All-In with Chamath, Jason, Sacks & Friedberg

Industry veterans, degenerate gamblers & besties Chamath Palihapitiya, Jason Calacanis, David Sacks & David Friedberg cover all things economic, tech, political, social & poker.

E64: Antitrust standards & enforcement, tech repricing, lab leak obfuscation, E63 reactions & more

E64: Antitrust standards & enforcement, tech repricing, lab leak obfuscation, E63 reactions & more

Sat, 22 Jan 2022 07:50

00:00 Cold Open

00:25 Besties react to last week’s All-In E63

21:50 Implications of FTC Chair Lina Khan’s approach to enforcing antitrust

42:21 “Superbubble,” Multiple compression, Fed interest rates, Peloton & Netflix valuations

1:11:04 Sacks explains the NIH’s coordinated effort to downplay the lab leak hypothesis

1:32:01 Friedberg’s new company Cana

1:33:47 Learning loss from COVID school closures

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Referenced in the Episode:

Lina Khan interview with Kara Swisher and Andrew Ross Sorkin on CNBC

WSJ article: Sen. Dianne Feinstein & Sen. Alex Padilla advanced the antitrust bill

Chamath’s Social Capital 2019 Annual Letter

Bill Ackman suggests the Fed should raise rate by 50 basis points

Gavin Baker’s Twitter on Generals getting shot last

Jonathan Chait in NY Mag on School Closures

Unicef estimate that COVID-19 learning loss could cost students close to $17 trillion

