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In this episode of Rush to Reason, host John Rush welcomes back A.J. Rice, a familiar voice to the show, to discuss the ever-evolving landscape of American politics. Rice shares insights into how Donald Trump, referred to as the ‘great disruptor,’ is redefining the political playbook with his unorthodox approach and powerhouse team of disruptors. The conversation delves into the unprecedented strategies Trump has employed and the implications these hold for the current political environment and beyond. A.J. Rice emphasizes the critical role of media and influence in shaping public perception and policy, illustrating how the involvement of diverse
SPEAKER 03 :
This is Rush to Reason. You are going to shut your damn yapper and listen for a change because I got you pegged, sweetheart. You want to take the easy way out because you’re scared. And you’re scared because if you try and fail, there’s only you to blame. Let me break this down for you. Life is scary. Get used to it. There are no magical fixes. With your host, John Rush.
SPEAKER 17 :
My advice to you is to do what your parents did. Get a job first. You haven’t made everybody equal. You’ve made them the same, and there’s a big difference.
SPEAKER 14 :
Let me tell you why you’re here. You’re here because you know something. What you know you can’t explain, but you feel it. You’ve felt it your entire life, that there’s something wrong with the world. You don’t know what it is, but it’s there. It is this feeling that has brought you to me.
SPEAKER 18 :
Are you crazy? Am I? Or am I so sane that you just blew your mind? It’s Rush to Reason with your host, John Rush. Presented by High Five Plumbing, Heating, Cooling, and Electric, where every call ends with a high five.
SPEAKER 16 :
All right, Hour 3, Rush to Reason, Denver’s Afternoon Rush, KLZ 560. A.J. Rice joining us now, author of the White Privilege album, Bringing Racial Harmony to Very Fine People on Both Sides. We’ve interviewed A.J. plenty in the past, and somebody that most of you don’t know, but I talk to on almost, or communicate with, I should say, A.J., on almost a weekly basis, if not a weekly basis.
SPEAKER 07 :
Great to be back. Johnny Boy, big shout-out to the Very Fine People podcast. They delivered in November, and they’re going to deliver here with these cabinet picks.
SPEAKER 16 :
Amen. So let’s talk about a few of those. First off, Pete, we got him confirmed. I say we. I mean, I didn’t have anything to do with that, but maybe we did. I hope we might have had a little bit of influence there. AJ, that one, by the way, I was really worried about because I wasn’t sure whether he was going to make it through or not, but he did.
SPEAKER 07 :
It’s a game of inches, right? Most of the game takes place between the 40-yard line, but if you’re going to score, sometimes you’ve got to be like the Philadelphia Eagles and do the push-push.
SPEAKER 16 :
Yeah, exactly.
SPEAKER 07 :
Just push right into the end zone over those commanders.
SPEAKER 16 :
And, A.J., some of the stupid – and I really – I mean the stupid questions that came his way, like have you ever performed an audit on this large of an organization and blah, blah, blah, blah, blah. And my first thought was had any of the other prior defense secretaries done that? No.
SPEAKER 07 :
No, not at all. And, I mean, let’s be honest. I mean, you and I have talked about this, and my books weigh in on some of this. If Abraham Lincoln was the great emancipator – and Ronald Reagan was the great communicator. Donald Trump is the great disruptor. And he’s not alone this time around. No, he’s not. He’s not rolling in here with Reince Priebus and Kellyanne like he was in 2016. So he has come in with an entire team of disruptors. Because you can’t just, you know, the fish rot from the head, yes, but the rest of the fish is rotten as well. And you can’t just take the tops off of these departments. You have to send disruptors in, like Scott Besson, like Tulsi Gabbard, like Cash, like RFK Jr., like Pete, like Pam Bondi, and you have to drop a bunker buster on these departments. Ten levels down. You’ve got to go ten levels down.
SPEAKER 16 :
Really quick, we’ve talked about some of this in the past. I think that’s the biggest difference this time around with Trump than prior is, A, he learned a lot the last time around and was coming in this time literally, A.J., guns a-blazing, knowing exactly what needed to happen. I mean, I don’t know in my time, You know, looking back and remembering first, you know, first president voted for was Ronald Reagan. I can’t think of any other presidents that did what Donald Trump did inauguration night, signing executive orders the way he did.
