00:00:00
Jamal do you hear that freeberg got busted looking at porn on his computer no I did not you got busted
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looking at porn you want to know what it was yeah it was Elon of AES Wall Street
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Journal off that it was I lost it oh man was too good I think he was pleasuring himself to that
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off skin flute what happened you had to go for a quick game of pocka pool how's you oh my God it was it was too exciting
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you were beating the bishop Allison came in and just like wondering what was going on she grabbed my computer she
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looked at it and it was an essay let your winners [Music] ride we open sources to the fans and
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they've just gone crazy [Music] withen all right before we get to Doge we got a little housekeeping a little
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Housey housekeeping you know we're getting into the holiday spirit here it's Episode 205 we're in year 4 and
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we're having a Christmas party it's going to be great the Allin Holiday Spectacular is happening in San
00:01:11
Francisco on Saturday December 7th I think the VIP sold out there's still some tickets left go to allin.com
00:01:19
events and uh if you can't make it to San Francisco I think you can buy a a ticket for $50 on uh on the uh Zoom I
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think we're going to have it on Zoom is that right am do I have my fact straight
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there freeberg yeah there's going to be a live stream thanks to zoom for setting this
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up for us it's kind of interesting they're doing this thing where you could you kind of you know get access to Live
00:01:43
Events so they're helping us get this set up if you want to watch the the stream live on Zoom anything's possible
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it could be spicy true that true that all right listen bestie Elon and bestie V wrote an OP ED a barn burner in the
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Wall Street Journal about Doge the department of government efficiency and they laid it out they want to cut
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overbearing and unnecessary regulation obviously they want to cut unnecessary administrative roles save taxpayers
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money they want to run it by Founders not politicians helping the Trump transition team find a way to hire quote
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a lean team of small government Crusaders team's going to work closely with the White House Office of
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Management and budget here's the plan First Take Aim at 500 billion in annual F Federal expenditures that are
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unauthorized by Congress then fix the government's procurement process by conducting massive audits during
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temporary payment suspensions this is an interesting Playbook that Elon has done
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before so basically suspend all the payments and hey let everybody audit those payments Drive change through
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executive action based on existing legislation rather than passing new laws and two two scotus rulings are going to
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play a major role here West Virginia versus EPA that's when scotus ruled that federal agencies can't impose
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regulations dealing with major economic or policy questions unless Congress authorizes them to do so and Looper
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brigh versus Rondo that's from 2024 and that overturned the Chevron Doctrine we talked about that on a previous episode
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so according to Doge when combined quote these cases suggest that a plethora of current Federal Regulations exceed The
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Authority Congress has granted under the law do will use software and legal experts to create a list of regulations
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that Trump can immediately pause they're going to make some sort of a leaderboard
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Elon said and vake said he would do he suspended his existing podcast I didn't know he
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had a podcast but he's doing a doge cast a doge podcast and so freeberg this has
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been you know a major issue for you you you've been talking about on this podcast
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the unsustainable existential issue for our country is all of the debt we have what are the chances that this is going
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to occur because obviously we all know the machine is going to fight to preserve the machine chances that we are
00:04:18
sitting here in four years and we've seen meaningful Cuts in spending and a meaningful reduction in size of the
00:04:24
government look it it Doge has probably 18 months to do what they can do before the midterms and there's going to be an
00:04:33
inevitable amount of recoil and backlash that's going to arise from the actions that they're going to try and take and
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president Trump's going to try and take uh under the uh recommendations provided
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by Doge um so they need to move fast and aggressively and that's only going to cause The Recoil to be harder and and
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faster there's going to be a ton of litigation obviously everything's going to go to court it's going to be um
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incredibly politicized what is frustrating and challenging to me is that there is nothing that they said
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that doesn't seem obvious and right I don't know how you can politicize the points that they're making put aside
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their party put aside who they are individually put aside how we got here at the end of the day this federal
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government needs to be run more efficiently more effectively it is unfair and it is a tax on every one of
00:05:20
us to have money thrown away to have wasted Capital to have bureaucracy that gets in the way of people being able to
00:05:26
do their jobs it is a tax on all of us and our kids and our future it needs to be fixed if it doesn't get fixed as I've
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said countless times before we are in an arithmatic debt depth spiral there is no
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way out of it so by resolving both the inefficiency reducing the bureaucracy stopping the wasteful spending having
00:05:46
accountability in the or in the government we can actually get the United States another 50 years a 100
00:05:52
years whatever long we want but we were literally in a death spiral leading up to this moment and I have no idea how we
00:05:58
ended up on this time timeline I was over the moon and shocked when I read all of the progress over the last couple
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of weeks and putting this thing together I did not know that this is where we would end up I couldn't be more happy
00:06:09
with what I think is going to happen with Doge and its effect on if not actually making the changes shining a
00:06:15
light on the issues that need to be addressed and I will say it is unfair to Americans for this to be politicized the
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Democrats shouldn't make this a republican issue this is not about Republicans doing damage this is about
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doing the right thing for the government for the country and the Democrats had an
00:06:32
opportunity to own this issue and instead they've chosen to oppose it which makes no sense it is frustrating
00:06:38
and challenging to me as an American to think that this is even a political point this should be a what's right for
00:06:43
America point it's almost like we're going to war war with ourselves with our bureaucracy with the morass that's been
00:06:49
built up over the last couple of decades and I'm thrilled that this is happening
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and frankly put the put the people aside maybe it's the fact that you need people
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that are as outspoken as challenging as difficult as these two particular individuals are going to run this group
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but that might be what it takes for it to happen in the small 18mon window that they have so I don't know that's my rant
