Hi everybody. Welcome back to the show. Now, on this episode we unpack how the US government is pressuring foreign Nations to approve. Elon musk's starlink in exchange for favorable trade terms, why developing countries are using starlink licenses to deflect tariffs and how this strategy complicates us diplomacy amid growing competition with China, in global internet
infrastructure. Also, we're going to explain why the state department the naming starlink in official cables and what role from allies are playing in these efforts and how regulatory pressure Blends would geopolitical goals, and we're all going to examine how these moves are being interpreted by Foreign leaders especially in Africa and Asia and what this means for start links expansion plans. Welcome to the Elon Musk podcast.
I'm your host will Walden Now, on March 28th, 2024 officials and less that though, awarded Elon Musk Sterling a 10-year set, like internet license. Now, just two weeks earlier, the Trump administration had imposed a 50% tariff on their exports. To the US, the decision came during early stage negotiations, over a new trade agreement between the two countries.
The lethal Communications Authority hosted starlink Executives. In a meeting shortly after the Tariff announcement, internal memos from the US state department revealed that leso hoped the license would demonstrate Goodwill during trade talks. Now the key will see that the move showed intent to welcome us
businesses. Specifically starlink now that pattern has repeated and at least seven countries, since Trump's return to office, starlink struck distribution deals, in India and gain Traction in Somalia, Pakistan, Bangladesh, Vietnam and the Democratic Republic of Congo and potentially others. These deals often coincided with new tariffs or economic pressure from the US according to internal diplomatic cables reviewed by The Washington.
Post US embassies in State Department officials have actively lobbied for Starlight approvals and foreign Nations Secretary of State, Marco Rubio, signed at least two official Communications Instructing us diplomats to promote satellite firms naming, starlink explicitly. In a March 28th. Action Memo Rubio said, Global regulatory support was essential to preserving Sterling's first mover advantage in one such case, India's Fast Track Star
Lake regulatory process. While also renegotiating trade terms, with the US according to International sources familiar with India's decision, making Indian leaders viewed starlinks entry as a lubricant for the talks though, not formally.
Part of trade negotiation, starlinks access was strategically positioned as a gesture toward Washington Rubio's. Diplomatic memos frame, Chinese and Russian satellite services is threats to US National Security. The argued that American firms needed help, entering Mark gets before, competitors gained footholds officials cited by name in nearly every single memo even as they promoted a general preference for us settlers Services, the Trump White House tonight, any conflict of
interest related to musk's involvement musk donated to a 77 million dollars to Trump aligned candidates and currently leads the US Doge service though. He announced plans to step down the White House said, the only priority in trade deals was protecting American economic interests. However, the Optics around musk's political influence, have
created some tension. Foreign officials are finding it difficult to separate us official interest from you as musk's business Ambitions. And analysts point to the timing and coordination between two trade pressure and starlight, license approvals as strong signals of implicit pressure. Now in Cambodia the connection between tariffs and starlink approvals was even clearer on April 2nd. Trump slept the 49% Tariff on Cambodian Goods. The next day us business represented in Cambodia urged.
Local officials to offer starlink access and duty-free entry for Ford vehicles to restore trade ties. Now even before the Tariff though, The embassy documented Cambodia is consideration of Starling as a trade balancing
tool, cables. Dated March, 28th, showed local officials were exploring Sterling access to Signal alignment with the US government and the embassy noted, the Cambodian government wanted to promote Boeing and starlink to of economic penalties Meanwhile, in Mali Embassy staff reported the local authorities were building a regulatory framework to bring starlink in to the country. Embassy Personnel said they had already identified a company preparing to launch a local Sterling franchise.
Now, the memo noted the embassies internal deal team was actively assisting the process. And in Turkey, Embassy staff, delivered, talking points directly from Rubio's memo to senior space agency, officials. Turkish Regulators had already expressed interest in services, like Sterling and Amazon's project Kuiper and the cable recorded the meeting and described it as part of an ongoing us effort to push satellite internet the diplomacy. There's other similar campaigns underway.
And other countries have pledged to continue to follow up on. Starlink musk satellite business has enormous Financial stakes in this International expansion, according to quilty space for specializing and satellite marketing research, internet company, starlink could generate one billion dollars annually. For just 1% of India's Broadband Market comparable, growth, potential, existence of Latin America in sub-Saharan Africa.
Now the state department of the United States as a longstanding interest in Satellite based internet access under President, Biden secretary Anthony blinken. Signed a cable supporting the low earth orbit or Leo said, like vendors as alternatives to traditional isps the cable issued in. December Cent, 50 US, Embassy is already used Leo systems and more would follow Lincoln's cable did not favor.
