56. The Dawn of Trump’s America

25:45So having said that that's what they were going to do. And Trump just got frustrated with the case by case basis. There's 1500 cases. He doesn't want to look at the details of them. And he says, OK, let's just fucking let them all out. I mean, that's literally what Axios is reporting, that he just got fed up. I want to make this announcement that his priority was the day one shock and awe announcement on the J6 prisoners. And he didn't have the time or the patience to actually sort out the violent offenders from the nonviolent offenders. So he just decided he was going to let them all out. And look, in his mind, I think one of the messages of this week is the number of times that Donald Trump has spoken about 2020 election being stolen from him.

26:28and the insurrection at the Capitol, January the 6th, and how these people were grossly mistreated, it's still on his mind. He is still super preoccupied with this. And in his mind, those people were his people. They went to the Capitol in his name and therefore they couldn't have done anything wrong because he hasn't done anything wrong. And if they were acting in his name, that makes them heroes. Whatever they did, Whatever they did to police officers, whatever they did to Officer Fanon, as we described in the series, grabbing him outside, beating him with his own taser. He went into cardiac arrest at one point.

27:09That's fine because it was all done in Donald Trump's name. So that was one of the more shocking things that happened in Washington this week and which has left. And what's been interesting, just to talk about the Democrats quickly and how they're responding to this, the kind of crickets from Democrats, I think, has been pretty striking. They are still, and I've spoken to a couple of members of Congress just in the last Democratic members of Congress and asked them this question, you know, what's the plan? What's the pushback plan against Donald Trump on immigration? And those roundups are starting to happen, even as we're recording this on Wednesday.

27:45On immigration, the feeling is they got it wrong on the border. So they're not really going to push back very hard against the deportations. Potentially, if families start getting separated, you might hear Democrats pushing back. They don't like the idea of the cruelty of that, but they're keeping very quiet about that. And I spoke to the congressman from New York who you really like, who you singled out to me, Anthony, as somebody who's super impressive, Richie Torres. And I asked him, you know, what are you going to do to push back as Donald Trump announces all of these things? And the first thing he said is, listen, you can't get your hair on fire over everything, but you've got to push back on the stuff your constituents care about.

28:22And in his case, he said that's public safety. They care about public safety. So I'm going to push back on public safety. He said he is going to raise his voice about the release of people who killed cops on January the 6th or attacked cops on January the 6th because his voters care about the safety of police officers. So he sees that as related to what his voters care about. But Democrats are still in a position where they're figuring out how they take on Trump the second time around. I don't know if they have any really good plans. I don't know. Have you heard anything from Democrats that makes you think they are they know what to do?

28:55If you were their strategist, I haven't heard anything. But I would love to give the Al Pacino on any given Sunday speech as directed by Oliver Stone, where I blast these guys. Hey, guys, what are you doing? You lost the election by a half a percent. You're having this guy manifested at a landslide. It's like if Abraham Lincoln had a baby with Ronald Reagan and the baby's name is Donald John Trump. What are you guys doing? Snap out of it. Get your stuff together. Create an intergenerational transfer of leadership. Get Hakeem Jeffries, Richie Chores. You pick the leaders and go hard at this guy.

29:30OK, because 50 percent of the people, 49.5 percent of the people, they don't like this caddy. And there's another group. Remember one other thing about Donald Trump. With Donald Trump, you get the whole buffet table, Caddy. I tell my Wall Street friends, I know you like the low taxes. Oh, I know you like the pro crypto and you like this and you like that. But then you get the grift. Then you get the corruption. Then you get the J6 pardons. Did you know that J6 was my birthday, Caddy? I don't know. You probably didn't know that, but I just mentioned it to you. Is it? Wow, you've never mentioned that before.

30:05You keep that so quiet and modestly. You keep it very quiet. Yes, I do. I do. And I want to share it with you. But you know what J6 is going to be called now for the next four years? J6 is now going to be called Freedom Day. OK, so I was I was born on Trump Insurrection Day, but not now. It's now going to be called Freedom Day. So it's changing its name with the Gulf of Mexico. We're the Gulf of America and J6 is going to be Freedom Day. And the irony is that the people who were the perpetrators are now the victims. Exactly. They're the hostages, hostages. And the people who were defending the Capitol are now the aggressors.

