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It allows me to basically put out an episode every

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Head on over to Freeman Beyond the Wall dot com,

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forward slash Support and do it there. Thank you. I

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want to welcome everyone back to the Pekingana Show. Ron

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Dodson's back and probably couldn't have picked a better time

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to ask someone who runs a hedge fun to come on,

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are you doing Ron?

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Speaker 2: I'm doing great. Thanks for having me again, Pete.

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Speaker 1: So this is Monday, the what is today? The seventh? Indeed,

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and apparently apparently we were supposed to see the cratering

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in the market today. That didn't happen. Well, I mean,

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I guess early on things looked really really bad and then.

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Speaker 2: Well over overnight it was pretty weird. Overnight.

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Speaker 1: It was weird when I woke up. I woke up

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at three am and I checked a couple of stocks

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and I was like, oh, here we go.

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Speaker 2: Well, and I'd love to tell you I have a

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crystal ball, and I do not. But it was interesting

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to see us of what amounts to flat today, you know,

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the the between the Dow, the S and P and

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the NASDAC.

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Speaker 1: Uh.

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Speaker 2: You know, you had a little north of zero, a

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little south of zero, and pretty much flat. You know,

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the markets are going to move around. There's so much

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much embedded value in the old system that if this

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omelet is going to break some of those eggs.

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Speaker 1: Uh.

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Speaker 2: And but this is what we voted for. It, it's

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what I voted for. Is and and you know every

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ever so often the financial system does need to be reset,

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and and that means that a lot of the systems

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that are grown have grown up around the status quo,

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which inevitably are parreto plus rentia plus leverage, are reset

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in order to get back to just simple parado. And

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and you know, I I I laugh because all of

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us who are arguing for this get called uh you know,

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was it? Eric Erickson I saw today on Twitter said oh,

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look it does. You scratch a scratch a populist nationalist

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and their Marxist comes out. I'm like, no, we're not.

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I don't think any of us are arguing against parreto.

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And for those of y'all who don't know, preto is

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just the idea that that eighty percent of the capital

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is generally going to be is going to be concentrated

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in about twenty percent of the people. And that just

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has to do because that's how God allocated resources both

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you know, IQ and opportunity and capabilities and talents and

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all those things. And you can't get away from that.

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Speaker 1: Even even bitcoin works that way.

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Speaker 2: It absolutely does. So you're gonna so parreto is just reality.

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But if you have parreto plus rentia, which is just

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the idea that because of my position, I can earn

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income off the position that I've created, which is what

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China and Europe has been doing to us for forever.

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Oh you're the big We're going to scrape off the top,

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so to speak. And then you add leverage on top

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of that, some of us might call a usurious situation. Well,

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now you don't just have pareto, you have these uber

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elite who who it becomes a eighty percent is in

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the of of capital and wealth is in the one percent.

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And that's not healthy. That's not good. I don't believe

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that's a Christian view of how the world should work.

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So and it wasn't the situation over the vast you know,

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the history of Christendom and so forth. So I think

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we're right to oppose that. But getting called a communist,

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those are fighting words. Pete.

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Speaker 1: Well, I mean, I think nationalist would probably be a

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better terminology for it. A nineteenth century nationalist too, I won't.

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I won't use nationalism with any terms. It might have

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been used in the twentieth century, but definitely nineteen definitely

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nineteenth century. You know, it's amazing to me how I

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had someone who promotes Austrian economics, which doesn't doesn't exist.

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Is a theory has never been played out in you know, say,

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oh Friedrich list was debunked decades ago, and I'm like,

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by who and how? Yeah, that's the way the country.

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That's the way the country. And then these are the

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same people who will be like, well, the founders were libertarians,

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but they seem to like tariffs, didn't That whole generation

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seemed to like tariffs a lot, right, And this is yeah, so.

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Speaker 2: Well, I know he's a polarizing figure among a lot

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of folks on our side. But Jarvin had a good

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piece on List just this past this past Would it

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come out Saturday morning? I recommend it, you know, if

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you can find a copy of it. Uh, it's it's

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really worth reading because it kurt you know, and I'm

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friendly with Curtis. I I uh we disagree on some things.

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Uh but but Curtis and I had very similar reading lists.

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You know, we're about to say, mate, he's a little

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bit younger than me. Uh, but you speak of the Austrians.

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Speaker 1: I was.

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Speaker 2: I was a member of the Lowig von Misas Institute

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there at Auburn Llewellen Rockwell's deal for years and years.

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But but Happa, who I think was kind of the

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pinnacle of that, uh, you know, was said that you

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had to have a national guaranteur in other words, a

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king type of figure, in order to guarantee the liberty

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that allows for freedom of arms length transactions within a

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national unit. Uh. That doesn't sound like modern libertarianism. That

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sounds more like what we're arguing for. And uh So anyway.

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Speaker 3: I I I I think that von Misis and and

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Hyak we're making more of an argument that I think

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we would also agree with that economics is a social study,

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not a hard science.

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Speaker 2: It is it is. They had scientific they had scientific

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arguments within that, but the move to making economics a

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hard science. What that does is is that that assumes

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the fungibility of human of human beings as opposed to

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each human being created in God's image. From from my standpoint,

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that's what I think, that that each person is worthy

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of of of some modicum of respect and dignity. Well,

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that's a that gets erased in a modern monetary theory.

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Post Kaynesian economics is science kind of outlook because it

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assumes freedom of international capital flows. And Nick Land has

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written fantastic stuff on this, some of which I even understand.

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I think, uh Nick's yesoteric. But you know, if you

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have if you have complete freedom of capital flows and

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the fungibility of humanity, then the destruction of individuals doesn't

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matter because it's all about aggregate wealth, you know, gd

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GDP measures and so on and so forth. And it

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ignores these these distortions in this pareto what what I

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was just talking about. It it moves towards an incredibly

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over emphasized concentration of wealth UH and and the inability

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for national leaders to have the best interest of their

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own citizens at heart, because the capital flows can escape

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the cultural norms and the UH and the jurisdiction of

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those national leaders. I've got a strange example of this,

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and I know we've kind of hit the ground running here,

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But as a hedge fund manager, I used to have

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a I still have a relationship with them, but they

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used to be my prime broker, Goldman Sachs and for

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all of Goldman's ills, and they are many, and we

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would have major problems with a lot of them. They boy,

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they can operate and uh, they used to have a

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facility exactly what we're talking about where I could They

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offered this to me, I did not take take them

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up on it. Where I could overnight have all my holdings.

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And and I'm an art I'm in volatility arbitrage, so

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I sell a lot of options and then hedge that

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risk out and a bunch of arcane stuff. And they

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had they they had the facility to take that entire

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book and sweep it to London overnight so that it

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wouldn't be subject to US overnight margin rules. And this

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is exactly what we're talking about. So so I may

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disagree with with the sovereigns that I'm under, but that's

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just escaping their jurisdiction, right, so that they can't they

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can't if it's in the nation's interests, if it's in

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the citizens interest for me not to do that, I

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could just escape it, right, So and that and and

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multiply that times every fund manager, every CFO, every whatever,

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and and you get the situation that we're in. And

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that's one of the things that's trying that we're trying

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to I say we that that the folks we support

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are trying to fix. We'll see if they're able to

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do it.

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Speaker 1: Yeah, I've gotten to the point now where really the

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support is over the money and the mostly because you know,

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we there's a certain element we want running the world

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and it's not China, and it's not you know, I

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think I think we know what I'm talking about here, Yeah,

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because I don't think you know, as we speak, net,

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Yahoo's at the White House, and you know, to me,

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that's that's more important. That that's more important in the

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long run than anything else. Is decoupling that that relationship

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right there. But yeah, what do you mean?

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Speaker 2: Yeah, but what do you think is part of it?

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Also trying to decouple America, the American Jewish population, from

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from having divided loyalties with with Israel. In other words, look,

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I get if there was a Christian Switzerland, and I'm

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just making something up, Okay, as a devout Christian, would

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I want Christian Switzerland as a kingdom or whatever to

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be prosperous? Yeah, but but I would. But if I'm

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a citizen of America, I owe my I owe my

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first loyalty to America. Right is part of this an attempt,

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I don't I'm trying to be very gracious here, an

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attempt to decouple some of those divided loyalties. Maybe that's

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a wish, but I would like to see that the

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same way as I would like to see a decoupling

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of the divided loyalties among the Hispanic community that's here,

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that that that have been here for multiple generations. I'm

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not talking about the ones who we think should be

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you know, deported, but the ones who've been here for

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multiple generations but still might be sending money home. And

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we know the ones who are here illegally are sending

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a ton of money back there. There there should be

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efforts made to decouple those divided loyalties and and and

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I think that should be necessary for the American Jewish

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community too, not to say that, hey, look, you know,

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if you if you've got a piece of your heart

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in San Francisco, so to speak, you know, in Jerusalem, okay,

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but but your chief loyalty has to be to the

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United States. And I would like to see some of that,

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a bold measure made to to decouple some of that,

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you know. And maybe that's a pipe dream, you know,

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even saying it out loud, I think it probably is.

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But i'd like to see that.

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Speaker 1: Well, I mean, I think someone tried that, you know,

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in the years of great silence. Just quoting the title

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of the book by Professor Jay Out o'pohl, Stalin recognized,

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I'm sorry.

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Speaker 2: Yeah, no, no, I was going to say, flesh that

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out a little bit.

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Speaker 1: Stalin recognized that having diaspora groups in your country was

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dangerous to his control. And I think in some I

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don't think it was one hundred percent selfish, but I

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think a lot of it was, which led him to

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basically destroy and kill half, you know, up to half

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of some of those communities, Polish, German, Lithuanian, there are others.

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Those are the biggest, and he didn't he didn't really

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address the issue with Jews in the Soviet Union until

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Israel became a nation, and then even in the beginning

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he was friendly to them, but then he turned on

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it turned on a dime, you know. And I'm not

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calling for the murder and obviously not the murder of

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the Osperg Group Center in the United States, but you're

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always going to have that problem, you know. And I

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think I think I shared a I shared a video

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with you, and I can't even remember the gentleman's name

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right now, but you know, he made the point that

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if you have a multicultural society such as Russia. Russia

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is is multicultural. I mean if people understand the Chechen

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situation there when.

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Speaker 2: Oh it's seven, when it's seventeen different ethnic groups. Yeah,

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within and that's within modern Russia.

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Speaker 1: Yeah right, you understand that basically prosperity as we know it,

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which is just basically financialization that we don't have manufacturing

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here anymore, we don't really, it's all financialization goes on

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the back burner and security becomes the most important thing.

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So yeah, I think that's the problem. I think that's

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where we're at. I think that's the problem that we're

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facing right now is we want to get the money.

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We would love to see the money situation be fixed

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after over a century of of insanity. But we know

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what's more important? Is it security? When you have you

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basically have foreign armies on, I mean armies that could

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mobilize against you, against the population. So what do you

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what do you do? You know it's I had Clay

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Martin on here, and you know, Clay Martin was a

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Tier one operator in the military. He said, look, we

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got we have cells here that could be you know,

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they could just go off in a second and then

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we're in the middle. We're in the middle of a war.

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So this well, yeah, getting.

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Speaker 2: Money, Well it's going to say what uh, you know,

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the it wasn't just Central America, you know, Mexicans and

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Central Americans and South Americans that were pouring over the border.

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Many many Chinese nationals were coming in.

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Speaker 1: There's two hundred and fifty there's two hundred and fifty

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thousand Chinese citizens in United States universities right now.

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Speaker 2: And that's just documented. Yeah, and untold numbers were coming

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in undocumented. And that's.

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Speaker 1: Eighty percent of the Chinese. Eighty percent of ethnic Chinese

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that are caught spying in the United States are not

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first generation and are not are not here on a

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visa or a student visa. There a second generation.

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Speaker 2: I didn't I didn't know that stat that's chilling. Two things.

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Number one, Pete just referred to a video he sent me.

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It's well worth watching how Trump is reshaping the world

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with Fearah's modad. He's on Peter McCormick show. Peter will

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drive you crazy if you watch this. But fear Us,

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who's this, Who's a Elebanese Christian thinker. I don't know

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what he does for a living, but this was one

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of the more impressive videos. I couldn't. I had to

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finally stop watching it because we were about to start.

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I got about two thirds of the way through it.

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Absolutely fantastic.

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Speaker 1: And then.

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Speaker 2: Secondly you mentioned, you know, the the Russians. One of

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the one of the real black pilling moments when you're

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studying World War two and you're coming from accepting kind

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of the American post war consensus telling of World War

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two is when you come upon the Caton massacre and

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h and you see what you know in that the

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Soviets blame the Germans for this massive mask or twenty

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two thousand Polish citizens. I don't know the number of

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those one polls.

