E148: McCarthy ousted, border chaos, Cruise's robotaxi "accident" & more

how was your colonoscopy by the way oh well uh that was uh talk about your anus talk about my anus have you guys had yours recently who's had a colonoscopy I have mine in December my yeah my first one yeah I was delinquent on mine too they it used to be 50 and they moved the age down to 45 yeah they did move the age down free Brook have you had one yet that's a yes we got a yes SX have you had yours I'm do by the way I got a report because actually saaku did have one and they found a bunch of disantis merchandise up there you found a disantis hat a disantis pin tons of disantis stuff right up your ass at our age we should be four for four on the colonoscopies we're one for

four we got to get that stat up every week I want to check in here propal uh shout out Michael Jackson is the greatest drug ever I counted 15 seconds I was knocked out I woke up and the next thing I know I was in the recovery area were you groggy I was not groggy no I was fine you literally don't remember anything no pain no suffering I did have were you able to have a regular schedule the rest of the day not really so I don't want to dissuade anybody from having this but you do have to take a drink called prep which clears you out and when I say clears you out I love that oh I love that it clears you out

yeah I hit a record low weight I'm 168 now so that was the one benefit how much weight did you lose three pounds maybe come on oh yeah yeah yeah were you working when you were prepping no I was working when I was prepping so Monday when I was prepping but then literally you take this prep stuff an hour later you you need to be ready to evacuate at any time normally the diarrhea is coming out of your mouth absolutely absolutely well play there's your called open folks let your winners ride Rainman David and instead we open source it to the fans and they've just gone crazy with it love all right everybody welcome to

another amazing episode of the Allin podcast episode 148 the docket is absurd the number of lawsuits and the amount of news that has happened in just the last week has been insane uh but we want to at the top of the show do a quick correction right it's an all-in correction if we make a mistake here we don't hide it in the show notes we just talk about it right up front saak you were in touch with the a table CEO Hoy Lou who's been a guest on this weekend startups I'm going to have him on again actually soon maybe you could just discuss what we got wrong and how we got it wrong and then what the correct facts are about air table just quickly here at

the top of the show yeah well we had a segment a couple weeks ago where we were talking about these high price late stage unicorn rounds needing to get revalued and the IPO of instacart was a good example of this where yes it ipoed at about 10 billion but the last private round was at 39 billion so there is a big wave of revaluations or down rounds coming and we s Ed some numbers off the internet regarding air table as it turns out not everything on the internet is true and you're talking about specific journalists might have gotten it wrong we would say this is actually a tweet storm on X that from a financial account that you know appeared on the surface to

be correct and in fact it did have some correct information but it was outdated it was stale so just the the quick correction here is that the the amount of ARR that we cited which I think was around 150 million was accurate as of the time they did the last round but that was like 3 years ago furthermore the growth rate that was cited which I think was around 15% that was off that was off by about a 3X uh multiple so when you put all these things together I wasn't able to get the exact numbers but if you just do a little bit of napkin math here my guess is that air table is somewhere in the half a billion of ARR club with pretty decent growth and if you look at the public comps for that I

think the public comps be something like a Monday you know which is doing sure five to 600 million of AR coming off a 50% growth rate maybe forecasting 30% for the next year that company has been hovering around the s or eight billion dollar valuation range 12x yeah the claim that was made on X was that air table wasn't even worth the 1.4 billion that is raised in uh money I think that's way off I mean yeah and furthermore you know what we heard is that air table still has something like 2third of the money that it's raised in the bank so look is air table worth the 11 billion that it was valued at at the peak probably that's not what the public

comps indicate would I be a buyer personally at roughly half that price for sure for sure and I think it'll have a nice IPO at some point when they decide they want to do it so just an important reminder for everybody is uh you know listen if information is on the interwebs it may not be correct but the top news story in the country is uh unequivocally Kevin McCarthy being ousted as Speaker of the House on Tuesday he was voted out in a 216 to 210 vote with eight far-right Republicans uh joining all of the Democrats uh so those eight GOP members include or led by Matt

Gates obviously a group of I guess what would be best described Sachs as tea partyes members of um the the GOP contingent they they care mostly about spending and curtailing spending am I correct don't don't forget all the Democrats well yeah I'm putting the Democrats on I already cting them I'm just talking about the eight who made this tip over the media is trying to portray them as these farri you know Wingers and I don't think you can necessarily say that because I don't think Nancy mace fits in that group I think she does care about spending but she's not far about spending I mean far right to me would be that's exactly right I mean anything that the media

doesn't like they label far right but I think you know Nancy ma is a good example of somebody who is very concerned about spending discipline but is not like a Maga type Republican but but is the and just to to just refine this one more time before I keep going those eight would the Common Thread would be control spending we're at we have out of control spending is is the reason they're voting a no vote for Kevin McCarthy I think there were a couple other pieces of this um if you listen to Nancy ma some of the other people that were involved here a lot of the issue comes down to trust they felt like they could no longer trust Kevin McCarthy they felt like the things that

he had told them in private were not matching up with the things that he would then later do or that he would say in public or that he would tell the Biden Administration so I think that and their main issues were well I think there's a couple one was on spending he had promised that he would stop doing these giant Omnibus spending bills where everything would be lumped into one one bill you get like 24 hours to read it and then you got to vote up or down on whether you pass this giant spending bill or shut down the government everyone feels forced to vote for it he had promised to do single subject spending bills so military education welfare whatever yeah that goes through

a regular budget process so they felt like he had broke his promise on that I think also on the issue of Ukraine there were some trust issues there because what he was telling Republicans in private was not what he was telling the Biden Administration in private where he was telling the B Administration don't worry we're going to get the Ukraine funding through but then he was sounding different notes with various Republicans and I think his true feelings on the matter came out in this press conference he did after he was ousted in which he goes on this long rant about how Putin's the second coming

of Adolf Hitler and if we don't stop him now he's going to be you know marching into Paris and I mean it was sort of this like unhinged second grade American history style a view of of the war which regardless of what your view is on it I think it expressed his true feelings on the matter which is that when push came to shove he's more hawkish than Joe Biden on the issue of Ukraine he feels that Biden has not done enough it's safe to say that that position is now very out of step with the Republican caucus so he is pushing a view on Ukraine that is now very out of Step moreover I think that if he had just acted as an honest broker on the issue which is to say

listen I'm just going to represent the views of my caucus my caucus is divided on the issue I'm just going to let them have an up or down vote on it then I think he could have survived on that issue but instead again I think he was trying to manipulate things in a direction of continuing Ukraine funding regardless of the views of his caucus Gates wants to end cr's continuing resolutions uh those extend the funding deadline from October 1st to the holidays claiming this buy Congress time to lump all those individual farman bills into the omnimusic the context that I think is important that I think is that the American public should understand is how

is this actually supposed to work so that we don't normalize what these CRS are so the way that it's supposed to work is that Congress is authorized by law to create 12 spending bills a year and each of those bills have to map to the large parts of the government so there's a military bill there's an education bill there's a you know HHS Bill etc etc and those are supposed to be negotiated on the house floor and passed the Senate is allowed to do a version of the same if those two things are different meaning the Senate doesn't take the house bill and creates their own the law says that you have to create what's called a conference and a a group

of people half senators and half Congress people sit in a room hash out and mediate a resolution and that is what goes to the president's desk to be signed that's how it used to be done but about a decade ago all of that broke down and now what happens is you have this thing that sax mentioned which is called the CR which is essentially a back door it's this release valve that is supposed to be a in emergency break glass type measure that has become fundamentally normalized and I think what's important to call out is what happened here isn't getting the just attention because it's being characterized on party lines and

not actually being characterized with how America is legally supposed to work as defined in the Constitution so the Congress is supposed to pass 12 spending bills a year it's then supposed to get negotiated or approved by the Senate and then it should go to the president when you override that with these continuing resolutions this is the issue that freeberg has been talking about you balloon the deficit you balloon the debt you have all kinds of pork barrel spending there's zero accountability the bullets cost $6,000 the umbrella holders cost 15,000 all of this nonsense that just brings us closer and closer to some sort of default or economic contagion so

