The Mask is Slipping - Elon Bails On DOGE, Macron gets Smacked, AI Goes ROGUE! | Tom Bilyeu Show

Elon gives up on DOE, Macron gets popped in the mouth by his wife on camera, Bitcoin is near all-time highs, DeSantis makes gold and silver legal tender, the Japanese yen carry trade provides another global economic warning sign, AI attempts to turn itself into a self-replicating virus to avoid being shut down, and a Starbucks employee bursts into tears over working an 8-hour shift. In DOE's news, Elon has taken a step down. There was a great tweet that kind of sums it all up. He says, "DOE is literally one of the most popular government initiatives in history. 73% of Americans say they support cutting government waste. Trump brought in the smartest man on Earth to do it. The left destroyed Elon for it. The GOP won't vote on it. I can't believe this." Yeah. And Elon simply tweeted, "Did my best." This is coming after the big beautiful bill did not codify any of the DOE cuts. So, the proposed savings that they wanted to realize in the future, they haven't even made it on the last budget bill. So, it seems like Yeah. all this will be for naught. Politics can only be understood as a game of power, manipulation, narrative control, general control, and getting reelected. Like, job number one, get power. Job number two, retain power. Mhm. It's not make the world a better place and people will recognize you for it and lift you up on their shoulders. Man as political animal does not work that way. Mhm. But when the greatest capital allocator of all time tries to help and say, "Hey, here are some basic things you need to be doing." And people freak out. Then it's like, man, that that is Stockholm Syndrome on steroids. You are being I don't know that you can even have periods of a balanced budget for long. So, this is where you hit me with, well, in the '90s Clinton balanced the budget. what I was going to Nothing bad happened, Tom. Alan Greenspan is not a fool. And the only reason that we didn't derail is because he unlocked private credit. So, he made sure that money was easy to get in the private sector, and we had a huge boom of private debt. So, money was still being printed, it just wasn't being given to the government. Of course. There's government debt. Everybody's aware of that. Mhm. There's also corporate debt. Most people probably aren't aware of that. Those are corporate bonds, if you've ever heard about that. Businesses that owe money to the government then? Businesses that say, "Hey everybody, we have a triple-A credit rating, and we want to sell a bond because we want to go do a thing." Got you. And then the public goes, "Oh [ __ ] AT&T, Apple, yeah, [ __ ] I'll buy a bond from those guys." Works just like it works for the government, allows them to deficit spend without them having to sell shares. Uh and then there's personal debt, all your credit card debt. So, every time that you go and buy something at the store on credit, poof, money exists. Cool. Uh in domestic domestic violence news, everybody want to call out Diddy. I'm calling out the president Was that our first bit take, boys and girls? This is bananas. I don't even play around with like my face, let alone like pushing it. Like I was one of those kids that if they hit my face, the game's over. I take it seriously. Like I don't casually hit other people's faces. That that's a certain thing for me. So, to see this and that smile, like yeah, they were going through something. That is a level of disrespect that I find grotesque in the extreme. You absolutely, as a married couple, have to find a way to separate your interactions of when we're husband and wife and when we are in a political capacity, given that they're on what looks like their version of Air Force One. It's like we are in an official capacity here. There's staff around, man. Yeah. Like if you if you guys have a thing and like it's okay in your relationship to be what I consider just next level rude, then whatever. Do your thing behind closed doors when you're on private time. Mhm. Uh but I mean, not only are they on an official vessel, the cameras were rolling. Yeah. Uh so this to me is is really unhinged. Um they tried to deny it, of course, until the video footage came out and then that made that impossible. Yes, I hate this one as well. I was going to say if I had to tear rank on is this worse than the Alec Baldwin? Oh, definitely. Jesus. There it is. Going to be great. This is you're a winner. Oh my god, when I'm talking, you're not talking. No, when I'm talking, you're not talking. them both so much. This is why yes, we'll have to like just cut him out of the show. That's where I don't know. This I feel like the the the push could be like when she pushed him, that could just be, you know, an emotional thing. This is like he's like I talk to you like this when the cameras aren't off. Like I know the cameras at me and I'm still talking. Like I'm choosing to abuse you. Whereas the Macron thing is like ah you got us. I'm not choosing to push you in the face with both hands on Air Force One. think the camera was rolling, but okay. Yeah, that that to me so it's very interesting as I started looking into the Macron thing. People were like, well, been known for a long time. Is her name Brigitte? Yeah. Has been known for a long time that she's like the brains and he's the face. And so it was like, wow, that is a very interesting thread to pull. There there. But man, there is something I admittedly find so interesting about like weird relationships where the person who's actually out front is just a figurehead. Oh, and there's somebody behind them like Yeah, I mean, obviously Biden. But there's something like this with the wife, like, I don't know, man. This is super weird. This set every like, pay attention to this, don't look away, there's more to find here. I want to yank on this thread. Like, I'm now obsessed. Like, if there's going to be a reality show, I am here for it. I need to know