00:05:49.300we are blinded to the economics and our Medicare advisors never put people into a plan that's not
00:05:56.020right for their needs. They don't even know how much a plan may pay chapter. And so in that way,
00:06:02.140we really focus on just what's best for the consumer. And it takes a lot of work. It's
00:06:05.780really hard from a technology and a data perspective and an operational perspective
00:06:08.960to pull that off, which is part of why other people don't do it. But we've been able to
00:06:13.300build this business in this way, and it's allowed us to save the posse a lot of money.
00:06:16.300well it's the feedback's tremendous uh kobe a45 war room thank you for doing this thank you for
00:06:23.840setting the company and uh all the great reps you've got the deal the interface of people
00:06:28.380people love it so thank you so much appreciate you sir thanks for having me steve what a what
00:06:34.180a gentleman sometimes unscrupulous when there's a hundred billion dollars of cash money out there
00:06:40.200to grab folks are gonna be grabbing and they're gonna be putting you in the wrong plan that's
00:06:44.900why you got to make these decisions on your own with full information so natalie g winners and
00:06:49.580we get to philip patrick i mean natalie g winners i want to go back to this because you've just
00:06:53.080recently had announcement as as the trump administration goes through trying to get
00:06:58.020their arms around uh spending but most importantly about exactly what people are working on their
00:07:04.220cutting programs particularly some of these research programs there's been an announcement
00:07:08.020i think over the last 60 days that american citizens now most of these have chinese or
00:07:14.120indian names when you read the list i'm just saying that's a matter of fact are saying oh no
00:07:19.420we're going to go to china we're going to work at chinese universities or we're going to be
00:07:23.100underwritten by chinese this comes after decades of where the united states has been underwriting
00:07:28.400the chinese communist party in this of research that they take immediately and work on their
00:07:34.540weapons programs against the united states make it make all this make sense to us ma'am0.67
00:07:41.220Well, you know, as much as people are mocking Darlene Graham for like not knowing anything
00:07:45.220about national security, I would probably apply that same standard to most people in
00:07:50.500Congress because they're funding this.
00:07:52.180And frankly, most Pentagon predecessors have okayed this.
00:07:55.860I like to get granular because I think you can see it with the facts themselves.
00:08:00.080So I put up a Twitter thread, Denver, if you want to roll it, you can while I talk.
00:08:04.180But I identified dozens of people.0.98
00:08:06.960And like you said, Steve, all of these people that I can't even pronounce the names yet, they're getting, maybe we should apply the Maha standard. Like if you can't pronounce it, you don't eat it. If you can't pronounce it, you don't give it millions of taxpayer dollars from, I don't know, the US Army or DARPA or the Navy.
00:08:20.760but these are people who for years of course because they were attached to a united states
00:08:26.720university or college got funding from the army from the navy from darpa from some form of a
00:08:35.180pentagon you know procured or utilized um research grant and literally sometimes within the same year
00:08:41.920if not the year prior so concurrently go back to china and are working on the same exact thing so
00:08:46.760So one individual, for example, and by the way, there are dozens of these that I've put up.
00:08:51.760I mean, forever, there's thousands, but this is one individual, Jinling Gao.
00:08:59.340He's participating in two U.S. Army projects involving protective textiles and detecting damage inside reinforced materials.
00:09:06.200So basically, you know, uniform, stuff like that.
