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All right, everybody. Welcome back to the number one podcast in the world. Your favorite podcast, the all-in
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podcast with me again, the core four, the original four, David Freeberg, Jamal, Pololly, Hapatia, David Saxs are
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here. And there is a lot going on in the world. Gentlemen, how's everybody's week
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going? Anybody got big plans for next week? >> Jal, your ship has finally come in. Your
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invitation was not lost in the mail. >> What? Really? I bet >> you have been invited to Davos.
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>> What? I got to get my guitar. >> Oh, Davos. I'm going to bring my guitar. Don't blow
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it. And explain to the audience what's happening here, Saxs. >> What's happening?
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>> Well, as it turns out, one of the houses there is in need of content. So, they've
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offered all in a stage to interview people. >> All right. So, we got stage microphone.
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You're going >> I'm going. Yeah, >> President Trump is giving a major talk
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there on Wednesday, I understand. Uh, and so there is a stage and microphones. So, I'm I canceled my ski trip in Japan
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to go to Davos. >> Even Jason is going >> Even J. >> Even JC is at Davos.
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>> Even JC. >> I mean, it's pretty funny. I was invited to be part of that like um you probably
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got this tuchimoth back in the day like they're young leaders for $50,000 a year. So we're going to be doing some
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interviews and uh if you want to be interviewed by me andor saxs at the USA house, email jasonallin.com if you're
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there, if you have ideas for speakers and we're going to be booking in real time.
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>> I haven't been to Davos. I guess the way it works is there's a bunch of houses.
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So, countries have houses and then companies sponsor houses >> and there's stuff happening there.
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There's like stages set up and there's constant interview. So, you know, I've gotten a
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bunch of requests. Basically, everyone's interviewing everyone else at Davos.
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Does that make sense? I mean, it's like all the attendees are just constantly
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interviewing each other. >> It's like the podcast circuit. >> All these podcasters now have run out of
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guests, so they just interview each other in a giant circle. That's what it is. This is literally going to be Yeah.
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heads of state interviewing heads of state. >> Yes. Everyone's just interviewing
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everybody. >> Hey, welcome to the JD Vance show. I'm JD Vance. With me on the show today is
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Mandami. Welcome to the show. Everybody's doing collabs there. The snake has eaten its tail, but I think
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we'll have a fun time. Me and Sachs are going and we're going to we're going to
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tear it up and have a good time. The USA House, I understand, is like on a main street there. And uh my understanding is
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I was talking to the CEO of McKenzie who's one of the partners I guess who who sponsors a lot of the stuff at
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Davos. >> Look at you rubbing elbows with the global elite talking texting with the
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deep state. This is fantastic. >> Yeah. No, I'm going it's a deep state.
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It's my deep state era going into 2026. And um there's supposedly what the vibe
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is Saxs is people just kind of walk around the main town and they'll just pop into USA House and they network have
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a have a coffee. They take a coffee and then what we've got to do is have producer Lisa say, "Hey, do you listen
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to Allin? Hey, it's great to see you. Would you like to talk to David and Jason?" They're going to be sitting over
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here and just me and David are going to uh hold court. It's going to be fun. I'm
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looking forward to it. We have kind of like a little little man on the street. >> We might, you know, I've done a little
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uh vox pop in my deck and uh we might we might get a wireless microphone and go on the street and see what happens.
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>> This is going to last 5 minutes until people hear that Jake is is being
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obnoxious and asking >> question. You know, Jake, people don't know this, but Jal does an incredible
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Triumph the Insult comic dog impression. >> Oh yeah, I do. I do. >> Oh my god. If you went around.
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>> Oh, dude. >> Oh, yes. It looks like it's the prime minister of Germany. I understand. You
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turned off your nuclear at the right time. How's the data center project going? I heard the 15year-old Greta is
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uh doing your energy conservation and your strategy. How's that going for you?
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>> It's not gonna last up again. >> Yeah, we're gonna be detained at Davos.
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All right. All right, I guess we got to talk about what's going on in Iran. Regime change could be happening. There
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have been massive anti-regime protests over the last month. As everybody listening probably knows,
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Iran has been ruled by an Islamic dictator since the 1979 revolution. Ali Kumeni is uh in power
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since 1989. And if you want to understand why this is happening, there's probably two data
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points that you should know in the short term uh last you know six seven years inflation has been bonkers. If you think
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you know 7 8 9% inflation during co was acute and and you know 2.6 now people complaining about uh take a look at this
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chart boys. Uh it's it's been 30% on average since 2019 due to sanctions.
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Obviously, those things uh can work. There's been food shortages, people in the streets long-term. Here's a chart,
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and this is from 2020. So, you can add six years to the chart you're seeing here. But, uh there's a
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lot of young people in Iran, and the populace is made up of a lot of 20somes and 30somes. And they have Starlink and
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they have access and VPNs. And so, they want to be part of the future. They want
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to modernize sachs. This was a point of contention last year. We were talking about
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interventions going on, you know, foreign wars and your concerns about that. This one is from the bottom
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up. So I think that makes it quite different. Yeah. >> Well, look, this is a highly dynamic
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situation. And I don't really want to comment on something except to say that
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I trust President Trump to make the right decision and handle it. As I understand it, the protests are either
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fizzling out or being cracked down on at this point. And I tend to think it's
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dying down, but I'm not sure. And it's it's a dynamic situation. I really Look,
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the problem is whenever I comment on something like this, it ends up being Trump adviser David Sax says whatever.
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>> Yeah. get clipped and >> and the reality is I'm only involved on
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two issues and this isn't one of them. So I don't really think I should be
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commenting. >> Yeah, Freeberg, you've been talking about this and uh I think it was part of
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your predictions from the show last week, the prediction show. Here's your poly markets and then I'll let you give
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your thoughts on it. Kani out as supreme leader of Iran by January 31st. that was up uh around 27% and now has
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dropped to a 10% chance. And will the regime fall before 2027? $2.6 million in volume. 37% chance. It's been up there
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as high as I think 50 some odd percent. And this is before the end of the year. So h obviously a breaking news type
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situation by the time we tape on Thursdays as everybody knows I'm out on Fridays.
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So this could be radically changing. Just broad strokes. What are your thoughts here, Freeberg?
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>> I mean, I think it's inevitable that there's a break in the country because
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of the effect of sanctions. The average income is about 200 bucks a month in Iran. And the price of food is roughly
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the same as the US, maybe a little bit less than the US. I mean, there a combo meal at McDonald's, I just pulled this
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up in Tan is four bucks equivalent. So again, if you're making $200 a month and it's four bucks to go to McDonald's,
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costs catch up pretty quickly. I think that ultimately is what breaks civil society is when people can't afford the
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things that they need and people have no choice but to stand up. and an oppressive system, an oppressive regime
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can keep people down for so long until they're starving or they can't get
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access to things like medical care. And these are the sorts of things that ultimately lead to these moments. So, it
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seems like it's an inevitability. The United States put a lot of pressure on
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the regime in Iran and it seems to be starting to break. The key question that everyone's asking is Trump going to act
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in supporting the revolution which theoretically I would imagine would involve attacking IRGC sites which are
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the revolutionary guard that are sort of the internal security force that maintains the regime's control over the
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people and if they take out IRGC sites will that actually result in the people being free and what's the transition
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plan? This is obviously a very messy situation. Reza Palavi is in Europe and he said he's ready to come back and he
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is the Sha's son and if he comes back how are you going to give him influence
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and control? This is the same question that recently came up in Venezuela. There is a very large infrastructure
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that needs to be overseen of government agencies and you know you can't bring an
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outsider in and just plug them right in to take over everything. It's a very
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difficult transition and that's when things fall apart when people steal stuff when uh things get turned off. So
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how do you maintain kind of the core functioning of society without breaking it by bringing someone new from the
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outside? That's where this gets very messy. So I I don't know what's ahead.
