Breaking Points with Krystal and Saagar - 6/15/21: Biden Gaffes, BlackRock, Lab Leak, Tax Cheats, and more!

Episode Date: June 15, 2021

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We got rid of Sagar's desk. That's right. We actually downgraded. We actually got all these premium memberships and we decided that we're going to downgrade our setup. Yeah, we sold off the set for scrap. No, just kidding. Okay, so there's actually good reason why the set looks a little different and we're a little

cozy today, which is that we are down in Austin, Texas. The reason we are down in Austin, Texas as you might be able to guess is because we are going in Austin, Texas. The reason we are down in Austin, Texas, as you might be able to guess, is because we are going on with Joe Rogan. So we're getting ready for that. But we still wanted to do a show for you guys, especially since this whole thing is brand new. It will be a little bit of a different show. We're just going to go through a few of the stories that we thought were really important. There's some stuff that we did not want to miss. So we will bring that to you.

And in terms of the schedule for the week, it's also a little bit different. I know, I know. Okay, so today we're doing a little bit of an abbreviated show. Thursday, when we would normally do another show, we have something, a special surprise that we will be bringing you, so stay tuned for that. And then normally we would not do a Friday show, but because Sagar will be going through desk withdrawal, we're going to get back in the studio on Friday, do a full show for you with our monologues and our guests and all the stuff that you're used to. So that's what's going on.

Yeah, I got to put my hands on her, make sure she's clean, make sure they haven't screwed with it. Abused her. Make sure we haven't screwed with it while we're gone, which Eric, by the way, I'm watching you guys like a hawk. I like that you decided the desk is female. Oh yeah, there you go. So it's like a ship, you know? It's like a car.

It's like something, it's like an attachment. But here's the thing. So it's been fun. By the way, shout out to all of you who saw us on the street here and you were like, I know why you're here. And I was like, no, you don't. You don't know why I'm here.

Look, we've got awesome stories here that we want to queue up. Obviously, Biden is abroad right now. And there's a lot to be said about NATO and all the serious stuff here. But look, to be honest, I mean, he does not look like he's in decent shape. And this clip in particular that came across our radar, so to speak, really just speaks volumes where he screwed up Syria and said Libya three times in a row. It was an incredibly meandering answer. Very, very strange. Let's just go ahead and we'll take a listen to that.

Where we can work together with Russia, for example, in Libya, we should be opening up the passes to be able to go through and provide food assistance and economic, I mean, vital assistance to a population that's in real trouble. I think I'm going to try very hard to, it is, and by the way, there's places where I shouldn't be starting off and negotiating in public here, but let me say it this way. Russia has engaged in activities which we believe are contrary to international norms, but they have also bitten off some real problems they're going to have trouble chewing on. And, for example, the rebuilding of Syria, of Libya, you know, this is – they're there.

And as long as they're there without the ability to bring about some order in the region, you can't do that very well without providing for the basic economic needs of people. So I'm hopeful that we can find an accommodation that where we can save the lives of people in, for example, in Libya. Okay, there's a lot going on there. Look, I'm not going to say Trump was the most articulate president ever. So everyone's always like, what about Trump? Yeah, he also couldn't form a sentence. And it was frankly like pretty embarrassing whenever we were abroad and it was bad. And I think that, look, from a press perspective, it's obvious, Crystal, that if

this had happened under the Trump administration or really any normal administration, kind of like pre the great partisan cheerleading of the media, that they would say this was great. That was a disastrous answer here. Right. And look, we're not going after him because he's old, but this is the president of the United States, and it is obvious to anybody that what's happening here, or at the very least, it was a bad day, right? And yet there was zero coverage. It was like a complete blackout.

Instead, they were commenting on, I also love the Russophobia of the press being like, are you gonna stick it to him, Mr. President? Like, what are your red lines, Mr. President? And he's like, verify, but trust. And I'm like, God, like these people are they literally want to be at war with Russia. But that's a whole other conversation. They basically just memory hold that entire clip from what was happening here.

It really is a media story, first and foremost. Well, first and foremost, it's a story about the fact that, you know, look, whatever you think of Biden, you have to be honest about what his capabilities are at this point. And you just would not have seen that performance from him even five years ago. Certainly when he was serving as vice president in the Obama administration. And you say, you know, the press would have covered it differently if it was a different president. The press did cover this differently before Biden was the Democratic nominee. That's a good point. I mean, they were some of Glenn points us out routinely. They were some of the most actually aggressive pointing out some of these failings.

Remember Julian Castro on the stage being like like do you even remember what you said just now joe this was open fodder for conversation before he became the only hope to defeat donald trump and then they flipped on a dime to if you say anything about this you're ableist you're going after him because of his stutter his stutter i mean that's something that one it makes me so angry i'm like oh he just magically had a stutter that recreated itself. Confusing Libya and Syria three times in 90 seconds isn't about a stutter, okay?

So that doesn't mean that you shouldn't have voted for Biden. That doesn't mean anything other than saying this was a topic of conversation that was on the table before he was Democratic nominee, and it's off the table now. And instead of just sort of like bashing Biden for this gaffe, we actually pulled some research here that an audience member brought to our attention from Pew. They dug into the first 60 days of the Biden administration to say, OK, well, how did the coverage of this president compare

to the coverage of other presidents? And it's actually remarkable because Obama famously got glowing press coverage. And in fact, if you look at the numbers, Obama did get more positive coverage than Biden. But Biden actually gets less negative coverage than Obama. So Obama was covered slightly more negatively than Biden. And the largest percentage of coverage, 54 percent, is actually just neutral, which is kind of consistent with the whole like Biden is boring, like whatever, who really cares what he's doing? Let's get back to the latest culture war battle. It's kind of perfect for that. This actually that's the most important number to me is not just that he has a

