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The CHIPS Act - More Billions to China? What's the Best Private Search Engine? Private Messengers

Craig Peterson - America's Leading Technology News Commentator

Release Date: 07/29/2022

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More Episodes

The CHIPS Act
More Billions to China?
What's the Best Private Search Engine?
Private Messengers

Well, they did it. Yeah, it's no longer called "Build Back Better," but it's now the "Inflation Reduction Act." Imagine that. Reducing inflation by causing more inflation through massive spending. And then there's the the "CHIPS" act and, uh, yeah, government's coming for our wallets again. Oh, and this is bound to make things worse. 

[Following is an automated transcript.]

The semiconductor industry has been hit hard by the lockdown.

[00:00:21] Of course, it just totally destroyed supply chains all over the world. Makes me wonder if this wasn't intentional, but we are dependent on not just us manufacturers for things like our cars, through our computers, through harvesting machines that farmers need. We are dependent on foreign. Nations to make our chips, our chip sets that that's kind of a bad thing.

[00:00:47] When you consider right now, there is a whole lot of stuff going on over there in the south China sea, which of course is where, what is made. You've probably heard about this before, where in fact, most of our chips are made at least a higher catchups that's a bad. because that means that a place like Taiwan, which has had serious problems with water shortages, and you need a lot of water in order to make chips, it has had all kinds of political instability.

[00:01:21] Of course, they had the same locked. Down messes that the rest of the world had, and that just really messed them up. And then you look at what we did and you had the companies like Ford and GM. These are, I'm mentioning these guys, cuz they're the obvious ones, right? Chrysler, who all said, oh, people aren't gonna buy cars.

[00:01:40] So we're going to cut back our orders. And remember the whole, just in time thing back in the seventies, I remember. Ever so well, it was like, wow, Japan. They are the model of world economies. We've got a. Everything that they do over there in Japan. And the big thing that we took from that was just in time inventory.

[00:02:03] Oh my gosh. I mean, I don't have to have a warehouse with parts and order a train load at a time. I can just order as many as I need and have them arrive just in time. I was watching a documentary on Volkswagen who has, I guess it's the biggest factory in the world. This thing's absolutely amazing. And while they're assembling the cars, the parts that are needed show up just in time, there will be parts that show up that morning from subcontractors, and then they move through their systems there at the factory.

[00:02:39] And then they end up right there at the person who needs to install. Minutes before it's needed. Now that's kind of cool. Cuz it cuts down in your costs. It lets you change a vendor. If you need to change a vendor, if you don't like some parts, you don't have to, you know, get rid of a whole train load or return them all.

[00:02:56] You just have to return that days, but it introduces some very. Serious problems, especially when there are supply chain problems, you know, we've been living in a world that that has just been very, very easy. I'm not gonna say it's too easy, but it's been very easy. We don't have so many of the problems that we used to have way back when, like what 50 years ago really.

[00:03:23] We have these problems where we do a lockdown where a country locks down, let's say Taiwan lockdown, and, and we didn't, and we tried to manufacture things you wouldn't be able to. And part of the theory behind the way we interact with other countries is that it will prevent war. You see if we're a completely separate country and we decide, uh, that, uh, you know, just leave us alone.

[00:03:50] And let's say China decided that they wanted some of our territories or some of their neighbors over there in the south China sea, et cetera. China could just go in and do it. But if we're trading partners, if they rely on us in order to keep their economy going, then we're not going to go to war with them.

[00:04:12] And they're not gonna go to war with us because we both need each other. That's been a, a mantra now for quite a few decades with countries worldwide. Of course, Ukraine and Russia are an interesting combination because Russia needs Ukraine. For quite a number of different supplies, food, and, and other things.

[00:04:32] And Ukraine needs to a lesser extent, Russia, as well as a market, but it, it provides food for a worldwide market. It it's kind of crazy, but that's been the theory. The theory is, well, let's bring. everyone close together. We'll put our hands together, we'll lock them and, and we'll sing, uh, I want the world to buy a Coke, right.

[00:04:56] Or whatever that song was. You you'll probably remember that song, everyone standing around in the circles or whole all the way around the world. Now it's a nice theory. And, and I like it. I like the fact we haven't gone to war, even though we've got a, I guess you could definitely call it a European war going on, but in, in fact, It does cause these types of problem problems, we're seen, we copied the Japanese just in time inventory and that messed things up because those parts are not arriving when they're supposed to be arriving and you no longer have a warehouse full of parts.

[00:05:33] So now you just can't. Can't do anything right now. Now you're in really ultimately big trouble. So what's happening now is Congress decided to pass a, um, I think they're calling it. What was it? A deficit reduction act or something instead of build back better. Because, uh, or no inflation. That's what it was.

[00:05:54] Yeah. This is gonna get rid of inflation because we're increasing taxes and , I, I don't get it. Why would Congress think that increasing taxes would bring more money into their coffers every time it's been done? Yeah. There's a little bit of a bump initially, but. It drops off dramatically. If you want to increase revenue to the federal government, you lower taxes.

[00:06:19] Every time that's been tried pretty much. It's absolutely worked by lowering taxes because now people aren't trying to hide the money. They aren't do doing things. Uh, like moving their businesses out of the country, even Canada and the rest of Europe has lower corporate tax rates and that's part of what they're going for.

[00:06:42] But the manipulation that appears to have happened here is that they wanted to pass this chips act. And the chips act is another example of the federal government helping special interest groups at the expense of you and I, the expense of the taxpayers. So this special interest group came to them and, and they carved out some 50 something dollars.

[00:07:08] I think it was yeah, 52 billion in grant and 24 billion in tax credit. To the us semiconductor industry now at, at first glance, you look at that and say, well, okay, that's, that's actually really good because what can happen here is the semiconductor industry can use that money to build plants here in the us to build fabs chip Fabrica fabrication plants.

[00:07:33] I know I can talk and, and yeah, they probably could. And that could be a very, very good. But the devil is in the details. Yes. What else is new here? Right. So this, uh, last minute by partisan agreement that they agreed, they weren't gonna do build back better because of what mansion had said. Right. I, I'm not gonna support that cuz it's just going to increase inflation and increase our debt.

[00:08:00] And by the way, our federal government. Is barely gonna be enough to discover the interest payments on the debt. You know, no principle at all, which is an incentive for the federal government to cause inflation because then the federal government can pay back that debt with inflated dollars that cost them less.

[00:08:20] And then, uh, there goes the debt, right. And they can talk about how great it was. But if you are retired, if you're looking at your retirement account, With the type of inflation we have, which isn't the nine point, whatever that they've claimed in reality, if you use the same methods and metrics that were used in the 1980s where they're saying, oh, it's been 50 years, 40 years since we had this type of inflation.

[00:08:46] No, no, no. We have never ever had this type of inflation in modern America. Because in fact, the inflation rate of use, again, those same net metrics is supposedly in the 20% range. So what that means is the federal government's able to pay you back 20% less. Then they actually borrowed from you because of that inflation.

