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 Ladies and gentlemen, welcome to the Solari Report. This is John Titus and Catherine Austin Fitts with Money and Markets on the Solari Report.

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 We are delighted you could join us. Boy, do we have an intense theme today. John, what's our theme?

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 Theme this week is Don't Spy on Me. That's obviously a takeoff from the historical Don't Tread on Me.

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 It refers, you can see the power pole with cameras on it, but being chopped down to the ground.

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 That's flock cameras. That's the surveillance state. People are fed up.

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 And, you know, I'm in the U.K. today, and people in the U.K. are saying to me,

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 we're watching the U.S., and we wish we could be a part of that.

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 For the U.K., there are grassroots organizations over there that are chopping those cameras down, too.

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 Yeah, and they push back hugely on the ID.

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 Yeah.

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 Right.

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 So people are fed up, and they're beginning to notice just as the invasiveness of the surveillance is getting more and more obvious.

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 Yes. It's more and more obvious. But what's not so obvious is what exactly, where flock is crossing the line.

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 I mean, they are well across any number of lines.

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 Let's get into it with our first story about flock and its cameras.

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 Flock cameras screw up, swarm an innocent man armed, an innocent man with armed police.

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 So this guy, he's an automotive journalist named Joel Fetter, was suddenly swarmed by armed cops.

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 He was test driving a Range Rover with his wife in Minnesota.

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 Officers said that they had been tracking him for days using Flock's AI integrated cameras, which had tagged his car as stolen.

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 Erroneously, as it turns out. Very erroneously, as it turns out.

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 We'll see how bad that is in a minute.

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 The cops said the license plate on Fetter's Range Rover had been reported stolen by a dealership in Los Angeles.

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 One officer presented photos taken by the cameras in the Flock app showing his SUV, plate number 3410 DTM.

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 Confirming that they had the right car, at least according to Flock.

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 But when Fetter got the company on the phone, they say it's the automaker.

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 I think it's the dealer that rented him the Range Rover.

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 They said they reported stolen not this number, 3410 DTM, but rather 3403 DTM.

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 So you see the difference is in the two middle digits.

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 On New Jersey plates, the middle number, that two-digit middle number, is written smaller than the others.

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 And for whatever reason, the number entered the Flock system.

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 It was recorded as 34 DTM.

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 So in other words, Flock just ignores the middle two digits, which includes, you can see, that would be, those numbers go from 0 to 99.

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 So that's 100 cars.

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 This apparently drove Flock's AI haywire.

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 I doubt that.

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 I think that's the wrong word.

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 I think Flock errs on the side of over-inclusiveness.

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 For Flock, this is as good as this is as good as this.

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 So as long as you fit the genus, you know, that's good enough for Flock.

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 They don't care if the species is wrong.

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 Flock just saw the 34 DTM and large type and started alerting local police.

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 Later, Fetter discovered that the car they were looking for wasn't stolen after all.

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 The license plate had been accidentally misplaced during a photo shoot.

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 So there's two mistakes here.

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 The first mistake I pointed out, Flock is over-inclusive.

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 They're like, hey, as long as we got somebody among those 100 people is guilty.

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 And that's good enough for us.

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 And it's good enough for the police.

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 But then as it turns out, even the one person they thought was guilty wasn't guilty.

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 The photo, the license had just been misplaced.

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 The car had been misplaced.

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 I went to drive and read the guy's story.

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 You know, he's a journalist for Drive.

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 And he was test driving the car for an article for Drive.

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 So if you look at this guy, he's clearly very,

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 this guy does not look like a guy who needs to steal cars for a living, right?

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 And, but he's clearly very well educated, very presentable.

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 And I read the details of how he handled the situation and he understood how dangerous it was

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 and knew exactly how to handle the situation.

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 I mean, he handled it absolutely superbly and it took, you know,

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 it took about an hour to just deescalate it all the way down to the point where

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 he could call the company and they could figure out what was going on.

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 If he hadn't handled it superbly, people could have ended up dead.

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 It's scary.

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 Right.

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 And flock.

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 So look, look at flock's got really, there's two problems.

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 There's two different problems.

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 One is the over-inclusiveness at a hundred to one.

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 So the presumption of innocence is out.

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 Flock is absolutely undermining the constitution.

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 As long as you fit the just genus, you're guilty, according to flock.

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 Right.

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 And the second problem is they give, flock is given an out when they say, well, okay,

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 well, so the car wasn't really stolen, but you got to blame the dealer for that problem.

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 The dealer told us it was stolen and we took their word for it.

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 So flock is getting, flock is breaking the law here.

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 I mean, if I'm in the state where flock did this and I'm an official, I'm like, you need

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 to fix that.

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 But next time that happens, the head of the company is going to prison.

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 Okay.

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 So let me just tell you what's going to happen, which is even worse.

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 These systems are going to be hacked by professionals.

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 And your license plate is going to be turned from being just fine to, you know, stolen car

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 or something and they can essentially set you up.

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 That's, that's, that's what that story is saying.

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 Right.

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 You could be intentionally set up and you're defenseless.

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 They've got you.

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 Right.

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 Right.

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 But they set you up and they set you up in a way that you could end up being

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 killed by the cops.

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 We're totally innocent, you know, but they're using a system that can't be trusted.

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 And that's why these things are so dangerous.

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 Right.

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 I don't, you know, having, having dealt in a situation, well, for 11 years where people

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 were constantly trying to frame me and set me up, you know, I just think all of these

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 systems are dangerous beyond imagination and very few law enforcement understand all the

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 things that could go wrong.

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 Right.

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 I think they take the company at face value and the company is fraudulent and they're

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 lying about these systems from the ghetto.

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 The systems are designed to kill you and designed to put you into prison falsely and to give the

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 executives who are in the company and out when you, when they do this.

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 Right.

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 That's, let's just go to the next story and you can see what I'm saying here.

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 It's not, it's not accidental.

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 Your garbage truck is about to start spying on you.

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 Your car already did and got fined for it.

00:07:02.891 --> 00:07:03.051
 Okay.

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 This is Cape Coral.

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 Florida is looking at a proposal.

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 So they haven't passed it yet, but they're looking at a proposal to strap AI powered cameras

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 onto its garbage trucks.

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 As those trucks roll around their normal routes, cameras would scan yards and house fronts for

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 code violations, overgrown grass, illegal dumping, peeling paint, usual blight checklists.

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 The real story though, is what happens to the data.

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 General Motors ran a, an astonishingly similar program on its own customers through OnStar.

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 GM got caught and is currently serving a five-year federal ban.

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 What happened with GM is its OnStar smart driver feature collected precise geolocation and driving

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 behavior data from customers.

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 And in some cases, every three seconds, it was pitched as a tool to help the drivers understand

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 their own habits.

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 But what GM concealed from the FTC was that it sold the data to consumer reporting agencies,

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 which packaged it into reports insurers used to raise premium or deny coverage, often without

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 the driver even knowing about it, says one consumer, you're making me pay more for my insurance

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 company.

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 That's, that's OnStar right there.

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 That's the blueprint.

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 A feature gets sold to the public as a convenience, but the data generated, the data it generates

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 turns out to be worth more.

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 That's a turnout to be worth more.

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 It was intended to be that way.

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 So they sell it to someone else for an entirely different purpose, which is known in advance.

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 By the time anyone notices, the data has already been sold and the premiums have gone

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 up.

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 Systems introduced to solve one narrow problem, like peeling paint, tend to get repurposed.

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 They tend, they're designed to get repurposed.

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 Once someone realizes, because they realize it from the get-go, that the underlying camera

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 network is useful for an entirely different purpose.

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 The product gets sold to whoever is willing to pay for it.

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 Insurers, data brokers, or police departments that never have to write a ticket.

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 Those parties know in advance what they're doing.

00:09:01.231 --> 00:09:01.751
 Right.

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 The pretense that this is some accident, it's just preposterous.

00:09:06.431 --> 00:09:08.571
 Well, but let me describe part of what's happening.

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 You have two groups.

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 One who doesn't have to obey the law, and the other that does have to obey the law.

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 The slaves and the plantation owners, to be blunt.

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 Now, whenever the fraud ultimately triggered, the vast majority of it by the misbehavior of

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 the plantation owners, the decision is, oh, we need more rules for the people who have

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 to obey the laws.

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 And then these systems go into place.

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 And when you talk to the sort of technocrats who are implementing these systems, they don't

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 have that picture.

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 They don't have a clear picture of where fraud comes from and how there's plenty of data stopped

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 most, if not all of it, if we really wanted to, right?

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 They just keep thinking, oh, let's layer on more controls of the people who have to obey

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 the law.

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 And they don't understand.

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 Essentially, they're working for the pedophiles, just trying to make everything.

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 And I'll tell you the saddest thing about Flock.

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 My feedback from legislators all over the country is the sheriff and law enforcement think this

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 is a really good thing.

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 And they want it.

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 And they're lobbying for it.

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 And they don't understand, you know, in situation after situation.

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 One of the stories we're covering today, you know, even when the sheriff has canceled it,

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 people are angry and blaming the sheriff.

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 And the last thing we need to do is have a divide and conquer between the sheriffs and

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 us.

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 Right.

00:10:37.731 --> 00:10:38.211
 Right now.

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 Right.

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 Right.

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 We've got to get the sheriffs on board.

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 Right.

00:10:42.211 --> 00:10:47.791
 But there's three basic reactions to things like Flock data cameras and there are Flock

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 cameras to collect data on people.

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 And those three reactions show up in this next story, which is interesting.

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 There's more than bargains at Grocery Outlet.

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 There's also AI facial recognition.

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 So here's Grocery Outlet.

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 That's the proper name of the store.

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 Grocery Outlet Bargain Market in California.

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 On a recent Tuesday, customers walked through the doors of the Mission District's Grocery

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 Outlet, barely glancing at the generic looking security cameras sitting on the wall to the

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 right of the store's entrance.

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 So it's very indiscreet.

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 You know, it's discreet.

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 A sign no larger than the size of a hand that read face matching software being used for

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 security and safety.

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 The system takes images of customers and runs them against a watch list, a database of people

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 who have previously been identified as causing harm in some way.

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 Who knows what that means?

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 If there is a match, a phone notification is sent to the retailer using the system.

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 If a customer's picture doesn't match a face on the watch list, said a company official,

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 it is deleted immediately.

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 It's not about mass surveillance, said the company.

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 It's about targeted deployment.

00:12:02.351 --> 00:12:06.011
 Then you get to reactions here to what happened before.

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 In 2023, the FTC banned Rite Aid from using facial recognizing technology for the next five

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 years after a system used by the chain repeatedly, repeatedly misidentified some customers as shoplifters.

00:12:21.931 --> 00:12:24.271
 So again, mistakes are always cutting in the direction.

00:12:25.211 --> 00:12:26.451
 Notice that too about these stories.

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 The mistake always cuts in the direction of a wider net, of an overbroad net.

00:12:31.071 --> 00:12:34.291
 It's never, we're accidentally letting shoplifters get there.

00:12:34.331 --> 00:12:35.911
 It's never that, ever.

00:12:36.631 --> 00:12:36.831
 Okay.

00:12:37.351 --> 00:12:38.331
 Now we get to the reactions.

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 On Tuesday, half a dozen or so shoppers at the Mission District location who spoke to

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 us had not noticed the sign.

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 Some seemed unconcerned about the facial recognition.

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 I get it, said Destiny, who had just finished a grocery run with her family.

00:12:54.631 --> 00:12:58.691
 She said she appreciated that cameras might make shopping more pleasant.

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 Others were less equivocal.

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 I'm bothered by that, said Alan Fisher.

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 And then Alice York says, I don't like that.

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 That's without my consent.

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 I'm not coming here again.

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 That's a shame.

00:13:13.171 --> 00:13:15.571
 Alice York has the correct reaction there.

00:13:15.891 --> 00:13:16.071
 Right.

00:13:17.051 --> 00:13:17.351
 Right.

00:13:17.791 --> 00:13:20.231
 So this comes down to the consumers.

00:13:21.631 --> 00:13:21.771
 Yeah.

00:13:21.771 --> 00:13:23.631
 You know, the consumers have the power.

00:13:24.091 --> 00:13:29.291
 I was just reading something I'll investigate for the equity overview about how many of the

00:13:29.291 --> 00:13:35.291
 processed food companies have, their stocks are way, way down because people are buying more

00:13:35.291 --> 00:13:35.851
 real food.

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 So, and that's the consumer giving you good feedback.

00:13:40.831 --> 00:13:41.311
 Yeah.

00:13:41.311 --> 00:13:41.451
 Right.

00:13:41.651 --> 00:13:41.951
 Right.

00:13:42.211 --> 00:13:42.531
 Right.

00:13:43.331 --> 00:13:43.651
 Right.

00:13:44.531 --> 00:13:46.751
 But these surveillance systems aren't going away.

00:13:47.411 --> 00:13:50.391
 And they've hit a chord with people.

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 People are angry about this.

00:13:51.971 --> 00:13:52.311
 Right.

00:13:52.931 --> 00:13:53.991
 They should be angry.

00:13:54.491 --> 00:13:54.751
 Yeah.

00:13:54.751 --> 00:13:57.031
 We'll see more of this in pushback.

00:13:57.291 --> 00:13:58.351
 I keep saying this to you.

00:13:58.431 --> 00:14:03.091
 I think part of the anger is not just of the invasiveness, but one of the things they know

00:14:03.091 --> 00:14:08.591
 that the people making and marketing systems are extractive in nature.

00:14:09.551 --> 00:14:11.551
 They have no concern for human rights.

00:14:11.671 --> 00:14:12.551
 They have no concern.

00:14:12.551 --> 00:14:18.471
 In other words, the general population is not the customer.

00:14:18.831 --> 00:14:19.471
 It's the prey.

00:14:21.691 --> 00:14:22.291
 Right.

00:14:22.891 --> 00:14:23.451
 Right.

00:14:24.371 --> 00:14:29.111
 I like the reactions in that story, too, because a big, huge segment of the population

00:14:29.111 --> 00:14:31.391
 reacts to all these things like, well, I don't have anything to hide.

00:14:31.911 --> 00:14:34.431
 And you saw that in one of the Mission District stories.

00:14:35.011 --> 00:14:35.731
 I like it.

00:14:35.771 --> 00:14:36.591
 It makes it more convenient.

00:14:36.731 --> 00:14:37.391
 I don't have anything to hide.

00:14:38.251 --> 00:14:46.771
 But you see in these stories with Flock and the rioting system, the people who are on

00:14:46.771 --> 00:14:51.391
 the right side of the law are misidentified as criminals or wrongdoers in some way.

00:14:51.911 --> 00:14:53.651
 And it doesn't matter that you don't have anything to hide.

00:14:53.931 --> 00:14:54.711
 The system doesn't care.

00:14:55.191 --> 00:14:57.171
 You're caught, and there's nothing you can do.

00:14:57.171 --> 00:15:02.291
 But the system can be abused in a variety of ways, and data can be sold to make money

00:15:02.291 --> 00:15:05.131
 on your identity, and you're not getting a cut.

00:15:05.771 --> 00:15:06.211
 Right.

00:15:06.211 --> 00:15:06.651
 All right.

00:15:06.891 --> 00:15:07.331
 Right.

00:15:07.331 --> 00:15:07.671
 Right.

00:15:07.831 --> 00:15:08.671
 Where's your check?

00:15:08.911 --> 00:15:10.631
 How much money do you make from these systems?

00:15:11.051 --> 00:15:11.291
 Right.

00:15:11.351 --> 00:15:12.131
 Because you're in it.

00:15:12.531 --> 00:15:12.671
 Yeah.

00:15:12.871 --> 00:15:13.071
 Right.

00:15:13.471 --> 00:15:17.651
 Somebody's making money by extracting your identity without your permission.

00:15:17.651 --> 00:15:21.171
 And they're doing so at a cost of, they're going to be wrong.

00:15:21.271 --> 00:15:26.031
 These systems are set up to be over-inclusive and make the dragnet too broad.

00:15:26.511 --> 00:15:27.651
 But they're going to be hacked, too.

00:15:30.171 --> 00:15:33.171
 Do you know how much fun you can have after these systems?

00:15:33.831 --> 00:15:34.011
 Who?

00:15:34.251 --> 00:15:39.231
 I mean, at this point, given the tenor of these stories, I would actually welcome a hacker.

00:15:41.231 --> 00:15:41.831
 It's coming.

00:15:41.831 --> 00:15:44.471
 Riddle me this.

00:15:44.631 --> 00:15:47.751
 How does a hacker make what we just saw with the Flock system any worse?

00:15:49.151 --> 00:15:55.951
 By taking all the journalists in the country who are writing about the control grid and reporting

00:15:55.951 --> 00:15:57.351
 their license plates as stolen.

00:15:58.031 --> 00:15:59.111
 That's the system now.

00:15:59.611 --> 00:16:00.331
 They're doing that now.

00:16:00.351 --> 00:16:02.551
 Why would a hacker have any financial motive to do that?

00:16:02.931 --> 00:16:05.211
 That's not a financially motivated hacker.

00:16:05.411 --> 00:16:08.731
 That's the powers that be who want to suppress information.

00:16:09.031 --> 00:16:10.711
 That's built into the system right now.

00:16:11.031 --> 00:16:11.211
 Right.

00:16:11.211 --> 00:16:12.531
 There's no hacker involved there.

00:16:12.611 --> 00:16:13.731
 That's the system now.

00:16:14.151 --> 00:16:14.931
 I agree.

00:16:15.211 --> 00:16:15.751
 I agree.

00:16:16.031 --> 00:16:24.011
 It's designed to create harassment tools.

00:16:24.691 --> 00:16:24.851
 Yeah.

00:16:25.511 --> 00:16:26.651
 That's what it is.

00:16:26.911 --> 00:16:27.131
 Right.

00:16:27.831 --> 00:16:28.711
 It's a harassment tool.

00:16:28.731 --> 00:16:31.631
 I wonder if that reporter from Drive had written something somebody didn't like.

00:16:33.951 --> 00:16:35.331
 That'd be a great question.

00:16:36.051 --> 00:16:36.391
 Right.

00:16:36.611 --> 00:16:39.711
 The odds are probably good that he had.

00:16:39.711 --> 00:16:40.051
 I don't know.

00:16:40.591 --> 00:16:44.571
 Odds are decent he's got a Twitter account that said something across the line.

00:16:44.911 --> 00:16:52.551
 But if you think the people who assassinated almost 300 journalists in Palestine wouldn't do that.

00:16:54.051 --> 00:16:59.391
 It is odd that 3410 HTM, whatever that license plate was, wasn't really stolen.

00:17:00.271 --> 00:17:01.471
 And that was used as a pretext.

00:17:01.571 --> 00:17:06.151
 In other words, the pretext used to get that journalist turned out itself to be false.

00:17:07.911 --> 00:17:08.291
 Right.

00:17:08.831 --> 00:17:12.271
 You're telling me, you know, I'm not so sure.

00:17:12.271 --> 00:17:13.351
 I'm not so sure either.

00:17:13.351 --> 00:17:15.591
 You know, I'm not sure.

00:17:15.851 --> 00:17:30.931
 I mean, given what I saw, the trick in our litigation, especially with the physical harassment, was you had to presume that the other guy was simply misinformed.

00:17:31.151 --> 00:17:42.611
 And you had to work with them as if they were a wonderful, an excellent person, and you just had to take the abuse for as long as it took to finally reach them.

00:17:42.791 --> 00:17:50.811
 And what was amazing, I'll never forget, at the end of when they seized our offices, when it was all over, the lead FBI IT guy came.

00:17:50.931 --> 00:17:55.771
 I told you, he gave me his card and he said, I don't really know what's going on here, but I know you're not the criminal.

00:17:55.991 --> 00:17:58.791
 So, he said, I would, he said, this is my card.

00:17:58.911 --> 00:18:01.831
 I would love, when you start your next company, I would love to work for you.

00:18:01.951 --> 00:18:03.091
 These systems are beautiful.

00:18:03.491 --> 00:18:04.631
 So, here's my card.

00:18:04.851 --> 00:18:06.371
 So, you know.

00:18:06.451 --> 00:18:06.691
 Wow.

00:18:06.971 --> 00:18:07.231
 Yeah.

00:18:07.591 --> 00:18:08.951
 I would be a really good employee.

00:18:09.091 --> 00:18:09.831
 You want to hire a major.

00:18:12.571 --> 00:18:17.831
 But, you know, from the beginning, you know, that took a week to get him to the point where he trusted us.

00:18:18.331 --> 00:18:18.631
 Right.

00:18:19.071 --> 00:18:19.311
 Right.

00:18:20.231 --> 00:18:21.571
 At first blush, you're right.

00:18:22.231 --> 00:18:24.451
 They're going to give, you're going to get the benefit of the doubt.

00:18:24.451 --> 00:18:26.731
 And the criminals who run these systems know that.

00:18:27.211 --> 00:18:28.291
 They're counting on that.

00:18:28.791 --> 00:18:28.911
 Right.

00:18:29.211 --> 00:18:32.151
 But they're counting, that's why spiritual warfare training really helps.

00:18:32.711 --> 00:18:37.191
 Because they're counting on you to get your back up or get scared or get offended or whatever,

00:18:37.351 --> 00:18:42.611
 as opposed to just knowing how to do it straight with somebody in law enforcement.

00:18:43.051 --> 00:18:43.191
 Yeah.

00:18:43.311 --> 00:18:46.891
 But you can, beware when the presumption of good faith wears out.

00:18:46.991 --> 00:18:48.591
 We're going to come up on a story about that.

00:18:48.631 --> 00:18:48.851
 Right.

00:18:49.191 --> 00:18:49.351
 Right.