00:07:09
on it yeah great rant and uh we had a Milton fredman clip go viral and he spoke exactly about his positions on
00:07:17
what he would eliminate departments like agriculture Commerce education let's just play that clip and then there was
00:07:23
obviously the Malay interview by Lex Freeman earlier this week keep them or abolish them Department of Agriculture
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abolish gone Department of Commerce abolish gone Department of Defense keep keep it Department of Education abolish
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gone energy abolish Health and Human Services there is room for some public health activities to prevent uh uh
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contagion will'll eliminate half of the Department of Health and Human Service okay one half there we go Housing and
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Urban Development down done that's gone Department of the Interior the problem there is you first have to sell off all
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the land that the government owns but that's what you should do it could be done pretty quickly you should do
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Department of Justice oh yes keep that one keep that one labor no gone State keep keep it Transportation Gone Gone
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the treasury you have to keep it to collect taxes all right collect taxes through the treasury sax you see that
00:08:22
clip you see the activity going on with Doge do you think that the machine will allow what Milton Freeman is describing
00:08:31
there what Javier Malay is doing in Argentina and what Elon is proposing with Doge do you think the machine's
00:08:38
going to allow you know the wholesale deleting of Department of Agriculture Department of Education at a
00:08:47
federal level and move all that stuff to the states what do you think's going to
00:08:50
happen here and how hard will the machine fight back against this in your mind because hey you might have some
00:08:58
Republicans some Democrats they fought really hard to get jobs to get subsidies to put in factories whatever from the
00:09:04
federal government are they going to just give that all back the clip is from 1998 by the way Sach your
00:09:10
thoughts well that Milton Freeman clip as great as it is I mean it really is outstanding is setting expectations a
00:09:18
little bit too high here I mean we're not going to be able to wipe out entire major Departments of the government that
00:09:23
are cabinet level positions I don't think that's in the cards what mil Freeman's basically describing as a
00:09:28
night Watchman State and I don't think we're going to get back to that however if you look right now at the opinions on
00:09:38
the Legacy Media msdnc CNN all that kind of stuff they are forecasting that doge
00:09:44
is going to amount to nothing they're basically saying that the powers that be in Washington are going to rejected
00:09:49
completely there's somehow going to be a falling out between Elon and djt they're
00:09:53
just very cynical gjt and then you have people who are not necessarily dismissive in that way in
00:10:03
the media but just kind of longtime Wasington insiders who feel like they've seen it all before and nothing ever
00:10:09
happens and so they're just very jaded and cynical so I would say that you know again I wouldn't have the expectations
00:10:15
of the Milton Freeman level but I think that the expectations for Doge right now
00:10:18
are being set incredibly Low by the media and by the Washington insiders and I think there are good reasons to
00:10:25
believe that the results will surpass those those low expectations number one is you've got
00:10:33
Elon Musk running this thing with fa and Elon understands better than anybody the
00:10:38
impact of delarius regulations on business so he can really put a microscope on that he's got the largest
00:10:45
speech platform in the world with x the largest account on X and he's also built
00:10:50
a get out the vote operation that he funded in the last election that he's promised to keep around and potentially
00:10:58
expand so his influence hopefully is not going anywhere he's going to be able to
00:11:03
keep using that to help keep politicians on side here right yeah so that's number
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one is no one's ever made money betting against Elon Musk and I don't expect that to start right now number two is
00:11:17
you got V who is co-head with Elon of this thing and I think he's a perfect partner for Elon because V first of all
00:11:26
he's a brilliant guy with a lot of success in business but he's also a Harvard trained lawyer he's a brilliant
00:11:31
legal mind and I think you could see in that oped I suspect the parts that were citing all those Court decisions were
00:11:38
his influence and so they figured out a legal road map here it's not just a matter of kind of going to Congress and
00:11:46
hoping Congress acts they've got a way here sequentially to do this through the executive branch through executive
00:11:52
orders going through the court system they've kind of got a game plan here that's not entirely reliant on
00:11:57
legislation so I think think the's influence and and sort of legal strategic mind is a is a big asset here
00:12:07
and then I think the third reason to be optimistic is just the fact that this was printed on the Wall Street Journal
00:12:12
oped page is suggestive in and of itself what this shows is that this Doge effort
00:12:20
is I think uniting both the kind of populist reformers and the establishment types within the party if Elon and aake
00:12:29
were're trying to get a mandate for no more Forever War I don't think the Wall Street Journal will be publishing that
00:12:34
right just would not happen so there are are reasons to believe that this will not actually divide the party that the
00:12:40
party could building yeah could be yeah now look every congressman and every Senator is still going to advocate for
00:12:48
their pork barrel project in their District or their state and it's going to be very hard to push back on that
00:12:53
however you could imagine a process like we had with the base closure commission
00:12:57
when the United States needed to close a bunch of military bases and they created
00:13:01
a an outside commission to recommend the cuts and everyone kind of shared the pain equally maybe do could somehow play
00:13:08
into that for trade a bit yeah so I'm not saying it's going to be perfect but I do think that if
00:13:14
Republicans share a principle across again both these establishment and the populace side it would be in reducing
00:13:22
unnecessary regulation and the number of regulators needed the number of government employees needed to enforce
00:13:29
all those regulations so I'm hopeful that they'll be able to get something done within the party and since the
00:13:34
Republicans have the trifecta if they've got Trump's leadership and they've got the leadership of the Senate and House
00:13:41
backing it I think they'll be able to get something done again it's not GNA be it's not gonna be Milton Freeman level
00:13:46
but I'm optimistic they'll get something good and important done I think the easiest thing for them to get done with
00:13:52
doge is the naming the shaming the auditing the transparency of what we're actually spending because so many of the
00:13:59
audits Jam off are just not completed people don't know what's being spent and if you show Americans a $112,000 hammer
00:14:07
or people with job titles not coming into the office or coming into the office one day a week one day a month
00:14:14
that's going to infuriate taxpayers and I think there's a very easy way to navigate all this you just create the
00:14:19
leaderboard and you not only shame people who are wasting our tax dollars you celebrate the people who are heroes
00:14:26
Who start showing frugality and cost and they're going to do this with a leaderboard of the heroes and the goats
00:14:32
this could be the unifying not just the Republican party as as sax is pointing out shof I think this could unify the
00:14:38
whole country is there anybody paying taxes that wants to see money wasted that wants to see us pay people high
00:14:44
salaries to not come to work shath what's your take on the sequence of events here what are easy layups that
00:14:52
they could actually get done and then where is the machine going to fight and try to stop this thing I think you
00:15:00
are highlighting something that they can do right away which I think is very powerful which is just using these
00:15:05
distribution channels that Elon has now to create a massive layer of accountability I do think that Sunshine
00:15:14
is a really incredible disinfectant I think the best way that they could start if possible is to stop paying their
00:15:23
vendors until you actually have some amount of accounting to figure out as you said how many $600 soap dispensers
00:15:30
are actually being bought and sold now that kind of whatever you want to call that corruption or grift it's not going
00:15:37
to account for hundreds of billions or trillions of dollars but I do think that it is a very moral and symbolic win that
00:15:46