[00:09:12] It's it's just incredible. So here we go. Some $77 billion going to the us semiconductor industry, but, um, there's another little trick here that they played on all of us and that is. The lobbyist from the semiconductor industry who, by the way, themselves are spending tens of billions of dollars to build new fabs new plants.

[00:09:35] They're spending it out of their own pockets, not out of our pockets already. Okay. But they lobbied and Chuck Schumer introduced, uh, uh, cute little thing. Cute little thing. It, the bill had said, yeah, we have to use this. For American interest basically. Uh, so he removed that. So now yeah, those tax dollars that are supposed to rebuild our chip industry, they can be used to help China.

[00:10:01] Yes, indeed. They have already penciled in some of that 77 ish billion dollars to go to China. Yeah. Yeah. Isn't that great. I, I thought China was part of what we're trying to protect ourselves from here. Certainly. not, not as a, you know, a hot war sort of a thing, but frankly, as our biggest competitor in the world, it is incredible.

[00:10:29] The us share of chip manufacturing globally has dropped from 12%. From 37%, just 30 years ago. Okay. So we've lost two thirds of our pros. If you will, on the world market in making chips, Hey, you should have received this, uh, on when was it this week? Uh, Wednesday, Tuesday, uh, my weekly insider show notes.

[00:10:56] There's links to a great article in here. From the semiconductor industry, themselves talking about what is going on, what really happened. And, uh, don't worry. It's only more than a trillion dollars. And then this on top of it, it's only another 250 billion. Don't worry about it. You'll be able to pay it back.

[00:11:18] Yeah. Yeah. stick around. We'll be right back.

[00:11:25] I don't know if you've heard of digital exhaust, it's kind of a new term. And it's talking about the things we leave behind the cookie crumbs, if you will, not cookies and browsers, but that's part of it. We're gonna talk about the browser you're using and the search engine.

[00:11:42] We have a lot of choices when it comes to browsers. We've talked about it before, and if you'd like a copy of my browser, special report, of course, this it's free.

[00:11:52] I wouldn't mention it. If it wasn't here and you can just get it by, go by emailing me, [email protected] You actually can't just get it, but I'll be glad to email it to you or we'll have Mary or. Send it on off to you? Me M E Craig peterson.com. Well, people have been worried about their data. Many of us have been worried a very long time, and then remember the whole Cambridge Analytica scandal.

[00:12:23] It's amazing to me, how stuff gets politicized. I'm shaking my head. I just can't. People because bronch Obama got everything on everyone, on Facebook for his campaign. Not, not a beep, nothing. I, nothing. He had everything on everybody and Cambridge Analytica and there was just given to him by the way. And then Cambridge Analytica, uh, decided, okay, well here's what we're gonna do.

[00:12:47] We're gonna make. This little program, people can play it. We'll we will, uh, advertise on Facebook and then we'll gather data on people who are there on Facebook and we'll use it for orange man. Bad Trump. Yeah, this will be great. And so the the exact opposite of what they did with president Obama. When he got all this information on tens of millions, I think it was actually hundreds of million.

[00:13:15] People, uh, they decided this was bad. and they started making a big deal about it. And so a lot of people at that point decided, Hey, uh, what's happening here? What, what is going on? Should, would they have my information? Because remember this is an old adage. You've heard it a million times by now, but it bears repeating.

[00:13:39] If you are not paying for something you or your information are the product. And that's exactly true. Exactly. True. If you are using Google maps, for instance, to get around, to do your GPS navigation, you are the product cuz Google is selling information. They collect information, right? That's what they. Do and you might have noticed recently you probably got an email from Google saying, uh, we're gonna be flushing, uh, your location, or at least some of your location information soon.

[00:14:13] Did you, did you get that email from Google? I, I got it right. And I don't use Google very much, but I, I obviously I need to, I need to know about Google. Google's good for certain things, and I understand what it's doing. But it decided all of a sudden after the, again, left stuff, right. People were all worried that because there was no longer a national law on abortion, uh, by the way, there never has been a national.

[00:14:46] Law on abortion. And in fact, that's what the Supreme court said. You can't make up a law in the court. You can rule on the application of the law in the court. They've gone, they've stepped over that boundary and decided they can rule on whether or not there should be a law. And so the court said, Hey, listen, this is a, at this point, a state's rights issue, right?

[00:15:11] The 10th amendment to the us constitution, uh, the state should decide this. And the Congress didn't act there. There's no federal law about this. So the, these rulings were bad and people say, oh no, that's terrible. It was the first time it's ever no, there've been over 200 times where the Supreme court changed its mind.

[00:15:34] Think of the dread Scott decision. If, if you even know what that is, well, you guys do cuz you're the best and brightest, but these people complaining probably have no clue about any of this stuff, right? None at all. So they're all upset because now, oh my gosh, my golly, um, because Roe V Wade, et cetera, was overturned.

[00:15:55] Now they're going to be tracking me. Because my data is being sold. Cuz you remember that's how they came after these January six protestors, right. That were down in, in Washington, DC by using the GPS data that came from the apps that were there on their phones. Yeah. And, uh, that's also how it was proven that the election.

[00:16:19] Uh, may have been stolen, but certainly had substantial fraud because they were able to buy the data. Look at the data show. What was pretty, obviously the, uh, acts of at least a thousand people that were completely illegal in ballot harvesting and. Box stuffing. Right? So again, GPS data, you can buy it. The federal, government's not allowed to keep data on us.

[00:16:49] It's not allowed to spy on the citizens at all. Right. So what do they do? They go to these same data brokers and they buy the data. I sold it now. Well, we're not tracking, but people are you kidding me? We would never do that. But they're buying the tracking data from third parties. So they are tracking. Oh no, no, it's not us.

[00:17:11] It's it's other people. So now they're worried. Well, if I go to an abortion clinic, are the state's attorneys general. That do not allow abortions in their states where the law does not allow it. Are they going to buy data and see that I went to an abortion clinic, even if I went to an abortion clinic out of state.

[00:17:35] Now you can see their concern on that one. Right? So a again, now all of a sudden they're worried about tracking data. I, I just don't understand why they trust the government on one hand and don't trust it on another hand, I guess, that. People say right. The ability to hold two conflicting thoughts has truth in your mind at the same time, but they're concerned and it's legitimate.

[00:18:00] So what happens. Google decides we're not going to, uh, keep location data on you. And that way none of the attorneys general can ask us forward or subpoena it cuz we just don't have it. And that was all because of the overturn of the court ruling on abortion, the federal court. So it, it, to me, it it's just so disingenuous for these people to only care about privacy when it's about them.

[00:18:36] And I, I, I, again, I, I just don't understand it. My mother is that same way. I know she doesn't listen to this, so , I can say that, but it it's, uh, absolutely absolutely incredible to me that, uh, that, that happens. So what do you use. There there's a number of major search engines, real in the, in the world.

[00:18:59] Really what you're looking at is Google. It's like the, the 800 pound gorilla out there. And then you also have Bing Microsoft search engine. There have been a few that have come and gone. There's some that I liked better. Like I loved Alta Vista much better. Because it had ING algebra operations that you could do much better than Google.

