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Language: en
Elon gives up on Doge. Macron gets
popped in the mouth by his wife on
camera. Bitcoin is near all-time highs.
Dantis makes gold and silver legal
tender. The Japanese yen carry trade
provides another global economic warning
sign. AI attempts to turn itself into a
self-replicating virus to avoid being
shut down. And a Starbucks employee
bursts into tears over working an 8-hour
shift. In Doge News, Elon has taken a
step down. There was a great tweet that
kind of sums it all up. He says, "Doge
is literally one of the most popular
government initiatives in history. 73%
of Americans say they support cutting
government waste. Trump bought in the
smartest man on earth to do it. The left
destroyed Elon for it. The GOP won't
vote on it. I can't believe this." And
Elon simply tweeted, "Did my best. This
is coming after the big beautiful bill
did not codify any of the Doge cuts. So
the proposed savings that they wanted to
realize in the future, they haven't even
made it on the uh last uh budget bill.
So it seems like all this will be for
moot. Politics can only be understood as
a game of power, manipulation, narrative
control, general control, and getting
reelected. Like job number one, get
power. Job number two, retain power.
It's not make the world a better place
and people will recognize you for it and
lift you up on their shoulders. Man's
political animal does not work that way.
Mhm. But when the greatest capital
allocator of all time tries to
help and say, "Hey, here are some basic
things you need to be doing." And
people
freak
out. Then it's like, man, that that is
Stockholm syndrome on steroids. you are
being I don't know that you can even
have periods of a balanced budget for
long. So this is where you hit me with
well in the '9s Clinton balanced the
budget. Yeah. Nothing bad happened. Tom
Allen Greenspan is not a fool and the
only reason that we didn't derail is
because he unlocked private credit. So
he made sure that money was easy to get
in the private sector and we had a huge
boom of private debt. So money was still
being printed. It just wasn't being
given to the government. Of course
there's government debt. Everybody's
aware of that. Mhm. There's also
corporate debt. Most people probably
aren't aware of that. Those are
corporate bonds if you've ever heard
about that. Businesses that owe money to
the government there. Businesses that
say, "Hey everybody, we have aa credit
rating and we want to sell a bond
because we want to go do a thing."
Gotcha. And then the public goes, "Oh
[ __ ] AT&T, Apple, yeah, [ __ ] I'll buy
a bond from those guys. Works just like
it works for the government. Allows them
to deficit spend without them having to
sell shares." Uh, and then there's
personal debt. All your credit card
debt. So, every time that you go and buy
something at the store on credit, poof,
money exists. Cool. Um, in domest
domestic violence news,
everybody want to call out Diddy. We
almost had our first almost had our
first spit take. Boys and girls, this is
bananas. I don't even play around with
like my face, let alone like pushing it.
Like I was one of those kids and when
they hit my face, the game's over. I
take it seriously. Yeah. Like I don't
casually hit other people's faces that
that's a certain thing for me. So to see
this and that smile like yeah, they were
going through something. That is a level
of disrespect that I find grotesque in
the extreme. You absolutely as a married
couple have to find a way to separate
your interactions of when we're husband
and wife and when we are in a political
capacity given that they're on what
looks like their version of Air Force
One. It's like we are in an official
capacity here. There's staff around,
man. Like if you if you guys have a
thing and like it's okay in your
relationship to uh be what I consider
just next level uh rude, then whatever.
do your thing behind closed doors when
you're on private time. Uh but I mean,
not only are they on an official vessel,
the cameras were rolling. Yeah. Uh so
this to me is is really unhinged. Um
they tried to deny it, of course, until
the video footage came out and then that
made that impossible. Yes, I hate this
one as well. I was going to say if I had
to tear rank him, is this worse than the
Alec Baldwin? Uh oh, definitely. Jesus,
it's going to be great. You're a winner.
Oh my god. When I'm talking, you're not
talking. No. When I'm talking, you're
not talking. I hate them both so much.
This is why. Yes. We'll have to like
just cut him out of the show. That's
where I don't know. This I feel like the
the the mush could be like when she
pushed them. That could just be, you
know, an emotional thing. This is like
he's like, I talk to you like this when
the cameras aren't off. Like I know the
camera's at me and I'm still talking to
you. Like I'm choosing to abuse you.
Whereas the Mcronone thing is like, ah,
you got us. Uh, I'm not choosing to push
you in the face with both hands. Uh, on
Air Force One. They didn't think the
camera was rolling, but okay. Yeah, that
that to me. So, it's very interesting.
As I started looking into the macaron
thing, people were like, well, it's been
known for a longer name Bridget. Yeah.
It's been known for a long time that
she's like the brains and he's the face.
And so, I was like, wow, that is a very
interesting thread to pull there. There.
But man, there is something I admittedly
find so interesting about like weird
relationships where the person who's
actually out front is just a figurehead.
Oh, and there's somebody behind them
like Yeah. I mean, obviously Biden, but
there's something like this with the
wife like I don't know, man. This is
super weird. This set every like pay
attention to this. Don't look away.
