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Speaker 1: Hey, guys, ready or not, twenty twenty four is here

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Speaker 1: and we here at Breaking Points, are already thinking of

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Speaker 1: ways we can up our game for this critical election.

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Speaker 1: We rely on our premium subs to expand coverage, upgrade

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Speaker 1: the studio ad staff give you, guys, the best independent

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Speaker 1: coverage that is possible. If you like what we're all about,

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Speaker 1: it means the absolute world to have your support. What

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Speaker 1: are you waiting for? Become a premium subscriber today at

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Speaker 1: Breakingpoints dot com. Good morning, everybody, Happy Tuesday. We have

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Speaker 1: an amazing show for everybody today. What do we have, Brystal? Indeed,

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Speaker 1: we do lots of interesting things that we are looking

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Speaker 1: at this morning. We have new polling about what Americans

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Speaker 1: say is the number one problem in the country. You

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Speaker 1: might be surprised it has changed recently. We also have

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Speaker 1: news about how Wall Street is positioning themselves for this

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Speaker 1: debt ceiling showdown. Long story short, they're feeling kind of

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Speaker 1: comfortable because they think they'll get paid even if veterans, seniors,

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Speaker 1: the poor, whatever do without. They think bondholders are going

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Speaker 1: to get theirs front of the line. So we'll talk

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Speaker 1: about all of that. We also have some kind of

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Speaker 1: interesting twenty twenty four news. First of all, Ronda Santis

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Speaker 1: assembling a team will take you inside of that. But

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Speaker 1: also some question marks around whether Kamala Harris is going

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Speaker 1: to be on the ticket with Joe Biden, so some

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Speaker 1: little inside dirt there. We also have a just shockingly

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Speaker 1: horrific story about the way that big Pharma gougeous consumers gouge'

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Speaker 1: is the US government. I mean, listen, none of this

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Speaker 1: is going to be surprising to you, but the scope

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Speaker 1: and scale of what we're going to detail for you

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Speaker 1: is truly horrifying. Also, some huge fallout in the used

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Speaker 1: car market. As you know, during the pandemic, used car

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Speaker 1: market was through the roof. I mean you could barely

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Speaker 1: get your hands on these things. Companies like Carvana just

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Speaker 1: took off, skyrocketed, taking in all this capital, making big acquisitions.

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Speaker 1: Well now, not to use a bad pun, the wheels

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Speaker 1: are coming off of the industry and some major potential

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Speaker 1: fallout there. Also, speaking of fallout, things not going so

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Speaker 1: well for our friends at CNN, some of the worst

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Speaker 1: ratings that they have had in history. The new shuffling

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Speaker 1: of the lineup doesn't seem to be working out for them.

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Speaker 1: And the new head of CNN, Chrislick, just gave a

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Speaker 1: new interview revealing some of the details of his plans

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Speaker 1: and how he thinks that things are ultimately going. But

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Speaker 1: let's go ahead and start with what is going on

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Speaker 1: with regard to the debt ceiling. Let's go and put

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Speaker 1: this first element up on the screen. So this is

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Speaker 1: the first part before we get to the debt ceiling.

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Speaker 1: How Americans are feeling about our country, about our government.

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Speaker 1: New pulling from Gallup asking citizens, what is the most

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Speaker 1: important problem in the US? Now? Up until recently was inflation.

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Speaker 1: Now it has switched mid concerns about that debt ceiling,

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Speaker 1: potentially fallout from the MESSI Kevin McCarthy leadership fight. Now

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Speaker 1: you have the government slash poor leadership as the number

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Speaker 1: one issue that voters cite as problems facing the US.

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Speaker 1: Inflation now comes in second, immigration now comes in third,

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Speaker 1: and economy in general coming in fourth. Now I do

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Speaker 1: kind of look at these things and I'm sort of like, well,

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Speaker 1: inflation the economy in general, Like you could kind of

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Speaker 1: put those two together and say, Okay, the economy overall

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Speaker 1: is still the number one problem. But I do think

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Speaker 1: it's significant that over just the past month, you've had

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Speaker 1: a significant uptick in the number of Americans saying that

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Speaker 1: the biggest problem facing the country is the government itself. Also,

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Speaker 1: by the way, in terms of how people are feeling

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Speaker 1: about the economy, you've got more than four and five

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Speaker 1: US adults rating economic conditions in the country as only

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Speaker 1: fair or poor. This is especially relevant given the fact

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Speaker 1: that the Biden team thinks they're going to run on

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Speaker 1: the strong economy, when four and five adults say the

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Speaker 1: economy is not strong at all, it's fair or poor.

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Speaker 1: So that's important to note. You also still have seventy

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Speaker 1: two percent of Americans saying the economy is getting worse,

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Speaker 1: only twenty two percent say that it is improving, four

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Speaker 1: percent say that it is staying the same. And back

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Speaker 1: to what Americans think is the biggest problem facing the country.

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Speaker 1: You know there is some unity between the parties, at

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Speaker 1: least in the top issue. Let's go and put this

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Speaker 1: up on the screen. So government ranks as the top

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Speaker 1: problem for both Democrats and Republicans, and they throw in

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Speaker 1: their Republican leaning independence, Democratic leading independence. So for Republicans

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Speaker 1: it's twenty four percent site government is the biggest problem

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Speaker 1: Democrats not that far behind though, at eighteen percent. From

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Speaker 1: there the list diverges someonet Inflation is the number two

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Speaker 1: issue for both Republicans and Democrats. For the Republican side

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Speaker 1: it is tied with immigration. Then from there you have

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Speaker 1: some divergence. You have economy in general. Again, that's one

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Speaker 1: is shared, but Democrats more concerned than Republicans on unifying

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Speaker 1: the country and race relations. But pretty remarkable when you

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Speaker 1: have both Democrats and Republicans saying the government is the

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Speaker 1: biggest problem. Now they probably mean very different things when

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Speaker 1: they say that. It is a sort of like very

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Speaker 1: general term. You could be criticizing any number of aspects

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Speaker 1: of the government, but I think in general, the sense

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Speaker 1: that you know, we're headed to this showdown, things are messy,

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Speaker 1: they're not delivering for me, They're not able to get

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Speaker 1: their act together and really deliver for the American people

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Speaker 1: is shaping this view. What I found most interesting about

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Speaker 1: it was the percent increase so in remember to December,

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Speaker 1: during the mid terms and almost in the immediate aftermath,

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Speaker 1: it was people who were saying that the government was

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Speaker 1: at fifteen percent, saying that it was their top most

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Speaker 1: important problem, and actually they had the economy in general

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Speaker 1: and inflation above it. But then you have the percent

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Speaker 1: change so dramatically from fifteen to twenty one percent, just

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Speaker 1: dramatically coming all the way up to the top. And

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Speaker 1: like you said, I'm not so sure how exactly you

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Speaker 1: can rate that. You could look at it maybe from

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Speaker 1: a Democrat's perspective, You're like, well, the government's now the

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Speaker 1: problem because the Republicans took over the House. Maybe that's it.

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Speaker 1: They look at the speakership fight, same with the Republican Party.

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Speaker 1: They could say, well, now the government is especially more

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Speaker 1: of the problem because we had an election and the

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Speaker 1: Democrats still controlled the Senate, so now we have a

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Speaker 1: pure gridlock, and that means not the thing is going

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Speaker 1: to happen. I think it probably goes a level deeper

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Speaker 1: than that on a bipartisan level. And it's been two years.

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Speaker 1: I got the news yesterday that Biden's going to end

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Speaker 1: the pandemic in May. I'm like, okay, well, I guess

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Speaker 1: it didn't even know needed to be ended, but legally

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Speaker 1: that stuff matters. I think there's just a general sense

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Speaker 1: of malaise of the last three years. It's just been horrible,

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Speaker 1: and whenever you have bad leadership two years in a row, bipartisan,

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Speaker 1: different houses, and all that changing, and nothing actually does

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Speaker 1: change whenever. It's probably called for more than ever in

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Speaker 1: modern history, at least since what nine to eleven, And

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Speaker 1: then you look at it and nothing has really gotten done,

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Speaker 1: and we can't really agree on anything. The partisanship seems

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Speaker 1: worse than ever. Intractable problems seem just as intractable. You

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Speaker 1: have no choice but to say it is the government.

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Speaker 1: And I don't know what to do with that information.

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Speaker 1: I think it's actually very sad. I think it is

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Speaker 1: too actually, as someone who believes in, you know, an

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Speaker 1: ideal functioning government as an important force in American life

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Speaker 1: and in global life as well, you know, as I

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Speaker 1: think about situating it in this exact context, I do

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Speaker 1: think there's something about the specifics of the moment where,

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Speaker 1: you know, number one, there there were some things that

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Speaker 1: did get done when you had democratic control. You had

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Speaker 1: the Chips Act, you had you know, the burn Pit legislation,

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Speaker 1: you had the Inflation Reduction Act. You did have a

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Speaker 1: few pee you had the bipartisan infrastructure deal, you did

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Speaker 1: had a very limited bipartisan gun deal. Even so, you

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Speaker 1: did have some limited things happening. Now there's an expectation

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Speaker 1: before the next presidential election, nothing is going to happen

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Speaker 1: except for, you know, a potentially catastrophic default on the debt,

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Speaker 1: a lot of partisan you know, showdowns and haggling, you know,

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Speaker 1: these sort of like which Hunt type committees to look

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Speaker 1: at Hunter Biden, but never to examine anything that Trump

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Speaker 1: or his people ever did. And so I think there

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Speaker 1: is that sense setting in and I think there's a

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Speaker 1: real warning in here for both Republicans and for Democrats.

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Speaker 1: I mean, number one, listen the politics of how this

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Speaker 1: is going to work with some sort of debt sealing,

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Speaker 1: hostage taking situation, which it seems like we are inevitably

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Speaker 1: headed towards, because that is the deal Kevin McCarthy made

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Speaker 1: with the holdowns and his caucus people are not going

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Speaker 1: to be impressed with you taking the country to the

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Speaker 1: edge and potentially over So I think there is a

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Speaker 1: micro timeline, major warning for Republicans in the direction that

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Speaker 1: they're headed in. But you know, when you have these

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Speaker 1: increasingly negative feelings about the government overall, and this is

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Speaker 1: what we've seen over the past forty years, you know,

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Speaker 1: that is a really bad situation for Democrats who tend

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Speaker 1: to be more the party of government to be in.

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Speaker 1: So in this micro battle it might work out poorly

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Speaker 1: for Republicans, but overall you lose the specifics of who

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Speaker 1: did what and who was to blame over time, and

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Speaker 1: the general sense that is left is just the government fails,

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Speaker 1: the govern doesn't work, the government cannot work. And again,

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Speaker 1: I think that's a really damaging position for Democrats if

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Speaker 1: you're looking at it from a partisan perspective. But I

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Speaker 1: also think for the possibility of moving the nation forward

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Speaker 1: over the long term because listen, as much as like

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Speaker 1: we complain about the government here and the corruption and

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Speaker 1: the money in politics and the way that they sell

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Speaker 1: out the interests of citizens all the time, there is

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Speaker 1: no other body that can check the gigantic influence of

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Speaker 1: corporate dominance in American society. There is no other institution

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Speaker 1: that can make sure you know, food is safe and

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Speaker 1: water is clean and the basics of what citizens should

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Speaker 1: expect out of life are ultimately meant. So I look

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Speaker 1: at it level of like small D democratic input. It's like, well,

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Speaker 1: what impact can we have on exon CEO and gas prices? Actually? None?

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Speaker 1: All right, what do you have when it comes to

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Speaker 1: the strategy, patroleum reserve and our foreign relations with Russia

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Speaker 1: a lot. And as we have found out over the

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Speaker 1: last year or so, well, that is going to have

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Speaker 1: a very major impact on our consumer is whether we

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Speaker 1: like it or not. So you can hate the government,

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Speaker 1: but the government is still going to think quite a

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Speaker 1: lot about you. So I would always behoove people to

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Speaker 1: think about the government. Yes, indeed, all right, so let's

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Speaker 1: talk a little bit more about the debt seiling. This

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Speaker 1: is a really really important piece because ultimately, you know,

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Speaker 1: in these various showdowns, the thing that really forces these

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Speaker 1: politicians to the table is when the donor sit set

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Speaker 1: gets unhappy, and in particular, when Wall Street becomes unhappy.

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Speaker 1: So one of the things that could have potentially saved

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Speaker 1: us from a debt seiling showdown and ultimately going over

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Speaker 1: the edge and having some sort of default is if

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Speaker 1: Wall Street is putting a lot of pressure on all

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Speaker 1: of the politicians that they have bought, saying this is

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Speaker 1: going to be bad for us, this is going to

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Speaker 1: be bad for the economy. Well, there's quite a bit

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Speaker 1: of new reporting that says, actually Wall Street is kind

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Speaker 1: of chilling. They're not worried about this at all. Why

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Speaker 1: Because they think even if there is a default that they,

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Speaker 1: as bondholders, will be in line to get their payments first.

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Speaker 1: So they're looking at the state of affairs and going,

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Speaker 1: this has no skin off my back. I'm still going

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Speaker 1: to get mine, even as you who knows what's going

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Speaker 1: to happen with Social Security payments, payments to veterans, you know,

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Speaker 1: basic welfare, children's health insurance, all of these critical programs

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Speaker 1: that ordinary people rely on, Well those are in jeopardy.

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Speaker 1: They don't care about that. Go ahead and put this

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Speaker 1: up on the screen from Politico. Here's what they say.

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Speaker 1: They say Wall streeters break with Biden on the debt limit.

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Speaker 1: In this report, they say that these Wall Street bankers

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Speaker 1: are quote unquote banking on the Treasury Department's ability to

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Speaker 1: prioritize payments so that bondholders keep getting paid with the

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Speaker 1: limited cash available. Such a move would hypothetically potentially avoid

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Speaker 1: a global market crash, given that treasuries are the bedrock

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Speaker 1: of the international financial system. The global Chair of Research

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Speaker 1: at Barclay's says, most investors who follow US closely are

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Speaker 1: very aware the US will not default on its bond.

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Speaker 1: So again translation we're going to get paid, so we're

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Speaker 1: not that worried about it. Now, there's a lot of

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Speaker 1: pushback on this idea that you can just go ahead

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Speaker 1: and pay the bondholders and not worry about the other

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Speaker 1: stuff and it won't technically be a default. Treasury secretary.

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Speaker 1: Former Treasury Secretary Jack Luke told this political reporter that

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Speaker 1: this notion is intellectually bankrupt because at the minute that

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Speaker 1: you have the US government not meaning its obligations, whether

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Speaker 1: it's to bondholders or to anyone else, you are technically

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Speaker 1: in default. And you're also in uncharted territory in terms

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Speaker 1: of what the financial fallout is ultimately going on. So

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Speaker 1: what I've heard is is that this is a real

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Speaker 1: scenario that would happen with the debt sealing. And the

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Speaker 1: reason why is even if Congress does not appropriate funding

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Speaker 1: to the government, the government has all kites of revenue sources.

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Speaker 1: So for example, let's say this is all going down

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Speaker 1: in the summer, well, guess what, they just banked a

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Speaker 1: ton of tax revenue during tax season. Also, people who

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Speaker 1: pay on a quarterly basis, so they can use that

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Speaker 1: revenue to pay some obligation, So they actually do have

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Speaker 1: some discretionary authority because that's not congressionally appropriated money. That's

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Speaker 1: money that's coming in via taxes, now what. And that's

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Speaker 1: why the Wall streeters are feeling very comfortable because they

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Speaker 1: think that what Treasury Department will do is in a

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Speaker 1: bid to prop up at least some of the global

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Speaker 1: financial system, they're going to hit the bondholders first and

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Speaker 1: not pay out you know, VA benefits or oh, I

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Speaker 1: mean the list goes on forever, like pensions in terms

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Speaker 1: of health services, medicare, like many of these things which

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Speaker 1: are or discretionary spending within the budget, where Treasury Department

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Speaker 1: is actually much wonkier on what they can and can't

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Speaker 1: do as opposed to these independent agencies which happen to

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Speaker 1: benefit the disproportionately rich in the Wall streets, Yes, and

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Speaker 1: Wall Street. And this is something we've been talking about

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Speaker 1: since the beginning of you know, during Kevin McCarthy showdown.

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Speaker 1: In all of this, this was one of the things

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Speaker 1: that Republicans were talking about, is we're going to come

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Speaker 1: up with our plan of how we're going to prioritize

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Speaker 1: payments so if there's not enough money coming in and

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Speaker 1: we're going to come up with a plan of how

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Speaker 1: to prioritize all of the it's like ten million pay

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Speaker 1: payments that have to go out from the federal government.

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Speaker 1: We're going to decide who are the winners and losers

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Speaker 1: in this ultimate battle to come. Now, the last time

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Speaker 1: we faced a debt ceiling showed on it was like

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Speaker 1: twenty eleven twenty twelve. They came up with some theoretical Okay,

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Speaker 1: if we hit the wall, if we go over the ledge,

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Speaker 1: what is this going to look like? How is this

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Speaker 1: all going to work out? So they have kind of

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Speaker 1: been through this intellectual exercise before, but it has never

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Speaker 1: actually come to implementing this plan. And you know, there's

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Speaker 1: a big difference between theoretically having this list of ten

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Speaker 1: million payments and how it's all going to work and

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Speaker 1: actually coordinating that and making it happen. Not to mention, Okay,

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Speaker 1: even if they're able to pull off that incredibly technically

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Speaker 1: complex feet again, you don't know how the global financial

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Speaker 1: system is going to react to the fact that the

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Speaker 1: US government is not meaning all of its obligations, even

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Speaker 1: if it is meaning the obligations of the bondholders. It

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Speaker 1: is disgusting and immoral that the economic royalists would get

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Speaker 1: paid first, while you have like you know, veterans who

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Speaker 1: are not getting their benefits or old people who are

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Speaker 1: starving because they're not getting their Social Security checks on time,

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Speaker 1: et cetera. So it is still a disastrous situation, It's

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Speaker 1: just not one that Wall Street is particularly concerned about.

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Speaker 1: New York Times has similar reporting. Hadn't put this up

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Speaker 1: on the screen, They say Wall Street is counting on

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Speaker 1: a debt limit trick that could entail trouble. If the

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Speaker 1: debt limit is breached, investors expect Chargery to put bond

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Speaker 1: payments first. It would be politically and practically fraught. One

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Speaker 1: former chief economist to Republican Center Rob Portman, who went

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Speaker 1: through this exercise back the last time that we were

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Speaker 1: talking about these sort of dead limit fights, said, prioritization

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Speaker 1: is really default by another name. It is not defaulting

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Speaker 1: on the government's debt, but it is defaulting on its obligation.

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Speaker 1: But another analyst at Bank of America says that prioritization

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Speaker 1: is the lynchpin of calmness. Markets will come to expect

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Speaker 1: a prioritization plan much more than they did back in

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Speaker 1: twenty eleven. And so you really have a mix of

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Speaker 1: views on this, on whether it's feasible at all, on

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Speaker 1: whether it will actually calm global markets, But it seems

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Speaker 1: as of now most of Wall Street is kind of

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Speaker 1: relaxed about this prospect, which, again, the reason that matters

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Speaker 1: is because these are people who, like it or not,

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Speaker 1: have disproportionate influence in Washington, and so if they aren't

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Speaker 1: pushing people to find a resolution to this and make

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Speaker 1: sure that we don't ultimately default, that is another chip

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Speaker 1: in favor of y'all. We may actually go over the

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Speaker 1: ledge here and it could be a gigantic mess and

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Speaker 1: a disaster. Yeah, it's important for that. We all know.

