The Glenn Beck Program - Ep 178 ｜ David Sacks： The Banking Crisis Is Even WORSE than You Think

00:00:00.000 We're filming this episode on the heels of the second largest bank failure in American history.

00:00:06.000 If that weren't enough, the collapse of Silicon Valley Bank was followed immediately

00:00:10.700 by the kind of rescue mission that only ever happens for the elites.

00:00:15.980 In all the talks of T-bills and derivatives, many people find it hard to tell how this SVB

00:00:23.020 situation will affect every man. After all, SVB donated roughly $73 million to Black Lives Matter.

00:00:33.380 Systemic risk is the phrase that we keep hearing over and over and over again.

00:00:39.280 Systemic is a word that has usually only been used or overused by overeducated leftists who treat BLM

00:00:47.800 like a religion. Today's guest is an expert in all of these areas. Entrepreneur, investor.

00:00:55.560 He co-wrote the diversity myth with Peter Thiel in 1998, and he's a founding CEO of PayPal,

00:01:05.960 original members of the so-called PayPal mafia. Most recently, he has started the All In podcast

00:01:14.580 with three friends, and it has exploded. People are drawn to the gathering place of economics,

00:01:21.060 tech, politics, social issues, and poker. Three friends who don't always disagree, but are still

00:01:27.720 friends, you know, like America used to be. The notoriously leftist rag Slate recently described

00:01:35.060 the podcast as the infuriating, fascinating safe space for Silicon Valley's money men.

00:01:41.980 Today's guest is one of those money men. He's what I would call an elite who is also anti-elitist.

00:01:51.740 He is a big tech entrepreneur with working class ideals, inspired partly by his grandfather's

00:01:58.940 candy factory. Today, welcome David Sachs. Before we get to David, he might be more optimistic

00:02:08.400 on the banks and these bailouts than I am. If you are one of those people who think,

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00:03:15.400 Hey, David. Thanks for coming on. Hey, Glenn. How's it going? Yeah, of course. Good to see you.

00:03:32.240 So it's been, you know, kind of a wild ride here and I don't, I'm not sure if it's over,

00:03:37.020 um, but in a nutshell, um, who's responsible for the mess we find ourselves in and SVB?

00:03:51.020 Well, I think that what we're dealing with here is obviously a banking crisis that goes well beyond

00:03:56.800 SVB. Um, I mean, you now have Credit Suisse, which was the number two bank in Switzerland,

00:04:01.900 uh, which is a, you know, they call it a GCIP, a globally systemically important bank that basically

00:04:07.420 went under and had to be saved. Uh, you've had now four banks in the U S, uh, basically go under or

00:04:16.720 have to be backstopped to the point where they would have gone under if you weren't backstopped.

00:04:20.980 Uh, so clearly something's happening five banks and, you know, under two weeks, there's a larger

00:04:25.320 phenomenon here. And I think it's pretty simple. I think that we've had the fastest rate tightening

00:04:31.520 cycle ever, uh, or at least in our lifetimes where the fed has jacked up interest rates from almost

00:04:39.020 nothing to almost 5%. And they did it in less than a year. They did in like nine or 10 months.

00:04:44.680 And so that's created a tremendous whipsaw effect where, you know, the value of assets that depend

00:04:52.640 on interest rates, which is pretty much all of them, right? They, they immediately have a massive

00:04:58.800 change in value. So what you're seeing is that on the balance sheet of these banks, all of these

00:05:03.460 assets that they thought were safe, like mortgage bonds, like treasuries, you know, 10 year bonds,

00:05:09.340 these weren't supposed to be risky assets, right? You know, these aren't the, uh, these aren't the

00:05:14.860 derivatives of 2008. These are, this is sort of the supposed to be the safe money, but you're seeing

00:05:19.600 that they've been massively impaired in value because of the sudden spike in interest rates.

00:05:24.640 And then on the other side of the, the balance sheet with deposits, uh, there's been a huge

00:05:29.260 sort of tightening of the money supply. So depositors are leaving for a bunch of different

00:05:34.540 reasons. Sometimes they just want to get a higher rate of return in a money market fund.

00:05:37.920 Other times they're just drawing down capital. Sometimes they're fleeing to go to a bank that

00:05:42.720 they perceive as safer, right? You know, one of the, the G SIPs, we should talk about that,

00:05:46.960 but it's creating this tremendous stress on the banking system. And, um, I mean, that's basically

00:05:52.940 what's happening. I think SVB was sort of the canary in the coal mine. It was a more extreme

00:05:56.360 example of this effect, but you're seeing it now play out really across the banking system.

00:06:01.460 You know, I keep hearing, uh, well, it was a canary in the coal mine. I think all the canaries

00:06:05.120 are dead. Uh, we may not have many canaries left. Yeah. I mean, I, you know, I kind of sound,

00:06:11.740 feel like I'm standing in the mine shaft going guys, all the birds are dead. Uh, because it,

00:06:17.740 it, uh, what we did in 2008, um, you know, we violated the free market entirely. And then we

00:06:28.780 just started printing this money. And I think on it, you know, I think people, I'll give them the

00:06:33.880 benefit of the doubt. They honestly thought this would work. They didn't know they were backed up

00:06:38.540 into a corner. And so they did this. Well, that has never worked. And I think they thought they were

00:06:45.480 smarter than, you know, those who have done this in the past. And aren't we now just,

00:06:51.560 just rearranging the chairs on the Titanic? I mean, we might be slowing it down. Maybe we've

00:06:57.320 pulled back a couple of knots so we don't hit the iceberg, uh, you know, as fast, but aren't,

00:07:03.620 aren't we going to hit the iceberg? I, I think the situation is pretty scary because, um,

00:07:10.840 on the one hand, we still have pretty significant inflation, or at least that's what the

00:07:14.820 reports are showing. Uh, there's an argument. I think that there might be significant latency

00:07:20.000 in those reports, but, um, but on the one hand, you've got this inflation that the fed feels like

00:07:25.200 it needs to combat, uh, with, with even higher interest rates. On the other hand, you have, uh,

00:07:31.380 this tremendous stress that's building in the banking system. And, uh, I think these two things

00:07:36.200 are fundamentally irreconcilable. I mean, it's sort of the Scylla and Charybdis of our, uh, of our

00:07:42.120 financial situation here. If you want to keep raising rates to combat inflation, you're going

00:07:47.940 to keep, you know, turning up the heat on the banks until more of them crack. On the other hand,

00:07:54.280 if you want to stop raising rates or cut rates to save the banking system, then, you know, you could

00:08:00.780 have an inflation problem. So this is the real inflation problem. You have Biden saying $6.8 trillion

00:08:08.500 in spending for his budget. That's insanity. You can't, we can't keep doing this.

00:08:15.740 And that's the thing. I mean, you, you see now how utterly irresponsible it has been. And I know

00:08:22.720 that the spending and the money printing started before Biden, but he took it to another level,

00:08:27.860 just a whole nother level. And, um, you know, because the guy has been in Washington for 50 years.

00:08:33.060 So his, his view of a win, what a win looks like to him is you pass a big spending bill,

00:08:39.380 the bigger, the better, you know, the more trillions that you spend, the bigger the win.