00:18:49.371 --> 00:18:50.011
 In a little bit.

00:18:51.211 --> 00:18:51.431
 Right.

00:18:51.431 --> 00:18:53.771
 Well, we also had our lawyers, you know.

00:18:54.091 --> 00:18:57.791
 Yeah, it's an adversarial system, so you've got a little more protection.

00:18:58.751 --> 00:18:58.851
 Right.

00:18:58.851 --> 00:19:02.411
 But dealing with the cops is not an, they're supposed to be representing the public.

00:19:02.711 --> 00:19:03.111
 They're not.

00:19:03.191 --> 00:19:04.211
 They're representing billionaires.

00:19:04.471 --> 00:19:05.171
 Understand that.

00:19:06.251 --> 00:19:06.831
 Yeah, but understand.

00:19:06.831 --> 00:19:10.211
 When they're using flock systems, they are representing the billionaire class.

00:19:10.431 --> 00:19:10.571
 Right.

00:19:10.571 --> 00:19:12.311
 They're representing the Epstein empire.

00:19:12.791 --> 00:19:13.031
 Right.

00:19:13.431 --> 00:19:15.411
 And understand there are two kinds of beliefmen.

00:19:15.751 --> 00:19:21.131
 One who know that and are fine with it, and ones who don't know that and think you're really a criminal.

00:19:21.771 --> 00:19:22.571
 And they're both dangerous.

00:19:23.051 --> 00:19:23.371
 Yes.

00:19:23.571 --> 00:19:24.511
 They're both very dangerous.

00:19:24.731 --> 00:19:25.351
 Very dangerous.

00:19:25.831 --> 00:19:26.051
 Right.

00:19:26.351 --> 00:19:28.491
 Let's turn to Iran and the war.

00:19:28.611 --> 00:19:29.471
 It's flared back up.

00:19:29.911 --> 00:19:34.151
 We'll ease into it with the domestic issue, and that is the oil supply.

00:19:35.231 --> 00:19:39.271
 Frequent oil draws from U.S. Strategic Reserve push old system to breaking point.

00:19:39.411 --> 00:19:40.771
 We warned about this.

00:19:41.351 --> 00:19:45.691
 The U.S. is tapping into its national stocks of crude with abandon.

00:19:46.651 --> 00:19:48.111
 That's not totally true.

00:19:48.211 --> 00:19:49.431
 It's not worthwhile.

00:19:49.631 --> 00:19:51.371
 They're drawn on it.

00:19:51.831 --> 00:19:54.651
 The withdrawals are taking a toll on the Strategic Reserve System.

00:19:54.811 --> 00:20:03.611
 Just in the past four years, the Biden and Trump administrations alike have ordered a total of 352 million barrels from the reserve,

00:20:03.731 --> 00:20:05.491
 or nearly half the capacity of the stocks.

00:20:06.351 --> 00:20:13.411
 Now, today, frequent drawdowns, wear and tear, and lack of investments are straining the reserve, according to experts.

00:20:14.371 --> 00:20:15.071
 This is curious.

00:20:15.071 --> 00:20:26.271
 The 60 Gulf Coast salt caverns that make up the stocks, so there's 60 caverns, can't be drawn from or refilled at the rate they were designed for them.

00:20:26.731 --> 00:20:31.891
 At one point, a well broke and caused the loss of hundreds of thousands of barrels of crude.

00:20:32.011 --> 00:20:34.651
 So this is what starts to happen when the system gets old.

00:20:34.731 --> 00:20:36.711
 Wells break, things cave in.

00:20:37.311 --> 00:20:37.871
 Not good.

00:20:37.871 --> 00:20:44.611
 Analysts say the U.S. ability to weather oil disruptions doesn't hinge on the caverns as much as it used to.

00:20:45.291 --> 00:20:48.591
 That's due in part to the shale boom in the U.S.

00:20:48.591 --> 00:20:53.391
 American drillers are on track this year to produce some 14 million barrels of oil a day.

00:20:53.391 --> 00:21:02.311
 That's also due to China drawing on its oil reserves rather than in the open market.

00:21:03.091 --> 00:21:06.231
 So the brakes have been pumped on the drawdowns of the reserves.

00:21:07.191 --> 00:21:12.531
 The deterioration limits how much crude can be pumped out, pumped into and out of the caverns.

00:21:12.591 --> 00:21:20.991
 As of December, the Department of Energy estimated 2.7 million barrels of oil a day could be drawn out.

00:21:21.291 --> 00:21:24.951
 But the system was designed for 4.4 million barrels a day.

00:21:25.071 --> 00:21:27.111
 2.7 million barrels a day.

00:21:29.011 --> 00:21:32.231
 That's 18, 19 million barrels a week.

00:21:32.451 --> 00:21:39.731
 And I'll tell you, in May there was a week where the U.S. drew out 9.9 million barrels, which is over half of the limit.

00:21:40.431 --> 00:21:40.831
 Right.

00:21:42.471 --> 00:21:43.371
 So we're getting there.

00:21:43.911 --> 00:21:46.611
 We're down to the, we're scraping the bottom here.

00:21:47.971 --> 00:21:50.151
 The statutory, let me look at this.

00:21:50.231 --> 00:21:56.051
 The statutory minimum for the strategic oil reserves is 150 million barrels.

00:21:56.191 --> 00:21:58.631
 And right now we're sitting at about 325.

00:21:59.531 --> 00:21:59.911
 Right.

00:22:00.011 --> 00:22:05.371
 But if we, if we drop much lower, don't we really start to jeopardize the infrastructure?

00:22:06.571 --> 00:22:07.311
 I thought.

00:22:07.831 --> 00:22:11.131
 That's, that's, that's where I'm not getting total clarity.

00:22:11.631 --> 00:22:12.071
 Right.

00:22:12.191 --> 00:22:16.751
 And I said, or a few weeks back, I said, I don't, these estimates of four weeks are, they're not right.

00:22:17.351 --> 00:22:20.271
 I still stand by, it's roughly election day is when.

00:22:21.751 --> 00:22:25.271
 But who knows, you can't predict a salt cavern cave-in.

00:22:25.751 --> 00:22:26.171
 Right.

00:22:26.791 --> 00:22:27.091
 Right.

00:22:27.971 --> 00:22:36.451
 Because once that, once one caves in, you're going to be a little less, you're going to be a little reluctant to dip your toe right back in the water.

00:22:37.231 --> 00:22:37.471
 Right.

00:22:37.531 --> 00:22:46.711
 But if you look at our weapons and missile stockpiles, and you look at our oil stockpiles, we're getting weaker and weaker and weaker.

00:22:47.251 --> 00:22:50.251
 And you look at this and you think, what's the plan?

00:22:53.111 --> 00:22:53.591
 Yeah.

00:22:54.011 --> 00:23:01.771
 So there, there's that, is there a plan for what happens when you can no longer paper over this crisis?

00:23:02.631 --> 00:23:06.971
 When did you, I mean, you can manipulate the stock price and the oil price all day long.

00:23:06.971 --> 00:23:10.351
 I'm sure the New York Fed is, we're in a way of doing that.

00:23:10.871 --> 00:23:11.071
 Right.

00:23:11.071 --> 00:23:16.531
 But what the New York Fed can't do, there's no amount of electrons in the world that can print oil.

00:23:17.151 --> 00:23:17.511
 Right.

00:23:18.231 --> 00:23:19.291
 What do you do when you're out?

00:23:20.331 --> 00:23:21.031
 That's one limit.

00:23:21.111 --> 00:23:24.871
 The other limit is, what does the U.S. do with, now that the war's fired back up?

00:23:25.291 --> 00:23:28.391
 What happens when we run out of ordnance and munitions?

00:23:28.911 --> 00:23:29.671
 Right, exactly.

00:23:31.391 --> 00:23:35.291
 Right, and what happens when you run out of ordnance and oil at the same time?

00:23:36.411 --> 00:23:40.151
 Not, not likely, but we're running up against both.

00:23:40.611 --> 00:23:41.431
 Right, exactly.

00:23:41.531 --> 00:23:46.091
 But the question with, when you run out of munitions and ordnance, you run out of firepower.

00:23:47.191 --> 00:23:48.311
 Do you use nukes?

00:23:49.071 --> 00:23:56.431
 Do you, even more likely in my mind, do you try to create a nuclear meltdown over there by bombing their nuclear facilities?

00:23:56.431 --> 00:23:58.631
 I have no idea.

00:23:59.591 --> 00:23:59.891
 I don't.

00:24:01.731 --> 00:24:03.371
 So here's what I do know.

00:24:03.891 --> 00:24:08.871
 The president may not be, have a plan, but the guys running things always have a plan.

00:24:11.551 --> 00:24:13.391
 And that's the question, what is it?

00:24:14.231 --> 00:24:15.691
 Right, right.

00:24:16.691 --> 00:24:23.151
 Let's keep it going with Iran, which is sort of a background report to get us up to basically as of yesterday.

00:24:23.271 --> 00:24:24.711
 This is from Simplicious.

00:24:25.211 --> 00:24:26.411
 I'll try to make it quick.

00:24:26.411 --> 00:24:31.191
 Empire thuds Iran against, again, amidst symbols of calamity.

00:24:32.091 --> 00:24:45.091
 Trump has bled off a new cycle of aimless bombings after his patients ran dry, and the U.S. is now trapped in this doom loop of impotence, striking the same insignificant coastal launch sites over and over and over again.

00:24:45.951 --> 00:24:53.951
 He hit a breaking point, Trump, over Iran's refusal to give him and the U.S. the satisfaction of announcing our Humu's reopening.

00:24:54.871 --> 00:24:55.811
 So it's flared up again.

00:24:55.891 --> 00:25:01.751
 Trump has been desperately wheedling the media with attempts to portray the strait as open.

00:25:02.511 --> 00:25:03.691
 Everybody knows it's not open.

00:25:03.851 --> 00:25:08.271
 CENTCOM tried its honest best to give authority to Trump's claims to no avail.

00:25:08.391 --> 00:25:13.271
 The entire world could see that ships only passed the strait when they were allowed to do so by Iran.

00:25:14.591 --> 00:25:16.471
 Here's a map, just one of thousands.

00:25:16.791 --> 00:25:24.911
 Only one tanker confirmed to have transited today via the Iran-designated corridor, and it's a Chinese vessel.

00:25:25.051 --> 00:25:25.951
 Everything else is red.

00:25:26.011 --> 00:25:26.431
 You're stopped.

00:25:26.591 --> 00:25:27.131
 You're not going anywhere.

00:25:27.591 --> 00:25:34.051
 When asked by multiple news figures why the strait remains closed, Trump didn't even try to lie about it.

00:25:34.131 --> 00:25:35.551
 He just dodged the question outright.

00:25:35.711 --> 00:25:37.511
 He's like, we need to move on to another topic.

00:25:37.511 --> 00:25:52.071
 The conflict is now essentially regressed into a low-intensity political ping-pong of sorts, with each side merely attacking the other, not to inflict any kind of military defeat, which at this point is impossible, but rather for internal public consumption.

00:25:52.911 --> 00:26:12.291
 Okay, so what just happened was the Senate shot down the NDAA, which the SAFE Act had been rolled into it again, and it had the provision 219 to merge the Israeli or integrate the Israeli military into the Pentagon.

00:26:12.791 --> 00:26:13.171
 Right.

00:26:13.171 --> 00:26:25.831
 Just a new announcement from, I think, AIPAC had spent $850,000 lobbying Congress and the Pentagon on this issue.

00:26:26.271 --> 00:26:27.391
 How much did they spend?

00:26:27.891 --> 00:26:31.011
 $850,000 just lobbying on this issue.

00:26:31.011 --> 00:26:33.771
 It's amazing how cheap these congressmen are to buy.

00:26:34.891 --> 00:26:35.591
 It is.

00:26:35.771 --> 00:26:36.231
 It is.

00:26:36.591 --> 00:26:46.911
 Now, remember, you're talking about a whole series of people who probably have dual-citizen passports, and you have no idea what's going on unreported through that vehicle.

00:26:47.051 --> 00:26:47.831
 We just don't know.

00:26:48.591 --> 00:26:49.711
 But here's what happened.

00:26:49.771 --> 00:26:50.471
 It was defeated.

00:26:51.211 --> 00:26:57.051
 All the Republicans voted for and all the Democrats voted against, and so the Democrats shut it down.

00:26:57.051 --> 00:27:01.251
 Now, Thune changed his vote just on a procedural matter so they could bring it back.

00:27:02.151 --> 00:27:05.811
 But anyway, so 100% Democrats said no.

00:27:06.291 --> 00:27:07.611
 The Republicans said yes.

00:27:08.791 --> 00:27:09.631
 I mean, can you imagine?

00:27:10.051 --> 00:27:15.111
 You have an entire Republican Senate voting to destroy the country's sovereignty.

00:27:16.131 --> 00:27:16.411
 Right.

00:27:17.171 --> 00:27:17.431
 Right.

00:27:17.531 --> 00:27:25.231
 They're destroying the country's sovereignty, but later on we'll see a story where sovereignty doesn't mean—they don't use the term sovereignty the way you and I use it.

00:27:25.471 --> 00:27:26.231
 Right, exactly.

00:27:26.231 --> 00:27:27.191
 We understand what it means.

00:27:27.311 --> 00:27:28.991
 They have a different understanding.

00:27:29.411 --> 00:27:31.551
 Well, I would describe what they voted for as treason.

00:27:33.111 --> 00:27:33.671
 That's mine.

00:27:33.971 --> 00:27:37.251
 Insofar as the merger with Israel goes, I completely agree.

00:27:37.451 --> 00:27:37.531
 Yeah.

00:27:37.591 --> 00:27:38.231
 That's treason.

00:27:38.711 --> 00:27:39.071
 Absolutely.

00:27:39.071 --> 00:27:46.031
 And especially because the Department of Defense is not subject to the financial management laws of the country.

00:27:47.071 --> 00:27:54.671
 So imagine the financial vein that Israel has tapped into through DOD up until now, but what they could do after that.

00:27:55.071 --> 00:27:55.291
 Right.

00:27:55.351 --> 00:27:57.691
 You're turning over the reins of your military to a foreign country.

00:27:58.111 --> 00:28:00.391
 That's a hanging defense.

00:28:00.391 --> 00:28:03.871
 You're putting a huge straw into the Treasury of the United States.

00:28:04.311 --> 00:28:04.591
 Right.

00:28:05.191 --> 00:28:05.431
 Right.

00:28:06.711 --> 00:28:07.991
 So where is this getting us?

00:28:08.171 --> 00:28:11.131
 Let's catch up on developments over in the Middle East.

00:28:12.031 --> 00:28:14.051
 It's no longer just about the Strait of Hormuz.

00:28:14.151 --> 00:28:19.771
 As we projected on this show, it was going to expand to Yemen and the Red Sea, and it's happened.

00:28:19.971 --> 00:28:20.691
 It's happened.

00:28:21.231 --> 00:28:22.131
 Here we go.

00:28:22.791 --> 00:28:25.331
 This is an announcement from the Houthis.

00:28:26.111 --> 00:28:36.211
 In response to this criminal Saudi aggression, the Yemeni armed forces carried out a military operation targeting Aba International Airport with a number of ballistic missiles and drones.

00:28:36.331 --> 00:28:40.131
 The operation successfully achieved its objectives thanks to Allah.

00:28:40.211 --> 00:28:57.231
 The Saudi enemy, by its reckless decision to launch the unjust attack on basically our airport, bears full responsibility for the grave consequences of this brutal aggression, which serves a Zionist American enemy and all the resulting repercussions.

00:28:57.991 --> 00:29:14.751
 So basically what happens is Iran tries to fly—well, we'll see that in a minute—Iran flies a plane to Yemen, gets close enough to Saudi air base that Saudi Arabia bombs the Arab landing strip in Yemen, and Yemen's not having any of it.

00:29:15.411 --> 00:29:22.651
 So later on in that tweet, he says, you know, he basically warns everybody, don't fly over Saudi airspace.

00:29:23.331 --> 00:29:24.251
 That's next.

00:29:24.571 --> 00:29:25.011
 Right.

00:29:25.331 --> 00:29:25.551
 Okay.

00:29:25.771 --> 00:29:26.071
 Go ahead.

00:29:26.151 --> 00:29:26.751
 Here you go.

00:29:27.791 --> 00:29:32.231
 The Houthis have published a statement warning airlines against operating in Saudi Arabian airspace.

00:29:33.451 --> 00:29:34.731
 So here it is.

00:29:34.851 --> 00:29:35.971
 We warn all airlines.

00:29:36.211 --> 00:29:36.771
 There you go.

00:29:37.691 --> 00:29:40.571
 Saudi Arabia, you know, little Yemen's over here.

00:29:40.691 --> 00:29:42.411
 Saudi Arabia, the whole country's off limits.

00:29:42.471 --> 00:29:43.511
 Don't even try to fly over.

00:29:43.691 --> 00:29:48.971
 So the war, the Iranian war is blowing up into World War III in front of our eyes.

00:29:49.751 --> 00:29:49.831
 Right.

00:29:54.091 --> 00:29:56.671
 There's, you know, Trump has no pathway now.

00:29:57.591 --> 00:30:07.391
 So the Russians, you know, the only way to get out, you have two choices.

00:30:07.531 --> 00:30:10.291
 You can win militarily, right?

00:30:10.711 --> 00:30:12.071
 Or you can negotiate.

00:30:12.071 --> 00:30:22.071
 And once deals have busted this often, it's very hard to get people back to the negotiating table, particularly after what happened at the funeral.

00:30:23.331 --> 00:30:24.271
 So, right.

00:30:24.751 --> 00:30:27.511
 And explain why the funeral is important.

00:30:27.771 --> 00:30:36.611
 The funeral is important because you had so many countries represented there in expressing solidarity.

00:30:37.031 --> 00:30:45.611
 They were not afraid to go to the funeral, you know, despite the U.S. pressure to not, you know, kiss the ring.

00:30:46.391 --> 00:30:46.531
 Right.

00:30:46.531 --> 00:30:56.231
 So when you have that many countries kissing the ring in a situation like this, it is a very quiet way of saying to the United States,

00:30:56.331 --> 00:30:58.331
 we don't agree with what we don't agree with what you're doing.

00:30:59.331 --> 00:30:59.771
 Yeah.

00:31:00.291 --> 00:31:00.491
 Right.

00:31:00.491 --> 00:31:09.251
 But it's also what I saw in the funeral in Iran for all the assassinated officials was it's got wild popular support.

00:31:09.331 --> 00:31:15.431
 The whole, one of the main objectives of the Trump administration in this war in Iran was, well, we'll break them economically.

00:31:15.591 --> 00:31:16.831
 We'll break the will of the people.

00:31:17.831 --> 00:31:21.751
 And that has the population of Iran is around 95 million.

00:31:22.391 --> 00:31:22.511
 Right.

00:31:22.511 --> 00:31:24.991
 About 15 million people turned out on the streets for that funeral.

00:31:25.111 --> 00:31:26.011
 One in six.

00:31:26.831 --> 00:31:27.231
 That's amazing.

00:31:27.231 --> 00:31:28.231
 You think you're breaking their will?

00:31:28.591 --> 00:31:32.511
 These people are, they're fighting mad now.

00:31:33.031 --> 00:31:33.311
 Right.

00:31:33.771 --> 00:31:35.691
 So you can, that plan is not going to work.

00:31:35.751 --> 00:31:36.271
 What else you got?

00:31:36.331 --> 00:31:36.471
 Right.

00:31:36.571 --> 00:31:38.871
 You've, you've managed to unify them in a unique way.

00:31:38.871 --> 00:31:40.131
 Yeah, you've, congratulations.

00:31:40.631 --> 00:31:41.291
 Yeah, because I mean, I.

00:31:41.291 --> 00:31:42.451
 They're angrier than ever.

00:31:43.071 --> 00:31:44.631
 I've met a lot of Iranians.

00:31:44.771 --> 00:31:46.251
 They're not in love with their government.

00:31:46.611 --> 00:31:46.911
 Right.

00:31:47.851 --> 00:31:48.251
 Right.

00:31:48.971 --> 00:31:49.211
 Right.

00:31:49.211 --> 00:31:53.271
 But they'll take their government over the U.S. and Israel any old day of the week.

00:31:53.411 --> 00:31:53.511
 Yes.

00:31:53.931 --> 00:31:54.151
 Yes.

00:31:54.651 --> 00:31:55.011
 Yeah.

00:31:55.371 --> 00:31:58.491
 And they'll show out in droves and support, put their own lives at risk doing it.

00:31:59.451 --> 00:32:00.931
 So that's not going to work.

00:32:01.031 --> 00:32:02.511
 So that pathway is closed.

00:32:02.811 --> 00:32:03.071
 Okay.

00:32:03.191 --> 00:32:04.051
 We're done with that.

00:32:04.051 --> 00:32:04.251
 I don't know if you saw it.

00:32:04.751 --> 00:32:06.111
 You remember Rahm Emanuel.

00:32:06.931 --> 00:32:08.071
 Yeah, of course I do.

00:32:08.131 --> 00:32:08.791
 I was in Chicago.

00:32:09.151 --> 00:32:09.911
 You were in Chicago.

00:32:10.511 --> 00:32:14.691
 He gave a speech the other day in Israel saying, you know, you've lost the world's support.

00:32:15.831 --> 00:32:17.751
 He was talking about what you do next.

00:32:17.851 --> 00:32:20.411
 He's basically saying, you've lost the world's support.

00:32:20.611 --> 00:32:21.891
 The world does not support you.

00:32:23.031 --> 00:32:23.211
 Yeah.

00:32:23.451 --> 00:32:25.431
 He basically said, you're a pariah.