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Speaker 1: We're talking about this with yesterday with Jeff Stein. It's like, oh,

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Speaker 1: this could all seem like doom and gloom. Like, listen,

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Speaker 1: we're close. You never know how close we're going to get,

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Speaker 1: and we bear you know. I'm actually going back and

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Speaker 1: reading Bob Woodward wrote a pretty good book about the

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Speaker 1: twenty eleven debt crisis. I'm trying to become as familiar

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Speaker 1: I am with the exact decision points. We came pretty

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Speaker 1: damn close to a default the last time around. We

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Speaker 1: actually had some degrade in our debt downgrading in our

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Speaker 1: debt that had some pretty big impacts at the time

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Speaker 1: on financial markets. One of the only reasons that we

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Speaker 1: were really able to rescue ourselves out of it is

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Speaker 1: that we were in a zero interest rate environment, so

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Speaker 1: that whenever we came out, you know things, we had

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Speaker 1: a bit of a malaise on the way back up

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Speaker 1: in this quote unquote fake economic recovery that Obama touted

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Speaker 1: in twenty twelve. Now, you know, we don't have the

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Speaker 1: same cushion that we had at that time, So, you know,

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Speaker 1: going off the edge, like you always point to Britain,

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Speaker 1: who the hell knows where you end up. You really

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Speaker 1: have no idea what the consequence is going to look like. Yes,

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Speaker 1: that's exactly right. And if you are someone who was

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Speaker 1: concerned about the debt and the interest payments that are

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Speaker 1: going out while having some sort of default and bondholders

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Speaker 1: demanding a premium, means those interest costs are going up

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Speaker 1: and you're actually going backwards now in terms of the

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Speaker 1: goals that you are at least pretending to uphold. There's

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Speaker 1: one other piece of this, which is you know, sort

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Speaker 1: of moving target and interesting, which is that Republicans have

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Speaker 1: decided they want to have this fight. They've decided they

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Speaker 1: want to have this showdown over the debt ceiling to

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Speaker 1: cut spending, even though you know, during the Trump administration

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Speaker 1: they didn't care, but now that it's a Democrat in

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Speaker 1: the White House, they do care. So the Dirntey secret

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Speaker 1: is they don't agree whatsoever on what they actually want

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Speaker 1: to cut. So CNN has a report they are apparently

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Speaker 1: working behind the scenes to try to hash out what

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Speaker 1: their demands would be to raise the debt limit. Do

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Speaker 1: we have this guy's a five that we can put

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Speaker 1: up on the screen from CNN, Here we go. New

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Speaker 1: Republicans weigh debt ceiling demands ahead of McCarthy Biden, meaning

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Speaker 1: group of hardliners met Fridays. They weigh options onying major

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Speaker 1: cuts to domestic a trim to defense, but don't want

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Speaker 1: to touch those security and medicare okay. Well, guess what, guys,

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Speaker 1: If you are going to cut as much as a

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Speaker 1: lot of these hardliners want you to cut, is very

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Speaker 1: difficult to do that without touching entitlements ultimately, I mean,

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Speaker 1: the math just really doesn't work out that well. Social

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Speaker 1: Security alone takes up about twenty one percent of the

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Speaker 1: federal government spent in the last fiscal year. Healthcare pro programs,

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Speaker 1: namely Medicare, Medicaid, Children's Health insurance program, and Affordable Care

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Speaker 1: Act subsidies account for about twenty five percent of the budget.

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Speaker 1: So already you're talking about about half of the budget

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Speaker 1: between healthcare, social security, and then the rest of the

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Speaker 1: budget goes to a range of discretionary domestic programs, including

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Speaker 1: thirteen percent for defense and national security. So you add

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Speaker 1: defense into the mix, and you're getting close to, like

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Speaker 1: you know, you're you're up over well over half of

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Speaker 1: the budget. And these are all items that many parts

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Speaker 1: of the Republican Caucus are saying, no, no, no no, we

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Speaker 1: don't want to touch any of that. Okay, well where

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Speaker 1: are the cuts that going to ultimately come from, So

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Speaker 1: we'll see if they're able to work that out. And

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Speaker 1: then the other there were two other pieces in this

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Speaker 1: CNN article that were really no whether they're me soccer.

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Speaker 1: First of all, I didn't realize there were a few

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Speaker 1: members of the Republican Caucus who were just saying they

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Speaker 1: will not raise the dead ceiling under any circumstance, just

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Speaker 1: totally no to any even if they get all the

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Speaker 1: cuts or whatever they want. No, we will not vote

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Speaker 1: to raise it, which to me seems utterly ridiculous and

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Speaker 1: insane to give you a sense of what mcarthy is

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Speaker 1: dealing with on that's side. And the other thing that

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Speaker 1: I thought was one of the dumbest things I've ever

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Speaker 1: seen in my life, the quote unquote problem Solver's Caucus.

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Speaker 1: This is like the bipartisan corporatist caucus that they were like,

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Speaker 1: you know, this is Gotttheimer and the salt tax is

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Speaker 1: that crew. They have a potential contingency plan. They're working

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Speaker 1: on a proposal that would, in part, try to set

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Speaker 1: a ratio for the allowable amount of US debt compared

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Speaker 1: to the country's GDP and develop a plan for budget

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Speaker 1: cuts if that level is breached. The group is consulting

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Speaker 1: outside experts to help draft the proposal. Now that might

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Speaker 1: sound reasonable in theory, However, think about the situation you're in.

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Speaker 1: If the GDP is going backwards, that means you're in

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Speaker 1: a recession. A recession is the time when you need

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Speaker 1: to prime the pump and spend a little more money

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Speaker 1: so that people can get the economy rolling again. Instead,

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Speaker 1: what this plan would require is that you cut spending,

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Speaker 1: likely thereby deepening the recession, likely thereby forcing even more

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Speaker 1: cuts to spending in a downward doom loop. That's what

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Speaker 1: these idiots are trying to put on the table for us.

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Speaker 1: So just really galaxy brain thinking all the way around. Yeah,

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Speaker 1: I mean overall, I just think that people aren't paying

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Speaker 1: as much attention because they're still a couple of months away.

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Speaker 1: But the initial shape of the fight is beginning to

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Speaker 1: take place in some of the negotiation arounds who gets paid, what,

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Speaker 1: what can realists be cut, etc. That's why we're spending

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Speaker 1: so much time, just because it could have a huge

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Speaker 1: impact on all of us really government services, I mean

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Speaker 1: a lot of things really could shut down. I've even

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Speaker 1: seen speculation the FAA itself, all flights could be grounded

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Speaker 1: if we went into a It's one of those completely

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Speaker 1: unprecedented areas and you can't even imagine the trillions of

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Speaker 1: dollars that it could wreak on the economy if we

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Speaker 1: do go over the line. Yeah, because people here like, oh,

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Speaker 1: discretionary spending, well, you could probably cut there, and then

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Speaker 1: you realize that that includes like the FAA budget, and

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Speaker 1: it means that airplanes don't fly or literally, you know,

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Speaker 1: I mean, there are no food inspections and now the

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Speaker 1: baby formulas tainted again or whatever. So it sounds in

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Speaker 1: theory like, oh, I'm sure we could cut here and there,

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Speaker 1: But in reality, some of these programs are incredibly crucial

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Speaker 1: to the functioning of American life that we don't even

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Speaker 1: really realize, not to mention the global financial fallout. So

431
00:22:09,760 --> 00:22:11,800
Speaker 1: last thing I'll say on this why we're covering it,

432
00:22:11,880 --> 00:22:15,640
Speaker 1: why it's important, why there's a real possibility no one

433
00:22:15,640 --> 00:22:17,680
Speaker 1: knows what percent that we end up in a sort

434
00:22:17,680 --> 00:22:21,960
Speaker 1: of catastrophic situation, is because it really seems like none

435
00:22:21,960 --> 00:22:25,160
Speaker 1: of the political actors here have an incentive to change

436
00:22:25,200 --> 00:22:28,800
Speaker 1: their initial negotiating position. If you're Kevin McCarthy and you

437
00:22:28,880 --> 00:22:31,200
Speaker 1: back down on the debt ceiling, your speakership is over,

438
00:22:31,400 --> 00:22:34,000
Speaker 1: I mean really clear for him. For the sort of

439
00:22:34,040 --> 00:22:37,160
Speaker 1: hardliners in his caucus, I mean, their whole like clout

440
00:22:37,359 --> 00:22:41,240
Speaker 1: and cred, etc. Is from posturing as these kind of

441
00:22:41,359 --> 00:22:44,600
Speaker 1: kamakaze maniacs. So they're definitely not going to back down

442
00:22:44,640 --> 00:22:47,240
Speaker 1: because it would go against their entire identity and brand.

443
00:22:47,880 --> 00:22:51,120
Speaker 1: On the Biden side, I think you know, justifiably their

444
00:22:51,240 --> 00:22:53,680
Speaker 1: view and they learn some from the twenty eleven crisis too,

445
00:22:53,800 --> 00:22:56,640
Speaker 1: is we are not going to negotiate with hostage shakers.

446
00:22:56,840 --> 00:22:59,280
Speaker 1: We're not going to give into your demands when you are,

447
00:22:59,400 --> 00:23:02,080
Speaker 1: you know, unre reasonable and just using this hijacking the

448
00:23:02,200 --> 00:23:06,040
Speaker 1: global economy to try to force on the public something

449
00:23:06,040 --> 00:23:09,159
Speaker 1: that you could not achieve through democratic means. And you know,

450
00:23:09,280 --> 00:23:11,600
Speaker 1: I think that's a reasonable position. I also think that

451
00:23:11,720 --> 00:23:15,600
Speaker 1: the democratic base would be disgusted if there was some

452
00:23:15,640 --> 00:23:17,800
Speaker 1: sort of a deal cut with the Biden White House

453
00:23:17,880 --> 00:23:22,199
Speaker 1: on Social Security, Medicare or these other entitlement spending, so

454
00:23:22,640 --> 00:23:26,560
Speaker 1: you know, they aren't really positioned to back down either.

455
00:23:26,920 --> 00:23:28,600
Speaker 1: And then when you add to the mixed wall street

456
00:23:28,640 --> 00:23:30,760
Speaker 1: basically like now we're cool with it, it's fine, you

457
00:23:30,920 --> 00:23:34,720
Speaker 1: end up with a really disturbing situation. So listen, we've

458
00:23:34,760 --> 00:23:37,679
Speaker 1: been to these deadlines and walls before. They've found a

459
00:23:37,680 --> 00:23:39,800
Speaker 1: way to work through it and it hasn't resulted in

460
00:23:39,800 --> 00:23:43,679
Speaker 1: a total catastrophic collapse. But there are reasons to be

461
00:23:43,760 --> 00:23:47,080
Speaker 1: concerned this time that it is worth keeping our eye on. YEP.

462
00:23:47,200 --> 00:23:49,600
Speaker 1: I really hope that it works out. All right, let's

463
00:23:49,640 --> 00:23:52,560
Speaker 1: talk about the latest twenty twenty fours upon us and

464
00:23:52,960 --> 00:23:56,520
Speaker 1: there are new news articles popping up about whether or

465
00:23:56,560 --> 00:23:59,080
Speaker 1: not Kamala Harris really has what it takes to continue

466
00:23:59,240 --> 00:24:02,160
Speaker 1: as vice resident. Is Joe Biden's pick for vice president.

467
00:24:02,359 --> 00:24:04,320
Speaker 1: It's going to put this up on the screen from

468
00:24:04,680 --> 00:24:08,320
Speaker 1: the Washington Post. It's always noteworthy when you get elite

469
00:24:08,320 --> 00:24:10,920
Speaker 1: media like the Post or the Times writing these types

470
00:24:10,920 --> 00:24:13,600
Speaker 1: of stories, because that means that political elites are basically

471
00:24:13,680 --> 00:24:17,160
Speaker 1: planting these stories with the Post and with other outlets

472
00:24:17,400 --> 00:24:21,880
Speaker 1: headline here, some Democrats are worried about Harris's political prospects

473
00:24:21,920 --> 00:24:24,240
Speaker 1: at a pivotal point in Biden's term. Many party activists

474
00:24:24,640 --> 00:24:27,560
Speaker 1: are not sure the vice president has shown she is

475
00:24:27,640 --> 00:24:32,240
Speaker 1: up to winning the top job. And of course, obvious

476
00:24:32,280 --> 00:24:35,960
Speaker 1: context here is when you're talking about Joe Biden being

477
00:24:36,000 --> 00:24:39,640
Speaker 1: potentially you know, if he wins reelect eighty six years

478
00:24:39,640 --> 00:24:42,199
Speaker 1: old at the end of his next term, there's a

479
00:24:42,240 --> 00:24:44,399
Speaker 1: real question whether he even makes it through that term,

480
00:24:44,960 --> 00:24:46,840
Speaker 1: then she would step right into that top job. And

481
00:24:46,880 --> 00:24:48,480
Speaker 1: if he does make it through that term, she would

482
00:24:48,520 --> 00:24:50,760
Speaker 1: be the obvious like next in line to take the

483
00:24:50,800 --> 00:24:55,240
Speaker 1: helm as the Democratic nominee. So in this article they

484
00:24:55,320 --> 00:24:59,840
Speaker 1: interviewed all of these like state level party activists and

485
00:25:00,000 --> 00:25:04,600
Speaker 1: and something like a dozen of them offered concerns about,

486
00:25:05,359 --> 00:25:07,680
Speaker 1: you know, whether or not she is up to the task.

487
00:25:07,760 --> 00:25:10,480
Speaker 1: They say. Such concerns about Harris's political strength were repeated

488
00:25:10,680 --> 00:25:13,240
Speaker 1: often by more than a dozen Democratic leaders in key

489
00:25:13,280 --> 00:25:15,679
Speaker 1: states interviewed for the story. So I'm speaking on the

490
00:25:15,680 --> 00:25:18,439
Speaker 1: condition of anonymity to convey candid thus to give you

491
00:25:18,480 --> 00:25:21,159
Speaker 1: one example of the type of concerns that are being raised.

492
00:25:21,720 --> 00:25:24,719
Speaker 1: The former chair of the Cobb County Democrats in Georgia.

493
00:25:24,800 --> 00:25:27,919
Speaker 1: I think this individual just stepped down, said, people are

494
00:25:27,960 --> 00:25:31,639
Speaker 1: poised to pounce on anything, any misstep, any gaff anything

495
00:25:31,720 --> 00:25:34,359
Speaker 1: she Kamala says, and so she's probably not getting the

496
00:25:34,400 --> 00:25:38,680
Speaker 1: benefit of the doubt. She said. They don't know enough

497
00:25:38,680 --> 00:25:41,920
Speaker 1: about what Kamala's doing, and added quote it doesn't help

498
00:25:42,040 --> 00:25:46,200
Speaker 1: that she's not that adept as a communicator. So these

499
00:25:46,200 --> 00:25:50,719
Speaker 1: are people who you know, are hardcore Democratic partisans, are

500
00:25:50,920 --> 00:25:54,000
Speaker 1: inclined to be in Kamala Harris and Joe Biden's camp,

501
00:25:54,680 --> 00:25:56,680
Speaker 1: you know, believe in the power of like you know,

502
00:25:56,840 --> 00:26:00,920
Speaker 1: representation politics and Kamala Harris being as the potential first

503
00:26:00,960 --> 00:26:05,080
Speaker 1: black woman president. But they have watched how this is

504
00:26:05,160 --> 00:26:07,920
Speaker 1: unfolded for her, and they have not been particularly impressed,

505
00:26:07,960 --> 00:26:10,040
Speaker 1: and they are concerned about whether or not she could

506
00:26:10,119 --> 00:26:13,080
Speaker 1: ultimately win and ultimately handle the job. So the fact

507
00:26:13,119 --> 00:26:15,800
Speaker 1: that you have this much discontent within the Democratic the

508
00:26:16,000 --> 00:26:19,479
Speaker 1: sort of like party establishment of the Democratic Party voicing

509
00:26:19,480 --> 00:26:21,520
Speaker 1: these concerns, and the Washington Post picking it up and

510
00:26:21,600 --> 00:26:23,480
Speaker 1: running with it is a very interesting thing. Yet we

511
00:26:23,520 --> 00:26:26,399
Speaker 1: always pay attention to this why because what matters is

512
00:26:26,480 --> 00:26:30,120
Speaker 1: the internal chatter and what's being leaked, And what's obviously

513
00:26:30,160 --> 00:26:32,520
Speaker 1: being leaked are people close to the White House who

514
00:26:32,560 --> 00:26:36,320
Speaker 1: have watched how terrible and unpopular that she has remained

515
00:26:36,440 --> 00:26:39,800
Speaker 1: in the polls all throughout the Biden presidency. She's probably

516
00:26:39,800 --> 00:26:43,240
Speaker 1: been one of the least like vice presidents in modern times.

517
00:26:43,280 --> 00:26:44,719
Speaker 1: I mean, I really think you'd have to go all

518
00:26:44,760 --> 00:26:47,520
Speaker 1: the way back to Dick Cheney. Even then, you know,

519
00:26:47,640 --> 00:26:51,080
Speaker 1: Republicans actually liked Dick Cheney a lot of the base date,

520
00:26:51,160 --> 00:26:54,160
Speaker 1: it doesn't seem that Democrats particularly feel all that enthusias.

521
00:26:54,160 --> 00:26:56,320
Speaker 1: I think Dan Quayle is probably the best example. And

522
00:26:56,359 --> 00:26:59,440
Speaker 1: again that's not even not even in my lifetime that

523
00:26:59,440 --> 00:27:01,440
Speaker 1: that happened. That's how far back we'd have to think

524
00:27:01,560 --> 00:27:04,960
Speaker 1: to somebody who is so unpopular and actively a drag

525
00:27:05,119 --> 00:27:08,919
Speaker 1: on the ticket for a sitting president of the United States,

526
00:27:08,920 --> 00:27:11,400
Speaker 1: and just a lack of political skill. That's the problem

527
00:27:11,400 --> 00:27:13,280
Speaker 1: that they face here. But how are they going to

528
00:27:13,280 --> 00:27:14,800
Speaker 1: get out of it? I just think, Look, I think

529
00:27:14,840 --> 00:27:17,160
Speaker 1: this is all Washington talk. At the end of the day.

530
00:27:17,640 --> 00:27:20,040
Speaker 1: How do you ditcher the black woman? You can't do

531
00:27:20,080 --> 00:27:22,959
Speaker 1: anything about it? Yeah, that's right. I think that's exactly right.

532
00:27:22,960 --> 00:27:24,960
Speaker 1: They put themselves in a drop of their own making.

533
00:27:25,200 --> 00:27:27,919
Speaker 1: And the person who told Joe not to pick Kamala

534
00:27:28,080 --> 00:27:31,080
Speaker 1: was actually his wife. Yes, and she's totally right about it.

535
00:27:31,320 --> 00:27:32,920
Speaker 1: I'm sure now he's like, damn, I should have listened

536
00:27:32,920 --> 00:27:35,800
Speaker 1: to her. But I agree with you. I don't see

537
00:27:35,800 --> 00:27:37,600
Speaker 1: how they back down of it. I would not be

538
00:27:37,640 --> 00:27:40,439
Speaker 1: surprised if it was Pete Boodagee and Liz Smith in

539
00:27:40,480 --> 00:27:43,480
Speaker 1: his camp who are planning some of these stories to

540
00:27:43,800 --> 00:27:46,960
Speaker 1: try to drive a wedge that or exposing a wedge

541
00:27:46,960 --> 00:27:49,639
Speaker 1: that really already exists. And I think the way that

542
00:27:49,680 --> 00:27:52,960
Speaker 1: the Democratic Party, like these local county chairs and whatever,

543
00:27:53,000 --> 00:27:54,399
Speaker 1: the way they feel about it, and the way a

544
00:27:54,400 --> 00:27:56,760
Speaker 1: lot of the Democratic base feels about both Joe and

545
00:27:56,840 --> 00:28:00,720
Speaker 1: Kamala is a level of personal warm It's not like

546
00:28:00,760 --> 00:28:04,600
Speaker 1: they despise them, but deep concerns about whether they are

547
00:28:04,680 --> 00:28:08,120
Speaker 1: actually up to the task to win again. And remember

548
00:28:08,240 --> 00:28:11,200
Speaker 1: Joe Biden's whole case in twenty twenty, The whole reason

549
00:28:11,280 --> 00:28:15,640
Speaker 1: he is there is because of electability. This is a

550
00:28:15,800 --> 00:28:19,520
Speaker 1: front of top of mind concern for the Democratic base.

