important, like so, so as this 1851 01:27:04,040 --> 01:27:07,480 happens, the cost of everything goes up, the purchasing power 1852 01:27:07,480 --> 01:27:10,720 for everyone goes down. And I think what makes a human 1853 01:27:10,720 --> 01:27:12,360 happy. There was a study in Jonathan 1854 01:27:12,360 --> 01:27:15,560 Heights first book or one of his earlier books that he did called 1855 01:27:15,960 --> 01:27:19,240 happiness Hypothesis, where he showed a psychosocial survey 1856 01:27:19,240 --> 01:27:22,120 data on happiness as a function of income. 1857 01:27:22,520 --> 01:27:26,840 And like at the time, it improved up to $60,000 of income 1858 01:27:26,840 --> 01:27:28,520 a year. Then it flatlined beyond that. 1859 01:27:28,920 --> 01:27:33,840 And then the the key measure of happiness was income change year 1860 01:27:33,840 --> 01:27:35,840 over year. So the more your income changes 1861 01:27:35,840 --> 01:27:37,720 from one year to the next, the happier you are, right? 1862 01:27:37,720 --> 01:27:39,640 And you can think about like, you win the lottery, you're 1863 01:27:39,680 --> 01:27:40,880 thrilled that's the best year of your life. 1864 01:27:40,880 --> 01:27:42,120 Next year you didn't win the lottery. 1865 01:27:42,200 --> 01:27:44,920 Even though you have $40 million in the bank, you're not as happy 1866 01:27:44,920 --> 01:27:46,960 as you were the year you won the lottery, right? 1867 01:27:47,040 --> 01:27:50,440 So when your income changes, when your purchasing power 1868 01:27:50,440 --> 01:27:54,360 changes, when you now have more than you had last year, you're 1869 01:27:54,360 --> 01:27:56,320 happy. If you have the same as you had 1870 01:27:56,320 --> 01:27:58,080 last year, you start to get a little distressed. 1871 01:27:58,240 --> 01:28:00,200 And if you have less than you had last year in purchasing 1872 01:28:00,200 --> 01:28:02,840 power, you're unhappy. And that's when I think you 1873 01:28:02,840 --> 01:28:06,840 create the construct in your mind of the system and you try 1874 01:28:06,840 --> 01:28:09,000 and define the system that keeps us. 1875 01:28:09,000 --> 01:28:11,680 And that's where there's this opening for the oppressor, 1876 01:28:11,680 --> 01:28:13,480 oppressed narrative to start to take hold. 1877 01:28:13,720 --> 01:28:15,800 Absolutely. And and I think you know my 1878 01:28:15,800 --> 01:28:20,040 framing on that or my phrases, rather than like first world and 1879 01:28:20,040 --> 01:28:22,560 3rd world, I talk about the ascending world and the 1880 01:28:22,560 --> 01:28:24,160 descending world. Yeah, right. 1881 01:28:24,160 --> 01:28:27,480 So the Brooklyn woke is from the descending world. 1882 01:28:27,480 --> 01:28:30,520 They were born rich, but they feel themselves becoming poor. 1883 01:28:30,520 --> 01:28:33,360 No and and they were the first generation in American history 1884 01:28:33,360 --> 01:28:36,040 to move out of a middle class house and then have negative 1885 01:28:36,040 --> 01:28:38,120 capital. They end up in a in a rent 1886 01:28:38,120 --> 01:28:40,800 situation with four, you know, 440 million Americans graduate 1887 01:28:40,800 --> 01:28:42,760 in the last 10 years from student from college with 1888 01:28:42,760 --> 01:28:45,480 student loan average student loan debt four $40,000. 1889 01:28:45,920 --> 01:28:47,680 So 40 million Americans with 4000. 1890 01:28:48,080 --> 01:28:49,320 Is that is that? Right. 