Mock out again and you know this is the standard style a very stylish and moscow to wear your own jumped up you know they were this even over 30 below 0 you can you can be made from the forehead down if you have your in shock on if you like your miami beach right is the amazing Russian Technology there so i know i did almost forgot here this is a 2 can i got also on the sale simply because i thought it would be a good friend for plucky you know plucky lonely a lot of times hes a manic depressive isnt it so i get him a nice 2 can like this you can have fun plucky the point is that one participates in one of these shopping stampedes and pretty much you put the stuff on the shelf and never use it again but you feel better because you got a 50 Percent Discount well you know a lot of robin hood traders look at the markets and think theyre getting 50 or 60 or 70 or 90 percent just. Counts when a company on the verge of bankruptcy their shares collapsing like wow a 90 Percent Discount before it declared bankruptcy it was 100. 00 now its only 10 what a bargain right well 20000. 00 robinhood traders are in for a rude surprise as c b l prepares to file bankruptcy bloomberg reports small operator c. B. L. And associates is preparing to file for bankruptcy the headline hit after hours on friday sinking shares by at least 20 percent and you could see shares collapsed by 20 percent then they opened down 23 percent on monday mornings incredible you know these rabid traders are really learning some important lessons about trading stocks and because in this case the perception that become something has dropped 90 percent that it cant go any lower and of course people who are experienced in markets know that if its dropped 90 percent the chances of it dropping another 90 percent are actually quite high things that are trading at all time highs tend to trade at new all time highs things trading at all time lows tend to trade at new all time lows thats a very subtle and kind of nuanced real fact of trading you find it in books like reminiscence of a stock operator by just livermore written in the 1920 s. Conserve the bible of trade if you really want to learn how to trade these things i suggest you read that very slim book and educate yourself on how these things actually work but jeff when robin hood apps these kids jency i dont mind picking their pockets every day i can see where theyre making the mistakes i just capitalize on their naivete but in my view im helping them learn its like i could give money to the college fund of america or d i could help robin hood traders lose money into my pocket well this is an interesting chart you can see the green line here is the users of robin hood app versus the price of c. B. L. And you see as it keeps on going down and it keeps going down robinhood apertures keep. Piling in just for fun i went over to twitter and entered the house and a dollar sign c. B. L. To look at what people are talking about these day traders were saying on Twitter Holding c. B. L. And buying more to average down confident theyre going to reach an agreement with the banks are selling. So this is somebody on july 18th the day then they basically were filing for bankruptcy so there are agreements in place with creditors that the creditors when you the equity holders lose as weve said many times as they keep on piling into these bankrupt companies yeah these robber who traders would be buying deck chairs on the titanic. Because the price keeps going down and theyre really cheap about a dollar a share im going to buy more while im on the lifeboat we. Could do it to do it in the dot com days when i guess it was really generation x. Participating in the dot com days and the last of the boomers like yourself and you know people are piling in on these companies that had no earnings because they had bought like a u. R. L. Like pets dot com but these were companies that were in the beginning of not only a Tech Industry which was still quite new at that point and you know the World Wide Web you know monetizing that that was brand new at the time in the late ninetys but also like these companies at least you could imagine that they might grow into something huge like pets dot com or whatever even the Infrastructure Companies that did fall after that the hype that once everybody realized like the power of the possibility of the World Wide Web they went bonkers right well with these sort of bankruptcy speculators these shopping stampedes to invest in bankrupt companies theyre literally companies at the end completely of their life cycle hurts over 100 years old it was one of the 1st of the rental Car Companies now were in the day and age of. And other rise sharing out. That started to destroy that business and were in a post pandemic world well not yet but one day we might be and people Business People arent traveling anymore malls dead theyre not coming back and theyre buying these bankrupt companies a Whiting Petroleum the oil hole oil industry dead so these end of life cycle that these Young Robin Hood africa are piling in to yeah i think thats a remarkable kind of insight and interesting point there that the gen x. And the last the baby boomers were speculating in the night seem ninetys on the birth of companies that went public for the 1st time and they would have these pops and then there was this enormous crash here the millennial zinj and theyre speculating on the death of companies and companies that are dying and declared their dead companies and their client plowing their way in to speculate on the death of a company so there seems to be a very elegant kind of comic circle being squared here im not exactly sure what it all means but it is quite beautiful well i think its kind of a trickle down situation if you look at the these people piling into dead companies now only dead companies but dead industry dead Business Models. Look at the chart from the United States the government the treasury monthly u. S. Surpluses and deficit since 1980. Look a huge the deficits are getting lookout more and more bankrupt slowly and then suddenly its becoming bankrupt and yet you see you know investors around the world many of them from this mysterious caribbean area piling into treasuries theres often. Excess demand for negative yield in bonds i mean were making fun of these millennial is and gen z. Buying up robin hood app you know shares on robin hood apple bankrupt companies