551
00:28:19,800 --> 00:28:22,320
Speaker 1: It is the thing they care about seemingly more than

552
00:28:22,400 --> 00:28:26,560
Speaker 1: anything else. And so when you see the fumbling performances

553
00:28:26,600 --> 00:28:29,800
Speaker 1: from Joe, when you see the fumbling performances from with Kamala,

554
00:28:30,240 --> 00:28:33,920
Speaker 1: it really strikes at the core of what their key

555
00:28:34,600 --> 00:28:38,240
Speaker 1: concern is for the future of the Democratic Party. We

556
00:28:38,360 --> 00:28:42,560
Speaker 1: also noted this Senator Elizabeth Warren, who has certainly proven

557
00:28:42,600 --> 00:28:46,360
Speaker 1: herself to be a highly political animal, was asked about

558
00:28:46,400 --> 00:28:52,640
Speaker 1: a Biden candidacy, and she was very very clear that

559
00:28:52,680 --> 00:28:55,440
Speaker 1: she supported Joe Biden for running for another term and

560
00:28:55,520 --> 00:28:57,840
Speaker 1: was behind him for the next time around. But then

561
00:28:57,880 --> 00:29:00,680
Speaker 1: she got asked about whether Kamala Harris should be on

562
00:29:01,200 --> 00:29:03,920
Speaker 1: the ticket as the vice presidential romany again, Let's take

563
00:29:03,920 --> 00:29:06,000
Speaker 1: a li isn't what she had to say, speaking of

564
00:29:06,360 --> 00:29:08,200
Speaker 1: you're having run for presidenthould Joe Biden run again for

565
00:29:08,240 --> 00:29:09,680
Speaker 1: president to be eighty six by the time the second

566
00:29:09,760 --> 00:29:11,520
Speaker 1: term is over. Yes, he should run again. And he

567
00:29:11,600 --> 00:29:14,960
Speaker 1: is running again because he has gotten a tremendous amount done.

568
00:29:15,080 --> 00:29:18,400
Speaker 1: It's been two years. He's had the skinniest possible majority

569
00:29:18,440 --> 00:29:20,840
Speaker 1: in the United States Senate and only a very small

570
00:29:20,840 --> 00:29:23,200
Speaker 1: majority in the House. And look at what we've done.

571
00:29:23,320 --> 00:29:25,080
Speaker 1: If he is that old in a second term, that

572
00:29:25,160 --> 00:29:28,080
Speaker 1: vice presidency becomes even more important. Could Kamala Harris be

573
00:29:28,200 --> 00:29:30,080
Speaker 1: his choice of the second time around? You know, I

574
00:29:30,240 --> 00:29:34,000
Speaker 1: really want to defer to what makes Biden comfortable on

575
00:29:34,040 --> 00:29:36,120
Speaker 1: his team. I've known Kamala for a long time. I

576
00:29:36,320 --> 00:29:39,000
Speaker 1: like Kamala. I knew her back when when she was

577
00:29:39,000 --> 00:29:42,120
Speaker 1: an Attorney General and I was still teaching and we

578
00:29:42,200 --> 00:29:45,000
Speaker 1: worked on the housing crisis together. So we go way back.

579
00:29:45,440 --> 00:29:47,479
Speaker 1: But they need they have to be a team. In

580
00:29:47,520 --> 00:29:49,720
Speaker 1: my senses, they are. I don't mean that by suggesting

581
00:29:49,720 --> 00:29:51,200
Speaker 1: I think there are any problems. I think they are.

582
00:29:51,720 --> 00:29:54,680
Speaker 1: So anyway, she really had just there. She won't really say, well,

583
00:29:54,720 --> 00:29:57,080
Speaker 1: whatever Joe feels comfortable with, I'm not going to really

584
00:29:57,080 --> 00:29:59,120
Speaker 1: say now after the fact, she did kind of come

585
00:29:59,160 --> 00:30:01,080
Speaker 1: in and try to do a clean job. Okay, well

586
00:30:01,120 --> 00:30:03,880
Speaker 1: you're really moment there, Yeah, very revealing. What do you

587
00:30:03,920 --> 00:30:05,400
Speaker 1: think do you think that she's going to do She

588
00:30:05,440 --> 00:30:08,560
Speaker 1: thinks she thinks that she could still do it? Delusional? Yeah,

589
00:30:08,600 --> 00:30:11,160
Speaker 1: she might, did you possibly? She really might? I mean

590
00:30:11,280 --> 00:30:15,160
Speaker 1: just remember, like part of the reason why, going back

591
00:30:15,200 --> 00:30:18,160
Speaker 1: to my twenty twenty Democratic primary trauma, part of the

592
00:30:18,200 --> 00:30:20,480
Speaker 1: reason that she like held out and stab burning the

593
00:30:20,520 --> 00:30:22,840
Speaker 1: back and all of that was because she was like

594
00:30:22,920 --> 00:30:25,720
Speaker 1: imagining that she was going to be the vice presidential pick,

595
00:30:26,000 --> 00:30:30,120
Speaker 1: which was always fanciful, and then she thought maybe she'd

596
00:30:30,120 --> 00:30:34,520
Speaker 1: get like a cabinet pick or whatever, also fanciful, and

597
00:30:34,600 --> 00:30:36,719
Speaker 1: so you know, ends up she was wrong about all

598
00:30:36,760 --> 00:30:38,640
Speaker 1: of those things. And she's still in the center, which

599
00:30:38,680 --> 00:30:40,800
Speaker 1: is a perfectly you know, fine and important place to be.

600
00:30:41,440 --> 00:30:45,160
Speaker 1: But she she has demonstrated that level of delusion before,

601
00:30:45,240 --> 00:30:47,160
Speaker 1: so it wouldn't surprise me. Yeah, I mean I just

602
00:30:47,200 --> 00:30:49,720
Speaker 1: looked it up. She's seventy three years old, spring Chicken

603
00:30:49,760 --> 00:30:53,760
Speaker 1: in senate years and democratic politics in normal years, that's

604
00:30:53,800 --> 00:30:56,200
Speaker 1: pretty old. And you know, I was thinking, I was like, well,

605
00:30:56,360 --> 00:30:58,080
Speaker 1: maybe this is her last chance. I mean, this is

606
00:30:58,280 --> 00:31:00,840
Speaker 1: basically the last shot that you had at high or

607
00:31:00,840 --> 00:31:03,480
Speaker 1: elected office. Realistically, if you look at an actual oro

608
00:31:03,480 --> 00:31:05,560
Speaker 1: real table. So maybe this is the right time, even

609
00:31:05,560 --> 00:31:07,280
Speaker 1: though it is what a point zh one percent chance

610
00:31:07,360 --> 00:31:10,120
Speaker 1: or whatever actually happening. I mean, okay, number one, they're

611
00:31:10,120 --> 00:31:12,800
Speaker 1: not ditching Kamala because they can't get around the trap

612
00:31:12,840 --> 00:31:14,480
Speaker 1: that they made it for themselves and the way that

613
00:31:14,520 --> 00:31:17,280
Speaker 1: they've set up. You know, identity politics is central with

614
00:31:17,400 --> 00:31:20,680
Speaker 1: the Democratic base. So that's number one. Number two, even

615
00:31:20,760 --> 00:31:25,560
Speaker 1: if in some crazy scenario Kamala steps aside or whatever happens,

616
00:31:25,760 --> 00:31:28,920
Speaker 1: They're not picking Liz. They're picking Pete. They're picking Pete.

617
00:31:29,240 --> 00:31:32,600
Speaker 1: I mean, he's the one. He's a kiss ass, extraordinary.

618
00:31:33,120 --> 00:31:35,920
Speaker 1: He's positioned himself with the donor class, and I mean

619
00:31:35,960 --> 00:31:38,040
Speaker 1: one thing that we noted like in New Hampshire, he's

620
00:31:38,040 --> 00:31:41,120
Speaker 1: now meeting, actually beating Biden, which is gross for a

621
00:31:41,160 --> 00:31:43,240
Speaker 1: million reasons that Pete is on top. It is also

622
00:31:43,280 --> 00:31:46,480
Speaker 1: a tremendous sign of weakness with Biden. But if they're

623
00:31:46,520 --> 00:31:48,640
Speaker 1: looking at it and they were actually thinking about, Okay,

624
00:31:48,640 --> 00:31:50,800
Speaker 1: who would we pick for vice president, they would look

625
00:31:50,800 --> 00:31:53,440
Speaker 1: at these sort of polls and imagine that, Okay, Pete

626
00:31:53,480 --> 00:31:55,720
Speaker 1: would bring something to the ticket here. Ultimately, I remember

627
00:31:55,800 --> 00:31:58,160
Speaker 1: Joe said before, basically he wanted to build a bridge

628
00:31:58,160 --> 00:32:02,280
Speaker 1: to the Pete bootagegees of the world. So yeah, I

629
00:32:02,720 --> 00:32:06,080
Speaker 1: think Elizabeth Warren, if that is the delusion she's harboring under,

630
00:32:06,200 --> 00:32:09,120
Speaker 1: it is quite astonishing on a number of levels and

631
00:32:09,240 --> 00:32:14,440
Speaker 1: fanciful on a number of levels. Good luck. Yeah, all right,

632
00:32:14,720 --> 00:32:17,720
Speaker 1: we also have some news from the Republican side that

633
00:32:17,760 --> 00:32:20,160
Speaker 1: we can bring you this morning. It looks like Rondasantis

634
00:32:20,280 --> 00:32:23,520
Speaker 1: is increasingly positioning himself to take a crack at the

635
00:32:23,520 --> 00:32:25,840
Speaker 1: White House this time around. Go ahead, and we had

636
00:32:25,880 --> 00:32:28,920
Speaker 1: reports from Politico and the Washington Post about the team

637
00:32:28,960 --> 00:32:31,160
Speaker 1: that he is assembling. Here in Politico, they've got meet

638
00:32:31,240 --> 00:32:33,400
Speaker 1: rond Deasantis's inner circle and they just kind of go

639
00:32:33,560 --> 00:32:35,640
Speaker 1: down through the list of who the top advisors are

640
00:32:36,080 --> 00:32:39,560
Speaker 1: and who is being lined up for what position moving forward.

641
00:32:40,040 --> 00:32:41,840
Speaker 1: I don't really know any of these people, Sage. I

642
00:32:41,840 --> 00:32:43,920
Speaker 1: don't know if anybody stuck out to you in particular

643
00:32:44,000 --> 00:32:46,680
Speaker 1: as being a particular I mean some of the names,

644
00:32:46,760 --> 00:32:48,920
Speaker 1: like we don't have like the biggest heavy hitters, but

645
00:32:49,080 --> 00:32:51,280
Speaker 1: you have people who have been kind of around the

646
00:32:51,360 --> 00:32:54,640
Speaker 1: scene for a long time. Phil Cox is the only

647
00:32:54,720 --> 00:32:58,080
Speaker 1: one I have any like direct relationship with from the past,

648
00:32:58,320 --> 00:33:01,160
Speaker 1: got to seasoned kind of a communications guy. He's a

649
00:33:01,240 --> 00:33:04,920
Speaker 1: campaign general consultant of the Rummer executive they say, of

650
00:33:05,000 --> 00:33:07,880
Speaker 1: the Republican Governor's Association. So that's like a high level.

651
00:33:08,080 --> 00:33:10,760
Speaker 1: From what I hear, the most influential person in the

652
00:33:10,800 --> 00:33:15,240
Speaker 1: DeSantis world is Casey DeSantis is his wife. Almost everything

653
00:33:15,280 --> 00:33:17,760
Speaker 1: that I've heard is that she is the one driving

654
00:33:17,840 --> 00:33:20,440
Speaker 1: his presidential ambitions to the assent that there are any

655
00:33:21,040 --> 00:33:24,560
Speaker 1: that are involved, and kind of very tightly managing his image.

656
00:33:24,600 --> 00:33:27,760
Speaker 1: She featured prominently in a lot of his ads. By

657
00:33:27,800 --> 00:33:30,600
Speaker 1: all accounts, they have a very very close relationship, and

658
00:33:30,720 --> 00:33:32,920
Speaker 1: they're very like they're kind of a unit. The way

659
00:33:33,160 --> 00:33:35,680
Speaker 1: that they think of themselves. They aren't very trustworthy, don't

660
00:33:35,760 --> 00:33:37,959
Speaker 1: let a lot of people in. That is actually kind

661
00:33:37,960 --> 00:33:40,360
Speaker 1: of a problem. Just because I've said this before. We

662
00:33:40,440 --> 00:33:43,000
Speaker 1: doesn't have really a lot of people that are around

663
00:33:43,160 --> 00:33:45,840
Speaker 1: him in the same way. The biggest name that actually

664
00:33:45,920 --> 00:33:51,000
Speaker 1: jumped out to me was Miriam Adelson, because that is

665
00:33:51,080 --> 00:33:54,600
Speaker 1: an endless pile of money. Miriam Aidelson, for those who

666
00:33:54,600 --> 00:34:00,520
Speaker 1: don't know, is Shade Sheldon Adelson's wife. He since died.

667
00:34:00,840 --> 00:34:02,680
Speaker 1: That he was the casino magnate. I think he was

668
00:34:02,720 --> 00:34:04,960
Speaker 1: like the Las Vegas Sans chairman. I think he's worth

669
00:34:05,040 --> 00:34:09,040
Speaker 1: like forty something billion dollars. She is incredibly active in

670
00:34:09,360 --> 00:34:12,319
Speaker 1: Republican politics and has been for a long time. Her

671
00:34:12,400 --> 00:34:16,279
Speaker 1: own personal views almost perfectly align with Ron DeSantis. So

672
00:34:16,480 --> 00:34:19,360
Speaker 1: to see that on there as a connection as somebody

673
00:34:19,440 --> 00:34:22,359
Speaker 1: outwardly floating herself, and she was kind of pro Trump,

674
00:34:22,440 --> 00:34:24,719
Speaker 1: or at least Adelson was had a long relationship with

675
00:34:24,760 --> 00:34:27,360
Speaker 1: Trump because of the casino world. For her to go

676
00:34:27,520 --> 00:34:30,000
Speaker 1: with DeSantis this early on, that was actually the biggest

677
00:34:30,000 --> 00:34:31,719
Speaker 1: deal for me because they need a lot of money,

678
00:34:32,080 --> 00:34:34,320
Speaker 1: and if you want to do that, he's got Miriam

679
00:34:34,320 --> 00:34:36,640
Speaker 1: Adelson and Ken Griffin. I mean Ken Griffin is worth

680
00:34:36,719 --> 00:34:39,920
Speaker 1: like thirty billion dollars. I just talked about seventy billions

681
00:34:39,920 --> 00:34:41,719
Speaker 1: in wealth that you can tap right there. Yeah, So

682
00:34:42,239 --> 00:34:45,239
Speaker 1: he has like an endless well of deep pocketed I

683
00:34:45,320 --> 00:34:48,080
Speaker 1: mean you only need one really, like a multi multi

684
00:34:48,120 --> 00:34:50,319
Speaker 1: billionaire who's all in for you, and he has at

685
00:34:50,440 --> 00:34:53,320
Speaker 1: least a couple here on hand. So that is noteworthy.

686
00:34:53,480 --> 00:34:55,359
Speaker 1: Let me go ahead and put the Washhip post piece

687
00:34:55,480 --> 00:34:58,600
Speaker 1: up on the screen. Similar reporting, they say advisors to

688
00:34:58,840 --> 00:35:03,640
Speaker 1: Florida governor on DeSantis actively preparing for a possible presidential run.

689
00:35:03,719 --> 00:35:07,080
Speaker 1: They're exploring staff options. Phil Cox, who you just mentioned,

690
00:35:07,160 --> 00:35:10,239
Speaker 1: and Genera Peck involved in ongoing talks about twenty four

691
00:35:10,320 --> 00:35:12,560
Speaker 1: expected by some to play a role in the run.

692
00:35:12,680 --> 00:35:17,839
Speaker 1: Potential early state hires also identified, and so, like I said,

693
00:35:17,920 --> 00:35:21,279
Speaker 1: Cox was a former executive director of the RGA, So

694
00:35:21,400 --> 00:35:25,160
Speaker 1: that's a relatively well known person. And Genera was a

695
00:35:25,400 --> 00:35:28,520
Speaker 1: key member also of DeSantis's twenty twenty two reelect team.

696
00:35:28,560 --> 00:35:30,840
Speaker 1: They both were ultimately so those are people he like,

697
00:35:31,239 --> 00:35:32,960
Speaker 1: you know, brought on, they were involved in the re

698
00:35:33,080 --> 00:35:37,120
Speaker 1: elect and now probably going to help run a presidential campaign.

699
00:35:37,719 --> 00:35:41,240
Speaker 1: One last piece that I saw here just this morning

700
00:35:41,600 --> 00:35:45,240
Speaker 1: is it's about FEC report time. So you know, candidates

701
00:35:45,280 --> 00:35:48,680
Speaker 1: and potentially they have to file these financial disclosure reports

702
00:35:48,719 --> 00:35:50,560
Speaker 1: showing how much money they've raised, what they spent on,

703
00:35:50,560 --> 00:35:53,239
Speaker 1: et cetera, et cetera. And so it's the end of

704
00:35:53,360 --> 00:35:55,480
Speaker 1: January and Trump is going to have to file one,

705
00:35:55,760 --> 00:35:58,120
Speaker 1: and apparently the fundraising numbers are going to be pretty weak.

706
00:35:59,000 --> 00:36:02,880
Speaker 1: So we talked yesterday about how Trump was doing these

707
00:36:02,960 --> 00:36:05,520
Speaker 1: lower key events in New Hampshire, low key event in

708
00:36:05,640 --> 00:36:09,799
Speaker 1: South Carolina. And this they were portraying as an intentional

709
00:36:09,960 --> 00:36:12,440
Speaker 1: strategy of like, oh, we're harboring our resources and we're

710
00:36:12,440 --> 00:36:15,600
Speaker 1: doing things a little different this time. In reality, it

711
00:36:15,719 --> 00:36:17,600
Speaker 1: may be a bit of a sign of financial weakness

712
00:36:17,719 --> 00:36:19,840
Speaker 1: that they just don't really have the funds. Not that

713
00:36:19,880 --> 00:36:22,000
Speaker 1: they couldn't stage the rallies and don't have the money

714
00:36:22,040 --> 00:36:23,680
Speaker 1: to do it, but that it would be a more

715
00:36:23,760 --> 00:36:26,960
Speaker 1: significant strain on their resources, and that's the real reason

716
00:36:27,000 --> 00:36:29,560
Speaker 1: why they're opting for these lower key events. Yeah, exactly.

717
00:36:29,600 --> 00:36:31,880
Speaker 1: I mean, obviously money is not going to be the

718
00:36:31,920 --> 00:36:35,120
Speaker 1: same as twenty twenty. Just the level of support just

719
00:36:35,160 --> 00:36:37,920
Speaker 1: doesn't exist is whenever you're the sitting president. At the

720
00:36:37,960 --> 00:36:39,560
Speaker 1: same time, though, I do have to wonder, I mean,

721
00:36:39,600 --> 00:36:41,840
Speaker 1: what happened all that stopped the steal money, right, I

722
00:36:41,920 --> 00:36:44,160
Speaker 1: mean last time I checked want, I mean some two

723
00:36:44,280 --> 00:36:47,239
Speaker 1: hundred and fifty million dollars. Actually, in a way, he

724
00:36:47,280 --> 00:36:50,520
Speaker 1: did himself a disservice because he actively declared for president,

725
00:36:50,560 --> 00:36:52,680
Speaker 1: which means he can no longer tap that super pac

726
00:36:52,760 --> 00:36:55,360
Speaker 1: money from Save America that they have sitting in a

727
00:36:55,400 --> 00:36:58,600
Speaker 1: bank account waiting for the twenty four general election. Now

728
00:36:58,640 --> 00:37:01,600
Speaker 1: he can only fund either himself, which you know that

729
00:37:01,800 --> 00:37:04,640
Speaker 1: never happens. Donald Trump making use some of the NFT

730
00:37:04,800 --> 00:37:07,839
Speaker 1: money that he made to fund the golf money from

731
00:37:07,880 --> 00:37:09,920
Speaker 1: Saudi Arabia and went on to live golf money. He's

732
00:37:09,920 --> 00:37:13,239
Speaker 1: he's transferred on over there, or you have to go

733
00:37:13,400 --> 00:37:15,720
Speaker 1: and you have to do smaller campaign events. I actually

734
00:37:15,800 --> 00:37:19,160
Speaker 1: think though, that Trump is at his best whenever he's

735
00:37:19,239 --> 00:37:21,840
Speaker 1: in the small contingent, flying by the seat of his pants.

736
00:37:22,080 --> 00:37:25,040
Speaker 1: The more consultants and RNC types that all get involved,

737
00:37:25,080 --> 00:37:26,839
Speaker 1: the worst off that he is. I mean, the twenty

738
00:37:26,920 --> 00:37:29,400
Speaker 1: sixteen campaign was a bunch of clowns. Trust me, I

739
00:37:29,560 --> 00:37:32,439
Speaker 1: literally know these people. They are some of the least

740
00:37:32,520 --> 00:37:36,560
Speaker 1: sophisticated political operators ever. That said, that's what he needs.