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Speaker 1: It was done. It was done with bullets too, Yeah,

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it was done. It was done with.

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Speaker 2: Don't I don't know the number of those polls, what

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percentage or Jews. I would assume a large percentage. And

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that was and this is not some denial conspiracy theory.

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This is something the Soviets later admitted to I think

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in like way later admitted to nineteen I'd have to

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look it up.

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Speaker 1: I think it was in when the archives, when the

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archives opened in the nineties.

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Speaker 2: In the nineties. I think that's exactly right, Pete. But

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you go, you know, and Kiton is spelled ka t

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y n. You can go read about it yourself, and

305
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it is you know, it's the first place I take

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folks who who when I'm talking about, you know, not

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even revisionist history, because this is history that's admitted to

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by everyone. I say, hey, look, you know, just consider

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the sources on some of this stuff and go look

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up to Kate. And it's one of the first things

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I send them to. Uh. Our buddy Darryl Cooper is

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the first one to tell me about it. I didn't

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know about it. I mean, this is just a couple

314
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of years ago, and and and Darryl's like, go read

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about this. You know, I kind of had my eyes

316
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peeled back anyway, back to back to the monetary system.

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You know. Ever so often the rules, the rules get

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changed out of certain necessities we would love. I know,

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it's it's it's all. It's it's it's the draw it's

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My temptation is to be an ideologue as opposed to

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love my fellow, my neighbor. Right, I want to find

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an ideology that answers all questions as opposed to what

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you know. For me, again as a devout Christian, the

324
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Bible says search for wisdom, and that's way more complicated,

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and that's a lifelong project. And you know, instead, I

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want to find some kind of simple set of rules

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that I can just code, hang everything on, that explain everything.

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And that's not reality. The reality is is it takes

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wisdom and ever so and that means ever so often

330
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you've got to tweak the system and change the rules.

331
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You know, Nixon, You know a lot of on our

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side say the worst thing Nixon did was take us

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off of the gold standard. Well, it was really fdr

334
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that took us off the gold standard way back, and

335
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he had to do that in order to finance his

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major social safety net three letter revolution that he did

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his Imperial presidency couldn't have been done under a raw

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gold standard. And Nixon and the system that came after that,

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Bretton Woods had had shoehorn Nixon into a spot to

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where we could not we we we we couldn't stay

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on the last vestiges of it without basically defaulting on

342
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some things. And so it really wasn't Nixon's deal. Nixon

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was you know, I don't agree with everything he did.

344
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Wage and price control is kind of weird, but but

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he was a rightis easily the most right, the most

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right leaning president we've had until you know, it's funny

347
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because Trump is really I don't know what Trump is.

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A populist he got, but he governs far to the

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right right. But Nixon philosophically was was a right anyway

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when he took us off the gold standard, you know that,

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and and and kind of put torch to Breton Woods

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seventy three to seventy four, which is things moved a

353
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lot slower back then, or was a massive bear market

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that really took forty to forty five percent of the

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wealth out of the investment class. Well, but it also

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set up the ridiculous. Without that, you don't get the

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boom of the eighties and nineties and so on and

358
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so forth. And we was the boom of the eighties

359
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and nineties, perfect no, because a lot of people didn't

360
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participate in it, and we could. You know, you've all

361
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seen the graphs of how you know, certain GDP goes

362
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straight up, but with the working class kind of levels

363
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out after seventy one seventy two, so in that timeframe.

364
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But anyway, these these these reorderings of the economics system

365
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are going to happen, whether you like it or not.

366
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Part of what's happening now that Trump, I think Trump

367
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and I think his advisors absolutely see, is that the

368
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US Navy is no longer going to be able to

369
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police the trade the trades lanes of the world anymore.

370
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Because shoot, just was it today or yesterday? The oh uh,

371
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the copperhead underwater kamikaze drones were announced by andreil uh

372
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and and other and China's working on the same thing.

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The and we all know the advances in the drones

374
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is all that means is I mean, look at the

375
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Hooties have held up the number three UH commerce zone

376
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in the entire world. The hoodies, I mean, the the

377
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sect of you mini's. And that's just simply because it's

378
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a lot cheaper to build drones and short short range

379
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ballistic missiles than it used to be. And so the

380
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calculus of being able to police this world trade system

381
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isn't going to be possible for much longer. And so

382
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you're going to see the a regionalization of spheres of

383
00:26:19,200 --> 00:26:22,720
influence reality is going to take hold. Whether we like

384
00:26:22,759 --> 00:26:27,960
it or not, that's just coming because the way it's

385
00:26:28,079 --> 00:26:32,480
just going to be easy to blow up ships, easy cheap.

386
00:26:34,200 --> 00:26:37,680
And so if that's the case, then you're going to

387
00:26:37,799 --> 00:26:42,359
have to onshore. You're going to have to incentivize on shoring.

388
00:26:43,079 --> 00:26:46,279
Whether you believe in all the things that we believe

389
00:26:46,359 --> 00:26:49,119
in as a people, of the importance of citizenship and

390
00:26:49,160 --> 00:26:52,920
all that, Hey, that's a bonus. It's just the reality

391
00:26:52,920 --> 00:26:54,920
of the world is you're going to have to shorten

392
00:26:54,960 --> 00:27:00,880
supply chains, make them much more agile and and local

393
00:27:01,640 --> 00:27:03,440
because you're not going to be able to have long

394
00:27:03,880 --> 00:27:08,319
supply chains. And that's beyond the concerns of hey, do

395
00:27:08,359 --> 00:27:12,319
you really want your your global competitor to make all

396
00:27:12,319 --> 00:27:16,799
your missine and make all your industrial products. Uh, I'm

397
00:27:17,400 --> 00:27:21,039
you know, those are even bigger, more philosophical questions.

398
00:27:21,640 --> 00:27:21,799
Speaker 1: Uh.

399
00:27:21,839 --> 00:27:24,039
Speaker 2: And we're on one side of that. But but the

400
00:27:24,119 --> 00:27:28,200
reality of just how conflict is going to be waged

401
00:27:28,640 --> 00:27:31,880
is driving this as well. And that's that's why Trump,

402
00:27:32,119 --> 00:27:35,039
I think is also pushing towards the Greenland and the

403
00:27:35,079 --> 00:27:38,519
Canadian thing is is that you're going to have to

404
00:27:38,559 --> 00:27:41,480
increase your You're going to have to increase your coastline

405
00:27:41,880 --> 00:27:47,680
in order to have in order to have regional hegemony. Uh,

406
00:27:47,880 --> 00:27:51,400
you know, and that's a that that will be a

407
00:27:51,480 --> 00:27:55,599
more decades long process perhaps, But but all of these

408
00:27:55,680 --> 00:27:59,119
realities are changing how the world has worked. It's like

409
00:27:59,160 --> 00:28:02,079
I'm a pilot. I tried, I was a f sixteen

410
00:28:02,680 --> 00:28:07,119
pilot candidate. So I'm really romanced by a guy wearing

411
00:28:07,119 --> 00:28:10,559
a helmet sitting in a cockpit shooting down bad guys.

412
00:28:10,960 --> 00:28:15,039
But that reality is done. I mean that the last

413
00:28:15,200 --> 00:28:17,480
man fighters. We're going to see the end of that.

414
00:28:18,079 --> 00:28:21,319
Maybe not in my lifetime, but soon after I'm fifty eight.

415
00:28:21,440 --> 00:28:25,240
So let's assume I lived a eighty. You know, by

416
00:28:25,279 --> 00:28:30,559
the time i'm eighty, that world will be over. So

417
00:28:31,440 --> 00:28:34,400
and the same thing with how naval you know, how

418
00:28:34,519 --> 00:28:39,279
naval security is handled. So I think a lot of

419
00:28:39,279 --> 00:28:43,359
this is driven just by reality. And you can either

420
00:28:44,359 --> 00:28:48,240
be the faction of the real or you can live

421
00:28:48,279 --> 00:28:51,400
in this fake world of ideology. As you know what

422
00:28:51,440 --> 00:28:54,759
Plato would say, living in the cave. And shadows don't

423
00:28:54,759 --> 00:29:00,640
make very good fighters, Shadows don't make for a good economy.

424
00:29:00,759 --> 00:29:03,839
Speaker 1: You're talking about bringing manufacturing home, which is basically what

425
00:29:03,839 --> 00:29:07,200
Trump's been talking about. What you know what a lot

426
00:29:07,240 --> 00:29:10,759
of the people that you know, who we're friends with

427
00:29:11,119 --> 00:29:13,440
have been talking about. It's something. It's one of the

428
00:29:13,480 --> 00:29:18,319
only ways that that you can truly be a sovereign country.

429
00:29:19,440 --> 00:29:24,559
I forget, I forget who said it on somebody said

430
00:29:24,559 --> 00:29:28,279
it recently and basically Lutwok laid it out in his

431
00:29:28,319 --> 00:29:33,200
book Coupdettas is that if you do not manufacture your

432
00:29:33,319 --> 00:29:37,599
own you know, your own weapons, you're a client state

433
00:29:37,640 --> 00:29:41,039
of somebody else. And absolutely, you know, if we don't

434
00:29:41,319 --> 00:29:44,799
if we don't manufacture our own prescription drugs, if we

435
00:29:44,799 --> 00:29:49,640
don't manufacture our own you know, like Thomas was talking

436
00:29:49,680 --> 00:29:51,799
about the other day on a on a show we did,

437
00:29:52,039 --> 00:29:53,960
you know, China has a city where all they do

438
00:29:54,079 --> 00:29:57,160
is apples. They have a city where all they do

439
00:29:57,200 --> 00:30:00,720
is previe socks. Yeah, and so you you have these,

440
00:30:02,240 --> 00:30:04,519
you have all of these things that are being made

441
00:30:04,680 --> 00:30:11,880
in other places. Chips, nothing can nothing can survive, nothing

442
00:30:11,880 --> 00:30:15,519
can operate without a chip nowadays, No, none of this technology.

443
00:30:15,559 --> 00:30:17,519
All that's made in Taiwan.

444
00:30:17,640 --> 00:30:19,799
Speaker 2: Thaw yeah, Taiwan semiconductor.

445
00:30:20,960 --> 00:30:25,000
Speaker 1: Right. So basically you're not a sovereign nation if you

446
00:30:25,039 --> 00:30:29,079
don't do this. So with that out of the way.

447
00:30:29,680 --> 00:30:32,319
Can you talk a little bit about how how people

448
00:30:32,359 --> 00:30:34,160
make money in this country? And you know, we talked

449
00:30:34,200 --> 00:30:36,240
about it, talked about it a little bit texting the

450
00:30:36,319 --> 00:30:40,119
other day. It's all financialization, it is all. And you

451
00:30:40,119 --> 00:30:44,319
know you mentioned usury earlier. It's all it's all basically

452
00:30:44,440 --> 00:30:49,680
manipulation of money. And yeah, just you go off on that.

453
00:30:50,640 --> 00:30:59,279
Speaker 2: So huh, the the you know, people live and consume stuff.

454
00:31:00,599 --> 00:31:03,599
I know, this seems very basic. One thing we do

455
00:31:03,720 --> 00:31:08,880
have going for us is we have the world's most

456
00:31:09,039 --> 00:31:13,000
fertile land and a river system that allows us to

457
00:31:13,400 --> 00:31:18,839
transport that around very easily. But what we don't have

458
00:31:18,960 --> 00:31:23,799
anymore is we don't We make very little steel. But

459
00:31:23,920 --> 00:31:27,160
even worse if we there was a great video going

460
00:31:27,160 --> 00:31:31,920
around last week. We don't make the machines, we don't

461
00:31:31,960 --> 00:31:34,519
make the parts in order. Let's say you and I

462
00:31:34,799 --> 00:31:38,400
Pete wanted to go build a steel mill, either in

463
00:31:38,440 --> 00:31:42,519
Alabama or out here south of Dallas. Well, we would

464
00:31:42,559 --> 00:31:46,480
have to go to Germany or I'm trying to remember where,

465
00:31:47,480 --> 00:31:50,319
maybe South Korea. I'm trying to remember the places that

466
00:31:50,480 --> 00:31:55,079
still build these massive smelting things that allow you to

467
00:31:55,720 --> 00:31:59,200
with tremendous heat, take the ore, and make steel with

468
00:32:01,240 --> 00:32:04,440
We don't even make that stuff. So you're talking about

469
00:32:04,480 --> 00:32:11,079
a multiple steps where we're dependent upon other nations in

470
00:32:11,240 --> 00:32:15,000
order to even make So let's say I don't think

471
00:32:15,039 --> 00:32:16,880
this is going to happen, by the way, but let's

472
00:32:16,880 --> 00:32:21,480
say China just declared war on us and we were

473
00:32:21,480 --> 00:32:23,160
going to go. First of all, we wouldn't be having

474
00:32:23,160 --> 00:32:25,759
this conversation because they could probably turn off our lights

475
00:32:25,880 --> 00:32:28,920
in about thirty minutes, and we could probably do somewhat

476
00:32:28,960 --> 00:32:33,039
similar although they have a national firewall and we do not,

477
00:32:33,279 --> 00:32:36,359
so it might be a little harder for us. But

478
00:32:36,759 --> 00:32:38,279
let's say we went to war and we wanted to

479
00:32:38,359 --> 00:32:41,319
massively mobilize and build a bunch of stuff. Well, you

480
00:32:41,359 --> 00:32:47,880
know what, that would be difficult. After about we ran

481
00:32:47,920 --> 00:32:52,079
out of a certain amount of inventory that we have.