1891 01:28:49,320 --> 01:28:52,800 Yeah, that might be a median number, but it's a pretty 1892 01:28:52,800 --> 01:28:55,840 substantive number. And so 40 million, four million 1893 01:28:55,840 --> 01:28:59,200 a year, 10 years. And so you add that number up 1894 01:28:59,360 --> 01:29:01,640 and then you look at the cost of rent and then you look at wages 1895 01:29:01,640 --> 01:29:04,080 in New York City and you're like, OK, rent has gone up, 1896 01:29:04,440 --> 01:29:06,920 wages have stayed flat and now you're graduating. 1897 01:29:06,920 --> 01:29:10,600 And most of those kids came from a middle class family where they 1898 01:29:10,600 --> 01:29:12,560 had positive assets. The parents owned the house. 1899 01:29:12,840 --> 01:29:16,440 Now the kids that voted for Mandani cannot buy a home. 1900 01:29:17,000 --> 01:29:19,040 They do not see a path to being able to do that. 1901 01:29:19,040 --> 01:29:22,480 They're stuck with these student loans and they don't know like 1902 01:29:22,640 --> 01:29:23,880 where they're going to go in life. 1903 01:29:23,880 --> 01:29:25,400 That's right. And that's when the the press or 1904 01:29:25,400 --> 01:29:29,520 repressed narrative resonates emotionally, and that's when 1905 01:29:29,720 --> 01:29:32,360 this kind of socialist manifesto can win. 1906 01:29:32,360 --> 01:29:34,880 That's right. And I think basically the issue 1907 01:29:34,880 --> 01:29:39,040 with this is it is, you know, there's, there's a graph that I 1908 01:29:39,040 --> 01:29:40,880 think Americans pull back from values. 1909 01:29:40,920 --> 01:29:42,440 Yeah. Right, exactly. 1910 01:29:42,960 --> 01:29:45,360 Religion, children, community. Only thing that's up is my 1911 01:29:45,360 --> 01:29:46,720 interest. Very individualist, right? 1912 01:29:47,040 --> 01:29:51,560 Yeah, by the way, this is all linked to progress like that 10% 1913 01:29:51,560 --> 01:29:53,960 improvement in life every year, as I meant like the more you can 1914 01:29:54,320 --> 01:29:58,360 cause as soon as you don't have that, all the values that you 1915 01:29:58,360 --> 01:30:00,880 held true, you no longer believe in. 1916 01:30:00,920 --> 01:30:03,040 Rule got you here. What use was the rule? 1917 01:30:03,040 --> 01:30:05,760 That's right. OK, so this graph has three 1918 01:30:05,760 --> 01:30:07,920 different charts. This is showing the yield spikes 1919 01:30:08,200 --> 01:30:11,480 in the US, Germany, Japan, UK, Italy, France. 1920 01:30:11,480 --> 01:30:14,720 At the same time this is showing yield dropping in China. 1921 01:30:15,160 --> 01:30:19,080 But this one is 1, which shows that the blue American and red 1922 01:30:19,080 --> 01:30:22,120 American are genuinely descending world, but they 1923 01:30:22,240 --> 01:30:25,360 they're not calibrated on why essentially for thousands of 1924 01:30:25,360 --> 01:30:27,440 years the center. Can you see that from there? 1925 01:30:27,720 --> 01:30:31,360 OK, for thousands of years, the center of the global economy in 1926 01:30:31,360 --> 01:30:32,840 the sense of the weighted average, right? 1927 01:30:32,840 --> 01:30:35,760 So not literally in Kazakhstan, but like the weight average of 1928 01:30:35,760 --> 01:30:39,400 China plus India plus the Middle East, Europe, the weighted 1929 01:30:39,400 --> 01:30:41,760 average was basically in the center of Eurasia because there 1930 01:30:41,760 --> 01:30:44,480 was rough military economic parity across the EUR Asian 1931 01:30:44,480 --> 01:30:45,160 supercontinent. OK. 1932 01:30:45,160 --> 01:30:48,640 That's why Marco Polo sought a China. 