WEBVTT - Part Three: How Peter Thiel Became the Gravedigger of Democracy

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<v Speaker 1>Also media, What's dying in darkness? My Democracy? I'm Robert

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<v Speaker 1>Evans hosted Behind the Bastards. We're coming on recording this

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<v Speaker 1>the day that The Washington Post is getting attacked online

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<v Speaker 1>for not endorsing anybody in the election, which I'm grateful

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<v Speaker 1>for because it means that no one hasn't noticed that

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<v Speaker 1>Cool Zone has also not put in our endorsement for

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<v Speaker 1>the twenty twenty four election, which is really good because

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<v Speaker 1>every year, you know, we advise people to vote for

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<v Speaker 1>the same man, Richard Milhouse Nixon. Now to talk about

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<v Speaker 1>our greatest president and I think our greatest future president.

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<v Speaker 1>Noah Shackman, Noah, how are you feeling? Do you think

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<v Speaker 1>Nixon's got it this year? You think he's going to

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<v Speaker 1>pull out a win.

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<v Speaker 2>I thought you were saying I was your greatest future president.

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<v Speaker 1>You could be, You could be, but you need to

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<v Speaker 1>be a little more Nixonian. You know, have you considered

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<v Speaker 1>trying to destroy the world while drunk and only Henry

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<v Speaker 1>Kissinger being the one that can stop you?

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<v Speaker 2>No? I haven't, so I guess I'm not qualified.

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<v Speaker 1>Yeah, that is a bummer. No. You are a contributing

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<v Speaker 1>writer at Rolling Stone, contributing editor at Wired, and you're

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<v Speaker 1>here to talk about pe Tizzy, which Peter TiAl does

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<v Speaker 1>not go by. And well, probably if he was not

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<v Speaker 1>committed to destroying us after the first two episodes, that

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<v Speaker 1>nickname is probably going to get us attacked.

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<v Speaker 2>Yeah, you're definitely yeah.

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<v Speaker 1>We're done. We're done here everybody. Yeah.

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<v Speaker 2>Yeah.

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<v Speaker 1>How do you feel about the news today? Is it good?

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<v Speaker 1>You happy? Happy about the news?

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<v Speaker 2>The Washington postling.

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<v Speaker 1>I don't know whatever news is happening today. I assume

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<v Speaker 1>something else went down, right, somebody died.

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<v Speaker 2>I'm excited. The Yankees are playing in the world. Cheers.

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<v Speaker 1>That's good. That's good. Bill Clinton called Kerry Lake attractive.

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<v Speaker 1>It's been an exciting week for everybody.

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<v Speaker 2>I mean, you know, tiger can't change the stripe.

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<v Speaker 1>From yeah, yeah, if we want to call him a tiger,

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<v Speaker 1>yeah yeah, so uh yeah, let's uh, I guess let's

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<v Speaker 1>get back into the old Peter Teal game. I'm I'm

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<v Speaker 1>I'm ready to talk about him. You're ready to talk

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<v Speaker 1>about him? Yeah, I will bums away. If you're a journalist,

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<v Speaker 1>which you know two thirds of us are in this call.

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<v Speaker 1>December seventh, two thousand and seven ought to be a

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<v Speaker 1>date that lives an infamy. That was my my Pearl

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<v Speaker 1>Harbor joke, But it's also a joke referencing the Gawker lawsuit,

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<v Speaker 1>because that is the day that Gawker, via its tech

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<v Speaker 1>website Valley Wag published an article with the title Peter

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<v Speaker 1>Teal is totally gay people Now Valley Wag, which was

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<v Speaker 1>you know, the again, like the tech imprint of Gawker

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<v Speaker 1>had been writing about Peter Teel for a while, and

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<v Speaker 1>they had published articles kind of insinuating that Peter was

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<v Speaker 1>gay for quite a while. The company founder, Nick Denton, was,

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<v Speaker 1>to his credit, someone who recognized early on that Peter

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<v Speaker 1>was not just another rich investor guy, but somebody who

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<v Speaker 1>was amassing significant power and had a weird ideology and

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<v Speaker 1>should be covered. Unfortunately, the downside of it was that

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<v Speaker 1>Nick's instincts were, you know, this was a messy time

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<v Speaker 1>for digital media, shall we say, and Valleywag was not

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<v Speaker 1>at this point entirely conducting itself in the best traditions

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<v Speaker 1>of a journalistic enterprise. Right. And while I think an

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<v Speaker 1>argument can be made, a strong one that Peter being gay,

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<v Speaker 1>given his funding of the Republican Party, is to a

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<v Speaker 1>degree relevant to the public interest. The way in which

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<v Speaker 1>Valley Wag reported on this initially was not a public

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<v Speaker 1>interest story, right, Like that title, Peter Teal is to that,

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<v Speaker 1>that's not a we're we're getting out necessary information title, right,

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<v Speaker 1>that's kind of that's being extremely caddy right.

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<v Speaker 3>By the way, our guest today is no chef.

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<v Speaker 2>And why are you slipping me in on the caddy

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<v Speaker 2>outing here?

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<v Speaker 1>I introduced him this this much.

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<v Speaker 2>I haven't Catalie outed anybody in the Yeah.

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<v Speaker 3>Robert definitely did forget to introduce you last time, but

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<v Speaker 3>we redid it. We did it, and it was fine.

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<v Speaker 1>I got it.

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<v Speaker 3>This time gets his credits because.

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<v Speaker 4>They're thank you get your.

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<v Speaker 1>Credits, Robert.

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<v Speaker 3>I would credit you too if I could.

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<v Speaker 1>Do you remember this, Noah, when when Gawker outed Peter,

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<v Speaker 1>because I didn't catch it really at the time, but

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<v Speaker 1>I was a baby at this point.

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<v Speaker 2>I didn't. I didn't either, but I did know, you know,

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<v Speaker 2>the Nick Dent and Crewe and Nick a little bit

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<v Speaker 2>back then, and honestly, so many of the people involved

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<v Speaker 2>were so fucking whacked out on powders and pills you

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<v Speaker 2>probably forgot they even did it.

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<v Speaker 1>All of the money that was going around in digital

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<v Speaker 1>media back then. I think it would have been hard

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<v Speaker 1>not to be whacked out on powders and pills, but

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<v Speaker 1>you could. This is not like the Post wouldn't have

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<v Speaker 1>done this reporting in this way, right, or the New

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<v Speaker 1>York Times. You can think of that what you will,

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<v Speaker 1>but like this was this was a little messy. I

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<v Speaker 1>think probably. I mean, Peter never sues over this, but

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<v Speaker 1>this is the inciting incident of what he gets angry

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<v Speaker 1>at them. So I don't think this would have been

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<v Speaker 1>something that could have been adjudicated in court. But it

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<v Speaker 1>is something that if you're kind of going on, where

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<v Speaker 1>does Peter Teal have a right to privacy? Like if

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<v Speaker 1>you're arguing that because of his advocacy, you know this

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<v Speaker 1>is relevant, which I think is an argument that can

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<v Speaker 1>be made strongly. You probably want to be a little

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<v Speaker 1>bit clearer in making that argument than Peter Teal was

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<v Speaker 1>totally gay folks. Yeah yeah, yeah, Now again, I I

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<v Speaker 1>that's that. I don't think like the fundamental issue here

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<v Speaker 1>is that they out at him. I think it's just

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<v Speaker 1>more that like, yeah, it's kind of a kind of

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<v Speaker 1>a grotty way to do it. Do you say grody?

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<v Speaker 1>I did? I did I am a high school girl

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<v Speaker 1>in two thousand and four. Wow, late nineties, right, yeah.

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<v Speaker 2>I thought it was more of an eighties thing, but hey,

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<v Speaker 2>you know.

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<v Speaker 1>Yeah, it's probably more of an eighties thing. Yeah. So

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<v Speaker 1>the you know, this had been Valleywag had been kind

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<v Speaker 1>of poking at Peter for a while, right. They had

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<v Speaker 1>been making before that article some kind of veiled claims

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<v Speaker 1>about him being gay, and Valley Wag is kind of

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<v Speaker 1>certainly writing more on like the what do you call it,

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<v Speaker 1>tabloid end of things. Right at this period of time,

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<v Speaker 1>Goker is going to professionalize in the period you know,

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<v Speaker 1>before they get sued into oblivion by Peter, But in

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<v Speaker 1>two thousand and seven they are still very much like

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<v Speaker 1>new kids on the block. We don't really give a shit. Now.

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<v Speaker 1>The question that comes to if you've read about Peter

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<v Speaker 1>Teal is like, why did he get so offended at

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<v Speaker 1>the fact that he was outed? Because by all accounts,

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<v Speaker 1>he was pretty open in his personal life, Like, it

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<v Speaker 1>doesn't seem like this shocked even his like Republican colleagues,

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<v Speaker 1>people who had gone to Teal parties, who like knew

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<v Speaker 1>him personally, who had got to his nightclub, like he

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<v Speaker 1>didn't like, go to extreme lengths to hide this fact

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<v Speaker 1>about himself. Instead, what seems to have enraged him was

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<v Speaker 1>not the specifics of the fact that he was outed,

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<v Speaker 1>but this line from the Valley Wag article. The only

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<v Speaker 1>thing that's strange about teal sexuality. Why on earth was

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<v Speaker 1>he so paranoid about its discovery for so long? Now

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<v Speaker 1>I wouldn't really that didn't not line doesn't stick out

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<v Speaker 1>to me. But here's from an article in The Atlantic

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<v Speaker 1>which interviewed Ryan Holiday, who wrote a book about the

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<v Speaker 1>Gaker case. Here's here's what Ryan said about why that line,

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<v Speaker 1>in particular like tweaked Teal. He thought Denton was implying

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<v Speaker 1>that Peter had psychological problems. When you read the comment,

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<v Speaker 1>it doesn't feel that way. But Teal thought, here's the

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<v Speaker 1>publisher of a media outlet, not just a blogger, going

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<v Speaker 1>after me. The blog post felt like the first article

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<v Speaker 1>after years of negative Golcker coverage against Teal.

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<v Speaker 2>I mean, look, I do think it like it feels

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<v Speaker 2>weird when you're on the other side of it, And

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<v Speaker 2>I think, like you know, for those of us like

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<v Speaker 2>write and broadcast right it like you wanna you sometimes

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<v Speaker 2>want to take a spin on the other side of

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<v Speaker 2>the camera, so to speak, and see how that stuff feels.

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<v Speaker 2>On the other hand, like what's he doesn't seem to

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<v Speaker 2>have made it a secret, doesn't seem to have been

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<v Speaker 2>a big deal. On the other other hand, you know,

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<v Speaker 2>I think outing people's fucked up and yeah and so

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<v Speaker 2>and I feel like, you know, people's sexuality is like

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<v Speaker 2>their own, uh is their own choice. On the other

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<v Speaker 2>other other hand, like you know, if you're going to

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<v Speaker 2>embrace some weirdo, like you know, retro seventeenth century ideology

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<v Speaker 2>about really and empower, then you know, then you might

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<v Speaker 2>have to grapple with its inconsistencies and hypocrisies. So, I

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<v Speaker 2>don't know, it's.

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<v Speaker 1>A tough one, Yeah, it is. It is kind of

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<v Speaker 1>a tough like this is I think a useful thing

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<v Speaker 1>for people who are interested in the ethics of journalism

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<v Speaker 1>to comment on. I don't think it's interesting like the

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<v Speaker 1>specifics of why Peter gets angry, this idea that he

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<v Speaker 1>was mostly pissed that Goker had maybe insinuated that he

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<v Speaker 1>was not emotionally balanced. Now, the other argument you'll hear

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<v Speaker 1>here is that the primary real reason Peter was pissed

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<v Speaker 1>about this is that it was fine for him to

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<v Speaker 1>be gay and kind of open about it in his

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<v Speaker 1>private life with the people who hung out around him,

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<v Speaker 1>but not publicly open about it because who he really

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<v Speaker 1>wanted to keep this from or to re maintain plausible

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<v Speaker 1>deniability with is the Saudis Right, he has a lot

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<v Speaker 1>of business involvement in the Middle East and the Immirates

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<v Speaker 1>as well as in Saudi Arabia, and he didn't want

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<v Speaker 1>to be an out gay man traveling to in dealing

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<v Speaker 1>with these countries, right Like, he felt that that would

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<v Speaker 1>be damaging to his business interests. So that's the other

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<v Speaker 1>argument that you'll hear, and I'm sure it's probably a

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<v Speaker 1>number of things. In any case, it doesn't This is

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<v Speaker 1>like I think when I first was aware of this case,

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<v Speaker 1>most of the casual reporting was like, you know, Peter

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<v Speaker 1>Thiel got involved in wanting to sue Gawker and do

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<v Speaker 1>oblivion because they outed him, right like, that was the

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<v Speaker 1>DDT A to B. I think it's a little less

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<v Speaker 1>direct than that, And I think this is the picture

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<v Speaker 1>Chafkin page paints, the picture holiday paints and holidays. The

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<v Speaker 1>guys really seems to have gone into this. The most

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<v Speaker 1>is that this is what kind of gets Gawker on

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<v Speaker 1>Peter's radar and annoys him. But he's not committed to

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<v Speaker 1>taking them down yet, right, Like that's not going to

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<v Speaker 1>happen for years and years. So this is just kind

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<v Speaker 1>of like the beginning of the conflict that they have

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<v Speaker 1>in each other. So we're we're gonna move on here

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<v Speaker 1>and later we will come back to the story, but like, yeah,

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<v Speaker 1>this is this is how he's kind of kind of

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<v Speaker 1>starting to get angry at Gawker. And I do think

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<v Speaker 1>it's useful to holiday suggests that there's another reason why

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<v Speaker 1>Peter's pissed as a result of this, and it has

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<v Speaker 1>more to do philosophically with the kind of reporting that

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<v Speaker 1>Gawker is doing and what they represent about the media

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<v Speaker 1>in the digital age that Peter is kind of personally

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<v Speaker 1>repelled by, maybe even frightened of. And I'm going to

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<v Speaker 1>quote from an interview that he did again here from

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<v Speaker 1>two thousand and seven up until twenty twelve, Denton was

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<v Speaker 1>on a devil may care right of breaking rules as

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<v Speaker 1>a media publisher, and that was so diametrically opposed to

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<v Speaker 1>Peter's vision of quiet individuality. This belief that weirdos needed

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<v Speaker 1>to be left alone if they were going to change

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<v Speaker 1>the world. Peter saw that Gawker would punish people for

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<v Speaker 1>that weirdness.

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<v Speaker 2>What yeah, I'm.

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<v Speaker 1>Yeah, I'm not sure how much. I mean, it's perfectly

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<v Speaker 1>fine for it's perfectly reasonable on Holiday's part to be like, yeah,

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<v Speaker 1>Peter's doing this because that's just how he feels. I

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<v Speaker 1>do think that's a very silly like.

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<v Speaker 2>Give me a break. Yeah, what was teals uh Stanford

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<v Speaker 2>paper again? What were they doing?

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<v Speaker 1>Yeah? Yeah, the Stanford where they were like outing professors

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<v Speaker 1>and stuff based on their political ideology and like his

0:12:12.840 --> 0:12:16.640
<v Speaker 1>best friend who wrote those anti AIDS columns like screaming

0:12:16.640 --> 0:12:20.440
<v Speaker 1>about how he hopes that this fucking gay professor dies

0:12:20.480 --> 0:12:21.760
<v Speaker 1>of AIDS or whatever, like.

0:12:21.800 --> 0:12:25.720
<v Speaker 2>Yeah, right, and so now, yeah, worried about what exactly?

0:12:25.800 --> 0:12:28.880
<v Speaker 1>Yeah, yeah, that that Dockers making it unsafe to be weird,

0:12:29.120 --> 0:12:33.800
<v Speaker 1>I you know, and Holidays more sympathetic to Peter in

0:12:33.880 --> 0:12:37.040
<v Speaker 1>this and that I then I certainly come out of

0:12:37.120 --> 0:12:40.520
<v Speaker 1>like if that is how Peter justified this to himself,

0:12:41.000 --> 0:12:46.800
<v Speaker 1>it's stupid or maybe it's just uh Ryan kind of

0:12:46.840 --> 0:12:49.040
<v Speaker 1>needing to find a more reasonable reason.

0:12:49.080 --> 0:12:53.320
<v Speaker 2>I think there's yeah, put it in a different way, man, Like, Okay,

0:12:53.360 --> 0:12:55.120
<v Speaker 2>I've been as you can see from the gray hair,

0:12:55.120 --> 0:12:57.360
<v Speaker 2>I've been involved in journalism for a long time, and

0:12:57.360 --> 0:12:59.440
<v Speaker 2>I've been involved in tech journalism for a long time.

0:13:00.080 --> 0:13:06.199
<v Speaker 2>Back then was like the time of maximum subservience of

0:13:06.320 --> 0:13:07.160
<v Speaker 2>tech journalism.

0:13:07.240 --> 0:13:10.439
<v Speaker 1>It was a critical industry. Yeah, not at all.

0:13:10.520 --> 0:13:13.480
<v Speaker 2>I mean, like, if you think the political press of

0:13:13.559 --> 0:13:17.920
<v Speaker 2>twenty twenty five towards future press is bad, this is like,

0:13:18.800 --> 0:13:20.920
<v Speaker 2>you know, that would be a pale imitation of the

0:13:20.920 --> 0:13:24.560
<v Speaker 2>Silicon Valley press of that era. And so I think

0:13:24.679 --> 0:13:27.439
<v Speaker 2>Valley Bay Wagon its own you know, fucked up, weird

0:13:27.440 --> 0:13:29.720
<v Speaker 2>old way was like the only people that were like

0:13:29.960 --> 0:13:33.880
<v Speaker 2>bothering to penetrate or interrogate that or one of the

0:13:33.880 --> 0:13:34.800
<v Speaker 2>few people.

0:13:34.600 --> 0:13:38.120
<v Speaker 1>They weren't socatively yeah, just completely subservient.

0:13:38.760 --> 0:13:42.280
<v Speaker 2>Yeah, now they were reflexively gross in some other ways.

0:13:42.280 --> 0:13:44.960
<v Speaker 2>And I said, yeah, yeah, a friend of mine worked

0:13:44.960 --> 0:13:48.439
<v Speaker 2>on that. But like, you know, I feel like some

0:13:48.480 --> 0:13:51.520
<v Speaker 2>of it was just like how dare you actually, you know,

0:13:51.679 --> 0:13:57.160
<v Speaker 2>not follow the rules of obeisance here? And how dare

0:13:57.160 --> 0:14:00.520
<v Speaker 2>you not kiss my ass? That feels like more part

0:14:00.559 --> 0:14:00.760
<v Speaker 2>of it.

0:14:01.280 --> 0:14:04.480
<v Speaker 1>Yeah, yeah, I think that's probably like, I think that's

0:14:04.520 --> 0:14:06.480
<v Speaker 1>probably a fair because this is actually what I came

0:14:06.559 --> 0:14:09.439
<v Speaker 1>up in tech journalism, And yeah, it was a completely

0:14:10.240 --> 0:14:12.520
<v Speaker 1>like Valleywag was one of the rare places where you

0:14:12.559 --> 0:14:15.080
<v Speaker 1>would get people who were trying to be confrontational to

0:14:15.160 --> 0:14:18.440
<v Speaker 1>these guys who were kind of worshiped at the time.

0:14:18.480 --> 0:14:21.520
<v Speaker 1>You would have to go far to find really critical

0:14:21.560 --> 0:14:26.080
<v Speaker 1>reporting on Zuckerberg, on fucking Steve Jobs, on a guy

0:14:26.240 --> 0:14:28.560
<v Speaker 1>like Teal. In this period of time, like two thousand

0:14:28.560 --> 0:14:30.760
<v Speaker 1>and seven is when that Forbes article on the PayPal

0:14:30.840 --> 0:14:33.280
<v Speaker 1>mafia that we quoted from comes out where they're like

0:14:34.400 --> 0:14:36.320
<v Speaker 1>taking a picture of Peter and all of his friends

0:14:36.320 --> 0:14:38.800
<v Speaker 1>and framing it like it's a like a film, like

0:14:38.920 --> 0:14:43.600
<v Speaker 1>a poster and stuff. So yeah, I do think and

0:14:43.640 --> 0:14:46.280
<v Speaker 1>I do think that's important context for like, we don't

0:14:46.280 --> 0:14:49.320
<v Speaker 1>want to I'm not like trying to deny how gross

0:14:49.440 --> 0:14:51.680
<v Speaker 1>a lot of the especially today, a lot of like

0:14:51.760 --> 0:14:54.000
<v Speaker 1>the way value Wig framed things was, but it is

0:14:54.040 --> 0:14:56.440
<v Speaker 1>important to note also the value of what they were

0:14:56.480 --> 0:14:59.880
<v Speaker 1>doing that like, well, at least they were confronting these guys,

0:15:00.080 --> 0:15:02.000
<v Speaker 1>you know, And it was it was two thousand and seven,

0:15:02.040 --> 0:15:04.760
<v Speaker 1>it was a different era. Digital media was new. We

0:15:04.840 --> 0:15:07.480
<v Speaker 1>can talk about like what the ideal way to confront

0:15:07.480 --> 0:15:09.640
<v Speaker 1>them would have been but like at least they were,

0:15:10.840 --> 0:15:12.800
<v Speaker 1>so I don't know, it's it's it's a it's a

0:15:12.800 --> 0:15:17.520
<v Speaker 1>messy time. Nobody's nobody. Nobody handled it perfectly now in

0:15:17.640 --> 0:15:21.120
<v Speaker 1>terms of how Chafkin interprets this, because Chafkin is a

0:15:21.160 --> 0:15:26.680
<v Speaker 1>lot it gives a lot less slack to Peter, and

0:15:26.960 --> 0:15:30.960
<v Speaker 1>his argument is that his argument is that like, after

0:15:31.400 --> 0:15:34.280
<v Speaker 1>this Gawker article comes out, Peter is angry but at

0:15:34.280 --> 0:15:36.480
<v Speaker 1>the same sense of the but at the same time

0:15:36.560 --> 0:15:39.760
<v Speaker 1>he's he's kind of like liberated by the fact that

0:15:39.800 --> 0:15:42.720
<v Speaker 1>he's been outed now, and that this is a big

0:15:42.760 --> 0:15:45.960
<v Speaker 1>part of why he becomes such an open not just

0:15:46.080 --> 0:15:48.680
<v Speaker 1>in funding of the far right, but funding of a

0:15:48.680 --> 0:15:52.600
<v Speaker 1>lot of his weird libertarian pet causes is now that

0:15:52.640 --> 0:15:54.920
<v Speaker 1>he has been outed, like, well, you know, maybe it's

0:15:54.920 --> 0:15:56.760
<v Speaker 1>gonna fuck with some of my business in the Middle East,

0:15:56.760 --> 0:15:59.680
<v Speaker 1>but at least I can be who I am openly now.

