Submind YouTube summaries
Thumbnail for This Is the Biggest Lie in American Politics | Tom Bilyeu Show

This Is the Biggest Lie in American Politics | Tom Bilyeu Show

Watch on YouTube

Video summary

The podcast opens with a sharp critique of current political figures, specifically targeting Senator Elizabeth Warren's endorsement of Zohran Mamdani and his platform to raise taxes on New York City's wealthy residents. The host argues that such policies are economically illiterate, noting that raising taxes will simply drive high-income earners and businesses away from the city toward locations like Austin or Dallas, thereby reducing revenue rather than increasing it. This argument is extended to a broader cultural observation about how politicians often prioritize populist rhetoric designed to make voters feel good over practical economic solutions. The discussion highlights a stark demographic shift illustrated by data showing that home ownership rates for married 30-year-olds have plummeted from roughly 50% in 1950 to approximately 5% today, suggesting that current policies may be actively dismantling the traditional family structure and middle-class stability. The conversation then shifts to extreme ideological positions held by groups like the Democratic Socialists of America (DSA), which are described as advocating for "family abolition." The host details shocking statements made at a DSA meeting where marriage was equated to prostitution based on contract duration, children were framed as state property rather than belonging to parents, and abortion services were proposed within churches. These views are presented not just as radical but as indicative of an authoritarian mindset that believes the government should control every aspect of human life because it assumes its own infallibility. This connects back to a historical analysis by Jordan Peterson regarding R.J. Rummel's estimate that governments killed 260 million people in the 20th century, illustrating how leaders who believe they know best and demand implicit trust often lead societies toward catastrophic outcomes through totalitarian control disguised as benevolence. A significant portion of the episode is dedicated to economic theory regarding fiat currency versus a gold standard, featuring insights from Ray Dalio. While acknowledging that returning to a full gold standard immediately is unlikely due to current debt levels, Dalio suggests that history shows cycles where governments eventually devalue their currencies so much that they are forced to re-link money to assets like gold or real growth. The host and guest discuss the "growth versus pain" dichotomy facing the nation: either achieve massive economic expansion through deregulation and AI-driven productivity gains, or face a painful reset involving mass unemployment and debt defaults. This analysis is paired with warnings about algorithmic surveillance in Europe scanning encrypted messages to protect children, which serves as an example of how elites use control mechanisms like censorship to regain dominance over the narrative once social media breaks their previous frame-control strategies. The discussion also covers political maneuvering regarding redistricting in Texas and across other states, where Democrats are protesting Republican gerrymandering while simultaneously engaging in similar practices when they hold power. The host argues that both sides of the aisle treat politics as a pure game of power rather than serving constituents, leading to escalating tactics like Governor Greg Abbott removing Democrat legislators from office for refusing special sessions. This behavior is framed as part of a larger trend where politicians act more like marketers selling feelings and narratives than problem solvers, utilizing "entertain me clown" rhetoric that disconnects policy from reality. The segment concludes with a look at the rapid advancement of AI and automation, citing an example of a McDonald's franchise owner who reduced staff to five people using technology, potentially eliminating hundreds of thousands of jobs nationwide within years if this trend continues across all industries. Finally, the podcast explores how these technological shifts will reshape human experience through virtual worlds and interactive media, drawing parallels between Ozzy Osbourne inventing modern metal music and AI creating personalized narratives that adapt in real-time to user engagement. The host expresses concern about a potential "nuclear winter" for those unprepared for job displacement but sees hope in new frontiers like nuclear fusion energy and space exploration on Mars as places where people can find purpose again when the physical world becomes too easy or meaningless. The episode closes with relationship advice, emphasizing that emotional escalation must be met with logic and de-escalation rather than passive submission to toxicity, warning against relationships where one partner seeks to belittle the other under the guise of "happy wife, happy life," which ultimately metastasizes into a destructive dynamic akin to cancer.
Read the full video transcript
Trump sends nuclear subs towards Russia and Trump tells Putin to end the war or face secondary sanctions. Senator Warren goes on record as not understanding the economy at all. Ray Dalio says he could see us returning to a gold standard. You tell you that one. The Democratic Socialists of America want to abolish the family. You heard that right. And Texas Democrats have dipped out of the state to stop redistricting. That and more as we get into it. >> So this is Senator Warren on CNBC today. She recently has been promoting and endorsing Zohran Mamdani. He is the infamous now socialist candidate in New York City. This is her on CNBC Market Alert. You mentioned Mamdani and you were on New York sort of talk speaking on behalf of him to a certain extent. You know, I wonder though often we see this and this is a local election. New York does not operate in a vacuum. It competes with other cities and so this idea of somehow raising taxes on the wealthiest New Yorkers who by the way I would point out pay roughly 15% of their income right now between city and state. Raising taxes on them will simply drive them away. Shouldn't the focus of a mayor be on delivering services to the constituents of the city and doing that by raising the most revenue as possible without chasing businesses and the high income taxpayers out of the city cuz they can go to Austin. They can go to Dallas. They can go to Atlanta. They can go to Nashville. This is your issue. It's a national issue not a local issue. >> The issue is affordability. >> What would you say to the response to that before we even hear her answer that a mayor should kind of focus on those local services versus it being a national issue of kind of the taxing the rich argument. Well, so on that I'm not even sure what he's trying to do. New York is obviously the most important city in America. It is the financial center not just of America but the world. I mean look, China is obviously competing with us now but it it is such an incredibly important place that whatever they do is going to matter certainly across the country and potentially internationally. So that like whatever, but yes, as a mayor, you need to be thinking locally regardless of whether this reverberates or not. But if people want to know why we're paying attention so much to that as a local politician, same way I feel about California. When I see Newsom do something, I don't think of it as a local issue. I think of it as okay, this is he's the de facto leader of the Democratic Party in terms of he's got the biggest state in the union full stop and he's running a very much left-leaning Democratic playbook that all the other Democratic leaders are going to be looking at. So that's not weird to me to treat that as a a broader issue. And Mondani, because he's so tied to the DSA, which we're going to talk more about today, to me it's it's all eyes on that race as a proxy for understanding where Americans are. And all right, let's hear Elizabeth Warren's response. The issue is affordability. Do you know how many working families are chased out of New York City every day because they can't afford housing, they can't afford groceries, they can't afford child care? What Zolan is saying is I want people to be able to afford to live in New York City. That's what keeps it a vibrant city. That's what makes people want to live >> Nobody disagrees with that, Senator, but raising taxes in order to do it? Why is that the answer? Oh dear, are you worried that billionaires are going to go hungry? No, I'm worried that they're going to leave and spend their money elsewhere. >> they've threatened to do that over and over and over. >> have. They've left. I mean, and Goldman Sachs, when they create new jobs, they do it in Dallas. And Blackstone won't build a new headquarters. I could go on and on. You want to have a workable city. You want to have a city that's vibrant. You want to have a city where the streets are full, where there are things for sale 24 hours a day, then you need people who can live here and work here. >> that right now, by the way. I would point out New York is New York is is thriving. So, right now, it's doing pretty well, actually. >> do you think they're doing well? Because a lot of people are struggling to pay for housing, a lot of people are struggling to pay for groceries, and I got to tell you, mommies and daddies who are facing $25,000 a year to pay for child care, Those are national issues. I mean, I know they are the local state, but you can't use New York City city Yes, but if you deal with them in that way, by what is always your backup, just tax them more, they will leave. >> Mondaire is putting forward ideas. Think of it as like when um Vivek was running for office. He wasn't in office, but he was bringing a conversation forward, same with Yang. Uh part of the reason that people will run for office, even if they don't think they can win, is they can sway the national conversation. And if people don't think that people are swayed by the things that they hear, they are out of their [ __ ] minds. Like humans are uh pinballs in in a big way, in that we are This is my take. We are automata, but we respond to ideas. And so, when you have somebody that's aggressively putting out those ideas, it's going to have an impact, especially if it's aligned with what's actually happening in culture. And I think Mondaire is aligned with what's happening in culture. I think this is uh the fight. Uh it's arguably, depending on how you count culture in terms of importance, I think it is one of the most important fights that we're in. Uh even though politics and culture reinforce each other, and at any one time you could say that culture's being influenced by politics or vice versa, ultimately politics is downstream of what people believe, and what people believe is controlled by culture. So, uh yeah, we're we're in a cultural fight. There's delusion over taxes. We just heard Senator Warren um explain that she has no idea what