482
00:32:53,319 --> 00:32:55,880
We couldn't do the World War two thing where every

483
00:32:56,200 --> 00:32:59,559
auto plant and every you know, we just made eight

484
00:32:59,640 --> 00:33:03,599
thousand and long range bombers and tanks and or whatever

485
00:33:03,599 --> 00:33:07,519
it does. We wanted to build, but you know, big drones,

486
00:33:08,799 --> 00:33:10,839
we couldn't do it after a while. And then you

487
00:33:10,880 --> 00:33:14,440
mentioned medicine. We don't make the vast majority of our

488
00:33:14,640 --> 00:33:18,920
of our medicines. That's a real problem. We're just subject

489
00:33:19,759 --> 00:33:25,559
so so you know in the in the issue of

490
00:33:25,559 --> 00:33:31,039
of of making money, you how how we do things today.

491
00:33:31,079 --> 00:33:35,680
So this really we're subject to what's called Dutch disease.

492
00:33:35,920 --> 00:33:38,720
And this this is kind of our cane. But but

493
00:33:38,799 --> 00:33:41,720
I'll try to make it very simple. It's named after

494
00:33:42,759 --> 00:33:47,039
obviously the Holland uh in the late sixties I believe

495
00:33:47,079 --> 00:33:50,839
it was, might have been early seventies, some territorial waters

496
00:33:50,839 --> 00:33:53,799
of halland they found all kinds of natural gas reserves

497
00:33:54,960 --> 00:33:59,680
and within a very short amount of time, the entire

498
00:34:00,079 --> 00:34:05,799
economy of Holland, which was traditionally farming. You know, traditionally

499
00:34:05,880 --> 00:34:09,519
Europe was part of the bread basket of Europe. Was

500
00:34:09,519 --> 00:34:15,440
was the was Dutch farmers, but the vast majority of

501
00:34:17,199 --> 00:34:24,440
the Dutch economy became all about natural gas. And uh

502
00:34:24,840 --> 00:34:28,440
so they're smartest people. Instead of going into all these

503
00:34:28,480 --> 00:34:33,519
diverse ways that the Dutch provided for themselves, all went

504
00:34:33,559 --> 00:34:39,159
into natural gas. And so the Dutch disease was this

505
00:34:39,159 --> 00:34:43,360
this monster that took over the entirety of the Dutch economy.

506
00:34:43,719 --> 00:34:45,880
And then when the natural gas reserves kind of went up,

507
00:34:45,880 --> 00:34:49,039
they were in trouble. You know, and and Holland had

508
00:34:49,039 --> 00:34:55,320
a real problem getting out of that. Well, the US

509
00:34:55,400 --> 00:35:00,159
has a similar problem. And what's what? And yes, we

510
00:35:00,199 --> 00:35:02,559
produce natural gas, and yes we produce a ton of oil,

511
00:35:02,599 --> 00:35:06,599
especially in my state. I'm in Texas. But the real,

512
00:35:07,159 --> 00:35:11,199
the real export of the United States is the dollar itself.

513
00:35:12,440 --> 00:35:15,679
And so what does that mean? It means that all

514
00:35:15,760 --> 00:35:20,039
the smart people go into finance, not all, but a

515
00:35:20,199 --> 00:35:23,440
vast majority. What are the instead of going in and

516
00:35:24,280 --> 00:35:29,599
being boy, the best at robotics or the best at

517
00:35:30,119 --> 00:35:36,000
at producing uh, you know, the best chip designers or

518
00:35:36,039 --> 00:35:40,480
the best whatever it is. Uh, the smartest people go

519
00:35:40,800 --> 00:35:44,800
and become hedge fund managers or hedge fund trading analysts

520
00:35:45,519 --> 00:35:49,360
and uh and so and I'm pointed at myself, you know,

521
00:35:49,480 --> 00:35:51,559
I mean, I'm part of this. And what you do

522
00:35:51,719 --> 00:35:54,440
is you figure out ways. I mean when I was

523
00:35:54,639 --> 00:35:56,360
when I came out of grad school and I went

524
00:35:56,400 --> 00:35:59,719
to work for my first hedge fund, my entire job

525
00:35:59,880 --> 00:36:04,760
was to look for companies that were producing cool stuff.

526
00:36:05,679 --> 00:36:07,800
I would love to tell you that was the case. No,

527
00:36:07,920 --> 00:36:11,800
I went and looked for money that was laying around

528
00:36:12,079 --> 00:36:17,000
in inefficiencies so that I could arbitrage that out and

529
00:36:17,199 --> 00:36:22,760
lever up the arbitrage opportunities. And so I mean, you know,

530
00:36:23,519 --> 00:36:27,800
treasury bonds, for instance, I wrote, I wrote black box models.

531
00:36:27,840 --> 00:36:31,079
This is what this was used to be called. And

532
00:36:31,480 --> 00:36:34,320
there were tremendous inefficiencies in the way treasury bond futures

533
00:36:34,320 --> 00:36:37,280
were traded because the this was before green Span and

534
00:36:37,320 --> 00:36:40,880
the FED really controlled that market. And so I mean

535
00:36:40,920 --> 00:36:43,480
I had a black box model that was generating for

536
00:36:43,559 --> 00:36:48,320
every contract of risk that we put on was producing

537
00:36:49,199 --> 00:36:51,960
you know, and these were ten thousand dollars denominated contracts

538
00:36:51,960 --> 00:36:54,360
were producing two thousand dollars of income. So you can

539
00:36:54,440 --> 00:36:56,760
do that math on what a year of that would be.

540
00:36:56,880 --> 00:37:01,039
And because treasuries, because futures only hire a small amount

541
00:37:01,039 --> 00:37:04,480
of capital, they have imbued leverage. Well, we could lever that.

542
00:37:04,719 --> 00:37:07,440
I mean I was able to I was able to

543
00:37:07,440 --> 00:37:11,039
trade up my own personal account enough to where I

544
00:37:11,039 --> 00:37:14,800
could retire for a little bit and go do some

545
00:37:14,800 --> 00:37:17,800
fun things and then open up my own hedge fund job.

546
00:37:18,079 --> 00:37:23,559
Now the point is now multiply that across an entire economy,

547
00:37:23,719 --> 00:37:29,199
and now you have and by the way, futures and

548
00:37:29,280 --> 00:37:35,599
derivatives have a role in allowing people to do insurance

549
00:37:35,719 --> 00:37:39,360
and protect themselves and all these things, but you can't

550
00:37:39,360 --> 00:37:42,760
have an entire economy built around that. You saw the

551
00:37:42,800 --> 00:37:47,239
same thing happen with high frequency trading of stocks, was

552
00:37:47,280 --> 00:37:50,599
the same kind of thing to where the bid ask spread.

553
00:37:50,800 --> 00:37:56,280
That was a way for specialists in stocks to manage

554
00:37:56,320 --> 00:37:59,480
the risk of the entire market and provide order. Got

555
00:37:59,519 --> 00:38:02,400
traded way by these computers that would bounce those trades

556
00:38:02,440 --> 00:38:05,039
back and forth one hundred times a second. Well maybe

557
00:38:05,079 --> 00:38:08,679
not one hundred, but but you know, very very quickly,

558
00:38:09,199 --> 00:38:13,239
and because there was no tax on those trades, basically

559
00:38:13,400 --> 00:38:18,440
ran the specialists out of business. In an earlier version

560
00:38:18,800 --> 00:38:23,760
of high frequency trading, basically the that's what led to

561
00:38:23,760 --> 00:38:25,840
the flash crash. When that got turned off, then you

562
00:38:25,880 --> 00:38:29,719
saw this cascading event. So the point is is the

563
00:38:29,840 --> 00:38:34,280
smart in the financialization you begin to look for not

564
00:38:34,440 --> 00:38:38,480
ways to produce things, but ways to because you have

565
00:38:38,639 --> 00:38:43,039
this immense tool called the US dollar, the ways to

566
00:38:43,880 --> 00:38:50,039
lever these small inefficiencies to thirty forty x in order

567
00:38:50,480 --> 00:38:53,800
to basically just suck dollars out of the system and

568
00:38:53,840 --> 00:38:57,440
produce huge returns. And that really isn't You're not really

569
00:38:57,440 --> 00:38:59,519
making I mean, I'm making money for my investors. But

570
00:38:59,559 --> 00:39:03,719
you're really not making anything. Again, I'm pointing at myself here.

571
00:39:03,880 --> 00:39:06,400
Now I don't do a whole lot. I don't do

572
00:39:06,639 --> 00:39:10,639
that as much anymore. I'm do a little bit different

573
00:39:10,760 --> 00:39:16,440
version of this. So how does that, how does that?

574
00:39:17,199 --> 00:39:21,079
How does that Dutch disease in dollar terms? How does

575
00:39:21,119 --> 00:39:29,239
that explain itself over an entire an entire ecosystem. Well, this,

576
00:39:29,239 --> 00:39:35,679
this creates the dollars reserve status because it is in

577
00:39:35,719 --> 00:39:39,920
and of itself, this tool that can be exported via

578
00:39:40,039 --> 00:39:46,280
euro dollars across economies. So in Europe they create dollars

579
00:39:46,280 --> 00:39:48,760
out of thin air called euro dollars and do the

580
00:39:48,960 --> 00:39:56,239
same exact thing. Well, where does so that incentivizes the

581
00:39:56,400 --> 00:40:03,880
US government to print beyond So so so we spend

582
00:40:03,920 --> 00:40:08,119
way more than we take in in taxes, and we

583
00:40:08,119 --> 00:40:12,079
we export that inflation. Normally you would just have to

584
00:40:12,079 --> 00:40:14,800
print those dollars to make up the difference. You print

585
00:40:14,800 --> 00:40:18,800
those dollars, those dollars go stay on our economy, and

586
00:40:18,880 --> 00:40:22,400
now we have massive inflation because it's twenty percent, it's

587
00:40:22,400 --> 00:40:25,920
a it's a vast amount that that that is goes

588
00:40:25,960 --> 00:40:29,440
above and beyond what we take in. We spend. Well,

589
00:40:29,719 --> 00:40:36,519
if you have this reserve Dutch disease currency. The rest

590
00:40:36,559 --> 00:40:39,960
of the world soaks that up, soaks up those extra

591
00:40:40,039 --> 00:40:43,960
dollars by because they purchase the treasury bonds that that's

592
00:40:44,000 --> 00:40:48,400
made up, and we don't have big inflation. Well, the

593
00:40:48,480 --> 00:40:52,960
problem is eventually that's got to come home. And you

594
00:40:53,039 --> 00:40:59,760
saw when the when when Putin invaded UH Ukraine and

595
00:40:59,760 --> 00:41:04,239
by Iden enacted all these all these uh you know,

596
00:41:04,599 --> 00:41:11,840
basically UH sanctions against against Russia that embargoed those dollars.

597
00:41:12,480 --> 00:41:15,440
And part of the inflation problem that we had was

598
00:41:15,519 --> 00:41:18,880
those dollars didn't have nearly as near as many places

599
00:41:18,920 --> 00:41:22,440
to go to get soaked up the sponge. We we

600
00:41:22,519 --> 00:41:25,960
basically cut off a big piece of the sponge, and

601
00:41:26,079 --> 00:41:29,039
so those dollars had to stay here, and we had inflation.

