Breaking Points with Krystal and Saagar - 4/17/25: US Dollar Weakens, Trump Rages At China, Judge Threatens Contempt, Elon DOGE Fail & MORE!

Episode Date: April 17, 2025

Krystal and Saagar discuss the weakening of the US dollar, Trump rages at China meeting with Vietnam, judge threatens contempt for Trump admin, Trump voter admits he was wrong, Elon admits DOGE saving...s fail, Trump rejected Bibi Iran war demands, Trump insurrection act on April 20th.   To become a Breaking Points Premium Member and watch/listen to the show AD FREE, uncut and 1 hour early visit: www.breakingpoints.com   Merch Store: https://shop.breakingpoints.com/See omnystudio.com/listener for privacy information.

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Starting point is 00:00:00 This is an iHeart Podcast. is irresponsible son, but I have DNA proof that could get the money back. Hold up. They could lose their family and millions of dollars? Yep. Find out how it ends by listening to the OK Storytime podcast on the iHeartRadio app, Apple podcast, or wherever you get your podcasts. Camp Shane, one of America's longest running weight loss camps for kids, promised extraordinary results. But there were some dark truths behind Camp Shane's facade of happy, transformed children. Nothing about that camp was right. It was really actually like a horror movie. Enter Camp Shame, an eight-part series examining the rise and fall of Camp Shane and the culture that fueled its decades-long success. You can listen to all episodes of Camp Shame one week
Starting point is 00:01:03 early and totally ad-free on iHeart True Crime Plus. So don't wait. Head to Apple Podcasts and subscribe today. and seeker of male validation. I'm also the girl behind Boy Sober, the movement that exploded in 2024. You might hear that term and think it's about celibacy, but to me, Boy Sober is about understanding yourself outside of sex and relationships. It's flexible, it's customizable, and it's a personal process.
Starting point is 00:01:42 Singleness is not a waiting room. You are actually at the party right now. Let me hear it. Listen to VoiceOver on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts. Hey guys, Sagar and Crystal here. Independent media just played a truly massive role in this election and we are so excited
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Starting point is 00:02:30 Happy Thursday. Have an amazing show for everybody today. What do we have, Crystal? Indeed, we do. A lot going on. We're taking a look at the markets fed chair, Jay Powell, speaking yesterday. And Mark is not too happy about what he had to say.
Starting point is 00:02:41 President Trump, not too happy about what he had to say. So we'll get into that. We also have the very latest on China's moves and taking a look, which is appropriate, given Sagar being the expectant father over here
Starting point is 00:02:51 at the way this is all going to impact new parents. Those strollers are about to become wildly more expensive than they already are. We've got Richard Henania on the show. We're going to talk to him
Starting point is 00:03:01 about the very latest with Kilmar Abrego-Garcia. We had more movement on the judicial front. We're going to talk to him about the very latest with Kilmar Abrego-Garcia. We had more movement on the judicial front. We also want to talk to him about why he has turned on Trump. He voted for Trump. He has come out publicly and said he regrets that. So we want to get into the way that he is thinking about all of that. We've also got myriad of Elon updates for you.
Starting point is 00:03:20 Big Wall Street Journal expose into his, breeding legion cult, whatever you want to call it. It's very strange. So break that down for you. I might actually ask Richard about that because I'm kind of curious his take on all of that. But in addition, we've been wanting to cover the fact, look, Doge has been very successful at a lot of destruction. Social Security is completely hobbled. All sorts of agencies unable to do their work, even like the collecting of the tariffs guys were doged. And so they couldn't figure out the customs duties as things were coming in. So they've been successful at destroying things. But in terms of the advertised supposed goal of cutting government spending, total and complete
Starting point is 00:04:01 failure. It's like blatantly obvious now there are no real public successes they can point to. So we wanted to take a look at Doge and what they've been up to. We also got some very significant and important breaking news yesterday. New York Times exposing that the Israelis were really pushing the Trump administration to help them with a strike on Iran's nuclear facilities. And at the urging of J.D. Vance, Tulsi Gabbard, and a few others within the administration, Susie Wiles in particular as well, the Trump administration decided not to help them with that
Starting point is 00:04:34 in favor of, at least for the time being, negotiations. So what does that mean? What's the broader picture? This also comes on the heels of a purge of some senior staff over the Pentagon, so there's a lot to put together there. And I'm taking a look at how we may be entering an even more dangerous phase of Trumpism 2.0 as his back is increasingly against the wall and his popularity fades. So I'll be looking at those pieces today. All right. We're excited for that. Thank you all to our premium subscribers. A lot of people signed up with our major announcement of five days a week.
Starting point is 00:05:04 And more importantly, more Ryan and Emily here on the channel, and more content for all of you, as well as exclusives, etc. So if you could help us out, BreakingPoints.com. I also, just to show you to the length that we go for our premium subscribers, you might recall that we have been complaining about the number of advertisements that were placed on our private YouTube link, which we send out to many of our premium subscribers to be able to watch the show ad-free and uncut before that it drops for everybody else. We reached out to YouTube.
Starting point is 00:05:30 Shout out to our YouTube manager, Victor. He has now intervened, and we have helped to keep the show ad-free. So we can't promise 100%, but it should be dramatically less than normal for all of you who are out there. Of course, we're always thinking about you and your experience. Don't forget, though, is that there's not even a chance of being able to watch
Starting point is 00:05:48 with ads if you're watching on Locals or on Spotify. So you have many different options that you have there. So BreakingPoints.com to be able to get access to our premium show, ad-free, uncut, et cetera, as well as support the channel. So with that, though, let's get to the tariffs. And as you said, the market reaction. Chairman of the Federal Reserve, Jerome Powell, making a number of comments that he will not bail out the stock market, even though he believes that inflation and tariff impact on the economy remains very precarious. Let's take a listen. The level of tariff increases announced so far is significantly larger than anticipated, and the same is likely to be true of the economic effects,
Starting point is 00:06:26 which will include higher inflation and slower growth. Despite heightened uncertainty and downside risks, the U.S. economy is still in a solid position. The labor market is at or near maximum employment. Inflation has come down a great deal, but it's still running a bit above our 2% objective. Some people believe the Fed will intervene if the stock market plummets. These are very fundamental changes in long-held, in some cases, policies in the United States. And there's not any real experience. I mean, the Smoot-Hawley tariffs were actually not this large, and they were 95 years ago. So there isn't
Starting point is 00:07:05 a modern experience of how to think about this. Not a lot of experience on how to think about this. But the most important answer was him saying, no, I'm not going to bail out the stock market. Those comments were taken quite literally by the stock market. S&P 500 dropped about 2% yesterday. Futures as of this morning look relatively flat. So we can continue to see that. More importantly, though, is that Trump, it seems, has been betting heavily on the Federal Reserve actually cutting rates. And that is just not what the Federal Reserve chairman is saying as of this morning. As of this morning, as we also know, Donald Trump actually attacked the Federal Reserve saying the Federal Reserve chairman, Jerome Powell, that his, quote, termination cannot come soon enough. But because
Starting point is 00:07:43 of the way that terms and appointments and all of that work, there's still a significant amount of period before any movement on that is even possible, as well as almost certainly some court challenges as they try to do some. There's complicated legal stuff going on, but they're trying to set the ground to be able to remove the Federal Reserve chairman if they want by challenging some long held scrutiny on that law, which could be interesting in and of itself. Yeah, I think it relates to some of these, you know, they fired like, you know, NLRB chair, some of the CFPB, some of these agencies that are supposed to have independence some distance from the executive's whims, that's being challenged in court. So that
Starting point is 00:08:19 could relate to what is going on here as well. But, you know, I mean, from the perspective of the Fed share, right, you are being put in a total bind here because on the one hand, yeah, the tariffs are very likely to slow growth. In fact, I think we already know the tariffs have slowed growth. You can see it in real time what's happening. So that would lend itself towards, OK, well, let's cut interest rates to try to get the economy moving. On the other hand, the tariffs are inflationary. So cutting the interest rates might help further fuel inflation. And so, you know, this potential stagflation bind really leaves the Fed in a very difficult place. And what Jerome Powell is saying is, hey, for now, we're just holding where we are. Yeah, exactly. And so let's go ahead and put A2 up on the screen, because there's been major movement here in the United
Starting point is 00:09:04 States in terms of how this trade war with China is positioning. We're going to talk next about China and about some of the consumer environment where we're all likely to experience quite a bit of price hikes. But it is becoming clear now that NVIDIA is the, quote, biggest U.S.-China bargaining chip. I previously had flagged this story. I see what you did there. I see. bargaining chip. I previously had flagged this story, and so I wanted to come back to this, is that previously, Jen Tseng Wong, the CEO of NVIDIA, had paid about a million dollars to attend a Mar-a-Lago dinner. At that dinner, he apparently convinced either Trump or somebody around Trump
Starting point is 00:09:36 not to put export licenses on those H20 chips that NVIDIA had developed specifically to be liable with these export controls and be able to ship to China, approximately $5.5 billion market segment for NVIDIA. Well, it came out overnight that as a result of the tariffs, and despite some of the previous promises that they had made to NVIDIA, the United States would be slapping export controls on those H20 chips. Now, immediately, I just woke up to the news this morning, Crystal, that Jen Tseng, not here in the United States, he's in China. He actually has just met with the Chinese vice premier and with the CEO of DeepSeek, trying to assure them that they all still want to do business. But it does tell us where, you know, to the extent that we have any real leverage over China, it's not really about consumer imports and stuff that they necessarily need.
Starting point is 00:10:20 And we're going to talk a little bit about their consumer, like the injections that they're putting in, in terms of their support. A lot of this high-tech manufacturing and design specifically is really where things are landing for what we are trying to do with them. The question is, of course, about buckling, about technology transfer, and more. But the reason why it's important also for the pressure here in America is that it sent NVIDIA shares sliding with the overall pressure right now on the consumer, the retail environment. So it really does show us that while we've had almost 60% reduction in overall US imports just in the last two weeks, extraordinary, genuinely extraordinary. Nobody has any idea how that will even show up in the price environment. With the Federal Reserve chairman, the NvidiaVIDIA strategy, the chaos and everything
Starting point is 00:11:05 moving back and forth, you can just see that markets are very uncertain right now, which is part of what you see so much of the wild volatility happening. Right. So just to give a little bit of background here, you guys may know some of this. So under the Biden administration with Treasury Secretary Janet Yellen, she said quite directly that the point of the export controls that the Biden administration put on the sort of like top shelf chips was to slow China's development, technological development. And perhaps it had some impact, but deep part of what the deep seek innovation really proved is that they were in a lot of ways able to either directly circumvent or innovate around that particular export control. And again, that was for sort of the top shelf, like top of the line, most advanced chips. So NVIDIA produced this H20 chip,
Starting point is 00:11:58 which was meant, as Sagar mentioned, to get specifically around those export controls, to be sort of like a lower grade, like, okay, well, this isn't the top shelf stuff. We can still sell this thing. And so that's why they were doing big business in China with regard to this particular chip. Now, China does have their own chip capacity, especially when you're talking about this level, not the highest of the highest level chips. It's largely through Huawei. And are they exactly as good as the H20? You know, there's some indicators
Starting point is 00:12:27 that they aren't quite as advanced as the H20 chips, but they do have some of their own domestic chip capacity. And also what we learned under the Biden administration is that this did not hobble them nearly as much as the Biden folks were hoping that it was ultimately going to hobble them. So in any case, you know, this was a big hit to NVIDIA stock. NVIDIA, one of those magnificent seven, huge impact in terms of our overall stock market. So that was part, in addition to the Jay Powell comments, that was part of what has been going on in the markets. Yeah, exactly. So let's go ahead and then put the next one up on the screen so people can take a look. You can see the quote, the US and China trade fight is, quote, slamming stocks, sending gold to record high. The gold market
Starting point is 00:13:05 has been absolutely insane. It's like I've seen a price target there of almost $4,000, which is absolutely extraordinary. But the reason why that we're returning or starting off on this is just to show people that NVIDIA, because remember, it makes up so much of the S&P 500, that if it's going to be a major bargaining chip in the Trump administration strategy, that if we're going to see stocks sink there on top of the overall global strategy that they're putting into place, retail pressure, just this morning, much of the pharmaceutical tariffs are, you know, be shaking out in the markets as well as some other regulatory action. United Healthcare stock down by like 11%. Yes, I know, funny, like meme-wise, but it's actually
Starting point is 00:13:45 a huge segment of the overall markets. We have sector-by-sector decline in everything, which just makes it so that there is huge pressure on the US economy. If we do start to see mass layoffs in the next 90 days or so, as Ryan Peterson predicted, that will put a tremendous amount of pressure on all of these different, in terms of the regulators, on the government, and more. And the Chinese are absolutely buckling up. So we just want to lay the groundwork for how things look over here in America. That's the NVIDIA front. There's also the dollar. This has been a major story as well. Let's put this up there on the screen. Quote, what the weak dollar means for the global economy. And this was not actually expected to
Starting point is 00:14:26 see such a dramatic decline in the dollar relative to every other global currency. But what they point off here is that the, quote, unexpected weakening of the dollar is suddenly becoming the rest of the world's problem too. Because for foreign sellers, all of these goods, cars, cognacs, Scottish tweed, the dollar steep slide is a double whammy. It's compounding losses caused by President Trump's import levies. So the central banks around the world, they either need to stop the rapid strengthening of their currency, cut interest rates more aggressively to try and lower their overall target versus the dollar. But that will have major macroeconomic effects in their own countries. Also, of course, the dollar decline now means that currently has slipped 8% per year, which is the worst start to the year in the index's four-decade trading history. Just to put into perspective how insane that is. It's not just lack of faith in the
Starting point is 00:15:20 dollar. It's really about U.S. government and trade. And then when imports are also being reduced, that will, of course, mean that when there's a weaker dollar, it's going to drive up the price of how much we're able to buy and exchange globally. So this stuff has major ramifications for reserve currency purposes, for whoever is still able to do business with importers. But then more importantly, it can cause a global shock effect on interest rates where you could potentially see lower interest rates in other countries, while our sage in the Federal Reserve is like, oh, I'm going to bide my time, which also has cascading effects for our economy. None of this is good, is really what I'm trying to say. Yeah. And it's emblematic of a broader trend.