30:44So Michael Fanone, who was one of the Capitol Police, he has now had to take out security to protect him from the people who have been released from prison. But Fanone says in the public eye in Trump world, he is the bad guy, not the people who attacked him. That is marketing genius. I don't know how they did that jujitsu. The GOP House members that were protected by those Capitol Police, not a word, not a word, supplicants. OK, so so this this has been an incredible story. The most formidable political icon of the last 40 years is Donald J. Trump. You can like him or you can dislike him. He hijacked one of the two traditional parties.

31:29He lost an election at the age of 78. He rose back to power. Most of it was due to malfeasance by Democrats not having a proper intergenerational transfer of power. Too much Lady Macbeth going on there with Jill and Joe Biden. And here we are now. He's back in the saddle wreaking havoc. I know we have to go to a break. Can we talk a little bit about the death penalty, though? The order directs the secretary general to take all necessary and lawful action to ensure that the states have enough legal injection drugs to carry out executions. This has been something that's happened. People are on death row, but they're saying they don't have the poison.

32:09They don't have the poison to kill the people, which is sort of a way of slow rolling the death penalty. And Trump is saying, no, no, no, we've got to make sure everybody has enough poison to kill these people. Three defendants remain on federal death row after Biden converted 37 of these sentences to life imprisonment. This strikes me as another of those get back at Biden executive orders. Yeah, exactly. But the reason he's bringing up the death penalty is that the death, I can prove to you, Caddy, and I did a lot of research on this when I was in law school, death penalty is racist. Because if I'm a rich guy, I can take a machine gun and kill 20 people, hire an unbelievable lawyer, and I'll never have the death penalty.

32:48But if I'm a poor black man in Texas, and I do the same thing, and I can't get the proper legal representation, organization i'm going to death row and you can just look at the empirical data it's not it's not done judiciously and it's a reason why we shouldn't have it but he's letting you know that he wants to bring it back it's sort of this old fashionism we're going back to 1947 yeah it's his way of appealing to the base and as you say there's an element of cruelty about that one thing that a smart political consultant said to me this week was that remember day one executive orders are basically a full-time employment shit for lawyers in America.

33:25So maybe your mother was right. You should have stayed being a lawyer because all of this, including that stuff on the death penalty and almost everything else is going to get litigated. The other thing, Anthony, that you and I have spoken a lot about during the campaign was if Donald Trump would go after his political enemies. I had a text from somebody who is actually out of the country, who is on his enemies list, who chose to be out of the country for inauguration day, who said that he has had a massive amount of online attacks just since the president was inaugurated. But more significantly, Donald Trump did sign an executive order asking federal agencies to investigate whether the Biden administration infringed on free speech.

34:10And the key bit of that executive order is that he's also then asking those agencies to propose remedial actions if they find evidence. So basically saying to the agencies, go and find out if anyone in the Biden administration behaved in a way that infringed on free speech, could be deemed illegal, and then let's see what we can do to get back at them. And I think that is the clearest sign we've had so far, that all of the talk we heard during the campaign about revenge and vengeance against Democrats or people that have proposed him, That's the one action that we see so far that Donald Trump has taken that suggests to me that this could be a real possibility.

34:52And if he does do that, yes, all the stuff about the Gilded Age of America, the booming economy, all of that is interesting and could be beneficial to many sections of this country. And his supporters will love it. But watch whether he goes after his political enemies, because I think for many people watching America from the outside, That would be a sign that this is a very different country from the country that they have known in the past. I'm upset at the Joe Biden pardons. Can I tell you why? I've moved higher up on the list, Katty Kay. You're going to have to come and visit me. OK, what the hell are they doing?

35:26I was like at the bottom of the list. Now I'm floating to the top of the list with all these pardons. Why have the Joe Biden pardons, which, by the way, every Democrat I have spoken to thinks were a terrible idea, his preemptive pardons of his family and have opened the door to Donald Trump saying, OK, well, I can pardon whoever I want because Joe Biden did it. The whataboutism that's going on in this town this week is extraordinary. But I don't understand why Joe Biden preemptively pardoning members of his family shoots Anthony Scaramucci further up Donald Trump's enemies list. No, it's the Mark Millies.

