if you want to be successful you've got to be paranoid think about the fraud verdict that was just handed down in the FTX case a lot of paranoia during the due diligence process would have gone a long way also there are just so many warning signs in the economy right now that people really need to be paranoid about what comes next right now 86% of Executives believe a recession is coming seven stocks alone account for 28% of the S&P 500 debt has reached just absolutely dizzying Heights and here to discuss all of this and more and what you should do about it is Patrick Bet [Music] David FTX Sam bankman freed just gets convicted on all seven counts absolute Madness uh obviously fraud at the deepest level as I look at what's happening it feels like yet another one of these pieces of instability on um an economic chest board right now that is all over the map with a whole lot of things going on I'm curious to get your take not only on FTX but how you think this ultimately fits into a landscape that feels very unsustainable with the amount of debt and printing uh that we have going on right now so one uh uh that's great news is accountability as long as accountability is being done that's a good that's good this guy stole 8 billion on people's money we're not talking $8 million or $80 million eight billion dollars and he was practically buying politicians is what he was doing left and right uh second biggest donor behind uh Geor George Soros George Soros gave I don't know what his number was but this guy was in a 29 million range is what he was he one time uh uh offered Trump how much do I have to give you to not run I don't know if you're aware of this or not I did hear that yeah and then Trump jokingly said a billion dollars he said I would give you money for you not to run think about what he wanted to do behind closers he literally looked at everybody as a pawn as a way to move them so the guy getting 100 years we're going to see obviously what happens when this thing ends but did you did you ever see the paper that his mother wrote years ago uh uh about personal responsibility do you remember that I didn't read it but I heard about it and that's one of those things super distressing did you read the book going infinite no I did not really really interesting it got bad reviews so I'm not sure sure why it got B going infinite I'm almost certain that's the name of the book if somebody can fact check me on that um but it was really fascinating to hear how this was somebody who was completely unemotional on the inside um who I'm going to guess just literally had no feelings or thoughts about taking the money and he was so going back so this idea of people having a Messianic complex people become so convinced that they know what's right for the world that oh whatever we need to do I'm going to be able to work this out I'm smart enough to figure this out it's worth whatever risk um and really trying to completely remake the world in his own image and do I think that it was fraud in the way that Bernie moff committed fraud no but did he just blatantly steal people's money in order to put people's money at risk in order to uh shape the world the way that he wanted it yes was just absolutely crazy hearing the detail like page after page of somebody who just not didn't even seem to know where all the money was going just used everything like his own piggy bank and was splashing so much money around and had the sense it was going to last forever really really pretty horrifying yeah but but two things that makes me think about one the people who are in that space who did some similar things are sitting around same saying I don't want this thing to bring more attention to me on what happened with me so this is going to scare a lot of other Bad actors that are worried if they're going to be found out company-wise there's some other companies that are also a little bit concerned about uh uh how they're going to be doing the financing but I want to read this to you his his mother spf's mother was a Stanford law professor once wrote an article Beyond blame and she said we have to move past this whole concept of personal responsibility okay her word we have to get past this concept of personal respon the limits of personal responsibility the fact that we have gotten so little in return for our blame mongering at least opens up the possibility that people would be receptive to a new approach the next time something goes terribly wrong like your son going to jail for 100 years and stealing 8 billion suppose that instead of immediately asking who is to blame we were to ask how can we fix this problem yes Mom how did you raise a son like this that stole $8 billion from people so to me this is multi-dimensional I don't know his mother I've never broke bread I don't know who she is if Mom is a Stanford law that means this is a smart mom and if he is able to convince this many people to give him this much money you know and convinces guys like I don't know if it's shamat or the or one of these guys that he raised all this money and they said hey we recommend you having a board and he says go f yourself I don't need a board to tell me what I'm doing who the hell in the first place trusted giving this guy this much money without a board who so so for the people that are upset I cannot believe I lost this much money for my client next time you given somebody to manage money for you ask them any reason why we're giving this guy at this age this much money and you don't have a single board seat let me get to straight you guys don't have a single board seat yes we don't have a single board who negotiated this deal who the hell is this guy has he done four is he the modern day Steve Jobs with three other exits in the past that you're going to say yeah this guy we can depend on is he Elon Musk no he's just a regular guy okay so the people who did that you have to kind of give a little bit of blame to them for not you know get in greedent by the way this is a lot of smart people that were involved we're not talking about regular people uh but but uh the fact that this has taking place where this guy went from being the modern day what did the Kramer called them he called him the Moder day JP Morgan Chase do you remember this Kramer called him the modernday JP Morgan Chase if you can quote that it may be somebody else but I think it was Kramer and he was screaming off the top of his lungs and all these people that got FTX money um that uh you know they're going to have to come back and maybe that's going to show up again but I I don't really put a lot of blame on those guys they're just getting sponsorship money you either pick the money or you don't pick the money you're picking the CEO but uh it's pretty wild to see what's going on here but the best news is a certain level of account accountability for this to be taking place no doubt yeah going back to the idea that they didn't uh even demand a board seat I mean this is really ultimately what the um the Euphoria look like now I had never been through a market cycle of euphoria I had no idea what the signs were I mean now obviously I'm familiar with the when your Sho shine guy starts giving you stock tips that's when it's time to sell um and it really did have that sense of like nobody wanted to miss out on the you know the one grand slam that was going to come out of this and that reading going infinite was utterly fascinating about like what he was really like how awkward he was and how people started reading that as like genius and that of course he really was smart it's not like he wasn't bright but he was I mean yeah I don't know how much of this ties to the idea of his mom and nobody's taking blame I don't know there's something very undisciplined like if if I were just going to take it down to uh do I think he's nefarious or do I just think he believed he could do no wrong believed he was the smartest guy in the room which ended up being the punchline to Enron I think the documentary is called the smartest guys in the room and it's like you this is so my thesis one thing I'm really banging a drum on now is just getting people to distrust themselves like I I set my company up where anybody can tell me when they think I'm doing something wrong I fortunately am not smart enough to run this company where I'm going to make every decision and be right every time and so I constantly need people being a checks and balance system letting me know when they think I'm doing something stupid so that I'm not blinded and it feels like when you have this messy on a complex put together with somebody who really believes that they're the smartest person in the room and who's going to tell them otherwise like you guys don't know what I do and look at all this success that I've had and I'm a singular mind and I'm going to be able to do this and if you have those two things together that really is how you go off the terrifying deep end three things uh one uh is uh wework I don't know if you're following weor with what they're going through and 2017 they were valued at $47 billion you know how much soft Bank gave them in 2017 you know what they raised 18 billion 1.9 billion they raised they missed a 90 5 million interest payment they're about to shut down we work okay um Andy Fastow who was a CFO vron okay one day I'm in a uh uh Four Seasons in Dallas I'm doing a business planning session and once a quarter I would go away I'm at the hotel 20 miles away from my house but I would have a room full of stickers stuff on the board and I'm just writing what we're going to be doing so I go down I'm swimming then I go to the sauna I'm sitting there how you doing how you doing good what are you do I'm this oh no wait yeah how long you been in the financial industry 20 28 years who are you with Morgan sany d right you know I'm looking at a couple speakers to bring to my event who would you recommend oh who I'm going to tell you you're going to think I'm crazy who's that Andy fastel which Andy fow the CFO of Enron the CFO of Enron yes do you buy any chance to have his number he says if I give you his number please don't tell them I give you his number I said let me call this guy I'll tell him I got the number from uh uh somewhere but I won't give the name I call Andy Andy is paranoid he doesn't know who I am yeah 3 years later I bring Andy as a keynote speaker at Vault conference last year you know how I opened this up I said the reason why I brought Andy in is to help you guys not go to jail Andy gets up he opens it up this way he says in this year the number one CPA magazine of the year I was the CFO of the year he says then the next thing I want to show you this is my jail card wow my jail ID card one year I'm the CFO of the Year running in around with 100,000 employees next year you know I'm um I'm in jail and they they found a way to kind of scare his wife as well and they kind of separated him and he had to go do six eight years whatever it was anyways the moral of the story is this study very closely who you're in business with uh quby raised billions of dollars and went out of business in no time they were paying actors $100,000 a minute to do 12 minute movies do you remember those days with Kevin and all that stuff and katberg and all these guys were involved in it but if if you see something coming in that even the brightest of the brightest of the brightest minds are getting involved in ask some of the questions do we have a board seat who's in the ear of the CEO who's talking to the CEO what are his values and principles does his mother believe in personal responsibility what are we dealing with here so ask more questions before you jump in with excitement because other people are getting involved well so here's another fascinating thing that um I I think we'll have more things to say on this topic later but the idea that what you have are a set of ideas because they were effective altruists and I didn't know anything about it until I read the book but reading the book it was like okay he was an effective altruist he hired a bunch of effective altruists some of the people that helped them raise money were effective altruists and so there was this mindset and I won't be able to do effective altruism Justice enough but it's basically what is the um I think they take a utilitarian approach so what's the best good that can be done with this so what's the most good you can do with your life what's the most good you can do with the money and so in trying so interesting because this ties into your idea of selfish versus selfless and so they really believe that they were the most selfless people around and that they were just trying to run everything through an equation of like what's the the greatest number of good that this can go off and do and in some weird way it breaks and so even though it really does sound awesome like you're really saying I'm not going to live a lavish life I'm going to give all this money away in all these different ways but and now I'm just really hypothesizing here this wasn't in the book but as I was reading the book I I kept getting this feeling that I think part of what ended up happening is the algor them running in the back of your mind is as long as these dollars go do the most good it doesn't matter sort of where they end up and so he had largely a political agenda and was just like oh these dollars will be best spent there not thinking like well we only have so many dollars that we can spend and there are or should be Capital restrictions you can't mix funds right that all got way farther back got pushed way farther back into the recesses of his mind versus what's the highest good in his mind that this money could be put towards now again I'm super speculating he didn't say any of that I don't know that but that's how it felt reading the book and these are the results these are the results that we experience now for me a basic red flag you know earlier we were talking you and I if I ask you for $10 million I say I'm going to take $5 million off the table you don't get any board seats and I'm going to pay myself $500,000 you all the red flag red flag red flag red red flag versus no here's where it's going to go this is what we're going to be doing how do you not have when you're given that kind of money how do you not have a board seat and accountability to hold a young entrepreneur Co accountable how I can answer that question so you are in a position where you have a lot of capital because this is a time where capital is just flying everywhere so you have a ton of capital that you have to deploy you start hearing of this wonderkind who it just has this crazy investing strategy where he's arbitraging in South Korea and it all sounds absolutely brilliant and uh he is the next big thing he's an effective altruist he's not even doing it to get wealthy he'll show up in these meetings in like cargo shorts and no shoes not having yeah and so all of a sudden it's like okay is he