Starting point is 00:16:03 Oh, wow. The ECB just cut rates. There you go. It's from the European Central Bank. There you go. Literally just as wishful thinking. Part of a broader shift away from the U.S. I mean, that's when you see this, when you see the unusual market in terms of U.S. treasuries. You know, the U.S. and the dollar and treasuries have always been the safe haven. No longer. And so now these sorts of market responses with regard to, you know, our currency
Starting point is 00:16:25 in particular, this is more like what you would expect from an emerging market, like these sorts of dynamics playing out. So, you know, you don't want to oversell it, right? The U.S. is still, you know, a global power. Maybe not the global power, but a global power. And, you know, the dollar is going to continue to be central. We're not de-dollarizing like today. But this shift away is probably the most significant thing that we have seen to happen. And that also plays into your mentioning the price of gold skyrocketing. So the implication is instead of the flight to safety being like U.S. Treasury, as it has traditionally been, instead maybe it's things like gold.
Starting point is 00:17:06 There you go. All of this is important. And let's get to the next part here. This is A5, please, just to show people about some things that are happening right now. Quote, nearly 900,000 fewer people went to the United States in March as the cross-border travel continues to go down. One of the worst year-over-year drops recorded outside of the COVID-19 crisis. A lot of this is basically fear from a lot of incoming U.S. visitors, but a lot of it is Canada, actually, and specifically over the trade war as retaliation
Starting point is 00:17:36 for the initial trade comments by the Trump administration. The irony, of course, is that the vast majority of goods remain at the overall zero tariff rate under the USMCA. But the initial shaking from the Trump administration and the 51st state language has made it so there's been a precipitous decline. We are entering into summer territory, traditionally a time where there's a lot of Canadian snowbirds who apparently like to come down to America. And yeah, not good. If you run a business in northern New York or Orlando, any of these other places, I remember looking at some of the top Canadian destinations in America. I think Seattle is also up there. There's a lot of jobs and economic activity that generally rely on this. And this just gets to my overall problem with the Trump administration,
Starting point is 00:18:23 is that they both force people to experience consequences with none of the upside. So if we're going to have tariffs on the Canadians and say they're ripping us off, then we should, of course, see a major stimulus to the businesses, which are supposedly getting ripped off, as well as to make sure that there's no pain for the people who do rely on it and the after effects. None of that is happening. Of course, it's happening in China, which I'll get to in a little bit, but we haven't seen that. We're going to talk about strollers. We're going to talk about groceries and all these other things. There's no relief or PPP program that's currently being even floated by the administration and or by the Republican Congress, which in six months will soon pass a bill. At that point, you could have mass layoffs and bankruptcies at that point. If we're thinking about a September passage, good luck to a lot of summer
Starting point is 00:19:09 tour operators or others. Sure, are they the most critical part of the economy? No, but there's a lot of people who pour their whole livelihood and all their business money into this. And so that's my, you know, major problem is even though we have the same tariff rate as we did the day that Donald Trump basically went into office effectively for most of the goods that move across the Canadian border. He still has just invited this thing with Canada. And now all of these businesses are going to suffer the consequences and not get any bailout or anything. That's right. Yeah.
Starting point is 00:19:34 And, I mean, tourism is a significant part of the economy, especially if you're talking about, like, Florida, you know, California. These are areas that rely heavily on tourism as a really important industry for their economies. And that 900,000 number, that's just with regard to Canadian border crossings. If you look at the number of flight bookings coming out of Europe, I mean, across the board, it's all dropped. And it certainly has to do significantly with the tariffs and the trade war. It also has to do with immigration policy. Because you have stories like there was a Canadian actress, Jasmine Mooney, who was held by ICE for 12 days while she was just trying to like renew her work visa. And there are other stories like that of people who are trying to come and just like visit as tourists or go speak at a lecture coming over from Europe who are being searched and detained.
Starting point is 00:20:22 And people see those stories and are like, I think I'll go somewhere else on my vacation. I'm good. I don't really want to risk all of that. The EU has told their diplomats, you know, to bring a burner phone instead of their normal smartphone. These are the sorts of things that are going on. And so it's also not good for the tourism industry. And that's going to have another negative effect
Starting point is 00:20:43 on the economy and impact businesses certainly significantly. And we talked yesterday, Emily and I, I think it was United Airlines that's already, they've put out two separate guidance, like, you know, earnings guidance based on like, we don't really know what's going to go on. And they're already cutting back flights for the summer. They're already cutting back flights for the summer based on what we already know about the economic outlook. So not good. That is not good.
Starting point is 00:21:08 It also is softening economic demand. You actually went back and was reading a little bit about the airline industry. 2009 was brutal. 2009 and 2010 were horrible years for the airline industry because of the overall fallout. They were thrown as many incentives as they possibly could. And especially if there's a major pullback, the top 10% of Americans are the people who spend the 50% on consumer spending. So even if they reduce their amount of spend there, the airlines are going to take a massive haircut because they were making all their money. They're not making money on economy. They were mostly making their money on this premium economy and business class seats,
Starting point is 00:21:42 which were selling out. So if those people stop booking or even if they fly economy, oh my God, they're going to be devastated in terms of their earnings. Last thing on this front before we move to China, let's go to A6, please. This is on Albertsons. This is very interesting from our friend David Dayen. Albertsons sent a letter to all of its suppliers saying, quote, it is not accepting cost increases due to tariffs, which means that the suppliers are going to have to raise prices on Albertson's competitors that have less market power. David Dayen says, quote, this is one way that Trump's tariffs entrench monopolization. Interesting point, actually. I hadn't thought about it that way. But what it does show you, again, is if you have a general policy, let's say here, about alleviating cost increases due to
Starting point is 00:22:26 tariffs and making sure that there are government incentive programs and others to make sure that grocery prices across the board don't get propped up and that these suppliers don't necessarily have to go out of business. Then you don't have to have Albertsons and all these other people gaming the system. It's actually a good example, too, what we've talked about. Walmart and all these people, yeah, they're going to survive, okay? And frankly, those are the people who are most responsible for pushing for a lot of this free trade nonsense with China, PNTR with China, and a lot of these cheap consumer goods. But their market power is such that they'll make it. It's really, you know, as they pointed out here, the suppliers, well, they have the leverage over, let's say, smaller grocery chains or other places.
Starting point is 00:23:09 And that's probably rural, you know, other areas which are not able to bargain. So then you'll see a cost increase overall. And then what happens? They're going to go bankrupt and Albertson's going to buy them, right? Yeah, no, that's exactly right. And the overall structure, especially with it being just directed by the singular person of Donald Trump, of course makes it so the big guys are in a position to get their benefits, get their car balance, pay a million dollars, go to their Mar-a-Lago dinner or whatever so that they can ride out the storm. You know, I talked the other day about this woman who has her baby, her busy baby, Matt's. And so she just, Walmart just picked
Starting point is 00:23:42 up her product for a retail, for someone who's, you know, a producer making something to get it into Walmart. Like that's like the holy grail. But Walmart accepts, okay, we will take them at this price. And that's it. She can't negotiate with them anymore. That's done. So when you talk about now the tariff is, I don't know, it's like 200%.
Starting point is 00:24:00 He just keeps increasing it. But at a certain point, at this point, it's like, it doesn't matter what the tariff is. It's high enough that for someone like the busy baby lady, it's over. She can't bring in her products. But let's say that she was able to figure out the cash to pay the tariff and get her product over here. She's the one 100% eating the cost. So earning a huge loss on this product that, you know, Walmart has agreed to buy at, I don't know, $25 or something like that. And now she's having to pay, let's say $50 just to get this thing over here. Like it's, she is the one who's going to get screwed. Walmart has all the power in the relationship and they don't care whether they have this mat in their store or not.
Starting point is 00:24:39 They don't care if she goes under. So, they could care less. So the small business, the media business size businesses, they are going to be totally and completely screwed if this is not lifted like immediately. I mean, we're talking they have months of runway to be able to make it through and ride out this storm and not much longer than that just by the nature of these businesses. Unfortunately, that's very true. Camp Shane, one of America's longest-running weight loss camps for kids, promised extraordinary results. Campers who began the summer in heavy bodies were often unrecognizable when they left. In a society obsessed with being thin, it seemed like a miracle solution. But behind Camp Shane's facade of happy, transformed children was a dark underworld of sinister secrets. Kids were being pushed to their physical and emotional limits as the family that owned Shane turned a blind eye. Nothing about that camp was right. It was really actually like a horror movie. In this eight-episode series, we're unpacking and
Starting point is 00:25:43 investigating stories of mistreatment and re-examining the culture of fatphobia that enabled a flawed system to continue for so long. You can listen to all episodes of Camp Shame one week early and totally ad-free on iHeart True Crime Plus. So don't wait. Head to Apple Podcasts and subscribe today. The Medal of Honor is the highest military decoration in the United States. Head to Apple Podcasts and subscribe today. it's for the families of those who didn't make it. I'm J.R. Martinez. I'm a U.S. Army veteran myself, and I'm honored to tell you the stories of these heroes on the new season of Medal of Honor, Stories of Courage from Pushkin Industries and iHeart Podcast.
Starting point is 00:26:37 From Robert Blake, the first black sailor to be awarded the medal, to Daniel Daly, one of only 19 people to have received the Medal of Honor twice. These are stories about people who have distinguished themselves by acts of valor going above and beyond the call of duty. You'll hear about what they did, what it meant, and what their stories tell us about the nature of courage and sacrifice. Listen to Medal of Honor on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts. DNA test proves he is not the father.
Starting point is 00:27:11 Now I'm taking the inheritance. Wait a minute, John. Who's not the father? Well, Sam, luckily it's your not the father week on the OK Storytime podcast, so we'll find out soon. This author writes, my father-in-law is trying to steal the family fortune worth millions from my son, even though it was promised to us. Now I find out he's trying to give it to his irresponsible son instead, but I have DNA proof that could get the money back.
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Starting point is 00:27:58 podcast on the iHeartRadio app, Apple podcast, or wherever you get your podcasts. Okay, let's move on to China. We're going to break some of this down. It's some fascinating stuff happening geopolitically. We'll start with Xi Jinping. As I mentioned in our last show, visiting Hanoi in Vietnam, we have some video showing this. Keep in mind, it was released by Chinese state propaganda, but you know, it's still important. It's still a real video. So let's take a look. And we can put it up there on the screen. You could see Xi being, you know, all the communist flags waving as he is visiting the streets of Hanoi. This is important because Vietnam is our number eight trading partner, a key part of the
Starting point is 00:28:35 pivot to Asia of the Obama administration, and actually subsequent even with the Trump tariffs, was a basically finger wagging at Nike and at numerous other retailers saying, listen, no China anymore. You have to manufacture elsewhere. They said, okay, we'll go to Vietnam. We gave them a lot of money to go to Vietnam. They built up supply chains. Now, I will be the first to admit that China absolutely took advantage of transshipping via Vietnam. And they, of course, were trying to gain the advantage, et cetera. But Vietnam was a critical U.S. trading partner, like I said. Number eight, very, very little behind Taiwan. That's how much I'm talking about their overall effect on the U.S. economy.
Starting point is 00:29:12 On top of that, Vietnam, despite the fact that we destroyed half of their country, has very favorable attitudes to the United States. They have, remember, they have beef with China over the South China Sea and a few of the island chains. These are not necessarily countries with super close relations in the last 12 years or so. So to see that, it's a bit of a problem. And actually, even Trump has paid attention to this. Put the next one, please, up on the screen. Quote, Trump grumbles about China's lovely meeting with Vietnam, saying they are discussing how to screw the United States of America. That's true. That's actually true. Because there's a reason that Xi went to Vietnam and Cambodia
Starting point is 00:29:50 and is going to Malaysia next. These are all areas with critical U.S. trade relationships. A lot of U.S. textiles move through that area. We are not seeing, you know, it's not even just about good relations. Don't, you know, forget crystal. Vietnam was one of the first countries to say, okay, fine, no tariffs, zero. And then they got nothing. They still got a tariff imposed on their goods. Obviously that's been a 90 day off, but you know, they're not stupid. They need to make money. And so in the interim period, they're like, are we really going to have a 90 day agreement? I mean, look at Japan, Japan, their economic minister flew here yesterday.
Starting point is 00:30:27 They met with Scott Besson. They met with Donald Trump. And Trump was like, yeah, there's been a great, great movement. There's nothing that's been announced. That's Japan. By the way, we have a very well-architectured trade deal with Japan negotiated in 2019 with Shinzo Abe. If you want to update that, it's really not difficult. So if it's going to take this long just to do Japan, we have 70 other countries that we're supposed to do. Way more complex trading relationships than we do with anybody else. This is a G7 nation. It's very easy actually to hammer that out. They have good statistics, et cetera, rules we can trust, currency. These are all simple actually to hammer out in an agreement. What are you going to do with all these other countries which you slapped all these huge tariffs on?
Starting point is 00:31:06 In the interim 90 days, where do you think they're going to go? They're going to China. Same with the European Union. They just negotiated all that tariff exclusion with some of the cars, pumping away for BYD and Xiaomi to have more market entrants over there. So there's big problems that we have right now. Yeah, that's right. And I even saw Fox News grumbling about, like, hey, we thought we were going to get 90 deals in 90 days. We don't have one.