741
00:37:36,640 --> 00:37:40,400
Speaker 1: He needs somebody who really doesn't restraint him. Yeah, I mean,

742
00:37:40,520 --> 00:37:43,000
Speaker 1: I think Hillary outspent him like ten to one. So

743
00:37:43,200 --> 00:37:45,320
Speaker 1: it's not like money even matters all that much. He

744
00:37:45,360 --> 00:37:47,239
Speaker 1: had more money than God in the twenty twenty election.

745
00:37:47,320 --> 00:37:50,320
Speaker 1: He still got beat. By some accounts. He outraised Biden

746
00:37:50,400 --> 00:37:52,839
Speaker 1: in the early days of the campaign. So a lot

747
00:37:52,920 --> 00:37:54,319
Speaker 1: of this I just take with a grain of salt

748
00:37:54,400 --> 00:37:56,920
Speaker 1: of doesn't matter at all. More. It's more like the

749
00:37:57,000 --> 00:37:58,759
Speaker 1: message of the candidate. He's going to get a ton

750
00:37:58,800 --> 00:38:01,799
Speaker 1: of earned media no matter what. And honestly, what's what's

751
00:38:01,840 --> 00:38:03,440
Speaker 1: he most comfortable in? I think this is his like

752
00:38:03,560 --> 00:38:06,240
Speaker 1: natural habitat Yeah. I've always thought he looks more comfortable

753
00:38:06,239 --> 00:38:08,399
Speaker 1: on Trump Force one than he does in Air Force one. Yeah.

754
00:38:08,440 --> 00:38:09,960
Speaker 1: So for him to be back on his plane, the

755
00:38:10,000 --> 00:38:12,840
Speaker 1: familiar band back together, it makes sense. We'll see. I

756
00:38:12,880 --> 00:38:15,560
Speaker 1: mean the question mark is whether in the interim listen

757
00:38:15,640 --> 00:38:17,759
Speaker 1: twenty sixteen, twenty fifteen, that was a long time ago.

758
00:38:17,840 --> 00:38:19,360
Speaker 1: At this so long and this man has been in

759
00:38:19,400 --> 00:38:22,160
Speaker 1: a presidential bubble of his own making for quite a

760
00:38:22,239 --> 00:38:24,600
Speaker 1: long time and seems to have lost a bit of

761
00:38:24,640 --> 00:38:27,800
Speaker 1: his touch that he had back then. So is he

762
00:38:27,920 --> 00:38:29,640
Speaker 1: able to get that feel back? There have been a

763
00:38:29,680 --> 00:38:32,160
Speaker 1: couple signs of it, you know, his coming out really

764
00:38:32,239 --> 00:38:34,960
Speaker 1: hard on you will not touch social Security, Medicare and

765
00:38:35,040 --> 00:38:37,120
Speaker 1: the stat ceiling thing. That was one sign of it.

766
00:38:37,239 --> 00:38:39,759
Speaker 1: I would say his positioning himself in terms of the

767
00:38:40,200 --> 00:38:44,919
Speaker 1: Russia Ukraine war is another sign of it. Abortion absolutely,

768
00:38:45,080 --> 00:38:48,160
Speaker 1: I mean even before the midterm results came out, because

769
00:38:48,200 --> 00:38:50,400
Speaker 1: that you know that you could rationalize is like, okay,

770
00:38:50,440 --> 00:38:51,960
Speaker 1: he's trying to cover his own ass. And just pit

771
00:38:52,000 --> 00:38:53,560
Speaker 1: it on like it was abortion that was the problem

772
00:38:53,560 --> 00:38:56,760
Speaker 1: in the midterms, not me. But the reporting is immediately

773
00:38:56,880 --> 00:38:59,800
Speaker 1: after Roe was overturned, he knew this was a problem

774
00:38:59,800 --> 00:39:02,239
Speaker 1: for Republicans. He knew this was really bad for Republicans.

775
00:39:02,280 --> 00:39:04,880
Speaker 1: So he does have a little bit of that. You

776
00:39:05,000 --> 00:39:08,040
Speaker 1: get glimpses still of that little bit of like normy

777
00:39:08,440 --> 00:39:12,160
Speaker 1: sensibility that is lacking in many other corners of the

778
00:39:12,239 --> 00:39:15,120
Speaker 1: Republican party. So we'll see if he can recapture any

779
00:39:15,160 --> 00:39:19,080
Speaker 1: of that original magic. Yeah, well, I'm semi doubtful, but

780
00:39:19,239 --> 00:39:24,279
Speaker 1: I think that the ingredients are possibly there. Let's go

781
00:39:24,360 --> 00:39:26,680
Speaker 1: to the next one here. This is a really interesting story,

782
00:39:26,719 --> 00:39:28,759
Speaker 1: and this is one that I think highlights something that

783
00:39:28,800 --> 00:39:30,239
Speaker 1: a lot of you have shown quite a bit of

784
00:39:30,320 --> 00:39:32,880
Speaker 1: interest in big pharma and how they make a ton

785
00:39:32,960 --> 00:39:35,719
Speaker 1: of money with the US government's help with lawyers and

786
00:39:36,160 --> 00:39:39,200
Speaker 1: with regulations. So this is probably the best example so

787
00:39:39,400 --> 00:39:41,759
Speaker 1: far from a big investigation. Let's go and put this

788
00:39:41,880 --> 00:39:44,680
Speaker 1: up there on the screen. Quote how a drug company

789
00:39:44,760 --> 00:39:47,640
Speaker 1: made one hundred and fourteen billion by gaming the US

790
00:39:47,800 --> 00:39:52,040
Speaker 1: patent system. They specifically for years delayed competition for its

791
00:39:52,080 --> 00:39:55,600
Speaker 1: blockbuster drug at the expense of patients and of taxpayer

792
00:39:55,880 --> 00:39:59,160
Speaker 1: with the monopoly that is about to end. So this

793
00:39:59,320 --> 00:40:00,880
Speaker 1: goes back to it drug that some of you might

794
00:40:00,920 --> 00:40:03,920
Speaker 1: have even taken before. It's called Humeira. In twenty sixteen,

795
00:40:03,960 --> 00:40:06,680
Speaker 1: it was poised to become a lot less valuable because

796
00:40:06,960 --> 00:40:10,200
Speaker 1: the key patent on this anti inflammatory medication, which is

797
00:40:10,280 --> 00:40:13,360
Speaker 1: used to treat stuff like arthritis, was expiring at the

798
00:40:13,520 --> 00:40:17,200
Speaker 1: end of the year. Regulators had actually blessed already a

799
00:40:17,400 --> 00:40:20,920
Speaker 1: rival version of the drug, and more copycats were already

800
00:40:21,000 --> 00:40:23,680
Speaker 1: willing to come as the patent was about to expire.

801
00:40:24,000 --> 00:40:26,799
Speaker 1: This was going to push down the medication. And I'm

802
00:40:26,880 --> 00:40:31,880
Speaker 1: not kidding here. It's actual sticker price fifty thousand dollars

803
00:40:32,160 --> 00:40:36,240
Speaker 1: per year. So how did Humeira and the manufacturer actually

804
00:40:36,320 --> 00:40:40,960
Speaker 1: do this. Well, they block the competitors from entering the

805
00:40:41,120 --> 00:40:45,000
Speaker 1: market and actually, over the next six years continued to

806
00:40:45,280 --> 00:40:49,080
Speaker 1: continue the price rise, and today this drug is the

807
00:40:49,520 --> 00:40:54,000
Speaker 1: most lucrative in the history of the entire pharmaceutical industry.

808
00:40:54,360 --> 00:40:57,320
Speaker 1: So what they did is they use their monopoly power

809
00:40:57,600 --> 00:41:02,000
Speaker 1: to orchestrate a delay by building all this intellectual property

810
00:41:02,080 --> 00:41:06,359
Speaker 1: protection around its drug and then suing would be competitors

811
00:41:06,680 --> 00:41:11,080
Speaker 1: before them, settling with them to continue delaying their product launches.

812
00:41:11,160 --> 00:41:13,520
Speaker 1: So even though they knew they were going to lose,

813
00:41:13,920 --> 00:41:18,440
Speaker 1: they used IP law, patent law, and legal legal chicanery

814
00:41:18,719 --> 00:41:23,320
Speaker 1: to continue suing them, pushing things into active litigation, delaying

815
00:41:23,400 --> 00:41:25,440
Speaker 1: the release of the drug and then doing it for

816
00:41:25,560 --> 00:41:28,040
Speaker 1: a year and delaying it because every year is printing

817
00:41:28,239 --> 00:41:32,560
Speaker 1: so many billions for the entire company one hundred and

818
00:41:32,840 --> 00:41:36,560
Speaker 1: fourteen billion. Now at this point, the current sticker price

819
00:41:36,640 --> 00:41:39,719
Speaker 1: of the drug is eighty thousand dollars a year, which

820
00:41:39,760 --> 00:41:43,320
Speaker 1: they continued. Remember this, they had fifty It's most lucrative

821
00:41:43,360 --> 00:41:45,279
Speaker 1: drug in history, So they know it's going to end.

822
00:41:45,320 --> 00:41:47,080
Speaker 1: So what do you do Whenever you have a limited

823
00:41:47,120 --> 00:41:48,880
Speaker 1: monopoly and you know they know the time is going

824
00:41:48,960 --> 00:41:51,920
Speaker 1: to expire eventually, you just keep jacking the price that

825
00:41:52,080 --> 00:41:55,480
Speaker 1: drug up significantly. It's now up over sixty percent from

826
00:41:55,560 --> 00:41:58,160
Speaker 1: one of its original and it's actually increased thirty times

827
00:41:58,200 --> 00:42:00,680
Speaker 1: in the life cycle of the entire drug, including just

828
00:42:00,800 --> 00:42:03,480
Speaker 1: eight percent this month. And by doing that, you just

829
00:42:03,640 --> 00:42:07,279
Speaker 1: print ungodly amounts of money. I mean, it really is

830
00:42:07,400 --> 00:42:10,520
Speaker 1: difficult to actually even wrap your head around what one

831
00:42:10,600 --> 00:42:14,640
Speaker 1: hundred and fourteen billion dollars actually is from a single drug.

832
00:42:15,000 --> 00:42:17,439
Speaker 1: And then when you also consider we're talking about anti

833
00:42:17,520 --> 00:42:19,440
Speaker 1: inflammatory and like, look, I don't want to go all

834
00:42:19,560 --> 00:42:21,880
Speaker 1: Instagram health here, but let's just say it was a

835
00:42:21,920 --> 00:42:23,920
Speaker 1: hell of a lot of information. In the United States,

836
00:42:24,080 --> 00:42:26,200
Speaker 1: a lot of people have arthritis, a lot of people

837
00:42:26,280 --> 00:42:28,719
Speaker 1: do not eat well, and a lot of people turn

838
00:42:28,800 --> 00:42:30,680
Speaker 1: to drugs, and doctors in particularly not going to tell

839
00:42:30,680 --> 00:42:33,120
Speaker 1: you a lot about anti inflammatory foods or any of

840
00:42:33,160 --> 00:42:34,960
Speaker 1: the other things that you can do on your own,

841
00:42:35,000 --> 00:42:37,040
Speaker 1: and instead they're going to go ahead and prescribe you

842
00:42:37,080 --> 00:42:38,600
Speaker 1: this drug. Maybe by the time you get the drug,

843
00:42:38,680 --> 00:42:40,680
Speaker 1: it's just too late at that point, or maybe you

844
00:42:40,760 --> 00:42:42,880
Speaker 1: just can genitally have arthritis, you know, any one of

845
00:42:42,920 --> 00:42:45,399
Speaker 1: these other conditions, so you actually need it in order

846
00:42:45,440 --> 00:42:48,200
Speaker 1: to live a functioning life. In the meantime, these people

847
00:42:48,640 --> 00:42:51,080
Speaker 1: earned insane amounts of money, and you have to think

848
00:42:51,120 --> 00:42:54,560
Speaker 1: too about the consumers. Even if you have and I

849
00:42:54,680 --> 00:42:57,680
Speaker 1: want people to understand this too. Everybody's like, oh, insurance,

850
00:42:57,719 --> 00:42:59,920
Speaker 1: you know, everybody likes their doctor, and whenever you go

851
00:43:00,040 --> 00:43:02,000
Speaker 1: to the pharmacists, you're like, thank God, I have insurance.

852
00:43:02,160 --> 00:43:03,920
Speaker 1: But you should think a couple of times around that,

853
00:43:04,239 --> 00:43:08,800
Speaker 1: because the insurance companies negotiate these pre rebates with the

854
00:43:08,880 --> 00:43:12,839
Speaker 1: actual pharmacies where they pay x amount per drug, even

855
00:43:12,920 --> 00:43:14,799
Speaker 1: if the production costs of that drug if you bought

856
00:43:14,840 --> 00:43:16,799
Speaker 1: it out of pocket, might be two hundred three hundred

857
00:43:16,800 --> 00:43:18,719
Speaker 1: percent less. So you think you're getting a deal, but

858
00:43:18,760 --> 00:43:21,000
Speaker 1: you're actually getting screwed. And the reason why you're getting

859
00:43:21,000 --> 00:43:23,000
Speaker 1: screwed is you have a preset amount that you can

860
00:43:23,040 --> 00:43:24,880
Speaker 1: actually spend on drugs per year. This is actually very

861
00:43:24,920 --> 00:43:27,920
Speaker 1: common in elderly plans. So you'll have let's say you're

862
00:43:27,920 --> 00:43:30,120
Speaker 1: an elderly person, you're sixty five years old, and you're like,

863
00:43:30,160 --> 00:43:31,879
Speaker 1: oh my god, I got this drug and it covers

864
00:43:32,000 --> 00:43:33,600
Speaker 1: up to ten thousand dollars per year, and I only

865
00:43:33,680 --> 00:43:35,799
Speaker 1: to pay two thousand out of my pocket. You don't

866
00:43:35,880 --> 00:43:38,080
Speaker 1: know that you're actually paying way more than if you

867
00:43:38,120 --> 00:43:40,480
Speaker 1: didn't even have insurance. You have no idea. The pharmacies

868
00:43:40,480 --> 00:43:41,920
Speaker 1: is not even allowed to tell you about this. A

869
00:43:41,960 --> 00:43:44,319
Speaker 1: lot of these are secret on competitive agreements that are

870
00:43:44,360 --> 00:43:46,920
Speaker 1: all negotiated behind the scenes. I have no idea how

871
00:43:47,000 --> 00:43:49,120
Speaker 1: any of this is even legal. But there was a

872
00:43:49,160 --> 00:43:51,600
Speaker 1: real human cost to this, which is people had to

873
00:43:51,680 --> 00:43:54,359
Speaker 1: spend a lot of their life savings or social security checks,

874
00:43:54,480 --> 00:43:58,000
Speaker 1: effectively bankrolling the manufacturer of this drug one hundred and

875
00:43:58,080 --> 00:44:00,920
Speaker 1: fourteen billion dollars. Think about how much money. And this

876
00:44:01,200 --> 00:44:07,239
Speaker 1: is a particularly egregious example because you had, for example, Medicare,

877
00:44:08,560 --> 00:44:11,239
Speaker 1: which covered in twenty twenty the cost of this drug

878
00:44:11,280 --> 00:44:14,920
Speaker 1: for forty two thousand patients, spent two point two billion

879
00:44:15,040 --> 00:44:18,920
Speaker 1: dollars more on this drug from twenty sixteen to twenty nineteen,

880
00:44:19,000 --> 00:44:22,080
Speaker 1: so just over three years than it would have if

881
00:44:22,200 --> 00:44:27,080
Speaker 1: competitors had been allowed to offer their versions of this drug.

882
00:44:27,400 --> 00:44:32,719
Speaker 1: So two billion dollars just thrown out the window for

883
00:44:32,920 --> 00:44:35,800
Speaker 1: this drug because of the way they were able to

884
00:44:35,920 --> 00:44:40,040
Speaker 1: manipulate the patent system to their benefit. And so what

885
00:44:40,160 --> 00:44:42,560
Speaker 1: I really want you to understand here is what the

886
00:44:42,600 --> 00:44:46,200
Speaker 1: pharmaceutical shills and lobbyists would say, is, Oh, we need

887
00:44:46,280 --> 00:44:48,400
Speaker 1: these patents because we're gonna you know, this is what

888
00:44:48,640 --> 00:44:52,160
Speaker 1: enables us to invest all this money and life saving research,

889
00:44:52,200 --> 00:44:55,200
Speaker 1: et cetera, et cetera. What they really spend their time

890
00:44:55,320 --> 00:44:57,600
Speaker 1: on in terms of drug research, Most of what they

891
00:44:57,680 --> 00:45:01,080
Speaker 1: spend their money on is like new formula relations minor

892
00:45:01,520 --> 00:45:05,920
Speaker 1: changes to their existing suite of highly profitable drugs. That's

893
00:45:06,000 --> 00:45:07,840
Speaker 1: one thing. So like, oh, we'll have it. Instead of

894
00:45:07,880 --> 00:45:09,840
Speaker 1: a twelve hour time release, how about we have a

895
00:45:10,160 --> 00:45:13,120
Speaker 1: thirteen hour time release that enables them, by the way,

896
00:45:13,200 --> 00:45:15,360
Speaker 1: to help them gain the patent system, because the oh,

897
00:45:15,440 --> 00:45:17,000
Speaker 1: this is a new innovation, we can get a new

898
00:45:17,040 --> 00:45:21,200
Speaker 1: patent on this and extend our monopoly on this product.

899
00:45:21,480 --> 00:45:23,840
Speaker 1: So that's one piece, and then the other piece is

900
00:45:24,360 --> 00:45:28,719
Speaker 1: the sort of lawfare that they wage in protecting these

901
00:45:28,960 --> 00:45:32,760
Speaker 1: patent regimes. So one example that they give in this article,

902
00:45:33,320 --> 00:45:36,279
Speaker 1: just to give you a sense, is an early hum

903
00:45:36,280 --> 00:45:39,960
Speaker 1: era patent that expired in twenty sixteen claimed the drug

904
00:45:40,000 --> 00:45:43,000
Speaker 1: could treat a condition known as in I don't know

905
00:45:43,080 --> 00:45:46,160
Speaker 1: how to say this something spindylitis, type of arthritis that

906
00:45:46,239 --> 00:45:50,080
Speaker 1: causes inflammation and that joints, among other diseases. In twenty fourteen,

907
00:45:50,239 --> 00:45:53,680
Speaker 1: they applied for another patent for a method of treating

908
00:45:53,880 --> 00:45:58,440
Speaker 1: this same type of arthritis. But the only thing that

909
00:45:58,520 --> 00:46:01,440
Speaker 1: was different about this patent, as they said, specific dosing

910
00:46:01,719 --> 00:46:06,640
Speaker 1: of forty milligrams. And guess what, that patent application was approved,

911
00:46:06,920 --> 00:46:10,360
Speaker 1: and that added eleven years of patent protection beyond twenty sixteen,

912
00:46:11,080 --> 00:46:13,000
Speaker 1: just for that one little tweak of Oh, it's not

913
00:46:13,239 --> 00:46:15,960
Speaker 1: just for this particular type of arthritis. It's the forty

914
00:46:16,080 --> 00:46:19,719
Speaker 1: milligram dosage in particular, and that was considered by our

915
00:46:19,800 --> 00:46:24,680
Speaker 1: legal system a sufficient innovation to justify eleven additional years

916
00:46:24,760 --> 00:46:30,160
Speaker 1: of this monopoly that is costing patients millions of dollars

917
00:46:30,239 --> 00:46:33,640
Speaker 1: and costing the federal government billions of dollars on this

918
00:46:33,880 --> 00:46:36,400
Speaker 1: one drug. The other thing I want to highlight here

919
00:46:36,680 --> 00:46:40,080
Speaker 1: is they talk about the real world human beings who

920
00:46:40,200 --> 00:46:43,240
Speaker 1: are impacted by this, and it's terrible. You have people

921
00:46:43,320 --> 00:46:45,960
Speaker 1: who know they one of the things this treats is

922
00:46:46,400 --> 00:46:50,319
Speaker 1: painful skin condition psoriasis. There is, you know, no other

923
00:46:50,440 --> 00:46:52,600
Speaker 1: drug that does what this one does to deal with

924
00:46:52,719 --> 00:46:55,920
Speaker 1: what is an incredibly uncomfortable and painful condition. And so

925
00:46:56,200 --> 00:46:59,600
Speaker 1: you've got people who are delaying retirement because they have

926
00:46:59,760 --> 00:47:02,720
Speaker 1: to their their health insurance to be able to afford

927
00:47:03,000 --> 00:47:06,000
Speaker 1: this critical drug for themselves. You have one example where