SPEAKER 07 :
It’s never been done like that. It’s never been where we’re operating on Trump time now. OK, so 10 years take place in 10 minutes. Right. Yeah. And look, I can tell you, I’m talking to them. I’m talking to the White House on a daily basis. I was talking to the transition team. And, you know, I don’t know whether you’ve connected all the dots, but, I mean, half of the Cabinet are former Publius PR clients.
SPEAKER 16 :
Yes.
SPEAKER 07 :
Not just the big names I just rattled off.
SPEAKER 16 :
Right.
SPEAKER 07 :
But, I mean, we’re talking undersecretaries of the Air Force and all kinds of people. And they are all stone-cold anti-wokism warriors. So, you know, we’re going to have to go, you know, from department to department and like bloodhounds in the backyard, Johnny boy, and dig this stuff up to get it out of here.
SPEAKER 16 :
You’re right. You know, AJ, you are spot on, and I believe, I do, I believe fully, and I know a lot of people maybe are a little bit skeptical, although when you say what you just said and you look at the people that he’s bringing in around him, and literally these are people that mean business. They’re not going to take no for an answer. You know, he is setting all sorts of precedents, if you would, in regards to Things like, hey, we are not going to hire any more federal employees. There’s a freeze on that. Oh, by the way, all you DEI guys, yeah, you’re gone as well. And oh, by the way, don’t be trying to disguise your DEI department as something else because we’re going to still root that out, find you, and still make sure you don’t have a job at the end of the day. These are things, AJ, no one else has ever done.
SPEAKER 07 :
That’s right. And look, the Democrats are still the gang that can’t shoot straight. They can’t figure out, you know, how to… stop what is coming.
SPEAKER 16 :
Let’s stop there for a moment, because what you just said a moment ago, you know, Trump’s the great disruptor, which, by the way, I believe that wholeheartedly. These guys that you’re talking about, these hardcore Marxist lefties, have never had anybody come along and disrupt them to this level. Now, I do believe that they thought Trump, by the way, would would do some of these things, although not to this degree. And they literally, A.J., have never had anybody come along and push back against them like he is.
SPEAKER 07 :
Well, let me just tell you. Here’s the thing. There is an institute in Washington that was started after the 2020 election called America First Policy Institute. It was an America First version of a Heritage Foundation type place. And there were plans in place. for after the 2020 election to systematically move, you know, like shooting 100 Tomahawk missiles into Syria at the speed of light, at the speed of Trump time. And this stuff was ready. And the Democrats, I guess, didn’t realize it was ready. They were too busy following the Project 2025 around to not realize that over at the other American… policy institute right that the roadmap of the blueprint for what was coming was was ready to go this is why he was able to he’s able to move as fast as he can great point and look you know that’s the thing is there they don’t know which which you know car to chase no no they don’t know yeah you’re you’re right they’re they’re that dog chasing cars and don’t know which tire to bite correct correct so and that and that’s the main thing here with trump and look um let me just say this too The American people sent him there to disrupt.
SPEAKER 05 :
Right.
SPEAKER 07 :
They sent him there for this. And he’s, you know, he’s basically he doesn’t have to run for reelection again. So he’s just going to be Trumpzilla. He just, I mean, really?
SPEAKER 05 :
Yeah.
SPEAKER 07 :
You know? You’re right. And he’s not going to play games. Look, he tried to play nice with the establishment, the swamp, the uniparty in 2016 with the Mattises and the John Boltons with the mustache and the H.R. McMasters and the Rex Killersons and so on. That got him nowhere. It got him basically impeached twice, indicted four times, went with two assassins on the field. So this is who you’re dealing with. And he didn’t start out this way. You created this. So now you’re going to have to take your medicine.