and dead Business Models but the same thing globally with investors Bond Investors doing the same thing theyre being paid you know theyre paying governments to borrow from them so like how much less insane how much of a stampede at the supermarket like we all make fun of those walmart rioters and were making fun of the robin hood app rioters and what about the bond traders well its almost short termism so to the appeal of buying negative Interest Rate bonds is the greater fool theory thats always going to buy after you bought it and you can get a short term profit in the reason why short term profit seeking a so power monster days because people are broke theyre bankrupt and their drug addled and theyre drawn. And you put them on line with free trading on an app and they do stupid things so the secret of course is to get rich slow but nobody has 20 years to do that everyone has to make money in the next 20 minutes or face to creditors and that includes institutions Pension Funds united State Government is trying to make money in the next 20 minutes otherwise its going to have to declare bankruptcy and thats unfortunate but true so it the risk gets more extreme like a gambling addict at the casino they only have one bet left before theyre taken to prison and they put it all on a road about the roulette wheel thats. America now that its bankrupt no more defense ability. The crowds blown out there like were going to put their entire future to the chi for a road spin that rule that will maybe maybe it will what you know fred smith who is the founder of fed ex actually the company was down to us last 5000. 00 or 15000. 00 he did go to vegas he did put it on the roulette wheel he did win a save the Company Without that lucky spin in vegas fed ex the company would never have survived ok but that was a one in the 10000000000 shot you can roll the entire future of the country on a rule on a spin of the roulette wheel well don it finally and. I want to point out to the last seconds here i do want to point out that you know just like those robin hood app traders are hoping for something that never what happens in real life which is the bankruptcy that equity holders are going to make any money the same with all the investors in this failed Business Model of a global system based on the u. S. Dollar any currency would fail and that reserve currency but were all a doubling down on this hoping like some sort of miracle the bankruptcy judge basically makes us all whole can link up. The phone about the. Well well be back after this moment ago it. Sounds forced and illegal takeover of the government by a small group. Rather than a revolution resource will just thats the operation when you have a tiny drip of people who have all the power you have to have some means to make sure the rest of us dont get together and take it back. These are sacrificing. Places that capitalism exploited and destroyed for profit and left behind. Misery poverty environmental devastation and so you see things like Voter Suppression building more prisons you seem gerrymandering all sorts of undemocratic practices are well inside out world were well into the 1st world and theres no question that the coup detat. The world is driven by dreamers shaped by phone person with those words. No dares thinks. We dare to ask. I 1st heard about we do know. From the helicopter folks in iraq. I think that there are people in the know going to its military who have never forgiven for. The struggle for a good truthful. Book and a little bit of illusion. It was really starting to happen. In the penguin journalese that youve heard of serious a lot of crimes to open up an audience. The idea of developing an anonymous digital trombone and applying it to lead to a consensus. That was approached. To control interest and it would be crucial. One of the worlds most powerful. News will. Carry astonishing anderson our founder to the song get a song going on. And there was a great deal of jealousy in the minds of her for the song why wont it be more like all that q. Seen all for. Instance when. Shes mine im good. For her and. We have julia was in solitary confinement in the prison for terrorists i wait you dont have a live person. I dont see him dying you know. What hes saying. Now is the issue of trying to playing out in the American Election cycle and by the trade themselves as being tough on beijing maybe they are at least rhetorically but in reality those are very different stories and its bipartisan the commanding heights of industry and finance important china for decades and now there are regions to show is this chinas feel. Old. Welcome back to the kaiser report imax keyser time now to turn 10 a fantail way to more it is the host of breakdown an l w author hes also the author of long raids on sunday at his sub stack i follow this guy on twitter hes a deep thinker were going to interview him right now is pretty darn interesting that they now welcome a thing so much for having me everybody is talking about open ai g p t 3 is the most powerful Artificial Intelligence language model ever is this something we should celebrate or fear i think it goes both ways i mean i dont think you can have a i advantage without worrying a little bit about it the specifics of this one the model thats been released the thing that makes it less scary to me which may be relevant for other parts of our conversation is that it cant do narrative so basically this is sucked in 16475000000000 inputs half a trillion words and so it can predict with incredible accuracy affectively what the next word is supposed to be based on context so it makes it easy for it to do things like imitate blog posts in peoples style the scary thing that of course is that you can imagine you know essays op eds or whatever coming out from max or from the fan you all that sound just like us if people are reading us a lot because its good at doing that sort of imitation the less scary thing is it doesnt really have any comprehension of what its putting out there its just really a predictor so its not kind of intelligent in any meaningful way its just very impressive but its still i think you know every advance that ai has implications for a lot of different roles in jobs and Everything Else and ultimately you know its about trajectory and last year g p t 2 came out and people were blown away that it existed and its taking an even less them out of time for it to be