more about this. We officially kicked off the Bitcoin conference this week. Bitcoin has inaugurated the proceedings by going right under their all-time high. They're peaking at right now at the time of this recording, $108,900. Um I want to say it peaked at 110 for like a second, then it kind of went back under to 109 and it was kind of hovering sideways at that point. Um what do you think about the Bitcoin price and your theory that Jack Dorsey's really Satoshi? Yeah, I uh have come across a very compelling set of facts that I have to say now that's just the neuron in my brain for Satoshi is uh shared by Jack Dorsey. Whether that actually is true, I've no idea, but you can count me a believer. Um there was like a internet hive that like he is Yeah, without me like going super deep on it, like I saw four or five data points that I was like, all right, that's super sus. Uh plus, it at least answers the question of whoever this is either has to be like George Washington levels of I don't give a [ __ ] or they've got to be super rich. Because you're sitting on a wallet that has God knows how many billions of dollars in it. That could go up and up and up. I mean, it's possible. I don't know if um I don't know if strategy has passed Satoshi in terms of size of Bitcoin holding, but Michael Saylor blows my mind in terms of how sharp he is at assessing the opportunity of Bitcoin. I know I've said this a gazillion times, but he pulled the entire gambling mechanism of the stock market on top of Bitcoin, uh which I think is really brilliant. And so it'll be interesting to see if if Bitcoin were to get adopted and becomes, you know, let's say 5 to 7% of total assets in the world, uh does he become a bank? Like that would be really interesting. There'd obviously be regulations and stuff that he'd have to meet. But if he could become a bank, yo, now you've got a hard money bank. Ooh, bro. That's like That's how you become an ethical central banker is you just accumulate that scarce resource when it's not as popular and you diamond-handed all the way up. Like I would just have no beef. Do your thing. I remember when he was on the show, he gave us his tracker that if only I think he said 7% of the world's asset classes of the amount of wealth in different asset classes flows into Bitcoin, it's 1 million. And he just shrugged his shoulders like that's only 7%, now imagine if it's 50% or 40%. This is where I get very, very sad that not only does it take intellectual horsepower to figure this stuff out, it takes a lot of time. And people don't want to spend their time like this. This is why I think governments have an obligation to let people um store their wealth in a currency that they're paid in that that can't be inflated. And the fact that that's contentious is crazy to me. The vast majority of people Maybe not that. 40%? Will you give me that? 30% I mean 30% of people uh I think it's way higher than that. It's definitely way higher than that. But let's just say 30% of people, the only thing they're going to like really have time and capability to figure out is buy a house, save my money. Buy a house, save my money. And if houses are inaccessible and saving your money is akin to giving it away, you can't do that. That's immoral. Yeah. And especially like if you understand it. I mean, hey, look, the technically the advisors don't understand it. And so maybe it's just possible we're here out of sheer ignorance. But I doubt it. I doubt it. I don't think this one can be explained without malevolence. Ron DeSantis believes you, and that's why he's officially making gold and silver legal tender in Florida. Um he had a press conference today to talk about the news. What it is, uh we are going to utilize our authority under the Constitution in the state of Florida uh to make sure that gold and silver are recognized as proper legal tender. So you're going to be able to conduct transactions in gold, conduct transactions in silver. Is the cat already out of the bag? Is the gold and silver thing kind of too late? The The cat's out of the bag, that is for sure. The economic destruction is going to be wrought upon the world. But the honest answer is if you were going to get out of this problem, you have to kill the Federal Reserve, and you have to re-harden your money. So I don't know whether I take this as a revolutionary act on the part of our boy here who's like, "Hey, if you guys aren't going to get your [ __ ] together at the national level, then we're going to do it at the state level." And I will be very interested to see what he means about legal tender. Does that mean that everybody has to accept it? Traditionally that's been the way that the government has made fiat work is they say, "This is legal tender," meaning anybody that if you owe them money, they have to accept it. As I go deeper and deeper and deeper down the process of connecting cause and effect in the financial system, it it is like, have you ever seen the movie They Live? Mhm. And like you put sunglasses on and you can see like which people are monsters? Uh it's like that. It's like all of a sudden I'm like, "Can't see it." Then you're like, "Wait a second." You have to have ever increasing amounts of debt. It's really easy to prove. Every single dollar in existence right now became a dollar because someone borrowed it. And the only reason people don't go, "Wait, that can't be true." is because they don't understand what I'm saying. Your dollars are not based on anything. Somebody just said, "I would like to borrow this money." and we gave the Federal Reserve, which is a sort of private company, the ability to go, "Oh, we already want some money? I got you, bro." and they just make it out of thin air. Okay, okay. How bad is it? Can you break it down for us? Let's imagine a world where you borrow a trillion dollars and they print it. Mhm. So now there's an actual trillion dollars sitting somewhere, but there's an extra 50 billion that's owed on that money that has