SPEAKER 16 :
Good point. No, A.J., spot on. It’s been an exciting week. I’m looking forward to the future. I predicted yesterday that you’re going to see him run this end of things like this, executive orders, different things that he’s doing. He’ll let all of his folks get confirmed. He’ll then start to hand some things over to them, and then he’ll start working on some of the next big projects and tasks that are out there. He’ll start working with Congress and the Senate on, hey, we need to run these bills, get these things changed, get some of these things set in stone so the next guy coming in, whoever that might be and whenever that might be, can’t change these things. And by the way, to your point, A.J., that’s what the American people sent him there to do.
SPEAKER 07 :
Correct. And for all this talk and all this outrage and the crying Selena Gomez, I just want to remind your audience about one thing. There were two blue walls that came down in November. Yes, the one up in the Rust Belt, but the second blue wall came down, and it runs from basically Brownsville, Texas, to El Paso, Texas. These counties along the Mexican border are not exactly filled with Scandinavians.
SPEAKER 05 :
Right.
SPEAKER 07 :
Okay?
SPEAKER 05 :
Right.
SPEAKER 07 :
And they all voted for him. So this idea that we’re all crying because the lettuce pickers of America are being vacuumed up, oh, no. They are on the front lines down there, Hispanic Catholics being killed, trafficking, drug trafficking, human trafficking. These are Democrat districts, and they all voted for Trump. So they are on the front lines, and they certainly know more than some Hollywood elite in their mansion in West Hollywood.
SPEAKER 16 :
Yep, yep. And I talked last hour, too, and I think this is a huge game changer. Somebody just asked me, hey, what were you talking about last hour that you think is going to be a huge game changer when it comes to the White House? And that is now, AJ, the allowance of a lot of other news organizations, podcasters and so on, that are now going to be allowed a seat at the table to be able to sit in these press conferences. is going to be very detrimental to the regular mainstream news media because it’s going to give credibility to a lot of folks by the way that firmly deserve it aj but that is in my opinion a huge game changer one that between that and if rfk jr gets confirmed and then can end all pharma ads which by the way we need to end in america because us and new zealand are the only two countries that allow it if that happens uh let’s just say this aj that’s a death nail for the big networks.
SPEAKER 07 :
Absolutely. And look, I’ve been here in the swamp for 20 years, and the mainstream media, the legacy media, they have this, we need to break the stranglehold, especially in the White House. You know, the audience, I’m sure, realizes this, but let me just state that, you know, there’s this organization here, the White House Correspondents Organization, where every year they throw this party to themselves and pat themselves on the back for being little, good little digital Marxists. That needs to be broken. And, you know, you can break it by bringing podcasters in, influencers in. And I think Caroline Leavitt, who’s a star, who’s a total freaking rock star, she’s going to help break that because, you know, How many people does NBC News speak for? Do they speak for more people than Theo Vaughn does? I don’t know. I’m not sure anymore.
SPEAKER 16 :
Well, I can tell you right now, when you compare their numbers to a Joe Rogan, for example, with about millions upon millions of followers and folks that listen to his podcast, A.J., that one’s pretty easy to determine who’s got more followers.
SPEAKER 07 :
Well, that’s just right. And these people—and I’m here, man— I came up like a puppy here, okay? So I didn’t just parachute in here. I built the Publius PR Mountain right in the middle of the Potomac River. And I’m telling you, these people all watch each other. They all congratulate each other. They all date each other. And it’s one big circle, Jay, with each other. And they don’t really have an audience outside of, you know, New York and L.A. and D.C. They don’t. So, you know, the idea that – I thought they wanted the equal distribution of wealth. Well, how about the equal distribution of a chance and a question?
SPEAKER 16 :
Yep, absolutely. It is a game changer, A.J. A lot of things are going to change moving forward. I don’t think the left honestly has any idea what’s coming their way because, to your point, their head has been – well, let’s just say this, A.J., They have been more worried about trying to figure out whether they’re male or female and teaching kids that same thing. They’re more worried about transgender bathrooms and things along those lines. At the end of the day, AJ, they have literally gotten so off track that this has got to be catching them by surprise.
SPEAKER 07 :
Well, it shouldn’t. And, you know, as someone that loves watching them lose, I say keep it up. Keep planting your flag with the trans mafia. AOC is getting into a fight with Nancy Mace on Capitol Hill about letting dudes in the women’s bathroom. I say keep it up. Don’t talk anymore to the UAW. Don’t talk to the Plumbers Union in Pennsylvania. Don’t talk to the Coal Miners Union in West Virginia. And just keep talking to the 0.8% of people that think they were born in the wrong body.