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>> Yeah. And the strikes didn't happen last night. Bessant announced some increased
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sanctions. That always seems to be one of the best ways to handle this is to increase the economic pressure as you
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pointed out Freeberg and for people who don't who are not familiar Iran is a
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large country. It's the second largest in the Middle East behind Egypt I believe and close to 100 million people
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95 million people I think live in Iran. Uh this would have a dramatic impact on the region if there was a transition
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here. Obviously, you've heard about uh different Houthis and Hezbollah being
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supported, funded, housed in Iran. So, this would be quite dramatic, huh? If this turned over, uh even if it's a 10
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to 30% chance this were to happen, any thoughts on what that would mean? You know, we've been watching this
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modernization of the Middle East and just Saudi, UAE, Qatar, everybody having a seat at the table, increasing
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influence, increasing modernization in those countries. What would this do in the region?
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It's really hard to tell. It's an incredibly vibrant people. If you look at the Iranian
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diaspora, they're really a dynamic part of every culture they join. If you know
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Persians in LA or Persians, I mean, they're >> I mean, you and I played poker with the
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diaspora in LA. These are the most people in Westwood. They're they're the
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greatest. >> They're the greatest people. >> They're shutting the club down. The last
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people out at the game. >> Yeah, >> they're really great. The thing that I
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would say is that I don't think that you can paint the Middle East with the broad
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brush here. It's a very different culture than the other Middle East countries. It's a fundamentally
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different religion. It's a fundamentally different language. So, I would just say
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that I don't know what's actually going on in Iran. There's been so much
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information containment that I take Sax's point of view which is I think the
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only people in the United States right now that have an accurate sense are probably the military and intelligence
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apparatus of the United States and the rest of us are underreacting or overreacting to small
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pieces of information without really knowing the context and the mosaic of the whole. In a breaking news
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environment, it's uh best to do some research and uh yeah, be humble and thoughtful by the way about your
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positions. Yeah. >> The crazy thing about this if you shift away from Iran was specifically the
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information warfare game is totally different. So what did you have? You had SpaceX enable Starlink over Iran
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and then there was the attempt to use that mechanism to get information out to fill in the mosaic. Right. So
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>> was what was happening 90%, was what was happening 10%. Was there counterrevolutions that were supportive
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of Kmeni? None of us knew anything cuz you would see these snippets and it was very hard to actually triangulate. Then
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you had this entire information channel get shut down and you had all kinds of blocking mechanisms that essentially
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drove the packet loss down to like 80 90%. And it's just important to understand that is the generation of
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warfare and information that we are going to see in every conflict going forward. Especially when you have
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something as ubiquitous as Starlink and other things in the sky to help you get the information out, you're just going
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to see these tactics increase. >> And I don't know if you guys ever saw
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it. Anthony Bourdain, rest in peace, did a really great parts unknown in 2013 or
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>> Anthony Bourdain I've ever watched. >> Yeah. If you want to see Iran, it looks
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so amazing. Look at the Anthony Bourdain parts unknown in Tyrron. It looks like a
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party. >> Well, yeah. And young people there. >> Total vibe there. >> Yeah. The young people are like really
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living their life under this oppression and you you really get the sense that they're not much different than us or or
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any other folks in the world. And the the journalists who took him around were later detained.
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And I really respect Andy Berdane for even doing that episode, man. They took a lot of risk doing that.
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>> Remember there was a period where one of the most popular accounts on Instagram
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was the rich kids of Tyrron, >> right? If you follow them, you'd be like, man, this looks like
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>> LA or New York. >> Yeah. Hong Kong. Yeah. London. Yeah. Dubai. >> Great potential there. We're rooting for
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the people of Iran to have their freedom. And uh yeah, I actually and I'll say Saxs, I trust Trump
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in his targeted neocon era. I'm trying to phrase it properly here to not offend
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anybody, but I think he's >> doctrine. >> Well, I mean, he he I think doesn't have
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a problem using our military and the force we have to take a dictator out if it doesn't cause
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World War II. And if two dictators and two societies are freed in first quarter of 2026, I mean, what does that
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even mean for his legacy? This could be the defining moment of his legacy. Yeah.
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>> Means there's only a few of us left. Jason >> dictators. Yes. He'll be coming for you.
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All right. Microsoft is going to pay its own way on data centers. We've been
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talking about this um you know energy needs for AI data centers for a long time now and uh there's been this theme
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hey if the data centers are going to take all this energy it's going to spike
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local power consumption we saw a number of data centers gentlemen maybe pull out
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of projects where there was local push back on them on Monday President Trump our President Trump addressed this PR
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crisis on truth social calling out Microsoft and never want Americans to pay higher electricity bills because of
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data centers. Two words, data centers. I added the last part. Microsoft will make
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major changes beginning this week to ensure that Americans don't pick up the
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tab for their power consumption. Microsoft President Brad Smith announced they will pay higher electricity rates
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where they are building data centers to cover the cost of the new power generation and grid upgrades. Seems like
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a pretty simple idea. And they're also going to pay to replenish water that it
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draws from the reservoirs. That issue has also been a little bit overblown. Freeberg, you probably or actually
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tomorrow, you probably know a lot about that and you can explain the data center
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recycling water issues and the misperceptions. And they're not Microsoft has announced
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they're not going to accept any tax breaks or electricity rate discounts. So
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that era seems to have ended. Chop, you're involved in a number of data centers and obviously David Sachs,
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you're involved in this as are AIS are. and civil servants. So, Shabbath, why
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don't you start us off here? >> You guys can find the clip, but we talked about this a few weeks ago that
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these kinds of things were in the offing. I really like it. It's a very good first order set of things to do,
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which is to step into a local area and take all of these energy issues off the table,
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>> at least to the extent that you're contributing to it. >> The problem is that the data centers are
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only part of the problem. The reality is that we have a whole new way of living that is drawing more and
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more electrons. We are at a shortage for what we need. The reaction of the utilities is to now build which is the
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right reaction. The problem is that for the last 20 years they've been underbuilding.
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So as they catch up, even if you have the data centers that are willing to pay their fair share, rates will still go
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up. So what do we need to do that is beyond what Microsoft just announced? I think all the hyperscalers should copy
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what Microsoft did. I think it's great that the president was able to get these
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guys to the table to agree to it. What is the next major thing? The next major thing is when you actually create a
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hundred or $200 billion tax equity vehicle and you have them completely subsidize and pay for
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the electricity costs of homeowners. How do you do that? You do that by paying for them to get solar and storage. Why
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would they do that? They would do that for two reasons. Number one, and the most important is that it will give them
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a social license to operate throughout the country. The second reason is that the president preserved the ability to
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make those kinds of investments and be tax advantaged for doing it in the one big beautiful bill. So if you put these
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two things together, I think step one is you go into a local area, you tell the local residents, we'll pay for the
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water, we'll make sure there's minimal noise, and we'll make sure that we take
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absolutely no discount. we pay our fair share even if it means paying more than you do for electricity. That's step one.
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But now I think we need to go in with step two. Here is a bunch of money that we have allocated to go and fit your
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house out with solar, with storage, with next generation heat pumps, with a modern set of infrastructure so that you
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are totally resilient and now you are completely ambivalent to what the grid has to do in reaction
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to all the demand that's coming. >> Yeah. I had um Zack Dell from uh base
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power on this week in startups I don't know a year ago now and we were talking
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about this and I said hey why wh why why wouldn't you just and and what they do
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is not solar because solar takes time you got to rip up your roof there there's some complications with solar
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you need to have the space for it it's expensive to install they just put a battery like a little R2-D2 tube outside
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your house they fill up that battery when energy is cheap and plentiful and they deploy it when it's expensive and
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the grid has challenges and he said those kind of deals are in the works or the discussions were happening and that
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was back then. So this is a really easy win-win type situation. Shimath you're
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describing Sachs this feels like proactive now thoughtful ways to communicate to the populace of hey the
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AI boom is here and you have concerns we're going to get ahead of them. So have you been involved in any of these
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discussions? Is are you talking with Chris Wright and like overlapping in terms of the um communication here or is
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it just a free market solution? >> Well, Jason, the the president's been
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ahead of the curve on this issue really since the beginning of the administration. I don't know if you
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recall, but he said that he was going to make AI companies into the biggest power
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companies because he understood that the data centers that they needed required a
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lot of power, but they were going to stand up their own power generation and they wouldn't just draw off the grid.
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And so, I think this understanding has always been there. When I've talked to
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the hyperscalers, they also tell me that their plan is not to draw from the grid.