00:32:25.631 --> 00:32:27.591
 Now, he's a big Israel supporter.

00:32:27.791 --> 00:32:28.271
 So that was.

00:32:28.411 --> 00:32:28.831
 I know.

00:32:28.831 --> 00:32:29.711
 He's huge.

00:32:29.711 --> 00:32:32.951
 He's one of the most glaring Zionists on earth.

00:32:33.091 --> 00:32:34.631
 I'm shocked that he gave a speech like that.

00:32:34.671 --> 00:32:37.011
 And so he's telling them they've become a pariah.

00:32:37.171 --> 00:32:39.311
 That's pretty interesting to me.

00:32:40.191 --> 00:32:43.411
 That is interesting because he's a connected guy, you know.

00:32:44.611 --> 00:32:50.731
 He ran for mayor in Chicago and won in Chicago in 2000 and, I think it was early 2011.

00:32:53.731 --> 00:32:56.311
 Yeah, January 2011, he ran.

00:32:56.391 --> 00:32:58.871
 Anyway, let's move on.

00:32:58.891 --> 00:33:00.071
 Let's move on to Lindsey Graham.

00:33:01.151 --> 00:33:08.391
 It's not news that Lindsey Graham died, but there's some speculation about what killed him.

00:33:09.251 --> 00:33:10.471
 This is just a tweet.

00:33:10.731 --> 00:33:12.991
 It's an interesting timeline for Lindsey Graham.

00:33:14.131 --> 00:33:16.951
 In 48 hours, he visited Ukraine drone factory.

00:33:18.051 --> 00:33:20.571
 Then Russia struck the drone factory.

00:33:20.891 --> 00:33:23.311
 And then right after that, Graham died suddenly.

00:33:24.431 --> 00:33:29.011
 Could, as claimed, be a sudden heart attack right after returning home.

00:33:29.011 --> 00:33:36.851
 But it could be that he was struck in a drone factory in Russia.

00:33:37.551 --> 00:33:39.671
 So here he is, he's touring a drone factory in Russia.

00:33:40.151 --> 00:33:41.531
 And then within hours later, he's dead.

00:33:41.671 --> 00:33:42.731
 He looked pretty healthy to me.

00:33:43.291 --> 00:33:47.751
 So if you look at the story, to me, just as a political observer,

00:33:48.591 --> 00:33:53.551
 the first thing I said when I saw the story, who assassinated Lindsey Graham?

00:33:54.031 --> 00:33:56.331
 That was the first thought that came into my mind.

00:33:56.491 --> 00:33:56.631
 Yeah.

00:33:56.831 --> 00:34:01.691
 So the chances that this was not a natural death are reasonable, right?

00:34:01.971 --> 00:34:04.331
 And there's no way to know without spending any time.

00:34:04.331 --> 00:34:04.911
 They are reasonable.

00:34:04.911 --> 00:34:10.811
 And I want to add a point to that timeline with this next story.

00:34:11.051 --> 00:34:16.771
 I had this in Ukraine, but it's on point, the timing.

00:34:17.111 --> 00:34:21.111
 Russia no longer trusts the West's declared readiness to negotiate, says Lavrov.

00:34:24.211 --> 00:34:25.531
 The timing is so interesting.

00:34:25.611 --> 00:34:30.011
 Russia no longer has any trust in the West's willingness to reach the negotiated solution on Ukraine.

00:34:30.011 --> 00:34:37.911
 Russian Foreign Minister Lavrov said at a news conference on July 9th, which is two days before Lindsey Graham died.

00:34:37.911 --> 00:34:41.871
 The West continues to make hypocritical calls for a negotiated solution.

00:34:42.571 --> 00:34:47.711
 Negotiated solutions were reached in 2014, 15, and 19, he said.

00:34:48.111 --> 00:34:52.151
 In all these cases, the West's guarantees were dismantled by the West itself.

00:34:52.251 --> 00:34:54.931
 They all proved to be total lies.

00:34:54.931 --> 00:35:02.931
 Besides, there was a negotiated solution between Russia and Ukraine in 2022, but the West undermined that openly and publicly.

00:35:03.111 --> 00:35:08.831
 We no longer trust the West's declared willingness to find a negotiated solution.

00:35:10.071 --> 00:35:10.931
 Look at what he says here.

00:35:10.931 --> 00:35:16.531
 This reserve of good faith and hope has run completely dry.

00:35:16.891 --> 00:35:20.231
 So good faith and hope are now out the window, he says.

00:35:21.211 --> 00:35:23.691
 He's about three years too late, isn't he, on that?

00:35:24.771 --> 00:35:27.711
 He finally says, we've had enough.

00:35:28.271 --> 00:35:29.831
 And two days later, Graham is dead.

00:35:29.831 --> 00:35:33.271
 One of the biggest opponents to Russia is dead.

00:35:33.751 --> 00:35:37.771
 Two years after Lavrov, long overdue, says we finally run out of patience.

00:35:38.471 --> 00:35:40.691
 Right, but here's the interesting thing.

00:35:41.651 --> 00:35:54.831
 The big, one of the big developments in warfare over the last two years has been the where's daddy, you know, where's daddy system that targets and assassinates leaders.

00:35:55.531 --> 00:36:02.511
 And the United States and Israel have made it very clear that we reserve the right to target and assassinate leaders.

00:36:02.651 --> 00:36:04.151
 And we know that drones have been.

00:36:04.491 --> 00:36:07.171
 Including while we're negotiating with this.

00:36:07.691 --> 00:36:07.971
 Right.

00:36:08.471 --> 00:36:08.971
 Right.

00:36:09.271 --> 00:36:13.811
 And we know that drones have been in, you know, we've seen attacks on Putin's car.

00:36:14.271 --> 00:36:15.851
 We've seen drone attacks in Moscow.

00:36:15.851 --> 00:36:19.651
 There's been rumors of attacks, you know, efforts to assassinate Putin.

00:36:19.651 --> 00:36:28.131
 And if you look at the, you know, what the other side has done, they have been very reserved in their pushback on this.

00:36:28.471 --> 00:36:32.771
 Because if you look at how many leaders we've killed, it's an extraordinary number.

00:36:33.191 --> 00:36:35.311
 I mean, it started actually with our own president.

00:36:35.311 --> 00:36:37.151
 We kill our own too.

00:36:37.151 --> 00:36:43.231
 But, you know, they have been remarkably careful on this point.

00:36:44.371 --> 00:36:55.431
 If this is, you know, if Graham was assassinated by the Russians or the Ukrainian, you know, somebody on the other side, it wouldn't surprise me.

00:36:55.431 --> 00:37:00.011
 Because this is an escalation of we target and kill individual leaders.

00:37:00.771 --> 00:37:04.331
 And that's, that's, that's, that's the new war game.

00:37:04.951 --> 00:37:05.111
 Right.

00:37:05.271 --> 00:37:14.831
 And I think it boils down to me, and there's obviously speculation, but this looks like Russia's saying, you know what, two can play at that game, pal.

00:37:15.651 --> 00:37:16.711
 You sure you want to go there?

00:37:17.151 --> 00:37:18.311
 Because we can get you too.

00:37:20.011 --> 00:37:23.771
 I mean, two days after Lavrov says good faith has run dry, there's no more hope.

00:37:24.391 --> 00:37:28.671
 It is big, one of the biggest enemies of the Russia in the U.S. is dead.

00:37:29.391 --> 00:37:31.471
 And he died in a, he was in a drone factory.

00:37:31.471 --> 00:37:35.611
 He was in a drone factory where drones are being manufactured to bomb Russian infrastructure.

00:37:37.491 --> 00:37:43.851
 The poetic symmetry there is almost, it's almost in your face.

00:37:44.931 --> 00:37:53.531
 So, I think, I think what we're saying is the gloves are getting taken off, but that's just started.

00:37:54.191 --> 00:37:58.691
 So, let me make a point that, was it Simplicious or one of the stories made?

00:37:58.691 --> 00:38:05.871
 The strikes we just made, you know, so, the president says the OU is over, the negotiation's over.

00:38:06.251 --> 00:38:10.551
 His big point is the Iranians switch hit, you can't trust them, they won't keep their deals.

00:38:11.491 --> 00:38:17.571
 So, he's, you know, major protective identification, he's accusing them of what he's been doing, right?

00:38:17.991 --> 00:38:23.471
 Because they show up and negotiate and we kill their leaders, you know, right in the middle of the negotiation, okay?

00:38:23.651 --> 00:38:23.831
 Right.

00:38:24.291 --> 00:38:28.691
 So, following Israel's example, by the way, Israel kicked this party off.

00:38:29.311 --> 00:38:29.451
 Right.

00:38:29.931 --> 00:38:35.871
 But if you look at the missile strikes he's been doing, he's not striking any critical facilities.

00:38:36.631 --> 00:38:38.031
 It's almost like theater.

00:38:38.211 --> 00:38:39.051
 It's not real.

00:38:40.191 --> 00:38:40.371
 Right?

00:38:40.571 --> 00:38:40.731
 You're right.

00:38:40.971 --> 00:38:42.571
 That's such a great point.

00:38:42.751 --> 00:38:42.991
 Right.

00:38:43.471 --> 00:38:45.731
 That Lindsey Graham didn't, he didn't die in a restaurant.

00:38:47.051 --> 00:38:49.151
 I mean, he was in a drone factory.

00:38:49.971 --> 00:38:50.091
 Right.

00:38:50.871 --> 00:38:58.331
 But Trump is bombing Iran in places that are not strategically relevant.

00:38:58.331 --> 00:39:00.251
 He's openly bragging about war crimes.

00:39:00.351 --> 00:39:04.431
 He's like, well, now we're going to bomb their bridges, we're going to bomb their water plants, we're going to bomb their energy facilities.

00:39:04.451 --> 00:39:05.971
 But he's not bombing their water plants.

00:39:06.051 --> 00:39:08.331
 He could have been bombing their desalination plants.

00:39:08.551 --> 00:39:13.471
 He's not doing that because he knows they will bomb the desalination plants for Israel.

00:39:13.751 --> 00:39:18.031
 My point is he's, he's, he's threatening that now, openly threatening war crimes.

00:39:18.031 --> 00:39:22.531
 He's like, hey, you know what, we're going to just kill your guys during negotiations.

00:39:23.931 --> 00:39:24.791
 Like, what?

00:39:25.011 --> 00:39:28.791
 I think he's, I think he's backed himself into a corner.

00:39:29.091 --> 00:39:33.791
 And the question is, you know, the real guys with the real plans, what's their plan here?

00:39:35.571 --> 00:39:36.771
 They could get them out of the corner.

00:39:36.771 --> 00:39:36.851
 Let me ask you this.

00:39:37.511 --> 00:39:42.631
 Is boots on the ground on the table among the real decision makers?

00:39:45.711 --> 00:39:46.431
 Not yet.

00:39:47.551 --> 00:39:48.251
 I disagree.

00:39:48.671 --> 00:39:50.711
 I think boots on the ground is coming.

00:39:52.171 --> 00:40:00.791
 I, it could be coming, but they are not going to let it out of the, out of the, they are not going to let it out of the hat.

00:40:01.891 --> 00:40:02.291
 Yet.

00:40:02.771 --> 00:40:04.131
 For a couple of reasons.

00:40:04.131 --> 00:40:11.071
 And one of the reasons they may be pushing so hard on the surveillance is they want to make sure when it comes, they have no trouble getting it done.

00:40:12.511 --> 00:40:13.431
 Let me ask you this.

00:40:13.431 --> 00:40:19.191
 Are the real decision makers willing to put U.S. boots on the ground in Iran?

00:40:19.851 --> 00:40:20.171
 Yes.

00:40:21.291 --> 00:40:21.651
 Okay.

00:40:22.031 --> 00:40:22.791
 So we agree on that.

00:40:23.231 --> 00:40:24.731
 The goal wouldn't be to win the war.

00:40:24.811 --> 00:40:26.591
 The goal would be to get rid of the Americans.

00:40:26.591 --> 00:40:29.931
 The goal, the goal, the goal is to, it's just desperate.

00:40:30.951 --> 00:40:35.251
 The powers that be will do anything to maintain dollar hegemony.

00:40:36.111 --> 00:40:36.711
 And power.

00:40:37.991 --> 00:40:38.211
 Right.

00:40:38.291 --> 00:40:39.791
 But their personal power as well.

00:40:40.291 --> 00:40:46.031
 Don't grind through 10,000 American soldiers like they're eating a sandwich.

00:40:46.031 --> 00:40:46.951
 That's totally the old story.

00:40:47.071 --> 00:40:50.911
 They will drop a nuclear bomb on Chicago and say it was the Russians.

00:40:51.411 --> 00:40:52.391
 Yeah, absolutely they will.

00:40:52.651 --> 00:40:52.871
 Right.

00:40:53.571 --> 00:40:54.011
 Totally.

00:40:54.611 --> 00:40:54.771
 Yeah.

00:40:55.231 --> 00:40:56.731
 You're dealing with psychopaths.

00:40:57.731 --> 00:41:03.331
 So boots, if you, if you think that boots on the ground isn't an option, you're, you're kidding, you're kidding yourself.

00:41:04.671 --> 00:41:05.071
 Yep.

00:41:05.211 --> 00:41:05.451
 Okay.

00:41:06.451 --> 00:41:12.071
 Let's move on to the last round of FedWatch this week.

00:41:12.151 --> 00:41:13.111
 This is private equity.

00:41:14.071 --> 00:41:16.171
 You sent this story and I'm so glad.

00:41:16.471 --> 00:41:17.791
 It's such a, such a good story.

00:41:19.031 --> 00:41:23.891
 Amid $41 billion, Pennsylvania teachers' pension cites private equity as biggest drag.

00:41:23.951 --> 00:41:26.031
 I thought private equity says to make everybody a lot of money.

00:41:26.551 --> 00:41:26.811
 Weird.

00:41:27.531 --> 00:41:33.711
 Pennsylvania's public school employees' pension fund is $41 billion short of what it needs to pay benefits.

00:41:34.251 --> 00:41:42.551
 Last year, it missed the investment benchmark that officials set, a result they said was primarily due to performance within private equity.

00:41:43.031 --> 00:41:54.811
 We're talking about the public school employees' retirement system, P-S-E-R-S, invested $10.1 billion in private equity with the goal of earning a 10.06% return.

00:41:55.011 --> 00:41:57.811
 In fact, the return was just 2.59%.

00:41:58.431 --> 00:42:07.431
 According to P-S-E-R-S, private equity reduced the fund's overall return by 0.59 percentage points more than any other asset class.

00:42:08.211 --> 00:42:11.451
 The $41 billion shortfall is real.

00:42:11.591 --> 00:42:13.011
 It's not just an accounting figure.

00:42:13.511 --> 00:42:22.951
 Because taxpayers ultimately have to make up that cost as the state spends more to keep its promises to the fund's 500,000 members and their beneficiaries or survivors.

00:42:23.151 --> 00:42:36.031
 An investigation by the Center Square found that private equity was the only one of P-SER's eight asset classes to miss its benchmark over one-year, three-year, five-year, 10-year, and 15-year period.

00:42:36.131 --> 00:42:38.751
 So this is—private equity is just a dog.

00:42:38.911 --> 00:42:39.831
 I mean, what are you doing?

00:42:40.671 --> 00:42:45.631
 Private equity invests in companies that aren't publicly—private equity invests in companies that aren't publicly traded.

00:42:45.931 --> 00:42:48.491
 Pension funds have embraced the asset class.

00:42:49.051 --> 00:42:57.051
 It had outperformed stocks and bonds in the past, although it charges higher fees and ties up investors' money for years.

00:42:57.951 --> 00:43:05.871
 Since last year, pension systems in other states are beginning to dump private equity, including Alaska, Maine, Washington, Ohio, Nevada, and Virginia.

00:43:06.951 --> 00:43:12.891
 Alaska officials concluded the key drivers of private equity's golden era in the past couple of decades have reversed.

00:43:13.411 --> 00:43:15.131
 So the good times are over.

00:43:15.811 --> 00:43:23.191
 And they're talking about—they point to—Alaska's point to tighten credit, geopolitical tensions, and increased borrowing costs.

00:43:24.071 --> 00:43:31.771
 So they're saying the period of unusually favorable, it's unlikely that private equity is ever going to get back to the good old days.

00:43:32.391 --> 00:43:42.511
 So it's been astonishing because the excuse for going into private equity is we can give up liquidity if we get a higher performance.

00:43:43.151 --> 00:43:43.271
 Right.

00:43:43.411 --> 00:43:50.551
 And if you look at how it's performed, then the question is, how do you calculate performance if something's not public?

00:43:50.931 --> 00:44:04.771
 And if you look at the games that they've used to say that they have higher performance when they absolutely don't, and that's not to mention what the impact is on the tax base.

00:44:04.951 --> 00:44:12.751
 Because now you have state pension funds investing in things which are destroying the economy and the tax base in many situations.

00:44:13.431 --> 00:44:18.631
 So I just, on the second quarter wrap-up, I had a video of Jeff Gonlach, who runs DoubleLine.

00:44:19.131 --> 00:44:22.131
 He was talking about an insurance company that'd come into his firm.

00:44:22.731 --> 00:44:35.271
 They had eight different private equity managers who—or they had eight different private equity managers that had the same part of the same deal.

00:44:35.271 --> 00:44:41.791
 And they reported eight different returns for the same exact deal.

00:44:42.231 --> 00:44:42.751
 Right.

00:44:43.211 --> 00:44:43.451
 Right.

00:44:43.511 --> 00:44:45.411
 They're talking out of ten sides of their mouth.

00:44:45.811 --> 00:44:49.391
 It went from, I think the numbers were something like 90% to 8%.

00:44:49.391 --> 00:44:57.891
 So basically, the recording of return is a joke until you exit.

00:44:58.351 --> 00:45:01.571
 And of course, now they can't exit because of interest rates and other factors.

00:45:01.931 --> 00:45:02.191
 Right.

00:45:02.191 --> 00:45:17.031
 So we have no idea how bad this is because the games that are being taken to not report the truth and to extend the funds out for longer and longer without a redemption is getting worse and worse.

00:45:17.151 --> 00:45:19.011
 So nobody knows how bad this is.

00:45:20.871 --> 00:45:21.311
 Right.

00:45:21.671 --> 00:45:27.891
 Let me summarize private equity this way because I looked into it in connection with—I was studying something else and I ran into private equity.

00:45:28.591 --> 00:45:35.251
 Private equity involves the investment of—investors invest in companies that aren't publicly traded.

00:45:35.371 --> 00:45:38.111
 So there's a lack of transparency kind of at the outset.

00:45:38.891 --> 00:45:41.951
 But the real way it works is the investors divide into two classes.

00:45:43.251 --> 00:45:48.111
 Insiders who are in good with the fund, people running the private equity fund, and suckers.

00:45:48.831 --> 00:45:49.191
 Right.

00:45:49.431 --> 00:45:55.371
 And the game is facilitated by skinning the suckers, by shearing the sheep, the suckers, in the fund.

00:45:56.031 --> 00:46:00.811
 So what they do is they give the insiders preferential treatment and they screw the suckers.

00:46:00.971 --> 00:46:06.951
 So let me read you—there's a story I'm including, a link in the show notes.

00:46:07.011 --> 00:46:07.991
 I just want to read from it.

00:46:08.771 --> 00:46:12.951
 It's called SEC Chairman Alerted to Horrific Private Equity Side Letters.

00:46:13.031 --> 00:46:17.471
 So this is side letters or how the game, how the skinning game is done.

00:46:18.131 --> 00:46:31.731
 SEC Chairman Gary Gessler was recently alerted to frequently illegal side letter agreements that pay certain investors aware of a fraud within a fund not to tell other investors about it.

00:46:32.591 --> 00:46:35.671
 So the side letters, in other words, include criminal acts.

00:46:36.071 --> 00:46:37.771
 That's a conspiracy to commit fraud.

00:46:37.771 --> 00:46:41.671
 So you're involving some of the investors in a criminal fraud against the other investors.

00:46:41.991 --> 00:46:42.151
 Yeah.

00:46:42.291 --> 00:46:43.371
 So there's all these side letters.

00:46:43.491 --> 00:46:48.531
 A side letter is an agreement between the general fund and one of the investors, what's called a limited partner.

00:46:49.011 --> 00:46:49.211
 Right.

00:46:49.291 --> 00:46:51.131
 And you don't know how many side letters there are.

00:46:51.191 --> 00:46:52.111
 They're not going to tell you that.

00:46:52.451 --> 00:46:56.031
 A side letter can say anything up to and including, you just heard, a crime.

00:46:56.671 --> 00:47:03.631
 So here's what they do with these side letters that give preferential treatment to the insiders and screw everybody else.

00:47:04.291 --> 00:47:05.431
 They pay different fees.

00:47:06.711 --> 00:47:09.091
 The insiders are given different investment opportunities.

00:47:09.091 --> 00:47:22.491
 They enjoy different rates of return, different redemption rights, different degrees of access to information about fund strategies and portfolio holdings, and different liquidation procedures.

00:47:23.751 --> 00:47:32.771
 So sometimes insiders, if an investment, if one investment among many in a private equity fund goes bad, the insiders are allowed to get out of it.

00:47:32.831 --> 00:47:36.311
 They don't have to, and they just pass the losses on to everybody else, to the suckers.

00:47:36.951 --> 00:47:39.271
 Private equity is just one of huge fraud is what I'm telling you.

00:47:39.611 --> 00:47:41.591
 Okay, but let me go through this with you.

00:47:41.591 --> 00:47:46.451
 So Gensler goes to the SEC in 2020, right, or 2021.

00:47:47.011 --> 00:47:48.011
 2021, right.