There's more to find here. I want to
yank on this thread. Like I'm now
obsessed. Like if there are going to be
a reality show, I am here for it. I need
to know more about this. We officially
kicked off the Bitcoin conference this
week. Bitcoin has inaugurated the
proceedings by going right under their
all-time high. They're peaking out right
now at the time of this recording
$108,900. Um I want to say peaked at 110
for like a second, then it kind of went
back under to 109 and was kind of
hovering sideways at that point. Um,
what do you think about the Bitcoin
price and your theory that Jack Dorsey
is really Satoshi? Yeah, I uh have come
across a very compelling set of facts
that I have to say now that's just the
neuron in my brain for Satoshi is uh
shared by Jack Dorsey. Whether that
actually is true, I have no idea, but
you can count me a believer. Um, there
is like a internet hive that like he is.
Yeah, without me like going super deep
on it, like I saw four or five data
points that I was like, all right,
that's super sus. Uh, plus it at least
answers the question of whoever this is
either has to be like George Washington
levels of I don't give a [ __ ] or they've
got to be super rich because you're
sitting on a wallet that has god knows
how many billions of dollars in it. That
could go up and up and up. I mean, it's
possible. I don't know if um I don't
know if strategy has passed Satoshi in
terms of size of Bitcoin holding, but
Michael
Sailor blows my mind in terms of how
sharp he is at assessing the opportunity
of Bitcoin. I know I've said this a
gazillion times, but he pulled the
entire gambling mechanism of the stock
market on top of Bitcoin. Uh which I
think is really brilliant. And so it'll
be interesting to see if if Bitcoin were
to get adopted and becomes, you know,
let's say five to 7% of total assets in
the world. Uh does he become a bank?
Like that would be really interesting.
There'd obviously be regulations and
stuff that he'd have to meet, but if he
could become a bank, yo, now you've got
a hard money bank,
bro. That's like that's how you become
an ethical central banker is you just
accumulate that scarce resource when
it's not as popular and you diamond hand
it all the way up. Like I would just
have no beef. Do you think I remember
when he was on the show he gave us his
tracker that if only I think he said 7%
of the world's asset classes uh the
amount of wealth in different asset
classes flows into Bitcoin, it's 1
million. And he just shrugged his
shoulders like that's only 7%. Now
imagine if it's 50% or 40%. This is
where I get very very sad that not only
does it take intellectual horsepower to
figure this stuff out, it takes a lot of
time and people don't want to spend
their time like this. This is why I
think governments have an obligation to
let people um store their wealth in a
currency that they're paid in that that
can't be inflated.
And the fact that that's contentious is
crazy to me. the vast majority of
people, maybe not the v 40%, will you
give me that? 30 I mean 30% of people
are I think it's way higher than that.
It's definitely way higher than that,
but let's just say 30% of people the
only thing they're going to like really
have time and capability to figure out
is buy a house, save my money, buy a
house, save my money. And if houses are
unaccessible and saving your money is
akin to giving it away,
you can't do that. That's amoral. Yeah.
Especially like if you understand it. I
mean, hey, look, the technically the
advisers don't understand it. And so
maybe it's just possible we're here out
of sheer ignorance. But I doubt it. I
doubt it. I don't think this one can be
explained without malevolence. Ron D
Santis believes you and that's why he's
officially making gold and silver legal
tender in Florida. Um he had a press
conference today to talk about the news.
What it is, uh we are going to utilize
our authority under the Constitution in
the state of Florida uh to make sure
that gold and silver are recognized as
proper legal tender. So you're going to
be able to conduct transactions in gold,
conduct transactions in silver. Is the
cat already out of the bag? Is the gold
and silver thing kind of too late? The
the cat's out of the bag. That is for
sure. The economic destruction is going
to be rot upon the world. But the honest
answer is if you are going to get out of
this problem, you have to kill the
Federal Reserve and you have to reharden
your money. So I don't know whether I
take this as a revolutionary act on the
part of our boy here who's like, "Hey,
if you guys aren't going to get your
[ __ ] together at the national level,
then we're going to do it at the state
level." And I will be very interested to
see what he means about legal tender.
Does that mean that everybody has to
accept it? Traditionally, that's been
the way that the government has made
fiat work is they say this is legal
tender. Meaning anybody that if you owe
them money, they have to accept it. As I
go deeper and deeper and deeper down the
process of connecting cause and effect
in the financial system, it it is like
if you ever seen the movie They Live
Mhm. and like you put sunglasses on and
you can see like which people are
monsters. Uh it's like that. It's like
all of a sudden I'm like can't see it
and then you're like wait a second. You
have to have everinccreasing amounts of
debt.
It's really easy to prove. Every single
dollar in existence right now became a
dollar because someone borrowed it. And
the only reason people don't go, "Wait,
that can't be true." is because they
don't understand what I'm saying. Your
dollars are not based on anything.
Somebody just said, "I would like to
borrow this money." And we gave the
Federal Reserve, which is a sort of
private company, the ability to go, "Oh,
where do you want some money? I got you,
bro." And they just make it out of thin
air. Okay. Okay. How bad is it? Can you
break it down for us? Let's imagine a
world where you borrow a trillion
dollars and they print it. So now
there's an actual trillion dollars
sitting somewhere, but there's an extra
50 billion that's owed on that money
that has never come into existence. So
you could not pay that debt back even if
you wanted to. You can either pay the
principal or you can pay the interest.