[00:19:23] So I've ended up with Devon, think that I use now for searching if I need to, uh, to get real fancy searches going on, but I gotta mention duck dot go. Now it got a bit of a black eye recently, but the reality is if you want to keep your searches, private duck dot go is a way to go. Well, we talked about the top 100 hospitals in the country and how they were tracking you using Facebook or Google, uh, trackers cookies.

[00:19:59] And they would know, oh, you just registered an appointment with an oncologist or, or whatever it might. B right. Which is private information, duck dot go does not have any tractors on it. They do not keep a history of what you've been searching for and they do not sell that stuff to advertisers. Now behind duck dot go is Bing.

[00:20:23] But Bing does not get access to you. Only duck dot go does, and they don't keep any of that. So check it out online that kid's game used to play duck dot, go.com. Obviously I don't, uh, don't make any money off of that. Oh. And by the way, they have apps for Android and iOS and browser extensions stick around will be right back and visit me online.

[00:20:49] Craig peterson.com.

[00:20:52] I got a question from a parent whose son was serving over in the middle east and they were asking what was a safe messaging app to use. And they asked about what's app. So we're gonna talk about that right now.

[00:21:08] There are a lot of different messaging apps that people are using and they all have different features, right?

[00:21:17] Uh, there have different ways of doing things and the top are WhatsApp. Facebook messenger. Why would anyone use that? Uh, we chat again. Why would anyone use that vibe line telegram and IMO, which I'm not familiar with? This is according to ink magazine, the top seven messenger apps in the world. So why would people use those?

[00:21:47] Okay. So let's, let's just talk about them very briefly. The, the two top ones in my mind that I want to talk about, but WhatsApp has 2 billion active users. It's the number one messaging app followed by WeChat, which is a Chinese messaging app with 1.2 billion. Users and WeChat is also used to make payments.

[00:22:12] And they've got this whole social, social credit system in China, where they are tracking you deciding whether or not you posted something or said something in a chat that, uh, they don't like. And so you, you just, you can't get on the train to get to work and you lose your job, right. Yeah, they, they do that regularly.

[00:22:32] And there are people in the us here that are trying to do very similar things. This Congress has, uh, not been the best. Let me put it that way. So should you use that of. We chat now, obviously, no, the next one is Facebook messenger also called messenger by meta. And it has close to a billion users. And again, they are watching you.

[00:23:01] They are spying on you. They are tracking what you do, WhatsApp. I I use for, uh, one of my masterminds. The whole group is in on what's happened. I'm okay with that. Nothing terribly private that I'm worried about. There, there are things that are said or discussed that, that I'm not, uh, Perhaps happy that they're privy to, but in, in reality, WhatsApp is pretty good.

[00:23:29] Now you have to make sure that when you're using something, something like WhatsApp that you have to turn on their privacy features. For end to end security because that's been a, a historical problem with WhatsApp. Yeah. They can have end to end encryption, but you have to turn it on. So what is end to end encryption and why does it matter?

[00:23:57] Well, end to end encryption means if you are sending a message to someone or someones. They have, obviously have to have the same app that you do. And when it gets to the other side, uh, they can decrypt. So anyone in the middle. We'll just see a whole bunch of encrypted data, which just looks like trash. If, if it's encrypted properly, there's no real distinguishing, uh, portions to it.

[00:24:30] If you will, or identifying factors that it's anything other than just random data, really good, uh, encryption does that, right? It does a, and. compression first and, and then messes with, we're not gonna get into how all of that works. I helped way back when to put PGP together at, uh, Phil. Zimmerman's pretty good privacy.

[00:24:55] I actually still used some of that stuff today. And then PGP became G G, which is the GNU privacy, uh, G G and is well worth it as well. But that. Um, exactly what we're talking about. We're talking about regular messaging apps that regular people can use. I do use G G by the way, those of you who email [email protected], if it's actually me responding to you, it will be.

[00:25:26] A message. That's cryptographically signed by G G so that you can verify that it was me and it wasn't Mary, or it wasn't Karen. So I, I do that on purpose as well. All right. I'm sorry, wander around a little bit here. WhatsApp is pretty commonplace. And is pretty good. Well, WhatsApp, as I mentioned, end end encryption.

[00:25:50] But it's using the encryption from another project that's out there. And this is an open source project called signal. If you want to be secure. End to end if you don't want to leave any digital exhaust around use signal. It's very, very good. Um, Mo what is his name? Um, Moxi Marlin spike is the guy that founded it.

[00:26:15] He ran that company for quite a while. It's a foundation. And, uh, as I recall, early 20, 22, he stepped down as the head of that foundation and other people have taken over, but he's even threatened to, and I assume he actually did build in some things into signal. That will make some of these Israeli programs that are used to crack into cell phones.

[00:26:43] It'll make them fail. They'll crash because of bugs in their it's. Well, again, that's not what we're talking about right now, but signal. Again, if you're gonna send a message just like with WhatsApp, the other person, the receiver has to have signal on their device signals available for smartphones again, Android and iOS, you know?

[00:27:07] What I feel about Android, which is don't use it. You're much better off. If you don't have much of a budget buying an older model iPhone, they're gonna be a lot safer for you. So signal, it will also run on your windows, computer, or your Mac, the same thing with WhatsApp, by the way. So WhatsApp more common, not the worst thing in the world for privacy signal, less common and definitely very good for privacy.

[00:27:37] Now I mentioned apple here. I use max and I have ever, since they switched over to a Unix base, they actually put a mock microkernel and a free BSD user land, if and kernel on top of them. Um, the mock microkernel. So if, if you're total geek, you know what I'm talking about? It's designed to be safe and secure from the beginning.

[00:28:02] Whereas with windows and with Android, it was shoehorned in the security, the privacy, right. It just wasn't there. So what should you do? Well, I, I, as I mentioned, you should be. Apple iOS devices. I'm not the world's apple fan. Okay. Don't get me wrong, but they are a lot more secure and the max are also very secure again.

[00:28:32] Nothing's perfect. Uh, they have not been attacked as much as windows computers because of course, windows is more common, but having worked in the kernel and the network stack on both windows. Uh, the actual kernel, the actual source code of windows and Linux and BSD and system five. So all of the major core, uh, Linux distributions over the decades, I can tell you that.

[00:29:05] The Unix world is far, far more secure. Now you don't have to worry about it. People look at it and say, well, what should I use? Well, if you are a geek, you should probably be using Linux. I do use Linux, but I, I will admit my main workstation is a 10 year old Mac. 10 years old. Uh, how long do your windows machines last?

[00:29:31] Right. And, and it's still working great for me very fast. Still. It's a great little machine and we still have Mac laptops that are, uh, 20 years old. So they, they are designed and made to last same thing with the phones, but they can be more expensive. So look at refurbed, look at older models because it will save you.

[00:29:55] You can be in the same price range as windows. You can be in the same price range as Android, and you can have much, much better privacy and security stick around, cuz we'll be right back. And if you sign up for my email list, you'll get my free insider show notes every Tuesday or Wednesday morning.