1933 01:30:48,640 --> 01:30:51,640 That's why Columbus risked his life to get to India. 1934 01:30:51,800 --> 01:30:54,120 That's why the Mongols and the Huns at various times could 1935 01:30:54,120 --> 01:30:58,040 defeat Europeans. That's why, you know, like the 1936 01:30:58,440 --> 01:31:03,400 the, you know, Spain was taken by, you know, folks in the 1937 01:31:03,400 --> 01:31:04,840 Middle East and so on and so forth, right? 1938 01:31:05,200 --> 01:31:07,680 And so there's something where it wasn't that Europe was 1939 01:31:07,680 --> 01:31:09,560 completely dominant. They were, they were one major 1940 01:31:09,560 --> 01:31:12,400 power and they weren't unified at all times, obviously, right? 1941 01:31:12,720 --> 01:31:18,040 OK, so with the infant of the industrial Revolution, Europeans 1942 01:31:18,040 --> 01:31:20,840 got so far ahead that the world economy rocketed out there. 1943 01:31:20,840 --> 01:31:24,200 And then with 19/13/1940, they blew each other up with World 1944 01:31:24,200 --> 01:31:26,080 War One and World War 2 with all these new gizmos they had. 1945 01:31:26,560 --> 01:31:29,720 And when the dust settled, everybody else had been they 1946 01:31:29,720 --> 01:31:31,520 were under socialism, they're under communism. 1947 01:31:31,520 --> 01:31:33,720 Japan had been nuked, Eastern Europe was in ruins. 1948 01:31:33,920 --> 01:31:37,600 The entire European continent was just bombshells, everything 1949 01:31:37,600 --> 01:31:40,560 flying, right? And the US was basically 1950 01:31:40,560 --> 01:31:44,640 unscathed relatively. And so the world economy was 1951 01:31:44,640 --> 01:31:48,000 essentially balanced between North America and Western 1952 01:31:48,000 --> 01:31:50,720 Europe, right? And so this was peak America, 1953 01:31:50,760 --> 01:31:54,160 peak westernization, peak centralization of all time and 1954 01:31:54,160 --> 01:31:57,640 all of history. But this is seen as by 1955 01:31:57,640 --> 01:32:00,360 Americans, the way things are supposed to be. 1956 01:32:00,480 --> 01:32:02,760 That's why it's the post war. This is treated as the year 1957 01:32:02,760 --> 01:32:06,000 01945, right? The beginning of American 1958 01:32:06,000 --> 01:32:09,480 empire, whatever you want to call it, right and so everything 1959 01:32:09,480 --> 01:32:11,680 is calibrated on that as the baseline. 1960 01:32:12,040 --> 01:32:13,280 It has how things were speed. But. 1961 01:32:13,840 --> 01:32:16,600 And people say, oh, around that time, you know, somebody without 1962 01:32:16,600 --> 01:32:19,800 a high school degree, they could have a home and they could have 1963 01:32:19,800 --> 01:32:22,680 a wife and kids and you know that was a good thing for the 1964 01:32:22,680 --> 01:32:24,720 working man but they're not calibrated on. 1965 01:32:24,720 --> 01:32:29,080 Is that the, you know, Chinese guy or the Polish guy who is 1966 01:32:29,320 --> 01:32:33,080 just as smart or smarter or hard working was artificially being 1967 01:32:33,080 --> 01:32:37,480 restricted from the global market by communism, by, you 1968 01:32:37,480 --> 01:32:39,000 know, various ideologies, Right. OK. 1969 01:32:39,960 --> 01:32:44,040 Once the Cold War ended in 1991, you see the rubber bands snap 1970 01:32:44,040 --> 01:32:47,760 back to Asia very, very fast because China is no longer a 1971 01:32:47,760 --> 01:32:50,240 communist, Eastern Europe is no longer a communist, India is no 1972 01:32:50,240 --> 01:32:51,440 longer a socialist, it's liberalized. 