America's Greatest Challenge: $35 TRILLION DEBT CRISIS

Summary

The transcript discusses Biden's proposed budget for 2025, highlighting an 18% increase from 2023 and a projected deficit of 1.78 trillion. It emphasizes the growth in national debt and interest payments, suggesting that addressing entitlements, defense spending, and taxation is critical. The conversation points to the challenges of managing federal spending and the impact on the economy, proposing potential areas for savings and the need for a multi-decade effort to change the dependency on federal spending.

Takeaways

• 📈 Biden's proposed budget for fiscal 2025 is $7.3 trillion, marking an 18% increase from 2023.
• 💰 The projected deficit for 2025 is $1.78 trillion, averaging a yearly deficit of $1.6 trillion over the next decade.
• 📊 National debt is currently at $34.5 trillion, with interest payments on the debt set to increase significantly.
• 🔄 The budget highlights a need for conversation on both spending cuts and revenue increases through taxation.
• 💸 Defense spending has grown modestly, while entitlements, interest payments, and non-defense spending have surged.
• 💊 Potential savings could come from changes in Medicare reimbursements for chronic disease treatments.
• 🛰 Shifts in defense spending towards unmanned vehicles and cyber initiatives could lead to significant savings.
• 📉 Economic studies suggest that increasing taxation beyond 20% of GDP can lead to negative GDP growth.
• 🚨 The current economic model is heavily dependent on federal spending, with a large portion of the labor force directly employed by or benefiting from the government.
• 🏦 Strategies to address the budget deficit include freezing federal spending and reevaluating entitlement programs.
• 🌐 Countries with higher debt-to-GDP ratios have not necessarily faced economic failure, suggesting a complex relationship between debt and economic performance.

Q & A

What was the proposed budget for fiscal 2025?

The proposed budget for fiscal 2025 was 7.3 trillion dollars.

How does the proposed budget for 2025 compare to the budgets from 2005 and 2015 in terms of defense spending?

Defense spending has grown modestly during the period from 2005 to 2025, but entitlements, interest payments, and non-defense spending have increased significantly.

What is the projected deficit for fiscal 2025?

The projected deficit for fiscal 2025 is 1.78 trillion dollars, which is similar to the deficits experienced in 2023 and 2024.

What is the current national debt of the United States?

The current national debt of the United States is approximately 34.5 trillion dollars.

How much interest will the US owe on its debt in the next fiscal year?

The US will owe 965 billion dollars in interest on its debt in the next fiscal year, which is 65 billion dollars more than the proposed defense budget.

What is the projected average deficit per year over the next decade?

The budget projects an average deficit of 1.6 trillion dollars per year over the next decade.

What are some potential areas for budget savings?

Potential areas for budget savings include changes in Medicare reimbursement for certain drugs, and a shift in defense spending towards unmanned vehicles and cyber defense, which could save between 500 billion to a trillion dollars.

What is the concern regarding increasing taxation levels?

The concern is that when taxation levels increase north of 20% of GDP, GDP growth can go negative, leading to a spiraling problem where government spending needs to increase to support economic growth, creating a dependency on government spending for economic stimulation.

What was the government's spending as a percent of GDP during the Clinton surplus years?

During the Clinton surplus years, government spending as a percent of GDP was around 18.8%.

How has the spending level changed since the 2008 financial crisis?

Since the 2008 financial crisis, spending levels have increased significantly, reaching up to 25-30% of GDP during the COVID-19 pandemic, and while it is starting to come down, it remains higher than the pre-crisis levels.

What is the proposed solution to control the budget deficit?

One proposed solution is to freeze federal spending at its current levels until the federal net outlays as a percent of GDP decrease to 20%.

What is the projected population growth for the United States by the end of the century?

By the end of the century, the United States is projected to have a population of around 400 million individuals.

Outlines

00:00

📊 Fiscal Analysis of Biden's 2025 Proposed Budget

The paragraph discusses the details of President Biden's proposed budget for 2025, highlighting the total amount of $7.3 trillion, an 18% increase from the 2023 projected deficit. It compares this budget with those from 2005 and 2015, noting the modest growth in defense spending, while entitlements, interest payments, and non-defense spending have seen a significant increase. The discussion also touches on the national debt, which stands at 34.5 trillion, and the projected average deficit of 1.6 trillion per year over the next decade. The paragraph emphasizes the need for alternative solutions due to the difficulty in cutting expenses, suggesting a conversation around revenues and taxation.