0:16:00.680 --> 0:16:02.960
<v Speaker 1>And I think there's a good case to be made

0:16:02.960 --> 0:16:05.720
<v Speaker 1>for that because it's after this article comes out that

0:16:05.800 --> 0:16:09.080
<v Speaker 1>Peter starts, for example, sinking huge amounts of money into

0:16:09.160 --> 0:16:12.600
<v Speaker 1>c steading, which is an art idea championed by weird

0:16:12.640 --> 0:16:15.360
<v Speaker 1>libertarians who wanted to build their own cities, independence of

0:16:15.400 --> 0:16:19.640
<v Speaker 1>the government in the ocean. Peter backs the Sea Steading Institute.

0:16:19.720 --> 0:16:22.040
<v Speaker 1>He starts funding these guys who are doing like little

0:16:22.080 --> 0:16:25.120
<v Speaker 1>burning Man style events which actually do sound kind of cool,

0:16:25.160 --> 0:16:27.360
<v Speaker 1>where they're like living in the sea or rivers and

0:16:27.400 --> 0:16:30.320
<v Speaker 1>stuff for days at a time. And he's funding this

0:16:30.320 --> 0:16:34.640
<v Speaker 1>this libertarian uh you know, kind of fail sun dude

0:16:34.640 --> 0:16:40.320
<v Speaker 1>who's a major c set steading advocate, and he's giving

0:16:40.400 --> 0:16:42.640
<v Speaker 1>like speeches and stuff. He's actually more into this. This

0:16:42.720 --> 0:16:44.960
<v Speaker 1>is not just because when you've got Teel money you

0:16:44.960 --> 0:16:47.840
<v Speaker 1>could just be a dilettante about something that you're casually

0:16:47.880 --> 0:16:51.360
<v Speaker 1>interested in. Peter is like giving speeches and writing essays

0:16:51.720 --> 0:16:55.040
<v Speaker 1>about how sea steading he thinks might hold some of it.

0:16:55.040 --> 0:16:59.280
<v Speaker 1>It's a sea yeah. Yeah, yeah, like homesteading, but on

0:16:59.360 --> 0:17:01.440
<v Speaker 1>the sea. Sea steading.

0:17:01.560 --> 0:17:06.840
<v Speaker 2>Yeah. Look, tell me again, how did we get from

0:17:07.040 --> 0:17:10.720
<v Speaker 2>Peter toe is totally gay to Peter Teele is totally

0:17:10.720 --> 0:17:11.320
<v Speaker 2>sea stetting.

0:17:11.560 --> 0:17:14.360
<v Speaker 1>Well, Peter Teal Peter Teel, who has now been revealed

0:17:14.359 --> 0:17:17.320
<v Speaker 1>as gay, can be revealed can reveal himself also as

0:17:17.359 --> 0:17:20.480
<v Speaker 1>a weirdo libertarian and be like, look, you know, I've

0:17:20.480 --> 0:17:22.639
<v Speaker 1>been outed on this thing that I actually wanted to

0:17:22.680 --> 0:17:24.440
<v Speaker 1>keep quiet, So I might as well be open about

0:17:24.440 --> 0:17:26.840
<v Speaker 1>the fact that I think that we can replace governments

0:17:26.840 --> 0:17:31.840
<v Speaker 1>by living on the ocean and building floating cities. Why not?

0:17:34.440 --> 0:17:38.520
<v Speaker 2>Again, Like, I feel like at every step it's like, dude,

0:17:38.520 --> 0:17:42.320
<v Speaker 2>this guy is like stuck in like second semester freshman year. Yeah,

0:17:42.480 --> 0:17:46.719
<v Speaker 2>it's like he like took some bong hit that like

0:17:46.800 --> 0:17:48.720
<v Speaker 2>he never quite recovered from.

0:17:49.000 --> 0:17:51.440
<v Speaker 1>We all took a bong hit we didn't quite recover from. No,

0:17:51.680 --> 0:17:55.040
<v Speaker 1>let's not judge him for that is charged.

0:17:55.480 --> 0:17:59.440
<v Speaker 2>I'm just saying that, like his particular like techno libertarian

0:17:59.600 --> 0:18:03.000
<v Speaker 2>you being dude, Yeah, what if we homestead it on

0:18:03.080 --> 0:18:05.760
<v Speaker 2>the sea? Yeah, and then no government could touch us?

0:18:05.800 --> 0:18:06.640
<v Speaker 2>We could be pirates?

0:18:06.680 --> 0:18:07.879
<v Speaker 1>Are this is?

0:18:08.080 --> 0:18:08.919
<v Speaker 2>Are you kidding me?

0:18:09.480 --> 0:18:11.359
<v Speaker 1>This is the toughest part of the Peter Teel story

0:18:11.359 --> 0:18:13.520
<v Speaker 1>for me here because I have to report on this

0:18:13.600 --> 0:18:17.320
<v Speaker 1>and I don't like Peter obviously. I wrote like seventeen

0:18:17.359 --> 0:18:20.760
<v Speaker 1>eighteen thousand words on why he's a bad guy. I also,

0:18:21.880 --> 0:18:23.919
<v Speaker 1>I think this kind of rules. I do think it

0:18:24.080 --> 0:18:27.119
<v Speaker 1>kind of rules. I don't like it as a political thing.

0:18:27.119 --> 0:18:29.399
<v Speaker 1>It's like we're going to replace all the governments. But

0:18:29.480 --> 0:18:32.600
<v Speaker 1>I love the idea of I liked. Look, I watched

0:18:32.680 --> 0:18:35.440
<v Speaker 1>too much SeaQuest as a kid to not be attracted

0:18:35.440 --> 0:18:38.320
<v Speaker 1>to the idea of taking to the ocean to build Europe.

0:18:38.320 --> 0:18:41.480
<v Speaker 1>It's cool. I'm sorry, it's a cool idea. I like

0:18:42.119 --> 0:18:47.440
<v Speaker 1>fucking forgive me, wow, I like it. I think it's

0:18:47.480 --> 0:18:50.439
<v Speaker 1>neat what I'm sorry?

0:18:50.480 --> 0:18:52.400
<v Speaker 2>What is se Quest? See?

0:18:52.640 --> 0:18:55.200
<v Speaker 1>What is c God? Alien?

0:18:55.240 --> 0:18:56.120
<v Speaker 3>Alien four?

0:18:56.160 --> 0:18:59.520
<v Speaker 1>Albelievable? No. So back in like the mid to late

0:18:59.640 --> 0:19:03.480
<v Speaker 1>nineties when after after Star Trek to the Next Generation

0:19:03.680 --> 0:19:05.560
<v Speaker 1>really blew up when it was kind of like season

0:19:05.560 --> 0:19:08.200
<v Speaker 1>three or so starting to hit its stride, a TV

0:19:08.240 --> 0:19:11.000
<v Speaker 1>show that was basically Star Trek the Next Generation but

0:19:11.080 --> 0:19:13.119
<v Speaker 1>set in a future where humans had taken to the

0:19:13.119 --> 0:19:16.879
<v Speaker 1>ocean to like expand their living territory. And it was

0:19:17.200 --> 0:19:21.280
<v Speaker 1>the lead actor, like their picard was Roy Scheider, the

0:19:21.280 --> 0:19:24.399
<v Speaker 1>sheriff from Jaws, and he like ran this giant like

0:19:24.880 --> 0:19:28.960
<v Speaker 1>submarine city that traveled around and like kept the peace

0:19:29.000 --> 0:19:32.199
<v Speaker 1>in the underwater frontier. It was a good show. It

0:19:32.240 --> 0:19:33.120
<v Speaker 1>was a good show.

0:19:33.359 --> 0:19:34.959
<v Speaker 2>Yeah, Jaws on it too.

0:19:35.680 --> 0:19:38.720
<v Speaker 1>No, No, But there was a dolphin character. There was

0:19:38.760 --> 0:19:41.159
<v Speaker 1>a talking dolphin. There was a talking dolphin which there

0:19:41.240 --> 0:19:43.760
<v Speaker 1>was supposed to be in the original Star Trek the

0:19:43.760 --> 0:19:46.880
<v Speaker 1>next Generation. I think there was watched that was something. Yeah,

0:19:46.880 --> 0:19:50.760
<v Speaker 1>because Gene Roddenberry was as he was a believer that like,

0:19:51.280 --> 0:19:54.120
<v Speaker 1>once we have a nuclear war, dolphins and humans will

0:19:54.200 --> 0:19:58.040
<v Speaker 1>like ascend together. Oh yeah, yeah, you might have been

0:19:58.080 --> 0:20:00.200
<v Speaker 1>friends with that guy who raped that dolphin. I'm not

0:20:00.280 --> 0:20:02.719
<v Speaker 1>saying he was in favor of raping dolphins, but there

0:20:02.760 --> 0:20:05.359
<v Speaker 1>was a John C. Lily raped a dolphin. Yeah, what

0:20:05.600 --> 0:20:07.120
<v Speaker 1>well do you guys know about John C. Lily?

0:20:07.800 --> 0:20:09.360
<v Speaker 2>Peter Teele raped a dolphin.

0:20:09.640 --> 0:20:12.720
<v Speaker 1>Yes, that is the allegation we're making on behind the bastards.

0:20:12.720 --> 0:20:15.800
<v Speaker 1>Thank you Noah for stating it, because now you you

0:20:16.000 --> 0:20:19.440
<v Speaker 1>and the iHeartRadio Corporation are both on are both on

0:20:19.480 --> 0:20:26.239
<v Speaker 1>the hook for making that statement for a dollar. To

0:20:26.240 --> 0:20:28.600
<v Speaker 1>be honest, I think the guys you think dolphins are

0:20:28.680 --> 0:20:31.240
<v Speaker 1>equal to human beings. I don't think Peter Teel cares

0:20:31.280 --> 0:20:34.919
<v Speaker 1>about dolphins very much, else he would have different politics.

0:20:35.160 --> 0:20:37.280
<v Speaker 2>Dolphins are cool, although I also.

0:20:37.080 --> 0:20:39.560
<v Speaker 1>Don't think he's molested a dolphins. So you know, some

0:20:39.600 --> 0:20:43.200
<v Speaker 1>of those pro dolphin guys did where do you stand

0:20:43.200 --> 0:20:49.120
<v Speaker 1>on molesting dolphins? Email Sophie, do you have any email technically, Okay, well,

0:20:49.359 --> 0:20:50.200
<v Speaker 1>I'm not going to read it.

0:20:50.119 --> 0:20:51.600
<v Speaker 3>The contact page on our website.

0:20:52.560 --> 0:20:54.960
<v Speaker 1>So we've hit about the point of two thousand and

0:20:55.000 --> 0:20:58.000
<v Speaker 1>eight or so, Peter is getting into funding Sea Steading.

0:20:58.080 --> 0:21:00.399
<v Speaker 1>He's getting more open, he's starting to put out more

0:21:00.440 --> 0:21:02.120
<v Speaker 1>money to like libertarian causes.

0:21:02.320 --> 0:21:05.280
<v Speaker 2>Dolphins allowed on the sea stead you know, I.

0:21:05.280 --> 0:21:08.640
<v Speaker 1>Think that's going to vary from if I'm cea Steading. Yes,

0:21:08.840 --> 0:21:12.560
<v Speaker 1>dolphins are independent citizens with independent rights, but also they

0:21:12.560 --> 0:21:14.480
<v Speaker 1>have to abide by our laws, which is going to

0:21:14.520 --> 0:21:18.040
<v Speaker 1>be hard for some dolphins because some dolphins are scum.

0:21:18.280 --> 0:21:24.800
<v Speaker 1>But that's a separate question. What So, this is right

0:21:24.840 --> 0:21:27.080
<v Speaker 1>around the time two thousand and eight or so that

0:21:27.160 --> 0:21:30.200
<v Speaker 1>Peter Thiel starts reading the work of a fairly new

0:21:30.280 --> 0:21:32.960
<v Speaker 1>blogger on like the right wing scene, this kind of

0:21:33.160 --> 0:21:37.440
<v Speaker 1>underground hit who's particularly popular in the Bay Area tech

0:21:37.480 --> 0:21:40.080
<v Speaker 1>industry scene, a guy named Curtis Jarvin, who at this

0:21:40.119 --> 0:21:43.159
<v Speaker 1>point is writing under the name Menshus Moldbug. Now, we

0:21:43.200 --> 0:21:46.359
<v Speaker 1>did our episodes with you know, pretty recently on Minshus,

0:21:46.400 --> 0:21:47.879
<v Speaker 1>so I'm not going to go into a ton of

0:21:47.880 --> 0:21:51.240
<v Speaker 1>detail on him, but he advocates a return to monarchy

0:21:51.320 --> 0:21:55.280
<v Speaker 1>based around like small city states ruled by ceo kings,

0:21:55.680 --> 0:21:57.639
<v Speaker 1>Like that's his idea is like, it wouldn't it be

0:21:57.720 --> 0:22:00.399
<v Speaker 1>better if tech CEOs ran the world and like it

0:22:00.440 --> 0:22:02.320
<v Speaker 1>was a series of small city states that you could

0:22:02.359 --> 0:22:05.720
<v Speaker 1>travel in between, which if you've ever like had to

0:22:05.960 --> 0:22:08.800
<v Speaker 1>use the yeah, like all of us have. Have you

0:22:08.840 --> 0:22:11.119
<v Speaker 1>ever used any of the products these companies make, the

0:22:11.160 --> 0:22:14.000
<v Speaker 1>idea of them running an entire government is a nightmare.

0:22:15.119 --> 0:22:18.320
<v Speaker 1>But Peter thinks it's starting to think in this period

0:22:18.359 --> 0:22:20.520
<v Speaker 1>that maybe that's the right way to do things. And

0:22:20.560 --> 0:22:24.439
<v Speaker 1>I the open question always here is like does he

0:22:24.520 --> 0:22:27.239
<v Speaker 1>actually believe this is better for mankind? Because the thing

0:22:27.280 --> 0:22:29.879
<v Speaker 1>you'll get in Chaefkins writing and in Peter's own writings,

0:22:29.960 --> 0:22:31.879
<v Speaker 1>if you're trying to figure out, like why does he

0:22:31.960 --> 0:22:35.160
<v Speaker 1>think this is he has this belief that the tech

0:22:35.240 --> 0:22:41.320
<v Speaker 1>industry has ground to a halt, that human innovation is frozen, right,

0:22:41.720 --> 0:22:43.719
<v Speaker 1>that all of the stuff the tech industry is putting out,

0:22:43.800 --> 0:22:46.520
<v Speaker 1>or these like bullshit little products and like gadgets and

0:22:46.560 --> 0:22:48.800
<v Speaker 1>stuff that don't actually take us forward in the way

0:22:48.840 --> 0:22:51.679
<v Speaker 1>that you know, we had dreamed of going, you know

0:22:51.720 --> 0:22:54.879
<v Speaker 1>when Peter was a young kid, which you know is

0:22:54.920 --> 0:22:57.240
<v Speaker 1>to a degree true, although Peter's one of the guys

0:22:57.320 --> 0:23:01.320
<v Speaker 1>funding and investing in these bullshit projects that absolutely don't

0:23:01.320 --> 0:23:05.159
<v Speaker 1>take the species forward make a lot of money. So

0:23:05.840 --> 0:23:08.040
<v Speaker 1>does he believe that, like we need to do this

0:23:08.119 --> 0:23:11.640
<v Speaker 1>in order to actually increase innovation again because capitalist democracy

0:23:11.720 --> 0:23:15.080
<v Speaker 1>can't do it? Or does he? Is he just a

0:23:15.080 --> 0:23:17.239
<v Speaker 1>guy who wants to be more powerful and he's like, well,

0:23:17.240 --> 0:23:19.399
<v Speaker 1>if I'm a CEO, k I'm more powerful, right.

0:23:19.560 --> 0:23:22.400
<v Speaker 2>And that I mean that's the okrans Razor answer. I mean,

0:23:22.440 --> 0:23:25.760
<v Speaker 2>like what the guy that in the future will fund

0:23:25.840 --> 0:23:29.600
<v Speaker 2>like the right wing YouTube is upset that tech isn't

0:23:29.640 --> 0:23:30.760
<v Speaker 2>being innovative enough.

0:23:31.000 --> 0:23:32.280
<v Speaker 1>Yeah, like you know.

0:23:32.280 --> 0:23:35.199
<v Speaker 2>That that's just the real motivation here. I find that

0:23:35.280 --> 0:23:35.879
<v Speaker 2>hard to believe.

0:23:36.200 --> 0:23:38.119
<v Speaker 1>That's what guy I always come back to is like,

0:23:38.240 --> 0:23:42.640
<v Speaker 1>but he funded all of the bullshit projects, Like he's

0:23:42.640 --> 0:23:45.280
<v Speaker 1>back in face, but he's like the first Facebook investor

0:23:45.359 --> 0:23:47.240
<v Speaker 1>that was there was never any chance that that was

0:23:47.280 --> 0:23:50.680
<v Speaker 1>going to take us into Star Trek future, right right right?

0:23:50.960 --> 0:23:56.400
<v Speaker 2>Yeah, Like I I want to establish a multiplanetary species,

0:23:56.440 --> 0:23:58.040
<v Speaker 2>and the way I'm going to do it is by

0:23:58.560 --> 0:24:01.280
<v Speaker 2>putting some money behind two point.

0:24:01.119 --> 0:24:03.760
<v Speaker 1>Zero Yeah, this guy built a website to rate chicks

0:24:03.760 --> 0:24:06.240
<v Speaker 1>on how hot they are. That's gonna that's really gotta

0:24:06.320 --> 0:24:08.680
<v Speaker 1>that's gonna bring us to the hover board's oh yeah.

0:24:08.640 --> 0:24:12.600
<v Speaker 2>Got yeah on the SeaQuest.

0:24:12.480 --> 0:24:14.760
<v Speaker 1>Yeah, or put us on the sequest DSB. That's right.

0:24:14.920 --> 0:24:18.800
<v Speaker 1>That's thank you, thank you, And also everyone ri ip

0:24:19.000 --> 0:24:21.440
<v Speaker 1>Roy Scheider. You know, if there's ever been a better

0:24:21.560 --> 0:24:25.080
<v Speaker 1>drunk sheriff in film history, I haven't seen him. You

0:24:25.080 --> 0:24:27.240
<v Speaker 1>know the watch Go watch Jaws tonight, people. It's a

0:24:27.280 --> 0:24:32.120
<v Speaker 1>nice Halloween movie. So Peter starts shotgunning money to Yarvin

0:24:32.400 --> 0:24:34.879
<v Speaker 1>during this period of time as well. He invests you know,

0:24:35.000 --> 0:24:38.120
<v Speaker 1>like a million dollars something like that in the stupid

0:24:38.160 --> 0:24:41.000
<v Speaker 1>tech company project Yarvin has and I think there's probably

0:24:41.040 --> 0:24:43.600
<v Speaker 1>an additional chunk of dark money that he he could

0:24:44.080 --> 0:24:46.560
<v Speaker 1>And this is where this is. You know, we can

0:24:46.640 --> 0:24:50.400
<v Speaker 1>laugh about how inconsistent or an ethicle his like motivations are,

0:24:50.840 --> 0:24:52.840
<v Speaker 1>but the way he does this is smart because he

0:24:52.920 --> 0:24:56.520
<v Speaker 1>recognizes I really like this guy's writing. This guy is

0:24:56.840 --> 0:25:01.000
<v Speaker 1>putting out some stuff that's legitimately subversive on like the

0:25:01.080 --> 0:25:03.800
<v Speaker 1>role of democracy and how it's like doomed that I

0:25:03.880 --> 0:25:06.400
<v Speaker 1>think is useful towards where I want to see things go.