00:09:08.140in april 22 so after he graduates literally goes back that year joins the nanjing university of
00:09:14.840aeronautics and astronautics where there he's working on the exact same stuff at the chinese
00:09:20.320naval equipment institute a quote protective structure project where he lists now from 2022
00:09:25.400since then to 2024 he's literally been working on a chinese central military commission project
00:09:30.720involving quote high performance woven materials the exact same exact same thing we were funding
00:09:36.720him to do research on. Take another person, for example, Hi Tao Xu. At Northwestern from 2016 to
00:09:44.0402018, he was a core member of a $6 million Pentagon project designed to uncover sophisticated hackers
00:09:49.960hiding inside major computer networks. Let me guess, they were probably all Chinese. Now he's0.96
00:09:56.060at Zhejiang University, where he's participating in a similar hacking program for the Chinese
00:10:01.680Central Military Commission. Hang Lee, 2010 to 2017. He's at George Washington University,
00:10:09.060where he's working on a U.S. Army and Pentagon program for rapidly identifying chemical and
00:10:13.840biological threats. That sounds like a really good idea in life of COVID. Then he goes and after,
00:10:19.880again, this is millions of dollars. Just a few years later, he goes back to China,
00:10:24.780joins the U.S. blacklisted Beijing Institute of Technology, where he's working on the same exact
00:10:31.500type of research, but doing it for the PLA. Steve, I could give you dozens and dozens,
00:10:38.000hundreds of examples. These are just particularly egregious because the year overlap, I could read
00:10:43.200you my whole thread. I won't waste your time. You should go read it on Twitter. But this is just part
00:10:48.120of the problem. Then you have the actual Americans, the names that I can pronounce, who, because of0.56
00:10:55.100the pipelines that have been established of people like this, right, the, you know, basically
00:10:59.340the disintegration of the Chinese wall, no pun intended, that used to exist between our science
00:11:04.060infrastructure and theirs, they're basically like forward deploying over to China. And all of a0.80
00:11:09.500sudden you see people, whether they're former Pentagon researchers or in the academic complex,
00:11:14.560I'm sure everyone remembers, what was it, Dr. Stephen Lieber or whatever at Harvard, Lieberman,
00:11:18.800who now is just working in China on a new lab. But all of these people, the Americans who have
00:11:24.020even more research, they're not just grant recipients, are then going over and lecturing.
00:11:28.500And in some cases, taking up full on fellowships. One individual that I exposed yesterday who was funded by DARPA and the Army and I believe the Navy, his resume literally lists that his goal is to, quote, break America's technology blockade on weapons tech, right? These people, they're not PLA combatants after they graduate. I know our university system is very radicalizing, but they're PLA combatants when they get here.
00:11:53.220And we fundamentally misunderstand how the PRC views science and technology. Take Xi Jinping's words, not mine, right? High tech, advanced tech is a weapon. It's a weapon of the future. And it's something that they have dedicated since at least 2015, basically their entire society to.
00:12:11.400And we are subsidizing the researchers who are literally now working for their central military commission. I don't see the inverse of that happening. And if the Fauci's of the world, right, those types want to say, oh, this is how we prevent war because of the lucidities trap. We just need to shut up and fund them.
00:12:30.600it's like what demonstrable benefit have we gotten from any of this oh this is all a covert program0.97
00:12:36.960designed to get him okay sure no it's not the chinese communist party every day they build
00:12:42.260more ships in a day than we do in two years who do you think subsidizing that and they took all0.70
00:12:47.200of our labor away and real quick steve to the point of the va this is a nine figure scandal
00:12:54.040over $676 million worth of VA-funded research that was either giving Chinese military researchers
00:13:03.120access to American veterans' data to do God knows what with, or in some cases, you look at these
00:13:09.700actual studies, and you can't pull a Fauci here, but you see VA money funding studies that are
00:13:15.640being done by Chinese researchers that are literally working for the PLA. I don't know
00:13:22.200how you can square that our foremost enemy that one day we will likely meet kinetically they0.83
00:13:26.820already are here coming in through our open border and we're giving them access to veterans data
00:13:32.520VA which can barely be funded people can barely get help yet we can find 670 million dollars
00:13:37.940to fund the PLA with I mean this kind of stuff is absurd and then it all comes back because the
00:13:45.580media is compromised so they won't report on it the top generals are compromised so they won't
00:13:50.040report on it the congressional staffers all the way up to their bosses are you know compromised
00:13:54.540so they're going to fund this stuff and this is how you get this like oscillate off just you know
00:13:59.240institutionalized systemic and just problem that you can't fix i mean you can if you call it out
00:14:06.120but because the system they've created it such that it will never get exposed
00:14:09.660this is not managed to climb this is accelerated collapse stick around natalie i got to play uh
00:14:17.840hannity from last night um philip patrick's with us we're gonna get into all the efforts of
00:14:24.240secretary treasury scott besson plus the full-on economic war economic d-day coming to the persians
00:14:30.880all next in the war room i guess uh the five and a half 5.5 trillion dollars that we take
00:14:37.120in revenue all sources uh at treasury they need to do a lot more and so scott's got a mandate to
00:14:44.640to go get all the money they think they're owed.