05:00

💰 Addressing the Dependency on Federal Spending

This paragraph delves into the challenges of addressing federal spending, emphasizing the need to freeze spending rather than increase it. It highlights the increase in spending during the COVID-19 pandemic and suggests that the current spending level is unsustainable. The discussion includes statistics on the number of Americans employed by the federal government and those benefiting from it, suggesting a significant dependency on federal spending. The paragraph also touches on the idea of a dedicated multi-decade effort to unwind this dependency, expressing concern over the shift from a lightweight overseeing organization to a more dominant economic player.

10:02

🚨 The Impact of Federal Spending on the Economy

The focus of this paragraph is on the impact of federal spending on the economy, discussing the idea of a ceiling on how much can be extracted from an economy, suggesting a cap on federal spending at 20% of GDP. It explores the concept of an optimal tax code to achieve this target revenue and the historical context of tax rates and government receipts as a percentage of GDP. The paragraph also addresses the issue of special interests influencing federal spending and the lack of productive economic value created by certain types of federal spending, such as defense contracts.

15:03

📈 Economic Dependency and the Future of Social Security

This paragraph examines the economic dependency on federal spending, particularly in areas such as housing, healthcare, and education. It discusses the inflationary effects of government subsidies in these sectors and the need for reform. The conversation turns to the future of Social Security, with suggestions on adjusting retirement age and benefits, and encouraging earlier participation in savings programs like 401(k)s. The paragraph also mentions the distribution of wealth and the potential for individuals to opt-out of Social Security if they do not require it.

20:04

🎁 Robin Hood's Incentives and Generosity in High Stakes

The final paragraph shifts focus to discuss incentives in financial services, specifically highlighting a promotional offer by Robin Hood. It mentions a gold card promotion and the company's strategy to provide a full suite of financial services. The conversation also includes anecdotes about generosity in high-stakes poker games and the culture of tipping in various settings, emphasizing the human aspect of financial interactions.

Keywords

💡Budget

A budget is a financial plan that allocates resources for spending, saving, and investing over a specified period. In the context of the video, it refers to the proposed budget for fiscal 2025, highlighting the increase in spending and projected deficit, which is a major point of discussion throughout the transcript.

💡Deficit

A deficit occurs when a government's expenditures exceed its revenues, resulting in the need to borrow money to cover the shortfall. In the video, the projected deficit of 1.78 trillion is a significant concern, as it indicates the growing national debt and the sustainability of fiscal policies.

💡National Debt

National debt is the total amount of money that a government has borrowed, including interest, over the years to finance its operations when tax revenues are insufficient. The transcript mentions the national debt reaching 34.5 trillion, which is a critical issue as it affects the country's financial health and creditworthiness.

💡Entitlements

Entitlements refer to government-sponsored programs that provide benefits to individuals based on eligibility criteria, such as age, income, or disability. In the video, entitlements are highlighted as a significant area of spending that has grown substantially and contributes to the budget deficit.

💡Interest Payments

Interest payments are the cost a government pays to service its debt, including the principal and the interest on bonds and other loans. The video script emphasizes the growing interest payments on the national debt, which are expected to surpass 1 trillion, indicating a heavy financial burden on the government.

💡Taxation

Taxation is the process by which the government collects money from individuals and businesses to fund public services and infrastructure. In the video, taxation is discussed as a potential solution to address the budget deficit, with the speakers debating the optimal tax levels and their impact on economic growth.

💡GDP

Gross Domestic Product (GDP) is the total monetary or market value of all the goods and services produced within a country's borders in a specific time period. The video discusses the relationship between taxation, spending, and GDP, emphasizing the historical data that suggests a maximum extraction rate of 20% of GDP for federal revenues.

💡Federal Spending

Federal spending refers to the expenditure by the national government on various programs, services, and initiatives. The transcript highlights the increase in federal spending, particularly in areas like healthcare, education, and defense, and the impact of this spending on the economy and the dependency on government for employment and benefits.