Starting point is 00:31:27 I mean, that's so obvious. Right. But I mean, that Fox News is even saying that is incredible. And with regard to this, she didn't come away empty handed from this trip to Vietnam. They apparently signed 45 different agreements on issues like supply chains and railways. And it just underscores like for them, they have one big problem, our, like, trade war with us and the loss of our very large and wealthy market, right? Our consumers are very powerful. We spend a lot of money. There's no doubt about that. That's a significant problem. They have the entire world that they can go to. They can use their own, you know, government programs to help subsidize and support their own industry. They, of course,
Starting point is 00:32:07 have their own massive and burgeoning market. In fact, their exports as a percent of their GDP has been going down as their own domestic market has been increasingly powerful, and they've been turning towards that. And our percent of their exports has also been going down. So yes, of course, we are incredibly important to China's economy. China is incredibly important to our economy. Decoupling this relationship is going to involve severe pain on both sides. But their problems are, number one, I think, more straightforward. They have fewer problems to solve because they didn't launch a trade war against the entire world like we did. And they are smarter. Like, they have been more strategic over long periods
Starting point is 00:32:51 of time than we have. And so I think our, you know, even the Financial Times are saying they're set up to, in a much better position than we are at this point. Yeah, this is, I mean, what did I just talk about in our A block about, oh, we got to wait on Jerome Powell. There's no Jerome Powell in China. The CCP's like drop rates. Like, okay, got it. You know, same with the raising rates. Done. Now, I'll show you guys. For example, already, you know, we're seeing major price increases hit here in the U.S. Go to B3, please. This is actually rocketing around new parent group chats, just like somebody like me. New up a baby price. Now, keep in mind, look, this is an expensive stroller. So let's keep that in mind. That said, the price increase from
Starting point is 00:33:31 expensive to ultra expensive is still not great. And this company has been done millions and millions of dollars in sales. Well, their flagship strollers are all increasing by hundreds of dollars as a result of these tariffs. And these are actually the first, I would say like beloved product that I have seen on social media where organic consumers are sharing it and are really complaining. So you could see there are multiple $100 increases
Starting point is 00:33:54 that were there. They also sent out up a baby, an email to all of their users saying, listen, we are absorbing as much of this tariff price as we possibly can, but there is just no way for us to be able to do business without raising a lot of these prices. And they're going to go into effect very, very soon. Our own friend Derek Thompson flagged this as well,
Starting point is 00:34:14 about how much of the child accessories are manufactured in China. It's like something like 97%. I have it pulled up. Yeah, so he says, the business press has been good at reporting on China's global leader in smartphone and electronics manufacturing, but consider also, as a share of all U.S. imports, China accounts for 99% of child safety seats,
Starting point is 00:34:34 96% of toys for pets, 95% of cooking appliances, 93% of coloring books for children, 88% of microwave ovens, 70-plus percent of toys intended for children, 88% of microwave ovens, 70 plus percent of toys intended for children under 12. Yes, American AI, electronic smartphone, and clean energy companies are not set up to thrive in a protracted trade war, but ordinary parents of young kids will be among the hardest hit. So many of the things that new parents buy for their kids and have to buy, you know,
Starting point is 00:35:02 your crib, your stroller, like the car seat, all of these things. These are, you know, must haves. These are not like luxuries. So much of that, not to mention the, you know, toys and things you get for their Easter baskets and things that go under the Christmas tree. So much of that comes from China and it's already extremely expensive to be a new parent and all that that entails. So new parents with young families are going to be very hard hit. Yeah. I actually, by the way, did do some research and there's really no made in America stroller. Like there's like one-off ones, but you know, stuff breaks. Crystal, I'm sure you can tell us about that. And you need new parts. It's like, so where are you going to come from? Oh, shocker. Over 93%. Same with, luckily I bought all this stuff
Starting point is 00:35:43 before these tariffs come into place, but if you're not so lucky, what are you going to do? The other thing is, as I have discovered, is there's a thriving secondhand market for a lot of these things like bassinets, strollers, car seats, et cetera. Well, this is just going to do the same thing that it's done to the cars, is that while, yes, you could still buy used pre-tariffed goods, well, what do you think supply and demand is going to show? You're going to see an increase in the used stuff. So you're actually going to have to pay more, no matter if you're buying new and or if you're buying used. And it'll probably restrict the supply because of the overall number of imports, which will only further skyrocket the amount of
Starting point is 00:36:17 the prices here. And, you know, all of this is allegedly, you know, for the benefit of the country, I would say, you know, my own bias. Otherwise, you probably want to make it easier for parents to be able to have children. The law, you know, I don't know if people know this. There's literally a law. You have to have a car seat to be able to leave the hospital. That's right. It has to be installed. And you don't have a choice. And don't get a used car seat. Right. That's another thing. Yes. Get a new stroller. Don't get a used car seat. You need to get a new car seat. 97% of baby strollers, by the way, just looked it up, come from China. Yeah, and that's what I'm saying.
Starting point is 00:36:46 I actually tried to find one. I was like, hey, let's see if there's anything. Made in America stroll, made in America car seat. I mean, the best you can get are some of these that are designed in America, but that's not the same thing. You know, like Up a Baby, Duna, or any of these other ones. But there's some Swedish companies as well as some German companies. But guess what? We also have tariffs on those countries, right? And a lot of them are already more expensive. So you know
Starting point is 00:37:10 that, you know, it's like don't screw with moms. That's one of those where there's a lot of moms out there, a lot of Facebook groups, Instagram, and more where I actually guarantee that that will probably reach more and have more political impact than a lot of the other stuff that is happening. Yeah. Which is important for people to understand. Back in the George W. Bush era, they called them like security moms. Yes. Now they're going to be like tariff moms.
Starting point is 00:37:32 Yeah, tariff moms. Anti-tariff moms, free trade moms. Yeah. I mean, think about Facebook Marketplace or a lot of these other places. People are already skating by and now they're just going to cost even more money. $100, $300, $400, that's a lot of money. That's a significant portion of the average American's paycheck. And then we have the rise of this buy now, pay later debt, which we're already seeing. Credit card minimum payments
Starting point is 00:37:54 actually have skyrocketed just in the last two months. So we can see that there's significant pressure on consumer households. All right. And then last thing I wanted to flag here is from the Chinese market and how they are helping out their own customers. Show this on, please, on the screen. So visitors to Taobao, which is one of the largest online shopping platforms in China, are now being offered steep discounts on products which are normally exported to the United States. For example, rice cooker from $42 to $25, 85-inch TV from $500 instead of $639. Offers are popping up all across online apps. Quote, the first thing buyers are seeing is a section of goods that's, quote, subsidized by the nation. Basically, the Chinese government bailing out their own domestic online
Starting point is 00:38:40 sellers to protect their manufacturers, move goods, move inventory, and keep all of the supply chains and everybody else still employed, make sure that we don't see the freeze that's happening here in America. So that's what a functioning state actually looks like. They have a bailout. They have the ability to put pressure on all of their companies. They can drop their interest rates. They can manipulate their currency. They can do all of these different things. They're prepared for hundreds of billions of dollars in domestic capital injection into their economy. And meanwhile, over here, we've got basically none of that.
Starting point is 00:39:09 Yeah. And it looks like they're painting it as like a patriotic project to like upgrade your washing machine or your like. No, they are. And guess what? People probably will do that. You know, they, of course they will. They're under, like they feel as if they're under attack. We are just, we're literally the people who instigated, right?
Starting point is 00:39:23 So of course they're going to be able to suffer if they want to. Also, let's compare the, you know, the history of both of those nations. Who has more, longer, and capacity of suffering? I wouldn't put my money on the most consumer-obsessed country in the entire world. Also, what are we suffering for? That's what I'm saying. Why? Nobody, like, people don't want this.
Starting point is 00:39:39 It's not popular. It's not like we're behind this project. So there's no unified, like, Americans are ready to, you know, pay double at Walmart or whatever. No, we're like, why are you doing this to us? Stop it. So, yeah, they're also in a in a much stronger position vis-a-vis their population and their support of the Chinese government's direction here. There you go. All right. Let's get to Richard Hanania, standing by. Camp Shane, one of America's longest-running weight-loss camps for kids, promised extraordinary results. Campers who began the summer in heavy bodies were often unrecognizable when they left.
Starting point is 00:40:16 In a society obsessed with being thin, it seemed like a miracle solution. But behind Camp Shane's facade of happy, transformed children was a dark underworld of sinister secrets. Kids were being pushed to their physical and emotional limits as the family that owned Shane turned a blind eye. Nothing about that camp was right. It was really actually like a horror movie. In this eight-episode series, we're unpacking and investigating stories of mistreatment and reexamining the culture of fat phobia that enabled a flawed system to continue for so long. You can listen to all episodes of Camp Shame one week early and totally ad free on iHeart True Crime Plus. So don't wait. Head to Apple Podcasts and subscribe today.
Starting point is 00:41:02 The Medal of Honor is the highest military decoration in the United States. Recipients have done the improbable, showing immense bravery and sacrifice in the name of something much bigger than themselves. This medal is for the men who went down that day. It's for the families of those who didn't make it. I'm J.R. Martinez. I'm a U.S. Army veteran myself. And I'm honored to tell you the stories of these heroes on the new season of
Starting point is 00:41:29 Medal of Honor, Stories of Courage from Pushkin Industries and iHeart Podcast. From Robert Blake, the first Black sailor to be awarded the medal, to Daniel Daly,
Starting point is 00:41:40 one of only 19 people to have received the Medal of Honor twice. These are stories about people who have distinguished themselves by acts of valor, going above and beyond the call of duty. You'll hear about what they did, what it meant, and what their stories tell us about the nature of courage and sacrifice. Listen to Medal of Honor on the iHeartRadio app, Apple Podcasts, or wherever you
Starting point is 00:42:05 get your podcasts. DNA test proves he is not the father. Now I'm taking the inheritance. Wait a minute, John. Who's not the father? Well, Sam, luckily it's your not the father week on the OK Storytime podcast, so we'll find out soon. This author writes, my father-in-law is trying to steal the family fortune worth millions from my son, even though it was promised to us. Now I find out he's trying to give it to his irresponsible son instead, but I have DNA proof that could get the money back. Hold up. So what are they going to do to get those millions back?
Starting point is 00:42:32 That's so unfair. Well, the author writes that her husband found out the truth from a DNA test they were gifted two years ago. Scandalous. But the kids kept their mom's secret that whole time. Oh my God. And the real kicker, the author wants to reveal this terrible secret, even if that means destroying her husband's family in the process.
Starting point is 00:42:49 So do they get the millions of dollars back or does she keep the family's terrible secret? Well, to hear the explosive finale, listen to the OK Storytime podcast on the iHeartRadio app, Apple podcast, or wherever you get your podcasts. So we had a fairly significant court development yesterday in the case of Kilmar Abrego Garcia. He is that immigrant who was wrongly deported to El Salvador and specifically to Bukele's torture dungeon in El Salvador. There, of course, was a question very early on with regard to how all of this went down in the Alien Enemies Act, where the planes were in the air, and a judge,
Starting point is 00:43:26 Judge Boasberg, said, you have to turn them around. You cannot do this. And the administration went ahead and flew those planes anyway. So yesterday, let's put this up on the screen, Judge Boasberg found probable cause to hold the administration in contempt of court for defying his order to turn around those planes. One of those planes had Abrego Garcia on it. Some, I think, 283 is the number of migrants that were on those three planes total. And he is demanding new details in order for officials to purge their contempt, meaning basically to rectify the situation. So this is different. They haven't been found in contempt yet, but this appears to be building in this direction if the administration continues to fail to comply. So joining us to talk
Starting point is 00:44:12 about this development and this entire situation with El Salvador and Bukele and the Trump administration denying these migrants any sort of due process, we've got Richard Henania. He is a political commentator. He is the author of a number of books, including The Origins of Woke, and also has his own sub stack. Good to see you, Richard. Good to see you, Richard. Glad to be here. Yeah, of course. So just give us your top line, like what you have thought about this whole situation, and especially the way the administration is insisting that even after they admitted that they made an error with regard to Kilmar Abrego-Garcia, now they are absolutely refusing to do anything to correct that error.
Starting point is 00:44:51 And Stephen Miller has gone so far as to even deny that it was an error at all in the first place. Yeah, so there are these two cases proceeding on parallel tracks. There's the Abrego-Garcia case, which is getting a lot of attention. There's also, don't forget, the Venezuelan case where they shipped off those hundreds of Venezuelans to El Salvador, the country that they weren't from. And that's where that's the case where they are. There's probable cause to find them in contempt. So we're going to have a couple of weeks here where the administration is going to come back. Either they're going to be able to say we've we've answered your question satisfactorily, satisfactorily, or there could be a kind of
Starting point is 00:45:26 going forward with a criminal contempt charge. Yeah, the Abrego Garcia case, this one is even more frightening. I mean, both of them involved disobeying a court order, but this was the Supreme Court. And they went to the Supreme Court, and the Supreme Court said, you have to facilitate his return. Now, the lower court had said, you have to effectuate his return. And the Trump administration has gone and tried to read that very, very narrowly. Now, so facilitate maybe is not as extreme as effectuate. There's a reason the Supreme Court preferred one phrasing in that 9-0 decision over the other. But I think everyone agrees that they have to do something. They can't just sit there and do nothing. And the administration argues that they've tried to argue at the lower court level that basically if he shows up at a port of entry
Starting point is 00:46:13 by himself, they'll let him in. Now, what's ridiculous about all this is they are kind of teasing the court system. I mean, somebody there's a there's a tweet that this that the plane of Venezuelans left after the judge's order. And then Bukele tweets, oopsie. And I think Rubio retweets it. And then after that, right, as this is going on, Bukele comes to the White House and they're sitting there. And, you know, whatever facilitate means he's sitting next to you. You can ask him in a serious way. You can try to do something.
