Stupid Sexy Privacy is a miniseries about how to protect yourself from fascists and weirdos. Your host is comedian Rosie Tran, and the show is written by information privacy expert B.J. Mendelson. Every episode is sponsored by our friends at DuckDuckGo. Tune in every Thursday night —or Friday morning if you're nasty — at 12 am EST to catch the next episode.
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Welcome to another edition of Stupid Sexy Privacy, a podcast mini series sponsored by our friends at DuckDuckGo. I'm your host, Rosie Tran. You may have seen me on Rosie Tran Presents, which is now available on Amazon Prime. And I'm your co-producer, Andrew VanVoorst. With us, as always, is Bonzo the Snow Monkey. I'm pretty sure that's not what a Japanese Macau sounds like. Oh, it's not. Not even close.
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Let's hope there aren't any zoologists listening. Okay, I'm also pretty sure that's not what a snow monkey sounds like. Over the course of this mini-series, we're going to offer you short, actionable tips to protect your data, your privacy, and yourself from fascists and weirdos.
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These tips were sourced by our fearless leader. He really hates when we call him that. DJ Mendelson. Episodes 1 through 33 were written a couple of years ago. But since a lot of that advice is still relevant, we thought it would be worth sharing again for those who missed it. And if you have heard these episodes before, you should know we've gone back and updated a bunch of them, even adding some brand new interviews and privacy tips along the way. That's right. So before we get into today's episode, make sure you visit StupidSexyPrivacy.com.
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and subscribe to our newsletter. This way you can get updates on the show and be the first to know when new episodes are released in 2026. And if you sign up for the newsletter, you'll also get a free PDF and mp3 copy of BJ and Amanda King's new book, How to Protect Yourself from Bastions and Weirdos. All you have to do is visit StupidSexyPrivacy.com. StupidSexyPrivacy.com. That's what I just said. StupidSexyPrivacy.com.
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I know, but repetition is key to success. You know what else is? What? Bonzo, eat your pablan like a good boy and pretty soon you'll grow up to be a big, strong, handsome man just like your daddy. Then you'll have Swedish pancake too. I'm really glad this show isn't on YouTube because they pull it down like immediately. I know. Google sucks. And on that note, let's get to today's privacy tip. oh
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Dr. Al-Gurnon Austin is the Director of Race and Economic Justice at the Center for Economic and Policy Research, TEPR. With over 20 years of research experience, he specializes in racial inequality and economic justice, with a particular focus on Black employment rates and the use of subsidized employment as a policy solution. We were really excited to talk to him about crypto, something Dr. Austin has spent a lot of time researching and thinking about, because he brings a perspective that isn't often heard in the space.
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And he agrees with BJ that crypto is a scam. I totally disagree with BJ, but we'll get to that soon. We promise. Until then, let's get to the interview. Aljana, would you like to take a moment to introduce yourself? Okay. My name is Aljana Austin. I'm the director for race and economic justice at the center for economic and policy research, which is a research organization, research and policy organization in Washington, DC. came across your work initially about the genius act.
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So that's really what brought us together. But I have a few questions that might come in and out of that topic. ah One of them has to do with Doge. So was hoping we could start there. Oh, yes. That's a great place to start. Yeah. And just today, on the day that we're recording this interview, there was an article in the GRIO that had said ah that the General Accounting Service is now rehiring a lot of the people that were
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the relate off by Doge. Well, that is good because that is the actual, you know, uh there are organizations uh that track waste, and abuse in the government and Doge and the Trump administration, ironically, dismantled pretty much all of them, you know, or attacked pretty much all of them. They fired the inspectors general who monitor waste fraud and
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They underfund a number of organizations and a number of regulatory organizations. um So it's almost as if they weren't really concerned about waste, fraud and abuse, which is what I argue. fact, Doge will, know, Elon Musk started off saying he was going to cut $2 trillion from the federal budget. uh I think
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When all the dust settles, he will have cost us money. We will lose revenue, in part because of reductions for these agencies and these individuals, but also for cuts to the IRS. Now, the IRS, people mistakenly uh think that the IRS creates our tax policy.
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But no, Congress creates our tax policy. So if you don't like the taxes that you're subject to, you should complain to the Congress, uh not to the IRS. The IRS are simply the tax police or the people who are enforcing traffic fines, et cetera. They are just collecting. They are just executing.