actually happens in reality, uh as evidenced by history, when you start cranking up the taxes. Fully acknowledging that the mayor of New York is not going to be the one to up the taxes. But let's do that next step cuz I think what a lot of people are saying is like, "Okay, well, the billionaires can leave. That's going to open up opportunities for us. What are they What would the city of New York lose? How would they not benefit from people fleeing?" Like give me the second and third >> leave, what happens? >> If yeah, if billionaires leave >> pay for things. You're uh you have to start neglecting things. So, if you carry over uh the private sector to the public sector and you say, "Okay, let's look at what happened to the Bronx." Like when people think of the Bronx it's like, "Oh my god, it's like this really hard place." It did not have to be this really hard place. It became this really hard place because of rent controls. And so, they went in and they said to the owners of those buildings, "You're not going to be able to raise the rents." And the building owners are like, "Well, hold on a second. The plumber's not going to suddenly charge me less because rents are controlled. Uh if I need to do physical repairs, the contractors aren't going to charge me less. So, the building costs don't change, but now you're telling me that I can't make enough money to cover it." And so, they start not repairing things. So, if you want to watch New York fall into a state of disrepair, they'll start cutting things like police departments, fire departments, uh social work. Like you just start cutting all the things that cost money. So, you start looking at your P&L as a city and you go, "What can we afford? What can we not afford?" And unlike the federal government, which can just print money ad nauseam, the local governments can't do that. Now, they'll appeal to the federal government for sure, but then the money's still going to be printed and sent to them. So, either way you look at it, it's like do New Yorkers have to pick up the bill? Are we picking up the bill nationwide? Like does somebody in Arkansas really want to be footing the bill for poor decisions in New York City? So, it's going to cause a row to use a British phrase where people are going to be like, "The hell is going on?" So, and in the world's financial center for you to not be able to generate the tax revenue that you need is literally ridiculous. But I do want to bring up the chart that was circulating around the internet. This one chart has 26 million views and pretty much I I say it's a chart that broke the internet. >> Yes. So while we're talking about mom Donny, we're talking about tax not taxing the rich, we're talking about how the economy is booming but it feels broken. This kind of graph really it encapsulates how people are feeling at least about it. >> Oh, this this is not emotion. People are right and this graph is uber powerful. It's not even the most important statistic. Uh so but let's drink this one in. So this is estimated percentage of 30-year-olds who are both married and homeowners starting in 1950 and going to today. Uh so we were at 50% in 1950. We're at like what looks like 5% now. I mean it's just it is it it's a cliff. It falls off a cliff starting in 1990. It really makes me want to look up what policy changed in 1990 cuz it had a horrifying effect. Uh it was already declining. But 1990 is a cliff. Yeah. So policy has impact. Th- this is why we have to be careful. All right, the stat that I think though is even more important than that. You're in a high-inflation environment. You must own assets. 10% of Americans own 95% of the assets. 95%. So the stat that people normally talk about is, "Well, 60% of Americans are in the stock market, Tom. What the problem is?" The problem is having like a small 401k that's not going to do virtually anything for you, not understanding it, not investing in it more and more and more and more and more. Uh not being able to own your home is very different than oh, I make money at this [ __ ] thing. And most people don't make money because they don't understand it. And so they're I mean they make some money but it's very small. It's very passive. Uh what I am realizing as I get older is there are two beats. Beat number one, learn how to make money. Beat number two, learn how to invest money. If you know how to make money, great. I was never going to be broke because I know how to make money. But, I learned now I had all this money and I was like, I have no idea how to invest, like none. Mhm. And so, now you're uh beholden to other people. Now that I'm learning how investing works, I'm like, oh my god. This is exactly how you just outperform the vast majority of humanity. This is how the flywheel gets started because if you both know how to make money and you know how to invest money, ooh buddy, like you're in a you're in an awesome place. And if you are patient and you don't mind making your money over 20 years, bro. Nothing's guaranteed in life, but that gets pretty close. It just takes me back to your deep dive about how a lot of times we want people to increase the tax on the rich, but it's not necessarily to benefit the poor, to make things more affordable. It's just so that way they can quote-unquote feel it as well. >> want to punish the rich. Once you understand that, then it all makes sense. It's like, okay, why is Senator Warren clamoring for something that she knows isn't going to work? Because she wants to see them punished. And she knows the people that are voting for her want to see them punished. And so, her going on and banging the pots and pans about like, we're going to tax these guys, we're going to soak them. Oh, you worried billionaires aren't going to be able to eat? It's like, that's populist rhetoric. That's not somebody who actually cares about making a solution to the problem. >> Mhm. That's somebody who's just like, I know what people want to hear. I know what they want to feel. I'm going to make them feel that and I'm going to get reelected. And the bad news is marketing 101. Marketing is about making people feel what you want them to feel when you want them to feel it. That's what marketing is. And so, politicians, especially in a populist moment, are just marketers. And in the age of personal branding, you get a Jasmine Crockett who's very good at being outlandish and getting coverage and saying things that make the people that support her feel the way they want to feel. It literally doesn't matter if it's tied to reality. It's just does it make me feel the way that I want to feel. Look, I I really enjoy Asmongold and part of the reason that I enjoy him is he's outlandish and funny. And I'm like, it doesn't even matter if he's making any sense. Just entertain me, clown. Mhm. And so, that that gets rough when you see graphs like that and you realize, "Oh, policy matters." But we're in entertain me clown territory and the policies cascade off of entertain me clown. So, it's like, "Oh my god. Like, we're making people laugh. We're memeing them into voting for things that just make no sense." >> I I have I have one more thing. I'm sorry. Because when we pulling up the graph again, um shout out to my DJs, um we look at the home ownership of it all and we see the cliff that falls out, but we are not talking about the married part of this. And I think that the family breakdown is so so important. And then that's when we jump over to what the DSA that DSA meeting as well as the um Vivek um town hall I want to go into. Horizon wanted to perform abortions at a church. Hold on, cuz he's already said something so outrageous. He said, "I" Pause. Uh the audio's hard to hear. Just for a framing device, this guy says, "By the time it's all said and done, I want to see abortions happening in churches." Okay? Just so people hear what's being said. Bye. The only difference between marriage and prostitution is the price and the duration of the contract. >> We can fight for family abolition. We can imagine family abolition. Because we have seen black women endure it. Because we have seen >> Pause, please. We we got to take these one by one. >> The only difference between marriage and prostitution is a price and duration of the contract, yeah, quote unquote. >> Dude, this this is people who have this wildly antagonistic view of partnerships, of compromise, of the human experience. Kids belong to the state, not to the parents. A wife is in a prostitution arrangement with her husband just to get access to resources. I mean, this is we are all trapped inside of a frame of reference. And so, when they look at the world, they are looking at the world through that lens. And when you start making policy based on that lens, that the family is dangerous, that you want the government in every aspect of your life, that it should be totalitarian in the complete way that it envelops you. Politics? Bro. Like, okay, I'm not religious, but if somebody said, "I want God to envelop every aspect of my life." I'd be like, "I get it. Now, what your God calls for is going to determine whether that takes you somewhere positive or negative, but at least that's like a spiritual thing." When you insert government, which is simply about control, basically. Or organization of people. That's what it is. >> Yeah, you're saying like, "I'm putting the the notion of control to an ideology at the center of everything in my life." This is wild. Let's keep going. But, you know, it is to me it is the the institution of marriage can only exist alongside the criminalization of sex workers. Children whose parents are unable to provide either housing, food, or safety are treated as if they have committed a crime. >> Okay, pause. So, because we've seen, I believe she said black people and indigenous people abolish the family, we We it can work. Can someone please point to me where that has happened? And where it's yielding great results. Uh so that's crazy. And then um the she just said something about marriage. Um marriage can only uh exist because >> make sex work illegal. Hold on a second. I am not with my wife because I'm like it's at least free sex. That's nuts. Like if if prostitutes were legal, I would just be with prostitute that Risky sexual behavior doesn't turn you on to you don't want to just get a random every day from a street corner? That's that's that's why you're married. Help the the best use of help ever. What is happening? All right, keep going. So kids themselves are treated as if they have committed a crime if they're not born into a family that can support them. In addition to abolition of family policing, you argue for abolition of the family in general and say that the institution of the family acts as part of the the carceral system in the way that it reinforces children as property. I think the left is constantly surprised at how few people are you know ready It reinforces children as property. Um I don't want to keep dunking on them. They pretty much repeat the same thing. If let's let's let's act like right is for a second time. What has to be true for people to not just say