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It's to basically set up their own power generation behind the meter. It's called
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collocation. And in fact, I think ultimately this will bring down rates for residential consumers for two
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reasons. One is that when the data centers create their own power, they can sell back or donate back to the grid
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when they connect. They don't have to connect to the grid, but once they do,
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they can donate back. And then second, there's a number of fixed costs in power
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generation. It's not just variable, right? There's these large fixed costs.
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And so as you increase scale, those fixed costs get amvertised over a greater amount of supply. And that
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brings down the variable rate, basically the the metered rate for everybody. So scale is good. And I think the deceptive
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nature of the criticism here by like Bernie Sanders and people like that is what they say is well we just have to
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shut down all the data centers period when the real problem here is that he and others like him have overregulated
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power generation to death so that it's too hard to set up net new power. Right?
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I mean if power generation were easier there wouldn't need to be a limit on what the data centers could use. They
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could just bring their own power. So that is the obvious solution here and it's good to see Microsoft make this
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pledge and sort of formalize that. I think all the other hyperscalers will do that. Again, it was never part of their
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plan, I think, to draw on the grid for their power needs. They always, I think, understood that they'd have to stand up
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their own power. And the issue is just regulations getting in the way of that. And just one final point on this is that
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there are a bunch of regulations by FK for example that interfere with the ability to do collocation. Collocation
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is when you put a data center and the power generation next to each other or you do them together. And Chris Wright,
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the secretary of energy has directed FK to make a bunch of changes to make behind the meter and collocation easier
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so that these data centers can stand up their own power. And the only reason that hasn't happened is just because of
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the usual bureaucratic delays. But that is well on its way to happening. >> All right.
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>> Does that make sense? >> Yeah, it makes total sense. And you know, if we start thinking about
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incentives, incentives obviously matter. And I don't think a lot of people know
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this, but and I think I talked about it when we were talking about nuclear freeird in France. the people who live
00:22:29
near the Avine uh I think is how it's pronounced uh reactor they pay 0.1% tax versus the 12% regional average and
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so they and then I think the UK has also talked about the sort of danger zone or
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uh proposals and payments you can give people a discount to incentivize them and reward them giving them free local
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electricity etc for living near a nuclear power plant that hasn't come up here in the United States and there's
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been a lot of of FUD, fear, uncertainty, and doubt Freeberg around these data centers. People throwing around a lot of
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talking points. I think you and I discussed offline the the misperceptions about water usage and that the water
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usage is largely recycled in these data centers. Um, if you know about that, would you would you inform the audience
00:23:16
about that piece of data? >> Well, we got a lot of water. It just goes around in a circle, so I don't
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think that's an issue. uh but clean water and the cost of clean water increasing for a local population is the
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misperception there. >> The modern cooling systems these data centers the water recirculates and
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transports the heat out of the data center. So it's not like the water is used up. I guess there's a separate type
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of evaporative cooling that does use up some water, but modern data centers don't use that. So, the water issue is
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really a a total hoax, and it's really kind of a subhoax of this larger affordability issue. I'm not saying that
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affordability isn't an issue, but it was caused by Biden's 9% inflation, and now
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Democrats are trying to make it an issue. When it comes to the power for data centers, again, this all comes back
00:24:08
to the fact that the regulations make it too hard to generate net new power. So again, scaling demand on its own not a
00:24:16
problem if you also scale supply of electricity. In fact, it brings down prices for everyone because scale
00:24:23
creates economies of scale. >> Yeah. And 90% of that water is reused and there's closed water loop systems.
00:24:30
And >> here's my pitch. I think the president should try to create a >> three, four, 500 billion dollar tax
00:24:37
equity fund and help eliminate the electricity costs of 50 to 100 million American households.
00:24:44
>> Amazing. >> Well, here's the let me let me give you the math. So, we consume in this country
00:24:49
about 4 trillion kilowatt hours of electricity. Average price is 18 cents a kilowatt hour. So it's about call it
00:25:00
$750 billion of spend on electricity every year. Onethird of that 250 billion is residential consumption. 2/3 of that
00:25:10
500 billion is industrial and commercial consumption. Theoretically you could increase the
00:25:16
price on industrial and commercial consumption by call it 50%. And make all residential electricity in the United
00:25:22
States free. If you're a residential user, you get a cap of free electricity
00:25:27
every month. And if you use more than that cap, you get charged. But below that cap, you're free based on whatever
00:25:33
square footage of your house, I don't know, whatever. And then on the commercial and industrial side, the
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reason you would then have an incentive to build private power systems would be that you can bring your cost down. And
00:25:47
instead of centralizing all of this with the utilities, what it can do is it can
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force a market demand for industrial and commercial users to build their own power systems, which would increase
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overall electricity supply in the United States. The data centers are the tip of
00:26:01
the iceberg. But if you make this a panindustrial problem, then all of the industrial companies would have to take
00:26:07
this path. The problem is it doesn't change the net consumption model. If you
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actually go to solar and storage for every 15 million homes, you take a terowatt hour of demand off the grid.
00:26:17
That's an extra terowatt hour that you don't need to build, but you can't build
00:26:20
that quickly. So, the reason why I like solar and storage is you make these folks so self-reliant. Now, all of a
00:26:27
sudden, we're actually catching up to China faster than we would have otherwise.
00:26:31
>> You're talking about residentials. >> Yeah. Your idea, which is a good one,
00:26:34
the problem is they're still using grid services, >> right? Or they don't have to. That's the
00:26:38
point. Like if they end up the industrial users. Well, the industrial users will then invest in solar systems.
00:26:45
>> My point is today the homeowners are using >> there is no solution to not using.
00:26:51
>> Yeah. If the if the industrial price goes up by 50% you've now created a
00:26:56
market force to drive them to make the investment particularly if you if you deregulated.
00:27:01
>> I understand the math but my point is >> and you get this and you get this first
00:27:04
year capex depreciation. So they actually get a benefit and instead of putting all of the
00:27:09
>> guys you're talking through each other. Chimat's point is that you're still
00:27:13
taxing the grid. His proposal adds another layer to what you're saying. So he's in agreement with you, Freeberg.
00:27:18
Hey, yeah, let's have the businesses pay a little extra and and not or and let's
00:27:23
have them take off the grid to reduce the grid. Well, there's 80 million freestanding homes in the United States
00:27:29
and it's about 15k to put these battery packs in like base power zooing. You can
00:27:33
probably get it down to 10. And if you just do back back of the envelope math, you're talking about a trillion dollars.
00:27:37
So basically for a hundred billion, you could do 10% of the country. If you were
00:27:40
to do that over some time period, we would have we would stop worrying about the grid, I think, is Chimoth's point.
00:27:47
And you could do it with battery. You could do solar. >> Well, you would not stop worrying about
00:27:50
the grid. But Jason, just to refine what you're saying because you're directionally very right. The consumers
00:27:55
would feel less of these issues. And instead of all of us worrying how to underwrite terowatt hours to catch up to
00:28:02
China, we actually get a two for one. The consumer homes don't have that anxiety anymore. They don't have the
00:28:10
bill. And because they're generating their own power, they're off the grid.
00:28:15
And now what that means is that extra terowatt hour can actually go to the commercial and industrial applications
00:28:21
including these data centers. And you're right, Freeberg, we should raise their
00:28:24
tariffs. I just think it's a lot it's a lot more complicated and a lot more
00:28:28
expensive to ask everyone more complicated. Okay, listen. None of this is free. None of it's free. However, we
00:28:34
have such an amazing opportunity with AI that it makes sense to do this. That I think is the big picture. AI is such a
00:28:41
huge opportunity. There's so much invested. Why wouldn't you do this is the question. And if we're want to live
00:28:45
in the age of abundance and we want to bring the bottom half of the country up and we want affordability, where do
00:28:50
people spend their money? food, groceries, their rent, and their electricity and the utilities. So, we if
00:28:56
we want to figure out a direct way to do this, and for all the hippie- dippies who care about the environment and clean
00:29:03
energy, this is a win there as well. And it doesn't come out of Americans pockets
00:29:08
and their taxes. It comes out of corporations which are printing money. If you want to talk about redistribution
00:29:13
of wealth, this is a way for the great American max corporations to give something back to Americans. And you
00:29:20
talked about this, right, off maybe three or four weeks ago that hey, maybe there would be some way for great
00:29:25
corporations to do great things for Americans. The fact that Americans don't
00:29:27
think about their water bill that much is a is a mitzvah. It's a great thing.