602
00:41:29,159 --> 00:41:31,760
And who does that hurt? Does that hurt the the

603
00:41:31,840 --> 00:41:35,880
investment class. No, that hurts the average person who now

604
00:41:36,000 --> 00:41:38,559
is paying way more for eggs, or way more for

605
00:41:38,599 --> 00:41:41,639
their fast food, or way more for uh you know,

606
00:41:42,440 --> 00:41:45,880
rents went way up. So anyway, this is a long

607
00:41:45,960 --> 00:41:50,239
way of saying that in the modern world of of

608
00:41:50,239 --> 00:41:55,840
of financialization, it's just a way for it incentivizes the

609
00:41:55,960 --> 00:41:59,519
US government to do things that are against the interests

610
00:41:59,559 --> 00:42:05,920
of its medicines. Number one, in printing, in debasing their savings,

611
00:42:05,960 --> 00:42:10,119
those savings, that that that that debasement is just a

612
00:42:10,159 --> 00:42:13,760
transfer payment to the elite because it tends to inflate

613
00:42:13,840 --> 00:42:17,719
the value of assets. And then when you reverse that,

614
00:42:17,880 --> 00:42:20,159
which is what they're trying to do, you see those

615
00:42:20,199 --> 00:42:26,320
assets come down, and it's it's just a mess, but

616
00:42:26,360 --> 00:42:29,000
you've got to fix it somehow. Anyway. I've been talking

617
00:42:29,039 --> 00:42:33,599
for way too long. It's a it's a complex arcane system.

618
00:42:34,280 --> 00:42:38,440
But the main things to remember are if the dollar

619
00:42:38,679 --> 00:42:44,719
is our chief export, and it is, then the entire

620
00:42:44,840 --> 00:42:48,280
economy is going to be dominated by that export. And

621
00:42:48,320 --> 00:42:52,199
the attempt that is trying to be done here is

622
00:42:52,320 --> 00:42:56,199
can we have a balanced It's okay to have a

623
00:42:56,239 --> 00:43:02,000
strong currency, or at least a fair valued currency, but

624
00:43:02,119 --> 00:43:05,440
that needs to be balanced by making stuff so that

625
00:43:05,679 --> 00:43:11,320
our entire economy isn't isn't doesn't create these weird incentives

626
00:43:12,159 --> 00:43:15,519
to prop that up. So can we can we have

627
00:43:15,599 --> 00:43:23,079
a diversified economy of exports so that everything isn't it

628
00:43:23,199 --> 00:43:27,039
isn't distorted by this Dutch disease. I just wrote on

629
00:43:27,039 --> 00:43:29,480
this If you go to my substack, the Eyes of Abilities,

630
00:43:29,599 --> 00:43:33,199
Ron Dodson at sub Substack. You can. I wrote an

631
00:43:33,239 --> 00:43:38,000
article this weekend about this about how this works if

632
00:43:38,000 --> 00:43:41,440
you really want to get you know, ourcane about things.

633
00:43:42,760 --> 00:43:45,320
But that's what they're trying to fix. And it will

634
00:43:45,679 --> 00:43:52,119
create habit because all of these structures are built around this,

635
00:43:52,119 --> 00:43:55,880
this system. But it's coming. It's going to come to

636
00:43:55,960 --> 00:43:57,159
an end one way or the other.

637
00:44:00,400 --> 00:44:02,440
Speaker 1: Well, a lot of people want this to happen overnight,

638
00:44:02,480 --> 00:44:05,880
and it's impossible, you know. I think about we talked

639
00:44:05,880 --> 00:44:11,679
about like the Mesa's Institute and libertarianism, and one of

640
00:44:11,719 --> 00:44:16,199
the things that they really promote is entrepreneurship. One of

641
00:44:16,199 --> 00:44:19,280
the books that I read on my show was zero

642
00:44:19,360 --> 00:44:23,639
to One by Peter Teel and just be yeah, just

643
00:44:23,679 --> 00:44:28,239
because it's whatever you think of Peter Teel, it's a

644
00:44:28,239 --> 00:44:32,400
different way of thinking about things. So you push, you

645
00:44:32,480 --> 00:44:36,679
talk about entrepreneurship, you talk about people who can create something,

646
00:44:36,679 --> 00:44:39,199
come up with a new idea. Okay, and that's great

647
00:44:40,280 --> 00:44:44,199
and it may even benefit us, but it's being built

648
00:44:44,199 --> 00:44:49,360
in India, it's being built in China, it's being built.

649
00:44:49,360 --> 00:44:55,360
So this entrepreneurship, sure, it may make our lives easier.

650
00:44:55,480 --> 00:44:58,159
It may make a couple people wealthy. We may even

651
00:44:58,159 --> 00:45:00,480
become wealthy if we get in early enough the stock

652
00:45:00,639 --> 00:45:03,159
or you know, we we do we do well with it.

653
00:45:04,400 --> 00:45:07,679
But it's still not strengthening the country. It's still not

654
00:45:07,760 --> 00:45:12,440
strengthening the people because it's not being built here. And

655
00:45:12,760 --> 00:45:16,840
that's that's the biggest problem I have with like Austrian

656
00:45:16,840 --> 00:45:21,840
economics and anarcho capitalism things like that. It's globalism. It's

657
00:45:22,039 --> 00:45:26,920
I'm going to you know, labor, labor becomes now just

658
00:45:26,960 --> 00:45:32,519
becomes another another thing to negotiate. And if if you

659
00:45:32,519 --> 00:45:34,440
can get cheaper labor somewhere else, you do it. If

660
00:45:34,440 --> 00:45:37,880
you can import cheaper labor, you do it. Or if

661
00:45:38,079 --> 00:45:41,079
somebody else in another country will do do the labor cheaper,

662
00:45:41,119 --> 00:45:43,159
and even with shipping it back. Is I mean, it's

663
00:45:43,199 --> 00:45:47,599
just basically globalism. You cannot have you can't have a

664
00:45:47,639 --> 00:45:52,159
strong country because your country then just survive, is just

665
00:45:52,199 --> 00:45:57,559
surviving on this financialization because because you may be benefiting

666
00:45:57,599 --> 00:46:00,599
by using an iPhone, which I mean, where the hell

667
00:46:00,679 --> 00:46:06,920
was this made? Yeah? But okay ching dou yeah, okay,

668
00:46:07,119 --> 00:46:13,880
So how how does that benefit our economy other than financialization?

669
00:46:14,079 --> 00:46:17,519
Other than it being all about money, which it can

670
00:46:17,559 --> 00:46:25,719
be printed into oblivion, can be arbitraged into ali. I mean, yeah,

671
00:46:26,000 --> 00:46:29,960
well what does an what does an entrepreneur mean? If

672
00:46:31,800 --> 00:46:38,079
it's it only benefits you as a consumer and not

673
00:46:38,199 --> 00:46:42,400
as somebody who not as a society, not as a people,

674
00:46:42,599 --> 00:46:47,000
not as a vulcan who benefits from also manufacturing it.

675
00:46:48,079 --> 00:46:55,000
Speaker 2: Well, think about if we in the in the in

676
00:46:55,119 --> 00:47:00,519
the old way of doing things, the the the in

677
00:47:01,199 --> 00:47:06,599
let's say, in the in in Royal England, back in

678
00:47:06,679 --> 00:47:10,800
the old days of of where there was royalty and

679
00:47:11,519 --> 00:47:15,960
uh and because they were landed and people work the

680
00:47:16,079 --> 00:47:24,159
land and those those oh even I think the video

681
00:47:24,239 --> 00:47:27,719
we mentioned talked about this a little bit where the

682
00:47:27,800 --> 00:47:32,960
people were loyal to the lords because of this nobless

683
00:47:32,960 --> 00:47:35,639
a belief that they owed it to the people who

684
00:47:35,760 --> 00:47:39,079
surround who were around them in their village and their towns.

685
00:47:39,639 --> 00:47:41,920
They owed it to make sure they were taken care of.

686
00:47:42,320 --> 00:47:44,639
And in response, I mean, this sounds very hobbsy in

687
00:47:44,760 --> 00:47:48,440
but that doesn't make it untrue. Uh and as a

688
00:47:49,039 --> 00:47:52,320
as a as a response, they were loyal when conflict

689
00:47:52,440 --> 00:47:57,519
inevitably came. And but but what we've lost is this

690
00:47:57,639 --> 00:48:03,000
idea of nobless a beliefe. So all that means is

691
00:48:03,000 --> 00:48:07,280
is that if I am, if I am wealthy, I

692
00:48:07,480 --> 00:48:13,599
owe it to my community to make sure my community

693
00:48:14,000 --> 00:48:19,079
is blessed, is able to feed themselves, is able, And

694
00:48:19,760 --> 00:48:25,400
that is really only possible in an enclosed and I'm

695
00:48:25,480 --> 00:48:28,320
not completely enclosed. I don't think anybody's trying to do

696
00:48:28,400 --> 00:48:32,679
away with completely do away with trade. But if it's

697
00:48:34,119 --> 00:48:38,519
if suddenly I don't do international investment. But let's say

698
00:48:39,039 --> 00:48:46,199
I could hire a thousand Indians in Beau Paul to

699
00:48:46,280 --> 00:48:51,159
do something cheaper than a hundred of the people who

700
00:48:51,239 --> 00:48:55,760
live around me, because all I cared about was arrow

701
00:48:55,800 --> 00:49:03,559
going up. Then I've considered the that's somewhat evil. You

702
00:49:03,559 --> 00:49:06,840
know that I wouldn't care first for the people, that

703
00:49:06,920 --> 00:49:09,960
I wouldn't take a lesser return to care for the

704
00:49:10,000 --> 00:49:15,519
people around me than somebody an ocean and two continents away.

705
00:49:16,239 --> 00:49:20,239
I mean, there's something very perverse about that. But that's

706
00:49:20,400 --> 00:49:27,039
what frictionless capital And again, remember capitalism is a term

707
00:49:27,119 --> 00:49:32,800
of Marx. What we believe as traditional rightist, you know,

708
00:49:32,920 --> 00:49:35,519
is Christians is the idea of you know, Jesus talked

709
00:49:35,519 --> 00:49:38,039
about one another and you know, loving one another and

710
00:49:38,079 --> 00:49:41,119
there's there's part of that that's embedded in the free

711
00:49:41,239 --> 00:49:45,800
arms length transaction. Hey, hey, Pete, I have I'm not

712
00:49:46,000 --> 00:49:48,519
using this fridge over here, and I see I haven't

713
00:49:48,519 --> 00:49:50,519
seen you use your leaf blower in a while. Hey,

714
00:49:50,559 --> 00:49:53,000
you want to swap, wouldn't that'd be cool? We're both

715
00:49:53,079 --> 00:49:55,880
better off and we both say thank you, and we

716
00:49:55,920 --> 00:49:58,519
are both blessed by that. Or I go down to

717
00:49:58,559 --> 00:50:02,599
the local, you know, hardware store that my friend Frank

718
00:50:02,920 --> 00:50:05,320
owns and runs, and I buy this. I go to

719
00:50:05,320 --> 00:50:07,480
buy something. He goes, hey, man, don't buy that. Buy this.

720
00:50:07,880 --> 00:50:10,000
I know it's a little more expensive, but buy this

721
00:50:10,000 --> 00:50:12,239
this American made tool. It will let you'll give it

722
00:50:12,239 --> 00:50:17,719
to your grandkids. Oh thanks, thanks Frank. That's what we

723
00:50:18,519 --> 00:50:21,360
believe in the idea that I can skip over my

724
00:50:21,559 --> 00:50:28,320
neighbor to somebody ten thousand miles away and and and

725
00:50:28,480 --> 00:50:33,079
forget about the obligation that I have to love my neighbor.

726
00:50:33,639 --> 00:50:38,760
Is that's perverse. And I know that in what we

727
00:50:38,800 --> 00:50:42,639
do is we couch that ability in freedom. Well that's

728
00:50:42,679 --> 00:50:47,039
not really freedom, because this, this frictionless movement of capital

729
00:50:47,480 --> 00:50:53,320
erases it not only erases borders and erases distinctions by

730
00:50:53,360 --> 00:50:58,159
the way, which are the all those I don't want

731
00:50:58,159 --> 00:51:00,800
to turn this into a theology podcas cast because that's

732
00:51:00,880 --> 00:51:03,239
not what this is. But think about think about the

733
00:51:03,360 --> 00:51:06,079
cool thing of you know, way back in the Old Testament,

734
00:51:06,159 --> 00:51:08,440
and whether you believe it was literally true or not.