00:16:51.220I'm not a polished politician up here.
00:16:53.920National security is not my thing, not my area of expertise.
00:16:58.600but I do support the military. That was Senator Darlene Graham of South Carolina,
00:17:03.640of course, the sister of the late Lindsey Graham. Tuesday night, the only debate before the state's
00:17:07.800runoff election. Graham addressed her answer on foreign policy in a new interview last night on
00:17:13.440Fox News. I've said many times, I'm not a politician, certainly not a career politician.
00:17:21.420I don't speak politician. You know, I was just honest, and I think that's kind of a foreign0.99
00:17:27.000concept but i talked to several people today i traveled around the state and they said you know
00:17:32.360we appreciated the fact that you were honest and i did say several times that you know china is0.73
00:17:39.640our our enemy our military and economic threat to the united states of course taiwan is our friend0.99
00:17:47.980but i think people in south carolina are more worried about making ends meet they're concerned
00:17:54.360about boys and girls sports. One lady talked to me extensively about that today. They're concerned
00:18:00.820about the Second Amendment. They're concerned about the Save America Act. Graham is in a runoff
00:18:08.140primary election for a full term in the Senate. She's facing Republican Congressman Ralph Norman.
00:18:12.640That election is coming on Tuesday. Honesty is one thing, but you're trying to be a United States
00:18:21.020senator for a full term and as her brother would tell her that's a very foreign policy is a very
00:18:26.160important part of that job and understanding what that is and just one other point about that's not
00:18:30.900the clip i wanted hang on hang on hang on full stop we'll do this later this afternoon i'll do
00:18:35.700it in the five o'clock show natalie basically uh she doesn't know taiwan she handed he covered
00:18:41.940for it last night said well i don't think anybody in america knows where taiwan is uh but he says
00:18:46.940you are an expert in the middle east so she's got the apex answer to everything this is this is a
00:18:53.180clown show this is a clown show okay she is not prepared to be on a city commission much less in
00:19:00.720the senate much less when we have the problems facing the country today natalie uh your thoughts0.97
00:19:06.000and observations ma'am i think you're being mean the clowns um you know i guess give her credit0.85
00:19:12.500at least she called China a military and economic threat. I guess she's not been well-versed enough0.93
00:19:16.900that she's not allowed to say that if you're a member of the Senate because you have to be bought
00:19:20.380and paid for by them. But I really think shame on Sean Hannity, first and foremost, because
00:19:25.800he's taking our line, which is that if Democrats cannot put something on a Mac, then we probably
00:19:32.160shouldn't fund it. But now he's using that to defend inferior candidates and basically justify
00:19:37.300that we should just fund military expansionism abroad. So I don't like that cultural appropriation
00:19:42.320Also, Sean, the war room posse can most definitely put Taiwan on a map, can find it and probably even knows all about their semiconductors, their fabs and stuff like that.
00:19:51.220I think it's probably easier to find than Fox News's justification for another never ending forever Middle East war.0.98
00:19:57.900But it's just a clown show. Like, why can't we just have serious leaders that people like that or how the Chinese Communist Party runs circles over us to the point where we're literally funding their military?