Starting point is 00:46:46 And they don't. They sit there. They giggle about it. Bukele says, what am I supposed to do, smuggle him into the United States? Like, no, this is part of an agreement. The US paid you. And now Senator Van Hollen from Maryland goes down to El Salvador. And he says that the vice president of the country tells him that basically, what are
Starting point is 00:47:04 we supposed to do, smuggle him in? And he says, no, Pam Bondi said that if you guys released him, you can go back. So they're playing this game. They are trying to interpret it very, very narrowly. What's frightening about this is they go back and now they just deny what the Supreme Court says. Now they now Stephen Miller and Donald Trump, when they're talking to the press We'll say we won 9-0. I mean, it's just there's kind of not a connection to reality. So a lot of things are at stake here. There's the principle that the president cannot just take someone off the streets and send them
Starting point is 00:47:35 to a third world labor camp. They're floating the idea now that they do it to U.S. citizens. We've seen people who are long-term permanent residents being picked off those streets because they've written the wrong op-ed or had the wrong ideas about U.S. policy towards Israel. And so, you know, what's next? We have an administration that doesn't tell the truth, that will lie about basic things. They'll say a guy is a convicted MS-13 member when he's not. They'll say they won at the Supreme Court. While they lost, they don't see citizenship as a bright line. They don't see any free speech respect for permanent residents. And so, yeah, I think this is probably the most important thing going on in politics right now because the question is, what are the limits here? And what is going to
Starting point is 00:48:17 be the pushback that stops them? Right. Richard, how does this fit? So let's put, let's say, C2 up there on the screen. This was a tweet from J.D. Vance that I saw you reacting to. This was somebody who was criticizing his initial defense of the Abrego-Garcia deportation, who was Jesse Singles saying, I hate the smug, selfish, or bullshit. I know I'm right, and people must be dumb or immoral to disagree with me. It's easy to go through life because when you think you've never have to seriously about why your worldview is justification for the mass invasion of the country my ancestors built with their bare hands. Now, I know you've criticized some of this type of rhetoric and others in the past, but break down some of your analytical frameworks about the Trump administration, low human capital,
Starting point is 00:48:58 and how this all fits into that. So, J.D. is obviously not low human capital. He wrote a very well-regarded book on his life. He went to Yale Law School, a very selective institution. He's kind of a tragic figure at this point. He's obviously very smart, but he's part of a movement and he has ambitions and he became vice president because he's part of a movement that has the characteristics of a cult of personality at this point. And so J.D., it's kind of fascinating to watch him. He usually doesn't just straight up lie, but he always begins his statements with a criticism of the media, somebody like Jesse Singel or the Biden administration and a praise of Trump, and then kind of goes off in this direction where he's not directly answering the point. And I think that that's what makes him a tragic figure. I think
Starting point is 00:49:48 he's a smart person who wants to be respected by kind of the intelligentsia people like us. But he's working for a man who I mean, we've all seen it. We've seen kind of what Trump is at this point. It's been reported and I've heard this from people firsthand that when you go in to apply for a job at the administration, one of the first things they ask you is, do you think Trump won the 2020 election? And that's been reported in the media, but I've heard it's actually worse than that because they go and they say, how big do you think the victory was? Oh, my God. There's really no answer you can give other than all 50 states because Trump is now saying he would have won all 50 states if it wasn't for vote fraud. And I've always been encouraging the media when you have these people on these Sunday programs, Besant and these people like this, ask them if Trump won California.
Starting point is 00:50:35 They will not contradict him. There is no way they'll contradict him. Stephen Miller might say he won California. J.D. Vance might deflect and start blaming the media for asking a gotcha question. But these are the dynamics that we're dealing with. And it touches on everything. So this morning, Trump says Jerome Powell can't be fired quickly enough. And the people who know anything about the economy say, you think tariffs are bad for the stock market? Wait until we go after Fed independence. And from everything we've seen, there is just nobody in the room who will say anything other
Starting point is 00:51:04 than yes, sir, yes, sir, yes, sir. The movement has been purging everyone who has a spine or has a kind of personal integrity who will stand up to this man. And so this is why kind of the possibility space of the things that could happen. Sorry to be so dark, but I think the last month or two have really been clarifying about what's at stake. I agree. No, I think it's fair. I agree. You tweeted something this morning. So you wrote a great piece that I thought was really
Starting point is 00:51:28 insightful called The Based Ritual about the social dynamics within this movement. And these are not like random French people on the internet anymore. These are people that, as you point out, are staffing J.D. Vance. They're staffing Josh Hawley. They're increasingly in important, significant positions throughout the administration. And, you know, about that based ritual direction and the way that everybody's just sort of competing to be increasingly, you know, countersignaling how like how bad they are and how racist they are and how sexist they are. And no one wants to outdo or be outdone by the other people in the group. You tweeted, it's funny that Trump isn't doing
Starting point is 00:52:05 mass deportations, but he's got all of the MAGA's passionately defending the idea of having a few hundred people in a labor camp. It's all about vice signaling for them. Give them one or two random guys to torture and MAGA is happy. Now, I would say I fully expect them to move on to mass deportations. The acting ICE director is talking about setting up Amazon Prime for human beings. And the new Republican budget would make ICE the, I think, best funded law enforcement agency in the history of the country, maybe of the world. So I'm not putting off the table that they're going in that direction next. But help us understand what are these internal dynamics that lead to a situation where these people are cheering random?
Starting point is 00:52:48 We don't even know who these guys are, but random people with no criminal record being locked up in a prison that is worse than what we reserve for serial killers here in the U.S. Yeah, I mean, we thought that virtue signaling was bad when everyone tried to show how anti-racist and unsexist and nice they were. I don't think we really adequately considered kind of you can go in the opposite direction. And so there's this kind of thing where you talk to young conservatives or you're around them. And there is this, yeah, I call it the base ritual. So basically, they're trying to show that they are not politically correct. And this goes in the direction of kind of performative cruelty towards outsiders. I think we have a regime that kind of operates on that principle.
Starting point is 00:53:34 It's loyalty to Trump. It's kind of performative cruelty. They would spit it as trying to look out for the American worker or look out for the forgotten men and women or so forth. They have these justifications in their heads. defend literally anything Trump does or be completely indifferent to whether we're sending, like you said, people who are innocent, not convicted of anything to these labor camps, potentially indefinitely. We talk about Abrego Garcia. The administration has been trying to dig up stuff. He had some kind of domestic violence dispute. But we forgot about the Venezuelans, including the gay makeup artist, who I have not seen anyone say anything as far as he's ever hurt anybody, he has any kind of delights in cruelty, too, I think that that attracts a certain kind of person. It repulses a different kind of person. And I think that these two dynamics, the base ritual, so to speak, and the loyalty to Trump, I think together they're a frightening combination. Camp Shane, one of America's longest-running weight loss camps for kids, promised extraordinary
Starting point is 00:55:09 results. Campers who began the summer in heavy bodies were often unrecognizable when they left. In a society obsessed with being thin, it seemed like a miracle solution. But behind Camp Shane's facade of happy, transformed children was a dark underworld of sinister secrets. Kids were being pushed to their physical and emotional limits as the family that owned Shane turned a blind eye. Nothing about that camp was right. It was really actually like a horror movie. In this eight-episode series, we're unpacking and investigating stories of mistreatment and re-examining the culture of fatphobia that enabled a flawed system to continue for so long. You can listen to all
Starting point is 00:55:51 episodes of Camp Shame one week early and totally ad-free on iHeart True Crime Plus. So don't wait. Head to Apple Podcasts and subscribe today. The Medal of Honor is the highest military decoration in the United States. Recipients have done the improbable, showing immense bravery and sacrifice in the name of something much bigger than themselves. This medal is for the men who went down that day. It's for the families of those who didn't make it. I'm J.R. Martinez. I'm a U.S. Army veteran myself.
Starting point is 00:56:24 And I'm honored to tell you the. I'm a U.S. Army veteran myself, and I'm honored to tell you the stories of these heroes on the new season of Medal of Honor, Stories of Courage from Pushkin Industries and iHeart Podcast. From Robert Blake, the first black sailor
Starting point is 00:56:37 to be awarded the medal, to Daniel Daly, one of only 19 people to have received the Medal of Honor twice. These are stories about people who have distinguished themselves by acts of valor going above and beyond the call of duty. You'll hear about what they did, what it meant, and what their stories tell us about the nature of courage and sacrifice. Listen to Medal of Honor on the iHeartRadio app, Apple Podcasts, or wherever you
Starting point is 00:57:06 get your podcasts. DNA test proves he is not the father. Now I'm taking the inheritance. Wait a minute, John. Who's not the father? Well, Sam, luckily it's your not the father week on the OK Storytime podcast, so we'll find out soon. This author writes, my father-in-law is trying to steal the family fortune worth millions from my son, even though it was promised to us. Now I find out he's trying to give it to his irresponsible son instead, but I have DNA proof that could get the money back. Hold up. So what are they going to do to get those millions back? That's so unfair. Well, the author writes that her husband found out the truth from a DNA test they were gifted two years ago. Scandalous. But the kids kept their mom's secret that whole time. Oh my God.
Starting point is 00:57:43 And the real kicker, the author wants to reveal this terrible secret, even if that means destroying her husband's family in the process. So do they get the millions of dollars back or does she keep the family's terrible secret? Well, to hear the explosive finale, listen to the OK Storytime podcast on the iHeartRadio app, Apple podcast, or wherever you get your podcasts. One of the things, Richard, that you were initially optimistic about was the quote tech right, right? And some of the more moderating influences, let's say that you were praiseworthy of in the first administration. You did write an interesting piece. Can we put D1 please up there
Starting point is 00:58:17 on the screen, which I actually quite enjoyed. And it's called the cat turd to Silicon Valley billionaire pipeline must be broken. Trump orbit and find themselves actually being brought down to the center of the gravity of the movement as opposed to raising the collective capacity of the entire movement? So a few years ago, I wrote an article called Understanding the Tech Right, and I was the first person that I've used the phrase tech right. And this was at the beginning when people like Marc Andreessen and Elon Musk were really starting to take a public role as kind of more Republican-leaning figures. And I was optimistic at the time because, look, these were obviously smart, accomplished people. They've done a lot of things in their lives. I thought there was a human capital on the right. There's been a fleeing from the Republican Party
Starting point is 00:59:20 in the Trump era of people who are college-educated and people who are informed and connected to reality, frankly. And I thought that they would make things better. It was kind of the infusion of human capital that the right needed. Unfortunately, it hasn't really worked out that way. And just from watching these people and how they use Twitter, Musk particularly, but a lot of the other ones, you realize that as intelligent as they might be and as accomplished they might as they might be in the business world, they really have absorbed what's kind of swimming. They've imbued whatever is in the air in the conservative movement. And talking to these people, they often, you know, they're so radicalized, I think, by what happened with COVID and what happened with
Starting point is 01:00:01 wokeness and some of the personal coverage they received from people like Kara Swisher and the mainstream press, that they took a reaction that's understandable but was not the right way to go, which is that they shut out credible sources of information. And they started just listening to Twitter anons. And so Elon Musk is sitting there all day. And I think he believes this stuff. I think he believes this stuff about massive voter fraud, flipping the election about voter – without voter ID, our civilization is destroyed, and they're shipping in illegals to win elections. Because this is what everyone around them and everyone who they trust at this point believes. The problem is the right as a whole, as smart as any individual is, none of us are that smart as an individual. We only have intelligence because we're part of a community, because we know what sources to trust, because we have conversations like this, because we read newspapers and talk
Starting point is 01:00:51 to scientists and people in politics and people with sensible views on these things. So once you shut yourself out, it doesn't matter how high your IQ is, you can fall into social media radicalization and you can have a worldview that just doesn't make sense. And I think we see that most clearly in what's happened with Doge. Look, I'm sympathetic to the idea of smaller government, sympathetic to the idea that government can be more efficient. There's people at places like AEI and Cato Institute. And if those are your goals, there are smart people you could find who will put you on
Starting point is 01:01:23 the right path. And they've been thinking about this for a really long time. Elon Musk has not done this at all. He basically came in and said, it's going to be me and a few of my engineering buddies and basically what the priorities in government should be. I'm just going to listen to kind of whatever's going viral on Twitter. And in the end, he didn't save, he's not going to save a fraction of the money that he saved. A lot of the stuff that they cut ended up being very valuable, things like basic scientific research, things like getting statistics to make sure government does run more efficiently, stuff that doesn't cost that much and probably is some of the most cost-effective stuff in government you could do.
Starting point is 01:01:59 But because of the fact that he just has this simple idea, I'm going to cut government and not think about how or why or I don't need to think about that. It's kind of been – it's been a debacle. And I think we see that across the board with these guys when they're being part of politics but also like they're swimming in the waters of the Trump movement. Yeah. I mean on the one hand, yes, in terms of their stated goals, it's been a disaster. Like he was – oh, I'm going to cut $2 trillion. Now he's like meekly in the cabinet meeting like, I'm going to cut $150 billion and even that's a freaking lie, right? On the other hand, you know, he hates government and government doesn't function now.
Starting point is 01:02:36 Like Social Security, try to go to the Social Security office and see how that goes. The agencies that were regulating his businesses, they've been defenestrated. Like, they will not be able to regulate his business, nor would they because of, you know, the massive corruption conflicts of interest that are involved. So I think from his perspective, in certain ways, it was also a success. But Richard, I do want to ask you a little bit about your views. This is our first time having you on since you were, you know, revealed your anonymous writings back in the day, which were, you know, white nationalists, which you've disavowed. But I still do have some questions about your ideology that I wanted to, you know, to hear from you on, especially
Starting point is 01:03:12 when I hear you making the distinction between low human capital and elite human capital. It raises the question for me whether this is just some sort of eugenics ideology in another form. Like, you're no longer drawing the lines around, like, strictly IQ. You previously supported forced sterilization for people with low IQs. You know, previously you had an idea of different racial hierarchies in your head. Perhaps that's in the past. But is this just a new way to separate out which humans are worthy and which humans are unworthy? So I will say that I did write some things that were very bad. I didn't straightforwardly advocating sterilizing people with low IQ.
Starting point is 01:03:54 I said, here's an argument for it. Now, I don't want, I won't litigate it because it was all bad. And I just want to forget that stuff ever happened. Okay. You said sterilization of the unfit is the only way to stop the decline of the West. But it was a longer thing. Like, if you believe X, Y, Z, anyways, whatever. It was terrible stuff. Everything I believed in 2011 is bad regardless.