00:08:44.200 And remember, I think this whole, this phase of the crisis, you're right that it goes back to 2008,

00:08:49.480 but I think this phase of the crisis really began in Q1 of 2021, when they passed that $2 trillion

00:08:57.960 COVID relief bill for a COVID problem that had winded down, you know, this was the so-called

00:09:03.680 American rescue plan. The economy was already hot. It was, it had already recovered. We didn't need

00:09:08.920 more stimulus. And that's why Larry Summers said, you know, an economist in their own party was like,

00:09:13.900 guys, like you're risking inflation. And they kind of poo-pooed him and said, oh, that's just Larry

00:09:18.300 being Larry. He's just sort of like a mischievous troublemaker or something. Well, sure enough,

00:09:23.160 four months later, the inflation came. We had that shock 5.1% inflation print, I think it was

00:09:28.900 in May of 2021. And what was the reaction? Oh, this is transitory. Don't worry about it. This is

00:09:34.960 nothing. This is a blip. And what that allowed them to do was keep spending and keep money printing.

00:09:40.580 So the Fed kept QE going for another six months and the administration kept spending trillions and

00:09:46.740 trillions more. Remember they wanted even more than they got, three and a half trillion build back

00:09:51.160 better. I mean, they just couldn't stop spending. And that's why they needed inflation to be

00:09:55.640 transitory so they could keep going with their program. But it wasn't transitory. And so we

00:10:01.900 basically had this bubble of 2021, this massive frothy bubble that inflated asset prices, that inflated

00:10:11.240 bank deposits. And then finally, at the end of the year in November of 21, the Fed finally turned

00:10:17.920 hawkish. By the way, it happened about two weeks after Powell was reconfirmed as Fed chair. He's the

00:10:24.740 only Trump official who has kept around for Biden's term. And you have to wonder how much pressure

00:10:30.640 he was under during that May to November period to tow the party line on transitory.

00:10:37.400 You know, because I think the second that he was reconfirmed, he basically said he turned hawkish. So,

00:10:42.420 you know, I think there's like politics all over this thing. So, Glenn, you know, people think the

00:10:47.020 Fed is independent. I don't know how independent it really is. It's not. And I think, I don't know who

00:10:53.020 leads who on that one. I think I do. But, you know, when you, when you look at inflation,

00:11:00.120 David, I mean, I am, I'm not you, but I'm not a dummy either. We have printed more money.

00:11:09.780 And the Fed has, I mean, at least what they're telling us is about eight trillion dollars on their

00:11:17.800 books. We have printed money like we're going out of style. I'm shocked that inflation is this low.

00:11:27.500 How high, what is it going to take to suck the money back in? I don't think you could do it without

00:11:34.640 collapsing everything and, and how bad can inflation get with all of the money that we currently have

00:11:41.240 spent? Well, Glenn, I think you're right. And I'm not like one of these so-called banking experts

00:11:48.620 either, or one of these modern monetary theory experts, but they're the ones. Wait, wait, wait,

00:11:54.020 wait, wait, wait. You got to stop. You don't believe in modern money because I mean, that's like a

00:11:59.060 fairy tale, a Dr. Seuss modern. Yes, it is. Yeah, good.

00:12:02.220 I'm saying that that's what the experts believe, right? They have all these fancy theories to

00:12:07.480 justify this ridiculous money printing, but you know, it takes a more simple intelligence to

00:12:14.960 understand that, Hey, you just can't keep printing all this money. You can't keep going into all this

00:12:21.200 debt. At some point you got to pay it back and you either pay back the money by, you know, with sort

00:12:28.040 of paying back with hard assets or you print money to pay it back. And if you print money,

00:12:32.300 you can get, you get inflation or even a hyperinflation. So I look, I think you've been

00:12:37.360 right about this. And, um, you know, it's just like we saw with COVID all these so-called experts

00:12:42.500 don't have a clue. So that's one of the problems I, you know, uh, here in America, they keep saying,

00:12:47.840 Oh, it's the Trump voter that is so dangerous and out of the street, whatever. And then you look over

00:12:53.340 in Holland, it's happening. You see it in France, you're seeing it in England. This is not about

00:12:59.200 parties. In reality, this is about elites and regular people that I really think, and I want

00:13:08.300 to bring this back to Silicon Valley. I think regular people are like, I've played by the rules

00:13:13.360 my whole life. And it is getting tougher and tougher for me to live up to all of these rules,

00:13:19.180 whether they're just the woke rules that could destroy me or all the federal government rules.

00:13:24.800 I've paid my taxes. I've worked hard. I've played by the rules. And you guys just seem to get richer

00:13:31.820 and richer in the banking community and in politics. And you're destroying my life.

00:13:38.940 How, how do we, how are we going to navigate through that?

00:13:43.080 Well, I think we need, there's always going to be, I think in any society, some sort of elite

00:13:50.560 class, but you want that elite to be based on meritocracy. You want them to know what they're

00:13:54.480 doing. You want them to be held accountable if they fail. And I think the problem we have

00:13:59.340 in this country is we have all these experts who are never held accountable for doing such a bad job

00:14:04.160 on foreign policy, on the economy, on COVID, on everything. And, you know, and it's, and it's,

00:14:11.180 and I think it's because of the media, you know, the media has become their bodyguard,

00:14:15.680 their protector instead of holding them accountable, which was their traditional

00:14:18.540 responsibility. I will tell you, I said on the day the bank failed SVB and the president came out

00:14:26.680 and said, no, don't worry. Everything's great. I said, how many of these so-called experts are we

00:14:32.160 going to listen to? The experts told us we're going to be fine in Afghanistan. The experts said we could

00:14:38.080 collapse Russia in, you know, in no time. The experts said they could print money and it wouldn't

00:14:45.140 be a problem. And then the experts told us there was no inflation. Everything that has happened in

00:14:51.120 the last 15 years with these so-called experts, look at COVID, look at Fauci. And with no one paying

00:14:59.480 the price ever, I think the time of experts is coming to a close. And, you know, I said this years

00:15:08.940 ago, you don't want the pendulum. We're, we're really good when we're kind of in the middle.

00:15:14.420 You don't want it swinging way to the right, way to the left. And when that happens and there's a

00:15:19.620 crisis, whichever way it's swinging really far, that side grabs it and says, it's not swinging anymore.

00:15:28.000 And we're kind of entering those days where the regular person is going to wake up at some point

00:15:36.800 and say, my life is being destroyed and they're going to want some heads. And I'm not, I mean,

00:15:43.940 I am so against, you know, all of these, the violence in the streets and everything else.

00:15:48.940 I'm not talking about that. I'm talking about how do we navigate? Can we wake anybody up in the elite

00:15:55.060 class to recognize what's happening to people? I think it's scary out there, the anger.

00:16:02.580 You know, I understand the anger and I think it's in many cases justified, but I'm, I'm worried that

00:16:08.500 it's, it's getting out of control and it's, it's not, it's going to lead us to a bad outcome. It's

00:16:13.460 certainly not going to lead to good policy, but, but I agree with you. I mean, there's been a profound

00:16:17.760 failure of the expert class. It's not just Glenn that they've missed problems. It's that they've

00:16:23.620 actually caused the problem. Yes. So you, you know, and then lied about the problem and then lied

00:16:28.420 about it. Exactly. So Fauci's job was to protect us from viruses. What does he do? He funds gain

00:16:33.600 of function research, right? You know, Victoria Newland, what's her job diplomacy? What does she

00:16:38.740 actually do? Fement conflict with Russia, right? You know, the, the, these economists who are supposed

00:16:44.860 to give us sound money, what do they do? They print so much money that we're in the economic

00:16:48.780 crisis that we're in. So it's just like unbelievable that they're literally doing the opposite of what

00:16:55.140 they're supposed to be doing. I mean, just literally the opposite. And, um, it should be easy to replace

00:17:01.940 them because it's so obvious that they're failing, but you can't, or it seems like you can't, because

00:17:06.780 again, we can't get honest media coverage of, of the situation. So it's a, it's a really bad

00:17:13.040 spot for the country to be. And I can see the anger just kind of rising up because I felt it,

00:17:18.000 you know, I was accused of being one of these Silicon Valley elites, um, you know, and kind of,

00:17:23.020 um, you know, even though I've spoken out on all these issues and, um, it's, it's scary just how

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00:18:49.460 dialing pound 250 and say the keyword baby. That's pound 250, keyword baby. Or you can go to

00:18:56.060 pre-born.com slash Glenn. Let's go to Silicon Valley and what is being called a bailout, but it is not

00:19:09.760 the bailout that we saw in 2008. But because of the way the Treasury and FDIC did it, I can't imagine

00:19:19.800 this is going to make anything better because they have bailed this bank out as far as all the

00:19:26.960 depositors, including the people who had $400 million in the bank. And I don't want to see anybody

00:19:33.920 go under, but if you're going to do that, now you're on the hook for everyone. But instead they

00:19:40.900 say, no, it'll just be the critical banks. Well, we'll end up with four banks, David.