[00:30:17] We're gonna talk about electric vehicles right now and what the wall street journal is calling the upside down logic of electric SUVs. And you know what? I agree with them here, but where are electric vehicles today and where are they going?

[00:30:34] Electric vehicles are an interesting topic because in reality, we're not ready for them.

[00:30:43] Our grid is not set up to handle electric vehicles. We are crazy what we're doing right now. Shutting down power plants. Germany is bringing nuclear plants that they had. Down back online. They're not fools. Nuclear is the cleanest right now, uh, source that we can possibly get don't fool yourselves by listening to people that tell you that, for instance, the solar cells you put on your roof are green because they are.

[00:31:14] Not highly toxic, the manufacturing, distribution, and disposal of those things, California, we talked about this a couple of weeks ago has a huge problem now because 90% of those solar panels on people's roofs are ending up in landfills and are leaking toxic metal. into what little, uh, underground water supply California still has left.

[00:31:42] And that's not just true of California. That's everywhere. So we are depending on more electricity, when we actually have less electricity, we're shutting things down. Look at Texas, right? They're oh, we're we're trying to be green, green, green, green, green, and people complain about Texas being conservative.

[00:32:01] It's not, it's just very independent. They have their own electric grid. The only state in the nation that has its own electric grid. That's not tied in. To anybody else. The whole rest of the country is composed of two grids. So if one state isn't producing quite enough, they can potentially buy it from another one here in the Northeast.

[00:32:24] We bring some of the power down from RI Quebec LAA, Leno. Over there in the north, right from the LG projects that they have up there. Of course it's from hydroelectric dams, but we, we exchange it all. We move it back and forth. But we're shutting down some of these relatively clean sources of energy, even cold now with all, all of the scrubbers and stuff.

[00:32:54] But if you look at nuclear, particularly the new nuclear, it is as safe. It's far safer than burning, uh, natural gas that so many grids burn look in New Hampshire, doubling doubled. It doubled the cost of electricity in new H. because we didn't bring on the second nuclear reactor in Seabrook. Right. And we're burning natural gas to generate most of our electricity.

[00:33:27] It doubled, it? It's absolutely crazy. The cost, the things that are happening in Washington and locally, like in New Hampshire, like in Texas, like in so many other states are making our lives much worse and. To top it all off. Now they're pushing electric vehicles, which again are not green. They are not safe.

[00:33:53] They are hazardous to the environment in so many ways, but particularly. By their manufacturing. So if consumers and businesses really cared about the carbon dioxide that they're emitting, right. That greenhouse gas that's, uh, you know, just absolutely terrible. Uh, they might buy what what's selling right now.

[00:34:19] Hmm. Not me. Look. Yeah, EVs electric vehicles like Ford Mustangs, mock E Hummers, EV that's from GM. The, uh, the wonderful new electric pickup. From Ford. Now these are huge vehicles. They are long range electric vehicles, which is what we want. Right. And they can be driven tens of thousands of miles before they rack up enough miles and save enough gasoline to compensate for the emissions created just to produce their batteries.

[00:34:56] And that's according to their fans. And when we're talking about the fans, their, their, uh, predictions, their estimates, their statistics typically are what? A little tainted. Right? We talked about that earlier. Yeah. So it, it, it gets to be a problem doesn't it gets to be real problem. So what are they doing in, instead of making the small electric vehicles, like the Nissan leaf?

[00:35:25] Which was a great little car. I've told the story of my neighbor, who has the, the leaves. He has a couple of them, and he installed a bunch of solar panels and he uses those to charge his leaves and to run around. Cuz most of what driving he does most driving, I do most of the driving, most people do is just short range, right?

[00:35:45] It's less than 30 miles. He just, he loves it. Right, but he's not doing it because it's green. He realizes that it harms the environment to have those solar cells and it harms the environment to drive those electric cars that were very harmful to be made the batteries right now from these electric cars, the outtakes they are storing just like nuclear waste, although there's far more of it than there is.

[00:36:15] The nuclear waste, a separate topic entirely, really? I guess there isn't a whole lot of correlation there, but they, they're not able to recycle so many of these batteries. We just don't have the technology for it. So why would you make these big electric vehicles, these sports utility vehicles, these trucks that have the long ranges.

[00:36:42] And not something that's nice and small th think European, right? Think of the stupid car from Merc. I mean the smart car from Mercedes, uh, that little tiny car that works great in European cities. Where you don't have a lot of space to park the roads. Aren't very wide. You can kind of zoom around zip in and out fine parking.

[00:37:02] And you're not going fast. Not going far makes sense. Right? Same thing with like a Prius with the smaller engines. And yet you see people whipping down the highway passing me. Doing the exact opposite thing that you'd think they'd wanna do. You're driving a small car with a small engine. Maybe it's a hybrid electric gas.

[00:37:24] Maybe it's a plug-in hybrid. To do what to stop CO2, supposedly to save the environment. And yet at the exact same time, you are causing more harm than you need to, to the environment by zooming down the highway. That's not what these things are made for, not what they're designed for, but that is what most people could use.

[00:37:45] And yet G. Ford Chrysler, none of them are making the vehicles that fit into that part of the marketplace. The other nice thing about the smaller vehicles is they don't require as long to charge cuz they don't have to charge up these big battery packs because you're not going that far. So it's less of a demand potentially on the grid.

[00:38:12] Because again, even if you drive that big electric SUV, 30 miles. You are hauling around a thousand pounds, maybe more of batteries that you don't actually need to haul around. See again, it goes back to how so many of us are looking at this stuff. Just like the original Prius poll that I've talked about.

[00:38:39] So many times where the number one reason people said that they drove a Prius. This was some 70% of the people was because of what they thought the purchaser of the Prius thought other people would think about them. , this is, this is a real, real problem. You know, the assumption that electric vehicle stops oil from coming out of the ground stops natural gas from coming out of the ground, stops coal from being mined.

[00:39:08] That assumption is problematic because it is not true. And when it comes to the carbon footprint, again, I obvious. Obviously the, the environment is changing. The temperatures are changing. It it's obvious, right? Climate denier, some might call me, but it's obvious that climate's changing. It has always been changing Mount Saint Helen's eruption, put more carbon dioxide into the atmosphere than mankind has since the beginning of.

[00:39:46] So look at these volcanic eruptions and say, oh, okay. So we've barely scratched the surface as humankind, far less than 1% of global warming is actually caused by humans. but it it's about control, but this isn't a political show. Uh okay. Uh, I guess I am. So let's talk about the next article I had in my newsletter that came out this week again, Tuesday or Wednesday, you can sign up for it.

[00:40:17] It's absolutely free. This is my free [email protected]on.com and ask to be signed up. It looks like president Biden is maybe thinking about going nuclear. I talked about this on the air earlier this week, cuz there's a couple of really interesting things happening.

[00:40:41] One is the federal government has authorized some of these new nuclear technologies. To go online. So they've got these different plants. There's a number of different types of plants that are out there and different technologies, but all of them hyper safe and they are actually in small production.

