Episode 2799 CWSA 04/04/25
I sort out the tariff stuff for you and predict the future. Lots more. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ If you would like to enjoy this same content plus bonus content from Scott Adams, including micro-lessons on lots of useful topics to build your talent stack, please see scottadams.locals.com for full access to that secret treasure
Check the stock market, but we all expected that. So, no big news. We knew it was not going to be a good week for the stock market. Let's get my comments going here. And then we've got the show that you deserve. If you've been good, and I'll bet you have been. I'll bet
View segment →you've been good. Good morning everybody and welcome to the highlight of human civilization. It's called Coffee with Scott Adams and you've never had a better day. But if you'd like to take your experience up to levels that nobody can even understand with their tiny shiny human brains, all you need…
View segment →of the day. The thing that makes everything better. It's called, that's right, the simultaneous sip. And it happens now. So good. Well, I guess it's going to be up to me to explain tariffs and everything else because it's all terribly complicated. But first, let's see if there's any science that d…
View segment →Really? If I mated with that, maybe I'd have a child who is super skilled. All right, bring it on." So I don't think AI will ever produce any art that anybody cares about. That's what I think. But it might be the end of drawing. I was doing some drawing yesterday for my job and I realized that a ch…
View segment →ut will be gone. So but I also wonder did we think that the WEF, World Economic Forum, was the shadow government until DOGE discovered that USAID was a shadow government at least for the United States and for a lot of countries it affected. So maybe we just like having the idea there's a shadow gove…
View segment →ause I'll tell you my current view on Democrats besides the fact that they're performing as opposed to operating on core beliefs. I think Democrats are motivated by jealousy and hate and that's why they perform. Imagine if your core belief was non-existent but your real motivation is a revengey, jea…
View segment →country can do well, we can create more for everybody. So if you have a growth mindset you don't really need to pretend when you're talking about what you want. I want to lower taxes. I want to get rid of regulations. It's just a growth mindset. And the Democrats are just literally just putting on p…
View segment →ethical or not was, who do you think it was? Of all the people in the world, who would be in charge of determining that Fauci's gain of function research in China was ethical? Well, it turns out it was his wife. That's the first time I knew this. So his wife, who I guess just got fired by Trump, she…
View segment →e say, "Well, you had a choice of just doing it perfectly in the first place. Why didn't you just measure twice or thrice before you cut?" I mean there's a little thing that even says what you should do. Measure twice, cut once. Have you never heard that? I mean if you've heard it then I guess you w…
View segment →rt of it is that Israel used the term total victory and they said things like it will never be the same. Now when you hear total victory and you hear it will never be the same there what did you think was going to happen? Because if all they did was fight for a while and then say, "All right, let's…
View segment →So that looks like what's going to happen. And that ladies and gentlemen are my comments for today. I'm going to make a few comments privately to the locals subscribers but for the rest of you thanks for joining on YouTube and X and Rumble. And I'll see you again tomorrow. Same time, same place. An…
View segment →Check the stock market, but we all expected that. So, no big news. We knew it was not going to be a good week for the stock market.
Let's get my comments going here. And then we've got the show that you deserve. If you've been good, and I'll bet you have been. I'll bet you've been good.
Good morning everybody and welcome to the highlight of human civilization. It's called Coffee with Scott Adams and you've never had a better day. But if you'd like to take your experience up to levels that nobody can even understand with their tiny shiny human brains, all you need is a copper mug or a glass or tankard, chalice, carafe, jug or flask, a vessel of any kind. Fill it with your favorite liquid. I like coffee. And join me now for the unparalleled pleasure of the dopamine hit of the day. The thing that makes everything better. It's called, that's right, the simultaneous sip. And it happens now.
So good.
Well, I guess it's going to be up to me to explain tariffs and everything else because it's all terribly complicated. But first, let's see if there's any science that didn't need to be done.
Oh, here we go. According to PediPixel, which sounds like a weird name, Matt Grokoot. How could that be a real name? Grooot. Poor guy. Matt Grokoot. Anyway, there's a study and the study finds that if you smile in your profile picture, more people will want to do business with you and you'll make more money.
Now, that's quite a surprise, isn't it? Do you know what they could have done instead of this study? They could have just asked me, "Scott, is it good if people smile in their profile picture?" Yes. Yes, it is. Well, we were thinking of doing a big expensive study. Don't bother. People like it when you smile in their profile picture, but will they be more willing to do work with you and, you know, maybe buy things from you? Yes. Yes. Smiling can do all of that for you. So next time just talk to Scott. I can save you a lot of time.
Well, the Trump administration is freezing $510 million from Brown University according to the Daily Caller. Regan Reese is writing and it's because Brown University has been accused of not doing enough about anti-Semitism and their DEI program is a little problematic as well. But more than that, I think they need to change the name of their university to something more inclusive. I mean, the name of the college is Brown University. I mean, seriously, you're going to have to change the name. I think something like Rainbow University or All the Colors University or Be They Black, Be They White, Be They Any Other Color University, but you just can't call it Brown University. If DEI is your problem, change that name. Okay, it's certainly named after a person named Brown, but that doesn't matter to the joke.
Well, there's yet another day, this is the millionth day in a row, in which somebody has breathlessly posted on X that some new AI app can create people who are doing what you want them to do. So if you dance, it makes it look like a celebrity that you selected is dancing. And you can make them do all kinds of things. You can make them Marilyn Monroe. And does it matter which app it is? No. Because nobody's ever going to do anything useful with that.
How many times have you seen an AI app that promises to make, "Oh my god, with this kind of tool I could make my own full-length movie." Has anybody made a full-length AI movie? Nope. Is anybody close to making a full-length AI movie? Nope. Because I've tried a little bit, you know, image generation stuff just to see what's going on. I think I used Groq and maybe ChatGPTs. And so I thought to myself, okay, I'm already a visual artist kind of. And so I'll tell the AI to make, and then if it's not exactly what I want, how great will this be? Because I can just tell it to change it. I can say, "Change the color of that shirt and put it in a tropical setting," and pretty soon with very little effort I'm gonna have like a piece of art. It took me about 10 minutes of messing around to say to myself, I have no interest in doing this whatsoever. And it never got close to what I wanted because it turns out that the thing in my mind just couldn't be reproduced by AI. There was just always something that wasn't close.
And I think all of these image generation things where you think, ah, we must be five minutes away from Hollywood being able to make a full-length movie with this technology. Nope. Nope. You're not even close. You would not get anywhere close.
I'm going to double down on my prediction or triple down or quadruple down because I keep saying it that art, pretty much all art forms, are only attractive to us as consumers if we know that it was made by a human. And it's not because we're anti-AI or something. It's because it's related to our mating instinct. So when you see an artist who does something that you can't do, you say to yourself, you don't maybe you don't say it consciously, but your instinct is to want to mate with the artist because the artist has some kind of genetic thing you don't have. If you see somebody who can play the piano like Beethoven and even write the music like Beethoven, you are automatically triggered to say, "Really? If I mated with that, maybe I'd have a child who is super skilled. All right, bring it on."
So I don't think AI will ever produce any art that anybody cares about. That's what I think. But it might be the end of drawing. I was doing some drawing yesterday for my job and I realized that a child born today will never even learn to draw because it wouldn't have any utility. They'll just learn to use AI to make images. Why would you learn to draw if you were a child born today? No real reason. I'm almost wondering if children born today will learn to write because you could just talk to the computer and it'll write it perfectly for you. At what point is it just useless to learn how to do it yourself? I don't know. We're getting close.
All right. Apparently, according to Zero Hedge, Republicans, the Trump administration, are looking at raising a new, well, creating a new tax bracket for those earning over a million dollars a year. Does that sound like something that Trump would be okay with? It doesn't to me. I suppose it would be popular or help him sell the tax package if he does it, but not a big fan. Not a big fan of that.
If you had any idea what the tax burden is for people who make over a million dollars a year and let's say they don't have any fancy ways to hide it, they're not in real estate or they don't own a gigantic company with lots of ways to hide your taxable income. If you're just making a lot of money because you're a surgeon or something, the tax burden is insane. It's insane. And then when you die, the government takes 40% of what's left. There's really no hope.
Well, let me put it another way. If you were so good at your job that you made a million dollars a year every year that you worked and then you retired, you would not be leaving your children much of anything at all because what it would cost you to live would be about the same. Your taxes would take most of it and then your estate tax would take 40% of what's left and then if you had three kids and you divided by three, not much left. So really the government in its current form has made it kind of impossible to build wealth in a realistic way, you know, unless you're just killing it and then you can do it. But you'd have to get so lucky. But people who are making a million dollars a year, just like clearing a million dollars a year, they're not creating a dynasty. That's just living a pretty good life while you're alive. Pretty good life.
Well, meanwhile, Klaus Schwab is stepping down for the World Economic Forum. We knew this was coming. But is it my imagination or did the people who were quite worried that the World Economic Forum was going to be like a shadow government and really running the whole world and all that, did we just stop thinking and talking about it? Because I never bought into that, you know, I was just sort of observing it from the outside. But to me, it just looked like what Elon Musk said once, a rich people's club. And they had some preferences, you know, they wanted some climate change and maybe they wanted you to eat bugs and not own as many things and, you know, rent them instead. But did any of it make any difference? I don't know. It doesn't seem like it really did.
And now that Klaus is gone, you wonder if all the Klaus clout will be gone. So but I also wonder did we think that the WEF, World Economic Forum, was the shadow government until DOGE discovered that USAID was a shadow government at least for the United States and for a lot of countries it affected. So maybe we just like having the idea there's a shadow government, but as soon as you see that what USAID was doing, that looks like the real one and then the World Economic Forum again just looks like a rich person's club. So Klaus is stepping down.
Trump called the situation in France where Marine Le Pen who was the front runner for the presidency got taken out by lawfare or at least that's what it looks like from this part of the world and Trump called it a witch hunt and said it was the same playbook that was used against Trump to take him out. Now do you buy that? Do you buy that it wasn't a legitimate prosecution? It maybe wouldn't have happened to anybody else and that it was completely political and it was for the purpose of taking her out of the election. I do. I do now, could be wrong maybe, but we live in a world where unfortunately that would be the most obvious and routine thing that would happen because we're seeing it in other places.
You know, it seems to me that remember when the first time you learned that George Soros had figured out that the best way to control the country is to control the prosecutors and maybe some judges. Because if you get the attorney generals and the prosecutors on your side, you can kind of control the legal system. And if you control the legal system, you are the government because you can take out a candidate. If you can take out a candidate like Trump or you can take out Marine Le Pen, you're kind of the government. And remember how clever that seemed? We thought, man, this Soros guy is so clever. He figured out the least expensive way to control a country. Then he was controlling the United States, it felt like. And then we learned that USAID has been doing exactly that to other countries massively and for decades.
So apparently one of the first things we do when we want to control another country is we look to control their courts. We try to get a judge and prosecutors that we can control or bribe or somehow have some influence over. So it does seem that all governments that you would call part of the democratic world, they all seem fake because I believe that if your court system has been corrupted and that certainly is the case in the United States, seems to be the case in France, probably the case in every country that USAID was working in. I'm not sure any of the democracies are real. I think that they might all be pretend and that the real government is whoever put in the corrupt judges.
You know, remember Joe Biden and the prosecutor, he said, "Well, we won't release your billion dollars to Ukraine unless you get rid of that prosecutor." That was just this. It looks like it was just another case where we couldn't control Ukraine unless we could control their judges and prosecutors. So it looks like that's what he was doing. So once you learn that the governments all look fake, they all look fake.
If you look at let's say an election in the United States, do you think it will be determined by the candidates and the voters or will it be determined by whatever corrupt judges decide is going to be legal today? I think the judges can change the rules. They'll decide what's in, do you need voter ID? Are you going to reapportion the district so that you get more representatives? I think the courts kind of control democracy and so to me everything looks fake as long as the courts and the judges don't look credible and they don't look credible at this point. So there's that.
So Laura Loomer made some news by apparently she had identified some what Glenn Greenwald calls three pro-war members of the National Security Council and she talked to Trump and Trump fired them immediately. Now how do you interpret that if you're an anti-Trumper? You say to yourself, "What? This Laura Loomer conspiracy theory lady is so powerful. She's causing policy to happen in the White House. Is that what's happening?"
Let me give you my frame on this. I've said this a number of times about Trump. One of his superpowers, one of his strengths is that he's really good at listening to everybody. He'll listen to Bill Maher. He listened to me when I visited. He'll listen to Rock, he'll listen to Laura Loomer, but you will also listen to Scott Bessent and all the top economists and you'll listen to other world leaders. And he's really good at scanning the room and listening.
Now, the other thing I teach you is that the person with the best ideas is always in charge. So Laura Loomer must have done some research or had some information that Trump was not aware of and she had credibility from other interactions. So he was willing to give her a listen. She described these people and why she thinks that they were dangerous to keep on because they're kind of pro-war, you know, maybe not as pro-Trump as they could be. And he decided because he's the decider. That's a good point. I didn't know about that. They're gone. I don't have any problem with that at all. To me that all looks positive. The positive part is that Trump is always scanning his base to find out what they think and listening to suggestions.
I can't tell you how many times I've heard that somebody made a suggestion to the Trump White House and then when it got to Trump, he said, "Huh, pretty good idea. Let's do that." It's very common and I don't think any other president has had the confidence or just the vision to see what everybody wants and to be able to decide, oh, I like that one. I don't like this one. I like this one. I don't like that one. So I love the fact that Loomer could come in with some information of value because otherwise Trump wouldn't have acted if it had no value and he acted on it. So I don't think that story is about Loomer. But she's doing a hell of a job of making herself relevant in the entire political process. So hats off to that. But this is a Trump story and Trump doing the thing I like best about him, listening, taking people seriously and then acting without any hesitation.
I saw a video of Chuck Schumer in 1996 and he's basically sounding exactly like Elon Musk talking about immigration and Schumer in 1996 he's arguing in the Congress and he says the number one reason that illegals come to the US is so they can defraud programs like Social Security. Does that sound familiar? It's 1996 and it's Chuck Schumer. Now today he would say exactly the opposite. Oh, stop accusing those illegals. There's nothing going on. Completely opposite.