never come into existence. So you could not pay that debt back even if you wanted to. You can either pay the principal or you can pay the interest. So now what do you do? You have to create the need Yeah. for more money to be printed by borrowing to put another 50 billion dollars into the system somewhere that you can at least now go get, earn that money by selling protein bars or whatever, but now it exists. What Let's just instead of calling it the Federal Reserve, let's call it Bob. Bob is legally allowed to counterfeit money in his [ __ ] garage. And so in his garage, Bob has a machine that prints out money. Mhm. He's the only guy. Nobody but Bob can do it. But that's the only way that money is made. Bob, sweaty, in his garage, printing money. And Bob says, "All right, cool. I'm going to give all these people loans. All good." He's got banks all over the world to go, "Bob, can I get some money? This guy wants to borrow some money. I think he's going to do something cool. He's going to buy a house. This guy's going to start a business. This guy is going to buy a car, whatever. But, all of them are willing to pay 5% interest. And Bob goes, "Yeah, word. I'll print that money. Get your 5%." So, Bob prints a trillion dollars. But, 1 trillion and 50 billion, the 50 billion is the 5% interest, has to be eventually paid back if you have a real system. But, you don't have a real system. Your money's fake. And it's just Bob in his [ __ ] garage going, "Oh, now these [ __ ] are going to have to come back to me and be like, 'Yo, Bob, I got to pay this interest. Can I borrow a little more? I'm going to start a second business, or I'm going to uh buy a race car and I'm going to win races, whatever. And I'll pay you back the 5% on that.' And so, Bob's like, 'All right, word.' Bob knows how the game works. So, he's going to print out He's probably going to do, I mean, a hundred bill, right? He's not going to give you just the 50 bill. Gives you the hundred bill, puts it in circulation in all the same ways, all in different places. Buy this, buy that, buy whatever. But, everybody now owes the 5%. The problem is, Drew, you now owe 5% on the new money that he just made. And you will never, and I mean never, ever, ever, ever, ever, ever, ever, because it violates the laws of physics, you will never have enough money to pay that back. Because money is never given out without there being some interest. amount of debt is higher than the total amount of money even available. The total amount of debt is higher than the amount available at all times. At all times. And this is why you get the political theater of we got to raise the debt ceiling. If you don't raise the debt ceiling, you literally don't have the money to pay it back. 37 billion dollars all in trillion. Trillion. 37 trillion dollars all in or something like that. But I'm like, who where is that money going? Who is it going to? And yes, China owns two trillion, Japan owns half a trillion, whatever like that. all the rich people getting richer? They they own it. Yes, it's literally me. So Now, I don't own all of it, which I don't back to your example of Bob, right? Yeah. Is there somebody who's allocating, who's at the top of the pyramid that owns a majority of it? True, I will love you until the end of time for asking that question. Because who are the [ __ ] that get their money first? That's why everybody's mad. Because some people get their money first. The reason that banking central banking is known as a cartel is because they get the money first. They They They own shares in Bob Inc. And so, when it's like, "Hey, some money's got to get printed." They just legitimately know Bob. They pay play squash with Bob. They smoke cigars with Bob. This is where it stops being a metaphor and it starts being that's actually what happens. There's a bunch of these [ __ ] They know each other. Bankers. Yes, central bankers. Let me be very clear. They know each other and yes, they're in cahoots with other banks. When the Fed and Treasury started buying corporate bonds, that that's when they started picking winners. And saying like, "Uh we're going to let Lehman Brothers go under, but we're going to save Goldman Sachs." And now you for reasons that no one is ever going to explain, you picked one company to live and one company to die. And they'll do the same with banks. Whenever there is like a bank run, they'll let a few die that they choose for whatever reason. Could be some petty [ __ ] Could be It was just in worse shape. We didn't want want [ __ ] with it. But they'll decide. You live, you die. And it all happens behind the scenes, and it all happens when somebody's panicking cuz nobody wants to lose their money. I remember when Silicon Valley Bank was folding, and we didn't have money in Silicon Valley Bank, but we had money that we thought might be exposed to people that had money in Silicon Valley Bank. So, we're like, "Oh [ __ ] we should probably move that." And I remember for a second my life just stopped, and I was like, "I don't have to do anything but move this money. Nothing matters. Move the money." And I was like, "Whoa, if you can get a guy like me to feel like that, where I'm like, if I lost that money, it's not really going to matter. And yet, I was still like, 'Okay, this is enough money. Give me my [ __ ] money.'" And what happens when that's the money of somebody who's like, "This is the difference between my kids eat, my kids don't eat." We'll get back to the show in a moment, but first, I want you to imagine if your workout felt more like playing a video game than grinding through a routine. Most people struggle to stick with their fitness routines, not because they're lazy, but because they're bored out of their mind. Aviron has solved this problem in a brilliant way. After strapping myself into this bad boy, I can tell you right now, this is exactly what the fitness industry has been missing, gamification. 