crazy or is he a crazy genius and so the narrative starts swinging to he's a crazy genius and so yes he shows up and yes he's going to play video games while he's on the call with you but that's because his brain works so fast that he has the basically he's able to fractal his mind and do the video game over here and so as that becomes the narrative people are buying the story and so people will buy the best story to quote um Morgan howel again Morgan says it's never the right data point it's not even the right answer it's the best story that's going to win and so the story they were telling about this guy because I remember I was really on the periphery of of hearing about him and it was like he was the good guy he was the guy that had all the right incentives all the right reasons was just doing good with his money wasn't trying to be rich didn't live a lavish life which wasn't entirely true um but the story was there and when the story is there everyone's euphoric number only go up you've got a ton of capital you have to deploy you find a once in a generation genius he's being validated on stages with Bill Clinton and whoever and all of a sudden it's like okay well the cost of being able to get in on this is that we're not going to get a board here's a crazy thing though the question is is he going to get pardon the question is is he going to be able to get released the question is how many people did he give money to that are afraid if he leaks information of what happened that maybe campaign funding could come out maybe he has more control of over other people is he kind of a modern day Epstein not the kid stuff but more how he held people hostage with money information on the back end uh the next thing is going to be who's going to turn on him that took money from him and how they're going to react um because if things start getting weird it tells you he's got a lot of intel on some very powerful politicians in America yeah yeah so we only have to wait a few days for at least sentencing and then we'll see beyond that all right as I think about all this it it goes back to what I started with we're we're on sort of Shifting Sands here we've got a very complex macro uh environment and what what does all that mean do you still think that we have uh a recession coming and if so what do we do about it good question so let's go through this you know how uh a doctor uh has seen 5,000 patients over the last 20 years okay and he's got a very Niche thing that he does it could be skin it could be you know uh uh kids it's but it's very specific and a lady comes in and she says this part of my body hurts no problem but 420 people have come and I've said this part of their body hurts in his mind out of the 420 it breaks down to four different things it's either this this this this so now as a doctor he's going to use a process of elimination let me test this that tells me it's not this boom boom boom great it's not this let's take blood and urine it's not this let's take an MRI it's not this let me take a sample it's this great now you know okay what's the worst thing a doctor can tell you when you go to him the doctor says what I don't know I don't know that's the worst thing when he says I don't know what's wrong with you I've never seen this before that's like the last thing you want to hear tell me I have this or I have this or I have this but do not tell me I've never seen this before for so today's economy when was the last time we had this case study let's look at case studies okay what's different between today and 2008 market crash 2008 market crash was about no income no assets Nina loans Banks were giving them money left and right hey uh stated income you're trying to qualify for a $720,000 loan how much money did you make last year Tom I'm a school teacher $48,000 you're not going to get qualified for this time I going to ask this question one more time how much money did you last year I just told you $48,000 do you want to get qualified for this or not yeah okay one more time how much money did you make last year 62 that's what it was no income no assets in 2008 right 2007 and then I remember the month when I knew it's over because the one guy in La who was making 400 Grand a month uh had an office in Tanga Valley in Tanga or Koga 30,000 ft of Office Space November of 2007 he shuts it down oo and this is right after you're seeing WAMU Countrywide you know all these other companies that are doing what they're doing very problematic when that took place so then you saw cities like Riverside Community Riverside County 65% houses foreclosure oh then you had loone modification then you have people that were buying five six homes paying the negative amortization payment which means if you got a loan this was a program that came here from Australia with the story you always hear about that this program was in Australia we brought it in America it was meant to only be for people who are affluent okay you got a $20 million loan on a house you got $40 million in a bank account I'll give you 20 million no problem you got four payments to make you got your 15year loan which is going to be the biggest loan you got your 30-year fix which is going to be reasonable but it's not a 15-year loan then you have your interest only that you're literally only paying interest and the loan stays the same amount or you got your negative amortization payment which means the loan gets bigger every month that you pay it because it's negative amortization every month the loan gets bigger okay so for example for the average person in America would have been something like this it would have been neam payment was 1,200 bucks a month interest only was 1,800 bucks a month 30-year fix was $3,100 a month and 15E was $4,500 a month okay so people are like dude buy another house and another house and another so I got five houses that I'm paying 1,200 bucks on I can afford to do that except that was only for two or three or five years and then all of a sudden your 1,200 payment goes to $4,200 Time 5 houses how do you pay $20,000 a month you can't do it boom foreclosure foreclosure foreclosure so that's not the case study of today the case study of today is somehow some way the government thought it's a good idea to lower interest rates to 1% and we had 3% loans that were going on and then we talk about 128 month expansion by the way if there's no coid that would have been 150 month expansion that we would have had that's not good to have 150 month expansion because during that cycle that we went out Tom money was so cheap that people were just picking up money and buying stuff left and right it was so cheap go get a house go get a car rates were low you these big companies are getting $50 million lines $100 million lines $200 million lines go get as much money as you can then Co hits when Co hits philosophically it was a [ __ ] show go work from home 18 months that's what you got to do essential non-essential and then when that took place companies like Twitter and many others said at Twitter under Jack dorsy you can work from home for the rest of your life what a Noble company that's what we got to do and then so we go through that cycle and then people started abusing employers and they had two jobs of they weren't telling anybody but they're making 82 here and 88 here so they're making $170,000 thinking they can do this fraud that they're doing for the rest of their lives and then they're living a $170,000 year lifestyle not realizing that's not going to be around forever and then the money that they put into the system all of a sudden people have cash in a bank like never before so we had $2.2 trillion of cash Americans every quarter that thing went from 2.2 trillion to 1.7 trillion to 1.4 trillion to 1.1 trillion and our savings as a nation kept going lower and lower and lower and lower so then we have um more money being printed into the economy and then we have the election then now Co is gone now we got to get people to come back to work they don't want to come back to work they want to work from home then companies like David Solomon Goldman Sachs they start saying no you got to be there for accountability on Monday morning and all this other stuff if you don't you're not getting your bonus people started kind of getting creative that's unfair that's not cool I'm going to go get another job many did then some companies came out and said no we're just not doing that and then you know that is taking place and then you have a bit of War you have craziness going on with another War you have all of these things taking place and then suddenly Jerome Powell sees inflation's going to 8% wait a minute what's going on here we got to lower it to 2% how do you lower it to 2% let's start increasing interest rates we raise this is crazy we raised 4.88% in the shortest amount of time ever in the history of America there's a chart on statistic you got to see this it's a great Visual and it shows historically when we've had to increase rates it's over a three-year span or it's over a six-year span or a three and A2 year span no no this is over a 12 month 15mon span 4.88% boom like this hoping inflation goes down okay inflation moves a little bit sales of homes to the lowest than 20 years mortgage applications lowest than 27 years people who were doing loans I don't know if you have friends who were doing loans or mortgages or real estate these are guys that were making a half a million dollars 3 years ago per month they're not making nothing right now guys who are making $100,000 a month are having a hard time making $8,000 a month right now loans there is no loan application because even new homes are not being sold to do the loans of new homes so home sales are down because typically when refi comes down people will sell homes no one's selling homes today why are they not selling homes today because they're still sitting on some cash and they don't want to give up that 3% loan they got a year and a half ago and then you look at the data okay let's just say I do sell this house I got to go buy another house but I got to get that house at 8% I'm not willing to do it why would I do it so I'm not going to there is no motive to sell the house so now what's the ticking Time Bomb a few things one Jerome Powell is trying to increase rates hope fin hoping unemployment increases because that's what we need they need the unemployment to increase it's not moving still 3.7 3.5 3.8 3.9 it's not moving it's right there okay so either we need unemployment to go up or we need people to run out of money if people run out of money and they're stressed out guess what they they do they're going to sell the house so today numbers came out saying it's 55% more cheaper to rent than buy this is the highest we've had ever wow it's 55% cheaper to rent than to buy today this is not a buying season this is a renting season okay this a Wall Street Journal many of these other articles we'll talk about okay meanwhile the economy is growing the econom is going up Dow Jones oh it's killing it based on seven companies magnificent 7even and you know who these Magnificent Seven companies are Nvidia you got these Facebooks the Amazon the apples these seven companies that are preventing the company from country uh the market from having a crash then while all this stuff is taking place um Powell now is dealing with a war he's afraid he wants to raise the rates a quarter but due to the war that took place in Israel he doesn't and then data shows which is by far the most interesting data to answer your question here is how much after these five situations where we raised the rates multiple times in a span this being the shortest uh in the most condensed time frame how long does it typically save is there a formula of when recession comes if at all here's what they realize recession usually comes on average 11 months after the last month they raised the rates so what does this mean if Powell's no longer going to raise the rates and the last time they raised the rates was September let's just say that means recession is going to come when not October so you got October November December January February March April May June July August August of next year three months before election that's if it follows the trends of the last five times when they raised interest rates so how did I start off the story I talked about the doctor that has met 4,000 different patients and the 420 or you're kind of going through this the problem of everything I just told you could be completely wrong because there's a fifth when the doctor says I've never seen this before so we've never seen current climate current climate before for us to be able to put it and say well according to this and according to that we've never had this situation before yeah that's the thing that makes me really tense but there are fundamentals that when I look at I think oo like there it isn't possible to sustain this so the thing that I just just keep coming back to is debt and interest and when you look at the charts that show the interest payments and how they're going to go up and up and up and even people that locked in you know say three-year fixed rates at really low rates in the corporate Market that all goes away in a few years and so you start looking at just the absolute Behemoth numbers that are going to be due to service that money and it becomes completely untenable and the bad news is it becomes untenable both at the individual level where we're more in debt than I forget ever or close to it but individuals are in psychotic amounts of debt corporations are in ridiculous amounts of debt and the nation is in a ridiculous amount of debt all while we've had two major printing events since 2008 and so now you really have a very unstable market so there's a great quotes called Minsky Financial institutional hypothesis instability hypothesis excuse me uh and he said when an economy is stable people get optimistic when people are optimistic they go into debt when they go into debt the economy becomes unstable and now that's even without the crazy rising in interest rates so we have like this for me it seems self-evident that there is going like that that gravity insists that things come back down but they haven't yet and so just when I want to get bullish and be like hey obviously this is all going to come crashing down it just keeps not and not and not um my intuition is that a recession is inevitable but the market can remain crazy longer than you can remain solvent whatever the quote is um why hasn't it happened yet and how do you think about because obviously you have the you have similar concerns that I have only the paranoids survive but how do we turn paranoia into an action plan yeah so everything is right now about mapping out different possibilities so for example if we're right now in a conference room and we got bored to write on we would write on you and I would write on and we would say okay uh World War III takes