0:25:06.960 --> 0:25:10.240
<v Speaker 1>And he's right against such a way that is inherently

0:25:10.320 --> 0:25:15.160
<v Speaker 1>attractive and magnetic to other tech bros. So I want

0:25:15.160 --> 0:25:18.160
<v Speaker 1>to fund this guy as a way of like slipping

0:25:18.200 --> 0:25:21.960
<v Speaker 1>this drug into the supply of the Silicon Valley power

0:25:22.000 --> 0:25:25.840
<v Speaker 1>elite that's going to warp the way they think about

0:25:25.840 --> 0:25:28.399
<v Speaker 1>the world. And this is a very successful project. You know,

0:25:29.240 --> 0:25:31.639
<v Speaker 1>I don't know the degree to which all of that

0:25:31.840 --> 0:25:34.400
<v Speaker 1>is a plan from the beginning, but he really, like

0:25:34.400 --> 0:25:37.359
<v Speaker 1>like Yarvin, goes to parties at Peter's house and stuff

0:25:38.600 --> 0:25:40.800
<v Speaker 1>like they are tight, and I think this is very

0:25:40.880 --> 0:25:43.680
<v Speaker 1>much like a kind of part of his cohesive increasing

0:25:43.760 --> 0:25:47.879
<v Speaker 1>plan that like, this is a guy who's a reflexive contraryan.

0:25:47.960 --> 0:25:50.960
<v Speaker 1>He kind of hates ordinary people. He wants to be

0:25:51.000 --> 0:25:54.439
<v Speaker 1>able to rule them. He certainly wants to be locked

0:25:54.520 --> 0:25:58.520
<v Speaker 1>forever as someone who is above them. And he I

0:25:58.560 --> 0:26:02.199
<v Speaker 1>think finds very attractive idea of if we build go

0:26:02.320 --> 0:26:05.400
<v Speaker 1>back to a system that's this kind of neo monarchist system,

0:26:06.000 --> 0:26:09.280
<v Speaker 1>I can be enshrined like the House of windsor as

0:26:09.320 --> 0:26:11.720
<v Speaker 1>a permanent especially if I never have to die, right

0:26:11.760 --> 0:26:16.399
<v Speaker 1>as a permanent power and speaking of never dying, nova,

0:26:16.520 --> 0:26:20.160
<v Speaker 1>you know, who can't die, who cannot be killed. Absolutely

0:26:20.160 --> 0:26:23.000
<v Speaker 1>cannot be killed. I've tried to kill them. They won't die.

0:26:23.440 --> 0:26:34.560
<v Speaker 1>Is the sponsors of our podcast. We're backed before the

0:26:36.480 --> 0:26:37.000
<v Speaker 1>Yeah ship.

0:26:37.640 --> 0:26:38.840
<v Speaker 2>That might be my new nickname.

0:26:40.000 --> 0:26:42.600
<v Speaker 1>There's a crap.

0:26:45.200 --> 0:26:48.399
<v Speaker 2>Because I too have a shiny helmet and a third

0:26:48.440 --> 0:26:49.680
<v Speaker 2>rate Marvel super.

0:26:50.119 --> 0:26:53.359
<v Speaker 1>Oh no, you're a second rate easily. You're you're you're like,

0:26:53.480 --> 0:26:59.439
<v Speaker 1>you're like, you're like above Morbiustier. Wow. Yeah, better than

0:26:59.480 --> 0:27:01.720
<v Speaker 1>the MORBs. Yeah, you're Madam Webb. You're a Madam Webber

0:27:01.880 --> 0:27:03.960
<v Speaker 1>style character. You know what I do. I'd go so

0:27:04.040 --> 0:27:06.119
<v Speaker 1>far as ant man. And you know why that's a

0:27:06.160 --> 0:27:09.000
<v Speaker 1>big compliment is everybody likes Paul Rudd.

0:27:09.640 --> 0:27:10.440
<v Speaker 2>Everybody. It's true.

0:27:10.480 --> 0:27:12.480
<v Speaker 1>I assume everyone doesn't like Paul Rudd, but a lot

0:27:12.480 --> 0:27:13.880
<v Speaker 1>of people do. It's very popular.

0:27:16.200 --> 0:27:17.800
<v Speaker 2>He's a dad in Brooklyn. I like him.

0:27:18.119 --> 0:27:21.040
<v Speaker 1>Oh yeah yeah. And speaking of Paul Rudd, not at all.

0:27:21.320 --> 0:27:24.680
<v Speaker 1>Because Paul Rudd has not aged in thirty years and

0:27:24.760 --> 0:27:28.360
<v Speaker 1>Peter Peter puts a lot of money into life extension projects.

0:27:28.359 --> 0:27:32.639
<v Speaker 1>We connected it. We made it work, yes, specifically trying

0:27:32.640 --> 0:27:34.679
<v Speaker 1>to steal the blood of Paul Rudd to figure out

0:27:34.720 --> 0:27:37.200
<v Speaker 1>what's going on there, what's going on there? How you're

0:27:37.200 --> 0:27:39.720
<v Speaker 1>trying to play as a thirty nine year old man.

0:27:40.280 --> 0:27:45.359
<v Speaker 2>It's incredibly takes a blood of teenagers and Paul Rudd, Yeah,

0:27:45.359 --> 0:27:47.880
<v Speaker 2>hold on, I want to give the Curtis Yarvin thing

0:27:48.040 --> 0:27:50.639
<v Speaker 2>that we're talking about before the is it a little

0:27:50.640 --> 0:27:55.240
<v Speaker 2>bit of it? Like, you know, Peter Teel himself got

0:27:55.680 --> 0:27:59.880
<v Speaker 2>sort of seed funding money as a weirdo reactionary right

0:28:00.560 --> 0:28:02.439
<v Speaker 2>back when he was a kid, and so he's just

0:28:02.520 --> 0:28:06.719
<v Speaker 2>kind of like paying it forward to this next weirdo reactionary.

0:28:07.200 --> 0:28:09.960
<v Speaker 1>Yeah, paying it forward I think credits Peter maybe with

0:28:10.000 --> 0:28:12.960
<v Speaker 1>a degree of generosity, which is a weird term to

0:28:13.040 --> 0:28:15.680
<v Speaker 1>use for like right wing rullshit. But I think maybe

0:28:15.680 --> 0:28:18.960
<v Speaker 1>it's I think maybe if I'm trying to psychoanalyze Peter

0:28:19.160 --> 0:28:20.960
<v Speaker 1>and I'm not being fair here, but fuck it, it's

0:28:20.960 --> 0:28:25.320
<v Speaker 1>my podcast. Peter was willing to take that money and

0:28:25.400 --> 0:28:27.800
<v Speaker 1>preferred it to not having the money and not having

0:28:27.840 --> 0:28:30.760
<v Speaker 1>like a platform. But I also think he probably found

0:28:30.800 --> 0:28:35.320
<v Speaker 1>it kind of like emasculating maybe to need someone else's

0:28:35.320 --> 0:28:38.320
<v Speaker 1>money that like his first plans had failed and that's

0:28:38.320 --> 0:28:41.720
<v Speaker 1>why he had to take that right wing influencer grifter

0:28:41.840 --> 0:28:44.320
<v Speaker 1>money in the first place. And I think maybe there's

0:28:44.320 --> 0:28:47.080
<v Speaker 1>a satisfaction to him in having the shoeb be. On

0:28:47.120 --> 0:28:49.600
<v Speaker 1>the other foot, on now being the guy who is

0:28:49.720 --> 0:28:54.120
<v Speaker 1>funding those influencers, right, obviously he sees the value in

0:28:54.200 --> 0:28:56.520
<v Speaker 1>that kind of funding, right, So I think he's always

0:28:56.560 --> 0:28:59.360
<v Speaker 1>been kind of supportive of that, and maybe on the

0:28:59.400 --> 0:29:01.640
<v Speaker 1>if you're being you're giving him more credit as like

0:29:01.720 --> 0:29:05.560
<v Speaker 1>being less of a dick. All again, this is still

0:29:05.560 --> 0:29:07.960
<v Speaker 1>an evil thing to do. Maybe it's that he genuinely

0:29:08.040 --> 0:29:09.680
<v Speaker 1>is like, well, this money was there for me when

0:29:09.680 --> 0:29:12.760
<v Speaker 1>I was a fledgling right wing shithead. I got to

0:29:12.800 --> 0:29:14.840
<v Speaker 1>pay it forward, you know, and invest in the career

0:29:14.840 --> 0:29:15.720
<v Speaker 1>of another asshole.

0:29:17.920 --> 0:29:24.120
<v Speaker 2>But here is Jarvin is specifically right, I mean, correct

0:29:24.160 --> 0:29:26.760
<v Speaker 2>me if I'm wrong, But Jarvin is like specifically promoting

0:29:27.280 --> 0:29:29.000
<v Speaker 2>guys like Peter Thiel.

0:29:29.360 --> 0:29:35.120
<v Speaker 1>As yes God, yes, right, God, kings of the City

0:29:35.200 --> 0:29:37.920
<v Speaker 1>States that are going to replace the United States as

0:29:38.680 --> 0:29:44.600
<v Speaker 1>the doom of democracy comes down, right, Yeah, yeah, there

0:29:44.600 --> 0:29:46.920
<v Speaker 1>are neo feudalists right at the end of the day,

0:29:46.960 --> 0:29:49.360
<v Speaker 1>all they want is a fucking coat of arms and

0:29:49.400 --> 0:29:54.600
<v Speaker 1>a goddamn fucking march to listen to. You go to

0:29:54.640 --> 0:29:58.040
<v Speaker 1>the comments, you like, look up old czarist Russian the

0:29:58.320 --> 0:30:00.480
<v Speaker 1>band music and shit, you look at the it's about

0:30:00.480 --> 0:30:01.920
<v Speaker 1>all these guys being like, oh, if only we could

0:30:01.920 --> 0:30:04.239
<v Speaker 1>go back to the beautiful days of the Romanovs. All

0:30:04.320 --> 0:30:08.440
<v Speaker 1>of those guys are no less intellectually courageous than fucking

0:30:08.440 --> 0:30:10.760
<v Speaker 1>Peter teal Right, they just dress it up a little

0:30:10.840 --> 0:30:13.760
<v Speaker 1>less by masturbating over the fucking tzar. All of these

0:30:13.760 --> 0:30:15.720
<v Speaker 1>guys just want a tzar or they want to be

0:30:15.800 --> 0:30:17.680
<v Speaker 1>the czar, right, or they want to be you know,

0:30:17.880 --> 0:30:21.360
<v Speaker 1>the Czar's I think Peter wants to be a grand

0:30:21.440 --> 0:30:22.360
<v Speaker 1>duke or some shit.

0:30:22.520 --> 0:30:22.680
<v Speaker 2>Right.

0:30:22.720 --> 0:30:24.800
<v Speaker 1>The tsar is probably a little bit too much exposure.

0:30:25.960 --> 0:30:28.320
<v Speaker 2>This would all be much funnier if you think of

0:30:28.320 --> 0:30:31.880
<v Speaker 2>them all with those giant curly Q mustaches, absolutely knee

0:30:31.880 --> 0:30:36.480
<v Speaker 2>breeches yeah yeah, powdered wigs.

0:30:35.840 --> 0:30:37.920
<v Speaker 1>Yeah, or if you think about them all we could

0:30:37.920 --> 0:30:39.760
<v Speaker 1>just talk about what happened to the czars in a basement,

0:30:39.840 --> 0:30:44.560
<v Speaker 1>but you know that's probably ay. So Peter starts throwing

0:30:44.560 --> 0:30:47.040
<v Speaker 1>money into living forever. He invests a lot in a

0:30:47.080 --> 0:30:50.040
<v Speaker 1>guy named Aubrey de Gray who's running something called the

0:30:50.080 --> 0:30:56.920
<v Speaker 1>Methusla Institute, And yeah, Degray is like the most prominent

0:30:57.160 --> 0:30:59.600
<v Speaker 1>we could live forever if we just figure out the

0:30:59.640 --> 0:31:02.360
<v Speaker 1>right thing advocate up to the present day, he's still

0:31:02.400 --> 0:31:05.520
<v Speaker 1>sort of like one of the big names in this industry.

0:31:05.560 --> 0:31:09.120
<v Speaker 1>Depending on how you kind of read into things. I

0:31:09.160 --> 0:31:11.040
<v Speaker 1>think he's a guy who got a lot more credit

0:31:11.080 --> 0:31:12.760
<v Speaker 1>because I used to be interested in some of what

0:31:12.840 --> 0:31:15.280
<v Speaker 1>he had to say. I think maybe in I've come

0:31:15.280 --> 0:31:17.200
<v Speaker 1>around to it, he's more of a con man in the

0:31:17.240 --> 0:31:20.240
<v Speaker 1>modern era. That's not an allegation, but like that's kind

0:31:20.240 --> 0:31:23.640
<v Speaker 1>of my gut feeling about the dude. But he's certainly

0:31:23.640 --> 0:31:26.240
<v Speaker 1>he is not a right wing figure in this period. Degray,

0:31:26.280 --> 0:31:28.360
<v Speaker 1>if anything, would be more on the progressive side of

0:31:28.400 --> 0:31:32.719
<v Speaker 1>things in the early two thousands, like progressive left. So

0:31:32.760 --> 0:31:35.840
<v Speaker 1>the fact that Peter is funding him again, Libertarians are

0:31:36.200 --> 0:31:41.880
<v Speaker 1>kind of like more aligned with the left in this

0:31:41.920 --> 0:31:44.160
<v Speaker 1>period of time because of their opposition to the Bush

0:31:44.160 --> 0:31:46.760
<v Speaker 1>Party is a general rule, So the fact that Teal,

0:31:47.240 --> 0:31:50.040
<v Speaker 1>who is kind of a neocon in some ways, is

0:31:50.080 --> 0:31:52.760
<v Speaker 1>funding a guy like Degray might would not have been

0:31:52.800 --> 0:31:55.000
<v Speaker 1>seen as like, oh, it's this weird right wing billionaire

0:31:55.640 --> 0:31:57.960
<v Speaker 1>foisting money rights right, Like, That's just not how it

0:31:58.000 --> 0:32:01.360
<v Speaker 1>would have looked. He also puts money into cryogenics and

0:32:01.400 --> 0:32:04.240
<v Speaker 1>he's sure. There's some interesting interviews with him where he's like,

0:32:04.320 --> 0:32:06.840
<v Speaker 1>asked what he thinks would be a good human life span,

0:32:07.440 --> 0:32:10.160
<v Speaker 1>and he was like, I don't see why people shouldn't

0:32:10.200 --> 0:32:15.040
<v Speaker 1>live forever, right, But specifically he's what's kind of important

0:32:15.080 --> 0:32:16.520
<v Speaker 1>to note here is that Peter doesn't really have an

0:32:16.520 --> 0:32:19.440
<v Speaker 1>interest in making sure people live forever. That's not what

0:32:19.520 --> 0:32:23.560
<v Speaker 1>he's about. He wants to live forever. And he even

0:32:23.600 --> 0:32:26.040
<v Speaker 1>makes some specific statements about how I don't agree with

0:32:26.080 --> 0:32:33.080
<v Speaker 1>the ideology that death for every person is necessary, right, yeah,

0:32:33.120 --> 0:32:35.560
<v Speaker 1>And I think what's happening here is that, like again,

0:32:36.000 --> 0:32:40.000
<v Speaker 1>Peter is this kind of to his bones contrarian. He

0:32:40.160 --> 0:32:43.520
<v Speaker 1>rejects other people. And one of the things that bonds

0:32:43.560 --> 0:32:46.600
<v Speaker 1>all people together, no matter how smart you are, how

0:32:46.680 --> 0:32:49.160
<v Speaker 1>rich you are, who you are, is that everybody dies.

0:32:49.840 --> 0:32:53.080
<v Speaker 1>And that I think is what's most offensive about death

0:32:53.080 --> 0:32:56.440
<v Speaker 1>to Peter is that it it it kind of forever

0:32:56.600 --> 0:32:59.520
<v Speaker 1>locks him in as one of the herd, right, Like,

0:32:59.600 --> 0:33:02.400
<v Speaker 1>you're not fundamentally above the rest of mankind if you

0:33:02.520 --> 0:33:05.200
<v Speaker 1>die like everyone else. And I think that's the primary

0:33:05.280 --> 0:33:08.040
<v Speaker 1>reason why he's so obsessed with this, you know, like

0:33:08.400 --> 0:33:10.880
<v Speaker 1>he is he wants to be a pharaoh. He sees

0:33:10.960 --> 0:33:13.840
<v Speaker 1>himself as like a pharaoh type, right, that he has

0:33:13.960 --> 0:33:16.720
<v Speaker 1>owed this kind of eternity of power and influence because

0:33:16.760 --> 0:33:19.600
<v Speaker 1>he is so special. And the idea that like no man,

0:33:19.640 --> 0:33:21.360
<v Speaker 1>when it all comes down into it, you wind up

0:33:21.360 --> 0:33:24.320
<v Speaker 1>in the dirt like everybody else. Like that is the

0:33:24.320 --> 0:33:26.480
<v Speaker 1>most offensive part of this to him, even more than

0:33:26.480 --> 0:33:30.480
<v Speaker 1>like any fears about, you know, the the final cessation

0:33:30.720 --> 0:33:35.840
<v Speaker 1>of consciousness. It's it's being inextricably bound to everyone else

0:33:35.840 --> 0:33:36.520
<v Speaker 1>who exists.

0:33:36.960 --> 0:33:40.240
<v Speaker 2>That is like more than that than just like scared

0:33:40.320 --> 0:33:43.840
<v Speaker 2>little man child with too much money who is just like,

0:33:44.000 --> 0:33:47.240
<v Speaker 2>oh no, this you know, this might happen to me,

0:33:47.360 --> 0:33:50.520
<v Speaker 2>and therefore I'm gonna like support this. Like guy who

0:33:50.560 --> 0:33:53.520
<v Speaker 2>looks like a wizard, who's gonna tell me, yeah, he.

0:33:53.480 --> 0:33:56.040
<v Speaker 1>Does look like a wizard. Did you have you looked

0:33:56.080 --> 0:33:57.840
<v Speaker 1>up a picture of Aubrey de Gray or did you

0:33:57.880 --> 0:33:59.400
<v Speaker 1>just guess that he looks like a wizard.

0:34:00.000 --> 0:34:02.280
<v Speaker 2>I just remind myself, this guy has got a beard.

0:34:02.680 --> 0:34:05.480
<v Speaker 1>Oh man, so fa, he looks like such a wizard.

0:34:06.320 --> 0:34:07.320
<v Speaker 2>It's crazy.

0:34:08.040 --> 0:34:10.040
<v Speaker 1>So they pull up that wizard ass, motherfucker.

0:34:11.120 --> 0:34:15.160
<v Speaker 2>It's wild. It's like, yeah, honestly, it looks like one

0:34:15.200 --> 0:34:18.200
<v Speaker 2>of those things like there's like a kid hiding inside

0:34:18.200 --> 0:34:19.920
<v Speaker 2>the beard's.

0:34:21.360 --> 0:34:23.560
<v Speaker 1>Get off the gray ass son of a bitch.

0:34:23.640 --> 0:34:27.080
<v Speaker 3>Yeah, we'll just have Malcolm throw a picture up while

0:34:27.080 --> 0:34:27.960
<v Speaker 3>we're talking about it.

0:34:28.080 --> 0:34:30.120
<v Speaker 1>Yeah. Yeah, find one that really makes him look like

0:34:30.160 --> 0:34:30.960
<v Speaker 1>a fucking wizard.

0:34:31.280 --> 0:34:34.480
<v Speaker 2>There's really none that don't that doesn't They are all

0:34:34.520 --> 0:34:40.400
<v Speaker 2>wizard picks. Yeah, you know, I did did you fund

0:34:40.440 --> 0:34:45.000
<v Speaker 2>this guy directly or did he fund him through the founders.

0:34:44.520 --> 0:34:48.080
<v Speaker 1>I think through the Founder's fund that he starts at Clarion.

0:34:48.160 --> 0:34:50.120
<v Speaker 1>I think that's where most of his money comes in. Yeah.

0:34:50.960 --> 0:34:56.160
<v Speaker 2>Yeah, so I like sim like I ran across the

0:34:56.280 --> 0:35:00.920
<v Speaker 2>edges of this when I was reporting back in the day. Yeah,

0:35:01.520 --> 0:35:04.920
<v Speaker 2>I definitely. Like. There's a couple of other Founder's Fund

0:35:04.920 --> 0:35:09.560
<v Speaker 2>partners who are also equally into you know, wizardry and

0:35:09.760 --> 0:35:13.160
<v Speaker 2>life extension and stuff like that, and I was doing

0:35:13.160 --> 0:35:18.320
<v Speaker 2>a story on them. Specifically, they hired an in house

0:35:19.280 --> 0:35:22.880
<v Speaker 2>meditation teacher and guru who claimed that he could personally

0:35:23.000 --> 0:35:27.280
<v Speaker 2>enlighten them and bring them like universal consciousness and oneness

0:35:27.280 --> 0:35:28.080
<v Speaker 2>with the Buddha.