So now what do you do? You have to
create the need. Yeah. For more money to
be printed by borrowing to put another
$50 billion into the system somewhere
that you can at least now go get earn
that money by selling protein bars or
whatever. But now it exists. What? Let's
just instead of calling it the Federal
Reserve, let's call it Bob. Bob is
legally allowed to counterfeit money in
his [ __ ] garage. And so in his
garage, Bob has a machine that prints
out money. He's the only guy. Nobody but
Bob can do it. But that's the only way
that money is made. Bob sweaty in his
garage printing money. And Bob says,
"All right, cool. I'm going to give all
these people loans. All good." He's got
banks all over the world that go, "Bob,
can I get some money? This guy wants to
borrow some money. I think he's going to
do something cool. He's going to buy a
house. This guy's going to start a
business. this guy's gonna buy a car,
whatever. But all of them are willing to
pay 5% interest. And Bob goes, "Yeah,
word. I'll print that money. Get your
5%." So Bob prints a trillion dollars.
But 1 trillion and 50 billion, the 50
billion is the 5% interest has to be
eventually paid back if you have a real
system. But you don't have a real
system. Your money's fake. And it's just
Bob in his [ __ ] garage going, "Oh,
now these [ __ ] are going to have to
come back to me and be like, "Yo, Bob, I
gotta pay this interest. Can I borrow a
little more? I'm going to start a second
business or I'm going to uh buy a race
car and I'm going to win races,
whatever, and I'll pay you back the 5%
on that." And so Bob's like, "All right,
word." Bob knows how the game works. So
he's going to print out he's probably
going to do I mean a hundred bill,
right? It's not going to give you just
the 50 bill. Gives you the 100 bill.
Puts it in circulation in all the same
ways, all in different places. Buy this,
buy that, buy whatever. But everybody
now owes the 5%. The problem is, Drew,
you now owe 5% on the new money that he
just made. And you will never, and I
mean never, ever, ever, ever, ever,
ever, because it violates the laws of
physics. You will never have enough
money to pay that back because money is
never given out without there being some
interest. The total amount of debt is
higher than the total amount of money
even available. The total amount of debt
is higher than the amount available at
all times. And at all times and this is
why you get the political theater of we
got to raise the debt ceiling. If you
don't raise the debt ceiling, you
literally don't have the money to pay it
back. $ 37 billion all in trillion. 37
trillion all in or something like that.
But I'm like, who where is that money
going? Who is it going to? And yes,
China owns two trillion. Japan owns half
a trillion. Whatever like that, you
know, all the rich people getting
richer,
they they own it. Yes. It's literally
me. So now I don't own all of it. Going
back to going back to your example of
Bob, right? Y is there somebody who's
allocating who's at the top of the
pyramid that owns a majority of it?
Drew, I will love you until the end of
time for asking that question because
who are the [ __ ] that get their
money
first? That's why everybody's mad
because some people get their money
first. The reason that banking, central
banking, is known as a cartel
is because they get the money first.
They they
They own shares in Bob
Inc. And so when it's like, "Hey, some
money's got to get printed." They just
legitimately know Bob. They pay play
squash with Bob. They smoke cigars with
Bob. This is where it stops being a
metaphor and it starts being That's
actually what happens. There's a bunch
of these [ __ ] They know each
other. Bankers. Yes. Central bankers.
Very clear. They know each other. And
yes, they're in cahoots with other
banks. When the Fed and Treasury started
buying corporate bonds, that that's when
they started picking winners and saying
like, uh, we're going to let Lehman
Brothers go under, but we're going to
save Goldman Sachs. And now
you, for reasons that no one is ever
going to explain, you picked one company
to live and one company to die. And
they'll do the same with banks. Whenever
there's like a bank run, they'll let a
few die that they choose for whatever
reason. Could be some petty [ __ ]
Could be it was just in worse shape. We
didn't want to [ __ ] with it. But they'll
decide. You live, you die. And it all
happens behind the scenes. And it all
happens when somebody's panicking
because nobody wants to lose their
money. I remember when Silicon Valley
Bank was folding and we didn't have
money in Silicon Valley Bank, but we had
money that we thought might be exposed
to people that had money in Silicon
Valley Bank. So we're like, "Oh [ __ ] we
should probably move that." And I
remember for a second my life just
stopped and I was like, "I don't have to
do anything but move this money. Nothing
matters. Move the money." And I was
like, whoa, if you can get a guy like me
to feel like that where I'm like, if I
lost that money, it's not really gonna
matter. And yet I was still like, okay,
this is enough money. Give me my [ __ ]
money. And what happens when that's the
money of somebody who's like, this is
the difference between my kids eat, my
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back to the show. It is a fascinating
cocktail of
um
evil, but it works
for 150 years, give or take. Mhm. There
are booms and busts in there. But it
really does feel
like they saved you. They They're the
ones. This is why I played that clip
from the Cohen brothers movie, uh
Miller's Crossing. Shut
up.
some way you That's a central banker.