Friedberg’s interview on This Week in Startups

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Is chamath in a room with his PR crew right now? Like rehearsing and practicing and this pod is ruined? Let your winners ride. Man David. We open sources to the fans and they've just gone crazy. We. Hey everybody. So I just wanted to make sure based on last week's pod was absolutely clear. I care about human rights. Many of you know my origin story, but for those of you that don't. I was born in a country that's no stranger to civil war and religious and political persecution. Growing up, my family and I felt those effects, it affected our safety. It's in part what led my family to file for refugee status and stay in Canada. So this is a real part of my lived experience. That said, you know, I realized that what I said last week lacked empathy, particularly towards others. Who are dealing with persecution, in this case the Uighurs, and based on what I read this week, I think what's happening to them in Western China is. A terrible situation. I also want to talk about this idea about nobody caring. Look, if we take a step back and replace wieger with other really important issues like the conflict in Yemen, the potential war in the Ukraine, gun control, school shootings, healthcare equity. We're faced with horrible events every day. However, the unfortunate state of the world today is that we've also normalized this routine of being confronted with something tragic or horrible or unjust. And being allowed to react with thoughts and prayers. And this was the real intent of what I was trying to get across. So when I talk about my line, it's not about whether something matters or not, it's about which issues of all the important issues we face every day. Where I have the expertise and I believe I have the ability to have a real impact, even if just by a little. For me, those areas happen to be climate change, life sciences and deep tech. But just because this is where I spend my time, it's not to take away from any of the real work any of you are doing in other areas. And then lastly, I just wanted to explain to people who may be new to the pod because of last week. That this is a place where four of us four friends talk about a whole wide range of things. We explore our curiosities. We try to learn from each other, we challenge each other. But we've always done it in a really supportive space, and I hope you keep that in mind as you listen and watch going forward. And hopefully you can you can bring some of that to your own conversations. That's all I have to say. Well said. Sex. I mean, I I know you have something to say, but I'll say I got a lot of messages this past week after the show. Where. Which which I felt a little bit hurt by and mischaracterized. And maybe it was simply I said the wrong thing at the wrong time. Uhm. And so I I want to just be very clear about a couple of points. If I can take a minute. That's alright with you guys. Yeah. So I said I I just wanted to. I was gonna actually send this out on Twitter and I decided it was better just to address it on the pod. So to be clear, I strongly believe in and support absolute freedom of all people. And this means de facto. I strongly disagree with the suppression of free speech, denial of religious freedom, imprisonment, harm, capital punishment, slavery and genocide. I thought this was obvious. And we were having our conversation. I did not know. Clear you're not in favour of genocide. I'm not in favour of genocide. I'm not in favor of slavery or capital punishment or suppression of religious freedom. I thought this was obvious. The conversation I tried to have was the wrong conversation at the wrong time, which was to try to talk about the broader China VUS narrative that is swelling and will continue to swell this decade. I think that the primary function of civilized society or any advanced social system, is to take care of and. Protect those that cannot take care of or protect themselves. And this is usually done by government. But when government fails and government is in fact the oppressor, I think it is the responsibility of other governments and other peoples to step in and have a voice and to take action. And so that is that is kind of my moral framework. I think it's important. I don't deny any of the harm being done to the Uighur population in China. I don't agree with it on a principled basis, and I don't think that the Chinese Government is doing is right. And the point that I was trying to make during our conversation was a very different one that I think got completely lost in the moment. Which was really just about what's going on with the China US narrative right now. I'm not pro China, I'm also not anti China. I am particularly interested in understanding the broader China US dynamic and what it means for the world over the coming decade and decades. I think it's really important for us when we evaluate these things and to understand them, to not just take sides, but to understand the context in the broadest way possible. And that's why I'm trying to get both sides and understand the mindset of the people. That are involved in running these governments and the way that this of this world is going to evolve as this economic tension continues to mount. And so that that's where I was trying to go and I was just trying to highlight where I think everything is headed over the next decade or two, independent of what are obvious human rights issues going on. So let me just stop there and say thanks for letting me say that, but that was important for me to just be really clear on because clearly I wasn't clear last week. So well, and I'll just add to what you said that I also thought it was implied that you care. About these things and that you're not in favor of them. I didn't think that need to be spoken. So I think it's it's nice that you're clarifying it, but I think any reasonable person would understand that if you care deeply as a vegan about factory farming, that you also care about humans and, you know, genocide and torture or whatever issues. So I think it's like a. Your statement is so obvious that I I wonder if you even had to have made it, but I'm glad you did, Sachs. OK. So I guess first I I I should say that. You know, what's happening to the workers in China is indefensible. You've got reports of upwards of a million, you know, of these people being held in detention camps or supports of mass sterilization and rape. It's like ethnic cleansing over there. So that's absolutely wrong. And it's one of a growing list of issues that we have serious problems with China on it, which include theft or intellectual property, cyber espionage, the bullying of their neighbors, their crackdown on dissidents. The list goes on and on. I mean, I think we have to be clear. Lied about the challenge and the threat that China represents, and we've discussed that on this pod many times. That being said, you know what I think we saw this week was really about cancel culture, right? You had, in response to last week's pod, you have this online mob form, and they want to take what Jamas said and interpret in the worst possible light so they can turn the outrage meter up to 11. And everyone gets to basically go on Twitter and virtue signal and say what great people they are. And because truth is a bad person, and I just want to speak to that issue. I mean, there's a huge amount of hypocrisy. Going on in that because how many of the people who are tweeting their outrage and their denunciation of chamath are doing it from a device made by forced labor in China, wearing their Nikes made by forced labor in China, on their way to target to buy cheap goods made in China? How many of those people have actually lifted a finger in the real world to help the weighers? How many of them have sacrificed an economic benefit? In any way. And so when Chammas said nobody cares. I thought it was a really startling statement by him, but if you define caring as doing something more than just virtue signalling and expressing your feelings, as actually making a sacrifice or taking a risk in the real world, I thought he was frankly telling us a very uncomfortable truth. We haven't really, most of us done anything. And in that sense I think the reason why his comments hit such a nerve. I don't think you get the kind of pile on that we got unless. He's saying something that's hitting a nerve and I think the nerve, the thing that he exposed, is that we're not really doing more than virtue signalling on this issue. And then came all the, you know, all the hypocrites. You've got the NBA denouncing him, issuing a statement when what have they done? I mean, when Daryl Morey spoke up on behalf of the protesters in Hong Kong, the NBA shut down and sanctioned him. And, you know, LeBron James said he was uneducated. Actually, I think Joe Moore was pretty educated about what's going on. So you've got those hypocrites. You got the White House issuing a statement disavowing chamath. But Hunter Biden went over to China to manage billions of dollars for them and profited. By his business dealings over there. So there are a bunch of hypocrites and the list goes on and on. And so, you know, I think that if in order for the mob to summon the outrage that it summons, it requires them to, I would say first put the worst possible light on which math is saying and to ignore I'd say the fundamental truth of it. And 2nd, to engage in this massive hypocrisy. And that is the way that cancel culture operates and I don't think we should buy into it. So I appreciate. What? What? Yamas said. I think he's clarifying his remarks. He's showing that he does care and he does have empathy, as we all should. But I think there was a fundamental truth in what Chammas said last week, and that is what people are so uncomfortable with. OK, well said. I have feelings. And most of all, I'm thankful we had the discussion. The goal of this pod, I think what makes it special and why y'all who are listening come here every week, is because, you know, we're going to be honest with you and we're going to tackle these hard discussions and I think friedberg's comments and sacks's comments really. Explain that and what our intent here is and is. Human rights is one of the hardest issues to discuss. That's why you don't hear it being discussed. And there are not easy answers. And I think, you know, I was challenged by my besties on the episode, and there are questions. And their challenges were absolutely critical. Yeah. Yes. How can we care about one group of people when the people in our backyard we're not caring about are we going to invade countries? These are very nuanced, difficult questions, but. We must have this discussion and if we try to cancel people with a 22nd clip that looks completely different. If you look at the two-minute clip or you take the time to have a 40 minute listen of the the whole segment, you get a totally different picture. And I think it's very important to raise awareness about human rights and it is an issue that I have been passionate about my whole life and I'm not trying to virtue signal or score any points here, but I know first hand that raising awareness and having the discussions. Reduces the violations because dictators, despots and people doing this kind of stuff do not want the heat of what happened this past week. And what happened this past week is that more awareness was raised about the Uighurs and the situation that they're going through. I think then, you know, as somebody who's monitored the situation then I've seen in the last couple of years, perhaps this was a tipping point and that is something good that can come out of that discussion now on a personal basis. I have had some feelings of guilt because I. It was very hard for me to watch what happened to chamath this week and to watch people dunking on him. And then, let's face it, I brought the topic up and I dug in with my feelings and it got a little heated and and I'm suddenly being portrayed as, you know, like a hero in this discussion. That's not the intent. And there's there's no hero or villain in this. There is a hard discussion in this and I am extremely proud of my friendship with each of you, especially you chamath. I'm extremely proud of your. Handedness and tackling these issues and making people think about them and you know, I'm just so proud to be friends with each of you and I'm so proud of the work we hear. We do hear every week and I think it's important work and I feel like I get smarter every week and and I hope the audience does too and I hope we can keep having these discussions. And we don't make fun of each other. Yeah. Now let's yeah, make fun of each other. I mean, I don't know if we're allowed to laugh. This is like so serious and heavy. But So what you're saying is thank you, chamath. Now that's gonna be good. For 20 seconds I'm gonna get cancellation of our Jason Calacanis. But Sax's point about, I mean look we've talked about canceled culture a lot on this show and we, you know, we've always been I think generally able to be third party observers. So what's happened and it was really interesting to go through the cycle this week. Where, you know, there was just kind of a an echoing narrative on one thing that was said with One Direction. There were a few pieces, though, Chamath, right. I mean, it wasn't there a piece from the Atlantic and some other pieces that kind of highlighted that things that you said were things that a lot of people won't say. And that's what was really so shocking for so many people. What's the Peter Thiel comment on this whole, on all of this stuff? He said, if if no one's saying it, it's probably true. Or if you're not allowed to say it, it's probably true. Yeah, if you're not allowed to say it, yeah. But yeah, it was, it was really think based on the the mob that formed. And, you know, it's already kind of blown over and that's the way this kind of canceled culture starts. But for that sort of that white hot, really intense day or two, you would think that, like Chamath had practiced genocide himself. You know it it you know, because everybody comes out and the way that they make themselves feel better is by virtue signaling on this issue. And again, I would just say that I think we should be thinking about what do we do? You know, how do we actually make a difference? Because I don't think just virtuously on the issue is is gonna do it. Umm. And you know, at the same time that this mob was forming against ramoth, we had a 2 hour Biden press conference in which Biden never mentioned