1973 01:32:51,440 --> 01:32:53,360 Russia is no longer a communist, not to the same extent, 1974 01:32:53,360 --> 01:32:55,240 Southeast Asia is liberalized, etcetera, etcetera. 1975 01:32:55,640 --> 01:32:57,920 Everybody is now actually competing on the global stage. 1976 01:32:58,360 --> 01:33:01,800 And for a while, this seems to be, you know, a win, win for 1977 01:33:01,800 --> 01:33:03,520 everybody. And in many ways it is. 1978 01:33:04,080 --> 01:33:08,400 But the problem is that this is a huge shift in relative power. 1979 01:33:09,200 --> 01:33:10,920 And here's where the the problem starts. 1980 01:33:11,840 --> 01:33:15,880 Dollar inflation, because is, is global taxation, because when 1981 01:33:15,880 --> 01:33:18,400 the US is printing a dollar, it is distributing that inflation 1982 01:33:18,400 --> 01:33:21,880 across billions of people, not just 300 million Americans that 1983 01:33:21,880 --> 01:33:24,160 required to have the dollar. They need to be global, number 1984 01:33:24,160 --> 01:33:28,080 one, if they're declining in relative power, they're no 1985 01:33:28,080 --> 01:33:31,200 longer global #1 whereas if they were, if America was just 1986 01:33:31,200 --> 01:33:35,360 exporting chocolates or, or even cars, it could have a gradual 1987 01:33:35,360 --> 01:33:40,880 decline to #2 instead, it has to fight like heck to be #1 And 1988 01:33:40,880 --> 01:33:43,360 this is actually the underlying logic of, you know, like any 1989 01:33:43,360 --> 01:33:45,400 company, if you're not growing, you're dying, right? 1990 01:33:45,760 --> 01:33:51,800 So the American empire has to from like kind of the metal 1991 01:33:51,800 --> 01:33:54,240 logic, you know, an Ant doesn't have intelligence, but an Ant 1992 01:33:54,240 --> 01:33:57,680 colony does, right? The empire has to start a fight 1993 01:33:57,680 --> 01:33:59,240 with Russia, start a fight with China again, right? 1994 01:33:59,240 --> 01:34:00,800 That's right. It has to expand. 1995 01:34:00,800 --> 01:34:04,000 If it doesn't expand, OK, fine. But the problem is and getting 1996 01:34:04,000 --> 01:34:07,720 back to the the city, the cities trap, it has lost that fight 1997 01:34:07,720 --> 01:34:10,960 with Russia in the sense of all of NATO cannot impose military 1998 01:34:10,960 --> 01:34:12,880 terms in Russia. Just the fact that Russia's 1999 01:34:12,960 --> 01:34:14,640 fought this thing to a standstill. 2000 01:34:15,160 --> 01:34:17,840 Maybe with the Pragoshan thing, it could have gone another way, 2001 01:34:18,440 --> 01:34:20,880 but the fact that Russia is being essentially supported by 2002 01:34:20,880 --> 01:34:24,200 China, Russia's just going to grind this out and Russia needs 2003 01:34:24,200 --> 01:34:26,000 it more. So it's very clear, I think, 2004 01:34:26,000 --> 01:34:28,480 what the long term outcome is, even if it hasn't been priced 2005 01:34:28,480 --> 01:34:30,680 in. Moreover, the, the to the, the 2006 01:34:30,680 --> 01:34:35,760 city's trap, arguably Russia, Ukraine was the big China US 2007 01:34:35,760 --> 01:34:39,600 war, but by proxy, right? And so it's done by proxy where 2008 01:34:39,600 --> 01:34:42,120 China supplies one side, the US supplies the other side, they 2009 01:34:42,120 --> 01:34:44,400 slug it out, and the Russians are basically winning. 