Now that's not the only person who's on video doing things that look sort of opposite based on today. According to the Wall Street Apes account, in 1996 Pelosi was encouraging Congress to back reciprocal tariffs. Do you think she's doing it today? Probably not. In 2008 Bernie Sanders wanted tariffs because he says jobs are going overseas. Actually Bernie might be consistent. I think he might, I'll have to check on that, but I think Bernie might be consistent because I think he agreed with Trump on some tariff stuff. And in 2018 Barack Obama called for reciprocal tariffs. Do you think he's doing it today?
So here's my take on Republicans versus Democrats. My observation having spent a lot of time with both is that Republicans have core beliefs. Now I know that sounds funny because you think everybody has core beliefs but I don't think so. I think Republicans have core beliefs and they don't really change. And Democrats have performances. So one has core beliefs and you could predict if you found a video of a Republican talking 20 years ago, would it look that different from a Republican talking today? I feel like it would look essentially the same. Whereas the Democrats, you can always go back and find them having the opposite opinion. The indication to me is that one group is performing and one group is acting on their actual core beliefs. And once you see it, you can't unsee it.
But let me give you another example here. According to Rasmussen polling, Stephen A. Smith, you know, would you call him an entertainer or ESPN commentator? Let's call him Stephen A. Smith, that if you throw him in the mix for potential candidates to be president of the Democrats, he actually scores pretty well. So let's see, 33% of likely US voters view him favorably. And in a hypothetical matchup 31% would vote for Newsom but 28% for Stephen A. Smith. And he would do about the same against AOC. So he's not the leading person, but he's also not running at all. I mean I think he's been pretty clear that even being considered a presidential candidate is less about him. I like the way he says this by the way. It's less about him and more about the complete lack of good candidates. He's totally right about that.
But here's the thing. Stephen A. Smith is a performer. Now he's a commentator but what makes him extra good at his job is that he performs. Like he goes big when he comments and that makes him hard to look away. I find him totally engaging and very skilled at doing what he does, which is get your attention, hold your attention. My experience is if I come across a clip of Stephen A. Smith, it's hard to stop watching it because he's just so high energy and he makes sense most of the time. But he's a performer, so that makes sense in the Democrat world. Find a performer because it's all performance.
Well, there's a study by, well, the Post is writing about it. It was published in the Personality and Social Psychology Bulletin that says that liberals show less empathy to political opponents than conservatives do. So liberals would care less if conservatives had something bad happen to them, whereas conservatives might deeply disagree with the liberals but wouldn't find pleasure in seeing something bad happen to them. Is that surprising? Nope.
Because I'll tell you my current view on Democrats besides the fact that they're performing as opposed to operating on core beliefs. I think Democrats are motivated by jealousy and hate and that's why they perform. Imagine if your core belief was non-existent but your real motivation is a revengey, jealousy, hatred of people who are doing better than you, you would have to perform because you couldn't say the truth. You couldn't say, you know, honestly, I'm just full of hate. So I think I want Trump to lose. Not because he's doing a bad job. I'm just full of hate. And DOGE, even though it sounds like a good idea on paper, Musk is so rich and having so many babies. And I'm not having any babies and I'm not rich. So I just like to see him fail. You couldn't really do that. You can think it but you can't say it out loud. So you're going to have to put on a performance instead. You're going to have to pretend that you have normal views and that you're a normal person.
But Republicans seem motivated by two things. One is the ick factor. Now you've heard this before that conservatives seem to be more likely to be icked out by anything that's non-standard or just icky. And I don't want to give you examples of what that is because that would cause problems. But there are just some things that make conservatives go, "Ugh, get that out of here. I don't want to be part of that at all." But that's not the only factor. I think Republicans have a growth mindset which is you can do well, the country can do well, we can create more for everybody. So if you have a growth mindset you don't really need to pretend when you're talking about what you want. I want to lower taxes. I want to get rid of regulations. It's just a growth mindset. And the Democrats are just literally just putting on performances trying to cover up the fact that their real motivation is just some kind of horrible hatred. That's what it looks like to me.
Well, here's something I didn't know. According to the Amuse account on X, did you know that the person who at one point had been tasked with determining whether or not Dr. Fauci's gain of function research was ethical or not was, who do you think it was? Of all the people in the world, who would be in charge of determining that Fauci's gain of function research in China was ethical? Well, it turns out it was his wife. That's the first time I knew this. So his wife, who I guess just got fired by Trump, she was the head of the NIH office of bioethics. So he was actually being evaluated by his wife for whether or not he was acting ethical or not.
What just happened? Did my light just go out? Hold on. Well, that's weird. That's the second independent light in my studio that just went out on its own while the other lights didn't go out. I'm pretty sure I'm affecting my lights today. I do that sometimes.
Well, according to ABC News, Robert F. Kennedy has cut more jobs at Health and Human Services than he wanted to. So some people will be hired back and those would have been called mistakes. Now how would you report this if you were ABC News? Would you report it as that dumbass? He should have used a scalpel instead of a hammer. And now he's made this terrible mistake and now he's gonna have to correct it. Let's hope he's smarter next time. Well, I would call that the low experience take.
Here's what an experienced person would say about that situation where big cuts were needed, big cuts were made, but then it went a little too far. So they have to back up and correct a few things. I would say that the view that he should have done it perfectly the first time is what very inexperienced people say about things. I'm no expert but I think you should do everything perfectly every time. What? That's what the Democrats with not much experience say, you know, who've never been in business, never done anything important. That's not a thing. You can't do something of that size and scale and do it perfectly on the first try. Nobody could do that. So don't even imagine that if he tried harder or used his scalpel that he could have gotten it exactly right the first try and gotten it done on time. If you had infinite time you still couldn't do it because if you have infinite time then forces working against you will have time to organize and thwart you and get in the way. So the best way to do this stuff is take your best cut at it, make some mistakes and then correct them as you need to. That's a perfect job.
Inexperienced people say, "Well, you had a choice of just doing it perfectly in the first place. Why didn't you just measure twice or thrice before you cut?" I mean there's a little thing that even says what you should do. Measure twice, cut once. Have you never heard that? I mean if you've heard it then I guess you would never make any mistakes. But it's a good thing that I'm cleverly telling you now with all my lack of experience how things work in the real world. Yeah. Do it without mistakes. I'm going to add that to my other thing that only inexperienced people say, which is you should have done it sooner. Do you know what else you should have done sooner? Everything. Everything that was worthwhile you should have done it sooner. What about DOGE? Should have done it sooner. What about tariffs? Sooner. What about tax cuts? Sooner. Everything should have been done sooner and perfectly. It should have been done sooner and perfectly. That's what all the dumb people will tell you.
Anyway, so I was looking at, PJ Media, Victoria Taft is writing about this, that Congresswoman Pramila Jayapal and some Harvard professor are behind the training of people to resist DOGE and Tesla. So they're actually doing resistance training to get more people onto the streets. Resistance training. Now here's the fun part. I happened to be watching Jayapal getting interviewed live the other day and she said that this resistance training that they were giving was part of capacity building.
Now do you know where I'm going with this? If those of you have listened to Mike Benz, he talks about the CIA and often working with USAID in the past where they would do capacity building as part of the plot to overthrow other countries. Now capacity building would be things like making sure that you had co-opted the media or maybe introduced a new form of media that was going to say the right things, or you had trained people to resist on the streets, which is exactly what Jayapal is working on. And I said to myself, what are the odds that she would use that phrase? Have you ever heard any member of Congress talk about capacity building? Have you ever heard anybody in any context use the phrase capacity building? The only place I've ever heard it is from Mike Benz and he didn't make it up. He's training us to understand that that's a CIA phrase.
So do you think that Jayapal accidentally admitted that she's CIA influenced? I do. I don't have proof but that was a pretty big signal that she's had some kind of training that's either adjacent to or because of the CIA. And that would explain so much that I didn't understand about her. So much. So I can't say for sure, but if you see anybody who's training people to resist on the streets and they refer to their own work as capacity building, it probably means exactly what you think it means. And if I had never heard Mike Benz talk about it at length, I wouldn't have caught it. But that little, by the way this is a hypnotist thing. Hypnotists will tell you that people tell you exactly what their hidden thoughts are. They just don't know they're doing it. So I'm always looking for the hidden thoughts based on their choice of words. This one just jumped right out. So that was interesting.
All right, let me give you an update on tariffs. Now as if you're brand new to my live stream you don't know that I'm completely disgusting because I often mention that I have a degree in economics and an MBA from a top school. So a person like me should certainly understand tariffs. I mean with all of my sophisticated education background of course I understand everything about tariffs and I'm going to explain it to you now in the simplest possible way and then you'll be as smart as I am about tariffs. Wouldn't that be great? Don't you want to be as smart as I am? Well no. The real story is economics is not even real, but we'll get to that.
So when you see people complaining that the stocks went down and they lost money, that's not real. Nobody lost any money unless it stays down and never goes back up, which has never happened to the stock market in the history of the stock market. There's never been a time when it went down and just kept going down. Now if we ever do see that that will be the end of the United States. But in all likelihood there's a temporary uncertainty and things are likely to adjust.
So I was watching somebody, it doesn't matter who, just saying, you know, and I lost all this money in the stock market. No you didn't. Not only did you not lose it but your percentage of ownership of the country stayed about the same. Meaning that if you owned this tiny bit of stock you owned a tiny bit of the country because the country is mostly corporate wealth. And if everything went down you probably own just about the same percentage of the country as you owned before. So it's not as bad as it could be. I haven't sold any stocks. I'm just going to ride it out. I'm not terribly worried. I don't have an estimate of when it will bounce back. Could be sudden. Could be any time. I don't know. Could be months, could be longer.
But what do you think about the people in the news business? I think the people in the news business are not waiting for manufacturing jobs to come back so they can get one but they definitely have some money in the stock market. If you're in the news business you're well paid and you probably got a 401k. So the people in the news are going to obsess about the stock market because that's what affects them. They're not going to say, "Well thank goodness we have a plan in place to bring back those good manufacturing jobs so I can get one of those and stop being on MSNBC." No, they're only going to be worried about the stock because that's what affects them and it's also what they understand or they think they do.
So first thing you need to know is that Jim Cramer thinks these tariffs are a terrible idea. Now if you spend any time on the internet you know that Jim Cramer is famous for being a contra indicator of what's gonna happen. So if he thinks it's a bad idea, might be the best idea ever. We'll see.
Apparently General Motors says they're going to dramatically increase car production in the US. And that's directly because of the tariffs because it'll make foreign cars more expensive. So GM is thinking, "Oh good. We're going to sell more." Likewise Ford is rolling out what they call employee pricing. So they're going to allow anybody to buy a Ford for what would have been the same price that their employees could get them. I don't know how good a deal that is or not but it doesn't count with some of their best cars. It doesn't count like the Raptor or the Mustang or the Bronco or the Expedition or the Navigator or the Super Duty trucks. So it's not the best offer in the world but it'd be great if you're looking for an ordinary Ford car and you just want a good price. But I think the low-hanging fruit here is US companies that will benefit from the tariff and already have facilities. So all they have to do is increase production at the existing facilities. So when you see that kicking in that's probably a good sign.
Here's something just so predictable. Republican Chuck Grassley is working with a far-left Democrat Maria Cantwell. That sounds like the worst name for somebody who's trying to get something done. Can you do this? Well, can't. Well anyway the two of them are working together in a bipartisan way to try to wrestle control from Trump about tariff decisions and make sure it's in the Congress. So they want to make some new legislation that basically codifies the fact that Congress is the one who can raise taxes and decide on tariffs. So this would be game over. Now I don't know what the odds are that this gets passed. I think low, probably pretty low odds that it gets passed, but this would be terrible. It would be basically neutering Trump's ability to negotiate, to do anything useful with tariffs. But there we are, Chuck Grassley trying to take control of that for the Congress, which as you know is worthless according to The Economist magazine.
All right, here we go. Now The Economist magazine would be written by people who really understand economics. So whatever their take on this would be the smart take, right? So they put out a magazine. And did I mention that they're called The Economist and they think that magazines are still a good business model? That's sort of disqualifying from being an economist. What's your business model? Well we've got a magazine. Okay. But what they say is that this is right on the cover of their new magazine that Donald Trump has committed the most profound, harmful and unnecessary economic error in the modern era. Almost everything he said on history, economics, and the technicalities of trade was utterly deluded.
But if you want to hear the counter to that, All-In pod and entrepreneur Chamath Palihapitiya commented on that and he called them a mouthpiece of globalist rhetoric that is literally always wrong. So Chamath was kind of commenting that the more The Economist hates it the more likely it's a good idea. I don't think he's wrong.
You may have heard that Trump's getting some pushback because Russia and North Korea, Cuba, and Belarus are not on the tariff list. And you might say to yourself, "Wait a minute, is it because he's Putin's secret lover that he doesn't want to put them on there?" But anyway the White House clarified that those countries and Russia in particular are already so restricted. So they've got high tariffs already and all kinds of sanctions and so there's not any meaningful trade with those countries. I think there are some things like potash or something that we trade with Russia but nothing meaningful that would be worthy of derailing any peace talks. So it makes sense they left them off.
China has responded to the tariffs on them with a reciprocal tariff. So they matched it with a 34% tariff on imports of all US products beginning April 10th. So that matches the US. Is that the beginning of negotiations? Maybe. We'll see.
New York Post is saying that your iPhone could get a lot more expensive because of the tariffs if they stayed in place, especially the China stuff because it would make your iPhone be over $2,000 they think. Would it? I don't know. And if it were maybe Apple would work hard to bring it to the United States. I don't know if they could make it cheap enough in the United States but maybe that'll happen.
Then the New York Post is talking about the cost of buying your Air Jordans shoes that are made in Vietnam which is also getting a big tariff and that your Air Jordans that used to cost $180 might cost $18 more. A lot of things that are optional purchases. I'm not terribly worried about an optional purchase expensive sneaker. Seems like you could live without one.
The other thing Trump said which was interesting, you remember I told you that China is unlikely to agree to a TikTok sale because I think they'd want to see Trump fail and it would be worth a few billion dollars to do it. Trump hinted that without actually committing to it, he just said it was an example, but he was clearly hinting that China might want to negotiate a better tariff situation in return for saying yes to a sale of TikTok to a US buyer or a buyer, a team of buyers. So clearly Trump knows that China saying yes to any kind of a TikTok sale is going to be a hard sell and that if you didn't bring in a completely unrelated piece of business which is the tariffs you probably couldn't get it done. So I think he understands that China is probably a hard no. Even if they lose billions of dollars I think that they would let that go. I think they'd spend billions to embarrass Trump and make sure he didn't get their crown jewel social app. We'll see. But it's interesting that Trump did set that up as a bargaining chip kind of situation.