the weighers once, the press Corps never mentioned the Uighurs once. So does that mean that wiggers are below their line? You know, why wasn't it mentioned? You know, shouldn't we be ganging up on Biden? What? Why is it, you know, why is the press ganging up on chamath when they're not ganging up on Biden for that? So there is a fair amount of hypocrisy here. I actually think, Jason, I think you make an excellent point that by discussing these issues and raising these issues, it creates a little bit of a check on the people perpetrating these atrocities because they don't like to be exposed that way. And, you know, maybe we should be boycotting the Beijing Olympics. I mean, maybe that should be on the table. Maybe we should be boycotting the NBA. I mean, let's have that conversation. Yeah, or maybe everybody who goes there. I wouldn't want to see the athletes miss the Olympics, but maybe they could each just raise their hand and and do a you or some sort of a signal to show they support the situation or they're aware of it. With the Uyghurs, there could be some, you know, modest protest or statement they could make without ruining, you know, their lives. Work. I always hate when the Olympics get cancelled for some political reason because I think those people work so hard for it. But. Raising awareness, you know, is a noble goal in all of this, and then also doing things is a noble goal. And yeah, I mean, I it was very weird to watch the the mob form and then dissipate and and just who was, you know, taking the time to actually listen to the full episodes. It was clear from that Atlantic article and some of the nuance takes that they listened to the full discussion because there are bullet points here like. Like there was somebody asked me a very challenging question. I think it might have been freberg like, are we going to start invading countries over human rights? And then there's more suffering and death and pain from the wars and and and when do you decide as the the democracies of the world to invade the dictatorships of the world to. Promote human rights like this is a very difficult issue that the world has had to deal with, sadly, before, and there is no easy answer there. You know, I I think that this is a point that I also tried to make on the last episode, like Freeberg did, which is I I think it's, I think it's actually great to have these ideals and we should have moral clarity about what's happening. And I think it what's happening is wrong. It's outrageous. It's an atrocity. But but the question is what we do about it. And and and the the the reality is, even though it's important to speak out about human rights, these types of fulminations about human rights, when they become this sort of, you know, when when people, when we get into this like frenzy. It's been the prelude and pretext for every misguided foreign intervention that we've had over the last 20 years. And the example. The Iraq war. I mean, Saddam Hussein was suddenly Hitler. Uh, you know, the the goals of nation building Afghanistan for 20 years, our invasion of Libya, we got rid of Gaddafi and we replaced it with chaos. For years we were talking about how evil Battalian and their social system was. And then we just handed Afghanistan back to them a few weeks ago. Exactly. So you know, and and so these types of, you know, when when you kind of you whip people up over human rights. I mean, I agree with the sentiment and I agree with the moral clarity, but I also can't help but recognize that neocons and the military industrial complex and the Washington BLOB have used this type of rhetoric for decades to corral us and Stampede us into wars and foreign interventions that don't make any sense and we all recognize. After the whole project has gone wrong, like Afghanistan, we become suddenly more realistic about the whole thing. And suddenly, you know, we're not talking about, you know, the, the, the, the sort of the moral atrocities of the Taliban anymore. But the discipline is to still there. They're still there. The discipline, though, is to be able to check ourselves before we get into these interventions. And I don't think we do a good job of that. We're whipping ourselves up into these mobs and we're in a frenzy and the the raising awareness is something that. Has been lacking the, you know, certain organizations and I think it's very important that we don't take organizations that have engaged with a country, let's say China or Saudi Arabia. They may have engaged in good faith with the goal of, you know, engagement is a positive for humanity in the world. OK, if we engage with China and we are Co dependent on each other, that will lead to a better arc for human rights and for humanity and less wars because our our economies are entangled and we do business together. OK? This is a a fine premise. What the dictators and despots want you to do is to fight each other and not look at the human rights atrocities. So it's easier for us to say, oh, the NBA, O Apple O you know, pick the the the the company or corporate interest or organization that has engaged. But by raising awareness. Consistently it it gives other people the ability to talk about this. Some organizations weren't willing to even talk about this or say the name Uighurs. And if we keep talking about the Uighurs, the chances that that situation improves. I think there is a chance it does improve. But I do think this like notion that the four of us can get together on a podcast and not get cancelled because, you know, we we don't collect money from advertisers and we started having these conversations amongst friends and we just put it on the Internet. First of all, it's a great kind of reflection of what you can do in the United States with the freedom of speech. We have and we can just put this on the Internet. Anyone can watch it around the world. I don't know how many people are watching it, but mostly the freedom of speech, mostly. Freedom of speech most. But I do think that it's it's pretty valuable and I do think that that's, you know an important point for us is, you know, as much as chamath got completely destroyed this week. You know the I gotta. I gotta say, other than COVID, I'm. I'm feeling pretty good. You feel better? You're pretty bummed for a day or two. I mean, I think the the COVID thing was scary because four of my five kids got it, so I was just like, Oh my God, that's terrible. How's everyone doing, by the way? I'll, I'll be very honest with you. So, uh, between both houses, you know, mine and my ex-wife. Four of the five kids got it. Our nanny got it, Nat did not, and the youngest baby did not. There's a real difference between in my house, how the boys experienced COVID and how the girls experienced COVID. Quite honestly, it like we, you know, we've expressed certain symptoms, specifically a really bad sore throat and a cough. That the girls in her house did not. The girls had more intestinal issues. The boys roughly did not. So it all manifested kind of in odd ways, but got my God. I mean, what a pain in the ***. Well, to be going through that and then also, like, monitoring Twitter and inbound, your phone must have been blowing up, and I wasn't doing any of that. OK, Jason, start the pod. Let's go. All right. Well, OK, everybody, welcome to you all in podcast with us. The Sultan of Science, who's got a new startup he launched. We'll hear about that later in the show. The Rain Man himself. And. There is a. The dictator. I I was like, yeah, it's not like we it's like we didn't warn you. We got a 63 episodes. We called them the dictator. We this was about to happen. That's everything. Show everybody. You guys are like after 20 years of friendship, it's like, I don't know, the list is like 9000 items along. I was like, yeah, I'm gonna cancel and we got a long list. All right, so first up, I think we should start with a duo of stories that relate to each other. Microsoft announced its buying Activision Blizzard for $68 billion of cash. Microsoft's got a lot of cash. And I think we all understand like why this is a great idea for Microsoft. With Xbox, and obviously Activision owns Call of Duty, which has 120 million or so monthly active users. They also own a bunch of nerd stuff from Blizzard, like Diablo, World Warcraft, my favorite StarCraft, and those have upwards of 40 million. They also had bought King, if you remember that they make Candy Crush and those kind of casual games, you have 1/4 of a billion users. But even with all of these, it's a highly fragmented market. But in related news. Alina Khan, the, I believe 32 year old head of the FTC who has written a bunch of pieces we talked about this on all in episode 36, sat down with Kara Swisher and Andrew Ross Sorkin for an interview and basically we're moving or she intends to move the goal posts on antitrust. I want to play three clips and have you each react to them. Here's the first one. And this is her take on changing the antitrust from consumer harm to now. Shift to does this deal, and we'll take the Activision deal here as but one example, but you could take the Instagram and the YouTube deals as well. Do these deals substantially reduce competition in the future? Let's watch the first clip. Certain cases may be too much success, and so the question is, when is the regulator supposed to say this could work? And if it works, it's actually worked too well? It's an interesting question and I think you know for enforcers the the real question is, is this the deal that could lessen competition and in hindsight all deals to some degree, all deals to some degree are gonna lessen competition intially less in competition or tend to create a monopoly. And there's also indication that Congress wanted enforcers not just to act when you know the third and fourth companies are merging are the 1st and 2nd, but actually in the incipiency when you said see trends towards concentration that those can also be important moments for enforcers. To jump in. So what do we think freeberg about this sort of new rubric? Not consumer harm, because obviously if Microsoft buys Activision and makes those part of Game Pass, and you get Call of Duty for free with your Game Pass and the Candy Crush Games and Blizzard games, that's good for consumers. They get a whole bunch of more games. It would be like Disney buying Star Wars. You get all the Star Wars stuff in Disney, plus for the same low price. Yeah, look, saxes are legal eagle here. But I'll just say before, you know, he probably speaks better informed than than me. If it's not about consumer harm and it's about decreasing competition in this broadly, I would argue subjective sense, then what's scary is that there are going to be decisions made by interpreters of what is and isn't competitive. And ultimately, if they're not trying to keep in mind the best interest of the consumer, then it is in fact going to cause consumer harm at some point, not necessarily at all deals that they block. But there will be deals that they may block that may have benefited consumers, meaning prices go down. Imagine having all of your products integrated in one streaming service instead of having to pay for three streaming services. So instead of paying $70.00 across HBO Max and Disney Plus and Netflix, you get everything in one. But today, the regulators would not let those businesses merge because that would be anticompetitive under this context. And so this is going to be a touchy debate and it's going to be difficult, I think ultimately to rationalize this if there is going to be a point in the future where we can. Actually show that consumer harm would be caused by decreasing competition in the marketplace. And so I would be nervous about that subjectivity and the slippery slope it enables. I think it's a great point. Think about it. If you had to pay instead of for Disney plus, you paid for Pixar plus, Disney plus, Marvel plus and Star Wars plus, it'd be chaos in your household to manage all those accounts. It's a much better offering. Better consumer experience. Yeah, much better consumer experience and cheaper. And this actually, by the way, I said, sorry, I'll say This is why I said in the past we used the term monopoly as if it's de facto evil and bad, but not. All monopolies or businesses that have very big moats is another way to kind of describe them are necessarily bad for the customer. You get cheaper product, you get better products, you get more of an advantage. They may ultimately be yielded to be anti competitive and harmful. Let me, let me not necessarily always, but let me explain to you where she's coming from. Like there's a fundamental pillar of capitalism that says that excess returns must get competed away. So if a capitalist system is to be efficient, if a company has profit margins of 99%. Competitors emerge, pushing those profit margins down to something reasonable where you get to some sort of equilibrium. And the whole principle of what she's saying is in, in the absence of competition, we don't really know what the equilibrium. Return really looks like, and she's not saying that, but that is the implicitness of what she's saying. And so in the if you allow all of this stuff to aggregate. Maybe Google shouldn't have 45% EBITA margins. Maybe in a really competitive society they would only have 18%, and that's actually better net net for the system. The problem is that counterfactual, to your point freeberg is impossible to measure. How do you know and how much value do you need to take away of the panoply of things that Google does to figure that out? And that's, I think, where the problem with it. But, you know, let's be clear. In 2019 I wrote in my annual letter there's a section called the the tightening of the regulatory noose and meaning it was a framework for how to basically dismantle big tech. And element number one of that was a changing regulatory landscape and it's really incredible to see it in front of our eyes. We got to build that just left judiciary right that was. Effectively voted across the aisle. That's now going to go to the floor of the Senate, which is going to rewrite some of these antiques like 7525. And it was a 5050 committee of Democrats and Republicans. So clearly across the aisle, clearly across the aisle. And I mean, The funny thing about that was Feinstein and Padilla, the two Democratic senators from California, where most of these companies are. In in the Wall Street Journal article that I read, railed against it, but still voted for it to go to the floor. So it's I think some version of that is gonna pass. She's gonna go and scrutinize