2010 01:34:44,400 --> 01:34:46,280 Otherwise there wouldn't be peace talks like there would 2011 01:34:46,280 --> 01:34:48,960 just be dictating terms, right? There's only talks if you can't 2012 01:34:48,960 --> 01:34:51,200 dictate terms. the US is not strong enough to dictate terms 2013 01:34:51,200 --> 01:34:54,120 to Russia on the battlefield or strong enough to dictate terms 2014 01:34:54,120 --> 01:34:59,360 to China industrially. And so the issue here is that 2015 01:34:59,360 --> 01:35:03,240 that means you have a descending world like the blue American, 2016 01:35:03,240 --> 01:35:05,680 red American who are calibrated on being all time high, your 2017 01:35:05,680 --> 01:35:07,200 lottery winning kind of thing, right? 2018 01:35:07,560 --> 01:35:11,120 They're calibrated in 1950. But you can only go down from 2019 01:35:11,120 --> 01:35:15,200 there, right? And so, so because of that, 2020 01:35:15,560 --> 01:35:18,480 that's like this, you know, we, we start to understand the 2021 01:35:18,480 --> 01:35:21,840 perspective of the Russian after the end of the Cold War. 2022 01:35:21,920 --> 01:35:24,240 Right, right. They just felt this huge psychic 2023 01:35:24,240 --> 01:35:27,560 loss and status, and many of them discovered new identities. 2024 01:35:27,560 --> 01:35:30,440 This is the biggest thing, by the way, the Soviets, some of 2025 01:35:30,440 --> 01:35:32,080 them became, some of them were Estonians. 2026 01:35:32,080 --> 01:35:34,360 They had a new identity, Estonian nationalism, right? 2027 01:35:34,600 --> 01:35:38,120 Some of them like Sergey Brin's, you know, parents or Vitalik's 2028 01:35:38,120 --> 01:35:40,000 parents, they went overseas. They identified as 2029 01:35:40,000 --> 01:35:42,360 mathematicians first and foremost, not like Russians or 2030 01:35:42,360 --> 01:35:44,800 what have you, right? Some of them obviously stayed in 2031 01:35:44,800 --> 01:35:47,760 Russia. Some of them became like, you 2032 01:35:47,760 --> 01:35:50,000 know, they were Ukrainian, some identified as Christian, 2033 01:35:50,000 --> 01:35:51,560 Orthodox Christian. They rebuilt the church. 2034 01:35:52,000 --> 01:35:54,680 Many just had a total identity crisis because they're atheists 2035 01:35:54,680 --> 01:35:56,320 and they didn't have any meaning and so and so forth. 2036 01:35:56,320 --> 01:35:58,240 So they drank and drugged themselves, you know, right. 2037 01:35:58,720 --> 01:36:01,280 And there are all kinds of crazy wars after the Soviet Union 2038 01:36:01,280 --> 01:36:04,080 ended. And so that question is what's 2039 01:36:04,080 --> 01:36:07,200 being litigated right now today on on X at ever increasing 2040 01:36:07,200 --> 01:36:10,480 volume of like who is an American is like who is the 2041 01:36:10,480 --> 01:36:12,360 Soviet? Yes, it's like a constructed 2042 01:36:12,360 --> 01:36:16,720 softer category and it's even more artificial than the Soviet 2043 01:36:16,720 --> 01:36:18,000 category. Soviets you could at least come 2044 01:36:18,000 --> 01:36:20,120 back to Russian and Russians were 50. 2045 01:36:20,160 --> 01:36:21,840 That's in our piece, you know, the ethnic piece of the end of 2046 01:36:21,840 --> 01:36:24,480 the Soviet Union. So we know the economic piece, 2047 01:36:24,800 --> 01:36:26,400 right? Obviously communism didn't work 2048 01:36:26,400 --> 01:36:28,240 and you know, like eventually the planned economy failed. 2049 01:36:28,320 --> 01:36:31,200 All true. But the ethnic piece is that in 2050 01:36:31,200 --> 01:36:34,920 8/19/89 there's a survey that showed that the Russian ethnic 2051 01:36:34,920 --> 01:36:38,800 group had gone down to 51%. And so the Russians were like, 2052 01:36:38,800 --> 01:36:40,840 wait a second, we're supposed to be predominant in the Soviet 2053 01:36:40,840 --> 01:36:44,520 Union and long pent up nationalisms were fighting with 2054 01:36:44,520 --> 01:36:47,520 each other because, you know, like the Poles or the Estonians, 2055 01:36:47,520 --> 01:36:49,400 they all felt legitimately oppressed by the Russians. 