Well I saw one theory that Trump's real play with the tariffs is to lower interest rates. And the way that would go is that the tariffs would scare the stock market and then people who took their money out of the stock market wouldn't want it to be idle. So they would put it in bonds. And if a lot of people buy bonds that would lower the interest rate on bonds because supply and demand. And then if interest rates come down then the Fed might lower interest rates. And then suddenly when we go to get our debt refinanced we would be doing it at a much friendlier interest rate which could be tremendously useful to the country. I don't know that that's the plan. It's just something that might happen.
So the reason that no economist knows what's going to go on is there are way too many moving parts. So you've got your interest rates and you've got, well here's other stuff. The Wall Street Journal is talking about the impact on the value of the dollar, right? So you've got the interest rate issue that's hard to predict. And on top of that there's the value of the dollar that's hard to predict. And there's not even an agreement about whether a strong dollar is good for the country or a weak dollar is good for the country. So economists can't even decide do we like a strong dollar or a weak dollar. But it is likely that the dollar will weaken if the tariffs stay in place and it continues to rile the market. So that's another thing.
Then I saw according to Spectator Index on X the price of oil went down 4%. Also probably because of the tariffs but I'm not sure. So if oil goes down that should trickle into all the other costs. So you've got the uncertainty of whether a strong or weak dollar is good or bad. You've got the interest rate effect that's unpredictable. You've got the energy cost that should lower prices but would it be enough to compensate for the rise in prices? You've got the question of who's going to absorb various tariffs? Will it always be the importing company or in some cases will the exporter absorb some of it? Then you've got how long will it take to get manufacturing coming back to the United States? How many adjustments can the industry make quickly? We don't really know.
So the number of unknowns involved in this are just through the roof. But one thing's for sure, the people who know the least about economics are very certain that they know a lot about economics. I think the more you know about economics the less confidence you would have on which way things are going to go. Because if it turns out that it's just a good negotiation that's going to be great. You would just get better deals. If it turns out it's going to go some way that nobody could predict, well anything could happen. We'll see.
But here's what you need to know. Economics is more art than science. All right? You think economics feels like it's some kind of a hard science. It's not. It's more of an art. The second thing you need to know is that art is, so let's see if you can follow this. Economics is more art than science and art is, economics is largely, nobody really knows in a situation like this what's going to happen. We just really don't know. But we'll act like we do.
So here's something that I saw some of the non-economists talking about. I saw somebody saying that the reason they're mad at Musk is that he and Trump don't pay federal income taxes. What do you think of that? That Musk and Trump don't pay federal income taxes. Therefore they're sort of parasites on the system. Well here's what you need to know. First of all I think it's not true. I think Musk has actually paid more federal income taxes than any living human. It's just that it depends on the year. So he's had one or two years where he had enormous payments because of the financial situation and then some years where it was zero. Trump of course as we all know has found ways to avoid taxes wherever he can because he's in the building construction real estate business and the tax law is sort of designed to encourage that kind of a business.
So here's what I would say. The reason that anybody can avoid taxes, be it Musk in some cases and Trump in some cases, is that the government wants this situation. They would rather promote the growth and the success of a gigantic business than they need specific taxes from that business as it's young. Now think about all of the federal income taxes that are created by having a gigantic company with lots of employees. All the employees are paying federal taxes. The businesses themselves probably have enormous property tax burden on them which is a state tax but still it's part of the productive taxation of the citizens. They create things that have sales tax associated. Again it's not federal but it's adding to the system. And if you add together all the sales tax, property tax, employee taxes, and then the employment itself, and the fact that if people are employed the government doesn't have to take care of them, the benefit that anybody with a large business that's successful is adding to the country is so great that the government is okay with you not paying federal income tax every single year if you're investing money into your company and that's why you're not paying taxes. So the people who know the least just say, "Oh they're not paying federal income tax so that's unfair. The billionaires are taking our money." That's not really what's happening.
All right, so here's my big worry about the tariffs. Do we have enough of a runway that we'll know if they're working before midterms? Because if the economy is still roiling the way it is the Republicans are going to get wiped out in the midterms. And there's not really much time between now and the midterms for tariffs to do their magic. Not a lot of people are going to be reshoring their manufacturing. So I feel like Trump is risking it all. Now I think he had to because the current situation was untenable. So it's the right thing for the country that he's taken this risk. I think we don't know how it's going to turn out but I think it's the right kind of risk at exactly the right time to do it. But if it doesn't make the public think it's working by the midterms Republicans are going to get destroyed and then it's all gone. You're going to lose everything politically. You're going to lose everything. And then it could get worse because if this was the only thing that was going to allow us to balance the budget and have some kind of a strong economy going forward and the Democrats take it away, which they will because they're not going to just let it ride. This is a really big risk but again I would rather that he takes the real risk to really help the country than to do something that would be purely political which is paper over it and pretend it's not a problem that things aren't going right anyway. So worry about the midterms.
Matt Taibbi, journalist Matt Taibbi is suing a Democratic lawmaker for $10 million because she made the mistake of saying something on social media that she had said in the context of her job. If she said something in the context of her job apparently you can't sue her but she made the mistake of putting it on social media and I guess that opened the door for him to sue. And she made allegations that apparently are thoroughly debunked. I'm not even going to mention them because I don't want to put it in your head but go Taibbi. Yeah. I mean he was unfairly accused of something that didn't pan out whatsoever in the past. And this Democratic California representative Sydney Kamlager-Dove just decided to empty the barrel. Is that a thing? And just totally trash him in a public way including on social media. So yes she needs to be completely put out of business. I hope he succeeds.
I saw in a Mario and a recap of the news that the Houthis have shot down a number of drones now. And our drones cost $30 million a piece, the good ones, the Reaper drones. And they've shot down three of them. Two recently just this week. So we've lost 17 of them over time and each one cost $30 million. So they've managed to cost us $500 million worth of just drones they shot down in the last six months.
Now here's my question. What kind of technology do the Houthis have that they can so successfully shoot down our drones? I mean maybe they miss nine out of 10 times. I don't know. But they must have some pretty serious equipment over there that they can spot it and then get to it. So I don't know how long it's going to take for us to suppress the Houthis but looks like it could be a while.
All right, I'm going to claim the best predictor of what's happening in Gaza. Now those of you who've been watching me for a while you have to either back me or disagree with me on this. I'll tell you the current news and then you tell me, was I the best predictor of what would happen with Israel and Gaza.
Now if you're new to me I need to clarify that I do not support Israel. I observe it and I observe that they seem to have the power and they're using it. If the other side had the power they would be using it. So I'm not putting an ethical or moral label on any of this and I'm not saying what they should do or what they shouldn't do. I'm just telling you what they're doing. And one of the things I predicted was they were never going to let the Gazans move back into Gaza and that they would have to depopulate it and just move people somewhere else or keep them in camps or something. And it looks like that's exactly what's happening.
So the biggest mass displacement of the war so far, Israel is calling it creating security zones but one assumes the security zones will grow to the entire thing and they plan to be more aggressive for a year. But Hamas apparently has offered to release all the remaining hostages in exchange for a permanent ceasefire which suggests that Hamas knows that Israel's real aim is to depopulate the area, kill every member of Hamas even if it costs them their hostages. Now I don't think Israel is going to stop just because they have a chance to get the hostages back. They might keep negotiating but they're done with Hamas. Hamas will be trapped and destroyed in their tunnels and I don't think there's any way around it. And eventually Gaza will be just owned and operated by Israel. And I believe I'm the only person who told you that from the jump. Can you confirm or deny that that's true? I saw no other commentator say from the very first the Palestinians are not going to be living in Gaza when this is done.
Now part of it is that Israel used the term total victory and they said things like it will never be the same. Now when you hear total victory and you hear it will never be the same there what did you think was going to happen? Because if all they did was fight for a while and then say, "All right, let's try living together again," would that be total victory? No. No. That wouldn't even be anything. If they had negotiated for the hostages and then said, "All right, we promised we'd get our hostages back so now you can keep on living and Hamas you can keep on running Gaza." That's not really total victory, is it? It's not even close. It's more like losing.
So yes there's really no chance that the Palestinians will be going back to Gaza and living there. Now again if you're new I'm not saying that's good or bad or moral or ethical or not. That's up to you. Make up your own decisions. I'm just predicting. And I'm saying that if you were in that situation what would you do? If the situation were reversed what would Hamas do? This. They would do this. Everybody in this situation would end up defaulting to this because everything else doesn't make sense at all. And the United States is kind of distracted at the moment. So if we had an impulse to try to stop Israel from doing what it's doing I don't think this would be the time we'd use it. So that looks like what's going to happen.
And that ladies and gentlemen are my comments for today. I'm going to make a few comments privately to the locals subscribers but for the rest of you thanks for joining on YouTube and X and Rumble. And I'll see you again tomorrow. Same time, same place. And locals coming at you privately in 30 seconds.
check the stock market, but we all expected that.
So, no big news.
We knew it was not going to be a good week for the stock market.
Let's get my comments going here.
And then we've got the show that you deserve.
If you've been good, and I'll bet you have been.
I'll bet you've been good.
Good morning everybody and welcome to the highlight of human civilization.
It's called Coffee with Scott Adams and you've never had a better day.
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Well, I guess it's going to be up to me to explain tariffs and everything else because it's all terribly complicated.
But first, let's see if there's any science that didn't need to be done.
Oh, here we go.
According to Pedipixel, which sounds like a weird name, Matt Grokoot.
How could that be a real name?
Grooot.
Poor guy.
Matt Grokoot.
Anyway, uh there's a study and the study finds that if you smile in your profile picture, uh more people will want to do business with you and you'll make more money.
Now, that's quite a surprise, isn't it?
Do you know what they could have done instead of this study?
They could have just asked me, "Scott, is it good if people smile in their profile picture?" Yes.
Yes, it is.
Well, we were thinking of doing a big expensive study.
Don't bother.
People like it when you smile in your profile picture, but will they be more willing to do work with you and, you know, maybe buy things from you?
Yes.
Yes.
Smiling can do all of that for you.
So next time just talk to Scott.
I can save you a lot of time.
Well, the Trump administration is freezing $510 million um from Brown University according to the Daily Caller.
Reagan Ree is writing and uh it's because Brown University has been accused of not doing enough about anti-semitism and uh their DEI program is a little problematic as well.
Uh but more than that, I think they need to change the name of their university to something more inclusive.
I mean, the name of the college is Brown University.
I mean, seriously, you're going to have to change the name.
I think something like rainbow university or all the colors university or be they black, be they white, be they any other color university, but you just can't call it Brown University.
If DEI is your problem, change that name.
Okay, it's certainly named after a person named Brown, but that doesn't matter to the joke.
Well, there's yet another day, this is the millionth day in a row, in which uh somebody has breathlessly um posted on X that some new AI app can create people who are doing what you want them to do.
So, if you dance, it makes it look like a celebrity that you selected is dancing.
And you can make them do all kinds of things.
You can make them Marilyn Monroe.
And does it matter which app it is?
No.
Because nobody's ever going to do anything useful with that.
How many times have you seen an AI app that promises to make Oh my god, with this kind of tool, I could make my own fulllength movie.
Has anybody made a full-length AI movie?
Nope.
Is anybody close to making a fulllength AI movie?
Nope.
Because I've tried a little bit um you know image generation stuff just to see what's going on.
I think I use Gros and maybe Chad GBTS.
And so I thought to myself, okay, I'm I'm already a visual artist kind of.
And so I'll tell the AI to make and then if it's not exactly what I want, how great will this be?
Because I can just tell it to change it.
I can say, "Change the color of that shirt and put it in a tropical setting and pretty soon with very little effort, I'm gonna have like a piece of art." It took me about 10 minutes of messing around to say to myself, I have no interest in doing this whatsoever.
And it never got close to what I wanted cuz it turns out that the thing in my mind uh just couldn't be re reproduced by AI.
There was just always something that wasn't close.
And I think all of these image generation things where you think, ah, we must be five minutes away from Hollywood being able to make a full-length movie with this technology.
Nope.
Nope.
You're not even close.
uh you would not get anywhere close.
Um I'm going to double down on my prediction or triple down or quadruple down because I keep saying it that art pretty much all art forms are only attractive to us as consumers if we know that it was made by a human.
And it's not because we're anti- AI or something.
It's because it's related to our mating instinct.
So when you see an artist who does something that you can't do, you say to yourself, you don't maybe you don't say it consciously, but your instinct is to want to mate with the artist because the artist has some kind of genetic thing you don't have.
If you see somebody who can play the piano like Beethoven and even write write the music like Beethoven, you are automatically triggered to say, "Really?
If I mated with that, maybe I'd have a child who is super skilled.
All right, bring it on.
So, I don't think AI will ever produce any art that anybody cares about.
That's what I think.
Uh, but it might be the end of drawing.
I was doing some drawing yesterday uh for you know my job and I realized that a child born today will never even learn to draw because it wouldn't have any utility.
They'll just they'll just learn to use AI to make images.
Why would you learn to draw if you were a child born today?
No real reason.
I I'm almost wondering if children born today will learn to write because you could just talk to the computer and it'll write it perfectly for you.
At what point is it just useless to learn how to do it yourself?
I don't know.
We're getting close.
All right.
Uh, apparently, according to Zero Hedge, Republicans, the Trump administration, uh, are looking at raising a new, well, creating a new tax bracket for those over earning over a million dollars a year.
Uh, does that sound like something that Trump would be okay with?
It doesn't to me.
Um, you know, I I suppose it would be popular or help him sell the tax package if he does it, but uh not a big fan.
Not a big fan of that.
If you had any idea what the tax burden is for people who make over a million dollars a year and let's say they don't have any fancy ways to hide it.
They're not they're not in real estate or they don't own a you know gigantic company with lots of ways to hide your taxable income.
If you're just making a lot of money because you're a surgeon or something, the tax burden is insane.
It's insane.
And then when you die, the government takes 40% of what's left.
There's there's really no hope.
Well, let me put it another way.
If you made a if you were so good at your job that you made a million dollars a year every year that you worked and then you retired, you would not be leaving your children much of anything at all because what it would cost you to live would be about the same.
your taxes would take most of it and then your estate tax would take 40% of what's left and then if you had three kids and you divided by three, not much left.
So, uh really the the government in its current form has made it kind of impossible to build wealth in a realistic way, you know, unless you're just killing it and then you can do it.