these companies. I still think this Microsoft, Activision deal, on balance, gets done, because if you take the absolute values away from it, the reality is that it's an adjacent part of Microsoft's core business. And there's nothing fundamentally monopolistic about what would happen if you let Microsoft and Activision come together. Could it reduce competition in the future? I think would be hard new lens and if Xbox has Call of Duty and Sony PlayStation does it or the next console doesn't maybe it does. You could make the argument sax what are your takes on this very hard to apply standard of reducing future competition because as Aaron Ross Sorkin said very clearly all of these reduced competition it's now we've got to get into what is the word substantially mean in this context. Yeah. So my take on on Leida con is that. He's got some worthwhile observations on the problems posed by these big tech monopolies, but I don't think she's got the right remedies. So on the observations, I think she's correct, broadly speaking, that these big tech companies, the fangs, they have way too much power in the marketplace. There are now gatekeepers over the Internet that control all these powerful platforms. And broadly speaking, it is time, I think, to to basically have some limits on those powers, make sure they don't abuse it. I think she's also right that the traditional standard of consumer harm doesn't really capture that sort of concept of market power for these free ad based services, right, because there is no pricing. And furthermore, I think she's got a point when she says that, you know, you know pricing, you mean Facebook and Google Consumer doesn't pay, so how can there be consumer harm, right. So clearly that there's that, that standard of consumer harm doesn't really capture the market power dynamic. And then I think the the last observation she makes, which I think is pretty. Pretty valid is this idea that, you know, when Facebook bought Instagram, at that time it didn't seem to be a problem, but it definitely allowed them to extend their monopoly from the desktop into mobile, and it probably should be scrutinized harder. My problem is with her remedies. I mean, what she's basically saying is, first of all, like you said, any deal that could decrease competition in the future is a problem. Well, the whole goal of business and making business moves like an acquisition is to build your Moat. Is to is to when creating a more competitive offering. So there's no limiting factor. There's no bright line test there. At least with consumer harm. There's a bright line test, which is about pricing, right. It's mathematically measurable. You could create a model around it here. There's absolutely nothing. And So what it's going to do is completely politicize the process of getting an M and a deal approved. And you can see this when she's talking about the impact on labor. I mean, this is a total soft to the. Let's say this is a total SOP to the Labour constituency in the Democratic Party. Because look, Facebook and Google, no matter how powerful monopolies they may be, they don't have a dominant position in the labor market. It's just not true. They're competing for the same engineers at every tech companies competing for. So she's bringing a purely political consideration in now. And so again, there's no bright line rule. It's going to be heavily political companies trying to get a merger approval never know whether they're good or not, and even after they get approved, they'll never know they're good. And I have a big problem with her. Saying that any deal that they approve can be reopened and reevaluated a decade into the future and reverse the actions they're taking. Companies need certainty. That's the, that's the real issue. It's the the rules of capitalism have been that the smarter slash, more strategic, you know, entity. If they can run their plays more efficiently, has the right to win. UM, this is almost trying to say actually, not really. And that is very problematic. And so you never know you're good, you're never know you never know you're good. And then the problem that it'll create in the equity market specifically is, OK, how do you actually Dr shareholder returns? And then what do all these shareholders then do if these companies are rendered to basically stay where they are? So you're breaking up shot, I mean you take a snapshot of the economy and you say this was what it will be from now on. But it's it's axis point is really interesting. It's gonna require M&A to become kind of a political maneuvering process similar you know, create sort of these you know, obfuscated gates where you don't really know what it's going to take to get through there. And then you've got to go do what you do when you try and convince foreign governments to work with you or allow you to do a transaction in the foreign government in a foreign country where you got to go in and you gotta go figure out the politicians, who they want, who they are, what they want and then put together a political consortium that's going to approve the deal. Given that there's now going to be subjective, uh you know validation whereas before I think the the the criteria were were much more objective. Let me play this other clip. This is the clip that Sax was referencing. Lena Kott also talks about how labor unions are trying to get in on the action. Slash Griff see on the other side of this research has showed that labor markets are significantly concentrated and it's led to, you know additional thinking at the policy level of how this should be affecting. Antitrust enforcers are doing so. The Justice Department, including in the last administration, started looking at no poach agreements more closely, instances in which employers may be colluding to suppress wages. Both agencies have been looking at the ways in which mergers, in particular, may lessen competition for labour and have downstream effects on workers in ways that are harmful and that also needs to be on our radar. So I think this is an ongoing conversation, but increasingly the question is, you know. How we implement some of these priorities and not, you know, whether they're important, but this is the first time you've included labour. This is something labours wanted for a long time, the idea of looking at antitrust through the lens of unemployment, essentially. Yeah, there's an interesting history here. I mean you know there were cases in which you know unions were supportive or transactions because they thought they would lead to more downstream benefits. But I think we started to see through retrospective studies instances in which you know mergers actually ended up having a harmful effect. And so I think that is what's significantly contributing to this. This is, this is also part of what I said in 2019. The third element of that plan was you have to change the rules on stock based compensation. So instead of her talking about it as labor, I think the. The more accurate way to say it is like there's very valuable human capital in technology business. A few people have, you know, discontinuous impact on these businesses and it has been a stated strategy of all of big tech to use their balance sheets to buy small companies. In their incipiency, to use her words, not because it helps advantage their monopoly, but it prevents the leakage of human capital into other ideas, and it prevents those other ideas from really flourishing. That's really what's been happening for years in Silicon Valley, and we all know that. You know, all the Aqua hiring we see is about hoarding talent, and you'd rather pay these people millions of dollars a year if you're a big tech to basically work on next to nothing, then take the risk of them going across the street to a competitor. And then having them build starting disruption and and this was such a, this is such a no, the only way, but the sorry just to finish the old one of the ways that you can change it is you have to change the way that stock based compensation works, how it's accounted for, you know how you can actually deal with it on a GAAP basis, how capitalists then treat that in terms of their earnings. If you don't do that none of the models change, people look past it, people look through it, they don't think it's a real cost, which it is. And then you're allowed to continue to do it. That's really the underlying issue. So much so chamath that the human, the hoarding of human capital was a reoccurring theme on the Silicon Valley HBO show where people in Hooley were getting paid millions of dollars and hanging out on the roof. Freeberg, when you look at this human capital labor bringing brought into it, isn't the point of a lot of M&A to eliminate jobs and eliminate redundancy? So if you brought in YouTube at Google, I'm not sure if you were there at that time. The distinct concept was, hey, we already have an advanced ad network, we already have accounting and we already have servers around the world in storage. You don't need to hire those people. We can get rid of them or whatever and we get rid of that redundancy scale, large scale consolidation, that's certainly true. Most M&A and technology is the opposite, where an acquisition takes place and the acquisition gets fueled by further investment after the acquisition is made. When YouTube was acquired, there was a few dozen employees there. And then very quickly, Google scaled back team, the engineering team, the infrastructure team, they even had their own independent ad sales team to thousands of employees. And without that, it would have been very difficult for YouTube to achieve that scale, both from a product success perspective, an infrastructure perspective, but also an employee based perspective. With the amount of capital it would have taken to go and raise that from venture capital. It's maybe nowadays where there's billions of dollars floating around, it would be different. But back then it would have been very hard. And so what's the same for WhatsApp and Instagram? Exactly. WhatsApp was 19 people when it was acquired and now it's thousands I'm certain and and Instagrams the same. And So what we've seen traditionally or not traditionally but over the last 10-15 years with Internet based acquisitions is not about consolidation and reduction in cost, but about taking and enabling technology and accelerating it on an existing platform. Now number one, it makes that new technology or product far more successful, far more far reaching and more consumers benefit from it. #2 is it now makes that platform harder to compete with. So as a. Platform, it's going to be a lot harder to catch up with the cash flows being generated at Google and Facebook given how quickly they reinvest that capital in new technology to further their advancement. To your point, yeah, but but I would say what, what's, what's been so significant over the past 15 years that people are lifting their head up is that it has been both beneficial to consumers and anti competitive. So that was exactly what I was going to get to here. Your YouTube example is the perfect one because if you look at YouTube, think about all the joy education. Communication it has created on a global basis as a juggernaut. Free? Yeah, and it's free. That is helps humanity so much in this new lens. But no one else can make a video ad site like this. Yeah, exactly. So they're now looking at all the benefit that YouTube has created for humanity versus the fact that it's going to be impossible to displace YouTube. Now, to your point, sacks, how do you get past the bright line? Do you have a suggestion for a way? And would you now look at something like YouTube and say we shouldn't have allowed that to happen? YouTube was on death's door because of the lawsuits and the server bills. We all know that, right? Well, this is the uncertainty that's going to be created. And I think this administration's creating tremendous business uncertainty. I think the reaction of a lot of big tech companies is going to be to stop doing M&A until the situation gets clarified because they just don't know. You know, targets are target. Companies are going to want to have huge breakup fees, and it's just kind of a chilling effect on the market for M&AI mean business needs certainty and they're not giving it in this business environment. Turn off before we get to you. Just kind of make one point about that last clip on, on the labor point. Listen, this feels to me just like when the administration talked about clean tech and clean energy and electric vehicles, but then they only gave the subsidy to the car companies that were that were basically union shops and so give the same. That's right, they excluded Tesla, they excluded tests from the V somewhere they tried to pretend that Ford and GM were the ones driving the EV revolution in the US. It was laughable what they were trying to do there is there were shoehorning a Union agenda. Into clean tech. And I think that's what Lena Horne is doing in that clip. She was shoehorning a union agenda into antitrust law. And it's a bit absurd because Facebook and Google, even though they are very powerful companies when it comes to talent, they are in a war for talent just like everybody else. They compete against you there. These are not factors are not mistreated employees. These are very well paid employees. And moreover, the market is highly competitive and we don't need them trying to insert this Union agenda into antitrust law. You got to think that. For example, going back to Microsoft, Activision. Obviously the bankers. Would have called Apple and Facebook and Google as well. I mean, it's absurd that they wouldn't have. Yeah, they refused to be. The minute that you think you have a bona fide offer, one of the things you have to do is essentially, you know, get an opinion letter and also to make sure that as a public market shareholder, you can justify that you've evaluated all the other options. Right. Sure. But it's really quite telling to David's point. I don't think that if you were Facebook or Google or Apple, you could have credibly made an offer because the calculus in the back of your head. It's not whether it had business logic, but whether you could actually get it through the FTC. But Microsoft did, because Microsoft is no longer seen as a threat. And look, we said this this in our awards show two or three episodes ago. You know, they have really been the most untouched in the last decade by antitrust scrutiny, whether it domestically or internationally. They've largely skated under the radar after paying the