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the requirements that Congress has put in place. They are the police. They're just enforcing the tax laws. They're not creating the tax laws. But what happens when you shrink the IRS, which is what the Trump administration has done, is that you make it easier for millionaires and billionaires to cheat on their taxes. For average Americans, tax returns are very simple. uh
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You you pay your taxes. It's easy to track most average people. When you have, for the rich, for the very rich who have multiple investments and multiple properties and multiple businesses and, you know, various tax loopholes that they're exploiting, it gets very complicated. So you need significant IRS staff and expertise to go after those individuals. But
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By cutting the IRS, what you do is you create an environment where very wealthy people can get away more easily without paying their taxes. And the estimate is that there's a tax gap of about $700 billion a year. So if you want to improve the federal budget, going after the $700 billion a year is a sensible thing to do. But if you cut the IRS,
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you just make that number larger. That means the US government gets less revenue. And the Yale Budget Lab estimated that the cuts to the IRS, the recent cuts to IRS funding, the Inflation Reduction Act added $80 billion to the IRS, which sounds like a lot until you know that that
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money was estimated to bring in over $600 billion in revenue over the next 10 years. So you get a great return on your investments. We get more money for health insurance programs, for the military, for education, when we adequately fund the IRS, when we don't adequately fund the IRS, billionaires and millionaires
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get to cheat on their taxes. And unfortunately, that's what Doge and the Trump administration has done. And let me add, just sort of adding insult to injury, they've uh cut uh funding to the IRS, but also the Trump administration has said, has halted IRS crackdowns on tax shelters. So.
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This was another, again, I mentioned there are all these various loopholes and the IRS was really tracking to see, these people actually following the law or are they uh doing tricks to cheat the government out of tax payments? And the Trump administration says, we're not gonna look. They instructed the IRS, don't look for those things.
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uh So that means that's over 10 years, the estimate is over 10 years, that's another $100 billion a year. I mean, $100 billion over 10 years that the IRS will not be collecting. So it has probably never been a better time to be a millionaire or a billionaire tax cheat in America than today. Right. I mean, it's so frustrating because I'm a big advocate for expanding.
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Medicare coverage to everybody who wants it. And the response you would always get, and I've got this from my local congressman, was it was too expensive. uh So you mean to tell me that it's too expensive, but look at all the money that we're losing here. Exactly. Exactly. We're losing over $700 billion that we know we're losing and we know how to get it. But they have defunded the tax belief so that
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millionaires and billionaires can more easily cheat on their taxes. You know, I find it ironic that the people who complain about defunding the police are actually defunding the police. Yeah, yeah, absolutely. Absolutely. Let me ask you, because a lot of this deals with crypto, So crypto, as I recall, I was an advocate of it for a while, you know, after coming out of the recession and a lot of people had the belief
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for better or worse, that this was a way to not deal with their taxes. Like this was a way to kind of perform it and run. And so over the years, my position has, as I've learned more and more about it, it's that I just feel crypto is now a scam. And it seems to be a way, regardless of what the technology was or the promise of it, it seems to be a way for people to avoid paying their taxes. So. uh
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Before we get into the genius act, was hoping you could share your opinion on cryptocurrencies, generally speaking. Yeah, so crypto, the original vision of crypto was a way for individuals to free themselves of powerful from the sort of domination by powerful individuals and powerful institutions. It's like, okay, let's get out of this system and we'll have two individuals, you know,
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We have a currency that two individuals can use to trade whatever they want. I want to buy your car. I give you some crypto. You give me the car, whatever. And the government doesn't have to be involved. The banks don't have to be involved. That was the original vision, that it was a way to kind of break free of sort of the wealth, the established wealth and power in the society.
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That's the original vision. So it's a quite utopian, uh in some respects, utopian, libertarian, anarchist, uh in that you're free. just giving individual, just each individual autonomy over these aspects of their financial lives. That's the original vision. Of course, today it is the complete opposite of that vision.
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Right. mean, one of the biggest uh people in crypto is the president of the United States. if you think you're getting away from the government, you're getting away from wealthy bankers, you're getting away from domination by the rich, no, those are exactly the people who control the crypto industry. And with the Genius Act, you know, the big banks are all saying, hey,
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We're going to, you know, we're looking into issuing our own stable coin. even it's even accelerating that capture of the crypto space by the wealthy and the powerful. And again, using it against the average people. So, yes, I understand how people can be attracted to the original vision, but it's important to realize that where crypto is now is the complete.