place what do you think are the chances of this taking place Ray doio says 50% yes okay does a um Jamie Diamond says this is the most danger Dangerous times we've had in America in decades okay cool so if World War III happens what happens to the economy who's going to be the parties involved are we going to be involved purely through proxy or is there going to be attack here then you write down the possibilities okay if this happens what are you going to do if this happens what are you going to do then next what happens if unemployment all of a sudden goes to 7% 6% what happens if inflation goes down what happens if Powell starts lowering rates back down to 5 4% holy [ __ ] that's that's going to be crazy what Happ so you got to write all of these different scenarios down but here's a couple things that we have to be thinking about and you said which was fascinating one so credit card debt highest it's ever been you know what's the craziest thing about uh uh credit card de being being the highest it's ever been tell the average interest rate on credit card is the highest it's ever been Jesus forget about the debt so people are worried about the debt so imagine the interest rates in the last 5 years has gone like this to 23% or the average is 23% on credit card you know what 23% means that means the debt doubles about 2 and a half years that's like loone shark number that's loone shark three years your debt is doubling right but that's what we got right now credit cards okay so our debt is record-breaking the forgiveness for your uh loan school loan is gone so now you have to start paying for it that's $3 $400 a month that people are expecting I think October November starting then let's set that part aside go to the corporations you were talking about that are borrowing money this year they're in interest payment on corporation that borrowed money is going to end up being around $530 billion just interest oh my God next year it's going to 730 next year it's going to 1.1 trillion in the next five years it's going between 1.3 to$ 1.5 trillion just on the corporate debt that we're talking about by the way next part car payment a credit no one's affected good credit they're making the credit payments on time mortgages we're not saying anything crazy with people would credit not making payments we're still good car payments and subprime they're seeing a spike in defaults where people are not making car payments the first sign you're seeing on what's taking place no problem let's go to the next one that's the scariest one us has $33 trillion of debt worst that's ever been the highest that's ever been no problem what does that really mean nobody can really figure it out here's what it means of the money that we have about eight trillion of it the rates are gonna re-calibrate and we're going to have to have new rates that we going every single time the rates go up one point just one point for the US government our interest payments Tom increases by $320 billion Jesus so imagine we raise rates by three points just interest it's a trillion doll more per year if it's 6% $2 trillion more per year that's that then last thing that I'll just kind of get you to be thinking about um so anytime you want to know if the economy is back to normal go to Vegas Vegas is humming like okay we're good and always whenever you go to Vegas talk to cab drivers and talk to the drivers who are doing Uber always ask how's conventions doing how are you seeing with traffic are you noticing things canceling no this has been crazy for us the last 3 months everything's good but if they start seeing a downturn they're typically an indicator of what's to come Transportation industry we consult for a lot of Transportation companies at BV Consulting one of my friends I'm about to go meet with them right after this they're their con their construction company that's very well we have these three clients that we have who are doing Transportation two of them are doing a 100 million 80 million a year numbers are down 40 50% one of them is doing a billion a year their revenue is down 70% oh so let's actually talk about transport why would Transportation be down 70% aren't Walmart Amazon companies ordering stuff to ship it from here to there why would that be lowering what do they know that we don't know again these are people who have data to Insider stuff that we can sit there and say these are great indicators when you're studying these things on what's going on does this mean recession is going to come here like I told you earlier when we were talking my bigger fear is a reverse market crash which Venezuela just went through which all of a sudden the rates get lowered and DOW an S&P goes and DOW goes from 33 40 45 50 55 just goes Voom is that just the dollar losing its purchasing power yes exactly that's what happens the more we're printing like for example a Michael Jordan um card uh years ago a bgs 9 a half sold for $78,000 I like oh my God that's crazy but then all of a sudden all of these boxes kept entering the marketplace of 1986 Fleer so guys started buying these things and they were sending more to get graded at Becket and PSA the more they got cards graded that $78,000 card bgs 9 and half became a $60,000 card $50,000 card $40,000 card $330,000 card you can probably buy bgs 9 and a half today for $20,000 $25,000 okay so the inventory increases the more we print money the more you print dollars and it's more accessible the less it's value the less it's worth so these are some things that's going on uh today uh so you know like I you you sit there you're like okay so does this mean guys are not going to make a lot of money no no you're going to see the first trillionaire in the next 24 months because none of this is going to affect the guys at the top none of it this printing money every time they print money the guys at the top make more money every if there's anybody that should be against printing money it's low and middle- income families if there's anybody that should be against printing money is them if there's anybody that's for printing money guess who it is the guys at the top why because the poor in Middle America can't keep money they spend it and when they spend it what do they buy a product owned by somebody in the S&P 500 or other people who have businesses money flows up they can keep printing money all they want so when low and middle- income families are like look at these guys all they care about is themselves let that bill pass for $2.7 trillion you simply look at them and you say you have no clue how money works you have no idea how money works guess what let's print $1 trillion Rich are okay with it you ain't going to get the rich complaining about printing $10 trillion or $5 trillion black Rock's going to be like all right cool we're at8 to1 trillion of money in our ETFs and we're buying up a bunch of different companies we're buying up all these properties today right now it's going to be nothing but in the next few years you have to go through us and we dictate the market and we're going to own it all and what are you going to do about it you know this these are these are a lot of different moving parts that is going on to me and again for me um the the idea of Middle America not being able to make the money they need to make to be able to afford a house send their kids to school live in a nice place enjoy some of their dreams maybe not the biggest ones but some of their dreams are going to become a reality Middle America is getting smaller and smaller and smaller every single time we print money you can reboot your life your health even your career anything you want all you need is discipline I can teach you the tactics that I learned while growing a billion doll business that will allow you to see your goals through whether you want better health stronger relationships a more successful career any of that is possible with the mindset and business programs in Impact Theory University join the thousands of students who have already accomplished amazing things tap now for a free trial and get started today for people that don't understand the mechanisms of printing money it goes like this you are you have to have a mechanism by which you put this new money that you created out of thin air by Fiat literally just saying it now exists uh you have to put it into the system the way it's put into the system is by buying assets because typically low and middle income people don't buy assets they buy products like you were saying then they aren't beneficiary of that unless there are stim stimulation checks now those they will get sent directly to them so there are ways to put it in their pocket but what you're effectively doing is socializing losses so you are spreading the loss out across everybody because while I get it that um because I own assets I'm going to be disproportionately either protected or actually gain the gain isn't real and so it's really I'm looking at the price is going up and it makes me feel like oh I really did something but in the end I didn't in the end it just my dollar buys less and so it takes more dollars to buy the same thing because nothing fundamentally happened the business that I own a piece of did not become more productive and therefore can actually generate more by adding more value to the world so once you understand that like I actually as a wealthy person do complain when people print money because I'm like hey there is a point at which you break everything because the money is just going to hyperinflate and it isn't only going to be the stock market that goes up it's going to be the cost of bread and gas and taking your family to a movie and all of that and so um look I I'm conflicted in fact Patrick Bet David you're going to educate me here I'm conflicted about money printing because the only reason I got into doing Financial content and quite frankly learning about financial content or Finance in general uh was because of coid when coid happened this was me not being very far out from having worked at Quest and I had a thousand employees in the inner cities and I was like they're all going to get obliterated I'll be fine I'll still be rich on the other side of this but they're going to get wiped out because I didn't know money printing I didn't know that they were going to socialize losses and in doing that that actually kept us from going into something that probably should have been worse than the Great Depression and they money printed their way out of it and we ended up being okay because it was spread across a lot of people now I hate that I was t taxed without um without it being acknowledged as a tax and I feel that I've paid an inordinate amount of money but if that's what stops everybody from going into a horrendous depression I don't know I don't know that it was a bad idea but I know that it because I am such a student of Ray doio I know that governments once they start money printing they can't stop and every time in human history that it's been used as a tool it's used Until It Breaks Until It Breaks every time without exception and that typically as it's racing towards breaking I think it's what eight out of the last 14 times it's ended up in a hot War so usually as the debt the big debt cycle go watch R Delio's video as the big debt cycle comes to an end and and uh money's inflating away to nothing debt is completely out of control nobody can make their payments everybody's defaulting you have to have a complete reset of the wealth which is I think why everybody calls this the great reset or the big reset or whatever because we are we are actually stopping we are forestalling catastrophe right now by printing but we are only forestalling it and nobody I've had a lot of people on the show nobody can tell me how you pull out of this death spiral other than austerity and no one's going to do [ __ ] austerity yeah well I mean Ray when he uh uh did that one video if you've never seen that one video it's like 32 minutes where he explains the history of money and finances and what's going on if you by way it's got like 20 or 30 million views very few 32 minute uh Finance videos are going to have that manys everybody must watch it but yeah so how can you fix this thing well the the question my question would be is it a how do you fix this thing in a year no one's going to know how to fix it because it's not going to happen how do you address this and make progress towards you know getting better that over a 20year span okay now we're talking 40e span even better then you have to forecast and see what Solutions are going to be needed the next 20 30 40 years the problem with America today is the following here's one of the problems with America which by the way is a beautiful thing but it's also pral whoever that gets elected we have cyclical Cycles okay you got Carter gets elected then it's Reagan senior then you have Clinton then you have have Bush then you have Obama then you have Trump then you have Biden so Republican Democrat Republican Democrat Republican Democrat so every time you do this every eight years the system is like changing so Cycles are changing whatever you're doing is changing so you can't really consistently build on a philosophy over a 20-year period because in America you you can't put a 20-year plan in place there is no such thing as a 20-year plan in America cuz whoever's the next guy that's going to come take your job is going to say no we're not building that wall no we're not going to do that no we're going to cut those benefits no we're going to add these benefits no we are going to spend more money no we are going to do that no we are going to leave this war no we are going to get into this war the these things the the complexity of what we're asking about is challenging because no one leader is going to run for 20 years we just don't have that okay would you want it in a in a way when it comes down to the economy uh uh yes I would want it selfishly for me and you because we're alive today is it good for America long term absolutely not okay absolutely not because if that one person's a shitty person that gets into office for 20 years this thing's gone it's destroyed okay so at least this allows us to not be able to go super extreme because you have to get it through Congress and Senate and it's already complicated enough to do that but to fix this thing you're never going to have both sides agree philosophically e on what they're going to be doing over a 20e span all right let's go to the next side that we're talking about while all this stuff is going on you have uh um the the war right now with China and India that is also taking place with iPhones are now being made in India you can now get iPhones where on the back of it it says Made in India first time not made in China says Made in India really guess who blocked Tik Tock in their country India guess who's blocked 100 apps of China India India is not afraid of China now why does China not like