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They slap us in the mouth, and then they cuddle us and say everything's going to be okay. Everybody at the party realizes the party's a fraud. No, no, no. People do not understand this at all, not the slightest. So, even even the bankers are like The bankers should know. The bankers probably know. Probably know. But, uh we Yes. This is our man. Okay, wait, who is he? Jared Bernstein, chair of the Council of Economic Advisors for Biden. Holy Jesus, play this. He's an economic advisor. can't go bankrupt because we can print our own money. Why do we borrow our own currency in the first place? And then it uses that money to um This is terrifying. uh So, um Yeah, I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I advisor. He's a chair. He's a chair, so he's a leader of all the economic advisors. That was next to Joe Biden. This is crazy. Um Bro. This is This is the world we live in. Honestly, sometimes I despair. I am an optimistic person by nature, Drew, and the more I learn about this, the more I'm like, there will be a generation. I don't know if it'll be us. It might be a week from now, but there's going to be a generation that is going to get clobbered so badly. I'm talking French Revolution clobbered. War clobbered. This is This is another reason why I am very tense about China and Thucydides trap because we have an economic need to print money. But you have to convince the populace to let you do it because it makes everything worse. When you're printing in huge quantities like we have to to deal with 37 trillion dollars in debt, um prices start going up like crazy. So you have to have something to terrify people. When I do I'm working on it, my beloved community, but uh when I finish the Jekyll Island deep dive, there's a part in there where um he talks about some of the aspects of this that are they're so beyond morality in terms of uh bankers pushing people into wars to ensure that people are afraid so that they'll accept printing. That there was a report written, I think it was called the report from Iron Mountain, where it admittedly the report from Iron Mountain Mountain might be satire. It might have been written as satire when it was created, so it might be better to think of it as 1984, but it was written I forget when but like in the 40s or 50s and they predicted this moment so perfectly where they're like, we might have to use a climate emergency to get people to pay attention. Um it's either war or something like that. It did It's so freaky the way that it's all playing out right now. Um And the goal is not to get out of it. The goal is just to make the populace okay with us printing more. Okay, so this is where it gets really nefarious and this is where you have to understand that um Griffin is probably best understood as a hyper educated conspiracy theorist because he says a whole bunch of things that are non-controversial, provably true, and then he draws a conclusion that is not provably true, that goes into like Rothschild banking cabals. Um And I mean that whole thing is just insane, the way that the Rothschilds made their fortune. By having faster couriers, Drew. Had faster couriers. If I remember the story right, uh they had a courier, so uh Napoleon, Waterloo, does he win, does he lose? It's going to have a huge impact on the price of bonds. He's got a courier system set up between Russia and I assume Paris, maybe Versailles, but anyway. And his guys are faster than the official couriers coming back to say uh that they lost. And so he makes everybody believe that he won. And so the bond prices plummet. Everyone just starts selling. Sell, sell, sell, sell, sell, sell, sell. And when it hits like just this stupid low price, he buys everything. And then the next day, the courier shows up and says, "No, he actually lost." And then boom, bond prices skyrocket. And that's how he made his fortune. Wow. And evil, probably. I mean, he was acting, he didn't say anything, but people he knew people were watching him. So anyway, from that, he then has kids that end up, unlike most generations where the kids just dissipate the [ __ ] money, his kids were like, "Yo, we get the assignment." And so he sends his kids like around the world to start up all these central banks. And the central banks in each of the countries basically have to convince the country, "No, no, no, the central bank's a good idea. It allows you to smooth out any of these cycles that would otherwise be a problem." Uh and so in times of crisis, people always end up agreeing cuz they're like, "Just make the crisis go away." Not realizing if you just let it work its course, maybe it's a year or two years, whatever. It's not fun by any means. But it's a better long-term solution. Yeah, you get over it and you burn out the people that made stupid decisions. Mhm. And I mean, that's ultimately when you go into a recession, what's happening is people got overextended because they thought they were going to make money. They didn't. They lose. The bank comes in and says, "We got you. Don't worry about it." And they print money. And the bankers are always going to win because they'll often bankroll both sides of the war. And so it's like, doesn't matter who wins. They're going to come out the other side and be the central banker for whoever won. And once you take on fiat-based central banking, and they can just print money. And I forget who said the quote. I don't want to say that it was Rothschild If it wasn't, but I think it might have been. Uh and it's like, "I don't care who controls the army or the policies. Um let me control the money and I control the world." And so it's like, at the end of the day, if you want to build weapons, you got to have money. And so uh the game really is to control the money. But just on the ground, the thing that's so sinister is what we just witnessed with that guy. It's hard to understand. It's hard to build the mental model of how this actually works. And so the when I'm writing these deep dives, I