The Philip DeFranco Show - PDS 12.17 CNN Fake News Scandal is Wiiild, Madison School Attack Updates, Veo 2 vs Sora Drama, & Today’s News
Episode Date: December 17, 20249 News Stories you should know about today... Kickstart your passion project with a free trial today: https://www.Squarespace.com/Phil & enter offer code “Phil” to get 10% off your first purchas...e! Get an exclusive NordVPN deal here https://nordvpn.com/phil It's risk-free with Nord's 30-day money-back guarantee! – ✩ TODAY’S STORIES ✩ – 00:00 - CNN Accidentally Helped an Assad Intel Officer Cover Up His Identity 03:02 - Teen Girl Identified as Shooter in Madison, Wisconsin 07:56 - Google’s Releases Sora Competitor to Immense Hype 11:24 - Sponsored by Squarespace 12:36 - TikTok Asks SCOTUS to Block Law That Could Ban the App 16:01 - Justice Dept. Says Mount Vernon Police Strip Searched Everyone They Arrested 18:32 - Trump Floats Privatizing the USPS 22:45 - Sponsored by NordVPN 23:49 - Canada Finance Minister Resigns, German Government Collapses 27:38 - Top Universities Sued Over Illegal Price-Fixing Monopoly —————————— Produced by: Cory Ray Edited by: James Girardier, Maxwell Enright, Julie Goldberg, Christian Meeks, Matthew Henry Art Department: William Crespo Writing/Research: Philip DeFranco, Brian Espinoza, Lili Stenn, Maddie Crichton, Chris Tolve, Star Pralle, Jared Paolino ———————————— For more Philip DeFranco: Apple Podcasts: https://podcasts.apple.com/us/podcast/the-philip-defranco-show/id1278424954 Spotify: https://open.spotify.com/show/6ESemquRbz6f8XLVywdZ2V Twitter: https://x.com/PhillyD Instagram: https://instagram.com/PhillyDeFranco Newsletter: https://www.dailydip.co TikTok: https://www.tiktok.com/@philipdefranco?lang=en ———————————— #DeFranco #MKBHD #Hasanabi ———————————— Learn more about your ad choices. Visit megaphone.fm/adchoices
Transcript
Discussion (0)
Sup, you beautiful bastards.
Welcome back to the Philip DeFranco Show.
You daily dive into the news.
It is Tuesday, December 17th.
There is a lot to talk about.
So you just buckle up, you hit that like button
and let's just jump into it.
This is a news show.
CNN just got caught spreading
what is quite literally fake news.
I'll explain, right?
So this actually begins with a story
you may remember from last week
with CNN reporter Clarissa Ward
searching for the missing American journalist,
Austin Tice in Syria.
But instead of finding him,
she found a padlocked jail cell in Damascus
with a rebel guard then busting it open,
revealing a man who identified himself as Adel Rabal,
a civilian abducted by the regime from his home.
I'm a civilian, he says.
I'm a civilian.
He tells the fighter he's from the city of Homs
and has been in the cell for three months.
Okay, it's water. It's water.
Okay.
Thank God you are safe. Don't be afraid, the fighter says. You are free.
After three months in a windowless cell, he can finally see the sky.
Thing is, right, with all of that, no.
It turns out that guy's not just some civilian.
Instead, he was a former Air Force intelligence officer
for Assad's regime.
His real name's apparently Salama Mohammed Salama,
and you can see him wearing military apparel in this photo.
The self-described Syrian fact-checking website
verifies Sai first discovering the man's true identity
on Sunday and calling out CNN.
With him citing local residents who claim
that Salama managed several security checkpoints
and was involved in theft, extortion,
and coercing residents into becoming informants.
With him also reportedly participating
in military operations in 2014, killing civilians,
and was responsible for detaining
and torturing numerous young men without cause
or on fabricated charges.
And with this, it's not clear exactly why this man
was in jail when he was found,
but you had locals telling the website
that he was there for less than a month
because of a dispute over profit
sharing from extorted funds with a higher ranking officer.
Also, some are saying it's not that surprising
this guy wasn't who he said he was.
Even before the truth came out,
people online pointed out things in the CNN video
they said didn't feel like it made sense,
like how he didn't appear to flinch or blink
upon supposedly seeing sunlight
for the first time in three months.
Or how he seemed clean, well-groomed,
and physically healthy.