I actually look at this issue not as Republican versus Democrat the far right-wing I think that's misguided interpretation by the mainstream media I think what this is is the first chance in a while where you're not allowed to pass a continuing resolution where you will have to propose 12 bills the way the law says you're supposed to and what that'll mean is that you'll have to negotiate a compromise to get those 12 bills passed now what's crazy is the Senate actually has six of those bills on their desk and they haven't even negotiated it and I think the reason is because they know that the CR is always in the offing but if this continuing resolution is not allowed because you

fired the speaker then they'll have to negotiate those bills and part of what McCarthy did to get elected was say we will return to the law and not use the in emergency break class and I think that's what's not it's not understood well I think by Americans as that is the actual process we haven't been doing it for a decade and I'm not a fan of gates but I'm glad that somebody did this because somebody has to draw a line in this end the Republicans and Democrats equally have been responsible for breaking the way the American government spends money and so this is the best way to fix it freeberg you agree with what's gone down here and that that this is worth

shutting the government down Etc or do you think this is like uh where to make the stand because you've been very Pro controlling spending uh asfi and so do you think that this is the the best way to do it I guess it's more about the United States is facing a emergency national debt reported by the treasury Department increased by $275 billion in a one-day report yesterday $275 billion in a day the entire tarp program during 08 was $400 billion that's how out of control our fiscal condition is and this is a function of rising rates a function of spending and you know as we talked about many times over there's an arithmetic to this that at some point it becomes ever escalating

until you step in and do something dramatic about it so I'm hopeful and I mean there's a lot of rhetoric you can watch all the news channels and see a lot of these Congress people get on camera and talk about different things I think we're seeing more frequently now people talking about the fiscal crisis that the US is facing and that this action provides a mechanism as chamat points out for forcing everyone to the table to figure out how do we reduce the impact how do we chart a path to a solution because right now if you asked anyone in Congress what's the Strategic plan here there is not going to be an answer from anyone everyone's got a different point of view and

everyone's fighting over the deck chairs on the Titanic and we've got a more significant problem we're hitting an iceberg so yeah I'm hopeful that this causes hopefully a turning point in The NeverEnding spending spree where everyone gets elected and everyone promises to the folks that they're representing and the folks that funded their political campaigns some amount of money back out from the government and everyone gets that free money and at some point something's got to turn around or the whole thing kind of goes down so hopefully this is that moment I don't know saaks do you think that this is by the way if the government shut down for weeks and months to try and

figure this out and for everyone to get aligned with here's the long range strategic plan presented to the American people on how we prevent the US from either inflation or bankruptcy then I think everyone will feel like it was worth it saxs has been tons of speculation about what this is what's what this is actually about is it about Ukraine is it about out of control spending is it about Matt Gates and Kevin McCarthy having some sort of personal grudge against each other what do you what do you think is at the core of this saxs well probably all of the above but I think it's fundamentally a rejection of the status quo Kevin McCarthy if nothing else is a figure of

the status quo I mean he's worked for 20 years through the system he's a great fundraiser I actually attended an event for him down the street here and of course all the donors love him and look I like Kevin McCarthy I've contributed to Kevin McCarthy but at the end of the day I'm not sure that Kevin McCarthy is a guy who's going to get us out of this mess and the fal problem is he's just too conciliatory and the idea that you're going to impose spending discipline and get us out of the budgetary mess that we're in the idea that you're going to make that omelet without breaking a few eggs I think is just kind of silly so I think we need a tougher speaker who's

going to actually live up to the promises of stopping these omnus bills going back to single subject bills who is going to represent the views of the majority of the Republican caucus on you know indefinite infinite Ukraine spending because he's kind of off center of the Republican party on that why can't the Republican Party be in unison on this is is explain what the what's the rift inside the the GOP right now well actually has debates in this party what you see is the Democrats are in Total Lock step and they just support whatever is the status quo but the Republicans actually have debates inside their party and there is a big debate right now on

how we handle Ukraine and I think there is growing opposition to a blank check as long as it takes policy towards Ukraine we've already appropriated over a 100 billion what's the return on investment of that the counter that's the key you think that's the key not the the CRS I think it's both of those issues isues combined with the fact that increasingly McCarthy was not seen as an honest broker listen I think McCarthy could have had whatever views he wanted to if he was perceived as somebody who actually represented a majority of the Republican caucus but what Nancy May what Matt Gates what these others who rebelled were saying is listen what Kevin told us is not what he did and I

personally witnessed this aspect to McCarthy okay so when I went to this event down the street here I heard him gave this whole po rant and then afterwards I came up to him and said Kevin what are you talking about do you really want to cause World War III and all of a sudden he backpedal and he started saying these conciliatory things and I was like okay maybe he just went on this like toot where you know it was kind of off topic toot he tooted he to did you reto it but a after I kind of had this like sidebar with him I'm like okay maybe it's not so bad maybe you know I think he he promised that he would impose saying he's in the pocket of special

interests let's be clear well I think he well no not quite Jason cuz he didn't quote toot it he's just he quote to it he just twe heed it what I would say is that he was really good in any particular meeting at saying conciliatory things to get somebody to like him and to get their back is what you're saying well I mean I think a lot of politicians are and so he told me what I wanted to hear I think he promised that he would get would you have been with the eight or with well guys the fundamental I'm CU would you have voted with the eight or would you voted with the rest as if you were I think I would have voted with the eight I mean even though I like look I like

McCarthy he's a likable guy but again I think that press conference he held revealed the truth of it which is okay he was bsing me his real view is that we need to support Ukraine for as long as it takes and he told me something different his Grand bargain was that he would stop these continuing resolution pork barrel bills that was the Grand bargain that was the thing that said and if I don't do it you guys can vote me out do you guys remember this yeah you know that was his negotiation so this really was kind of like a feta comp the minute he decided to pass yet another pork barrel Bill he also seemed kind of frustrated that like he just he seemed like he was spent in dealing with all

this it surprising to me is why the Republican Party allowed Matt gates to get all of the attention and to be like the organizing principal because he's such a loathsome individual to so many people both in the Republican party and outside the guy the guy broke a fundamental promise and that promise wasn't that provocative it's just like yeah we're going to pass 12 bills we're just going to follow the law and he couldn't follow the law and so why doesn't anybody else stand up why does it have to take these eight kind of coalescing with with the Dems it's it's really nutty actually yeah it's a very strange series of events and by the way