00:47:48.231 --> 00:47:54.491
 The SEC exam staff has just issued a private fund risk alert about these side letters, okay?

00:47:55.071 --> 00:47:55.251
 Yeah.

00:47:55.311 --> 00:48:06.711
 Gensler, bills can, you know, works on this and proposes the private fund investor rules, including dedicated presidential treatment rule aimed at side letters.

00:48:07.511 --> 00:48:14.971
 The SEC adopts this rule in August 2023 on a three to two vote.

00:48:15.051 --> 00:48:17.511
 So two voted against it, if you can imagine that.

00:48:18.051 --> 00:48:19.691
 That's unbelievable political.

00:48:20.211 --> 00:48:25.531
 Because basically you've got two SEC commissioners saying, yeah, we want private equity guys to be free to break the law.

00:48:26.071 --> 00:48:27.071
 Right, right.

00:48:27.071 --> 00:48:32.511
 Okay, so wait, a coalition of industry trade groups come together, and here they go again.

00:48:33.391 --> 00:48:37.551
 They sue, and the courts overrule the SEC and stop it.

00:48:38.491 --> 00:48:39.011
 And the fifth circuit.

00:48:39.011 --> 00:48:39.071
 Wow.

00:48:39.631 --> 00:48:40.951
 Right, right.

00:48:41.131 --> 00:48:42.811
 Which, the fifth circuit did you say?

00:48:42.991 --> 00:48:43.631
 Fifth circuit.

00:48:44.091 --> 00:48:44.611
 Interesting.

00:48:45.031 --> 00:48:46.331
 But it's getting even better.

00:48:46.471 --> 00:48:47.971
 This is June 5th, 2024.

00:48:47.971 --> 00:48:57.451
 The fifth circuit unanimously vacated the entire rule package, package ruling the SEC lacks statutory authority to adopt it.

00:48:58.151 --> 00:49:06.591
 Yeah, it lacks, yeah, because it lacks statutory authority to ratify what is a per se violation of the law, to ratify illegal agreements.

00:49:06.691 --> 00:49:11.711
 The SEC, no one has authority in the U.S. to ratify illegal agreements, which is what these are.

00:49:12.131 --> 00:49:12.431
 Right.

00:49:14.111 --> 00:49:17.471
 I mean, this came, let me explain how this came under my radar.

00:49:17.631 --> 00:49:22.911
 It came under my radar in reinsurance, where one company would go to, insurance company A goes to insurance company B,

00:49:22.971 --> 00:49:30.831
 says, listen, I've got $100 million of liability exposure for this policy that I've got to dump because it looks bad for regulators.

00:49:31.391 --> 00:49:33.731
 So insurance company B says, okay, well, we'll sell you insurance.

00:49:33.811 --> 00:49:36.051
 We'll take on that $100 million of liability ourself.

00:49:36.571 --> 00:49:41.331
 Okay, so off goes the liability off its balance sheet from insurance company A, right?

00:49:41.851 --> 00:49:42.011
 Right.

00:49:42.011 --> 00:49:50.051
 No, not right, because there's a side letter between the two insurance companies that say, yeah, we'll never submit a claim on the reinsurance policy.

00:49:50.291 --> 00:49:51.291
 But here's the problem.

00:49:51.291 --> 00:50:06.551
 If you're a pension fund manager and you're allocating money to managers, why would you ever put money in private equity if you know the rules of the game?

00:50:06.751 --> 00:50:07.971
 Because you don't know any better.

00:50:08.011 --> 00:50:08.571
 Private criminality.

00:50:09.731 --> 00:50:11.231
 Or you're bought off.

00:50:12.391 --> 00:50:13.251
 You're bought off.

00:50:13.951 --> 00:50:16.851
 And we're going to look at a chart and we're going to talk about bought off.

00:50:17.171 --> 00:50:21.811
 Because there is a serious governance problem in the pension fund industry.

00:50:22.991 --> 00:50:27.611
 I would have to agree with that without even knowing what we're going to look at.

00:50:28.771 --> 00:50:32.091
 This is outrageous what's going on with private equity, side letters.

00:50:33.551 --> 00:50:34.871
 But they go back along with it.

00:50:34.931 --> 00:50:38.371
 The side letters problem goes back 20, 40 years.

00:50:38.891 --> 00:50:45.251
 The same problem of pouring money into an industry that can't be trusted.

00:50:45.811 --> 00:50:49.391
 It's the same story coming into the financial crisis.

00:50:50.011 --> 00:50:53.731
 They knew that there was mammoth mortgage fraud.

00:50:54.191 --> 00:50:54.811
 They knew.

00:50:55.291 --> 00:50:57.071
 They had inside information.

00:50:57.531 --> 00:50:58.111
 They knew.

00:50:58.311 --> 00:50:59.571
 Even the Chinese knew.

00:51:00.051 --> 00:51:07.271
 I met a fabulous economist who was the deputy at the IMF who had come from China.

00:51:07.711 --> 00:51:12.411
 The Chinese, he was warning the Chinese that the mortgage bubble was going to, you know, burst.

00:51:12.551 --> 00:51:20.511
 You know, my question about the financial crisis now is, were any credit default swap contracts at all valid?

00:51:20.931 --> 00:51:25.311
 Or are they all invalid due to the side letters saying that the insurance would never be paid?

00:51:25.571 --> 00:51:26.271
 I don't know.

00:51:26.691 --> 00:51:27.131
 I don't know.

00:51:27.811 --> 00:51:28.391
 You know, it's possible.

00:51:28.391 --> 00:51:30.211
 Is that why there were no prosecutions?

00:51:30.271 --> 00:51:35.491
 Because if there were prosecutions, you'd have to put the entire financial industry in prison for credit default swaps?

00:51:35.631 --> 00:51:36.891
 That's what it's looking like now.

00:51:37.891 --> 00:51:56.151
 So, you know, if you have so much officially sanctioned covert operations in these situations that you can't open the lid on the covert fraud without opening the lid on the covert fraud.

00:51:56.831 --> 00:51:57.691
 That's the problem.

00:51:58.691 --> 00:51:59.291
 Right.

00:51:59.851 --> 00:52:01.851
 The U.S. economy depends on fraud.

00:52:02.631 --> 00:52:02.851
 Yes.

00:52:03.011 --> 00:52:05.111
 The financial economy depends on fraud.

00:52:05.271 --> 00:52:06.111
 It is a fraud.

00:52:07.051 --> 00:52:07.951
 That's where we are.

00:52:08.231 --> 00:52:10.571
 It depends on criminal cash flows.

00:52:11.051 --> 00:52:11.351
 Yes.

00:52:11.751 --> 00:52:11.991
 Right.

00:52:12.171 --> 00:52:13.751
 That's what this is looking like.

00:52:13.931 --> 00:52:15.851
 These side letters are so outrageous.

00:52:16.091 --> 00:52:25.011
 To write an agreement saying that, well, the agreement is that we, the insurance policy is a fraud to fool regulators.

00:52:25.631 --> 00:52:25.951
 Right.

00:52:27.451 --> 00:52:28.711
 That's how you run your business?

00:52:29.331 --> 00:52:29.451
 Yeah.

00:52:29.491 --> 00:52:30.151
 And auditors.

00:52:30.491 --> 00:52:31.151
 And the auditors.

00:52:31.151 --> 00:52:31.751
 And investors.

00:52:32.511 --> 00:52:33.011
 The auditors.

00:52:33.731 --> 00:52:34.011
 Right.

00:52:36.611 --> 00:52:37.491
 It's breathtaking.

00:52:37.751 --> 00:52:39.471
 We're hitting the tip of an iceberg here.

00:52:39.711 --> 00:52:41.491
 Let's go to the private equity charge you got.

00:52:42.131 --> 00:52:43.091
 I'll start with CalPERS.

00:52:43.791 --> 00:52:44.231
 Okay.

00:52:44.371 --> 00:52:46.531
 So I wanted to use CalPERS as an example.

00:52:47.111 --> 00:52:51.551
 CalPERS has, I think, the biggest private equity position of any pension fund in the world.

00:52:52.831 --> 00:52:53.531
 That's huge.

00:52:53.591 --> 00:52:53.811
 Yeah.

00:52:53.951 --> 00:52:55.111
 Or certainly in the U.S.

00:52:55.111 --> 00:52:59.871
 It's $120 billion, I think, as of the beginning of 2026.

00:53:00.791 --> 00:53:10.071
 So it's approximately, I think it's 19.5% of their total allocation.

00:53:10.911 --> 00:53:16.671
 Now, the guys who have a higher percentage, Sean, if you remember Harvard, Yale, and, you know,

00:53:16.671 --> 00:53:22.211
 the University and Foundation endowments, who went all in, and they've really gotten hung

00:53:22.211 --> 00:53:25.271
 because they, at a time they need the liquidity, they don't have it.

00:53:25.751 --> 00:53:32.511
 Now, this is a problem because if you need liquidity all of a sudden and you've got this much of

00:53:32.511 --> 00:53:38.011
 your portfolio in something that is completely illiquid, you know, and add the real estate

00:53:38.011 --> 00:53:39.591
 assets and the private debt.

00:53:40.091 --> 00:53:40.831
 I mean, look at this.

00:53:40.891 --> 00:53:49.351
 You've got 36% of your public equity, you know, that's where your liquidity is in your fixed

00:53:49.351 --> 00:53:49.731
 income.

00:53:50.071 --> 00:53:55.851
 So you've got about 67% that's liquid, but the rest is pretty illiquid.

00:53:55.851 --> 00:54:01.691
 And the problem with a lot of that illiquid stuff is you don't have honest prices.

00:54:03.371 --> 00:54:03.891
 Right?

00:54:04.471 --> 00:54:06.011
 Yeah, that's, that's, wow.

00:54:06.151 --> 00:54:09.171
 So this is, that's not liquid.

00:54:09.911 --> 00:54:10.271
 Right.

00:54:10.391 --> 00:54:14.771
 And the other problem is a lot of what you're investing in the private equity portfolio is

00:54:14.771 --> 00:54:15.991
 destroying your tax base.

00:54:17.191 --> 00:54:18.831
 So, right.

00:54:19.091 --> 00:54:19.871
 And explain that.

00:54:19.931 --> 00:54:21.451
 How is, how is that destroying your tax base?

00:54:21.751 --> 00:54:28.191
 So let's say I have a whole series of businesses and we showed this.

00:54:28.331 --> 00:54:33.111
 If you look at the interview I did with Tiffany Sianci on private equity, we show,

00:54:33.111 --> 00:54:37.151
 Mark Skidmore's graphs of all the different businesses they've been rolling up.

00:54:37.151 --> 00:54:43.831
 And so you roll up at, an industry of businesses like veterinarian clinics, and

00:54:43.831 --> 00:54:52.491
 then you add in very extractive policies that not only jack up prices, but do things that

00:54:52.491 --> 00:54:54.351
 really destroy the quality of service.

00:54:54.451 --> 00:54:59.691
 So we saw this in healthcare where you shut down lots of the different hospitals.

00:54:59.911 --> 00:55:04.471
 Interestingly enough, that happened in Pennsylvania where you had a whole series of hospitals.

00:55:04.831 --> 00:55:06.531
 We covered it on money markets.

00:55:06.751 --> 00:55:06.851
 Right.

00:55:07.011 --> 00:55:07.191
 Yeah.

00:55:07.191 --> 00:55:13.291
 And, when I sent this article to Tim, he sent me back a whole description of,

00:55:13.411 --> 00:55:17.851
 you know, how they destroyed the hospital base in the area around where he lives.

00:55:17.851 --> 00:55:22.771
 And it was, it was private equity guys and it didn't have to happen, you know, but it was,

00:55:22.891 --> 00:55:28.171
 it was a way of sucking up a lot of money upfront and then letting the thing go down.

00:55:28.171 --> 00:55:32.811
 So you're, you're trying to destroy something by liquidating in a way that makes you money.

00:55:32.911 --> 00:55:33.991
 So it's very extractive.

00:55:34.691 --> 00:55:38.831
 And so, what was I going to tell you about the CalPERS?

00:55:38.931 --> 00:55:45.051
 But anyway, so you've got a state pension fund, it's investing in something that destroys

00:55:45.051 --> 00:55:50.771
 the tax base, encourages criminality and loses the beneficiaries money.

00:55:50.891 --> 00:55:51.991
 Why are you doing that?

00:55:52.871 --> 00:55:53.031
 Yeah.

00:55:53.171 --> 00:55:53.371
 Right.

00:55:53.631 --> 00:55:58.451
 I mean, so to summarize, private equity funds come in and they destroy things externally,

00:55:58.451 --> 00:55:59.351
 right?

00:55:59.371 --> 00:56:04.051
 By looting a hospital, looting a toy manufacturer, whoever bankrupting it.

00:56:04.251 --> 00:56:06.531
 So they stay, they rob people externally.

00:56:06.731 --> 00:56:09.451
 And as it turns out, we're reporting now on money markets.

00:56:09.871 --> 00:56:12.811
 They're rip, they're ripping people off internally through side letters.

00:56:12.891 --> 00:56:19.531
 So I've had conversations with money managers who say, wait a minute, you know, I know a great

00:56:19.531 --> 00:56:20.591
 private equity firm.

00:56:20.851 --> 00:56:23.011
 They get higher than market returns.

00:56:23.231 --> 00:56:24.551
 They're really, really good.

00:56:24.651 --> 00:56:25.791
 They're ethical, et cetera.

00:56:26.211 --> 00:56:28.691
 And my attitude is, I don't want to hear about them.

00:56:28.831 --> 00:56:33.531
 I don't want to know about them because the laws that govern them and the rules that govern

00:56:33.531 --> 00:56:35.791
 them are not acceptable.

00:56:36.511 --> 00:56:41.251
 So I just don't want to hear about it because they could be fine today and terrible tomorrow.

00:56:41.771 --> 00:56:46.271
 And, you know, the incentives, if you look at how, and I go through this in the interview

00:56:46.271 --> 00:56:51.851
 with Tiffany, if you look at how the incentive systems are set up, it's set up to extract and

00:56:51.851 --> 00:56:52.351
 liquidate.

00:56:52.891 --> 00:56:53.051
 Right.

00:56:53.051 --> 00:56:58.611
 I find that point of view that they're making money on private equity is interesting as people

00:56:58.611 --> 00:57:01.751
 who invested early on with Bernie Madoff and made a lot of money.

00:57:02.211 --> 00:57:03.471
 But his returns were higher too.

00:57:03.571 --> 00:57:04.431
 What happened with that?

00:57:05.071 --> 00:57:05.311
 Right.

00:57:05.731 --> 00:57:07.751
 You're not going to make money in a Ponzi scheme.

00:57:07.951 --> 00:57:09.551
 You're not going to make money in a fraud, period.

00:57:09.771 --> 00:57:11.111
 Stop fantasizing.

00:57:11.631 --> 00:57:17.411
 But if they have a model which is fundamentally flawed, which they do, and they have laws and

00:57:17.411 --> 00:57:21.551
 taxes which are fundamentally flawed, I don't care who you are.

00:57:21.771 --> 00:57:25.031
 I don't care if you're John the Apostle.

00:57:25.371 --> 00:57:31.311
 If you're in a business model that is fraudulent, and if you are free to do fraudulent things,

00:57:31.371 --> 00:57:34.371
 if the laws don't apply to you, I don't want to know from you.

00:57:35.371 --> 00:57:35.771
 Yeah.

00:57:35.911 --> 00:57:37.471
 It's just not going to work.

00:57:37.871 --> 00:57:38.151
 Right.

00:57:38.151 --> 00:57:38.311
 Right.

00:57:39.131 --> 00:57:39.391
 Right.

00:57:39.451 --> 00:57:41.091
 You're not selling me.

00:57:41.231 --> 00:57:43.071
 You're not getting me to sign up for a fraud.

00:57:43.471 --> 00:57:44.291
 I'm not doing it.

00:57:44.551 --> 00:57:44.711
 Right.

00:57:45.431 --> 00:57:49.731
 Or you're not getting me to sign up with somebody who's free to be fraudulent.

00:57:50.511 --> 00:57:50.911
 Right.

00:57:51.091 --> 00:57:51.311
 Right.

00:57:51.311 --> 00:57:51.531
 Right.

00:57:51.971 --> 00:57:52.151
 Right.

00:57:52.411 --> 00:57:59.651
 I'm going to steal from the community, and I'm going to steal from the people who invested

00:57:59.651 --> 00:58:01.851
 their trust in me and their money with me.

00:58:01.911 --> 00:58:03.011
 I'm going to rob them, too.

00:58:03.531 --> 00:58:10.671
 I had one client who, and she found out about this online because the lawsuit went up, one

00:58:10.671 --> 00:58:14.871
 of her relatives put her into Madoff, and Madoff was giving cash kickbacks.

00:58:15.731 --> 00:58:15.971
 Yeah.

00:58:16.251 --> 00:58:17.371
 I don't doubt that.

00:58:17.371 --> 00:58:24.051
 He was paying family members who knew it was a Ponzi scheme to bring in other family

00:58:24.051 --> 00:58:26.891
 and giving them cash kickbacks, which, of course, is illegal.

00:58:27.291 --> 00:58:28.311
 I totally believe that.

00:58:28.531 --> 00:58:32.411
 But, of course, because JPMorgan Chase was running the whole thing was not a problem.

00:58:32.851 --> 00:58:33.071
 Right.

00:58:33.191 --> 00:58:34.851
 I know a nephew of Madoff.

00:58:34.911 --> 00:58:38.731
 He doesn't know that I know he's a nephew, but I do, and I never trusted the guy.

00:58:38.811 --> 00:58:39.611
 I scratched around.

00:58:39.751 --> 00:58:41.431
 I found out, like, yeah, figures.

00:58:43.071 --> 00:58:43.511
 Okay.

00:58:43.511 --> 00:58:45.411
 Let's keep it going with private equity charts.

00:58:45.591 --> 00:58:50.131
 Value of Private Equity Deals in the U.S. in 2025 by sector.

00:58:50.291 --> 00:58:50.511
 Yeah.

00:58:50.631 --> 00:58:53.351
 And my guess is a lot of that is data centers.

00:58:53.951 --> 00:58:54.271
 That's my guess.

00:58:54.271 --> 00:58:54.691
 Here we go.

00:58:54.791 --> 00:58:55.611
 It's the tech bros.

00:58:56.271 --> 00:58:56.511
 Yeah.

00:58:56.751 --> 00:58:57.611
 Tech bros.

00:58:58.651 --> 00:59:05.691
 And remember, now, what you are seeing in Washington is you're seeing a political coalition formed

00:59:05.691 --> 00:59:09.891
 by the private equity guys and crypto guys and tech bros getting together.

00:59:10.031 --> 00:59:11.831
 So it's a very ugly picture.

00:59:12.871 --> 00:59:13.051
 Yeah.

00:59:13.551 --> 00:59:15.931
 But here's what's interesting.

00:59:16.091 --> 00:59:17.091
 I just saw a chart.

00:59:17.591 --> 00:59:24.151
 We have the wonderful Cori Lynn doing major research for us on a data center paper.

00:59:24.971 --> 00:59:30.291
 So Taylor Hudak published one on how taxpayers are financing data centers.

00:59:30.671 --> 00:59:34.931
 But we wanted to follow up with how, you know, where the private money is, including pension,

00:59:35.011 --> 00:59:37.191
 your pension fund and IRAs and 401ks.

00:59:37.591 --> 00:59:40.271
 Where's that money coming that's financing data centers?

00:59:40.451 --> 00:59:44.131
 And she just sent me a graph that showed the five big hyperscalers.

00:59:44.251 --> 00:59:47.511
 So it's Meta, it's Amazon, it's Google, it's Oracle.

00:59:48.071 --> 00:59:53.411
 And their investment is going like this and their operating cash flow is going like this.

00:59:55.251 --> 00:59:56.171
 I mean, you look at that.

00:59:56.411 --> 00:59:58.671
 No, my face looked exactly like yours.

00:59:58.771 --> 01:00:00.091
 I was like, what?

01:00:01.271 --> 01:00:01.751
 Yeah.

01:00:01.751 --> 01:00:02.911
 What's wrong with this picture?

01:00:03.531 --> 01:00:05.131
 It's shocking.

01:00:05.931 --> 01:00:11.471
 So I haven't had a chance to dig into it, but Cori wrote it, said it to me, and she said,

01:00:11.531 --> 01:00:12.391
 wait till you see this.

01:00:13.791 --> 01:00:14.231
 Wow.

01:00:14.571 --> 01:00:15.151
 I know.

01:00:15.891 --> 01:00:16.291
 Wow.

01:00:18.031 --> 01:00:18.471
 Huh.

01:00:18.711 --> 01:00:19.891
 When's that piece coming out?

01:00:20.791 --> 01:00:21.391
 I don't know.

01:00:21.531 --> 01:00:24.771
 You know, we're doing the research and I've asked Taylor if she'd write it, but I haven't

01:00:24.771 --> 01:00:25.711
 heard back from her yet.

01:00:26.071 --> 01:00:26.371
 Wow.

01:00:26.411 --> 01:00:26.871
 Okay.

01:00:26.951 --> 01:00:30.011
 So I just wrote her this morning and said, look, we got somebody doing all the research.

01:00:30.291 --> 01:00:32.011
 So she'll just write it up.

01:00:32.651 --> 01:00:37.031
 Let's go to a timeline chart of private equity globally.

01:00:37.631 --> 01:00:38.371
 Here you go.

01:00:38.471 --> 01:00:39.711
 It looks like it's a weird chart.

01:00:39.711 --> 01:00:40.871
 Yeah, here's what's interesting.

01:00:41.191 --> 01:00:42.231
 Yeah, it is a weird chart.