And so now what we've seen is CNN correcting their reporting.
Corroborating the main point,
though not all of the details in the VerifySci report
by interviewing local residents.
As well as by using facial recognition software
to match the man's military photo to the jail footage
with over 99% certainty.
But with this, if you read CNN's update,
they make it sound like they just simply did
their due diligence pursuing more information
about the man after the original report on their own,
rather than, you know, posting the story
and then checking on things after getting called out for it.
But while you obviously had a bunch of people
dunking on CNN for this,
others came to the reporter Clarissa Ward's defense.
With one of those even coming from places like Fox News,
with the network's chief foreign correspondent,
Trey Yinkinks, writing,
the attacks against Clarissa Ward
are unfounded and ridiculous.
She is an honest and professional journalist.
With a number of people saying it's a standout response,
not only because he's a part of Fox News,
but because he himself went searching
for Austin Tice in Syrian prisons as well.
You know, with all of that said,
as we're seeing all these reactions play out,
I gotta pass the question off to you.
What's your reaction?
But then, unfortunately, we need to talk about
how a teen shooter killed two people
at the Pre-K through 12 Abundant Life Christian School
in Madison, Wisconsin yesterday.
With reports initially claiming that around 11 a.m.,
a second grader at Abundant Life called 911
to report a shooting with officers then dispatched.
But you had police clarifying today
that that wasn't entirely correct.
It was actually a second grade teacher.
But anyway, within minutes, the first officers rolled up
and by 11.05, they reported that the shooter was down
and a gun had been recovered.
With it then later reported that the evidence suggests
that the shooter took their own life.
Then by 1130, you had officers and bomb sniffing dogs
clearing the building and the injured
had been taken off to the hospital,
which on that note, six were injured,
two of which were students that as of this morning
are in critical condition.
And outside of the shooter, two people have died
with one being a teacher and the other a student.
And all of this is we still do not know the identities
of the victims while the police inform their families.
But with that said, we've slowly been getting
a clearer picture of what happened thanks to updates
from the local police chief, Sean Barnes.
Right yesterday, we learned that the shooter
was a 15 year old girl and a student at Abundant Life
and that the shooting was confined to a study hall
with a mix of students from different grades.
Also reportedly the gun used was a nine millimeter handgun
and the ATF is currently trying to figure out
exactly where it came from.
And this is the Madison police
who are investigating the shooter's parents
who are reportedly cooperating.
But the police specifically looking at
whether the parents owned the gun
that was used in the shooting and Barnes saying,
"'We also want to look at
"'if the parents may have been negligent.'
And that's a question that we'll have to answer
with our district attorney's office."
But saying at this time, that does not appear to be the case.
Now, as far as the motive, that still is officially unclear
though the shooting was reportedly planned in advance.
For example, CNN saying that a source told them
that the shooter had been struggling,
which she expressed in writings
that the police are currently reviewing,
which was also confirmed by Barnes this morning,
who said, we've been made aware of a manifesto,
if you want to call it that,
or some type of letter that's been posted
by someone who alleged to be her friend.
We haven't been able to locate that person yet,
but that's something we're going to work on today.
Now with this, the community there has obviously
been hit very hard, right?
They've planned a candlelight vigil for tonight.
A memorial has started to take shape outside the school.
We've also seen news outlets interviewing members
of the community with one mother saying.
It's sad, you know, to be home and then somebody call you
and say your kids school in lockdown and shooting,
and you didn't know where they are.
And thank God they were safe.
But the trauma, it's a lot. Because I'm sure they lost friends and teacher, which is not okay.
And I don't think they will be okay for a long time. And I'm not.
Also with all this, we've seen kind of the general aftermath that we normally see with
a situation like this. Many politicians pointing to Madison today
and their calls for gun control.
For example, Wisconsin representative Mark Pocan saying,
"'I've sat through so many moments of silence
"'on the floors of Congress
"'that are followed by zero moments of action.'"
But then also adding that he even had a media appearance
get canceled because the number of deaths was corrected
and dropped to two.
With him saying,
"'If that is a societal response, we are screwed.
"'We have to do more as a society.
"'We have to be more outraged
that you drop your kid off to a school
and you're not sure they're going to be safe.
That's completely unacceptable
and we all need to speak out much louder.
And there has been a lot of conversation
surrounding both the media coverage of the school shootings
and the overall response to them.