says we're going we're going to start to get much more rational and it starts to
00:15:52
allow the average American to actually feel like they have a little bit of control and they have a more vested
00:15:58
interest in how the governments M but I want to I actually want to take a step back for a
00:16:04
second and before I talk about what Doge can do I just want to highlight something that's been going on in
00:16:10
California because I think it it explains a lot in California and I'm just going to read this St because it's
00:16:15
incredible the regulatory burden in California as a state from 1997 to 2015 this is when the data is available that
00:16:25
I found has increased by almost 50% as of May of 2022 there are almost 61,000 individual regulations in the
00:16:39
state of California so what does that mean and where does it come from and Nick if you can just put out the tweet
00:16:46
it has happened over a period of time in which the government has been the absolute singular source of employment
00:16:58
in the state and we talked about this before where this is also a problem at the
00:17:04
federal level when you look at GDP and job growth because it looks like a lot of these jobs are actually fake
00:17:10
manufactured government type jobs so why is this a problem you've seen in California the issue that we have is
00:17:16
that if you have a growth in the number of employees in this case in California all the job
00:17:22
growth in recent memory has been state employees what is the byproduct regulations go up what is the byproduct
00:17:30
of that there are actually no private sector jobs and more to the point the private sector flees so now let's bubble
00:17:36
that up and look at the federal government Nick if you want to just show that chart that I that I sent you what
00:17:42
is incredible jcal is that the more people are hired by the government lo and behold what do you see
00:17:49
the number of regulations issued by federal agencies has just continued unabated year in year out you cannot run
00:17:58
a country like this so these accumulate right Congress is doing less and less of a job actually
00:18:07
trying to frame how the country should work that white space is filled in as freeberg said by these federal agencies
00:18:14
it compounds and accumulates this is not replacing laws none of these regulations
00:18:19
have expiry dates and so as a result I think what you probably have is an incredible restraint on the US economy I
00:18:28
think that the US economy could be growing at four or 5% but the reason that it doesn't grow
00:18:35
at four or 5% is in that one single chart it is impossible to be able to live up to your economic potential when
00:18:43
you have this burden on your neck so I think the real opportunity for doge is to basically do whatever it needs to do
00:18:52
using the law to wipe as many of these regulations off the books we are better cutting them all to zero and then
00:19:01
finding the ones we really need and then repassing those then we are going at this peace meal and there's some incred
00:19:09
there's some incredible ideas by the way that this creates Nick I don't know if you can find this tweet but Doge asked
00:19:15
what people think of the IRS and there was an enormous amount of activity that essentially said give us a
00:19:22
flat tax and wipe out the tax code and people were very flexible in the of tax that they were willing to pay
00:19:30
but could you imagine the simplification in the tax code and the implications of that I was in Singapore
00:19:36
by the way 10 days ago when I started my trip Nick beep out the name of the person I'm about to say but I had a long
00:19:42
meeting with who you know is there and I was asking him the complexity of dealing with taxes he's
00:19:51
like what do you mean we don't we pay a very simple tax system there's no capital gains in Singapore and so as a
00:19:56
result our filing requirements are diim small but as a result people like him meaning great entrepreneurs can spend
00:20:05
all their time thinking about what to build not how not tax optimization exactly not or how to account for it so
00:20:12
could you imagine if these guys basically use Doge as a mechanism to shrink the tax code create a flat tax
00:20:19
potentially I know that that has to be passed by Congress I understand that but the idea of just cutting this all the
00:20:27
way down and then finding through that process what you actually need I think can find America 100 200 basis points of
00:20:36
GDP growth it could be an economic Renaissance I mean just to build on that cutting all the regulations to zero you
00:20:42
might have throw out some babies in the bath water so why not put a clock on them and just say whenever this was
00:20:48
enacted plus five years and then it rolls off or plus two years whatever number of months and then you could have
00:20:55
them Cham rolling off every month to be but it I think that's a good idea but Jal I think you first have to cancel all
00:21:03
these regulations and then say whatever we need we will reenact P your point on a five-year shock clock that then has to
00:21:10
be renewed in a new Congressional period And I think that that's extremely healthy well because you know what
00:21:16
people die paradigms shift and then nobody even remembers these regulations you have to do archaeology to figure out
00:21:22
who created this what was the intent and you would never do that you would never
00:21:26
live Sachs with all of these rules forever just one last comment In fairness to these government
00:21:33
employees the one thing is that it's not their fault right meaning in the sense that they were hired into a regime where
00:21:40
the incentive was to regulate so that you had things to oversee and so they did their job in fact I would say they
00:21:48
did their job incredibly well but the point is that now we need to Pivot for them to do a totally different job well
00:21:53
chath I'll hand this over to free freeberg freeberg if you were to get R rid of regulations as somebody working
00:22:00
in the government you might work your way out of a job so the incentive is completely perverse and revers to what
00:22:07
we actually need in the country Which is less regulation more thoughtful regulation and some process by taking
00:22:12
these things on and off the books and adapting them to reality yeah this is where I
00:22:18
think I think we've talked about this many many times in the past but like all organizations have a natural tendency to
00:22:24
grow they they want to grow they're not yes like find me one nonprofit or find me one University or find me one company
00:22:32
or one government agency that's ever said my job is to shrink myself it's never happened so why does that happen
00:22:40
well if you look at the like daytoday operating role of each individual over time like all individuals they want to
00:22:47
do more they want to have a bigger impact they want to have more scale they want to have more leverage so there's
00:22:52
this natural set of incentives that drives a lot of choices and operating procedures on the ground that create
00:22:57
more more scale more leverage and drive more hiring everyone wants to become a manager of people they don't want to
00:23:04
just be doing the same IC job forever individual contributor job forever so if they want to be a manager they got to
00:23:10
find more stuff to do and then they got to hire people to do that stuff so all of these organizations whether again and
00:23:15
we've all been on Boards of nonprofits I'm sure and we've all been involved in this sort of thing there's always this
00:23:20
like incentive to raise more Capital to hire more people to do more stuff that sort of it's really unclear until you
00:23:26
really dig into the psychology of each individual a person working there why this is happening I don't think that the
00:23:31
federal government is any different each of these people feel they want to be more important they want to have a
00:23:36
bigger role they want to have a bigger impact J if your job direct directionally is to regulate then what's
00:23:44
the scaler on regulation more regulation so therefore to do more you have to regulate more there's no regulator that
00:23:51
says I want to regulate less over time because we've created a system that's one directional so you have to have
00:23:57
these resets if you don't have them naturally they're going to happen unnaturally in the form of social unrest
00:24:03
and breakdowns of the economy and collapse of social structures all these other things that happen way way down or
00:24:08
as chamat is pointing out in California in the economic structure of California which I think is happening on a kind of
00:24:14
national scale because of the outsid role the federal government plays in our national economy here today so so you
00:24:20
have to have these unnatural forces come in and and do this Readjustment from time to time otherwise it's just going
00:24:26
to break on its own and mle in Argentina has basically I don't know a year or an
00:24:33
18-month head start on us and has been doing this he did a great podcast with Lex
00:24:38
pedman they translated it actually they dubbed it which is kind of interesting technology and in this discussion they
00:24:47
talked about reducing the Ministries agencies from 20 to 8 they fired 50,000 government workers 15% of the total
00:24:54