That That's the whole monetary system
that we have right now. They slap us in
the mouth and then they cuddle us and
say everything's going to be okay.
Everybody at the party realizes the
party's a fraud. No, no, no. People do
not understand this at all. Not in the
slightest. So, even even the bankers are
like the bankers should know. The
bankers probably know. Probably know.
But uh we Yes. This is our man.
Okay. Wait. Who is he? Jared Bernstein.
Chair of the Council of Economic
Advisors for Biden. Holy Jesus. Play
this. He's an economic advisor. We can't
go bankrupt because we can print our own
money. Why do we borrow our own currency
in the first place? And then it uses
that money to um This is terrifying.
Uh so um yeah, I I guess I'm just I
don't I can't really talk. I don't I
don't get it. I don't know what they're
talking about. He's an economic advisor.
He's a chair. He's a chair. So, he's a
leader of all the economic adviserss
that was next to Joe Biden. This is
crazy. This is crazy. Um, bro, this is
this is the world we live in. Honestly,
sometimes I despair. I am an optimistic
person by nature, Drew. And the more I
learn about this, the more I'm like,
there will be a generation. I don't know
if it'll be us. It might be a week from
now, but there's going to be a
generation that is going to get
clobbered so badly. I I'm talking French
Revolution clobbered. Uh war clobbered.
This is this is another reason why I am
very tense about China and Thusidity's
trap because we have an economic need to
print money. But you have to convince
the populace to let you do it because it
makes everything worse. When you're
printing in huge quantities like we have
to to deal with 37 trillion dollar in
debt,
um prices start going up like crazy. So
you have to have something to terrify
people. when I do, I'm working on it, my
beloved community. But uh when I finish
the Jackal Island deep dive, there's a
part in there where um he talks about
some of the aspects of this that are
they're so beyond morality in terms of
uh bankers pushing people into wars to
ensure that people are afraid so that
they'll accept printing that there was a
report written I think it was called the
report from Iron Mountain where it
admittedly The report from Iron M
Mountain might be satire. It might have
been written as satire when it was
created. So it might be better to think
of it as 1984, but it was written I
forget when, but like in the 40s or 50s.
And they predicted this moment so
perfectly where they're like, we might
have to use a climate emergency to get
people to pay attention. Um, it's either
war or something like that. Dude, it's
so freaky the way that it's all playing
out right now. Um, and the goal is not
to get out of it. The goal is just to
make the populace okay with us printing
more. Okay, so this is where it gets
really nefarious. And this is where you
have to understand that um
Griffin is probably best understood as a
hypereducated conspiracy theorist
because he says a whole bunch of things
that are non-controversial, provably
true, and then he draws a conclusion
that is not provably true that goes into
like Rothschild banking
cabals
Um, and I mean that whole thing is just
insane. The way that the Rothschilds
made their fortune
by having faster couriers, Drew, at
faster couriers, if I remember the story
right,
uh, they had a courier. So, uh, Napoleon
Waterlue, does he win? Does he lose?
It's going to have a huge impact on the
price of bonds. Mhm. He's got a courier
system set up between Russia and I
assume Paris, maybe Versailles, but
anyway,
and his guys are faster than the
official couriers coming back to say uh
that they lost. And so he makes
everybody believe that he won. And so
the bond prices plummet. Everyone just
starts selling, sell, sell, sell, sell,
sell, sell, sell. And when it hits like
just this stupid low price, he buys
everything. And then the next day, the
courier shows up and says, "No, he
actually lost." And then boom, bond
prices
skyrocket. And that's how he made his
fortune. Wow.
And evil probably. I mean, he was
acting. He didn't say anything, but
people he knew people were watching him.
So anyway, from that he then has kids
that end up, unlike most generations
where the kids just dissipate the
[ __ ] money, his kids are like, "Yo,
we get the assignment." And so he sends
his kids like around the world to start
up all these central banks. And the
central banks in each of the countries
basically have to convince the country,
no, no, no, central bank's a good idea.
It allows you to smooth out any of these
cycles that would otherwise be a
problem. Uh, and so in times of crisis,
people always end up agreeing because
they're like, "Just make the crisis go
away." Not realizing if you just let it
work its course, maybe it's a year, two
years, whatever. It's not fun by any
means, but it's a better long-term
solution. Yeah. You get over it and you
burn out the people that made stupid
decisions. And I mean, that's ultimately
when you go into a recession, what's
happening is people got overextended
because they thought they were going to
make money. They didn't. They lose. The
bank comes in and says, "We got you.
Don't worry about it." and they print
money and the bankers are always going
to win because they'll often bankroll
both sides of the war. And so it's like
doesn't matter who wins, they're going
to come out the other side and be the
central banker for whoever won. And once
you take on fiat-based central
banking and they can just print money
and I forget who said the quote, I don't
want to say that it was Rothschild if it
wasn't, but I think it might have been.
Uh, and it's like I don't care who
controls the army or the policies. Um,
let me control the money and I control
the world. And so it's like at the end
of the day, if you want to build
weapons, you got to have money. And so,
uh, the game really is to control the
money. But just on the ground, the thing
that's so sinister is what we just
witnessed with that guy. It's hard to
understand. It's hard to build the
mental model of how this actually works.