01:00:42.331 --> 01:00:43.671
 And I'll tell you why it's a weird chart.

01:00:43.671 --> 01:00:51.391
 Because we've had, you know, so many companies refuse or throttle down or limit redemptions.

01:00:52.011 --> 01:00:58.411
 And there's been a huge backup because now with interest rates higher, you know, we have

01:00:58.411 --> 01:01:02.631
 more and more companies in the private equity portfolios and they can't get an exit.

01:01:03.531 --> 01:01:09.091
 And so you'd think the volume would be tapering down, but no, it's going up.

01:01:09.391 --> 01:01:10.191
 And frankly, I...

01:01:10.191 --> 01:01:12.111
 This, I understand.

01:01:12.651 --> 01:01:13.651
 That's QA.

01:01:13.651 --> 01:01:14.271
 From the Fed.

01:01:14.351 --> 01:01:17.791
 That's the Fed buying private assets from non-banks.

01:01:17.971 --> 01:01:18.251
 Right.

01:01:18.431 --> 01:01:18.611
 And that's SPAC.

01:01:18.611 --> 01:01:19.531
 Willing at $5 trillion.

01:01:19.951 --> 01:01:20.171
 Right.

01:01:20.631 --> 01:01:21.091
 And SPAC.

01:01:21.091 --> 01:01:24.611
 This, though, where is this coming from?

01:01:24.711 --> 01:01:25.971
 I think that's data centers.

01:01:26.471 --> 01:01:27.331
 That's what I believe.

01:01:27.491 --> 01:01:33.471
 Because I, my understanding just anecdotally from the field is a lot of the people, you

01:01:33.471 --> 01:01:35.471
 know, financing it are private equity guys.

01:01:35.891 --> 01:01:36.231
 Okay.

01:01:36.531 --> 01:01:41.311
 But the data centers, that answer only goes so far because the data centers doesn't involve,

01:01:41.311 --> 01:01:45.831
 unlike 2021 and 2022 and that chart, that was newly created money.

01:01:45.831 --> 01:01:50.651
 That's $5 trillion of fresh cash printed up in deposit accounts by the Federal Reserve.

01:01:51.071 --> 01:01:51.211
 Okay.

01:01:51.311 --> 01:01:52.111
 Go back to that chart.

01:01:52.111 --> 01:01:52.991
 There's no such thing.

01:01:52.991 --> 01:01:54.511
 Go back and look at that chart.

01:01:55.051 --> 01:01:55.171
 Yeah.

01:01:55.251 --> 01:01:55.451
 Okay.

01:01:55.831 --> 01:01:57.331
 Look at 2018.

01:01:58.611 --> 01:01:59.091
 Yep.

01:01:59.471 --> 01:02:01.531
 What happened in October 2018?

01:02:02.671 --> 01:02:03.411
 Don't know.

01:02:04.731 --> 01:02:06.091
 Fed starts shrinking its balance sheet.

01:02:06.471 --> 01:02:07.471
 FASB 56.

01:02:08.211 --> 01:02:08.691
 Okay.

01:02:09.391 --> 01:02:09.711
 Okay.

01:02:10.171 --> 01:02:17.871
 So now as much money as you want can disappear from the federal government and you don't

01:02:17.871 --> 01:02:18.791
 have to report it.

01:02:19.631 --> 01:02:21.711
 Let me, let me, let me get at this a different way.

01:02:22.191 --> 01:02:24.611
 This money here was newly created.

01:02:24.751 --> 01:02:25.991
 That's freshly printed cash.

01:02:26.111 --> 01:02:27.111
 That's the Fed's balance sheet.

01:02:27.651 --> 01:02:27.731
 Right.

01:02:27.731 --> 01:02:29.931
 This money here was not newly created.

01:02:30.051 --> 01:02:31.291
 It came from somewhere else.

01:02:31.451 --> 01:02:31.831
 Right.

01:02:32.051 --> 01:02:33.211
 Where did it come from?

01:02:33.951 --> 01:02:34.871
 I.

01:02:34.871 --> 01:02:36.791
 Who, who, who lost with that gain?

01:02:38.731 --> 01:02:40.931
 You don't need anybody to lose with that gain.

01:02:41.371 --> 01:02:41.971
 Yes, you do.

01:02:42.411 --> 01:02:43.411
 No, because you have.

01:02:43.691 --> 01:02:44.751
 This is new money.

01:02:45.231 --> 01:02:46.031
 That's new money.

01:02:46.111 --> 01:02:47.371
 This is, this is, this is old money.

01:02:47.971 --> 01:02:50.071
 So for every bar, this here.

01:02:50.691 --> 01:02:50.931
 Right.

01:02:50.931 --> 01:02:52.031
 Let me go back up.

01:02:52.831 --> 01:03:00.191
 This, that bar back up there is from the previous year.

01:03:00.411 --> 01:03:02.511
 That's, that's, that came from somewhere else.

01:03:03.411 --> 01:03:03.711
 Okay.

01:03:04.251 --> 01:03:09.351
 And if you look at what you could launder through the U.S. government with either

01:03:09.351 --> 01:03:14.751
 new treasuries or, you know, oil revenue from Iraq, there are multiple places that money

01:03:14.751 --> 01:03:15.471
 could come from.

01:03:17.211 --> 01:03:20.951
 That money can come from the fiscal, you can steal it from the fiscal side.

01:03:21.051 --> 01:03:22.931
 You don't have to steal it from the monetary side.

01:03:22.931 --> 01:03:23.091
 Right.

01:03:23.171 --> 01:03:23.891
 I get that.

01:03:23.991 --> 01:03:24.151
 Right.

01:03:24.331 --> 01:03:24.471
 Right.

01:03:24.811 --> 01:03:26.251
 But there is a loser somewhere.

01:03:27.071 --> 01:03:27.911
 There is a loser.

01:03:28.251 --> 01:03:29.491
 There's a loser somewhere.

01:03:29.731 --> 01:03:30.671
 There is a loser there.

01:03:31.071 --> 01:03:31.671
 In 2025.

01:03:32.151 --> 01:03:32.331
 Right.

01:03:32.551 --> 01:03:34.791
 And it could have been, it could have been stocks.

01:03:35.051 --> 01:03:36.731
 It could have been real.

01:03:36.871 --> 01:03:37.611
 I'm not.

01:03:38.491 --> 01:03:40.371
 It could have been the offshore havens.

01:03:40.851 --> 01:03:41.191
 Okay.

01:03:42.871 --> 01:03:44.531
 There are many, many losers.

01:03:45.351 --> 01:03:45.611
 Yeah.

01:03:46.431 --> 01:03:47.591
 That's an interesting chart.

01:03:47.831 --> 01:03:47.951
 Okay.

01:03:48.211 --> 01:03:52.551
 So I will tell you the likely lead loser is the American taxpayer.

01:03:52.551 --> 01:03:54.051
 Right.

01:03:54.051 --> 01:03:54.891
 Right.

01:03:55.351 --> 01:04:02.691
 Because it probably related to treasuries or mortgage securities guaranteed by the

01:04:02.691 --> 01:04:05.151
 government going someplace, including off balance sheet.

01:04:05.771 --> 01:04:08.111
 The other thing is, oh, let's go back to this.

01:04:08.191 --> 01:04:09.011
 How big is that?

01:04:09.391 --> 01:04:14.231
 That is deal of value in, that's, we're not talking about jump change.

01:04:14.831 --> 01:04:16.031
 No, we're talking about $2 trillion.

01:04:21.591 --> 01:04:23.151
 That's a lot of, that's a lot of scratch.

01:04:23.671 --> 01:04:23.971
 Right.

01:04:24.731 --> 01:04:25.811
 So that's why.

01:04:25.911 --> 01:04:26.251
 I don't know.

01:04:26.671 --> 01:04:27.791
 We'll have to circle back to that one.

01:04:28.371 --> 01:04:33.231
 One of the hard parts I have, and I have to learn to do a better job on this.

01:04:33.771 --> 01:04:41.231
 When somebody is upset about the outrageous fraud of shoplifters, but they don't care about $2 trillion

01:04:41.231 --> 01:04:51.951
 or $21 trillion missing from the Department of Defense, I just, I don't know what to tell you.

01:04:54.831 --> 01:04:56.671
 Why, why do you need to like candy bars?

01:04:57.491 --> 01:04:57.691
 Yeah.

01:05:00.151 --> 01:05:00.551
 Okay.

01:05:00.631 --> 01:05:01.431
 Go ahead and scan away.

01:05:01.711 --> 01:05:01.811
 Yeah.

01:05:01.851 --> 01:05:02.411
 Can't have that.

01:05:02.791 --> 01:05:04.451
 But that, don't worry about $2 trillion.

01:05:04.731 --> 01:05:05.871
 That's a, that's a flesh wound.

01:05:07.731 --> 01:05:08.231
 All right.

01:05:08.251 --> 01:05:09.771
 Let's go to our, let's go to our last chart.

01:05:09.891 --> 01:05:12.051
 The winners, let's just get, let's just cut to the chase.

01:05:12.371 --> 01:05:13.211
 Who's TPG?

01:05:13.731 --> 01:05:14.551
 Why is it a dog?

01:05:16.411 --> 01:05:18.731
 That's the old Texas Pacific Partnership.

01:05:18.731 --> 01:05:22.431
 It's one of the, it's one of the private equity firms.

01:05:22.531 --> 01:05:25.651
 And I haven't looked at why their performance is lower than the other ones.

01:05:26.191 --> 01:05:30.011
 But basically you have, wait, I can't, let me get the.

01:05:30.691 --> 01:05:32.751
 So S&P 500 is second here.

01:05:32.791 --> 01:05:36.131
 With, since the going direct reset, 160% game.

01:05:36.131 --> 01:05:42.571
 So going direct reset means in August, 2019, when they reviewed the BlackRock going direct reset.

01:05:42.731 --> 01:05:42.971
 Right.

01:05:44.111 --> 01:05:46.231
 Discussion at the Jackson Hole.

01:05:46.231 --> 01:05:47.411
 That was central bankers.

01:05:47.531 --> 01:05:48.031
 Okay.

01:05:48.031 --> 01:05:51.591
 Since that time, S&P is up 150%.

01:05:51.591 --> 01:05:56.751
 And the, you know, the real outperformer here is the KKR.

01:05:57.311 --> 01:05:57.791
 Right.

01:05:57.951 --> 01:05:59.831
 Which is one of the biggest ones.

01:05:59.831 --> 01:06:03.011
 Then you've got Blackstone, who's one of the biggest ones.

01:06:03.151 --> 01:06:04.271
 Then the Carlisle Group.

01:06:04.391 --> 01:06:06.611
 And then TPG is way down in the bottom.

01:06:08.931 --> 01:06:16.111
 So what you see is, and particularly if you just look at the last year, they're all down 23, 24%.

01:06:16.111 --> 01:06:16.871
 Yeah.

01:06:17.291 --> 01:06:20.251
 You know, so the market's caught up with these guys.

01:06:20.251 --> 01:06:27.591
 Now, they're not, if you look at their stocks, John, their stocks don't reflect the drop in the value of portfolio.

01:06:28.431 --> 01:06:38.271
 Their stocks reflect, because remember, they're, they're not, their economics, the economics of the publicly traded stocks depend on the fees they get for managing those portfolios.

01:06:38.631 --> 01:06:52.171
 They're the management company for the portfolios, but portfolios are doing so badly that the manager's stock is weighed down because they're saying, you know, one, their performance bonuses are not coming in.

01:06:52.171 --> 01:06:55.971
 But the other thing is, going forward, their business doesn't look as good.

01:06:56.571 --> 01:06:56.671
 Right.

01:06:57.271 --> 01:06:57.471
 Yeah.

01:06:57.471 --> 01:07:02.471
 So it shows you know, if we had looked at a stock of just this year, they're in the basement.

01:07:03.451 --> 01:07:05.451
 So, and that's where they deserve to be.

01:07:06.771 --> 01:07:07.211
 Right.

01:07:07.271 --> 01:07:11.491
 You wonder what, you wonder what the next scam will be, since private equity seems to run its course.

01:07:12.191 --> 01:07:12.731
 Here's the thing.

01:07:12.851 --> 01:07:15.411
 I won't, you know, because I run an investment screen company.

01:07:15.771 --> 01:07:17.891
 I wouldn't touch these guys with a 10-foot pole.

01:07:18.891 --> 01:07:29.791
 I just, you know, you don't, you don't put money with people whose business model is to extract in violation of the law.

01:07:30.111 --> 01:07:30.511
 Yeah.

01:07:31.091 --> 01:07:33.851
 I don't, I don't want to invest in the Russian mafia.

01:07:34.211 --> 01:07:34.491
 Right?

01:07:34.671 --> 01:07:34.951
 Right.

01:07:35.171 --> 01:07:35.411
 Right.

01:07:35.411 --> 01:07:35.671
 Right.

01:07:35.911 --> 01:07:36.871
 For obvious reasons.

01:07:36.951 --> 01:07:37.191
 Why?

01:07:37.271 --> 01:07:37.611
 Right.

01:07:38.611 --> 01:07:41.911
 Because they'll take you out when it serves their purposes.

01:07:42.191 --> 01:07:42.831
 Yeah, exactly.

01:07:43.311 --> 01:07:46.151
 I mean, one, I don't want to finance people and run around killing people.

01:07:46.651 --> 01:07:51.611
 But the other thing is, I don't want to finance people who would just as soon steal from me.

01:07:52.411 --> 01:07:52.811
 Exactly.

01:07:53.291 --> 01:07:53.531
 Right.

01:07:54.451 --> 01:07:55.291
 I don't get it.

01:07:55.391 --> 01:07:56.091
 I don't get it.

01:07:56.211 --> 01:07:58.431
 I have an instinct of self-preservation.

01:07:58.811 --> 01:07:59.531
 Yeah, exactly.

01:08:00.051 --> 01:08:00.251
 Yeah.

01:08:00.751 --> 01:08:01.511
 It's so funny.

01:08:01.791 --> 01:08:09.231
 There's a great video I sometimes show of Charlie Munger and Buffett trying to talk about why they don't do private equity.

01:08:09.731 --> 01:08:13.791
 And Buffett's trying to be really careful because, you know, he's always afraid of getting sued.

01:08:14.311 --> 01:08:15.311
 And he's saying this and that.

01:08:15.311 --> 01:08:20.131
 And then Charlie just turns around and says, because they lie and they're criminals.

01:08:21.491 --> 01:08:26.311
 Yeah, well, he would know because one of Berkshire's big insurance companies itself was General Ray,

01:08:26.811 --> 01:08:29.591
 which has involved knee-deep in reinsurance and side letters.

01:08:30.411 --> 01:08:30.851
 Documented.

01:08:30.851 --> 01:08:31.671
 Exactly, right.

01:08:31.711 --> 01:08:35.051
 So they know all about it, Warren and his uncle, whatever.

01:08:35.051 --> 01:08:35.951
 I know.

01:08:35.971 --> 01:08:36.631
 Charlie Munger.

01:08:37.911 --> 01:08:39.331
 Yeah, I've done a deep dive on them.

01:08:39.491 --> 01:08:39.871
 They do.

01:08:40.131 --> 01:08:42.731
 I would say they understand a lot about criminality.

01:08:42.731 --> 01:08:43.711
 They do.

01:08:43.971 --> 01:08:51.671
 Uncle Warren, the insider trader with inside information about Wells Fargo dumping his shares ahead of the public knowledge of the company who had a Wells notice.

01:08:52.071 --> 01:08:55.431
 You'll be pleased to know the new Warren Buffett headline today.

01:08:56.491 --> 01:08:56.771
 Oh.

01:08:57.471 --> 01:09:00.811
 He's pulled his $6 billion donation from the Gates Foundation.

01:09:00.811 --> 01:09:01.551
 From Bill Gates.

01:09:01.931 --> 01:09:02.871
 I saw that.

01:09:04.211 --> 01:09:10.711
 I had to laugh.

01:09:10.711 --> 01:09:16.571
 Like the insider trader, you know, the guy who fleeces people with the insider trader, he's just, I draw the line at pedophilia.

01:09:16.671 --> 01:09:17.771
 That's just too, you know.

01:09:18.711 --> 01:09:20.791
 I guess that's a worthy line to draw.

01:09:20.791 --> 01:09:25.911
 If you really want to get down into the cesspool, then you've got to draw a line.

01:09:25.991 --> 01:09:26.811
 That's a good one to draw.

01:09:27.051 --> 01:09:27.291
 Thanks, Warren.

01:09:27.291 --> 01:09:29.151
 I think he's afraid of litigation.

01:09:29.831 --> 01:09:30.231
 Probably.

01:09:30.891 --> 01:09:31.071
 Yeah.

01:09:31.491 --> 01:09:31.811
 All right.

01:09:31.811 --> 01:09:34.631
 Let's keep it going with Space Military Global Tour Force.

01:09:34.711 --> 01:09:36.991
 One story this week is from the U.S. from the State Department.

01:09:38.191 --> 01:09:43.011
 State Department launches campaign to dismantle international criminal court's threat to American sovereignty.

01:09:44.071 --> 01:09:44.511
 Sovereignty.

01:09:44.671 --> 01:09:45.431
 Interesting topic.

01:09:45.611 --> 01:09:46.591
 Let's see what they got.

01:09:47.751 --> 01:09:55.031
 Marco Rubio, Secretary of State, announced sweeping campaign to dismantle the threat posed by the International Criminal Court to U.S. sovereignty.

01:09:55.791 --> 01:10:06.731
 The campaign will feature a whole-of-government response to systematically disable the ICC's ability to operate, target American servicemen or officials, or otherwise threaten American sovereignty.

01:10:06.731 --> 01:10:08.611
 This isn't really about American sovereignty.

01:10:10.451 --> 01:10:12.031
 It's about hegemony.

01:10:13.091 --> 01:10:27.211
 Anyway, Secretary of State claims the authority to prosecute and even imprison, the ICC says, the State Department, claims the authority to prosecute and even imprison American servicemen and officials operating on behalf of America's national interests.

01:10:27.771 --> 01:10:30.351
 Americans never signed up for this, the ICC.

01:10:30.651 --> 01:10:36.831
 All American presidents, since the ICC's ratification, have maintained that it doesn't have jurisdiction over Americans.

01:10:36.991 --> 01:10:37.911
 That's not really the issue.

01:10:38.471 --> 01:10:44.731
 The issue is other countries have the right to get together and sign treaties for their self-protection against war criminals.

01:10:45.291 --> 01:10:46.211
 That's what this is about.

01:10:46.311 --> 01:10:49.631
 This is about protecting war criminals from prosecution abroad.

01:10:50.631 --> 01:11:00.451
 So ICC was created in 2002, and it was the result of a treaty among a group of countries that didn't include the United States.

01:11:00.651 --> 01:11:04.051
 It's in the Hague, so, you know, well-known in Netherlands.

01:11:04.691 --> 01:11:08.151
 This was created by a group of countries not involving the United States.

01:11:08.291 --> 01:11:10.771
 It has never indicted or prosecuted an American.

01:11:11.551 --> 01:11:21.211
 What it has done is it has indicted Netanyahu, his minister of defense, and there is concern that they might be doing investigations,

01:11:21.211 --> 01:11:25.791
 or they have been doing investigations of situations that involve Americans.

01:11:25.971 --> 01:11:29.571
 So Americans have not been threatened in any way, right?

01:11:30.171 --> 01:11:30.531
 Right.

01:11:30.951 --> 01:11:31.231
 Right.

01:11:31.371 --> 01:11:33.331
 So they haven't indicted Americans.

01:11:33.491 --> 01:11:34.431
 They haven't.

01:11:34.431 --> 01:11:45.631
 Now, already, the U.S. has put sanctions on judges at the ICC, and so they're sanctioning these people and making it difficult for them to function all over the world.

01:11:45.631 --> 01:12:03.231
 And you've got people, judges and lawyers, suing in U.S. courts for the United States doing this to them because they're, I mean, it looks to me like countries have the power and the right to get together and agree to do this together and to hire and pay people to do it for them.

01:12:03.751 --> 01:12:04.371
 It's their right.

01:12:04.371 --> 01:12:04.531
 It's their right.

01:12:05.531 --> 01:12:05.851
 Exactly.

01:12:06.271 --> 01:12:17.011
 It's completely their right to get together as countries saying, you know, we've got to defend ourselves against genocidal war criminals who go around shooting children in the head for profit and for fun.

01:12:17.851 --> 01:12:19.931
 And we reserve the right to prosecute them.

01:12:20.011 --> 01:12:21.831
 And the U.S. says, no, no, no, you can't do that.

01:12:22.191 --> 01:12:23.751
 You can't do that because we're sovereign.

01:12:23.871 --> 01:12:30.911
 Our sovereign right across the world includes the right to shoot children in the back of the head anywhere, anytime for any reason.

01:12:30.911 --> 01:12:51.251
 It's much worse than that, because what they're saying is we reserve the right to use the financial system all around the world and to involve other countries and businesses all around the world to sanction you when we're not a party to your treaty or your activities and your activities aren't in our country.

01:12:51.551 --> 01:12:52.071
 Right.

01:12:52.071 --> 01:13:02.691
 And so we are involving allies and financial institutions in instituting enforcement against something where we have no rights.

01:13:03.591 --> 01:13:04.071
 Right.

01:13:04.731 --> 01:13:08.451
 And we're taking advantage of the system of world reserve currency.

01:13:08.671 --> 01:13:21.231
 Our status is the world reserve currency, which was achieved through Bretton Woods, which is the international coalition, to then turn around and use it against people who were trying to defend themselves against genocidal killers.