But but you'd have to get so lucky.
But people who are making a million dollars a year, just like clearing a million dollars a year, they're not they're not creating a dynasty.
That's just that's just living a pretty good life while you're alive.
Pretty good life.
Well, meanwhile, Klaus Schwab is stepping down for the World Economic Forum.
We knew this was coming.
But is it my imagination or did the people who were quite worried that the World Economic Forum was going to be like a shadow government and you really running the whole world and all that, did we just stop thinking and talking about it?
Because I never bought into that, you know, I was just sort of observing it from the outside.
But to me, it just looked like what Elon Musk said once, a rich people club.
And they had some preferences, you know, they wanted some climate change and maybe they wanted you to eat bugs and not own as many things and, you know, rent them instead.
But did any of it make any difference?
I don't know.
It It doesn't seem like it really did.
And now that Clouse is gone, you wonder if all the clout the Klouse clout will be gone.
So uh but I also wonder did we think that the WF World Economic Forum was the shadow government until Doge discovered that USA was a shadow government at least for the United States and and for a lot of countries it affected.
So maybe we just like having the idea there's a shadow government, but as soon as you see that uh as soon as you see that what USID was doing, that looks like the real one and then the World Economic Forum again just looks like a rich person's club.
So Klouse is uh stepping down.
Uh Trump called the uh situation in France where Marine Leen who was the front runner for the presidency uh got taken out by lawfare or at least that's what it looks like from you know this this part of the world and Trump called it a witch hunt and said it was the same playbook that was used against Trump to take him out.
Now do you buy that?
Do you buy that it it wasn't a legitimate prosecution?
It maybe wouldn't have happened to anybody else and that it was completely political and it was for the purpose of taking a round of the election.
I do I do now could be wrong maybe but we live in a world where unfortunately that would be the most obvious and routine thing that would happen because we're seeing in other places.
You know, it seems to me that remember when the first time you learned that George Soros had figured out that the best way to control the country is to control the prosecutors and maybe some judges.
Because if you get the attorney generals and the prosecutors on your side, you can kind of control the legal system.
And if you control the legal system, you are the government because you can take out a candidate.
If you can take out a candidate like Trump or you can take out Marine Le Pen, you're kind of the government.
And remember how clever that seemed?
We thought, man, this Soros guy is so clever.
He figured out the least expensive way to control a country.
Then he was, you know, controlling the United States, it felt like.
And then we learned that USAID has been doing exactly that to other countries massively and for decades.
So apparently one of the first things we do when we want to control another country is we look to control their courts.
We try to get a try to get a judge and a you know prosecutors that we can control or bribe or you know somehow have some influence over.
So it does seem that all governments that you would call part of the democratic world, they all seem fake because I believe that if your if your court system has been corrupted and that certainly is the case in the United States, seems to be the case in France, probably the case in every country that USID was working in.
I'm not sure any of the democracies are real.
I think that they might all be pretend and that the real government is whoever put in the corrupt judges.
You know, remember Joe Biden and the uh the prosecutor, he said, "Well, we won't release your billion dollars to Ukraine unless you get rid of that prosecutor." That was just this.
It looks like it it was just another case where we couldn't control Ukraine unless we could control, you know, their judges and prosecutors.
So it looks like that's what he was doing.
So once you learn that the governments all look fake, they all look fake.
If you look at let's say an election in the United States, do you think it will be determined by the candidates and the voters or will it be determined by whatever corrupt judges decide is going to be legal today?
I think the judges can change the rules.
They'll decide what's in do you need voter ID?
Are you going to reortion the district so that you get, you know, more representatives?
I think the courts kind of control democracy and so to me everything looks fake as long as the courts and the judges don't look credible and they don't look credible at this point.
So there's that.
So Laura Loomer made some news by apparently she had identified some uh what Glenn Greenwald calls three pro-war members of the National Security Council and she talked to Trump and Trump fired them immediately.
Now how do you interpret that if you're an anti-Trumper?
You say to yourself, "What?
This Laura Loomer conspiracy theory lady um is is so powerful.
She's she's causing policy to happen in the White House.
Is that what's happening?" Let me give you my frame on this.
U I've I've said this a number of times about Trump.
One of his superpowers, one of one of his strengths is that he's really good at listening to everybody.
He you'll listen to Bill Maher.
He listened to me when I visited.
You'll listen to uh Rock, you'll listen to Laura Loomer, but you will also listen to Scott Bessent and you know all the top economists and uh you'll listen to other world leaders.
and he's really good at scanning the room and listening.
Now, the other thing I teach you is that the person with the best ideas is always in charge.
So, Laura Loomer must have done some research or had some information that Trump was not aware of and she had credibility from other interactions.
So, he was willing to, you know, give her a listen.
She described these people and why she thinks that they were dangerous to keep on because they're kind of pro-war, you know, maybe not as pro.
Trump as they could be.
And uh he decided cuz he's the decider.
Uh that's a good point.
I didn't know about that.
They're gone.
I don't have any problem with that at all.
To me, that all looks positive.
positive part is that Trump is always scanning uh his his base to find out what they think and and listening to suggestions.
I I can't tell you how many times I've heard that somebody made a suggestion to the Trump White House and then when it got to Trump, he said, "Huh, pretty good idea.
Let's do that." It's very common and I don't think any other president has has had the confidence or or just the vision to see what everybody wants and to be able to decide, oh, I like that one.
I don't like this one.
I like this one.
I don't like that one.
So, I love the fact that Loomer could come in with some some information of value because otherwise Trump wouldn't have acted if it had no value and uh he acted on it.
So, I I don't think that story is about Loomer.
Uh but she's she's doing a hell of a job of of making herself relevant in the uh entire political process.
So, hats off to that.
Um, but this is a Trump story and Trump doing the thing I like best about him, listening, taking people seriously and then acting, you know, without any hesitation.
Um, so I saw a uh there's going around on X there's a video of Chuck Schumer in 1996 and he's uh Chuck Schumer is basically sounding exactly like Elon Musk talking about immigration and Schumer in 1996 he's arguing in the Congress and he says the number one reason that illegals come to the US is so they can defraud programs like social security.
Does that sound familiar?
It's 1996 and it's Chuck Schumer.
Now, today he would say exactly the opposite.
Oh, stop accusing those illegals.
Uh there's nothing going on completely opposite.
Now, that's not the only person who's on video doing things that look sort of opposite based today.
Uh, according to the Wall Street Apes account, uh, in 1996, Pelosi was encouraging, um, Congress to back reciprocal tariffs.
Do you think she's doing it today?
Probably not.
In 2008, Bernie Sanders wanted tariffs uh because he says jobs are going overseas.
Uh, actually, Bernie might be consistent.
I think he might I I'll have to check on that, but I think Bernie might be consistent because I think he agreed with Trump on some tariff stuff.
And in 2018, Barack O Barack Obama Obama uh called for reciprocal tariffs.
Do you think he's doing it today?
So, here's my take on Republicans versus Democrats.
My my observation having spent a lot of time with you know both is that Republicans have core beliefs.
Now I know that sounds funny because you think everybody has core beliefs but I don't think so.
I think Republicans have core beliefs and they don't really change.
Um and Democrats have performances.
So, one has core beliefs and you could predict if if you found a video of a Republican talking 20 years ago, would it look that different from a Republican talking today?
I feel like it would look a essentially the same.
Whereas the Democrats, you can always go back and find them having the opposite opinion.
The indication to me is that one group is performing and one group is acting on their actual core beliefs.
And once you see it, you can't unsee it.
But let me give you another example here.
Um, according to Rasmusen polling, uh, Stephen A.
Smith, you know, you know, uh, would you call him, uh, entertainer or ESPN commentator?
Let's call him Stephen A.
Smith that if you throw him in the mix for potential candidates to be president of the Democrats, he he actually scores pretty well.
Um so let's see, uh 33% of likely US voters view him favorably.
And in a hypothetical matchup, um 31% would vote for Nuome, but 28% for for Stephen A.
Smith.
and he would do about the same against AOC.
So, he's not the leading person, but he's also not running at all.
I mean, I think he's been pretty clear that even being considered a presidential candidate is less about him.
I like the way he says this, by the way.
It's less about him and more about the complete lack of uh good candidates.
He's totally right about that.
But here's the thing.
Stephen A.
Smith is a performer.
Now, he's a commentator, but what makes him like extra good at his job is that he performs.
Like he's he goes big when he comments and that makes him hard to look away.
I I find him totally engaging and very skilled at doing what he does, which is get your attention, hold your attention.
Uh, my experience is if I come across a a clip of Stephen A.
Smith, it's hard to stop watching it because he's just so high energy and, you know, he he makes sense most of the time.
Um, but he's a performer, so that makes sense in the Democrat world.
Find a performer because it's all performance.
Well, there's a study by uh well, Cypost is writing about it.
Um it was published in the personality and social psychology bulletin that says that liberals show less empathy to political opponents than conservatives do.
So, liberals would care less if conservatives had something bad happen to them, whereas conservatives might, you know, deeply disagree with the liberals, but wouldn't find pleasure in seeing something bad happen to them.
Is that surprising?
Nope.
Because I'll tell you my my current view on Democrats besides the fact that they're performing as opposed to operating on core beliefs.
I think Democrats are motivated by jealousy and hate and that's why they perform.
Imagine if your core belief was non-existence, but your your real motivation is a revengey, jealousy, hatred of people who are doing better than you, you would have to perform because you couldn't say the truth.
You couldn't say, you know, honestly, I'm just full of hate.
So, I think I, you know, want Trump to lose.
Uh, not because he's doing a bad job.
I'm just full of hate.
And uh, Doge, even though it sounds like a good idea on paper, Musk is so rich and having so many babies.
And I'm not having any babies, and I'm not rich.
So, I I just like to see him fail.
You couldn't really do that.
You can think it, but you can't say it out loud.
So, you're going to have to put on a performance instead.
you're going to have to pretend that you have normal views and that you're a normal person.
But Republicans seem motivated by um two things.
One is the ick factor.
Now, you've heard this before that um conservatives seem to be more likely to be icked out by anything that's non-standard or just icky.
And you know, I I don't want to give you examples what that is cuz uh cuz that would cause problems.
But there just some things that make conservatives go gh that out of here.
I don't want to be part of that at all.
But that's not the only factor.
I think uh Republicans have a growth mindset which is you know you can you can do well, the country can do well, we can we can create more for everybody.
So, if you have a growth mindset, you don't really need to pretend when you're talking about what you want.
I want to lower taxes.
I want to get rid of regulations.
It's just a growth mindset.
And the Democrats are just literally just putting on performances trying to cover up the fact that their real motivation is just some kind of horrible hatred.
That's what it looks like to me.
Well, here's something I didn't know.
Uh, according to the Amuse account on X, did you know that the person who at one point had been tasked with determining whether or not Dr.
Fouch's gain of function research was ethical or not was, who do you think it was?
Of all the people in the world, who would be in charge of determining that Fouch's gain of function research in China was ethical?
Well, it turns out it was his wife.
That's the first time I knew this.
So his wife, who I guess just got fired by Trump, uh she was the head of the NIH office of bioeththics.
So he was actually being evaluated by his wife for whether or not he was acting ethical or not.
What just happened?
Did my light just go out?
Hold on.
Well, that's weird.
That's the uh second independent light in my uh studio that just went out on its own while the other lights didn't go out.
I'm pretty sure I'm affecting my lights today.
I do that sometimes.
Well, according to ABC News, um Robert F.
Kennedy has cut more jobs at the uh Health and Human Services than he wanted to.
So, some people will be hired back and those would have been called mistakes.
Now, how would you report this if you were ABC News?
Would you report it as that dumbass?
He should have used a scalpel instead of a a hammer.
And uh now he's made this terrible mistake and now he's gonna have to correct it.
Let's hope he's smarter next time.
Well, I would call that the low experience take.
Uh here's what an experienced person would say about that situation where big cuts were needed, big cuts were made, but then it went a little too far.
So they have to back up and correct a few things.
Um I would say that the the view that he should have done it perfectly the first time is what very inexperienced people say about things.
You know, I I'm no expert, but uh I think you should do everything perfectly every time.
What?
That that's what the Democrats with not much experience say, you know, who've never been in business, never done anything important.
That's not a thing.
You can't do something of that size and scale and do it perfectly on the first try.
Nobody could do that.
So don't even imagine that if he tried harder or used his scalpel that he could have gotten it exactly right the first try and gotten it done on time.
If you had infinite time, you still couldn't do it because if you have infinite time, then forces working against you will have time to organize and thwart you and get in the way.
So the best way to do this stuff is take your best cut at it.
make some mistakes and then correct them as you need to.
That's a perfect job.
Inexperienced people say, "Well, you had a choice of just doing it perfectly in the first place.
Why didn't you just measure twice or thrice before you cut?" I mean, there there's a little thing that even says says what you should do.
Measure twice, cut once.
Have you never heard that?
I mean, if you've heard it, then I guess you would never make any mistakes.
But it's a good thing that I'm cleverly telling you now with all my lack of experience how things work in the real world.
Yeah.
Do it without mistakes.
I'm going to add that to my other thing that only inexperienced people say, which is you should have done it sooner.
Do you know what else you should have done sooner?
Everything.
Everything that was worthwhile, you should have done it sooner.
What about Doge?
Should have done it sooner.
What about tariffs?
Sooner.
What about tax cuts?
Sooner.
Everything should have been done sooner and perfectly.
It should have been done sooner and perfectly.
That's what all the dumb people will tell you.
Anyway, so I was looking at uh so PJ Media Victoria Taft is writing about this that uh Congresswoman uh Japal uh Promeila Japal and um some Harvard professor are behind the training of people to resist um Doge and and Tesla.
So, they're they're actually doing resistance training to get more people onto the streets.
Resistance training.
Now, here's the fun part.
I happened to be watching Japal um getting interviewed live the other day and she said that this resistance training that they were giving was part of capacity building.
Now, do do you know where I'm going with this?
If those of you have listened to Mike Benz, he talks about the CIA and often working with USAD in the past where they would do capacity building as part of the uh plot to overthrow other countries.
Now, capacity building would be things like making sure that you had co-opted the media or or maybe introduced a new form of media that was going to say the right things, or you had uh trained people to resist on the streets, which is exactly what Japal is working on.
And I said to myself, what are the odds that she would use that phrase?
Have you ever heard any just member of Congress talk about capacity building?
Have you ever heard anybody anybody in any context use the phrase capacity building?