36:00It's the Mark Millies and the Liz Cheney's that he pardoned. Oh, those those pardons. Yes, I can see some people have fallen off the Joe Biden family members. Yeah. Yes, it's the enemy list pardons. Caddy, what's nice knowing you, though, is it's been it's been you've been a very pleasant podcast partner has been very nice knowing you. But I I told General Milley, I said, you know, I'm mad at you. He says, why is that? I said, you move me higher up the list. Yeah, but poor General Milley, he had his portrait taken down in the Pentagon. It had only been up for a couple of weeks. And within minutes of Donald Trump being inaugurated, they take down Mark Millard's portrait.

36:35Maybe they'll be doing that to Anthony Scaramucci, too. There's no portrait of me anywhere that I'm aware of. But, you know, it's just to me, it's just astonishing. And that, you know, when we talk about him, the abnormalcy of him, but we have normalized him, Caddy, because a lot of the stuff that he's doing is outrageous. If that speech was given 10 years ago that he gave at the inauguration, people would have been outraged. If these executive orders that he's given, many of which we think are suspect and not even constitutional, people would be, what are you talking about? But he's doing something, Cady, that you and I need to tell viewers and listeners.

37:12He is hurting the norms in the system. And we'll talk more about that in the break with the cryptocurrency nonsense that he's doing. But we live in a society that relies on people at the top to accept certain norms related to a democracy. And he is subverting all of those. Yeah, democracy is partly rules and it's partly norms and customs. And he breaks them time and time again. And that speech, by the way, not a single moment of grace towards his predecessor. He could have said, and I thank President Biden for having me for tea. That's all he needed to say. But with Joe Biden sitting feet away from him, he trashed the previous administration again, norm busting and a crueler and more harsh American political discourse as a result of it.

38:03We're going to take a break and come back and look at the crypto movements of Donald Trump and how he's making himself even richer and what that means for America.

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39:27Welcome back, everyone. We are going to get onto the subject of crypto and corruption in just a second. But there has been a lot this week that has made me think about January the 6th. The very fact that the inauguration took place in the same room of the Capitol where those rioters and insurrectionists were storming into having broken the windows, having beaten the police officers, it's just staggering. If you want a reminder, and I think it is worth everybody this week as we start the second Trump administration, reminding themselves of what happened on that day. This week on our special series on January the 6th, we are talking about the tick tock of that day from Donald Trump's speech in the morning to the rioters pushing against the windows, attacking the police officers, using batons, using all the weapons they had on hand, invading the inner sanctum of American democracy.

40:26It's really worth a listen. It will put this new administration back in context for you. You can get all the previous episodes as well, of course, on the restispoliticsus.com or wherever you find your podcasts. But do take a listen to it. It's particularly relevant this week. And if you want to listen to episode four straight away without the ads, you can do so by becoming a founding member of the restispoliticsus at restispoliticsus.com. We'd love to have you there. You'll also get extra episodes every week of questions and answers if you become a founding member. And we are already planning lots of fun new series for this year.

41:04So you can get those, too, if you're a founding member. That is the plug over officially. You and I were texting before inauguration day about the meme currency that Donald Trump announced just before he was days before he was going to be inaugurated as the 47th president of the United States. It's what's happened with that and why were you so upset about it? OK, so, you know, it's complicated. And so the brilliance behind this grift is that the American people, people in general, really don't understand it. You'd have to be a cryptocurrency enthusiast to really understand it. So I'll do my best to try to explain it here to our listeners.

41:44But, Katty, in the world of cryptocurrency, there are actual tokens that have some level of utility. Bitcoin would be one of those in my mind. Bitcoin is a fully transparent ledger. It started in 2009. It's now worth$105 ,000 per token. And basically what it is, it's an operating system to transfer money. We began the process of messaging to each other by the speed of light in 1840. That was the introduction of Telegraph and the Morse code. But our money at that time was moving by stagecoach and horseback, right? Silver or gold, bullion, moving across a country like ours in a stagecoach. The internet allows the money to be transferred instantaneously to move at the speed of light of our communications.