Starting point is 01:04:11 But yeah, as far as the human capital stuff, look, there is, you know, when I write about these things like the base ritual and I write about where the right has gone, I see myself from 12 years ago when I was an anonymous basement dweller writing these racist screeds, I've seen that person become the Republican Party. And I've kind of, if I'd stayed that person, maybe I would be in the administration at this point. But I changed, and I think it's horrifying. And I think I have some kind of insights into kind of what's going on here. And so the idea that human capital is kind of a variation of that, I'm not going to say that there's, I'm not going to go in the other direction and say there's no such thing as intelligence. There is no such thing. Just to clarify, there are human beings
Starting point is 01:04:55 have differences, right? It's fine to note those differences. Like I have no, I have no problem with that. Where I have a problem is when you interpret those differences as meaning that different human beings get different rights. And that's really my question to you. And to me, that's sort of the foundation of like eugenicist type ideology is like, well, we're going to decide these people are better than those people. And that means that those people that we decided are not as good, they're not going to get the same rights. They're not going to get to have the same say. They're not going to get to have children or whatever it is the program is that we decide for them. And, you know, I think that type of ideology is very much how you end up,
Starting point is 01:05:31 for example, cheering the, you know, deportation to a slave labor camp of people that you've decided are unworthy of basic human rights. So that's my question for you is, do you still have that view that some people are less worthy of the same rights as other people? I'm glad you asked the question in that way, Crystal, because yeah, I think you're right. I think that's the right thing to be concerned about. Do you go to a place where, look, there's one thing to analyze things and say, why does the right accept anti-vax arguments while the left does? And human capital is, I think, a way to understand that. The right is now less educated. They have all kinds of crazy ideas and all kinds of things. And you kind of
Starting point is 01:06:15 need that analysis. You don't understand how anti-vax goes from a left-wing cause to something that's embraced by Republicans without understanding this, and RFK and his general crankery. Now, the question is, does that mean that low human capital, as we say, it's kind of a harsh term, and it's something that was built on Twitter. But let's say people with less cognitive capabilities or less education, do they deserve less rights? And no, I've stood against that.
Starting point is 01:06:40 I mean, when I talk about Abrego Garcia, I know nothing about him personally. He may be a gang member for all I know. He's not a Nobel Prize winning physicist or whatever, but his rights matter. And the rule of law matters. And the idea that we're all citizens equal before the government. I mean, he's not a citizen, but still there are some rules in how you treat people. Those are important principles to me. So I think that we have to create a space. I saw people on the Blue Sky trying to cancel Matt Eglasius the other day because he said some things where, oh, I don't like to look into the origins of group differences, but I want to treat everyone equal, and we still should be concerned about racism, and we should have taboos against racism,
Starting point is 01:07:17 all that stuff I agree with now. But they still wanted to cancel him because he kind of cryptically, according to Will Stancil and these people on Blue Sky, expressed a belief in group differences, according to them. And I think what we have to do is, yes, hold on to this idea that everyone has value, hold on to the idea of fair treatment and individual rights. And that's the important thing. That's how we don't go down the path of kind of where MAGA's going. Got it. So Richard, to push you a little bit here then, I would say it was pretty evident. You're running many of the same circles I do. I knew a lot of these folks and I knew that they were going to get into power. You were pretty well-informed as well, and you still voted for Trump. So what's with the about-face and this expectation, despite the education, your own
Starting point is 01:07:56 analysis and all of this? In what way was this not all that expected in your vote and for the administration? So I over-indexed, I think, on the first term. The first term was basically a normie Republican administration. I liked a lot of the policies. I thought they were going to do the things I advocated for on DEI issues. And then they appointed the Supreme Court justices that Trump appointed. That's really some of the only pushback that he's getting in the second administration. And so I was expecting something of a repeat. I knew that MAGA had changed. I knew that the Trump movement had become something different. But basically, I thought that we would get that. And then on the night of the election, I was on Destiny's live stream. And we share a negative view of RFK for its vaccine stance and basically everything else that he believes.
Starting point is 01:08:47 And he said something along the lines of RFK will be HHS secretary. And I said, no, RFK will not be HHS secretary. I actually put some money on it. I put my money where my mouth was. And I said, if he does, I might have said something as explicit as I will have made a mistake. And RFK does get appointed as HHS secretary. People around me are telling me these things. And we talk about some kind of social circles. And everyone I talk to is kind of thinks like I do. And so they're telling me,
Starting point is 01:09:15 don't worry about RFK. They're going to put people around him. Peter Thiel, you know, these bio-accelerationists, they're going to be his deputies and they're going to box him in. No, he's going after vaccines. He's doing everything that we thought. And I eventually stopped listening to these people. And, you know, and then you had the tariff thing. Now, look, I'm in good company as far as the market goes. I mean, I believe in the wisdom of the market. All else equal, it's a good way to go. And people did not think the tariffs would be this bad. Trump was promising 10% across the board. People say, whoa, OK, that's the extreme end of what he might do. Instead, he comes out with this chart, with this formula that makes no sense and has like 30%, 40% on different countries and 100-something percent on China. And so I was expecting
Starting point is 01:10:01 Republicans to push back a little. There was a little talk that they might not confirm RFK. There was talk that Bill Cassidy would vote against him, but they all kind of folded in line. And so, look, I misjudged this. I underestimated just kind of how much of a cult of personality it had become and how kind of unrestrained he is to indulge in his instincts. And, you know, a lot of these mistakes were understandable at the time, but they were mistakes. I saw this wrong. What about the authoritarianism? Because, I mean, we all live through January 6th. You were talking earlier about how now it's a litmus test to get in the administration. You have to say not only did Trump win in 2020, he won all 50 states this time around, all of those
Starting point is 01:10:43 sorts of things. Like, it's just hard for me to imagine how that could be a surprise. Like, we've known this man even before the president. We've known him for years. He lies about everything. This, you know, deep, like, racial and IQ view of the world has always been embedded in him when he was, you know, when he was backed into a corner after he did lose in 2020. Then his most authoritarian instincts come out. We knew in the interim, and you were a contributor to Project 2025, so you were directly involved in some of the planning that was done to make sure that all of the guardrails that were in place last time
Starting point is 01:11:16 were completely stripped away. We knew the Supreme Court had also given him this sort of blanket immunity. So what about on that piece? Did you have any concerns going in about the likely suppression of free speech and authoritarian tactics and authoritarian tendencies that, you know, even I have to admit, have gone even beyond what I expected? And I was pretty alarmist, I think the record will show, going into this administration. Yeah, I've always taken January 6th seriously, and I've always taken the
Starting point is 01:11:46 idea seriously that Trump did try to overturn the election in 2020. And I said he should have been in jail for it. I mean, I basically was the only person who probably endorsed Trump and thought he should have been in jail. At the same time, I can look back and say, well, it was a one-time thing. He can't run again. I was actually afraid he loses. He's going to be the Republican nominee every year for the rest of our lives. And well, he still, you know, Steve Bannon is going out there saying he's going to run for a third term. So maybe that didn't even take care of it. But yeah, you're absolutely, you know, you're absolutely right. I mean, I think that, look, there's a lot of things that were totalitarian about the left, a lot of the speech restrictions, a lot of the COVID stuff,
Starting point is 01:12:25 I think we still haven't had a full reckoning for what they were doing at the state level. And here in California, they were masking students, high school students outside for three years into 2022. I mean, it was really kind of, there was a kind of leftist authoritarianism too, that's worth worrying about. But I agree with you that Trump is kind of just in his personal, just his personal sort of disregard for any kind of concern with truth or constitutional norms. And so, yeah, it's something that's concerning. Look, like you said, we didn't think it was this bad. I don't think anyone said before the election that they're going to, they're going to kick out foreign students for writing
Starting point is 01:13:02 op-eds criticizing Israel. You know, it's like the Terps. I mean, I have to say, he was using Palestinian as a slur. He was saying that they were going— He said he was going to deport foreign students. He did. I mean, that's where I—like, that piece actually doesn't surprise me at all. I agree. Because he did advertise that he was ultimately going to do that.
Starting point is 01:13:20 And I agree. You know, I was a critic from the left of, like, the excesses of wokeism and authoritarian tendencies with regard to that. And I agree, you know, I was a critic from the left of like the excesses of wokeism and authoritarian tendencies with regard to that. And, you know, I think mistakes were made in COVID as well, even though I think especially at the beginning, many of those mistakes were well meaning and we didn't know what the deal was going to be with kids and schools and whatever. And the school closures were probably the biggest mistake that were made. People are being kidnapped off the street by masked officers of the state for writing op-eds. Like there's just no equivalent under a Democratic administration, in my opinion,
Starting point is 01:13:51 to what we're seeing unfold under Trumpism 2.0. Yeah. And I don't disagree with you at all. I think that, you know, my thinking, I'm trying to get back into my mind before the election. I appreciate that. Yeah. But, but at this point, I think you're right. I think I can say that I'm not, I'm not on the fence anymore. Like that stuff we complained about the left the other, uh, you know, last year or two years ago, uh, that happened, it was bad. We can criticize them for it, but this is a completely on a different level. And I think the thing we learned here is like, uh, character matters a lot. Like the, what I talked about the Trump movement and it becoming a cult and the base ritual
Starting point is 01:14:26 and kind of what I saw personally with these people who were in kind of Trump's orbit and who are gonna probably be taking over the government. I should have taken that more seriously. I was just thinking kind of at a level of, okay, there's the Republican coalition, there's voters, there's the market checking him. There is kind of the Republican establishment, there are courts and there's the market checking him. There is, you know, there is kind of the Republican establishment.
Starting point is 01:14:46 There are courts and so forth. I should have been thinking, like, what kind of people are going to be staffing the government? And it's not just Trump. It's the fact that they're all Trumpists and true believing Trumpists at this point. And that was the mistake. I think these ideas that like it's funny because conservatives, they have this thing about, you know, virtue and leaders and how we've had a decline in morality. And it's not just Chris Ruffo was tweeting this the other day and I got an exchange with him.
Starting point is 01:15:12 It's not just about IQ. You might say there's a lead human capital, but there's wisdom and there's all like, but Donald Trump is just like, but Donald Trump. That's like the only thing you could say to that. And it's kind of insane. There are arguments about character and like, you know, civility and the need to pay attention to our inheritance and norms. All that stuff was right. They just became part of a cult of like the man who is the antithesis of all of that. So it's a kind of remarkable dynamic. Yeah. So let's return to Elon. We're both very curious about your take on this, Richard. Let's put D3 up there on the screen. This is some revelations about Elon and the way that he manages kind of his harem of young women, some of whom he's met on Twitter, often buying them off and encouraging them to have his children. Apparently there's a known number of,
Starting point is 01:16:02 what is it, 14 children, but it could be as high as 50. We were just curious, how does this fit into your elite human capital model here? Is this an example of elite human capital? Well, you're also a natalist, right? Yeah, you're a pro-natalist. This is a high IQ individual, and he's very rich. He's spreading his seed, just like Genghis Khan or any other person with absolute power. So what do you make of this? Look, yeah, you're right. On the surface, you might say, well, if you're an analyst and you believe in IQ – and I don't judge these things. If people want to have a lot of children, I generally think that's a great thing. I think that what we've seen is the kind of person who thinks like this, I'm just going to spread my seed to the greatest extent possible. There's somebody like Genghis Khan prone to violence, or there's someone like Elon Musk who just kind of doesn't really have a moral sense. So I think this is the problem
Starting point is 01:16:54 with, you know, a lot of ideas might sound good in theory, but in practice, you have to kind of look at the kinds of people who are attracted to them and look at how these things work out in practice. And I think it's probably not a coincidence that the West had Christianity and a norm of monogamy and didn't think like this and ended up creating the modern world. Yeah, I think it's a lesson here about taking, starting with IQ natalism and not kind of thinking about character and what happens when you try to apply these ideas in a person's life. Yeah, and it's not only that. I mean, he explicitly, according to the article, has told people that he's worried about the high birth rates in developing countries. And so he wants to combat that with his legion of, you know, his
Starting point is 01:17:35 high IQ, whatever, before the apocalypse. So, I mean, there's also these like directly, I would again say like eugenics inspired ideas that come out here. So I don't know that it's, he doesn't have an ideology or I think you said moral compass or moral, I'm not sure the language that you used, but no, I think he does have an ideology and it's a really evil one. Yeah, I think he does have an ideology. I think he has kind of instincts and ideas about the world. Now, to be fair to him, I've never seen him say we've got to limit the birth rate in developing countries or anything like that. But yeah, I think that his entire idea of, you know, it's weird because like you would think, well, somebody who's kind of an IQ snob,
Starting point is 01:18:23 you might be like me. You might look down on kind of the conservative influencer space. But no, I mean, he will denounce the entire class of educated people and people who know anything about the world, but then love these people who are less intelligent, less honest because they all worship him. Right. So there's this ideology. But at the same time, it's just kind of a classic kind of selfishness, big man behavior. And that's not that's not socially conducive to anything good. So how would you describe your political ideology now, Richard? Like, where do you kind of fit? How can people make sense of you? I mean, the funny thing is, for all the things I've written and all the little bit of trolling
Starting point is 01:19:00 I do online, I'm a pretty normie guy. I mean, the people I talk to these days are like, you know, scholars at AEI or, you know, Cato, just like normal kind of libertarians who are concerned about norms and think the American experiment has been a good thing and we should try to preserve it and caring about the well-functioning of institutions. So I'm a libertarian-ish classical liberal for all the kind of, you know, kind of eccentricities that you see in the things I've written and the things I still write today. My politics underneath it all are actually sort of normal. All right. Well, I will say just, you know, I also have changed my mind on certain things because of this Trump administration. And one of them is
Starting point is 01:19:42 something that you touched on, which is just how much character does matter. And I think the liberals were right on certain aspects of Trump that I previously would have been like, ah, who cares about the norms? And they're so obsessed with these different things about his personality or whatever. No, I think you're right. I think those things mattered a lot more than I gave him credit for mattering. And now that his personality traits have not only taken over the government, but I mean, these are, it's the fish does rot from the head down. And that has to do not just with this administration, but with the whole country. And when you see the most powerful person in the country, in the world, who is narcissistic, utterly shameless, lies, is cruel, et cetera, of course, you're
Starting point is 01:20:28 going to have people think that that's the way to succeed, that those are traits that are worthy of emulation. And so I also, you know, just, you know, since you're talking about your evolution and your thought, I also have evolved in the way that I think about these things and have changed my mind about how important those things in certain way. It's like it's made me sort of more conservative in that way of like, oh, you know what? Actually, the character of our leaders, like these squishy traits and these norms, they actually did kind of matter. And I want them back.