Starlink exclusively. It said that department would expand access to other vendors as they became available. However, since Trump's return, diplomatic cables, increasingly referenced. Starlink by name in urge officials to advocate for its Market entry, wqa more of the center for Global departments that African nations are
approving. Starlink licenses more frequently under Trump. Than, during the previous administration, he explained that many African officials perceive musk's interest as deeply intertwined with us diplomatic efforts. Now that perception he said affects how countries make licensing decisions. Now for every day people in these countries though, starlink offers faster internet in places where traditional Broadband just doesn't exist governments facing pressure to improve
connectivity. See Starling as a shortcut to digital accents, but these choices are being made under Trade stress, which raises questions about severity and transparency for American citizen. The story, reveals how foreign policy supports certain private companies that hold political leverage, taxpayer funded, diplomacy being used to sheep deals that enrich a few individuals. Why you have advancing geopolitical goals? Whether or not starlink
performs. Well, in these countries, the business is winning access through methods, tied to trade negotiations, not just open markets. Now, the strategy. Also, reforms how China's Tech expansion is, reshaping US foreign policy. The United States sees the Telecom race with China is a zero, some contests, and by tying Starling to trade deals, the US government is actively prioritizing internet. Structure as a strategic resource while no formal deals.
Have yet been signed since the April 2nd, tariff announcements, the groundwork for trade link. Concessions is being laid through technology access Each country, they Grant Sterling a license sends a message to Washington that it is willing to play ball. The balance of power in these negotiations is tilting toward whoever controls connectivity.
Elon Musk now has his own city in Texas SpaceX is private launch site in Boca Chica Village, has officially become a city named Starbase after residents, voted 212 to 6 in favor of incorporation. Nearly all voters were SpaceX employees or family members since the company owns.
Most of the homes in employees. Most of the people living in the area, this vote turns, what was once a sleepy Coastal Village into an officially recognized municipality lighting entirely by people who work for Elon Musk. Now this episode will cover Starbase how musk made it happen, why some people are celebrating it, why others are protesting breakdown, the vote who's now in charge and what it could mean for public land acts as environmental concerns.
And how companies might take control of entire communities in the future, the creation of Starbase also raises a huge question, what happens when a private Corporation becomes the government Thanks to our amazing community members. Like you, we've reached the top 15 of spotify's video podcasts. The top 10 audio podcasts on both apple and Spotify for the tech category. So you all make this possible. If you want to support us more, check out our patreon.
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Thank you so much. Elon Musk now has his own city in Texas, spacex's Private launch site in Boca Chica Village, has officially become a city called Starbase after residents, voted 212 to 6 in favor of incorporation. Nearly all voters were SpaceX employees or family members since the company owns. Most of the homes and employees.
Most of the people living in the area this vote turns, what was once a sleepy Coastal Village with a few people living there into an officially recognized municipality, led by people who work for Elon Musk. Now, this episode we're going to cover what star base is, how musk made it happen and why some people are celebrating It. While others are also protesting, we'll break down the vote who's now in charge and what it could mean for public land deck, assess environmental
concerns and how companies might take control of entire communities in the future, the creation of Starbase has a big question attached to it. What happens when a private Corporation becomes the government Elon Musk has talked about building a city in South Texas, for years. Now, we've done it on Saturday voters, mostly SpaceX employees approved turning Boca Chica into the city of Starbase.
The town covers just one point, five square miles, but includes the SpaceX launch site for Starship and that's the massive 400 plus foot tall rocket. That Elon Musk hopes will take humans to Mars. I want to go back a few years right after the pandemic, I went to Starbase and I lived there
for around a year. I was covering Starbase and everything happening there when they were building the initial Starship, I was on the side of Highway 4 every single day, in the 110 degree Heat. Filming videoing live streaming them. Completing the first ship and booster and putting it on the pad. Now, let me tell you this. They are Far away from everything. The closest city is Brownsville Texas and it's about 30 minutes away you have to go.
Way down a desolate Road and there's nothing there. So, building spacex's Starbase into an official City, you might have thought, maybe they were encroaching on a lot of people, but they really were not. There were only a few people living there when they're making this into its City. So, Take that into consideration when you learned a little bit more. But the city elected, its first mayor, who's Bobby peden, who has worked at SpaceX.
Since 2013, two City commissioners were also elected both with close ties to the company, and all three ran unopposed. There were no public debates. No, local forums and no traditional campaigning, the move gives musk more control over roads, zoning and local Services. SpaceX says this will help them build housing, and infrastructure for employees.
