Moody's downgrades the outlook on the entire US banking system, and warns that there are serious systemic risks to the financial system. Meanwhile, Credit Suisse reports problems with its financial reporting, which could spell trouble for the Swiss bank. Today's show is sponsored by ExpressVPN. Do you like your web history being seen and sold to advertisers? No? Me neither. Get ExpressVPN right now at ExpressVpn.co/getExpressVPN to get a FREE virtual private network (VPN) so you can keep your money safe, secure, and secure. It's free and secure, with no credit card required. Just use the promo code: "ExpressVPN" to receive $5 and contribute $5 to OWLS Lacrosse Lacrosse you download the app. You can get 10% off the first month with discount code: PODCAST10 at checkout. Subscribe to our new podcast, The Macro Guys, wherever you get your news and financial advice. Subscribe and comment to stay up to date with the latest financial and economic news. Use the hashtag on social media to help spread the word about this podcast! and more! Subscribe, comment and subscribe to our newest episode of the Macro Guys Podcast! to be notified when we deconstruct the latest breaking news and provide real-world economic and financial stories from the financial world! If you have a dilemma, we can help you find a solution to your problem? or are in need of a solution? Let us know what we can do to help you solve it! We'll be helping you solve your problem, not just another day on our website or problem or situation we'll help you figure it out! or ask a question on our experts can help us solve it out on the next day. Thanks for listening to the world's biggest financial crisis, problem solving, problem or problem solving and we'll send you out to you get a real world crisis, right here on the other side of the world? Thank you for listening? -- The next episode is coming soon! -- Eternally grateful -- Good morning, Timestamps: 5: 5:00 - 6:30 - 7:00 8:15 - How do you like it? 9:40 - What's a good day? 11:30 12:15 13:00s - Is it a good one? 15:30s - How bad? 16:40s - Does it really matter?
00:00:46.000The firm, part of the big three rating services, said Monday it was making the move in light of key bank failures that prompted regulators to step in on Sunday with a dramatic rescue plan for depositors and other institutions impacted by the crisis.
00:00:57.000Moody's said in a report, quote, we've changed to negative from stable our outlook on the U.S.
00:01:01.000banking system to reflect the rapid deterioration in the operating environment following deposit runs at Silicon Valley Bank, Silvergate Bank and Signature Bank and the failures of SVP and SNY.
00:01:10.000That move followed action late on Monday when Moody's warned it either was downgrading or placing on review for downgrade seven individual institutions.
00:01:17.000Now, that is important because it could impact credit ratings and borrowing costs for the entire sector, which would mean that it would be harder for these banks to come up with liquidity.
00:01:25.000Which would be a real problem because if the banks can't come up with liquidity, then how exactly do they plan to bail out their depositors if the depositors all come calling at the same time as the economy sinks into the mire?
00:01:36.000The Federal Reserve has now established a facility to ensure that institutions hit with liquidity problems would have access to cash.
00:01:41.000But as we'll discuss in a moment, this actually creates a massive problem for the Federal Reserve, which is simultaneously injecting huge amounts of money into the economy or promising to do so, like trillions more dollars.
00:01:51.000At the same time, it is supposedly attempting to quash inflation.
00:01:55.000Meanwhile, Credit Suisse has now reported that it has material weaknesses in its financial reporting, which is always a great sign.
00:02:01.000Credit Suisse said it had found material weaknesses in that financial reporting over the past two years because of ineffective internal controls, according to The Wall Street Journal, the latest setback in its efforts to move past a series of costly blunders.
00:02:11.000The bank's management concluded that the controls were not effective, Credit Suisse said in its annual report.
00:02:15.000The weaknesses meant controls around 2021 financial reporting also were not effective.
00:02:20.000Despite the lapses, Credit Suisse said its financial statements fairly present in all material respects, the group's consolidated financial condition.
00:02:27.000But Credit Suisse had to delay its annual report last week because of last minute questions from the SEC around earlier cash flow statements, which the bank had revised in its 2021 annual report for both 2019 and 2020.
00:02:39.000The heads of the bank said that their results for 2022 and the previous years were unaffected by the finding.
00:02:46.000The bank stock fell about 4% early on Tuesday before recovering to trade flat, having hit a new low Monday on concerns about its financial prospects.
00:02:54.000Credit Suisse had raised $4 billion in new shares last year.
00:02:57.000It's cutting 9,000 jobs and spinning off its investment bank, and that has not stabilized the situation.
00:03:01.000So Credit Suisse could be in serious trouble, according to the UK Daily Mail.
00:03:06.000Robert Kiyosaki has warned that the problem is the bond market and that Credit Suisse is the most vulnerable.
00:03:12.000Because any investment firm that is heavily invested in bonds that are about two years old is in serious trouble.
00:03:17.000That's what we found out from Silicon Valley Bank.
00:03:19.000Just to quickly review, Silicon Valley Bank had a giant influx of depositor cash.
00:03:23.000They didn't know what to do with it, so they spent it all on government bonds, figuring, okay, that's really stable.
00:03:29.000It's pretty stable if you hold it until maturity.
00:03:31.000If you have to cash out those bonds early, meaning you have to sell them on the open market, and meanwhile, the interest rates have increased, the price that you paid for the bonds is now higher than the price at which you can sell the bonds, and you start to bleed money, which is exactly what happened with SVP.