I think you make just your last point there this would not have happened if hakeim Jeff didn't send down word that all the Democrats were supposed to vote with Matt Gates I think that this is a vote against their long-term interest because the fact of the matter is that Kevin McCarthy ultimately was a very pliant speaker and he was giving the Democrats what they wanted on spending on keeping government funded and open Forever at higher and higher rates of spending and on Ukraine they're never going to get somebody who is more compliant to your point I think what what is really interesting and hopefully beneficial for America is we've broken the seal on unseating the speaker inter

term if they kind of like violate a handful of these defined things and I hope one of these things is the best thing we could do for America is just force all of these folks in Congress to negotiate 12 bills a year keep them busy focus on those bills get to like a compromise get it to the Senate get it voted get it to the president sign it that's it if they if they just did that we would probably spend a third to half of less than we do now is Gates the winner all this does he look like by the way just just so you guys know like when you try to propose elements of a bill right in one of those real bills okay it has to go to the the CPO and it has to

get scored right so for example we've tried to propose certain aspects of legislation and no matter whatever we think about it there at least is an independent body that scores it and says here's the x-e cost the Y your cost here's the benefits and so you get a very clear sense and a transparent sense that's published everybody about what this is in CR you can avoid all of that stuff there is no close study of any of this stuff and you know David is right you get it on a Thursday night at like 8:00 pm and you vote Friday at 6 you know or like at at midday how is anybody supposed to approve a multi- trillion dollar package logically you know it's riddled with

nonsense and it makes no sense that you don't break up the work and do it thoughtfully each time I guess should they change this ability for one member to propose a resolution to remove the city speaker yeah it's comically easy to vacate the speaker based on the rules they passed however I think it's important to understand why that rule happened it happened because McCarthy was so desperate to become speaker if you go back to the history of this thing McCarthy was actually passed over for speaker back in 2015 when he made this Gaff on TV about the Benghazi select committee being set up to hurt Hillary's poll numbers obviously that wasn't an admission that

helped Republicans and he only got the job this year by making it so easy to take it away from him and remember they did like 15 rounds of voting so this is the problem frankly one of the problems with McCarthy is he is a little bit too desperate to have the job sometimes when you get a guy who is so desperate for a job they're not that effective in it because they're too worried about it being taken away what you want is a guy who's like look take it or leave it I could do this job or not do this job that's the only way you're going to get somebody tough in the job I think the guy they should look to right now would be Jim Jordan I think Jim Jordan would

be excellent because at the end of the day you want a speaker who's going to be feared not loved like Nancy Pelosi quite frankly you need a republican speaker who's going to be tough who doesn't give a if you like him or not I mean this is I think Kevin's downfall is that he cared too much about people liking him as a result in the room he would always tell you something that you liked but the problem is that he can't deliver on that yeah so let's get ready to move on to next topic but just a final question here do you guys think a shutdown in a couple of weeks because that's uh how long the extension is would be productive for the country if

it if it becomes the back stop against out of control spending if it stops the CR process it'll be effective to the tune of above $500 billion it'll be half a trillion dollar effective so the a couple of weeks of the the government not spending money meaning if you if you kill the Omnibus Bill yeah and or you have like an extremely slim down version of that bill and you revert back to this 12 bills a year process that's supposed to be the law it'll be more effective you you'd save half a trillion dollars probably yeah just finish the point on that I think we have to just look at this Wall Street Journal article that came out this morning where it was called Rising

interest rates mean deficits finally matter finally there's a recog we called it we called it yeah finally there's a recognition both politically and economically that our deficits and debt are too big and the key point of this article is it says most of the increase this is in long-term rates is due to the part of yields called the term premium which has nothing to do with inflation or short-term rates so until now our interest rate problems have been about the FED raising short-term rates to combat inflation now we're seeing a separate problem which is long rates are going up and the long rates are going up

because of this concern that the federal government has too much debt and so Bond holders are starting to demand a higher long-term premium to hold that debt it's what we've been warning about for a long time now and it's finally happening so unless the political system gets serious about reducing deficits even if inflation comes down and even if the FED Cuts short-term rates you're going to have a problem with long-term rates remaining high and that is going to keep the cost of Capital High and that is going to reduce long-term innovation in the economy it's bad for us it's horrible for us yeah terrible for us

let's go to another troubling situation what's happening at the southern border obviously videos of migrants crossing the southern order are all over X Reddit YouTube Etc one side saying it's chaos the other side uh arguably been ignoring it so let's start with the two numbers that we actually know put a bunch of time into trying to figure out if there are any accurate numbers talk to a bunch of people on Twitter and other places there are only uh we have very very flawed data on what's actually happening there we do have anecdotal videos obviously our friend Elon went down to the border and did a video himself the best data with the caveat that it's very flawed is the count of

Encounters this is not folks who get through this is folks who were encountered so this is the official southernland uh border encounters from the US Customs and boorder Protection Agency since 2022 2020 and 2021 there were obviously coid issues on the border so it was much more lock down uh half a million people in 2020 1.7 in 20121 2.4 rounding up there and in 2023 supposedly rounding up 2 million through 10 months tracking on Pace for 2.3 the exact same as last year however it certainly doesn't look like that it's the exact same again that's from the border patrol and that is encounters not actually people who got through and then

the border states are saying that those numbers are wrong and there's a lot more people getting through and Eric Adams in New York where a lot of these people are being sent and this has obviously been the most politicized issue I think of the last decade Governor Abbott in August of 2022 quote New York City is the ideal destination for these migrants who can receive the abundance of city services and housing that mayor Adams has boasted about within the sanctuary City here are the clips and then I'll get your responses from those when we get back this is horrific when you think about uh

What uh the governor uh is doing the governor of Texas but we are going to set the right message the right tone of being here for these families before we begin busing illegal immigrants up to New York it was just Texas and Arizona that bore the brunt of all of the chaos and all the problems that come with it now the rest of America is understanding exactly what is going on all right so this is obviously something that New York City is unable to handle those are from August of last year when this was flaming up according to Abbot Texas has given bus tickets to 42,000 migrants and as of late September 119 migrants have arrived in New York City since the spring of 22 about 13% of New

York City migrants have been bust in from Texas I'll stop there and just get your general reactions to what you all believe is happening at the border since we're getting a highly politicized take on each of these it's become super polarized and the numbers uh any accurate numbers do not exist sax I don't think it's hard to understand what's going on at the border I think there are people who well I said it's hard to understand the numbers of what's going on with the bo I don't even think the numbers are that hard you have a better source of numbers I have some numbers that are similar to yours but

okay so statista goes back to 2019 so the numbers I have are about in 2019 which is when rain and Mexico went into effect the number was 851 th000 then it went down to 400,000 because of coid and title 42 then in 2021 we had about 1 .7 million which was a new record then in 2022 we up to 2.7 million which was a new record and the question is what is happening in 2023 obviously we don't have a full year of data but given that we've eliminated Raina Mexico and title 42 I don't think anybody seriously doubts that we're headed for a new record and in fact the Washington Post had articles in August and September saying that those months were alltime

records and now they're surpassing 11,000 daily migrant encounters at the border just twice last week so and you know what what Elon reported from the bo send that link can you send that link so we can pull and then also just wasc news that statista is um an aggregator they don't do primary research to see now so which one those numbers were pretty similar to to yours maybe from the same Source who knows we also have the video evidence we have the fact that you know Elon went down there and reported exactly what we're seeing in other context which is new records virtually every day and every week and every month the board border patrol agents are