Something County officials have previously blocked now with their own City, they can improve what they want faster, and with fewer outside or restrictions, but not everyone supports this Protesters have gathered in nearby Boca, Chica Beach, the day of the vote, local activists environmentalists and members of the Carrizo tribe of Texas. Say the beach and surrounding land are being destroyed each rocket launch requires evacuating the whole area and residents, say the losing access
to places they've used for Generations. And musk is not commented on these concerns though, but the new city is already pushing from more Authority. A bill moving through, the Texas legislature, would let start be officials who are actually musk's own employees decide when to shut down a public beach. During the weekdays, if it passes SpaceX won't need County approval anymore to close the
beach for racket tests. They can do whatever they want to. And this sets a dangerous precedent, the city is entirely populated by people who depend on SpaceX for their jobs and housing. That means the local government serves the company not the people Starbase now operates, like a private company town, with real, political power. And musk is not the only Tech figure with these ideas though. Mark andresson and read, Hoffman are funding a similar project in California, and Peter Thiel.
Once backed plans for floating cities, but Elon Musk is the first to actually figure this out. He got a city recognized staffed by employees in designed to serve a private companies needs. Now. This players alliance between private business in our government Starbase. Now, controls roads utilities and soon. Possibly the beach, that means SpaceX can shape the laws any way that they want. There are transparency laws though in Texas, so the city has
to follow public records rules. But oversight is minimal. If there are no independent voices in power, the big risk is that other companies can do the same thing. If this works for Elon Musk, it's likely others will follow a tech, billionaire, could build a Workforce Town, gain control of local, rules and shape. The community that exists solely to serve one business. And now Starbase is a real City. Its run and owned and built by the world's richest man.
Let me know. What you think in the comments if you have comments on your podcast app, what you think of this? Do you think it's a good thing? Do you think incorporating the city will help Elon Musk and SpaceX get to Mars faster? Well, they have less red tape to go through in order to test Starship which could push them faster and faster to build building hundreds of these Rockets to get to Mars. Let me know in the comments. Hey, thank you so much for listening today.
I really do appreciate your support. If you could take a second and hit this subscribe or the follow button on whatever podcast platform that you're listening on right now. I greatly appreciate it.
Helps out the show tremendously and you'll never miss an episode and each episode is about 10 minutes or less to get you caught up quickly and please if you want to support the show, even more go to patreon.com slash stage zero and please take care of yourselves and each other and I'll see you tomorrow. Why is Jeff Bezos cashing out about four point?
Eight billion dollars in Amazon stock and what is that say about his future, Amazon's Outlook in the timing of his move to Florida. So Jeff Bezos has submitted notice that he will sell up to 25 million shares of Amazon by May 29th 2026. The public filing made with the Securities and Exchange Commission. States, the sales are part of a pre-arranged trading plan, initiated on March 4th at Amazon's current share price. The potential sale amounts to about 4.8 billion.
Now this comes just one day after Amazon posted its first quarter results which while strong on paper stirred new concerns about what lies ahead Bezos who is still Amazon's largest shareholder with over 1.5 billion shares. As a February has already sold large blocks of stock before. But this latest disclosure raises new questions.
Not just about Bezos, but about the shifting Financial realities inside, one of the most influential companies of all time, by Amazon's earnings reporter, arrived late, Thursday and beat expectations. In several categories, Revenue reached one 1 5 5. 7 5, 9% increase from the same period. A year ago, and net income surged to 17.1 billion or 1.59 per share, outpacing, wall, Street's expected, 1.837 per share. Now these numbers confirm that
Amazon's core businesses. E-commerce, Cloud advertising are still delivering but the stock barely moved shares closed with just a 0.2% bump trading at 190.62, dollars on Friday afternoon and that limited reaction reflects. What investors are still trying to understand, how Amazon will handle the uncertainty, stemming from political pressure, in international trade volatility, the much of the concerns on new terrorists, introduced by Donald Trump's White House.
Trump's measures could affect Amazon supply chain and pricing structures report service this week. The Amazon was planning to visibly show customers the cost of tariffs on the website. Now that detail set off alarms for Donald Trump and he personally called Jeff Bezos ambesonne later clarified, that it was not making such a change, but the incident Illustrated love of scrutiny.