sort of this new version thats 2 orders of magnitude stronger so you know the question that we have with ai i think are bigger than. Any one specific implementation or model but it reminds us that this is going to be a serious part of our future right if they cant stand narrative what does that mean and means that it has a hard time keeping a coherent thought it doesnt have a mental model of the world all it has is the ability to read other stuff and so lets say that you and i wanted to kind of construct a story or you know your were going to talk about a bunch of Different Things today but you know if we talk about the wall street right wall street bath and robin hood and these sort of things im coming into that with a set of mental models that help put that in context for the world it doesnt have anything like that and so what this amounts to is that after a couple paragraphs it can get kind of disjointed and weird and go on strange non sequiturs and tangents and so it can craft a story basically it can do bullet points it can do essays it can do a lot of very impressive things but it cant keep kind of a coherent picture of the world that its all building up to play live in an age where pay paul. I dont really believe in any narrative right because everythings become fake this cell in the president says thats fake news and Mainstream Media is fake this a 1000 telling people that dont believe any narrative you have an ai bot that doing it is rape our taj as it were and it famous from what you find from other fake mez its going to be difficult to convince anybody that anything is worth listening to and i think that might be one of the risks of this particular piece of technology now moving on the free money p. P. P. Bailouts the massive money printing operations enhanced Unemployment Benefits universal basic and come put the scale of the money printing into some sort of macroeconomic context and where does this go and mean it goes bigger i mean youre seeing already the all of the kind of like buzzy little headlines menuhin back on the hill talking about more in stimulus and wanting to get both the fiscal and the monetary engine going in concert you have the e. U. Who just approved a 2000000000. 00 carbon recovery package and so i think that the biggest thing for me is the whole the side the numbers if the normalization of the methods right when this happened there wasnt a question there wasnt a debate about whether we were going to engage in these programs there wasnt a National Kind of conversation about whether the fed was kind of moving outside of its mandate with the special purpose vehicles it was just assumed that when things got bad the fed was going to be there and the real impact to me is again less the actual dollars and cents in fact is people who are arguing right now that you know as as a kind of percentage of g. D. P. The feds Balance Sheet is still low relative to the e. C. B. In japan and things like that i think what matters much more is again the narrative implications and the normalization of the fed beds backstopping everything right when you say they are normalizing the fed going outside of a say normal channels and using special purpose vehicles to bypass let thats called what it is. Passed the law right there would be a ving lawlessly for the benefit of whom the other thing that i need the money is trickling down to a fast majority of folks in the country same dollars get stuck in the pockets of the kleptocrats and i can tell you theres so isnt this effectively a boeing saying as a coach it would be a coup if it wasnt already the power structure in place traded i mean and maybe revealing the coup that happened a long time ago more baldly but i think that the the reality is that theres only one instrument that they have to kind of exert their will on the markets and thats an instrument that by definition is going to get to the sort of actors right that can tell you theres insiders faster and i think in a lot of ways thats why youre seeing people kind of throw out the assumption that that traditional policy is going to do anything for them and are just trying to kind of assert themselves like barbarians at the gate in the market so i think that the only qualms i have with your definition of this is a coup is that its been going on for a long time and and if anything this just kind of made it more clear the antecedents got back to the reagan years and the federal reserves greenspan put all the deregulation and basically wiping away the security back to 33 and 34 that cleaned up the mass of the speculative bubble of the 1920 so were back kind of into almost a replay of all the excesses that occurred at that time the robin hood trading generation is out there on that app trading up a frenzy and theyre buying stock in bankrupt companies with their with their p. P. P. Money and their and their universal basic and come money theyre buying hertz and j. C. Penney and Whiting Petroleum and mall operators c. B. L. These are companies that are going bankrupt and theyre attracting a lot of training on behalf of a robin hood app traders tell me whats going on here. Theres a lot i think that theres a couple different ways to look at it one is the question of does this actually have a role in markets and if you asked you know wall street professionals a few months ago whether this was a real force they would kind of dismiss it right there blowing it off i think that the tone has shifted a little bit and its something that people are taking more seriously part of the reason for that is that this whole movement has infiltrated Financial Media which has historically been extraordinarily exclusionary almost by definition right Financial Media is designed to make people feel less knowledgeable and less understanding because its made to feel that people who do understand all the acronyms and and get it you know they feel like an ingroup thats really what Financial Media does thats what it profits from so now you have forces like dave portnoy the founder of our School Sports who are just absolutely warping the media narrative to fit what hes telling me that this an ignore of will force and thats creating more momentum around it which i think goes back to the strategy here and send me all of this represents and some ways a base level discontent with with the options available to participate in the market and so rather than just kind of passively accepting