Starting point is 01:20:59 See, it's interesting. I would almost do a reverse. I think, Richard, what you've convinced me most of all is that competence and elite human capital matters more than anything. And that, as you pointed out, let's say with the J.D. Vance tweet, right, you and I both know that that is a strawman argument about deportation. That's not about Abrego Garcia in an El Salvadorian prison and defying a Supreme Court order. But that is one where somebody who has been through this process cannot debase themselves to actually argue at the level of drumpf, for lack of a better word, to be like, no, this is good, and we're also sending American citizens. And so, I mean, Richard, you've been through many things, but I'll say this, man. I've been reading you for probably five straight years.
Starting point is 01:21:43 When's the first time we talked? 2020, I want to say, when you put out your CSPI study? Yeah, after the report on the working class coalition. You were one of the first people who ever truly caused me to change my mind, and you have caused me to change my mind many of the times since. So we'll have a link down in the description to your sub stack. And I will always read you. You're a fascinating man. Well, thank you very much. I really appreciate that. Appreciate the discussion, Richard. Thank you always read you. You're a fascinating man. Well, thank you very much. I really appreciate that.
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Starting point is 01:25:10 So, guys, in terms of Doge's supposed aspirations as a cost-cutting exercise, we can officially now say it has failed. Elon has gone from claiming he was going to cut $2 trillion out of the federal budget to now meekly at a cabinet meeting massively downgrading that estimate. Let's go ahead and take a listen to Elon himself. How much do you think we can rip out of this wasted $6.5 trillion Harris-Biden budget? Well, I think we can do at least $2 trillion. Yeah! Well, thanks to your fantastic leadership, this amazing cabinet,
Starting point is 01:25:52 the very talented Doge team, I'm excited to announce that we anticipate savings in FY26 from reduction of waste and fraud by $150 billion. And some of it is just absurd. People getting unemployment insurance who haven't been born yet. I mean, I think anyone can appreciate whether, I mean, come on.
Starting point is 01:26:13 That's just crazy. So from $2 trillion to $150 billion, and even that is just not even true. You could put this up on the screen from the New York Times. They dug in to what they're even actually claiming. The headline is Doge is far short of its goal and still overstating its progress. Elon Musk now says his group will produce only 15 percent of the savings it promised. But even that estimate is inflated with errors. And in particular, they went and looked at some of the top cost savings here that they had claimed and it still was inaccurate or they were double counting or it's just, you know, it's just preposterous. And not to mention that some of the things that
Starting point is 01:26:52 they're cutting are actually going to make the government more expensive. So, for example, the massive cuts at the IRS are going to make the IRS less able to do its job of collecting tax revenue, which means that the budget deficit is going to get even larger. So layer on top of that, Sagar, the political failure in Wisconsin, he seems to have diminished power and sway within the Trump administration. But on the other hand, you know, I, while those aspects have failed, Doge has been very successful at making the federal government, at destroying certain key elements of the federal government. And I've always said that that was really more of the actual goal than any sort of budget deficit fiscal hawk type of stuff.
Starting point is 01:27:39 And that's pretty clear from the beginning of what they were actually trying to accomplish. I'm not so sure. I think that it was the initial goal was to actually do allegedly what they wanted to do. And then it became eventually convenient and acknowledged internally that that was impossible. And the longer that the chaos and all of that began to happen, then, yes, it became like destruction in and of the end for itself. As in I wouldn't underestimate like genuine stupidity. This comes off of our end for itself. As in, I wouldn't underestimate like genuine stupidity. This comes off of our discussion with Richard. And one of the things that I as well, you know, talking about
Starting point is 01:28:10 Richard is what the hypocrisy on all of this is what actually drives me the craziest. Because look, even if you believe as you do, that it was a cynical effort from the beginning, there are many people who actually do believe in reducing government, right? As I said, initially before the election, one of the most popular bro elements that I would often hear about from Trump was Doge. It was one of the things people were most excited about. Do not underestimate this. People hate the government. Yes, you know, they may like Noah or whatever, but like broadly, people's interaction, I mean, who all just paid their taxes, right? It's a pain in the ass or the e-file service or whatever, which, by the way, Doge took away. We'll talk about that in a second.
Starting point is 01:28:48 My point broadly is that the animus behind that was popular. I still think it's actually quite popular, although maybe less so now that it's happened with Doge. But the problem is that you exploit that in then not only reduction, non-permanence, stupidly, chaotically, and then even if you take their initial numbers now at face value, put the next one please up on the screen, is that Trump and Hegseth are promising a $1 trillion Pentagon budget. Which would mean that you would actually take all of your new alleged savings and you would then just give it to the Pentagon. And so what have we actually accomplished? NOAA has reduced capacity. Social Security phone lines are there.
Starting point is 01:29:35 The entire team responsible for greenlighting nuclear energy permits have been fired or are trying to be brought back right now. My friends in the nuclear regulatory space are freaking out about Doge. Didn't we all vote for that? I think so, about abundant energy. Meanwhile, we're also doing a trillion-dollar Pentagon budget. Then let's zoom out to the Congress. The U.S. Congress, Republican-led Congress, wants to cut a trillion dollars in spending, and they want to increase the budget for the Congress. The U.S. Congress, Republican-led Congress, wants to cut a trillion dollars in spending, and they want to increase the budget for the Pentagon. That's not possible. It's not
Starting point is 01:30:10 possible without cutting massive social services. You could even do discretionary, you could wipe out the entire thing, you couldn't wipe out a trillion dollars. That's right. It's basic math. If you don't believe me, go play with ChatGPT or any of these AI things. Say, cut $1 trillion from the budget, don't touch any social services or the ChatGPT or any of these AI things. Say, cut $1 trillion from the budget. Don't touch any social services or the Pentagon. See how easy it is to get there. Look, this is simple balance sheet arithmetic. And so when you look at all of that, the Republican Congress has decided not to increase taxes on anyone making over $1 million per year.
Starting point is 01:30:41 They've decided to extend the vast majority of the TCJA tax cuts. They want to attack manufacturing tax credits. Not a single thing is in line with each other. And I think that is what is now becoming clear to the American people over time. I think they genuinely did give Doge and all that a lot of runway. Like I said, do not underestimate how much people hate the government. You really cannot underestimate that. But it has been, what is it now? How many days to the Trump administration? 80-something? We're coming up on the end of the 100 days.
Starting point is 01:31:12 The story of the worst 100, this is going to be a crazy book in Oxford history from 100 years from now. The story of the first 100 days from the Trump administration will be Doge, tariffs, and El Salvador, which is nuts. That is not what you would want if you want a successful administration. You are effectively hanging yourself for the duration of your presidency. You had a left, which has never been more demoralized in modern history or unpopular. And then you reinvigorated it for no reason or discernible impact in the future uh i mean look i am famously wrong and could be he could be massively popular and jd could be cruising to 2028 but a lot of shit would have to happen uh in the interim but yeah let's look let's be honest too three years is a long time all right nobody would have predicted
Starting point is 01:32:02 that we're here today right the vibe shifted vibe shifted, quote unquote, a lot more than people would have thought. So it can shift back. It easily could. I don't particularly see it, but I didn't see this either. Well, and here's the thing with Doge and with the tariffs, the real negative impacts of those things have not yet even hit. Well, they will. They have not yet even hit. And so, I mean, this is why I just don't believe Doge was ever really about cost cutting, because it is just basic. I mean, we were saying from the very beginning, right? Even if you cut every single federal government worker, you're not saving a significant percent
Starting point is 01:32:38 of the federal budget. And a lot of, not all of, but a lot of the playbook from Doge has also followed from Project 2025. So it's not like there wasn't some level of a concerted plan here. And with Elon himself, like obviously he's this huge federal government contractor and he hates that these government agencies were daring to regulate his businesses. They're not going to be doing that anytime soon. The level, the amount that they have cut enforcement of white collar crime is truly insane. And that comes from the, you know, the National Labor Relations Board, which governs obviously labor relations. So
Starting point is 01:33:17 that's gutted and cannot function. You had the CFPB, which is like the anti-scam bureau that helps consumers who have been scammed by, you know, big business or small business or any business. That's been completely gutted. And they were the ones who were set up to regulate X. If X moves into, as they're planning, they have a deal with Visa into payment processing. You know, he went after the particular board within the National Transportation Agency that was regulating automated vehicles, something that he was hating and was bothering him with regard to his Teslas. So in those ways, he got what he wanted. Now, I do think that the probably more maximalist original goals of effectively—and this actually
Starting point is 01:34:03 came out in the article about him and his harem too. He said, well, I can't be president, but I can make Trump be president with the implication being like, oh, but I'll basically be the one running the show. Like the more maximalist goals of I'm just going to be able to effectively take all of the government's money for my SpaceX Mars boondoggle dream project. I think that is not going to come to fruition. And I do think that the fact that he has now been politically hobbled by going so hard in Wisconsin, going all in in Wisconsin and then getting, you know, smacked down with a double digit loss. I think that has probably significantly diminished his political power within Trump's sphere as, you know, all of these guys are optics branding people. So even that
Starting point is 01:34:50 image I showed you of him, like, seated at the table at the cabinet meeting, he wasn't even invited to, he just, like, showed up for, as one of many around the table, is so different. Compare that image to the image of him standing, hovering over Trump, who's at the Resolute desk, with his kid running around and wiping spurs on the desk and whatever. His kid is still there, by the way.
Starting point is 01:35:13 I'll never understand that kid. Also, he's got 14 kids. Why that one? I mean, not to be mean, but isn't that kind of favoritism? For real, though. For sure. For sure.
Starting point is 01:35:21 But putting the dynamics with the kids aside, there's a whole other conversation. Like the imagery of him sort of standing, lording over Trump and doing things and then asking permission later and Trump giving him all sorts of runway is a is a massive contrast from him sitting one of many around the cabinet, around that table and, you know, having to meekly submit his, you know, oh, Mr. King, you're amazing. And thanks to your wonderful leadership, dear Liege, we were able to cut $150 billion from the federal budget deficit. So, you know, I think we are, I do think Doge is sort of like petering out as a project. But again, that doesn't mean they haven't done tremendous damage that will take many, many years to recover from and that services
Starting point is 01:36:06 won't be damaged. Social Security, IRS, we actually have the chart we can show you here. This is E5, put this up on the screen, in terms of the IRS staffing levels just fell off a cliff. Now, in fairness, the number of staffers of the IRS were significantly increased under the Biden administration with the idea of like, we need more people to be able to go after rich tax cheats in particular and not just be going after like waitresses for their tips. Well, but now it has plummeted down to 50,000. We haven't seen this level in years. I don't know when was the last time. So that's going to have a huge impact. Like, rich people are going to be able to get away with not paying their taxes. It's going to be much easier for them.
Starting point is 01:36:48 If you can hire lawyers and you've got the money to be able to fight and set up tax shelters and all this sort of stuff, the IRS is going to be very hard-pressed to be able to go after those people. So while Doge as a project has in some ways failed, it doesn't mean that it hasn't done long-term damage. Yeah, sure. On the IRS front, I'll just say this, Tom, blue in the face, they made themselves unpopular. They're the ones who got their new money and then did their little Venmo rules and turned the entire small business and poor community against them from years of automated,
Starting point is 01:37:18 like those, what is it, automated investigations into people making less than $22,000 per year. They blame resource allocation, et cetera, but their own practice is not exactly one where people are going to be shedding a lot of tears. Maybe a decade from now, if there's less in our deficit, but I would say broadly on the Doge project, you could view it two ways. Yes, there is damage done. I also, like I've been saying, I really think that the legacy of the stupidity currently of much of the Trump administration will be to negatively polarize the American public in the same way that people were. I mean, if you think back to the 1970s, the chaos of the 1970s, people were negatively polarized on trust in government. That's why
Starting point is 01:38:01 they elected Jimmy Carter. They were negatively polarized on inflation. Part of the reason that they were so broadly accepting of the Reagan administration, they were negatively polarized around what they saw as a failure of the prolonged New Deal period. Same thing, why neoliberalism was really ushered in. So in a similar way, we are seeing failures in Doge. We're seeing failures on tariffs. We're seeing failures on immigration. And in all three of those, you will find then that the seesaw nature of politics will swing back in a much more different direction. So if – look, I mean Trump was elected, I would say, with a broad enough mandate on all three of those issues. If you actually wanted to stop him, this is a pretty good outcome for you because you're going to win a decent argument there in the future and be on
Starting point is 01:38:50 pretty strong ground, especially, I think, whenever it comes to government capacity, prices and tariffs and those other things. I do not want this to happen, and it's part of why I think it's really bad the way that this is all basically shaken out in the first 100 days. And I know enough looking in the past to say it's pretty hard to crawl out of a hole like this once you've actually done it. That's what I was saying about the first 100 days. While it's certainly possible vibes, et cetera, could swing back, deep into a hole that crawling out of, you know, even politically for them, not to mention policy-wise, is just going to be – I just don't see the way that it's possible. Yeah, you're crippling the economy, potentially sending it into a recession. You're cutting taxes for the rich.