00:20:09.040her brother probably supported it she's just too dumb to you know know that it's going on but you0.92
00:20:13.240think Xi Jinping is feared by that no she probably wouldn't even be a janitor uh in the CCP0.98
00:20:18.740no but Natalie this gets to your point the most important point what underlies all this it went
00:20:26.980from managed decline right now it's accelerated because and and because the elites in this country
00:20:32.780won't address the problems and this is why in this time for the great state of South Carolina
00:20:37.540you got so many i mean so many patriots there it's the railhead of of so much of maga that you
00:20:44.320know this is just embarrassing and it's embarrassing on a global scale the spending that you go through
00:20:49.360and look at it every day is is the congress because right now the cr folks when you talk
00:20:53.640about the cr and kicking the can down the road when they get back past september 30th and we get
00:20:58.160to december and that's when we're going to handle it we're not going to get a omnibus we're really
00:21:01.980going to take care of spending then. This is all Biden and Pelosi spending. We really haven't made
00:21:07.920any cuts at all. Every time a Russ vote goes to the president, the president puts forth one of
00:21:12.560these rescission bills, it gets rejected by the Senate. Oh, it's $5 billion. We can't do that
00:21:17.500because it's USAID programs. We certainly can't do that. Your thoughts about how spending is at
00:21:23.640the heart is what's burying us. Well, it's sure it's Biden and Pelosi spending, but at what point
00:21:59.440And from a national defense perspective, I am so sick and tired. Sometimes it's why I hesitate from wanting to even do China reporting, where you see these neocon war hawk, anti-China Republicans co-opt the China issue.
00:22:13.960The only reason why being anti-China is purportedly bipartisan is because it's the best justification to expand the defense budget.0.67
00:22:21.540And look, I would actually like to have a defense department that can counter the Chinese Communist Party.0.52
00:22:25.980there are ways to do that. When you look at the parity dollar per dollar spending, our dollar goes0.54
00:22:31.060like one-tenth of the way a dollar in China goes because it's being routed through primes that
00:22:35.080don't do anything. You're paying off this person, that person. It's the military industrial complex,
00:22:39.560but people use the China threat as an excuse to just inflate budgets. And we see basically no ROI
00:22:45.780to the point where it takes us what, like three years to build one single tomahawk. Meanwhile,
00:22:49.880that China's building, China's building multiple a day. So for all this spending, like steel man,
00:22:56.060the argument, Steve, right, for all the spending that we're told, even then, it's not enough.0.74
00:23:01.740It's not enough to counter China. But when you look at the reality, right, where the rubber meets
00:23:05.940the road, the gap between us, you would say the bit in the ass, none of this ever materializes,0.99
00:23:09.940even the steel man version of how they talk so tough on China. You know, I'm so tired of like0.98
00:23:13.960the House Select Committee on China, writing letters and writing statements and putting out
00:23:20.060tweets, basically lifting investigative reporting about CCP ties from other institutions,
00:23:26.100you have the power to do something about it. So do something about it. You're continuing to fund
00:23:32.500it. You're not scaring these people by sending them a letter. Take them off the stock market.
00:23:37.400Actually sanction these institutions. Get their names. Call them out. Call out the Americans who
00:23:42.240collaborated with them. Literally could cancel. Steve, I list in my article, all 61 papers,
00:23:47.920the grant numbers, they're hyperlinked. So easy. Cancel all of them today. But our Republicans are
00:23:53.500a joke. They won't even defund USAID. And I'm sorry, with all the doge cuts, how is all this0.92
00:23:59.160stuff still expanding? I thought we canceled billions, if not trillions of dollars. It's all
00:24:04.200so performative. It makes me sick. But Steve, the other part of this, the domestic ramification,
00:24:10.680no wonder why people are being pulled to DSA.
00:24:13.560I mean, first of all, you don't have the cultural backstops,
00:24:15.940the nuclear families under attack, right?
00:24:17.800People don't feel like they can buy a house,
00:24:19.440but we're not doing anything about it.