Now shadowing Bezos and his company, a basso has a History of liquidating, large volumes of Amazon stock to fund his other Ventures 2023. He sold 13.5 billion dollars worth of shares the first time he had done. So since stepping down to CEO in 2021 and then included two major sales, one of February involving, 50 million shares, another in July covering, 29 million more in those transactions were both worth billions and worst strategically timed. Now, one aspect of the timing
caught particular attention. Bezos officially moved from Seattle, Washington to Florida, are on the same time. So sales now Washington State implemented, a 7% capital gains tax in 2022 and at Bezos had remained of Washington. Those sales would have resulted in nearly 949 million dollars in
tax liability. And while he never publicly sighted the tags as the reason for his relocation public records, show that he did not sell any Amazon stock in 2022 or 2023, while living in Washington, Florida has no state income tax or capital gains tax. The timing location change. In stock sales, paint a picture of carefully.
Calculated Financial strategy. Now, the new trading plan filed in March allows Bezos to spread the 25 million share sale over a span of more than two years and the structure, suggests some more gradual exit compared to last year as compressed schedule. But even at a slower Pace, it still adds up to a large dollar amount. It also signals that Bezos is not retreating from liquidating pieces of his Amazon stake, you need to feed continues to hold a
billion shares in the company. And Jeff hasn't been in day-to-day control of Amazon since 2021, when Andy Jesse took over a CEO but it's Financial moves, still send a message just
specially. When they follow big corporate events or aligned with major political regulatory developments after stepping away from Amazon Bezos has devoted his attention to Blue origin Aerospace company and the 10 billion dollar Earth fund, he launched to address climate change in biodiversity still active, in Philip, the Epic efforts including the day one fund, which supports education and housing initiatives and underserved communities.
And selling shares allows him to fund these Endeavors but it also naturally invites scrutiny. I'd be selling 4.8 billion dollars worth of stock people want to know why and where it's going. Is he making a personal pivot? Does he anticipate headwinds for Amazon was he simply capitalizing on a favorable tax and marketing environment.
Now the reality could be a combination of all three but when the world's second richest man moves billions out of the company, he founded observers pay attention. There's another detail here that matters. Bezos adopted the trading plan on March, 4th a full month before Amazon's q1 earnings report timing. Ensures the sale. Complies with SEC rules, governing insider trading under rule 10, B 51.
Executives can set up pre-arranged sales to avoid accusations that their trading on material non-public information. These plans are meant to instill public confidence that such sales are routine and not opportunistic. Now, the muted reaction to Amazon's earnings suggests that, even big profits are not enough to dispel anxiety about trade, friction, political intervention, and global economic shifts and bassist
decision to sell more shares. Can amplify that anxiety, the stock sales last year came during high points, in Amazon's evaluation now. This year's announcement arrives, amid growing volatility in a different tone in Amazon's forward guidance. Now, what sets this round of sales, apart from those in 2023 is the broader context in 2023, the sales. Followed a market rebounded, coincided with Bezos has moved to Florida.
This time. Amazon is facing renew tension with the White House and structural uncertainties in its supply chain. Where the tariffs will stick or How Deeply they will affect, Amazon's cost structure remains unclear, but Bezos making this move now suggests, he wants flexibility and a potentially more turbulent business climate. The sac filing didn't outline specific dates or mounts. For each individual sale, simple lays out the maximum resales shares and maybe sold by May 29th 2026.
Lack of a detail. Calendar is a market, May face sporadic moves as a trades unfold. Now, in the end bases, his plan to sell 4.8 billion dollars in stocks. It's a move that he's making that strategic, whether the signals Point per slam bishan political calculation, or corporate uncertainty is preparing for what comes next, he's doing it with his own money. And his own terms. Hey, thank you so much for listening today. I really do appreciate your support.
If you could take a second and hit subscribe or the follow button on whatever podcast platform that you're listening on right now, I greatly appreciate it. Helps out the show tremendously and you'll never miss an episode and each episode is about 10 minutes or less to get you caught up quickly and please if you want to support the show, even more go to patreon.com slash stage zero and please take care of yourselves and each other and I'll see you tomorrow.
Tesla, stock price. Fell nearly 25% in the first four months of 2025 investors. Watching the slide wonder whether the company has a plan. If its CEO, Elon Musk leaves or Feast stays in keeps doing damage unless Wednesday.
The Wall Street Journal reported, the Tesla's board had reached out to multiple executive search firms to start building a short list of potential successors, and according to the story, at least some test, the directors were exploring how to replace Elon Musk on that Revelation lit. A match under a question that's been quite quietly simmering for years. What is Tesla without Elon Musk?