SPEAKER 16 :
Good point. Good point. AJ, always great. I always enjoy not only you, but the folks that you send our way. I’m very appreciative of that. And those of you listening, AJ is very instrumental in a lot of the top dogs you get to hear here on our program on a routine basis. And yeah, AJ, I’m very thankful for that.
SPEAKER 07 :
I appreciate you, brother. You keep fighting out there. And to all you Broncos fans, have no fear. Ben Franklin and the Philadelphia Eagles are going to take it to these Chiefs.
SPEAKER 16 :
Right. I hope so. I hope so because we hate the Chiefs, as you know, AJ. That’s why I said it. All right, man. Appreciate you. Have a good night. All right, man. And those of you out there that are listening to AJ, you can follow him. He’s on social media. He does all sorts of things in that world. All you have to do is look him up, A.J. Rice, and you’ll find him on all sorts of the – How should I say this? Social media channels that are out there. He is all over. And yes, very instrumental in sending us a lot of the top folks you hear here on a routine basis. He is great. And I will say this about him. And I don’t want to say this and embarrass him by any means. But he is one of those guys where if there is somebody that we want. or I want, I should say, and they’re a big name. And I just put in a little, hey, I’ve got a couple of different slots this week in these particular openings. He is so gracious to put us really at the top of the list when it comes to that, and I am very thankful for that. So he does a great job for us on that end of things, and I appreciate A.J. greatly. Flesh Law is next. Criminal, civil, whatever it is that you need help with, give Kevin a call today, 303-806-8886.
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SPEAKER 16 :
All right. And as we talk through the RFK Jr. confirmation, remember, Dr. Scott feels exactly the same way that we do. And RFK does, by the way, RFK Jr. does, by the way, on a lot of the things that he’s even being literally railed on right now by a lot of his fellow Democrats right now in the Senate. The reality is Dr. Scott is a great doctor. He is not beholden to big pharma or big insurance. He wants to do what’s best for you and your health. His phone number, 303-663-6990.
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SPEAKER 16 :
This is Rush to Reason on KLZ 560. All right. I’m going to slip this in because it’s an article that just came up in Apple News. It’s from Fortune. Bosses are firing Gen Z graduates just months after hiring them. And here’s what they say needs to change. So after complaining for the better part of two years that Gen Z grads are difficult to work with, bosses are no longer all talk no more. action now they’re rapidly firing young workers who aren’t up to scratch just months after hiring them according to a report six in ten employers say they have already sacked think about that six out of ten have already sacked some of the gen z workers they hired fresh out of college in recent months intelligent.com a platform dedicated to helping young professionals navigate the future of work surveyed nearly 1 000 u.s leaders and found that the class of 2024 shortcomings will impact future grads. After experiencing a raft of problems with young new hires, one in six bosses say they’re hesitant to hire recent college graduates again. Meanwhile, one in seven bosses have admitted that they may avoid hiring them altogether Next year, three quarters of the company surveyed said some or all of their recent graduate hires were unsatisfactory in some way. By the way, showing that the Marxist movement among colleges and universities is not working because these people are not these kids. and their kids to me, are not being taught a solid work ethic, what to do to actually perform in their job. And I’m afraid to say they’re probably being taught more how to be political activists than how to be great workers. And that’s not boding very well for them because at the end of the day, they have no job. Employers gripe with these young people today is their lack of motivation or initiative. 50% of the leaders survey cited that as one of the reasons why they didn’t work out with a new hire. Bosses also pointed to Gen Z being unprofessional, unorganized, having poor communication skills as their top reasons for having to sack graduates. By the way, for all of you listening that might have young kids, might even have high school age kids floating around your house, Please, for the love of God, teach them how to communicate beyond their phone. In other words, not texting. Teach them how to pick up the phone and have a conversation. Teach them how to have a one-on-one conversation with people that are older than them or that are the same age. And unfortunately, there’s a lot of folks out there listening that have kids that, by the way, don’t know how to do anything that I just said. And how do I know that? Because