price for an entire decade. I think a lot of that has to do with the fact that Microsoft's. Effectively pivoted, with the exception of this gaming, into being an enterprise software company. And the politicians just care a lot less about enterprise software. It doesn't capture the public's imagination. It's the big consumer, you know, companies that get all of that attention. That's the fascinating point. Like literally the consumer and the bread and circuses of this is what's driving it. Like people hate big tech and Trump got banned from it, yadda yadda. But I got to say, you know these increasing restrictions on big tech and the. These prohibitions and the chilling effect, the uncertainty, it's one thing to do it when the market is just completely ripping and we can sort of afford to run these experiments and tinker with these these rules. But I got to say I'm I'm starting to get pretty worried here that you know we had Jeremy Grantham as sort of an old school yeah old school kind of bearish type market commentator. He had this expression that the. Yeah I mean it's more one of these stop clock right twice a day things here. Jeremy Grantham has never found a market. He didn't, yeah. Yeah exactly. But but but a stop clock can be right twice a day and the the line he had today is we're seeing the popping of a super bubble and you know we've been talking about bubble. Yeah, exactly. Basically that's not that's not true. But I mean it's good. Yeah. Well evocative. Well the the sense in which is it might be true is that, I mean we talked about this last few months is that you had the Fed and the the the federal government pump A10 trillion of liquidity into the market over the past two years because of COVID. Now they're starting to pull that back and there was I think a general asset inflation across asset classes, certain types of assets clearly got more inflated than others. We've seen a huge correction in growth stocks. We've seen a huge correction in in crypto, basically anything long dated as the fear of interest rates increasing has gone up, they've massively corrected. But so the concern is that, you know, with the losses we're seeing and I mean every day it just keeps like you're seeing more red. That this could turn into a recession. You know, popping of bubbles is usually followed by uh by a recessions or so I think, you know, the fortunes of the economy could turn really quickly here and that is that is the marginal risk. The marginal risk is actually for a recession. We, we we talked about this before, by the way, just to your point, you're right that we pumped in $10 trillion. But over the last three weeks and really over the last 2 1/2 months, we have actually eviscerated $10 trillion of value as well. So if you want to measure it. We put 10 trillion of excess capital in, but we've now destroyed $10 trillion of equity across it by lowering the prices or real pricing stuff. Yeah, we've repriced the crypto. I mean, crypto in the last couple of days has just been shellacked. Growth stocks have been shellacked. Biotech stocks have been just absolutely spoken. Everything is getting crushed COVID stocks. But David is saying something really important. The risk, in my opinion, is not. Of runaway inflation anymore. And the reason was what happened this weekend was incredibly important and we have seen this happen just a few years ago, so this weekend. Uh, China cut interest rates now, as we know, we are dealing in the United States with this issue of whether we should raise rates and by how much because we're worried about inflation. Well, if you're cutting rates, it's because you're worried about the other problem, which is that the economy is basically turned over and you need to become more accommodating, right? You need to incentivize businesses to spend by lowering turnover, you mean? It it's slowed down. People are not building companies, not doing new projects. So you want to incite, you want to give them an incentive or or maybe some catalyst to start some new company or start some new project because all the real estate projects have wound down in 2018. Here's exactly what happened. The setup was. The Fed's we were everybody was worried about what the Fed was going to do on interest rates. The Fed was looking at China as the Canary in the coal mine, the leading indicator of what we should do and at the end of 2018. Uh, Jerome Powell decided to raise rates. And we raised rates and then enter 2019 and uh, the Chinese economy turned over and. We realize that there are economy was not nearly as strong as we thought it would be. And so our reaction was disproportionate to what the actual data on the ground said. We entered a recession in 2019. That's when you guys probably saw Trump going crazy blaming Powell. I mean most of us ignored it because, you know, we were all dealing with, you know, Trump Derangement syndrome. But the underlying thing of what he was saying was, hey, hold on a second, you just caused the recession in America by raising too quickly. The Fed is now in this really delicate situation where China cut rates last week. We have an FOMC meeting the Open Markets Committee that sets rates on Wednesday, I think of this coming week. What is he supposed to do? You know Bill Ackman 2 weeks ago was advocating for A50 basis point raise in this meeting. So that's way beyond what people even thought is supposed to. We should just remember that Bill Ackman has bets, macroeconomic bets in the market. If he's calling for a 50 point raise, I guarantee you, you make a lot of, you'll make a lot of money. There's no conflict, no interest. Yeah. But my my only point is the setup is a very complicated one for the Fed coming into this week, and the risk is to a recession. Because if we overcorrect. Yes, and the leading indicators all around the world tell us that their economies are weak, then inflation may have actually been much more transitory than we thought. And right now we have to decide, because if we overcorrect, we're going to plunge the United States economy into a recession. This is why I think, Friedberg, when you look at this, when you have so many different things happening at once and you're trying to pilot a plane or a car, you know, in rain on ice, going really fast, maybe there's something with the brakes and you got to be very delicate with, you know, how you steer into this. What is the right strategy here on a policy basis coming out of Omicron? Should we just take a pause? On raising rates, but what do you think the right situation here, obviously putting a bunch of regulation on top of big, you know mergers and acquisitions and and that's going to create headwinds. I don't know how many different variables we want to add to the mix of an economy that feels like we're in a perfect storm. I don't know like a lot of us kind of talk about. The valuation of things in markets as being the economy, but it's not the economy, is the productivity of businesses that are valued in the market. And as long as the productivity of the businesses in the market continues to improve, that businesses continue to grow, that there's stability to pricing that's not run away or or declining, neither inflationary or too deflationary. You know, I think those are the indicators that matter most. Now the reality is over the last couple of years we've had trillions of dollars that have flowed into these markets for free. And those trillions of dollars have created lots of mini asset bubbles. Lots of little new markets have emerged. NFTS, random cryptocurrencies that don't actually do anything, the collectibles market, the art market. There are lots of, I mean there and lots of examples of these speculative early stage businesses that have gone public and people backed them and they they said, look, when there's this much money around, I'm going to start making more risky bets. I'm going to make more speculative bets. And regardless, the money's coming out of the markets, the money's gonna come out one way or another. And as it starts to come out, these little bubbles are the 1st that are gonna pop. And that doesn't necessarily mean that the economy is at risk. It means that there are valuation bubbles that are going to burst, they're going to decline. And no interest rate policy is going to change that. Because the inevitable growth in the underlying economy, the inevitable end to the pandemic, is what's ultimately going to drive capital out of these markets and back into ultimately. More productive assets and less speculative assets. And so this is a transition that I'm not sure you can really kind of manage. I think underlying businesses and the growth of the economy and the ability for people to get jobs, there's an incredible number of open jobs are in the US right now, 3,000,000 open job listings. Go apply for a job at 11 million, whatever it is. Go, go, go sign up for a new job, 3 point, what is it, tax, they're million 3.7% unemployment are not a lot of people. Yeah, they're not a lot of people in the US that don't have an option to go out right now and go improve their their working. Condition. There are a lot of open jobs in the US and salaries have gone up. That's what I mean. You're working condition, you can go make more money and and so, you know the economy underlying, there are lots of great businesses that are growing and doing well and there's stability that's emerging and then there's a bunch that aren't. And they're a bunch that we're always speculative and that they were hyped and overvalued. And you know, as those assets get devalued, a lot of us that have most of our worth and income coming from capital are going to feel the burn too. Questions, by the way that we want to go around the Horn on 1st chamath, if we could do, if each of you could do one thing to one or two things to manage this economic policy in the next year, what would it be like? What two things do you think we should do, David? One or two things would be the top of this that regulators should do in terms of managing this seemingly chaotic situation. Just not do. It just feels to me like we're pinballing from 1 overreaction to another. So we overreacted in terms of flooding the zone with liquidity because of COVID. I mean remember like Druckenmiller, you was like the one of the only voices about a year ago when they did that two, that last $2 trillion stimulus bill, that COVID relief bill. And he said, look, retail is already 15% above trend. Meaning if you looked at demand that the demand side of the economy, it had fully recovered. And was actually above people were spending more money and then we flood the zone with another 2 trillion and then lo and behold six months later we have this inflation and then in response to that inflation we're now jacking up rates so quickly that I think we're risking to Tomas Point or recession. So we're pinballing from 1 overreaction to another and I just the big meta thought I had this week was just how many of our problems are just self-inflicted right now. I mean even on COVID right we could live with this variant of COVID Omicron. You know, chamath and all of our friends, we've everyone I know in the last few weeks basically has had it and it's been very mild. It's basically been a cold. But in large swaths of the country we're not choosing to live with it. We're at each other's throats about these vaccine mandates, these other restrictions and OK, school closures and similarly and and the same thing. Just to make even more local, we've got a crime wave in America going on right now. Why? Because we emptied the jails last year and stop prosecuting. Totally self-inflicted. So what things do we need to do? Just if you had one or two things you think we should do. One, you said we're ping ponging. So you think more consistent policy community. I don't. I think that you want some neat little answer. That's tweetable and there is none. No, it's. I wanted you. I mean, let me explain that. There was a good idea there. There. There is no one or two things anybody can do. I think there's a collective set of things that we have to do in an organized way. So look, just to set up, right? We have had more. Activity and hedging. Than in any other period in recent memory except the great financial crisis, just to set the tone of where we are in terms of volatility in the capital markets. Mutual funds who don't short stocks, right? The multi trillion dollar mutual fund complex whose only job is to buy has been a net seller. Hasn't even started buying a single thing yet. We have an FOMC meeting. That's gonna happen next week, where Jerome Powell and the, you know, the Fed has to decide what to do in the face of incomplete data. It's not as if we've even stopped all of the purchasing of assets that we've been doing. We're still putting money into the system. I just want to be clear, we were debating when we stopped the spigot. We're not even debating when we shrink our balance sheet as a country, so. We are in a really complicated moment and I think the risk is that there is an overreaction to incomplete data and we plunge the US economy into a recession and I just think that that that has to be really thoughtfully measured and we skies we've seen this in 2019, 2018, 19. A free break. Any thoughts? No, I'm not an economist and I'm not a central banker and so I have no clue. OK. The the next thing but there but but Tomas Point, I mean we are dealing with balancing the risks of inflation against the risk of recession. I think that is fundamental and right now all the statements have been so hawkish. That, you know the markets have been just flowing red now for months and it's starting I think I think the the balance of risk is starting to make recession possible in a way that. Didn't seem possible. 