basically being overrun and so you made the correct point that this only measures encounters it doesn't uh measure the actual number of people going through well if border patrol is overrun then the number of encounters relative to the number people getting through is obviously going to be very understated so I think we're on track for another huge record in 2023 and the point is that the pace is accelerating Elon gave the simple math there's eight billion people in the world how many of them would want to be in the United States if they could probably billions at least half of them yeah at least half of them and I don't blame them okay I want to be in the country World okay but

obviously we can't handle all the people who want to be here and the word has gone out via social media via Word of Mouth at the border is effectively open and we've seen numerous videos it wasn't just Elon when RFK went down there to Yuma Arizona count a big hole in the wall and people were just lining up and and well but it was 100 different countries right I mean we we it was from eag the is you've got all of these different points where there is no wall and people are just lining up and being let through and in some cases they're just running through because the border

patrol is is overrun so we effectively have no border I mean let's admit the truth now yeah and I think that the mainstream media and the Biden Administration their policy was basically See No Evil Hear No Evil and to deny the reality of what was happening Eric Adams was one of the first Democrats to break ranks saying listen we can see the migrants uh lining up in tents going around the block we are trying to put them up in hotels it's costing us 12 billion we can't afford it but Eric Adams has always been a little bit of a Maverick inside the Democratic party we talked about how he was tough on crime during the chasa Budin era

which is why I supported him he's a moderate but he was a moderate but then you had Kathy hokel who's the governor of New York who's nothing if not a machine politician just in the last week saying we cannot handle this so she broke ranks which was I think a big news story and now the latest is that the Biden Administration itself might be breaking ranks I think jamath you posted a really interesting story that mayorcas who's the Secretary of DHS just posted a notice in the Federal Register which said there is presently an acute and immediate need to construct physical barriers and roads in the vicinity of the board of United States

they don't say wall don't say the W word just in order to prevent unlawful entries into the United States now there was no press conference on this the way that this got reported is some reporter was doing their job keeping track of the Federal Register and saw that mayorcas had posted a notice saying that they need to construct a wall now Biden hasn't said this no one on the administration said this but clearly for obvious reasons yeah for obvious reasons so Jason what do you think the obvious reason is well the obvious reason is Trump entire presidency was predicated on hey we're going to build this wall and but I'm saying go back and say that he was right

is untenable to even at the of National Security it's like yes and so they're going to do the right thing obviously and build the wall but they don't want to say it so it's just ridiculous but just one important point to what David said New York City has a right to shelter so that means every immigrant who comes there they have to put them in a hotel and these are like turns out $4 $500 a night hotels so this has become cataclysmic there obviously needs to be a border and uh it's ridiculous to say there shouldn't be a border nobody believes that I don't know why this Administration just can't admit that there needs to be a a border of some

kind and we could talk about what that is but well no actually it's a better solution than a wall but we'll get to that um what is it well I I don't want to jump chath he had something to say so Cham I'll explain it in a second if you want or I can jump to it no jump to it jump to it okay so obviously people are talking about a wall walls are a terrible solution uh because there are ladders that can go over them pretty easily what you really need to have his eyes on it and the two best Solutions you can see them here Israel has had a really they understand borders really well and so what you're seeing if you're watching are these um Towers which do a

great job of monitoring the border and you could put about 2,000 of these towers they they have a range of easily a mile this is neg border by EIT systems this a Israeli based company it's 160t surveillance Tower andrel actually has a Sentry Tower as well our friend uh friend of the OD Palmer luy company andril uh and obviously oh and the the border patrol already has 10 of the towers why do you see has an either or I'm just curious like why would I think that I think that these smart lamposts as I call them are the number one first thing to do because you could deploy these in a fraction of the time you could have 2,000 of these in under a year for $4 billion and so these only

cost $2 million each the 10 towers that we're put in were put in at 26 million in the pilot so if you put 2,000 of these towers in and you just picked four different vendors so they do 500 each and you test them that would be $4 billion that would be nothing what do you do when you when the camera spots a person you send uh intercepts there and then you build the walls where people are crossing most so that would be my they're Crossing most they're Crossing obviously you build you look for hotpots David so you would but we don't there's hot spots that we don't know about so I'd say you deploy these for four billion very quickly and then wear their

hotpots you obviously build walls but you're still going to need can I be frank about this sure be as Frank as you like look regardless of what you think about Trump this mayorcas revolation completely and utterly vindicates his approach to wanting to build a wall and there's so many people who won't just admit that he was right that we need a strong border wall not because it's perfect not because you can't climb over it if you have the right tools but because a wall is more defensible than an open field now look I'm all in favor of these towers and the cameras and my understanding is that a lot of the parts of Trump's wall did have cameras on them

yeah I know he he get point is that you have video now coming out of thousands of people streaming across running the word is out you need a wall to stop that you also then need cameras and Border guards and all the rest of it just so you know 2,000 miles of wall is going to be like a decade long project so that's my only Point okay it's only a decade long if you allow all of these core challenges that are designed to frustrate it the fact of the matter is and look we don't need 2,000 Mi of wall because there are a lot of natural barriers along the border you know where you have deep rivers or mountains or whatever we're not going to need the

wall however there are pieces of the wall that were literally laying on the ground they were unfinished from Trump's term by the way Trump should have gotten that done he didn't in any event whatever the point is the bid Administration was actually selling those pieces of wall for scrap metal for two cents on the dollar this was a story that came out now they're admitting that we need the wall that was pure politics that makes no sense they had the construction Ru materials they should have just finished it yeah the American ridiculous that's like crazy it's because the American government didn't like who said the

right thing yes and the tone in which he said it yes and they didn't like the the separating of children from whatever and they politicized that both parties are equally just gross at this issue it should be a point-based system you lock the border and you allow people in you know as I've said 10 times on this podcast based on Merit what they're going to contribute to our society that's that's recruitment some amount of people who are need Asylum because they're going to be murdered I.E Afghanistan people who supported us afghanis who supported us during the war and then finally the orderly process of

people applying to come in here do your jobs everybody this article please Nick what happens when you get to the Border guys do you just get admitted to America this is insane okay the bid Administration started auctioning off what they called spare border wall parts okay I mean how does Biden live this down I think this could cost of the election yeah you're 100% right about that yeah yeah I think this is like this is a setup for a very bad ad absolutely yeah I mean I think this is just because it's become so politicized point-based system recruitment over chaos build a wall build do what do you do in the meantime there there are tens of thousands of people a day hitting the

southern border National Guard we have something called the National Guard we send them there they have to be deployed anyway you just deploy the National Guard ter but say more say more like you would put the military to basically turn these people around of course of course you turn them around yes that's it you bu National Guard will be quickest the towers will be second quickest and the wall is going to take forever but you need a wall but how do you but how do you process the Asylum claim because isn't the whole point of Asylum like you can't send them back to this country in which they're going to be killed in and so it's an imperfect process chath obviously so saak and I and a few other

folks we held a fundraiser for Vi ramaswami last week and we talked about this a lot and one of the things that we learned is that all the people that come to the southern border are trained in YouTube and Tik Tok and Instagram exactly what to say so that you have to accept the Asylum claim and for the Asylum there should be a limited number of them that's it just you have this many per year I understand but but you don't know whether that person who was helping us in Afghanistan ends up coming in October and not in March and that's the reason why they can't get in the the thing that I learned is that it's a it's a specific script it's available in multiple languages right so anybody who