Now the report created immediate attention inside Tesla's leadership hours after publication, Tesla board chair. Robin Dunham posted a denial on X. She said the journal was erroneously claiming the testis board had contacted recruiters for a CEO search. They said this is absolutely false. Now, Dental added that this clarification had been sent to the Press before the story even ran, but our statement left room
for interpretation. She denied action from the Tesla board but not that any individual directors may have reached out on their own. now, this ambiguity fuels and already pressing concern, If Tesla's leadership hasn't begun, considering what life looks like after musk, the Running Blind into a critical future. Elon Musk is both Tesla's greatest asset and its most unpredictable liability, the Stock's performance still bullying, but his presence is
known. But increasingly, it's personal behavior is dragging the company until vital territory. A musk is shifted from Tech Mogul to political combatant. It become a loud voice for Far, Right causes openly supporting Donald. Trump publicly criticizing the federal government in antagonizing Democratic officials. The shift has turned off, many of Tesla's most likely buyers liberal climate Focus consumers, who prefer clean energy and efficient transport to
libertarian rhetoric. These political stunts have cost Tesla. More than just Goodwill though.
They've hit the bottom line. Car sales are slowing, investors are getting nervous and the people more responsible for maintaining faith and Tesla's brand is too often making headlines for everything, but the business and at a time when EV Market is tightening, and competition is getting tougher, and all the tariffs that are happening, Tesla is still trading at a stock value in wildly out of sync with its
actual sales performance. And the core problem for Tesla's board is that Elon Musk is the reason the company stock trades at levels. Other automakers could only dream of now, as of this week, test this price to earnings ratio. However, is around 167 that's more than 20 times which General Motors trades at now. Musk has managed to sell the idea that Tesla isn't just a car maker. It's an avatar for the future.
The illusion keeps the stock inflated and that illusion depends entirely unmask continuing to project division, people believe in. It's not new though. For years ago, a business school Professor described Tesla to us as the mother of all meme. Stocks, the stocks performance is always relied more on musk's Cult of Personality than the
company's fundamentals. Tesla often behaves, more like a social media phenomenon than a stable manufacturing business and Retail investors treat musk like a prophet not just a CEO as long as he stays loud and provocative, a portion of the market stays loyal, but that loyalty has its limits when musk bought Twitter in 2022 and turned it into a political and cultural way to speak. His mind Tesla's shares took a hit when he launched his Department of government
efficiency, the stock dropped. Again, public trust in musk is an constant while his, depending on how extreme his latest move is, when those wobbles turn into sharp downturns, Tesla pays the price and so do its shareholders. The dynamic is created a dangerous Loop for the board
though. Musk does something outrageous, Tesla suffers, but if they push back the situation could have gave him worse, they fire him, the stock would completely crater, and if they try to Reign him in, he might walk away or retaliate, No one on the board seems eager to challenge. The one person who makes their company worth what it is. At the same time, musk's personal Behavior. Raises serious questions about his capacity to continue leading
the company for some people. His physical health is unclear. He rarely sleep, and he has openly admitted to recreational drug use. He has claimed without evidence that he is the second, most targeted individual for assassination after Donald Trump. And at public events, he has appeared distracted or disoriented. It's not a stable foundation for
a multi-billion dollar. Enterprise now Tesla's financials tell one story, but musk's Antics, tell another over the last year, test, the stock has generally trended upward them, might seem like Vindication. But the growth masks erratic tips, the kind of instability that must bring us to the brand can't be priced in Forever. At some point, the market may stop giving him the benefit of the doubt. They can happen.
If his political integuments grow more toxic, or if the public gets tired of his Acts, It was also the matter of government oversight, when a trump White House and power musk has enjoyed a regulatory leniency. For instance, the administration recently rolled back crash reporting requirements for autonomous vehicles. A move that directly benefits Tesla.
But this favorable treatment might not last if Democrats take back the house or when the presidency in 2028 they get just decide to start investigating Tesla safety record or musk's use of political power for private gain that possibility. Alone should be enough for the board to consider succession planning. It's not just politics. That make a transition plan necessary, eventually musk will
leave one way or another. He might get bored and he might move on and take all of his money with him. And if Tesla doesn't have a plan in place for that moment, I could face a crisis far more damaging than any single stock drop. Now, the question of course, is who could replace Elon Musk? Finding a new CEO isn't just about business Acumen or leadership skills.