I watch it, I see it, and I’m an observer of. I cannot tell you how many young people today cannot have a normal conversation without texting. And it’s proven here because once they go through college, that is not changing. They get out of college, they go to the workplace, and they get fired. Why? Because they don’t know basic communication principles and skills. Folks, this isn’t that hard. Unfortunately, it starts at home, it continues on in the classrooms, it goes on into the college and university level, and when they’re done, they’re done. Because they can’t hold down a job. Please, parents, grandparents even, teach your young people how to communicate by putting the phone down. And or talking on it if they have to, because most of them won’t even do that. There are so many of that age group, by the way, that don’t even know how to leave a proper voicemail message. Yes, I just said that. They don’t know how to leave a proper voicemail and or even set their own voicemail box up correctly. Probably don’t even know they have it. They’re so used to texting that they have no idea on how to communicate with one another. And by the way, leaders in the workforce are sacking them because of that. They also talk about how they’ve struggled with the latest generation’s tangible challenges, including being late to work and meetings, often not wearing office-appropriate clothing and using language that is appropriate for the workplace. In other words, they’re duds. They’re losers. They come out with this great degree. but have no ability to apply that and or hold down a job. How sad, by the way, is that? And these numbers, by the way, are far, far, far too high. So we’ll talk to Scott Garlis here in just one moment. Don’t go anywhere. Hi-Fi Plumbing and Electrical is next. And if you’ve got an electrical need or a plumbing need, upgrades you want to do, any problems in your home, give them a call today, 877-WE-HI-5.
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SPEAKER 18 :
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SPEAKER 16 :
All right, we are back. Rush to Reason, Denver’s Afternoon Rush, KLZ 560. Scott Garlis joining us now. Scott, it has been an interesting and eventful, I should say, past week.
SPEAKER 06 :
Totally. For a lot of the different reasons than we thought it would be.
SPEAKER 16 :
Yeah. And one of the things I wanted to bring up today, which I haven’t talked much about, in fact, I was waiting for you today to really get into the whole hoopla earlier in the week about, you know, the whole AI end of things and what happened with Japan or sorry, with China’s deep seek and all of that. And I wanted to talk to you about this because when I first saw it, I’m like, OK, wait a minute. And I read through, and by the way, Scott, did a little bit of research and read through the explanation as to how they were supposedly able to do what they did. And while all of it sounded good, I’m thinking to myself, okay, wait a minute, time out. It’s all open source, which I get, basically meaning they’ve probably already used something else as a base and then built on top of that. And I guess in the back of my mind, Scott, the entire time I’m thinking, hey, wait a minute, this is a Chinese company. who, by the way, China’s never known to be super truthful about things. They work off of the backs of everybody else. They’ve never really invented anything, per se, and I mean that sincerely. So how can they do what they claim to be doing, and who’s going to fact-check that and make sure that they can back it up?
SPEAKER 06 :
Yeah, well, so that’s the real question. So there are a couple of interesting things here, too. So maybe we should back it up a little bit, too. So Deep Seek, this story has been out there for a while. There have been a number of people that reported on this. I know like Deirdre Bosa over at CNBC did a story in early December. But so what I found interesting as from an investor and a fund manager positioning standpoint is this story came out on Sunday and this week, we’re seeing all the major technology companies in the U S report earnings.
SPEAKER 05 :
Right.
SPEAKER 06 :
And the big thing around that is people have questioned, or the guys are, have been shorting these stocks. There’s, there’s also, there is a record amount of stocks short in big cap technology companies right now.
SPEAKER 05 :
Okay.
SPEAKER 06 :
And the, the big thing that these guys complained about is all these companies are spending too much money and they’re never going to recoup their, their investment. Well, Deep Seek is able, according to this article or Deep Seek’s claim, they can train these models for $6 million versus the American companies are doing it for anywhere between $100 million and $1 billion. So that’s, you know, that would be good.
SPEAKER 16 :
That’s a significant savings when it’s all said and done. And again, like I told you, Scott, my first thought was, says who?