928
00:47:06,960 --> 00:47:09,680
Speaker 1: a woman was employed. Her employer. What they did, rather

929
00:47:09,680 --> 00:47:11,360
Speaker 1: than author and health insurance, they actually paid all the

930
00:47:11,440 --> 00:47:14,279
Speaker 1: medical costs on a pocket and it was costing them

931
00:47:14,400 --> 00:47:17,560
Speaker 1: seventy thousand dollars a year for her prescription, which was

932
00:47:17,600 --> 00:47:21,280
Speaker 1: actually more than her entire salary. So the HR Department

933
00:47:21,280 --> 00:47:22,880
Speaker 1: actually called her up and was like, hey, would you

934
00:47:23,000 --> 00:47:26,800
Speaker 1: be open to flying to the Bahmas to get this

935
00:47:27,000 --> 00:47:30,719
Speaker 1: drug from a place that has it much much, much,

936
00:47:30,800 --> 00:47:33,640
Speaker 1: much cheaper. And so that's what they ultimately ended up

937
00:47:33,719 --> 00:47:36,680
Speaker 1: having to do. Because of our system, the amount we

938
00:47:36,760 --> 00:47:39,239
Speaker 1: pay for prescription drugs completely insane. I actually have a

939
00:47:39,239 --> 00:47:41,640
Speaker 1: little bit of this in my monologue today. You have

940
00:47:41,760 --> 00:47:45,120
Speaker 1: people who, you know, they they were tired, who didn't

941
00:47:45,239 --> 00:47:47,640
Speaker 1: realize the way that costs were going to skyrocket for

942
00:47:47,719 --> 00:47:50,239
Speaker 1: them with this essential prescription and they just can't afford

943
00:47:50,280 --> 00:47:53,080
Speaker 1: and they're just having to go without. So there are

944
00:47:53,280 --> 00:47:56,920
Speaker 1: massive human costs for this. And the lies that were

945
00:47:56,960 --> 00:47:59,360
Speaker 1: told about how these big pharma companies are just like

946
00:47:59,480 --> 00:48:01,720
Speaker 1: looking out for us and investing in life saving research,

947
00:48:01,760 --> 00:48:04,319
Speaker 1: it's bullshit. They're spending most of their time and money

948
00:48:04,400 --> 00:48:06,919
Speaker 1: and research and efforts trying to find ways to keep

949
00:48:07,000 --> 00:48:10,320
Speaker 1: their monopolies and gouge the American consumer. It makes me

950
00:48:10,440 --> 00:48:12,640
Speaker 1: sick thinking about some eighty year old lady who's not

951
00:48:12,800 --> 00:48:15,960
Speaker 1: able to afford this drugs and literally getting breakouts of

952
00:48:16,040 --> 00:48:18,719
Speaker 1: sores all over our face, you know, I mean, she's

953
00:48:18,840 --> 00:48:21,759
Speaker 1: eighty years old, and or even one of the revelations

954
00:48:21,800 --> 00:48:23,840
Speaker 1: here you know you were touching on, is it actually

955
00:48:23,880 --> 00:48:26,400
Speaker 1: costs more for Medicare patients, So that means that the

956
00:48:26,520 --> 00:48:30,920
Speaker 1: government is directly benefiting and subsidizing quite a bit of this.

957
00:48:31,080 --> 00:48:34,560
Speaker 1: It's one of the most corrupt schemes in history. And

958
00:48:34,920 --> 00:48:38,080
Speaker 1: I don't even know how to describe how evil all

959
00:48:38,120 --> 00:48:40,080
Speaker 1: of it is. Let's put this up there on the

960
00:48:40,120 --> 00:48:41,719
Speaker 1: screen just to make sure that we link it to

961
00:48:41,840 --> 00:48:45,400
Speaker 1: something even bigger. Big pharmer groups right now are actually

962
00:48:45,520 --> 00:48:49,000
Speaker 1: rejoining a battle with governments on drug prices, and I

963
00:48:49,120 --> 00:48:51,799
Speaker 1: love the subhead here. Tight budgets and US reforms are

964
00:48:51,960 --> 00:48:55,680
Speaker 1: ending after a truce between industry and health authorities. Now

965
00:48:55,719 --> 00:48:59,200
Speaker 1: what exactly was that truce. The truce was during COVID

966
00:48:59,320 --> 00:49:02,840
Speaker 1: there was obvious massive subsidization by the US government and

967
00:49:02,920 --> 00:49:05,440
Speaker 1: by many governments around the world around COVID drugs, around

968
00:49:05,440 --> 00:49:08,960
Speaker 1: pharmaceutical research, around directly profiting not only to vaccines, but

969
00:49:09,000 --> 00:49:11,480
Speaker 1: you got to think about therapeutics and many of the

970
00:49:11,560 --> 00:49:14,319
Speaker 1: other extraordinary measures that the government went to to make

971
00:49:14,360 --> 00:49:16,440
Speaker 1: sure that these companies had everything they need to help

972
00:49:16,480 --> 00:49:19,279
Speaker 1: fight COVID. Well, now that all of that is ending,

973
00:49:19,560 --> 00:49:23,000
Speaker 1: the pharmat industry is basically going and playing hardball with

974
00:49:23,080 --> 00:49:26,000
Speaker 1: all of these governments which are rightfully pulling back on

975
00:49:26,040 --> 00:49:28,480
Speaker 1: their spending and on their subsidies, and they're like, no, no, no, no,

976
00:49:28,560 --> 00:49:30,960
Speaker 1: no no, we want to keep those subsidies going. We

977
00:49:31,080 --> 00:49:32,720
Speaker 1: want to make sure that you're going to be spending

978
00:49:32,960 --> 00:49:34,919
Speaker 1: as much as you can. They point to a couple

979
00:49:34,960 --> 00:49:37,600
Speaker 1: of examples, the same company pulling out of a major

980
00:49:38,160 --> 00:49:41,400
Speaker 1: strict price regime in Europe after the National Health Service

981
00:49:41,719 --> 00:49:45,440
Speaker 1: in the UK actually made the industry drawback some of

982
00:49:45,480 --> 00:49:48,160
Speaker 1: its cost by over three billion dollars. So it's a

983
00:49:48,239 --> 00:49:51,680
Speaker 1: major hardball situation in terms of which companies we are

984
00:49:51,760 --> 00:49:54,000
Speaker 1: willing to work with some of these regimes. And it's

985
00:49:54,080 --> 00:49:56,600
Speaker 1: not just here, it's literally all over the world. And

986
00:49:56,640 --> 00:49:58,920
Speaker 1: you should remember here we spent more on branded prescription

987
00:49:59,040 --> 00:50:02,239
Speaker 1: drugs than any other on Earth, some cases spending more

988
00:50:02,480 --> 00:50:04,600
Speaker 1: on the same drug in this country than in others,

989
00:50:04,640 --> 00:50:07,759
Speaker 1: simply because they have straight up price controls over there.

990
00:50:07,840 --> 00:50:11,400
Speaker 1: But it goes to the fact that these mandatory discounts

991
00:50:11,560 --> 00:50:14,040
Speaker 1: and all these things were taken away by many governments,

992
00:50:14,080 --> 00:50:16,319
Speaker 1: and in many cases they were subsidized, and now these

993
00:50:16,360 --> 00:50:18,839
Speaker 1: pharma companies are fighting for their life to get even

994
00:50:19,000 --> 00:50:22,680
Speaker 1: more of their profit after having this quote temporary truth.

995
00:50:22,760 --> 00:50:25,759
Speaker 1: So this goes even deeper than this one drug. Absolutely,

996
00:50:25,920 --> 00:50:28,720
Speaker 1: I mean we pay they have the numbers here. Overall,

997
00:50:29,239 --> 00:50:32,960
Speaker 1: we pay about two point five times the average drug

998
00:50:33,040 --> 00:50:36,040
Speaker 1: price paid by a group of thirty two comparison countries,

999
00:50:36,400 --> 00:50:40,840
Speaker 1: and on name brand drugs, that disparity is even larger.

1000
00:50:41,440 --> 00:50:46,800
Speaker 1: We are the pharmaceutical industry's piggybank individual consumers and the

1001
00:50:46,960 --> 00:50:50,600
Speaker 1: US government are their piggy bank. They feel free to

1002
00:50:51,000 --> 00:50:55,200
Speaker 1: gouge us to insane degrees. And you know, part of

1003
00:50:55,280 --> 00:50:57,680
Speaker 1: the problem has always been that matacare is not allowed

1004
00:50:58,120 --> 00:51:01,160
Speaker 1: to negotiate with these companies on the prices of drugs.

1005
00:51:01,400 --> 00:51:03,680
Speaker 1: So where you have France in the UK and other

1006
00:51:03,800 --> 00:51:06,640
Speaker 1: countries that are like, we're not paying more than X,

1007
00:51:07,400 --> 00:51:10,760
Speaker 1: we're not allowed to do that. Now they just passed

1008
00:51:11,120 --> 00:51:14,680
Speaker 1: legislation that would allow us on a few This is

1009
00:51:14,840 --> 00:51:17,960
Speaker 1: like such a limited reform and a handful of drugs

1010
00:51:18,200 --> 00:51:22,000
Speaker 1: to be able to negotiate prices, and these drug companies

1011
00:51:22,080 --> 00:51:27,000
Speaker 1: are freaking out even about just that incredibly moderate reform

1012
00:51:27,120 --> 00:51:30,040
Speaker 1: that we ultimately instituted. So it's a racket. I mean,

1013
00:51:30,120 --> 00:51:32,560
Speaker 1: it really is just like a criminal, criminal racket. And

1014
00:51:32,880 --> 00:51:35,799
Speaker 1: you guys are their guinea pigs. You guys are there,

1015
00:51:36,600 --> 00:51:38,480
Speaker 1: you know, you're their piggy bank. They think that they

1016
00:51:38,520 --> 00:51:40,800
Speaker 1: can go and gouge the US consumer and gouge the

1017
00:51:40,880 --> 00:51:43,560
Speaker 1: US government endlessly, and that there will never be any pushback.

1018
00:51:43,600 --> 00:51:45,880
Speaker 1: Why because they've bought off so many of our politicians,

1019
00:51:45,920 --> 00:51:49,520
Speaker 1: people like hersin Cinema, who have been like consistently making

1020
00:51:49,640 --> 00:51:52,279
Speaker 1: sure that any sort of reforms in this direction are

1021
00:51:52,360 --> 00:51:54,800
Speaker 1: completely limited. Yep, very true. All right, let's go to

1022
00:51:54,840 --> 00:51:57,560
Speaker 1: the next one here, speaking of rackets use cars. I

1023
00:51:57,640 --> 00:51:59,480
Speaker 1: can't be the only guy who was in the used

1024
00:51:59,480 --> 00:52:01,600
Speaker 1: car market over the last two years, and I was like,

1025
00:52:01,680 --> 00:52:04,840
Speaker 1: what the hell is going on in here? So some

1026
00:52:05,000 --> 00:52:07,439
Speaker 1: of that is coming to an end. And actually, while

1027
00:52:07,520 --> 00:52:09,720
Speaker 1: that is some good news if you are a consumer,

1028
00:52:09,880 --> 00:52:11,600
Speaker 1: it may not be the best of news for the

1029
00:52:11,680 --> 00:52:13,960
Speaker 1: overall car market in the United States. Let's put this

1030
00:52:14,080 --> 00:52:16,040
Speaker 1: up there on the screen. This guy, by the way,

1031
00:52:16,120 --> 00:52:18,960
Speaker 1: his name is car Dealership Guy on Twitter is an

1032
00:52:19,160 --> 00:52:22,760
Speaker 1: absolutely fascinating follow with a lot of insight into the industry.

1033
00:52:22,800 --> 00:52:24,680
Speaker 1: So he says, quote, I spoke with the smart CEO

1034
00:52:24,719 --> 00:52:27,440
Speaker 1: of a major dealer group today. He believes that used

1035
00:52:27,480 --> 00:52:30,399
Speaker 1: car prices have bottomed and it's possibly only up from here.

1036
00:52:30,719 --> 00:52:32,759
Speaker 1: He talks about how less used car supply is in

1037
00:52:32,800 --> 00:52:35,840
Speaker 1: the market. Dealers are actually holding leaner inventories due to

1038
00:52:35,960 --> 00:52:38,800
Speaker 1: higher holding costs their days supply. The average number of

1039
00:52:38,880 --> 00:52:41,200
Speaker 1: days it takes to sell a used car has significantly

1040
00:52:41,280 --> 00:52:43,799
Speaker 1: dropped dropped over the last couple of months. And less

1041
00:52:43,840 --> 00:52:47,000
Speaker 1: supply generally does going to equal higher prices too. Is

1042
00:52:47,080 --> 00:52:49,000
Speaker 1: that actually new cars and this is part of the problem.

1043
00:52:49,320 --> 00:52:51,560
Speaker 1: Even if the used car price does drop, it was

1044
00:52:51,680 --> 00:52:55,560
Speaker 1: so high and new cars being unaccessible are at record highs.

1045
00:52:55,600 --> 00:52:58,520
Speaker 1: So right now, even at the current price levels, used

1046
00:52:58,560 --> 00:53:01,920
Speaker 1: cars are still generally cheaper than a new car. It

1047
00:53:02,200 --> 00:53:04,800
Speaker 1: was a little bit of a flip during the pandemic, however,

1048
00:53:04,960 --> 00:53:09,239
Speaker 1: returning somewhat to normal and then finally there is possibil

1049
00:53:09,280 --> 00:53:10,960
Speaker 1: and I this is one thing I do hope for

1050
00:53:11,400 --> 00:53:14,719
Speaker 1: some pent up demand entering the market, because used car

1051
00:53:14,840 --> 00:53:18,040
Speaker 1: prices have finished twenty twenty two down about fifteen percent

1052
00:53:18,360 --> 00:53:20,600
Speaker 1: year over a year, so overall, as a consumer it

1053
00:53:20,719 --> 00:53:23,200
Speaker 1: might be a good time to buy a car, although

1054
00:53:23,239 --> 00:53:25,080
Speaker 1: you never do really know what's going to go on

1055
00:53:25,480 --> 00:53:28,000
Speaker 1: with that. But on a bigger and a broader level

1056
00:53:28,239 --> 00:53:31,200
Speaker 1: is actually these used car companies, of which I'm gonna

1057
00:53:31,200 --> 00:53:34,040
Speaker 1: be honest, it took full advantage of somebody. One of

1058
00:53:34,080 --> 00:53:37,320
Speaker 1: my cars was involved in an accident and the mechanic

1059
00:53:37,480 --> 00:53:39,480
Speaker 1: was like, hey man, I'm just gonna tell you this

1060
00:53:39,520 --> 00:53:40,880
Speaker 1: as a friend. He's like, you should sell this car

1061
00:53:40,960 --> 00:53:43,359
Speaker 1: right now. He's like, this car is not gonna last

1062
00:53:44,080 --> 00:53:46,480
Speaker 1: for a while after such a catastrophic accident that it

1063
00:53:46,600 --> 00:53:48,400
Speaker 1: was involved in. And he's like, these idiot you know,

1064
00:53:48,560 --> 00:53:51,160
Speaker 1: Carvana Vroom companies. He's like, they'll buy anything, and he's like,

1065
00:53:51,200 --> 00:53:53,040
Speaker 1: they'll just write you a check. And he was right.

1066
00:53:53,239 --> 00:53:56,480
Speaker 1: So maybe it turns out that wasn't such a sustainable

1067
00:53:56,760 --> 00:54:01,120
Speaker 1: business model. Let's he turn out this screen. The pandemic

1068
00:54:01,239 --> 00:54:04,239
Speaker 1: car sellers, the pandemic use car boom is coming to

1069
00:54:04,400 --> 00:54:06,799
Speaker 1: an abrupt end. And they talk about how dealership seeing

1070
00:54:06,840 --> 00:54:10,080
Speaker 1: sales and prices drop as consumers are tightening their belts,

1071
00:54:10,280 --> 00:54:14,520
Speaker 1: and that especially companies like Carvana, which were printing money

1072
00:54:14,920 --> 00:54:19,000
Speaker 1: to a historic degree over the last two years, maybe

1073
00:54:19,280 --> 00:54:22,960
Speaker 1: completely screwed. We're talking again about used car prices. They

1074
00:54:22,960 --> 00:54:26,000
Speaker 1: are falling fourteen percent on the year, but actually declining

1075
00:54:26,080 --> 00:54:29,160
Speaker 1: even more and more as the months go on, and

1076
00:54:29,520 --> 00:54:33,440
Speaker 1: all of that is significantly hurting their bottom line. Carvana

1077
00:54:33,640 --> 00:54:38,640
Speaker 1: reported a quarterly loss of more than five hundred million

1078
00:54:38,719 --> 00:54:43,560
Speaker 1: dollars and had to lay off four thousand employees. In

1079
00:54:43,640 --> 00:54:46,520
Speaker 1: the last twelve months. They have piled up significant amounts

1080
00:54:46,520 --> 00:54:50,440
Speaker 1: of debt. Its stock price has fallen ninety five percent

1081
00:54:50,640 --> 00:54:52,600
Speaker 1: in the last twelve months. At this point, I'm like,

1082
00:54:52,640 --> 00:54:54,680
Speaker 1: maybe I should buy it. Whenever you look at that,

1083
00:54:54,960 --> 00:54:57,200
Speaker 1: they maybe not financial advice, by the way, they maybe

1084
00:54:57,200 --> 00:55:00,080
Speaker 1: headed for bankruptcy a very much. Honestly, three states have

1085
00:55:00,160 --> 00:55:05,239
Speaker 1: actually suspended the Carvana operating license from consumer complaints. And

1086
00:55:05,520 --> 00:55:07,680
Speaker 1: what they're saying is, quote, we think there's a decent

1087
00:55:07,800 --> 00:55:09,680
Speaker 1: chance the company will just end up having to file

1088
00:55:09,800 --> 00:55:12,600
Speaker 1: for straight up bankruptcy. They have too much debt for

1089
00:55:12,680 --> 00:55:15,879
Speaker 1: the level of sales and profitability, can't support that debt load,

1090
00:55:16,080 --> 00:55:19,359
Speaker 1: and will likely need to restructure. Carvana to be clear,

1091
00:55:19,440 --> 00:55:22,640
Speaker 1: says that they have sufficient funds to turn its business around.

1092
00:55:22,640 --> 00:55:26,839
Speaker 1: I've heard that one before pretty recently, actually, so who knows.

1093
00:55:26,960 --> 00:55:30,479
Speaker 1: This entire experiment in the used car world, it seemed

1094
00:55:30,520 --> 00:55:32,640
Speaker 1: like everything was changing. You could buy and sell a

1095
00:55:32,719 --> 00:55:35,560
Speaker 1: car online. It's not looking so good. Right now, Chris,

1096
00:55:35,719 --> 00:55:37,680
Speaker 1: And this is one of those things that people get

1097
00:55:37,760 --> 00:55:40,279
Speaker 1: caught up in the hype of the idea. It's got

1098
00:55:40,360 --> 00:55:42,520
Speaker 1: a feel of like a sexy idea that Slim has

1099
00:55:42,600 --> 00:55:46,600
Speaker 1: come and they built these gigantic car vending machines that like,

1100
00:55:46,800 --> 00:55:48,719
Speaker 1: you know that your car would be delivered to and

1101
00:55:48,800 --> 00:55:51,120
Speaker 1: then you can go and pick up. I mean, they

1102
00:55:51,200 --> 00:55:52,960
Speaker 1: look super cool. That's what the image for those of

1103
00:55:53,000 --> 00:55:54,920
Speaker 1: you who could see on the screen was one of

1104
00:55:54,960 --> 00:55:58,440
Speaker 1: these big car vending machine towers. Unfortunately it's completely empty,

1105
00:55:59,239 --> 00:56:01,840
Speaker 1: in a sign of the times and the troubles for Carvana.

1106
00:56:02,280 --> 00:56:04,840
Speaker 1: There's kind of a deeper story here, though. Let me

1107
00:56:04,920 --> 00:56:07,279
Speaker 1: read you this piece because I think it reveals it

1108
00:56:07,400 --> 00:56:09,719
Speaker 1: connects to the tech recession stuff and some of the

1109
00:56:09,800 --> 00:56:11,560
Speaker 1: other things that we've been covering. They talk about how

1110
00:56:11,719 --> 00:56:14,240
Speaker 1: when the pandemic forced car buyers a shop online, Carvana

1111
00:56:14,320 --> 00:56:18,040
Speaker 1: became a Wall Street Darling. Its stock swored reached a

1112
00:56:18,160 --> 00:56:20,600
Speaker 1: high of about three hundred and forty five dollars a

1113
00:56:20,800 --> 00:56:24,719
Speaker 1: share back in twenty twenty one, but that hoopla obscured

1114
00:56:24,880 --> 00:56:28,040
Speaker 1: some operational troubles. The company has never reported profit for

1115
00:56:28,160 --> 00:56:31,080
Speaker 1: a full year, never reported profit for a full year.