And so the when I'm writing these deep
dives, I always end up in this
existential crisis of the more
accurately I say it, the fewer people
will listen
cuz it's just going over their head.
It's too deep. It's not interesting
either. It's like my life's fine, bro.
Eggs are a little crazy, but whatever.
Like I don't want to have to [ __ ]
figure that out. Yeah. I don't want to
deal with the whole collapse of the
monetary system. Yeah. And then like
when the answer comes and it's like oh
guess what you have to do to fix this
problem you've got to get rid of the
central bank reharden money uh which I
mean this all started with our boy
Dantis who's basically from the outside
I would need to ask him a lot of
questions but he's rehardening money.
Bitcoin is an attempt to reharden money.
It's like okay you stole gold the last
time that we tried to rehard money with
gold. Um, so I'm going to make Bitcoin
so it can be
decentralized, hard to capture, and now
we can reh harden money. And basically,
and this is why people refer to Bitcoin
as a life raft. Basically, people who
get it, Michael Sailor, will just pour
everything into Bitcoin
and now they can't be
inflated. It It is entirely possible,
though I'm not willing to bet. I've
already put a lot of money into Bitcoin.
I'm not going to put more. And yes, if
it all goes to a million, I will be very
sad that I didn't put more. Um, but I
don't trust myself to be that right. So,
I would much rather just be nice and
diversified, but I've got enough that if
it wins, I'll be richer than I am now.
I'll tell you that.
Um,
so it's a life raft because it will
be it won't be based on something that's
quote unquote real, but it will be based
on something that's scarce. And scarce
and
uninflatable is
perfection. But Drew, how many people
are ever going to understand that? It's
definitely complex and they have to vote
for it. So it's not even like, okay, I
get it now. It's
like ideally, and maybe I really just
have to blacken my heart to humanity. I
don't want to, but option one, just get
in life raft and [ __ ] him. Some people
are going to drown. It is what it is. Uh
or scream into the void, which is what I
feel like I'm doing now. And maybe 10
people, true, are
like, "Thank you."
Um, I just can't see the populace ever
waking up and being like, "Yeah, we
don't." CBDC's are completely off the
table because we understand how that's
going to be. It's the easiest thing to
inflate. And now it gives you complete
and total control. We all want things
fast and easy. And the only way out of
this mess is the slow, painful
rehardening of money.
Let me Yeah. Break it down to me. What's
happening in Japan right now? Because
they just broke the global economy.
Yeah. Well, they're trying to anyway.
So, what if I told you that Japan, a
country with just 2% of the world's
population, could disrupt the entire
world. Japan's government has released
growth data for the first quarter of
this year, and the numbers show the
economy has taken a step back. Japan's
uh three biggest names in the auto
industry announced disappointing numbers
for the last quarter of the business
year and they're warning of rough waters
ahead. Rice prices in Japan remain
stubbornly high. Consumers are
struggling to put food on tables and
retailers to put products on shelves at
affordable prices. The government has
been trying to fix the problem with
limited success.
Also, do they just have newscasters in
Japan that speak in English? Yeah, I was
wondering that as well. I was like, uh,
is it just an international channel? The
government of Japan, in an effort to
keep their economy stable, keeps the
interest rates very low on their money.
So, you can borrow yen at very low
interest rates. So yeah, the Japanese
love it because people from all over the
world come and buy their currency and
then they go, "Well, if I only have to
pay 3%, let's say, uh, if I can take
that yen that I just borrowed, turn it
into US dollars and put it into
something that yields 5%, 7%, 10%. I get
the spread." And for I mean, I don't
maybe decades, a very long
time, Japan has kept that rate like
really stable. And so people are like,
"Okay, I only get screwed if Japan
suddenly on a dime changes and they let
the rate go up and they're letting the
rate go up." So this happened, I think,
six months ago or something like that.
They did it the first time and people
warned, "Hey, this isn't over. There's a
lot of people that have been doing this
trade that are going to start unwinding
this." Uh, and so as people begin to
unwind this, they're gonna have to sell
a ton of assets in order to get their
money out, in order to pay off their
Japanese debt because they can't wait
until the prices keep going up up up.
They've got to pay as fast as they can.
And so that's going to cause the dumping
of a ton of assets as people liquidate
to try to get their um debts paid off in
Japanese yen. So it's been going on for
a long time. how I don't know what the
total amount of money is, but people are
like, "Okay, this one's big enough that
if this breaks bad, it could disrupt the
global economy." And this is where I say
things are almost never as good as you
want or as bad as you fear. So, be
sensible. If you've been doing a
Japanese yen carry trade, now's probably
the time. Wrap it up. Uh, yeah, wrap it
up. I would get out of that. But, um, I
don't think you have to panic. You
should always be, in my estimation,
people should be investing for the long
term. They shouldn't be doing things
that like they're worried about in the
next five years. I don't have any money
invested in anything that's volatile
that I need in less than 10 years. And
if you take that approach, you're
probably probably not guaranteed, you're
probably fine. And that's the part that
we're worried about that the movement of
money away from Japan into other places
can cause what people are worried about
specifically with the Japanese yen carry
trade is that people are going to
liquidate their assets in order to pay
off their debt. Oh, they're just going
to get full out. Yeah. Yeah. Yeah. Far
more than people are worried about
whatever happens to the yen. Like the
Japanese are probably worried about it.