Starting point is 01:39:40 Yeah, soon. You're cutting social services for everybody else. You know, you've made it so that some of the things that people actually appreciate about the federal government, like being able to get their social security checks, has been completely broken. So, yeah, of course there's going to be reaction against that. And, you know, we've been tracking, especially this week, the approval rating for Trump really across the board has fallen off significantly, not just with regard to his overall approval, but specifically his handling of the economy completely reversed. He has the worst numbers with independence of any president, including himself, ever at this point in their
Starting point is 01:40:21 presidency. And the pain of tariffs has not yet hit. Whatever Doge has been doing in the government, which we have very little transparency into, by the way, whatever they've been doing in the government that is going to hobble these agencies and incapacitate them for years and potentially cause the kind of crises that we've been concerned about over time, those things haven't even hit yet. So it's hard to imagine how they on this current path, you know, Trump's not going to do a 180. That's not who he is. Right. Instead, and this is just a quick preview of my monologue, like instead, he's going to lean more into the authoritarian, like, let me suppress the dissent as there's more of a sort of
Starting point is 01:41:01 like grassroots and institutional backlash to him and resistance to him. You're going to see more authoritarian tactics in the same way that after he lost the election in 2020, you know, a referendum on his popularity and, you know, a threat to obviously the greatest threat to his power. That was when he was at his most unhinged and most authoritarian in the first term. And I fully expect us to be heading into that. Yeah, maybe. But, you know, the other possibility of that is that when you lose your grip on the government and you began explicitly challenging the court, I mean, I saw a Supreme Court watcher be like, if you're Justice Roberts, now that whole, remember we talked about the facilitate language? You're just not going to do that in the future. You're going to be like, no, it's not happening. I think that's right because they have to be watching the way that the administration is just lying about their order
Starting point is 01:41:50 and be like, oh, we cannot give them an inch, not an inch. Also, look, you can crack down all you want if you're Trump, but any Republican, good luck to you, who is in power right now because when the Dems take the House, Elon alone, it will probably have to spend $100 million in legal fees, just in terms of what the House committees are going to investigate on SpaceX and on Twitter and Tesla alone. So that's just Elon. For everybody else in the administration, oh my God, I hope people have lawyers upon lawyers on retainer because it's not going to be fun. For all those contempt challenges. Remember, Bannon went to prison for contempt.
Starting point is 01:42:26 So did Peter Navarro. Yeah, I mean, these people, they can literally lock your ass up. And then in the future, let's say, you know, this continues and you have a Democratic president who's in charge. I mean, yeah, I wouldn't want to be a Christian charity right now when we're talking about Harvard University tax exempt status and all that. So I still see a major backfire that's coming there for Donald Trump. Last thing, I do want to put this last E4 guys up on the screen just so you know what we're not like cooking the books here or lying. This is cumulative federal spending by day. And where we are in 2025 is above where we were in 2024.
Starting point is 01:43:04 So, you know, all of those purported savings not showing up here whatsoever. And as I mentioned before, you know, even their $150 billion claim is total bullshit. That New York Times report, they found that one of their largest claims involves canceling a contract that did not even exist. So those are the sorts of things that we're talking about here. There you go. But there is one good thing, sort of. Maybe. I'll get to that. Maybe. Caveats, but maybe encouraging news coming out of the Trump administration. Let's get to that. Let's get to that on Iran. Let's put this up there on the screen. There's so many things that I want to say about this. First of all, it's the headline, Trump waved off Israeli strike after divisions
Starting point is 01:43:42 emerged in his administration. Let's break down this extraordinary report, clearly leaked from the administration, kind of as a screw you to Israel, and showing their plans for what they presented in the Oval Office. Quote, Israeli officials recently developed plans to attack Iranian nuclear sites in May next month. They were preparing to carry them out, and at the time were optimistic the United States would sign off. The goal of the proposal was to set back Tehran's ability to develop a nuclear weapon by a year or more. Quote, almost all plans would have required the United States help not just to defend Israel, but also to ensure that the Israeli attack was successful, making the United States a central part of the attack itself. For now, Trump has
Starting point is 01:44:25 chosen diplomacy over military action. However, in his second term, he is eager to avoid being sucked into another war in the Middle East and has opened negotiations with Tehran, giving it a deadline of just a few months to negotiate a deal over its program. Earlier this month, Trump informed Israel of his decision. The United States would not support an attack, discussed it with Netanyahu when he visited Washington just last week, and told him in the Oval Office that that was not going to happen. Quote, Israel has long planned to attack Iranian nuclear facilities, rehearsing bombing runs and calculating how much damage it could do,
Starting point is 01:44:57 but support within the government has grown after Iran suffered a string of setbacks just last year. They think that they're weak and that they can strike now. Now, according to them, there were plans on the table not just to facilitate the bombing, but then to require and push the United States to bring more military assets to the region. Remember how we were covering here on the show about all the new military assets that are headed that way?
Starting point is 01:45:21 It was specifically after a push by the Israeli government on this. Now, thank God, for now, cooler heads have— This must have been what Tucker got wind of. Exactly. You're exactly right. And so, looking inside, it's very interesting. There were, quote, a range of officials who spoke out against any of these attacks. Tulsi Gabbard, the director of national intelligence, said that the buildup of American weaponry would potentially spark a wider conflict with Iran. The United States does not want. J.D. Vance, Pete Hegseth, and apparently also Susie Wiles, the White House chief of staff.
Starting point is 01:45:53 However, the idiot dunce, Mike Waltz, was also in the room, quote, frequently one of the most hawkish voices on Iran. And while he was skeptical about Israel's plan to succeed without U.S. assistance. It's back to the plan anyway. And there are several people who are inside the administration who are openly supporting this, people like Marco Rubio, many other outside voices that are in the admin. So I do not want to downplay. This is good news and it's bad. So the good news is that they have opted for a deal, quote, on a timeline of a few months for now before any sort of strike is on the table. The bad news is, I happen to remember the Iran deal. It took years to get the JCPOA to be negotiated. Second to that, as you guys covered yesterday on counterpoints, there is a full-scale purge happening right now in the Pentagon. There have been three top officials who have been kicked
Starting point is 01:46:43 out of the building in some sort of crazy power struggle. I haven't fully gotten all the details. Nobody really seems to know. All I happen to know is that the people who were most on Pete Hegseth's side and were the most America first just happened to be frogmarshed out of the building. Okay, that's not good, right? These are the very people who I would want right around Pete Hegseth who would be quashing some of the stuff that's happening. Mike Waltz, meanwhile, even though he literally put Jeffrey Goldberg on a signal chain, oh, he gets to stay, right? But these people who they're accusing of leaking,
Starting point is 01:47:12 they're getting frogmarched. Interesting. Got it. The point is that personnel around Trump is pure chaos. In some days, Marco Rubio's in charge. Mike Walz is still around there. Some days, he's listening to JD and he's listening to Tulsi Gabbard. But there is no guarantee that he doesn't just turn his head and listen to the other guy. We have Steve Witkoff, all those guys, they're in control for right now. But as we saw with the ceasefire deal, they can be out of power momentarily. Nothing is guaranteed and or certain right now. I don't think the stakes could literally be higher.
Starting point is 01:47:45 Because, I mean, the Israelis, you have to admire their chutzpah. They don't even develop war plans without U.S. backing. They don't even pretend to have an operation that doesn't mean, hey, Big Daddy, you have to come in here and actually do something about it. So let's all be very clear about what this strike and all that means. It's also, the thing about Bibi is he's not even creative. This is the exact same plan that he came up with in 2009, that Jeffrey Goldberg, by the way, is the one who revealed about and tried to push President Obama to support Bibi to do.
Starting point is 01:48:22 This was 15 years ago. It's the exact same plan, almost to the letter, about what the U.S. is going to do and how Israel is going to be the tip of the spear, but the U.S. would be the overall security umbrella there. So that's where we're at right now. The deal is currently being negotiated. The timeline is not good. Trump could change his mind at any time.
Starting point is 01:48:40 And the fate of the world is hanging in the balance. And what Emily was saying is that the people who want him to go with the Bibi bomb Iran plan, they're saying like, oh, you're just negotiating a deal just like Obama. Yeah, no, they are. To try to get under his skin. And I mean, unfortunately, there is some truth to the fact that any deal that he would get would probably bear some similarities to what Obama did. But that is, I mean, first of all, I think the original deal was actually a good deal. It was one of the signature achievements of the Obama administration. It's really unfortunate Trump backed down. It's also unfortunate Biden
Starting point is 01:49:16 didn't get back in something we covered extensively at the time. But I have Dr. Trita Parsi, you know, evaluated and analyzed this New York Times article. I just wanted to share his insights because he's such an expert here. He says, number one, last week, Trump told Israel that the U.S. would not support an Israeli attack on Iran while talks were being conducted. That's the headline from the piece. He's saying these are the key pieces to take away from it. Number two, in the Israeli plan of attack, the U.S. would have to play a central role. Israel itself has no military option.
Starting point is 01:49:45 So that's what Sagar was saying. Keep that in mind. Number three, still the Israeli plan would only push back the Iranian program one year. More attacks would be needed after that. That means Israel wants to bring the U.S. into a forever war with Iran. Yes. That's what we're talking about here. Number four, he says,
Starting point is 01:50:05 more importantly, the 2015 nuclear deal pushed back the program much more than a year. So that was way more successful. And then he says, Trump appears to understand negotiated solution better achieves his goal. Well, we'll see. We'll see on that front. I hope so. I hope he can be persuaded of that. And I hope they're able to negotiate a deal because this is, this would be insanity. This would be utter insanity. It's not good. I do want to put some positive news. Let's go to the next one, please.
Starting point is 01:50:29 Trump has reappointed Adam Boehler. You'll all remember Adam. I remain a Boehler stan. He's the guy who said that we're not a client state of Israel and who was relentlessly attacked by the Israel lobby for daring to want to negotiate with Hamas directly. And who said we're not a client stateas directly and who said, we're not a client of Israel and who knows, maybe they're good guys. Remember, this guy is friends with Jared Kushner and they still were able to sideline him. Seems to be back. He's being appointed to, quote, expanded hostage envoy role. We're not yet sure how that is all going
Starting point is 01:50:58 to work out. I'm told the Israeli ambassador directly intervened to try and to screw over Adam Bowler. So that's what we're dealing with. Let's go to the next one here. Again, just more a little bit insight. This is from Barack Ravid. He's mostly getting leaks, it seems, from the Israeli side. But what he's saying is basically that the president kind of needled Bibi Netanyahu in the Oval Office when saying he would not greenlight the Iranian attack and kind of tried to force him to accept the fact that the U.S. was going to pursue a deal. But they have several senators and others, Mike Walsh, Marco Rubio, Tom Cotton, Lindsey Graham, people who have their ear of the president. And then the Israel lobby specifically behind the scenes is whipping harder than they have ever done since I have seen since 2015. They have the entire infrastructure in place.
Starting point is 01:51:47 The tweets are being sent. The calls are being made. I mean, these people never underestimate their abilities. As I said, as I watch people who I know, America Firsters getting frog-marched out of the Pentagon. So I don't remember Mike Walsh getting frog-marched out of the White House, even though he obviously deserved to, and they went to bat for him. So don't forget that.
Starting point is 01:52:05 Well, Laura Loomer did claim some scoffs. Yeah, some low-level guys. I don't care about some guy who's staffing Mike Walsh. Mike Walsh is in the Oval pushing war. That's what matters more than anything. That is actually the only thing that matters at the end of the day because this is all up to Donald Trump in the Situation Room. Right now, we have relative parity between Tulsi Gabbard, Pete, and J.D. versus Rubio and Mike Walz and a few of the other neocons that would be on the National Security Council. But, I mean, you can see how quickly things can turn just like that with Donald Trump.
Starting point is 01:52:38 So I have no idea. And I do not underestimate the Israel lobby. Their ability to get on Fox News is to pump all this bullshit straight into Trump's brain. And so things could be headed in a bad direction. All right, Crystal, what are you taking a look at? Camp Shane, one of America's longest-running weight loss camps for kids, promised extraordinary results. Campers who began the summer in heavy bodies were often unrecognizable when they left. In a society obsessed with being thin, it seemed like a miracle solution.
Starting point is 01:53:10 But behind Camp Shane's facade of happy, transformed children was a dark underworld of sinister secrets. Kids were being pushed to their physical and emotional limits as the family that owned Shane turned a blind eye. Nothing about that camp was right. It was really actually like a horror movie. In this eight-episode series, we're unpacking and investigating stories of mistreatment and reexamining the culture of fatphobia that enabled a flawed system to continue for so long.
Starting point is 01:53:39 You can listen to all episodes of Camp Shame one week early and totally ad-free on iHeart True Crime Plus. So don't wait. Head to Apple Podcasts and subscribe today. The Medal of Honor is the highest military decoration in the United States. Recipients have done the improbable, showing immense bravery and sacrifice in the name of something much bigger than themselves. This medal is for the men who went down that day. It's for the families of those who didn't make it.
Starting point is 01:54:10 I'm J.R. Martinez. I'm a U.S. Army veteran myself, and I'm honored to tell you the stories of these heroes on the new season of Medal of Honor, Stories of Courage from Pushkin Industries and iHeart Podcast. From Robert Blake, the first Black sailor to be awarded the medal, to Daniel Daly, one of only 19 people to have received the Medal of Honor twice. These are stories about people who have distinguished themselves by acts of valor,
Starting point is 01:54:38 going above and beyond the call of duty. You'll hear about what they did, what it meant, and what their stories tell us about the nature of courage and sacrifice. Listen to Medal of Honor on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts. DNA test proves he is not the father. Now I'm taking the inheritance.
Starting point is 01:55:00 Wait a minute, John. Who's not the father? Well, Sam, luckily it's your not the father week on the OK Storytime podcast, so we'll find out soon. This author writes, Hold up. So what are they going to do to get those millions back? That's so unfair. Well, the author writes that her husband found out the truth from a DNA test
Starting point is 01:55:26 they were gifted two years ago. Scandalous. But the kids kept their mom's secret that whole time. Oh my God. And the real kicker,
Starting point is 01:55:33 the author wants to reveal this terrible secret even if that means destroying her husband's family in the process. So do they get the millions of dollars back or does she keep
Starting point is 01:55:41 the family's terrible secret? Well, to hear the explosive finale, listen to the OK Storytime podcast on the iHeartRadio app, Apple Podcast, or does she keep the family's terrible secret? Well, to hear the explosive finale, listen to the OK Storytime podcast on the iHeartRadio app, Apple Podcast, or wherever you get your podcasts. Senator Chuck Grassley was recently confronted by angry Iowa constituents
Starting point is 01:55:55 who are demanding the return of Kilmar Abrego-Garcia. Take a listen. Are you going to bring that guy back from El Salvador? Yeah. Yeah. Yeah. Why not? Well, because that's not a power of Congress. The Supreme Court said to bring him back.
Starting point is 01:56:16 The judges are. Yeah. And the president hasn't. How can they do? He's defunded the Constitution. Trump don't care. If I get an order to pay a ticket for $1,200 and I just say no, does that stand up? Because he's got an order from the Supreme Court and he just said no. Yeah.