0:35:28.400 --> 0:35:28.600
<v Speaker 1>Yeah.

0:35:28.640 --> 0:35:30.359
<v Speaker 2>I mean, as far as I can tell, it totally worked, right,

0:35:30.640 --> 0:35:33.080
<v Speaker 2>I mean, what else would you do with your time

0:35:33.680 --> 0:35:40.400
<v Speaker 2>then support the end of American democracy if you're in Yeah. Yeah,

0:35:40.440 --> 0:35:43.880
<v Speaker 2>so anyway, and yeah, they were all into life extension

0:35:43.920 --> 0:35:46.000
<v Speaker 2>and all kinds of all kinds of stuff like that.

0:35:46.040 --> 0:35:48.719
<v Speaker 2>I didn't see Teal at that time, but definitely, like

0:35:48.800 --> 0:35:52.240
<v Speaker 2>there's a lot of his people that were in there.

0:35:53.160 --> 0:35:56.000
<v Speaker 1>Well, I think it's natural you kind of get super

0:35:56.120 --> 0:36:00.040
<v Speaker 1>rich in your early twenties and then you know, you

0:36:00.120 --> 0:36:02.120
<v Speaker 1>first concern after that, when you have more money than

0:36:02.120 --> 0:36:04.600
<v Speaker 1>you could ever spend, is like, well, I want to

0:36:04.600 --> 0:36:06.480
<v Speaker 1>live long enough to spend all this right.

0:36:07.239 --> 0:36:09.640
<v Speaker 2>Right money than God. I want to be God.

0:36:10.000 --> 0:36:12.440
<v Speaker 1>Yeah, I don't know. Some of it's probably that, Like

0:36:12.520 --> 0:36:14.000
<v Speaker 1>I think, as a general rule, by the time you

0:36:14.040 --> 0:36:16.799
<v Speaker 1>get really rich, you're usually maybe probably closer to your

0:36:16.840 --> 0:36:19.200
<v Speaker 1>thirties than your early twenties for most of these guys.

0:36:19.200 --> 0:36:22.360
<v Speaker 1>And that is when feelings of mortality, you know, you

0:36:22.719 --> 0:36:25.400
<v Speaker 1>start to and you start to also at the early

0:36:25.480 --> 0:36:28.120
<v Speaker 1>stages of aging. There is a lot that if you

0:36:28.239 --> 0:36:31.320
<v Speaker 1>have shitloads of money for the right kind of drugs

0:36:31.360 --> 0:36:34.040
<v Speaker 1>and the right kind of like personal training and shit,

0:36:34.440 --> 0:36:37.600
<v Speaker 1>you can kind of push off the early steps of

0:36:37.680 --> 0:36:40.840
<v Speaker 1>aging significantly, and you can also do stuff like you

0:36:40.880 --> 0:36:43.600
<v Speaker 1>see this with both Teal and with Elon Musk. Once

0:36:43.640 --> 0:36:47.239
<v Speaker 1>they get rich physically, they change a lot. Initially, you know,

0:36:47.280 --> 0:36:49.600
<v Speaker 1>you can get the hair tramlance like Jeff Bezos, you

0:36:49.760 --> 0:36:52.319
<v Speaker 1>get on Hgah, you get a personal trainer, and you

0:36:52.320 --> 0:36:55.239
<v Speaker 1>start to convince yourself, wow, so much of what I

0:36:55.400 --> 0:36:57.640
<v Speaker 1>you know, when I was like a young kid just working,

0:36:57.680 --> 0:37:00.000
<v Speaker 1>I couldn't have a body like this because I didn't

0:37:00.160 --> 0:37:03.319
<v Speaker 1>have the resources to pay experts to maintain it for me.

0:37:03.960 --> 0:37:07.759
<v Speaker 1>And I'm able to what else is possible, right right,

0:37:08.120 --> 0:37:10.279
<v Speaker 1>And I think that's probably part of what's going on there.

0:37:10.400 --> 0:37:14.040
<v Speaker 2>Also just getting a lot of money all once breaks

0:37:14.719 --> 0:37:15.319
<v Speaker 2>bad for you.

0:37:15.800 --> 0:37:18.040
<v Speaker 1>That was a good part of like BoJack Horseman right

0:37:18.080 --> 0:37:20.440
<v Speaker 1>where there's that line where it's like the age at

0:37:20.440 --> 0:37:22.759
<v Speaker 1>which you suddenly at which you become a millionaire is

0:37:22.760 --> 0:37:25.120
<v Speaker 1>the age that you're like frozen at forever. You don't

0:37:25.120 --> 0:37:27.200
<v Speaker 1>really progress mentally past that point.

0:37:28.520 --> 0:37:29.759
<v Speaker 2>May we all get to that point?

0:37:29.840 --> 0:37:31.920
<v Speaker 1>May we all get to that point, you know, but

0:37:31.960 --> 0:37:36.080
<v Speaker 1>hopefully when you're like forty right as opposed to taking

0:37:36.080 --> 0:37:40.399
<v Speaker 1>the Zuckerberg route. So at this point, all of these

0:37:40.440 --> 0:37:45.000
<v Speaker 1>gifts that Peter you know, has been giving, it's interesting,

0:37:45.040 --> 0:37:47.759
<v Speaker 1>like he's a The primary thing that he's done at

0:37:47.760 --> 0:37:50.040
<v Speaker 1>this stage, right for all of you know, the money

0:37:50.080 --> 0:37:54.000
<v Speaker 1>and the high ambitions, is he has started cashed out

0:37:54.000 --> 0:37:56.719
<v Speaker 1>on and abandoned PayPal, and then he has launched an

0:37:56.760 --> 0:38:00.200
<v Speaker 1>investment firm called Clarium, and by kind of the the

0:38:00.239 --> 0:38:04.240
<v Speaker 1>second Bush term, Clarium is becoming a really big deal.

0:38:04.280 --> 0:38:05.840
<v Speaker 1>By two thousand and four, they had two hundred and

0:38:05.880 --> 0:38:09.200
<v Speaker 1>sixty million dollars under management, and within like a couple

0:38:09.239 --> 0:38:12.280
<v Speaker 1>of years, the fund was worth more than two billion dollars,

0:38:12.640 --> 0:38:15.840
<v Speaker 1>which is that it's double and triple digit growth for

0:38:15.920 --> 0:38:18.719
<v Speaker 1>most of its early years. It changes. People will say

0:38:18.760 --> 0:38:23.359
<v Speaker 1>it completely changed how venture capital works in the valley, right,

0:38:23.400 --> 0:38:26.279
<v Speaker 1>because it was such a successful company. The kind of

0:38:26.320 --> 0:38:29.360
<v Speaker 1>bets that Peter and his because all of the people's

0:38:29.360 --> 0:38:31.759
<v Speaker 1>staff there are his friends from PayPal and his like

0:38:31.880 --> 0:38:34.759
<v Speaker 1>right wing buddies at Stanford, right, who are also in

0:38:34.840 --> 0:38:37.400
<v Speaker 1>large part a lot of his buddies from PayPal, you know,

0:38:37.400 --> 0:38:39.920
<v Speaker 1>and he's kind of picking. He's finding guys who are

0:38:39.920 --> 0:38:42.680
<v Speaker 1>starting companies. Some people will allege their all guys he

0:38:42.719 --> 0:38:45.799
<v Speaker 1>finds attractive. You know. I don't know. I think that

0:38:45.920 --> 0:38:48.000
<v Speaker 1>sometimes it's just people being like, oh, this guy's handsome,

0:38:48.040 --> 0:38:49.960
<v Speaker 1>Peter's gay. That must be part of it. I don't

0:38:49.960 --> 0:38:54.319
<v Speaker 1>know that it actually is, but he's he's finding these

0:38:54.360 --> 0:38:57.280
<v Speaker 1>other founders and he's bringing them in. It is noted.

0:38:57.360 --> 0:38:59.600
<v Speaker 1>There's a couple of things that make Peter's fund really

0:38:59.600 --> 0:39:02.759
<v Speaker 1>different from other funds. For one, he's not interested in

0:39:03.280 --> 0:39:06.680
<v Speaker 1>people constantly making moves. He's fine if you only make

0:39:06.719 --> 0:39:10.040
<v Speaker 1>one investment a year, right. And again, he doesn't really

0:39:10.080 --> 0:39:13.319
<v Speaker 1>fire people. He's bad at that. He's bad at confrontation.

0:39:13.680 --> 0:39:15.320
<v Speaker 1>You can kind of wind up shuffled off to a

0:39:15.360 --> 0:39:17.040
<v Speaker 1>part of the company where you don't have much connection

0:39:17.120 --> 0:39:19.000
<v Speaker 1>to Peter if you fuck up enough. But like, he

0:39:19.040 --> 0:39:23.440
<v Speaker 1>doesn't like conflict. For as many sort of evil, fucking

0:39:23.640 --> 0:39:27.359
<v Speaker 1>confrontational things and people as this guy invests in, he

0:39:27.400 --> 0:39:30.440
<v Speaker 1>personally doesn't seem to have much stomach for conflict, especially

0:39:30.480 --> 0:39:33.279
<v Speaker 1>not with people he likes. So when it comes to

0:39:33.400 --> 0:39:36.720
<v Speaker 1>like what made Clarium super wealthy, one of the things

0:39:36.719 --> 0:39:40.960
<v Speaker 1>that was hugely influential in their growth was backing one

0:39:40.960 --> 0:39:44.760
<v Speaker 1>of the most toxic corporations on the planet, Opti Canada.

0:39:45.239 --> 0:39:45.399
<v Speaker 2>Now.

0:39:45.440 --> 0:39:48.759
<v Speaker 1>Opti is an Israeli Canadian company that is involved in

0:39:48.880 --> 0:39:53.000
<v Speaker 1>like taking bitchumen and extracting oil from it. And this is,

0:39:53.080 --> 0:39:55.080
<v Speaker 1>of all of the ways to get oil out of

0:39:55.120 --> 0:39:59.120
<v Speaker 1>the ground, bitumen extraction is like the most fucking poisonous,

0:39:59.200 --> 0:40:02.239
<v Speaker 1>right it is. This is the absolute worst way to

0:40:02.400 --> 0:40:06.160
<v Speaker 1>get oil for the environment. It is a hideously toxic

0:40:06.200 --> 0:40:08.920
<v Speaker 1>thing to do. And Peter and his company put a

0:40:08.920 --> 0:40:11.680
<v Speaker 1>shitload of money behind this, and it secures returns of

0:40:11.760 --> 0:40:14.480
<v Speaker 1>like sixty percent for them. And this is the period

0:40:14.760 --> 0:40:19.160
<v Speaker 1>Peter is very much anti kind of climate change. I

0:40:19.160 --> 0:40:22.319
<v Speaker 1>don't know how much he acts climate Chang's very pro

0:40:22.440 --> 0:40:25.480
<v Speaker 1>climate change. Yeah, I think he's anti anti like he's

0:40:25.560 --> 0:40:28.799
<v Speaker 1>I think he would say anti the ideology of climate change. Right.

0:40:29.120 --> 0:40:30.600
<v Speaker 1>And one of the things that's happened here is right

0:40:30.640 --> 0:40:33.760
<v Speaker 1>around like two thousand and six seven he he Elon

0:40:33.880 --> 0:40:37.360
<v Speaker 1>Musk and David Sachs fund a movie called Thank You

0:40:37.400 --> 0:40:40.480
<v Speaker 1>for Smoking, which I actually just watched the day that

0:40:40.520 --> 0:40:43.239
<v Speaker 1>Biden dropped out of the election. It still holds up. Yeah,

0:40:43.280 --> 0:40:45.759
<v Speaker 1>it's a good movie. It's it's a fucking what's his

0:40:46.040 --> 0:40:47.759
<v Speaker 1>name the guy who played two Face and the new

0:40:47.840 --> 0:40:52.520
<v Speaker 1>in the chrysn Ol in Batman movies. Yeah him.

0:40:52.960 --> 0:40:54.719
<v Speaker 2>Yeah, he was a disturbingly a handsome guy.

0:40:54.840 --> 0:40:57.120
<v Speaker 1>Incredibly and like right, it is Aaron Eckert right at

0:40:57.160 --> 0:40:59.600
<v Speaker 1>his like the peak of him being a handsome, charming

0:40:59.600 --> 0:41:02.919
<v Speaker 1>son of a bitch. It's a good movie. Like it's

0:41:02.960 --> 0:41:05.399
<v Speaker 1>easily the best thing that those three guys were ever

0:41:05.480 --> 0:41:09.000
<v Speaker 1>involved with. It's based off a book by William F.

0:41:09.040 --> 0:41:14.840
<v Speaker 1>Buckley's son, which is Rhodesia Lover William F. Buckley. But

0:41:14.880 --> 0:41:18.440
<v Speaker 1>it's a good book, Like it is extremely libertarian, and

0:41:18.480 --> 0:41:22.920
<v Speaker 1>it is extremely early Aughts libertarian, and it's one of

0:41:22.920 --> 0:41:26.160
<v Speaker 1>those things. I think if you take the ideology that

0:41:26.239 --> 0:41:30.680
<v Speaker 1>the book's characters have completely seriously, then it's a lot

0:41:30.760 --> 0:41:33.520
<v Speaker 1>less enjoyable. But it's it's impossible to really do that

0:41:33.560 --> 0:41:36.160
<v Speaker 1>when you're watching it because there's just so many talented

0:41:36.160 --> 0:41:39.680
<v Speaker 1>people involved, and it's a good script. Again, Aaron eckert

0:41:39.760 --> 0:41:43.480
<v Speaker 1>is is just just soaking up the screen, and you've

0:41:43.480 --> 0:41:47.359
<v Speaker 1>got fucking JK. Simmons is kind of the antagon. There's

0:41:47.360 --> 0:41:49.960
<v Speaker 1>a lot of great people in that movie. Anyway, go

0:41:50.080 --> 0:41:52.960
<v Speaker 1>watch Thank You for Smoking. It holds up like believe

0:41:53.000 --> 0:41:56.239
<v Speaker 1>me people. But you also as you watch it think

0:41:56.280 --> 0:41:59.879
<v Speaker 1>like this is pretty true to Peter's actual unironic belief

0:42:00.080 --> 0:42:03.360
<v Speaker 1>about politics in the early two thousands, right, as opposed

0:42:03.360 --> 0:42:05.000
<v Speaker 1>to just like, well, this is a fun movie about

0:42:05.040 --> 0:42:09.760
<v Speaker 1>like these absolutely amoral merchants of disinformation, right.

0:42:10.040 --> 0:42:15.640
<v Speaker 2>Right, yeah, come on, stop being so serious, why right?

0:42:15.800 --> 0:42:18.560
<v Speaker 1>Right right? We're never going to wind up behind power

0:42:18.760 --> 0:42:21.560
<v Speaker 1>Yeah yeah.

0:42:22.600 --> 0:42:22.839
<v Speaker 2>Name.

0:42:24.120 --> 0:42:26.800
<v Speaker 1>Peter's putting money into Thank You for Smoking and bitum

0:42:26.800 --> 0:42:30.600
<v Speaker 1>an extraction, and he's also kind of this is the

0:42:30.640 --> 0:42:34.960
<v Speaker 1>period where he's really started to relish being the famous

0:42:35.120 --> 0:42:38.280
<v Speaker 1>founder guy here, and he gets more open about everything

0:42:38.320 --> 0:42:40.839
<v Speaker 1>in his life. I'm going to quote from Chafkin's book

0:42:40.840 --> 0:42:43.640
<v Speaker 1>The Contrarian. Here, he began telling close friends and then

0:42:43.680 --> 0:42:46.080
<v Speaker 1>coworkers that he was gay, socializing in bars are on

0:42:46.120 --> 0:42:48.080
<v Speaker 1>the roof of his new house, often with the handsome

0:42:48.080 --> 0:42:50.799
<v Speaker 1>young men he was hiring, many of whom were out teel.

0:42:50.880 --> 0:42:54.000
<v Speaker 1>Self actualization would pay off. In August two thousand and seven,

0:42:54.080 --> 0:42:56.520
<v Speaker 1>four months before the recession began and close to a

0:42:56.600 --> 0:43:00.160
<v Speaker 1>year before most Americans realized the economy was collapsing, sent

0:43:00.239 --> 0:43:02.960
<v Speaker 1>a letter to investors declaring that the economic expansion was

0:43:03.000 --> 0:43:06.160
<v Speaker 1>officially over. We've begun a long post boom phase that

0:43:06.640 --> 0:43:09.880
<v Speaker 1>can be called the long Goodbye, the letter said. And

0:43:09.920 --> 0:43:14.479
<v Speaker 1>this is one of Peter's great successful predictions, right, which

0:43:14.520 --> 0:43:17.520
<v Speaker 1>is that he calls he starts writing in two thousand

0:43:17.560 --> 0:43:20.480
<v Speaker 1>and seven about the global financial crash that's going to

0:43:20.920 --> 0:43:23.960
<v Speaker 1>really hit in two thousand and eight. He is very

0:43:24.000 --> 0:43:27.080
<v Speaker 1>much ahead of the curve on this. A few months

0:43:27.080 --> 0:43:29.200
<v Speaker 1>after that two thousand and seven letter, right at the

0:43:29.239 --> 0:43:31.520
<v Speaker 1>start of two thousand and eight, just weeks after he'd

0:43:31.520 --> 0:43:34.440
<v Speaker 1>been outed by Gawker, Peter sends out a ten thousand

0:43:34.480 --> 0:43:37.080
<v Speaker 1>word essay to investors. And this is another thing that

0:43:37.160 --> 0:43:40.040
<v Speaker 1>kind of he's famous for as like a hedge fun guy,

0:43:40.160 --> 0:43:44.800
<v Speaker 1>is he will periodically write these massive political and philosophical

0:43:44.920 --> 0:43:47.880
<v Speaker 1>sometimes even religious essays and send them out to all

0:43:47.960 --> 0:43:50.640
<v Speaker 1>of his funders right to kind of explain their philosophy

0:43:50.800 --> 0:43:52.920
<v Speaker 1>at the moment. And a lot of this is like,

0:43:53.360 --> 0:43:55.040
<v Speaker 1>I have a lot of confidence in your fucking dorm

0:43:55.080 --> 0:43:57.160
<v Speaker 1>room ass musings. If you're sending this kind of shit

0:43:57.160 --> 0:43:59.440
<v Speaker 1>out of people are trusting to invest money in, I'm

0:43:59.480 --> 0:44:01.160
<v Speaker 1>guessing a lot of these wound up just kind of

0:44:01.200 --> 0:44:08.200
<v Speaker 1>like thrown into trash. But so he predicts correctly that

0:44:08.239 --> 0:44:11.400
<v Speaker 1>there's this crash coming. But he also I think, because

0:44:11.760 --> 0:44:15.160
<v Speaker 1>just of who he is, he over captastrophizes, right. The

0:44:15.160 --> 0:44:17.279
<v Speaker 1>two thousand and eight crash was really bad. He sees

0:44:17.320 --> 0:44:20.040
<v Speaker 1>that coming. He also thinks it's definitely going to cause

0:44:20.040 --> 0:44:23.160
<v Speaker 1>a depression, right, that no one is going to bail

0:44:23.200 --> 0:44:27.160
<v Speaker 1>out anything, and that the cycle of collapse will continue

0:44:27.440 --> 0:44:30.400
<v Speaker 1>absolutely unabated, will go on like a runaway sort of

0:44:30.400 --> 0:44:31.600
<v Speaker 1>freight train kind of deal.

0:44:31.760 --> 0:44:31.960
<v Speaker 2>Right.

0:44:32.560 --> 0:44:35.200
<v Speaker 1>And so instead of doing what would have been the

0:44:35.280 --> 0:44:38.160
<v Speaker 1>smart thing as an evil investor, which is shorting the

0:44:38.200 --> 0:44:40.480
<v Speaker 1>housing market, right, tell you you have your people in

0:44:40.600 --> 0:44:44.040
<v Speaker 1>their risky positions with like companies that owe a lot

0:44:44.040 --> 0:44:46.640
<v Speaker 1>of money and fucking short the housing market, right in

0:44:46.760 --> 0:44:49.000
<v Speaker 1>order to make money off of what you can in

0:44:49.040 --> 0:44:51.840
<v Speaker 1>the immediate term and kind of avoid the consequences of

0:44:51.880 --> 0:44:55.600
<v Speaker 1>this cruel winter coming. Peter, he kind of continues in

0:44:55.640 --> 0:45:01.320
<v Speaker 1>this like apocalypse preacher persona and quote uh and states

0:45:01.320 --> 0:45:04.160
<v Speaker 1>that he is quote recommending prayer and repentance in lieu

0:45:04.160 --> 0:45:08.359
<v Speaker 1>of investments analysis insane things. They're right to investors. Yeah,

0:45:08.400 --> 0:45:11.960
<v Speaker 1>He's like, you should all repent to Christ. We're done.

0:45:13.600 --> 0:45:14.840
<v Speaker 2>That's unbelievable.

0:45:15.000 --> 0:45:20.560
<v Speaker 1>It's so sandwich board, is he what? Sorry? Yeah, Yeah,

0:45:20.560 --> 0:45:23.080
<v Speaker 1>he's basically doing like a fucking yeah sandwich board kind

0:45:23.120 --> 0:45:28.000
<v Speaker 1>of thing, right, is nigh.