00:19:45.340 Right. No, I think that's right. I mean, I think this is a perverse consequence of what happened

00:19:51.420 in 2008 is that I think this is something people just need to understand is that in 2008, I think

00:19:56.560 everyone knows about too big to fail, that these banks were considered too big and that therefore

00:20:00.280 the government had to step in and prevent them from failing. What they may not know is that that

00:20:04.060 status was effectively canonized and enshrined in law. They don't call it too big to fail. They call

00:20:08.900 it systemically important bank or SIP. Right. There's even, so there's four of these in the

00:20:13.580 U S or the trillion dollar club. They've got over a trillion dollars of assets. It's a JP Morgan,

00:20:18.940 Chase, Wells Fargo, um, city. And, um, who am I forgetting? Uh, it's not Goldman. It's, um,

00:20:29.060 Wells, uh, anyway, I'm spacing on the name of the country. Yeah. B of a, sorry. Yeah, that's right.

00:20:33.500 B of a. So these guys are in the trillion dollar club. They're, they're basically too big to fail.

00:20:38.400 And all the other regional banks are not systemically important. And so I think what you

00:20:44.000 start to see last week is that people is that the deposits started flowing massively to the SIPs

00:20:50.940 because people started to wonder whether their money was safe in these regional banks. And, uh,

00:20:56.580 and actually you can see just today, JP Morgan, Chase announced their new, uh, deposit interest rate

00:21:02.380 is 0.01%. So basically they've slashed their interest rate to almost nothing, basically to

00:21:09.620 zero because so many people are worried that their money won't be safe except in these SIPs. So there's

00:21:16.440 huge money flows happening right now to these systemically important banks. So, which people

00:21:22.760 don't understand those, the local and regional 70% of all of our business loans, it all goes

00:21:32.200 through the smaller banks. I mean, you collapse those small regional banks and the small, um,

00:21:38.140 local banks and the economy goes to hell. I mean, it business is done. Yeah, exactly. And I, you know,

00:21:47.320 another thing that people may not know is just roughly half the deposits in the U S banking system

00:21:51.560 are uninsured. You know, this is not, I mean, there, there's always examples you can cherry pick of

00:21:56.500 someone, some company or some wealthy individual being stupid, but this is really about business

00:22:01.760 banking in this country. $250,000 is the FDIC limit just isn't enough for, for most businesses.

00:22:07.980 They have to run payroll or do payables at the end of the month, but it's never been, so that's why,

00:22:13.080 but it's never been a problem because our banks were stable. Now that the banks aren't stable now

00:22:19.500 as a businessman, you're like, I can't put that money in the bank like that.

00:22:22.660 Right. Exactly. And there's a fundamental mismatch in, I mean, this is where I think the banking

00:22:28.540 system is so crazy is that what the consumer and I'm including small businesses in that think

00:22:34.300 they're getting is so different than what the bank thinks it's getting. So when a consumer or small

00:22:40.800 business goes to a bank and puts their money there, they think they're just getting a checking account.

00:22:45.720 They think they're getting the ability to write checks, to do payables, to do run payroll,

00:22:50.820 get an ATM card. And, and, and it's a safe place to keep their money. What the bank thinks it's

00:22:55.820 getting is a loan. Right. Right. On their balance sheet, it's treated like a loan and then they can

00:23:01.760 take that loan and invest it and they get to keep the upside on that money. I mean, so that's just like

00:23:09.020 a fundamental mismatch and it's, and this is what leads to problems is that when those banks

00:23:14.060 invest in things that are too risky because they get to keep the upside, then all of a sudden the

00:23:19.320 depositor gets a loss and then the depositor is like, wait a second, I thought my money was safe

00:23:24.040 in the bank. And this is where I actually think that we do need like regulations. Can I, can I ask

00:23:30.700 you to solve that? I, I mean, again, I know nothing about the banking system. Just looking at it as

00:23:38.040 somebody who hasn't, you know, gone through business school and, you know, and had the

00:23:43.800 indoctrination of we're fine. The system is great and it'll never break. Why don't we just make sure

00:23:50.860 that banks can't go out and, uh, and invest in, uh, you know, stocks and, and the, and, and play the

00:24:01.220 games that they're playing. Why, why can't we have those investments in a separate investment bank

00:24:08.040 and then a bank bank? Why can't we separate those two? I know that that would make sense to me is,

00:24:14.860 um, is that when you, that you should just be able to go get an account. That's your, as a consumer

00:24:21.120 small business, that's just kind of your payments account. And you, you want the functionality in

00:24:25.240 other words, right? And, and look, you'll, you'll take a little bit of interest on that, but your,

00:24:28.680 your objective is not interest maximizing. It's just getting the functionality. Um, you should

00:24:34.680 be able to get that, you know? Um, but it's just, we have a weird system. I mean, this is kind of the

00:24:39.860 way the banking system works. I think that what you have to do is I think ultimately the quid pro quo

00:24:45.660 here is going to be that we create some sort of like business plus FDIC, meaning some much higher

00:24:53.320 level of FDIC that makes it acceptable for businesses to use banks. And then the quid pro

00:25:01.740 quote for that is the banks just can't do anything risky with that money or you're going to have to

00:25:05.820 be much more tightly constrained. So now I don't know all the details of how that's going to get

00:25:10.200 worked out, but I think that's kind of where we're, we're headed on this thing.

00:25:13.980 So, um, SB, SVB didn't do anything risky. I mean, they, they put it in treasuries,

00:25:20.700 but they were 10 year treasuries. How does this bank that got an A plus rating from everybody

00:25:28.580 and had a member of the fed on their board make that kind of mistake?

00:25:36.840 I mean, the only thing I can think of is that they thought inflation would be transitory,

00:25:45.860 that they actually believed Biden, Yellen and Powell. I think that was a really stupid mistake,

00:25:50.440 but that, that was the, yeah, they were the one idiots who believed that other than, or they were

00:25:55.060 just completely asleep at the wheel. Clearly they did a horrible job with risk management,

00:25:58.500 but just so everyone understands like what happened there. So they bought, so in the two years,

00:26:04.420 the last couple of years during COVID, when there was all this money printing, their deposits swelled,

00:26:09.740 it's something like tripled from, from something like 60 billion to 180 billion. And then they put

00:26:16.260 something like 80 billion in these, um, in, in 10 year mortgage bonds, which are supposed to be safe.