India why do they always be on closed doors talk [ __ ] yet at the same time they're part of bricks you got Brazil you got Russia you got India you know you got China and I think it's South Africa that's part of the bricks right okay so they're part of the same thing but there's also a way of you know competing the reason why I like India a lot and I think India is going to play very important role here is because India has seen how China negotiated with us and they realized we're not doing that but India's also seen the mistakes China made with the one child Rule and overexpansion and what's going on with a lot of these properties that they build out in cities that looks like just like Paris I don't know if you've seen the city they build in China it's a city everything Paris has it has it looks identical to Paris if you Google this same kind of architecture if I tell you if I show you the picture you would think it's Paris they spend billions of their own money to build a city replicating exactly Paris that's what China did okay wow so we're talking about you know the whole everything everything they have they have a sh same exact model that they have over there exactly when you see the pictures like when we're done I can't wait for you to see these pictures to see what that looks like so China overexpanded very quickly India is watching China they had their one child one child policy the average age of a Chinese per right now is 38.4 years old India is 2728 okay India's uh IIT Institute is producing incredible Engineers many companies here will hire Indian engineers and they're rock stars better than m in many cases so I think India is very important for the next 20 30 40 years very important as long as India is there China's going to hate it they they're not going to like it the fact that Tim cook right now has got a very hard job I think Tim Cook in the span of four weeks lost $350 billion of valuation for apple in four weeks $350 billion okay one because iPhone 15 didn't do what they expected it to do two because China is now giving them a hard time because China is their number one market of iPhones they sell now China is sitting there saying wait a minute we sell more iPhones in this country than anywhere else yet you're giving our business to India who the hell do you think you are right then on the back end the real war that's taking place is the semiconductor chips and there's different levels to the semiconductor chips that's being built and China's specialized in the cheapest kind to make the easiest kind to make where some countries have specialized on a tough kinds to make when it comes on to semiconductor chips this is why China can't stand Taiwan being there this is why China wants Taiwan because Taiwan specializes in building the extremely technical semiconductor chips that the rest of the world uses and then there's complete other aspects to this that you can get even deeper on so taiwan's going to play play a very important role you know we can't have a Russia Ukraine or a you know Israel Palestine Gaza Armenia aeran turkey we can't have that taking place with Taiwan Taiwan needs to stay separate that needs to stay protected how we do that I don't know how we're going to do that we're getting involved in one too many wars but if if Taiwan stays free and China relies on them because China destroyed the world during Co absolutely destroyed we realize 80% of medications being built there 80% the technology that we need is being built there they controlled everything car pricing use prices went up 50% like what are you talking about you mean to tell me I bought this car for $90,000 it's used you're willing to pay me $130,000 yes are you serious yes why we don't have chips to make cars are you kidding me no Rolexes they were making Rolexes for 18 months they didn't have equipment to make Rolexes you go to a Rolex shop that had one one watch like what do you have we only have one watch can I order Rolex no we're 12 months you're not going to get are you serious yes nothing this is what was going on at Rolex store so again the stuff that gets me optimistic is India is Taiwan is we're committed to the semiconductor business here uh the things that concern me is China is erdogan being wanting to be involved in the Israeli War because most people don't realize the most powerful military in the Middle East is not Israel Israel is powerful but Israel has 300,000 soldiers of which I think 150 is reserved turkey has nearly 400 active 350,000 active Soldiers the number one military in the Middle East if Turkey gets involved you know so we have all these dead things that we're looking at obviously the military-industrial complex which aenar talked about where be careful with these companies like Ron and Boeing and General Dynamics and these guys that are making a lot of money when there's Wars we have to be careful with that taking place we have to be very careful with that when that's taking place but uh yeah it's very complicated very complex Ray doio says a depression could be possibly around the corner a lot of these guys are fearing what is taking place today Michael bur shorted the S&P 500 $1.6 billion of his client's money and now he did it in a way where you know you're kind of protected but still he's not optimistic about the S&P 500 what it's going to be doing uh one too many moving parts for us to sit there what will happen the rich are still going to get rich the innovators are still going to find a way to you know win the people who learn how to use AI on their side they're going to advance and Excel even more the acceleration and the disparity between the rich and the poor is going to get wider and wider and wider why because most people are going to spend majority of their lives on Instagram on YouTube on Tik Tok they're not going to learn a new skill set they're not studying AI right now they're not studying technology right now they're not learning new skill sets right now Harvard did an article Harvard Business Review did an article saying to stay competitive right now every 18 months you have 10 new skill sets to learn as an executive it wasn't like that it used to be 10 new skill set every 5 years now we have to learn 10 new skill sets every 18 months how the hell do we keep up so so that this is the part where you know we talked about the only the paranoid survival like right now you have to be looking at this shit's out there what part of it do I control what part of it do I have not no control over if not a billionaire or a hecta or a decamillionaire man I got to figure out a way to increase my market value or else I'm going to get crushed you're going to over the next 10 20 years if you're going to spend more time on Netflix more time watching all these shows more time playing all these games more time watching all these Tik Tok Instagram if you're going to spend more time on that than building value for yourself and learning new skill sets yes the Market's not going to favor you the next 18 to 36 months but if you do that fortunately for that Community they're going to be okay this doesn't mean a recision is still not coming though okay so let's start pulling apart some of the issues so the geopolitical part of this comes down to is there something that we can do to position ourselves um you were talking earlier about we create a matrix and it's like okay do we go to war how bad is it like all the different scenarios and we run through them um so but let's sort of put the pieces on the table we have um global conflict and that's going to do what it's going to do we need to think about what the plan of attack is there how we position ourselves well we have the debt crisis which is just probably the thing that weighs the heaviest on my mind it seems the most inevitable and because it's so in plain sight and not at all sexy but nobody's freaking out that one makes me the most nervous because you can just run the math and it seems inevitable that it things have to break for that to work um you've got the what we'll call the Cold War of manufacturing and where that's going Apple China India all competing but ultimately how do people begin to actually put together a battle plan so one of the you you had a really good video about advice for young men and one of the things that you said was you need to be aware of what's going on and I really woke up to that at the beginning of co co was a grand uh uh moment where it's like look behind the curtain there's The Wizard of Oz and I began to see how things were actually um happening that was very revelatory and just as if you want to be an entrepreneur the ironic advice that I'm going to give you is you need to learn about the body because if you can get control of your body if you can change your physique you're going to find discipline consistency you're going to see that it really adds up to an actual transformation and you can apply all of that to um business ones are yeah to business to anything really once you begin to understand how the world actually works now you can begin to position yourself to whether any storm but you really do have to understand how the pieces move around the chessboard how you're being manipulated um and I don't it certainly has not then provided me a sense of Clairvoyance and oh I know exactly what to do but I feel like it makes me ask a better caliber of question to me the caliber of question right now is what is the position someone should be working themselves into so I'll paint the picture that I think and then tell me if you disagree if there's a better thing okay number one I think because only the paranoid survive there's actually two things you need to be paranoid about right now paranoia number one is you can pull out of the market too soon and Miss real opportunities and since no one is going to be able to accurately forast the timing you have to be thoughtful about that so one strategy might be just that you dollar cost averag in every day make sure that you have a certain amount of savings so that you're not going to find yourself in a panic situation and as Morgan hous said uh the the whole purpose of having cash in a bull market is to make sure that you don't have a force sale in a bare market and I thought that was a a really wise way so U what I'm going to present to people is there's so many variables on the table and I don't know how they're going to go I just want you to be in a position where you have optionality so we're going to optimize for options to do that you're going to want to be largely in um cash and index funds which is not going to sound sexy and when I say cash I'm talking money market treasury bills something like that five points right now yep which is [ __ ] amazing yep all day every day I'll take it uh now would not be the time in my opinion to invest in anything where you're not just an absolute complete expert where you have so much disproportionate knowledge that you're able to really recognize a deal when you see it so I've heard you talk a lot about some commercial real estate stuff that you're looking at because you know things are going to go on sale you oddly enough I still find this so fascinating you really understand the baseball card market so you'll know a deal when you see a deal so it's like that to me optionality cash um only investing either sort of blindly in index stocks not just completely removing yourself because you could miss you know it could be six months a year before two years before this is who who knows we really can't predict it but that we are in a time of such volatility that if you are not taking every step with sort of Maximum paranoia uh you're making a mistake so that's I'm sure if somebody were here they'd have a lot of questions for that but that's my rough guidance to myself I think that was fantastic I think it was fantastic and we're very aligned look I mean here here's also the thing right like where you're you're sitting there watching some of these guys sitting on a lot of cash why are they sitting on a lot of cash are they they're sitting on a lot of cash in in case [ __ ] it's the fan is that what they're doing or they just kind of sitting on a lot of cash wondering I don't really know what's going when I say people I mean work bshar haway I mean these these guys have a lot of cash right now they're sitting on the table and uh you know maybe they're not buying value stocks yet because they don't yet believe value stocks are here Burkshire hathway okay if you're not in this business if if you're not in the business of Investments financial adviser broker day trader don't play around do not play around and get crazy about it um crypto a lot of people got into crypto and NFD and that was not their world they didn't know about it they lost a lot of money I mean couple guys made $90 million but the people that bought their stuff lost $89 million but they got their money there's a lot of guys that made the money in nfts but it was a gamble for everybody and everybody's like oh my God but I believe it in all this other stuff okay great that's pretty crazy you know what about this and what about that now does that mean nfts are going away absolutely not my kids still buy stuff on robloxs and skins and all that there's an element of it that is not going to go away guaranteed is there 95% of nfts that are not coming back yes probably some of them are going to be gone again my opinion I I have interest in things I know about and I'm interested in like right now you know I'm looking at stuff the card Market got destroyed the last 6 months destroyed guys are sitting on big cards they were thinking they're going to make a lot of money on it they're not right now okay cars that would have sold for $2 million two years ago are selling for $400,000 today but they're going to end up selling for that value they're not going away because it's art it's non- duplicatable assets you can't duplicate these pieces especially if it's things that are very few of okay so if one of one they're not going to go away art Jamie Diamond's got a $900 million art art collection why Dave Dana White is telling me about a picture he has in his uh office he showed me this yesterday that he paid $200,000 for it that picture is probably worth $8 to $10 million today art money in art being made again non duplicatable assets are very very valuable whatever there's few of very valuable but only touch it if you know a lot about it if you don't don't even get close to it if you know nothing about crypto don't even get close to it don't get too crazy oh my God I'm hearing you know Bitcoin is going to go to 100,000 it may go to 500,000 but don't do it because you're guessing cuz somebody else said it do it because you've done a lot of due diligence in it so if you don't want to have that kind of a risk tolerance indexing is the way to go to play it safe now to to the small community of crazies that have an itch and a tolerance for madness Okay this isn't everybody this is some