2056 01:36:49,400 --> 01:36:51,320 But the Russians felt we're carrying the weight of the whole 2057 01:36:51,320 --> 01:36:52,680 union, right? We're the main guys. 2058 01:36:52,680 --> 01:36:55,320 We we're the ones who bled the most, you know, and we're paying 2059 01:36:55,320 --> 01:36:57,440 for the union. So both parties felt oppressed 2060 01:36:57,440 --> 01:36:59,480 by the other. Yeltsin was on the side of 2061 01:36:59,480 --> 01:37:01,960 Russian nationalism, Estonians instead of Estonian nationalism, 2062 01:37:01,960 --> 01:37:05,120 Poles, you know, like everybody was in in for their own tribal 2063 01:37:05,120 --> 01:37:06,880 nationalism. The whole thing came apart. 2064 01:37:07,200 --> 01:37:09,320 This is what's happening in America now where double digit 2065 01:37:09,320 --> 01:37:12,560 percentages of the population, some percentage of people hate 2066 01:37:12,560 --> 01:37:15,080 white people, some hate men, some are mad at Jewish people, 2067 01:37:15,080 --> 01:37:18,080 some are mad at, and some are mad at, you know, XY, like no 2068 01:37:18,080 --> 01:37:20,280 matter what, somebody hates you in America, unfortunately, 2069 01:37:20,280 --> 01:37:22,840 right? And so when you Add all that up, 2070 01:37:23,280 --> 01:37:26,960 that is very similar to where the Soviet Union was before the 2071 01:37:26,960 --> 01:37:29,520 very end. And the one thing that's keeping 2072 01:37:29,520 --> 01:37:31,400 the whole thing together is the reserve currency. 2073 01:37:31,760 --> 01:37:33,920 But that's going away very fast. You've seen the dollar graphs 2074 01:37:33,920 --> 01:37:35,880 and so on. So because of all that, I think 2075 01:37:36,920 --> 01:37:39,880 be ready for the reboot. Like, I think what's going to 2076 01:37:39,880 --> 01:37:43,760 happen after the dollar ends is the Democrats are going to side 2077 01:37:43,760 --> 01:37:46,400 with Chinese communists and the Republicans are going to become 2078 01:37:46,400 --> 01:37:48,840 Bitcoin maximalist. And that's why I think it, it 2079 01:37:48,840 --> 01:37:52,880 comes next. But I think one other piece I'll 2080 01:37:52,880 --> 01:37:57,000 say a very big thing that is going to become a thing in the 2081 01:37:57,000 --> 01:38:00,000 future is people are going to be mad at those who leave. 2082 01:38:00,000 --> 01:38:03,280 They're going to say something like stay and fight you coward, 2083 01:38:03,360 --> 01:38:06,600 right? And but the issue with this is, 2084 01:38:06,760 --> 01:38:08,760 you know, I'll, I'll give a one line of response and more 2085 01:38:09,720 --> 01:38:11,680 because Calacanis and I, Jason and I have kind of talked about 2086 01:38:11,680 --> 01:38:13,880 this. So like, did the Irish Americans 2087 01:38:13,880 --> 01:38:15,920 betray Ireland by leaving Ireland? 2088 01:38:15,920 --> 01:38:16,800 Should they have stayed in Ireland? 2089 01:38:16,800 --> 01:38:19,040 It's actually more people of Irish descent outside Ireland, 2090 01:38:19,160 --> 01:38:21,400 right? Didn't really betray Ireland. 