00:26:23.360 You know, they were playing like 1.6%. They thought they were doing something safe. And the fed at that

00:26:29.580 time was, you know, they do these dot plot projections and the fed was saying that,

00:26:34.300 yeah, we don't plan on raising interest rates anytime soon. So now that's no excuse. I mean,

00:26:39.700 they should have been like more aware of what was going on and they should have hedged the interest

00:26:44.700 rate risks when the environment started to turn. But basically what happened is that they committed

00:26:51.060 themselves to these 10 year mortgage bonds, whose value went way down as interest rates spiked. And then

00:26:58.220 the other thing that precipitated is they just have a more volatile depositor base, right? Catering to

00:27:04.340 startups. So, you know, they're, they're on pressure on both sides of their balance sheet and they just

00:27:09.440 mismanaged the whole thing, but sort of the feds. I mean, you know, the feds knew there was a problem

00:27:13.680 here going back to the end of 2022, you know, the Monday, like literally three days before, um,

00:27:21.740 three or four days for SVB got put in receivership, the head of the FDIC testified that banks were

00:27:28.520 sitting on $620 billion of unrealized losses from these types of long dated bonds, right? As of the

00:27:35.500 end of 2022. So they've had that information for months now. Well, what have they been doing about

00:27:41.160 it? I mean, they should have been proactively going to these banks and try to work out these

00:27:45.060 situations before, you know, they're, they're, they're, they're put in receivership. And historically,

00:27:51.080 that's what they've done by the way is, you know, when a bank gets in trouble, they'll close it down

00:27:56.000 over a weekend and they'll put it in the hands of some other bank and it opens under a new brand name

00:28:01.700 on Monday and it tells everyone their deposits are safe. But for some reason they just didn't step in

00:28:06.660 here. Um, so I think, you know, there was a lot of sleeping at the wheel, but look, I don't want to

00:28:11.840 take, um, blame away from SVB's management because they clearly did a really bad job too. I mean,

00:28:17.760 they spooked everybody on, it was on Wednesday after the market closed. This is the, you know,

00:28:23.640 the two days before it went into official receivership, they put out a, um, an 8k statement

00:28:29.560 basically saying that like, oopsie daisy, we, uh, we had to sell all of our available for sale

00:28:37.720 securities over 20 billion of securities. We just had to liquidate them. Okay. And we're going to need

00:28:45.020 to raise billions of dollars of equity. And we're going to have to recognize a huge loss on our

00:28:51.260 long dated bonds that was previously unrealized on our balance sheet. Well, what do you think

00:28:56.080 happened right that night after the market closed? Her stock was down 30% and the articles were all

00:29:03.100 over the press by Thursday morning. The bank was in distress. So people have all these wild conspiracy

00:29:08.460 theories about why there was, you know, a run on the bank. People just read the news. The media caused

00:29:13.360 the rock. Well, I mean, I can't blame the media because they were just doing their jobs reporting

00:29:17.660 what SVB had put out there. So let me ask you, cause, um, you might remember when the fed had the

00:29:25.160 discount window, the discount window was kind of a shameful place to go. You as a bank didn't want

00:29:30.940 to go to the discount window because the other banks would know you're in trouble. Is that right?

00:29:36.360 I mean, you had kind of a internal warning system before that seemed to always work for a long time.

00:29:44.880 And now there's just, there's this, you know, billions and billions of dollars being given to

00:29:51.580 banks all the time for extended periods of time. That's new. Yeah. I mean, the thing we don't know,

00:30:00.200 Glenn, I think is what were the conversations taking place behind the scenes, uh, between SVB's

00:30:05.900 management and, and the feds, uh, you know, when did they, I mean, they must have, I would assume

00:30:11.520 go to the fed, go to the FDIC, go to the banking regulators and tell them, Hey, we have a problem

00:30:18.580 here. I'm, I don't know. I'm curious when that happened and I'm curious what the reaction

00:30:22.880 of those regulators was. Um, I don't think we have that information yet.

00:30:28.300 So credit suisse goes down and I called a friend of mine and I said, and Deutsche Bank stands?

00:30:35.900 I mean, isn't Deutsche Bank always in trouble or do we, do we have other banks that size that are

00:30:44.460 in trouble? Do you think?

00:30:48.140 Well, you know, what I would say is the, the, the reliable way to figure out which banks are

00:30:55.480 having problems is you just follow the stock market. So even before the media seems to report

00:31:01.820 on problems at a bank, uh, the short sellers seem to, you know, get ahold of it and you see the

00:31:07.680 stock prices going down. Like I said, soon as SVB put out that 8k, their stock was down 30%. And I

00:31:14.240 think by noon, the next day it was down 60%. So just follow the stock market is kind of like telling you

00:31:19.900 where to look, um, because those guys are really doing their homework. So look, I don't know. I don't

00:31:25.500 want to say any particular bank is in trouble. And here, here's the other thing is just when you're

00:31:31.340 talking about systemically important banks, the government's already said, it's not going to let

00:31:35.020 them fail. Right. So it's, it's kind of more like how much trouble is the system in? Yeah. How much

00:31:42.220 trouble is the government in? So, because if these banks have, have, have problems, it's not going to

00:31:47.860 be on those banks at the end of the day. It's going to be on, on the taxpayer.

00:31:50.180 So can I just take you to a dark place here for just a second war game, something for me? Um,

00:31:55.780 sure. You know, we are, we could have a, a serious banking collapse, which would lead to

00:32:01.980 financial collapse all over the world. Um, in the Western world, at least, um, we have war

00:32:07.900 on the horizon. None of these things have to happen, but, but if they do, then the federal

00:32:16.220 government comes in, bails, these banks and depositors out with money they don't have. So

00:32:21.900 they're just printing the money. Um, if it has that kind of collapse, businesses go down, you lose

00:32:29.760 jobs, then the supply chain would also, you know, you can't keep people working. So the supply chain

00:32:35.780 goes down, which drives interest rates through the roof. And with this much money pouring everywhere,

00:32:42.280 um, you got a real problem. The, it seems to me that the, uh, central bank digital currency or digital

00:32:56.020 coin is the end game here in a reset. Does that make sense to you at all? If we would hit this kind

00:33:04.660 of a problem? Well, it's hard to say. I mean, I, um, here's what I'd say, Glenn is that you've been

00:33:13.780 ahead of the curve on so many things. The first time I ever heard the word ESG was from you.

00:33:18.920 Oh my God. I didn't know. Yeah. I didn't know what that was until I learned from you. So you've

00:33:23.960 been ahead of the curve in a lot of these things. And, um, I hope it doesn't go that way, obviously.

00:33:28.700 Um, you know, I, right now it, it looks to me like the government sees crypto as a threat

00:33:35.600 because it's kind of like an alternative, uh, right. But the, it's kind of like an all the,

00:33:40.760 the UCC is being updated in, you know, all 50 States now. And it defines money as a, uh, central bank

00:33:50.340 digital currency. Um, and that's a, a little terrifying because the central bank would have

00:33:59.280 complete control over your money. It's not like Bitcoin, which I can put on a thumb drive and take

00:34:05.540 out and go screw you. Um, it's, I don't, I don't have my money. It's, it's legally would be defined as

00:34:13.340 their money if it's in the bank. Um, and, uh, uh, that, that's the problem. That's the other half

00:34:21.260 of the modern monetary theory that nobody wants to talk about control. Yeah. I mean, yeah. And so

00:34:27.160 I think they're doing this in China with, they've got the digital you on. And, um, so I think that,

00:34:33.820 look, this is definitely one potential dystopian future. Um, you know, it's, um, it's, it's hard for

00:34:40.880 me to assess, uh, where, where, where this all leads. Um, I, I, you know, I'm, I'm just kind of

00:34:47.120 more in the immediate term. I'm just more concerned about this leading to, you know, a recession.