00:03:44.000Well, the problem is there are a huge number of major financial institutions that did the same thing as SVP, to a more or less extent.
00:03:52.000And they did so because, as always, there is a sort of groupthink that does take place in financial circles as it does in political circles, a groupthink that suggests that when A carousel is going around and around and around that will just keep continuing to turn.
00:04:07.000There will be no point at which the ride stops.
00:04:11.000The game of musical chairs never ends until the very moment that it ends.
00:04:14.000And then it turns out that somebody doesn't have a chair.
00:04:16.000On Tuesday morning, Credit Suisse published its annual report that revealed an $8 billion loss for 2022.
00:04:20.000The bank had been due to publish the report last Thursday.
00:04:23.000It was sent back to review its books by the SEC.
00:04:27.000Other Wall Street experts right now are urging caution and calmness, but again, I'm finding that a little bit hard to buy given that a month ago they were all saying that SVB was in good shape.
00:05:10.000There is little to no evidence to suggest that if Dodd-Frank had been on the books in the form that it was in 2018, This would have prevented the collapse of SVP.
00:05:18.000That was a strategic problem with SVB.
00:05:24.000It had nothing to do with reporting requirements.
00:05:25.000It really had very little to do with the strictures that were put on mid-sized banks in the earlier version of Dodd-Frank.
00:05:31.000The guy who wrote the bill, Barney Frank, and who happened to be on the board of Signature Bank, which is the other bank that went bankrupt.
00:05:38.000Even he was saying, yeah, now if my bill had been in place, it wouldn't have stopped anything at all.
00:05:42.000And as always, whenever the government creates a failure, their next move is to blame the general markets, to blame the capitalist free enterprise markets, even though it was they who created the incentive structure in the first place, and then step in with more regulatory power.
00:06:07.000It's a beautiful way for corporatism, which is the merger between government and big business, to continue its predations against the free market, which is really what's happening right here.
00:06:16.000We'll get to more on that in just one second.
00:06:18.000First, I need to talk to you about Daily Wire's most trusted privacy partner and our premier sponsor of this show, ExpressVPN.
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00:06:29.000Why would you trust them to keep your data safe?
00:06:31.000Especially when they've made pretty clear that they are giving you free services because they wish to monetize your data.
00:06:35.000Why would you trust them when it comes to whether they're going to protect you from government that is requesting your data from them, for example?
00:06:44.000Your ISP knows every single website you visit.
00:06:45.000They can sell that information to ad companies and the tech giants who use it to target you.
00:06:50.000And they can hand it over to the government.
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00:06:58.000This is the reason I use ExpressVPN on all of my devices.
00:07:00.000We're talking phones, laptops, Wi-Fi routers, all of it.
00:07:42.000And then it wasn't the attendant interest rate increases that had to come because inflation was a natural consequence of spending that much money.
00:07:48.000And then people bet wrong on the federal government.
00:07:54.000If you can give them more power, that's probably better.
00:07:55.000The Federal Reserve is now rethinking a number of its own rules related to mid-sized banks following the collapse of two lenders, according to the Wall Street Journal, potentially extending restrictions that currently apply only to the biggest Wall Street firms.
00:08:05.000A raft of tougher capital and liquidity requirements are under review, as well as steps to beef up annual stress tests that assess banks' ability to weather a hypothetical recession, according to a person familiar with the latest thinking among U.S.
00:09:02.000But the problem is that if you have to go liquid immediately and you have to liquidate all your assets, well, then you're going to have to realize that loss.
00:09:09.000And that's precisely what happened with SVB.
00:09:11.000They were not marking down their assets to market prices because they weren't intending on selling those assets.
00:09:16.000And then everybody all at once decided to go get their money from the bank and they had to fill in that gap.
00:09:21.000So the notion that that's going to be fixed by the Federal Reserve doing more oversight is really quite ridiculous.
00:09:26.000The bigger problem right now for the Federal Reserve is the simple fact that they are now at war with themselves.
00:09:32.000So as Bloomberg is pointing out, the Federal Reserve may need to end its quantitative tightening program early to preserve the amount of bank reserves in the financial system while also maintaining its hawkish signaling on interest rates, according to Citigroup.
00:09:43.000So right now, the inflation rate, as we'll discuss in a second, was like 6%.
00:09:48.000And it came out that it's at 6%, but the truth is that it's actually, the inflation rate is actually increasing in certain areas of the economy.
00:09:56.000The inflation is still really bad systemically in the economy, especially because when you look at the year on year inflation rate, which is what that 6% is, you have to add that on top of what the inflation rate was like a year before.
00:10:08.000And a year ago, before that, it was like a 7 or 8% interest rate.
00:10:13.000So, so if you look over the course of the last couple of years, you're looking at double digit inflation increases.
00:10:18.000I mean, but one of the things you have to do in order to fight inflation is to suck money out of the economy, right?
00:10:23.000That is why you increase the interest rates.
00:10:25.000You make it harder to achieve liquidity.
00:10:27.000Well, what exactly would you call it when you announce to the world that you are going to set up a fund, a giant slush fund to deposit for depositor backstops?
00:10:36.000When you are talking about in the banks across the United States, there are unsecured deposits amounting to like seven or eight trillion dollars, like trillions and trillions of dollars in unsecured Investitures into deposits into the banks.
00:10:54.000Any deposit, technically, that you put in your bank that is above $250,000 is not insured, is not covered by the FDIC.