[00:41:07] Pretty darn cool. The second thing which I found particularly interesting is that at least. Three times over the last few weeks, president Biden has talked about nuclear power just in passing, right? He, I think he's trying to get his base to get used to the idea because he's been trying to eliminate all forms of energy consumption, but he does seem to maybe favor development of nuclear power or whoever is writing his speeches for him, you know, nuclear.

[00:41:41] Is carbon friendly, very carbon friendly, friendlier than windmills or solar parks. And it's a lot more reliable. So I'm, I'm happy about that new plants coming online, just small ones. And that frankly is the future of nuclear, not these huge, huge, and they, he he's talking about it. We'll see, it's absolutely green.

[00:42:07] Even as I mentioned, Germany is bringing nuclear plants back online and the European union has declared that nuclear is green technology. And. I'm shocked here because apparently I'm agreeing with the European parliament. Oh wow. What's going on? Hey, visit me online. Craig peterson.com. Make sure you get my insider show notes and the trainings that come out.

[00:42:39] Craig peterson.com.

[00:42:41] Hey, it looks like if you did not invest in crypto, you were making a smart move and not moving. Wow. We got a lot to talk about here. Crypto has dived big time. It's incredible. What's happened. We get into that more.

[00:42:58] Crypto currencies. It, it it's a term for all kinds of these basically non-government sanctioned currencies.

[00:43:08] And the idea behind it was I should be able to trade with you and you should be able to trade with me. We should be able to verify the transactions and it's kind of nobody's business as to what's happening behind the scenes. And yet in reality, Everybody's business because all of those transactions are recorded in a very public way.

[00:43:33] So crypto in this case does not mean secret or cryptography. It's actually referring to the way the ledgers work and your wallets and, and fact, the actual coins themselves, a lot of people have bought. I was talking with my friend, Matt earlier this week and Matt was saying, Hey, listen, uh, I made a lot of money off of crypto.

[00:43:59] He's basically a day trader. He watches it. Is it going up? Is it going down? Which coin is doge coin? The way to go? Cuz Elon must just mentioned it. Is it something else? What should I do? And he buys and sell and has made money off of it. However, a lot of people have. And held onto various cryptocurrencies.

[00:44:21] Of course, the most popular one. The one everybody knows about is Bitcoin and Bitcoin is pretty good stuff, you know, kind of bottom line, but 40% right now of Bitcoin investors are underwater. Isn't that incredible because of the major dropoff from the November peak. And this was all started by a problem that was over at something called Tara Luna, which is another cryptocurrency now.

[00:44:53] You know, already that there is a ton of vol a ton of, uh, changes in price in various cryptocurrencies, Bitcoin being of course a real big one where, you know, we've seen 5,000, $10,000 per Bitcoin drops. It, it really is an amazingly, uh, fluid if you will coined. So there's a number of different people that have come out with some plans.

[00:45:21] How about if we do kinda like what the us dollar used to do, which is it's tied to a specific amount of gold or tied to a specific amount of silver. Of course, it's been a while since that was the case. Uh, president Nixon is the one that got us off of those standards, but. Having gold, for instance, back in your currency means that there is going to be far less fluctuation and your currency means something.

[00:45:51] See, the whole idea behind currency markets for government is yeah, you do print money and you do continue to increase the amount of money you print every year. Because what you're trying to do is create money for the. Goods product services that are created as well. So if, if we create another million dollars worth of services in the economy, there should be another million dollars in circulation that that's the basic theory.

[00:46:22] Monetary theory really boiling it. Right. Down now of course, you know, already our government has printed way more than it. Maybe should have. It is certainly causing inflation. There's no doubt about that one. So they're looking at these various cryptocurrencies and saying, well, what can we do? How can we have like a gold standard where the us dollar was the currency of the world used and it all its value was known.

[00:46:48] You see, having a stable currency is incredibly important for consumers and businesses. A business needs to know, Hey, listen, like we sign a three year contract with our vendors and with our customers. And so we need a stable price. So we know what's our cost going to be, what can we charge our customer here?

[00:47:08] Can the customer bear the price increases, et cetera. The answer to most of those questions of course is no, they really, they really can't is particularly in this day and age. So having. Fixed currency. We know how much it's worth. I know in two years from now, I'm not gonna be completely upside down with this customer because I'm having to eat some major increases in prices.

[00:47:33] And as a consumer, you wanna look at it and say, wow, I've got a variable rate interest rate on my mortgage. And man, I remember friends of mine back in the eighties, early eighties, late seventies, who just got nailed by this. They had variable rate interest loan on their home because that's all they could get.

[00:47:52] That's all they could afford. So the variable rate just kept going up. It was higher than credit cards are nowadays. And I remember a friend of mine complaining, they had 25% interest and that's when they lost a house because 25% interest means if you have a a hundred thousand dollars loan, you got $25,000 in interest that year, you know, let alone principal payments.

[00:48:16] So it, it was a really. Thing. It was really hard for people to, to deal with. And I, I can understand that. So the cryptocurrency guys. I said, okay, well let's tie it to something else. So the value has a value and part of what they were trying to tie it to is the us dollar. That's some currencies decided to do that.

[00:48:41] And there were others that tried to tie it to. Assets. So it wasn't just tied to the dollar. It was okay. We have X dollars in this bank account and that's, what's backing the value of our currency, which is quite amazing, right. To think about that. Some of them are backed by gold or other precious metals.

[00:49:04] Nowadays that includes a lot of different metals. Well, this one coin called Tara Luna dropped almost a hundred percent last. Isn't that amazing. And it had a sister token called Tara us D which Tara Luna was tied to. Now, this is all called stablecoin. Right? The idea is the prices will be stable. and in the case of Tara and Tara S D the stability was provided by a computer program.

[00:49:39] So there's nothing really behind it, other than it can be backed by the community currencies themselves. So that'ss something like inter coined, for instance, this is another one of the, there are hundreds of them out there of these, uh, cryptocurrencies. The community backs it. So the goods and services that you can get in some of these communities is what gives value to inter Pointe money system.

[00:50:05] Now that makes sense too, right? Because the dollar is only worth something to you. If it's worth something to someone else, right. If you were the only person in the world that had us dollars, who, who would want. Like, obviously the economy is working without us dollars. So why would they try and trade with you?

[00:50:27] If you had something called a us dollar that nobody else had, or you came up with something, you made something up out of thin air and said, okay, well this is now worth this much. Or it's backed by that et. Because if again, if you can't spend it, it's not worth anything. Anyhow, this is a very, very big deal because on top of these various cryptocurrencies losing incredible amounts of money over the last couple of weeks, We have another problem with cryptocurrencies.

[00:51:01] If you own cryptocurrencies, you have, what's called a wallet and that wallet has a transaction number that's used for you to track and, and others to track the money that you have in the cryptocurrencies. And it it's, um, pretty good. Fun function or feature. It's kind of hard for a lot of people to do so they have these kind of crypto banks.

[00:51:23] So if you have one of these currencies, you can just have your currency on deposit at this bank because there's, there's a whole bunch of reasons, but one of the reasons is if. There is a, a run on a bank, or if there's a run on a cryptocurrency, currencies have built into them incredibly expensive penalties.