0:45:26.600 --> 0:45:29.440
<v Speaker 2>Is there any chance, was there any chance that he

0:45:29.560 --> 0:45:31.279
<v Speaker 2>was just that was just a bit or he was

0:45:31.320 --> 0:45:32.239
<v Speaker 2>just kind of joke there.

0:45:32.520 --> 0:45:35.360
<v Speaker 1>I think he's being I think maybe there's an element

0:45:35.440 --> 0:45:38.640
<v Speaker 1>of that, but he doesn't. His what he does financially

0:45:39.120 --> 0:45:41.520
<v Speaker 1>is also what you would do if you legitimately expected

0:45:41.560 --> 0:45:45.960
<v Speaker 1>total collapse, right, Like he does initially short the dollar,

0:45:46.040 --> 0:45:49.759
<v Speaker 1>and there are initial like high yields. Right Like he

0:45:49.800 --> 0:45:52.240
<v Speaker 1>bets against some companies that are taken up by large loans,

0:45:52.239 --> 0:45:54.560
<v Speaker 1>and their yields in the first half of two thousand

0:45:54.560 --> 0:45:58.080
<v Speaker 1>and eight go up to like five times their prior rate. Right.

0:45:58.920 --> 0:46:00.680
<v Speaker 1>Kind of at the height of this that between six

0:46:00.719 --> 0:46:03.640
<v Speaker 1>point four and like eight billion dollars under management, right,

0:46:03.680 --> 0:46:05.040
<v Speaker 1>and this is a fund that back in like two

0:46:05.080 --> 0:46:07.880
<v Speaker 1>thousand and two or three was two hundred and sixty million.

0:46:08.040 --> 0:46:08.200
<v Speaker 2>Right.

0:46:08.280 --> 0:46:10.520
<v Speaker 1>So you can see why people are like, wow, this

0:46:10.600 --> 0:46:12.759
<v Speaker 1>is the future of investing. What a genius Peter is

0:46:12.800 --> 0:46:14.880
<v Speaker 1>And he looks like a genius in kind of the

0:46:14.960 --> 0:46:17.400
<v Speaker 1>early stages of that financial collapse. But again we're just

0:46:17.400 --> 0:46:20.879
<v Speaker 1>talking about the first half of two thousand and eight here. Now.

0:46:20.880 --> 0:46:23.879
<v Speaker 1>He described his school of thought on these matters as

0:46:23.880 --> 0:46:27.839
<v Speaker 1>being a global macro investor, which in his terms, meant

0:46:27.880 --> 0:46:31.160
<v Speaker 1>looking out at world events and basing your economic predictions

0:46:31.200 --> 0:46:33.960
<v Speaker 1>on kind of the vibe you felt about the times

0:46:34.080 --> 0:46:37.960
<v Speaker 1>in large, as opposed to the specific situation each of

0:46:38.000 --> 0:46:41.160
<v Speaker 1>those companies was in. He urged investors at Clarion to

0:46:41.200 --> 0:46:43.520
<v Speaker 1>make one trade per week, which chaf Can credits to

0:46:43.560 --> 0:46:47.560
<v Speaker 1>his combination of indecisiveness and high tolerance for risk. Quote.

0:46:47.719 --> 0:46:50.520
<v Speaker 1>Teal argued that the world was heading to end times.

0:46:50.840 --> 0:46:54.280
<v Speaker 1>Investment analysts often employ religious metaphors, speaking of the second

0:46:54.280 --> 0:46:57.560
<v Speaker 1>coming of bond yields or inequities apocalypse, but Teal was

0:46:57.600 --> 0:47:00.839
<v Speaker 1>not speaking metaphorically. The entire huge in order, he wrote,

0:47:00.880 --> 0:47:04.600
<v Speaker 1>could unravel in a relentless escalation of violence, famine, disease.

0:47:04.719 --> 0:47:07.239
<v Speaker 1>Wore a death against this future. It is far better

0:47:07.239 --> 0:47:09.880
<v Speaker 1>to save one's immortal soul and accumulate treasures in heaven,

0:47:09.880 --> 0:47:12.000
<v Speaker 1>in the eternal city of God, than it is to

0:47:12.040 --> 0:47:14.400
<v Speaker 1>a mass of fleeting fortune in the transient and passing

0:47:14.440 --> 0:47:16.399
<v Speaker 1>city of Man. And when you read it like that,

0:47:16.600 --> 0:47:19.120
<v Speaker 1>it's kind of hard to see that as not like,

0:47:19.400 --> 0:47:21.840
<v Speaker 1>I don't know, man, you're going If that's just totally

0:47:21.840 --> 0:47:24.040
<v Speaker 1>tongue in cheek, you're really going far with it.

0:47:24.480 --> 0:47:26.680
<v Speaker 2>Yeah, no, that is deep into the bit. I mean

0:47:26.719 --> 0:47:28.280
<v Speaker 2>you are really committing.

0:47:27.880 --> 0:47:30.319
<v Speaker 1>You're you're far too committed to this bit, and it's

0:47:30.360 --> 0:47:31.160
<v Speaker 1>not a great bit.

0:47:31.800 --> 0:47:33.680
<v Speaker 2>Yeah, that is a whole life of Brian.

0:47:34.040 --> 0:47:38.560
<v Speaker 1>Yeah right, right, Shit, that's so weird.

0:47:38.880 --> 0:47:41.399
<v Speaker 2>Yeah, this is this is a deeply weird guy.

0:47:41.600 --> 0:47:43.960
<v Speaker 1>Yeah, it's such a fucking strange fella.

0:47:44.440 --> 0:47:49.600
<v Speaker 2>It's pretty weird when like the young Blood transfer and

0:47:50.080 --> 0:47:55.160
<v Speaker 2>like bankrolling the like roided out wrestlers lawsuit over the

0:47:55.239 --> 0:47:59.320
<v Speaker 2>dudes are like sort of the bottom tier weird things

0:47:59.360 --> 0:48:01.560
<v Speaker 2>you do. Like the really weird stuff is the stuff

0:48:01.560 --> 0:48:04.319
<v Speaker 2>he says out and open to his own investors.

0:48:04.520 --> 0:48:07.160
<v Speaker 1>Yeah, well he's so strange.

0:48:08.680 --> 0:48:11.320
<v Speaker 2>Oh man, oh my god, I'm not going to be

0:48:11.360 --> 0:48:13.640
<v Speaker 2>as rich as I'm personally not, may not be as

0:48:13.760 --> 0:48:17.440
<v Speaker 2>rich as as I might have been before. My like

0:48:17.560 --> 0:48:20.480
<v Speaker 2>Wall Street buddies aren't going to be able to rapaciously

0:48:20.560 --> 0:48:23.920
<v Speaker 2>divide up loans the way they're were before. Yeure, society

0:48:24.000 --> 0:48:24.560
<v Speaker 2>is doomed.

0:48:24.680 --> 0:48:30.080
<v Speaker 1>Were if you hate people and you fundamentally think that

0:48:30.120 --> 0:48:33.000
<v Speaker 1>they're like messy little scum who need to be ruled,

0:48:33.440 --> 0:48:36.640
<v Speaker 1>you can't imagine things would go bad. If you're scared

0:48:36.840 --> 0:48:39.120
<v Speaker 1>about a financial collapse, you have to imagine they are

0:48:39.160 --> 0:48:42.520
<v Speaker 1>on the edge of eating each other, right, because they're

0:48:42.239 --> 0:48:45.480
<v Speaker 1>They're not any better than animals, right, And I'm not

0:48:45.520 --> 0:48:47.359
<v Speaker 1>trying to shit talk animals. I'm just saying I think

0:48:47.360 --> 0:48:50.680
<v Speaker 1>that's how Peter thinks about things, right, I think animals

0:48:50.719 --> 0:48:54.799
<v Speaker 1>are much better than people usually. But that's I think.

0:48:54.800 --> 0:48:58.200
<v Speaker 1>I think I'm accurately describing. That's how I think Peter feels.

0:48:58.280 --> 0:49:01.000
<v Speaker 1>I'm basing that off of vibes, like Peter was basic

0:49:01.280 --> 0:49:05.200
<v Speaker 1>thinking about the collapse of the world. Right, But I

0:49:05.239 --> 0:49:07.239
<v Speaker 1>have as good a record with vibes as Peter does,

0:49:07.280 --> 0:49:16.720
<v Speaker 1>at least. Uh yeah, yeah, here's some ads and we're

0:49:17.520 --> 0:49:24.239
<v Speaker 1>bad anyway. That's all very weird that Peter is so

0:49:24.360 --> 0:49:28.320
<v Speaker 1>kind of married to the fucking Bible as a hedge

0:49:28.320 --> 0:49:31.120
<v Speaker 1>fund guy. But the weirdness does mask there's a real

0:49:31.200 --> 0:49:35.480
<v Speaker 1>insight here right in that Peter again, he's going to

0:49:35.520 --> 0:49:37.840
<v Speaker 1>fuck up on taking advantage of this. He extends it

0:49:37.880 --> 0:49:41.160
<v Speaker 1>too far. I also think his fundamental analysis is correct,

0:49:41.239 --> 0:49:44.520
<v Speaker 1>which is he argues in that paper that investors are

0:49:44.560 --> 0:49:47.359
<v Speaker 1>going to be unable to as the housing market comes

0:49:47.440 --> 0:49:51.040
<v Speaker 1>unwound and as these increasing contradictions in the way our

0:49:51.080 --> 0:49:53.560
<v Speaker 1>economy is set up become impossible to ignore. And I think,

0:49:53.600 --> 0:49:55.759
<v Speaker 1>although Peter won't admit this, climate change is a big

0:49:55.800 --> 0:49:58.960
<v Speaker 1>part of that, investors are going to be unable and

0:49:59.040 --> 0:50:02.440
<v Speaker 1>unwilling to accept that things can't continue growing at the

0:50:02.520 --> 0:50:05.480
<v Speaker 1>rates that they'd always been growing, right, that that's not possible,

0:50:05.800 --> 0:50:10.440
<v Speaker 1>and rather than accept the inevitability of contraction or even collapse,

0:50:10.840 --> 0:50:16.040
<v Speaker 1>they will start a process of massively overvaluing every asset systematically,

0:50:16.280 --> 0:50:19.600
<v Speaker 1>causing an endless cascade of bubbles in every sector. And

0:50:19.640 --> 0:50:23.279
<v Speaker 1>that is what happened, right, that's today, that's the last

0:50:23.280 --> 0:50:27.560
<v Speaker 1>twenty years. Right, Like, he's not fundamentally wrong, but he

0:50:27.960 --> 0:50:30.359
<v Speaker 1>also overextends how bad it's going to be and how

0:50:30.440 --> 0:50:31.879
<v Speaker 1>quickly it's going to be that bad.

0:50:32.000 --> 0:50:32.200
<v Speaker 2>Right.

0:50:33.000 --> 0:50:35.239
<v Speaker 1>And the other bad move here is that if you

0:50:35.320 --> 0:50:37.839
<v Speaker 1>are a hedge fund guy, even though I think this

0:50:37.920 --> 0:50:42.080
<v Speaker 1>is fundamentally not incorrect analysis, it's a bad thing to

0:50:42.200 --> 0:50:45.160
<v Speaker 1>put out to the people investing money in you that

0:50:45.320 --> 0:50:47.360
<v Speaker 1>I think the end times are coming.

0:50:47.520 --> 0:50:47.719
<v Speaker 2>Right.

0:50:47.920 --> 0:50:50.279
<v Speaker 1>That does not make people want to keep money with you.

0:50:50.360 --> 0:50:52.680
<v Speaker 1>It doesn't make them want to invest more money with you.

0:50:53.000 --> 0:50:54.960
<v Speaker 1>It kind of makes them want to build bunkers and

0:50:54.960 --> 0:50:57.040
<v Speaker 1>maybe feel like they need some of that money liquid

0:50:57.080 --> 0:51:02.160
<v Speaker 1>to build bunkers, right right, Yeah, So Peter starts to

0:51:02.239 --> 0:51:04.480
<v Speaker 1>panic increasingly Later in two thousand and eight, as the

0:51:04.480 --> 0:51:08.239
<v Speaker 1>signs get worse, he holds meetings to Warren employees that

0:51:08.320 --> 0:51:10.880
<v Speaker 1>he thinks every brokerage in the country is going to

0:51:10.920 --> 0:51:13.839
<v Speaker 1>go under and there's going to be no currency, and

0:51:13.960 --> 0:51:16.680
<v Speaker 1>like he literally he has his company making sure they

0:51:16.719 --> 0:51:18.759
<v Speaker 1>have at least a couple grand or a thousand or

0:51:18.800 --> 0:51:21.279
<v Speaker 1>something on hand for every employee so that he can

0:51:21.400 --> 0:51:24.759
<v Speaker 1>keep his employees fed if all of the currency collapses.

0:51:24.960 --> 0:51:27.520
<v Speaker 1>They're talking about like buying gold bricks, like this is

0:51:27.560 --> 0:51:32.799
<v Speaker 1>like apocalypse hoarder nonsense. Nice, Like Peter is worried that

0:51:32.920 --> 0:51:37.040
<v Speaker 1>his employee best friends, who were his entire social group

0:51:37.200 --> 0:51:39.040
<v Speaker 1>are going to starve to death and he has to

0:51:39.080 --> 0:51:41.080
<v Speaker 1>make sure he has cash to pay for their food,

0:51:43.480 --> 0:51:46.080
<v Speaker 1>which is actually kind of sweet. Like it does show

0:51:46.120 --> 0:51:49.720
<v Speaker 1>Peter is to some extent capable of caring about other people,

0:51:50.160 --> 0:51:53.640
<v Speaker 1>if that's accurate, but not in a way that makes

0:51:53.680 --> 0:51:58.399
<v Speaker 1>them a good guy. But there's a degree of care there.

0:51:58.800 --> 0:52:00.480
<v Speaker 2>I mean, I think it's like who else live to

0:52:00.560 --> 0:52:01.000
<v Speaker 2>serve him?

0:52:01.360 --> 0:52:04.800
<v Speaker 1>Right right? I need to have I need to have cash,

0:52:04.840 --> 0:52:06.440
<v Speaker 1>so I can buy food, so I can maintain a

0:52:06.480 --> 0:52:08.560
<v Speaker 1>degree of control over these other people. So they have

0:52:08.600 --> 0:52:11.400
<v Speaker 1>to continue being my friends. Maybe that's it. Probably do

0:52:11.440 --> 0:52:11.879
<v Speaker 1>anything else?

0:52:11.920 --> 0:52:14.520
<v Speaker 2>Did they learn kung food? They did they start shooting?

0:52:14.520 --> 0:52:17.680
<v Speaker 1>You have to assume food. You have to assume there's

0:52:17.680 --> 0:52:21.160
<v Speaker 1>some stuff like you. I can't. I can't imagine that

0:52:21.239 --> 0:52:23.360
<v Speaker 1>you could believe this about the future and not be

0:52:23.440 --> 0:52:29.200
<v Speaker 1>buying guns and stuff right now. Peter's strong belief that

0:52:29.200 --> 0:52:30.880
<v Speaker 1>the tech bubble is going to burst and cause a

0:52:30.920 --> 0:52:35.320
<v Speaker 1>depression causes him to change, like clarium standard operating procedure

0:52:35.480 --> 0:52:37.920
<v Speaker 1>is that we're going to bet against the future stability

0:52:37.920 --> 0:52:40.240
<v Speaker 1>of the US economy, and that seems like that should

0:52:40.239 --> 0:52:41.879
<v Speaker 1>have been the first half of two thousand and eight.

0:52:41.880 --> 0:52:44.080
<v Speaker 1>That makes them a fuck load of money, right, and

0:52:44.080 --> 0:52:48.279
<v Speaker 1>in the second half it's going to cost them everything. Right. So,

0:52:48.320 --> 0:52:51.040
<v Speaker 1>because Peter's word is law, very little is expected of

0:52:51.080 --> 0:52:53.279
<v Speaker 1>his workers on a day to day basis, So life

0:52:53.280 --> 0:52:55.359
<v Speaker 1>of the company is like pretty chill during these early

0:52:55.400 --> 0:52:58.400
<v Speaker 1>apocalypse stages. According to chaef Gen, people played a lot

0:52:58.440 --> 0:53:00.719
<v Speaker 1>of chess and spent their free time to over how

0:53:00.719 --> 0:53:03.120
<v Speaker 1>they'd run a theoretical country if they had the freedom

0:53:03.160 --> 0:53:06.080
<v Speaker 1>to build it from the ground up. Quote. Everyone spent

0:53:06.120 --> 0:53:08.440
<v Speaker 1>a lot of time talking politics, although it was important

0:53:08.480 --> 0:53:10.880
<v Speaker 1>that those politics always be of the right wing variety.

0:53:11.120 --> 0:53:13.200
<v Speaker 1>An employee told me that it was common to hear

0:53:13.239 --> 0:53:15.640
<v Speaker 1>about talk about climate change denial and to see web

0:53:15.640 --> 0:53:18.560
<v Speaker 1>browsers open to v dare, a far right web site

0:53:18.600 --> 0:53:21.319
<v Speaker 1>with a long record of publishing white nationalist writing. Oh,

0:53:21.400 --> 0:53:24.000
<v Speaker 1>we'll be talking about that. It gets a lot worse

0:53:24.040 --> 0:53:27.680
<v Speaker 1>in terms of Vdair's shit, my man's. This had been

0:53:28.320 --> 0:53:31.800
<v Speaker 1>a good enough strategy for years, but Peter's inherent distrust

0:53:31.800 --> 0:53:34.080
<v Speaker 1>of tech businesses is going to cause him to miss

0:53:34.120 --> 0:53:36.120
<v Speaker 1>a lot of opportunities here, as well as his belief

0:53:36.160 --> 0:53:38.960
<v Speaker 1>that like collapse is inevitable. He turns down a chance

0:53:39.000 --> 0:53:42.920
<v Speaker 1>to invest in Tesla, which might be understandable given his

0:53:42.920 --> 0:53:45.040
<v Speaker 1>history with Elon. Right, if I can, if I can

0:53:45.120 --> 0:53:47.400
<v Speaker 1>be like, well, I get why you would miss this,

0:53:47.560 --> 0:53:49.799
<v Speaker 1>because you know what a mess he is, right, but

0:53:49.880 --> 0:53:52.560
<v Speaker 1>that is undoubtedly it's a bad financial decision. To not

0:53:52.560 --> 0:53:54.440
<v Speaker 1>get involved with Tesla in two thousand and eight is

0:53:54.480 --> 0:53:58.839
<v Speaker 1>a poor financial mission, right. He also turned down the money,

0:53:59.000 --> 0:54:01.279
<v Speaker 1>the chance to put money into YouTube when it was

0:54:01.320 --> 0:54:04.359
<v Speaker 1>still a startup and that is a catastrophic bit as

0:54:04.400 --> 0:54:07.240
<v Speaker 1>a tech founder. Missing YouTube is a big one.

0:54:08.480 --> 0:54:11.239
<v Speaker 2>That's also particularly funny because then later on he'll fund

0:54:11.360 --> 0:54:12.800
<v Speaker 2>Rumble the.

0:54:12.400 --> 0:54:13.920
<v Speaker 1>Right right Way YouTube.

0:54:14.040 --> 0:54:17.799
<v Speaker 2>Yeah right, yeah, so I think YouTube, but I got

0:54:17.800 --> 0:54:20.720
<v Speaker 2>assuming even better. I guess I got right wing YouTube

0:54:20.760 --> 0:54:21.720
<v Speaker 2>with Russell Brandan.

0:54:22.200 --> 0:54:23.920
<v Speaker 1>And this is like, this is right right Around the

0:54:23.960 --> 0:54:26.040
<v Speaker 1>same time he neglects to invest in YouTube is when

0:54:26.040 --> 0:54:28.560
<v Speaker 1>he neglects to take part in like the second funding

0:54:28.600 --> 0:54:31.200
<v Speaker 1>round for Facebook. So he misses a lot in a

0:54:31.320 --> 0:54:33.160
<v Speaker 1>row here, and then two thousand and eight comes about

0:54:33.200 --> 0:54:36.719
<v Speaker 1>and right, and after these initial successes, he bets on

0:54:36.800 --> 0:54:39.359
<v Speaker 1>the idea. So he's he's made money the first half

0:54:39.400 --> 0:54:41.320
<v Speaker 1>of the financial of two thousand and eight, of the

0:54:41.360 --> 0:54:45.040
<v Speaker 1>collapse year, by betting on against the dollar. But then

0:54:45.520 --> 0:54:48.160
<v Speaker 1>he has this belief that as the as the collapse

0:54:48.160 --> 0:54:51.000
<v Speaker 1>starts to run away, he believes, not only are some

0:54:51.040 --> 0:54:54.640
<v Speaker 1>banks going to collapse, every bank is going to be nationalized,

0:54:54.920 --> 0:54:57.880
<v Speaker 1>right and because he thinks that the government is going

0:54:57.920 --> 0:54:59.719
<v Speaker 1>to have to take over all of the banks. I

0:54:59.760 --> 0:55:01.840
<v Speaker 1>think this is just because he's also a libertarian, so

0:55:01.920 --> 0:55:04.200
<v Speaker 1>his nightmare is like this, you know, the government taking

0:55:04.239 --> 0:55:07.839
<v Speaker 1>over everything. He decides unlike all of the guys who

0:55:07.880 --> 0:55:10.799
<v Speaker 1>make money off of, you know, the collapse. Unlike all

0:55:10.840 --> 0:55:13.759
<v Speaker 1>the big short guys, he decides not to short any

0:55:13.840 --> 0:55:16.160
<v Speaker 1>banks because he thinks that since the government's going to

0:55:16.280 --> 0:55:19.680
<v Speaker 1>nationalize them all, once they get nationalized, their stock value

0:55:19.760 --> 0:55:23.920
<v Speaker 1>is going to soar. And so after predicting the collapse,

0:55:24.160 --> 0:55:27.239
<v Speaker 1>he puts nearly a billion dollars into stocks and all

0:55:27.280 --> 0:55:29.439
<v Speaker 1>of these banks, and like another one and a half

0:55:29.440 --> 0:55:31.960
<v Speaker 1>billion or so into Google and fucking of all of

0:55:31.960 --> 0:55:35.000
<v Speaker 1>the places to put like eight hundred million dollars, fucking Yahoo.