00:11:02.000There are trillions of dollars worth of investments there.
00:11:05.000And now the federal government has announced for SVP, and you would imagine it now applies broadly, that they're going to fill in every deposit everywhere, which is, in fact, a form of quantitative easing.
00:11:13.000It is a form of the Federal Reserve just blowing money into the system, obviously.
00:11:18.000Because now, all the risk reward is gone.
00:11:20.000It doesn't matter what the risk is, you are still going to get your money out.
00:11:23.000So you may as well put your money with the people who are promising the highest return.
00:11:26.000That's not according to me, that's according to Citigroup.
00:11:28.000As Citigroup sees it, the bank's new bank term funding program, introduced over the weekend after the collapse of Silicon Valley Bank, will create additional reserves in the financial system to avert funding stress.
00:11:37.000Essentially, that risk is being seen as a form of quantitative easing.
00:11:41.000Quantitative easing was the fancy name for inflation.
00:11:43.000We're just injecting money into the economy.
00:11:45.000At a time when the Fed is engaged in a major effort to do just the opposite.
00:11:47.000Since mid-2022, it's been unwinding its massive pile of treasury and mortgage-backed securities, aiming to ultimately remove trillions of dollars of excess liquidity from the financial system.
00:11:57.000The new facility is quantitative easing in another name.
00:12:00.000Assets will grow on the Fed balance sheet, which will increase reserves, said Citi strategist Jaboz Mafei, Jason Williams, and Alejandro Vazquez Plata.
00:12:07.000Although technically they're not buying securities, reserves will grow, which is obviously true.
00:12:11.000This is a form of quantitative easing.
00:12:13.000They're injecting liquidity into the economy at a time when they're trying to also remove liquidity from the economy.
00:12:18.000This is the problem that you create for yourself when you create an inflationary problem.
00:12:22.000And that inflationary problem has real consequences on how people are living, how people are spending.
00:12:28.000And then in an attempt to jack down the inflationary, jack up the interest rates, that has a bunch of side effects.
00:12:34.000One, older bonds become worth a lot less money.
00:12:38.000Two, you're going to actually increase the interest rate on the American national debt, which creates significantly more problems in terms of repaying that national debt over You've made the debt significantly worse.
00:12:47.000Debt repayment gets a lot worse because now you're paying that debt at an interest rate of 6% or 7% as opposed to an interest rate of, say, 2% or 0%.
00:12:56.000And then you have a third problem, which is you are injecting money.
00:12:59.000This new program, which is saying we're going to backstop every deposit in the United States, means that you have created a slush fund of liquidity at a time when you're trying to pull liquidity out of the market.
00:13:07.000So the Fed is now stuck between a rock and a hard place.
00:13:10.000As Bloomberg says, as part of its move to combat soaring inflation and withdraw the unprecedented policy accommodation unleashed amid the pandemic, the Fed ramped up its so-called quantitative tightening to full speed in September.
00:13:20.000But for the Fed, an overarching concern is that it avoids pulling back too far on liquidity in the financial system as it tightens policy, creating strains in the markets where banks fund themselves.
00:13:29.000Bank deposits have fallen since the Fed started its hiking cycle a year ago, spurring customers to shift cash to higher yielding instruments, which has forced institutions to increase rates on offerings like certificates of deposit, more in line with Treasury bills and money markets to stem the exodus.
00:13:41.000So they've got quantitative tightening at the same time that they're pursuing a form of quantitative easing to prevent these banks from melting down.
00:13:47.000Well, none of that is going to work out particularly well.
00:13:51.000None of that is going to solve the problem.
00:13:54.000Well, speaking of problems that need to be solved, okay, let's say that some emergency arises and you can't actually get out to the pharmacy.
00:14:08.000You should have headed over to Jace Medical.
00:14:09.000Jace Medical makes sure that you have the resource that you need in your own home ahead of time in case, God forbid, supply chains break down.
00:14:17.000They're not just making sure that you have things like the JACE case, which is like the five most common antibiotics that would be necessary in your home in case of some sort of emergency.
00:14:25.000Right now, they're also offering my audience a free e-book that every family needs in their emergency preparedness kit.
00:14:30.000The e-book is maybe a five-minute read.
00:14:31.000I want you to download it and save it so you have it accessible when you need it.
00:14:34.000The guide provides valuable information regarding emergency wound care, proper first aid, and how to safely use antibiotics when necessary.
00:15:02.000Now again, the Federal Reserve is trying to figure out a way forward here.
00:15:06.000It's a problem that they created themselves.
00:15:08.000The new inflation report came out yesterday, and what it found is that the consumer price index rose 6% in February from a year earlier.
00:15:14.000That is down from the 6.4% gain the prior month.
00:15:17.000But monthly data showed price pressures persisted in many corners of the economy.
00:15:20.000Core prices increased by a seasonally adjusted 0.5% in February.
00:15:24.000That is the largest monthly gain in five months.
00:15:27.000Shelter costs rose 0.8% over the month, matching the largest monthly gain since the 1980s.
00:15:33.000So while there are While there are indicators that inflation could be kind of slowing in certain areas of the economy, the answer is not really.
00:15:42.000So the question is, what exactly is the Fed going to do?
00:15:45.000So people have been suggesting the Fed has been easing its program of interest rate increases, which, again, they're probably going to have to do that anyway if they don't wish to destroy many more banks.