[00:51:47] If you try and liquidate that cryptocurrency quickly. And also if there are a lot of people trying to liquidate it. So you had kind of a double whammy and people were paying more than three. Coin in order to sell Bitcoin. And so think about that. Think about much of Bitcoin's worth, which is tens of thousands of dollars.

[00:52:07] So it's overall, this is a problem. It's been a very big problem. So people put it into a bank. So coin base is one of the big one coin coin base had its first quarter Ernie's report. Now, this is the us' largest cryptocurrency exchange and they had a quarterly loss for the first quarter of 2022 of 430 million.

[00:52:37] That's their loss. And they had an almost 20% drop in monthly users of coin. So that's something right. And they put it in their statement, their quarterly statement here as to, you know, what's up. Well, here's the real scary part Coinbase said in its earning earnings report. Last Tuesday that it holds the.

[00:53:03] 256 billion in both Fiat currencies and crypto currencies on behalf of its customers. So Fiat currencies are, are things like the federal reserve notes, our us dollar. Okay. A quarter of a trillion dollars that it's holding for other people kind of think of it like a bank. However, they said in the event, Coinbase we ever declare bankruptcy, quote, the crypto assets.

[00:53:33] We hold in custody on behalf of our customers could be subject to bankruptcy proceedings. Coinbase users would become general unsecured creditors, meaning they have no right to claim any specific property from the exchange in proceedings people's funds would become inaccessible. Very big deal. Very scary for a very, very good reason.

[00:54:00] Hey, when we come back, uh, websites, you know, you go, you type stuff in email address, do you know? You don't even have to hit submit. In most cases, they're stealing it.

[00:54:12] I'm sure you've heard of JavaScript in your browser. This is a programming language that actually runs programs right there in your web browser, whether you like it or not. And we just had a study on this. A hundred thousand websites are collecting your. Information up-front.

[00:54:29] I have a, in my web browser, I have JavaScript turned off for most websites that I go to now, JavaScript is a programming language and it lets them do some pretty cool things on a webpage.

[00:54:43] In fact, that's the whole idea behind Java. Uh, just like cookies on a web browser where they have a great use, which is to help keep track of what you're doing on the website, where you're going, pulling up other information that you care about, right? Part of your navigation can be done with cookies. They go on and on in their usefulness, but.

[00:55:06] Part of the problem is that people are using them to track you online. So like Facebook and many others will go ahead and have their cookies on other websites. So they know where you're going, what you're doing, even when you're not on Facebook, that's by the way, part of. The Firefox browser's been trying to overcome here.

[00:55:30] They have a special fenced in mode that happens automatically when you're using Firefox on Facebook. Pretty good. Pretty cool. The apple iOS devices. Use a different mechanism. And in fact, they're already saying that Facebook and some of these others who sell advertiser, Infor advertisers information about you have really had some major losses in revenue because apple is blocking their access to certain information about you back to Javas.

[00:56:07] It's a programming language that they can use to do almost anything on your web browser. Bad guys have figured out that if they can get you to go to a website or if they can insert and add onto a page that you're visiting, they can then use. Your web browser, because it's basically just a computer to do what well, to mind Bitcoin or other cryptocurrencies.

[00:56:33] So you are paying for the electricity for them as your computer is sitting there crunching on, uh, these algorithms that they need to use to figure out how to find the next Bitcoin or whatever. Be, and you are only noticing that your device is slowing down. For instance, our friends over on the Android platform have found before that sometimes their phones are getting extremely hot, even when they're not using them.

[00:57:00] And we've found that yeah, many times that's just a. Bitcoin minor who has kind of taken over partial control of your phone just enough to mind Bitcoin. And they did that through your web browser and JavaScript. So you can now see some of the reasons that I go ahead and disable JavaScript on most websites I go to now, some websites aren't gonna work.

[00:57:23] I wanna warn you up front. If you go into your browser settings and turn off JavaScript, you are going. Break a number of websites, in fact, many, many websites that are out there. So you gotta kind of figure out which sites you want it on, which sites don't you want it on. But there's another problem that we have found just this week.

[00:57:44] And it is based on a study that was done. It's reported in ours Technica, but they found. A hundred thousand top websites, a hundred thousand top websites. These include signing up for a newsletter making hotel reservation, checking out online. Uh, you, you probably take for granted that you nothing happens until you hit submit, right?

[00:58:10] That used to be the case in web 1.0 days. It isn't anymore. Now I wanna point out we, I have thousands of people who are on my email list. So every week they get my, my, uh, insider show notes. So these are the top articles of the week. They are, you know, usually six to 10 articles, usually eight of them that are talking about cybersecurity, things of importance in.

[00:58:38] The whole radio show and podcast are based on those insider show notes that I also share with the host of all of the different radio shows and television shows that I appear on. Right. It's pretty, pretty cool. So they get that, but I do not use this type of technology. Yeah. There's some JavaScript that'll make a little sign up thing, come up at the top of the screen, but I am not using technology that is in your face or doing.

[00:59:07] What these people are doing, right? So you start filling out a form. You haven't hit cement. And have you noticed all of a sudden you're getting emails from. Right. It's happened to me before. Well, your assumption about hitting submit, isn't always the case. Some researchers from KU LUN university and university of Lue crawled and analyzed the top 100,000 websites.

[00:59:37] So crawling means they have a little robot that goes to visit the webpage, downloads all of the code that's on the page. And then. Analyzed it all right. So what they found was that a user visiting a site, if the, the user is in the European union is treated differently than someone who visits the site from the United States.

[01:00:00] Now there's a good reason for this. We've helped companies with complying with the GDPR, which are these protection rules that are in place in the European union. And that's why you're seeing so many websites. Mine included that say, Hey, listen, we do collect some information on you. You can click here to find out more and some websites let just say no, I don't want you to have any information about me.

[01:00:25] We collect information just so that you can navigate the site properly. Okay. Very basic, but that's why European union users are treated differently than those coming from the United States. So this new research found that over 1800 websites gathered an EU user's email address without their consent. So it's almost 2000 websites out of the top 100,000.

[01:00:54] If you're in the EU and they found. About well, 3000 websites logged a us user's email in some form. Now that's, before you hit submit. So you start typing in your email, you type in your name and you don't hit submit. Many of the sites are apparently grabbing that information, putting it into the database and maybe even starting using it before you gave them explicit permission to do.

[01:01:27] Isn't that a fascinating and the 1800 sites that gathered information on European news union users without their consent are breaking the law. That's why so many us companies decided they had to comply with the GDPR because it's a real big problem. So these guys also crawled websites for password leaks and May, 2021.

[01:01:54] And they found 52 websites where third parties, including Yex Yex is. Big Russian search engine a and more were collecting password data before submission. So since then the group went ahead and let the websites know what was happening, what they found, uh, because it's not necessarily intentional by the website itself.

[01:02:20] It might be a third party, a third party piece of software. That's doing it. They, they informed those sites. Hey, listen, you're collecting user data before there's been explicit consent to collect it. In other words, you, before you hit the submit button and they thought, wow, this is a very surprising, they thought they might find a few hundred website, but.