735
00:51:08,639 --> 00:51:11,159
I mean I do, but but let's but you don't

736
00:51:11,199 --> 00:51:15,639
have to the Tower of Babel. And all the languages

737
00:51:15,679 --> 00:51:18,519
were confused because they were trying to build a pagan

738
00:51:19,079 --> 00:51:23,199
ladder to God, right, this massive Zigarai right and and

739
00:51:23,199 --> 00:51:27,559
and then you get to Acts chapter two and and Pentecost,

740
00:51:28,039 --> 00:51:33,199
and that's reversed. That that that curse of every body's

741
00:51:33,280 --> 00:51:37,079
language being confused is reversed. But isn't It isn't conversed

742
00:51:37,119 --> 00:51:41,519
by God miraculously giving everybody the same language. No, the

743
00:51:41,559 --> 00:51:44,719
miracle is in the hearing in their own distinct languages.

744
00:51:44,920 --> 00:51:51,480
And so there's something cool and and and and uh

745
00:51:52,159 --> 00:51:57,079
and part of God's economy in these distinct ethne these

746
00:51:57,119 --> 00:51:59,320
distinct and that's just the Greek word for nation, these

747
00:51:59,400 --> 00:52:05,440
distinct nationalities doing their own thing. But this cool king

748
00:52:05,519 --> 00:52:09,280
of kings who can bless through still can reverse the

749
00:52:09,320 --> 00:52:12,920
curse of Bible through that. But Christianity and some people

750
00:52:14,199 --> 00:52:18,719
are perverse about how they say. This doesn't erase national distinctions.

751
00:52:19,159 --> 00:52:24,039
It's just a it's a blessing that can overcome the

752
00:52:24,119 --> 00:52:27,239
curses that sometimes come from those national distinctions. So all

753
00:52:27,280 --> 00:52:31,679
that being said is, I'm supposed to love my neighbor, right,

754
00:52:31,719 --> 00:52:35,800
I'm supposed to love my family first. I'm supposed to

755
00:52:35,920 --> 00:52:38,960
take care of mom and dad and my wife and

756
00:52:39,000 --> 00:52:43,519
my kids, and then my neighbor, and then my community.

757
00:52:44,119 --> 00:52:46,599
And then if I've got something left over, maybe I

758
00:52:46,639 --> 00:52:49,800
can give to some charities that where there's special needs,

759
00:52:50,199 --> 00:52:53,199
and those first are to the people of my who

760
00:52:53,280 --> 00:52:58,400
are Christians for me, And then I can worry about

761
00:52:59,119 --> 00:53:04,480
the world that large, right, and and and so this

762
00:53:04,480 --> 00:53:13,559
this frictionless, borderless capital, it destroys that. So I'm okay

763
00:53:14,559 --> 00:53:20,079
with some level of being able to, you know, invest

764
00:53:20,119 --> 00:53:22,719
in the world, but it's got to come at a

765
00:53:22,920 --> 00:53:27,719
cost so as to not destroy that ordered you know,

766
00:53:27,920 --> 00:53:32,199
the the Ordo of Morris, the ordered loves that are

767
00:53:32,400 --> 00:53:36,679
part of Western civilization. Because if you live in a

768
00:53:36,880 --> 00:53:41,360
in a donut preference, then your community that's where we

769
00:53:41,400 --> 00:53:46,239
get destroyed. Communities high crime and nobody gives a pardon me,

770
00:53:46,440 --> 00:53:51,039
Nobody gives a crap because we're just gonna We're just gonna, uh,

771
00:53:52,639 --> 00:53:56,639
because my dollars are free to invest wherever. And that's

772
00:53:56,679 --> 00:54:02,719
perverse and it's wrong, and I God bless the current

773
00:54:02,719 --> 00:54:06,159
administration for putting it, trying to put a dagger through

774
00:54:06,239 --> 00:54:11,199
the heart of that. And that's not freedom. It destroys freedom.

775
00:54:11,280 --> 00:54:15,639
Freedom is my ability to go to Pete and get

776
00:54:15,679 --> 00:54:22,320
his leaf blower and him get my refrigerator. That's freedom. Sorry,

777
00:54:22,559 --> 00:54:24,800
I get a little I get worked up about this

778
00:54:24,880 --> 00:54:31,719
because we've lost what makes Western civilization, Christendom, what made

779
00:54:31,800 --> 00:54:38,840
it was the most unbelievable engine of blessed prosperity in

780
00:54:38,880 --> 00:54:41,920
the history of the world. And we have created a

781
00:54:41,960 --> 00:54:46,239
system that is destroying it. And uh, that's a that's

782
00:54:46,320 --> 00:54:49,280
not just a shame, it's evil. Okay, I'm going to

783
00:54:49,360 --> 00:54:50,039
be less preaching.

784
00:54:50,079 --> 00:54:54,000
Speaker 1: Now. Well, we saw the Silver Christmas with the H

785
00:54:54,039 --> 00:54:57,800
one B thing, right, So you know, there's a lot

786
00:54:57,840 --> 00:55:01,760
of towns that I've been to, you know that I've

787
00:55:01,800 --> 00:55:05,000
been through here in Alabama, and you're just like, Okay,

788
00:55:05,119 --> 00:55:09,960
what happened to this town? And think about this. If

789
00:55:10,000 --> 00:55:12,360
I was to you know, if you were to finance,

790
00:55:12,440 --> 00:55:14,960
say we wanted to open up a steel plant, and

791
00:55:15,039 --> 00:55:17,440
you were, you were helped, you were helping me finance this,

792
00:55:17,679 --> 00:55:20,320
and I was in charge of it. And we're up,

793
00:55:20,400 --> 00:55:22,920
we're getting ready to go up and running, and all

794
00:55:22,920 --> 00:55:24,880
of a sudden, we just started putting ads through the

795
00:55:25,039 --> 00:55:28,039
H one B thing and we're like, okay, we're just

796
00:55:28,119 --> 00:55:32,360
going to We're just going to hire people from India.

797
00:55:32,400 --> 00:55:35,000
We're going to hire people from wherever. We're going to

798
00:55:35,320 --> 00:55:38,400
pay them sixty percent of what we would pay in Alabama.

799
00:55:38,440 --> 00:55:42,119
And I mean, you're an evil motherfucker. I'm sorry, you know,

800
00:55:42,159 --> 00:55:44,559
sorry for the language, but you're you're an evil son

801
00:55:44,599 --> 00:55:48,079
of a bitch. And I mean, really you should. The

802
00:55:48,159 --> 00:55:54,079
people should the people should burn down my factory. That's

803
00:55:54,079 --> 00:55:55,800
what they should do. The people who live there should

804
00:55:55,800 --> 00:55:56,880
burn down my factory.

805
00:55:57,400 --> 00:56:02,519
Speaker 2: I lunched today, aggressive young man. I mean I say young.

806
00:56:02,519 --> 00:56:04,719
He's thirty eight years old, young to me, twenty years

807
00:56:04,760 --> 00:56:12,159
younger than me, who is an engineer, structural structural, mechanical engineer,

808
00:56:12,920 --> 00:56:18,400
very bright guy. And I'm I immediately think, you know,

809
00:56:18,920 --> 00:56:22,760
man if I and the and the talking to him,

810
00:56:22,760 --> 00:56:26,800
because he's you know, they've they've in his firm, they've

811
00:56:26,880 --> 00:56:29,480
hired some h one b's and all this kind of stuff,

812
00:56:29,840 --> 00:56:35,880
and so he's disillusioned, you know, because and I'm thinking, man,

813
00:56:35,920 --> 00:56:39,639
if if we could open up a steel mill or

814
00:56:39,639 --> 00:56:42,719
some shut it would take It wouldn't take six months

815
00:56:42,719 --> 00:56:47,000
for this guy, because he's sharp to become an expert

816
00:56:47,199 --> 00:56:51,880
in whatever it is. Because you learn, people forget you're

817
00:56:51,960 --> 00:56:57,519
not buying. I learned what I do, so the first

818
00:56:57,599 --> 00:56:59,760
six months when I started in the hedge fight, and

819
00:56:59,760 --> 00:57:01,840
what I do with some complicated stuff, a lot of

820
00:57:01,840 --> 00:57:05,840
calculus and all this stuff programming, and you know, the

821
00:57:06,000 --> 00:57:09,239
first six months, I sat in a windowless office and

822
00:57:09,280 --> 00:57:11,079
I was given a stack of books to read. I

823
00:57:11,119 --> 00:57:12,960
wasn't expected to know all this stuff. And I had

824
00:57:13,000 --> 00:57:15,679
a master's degree in derivative finance. I mean it was

825
00:57:15,679 --> 00:57:18,039
an NBA, but it was really in derivative finance. But

826
00:57:18,119 --> 00:57:20,239
I was given a stack of books. I was getting

827
00:57:20,280 --> 00:57:24,480
paid to go learn to what God had given me

828
00:57:24,519 --> 00:57:28,000
with an inquisitive mind and the ability to take in information.

829
00:57:28,639 --> 00:57:33,320
And I was paid for six months to basically do nothing.

830
00:57:33,360 --> 00:57:36,199
I wasn't doing nothing. I was learning. Do you think

831
00:57:36,320 --> 00:57:40,960
this guy had lunch with this brilliant young guy couldn't

832
00:57:41,320 --> 00:57:44,199
in three to six months learn whatever it was. Or

833
00:57:44,440 --> 00:57:47,599
let's say let's say we were going to manufacture clothing.

834
00:57:47,840 --> 00:57:50,599
Let's say we were going to re start making denim here,

835
00:57:50,760 --> 00:57:54,480
you know, some cool genes or nice suits or whatever

836
00:57:54,519 --> 00:57:57,920
it is. He could be an expert. He would know

837
00:57:58,079 --> 00:58:01,880
everything there is to know within six months. But instead

838
00:58:02,159 --> 00:58:05,320
what we do is we go jump over him to

839
00:58:05,440 --> 00:58:08,519
somebody who we and guess what. And I've worked and

840
00:58:08,559 --> 00:58:13,960
I don't have any hatred for anybody who was you know,

841
00:58:14,199 --> 00:58:18,159
had the is born in India or whatever. I don't

842
00:58:18,280 --> 00:58:22,239
have any hatred toward anybody. But I'm just supposed to

843
00:58:22,280 --> 00:58:28,360
love my neighbor first. And there is untold talent waiting

844
00:58:28,440 --> 00:58:32,840
to be tapped to go do cool stuff here. We've

845
00:58:32,920 --> 00:58:37,360
just got unlock it and incentivized doing it. And uh

846
00:58:37,920 --> 00:58:43,599
and the the inability to see that is kind of disgusting.

847
00:58:43,920 --> 00:58:47,400
I mean, look, who has has musk brought in some

848
00:58:47,559 --> 00:58:50,199
h one b z y. I know he has. But

849
00:58:50,320 --> 00:58:53,960
I've got friends, friends of friends who are in his

850
00:58:54,039 --> 00:58:58,679
operation down in Bocachica and he's employed a ton of

851
00:58:59,079 --> 00:59:03,320
smart America who are doing other stuff. And we're like, oh,

852
00:59:03,400 --> 00:59:05,039
we can learn how to do this they did know

853
00:59:05,079 --> 00:59:07,400
how to build rockets when they were doing other things.

854
00:59:07,760 --> 00:59:12,639
There is untold potential in America that is waiting to

855
00:59:12,679 --> 00:59:17,800
be unlocked. Guys who are doing financialization things, you know,

856
00:59:19,400 --> 00:59:24,239
who could I'll tell you, Guys who are spending ridiculous

857
00:59:24,480 --> 00:59:31,760
hours figuring out people's income taxes or programming. What a waste.

858
00:59:32,320 --> 00:59:35,599
If we really went full Manti on this Trump deal

859
00:59:35,599 --> 00:59:40,440
and we replaced our income tax, if we quit taxing

860
00:59:40,679 --> 00:59:46,320
for productivity and taxed consumption and the ability to sell

861
00:59:46,360 --> 00:59:51,039
goods here, did away with the income tax, the talent

862
00:59:51,159 --> 00:59:54,639
that would be unlocked by people who are just working

863
00:59:54,679 --> 01:00:00,920
on the on taxes, and that entire ecosystem is untold.

864
01:00:01,079 --> 01:00:06,239
My next door neighbor, sweet smart lady. She works for

865
01:00:06,320 --> 01:00:11,079
the irs. She should be doing something productive, not that

866
01:00:13,039 --> 01:00:15,840
she's I mean, I'm not a big fan of of

867
01:00:16,159 --> 01:00:19,760
of women giving their life away to working instead of

868
01:00:19,760 --> 01:00:21,840
having kids, but some are gonna choose to do that,

869
01:00:22,599 --> 01:00:27,199
and she could be you know anyway, I know I'm

870
01:00:27,199 --> 01:00:30,360
beating a dead horse here, but we have got to

871
01:00:30,880 --> 01:00:36,679
we have got to be supporting our telling our representatives

872
01:00:37,000 --> 01:00:41,519
to support Trump in this effort to unlocking American talent.