0:55:35.160 --> 0:55:42.480
<v Speaker 1>He puts eight undred million dollars in such a whiff.

0:55:42.600 --> 0:55:43.680
<v Speaker 1>It's such a fuck up.

0:55:45.160 --> 0:55:46.640
<v Speaker 2>Oh my god.

0:55:46.680 --> 0:55:52.320
<v Speaker 1>It's so funny, man, It's so fucking funny. And I had, again,

0:55:52.600 --> 0:55:54.920
<v Speaker 1>as a general rule, I actually, compared to most of

0:55:54.960 --> 0:55:57.239
<v Speaker 1>our guys, I respect Peter, you know, not in a

0:55:57.360 --> 0:56:00.120
<v Speaker 1>positive way, but just in a like it's dangerous not to.

0:56:00.680 --> 0:56:03.080
<v Speaker 1>But I also had thought he had been much more

0:56:03.120 --> 0:56:06.359
<v Speaker 1>successful than this. And it's so interesting to me that

0:56:06.760 --> 0:56:10.200
<v Speaker 1>he fucks up on these big investments while getting the

0:56:10.239 --> 0:56:16.319
<v Speaker 1>bigger picture kind of fundamentally right, which is is so humanizing, right,

0:56:16.520 --> 0:56:18.160
<v Speaker 1>is that's such a human thing to do. I've been

0:56:18.200 --> 0:56:21.359
<v Speaker 1>there myself, where like you, you predict a big thing

0:56:21.440 --> 0:56:25.799
<v Speaker 1>correctly and your micro response to that you fuck up

0:56:26.040 --> 0:56:29.960
<v Speaker 1>because of who you are, right, right, that's so human.

0:56:30.239 --> 0:56:34.839
<v Speaker 2>Yeah, but still, I mean, I think all banks are

0:56:34.840 --> 0:56:37.760
<v Speaker 2>going to fail, therefore I'm going to put a billion

0:56:37.800 --> 0:56:41.200
<v Speaker 2>dollars into them. Is wild? That is that.

0:56:41.200 --> 0:56:43.560
<v Speaker 1>Government's obviously get to nationalize every bank, right.

0:56:43.480 --> 0:56:46.680
<v Speaker 2>Yeah, that's really sniffing too much of your own.

0:56:46.520 --> 0:56:49.400
<v Speaker 1>Clue, it is. And it's like this, it's this failure,

0:56:49.440 --> 0:56:51.920
<v Speaker 1>it's this this belief that, like I believe that the

0:56:52.120 --> 0:56:54.319
<v Speaker 1>you know, the fucking Democrats who are going to come

0:56:54.360 --> 0:56:58.520
<v Speaker 1>into office are legitimately communists. They would never do the

0:56:58.560 --> 0:57:01.359
<v Speaker 1>capitalist thing of propping up the banks and just giving

0:57:01.400 --> 0:57:03.480
<v Speaker 1>these people free money to put a halt, like to

0:57:03.840 --> 0:57:07.400
<v Speaker 1>paper over their fuck ups. Right, Obviously they're going to

0:57:07.520 --> 0:57:11.520
<v Speaker 1>make this bid for ultimate power and nationalize everything, right,

0:57:11.520 --> 0:57:13.399
<v Speaker 1>And he's like, no, that's not what they did. Turns

0:57:13.400 --> 0:57:18.120
<v Speaker 1>out they are just owned by bankers. Yeah, sorry, sorry, Peter,

0:57:18.200 --> 0:57:21.000
<v Speaker 1>you guys won too much and now you've lost your money.

0:57:22.000 --> 0:57:25.000
<v Speaker 2>Just because you call every Democrat a socialist does not

0:57:25.120 --> 0:57:25.680
<v Speaker 2>mean in.

0:57:25.680 --> 0:57:31.439
<v Speaker 1>Fact, not what they are, not what they are. Good job,

0:57:32.680 --> 0:57:34.360
<v Speaker 1>So at the end of the year, and by you know,

0:57:34.440 --> 0:57:38.080
<v Speaker 1>the time Obama takes off as Peter has lost billions,

0:57:38.120 --> 0:57:40.160
<v Speaker 1>putting him in a similar bucket to people who had

0:57:40.160 --> 0:57:43.040
<v Speaker 1>failed completely to see that the crash was coming. After

0:57:43.120 --> 0:57:46.120
<v Speaker 1>being up by like five times in early to kind

0:57:46.120 --> 0:57:47.800
<v Speaker 1>of mid two thousand and eight, by the end of

0:57:47.800 --> 0:57:50.920
<v Speaker 1>the year, he's down five percent, right. And then, to

0:57:50.960 --> 0:57:54.480
<v Speaker 1>make matters worse, once kind of the collapse hits, he

0:57:54.600 --> 0:57:57.680
<v Speaker 1>dumps a shitload of his holdings while stock prices are

0:57:57.720 --> 0:58:00.840
<v Speaker 1>low because he assumes a deppression is and nothing is

0:58:00.880 --> 0:58:04.280
<v Speaker 1>going to rebound, and he needs cash. And then all

0:58:04.320 --> 0:58:06.880
<v Speaker 1>of this shit does rebound, and so he misses out

0:58:06.880 --> 0:58:10.800
<v Speaker 1>twice in a row. Here, investors begin to abandon Clarium,

0:58:10.800 --> 0:58:13.000
<v Speaker 1>which had been worth eight billion almost I think at

0:58:13.000 --> 0:58:14.560
<v Speaker 1>his at its height, and by the end of the

0:58:14.640 --> 0:58:16.560
<v Speaker 1>year was down to two billion dollars, like by two

0:58:16.600 --> 0:58:18.520
<v Speaker 1>thousand and nine, it's like a quarter of what it

0:58:18.560 --> 0:58:20.560
<v Speaker 1>had been at its height, right, which is a major

0:58:20.640 --> 0:58:27.040
<v Speaker 1>fuck up, you know, So yeah, fascinating stuff. Now, this

0:58:27.080 --> 0:58:30.280
<v Speaker 1>is where we also get back to Gawker, right kind

0:58:30.280 --> 0:58:33.360
<v Speaker 1>of two thousand and eight or so. Here I stated

0:58:33.400 --> 0:58:38.400
<v Speaker 1>earlier that Ryan Holiday argues Peter responded to Gawker's confrontational

0:58:38.480 --> 0:58:41.840
<v Speaker 1>tabloid expose style, right, which he saw as a danger

0:58:41.880 --> 0:58:44.760
<v Speaker 1>to weird geniuses like him who moved the species forward.

0:58:45.280 --> 0:58:49.120
<v Speaker 1>Chafkin makes a somewhat different argument quote Teal came to

0:58:49.120 --> 0:58:52.400
<v Speaker 1>believe that the real reason for the mass redemptions, which

0:58:52.440 --> 0:58:54.360
<v Speaker 1>is like all of the people taking their money out

0:58:54.360 --> 0:58:58.520
<v Speaker 1>of Clarium, was Gawker Media. Some of Clarium's big investors,

0:58:58.520 --> 0:59:01.760
<v Speaker 1>according to former employees, were Arab sovereign wealth funds controlled

0:59:01.760 --> 0:59:05.280
<v Speaker 1>by governments that considered homosexuality to be a crime. Teal

0:59:05.320 --> 0:59:07.840
<v Speaker 1>has never explicitly acknowledged this, but he has hinted at

0:59:07.880 --> 0:59:10.080
<v Speaker 1>why he may have wanted to keep his sexual orientation

0:59:10.160 --> 0:59:12.640
<v Speaker 1>out of view. So he a bunch of people pull

0:59:12.680 --> 0:59:14.800
<v Speaker 1>their money out of his fund in this period where

0:59:14.800 --> 0:59:17.640
<v Speaker 1>he is making repeated fuck ups, and he blames it

0:59:17.680 --> 0:59:20.600
<v Speaker 1>on Gawker outing him right.

0:59:21.120 --> 0:59:26.360
<v Speaker 2>I invest eight hundred million dollars in Yahoo places any Yahoo.

0:59:26.400 --> 0:59:27.640
<v Speaker 1>In two thousand and eight.

0:59:27.760 --> 0:59:32.640
<v Speaker 2>Homide Yeah, and like somehow that's.

0:59:32.000 --> 0:59:35.680
<v Speaker 1>Yeah, Nick Dayton made you put a billion dollars into Yahoo?

0:59:35.720 --> 0:59:40.400
<v Speaker 2>Brother, Yeah, I let my own weird like them to

0:59:40.480 --> 0:59:45.080
<v Speaker 2>steal your underwear. Yeah. So phychology warp my brain and

0:59:45.160 --> 0:59:46.840
<v Speaker 2>somehow that's Valley Wags for.

0:59:47.000 --> 0:59:50.320
<v Speaker 1>A billion dollars almost into yeah, like a billion dollars

0:59:50.360 --> 0:59:52.600
<v Speaker 1>into Google almost. That's probably a smart Yeah, definitely a

0:59:52.640 --> 0:59:56.760
<v Speaker 1>smart long term investment. But like Yahoo, Yahoo in two

0:59:56.840 --> 0:59:58.960
<v Speaker 1>thousand and eight, I was twenty and I knew that

0:59:59.080 --> 1:00:00.760
<v Speaker 1>Yahoo was a bad investments.

1:00:01.120 --> 1:00:06.280
<v Speaker 2>Yeah. Yeahoo's crazy.

1:00:04.320 --> 1:00:12.320
<v Speaker 1>That's so fucking funny. Oh man, my god. So I

1:00:12.320 --> 1:00:14.440
<v Speaker 1>think the other reason he's angry at Gawker here is

1:00:14.480 --> 1:00:16.880
<v Speaker 1>that Gker is reporting on a lot of his fuck

1:00:16.960 --> 1:00:18.560
<v Speaker 1>ups too, and I think in such a way that

1:00:18.600 --> 1:00:21.520
<v Speaker 1>he kind of blames them for why investors start pulling

1:00:21.560 --> 1:00:25.640
<v Speaker 1>out right, Gaker revealed our screw ups publicly in a

1:00:25.680 --> 1:00:28.400
<v Speaker 1>way that hurt us, right, and so and that, by

1:00:28.480 --> 1:00:31.160
<v Speaker 1>the way, again that this kind of view that like, oh,

1:00:31.160 --> 1:00:34.240
<v Speaker 1>they out at him and so he destroyed them. That's

1:00:34.720 --> 1:00:36.720
<v Speaker 1>you know, that makes the case like the dangers of

1:00:36.720 --> 1:00:40.000
<v Speaker 1>a petty billionaire seemed clearer with that statement. But this

1:00:40.080 --> 1:00:43.160
<v Speaker 1>is much more standard, evil rich guy, They damaged my

1:00:43.240 --> 1:00:46.360
<v Speaker 1>business interests by reporting on me screwing up, and so

1:00:46.480 --> 1:00:49.240
<v Speaker 1>I wanted them out right. That's perfectly normal, rich guy,

1:00:49.240 --> 1:00:54.560
<v Speaker 1>evil bullshit, right, Yeah, So this period, though, you know,

1:00:54.640 --> 1:00:57.080
<v Speaker 1>while he is apparently burning with rage at Gker the

1:00:57.160 --> 1:00:58.880
<v Speaker 1>end of the Bush years to start of the Obama era,

1:00:59.280 --> 1:01:02.320
<v Speaker 1>it's not a whole bad time for him either, because

1:01:02.320 --> 1:01:05.200
<v Speaker 1>while he's again he's super rich, so he's insulated personally

1:01:05.200 --> 1:01:08.760
<v Speaker 1>from any real consequences. And while his clarium investments fail

1:01:08.840 --> 1:01:11.360
<v Speaker 1>and he stops being like the lauded, you know, hedge

1:01:11.360 --> 1:01:15.000
<v Speaker 1>fund genius of the new generation, Peter ces success in

1:01:15.040 --> 1:01:18.160
<v Speaker 1>another venture which had been launched based on the Egor

1:01:18.280 --> 1:01:21.520
<v Speaker 1>software that he's depending on. I've heard a couple of

1:01:21.520 --> 1:01:24.040
<v Speaker 1>different versions of the story. One is that Levchin, his

1:01:24.320 --> 1:01:28.240
<v Speaker 1>founder at PayPal Buddy codes it some of them. The

1:01:28.280 --> 1:01:30.720
<v Speaker 1>intercept reporting says it was another guy at PayPal who

1:01:30.800 --> 1:01:32.600
<v Speaker 1>coded it. I don't know which one of them coded it.

1:01:33.000 --> 1:01:35.480
<v Speaker 1>But Igor is this software that they had started at

1:01:35.520 --> 1:01:39.560
<v Speaker 1>PayPal to stop Russian scammers. Right that there are allegations

1:01:39.600 --> 1:01:42.080
<v Speaker 1>and lawsuits that it was kind of stolen in part

1:01:42.120 --> 1:01:44.840
<v Speaker 1>from another company, But that's a story for another day.

1:01:45.360 --> 1:01:48.800
<v Speaker 1>Peter is as obsessed with security and fighting terrorism as

1:01:48.800 --> 1:01:51.120
<v Speaker 1>any neo coon, and he starts to focus on the

1:01:51.160 --> 1:01:54.680
<v Speaker 1>idea that like Egor, might be useful for something Besides

1:01:54.720 --> 1:01:58.000
<v Speaker 1>fighting fraud, perhaps this could also allow the government to

1:01:58.120 --> 1:02:01.080
<v Speaker 1>hunt and kill terrorists that had Peter to fear for

1:02:01.120 --> 1:02:03.520
<v Speaker 1>his own life. I'm going to have to go back

1:02:03.560 --> 1:02:06.040
<v Speaker 1>in time here, and I hate to jump around like this,

1:02:06.120 --> 1:02:08.120
<v Speaker 1>but Peter's involved in too many things to not do

1:02:08.200 --> 1:02:10.280
<v Speaker 1>this from time to time. So let's go back to

1:02:10.360 --> 1:02:13.200
<v Speaker 1>July of two thousand and four, right when he and

1:02:13.240 --> 1:02:17.080
<v Speaker 1>a conservative chaplain from Stanford organize a six day seminar

1:02:17.120 --> 1:02:21.360
<v Speaker 1>with Renee Girard. The scapegoat philosopher Guy Til had attacked

1:02:21.360 --> 1:02:24.760
<v Speaker 1>the Bush administration then for not being cruel enough to Muslims,

1:02:24.920 --> 1:02:27.600
<v Speaker 1>and had gone after the ACLU for their unhinged support

1:02:27.640 --> 1:02:30.240
<v Speaker 1>of civil liberties at the expense of security. He had

1:02:30.320 --> 1:02:32.720
<v Speaker 1>encouraged the creation of a new system, which he built

1:02:32.760 --> 1:02:35.240
<v Speaker 1>as a replacement for the UN. He was like, instead

1:02:35.240 --> 1:02:38.160
<v Speaker 1>of the UN, we should have an international consortium of

1:02:38.200 --> 1:02:41.760
<v Speaker 1>public and private intelligence companies all working together to quote

1:02:42.160 --> 1:02:46.720
<v Speaker 1>forge the decisive path to a truly global packs Americana. Right,

1:02:46.800 --> 1:02:50.800
<v Speaker 1>this American piece that intelligence agencies can bring us if

1:02:50.800 --> 1:02:53.680
<v Speaker 1>we give them enough money and power to murder people

1:02:53.720 --> 1:02:59.760
<v Speaker 1>with drones. It's so why yeah, and Igor at this point,

1:02:59.760 --> 1:03:02.680
<v Speaker 1>it's just a fancy way of what I call making

1:03:02.680 --> 1:03:04.840
<v Speaker 1>a crazy board, right, that thing you see in like

1:03:04.920 --> 1:03:07.320
<v Speaker 1>movies and TV, you know, True Detective where you've got

1:03:07.360 --> 1:03:09.440
<v Speaker 1>like all the pictures connected by bits of string. Right,

1:03:09.840 --> 1:03:11.720
<v Speaker 1>IGOR is a way of doing that on the computer

1:03:11.880 --> 1:03:13.880
<v Speaker 1>right where you're plugging it. And it also is pulling

1:03:14.000 --> 1:03:16.480
<v Speaker 1>from you can have it pull from. Oh, I know

1:03:16.520 --> 1:03:18.640
<v Speaker 1>that we're looking for a guy who drives a who

1:03:18.640 --> 1:03:20.400
<v Speaker 1>lives in the state and drives a blue car, and

1:03:20.440 --> 1:03:22.080
<v Speaker 1>as a DUI, I want you to pull up from

1:03:22.120 --> 1:03:23.720
<v Speaker 1>like all of these records. You have access to everyone

1:03:23.760 --> 1:03:25.560
<v Speaker 1>who fits that, right, and we can add them to

1:03:25.560 --> 1:03:26.520
<v Speaker 1>the crazy board, you know.

1:03:27.640 --> 1:03:31.000
<v Speaker 2>And it was like, look, it's like starting at nine

1:03:31.000 --> 1:03:34.840
<v Speaker 2>to eleven especially, there was like the fantasy, the uber

1:03:34.960 --> 1:03:38.360
<v Speaker 2>fantasy of all these spook and spook adjacent types and

1:03:38.400 --> 1:03:41.080
<v Speaker 2>all tech types that wanted to make money off of them,

1:03:41.440 --> 1:03:43.320
<v Speaker 2>was that you know, you could have sort of like

1:03:43.640 --> 1:03:45.360
<v Speaker 2>you know, the equivalent of maybe what we call an

1:03:45.360 --> 1:03:51.040
<v Speaker 2>AI today, right that like could basically predict a terrorists

1:03:51.040 --> 1:03:52.800
<v Speaker 2>we're going to strike before they were going to strike,

1:03:53.040 --> 1:03:54.360
<v Speaker 2>you know, they were going to call you know, they

1:03:54.360 --> 1:03:56.720
<v Speaker 2>were going to stop the next nine to eleven before

1:03:57.120 --> 1:03:59.560
<v Speaker 2>the guys even you know, had really hatched the plan.

1:04:00.160 --> 1:04:02.120
<v Speaker 2>And so there have been a bunch of programs that

1:04:02.240 --> 1:04:06.680
<v Speaker 2>started and failed, you know, before then. And you know,

1:04:06.720 --> 1:04:09.280
<v Speaker 2>there were some that were in existence and law enforcement,

1:04:09.600 --> 1:04:11.280
<v Speaker 2>but they were clunky. There were you know, there were

1:04:11.280 --> 1:04:14.200
<v Speaker 2>government software. So they did they look shitty, and they

1:04:14.400 --> 1:04:17.400
<v Speaker 2>you know, and and and they didn't work so well.

1:04:17.840 --> 1:04:21.600
<v Speaker 2>And then and they didn't have real Silicon Valley talent,

1:04:22.400 --> 1:04:24.360
<v Speaker 2>like yeah, these guys did.

1:04:25.040 --> 1:04:27.520
<v Speaker 1>Yeah, So I think it could be a little hrd

1:04:27.560 --> 1:04:31.360
<v Speaker 1>for people to visualize what Igor did, what this software does,

1:04:31.400 --> 1:04:33.320
<v Speaker 1>this software becomes Palenteer does. So I'm going to quote

1:04:33.320 --> 1:04:36.320
<v Speaker 1>from an article in Bloomberg by Peter Waldman, Lizette Chapman,

1:04:36.400 --> 1:04:40.360
<v Speaker 1>and Jordan Robertson. Here, the software Clones combs through disparate

1:04:40.440 --> 1:04:44.280
<v Speaker 1>data sources, financial documents, airline reservations, cell phone records, social

1:04:44.320 --> 1:04:48.160
<v Speaker 1>media postings, and searches for connections that human analysts might miss.