It's about Charisma. It's about who you are and how you act Tesla, doesn't need a traditional executive, it needs someone, who can keep that idea alive. Someone who can maintain investor enthusiasm. Even when car sales are flat or when profit margin sync, this put the word in a difficult situation. Standard executive search firms, may not be useful here traditional CEO candidates are measured experience and discipline. That's not actually, what keeps
Tesla stock inflated. The next leader has to be able to generate Buzz to sell police to play the markets like a showman. They need to be more like a YouTube personality than a Fortune 500 veteran. The board might be better off, looking at figures like Ryan Cohen who led games stops memes. Stock Friendzy or Adam Aron of AMC who wants appeared in a viral video in his underwear to drive up investor morale, that was absurd ass. As it might actually be closer to a Tesla needs to survive in
its current form. Even social media provocateurs, like cat turd which is right-wing influencer, might make more sense in this weird stock market reality than a veteran from Ford. Now, that's the real challenge. Tessa is created a structure. That depends on a person who resists structure musk's unpredictability is the foundation of the company's valuation planning for his departure is like trying to blueprint a wildfire, that Paradox has led the board to accommodate nearly every whim.
He has, had over the years, they've absorbed the risk because the reward has always come The math might change if musk continues to alienate one side. If the government starts scrutinizing, his moves, if the market turns on him more permanently, the company could be left with no margin for error. And with out someone ready to step in Tesla, may find itself, Stumbling In The Dark Now, Tesla isn't just a company. Isn't this Ford or Chevy or whatever?
So what are the most visible? American manufacturers, the past decade help Define the electric vehicle movement and inspired a wave of competitors. Now, if test the falters, the effects won't be limited to shareholders, though. We can Tesla could shift public perception of EVS themselves. Delaying broader adaptation. I would also affects workers both at Tesla and across its Supply. Chains, thousands of jobs depend on the company's continued
success. They've musk's Behavior, starts triggering bigger, Financial shocks. Those jobs could disappear communities, that rely on tests as factories would feel the blow and suppliers with these business. Now, the damage wouldn't stay contained. That's why the boards refusal to be transparent about succession planning isn't just a question
about corporate drama. It's a potential economic risk Tesla's, too large and two Central to the EV markets to be led by someone who refused to share the wheel. The board owes it to everyone involved. To take that seriously. And to look around to this feature depends on more than one man's Christmas in the board has a responsibility to prepare for the day. When that Charisma, no longer holds what happened to the two trillion dollars in savings that Elon Musk.
Once promised to pull from the federal budget, like a rabbit out of a hat. And where is the detail plant? Where are the receipts? And why are Republicans accelerating a tax overhaul with without waiting for the supposedly enormous cuts, the Elon Musk swore would materialize? Also, why is no one in Washington? These questions out loud? Are they talking about it? I'm back in the fall musk captured headlines, with sweeping claims.
He had discovered a way to cut an almost unimaginable 2 trillion dollars in waste Fraud and Abuse from the federal government. Now, that figure was not backed by any detail, but budgetary work or itemized list. But it was politically useful, you gave the Trump campaign, the illusion of a balanced fiscal policy, aggressive tax cuts paid for not by gutting, social programs, but by eliminating inefficiencies later, the math didn't hold up.
Must revise is estimate down to one trillion dollars, but even that wasn't viewed as realistic by budget analysts. Despite the concerns musk held firm in interviews, he described uncovering, massive fraud with social security benefits going to the deceased. He claimed, and a wide array of shady transactions involving non-profit groups. His message was Dire. If these savings were not realized soon the federal government risked going
bankrupt. now, the Trump Administration is going ahead with tax cuts anyway, Treasurer, secretary Scott dissent has set an ambitious deadline urging Congress to pass the new tax legislation by July 4th. Two months away. The Proposal carries a cost estimated at 500 billion dollars per year and that's before factoring and additional exemptions giveaways. Such as a plan to eliminate taxes on tips, the administration is given no indication that it plans to wait for musk's projected savings.
Before moving forward, these tax cuts are happening regardless of whether or not any budgetary offset exists, there is no one trillion dollars in hand, there's no final audit, there's no finalized policy to reduce spending accordingly that raises questions. The savings haven't been realized in the spending cuts are nowhere in sight. How does the government plan to pay for the tax cuts? Short answer is it doesn't and what's taking shape is an
unfunded text cut. The federal debt will absorb the cost at least for now or the next 10 years. The price tag could exceed five trillion in according to estimates from lawmakers, such as Senator Rand, Paul. And Paul, who is one of the few Republicans voicing concerned put it bluntly. Yes, weather. Washington was serious about cutting spending or whether it had quietly accepted ever-increasing debt. It was simple though. There's no plan to pay for the tax cuts. They will just add to the
deficit. Musk's plant to deliver a trillion dollars and savings through Doge hasn't come close to deliver it. On its website Doge claims to have uncovered just 160 billion dollars in savings. The numbers misleading, though, independent review by the BBC found that only 62 billion dollars of those cuts are actually itemized within that 33 billion have documented receipts. That means he actual confirmed savings maybe less than 3% of the trillion dollar figure, the
musk continues to promote. There's also a problem with how these cuts are defined budget, experts point out that many of the so called savings appear to be one time items like the sale of government assets. A building sold for 10 million dollars, can't be sold again next year. It's not a reoccurring cut to annual spending. It's a temporary boost in Revenue, presenting it as ongoing saving misleads the public and Congress alike.