873
01:00:42,159 --> 01:00:46,360
An American opportunity because it's right and it's there, and

874
01:00:46,400 --> 01:00:50,840
people are gonna I think the ability to generate wealth

875
01:00:50,920 --> 01:00:55,400
is greater here than shipping it, shipping those dollars elsewhere.

876
01:00:55,480 --> 01:00:57,199
I really believe that.

877
01:00:59,840 --> 01:01:02,440
Speaker 1: The argument that you're going to get is what you're

878
01:01:02,480 --> 01:01:05,559
going to trade for. That is you're going to trade

879
01:01:05,559 --> 01:01:06,599
at higher prices.

880
01:01:08,639 --> 01:01:12,400
Speaker 2: Well not in the people don't understand, so so so

881
01:01:12,599 --> 01:01:18,239
terriff people saying tariffs are are inflationary. No they're not.

882
01:01:18,360 --> 01:01:21,760
They're actually deflationary. And the reason everybody, that's the reason

883
01:01:21,800 --> 01:01:26,159
everybody's throwing an absolute hissy fit, is because we are

884
01:01:26,320 --> 01:01:33,679
so levered to the gills. What deflation destroys anybody who's

885
01:01:33,800 --> 01:01:38,079
levered because suddenly their deaths just increasing and increasing and increasing.

886
01:01:38,559 --> 01:01:41,760
So that's why people are freaking out. The people who

887
01:01:41,800 --> 01:01:46,880
are rewarded are savers, which we used to understand in

888
01:01:46,880 --> 01:01:51,679
in Western civilization or the bedrock of any civilization. Are

889
01:01:51,719 --> 01:01:55,360
the people who get this this this sounds crazy, who

890
01:01:55,400 --> 01:01:58,880
spend less than they make. That's that's your salt of

891
01:01:59,039 --> 01:02:02,760
the earth people. The people who are actually who are

892
01:02:02,840 --> 01:02:05,719
tied to their to the generation who went before them

893
01:02:05,719 --> 01:02:07,559
and the generation who is after you want to know

894
01:02:07,719 --> 01:02:11,000
the real fascism, to be afraid of the fascism of

895
01:02:11,000 --> 01:02:15,280
the living people who are not tied to the to

896
01:02:15,440 --> 01:02:17,559
the people who came before them and the people who

897
01:02:17,639 --> 01:02:22,639
are coming after them, and that that's that's that's what

898
01:02:22,719 --> 01:02:26,800
should be you should scare you is people who only

899
01:02:26,920 --> 01:02:32,119
live for themselves. That's that's. Uh, those people will do

900
01:02:32,400 --> 01:02:40,679
untold evil. But uh so anyway, tariffs, because of the

901
01:02:40,719 --> 01:02:46,199
elasticity of demand, are deflationary. That's why we've seen, uh,

902
01:02:46,679 --> 01:02:48,960
treasury bonds go up. That's why I'm getting a long

903
01:02:49,000 --> 01:02:52,519
treasury bonds. That's why I've seen them, to a certain

904
01:02:52,559 --> 01:02:56,840
degree extent the market come down. It's it's your you

905
01:02:56,960 --> 01:03:02,360
eventually punish those levered real relationships. And it's way more

906
01:03:02,360 --> 01:03:06,159
complicated than that. And uh but and there, and there's

907
01:03:06,320 --> 01:03:09,519
the medium term. The medium term impact is different than

908
01:03:09,559 --> 01:03:14,519
the long term impact different yet but uh, it doesn't

909
01:03:14,639 --> 01:03:16,880
have to be inflationary, and I don't think in the

910
01:03:16,920 --> 01:03:17,760
short term it is.

911
01:03:20,320 --> 01:03:23,519
Speaker 1: Yeah, it's one thing that I'm talking to Stormy really

912
01:03:23,880 --> 01:03:26,760
he helped me to understand is the people.

913
01:03:26,840 --> 01:03:28,800
Speaker 2: What did me say, Did Stormy agree with me? I

914
01:03:28,800 --> 01:03:30,199
hope so start.

915
01:03:29,760 --> 01:03:33,159
Speaker 1: Yeah, he said he said, people, people who are leveraged

916
01:03:33,199 --> 01:03:36,079
to the hilt are the thing that fear. They fear

917
01:03:36,119 --> 01:03:42,480
the most is deflation, thank you, because yeah, yeah, deflation

918
01:03:42,679 --> 01:03:47,280
helps people like us. But the people who are you know,

919
01:03:47,679 --> 01:03:51,920
within this system and uh, you know, married to the system,

920
01:03:51,960 --> 01:03:54,159
wed to the system, where every bit of their wealth

921
01:03:54,239 --> 01:03:56,880
is wed to the system in a certain way, deflation

922
01:03:57,119 --> 01:04:01,960
is going to destroy their wealth. And yeah, that's that's

923
01:04:01,960 --> 01:04:04,639
why they don't want to see prices go down. So

924
01:04:05,239 --> 01:04:08,000
you have this trope out there of oh, tariffs are

925
01:04:08,039 --> 01:04:10,239
just attacks, it's just going to raise here, you know.

926
01:04:10,280 --> 01:04:14,840
And then then you ask a question like, well, if

927
01:04:14,880 --> 01:04:17,960
tariffs are so bad, how come like every other country

928
01:04:17,960 --> 01:04:21,719
in the world uses them, And people are like, well,

929
01:04:21,760 --> 01:04:24,159
if every if every other country in the world punched

930
01:04:24,159 --> 01:04:27,000
themselves in the dick, would does that mean we have

931
01:04:27,119 --> 01:04:33,599
to It's like, well there, yeah, I mean folks, yeah,

932
01:04:33,639 --> 01:04:38,960
I mean, I mean Austrians are free, marketers are some

933
01:04:39,039 --> 01:04:44,159
of them are absolutely insane. You can have conversations anarcho capitalists.

934
01:04:44,159 --> 01:04:46,840
Speaker 2: I don't think, you know, let's let's go back to

935
01:04:46,880 --> 01:04:50,079
Adam Smith, who which is where a lot of this

936
01:04:50,159 --> 01:04:53,199
originated in theory originated. Again, I think It goes back

937
01:04:53,239 --> 01:04:56,960
to just the idea of free price discovery and the

938
01:04:57,039 --> 01:05:00,920
ability to have free the freedom of arms length transactions.

939
01:05:01,519 --> 01:05:04,760
I personally think that is the freedom that absolutely must

940
01:05:04,840 --> 01:05:09,360
be protected at all costs. And you've seen erosions in

941
01:05:09,400 --> 01:05:13,280
that since well, the Civil Rights Act has eroded that

942
01:05:13,360 --> 01:05:16,719
because I can't you know, freedom of association has been

943
01:05:16,800 --> 01:05:23,920
somewhat destroyed, and that erodes that the ridiculous amount of

944
01:05:24,000 --> 01:05:26,960
regulation that you have to fish through in order to

945
01:05:27,039 --> 01:05:32,000
open up a business, but has eroded that. But that's

946
01:05:32,079 --> 01:05:36,400
the that is what absolutely must be protected. But Adam Smith,

947
01:05:36,960 --> 01:05:40,760
in Wealth of Nations and in general, was what did

948
01:05:40,800 --> 01:05:44,360
he assume when he was talking about the freedom of

949
01:05:44,480 --> 01:05:49,800
trade and capital flows? Was it in the modern state? No,

950
01:05:50,239 --> 01:05:56,159
he was talking about within Christendom, where you shared presuppositions

951
01:05:56,280 --> 01:05:59,960
and in other words, you were held to everybody understand

952
01:06:00,079 --> 01:06:02,719
good that we may disagree, we may go to war

953
01:06:02,800 --> 01:06:06,400
over the different flavors, but we ultimately are serving the

954
01:06:06,440 --> 01:06:09,239
same God, and we we know that we're going to

955
01:06:09,280 --> 01:06:14,320
be held in judgment if I violate these certain you know, uh,

956
01:06:14,400 --> 01:06:19,559
these certain transcendental rules, uh, the the the certain trans

957
01:06:19,639 --> 01:06:24,079
transcendent ideas of what is right and wrong, which uh

958
01:06:24,440 --> 01:06:30,280
and so Smith understood. He would laugh at China being granted,

959
01:06:30,960 --> 01:06:37,360
you know, uh, free access of of uh, because they

960
01:06:37,360 --> 01:06:41,239
don't share our basic view of how life in the

961
01:06:41,280 --> 01:06:46,960
world works. Uh, or you know, or Vietnam for that matter.

962
01:06:47,519 --> 01:06:50,360
You know where all the Nike shoes are made. Boy,

963
01:06:50,480 --> 01:06:51,719
Vietnam came to the table.

964
01:06:51,719 --> 01:06:52,480
Speaker 1: Click, didn't they?

965
01:06:52,840 --> 01:06:56,559
Speaker 2: That was funny? Uh? No, do you think that? Do

966
01:06:56,599 --> 01:06:59,800
you think the acting CEO of Nike made a phone

967
01:06:59,840 --> 01:07:02,639
call to the president of Vietnam? Hey, you know, I

968
01:07:02,679 --> 01:07:05,440
got some good news and some bad news.

969
01:07:05,840 --> 01:07:09,079
Speaker 1: Yeah, you know everybody they had they had ninety tariffs

970
01:07:09,079 --> 01:07:15,280
on us, and people are Okay. Do you think how

971
01:07:15,320 --> 01:07:18,039
many cities are there in Vietnam right now? Do you

972
01:07:18,119 --> 01:07:21,960
think that are worse than like the South side of

973
01:07:22,000 --> 01:07:28,719
Chicago or Camden, New Jersey, or you know, pick pick

974
01:07:28,719 --> 01:07:32,039
a ghetto, pick a ghetto, any ghetto. Yeah, do you

975
01:07:32,039 --> 01:07:34,920
think they do? You think they have those? Oh, but

976
01:07:34,920 --> 01:07:37,559
they're punching themselves in the deck by charging us ninety

977
01:07:37,880 --> 01:07:43,360
shut the I'm serious, man. And then you know what's funny.

978
01:07:43,360 --> 01:07:46,119
They're like, they're like, where did this question come from?

979
01:07:46,400 --> 01:07:50,480
Where did this question of if everyone else can charge tariffs.

980
01:07:50,480 --> 01:07:52,880
How can we look I don't I don't care if

981
01:07:52,880 --> 01:07:58,000
it came from Benjamin and Yahoo answer the fucking question. Yeah.

982
01:07:58,400 --> 01:08:06,039
Speaker 2: Yeah. So the reason every country generally has some type

983
01:08:06,079 --> 01:08:13,039
of gating mechanism at the border is because, you because

984
01:08:13,079 --> 01:08:17,119
they understand that the chief loyalty of any state is

985
01:08:17,159 --> 01:08:21,640
to its own citizens. We're the only I mean, how

986
01:08:21,640 --> 01:08:25,439
many other countries have birthright citizenship or you dilute your

987
01:08:25,479 --> 01:08:29,119
own You can have, you know, hey, vacation to America,

988
01:08:29,279 --> 01:08:31,760
drop a kid and have a brand new citizen who

989
01:08:31,840 --> 01:08:34,840
is going to get Social Security benefits forever. I mean,

990
01:08:35,039 --> 01:08:39,199
who else does that? We there was a point in

991
01:08:39,279 --> 01:08:42,960
time where we had to fill the western half of

992
01:08:43,000 --> 01:08:45,920
this country up because if we didn't, Spain or the

993
01:08:45,960 --> 01:08:51,319
French or the Brits or somebody was going to and

994
01:08:51,600 --> 01:08:54,560
we had to you know, did we go too far?