SPEAKER 06 :
Yeah, well, that’s it. So I got skeptical as soon as I saw that as well for a myriad of reasons, some of which you’re talking about and then the other stuff, the positioning stuff. So I did some digging as well. And so what’s interesting is the guy who backs DeepSeek, I believe his name is Liang Wenfang, he is a hedge fund manager in China. Imagine that. Yeah. Yeah. He may not have any stake in any stocks going into this either. He is a big investor in technology, though. It’s a quant hedge fund, and apparently it’s done well. He foresaw, he’s a big believer in AI, and he realized way back, I think it was like 2020, 2021, that he figured the U.S. was going to start putting curbs on GPUs being sold to China. He started aggressively buying these NVIDIA GPUs, the H800 in particular. Now, from the research I’ve done, it’s tough to nail down a number, but they range between $41,500 and $65,000 per chip. Yeah, $40,000 to $60,000 roughly is what I’ve understood. And so this guy supposedly acquired 50,000 of these GPUs before… these curves went into place. And so, you know, if we start doing the math on that, let’s say they were even, let’s just discount it, say that he spent $30,000 per chip because he bought some somehow in the black market in China. They were cheap, and that’s $1.5 billion of expense right there.
SPEAKER 16 :
Okay. That’s a little bit higher than what they were publicizing on Monday.
SPEAKER 06 :
Exactly. So to me, when you start doing a bunch of the back-end math and digging in, It’s like, wait a second, it costs $1.5 billion just to get the chips.
SPEAKER 16 :
That doesn’t count any of the other technology going into building, quote-unquote, their AI model.
SPEAKER 06 :
And the people and the hours, and this is like the fifth or sixth version of this AI model. So, you know, they spent multiple years, like you said at the start, getting to this point.
SPEAKER 16 :
Right. Meaning, and this is how I looked at it, Scott, and I was really skeptical to begin with. And I’m like, OK, well, maybe they did this. And I watched some of the explanations that came out. And there’s some folks out there that kind of broke it down and talked about how. You know, they have strung some things together and they’re not being quite as, quote unquote, accurate as maybe ours is. But it’s accurate enough. And I know I’m kind of paraphrasing here, Scott, but I read a lot of different things on this. And I’m like, OK, well, even with all of that. And even if they think it’s good enough, and by the way, for some things it might be, but for others it may not be, even with what they said. But on top of that, I’m looking at what you did. I’m like, okay, wait a minute, time out. There’s just no way they came along and strung together a bunch of gamer GPUs and made all of this happen at the level that they’re claiming. I’m just like, wait a minute, I’m calling BS on this. There’s just no way that happened. I’m sorry. Yeah. Yeah, it doesn’t seem believable.
SPEAKER 06 :
And so the tough part, too, again, back to what you said at the beginning, is sort of the track record with a bunch of the companies coming out of China. Remember back in 2022, some of their biggest companies in the country, like I want to say it was like China Life Insurance, a few others. There were five major companies in China that pulled off of the New York Stock Exchange. They delisted because they did not want to comply with U.S. accounting regulations. Right, right. They didn’t want to open up their books to show people what’s going on.
SPEAKER 16 :
Bottom line, most likely because it wouldn’t have matched what they’re saying.
SPEAKER 06 :
So when I moved back from New York in like 2007 to Baltimore— I went to work for this small broker-dealer, and we got invited to do a bunch of SPACs. Those are single-purpose acquisition companies for anyone unfamiliar. What they do is they raise a bunch of funds, then they go buy another company. It’s basically an IPO with a shell company, and then they buy another company. We got invited to do a bunch, but what these guys were doing was they intended to buy these Chinese companies that were out there. We were a fledgling broker-dealer. We wanted to make money, but We started turning down these deals, and I asked the sales guys and the head of the firm, I’m like, well, just out of curiosity, why are we turning these things down? And they said, well, we looked at the books of these companies they want to buy, and we don’t really have a lot of faith in what they’re telling us. And so sure enough, you know, within no time, a bunch of these SPACs went under because their books were shady. Hmm. And they were not straight up. And so then I did some more research, too. And there’s a Columbia Law School review blog that looked at 17,037 SPACs between 2003 and 2022. And what they found was the ones that performed really badly and didn’t do well at all were all SPACs that bought Chinese companies. Hmm. So there is a – unfortunately, like, again, so I know all these things and remember them and – You know, I remember the bad moments, too, with the good moments, unfortunately. But I saw this, and it immediately sets my radar off, knowing that kind of stuff. Oh, okay, so there’s a question.