00:15:55.000I mean, if all these banks have bought bonds and those bonds are now essentially worthless because the banks because the Fed keeps raising the interest rates.
00:16:01.000Well, at a certain point, They are going to either have to prevent those banks from collapsing by refusing to raise the interest rates, which means inflation becomes persistent, or they have to continue to raise the interest rates.
00:16:10.000And if a few banks go bust, then a few banks go bust.
00:16:12.000That is the choice that they have right now.
00:16:15.000Also, they've completely blown out their own credibility.
00:16:17.000First, they created the inflationary problem, saying it wasn't going to be persistent.
00:16:30.000And now they may have to reverse that in 2.5.
00:16:32.000So it's a mess out there and everybody knows that it is a mess.
00:16:35.000So in other words, they think that in order to avoid bank collapse, they're going to slow the interest rate increases.
00:16:39.000take the risk that monetary policy actions could work at cross purposes with financial stability policy by worsening banks balance sheet problems and undermining confidence. So in other words, they think that in order to avoid bank collapse, they're going to slow the interest rate increases. If they do that inflation is going to remain really, really high.
00:16:57.000According to the Wall Street Journal, prices rose 5.2% over the last three months and the annualized rate has run well above economists' expectations and further highlights the tension between the Fed's financial stability and price stability goals.
00:17:08.000This is why the Federal Reserve should not be in charge of the American economy to the extent that it is.
00:17:13.000As the Wall Street Journal points out, the real problem here is that as long as central bank policy is bad, if monetary policy is bad, assets that you thought were secure are simply not secure.
00:17:25.000And so for all those who are saying that the crisis is over, I just have a question.
00:18:08.000After having supposedly solved our fiscal problems in the middle of questions about whether Credit Suisse is about to go under, the President of the United States went out there and started muttering haphazardly about passing his $7 trillion budget.
00:18:20.000Last week I laid out on my budget that we invest more in safer communities and expand access to mental health services for those affected by gun violence.
00:18:30.000Congressional Republicans should pass my budget instead of calling for cuts in these services or defunding the police or abolishing the FBI as we hear from our Maggard Republicans.
00:19:04.000Now, the bigger problem, okay, all of this puts aside a much bigger problem for capitalism and free markets generally, which is, I don't know how many times we can create this moral hazard.
00:19:15.000It's not even a moral hazard anymore, it's just a certainty.
00:19:17.000It is a certainty that if a bank goes under, the federal government is going to find a way to bail out the bank and to quote-unquote decrease risk.
00:19:23.000And when they decrease risk, you have to understand, when the federal government decreases risk to a certain bank failing, they're not decreasing the risk, they're redistributing the risk.
00:19:34.000It existed in a particular institution that had made bad moves.
00:19:37.000And there were people who had put their money in those institutions because those institutions had been lying and claiming high rates of return.
00:19:44.000And instead of that risk now existing where it should be with the people who made the decisions, now the risk is going to be redistributed across the entire economy.
00:19:51.000Because again, the idea is that if we don't redistribute the risk over the entire economy, then the institution fails.
00:19:55.000And if that institution fails, there will be bleed over to other institutions.
00:19:58.000Now, nobody's ever tried the counter positive.
00:20:54.000If I can't, if it turns out I can't, you know, all that happens is I lose my job and they all get paid off by the federal government anyway.
00:21:00.000So I'm playing with house money, basically.
00:21:05.000And that's going to make the economy a lot more risky, believe it or not, because there will come a point in which the federal government does not have the ability to simply fill in every gap.
00:21:13.000Beyond which, even if the federal government does fill in the gaps, obviously there's only a couple of ways of doing that, and one of them is inflation and quantitative easing.
00:21:21.000Well, if all of this is enough to make you lose some sleep, you should recognize that one way to actually gain sleep is to have a good set of sheets on your bed.
00:21:28.000You don't think about your sheets too much, right?
00:21:29.000Very often you're just like, okay, whatever's in the closet, you throw it on the bed.
00:21:33.000And then you find yourself in the middle of the night and the sheets have pulled off the mattress and you're sweating and it's really uncomfortable.
00:22:40.000Okay, so what are these perverse incentives?
00:22:41.000Well, you're seeing more and more major investors point them out.
00:22:45.000Carl Icahn, who of course is a major investor worth some more between $17 and $25 billion.
00:22:51.000He pointed out on CNBC yesterday that the economic system is breaking down because of all of these perverse incentives.
00:22:59.000I want your reaction to what Citadel's Ken Griffin told the FT about this very issue in which he suggested that the government should not have bailed out all of the depositors.
00:23:47.000Kevin O'Leary, who you'll remember from Shark Tank, he was asked about the fact that he actually had money invested in Silicon Valley Bank, and unlike many others, he was saying they shouldn't have bailed out Silicon Valley Bank.
00:23:55.000He says what this is doing is bailing out idiot bank managers, which is true.
00:24:00.000At the end of the day, you can't protect yourself against idiot management in any sector, including banking.
00:24:04.000There's always a black swan swimming around in the lake somewhere, and you found it in Silicon Valley Bank.
00:24:10.000But here's where we're at this morning with this new policy.
00:24:14.000I don't care what bank we're talking about anymore.
00:24:17.000You as a depositor have no risk whatsoever.
00:24:22.000So what stops the idiot bank manager going forward from doing anything they want within the regulatory environment?