00:29:31
Now, if they didn't have to think about electricity, wow, amazing. >> We will look back and I think that we
00:29:35
will want to have seen these big companies who are unbelievably profitable step up on behalf of American
00:29:43
homeowners. >> Some might say obscenely profitable. I just think I just think it's a it's a
00:29:48
great >> mission to the moon style framing to say what if we could make all residential
00:29:53
electricity free in the United States >> and over the next decade if we can do
00:29:57
that not only do we help Americans with their wallet but we actually can enable a distributed investment scheme in
00:30:07
American energy production and we force the corporations to step up and do their
00:30:12
part rather than centralize it. So I I just like the framing of making this whole thing free, making residential
00:30:17
electricity free in the US as a core benefit. >> The other thing is we've talked about
00:30:20
this, I've mentioned this a couple times before. I think the single biggest dollar short, it's not clear when
00:30:31
that one will be able to make will be on these utilities. Because if any version
00:30:36
of what we just talked about happens and all of a sudden you have private homeowners that are their own utility
00:30:43
and then Freeberg CNI being their own power utility, what do the utilities do? What does all this capex go to? How do
00:30:51
they pay back their bonds? What happens to their rate base? This is a huge economic question that I think will come
00:30:57
up if even a small modeicum of what we just talked about materializes. >> Yeah. and uh you know people having
00:31:05
their first x number of kilowatt hours a year free. You know obviously you're not
00:31:09
going to have unlimited free. You know that that's going to be pretty transformative for America. It's
00:31:15
aspirational. We all like the idea. I like it. Okay. Open AAI has struck another compute deal. This one's worth
00:31:20
over 10 billion. OpenAI is buying compute capacity from Cerebras. That's C E R E B R A S. They committed to
00:31:28
purchase up to 750 megawatts over 3 years. Cerebrus like Rock makes specialized chips for AI inference.
00:31:36
Cerebras is in talks to raise 1 billion at a $22 billion valuation according to reports and they're expected to IPO this
00:31:43
year potentially in the next couple of months. Sam Waltman's an investor in the
00:31:46
company. So, uh he knows it well and >> is he really stop? >> I I mean it's in the notes. It's in the
00:31:52
notes. >> You can't say this though if you don't know if it's true.
00:31:55
>> It's in the notes. It's in the notes. Take it out and post if it's not. I
00:31:59
reported by the misinformation. I don't know. It could be information. Could be
00:32:03
misinformation. Shout out. >> Okay. >> To our friends that they information.
00:32:09
>> These were your competitors at Grock. Yeah. Uh Chima, >> they were contemporaries. Yeah.
00:32:13
>> They're fantastic. We both started at the same time, we took slightly
00:32:17
different technical approaches. The big difference that what Cerebra said initially from the start, and this is my
00:32:22
friend Andrew Feldman, so I'll give him a shout out. Very smart guy. If you see
00:32:25
a chip, what you actually see is a wafer. And a wafer is full of little chips, right? and you you literally tear
00:32:31
them off. That's why they're called chips. Andrew was like, "No, I'm just
00:32:34
going to make one ginormous chip the size of a wafer." And so if you look at
00:32:38
it, Nick, maybe you can find a picture of it. These things are huge. And at the time, people were like, I don't think
00:32:46
they really understood what the power of what Cerebras was building and what Andrew was building. And then the first
00:32:52
folks that really got on board were the Emirates, so MGX and G42. And you started to run these models. And
00:32:59
what you started to see was, man, their inference is blazing fast. Again, back to what we talked about last week
00:33:04
because when you have the compute and the memory in the same place, physical distances are now minimized and the
00:33:10
complexity is minimized. So, you just have incredible speed. What I can tell you is that OpenAI is aggressively
00:33:17
trying to diversify so that they have multiple paths of inference available. They have a huge deal with AMD. They
00:33:24
have a huge deal with Nvidia. They now have a huge deal with Cerebras. If you look at the trail of breadcrumbs, my
00:33:29
belief there's going to be a renaissance in silicon. Young small teams building
00:33:35
decode silicon can make a fortune over the next 10 to 20 years. It's a huge opportunity. It's going to be like the
00:33:42
PC wars, Dell versus Compact versus all of these companies. It's super exciting.
00:33:48
And congrats to Cerebras. They deserve it. >> Is there um any argument that compute
00:33:54
needs will level off in some way? will have built so much capacity and the software will get better. There's been
00:34:00
some talk about anthropic being resource constrained as the contemporary to open
00:34:05
AAI and I think there's pretty much uniformity amongst elite AI users that claude is a much better product now than
00:34:13
OpenAI and the models are better, the applications are better but they're doing it with less. So could the
00:34:20
buildout be could it slow down? Is that a scenario that's out there or is this
00:34:26
always going to be up and to the right for the next five ten years? What's your
00:34:28
crystal ball saying? Sax, are you still there? >> I'm here. >> Oh, okay.
00:34:33
>> Why is he on Why is this video off? Turn it on. >> I mean, you can turn it back on and then
00:34:37
when you talk, we'll just go back and forth. >> Sex still has a ways to go, I have to
00:34:41
say. >> All right, there you go. All right. So, anyway, uh Abbott, >> this is your best internet.
00:34:47
>> Texas structure is uh >> Oh my god. Sax is going to do the Abbott. Abbott will send someone over
00:34:53
immediately. They're they're pretty responsive in Texas. >> My prediction is there'll be a big meme
00:34:57
by the end of this year called the Texas Bounceback. And it's a bunch of billionaires. They do a little jiggy as
00:35:01
they dance back from Texas back to California. >> No. No. >> Ain't happening.
00:35:05
>> You're there for good, huh? >> Well, here's the thing. So,
00:35:09
>> okay. >> Well, maybe we should just talk about BTA cuz this where this is going.
00:35:14
>> Well, I mean, listen, you move houses. Move houses. You could have a little
00:35:17
internet issue. It's okay. Well, I mean, I'd rather have an internet issue and
00:35:22
keep 100% of my money than >> 5% >> lose 5% plus 13.3 per year. And it's not
00:35:30
going to be a onetime tax. That's the biggest lie. >> It's 5% now, 5% later, 10% after that.
00:35:37
>> Yeah. >> You know, it'll be an exit tax. >> Yeah. >> They're coming for all of it.