when you have a certain amount of money I'm talking to my Goldman guy he comes in we're having our conversation he says hey here's what I think we can do with this amount of money I said okay what about it he says here's a strategy we can use the next 90 days I said okay I said do you have any questions for me he says I got one question for you are you okay if in the next six months we lose $55 million in this what a great question just straight up I'm like no I'm not okay with this that's a big nut he says uh no problem totally get it then we can't go the way that this is one of the options we can go in because what do you think are the chance of a World War II happen next 6 to 12 months I don't know man I don't know if I'm at 50% but I'm at 10% well 10 is pretty high yeah I agree okay if that happens how bad is it going to be you know like during Co that went to 18,000 I don't know if you remember for that minute that down went to 18,000 everybody's like holy [ __ ] what's going on but very quickly went back to 32,000 so it recovered very quickly okay so what does this mean if you think a possibility of craziness is going to happen that you keep cashing it happens you can buy in dollar cost average okay yes you think you're that brilliant that you can time it historically very few people have been able to do it and those who did got purely lucky do you want to be part of that camp because most people historically what happened to them they missed being in the market on the five best days right and missing those five best days ended up costing the difference between making 133% over a 20-year period to making 7.8% correct and that's a lot of money by the way between those two so if that's not the world you want to play don't do it don't at all do it for me the game we're playing is a different game the game is there's going to be a lot of assets for sale the next couple years okay and if you made the right choices and you have cash and some of these assets don't perform the next couple years there's the opportunity to pick up assets there's the opportunity to pick up small businesses I'm talking to a guy who runs a you know a a business that they're doing 34 million a year and I said how many companies are there in the marketplace that you could buy right now that are between 5 to10 million there's at least eight how many of them can't stand you one of them we never talk I said okay the other seven how many of them love you three of them do the other four know you they know of me but don't have a relationship get it close to them as soon as possible make the following phone call he said what do I tell these guys this what the call sounds like hey John listen man we're both in the same industry how's business and you'll know by their answer how it's doing and you're going to say oh great unlike XYZ we did 32% last month over last year approv okay great guess what that's not who you want to talk to next call you got six more left okay hey Larry how are things oh um yeah I mean look I mean some areas we're doing good some areas why what what's going on did somebody tell you something okay boom check what's the conversation Larry here's what's going on the reason why I'm calling you we're getting calls from guys in our space and some of them are not want are not doing as well as they thought they were going to do and they're about to run out of cash and they're calling us because we have access to certain relationships and contracts and technology that they want to take advantage of I thought just to give you a call because we're within the same space are you in a place right now where you want to entertain possibility of a partnership where we can help you with our company or no if no list I'm not going to impose but if you are maybe we can have that conversation 5c pause uh you know about nine months ago I would have told you to go to hell but uh yeah maybe we can talk perfect um when do you want to come to the office or would J us to come to your office would it be okay if we first met at a coffee shop away from everybody no problem let's do that then you go sit down what's going on look man I don't know if I want to do because I heard this and I heard that and I heard this I don't want to be ripped off and I don't want to be this and I don't want that bro let's just see what we can do with the numbers if we can't great it we can we'll support you go do your thing then the conversation starts so there's different levels right now the marketplace if you have cash a lot of it companies are going to be for sale the next three six 12 months and there's going to be a lot of opportunities for you to increase your market share within the industry if not you're somebody that doesn't have a very high risk tolerance do not screw around the next 6 12 months thinking you are no stradamus and you can predict the future because the market is going to destroy you it's undefeated yeah yeah timing the market is a ludicrous proposition people nonetheless do it but what I find is that it actually attracts people that have a gambling mentality that was my biggest surprise getting into crypto because I don't have have a gamblers mentality at all uh so I just had a failure of theory of mind so I did not see that coming and then I was in a chat group and I realized oh my God all of these people are poker players I was like this is the same mentality like to them they're getting a gambler's high right now of taking a risk on some crazy coin and you know rolling the dice and seeing if they can time everything correctly and I just thought whoa okay that's a a very different Beast so yeah in given that my goal is to help people put together ideas that are actually going to help serve them um this to me feels like the time to learn what paranoia positive paranoia really is success is really a game of mixing optimism and paranoia you're going to need both and if you don't have a constant sense of this could all go wrong I could be wrong I could have the timing wrong maybe there really will be a recession maybe there won't be a recession um if right now feels like Peak predictability you're really in trouble that would be the thing I would just red flag instantly if you feel like you have a real sense of what's going on uh yeah I would say not the right move and so figuring out okay how do we deal in a time of massive uncertainty what I find so interesting about Ray Delio and it makes me very sad that he doesn't like to talk about this is that Ry is extraordinarily good at understanding the historical trend the problem is everything is sort of plus or minus 50 years and it's like when you've got a swing like that there's just almost nothing you can do with it but let me ask you do you see because I think one of the real um one of the real roads maybe it's a 0.1% chance maybe it's a 70% chance uh what do you think the odds that we are already in some sort of Roman Empire like decline meaning already in it and that it will happen in the next 10 to 15 years um I don't I don't know if we're there I'm not in I'm not in the Doom and Gloom yet why because um the great thing about capitalism is what here's the best thing about capitalism cap ISM prevents you from doing stupid things because it's going to hurt your capital okay when I recruited salespeople over the years I gave score there's a scoring system in this book choose your enemies wisely on who you can have your running mates 15 qualities for running mates and you score them based on six different qualities okay I would look at guys and I would say which one of the people I work with is going to give me the least amount of headaches and here's what I learned okay extremely good-looking guys and girls single in their 20s gave me the biggest headaches why because everybody wanted to be with them and testosterone levels high at that level and guess what they're going to fool around you may be high one month and kill it next month you're dating three girls in the office and one of my best girls who made a lot of money last year you just broke her heart you left her for another girl she can no longer come to the office cuz she's embarrassed and she left us to company so do that for about 3 years and then go see 17 therapist who have no clue what sales is like then you're going to realize I have to change my Approach then I'm sitting there and saying man that guy over there is so boring dude he is so boring nothing's exciting about him but he went from making $500 a month selling Insurance to $1,000 a month three months later to making $2,000 a month 3 months later to making $4,000 a month a year later then he's making $6,000 a month 6 months later then a year later he's making $8,000 a month then three and a half years lat is making $18,000 a month steady man you are there's nothing about you that inspires me but you know what here's what I learned he was married and he had kids so what's the point he has to make it work he has to make it work cuz he has to protect those two kids that he has he has a mortgage he has to make it work he can't go screw around he's married the likelihood of him going and clubbing and partying with all the other single people and smoking and doing ecstasy is lower so I realized I have to invest my time in people who are the most bankable longterm stable home stable relationship more things to live for more things to work hard for more things that'll prevent you from making stupid decisions perfect now bring that into the Roman Empire following all this other stuff okay Jamie Diamond is not going to want to screw up what he's doing and his legacy is going to matter to him because there's no way in the world he's going to let Sandy wild be able to say I told you guys that guy failed he was a nobody he's not going to let that happen and he's running the most you know company that every day s trillion dollar they see come in and out JP Morgan Chase right um Apple Amazon Gates Microsoft these guys have assets are they going to let something crazy happen to it I don't know musk who is standing up against the establishment he's not okay with what the establishment is trying to do and with social media a lot of this bullshit's being exposed whether it's talking about ESG and what Black Rock and you know they're trying to do or open Society Foundation or these Dei scores CI scores which California is famous for they're getting exposed right and people are talking about it so social media is allowing us to hold people accountable I don't know if you saw what just happened right now this week with Supreme Court having a discussion to say social media companies cannot take anything off their websites whoa this week so censorship at the highest level you don't have the right to take anything down people can post whatever they want that's crazy if we go that direction was that a preliminary preliminary it's not yet no it's fully preliminary you got to look into it yes so you got my attention so so because Supreme Court is now what 5'4 right so now it's kind of like they can impose and kind of push the envelope there okay and they can protect sanity in America with some of the ways that businesses have been bullying people during coid Co what it did do which was great it was so awesome in one area you know what it was what's that quote you know absolute power you know uh reveals what this person's driven by right you know and and Lincoln said if you want to test someone's character give him power and see what they do guess what during coid who did we give power to fouchy CDC California New York uh governors of some states little it too much better they were like Emperors pretty much you know hey if somebody in La you see them without wearing a mask text this word and we'll find him and d d what are you talking about you're paying people in LA to snitch on other people it's a part-time job what do you do for a living I snitch I make six grand a month really yeah what an incredible way of making money so during Co if we're not oblivious and not naive we realize what the people of power really wanted to do and we saw that in Europe everybody's walking around with their coid passport and they're kind of doing this kind of stuff um so to me it was fantastic to really see them show their cards oh this is what you're trying to do to America we're not going to let that happen what did that do it got guys like Rogan to flip I'm no longer on your side you got guys like Elam musk oh so you were full of [ __ ] the entire time I thought you were trying to do something good got it I'm not part of your Camp I'm GNA go by Twitter Scott Galloway this guy's full of [ __ ] Professor Galloway there's no way in the world he's going to buy he's bluffing all of you he's fooling all of you there's no way he's going to buy Twitter Elon Musk bought 100% of Twitter and now Scott Galloway on Bill Mah last week with Andrew Kom saying we need to show some Grace we were wrong during Co we were wrong during Co I'm sorry Professor Galloway did you show Grace did you show Grace oh now you want Grace but you never gave everybody Grace and you're this professor from New York who's had exits of a couple companies and you've not taken salary from UC Berkeley respect you you simply go and do the work I've seen the money you've given to Berkeley three and a half $4 million but you don't have any Grace you didn't show people Grace so what happened now but it was beautiful you saw what universities were doing Harvard got exposed during Co no more campus you guys got to go home okay so does that mean the annual tuition is still 60,000 or is discounted to 20,000 no no still 60,000 what for what you're not giving me food you're not giving me place to stay you still want me to pay $60,000 yes we do Bingo you just showed your true colors beautiful that was fantastic hey we want you guys to go and work from home really yes all right [ __ ] so I'm living in New York I'm working for x company they're pay me 250 Grand a year I can't live normal life in New York I'll go live in Florida work from home except now I'm not paying the taxes oh no no no no we don't want you to work from home why now I can work from home from Florida no we want you to come back to New York now got it so you screwed up the policies but now I'm in Florida I'm not coming back to New York because I actually love Florida and I'm stuck here and people from California went and work from home in Texas and now they're saving at 133% now they're not coming back so they were like oh people going to come come back they never came back right the people never came back so this this Empire is falling the great equalizer Tom is social media if social media sticks around and they can't silence people from sharing their thoughts and opinions I'm not talking about people getting up there and saying we should go do this I'm not talking about that I'm saying hey what about this and we start questioning things then the people of power that revealed their cars not everybody