💡Special Interests

Special interests are groups or individuals that seek to influence public policy and decision-making for their own benefit. In the video, the term is used to describe entities that benefit from federal spending and lobby for continued or increased government spending, which the speakers argue contributes to the fiscal challenges faced by the country.

💡Economic Growth

Economic growth refers to the increase in the production of goods and services in an economy over time, typically measured by the increase in GDP. The speakers in the video debate how government taxation and spending policies can impact economic growth, with a focus on the balance between stimulating the economy and maintaining fiscal responsibility.

💡Dependency

Dependency in this context refers to the reliance of individuals, businesses, or the economy as a whole on government spending and programs. The video discusses the growing dependency on federal spending and its implications for the labor force, the economy, and the long-term sustainability of such dependency.

Highlights

Biden's proposed budget for 2025 is $7.3 trillion, an 18% increase from 2023.

The 2025 budget projects an average deficit of $1.6 trillion per year over the next decade.

The national debt is currently at $34.5 trillion.

Defense spending has modestly increased, while entitlements, interest payments, and non-defense spending have significantly jumped.

The US will owe $965 billion in interest on its debt next year, which is $65 billion more than the proposed defense budget.

By 2026, the US is projected to surpass $1 trillion in interest owed on its debt.

There is a need to discuss alternatives to address the areas of spending that continue to grow uncontrollably.

The conversation may need to shift towards revenues and taxation to address the budget deficit.

Economic studies show that increasing taxation levels beyond 20% of GDP can lead to negative GDP growth.

Federal spending as a percent of GDP was around 18.8% during the Clinton surplus years.

During the COVID-19 pandemic, federal spending increased to 25-30% of GDP.

There are about 3 million Americans directly employed by the federal government.

Federal spending flowing into the economy is about $3.5 trillion a year.

Approximately 50 million people in the US rely on Social Security.

There are 12 to 20 million people in the US paying more than a 50% tax rate.

Federal spending levels have created a significant dependency on the government for a large portion of the labor force.

The federal government has become the primary customer or employer for much of the labor force in the United States.

There is a need for a multi-decade effort to unwind the deep dependency on federal spending.

Federal receipts as a percent of GDP have historically not gone above 20%.

The US debt to GDP ratio is still relatively reasonable compared to other countries.

The US is the only Western country forecasted to grow at reasonable rates above replacement population.