19 percent negative assessment and a 27 percent positive assessment. It's actually the 54, which is that it's just absence. It's like one of the most, I think, important lines. I can't even remember who I got it from, which is like, what's the most important form of media bias is what they choose not to show you. And this is it. It's things like this. It's a gaffe of any other president. Actually, Bush, Clinton, Obama, this would have been on the nightly news. And this is just completely ignored. And there is a reason for that. It isn't just about helping Biden out necessarily. It's that it's all about a partisan agenda. It's like they literally feel as if it's their duty not to report on news, which is bad for mainstream Democrats. And Glenn actually pointed this out,

which is that he posted a clip of NBC News anchors like Andrea Mitchell in 2019 talking to me like, you know, he just doesn't look the same like he was up there. Check this one out from Jamil Smith, who's I think he's like a Rolling Stone. He's like a total doctrinaire Democrat. I'm no doctor. And I had a family member whose dementia contributed to his death. I will be one of the last ones here speculating wildly about Biden's cognitive abilities relative to his age. But his campaign is irresponsible to let this go unexplained or undiagnosed if the case may be. So it's an open form of discussion until he wins the Democratic nomination. And the neither segment there around Biden is so incredibly important combined with the 19 percent only of negative assessment. How you manage to get less negative press than Obama, that's a skill. That's an actual skill. I don't even know.

Kudos to his press show, I guess. Yeah. Look, the press stopped making us pretend that Jen Psaki is the greatest woman who's ever taken the podium. I mean, look, there have been some good female press secretaries and she's not one of them. Let, let's be honest here. You know, incredibly boring. It's also so this same research from Pew is very revealing in another way, too, because they quantified Biden versus Trump and the types of stories that the press covered, too. So with Trump, 74% of the stories that media outlets were covering were about his leadership and character. Only 26% were about his policy agenda. For Biden, it's almost completely flipped.

So 35% is about leadership and character, and 65% is about policy. And here's the thing. I actually think that's the better mix, right? That is actually the better mix where you're taking these just like subjective personality opinions out of the mix and just looking at, okay, what is the policy actually? But the irony here is that they thought they were launching really effective attacks against Donald Trump by making everything about leadership and character. But in fact, if they had focused on the way he was selling out his values that he supposedly believed in and his core principles and selling out his own voters, if they had focused more on his actual policy agenda, I think they would have been way more successful in sort of dimming his popularity.

He would have taken on much more water. Instead, they went with what, you know, if one person's opinion about a person's character is as good as, you know, as good as the napkin you can write it on. It's fascinating because I actually had this conversation today. I had an Uber driver who was like, oh, watch a guy's show. He's a big pro-Trump guy. And he's like, you know, you said something that bothered me. And I was like, OK, well, what was it? And he was like, look, it's that you said that Trump was a bad president.

And he's like, and you're not factoring in all of the stuff he was up against. And I was like, well, what do you mean by that? And he's like, the media, they just never gave him a fair shot. And I was like, well, what do you mean by that? And he was like, you know, they're going after, you know, his wife and his kids and Yvonne. And I mean, the Yvonne Gojara stuff is legit since he literally hired them. But I think what you're getting at is exactly that, which is that it actually hardens support for a lot of the key people. Whereas if there had been a discussion about, I don't know, the 2017 tax law about giving a massive corporate giveaway whenever he ran against corporations or about the fact that

he basically wanted to strike a, quote unquote, deal with China in many cases for aesthetic purposes rather than for effective purposes. Or why didn't we have steel tariffs until a year into the administration because he hired an idiot named Gary Cohn? All of these things have immense impact on people's lives and they have no idea. And I don't blame them. It's not their job. Like these people are out working hard, driving, probably not for a good enough wage. And all they turn on and hear every day is, oh, he's such a venal person or, oh, he's such this. And what do they hear about Biden? It's more of the same. They're like, oh, he's such a good man. He's such a good husband. Like,

look, I think it's great. You know, the guy obviously clearly loves his wife and that's awesome, but I don't want to hear about it every day. Like, oh, he's so awesome. He's the best grandfather. He's so nice because he texts Hunter or whatever. I'm like, yeah, that's great, man. Like, you look like a great father. And like, truly, God bless you for it.

Same with Obama. Like, you were obviously a good dude. But like, what does that mean in terms of what you're actually doing? And there's just, it's the neither part of it is just what bothers me the most. It's like they memory hole it. It's disappeared. And the irony is right wing media tried the same thing with Obama.

Yes. When he was president, it was all about like remember a million segments about his failure to lead. And you just look at that and you're like, what does that even mean? Like if you have a specific critique about what he's doing or what his policies, let's hear it. Let's have a debate about it. Let's have it out. He like bowed to the Japanese. Right, but it was all about he's failing to lead. And it's like, OK, well, guess what? He just got reelected again. But rather than Democrats looking at that and being like, that didn't work out all that well for the right. Maybe we should try a different tack. They never, ever learned

that. And in fact, we talked about that recent Democratic autopsy, which parts of it were kind of suspect. It came from third way, grain of salt. You know, the takeaway has always got to be like, it's the left's fault. But one of the things that they concluded as well, which they had the data to back up, was that Democrats went too far on just Trump's personality, Trump's character. My God, you would have thought they learned that back in 2016. Jesus Christ. But they never learned.

And the bottom line is, I mean, ultimately, whether he won or lost, their jobs were going to be secure. Some of these people never got richer than during the Trump era. So it wasn't all that high stakes for them, ultimately. But I thought those numbers about what the stories actually focus on were fascinating. They also dug into like the policy, the particular pieces of policy that they focused on. So during Trump, when the economy was doing well. Yeah, it was fine.

Relatively strong. I mean, listen, the American economy always sucks for most people. But, you know, with the top line metrics, the economy is doing well. Two percent of stories focus on the economy. With Biden, it's 22 percent. Now, on the one hand, I do think there would be a justification for there to be more economic stories right now because of COVID, because we're coming on. We got the relief package, all that stuff. Like, I do think that makes sense. But in no era should the economy be getting 2% of the story time because it's always central to people's lives. It's always the key story determining what you're going to be able to do that day, what your prospects look like for you and your family in the future.