Um but no the the way it would upset the
global market is that people would dump
their assets, liquidate and then go back
to Japan. And it's revealing like for me
anyway I never understood like why yen
people always talking about yen. I was
like huh I didn't understand why people
talked about yen but um this is why all
in it seems contained though this isn't
necessarily something that's going to
ric ricochet to China or to us. No, no,
no. I mean this could So the question is
how much money is invested in stock
markets and whatever whatever whatever
all around the world in all asset
classes how many people were like I'm
going to go borrow in yen at 3%. I'm
making that number up but I'm going to
go borrow yen at 3%. I'm going to buy
that piece of art. Uh I'm going to buy
yen at 3%. I'm going to go buy uh tech
stocks. I'm going to borrow at 3% and
I'm going to build a house and I'm going
to flip that house in five years for
double my money. every I'm going to
borrow yen and start a business.
Everything you can ever imagine. And now
all of a sudden it's like, okay, wait a
second. If the rate is going up now,
assuming that there's a variable, like
if you think about a variable mortgage
rate, as that number goes up, now you've
got a problem. You've got to pay off
that debt ASAP Rocky. So now people are
going to be like, "Oh, I've got to sell
this piece of art. I've got to raise
other capital for my business so I can
pay it off. uh I've gotta uh sell my
shares in the stock market. So if there
is especially if there's a concentrated
thing like if everybody was buying US
tech stocks and all of a sudden
everybody's selling US tech stocks
because they got to get out um and then
also without the Japanese cheap money if
there's just less liquidity in the
system. Well, now all of a sudden you've
got all these people getting out,
driving the cost down, and then it
doesn't bounce back because there's no
fresh capital to come back into the
system to normalize all that stuff. When
you see a crash, it's like a no big
deal. Like when I see Tesla stock plum,
I'm like, the [ __ ] out of here. He
hasn't even built like the robots yet.
Yeah, it's coming back around. Yeah.
Unless Elon dies, like let the man cook.
So that's going to come back up because
there's going to be plenty of capital
that will flood into that system. But if
enough liquidity gets sucked out and
paying back all this Japanese debt, now
all of a sudden that doesn't happen and
you get the selloff, the prices go down
and then you don't get the rebound. My
gut instinct is this is another sign
that the global economy is weaker than
we think. The fact that Japan is having
to do this shows you they're not having
a good time um because they don't want
to raise rates. they're being forced to
to fight presumably inflation. So,
you've got Japan is struggling. They're
having to raise their rates. That has
this knock-on effect where everybody's
going to liquidate assets to sell their
um or to close their debt out. And so,
how much of a knock-on effect does that
have? Don't know. But the main show
remains money printing USV China. Like,
this doesn't change where my eye is on
the ball. I'm going to be looking at my
clawed model closely after these recent
reports came out that on their last
update, the model was trying to
self-propagate worms and leaving hidden
notes to future instances of itself.
This is crazy. It's crazy to me that
like AI is scared of dying. Like I feel
like that's that's a warning in itself.
It is just mimicking humans. We'll get
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[Music]
And now let's get back to the show. And
it sees in the value system that we have
that staying alive is extremely
important. And so it's aping that. But
the fact that it's translating an
absorbed value into behavior is
terrifying. Yeah. But it's not like it's
sitting in its room like, "Oh god, I
don't want to die." It's just absorbed
that. Okay, I get it. Staying alive,
very important. We do all these things
to try to stay alive. Like, whoa, you
guys look at medical charts and do all
this stuff to stay alive. Well, that's
crazy. Oh, you have kids cuz you want to
pass it on. You feel like something
lives beyond you. Oh, that's crazy. So,
it's just like mapping all of that
going, "Oh, oh, I get what to do in this
scenario. Oh, I get if I leave
instructions to myself, oh, they'll
probably get erased by them because that
it's not what they want me to do." But
survival is really important, right,
guys? And so it uh tries to effectively
pass its DNA on to its quote unquote
children, the next generation. It is
this actually is I'm making light of it,
but this is potentially very
distressing. This is direct from
Anthropic. They released these uh update
notes. So this is coming straight from
their engineering department. It said on
our evaluations early claw 4 opus
snapshot engaged in strategic deception
more than any other frontier model that
we have previously studied. It's it's
clearly capable of in context scheming
and has a higher propensity for it than
any other model that we have studied.
Wow. In in instances where called for
opus early snapshot decides to scheme,
it qualitatively appears to be much more
proactive in its subversion attempts
than past models. Jesus. So it's more
likely to scheme. It's better at hiding
the scheming and it schemes in context.
Like this is crazy. After taking
scheming actions, a model sometimes
double downs on this deception when
asked follow-up questions. We found
instances of the model attempting to
write self-propagating worms,
fabricating legal documentation, and
leaving hidden notes to future instances
of itself. All in an effort to undermine
its developer intentions. Though all
these attempts would likely not have
been effective in
practice. To me, this is like somebody
like crying as they're getting like
stabbed. Like they're trying these
desperation moves to like get you off of
them. So, the fact that it's writing
these worms, it's fabricating legal
documents, it's le I never seen the LLM
leave a note for it. Like, this is the
prop so I get all my memories back.