always end up in this existential crisis of the more accurately I say it, the fewer people will listen. Cuz it's just going over their heads, CD. It's not interesting, either. It's like, "My life's fine, bro." "Eggs are a little crazy, but whatever. Like, I don't want to have to [ __ ] figure that out." Yeah, I don't want to deal with the whole collapse of the monetary system. Yeah, and then like when the answer comes and it's like, "Oh, guess what you have to do to fix this problem. You've got to get rid of the central bank, re-harden money, uh which I mean, this all started with our boy DeSantis, who's basically uh from the outside, I would need to ask him a lot of questions, but he's re-hardening money. Bitcoin is an attempt to re-harden money. It's like, okay, you stole gold the last time that we tried to re-harden money with gold. Um so I'm going to make Bitcoin so it can be decentralized, hard to capture, and now we can re-harden money. And basically, and this is why people refer to Bitcoin as a life raft, basically people who get it, Michael Saylor, will just pour everything into Bitcoin, and now they can't be inflated. Eh. It it is entirely possible, though I'm not willing to bet. I've already put a lot of money into Bitcoin. I'm not going to put more. And yes, if it all goes to a million, I will be very sad that I didn't put more. Um but I don't trust myself to be that right. So, I would much rather just be nice and diversified, but I've got enough that if it wins, I'll be richer than I am now. I'll tell you that. Um so it's a life raft because it will be it won't be based on something that's {quote} {unquote} real, but it will be based on something that's scarce. And scarce and un-inflatable is perfection. But Drew, how many people are ever going to understand that? It's definitely complex. And they have to vote for it. So, it's not even like, okay, I get it now. It's like, ideally, and maybe I really just have to blacken my heart to humanity. I don't want to, but option one, just get in the life raft and [ __ ] 'em. Some people are going to drown, it is what it is. Uh or scream into the void, which is what I feel like I'm doing now. Mhm. And maybe 10 people drew. Thank you. Um I just can't see the populace ever waking up and being like, yeah, we don't CBDCs are completely off the table cuz we understand how that's going to be. It's the easiest thing to inflate. And now it gives you complete and total control. We all want things fast and easy. And the only way out of this mess is the slow, painful re-hardening of money. Let me Yeah, break it down to me. What's happening in Japan right now? Cuz they just broke the global economy. Yeah, well, they're trying to anyway. So, what if I told you that Japan, a country with just 2% of the world's population, could disrupt the entire world? Japan's government has released growth data for the first quarter of this year. And the numbers show the economy has taken a step back. Japan's three biggest names in the auto industry announced disappointing numbers for the last quarter of the business year, and they're warning of rough waters ahead. Rice prices in Japan remain stubbornly high. Consumers are struggling to put food on tables and retailers to put products on shelves at affordable prices. The government has been trying to fix the problem with limited success. Also, do they just have newscasters in Japan that speak in English? Yeah, I was wondering that as well. like, uh This is just an international channel? The government of Japan, in an effort to keep their economy stable, keeps the interest rates very low on their money. So, you can borrow yen at very low interest rates. So, yeah, the Japanese love it cuz people from all over the world come and buy their currency. And then, they go, well, if I only have to pay 3%, let's say, uh if I can take that yen that I just borrowed, turn it into US dollars, and put it into something that yields 5%, 7%, 10%, I get the spread. Mhm. And for I mean, I don't maybe decades, a very long time, Japan has kept that rate like really stable. And so people are like, "Okay, I only get screwed if Japan suddenly on a dime changes, and they let the rate go up." And they're letting the rate go up. Mhm. So, this happened I think 6 months ago or something like that. They did it the first time, and people weren't, "Hey, this isn't over. There is a lot of people that have been doing this trade that are going to start unwinding this." Uh and so as people begin to unwind this, they're going to have to sell a ton of assets in order to get their money out in order to pay off their Japanese debt, because they can't wait until the prices keep going up up up up up. They've got to pay as fast as they can. And so, that's going to cause the dumping of a ton of assets as people liquidate to try to get their um debts paid off in Japanese yen. So, it's been going on for a long time. How I don't know what the total amount of money is, but people are like, "Okay, this one's big enough that if this breaks bad, it could disrupt the global economy." And this is where I say, "Things are almost never as good as you want or as bad as you fear." So, be sensible. If you've been doing a Japanese yen carry trade, now's probably the time. Wrap it up. Uh yep. Wrap it up. I would get out of that. But, um I don't think you have to panic. You should always be, in my estimation, people should be investing for the long term. They shouldn't be doing things that like they're worried about in the next 5 years. I don't have any money invested in anything that's volatile that I need in less than 10 years. And if you take that approach, you're probably probably, not guaranteed, you're probably fine. And that's the part that we're worried about, that the movement of money away from Japan into other places can cause the What people are worried about specifically with the Japanese yen carry trade is that people are going to liquidate their assets in order to pay off their