2-3 months. Doesn't the repricing of assets, though, like we look at Peloton, you know, it's down whatever, 80% you look at zoom is down 78% when you see those things that were obviously mispriced. Rivian, which we talked about. I wouldn't use the term mispriced. They were priced. I would say they're repriced, they're they were mispriced. They're not repriced whatever they were, they someone paid something private, someone, someone sold them for something and nowadays they were pricing Freeburg safety. Yesterday they paid 25% more and then today they're paying 25% less. What difference does it make, whether it's yesterday, an hour ago or a year ago? Everyday pricing changes? Well, no. Here's the thing about the pricing. The pricing was based on people with a lot of money placing a lot of bets, maybe who are new retail. OK, fine. What's the point? The market condition changed. Well, I think maybe we had enthusiastic people betting things up without looking at fundamentals is my point. I think sex agrees with me here on this. So I think, I think we got that. Yeah, yeah. So now you have market participants who were gambling on like momentum. Now we're repricing stuff. Do we think, where are we at in this repricing or correct pricing or in the sense we're in the 8th in my opinion, I think we're in the 8th inning of of the tech drawdown. So if you're a high growth tech company, you've been smashed for three months in a row. As you said, Jason, we're off. Some stocks are off 80, you know, 50 to 80% of their era corrections. It really that's crashed error, crashes if you're, if you're, if you're in other areas like value. You've had a pretty good rally. If you're in crypto you're just starting to get smoked now if you're in why is it crypto this? I want your thoughts on this, Trump why is in crypto getting smoked like Peloton and zoom is because those people are hodlers or something? While crypto, I think, has slightly different dynamics than individual stocks like Appleton, but I think that you're going to see release for one, right? There's you're gonna cause you to understand what all the all the the market is, is who's bidding and who's coming into the market. I mean, there's still thousands of millions of people from around the world stepping into the crypto markets each day that are putting more money into these markets. Matt balances out the withdrawals and that's all the crypto is. There's no fairness underlying business that you're valuing. The peloton release was really bad. OK. I mean, it was very strange. Yeah. Well, I think they overthink. It was strange. It's just like we're just gonna basically stop producing anything because all of our inventory will meet our demand for the foreseeable future. That's a. That's not a good statement if you're a gross supposed to be a high growth. OK. So if we're seeing 50 to 80% sacks even Baker had a tweet, that's capital allocator. Yeah yeah, the bottom of the market he and it was a phrase something like when we shoot the generals and his comment was the generals are big tech. When those things traded down 25%, the bottom is in. And I think that collectively most people think that we're a little bit oversold in all areas except big tech. I think big Tech is down ten 1112%. When you see this thing really get cracked is when those folks you know, trade down another 10 or 15% and then I think we're kind of through most of the pain. So Peloton and zoom, we're kind of mid tech. I don't know what we call those, but I would call them like mid tech. They're obviously not big tech but they're not small either. Mid Tech gets their ***** kicked 50 to 80%, big tech 15%. But if big tech goes down 30% then we start releasing a bottom and we consider Netflix part of that. Ever see that? Because I think big Tech you have to remember is basically the index and in the last. 10 or 20 years, you've never seen drawdowns more than 15 to 25%. You've never seen it. And and when you've ever had a 15 to 25% drawdown, meaning the market goes off 15 or 25%, you have to remember the thing that we have also done over the last 20 years has created so much money on the sidelines, always looking for a cheap buying opportunity. And so the minute that these things, so even, you know, in March of 2020, remember when we started to do this pod and it literally looked like the world was ending. Yeah, the bottom existed for a week. Yep. And then within a week, the entire 25% loss in the stock market was wiped out and we were back to normal. So that's when I sold. Me too. I'll take our advice. OK, well, let's talk specifically about net. I think it was good that we talked about politics at the lows ohgod it too. I remember selling, I remember selling slack going, this is the dumbest thing, but I have no choice because I was how about literally raised 15? How about when Uber goes to 15 from 45? I I was ready to basic curled up in a ball and said I'm not selling, but I'm not feeling good. Right. By the way, This is why I was saying, Jason, like any comment you made earlier, I think you made a comment about, you know, what do you do right now to drive or make change in these markets? And I'm not sure that at the end of the day, the drive or the change is being made as much as the change that's being made is being driven by the market itself. There is just so many dynamics at play that it's very difficult to kind of ascertain where things are headed next, what's going on. And we're all going to sit here, we're going to speculate, we're going to flip a coin. It's going to come up heads, it's going to come up tails. We're going to be right, we're going to be wrong. It's really difficult to kind of put put our foot down and for any of us to put our foot down and say this is what I think needs to happen and this is what I think should happen or could happen or will happen. Half of us will be right, half of us will be wrong. But man, let's take another stock. I think it's interesting to talk about this. Netflix was that $700.00 could just cut a months ago. It's at 390 today. Credible, large. You want to talk about the business? Yeah, that's like a real business that you can assess what's going on with the business itself. Well, they think they're not gonna grow 2030% a year, they grow 8910 percent a year. But a fabulous business, right? Like great business. All the time. So is this becoming too much? I mean time. Netflix is so saturated. It is. It has achieved such incredible market share by growing so quickly every year for years and years and end at some point the growth was gonna slow down. They hit their natural audience. I think. I think Netflix is going to be the best example of consumer surplus at scale. And what I mean by that is they have given so much value away for an incredibly small amount of money. Like if you think about the value you get from Netflix. As compared to what you would get from Comcast and you spend 10 bucks a month, $10 or $15 for Netflix versus 100 bucks for Comcast, there was such a huge gap in value. But Netflix had to spend so much money to keep people entertained. The real question is at what point do they start to sort of like run out of the things that they can do to keep people engaged? And otherwise they, Jason, do what you did, which is you have a subscription to HBO Max, you have a subscription to Disney plus. Yeah. I mean, the headwinds are everybody gets in the game. The only real winner is the consumer. Yeah. And any individual company, I think, gets gets into a real tough spot. And I think what you saw was their earnings release basically said just that Disney's. Make a great job competing against us. HBO Max is doing a great job competing against us. So we're not sure what the incremental dollar that we can give you the growth that we've given you before when we had no competition. And that's by the way Lena, Lena Conn's comment which is the other side of the coin which is when you have more competition the consumer does win, it contains prices, it just doesn't contain asset inflation which does impact the shareholders of these companies. Yeah. And still, even at this level, $172 billion have a 35. XPE ratio one way that to look at this here. I think your point is an interesting one, chamath, where you talk about how much value they've given away over the years and what they have today. You can always look at the balance sheet of a business, a public company, and in the balance sheet there's this. This line goodwill, no. Well, not even goodwill, just the the accumulated loss. Accumulated deficit. And if you look at that on Netflix, they basically run the business right now as of their last earnings statement, which was December 31st, negative $40 million. So in terms of the total net cash that they've generated as a business since their founding, as a business, they've lost $40 million. So you know, and meanwhile the question is, OK, what's the, you know, so they're not necessarily at a stage where they've been generating cash, but for many, many years Amazon had a similar strategy where they were reinvesting all their capital. Yep. And that capital was going into building the business and growing the platform and adding the next layer of growth. The question is, has Netflix from a fundamental business perspective, not a valuation perspective? Have they added enough growth platforms into the business? Have they found enough other products, services or ways to build customers to grow the business? Everyone brought linear video, they don't have gaming, they don't have anything else. They did start doing works that are not comedy, really. They they they are dabbling. They dabbled with doing a couple of podcasts, they dabbled with doing a couple of games, and there's rumors that. They might try to get the other 20 or 30% of people who don't pay by creating a lighter version that was AD supported. In other words, you're not going to get the new season of Ozark, but maybe you can get the first two or three. You're a year behind the production schedule, but you could watch it all with ads. So why isn't Netflix and video games and sports? It's such an obvious one, that, and that's why I think they released a series of games based on their IP. So as their IP grows, and I think that's what you see with Disney plus is think about an App Store inside of Disney plus a merch store inside of Disney plus. I think there's so many of them. Why is there no merch store inside? Don't they? Why don't they own Spotify or have a Spotify competitor? Well, I think Spotify sees themselves as a. That's a, that's a really good point, you know, when you look at the peloton. I was looking at the peloton. Earnings when you know this, it was down 25% yesterday or the day before. And I was like, this is an incredible business because they have 2.1 million subscribers that pay 40 bucks a month. It's incredible. I mean, it's a money printing machine, money printing machine. I actually have a subscription. I don't even have a peloton. Peloton, I don't have any pay $500.00 a year to use the the classes. I have the app. It's crazy. I don't even use the app, but I think that's 20 bucks for the just that app. Yeah, but the point I was trying to make is when you look at it, you know, there's about 30% of that revenue that goes right back to the music. Labels for the music. So, you know, to your point, like, there's just an enormous value in actually music, you know? So, yeah, one of the Great Lakes built library values and content. They could be, they could point it to music as well. There's all these things they could do to reignite growth. A lot of people discount the the value of having a subscription consumer business. When you have a consumer's credit card on file and they're paying every month for something, it's an incredible point because you don't have the friction of getting the sale done. You've already done the sale. Yep. Now the question is, can you upsell them some new service or some new addition that they're not paying for today? So obvious. Yeah. It's so obvious, right. And so, like, by the way, I'll say this like for years, Google struggled with this question, which is what is Google's consumer subscription business? Because Google did not have consumer credit cards across its platform despite a billion daily users. And so Google for years was strategically trying to figure out what business can or should we be in to have a subscription model with consumers. Because once you have that, then you can charge for all sorts of stuff. You can charge for storing photos, you can charge for accessing audio, you can charge for accessing unlimited vision, if that'll be the. I'll take the contrarian side of this. OK, here we go. Yeah, go ahead. Go ahead, Peter. Tell no. Look, I I invest in B2B subscription businesses. I hate to see subscription businesses. And the reason is just the churn rates. What we see when we look at BC subscription businesses is 5% monthly churn is not uncommon. It's pretty much the standard. So call that 5060% churn in the subscription base every year. So effectively you're rebuilding the company from scratch every two years. I don't see like how you can build a successful business that way, but I'll tell you why you're wrong about this. But doing contrast that to be to be with B to B subscription businesses, you do lose some customers, but the ones who stick with you keep adding seats for more employees usually. And so actually expand your land expanse. Your courts are actually, your cohorts are growing 20% every year and says shrinking 50%. Now obviously there are some of these beta C subscription businesses like Netflix and Peloton. They are obviously valuable. They've defied gravity well, Netflix has done it because they spend billions of dollars on content and pelotons got it because. They. Plopa expensive machine in your house, so you can't forget about it. And that keeps you a little bit more recurring than like a lot of these subscriptions which are just very easy to cancel. But so look, they've been able to make it work. But I'm most of these. Here's why I think you're wrong. It turns out these are so low priced, these subscriptions that you get a lot of consumers trialing them. So because it's only 5 or 10 bucks a month to use something like a Spotify or a Disney, because they're so low priced, you do get a little bit of. Sampling, and that's why the rates higher. Whereas in business there is a massive onboarding of people have to take their time to set up the software, learn how to use it. So if you're going to commit to it, it does reduce it and you do have land expand. But what we're talking about with product expansion is the equivalent in SAS of land and expand. So imagine if Disney plus or Spotify, after you listen to an album or it's in your top rotation, they showed you the merch for that band. Or after you completed the season of Mandalorian or Boba Fett, they showed you the merchandise and said here's a limited edition. Of Grogue baby Yoda. When we tried to get baby Yoda stuff last Christmas, Disney dropped the ball. They didn't have any, and they could have had all that made and they would have sold millions of we were buying stuff on Etsy. The reason Baby Yoda works is because it's leveraged off a platform that this massive Disney platform, of which the BBC subscription service is just one piece. I mean, look, obviously there are valuable consumer subscription businesses, so the way I'm approaching