Starting point is 01:56:37 Screw it. The president of that country is not subject to our U.S. Supreme Court. It's a crap while you're breaking back. I can't break back. I'm pissed. Now, the reason that this administration has decided to fight so hard on this one particular case to keep this one man locked in the dungeon for life is pretty simple and obvious.
Starting point is 01:57:02 Because if they can stonewall, even in a case where they admit that they screwed up, then there is nothing to stop them from sending whoever they want to the torture dungeon for life. All they have to do is get the planes in the air before a court can weigh in. As one Reagan-appointed judge wrote of Trump's plot, quote, it takes no small amount of imagination to understand that this is a path of perfect lawlessness. What I want you to understand, though, is that this is only the beginning of Trump's authoritarian crackdown. And in fact, if history of other authoritarians
Starting point is 01:57:36 and Trump himself are any guide, as Trump's popularity falls, he will only become more dangerous as he reaches for more and more tools of suppression and control. This is, in fact, the exact spiral that led to the January 6th riots and Trump's attempted election subversion. But if there is one thing we know about Trump 2.0, the man himself is more unhinged and any prior guardrails have either been demolished or are being bulldozed right through. Now, in many ways, the early days of Trump's administration have been a complete failure. We're just discussing Doge. It's floundering. No public achievements, even as it destroys key government functions.
Starting point is 01:58:14 Elon himself has seen his status ebb after a political drubbing in Wisconsin and seems on his way to limping out of town. The Ukraine war and Israel's genocide in Gaza, they grind on with no apparent end in sight. And perhaps most devastating politically, Trump's grand trade war has been a catastrophic mess, which somehow managed to unite Wall Street with Main Street in their revulsion for the chaos and the damage that is being inflicted for no good reason. Polls increasingly reflect the public's consensus on these failures. Liberation Day has accelerated a downward trend in Trump's overall approval rating. He's gone from plus one with independents to minus 22. That is the worst any president has
Starting point is 01:58:57 ever fared with this group at this point in their presidency. His economic approval has fallen even more precipitously with tariffs dominating when people are asked what negative things they've seen recently about the Trump administration. Even on his strongest issue, immigration, even that is starting to slip away from him. In a Quinnipiac poll that was taken before the Abrego-Garcia case
Starting point is 01:59:17 blew up to a full national scandal, Trump was already underwater on immigration by five points, and on deportations, he was underwater by 11 points. Now, at the same time, resistance is swelling, both at the grassroots and the institutional level. Hundreds of thousands of people have turned out to Bernie and AOC's Fight Oligarchy tour, including large crowds in red states like Idaho. Millions turned out coast to coast as part of the hands-off protests. Members of Congress cannot hold a town hall without being flooded by outraged constituents. Universities are beginning to fight back rather than get rolled. Law firms are starting to think twice about their capitulation bribery deals.
Starting point is 01:59:57 Democrats have moved from Cory Booker's show speech to Chris Van Hollen's genuinely courageous flight to tangle with Bukele in El Salvador. The courts are becoming increasingly assertive, and bond traders are apparently the actual deep state. Now, how will Trump respond to this rapid political shift and mounting backlash? It won't be by backing down or changing course. It will be by cracking down. Some of this project, of course, is already well in motion. He's used supposed national emergencies and national security threats already to claim extraordinary powers by his terrorist program and by invoking the Alien Enemies Act. But there's more. On April 20th, pursuant to an executive order that Trump signed on day one of his presidency, he is going to receive a report from Defense Secretary Pete
Starting point is 02:00:40 Hegseth and fascist Barbie Kristi Noem about whether or not he should invoke the Insurrection Act of 1807. Now, such an invocation would open up extraordinary powers for this president to use our military in our streets against our citizens. Of course, there are any number of ways which he might deploy that power. Perhaps he'd deploy the military to the border, part of an expanded militarized immigration response. The Acting head of ICE has mused about ramping up mass deportation on an industrial scale, even fantasizing about fleets of trucks scooping up immigrants the way that Amazon efficiently delivers packages on a mass scale. Quote, we need to get better at treating this like a business, acting ICE director Todd Lyon said,
Starting point is 02:01:21 explaining he wants to see a deportation process like Amazon Prime, but with human beings. Trump and the Republicans are pushing for a much larger budget for ICE and for private prison contractors to run detention centers. But if you really want to go for industrial scale, it'd be hard to beat the military. Now, even if you are hawkish on immigration, think of the genuinely evil way this administration has already conducted itself. Do you feel comfortable handing them the tools for a militarized, industrial-scale human removal and incarceration system? Do you really think the horror is going to be just reserved to the criminals, the gang members, when we already know that 90% of the men that they sent to a slave labor torture dungeon were innocent?
Starting point is 02:02:07 Like Amazon Prime, but for fascism, I guess. Now, notorious Blackwater war profiteer Eric Prince, he's been pushing his own plans for mass expansion of the Bichelli torture dungeon operation. According to Politico, he wants to send thousands of migrants to Seacott and avoid legal scrutiny by designating a portion of the prison as American territory. That way, they could hold people indefinitely in Bekele's gulag as easily as they can scoop up and detain immigrants right here in the U.S. But that is just one of a myriad of disturbing authoritarian possibilities. The Trump administration has also been cracking down on protesters, specifically targeting pro-Palestine activists and those involved in the anti-Tesla movement, describing both groups as terrorists. What's more, Ken Klippenstein is
Starting point is 02:02:50 reporting that Trump's law enforcement apparatus is increasingly targeting all protesters against this government, including those who participated in the recent hands-off protests. This effort is being spearheaded by Trump's counterterrorism czar, Sebastian Gorka, who, Ken writes, frequently compares all his political opponents to terrorists and is in a significant position This effort is being spearheaded by Trump's counterterrorism czar, Sebastian Gorka, who, Ken writes, frequently compares all his political opponents to terrorists and is in a significant position of power in this administration. Now, Gorka is also looking at considering those who oppose deportations as providing material support for terrorism. That would be a felony. It is not hard to imagine Trump using the Insurrection Act against any mass protest movement, given they are already laying the administrative and rhetorical groundwork of painting these protesters as terrorists, as criminals, and as paid operatives.
Starting point is 02:03:34 Another dark possibility is that Trump moves from using wartime powers to starting an actual war. We've been covering and covered in this show for a while, the seeming buildup towards war with Iran. Now, on the hopeful side, Trump has enlisted Steve Witkoff in direct talks in an attempt to achieve a deal. He reportedly rejected an Israeli plan to directly strike Iranian nuclear facilities, at least for now. On the ominous side, Trump's Pentagon has already drawn up war plans for Iran, including a nuclear option. Key anti-war voices, including Dan Caldwell, were just purged from the Pentagon. Signalgate also revealed just how hawkish the internal chat really is. And Trump himself has long seemed to believe that war makes for good politics. In the Obama era, Trump theorized multiple times that Obama would start a war with Iran in order to bolster his popularity. Take a listen. Our president will start a war with Iran
Starting point is 02:04:26 because he has absolutely no ability to negotiate. He's weak and he's ineffective. So the only way he figures that he's going to get reelected and as sure as you're sitting there is to start a war with Iran. Now, if he still thinks war with Iran is good politics, he is a complete and utter fool. That is not a possibility I put off the table, by the way. But he also may not really care about his approval ratings as much as he cares about the power he can grab. And everyone who lived through the post-9-11 power grab knows that a president can grab a hell of a lot of power during times of war. Now, these are just a few possible directions Trump could take as his poll numbers slide, and he must resort to ever more extraordinary means to stifle dissent. Obviously, they're already trying to coerce universities, law firms, media courts, and business. I would
Starting point is 02:05:14 pay, though, very close attention to what happens on April 20th, since the Insurrection Act seems like the easiest cheat code for this administration to expand their lawlessness on immigration to lawlessness with regard to the entire population. After all, Trump says outright, they want to be able to disappear Americans just like they did Kilmar Abrego Garcia. Yeah, yeah, that includes him. Why do you think there's a special category of person? They're as bad as anybody that comes in. Now, the Insurrection Act, to me, seems like the most likely path to effectuating that outcome. Trump considered, of course, invoking the Insurrection Act twice in his first term, once against Black Lives Matter protesters, again,
Starting point is 02:05:54 leading up to January 6th. In both instances, he was held back by some more establishment figures within his administration. But this administration, none of those types of voices remain. This time around, you should take him seriously and literally and assume that whatever your worst case scenario is, the reality is likely to be worse. And, Sagar, I do think, you know, we both talked about after that meeting with Bacali in his office where, number one, they're completely flouting the 9-0 Supreme Court ruling. They are refusing to do anything to bring Abrego Garcia back. And they are completely lying about all of that. And he announces, we want the homegrowns next. I wasn't able to add it into this monologue, but I saw that McKellie has said he wants to double the size of Seacott and said specifically, it will be up to the Americans to fill it.
Starting point is 02:06:43 So that's the landscape that we're facing as his popularity slides, and he's going to face more and more dissent and more and more resistance. I think it's possible, but it's like I said, I would not, I would further not underestimate both trying to, quote, save face. But even more importantly, we're already watching a, we are already watching here in the Supreme Court and other era. They know in some ways that they're in a difficult position. I think there's a reason that there hasn't been another Alien Enemies Act deportation since the—well, it's been a month, right, now, since that has happened. I mean, it presumably, if they thought that they were on good standing, that's something they would continue to do. They've been blocked in multiple courts.
Starting point is 02:07:24 They've been blocked in multiple jurisdictions under TROs. I guess for now they have decided not to participate in that. In some ways, like with Doge, what we watch is they start extreme and then they pare back over time. So I'm not going to dismiss that. I also would not count out the possibility that as they continue to get backed and backed and backed into a corner, that they also become, frankly, a little bit more of what they were like in the 2020s, not necessarily, or sorry, in the 2000, the late 2010s, whenever they were first in office, where largely, like, Trump did not really do anything after the TCJA outside of foreign policy.
Starting point is 02:08:02 Well, he did January 6th. Yeah, it was at the end. I mean, it's a little different. Yeah, but that is, it is analogous though because that's when his, you know, he loses the election, whether he believed that in his mind or not. I don't think he,
Starting point is 02:08:15 I think he did know that he lost. And that's when his most extreme authoritarian instincts came out is when he actually had suffered his most severe political blow. And, you know, I mean, if you look at other authoritarian regimes, you see a similar thing. When the public rises up, then what do they do? They crack down, right? Because to your point about him, quote unquote, saving face, his version of saving face is making sure there aren't mass
Starting point is 02:08:37 protests in the street, making sure that he can do what he wants and not have to listen to the courts, et cetera. So listen, I could be wrong, but like I said— I'm not dismissing it out of hand or calling it— I know you aren't. I think three months ago I would have scoffed. I would have been like, that's a joke. I'm not going to say that, okay? Like, I'm being honest.
Starting point is 02:08:54 Yeah. Well, and I do think—I'm just putting the pieces together of we know this direction with them designating pro-Palestine activists, hands-off protesters, anti-Tesla protesters, now people who oppose deportations as terrorists, right? Or giving material support to terrorists. So you have that in place. You have this executive order he signed on day one that says he's supposed to get this report
Starting point is 02:09:22 about whether or not he should invoke the Insurrection Act. So you have that piece in place. And you have him saying, we want to send the homegrowns to this El Salvador dungeon. So when I look at that landscape, I am very concerned about what's going to be happening in the next weeks. And, you know, I think everybody should be paying very close attention to what happens in the coming days in particular. I don't disagree at all. I also think, you know, let's calibrate and say Insurrection Act on the border is like categorically different than Insurrection Act on whatever, hands-off protests, like you said, right? That is just completely different. I mean, you can be against it if you want to. I think the former is probably pretty popular. The difference, I think, is that on the
Starting point is 02:10:09 court cases and on the precedent, it's become clear to me that it's not even about, because I'm not so sure. I know there's a lot, there's a leftist strain of thought. They believe that they intentionally grabbed up Garcia. I don't think so. I think it was complete incompetence and stupidity. I agree with that. I don't think that they intentionally grabbed him up, but I do think the fact that they've leaned into this so aggressively. I mean, look at J.D. Vance posting all over Twitter all day long. Pam Bondi coming out and releasing, you know, again, the field report that supposedly claimed from this, like, dirty cop who got fired weeks later that he was a gang member because of his Chicago Bulls hat. You know, Caroline Leavitt lying and saying he's a human trafficker.
Starting point is 02:10:53 No one has ever said that. There is no evidence that that has ever been the case. So I think it was an accident, just like I think with Mahmoud Khalil. I don't think that they knew that he was a legal permanent resident. I agree. But I do think once they find those things out and they insist on staying the course and taking this maximalist position, I think that's what ultimately matters. And with Abrego Garcia, the reason they don't want him to come back is because if you open up the possibility of some sort of legal process to retrieve these people, these plans are done. You can't send American citizens there. You can't send these, you know, 90% of these people had
Starting point is 02:11:28 nothing, no criminal record whatsoever. And so that plan and that avenue towards the lawlessness, that is over. And so that's why they're fighting so hard on this, because if they can get away with this one, they can get away with anyone, with anyone. Right. Which is, of course, why they're doing it. I don't know. I will, we'll have to check back in a couple of weeks, like you said, because I think it could vary. I'm not downplaying it all. I absolutely think it go in that direction. I also would not count out the same petering out that we've seen with Doge. I mean, they've effectively surrendered. No, like we just did a whole block about that. I'm not saying the damage wasn't done and I don't think it's good.
Starting point is 02:12:12 But, you know, Trump and all of that, he is, in the past, was relatively nimble in moving away from certain things. But, you know, with the people around him and others, he may decide not to do that. He did back away from several unpopular things in his first term, but he also views doing that and giving in to media pressure as one of the great mistakes of his presidency. That's right. Which is definitely one of the differences that we see year-round. That's a good point. We'll see.
Starting point is 02:12:29 Okay, we will see you all, I guess, no, Friday's show tomorrow. That's right. See you all later. DNA test proves he is not the father. Now I'm taking the inheritance. Wait a minute, John. Who's not the father?
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