that you just have to put your money into your 401 k. And go on your merry way people are saying no this is ridiculous im going to go see what we can do and thats why you have these sort of semi coordinated efforts like wall street bets which are not just kind of meaning although memes are an important part theyre basically weaponize ing names and playing a game of chicken with the rest of the markets and i think that thats what the bankruptcy bat was all about is it was a bet that they were going to make this thing looks so ridiculous that some percentage of people just had to foam 0 in and they were willing to play that that game of chicken in a way that potentially other Institutional Investors just couldnt hang with now to say with a part no i am the day traders and the robin hood traders they have buying hertz aka even though its bankrupt as monitor they had a senate. And i think ultimately thats unhealthy for this generation the millennial think and say they are getting hooked on senator i would go farther i would say its the monetization of nihilism and it is a i mean you know not everyone right i dont want to go too far but i do believe that. One of the one of the responses to this that rings least true to me and that i think is the one of the biggest examples we have of kind of pearl clutching right now is oh when this bubble inevitably blow up like it always will these guys are going to be disillusioned and my theory is that they disillusionment is table stakes for this disillusionment is the reason they got in disillusionment is going to college in college that 12 years later without feeling like you got farther along disillusionment is not being able to buy a house because houses just keep going up disillusionment is as all of these things right its the places that inflation is taking hold that arent that silly little you know Consumer Price index and so if people are being told and structurally forced into participating in markets as their only means of getting ahead in any meaningful way why wouldnt you do it in a way thats more thats more kind of barbarian and serves your own interests and doesnt play by the rules when the rules have left you behind why would you accept them as the way to play the game if you think you can figure something out that out now that has nothing to do with efficacy especially in the long term but i understand the nihilism and the frustration but to your point i do think that its unhealthy we dont want people to engage in our markets in is that even a bad faith because the whole thing is bad faith in some ways but in a way that persons that nothing is there for them other than to grab the loot that they can before the whole city burns to the ground enough out of what we have right now good point their value right off in about dollar milkshake and dollar wrecking ball tell us about hey this is one of the biggest questions i think that really there is so much disagreement about in the world is on the one hand you have this theory that the dollar. Is the only game in town ultimately and that the dollar and the u. S. More broadly effectively suck all the liquidity of the world into their system because its the only place for excess savings in other parts of the world particularly asia and europe to go thats kind of the dollar milkshake theory call has kind of redefined it as the dollar wrecking ball and talked about its delivery as impact on other parts of the market the other side of it is has to do with the counterpoint i guess is that the dollar has been kind of weaker than some people thought or is reset a little bit and so really no one has any friggin idea right now about the dollar and part of the opacity and part of the confusion in the system has to do with the fact that when we talk about the dollar were not just talking about the dollar itself but dollar equivalents right were talking about the the entire euro dollar system the entire world of u. S. Dollar denominated debt that is not kind of in the in the formal u. S. Bank system so its i think that for me and the reason that i cover it so often is that the place of the dollar is the worlds reserve currency has and the way that that manifest has an outside impact on other assets other economies other real economy issues and its one area where there really is not a single band of conventional wisdom theres very strong kind of competing theories for what happens so when paul krugman at the New York Times says that what backed the dollar are a man with a gun with that example of monetizing nihilism yes or no i would call that foundational nihilism of a system but i would maybe argue that its the other way around i think in some ways the dollar has been the most effective weapon in the u. S. Arsenal for a very long time now and part of the reason that theres big stakes is that if that changes who knows what happens samael thanks so much for being on the kaiser report as you have me and thats going to do it for this edition of the cars are a part of a makeover is a fair but i want to thank our guests a panel with a more if you like a touch treatise on kaiser report that i found bio. Syria has been engulfed in civil war through almost 10 years its cost hundreds of thousands of lives and displaced millions more no one foresaw the peaceful protests of 20 of these collating into a complex conflict between various geopolitical interests rebel groups just. How they are in the book on this. But if you tell us if you say you hate the. Message the look cool. You know deep comedic. As the mother then the shame but i leave them with the hate. It. A dark industry comes to life in los angeles every night. Dozens of women sells their bodies on the street many of them underage. Los Angeles Police reveal a taste of their daily challenge no if youre going to exploit our child here in los angeles they were going to come out as the officers going undercover as 6 workers and customers to fight the early 6 trades. The u. S. China few deskilled says american agents break into the former chinese consulate in houston hours after it was vacated on washingtons orders that after the u. S. Secretary of state called on other nations to join forces against china prompting fears a new cold war has begun. New yorks protesters burned turkish flags in the greek city of tents along the keep outraged by turkeys decision to turn higher so fear back into a mosque. This is a totally barbaric nonslip