42:36And so Bitcoin represents property on the Internet that has this capability. And if you read, and I was with Neil Ferguson this week here in Davos, I'm a big fan of his. If you read The Ascent of Money, which is the history of money, how we got money and why money is a technology that we use to transfer a payment, a token, if you will, between us. It's a technology so that we don't have to barter with each other. We have this technology. It's sort of a ledger. It's a spreadsheet. I have assets in my bank account. I don't have gold bullion. Let's say I have a dollar in my bank account and I want to buy something from you.

43:15The dollar comes out of my bank account. It goes into your bank account and one dollar goes up in your bank account. So Bitcoin is really that. It's a distributed ledger, fully transparent on the Internet. And the reason it has value, it has all this immutability, all this scarcity related to money. Can I just jump in with a question? I read your book on Bitcoin, which was great and very helpful. And one of the things that you talk about there is how money is based on trust. Any kind of money is based on trust. And one of the things that people who are skeptics of cryptocurrency is, how do we trust it?

43:51And you make the point in your book that actually every fiat currency, the dollar, the Swiss franc, the euro is also all built on trust. But what does what Donald Trump has done do to our trust in cryptocurrencies like Bitcoin? Okay, so now this is the problem. So what was happened a few years back, and this is a little bit of a regulatory thing. And so the government in the United States, very anti-crypto, at least it was, and it was preventing certain cryptocurrencies from taking hold, and they wanted to push these cryptocurrencies through the security exchange. And the cryptocurrency community said, well, no, they're commodities.

44:33They should be regulated by the CFTC, the Commodities Futures Commission. And so what ended up happening is they started making these meme coins. Doge, D-O-G-E, is actually a meme coin. It's got a huge market capitalization in the cryptocurrency space. And it's just a replicative blockchain, doesn't have any meaningful value, but people trade it like it's a token. It's almost like a gambling token. And we're sitting here with Doge at$54 billion in market capitalization. And so the Trumps put out a coin before his electoral victory called World Liberty, And the coin failed. It didn't take hold.

45:15But two days before he's about to ascend to the American presidency, they launched another meme coin that they called Trump. And so the symbol, if you went on CoinGecko or any of these databases where you can get cryptocurrency prices, the symbol is TRUP. The Trump coin is trading at$7.7 billion, as you and I are speaking. But the fully diluted valuation of that coin is$38.7 billion. And Trump himself owns 80 % of that coin. said differently, he's created$25 to$30 billion worth of value in that coin. Now, why is that important for people to understand? You could create an anonymous ledger. You could fund it with billions of dollars.

46:07And you could go to Trump's coin and buy coins out of his treasury. That could be a potential clearing station for corruption. And it's a complicated thing to understand, but I need to shed light on it because this is some high level, crazy breaking of norms. And so this is a profiteering exercise by Trump and his family. They launched a Melania coin. Doesn't have as large of a market capitalization as the Trump coin, but that's still several hundred million dollars in capitalization. These coins are basically worthless, but to trade them in the marketplace. And so the idea is, well, it's going to go up.

46:53So let me buy it here. Other people will buy it in the expectation that it's going to go up. I'll sell it. And if you look at the chart since they launched this a few days ago, it looks like a very bad EKG. It's going up and down, up and down. But you can have players stepping into the market to buy that coin to unduly influence Donald Trump and his family. So if I wanted something from Donald Trump, say I'm the dictator of X country and I want some favorable deal from Donald Trump's presidency, this would be a way for me to get that deal. It would be. You know, there have been people that have gone to him and said, I bought shares in Troop Social.

47:36The symbol is DJT. Same kind of thing. I've done this, right? I've done that. And remember, remember that there was an uproar in the United Kingdom about Keir Starmer, I guess, getting gifted a few Taylor Swift tickets or something like that. I don't know what it was, but there's a big uproar. And so Trump has busted the norms and he's conditioned people to accept his grift. And then you have the Trump apologists where they'll say to you, well, that doesn't matter. He's pro-crypto. Hold on one second, because if he's pro-crypto, why would he do something, Anthony, that makes the reputation of crypto, which is already a little fragile for some people, but makes the reputation look more like it's a sketchy currency?