1116
00:56:31,239 --> 00:56:33,400
Speaker 1: In the nearly decade that his shares have traded on

1117
00:56:33,480 --> 00:56:35,399
Speaker 1: the stock market, it has spent a lot of money

1118
00:56:35,440 --> 00:56:38,000
Speaker 1: to add retail locations, build those fancy towers, refine its

1119
00:56:38,040 --> 00:56:40,719
Speaker 1: online platform. In some markets, it has struggled to grow

1120
00:56:40,800 --> 00:56:43,759
Speaker 1: amid stiff competition, and it goes on to talk about

1121
00:56:43,760 --> 00:56:46,640
Speaker 1: some specific problems that they had in the Denver market.

1122
00:56:47,040 --> 00:56:51,920
Speaker 1: But again, when interest rates were basically zero and cash

1123
00:56:52,160 --> 00:56:56,200
Speaker 1: was cheap and easy, something like Carvana, which had a

1124
00:56:56,239 --> 00:56:59,600
Speaker 1: good story and seemed sexy and seemed like an idea

1125
00:56:59,640 --> 00:57:03,040
Speaker 1: that's time time had come, could continue to float its

1126
00:57:03,120 --> 00:57:05,920
Speaker 1: operations and can continue to move forward and have these

1127
00:57:06,000 --> 00:57:10,799
Speaker 1: insane stock market valuations based on the story. Well, now

1128
00:57:11,120 --> 00:57:14,160
Speaker 1: with the Federal Reserve lifting rates, the music has kind

1129
00:57:14,160 --> 00:57:16,800
Speaker 1: of stopped. And so now if you don't actually have

1130
00:57:16,920 --> 00:57:19,040
Speaker 1: a profitable business model, that is going to be a

1131
00:57:19,080 --> 00:57:21,800
Speaker 1: real problem for you. And adding to their troubles is

1132
00:57:21,840 --> 00:57:24,680
Speaker 1: the fact that they made a gigantic acquisition at sort

1133
00:57:24,720 --> 00:57:27,720
Speaker 1: of like the peak of the market, and that has

1134
00:57:27,800 --> 00:57:30,280
Speaker 1: added to a massive debt burden that has made it

1135
00:57:30,480 --> 00:57:33,680
Speaker 1: very difficult for them to ultimately overcome. So it's kind

1136
00:57:33,720 --> 00:57:36,280
Speaker 1: of a shame because you know, the idea of it

1137
00:57:36,400 --> 00:57:38,840
Speaker 1: is really cool. I also hate going to car dealerships.

1138
00:57:38,840 --> 00:57:41,280
Speaker 1: A lot of people do. They find the experience very stressful.

1139
00:57:41,320 --> 00:57:42,960
Speaker 1: The idea of just being able to like pick and

1140
00:57:43,040 --> 00:57:44,840
Speaker 1: choose at home and have the thing delivered to your

1141
00:57:44,880 --> 00:57:47,640
Speaker 1: door or at one of these local car vending machines,

1142
00:57:47,960 --> 00:57:52,320
Speaker 1: it sounds like a cool idea, but the economics of

1143
00:57:52,440 --> 00:57:54,760
Speaker 1: it at this point just have it worked out. They

1144
00:57:54,880 --> 00:57:56,560
Speaker 1: just don't have the kinks worked out. That's why they

1145
00:57:56,600 --> 00:57:58,240
Speaker 1: got their license pulled in a couple of states because

1146
00:57:58,280 --> 00:58:00,560
Speaker 1: people are having so much trouble to getting the titles

1147
00:58:00,640 --> 00:58:04,160
Speaker 1: to the cars that they supposedly already purchased. So not

1148
00:58:04,320 --> 00:58:07,320
Speaker 1: looking too good for Carbona. It's tough. I wanted Carvona

1149
00:58:07,400 --> 00:58:09,840
Speaker 1: to work, I wanted room to work. And look, it's

1150
00:58:09,920 --> 00:58:13,560
Speaker 1: because these used car dealers. They're basically legalized mob bosses.

1151
00:58:13,960 --> 00:58:15,840
Speaker 1: I don't know if people know this, but you know,

1152
00:58:16,080 --> 00:58:19,280
Speaker 1: they did an analysis in twenty nineteen of who the

1153
00:58:19,440 --> 00:58:23,560
Speaker 1: richest people in America are. So get this, twenty percent

1154
00:58:23,720 --> 00:58:26,680
Speaker 1: of people in twenty nineteen who filed an income tax

1155
00:58:26,760 --> 00:58:28,760
Speaker 1: return who made more than one point five to eight

1156
00:58:28,800 --> 00:58:32,160
Speaker 1: million dollars. They're used car dealers. These guys are making

1157
00:58:32,200 --> 00:58:34,560
Speaker 1: more money than God. And it's like, if you really

1158
00:58:34,600 --> 00:58:36,400
Speaker 1: want to be a millionaire in this country, you should

1159
00:58:36,400 --> 00:58:38,440
Speaker 1: be a used car dealer or a mechanic and body

1160
00:58:38,480 --> 00:58:41,360
Speaker 1: shop owner, because nobody knows what the hell it should cost.

1161
00:58:41,560 --> 00:58:44,160
Speaker 1: There's all these hidden ass fees that are in there,

1162
00:58:44,360 --> 00:58:47,200
Speaker 1: and if you use just even some basic business sense,

1163
00:58:47,280 --> 00:58:48,880
Speaker 1: it looks like you can extract a hell of a

1164
00:58:48,920 --> 00:58:51,040
Speaker 1: lot of rent. I went deep on this. I was like,

1165
00:58:51,080 --> 00:58:53,280
Speaker 1: how's this possible? Why then are there not used car

1166
00:58:53,360 --> 00:58:56,200
Speaker 1: dealers all over the place. There is an insane licensing

1167
00:58:56,320 --> 00:58:59,919
Speaker 1: regime that goes from the county, state, and business level

1168
00:59:00,000 --> 00:59:02,080
Speaker 1: where you both have to team up with the so

1169
00:59:02,280 --> 00:59:05,520
Speaker 1: called dealer itself, right like the brand Honda. You got

1170
00:59:05,600 --> 00:59:07,800
Speaker 1: to get permission from your local county, You got to

1171
00:59:07,840 --> 00:59:10,480
Speaker 1: deal with some real estate guys in terms of zoning

1172
00:59:10,600 --> 00:59:13,480
Speaker 1: laws and all this. It's incredibly corrupt. So a lot

1173
00:59:13,520 --> 00:59:15,480
Speaker 1: of this is actually regulated at the state and the

1174
00:59:15,520 --> 00:59:18,360
Speaker 1: county level. And of course, why would any average citizen

1175
00:59:18,480 --> 00:59:20,600
Speaker 1: ever know about this, Like, yeah, that's how it works, whatever,

1176
00:59:21,120 --> 00:59:23,919
Speaker 1: But actually you're really getting hosts. One of the ways

1177
00:59:23,960 --> 00:59:26,160
Speaker 1: I learned about this was from the battles that Tesla

1178
00:59:26,280 --> 00:59:28,760
Speaker 1: has in terms of having to open different shops and

1179
00:59:28,760 --> 00:59:31,439
Speaker 1: all that. But the more research you do, you're like, wow,

1180
00:59:31,600 --> 00:59:34,600
Speaker 1: this entire thing is a racket to a degree where

1181
00:59:34,800 --> 00:59:36,560
Speaker 1: I don't even know what an actual car should cost,

1182
00:59:36,640 --> 00:59:38,320
Speaker 1: Like if you were able to just buy it straight

1183
00:59:38,320 --> 00:59:40,280
Speaker 1: from the distributor, it might be as much as ten

1184
00:59:40,360 --> 00:59:42,720
Speaker 1: thousand dollars less. It really might. They also they have

1185
00:59:42,840 --> 00:59:45,439
Speaker 1: a lot of local political power. I mean, partly because

1186
00:59:45,480 --> 00:59:48,320
Speaker 1: they have to be able to navigate this regime and whatever,

1187
00:59:48,480 --> 00:59:52,520
Speaker 1: but oftentimes, like your local car dealership owners are very

1188
00:59:52,600 --> 00:59:55,760
Speaker 1: politically connected. They're doing local donation, they're state rep their

1189
00:59:55,760 --> 00:59:58,040
Speaker 1: state senator, et cetera. So anyway, they're a sort of

1190
00:59:58,120 --> 01:00:02,040
Speaker 1: like locally very politically powerful growth. But you know, bigger picture,

1191
01:00:03,120 --> 01:00:05,040
Speaker 1: one of the things we've been focused on, obviously, is

1192
01:00:05,080 --> 01:00:08,520
Speaker 1: the way that the fedlifting rates has dramatically impacted our economy.

1193
01:00:08,600 --> 01:00:10,640
Speaker 1: We focused a lot on the housing market and how

1194
01:00:10,720 --> 01:00:14,120
Speaker 1: much just a moderate increase and mortgage interest rates makes

1195
01:00:14,200 --> 01:00:18,439
Speaker 1: housing dramatically unaffordable, buying a home impossible for so many people.

1196
01:00:18,480 --> 01:00:21,040
Speaker 1: That's why the market is kind of like frozen at

1197
01:00:21,080 --> 01:00:24,040
Speaker 1: a standstill right now. And it's a very similar picture

1198
01:00:24,120 --> 01:00:27,320
Speaker 1: for car buying. The interest rates on auto loans have

1199
01:00:27,520 --> 01:00:31,840
Speaker 1: also gone up significantly, and in fact, there's a piece

1200
01:00:31,880 --> 01:00:34,760
Speaker 1: in this article where one of the owners, I think

1201
01:00:34,800 --> 01:00:36,440
Speaker 1: it was a car Max, was talking about you know,

1202
01:00:36,560 --> 01:00:38,960
Speaker 1: they see that people go on the website, they're looking

1203
01:00:39,000 --> 01:00:41,120
Speaker 1: at a car, they pick something out, they go and

1204
01:00:41,200 --> 01:00:43,640
Speaker 1: they calculate what that monthly payment is going to be

1205
01:00:43,840 --> 01:00:47,080
Speaker 1: given where interest rates are today, and they bail out.

1206
01:00:47,160 --> 01:00:50,160
Speaker 1: They say, I can't do it, it's not affordable anymore.

1207
01:00:50,280 --> 01:00:53,520
Speaker 1: So having a huge impact on the auto industry, and

1208
01:00:53,560 --> 01:00:55,600
Speaker 1: in particular in the used car sales, which of course

1209
01:00:55,760 --> 01:00:58,120
Speaker 1: was like red red hot during the Pinnet red hot

1210
01:00:58,200 --> 01:01:00,640
Speaker 1: also matters in terms of loans and the way that also,

1211
01:01:00,720 --> 01:01:02,680
Speaker 1: you know, cars status symbol of the United States. A

1212
01:01:02,680 --> 01:01:04,920
Speaker 1: lot of Americans buy far more cars than they actually need,

1213
01:01:05,000 --> 01:01:07,120
Speaker 1: and they buy new cars all the time. I guess

1214
01:01:07,120 --> 01:01:08,640
Speaker 1: it's one of those things that we just really love

1215
01:01:08,920 --> 01:01:10,800
Speaker 1: to spend a lot of money on, and that's actually

1216
01:01:10,840 --> 01:01:13,560
Speaker 1: a big driver of consumer sales and really a lot

1217
01:01:13,600 --> 01:01:16,080
Speaker 1: of satisfaction that people find in their lives. So how

1218
01:01:16,160 --> 01:01:18,440
Speaker 1: this impacts, how this impacts all of you is actually

1219
01:01:18,440 --> 01:01:21,360
Speaker 1: pretty significant, especially you know, used cars is seventy percent

1220
01:01:21,400 --> 01:01:23,120
Speaker 1: of the entire market. Yeah, it does make people don't

1221
01:01:23,120 --> 01:01:26,520
Speaker 1: realize that. Okay, let's go to CNN couldn't help but

1222
01:01:26,720 --> 01:01:32,200
Speaker 1: resist this particular one. Just a hilarious new analysis of

1223
01:01:32,280 --> 01:01:33,920
Speaker 1: the data. Let's go ahead and put this up there

1224
01:01:34,280 --> 01:01:38,439
Speaker 1: on the screen. CNN just suffered its worst ratings week

1225
01:01:38,920 --> 01:01:43,200
Speaker 1: in nine years. So let me just read you these numbers,

1226
01:01:43,240 --> 01:01:48,160
Speaker 1: because they're genuinely stunning. Average across all of CNN, according

1227
01:01:48,160 --> 01:01:51,960
Speaker 1: to Nielsen, was four hundred and forty four thousand in primetime,

1228
01:01:52,520 --> 01:01:56,600
Speaker 1: ninety three thousand in the all important age twenty five

1229
01:01:56,640 --> 01:02:00,000
Speaker 1: to fifty four news demographic, four hundred and seventeen thousd

1230
01:02:00,320 --> 01:02:04,040
Speaker 1: total viewers, eighty thousand in the demo for the total day.

1231
01:02:04,320 --> 01:02:08,040
Speaker 1: By comparison, they're doing so badly that they even look

1232
01:02:08,160 --> 01:02:11,120
Speaker 1: like a joke. In relation to the other cable industry,

1233
01:02:11,200 --> 01:02:13,680
Speaker 1: which is also doing like a joke. Fox News drew

1234
01:02:13,760 --> 01:02:16,320
Speaker 1: a total of just one point four million that would

1235
01:02:16,320 --> 01:02:18,640
Speaker 1: have been terrible even five years ago, and only one

1236
01:02:18,720 --> 01:02:21,080
Speaker 1: hundred and seventy six thousand of them in the key demo.

1237
01:02:21,440 --> 01:02:24,880
Speaker 1: MSNBC notching only six hundred and twenty nine thousand total viewers,

1238
01:02:25,240 --> 01:02:28,880
Speaker 1: only sixty nine thousand in the key demographic. I mean,

1239
01:02:29,240 --> 01:02:33,120
Speaker 1: just imagine this at the peak of Fox, MSNBC, at CNN,

1240
01:02:33,440 --> 01:02:35,760
Speaker 1: not a single one of them can crack more than

1241
01:02:35,800 --> 01:02:39,080
Speaker 1: two hundred and fifty thousand people in the key demographic.

1242
01:02:39,480 --> 01:02:43,800
Speaker 1: Imagine a basic YouTube creator out there is getting more

1243
01:02:43,840 --> 01:02:46,400
Speaker 1: than two hundred and fifty thousand views in the key demo.

1244
01:02:46,480 --> 01:02:49,200
Speaker 1: I think almost one hundred percent of the views on

1245
01:02:49,400 --> 01:02:51,840
Speaker 1: this channel and of our podcast downloads from what we

1246
01:02:51,960 --> 01:02:55,680
Speaker 1: are able to know, are all in the key demo.

1247
01:02:55,800 --> 01:02:58,440
Speaker 1: And you could probably say that about all of new

1248
01:02:58,560 --> 01:03:02,120
Speaker 1: media independent media. This is just horrific, and it doesn't

1249
01:03:02,120 --> 01:03:04,480
Speaker 1: make any sense relative to the amount of money that

1250
01:03:04,520 --> 01:03:07,160
Speaker 1: they get paid because it's a fake industry. The entire

1251
01:03:07,240 --> 01:03:11,120
Speaker 1: thing propped up by these cable subscriber fees. Can you

1252
01:03:11,160 --> 01:03:13,360
Speaker 1: imagine if someone paid us a billion dollars just to exist.

1253
01:03:13,640 --> 01:03:16,760
Speaker 1: That's basically what it is. That's how their business model

1254
01:03:17,120 --> 01:03:21,200
Speaker 1: has no impact on whether people watch their stuff or not.

1255
01:03:21,320 --> 01:03:23,880
Speaker 1: But the funny part to me is that all of

1256
01:03:23,960 --> 01:03:26,200
Speaker 1: the new changes that they've made at the network Crystal

1257
01:03:26,440 --> 01:03:29,720
Speaker 1: have been a massive failure. The Don Lemon one in particular,

1258
01:03:30,040 --> 01:03:32,520
Speaker 1: has actually which was supposed to revamp the Morning. They

1259
01:03:32,600 --> 01:03:36,760
Speaker 1: actually dropped from their originally pathetic numbers by several by

1260
01:03:36,880 --> 01:03:40,160
Speaker 1: tens of thousands of viewers. In total, it is now

1261
01:03:40,480 --> 01:03:43,440
Speaker 1: the one of the worst most dismally rated shows in

1262
01:03:43,560 --> 01:03:47,320
Speaker 1: the history of cable television in the Morning. And what

1263
01:03:47,440 --> 01:03:49,280
Speaker 1: are they going to do about it? I mean, look,

1264
01:03:49,400 --> 01:03:51,680
Speaker 1: at this point, I'm not sure if it's possible. Like

1265
01:03:51,800 --> 01:03:55,400
Speaker 1: CNN CEO Chris Licked, he gave an interview yesterday to

1266
01:03:55,560 --> 01:03:57,880
Speaker 1: the Los Angeles Times. Let's put this up there on

1267
01:03:57,960 --> 01:04:00,360
Speaker 1: the screen, and this is one of those views you

1268
01:04:00,360 --> 01:04:03,040
Speaker 1: probably should just never say some of these things out loud,

1269
01:04:03,320 --> 01:04:05,880
Speaker 1: because he was like, we want to restore trust. And

1270
01:04:06,080 --> 01:04:08,840
Speaker 1: the interviewer is like, what does that mean? Why exactly

1271
01:04:09,120 --> 01:04:11,040
Speaker 1: do you want to restore trust? And he said, well,

1272
01:04:11,120 --> 01:04:12,960
Speaker 1: we have a lot of data to say that trust

1273
01:04:13,040 --> 01:04:17,080
Speaker 1: has eroded. And you're like, wow, you're just that explain why.

1274
01:04:17,600 --> 01:04:19,320
Speaker 1: He's like, we got to fix it because we can

1275
01:04:19,360 --> 01:04:21,000
Speaker 1: see in our data it's a real problem. We can

1276
01:04:21,080 --> 01:04:24,040
Speaker 1: see within our data that people don't trust us anymore.

1277
01:04:24,400 --> 01:04:27,040
Speaker 1: Of course, his solution to that was hiring Bill Maher

1278
01:04:27,880 --> 01:04:30,240
Speaker 1: and putting Don Lemon in the Morning, putting stuff that

1279
01:04:30,400 --> 01:04:33,240
Speaker 1: was available on YouTube for free on eleven thirty at night.

1280
01:04:33,360 --> 01:04:36,600
Speaker 1: That's an interesting strategy. We'll see if it works out. Yeah,

1281
01:04:36,680 --> 01:04:40,200
Speaker 1: putting Don Lemon in a hoodie up on the morning, okay,

1282
01:04:41,200 --> 01:04:44,560
Speaker 1: again fascinating also, of course, as you you actually worked

1283
01:04:44,560 --> 01:04:46,520
Speaker 1: in this environment, I never have. I'm only observed they're

1284
01:04:46,520 --> 01:04:48,360
Speaker 1: already sniping at each other from behind the scenes. Oh

1285
01:04:48,400 --> 01:04:51,400
Speaker 1: you re there. You know there's strife at the show

1286
01:04:51,480 --> 01:04:54,280
Speaker 1: as it struggles to find its voice. You can tell

1287
01:04:54,840 --> 01:04:57,320
Speaker 1: me despise each other. Yeah, I mean, and some of

1288
01:04:57,400 --> 01:05:00,280
Speaker 1: that between Caitlin Collins and Don Lemon. The the fact

1289
01:05:00,320 --> 01:05:02,920
Speaker 1: that that's spilled out onto the air right tells you

1290
01:05:03,320 --> 01:05:05,760
Speaker 1: it is really easily behind the scenes, because I mean,

1291
01:05:05,800 --> 01:05:09,160
Speaker 1: they really you know, obviously you're trying to be professional whatever,

1292
01:05:09,280 --> 01:05:11,400
Speaker 1: I try to keep that behind the scenes. So the

1293
01:05:11,440 --> 01:05:13,240
Speaker 1: fact that's spilling out on air at all tells you

1294
01:05:13,320 --> 01:05:15,600
Speaker 1: they like already completely despise each other. And yeah, the

1295
01:05:15,680 --> 01:05:17,600
Speaker 1: fact that there are these kinds of leaks coming out

1296
01:05:17,640 --> 01:05:22,680
Speaker 1: from the program about its troubles. Apparently the EP that

1297
01:05:22,960 --> 01:05:26,360
Speaker 1: was you know, originally on the show has already been reassigned,

1298
01:05:26,640 --> 01:05:29,120
Speaker 1: already fired, which already you know, which is a major

1299
01:05:29,200 --> 01:05:31,640
Speaker 1: indication that they feel like this is not going well.