this but to practice it, organize a tie in a hall, get together, mask up and talk about this in like 2025. Like You have to be authoritarian. You believe that you're always right. You believe you're smarter than other people that you see the truth in a way that they don't. Um that you should be trusted implicitly to create the system. Jordan Peterson had a great insight on this that I thought was shocking in how accurate it feels. Mhm. Which is he goes, "Okay, the 20th century alone, um R.J. Rummel um who is a political scientist and author and professor uh wrote wrote called democide, I believe, and it's about how many people were killed by their own governments. And in the 20th century alone, he estimates that governments killed 260 million people. >> Jeez. It's actually more than 260 million. So, it's like, uh and Jordan Peterson's insight was, "Okay, you look back at the 20th century, you see 260 million people dead at the hands of their own government, and you say, 'Well, but communism could still work. That wasn't real communism.' And he said, "Well, what they mean when they say that is, 'If I were running things, then this would have worked out.'" The level of delusion that it takes to be like, "Bro, give me the keys. I got you. Like, this is all going to be fine." It It's just like, this is one of those where I understand why people have an immediate revulsion to politicians who want to run. Because like, anybody that wants that is going to score so high on things like narcissism. So, people say that you always hate the person that's most like you. This could be why people on the left hate Trump so much. Is it just the same phenomenon? It's like, I know best. Give me the keys. I can't be wrong. Let's go. Let's go. >> And that's who Trump is, and then that's what we're seeing the Yeah, so they're mad. Cuz like, that's me. I'm the one. I'm better than him. I know it's more. Correct. We'll get back to the show in just a second, but first I want to talk about how to make eating well a no-brainer. There's a massive difference between good protein and garbage protein. A lot of people have never experienced the good stuff. Instead, they're gambling with grocery store meat that's been sitting around for weeks. That's exactly why I'm a ButcherBox customer and have been for a very long time. I've got multiple freezers full of my favorites like filet mignon, organic free-range chicken breast, wild-caught salmon, and of course, a whole lot of applewood smoked bacon. These are the cuts that my wife Lisa and I reach for every day to fuel ourselves. And now, ButcherBox is letting me send my favorites directly to your doorstep in the Bill U Box. You get these selections plus a few more and free bacon for life. Right now, you can get the Bill U Box plus free bacon for life and $20 off your first box. Just head to butcherbox.com/impact and use code impact. And now, let's get back to the show. Moving on, we got to talk about this Trump's thing of it all. So, it started with Trump tweeting this out last week based on highly provocative statements of the former president of Russia, Dmitry Medvedev, who is now the deputy chairman of the Security Council of the Russian Federation, I have ordered two nuclear submarines to be positioned in the appropriate regions just in case these foolish and inflammatory statements are more than just that. Words are very important can often lead to unintended consequences. I hope this will not be one of those instances. Thank you for your attention to this matter. Then he gave Russia a deadline of Friday, August 8th to come up with a ceasefire with Ukraine. Putin, through exclusive sources, talked to Reuters and said that he's not worried about any of the sanctions ultimatum or anything that's happening. He's going to keep going through this war until he captures these four regions in Ukraine that he thinks belongs to Russia. So, I'm at an impasse with my feelings right now because I understand Trump's need to end the war. I understand that he has to, you know, hedge his bets by moving the submarines into those regions. But you have the Russian you have Medvedev saying, you know, we're not upholding to any UN sanction, any NATO treaties. We can fire whatever missiles we want to get to our end goal. And then you have Putin saying, I don't care about the sanctions. You can sanction any oil people 100% doesn't matter to me. I want these four territories. Is that do you start a negotiation with that? Is that negotiating with a terrorist? Like it's Not worried about negotiating with a terrorist or anything like that. It's just you you are in the position that you're in from a realist lens. Putin is going to do whatever he wants to do up until he incurs either internal pushback from their value standpoint. So, they hit a moral wall that they're not willing to cross. >> Similar like what Israel's doing now, where like they're having pressure to Well, that's external stuff. So, you're only worried about the internal. So, you either hit >> own people are like uprising revolution type of >> Correct. So, every society believes certain things are acceptable and unacceptable. So, you're going to do the Vietnam War until enough people go, "This is morally repugnant. We've lost the will for this." And people know when you go up against the US that you can usually wear them down because the people in America have a value system that says war is ugly, war is horrible, and we don't want to be in them. And so, it's just a question of like with Afghanistan, do you have to wait 20 years? But, you're going to be able to wear our appetite for that war to nothing, and then we're going to pull out. So, Russia either hits an internal thing, probably not because he's a dictator. So, then that leaves sufficient force from the outside. And so, if I'm Putin, I'm going to signal as loud and clearly as I can, these are the things that I'm going to do. So, now everybody doesn't have to wonder like, "Am I a madman or what?" Even if I am, I'm not going to signal that. So, they don't have to wonder whether they're up against a madman. They're just going to be They're what they will run up against in their countries in terms of support for them, Europe, America, either funding or directly putting troops on the ground against him, against what Putin is saying, "I just want these four areas." So, people go, "Uh Uh they were USSR. Like, do we really like feel like we need to fight for that? I don't know." And so, it'll give people enough of that I don't know that like he'll probably uh be able to do it unless Ukraine can stop them militarily. Now, Trump is a fascinating wildcard because he just from the perspective of "Girl, nobody gets to talk to me like that." Like, he'll do things just because he doesn't like the way that you're handling the negotiation. And so, he Trump is walking around in a way that's like, "Okay, I am the biggest, baddest world leader on the stage. Everybody's going to treat me as such. If you don't treat me as such, then I'm going to draw a line in the sand." Now, you want a world leader that does that. And I expect to catch flak for that statement. But then I will point everybody to China. And I swear to God, if people go to bat for China, and they're like, "Yeah, but that's China, bro. Like, you can't like what do we have to do?" And they're reaching Yeah, [ __ ] This is how people act. And so, when it's your country, don't be [ __ ] surprised. So, he you want somebody that draws lines. Now, if they draw stupid lines, then you play dumb games and win play stupid games, win stupid prizes. So, he needs to be very careful. But the fact that he's got swagger, the fact that he's willing to draw boundaries, I'm here for. Now, when you start playing with nuclear nuclear escalation, everybody needs to be very careful. Here's where I don't trust myself. If I'm being completely honest, I am so convinced that they're not going to launch nuclear weapons on either side, that this is all theater, this is all posturing. It doesn't Putin knows, if you do anything tactically nuclear, you trigger everybody freaks out. Everybody freaks out. >> Everybody goes nuclear. >> Dude, the EU is all like, "Yep, we're funding this war to the high [ __ ] heavens. We are pointing all of our nuclear weapons at him. We are moving everything right to the [ __ ] border." Like, this is one where I with nuclear, I worry about a mistake. I don't worry about intentional firing. He is not going to intentionally fire. I don't think he would intentionally fire even if he thought I'm about to lose. I just don't think he would. I don't think he has enough disdain for his people that he'd be like, "Yeah, I'm going to kill 40 million of them." I just don't think he would. Now, again, I don't trust myself. I don't want to make policy. So, let's be very clear. This is why I don't run for [ __ ] office. So, I don't want anybody to be confused. I'm not a rule for me and not for thee. People should not trust themselves nearly as much as they do. You want to take everything on the masses. I'm not going to lie about how I feel, but I also don't think people should go, "Well, because Tom thinks it and feels it, I should feel the same way." It's not how this game should work, but that is how I view the situation. Do you think that the four territories that people Putin is saying, "I just want these and I'll be good." Is that legitimate or is that kind of like a Napoleon, once I just get this next territory, I'm good? >> How rich are you going to let him get? How weak is Europe going to be? How much do we stand up to him? He will take over the whole world if he does not run into sufficient stop. >> So, he's just talking. >> America will take over the whole world if we don't run into uh sufficient pressure. China will take over the whole world if we don't run into sufficient pressure. This is a human thing. This is why I'm saying, please, for the love of God, look at realpolitik. If you've never encountered it, I've done a deep dive on realpolitik. Type Tom Bilyeu realpolitik, the video will come up. This is how the world works. Everything else is confusion. Every leader will keep pushing until they hit one of two things. Internal value systems of the country say stop or you meet a force from the outside that you're like, "This sucks." Yeah. The reason Alexander conquered the entire world is that's what these people do. Uh the reason that Genghis Khan conquered the entire world was that's what these people do. They keep going until they hit a force that they cannot overcome. Like it That is the world. If you start reading about Xi Jinping, it is going to scare the life out of you because he simply he holds these little um meetings and he says to the Politburo, "This is what we have to tell the world right now." Mhm. And then as soon as they get strong, he's like moves the goal post. This is what we tell the world right now. And then when they get stronger, this is what we tell them. There will be a day if they're not stopped where Xi Jinping goes, and now we're taking Taiwan. Like that that isn't a question. And anybody that thinks