995
01:08:54,760 --> 01:08:56,840
Or we had to fill this place up. And we

996
01:08:56,960 --> 01:09:00,000
understood that that was generally going to be with people

997
01:09:00,119 --> 01:09:04,319
from Europe who looked and talked and believe the way

998
01:09:04,359 --> 01:09:06,920
we do. They might have a different, you know, linguistic

999
01:09:07,000 --> 01:09:10,479
spin on it. Some might be Catholics, some might be Protestant,

1000
01:09:11,560 --> 01:09:14,079
but generally it was going to be that, and hey,

1001
01:09:14,159 --> 01:09:16,199
we got to fill this up, so go come over

1002
01:09:16,239 --> 01:09:20,800
here and take some land so that the Spanish won't

1003
01:09:20,840 --> 01:09:24,199
or the Mexicans won't or the French won't. Right, and

1004
01:09:24,279 --> 01:09:29,520
so I get that now we filled it up. So

1005
01:09:29,520 --> 01:09:33,439
so this idea of birthright citizenship that dilutes our own

1006
01:09:34,840 --> 01:09:38,479
our our you know, our own franchise. I'm talking about

1007
01:09:38,479 --> 01:09:43,319
in the citizenship sense of franchise. It's crazy, but we do.

1008
01:09:43,479 --> 01:09:44,479
Speaker 1: We do that.

1009
01:09:44,680 --> 01:09:50,479
Speaker 2: This is our government does not. Our government's chief loyalty

1010
01:09:50,960 --> 01:09:54,399
is to the dollar. It is not to you and me, Pete.

1011
01:09:55,000 --> 01:09:58,960
It's just not. Now we're seeing that change and people

1012
01:09:59,000 --> 01:10:01,880
are screaming bloody, and I'm like, don't you understand what

1013
01:10:01,920 --> 01:10:06,319
this what's being changed here? That we're We're at least

1014
01:10:06,359 --> 01:10:09,840
moving back to the political reality that Hobbes understood that,

1015
01:10:09,920 --> 01:10:18,520
Carl Schmidt understood that that that that I am protected

1016
01:10:19,039 --> 01:10:23,520
by the state. Therefore I'm willing to sign up for

1017
01:10:23,560 --> 01:10:28,560
the draft or pay whatever taxes. That's the trade. If

1018
01:10:28,600 --> 01:10:31,920
you don't give me this, why the why would I

1019
01:10:31,960 --> 01:10:39,800
ever do this? What there just because there's a flag waving,

1020
01:10:40,439 --> 01:10:42,920
I'm supposed to have loyalty to this? No, it was

1021
01:10:42,960 --> 01:10:47,920
based in Covenant, because, as Schmidt said, every political reality

1022
01:10:48,119 --> 01:10:51,079
is just a secularized version of what we how we

1023
01:10:51,239 --> 01:10:55,239
view God, and God says, hey, look again, I'm not

1024
01:10:55,239 --> 01:10:58,199
trying to turn this into a theology podcast, but this

1025
01:10:58,279 --> 01:11:00,520
is where we get our understanding of the state from

1026
01:11:00,920 --> 01:11:03,479
is from the idea that God says, hey, look, i'm

1027
01:11:03,520 --> 01:11:06,680
gonna you're you're gonna be I'm gonna be your God,

1028
01:11:06,680 --> 01:11:09,239
You're gonna be my people. And then the new Covenant, Hey,

1029
01:11:09,239 --> 01:11:11,920
it's even better. I'm gonna send a king and to

1030
01:11:12,000 --> 01:11:14,800
show you how much I love you, he's gonna die

1031
01:11:14,920 --> 01:11:18,119
for you so that if you just pledge your loyalty

1032
01:11:18,159 --> 01:11:22,079
to me, I'm gonna take I'm gonna I'm gonna I'm

1033
01:11:22,119 --> 01:11:23,199
gonna take care of you.

1034
01:11:23,479 --> 01:11:23,920
Speaker 1: Okay.

1035
01:11:24,199 --> 01:11:27,680
Speaker 2: So our understanding of the state is that's the role

1036
01:11:27,880 --> 01:11:31,960
of the king or the government is they take They

1037
01:11:31,960 --> 01:11:34,159
don't take care of me in the sense of they

1038
01:11:34,199 --> 01:11:37,840
provide for some ubi or any of this, or you know,

1039
01:11:38,439 --> 01:11:42,760
state medicine or anything. They're gonna make sure that generally

1040
01:11:42,800 --> 01:11:47,279
there's peace. I'm free, I can walk my own the

1041
01:11:47,319 --> 01:11:50,159
streets of my neighborhood without fearing for my life or

1042
01:11:50,199 --> 01:11:55,319
being mugged that I'm generally at peace from foreign invaders,

1043
01:11:55,760 --> 01:11:58,560
and that if I have a dispute with my with

1044
01:11:58,640 --> 01:12:02,439
my with my neighbor, that if it gets bad enough,

1045
01:12:02,479 --> 01:12:06,640
that we can go and have somebody who's righteous judge

1046
01:12:06,880 --> 01:12:10,880
and decide our disputes. And so you provide me those things,

1047
01:12:10,960 --> 01:12:13,199
and I'm going to be loyal to you. I'm going

1048
01:12:13,279 --> 01:12:16,680
to be I'm going to follow the law. That's the

1049
01:12:16,760 --> 01:12:21,119
trade that we make, because that's a secularized version of

1050
01:12:21,159 --> 01:12:24,840
what God offers us. This is Carl Schmidt one on

1051
01:12:24,840 --> 01:12:27,720
one book called Political Theology. Go read it. It will

1052
01:12:28,119 --> 01:12:31,960
blow your mind. And if somebody says how he was

1053
01:12:32,000 --> 01:12:35,760
a Nazi, look it's a lot more complicated than that.

1054
01:12:36,560 --> 01:12:39,039
Number two. It doesn't make it not true. It doesn't

1055
01:12:39,039 --> 01:12:40,520
make it not true. Here's brilliant.

1056
01:12:41,079 --> 01:12:44,199
Speaker 1: What's that the I don't care anymore about that?

1057
01:12:44,279 --> 01:12:45,880
Speaker 2: Well, I know you don't. But there's going to be

1058
01:12:45,880 --> 01:12:49,840
people who you know, who listened to who's gonna swing

1059
01:12:49,920 --> 01:12:52,319
by this and go run. Why are you quoting that?

1060
01:12:52,760 --> 01:12:56,880
Go read it? And later Schmidt, in his book called Laws,

1061
01:12:57,239 --> 01:12:59,680
said that the basis of all this that he got

1062
01:12:59,720 --> 01:13:04,920
all the because of his understanding of his loyalty, and

1063
01:13:04,960 --> 01:13:09,119
Schmidt had a complicated relationship to the church, get it.

1064
01:13:09,600 --> 01:13:12,119
But he said he understood all this because of his

1065
01:13:12,239 --> 01:13:19,159
loyalty to Christ and that the role of that that

1066
01:13:19,159 --> 01:13:24,000
that civilization societies are built upon shared ways of life,

1067
01:13:24,760 --> 01:13:28,920
which and we understand that because that's what that We

1068
01:13:29,039 --> 01:13:33,880
understand that from our understanding of God. And so that's

1069
01:13:33,960 --> 01:13:40,239
not Nazi or anything. That's just basic you know, Christian

1070
01:13:40,399 --> 01:13:45,439
Western civilization. Okay, I get so tired of having to

1071
01:13:45,479 --> 01:13:49,479
defend this stuff, but anyway, it is what it is.

1072
01:13:49,560 --> 01:13:53,479
Speaker 1: Yeah, Yeah, I don't have a problem with talking with

1073
01:13:53,520 --> 01:13:56,479
theology because I've gotten to the point where I've read

1074
01:13:56,600 --> 01:13:59,479
enough yacky and you know, once you once you dive

1075
01:13:59,520 --> 01:14:02,600
into hag enough and you start getting into Spangler. You

1076
01:14:02,640 --> 01:14:06,399
can't have a conversation with somebody really if you're just

1077
01:14:06,520 --> 01:14:11,479
talking about Yeah, the thing that one of my pet

1078
01:14:11,520 --> 01:14:14,479
peeves and I won't even I won't even entertain it anymore.

1079
01:14:14,640 --> 01:14:16,920
Is anybody who wants to talk about in the interwar

1080
01:14:17,000 --> 01:14:21,439
years like ninety nineteen nineteen to nineteen thirty nine, who

1081
01:14:22,000 --> 01:14:26,520
wants to talk everything as a black and white issue, evil, bad, good, good?

1082
01:14:27,520 --> 01:14:31,439
You have You're not even aware ye, I mean read

1083
01:14:31,479 --> 01:14:36,399
Spangler social social Opprussian socialism. What is he talking about?

1084
01:14:36,439 --> 01:14:39,079
In the beginning, he's saying, there everyone who is running

1085
01:14:39,079 --> 01:14:41,680
around calling themselves a socialist, and no one can no

1086
01:14:41,720 --> 01:14:45,159
one can define the term. He's like, these people, they

1087
01:14:45,159 --> 01:14:47,680
were throwing stuff at the wall to seeing what was stick,

1088
01:14:48,199 --> 01:14:51,520
see what was stick. Ideology was gone. They were just

1089
01:14:51,560 --> 01:14:54,119
trying to figure out how to survive in most cases.

1090
01:14:54,399 --> 01:14:56,399
And then you read somebody, you know, you read someone

1091
01:14:56,439 --> 01:14:58,960
like Yaki, and it's like, okay, well, I mean and

1092
01:14:59,000 --> 01:15:02,239
then you read Hegel and it's like, if there's no

1093
01:15:03,039 --> 01:15:07,680
if you're not even going to entertain metaphysics at a

1094
01:15:08,039 --> 01:15:10,439
even at a base level, how do I have a

1095
01:15:10,840 --> 01:15:13,479
I can't have a conversation with you. Politics is not

1096
01:15:13,560 --> 01:15:16,800
black and white, you know, Continental philosophy is not black

1097
01:15:16,840 --> 01:15:20,760
and white. It's a philosophy, and you can't.

1098
01:15:21,720 --> 01:15:31,079
Speaker 2: Yeah, well, uh, it's interesting that you know Hegel. Everybody,

1099
01:15:31,600 --> 01:15:37,359
the the the conservative approach to Hegel has judged him

1100
01:15:37,880 --> 01:15:42,199
by the fruits of the Neohegelian so Marx and so forth.

1101
01:15:42,239 --> 01:15:46,680
And that's unfair to Hegel because Hegel was really trying

1102
01:15:46,720 --> 01:15:52,479
to wrestle with the fact that Progressivism ended up out

1103
01:15:52,479 --> 01:15:57,920
of thesis antithesis. Synthesis was not Hegel. Hegel was just like, look,

1104
01:15:57,960 --> 01:16:02,880
this is how, this is how, this is how history progresses.

1105
01:16:03,399 --> 01:16:07,479
Progressivism is the thing is is the abomination that added

1106
01:16:07,560 --> 01:16:09,840
on top that that arrow always goes up.

1107
01:16:10,319 --> 01:16:10,800
Speaker 1: That was not.

1108
01:16:11,880 --> 01:16:16,520
Speaker 2: Uh, that was not that was not parton that. That

1109
01:16:16,720 --> 01:16:19,000
wasn't the bedrock of what Hegel was trying to say.

1110
01:16:19,000 --> 01:16:22,840
Hegel was really trying to understand. Look that that time

1111
01:16:23,079 --> 01:16:27,239
moves one direction. Okay, you can't go back. Nostalgia will

1112
01:16:27,359 --> 01:16:32,319
kill you because you can look to the past for

1113
01:16:32,319 --> 01:16:36,600
for for perhaps we did things in the past that

1114
01:16:36,640 --> 01:16:38,680
were better. But you can't go back to the past.

1115
01:16:38,800 --> 01:16:42,520
History moves forward. And Hegel understood that. But to judge

1116
01:16:42,560 --> 01:16:48,800
him simply by the Neo Hegelians is unfair to his project.

1117
01:16:48,840 --> 01:16:52,279
It's like judging Calvin based upon the five points of

1118
01:16:52,319 --> 01:16:55,920
Calvinism and the and in the later case, and again

1119
01:16:56,000 --> 01:17:00,000
I'm a Presbyterian, I'm a Calvinist. But but Calvin would

1120
01:17:00,079 --> 01:17:02,520
of kind of looks giving you side eye at the

1121
01:17:02,520 --> 01:17:05,560
fire that that came later, So you you it's more

1122
01:17:05,560 --> 01:17:09,399
complicated than that. That's number one and number and and

1123
01:17:09,399 --> 01:17:11,800
and you know I haven't read I have I just

1124
01:17:11,840 --> 01:17:14,359
have to admit I haven't read yacky, so so I

1125
01:17:14,399 --> 01:17:22,920
can't speak speak to that. But but uh, but the

1126
01:17:22,920 --> 01:17:27,199
the the philosophy, the whole point of philosophy is to love.