but the establish that wants to control more the people they're like yeah we're not we're not doing that bro you know what do you do if you're playing poker with somebody okay and you're going for the river and you didn't hit you know F you know whatever uh uh pick something you didn't hit your three of a kind okay you missed everybody you got two pair it's a jack you got a jack you got a jack on the board all of a sudden you're about to Bluff the guy maybe go in 50% of what the chip is you know there but one card accidentally falls on the ground and you see it it's an Ace and there's an ace on what are you going to do what are you going to do you already know you lost so guess what the establishment revealed their cards and we saw it and if we don't realize it and do something with it and they still move their agenda it was our fault all along but if we site and we unify and we come together saying hey guys we the people have the power they ain't going to push us around we love this country let's fight for what makes this country great let's go and support what this country was great about let's bring it back to that let's be a little bit more responsible let's have better incentive programs let's expect better policies from them let's hold them accountable to what they say they're going to do now we can go in the better Direction and we encourage certain people to run and get involved in politics and office so I don't think it's going to happen because I think on one end capitalist the rich people are not going to want to lose all them all their money to their eventually going to be like yeah I don't support what you're doing Soros yeah I don't support what you're doing Charlie Munger said something very interesting he says look I love Larry thinkink but I don't want him as my Emperor what a thing to say Munger here's a guy that's 94 years old I don't know how old he is but mid 90s he saying hey I respect Larry fin but I don't want him as an emperor because they know what Larry's trying to do people are not dummies right so those types of people I think are going to fight each other enough and if we keep our eyes open this will continue to be the greatest country in the world and hopefully even better if we rise up to it if not the best days are behind us if we don't learn our lesson from the last three years growing a business is hard and if you're in the thick of it you know that as your business grows new challenges will be coming at you from every conceivable angle manual processes are multiplying and there is no one source for upto-date data 36,000 that is a number of businesses which have upgraded to netsuite by Oracle netsuite is the number one Cloud Financial system streamlining accounting financial management inventory HR and more manage risk get reliable forecasts and improve your margins right now you can download netsuite's popular kpi checklist designed to give you consistently excellent performance absolutely free at netsuite.com Theory that's netsuite.com Theory to get your own kpi checklist netsuite.com Theory it's interesting I have a slightly different take if I put my I'm paranoid hat on uh so I think that at some point we started attacking the very idea of structure itself which is how you end up getting into the gender conversation and once you start if it takes hold and it's a very difficult argument to figure out how to be both both compassionate and draw hard boundaries you put lines and boundaries and one thing we didn't talk about is you create rituals that create lines that I'm no longer a child I'm now an adult like really clear demarcation points instead of like oh transition effortlessly anytime from anything to anything it's one of those ideas that sounds awesome and it sounds loving and it sounds caring but the outcome of it is is to tear at the um infrastructure that holds the society up and so it's pretty interesting this is something that um Douglas Murray who I have not ever sat down with but in very familiar with his work he's talked a lot about Camille laalia uh has talked a lot about this that in endstage Empires they become obsessed with pulling apart the um structures of the society and it tends to manifest as a conversation around the ultimate structure which is male female so this is one of those it's a a positive feedback loop and again I'm I'm just wearing my paranoid hat I'm I'm not betting against America I love it I want to be here um in fact I I this is going to be weird I can't believe I'm about to say something that's going to sound political it is not meant to be political but I want to fly an American flag I want to remind people that this is a beautiful country and that it's worth fighting for ideals of personal freedom etc etc uh and that the way that we rebuild is by putting structure in place that has a metric associated with it so we can see whether we're moving in the right direction or not that would be the the thing so anyway it this feels like a positive feedback loop I don't have a clear picture on how at a societal level we unwind it but I do understand it at the individual level and the things that we as an individual person can do uh to make sure that we are doing something that will be very sweet you're very sweet and here's what I mean by it um I am so confused when I hear a guy who created thousands of jobs created a billion dollar of value for people who owned Equity that you're worried about saying I don't want to be political about the American flag because it may offend somebody no I didn't say that I know that but what I'm saying to you is even the fact that you gave that qualification to me is um is where I uh I don't think we need to be there here's what I mean by it I'm talking at this Christian School that my kids go to and the the dean what is what is above a Dean whatever the what do they call the person that runs the school what's I thought it was Dean no there's one other guy there's something about it that uh whatever it is the dean reports to this guys do you guys know what that's called or no not principal it's a different name they have for him Headmaster is it Headmaster sure okay so Headmaster and uh he gets up there and he's giving this talk to 600 kids and he's bringing me up Veterans Day he's likew you know America's not perfect and we have this and we have flaws and all this like peak of Co like a year and a half ago I'm standing there I'm like dude like where have you lived you know have you lived in Iran have you lived in other places like what what they think about this place and I get up and I and I say first of all thank you for this and ba and I said America is the greatest country in the world okay and you know we don't care if you're a Christian I don't know what your faith is we're getting along I'm Middle Eastern bro you're white every time we're together we get along best conversations when I'm talking to you fantastic convers I got so much respect for you to build what you build your wife came in sweetheart gave me a hug warm welcome your peers your people here how you working how you're moving what you're doing having a blast creating great content great conversations but but I do think we need to we need to have some um pride in how great of a country we live in I think we need to sell it I had Governor Des sentus on the podcast two days ago we did an hour live podcast he flew into the office and it was a great conversation he's one of the candidates that's U you know potentially presidential candidate and I said can you sell America please sell America and you know he did his best to sell America and his point of view but I think we need to do a better job selling America saying selling the ideas of America here's what happened the last couple years I'm having this conversation I don't know if I'm having this conversation with Rogan or whoever I'm having maybe it was on the Rog yeah it's on the Rogan podcast we're talking on communities that hurt America okay I said one is the tolerant Christians who hurt America they're like it's okay it's okay it's you're either a Christian or you're not you can say whatever you want about Muslim Muslims but what guess guess what Muslims are they believe their religion okay you're not going to be able to say things about their Prophet you can't go say something about Prophet Muhammad see what happens go say something about Jesus see what happens yeah it's okay he's just upset you know okay cool all right the other one is Libertarians because Libertarians who are like do your thing bro as long as you do your thing I'm good do your thing do your thing do your thing do your thing do your thing all right now they're doing their thing with your kids now what do you want to do it's too late it's in your school well no no no I didn't say that well I'm sorry you said libertarian to each his own well no no no that doesn't mean you come and do this to my kids no it's called as long as you do your thing I'm good to do your thing they came back and haunted you through your kids no I'm not cool with that well then maybe maybe you're not really a Libertarian maybe there's a different element to your politics that you got to really reconsider the the the wealthy you know conservatives who raise good kids who all of a sudden have all this money but they're afraid God forbid it leaks that they have an element of conservative oh my God I may lose my Audi I may lose this I may L and go we won't be invited to those parties and they're not going to like us and today I'm having a conversation with Chris Cuomo CUO and I have turned into very good friends we don't agree together politically we have a great conversation to get I'm at his house in in uh Sag Harbor and we have lunch and we go to his place and all of a sudden he surprised me with a call with Robert down Junior hey what's up pbd what's up Robert down and I say hey kids come see what this is oh my God it's imagine a reaction of kids who watch Iron Man die and they're like crying saying he's alive he's alive he's alive right here in the flesh but we're having these conversation I'm s thinking to myself did these guys know my political positions that I take and we're getting along it's okay it's not the end of the world this is what I believe in you know but these Republicans that conservatives that took their money and and they're like look as long as we protect our money just buy real estate have some assets but don't do anything with all this money we have no problem the other guys went and bought New York Times the other guys went and bought wo Time Magazine China owned Forbes 95% of Forbes was owned by China and 20121 international woman of the year is who Hillary Clinton what she doesn't run a business how about Oprah winfy how about Cheryl Sandberg you give it to Hillary what what did she do in business Forbes is all business the guy who ran Forbes the son the guy who started it was his father but the guy that ran it that took it to the next level he had a jet Google this it says capitalist tool his jet on the corner the name of the plane was capitalist tool his yacht it would said capitalist tool the helicopter said capitalists tool these are the tools a capitalist use he had all biggest collection of those eggs you know the Russian eggs there's a name for those Russian eggs Fab Fab that was estimated to be half a billion dollars W this he had he had 15 of them his best friend was Elizabeth Taylor best friend for his 7 birthday bir party if you've never seen this guy's documentary his 70th birthday party everybody's there you know what he gives to everybody on his birthday party a Rolex who does that this guy's a capitalist at the core and guess what we admired back then wow life of the Rich and Famous today is life of the poor and the Miserables no we're admiring things that people are grown up to want to pursue no we got to edify the guys that busted their tailes to build a company we got to edify the people that are creating economy we got to edify people that are going out there being good net positive to society we need more Tom biles in America but those three communities and I can keep going with a couple other communities but I'll stick to those three communities I think they have they have they have a u they have given others a lot of power as a as a as a guy who was an atheist for 25 years of my life in the Army I've told this story before in the Army I was invited to go to this uh uh uh camp with this man 70-year-old man and you know we were able to jump into into this Lake and play poool and all this stuff but every night for 1 hour he had to sit down with him and listen to him read the Bible and I would sit in the back I'm like dude you can tell me about Bible all you I want you go back to Iran and see what I saw when we got bombed on go ahead go see what I saw go see the parks I used to go to and these buildings that were torn down when I see what's going on right now in Palestine Israel I live this I the whole alarm T Jo tab Jo ales attention attention red signal means that planes have crossed the border the enemy is here you know what that does when I listen to this I I go to YouTube sometimes and listen to to see how quickly I can go to the 8-year-old kid and see it the other day my sister sends me a picture says hey this is me and you at 8 years old you remember this I said okay what's the big deal with this picture we got a lot of pictures like this she says you know how you always talk about the windows dad used to tape look at the windows I see the windows it's the tapes from my dad they put the tapes because when bombs would explode they didn't want the glass to explode all over us they wanted to stick together that's what we did in Iran and you know so today when you see this whole concept of you know I'm at this camp in the military you know he gives me a Bible he says this my parents gave me this Bible December 24th of 1974 and son I think you need this more than me I said sir I promise you're giving it to the wrong guy he says just please take it from me you need this I said I don't need this keep it it's a gift your parents gave you I have the Bible till today he gives it to me I don't read the Bible it sits at my barracks in the Army but I started praying three times a week three times a day every day and here's how my prayer was God I don't believe you exist I think it's for weak people but if you do exist cool let's see what you got if you don't it's going to feel good talking to myself anyways because I know nobody in boot camp now from Iran there's not a lot of Iranians in boot camp So eventually that idea of having faith is what Hitler feared he did not want people to have faith the whole Dietrich Bon Hofer story if you read what he did he didn't want people to have faith he wanted to eliminate having faith does that remind you of anything we can't pray anymore we can't do the pledge allegiance when kids go to school oh but we should learn about lgbtq stuff yeah it makes a lot of sense