SPEAKER 16 :
I mean, you’re a smart guy. You did the same thing that I did and really probably were thinking the exact same. I should have emailed you and texted you because you’re probably thinking the same exact thing I was at that exact same time. Why? I mean, we’re just two schmucks, Scott. I mean, you’re a lot smarter than I am. But at the end of the day, in comparison to a lot of these big hedge fund managers and folks on Wall Street and so on, we’re just a couple of schmucks when it’s all said and done. But if we could figure some of these things out, why couldn’t all of them? Because they didn’t. They sold off all kinds of stuff. Nvidia went way down. Other types of stocks revolving around AI went down. I’m thinking to myself, are you guys just that dumb?
SPEAKER 06 :
I think part of that, too, some of these people, some of this can be programs just reacting to headlines and stuff, which is ridiculous. But the other part is sometimes if this catches people off guard… The first question, the immediate response on Monday was, oh my God, what does this mean for all these models? Does it mean these tech companies are overpaying? Again, you start to sit through, you’re like, well, wait a second, this company’s been out there for years. Everybody in Silicon Valley knows about it. Clearly, these guys that are investing in big AI companies, models and programs or just an AI in general know about it, yet they’re choosing not to invest in that company and the products they’re rolling out. And there’s a reason why. So there are probably some fund managers that aren’t that deep in this, that are invested in like an NVIDIA, Microsoft, more importantly, NVIDIA and Broadcom, and they’re worried. So what they do is they shoot first by selling stock and ask questions later. So that way, if the situation is worse, and it winds up being, they have cash to reinvest. Instead of just sitting on it and watching it go down and doing nothing, they’ll be like, well, now the really bad news has come out and I’m screwed. So does that make sense?
SPEAKER 16 :
It does, and I think the other thing, and I’m pretty sure of this one, and it’s one of the criticisms I’ve got of a lot of folks that are in Washington making laws and so on, the majority of people, including the traders and folks that you’re talking about, And I’m not boasting here, Scott, but have far less understanding of how technology, computers, hardware, all of that works than I do. And yet these are the guys making decisions that literally affect the future of a lot of Americans day to day. And I just shake my head at that. I’m thinking to myself, you guys really aren’t this dumb when it comes to technology. But, Scott, unfortunately, they keep proving over and over again to me that they are.
SPEAKER 06 :
Yeah, this is true. I like to listen to guys. There’s this great podcast that I like to listen to, BG2, Boy George 2. It’s Brad Gerstner and Bill Gurley. They’re two big venture capitalists, two private equity funds. Brad Gerstner started with $3 million in 2008. His fund now manages $17 billion. And those guys, I guarantee you, they loved seeing this pullback and started buying everything.
SPEAKER 16 :
Yeah, because they know it’s going to come back.
SPEAKER 06 :
And they know this is just part of the process. We’re going to spend a lot of money up front to build the primary infrastructure that gets this going, which is what we’ve seen. But as this technology improves and gets better, the costs are just going to keep going to the floor. It’s sort of like I’m sure the first car that was built cost a boatload just going through everything and getting the conveyor belts operating the right way and knowing what to put on which and how to produce it.
SPEAKER 16 :
Always, Scott. I mean, I guarantee you when you look back at even the Model T with Henry Ford, what he produced first versus last, huge difference in cost.
SPEAKER 06 :
Yeah, so I think what we’re going to see down the road is, you know, as things like this, you know, maybe DeepSeat pushes more people in the U.S. that are working on AI to do it better, faster.