00:34:53.720 Uh, that's usually the result when you have a massive contraction of the money supply and of

00:34:59.540 credit, usually the result is, is a recession. I mean, when I talked to my friends in the real

00:35:04.500 estate industry, I mean, the things they're telling me are, are just scary because, you know,

00:35:09.960 I've got, well, so I got a friend who just redeveloped a building and he's got a A plus

00:35:17.200 tenant and he can't get his construction loan refinanced with long-term debt. He just can't

00:35:23.380 do it. He's willing to pay the prevailing interest rates. He can't find a bank that's willing to

00:35:27.640 loan right now. Um, I mean that, that's scary, right? And the reason, and the reason why is just

00:35:34.520 because if you're a bank and you're seeing all this instability and you're worried about

00:35:39.580 deposits flowing out for any reason, you're just like, we got to hold onto our cash here.

00:35:45.040 We can't be putting it in a 10 year, you know, loan. And so like, that's just one example. I think

00:35:51.460 there's also the issue, you know, cause I'm, I'm here in San Francisco, we got over 30% vacancy

00:35:57.260 in these office towers and these office towers everywhere. Yeah, exactly. And so, and those

00:36:04.960 office towers, you know, are ultimately owned by the bank. I mean, yeah, the real estate developer

00:36:09.580 owns maybe a third of the capital stack in equity, but the bank up two thirds of the money. Well,

00:36:15.700 how's that going to work there? You have all this, all these loans that were supposed to be

00:36:20.820 a plus loans because these office buildings were supposed to be the best form of collateral there was.

00:36:25.780 And now you have to wonder how impaired those loans are. And, and so we haven't even gotten to the

00:36:31.780 loan portfolio of, of these banks, right? All we are looking at are the losses on the liquid

00:36:38.120 securities part of the portfolio, the safe part, the T bills and the mortgage bond. What happens when

00:36:44.120 you get to the, to the loan portfolio? Now, look, I don't think all banks are in the same boat,

00:36:49.460 but, um, but I, I do kind of, I do kind of worry that this whole commercial real estate thing

00:36:54.340 is going to be the next shoe to drop here. And, um, this is, it's, it's just kind of scary. Um,

00:37:01.960 I mean, obviously I hope they get a handle on it. Um, and I, I do think that the fed now is in a,

00:37:07.840 in a terrible spot because on the one hand, my view is you got to protect depositors. I just don't

00:37:14.160 think they thought when they put their money in the bank, they were making a risky investment

00:37:19.060 decision. I just think, I think if you tell depositors, sorry, you got to take it on the

00:37:24.260 chin because the fed didn't do its job. The fine printed too much money. You'll have chaos in this

00:37:30.620 country. On the other hand, and nobody, you said it earlier, nobody looks at putting my money in the

00:37:36.000 bank as an investment. I'm not putting it into it. You're holding it for me. Totally. Totally.

00:37:42.880 But on the other hand, if you do protect the depositors, we don't know how big a tab that's

00:37:46.620 going to be. Correct. Um, and how much money we're going to have to print to do that. So this

00:37:51.040 is the terrible, they're, they're on the horns of this, this terrible dilemma, but I'll tell you,

00:37:55.140 I don't, I don't, I don't fully like the way that Republicans are, are handling this issue. Um,

00:38:01.180 because I think the right position here politically, morally, regulatorily is to say that no bailouts

00:38:10.280 for banks. If bank management does a bad job, they're wiped out. Their stock options are

00:38:16.420 worthless. They might, we might even claw back these big bonuses they took. Uh, the stockholders

00:38:21.860 are wiped out. The bondholders are wiped out. They're all done. However, you got to protect

00:38:26.460 depositors. I just don't know how you don't protect depositors. And I'm hearing this like

00:38:30.760 Darwinian view, um, from the side that I'm usually aligned with that, well, depositors should have

00:38:38.300 known better. Like, you know, they were just stupid. Well, you know, or I had money in Silicon

00:38:43.880 Valley bank. I mean, it's a safe bait, a bank to do business with. So, I mean, you know, I guess

00:38:50.580 I should have known better. Well, I didn't, it's a safe bank. How are you going to know better when

00:38:56.040 Moody's didn't know better? Exactly. Right. How are you going to know better when the fed didn't know

00:38:59.900 better? I mean, I, I, I would separate the average person in, and me, even you from the fed

00:39:08.500 and Moody's that's their job. Okay. They should have known that's their job, but I shouldn't have

00:39:16.540 known unless they said, I'm not, I'm not watching the bank and, and, and have access to all of the

00:39:23.140 information that they have. Totally. I mean, what your average consumer or small business is supposed

00:39:29.620 to evaluate the balance sheet of a bank and try to figure out whether they got toxic assets or not

00:39:34.960 when they open a checking account so they can make payroll. I mean, it's not realistic, by the

00:39:39.480 way, that's the system we had a hundred years ago. It led to panics all the time. That's why they

00:39:44.220 created FDIC. We've, we've, we've seen this movie before, like Jimmy Stewart's in it. Um, it's, it's,

00:39:50.840 it's not a movie we want to go back to. The problem is that FDIC is not big enough for business

00:39:55.880 banking. And like I said, half the deposits in the banks are not insured because businesses need more.

00:40:03.380 So I think where we're going to end up here is that there needs to be a business plus level of FDIC

00:40:10.760 in exchange for which these banks just can't take risky investments because we don't want the

00:40:16.880 government to be on the hook if they screw up. Right. I want to talk to you about the hundreds

00:40:22.160 and hundreds of people that I have personally met that say, I couldn't take my pain anymore.

00:40:27.440 Uh, one of, one of our listeners, um, was, I believe on fentanyl, uh, her pain was so bad and

00:40:37.060 her husband cried and talked to me and said, she was just slipping away. She was, I didn't really

00:40:43.640 even recognize her anymore. She started taking relief factor and she was up walking around.

00:40:50.740 She was in my office. It's amazing. Now it doesn't happen for everybody. 70% of the people

00:40:56.700 who take relief factor, find relief and they go on ordering a month after month. So I want you to

00:41:02.820 call relief factor now and see if you're one of that 70% where you'll find relief 800 for relief,

00:41:09.180 800 for relief, get the 1995 three week quick start. That's relieffactor.com.

00:41:15.960 So, you know, there's the part of the problem that I see, uh, I, I think I said this in 2010 or 12

00:41:27.080 because I'm, I'm a amateur futurist. I love, uh, you know, the future of what's coming with AI and

00:41:34.840 everything else. It's terrifying and thrilling at the same time. And it'll be up to us to see which

00:41:41.320 way it goes. I think it might be up to AI, but, um, you know, the, the, the problem here is that we

00:41:48.440 have the entire industrial revolution took over a hundred years. This revolution that we're going

00:41:57.400 into now, this, everything from our governments to our banking, to our individual jobs, all of it

00:42:07.100 is changing because of the internet and technology. It's all changing and it's changing now in about a

00:42:17.720 10 year period in 10 years from two, from 2020 to 2030, you will not be the same country. And it's not

00:42:26.380 because of political decisions or anything else. It's because of technology. And I think we're just

00:42:32.240 going through the industrial revolution 10 times faster. Yeah, I think, I think you're right. And

00:42:40.660 that's another dilemma here because on the one hand, the, the change is incredibly disruptive and

00:42:47.800 scary. On the other hand, the only way we're going to get out of this debt or have a hope of getting out