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complete opposite of what the original vision is. uh So that's one thing. There's so much to be said about this. But once, I think it's important to understand, first of all, what is crypto? Because the industry also likes to confuse people and get into all sorts of technical jargon to obscure what it is. Because if you know what it is, it's
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it's actually becomes frightening if you fully understand what it is. crypto is a financial asset. You know, originally it was meant to be a currency that you trade, but for most people it's a financial asset. It's a speculative asset. They buy crypto with the hopes that it will uh increase in value and they'll become wealthy. For most people holding crypto, they're not
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Getting crypto because they want to buy milk in the grocery store using crypto. They want to become more wealthy than they currently are. So it's a financial asset, but it's different than other financial assets like stocks, for example. If I were to buy stock in Apple, I own a piece of the company, Apple, and the value of my stock is connected to the value of the
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of Apple company, know, Apple makes phones and computers and other things. It provides goods and services. And because people are willing to pay money for those goods and services, Apple as a company is profitable and my shares are profitable because Apple as a company is profitable. Again, it's producing goods and services that people are willing to pay money for.
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Cryptocurrency, the other hand, generally speaking, do not produce goods and services. ah Where does the value, therefore, come from? The value of crypto comes, cryptocurrencies are valuable, because people think that other people are going to want to buy crypto. ah So it's a bit.
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It depends on...
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people expecting that other people are gonna put money in and buy crypto. And this means because it's based on feelings and guesses, this is why it can be extremely volatile. So for example, the Trump coin, Trump issued his mean coin in January and it was valued
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at about $28 when it was released. And then a day later, it's worth $75. Now, again, did Trump make a good or provide a service that was just amazing and everybody wanted to buy it and the value? No. People said, hey, Trump is popular. People are going to want to buy this.
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That's it. And the thing is with the Trump coin, interestingly enough, I think a few seconds or a few minutes after it was released, someone bought, I think it was like a million dollars worth of this coin. So which suggests there was some insider trading. So somebody knew and other people did this too. It seemed like people...
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suspected that Trump is very popular, he has a big following, people are gonna wanna buy this. The value shot up to $75 and then those big investors, sometimes I think they're called whales, they probably said, hmm, we don't think it's gonna get much higher than where it is now, let's sell everything we have.
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And then, you know, next thing you know, a day later, it's worth $32. So it went from $75 to $32. Now here you see, one, this incredible volatility, because it's not based on anything. There's no, you're not going to see Apple stock most of the time. Sometimes they're a panic situation, but you're not going to see Apple stock, you know,
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triple in value one day and then crash the other day, know, crash again. No, because people know, people can look at the assets, look at the company, look at the inventory and know that, you know, it's still valuable. It was valuable on Monday, on Tuesday, it's still valuable. It's not, but if, if what you're betting on is just people's
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interest and if you're a whale and also because there is no underlying product and service, it's much easier to manipulate. So you have people who can rush in, put millions of dollars, the price goes in and less savvy investors um say, look, this is really going up. The value of this is really going up.
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I'm going to try to get a piece of this. I'm going to put in $1,000, $500 in the hopes of riding this wave. But then the people who put in a few million essentially take all that money that the people coming in after put in.
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and go away with it. So yes, so that wealthy investor who put uh a million in, um in two days, he sold everything he had and he made $109 million. So, you know, extremely profitable for him, but over 800,000 other investors lost money. you know, so that's crypto.
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uh Our co-producer, BJ Mendelson and my co-host, Amanda King just put out a new book that you really need to read. It's called How to Protect Yourself from Fascists and Weirdos. And this book delivers on what the title promises. If you're worried about the fascist takeover of America, but don't know how or where to start fighting back, this book is for you. If you need practical tips on staying safe at a protest or filming law enforcement without getting indicted, we got you covered.
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And because life isn't all about the crisis of our time, BJ and Amanda even cover how to protect yourself offline for moments like when you realize your date is a total weirdo. The best part? This book is absolutely free. Just head on over to StupidSexyPrivacy.com and click or tap on the word book. Now let's get back to our interview already in progress. And let me let me ask you, because I mean, the big thing with the genius act, I think about Congressman Ro Khanna.
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He's one of the Democrats that voted for it. My congressional representative, Pat Ryan, is another Democrat that also voted for it. And both of them kind of made the statement that the legislation, this is Ro Khanna, that the legislation is needed right now. There's a total lack of clarity and it's totally unregulated. Does the genius act really do that though? Yeah, well, yes and no. I think you have to
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go back and recognize that crypto, there is nothing that crypto does that can't be done as well or better with something else. So the first question is why, why do we need stable coin? You know, we can use dollars, you know, a stable coin is a crypto that's pegged to the, to the U S dollar or, or something similar. It's like,
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We already have US dollars. don't need another version of it. However, what crypto does is crypto is very valuable uh to the people who sell the currency because they make fees every time you buy it. The people who manipulate currencies, and I gave you an example of somebody who manipulated it. It's like, I'm going to put a million in and make over a hundred million.