Like with CNN specifically,
they got some heat for interviewing students
who were in the building at the time of the shooting.
With a number of people responding by saying things like,
just seeing an eight-year-old girl getting interviewed
about the school shooting in Madison,
clearly traumatized after seeing her teacher shot.
Why are you shoving a mic and camera
into these babies' faces?
And as a journalist, y'all need to draw the line
and stop interviewing children.
They don't need to relive the trauma.
L for every journalist involved.
With also big online commentators in the space
like Ahsan Piker chiming in, reacting to the CNN clip.
One week before Christmas, a young student has been killed.
A teacher has been killed.
How will Madison, Wisconsin even begin to deal with this horrific day?
And Area Leader will join us next.
Dude, this is wild stuff.
I swear.
It's always like, it's just so commonplace.
It's just so commonplace at this point where it's like,
we have streamlined the coverage.
We have streamlined the coverage we've streamlined the
coverage immediately with them then later adding now we have like additional industries tasked with
designed with the purpose of extracting some kind of profit out of tragedies like this and yet we
always seemingly find a reasonable market solution and that doesn't mean that we're actually
eliminating the problem it's never about eliminating the problem. It's never about
eliminating the problem. It's about trying to triage and I guess like stop the bleeding by,
you know, making more money. Yeah. One man's tragedy is another man's opportunity.
Right. He's not alone there. Many have taken issue with people seemingly trying to profit,
whether monetarily or with attention from this shooting specifically. I mean, just one example
being that someone online actually shared what they said was the Madison Shooters Manifesto
with a watermark on each page.
Though I will say it's important to note here
that the police have still said they're not ready
to confirm whether this actually is
what people are saying it is.
But regardless, right, that watermark landed
the original poster in a world of backlash
with people saying things like,
"'An influencer watermarking a school shooter's manifesto
with their social media handle feels like an episode
the writers of Black Mirror rejected
because they thought it was too obvious.
But while we watch the public discourse play out
and we wait for more information
and confirmations to come in,
where I'll end this is by saying that obviously our hearts
and our thoughts go out to those in Madison.
But then in huge tech and AI news,
we gotta talk about VO2.
Because just a week after OpenAI's release
of its AI video generation model, Sora,
as well as it being in the middle of the company's 12 days of OpenAI, Google announces VO2, which is their AI video generation model.
With many also saying there that the timing of VO2's release is an obvious effort by Google to upstage and maintain dominance over its competitor.
And a big thing there is that many are saying that they're succeeding and claiming that Google software, it absolutely blows Sora out of the water. With that, including the likes of, you know,
Everyday Jane and John Doe,
as well as alleged speeding enthusiasts
and tech reviewers like Marques Brownlee.
Notably here, we've seen sharing some VO2 generated clips
and saying, if these handpicked examples are real,
they look better than anything I've gotten out of Sora.
And as far as why, you know,
one of the biggest criticisms against Sora so far,
and it's something that MKBHD actually highlighted
in his review, is that Sora seems to have issues
trying to capture movement in a way
that looks natural to the eye.
Google, however, is claiming that VO2,
they just do it better with a press release,
for example, saying,
"'VO2 brings an improved understanding
"'of real-world physics and the nuances
"'of human movement and expression,
"'which helps improve its detail and realism overall.'"
And adding, while video models often hallucinate
unwanted details, extra fingers or unexpected objects, for example,
VO2 produces these less frequently, making outputs more realistic.
And then with that, you pair it with things like this VO2 clip of someone shuffling cards,
which you can judge for yourself and had people saying the AI tells are getting harder to spot, but they're still there.
And another adding, this is actually pretty impressive.
It didn't lose consistency or anything.
It looked like a real person shuffling cards.
But then also, besides that, it's argued that there's some other potential advantages
to VO2.
One, it's supposedly supposed to have a better understanding
of cinematic language.
Like so for instance, you can reference a specific genre
of film, cinematic effect, or lens when prompting the model.
With someone demonstrating this,
sharing the prompt that they use to generate this clip
of a car drifting through city streets.
And then finally, in theory,
VO2 can produce clips longer than two minutes
with resolutions reaching up to 4K,
which is four times the resolution
and over six times the duration of Sora.
Though I also say that as in reality right now,
VO2 is currently exclusive
to Google's experimental video tool, VideoFX,
where videos are limited to 720p and eight seconds long.
So technically speaking,
Sora sort of has the upper hand
with 20 second videos at 1080p right now.