01:13:21.491 --> 01:13:24.591
 Okay, but let's come back to the customer, right?

01:13:25.511 --> 01:13:26.111
 The customer.

01:13:26.531 --> 01:13:27.071
 The customer.

01:13:27.071 --> 01:13:44.231
 The lead story in The Economist this week, Bellwether Economist, is payment systems, countries all around the world are creating alternative payment systems or building up their payment systems so they do not have to go through the American payment systems.

01:13:44.811 --> 01:13:47.551
 And this is seriously cutting into Visa's business now.

01:13:48.091 --> 01:13:53.711
 And they tell the story of a Brazilian payment system, which Brazil is now promoting, over Visa.

01:13:53.711 --> 01:13:54.391
 Okay?

01:13:54.391 --> 01:14:17.951
 The more you use your power through the financial system to control and manipulate and play these games, on behalf of a country that is now, by one of its most enthusiastic supporters, a pariah all around the world, the more the world will pull out of your systems.

01:14:18.411 --> 01:14:22.891
 And our channel is only good, as good as the many who flow through it.

01:14:22.891 --> 01:14:29.831
 If everybody leaves our channel, you've got nothing to sanction, because nobody's going through your channel.

01:14:30.331 --> 01:14:32.131
 Right, right, right.

01:14:34.631 --> 01:14:41.291
 But let's see who this act of sovereignty by the U.S. State Department has really intended to benefit.

01:14:41.391 --> 01:14:41.911
 It's Israel.

01:14:42.851 --> 01:14:43.511
 Here's a reminder.

01:14:43.651 --> 01:14:46.871
 Israel continues to shoot children in the head during the Gaza ceasefire.

01:14:47.011 --> 01:14:49.011
 So the ceasefire, they're shooting—listen to this.

01:14:49.671 --> 01:14:57.811
 This guy, a 32-year-old dad, goes out with his three-year-old son to check on their home in central Gaza about 5 p.m. on June 14th.

01:14:58.331 --> 01:15:00.631
 The area appeared safe and deserted.

01:15:00.811 --> 01:15:03.911
 He said there were no visible soldiers, no gunfire going on, no drones.

01:15:05.091 --> 01:15:07.411
 Israeli soldiers, though, emerged from a nearby building.

01:15:07.951 --> 01:15:11.591
 My son was crying in my arms and crying intensely from fear, he said.

01:15:12.131 --> 01:15:18.331
 Two shots were fired in his direction, but didn't hit him or his son, so he stopped out of fear for his life.

01:15:18.871 --> 01:15:22.211
 After I stopped, one of the soldiers knelt down and fired directly at my son.

01:15:22.691 --> 01:15:25.531
 The bullet entered the back of his head and exited to his left eye.

01:15:26.511 --> 01:15:29.011
 Moments later, this guy's own leg was shot.

01:15:29.811 --> 01:15:37.291
 He attempted to call an ambulance using his mobile phone, but the soldiers confiscated it and prevented him from seeking medical attention.

01:15:37.951 --> 01:15:39.571
 His left leg had been nearly severed.

01:15:39.571 --> 01:15:43.071
 He recalled hearing soldiers discussing whether his leg should be amputated.

01:15:44.251 --> 01:15:49.031
 Then the soldiers put his son's body in a plastic bag and handed it back to him.

01:15:49.791 --> 01:15:54.331
 That's what the jurisdiction—that's what America's sovereignty is to Rubio.

01:15:54.831 --> 01:15:56.971
 We can't stop Israeli soldiers from doing that.

01:15:57.071 --> 01:15:59.731
 I mean, it's illegal to prosecute people like that.

01:16:00.891 --> 01:16:02.751
 John, I think you're being totally unreasonable.

01:16:03.371 --> 01:16:06.631
 The Trump family can't build the hotel there until the people are gone.

01:16:07.291 --> 01:16:07.571
 Right.

01:16:08.191 --> 01:16:08.531
 Okay?

01:16:08.651 --> 01:16:08.851
 Right.

01:16:09.271 --> 01:16:10.111
 Yeah, right.

01:16:10.791 --> 01:16:13.611
 Anyway, that's what that State Department is really up to.

01:16:14.351 --> 01:16:15.931
 The U.S. is just out of control now.

01:16:17.011 --> 01:16:17.811
 Rubio in particular.

01:16:17.811 --> 01:16:21.991
 And I think Rubio's an odds-on leader to become next president, is he not?

01:16:22.571 --> 01:16:23.391
 I don't think so.

01:16:23.931 --> 01:16:24.171
 No?

01:16:24.231 --> 01:16:24.831
 You think of Vance?

01:16:25.511 --> 01:16:29.851
 Well, if you just look at the polls, Vance is significantly ahead of Rubio.

01:16:30.371 --> 01:16:30.771
 Okay.

01:16:31.191 --> 01:16:31.971
 You look at the polls.

01:16:32.431 --> 01:16:33.031
 Hold that thought.

01:16:33.031 --> 01:16:36.591
 Neither of them have, I would say, a significant position.

01:16:37.931 --> 01:16:38.731
 Let's put it this way.

01:16:39.751 --> 01:16:43.411
 Rubio's gunning for the job with that nonsense from the State Department.

01:16:44.151 --> 01:16:45.331
 He's like, I'm better at Vance.

01:16:46.071 --> 01:16:50.691
 You know, I want the right, the worldwide right, to kill anyone, anywhere, anytime for any reason.

01:16:51.131 --> 01:16:53.411
 And we'll kill anybody who stands in our way of doing that.

01:16:53.631 --> 01:16:57.611
 Yeah, but that behavior's not going to get him to the presidency.

01:16:58.371 --> 01:17:02.291
 Yeah, well, it'll get him to Miriam Adelson's.

01:17:02.831 --> 01:17:03.831
 Yeah, it'll get him money.

01:17:04.191 --> 01:17:05.031
 It'll get him a lot of money.

01:17:05.031 --> 01:17:05.711
 It'll get him money, yeah.

01:17:05.771 --> 01:17:06.371
 It'll get him money.

01:17:07.131 --> 01:17:09.911
 Okay, let's turn to Hey Robot this week.

01:17:09.911 --> 01:17:14.831
 A month ago, we were in Cheyenne, Wyoming with this story, the data center.

01:17:15.631 --> 01:17:21.751
 And just to scroll to the end of that story, data centers were saying that

01:17:21.751 --> 01:17:28.291
 they were having a problem with data centers.

01:17:28.631 --> 01:17:30.311
 What was the quote I was looking for?

01:17:31.071 --> 01:17:32.071
 It was a contentious item.

01:17:32.251 --> 01:17:34.671
 Data centers were contentious and they were going through growing pains.

01:17:34.751 --> 01:17:38.751
 We're back in Wyoming this week with Hageman, the representative there.

01:17:38.751 --> 01:17:42.671
 Demands answers from Zuckerberg about Cheyenne data center contamination.

01:17:44.091 --> 01:17:44.391
 Uh-oh.

01:17:45.331 --> 01:17:49.631
 Water contamination, a wastewater contamination incident in Cheyenne

01:17:49.631 --> 01:17:55.391
 caused the city's reuse system, so that's a recycling system, to shut down for months.

01:17:56.351 --> 01:18:00.551
 The board in Cheyenne on July 2nd identified the source of the initial contamination

01:18:00.551 --> 01:18:06.691
 as GOAT Systems LLC, a meta data center company in a development known as Project Cosmo.

01:18:07.171 --> 01:18:12.551
 The public announcement about the contamination came more than four months after the meta contractor,

01:18:12.551 --> 01:18:16.891
 which is building an $800 million data center in South Cheyenne,

01:18:16.891 --> 01:18:24.351
 disrupted the city's reclaimed water system, wastewater system, with a rare bacterial contaminant.

01:18:24.431 --> 01:18:30.691
 The board had revoked GOAT Systems' industrial discharge privileges for fill and flush operations,

01:18:30.891 --> 01:18:34.071
 and Cheyenne's reuse water system was taken offline.

01:18:35.491 --> 01:18:39.931
 So Hageman, the representative, poses these five questions to Zuckerberg.

01:18:41.191 --> 01:18:46.311
 You know, how did the contamination happen, what companies are involved, and so on?

01:18:47.391 --> 01:18:48.331
 She wants him to answer.

01:18:48.331 --> 01:18:53.951
 After Cheyenne City Councilman Pete Laburn told Cowboy State Daily last week upon learning

01:18:53.951 --> 01:18:59.151
 about the contamination that originated from Meta's data center, it was unwelcome news.

01:18:59.151 --> 01:19:02.551
 It is a very, very unpleasant surprise.

01:19:02.551 --> 01:19:04.311
 He says, "I have yet a lot to learn.

01:19:04.311 --> 01:19:05.891
 It definitely complicates matters."

01:19:07.671 --> 01:19:08.651
 Cheyenne's not getting it.

01:19:10.051 --> 01:19:13.931
 Like, these data centers are bad news.

01:19:13.931 --> 01:19:15.871
 They're contaminating your water system, and you're just like,

01:19:15.871 --> 01:19:18.151
 "Boy, this is really, really complicated."

01:19:18.151 --> 01:19:19.151
 It's not complicated.

01:19:22.151 --> 01:19:25.831
 I keep hearing Michael Jackson singing, "They don't care about us" in the background.

01:19:27.951 --> 01:19:29.951
 You can't do business with thieves.

01:19:30.531 --> 01:19:31.031
 No.

01:19:31.611 --> 01:19:31.951
 No.

01:19:32.531 --> 01:19:33.031
 Right.

01:19:34.371 --> 01:19:37.171
 You need to do business with people who are competent and ethical.

01:19:37.711 --> 01:19:41.791
 I wonder about Hageman, though, because these questions she asked, the one question I don't

01:19:41.791 --> 01:19:47.551
 see is, or the one note I see is, I want answers to these questions, Zuckerberg, within two weeks.

01:19:48.271 --> 01:19:53.871
 So, Hageman has been really good in Congress on the issues where I deal with, and she's been tough.

01:19:54.431 --> 01:20:01.311
 So, I can't say about this, but she's running for Senate, so she's got a reason to be tough.

01:20:03.391 --> 01:20:04.831
 That's a red flag to me, though.

01:20:04.831 --> 01:20:10.271
 Because when you ask somebody a question and you're a public official like that, you've got to put a

01:20:10.271 --> 01:20:14.351
 timeline on them, or otherwise, they're just going to never, they're not going to answer.

01:20:14.351 --> 01:20:15.231
 I've got to get back to you.

01:20:16.031 --> 01:20:18.111
 Well, but did you read her whole letter?

01:20:18.111 --> 01:20:20.031
 Did she put a timeline on it?

01:20:21.151 --> 01:20:22.351
 I did not read the whole letter.

01:20:23.231 --> 01:20:30.511
 I mean, the letters in the article, the way they will do it is, you know, they will step it.

01:20:30.511 --> 01:20:34.671
 They'll do something, then they'll escalate, then they'll escalate, then they'll escalate,

01:20:34.671 --> 01:20:36.191
 then they'll come down hard.

01:20:36.191 --> 01:20:41.711
 Because in politics, if you can show that you were, you know, gave them every opportunity,

01:20:42.271 --> 01:20:46.191
 and were patient, then when you lower the boom, you get a lot more done.

01:20:46.751 --> 01:20:54.111
 Yeah, I don't see it in that, maybe, to me, you always ask that's one of the first

01:20:54.111 --> 01:20:57.551
 things you look for, is is there a timeline to answer the question?

01:20:58.111 --> 01:21:01.391
 Right, right, I didn't read the whole letter, so I don't know.

01:21:02.271 --> 01:21:03.311
 Yeah, you've got to do that.

01:21:03.311 --> 01:21:05.471
 All I'll tell you is, Hegeman's one of the tougher ones.

01:21:05.951 --> 01:21:12.191
 Let me, let me, let me back up. I've covered the DOJ, and a lot of Wall Street fraud,

01:21:12.991 --> 01:21:14.751
 a lot of Senate hearings, a lot of House hearings.

01:21:15.711 --> 01:21:19.391
 Whenever that question is missing, you're staring at theater.

01:21:19.391 --> 01:21:20.031
 Right.

01:21:20.031 --> 01:21:24.031
 It's just, it's just a circus. You're just watching, you're watching a circus.

01:21:24.031 --> 01:21:24.031
 Right.

01:21:24.031 --> 01:21:27.151
 If it's real, they have a timeline. They're like, answer the question,

01:21:27.151 --> 01:21:30.671
 or you're getting a subpoena, answer the question, or we're shutting down your data center.

01:21:30.671 --> 01:21:34.271
 How about that? How about we just cut the power to your data center, Zuckerberg?

01:21:35.711 --> 01:21:36.511
 Can they do that?

01:21:38.031 --> 01:21:38.431
 Why not?

01:21:39.551 --> 01:21:41.631
 I don't know. I don't know who wants the power.

01:21:42.831 --> 01:21:45.231
 I mean, you could, you could, you threaten it.

01:21:45.231 --> 01:21:47.311
 Like, we'll get it, we'll get a temporary restraining order,

01:21:47.311 --> 01:21:49.871
 and we'll shut down your power center, your data center.

01:21:49.871 --> 01:21:51.311
 Right, right.

01:21:51.311 --> 01:21:52.511
 Answer the question.

01:21:52.511 --> 01:21:56.111
 You got two weeks to answer the questions, or we're shutting your data center down.

01:21:56.111 --> 01:21:56.431
 Mark?

01:21:56.431 --> 01:21:56.671
 Right.

01:21:56.671 --> 01:21:57.871
 What's it going to be?

01:22:00.271 --> 01:22:01.871
 Yeah, that's a great deal.

01:22:01.871 --> 01:22:03.871
 I mean, if you're serious, that's what you do.

01:22:04.351 --> 01:22:04.671
 Yep.

01:22:04.671 --> 01:22:07.951
 You don't just throw questions out there like, well, why I'm really tough.

01:22:09.951 --> 01:22:10.991
 Anyway, I'm skeptical.

01:22:10.991 --> 01:22:11.631
 I don't know.

01:22:11.631 --> 01:22:12.911
 I don't know the politics.

01:22:13.551 --> 01:22:18.511
 You know, in a situation like that, I don't know what the politics are between the,

01:22:18.511 --> 01:22:20.511
 between Hegman and the local guys.

01:22:21.151 --> 01:22:23.471
 And I don't know if they're working together or not.

01:22:23.471 --> 01:22:24.111
 So yeah.

01:22:24.991 --> 01:22:28.671
 If you're not working together, then you've got to be careful and you've got to sneak up on them.

01:22:28.671 --> 01:22:28.831
 So.

01:22:30.511 --> 01:22:30.751
 Yeah.

01:22:30.751 --> 01:22:31.711
 It's strange though.

01:22:31.711 --> 01:22:36.031
 Cheyenne, as we saw a month ago, is not a big, it's like 60,000 people as I saw.

01:22:36.031 --> 01:22:38.031
 And it's back in the news already with Zuckerberg.

01:22:40.191 --> 01:22:42.111
 Anyway, it's on the radar.

01:22:42.111 --> 01:22:43.391
 So let me say it this way.

01:22:44.271 --> 01:22:51.311
 When you are acting to hold a company like Meta or someone like Zuckerberg accountable,

01:22:52.511 --> 01:22:58.111
 what you find is that if you act, and I've been in this situation many times,

01:22:59.391 --> 01:23:00.511
 you will see it through.

01:23:01.231 --> 01:23:06.751
 But most of the people around you have a leash on them and their leash gets jacked

01:23:06.751 --> 01:23:08.351
 and they pull the rug out from under you.

01:23:08.351 --> 01:23:08.831
 Yeah.

01:23:08.831 --> 01:23:14.111
 And so whatever you do, you've got to make sure that you do it in a way they can't pull

01:23:14.111 --> 01:23:15.551
 the rug out from under you.

01:23:15.551 --> 01:23:21.071
 And that causes you to be much more step-by-step-by-step-by-step and much more careful.

01:23:22.271 --> 01:23:22.511
 Yeah.

01:23:22.511 --> 01:23:23.071
 So.

01:23:23.071 --> 01:23:24.031
 Right, right.

01:23:26.591 --> 01:23:28.191
 Let's turn to AI.

01:23:29.231 --> 01:23:29.631
 Why?

01:23:29.631 --> 01:23:30.831
 This next story.

01:23:30.831 --> 01:23:32.431
 This next story is kind of a double whammy.

01:23:32.431 --> 01:23:33.151
 It's interesting.

01:23:33.711 --> 01:23:36.111
 It's an AI web and we're just rats in the walls.

01:23:37.391 --> 01:23:39.231
 First interesting item is this.

01:23:39.231 --> 01:23:44.511
 CloudFare's public radar bot versus human tracker is reporting that bots

01:23:45.471 --> 01:23:55.471
 now account for roughly 57% to 58% of HTTP requests for web content compared with about 42% to 43% for humans.

01:23:56.431 --> 01:24:06.511
 Meanwhile, another bot report based on 2025 data puts bots at 53% of measured web traffic for the second year in a row with humans at 47%.

01:24:06.511 --> 01:24:08.431
 So bots are now the majority of web traffic.

01:24:09.311 --> 01:24:09.551
 Right.

01:24:09.551 --> 01:24:13.951
 So they're also the majority of the content creation at some point.

01:24:13.951 --> 01:24:14.511
 We'll get to that.

01:24:14.511 --> 01:24:14.831
 Right.

01:24:14.831 --> 01:24:16.031
 That's the next part.

01:24:16.031 --> 01:24:16.591
 Right.

01:24:16.591 --> 01:24:23.551
 So their bots are most of the, which is consistent with what I've seen on my YouTube viewer figures.

01:24:24.671 --> 01:24:27.391
 It's like they're coming down because I'm not getting the bots.

01:24:27.391 --> 01:24:32.911
 The preferred YouTube providers, the guys who shoot in a kennel that's four feet wide, three feet tall and two feet deep.

01:24:33.711 --> 01:24:34.751
 The bots love them.

01:24:34.751 --> 01:24:40.671
 They just don't like a guy shooting, you know, in the captain's quarters of the Queen Anne's Revenge 20 feet wide.

01:24:40.671 --> 01:24:41.311
 They hate that.

01:24:41.871 --> 01:24:44.431
 But back to this, you mentioned the content.

01:24:45.151 --> 01:24:52.751
 Separately, according to Pangram, an AI detection company, a website such as LinkedIn, Medium, Twitter, and Reddit,

01:24:52.751 --> 01:24:57.551
 about one in four long form items were fully AI generated.

01:24:57.551 --> 01:24:59.471
 The content was AI generated.

01:25:00.031 --> 01:25:07.151
 And get this, LinkedIn was the most saturated, AI saturated platform where more than 40% of long form posts

01:25:08.111 --> 01:25:10.751
 were flagged as fully AI generated.

01:25:10.751 --> 01:25:11.071
 Wow.

01:25:12.031 --> 01:25:17.071
 If we included mixed AI and human content, ex-Twitter was worse off.

01:25:17.871 --> 01:25:25.791
 Almost half of ex-articles were either fully AI generated, 24%, or AI assisted, 23%, with only

01:25:26.511 --> 01:25:30.591
 53.2% of ex-articles flagging as human authored.

01:25:32.351 --> 01:25:33.231
 Unbelievable.

01:25:34.191 --> 01:25:37.951
 Then the third prong of this is AI is, it's just bogus.

01:25:37.951 --> 01:25:39.791
 It's complete garbage.

01:25:39.791 --> 01:25:40.351
 Look at this.

01:25:41.071 --> 01:25:42.991
 AI isn't actually writing anything.

01:25:42.991 --> 01:25:46.431
 It's really a copy and paste scam on a massive scale.

01:25:46.431 --> 01:25:49.951
 Open AI and other AI powers claim it's not so.

01:25:49.951 --> 01:25:50.831
 No, no, it's original.

01:25:50.831 --> 01:25:51.791
 It's really thinking.

01:25:51.791 --> 01:25:57.631
 However, a recent court filing by the New York Times and others alleges that Vincent Monaco,

01:25:58.271 --> 01:26:03.551
 who leads privacy engineering at Open AI, acknowledged in a deposition that, quote,

01:26:04.191 --> 01:26:10.831
 Open AI had searched training data sets and output data, despite the company's initial claims that

01:26:10.831 --> 01:26:12.271
 it couldn't access that data.

01:26:12.831 --> 01:26:18.191
 The outlets also alleged that Open AI deleted logs of violation of the court's preservation orders.

01:26:18.191 --> 01:26:23.071
 So they're copying the content, and they're lying about it, and they're destroying evidence to hide

01:26:23.071 --> 01:26:26.911
 their criminal content, their criminal theft of this content.

01:26:26.911 --> 01:26:27.951
 This is unbelievable.

01:26:27.951 --> 01:26:34.191
 So one of the things I will say, right now, the best search engine I use is AI.

01:26:34.911 --> 01:26:38.511
 It's a good, I shouldn't say it's a good search engine.

01:26:38.511 --> 01:26:42.111
 It's a better search engine than the available search engines, okay?

01:26:42.831 --> 01:26:47.311
 But one, it can't possibly be economic.

01:26:47.311 --> 01:26:49.471
 Right now it's being massively subsidized, right?

01:26:50.111 --> 01:26:50.511
 Yeah.

01:26:50.511 --> 01:26:54.511
 So one of the reasons it's a good search engine is it reflects massive subsidy.

01:26:54.511 --> 01:27:00.191
 But the second thing is, as the original content disappears with AI, you know, and it's replaced

01:27:00.191 --> 01:27:09.791
 by AI slop, it's searching a world where you are getting a serious decay in the ecosystem, right?