The route of the skepticism lies at a long history of similar promises musk is far from the first person to suggest that cutting waste Fraud and Abuse can balance the federal budget and the 80s. David Stockman, who served as Ronald Reagan's budget director made similar claims in his Memoir the Triumph, the politics Stockman later admitted.
The cuts never came That's because the vast majority of federal spending isn't discretionary, it goes to programs like Social Security, Medicare Medicaid, military spending and interest payments on the national debt. This spending is hard to touch with without major political consequences that makes any sweeping plan to cut 15% or more of the budget has muscles suggested incredibly hard to
execute even if you eliminated. Every non-defense, discretionary program is still wouldn't reach musk's Target. Further, undermining musk credibility is the way his team has used data, the government accountability officer the GAO did Issue an estimate suggesting federal fraud May account for as much as 5% total spending. Then number was never meant to be definitive. It was presented as a rough range, influence heavily by pandemic era, fraud in 2020.
And 2021 when emergency spending programs were rushed through Congress. The GAO didn't endorse the claim that have a trillion dollars is routinely stolen from the federal budget. In fact is the agency's OWN director told reporters that high-end estimate, reflects outlier conditions. Now, in a more typical year, the level of fraud is much lower, and even when fraud does occur, it's difficult to recoup those losses without extensive
investigation and enforcement. There's another issue that undermines must claims the federal government already has. Dozens of oversight bodies and anti-fraud mechanisms in place. There are 17 separate inspectors general for various departments. There's also a strong whistleblower reward system. Now last year alone, the federal government paid 400 million dollars in whistleblower awards for help uncovering 2.4 billion
dollars in fraud. If a trillion dollars in fraud was really sitting in plain sight, it's hard to imagine that no one noticed it before Muslims to have uncovered, a fraud of unprecedented scale but he has not produced. Whistleblower testimony detailed reports or referrals to law enforcement if whistleblowers really knew about fraud at that level they could be entitled to tens or even hundreds of billions of dollars in rewards yet.
No one has stepped forward. The contrast between mus Grant claims and the underwhelming evidence, make this more than a political sideshow. Speaks to a serious issue about how public policy is for him to tax cuts and deficit spending, have long term consequences, selling them with fictional. Offsetting savings is a recipe for financial instability, and for ordinary aromatic story matters, because it affects national debt in Economic Security.
Tax cuts are passed without funding future Generations. Could face the burden higher deficits often lead to higher interest rates inflation or reduce spending on vital programs. In the end voters will have to pay for today's choices either through taxes or through reduced Services. Moreover, the idea that government waste is so massive. It could fund both tax cuts and deficit reduction, gives people a false sense of security. It diverts attention from the real fiscal challenges that the
country faces. So social programs like Medicare and Social Security projected to face long-term funding. Shortfalls Pretending those issues can be fixed by cutting. Generic waste, doesn't help them at all. People also need to understand how these kinds of narratives affect policy making when lawmakers rely in exaggerated claims. It creates an atmosphere where transparency and realism are seen as optional. That undermines trust in both government and private
institutions. So far, musk's team has offered no credible evidence, that is proposed, savings are real, or repeatable, they provided big numbers and vague stories. That's not enough though. If the administration is going to pass large tax cuts based on supposed budget savings, it owes the public a full accurate accounting of where those savings are and how they'll be realized Republican. Leadership, isn't waiting for those answers though, they're
moving forward. Now, the sentence and others are betting that, the political momentum for tax cuts is strong enough to carry the plan over the Finish Line. Even without musk's trillion, dollar cushion, the savings ever do materialize. That'll just be a bonus. It's not a requirement anymore, though. The disconnect between campaign rhetoric and actual policy is very glaring. Text Cuts were supposed to be paid for by cleaning up the federal budget that clean up his
barely begun if it ever will. And instead, the cuts will be funded to get old-fashioned way. With borrowed money. In musk for his part continues to insist, he's on to something. He's got it. He says the fraud is there. He's fighting to see if the country from bankruptcy but he has yet to deliver results on anything like the scale that he promised and that's the story. The tax cuts are happening. The spending cuts aren't in the two trillion dollar Miracle musk
promised. Its forgot. The Trump Administration is moving ahead with expensive test Cuts, without the savings that must promised. And so far, this is no credible evidence that money has ever existed. Let me know what you think about this in the comments down below. Also give this video a like thumbs up if you like this kind of content. Take care yourself in each other. And I'll see you in the next one.