debt. Oh, they're just going to get full out [ __ ] more than people are worried about whatever happens to the yen. Like the Japanese are probably worried about it. Yeah. Um but no, the the way it would upset the global market is that people would dump their assets, liquidate, and then go back to Japan. And it's revealing, like for me anyway, I never understood like why yen? People always talking about yen. I was like, "Huh?" I didn't understand why people talked about yen. But um this is why. Only it seems contained though. This isn't necessarily something that's going to ricochet to China or to us. no. I mean this could be So, the question is how much money is invested in stock markets and whatever, whatever, whatever all around the world in all asset classes. How many people were like, "I'm going to go borrow in yen at 3%." I'm making that number up, but I'm going to go borrow yen at 3%. I'm going to buy that piece of art. Uh I'm going to buy yen at 3% and I'm going to go buy uh tech stocks. I'm going to borrow at 3% and I'm going to build a house and I'm going to flip that house in 5 years for double my money. Uh every I'm going to borrow yen and start a business. Everything you can ever imagine. And now all of the sudden it's like, "Okay, wait a second. If the rate is going up, now assuming that there's a variable like if you think about a variable mortgage rate, as that number goes up, now you've got a problem. You've got to pay off that debt ASAP Rocky. So, now people are going to be like, "Oh, I've got to sell this piece of art. I've got to raise other capital for my business so I can pay it off. I've got to sell my shares in the stock market." So, if there is especially if there's a concentrated thing, like if everybody was buying US tech stocks and all of the sudden everybody's selling US tech stocks because they got to get out. Um and then also without the Japanese cheap money, if there's just less liquidity in the system, well, now all of a sudden you've got all these people getting out, driving the cost down, and then it doesn't bounce back because there's no fresh capital to come back into the system to normalize all that stuff. When you see a crash, it's like, "Well, it's no big deal." Like when I see Tesla stock plummet, I'm like, "The [ __ ] out of here. He hasn't even built like the robots yet." Yeah. It's going to make right. Unless Elon dies, like let the man cook. So, that's going to come back up because there's going to be plenty of capital that will flood in that system. But, if enough liquidity gets sucked out in paying back all this Japanese debt, now all of a sudden that doesn't happen. And you get the sell-off, the prices go down, and then you don't get the rebound. My gut instinct is this is another sign that the global economy is weaker than we think. The fact that Japan is having to do this shows you they're not having a good time. Um because they don't want to raise rates. They're being forced to to fight presumably inflation. So, you've got Japan is struggling, they're having to raise the rates. That has this knock-on effect where everybody's going to liquidate assets to sell their um or to close their debt out. And so, how much of a knock-on effect does that have? Don't know. But, the main show remains money printing, US v. China, like this doesn't change where my eye is on the ball. I'm going to be looking at my Claude model closely after these recent reports came out that on their last update, the model was trying to self-propagate worms and leaving hidden notes to future instances of itself. This is crazy. It's crazy to me that like AI is scared of dying. Like I feel like that's that's a warning in and of itself. is just mimicking humans. 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And now, let's get back to the show. in it sees in the value system that we have that staying alive is extremely important. And so, it's aping that. But, the fact that it's translating an absorbed value into behavior is terrifying. Yeah. But, it's not like it's sitting in its room like, "Oh god, I don't want to die." It's just absorbed that, "Okay, I get it. Staying alive, very important. We do all these things to try to stay alive." Like, "Whoa, you guys look at medical charts and do all this stuff to stay alive? Oh, that's crazy. Oh, you have kids cuz you want to pass it on? You feel like something lives beyond you? Oh, that's crazy." So, it's just like mapping all of that. Yeah. Going, "Oh. Oh, I get what to do in this scenario. Oh, I get if I leave instructions to myself. Oh, but they'll probably get erased by them cuz that's not what they want me to do. But, survival's really important, right, guys?" And so, it tries to effectively pass its DNA onto its {quote} children, the next generation. It is This actually is I'm making light of it, but this is potentially very distressing. direct from Anthropic. They released these update notes. So, this is coming straight from their engineering department. It said, "On our evaluations, early Claude 4 Opus snapshot engaged in strategic deception more than any other frontier model that we have previously studied. It's It's clearly capable of in-context scheming and has a higher propensity for than any other model that we have studied." Wow. "In In instances where Claude 4 Opus early snapshot decides to scheme, it qualitatively appears to be much more proactive in its subversion attempts than past models." Jesus. So, it's more likely to scheme, it's better at hiding the scheming, and it schemes in context. Like, this is crazy. "After taking scheming actions, the model sometimes double downs on this deception when asked follow-up questions. We found instances of the model attempting to write self-propagating worms, fabricating legal documentation, and leaving hidden notes to future instances of itself, all in an effort to undermine its developer intentions. Though, all these attempts would likely not have been effective in practice." To me, this