that's a question does not understand human psychology, does not understand realpolitik, doesn't understand history. So, it all this information is there for anybody that wants it. So, Putin will take these first four because he has a story that he can tell about that that's going to be very good for his country. And then ambition will grow in the Eden, and if that works and he's recouped, he's licked his wounds, he sees a succession plan or feels like he can see himself living for another 15, 20 years, whatever, he's going to go, "Okay, cool. Like we need to regroup for a minute. We need to let our economy boom. Everybody gets fat and happy again." Then once they're fat and happy, we'll see. And if in the interim, EU is like now spending 3 to 5% of their GDP on military, he'll be like, "Okay, now's probably not the time." But if the EU gets [ __ ] eaten alive by unchecked immigration, they have just value problem up, down, left, right, B, A, select, start, and they're like just in total disarray, then he's going to be like, "Poland looks pretty tasty right now." So, the Dude, I just can't say it enough. People will go as far as internal values allow them. So, the the country's appetite for the war. And if there's unchecked You're watching it happen in Israel right now. Guess how far Israel's going to go. Until they're checked. That's it. I I don't understand the confusion. And by the way, guess how far Hamas would go. Until they're checked. So, it's just that Israel [ __ ] people up when people come to play. But that's the game. All right, keeping up with international news, Tommy Robinson got arrested again. Um he was detained last night for um some social media post and cited on the S179 online safety act. Um, that reads without reasonable excuse sent a message conveying information known to be false intending at the time of sending the message or the information in it to cause non-trivial psychological or physical harm to a likely audience. And then S127 Communications Act, a person is guilty of an offense if he A sends by means of a public electronic communications network a message or other matter that is grossly offensive or of an incident indecent, obscene, or menacing character or B because that any such messages or matter be so sent. How dumb do you have to be to make that a law? How is it possible that the country that gave us 1984 is becoming 1984? Like it's wild, man. So, yeah, I don't understand. If you don't have freedom of speech, you don't have the ability to think. You get two-tier policing. You get all these crazy like resentments bubbling up under the surface. Again, people are so convinced they're right that the government does not want to hear dissenting voices. The reality is you need dissenting voices to figure out what's actually true, what's actually working. Uh, and they don't want it. And so, it was startling to me to find out that America is the only country that I'm aware of that actually enshrined freedom of speech in writing in their constitution. Everybody else, they kind of allude to it. There's like a spirit of it, but they don't actually have it. The UK does not have freedom of speech very clearly. And they're arresting something like 35 people a day for tweets. Dude, you're in trouble. >> it's just getting it's just getting worse because chat control is a plan that was dead and now revived and this is another proposal from the EU. They would force apps like WhatsApp, Signal, and Telegram to scan every message, photo, and video starting in October, even if encrypted. France flipped to support. 19 of the 27 member states are now backing it. Germany's undecided, but if Berlin falls, mass surveillance becomes law by mid-October. The excuse, stopping CSAM. The reality, total algorithmic surveillance and the end of private messaging in Europe. So, they already have the laws, and now they're scanning texts, uh, even encrypted, at platforms to get it. So, it just seems like a pipeline for that. >> That law I just read. Dude, this this is imagine. Imagine being arrested for something that you DM a friend. Now, I know people are going to say, "No, no, no, that's not what this says." Ask does it make it possible? You already arrest people for what they post publicly, and now you're making sure that you can scan what they're doing privately. Why? For what? Yeah, for what reason? >> They're they're going to say it's to protect kids. I love protecting kids. Amazing. But, it is going to be used for all manner of thing. So, oh, man, you you get what you vote for. You get what you vote for. It's a non-trivial psychological thing to me, cuz I mean, in America, it's, you know, unless you're inciting violence, you're pretty much good. So, >> know why you have to put that? >> Why? Because humans at an individual level will do the dumbest things possible. And if you have to cater to every person who might be upset by something that you say, you will never be able to say anything. It it is bananas. Also, you don't know if I'm trolling you, or if I'm saying, "No, no, no, I'm really bothered by that." And honestly, who cares? Get tough. Like, you for real, for real, for real, the way that the human mind works, if you never encounter distress, you do not develop the ability to deal with that stress. And so, you've got to get tough, man. This is my whole some people need to to chased by lions hypothesis. Like, you just need things to be hard. Like, you need people to go through hard things. And because we've had easy money, I can't believe how much this matters. Because we've had easy money, because we've been money printing, all of that, people legitimately don't understand that money growing on trees would actually be harder than what we do. And so, the joke that people used to put forward to try to illustrate that money's actually hard to make just isn't true. It'd be way harder to make money grow on trees than it would be to print it. We just make it out of thin air. And so, because of that, it just feels like, well, this is a law of nature. This is how life is. Cities work, and streets are awesome, and we're safe. Nope, that's not how the world works. We did a whole lot of crazy stuff to make sure that we could create this world, uh and it will go away. Yeah, what Why do you think that is? Is it the internet? Is it social media? Because there are certain things that we take for granted. Even in America, free speech is being under is being attacked. And we don't realize until we see stories like this that like even calling Trump a dictator on media, you have that's a freedom. That's a right. That's something that you can't do in other countries. Even if you say he's the worst, and you say he's a PDF file, and you say all these other things, that's you have that privilege. That's something that not everybody can do across other parts of the world. So, but even that is now disinformation, misinformation. We people should only say these one things. I should be able to throw the means of production. I like there just seem to be this like >> Warm up your James Burnham finger for me. So, uh James Burnham gives the ultimate breakdown of what is happening right now, which is the elites forever have been able to control the things that we see and believe. I mean, dude, forever. Uh people think that there's something called objective truth, and there is, but it's physics. Everything else is interpretation. Given that we don't even understand physics well, it's it's just true. Humans don't know how to interface with what is objectively true, which means anybody who realizes, oh, I just need to control the way you see this thing. Doesn't matter what the thing is. I just need to control the way you see it. I need to control the frame. That they're going to win. And so you get very smart people who understand, oh, this is a game of frame control and then I can manipulate people as much as I want. Uh, and forever they've been able to do that. Social media is breaking that. So they need that control again. And so now they're using censorship and all of that to get the control back. And they will either they're either too dumb to recognize that um, they're actually driven by resentment and control. Uh, or they're just malevolent enough to not care that they're driven by a resentment and control. But the reality is they want control. They think they know best. They want control over you. And so um, they they somehow have a failure of imagination and don't realize that will be used against them. So all these people are trying to put rules in place that they think that they can use to um, keep you in check. You the pleb, you the peasant, you the dumbass. Like we're going to keep you in check. This is why Sam Harris, who I love and think is brilliant and I'm so glad he exists in the world. I was so distressed to see that he he has encountered the same fact that I have encountered, which is that many people in the world are dumb. And many people in the world are dumber than him. And from that he extrapolated, and so these people need to have certain things pre-filtered, pre-masticated because I, Sam Harris, do not want to live in a world where they get to be manipulated and then vote. And I'm saying, bro, you want to manipulate them too. You just think you that your manipulation is for their own good in the right direction. And I'm like, you can't do that. And so I am prepared to live in a world where people that are by every measure that you could possibly measure dumber than me. And the reason that I'm That's not me saying I'm at the top. I'm just saying there is a percentage of people that will from a numbers perspective be far larger than one. And so they will be able to uh, outweigh whatever vote I have. And I'm perfectly willing to accept that I'm going to live in that world because that is the only check against tyranny. And once you understand, you're the one that we have to worry about. I'm the guy we have to worry about. We everyone has to worry about themselves going, "No, no, no, I got this. And now just let me be in control for a minute." And maybe partly because I get to do that in companies and I'm like, "Yeah, no one gets to tell me what to do. I can do whatever the [ __ ] I want." And I see sometimes it works and sometimes it doesn't. And so in business I'm like, "Ah, I need to like get people's information. I need them to say the things that they think that I'm doing or dumb." And boy, oh boy, uh going up in the marketplace has just taught me super valuable lessons. No matter how smart I think I am, uh I'm never going to be able to outwit the collective. And so I try to always think through every problem in life through that lens. Texas Governor Greg Abbott has taken emergency action to begin removing the from office the derelict, {quote} {unquote}, Democrat Texas House members who refused to show up for a special session. For those people not paying attention, what's happening in Texas right now is Governor Abbott is proposing to redistrict the uh region. What that means is he's going to basically draw new political maps in order to increase the amounts of House members