The flip side of that is the number one type of story that they covered for Trump was his political skills. So again, these like squishy things that you would have been better off if your goal was to hurt Trump to actually talk about his policies. So pretty fascinating. It makes me so angry because it's like what you're talking about,

about how much money that these people made. MSNBC, I mean, Rick Wilson literally wrote and made millions of dollars writing books like Everything Trump Touches Dies. And all these guys who like once had met him in New York would write a book about how he's a bad businessman or whatever, which like maybe it's true. But I mean, they were all just making endless cash. And MSNBC would invite them on nightly and give their platform and just advertise it over and over and over again and focus on the personal characteristics of the president. And then after setting that precedent for what, five years, almost straight, given the campaign now with Biden around, it's just gone. It's just completely ignored. And given how much credibility they've

lost with people, given how much that I have seen in terms of how people are just tuning them out to the tune of millions, I mean millions and millions of people just turning off the TV, it can be a positive development. They have nobody but themselves to blame, but they did a lot of damage to this country in the process, and they really can't be forgiven for that. I think that is very true. Okay, so another story we're looking at. There's actually a lot of interesting going on with this. We've been covering now for quite a while about the wild housing market. I did a radar back when we were at Rising about this Wall Street Journal article pointing out that now if you sell your home, very likely that

permanent capital is going to be the buyer. They're coming in with all cash. They're outbidding first-time attempted homebuyers. They profile this couple that's trying and trying to be the buyer. They're coming in with all cash. They're outbidding first-time attempted homebuyers. They profile this couple that's trying and trying to buy a house. It's in some, I mean, it's in Allentown, Pennsylvania or something. Not a major, major metro area, but this had come to small towns. And they had this stat in here about how one-fifth of the buyers of single-family homes are now permanent capital, private equity in particular. And there was a tweet about this, this article that's been out for a while and specifically focused on BlackRock that just went wildly viral on the internet. So that's the first layer of the

story. And then we'll get to some of the right wing reaction to it that's also interesting. But it was just, it was fascinating to see how this story that's been out there bubbling under the surface for a while just completely exploded on the internet. Because people are experiencing this in their own lives and in their own neighborhoods. I mean, yeah, listen, if you're trying to sell a house, people are coming in with cash offers, et cetera. That's a great deal for you. But for a long time, we were being sold this narrative that the reason housing prices were going up is because the professional managerial class were making different choices and they were buying up homes, et cetera, et cetera. No. Come to find out, this is a bubble that permanent capital is inflating and then also profiting off of in a bid to basically become America's landlord. And that is a terrifying state of affairs.

No, it is. And this is what I want to very, just lay it out for people. What is happening here is not free market capitalism because what's happening here is you have these private equity giants and more, which have made billions of dollars during the pandemic. Now, they're not getting into the housing market to enrich the community.

They're not going to sell that house eventually. This is about creating a permanent middle class rentier class. The worst thing they've ever lost out on. Remember, poor are already extracted to the tune of hundreds of billions of dollars in terms of late fees and all these other things that landlords have been able to go after them for a long time. But the middle class, the American dream, has always been, okay, if you save up a moderate amount of cash over about a five to 10 year period, you can put a down payment on a reasonable house. You can buy that house. You can achieve your dream. You can have property, which is the single largest purveyor of intergenerational wealth, which gives your kids a shot at having a better life than you, aka why we all live in

this country. All right. so all that being said, they don't want any of that. They want, it's very profitable to have monthly rent payments hit their bank accounts. So they were very willing to pay 100, 200K over asking price and buy up all of these new neighborhoods because what they want is to create a lower and middle rentier class, which is paying them.

And then they can use more of the money that they're getting in this feedback loop to pay even higher for prices and drive out average middle class consumers. So all of that being said, who do you think is coming to their defense? Because you know their lackeys have to do it. Oh, well, one of them, Ben Shapiro. And look, I love this because Ben every every once in a while, just takes off the mask and shows us like how much of an actual radical that he is. Yeah, that's true.

Here's what he says. I see many people are enraged at BlackRock. BlackRock is buying homes from people willing to sell them. If you don't like what they're doing, target the loose governmental policy incentivizing this investment. By the way, by this, he means the Federal Reserve, which has nothing to do with this. And let's ask old Ben if he has anything to do or would do anything whenever it comes to constraining Wall Street. And I think we know the answer to that. Yes. Next, seriously, BlackRock isn't going to stop investing in single

family homes because you're mad on Twitter. You could direct your energies towards the Fed's insane monetary policy. If you're mad at BlackRock and you want to artificially prevent them from buying single family homes, I'd like for you to explain it to those who currently own the homes, why you're taking money out of their pocket. And this is really what it is. He's like on the look, if I get it, if you're selling your house, obviously you want the most amount of money. I'm not mad at you. What I am mad at is the fact that these private equity giants got enriched again to the tune of hundreds of billions over the last several months, and especially during this year. And I have a long-term dystopian vision.

This is America. Property is the number one way that you get rich. That's it. That's how it works. I wish it was otherwise, but it is. And you know what? It is ingrained in our DNAs. We're down here in Texas. I would be remiss if this was flagged to me. How hot is the Austin housing market? Shout out to the Austin American Statement. Homes are regularly selling for 100K or more above asking. 1,500 Austin area homes from January 1st to May 23rd

sold for $100K above asking. In the same timeframe in 2020, only 22 homes hit that threshold. This is a combination of rich people who are moving here as well as private equity giants and more who see that more PMCs are coming here and want to buy out all the real estate

in order to rent to them. This is the antithesis of what the American dream is all about. And of course, they've got a bunch of people on their side like Shapiro, but there's a lot of neoliberals who agree with this stuff too. I love how he's like, why don't you direct your energies towards the Fed's monetary policy? Did you vote on the Fed's monetary policy? Do you have any influence whatsoever on the Fed's monetary policy. Yeah. Did you vote on the Fed's monetary policy? Do you have any influence whatsoever on the Fed's monetary policy?

Of course he takes off the table any of the policy changes that actually might have a chance. This thing called Congress, you actually vote for. Right. That's where you might, you know,

if you have an issue here, direct your energies. And look, in a sense he's right. BlackRock is going to BlackRock. Yeah. No doubt about it. Right.