00:35:42
>> Yeah. >> So, the internet can get fixed. The internet, let's put this way. My
00:35:46
internet can get fixed a lot more easily than California can. >> What are the 10 states that
00:35:51
constitutionally ban asset taxes? >> Yeah. So, it's direct and implicit in
00:35:56
those states constitutions or they have an amendment to the constitution that makes it um direct or implicit that you
00:36:02
can't do a wealth tax or an asset section. >> Which are they? Alaska, Florida, Nevada,
00:36:07
New Hampshire, South Dakota, Tennessee, Texas. >> According to Grock, only Texas
00:36:11
explicitly bans wealth taxes. >> Yes, that is correct. But because of some of the other state constitutions,
00:36:19
it's implicit. So Texas has in their constitution an a prohibition on quote tax on wealth or net worth. Washington
00:36:27
has a uniformity clause which treats income as property which bans non-uniform rates. Florida's
00:36:32
constitution bans any sort of personal tax. Pennsylvania has a strict uniformity clause which would make it
00:36:39
impossible to have graduated tax rates or distinguished tax rates amongst populations. Illinois has a strict
00:36:45
constitutional mandate for a flat non-graduated tax rate. So you cannot do uh a separation. Um and then asset
00:36:54
seizure is referred to as a civil asset forfeite which is a separate legal issue but implies in
00:37:02
states like New Mexico, Nebraska, and North Carolina, you cannot actually have an asset taken
00:37:09
from you by the state. So there there's a bunch of states that this would be
00:37:14
constitutionally protected against. >> Freeberg, has your mind changed since
00:37:18
last week about whether this is going to make the ballot? >> I I don't think it's going to make the
00:37:22
ballot. I mean, look, I I think it's not I'm not saying 100%. I'm saying slight
00:37:26
overweight that it's not going to get there. >> So nothing has changed in your
00:37:29
perspective. >> I think we're going through the rolling wakeup process right now, which is
00:37:33
people are waking up to the fact that the asset seizure tax is an elimination of private property rights. that
00:37:39
fundamentally what you're saying and I wrote this in my tweet that private property now becomes public property
00:37:44
because as soon as you give the government the right to collect your post tax assets through a legislative
00:37:50
vote, you are basically saying that you no longer have private property because at any point in the future the
00:37:56
government can vote to say I'm going to take your private property which is different than an income tax which is
00:38:01
when you earn something that you didn't have before and they take a percentage
00:38:04
of your earnings of your income. The statement now is after you've made your
00:38:08
income, it's now your private property. They can come and take it. And so that
00:38:13
is a distinction that has never existed in the United States. And I will make the retort right now to property tax
00:38:19
because people always say to me, what about property tax? A property tax is a service fee on a particular specific
00:38:26
asset. The money that is collected provides services for that asset to make it more valuable. So you get roads,
00:38:31
infrastructure, policing, fire, schools, all the stuff that comes with property tax, make that asset more, and you have
00:38:38
the option at any point you want to sell that property and stop paying that property tax. You have the option at any
00:38:44
point to downgrade your property and get a cheaper property and pay it lower. But
00:38:48
and here's the other important point about property tax. It's uniform. Uniform means that everyone pays the
00:38:53
same percentage, the same property tax rate in a county. This asset seizure tax that's being proposed is a demographic
00:39:01
tax, meaning that the state or the legislature defines a specific group of individuals. In this case, they're
00:39:07
saying anyone with a net worth over a billion dollars and then they can go and take assets from only that group. That
00:39:14
is nonuniform taxation. It means that for the first time we're saying based on
00:39:18
the demographics of a person meaning whatever you want to use to define that person in this case their wealth you are
00:39:26
going to be treated differently and that is different than an income tax because
00:39:28
remember when you have graduated income tax rates and you say high earners t get
00:39:33
tax more what you're taxing is the earnings not the individual. You're not
00:39:38
looking through to the individual to determine whether or not they're wealthy. All you're doing is looking at
00:39:42
the independent earnings amount that's coming in. And so a uniformity clause is
00:39:46
supposed to protect people from being demographically discriminated against. And you may roll your hand and be like,
00:39:53
"Oh, who cares about the billionaires? Eat the rich." That's great. But
00:39:56
fundamentally, you're giving the government, the legislature, the ability to in the future take any demographic
00:40:02
definition they want and go in and take any percentage they want of after tax property from you. That is why this is
00:40:08
so troubling. And we can harp all day long about eat the rich and obviously this group is is biased, but the general
00:40:16
population should be very much aware of the fact that as soon as you give a legislature the ability to discriminate
00:40:22
a group and take whatever% they want. Yeah. >> You've se and and it's over. You've
00:40:26
you're now what you've done is you've made all private property public
00:40:30
property because the government is simply giving you permission every year to keep your stuff
00:40:33
>> and the government shouldn't even know. It's like they're they're coming onto
00:40:36
your ranch and calculating how many tractors you got. How you got an old Corvette? How much is that worth? What's
00:40:40
what's your old roadster worth? Jewelry worth. >> How much moose is worth?
00:40:44
>> Moose is Yeah, they're going to take 5% of moose. >> Very valuable thorough bread there.
00:40:49
>> Absolutely is. There'll be a new job category. Tax appraiser. >> Tax appraisers. And then you don't know
00:40:54
whether the >> knocking on your door. I'm here to walk around your ranch and calculate
00:40:58
everything. I mean, >> and it doesn't solve the geometric debt problem, right? We have a problem where
00:41:04
every year if we keep funding things with a deficit in California we're looking at a 30 billion a year deficit.
00:41:08
We've got 500 billion of debt and we have a nearly 1 trillion dollar pension
00:41:13
obligation that is not funded. >> Yes, >> that money is going to come from
00:41:17
somewhere or it is not going to get paid. It is more likely that they're going to do everything they possibly can
00:41:23
to get that money from somewhere rather than not pay it. And the same is and the
00:41:27
same is true for all pension obligations across the country. Illinois has a big problem like this as well.
00:41:33
>> Well, can I can I take the other side of that bet that bet you mentioned about it
00:41:37
not getting on the ballot, >> please? Yeah, go for it. >> Well, I I've never understood why this
00:41:42
wouldn't get on the ballot. And I've never understood why once it's on the
00:41:45
ballot, it wouldn't pass, which is why I left. So, let's take the first one of
00:41:50
these. In terms of it getting on the ballot, you only need about 8 million bucks to collect the signatures. 850,000
00:41:55
signatures. It's not that many in California. There's definitely millions
00:41:59
of people in California who would love to stick it to billionaires. So, they're
00:42:03
going to gather the signatures that SEIU has the money. The only way that it wouldn't therefore make the ballot is if
00:42:10
Gavin Newsome and the political machine bribe the SEIU with enough political benefits that they'll withdraw it. But
00:42:18
what the SEIU is asking for is whatever it is, the $30 billion. And I don't know
00:42:23
if Gavin Newsome has that much money laying around somewhere that he can just give them. Furthermore, if you're the
00:42:31
guy running the SEIU, I understand his name is Dave Rean. >> Rean. Dave Rean,
00:42:35
>> you got to be looking at what's happening on X right now and you got to
00:42:39
be gleeful. You got all these billionaires are panic tweeting all day long. >> It's not all day long. I tweet in the
00:42:46
morning from the bathroom. >> Well, we're all doing it. >> Morning constitutional. I went on a base
00:42:51
tweeting spree this morning. So if you're if you're this guy Rean, you're
00:42:57
like, "Oh my god, look how much leverage I've got." You know, twist a pig's ear,
00:43:01
watch him squeal. He's twisted these billionaires ears, and they're all squealing.
00:43:06
>> So why wouldn't you increase your leverage by spending the $8 million, put
00:43:09
it on the ballot, and then negotiate with >> Was that a Was that a deliverance
00:43:13
reference? I hope not. >> No, it's just an expression. Hey man, >> I don't know why your mind's going to
00:43:19
deliverance. >> Squeal louder. >> You need that deliverance on the brain.
00:43:23
>> I maybe I do. >> Sax, I'll tell you why. So, I've obviously been a believer I've been a
00:43:28
believer in the long cycle and I've said this for a long time. We are going to
00:43:31
end up in either a socialist or some sort of fascist. Either way, it's a tyrannical system to get us out of the
00:43:37
death spiral that we've been in for some time. So, that is true. But, I still
00:43:42
want to retain my sense of individual agency. And I do think that those of us who are in California who actually care
00:43:48
should retain some sense of agency rather than suspend our um our ability to have an influence in the outcome
00:43:56
here. I think we need to speak openly and honestly about where this leads to. Let people hear it. Let the people in
00:44:01
California decide. And frankly, if we've done our job, we've spoken loudly, we've
00:44:06
spoken clearly, we've re revealed to people where a private property seizure
00:44:11
tax leads to for everyone in this country and the deletion of private property rights in this country and they
00:44:16
still sign up to it, >> then I'm out. >> Yeah, I get it. And >> if it was a centillionaire tax, she
00:44:22
would have been out. >> I agree that we should fight it. I'm not being fatalistic. I don't think the
00:44:26
outcome is predetermined, but I don't understand why it wouldn't get on the
00:44:30
ballot because that that has nothing to do with how persuasive you and the opponents of BTA are. It's just about
00:44:37
whether SEIU, UHW will spend the requisite amount of money, 8 million, 10 million, 12 million, whatever, to gather
00:44:43
the signatures. And I mean, we've heard they have the money, right? So why wouldn't they? It only increases their
00:44:50
leverage to demand more concessions. They have $14 million to gather the signatures, which the estimate was
00:44:55
they'll need somewhere between five and 15. So, they have the cash they need to
00:44:58
gather the signatures. >> It's a good bet. >> And they have roughly $10 million to run
00:45:02
an ad campaign. And their estimate is they need between $50 and $100 million to run an ad campaign.