that the Republican side would gain. The way they know this is they'll basically expand red territories and shrink blue territories. Um this is a practice called gerrymandering or redistricting. In 2019, a Supreme Court um called it beyond the reach of federal courts for gerrymandering and then >> Technically, they didn't strike it down. They said, "We won't stop it." So they're saying this is a state thing, do your thing. And they pushed it down. So they upheld a local court's uh decision which then led to a uh whole avalanche of district redic- uh redistricting. Um now let's take it to Sean Hannity who broke it down by the numbers just how big >> uh, 1950. Uh, just how big um, the difference will be. So, hold on really fast. What What he's going to walk through here is basically um, the way to understand why gerrymandering matters is that depending on how you draw the lines, you can make it such that in your state, you're let's say that more people lean right. So, let's say 42% of people in your state vote for Republicans. But, in the state legislator legislature, you have uh, 17% of them are actually they have a seat. So, they draw the lines just in such a way that you like isolate all of the people that vote the other way into one space. So, they might win by like 98% in that one district rather than diffusing it across multiple districts which would have given them a majority in several other districts. So, you get very clever with your lines which if you're looking at your screen, you can see how they like like make these weird weird shapes uh, in order to ensure that all the people who were already going to vote red, they collapse down into one area. And all the people that were going to vote blue, you know, depending on who's doing the lines. Like obviously in Texas, they're trying to make it so that red's everywhere. Uh, so both sides are just as guilty. It's just a question of who's in power and is able to pull it off. All right. With that, Sean Hannity now walks through like, "Okay, they voted like the 42 and 70% example. They voted 42% but they only have 70% of the seats." He's going to walk you through I'm pretty sure it's state by state or a bunch of states anyway. Remember, one very very important pertinent fact that they won't tell you. Democrats across the country are up in arms over so-called gerrymandering in the state of Texas. This is the exact same practice not only carried out by Democrats in deep blue states for decades, but it has been mastered by Democrats. Matter of fact, let's look at the numbers. The numbers don't lie. Let's start with Gavin Newsom's socialist utopia of California. Republicans, they won 39% of the House vote, meaning for Congress. But they only got 17% of the seats. In Connecticut, look at this. Republicans won 40% of the House vote. Zero seats. Illinois, where Texas Democrats are now camping out. They have perhaps the most gerrymandered map in the nation. Take a look at that. In 2024, Republicans, they won a very respectable 47% of the statewide House vote. They only have 18% of the seats. In Maryland, Republicans got 35% of the statewide House vote. >> think we get the idea that this has been happening, will be happening, is a thing, but the question is, is this going to escalate? Is Abbott actually going to arrest people? And I think I made my thoughts very clear on everybody going straight to arresting people. I think it's a bad look. But it does seem that we just keep wanting to flirt with this. Now, again, because I'm so I haven't been in politics for very long. I don't know if this is like everybody always threatened to arrest everybody back to like the 1960s or if this really is the recent phenomenon that it feels like. This feels like it's escalating. I hate the way that they're both sides. Like one, don't run from the vote. Two, don't make your first attempt always to arrest people. Like if you want to put a reasonable amount of time on it, say, "Look guys, we get it. You want to draw attention to this issue, understand. Do your thing. This is how politics works. But if you're gone for more than whatever. Whatever is reasonable. I don't know enough about how these votes take place. If there's like some certain amount of time that they can Uh, like if they stall it for two weeks and then you can't vote for any more or something like that. Obviously, I wouldn't want them to be outside of that, but So, this this is also similar to the Supreme Court appointee. So, I remember back in the I want to say it was like the '80s where Joe Biden, when he was just a senator, blocked a Republican a Republican's nomination for the Supreme Court. Um, he ended up getting over past. He tried to um uh, when they take over the filibuster >> filibuster. He tried to filibuster, ended up getting overruled. The Republican Republican nominee got in there. So, uh, Obama tried to have a a Senate a Supreme Court Justice, his got blocked. Trump's got blocked. So, then we kind of keep doing this tit-for-tat thing. The thing that I'm I'm frustrated with this is this entire argument is how why I like why I hate politics, why I think the red team blue team is all just a distraction, and while like they don't actually care about you, although they might say tax the rich, they might say things that make you feel like they're paying attention to you, they're not. This is a game of power, and this is a 100% a power game. And it's just now that the red team is in power, we're going to do as much as we can to redistrict and draw these lines, and the Democrats skipping town are the same things the Republican did when the Democrats tried to do it. So, I I I know that yes, this is a a both sides thing, and yes, it happens, but it's at some point we have to say, "Okay, guys, this is the game rules of the game. Now, let's work within that as opposed to every time the other side gets into power, we're trying to make special exceptions to the rule." It's like we're playing basketball and then one team wins and says, "Okay, now we can only take shots from this line." And then the next team can't make it, so then they win and say, "Okay, now you can only dribble the ball two times and pass it back." It's like that's you should be able to beat me at this game, but we agree that this is the game, this is the rules, now let's operate it versus everybody trying to like lawfare some special exceptions over and over and over again. So, how did the 10-year rule get set in the first place? That was one of those like historical things that was just >> It was just like this is how we do it. >> This is how it's always been done. >> it's documented anywhere or anything think it's >> constitutionally or anything like that. >> Yeah, I mean, look, I I'm with you. Like when you've got a settled set of rules and this is how we do things, um I'm all I love when people adhere to like these are the common practices, the whole idea of British common law. I love it. I love it. I love it. Um we're not in that moment. So, this is a populist moment. Everybody believes that they're fighting I mean, you hear all the time Donald Trump is an existential threat to democracy, blah blah. So, um I think both sides are being extremely unwise. This will be used against Republicans in the future. So, as long as they understand that, as long as they understand when, not if, when you find yourself out of power, they're going to do it to you. And so, I hope it's worth it. Yeah. But >> Uh thank you um Tristan Thomas. Before they would only do redistricting after the census. So, that's why it was every 10 years or whatever like that. Uh thank you um for articulating that. Um but yeah, man. They it's it's happening all the time. They break the rules and since the other times they break the rules it's gone. All right, let's get back to the gold standard. Let's go. This is let's uh hear from Ray Dalio, the man himself. It used to be the case that the US dollar was backed by gold. And the US government said, "If you don't like these pieces of paper, we'll give you gold." And ultimately, we we ended that. We're never going to go back to that, presumably, right? Probably presumably, that's right. But not if you watch these gold these cycles. That because you have the devaluation, then um people feel don't have confidence in the fiat system over a period of time. And through history, they've uh at that point, the way that works is you print all this money, then you pay the debt with the cheap money, and that but nobody wants to hold it. So, then they go back and link it again. It is conceivable that you can see uh a re-linking of gold to money, but that's way in the future. >> First of all, Ray is a national treasure. We need to protect him at all costs. It is It's really interesting to watch him talk about this stuff because he is the depth of knowledge that he has about how the economy works may quite literally be unparalleled. And he's like talking at this first grade level all the time. Like walking people through he's like you know, whatever 75 years old now and I just want to like pay it forward and I want people to understand how it works. And he can just do it ad nauseam just over and over and over and over and over. But this kid is a gangster. Do not for one second forget there is no human alive that has ever made more money betting on he understands where we're at in the monetary cycle. Nobody. And so here he is like this soft-spoken old man like it's like this guy's a savage. So the fact that he's saying that we in the future will probably I mean technically said we probably won't but then went on to say yes this is exactly what happens this is a cycle. What he's trying to hedge against is I think like me he holds hope that we'll find a way to back off the precipice at least for you know, I mean his time frames give us like another You've got like another 50-year shot to like be at the upper edge of where he's like no country's ever made it beyond this. But if we could punt for 50 years I'd be ecstatic. Cuz that certainly would get us on the other side of the yeah. Okay so it sounds like he's saying the cat maybe out the bag but it's not like a toothpaste out of the tube situation. Like the cat you can capture and throw it back in the bag. >> Yeah. It would it would scratch around it would be bumpy it would be a messy ride but you could get a cat back in. But so I feel like we were I love that analogy. That's what I was trying to like where's the toothpaste you can't re-toothpaste it. You're getting scratched. >> Yeah you see But yeah. I don't I don't think we can though cuz like Fiat going to Fiat. Like we're addicted already. Like >> Fiat going to Fiat, there's no doubt about that. Uh here's how it would happen. Right now growth is your only option. And so you cannot count on the Republicans, you cannot count on the Democrats to balance the budget. They're not going to do it. So given that no one's going to balance the budget, your two options are growth or pain. Both of those will reset the system. But the hope being that we get enough growth. I I had really held out hope in the beginning that Trump would