Congress could Congress. This is the American capitalistic system that has been set up with, you know, corporate socialism. We're going to get to socialism in a minute. Corporate socialism and totally rigged in their favor. Thanks to, you know, some of the people that Ben would support the most in the type of policies that that Ben frequently espouses. This is the logical end result. And it's absolutely grotesque. You said it's setting up a truly sort of dystopian future. And, you know, when I looked into, OK, so what is it like if you have one of these giant corporations, giant private equity

funds? What is it like for them to be your these giant corporations, giant private equity funds? What is it like for them to be your landlord? And you will not be surprised to learn it's a hellscape. They do everything they possibly can to save every single penny. So that means if something goes catastrophically wrong in your home, they're not going to fix it or it's going to be on you to fix it. Of course, the legalistic contracts that you have to sign puts all of the burden and the risk on your side. So you're fronting the cost. Oftentimes, this is what they found. You're fronting the cost for any sort of like significant repairs that have to take place. Meanwhile, they're banking the wealth that comes from the appreciation of the property as you're putting in those investments.

I mean, that's what that looks like. And you're absolutely right. The one way that at this point, as precarious as the economy is for people, the one way that Americans can still build stable middle class wealth is through the housing market. And that is what they're going after. That is what they are trying to drive a stake into the heart of. It is the last bastion of any sort of stability. And so I just saw an article recently that was like, millennials don't want to buy a house. They just like the carefree rent. No, they can't buy a house. They can't buy a house. You have to be like a millionaire or private

equity executive in order to buy just a basic house in a hot metro area. And by hot metro area, I don't mean like five cities. I mean most of the country. So this is a truly dystopian state of affairs and something that people clearly it's striking a nerve. No, it is. And I'm so glad every time I see like organic stuff like uprisings like this, it just gives me life because it also like Ben, there are people on the left who agree with this stuff. Dylan Matthews, he's a Vox writer. Quote, this seems like a great deal for homeowners and a way to wean Americans off their obsession with investing in crumbling piles of wood and appliances. I have a joke with a lot of other friends that these people actually do want to force you to live in pods.

Like that's what they want. They want pod lives like they want ready player one level existences where people are stacked up up on top on top of each other in like this dystopian hellscape and it's like oh well they have a place to sleep right i mean like whatever like what what do they care i mean maybe they're saving a little bit of money imagine referring to your homes in as crumbling piles of wood and appliances. That's going to sell in the heartland. First of all, obviously the most politically stupid thing you could say.

But from a human, it's dehumanizing. This is crazy. We're in the state of Texas right now. Property is intrinsic into the blood of the state in terms of what independence and all that was fought over, but also into the DNA of how state in terms of what independence and all that was fought over, but also into like the DNA of how people conceive of themselves. Now, once again, is that the perfect system?

Probably not. But it is what it is. And at this point, if you're advocating for on the side of BlackRock, imagine thinking this seems like a great deal for homeowners and then for all these people who are just going to be, imagine paying your check once a month to BlackRock. As you say, oh, your sink is broken. Screw you. You know why? Because it's not like my house. If you're a starter landlord or whatever, your sink is broken. You're like, hey man, this is my house. You know, you got to make sure I fix this, all of that. You know,

I got to rent this to somebody else. BlackRock, they don't care. Literally, sue me. They'll be like, sue me. Go ahead. What are you going to do? You're not going to sue it. You can't do anything. You have no rights. I have some questions here. Is Dylan Matthews, who obviously is neoliberal, writing for us? Very neoliberal.

Is he calling for the abolition of private property? A lot of them do it. No, no, no. A lot of them believe this. They believe this stuff. I would agree with the sentiment that we are too dependent on building wealth through houses. Yes, I would agree with the sentiment that we are too dependent on building wealth in through the you know through houses yes i would agree with that but you can't rip the rug out from people without anything to replace it then you're just making everybody worse off if you've got another like

oh hey we're gonna build wealth in this other way okay and make it okay for you or may help you to have a dignified life at this other okay OK, then maybe we can talk about that. But you can't just pull the rug out from under. I've got one more, though, that we have to we have to get to because I definitely it's actually a good one. I definitely want your response to this. Yeah. Marjorie Taylor Greene, MTG herself. Her response to this was to say socialism period all the people excited over the fantasies of socialism that they consume from social media experts and members of congress don't understand that there

will be very few that own and control everything and the rest of the population will be poor and under control so when she sees so in when she sees this like rampant unfettered capitalism that has in fact wrought all kinds of misery and consolidations of wealth and power. And we talk about monopoly and antitrust here on the show. When she sees that, she thinks AOC bad and socialism bad. Look, this is the culture war rotting your brain. But at least Marjorie thinks this is a problem.

So I guess we'll take it. Well, that's true. I guess that's true. You know what I mean? She's not – I don't know. There's probably some senator out – maybe like Chuck Grassley or somebody out there. He'd be like, well, look, there's a good deal of homeowners. What are you going to do? You're going to stop BlackRock from buying houses?

I'm like, maybe. Is that crazy? Am I insane? Should we not have a stable housing market? Oh, it's never right. An unstable housing market never worked out badly for the United States. Why can't it just be that families and regular people get first crack? And this happens constantly. And if it's just there and nobody wants, okay, well, maybe, but why can't we at least have it so that just normal people get

first crack? This is, again, it takes the human element out of it. When BlackRock is your landlord or owns all the houses in your neighborhood, do you really have a neighborhood? Like, that's what part of it is, is about forming human connections with your neighbors and having a community where people who own the property in the community are invested in it. BlackRock doesn't care about you. They care about their office in Manhattan and in Beijing and Shanghai and in London and in Brussels and then where all of their executives live in the Greenwich, Connecticut. And if it could care less. And if it will save them one penny to kick you out of the house or one penny, if they calculate, let's say, you know, that a certain percentage of these homes have asbestos in them. They know what it is.