00:27:42.360project in the u.s senate now that lindsey graham has gone to his just reward tom cotton
00:27:48.880would tom cotton win i don't know probably but right now with what 80 days out he ain't winning
00:27:57.060according to a poll guy who won by 30 some points last time short break
00:28:02.460if you're 65 or already on medicare listen up folks and grab a pen maybe even a number two
00:28:18.880pencil call 845 war room that's 845 war room call it right now i'm serious call it now here's why
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00:28:33.400designed to confuse you and rip you off. Rising premiums, denied claims, fine print nobody but a
00:28:41.180lobbyist understands. Millions of American seniors are paying too much and getting too little. And
00:28:46.520worst of all, most don't even know it. Hey, that could be you. That's why if you're already on
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00:29:46.140okay um artificial intelligence the data centers i'm going to break down also best since i think
00:29:55.760today at five o'clock uh just bear with me what reason i'm saying about tom cotton guy wins by
00:30:03.26033 points last time he ran nothing's for certain right now this is why don't take it for granted
00:30:09.440if you put uh if you put graham's sister up that's gonna be a lock in south carolina people
00:30:13.820well you can't it's impossible in south carolina hey okay look who you got as a democratic nominee
00:30:21.300in uh in michigan he's up today in a poll from susquehanna by seven i haven't gone through all
00:30:27.520that so don't don't panic because the other polls have showed rogers up by four or five but
00:30:32.200data centers data centers in wisconsin got tom tiffany in the lead data centers in ohio have
00:30:38.760husted losing by i think seven or eight points the data center is a central issue only 15 percent of
00:30:44.980the american people support the tech oligarchs in doing this anyway all of this at five today
00:30:49.460come back we're gonna drill down on it um philip patrick you're a site for sore eyes
00:30:55.300okay the treasury secretary scott besan who you know he was a contributor with you here for years
00:31:02.240he's doing extraordinary measures we're going to get to why he's doing it but just give us the
00:31:06.180overall macro. The debt, the deficit took us 200 years to get to a trillion. It took us 90 days
00:31:12.740to add the last trillion. Sir, as you've warned us about, your thoughts about all this?
00:31:17.320It's getting to the point where it's unsolvable, certainly without very extreme measures. But you
00:31:24.020mentioned it's $40 trillion of debt. The problem is we're adding a trillion dollars now to that
00:31:29.360debt every five months. The big issue is the interest payments, the cost of the debt. That's
00:31:35.040now our second biggest expense for the country we bring in about five and a half trillion dollars a
00:31:40.000year our biggest expense is social security cost us one and a half trillion second biggest expense
00:31:46.040is now interest payments on the debt at 1.25 trillion but the big concern is we're seeing
00:31:51.680two things happening simultaneously in the current climate one we're adding a trillion dollars every
00:31:58.040five months so that top line number is getting bigger and bigger but the second thing is the
00:32:03.400world is simultaneously commanding higher interest to loan us the money. Listen, anybody
00:32:09.460loaning money to the US government for 30 years today understands that with a $2.1 trillion
00:32:15.620annual deficit and growing every year, there is going to be significant amounts of liquidity
00:32:21.920printed over the next 30 years. So they are commanding higher interest, essentially devaluation
00:32:28.840premiums to loan us the money. We've talked about this many times. Borrowing rates on the long end
00:32:34.820now, 10-year, 30-year treasuries, are above over 5%. That's the highest level since 2001.