00:24:29.000We shouldn't have done this and now we have the moral jeopardy ahead of us of idiot bank managers everywhere doing crazy behavior.
00:25:00.000The game is you backstop everything, people take outside stupid risks, the risks come home to roost, they're redistributed over the entire economy, and the federal government then blames capitalism.
00:25:09.000By the way, Silicon Valley Bank was taking stupid risks with money.
00:25:12.000Silicon Valley Bank apparently donated $73 million to the BLM movement and other social justice-related causes, according to The Federalist.
00:25:22.000Apparently they pledged in the summer of 2020, in the middle of the George Floyd debacle, to increase their commitment to diversity, equity, and inclusion in the workplace.
00:25:31.000And they also pledged to donate tens of millions of dollars to left-wing social justice causes.
00:25:36.000Now, is that what caused their bankruptcy?
00:25:37.000No, it just means that they were loose with their cash.
00:25:39.000And they were loose with their cash because money was easy.
00:25:44.000It's fun to watch Senate Democrats now going at each other over all of this.
00:25:47.000According to Politico, Five years to the day after Senate Democrats clashed bitterly over Donald Trump's bank deregulation, the failure of two banks is reigniting the old tension.
00:25:56.000President Biden on Monday criticized the former president's loosening of bank regulations under Dodd-Frank.
00:26:00.000Biden didn't mention his own party played a significant role.
00:26:04.000Elizabeth Warren, of course, was blaming other Democrats for having loosened the regulations.
00:26:08.000Senator Michael Bennett of Colorado said, no, I voted for the bill because it was bipartisan compromise.
00:26:29.000Which is probably why, according to The Intercept on Monday, California Governor Gavin Newsom praised the Biden administration's decision to bail out Silicon Valley Bank's clients after the bank was taken over by the FDIC.
00:26:40.000Newsom said that the White House, quote, acted swiftly and decisively to protect the American economy and strengthen public confidence in our banking system.
00:26:47.000Newsom did not mention that that act also protected his own companies if they held over $250,000 in deposits.
00:26:54.000There are three separate wineries owned by Newsom for clients of SVBs.
00:26:58.000So, oops, that's a little awkward for a politician.
00:27:02.000Now listen, all of this just spells more economic chaos in the future, either through economic stagnation, or through bank meltdowns, or through continued inflation, or through a combo of kind of all three.
00:27:14.000Which means that it's time for Joe Biden to misdirect.
00:27:15.000That dude has got to misdirect because if you are looking at the state of the economy and you are fearing a meltdown and banks are starting to bust, then you got to do something.
00:27:23.000So Joe Biden is going back to that old stalwart gun control.
00:27:35.000So on Tuesday, he signed an executive order he said was aimed at reducing gun violence, including changes that could increase the number of gun buyers subjected to background checks.
00:27:44.000He said his executive actions were designed to move the U.S.
00:27:46.000as close to universal background checks as possible.
00:27:49.000Under the new order, the Justice Department must clarify the definition of being engaged in the business of selling firearms.
00:27:54.000Currently, a federal background check applies if you are a business that sells firearms on the regular.
00:27:59.000If, however, you are not engaged in the business, right, you're like a person and you sell a gun to your friend, then a federal background check does not apply by federal law.
00:28:08.000Now, there are certain places in the country where you still have to get a background check.
00:28:11.000California is one of those places, I believe.
00:28:13.000The president is urging the FTC to produce a public report examining how manufacturers market guns.
00:28:18.000He's trying to open up liability for the gun manufacturers.
00:28:20.000Again, is any of this going to stop any level of violence with guns in the United States?
00:28:46.000So here he was yesterday pushing gun control.
00:28:49.000Second thing it does is the executive order ramps up our efforts to hold the gun industry accountable.
00:28:54.000It's the only outfit you can't sue these days.
00:29:00.000So he wants you to be able to sue a gun manufacturer for the gun working.
00:29:05.000That's not how typically product liability lawsuits work.
00:29:09.000This is, again, one of these democratic lies that they tell pretty frequently, which is that gun manufacturers are the only ones who aren't liable for the malfunction of their product.
00:30:39.000You may not have known it, but maybe you were eligible over the course of the past several years for that employee retention credit, so you overpaid your taxes.
00:30:45.000If you could get some of that money back, why wouldn't you go do it right now?
00:31:52.000There's nothing that's discriminating and judgmental in the way that's elevating.
00:31:57.000Because everything you do is instantly, well, it's all loved.
00:32:01.000And it seems to me that there's a tension there between what you might describe as the archetype of feminine love and the archetype of masculine love.
00:32:09.000And feminine love is love for an infant.
00:32:27.000New episodes are coming online every single week.
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00:33:03.000Sign up for your chance to win the one grand.
00:33:05.000Well, as you say, Joe Biden has to distract from what is happening in the economy right now because things are starting to get very, very ugly.
00:33:11.000And again, there are not a lot of options on the table.
00:33:12.000Either the Federal Reserve is going to have to increase inflation or they're going to have to increase the possibility of bank busts and recession and possible depression.
00:33:37.000It was it was a tweet from a it was a letter from a small child.
00:33:40.000And it said, it's so cute because it's all misspelled and there's erasures and all this stuff says, Dear President Biden, I just wanted to tell something not fair to ladies.
00:33:50.000Men are getting more money underlined than girls.
00:34:24.000And writing that letter to the president?