00:42:54.420 of this debt without money printing or a hyperinflation is productivity. That's the only other alternative

00:43:00.600 to money printing is productivity. Well, you, so you're training the people in America to not be

00:43:06.020 productive. I mean, that's what the government's. Well, it's the hope would be with these AI tools

00:43:13.020 is that you can power up your, you know, your average employee through the use of these tools to

00:43:19.600 be much more productive. Right. And that it could unleash an economic boom. I also understand the argument

00:43:25.500 that maybe it puts people out of work. So, but you know, we're seeing, I mean, this is really year

00:43:31.420 one of this sort of commercial, let's call it the commercialization of AI and the, the demo,

00:43:38.000 the product demos that I'm seeing are really incredible what it can do. I mean, you can go

00:43:42.980 into these tools. Let's say you're a marketer and you just want to write a blog post, you know,

00:43:48.200 for your company, you just go in there and type in the headline in the first paragraph and it'll spit

00:43:52.500 out the rest for you as a first draft easy. And actually you can say, give me five alternatives

00:43:56.900 and then you pick the one you like best. And then you can just say, give me five more like this and

00:44:00.820 you do human evolution on it. So in any event, there's like a, or like coders right now, there's

00:44:06.140 this, um, this called a co-pilot where if you're a coder, you just described, you just talk to the AI

00:44:13.840 because it understands natural language. Say here, here's what I'm trying to do. Give me the code

00:44:17.160 and code that would have taken weeks to write. You'll just spit out in a minute and you can kind

00:44:24.640 of go from there. Now I think again, the optimistic scenario here is this doesn't put coders out of

00:44:29.500 business. It makes them much more productive. And so if we can get a productivity boom out of this

00:44:37.040 technology, that could be the way out of our current mess. The problem is though, again, in other

00:44:44.620 revolutions that we've had, you've had time to adapt. This is just going to make some people

00:44:51.120 more productive and also destroy, uh, other jobs and you have to retrain and rebalance and it's going

00:44:58.400 to happen so incredibly fast. Here's the, here's been my biggest problem. And I talked to Ray Kurzweil

00:45:05.160 about it. I I've, I've, I've talked to, um, uh, several people that are, um, into AI. No one is seemingly

00:45:14.400 seriously asking the philosophical questions that we have to decide right now. What is life?

00:45:24.820 It, you already, you could convince people with chat GPT today. You could get people to go,

00:45:33.040 you know what? It's alive. Well, then what happens if that's actually life? So we have to decide some

00:45:41.060 of these things. We have to decide it when we can download a person's thinking is that life? Or if

00:45:50.920 they've got cancer or something that's really expensive, can we just off them? Because they'll

00:45:56.080 always be here. There is no death because we've downloaded them. We're not, we're not asking, uh,

00:46:03.000 the questions on work. Does it, does, does that mean anything to the psyche of man? And you've got,

00:46:13.360 um, Yuval Arari who is, and the W E F talking about a lot of useless people and what are we going to do

00:46:22.680 with them? And his answer seems to be drug and entertain. That's not good. No, that's not good.

00:46:32.120 That's not good. I, uh, that's not good. Um, yeah, I mean, now I'll tell you one thing that's

00:46:38.740 interesting about whose jobs are getting disrupted is that it's actually the, the white collar jobs is

00:46:45.300 the knowledge worker jobs. You know, they just did a test, uh, on the new, um, uh, GPT and it can

00:46:52.160 pass the bar exam. I know. I mean, it does better than most lawyers. And the GPT three pass the bar

00:46:58.480 exam. GPT four is 90% better. 90% better. Yeah, exactly. So it's interesting because it,

00:47:10.060 because one of the things that's interesting is that the people who got disrupted and took it on the

00:47:14.660 chin the hardest over the last 10 or 20 years because of tech, let's call it more of the blue

00:47:20.320 collar or robotics. Exactly. Automation, the people who are impacted most by automation or by

00:47:28.580 the exporting of jobs to China, which I think in hindsight was a huge mistake. Um, but now it's

00:47:36.040 different. It's actually knowledge workers and coastal elites who are being disrupted. Um, so

00:47:41.460 yeah, it's interesting, but, but I, I, I still think it's going to be hard to know exactly how

00:47:47.560 it plays out. And, um, you know, it's, it's hard to stop these technology waves. Um, you can't,

00:47:54.740 the question is just whether you can guide them in a positive direction. And like you said, I don't

00:47:58.560 think anyone or not many people are asking, you know, the hard questions, although, you know, Elon,

00:48:03.800 Elon did, you know, the whole, the whole way that open AI got founded was back in 2016.

00:48:09.160 Elon said that like, Hey guys, I think AI is going to take over the world. This is like way further

00:48:15.180 ahead than people think. And so they created open AI to, to ethically guide the development of AI.

00:48:21.120 That was the purpose. And to put it in the hands of everybody. So no, no country or company would

00:48:27.220 have it. Well, that's over. I know. And, and it started as a nonprofit and somewhere along the way

00:48:33.340 it became right for profit. It became more like a company. So about the time he left.

00:48:40.280 So it's, it's, uh, it's, yeah, you can't make this stuff up. I mean, it's just a testament to

00:48:44.980 human nature, you know, is that if there's an opportunity, people are going to want to

00:48:50.120 exploit it. You can say either exploit it or develop it positively or negatively,

00:48:55.240 whatever you want to see it.

00:48:57.720 Talk to me a little bit about Elon Musk. He's a friend of yours, right?

00:49:00.860 Yeah. I mean, um, I think what he's done at Twitter with the Twitter files is incredible.

00:49:08.300 I think what he's done with, with pretty much everything. Yeah. I mean, he is, I would put

00:49:15.460 him in the category of, uh, of a Jefferson or a Franklin. I mean, that's what all of those

00:49:21.920 guys were like. He is just in a different category. What, what is, what is he like as a

00:49:28.140 person to be around? Is he, is he always way ahead or is, I mean, what's he like?

00:49:36.500 Um, well, I, you know, I've known him for, I guess, over 20 years now. And so to me, he's just,

00:49:42.940 you know, before he got super famous. So to me, it's just, you know, my friend Elon, you know,

00:49:46.740 um, I would say that, you know, what you see is really what you get with him. I mean, I remember

00:49:51.960 a conversation I had with him many years ago where I think we're just sitting on the couch and he's

00:49:56.880 sort of ruminating about, you know, you know, I wonder if we're living in a simulation, you know,

00:50:02.340 is this really based reality and to start riffing on this idea and things that really used to only

00:50:08.020 be asked by people on either pot or LSD. He just thinks that way. Yeah. He's just thinking about it.