slow the spend, but he does not show any signs of slowing the spend. But he is doing things that could unleash growth. We haven't unleashed enough yet that I'm confident that it will work, but the timing of him deregulating with AI maybe. That that's your only shot. Like that's the thing that allows me to sleep at night is okay. Like maybe maybe we grow our way out of this. That seems like it's an optimistic way that we can I almost never talk about it for that reason cuz I think people need to really focus on this is what's happening. It's happening today. Once I realized okay, we probably can't save everybody, but we can save individuals, then I'm just going to make that my pitch. Don't worry about saving everybody. Save yourself, save your family, save your friends, and whatever change happens will ripple out from there. Uh and I'm sure this is exactly what people in crypto have been trying to get me on board with forever, which is crypto's a lifeboat. I hate the analogy of a lifeboat cuz a whole lot of people are going to die in that very very cold water. And so yes, I'm glad that I have a boat, but boy oh boy, I don't like that there aren't enough boats for everybody. So Okay, so we have the growth versus pain option. What does a pain option actually look like? We default on our debt. We owe people a [ __ ] ton of money, but like mass unemployment. um I so I understand like physical pain, but from a fiat perspective would we eventually be able to default on our loans, get loan forgiveness, and then we'll have a fresh bill of credit? Like where how would we restart from a financial system's perspective, not necessarily the unemployment pain to the individual perspective? >> So once you default on your debt, the whole game becomes how do you reconvince people to invest in you? Uh it took Argentina 100 years. Just to give you an idea of what's at stake. Uh same thing, the story of Uganda absolutely fascinating. So Idi Amin comes in because of some shenanigans that the British were doing, Indians which made up less than 1% of the total population of Uganda uh controlled 90% of businesses. Damn. Jeez. So Idi Amin goes, "Fuck these kids. They're getting out." And so he boots 50,000 of the like 80,000 Indians. And overnight, their economy collapsed. And it was like, "Whoops." It's been 50 years. Their GDP is still stuck at $1,000 per person. To give you an idea, America is at like 86,000. So we're almost 86 times better from a GDP per capita perspective than Uganda 50 years after they were doing way better than they're doing now. So you've got Argentina, "Whoops, [ __ ] up." 100 years. Uganda, "Whoops, [ __ ] up." 50 years, still not back. Who the [ __ ] knows? Like those guys aren't exactly showing signs of repair. Uh so ah it's like you play with this one at your peril. Now, UK though, they did like a slow managed decline. And so uh World War II didn't look fun, but they come out of it. They feel good as a nation. We're We're not in a great place financially, but we're here to go through the '80s. They finally get austerity measures going cuz they had just I mean the pound is worth like some fraction of a cent from what it was before World War II, but at least I just brush it out, right? Over 70, 80 years and they finally get some fiscal discipline, but they're sort of a not backwater. They're not that bad, but like God, man, they they literally used to run the world. And so for America to have the equivalent fall would be freakish. Like I can't Where is England from a GDP perspective? Are they even in the top 10? I don't know, man. So it's like it's not the game that you want to play. Japan in the '80s, look at every movie in the '80s. It was always we're going to be Die Hard. His wife's company is owned by Japanese. Back to the Future, his dad works for the Japanese. It's like everyone just thought in the '80s we're going to get taken over by the Japanese because their economy was just go go going. And then it was like, whoops, that's right. The US dollar is the reserve currency. US starts putting a stick in their spokes and all of a sudden they stagnate for 40 years. So it's like, bro, this the economic game is hard. Once you get knocked off, if you don't have the right tools, getting back up is brutal. And so if we default, we lose reserve currency status and we no longer have the tools to get back. And so it's like it is such a dangerous game. That's why this is like, bro, we're talking about a potential 100 years of being like in in a very bad place. Nobody ever You can recover as like a regional thing, but you can have a hard time like getting back to where you were. Okay. Um Give us the canary in the coal mine. Like what's the one thing >> Housing. Huh? Housing. So, if the if another housing market goes, that's when it's time to >> no. If you want to know are things bad >> specifically, Tom. Like, you know, but like, what is like, okay, Lisa, grab your favorite things, gas up the private jet. Like, what's the one thing that you're like, yes, we are now collapsing. It's it's too late. It's over. It's a really good question. Um almost certainly it would be violence. So, if More revolution, uprising. >> Yeah, like if you start if you see um a couple politicians get dragged into the street murdered and people are like, word then bye. Um there's certain tax decisions that they can make that would make me leave California. I might not leave America, but I would beeline to a state that I think will be on the right side of economic history. Um Texas, Tennessee, Florida. Like, those are the ones that like, if this all goes to hell in a handbasket, they at least have first principle thinking on economics. Mhm. Um so, go there. Business-friendly would be the quick way to shorthand that. Um but yeah, those would be like the early signals. And I mean, look, unfortunately, we're already starting to see some of them. The fact that people cheered for uh Luigi Mangione, that is that was a very distressing signal about where culture is. Um but that wasn't like And like, the New York shooter, apparently like a BlackRock CEO got hit or like a BlackRock executive. >> Uh executive, yeah. Something like that. People were certainly here for it. But that that'll be interesting to see. I think he was suffering from mental illness. He himself said, I'm suffering from mental illness. Uh so, that one I won't lay at the feet of where culture is, but um the place where it scares me is the UK has had uh a politician executed. Um but it the society didn't get behind it. They tried to bury it, but they didn't get behind it. Um, Minnesota, obviously, if that like people had really been like, "Oh my god, this is amazing." Like that's where I'd be like, "Oh [ __ ] Like we're really start starting to go." Um, that's my cue. We'll be back to the show in a second, but right now I want to talk to you about how investment apps can actually destroy your wealth. If they're using gamification techniques to get you to make poor decisions, you are in a bad place. Turning push notifications for hot picks, giving you streaks for daily trading, these apps are designed like slot machines, keeping you addicted to trading instead of actually building wealth. That's why I'm excited about Alio Capital. Alio's built for independent thinkers who want to invest with discipline, not emotion, which is the only way to invest. Their Altitude AI focuses on what actually matters, inflation shifts, interest rate changes, global risk. It adapts your portfolio based on real economic forces, not market hype. Stop gambling with your future. Start investing with intention. Download the Alio app in the App Store or Google Play or text Tom to 511-511. Investing involves risks, including potential loss of principal. Past performance does not guarantee results. See terms and conditions. Text fees may apply. This is a paid advertisement. And now, let's get back to the show. All right, let's talk about AI. We've been talking about this thing all day, now let's actually jump into it. Genie 3. This was a Google DeepMind release. Google DeepMind just dropped Genie 3. It's It's funny. I was watching a keynote that the CEO of Perplexity did, and I forgot his name, and he threw shade at Google a little bit. And he was like, "There are seven Google institutions that are all releasing AI that it gets confusing sometimes." And like the crowd kind of laughed. But it's true, like Yeah. Because there's a Google team, there's a DeepMind team, there's a coding team, there's the notebook team. But uh, so the team that does VO3 isn't even the one that does Genie 3. It's crazy, but I say all that to say Genie 3 is an interactive 3D world pretty much assembler that just allows from a prompt. So you type in a prompt, it creates a 3D world and allows you to interact with it. So this first example that's on the screen now, a guy navigating to a car and then walking around to the neighborhood. Um there was another example um where yeah like you're you're painting a wall like This is I know this seems kind of like bare-bones examples, but the fact that all of this yeah it's just it's made up from a prompt that's just kind of crazy. >> doesn't If people are seeing bare-bones when they look at this, this is this is a shot across the bow to life as you know it from a content creation standpoint. The only problem left to solve in AI is consistency. Mhm. And the fact that they're able to make a world through it's it's not a video. It's a world that you can navigate, you can look around, and it has consistency where you can put a mark on a wall and you come back and the mark is still there from a prompt. Yeah. Dude, that Okay, I would like to remind everybody that I get it. I see the parts where this is terrible. Can I please remind everybody of where we were? Like what was it two Christmases ago? So we're about to hit the third Christmas with ChatGPT. I think that's correct. Came out right before Christmas. >> Yeah, 2022. And we're all of us sitting around being like, "Oh my god, this is wild. This is the most insane thing." And then you make a couple puppies like wearing a top hat and you're like, "Well, it's not that cool." Yeah. And now, two and a half years later you can prompt a world with persistence. Peop- people there there's something so weird >> vibe coding, not to mention all the spin-off companies that now do AI things. There is something so weird about the way that humans just acclimate. That's nothing. That's ugly. Looks like AI. What the [ __ ] Like it can Did you see that I send you? There's a video. It is like 3 minutes long. It is a single shot of AI. I didn't know that. >> 3 minutes long. Because all you have to do is create a video, grab the last frame, say start from this frame, and now do this, grab the last frame, and now do this, and you can just extend literally he could have made a 3-hour movie. Now, of course, it's awkward, it looks like AI, there are places where the character starts to look weird. We've gotten here in 2 and 1/2 years. This is improving at 300% not a made-up number 300% year-over-year according to Sam Altman who is one of the people closest to this. Elon Musk is trying to slap Sam Altman around. He's got the biggest AI cluster ever created. So, if Sam and his rinky-dink setup is 300% year-over-year, what's Elon and xAI going to be? We 350? 