They will calculate, is it worth the money to get rid of the asbestos and make sure these houses are safe? Or is it worth the money to just pay the lawsuits that, you know, that will come from a certain percent? Yeah, it's like the scene from Fight Club. They're like, we literally take, like, the average lawsuit times the average payout. This is real stuff. It's real. 100. It's real. 100 percent. It's real. I mean, I remember in West Virginia covering like some of the excess of the coal mining

coming. Same thing. They would they would scrimp on costs in terms of safety and they would just calculate out like, OK, well, if one or two miners dies or one or two workers dies, is it how much are we going to have to pay on to their family? Like, let's do the tradeoff. That's that's the type of calculations that we're talking about going on here. They do not care about your family.

They don't care about your community. They don't care about your neighborhood. In some instances, they are buying up entire neighborhoods. And so, I mean, it was kind of heartening to see how much attention this is starting to get. Because, again, I think people, no matter where you live in the country, and this is another thing that's like not a partisan thing. No matter where you live, what type of neighborhood you're in, red state, blue state, et cetera, you're seeing some impact from this right now. And look, maybe right now you're on the happy side of it. Maybe you are the one selling.

Good luck then on the other side when after you sell the house, you're trying to buy the next one. Yeah, exactly. Don't forget about the rest of us out here who are not homeowner spokes because some of us got kicked out of our house and then had a rude way. And we're like, what the hell is going on here? This is crazy. Just so everybody knows, you do have a roof over your head. I do have a roof over my head. I have a house. Shout out, especially to the lady who offered to sell me her house in Alexandria. Very nice of you. Very nice of you.

But I'm good. All right. We got another one for you though. Yeah. This is a really – this is a crazy one. So this is about the – obviously we've been tracking the lab leak developments and it does seem like every single day there's just like dribble, dribble, dribble. Something new, something new, something new. Well, Sky News Australia got their hands on some video footage from inside the Wuhan Institute of Virology, which directly disproves talking points that Dr. Peter Daszak and the WHO

had cited around dismissing the lab leak hypothesis in the first place. Let's take a listen to what they found. For 15 years, they do not have live or dead bats in them. There is no evidence anywhere that this happened. It's an error that I hope will be corrected. Well, tonight, explosive footage from inside the Wuhan Institute of Virology indicates his statements are wrong. It is not a conspiracy to say there were live bats at the lab. It is a fact. And as you can see, this video shows bats in a cage at the Wuhan Institute. You can also see there a researcher feeding a bat with a worm. And in this image, we can see researchers out capturing bats, and a bat even hangs off a researcher's hat. In another image, there are mouse cages. Hundreds of them.

We know that the Wuhan Institute of Virology was using humanised mice for experiments to see which coronaviruses could infect humans. In some experiments, they used the humanized mice to make viruses that couldn't previously infect humans do exactly that. These experiments called gain-of-function aim to make viruses more infectious and more virulent to try and predict which may cause a pandemic. This footage, had it been available early last year, may have reshaped the entire

narrative around the potential origin of COVID-19. Back then, we were told there were no bats at the lab, but we were told that disease-ridden bats were sold and butchered at the wet market. You'll remember this led to calls from presidents and prime ministers the world over to shut down wet markets. And videos did the rounds of Chinese people eating bat soup. In fact, bats were never sold at the Wuhan wet market and the videos were nonsense. Dajik must have realised his public statements from December 2020 were wrong when he claimed it was a conspiracy to say there were bats in the Wuhan lab. He said, we didn't ask them if they had bats.

I wouldn't be surprised if like many other virology labs, they were trying to set up a bat colony. Okay. Wow. Sorry for subject. First of all, they need to read faster in Australia. We need that on 2.0. Yeah, I need that at like 3x or something like that. It's driving me crazy. But look, she actually did do a decent job of laying out the facts there, which is that Dr. Peter Daszak, who for everybody, just a refresher. If you're new to Lab Leak 101, here's the chain of events. Dr. Fauci, who we all know, the hero of the pandemic. He's the head of the NIAID, the National Institute of Infectious Diseases. Anyway, he's in charge of giving grant funding. So he funded this type of research called gain of function research,

where he actually reversed the ban on it that the Obama administration had. That is the theory that in labs, you should manufacture new types of viruses so that you can then fight against pandemics. Well, there was a lot of conversation around gain of function because it was said to be dangerous and a possible lab leak. Okay. So part of the funding was funneled through a group called EcoHealth Alliance, which is headed by Dr. Peter Daszak. Now, Daszak, who has a direct hand here in funding the lab, also happened to be on the WHO World Health Organization investigation team into whether there was a lab leak. And he says there was no lab leak. When you ask him, he goes,

well, I asked them and they said there wasn't. But he also has been covering up a lot of facts which are not convenient. And as she said, as Sky News Australia pointed out, going and looking there at his past statements saying that there were no bats inside of the Wuhan Institute of Virology, he's just been outright proven false. And this just gives a lot more credence mounting circumstantial evidence to the hypothesis that coronavirus is what leaked out of the Wuhan Institute of Virology. Now we have the information about the sick workers in the lab. We have now about the revelation that there were bats inside of the lab. Almost nothing that these people said

was true has turned out to be true. And in fact, it turns out that if the lab leak hypothesis is true, it first of all implicates Dr. Fauci and Dr. Peter Daszak, but it implicates the entire scientific community because they are the ones who have been pushing gain of function research. And basically, they're the ones who covered this up from the very beginning because they don't want the money train to dry up. It all comes down to funding and to money. And now I understand we actually have an interview with the head of the Wuhan Institute of Virology with The New York Times.

Shocker. Let's hear what she has to say. So Dr. Xi, who's really the center of this whole controversy, and she's viewed in China as known as like the bat lady because she has made her career on studying bat illnesses, bat coronaviruses. And it turns out that, you know, she's in this interview, she doesn't really reveal anything new. But what's really fascinating is, remember how we played that sound of Dr. Fauci getting pressed by Rand Paul about like gain of function research. Like we never funded gain of function research at that lab using these very like lawyerly sleight of hand ways of defining it. She plays that same exact game here. She said in an emailed response to questions that her experiments differed from gain-of-function work because she didn't set out to make the virus more dangerous. Instead, to understand how it might jump across species.