Workforce there were 341,000 when he started they implemented daily deregulation process to remove
00:25:01
inefficient policies so they just do that day in and day out they ended discretionary payments to provinces and
00:25:07
cities that restored Market driven utility prices no more subsidies yada yada y Right Down the Line sax your
00:25:14
thoughts on how many months it will take to do this and there's this this discussion
00:25:21
and I don't know if that's from inside the Trump administration of hey we got to get this done in 18 months we got to
00:25:27
get this done in 18 months What can you tell us about the the sense of urgency about getting this done
00:25:32
quickly and and why that's occurring well I think Elon and V have announced that Doge will be sunsetting or
00:25:41
disbanding at the 250th anniversary of America which would be July 4th of 2026 so they've only given themselves
00:25:51
about what's that 18 months yep which kind of makes sense right that's leading into the midterms right right exactly
00:25:58
you tend to have the most momentum coming off an election like this one where you have the trifecta so I think
00:26:05
it makes a lot of sense that they're going to be able to have the greatest impact let's say in the first year after
00:26:10
the new president of Congress gets sworn in how do you get Democrats in on this sax how do you push them to join the
00:26:18
party to to join the movement to be more efficient to be more transparent is there a possibility for us to get some
00:26:26
coordination here with the other side or no you might be able to get some support of
00:26:30
particular Democrats on particular things I don't want to say that it's not possible difficult but not not
00:26:38
impossible but look I think what melee has done in Argentina is remarkable I mean that was a country that was a total
00:26:45
basket case inflation was out of control it's already because of the cuts he's made they now have a more normal
00:26:52
inflation rate and they've gone from basically being uninvestable to investable as as a country now the
00:27:00
United States is not the basket case that Argentina is but we are on an unsustainable fiscal trajectory doge is
00:27:07
also not going to have the power that mle has it's not going to have the degrees of freedom to act but we also
00:27:12
don't have as big a problem what we need to do is just bend our fiscal curve from
00:27:17
being unsustainable to being sustainable and if we can do that it'll have a huge
00:27:21
impact on the economy specifically what we saw in the last election the thing that probably hurt the Democrat the most
00:27:29
was inflation voters clearly do not like inflation they do not like the diminishment of their purchasing power
00:27:36
but how do you stop inflation you have to raise interest rates and that's not good either because that raises the cost
00:27:41
of a mortgage that raises the cost of a car payment is bad for investment right because if interest rates are higher
00:27:48
then that means the discount rate on stocks and real estate on every investment class basically is higher and
00:27:56
the hurdle rate for Investments higher so high interest rates are also bad for the economy so how do you get out of
00:28:01
that box where you either have high inflation or high interest rates the only way is to bend the fiscal curve to
00:28:07
that more sustainable path and if you can and if you can do that the bond markets will actually give you credit
00:28:13
for it in advance because they know because they know that they're not GNA be flooded with the need to keep funding
00:28:21
all of this US Government debt so we either get to kind of you know startups have the saying by being either default
00:28:28
alive or default Dead We either get to default sustainable or default unsustainable right now we're
00:28:33
unsustainable the bond markets know it inflation remains persistently high around 3% the FED has not been able to
00:28:40
cut interest rates the way that they expected to remember the markets were expecting seven Cuts this year we got
00:28:47
basically three we got a 50 and a 25 so it's just hasn't been the cuts that people were expecting and that's because
00:28:52
inflation hasn't come down as much as people thought so if Doge working with the rest of the government om the
00:29:00
treasury Congress executive orders can now convince the markets that the US Financial picture is more sustainable
00:29:07
we'll get credit for that interest rates will come down and that'll lead to a boom in the economy so it's all win-win
00:29:14
if they can pull this off prre any final thoughts here before we move on from Doge wishing Elon and v as much success
00:29:23
as possible we've really I mean everybody should be rooting for this you want to give us your final
00:29:30
thoughts I feel like America is Neo from The Matrix where there was like a thousand bullets being shot at America
00:29:39
and we like literally had to dodge every single one of them in order to get to this this point I again I am so shocked
00:29:47
and surprised in a positive way that we ended up on this particular timeline look everything had to go the way it
00:29:54
went for this to have happened Biden decided to run for re-election Biden stayed in too long they didn't run a
00:30:01
primary they put kamla in Elon got off the fences switch parties Elon decided to throw 100 million bucks at the
00:30:08
problem Elon bought Twitter China had a real estate bubble I mean you can go down the list of things
00:30:15
that had to go right for us to get to this very moment where a small group of people have recognized the fiscal death
00:30:23
spiral that the United States federal government has been in and have the Authority and the capacity and the skill
00:30:31
to be able to go and execute against a solution I have no idea how this could have been architected maybe saak knew
00:30:38
all along and I convinced him two years ago that this was how things had to go and he's been designing it like emper
00:30:44
talking about Ray doio in the end of the empire for three years podcast maybe you
00:30:48
did it freeberg we remember when when we talked with doo about this he's like been hand and also around the the
00:30:56
relationship with China which I think this is all very tightly related we may have dodged a lot of bullets and and if
00:31:03
the United States can get its house in order reduce federal spending while increasing um economic activity uh it
00:31:10
can be a tremendous unlock for the US and for world pieace so because again I think that conflict arises when when we
00:31:17
don't have our own fiscal housing order and so I feel very positive more more surprised and positive than I was a year
00:31:25
ago six months ago it's just amazing we're on this timeline and I do think the United States as Neo dodged a lot of
00:31:30
bullets here absolutely fre I told you everything was proceeding as I had foreseen the emperor you know what
00:31:37
happened to the tenure and Elon and VI wrote that essay I actually don't what happened yields contracted by five basis
00:31:43
points you know what the value of that is couple billion 15 billion per year yeah yeah so so I think that it was
00:31:51
probably a hundred billion doll essay just writing it I think you will find that this doge is quite
00:32:02
operational I mean it I think it's got a chance I mean if you I just wish it weren't political right I I want I want
00:32:09
all I want all Americans and Democrats to stand up and say this is the right thing for the United States forget about
00:32:15
the fact the problem the essay saved us a 100 billion just the essay here you're going to have to be very
00:32:25
strategic true about how they detailed what they're doing pick the the Doge team's just going to have to be very
00:32:31
strategic to pick things that are consensus building that don't make people feel like this is going to grind
00:32:38
the poor more and make the rich richer that's the expectation that's going to be the negative framing on this I
00:32:44
predict which is just a bunch of Rich guys making Cuts talking their books making cuts for things that are their
00:32:50
pet projects their Investments they have to come out and not make it that they have to make it here's inefficiency
00:32:56
here's inefficiency here's inefficiency and a great way to do that would be to say the efficiency gains and the tax
00:33:02
cuts are going to go to people making let's say under $250,000 these are not and these cuts
00:33:07
are not being made just to make the rich richer that's going to be the framing you think that don't you think
00:33:13
that that's going to happen no matter what what which part of it that they're going to say that no matter what so I I
00:33:19
actually disagree with the first part of what you said I agree with you that the
00:33:23
media the mainstream media will try to characterize this as hurting the poor agree and I'm not sure yet whether still
00:33:30
or not yeah but I think the first part I disagree with is I don't think they should operate towards consensus I think
00:33:36
that they should do what's right well you could do what's right and you could start with things that are the most
00:33:41
wasteful like if you start cutting kids lunches or pel grants or you start cutting people's jobs to in healthcare
00:33:51
education that people perceive are helping people I think you're going to just feed into this narrative that it's