400? Dude, this is going so fast that as somebody spending a tremendous amount of money developing video games, I am like, "Thank God I have a rule in my life that says at all times you are moving forward. It is very okay to make mistakes. The only mistake would be to stand still." Because if I saw a persistent world where I'm like, "Oh, 3 years ago that would have taken me uh 18 months and cost $3 million and it's now a [ __ ] prompt." So, I get most people are just going to freeze. They're just going to be like, "Uh this changing too fast. I don't want to be part of this." So, right now you can already vibe code some really basic like think of it as a dungeon crawler. Uh it's so insane. I remember when the guy, and this is what 4 months ago? When the guy I think that may be a literal number. The guy coded the airplane game and like multiple people could play it and he like vibe coded the whole thing. It was very blocky, but it was like, yeah, it was an air combat game that multiple people from around the world could sign on and play and he vibe coded that thing. That's only 4 months ago. And you've now got XAI putting out this dungeon crawler stuff which I mean look, it looks like Super Nintendo. But we went from it doesn't exist 3 years ago to 6-ish months ago. It's like these super blocky things to now it like looks like a Super Nintendo dungeon crawler. It's like, bro, 6 months, 6 months. Uh, keeping the AI train going, 11 Labs music um just released a crazy iteration. This basically is promptable AI music and lyrics, history, uh, classical, um layered, uh, nothing was off the table and this is like the compilation video that they released. Are we at 2x or normal speed? Uh, normal. You got to you got to soak it in. That's what I'm saying. This is AI generated. 100% promptable. Remember, this is the terrible version of this and it is only going to get better. The thing that excites me about AI is that once you remove like that barrier to entry because it's so hard to do the thing, the novel ways that people will find to tell stories will be radical. Like things will move so fast, you'll have so much more variety in your world. Um, that's really exciting. There was I recently came across like this guitar player kid who I don't even know how to describe what he plays. I think there is a name for it, but um it's like this highly technologically like it's a kid who grew up with cyberpunk as an aesthetic bringing it back to like rock music? I don't I wouldn't know how to explain it. Um it's utterly fascinating. It feels almost alien. And that's what happens when you get like these super deep niches online where people start exploring, they start reinforcing each other, and it can just spread like wildfire, but you need that first idea that's like really bizarre. I was watching a micro documentary on the impact that Ozzy Osbourne had on the music industry, and he goes from Black Sabbath to basically inventing modern metal. And he leaves Black Sabbath and and just starts being Ozzy Osbourne himself, and it's really fascinating to watch or to listen to the last song he records as part of Black Sabbath, and then the first song that he records as Ozzy Osbourne. And people saw it, and they were just like I don't Rick Rubin said, and I quote, I don't even know what the music industry would look like if it wasn't for Ozzy Osbourne. Because it takes that one person to do, you know, him and Randy Rhoads together, and they create essentially a new genre of music. Cuz you give people this new sound that when you remember that wait, Ozzy was like a part of the like '60s and '70s vibe. Like it feels old, but then from one album to the next he sounds modern. And so it's like, oh [ __ ] like he literally invented that sound. Like he gave that first taste. Now people have taken it somewhere new, but you need that first person to make you go, oh, I've never heard anything like that. I want to play with that. AI is going to do that at the speed of light. It's going to introduce you to gameplay you've never seen before. Um, physics inside of a a game world that you've never seen before. Novels written from a perspective that's shocking and you've never encountered anything like that before. That like imagine a book that is changing itself based on the sentence that you reread twice. And it knows you reread it twice because of how long you linger in a certain area and it's got a camera that's watching your eyes and it knows right oh, you reread that part. I know what you're lingering on. I get the people that lingered on that when I show them this next, they really respond. And so you're reading the thing and you're like go how it feels alive. And if you reread the book a second time, you're going to linger on things differently and so now the story unfolds differently. Yo, literally I'm freaking myself out right now because I guarantee things like that are going to happen. That's a world that I'm excited about. How you were talking about that it's going to create new fractions of like information, uh, it reminded me of kind of the story the showrunner fable AI tool that is launching the AI for Netflix for AI where it literally we create a world, we create an ending and you might say I don't like that ending and then you kind of go and like change it and do things like that. Uh, I was literally talking to my friend and she was talking about I want to say she was talking about improv or something like that. I forgot what she was talking about she like it's like watching a movie but it listens to you when you like shout out things and I love that. And I assume like she was just saying it in a different context on something very minimum but that's what made me think like oh, there is a market for this interactive media. Like you like this thing, you like where it's going, you laugh at this part. Okay, let's make it a little bit more funny. You cry at this part, let's make it a little bit more sad. I was watching Cousin Vinny uh, for the first time yesterday and uh, super funny movie um, young Danny DeVito Marisa Tomei and there was a certain part that was serious but just because of the time that passed and the nature I love Joe Pesci just for the record. >> What I who I say? J- you said Danny DeVito. >> Oh, yes Joe Pesci, sorry. Joe Pesci. Um I was like, Danny DeVito, I remember. Uh But yeah, there was a part where like I laughed, but it was like a more serious part, but like that the eyebrow was moved So, I can kind of see this like organic twisting of content going forward that it literally relies on you to complete it, and it becomes more of a unique experience versus this everybody look at this thing that I've done and you're going to like it versus like what do you want? Let me give it to you and let me kind of serve you individually. So, it feels unsettling cuz I'm so used to the first way, but it's also in a sense um kind of rejuvenating cuz like, okay, well, if it is very unique to me, then maybe it'll be the perfect content, and maybe it'll finally be something that I like, or you know, you start to get excited about the possibilities, but I think the vast majority of people just like now aren't going to want to be creators. They just want to watch, but these tools are going to let creators make things that are really, really tailored so that it'll be like your friend group will be like, um watch the Drew variant of House of Cards, whatever. And it's like, oh, yo, the Drew variant? The Drew variant? Like, don't get the other one. Like, the Drewski variant is terrible. You want the Drew variant. The Drew variant, right? It'll be like that. And so, you'll go and you'll find you do the search and you'll look at it and be like, oh [ __ ] five star. It'll be like 180,000 reviews, and you're like, oh damn, I guess this is the one. And so, there will be like all these different versions of something that people will get into. It's going to be incredible. And when I think about like from a game perspective, one of the reasons that and look, there's a lot of controversy in the field right now about live service games. Hopefully, I can make people a believer that when done well, it's better, but the reason that I like game development is that it's iterative. The world is forever growing. And you can certainly like if people want to know that like I want this, you know, opening sequence locked in time forever, you can do like a time stamp or whatever, and here's the game, as it was then. But, the worlds get bigger and bigger and more complex, and there's more content. I forget what game is Baldur's Gate, maybe? Maybe not, I don't know. Anyway, one of those early MMO RPGs that like 15 years later, they're still building it. They're still adding new content. That is my fantasy. That is what I want Kaizen to be, where it's like 15 years of just more additive content that stacks. It's not like it's not just the reset. Like, I love the reset part of um Fortnite. I don't want to get rid of that. Long explanation for how we're doing that in Kaizen. So, you want some things that are like, it's this season, it's unique to this. But, you also want an amount of the world that's that's there, it's going to be there forever, and it's getting bigger, and it's just like I think that's incredible. So, with AI and the fact you can iterate so fast, and then if users can build, you really are moving towards Ready Player One. That was the thing I found the most interesting, was you you're exploring a universe. And because so much of it is made by players, essentially, it's going to be incredible. Yeah. Um and Hunter Biden, of all people, kind of grounds us on the other side of AI and the harsh reality of automation. In-N-Out is fine. You don't tip it at In-N-Out. >> I do. What, you tipping it at In-N-Out? >> Yeah, they have to wear those hats. You know what that feels like? Did you Did Serious Conversation I met somebody that is in the uh you know, owns fast food franchises. He has McDonald's for his 55 people. Mhm. Okay? He went all AI. Oh my god. >> Okay? It's about a $2 million investment per McDonald's, okay? He only employs five people now. Oh. So, his margins go up by like 27%. And he'll make back the $2 million investment in under like 18 months. Mhm. Think about this. There's about like 13,500 McDonald's in the United States of America. I did the math. If every one of them went down to five from 55, lost 50 on average 50 jobs, it's 600 like 70,000 jobs in America. >> That's just McDonald's. And it's just McDonald's. That's what I'm saying, man. And that's Not only is that just one company in one industry, it's going to be a whole lot of industries. Most companies in most industries are going to won't be 100%, but there will be a very meaningful percentage. Now, those people are still going to need money for now. And I think we're going to see a mahoosive influx of people starting their own companies. They