1300
01:05:31,800 --> 01:05:34,760
Speaker 1: And part of what ellisten, I haven't watched it, so

1301
01:05:34,880 --> 01:05:36,840
Speaker 1: I don't want to claim I like really know the

1302
01:05:36,920 --> 01:05:38,560
Speaker 1: ins and outs of why it's failing and why the

1303
01:05:38,600 --> 01:05:41,920
Speaker 1: mechanics aren't working. But what they're talking about is the

1304
01:05:42,000 --> 01:05:45,360
Speaker 1: whole concept is really kind of confused, at least with

1305
01:05:45,480 --> 01:05:48,520
Speaker 1: the you know, John Berman and Allison Camerda, like they

1306
01:05:48,600 --> 01:05:51,560
Speaker 1: had a decent camaraderie, they were able to bounce off

1307
01:05:51,600 --> 01:05:54,000
Speaker 1: each other, and you knew what the show was, right.

1308
01:05:54,200 --> 01:05:57,439
Speaker 1: It's a political morning show. It's a news morning show

1309
01:05:57,600 --> 01:05:59,920
Speaker 1: with the CNN liberal slant, like that's what it is.

1310
01:06:00,760 --> 01:06:04,520
Speaker 1: Now they're sort of trying to bring in these elements

1311
01:06:04,560 --> 01:06:07,240
Speaker 1: of like a Today Show kind of thing, but then

1312
01:06:07,280 --> 01:06:10,120
Speaker 1: it's also trying to be the you know, CNN news

1313
01:06:10,400 --> 01:06:14,160
Speaker 1: politics thing that it was, and the two things just

1314
01:06:14,360 --> 01:06:18,600
Speaker 1: do not really mesh together. And so there's concern of like, Okay, well,

1315
01:06:18,640 --> 01:06:22,360
Speaker 1: you're not winning the morning show watchers from today's show.

1316
01:06:22,400 --> 01:06:25,000
Speaker 1: That's a totally different thing, and you're not winning those

1317
01:06:25,040 --> 01:06:28,400
Speaker 1: people over, and now you're in danger of losing the audience,

1318
01:06:28,640 --> 01:06:31,960
Speaker 1: the small audience that you did have. So and then

1319
01:06:32,040 --> 01:06:34,200
Speaker 1: you know, you put together three personalities that clearly don't

1320
01:06:34,320 --> 01:06:37,120
Speaker 1: like particularly like each other or vibe, which is incredibly

1321
01:06:37,160 --> 01:06:40,439
Speaker 1: important on television. And you know, nobody wants to watch

1322
01:06:40,480 --> 01:06:42,520
Speaker 1: three people who like hate each other's guts. No one

1323
01:06:42,600 --> 01:06:44,880
Speaker 1: wants to watch that, except for in like a viral

1324
01:06:44,920 --> 01:06:47,200
Speaker 1: clip that I'll watch. But as a sustainable like this

1325
01:06:47,320 --> 01:06:49,000
Speaker 1: is how I'm gonna start my day, absolutely not, So

1326
01:06:49,520 --> 01:06:52,880
Speaker 1: that's a disaster. Their other big change that they are

1327
01:06:53,200 --> 01:06:57,080
Speaker 1: making is instead, at least this is the way I

1328
01:06:57,240 --> 01:06:58,680
Speaker 1: read it, I don't know. I read this like four

1329
01:06:58,720 --> 01:07:01,000
Speaker 1: times to make sure I was understand it correct. Here's

1330
01:07:01,040 --> 01:07:03,320
Speaker 1: what they say. The network is going to host a

1331
01:07:03,600 --> 01:07:09,920
Speaker 1: standalone weekday nine to twelve block anchored by John Burman,

1332
01:07:10,040 --> 01:07:13,080
Speaker 1: Kate Baldwin, and Sarah Sidner. Then they're going to have

1333
01:07:13,200 --> 01:07:18,560
Speaker 1: a one to four pm standalone block hosted by Brianna Kaelor,

1334
01:07:18,960 --> 01:07:22,840
Speaker 1: Boris Sanchez and Jim Shudeo. So instead of having like

1335
01:07:22,920 --> 01:07:26,640
Speaker 1: the individual anchors per hour, they're going to do two

1336
01:07:26,920 --> 01:07:31,480
Speaker 1: more giant three hour blocks with these trios of anchors, which, again,

1337
01:07:31,720 --> 01:07:35,080
Speaker 1: like you know, if the vibe works out, maybe, I mean,

1338
01:07:35,400 --> 01:07:37,919
Speaker 1: but if any of these people have friction or they're

1339
01:07:38,000 --> 01:07:39,720
Speaker 1: not able to gel together, it's going to be a

1340
01:07:40,120 --> 01:07:43,800
Speaker 1: I don't know, and the whole thing just has the

1341
01:07:44,560 --> 01:07:48,160
Speaker 1: it's giving rearranging the deck chairs on the Titanic. Absolutely

1342
01:07:48,240 --> 01:07:51,040
Speaker 1: not bringing in anything new, not really doing anything new,

1343
01:07:51,240 --> 01:07:53,439
Speaker 1: just like, let me just reconfigure what I've got here

1344
01:07:53,560 --> 01:07:55,680
Speaker 1: and sell it like it's some brand new concept and

1345
01:07:55,720 --> 01:07:58,120
Speaker 1: we're doing something totally different, when really it's just kind

1346
01:07:58,120 --> 01:08:01,600
Speaker 1: of the same old thing in our new, probably worse

1347
01:08:01,680 --> 01:08:04,800
Speaker 1: reconstituted form. Their biggest problem is how can you go

1348
01:08:04,880 --> 01:08:07,680
Speaker 1: outside the form when anybody with the brain would not

1349
01:08:07,840 --> 01:08:09,680
Speaker 1: work within that form. Imagine if they came to it.

1350
01:08:09,680 --> 01:08:11,080
Speaker 1: First of all, it would never happen. But like if

1351
01:08:11,080 --> 01:08:13,000
Speaker 1: they came to it, whoa we should come? You're like,

1352
01:08:13,080 --> 01:08:16,080
Speaker 1: so we should shorten our show, give up our business,

1353
01:08:16,280 --> 01:08:18,800
Speaker 1: give up our independence all to come and work for

1354
01:08:18,920 --> 01:08:22,080
Speaker 1: you so that we can speak in between advertising breaks,

1355
01:08:22,600 --> 01:08:25,320
Speaker 1: all while having a corporate sensor over your mouth the

1356
01:08:25,439 --> 01:08:28,360
Speaker 1: entire Why would we ever do that? Of course? You

1357
01:08:28,400 --> 01:08:30,680
Speaker 1: know they say money, but like, look, some of us

1358
01:08:30,800 --> 01:08:34,280
Speaker 1: value things much more than money. It's called independence and

1359
01:08:34,320 --> 01:08:37,120
Speaker 1: be able to say what you actually think. And there's

1360
01:08:37,120 --> 01:08:39,200
Speaker 1: a lot of people like that that are all in

1361
01:08:39,320 --> 01:08:41,800
Speaker 1: this business. None of whom would even conform to what

1362
01:08:41,960 --> 01:08:45,160
Speaker 1: CNN would want. And then number two, anybody that would

1363
01:08:45,200 --> 01:08:47,640
Speaker 1: probably be willing to go work there, Well, that's not

1364
01:08:47,680 --> 01:08:49,320
Speaker 1: really somebody who's going to be able to even really

1365
01:08:49,360 --> 01:08:52,080
Speaker 1: be able to bring an audience in the first place. Sure,

1366
01:08:52,160 --> 01:08:54,200
Speaker 1: the mar thing is not a bad strategy. I mean,

1367
01:08:54,280 --> 01:08:56,920
Speaker 1: since he has a big a fan base that does

1368
01:08:57,000 --> 01:08:59,000
Speaker 1: watch him on HBO and you have some of that.

1369
01:08:59,080 --> 01:09:00,880
Speaker 1: But I just keep coming back to if you really

1370
01:09:00,920 --> 01:09:02,840
Speaker 1: want to watch, just go on YouTube, Like why you

1371
01:09:03,000 --> 01:09:06,679
Speaker 1: tune in live? That impetus. I just think that's gone.

1372
01:09:06,720 --> 01:09:11,600
Speaker 1: I think it's dead outside of breaking news, prestige television

1373
01:09:11,840 --> 01:09:13,600
Speaker 1: like The Last of Us, which I'm currently obsessed with

1374
01:09:14,120 --> 01:09:16,360
Speaker 1: dying right now from the last episode. People who know

1375
01:09:16,439 --> 01:09:19,760
Speaker 1: what I'm talking about, Well, there's that, there's sports, which

1376
01:09:19,760 --> 01:09:22,519
Speaker 1: people like to watch live, and then there's if there's

1377
01:09:22,600 --> 01:09:26,280
Speaker 1: some major breaking news event. I mean, that's still where

1378
01:09:26,880 --> 01:09:30,719
Speaker 1: CNN and ANTEC and Fox News, but CNN in particular,

1379
01:09:31,160 --> 01:09:33,559
Speaker 1: that's where they really still have a value add because

1380
01:09:33,560 --> 01:09:36,120
Speaker 1: they do have this gigantic global footprint and if you're

1381
01:09:36,240 --> 01:09:38,040
Speaker 1: just in the situation where the facts are coming, you're

1382
01:09:38,040 --> 01:09:39,519
Speaker 1: trying to figure out what the hell is going on.

1383
01:09:40,040 --> 01:09:41,840
Speaker 1: You know, that's still where they are kind of like

1384
01:09:41,960 --> 01:09:44,760
Speaker 1: at their best. But you can't think there are going

1385
01:09:44,840 --> 01:09:46,280
Speaker 1: to be a lot of weeks where you don't have

1386
01:09:46,479 --> 01:09:50,200
Speaker 1: that gigantic breaking news tent pole type of event. And

1387
01:09:51,040 --> 01:09:53,400
Speaker 1: I think your initial point is the most important one

1388
01:09:53,520 --> 01:09:56,640
Speaker 1: and one that frankly all of these cable news operators

1389
01:09:56,680 --> 01:09:59,160
Speaker 1: are aware of, which is that their business model is

1390
01:09:59,200 --> 01:10:02,160
Speaker 1: a zombie shop. It does not make sense, Like if

1391
01:10:02,200 --> 01:10:04,280
Speaker 1: you were going to invent this thing today, it would

1392
01:10:04,360 --> 01:10:07,000
Speaker 1: never work because people would be like, I'm not paying

1393
01:10:07,120 --> 01:10:10,479
Speaker 1: these premium ad dollar rates for your show that nobody

1394
01:10:10,520 --> 01:10:14,120
Speaker 1: watches and which has like a trash reputation. I'm not paying,

1395
01:10:14,360 --> 01:10:16,800
Speaker 1: you know, to add you to my cable bundle, like

1396
01:10:17,040 --> 01:10:19,960
Speaker 1: charging my cable subscribers more to add you to my

1397
01:10:20,040 --> 01:10:22,720
Speaker 1: cable bundle when people aren't even really watching it. I'm

1398
01:10:22,760 --> 01:10:25,639
Speaker 1: certainly not paying you what they're getting paid right now.

1399
01:10:26,400 --> 01:10:28,679
Speaker 1: And so that's why you see all this cost cutting

1400
01:10:28,720 --> 01:10:30,479
Speaker 1: across the industry. I mean, in particular at m A,

1401
01:10:30,520 --> 01:10:33,240
Speaker 1: SMBC and CNN Fox because they have a larger audience,

1402
01:10:33,240 --> 01:10:35,240
Speaker 1: they have a little bit of a larger, longer timeframe.

1403
01:10:35,320 --> 01:10:37,000
Speaker 1: But the writing is on the wall for them as well.

1404
01:10:37,520 --> 01:10:40,000
Speaker 1: You know, they're they're trying to hold on as best

1405
01:10:40,080 --> 01:10:42,200
Speaker 1: they can to what they have to pare down their

1406
01:10:42,280 --> 01:10:45,519
Speaker 1: expenses and be able to make it work. And you know,

1407
01:10:45,680 --> 01:10:48,640
Speaker 1: you can see it in this sort of like rearranging

1408
01:10:48,720 --> 01:10:52,040
Speaker 1: the deck chairs approach that Chris Lick is taking. Because

1409
01:10:52,320 --> 01:10:56,000
Speaker 1: you can't pay to bring in gigantic new talent, that's

1410
01:10:56,080 --> 01:10:58,519
Speaker 1: not going to work out. They cut the you know,

1411
01:10:58,640 --> 01:11:01,559
Speaker 1: original series that CNN was paying a lot of money

1412
01:11:01,600 --> 01:11:04,439
Speaker 1: for those, and frankly they were successful. Yeah, we're good.

1413
01:11:04,560 --> 01:11:07,320
Speaker 1: Even that they know they're cutting all of that out,

1414
01:11:07,400 --> 01:11:08,840
Speaker 1: he's saying, Oh, we're going to do it in house,

1415
01:11:08,880 --> 01:11:10,559
Speaker 1: and it's just going to be just as good. I'm

1416
01:11:10,600 --> 01:11:13,200
Speaker 1: highly doubtful of that. So anyway, that's the situation that

1417
01:11:13,240 --> 01:11:15,639
Speaker 1: they're in. We'll see where it all ends. Good luck,

1418
01:11:18,479 --> 01:11:20,479
Speaker 1: all right, Sacher, we are you looking at well. One

1419
01:11:20,520 --> 01:11:23,120
Speaker 1: of the most consequential foreign policy minds in American history

1420
01:11:23,200 --> 01:11:25,320
Speaker 1: is probably someone you've never heard of unless you were

1421
01:11:25,400 --> 01:11:28,719
Speaker 1: an international relations major. George Kennon. He was a diplomat

1422
01:11:28,800 --> 01:11:31,760
Speaker 1: for the United States and towards Russia, expert who after

1423
01:11:31,920 --> 01:11:35,519
Speaker 1: World War II, became the father of containment strategy towards

1424
01:11:35,600 --> 01:11:38,719
Speaker 1: the Soviet Union. In a nutshell, containment was a winning

1425
01:11:38,880 --> 01:11:41,040
Speaker 1: argument at the time in a debate about how to

1426
01:11:41,120 --> 01:11:43,400
Speaker 1: handle the Soviet Union. On the one hand, you had

1427
01:11:43,479 --> 01:11:46,599
Speaker 1: Mccarthurits and others who advocated a policy of rollback, which

1428
01:11:46,680 --> 01:11:49,960
Speaker 1: effectively meant confronting the Soviet Union where they were and

1429
01:11:50,080 --> 01:11:52,560
Speaker 1: trying to push their domination of the Eastern bloc of

1430
01:11:52,600 --> 01:11:55,839
Speaker 1: Europe back to the core territory of Russia. Kennan's containment

1431
01:11:55,880 --> 01:11:59,400
Speaker 1: strategy recognized the danger of Soviet expansionism, but struck a

1432
01:11:59,439 --> 01:12:01,840
Speaker 1: more defense of tone that the policy of the United

1433
01:12:01,880 --> 01:12:04,719
Speaker 1: States should be quote that of a long term, patient,

1434
01:12:04,800 --> 01:12:09,280
Speaker 1: but firm and vigilant containment of Russian expansive tendencies. Kennen

1435
01:12:09,520 --> 01:12:13,200
Speaker 1: argued that containing the Soviet Union from further expansion avoided

1436
01:12:13,240 --> 01:12:16,360
Speaker 1: the risk of direct confrontation, and that, if pursued, would

1437
01:12:16,360 --> 01:12:19,040
Speaker 1: eventually cause it to break up. He was right, of course,

1438
01:12:19,080 --> 01:12:20,920
Speaker 1: at the time, in a debate that could have easily

1439
01:12:21,000 --> 01:12:24,120
Speaker 1: led us to nuclear confrontation, and his analysis was built

1440
01:12:24,240 --> 01:12:27,120
Speaker 1: upon years of dealing with the Russians both before and

1441
01:12:27,320 --> 01:12:30,680
Speaker 1: after and during World War Two. Having suffered through the

1442
01:12:30,760 --> 01:12:34,880
Speaker 1: trauma of watching millions of people die. Usually, though the

1443
01:12:34,960 --> 01:12:38,160
Speaker 1: hagiography of Kennen in official circles it ends right there.

1444
01:12:38,439 --> 01:12:40,320
Speaker 1: People who see him rightfully as one of the most

1445
01:12:40,360 --> 01:12:43,360
Speaker 1: important architects of the post World War two international order

1446
01:12:43,560 --> 01:12:46,280
Speaker 1: and the father of containment liked to disregard much of

1447
01:12:46,360 --> 01:12:49,559
Speaker 1: his realist tendencies, which governed his thoughts throughout his life,

1448
01:12:49,760 --> 01:12:51,960
Speaker 1: and especially in his thoughts of how the United States

1449
01:12:52,000 --> 01:12:55,080
Speaker 1: should approach Russia after the breakup of the Soviet Union.

1450
01:12:55,360 --> 01:12:56,720
Speaker 1: Those of you who have been watching for a while

1451
01:12:56,800 --> 01:12:59,880
Speaker 1: will remember Kennon's warnings about NATO expansionism in nineteen nine,

1452
01:13:00,640 --> 01:13:03,400
Speaker 1: when he wrote, quote, such a decision may be expected

1453
01:13:03,479 --> 01:13:07,679
Speaker 1: to inflame the nationalistic, anti western militaristic tendencies in Russian opinion,

1454
01:13:07,960 --> 01:13:10,800
Speaker 1: to have an adverse effect on the development of Russian democracy,

1455
01:13:11,000 --> 01:13:13,360
Speaker 1: to restore the atmosphere of the Cold War to East

1456
01:13:13,439 --> 01:13:16,559
Speaker 1: West relations, and to impel Russian foreign policy and directions

1457
01:13:17,120 --> 01:13:20,840
Speaker 1: decidedly not to our liking. Furthermore, a new biography of

1458
01:13:20,920 --> 01:13:23,320
Speaker 1: Kenan actually tells us even more. Kennen wrote in a

1459
01:13:23,400 --> 01:13:26,000
Speaker 1: private letter after the admission of the former Saviet Soviet

1460
01:13:26,040 --> 01:13:28,719
Speaker 1: States in to NATO the quote nowhere does this choice

1461
01:13:28,760 --> 01:13:32,519
Speaker 1: appear more portentious and pregnant with fateful consequences than in

1462
01:13:32,600 --> 01:13:36,360
Speaker 1: the case of Ukraine. Kennan actually thought a lot about Ukraine.

1463
01:13:36,600 --> 01:13:38,599
Speaker 1: He warned in a series of memos throughout the Cold

1464
01:13:38,680 --> 01:13:41,519
Speaker 1: War that if Ukraine were to get its independence from Russia, quote,

1465
01:13:41,680 --> 01:13:45,040
Speaker 1: Washington should not interfere, at least initially, because quote an

1466
01:13:45,120 --> 01:13:48,760
Speaker 1: independent Ukraine would be challenged eventually from the Russian side.

1467
01:13:49,120 --> 01:13:51,519
Speaker 1: Perhaps an end to this nightmare in Ukraine can be

1468
01:13:51,640 --> 01:13:54,160
Speaker 1: found in his pressience. He actually wrote that for any

1469
01:13:54,280 --> 01:13:56,920
Speaker 1: potential balance of power to work in Ukraine, that the

1470
01:13:57,040 --> 01:13:59,400
Speaker 1: United States should quote push for a composing of the

1471
01:13:59,439 --> 01:14:03,360
Speaker 1: differences along the lines of a reasonable federalism. He especially

1472
01:14:03,439 --> 01:14:05,600
Speaker 1: thought it was important for the US to understand the

1473
01:14:05,680 --> 01:14:09,080
Speaker 1: population of Greater Russians living throughout the Soviet Bloc, and

1474
01:14:09,200 --> 01:14:12,040
Speaker 1: anticipated that should break up occur, it was important to

1475
01:14:12,120 --> 01:14:15,479
Speaker 1: have a genuinely representative coalition in the region. Really, what

1476
01:14:15,600 --> 01:14:18,320
Speaker 1: strikes me in reading Kennon's words almost seventy five years

1477
01:14:18,320 --> 01:14:21,519
Speaker 1: ago is just how much remains exactly the same now.