01:27:09.791 --> 01:27:10.511
 And so at some point…

01:27:10.511 --> 01:27:14.031
 In other words, AI becomes less and less reliable

01:27:14.031 --> 01:27:17.231
 because it's relying more and more and more on just garbage.

01:27:17.231 --> 01:27:18.511
 Right, right.

01:27:18.511 --> 01:27:24.271
 And so now here's the thing, because I focus on research in the financial area

01:27:24.271 --> 01:27:28.911
 and you are pulling from something like the SEC documents and stuff like that,

01:27:30.351 --> 01:27:33.231
 and you're dealing with math, it can be very, very useful.

01:27:33.791 --> 01:27:33.791
 Right.

01:27:33.791 --> 01:27:35.711
 You know, but in an area…

01:27:35.711 --> 01:27:42.271
 I mean, if you want to have a really good laugh, ask AI about vaccines.

01:27:45.871 --> 01:27:46.671
 It's totally…

01:27:46.671 --> 01:27:48.591
 I'm sure they're wonderful.

01:27:48.591 --> 01:27:49.231
 It's just…

01:27:49.231 --> 01:27:52.751
 No, it's just, you know, it's just unbelievable.

01:27:52.751 --> 01:27:57.631
 Even if you try and ask it about the facts, but it can't, you know, it's just hopeless.

01:27:57.631 --> 01:28:00.911
 So you really have to have a very good map.

01:28:00.911 --> 01:28:04.991
 If you're going to use it, you have to have a very good map of how the world works.

01:28:04.991 --> 01:28:06.351
 And if you don't, you're just…

01:28:08.031 --> 01:28:08.671
 Yeah.

01:28:08.671 --> 01:28:09.311
 Your toes.

01:28:09.311 --> 01:28:13.551
 Let's go back to the article because it goes right to your point about the less and less

01:28:13.551 --> 01:28:16.911
 reliable nature of AI and adds an interesting kicker.

01:28:16.911 --> 01:28:17.471
 Look at this.

01:28:18.271 --> 01:28:21.871
 When AI tells you something about Linux, for example, it's not just quoting

01:28:23.071 --> 01:28:25.631
 Linux kernel mailing list or Linux weekly news.

01:28:25.631 --> 01:28:31.711
 It's also pulling data from I'm a moron, a poster from a deservedly obscure subreddit.

01:28:32.351 --> 01:28:34.191
 AI isn't intelligent at all.

01:28:34.831 --> 01:28:38.111
 It's just a copy and paste of words that are likely to go together.

01:28:38.111 --> 01:28:40.511
 It may sound right, but it often isn't.

01:28:40.511 --> 01:28:42.351
 The reason it works is confidence.

01:28:42.911 --> 01:28:46.431
 It's why so many buy AI garbage is gospel truth.

01:28:46.431 --> 01:28:47.871
 Because it's presented with confidence.

01:28:47.871 --> 01:28:49.791
 But this guy says you can't really trust it.

01:28:50.431 --> 01:28:50.591
 Right.

01:28:50.591 --> 01:28:50.991
 Exactly.

01:28:51.631 --> 01:28:52.031
 Exactly.

01:28:52.031 --> 01:28:53.391
 You've got to double and triple check it.

01:28:54.111 --> 01:28:54.591
 Right.

01:28:54.591 --> 01:28:55.791
 Although I will say this.

01:28:55.791 --> 01:29:02.671
 If you're in certain function, in certain areas of research, if you, what we do is if we use it,

01:29:02.671 --> 01:29:06.351
 we have a researcher check it and then we check back again.

01:29:06.351 --> 01:29:07.631
 And we go back and forth.

01:29:08.111 --> 01:29:12.511
 And as long as you have a really good human researcher, they can go faster.

01:29:13.071 --> 01:29:14.031
 That is true.

01:29:14.031 --> 01:29:17.631
 Because it's such a great, it's great at processing and aggregating.

01:29:17.631 --> 01:29:20.911
 But you need a really great, if you have somebody like Cori Lynn.

01:29:20.911 --> 01:29:23.231
 Cori Lynn is a magnificent researcher.

01:29:24.191 --> 01:29:28.911
 And if you have somebody like her, and part of it is not just that it's causing a pace.

01:29:28.911 --> 01:29:30.591
 It doesn't have context.

01:29:30.591 --> 01:29:34.031
 And if you don't have context, you just get a mess.

01:29:34.031 --> 01:29:34.351
 Right.

01:29:34.351 --> 01:29:35.231
 It doesn't have context.

01:29:35.231 --> 01:29:36.671
 It doesn't have common sense.

01:29:36.671 --> 01:29:36.911
 Right.

01:29:37.391 --> 01:29:37.631
 Right.

01:29:38.751 --> 01:29:39.231
 Okay.

01:29:39.231 --> 01:29:40.191
 Let's keep it going.

01:29:40.191 --> 01:29:44.911
 And hey, Robot, this next story, this is the idea of the criminal mindset, really.

01:29:44.911 --> 01:29:49.951
 This permit, common for dry cleaners, is now being used to build AI power plants.

01:29:50.511 --> 01:29:50.911
 Okay.

01:29:50.911 --> 01:29:53.391
 So you have this woman, Omyra Garcia.

01:29:53.391 --> 01:29:58.111
 She didn't realize her life on a small ranch in Abilene, Texas, was about to change forever.

01:29:59.071 --> 01:30:03.951
 Until clouds of dust, kicked up by a mysterious project next door, began to engulf her home.

01:30:04.671 --> 01:30:09.151
 She's an Air Force veteran, and she found out about OpenAI's plans to build its flagship

01:30:09.151 --> 01:30:15.951
 Stargate data center directly next to her property, only after construction began in the summer of 2024.

01:30:17.391 --> 01:30:21.071
 Meanwhile, President Trump is fast-tracking AI development across the country,

01:30:21.071 --> 01:30:25.151
 and has found a willing ally in Texas Governor Greg Abbott,

01:30:25.151 --> 01:30:29.711
 who had previously referred to the industry as the state's gold rush,

01:30:29.711 --> 01:30:33.791
 though his enthusiasm has recently dampened in the face of widespread opposition.

01:30:34.431 --> 01:30:39.151
 With some 300 data centers already in operation and 200 more in development,

01:30:39.151 --> 01:30:45.071
 Texas is on the path to surpass Virginia as the nation's leading data center market by 2030.

01:30:45.631 --> 01:30:45.871
 Okay.

01:30:45.871 --> 01:30:47.471
 What's going on with the licenses, though?

01:30:48.111 --> 01:30:53.071
 Typically, before you can build a major source of new emissions, you have to get a major air permit,

01:30:53.071 --> 01:30:57.471
 which includes extensive environmental reviews and engagement with local community.

01:30:58.111 --> 01:31:03.871
 But in Texas, regulators have allowed some data centers like Stargate to avoid that process by first

01:31:03.871 --> 01:31:10.271
 obtaining a so-called minor air permit. It's more commonly associated with dry cleaners and auto body

01:31:10.271 --> 01:31:16.191
 shops and rubber stamp with minimal review. Why do they rubber stamp them? Well, here's why.

01:31:16.191 --> 01:31:21.391
 Those lower-level permits get granted very quickly and often without the public knowing,

01:31:21.391 --> 01:31:27.391
 said Catherine Guerrero, who spent nearly four years at the Texas Commission on Environmental Quality

01:31:27.391 --> 01:31:33.631
 before joining the Watchdog Group Public Citizen. And the reason they're granted is you're doing something,

01:31:33.631 --> 01:31:42.031
 those other projects, here you go, for small things that happen a lot. So the dry cleaners and the gas

01:31:42.031 --> 01:31:46.831
 stations, those are small things that happen a lot. That's why they get those permits. They're sort of

01:31:46.831 --> 01:31:51.631
 quick and easy. So they don't have to waste their time reinventing the wheel for stuff that's done over

01:31:51.631 --> 01:31:56.431
 and over the same way. But Stargate isn't common stuff, he said. Under the minor permit,

01:31:56.431 --> 01:32:02.831
 Stargate's fleet of 10 turbines and 62 backup diesel generators are currently allowed to emit

01:32:02.831 --> 01:32:09.391
 more than 1.6 million tons of greenhouse gases and a thousand tons of combined harmful air pollutants

01:32:09.391 --> 01:32:14.831
 every year. Despite the permits being for continuous use, Stargate's developer, Crusoe,

01:32:15.391 --> 01:32:20.991
 told Floodlight that the turbines will only be used for backup power. So you see what's going on here.

01:32:20.991 --> 01:32:27.471
 They're using these mom-and-shop-pop permits to allow enormous one-of-a-kind projects

01:32:28.831 --> 01:32:34.351
 to engulf this woman's home and fuse. We reserve the right to come into your community

01:32:34.991 --> 01:32:42.591
 and destroy the value of your property. And you have no opportunity to consent or not,

01:32:42.591 --> 01:32:49.711
 you have no opportunity to be reimbursed or not. This is a form of eminent domain. We're taking your

01:32:49.711 --> 01:32:55.231
 property. Great point. Yes, it is. We're taking your property without any compensation. And you know

01:32:55.231 --> 01:33:02.111
 something, we say we can get away with it, so to hell with you. Right. Right. Right. And notice the

01:33:02.111 --> 01:33:06.511
 element in that story where she's like, she didn't even know what was going on until construction had started.

01:33:06.511 --> 01:33:15.551
 Right. That's astonishing. Yeah, it is. So one of the things Elsa von Hamlin said in her piece,

01:33:16.191 --> 01:33:21.871
 Mr. Global in Your Street, is he said, if you don't have a community paper left, and most places don't,

01:33:22.431 --> 01:33:28.111
 everybody get together, chip in 10 bucks a month, and you pay somebody to go to all those meetings, go to the

01:33:28.911 --> 01:33:34.431
 planning meetings, go to the city council meeting, track what's going on and letting you know.

01:33:34.431 --> 01:33:38.911
 It's a great investment. Yeah, it is a really good investment.

01:33:42.031 --> 01:33:47.231
 One more story in Hey Robot. I've been on this, you know, I've been banging the drum on gambling and

01:33:47.231 --> 01:33:53.631
 Kalshi and Polymarket in these. I'm on to something here. Listen to this next, this is a video I'm going to run.

01:33:55.071 --> 01:33:59.231
 Guess, you're never going to guess who's behind these markets. Oh, I know who's behind it.

01:33:59.231 --> 01:34:05.631
 Okay. It's always them. It's always, whenever you go back, it's always goes back to the same place.

01:34:05.631 --> 01:34:11.391
 That's been my whole life that way. Guess who brought you the epidemic of gambling in the US?

01:34:11.391 --> 01:34:18.831
 You'll never guess. here we go. Yeah, I think you're going to make money on poly. Oh, sorry.

01:34:19.871 --> 01:34:23.951
 If you think you're going to make money on Polymarket, think again. If you don't know,

01:34:23.951 --> 01:34:29.311
 it's an app that allows you to bet on anything from sports to how many times Elon Musk will tweet

01:34:29.311 --> 01:34:34.431
 in the next 24 hours or when will the next bomb drop on Iran? Now, let me give you some numbers.

01:34:34.431 --> 01:34:42.031
 Less than 0.04% of users account for more than 70% of the profit. And it's not regulated,

01:34:42.031 --> 01:34:47.311
 which means that the average user is fighting against insider trading. For example, Sergeant

01:34:47.311 --> 01:34:53.071
 Ken Van Dyke had prior knowledge about the operation to capture Maduro. He put 30,000 on it

01:34:53.071 --> 01:34:59.151
 and made over 400,000 in profit. But it goes much deeper than that. It looks a lot like a rebranded

01:34:59.151 --> 01:35:05.711
 version of a DARPA program called Policy Analysis Market that got shut down in 2003. And the real goal

01:35:05.711 --> 01:35:11.711
 is to use and manipulate the betting markets to predict and shape government policy with the added bonus of

01:35:11.711 --> 01:35:17.311
 taking away our savings. By the way, they're backed by Peter Thiel. Data, surveillance, predicting the future.

01:35:17.311 --> 01:35:22.031
 If you're on the app, that's who you're empowering. And they specifically target young men and women.

01:35:22.031 --> 01:35:27.391
 The Wall Street Journal found out that they've paid creators to stage millions in fake bets just to

01:35:27.391 --> 01:35:34.191
 sign up more people. So let's recap. Only 0.04% of users are the real winners. Many with insider

01:35:34.191 --> 01:35:39.791
 information. It gives the government more control over us. It empties our wallets and uses deceptive

01:35:39.791 --> 01:35:44.511
 marketing. What's happening here? These apps shouldn't be regulated. They should be outlawed.

01:35:44.511 --> 01:35:49.871
 They bring no value to society. And if I had to predict the future, I'd sum it up in three letters.

01:35:49.871 --> 01:35:55.231
 Bingo. Brought to you by DARPA.

01:35:55.231 --> 01:36:02.271
 So, if you read Addiction by Design, you just can't believe half of gambling is legal.

01:36:02.911 --> 01:36:09.871
 Because they have engineered it to chemically produce dopamine. You just can't believe it's legal.

01:36:09.871 --> 01:36:15.231
 Oh, yeah, yeah. No, I know. I mean, I read books. I read books. I was, you know...

01:36:15.231 --> 01:36:20.511
 When I played horses a lot, I read quite a bit on it. It was like pretty eye-opening stuff.

01:36:20.511 --> 01:36:21.071
 Yep.

01:36:21.071 --> 01:36:29.391
 And I always stayed away from the books, the sports, the, like, if you're betting, I would

01:36:29.391 --> 01:36:31.711
 never bet on a football game.

01:36:31.711 --> 01:36:32.271
 Right.

01:36:32.271 --> 01:36:35.631
 Or a baseball game. Because that's you versus the book. Whereas horse racing is a little

01:36:35.631 --> 01:36:39.231
 difference. You, it's you versus the crowd of people watching the horse race.

01:36:40.671 --> 01:36:41.551
 So it's funny, I used to...

01:36:41.551 --> 01:36:43.391
 It's what's called parimutuel. It's different.

01:36:43.391 --> 01:36:47.071
 I used to hear insiders talk about how they were going to sabotage somebody.

01:36:47.711 --> 01:36:53.791
 You know, cause a divorce or they were going to, you know, get them, get them addicted on drugs

01:36:53.791 --> 01:36:59.151
 or whatever, you know. So when you hear people scheming about how to use these techniques to destroy

01:36:59.151 --> 01:37:07.871
 people, it gives you a very different view of, you know, if a doctor occasionally, when a doctor

01:37:07.871 --> 01:37:14.351
 said to me, you know, you should take this drug. I'm like, no, because I look at it from the,

01:37:14.351 --> 01:37:18.591
 you know, I look at it from the point of view of the covert of the spooky guys who are using it as

01:37:18.591 --> 01:37:20.591
 a weapon. So I've seen that.

01:37:20.591 --> 01:37:26.831
 Right. Exactly. That guy doesn't go quite far enough for my, it's like, yeah, it's not just

01:37:26.831 --> 01:37:31.071
 influence and policy. It's influencing, instantly seeing the very outcomes of those bets.

01:37:31.871 --> 01:37:36.751
 Right. Now he, that video, or at least the article that came from reference to,

01:37:36.751 --> 01:37:41.231
 paper on the whole history of DARPA written by a guy who used to work for DARPA.

01:37:41.231 --> 01:37:44.671
 Right. And we'll have that. We'll have that paper, by the way, in the show notes.

01:37:44.671 --> 01:37:47.471
 Yeah. It's very, it's a very interesting story.

01:37:47.471 --> 01:37:54.831
 Yeah. Yeah. Yeah. Okay. But that's it for a robot. Let's turn to, let's turn to pushback

01:37:54.831 --> 01:38:01.791
 and we get back to the theme. Don't spy on me. the public's not, not pleased with the flock cameras

01:38:01.791 --> 01:38:08.591
 and the spying. First story, police asked for tips on two, two suspects who destroyed a flock

01:38:08.591 --> 01:38:14.591
 camera. The internet instantly dubbed them Batman and Robin. That's not really what going on,

01:38:14.591 --> 01:38:20.031
 but we'll get into it. Hundreds of tips poured in after New Bern, North Carolina police asked the

01:38:20.031 --> 01:38:26.111
 public to identify two men who reportedly cut down a newly installed flock security camera.

01:38:26.111 --> 01:38:30.671
 The problem, the residents identified Batman and Robin, the Lone Ranger and Tonto

01:38:31.391 --> 01:38:37.471
 and enough fictional duos to fill a comic con panel. The mass trolling was funny. It was also

01:38:37.471 --> 01:38:43.471
 a signal flare about how communities are starting to push back against surveillance technology rolling

01:38:43.471 --> 01:38:49.391
 quietly into their neighborhoods. a national pattern emerges that's going across the country.

01:38:49.391 --> 01:38:55.151
 At least 25 flock cameras have been destroyed across five states since April of 2025. In Michigan,

01:38:55.151 --> 01:39:01.551
 suspects use cutting tools to sever camera posts. in Indiana cameras were completely chopped down.

01:39:02.351 --> 01:39:08.991
 And if you look here in the comments, the most popular comment was this, we need more heroes

01:39:08.991 --> 01:39:14.191
 like this, referring to the people cutting down the cameras. Yeah. People are displeased. People are like, this is

01:39:16.751 --> 01:39:23.631
 open rebellion. Yep. Yep. And I told you for the second quarter wrap up, Farrell and I,

01:39:23.631 --> 01:39:30.671
 we showed a video of a guy next to his pickup truck with his German Shepherd saying, here are the 10 things you

01:39:30.671 --> 01:39:39.311
 must never do related to flock cameras. Yeah. Then he goes, never point a laser, you know, and then he

01:39:39.311 --> 01:39:44.431
 describes the exact kind of laser. Never pointed this kind of laser. You never want to take a laser that emits

01:39:44.431 --> 01:39:50.191
 a wavelength between 400 nanometers and 480 nanometers, because that's green and that would destroy the

01:39:50.191 --> 01:39:55.551
 flock camera. And we don't want that. Right. Right. My favorite one is you don't want to teach the

01:39:55.551 --> 01:40:00.591
 homeless how much copper is in the flock cameras and how much could be sold for because then they

01:40:00.591 --> 01:40:05.951
 would harm the flock cameras. And you never want to do that. Right. Right. That was pretty funny.

01:40:05.951 --> 01:40:11.791
 I saw a video along those lines with a guy in a joker makeup and it was, it was hilarious. I was laughing.

01:40:12.911 --> 01:40:18.111
 Yeah. And it's sad too, because I think, you know, my, as I said, my feedback is the,

01:40:18.111 --> 01:40:23.631
 the sheriffs and law enforcement don't understand what the problem is here yet. I mean,

01:40:23.631 --> 01:40:29.071
 at some point they'll get educated, but you know, we need them on our side and they need to understand

01:40:29.071 --> 01:40:35.711
 how dangerous this stuff is. Yeah. the last item in pushback is actually an open source flock

01:40:35.711 --> 01:40:42.591
 database, which I'm going to cut to, this is a live demonstration here. you can see this is,

01:40:42.591 --> 01:40:47.711
 so we've been using this one a lot to go. This is deep deep flock.org. Yeah. Everybody

01:40:47.711 --> 01:40:52.751
 on Solari connect is going to look at all the, you know, where they are, where the flock cameras

01:40:52.751 --> 01:40:58.031
 are, where they are. So I'm going to click it. Look at this. Here's the map. You launch this map.

01:40:58.831 --> 01:41:03.391
 Hopefully my internet doesn't choke up on me here. It looks like it's, here you go.

01:41:04.271 --> 01:41:12.111
 So you, and you can just zoom in to wherever I'm going to zoom in on Northeast Indiana. Let's just go

01:41:12.111 --> 01:41:16.671
 back to my old. Let's look at your old haunt. Yeah. Back up here.

01:41:18.591 --> 01:41:21.551
 Merrillville. That's wrong side of the state.

01:41:24.831 --> 01:41:29.951
 Valpo. That's the wrong side of the state. I need to go. I can't, so there's no boundary. You

01:41:29.951 --> 01:41:33.391
 gotta, you gotta kind of play with it or play around with it.

01:41:37.471 --> 01:41:42.511
 South Bend. We're getting warmer. Middlebury. Ship Shawana. There we go. LaGrange. There we are.

01:41:43.551 --> 01:41:51.951
 Okay. Elmira. That's, this is where, this is where I was back up here. So there's flock cameras.

01:41:51.951 --> 01:41:58.831
 They look smart enough to keep them out. Well, this is surprising. Stroh. I used to go to a fish

01:41:58.831 --> 01:42:04.591
 place in Stroh, Indiana. That's a tiny little place. And even they've, that's, I'm sure what they're

01:42:04.591 --> 01:42:09.711
 showing there. I would, I would bet dollars to donuts that that's a dollar general.

01:42:10.911 --> 01:42:15.471
 Really? Right. Yeah. Right there in Stroh. I mean, I imagine anyway, but they're all

01:42:15.471 --> 01:42:19.631
 over the place. But the point of this map is you can see where they are in your community.

01:42:21.231 --> 01:42:24.191
 You know, they're all over the place. So that was started by an open source

01:42:24.191 --> 01:42:28.991
 software developer named Will Friedman. And it just grew and grew and grew and flock sued and

01:42:29.631 --> 01:42:35.471
 said it was, I think that it was a defamation case and he won. He said, no, this is, you know,

01:42:35.471 --> 01:42:40.831
 this is first amendment. Yeah. This is public information, public paying for it.