00:34:26.000And Joe Biden, being a cynical elderly gentleman, he tweets out, Charlotte, I couldn't agree more.
00:34:31.000Women lose thousands of dollars each year and hundreds of thousands over a lifetime because of gender and racial wage gaps.
00:34:36.000I'm committed to building an economy where my daughters have the same rights and opportunities as my sons.
00:34:40.000Well, yeah, he should probably build an economy where his daughter is also able to knock up a stripper and then abandon the child and or snort Parmesan cheese off the carpet and be called the smartest person he knows.
00:34:54.000The President of the United States tweeting out a letter from a small child filled with misspellings in order to promote the notion that women are paid less on average than men is... I hate this foreign politics so much.
00:35:17.000They're smart for children and they are stupid for adults because they are children.
00:35:21.000The notion that we should take our political lead from small children who can't spell, right?
00:35:24.000And be like, you need to be fairer to women, Mr. President.
00:35:28.000All children in politics should be treated the way that Dianne Feinstein treated a group of children who came to harass her about environmentalism.
00:35:36.000It's one of the great clips in American history.
00:35:39.000The government is supposed to be for the people and by the people.
00:35:42.000You know what's interesting about this group?
00:36:18.000The economy is in a serious state because of his dramatic mismanagement and because that mismanagement goes directly to his central policy of more spending.
00:36:26.000And so he's got to distract with something.
00:36:27.000So he's come up with gun control and letters from small children.
00:36:31.000Slow clap for this genius, for this broken brain genius.
00:36:34.000Meanwhile, the media, they have decided And that the real story here, you can always tell when there's a real democratic problem because the first headline from the media is conservatives pounce, pounce, woo, they're pouncing like cats, pounce.
00:36:45.000So we have some pouncing headlines from the New York Times here.
00:36:47.000Quote, banks, trains and political finger pointing.
00:36:50.000As two news events, banking turmoil and a train derailment became flashpoints in America's culture wars, conservative presidential hopefuls and media voices Oh, so much pouncing.
00:37:00.000So the rule always in the media is if Democrats botch things beyond all reckoning, and then Republicans notice, then the real story is that Republicans have pounced.
00:37:09.000Now let me just make clear to you, the pouncing is never the story.
00:37:13.000The pouncing is never the story unless there is like an obvious Strategy to avoid a particular thing in favor of this other thing, right?
00:37:21.000Then it's really not about the pouncing so much as it is about the thing that they are ignoring, right?
00:37:27.000So if, for example, there is a situation in which political observers should clearly be paying attention to issue A, and instead of doing that, they pay attention to issue B. The story isn't the pouncing on issue B. The story is they're ignoring issue A. Yeah, but that's not really what's going on here.
00:37:41.000What's going on here is bad things are happening.
00:37:42.000Republicans are noticing, and so the New York Times says that the pouncing has occurred.
00:37:47.000For the second time in two months, news events have revealed how the responses of the two major political parties distinguish their leaders and how the conservative media serves as an echo chamber even for the most improbable arguments.
00:37:56.000Yes, the real problem here is that people on the right are pointing to woke banks.
00:38:01.000Now, listen, I've said on the show, do I think that the wokeness of these particular banks is the reason for their collapse?
00:38:05.000No, I think that their bad decision-making is the reason for their particular collapse.
00:38:09.000But the fact that the New York Times thinks the story is the pouncing is really kind of incredible.
00:38:14.000Meanwhile, speaking of a story where people seem to be ignoring the actual story, I've noticed that everybody on the right side of the aisle who is running for president is now very angry at Ron DeSantis for his answer to Tucker Carlson on Ukraine.
00:38:29.000So, you'll recall that DeSantis suggested that the United States did not have a vital interest in the situation in Ukraine, arguing that it was a territorial dispute between Russia and Ukraine at this point.
00:38:40.000Now, you can make the argument, I think, That what is happening between Russia and Ukraine now has become sort of a territorial dispute, meaning that everybody acknowledges, including the Biden administration, that the chances that Ukraine pushes Russia fully out of the Donbass and Crimea are unlikely, which means that we are now having a dispute over where to draw the lines in Donbass and Crimea.
00:39:00.000It was not a territorial dispute when Russia invaded Ukraine full on and tried to take Kiev.
00:39:05.000When you're talking about places that have been held by Russia since 2014, and when there's a full acknowledgement that there will in fact be a settlement in which a line is drawn that is going to be west of the normal Ukraine-Russia border, and that is going to be north of the Black Sea.
00:39:21.000You're immediately talking about territorial disputes.
00:39:24.000As far as whether it is a vital American national security interest, I think that what DeSantis presumably was trying to avoid was the blowback from saying that it is a vital interest.
00:39:50.000I mean, that sort of stuff happens all the time.
00:39:52.000And so the real answer is that DeSantis was mushing it.
00:39:55.000OK, when you look at the actual answer that DeSantis gave, it was kind of a mush mouth answer, which is not politically stupid, considering that the Republican Party itself is pretty split on these lines.
00:40:03.000Now, what is fascinating is to see the response to DeSantis.
00:40:07.000I think DeSantis' response was significantly less interesting than the response to it.
00:40:10.000So Nikki Haley is going after DeSantis.
00:40:13.000She said, President Trump is right when he says Governor DeSantis is copying him, first in his style, then on entitlement reform, now on Ukraine.