1:04:48.400 --> 1:04:51.120
<v Speaker 1>It then presents the linkages and colorful, easy to interpret

1:04:51.160 --> 1:04:56.200
<v Speaker 1>graphics that look like spiderwebs. So, based on this technology,

1:04:56.280 --> 1:04:59.200
<v Speaker 1>Peter founds Palenteer that same year, two thousand and four,

1:05:00.200 --> 1:05:03.200
<v Speaker 1>and Palaeer is the name of the infamous seeing stones

1:05:03.400 --> 1:05:05.320
<v Speaker 1>in the Lord of the Rings, which are you know,

1:05:05.840 --> 1:05:08.360
<v Speaker 1>the most famously the one is owned by the evil

1:05:08.400 --> 1:05:11.960
<v Speaker 1>wizards sorrowmon. Right, So if you're naming your company that

1:05:12.080 --> 1:05:15.480
<v Speaker 1>exists to provide this like seeing stone to the highest

1:05:15.520 --> 1:05:21.680
<v Speaker 1>bidder palateer, that's explicitly evil. Right. This isn't like a

1:05:21.800 --> 1:05:24.200
<v Speaker 1>case where like the good guys have their own seeing stones.

1:05:24.240 --> 1:05:27.000
<v Speaker 1>It's just the bad guys. It's a bad thing to have.

1:05:27.480 --> 1:05:33.040
<v Speaker 1>It connects you inevitably to Sauron. Like anyway, very fun.

1:05:33.200 --> 1:05:36.520
<v Speaker 1>I love fiction, now, Peter, one of the things that

1:05:36.640 --> 1:05:42.080
<v Speaker 1>interesting about fucking Pallenteer is that, like with most of

1:05:42.080 --> 1:05:44.120
<v Speaker 1>his companies, Peter has an interest in this, but he

1:05:44.160 --> 1:05:46.560
<v Speaker 1>also has one of his close friends actually running shit,

1:05:46.920 --> 1:05:50.440
<v Speaker 1>being the day to day guy organizing everything, and Peter's

1:05:50.480 --> 1:05:54.200
<v Speaker 1>friend who helps him run. Palenteer is famously always described

1:05:54.240 --> 1:05:57.720
<v Speaker 1>as his most liberal friend, a guy named Alex Karp,

1:05:57.920 --> 1:06:02.840
<v Speaker 1>who Bloomberg identifies as a self described neo Marxist. Now,

1:06:03.400 --> 1:06:04.960
<v Speaker 1>I don't know about Alex, you know, like, what the

1:06:05.000 --> 1:06:07.480
<v Speaker 1>fuck do you mean about as the guys starting the

1:06:07.520 --> 1:06:11.120
<v Speaker 1>capitalist spy firm? How can you consider yourself a neo Marxist?

1:06:11.200 --> 1:06:14.560
<v Speaker 1>But also some Marxists or boot liquors. So maybe that's

1:06:14.600 --> 1:06:16.160
<v Speaker 1>the kind of guy that Alex Karp is.

1:06:17.120 --> 1:06:20.000
<v Speaker 2>Look, there's plenty of people that you know or yeah,

1:06:20.080 --> 1:06:21.520
<v Speaker 2>you know whatever.

1:06:21.280 --> 1:06:25.560
<v Speaker 1>The communists and spy agencies, right, yeah, yeah, Or.

1:06:26.320 --> 1:06:27.440
<v Speaker 2>What I was going to say is, you know whatever

1:06:27.440 --> 1:06:30.120
<v Speaker 2>the far left equivalent of a limousine liberal is. Those

1:06:30.120 --> 1:06:31.520
<v Speaker 2>people are definitely out there.

1:06:31.800 --> 1:06:35.320
<v Speaker 1>Yeah, the fucking CIA socialist or something like that. I guess, yeah,

1:06:35.800 --> 1:06:39.960
<v Speaker 1>there you oh, there you go. So getting off the

1:06:39.960 --> 1:06:43.320
<v Speaker 1>ground is slow going at first for Pallunteer, for this

1:06:43.400 --> 1:06:45.320
<v Speaker 1>is a hard thing. It's a really hard industry to

1:06:45.320 --> 1:06:48.600
<v Speaker 1>break into, right because intel agencies are first and foremost

1:06:48.680 --> 1:06:51.160
<v Speaker 1>government agencies, and if you know anything about the government,

1:06:51.440 --> 1:06:54.440
<v Speaker 1>getting a government agency to adopt a new software tool

1:06:54.880 --> 1:06:57.960
<v Speaker 1>is a brutal thing to do, right. It is very

1:06:58.000 --> 1:07:00.560
<v Speaker 1>hard to convince them to make moves like that. It

1:07:00.560 --> 1:07:02.720
<v Speaker 1>doesn't matter what kind of agency it is. This is

1:07:02.760 --> 1:07:06.640
<v Speaker 1>always an uphill struggle. So in order to aid Pallenteer

1:07:06.800 --> 1:07:08.880
<v Speaker 1>in kind of getting this buy in, they needed to

1:07:08.920 --> 1:07:11.200
<v Speaker 1>really start to take off. Peter brought in some of

1:07:11.200 --> 1:07:14.200
<v Speaker 1>the most ghoulish neocons he could find to apply pressure

1:07:14.200 --> 1:07:18.640
<v Speaker 1>in DC, and this included friend of the Pod John Poindexter,

1:07:18.800 --> 1:07:22.840
<v Speaker 1>who oh JP had worked for Ronald Reagan until he

1:07:22.920 --> 1:07:25.720
<v Speaker 1>was convicted of lying to Congress about Iran contra. He

1:07:25.760 --> 1:07:29.960
<v Speaker 1>then got kind of quote unquote exonerated and gets hired

1:07:30.000 --> 1:07:34.560
<v Speaker 1>by Dick Cheney to craft the Total Infraation Awareness Program.

1:07:34.840 --> 1:07:37.720
<v Speaker 1>This was a Bush era intelligence mission with a seemingly

1:07:37.800 --> 1:07:40.360
<v Speaker 1>kind of reasonable goal. Right, We're going to collect all

1:07:40.440 --> 1:07:44.880
<v Speaker 1>of the data we can on everything happening, food prices, YadA, YadA, YadA,

1:07:45.000 --> 1:07:48.600
<v Speaker 1>and these different areas that we have military interests in,

1:07:48.960 --> 1:07:52.160
<v Speaker 1>and we're going to have algorithms comb that data to

1:07:52.240 --> 1:07:56.320
<v Speaker 1>spot patterns that might be indicative of terrorist groups operating

1:07:56.360 --> 1:07:58.920
<v Speaker 1>beneath the surface. Right. It's one of those things that

1:07:59.120 --> 1:08:02.520
<v Speaker 1>sounds reasonable on its face. If you look at how

1:08:02.520 --> 1:08:05.000
<v Speaker 1>the War on Terror went, none of this ever works

1:08:05.040 --> 1:08:07.440
<v Speaker 1>out quite as way well as they think it does. Right,

1:08:07.720 --> 1:08:09.880
<v Speaker 1>But the smart guys in the room are all like, obviously,

1:08:09.960 --> 1:08:12.280
<v Speaker 1>this is how we win the war on Terror back then, you.

1:08:12.200 --> 1:08:14.440
<v Speaker 2>Know, yeah, I mean that was the whole ship. That

1:08:14.560 --> 1:08:18.200
<v Speaker 2>was the whole thing for these guys, yep was you

1:08:18.200 --> 1:08:21.840
<v Speaker 2>know it was going to be uh you know, what's

1:08:21.880 --> 1:08:24.120
<v Speaker 2>the Tom Cruise movie? Uh?

1:08:25.320 --> 1:08:26.519
<v Speaker 1>Right, yeah, we're gonna know about it.

1:08:28.200 --> 1:08:30.280
<v Speaker 2>Yeah yeah. And they were going to you know, put

1:08:30.320 --> 1:08:32.639
<v Speaker 2>money to the or or they're gonna you know, feed

1:08:32.640 --> 1:08:34.800
<v Speaker 2>the information your goals and they're going to feed you

1:08:34.840 --> 1:08:38.200
<v Speaker 2>a red ball. That was the whole thing there. And yeah,

1:08:38.280 --> 1:08:41.960
<v Speaker 2>volunteer got every single last one of the you know,

1:08:42.640 --> 1:08:46.400
<v Speaker 2>members of this church of this like you know, weird

1:08:46.920 --> 1:08:50.920
<v Speaker 2>Spye church to advocate for them. The other thing was

1:08:51.000 --> 1:08:53.000
<v Speaker 2>like you couldn't walk into a train in d C

1:08:53.600 --> 1:08:54.400
<v Speaker 2>without there.

1:08:54.240 --> 1:08:57.799
<v Speaker 1>Being a oh yeah yeah.

1:08:57.840 --> 1:09:02.960
<v Speaker 2>And and like every guy that you know and hated

1:09:03.040 --> 1:09:07.200
<v Speaker 2>Muslims and love Star Wars was promoting what.

1:09:08.800 --> 1:09:15.879
<v Speaker 1>A brand they have, So they bring out John Poindex.

1:09:16.040 --> 1:09:17.920
<v Speaker 1>Now it's important here to note that EGOR, which is

1:09:17.920 --> 1:09:21.120
<v Speaker 1>what palent Heer is selling at this point, didn't gather

1:09:21.280 --> 1:09:24.120
<v Speaker 1>or create new information of its own. Right, This is

1:09:24.120 --> 1:09:27.280
<v Speaker 1>not a Big Brother system. This is a an algorithm

1:09:27.320 --> 1:09:30.400
<v Speaker 1>that works off of the extant Big Brother system, right,

1:09:30.560 --> 1:09:34.280
<v Speaker 1>organizing all of the info that the existing surveillance operations

1:09:34.320 --> 1:09:38.519
<v Speaker 1>can put at your disposal. Right, it's data mining, you know. Now,

1:09:38.560 --> 1:09:41.960
<v Speaker 1>One early concern is that analysts using EGOR would use

1:09:42.000 --> 1:09:44.360
<v Speaker 1>the vast array of catalog data at their disposal to

1:09:44.400 --> 1:09:47.200
<v Speaker 1>stalk and harass their ex girlfriends, which, if you know

1:09:47.280 --> 1:09:50.240
<v Speaker 1>how cops work, is a thing that happens constantly. Anytime

1:09:50.240 --> 1:09:53.439
<v Speaker 1>you've got a database that like a certain chunk of

1:09:53.479 --> 1:09:55.280
<v Speaker 1>employees have access to, some of them are going to

1:09:55.360 --> 1:09:56.640
<v Speaker 1>use it to stock their girlfriends.

1:09:56.720 --> 1:09:56.840
<v Speaker 2>Right.

1:09:57.200 --> 1:10:01.240
<v Speaker 1>This is a known issue here. One of the ways

1:10:01.240 --> 1:10:03.080
<v Speaker 1>in which they sell themselves to a lot of these

1:10:03.080 --> 1:10:06.479
<v Speaker 1>intel agencies is Alex KRP promises, We're going to make

1:10:06.479 --> 1:10:09.519
<v Speaker 1>it impossible for cops to stock their ex girlfriends because

1:10:09.560 --> 1:10:12.120
<v Speaker 1>we're going to log every search request made into the

1:10:12.160 --> 1:10:14.920
<v Speaker 1>system in a way that will allow you to audit them. Right. So,

1:10:15.080 --> 1:10:17.080
<v Speaker 1>I mean they're selling point. It's like we're going to

1:10:17.080 --> 1:10:21.320
<v Speaker 1>actually provide accountability in the spook process. Right. Chaef Get

1:10:21.360 --> 1:10:23.400
<v Speaker 1>describes this as a key part of the company's pitch,

1:10:23.439 --> 1:10:26.559
<v Speaker 1>but he also writes one of Palenteer's former engineers were

1:10:26.560 --> 1:10:29.240
<v Speaker 1>called meetings during which government clients would suggest trying to

1:10:29.320 --> 1:10:31.639
<v Speaker 1>use the database to look up an ex girlfriend immediately

1:10:31.680 --> 1:10:34.960
<v Speaker 1>after hearing the whole privacy spiel. Palenteer employees would never

1:10:35.000 --> 1:10:38.080
<v Speaker 1>object to these requests, this person said. Instead, they would

1:10:38.120 --> 1:10:40.400
<v Speaker 1>remind clients that searches were logged and then allow them

1:10:40.400 --> 1:10:41.960
<v Speaker 1>to look up whoever they want it, no matter how

1:10:42.000 --> 1:10:47.840
<v Speaker 1>flimsy the pretext. Yeah, that's how that always works. Ah,

1:10:47.880 --> 1:10:48.479
<v Speaker 1>every time.

1:10:51.000 --> 1:10:54.639
<v Speaker 2>You don't need a predictive algorithm to predict that one,

1:10:54.720 --> 1:10:55.320
<v Speaker 2>do you? Yeah?

1:10:55.479 --> 1:10:57.040
<v Speaker 1>No, you shared out, you shared that.

1:10:57.760 --> 1:10:57.960
<v Speaker 2>Yeah.

1:10:58.160 --> 1:11:00.800
<v Speaker 1>Get you give people a computer spot device and they

1:11:00.800 --> 1:11:05.280
<v Speaker 1>are going to stock their girlfriends ex girlfriends. Yeah. Now,

1:11:05.320 --> 1:11:08.200
<v Speaker 1>thanks to their famous friends and infinite cash reserves, Palaentteer

1:11:08.240 --> 1:11:11.080
<v Speaker 1>managed to get contracts with the CIA and the NYPD,

1:11:11.439 --> 1:11:14.360
<v Speaker 1>but actual adoption on a wide scale wouldn't happen without

1:11:14.360 --> 1:11:17.799
<v Speaker 1>corporate purchases because no one in intelligence trusted a product

1:11:17.800 --> 1:11:21.000
<v Speaker 1>that only the government used. Peter tried to force the

1:11:21.000 --> 1:11:25.040
<v Speaker 1>government's hand here by selling other hedge funds, like selling

1:11:25.080 --> 1:11:28.360
<v Speaker 1>Igor to other finance companies, right, and he marketed it

1:11:28.400 --> 1:11:31.280
<v Speaker 1>as Palenteer Finance. So we've got this software that the

1:11:31.840 --> 1:11:34.280
<v Speaker 1>government's interested in using. It is the spy software, but

1:11:34.400 --> 1:11:37.320
<v Speaker 1>you can use it to predict which kind of investments

1:11:37.320 --> 1:11:39.840
<v Speaker 1>are going to work out best. Right by gathering all

1:11:39.840 --> 1:11:41.759
<v Speaker 1>of this data and using it to predict the future

1:11:41.760 --> 1:11:44.960
<v Speaker 1>of finance. Now, this is a massive failure as an

1:11:44.960 --> 1:11:48.479
<v Speaker 1>actual finance product because it doesn't work very well. People

1:11:48.479 --> 1:11:50.920
<v Speaker 1>don't really make a lot of money off of Palenteer

1:11:50.960 --> 1:11:54.000
<v Speaker 1>finance advising their trades, but it works out as a

1:11:54.000 --> 1:11:56.560
<v Speaker 1>business decision because they're able to get a couple of

1:11:56.600 --> 1:11:59.320
<v Speaker 1>different finance companies to buy into it, and then they

1:11:59.360 --> 1:12:01.200
<v Speaker 1>can go back to the government and say, hey, look,

1:12:01.479 --> 1:12:04.880
<v Speaker 1>this company and that company already using it to make trades. Obviously,

1:12:05.040 --> 1:12:07.760
<v Speaker 1>DC should be using this to fight terrorism, right, And

1:12:07.800 --> 1:12:09.960
<v Speaker 1>the government's like, oh, well, some bank bought it, so

1:12:10.000 --> 1:12:11.880
<v Speaker 1>I guess we should as well, like.

1:12:11.920 --> 1:12:15.160
<v Speaker 2>Yeah, he's yeah, and there's they're I mean, looking government

1:12:15.160 --> 1:12:17.920
<v Speaker 2>there's always like, you know, they're constantly being like, oh,

1:12:17.960 --> 1:12:20.439
<v Speaker 2>we're falling behind. You know, the private sector really knows

1:12:20.560 --> 1:12:21.080
<v Speaker 2>even though.

1:12:20.920 --> 1:12:22.639
<v Speaker 1>It works, they wouldn't make a big fuck up.

1:12:23.160 --> 1:12:27.120
<v Speaker 2>Yeah exactly. Yeah, yeah, if only we could run government

1:12:27.200 --> 1:12:33.320
<v Speaker 2>more effectively like a business. Yeah, And I mean that,

1:12:33.560 --> 1:12:35.720
<v Speaker 2>I mean it's totally how it worked. It's totally how

1:12:35.720 --> 1:12:39.400
<v Speaker 2>it worked. Our adversaries can use these tools freely. Why

1:12:39.400 --> 1:12:40.160
<v Speaker 2>shouldn't we.

1:12:40.120 --> 1:12:44.320
<v Speaker 1>Why shouldn't we? And obviously as soon as the public sector,

1:12:44.400 --> 1:12:46.559
<v Speaker 1>as soon as actually like the CIA and the FBI

1:12:46.720 --> 1:12:50.559
<v Speaker 1>and the NYPD start putting money into Palenteer, then even

1:12:50.600 --> 1:12:54.599
<v Speaker 1>though Palenteer finance had kind of not done great. A

1:12:54.600 --> 1:12:57.040
<v Speaker 1>lot of banks and finance agencies start to be like, oh,

1:12:57.040 --> 1:12:58.320
<v Speaker 1>I guess well, we have to get involved in the

1:12:58.360 --> 1:13:00.000
<v Speaker 1>government's buying this stuff. So we've got to buy it.

1:13:00.040 --> 1:13:02.439
<v Speaker 1>We've got to get and so in two thousand and nine,

1:13:02.560 --> 1:13:07.599
<v Speaker 1>JP Morgan CEO Jamie Diamond future future subject of the Pole,

1:13:08.720 --> 1:13:15.280
<v Speaker 1>gets purchases like makes a contract with Palenteer. Now almost

1:13:15.360 --> 1:13:17.960
<v Speaker 1>the instant they and they're doing this as like a

1:13:18.000 --> 1:13:20.080
<v Speaker 1>security measure. We want to we want we have like

1:13:20.120 --> 1:13:22.719
<v Speaker 1>a division in our company that's looking for evidence based

1:13:22.720 --> 1:13:25.680
<v Speaker 1>on like the communications our employees have internally that we

1:13:25.760 --> 1:13:27.920
<v Speaker 1>might have an employee who's breaking the law. Right, that's

1:13:27.960 --> 1:13:30.040
<v Speaker 1>part of compliance. Right, we want to be there's a

1:13:30.040 --> 1:13:32.640
<v Speaker 1>degree to which we're legally obligated to spy on our

1:13:32.640 --> 1:13:37.080
<v Speaker 1>employees making investment decisions to make sure nobody's doing anything criminal. Right. Sure,

1:13:37.520 --> 1:13:40.000
<v Speaker 1>So that's why they get this software. The instant they

1:13:40.080 --> 1:13:42.280
<v Speaker 1>get it, they're head of security who's like using the

1:13:42.280 --> 1:13:45.120
<v Speaker 1>Palenteer software, uses it to spy on the entire c

1:13:45.200 --> 1:13:47.880
<v Speaker 1>suite for no real reason, right, Like he loses his

1:13:48.000 --> 1:13:50.719
<v Speaker 1>mind with power and starts stalking all of the people

1:13:50.800 --> 1:13:55.559
<v Speaker 1>running the company. This guy's name was Peter Kovicia, and

1:13:55.600 --> 1:13:58.800
<v Speaker 1>he was a former secret serviceman who ran again a

1:13:58.800 --> 1:14:01.040
<v Speaker 1>group in the company that was taped with using algorithms

1:14:01.040 --> 1:14:03.320
<v Speaker 1>to monitor employees. And I'm going to quote again from

1:14:03.320 --> 1:14:06.320
<v Speaker 1>Bloomberg here. Aided by as many as one hundred and

1:14:06.320 --> 1:14:10.240
<v Speaker 1>twenty forward deployed engineers from the data mining company Palateer Technologies,

1:14:10.640 --> 1:14:14.639
<v Speaker 1>Kavicia's group vacuumed up emails and browser histories, GPS locations

1:14:14.680 --> 1:14:18.120
<v Speaker 1>from company issued smartphones, printer and download activity, and transcripts

1:14:18.120 --> 1:14:22.759
<v Speaker 1>of digitally recorded phone conversations. Pellenteer software aggregated, searched, sorted,

1:14:22.800 --> 1:14:25.960
<v Speaker 1>and analyzed these records, surfacing keywords and patterns of behavior

1:14:25.960 --> 1:14:29.200
<v Speaker 1>that Kavichia's team had flagged for potential abuse of corporate secrets.

1:14:29.520 --> 1:14:33.160
<v Speaker 1>Pellenteer's algorithm, for example, alerted the Insider Threat team when

1:14:33.200 --> 1:14:36.240
<v Speaker 1>an employee started badging into work lated and usual, a

1:14:36.360 --> 1:14:39.840
<v Speaker 1>sign of potential disgruntlement that would trigger further scrutiny and

1:14:40.560 --> 1:14:45.320
<v Speaker 1>possible physical surveillance after hours by bank security personnel. So

1:14:46.000 --> 1:14:49.240
<v Speaker 1>that's nuts, but that's also what he's supposed to be doing.