And then of course, the thing to remember
and what people have been pointing out is that with Sora,
that's been out for a week, but right now we're still seeing
mostly Google's best examples.
So we've been there, you have some saying today's video
is more impressive than the past perfect examples
from Sora.
But of course, as we always say with these stories,
it's important to remember, this is the worst
the technology will ever be again.
And it does feel like everything is improving
by leaps and bounds faster and faster.
And so there's really only two different outcomes here.
One, eventually this will hit a ceiling, a wall,
it can't get any better,
or it will genuinely be indecipherable from real life.
And at that point, it just becomes a question
of who has access to it, how much does it cost,
and how much can people use it?
Or the more classic barriers to entry
rather than what is the technology capable of?
And then from there, there are more of the concerns
that we've kind of started to see more and more
in the recent years.
One, whose content is being used to train these models
and who are the models replacing?
And then two, what nefarious fucked up shit
might they end up being used for?
Or whether it be deep fakes, misinformation,
harassment and chaos.
Because obviously when I see these advancements,
there's one part of my brain that's like,
oh, that's gonna be, I could make like a bunch
of really cool like short films and fucking cool projects. But then of there's one part of my brain that's like, oh, that's gonna be, I could make like a bunch of really cool, like short films and fucking cool projects.
But then of course the other side of my brain,
the bringer of sadness that has seen
the evolution of the internet over the past two decades,
it's reminded that the worst is gonna come out of people.
Every advancement is a weapon in the wrong hands,
especially when the guardrails aren't there
or fully thought out and everyone's just trying to do shit
as fast as possible.
But then taking a quick break from the news,
you know, how many of you kicked off 2024
promising to finally turn a passion project into profit?
Launch a business or a lucrative side hustle or side hobby?
Because for me, you know,
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But then we should talk about TikTok
because we have almost exactly one month
until it could be banned in the United States.
And with that, yesterday we saw the company
ask for the Supreme Court to stop this.
Because at the center of this,
you have the Protecting Americans
from Foreign Adversary Controlled Applications Act,
which would ban the platform
unless it's sold to an American company.
Something that was passed by Congress and signed by Biden
and is slated to go into effect on January 19th,
which is the day before Donald Trump moves back
into the White House.
And what we've seen since it was signed by Biden
is that TikTok has thrown a lot of different challenges
at the wall, and yesterday it barked up SCOTUS's stream, with their filing saying the act will shutter one
of America's most popular speech platforms the day before a presidential inauguration. This,
in turn, will silence a speech of applicants and the many Americans who use the platform to
communicate about politics, commerce, arts, and other matters of public concern, with it then
further claiming that small businesses and other people who make a living on the app will suffer
monetary harm. And so they're asking the court to block the law
by January 6th and further arguing that Donald Trump
and his incoming administration,
that they have expressed some support for the app.
You know, on that note, Trump did previously say
that he would save the app.
And he also met with the CEO of TikTok yesterday
at Mar-a-Lago, with then Trump speaking
to reporters yesterday where he then partially credited
TikTok for his victory in November.
We'll take a look at TikTok.
You know, I have a warm spot in my heart for TikTok. TikTok had an impact and so we're take a look at TikTok. You know, I have a warm spot in my heart for TikTok.
TikTok had an impact and so we're taking a look at it.
Though then notably Trump declined to further say
what he was looking at or planning to do on that front.
Right, but then all of this is also coming as creators
and users of the app are kind of hitting
an oh shit realization that a ban might actually come
to fruition in just a few weeks.
Right, and there, while the ban wouldn't remove the app
for those who've already downloaded it or geo-block,
it would force companies to take it off app stores
and prevent it from being updated.
With the belief being that without updates,
it would eventually become too buggy to work.
And so while the looming thread of a TikTok ban
has existed on and off for a few years,
users now are really starting to take it seriously.
Which is why, you know, if you scroll through the app,
you're seeing tons of people commenting
on their favorite creators' videos,
wondering how they can still find them
if it gets banned in January.