gets to the southern border knows exactly what to say so that America is forced to accept you that's not how Asylum should work the bad news is not everybody's going to get in not everybody will get in that's it Jal there's two things we need to do in addition to to your point about sending troops to the Border because we do need the Manpower yeah it's obvious number one to Chamas point you can't just say the word Asylum and get in that doesn't make sense you should have to produce evidence of actually meeting the the the case for Asylum which is not being economically disadvantaged it's being politically prosecuted where if you're yes sent back to your home country

they're going to put you in jail or kill you and there aren't many countries in the world quite frankly where that is going to be a valid claim just to be honest about it I mean if you have a freedom fighter from Iran coming over who's going to be put in jail or killed let him in but that's not most of the people lining up at our border if you're coming from Mexico there's a very small chance that you are being the you got to do is you got to reinstitute remain in Mexico that was the policy yeah you can't have just waiting on this side of the Border because they're never going to show up in court yeah I mean listen we we want immigration to this country

it has to be logical and the fact is everybody wants to come here that's a great thing we should be taking advantage of that but it can't be chaos it's got to be orderly that's what everybody wants I don't know why how this became a political issue everybody wants orderly everybody wants recruitment nobody wants an open border well but but Jal in order for it not to be a political issue you need both parties to agree and they currently don't I mean think about it what's in Biden's interest right now is to do a 180 on this issue before it's too late he's got to do it yes absolutely and it's very simple for him to say which is but he hasn't done it because everybody

knows that the Border doesn't have a wall we've seen an increase there's been a 10x increase this the situation on the field has changed therefore we're going to change and to do all these things and if one of them is building a wall and you want to say Goa you can say gotcha but it's the right thing to do because data has changed my opinion where do we get to the point where data can't change your opinion data should change your opinion the data is clear that more people are coming through that's why I made such a point at the top of this is like we don't even have good data what these

sensor Towers would do would at least give us data and would give us Clarity and then you only need a you know a unit every half mile so you need 4,000 units patrolling the the border and they would catch everybody this isn't as expensive as people think it is this could be I mean the the last the last amount of money we gave what was the last appropriation for Ukraine saak since I'll give you a red me well we've already appropriated or authoriz over 100 billion and they're asking for another 24 billion okay so for three or 4% of that cost we could have these sensor Towers it's crazy we're defending Ukraine's border but not

our own it's a very valid point independent pop Republicans arms it's this combined with the the lack of fiscal discipline now the craziness about this is if we were sitting here 20 years ago the Republicans were trying to open the border to have more low skilled workers to work in restaurants to work in businesses that's not the place we are today we have too many people coming in these are not just it's even worse low sced workers to to pick vegetables it's a different group there was a point in time Jason where the Wall Street Journal editorial page which is really The Voice the GOP establishment yes supported a constitutional amendment in favor of an open border this was very

much the point of view of the old Republican party which was this libertarian open borders open trade free markets position and the results of those policies have been partially disastrous I mean I understand the value of free trade and so forth but and obviously want to have high sched immigration we've talked about that but it was too much of a good thing I mean they didn't draw intelligent itions but we still have I think this to your point about the Battle inside the Republican party we still have that old GOP establishment and now there's this new populist Wing that wants to make I think sensible changes here's the Wall Street

Journal story from 2001 open after borders why not there it is yeah that was Bob Bartley who was the longtime editorial page editor he was kind of like a hero in the conservative movement when I was in college I read a great book by him called the seven fat years about supply side economics and I think he was right about a lot of that stuff but along with that Economic Policy came I think this open borders completely open trade view that I think produced a lot of negative results and has to be Revisited and by the way there's a third leg of that stool which is forever Wars The Wall Street Journal is one of the most pro-ukraine Publications there is both in the news pages and in the

editorial page and they have never Revisited the results of our disastrous foreign policy where we keep intervening all over the world this is the old Republican party there's a new Republican party that is emerging and unfortunately Kevin McCarthy found himself on the wrong side of that divide all right so moving on to our next topic uh there was a notable accident with a cruise Robo taxi in San Francisco this week or not this is Being Framed by some as the first automated Cruise vehicle to get in an accident but what actually happened is not not accurate so there was a hit- and run incident in San Francisco a woman was struck by a human driver that human driver fled the scene

the hit and run launched tragically the woman underneath a cruise vehicle the cruise vehicle break aggressively according to cruise but stopped with its rear tire on top of the woman's leg police asked Crews to keep the vehicle in place and lock it which they did emergency respondents arrived and used the jaws of life to get the car off the woman's leg local media the story up and the police asked Cruz to leave the car leave the car on the woman's leg yes I I why would they do that well I think actually um sometimes moving no no I I I do think um for my time is em sometimes moving the person can cause more damage than leaving it until you have the

Emergency Services on the scene so they like to wait for emergency services and let because moving it you have a broken bone hit your fir your femoral artery and you could bleed out so they just say stay where you are don't make any more movements until dude and leave the car on top of them that's ridiculous it's on the person's leg so that would mean that they're not in any danger it might be painful but if you were to move them I was taught this when I was in EMT you if you move people you have to be very careful because you could cause a spine injury they could become paralyzed or you could cut a major artery you got to be very how long were you an EMT I was the first class of what was called emtf

FRS First Responders and I worked at Bravo ambulance in Brooklyn as on a volunteer one for about three or four years did you have like a tight outfit like a tight Polo what did you wear like skinny jeans did you have skinny jeans green pants and a white collared shirt and um yeah I never told you guys the first call I ever got I never told you that story were you like were you like a sexy paramedic or were you just like a paramedic I can be whatever you want me to be your whatever works for your fantasies he's blushing he's my first you were a sexy paramedic I was a little sexy as a paramed got him blushing here's my first call I swear to God it's the night before Thanksgiving Wednesday

night it's a big night in Brooklyn I don't know if in other places but the night before Thanksgiving everybody goes out and parties so big Wednesday happens first call comes in I was I was originally the person who picked up the I was the operator at the 911 but then my second job I was on the bus and so first call first shift is Big Wednesday guy gets we get a call that a guy got stabbed we go the guy is outside TJ Bentley's and I kid you not the guy was in charge of the ambulance says cut the jacket off I take my shears we have these really sharp scissors and boom we go right up the sleeve we cut his jacket he goes oh my member's only jacket we cut him open and his giant

hairy chest blood is pumping out like it's like a little uh water fountain and the the guy who was running the bus I remember yesterday puts his hand on both the says guy you got bigger problems than this member only jacket he says get the Mast pants the mass pants just so you know are used in war we get trained in them you never use them Mass pants are a blood pressure cuff you put over people's pants to take the blood from their legs put it into their chest so that they at least survive the guy says get the mask pants I said get the mask pants the mass pants are packed away you never use them I'm getting the mask pants out we're we're whing down Fourth Avenue uh to get this guy and his blood

pressure is dropping his heart rate's dropping blood all over the bus we're trying to control the bleeding he survived did you save him we saved him yeah but that was my first call first call nuts this was a volunteer gck like get paid for it nope no not everything's about money freeberg not everything's about money freeberg I'm not saying it is I'm just asking I'm joking with you just want to be a superhero yeah that's all I uh I texted I texted Jamie Jason's brother and I asked him if this was true and I asked for a photo hey Nick you wanna you want to put up the photo the second one please oh there I am there I am your heart stops this is the guy you want to come restart