00:45:06
>> Sounds like a good the next step will be that they'll try and get this thing
00:45:11
signed up. Now, the polling data, it shows that there's room for influence sack. So, I do think that if people can
00:45:19
understand where this is headed and look, if America wants to sign up to this, Godspeed, man, like that's where
00:45:26
America's going to end up in the socialist death spiral loophole. Like, good luck. Have a good time. I'm going
00:45:33
to Terminus to start the foundation. I don't know where the hell that is, but
00:45:37
I'm out. >> You're out. >> I'm out. >> And in the meantime, all we can do is
00:45:40
speak truth to it and try and shine light on it and see where it goes. >> Hey, maybe 51st State Greenland. Maybe
00:45:45
we'll just do the first state. >> Look, I'm not saying it's going to pass,
00:45:48
although I do think it's probably slightly more likely than not to pass once it's on the ballot. I just don't
00:45:55
understand why it's not going to be on the ballot. And once it makes the ballot
00:45:58
in, let's say, April, >> I think there's going to be a big freak out and rush for the exits because
00:46:03
there's a lot of people >> who, you know, this is my theory is I'm
00:46:07
going to beat the end of the park. >> It's not people don't realize this. It's
00:46:10
not billionaires. I've received dozens of texts, emails, calls from people, founders, business leaders, CEOs that
00:46:16
are out >> if in April this thing ends up on the ballot because they're like writings on
00:46:21
the wall. If no politicians in California are willing to stand up and talk about private property rights and
00:46:26
no one's willing to say like this leads to a death spiral for the state and potentially for the country and no one's
00:46:31
going to say that, then it's only a matter of time before this happens and it's only a matter of time before it
00:46:35
hits me. >> And so everyone is looking for a place. >> Let me let me give you a data point on
00:46:39
that. Um there are other unions who weren't part of this ballot initiative who are preparing similar ones for 2028
00:46:47
and those ballot initiatives are going to be more bulletproof. They're going to
00:46:50
be better lawyered. All that kind of stuff. More likely to survive constitutional challenges. The only
00:46:56
reason why there is political opposition I believe to the BTA is because it was done by only one union. the SEIU uh this
00:47:05
guy did it on his own and the loot all the proceeds from this confiscation would go almost all of it would go just
00:47:14
to this one union or its causes. So they didn't cut in the other unions on the
00:47:19
loot. They didn't wet the other unions beaks. >> As a result of that, the other unions
00:47:26
are actually against it. And this is why Newsome and the other politicians feel relatively unconstrained in saying
00:47:32
they're opposed to it. And that's why I think that if we defeat this in 26, it
00:47:37
doesn't mean it's dead for good. It just means it's going to come back in a new
00:47:40
form in 28, but with much more broad-based union support, all the unions are going to do it together. So,
00:47:46
I just think this is inevitable. And I think that, you know, for all the founders and whether you're
00:47:51
>> pre-exit, postexit, or on your way to an exit, >> my advice would be that to quote Maya
00:47:57
Angelou, when a state shows you who they are, believe them the first time. >> This is the direction of travel in
00:48:04
California. And whether it's SEIU or whatever they do, this is where it's going.
00:48:10
>> They'd love to see something. Perhaps you said something that resonated with
00:48:13
me, which is the next versions of this will be better lawyered and more bulletproof.
00:48:20
I've had a team of people looking at this. The thing that is the biggest weakness here is looking at the fact
00:48:30
that this is a wholly new tax that is applied retroactively. And when you look at the Supreme Court at the federal
00:48:37
level, the case law on this, this is the strongest challenge that people will have and this is where
00:48:44
there is a prepoundonderance of evidence in the favor of people saying that this
00:48:49
is unjust and this is a taking and being able to use the Supreme Court to bat this back. Now, that'll take 5 and 10
00:48:57
years to litigate because it'll be there drawing itself through the courts forever. But when you look at the fact
00:49:02
that that will be the angle of attack that people will take if this passes, I 100% agree with you Saxs. If this union
00:49:11
were smart enough, what they would have done is say this is going to start Jan7.
00:49:17
It probably would make the ballot. It probably would pass and they would get all the loot and it would be very
00:49:26
difficult to legally challenge this thing. It was a huge miscalculation by that union. But in 28 or 30 or 32, this
00:49:35
will rear its ugly head. It will be better architected and there will be no way around it. And at that point, why
00:49:42
create an artificial line at one with nine zeros after it? Why? >> Why? And by the way, stupid go to 100
00:49:51
million. Get everybody. >> Whoa, whoa, whoa, whoa, whoa, whoa. Let's move that number up a little bit.
00:49:55
Let's get to Let's get it to 250. And if what we're saying is right, then why
00:50:01
would it not happen at a national level? >> Of course it will. Yes. They're going to
00:50:05
start chasing you around the country. It's just >> Well, because I'll tell you why. Because
00:50:10
we still have plenty of conservatives in the rest of the country. California is screwed. But we got to start stacking
00:50:17
sandbags around the rest of the states. Freeberg, you said something that I really liked in your post, which is it
00:50:23
begs the question, what will happen when California goes BK and then they go to the feds and it doesn't actually matter
00:50:33
who is in charge at that time. But let's think about it. If Trump were in charge
00:50:36
for a second, California knocks and says, "Hey, I need you to bail us out."
00:50:41
the deal that California would need to do with the president for that to even be palatable so that he could build a
00:50:47
coalition of Republicans around it. Man, California will go through tremendous pain
00:50:52
>> measures, >> but then go through the other side. So now imagine AOC's president, AOCC's
00:50:57
president. >> So she says, I got to do this and then when it goes to Congress,
00:51:03
how does this actually happen? This is again where I think Sax is right. As long as there is a 4951
00:51:12
kind of a balance, I don't think anything can really happen without meaningfully deep austerity in
00:51:18
California. >> I think there's a way out for >> now if the filibuster's gone by that
00:51:23
time. >> Yeah. >> And it's simple majority and then if there's a Democrat in the oval plus a
00:51:29
Democratic Congress. Y >> David, you're right because that is the one shot on goal that they have a
00:51:34
two-year window to run that play at the federal level and they will be able to get it done.
00:51:38
>> Now ask yourself the question, what happens to the citizens of Florida, the
00:51:42
citizens of Texas and the citizens of North Dakota and the citizens of all these states that pay federal taxes have
00:51:50
not had this problem in their state and they're basically paying Alaska. Alaska
00:51:54
has a >> surplus. Why would all those citizens and this is where the union starts to unravel and
00:52:01
that's where I get very concerned about where this leads. As soon as you allow
00:52:05
this asset seizure tax to pass even on a state level, the economic ramifications
00:52:10
or on a national level, the economic ramifications are inevitable that some states are going to have to bail out
00:52:16
other states and that's where things get very ugly. >> The bill will come to at some point.
00:52:20
There's a super easy out here for the Democrats or people who are supporting
00:52:24
this. Just go after fraud first, taxes second. That's got to be the mantra going forward. We're going to eliminate
00:52:29
fraud and waste and then we'll have a discussion about taxes. That's the only
00:52:33
way for them to find an escape hatch here. >> Okay. We have the moderates. You're
00:52:39
Yeah. I mean, like, but just just some interesting stats here. So, California collects roughly
00:52:45
double per capita what Texas and Florida do. So, California collects about $10,319
00:52:53
per taxpayer, whereas Texas 5,469. Florida 4,914. So, there's not an issue here of
00:53:01
California not collecting enough taxes. The issue is all on the spending. And on that
00:53:07
front, the California budget has doubled over the past decade while the population stayed flat. And in fact,
00:53:14
>> and services got worse. Service services got worse. Test scores got worse. Crime
00:53:19
prevention and enforcement got worse. >> Where's it going? >> They let convicts out of jails.