Transcripts

all right so let's break down Biden's

proposed budget of

2025 proposed budget was 7.3 trillion

for fiscal 2025 that starts in October

of 2024 it's up 18% from 2023 projected

deficit 1.78 trillion which is similar

to the deficits we ran in 23 and 24 the

budget projects an average deficit of

1.6 trillion per year over the next

decade national debt as uh freeberg was

alluding to is in say it's at 34.5

trillion but we made some charts here to

go through all of this let's pull up the

first chart and this is comparing

Biden's proposed budget in 2025 with

budgets from 2005 and 2015 defense

spending has actually grown pretty

modestly during that time but

entitlements interest payments and

non-defense spending have jumped

significantly us will owe 965 billion in

interest on its debt next year that's 65

billion more than the pros defense

budget

and in 2026 the US will surpass 1

trillion on interest owed on its debt

and we'll talk about that more in a

minute but let's start here with this

first chart anything jump out to you

chth here that's notable and worth

discussing all the areas that we need to

cut we can't even have a conversation

about so they'll never get cut and

they'll keep

growing so I think that we probably need

to figure out what the alternatives are

so if you can't have a conversation

about expenses the only logical place is

to have a conversation about revenues

and what that means for the government

is in

taxation and so I don't know Jason what

we do

here there could be a couple of saving

Graces so there are some things

happening for example on the Medicare

side that could be profoundly disruptive

they are now I'm not again I'm just

going to put this out there as it's

happening I don't know if it's good or

bad but they are looking at reimbursing

things like wovi and OIC and whatnot if

you look at the underlying costs of

those kinds of chronic diseases diabetes

heart disease

Etc and you put a large swwa of the

American population on those drugs the

reimbursement value of those drugs

versus the cost of actually The Chronic

Care Management would save you many

hundreds of billions of dollars a year

so that's something second is on the

defense side there's a large portion of

that budget that's migrating away from

traditional tactical Warfare to things

that are unmanned vehicles and cyber and

whatnot that could save two or300

billion dollars there so there are

places where you could save 500 billion

to a trillion

dollars but I think it's going to be a

almost impossible conversation and it'll

happen by accident so then the only

forced conversation that I think we are

going to have as a society is around

Taxation and that's really bad

for you know a lot of people that don't

believe that's the path to generating

growth one of the challenges is that

there are and and we should reference

these in the show notes Nick but there

are well researched economic studies

that show that when a government tries

to increase the taxation level north of

20% of GDP of that economy that you

actually see GDP growth go negative that

there's a certain natural equilibrium on

which you can tax the system beyond that

level investment dollars go down and

growth begins to shrink and that's what

triggers the spiraling problem because

then the government spending needs to go

up to continue to grow and support

growth in the economy and it creates

this inevitable totally spiral L would

you call this the Atlas Shrug the Atlas

Shrug effect is investment goes down

there's a Fred chart yeah showing

percent of GDP that's federal tax

receipts and then percent of GDP that's

spending exactly and and then the Gap is

your deficit okay and freeberg is right

that I think in the absolute best

economy or best years of the best

economy so it's like you know the best

year of the Reagan boom and the best

year of the Clinton boom when we had the

government surplus I think the

government was extracting just shy of

20% of

GDP and in the 70s when marginal tax

rates were at 70% so before the rean tax

Cuts we were actually extra extracting a

lower percentage of GDP so there's only

so much blood you can get from a stone

if you raise tax rates on a marginal

basis high enough the economy performs

worse and you actually end up collecting

less or people spend a lot more money on

lawyers and accountants to basically

figure out more structuring schemes to

avoid paying taxes so the years in which

we've got the highest percentage of

Revenue out of the economy are in good

economic years where we've had

reasonable levels of Taxation as opposed

to the highest levels of Taxation and so

the problem is with the spending I mean

we used to be able to keep spending to

somewhere

between i' would say in the best years

of of the years of the Clinton Surplus I

think spending as a percent of GDP was

like

18.8% it's around

20% of GDP goes to federal spending

that's that was normal we but then the

spending got out of control during covid

and it went up to like 25 30% of GDP

went to federal spending it's starting

to come down but it's still way too big

a number anyway my my point is that a

starting point for dealing with next

year's budget is free spending just

freeze spending you know the 18%

increase is not a good idea if we want

to get this problem under control freeze

the spending we can talk about taxation

but you're only going to get so much

blood from a stone an increased spending

is stimulatory and so works well in an

election year I would say we took two

major crises and we had crisis level

spending and then we normalized that

spending and allowed it to carry forward

starting with the 08 financial crisis

with our monetary policy and then being

accelerated with covid and and our

fiscal policy I'll give you guys I I did

some back of the envelope math I'm sure

there are economists who have done a

better job of this than I there are

directly three million Americans that