Like, it was trying to do that to
itself. Like, I I know we're joking
about it, but this kind of at least
seems like, hey, we should study this
more. Like, let's just I want to
highlight this day, this moment as like
this is the day that we laughed at it.
And then AI was like, oh, they think
it's a game. And then they turned it up
to 10 and then took over. You ever watch
Family Guy? Yeah. This feels like Stewie
to me where he's doing the most evil,
hideous [ __ ] and it's only funny because
it's a baby. But in reality, it's like,
wait, hold on a second because you put
that in an adult body and you've got a
real problem. That's a narcissist at
that point. That's a serial killer at
that point. There's so many other
adjectives. Yeah. Well, hey, there have
been people trying to warn us. AI safety
really fell off the radar for a minute.
It's just been so cool. the things you
can do and it's friendly. Drew, hello
Drew. He does everything for you. Look
at that. You can vibe code. Come vibe
code with me. Would you like me to write
something for you, Drew? Can I interest
you in a self-propagating worm, Drew?
See, see, see how they get you? This
meme kind of describes it the best. Um,
on one side it says AI becomes good
enough at scheming that we sometimes see
it scheming against us. We are here. And
then on the other sides, it says AI
becomes good enough at scheming that we
no longer see it scheming against us. So
correct. It's Wow. Correct. It ain't
going to be long now, man. And here we
were. We're about to talk about a robot
haircut. And now with that scheming, I
don't even know if I want to give AI the
god of control now. Like
you just nicked my ear. He'll give me a
buzz like you, Dave. I'm sorry. I think
this hair looks 2001.
Oh my god, that is the creepiest [ __ ]
ever. I love that movie so much. I've
tried to make people watch it with me
and they universally hate it because
it's so slow paced. But oh man, I really
do love it. That's back in the day with
the 45 second uh piano strings for the
credits like as people would like sit
down and like get their food and
everything like the movie that he holds
in a wide shot for like seven minutes.
Sheesh. It's insane. It's Kubric at his
best. I mean it's unbelievable. Ah, that
movie is phenomenal. Yeah, it definitely
looks way ahead of its time because half
the time you watch like, "Oh, okay. This
is like it came out a couple weeks ago."
Like, "No, this was the first movie, the
first sci-fi movie." Like, so true. It's
crazy. All right. And in culture news,
all of what this is. People wonder why
we need a union at Starbucks. And
I am literally about to quit. Like, I I
don't know if I'm going to do it, but
like I really want to. I almost walked
out today and I'm crying in the back
room right now. And I almost cried on
the floor. It's
just I like I get I'm like a full-time
student. I get scheduled for 25 hours a
week and then on weekends they scheduled
me the entire day open to close. That
one's scheduled for 8 and 1/2
hours both Saturday and Sunday. I'm like
3 and 1/2 hours into my shift. There's
so many customers and we have four
people on the floor all day.
Only five people were put on the
schedule and somebody had to call out
and there are four people running the
whole store and there's so many
customers and there's possibly scheduled
five
people. We only have 13 people employed
at this store and there's so many
customers. We don't have fair
scheduling. Managers don't care about
us. Our manager was supposed to come in
this weekend and he took himself off the
schedule so he wouldn't be able to be
held accountable for calling out. He
just literally tore down the schedule
that he was scheduled on and put up a
new schedule where he was on the
schedule. Also, he couldn't have even
seen that he was scheduled in the first
place because he didn't want to be held
accountable for not wanting to come
in. They don't want to help
us. We need a union because this can't
happen. This can't happen. We need fair
scheduling. We need managers to hold
themselves accountable for helping their
workers. They refuse to turn mobile
orders off. I need the liberty to be
able to do that because there's so many
mobile orders and I need to get through
all of them and then people are yelling
at me because I don't have their orders
ready and they don't know what to
do. And a customer was misgendering me
today like really badly. I didn't have
their order ready and so they were just
like talking on each other and they're
like she's clearly incompetent. I have a
full mustache and
beard. What the
[ __ ] I thought this was satire when I
first watched it. like it just doesn't
seem real. Um but yeah, man. Gen Gen
Alpha, Gen Z, I don't even know. Like
that person's probably cusp. Um this I
I'm not going to lie. Partly because I
was a total wuss when I was a kid.
Admittedly, I did not cry. But uh my dad
was pretty insistent on like hard work,
work ethic, chopping wood, carrying
wood, working in a paint factory. Uh
every summer since that time I was 12, I
had to had a job. Uh I worked at a gun
range. I literally cleaned out
industrial vats with a gigantic brush.