1:14:49.320 --> 1:14:51.840
<v Speaker 1>But right after, right as soon as they get access

1:14:51.840 --> 1:14:54.080
<v Speaker 1>to this, Kavicia goes rogue and I'm going to continue

1:14:54.120 --> 1:14:57.879
<v Speaker 1>with that quote. Former JP Morgan colleagues described the environment

1:14:57.920 --> 1:15:01.280
<v Speaker 1>as Wall Street meets Apocalypse now with Kovichia as Colonel

1:15:01.360 --> 1:15:04.760
<v Speaker 1>kurtz ensconced upriver in his office suite eight floors above

1:15:04.800 --> 1:15:07.200
<v Speaker 1>the breast of the bank's security team. People in the

1:15:07.200 --> 1:15:09.320
<v Speaker 1>department were shocked that no one from the bank or

1:15:09.360 --> 1:15:12.839
<v Speaker 1>Palenteers said any real limits. They darkly joked that Kovichia

1:15:12.960 --> 1:15:15.559
<v Speaker 1>was listening to their calls, reading their emails, watching them

1:15:15.560 --> 1:15:19.040
<v Speaker 1>come and go. Some planted fake information in their communications

1:15:19.040 --> 1:15:21.519
<v Speaker 1>to see if Kavichia would mention it at meetings, which

1:15:21.520 --> 1:15:24.240
<v Speaker 1>he did. It all ended when a bank's when the

1:15:24.240 --> 1:15:27.160
<v Speaker 1>bank's senior executives learned that they too were being watched,

1:15:27.320 --> 1:15:29.920
<v Speaker 1>and what began as a promising marriage of masters of

1:15:29.960 --> 1:15:35.240
<v Speaker 1>big data and global finance descended into a spying scandal. Nice,

1:15:35.439 --> 1:15:42.160
<v Speaker 1>very funny, extremely funny. Oh my god, no, no, no,

1:15:42.240 --> 1:15:45.479
<v Speaker 1>and just like the most predictable thing that could have happened, right,

1:15:45.560 --> 1:15:47.880
<v Speaker 1>this is what happens. Every time you give these guys

1:15:47.920 --> 1:15:52.000
<v Speaker 1>this toy. Kavichia gets fired. But the promise of pallenty

1:15:52.120 --> 1:15:55.800
<v Speaker 1>remain undimmed, even though there is tremendous debate app to

1:15:55.800 --> 1:15:57.680
<v Speaker 1>the present day as to whether or not much of

1:15:57.720 --> 1:16:00.160
<v Speaker 1>what they do works. This is less the case now

1:16:00.200 --> 1:16:01.760
<v Speaker 1>that they're doing like we'll talk about this some in

1:16:01.760 --> 1:16:04.599
<v Speaker 1>the last episode, like when it comes to providing targeting

1:16:04.640 --> 1:16:07.360
<v Speaker 1>solutions based on data. I mean, there's the jury is

1:16:07.400 --> 1:16:09.519
<v Speaker 1>still out on how well that's working in like Ukraine,

1:16:09.640 --> 1:16:11.920
<v Speaker 1>But certainly in this period there's a big debate as

1:16:12.000 --> 1:16:15.240
<v Speaker 1>any of the shit really work. Right, Pallenteer's going to

1:16:15.320 --> 1:16:19.280
<v Speaker 1>take credit for the bin Laden assassination, very unlikely they

1:16:19.280 --> 1:16:21.840
<v Speaker 1>had anything to do with it, but they do kind of.

1:16:22.080 --> 1:16:26.400
<v Speaker 1>They take like oblique credit for it, and the software

1:16:26.439 --> 1:16:29.519
<v Speaker 1>is swiftly adopted by police stations and cities like New York,

1:16:29.640 --> 1:16:34.080
<v Speaker 1>Chicago and La Palateer software was often used allegedly to

1:16:34.120 --> 1:16:37.280
<v Speaker 1>single out innocent individuals because the connections in their lives

1:16:37.280 --> 1:16:40.960
<v Speaker 1>look suspicious to the algorithm. And here's Bloomberg again. The

1:16:41.000 --> 1:16:44.640
<v Speaker 1>platform is supplemented with what sociologist Sarah Brain calls the

1:16:44.680 --> 1:16:47.439
<v Speaker 1>secondary surveillance network, the web of who is related to,

1:16:47.479 --> 1:16:50.160
<v Speaker 1>who friends with or sleeping with whom. One woman in

1:16:50.200 --> 1:16:52.639
<v Speaker 1>the system for example, who wasn't suspected of committing any

1:16:52.640 --> 1:16:55.400
<v Speaker 1>crime was identified as having multiple boyfriends within the same

1:16:55.439 --> 1:16:57.960
<v Speaker 1>network of associates, says Brain, who spent two and a

1:16:58.000 --> 1:17:00.479
<v Speaker 1>half years embedded with the LAPD while we searching her

1:17:00.479 --> 1:17:03.840
<v Speaker 1>dissertation on big data policing at Princeton University and who's

1:17:03.880 --> 1:17:06.719
<v Speaker 1>now an associate professor at the University of Texas at Austin.

1:17:07.160 --> 1:17:09.200
<v Speaker 1>Anybody who logs into the system can see all these

1:17:09.200 --> 1:17:12.600
<v Speaker 1>intimate ties, she says, to widen the scope of possible connections,

1:17:12.600 --> 1:17:15.800
<v Speaker 1>she says, the LAPD has also explored purchasing private data,

1:17:15.880 --> 1:17:19.439
<v Speaker 1>including social media for closure and toll road information, camera

1:17:19.479 --> 1:17:22.639
<v Speaker 1>feeds from hospitals, parking lots and universities, and delivery information

1:17:22.680 --> 1:17:28.880
<v Speaker 1>from Papa John's International and Pizza Hut LLC. Now this

1:17:29.000 --> 1:17:34.920
<v Speaker 1>is used. Yeah, no I no, I do think that

1:17:34.960 --> 1:17:37.360
<v Speaker 1>the government should have access to our Papa John's records,

1:17:37.360 --> 1:17:39.960
<v Speaker 1>but mainly to make sure like, hey man, you've ordered

1:17:40.000 --> 1:17:45.439
<v Speaker 1>fourteen extra large pizzas this month? Okay, do you like

1:17:45.520 --> 1:17:47.360
<v Speaker 1>a hug? Can we should send a guy by your

1:17:47.360 --> 1:17:48.280
<v Speaker 1>house to give you a hug?

1:17:48.720 --> 1:17:51.880
<v Speaker 2>The proper order of Papa John's orders is zero zero

1:17:52.960 --> 1:17:54.519
<v Speaker 2>Domino's orders is zero.

1:17:54.720 --> 1:17:56.160
<v Speaker 1>Yeah, pizza hut Man, Come on.

1:17:56.840 --> 1:18:00.000
<v Speaker 2>Noiza, a proper number of orders is zero.

1:18:00.320 --> 1:18:02.920
<v Speaker 1>No. I like a good stuff crust. I like it

1:18:02.960 --> 1:18:07.439
<v Speaker 1>good stuff crust. Oh yeah, I love a big pizza

1:18:07.520 --> 1:18:08.599
<v Speaker 1>hut pizza. You know what?

1:18:08.680 --> 1:18:11.320
<v Speaker 3>You know what's good though, is those those Shack Papa

1:18:11.360 --> 1:18:12.360
<v Speaker 3>John's commercials to.

1:18:12.400 --> 1:18:14.120
<v Speaker 2>Get me everything.

1:18:14.360 --> 1:18:16.720
<v Speaker 1>Wow, No, you can't get me. You can't get me

1:18:16.760 --> 1:18:18.519
<v Speaker 1>into a Papa John. You know what they don't get

1:18:18.520 --> 1:18:18.920
<v Speaker 1>me to do?

1:18:19.439 --> 1:18:21.200
<v Speaker 3>Still eat Papa John's.

1:18:21.520 --> 1:18:24.360
<v Speaker 1>No, No, I would eat shack before I eat a

1:18:24.400 --> 1:18:32.120
<v Speaker 1>Papa John's. Wow, he's gotta have marbling, you know. Yeah.

1:18:32.240 --> 1:18:34.879
<v Speaker 1>I've always endorsed cannibalism and very pro cannabally.

1:18:34.880 --> 1:18:36.720
<v Speaker 3>It's one of those freaks that said they wanted to

1:18:36.760 --> 1:18:37.560
<v Speaker 3>eat Moodang.

1:18:38.400 --> 1:18:41.200
<v Speaker 1>I don't know who that is, Sophie. Well, but speaking

1:18:41.200 --> 1:18:43.720
<v Speaker 1>of eating people, let's talk about the tragic case of

1:18:43.800 --> 1:18:47.760
<v Speaker 1>Manuel Rios. He doesn't get eaten, I hope not. H

1:18:48.040 --> 1:18:50.040
<v Speaker 1>Manuel is a guy who grew up in East la

1:18:50.200 --> 1:18:52.320
<v Speaker 1>and had a lot of friends who joined a local

1:18:52.400 --> 1:18:55.960
<v Speaker 1>gang east Side eighteen. In twenty sixteen, he was seated

1:18:55.960 --> 1:18:58.120
<v Speaker 1>in a parked car with a friend who'd been jumped

1:18:58.160 --> 1:19:00.920
<v Speaker 1>into the gang. When police rolled up, his friend ran,

1:19:01.040 --> 1:19:04.000
<v Speaker 1>but Rios, who had not been breaking any laws, didn't run.

1:19:04.040 --> 1:19:05.519
<v Speaker 1>He was like, why why the fuck would I run?

1:19:05.560 --> 1:19:07.599
<v Speaker 1>Like my buddy's in a gang, Like, of course he's

1:19:07.600 --> 1:19:10.639
<v Speaker 1>going to flee. I'm not doing anything wrong. But because

1:19:10.960 --> 1:19:13.800
<v Speaker 1>you know, cops be how they are, he gets added

1:19:13.840 --> 1:19:17.840
<v Speaker 1>to the LAPD's gang database right and Pallenteers software because

1:19:17.840 --> 1:19:19.800
<v Speaker 1>of how many other gang dudes that he's just kind

1:19:19.800 --> 1:19:23.160
<v Speaker 1>of socially knows, because of where he lives, he gets

1:19:23.280 --> 1:19:25.920
<v Speaker 1>identified as a high priority target and he starts getting

1:19:26.000 --> 1:19:30.400
<v Speaker 1>stopped constantly by the cops. Quote the police on autopilot

1:19:30.400 --> 1:19:33.880
<v Speaker 1>with Palenteer are driving Rios towards his gang friends, not

1:19:34.000 --> 1:19:37.120
<v Speaker 1>away from them. Worries Maria Saba, a neighbor and community

1:19:37.200 --> 1:19:40.200
<v Speaker 1>organizer who helped him get off meth. When whole communities

1:19:40.240 --> 1:19:43.440
<v Speaker 1>like East La are algorithmically scraped for pre crime suspects,

1:19:43.560 --> 1:19:46.840
<v Speaker 1>data is destiny, says Saba. These are systemic processes, and

1:19:46.880 --> 1:19:49.840
<v Speaker 1>when people are constantly harassed in a gang context, it

1:19:49.880 --> 1:19:52.880
<v Speaker 1>pushes them to join the internalized being told they're bad,

1:19:53.840 --> 1:19:55.800
<v Speaker 1>and that's kind of the you know, one of the

1:19:56.080 --> 1:19:58.160
<v Speaker 1>we will talk a lot more about Pollentteer, even in

1:19:58.200 --> 1:20:00.280
<v Speaker 1>part four. But that's like, one of the really dark

1:20:00.320 --> 1:20:03.639
<v Speaker 1>things about this is that it's masquerading as like this

1:20:03.800 --> 1:20:06.960
<v Speaker 1>genius predictive, but all it's really doing is like, oh,

1:20:07.000 --> 1:20:08.840
<v Speaker 1>you live in a poor neighborhood, a lot of your

1:20:08.840 --> 1:20:10.920
<v Speaker 1>friends grow up to be in gangs. Cops should probably

1:20:10.920 --> 1:20:14.320
<v Speaker 1>fuck with you constantly, you know, fuck with this guy constantly, right,

1:20:14.479 --> 1:20:16.599
<v Speaker 1>And that's all it is. It's stopping frisks that you

1:20:16.720 --> 1:20:17.800
<v Speaker 1>threw an algorithm over.

1:20:18.360 --> 1:20:20.160
<v Speaker 2>Yeah, Or it almost reminds me of like, you know

1:20:20.200 --> 1:20:22.720
<v Speaker 2>how like in the shitty day, shitty early days of

1:20:22.800 --> 1:20:28.040
<v Speaker 2>like a map quest and Google Maps, where it like

1:20:28.560 --> 1:20:31.360
<v Speaker 2>you'd get some drivers that would just follow the directions

1:20:31.600 --> 1:20:34.120
<v Speaker 2>no matter how unhinged.

1:20:35.840 --> 1:20:38.200
<v Speaker 1>A river yeah yeah, yeah, yeah.

1:20:37.800 --> 1:20:41.519
<v Speaker 2>Yeah, and it's like guys, use your.

1:20:41.479 --> 1:20:44.320
<v Speaker 1>Eyes, homie, what's up, what's up? And you know this?

1:20:45.080 --> 1:20:49.360
<v Speaker 2>Yeah, And instead it'd be like they just follow. They

1:20:49.479 --> 1:20:50.520
<v Speaker 2>blame the algorithm.

1:20:50.720 --> 1:20:50.960
<v Speaker 1>Yeah.

1:20:50.960 --> 1:20:52.599
<v Speaker 2>Now, if it's just going to cost you an extra

1:20:52.600 --> 1:20:54.800
<v Speaker 2>ten bucks on an uber, that's one thing. But when

1:20:54.800 --> 1:20:58.080
<v Speaker 2>it costs you know, some poor kid getting harassed over

1:20:58.120 --> 1:21:01.920
<v Speaker 2>and over again, that's something totally different. And that mortally happened.

1:21:01.920 --> 1:21:03.479
<v Speaker 1>Yeah, yeah, it sure did.

1:21:04.840 --> 1:21:04.920
<v Speaker 2>So.

1:21:04.960 --> 1:21:08.160
<v Speaker 1>In twenty eleven, Peter did an interview with Bloomberg. By

1:21:08.160 --> 1:21:11.040
<v Speaker 1>this point, civil libertarians, which had been previously kind of

1:21:11.080 --> 1:21:15.040
<v Speaker 1>Peter's constituency, had started blowing the horn over Pallanteer. Peter

1:21:15.080 --> 1:21:17.080
<v Speaker 1>felt a need to make the case to his fellow

1:21:17.160 --> 1:21:20.439
<v Speaker 1>libertarians on the need to embrace being spied on. He

1:21:20.640 --> 1:21:23.240
<v Speaker 1>argued that data mining was less harmful than the quote

1:21:23.240 --> 1:21:26.920
<v Speaker 1>crazy abuses entraconian policies the Bush administration had pushed after

1:21:27.000 --> 1:21:28.880
<v Speaker 1>nine to eleven, And I would desperately love to hear

1:21:29.000 --> 1:21:32.280
<v Speaker 1>which of those policies didn't you agree with, Peter, because

1:21:32.280 --> 1:21:34.200
<v Speaker 1>it seems like you think they didn't go far enough, right,

1:21:34.200 --> 1:21:36.439
<v Speaker 1>But he's like, look, if we want to avoid a

1:21:36.479 --> 1:21:39.800
<v Speaker 1>police state, obviously you have to let me, Peter Tiel,

1:21:39.880 --> 1:21:42.320
<v Speaker 1>build a surveillance state. That's all that can stop us

1:21:42.320 --> 1:21:45.160
<v Speaker 1>from having an evil police state. Right, what a libertarian.

1:21:45.439 --> 1:21:47.400
<v Speaker 1>That's why I'm selling this shit to the CIA and

1:21:47.439 --> 1:21:51.040
<v Speaker 1>to spy on us. Keeps liberty libertate.

1:21:51.439 --> 1:21:54.280
<v Speaker 2>Yeah, you know, I hadn't thought of this before, but

1:21:54.320 --> 1:21:57.360
<v Speaker 2>I remember around this time libertarians in my life are

1:21:57.560 --> 1:22:01.240
<v Speaker 2>self professed libertarians in my life. Yeah, from like really

1:22:01.240 --> 1:22:03.559
<v Speaker 2>caring about this stuff to throwing up their hands and

1:22:03.560 --> 1:22:04.599
<v Speaker 2>saying what privacy is did?

1:22:05.000 --> 1:22:08.519
<v Speaker 1>Yeah, nothing you can do. It's the nine to eleven effect.

1:22:08.600 --> 1:22:11.400
<v Speaker 1>It's so much because a big part of this is

1:22:11.479 --> 1:22:14.759
<v Speaker 1>like you have this kind of same thing that happens

1:22:14.760 --> 1:22:16.639
<v Speaker 1>where you've got all these guys who in the early

1:22:16.680 --> 1:22:20.400
<v Speaker 1>two thousand's kind of the early part of the Bush

1:22:20.439 --> 1:22:23.519
<v Speaker 1>era the late nineties had been like atheist activists who

1:22:23.560 --> 1:22:26.559
<v Speaker 1>were like super anti the religious right, and then after

1:22:26.640 --> 1:22:29.599
<v Speaker 1>nine to eleven they all get really racist against Muslims,

1:22:29.640 --> 1:22:33.400
<v Speaker 1>and it pushes them towards conservatives and it's like, oh, guy,

1:22:33.439 --> 1:22:36.320
<v Speaker 1>so you guys didn't have any principles ever, right, Okay,

1:22:36.360 --> 1:22:37.839
<v Speaker 1>I get it, I get it. Yeah.

1:22:37.840 --> 1:22:40.240
<v Speaker 2>And so and on the data side, it's like, oh, yeah,

1:22:40.240 --> 1:22:43.360
<v Speaker 2>we were really for civil liberties, but now that privacy

1:22:43.439 --> 1:22:47.360
<v Speaker 2>is dead, Yeah, you might as well have the Lotian

1:22:47.640 --> 1:22:50.639
<v Speaker 2>Yeah yeah, yeah, what's the difference. Just let it happen,

1:22:50.680 --> 1:22:53.120
<v Speaker 2>or if there's someone's going to spy on you, let it.

1:22:53.080 --> 1:22:57.920
<v Speaker 1>Be Peter Teal. Yeah, here's one of us at least yep,

1:22:58.600 --> 1:23:03.160
<v Speaker 1>speaking of Peter Till Noah, you got anything to plug?

1:23:05.720 --> 1:23:07.760
<v Speaker 2>Yes, I have my new I don't know I have

1:23:07.760 --> 1:23:10.080
<v Speaker 2>some I tried to come up with the lame chok

1:23:10.200 --> 1:23:11.679
<v Speaker 2>there on the front. No I have nothing a plug.

1:23:11.800 --> 1:23:14.439
<v Speaker 2>But you can find me at Noah Shackman. That's n

1:23:14.520 --> 1:23:17.519
<v Speaker 2>O A H S H A C H T M

1:23:17.560 --> 1:23:22.600
<v Speaker 2>A N yeah at most social platforms.

1:23:22.600 --> 1:23:29.400
<v Speaker 1>Well check out Noah and you know figure out now.

1:23:29.479 --> 1:23:31.639
<v Speaker 1>I'm not gonna tell people to do anything illegal.

1:23:33.000 --> 1:23:36.120
<v Speaker 2>Crazy board, Yeah, make it crazy.

1:23:36.160 --> 1:23:38.640
<v Speaker 1>Go make a crazy board. Go make a crazy board

1:23:38.400 --> 1:23:39.479
<v Speaker 1>as a center.

1:23:39.640 --> 1:23:45.120
<v Speaker 4>May also someone suggests instead touch grass and peta dog.

1:23:45.240 --> 1:23:48.800
<v Speaker 1>And touch grass, peta dog, make a crazy board on

1:23:48.840 --> 1:23:52.040
<v Speaker 1>your wall. Stop hanging out with your friends. Cut off

1:23:52.080 --> 1:23:54.719
<v Speaker 1>all contact with your family. Many of them live alone

1:23:54.760 --> 1:23:57.760
<v Speaker 1>in a dark room. Just try to be more like

1:23:57.840 --> 1:24:02.120
<v Speaker 1>Matthew McConaughey and True Detective Right is much like matt

1:24:02.439 --> 1:24:05.040
<v Speaker 1>thank your daughter for dying and sparing you the sin

1:24:05.120 --> 1:24:07.840
<v Speaker 1>of being a father. Do all that good good Matthew

1:24:07.920 --> 1:24:10.400
<v Speaker 1>McConaughey and True Detective stuff. Have fun with it, but

1:24:10.520 --> 1:24:13.519
<v Speaker 1>don't have fun with you. Do not eat, do not

1:24:13.560 --> 1:24:19.680
<v Speaker 1>eat anything but amphetamines. Cigarettes, just just them up. Make

1:24:19.760 --> 1:24:22.679
<v Speaker 1>us make a cigarette shake every morning. Okay.

1:24:26.400 --> 1:24:29.120
<v Speaker 4>Behind the Bastards is a production of cool Zone Media.

1:24:29.479 --> 1:24:32.080
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1:24:32.160 --> 1:24:36.120
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1:24:36.200 --> 1:24:38.720
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1:24:38.960 --> 1:24:42.320
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