[01:02:44] Course of a year now they found that there were over 3000 websites really that were doing this stuff. So they presented their findings at Usenet. Well, actually they haven't presented 'em yet. Cuz it's gonna be at use N's. In August and these are what they call leaky forums. So yet another reason to turn off JavaScript when you can.

[01:03:08] But I also gotta add a lot of the forums do not work if JavaScript's not enabled. So we gotta do something about it. Uh, maybe complain, make sure they aren't collecting your. Maybe I should do a little course on that one so you can figure out are they doing it before even giving permission? Anyhow, this is Craig Peter son.

[01:03:29] Visit me online. Craig Peter son.com and sign up for that. No obligation inside your show notes.

[01:03:35] We are shipping all kinds of military equipment over to Ukraine. And right now they're talking about another $30 billion worth of equipment being shipped to what was the world's number one arms dealer Ukraine.

[01:03:52] I'm looking right now at an article that was in the Washington post. And you know, some of their stuff is good.

[01:04:00] Some of their stuff is bad, I guess, kinda like pretty much any media outlet, but they're raising some really good points here. One of them is that we are shipping some pretty advanced equipment and some not so advanced equipment to Ukraine. To help them fight in this war to protect themselves from Russia.

[01:04:24] Now, you know, all of that, that's, that's pretty common. Ultimately looking back in history, there have been a lot of people who've made a lot of money off of wars. Many of the big banks financing, both sides of wars. Going way, way back and coming all the way up through the 20th century. And part of the way people make money in war time is obviously making the equipment, the, and supplies and stuff that the armies need.

[01:04:57] The other way that they do it is by trading in arms. So not just the supplies. The bullets all the way through the advanced missile systems. Now there's been some concerns because of what we have been seen online. We've talked about telegram here before, not the safest web, you know, app to use in order to keep in touch.

[01:05:23] It's really an app for your phone and it's being used. Ukraine to really coordinate some of their hacker activities against Russia. They've also been using it in Russia, te telegram that is in order to kind of communicate with each other. Ukraine has posted pictures of some of the killed soldiers from Russia and people have been reaching out to their mothers in Russia.

[01:05:53] They've done a lot of stuff with telegram it's interest. And hopefully eventually we'll find out what the real truth is, right? Because all sides in the military use a lot of propaganda, right? The first casualty in war is the truth. It always has been. So we're selling to a country, Ukraine that has made a lot of money off of selling.

[01:06:18] Been systems being an inter intermediary. So you're not buying the system from Russia? No, no. You're buying it from Ukraine and it has been of course, just as deadly, but now we are sending. Equipment military great equipment to Ukraine. We could talk about just that a lot. I, I mentioned the whole lend lease program many months ago.

[01:06:44] Now it seems to be in the news. Now takes a while for the mainstream media to catch up with us. I'm usually about six to 12 weeks ahead of what they're talking about. And so when we're talking about Lynn Le, it means. We're not giving it to them. We're not selling it to them. We're just lending them the equipment or perhaps leasing it just like we did for the United Kingdom back in world.

[01:07:10] Wari, not a bad idea. If you want to get weapons into the hands of an adversary and not really, or not an adversary, but an ally or potential ally against an adversary that you have, and they have. But part of the problem is we're talking about Ukraine here. Ukraine was not invited in NATO because it was so corrupt.

[01:07:33] You might remember. they elected a new president over there that president started investigating, hired a prosecutor to go after the corruption in Ukraine. And then you heard president Joe Biden, vice president at the time bragging about how he got this guy shut down. Uh, yeah, he, he got the prosecutor shut down the prosecutor that had his sights on, of course hunter Biden as well as other people.

[01:08:00] So it it's a real problem, but. Let's set that aside for now, we're talking about Ukraine and the weapon systems we've been sending over there. There have been rumors out there. I haven't seen hard evidence, but I have seen things in various papers worldwide talking about telegrams, saying. That the Ukrainians have somehow gotten their hands on these weapons and are selling them on telegram.

[01:08:29] Imagine that, uh, effectively kind of a dark web thing, I guess. So we're, we're saying, well, you know, Biden administration, uh, you know, yeah. Okay. Uh, that, that none of this is going to happen. Why? Well, because we went ahead and we put into the contracts that they could not sell or share or give any of this equipment away without the explicit permission of the United States go.

[01:09:00] Well, okay. That, that kind of sounds like it's not a bad idea. I would certainly put it into any contract like this, no question, but what could happen here? If this equipment falls into the hands of our adversaries or, or other Western countries, NATO countries, how do you keep track of them? It it's very hard to do.

[01:09:22] How do you know who's actually using. Very hard to do so enforcing these types of contracts is very difficult, which makes a contract pretty weak, frankly. And then let's look at Washington DC, the United States, according to the Washington post in mid April, gave Ukraine a fleet of I 17 helicopter. Now these MI 17 helicopters are Russian, originally Soviet designs.

[01:09:55] Okay. And they were bought by the United States. About 10 years ago, we bought them for Afghan's government, which of course now has been deposed, but we still have our hands on some of these helicopters. And when we bought them from Russia, We signed a contract. The United States signed a contract promising not to transfer the helicopters to any third country quote without the approval of the Russian Federation.

[01:10:27] Now that's according to a copy of the certificate that's posted on the website of Russia's federal service on military technical cooperation. So there you. Russia's come out and said that our transfer, those helicopters has grossly violated the foundations of international law. And, and you know, what they, it has, right.

[01:10:48] Arms experts are saying that Russia's aggression Ukraine more than justifies us support, but the violations of the weapons contracts, man, that really hurts our credibility and the, our we're not honoring these contract. How can we expect Ukraine to honor those contracts? That's where the problem really comes in.

[01:11:13] And it's ultimately a very, very big problem. So this emergency spending bill that it, you know, the $30 billion. Makes Ukraine, the world's single largest recipient of us security assistance ever. They've received more in 2022 than United States ever provided to Afghanistan, Iraq, or Israel in a single year.

[01:11:40] So they're adding to the stockpiles of weapons that we've already committed. We've got 1400 stinger anti-aircraft systems, 5,500 anti tank, Mitch missiles, 700 switch blade drones, nine 90. Excuse me, long range Howards. That's our Tillery 7,000 small arms. 50 million rounds of ammunition and other minds, explosives and laser guided rocket systems, according to the Washington post.

[01:12:09] So it's fascinating to look. It's a real problem. And now that we've got the bad guys who are using the dark web, remember the dark web system that we set up, the onion network. Yeah. That one, uh, they can take these, they can sell them, they can move them around. It is a real problem. A very big problem. What are we gonna do when all of those weapons systems come back aimed at us this time?

[01:12:40] You know, it's one thing to leave billions of dollars worth of helicopters, et cetera, back in Afghanistan is the Biden administration did with their crazy withdrawal tactic. Um, but at least those will wear out the bullets, missile systems, Howard, yours, huh? Different deal.

[01:13:00] It seems like the government calls war on everything, the war against drugs or against poverty. Well, now we are looking at a war against end to end encryption by government's worldwide, including our own.