00:32:42.340So what's Besant been doing? Well, he's been scrambling around trying to prevent the world
00:32:47.380from selling US debt. We saw it with Japan not long ago. We saw it with the OPEC countries0.78
00:32:54.600earlier this year. Extraordinary measures to prevent the sell-off from US debt. He's also
00:33:00.340trying to move a ton of the debt from the longer term to short-term T-bills, essentially that are
00:33:06.400due in a year or less. Why? Demand is still there. Borrowing rates are below 4%. This is the biggest
00:33:13.680juggling act in history. But the reality is this, the numbers do not look good. Today, interest
00:33:20.840payments on the debt alone are taking up about 25 percent of our total revenue 25 percent one in
00:33:28.320every four dollars that we generate just going to interest that's unproductive money but the problem
00:33:34.480is at current trajectory is we're adding two trillion a year and as the world is commanding
00:33:40.380higher interest it's projected that i think within less than a decade now interest payments on the
00:33:46.180debt will constitute 50% of our revenue. And a country cannot function in that scenario. And it
00:33:53.020brings me back to the sort of Ferguson example. This has happened at some point to every great
00:33:59.880empire in history. And the tipping point is typically when interest payments exceed defense
00:34:06.140spending. We did that officially last year. So the problem is mounting every single day. And
00:34:13.840besant is doing such an incredible job he's basically become the world's number one bond
00:34:19.360salesman imagine if you gave this guy a better product to sell how good how good a job he could
00:34:26.040do but the problem is a almost unsolvable today steve when you say unsolvable i mean folks take
00:34:37.420your number two pencil out and write that down let's go back to that scott besant who is a
00:34:43.520global capital market specialist and folks realize that and his hair is never on fire
00:34:48.020he's taking extraordinary efforts to make sure people don't bail that because of their current
00:34:54.800financial problems they're not cashing in their treasuries to generate cash for themselves this
00:35:00.660is why he intervened in the japanese bond market this is why he gave a basically i guess a lifeline
00:35:06.720to uae uh at the beginning of the war in the first couple of months of the war uh this is why now
00:35:12.820These are relatively small, but it's incentives, and it's pretty extraordinary for the Treasury to do that because we have a house of cards, the largest I've warned about for a long time, the global margin call.
00:35:32.840We have $300 trillion of debt in every aspect throughout the world.
00:35:38.260And, you know, my fear is to have a global margin call.
00:35:42.540When you have it in the bond market, it's going to make 1929, which was really an equity crisis at first, 2008, which was derivatives.
00:35:52.680Now you're going to have the thing to the central beating heart of what provides financing all over the world.
00:35:58.120the the central part of that is the 30 trillion dollar u.s treasury market but then you've got
00:36:02.500also so many other type of debt instruments we are playing with fire we are playing with fire
00:36:09.900and now we have to come up what what scott is doing and correct me if i'm wrong here because
00:36:14.860he's trying to figure out how to deal with an emergency that doesn't become a crisis correct
00:36:21.200but we have to get down to more basic solutions here. Scott's juggling. He's like juggling knives
00:36:29.820right now. Okay. And hoping one doesn't cut his hand or fall, but that's not the solution. That's
00:36:36.520just a, this, these are all stop gap measures. Am I correct on that? Philip Patrick. Yeah,
00:36:41.640he's buying us time. Right. And he's doing an incredibly good job of buying us time. The problem
00:36:46.220is you know where are the solutions right you can raise taxes and essentially increase the amount of
00:36:52.980revenue coming in that can come through economic boom and gdp growth as well you can curb spending
00:36:59.720which there doesn't appear to be any political will to do or ultimately and and sadly the longer
00:37:06.800this goes on and particularly as we watch the politics unfold sadly the third option is the
00:37:12.260central bank steps in and essentially creates a climate of financial repression where they have
00:37:16.860to keep interest rates artificially low and ultimately inflate the value of the debt away
00:37:23.600the problem is savers like us americans hard-working americans we're the ones that
00:37:29.780ultimately foot that bill so outside of growth and it would need to be exponential growth there
00:37:37.040isn't really a soft way out of this where we don't end up footing the big the big beautiful bill was
00:37:43.400a bet on we're going to grow or at least going to grow ahead of this to stay ahead of it like on a
00:37:49.060treadmill uh that has that was coming to fruition before the uh the persian war the iranian war and
00:37:57.380we have to face that that's just a fact that's a demonstrable fact um whether you can grow your
00:38:02.600way out of not not today with the turbulence in the global energy markets etc and the increased
00:38:09.740interest rates for everybody suppressing growth because that's essentially uh redirecting capital