Dave did your heart stop did your heart stop Dave CU I'm going to resuscitate it Nick show the other one this is this is the original outfit that when you became a par oh no this better not be x-rated oh god oh there I like the second one better yeah we know which one you like better days is that a nurse is that a thermometer he's got what what does he have in his hand a needle needle or a thermometer I think that's like a coke bottle I think that could be a thermometer we might need to check your temperature David it's like a Pepsi bottle what the hell we're going to take your temperature Dave I don't know if

you're going to like it what kind of temperature does that take for you in a coup well I know it's going to be really hot oh Jason you did a great job as we really appreciate your contributions wow great job all right back to the story about Cruz this terrible accident wow we got derailed yeah well thanks for the work you did jcal thanks for your service okay so I'm G to take your okay local media picked up you have that eagle tattoo on your arm too that was that was removable local media picked up on this uh reporting that Cruz was responsible for the incident director of news for the San Francisco Chronicle which is a lunatic

publication woman run over by Cru self-driving car on Market Street in Downtown San Francisco pulled from under rear axle circumstances under investigation the San Francisco standard posted on a woman suffered traumatic injuries after being trapped under a cruise Robo taxi in downtown San Francisco Monday night fire department spokesperson said few weeks ago as you know a video circulated on X formerly known as Twitter of 20 or so Cruise Vehicles causing a massive traffic jam at an intersection in Austin the robo taxi uh provider issue has become very divisive here in San Francisco there are now multiple companies working people in San Francisco will put

P to Brick the car yeah why would they do that CU they're lunatics and it represents technology that's the real story here the real story is the very deep disdain for technological progress and the Second Story I think that's so important is the total lack of assumption of risk generally in the US which limits progress in meaningful ways let me just pull up some data that I shared here so Nick if you pull up this first chart I'll give you guys some some numbers for every 100 million miles driven in the US there's about one and a half deaths car accident deaths there's about 3.2 trillion miles driven per year in the US so about 45,000 people die from auto accidents each year this is a

crazy number 2.3 million people have auto accident related injuries in the US each year and there's 6 million car crashes each year in the US that's one crash for every half million miles driven pretty you know incredible statistics so if you look at this chart it kind of shows the car fatalities over time now what's the leading cause of car fatalities we'll go to the next CH distracted driving number one I should have I should have done this as a quiz number one DUI H Jesus that is unbelievable that even today yeah number two speeding number three not using your seat belt so by the way all three of those are the same yeah all so 80% of

those 80% of deaths are DUI speeding and seat Bel nonuse now go to an autonomous driving those are all opt in so now go to an autonomous driving world you won't see DUIs those things are programmed to not speed obviously they're not going to run if you don't put your seat Bel on and then the fourth one is distracted driving the real question is what incremental accidents or what incremental errors do autonomous cars make that might you know kind of cause new deaths or new accidents but the net is that we have an incredible number of car accidents 6 million accidents a year 2 and A5 million injuries a year 45,000

deaths a year most of which can be prevented by things that are just basic human stupidity the first three are all opt in so what you're saying is Warren Buffett and Geico are probably responsible for lobbying and creating this mess in San Francisco do the insurance companies even need to exist state chamath conspiracy Corner well I actually think there's a very different driver for these things so I just want to make the case first off that if you if you zoom out and you don't take the anecdotal story of the woman trapped under the cruise car it's an awful story but that anecdote allows people to heighten Their Fear and heighten their emotion and create a response to

autonomous driving as if that is a cause of a problem but if you zoom out and you ask the question dude 50,000 people a year are dying because of human stupidity that we can just completely take off the streets it's such a no-brainer that this technology should progress agree and I'll give you guys another story in 1999 there was the clinical trials for gene therapy had begun and uh there was a guy named Ginger he was a young kid I think he was 18 or 19 years old and he passed away from the gene therapy and it turns out that there was actually doctor malpractice that was primarily responsible for his death after that

happened the FDA and The Regulators stepped in and they basically put a halt to all gene therapy clinical trials for about seven years the number of lives that were lost during that seven years that went on that we did not make progress on getting gene therapy programs to Market is significantly higher than the number of people that would have lost lives which by the way it turns out when you go back to this this particular death was driven by doctor malpractice not by the gene therapy technology necessarily itself and a lot of the stuff was understood and I think we've heard Peter teal and others speak a lot about how the US has lost our appetite for risk we say that

if anyone dies or or if any bad thing happens a new technology should not progress but when we look at the benefit of new technology relative to the cost of it many of these Technologies should progress at an accelerated Pace not at a decelerated pace and the stepping in to stop these things from moving forward because number one we're rooly afraid of new technology number two we you know we kind of want to there's a lot of regulatory capture and incumbency that wants to see these things not succeed I think we're really denying ourselves in many cases the opportunity to realize progress because we're so concerned about any loss nuclear fion is a really great example of this Three Mile Island

accident and Fukushima you know if you look at the total number of lives off and and there's incredible statistics which I should probably not pull off the top of my head I should probably make sure I get the right numbers but Chernobyl is another good example if you look at the total number of incremental cancers and the total number of lives that were lost from Chernobyl you look at Three Mile Island you look at Fukushima yeah6 you can you can make a statistical argument that even even with those extraordinary cataclysmic disasters the number of lives that could have been improved the number of lives that could

have been saved the progress that people have been could have been uh could have made the number of people that could have been pulled out of poverty if we made cheap abundant energy available at an accelerated Pace rather than at a decelerated pace it could have had a much more significant effect so I view this in the lens this autonomous driving backlash in the lens of what we see with a lot of new technologies which is we lose our our appetite for risk we lose our tolerance for any sort of incremental loss and we lose perspective on the fact that that loss is far far far outweighed relative to the gains

that you gain if you can get that technology into Market faster uh not slower and I think that's just such a a real kind of storyline that's not told very often about how technology and progress is limited particularly in the modern age because once you have enough stuff you're not willing to take as much risk meanwhile you see China building 450 nuclear fion stations and the US building none and I think think that that's part of the story of where the US is today mhm yeah I mean I know that was a big rant but for me I'm just like so sensitive to the stuff you know like all of this like anti-tech stuff and

anti-progress stuff because you then pick an anecdote and you focus on the anecdote and you miss the bigger picture well what's so funny about San Francisco is this it's the city that both is the first to approve the testing of it and then where there's a small fraction of citizens who try to go and sabotage it I guess the next issue is how close are we to having these at scale cruises currently in San Francisco Austin and Phoenix wh Mo very expensive cars by the way uh they're currently in San Francisco and Phoenix 247 they're going to launch an LA soon and Tesla's been working on this you know what's another example of this SpaceX some shrapnel got blown into the uninhabited

desert lands around Bach chica Texas you're talking about Starship yeah Starship the big one yeah yeah and they come in and they're like shut the whole thing down you can't have sharpnel flying around think about the risk tolerance equation here so if you delay SpaceX by six months to make sure that shrapnel doesn't fly through the desert that's six months longer till humans can perhaps inhabit the moon go to Mars do all these extraordinary things this is what I mean about the lack of tolerance for risk we have to assume that there is a cost in moving things forward there has to be a cost in progress you don't go fight a war and try and move the

front lines of a battlefield further into the enemy territory and assume you're going to have no loss and all of human progress needs to be thought about in a similar way we have to have some degree of loss and some tolerance for risk as we try and make progress with our species and Technology always is going to have setbacks it's always going to have mistakes but if the net benefit far outweighs those mistakes we have to be willing to accept it and gets everyone to kind of take a broader perspective on what we're doing that this isn't just about maintaining status quo and not getting hurt this is about the great benefits we get from moving things forward and we've lost that in