The only place I've ever heard it is from Mike Benz and he didn't make it up.
He's training us to understand that that's a CIA phrase.
So, do you think that Japal accidentally admitted that she's CIA influenced?
I do.
I don't have proof, but that was a pretty big signal that uh she's had some kind of training that's either adjacent to or because of the CIA.
And that would explain so much that I didn't understand about her.
So much.
So I can't say for sure, but if you see any anybody who's training people to resist on the streets and they refer to their own work as capacity building, it's probably means exactly what you think it means.
And if I had never heard Mike Ben talk about it at length, I wouldn't have caught it.
But that little, by the way, this is a it's a hypnotist thing.
Hypnotists will tell you that people tell you exactly what their hidden thoughts are.
They just don't know they're doing it.
So, I'm always looking for the hidden thoughts based on their choice of words.
This one just jumped right out.
So, that was interesting.
All right, let me give you an update on tariffs.
Now, as if if you're brand new to my live stream, uh you don't know that I'm uh I'm completely disgusting because I often mention that I have a degree in economics and um an MBA from a top school.
So, a person like me should certainly understand tariffs.
I mean, with all of my sophisticated education background, of course, I understand everything about tariffs, and I'm going to explain it to you now in the simplest possible way, and then you'll be as smart as I am about tariffs.
Wouldn't that be great?
Don't you want to be as smart as I am?
Um, well, no.
The the real story is economics is not even real, but we'll get to that.
So when you see people complaining that the stocks went down and and they lost money, that's not real.
Nobody lost any money unless it stays down and never goes back up, which has never happened to the stock market in the history of the stock market.
There's never been a time when it went down and just kept going down.
Now, if we ever do see that, that will be, you know, the end of the United States.
But in all likelihood, there's a temporary uncertainty and that, you know, things are likely to adjust.
So, I was watching um I was watching somebody, it doesn't matter who, just saying, you know, and I lost all this money in the stock market.
No, you didn't.
Not only did you not lose it, but your percentage of ownership of the country stayed about the same.
Meaning that if you owned this, you know, tiny bit of stock, you owned a tiny bit of the country because the country is mostly, you know, corporate wealth.
And if everything went down, you probably own just about the same percentage of the country as you owned before.
So, it's not as bad as as it could be.
Um, I haven't sold any stocks.
You know, I'm just going to write it out.
I'm not not terribly worried.
Uh, I don't know.
I don't have a estimate of when it will bounce back.
Could be sudden.
Could be any time.
I don't know.
Could be months, could be longer.
But, uh, what what do you think about the people in the news business?
I think the people in the news business uh are not waiting for manufacturing jobs to come back so they can get one, but they definitely have some money in the stock market.
If you're in the news business, you're well paid and you you probably got a 401k.
So, the people in the news are going to obsess about the stock market because that's what affects them.
They're not going to say, "Well, thank goodness, you know, we have a plan in place to bring back those good manufacturing jobs so I can get one of those and stop being on MSNBC." No, they're only going to be worried about the stock because that's what affects them and it's also what they understand or they think they do.
So, first thing you need to know is that Jim Kramer thinks these tariffs are a terrible idea.
Now, if you spend any time on the internet, you know that Jim Kramer is famous for being a contra indication of what's gonna happen.
So, if he thinks it's a bad idea, might be the best idea ever.
We'll see.
Apparently, General Motors says they're going to dramatically increase car production in the US.
And that's directly because of the uh tariffs because it'll make uh foreign cars more expensive.
So GM is thinking, "Oh, good.
We're going to sell more." Uh likewise, uh Ford is no likewise, but in addition, Ford is rolling out, uh what they call employee pricing.
So they're going to allow anybody to buy a Ford for what would have been the same price that their employees could get them.
I don't know how how good a deal that is or not, but it doesn't doesn't count with some of their best cars.
uh doesn't count like the Raptor or the Mustang or the Bronco or the Expedition or the Navigator or the Superduty trucks.
So, it's not the best offer in the world, but it'd be great if you're looking for an ordinary Ford car and you just want a good price.
But I think the lowhanging fruit here is US companies that will benefit from the tariff and already have facilities.
So all they have to do is, you know, increase production at the existing facilities.
So when you see that kicking in, that's probably a good sign.
Um, here's a just so predictable.
So Republican uh Chuck Grassley is working with a farleft Democrat, uh, Maria Kwell.
Can't well.
That sounds like the the worst name for somebody who's trying to get something done.
Can you do this?
Well, can't Well, anyway, uh the two of them are working together in a bipartisan way to try to wrestle control from Trump about tariff decisions and make sure it's in the uh it's in the Congress.
So they want to make some new legislation that basically, you know, cod codifies the fact that Congress is the one who can raise taxes and decide on tariffs.
So this would be game over.
Now, now I don't know what the odds are that this gets passed.
I think low, probably pretty low odds that it gets passed, but this would be terrible.
It would be basically neutering Trump's ability to negotiate, to do anything useful with tariffs.
But uh there we are, Chuck Grassley trying to take control of that for the Congress, which as you know is worthless according to the Economist magazine.
All right, here we go.
Now, the Economist magazine would be written by people who really understand economics.
So, whatever their take on this would be the the smart take, right?
So, they put out a magazine.
Uh oh, and did I mention that they're called The Economist and they think that magazines are still a good business model?
That's sort of disqualifying from being an economist.
Uh what's your business model?
Well, we've got a magazine.
Okay.
But what they say is that uh uh this is right on the cover of their new magazine that Donald Trump has committed the most profound harmful and unnecessary economic error in the modern era.
Almost everything he said on history, economics, and the technicalities of trade was utterly deluded.
Um but if you want to hear the counter to that uh all-in pod and u entrepreneur Jimoth Pella Hapata um commented on that and he called them a mouthpiece of globalist rhetoric that is literally always wrong.
So Jamath was uh kind of commenting that the more the economist hates it, the more likely it's a good idea.
I don't think he's wrong.
You may have heard that Trump's getting some push back because Russia and you North Korea, Cuba, and Bellarus are not on the tariff list.
And you might say to yourself, "Wait a minute, is it because he's Putin's secret lover that he doesn't want to put him on there?" But anyway, the White House clarified that those countries and Russia in particular are so uh they're already so uh restricted.
So they've got high tariffs already and all kinds of sanctions and so there's not any meaningful trade with those countries.
I think there are some things like potsh or something that we trade with Russia but nothing meaningful that uh would be worthy of derailing any peace talks.
So makes sense they left them off.
Uh China has responded to the tariffs on them with a reciprocal tariff.
So they matched it with a 34% tariff uh on imports of all US products beginning April 10th.
So that matches the the US.
Um is that the beginning of negotiations?
Maybe.
We'll see.
Um New York Post is saying that uh your i.
Phone could get a lot more expensive because of the tariffs if they stayed in place, especially the China stuff because it would make your your i.
Phone be over $2,000.
they think.
Would it?
I don't know.
And if it were, maybe Apple would work hard to bring it to the United States.
I don't know if they could make it cheap enough in the United States, but maybe that'll happen.
Then the New York Post is talking about the cost of your buying your your Air Jordans um shoes that are made in Vietnam, which is also getting a big tariff.
and that your Air Jordans that used to cost $180 might cost $18 more.
You know, the the a lot of things that are optional purchases.
I'm not terribly worried about an optional purchase expensive sneaker.
Seems like you could live without one.
Um, the other thing Trump said, which was interesting, you remember I told you that China is unlikely to agree to a Tik Tok sale because I think they'd want to see Trump fail and it would be worth a few billion dollars to do it.
Um Trump hinted that uh without actually committing to it, he just said it was an example, but he was clearly hinting that uh China might want to negotiate a better tariff situation uh in return for saying yes to a sale of Tik Tok to a you know US buyer or a buyer a team of buyers.
So clearly Trump knows that China saying yes to any kind of a tick tock sale is going to be a hard sell and that if you didn't bring in a completely unrelated piece of business which is the tariffs, you probably couldn't get it done.
So I think he he understands that China is probably a hard no.
Even if they lose billions of dollars, I think that they would let that go.
I think they'd spend billions to embarrass Trump and make sure he didn't get their crown jewel social app.
Um, we'll see.
But it's interesting that Trump did set that up as a bargaining chip kind of situation.
Well, I saw one theory that uh Trump's real play with the tariffs is to lower interest rates.
And the way that would go is that the the tariffs would scare the stock market and then people who took their money out of the stock market wouldn't want it to be idle.
So they would put it in bonds.
And if a lot of people buy bonds that would lower the interest rate on bonds because supply and demand.
And then if interest rates come down then the Fed might lower interest rates.
And then suddenly when we go to um go to get our debt refinanced, we would be doing it at a much friendlier interest rate which could be tremendously useful to the country.
I don't know that that's the plan.
It's just something that might happen.
So the reason that no economist knows what's going to go on is there are way too many moving parts.
So, you got your interest rates and you got well, here's other stuff.
Uh, the Wall Street Journal, yeah, the Wall Street Journal is talking about the impact on the value of the dollar, right?
So, you got the interest rate issue that's hard to predict.
And on top of that, there's the value of the dollar that's hard to predict.
And there's not even an agreement about whether a strong dollar is good for the country or a weak dollar is good for the country.
So economists can't even decide do we like a strong dollar or a weak dollar.
Uh but it is likely that the dollar will weaken if the tariffs stay in place and it it continues to rile the market.
So that's another thing.
Um then I saw a uh according to spectator index on X the price of oil went down 4%.
Also probably because of the tariffs but I'm not sure.
So if oil goes down that should trickle into all the other costs.
So you've got the uncertainty of whether a strong or weak dollar is good or bad.
You've got the interest rate effect that's unpredictable.
You've got the energy cost that should lower prices, but would it be enough to compensate for the rise in prices?
You've got the question of who's going to absorb various tariffs?
Will it always be the the importing company or in some cases, will the exporter absorb some of it?
Then you've got the how long will it take um how long will it take to uh get manufacturing coming back to the United States?
How many how many adjustments can the industry make quickly?
We don't really know.
So the number of unknowns involved in this are just through the roof.
Um, but one thing's for sure, the people who know the least about economics are very certain that they know a lot about economics.
I think the more you know about economics, the less confidence you would have on which way things are going to go.
Because if it turns out that it's just a good negotiation, that's going to be great.
You would just get better deals.
If it turns out, you know, it's going to go some way that nobody could predict, well, anything could happen.
We'll see.
But here here's what you need to know.
Economics is more art than science.
All right?
You you think economics is more it feels like you it feels like it's some kind of a hard science.
It's not.
It's more of an art.
The second thing you need to know is that art is So let's see if you can follow this.
Economics is more art than science and art is Economics is largely You nobody really knows in a situation like this what's going to happen.
We just really don't know.
Um but we'll act like we do.
So, here's here's something that uh I saw some of the non-economists talking about.
Um I saw somebody saying that the reason they're mad at uh at Musk is that he and Trump don't pay federal income taxes.
What do you think of that?
That Musk and Trump don't pay federal income taxes.
Therefore, they're they're sort of parasites on the system.
Well, here's what you need to know.
First of all, I think it's not true.
I think Musk has actually paid more federal income taxes than any living human.
It's just that it depends on the year.
So, he's had one or two years where he had enormous payments because of the financial situation and then some years where it was zero.
Uh Trump of course as as we all know has found ways to avoid taxes wherever he can because he's in the building you know construction real estate business and the tax law is sort of designed to encourage that kind of a business.
So here's what I would say.
The reason that anybody can avoid taxes, be it Musk in some cases and Trump in some cases, is that the government wants this situation.
They would rather promote the growth and the success of a gigantic business than they need specific taxes from that business as it's young.
Now think about all of the the federal income taxes that are created by having a gigantic company with lots of employees.
All the employees are paying federal taxes.
The the businesses themselves probably have enormous uh property tax burden on them which is a state state tax but still it's part of you know the productive uh taxation of the citizens.
um they create things that have sales tax associated.
Again, it's not federal, but it's, you know, adding to the system.
And if you add together all the all the sales tax, property tax, employee taxes, and then the employment itself, and the fact that if people are employed, the government doesn't have to take care of them, the benefit that anybody with a large business that's successful is adding to the country is so great that the government is okay with you not paying federal income tax every single year if you're investing money into your company and that's that's why you're not paying taxes.
So the people who know the least just say, "Oh, they're not paying federal income tax, so that's unfair.
The billionaires are taking our money." That's not really what's happening.
All right, so here's my big worry about the tariffs.
Do we have enough of a runway that we'll know if they're working before midterms?
Because if the economy is still royal the way it is, the Republicans are going to get wiped out in the midterms.
And there's not really much time between now and the midterms for tariffs to do their magic.
you know, not a lot of people are going to be reshoring their manufacturing.
So, I feel like Trump is is risking it all.
Now, I think he had to because the current situation was un, you know, was untenable.
So, it's the right thing for the country that he's taken this risk.
I think um you know we don't know how it's going to turn out but I think it's the right kind of risk at exactly the right time to do it.
But if it doesn't make the public think it's working by the midterms, Republicans are going to get destroyed and then it's all gone.
You're going to lose everything politically.
You're going to lose everything.
And then it could get worse because if this was the only thing that was going to allow us to balance the budget and have some kind of a, you know, strong economy going forward and the Democrats take it away, which they will because they're not going to just let it ride.
Um I this is a really big this is a really big risk but again I would rather that he takes the real risk to really help the country than to do something that would be purely political which is you know paper over it and pretend it's not a problem that things aren't going right anyway.
So worry about the midterms.
Matt Taibbe, journalist Matt Taiibbe is suing a Democratic lawmaker for $10 million um because she made the mistake of saying something on social media that she had said in the context of her job.
If she said something in the context of her job, apparently you can't sue her.
but she made the mistake of putting it on social media and I guess that opened the door for him to sue.
And she made allegations that apparently are thoroughly debunked.
I'm not even going to mention them because, you know, I don't want to put it in your head, but go Taiibbe.
Yeah.
I mean, he he was unfairly accused of something that didn't pan out whatsoever in in the past.
And this uh Democratic California representative Sydney Kim Leger Dove uh just decided to, you know, empty the barrel.
Is that a thing?
Um and just totally trash him in in a public way, including on social media.
So yes, she needs to be completely put out of business.
I I hope he succeeds.
Uh, I saw in a Mario and a recap of the news that the hoodies have shot down a number of drones now.
And our drones cost $30 million a piece, the good ones, the Reaper drones.