But then tons of creators trying to get people to find them
on YouTube and Instagram, trying to sort of preemptively
move their following there. But then also you have others fearing that it's just not going to be the
same, that without the TikTok algorithm, that everything that they've built could just be turned
to dust, which is a very valid concern. There are going to be some winners and losers regarding
trying to migrate your audience to different platforms. That is the ultimate test of if you
have people that kind of follow your content or they're legit fans. And these big moments,
they have a tendency to make and break careers. With one of the most famous examples,
I think, being Vine. Some of the biggest YouTubers and content creators in the world actually got
started on Vine and were able to shift their audience off platform before it died. Though
that really only worked for the biggest names on the platform. But then, you know, going back to
TikTok, there's a question of, you know, where are any potential battles standing right now? And
there, you know, we've seen a U.S. Court of Appeals already rejecting one of TikTok's challenges. But
then there's also, as the New York Times is saying,
that there is a chance that SCOTUS will see it differently,
though we don't really know for sure, explain it.
The court has shown keen interest in recent terms
in the application of free speech principles
to giant technology platforms,
though it has stopped short of issuing definitive rulings.
And so for now, over the next month,
we will likely see creators scrambling
as the app hangs in this weird limbo.
But with that, I'll say this, two creators out there.
One, to the TikTok creators out there,
you should definitely be trying to move people
off platform to any and all platforms.
Then also too, for every creator,
you should always be doing this.
Or you never wanna have all your eggs in one basket.
Algorithms change, people get de-platformed, shit happens.
Be an infectious disease, be everywhere.
You know, it's part of the reason you can find this show and or clips of it on pretty much every social media platform except
Blue Sky and X, but that's because I'm lazy. But then it's also why we have things like,
you know, the text line 813-213-4423 for people in the United States and Canada,
as well as why we have the Daily Dip newsletter to go straight into people's mailboxes. It's just
another version of hope for the best, plan for the worst. And then, so you may not know this,
but having your asshole visually inspected is not,
or rather should not be a part of every single arrest
a cop makes.
Yet apparently if you had it just north of New York City
to the suburbs of Mount Vernon,
that was a guarantee for years.
We now know that thanks to the Department of Justice
wrapping up its investigation into the Mount Vernon police
and releasing their findings.
And the top line here is that the department
performed strip searches and or cavity searches
on every single person it arrested
until at least October of 2022,
a practice that the Department of Justice
called a gross violation of the Fourth Amendment
on an enormous scale.
With the DOJ also saying that the officers
performed strip searches on people they didn't even arrest,
as well as when they even had no reason to believe
that the person had drugs or other contraband.
And in fact, several people said
that officers had searched them repeatedly even when they even had no reason to believe that the person had drugs or other contraband. And in fact, several people said that officers had searched them repeatedly,
even when they had been in custody
and under police observation at all times
between the searches.
With the report also detailing one case
that it said was emblematic of the department's shortcomings.
Right in there, he had two women, ages 65 and 75,
arrested during a traffic stop on suspicion of buying drugs.
When the cops searched the car, they didn't find anything,
and so they took the women to the station
for a fully nude strip search,
where, according to the report,
the pair were told to bend over and call.
But once again, no drugs were found.
And a later internal probe found
that the cops had actually lied
about the women buying drugs.
So then as far as their punishment,
they got a few less vacation days.
So shit like that just reportedly kept happening
until at least 2023.
Although the department curtailed the practice
while the DOJ investigated,
the investigators still concluded,
we are not confident that these practices have ended.'"
But also, that was just the strip-searching stuff.
There were also more garden-variety
civil rights violations covered.
Hitting on things like arresting people
without probable cause
and necessarily escalating minor encounters
and overusing tasers and close-fisted strikes.
But apparently, that last one happening to people
who had already been taken to the ground
were controlled by many officers or were already restrained.
Now with all this, going to the other side,
in response to this, we've seen the city so far
seeming relatively receptive to working
with the DOJ on reforms.
For example, Mount Vernon's mayor saying in a statement,
"'We have never run from this issue.
"'We wholeheartedly support our good officers
"'and at the same time will not tolerate
"'and will punish unconstitutional policing.'"
And to their credit, the police have taken some steps
since the probe first opened.
Like for example, working to equip all officers
with body cameras and less lethal weapons,
as well as revising their policy on strip searches
and offering training on the practice.
But again, some say that it's also doubtful
whether a few immediate policy changes
can fix the deeper rot at the department.
Or because this report notes that it suffers
from financial mismanagement,
which makes all the other issues worse.
So for example, if you can't pay good salaries,
you can't attract and retain quality officers.
And this on top of it making it much harder
to train staff and pay bills.