Quote, my lab has never conducted or cooperated in conducting gain-of-function experiments that enhance the virulence of viruses. Let me ask you this. Do you think maybe it's a little dangerous to explore how a virus might leap into human beings? Like that to me seems like the definition of making a virus more dangerous. And in fact, that is some of the research that they were conducting in this lab. So again, she's playing these same, same games of saying, oh, it wasn't gain of function research because we weren't making the virus stronger. We were just seeing if we could get it to leap into human beings. Oh, I feel so much better now. That's fantastic. Now we have nothing to worry about. There's a part of the video we didn't play, which is that this is from 2017.

Song Donglin, who's the deputy director of the Wuhan lab, here's what he said. Quote, China had no prior experience designing or contracting BSL-4 laboratories. There was no prior experience in using and managing autoclave sterilizers nor life support systems for personnel.

Here's he adds, quote, over more than a decade, Shi Zhengli's research team has collected more than 15,000 bat samples in China and many countries of Africa searching for the origins of SARS This is the money one. As well as isolating and characterizing many new viruses. That, ladies and gentlemen, is what we used to call gain-of-function research,

but which Dr. Fauci and Dr. Xi don't want to call gain of function research. They're admitting it right here on tape before any of this came political. And here's the thing, as even the New York Times is willing to point out now, they have covered this stuff up from the beginning. Dr. Xi says that all of the insults against her are filth. i don't know like what are you guys even talking about here really what it is is that there's been zero transparency and that the people in charge the people who we trusted i mean think back april of 2020 how much trust did this country have in people like dr fauci and the surgeon general and even even dazak the epidemiologist

i'm sure i was one of many being like, hey, man, I got to hear what these people have to say. I mean, they're the ones who are in charge. And slowly but surely, you become deeply disgusted by seeing how, oh, well, there's a BLM protest, and apparently coronavirus doesn't matter. But it took a while in order to really say, OK, I can't trust these people anymore. But in that time, they abused our trust. They covered up a possible origin theory for coronavirus in Nature magazine with the help of Dr. Fauci, with the help of Dr. Peter Daszak. They became heroes to a huge segment of this population, also because of cable news and

appearing to be anti-Trump, like the scientists telling Trump how it is. Even today, Crystal, I think we both know one third of the U.S. population will never believe the lab leak theory, even if it's true, just because Trump said it. Because of MSNBC. One third of the entire U.S. population. That's crazy.

That's just totally, completely insane. What is really wild is that the bad actors, because there have been good actors in the scientific community as well. So I don't want to smear everyone who's a scientist. There's been some good ones. There have been some good actors as well. And you've got now a number of people have come out and said, look, we've got to look into this thing. Even if I think maybe it's more likely of the zoonotic origin, we've really got to figure this thing out. And this isn't about politics.

It's just about we've got to get to the root of this thing. But the bad actors here really very skillfully manipulated the media and the that signed on that just gave it the weight of like you've got on this side you've got all these credible scientists with their phds saying absolutely you can't have come from a lab and on this side you've got these crazy loons like donald trump and if you don't know anything about gain-of-function research if you don't know anything i myself just looking at the surface level... It's not our job. Like, why are we supposed to know? Looking at those things,

I'm not a science reporter. I'm not an epidemiologist. I'd say, yeah, those people seem more credible than, like, the Trump loonies and Tom Cotton and whoever else is out here. But, yeah, the people whose job it was to actually dig into this and consider the motivations

of the people at stake on both sides, they really failed. And they've essentially admitted that at this point that it was like, yeah, we were really blinded by the fact that it was Trump who was saying it. And you had scientists saying the other and we just caused us to dismiss it out of hand when we really should have done the digging and given it more credence. And now that Trump is gone and it's kind of safe, then they're able to return to their senses a little bit and hear some of the countervailing evidence and consider that, hey, maybe this lab leak theory isn't

so crazy or isn't just some like racist conspiracy theory like we ultimately thought that it was. Credit to Biden, at least. He said we need to have a real investigation. And the G7 also put out a statement. So credit where it's all due. 100%. He said it out on the world stage and that type of stuff does matter because it does drive the Chinese crazy.

But don't forget, which is that the Fauci emails revealed to us that the person who put out the coordinated Nature magazine statement about how there was absolutely zero saying that they had, what was it, no evolutionary characteristics or not consistent with evolutionary theory, aka man-made. And here's the thing. This all looks like it might have been a colossal accident, not just of the Chinese making, with the active complicity and funding of the United States government. That's what makes it such a scandal in the first place. And more than that, take all the politics out. Do we really want to be funding more of this type of research if this is what caused the worst pandemic in a century? I think personally, the answer is no. And if you're going to do it, prove to me that it's not dangerous

anymore. Prove to me that we're not funding maybe subpar labs in China and prove to me that it's actually necessary for science. But people have a right to have their voices heard because it's our dollars. But importantly, it's our lives. And we've just been totally failed on the story. I honestly think we already have our answer about whether this one ends up having come from a lab or not, clearly this is a huge risk. Clearly there's massive risk involved. And we do know that other viruses have escaped the lab. So it's not like so crazy to think that that could happen.

So in my non-scientific opinion, based on reading in a lot on all of this stuff to try to bring you guys the best information i think we already have our answer on gain of function research and you know what these scientists think it too because they are going out of their way to say no no no what we were doing that wasn't gain of function research we don't want anything to do with that so i think the tables on that one have already turned no i think you're right speaking of rigged systems indeed another private equity story for you guys this is is actually really stunning. So the New York Times got their hands on information that there have actually been several whistleblowers coming forward to the IRS saying, hey, private equity, these people are getting away with cheating on their taxes left

and right, at least three different whistleblowers. So when the New York Times dug into this, what they found is even though those concerns had been brought, the actual tax rules are rarely enforced against private equity managers, the people who are getting the distribution from these private equity funds, the rules are extraordinarily Byzantine and they are exploiting massive note. I think this is really interesting. So Trump administration gave private equity massive gift on their way out of office. A senior treasury official, I'm reading from the New York Times now, a senior treasury official whose previous job involved helping the wealthy avoid taxes, put into place new regulations. They represented a major victory for private equity firms. They ensured that executives in the $4.5 trillion industry,

whose leaders often measure their yearly pay in eight or nine figures, could avoid paying hundreds of millions in taxes. And wait for this part. Those rules were approved on January 5th, the day before the riot at the U.S. Capitol. And so hardly anyone noticed. But by the way, this isn't just a Trump story. This is completely bipartisan. Let me find the numbers here of the number of lobbyists. Private equity industry has a fleet of almost 200 lobbyists and has doled out nearly $600 million in campaign contributions over the last decade.