48:24Because that's him. He's grifting. He's going to grift likely several billion dollars off of this token. They've already printed for themselves$500 million they've taken in fees and token sales. So they've already made$500 million in the last week off the token. And he's grifting. And so it's hurting. So I said it publicly. It's on the record. I was in the Congress Center here in Davos. I was sitting alongside of Brian Armstrong, the CEO of Coinbase, a brilliant guy, soft-spoken guy. He's done great work at Coinbase, making one of the leading cryptocurrency exchanges in the world. He's very aggressively regulated, and he is tight as a drum in terms of handling the appropriate way to do this stuff in the industry.

49:12He's best of class. And he doesn't want to comment on it. He's obviously in a public company, but I'm in a private company. And so what I said to the audience here in Davos, the delegates here, I said, this really hurts the industry because if you're a 60 plus year old fuddy duddy, which I happen to be, but I happen to like crypto. But if you're a 60-plus-year-old fuddy that doesn't understand cryptocurrency or is new to the market and you hear about this Trump coin, it's going to color you negatively towards crypto. And it's going to slow down the regulatory process. And there's going to be flack now for Trump's people.

49:51The rumor has it that guys like David Sachs, who's his crypto advisor, didn't even know this was being launched. If you go on Crypto X and you read the commentary, even some of Trump's most ardent supporters, gentlemen by the name of Nick Carter wouldn't mean much to you, Caddy, because you're not in that industry. But Nick Carter is a big, influential, straight shooting sort of a guy. I really like Nick. He's pro-Trump because of the anti-crypto stance that Gensler took during the Biden administration. But he basically said that this Trump coin is a disgrace. I called it Idi Amin style corruption.

50:28I mean, it's really wild stuff that he's doing. And I think it was important for us to bring it up on this podcast. And I may have confused some people or maybe they don't fully understand it. But I'm telling you that he set up a clearing station where you could anonymously send money to him and his family through these wallets. If you're sending it anonymously, how does that how does that help? Because in a way, you want to send it not anonymously. You want to be public about it. You want him to know. Okay, so let's role play, Caddy Kay. Let's role play. Hello, President Caddy Kay. I created this anonymous wallet.

51:04I transferred it through a bank in Cyprus. The wallet number is 72654. Okay, Caddy, I'm going to step into the marketplace with this money. I'm going to buy Trump coin out of the treasury, which you, President Caddy Kay, can pocket. and I need you to do something for me. I need to shift policy in the Middle East. I need to shift policy in South America. It might be an anonymous purchase, but you make sure he knows. Yeah, yeah, yeah. Look, I gotta come meet with you. We're not gonna do it over the phone, but here's the wallet number. I created it. No one can really trace it back to me. Here's the money.

51:42Could we reinstate TikTok? Because you said that you didn't want TikTok. You got 80 of your fellow Republicans in the House to vote alongside of your opinion there, but I'd like you to change your opinion. Here's the money. Okay. And it's terrible. I mean, look, I mean, you know, you know what? It's terrible. And by the way, by the way, he'll claim that he's not doing that, of course. And he was laughing with the press yesterday. He said, oh, you're saying I made a billion dollars or a few billion. Well, that's just peanuts to these guys. Peanuts. He was trying to dismiss it. You're taking the platform of power and you are using it for aggressive personal gain, which is something that no other president did.

52:28Right. There's 47 presidents, but there's really not. Right. There's 45 presidents. Cleveland and Donald Trump were president twice. So you've got 45 presidents. Nobody did this. Nobody does. Even during the Teapot Dome scandal, the money didn't go to the president. It went to his lackeys. And so this is absolutely reprehensible. But we have silence. Because let me tell you something. I'm going to bully you into submission. You know, you're going to sit behind my family. You're going to give me hundreds of millions of dollars of donations. And you're going to sit behind my family. You're going to sit ahead of my cabinet members.

53:07Okay. And so this way I can show everybody your supplicancy to me. And oh, by the way, if you're an elected official and you're a Republican, you're going to stay silent while I'm grifting for my family. Otherwise, I'm going to hit you with a ray gun and knock you out of office like I did to Liz Cheney and Adam Kissinger. What this reminds me of is something that Bob Rubin, who was Bill Clinton's Treasury Secretary, and Larry Summers, who also worked for Bill Clinton back in the 90s, said to me last June, which is that everybody is focused on fascism and autocracy in America. If Donald Trump wins the election, what they should really be focused on is the Latin Americanization of the United States.