00:53:25
Everything's gotten worse. >> Where's the money going, Sachs? Say the
00:53:28
word. >> It's going to these government worker unions who have accumulated too much
00:53:33
political power. Look, you go all the way back to FDR and he was opposed to even though he was a for unions. He was
00:53:40
opposed to government workers unions because he thought they would accumulate too much political power and they elect
00:53:46
the politicians and then the politicians are the ones paying them. So they just end up extracting more and more and more
00:53:52
iteratively with every election cycle. >> It's the same as an antitrust monopoly
00:53:55
in a corporation. It's the same ultimate dynamics as having a monopoly in private
00:54:00
industry and corporations. It basically gives you a monopoly on political power and it gives you the ability to
00:54:05
monopolize assets. And that's effectively where we are now. They're at the point where one union is saying,
00:54:10
"I'm going to take the assets, hundred billion dollars of assets from a small
00:54:14
minority of people in the state." >> The reality is that a lot of it is the
00:54:18
pension obligations. You can work for the state for 20 years, retire in your 40s,
00:54:25
>> and you basically what you get like 90% of your your wage for the rest of your
00:54:30
life. It doesn't work. It doesn't pencil out. It's got to end. >> They use your last year's W2. So, you
00:54:36
stuff it with overtime, your last year, and you end up retiring with like 150% of your annual salary for life. It
00:54:43
doesn't even apply to your spouse, too. >> This was the promise that was given in
00:54:50
order to get the votes that have gotten us to the point we're at today. Because
00:54:54
that is how the unions operate, right? It is a system that drives political influence by making these sorts of
00:55:02
benefits law and brings them to bear. >> If the average retirement age is 50 and
00:55:07
your lifespan is 80, like this is way this is not how it was intended. People used to get these at 60 and they would
00:55:14
die at 68. It was like >> for the state at 22 and you can retire at 42. Actually, what a lot of people do
00:55:21
is they'll go then take a second government job and they'll stack a second pension. But yeah, you could
00:55:25
retire at 42 if you if you stuff it with over. Yeah, >> you can stuff it with overtime and and I
00:55:31
think it applies to your spouse as well. Just fact check me on that. But >> I know I'm aware of it in New York where
00:55:36
a little bit of this stuffing on the margins do does occur. I've heard >> I'm not against police officers and
00:55:42
teachers and and people getting reasonable. >> You you need to do superanuation funds.
00:55:48
You have to have people buying into the market over time. And the government shouldn't be managing this. It's just
00:55:54
the government is terrible at whatever it does and there's too much for them to
00:55:58
do. Let it stand alone. Take it out. Carve it out. You're you're forced to
00:56:03
put 12% into this or your employer puts a little bit into it and then we'd have
00:56:07
a very happy society. More participation in the market. It would solve so many problems. Okay. I just want to hit one
00:56:12
last topic. Congratulations to Greenland on uh accepting a very generous offer from President Trump. We welcome you as
00:56:19
the 51st state. Maybe that'll be happening any day now. US officials met with reps from Denmark and Greenland at
00:56:27
the White House on Wednesday to discuss how the US could take control of Greenland.
00:56:33
This has been something Trump's been talking about for years. And remember my
00:56:37
rule number one of President Trump. He says a lot of things. One way or another, we're going to get it March
00:56:42
4th, 2025. I need it for psychological reasons to actually own it. 2021. He said that we're going to do something
00:56:50
with Greenland, either the nice way or the more difficult way. January 9th, 2026. Denmark doesn't seem to want to
00:56:58
play ball. They say they have a fun fundamental disagreement about this. That being said, there's only 50,000
00:57:05
people there and it's a Poly Market's got it at 17% chance that we acquire it,
00:57:09
which is significant as a starting point. 50,000 people getting a half million or a million dollars each would
00:57:17
probably be a pretty good deal. It's a very strategic piece of land. If you look at what's happening with the
00:57:24
ice caps melting sacks and Russia positioning a lot of their ships up in the Arctic, there's a pretty clean shot
00:57:33
going past Greenland to the northeast of America. So maybe you could just talk about why this is and again you're not
00:57:39
speaking for the administration and it's not your lane but why is Greenland so
00:57:43
important. >> Well it is becoming more significant from a national security standpoint as
00:57:47
those Arctic ISIS melt and you have new shipping lanes that have opened up. So it is important on on that dimension.
00:57:55
But look, American politicians have wanted to acquire Greenland for a long time. The great Secretary of State
00:58:00
William Seard wanted to acquire it. He acquired Alaska. He wanted to get Greenland to was unable to make that
00:58:05
deal. But FDR and Truman both were interested in acquiring Greenland. It didn't work out obviously. So this is an
00:58:12
old idea that's new again thanks to President Trump. I think he makes a great point. Why does it belong to the
00:58:18
Danes? You know, it's a small country in Europe. It's not part of North America.
00:58:24
And I think if we can acquire it for national security reasons and resource reasons, we should. And I think the odds
00:58:30
of him pulling this off are much greater than 17%. Chimath or Fberg, you have any
00:58:34
thoughts on the 51st state? >> I don't know anything about it. >> Well, they don't have to become a state
00:58:39
to be clear. No, they can become >> Yeah. I mean, territory, whatever it is.
00:58:44
Yeah. Could be like a country club, whatever. It's it's important that we
00:58:49
get get memberships. >> This is a huge piece of real estate in the Western Hemisphere. It doesn't
00:58:54
really make a ton of sense for Denmark to own it. >> It makes a lot more sense for it to be
00:59:00
part of the US. And >> we're willing to pay for it. And I think that we can make them an offer that they
00:59:06
can't refuse. >> Absolutely. And it has >> We're gonna send Luca Brazie over there.
00:59:10
>> I thought Luca Brazzy off. It's got a lot of railroads minerals. There's a lot of oil offshore. Their big
00:59:19
export now is is fish obviously, but this has lots of potential, Freeberg, in terms of the resources. And um yeah, why
00:59:27
not get it done? Trump loves real estate. We got him for another three years. I say let President Trump cook
00:59:34
and if he wants to buy some other land, I'm here for it. I love building the
00:59:37
empire. This is my favorite Trump. >> Frag, you love this Trump or not. >> The old adage is there's always a deal.
00:59:44
There's always a price >> except when you're negotiating with the government. So, I don't know how that's
00:59:50
going to go. My understanding, my experience is that they do not want a deal. They're not interested. There's a
00:59:58
whole bunch of national pride associated with that. You can't break national
01:00:01
pride as we know as patriots of America. It is very hard to fight national pride.
01:00:06
I don't know if the economics are really going to play out, but security guarantees, maybe other benefits for the
01:00:13
the great kingdom of Denmark. There could be a strong alliance and partnership for the United States.
01:00:19
>> I think it could be important for the US to have a new frontier. You know, maybe what we can do is send all
01:00:25
these progressive socialists >> off to Greenland to tame this new frontier.
01:00:29
>> I want to go send Mandami there and they get that. >> We need that. We need that spirit of the
01:00:34
frontier of of cowboys, of exploration. >> Yes. That Mandami. He seems like a very
01:00:39
resilient, gritty guy. He'll come with his whole crew, the socialist Roana. Let
01:00:42
him set up there. Let's see what >> the idea of having what's called a
01:00:46
freedom province or freedom state or freedom city, >> economic free zone. Yeah.
01:00:52
>> Yeah. And and I do think if we if we are looking down the barrel of socialism in
01:00:56
the United States, which I think socially leads to a destruction of individual liberties and a degradation
01:01:03
of the social fabric in America, before that happens, it's important that those
01:01:09
who are on the other side and before they get overwhelmed with the votes and uh the elected officials that will fight
01:01:16
against them, before this all happens, it's important to think about carving
01:01:20
out illegal territory And that legal territory should allow for the resurrection of the great American
01:01:26
Union, of the great American spirit. And we should find a place within our sphere
01:01:31
of influence before we get overwhelmed to set up >> Texas, dude. It's called Texas. Remember
01:01:37
the Alamo. We're making our last stand here. >> Absolutely. The 50 calibers are up on
01:01:42
the ranch. I think it would be helpful to get something that's that's federally
01:01:45
set up, Sachs, that you could have like untouchable legislation that says this is not to be touched, this is
01:01:52
pioneering, whatever it is. >> Join the militia. We got a militia. And maybe Greenland is the place, but it's
01:01:58
something that feels it's got to be something that feels difficult, something that feels open, something
01:02:03
that feels a little bit untouched, and it's regionally encased with a set of
01:02:09
legislated things like Guam or Puerto Rico or something where you set set it up and
01:02:15
you're like, look, this is untouchable. It takes a a big action to change it.