00:38:15.920right from more productive means uh into paying interest in all this i don't i don't want to bury
00:38:22.620the lead here i want to go back take your number two pencil out and write down financial repression
00:38:29.180new concept that you got to understand because um this the more that this starts to look like
00:38:38.940the weimar republic right you have to understand what came after because folks as i predicted in
00:38:47.4602008 in 2009 when i made the film generation zero you're going to have a populist reaction
00:38:54.480to the bailouts of 2008. And guess what? We got a populist reaction. President Trump. I also
00:39:00.520warned for years that the future of the country's politics of populism, on one side, you're going to
00:39:05.920have Donnie and Mangione. That's a revolutionary Marxist jihadist, and their solution is
00:39:12.780spend it all. Let's cause a crisis. We'll step in and take it over. The other is populist
00:39:18.880nationalism but we have to have a solution to this part part of it is uh you have to have a
00:39:25.040massive cut in federal spending part of that is you can't have a global empire all over hell's
00:39:30.660half acre paying for when nobody else is helping you this is this gets to be the middle east it's
00:39:38.260one of the reasons we spent what nine trillion dollars already in failed wars over there
00:39:42.100we should learn the lesson of hemispheric defense the central pacific the three island chain
00:39:47.860confront the Chinese Communist Party and Bob's your uncle. I want to go back. The term financial0.76
00:39:54.140repression, what does it mean and how is it going to manifest itself that this audience will start
00:39:59.700to see it coming down the road? We've seen it before in the United States in sort of middle
00:40:06.040of World War II, 1942 to 1951. This was when the Treasury and the Fed worked together to cap
00:40:12.460government debt rates. And that's really what financial repression is. Essentially, back then,
00:40:17.940we had this enormous wartime burden. So rather than allowing the free markets to dictate longer
00:40:23.180term interest rate, we actively manage the price of money. And let's say, you know, inflation's
00:40:28.680running at 5%, they'll cap the interest rate on bonds at, let's say, 3%. So technically,
00:40:35.180they haven't defaulted on debt, right? You know, you're getting every single dollar bill that you
00:40:40.220a promise but in inflation adjusted terms we're losing purchasing power by holding debt in extreme
00:40:46.880scenarios they may legislate requirements to hold a percentage of our portfolio in government debt
00:40:53.020to control that interest rate but ultimately we're bearing the cost right because our money's growing
00:40:58.360at x inflation's running at y we're losing purchasing power that's how you see purchasing
00:41:04.180power dissipate over time. By the way, in the process, they're also eroding the value of the
00:41:10.560debt, right? So it's a form of debt management as well. But we as American citizens are the ones
00:41:16.040that ultimately bear the cost. We've seen this. I mean, look at Japan. They had two lost decades
00:41:21.340on the back of financial repression, and they're just beginning to get out of that now. It's where
00:41:27.140we're heading. It's the only scenario that I can see outside of very extreme measures. Like I said,
00:41:34.040curbing spending being perhaps the most important but as Natalie said previously this is a problem
00:41:39.940now on both sides of the aisle there isn't a desire to do it I just want to make sure I
00:41:46.140understand something you're saying that the program potentially it's not here today but
00:41:50.640we've done it before the financial repression is not an extreme measure there's more extreme
00:41:56.380measures beyond that listen it's the the problems that we have i'm starting to have the belief that
00:42:05.380it is literally becoming an unsolvable problem and now all we're trying to do is buy more and
00:42:12.260more and more time that that's the way that i see it but this is a ticking time bomb as soon as debt
00:42:18.920service but you know every year it's becoming a larger and larger and larger share of our revenue
00:42:23.720This is money that's completely unproductive. It becomes impossible for a country to function. And we are hurtling down that path so, so fast. Our only hope is just massive productivity increases from AI. And that in on itself is frightening.
00:42:40.860You know, we've spent $750 billion on infrastructure with $150 billion of profit this year.
00:42:48.980It's an, you know, if that's what we're relying on to get us out of this mess, it's an absolute
00:42:56.840This is why I talk about the bet we've got is a highly leveraged bet, not just at the
00:43:02.420government level, but also at the company level, a highly leveraged bet on productivity
00:43:06.660increases from artificial intelligence without, don't, don't, wait for it, concomitant mass
00:43:13.400layoffs and high-value-added jobs like STEM workers. Anyway, Philip, stick around.
00:43:20.760You've got to face reality here, folks. I am not a black pillar. We can fight our way out of this,
00:43:28.820but we have to be adults and grown-ups. The happy talk has to cease. Philip Patrick on the other
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