[01:13:17] The European union is following in America's footstep steps, again, only a few years behind this time.

[01:13:26] Uh, but it's not a good thing. In this case, you might remember a few have been following cybersecurity. Like I have back in the Clinton administration, there was a very heavy push for something called the clipper chip. And I think that whole clipper chip. Actually started with the Bush administration and it was a bad, bad thing, uh, because what they were trying to do is force all businesses to use this encryption chip set that was developed and promoted by the national security agency.

[01:14:04] And it was supposed to be an encryption device that is used to secure, uh, voice and data messages. And it had a built in. Back door that allowed federal state, local law enforcement, anybody that had the key, the ability to decode any intercepted voice or data transmissions. It was introduced in 93 and was thank goodness.

[01:14:32] Defunct by 1996. So it used something called skip Jack man. I remember that a lot and it used it to transfer dilly or Diffy excuse me, Hellman key exchange. I've worked with that before crypto keys. It used, it used the, uh, Des algorithm, the data encryption standard, which is still used today. And the Clinton administration argued that the clipper chip.

[01:14:59] Absolutely essential for law enforcement to keep up with a constantly progressing technology in the United States. And a lot of people believe that using this would act as frankly, an additional way for terrorists to receive information and to break into encrypted information. And the Clinton administration argued that it, it would increase national security because terrorists would have to use it to communicate with outsiders, bank, suppliers, contacts, and the government could listen in on those calls.

[01:15:33] Right. Aren't we supposed to in United States have have a right to be secure in our papers and other things, right? The, the federal government has no right to come into any of that stuff unless they get a court order. So they were saying, well, we would take this key. We'll make sure that it's in a, a lock box, just like Al gore social security money.

[01:15:55] And no one would be able to get their hands on it, except anyone that wanted to, unless there was a court order and you know how this stuff goes, right. It, it just continues to progress. And. A lot worse. Well, there was a lot of backlash by it. The electronic privacy information center, electronic frontier foundation boast, both pushed back saying that it would not.

[01:16:20] Only have the effect of, of not, excuse me, have the effect of this is a quote, not only subjecting citizens to increased impossibly illegal government surveillance, but that the strength of the clipper trips encryption could not be evaluated by the public as its design. Was classified secret and that therefore individuals and businesses might be hobbled with an insecure communication system, which is absolutely true.

[01:16:48] And the NSA went on to do some things like pollute, random number generators and other things to make it so that it was almost impossible to have end-to-end encrypted data. So we were able to kill. Many years ago. Now what about 30 years ago? Uh, when they introduced this thing? Well, it took a few years to get rid of it, but now the EU is out there saying they want to stop end, end encryption.

[01:17:15] The United States has already said that, or the new director of Homeland security has, and as well as Trump's, uh, again, Homeland security people said we need to be able to break the. And, and we've talked about some of the stories, real world stories of things that have happened because of the encryption.

[01:17:36] So the EU has now got a proposal forward that would force tech companies to scan private messages for child sexual abuse material called CSAM and evidence of grooming. Even when those messages are, are supposed to be protected by end to end encrypt. So we know how this goes, right? It, it starts at something that's, everybody can agree on, right?

[01:18:04] This child, sexual abuse material, uh, abductions of children, all, you know, there's still a lot of slavery going on in the world. All of that stuff needs to be stopped. And so we say, yeah, yeah. Okay. That makes a whole lot of sense, but where does it end? Online services that receive detection orders. This is from ours Technica under the pending European union legislation would have obligations concerning the detection, the reporting, the removal and blocking of known and new.

[01:18:37] Child sexual abuse material as well as solicitation of children. So what we're starting to see here in the us is some apps, some companies that make smartphones, for instance, looking at pictures that are sent and shared to see if it looks like it might be pornographic in some way. because again, we're seeing younger kids who are sending pictures of each other naked or body parts naked to others.

[01:19:04] If you can believe that. Absolutely incredible. But what happens when you send them using an end-to-end encrypted app? Now, my advice for people who want to keep information private, you're a business person you're working on a deal. You don't go to Twitter like Elon Musk and put it out there for the world to.

[01:19:26] Although, I'm sure he's got some ulterior motives in doing that. You use an app called signal. That's certainly the best one that's out there right now. It provides a whole lot of encryption and privacy, and even has some stuff built in to break the software. That's often used to break into the end end encryption systems.

[01:19:47] So they're trying to get this in place here. They're calling it an important security tool. But it's ordering companies to break that end to end encryption by whatever technological means necessary. It it's gonna be hard because frankly it's gonna be impossible for them to enforce this because you can take encrypted data and make it look like almost.

[01:20:11] Anything, and man has that happened for a long time. Think of the micro dots, way back when Seline world, world war II and on, they were very popular there's techniques to encrypt data and embedded in a photograph and make it almost impossible to detect. So again, they're, they're not going to get to do what they're hoping to do.

[01:20:36] And, and I think that's an important thing for everybody. Pay pay close attention to, so they do want to get rid of end to end there's WhatsApp out there, which I don't really trust cuz is owned by Facebook, but that's supposedly end to end. There's end to end encryption on apple iMessage, although up.

[01:20:56] Apparently, there are some ways to get into that. I think apple is now maintaining a secondary key that they can use to decrypt, but the back doors that the us has called for and other people have called for. Have been pushed back by companies like apple Apple's CEO, Tim cook, opposed government mandated back doors.

[01:21:20] Of course, apple got a major backlash from security experts when unveiled a plan to have iPhones and other devices, scan user photos for child sexual abuse images. That's what I was referring to earlier. And apple put that plan on hold and promised to make changes. But this is apple all over again. And it's hard to say what's the least privacy intrusive way, because if the is S P can read them all, if the company that's providing you with the app that you're using to send the message.

[01:21:52] Can read them all, how much privacy is there and if they can read it, who else can read it and what can be done with it? Blackmail has happened many times in the past because someone got their hands on something. So what happens when a, a Congressman or the military or someone in the military uses that that's another problem.

[01:22:14] Because if we don't know the way the encryption is is, is, uh, being used or is made just like, was true with a clipper chip. And then we move on to the next step, which is okay. So what do we do now with this data that we're storing? Are they going to keep that data confidential? Can they keep it outta the hands of the criminals.

[01:22:38] We've certainly found that they just haven't been able to. And if you're talking about grooming, which is what the European union wants. In other words, someone that's trying to get a child to the point where they're doing something that would be abhorrent. Uh, you've got to. Look at all of the, all of the messages, you have to have them analyzed by some sort of an AI artificial intelligence, and then ultimately analyzed by people.

[01:23:04] It it's just gonna get worse and worse. Right? This is the most sophisticated mass surveillance machinery. That has ever been deployed outside of China in the USSR. It, it's absolutely incredible when you look at it from a cryptographic standpoint. And again, we understand protecting the children. We all want to do that, but how far will this end up going?

[01:23:28] I also wanna point out that my. New, uh, insider show notes that I've been sending out over the last few weeks have had some amazing responses from people. I I've had people saying that this is what they look for in their mailbox. It's the first piece of email they read that it's the most relevant news that they get.

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