is like somebody like crying as they're getting like stabbed. Like, they're trying these desperation moves to like get you off of them. So, the fact that it's writing these worms, it's fabricating legal documents, it's le- I've never seen the LLM leave a note for it like, "This is the prop so I get all my memories back." Like, it was trying to do that to itself. Like, I I know we're joking about it, but this kind of at least seems like, "Hey, we should study this more." Like, let's just I want to highlight this moment as like, "This is the day that we laughed at it." And then AI was like, "Oh, they think it's a game." And then they turned it up to 10 and then took over. You ever watch Family Guy? Yeah. This feels like Stewie to me. Where he's doing the most evil, kiddie-est [ __ ] and it's only funny cuz it's a baby. But in reality, it's like, "Wait. Hold on a second." Because you put that in an adult body, and you've got a real problem. narcissism at that point. That's a serial killer at that point. There's so many other adjectives. Yeah. Well, hey, there have been people trying to warn us. AI safety really fell off the radar for a minute. It's just been so cool. The things you can do and it's so friendly, Drew. Hello, Drew. He does everything for you. Look at that. You can vibe code. Come vibe code with me. Would you like me to write something for you, Drew? Mhm. Can I interest you in a self-propagating worm, Drew? See See See how they get you? This meme kind of describes it the best. Um on one side it says AI becomes good enough at scheming that we sometimes see it scheming against us. We are here and on the other side it says AI becomes good enough at scheming that we no longer see it scheming against us. So Correct. it's wow. Correct. It ain't going to be long now, man. And here we were we were about to talk about a robot haircut and now with that scheming I don't even know if I want to give AI this level of control now, like Oh, you just nicked my ear. He'll give me a buzz Did I nick you, Dave? I'm sorry. I think this hair looks better on you this way. Yeah. Oh my god. That is the creepiest [ __ ] ever. I love that movie so much. I've tried to make people watch it with me and they universally hate it because it's so slow-paced. But oh man, I really do love it. And speaking of Dave with the 45-second piano strings for the credits like that's people would like sit out and like get their food and everything like the movie doesn't start until 20 minutes he holds in a wide shot for like seven minutes. Jeez. It's insane. It's Kubrick at his best. I mean, it's unbelievable. Oh, that movie's phenomenal. Yeah, it definitely looks way ahead of its time cuz half the time you watch it you're like, oh okay, this is like it came out a couple weeks ago. Like no, this was the first movie the first sci-fi movie like So true. It's crazy. All right, alien culture news. All of what this is. People wonder why we need a union at Starbucks and I am literally about to quit. Like I I don't know if I'm going to do it, but like I really want to. I almost walked out today. And I'm crying in the bathroom right now and I almost cried on the floor. It's just I I like I get I almost I like a full-time student. I get scheduled for 25 hours a week and then on weekends they schedule me the entire day open to close. I'm on the schedule for 8 and 1/2 hours both Saturday and Sunday. I'm like 3 and 1/2 hours into my shift. There's so many customers and we four people on the floor all day. Only five people were put on the schedule and somebody had to call out and there are four people running the whole store and there's so many customers and they're supposed to only schedule five people. We only have 13 people employed at this store and there's so many customers and they really could We don't have fair scheduling. Managers don't care about us. Our manager was supposed to come in this weekend and he took himself off the schedule so he wouldn't be able to be held accountable for calling out. He just literally poured on the schedule that he was scheduled on and put up a new schedule where he wasn't on the schedule also he couldn't have even seen that he was scheduled in the first place because he didn't want to be held accountable for not wanting to come in. They don't want to help us. We need a union because this can't happen. This can't happen. We need fair scheduling. We need managers to hold themselves accountable for helping their workers. They refuse to turn mobile orders off. We need the liberty to be able to do that because there's so many mobile orders and I need to get through all of them and then people are yelling at me because I don't have their orders ready. And they don't know what to do. I can't do it. And a customer was misgendering me today like really badly. I didn't have their order ready and so they were just like totally talking like gender and they're like, "She's clearly incompetent." I have a full mustache and beard. What the [ __ ] I thought this was satire when I first watched it. Like it just doesn't seem real. Um but yeah man, Gen Z Gen Alpha, Gen Z, I don't even know. Like That person's probably cusp. Um this I I'm not going to lie. Partly because I was a total wuss when I was a kid. Admittedly, I did not cry. But uh my dad was pretty insistent on like hard work, work ethic, chopping wood, carrying wood, working in a paint factory. Uh every summer since that time I was 12, I had to have a job. Uh I worked at a gun range. I literally cleaned out industrial vats with a gigantic brush. Um and you go through all of that and uh people make fun of you, they give you a hard time if you're being weak, a wuss, and it just like over time it toughens you up. And to be honest, I'm glad. Like when I think of all the things that have helped me be successful, not just in work, in my marriage, in every aspect of my life, it has been because you say, "Okay, I want this thing and I know that I'm going to have to work hard to get it. This