00:33:58
a way to cut taxes on rich people and you know what you do need to build consensus how does that cut taxes on
00:34:04
rich people if you cut regulations and a bunch of our companies benefit from it just to be self-aware the framing is
00:34:13
already that this is an effort for companies that we invest in to have less regulation to make the equity holders in
00:34:22
those companies more Rich you have to make sure that the hold on have to make sure the saving is for all Americans and
00:34:29
that all Americans benefit from it and the way they benefit it the best framing they could do is your taxes are going to
00:34:34
be lower because you're not wasting your tax dollars if they can keep to that not
00:34:39
hey we're moving regulations so that our companies I to be honest biger being a hairdresser requires more regulation
00:34:45
than being any one of most of my companies so I actually think it benefit I think it benefits other people way way
00:34:52
more than it benefits me and you have to show it is my point show it that's the point is you have to show people that
00:34:58
you're doing this for everybody not just for the people on this podcast and our friends that's going to be the key what
00:35:04
sham just said is so important there's a great interview I've mentioned this in the past between Tim Ferris and Charles
00:35:10
KO from a couple years ago where he brings up this exact example yes about how regulatory burdens make it difficult
00:35:16
for women to become hairdressers it's like $7,000 so they don't have the capital to do that because of the
00:35:21
regulatory burden to get there think about building building your home or you know like let's say you want to change
00:35:27
put shower in your bathroom change the shower in your bathroom you don't want to spend $115,000 on all the permitting
00:35:33
regulatory stuff to make that happen it's going to unlock value for everyone that's a small example of kind of a
00:35:38
regulatory problem but this benefits everyone and the cost of Transportation will come to communicate that you have
00:35:44
to be able to communicate that and that's where using platform but show up perfect job of communicating this to
00:35:53
people and that's the Playbook freeberg that's my point people are going to fight this you have to convince them you
00:35:59
have to show them that this is helping every can we just agree that there okay but that's different than how you
00:36:04
started you said only work on consensus projects I age no I didn't say that I I think you have to highlight those do
00:36:10
them first I said do those first make sure that people understand this is to save them money I'm not saying that you
00:36:15
don't change regulations for spaceships and self-driving cars as well but you have to make sure you show people that
00:36:22
this can benefit them or else they're going to just fight it and and that's it's going to be the whole all this
00:36:27
effort will be for not if you if you get a bunch of Republicans sacks Who start fighting this and you have a splintering
00:36:33
in your party because they feel like this is in helping their local constituents this whole thing could be
00:36:38
for not that that's my that story that you told is going to be told by the Legacy Media and all the haters and the
00:36:46
enemies regardless of what Elon do I don't think so I think win people over you show people you show people
00:36:56
haters you're not going you show I'm talking about the public who votes we already won the election now is the time
00:37:01
to implement when you show people $22,000 you know Hammers and wasted money you will get a 100% of Americans
00:37:09
backing this not 60 minut been doing that for 30 years nothing's happened we got to just act now yeah act and bring
00:37:16
people along with Communications I mean if you got if your communicate poorly great go for it yeah I'm not saying that
00:37:22
communication isn't part of the job in fact this whole conversation started by us talking about an oped
00:37:28
that Elon and V wrote correct they lay out in which they're laying out their objectives and they're doing podcasts
00:37:34
and Elon has the biggest platform in the world and biggest following so I just don't think communication is going to be
00:37:40
the problem but you're also not going to be able to convince everyone and you know we've already won the election and
00:37:45
now is the time to figure out very strategically how to implement as much as possible be humble by two million
00:37:51
votes keep it in mind you have to bring everybody along okay you know what if the media was fair it would have been 20
00:37:56
million votes for Trump to have won under these circumstances and he won the trifecta it's impressive nobody saying
00:38:05
it's not minimize it I'm not minimizing it I'm just saying be aware there's 74 million people who are rooting against
00:38:11
Trump and I think getting some them on that's not true that's not true I think there's a decent number of people who
00:38:17
are probably very upset that you know Trump won just like last time they were upset that Biden won including all
00:38:24
Americans in this is the most virtuous thing you can do I think it's der I think I think it's deranged the idea
00:38:31
that 74 million people are actually rooting against him I don't think that that's true I they feel good that they
00:38:36
lost people don't feel good about losing bringing those people on board is virtuous dude there's already a shi in
00:38:43
the country have you seen the Trump Dance I mean there's been such a sh let's see it let's see it I'm not going
00:38:49
to do it right now but there's been such a huge Vibe shift the energy is so optimistic right now
00:38:58
the energy right now is incredible and I think people are feeling much more optimistic can you imagine what a downer
00:39:03
would have be if like we were expecting president KLA Harris to take the oath of
00:39:08
office it would be a downer it would be a downer to me if they were still pushing a 7.2 trillion dollar federal
00:39:14
budget next year it that would be a downer and by the way I think that there's a deeply linked relationship
00:39:20
between social issues economic issues political policies and foreign conflict they all seem like they're four
00:39:28
different things but they're so tightly interwound and it's interesting how everything kind of moves together with
00:39:34
the shift in who ended up winning winning this election cycle and I think it really speaks to the relationship
00:39:41
between the four well by the way there's a great meme that was floating around where it showed a photo of trump Elon
00:39:50
Bobby Kennedy and tulsey Gabbert and it said that all four of the field used to be Democrats yep yep you know demat in
00:39:57
it I tweeted that it used it used to be that that Democrats were Progressive Progressive means progress looking
00:40:04
forward and the last decade the last couple years in particular I think a lot of people that I know that are former
00:40:10
Democrats jamat you can speak for yourself feel like the Democrats stopped looking forward and it was all about
00:40:16
trying to like and grievance and victim culture and all of a sudden you've got guys like
00:40:22
Elon promoting themselves as Republicans highlighting that it's all the this is the party that looks forward this is the
00:40:28
party that drives progress it's an amazing shift I don't know if there's been anything like it that's happened this
00:40:34
quickly I voted more to make America great again than I did vote for being a republican I I think that the Republican
00:40:42
party right totally is is less important than it's ever been and I think Maga is more
00:40:47
important than it's ever been I agree and I'd say the biggest RIS of the whole agenda probably is not the Democrats
00:40:54
it's actually some of these old Bulls in Cong who are anti- Maga for some reason Trump
00:41:02
is the one who just won the trifecta he just won this big election if you stick with the old Republican message you're
00:41:08
just a shorefire loser so give Trump his due as the leader of the party realize it's now a magga party and let's get
00:41:16
some things done if the reform agenda fails to be frank it probably is not going to be the
00:41:22
Democrats it's probably going to be these holdouts in the Republican party for it yeah yeah yeah that was my
00:41:29
question earlier I think I asked it twice I didn't get anybody to engage in it how do you convince them how are they
00:41:34
being brought on board to this if they have all this pork barrel spending is there a strategy there or do you have a
00:41:39
strategy I think saak laid it out which is that if you use the combination of the carrot and the stick I think the
00:41:45
carrot is creating transparency and I think the other part of the carrot is you'll have now an
00:41:54
extremely well-funded pack that can support people who are on board with this agenda but the stick is if you
00:42:02
don't I think that if Elon makes this a really concerted long-term part of his strategy then I think you should run
00:42:08
candidates who actually are aligned with the agenda that the make America great again movement wants so I think that's
00:42:16
the carrot and stick Jason which is like some of these old Republicans will have
00:42:19