let's take out faith and let's replace it with somebody may be gay you may be gay your mommy and daddy don't know so guess what happens parents in Florida are saying we don't feel comfortable because our kids want to transition and Governor the santis doesn't allow so we're moving to California they're coming to your state and people have started making decisions saying it's okay if they take these pills under 18 years old what are you talking about what are you talking about so an under under 18 years old I can't own a gun I can't join the Army I can't under 16 I can't own a car I can't have a driver's I can't drink alcohol but I can change my sex you tell me somebody who has Common Sense sell that to me over 18 go do it totally get it under 18 in what logical manual of a group of a 100 people that can reason they could say this makes sense there is no none of that gaslighting so we have to sit there and listen to it and say and by the way I know this is offbrand for you this is not the kind of conversations you have on on you know I don't want you to get uncomfortable but I am completely comfortable for me I think we need to go back to square one we need to go sit there and like I was having this conversation with a group of people who are not Christians and I said you got five countries to live in where do you want your kids to be raised a country that's atheist they don't believe in anything a country that's Catholic a country that's Muslim a country that's this a country that's a country country that's Christian what do you want to raise your kids where do you want to raise your kids they're like well probably more country that's this okay why why because the values and principles are XYZ great no problem even we had a the debate the other day had two Muslims and had two Christians on a podcast and they're debating each other and the guy's talking about all these things and then I said listen I I I have a lot of Muslim friends I have great conversations why don't people immigrate to Muslim countries why do Muslims come to America I don't know why do we in America have all these different denominations all over the place nobody cares why don't they move in to these other places oh it's purely economical okay why AR we moving into many of these other places that economically they have a lot of oil why are we not doing that well it's this this that totally get it by the way to the Christians who get upset and like well you know but you don't understand what Muslims are doing and they're going to do this and eventually they're going to run America of course they are how could you say that they're having 2.9 kids per women and the rest are not not even close so mathematically yes we're eventually going to have a Muslim president if we haven't already had one eight years ago we're going to have Congress being controlled by them and that's also Senate on the competitive side instead of being upset about it why don't you start having more kids we're not having enough kids so the people that should be having more kids are not having having enough kids and the people that shouldn't be having kids are having way too many kids this is also a problem that we're not talking about so to me we have a lot of issues some we can address the next 3 to five years some that we can fix and make progress on the next 10 years some of it's going to be 20 and then some of it is what Bray doio talks about and that he's talking Investments but I'm talking a cycle of 50 years that it's going to take us but these are the types of things that we should have open dialogue about we should be comfortable selling uh America we got 53 million immigrants in America more than any other country in the world and it's not even close there's a reason for we can ask the question why maybe we offer the best thing in the world and we need to protect of that and people who come here it shouldn't be I'm having this conversation with one guy on my podcast I said if an immigrant comes to America who owes who does America owe immigrant something was the Immigrant that owes uh the the country something oh America was the Immigrant America doesn't owe immigrant nothing nothing the person coming here owes America everything cuz they let you in that's who owes the other person well no you you're how could you think like that you're thinking like what they did a 100 years ago no no it's called logic it's called logic you're allowing me to come into your Homeland and you owe me dude you don't owe me I owe you thank you so how do you show gratitude how how are you going to show gratitude so you're an immigrant Now in America how are you going to make America a better place like like what we had before when you would go to you know uh um what's that island that you would go to and you would show what talents you're bringing and then would let you into America Ellis Island Ellis Island right okay so all what do you bring to the table you know nothing I'm just excited about the benefits you guys offer but what do you bring to the table we need to kind of present this argument why should you earn the right to come to America and what can we do to get the best best immigrants coming here what can we do to get the most educated people coming here who are from IIT graduate people what can we get the people that are best in math that are bringing something here these are very basic Common Sense conversations that the last three years people from Academia and universities have confused the hell out of kids where kids coming out of college today are questioning common sense at a guy that's one of my seite Executives every time would talk to him I would say how's your daughter doing how's your daughter doing how's your daughter doing he says breaks my heart I said tell me why my daughter and I were like this I spent $200,000 sending her to this XYZ School in Illinois every year my daughter hated me more by the fourth year she didn't even want to come back to the house she moved to LA wow I said you got to be kidding me he says Pat I spent $200,000 to lose my daughter now here's the thing odds are my daughter's probably going to come back but she may come back at 30 2 I could lose 10 years of my daughter's life at this age at this age I will look at his face this is a performer this is a rockstar he's a leader he's a multi he's had multiple exits he's a leader successful guy but you could see the anguish on his face that's not cool that's not cool so you want me to send my kids to you and you pin them against me and I'm the one that paid the money to go to your college that's not okay while you're sitting on $60 billion of money in your endowment that you can afford to pay every single student's College tuition for the next 100 Years yet you want us to pay you $60,000 per you and I stay home instead of go to your college yeah you you showed us who you are and I I am not going to forget it I'm going to impose and I'm going to keep talking about this stuff and enough people are going to sit there and say that was an interesting conversation you know maybe we need to think about that babe did you hear what he just said did you hear what she just said and then collectively 2 3 4 5 10 years down the line like I used to not be awakened to see what's really taking place cuz my head's down buil building a business I don't care about politics I'm just simply trying to build a business and then all of a sudden you're like no man I got four kids an 11 10 and a 7-year-old and a 2-year-old we got to kind of be involved I know I went off tangent but when you made that comment about I don't want to be political America I think you're the prime example of what makes America great and we need more people like you yeah so let me um make sure what I said is clear so what I said was I can't believe that this is a political statement but it is loving America shouldn't be political I wish I could say who the following person is because people know him uh but I have uh somebody I'm friendly with I would not call him a friend I just don't know him well enough but uh people certainly know his family and he said oh I put an American flag up in front of my house and I was like I guarantee that's going to get torn down he was like yeah it already has been and I I was like H I hated that I that that was obvious that in Los Angeles flying a flag is a political statement that for many borders on right-wing extremist and that is so startling to me as a child of the 80s where I was supremely proud to be an American it was awesome and I could take it for granted I mean obviously not everybody in America loved America but that's how it seemed I thought all of us like there was just enough people that were so proud of America that you could take for granted so I never knowingly ran into anybody that didn't love America as a kid it was an awesome feeling and as that has waned I've often said to my employees like I'm sad that you guys didn't get a grow up in the 80s when you knew and look true not true almost doesn't matter but you knew America was the greatest country in the world that the world was going to get better by the day you knew who the bad guys were you knew who the good guys were and you were it like we were exporting our culture everywhere everybody wanted to come to America it was awesome and to have watched that flag is crazy now for me the way that the you you speak as a um Warrior for the cause that's my language clearly not yours but like that's how you feel to me and that isn't my natural voice and I get a lot of [ __ ] from people I respect a lot um in the natural way that I talk uh you said I was very sweet I'm actually not trying to be sweet I'm trying to exist in the world of actually understanding all the pieces that are rep place so I can build a strategy that will actually be effective and so what I see is that you're you're in a a fight over values and as long as you understand that you're in a fight over values and then you can either realize you have to convert them religiously because values are religion you have to convert them religiously or you have to defeat them I won't even get into what that means but those are your options and so I'm simply trying to be honest with myself about what what the battle really is because it isn't that they don't understand your position it's that they think you are wrong and that you are going to ruin lives and I think that's how you think about them that it is uh they are wrong and they're going to ruin lives and I will say people with ineffective ideology are wrong and they're going to ruin lives that's certainly my stance so then it just becomes a question of where do we where are we all drawing lines about what's right and what's wrong but once you want like to me there are only two conflicts you can have there is um much to do about nothing where you just have different base assumptions so we believe different things to be true but we don't even realize it so I believe the world works this way you believe the world works that way and if we could at least least explain that to each other then we could be like oh wow if the world really did work that way then I would understand why you see it that way Collision of values is there is a God God is good God is right and God gives us these Commandments in a book and if you adhere to them you're good and if you don't adhere to them you're bad now if I don't have that value now we've got a problem because there's it's not that you don't understand what I'm saying like I don't believe in God I as far as I can tell it is just self-evident that there there is no God now however and this gets where [ __ ] I drive people crazy but since I know everyone has a god-shaped hole in their heart and that you eject religion at your [ __ ] Peril and what we are living through right now is this is what it looks like when you eject religion it will get filled with something because people have a god-shaped hole in their heart they are going to have a religion they are going to have something that makes them feel like a messiah 100% And the fact I've heard heard you talk about this so I know you know George S Soros literally referred to himself as a God and said that I have a messiah complex uh that I worry sometimes will get out of control it's like yeah that's the Human Condition and so we all want to feel like we have done something so Grand and so joyful to this world that we feel a bit of that Messiah complex and I'm team be paranoid distrust yourself that's my team I think people blind themselves and act a [ __ ] fool and they take everybody down with them now I'm also optimistic and I know that we're capable of love and so right now I have kind of a uh a dark hat on because I want people to understand what my position is my position is people are [ __ ] stupid they do dumb [ __ ] all the time and I'm one of those dumb people and so I'm really trying to understand what's actually happening CU I have my God as you said earlier they have their God and I could get them to understand my God which is probably rounded closest to freedom and they're still going to disagree and now because I know how violent and destructive humans can be for the last three years I have been like oo you know when an earthquake first starts you don't know if it's going to be bad or really minor when 2020 popped off I'm very fortunate to have an extraordinary view but from that extraordinary view I could see La burning and one of the photos on Twitter was a picture of my house and it said burn the rich and I'm watching La burn as I'm reading that tweet and I'm like well then I feel the ground slipping underneath me and I don't know how bad it gets and so I opened all this with Now's the Time for paranoia I don't know what the future holds maybe tomorrow everything's great and Israel diffuses and Ukraine and Russia diffuse and all is well and Taiwan gets left alone for another generation maybe that'd be awesome and I don't know I don't know I can't predict the future but godamn can I feel the Sands moving under my feet Yes do I know if it's about to be big or small no why do create content why did I start or why do I do it now why do you do it now you don't have to do it you you you have plenty of money why do you do it you trying to be famous I don't think so I don't have why do you create content I need to be famous uh I create content because I I I don't think that's you I I don't see you as a guy that's doing it because you want can I take a selfie with you Tom I don't see you as a guy like that yeah uh I do it for one reason and one reason only I really believe that I am of average intelligence and the thing that separates me and and my beautiful house and all my money is that separates me and all of that from an average person is a set of ideas and these ideas don't feel like they are mine I feel like I am a steward of uh if I were really going to put like hard language to it I'm a steward of the Dow deing meets Carol DW's