That's to Republicans and to Democrats. And that has repeatedly derailed past efforts to increase their tax burden at all. They have spent millions, hundreds of millions to rig the system to their benefit. And even that is not enough. According to these whistleblowers, they then even have to go beyond those technically legal loopholes that they fought for, but been fought for by spending lots of money in campaign contributions and actually commit illegal acts as well. Again, according to these whistleblowers, disgusting all the way around. And then the IRS has no money to actually audit them. That's the worst part. And speaking of Blackstone, this is Blackstone, to be clear, not BlackRock. Blackstone Group Chief Executive Stephen Schwartzman, who, you know, big friend of the Chinese government.

He earned $610 million last year, and he's going to pay federal taxes at a rate similar to the average middle class American. So that's interesting. And the more that you read all of this, not only in terms of the campaign contributions and more, but you actually see that they know they're not going to get audited because of something what they've created called a partnership system. Quote, one reason they fairly rarely face audits is private equity firms have deployed vast webs of partnerships to collect their profits. So partnerships do not owe income taxes. So instead, they pass obligations

onto their partners who can number in the thousands at a large private equity firms. That makes the structures complicated for auditors to untangle. Increasingly, this is the really bad part, the agency doesn't even bother. People earning less than $25,000 are three times more likely to be audited than partnerships whose income flows overwhelmingly to the richest 1% of Americans. I'm going to say it for what it is. This is rigged. This is a rigged system. If you're earning less than $25,000 in this country, you are poor. You are on the brink, one blown tire away from bankruptcy. And maybe you forgot to check a box or two,

or maybe you didn't report some cash tips or whatever from a job on your income. You know what? Uncle Sam should have nothing to do with you, especially whenever these types of people are creating partnerships and funneling hundreds of billions of dollars through this system, all 100% legally. And like you said, it's not even enough. They have to, on the way out, they have to write these little rules. And I love that this happened on January 5th. Because, okay, January 6th, it was terrible, right? It was obviously

a story worth covering. It's June 14th. And the lead story in the political news today, Biden was asked about it the day that we're taping it. Biden was just asked about a January 6th commission on June 14th while he's abroad talking about NATO. And show me one person, one real reporter who would actually bring this up, do a primetime segment about it and say on January 5th, 2021, the Trump administration, aided and abetted by the private equity industry, gave hundreds of millions of dollars in tax benefits to the wealthiest people in this country who not only were already wealthy, but made 10 times more than you did during the pandemic while you suffered in your house. That is an absolute outrage. And it's look, credit to The Times for doing the story.

But let's not kid ourselves. Nobody is talking about this in the way that it actually. Well, and let's go all the way back to what we were talking about at the beginning, the media and the things that they choose to cover. Right. So you could either have focused, again, no one here is saying January 6th was not horrible and did not deserve a lot of attention. We gave it a lot of attention and it has important ramifications for the country. I want to be clear about that. But the whole conversation about Trump has always just been about character. And if you had actually focused on things like this, massive loopholes, giveaways written by the dude who came straight from advising the rich on how to avoid taxes, you would have gotten a lot

further than you did ultimately. Now, instead, you're in a place where if Trump runs again in 2024, especially if he's running against Kamala Harris. Welcome back, President Trump. Good luck. Yeah. I mean, it's seriously you've left him in a position where people don't know that these are the type of actions that they were aggressively pursuing, giving the store away to the richest and most powerful among us. This one loophole, the carried interest loophole, you probably heard it named before. It's like the way that they're able to book revenue.

Instead of taking it as income, they take it as carried interest. So that one loophole cost the federal government $130 billion. Just that one thing. And we're not big. You've got to pay for it and balance the budget people over here. This is about basic fairness. This is about basic belief that this system that we have set up in this country is going to work for you and isn't wildly, disgustingly unfair and rigged for the people who already have the most. And so that's what this is really all about, because the moment that you lose that, and in a

lot of ways, that whole trust, any semblance of, oh, this is a fair system, you work hard and you pay your taxes and you make it to the top, that's gone. Stories like this just underscore it. And if you don't fix it, you're in a bad, bad place. So all these people look at, like, what can we do? The trust in institutions is so incredibly low. It's because of Fox News. Yeah, yeah, it's Fox News. Yeah. I mean, look, Fox News is not a great institution, but neither are any other media

outlets, by the way. And if you want to say which is worse, OK, you know, maybe I'd say Fox. But it's everything to distract from their own failings. The next thing that they would do after Fox News is like, oh, well, it's your fault because you're just buying into all these conspiracy theories and you're not educated enough or you're not right listening to the right programming or whatever is a corporate media responsible yeah but this is the thing too their bosses many of the people who invest in these companies or own them they're benefiting from the same thing so how are they supposed to report on this this is where it all i'm just sitting here thinking about somebody who's making less than 25 grand a year getting audited by the IRS and then having them,

these guys, funneling millions of dollars so they can buy new boats in Monaco or whatever in order to not pay tax. It is blood boiling just even thinking about that. And yes, I'm not a huge like, you know, you have to pay for it. Every line item since countries aren't houses, turns out. But it's about fairness and it's about buying into the system. This whole thing, America, the experiment. Look, nothing ties us together. It's not blood. You know, it hasn't been the case for a long time. It's not, you know, common cultural heritage. There's some of that, but not necessarily, especially in the cosmopolitan age. It's about belief in an idea and in being able to get ahead and more. That is slowly dissipating.