00:50:15.560 And I remember thinking, well, this is really interesting, but I'm, I'm glad that the public

00:50:20.160 doesn't think that Elon thinks we're living in a simulation because, you know, they'll think he's

00:50:25.740 crazy. And, you know, and, but then, you know, a few months later, I hear him like basically talking

00:50:30.620 about it in an interview. And so like, he's, you know, what I'm saying is that what you're seeing

00:50:37.000 from him in public interviews is what he's saying in private too. Maybe just a little bit before we

00:50:43.960 just hear it first, but, um, what you see is what you get. You know, I have a daughter of special

00:50:49.420 needs. She had strokes at birth and I have been, um, uh, following, uh, what he is, the research

00:50:56.640 he's doing on the brain because that would repair all of the pathways. Um, I try to remember the

00:51:05.620 technology that is, um, um, anyways, basically putting beacons in, into your head and it can,

00:51:14.880 it could repair all the pathways. So she could think faster, um, and, and think the way, you know,

00:51:24.400 um, a healthy brain would think, uh, and it would change her life. And we've had conversations about

00:51:32.500 it and I'm, I'm as her dad, I'd love to see that. Um, she is not, uh, willing to, uh, to go there. Um,

00:51:44.220 and, and it's for as great as it is, it's a two way street. Eventually you'll not only be able to

00:51:54.000 help, but you'll be able to see into the brain. You'd be able to connect with the internet, which

00:52:00.200 is one of the things that I know that Elon wants to do. And that's a whole different,

00:52:06.220 now you're into transhumanism. Yeah. I mean, it was, we're getting into sci-fi type stuff,

00:52:12.520 but I think the reason why he found it in your link is because he saw that the AI was going to

00:52:18.220 evolve very quickly to be smarter than human intelligence. And the only way for humans to

00:52:23.460 catch up would be to have some sort of, um, you know, brain computer interface. And now, I mean,

00:52:31.500 that's the longterm vision and the short term, it's about fixing, um, the, these types of maladies,

00:52:37.160 you know, that people have serious, you know, um, issues. And so, you know, he's starting with

00:52:44.100 those, you could call them use cases in a way. And, you know, this is, I think a common denominator

00:52:48.800 of all of his companies is he starts with a really grand vision, but then makes it, he figures out the

00:52:53.900 tangible first step. So you take SpaceX, for example, the vision was to go colonize Mars,

00:52:58.980 but the first step was just to like get a rocket to launch into space. And then the middle step is

00:53:05.580 to get a satellite network working. So we have, you know, internet from space and then finally you

00:53:10.720 can do space exploration. So he figures out like he's got this grand vision, but then he figures

00:53:15.460 out how to break it down into stepping stones. Um, but you're right that, you know, you mentioned

00:53:22.320 like a Franklin or Jefferson. I mean, he's kind of a throwback to an earlier time where you had these

00:53:27.580 great individuals, inventors who, you know, would create these great things. And

00:53:35.560 um, and build these enormous enterprises, these great companies. And, you know, it's so different

00:53:41.920 than what we have today where it feels like everything is decision by committees and, you

00:53:47.220 know, and everybody's a professional manager who went to go get their Harvard MBA. And what did they

00:53:53.360 build? I mean, they didn't really build, they didn't really take risks. They just manage. Um, and you

00:53:58.880 know, they're all sort of politically connected. And part of this class that, you know, is connected

00:54:04.000 in Washington and goes to Davos and, you know, it's like part of this click with the media

00:54:09.680 that protects them. It's just, you know, again, it's part of that like fake expert class.

00:54:15.000 And it's, it's, I think this is the reason why they hate him. You know, I think that's the

00:54:19.140 reason why they hate him is because it's just, um, it represents a whole different model. It's

00:54:25.100 really the entrepreneurial capitalism that this country started.

00:54:29.280 Yes. It's the American model of one guy having an idea, you know, we are living, I don't know,

00:54:36.520 last time if ever, I mean, it's, I live in such a geeky world, uh, David, but, um, I don't

00:54:42.780 know the last time that you read, uh, Dwight Eisenhower's farewell speech from the Oval Office,

00:54:48.520 but he nailed this time period right now. And he talked about those inventors that are working

00:54:56.280 by themselves in their garage and coming up with ideas. Those are gone and they're going to be

00:55:01.280 replaced by teams of people working on things through corporations. And he warned us, uh,

00:55:08.320 against it and we didn't pay attention on very many things. Um, let me, and that, that speech,

00:55:15.700 I mean, it, it warned us about the military industrial complex and, uh, and I mean, Eisenhower,

00:55:20.840 he, he knew of which he spoke. I mean, he was the Supreme ally commander in World War II president

00:55:25.840 of the United States. He knew, he warned us that yes, we need a defense industry, but they would

00:55:30.960 become a special interest. And we have so many of these industrial complexes, whether it's the media,

00:55:37.600 the pharma industrial complex, the education industrial complex, where they've started just

00:55:43.460 becoming more of a special interest in their own right, as opposed to fulfilling the mission

00:55:48.880 that they were supposed, that they were created to do. They're serving, uh, money and, uh, the

00:55:55.080 government, it seems more and more. Um, and, uh, and less the it's, you know, the one thing about

00:56:03.540 Musk is it is a pure intent. You know, he wants to go to Mars. That's his end. It's not about becoming

00:56:11.380 the richest man in the world. And there's a, there's a difference, um, uh, on that. You know,

00:56:17.520 you work hard for the money. My gosh, have I turned into Donna summer? You work hard for

00:56:23.420 the money girl. If you're like me, when you have to spend that money, you prefer to spend

00:56:28.060 it on things that are of quality, especially if they're made here in America. That's not

00:56:33.980 just patriotism. It's a quality thing. And traditionally things that are made in America last longer,

00:56:40.600 work better and set the standard for the rest of the world. That's one of the reasons why I

00:56:45.820 love partnering with companies like grip six with grip six, you're getting the true American

00:56:50.720 experience products you can count on. For instance, you buy their socks. You're supporting American

00:56:57.560 ranchers who raise a specialty bred sheep that will produce the modern wool. Then you have the

00:57:04.700 American manufacturers who wash and process that wool. And then the other people who are weaving it

00:57:10.060 into socks that will keep your feet warm in the winter and cool in the summer. They're fantastic.

00:57:14.940 The American business owners who have accepted the risk that comes along with only using American

00:57:22.100 made products and American labor. Check out grip six today. I love them. I think you will too. Put

00:57:28.580 your hard earned money in your trust in a company that does it right in America. Grip six.com slash

00:57:35.660 back. That's grip six.com slash back. Let me quickly just cover a couple of things.

00:57:42.440 Um, I, I absolutely believe we blew up the Nord Stream pipeline. Uh, I don't know if we'll ever,

00:57:51.880 uh, prove that. Um, but I, I'm sorry, you know, the president who, you know, one of the signs of,

00:57:58.600 you know, dementia is saying things that you shouldn't say. Uh, and he comes out and says,

00:58:04.560 yeah, we can get rid of that. We don't believe me. We'll, we'll, we'll, we'll end it. Okay. Um,

00:58:12.840 do you think we're ever going to find out the truth on that?

00:58:19.800 Um, yeah, actually I, I do. I mean, I think eventually that's got to come out.

00:58:24.720 Now, eventually do you mean it? Like we just found, we just found out that the CIA was working with

00:58:30.680 Oswald and on his payroll, on their payroll. Yeah. I mean, maybe you're right that we'll never

00:58:35.980 know for, for maybe we'll never have that confirmation, but, but look, I, I agree with

00:58:40.420 you that Cy Hirsch's story is far more credible than, than the cover story they planted in the

00:58:46.260 New York times just recently, which was laughable. No, no, no. They know the boat. They just don't

00:58:51.040 know who was on it, but they know it was four men and one woman, but they have no idea. I mean,

00:58:56.540 it was ridiculous. It was ridiculous. They say like, okay, that arc that we believe that a pro

00:59:03.120 Ukrainian group did this. Okay. Well, well, which one we don't know. Uh, but well, did it include

00:59:11.140 Zelensky? Absolutely not. So it's like, it's like a weird, weird level of certainty about certain things.

00:59:19.560 And then like, they don't know any, you know what I mean? It's like, look, you either know who these

00:59:23.820 guys were or you don't. So how can you be so sure that it wasn't our specific allies, but,

00:59:29.240 but by the way, I mean, this was a very sophisticated operation that required a state actor to do.