2091 01:38:21,400 --> 01:38:23,520 What would that even mean? The potato famine, other things, 2092 01:38:23,640 --> 01:38:25,400 things were breaking up. Obviously some Irish stayed 2093 01:38:25,400 --> 01:38:26,400 back. Why didn't they stay back, 2094 01:38:26,400 --> 01:38:28,800 right? And the actual answer was those 2095 01:38:28,800 --> 01:38:31,280 people at that place in that time did not feel that they 2096 01:38:31,280 --> 01:38:34,560 actually were empowered to cause anything positive politically 2097 01:38:34,560 --> 01:38:35,280 there. So they left. 2098 01:38:36,200 --> 01:38:39,680 The Puritans who came to the Massachusetts colony, they left, 2099 01:38:39,800 --> 01:38:42,640 right, because they felt, you know what, let me make make a 2100 01:38:42,640 --> 01:38:45,280 better life abroad, right? The Germans who came from the 2101 01:38:45,280 --> 01:38:48,040 revolutions of 1848, they felt better life abroad. 2102 01:38:48,400 --> 01:38:50,680 And then more recently, obviously, Jews coming from the 2103 01:38:50,680 --> 01:38:54,560 Holocaust, you have the Persians who fled the, you know, Iranian 2104 01:38:54,560 --> 01:38:57,680 revolution, Yeah, Chinese and Koreans and Vietnamese who fled 2105 01:38:57,680 --> 01:38:59,760 communism. Indians were really oppressed by 2106 01:38:59,760 --> 01:39:02,720 socialism and Indira Gandhi and and, and Emergency and so and so 2107 01:39:02,720 --> 01:39:04,080 forth. This stories that Americans 2108 01:39:04,080 --> 01:39:07,080 don't actually know and obviously they're all the 2109 01:39:07,080 --> 01:39:09,440 dysfunctional governments in Latin America and South America 2110 01:39:09,440 --> 01:39:11,880 like, you know, Castro and that's story that many Americans 2111 01:39:11,880 --> 01:39:14,800 do know but Venezuela, that's right, Venezuela. 2112 01:39:14,840 --> 01:39:18,240 So the point being these people like Russians, Chinese, they're 2113 01:39:18,240 --> 01:39:19,960 not dumb people. Like look at look at, you know, 2114 01:39:19,960 --> 01:39:22,080 they're pretty good at math and they've got a, you know, great 2115 01:39:22,080 --> 01:39:23,440 civilization at various times in history. 2116 01:39:23,440 --> 01:39:25,560 But they were hit by this mind virus of communism. 2117 01:39:25,560 --> 01:39:28,000 Their studies melted down and their many of their best left 2118 01:39:28,240 --> 01:39:31,080 and many others were stuck. And the ones who were stuck were 2119 01:39:31,080 --> 01:39:34,080 mad at those who left. But stay and fight. 2120 01:39:34,120 --> 01:39:38,200 What exactly does it mean? Because stay and fight who? 2121 01:39:38,200 --> 01:39:40,640 Oh, stay and fight another American for America. 2122 01:39:40,640 --> 01:39:43,520 That's what they mean by it. Stay and fight with whom? 2123 01:39:43,720 --> 01:39:46,920 Because a lot of them are also saying, tech guy, get out. 2124 01:39:46,960 --> 01:39:49,600 They're saying, you know, like Indians, we don't want you 2125 01:39:49,600 --> 01:39:51,640 anymore or whatever, right? So we don't, we don't want you. 2126 01:39:51,640 --> 01:39:54,560 Yeah, tech guy, if you over contribute, I'm going to 2127 01:39:54,560 --> 01:39:55,840 penalize you. Yeah, exactly. 2128 01:39:55,840 --> 01:39:57,600 That's right. So on the one hand, they'll be 2129 01:39:57,600 --> 01:39:59,480 mad for you for leaving. The other hand they're literally 2130 01:39:59,480 --> 01:40:03,920 putting a thing saying tech guy get out right then stay in fight 2131 01:40:03,920 --> 01:40:05,800 for what? Right, because. 