such a profound way over the last 50 years in Western culture another great example of this to add to your tiid is challenge trials and these have been banned for a long time and if you don't know what a challenge trial is you introduce something like let's say Co into a person who has had a coid vaccine and yeah there assuming some risk in doing this but if it was a young person as we saw it probably wouldn't be that much risk and there are people who would do it and there this whole concept of challenge trials could reduce in the long term a massive amount of debts but it's not allowed because of Ethics issues what are your thoughts on that freeberg challenge trials I mean it's

look I there's so many examples we could just keep going through this from energy markets and nuclear technology to biotechnology to space technology to I've lived it I mean like GMO technology and bioengineering in Food Systems there's a fear and a concern and like Rob Henderson said at our Summit I've always viewed those to be luxury beliefs that this idea that I don't want to have my precious things changed when the benefit really acrs mostly to the poorest people in the world the people exp why that is by the way because that's an important point that people don't realize when when you make things

more productive whether it's a acre of land to make more food or a unit of energy and the cost comes down per unit of energy those of us who already have a lot of stuff and have all of our basic needs met we have housing we have shelter we have food we have energy we can afford it we live in a great environment we live in a place that we can do whatever the heck we want anytime we want we don't care if the price goes up by 30% I'm happy to go down to Whole Foods and feel good to plop down an extra 50% to buy an organic banana someone who only makes $88,000 a year cares very deeply about that cost Delta they need to see the cost of food go

down the cost of energy go down the cost of medicine go down the Improvement that's driven by technology and has been for 10,000 years mostly ACC cruise to the poorest people in society first and that's the problem and so we all who are in charge those of us who are rich who are Elite who have power who have control who have influence who run the government we all get to raise our hand and say I don't want to take any more risk because one person died meanwhile a million people are starving to death over the next three months and you can make that same story and you can connect those dots in every area of technology that humans are have lost their risk tolerance for in the wealthy

industrialized West and we are largely I think not just it hurting ourselves because of the economic cost and all the other stuff that's going on that we're now seeing as very apparent but we're also limiting the intelligence and the energy to make technology and progress it that could benefit the whole world we're limiting its ability to diffuse and I think it's it's really profoundly sad and I I hope that we one day look back at this era as almost like audo Dark Ages and we wake the up somay and recognize that we need to take some degree of risk and have for making progress all right listen I got a little passionate about the whole anti-tech stuff hey we like it

we like it and and listen 35 people died building the Golden Gate Bridge right like people wanted to see that progress people took risk that's it no risk no reward to that point I think it took two years to create the Bay Bridge and 17 years to do the repair to it I mean that's how crazy things have gotten $2 billion to two billion dollars to build those suicide Nets on the side of the Golden Gate Bridge and some fraction of that to build the whole fraking Bridge even on a dollar adjusted basis it's ridiculous it was five it's interesting you say that 550 million to build the bridge in US Dollars and then yeah it was the same amount to build the

Nets so cast a question about the cruise thing so do you believe that Cru will have a good solution to self-driving I'm just like a little bit skeptical are are they owned by GM now yeah but didn't they raise money from SoftBank isn't there some like independent funding as well that happened I thought it was sold to GM I'm just like it was part of I think it was sold to GM and then they set it up as a sub and they like like alphabet did with wh alphabet's raised five billion in outside money into wh and I think that Cruz or GM tried to do the same thing where they've got SoftBank and a bunch of institutional investors in Cruz majority PR sure that's right but it was spun out cuz

the ability to bankroll it it's obvious that these are getting there the question is is I think it's more like 10 years before this is fully deployed also you have to build all the cars if Elon does get out this Robo taxi vehicle for 25k which he seems like is well on the way with the model 3 to getting to this was an early mockup from Walter isaacson's book which looks pretty sharp and it doesn't have it's like a two- seat car so these things zippering around San Francisco Etc at a reasonable speed speed 25 35 mph I think he's pretty close to having this I use the self-driving beta full self-driving FSD I use it all the time I

used to only use it on highways now I use it on side roads I disengage it when it's on roads that are not clearly marked you know have you guys taken Cru or AO Road I haven't taken either I got invited to the beta though for Cru you guys want check out personally I would not trust uh The Cruise ride I don't believe they were responsible for this accident as it turns out but I'm just skeptical that some of these initiatives are going to pan out I think Tesla's getting why are you skeptical yeah I think it's a hard problem to solve and I'm just dubious about GM's ability to develop Tech at this level of sophistication even Tesla will get there

I think Tesla's already there well if an autonomous Tesla drove up and picked you up would you do that would you take a ride in that I mean not today but I mean when they get there which I don't think it'll be 10 years I mean it seems like Tesla's just way ahead of everybody else Tim what do you think where do you think the tech is I think this is a an inference problem for Tesla and it's a learning problem for everybody else so I think in order to build level five autonomy you have to have good reasoning and I think in order to have good reasoning you just need to have enough training data where you literally see every potential branch and node in a

decision tree and so it's one thing to be able to scan a light know that it's green and then go forward but when you multiply that by every intersection every light in every city it's a massive massive learning problem so the thing that GM and Crews don't have in my opinion is a path to acquire enough data to be credible could they solve a limited set of streets in San Francisco yeah yes and so if you have the city sort of block off certain parts of the neighborhoods and say no more human driven vehicles in these sections only these three or four licensed providers can be inside of it I think that Cru and weo could work but if you're going to live in a world where there's autonomy

meaning like humans can drive wherever they want I think Tesla is the only one because I think they've Acquired and they are acquiring so much training data that for them they're fine-tuning reasoning and it's exactly what Jason just described Jason is a perfect example of a consumer now who has a adopted it call it 70% of his use cases and is incrementally kind of like getting towards 90% or 95% and I think that that's impressive I would agree with Jason I use FSD 100% on the highways and depending on where I'm going so like this weekend when I when I came to David your house Sax's house full FSD the whole way yeah two 101 it's bulletproof bulletproof and

then in the city yeah and navigating to get into into David's house it I thought it was it was Pitch Perfect and there was one or twice where I'm actually the person that's panicking and disengaging FSD like intersections right left turns and also just on the highway like I get a little skittish at times if it goes if it speeds up or whatever my point is Tesla is so close to it so I I do trust that they'll have a credible solution in the next four or five years and these other companies I think that they need to have a solution for training and I don't see it yeah the point is there's over a million cars recording because when you buy a Tesla you turn on

self-driving it's in every car and so every car is recording data all the time as opposed to GM GM doesn't take the time to put the $10,000 $20,000 package half a million new sensor collecting millions of miles a quarter a quarter being added to the network exactly what Tesla did years and years ago is even before self-driving was a thing they put all the cameras in the cars to collect the data and you're right GM doesn't do that if GM did that to their legacy gas cars and then funneled that into cruise I think they would have a decent shot but they are not doing that here's a map of weo um in and I brought this up because you know I think there's two different strategies going on here