00:40:19.000I have a different style than President Trump, and while I agree with him on most policies, I do not on those.
00:40:22.000Republicans deserve a choice, not an echo.
00:40:24.000So what I first noticed here about Nikki, and again, I like Nikki, I agree with her on a lot of things, but one of the things that I noticed about what Nikki is doing is that Nikki is not attacking Trump.
00:40:35.000So if the idea here is that DeSantis is copying Trump, is the sin the copying?
00:40:40.000If the sin is the position, wouldn't you go after, you know, the titular leader of the Republican Party, the frontrunner by nearly every major primary poll?
00:40:46.000Or are we just going to do the same thing that we did back in 2016?
00:40:51.000We're going to do the same thing we did back in 2016.
00:40:53.000Everybody attempts to avoid hitting Trump, and instead they hit each other.
00:40:57.000So, obviously, listen, if Nikki wanted to attack the isolationist position on Ukraine, Trump is more overtly isolationist on Ukraine than DeSantis is, by a fairly large margin.
00:41:08.000She's attacking DeSantis, because presumably, the political game here is, if you can drive DeSantis down with potential supporters, then she picks up that support, and she's assuming that no one is going to drop off of Trump who's already on Trump.
00:41:19.000Okay, but is she really attacking DeSantis' position?
00:41:23.000Or is she really attacking where DeSantis is in the primaries, right?
00:41:39.000So Chris Christie has been ripping into DeSantis as well.
00:41:44.000Lindsey Graham is now suggesting to those who believe that Russia's unprovoked and barbaric invasion of Ukraine is not a priority for the United States.
00:42:04.000I'm pretty sure that he does not, since he has not called for a full-scale withdrawal of all American support to Ukraine.
00:42:08.000I mean, that's really the question, right?
00:42:10.000That's the question that should be put to all of these people.
00:42:14.000What are you suggesting in terms of actual policy?
00:42:15.000Forget about the vital interest question.
00:42:17.000Should the United States withdraw all financial support from Ukraine?
00:42:22.000Or, how much support should continue to be provided to Ukraine?
00:42:26.000Because my guess is pretty much all of these candidates, up to and including Trump, would say enough support has to be provided to Ukraine to prevent them from losing against Russia, which is basically what Biden is providing right now.
00:42:35.000So all of this seems like a tempest in a teapot to me, to be perfectly honest with you, because nobody's actually taking the hard Lindsey Graham position, which would be, we need to fund Ukraine to the point where they can push Russia back to its own borders, we need to give them whatever they need in order to do that, and that will force Russia to the table.
00:42:48.000Lindsey Graham's like the only person who's articulating that position publicly because nobody else is willing to take that position because they think it's too dangerous.
00:42:54.000And one of the reasons they think it's too dangerous is because the possibility of Russian-American conflict does bear the possibility, however slim, of a nuclear exchange.
00:43:05.000That possibility went up somewhat yesterday when a Russian jet collided with a U.S.
00:43:08.000drone over the Black Sea, according to the Wall Street Journal.
00:43:11.000spy drone over the Black Sea and knocked it out of the sky on Tuesday.
00:43:14.000It was one of the first military confrontations directly between the two nations' forces since the war in Ukraine began more than a year ago.
00:43:21.000and Russia are operating on the margins of the conflict zone.
00:43:23.000Apparently, two Russian Su-27 jet fighters and the U.S.
00:43:27.000MQ-9 surveillance drone, originating from Romania, flew near one another for about 30 minutes in international airspace.
00:43:33.000And in an incident that lasted a matter of seconds, at about 7 a.m., one of the Russian jet fighters flew past the drone, dumped fuel on it, and then pulled away.
00:43:39.000And then the second jet sought to do the same, but instead ended up colliding with the drone.
00:43:43.000The collision knocked off a piece of the MQ-9, and its operators guided it down to the water.
00:45:07.000Its students supported a referendum that polarized the campus and went straight to the heart of Wellesley's identity as a women's college.
00:45:13.000The referendum called for opening admissions to all non-binary and transgender applicants, including trans men.
00:45:20.000Currently, the college allows admission to anyone who lives and consistently identifies as a woman.
00:45:28.000Apparently this means that men who identify as women can go to Wellesley.
00:45:36.000And women who identify as men can go to Wellesley.
00:45:39.000So what we are now acknowledging is that the only people who cannot go to Wellesley are men who identify as men.
00:45:46.000So if you're a man and you say you're a lady, you're a lady.
00:45:48.000If you're a lady and you say you're a man, You're still a lady.
00:45:52.000And if you're a lady who says you're a lady, you're a lady.
00:45:53.000But if you're a man who says he's a man, verboten, this is what makes you a man.
00:45:59.000So, um, I think somewhere along the line you guys lost the logic.
00:46:04.000Again, it's hysterical to me that they literally cannot define woman.
00:46:07.000And so they are trapped into the mutually exclusive position of women who identify as men are still women and men who identify as women Are also women.
00:46:20.000Again, if trans women are women, and trans men are men, then trans men should not be allowed into a women's college.
00:46:28.000In a message to campus last week, the head of Wellesley described it as, quote, a women's college that admits cis, trans, and non-binary students, all who consistently identify as women.
00:47:30.000So you may not remember their names, but they were the heroes of the Juicy Sommelier saga.
00:47:35.000There were two brothers hired by Juicy.