it can't be right in all cases. However, I think people really get themselves in trouble when they start to value. These beta C subscription businesses is the same as the B2B ones. In one case you in the B to C case, churn is the predominant characteristic and it means that you're going to spend more on marketing or cogs or content or what have you to keep rebuilding the user base. Whereas in the B2B context, the user base is compounding on its own and that'll that just makes for I think a more financially attractive business, but it grows slower again just at the end of the day. These are all variables. Just the weights just changed. I agree with David that consumer churn businesses or consumer businesses have much higher churn than enterprise and enterprises have negative churn, which means that they just naturally grow. But the reality is consumers just have an unbounded Tam that enterprises do not. And the way that the way that the LTV's work just tend to be different and the cash flow cycle of these companies tend to be very different. And that's why you see Netflix get these enormous valuations that enterprise subscription businesses do, not what some people are now doing when they look at. So consumer businesses then look at churn is they take out the ones that are based on credit card to look at, like people who actually unsubscribe because they don't want it, but not because their credit card changed. So basically, so if you think about like Netflix's business, if it's turning 2 1/2% per month, that's called that 30% of the user base is attriting every year. They've got to rebuild their user base from scratch every three or four years now. They can do that. I guess at some point though they may run out of you know, Greenfield opportunity to grow their customer base. But you know it's going to pressurize their margins because they're going to have to constantly spend on content, original content to retain you. You have to spend on marketing to keep going after the portion of the archive you, you're, you're leaving out the archive. These archives are going to be super valuable and I don't think we even know how to value these archives yet because if you look at the Marvel. Archive of the Star Wars archive. These things just keep printing money year after year, and then you'll see Netflix and HBO Max will keep being able to go back to them, HBO Max being the canonical example now because you didn't think that that business would have, you know, a lot of IP to build on, but suddenly you have the many Saints of Newark and the sex and the city reboot. I mean, they're going right down the line. There's going to be an entourage reboot that has value. Disney has shown that you own the best franchise. HBO Max is now showing it, and then that means Netflix will show it next. But how much of a Netflix? Content, are they even own? Are they licensed or no now it's 100%. Netflix is 100%. They stopped and that's why Disney started taking it off there. Their whole spend that I think they're spending 20 billion or something, it's all on original content. So that that's why they made that move is because they knew they were going to have the Disney content, the Marvel content pulled. Where do we want to go next guys? Big well because I have COVID I want, I want, I want sacks to to talk to me about his what's going on with fouchy. Oh my gosh, this is quite a story. This really is. I'm trying to get my head around this story and I I'd be totally honest, my head went down and explain it to us because I think we all please, my head is spinning what's going on. OK, so a series of emails have come out that were requested on the Freedom of Information Act. And what they show is that at the NIH falchi and Francis Collins, who is ahead of it, they had a series of conversations with scientists around January, sorry, January 31st of February 1st. There are emails. On February 1st, summarizing those conversations and basically what they say is that a group of scientists advised Falci and Collins that COVID likely came from a lab. How they know? Because it had, you know, Hallmark signatures like the furan sites. The same reasons we now believe the the virus came from a lab. OK. But by February 4th, officials at so three days later, officials at the NIH. Including Fauci had come to the conclusion that the virus must have been passed zoonotic, really from an animal like a pangolin. It didn't come from the lab. And furthermore, they were starting to use language like conspiracy theory to discredit the the the lab leak, the lab leak idea, so that within a few days they were all in on this sort of so-called zoonotic theory. And they really began a campaign, in the words of Collins, a devastating takedown of scientists who were trying to discuss the lab leak theory that became the official position social. Why? Well, OK, so this is where it gets really interesting. Obviously, I can't speculate to Motus, but here's what we know the NIH fauci's division there. Years ago, there was a debate in the scientific community about how we study viruses. Fauci is an epidemiologist. He wants to study them. Makes sense. The debate is over whether you should enhance the viruses as a way to study them. so-called gain of function research. Their falci is on the side of engaging in that kind of research. There are other scientists who think it's crazy they lose. The NIH then makes grants to a group called the Eco Health Alliance. It's run by a British scientist named Peter Daszak. OK, by the way, who doesn't? Who doesn't support eco health and an alliance? Branding, yeah. And we and we love puppies. Yeah, we're yes. Angel. Angel puppy love. Yes, exactly. So, so eco health alliance, which is has neither been good for the ecology, for our health or alliances. Alliances everywhere, yes. So they then provide funding to the Wuhan Institute of Virology to study bat viruses where getting a function research then occurs. This lab in Wuhan is known to have had leaks in the past, so just from a security choice, not the best recipient of a grant, but that is what happens. OK. And then we know the history from there. It's almost certain that what's the, what's the element of this story that has to deal with The Lancet and the. Yes, I'll tell person that worked for Fauci. And then, uh. And then that person got a grant afterwards. What? Well, and then just one other thing I want to point out here. So we're clear this has become a very partisan issue, but the original foas were done by BuzzFeed. And the Washington FOIA, sorry, the FOIA releases were done by BuzzFeed and Washington Post, and now you have Rand Paul on the other side of it who seems like really wacky and obviously conspiracy right wing. So you have this, like really weird partisanship that's now been embedded in it. OK? Yes. So, sex, can you explain the partisan nature? And that has a question. I almost wanna take Chamas question 1st about who's this dataset guy, what is this last letter? Let me come back to the party thing. I'm just gonna try to establish the facts before we get into the partisan mess of this thing. So Peter Daszak is the guy who made these grants to the Wuhan virology. OK, there is one other interesting fact when the West wanted to come in and investigate what happened in this lab. China approved one person from the West to come in and conduct the investigation. Guess who that was? Peter Daszak, OK, he was the only guy the CCP let in to go look at this lab. He then comes out of this, whatever he did, and says it has to be the zoonotic theory. He endorsed the wet market idea. It cannot be lab leak. That is a conspiracy theory. And then he rounds up a group of scientists to write a letter to The Lancet, which is a respected scientific publication which is incredibly respected. Yes, which he signs in which he basically advocates the zoonotic. Theory. But he goes further and says there is no way. That it could be lab leak and anyone who says has a conspiracy theorist and that has an incredibly chilling effect on the scientific community. Because no scientist wants to be labeled a coup or conspiracy theory or heretical to The Lancet. Exactly. And this is a tight knit ecosystem of of of insiders, insiders and institutions and grants. No scientists wants to lose their funding, right? And then furthermore, big tech starts censoring US disinformation. The lab leak theory. Because. They say, well, these officials look at all the scientists. We have to follow the science, right? So the science, according to this letter from The Lancet. Is basically on the side of the zoonotic theory. So you then have downstream censorship of this, so that that is who Peter Daszak is, and and and and in this letter in The Lancet, he never disclosed his conflict of interest, which is the fact that he funded this Wuhan Institute of Virology to conduct the type of research that might have led to the leak of the virus. So this guy is hopelessly conflicted and has a reason to want to suppress and cover up a lab leak, and he never disclosed it. And look, so does Fauci. I mean, because Falchi funded daszak. So imagine when, in February of 2020, when the lab leak is coming across the desk of Falchi does he tell the President, Mr. President, he's at the right hand of the President. Mr. President, we might have funded this thing. We funded Dazzle, who funded the Wuhan lab. We collectively the United States government, might have some responsibility in this. Do you think that conversation ever took place? When he was making his recommendations, he was hopelessly conflicted. And if the truth about this had come out and look, I'm not saying he had any intentional role, I'm not saying he wanted this to happen. I'm not even saying that he knew for sure that Dasik was funding the Wuhan lab. OK, let's just give Fauci the benefit of the doubt. But we all know how politics works. If it had come out in February of 2020 that Fauci had funded the guy who funded the Wuhan lab and that's where the virus likely came from, his career would have been finished. OK? Finished. We know that as a political reality. And so within days of scientists advising Fauci, hey, this thing probably came from the lab. The NIH has consolidated around the idea that this is a conspiracy theory and they work to suppress it, and they wage a public campaign. I got to tell you, when I have learned all these facts, I got to tell you what I compare it to. It's almost like we learned all those revelations about Bill Cosby that here's this guy on TV for years pretending to be America's dad, and then we find out he's a monster. Not just been on TV for years lecturing us about COVID. He's been like America's dad, America's doctor. And lo and behold, we find out that he has a role in this whole thing. And look, I'm not saying his intent was not to. Of course it wasn't anybody's intent has been forced to tell people. So it's a little bit of I'm gonna give him, I'm going to give him the benefit of every doubt here. I'm gonna give him the benefit of every doubt. OK. Just called him Bill Cosby. I'm gonna give him the benefit of the doubt in the sense that he didn't want this to happen. He didn't have any. He didn't cause that. But we know for a fact that he funded daszak who funded this lab. It's where the virus came from. Come on, we know that and he covered it up. He engaged in a campaign we suppress the lab leak theory that is a conflict of interest. Let's get let's get free began on the science. What do you think as some a man of science Friedberg the Sultan of science and fact about these emails and the chances that Fauci essentially. Was. Funding gain of research and then attempting to cover it up, which is the accusation the question of science. I look there, I mentioned this in the past, Jamie Science community, you know, Jamie Metzl did a A a podcast interview with Lex Friedman. It's worth listening to. It's a couple hours long if you've got some time to kill, but he does a good job contextualizing these matters and what may have gone on that led ultimately to the the lab leak and also the lab leak cover up. I don't know what happened with matching emails. I have not read this up, so I, you know, I I have no reason to believe that Fauci is now intentioned in the sense that he has some reason to harm or hurt. I I could see that there is a certain degree of nervousness to accuse the biggest. Foreign government and potential US adversary of causing a global pandemic and and not wanting that sort of conflict to arise at a period of time when you really need to take care of your people and we really need to focus internally as a country on how do we get through this pandemic and making that supply response that I got a response to that. So I have to respond to that. I'm not saying that Fauci or anyone involved in that process should have accused China, but that's not what was their decision and that what was not was debated. They decided to stop the debate altogether. They decide to suppress the debate. What would you have done in that seat, sacks? You're sitting in that seat and the country is potentially facing a pandemic that could wipe out millions of Americans. Where do you, where do you prioritize? How do you? How do you? I'll tell you what. If I was sitting at the NIH and I wasn't hopelessly conflicted, I would probably have just said, listen, I don't know what the origin of the virus. Is let that debate continue. I would not have tried to wage a public campaign against the people, against the scientists who were honestly pursuing in good faith where this virus might have come from so we can learn things. Maybe how to avoid something like this from happening again. The people at the NIH should not have engaged in that type of politically minded PR campaign. They just shouldn't. That's not their job as scientists. And then to find out that they have a conflict of interest on top of that, that might be motivating that desire. That is not, that is not appropriate. I think it's really important. Freeberg you can probably agree with this that at some point some journalist. Should really simplify this for all of us, because it's it's a it's an incredibly important topic that we need to look at at the end of all of this, assuming that omikron is the end of this chapter because it's been a horrible chapter for the world. But we do need an accounting of the truth, right? And I think that that's really important there. There was an episode many ago when I said I don't know and I don't care about whether or not the virus came out of China. And again, I was somewhat kind of misstated as