to decide do I basically help invest in a renewal of the American Spirit or do I
00:42:25
keep pushing back because I like the way it was and want to go to war and I want
00:42:29
to Cozy up to these lobbyists I think those folks are going to have a very tough four and eight years because I
00:42:35
think you'll see a bunch of magga candidates rising up to run against them everywhere in the United States as you
00:42:41
can see my Young Apprentice your friends have failed now witness the Firepower of
00:42:47
this fully armed and operational battle station man I said be humble like three times it's none of it sinking in huh no
00:42:56
I just explained I explained the risk I I've been very clear you're not going to
00:43:00
get Milton Freeman okay you're not going to get Javier Malay what we can hopefully get is a bending of the curve
00:43:05
toward sustainable I'm setting my expectations to be realistic okay I mean breaking
00:43:11
even would be great if we do just weren't adding to the debt that would be amazing look if if if the federal budget
00:43:18
gets to three trillion and regulation gets cut if you get 50% of the regulation in federal
00:43:28
agencies cut I think you unleash an economic Sonic Boom I'm all in I think it's the greatest thing that could ever
00:43:35
happen my gosh could you imagine America clocking in regat I mean how much are you guys stuck with companies zero I'm
00:43:44
dealing with regulatory the regulatory stuff is brutal man it's like it's legit brain like melting sh tell me your
00:43:53
number one regulatory frustration we could go around the horn this is a topic actually I don't have any I think I'm
00:43:59
very blessed to work in an industry that's very light with regulation I think it affects many many other
00:44:04
industries that if they were Unleashed could contribute to American G Construction I also think regulations
00:44:12
are very regressive because they touch poor and middle inome people way more than it touch folks like me rip these
00:44:20
regulations out two regulations that do affect you crypto regulation and capital
00:44:26
formation both of those things are they haven't hurt me they haven't hurt me this my point you but they definitely
00:44:32
are the economy right I can snap a finger and raise a couple billion dollars that is not it's so I'm in a
00:44:37
unique position and I and I recognize that what is much harder is if you're trying to be an electrician if you're
00:44:44
trying to be a hairdresser if you're trying to be a massage therapist when you have to spend 15 20 30% of your
00:44:49
salary on lure why totally why do we need these stupid rules if if you're a person that's trying to like construct
00:44:57
home why does it take six and eight weeks to get permits approved why and there are no good answers for these
00:45:03
things so forget about me like it doesn't matter about me but the mainline part of the United States economy as I
00:45:09
said before is a coiled spring if you get rid of those regulations it disproportionately impacts middle inome
00:45:17
and lower middle inome jobs this is why if you if you see if you see GDP if America clocks in GDP at four to four
00:45:25
and a half percent watch out folks Sonic Boom watch out I'll give you two really simple ones
00:45:32
allowing everybody in the United States to participate in company formation would change everything 95% of the
00:45:40
company cannot participate in investing in startups or any you know new compan czy the accreditation L I think more
00:45:50
massive freedom to operate just freedom to do stuff you want that's what it is I
00:45:53
mean you're free to go to Vegas and gamble you're free to you know play you know online you're free to buy Bitcoin
00:46:01
you're not free to buy you are free to buy Bitcoin you can buy Bitcoin you can yeah but you're not afraid to create a
00:46:06
token right there should be some clear path of Regulation I think there's many more traditional forms of economic
00:46:13
growth that we can have before we need to make icos legal and easier I I want to say something I think that the person
00:46:20
that runs for governor in California should commit to cutting those 65,000 regulations down to 10,000 as
00:46:30
needed to replacing the DMV with a digital app and to cut taxes to near zero and to create school choice whoever
00:46:40
does that incredible will create a Renaissance in California it's the fifth largest economy in the world folks and
00:46:47
it can be a bellweather for the rest of the world well you know there there's a lot of scuttlebutt online that Nicole
00:46:52
Shanahan's going to run for governor of California and I'd be in favor of that I
00:46:58
would say that of all the political personalities involved in the election over the past year she gets my most
00:47:05
improved award I remember when like Bobby named her to his ticket I was a little bit skeptical of that choice
00:47:11
because of some of the causes that she had identified with or donated to in the past but she I think has ended up being
00:47:18
a star she's pretty based she's a star yeah totally I mean she's she's red pilled and ended up
00:47:23
supporting Maha and Maga and I don't think we're going to get anyone better in California so if she's willing to do
00:47:31
it and take it on that'd be awesome SX what about you you don't want you don't want that that
00:47:36
Mansion that'd be a significant downgrade for me I about to say you took the joke right out before I got to it
00:47:42
damn it that was such an easy one yeah you could live in the governor's mansion also known as smer than your guest
00:47:49
house that would be your backup man cave well actually that's happened people have in New York I remember one of the
00:47:55
governors was like yeah yeah you know I'm good I don't need to live in the Mansion where do you want to go next
00:48:00
boys we we have other things on the docket would you like to go to our war correspondent would you like to go
00:48:06
Chrome Google breakup would you like to go Nvidia where would you like to go World War III I think is important sax
00:48:11
you put World War II on the docket would you like to te it up for us yeah sure well there's a several events that have
00:48:18
happened in reasonably close succession the the first thing to understand is what's happening on the ground in
00:48:23
Ukraine the ukrainians been losing territory and Accel ating Pace there's an excellent graphic in the New York
00:48:29
Times that I'll put on the screen that shows this is not a stalemate remember I said on this
00:48:34
podcast six months or a year ago that it was no longer a stalemate it was a war of attrition in which the ukrainians
00:48:40
were now losing and every single month now the Russians are taking more and more territory again the curve is
00:48:46
accelerating we had all invest in a business who had a growth curve that looked like this so not good news for
00:48:50
the ukrainians in response to that I think that's fundamentally the condition on the ground that's created the next
00:48:56
set of actions which is the Biden Administration finally approved the use of longrange missiles attack's missiles
00:49:03
storm Shadows to hit territory deep inside of Russia the Russians believe and I don't know whether this is true or
00:49:10
not but what they say is that those weapons cannot be operated without Americans or
00:49:16
British operators being there to you know they're too complicated for the ukrainians just to use on their own so
00:49:22
they the Russians view this as not just a direct attack on their Homeland on their motherland but also a direct
00:49:31
involvement by the NATO allies United States and Britain in the war and that is a big
00:49:39
escalation you know a lot of people say that the Russians have all these red lines we keep Crossing them and they
00:49:45
don't do anything that's not true if you actually listen to what the Russians have said there's only been two red
00:49:49
lines the first red line was they said they would not accept NATO expanding to Ukraine and they proved their
00:49:57
seriousness on that issue by invading Ukraine in February of 2022 the second red line is they said that they would
00:50:04
not accept American long-range missiles being used to Target inside of Russia and that line has now been crossed so
00:50:12
this leads us to the next set of events which is Russia just used what may be some people are saying it's an ICBM but
00:50:21
it probably is more likely to be not an InterContinental but an intermediate range
00:50:27
ballistic missile that hit a Ukrainian City and it's obviously it didn't carry a nuclear payload but it's the type of
00:50:36
of ballistic missile that is used to carry nuclear weapons there are a couple of features of this that I think are
00:50:43
really important number one it's a Hypersonic missile it hit the target at something like mach 10 what that means
00:50:49
is that it just can't be intercepted it's too fast the the west and the United States in particular does not as
00:50:55
far as we know have a tech techology to intercept a Hypersonic missile like that
00:50:59
the second is that it had what's called a MV Warhead or payload MV is multiple independently targeted re-entry Vehicles
00:51:10
basically what it means is the Warhead splits up right when it gets close to the ground it splits into six separate
00:51:16