mindset book with a little bit of Angela Duckworth and Joo willink thrown in for good measure those ideas are so powerful and so effective that if anyone adopts them they will make their life better now once you know that that is true if you have my wiring then you want to get those ideas out as fast as you [ __ ] can so a I love seeing other people have that moment of Awakening where they realize that they're capable of more and I'll tell you a story and this is um this is a true [ __ ] story and it's one of my favorite stories it's tragic but I know it was real uh somebody I love and care about very much who at a time when nobody knew who I was and I'm driving a Ford Focus I meet a former drug dealer and he's working for me and I say look don't bring violence to my floor and I'll give you every opportunity in the world because I can tell you're smart and so we have this packed and he comes in and he works and he's incredible and he helps me unify a line made up of both cryp and bloods long story and he's like hey originally I was going to use this job as a front for my drug money but like you've really shown me that I can actually leverage my intelligence to to do something straight ended up being awesome this guy turned his life around turned his family's life around it was unbelievable it's one of the things I'm most proud of in my life is just having been some small part of this guy's transformation ends up getting killed by two kids who stole a car [ __ ] stupid but whatever at his funeral his daughter came up to me and said um actually she said this from the front of the room I want to thank Tom and Lisa we all know my dad was a gangster and you she didn't say totm ideas but just to bring It full circle you taught him a set of ideas they changed his life and they changed mine and she ended up going from almost getting kicked out of school to uh being valid dictorian of her class like seven years later I mean just absolutely unbelievable she's like our lives will never be the same because of these ideas and dude my whole life because I believe in meaning and purpose it's the most important thing I'm highly verbal I know I'm good at this and so eight years ago I said put me in front of a camera and I will get these ideas out to the world aggressively and that's why I do it interesting so um profound story with that guy by the way you know if you don't bring violence to your blood Crips unified and steal in the car they kill him um you know I I I think there are certain people who have the ability to communicate a message and get people to see uh things that others cannot see are almost responsible to do something with those gifts you can choose to be 100% selfish and not do anything with it or you can choose to do with her which you are doing a lot with with the ideas where the daughter says you know set of ideas that change the way I view things let's set Faith aside forget Faith we're not debating Faith or God this is not the podcast to do Faith or God that's a simply a different conversation over dinner if we even ever do it but if you're a math guy and you're a data guy and you're a guy that knows x + yal z then you know what works and what doesn't work you know what philosophies work and doesn't work you can take the position of you know Patrick you have your ideas and the people in California have their own ideas and you know they have their reasons for that and you as a capitalist you know Freedom all this stuff it's this great but there has to be a way to measure and see which ideas produce better results and then if you do which is proven then what's our job to do is our job to sit on the sidelines and not offend the people who were wrong and let them keep harping and convincing others that they're right is our job to sit on the sidelines and allow them to keep confusing kids in universities is that our job to do is our job to allow these guys that keep asking for $60,000 of tuition today which when you're looking inflation and cost of living where cost of living's increased since 1980 212% but cost of education has increased 1200% a thousand you mean education has improved 1,000% over the last 40 years you and I know it hasn't you and I know a four-year degree doesn't have any more meaning today than it did in 1980s maybe it had more meaning in 1980 than today because today our teachers are more political figures and they're more social you know organizers dividing people against each other yeah so I think I think for me I'm not worried about the faith conversation I know what it is to be an atheist I Was Won for 25 years I have my own reasons for doing what I did for me it's more about a numbers guy a data guy who watched everybody and my mother's side believed in rich people were greedy and my dad's side believed poor people are lazy and for my mom's side who were communist whose Bible was The Communist Manifesto and my dad that was an imperialist it took me 20 years to realize who was right maybe even 25 30 years to realize who was right we had a family relative of ours his name was Luther alas amazing man this was my guy I looked at okay when we were when I was a kid would' go to his house in Upland you know where Upland is Upland is uh couple hours away from here San Antonio Boulevard closer to like uh Rancho kumonga is where it's at like an hour and a half away from here okay without traffic it's 45 minutes to an hour once year we'd go to his house you'd go all the way up San Antonio then you'd make a left on the street and at the end it's his house he had a massive 40 foot bird nest here bird cage here you'd pull up he always had a Cadillac Park here he like jaguar and his one of his relatives Alfred would live here above the parking lot above the garage and then you walk into the door to the right was his office you walk a littleit more hallway all the way down is his bedroom you had a jacuzzi in his bedroom room living room here you'd make a left come down here is the kitchen Big Island I would always sit closest to the uh window my backs to the street I would sit here and I would watch them talk cuz I'm not family my dad was best friends with his brother since they were born in Iran so luter was an entrepreneur he made a lot of money he owned golf courses if you went straight you made a left you came here there was a pool table he had a picture on the wall everybody was dressed white family dog daughter son everybody and then he had a picture with Al Gore even though he was a conservative why do you have a picture with Al Gore good friends with Al Gore as a conservative okay and he would go outside he had a big TV here we would watch to Bulls play pool swimming pool outside changing room here like a small little one-bedroom PLS basketball court tennis court here and he had a garden of fruit and all this stuff and I would watch him how he would be with his kids he would always poke and challenge him to debate issues he would says I no longer believe in God at a moment today you guys have been sold a bag of Li Jesus wasn't real and his kid would they would lose their minds and they would go on a three-hour debate and he would say okay I'm back to believeing again and he would say next thing such and such president is making a worst decision ever how could you say that that and it was always how could you say that and the whole family was debating I was fascinated every year I'd see him so from 13 years old to 18 I saw him seven times and I saw this guy as a possibility one day I can be like him anyway was later on in life I ended up winning in business and he died four years ago three or four years ago we're at rafi's place in glendel and his daughter sees me Jackie and his son Vladimir who's a pastor now San Jose when I was a troubl teenager he invited me to be part of this basketball organization called the centry city Basketball Association centry City basketball we would play at Echo Park terrible Community Echo Park is like not a safe place at that time not terrible Community not a safe place so shootings all this stuff blood crib black diamonds everybody would be there and we' play basketball all of us so he was patient with me as a kid and then I joined the army and boom so we're at rafi's place and I said Jack you want to say something to your dad he says great I said you mind if I come over no problem 20 people sitting at that table to have a big family I says Uncle Luther can I tell you something he says yes he stands up I speak to him in Assyrian and English like it's like Assyrian English together Aramaic I said you don't know this but for 10 minutes I recite Vivid memories I have of what this man did okay and I kept saying you did this one time and you would do this and you would do that and you said this to your daughter one time you said this to your son I was sitting there when you confused them with faith and business and this this that and this is how you would watch Michael play and Magic play and you would do this and I'm describing his entire house he no longer lives in that house he's crying I said you don't know this but you're the reason I'm a businessman today if it wasn't for you I wouldn't be where I'm at today my dad played a role of love and being a man but you played the role of me being an entrepreneur he inspired me and at 33 years old I go to my mom and I said Mom can I ask you a question yes why' you always say bad things about Luther what did he do to you you always said he's Rich he's greedy he's this he's that and my mom I respect her a lot for what she said to me she says you know what maybe because once he made the money and he was running his companies we never saw him again I said Mom he's busy he's running businesses we're not family to him said no you're probably right but I didn't like the fact that didn't see him because I actually liked him like you tell me this at 33 years old do you know how much this affected me when I was 13 14 years old I thought this was a bad man he says no you're right we just had this conversation my mom's no longer a communist but at that time you know that's the what's the point here the point here is if you have proof that a certain way of ideas and philosophies Works sell it constantly and protect it and defend it don't play vanilla don't play neutral I think sometimes us you're no longer a smalltime guy bro you're a very big guy we got a lot of influence you got a lot of people that follow what you got to say and you're are very you know when you kind of you do your humble brag you're a super smart guy yeah you're like you're a super smart guy I'm not at your level of you're a very very smart guy on the way you process issues and what way you can talk and you're very reasonable and non-emotional you stay you know where you are when you're explaining it um I think it's a risk for us not to defend the logical things that prove that way worked better and then we sell it over and over and over again because eventually you're going to produce 50 other Tom Bill use 100 other Tom Bill use and that's all it's going to take you're not going to need to have another million Tom bilos you just need 100 tomilu if another 100 tomilu do what you do then we're protected the next 20 40 years but if we're a little bit too timid and too careful to defend ideas that have proven to have worked again set aside Faith you can take Faith any way you want to take it I think we have to be um louder Warriors like you use I use that word True Believer Crusaders of guys people [ __ ] about the rich people don't pay taxes you know what percentage of taxes Rich pay the top 5% pays 80% of taxes what are you talking about no AOC said this no no this is pure data how dare you say that no no how dare she say that and confuse the [ __ ] out of you this is data guys this is not for me this is how taxes was paid to the IRS I never knew you sure about this go verify it it's on the US Government website that's insane of course it is but they sold you a bag of goods and you bought it because it was for sale stop going to Macy's and looking for sale ideas pay full retail and don't buy these ideas that are nonsense because they're stealing decades away from your life that's the only difference for me where like I remember 5 years ago when I started three years ago when I started talking politics dude trust me I remember what everybody in the marketplace said about about me I know exactly what people were saying about me because Ward would come back to me and they would say kiss of death for pbd he's done we had 3 million subscribers at the time and I um decide to talk politics and I'm like dude I don't know how to do this part because I know it's going to piss a lot of people off but I'm respectful and I'm curious and I'll talk to anybody I don't care who you are you can be a communist Professor from you know Riverside County you can be you know slavo xek you can be anybody I'll sit down with you let's have a conversation Nom chsky come on down let's talk I don't have any problem right but we started the podcast on a separate Channel with zero subscribers our first live podcast was 57 people watching us we got seven comments we were so excited now imagine how hard that is to do because you got a 3 million subscriber channel on this side and now you have to start from scratch right you know about this I know you know about this and then all of a sudden that grows and now value taming just crossed 5 million today and pbd podcast is at 1.45 whatever it's at right and we're getting you know however many eyeballs on a monthly basis what happened was it a risk yes did we get people thinking yes people stop me nowaday like man I got to tell you man I never missed the podcast how about the entrepr I watched that stuff but I really want to know what you think about current events and very interesting what does this mean this means I think people want to know a little bit more about what Tom Bilu thinks that's all I'm saying maybe they want to know a little bit more because that brain has a lot to offer and and the life you've experienced can give people perspective but more from a position of there is a scoreboard this philosophy won but this philosophy is louder don't let the noise convince you that this philosophy is not working this is the right way to live I think we have to sell that and I think some people are afraid of doing that at that level pbd what a joy this has been you've got the new book coming out in December absolutely get it I read every word it's fantastic uh where else can people follow you I mean you can order that on Amazon but you can find me YouTube Twitter all over the place Patrick B David O T I love it well worth the time boys and girls speaking of things that are well worth your time if you haven't already be sure to subscribe and until next time my friends legendary take care peace to learn more about these complex topics check out this episode with the one and only Jordan Peterson man I am beside myself with excitement to have you on