In India has ordered X to block access to more than 8,000 accounts or face legal punishment for its local employees. Now, X complied with the directive, but called the action censorship noting that it received little to no evidence or justification in most cases. This incident comes amid growing India.
Pakistan tensions, following a deadly attack and Kashmir and raises serious questions about how far governments can go in, pressuring platforms, to restrict content X confirmed on Thursday, that the Indian government issued multiple executive orders demanding, it block thousands of user accounts in India, the platforms Global government Affairs. Team stated that India threatened significant fines and imprisonment for the companies employees based in the country.
If it refused to imply, Well expertise cashmere killed 26. People triggering renewed military friction between India and Pakistan and the Indian government's response has included digital censorship of accounts, tied to Pakistani figures media and public figures. Now, officials accused these accounts of sharing what they termed as provocative or inflammatory content. The Indian ministry of information and broadcasting also took action against Pakistani content on YouTube
blocking. Over doesn't Channel since the Kashmir incident, these included, major Pakistani news outlets with wide followings. Now, the government said it acted under National scrutiny laws or a security laws but did not make specific posts public in its jurisdiction.
Now meta separately restricted, a major Muslim news page on Instagram within India. The pages founder said the removal, came at the government's request again with little explanation, this signals that the censorship is extending beyond x to other Global Tech companies operating in the country. Now, exit is strongly disagreed with the Indian orders but stated Ed, no realistic choice but to follow them to protect its employees.
The company claimed, the move amounted to direct censorship of both current and future content. It also emphasized that it had received no clear legal explanation from many of the accounts flagged. Now, exported out that several cases the government failed to identify any individual posts that violated Indian law. The company said, many of the orders lacked supporting documentation or contacts. Now, this lack of transparency has made a harder for the
platform. The challenge, the government's actions under Indian law. Now the issue is especially complex because of Elon musk's growing business ties in India. Musk met with the Indian Prime Minister Modi in April to discuss deeper, cooperation between his company is an Indian tech. Sectors, Tesla is planning to enter the Indian car market with showrooms, and Delhi, and Mumbai, and starlink is a waiting regulatory approval to launch satellite internet services in India.
This puts Elon Musk in a difficult situation. And one hand ex claims to stand for free speech and open internet. Access on the other hand musk has business priorities in India, they require him to maintaining working relationship with the Modi government.
These recent action raised a pressing question, can Global Tech platforms maintain their principles while trying to expand it to country as with strict information controls the Indian government's approach in this case shows that it expects platforms to comply with out, detail legal processes or justification, the situation creates direct tension between company policies and National regulations for users in India.
This means that because it limits the content, they can access online based on opaque decisions for journalists and human rights groups. The suppression of international and Regional news sources. We can accountability Now, for platform employees though, this introduces legal risk, tied to decisions, they may have little power to change.
The Indian government's legal pressure on X May set a precedent for future interactions with foreign tech companies if the current pattern holds any, social media firm that wants to do business in India, will have to accept the possibility of orders to block content without detailed jurisdiction. Now, the risk is that this normalizes government control over what users in India are allowed to see or say on line X is legal options in India.
Remain on clear, the platform has limited to appeal, executive orders issued, under India's information laws. Specially when National Security is cited. Musk's companies may push for policy changes Beyond closed doors but public challenges appear unlikely. Now, the conflict between India's censorship orders and musk's Global business plans will likely continue though the Modi government wants tighter control over online narratives.
So special during moments of heightened, National tension. Musk's platforms want to maintain their presence in one of the world. Largest markets, but that requires compliance within recently, rigid demands. Hey, thank you so much for listening today. I really do appreciate your support. If you could take a second and hit this subscribe or the follow button on whatever podcast platform that you're listening on right now. I greatly appreciate it.
Helps out the show tremendously and you'll never miss an episode and each episode is about 10 minutes or less to get you caught up quickly and please if you want to support the show, even more go to patreon.com slash stage zero and please take care of yourselves and each other and I'll see you tomorrow.