warheads and the reason for this is I understand it is diabolical again it's just if you're launching nuclear weapon
00:51:23
it just makes it that much harder to now intercept it because now you've got six
00:51:27
Warheads hitting you instead of just one so I mean as I understand a missile like this
00:51:33
has never been used before and what the Russians are doing obviously is sending us a signal and what that message is is
00:51:40
that they're saying we have the means to hit any European city or any European asset with a Hypersonic missile that you
00:51:49
can't stop that may or may not have a nuclear warhead attached to it and is it's just a way of them expressing their
00:51:58
seriousness and displeasure and and and reacting to and escalating in response to the fact that we are now allowing
00:52:05
Western missiles to be hitting targets deep inside of Russia so the bottom line is this war is escalating it's
00:52:11
escalating nowhere good and at some point soon yeah it's really we're gonna have to get off of this escalatory
00:52:18
ladder to or we're going to end up in a really disastrous place and just the last final point is it's absolutely
00:52:25
remarkable that Biden decided to take us to this place with what just 6 weeks left in his term completely I mean as a
00:52:33
lame duck president what is his mandate for doing that for taking this extraordinary risk on behalf of the
00:52:39
country the voters just voted for Trump who made it really clear he wanted to end the war and Biden and his team have
00:52:46
unilaterally now escalated this war they did it without consulting with Trump's team at least that's what was publicly
00:52:52
reported is there was no briefing set up for Trump's transition team so you have here Biden his team taking a
00:52:59
unilateral action to expand and escalate this war even when he's a lame duck president and the question you have to
00:53:05
ask is why what is the point of this well I think it's just completely deranged because it's not just that for
00:53:11
forget Biden and Trump for a second if you take a step back what was voted in was to end this war and for the United
00:53:21
States to get our hands out of it so you couldn't have a clear message to the sitting president in the white house
00:53:28
which is this is not what Americans want and so to basically ignore the will of the voters and to essentially go and
00:53:36
push another country into the brink I think is so incredibly responsible and you know other times we've said in the
00:53:43
past take Donald Trump seriously but not literally Russia you should take seriously and
00:53:51
literally because they actually write it down for you and tell you and so when they said Every Act of aggression from
00:53:59
now on is going to be viewed by us on a lookth through basis to the actual country that is enabling this to happen
00:54:06
you couldn't be more clear but Americans couldn't have been more clear which is we don't want this war
00:54:11
anymore and I just think it's really deranged what the Biden White House is doing it's incredibly Dangerous by the
00:54:17
way not to mention it's incredibly costly as well I mean we've had like some last minute efforts to sort of Tamp
00:54:23
down on these last minute budget approvals and whatnot but we're talking about tens and hundreds of billions of
00:54:27
dollars that we're giving on top of the risk of of nuclear escalation I just think it's absolutely crazy it's
00:54:34
absolutely crazy Putin is not a dummy he has heard and seen Trump's campaign rhetoric and sax I don't know if this is
00:54:47
this has been publicly reported that he had a call with with Trump after the uh the election Victory does Putin not see
00:54:54
that in a couple of weeks a couple months there will be new leadership in the white house and there's going to be
00:55:00
a path to a resolution here like does that not give us all a little bit of reprieve that this is not
00:55:06
going to escalate because everyone's waiting for January 20th oh I mean for sure I mean thank goodness I would say
00:55:13
that we have a new president coming in who does not own this War I mean the problem with Biden is that he completely
00:55:19
owns this war and he does not want to admit defeat and so what you've seen is that over the last couple of years every
00:55:25
weapon system that Biden said he wouldn't give to Ukraine because it could literally cause World War III
00:55:30
these are Biden's words he said it could be Armageddon if we gave Ukraine f-16s it could be Armageddon if we gave them
00:55:36
Abrams Tanks it would be Armageddon if we gave them himars and attacks and could lead to World War III if we let
00:55:43
them hit targets inside of Russia these are Biden's words and he has basically given in on every single one of those
00:55:49
points because he's so committed to this policy right he's he's in the Quagmire he can only double down he doesn't to
00:55:56
extricate himself and now we don't know exactly what KLA Harris would have done but I think probably she would have
00:56:02
inherited Joe bid's policy and likely continued it and I think we have a wonderful opportunity here with Trump
00:56:07
taking office he doesn't own this policy he can look at it with fresh eyes and most importantly he campaigned on ending
00:56:14
the war so he has the Mandate of the American people to stop it all I can say is thank goodness and we just need to
00:56:21
get through the next two months we just need to get to January 20th without there being some new horrible escalation
00:56:27
in this war he's B Joe Biden is marting galing that's his strategy for the Ukraine
00:56:36
Russia War just keep doubling down and doubling down down oh yeah do you want to explain what that is oh yeah sorry
00:56:41
Martin giling is a strategy in gambling where let's just say you know you start betting a dollar and you lose your next
00:56:48
bet is $2 doll if you lose your next bet is $4 if you lose your next bet is $8 and eventually you'll win once is the
00:56:55
theory but there's many times where Mortin but you only WI a dollar so you could be betting you know
00:57:04
80 you know 40 bucks 80 bucks $160 $320 and then you finally win and you win a dollar right or or you go broke that's a
00:57:12
great analogy because you can also go broke right this is why they have caps at the roulette table one time I would
00:57:19
do this that's why all casinos have a Max yeah exactly so I would do this as a joke with my wife or when I was at the
00:57:24
world serice a poker i' be like I'll go pay for dinner or lunch or whatever and I put $100 on black lose put 200 on
00:57:31
black win go pay for lunch and I did it one time with the WSOP and I went 100 200 400
00:57:39
800600 I ran out of cash I got 3,200 from my friend I put it down the floor man came over and said that's your last
00:57:45
bet oh no my buddy and I my budy and I would if you do this yeah in our college Years early 20s we would go to drink for
00:57:54
free at the casino you just sit at the blackj table just table and watch your drink this was
00:58:00
this was a long time ago happened last year I would well I mean if you bet a dollar then you bet two bucks you can
00:58:05
just keep drinking for free for like two or three hours then go out and enjoy your night you've made 15 bucks and call
00:58:10
it did I tell you about the losing a million dollars playing roulette no me Nick you got to beep up the names
00:58:19
me it was me and and oh you did tell me this you did tell me this yeah this is so good says guys I've developed a
00:58:27
system it's full oh no that's always what happens before you lose a million somebody says that it's
00:58:34
like we need to risk a million we can win like two or three and it's like 99.996%
00:58:42
so so I say to them so are you really telling me that we just have to fade 0.004% chance of like total loss and he
00:58:51
says yep well guess what hit the 4% shot me totally and and it was devastating I
00:59:01
just kept looking at this thing like what just happened he's like oh we lost yeah and I was like there it is folks
00:59:07
never again I've never gonna play roulette again I think the gambling analogies are the right analogies
00:59:12
because I look I'm not saying World War II is going to happen I've never said World War II is going to happen I'm
00:59:16
saying that there's a risk of World War II and I don't need the risk to be very high to be very worried about it because
00:59:21
it would be such a disaster outome right totally exactly so I want to minimize risk of Ruin I want to exactly I want
00:59:28
there to be hopefully a zero risk of that but you know what's interesting is remember just like a week or two ago
00:59:35
president Trump made that trip to DC and he met with Biden in the Oval Office and
00:59:38
Biden had this he was like all smiles and I'm everyone's like wondering why is he so happy and the speculation was that
00:59:48
he somehow wanted to Common a lose or something but now you think back on this he must have known he was about to
00:59:54
authorize this decision so what he's doing here he's grin he's grin Trump he knows he's about to give
01:00:02
Trump this horrible hand right he's about to make this situation in Ukraine so much worse so that Trump will have to
01:00:09
inherit this mess that is like the definition of grin yeah he definitely knew more than
01:00:16
that picture L on because a the interpretation of that picture was they are getting along he's being super