SPEAKER 16 :
Could be, and I appreciate what Donald Trump said, you know, along those lines, because, yes, we have to be better, faster, stronger than everybody else, and if there’s ways we can do that. Although, Scott, one of the first things I was thinking of when I read all these things that supposedly – you know, Chinese company had done, I’m thinking, okay, I get where you’re saying, and I get that you’ve cut some corners literally in how you’re making the language part of it work and how they’re doing their computations and what have you. And I’m like, okay, and there’s probably some things that that’s probably fine with, although there’s probably other things that we need to get AI involved into where, no, that computation needs to be much harder, much longer, much deeper. And at the end of the day, what you’re building in China won’t do that.
SPEAKER 06 :
Yes. Yeah, I think that’s right. And again, I think to what you’re saying early on, a lot of this could have used open source stuff that companies like ChatGPT or what is it?
SPEAKER 16 :
All the open source stuff, basically.
SPEAKER 06 :
Yeah, OpenAI. These guys already spent the money and built it, and then these guys were grabbing it. Correct. And so, yeah, if you’re doing that and you’re not using all those costs, sure, it’s going to be cheaper.
SPEAKER 16 :
Yeah, you’re building off of what somebody else already built.
SPEAKER 06 :
Yes, that’s exactly right. So my guess would be, yeah, we saw a panic that we probably shouldn’t have, and what we’re ultimately going to see is this is going to push the conversation. It’s a wake-up call for a bunch of people, but we’re going to wind up seeing this technology get better and get cheaper, and that’s going to push innovation, and it’s going to create margin.
SPEAKER 16 :
Agreed. Agreed. Can’t argue that. All right. How do folks find you, Scott?
SPEAKER 06 :
Yeah, sure. Go to LinkedIn, Twitter, or Substack. C. Scott Garlis.
SPEAKER 16 :
All right. In closing, looking to the future, and I know no one has a crystal ball, but what are things folks should be looking at if they’re thinking, yeah, I should probably invest in X? What would that be?
SPEAKER 06 :
You know, NVIDIA, it was an incredible buying opportunity the other day. Look at SMH, which is a semiconductor holders index, and owns a basket of semiconductors. This conversation is only going to keep growing.
SPEAKER 16 :
Agreed. Scott, appreciate you very much. Talk next week.
SPEAKER 06 :
Thanks so much for having me.
SPEAKER 16 :
I appreciate you very much. And, yeah, Scott thinks a lot like I do. I don’t appreciate it just because he does, but I think it’s validation that, yeah, Scott’s a common sense guy and really understands what’s going on and does things correctly, which I appreciate. Affordable interest mortgages next. If you’ve got a question when it comes to mortgages, Kurt’s always there to help you, including, hey, how do I get my credit score up? He can help you with that as well. 720-895-0500.
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SPEAKER 03 :
It’s time to leave your safe space. This is Rush to Reason on KLZ 560.
SPEAKER 16 :
All right, a couple of minutes left of today’s program is all, and Mexico, I guess, has decided also to go ahead and let some of their folks that should be there in the first place come back. A thousand or so, that number will continue to increase. And this is a question you have to ask yourself when it comes to Mexico and their leadership. Of all countries… Mexico should be behind what Donald Trump wants to do and the closing of the border, because all the open border has done under Joe Biden and his regime is make the cartel stronger. It has literally poured, and I’m not exaggerating, billions upon billions of dollars into the cartels in Mexico. And you would think the Mexican government, the head of, Would love nothing more than to have that money now not flowing to the cartels, making them that much richer and more powerful and so on. So you got to ask the question, is that really what Mexico wants or are they so corrupt that And so overrun by the cartels that they just don’t care. In fact, they’re on the side of the cartel and they’re mad because there’s now no open borders and that money itself won’t be flowing in. I know they’ve taken these particular individuals back. But because they really don’t have much choice at the end of the day, given what Donald Trump has said he will do if they don’t. So, again, you got to ask yourself the question, what’s really going on with leadership in Mexico? And are they really against all of the crime and things that happen inside the cartels? Or are they just so overrun by them that they don’t have any choice at the end of the day but to be on their side? And that’s probably a topic for another day, and I’ll maybe get some experts on that can talk more about that that know more about it than I. Have a great night, though, folks. This is Rush to Reason, Denver’s Afternoon Rush, KLZ 560.