And they've shot down three of them.
Uh, two recently just this week.
So, we've lost 17 of them over time, and each one cost $30 million.
So, they've managed to cost us $500 million worth of just drones they shot down in the last six months.
Now, here's my question.
What kind of technology do the Hoodies have that they can so successfully shoot down our drones?
I mean, you know, maybe they miss nine out of 10 times.
I don't know.
But they must have some pretty serious equipment over there that they can spot it and then get to it.
So, I don't know how long it's going to take for us to suppress the hoodies, but looks like it could be a while.
All right, I'm going to claim um I'm going to claim the best predictor of what's happening in Gaza.
Now, those of you who've been watching me for a while, you have to either back me or disagree with me on this.
I I'll tell you the current news and then you tell me, was I the best predictor of what would happen with Israel and Gaza.
Now, if you're new to me, uh I need to clarify that I do not support Israel.
I observe it and I observe that they seem to have the power and they're using it.
If the if the other side had the power, they would be using it.
So, I'm not putting an ethical or moral label on any of this, and I'm not saying what they should do or what they shouldn't do.
I'm just telling you what they're doing.
And one of the things I predicted was they were never going to let the um Gazins move back into Gaza and that they would have to depopulate it and just move people somewhere else or keep them in camps or something.
And it looks like that's exactly what's happening.
So the biggest mass displacement of the war so far, Israel is calling it creating security zones, but one assumes the security zones will, you know, grow to the entire thing.
and they plan to be more aggressive for a year, but Hamas apparently has offered to release all the remaining hostages in exchange for a permanent ceasefire, which suggests that Hamas knows that Israel's real aim is to depopulate the area, kill every member of Hamas, even if it costs them their hostages.
Now, I don't think the Israel is going to stop just because they have a chance to get the hostages back.
They might keep negotiating, but they're done with Hamas.
Hamas will be trapped and destroyed in their tunnels, and I don't think there's any way around it.
And uh eventually Gaza will be just, you know, owned and owned and operated by Israel.
And I believe I'm the only person who told you that from the jump.
Can you confirm or deny that that's true?
I saw no other commentator say from from the very first the Palestinians are not going to be living in Gaza when this is done.
Now part of it is that Israel used the term total victory and you know they said things like uh it will never be the same.
Now, when you hear total victory and you hear it will never be the same there, what did you think was going to happen?
Because if all they did was fight for a while and then say, "All right, let's try living together again, would that be total victory?" No.
No.
That wouldn't even be anything.
Um if if they had negotiated for the hostages and then said, "All right, we we promised we'd get our hostages back, so now you can keep on living and Hamas, you can keep on running Gaza." That's not really total a victory, is it?
It's not even close.
It's It's more like losing.
So yes, there's really no chance that the Palestinians will be going back to Gaza and living there.
Now again, if you're new, I'm not saying that's good or bad or moral or ethical or not.
That's up to you.
Make up your own decisions.
I'm just predicting.
And and I'm saying that if you were in that situation, what would you do?
If the situation were reversed, what would Hamas do?
This.
They would do this.
Everybody in this situation would end up defaulting to this because everything else doesn't make sense at all.
And uh you know the United States is kind of distracted at the moment.
So if we had an impulse to try to stop Israel from doing what it's doing, I don't think this would be the time we'd use it.
So that looks like what's going to happen.
And that ladies and gentlemen are my comments for today.
I'm going to make a few comments privately to the locals subscribers, but for the rest of you, uh, thanks for joining on You.
Tube and X and Rumble.
And I'll see you again tomorrow.
Same time, same place.
And locals coming at you privately in 30 seconds.
check the stock
market, but we all expected that. So, no
big
news. We knew it was not going to be a
good week for the stock
market. Let's get my comments going
here. And then we've got the show that
you
deserve. If you've been
good, and I'll bet you have been. I'll
bet you've been good.
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Well, I guess it's going to be up to me
to explain tariffs and everything else
because it's all terribly complicated.
But first, let's see if there's any
science that didn't need to be done. Oh,
here we
go. According to
Pedipixel, which sounds like a weird
name, Matt Grokoot. How could that be a
real name?
[Laughter]
Grooot. Poor guy. Matt Grokoot. Anyway,
uh there's a study and the study finds
that if you smile in your profile
picture, uh more people will want to do
business with you and you'll make more
money. Now, that's quite a surprise,
isn't it? Do you know what they could
have done instead of this study?
They could have just asked me, "Scott,
is it good if people smile in their
profile picture?" Yes. Yes, it is. Well,
we were thinking of doing a big
expensive study. Don't bother. People
like it when you smile in your profile
picture, but will they be more willing
to do work with you and, you know, maybe
buy things from you? Yes. Yes. Smiling
can do all of that for you. So next time
just talk to Scott. I can save you a lot
of time. Well, the Trump administration
is freezing $510 million
um from Brown University according to
the Daily Caller. Reagan Ree is writing
and uh it's because Brown University has
been accused of not doing enough about
anti-semitism and uh their DEI program
is a little problematic as well. Uh but
more than that, I think they need to
change the name of their university to
something more inclusive. I mean, the
name of the college is Brown University.
I mean, seriously, you're going to have
to change the name. I think something
like rainbow university or all the
colors
university or be they black, be they
white, be they any other color
university, but you just can't call it
Brown University. If DEI is your
problem, change that
name. Okay, it's certainly named after a
person named Brown, but that doesn't
matter to the joke.
Well, there's yet another day, this is
the millionth day in a row, in which uh
somebody has breathlessly um posted on X
that some new AI app can create people
who are doing what you want them to do.
So, if you dance, it makes it look like
a celebrity that you selected is
dancing. And you can make them do all
kinds of things. You can make them
Marilyn Monroe. And does it matter which
app it is? No. Because nobody's ever
going to do anything useful with
that. How many times have you seen an AI
app that promises to make Oh my god,
with this kind of tool, I could make my
own fulllength
movie. Has anybody made a full-length AI
movie? Nope. Is anybody close to making
a fulllength AI movie?
Nope. Because I've tried a little bit um
you know image generation stuff just to
see what's going on. I think I use Gros
and maybe Chad GBTS.
And so I thought to myself, okay, I'm
I'm already a visual artist kind of. And
so I'll tell the AI to make and then if
it's not exactly what I want, how great
will this be? Because I can just tell it
to change it. I can say, "Change the
color of that shirt and put it in a
tropical setting and pretty soon with
very little effort, I'm gonna have like
a piece of art." It took me about 10
minutes of messing around to say to
myself, I have no interest in doing this
whatsoever. And it never got close to
what I wanted cuz it turns out that the
thing in my mind
uh just couldn't be re reproduced by AI.
There was just always something that
wasn't close. And I think all of these
image generation things where you think,
ah, we must be five minutes away from
Hollywood being able to make a
full-length movie with this technology.
Nope. Nope. You're not even close.
uh you would not get anywhere close. Um
I'm going to double down on my
prediction or triple down or quadruple
down because I keep saying it that
art pretty much all art
forms are only attractive to us as
consumers if we know that it was made by
a human. And it's not because we're
anti- AI or something. It's because it's
related to our mating instinct.
So when you see an artist who does
something that you can't do, you say to
yourself, you don't maybe you don't say
it consciously, but your instinct is to
want to mate with the artist because the
artist has some kind of genetic thing
you don't have. If you see somebody who
can play the piano like Beethoven and
even write write the music like
Beethoven, you are automatically
triggered to say, "Really? If I mated
with that, maybe I'd have a child who is
super skilled. All right, bring it on.
So, I don't think AI will ever produce
any art that anybody cares about. That's
what I think. Uh, but it might be the
end of drawing. I was doing some drawing
yesterday
uh for you know my job and I realized
that a child born today will never even
learn to draw because it wouldn't have
any utility. They'll just they'll just
learn to use AI to make images. Why
would you learn to draw if you were a
child born
today? No real reason. I I'm almost
wondering if children born today will
learn to
write because you could just talk to the
computer and it'll write it perfectly
for you. At what point is it just
useless to learn how to do it yourself?
I don't know. We're getting
close. All right. Uh, apparently,
according to Zero Hedge, Republicans,
the Trump administration,
uh, are looking at raising a new, well,
creating a new tax bracket for those
over earning over a million dollars a
year. Uh, does that sound like something
that Trump would be okay
with? It doesn't to me.
Um, you know, I I suppose it would be
popular or help him sell the tax package
if he does it, but uh not a big fan. Not
a big fan of that. If you had any idea
what the tax burden is for people who
make over a million dollars a year and
let's say they don't have any fancy ways
to hide it. They're not they're not in
real estate or they don't own a you know
gigantic company with lots of ways to
hide your taxable income. If you're just
making a lot of money because you're a
surgeon or something, the tax burden is
insane. It's insane. And then when you
die, the government takes 40% of what's
left. There's there's really no hope.
Well, let me put it another way. If you
made a if you were so good at your job
that you made a million dollars a year
every year that you worked and then you
retired, you would not be leaving your
children much of anything at
all because what it would cost you to
live would be about the same. your taxes
would take most of it and then your
estate tax would take 40% of what's left
and then if you had three kids and you
divided by
three, not much left. So,
uh really the the government in its
current form has made it kind of
impossible to build wealth in a
realistic way, you know, unless you're
just killing it and then you can do it.
But but you'd have to get so lucky. But
people who are making a million dollars
a year, just like clearing a million
dollars a year, they're not they're not
creating a dynasty. That's just that's
just living a pretty good life while
you're alive. Pretty good
life. Well, meanwhile, Klaus Schwab is
stepping down for the World Economic
Forum. We knew this was coming. But is
it my
imagination or did the people who were
quite worried that the World Economic
Forum was going to be like a shadow
government and you really running the
whole world and all that, did we just
stop thinking and talking about it?
Because I never bought into that, you
know, I was just sort of observing it
from the outside. But to me, it just
looked like what Elon Musk said once, a
rich people club.
And they had some preferences, you know,
they wanted some climate change and
maybe they wanted you to eat bugs and
not own as many things and, you know,
rent them instead. But did any of it
make any
difference? I don't
know. It It doesn't seem like it really
did. And now that Clouse is gone, you
wonder if all the clout the Klouse clout
will be gone. So uh but I also wonder
did we think that the WF World Economic
Forum was the shadow government until
Doge discovered that USA was a shadow
government at least for the United
States and and for a lot of countries it
affected.
So maybe we just like having the idea
there's a shadow government, but as soon
as you see that
uh as soon as you see that what USID was
doing, that looks like the real one and
then the World Economic Forum again just
looks like a rich person's club. So
Klouse is uh stepping
down. Uh Trump called the uh situation
in France where Marine Leen who was the
front runner for the presidency uh got
taken out by lawfare or at least that's
what it looks like from you know this
this part of the world and Trump called
it a witch hunt and said it was the same
playbook that was used against Trump to
take him out. Now do you buy that? Do
you buy that it it wasn't a legitimate
prosecution? It maybe wouldn't have
happened to anybody else and that it was
completely political and it was for the
purpose of taking a round of the
election. I do I do now could be wrong
maybe but we live in a world where
unfortunately that would be the most
obvious and routine thing that would
happen because we're seeing in other
places. You know, it seems to me that
remember when the first time you learned
that George Soros had figured out that
the best way to control the country is
to control the prosecutors and maybe
some
judges. Because if you get the attorney
generals and the prosecutors on your
side, you can kind of control the legal
system. And if you control the legal
system, you are the
government because you can take out a
candidate. If you can take out a
candidate like Trump or you can take out
Marine Le Pen, you're kind of the
government. And remember how clever that
seemed? We thought, man, this Soros guy
is so clever. He figured out the least
expensive way to control a country. Then
he was, you know, controlling the United
States, it felt like. And then we
learned that
USAID has been doing exactly that to
other countries massively and for
decades. So apparently one of the first
things we do when we want to control
another country is we look to control
their courts. We try to get a try to get
a judge and a you know prosecutors that
we can control or bribe or you know
somehow have some influence over. So it
does seem that all governments that you
would call part of the democratic world,
they all seem fake because I believe
that if your if your court system has
been corrupted and that certainly is the
case in the United States, seems to be
the case in France, probably the case in
every country that USID was working in.
I'm not sure any of the democracies are
real. I think that they might all be
pretend and that the real government is
whoever put in the corrupt judges. You
know, remember Joe Biden and the uh the
prosecutor, he said, "Well, we won't
release your billion dollars to Ukraine
unless you get rid of that prosecutor."
That was just this. It looks like it it
was just another case where we couldn't
control Ukraine unless we could control,
you know, their judges and
prosecutors. So it looks like that's
what he was
doing. So once you learn that the
governments all look
fake, they all look fake. If you look at
let's say an election in the United
States, do you think it will be
determined by the candidates and the
voters or will it be determined by
whatever corrupt judges
decide is going to be legal
today? I think the judges can change the
rules. They'll decide what's in do you
need voter ID? Are you going to reortion
the district so that you get, you know,
more
representatives? I think the courts kind
of
control
democracy and so to me everything looks
fake as long as the courts and the
judges don't look credible and they
don't look credible at this
point. So there's that. So Laura Loomer
made some news by apparently she had
identified some uh what Glenn Greenwald
calls three pro-war members of the
National Security Council and she talked
to Trump and Trump fired them
immediately. Now how do you interpret
that if
you're an anti-Trumper? You say to
yourself, "What? This Laura Loomer
conspiracy theory lady um is is so
powerful. She's she's causing policy to
happen in the White House. Is that
what's happening?" Let me give you my
frame on
this. U I've I've said this a number of
times about Trump. One of his
superpowers, one of one of his strengths
is that he's really good at listening to
everybody. He you'll listen to Bill
Maher. He listened to me when I visited.
You'll listen to uh Rock, you'll listen
to Laura Loomer, but you will also
listen to Scott Bessent and you know all
the top economists and uh you'll listen
to other world leaders. and he's really
good at scanning the room and
listening. Now, the other thing I teach
you is that the person with the best
ideas is always in
charge. So, Laura Loomer must have done
some research or had some information
that Trump was not aware of and she had
credibility from other interactions. So,
he was willing to, you know, give her a
listen. She described these people and
why she thinks that they were dangerous
to keep on because they're kind of
pro-war, you know, maybe not as proTrump
as they could be. And uh he decided cuz
he's the decider. Uh that's a good
point. I didn't know about that. They're
gone. I don't have any problem with that
at all. To me, that all looks positive.
positive part is that Trump is always
scanning
uh his his base to find out what they
think and and listening to suggestions.