01:00:22
gracious what an incredible gesture it just looked like yeah he promised a smooth transition of
01:00:28
power and then we find out that he didn't confer with his successor about this extraordinarily meaningful decision to
01:00:37
escalate the war escalation yeah it's like that's just crazy it's crazy you guys want to do science corner I got one
01:00:46
for you yeah yeah it all right your super fans are desperate for a science Corner give him one freeor give him
01:00:52
something all right I will give you guys something here here's a depressing paper
01:00:58
that was published in the journal Nature just this week research team out of Switzerland going over to the Swiss
01:01:06
where they are conducting extraordinary research in the epigenetics of fat cells
01:01:13
in oh so we're going to Fat shame me on the uh science Corner go ahead great no we're actually going to understand
01:01:19
perhaps why it is difficult for people that have been overweight yes to keep the weight off I did read this and I I
01:01:27
think it's fascinating yeah explain it it is it is really incredible so remember we've talked about this many
01:01:31
times in the past but every cell has your whole all your DNA all your genes and certain genes are turned on or off
01:01:39
in different cells and those genes being on or off differentiates those cells and
01:01:44
causes them to act differently that's the difference between an eye cell and a skin cell and a heart cell is they have
01:01:50
different genes that are up regulated down regulated turned on and turned off and even when you have different kinds
01:01:55
of cells you have certain genes that are overexpressed or underexpressed or over
01:01:58
regulated up regulated or down regulated so that means that those genes are turning pumping out certain proteins
01:02:04
that do certain things in that particular cell so what these folks did is they wanted to understand what is the
01:02:12
EPO meaning what are the genes that are turned on or off or up regulated or down
01:02:17
regulated in fat tissue in fat cells and does the epigenome change when an individual loses weight so once
01:02:29
they're obese and they lose weight do the fat cells actually change their epigenome or do they have an epigenetic
01:02:37
memory meaning that those cells even though the person has lost weight those cells still continue to act as if that
01:02:43
person were obese so I'll tell you in humans they basically took five individuals that were obese and lost
01:02:50
more than 25% BMI and they looked at the epome they looked at the markers of what
01:02:55
genes are UL and down regulated before and after they lost the weight after they lost the weight there were a set of
01:03:01
markers that were still upregulated that are associated with poor metabolism an increased fibrosis and increased
01:03:09
cellular death so these are inflammatory genes these are genes that are associated with the cells being
01:03:14
inefficient at utilizing glucose to create energy and so these cells contined to act like slow dying cells
01:03:22
even after the person lost weight and they did the same thing in and they found similar results that they caused
01:03:29
these mice to gain weight looked at the epome of the fat cells and then looked at the epigenome after they lost the
01:03:34
weight and again the mouse epigenome continued to act as if the mouse was obese and what this means is that the
01:03:42
metabolism remained reduced fibrosis remained elevated and likelihood of cell death remained elevated so now they
01:03:49
applied glucose in a Petri dish to those cells and they saw that the glucose had
01:03:53
a harder time being fully being appropriately utilized from a healthy fat cell that hadn't been obese so it
01:04:01
actually permanently alters and creates an epigenetic memory in the fat cells after obesity and this could explain
01:04:09
pretty significantly why when people that have been obese lose the weight they are more likely to gain the weight
01:04:15
back and have a hard keeping the weight off you're referring to yes and that makes total sense because anybody who's
01:04:22
added weight chth if that you add but you know you eat one extra Oreo a week that's 3,500 calories you do that over
01:04:31
20 years all of a sudden you wake up one day you're 20 30 pounds overweight like
01:04:34
I was three or four years ago and this is why I think OIC and wovi and mouro and all these things are so great
01:04:39
because it does seem like it breaks you through that no the problem but we we do see in all
01:04:45
those results that when you go off of The glp1 Agonist drugs you gain the weight back very quickly this is some
01:04:51
amount of yeah not the total amount it's a pretty significant bounce back effect
01:04:56
so and this is pretty well documented and so I think that it speaks to the why now it also introduces an
01:05:04
opportunity there are molecules that can turn certain genes on or off can now be
01:05:08
identified and utilized to change that epigenetic memory so now flip that switch in
01:05:15
addition exactly this could arise from things like increased exercise it turns out that when you do significant amounts
01:05:21
of cardiovascular exercise there are certain genes that are expressed that trigger gen to switch on or off and so
01:05:28
we can start to identify those particular molecules and produce either supplements
01:05:34
or additional drugs or combo therapies that can both knock the weight off and keep it off by changing we tic memory in
01:05:42
those cells wow and so it introduces a whole new class of opportunity for folks to explore how do we help folks that are
01:05:49
obese lose the weight and then flip the switch that they can keep the weight off
01:05:52
I've been doing rocking this is like the old man activity that Peter AA and these
01:05:57
guys are all put weights on and you like go walk I wear a I I started with a 10 pound weight vest now I'm at 35 pounds I
01:06:04
I do a mile and a half hike every day with 35 pounds on man I fall asleep immediately and the the amount of
01:06:11
intensity that puts on your body you do it right before you go to bed no no I do
01:06:16
it anytime during the day but I'm just saying it's it's I'm I'm focused on four things right now with my health diet
01:06:22
sleep exercise meditation and I I try to do four each day but the rucking specifically in this Zone 2 stuff is
01:06:29
what they say 40 50y olds should focus on so that's what I'm focused on but that rucking man does it make your whole
01:06:36
body strong I highly recommend it it's really transformative my meditation is reading Doge ESS for chamath popatia
01:06:44
German dictator 8090 he's running a software company services company great look at you in the driver's seat David
01:06:51
fredberg your suant of science working on ohal and the architect the Rainman yeah definitely David sax from Craft
01:07:01
Ventures and maybe it's going to be involved in Doge I I wouldn't be surprised if we see a sax Doge uh hook
01:07:08
up in the future I don't know I'm taking a guess here I am your host here Jason calanis we'll see you all on December
01:07:16
7th live or in person by the way did you guys Holiday Spectacular did you see this tweet from Brian Johnson he tweeted
01:07:24
out all of his blood levels this is incredible I love this guy look at these results they're incredible if he can
01:07:31
break this down into like a turnkey thing that normal folks like us can follow for people who don't know what
01:07:40
this kid's doing is he is spending like $3 million a year or something to that effect on his own personal health
01:07:47
documenting it sharing it everything from sleep to his bone density everything is an open book and uh he's
01:07:55
made some products out of it as well so you you can you can eat his pudding too if if you're interested in it but I
01:08:00
don't think it's as good as how do you follow his regimen you know what I mean like it just seems too hard you can't
01:08:05
have a job I mean he's doing it's like he's got two jobs right now doing all this stuff his biomarkers are showing
01:08:09
he's 10 years younger than his actual biological age dude look at some of these results
01:08:15
his his speed of Aging he says his birthday now happens every 19 months what the freeberg
01:08:26
I mean freeberg do you you look at what do you think here science uh from a science perspective any thoughts on all
01:08:31
this well I think his nighttime erection rate is pretty impressive not three hours and8 minutes for a nighttime
01:08:37
erection that is he reading is he reading uh Elon and V's opad colum what slowly he's reading it very
01:08:47
slowly wow he's got a 240 lb bench press and an 800 lb leg press Jesus he looks like he's dead though though that's the
01:08:55
only problem with he's so pale sax has got to go djt online too we'll see you all next time on the love byee love
01:09:07
you let your winners ride Rainman David and instead we open source it to the fans and they've just gone crazy
01:09:18
with it love you queen of [Music] besties are that's my dog taking your driveway oh man myit meet we should all
01:09:39
just get a room and just have one big huge orgy cuz they're all useless it's like this like sexual tension that they
01:09:44
just need to release [Music] somehow we need to get merch our [Music] I'm going all in