1478
01:14:21,600 --> 01:14:23,400
Speaker 1: To be sure, look, he got a lot wrong. He

1479
01:14:23,520 --> 01:14:25,639
Speaker 1: was wrong about how quickly it would take for Ukrainian

1480
01:14:25,680 --> 01:14:28,360
Speaker 1: national identity to form and the ferocity of its defense

1481
01:14:28,400 --> 01:14:32,160
Speaker 1: went under attack. But underlying his analysis was a weary

1482
01:14:32,240 --> 01:14:35,120
Speaker 1: man who went to Moscow in nineteen thirty three. He

1483
01:14:35,280 --> 01:14:37,920
Speaker 1: lived through the Stalin Purges, he saw rivers of blood

1484
01:14:38,040 --> 01:14:40,720
Speaker 1: flow through World War II, and he was animated through

1485
01:14:40,800 --> 01:14:43,840
Speaker 1: his entire life of an intense desire to the end

1486
01:14:43,880 --> 01:14:47,080
Speaker 1: of his days to never see that happen again. In fact,

1487
01:14:47,320 --> 01:14:48,920
Speaker 1: at the end of the Cold War, when he really

1488
01:14:48,960 --> 01:14:51,000
Speaker 1: got a lot of a claim for how containment would

1489
01:14:51,120 --> 01:14:53,760
Speaker 1: end the Soviet Union, he actually wrote that he thought

1490
01:14:53,800 --> 01:14:57,000
Speaker 1: the entire thing was avoidable in the first place. He

1491
01:14:57,120 --> 01:14:59,880
Speaker 1: pointed to a letter in his biographer when it was alive,

1492
01:15:00,200 --> 01:15:02,720
Speaker 1: to a note from Joseph Stalin in nineteen fifty two

1493
01:15:03,080 --> 01:15:05,640
Speaker 1: which invited the then president of the United States to

1494
01:15:05,840 --> 01:15:08,960
Speaker 1: hold talks over the shape of post World War II Europe.

1495
01:15:09,280 --> 01:15:12,479
Speaker 1: It could have been another Potsdam conference, but the offer

1496
01:15:12,680 --> 01:15:15,679
Speaker 1: was rebuffed internally. In Kennon's view, that was a mistake.

1497
01:15:15,920 --> 01:15:18,559
Speaker 1: Why because he thought the United States could have avoided

1498
01:15:18,600 --> 01:15:21,360
Speaker 1: a lot of heartache and nuclear missile stick cares if

1499
01:15:21,400 --> 01:15:25,920
Speaker 1: it engaged in quote negotiation, especially a real negotiation. At

1500
01:15:26,000 --> 01:15:30,360
Speaker 1: the time, Kennon's biographer Frank Costeliaga writes of the takeaway quote,

1501
01:15:30,479 --> 01:15:33,120
Speaker 1: Kennon's lesson for us in understanding the Cold War of

1502
01:15:33,160 --> 01:15:35,680
Speaker 1: the twentieth century and in diffusing the explosive tensions of

1503
01:15:35,720 --> 01:15:39,599
Speaker 1: the twenty first century is that seemingly intractable conflicts may

1504
01:15:39,680 --> 01:15:43,040
Speaker 1: be more susceptible to settlement than it may at first appear.

1505
01:15:43,360 --> 01:15:45,360
Speaker 1: Now we should take no man as gospel, but a

1506
01:15:45,400 --> 01:15:47,400
Speaker 1: more fulsome view of what a great man, throughout his

1507
01:15:47,840 --> 01:15:50,760
Speaker 1: great thinking about our great issues of our time. It's

1508
01:15:50,800 --> 01:15:52,880
Speaker 1: something we should just all consider, we should listen to.

1509
01:15:53,280 --> 01:15:55,959
Speaker 1: In my estimation, the debate around Ukraine today is shrouded

1510
01:15:56,000 --> 01:15:58,320
Speaker 1: in a toxic discourse where if you question for a

1511
01:15:58,400 --> 01:16:01,599
Speaker 1: moment American interest over Ukraine and interest, you're somehow branded

1512
01:16:01,640 --> 01:16:05,120
Speaker 1: as a putent puppet. What Kennon always understood and wrote

1513
01:16:05,160 --> 01:16:09,400
Speaker 1: from was a reality. Russia exists, it will remain the

1514
01:16:09,479 --> 01:16:13,000
Speaker 1: colossus in the region, likely for centuries, even though it

1515
01:16:13,120 --> 01:16:16,599
Speaker 1: is economically and socially backward. That is and has always

1516
01:16:16,720 --> 01:16:20,480
Speaker 1: been the case in Russia. But it doesn't erase geopolitical

1517
01:16:20,560 --> 01:16:24,200
Speaker 1: realities of power. Fundamentally, the debate goes to a very

1518
01:16:24,280 --> 01:16:27,160
Speaker 1: deep level. Should we engage with the world as it is,

1519
01:16:27,720 --> 01:16:30,920
Speaker 1: or ignore risk to pursue what we want. A lot

1520
01:16:31,000 --> 01:16:34,360
Speaker 1: of people throughout history pursue the latter strategy when they

1521
01:16:34,439 --> 01:16:37,800
Speaker 1: forget the reminders of what that risk actually looks like.

1522
01:16:38,160 --> 01:16:40,240
Speaker 1: In my opinion, we would all be better off if

1523
01:16:40,280 --> 01:16:41,840
Speaker 1: we just thought about the man for a little bit,

1524
01:16:42,240 --> 01:16:44,840
Speaker 1: just like the people who eventually defeated the Soviet Union did.

1525
01:16:45,000 --> 01:16:47,920
Speaker 1: They found his advice very valuable, And I thought the

1526
01:16:47,960 --> 01:16:50,840
Speaker 1: new biography is fantastic and a lot of the stuff

1527
01:16:51,000 --> 01:16:52,479
Speaker 1: I was reading about it And if you want to

1528
01:16:52,479 --> 01:16:56,040
Speaker 1: hear my reaction to Sagre's monologue, become a premium subscriber

1529
01:16:56,120 --> 01:17:01,479
Speaker 1: today at Breakingpoints dot com. Crystal, what are you taking

1530
01:17:01,479 --> 01:17:04,280
Speaker 1: to look at? Well, guys, the latest Mister Beast video

1531
01:17:04,400 --> 01:17:06,639
Speaker 1: dropped and it's kind of beautiful and it's also honestly

1532
01:17:06,720 --> 01:17:08,639
Speaker 1: kind of brutal. And the video you watch as Mister

1533
01:17:08,680 --> 01:17:11,000
Speaker 1: Beasts his real name is Jimmy, pays for one thousand

1534
01:17:11,120 --> 01:17:14,679
Speaker 1: people to undergo a simple surgery to cure them a blindness.

1535
01:17:15,000 --> 01:17:17,439
Speaker 1: As you watch, you see a father able to clearly

1536
01:17:17,560 --> 01:17:19,559
Speaker 1: view his son's face for the first time in years.

1537
01:17:19,600 --> 01:17:21,880
Speaker 1: You see a young man who's able to drive for

1538
01:17:21,960 --> 01:17:24,920
Speaker 1: the first time in his life. You see providers able

1539
01:17:24,960 --> 01:17:26,479
Speaker 1: to go back to work, you see a mother in

1540
01:17:26,600 --> 01:17:30,519
Speaker 1: tears at having her life instantly transformed by a generous stranger.

1541
01:17:30,840 --> 01:17:33,040
Speaker 1: And because it's mister Beast, he also randomly through in

1542
01:17:33,080 --> 01:17:35,679
Speaker 1: a few ten thousand dollars giveaways, even a fifty thousand

1543
01:17:35,680 --> 01:17:37,800
Speaker 1: dollars giveaway on top of all of it, so you

1544
01:17:37,840 --> 01:17:40,839
Speaker 1: get to watch the unadulterated joy of people having crushing

1545
01:17:40,920 --> 01:17:44,720
Speaker 1: financial stress lifted off their shoulders in an instant. Now,

1546
01:17:44,760 --> 01:17:46,519
Speaker 1: for those of you who aren't familiar with mister Beast,

1547
01:17:46,560 --> 01:17:49,080
Speaker 1: he's got one hundred and thirty million subscribers on YouTube.

1548
01:17:49,120 --> 01:17:50,960
Speaker 1: He is the number one YouTuber in the entire world,

1549
01:17:51,240 --> 01:17:53,439
Speaker 1: and this type of random act of charity is kind

1550
01:17:53,439 --> 01:17:55,439
Speaker 1: of par for the course for his content. He's famous

1551
01:17:55,479 --> 01:17:58,720
Speaker 1: in part for those random cash giveaways. So anyway, that's

1552
01:17:58,760 --> 01:18:01,320
Speaker 1: mister Beast. But this late, this video has actually led

1553
01:18:01,360 --> 01:18:05,160
Speaker 1: to some backlash. You're probably thinking, what the hell the

1554
01:18:05,240 --> 01:18:07,640
Speaker 1: man cured blindness for a thousand people who, without him

1555
01:18:07,640 --> 01:18:10,519
Speaker 1: would still be suffering from visual impairment. How in God's

1556
01:18:10,600 --> 01:18:13,640
Speaker 1: name can that possibly be controversial? Well, here with some

1557
01:18:13,720 --> 01:18:16,560
Speaker 1: of the online discourse curtsy of distractify to give you

1558
01:18:16,600 --> 01:18:19,120
Speaker 1: a little bit of flavor of what people were saying. Quote,

1559
01:18:19,200 --> 01:18:21,760
Speaker 1: if mister Beast truly wanted to do something good and

1560
01:18:21,840 --> 01:18:24,840
Speaker 1: truly cares about disabled people, he would not monetize their

1561
01:18:24,840 --> 01:18:27,200
Speaker 1: suffering and make them tap dance on video just so

1562
01:18:27,280 --> 01:18:29,680
Speaker 1: he can slap it up on YouTube. I'm tired of

1563
01:18:29,760 --> 01:18:33,040
Speaker 1: having to perform gratitude for wealthy people just to stay alive.

1564
01:18:33,640 --> 01:18:37,040
Speaker 1: Others went even further. This person tweeted, there is something

1565
01:18:37,200 --> 01:18:40,720
Speaker 1: so demonic about this and I can't even articulate what

1566
01:18:40,880 --> 01:18:43,599
Speaker 1: it is, and they've got screenshots from the video. Sticking

1567
01:18:43,680 --> 01:18:46,640
Speaker 1: with the satanic theme here, this individual really went all in,

1568
01:18:46,800 --> 01:18:51,040
Speaker 1: tweeting he is literally the anti Christ. He's performing our

1569
01:18:51,080 --> 01:18:54,040
Speaker 1: society's equivalent of miracles through these excessive acts of faux

1570
01:18:54,120 --> 01:18:57,560
Speaker 1: generosity and is garnering everyone's undivided love and admiration, and

1571
01:18:57,640 --> 01:19:01,040
Speaker 1: doing so, he will start subverting christ teachings next and

1572
01:19:01,120 --> 01:19:06,360
Speaker 1: preaching selfish action. Mister Beast apparently literally causing that in

1573
01:19:06,479 --> 01:19:10,000
Speaker 1: times or something. Now, all of this is clearly pretty unhinged,

1574
01:19:10,160 --> 01:19:13,439
Speaker 1: not because their rage is unjustified, but because it is

1575
01:19:13,560 --> 01:19:16,679
Speaker 1: wildly misplaced. Mister Beasts did not create a situation where

1576
01:19:16,680 --> 01:19:19,480
Speaker 1: one hundred million people around the world have curable blindness

1577
01:19:19,720 --> 01:19:23,240
Speaker 1: which could be fixed with this simple ten minute surgery.

1578
01:19:23,680 --> 01:19:27,120
Speaker 1: In America, Mister Beasts did not architect the disgusting for

1579
01:19:27,320 --> 01:19:29,599
Speaker 1: profit healthcare system that allows people in the richest country

1580
01:19:29,600 --> 01:19:32,000
Speaker 1: in the world to go without basic health care, but

1581
01:19:32,120 --> 01:19:35,960
Speaker 1: the Mister Beasts video it does definitely expose a grotesque

1582
01:19:36,040 --> 01:19:38,519
Speaker 1: failing in our system. Here. It reminds me of the

1583
01:19:38,600 --> 01:19:40,960
Speaker 1: meme about how all those heartwarming local news stories just

1584
01:19:41,080 --> 01:19:44,760
Speaker 1: basically illustrate some truly dystopian element of our society. Like

1585
01:19:44,840 --> 01:19:49,200
Speaker 1: here's a few examples heartwarming coworkers donate six days personal

1586
01:19:49,240 --> 01:19:52,320
Speaker 1: time off for nurse who can't work while battling leukemia,

1587
01:19:53,000 --> 01:19:55,360
Speaker 1: or there's this one. I hope I make it seven

1588
01:19:55,439 --> 01:19:58,920
Speaker 1: year old Alabama girls selling lemonade to fund her own

1589
01:19:59,320 --> 01:20:02,559
Speaker 1: brain surgery, or getting closer to the Mister Beasts dynamic

1590
01:20:02,760 --> 01:20:05,320
Speaker 1: Brighton teacher who went above and beyond for students wins

1591
01:20:05,360 --> 01:20:07,960
Speaker 1: a year of rent payments on the Ellen Degenerous Show.

1592
01:20:08,280 --> 01:20:10,120
Speaker 1: That is nice of Ellen. I'm glad she did it,

1593
01:20:10,320 --> 01:20:12,960
Speaker 1: But why the hell should this or any teacher have

1594
01:20:13,080 --> 01:20:15,360
Speaker 1: to rely on the kindness of a TV celebrity to

1595
01:20:15,439 --> 01:20:18,920
Speaker 1: be able to afford their damn rent. The bottom line is,

1596
01:20:19,280 --> 01:20:22,639
Speaker 1: mister Beast's blindness video should not exist. It shouldn't be necessary.

1597
01:20:22,800 --> 01:20:24,599
Speaker 1: And if you feel that way, by the way, mister Beast,

1598
01:20:24,680 --> 01:20:27,280
Speaker 1: he kind of agrees with you. He tweeted, I don't

1599
01:20:27,360 --> 01:20:30,759
Speaker 1: understand why curable blindness is a thing. Why don't government

1600
01:20:30,840 --> 01:20:33,439
Speaker 1: step in and help? Even if you're thinking purely from

1601
01:20:33,479 --> 01:20:35,800
Speaker 1: a financial standpoint, it's hard to see how they don't

1602
01:20:35,920 --> 01:20:39,400
Speaker 1: ROI return on investment on taxes from people being able

1603
01:20:39,479 --> 01:20:42,280
Speaker 1: to work again. And his point is a completely reasonable one.

1604
01:20:42,720 --> 01:20:45,400
Speaker 1: If the US government was guided by care and concern

1605
01:20:45,479 --> 01:20:49,480
Speaker 1: for its citizens and a pragmatic interest in human capital investment,

1606
01:20:49,920 --> 01:20:52,680
Speaker 1: his logic would make perfect sense. Why wouldn't you pay

1607
01:20:52,720 --> 01:20:55,759
Speaker 1: for a relatively inexpensive surgery to not just ease suffering,

1608
01:20:55,840 --> 01:20:58,320
Speaker 1: but gain tax revenue from a more productive workforce if

1609
01:20:58,360 --> 01:21:00,800
Speaker 1: that's the thing you care about. But he's missing, though,

1610
01:21:00,960 --> 01:21:03,280
Speaker 1: is that it's not the government's bottom line that matters

1611
01:21:03,479 --> 01:21:05,960
Speaker 1: when it comes to the health industry. What governments policy

1612
01:21:06,080 --> 01:21:09,559
Speaker 1: are the profit margins of the entire health industrial complex,

1613
01:21:09,800 --> 01:21:13,200
Speaker 1: which spends millions to make sure that our disgusting profits

1614
01:21:13,240 --> 01:21:16,439
Speaker 1: over people's system stays in place for all eternity. You

1615
01:21:16,479 --> 01:21:19,920
Speaker 1: want to talk about return on investment. We spend more

1616
01:21:20,200 --> 01:21:23,680
Speaker 1: than any other nation in the world on healthcare, and

1617
01:21:23,760 --> 01:21:27,280
Speaker 1: yet we get worse results than any other developed nation.

1618
01:21:27,680 --> 01:21:30,680
Speaker 1: It's disgusting. It should be criminal. All these pigs in

1619
01:21:30,720 --> 01:21:33,040
Speaker 1: the healthcare industry want to feed at the trough, so

1620
01:21:33,160 --> 01:21:35,280
Speaker 1: they will fight with everything they have to block the

1621
01:21:35,400 --> 01:21:39,200
Speaker 1: obvious solution, which is universal healthcare. It's okay to feel

1622
01:21:39,240 --> 01:21:41,720
Speaker 1: happy for the lucky one thousand who can now see

1623
01:21:41,800 --> 01:21:44,640
Speaker 1: clearly thanks to the generosity and the business model of

1624
01:21:44,720 --> 01:21:48,120
Speaker 1: a YouTuber, and it's okay to feel rage. You should

1625
01:21:48,200 --> 01:21:51,920
Speaker 1: feel rage at a system that puts profits over people.

1626
01:21:52,520 --> 01:21:55,280
Speaker 1: Mister B's most popular video ever. It was actually a

1627
01:21:55,360 --> 01:21:57,479
Speaker 1: takeoff on the Smashed Netflix series. I don't know if

1628
01:21:57,520 --> 01:21:59,400
Speaker 1: you guys watched the series or his video on it,

1629
01:21:59,479 --> 01:22:01,680
Speaker 1: but it was take off on squid Game. In the

1630
01:22:01,720 --> 01:22:05,160
Speaker 1: Netflix show, financially desperate people are pitted against each other

1631
01:22:05,280 --> 01:22:08,000
Speaker 1: in a series of murderous games for cash, to the

1632
01:22:08,080 --> 01:22:10,360
Speaker 1: delight of wealthy elites who were gathered there to watch

1633
01:22:10,400 --> 01:22:13,920
Speaker 1: the whole spectacle. The last person alive wins a cash

1634
01:22:14,000 --> 01:22:16,760
Speaker 1: prize and a ticket out of the financial stress that

1635
01:22:16,920 --> 01:22:20,160
Speaker 1: made their life so miserable, they were willing to risk

1636
01:22:20,280 --> 01:22:23,839
Speaker 1: that life for a chance at the cash and the relief. Effectively,

1637
01:22:23,920 --> 01:22:26,840
Speaker 1: their poverty was so endlessly devastating they'd rather die than

1638
01:22:26,920 --> 01:22:30,400
Speaker 1: continue to live under its crushing weight. Save your rage

1639
01:22:30,640 --> 01:22:33,960
Speaker 1: for the architects and keepers of our American squid game,

1640
01:22:34,439 --> 01:22:36,960
Speaker 1: not the YouTuber who stumbled on a way to help

1641
01:22:37,280 --> 01:22:41,360
Speaker 1: some people within the confines of that system and the

1642
01:22:41,439 --> 01:22:43,880
Speaker 1: online discount course around. This was kind of interesting and

1643
01:22:43,920 --> 01:22:46,639
Speaker 1: if you want to hear my reaction to Crystal's monologue,

1644
01:22:46,640 --> 01:22:53,120
Speaker 1: become a premium subscriber today at Breakingpoints dot com. All right, guys,

1645
01:22:53,200 --> 01:22:55,280
Speaker 1: we'll see you later. As a reminder, we got a

1646
01:22:55,320 --> 01:22:59,000
Speaker 1: show remotely coming in from Austin, Texas on Thursday for

1647
01:22:59,080 --> 01:23:01,479
Speaker 1: our live show prep on Friday. We're excited to see

1648
01:23:01,680 --> 01:23:03,040
Speaker 1: all of you there. Stay tuned for the show. We

1649
01:23:03,120 --> 01:23:06,120
Speaker 1: got a great counterpoints for everybody tomorrow morning. We will

1650
01:23:06,160 --> 01:23:08,080
Speaker 1: see you all later. Love you guys, See you soon.