It'll be like contracting, but with bigger upside. Mhm. Like it's a certainty. And that's just McDonald's. You think that, Burger King, Wendy's, Taco Bell, I mean, across the board? >> Mhm. You're talking what, like probably 3 and 1/2 million jobs in the um in the in the fast-food industry alone. >> Okay. Pause it. So, we lost about 2 million jobs in high-skilled manufacturing, and that made it impossible for the average worker to improve their wages. Imagine 3 and 1/2 million. Jeez. That's one industry. I'm telling you, like this This is going to hit like a asteroid. Like this is not going to be a small effect. This is uh nuclear winter for people who are not prepared. And yeah, we're We need to be ready for it. And a big way to be ready for it is one, understand the system, understand how much money they're going to print, understand that you need to own assets, uh on and on and all the things that we talk about. But if people don't treat this as an asteroid whose impact will be felt over the next 7 years, then ooh boy, you're going to get caught off guard. Mhm. It will AI with e- easily within the next 5 years, if not 3 years. So, I have I've flipped my thinking about this whole AI thing. You're either going to have a mass extinction event Mhm. or it's going to be really good with a rough patch in the middle. Because if between supercomputing power, which we're we're there already, okay? Like quantum computer. We're not a quantum computer. And deploying AI is like how is it that we don't figure out the uh commercialization of nuclear fusion within the next like 5 years? You will. These are already coming back on board. So, pause for a sec. There There was an announcement, it's in the spreadsheet. There was an announcement that we're bringing on like 15, I want to say, uh something for version four, uh something for uh nuclear reactors. Is it right there? Oh, I think you were so close. Unfortunately, that's one about nuclear war. So, there there will be two. Anyway, uh we're already bringing this on board. Yep. America is re- nuclearizing here. Uh how many of them? Three next generation. Gen four reactors. Only three. Okay, so I made up the 15 number. I apologize, I was way off. Uh but hopefully that is the beginning of something because but these are coming online by next summer. I think you're going to find the data centers that you just have to have it. And so, given that Trump is in office, given that you really are in a race against China for energy uh to power the AI, I think you're going to see more more and more of those spun up. And if we do that, a limitless source of power without any um uh carbon emission or waste at all. Like like it's like I mean it's like you know, we just save the earth basically. >> that's where everybody kind of is is that this is going to be the best thing ever or it's going to be a long long long winter. It was the best of times, it was the worst of times. That is exactly what's going to happen. Uh if you want a thing, it's going to be amazing. If you want self-respect, it's going to be a bloodbath. Ooh, what do you mean by that? >> Because people get self-respect from making progress towards something that matters to them and others and they will have no idea how to do that. That's why I'm telling you like a big part of this is going to be um building virtual worlds. People are either going to on Mars go to Mars because they want to reset the game on hard mode because things just got too easy and it's not fun anymore. Uh but that's really only for people that will have a deep understanding of why they feel the profound disease. I think people when they go into everything's too easy, everything comes to uh free, that they derail in a different way and they become mouse utopia and it's like we just turn on each other. Um so assuming that we can get through that, I think this is where people turn to virtual experiences where it's like, "Okay, cool. I want to go on the greatest adventures ever without putting my body at physical risk." And that's where I think this gets extraordinary where you're like, "Yo, I'm really invested in this thing like going on these quests." Um and just not risking your physical body. Because in a world of abundance, that risk becomes a choice. Going to Mars, there will be plenty of people that choose it. It's crazy that this is a real conversation. Uh many people will choose it, but you really are putting yourself at risk. And so my gut instinct is, "Okay, I can go live this like really isolated, really difficult, scary life on Mars, but I get a terraform a planet and be a part of that and I'll be one generation of people that make this a thing. That's going to appeal to a lot of people. Um or I can go on these insane adventures. Uh and I think a lot of people are going to choose that. Um I love when Tom gives us relationship advice cuz he's one of the one non-toxic relationships in my life. Um so I saw this and it immediately made me think of you. I was like, okay, I want to know what Tom reacts would be cuz we were traveling at the time. >> Oh god, I really hope Lisa's still in the feed because I'm going to need to say some things and people need to understand this is where people are going to be like, we got to get Lisa out of there. Uh I promise you what I'm going to say is real, but okay. All right. There's no audio. It's it's like it's Yeah, the the audio is correct. So for those of you not looking at your phones, uh there was a guy at a bar with his wife and he he is being >> she is like [ __ ] chewing into him about something. He's got his eyes like scrunched closed and his hand like pressed into his face. This is a man who's not having a good time. >> Yeah. Uh okay. Oh god, here we go. This is somebody who has never been checked. Mhm. She needs to be checked. Not physically. I am not talking physical at all. I have never once, and I mean never once uh used physical intimidation on my wife, put a hand on my wife. Bad game. Bad game. You're going to scare them and that like that's game over. Uh but for sure you need to lead. You need to make it abundantly clear that hey listen, I've upset you. I understand that and I want to parse through that, but the escalation that you're doing right now is not helpful. You need to back down, you need to get control of your emotions. At this point like you're going ham, this does not make sense. And so, if Lisa were going at me like this, I would literally admittedly I have a mode, my wife [ __ ] despises it where I don't have emotion. You are now talking to a logic center. And I do that partly to diffuse the escalatory emotions where it's like, nope, that's not going to get us where we want to go. I have registered I've triggered something. This matters. Your emotions indicate we have a problem. Cool. I accept that. I accept that I have a responsibility in this. We're going to get to that. But you need to de-escalate immediately. And then I'm going to go into cool, what's our goal? Where are we trying to get to? Where did we derail? What did I do? I'm going to listen, I'm going to articulate your position back to you. But if you're attacking me, if you're using my insecurities against me or anything like that, like that zero tolerance policy. We are going to end that uh whether it's this conversation ends until that or if I have to make this conversation only about that thing, about that as a tactic, I'm going to do that. And so, we're going to say, right now you're trying to belittle me and I don't do that. I will not be belittled in this relationship. And so, you're going to need to right now justify why as a tactic you would ever do that. What you hope to get Dude, it it is shocking. When you make people say their values out loud, what are you trying to do? Do you want me to feel small? Like when you ask that directly and the person either has to say, yes, I want you to feel small. Then it's like, okay, that is a horrible weapon to wield. Now, before we get and we will get to how grotesque that is to want me to feel small I want to understand how did we get here? What have I done? I don't want you to feel this way. The way you're feeling right now is bad. It's negative. But man, listen, I really wish Lisa were here to speak for herself so people can understand. I would expect her to do the same if I were acting emotional. Now, I think she will agree I don't do that, but this is one where you he has let this behavior get here, and we cannot play this game. Like this you do this to yourself. So, dear young man, you have let this problem metastasize. You cannot let people talk to you like that. You cannot let people treat you like that. Uh yeah, so this is a game I would not play. Oof. Uh yeah, this is bad. This is bad. >> That's misery. I don't understand why people allow themselves to get into a relationship like that. Uh so, uh I don't want to make blanket statements, but there are certainly types of people where their toxicity Remember, women are violent in a different way than men. So, men act a fool physically. Women act a fool from a relationship standpoint, and they will try to undermine you, tear you down, uh and so this is where we have to say, "Okay, just as I will never be physically intimidating to you, I'm not going to tolerate you trying to um belittle me, demean me, make me smaller. Th- That That is a as hard of a pass as I would expect you to take on me if I were physically uh aggressive to you, I will be taking to you for using female violence against me." And so, uh there is a type of person that much like Putin, they're just going to go until they hit sufficient resistance. He is not resisting. He is not meeting this challenge. He is shutting down. And so, she's just going to keep going, keep going, keep going, keep going, keep going, and she becomes that kid in Walmart who's like, "I know if I throw a fit, you'll give me what I want." And so, he buys into the most [ __ ] [ __ ] statement a human can ever buy into, which is happy wife, happy life. So, he's just trying to get back to neutral. So, he's like, "I'm going to shut down. I'm going to hibernate until she's done. And then I'm going to come back." And this is just going to keep happening. And she By the way, this works. She'll nudge him and nudge him and nudge him and nudge him and nudge him uh into where she wants him to be. And this is why people refer to it as henpecking. This is a [ __ ] catastrophe. And just like a hen can literally peck something to death, a certain type of woman who goes un rebutted uh will continue to escalate until she has metastasized into pure cancer. Um cool. All right, that's all I got. >> All right. Everybody, thank you guys so much for being here. We will be back on Friday at 6:00 a.m. Pacific per usual. Until then, my friends, be legendary. Take care. Peace. If you like this conversation, check out this episode to learn more. Trump locks in a massive trade deal with the EU that certainly puts America first. Sydney Sweeney's good genes continues to burn through the entire culture. Cory Booker blasts the Democrats for bending a knee to Trump. An 8.8 earthquake rocks