are directly employed by the federal

government there's 167 million workers

in the US so 3 million are directly

employed by the federal government if

you take the rest of the federal

spending that flows into the economy

it's about three and a half trillion a

year and assume 30% of that Capital goes

to equity holders and businesses that

own businesses that benefit from that

spending and the rest flows through to

labor that's about 133% of GDP flowing

through to labor and assuming average

annual income that's another roughly

4550 million people that are directly

benefiting that are directly earning

income because of federal spending

there's another 50 million people in the

US that rely on Social Security and

here's another important statistic

there's somewhere between 12 and 20

million people in the US that pay more

than

50% tax rate today so those people are

effectively working for the federal

government because half of their their

income goes back to the government so

when you add this all up there's there's

over 100 120 million people in the US

that are directly working for or getting

paid by the federal government in the US

that is such a significant percentage of

our economy that is such a significant

dependency on individual income on a

federal

government it I I don't want to use the

term socialism but the the ability for

us labor to earn is so largely dependent

and largely driven by federal spending

at this point it becomes this critical

Lynch pin to enabling progression

economically to enabling the labor force

to continue to participate that the

federal government is now the primary

customer or employer of most of the

labor force in the United States today

that is a deeply and profoundly

different circumstance than what I think

the founding fathers envisioned when the

federal government was supposed to be

this

lightweight overseeing organization of a

Federated Republic of states and

unfortunately I think we find ourselves

in a condition as Jamal points out

that's very hard to get out of this is

going to require a dedicated multi-

deade effort to create a slow unwinding

from this deep dependency that our labor

force has on federal spending and I I'm

just like so shocked that this isn't the

the critical problem of our day that

we're not all spending time on folks

have pointed out that this only goes one

way at this point hey Nick can you bring

up that first Fred chart this is federal

receipts as percent of GDP and it goes

all the way back to World War II to

freeberg point we've never gone above

20% look at that and we've had tax rates

as high as 90% I'm saying top marginal

tax rates as high as 90% I think after

World War II because we're trying to get

out of the deficit that was created by

the war spending you can't get above 20

yeah exactly the economy shrinks no but

hold on the the I I gave you this oecd

report it says that since 2000 we've

been in the mid 20s and the oecd average

is 34 in terms of tax to GDP tax to GDP

is this this includes state and local

then

right probably yeah yeah I just showed

Federal I think this probably includes

state and local which by the way is a

whole another BWI because I didn't

include those numbers in my employment

statistics the US Bureau of Labor

Statistics estimates that about 20.2

million Americans are employed by local

and state governments directly employed

by local and state government so again

when you add this all up the majority of

the US Labor Force is employed by the

government or is a beneficiary of the

government as the primary customer or is

supported by government entitlement

programs if you go back to that Fred

chart for a second I mean if you if you

basically acknowledge the point that 20%

is the ceiling on how much we can

extract from an Economy based on 80

years of data okay with all sorts of

differing tax schemes then I think what

we should say is that federal spending

will be capped at 20% of GDP yeah we

should you see what I'm saying like if

we can't goove 20% on receipts cap cap

federal spending be a constitutional

amendment right that's it and then and

then on the revenue side we should say

what is the best tax code to achieve

that 18 19 20% because what we do right

now is we just say well just tax the

rich but what we've seen is we've been

taxing the rich as high as 90% in the

past and you didn't get more Revenue so

we should be much more scientific about

saying well given that our Target is

let's say 20% what's the best way to do

that and no one really has that

conversation no none of the

conversations have to do with data or

building a a bulletproof system the same

thing we could say about immigration

where we try to talk about the numbers

here of what's a reasonable number of

people and tying that to an actual

number um and it's pretty obvious we

should have one immigration policy when

we have 5% unemployment and a different

one if we had

God forbid 15 or 20% unemployment can we

just say TI to the unemployment rate the

fundamental structural problem I'm

highlighting is that we've created an

economy that is so deeply dependent on

federal spending that the federal

spending levels are what support so many

employed and so many companies in the US

you're answering your own question

that's why I can't stop right I don't

think the real economy that creates all

the Innovation and all the value and all

the the the good paying jobs I think

that is separate from the deflationary

economy that's the that's the true

market based deflationary economy the

problem is once we've layered in all of

these layers of dependency from federal

dollars flowing into businesses or into

people's pockets it's very difficult to

back out of that I don't call that

dependency I call that special interests

I think there's a lot of special

interests who are basically looting the

federal government and taking all this

money and then they turn around and use