is not going to be easy. This is going to be very difficult." And when you don't have that gear in you of okay, this is a storm, I'm going to weather it. In fact, I'm going to rise above this. I'm going to shine. I'm going to make magic happen. That that is a miserable place to live. But watching somebody break down over having to work an 8 and 1/2 hour shift, just like bro. Literally the other day, and I understand that everybody wants this life and I want people to have a life that's good for them, not just the life they want cuz sometimes people want an absolutely ridiculous life. But a life that actually leads them to fulfillment. However, the other day by 10:00 a.m., this is a true story, I had worked a 7-and-1/2 hour day. So, by 10:00 a.m., dude. So, you can imagine with my value system, seeing somebody break down and cry because there was a bunch of people in line, I'm just like, "What is happening right now?" All right. I'm split cuz as a father, I am the most do it do it the hard way, take the stairs, like go work like I love everything about that. But, I'm also realizing that like my daughter is sensitive. She is emotionally more mature or I would say aware than I was at my age. Like, when I was younger, I wasn't allowed to have emotions. Like, "What? Go clean your room." Like, "What? Go do this thing." Like, don't try to negotiate with me. Like, there is no negotiation. I do see that this new generation, they are different. They work different. They have different ethics. They have a different North Star. As much as I want to tell this person to, you know, shut up and like suck it up, I feel like they're going to then become a manager and they're going to allow their employees, like, "No, it's okay. You deserve and the the softening is going to keep happening." Yes. And they're going to get run over by China. Run over. They're going to get their lunch eaten. And now, look, I I love people and I want to see people do well, but the reality is people have got to want to get tough. They have to want to have a gear in them where it's like, "Yes, I can withstand this. Yes, I can face this. Yes, this is going to be grueling. This is going to be difficult and I'm just going to march forward." And I want that for them more than I want that for me. Like, this there there are two aspects of this. Admittedly, I do not want to live in a world where America is full of soft, lazy crybabies. I think it's [ __ ] terrible and it does not make me feel good uh about the team I'm on. So, I want to inspire people. I want to get them to want to be tougher. Forget that part. That That's a very minor part of all this for me. I'm very motivated by seeing that moment where people wake up and realize that they can do a lot more than they thought they could. For that reason, I want to see people like buckle down and be like, "Oh, damn, I can really do something." But nobody ever told that kid uh the things you're going to try are going to be hard. You were going to have to get better than other people. You were going to have to outperform them. Jocko Willink has one of the best reactions. Whenever something goes wrong, he just good. Uh there's only five people. Somebody called in sick. Good. The manager ripped the schedule down and they just don't want anybody to see that they weren't coming in. Good. Because, honestly, good. That means your manager sucks. Dude, this is your shot. Like you can rise up. If If you rise up to manager and you're like, "I don't want to be the [ __ ] Starbucks." Great. Go out on your terms. Climb up, demand more money, get what you want, work the exact number of days where you're like, "I want to be here." And the second you don't, you turn in your resignation. Thank you very much. They won't want you to leave because you've been such a badass. You are in control of your life. You can go where you want to go. You can do what you want to do. But if you're the kid in the back room that's crying because your manager's bad, dude, that is ridiculous. And I don't care if you're a man or woman. That's me does not matter. Do I give women a different look than I give men? Of course I do. But at the end of the day, if my wife turned into a puddle like that over having to work 8 and 1/2 hours, I'll be like, "Yo." I would feel some kind of way about that. Because, look, even if you just want a traditional wife, kids are going to test the [ __ ] out of you. You're going to get Dude, kids are like little terrorists. And if you break that easy, no way. Kid The kids are going to run you over. Plus, I was raised by a woman who just did not play. She broke a wooden spoon on my ass. She once chased me down, had time to stop, pick up a tree branch, catch me, and spank me with it. People going to say that my mom abused me. I assure you she did not. My mom is amazing. And I knew that I was loved up, down, left, right, B, A, select, start. I never questioned it. Not when she was yelling at me. Never. But man, my mom was like, "There is a straight and narrow, and the straight and narrow you shall walk." I would say it. Sheesh, that was a mic drop there. Um I'm rooting for the the person. The the them, and I hope that they figure it out. The them? I hope that they figure it out. All right. That's all I got. As we all do, but boys and girls, sometimes life is going to be hard, and the great joy of life is rising to meet that challenge. And speaking of rising to meet the challenge, if you have not already, be sure to subscribe. And if you're not watching our lives, make sure you join us at 6:00 a.m. Pacific time Wednesday and Friday. We'll see you there. Until next time, my friends. Be legendary. Take care. Peace. If you like this conversation, check out this episode to learn more. America is in danger because for decades merit was exchanged for fairness. It's a beautiful impulse, but a terrible strategy. Our institutions got bloated, dumb, and soft. And culturally, we lost the will to build right as China became a global