1127
01:17:27,479 --> 01:17:31,039
It is to love wisdom, and wisdom goes all the

1128
01:17:31,039 --> 01:17:35,399
way back to just right and wrong. That that that

1129
01:17:36,000 --> 01:17:38,880
wisdom is the apply look at the at the at

1130
01:17:38,880 --> 01:17:44,000
the proverbs. That the idea is to pursue the understanding

1131
01:17:44,439 --> 01:17:48,680
of what is good and evil, and then so and

1132
01:17:48,680 --> 01:17:52,079
and politics is a layer on top of that, which

1133
01:17:52,119 --> 01:17:56,840
is in applying wisdom understanding good and evil to make

1134
01:17:56,880 --> 01:18:00,399
the better or as Plato would say, the just or

1135
01:18:00,439 --> 01:18:03,199
as Paul would say, using the same exact word, the

1136
01:18:03,319 --> 01:18:08,680
righteous city. And so and then grand politics are national

1137
01:18:08,800 --> 01:18:13,119
politics is how do we as a civilization unite these

1138
01:18:13,119 --> 01:18:18,079
cities together in the pursuit of this goal? And and

1139
01:18:18,079 --> 01:18:23,840
and so, philosophy and politics and religion are all tied

1140
01:18:23,880 --> 01:18:26,920
together in this pursuit of what is good and right,

1141
01:18:27,039 --> 01:18:30,159
of understanding good and evil. And there is good and evil.

1142
01:18:30,640 --> 01:18:36,079
There just is. And if you abandon that, you're then

1143
01:18:36,239 --> 01:18:39,520
that's what's going to lead to I'm just I'm just

1144
01:18:39,640 --> 01:18:42,520
a fungible economic unit, and we're going to have a

1145
01:18:43,720 --> 01:18:46,279
the United States is just going to be an economic zone,

1146
01:18:46,720 --> 01:18:49,239
and we're going to have free flow of capital. And

1147
01:18:49,279 --> 01:18:52,119
you know, an Indian who's not a citizen is just

1148
01:18:52,159 --> 01:18:55,920
as good as Tom next door. And why use Tom's

1149
01:18:56,319 --> 01:19:01,079
Why use Tom's human capital? When I can get whatever

1150
01:19:02,159 --> 01:19:04,840
human capital down we keep beating up on India. It

1151
01:19:04,840 --> 01:19:09,279
can be whoever. You know. Uh, that's how you get

1152
01:19:09,319 --> 01:19:12,239
all this. And it all goes back to is there

1153
01:19:12,279 --> 01:19:14,920
good and evil? Which I know Hegel did talk about,

1154
01:19:16,239 --> 01:19:20,199
and uh, and how do you pursue the study of

1155
01:19:20,239 --> 01:19:23,720
wisdom philosophy? And how do you apply that to the

1156
01:19:23,760 --> 01:19:29,239
city politics? And in tying it all together in national

1157
01:19:29,359 --> 01:19:33,079
you know, nationalism or national politics, that's all nationalism is

1158
01:19:33,079 --> 01:19:36,159
is are we united together in pursuing what is good

1159
01:19:36,239 --> 01:19:40,279
and right and the blessing of our neighbors. That's all

1160
01:19:40,680 --> 01:19:46,159
nationalism is. The state has its first loyalty to its

1161
01:19:46,319 --> 01:19:50,159
own citizens in the pursuit of what is good and

1162
01:19:50,239 --> 01:19:53,960
right and their blessing. It is not some scary where

1163
01:19:54,000 --> 01:19:58,439
it can get scary because if the hey look in Germany,

1164
01:19:58,680 --> 01:20:01,960
there were roving in that period. You're talking about the

1165
01:20:01,960 --> 01:20:06,000
interact the period between the Wars, and I know you're

1166
01:20:06,159 --> 01:20:10,800
friends with you know, we both know Darryl and he's

1167
01:20:10,840 --> 01:20:13,279
going to really expose a lot of this stuff, and

1168
01:20:13,319 --> 01:20:16,279
I think in his upcoming series. But that period between

1169
01:20:16,319 --> 01:20:21,439
the Wars was civilization itself had broken down and it

1170
01:20:21,520 --> 01:20:25,439
was roving gangs of violence and chaos. And I'll tell

1171
01:20:25,439 --> 01:20:29,199
you what. You can say whatever you want about about

1172
01:20:29,439 --> 01:20:32,760
good about all this stuff, but that's evil. When I

1173
01:20:32,840 --> 01:20:35,199
can't walk out, when I can't feed my family and

1174
01:20:35,239 --> 01:20:37,239
I can't walk out my front door for fear of

1175
01:20:37,279 --> 01:20:40,479
my own life, for the ability to make a living,

1176
01:20:40,520 --> 01:20:43,520
and all my savings have been destroyed, and I got

1177
01:20:43,520 --> 01:20:48,000
to you know, all of that, that's evil, that's chaos.

1178
01:20:48,640 --> 01:20:51,840
And if you want a German who speaks cogently about that,

1179
01:20:52,159 --> 01:20:55,279
you go back to Martin Luther. Martin Luther said, hey,

1180
01:20:55,520 --> 01:21:00,520
there's got to be peace. Peace is the first first

1181
01:21:00,640 --> 01:21:02,520
duty of the king.

1182
01:21:02,920 --> 01:21:08,640
Speaker 1: So yeah, I read a book on on my show

1183
01:21:08,680 --> 01:21:15,159
called Blockade, The Diary of a middle class Austrian Housewife

1184
01:21:15,479 --> 01:21:19,840
by Anna eisen Manger. Someone resurrected it some years ago

1185
01:21:20,319 --> 01:21:23,920
and she talked about that in nineteen twenty to twenty

1186
01:21:23,920 --> 01:21:28,319
one Austria was Austria suffered the worst from the blockade,

1187
01:21:29,039 --> 01:21:37,960
and she had visited a relative's farm. She risked traveling

1188
01:21:38,119 --> 01:21:41,000
by road to go to that farm, and what she

1189
01:21:41,199 --> 01:21:45,479
experienced in that going to that farm was roving bands

1190
01:21:46,159 --> 01:21:51,399
of psychopaths destroying farms, stealing everything. And they were from Russia.

1191
01:21:51,720 --> 01:21:54,319
She clearly says, you know, they had come in from Russia,

1192
01:21:54,760 --> 01:21:56,880
so you know, you can just imagine what they were

1193
01:21:56,920 --> 01:22:01,079
who they were, And yeah, I mean that is people.

1194
01:22:01,319 --> 01:22:09,000
People need to understand that civilization is and I know

1195
01:22:09,359 --> 01:22:14,079
we have to end, but civilization is like this close

1196
01:22:14,159 --> 01:22:17,760
from falling apart. And yeah, I think a lot of

1197
01:22:17,800 --> 01:22:20,079
what we discussed today and a lot of what we

1198
01:22:20,119 --> 01:22:24,680
critique today gets us closer to that civilization falling apart,

1199
01:22:24,960 --> 01:22:28,960
and a lot of what we're advocating for brings us

1200
01:22:28,960 --> 01:22:32,239
together because then we understand that we're all in it together,

1201
01:22:32,800 --> 01:22:38,199
and hopefully we have leadership and elites that help us

1202
01:22:38,239 --> 01:22:40,520
and back us up in that. So, yeah, I think

1203
01:22:40,520 --> 01:22:41,399
that's what we can hope for.

1204
01:22:42,399 --> 01:22:46,119
Speaker 2: I hope, so, I hope so, and I hope. Look,

1205
01:22:46,880 --> 01:22:56,399
dislocations of capital absolutely have collateral damage, and so if

1206
01:22:56,640 --> 01:23:02,199
the chaos that this is hopefully short and causes a

1207
01:23:02,239 --> 01:23:06,600
minimum of that because look, if you know, it's not

1208
01:23:09,119 --> 01:23:14,760
you know, the the the financialization that I that the

1209
01:23:14,920 --> 01:23:18,239
ridiculous levels of financialization that I hope are brought to

1210
01:23:19,039 --> 01:23:22,960
brought to heal through all this, the in the in

1211
01:23:23,039 --> 01:23:28,439
the middle to long run have built up these ecosystems,

1212
01:23:28,479 --> 01:23:31,720
and I don't want undue suffering among people who are hey,

1213
01:23:31,800 --> 01:23:34,279
just try Oh look I'm good at accounting. I can

1214
01:23:34,640 --> 01:23:38,479
I can service all these things that are products of financialization.

1215
01:23:38,560 --> 01:23:42,279
That's you know, that's not if you know Frank who

1216
01:23:43,079 --> 01:23:47,399
built that business, I don't want his life destroyed. That's

1217
01:23:47,399 --> 01:23:51,439
not that's that's that's not the point. So so we've

1218
01:23:51,439 --> 01:23:55,720
got to, you know, think through solutions to to help

1219
01:23:55,760 --> 01:24:00,319
people out in this. But but make no mistake, this

1220
01:24:00,439 --> 01:24:02,439
system is going to get destroyed. And it's either going

1221
01:24:02,479 --> 01:24:05,239
to be destroyed on our terms, which is what we're

1222
01:24:05,239 --> 01:24:08,760
trying to do, or it's going to be just you know,

1223
01:24:08,840 --> 01:24:11,560
what I think we're staring at is as a conflict

1224
01:24:11,600 --> 01:24:15,199
possibly with China in the fall, in the in the

1225
01:24:15,279 --> 01:24:19,159
lauter part of the year, because we are really going

1226
01:24:19,199 --> 01:24:21,960
to hurt them through this. And it reminds me a

1227
01:24:21,960 --> 01:24:24,760
lot of what we did with Japan in the lead

1228
01:24:24,840 --> 01:24:29,359
up to World War Two when they invaded into China

1229
01:24:29,399 --> 01:24:32,239
and we blockaded all their fuel sources, and that's what

1230
01:24:32,399 --> 01:24:36,960
led to Pearl Harbor. And you can disagree or agree

1231
01:24:37,000 --> 01:24:39,239
with all of that, that's not the point. The point

1232
01:24:39,319 --> 01:24:41,760
is is if you corner an animal into into a corner,

1233
01:24:41,920 --> 01:24:45,880
you good chance of getting a bit. So does that

1234
01:24:45,920 --> 01:24:48,039
look like an invasion of Taiwan later in the year,

1235
01:24:48,079 --> 01:24:50,279
does that look like a blockade of Taiwan? I don't

1236
01:24:50,399 --> 01:24:53,319
I don't know. I would probably come on the side

1237
01:24:53,319 --> 01:24:56,960
of blockade. And does that force our hand into something

1238
01:24:57,000 --> 01:25:00,600
that that do we get stoopid? I mean, is is

1239
01:25:00,680 --> 01:25:03,920
Taiwan worth enough for us to get our lights turned

1240
01:25:03,960 --> 01:25:07,800
off and our you know where China can can dictate

1241
01:25:07,880 --> 01:25:10,920
the terms of our surrender. I mean again, I don't

1242
01:25:10,920 --> 01:25:16,319
know what that looks like, but I do know that if,

1243
01:25:16,560 --> 01:25:19,760
if it needs to be, we need to be out

1244
01:25:19,800 --> 01:25:22,960
ahead of this. And so I'm fully supportive of the

1245
01:25:23,000 --> 01:25:29,640
President and the Vice President and Bessent and team of

1246
01:25:30,439 --> 01:25:35,680
trying to do these this this this change on our

1247
01:25:35,760 --> 01:25:38,920
terms and not waiting for the inevitable change at somebody

1248
01:25:38,960 --> 01:25:40,279
on somebody else's terms.

1249
01:25:42,520 --> 01:25:44,319
Speaker 1: All right, what's the name of that substack again?

1250
01:25:45,560 --> 01:25:46,000
Speaker 2: Uh?

1251
01:25:46,239 --> 01:25:46,560
Speaker 1: Let me.

1252
01:25:46,600 --> 01:25:52,279
Speaker 2: It's the Eyes of Apilles, but it's just Ron Dodson

1253
01:25:52,439 --> 01:25:56,600
dot substack dot com. R O N d O D

1254
01:25:57,000 --> 01:25:59,920
s o N that's uh dot substack dot com.

1255
01:26:00,039 --> 01:26:02,439
Speaker 1: Yeah, I'll link to it in the in the notes.

1256
01:26:03,600 --> 01:26:06,960
Thank you once again. Hopefully next time we talk it'll

1257
01:26:06,960 --> 01:26:10,800
be we'll have some something to celebrate.

1258
01:26:11,680 --> 01:26:21,199
Speaker 2: Sounds good. Thanks for having me on, Pete H.