some of it to to donate back to the

politicians and Lobby for more spending

so what you're calling dependency is

really more special interest meaning

that I don't think we need to have this

level of spending in order to have a

successful economy I think it makes our

economy less successful yeah it's still

stimulatory because sax remember Mitch

McConnell when they were talking about

supporting Ukraine his primary argument

as you remember was that all of these

dollars are going to go into defense

contractors Pockets which is going to go

to employees Pockets which is going to

stimulate our economy that's the

fundamental thinking

know but that's the thinking behind it

right I mean that's the political system

that okay let me just walk through this

real quick if the government prints a

bunch of money and hands it to people as

stemy check we all understand that

creates no economic value it just

creates inflation okay now if the

government does the same thing but

instead of a stimy check pays people to

dig holes and fill them back up that's

the exact same thing no economic value

just inflation now let's say the

government pays people to create bombs

that create holes in other countries

exact same thing no economic value for

the country it just creates inflation

here why is that because the only thing

that creates economic value in the

United States is the production of goods

and services that people can actually

consume and use and that they want and

so federal spending on basically make

work projects or things that people

don't really want or they don't use or

even worse bombs that get dropped on

poor people in other countries none of

that creates any value

but I don't think it's a real economic

dependency I think it is just a special

interest that keeps lobbying for all

this St what about housing and health

care and education because those are the

three biggest line items and it's been

inflationary across all three of those

line items in the US economy the federal

government has stepped in to provide

broader access to housing broader access

to healthcare and broader access to

education and in the process that's why

the price goes up yeah you know there's

that famous chart showing inflation by

category and all the categories where

the federal government provid subsidies

the prices have gone up and all the C

healthare and housing and hous the more

the government tries to subsidize it the

more the providers realize a second we

can charge whatever we want govern

there's one customer and they'll always

pay one customer that's got to be

completely reformed yeah here's a chart

of all employees in government and I

think this Fred chart includes all

employees in government which would

include state and local and as you can

see we're yeah that's right it's 20

million local in state 3 million Federal

and then the math I was highlighting was

just my back of the envelope math where

there's 50 million people that are on

Social Security in the US plus if you do

the math on how government spending

flows into employers into employees

pockets it's about another 45 50 million

people that benefit from federal

spending in the US we're already kind of

at a point of maximal dependency if you

will yeah I mean if you look at this

chart we have had 20,000 people working

in government since the late 90s yeah 20

million since the late 90s it's it's now

hitting a peak and the question is you

know how far up does it go from here

it's 23 obviously the country is growing

as well each year so as a percentage we

don't have the percentage but as a

percentage of Americans it hasn't grown

that dramatically but it certainly feels

like this could keep going in the wrong

direction the one thing to keep in mind

from all the

doomsday I would just offer you two data

points the first is that our debt to

GDP either historically but also in

relation to other countries is still

relatively reasonable and what that

basically shows is we have a lot more

debt that we can issue which means that

there's a lot more deficits to run not

saying that it's right yeah before the

great financial crisis it was running at

50 60% our debt as a percentage of GDP

and to your point jamath it's now at 1.2

it's

120% other countries have much higher so

we have a lot more to run yeah so Nick

if you want to just throw that up and so

it means that the countries on the right

haven't failed they haven't done great

necessarily but they haven't failed in

the way that we would Define failure and

it's not as if the countries on the left

are crushing it the way that we would

Define crushing it and so it's not clear

that there's a real correlation between

debt to GDP and the performance over

large longitudinal periods of times as a

country that's the first thing I'll say

the second thing is if you actually look

at all of these countries the thing to

keep in mind is where are populations

growing and shrinking because at a very

basic level jcal you you mentioned this

earlier but when countries are shrinking

there's no fundamental ability to grow

GDP and you're just debating how much it

shrinks and the interesting thing about

the United States is we are the

only Western country that is forecasted

to grow at reasonable rates above our

replacement population and so you know

by the end of this Century we'll be

around 400 400 odd million individuals

and other countries will have been cut

in half and so again there's some

positive news as well now to your

earlier point the problem is politicians

will use this as a reason to continue

spending because they won't be forced to

and that's not a great thing but this is

probably why the status quo would go on

for a very long

time h

so grab the bag get your bag figure

figure out what your figure out what

your thing is I don't know man I just

want people like voters to people to

just they're not going to get your bag

like everybody else problem we have is