53:53This becomes a corrupt oligarchical system where you pay to play. And the Oval Office becomes a place where the highest bidder gets what they want. But you just have to pay up. You pay up and the money directly will benefit Donald Trump and those close to him. Just before we leave, there's one thing that's been pretty interesting. We've spoken a lot about Elon Musk. And earlier this week, Donald Trump announced Stargate, this$500 billion investment in artificial intelligence in order to get America ahead in the AI battle with China. And he had with him the titans of artificial intelligence, including your friend Sam Altman, standing there in the office with him in the White House as he announced this before the cameras.

54:45And within hours, Elon Musk, who is no fan of Sam Altman's, trashed Sam Altman publicly on X, saying he knows for a fact that Sam Altman does not have the kind of money to invest in Stargate that Donald Trump had just announced. And I wondered, I spoke to somebody here in D.C. who said, listen, this is the kind of thing even Elon Musk cannot afford to do. You've just had the president of the United States standing there with Sam Altman announcing an endeavor and Elon Musk throws cold water on it, on X. I don't know what Elon Musk is thinking, whether he thinks he's the most powerful person in Washington, D.C.

55:26Maybe he's buying all of those jokes that are going around that it's President Musk and Vice President Trump. But I think this is the kind of thing that could get him into trouble. And it shows that for all of the harmony, we're coming in tough. This is an administration that owns a lot of problems now around the world and has significant dissent and conflicts within itself. So, Cady, it's probably not well known by many, but Elon and Sam started ChatGBT. Elon put$50 million into the enterprise and the enterprise was supposed to be non-for-profit. Sam decided to switch the enterprise to a for-profit company, and it caught Elon off guard.

56:13He's a very competitive guy. He didn't like it, didn't own enough of it. And of course, he's now created his own XAI, which has raised billions of dollars and is now a competitor to chat GBT. And that's where the fight really is. And so it's interesting that Elon is hitting it with both barrels. It was more of a ego thing than anything else. But he claims that Sam lied to him. So let me let me ask you something. I know we have to leave, but I'll be brief. You know, when I when I got my badge for the White House, it was a blue badge. And Trump didn't like the color. They now change it to platinum.

56:51So what does the what does the badge give you? It gives you access to the White House grounds. If you have a blue badge, your White House grounds the West Wing, the residency, the first floor, and then you get access to the old executive office building. If there was an orange strip on the top of the badge, you had access to the president's residence, his personal home upstairs. And Elon Musk got a platinum badge, which basically gives him access to those things. And the rumor is that he's going to have an office in the old executive building. And Trump just signed, as you and I are speaking, an executive order to create this temporary organization known as Doge.

57:31But Elon Musk will be the CEO of X, Tesla. There's other companies like Neuralink and these other companies that he's the CEO of. And I guess the question I have for you, because you're a Washingtonian, this is a violation of many different ethical rules and many different self-interested things. And just by the way he's tweeting about Sam Altman, you know he's going to use the sword of policy decision making against his adversaries. And so the question is, will anybody say anything or will this now be the norm that CEOs of large companies, trillion dollar companies can get badged by the president, hang out, create a department to affect governmental policy while they have economic interest scaled in size like this?

58:16What do you think happens? Any uproar or this is going to be OK? I think the problems come from among themselves. These are all very powerful, very wealthy people who have very much their own agendas. They're not there to serve Donald Trump. They're there to serve their own interests, potentially their shareholder interests, but mostly their own interests. And if they start fighting amongst each other, then that becomes a problem for the administration. And I don't think Donald Trump is going to like it necessarily if Elon Musk is trashing on something that Donald Trump himself has just promoted.

58:53I mean, that's just like saying, Donald Trump, you're an idiot. You've just announced this thing that is not viable. I mean, Elon Musk could have put it in that language. He didn't use that language, but it wasn't far off actually saying that. And he did it within seconds. I think he's getting a little ahead of himself. Let's see. Elon Musk, carry on behaving like this, and your days with that platinum badge may be numbered. okay we are going to leave it there um thank you very much good place to leave it on the prediction that elon musk is getting ahead of himself thanks very much for listening everybody we will be back of course next week we'll be back on sunday as well for our founding members with our exclusive question and answer for them we've got some great questions coming up this week so do tune in for that if you're a founding member but thank you from me katty okay and we will see you next week.