Tesla's going for the whole mcgilla they want to be able to do dirt roads you've never been on weo and Cruz are working from constrained areas that they can perfect and Phoenix is the perfect area because that's a grid based system very wide highways and it was planned and so if you have a planned Community you know this not like a city in Italy or France where it's like the the roads have been there for 800 years when you have some modern city where it's a grid based system Austin falls into this as well for a large portion of Austin it's going to be fairly easy to do those and so that's what we'll see my prediction is we'll see this also it's very flat

obviously no Hills and also weather so you know the Northeast will be the last place when you go to Boston or you know you're in uh other places that don't have a grid based system and you have ice and snow this stuff is 10 plus years out but in a dry place with consistent weather like California Phoenix Etc it's it's it's it's now right it's now I think okay in uh Bill gurley's regulatory capture Corner we have an interesting story about jsx if you don't know jet Suite X that's what the jsx stands for this is an airline that offers hopon public public charter flights out of fbos uh tiny airports usually reserved for private jets and they give passengers

the private jet experience for the cost of roughly a first class ticket at major airlines maybe double the cost of a coach ticket 700 bucks one way from Westchester to Miami $1,400 round trip not a bad deal by comparison United on the same day or between 5 and 800 for first class from New York to Miami Jets swex has 47 airplanes with 12200 crew members let me cut in and give you my anecdote on Saturday I took a jsx flight from Vegas to Oakland what were you doing in Vegas I went to the opening night of the YouTube concert at the sphere opening night at the sphere at the was incredible yeah the sphere I looked at the photos in the videos I

wasn't super impressed is it impressive in person because it didn't come across in the videos yeah it's incredible you got to go see it I think it's the first how so it's the first like live experience that I think think you have kind of live analog elements like a band and this incredibly immersive digital experience because it's a 36ft tall Dome and the entirety of the interior of the Dome is a digital screen so there were these scenescapes that they created that were like Dynamic video on these walls that it's hard it I don't think the videos do it justice like when you're actually jce when you're in this room during this shot right here and I was kind of sitting Center I was also I went

down on the floor for looks like you're in the desert or something it's like you're there dude I mean it's it's inexplicable it's more real than VR it's like you're in this world and they even did these amazing integrated scenes where they had like helicopters flying overhead and then they had spotlights coming out of the ceiling while the helicopters were flying in the video above you they did like a hot air balloon flying above you and they dropped like a rope down so it was this total integration of like physical and virtual content and I think like you two to be honest as great as the concert was

is almost like the most boring thing you could probably do with that setup over time you could probably integrate a lot more things you could have giant sets and giant scenes and people you know doing stuff physically Star Wars movie Star Wars in with in real life you could have like um the the siege of Carthage and you could have ships on the ground and then you could see the battle scene behind you and you'd be like in the middle of it the whole thing was really incredible sound I heard about the sound hundreds of speakers so when I was down on the floor I went right by the stage on the floor the some of the sound is actually

distorted down there and it's not that good when you're in the seats that's set back where the sound is really designed hundreds of speakers like built into the wall I heard each seat has sound is amazing there's there's seat speakers there but really it comes from the the Dome and the Dome sound when you're sitting in the seats is really like immersive and incredible okay so you took jet swe X back and I took jet X by the way I will my prediction on the sphere I think there'll be like dozens of these things soon enough okay because this can become like a new form of live entertainment venu it's not just a stage where someone stands on it plays music it's a new model and more than musical

artists I think you'll see like new kinds of Art and new kinds of things happening on these in these things anyway it's also video on the outside so you can do advertisements or make it look like a pumpkin or make it look like a basketball I saw that and it'll get cheaper and cheaper over time the first one was what two two2 and a half billion dollars they'll make smaller versions of it it'll be a couple hundred million it's almost like IMAX theaters they'll roll them out all over so back to Jet s x 240 bucks you drive up just like an FBO like a private terminal drive up walk in no security no lines no checkin get on get off it's like flying a some checkin so they know your name and stuff

like you walk up and they they uh you give them the ticket and then they do a gateside check-in they take your bag and they put it off they take it under the plane you save an hour on either a half hour oh my god dude it's so hasslefree it's ridiculous and like when my mom comes to visit she takes it she loves it but obviously there's got to be some catch I don't really know these Rags but this I'll explain that now so they have 47 airplanes 12200 crew members American and Southwest and several major Aviation unions are accusing jsx of exploiting a regulatory loophole that they can hire pilots who are too old to fly for commercial airlines and who don't have

the requisite 15 hour 1500 hours of flying experience because they are a smaller Airline Jets speedex says its Captain's average over 8,000 flying hours and first officer average over 3,000 flying hours so they're blowing past the regulation so that's obviously a red herring according to jetw site x two huge US Airlines and their labor unions want companies like jet sedex small air carriers that actually care about providing you with much needed choice and high quality service to be legislated out of existence it and by the way jetsu deex has a couple of the other airlines I think United as an investor so the other airlines actually want this there obviously is a

difference in security the one difference is not how many hours the pilots have obviously it's going through TSA so the the ability to not go through TSA is such a key part of this experience and to not go through a big terminal JetBlue and United support jsx and I think they're exploring doing this themselves so regulatory capture at its best I guess I'll take the unpopular side of this I think it's easy to blame this regulatory capture Boogeyman here okay I think jetu X seems like an amazing service it has starlink a bunch of my friends have taken it they seem to enjoy it a lot but here is the the the clever Arbitrage that jet

Suite X is taking which is that they fly under what's called part 135 of the FAA and that is when you take a private plane and you Charter it the airlines fly under what's called part 121 and the rules are very different if you're 121 versus part 135 and the biggest rule is the TR of the pilots which is that there are minimum hour requirements to be a commercial airline pilot which is about, 1500 hours versus 250 hours for a part 135 Charter pilot so I think the question is is that it's one thing where you Charter a plane with two or three of your friends that's a part 135 license in a small plane but when you take a large plane with nobody else you don't

know I think there's a pretty credible argument that that's a commercial Airline and I do think that it's reasonable that if you're running a commercial airline through a loophole at some point if you get big enough that loophole is going to be obv obvious enough that people will ask it to be closed I think what you want to have is this loophole closed or you decide that part 135 where there are so many people the pilots should be at a certain Flight Training standard and to jetu X's uh defense they reported their Captain's average over 8,000 flying hours so that is a magnitude more 5x more than five times the rules and first office average over 3,000 so why not

just up that number of hours to 500 or a thousand yeah or just make it make everybody, 1500 or Jason to your point just like say go to the FAA and say look we're going to continue to fly part 135 but here are the exact we promise to never hire a pilot that is not under this 1500 hour threshold etc etc there's all kinds of ways to go around it but I do think it's important to acknowledge that they're basically running a United yes but they're pretending that it's a private plane and I think United yeah it's a mini United yeah somewhere between the two no because United runs those Regional legs as well in in in equivalent Siz planes so I do think it

should exist I just think that it should exist on a relatively Level Playing Field I don't want somebody else to use a loophole so I would not want them to use a loophole either part 135 exists I'm actually in agreement with you to take a private plane and Charter it not to run an airline all right everybody this has been another amazing episode of the Allin podcast thank you to from his sphere of influence David freeberg the Sultan of Science and the Rainman himself hot water burn baby uh David saaks and the dictator himself Jamal poly love you boys I am the world's greatest moderator and we'll see you next time byebye byebye let your winners ride Rainman

David and instead we open source it to the fans and they've just gone crazy with it love you queen of [Music] K besties that's my dog taking your driveway oh man myit we should all just get a room and just have one big huge orgy cuz they're all this useless it's like this like sexual mention that they just need to [Music] release we need to get merch [Music] our