And this also is as important to remember,
this is just one of about a dozen investigations
into police agencies across the country
happening right now.
And then we need to talk about Donald Trump
wanting to privatize the US Postal Service.
Because since Donald Trump won the election,
there's been speculation about whether he might try
to take the USPS private.
And yesterday he publicly confirmed
that this is on the table.
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Talk about the Postal Service being taken private. You do know that.
Not the worst idea I've ever heard. It really isn't. You know, it's a lot different today with between Amazon and UPS and FedEx and all the things that you didn't have.
But there is talk about that. It's an idea that a lot of people have liked
for a long time, we're looking at it.
Now with this, I will say this should not be surprising,
right, Trump's disdain for the USPS, it's not a secret.
He has repeatedly slammed the agency and called it a joke
that loses massive amounts of money.
He also previously tried to get the mail carrier
to hand over key functions to the treasury,
threatened to withhold COVID aid,
and installed a controversial postmaster general
who made massive cuts, criticized by both the Republicans and Democrats
for hurting service.
And hell, this also wouldn't even be the first time
that he's tried to take it private,
with his White House actually proposing a plan
to do just that back in 2018.
Though I will say, as far as any specifics
of how Trump would overhaul the USPS now,
that remains unclear.
But you do have the Washington Post saying
that sources did tell them that Trump said
that the government shouldn't subsidize the agency anymore,
citing financial losses.
With that, in reference to the fact that the service
lost $9.5 billion in the last fiscal year.
But also, ending subsidization of the USPS,
it's not the same thing as privatizing the carrier outright.
Because while the service does receive federal dollars,
it's mostly self-funded,
relying primarily on its own commercial activities,
like selling postage, products, or services.
Which also helps explain why it lost so much money last year.
That is a massive operation to sustain.
But with that, it's argued that gutting
the more limited federal money it does receive,
it would just further undermine the agency's ability
to do its job.
And this is you see experts out there saying
that privatizing agency would not fill those gaps
and instead just create a whole host of other problems.
And that is greatly because unlike private competitors,
such as Amazon or FedEx, the overarching goal of the USPS,
it's not profit, it's access.
Where the agency is governed first and foremost
under what's known as the universal service obligation,
which requires it to provide equal service
everywhere in the country,
regardless of how remote the location may be
or concerns about profitability.
And you have experts saying that privatizing
the postal service would inevitably put an emphasis
on profit that could result in cutting access
to rural areas that aren't as profitable.
And that's just one potential downfall.
They also say that taking the USPS private
could result in longer delivery times,
fewer days of delivery and increased prices for consumers.
And a really big thing there is this wouldn't just affect
people who use USPS.
Because here's a fun, interesting fact for you.
The postal service's single biggest customer,
it's actually Amazon.
Because they use the USPS for last mile deliveries
made between Amazon fulfillment centers and consumers' homes or businesses. And it's not like, because they use the USPS for last mile deliveries made between Amazon fulfillment centers
and consumers' homes or businesses.
And it's not like everyone who lives in a rural area
could just switch to Amazon or FedEx if USPS goes private
and is forced to prioritize profit over access.
Or because those companies, they already don't serve
a ton of super rural areas because, say it with me,
they are not profitable and profit is king.
Which is why we're seeing experts saying,
taking the USPS private, it would completely upend
the trillion dollar e-commerce industry
and disproportionately impact small businesses
and rural consumers who rely on the service.
And then in addition to totally fucking up consumer shipping
and business supply chains across the country,
experts are saying that privatizing
the nation's mail carrier
could cost hundreds of thousands of federal jobs.
But you know, we'll have to wait to see if this happens
or if it's doomed on arrival.
And that, you know,
because in part any attempt to privatize the USPS
or even just ending its universal service obligation
would likely require an act of Congress.
But then also I'm just fascinated
to see how all this would play out.
Right, and that is in part
because the people who would be most affected by this,
who understand everyone would be impacted,
would be those who live in rural districts
who vote for Republicans at a higher margin.
But of course that requires us getting
to the finding out part after fucking around.
And currently it is unclear if Trump could get enough support
to actually do this,
especially because his previous attempt in 2018
broadly failed to gain traction.
You know, new times, new Congress, new vibes,
especially because there are still other ways
that he could gut the agency without taking a private
or eating the consent of Congress.
Right, he could cut off the agency's access to loans
from the treasury department,
which is something that the administration attempted doing
during the first term.