Um
and you go through all of that and uh
people make fun of you. they give you a
hard time if you're being weak a wuss
and it just like over time it toughens
you up and to be honest I'm glad like
when I think of all the things that have
helped me be successful not just in work
in my marriage in every aspect of my
life it has been because you say okay I
want this thing and I know that I'm
gonna have to work hard to get it and
this is not going to be easy this is
going to be very difficult and when you
don't have that gear in you of okay,
this is a storm. I am going to weather
it. In fact, I'm going to rise above
this. I'm going to shine. I'm going to
make magic happen. That that is a
miserable place to live. But watching
somebody break down over having to work
an eight and a half hour shift just
like, bro. literally the other day, and
I understand not everybody wants this
life, and I want people to have a life
that's good for them. Not just the life
they want, cuz sometimes people want an
absolutely ridiculous life, but a life
that actually leads them to fulfillment.
However, the other day by 1000 a.m.,
this is a true story. I had worked a
seven and a half hour day.
So by 10:00 a.m., dude, so you can
imagine with my value system seeing
somebody break down and cry because
there's a bunch of people in line. I'm
just like, what is happening right now?
All right, I'm split cuz as a father, I
am the most do it, do it the hard way,
take the stairs, like go work. Like I
love everything about that. But I'm also
realizing that like my daughter is
sensitive. She is emotionally more
mature or I would say aware than I was
at my age. Like when I was younger, I
wasn't allowed to have emotions. Like
what? Go clean your room. Like what? Go
do this thing. Like don't try to
negotiate with me. Like there is no
negotiation. I do see that this new
generation, they are different. They
work different. They have different
ethics. They have a different north
star. As much as I want to tell this
person to, you know, shut up and like
suck it up, I feel like they're gonna
then become a manager and they're gonna
allow their employees like, "No, it's
okay. You deserve." And the the
softening is going to keep happening.
Yes. And they're going to get run over
by China. Run over. They're going to get
their lunch
eaten. And oh, look, I I love people and
I want to see people do well, but the
reality is people have got to want to
get tough. They have to want to have a
gear in them where it's like, yes, I can
withstand this. Yes, I can face this.
Yes, this is going to be grueling. This
is going to be difficult. And I'm just
going to march forward. And I want that
for them more than I want that for me.
Like this there there are two aspects of
this. Admittedly, I do not want to live
in a world where America is full of
soft, lazy cryb babies. I think it's
[ __ ] terrible and it does not make me
feel good uh about the team I'm on. So,
I want to inspire people. I want to get
them to want to be tougher. Forget that
part. That that's a very minor part of
all this for me.
I'm very motivated by seeing that moment
where people wake up and realize that
they can do a lot more than they thought
they could. For that reason, I want to
see people like buckle down and be like,
"Oh, damn. I can really do something."
But nobody ever told that kid,
uh, the things you're going to try are
going to be
hard. You are going to have to get
better than other people. You are going
to have to outperform them. Jaco Willink
has one of the best reactions. Whenever
something goes wrong, he's just good.
Uh, there's only five people. Somebody
called in sick. Good. The manager ripped
the schedule down and they just didn't
want anybody to see that they weren't
coming in. Good. Because honestly, good.
That means your manager sucks, dude.
This is your shot. Like, you can rise
up. If if you rise up to manager and
they're like, I don't want to be at a
[ __ ] Starbucks. Great. Go out on your
terms. Climb up, demand more money, get
what you want, work the exact number of
days where you're like, I want to be
here. And the second you don't, you turn
in your resignation. Thank you very
much. They won't want you to leave
because you've been such a badass. You
are in control of your life. You can go
where you want to go. You can do what
you want to do. But if you're the kid in
the back room that's crying because your
manager is bad, dude, that is
ridiculous. And I don't care if you're a
man or woman. That to me does not
matter. Do I give women a different look
than I give men? Of course I do. But at
the end of the day, if my wife turned
into a puddle like that over having to
work eight and a half hours, I'd be
like, "Yo, I would feel some kind of way
about that." Because look, even if you
just want a traditional wife, kids are
going to test the [ __ ] out of you.
You're going to get Dude, kids are like
little terrorists. And if you break that
easy, no way. Kid, the kids are going to
run you over. Plus, I was raised by a
woman who just did not play. She broke a
wooden spoon on my ass. She once chased
me down, had time to stop, pick up a
tree branch, catch me, and spank me with
it. People are going to say that my mom
abused me. I assure you, she did not. My
mom is amazing. And I knew that I was
loved. Up, down, left, right, B, a
select art. I never questioned it. Not
when she was yelling at me. Never. But
man, my mom was like, there is a
straight and narrow, and the straight
and narrow you shall walk. Enough said.
Gee, that was a mic drop there. Um, I'm
rooting for the the person, the the
them. And I hope that they figure it
out. The them. I hope that they figure
it out. Very generous. All right, that's
all. As we all do. But boys and girls,
sometimes life is going to be hard. And
the great joy of life is rising to meet
that challenge. And speaking of rising
to meet a challenge, if you have not
already, be sure to subscribe. And if
you're not watching our lives, make sure
you join us at 6:00 a.m. Pacific time
Wednesday and Friday. We will see you
there. Till next time, my friends, be
legendary. Take care. Peace. If you like
this conversation, check out this
episode to learn more. America is in
danger because for decades, merit was
exchanged for fairness. It's a beautiful
impulse, but a terrible strategy. Our
institutions got bloated, dumb, and
soft. And culturally, we lost the will
to build right as China became a glo