2132 01:40:06,240 --> 01:40:08,600 Like it's just something where they're mad about the past going 2133 01:40:08,600 --> 01:40:10,360 away, but they don't actually have a positive vision of the 2134 01:40:10,360 --> 01:40:12,560 future where you're on equal terms with them and so on and so 2135 01:40:12,560 --> 01:40:14,960 forth. And finally see and fight How? 2136 01:40:15,360 --> 01:40:17,560 Well, because staying actually is surrendering. 2137 01:40:17,600 --> 01:40:19,280 Why? Because if you stay in 2138 01:40:19,280 --> 01:40:20,600 California, you're subsidizing it. 2139 01:40:20,640 --> 01:40:23,120 Yeah, right. And so leaving is actually 2140 01:40:23,120 --> 01:40:25,480 fighting, right. So anyway, so that's how I how I 2141 01:40:25,480 --> 01:40:27,160 think about it. Getting, getting these zones 2142 01:40:27,160 --> 01:40:29,280 going, getting these freedom cities going, getting these 2143 01:40:29,280 --> 01:40:32,360 special Elon zones going. I think that's that's a positive 2144 01:40:32,360 --> 01:40:32,920 vision. Yeah. 2145 01:40:32,920 --> 01:40:35,680 We want to work on, yeah. Well, I'm sure people in the 2146 01:40:35,680 --> 01:40:39,240 administration will listen, OK, and try great. 2147 01:40:40,600 --> 01:40:44,480 I do think it's important to try and I do think like, look, I 2148 01:40:44,480 --> 01:40:48,280 mean, America was designed to have mechanisms of self 2149 01:40:48,280 --> 01:40:50,600 correction. I think we've talked a lot about 2150 01:40:50,960 --> 01:40:53,800 the grand cycles and all of those mechanisms are another 2151 01:40:53,800 --> 01:40:57,800 effort at a cycle that we've seen many times before. 2152 01:40:58,640 --> 01:41:01,080 But I do think that there's a significant will and I do 2153 01:41:01,080 --> 01:41:05,840 believe deeply in the notion of agency, but it requires 2154 01:41:05,840 --> 01:41:10,480 collective agency and there's collective forces that have very 2155 01:41:10,480 --> 01:41:14,800 disparate views on what their agency is intentional intending 2156 01:41:14,800 --> 01:41:17,600 to do. And that may ultimately lead to 2157 01:41:17,920 --> 01:41:21,040 not being able to get out of the cycle fundamentally, but. 2158 01:41:21,880 --> 01:41:24,480 I, I, I will say this, you know, there's, there's a, there's a 2159 01:41:24,480 --> 01:41:27,480 lot of amazing Americans, There's a lot of amazing 2160 01:41:27,640 --> 01:41:30,760 strength in the American spirit. And a big part of that is being 2161 01:41:30,840 --> 01:41:33,680 able to reboot from scratch. The whole thing, what was 2162 01:41:33,680 --> 01:41:35,400 America, it was the startup country. 2163 01:41:35,560 --> 01:41:38,120 The whole thing was about being able to do it from scratch, 2164 01:41:38,120 --> 01:41:39,160 right? Being able to reboot from 2165 01:41:39,160 --> 01:41:41,240 scratch. I just don't know if the average 2166 01:41:41,240 --> 01:41:44,600 if the majority of Americans feel that or remember that. 2167 01:41:45,080 --> 01:41:48,400 Maybe so, but at least some do and those can found freedom 2168 01:41:48,400 --> 01:41:51,040 cities and special economic zones and startup cities. 2169 01:41:51,360 --> 01:41:54,080 And crucially, that's, you know, that's often portrayed as Oh my 2170 01:41:54,080 --> 01:41:55,840 God, it's for the rich. It's not for the rich. 2171 01:41:56,040 --> 01:41:58,640 It's actually something where it's for the builders. 2172 01:41:58,680 --> 01:41:59,840 That's. Right, right. 2173 01:41:59,840 --> 01:42:01,680 OK, great. Thanks for having me. 2174 01:42:01,680 --> 01:42:03,320 It's been great to visit. Boom. 2175 01:42:03,480 --> 01:42:05,360 And Congrats on everything you've built.