I I can't tell you how many times I've
heard that somebody made a suggestion to
the Trump White House and then when it
got to Trump, he said, "Huh, pretty good
idea. Let's do that."
It's very common and I don't think any
other president has has had the
confidence or or just the vision to see
what everybody wants and to be able to
decide, oh, I like that one. I don't
like this one. I like this one. I don't
like that one. So, I love the
fact that Loomer could come in with some
some information of value because
otherwise Trump wouldn't have acted if
it had no value and uh he acted on it.
So, I I don't think that story is about
Loomer. Uh but she's she's doing a hell
of a job of of making herself relevant
in the uh entire political process. So,
hats off to that. Um, but this is a
Trump story and
Trump doing the thing I like best about
him, listening, taking people seriously
and then acting, you know, without any
hesitation.
Um, so I saw a uh there's going around
on X there's a video of Chuck Schumer in
1996 and he's uh Chuck Schumer is
basically sounding exactly like Elon
Musk talking about immigration and
Schumer in 1996 he's arguing in the
Congress and he says the number one
reason that illegals come to the US is
so they can defraud programs like social
security. Does that sound familiar? It's
1996 and it's Chuck
Schumer. Now, today he would say exactly
the opposite. Oh, stop accusing those
illegals. Uh there's nothing going
on completely opposite. Now, that's not
the only person who's on video doing
things that look sort of opposite based
today. Uh, according to the Wall Street
Apes account, uh, in 1996, Pelosi was
encouraging,
um, Congress to back reciprocal tariffs.
Do you think she's doing it today?
Probably not. In 2008, Bernie Sanders
wanted tariffs uh because he says jobs
are going
overseas. Uh, actually, Bernie might be
consistent. I think he might I I'll have
to check on that, but I think Bernie
might be consistent because I think he
agreed with Trump on some tariff stuff.
And in 2018, Barack O Barack Obama Obama
uh called for reciprocal tariffs. Do you
think he's doing it today? So, here's my
take on Republicans versus Democrats.
My my observation having spent a lot of
time with you know both is that
Republicans have core
beliefs. Now I know that sounds funny
because you think everybody has core
beliefs but I don't think so. I think
Republicans have core beliefs and they
don't really change. Um and Democrats
have
performances. So, one has core beliefs
and you could predict if if you found a
video of a Republican
talking 20 years ago, would it look that
different from a Republican talking
today? I feel like it would look a
essentially the same. Whereas the
Democrats, you can always go back and
find them having the opposite opinion.
The indication to me is that one group
is performing and one group is acting on
their actual core
beliefs. And once you see it, you can't
unsee it. But let me give you another
example here.
Um, according to Rasmusen polling, uh,
Stephen A. Smith, you know, you know,
uh, would you call him, uh, entertainer
or ESPN commentator? Let's call him
Stephen A. Smith that if you throw him
in the mix for potential candidates to
be president of the Democrats, he he
actually scores pretty well.
Um so let's see, uh 33% of likely US
voters view him
favorably. And in a hypothetical
matchup,
um 31% would vote for Nuome, but 28% for
for Stephen A. Smith. and he would do
about the same against AOC. So, he's not
the leading person, but he's also not
running at all. I mean, I think he's
been pretty clear that even being
considered a presidential candidate is
less about him. I like the way he says
this, by the way. It's less about him
and more about the complete lack of uh
good
candidates. He's totally right about
that.
But here's the thing. Stephen A. Smith
is a
performer. Now, he's a commentator, but
what makes him like extra good at his
job is that he performs. Like he's he
goes big when he comments and that makes
him hard to look away. I I find him
totally engaging and very skilled at
doing what he does, which is get your
attention, hold your attention. Uh, my
experience is if I come across a a clip
of Stephen A. Smith, it's hard to stop
watching it because he's just so high
energy and, you know, he he makes sense
most of the time. Um, but he's a
performer,
so that makes sense in the Democrat
world. Find a performer because it's all
performance.
Well, there's a study by uh well, Cypost
is writing about it.
Um it was published in the personality
and social psychology bulletin that says
that liberals show less empathy to
political opponents than conservatives
do. So, liberals would care less if
conservatives had something bad happen
to them, whereas conservatives might,
you know, deeply disagree with the
liberals, but wouldn't find pleasure in
seeing something bad happen to them. Is
that
surprising? Nope.
Because I'll tell you my my current view
on Democrats besides the fact that
they're performing as opposed to
operating on core beliefs. I think
Democrats are motivated by jealousy and
hate and that's why they perform.
Imagine if your core belief was
non-existence, but your your real
motivation is a revengey, jealousy,
hatred of people who are doing better
than
you, you would have to
perform because you couldn't say the
truth. You couldn't say, you know,
honestly, I'm just full of hate. So, I
think I, you know, want Trump to lose.
Uh, not because he's doing a bad job.
I'm just full of hate. And uh, Doge,
even though it sounds like a good idea
on paper, Musk is so rich and having so
many babies. And I'm not having any
babies, and I'm not rich. So, I I just
like to see him fail. You couldn't
really do
that. You can think it, but you can't
say it out loud. So, you're going to
have to put on a performance instead.
you're going to have to pretend that you
have normal views and that you're a
normal
person. But Republicans seem motivated
by
um two things. One is the ick
factor. Now, you've heard this before
that um
conservatives seem to be more likely to
be icked out by anything that's
non-standard or just icky. And you know,
I I don't want to give you examples what
that is cuz uh cuz that would cause
problems. But there just some things
that make conservatives go
gh that out of here. I don't want to be
part of that at all. But that's not the
only factor. I think uh Republicans have
a growth
mindset which is you know you can you
can do well, the country can do well, we
can we can create more for everybody.
So, if you have a growth
mindset, you don't really need to
pretend when you're talking about what
you want. I want to lower taxes. I want
to get rid of regulations. It's just a
growth mindset. And the Democrats are
just literally just putting on
performances trying to cover up the fact
that their real motivation is just some
kind of horrible hatred. That's what it
looks like to
me. Well, here's something I didn't
know. Uh, according to the Amuse account
on
X, did you know that the person who at
one point had been tasked with
determining whether or not Dr. Fouch's
gain of function research was ethical or
not was, who do you think it was? Of all
the people in the world, who would be in
charge of determining that Fouch's gain
of function research in China was
ethical? Well, it turns out it was his
wife.
That's the first time I knew this. So
his wife, who I guess just got fired by
Trump, uh she was the head of the NIH
office of
bioeththics. So he was actually being
evaluated by his
wife for whether or not he was
acting ethical or not. What just
happened? Did my light just go out? Hold
on.
Well, that's weird. That's the uh second
independent light in my uh studio that
just went out on its
own while the other lights didn't go
out. I'm pretty sure I'm affecting my
lights today. I do that
sometimes. Well, according to ABC News,
um Robert F. Kennedy has cut more jobs
at the uh Health and Human Services than
he wanted to. So, some people will be
hired back and those would have been
called mistakes. Now, how would you
report this if you were ABC News? Would
you report it as that dumbass? He should
have used a scalpel instead of a a
hammer. And uh now he's made this
terrible mistake and now he's gonna have
to correct it. Let's hope he's smarter
next time. Well, I would call that the
low experience
take. Uh here's what an experienced
person would say about that situation
where big cuts were needed, big cuts
were made, but then it went a little too
far. So they have to back up and correct
a few things.
Um I would say that the the view that he
should have done it perfectly the first
time is what very inexperienced people
say about things. You know, I I'm no
expert, but uh I think you should do
everything perfectly every
time.
What? That that's what the Democrats
with not much experience say, you know,
who've never been in business, never
done anything important. That's not a
thing. You can't do something of that
size and scale and do it perfectly on
the first try. Nobody could do that. So
don't even imagine that if he tried
harder or used his
scalpel that he could have gotten it
exactly right the first try and gotten
it done on time. If you had infinite
time, you still couldn't do it because
if you have infinite time, then forces
working against you will have time to
organize and thwart you and get in the
way. So the best way to do this stuff is
take your best cut at it. make some
mistakes and then correct them as you
need to. That's a perfect job.
Inexperienced people say,
"Well, you had a choice of just doing it
perfectly in the first place. Why didn't
you just measure twice or thrice before
you cut?" I mean, there there's a little
thing that even says says what you
should do. Measure twice, cut once. Have
you never heard that? I mean, if you've
heard it, then I guess you would never
make any mistakes. But it's a good thing
that I'm cleverly telling you now with
all my lack of experience how things
work in the real world. Yeah. Do it
without
mistakes. I'm going to add that to
my other thing that only inexperienced
people say, which is you should have
done it
sooner. Do you know what else you should
have done sooner? Everything.
Everything that was worthwhile, you
should have done it sooner. What about
Doge? Should have done it sooner. What
about
tariffs? Sooner. What about tax cuts?
Sooner. Everything should have been done
sooner and perfectly. It should have
been done sooner and perfectly. That's
what all the dumb people will tell you.
Anyway, so I was looking at uh so PJ
Media Victoria Taft is writing about
this that uh Congresswoman uh Japal
uh Promeila
Japal and um some Harvard professor are
behind the training of people to resist
um Doge and and Tesla. So, they're
they're actually doing resistance
training to get more people onto the
streets. Resistance
training. Now, here's the fun part. I
happened to be watching Japal um getting
interviewed live the other day and she
said that this resistance training that
they were giving was part of capacity
building.
Now, do do you know where I'm going with
this? If those of you have listened to
Mike Benz, he talks about the
CIA and often working with USAD in the
past where they would do capacity
building as part of the uh plot to
overthrow other countries. Now, capacity
building would be things like making
sure that you had co-opted the media or
or maybe introduced a new form of media
that was going to say the right things,
or you had uh trained people to resist
on the streets, which is exactly what
Japal is working on. And I said to
myself, what are the odds that she would
use that phrase? Have you ever heard any
just member of Congress talk about
capacity building? Have you ever heard
anybody anybody in any context use the
phrase capacity
building? The only place I've ever heard
it is from Mike Benz and he didn't make
it up. He's training us to understand
that that's a CIA phrase.
So, do you think that Japal accidentally
admitted that she's CIA
influenced? I
do. I don't have proof, but that was a
pretty big
signal that uh she's had some kind of
training that's either adjacent to or
because of the CIA.
And that would explain so much that I
didn't understand about her. So much. So
I can't say for sure, but if you see any
anybody who's training people to resist
on the streets and they refer to their
own work as capacity
building, it's probably means exactly
what you think it means. And if I had
never heard Mike Ben talk about it at
length, I wouldn't have caught it.
But that little, by the way, this is a
it's a hypnotist thing. Hypnotists will
tell you that people tell you exactly
what their hidden thoughts are. They
just don't know they're doing it. So,
I'm always looking for the hidden
thoughts based on their choice of words.
This one just jumped right out. So, that
was
interesting. All right, let me give you
an update on tariffs.
Now, as if if you're brand new to my
live stream, uh you don't know that I'm
uh I'm completely disgusting because I
often mention that I have a degree in
economics and um an MBA from a top
school. So, a person like me should
certainly understand tariffs. I mean,
with all of my sophisticated education
background, of course, I understand
everything about tariffs, and I'm going
to explain it to you now in the simplest
possible way, and then you'll be as
smart as I am about tariffs. Wouldn't
that be great? Don't you want to be as
smart as I
am? Um, well, no. The the real story is
economics is not even
real, but we'll get to that.
So when you see people complaining that
the stocks went down and and they lost
money, that's not real. Nobody lost any
money unless it stays down and never
goes back up, which has never happened
to the stock market in the history of
the stock market. There's never been a
time when it went down and just kept
going down. Now, if we ever do see that,
that will be, you know, the end of the
United States. But in all likelihood,
there's a temporary uncertainty and
that, you know, things are likely to
adjust. So, I was watching
um I was watching somebody, it doesn't
matter who, just saying, you know, and I
lost all this money in the stock market.
No, you didn't. Not only did you not
lose it, but your percentage of
ownership of the country stayed about
the same. Meaning that if you owned
this, you know, tiny bit of stock, you
owned a tiny bit of the country because
the country is mostly, you know,
corporate wealth. And if everything went
down, you probably own just about the
same percentage of the country as you
owned before. So, it's not as bad as as
it could be.
Um, I haven't sold any stocks. You know,
I'm just going to write it out. I'm not
not terribly worried. Uh, I don't know.
I don't have a estimate of when it will
bounce back. Could be sudden. Could be
any time. I don't know. Could be months,
could be longer. But, uh, what what do
you think about the people in the news
business? I think the people in the news
business uh are not waiting for
manufacturing jobs to come back so they
can get one, but they definitely have
some money in the stock market. If
you're in the news business, you're well
paid and you you probably got a 401k.
So, the people in the news are going to
obsess about the stock market because
that's what affects them.
They're not going to say, "Well, thank
goodness, you know, we have a plan in
place to bring back those good
manufacturing jobs so I can get one of
those and stop being on
MSNBC." No, they're only going to be
worried about the stock because that's
what affects them and it's also what
they understand or they think they
do. So, first thing you need to know is
that Jim Kramer thinks these tariffs are
a terrible idea.
Now, if you spend any time on the
internet, you know that Jim Kramer is
famous for being a contra indication of
what's gonna happen. So, if he thinks
it's a bad idea, might be the best idea
ever. We'll see. Apparently, General
Motors says they're going to
dramatically increase car production in
the US. And that's directly because of
the uh tariffs because it'll make uh
foreign cars more expensive. So GM is
thinking, "Oh, good. We're going to sell
more." Uh likewise, uh Ford is no
likewise, but in addition, Ford is
rolling out, uh what they call employee
pricing. So they're going to allow
anybody to buy a Ford for what would
have been the same price that their
employees could get them. I don't know
how how good a deal that is or not, but
it doesn't doesn't count with some of
their best cars.
uh doesn't count like the Raptor or the
Mustang or the Bronco or the Expedition
or the Navigator or the Superduty
trucks. So, it's not the best offer in
the world, but it'd be great if you're
looking for an ordinary Ford car and you
just want a good price. But I think the
lowhanging fruit here is US companies
that will benefit from the tariff and
already have facilities. So all they
have to do is, you know, increase
production at the existing facilities.