if okay Nick can you pull up the the

Fred spending chart we've talked about

this a few times well okay so if you

look there there's a huge Spike because

of Co because of all that covid stimulus

that was air dropped in the economy I

think we're now down to about 22% for

2023 mhm but that that's a big number

you know we talked about how the

absolute Max you can extract is 20% so

what they should do is just freeze

spending until the federal net outlays

as a percent of GDP is down to 20% that

would be the the simplest thing such an

easy solution what's great about it is

it takes out the politicians making this

partisan hey there is a logical amount

of you know taxation we can do before we

freeze up the productivity of the

country which if you talk to anybody

when taxes get high people just start

getting into protecting their wealth I

think you alluded to that with

strategies as opposed to investing the

hard part of it is that I mean look I

think we should do it you know 20% cap

and free spending till we get there the

the hard part is that our interest

expense keeps growing because as our

debt rolls onto more

expensive higher interest bonds than our

interest expensive is increasing just a

few years ago our interest expense was

only 300 billion a year now it's over a

trillion a year and that's just going to

keep growing and growing and then the

other thing that's going to grow is all

the entitlements related to to

demographics so the country's

demographics are getting worse and so

the inment expenses are going to go up

so even holding it to 20% if we could

get there is going to take some work the

L I don't know if you read Larry Fink's

letter from Black Rock it was really

good you talked about you mean his 2030

business plan JL basically yeah it's his

way of extracting value from it but he

did make some sing points in it as

opposed to just him talking his book of

why you should do his retire your

retirement savings with black rock is a

fair point but just getting the what age

do people retire at that discussion we

need to have and we we're not having

that as a country and then what

percentage of benefits do people get at

different how do we incentivize people

to stay in the workforce well at a

minimum don't you agree we should just

allow people to out of Social Security

and in a simple way of saying I don't

need it and I'll take care of myself use

these proceeds for somebody else that

could use it that who has a better need

for absolutely yeah I mean and then

getting people to participate in the

401ks you know at an earlier age and

defaulting those to on as of defaulting

them to off there's a lot of small

behavioral things we could do in this

country to get people saving

earlier wow I uh I saw that Robin Hood

was running a scheme where if you moved

your Roth IRA they gave you 3% cash back

and I thought is there an upper bound

limit on what on how much you could move

over because I wonder if I could I think

you have to keep your money in there for

five years yeah but that's okay I'm just

wondering like will they really write

like a hundred million check if you

MoveOn Robin Hood just sent me something

so we had a portfolio company called X1

which was making a new like credit card

and credit card app it was like awesome

I don't know if you guys used it

anyway they got acquired by Robin Hood

and so the guys here just sent me their

new Robin Hood gold card card yeah this

thing is the heaviest card here just

listen to it drop hold on me tell my

micone don't cut yourself don't cut your

toe

off apparently it's got $1,100 worth of

gold in it I have coming myself and i'

I'm proud to say I've sold no shares of

my Robin Hood I keep all my Robin Hood

shares if my if I move my Roth iral

they'll have to give me the whole

building you give you a goldplated

building actually they they sent it to

me in a uh Louis Vuitton with a Louis

Vuitton wallet this is like unbelievable

yes it's got and look they got a

$50,000 got a $50,000 ad on the got like

a little LV wallet there oh I like there

you have it folks send to Louis Vuitton

wallet get a free $50,000 ad on the Pod

sign up now for your Robin Hood gold

yeah but what is it a credit card yeah

it's a credit card it's a credit card

yeah their their their whole plan was

was always to provide the full Suite of

services do you guys carry credit cards

and

money do you have any money my wallet

but I always carry money you have money

I always carry money yeah like to tip

tip people or something always have some

cashish never you always got to have a

couple of hyy just in case it's a really

bad habit you got to keep a couple of

hyy in the bag you put the 100 on the

outside J account there's a bunch of

ones no we don't do that you get caught

doing that in Brooklyn you get your ass

on the outside no no no no you what we

do is we get rid of the ones the fives

and the tens you just get rid of those

you don't even keep them in circulation

that's that's the best line um I get

cash when I go to Vegas but that's the

time the best line ever was this woman

comes up to Sammy Davis Jr and she says

hey uh C can you um can you can you

break uh you know this whatever amount

of money and he just pulls out a hundred

and gives her a hundred and

she says no no can can you make change

he says that is change baby that is

change that's what he considered change

was the hundy there was a story out of

juu so you know Triton poker yes okay

I'm not gonna say who it is but there's

a guy that was playing the high stakes

cash game and apparently so he lost like

eight million bucks okay he tipped out

450k in 25K chips to like the staff and

like the person giving him a massage and

stuff so it apparently became a

free-for-all trying to get into this

game where everybody was like are we

pulling tips are we pulling tips and

they were like no we're not pulling

tips just Flags he was tipping off Flags

wow that is incredibly incredibly

generous