the intention of why I said that, the reason I said that and what I really meant was that what happened, even if it was a lab leak, what happened was really the tip of the iceberg. The ability to bioengineer pathogenic organisms is becoming ubiquitous. The toolkit to do gain of function research, as it's being called in the press, is a very simple toolkit. The ability to engineer organisms that can cause catastrophic harm to the human species is becoming available on the Internet and with tools that any of us can buy and use in our garage. And So what I'm more questioning and what I'm more concerned about, what I care more about, is what is our global biodefense strategy? How are we getting ahead of the next wave of this? Correct. And it's not about The Who said, he said she said those things, those things out of. It's really important to understand that, you know we need biodefense. When they're saying it came soon nautically, they're saying it came from an animal when actually was created in the lab. If you want to have biodefense, we got to first say that again we did or did. Yeah, you're right. Whether it separate question to me whether it did or didn't, the tooling to do this is absolutely possible and the ability for these sorts of viruses to leak out and be made. And turned into a weapon is significant. It's a real risk. And so I'm for you guys, I think both of you guys are figuring out how do we solve this problem like two different guys are. But both of you guys are saying nuanced versions of David is saying we have to have an honest accounting of what happened, if we could, if we're supposed to actually have an eco health alliance. And by the way, I'm not. You're not. You're saying. Yeah, I'm not. I'm not dismissing that. Yeah. And you're saying we need to actually formalize gain of function research because. Everybody has it. And so it's going to be inappropriate for us to ignore it. Going to assume gaming function research leads to dangerous pathogenic bio organisms and one doesn't need to and then we need to formulate it doesn't and then we need to formulate a biodefense strategy. I'm just saying like we don't. The implication, the reason why saxist thing is important to me is the implications. We have to have an honest accounting of these implications. We saw another implication just this week in Flint, MI. They shut down indefinitely the public school system in Flint, MI. OK, this is a society. Just to give you a sense of the facts here, 90% are minority. 80% shut it down because it 2% because of COVID, yeah, because of the fear of of catching COVID and spreading COVID. But the and 890% of minority kids, 80% are in poverty. I don't know how you know. 80% of kids who are in poverty are expected to have a laptop and Internet access on a consistent basis. This is the same place that screwed up the water system, so I don't. So I think like we have to have an honest accounting of of all of these things because the implications are real. This is the biggest story of our lifetimes, COVID. I mean, it might be the biggest international incident since World War Two, and the fact that the major, let's call it prestige publications, have not really fully investigated what happened is this is the conundrum to me, because this started with a massive amount of coverage from BuzzFeed, Washington Post, New York Times in June of last year, 2021. They were covering this like crazy. Vanity Fair did a major investigation and then. It seems to have gone silent and then Rand Paul has been going after this and it all of a sudden became partisan. So the only coverage I'm seeing of it that's independent is the intercept. But then everything else is the hill and you know, really weird far right stuff that want to like, you know, fouchy needs to be whatever. And how did it become so partisan if it started with left-leaning publications getting this information sacks like how did this become partisans? Because the President changed in the middle. Of all this, like what do you have an honest handicapping of why we can't get? You know, like a consensus on what's actually happening here from the press. Is it Rand? Paul's too polarizing? Well, I think what happened is if you go back to February of 2020, if you look, I just had this conversation with Ashley Reinsberg on my call in show and you know, he's been plugged. Now available. Wait, can I he he he literally wrote the book on the New York Times and I asked him about their coverage of probably account. You could trade that out, Robert. OK, so fine. Can I, can I finish? I'm sorry, this is the guy who literally, this is the guy who literally wrote the book on the New York Times. And I asked him about the New York Times coverage of of COVID and COVID origins. He says that on February 17th, so basically two weeks after these officials at the NIH settle on the conspiracy theory narrative that that narrative is then published almost word for word verbatim using the same language, not just the New York Times in the Washington Post. Across all these major publications. So what you see there is a PR campaign. It's a concerted effort. You don't get the same words and language being used across all the major publications at the same time, unless somebody is pushing that narrative. We all know this. This is corporations do this, right? They run PR campaigns. That is what basically happened. And so the prestige media got on board this zoonotic theory and this idea look like they've done so many times. They got on board WMD in Iraq. 24 realizing it was a total farce and a hoax. OK, they so they got themselves on record behind this conspiracy theory idea and similarly. I think the Democrats got themselves on record as being pro falchi and everything because of, you know, TDs, right? Anyone who's standing up to Trump must be correct and defended. And so all of this happened in 2020. And so by the time we now Fast forward to, let's call it an honest investigation of the origins of the virus, which should be bipartisan, this should not be partisan. We should all want to know what happened. We should all want to take the politics out of it. Because without knowing what happened, how do we prepare for it? In the future. Everyone's already, like, hopelessly committed to positions they took in 2020, and I think this was driving the partisanship. Yeah, I think you're. Yeah, I mean that's the thing I'm trying to get to is like when I saw you wanted to put it on the docket, I'm like trying to grok this and I can't find. I'm finding all the left-leaning coverage from June of 2021, none since then and then it's all right coverage now and I think it's something we need to get some independent coverage with. So I'll take credit, I'll take credit for saying Fauci is the biggest political Luther at our all in podcast recap. Thank you. I'll take my bow now. I mean and the the other thing that's kind of. Furious have come true already. I mean, I know we're so correct on these things. The thing that's I think just infuriating right now is that everybody is trying to manipulate the public. And they have not understood that in this media environment, the truth comes out. Kind of, not only eventually, but pretty quickly. So stop trying to game the public either way that the vaccines don't work, they do work. Delay. They've delayed the public reckoning on this by what, like 2 years? Well, here's the thing. There's a, so I agree with you on that. There's also a flower release that happened in the UK where and it's a little too much to get into right now, but this four release now is looking at all the people who died in the UK of COVID and it turns out like maybe more people are dying because they didn't get their cancer or a large number of people. Right, because they didn't go in to get tested for cancer and all of this is going to come out eventually and not putting out every day the ages. And the comorbidities of people who died of COVID just led to this feeling that we're getting gained and turning on CNN and seeing the case counts in a cumulative chart is like a startup giving me, like, the cumulative number of people who registered for their company but for their product. We don't care about that. We want to know your daily active users. Like, what about the catastrophic impact of school closures that we've been talking about this show repeatedly? You know, I I really speak manipulated. Stop manipulating the public. Look, you you have to realize that there is huge political motivations here, because huge. CYA going on because the heads of the Teachers Union said there is no learning loss. They are the ones who lobby to shut the schools down. They sure as hell aren't going to admit their mistake. Now they're covering it up, and so any politician who takes their money is basically they're going to muffle their criticism. There's only one really honest like left wing guy I've seen acknowledge the school closure issue, which was Jonathan Chait had a great article in New York magazine saying that progressives must acknowledge the mistake of school closures. Because otherwise we can't learn from it. He has been a voice in the wilderness on that side of the aisle. I think we gotta wrap up now that Sax has cracked open the plugs. What are we all working on? Because I want to give a plug to Friedberg, who did a great interview on a tech podcast called this Week in Startups where he announced Tanna. So it's a dual plug here. Friday's episode of this week in startups. Maybe you could tell us a little bit about the launch of of Canada, your new applicator. We're just announcing the business. Which I talk about a lot on Jason's pod, so definitely worth hearing. But as you guys know, I've talked a lot about this concept of decentralized manufacturing, where we can kind of move old school industrial production systems, which are super inefficient. We use lots of resources, move stuff into factories, process them, and then ship the products back out. And you know, technology now allows us to have more distributed or decentralized manufacturing potentially. So what, you know, what we've been working on for three years at this point is a company called Kanna. Which is really about, you know, printing beverages in your home so you can use a single device to print a iced coffee or iced tea, cocktail juice, wine, soda, etc, all using a single flavoring system and water from your from your sink. We talk more about it on the pod, but I think this is a big theme. You know, forget about Canna for a second. But generally, like the systems of old, like, you know, the industrial revolution created all these old school systems that are big contributors to carbon emissions. And are super resource inefficient. And I do think that everything from 3D printing to biomanufacturing to this system that we kind of introduced today with Canada can completely reinvent our global industries in different ways and ultimately lead to cheaper products, better products and products that use much less natural resources and put less carbon out. And so it's been a big thing that we've been working on. I'm excited to kind of open it up a little bit and talk more about what we're doing. So thanks for having me on. Did you hire the Muth as a spokesperson? He may or may not have his brand on here. We'll see there. So right now the business is. Is signing up lots of different folks that can create digital beverage brands and so if any of you guys wanna have jakkals, you know hard cider, hard cider and we'll we'll be launched into that but that's. Actually told me his his new, his new soda that he's going to be bringing. It's called youth cola. It has five times the sugar of Coca-Cola. Other than that, it's just like any other colder. But you get five times the calorie drips out like Maple syrup. I'd like to, I'd like to do a you gotta plug. I'm sorry project, but I I want to, I want to say it again. In Genesee County in Michigan. Flint. Indefinitely shut down their public schools this week. What's going on? You have thousands of kids. Who at best will have to learn via zoom and Internet access that most of these kids may or may not have because again you know they're they're in poverty and and so I just want to make sure that everybody just understands that everybody tweet that and and self-inflicted wounds. Well here's the thing. These kids this is one of Eric Adams nine 9090% minority, 80% in poverty, all virtual until further notice. Well here's what's going to happen to it goes right against the. CDC guidelines. OK. And uh, this is really the accounting of the cost and we are as we said before learning loss in our kids is going to be the single biggest thing. We look back in 20 years coming out of this pandemic and realized was the the the biggest price we paid for this. So. And here is the stupidity of it. The what? The and Eric Adams and the and the New York City, you know, sort of leadership. We're talking about this when these kids are in school, OK? There's a chance of gonna get ambron. Like everybody got Omicron. Like everybody has it now. Like it's crazy how many people in our circle have it? The only person who doesn't have is Phil Hellmuth. Now, what's going to happen when they go home or they're not in school and they're hanging out with their friends or looking for something? They're going to get it anyway. That is, a school is the safest place for them to be. Yes, totally, totally. And the school shutdowns are just so insane to me right now, it makes no freaking sense. UNICEF had an article, which I'll dig up, where they said that the cost in future earnings by this generation of students who suffered learning loss is going to be 17 trillion worldwide. That's going to be the economic impact from this thing, not to mention the stunt to visual and emotional development by locking these kids down. For your anxiety, PTSD. I mean, this is going to create depression in kids. We need to solve this. We gotta, we gotta get, we gotta get the schools in Flint open. All right, everybody for the dictator. Chamath Polly. Hypatia. David Friedberg, the Sultan of Science and the Rain Man himself. David sacks. I'm Jake. How we'll see you next time you go 65. Love you, besties. Bye. Bye. Let your winners ride Rain Man David Sack. We open sources to the fans and they've just gone crazy with it. I'm going. Besties are. My dog taking your driveway. Ohh man. We should all just get a room and just have one big huge order because they're always useless. It's like this, like sexual tension that they just need to release stuff out there. Beat, beat. See what we need to get merchants?