And the more that people see this type of story, I've said this so many times, people know the system is rigged. They just can't explain to you exactly how. And that's what really what we try and do here the most on this show. And the more that you have these types of developments and look, this will just continue to get worse and worse because I guarantee you maybe the Biden people won't be as brazen, but there will be some similar giveaway to the rich inside of the Treasury Department and it will just cascade and cascade. And like you said, then they'll be geniuses and run Kamala and then Trump will win again. And then it's over. This whole thing, it's just at that point, the amount of capital that they've accumulated, what are they going to do? Let's bring it back to earlier

the show. They're going to buy your house. Yeah. By that time, BlackRock will own your neighborhood. Yeah. By that time, they're going to do that thing that New York City landlords do, and they're going to screw with your property until you sell to them um and drive you out and they're going to make it so that you can't buy a house in this country soon you won't even own a car you'll lease it from black rock or blackstone um and you're not gonna own anything the only thing that you'll own is your cell phone so that they can track you all day and make sure that you know they go and they i'm starting to sound like a Jones. But listen, you know, I guess we're in the same city, so some of it's bleeding in here right now.

Well, yes. In happier news, we're excited to be on with Joe Rogan. Yeah, I know. Everything may be fucked, but at least we're going to get to talk to a big audience about exactly what's going on in the media. I know we're going to, I'm sure we're going to dig in a lot

into all of that. And honestly, I mean, look, you guys have shaken people up in terms of what you've accomplished, the support. A lot of mainstream actors, I mean, they didn't even know we existed. They had no idea what we were doing.

And so when in one week they see us popping up at the top of these charts, et cetera, it was an eye opening, eye opening moment. And so what does that actually mean? What does that portend? And that's not just about like Sagar and I and what we're doing here. But what does that say about the country? What does that say about the media landscape where things are heading?

There's kind of a great revolt underway as trust in these media institutions has completely collapsed and people are disgusted by some of the like overt advertising to all this stuff that just makes the whole enterprise feel sleazy and untrustworthy. So we'll dig into those pieces. I hope we get a chance to talk about some of this housing stuff that I think is incredibly important. We will. Look, the country's at a really – the world, I would say, is at this great moment of uncertainty. We're in this kind of in-between space, right? At least here in America, the pandemic is receding into the rearview mirror. And now we're left evaluating the wreckage and all these weird financial metrics and potential bubbles and people starting to quit their jobs and consider a different way of living. What is this all going to amount to? Who's ultimately going to benefit for it? How will it reshape our country? Those are gigantic questions that I don't think I think we

all have to have a lot of humility about right now as we're pondering, because there's just such tremendous uncertainty in a million different directions that could go. This is what politics should be about. Politics should be about, what does it mean? Matt Stoller put it well today. Politics is about what it's like to be a human in a society. It sounds very bland, but politics to people in D.C. is, why don't you support a January 6th commission? Or what's going on in terms of you and Putin?

Are you going to draw your red lines? And then meanwhile, people can't buy a house. BlackRock's eating it up. Private equity guy's getting tax cuts. The Wuhan Institute of Virology ended up having bats. It turns out this whole thing is like a total lie and has been for a year. All of these things are happening. And I don't hear about it anywhere else. I'm so excited to talk to Joe. It's going to be a fun conversation. And it's important. I always see it as our responsibility to try and elevate these types of deeper stories that have deep meaning and impact on people's lives and explain to them why the system is

rigged against them, why the media is lying to you. Sometimes it's intentional, but many times that the system is built in such a way that lies are the only thing that they're capable of producing or mistruths or pointing people in a different direction. All of these things happened over years and understanding and getting to a new place can only happen through understanding. That's what Joe is the best at. So I guess we'll have three hours to talk about it. Yeah. I'm sure we'll talk about chimps too. Yeah, we'll get to that. Yeah. Actually, Ryan Grimm had a great tweet about the Wuhan bats in the lab thing. He was like, they were running a wet market at the lab. Everybody was right. It turns out everybody was right. Eating bat soup

at the Wuhan lab. Now imagine that one. Oh, that would be something else. That would be something else. So just to review the slightly somewhat modified, quite modified schedule. So for today's show, we're going to go. We're going to be on with Rogan. That will post whenever that posts. We're going to have something like that. We're going to have a surprise for you guys on Thursday in lieu of the normal show.

We'll be back on Friday in the studio with Sagar's beloved desk for a normal show on Friday and then everything will be back to the new normal schedule next week. So thanks for hanging in

with us guys. But I think you'll be excited about all these different things. You guys are going to be really pumped. Apologies to everybody. We don't have a credit section or whatever in this show.

We have a very skeleton crew here down in Austin. But Friday, the normal show will be back. All out lifetime members who are inquiring. Your name will be in the credit section then, we promise. I know we update it weekly just so everybody knows in terms of when people sign up. And we're working on the plaques, guys. Yes. Those are a work in progress already.

They're literally being engraved somewhere a couple states away. I'm not sure. Whatever. They'll be here very soon. Shout out to all of you. If you guys want to become a premium member, you get to listen to the show completely uncut. You also can watch it uncut, you know, not as clips, all of that, and really just support the work of trying to bring people together here more.

The link is right there down in the description or crystallinesauger.com if you're listening there. Oh, we own breakingpoints.com now too, actually. So you can go there too. You can also check that one out. Anyway, we love you guys. We're so excited to be here in Austin and to talk to Joe Rogan. And we will see you all, I guess, what?

Tomorrow? Yeah, we'll see you tomorrow. If you're watching on Rogan's channel, we'll see you on Thursday. If you're watching on our channel for our big surprise, and we'll see you back in the studio with a beautiful new desk on Friday. That's right. No matter what day it is, you can't escape us, guys.

We'll have something going up somewhere. So enjoy, guys. We'll see you soon. I know a lot of cops. They get asked all the time, have you ever had to shoot your gun? Sometimes the answer is yes, but there's a company dedicated to a future where the answer will always be no. This is Absolute Season 1, Taser Incorporated. I get right back there and it's bad. Listen to Absolute Season 1,

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