Beyond that, people who will work
on the Department of Government Efficiency panel
led by Elon Musk and Vivek Ramaswamy,
they've also reportedly been having conversations
about major changes to the postal service.
But it's also saying Musk voicing support
for privatization on X.
But again, this is any proposed cuts
the Doge Commission recommends
would likely have to be approved by Congress.
But you know, we'll see what happens.
January 20th is just around the corner. Then, taking a quick breather from the
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But then, political instability worldwide
is kind of the name of the game right now.
Just this month, we've been talking about
the martial law attempt in South Korea,
mass protests in Georgia,
the collapse of the French government,
and now we're turning our attention
to the crises of competence in Canada and Germany.
We're talking about two countries
that many largely see as kind of these pillars of stability in the West.
And so let's start by talking about Canada, because there the government of Prime Minister Justin Trudeau is on the brink.
And notably, U.S. President-elect Donald Trump is partly to blame or think, depending on your point of view.
Because this largely has to do with the abrupt resignation of Finance Minister Chrystia Freeland.
And she's long been one of Trudeau's closest allies.
And in fact, she's the person many expected
would succeed him as leader of the liberal party.
But now just hours before being scheduled
to deliver a fiscal and economic update to parliament,
she stepped down with a public resignation letter
blasting Trudeau's approach
to handling another Trump presidency.
With her saying in that letter
that she came to this decision after Trudeau said
that he no longer wanted her to serve as finance minister
and instead offered her another position in his cabinet.
And so with all of that,
she said that the two of them found themselves at odds
about the best path forward for Canada.
Also a key thing is that she specifically cited disagreement
about how to respond to economic threats from Trump,
writing, our country faces a grave challenge.
The incoming administration of the United States
is pursuing a policy of aggressive economic nationalism,
including a threat of 25% tariffs.
We need to take that threat extremely seriously.
And you know, speak of the devil,
Trump himself responded to Freeland's resignation,
writing on social media,
"'Her behavior was totally toxic
"'and not at all conducive to making deals,
"'which are good for the very unhappy citizens of Canada.
"'She will not be missed.'"
With Trump then also insulting Trudeau
as the governor of Canada,
which is a quip that he's been making the last week
when joking about Canada becoming the 51st state.
And you know, with all this,
the hits have just kept coming for Trudeau. I mean, just today, right, a day after Freeland's
resignation, his party lost a special election in the Western province of British Columbia,
which was a wild loss because that was a seat that they had won with 39% of the vote in 2021.
And their party is now only getting 16% compared to the Conservative Party's 66%, which is also
why you might not be surprised to learn that the pressure for Trudeau to resign is now at an all time high.
And this is a guy who's been in power for nine years now
and his approval rating has plummeted from 63%
when he was first elected to 28% in June of this year.
Not to mention at least seven members of his own party
have publicly called for him to step down now
with more reportedly having done so in private.
Whether he resigns or not, his days probably are numbered
because Canada's next federal election
must be legally held by next October.
But it's also possible to happen earlier than that
if Trudeau calls for one
or if lawmakers trigger a no confidence vote.
But really, whenever it happens,
unless something drastically changes in the world
or specifically in Canada,
it's believed by many that it won't be enough time
for Trudeau to recover.
But then on that note, it's time to talk about Germany
because there, Trudeau may be getting something
like a sneak peek of his own future.
There's now seeing Chancellor Olaf Scholz
losing a vote of confidence in parliament,
which means that Germany will hold new federal elections
in early 2025, likely in late February.
So we're talking about seven months earlier
than originally planned.
And with that, a key thing here is that
Scholz himself called for the vote, right?
And that's because his governing coalition collapsed
last month when the Free Democrats Party withdrew,
leaving Scholz's Social Democratic Party
in a minority government with the Green Party.
And after that, the political pressure on him
to call for the vote became overwhelming.
And if he had waited longer,
it's expected that his party would have actually done worse
in the upcoming election.
But in the meantime, while obviously
of people concerned in Germany
about the instability and uncertainty,
the impact of all this, it's much bigger.
Especially when you consider
that this is not like an isolated thing.
It's happening just weeks
after the French government fell apart,
with a new prime minister there being named only days ago,
and the situation's still fragile.
And this is Germany and France,
the most influential countries in the EU,
and these domestic political crises,
they're just exacerbating a crisis of leadership
at the European level.