So when you see that kicking in, that's
probably a good
sign. Um, here's
a just so predictable. So Republican uh
Chuck Grassley is working with a farleft
Democrat,
uh, Maria Kwell. Can't well. That sounds
like the the worst name for somebody
who's trying to get something done. Can
you do this? Well, can't
Well, anyway, uh the two of them are
working together in a bipartisan way to
try to wrestle control from Trump about
tariff decisions and make sure it's in
the uh it's in the Congress.
So they want to make some new
legislation that
basically, you know, cod codifies the
fact that Congress is the one who can
raise taxes and decide on tariffs. So
this would be game over. Now, now I
don't know what the odds are that this
gets passed. I think low, probably
pretty low odds that it gets passed, but
this would be terrible. It would be
basically neutering Trump's ability to
negotiate, to do anything useful with
tariffs. But uh there we are, Chuck
Grassley trying to take control of that
for the Congress, which as you know is
worthless according to the Economist
magazine. All right, here we go. Now,
the Economist magazine would be written
by people who really understand
economics. So, whatever their take on
this would be the the smart take, right?
So, they put out a magazine. Uh oh, and
did I mention that they're called The
Economist and they think that magazines
are still a good business
model? That's sort of disqualifying from
being an economist. Uh what's your
business model? Well, we've got a
magazine. Okay. But what they say is
that uh uh this is right on the cover of
their new magazine that Donald Trump has
committed the most profound harmful and
unnecessary economic error in the modern
era. Almost everything he said on
history, economics, and the
technicalities of trade was utterly
deluded.
Um but if you want to hear the counter
to that
uh all-in pod and u entrepreneur Jimoth
Pella Hapata
um commented on that and he called them
a mouthpiece of globalist rhetoric that
is literally always wrong.
So Jamath was uh kind of commenting that
the more the economist hates it, the
more likely it's a good idea. I don't
think he's
wrong. You may have heard that Trump's
getting some push back because
Russia and you North Korea, Cuba, and
Bellarus are not on the tariff list. And
you might say to yourself, "Wait a
minute, is it because he's Putin's
secret
lover that he doesn't want to put him on
there?" But anyway, the White House
clarified that those countries and
Russia in particular are so uh they're
already so uh restricted. So they've got
high tariffs already and all kinds of
sanctions and so there's not any
meaningful trade with those countries. I
think there are some things like potsh
or something that we trade with Russia
but nothing meaningful that uh would be
worthy of derailing any peace
talks. So makes sense they left them
off. Uh China has responded to the
tariffs on them with a reciprocal
tariff. So they matched it with a 34%
tariff uh on imports of all US products
beginning April 10th. So that matches
the the US.
Um is that the beginning of
negotiations? Maybe. We'll
see. Um New York Post is saying that uh
your iPhone could get a lot more
expensive because of the tariffs if they
stayed in place, especially the China
stuff because it would make your your
iPhone be over
$2,000. they
think. Would it? I don't know. And if it
were, maybe Apple would work hard to
bring it to the United States. I don't
know if they could make it cheap enough
in the United States, but maybe that'll
happen. Then the New York Post is
talking about the cost of your buying
your your Air Jordans um shoes that are
made in Vietnam, which is also getting a
big tariff. and that your Air Jordans
that used to cost
$180 might cost $18
more. You know, the the a lot of things
that are optional
purchases. I'm not terribly worried
about an optional purchase expensive
sneaker. Seems like you could live
without one.
Um, the other thing Trump said, which
was
interesting, you remember I told you
that China is unlikely to agree to a Tik
Tok sale because I think they'd want to
see Trump fail and it would be worth a
few billion dollars to do it. Um Trump
hinted that uh without actually
committing to it, he just said it was an
example, but he was clearly hinting that
uh China might want to
negotiate a better tariff situation
uh in return for saying yes to a sale of
Tik Tok to a you know US buyer or a
buyer a team of buyers.
So clearly Trump knows that China saying
yes to any kind of a tick tock sale is
going to be a hard sell and that if you
didn't bring in a completely unrelated
piece of business which is the tariffs,
you probably couldn't get it done. So I
think he he understands that China is
probably a hard no. Even if they lose
billions of dollars, I think that they
would let that go. I think they'd spend
billions to embarrass Trump and make
sure he didn't get their crown jewel
social
app. Um, we'll see. But it's interesting
that Trump did set that up as a
bargaining chip kind of
situation. Well, I saw one theory that
uh Trump's real play with the tariffs is
to lower interest rates.
And the way that would go is that the
the tariffs would scare the stock market
and then people who took their money out
of the stock market wouldn't want it to
be idle. So they would put it in
bonds. And if a lot of people buy bonds
that would lower the interest rate on
bonds because supply and demand. And
then if interest rates come down then
the Fed might lower interest rates. And
then suddenly when we go to
um go to get our debt
refinanced, we would be doing it at a
much friendlier interest rate which
could be tremendously useful to the
country. I don't know that that's the
plan. It's just something that might
happen. So the reason that no economist
knows what's going to go on is there are
way too many moving parts. So, you got
your interest rates and you got well,
here's other stuff. Uh, the Wall Street
Journal, yeah, the Wall Street Journal
is talking about the impact on the value
of the dollar, right? So, you got the
interest rate issue that's hard to
predict. And on top of that, there's the
value of the dollar that's hard to
predict. And there's not even an
agreement about whether a strong dollar
is good for the country or a weak dollar
is good for the country. So economists
can't even decide do we like a strong
dollar or a weak dollar.
Uh but it is likely that the dollar will
weaken if the tariffs stay in place and
it it continues to rile the
market. So that's another thing. Um
then I saw a uh according to spectator
index on X the price of oil went down
4%. Also probably because of the tariffs
but I'm not sure. So if oil goes
down that should trickle into all the
other costs. So you've got the
uncertainty of whether a strong or weak
dollar is good or bad. You've got the
interest rate effect that's
unpredictable. You've got the energy
cost that should lower prices, but would
it be enough to compensate for the rise
in prices? You've got the question of
who's going to
absorb various tariffs? Will it always
be the the importing company or in some
cases, will the exporter absorb some of
it? Then you've got the how long will it
take
um how long will it take to uh get
manufacturing coming back to the United
States? How many how many adjustments
can the industry make quickly? We don't
really know. So the number of unknowns
involved in this are just through the
roof. Um, but one thing's for sure, the
people who know the least about
economics are very certain that they
know a lot about
economics. I think the more you know
about
economics, the less confidence you would
have on which way things are going to
go. Because if it turns out that it's
just a good negotiation, that's going to
be great. You would just get better
deals. If it turns
out, you know, it's going to go some way
that nobody could predict, well,
anything could happen. We'll see. But
here here's what you need to know.
Economics is more art than
science. All right? You you think
economics is more it feels like you it
feels like it's some kind of a hard
science. It's not. It's more of an art.
The second thing you need to know is
that art is
So let's see if you can follow
this. Economics is more art than science
and art is
Economics is largely
You nobody really knows in a
situation like this what's going to
happen. We just really don't know.
Um but we'll act like we do.
So, here's here's something that uh I
saw some of the non-economists talking
about. Um I saw somebody saying that the
reason they're mad at uh at Musk is that
he and Trump don't pay federal income
taxes. What do you think of
that? That Musk and Trump don't pay
federal income taxes. Therefore, they're
they're sort of parasites on the system.
Well, here's what you need to know.
First of all, I think it's not true. I
think Musk has actually paid more
federal income taxes than any living
human. It's just that it depends on the
year. So, he's had one or two years
where he had enormous payments because
of the financial situation and then some
years where it was zero.
Uh Trump of course as as we all know has
found ways to avoid taxes wherever he
can because he's in the building you
know construction real estate business
and the tax law is sort of designed to
encourage that kind of a business. So
here's what I would
say. The reason that anybody can avoid
taxes, be it Musk in some cases and
Trump in some cases, is that the
government wants this situation. They
would rather promote the growth and the
success of a gigantic
business than they need specific taxes
from that business as it's young. Now
think about all of the the federal
income taxes that are created by having
a gigantic company with lots of
employees. All the employees are paying
federal taxes. The the businesses
themselves probably have enormous uh
property tax burden on them which is a
state state tax but still it's part of
you know the productive uh taxation of
the citizens.
um they create things that have sales
tax associated. Again, it's not federal,
but it's, you know, adding to the
system. And if you add together all the
all the sales tax, property tax,
employee taxes, and then the employment
itself, and the fact that if people are
employed, the government doesn't have to
take care of them, the benefit that
anybody with a large business that's
successful is adding to the country is
so
great that the government is okay with
you not paying federal income tax every
single year if you're investing money
into your company and that's that's why
you're not paying taxes.
So the people who know the least just
say, "Oh, they're not paying federal
income tax, so that's unfair. The
billionaires are taking our money."
That's not really what's
happening. All right, so here's my big
worry about the tariffs.
Do we have enough of a
runway that we'll know if they're
working before
midterms? Because if the economy is
still royal the way it
is, the Republicans are going to get
wiped out in the
midterms. And there's not really much
time between now and the midterms for
tariffs to do their magic. you know, not
a lot of people are going to be
reshoring their
manufacturing.
So, I feel
like Trump is is risking it
all. Now, I think he had to because the
current situation was un, you know, was
untenable. So, it's the right thing for
the country that he's taken this risk. I
think um you know we don't know how it's
going to turn out but I think it's the
right kind of risk at exactly the right
time to do it. But if it doesn't make
the public think it's working by the
midterms, Republicans are going to get
destroyed and then it's all gone. You're
going to lose everything politically.
You're going to lose everything. And
then it could get worse because if this
was the only thing that was going to
allow us to balance the budget and have
some kind of a, you know, strong economy
going forward and the Democrats take it
away, which they will because they're
not going to just let it ride.
Um I this is a really
big this is a really big
risk but again I would rather that he
takes the real risk to really help the
country than to do something that would
be purely political which is you know
paper over it and pretend it's not a
problem that things aren't going right
anyway. So worry about the midterms.
Matt Taibbe, journalist Matt Taiibbe is
suing a Democratic lawmaker for $10
million
um because she made the mistake of
saying something on social media that
she had said in the context of her job.
If she said something in the context of
her job, apparently you can't sue her.
but she made the mistake of putting it
on social media and I guess that opened
the door for him to sue. And she made
allegations that apparently are
thoroughly debunked. I'm not even going
to mention them because, you know, I
don't want to put it in your head, but
go Taiibbe. Yeah. I mean, he he was
unfairly accused of something that
didn't pan out whatsoever in in the
past. And this uh Democratic California
representative Sydney Kim Leger Dove
uh just decided to, you know, empty the
barrel. Is that a thing? Um and just
totally trash him in in a public way,
including on social media. So yes, she
needs to be completely put out of
business. I I hope he succeeds.
Uh, I saw in a Mario and a recap of the
news that the hoodies have shot down a
number of drones now. And our drones
cost $30 million a piece, the good ones,
the Reaper drones. And they've shot down
three of them. Uh, two recently just
this week. So, we've lost 17 of them
over time, and each one cost $30
million. So, they've managed to cost us
$500
million worth of just drones they shot
down in the last six months. Now, here's
my question. What kind of technology do
the Hoodies have that they can so
successfully shoot down our drones? I
mean, you know, maybe they miss nine out
of 10 times. I don't know. But they must
have some pretty serious equipment over
there that they can spot it and then get
to it.
So, I don't know how long it's going to
take for us to suppress the hoodies, but
looks like it could be a while. All
right, I'm going to claim um I'm going
to claim the best
predictor of what's happening in Gaza.
Now, those of you who've been watching
me for a while, you have to either back
me or disagree with me on this. I I'll
tell you the current news and then you
tell me, was I the best predictor of
what would happen with Israel and Gaza.
Now, if you're new to me, uh I need to
clarify that I do not support
Israel. I observe it and I observe that
they seem to have the power and they're
using it. If the if the other side had
the power, they would be using it.
So, I'm not putting an ethical or
moral label on any of this, and I'm not
saying what they should do or what they
shouldn't do. I'm just telling you what
they're
doing. And one of the things I predicted
was they were never going to let the um
Gazins move back into Gaza and that they
would have to depopulate it and
just move people somewhere else or keep
them in camps or something. And it looks
like that's exactly what's happening. So
the biggest mass displacement of the war
so far, Israel is calling it creating
security zones, but one assumes the
security zones will, you know, grow to
the entire thing. and they plan to be
more aggressive for a year, but Hamas
apparently has offered to release all
the remaining hostages in exchange for a
permanent
ceasefire, which
suggests that Hamas knows that Israel's
real aim is to depopulate the area, kill
every member of Hamas, even if it costs
them their hostages.
Now, I don't think the Israel is going
to stop just because they have a chance
to get the hostages back. They might
keep negotiating, but they're done with
Hamas. Hamas will be trapped and
destroyed in their tunnels, and I don't
think there's any way around it. And uh
eventually Gaza will be just, you know,
owned and owned and operated by Israel.
And I believe I'm the only person who
told you that from the jump. Can you
confirm or deny that that's true? I saw
no other commentator say from from the
very
first the Palestinians are not going to
be living in Gaza when this is done. Now
part of it is that Israel used the term
total
victory and you know they said things
like
uh it will never be the same. Now, when
you hear total victory and you hear it
will never be the same there, what did
you think was going to
happen? Because if all they did was
fight for a while and then say, "All
right, let's try living together again,
would that be total victory?" No. No.
That wouldn't even be anything. Um
if if they had negotiated for the
hostages and then said, "All right, we
we promised we'd get our hostages back,
so now you can keep on living and Hamas,
you can keep on running Gaza." That's
not really total a victory, is it? It's
not even close. It's It's more like
losing. So yes, there's really no chance
that the Palestinians will be going back
to Gaza and living there. Now again, if
you're new, I'm not saying that's good
or bad or moral or ethical or not.
That's up to you. Make up your own
decisions. I'm just predicting. And and
I'm saying that if you were in that
situation, what would you do? If the
situation were reversed, what would
Hamas do? This. They would do this.
Everybody in this
situation would end up defaulting to
this because everything else doesn't
make sense at all.
And uh you know the United States is
kind of distracted at the moment. So if
we had an impulse to try to stop Israel
from doing what it's doing, I don't
think this would be the time we'd use
it. So that looks like what's going to
happen. And that ladies and gentlemen
are my comments for today. I'm going to
make a few comments privately to the
locals subscribers, but for the rest of
you, uh, thanks for joining on YouTube
and X and Rumble. And I'll see you again
tomorrow. Same time, same place. And
locals coming at you privately in 30
seconds.