01:42:42.031 --> 01:42:46.671
 Yeah. It's a really, there's, there's, here's my old town. Look at this. This is,

01:42:46.671 --> 01:42:53.311
 this is Wolcottville. that's, I lived in Wolcottville. that's actually in the,

01:42:53.311 --> 01:42:57.711
 in the city proper. I was a little bit north. Anyway, you can zoom in anywhere you can see

01:42:58.271 --> 01:43:04.511
 digital country roads and see, are there flock cameras around? Right. Right. And if you're in

01:43:04.511 --> 01:43:09.711
 a community that's got a lot of flock cameras, so they're collecting a lot more than your license

01:43:09.711 --> 01:43:15.791
 plate. They're, they know where you are, what you're doing. And some of these ALPRs can now listen

01:43:15.791 --> 01:43:22.191
 to you know, track your devices, connect up with that data. Right. You know, this is a real

01:43:22.191 --> 01:43:28.991
 surveillance grid. Yeah, it really is. and you're right. I've seen, I think it was probably

01:43:28.991 --> 01:43:37.471
 on that d flock.org website that will be in the show notes that I saw. You're right. It's way more

01:43:37.471 --> 01:43:44.031
 than just a license plate. It's bumper stickers, make a model of the car, the color. I mean,

01:43:45.151 --> 01:43:52.031
 registration stickers. It's the whole, it's everything. Right. Well, if you look at how much data they

01:43:52.031 --> 01:43:57.951
 can get through the wifi, through your phone, through your car, through your TV, I mean,

01:43:57.951 --> 01:44:05.791
 we're in the Truman Show. We are in the Truman Show. Yeah. We're in the Truman Show. So I told you

01:44:05.791 --> 01:44:11.951
 when I had a very good sort of, contact with inside information who said, you know, they've

01:44:11.951 --> 01:44:20.431
 put video cameras in your home and are watching you 24/7. And I re I remember thinking, okay, how do I live

01:44:20.431 --> 01:44:26.991
 with that? Now, eventually I sold the house and got out of town cause they were using electromagnetic

01:44:26.991 --> 01:44:31.951
 weapons on us as well. So there's 24/7 surveillance and all this sort of, you know, and they were

01:44:31.951 --> 01:44:37.391
 breaking into the house. I mean, there was all this harassment and I went to church and the

01:44:37.391 --> 01:44:43.311
 pastor was sort of angry and worked up that day and was pointing at the audience and said, you know,

01:44:43.311 --> 01:44:47.231
 you worry about what other people think, but you need to start worrying about what God thinks about what

01:44:47.231 --> 01:44:52.431
 you're up to. Yeah. And I realized if I just worry about what, you know, God and me think of what I'm

01:44:52.431 --> 01:44:58.351
 up to, I don't need to worry about all that stuff. So. Yeah. Yeah. That's a sound piece of personal

01:44:58.351 --> 01:45:06.831
 advice. Right. Right. That's really the serenity prayer. Yeah. You know, yeah. Grant

01:45:06.831 --> 01:45:11.631
 me the serenity that, you know, you worry about yourself. Don't worry about things that are out of

01:45:11.631 --> 01:45:18.031
 your control. You just tie yourself up in knots. Do the best that you can be. I do think what I'm

01:45:18.031 --> 01:45:23.951
 seeing all over the world, you know, cause that's why I'm in the UK right now. I'm seeing people

01:45:23.951 --> 01:45:32.111
 begin to understand that identity, who owns your identity is important and who owns the data that's

01:45:32.111 --> 01:45:37.711
 generated by your identity and what are the rules about it. So it's what's called data sovereignty.

01:45:38.511 --> 01:45:44.111
 Data sovereignty is a major, major issue. And people are finally beginning to start thinking

01:45:44.111 --> 01:45:49.071
 about it. You know, it's a little bit like giving laser guns to cavemen. We had to play around and

01:45:49.071 --> 01:45:54.031
 shoot, kill each other before we realized, wait a minute, we need a set of rules for this new technology.

01:45:54.591 --> 01:46:01.311
 And we're going to see data sovereignty start to, you know, work its way up as an

01:46:01.311 --> 01:46:07.231
 important political and cultural issue. Yeah. It's a hot button issue now with these cameras.

01:46:07.231 --> 01:46:14.511
 Yep. Yeah. It struck a, it struck a real nerve, these cameras. Right. And that's good.

01:46:15.071 --> 01:46:19.951
 I mean, it is good people waking up no matter, you know, but I'll tell you something about people

01:46:19.951 --> 01:46:26.591
 waking up to something is you get some strange alliances when it happens. I remember the bailouts

01:46:26.591 --> 01:46:30.191
 will put one of those hot button issues, like you're bailing, you're bailing them out.

01:46:31.071 --> 01:46:36.031
 And suddenly you had people, you had people, you had libertarians uniting with people from the left,

01:46:36.671 --> 01:46:39.951
 like never before. And it scared the establishment.

01:46:39.951 --> 01:46:41.551
 Yeah, it did. It did.

01:46:41.551 --> 01:46:42.431
 They were scared.

01:46:42.431 --> 01:46:47.231
 Right. And that's why I keep telling everybody, you know, it's hilarious. We try and focus on the

01:46:47.231 --> 01:46:55.231
 issues that hurt everybody. And I keep saying it's 65,000 per person for everybody. Yeah.

01:46:55.231 --> 01:47:00.031
 And we, you know, I used to, when I first got to Hickory Valley, because it's a pretty segregated

01:47:00.031 --> 01:47:06.591
 world. And I used to say to people, can we just collaborate on the money? Because then we could

01:47:06.591 --> 01:47:11.231
 hate each other rich instead of hating each other poor. Right. Right.

01:47:11.231 --> 01:47:16.351
 So, it's fine. I reserve the right, I will, I will respect your right to hate each other any,

01:47:16.351 --> 01:47:20.591
 all day long. But by hating each other, we're letting them steal from us.

01:47:21.551 --> 01:47:23.231
 Yes. And that's going to stop.

01:47:23.231 --> 01:47:26.911
 By hating each other, we're letting them steal from us.

01:47:26.911 --> 01:47:28.191
 Mm-hmm.

01:47:28.191 --> 01:47:28.991
 Very well put.

01:47:28.991 --> 01:47:30.111
 Mm-hmm.

01:47:30.111 --> 01:47:32.511
 On that note, let's turn to our final chart.

01:47:33.071 --> 01:47:35.391
 There's another way they're stealing from us.

01:47:35.391 --> 01:47:41.551
 A backdoor chart of inflation. And that is Finviz year to date. Look at this. Look at our energy at

01:47:41.551 --> 01:47:41.951
 the top.

01:47:42.991 --> 01:47:48.111
 Well, you know, back to the, COVID 2.0, a great way to shut down all the little guys,

01:47:48.111 --> 01:47:53.951
 whether it's the farmers and small businesses, run the oil price up and the big companies can survive

01:47:53.951 --> 01:47:55.471
 it. But the little guys can't.

01:47:56.111 --> 01:48:03.231
 Yeah. Look at this. The smallest increase in oil is soybean oil year to date up over 50%.

01:48:04.431 --> 01:48:05.791
 From there, it only gets worse.

01:48:06.351 --> 01:48:08.911
 You know how many people you put out of business with this?

01:48:11.951 --> 01:48:14.831
 Yeah, a lot is the answer to that.

01:48:14.831 --> 01:48:16.591
 Yep. A lot.

01:48:16.591 --> 01:48:20.591
 I'm just, I'm scanning food too. And I'm not liking the one I see there either, but

01:48:20.591 --> 01:48:22.271
 it's not as bad as energy, that chart.

01:48:22.271 --> 01:48:22.591
 Right.

01:48:24.351 --> 01:48:28.351
 Not a happy chart, but you know, don't worry about it because inflation is, it's coming down.

01:48:28.351 --> 01:48:29.311
 It's all right. It's fine.

01:48:31.231 --> 01:48:32.031
 That's what I tell you.

01:48:32.591 --> 01:48:35.951
 The oil price is coming down from 250% increase to

01:48:37.071 --> 01:48:38.271
 100% increase.

01:48:38.271 --> 01:48:39.631
 That's, that's right.

01:48:41.151 --> 01:48:44.751
 From now on, we're only, we're only cutting off your finger, fingers down to one knuckle.

01:48:46.751 --> 01:48:47.791
 So that's an improvement.

01:48:48.911 --> 01:48:53.551
 Okay. Let's go, Solari in house, starting with how Poland kept its culture.

01:48:54.271 --> 01:48:59.791
 So many, many years ago, Dr. Joseph Farrell said, don't worry about the government.

01:49:00.431 --> 01:49:02.831
 You can't save the government. You can save the culture.

01:49:03.391 --> 01:49:07.471
 And Elsa von Hemlin did a great interview with him. This one is really good about how culture,

01:49:07.471 --> 01:49:12.191
 how Poland did manage to keep its culture alive during the Soviet Union period. You know,

01:49:12.191 --> 01:49:18.591
 they came out of Hitler and then went right into Stalin and they managed to keep their culture alive.

01:49:18.591 --> 01:49:23.951
 And if you look at their economic performance and their sort of governance performance coming out

01:49:23.951 --> 01:49:29.311
 of that after 89, they've done exceptionally well. And one of the reasons is they preserve their culture.

01:49:30.031 --> 01:49:34.191
 And Joseph has really studied it and finds it very interesting. And I do too, you know,

01:49:34.191 --> 01:49:39.791
 Nina Hein, who writes our food for the soul, her mom was Chinese and her dad was Polish.

01:49:39.791 --> 01:49:45.871
 She grew up in Poland. And so, she always has many, many comments on the Polish culture.

01:49:45.871 --> 01:49:49.551
 Is it one of the educated populations in the world?

01:49:49.551 --> 01:49:55.631
 I was going to say, I lived in Chicago a long time. It's the second largest, Polish population outside of Warsaw.

01:49:55.631 --> 01:50:02.351
 The most popular, the most popular Polish soap operas shot in Chicago. I met a couple of actors from it once.

01:50:02.351 --> 01:50:09.311
 But two of the smartest people I ever met were Polish. I met them in Chicago. They are just incredibly sharp people.

01:50:09.311 --> 01:50:17.471
 So we had all these poles get out from, behind the iron curtain and when they hit New York,

01:50:17.471 --> 01:50:22.351
 they would, they would work for the car service that drove for Dylan Reed.

01:50:22.991 --> 01:50:27.631
 And so I had all these drivers who were PhDs from Poland. They were university professors.

01:50:28.191 --> 01:50:31.151
 And one of them taught me physics. That's how I learned physics.

01:50:31.151 --> 01:50:31.791
 Wow.

01:50:31.791 --> 01:50:36.111
 Requesting his, yeah, because I would request his car because when we would drive around,

01:50:36.111 --> 01:50:38.751
 you know, I'd get, I had to go all over Manhattan.

01:50:38.751 --> 01:50:42.191
 So we were always stuck in traffic for hours and he would teach me physics.

01:50:42.751 --> 01:50:45.551
 It was great. You know, it was fabulous. Yeah.

01:50:46.591 --> 01:50:51.471
 Also fabulous. Back to, young builders.

01:50:52.191 --> 01:50:56.271
 So Nathan files for young builders is on cracking the sleep code.

01:50:56.831 --> 01:51:01.391
 And how to make sure you get a really good night's sleep and manage your health so that you,

01:51:01.391 --> 01:51:05.631
 you sleep well. And then when you're awake, you have plenty of vitality and energy.

01:51:05.631 --> 01:51:11.631
 And Nathan is amazing on these things. He's really, you know, he was, he was born with a disability and

01:51:11.631 --> 01:51:16.351
 he's really taught himself how to be amazingly healthy and healed himself from cancer twice.

01:51:16.351 --> 01:51:23.151
 So really, oh, somebody, it's an unbelievable story. And he's the, he just radiates health.

01:51:23.151 --> 01:51:29.151
 He's, he's like the most, he's got more vitality than any human being I know.

01:51:29.151 --> 01:51:31.231
 That that's how old is this guy?

01:51:31.231 --> 01:51:38.431
 He's in his late twenties, early thirties. And he needs cancer twice already.

01:51:38.431 --> 01:51:46.111
 Yeah. And he's literally almost blind and, but he's unbelievably healthy. And a lot of it comes

01:51:46.111 --> 01:51:52.111
 down to sun and light and how you manage your interaction with light. Anyway, he's like

01:51:52.111 --> 01:51:56.991
 an encyclopedia is like a turbo Wikipedia on health issues. No kidding.

01:51:56.991 --> 01:52:02.191
 But yeah. And he's fun. He's a lot of fun. He's a great guy. He's Australian. So, and he now lives

01:52:02.191 --> 01:52:06.751
 near you. I ought to hook you up with him if you want to meet him. Yeah. He's a lot of fun.

01:52:06.751 --> 01:52:13.951
 Interesting. I'll take a closer look at that. but let's keep it going with the, another round of

01:52:13.951 --> 01:52:19.631
 state legislature briefings. So this is the briefing we gave last week. It was live last week, which is

01:52:19.631 --> 01:52:25.871
 why we talked about it this week. But, now we have the video and it's going up,

01:52:25.871 --> 01:52:32.831
 on Friday. and Dennis Kucinich joined us for the panel discussion. So we had done these four

01:52:32.831 --> 01:52:39.071
 scenarios and programmable money. And what was fascinating, John, the worst case, which is the

01:52:39.071 --> 01:52:44.751
 complete control. You know, you go to an all digital system with complete control, the audience,

01:52:44.751 --> 01:52:51.551
 we had a couple of hundred people say, 67% chance that that is the goal of the leadership.

01:52:52.271 --> 01:52:57.951
 You know, we had say 33% who didn't want to believe that that was the goal and thought it was something

01:52:58.511 --> 01:53:04.271
 more modest than that. What was interesting is a hundred percent agreed. We absolutely have to

01:53:04.271 --> 01:53:10.111
 have legislation to put guardrails up on programmable money. Really? Yeah. A hundred percent.

01:53:10.111 --> 01:53:15.071
 A hundred, a hundred percent. It would have been, we asked about both state legislation and federal

01:53:15.071 --> 01:53:22.111
 legislation on the state legislation, a hundred percent on the federal legislation. It was only 97%

01:53:22.111 --> 01:53:28.271
 because one person said, if you open up anything with the feds, they'll use it to do evil things. And so

01:53:28.271 --> 01:53:33.631
 don't even start down that road. I got to kind of laugh because that's probably right.

01:53:33.631 --> 01:53:39.871
 Right. I looked at that and I said, they're probably right. They're probably right. So anyway,

01:53:39.871 --> 01:53:43.551
 I thought that was interesting, but it's a, the video will be up on Friday and you can see,

01:53:44.191 --> 01:53:48.351
 and it was fun because we were doing the scenarios and then we're asking the whole group to,

01:53:48.351 --> 01:53:54.511
 To vote. And so you can see the polls, you can see the results back and forth.

01:53:54.511 --> 01:53:58.671
 And then Dennis Kucinich was fascinated because he was an eight-term congressman.

01:53:58.671 --> 01:54:02.991
 Yeah. You know, he's a, he's always been a truth teller. And you know, he was, when,

01:54:02.991 --> 01:54:08.191
 when he fought the bankers as mayor of Cleveland, they tried to assassinate him. He was shot

01:54:08.191 --> 01:54:11.311
 at several times and they almost got it. Yeah.

01:54:11.311 --> 01:54:17.631
 Dennis Kucinich is one of the only politicians. He may be the only modern model, modern politician who

01:54:17.631 --> 01:54:24.111
 understands, really understands money. Right. How money's created, how it's, he gets it. Right. Yeah.

01:54:24.111 --> 01:54:31.471
 Right. Okay. Let's keep it going. Our final item on Solari In House this week is kind of on a sad note,

01:54:31.471 --> 01:54:39.151
 and that is honoring Jon Rappoport. Jon Rappoport has passed from this world and we are working on a

01:54:39.151 --> 01:54:44.991
 celebration of his work in life. he has appointed a wonderful gentleman to be the steward of his

01:54:45.711 --> 01:54:50.911
 work and manuscripts. And we are coordinating with him because we want to do a celebration when he's ready

01:54:50.911 --> 01:54:58.111
 to go. and it's funny, as soon as it passed, we started sharing back and forth our favorite

01:54:58.671 --> 01:55:07.551
 Rappoport articles and videos. And John always makes me laugh. You know, he did one speech at the

01:55:07.551 --> 01:55:14.911
 secret space program conference in 2014. It was, you know, it was Mark Twain classic. He did one I saw in

01:55:14.911 --> 01:55:23.471
 Mexico in 2005, I think it was. It that's, he got up in a white suit, pink, pink shirt or tie. I might've

01:55:23.471 --> 01:55:29.391
 told you, I was telling somebody about this. He spoke for two hours without notes and it was galvanizing.

01:55:29.391 --> 01:55:35.631
 It was much, whatever your favorite movie is that you've ever seen. It was not as captivating as the

01:55:35.631 --> 01:55:41.711
 speech. You, we were all like this for two hours straight. No, no. Wow. And that's when I realized,

01:55:41.711 --> 01:55:45.951
 you know, when people would talk about what it was like to hear Mark Twain or a great orator.

01:55:46.431 --> 01:55:54.591
 Yeah. He was an incredible order. Just incredible. Absolutely brilliant. Anyway. So, you know,

01:55:54.591 --> 01:56:00.191
 I just celebrate that he walked among us. I started learning from John in 2000. He taught me the whole

01:56:00.191 --> 01:56:06.511
 vaccine scam. So by the time the pandemic came in, it was really funny. You will laugh at this. The pandemic

01:56:06.511 --> 01:56:12.671
 starts, John and I know it's a joke. And I call John and say, immediately, we've got to do a series to

01:56:12.671 --> 01:56:18.911
 explain to subscribers what's really going on. And so John came on and he was roaring. He was like,

01:56:18.911 --> 01:56:26.271
 this is total lies. And it was so immediate and early in the pandemic. I started getting notes from

01:56:26.991 --> 01:56:32.351
 subscribers, you know, John has gone too far this time and you can't publish this because this is

01:56:32.351 --> 01:56:37.311
 going to get you in trouble. Yeah. I can't tell you how many times I've been to this rodeo. This is

01:56:37.311 --> 01:56:44.991
 finally going to get me in trouble. And he was dead on right. Yeah. And he called it. Right. He called it.

01:56:44.991 --> 01:56:50.111
 Yeah. It was bogus, bogus from the start. I knew it was bogus. The stickers on the floor is what got me.

01:56:51.391 --> 01:56:57.551
 It's like, really? You just, you just went out to your, your warehouse full of industrial strength,

01:56:57.551 --> 01:57:03.471
 six foot wide stickers, telling people to keep six feet apart and had billions of these stickers ready

01:57:03.471 --> 01:57:10.751
 to go. Not planned at all. Yeah. Yeah. Yeah. You must've got, did you run, did you get those

01:57:10.751 --> 01:57:17.711
 at King College last night? No, they got ordered from China. Yeah. I knew. I told you, I told you about

01:57:17.711 --> 01:57:22.431
 the doctor who told me about the hospital pallets right after they announced, you know, the beginning

01:57:22.431 --> 01:57:27.711
 of it, he's laughing his head off because you're not going to believe it. There are pallet after

01:57:27.711 --> 01:57:32.991
 pallet after pallet of masks at the, at the loading dock of the hospital. Yeah. Same thing. He said,

01:57:32.991 --> 01:57:39.551
 from China, from China, they're from China. Right, right. Right. It's ta-da. I guess DHL just flew

01:57:39.551 --> 01:57:45.391
 there playing in and got them all there on time. It was amazing. Yeah. The whole thing was ludicrous.

01:57:46.511 --> 01:57:51.551
 Oh, I got little details right. I was still like, yeah, they must have done this in Wuhan

01:57:51.551 --> 01:57:57.711
 before I realized, no, it's all things. It's a spreadsheet operation. It's a theater.

01:57:57.711 --> 01:58:02.671
 They reclassified the flu as this, so. I don't know. You know, excellent theater

01:58:02.671 --> 01:58:07.791
 production is hard. You should be more respectful. I should. You're right. Anyway, I am not.

01:58:08.351 --> 01:58:12.191
 Yeah. But that's it for this week on Money and Markets. What a week.

01:58:14.191 --> 01:58:17.631
 I got a feeling it's going to get hairier, though, with Iran going the way it is.

01:58:17.631 --> 01:58:19.951
 So it's going to get, it's going to get much hairier.

01:58:20.431 --> 01:58:25.151
 Yeah. Let's see. So this could be the last. I mean, I'm glad we did Don't Spy on Me,

01:58:25.151 --> 01:58:32.191
 because I think if we had sort of waited on that. We don't know what's coming with it between the

01:58:32.191 --> 01:58:39.071
 shortages of oil and the running out of munitions in Iran. There's a lot of balls in the air right now.

01:58:39.071 --> 01:58:47.471
 So here's what I know. If you're listening to this, you need to keep every week improving your internal

01:58:47.471 --> 01:58:55.471
 resilience in your home, your family, your area, your community, just every week, you know,

01:58:55.471 --> 01:59:01.471
 and get out coming clean. Coming clean is a great tool to sit down and say, okay, just, you know,

01:59:01.471 --> 01:59:08.431
 just turtle it. Just every week do something else to improve your resiliency, because whatever's going

01:59:08.431 --> 01:59:14.191
 on and whatever happens, you're going to need, you're going to need that resiliency. It will serve you well.

01:59:14.191 --> 01:59:24.031
 Right. Okay. Well, until next week, Ms. Fitts. Have a great week, John. Thank you again for another

01:59:24.031 --> 01:59:29.711
 amazing Money in Markets. And ladies and gentlemen, thank you for joining John and I on the Celebrity Report.

01:59:30.591 --> 01:59:33.871
 Keep your state of amusement. We'll see you. Bye.