01:02:19
Something where people can have protection against the uh the socialist milu that's on the way. You know, it is
01:02:25
kind of interesting as I remember from my high school history. I think the frontier was officially over at by 1910.
01:02:31
I think that was meaning every longitude basically had been fully exploritude and
01:02:38
longitude had been sort of settled. And that is when the progressive era kind of
01:02:43
began. And I do kind of wonder whether the frontier was this like escape valve for pressure that builds up, you know,
01:02:52
resentments that build up in the economy. People could always just go west and become pioneers and find new
01:02:59
territory. >> That's right. >> And in a way, that's what America was
01:03:02
for Europe, right? I mean, Europe was sort of this overcrowded place. it was uh oppressive and people just left that
01:03:09
they could opt out by going to America and settling over in what would become the United States and I kind of wonder
01:03:16
whether maybe we need something like that again >> and by the way all the discontents so
01:03:21
they don't become democratic socialist of America >> and for a while the digital frontier
01:03:26
became that escape valve but now that's being shut off and it's being closed
01:03:30
down and the place where it's been run from is being subjugated to the socialist. So the question is
01:03:37
what's next? I think it's a very good question. >> Well, the problem is that the the
01:03:41
socialists, they're not explorers. They're not pioneers. They don't create
01:03:46
anything. They're not builders. What they are is they're really good at hijacking existing institutions.
01:03:52
>> Mhm. >> And that's what they do is they take things that were created by great people
01:03:58
and they subvert them and they seize control. And that's what they're going
01:04:02
for is total control. first in California and then in Washington. But I do wonder whether the existence of some
01:04:09
sort of release valve might defer that day, right? Because you get less pressure building up in the system.
01:04:15
>> Yeah. >> All right. Another amazing episode and just want to give a shout out. Schmoff
01:04:20
did an amazing interview with my guy Howard Lutnik. >> That was fun, huh? Yet,
01:04:26
>> that was awesome. He was awesome. >> Yeah, I'm really impressed by him. And
01:04:29
Freeberg on a bit of a heater here today. We dropped an incredible interview with FDA Commissioner Marty
01:04:37
Marie. Am I pronouncing correctly? >> Carrie McCary. Great job there. And also
01:04:42
you're you got to hang out with your childhood hero. We grew up on Howard Stern on the East Coast, but you grew up
01:04:48
with Adam Corolla and you got to interview him. You were fanboy fanirling a little bit there at
01:04:53
the start, weren't you? >> Well, it was great to I'd never met him,
01:04:56
so it was great to interview him. I mean, he has a lot of interesting ideas. I got a lot of texts about his uh coined
01:05:02
term gynofascism which I think some people >> explain to the audience what watch the
01:05:09
interview watch the interview we don't want to get he was great you had to see
01:05:13
the start of this interview Javon Freeberg's like Mr. Carella I used to watch you and Dr. Drew uh talking on
01:05:22
Loveline and it really was formative in my years as a broadcaster and now I too am a broadcaster. It was really cute. It
01:05:29
was really cute. >> I never said I'm a broadcaster. I would never. >> You were like
01:05:33
>> I would never I would never degrade myself like that, Jacob. >> I actually am doing random acts of
01:05:40
broadcasting. The sun never stops on the All-In Empire. And I also did a a fun CES interview
01:05:47
with the CEO of McKenzie, Bob Sternfells. and uh Heymont from General Catalyst and uh that's up on the feed.
01:05:55
So four four 1 2 3 four interview shows waiting for you in your feed and to the mainstream media trying
01:06:03
to keep up with this. GFY gfy good for you have fun trying >> you guys believe that Jake has been
01:06:12
invited to Davos. >> I can't wait to see this. >> I'm bringing my acoustic I'm going to
01:06:17
tear IT UP. WE'RE GOING to have fun. Did you guys see me rage bait Twitter two
01:06:21
days ago? >> What did you say? >> No. What did you do? >> I put this thing where
01:06:25
>> you showed your legs. >> No. You remember when we did the interview at the end summit where
01:06:29
Tulssey talked about the Obama documents? >> Yeah. >> Well, this guy did a rant. I thought the
01:06:33
rant was great, but I just retweeted it and people lost their mind. Basically, he was calling for Obama's arrest.
01:06:42
>> God. >> Oh gosh. >> I said very casually, gosh, this is a really under reportported story.
01:06:47
>> Oh, I saw that one. to be. >> I'm wondering who that guy was, though.
01:06:50
I'm like, >> did Nap make you take it down? >> No, it's still up there. Still up there.
01:06:57
>> Wait, who is who is that streamer? >> I don't know who he is.
01:07:02
>> Saying Obama. >> Yeah, I don't >> I think he's he's said he met
01:07:07
>> Did you guys watch Nick Shirley's new video? >> Oh, no. >> He goes looking for himself.
01:07:12
>> Check this out. >> There's these transportation companies. They get $10 million a day in Minnesota.
01:07:19
>> A day. A day for non-emergency medical transportation. So the state will pay if you transport
01:07:27
someone that's autistic to Target to get them groceries 50 bucks a ride. And
01:07:32
there's a website where the transportation company gets to log into the website and they're registered as
01:07:38
one of the transportation companies and they're like, I took someone from this
01:07:41
place to Target. and you get and you fill out all these forms and then you get a check immediately
01:07:46
>> on the it's a trust system. >> They never investigate. They don't
01:07:50
audit. They don't check. Nothing. So Nick Shirley starts going around looking
01:07:54
for the transportation companies and it's like a liquor store. He's like,
01:07:57
"Where's the where's the transportation company?" Liquor store guys like there's
01:08:00
no transportation here. It's like a you know a burrito place like a deli. Like
01:08:05
all of these places are folks transportation companies. tens of millions of dollars a week just being
01:08:12
given out. And by the way, this is not a race thing. It does no one any good to cast this as being a Somali thing. And
01:08:19
that I think is what's getting everyone in trouble. The fact and it's and by the
01:08:22
way, it's what shuts off a lot of people to actually being able to look at the
01:08:25
fraud. And it's not about the Somali people. It's about the fact that fraud
01:08:29
is allowed by the government. And it's about the fact that the government either is implicit or complicit in this
01:08:36
fraud. And I think that that's what people need to pay attention to and and ignore all of the rattings about what
01:08:42
community or what group or who's doing it and just focus on the fact that the
01:08:46
government lets this happen. If you think about the state of California spending $350 billion a year and you ask
01:08:51
yourself the question, are those government agencies and the agents in those agencies doing their job of making
01:08:58
sure that there's no fraud taking place? There is no way anyone's going to raise
01:09:01
their hand and say yes. They're great fiduciaries of taxpayer money. And that's what we should all be paying
01:09:06
attention to and get out of the political divide on all this and the racism and all the and focus on
01:09:11
the fact that the government does this All right, everybody. Another amazing allin episodes. Thanks. Thank
01:09:16
you for tuning in. Like, oh, by the way, guys, we hit a million subs on uh YouTube. They sent me
01:09:22
a gorgeous plaque. I'm putting it up in my office. It's amazing. And >> at the million plaque, it's it's great.
01:09:29
The all the team autographed it and wrote a really nice note. Yeah. Can I say something?
01:09:34
>> Yeah. You're welcome. >> You're welcome. Jamal would like to say
01:09:37
you're welcome. >> You're welcome. All right. See you at Davos. Kumbaya Davos. We'll see you
01:09:44
there. >> We'll let your winners ride. >> Rainman David. >> We open sourced it to the fans and
01:09:56
they've just gone crazy with it. Besties are gone. >> That is my dog taking your driveways.
01:10:14
>> Oh man, my attacher will meet the place. >> We should all just get a room and just
01:10:18
have one big huge orgy cuz they're all just useless. It's like this like sexual
01:10:21
tension that we just need to release somehow. Wet your wet your feet. We need to get merch. I'm going all in.
01:10:39
I'm going all in.