00:47:38.000To supposedly beat him up on the streets of Chicago at 2 a.m.
00:47:41.000in the middle of a polar vortex after he got a Subway sandwich to pour bleach on him and yell, this is MAGA country!
00:47:48.000And then he went back to his apartment and claimed that he was a victim of a racist and homophobic hate crime, as it turns out from two of his black trainer friends.
00:47:56.000And all of that came out, and Jussie has been duly humiliated.
00:48:01.000He still claims, of course, that none of this happened.
00:48:03.000Well, now, Fox Nation, this is one of the better things I've seen from Fox Nation, actually.
00:48:07.000They released a Fox News original in which they asked the Asindaro brothers to relive the crucial incident with Jussie Smollett.
00:49:48.000It's just, it is one of the great stories in American history.
00:49:51.000And it is a full scale demonstration of why Hollywood is corrupt, because I guarantee you that if this scandal had happened on the right, then this would 100% be a comedy movie made by Hollywood on the left.
00:50:02.000It is, however, one of the greatest stories in American history.
00:50:04.000It really shows you how far we've come as a society when a black gay man is paying other black men to fake beat him up for the publicity.
00:50:12.000Because that's how valuable victimhood is.
00:50:13.000So just slow clap for the Ostendero brothers.
00:50:15.000By the way, 10 out of 10 would watch the Ostendero brothers do a reality TV show.
00:51:24.000What started off as a seemingly well-intentioned partnership has turned into a giant embarrassment for the city of Newark.
00:51:31.000Earlier this year, Mayor Ross Baraka invited what he thought was the Hindu nation of Kailasa to Newark City Hall for a cultural trade agreement.
00:51:40.000But it turns out Kailasa is no nation at all.
00:51:48.000I'm really sorry for the city that they got duped in that way.
00:51:51.000Though it has a detailed website, Kailasa has no real government.
00:51:55.000It's the brainchild of Swami Nithyananda, a notorious scam artist and fugitive from India who has been on the run from rape charges since 2019.
00:52:03.000Whose job was it to do a simple Google search, right?
00:52:07.000As you said, like, no one in City Hall, not one person did a Google search.
00:52:27.000He fled on charges of rape and abduction in 2019.
00:52:30.000Recently, he claimed that he was developing an airport for aliens.
00:52:33.000Which, by the way, even for aliens, Newark Airport should not be the destination.
00:52:38.000No one should be forced to fly into Newark Airport.
00:52:41.000If this was the plan, to build the alien airport in Newark, I mean, I guess it would make them turn around and go home.
00:52:47.000So, Kailasa has no official territory.
00:52:49.000Although there were at one point rumors that Nithyananda had purchased land off the coast of Ecuador and was using that to establish his nation.
00:52:56.000But Ecuador was like, nah, not so much.
00:52:59.000Also, apparently Nithyananda launched the Reserve Bank of Kailasa in August 2020 and released its official gold currency, the Kailasan dollar.
00:53:06.000He also announced travel to his island nation would be available to those seeking to visit him.
00:53:09.000They would first need to travel to Australia and then via private charter to Kailasa.
00:53:14.000And presumably where they would be murdered and their money taken or something.
00:53:45.000Newark has a budget in the billions of dollars, so probably you should have these people run it, because they look like really competent, is what I'm thinking.
00:53:53.000Just keep... Newark keeps getting better and better.
00:53:56.000Life in Newark on that upward trajectory.
00:54:05.000Alright, time for a thing that I hate.
00:54:07.000So, Jamie Lee Curtis has a trans child because, again, it is amazing.
00:54:16.000The genetic bottlenecking that happens in Hollywood is just incredible.
00:54:18.000Like a number of trans kids in Hollywood.
00:54:20.000I don't know what happened if there was like an evolutionary bottleneck there, you know, in sort of in the Stephen Jay Gould notion that basically there's like a set of mountains and on that one side of the mountains, all the people with the trans recessive gene went and then they all reproduced with each other and then all their kids were trans.
00:54:36.000But in any case, Jamie Lee Curtis, who has a quote-unquote transgender daughter, well, she just won an Oscar for everything, everywhere, all at once, forever, for all time.
00:54:46.000And, you know, she's fine in the movie.
00:54:49.000Again, I've expressed I think the movie is wildly overrated.
00:54:53.000It basically won because it was immigrant Asians must accept lesbianism across the multiverse.
00:54:59.000That was essentially the theme of the film.
00:55:02.000So it hit all the intersectional checkboxes that Hollywood likes.
00:55:07.000And so now she's making statements about how they should get rid of the male-female categories.
00:55:14.000How they should get rid of the male-female categories for best actor and best actress.
00:55:36.000And of course the inclusivity then That involves the bigger question, which is, how do you include everyone when there are binary choices, which is very difficult and is the mother of a trans daughter.
00:56:14.000Every year, there are a lot of men who don't get nominated for Oscars and there are a lot of women who should not be nominated for Oscars who are.
00:56:20.000If you look at the last few supporting actress categories or supporting actor categories, And put it out there, the supporting actor category is a lot stronger than the supporting actress categories.
00:56:30.000Same thing seems to be true in the best actor category versus the best actress category.
00:57:32.000Since since everyone is androgynous, we should have men playing women's parts and women playing men parts and everybody's non-binary, whatever.
00:57:37.000Then sure, get rid of the categories, too.
00:57:38.000And we'll see how it works out for the ladies.