I mean, this is happening at a time where,
one, there's all sorts of economic challenges
that the continent's facing,
and two, the war in Ukraine's really reached
a pivotal moment,
especially with Trump's such take office in the United States.
And now Germany, which is Europe's largest economy,
it's gonna be in the hands of a caretaker government
that can't really make major policy decisions.
You know, for now, we're gonna have to wait to see
what all happens, what this means
over the next couple of months,
and then also beyond that,
what the long-term consequences and opportunities may be.
And then, we should talk about some of America's top schools
running in a legal monopoly that costs 200,000 students
over $685 million extra to get their education.
Rather, at least that is what lawyers claimed yesterday
as part of an ongoing case that stretches back to 2022.
And at the center of the suitor accusations
at schools like Georgetown, Notre Dame,
University of Pennsylvania, MIT, and others,
price fixed admission costs by placing too much emphasis
on a student's ability to pay,
leading to artificially higher prices
for those who are relying on financial aid.
The really wild thing is that some of the price fixing
is at least superficially legal.
So the schools had formed a group
called the 568 Presidents Group,
named after a 1994 exemption to antitrust laws
that let schools collaborate on financial aid
as long as they used need-blind admissions,
which is really just a different way to say
that schools were required to consider applicants
regardless of their income or financial status. But the schools allegedly did
the opposite in many cases and sometimes gave preferential treatment to those from rich families.
For example, the suit alleging that Georgetown University's then president would allegedly make
a list of about 80 applicants with the words, please admit, written at the top every year.
And this list did information about their parents' income and past donations. However,
it would often lack their transcript for anything else you'd normally associate
with applying to a college.
With a suit saying similar things also happened
at MIT and Notre Dame,
with it pointing to a pattern of considering income
when admitting students in direct violation of the law.
In the schools considering income,
that is a major deal for this lawsuit
because if they did,
then they automatically don't qualify
for the antitrust exemption on financial aid pricing
and would be super screwed.
So again, it said that the ability to pay more
for a school upfront was a major factor
in who was admitted to a school,
raised the prices and caused those on financial aid
to pay more out of pocket themselves.
So in the end, this allegedly made the schools cost
that $685 million extra for low and middle income students
who claim that they should have been given more aid.
And with this, it's not shocking that a big motivation
for considering how much a student's family had
was the hope that that would lead to more endowments.
Reportedly, there's evidence that it may have worked
as the endowments these schools got from 2003 to 2022,
they skyrocketed to over $220 billion.
And seemingly, this case has some legs
as the plaintiffs have had some success so far
with this suit.
Initially, 16 schools were part of the lawsuit
before a 17th was added,
but 10 of the schools have since settled
to the tune of $284 million so far.
Though, as we often see with settlements,
there is language of admitting to no wrongdoing.
As far as the money, that'll be added to a pool
that will eventually be paid out
to the 200,000 students affected across every school,
not just those from the 10 that have settled.
Brain all of this as Cornell, Caltech, Georgetown,
John Hopkins, MIT, Notre Dame, and Penn
are still fighting the suit.
I will say fighting could be really risky
since this is an antitrust case
and thus any damages are tripled,
putting the possible judgment at over $2 billion.
Now for their part, the school still denied
that they actually did anything wrong
during that time period.
They instead claim that they largely had
generous financial aid policies
that have only expanded over the years.
In some cases, those aid packages can be substantial,
such as Caltech, which covers tuition, fees, housing,
and food for students for families
that make less than $100,000,
and tuition for families with less than $200,000.
With that, I think it's important to know
that there has been pushback.
Because yes, you have people saying,
these schools do often have amazing financial aid packages,
but that's now.
And arguing that during the time period
that this lawsuit covers, that was not the case.
And often, they could have offered 10 to 20% more,
but didn't with a co-lead attorney saying yesterday,
"'Our motion today spells out very substantial evidence
"'supporting our claim that the defendants colluded
"'with each other for 20 years on financial aid,
"'and the illegal collusion resulted in the defendants
"'providing far less aid to students
"'than would have been provided in a free market.'"
But for now, that is where we are,
and we'll have to wait to see how all of this plays out.
With that, my friends, is the end of your Tuesday evening,
Wednesday morning dive into the news.
As always, thank you for watching.
And remember, my name's Philip DeFranco.
You've just been filled in.
I love your faces
and I'll see you right back here tomorrow.