00:59:34.040 Yeah. Um, and like you said, they said what they're going to do. So, um, I'm, I'm, I'm with

00:59:41.000 you on this one. I mean, it's the same kind of thing they're doing here. They're, they're, um,

00:59:45.460 decommissioning all of our coal fire plants and blocking the way for us to go back. Uh, that's pretty

00:59:51.760 much what happened with the Nord Stream pipeline, right? Just blocked your way to ever go back to

00:59:57.300 that source. Um, David, uh, last thing war with China and, or, uh, Russia, they look like they are

01:00:12.440 becoming closer and closer allies, um, and allies with Iran and now Saudi Arabia abandoned us because of,

01:00:21.300 for good reason. I would too, if I were them, um, how likely do you think it is that we'd be headed

01:00:29.280 towards war? And what does that mean? I mean, I've been warning about this since the Ukraine

01:00:37.720 situation started. Um, this is a proxy war of choice that we've gotten into. Uh, Ukraine is not

01:00:45.720 a member of NATO. It is not a treaty ally of the United States. Uh, we are not required to defend

01:00:52.660 it. Um, moreover, and I think this is the deeper point is we engaged in a series of actions going

01:00:59.340 back to 2008 that the Russians viewed as highly provocative. And they warned us over and over

01:01:05.980 again, is categorically unacceptable for you to try to bring Ukraine into NATO. And yet we persisted

01:01:12.040 in that mission. We have these crusaders at the state department who just want to keep expanding

01:01:17.380 NATO. And, you know, I don't know why they can't see that that is unacceptable to the Russians the same

01:01:24.680 way that the Soviet union trying to put nukes in Cuba was unacceptable to us in 1962. I mean, we have

01:01:31.860 the Monroe doctrine here that says that no distant great power can put troops and weapons in the Western

01:01:38.820 hemisphere. We consider that an intolerable security threat. And that is what we have been trying to do

01:01:45.320 with Ukraine for a long time. This was very easily avoidable in my view. And now we're at the point we

01:01:51.360 are effectively a co belligerent in this conflict. I mean, we're not just providing them with money

01:01:56.680 and weapons. We're providing them with intelligence. We have commandos on the ground, um, directing the flow

01:02:03.740 of those weapons and of intelligence that we've had administration officials brag about painting the

01:02:09.980 targets on Russian generals. Crazy. So they could be killed bragging about providing the intel to sink

01:02:16.280 the master, which is the Russian flagship. Um, can you imagine if Brezhnev did that when we were in

01:02:21.680 Vietnam, if Brezhnev went to Vietnam and said, our, our whole goal here is regime change. We're funding

01:02:29.820 you. We're painting the, we're paying the targets for you. My gosh, it's, it's crazy.

01:02:36.460 It's crazy. And, um, you know, like people sometimes compare, well, why isn't this like

01:02:40.500 Afghanistan where, you know, we bled the soap, like Reagan bled the Soviet union. Yeah. That was

01:02:44.540 a covert operation operation cyclone. We didn't have American flags on the boxes of the stingers and the

01:02:52.000 weapons we were giving them. It was a, it was a very, and here it's very different because we're not

01:02:57.540 just giving them weapons. We're providing the whole, what's called the kill chain for them.

01:03:02.440 You know, it's, it's a, it's a tightly woven web of information services. The weapons by themselves

01:03:07.740 aren't valuable. You know, like the high Mars, for example, isn't valuable unless you also give them

01:03:12.800 the targeting coordinates from our satellites in space. And so, you know, the Ukrainians are pushing

01:03:18.760 the buttons and pulling the triggers and taking the bullets, but it's the Americans who are providing

01:03:24.440 the targets and the intelligence and even taking credit for that counter-offensive last fall.

01:03:30.900 There's a New York time story where they basically described the, it was called the critical moment

01:03:35.840 behind the, it was the Kharkiv counter-offensive where the Ukrainians came to the American generals

01:03:43.020 with their plans and the general said, no, this isn't good enough. Let us like fix it for you.

01:03:46.780 I mean, it's, it's just crazy, you know, and then we, we, and then when I think the obvious

01:03:54.040 downstream effects of this happen, which is that it drives Russia into China's arms,

01:04:02.360 we react with this outrage and surprise. It's like shock. Like we didn't know what's going to happen.

01:04:08.440 It's like, are you kidding? Of course, of course, Russia and China become tighter and tighter allies

01:04:14.540 because China, they see what's happening and they know that if Russia falls here, if that actually

01:04:21.760 could happen, then the gun sites of us neocons and us hawks will be entirely trained on them.

01:04:28.160 So it's in their national interest to help Russia. This was entirely predictable. And we think we're

01:04:33.880 going to prevent them from pursuing their national interest by expressing condemnation and outrage.

01:04:39.760 I mean, like, it's like, it's like, it's like our, it's like our spokespeople and diplomats are

01:04:45.260 children here. I mean, again, dealing with it's the elites and everyone with common sense

01:04:51.800 are looking at each other. Look, I didn't vote for the guy. You did vote for the guy, but I I'm with

01:04:57.800 you. This is nuts. I mean, the elites that are running the, the state department, the Pentagon,

01:05:04.600 the media, all of it, we all look at each other in day to day and go, you know, you and I could fix

01:05:12.060 this. It's not that hard. I know. I know it's, it's, um, it, the state department one is really

01:05:19.620 crazy because their job is diplomacy. You know, it's a lesson conflict. No, their, their, their,

01:05:26.460 their objective is regime change. I mean, they've been conducting these regime change operations

01:05:30.820 and you'd think they did it in Ukraine when, when Biden was the vice president,

01:05:35.000 our state department went in there. Anyway. And, and you know what happened three months later,

01:05:40.960 they put Hunter Biden on the board of, of, uh, Burisma. I'm sure that was just a coincidence.

01:05:46.320 I mean, how do you think that's going to, how do you think that's going to end? I mean, he's got,

01:05:51.040 we now have the records that, uh, three Biden members and the, uh, Hallie, the daughter-in-law,

01:06:00.060 I mean, I don't know what, you know, what information she had that was so valuable in

01:06:05.700 Hong Kong for an energy company, but, uh, and Biden's still out there saying it's not true.

01:06:12.140 Is anything ever going to happen to these guys? Probably, probably not. Um, I'm not saying

01:06:18.460 there's not a lot to find. I'm just saying that I think the media, one of their enormous powers is

01:06:23.280 they get to decide who gets investigated. Yeah. Um, effectively because they will, you know,

01:06:29.880 make you a target and gin up outrage if they don't like you. And if they like you, they'll sweep it

01:06:33.500 under the rug. I mean, I, I don't understand how the Hunter Biden thing isn't a big story. I mean,

01:06:41.340 he's put on the board of a Ukrainian energy company three months after Biden gives the attaboy,

01:06:49.520 gives the approval for basically our backing of a, of a coup there. And it's not like he has energy

01:06:57.780 experience. You know, he's utterly unqualified. He's utterly unqualified for the post. Um, it's

01:07:05.040 just, that that's crazy to me. But once again, uh, the media decides what we care about because they

01:07:11.220 just won't cover it if they don't like it. David, always good to talk to you. Thanks. I hope to,

01:07:16.960 hope to talk to you again. Thank you. Absolutely. Thanks Glenn. Great to see you.

01:07:21.260 Just a reminder. I'd love you to rate and subscribe to the podcast and pass this on to a friend so it

01:07:32.740 can be discovered by other people.

The Glenn Beck Program - March 25, 2023

Ep 178 ｜ David Sacks： The Banking Crisis Is Even WORSE than You Think ｜ The Glenn Beck Podcast

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