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ah So you have people like that who are doing what they call pump and dump. They pump up the value and then take the wealth of everyone who came behind it uh and sell everything off. ah So the people who manipulate the currencies make a lot of money and the criminals who hide and launder their money make a lot of money because they don't get caught. uh
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So one, we don't need anything and it does a lot of harm. So yes, Rokana is correct that uh the Genius Act does uh put some regulations around crypto, but more importantly, what it's doing is putting a type of government seal of approval on stable coins um and therefore encouraging an uh
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encouraging and allowing it to play a bigger role in the US economy. Now remember, the way you make money in crypto, ah one, if you own a currency that people are buying, you make money the more people use your currency. So if you have a stable coin or if you're establishing a stable coin, ah you like
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You like to have the, you want the government to see the of approval because you can sell it to more money, to more people. You can make more money. uh If you're a criminal, you want stable coins because it allows you to, you know, do your ransoms, transfer your money without worrying about the problem of volatility. So you don't lose, you know, uh
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You you saw with Trump coin, you could lose a lot of value, but a stable coin keeps your your the money that you've stolen. That's the same value. So it's very useful for that. There are other ways. And maybe we'll get into it a little bit. There are other ways. Well, yeah, let me get into it now. Stable coins will allow, again, wealthy.
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individuals and companies to save money by not paying credit card fees. So if you're Amazon, for example, headed by Jeff Bezos, you can issue the Bezos stablecoin. And let's say I spend $5,000 a year on Amazon. Amazon can say,
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Hey, you spend $5,000. Why don't you just give us $5,000? We'll give you $5,000 worth of Bezos coin. And you can use Bezos coin for all your Amazon purchases. And we'll give you, you know, I can imagine they'll do some point system, you know, like credit card points or something. So for every Bezos coin, you get a certain number of points and you can redeem the points for whatever.
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But the thing is, on a typical credit card charge, the company might have to pay 3 % to the credit card company. But if Amazon is issuing a Bezos coin, then they don't have to pay that 3%. So they get 3 % more money from you. So you are putting some regulation and
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We'll talk later about the, you know, the strength of the regulation, but you are at least on paper putting some regulation around stable coins. But is it helping the American people? Is it doing anything beneficial for the American people? No. Is it helping rich people get richer and criminals get richer? Yes. And of course you have to put this in a context of where the crypto industry spent more than a hundred million.
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on the 2024 election and probably millions more lobbying Congress. And they're already establishing another over another 100 million for the midterm elections. So I think, you know, and I think they may have been decisive in kicking some people out of Congress, you know, getting, helping defeat some people, some people in Congress.
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oh So I think that there are people in Congress, I'm not saying this about Ro Khanna, but there are people in Congress who are saying, look, I don't want to go up against this amount of money. ah So maybe I will vote for what they want so that they don't put a challenger against me in the next election. Yes. And I hear that. It's something that I want to point out to our audience because we sometimes hear that.
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from the Republican side the aisle where, you know, I don't want to impose Trump because Elon Musk will run someone against me. But I think the point you made is really important because it's also on the Democrat side. Yeah, yeah, yeah. No, they have a lot of money. You know, they make a lot of money and they're clearly willing to throw it around. And unfortunately, we don't have strong
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campaign finance law. you know, the Supreme Court said, hey, they can they can throw their money around and, and, you know, them spending their money is quote unquote, free speech. Right? You know, of course, their 100 million is spent is a lot bigger. It's a lot louder than my you know, $10 or $100.
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That's right. Yeah, there's a congressional candidate in Chicago, Kat Abo, who was talking about the fundraising and she was saying her largest donation typically is about $33. Right. So you compare that to to what some of these other candidates bring in. And it's it's kind of incredible. But let me let me ask, because I'm just watching our time. I want to go back real quick to the great recession. Mm Because.
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crypto kind of was born out of that, right? Like was, not, we're not going to be fooled again. ah There's a better way. We're not going to the banks. I totally get that. But um both yourself and I'm thinking about Arthur Wilmarth at George Washington University and a few others have basically pointed to the genius act and said, listen, this, this has the potential. It's not a guarantee, but it's got the potential.
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to trigger something along the lines of what we saw with the Great Recession. And I was hoping you could elaborate a bit more on that. Yes. And before I do that, we have limited time, and this is the big topic. So I want to get to that. that's just one of five problems that Senator Elizabeth Warren has pointed out with the Genius Act.
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So let me just list the five and that's one of them. So I'll get to that, but it's good for your audience to be at least aware of the five. So one, enables, this is what she says and this more or less a paraphrase. It enables corruption, particularly for Donald Trump. he is deep. The Times just did a report about the UAE and Donald Trump and chips that people should read.
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It increases risk to US financial stability, which is what we'll get to. It provides easier access to mint money for terrorists and drug cartels. It will allow Elon Musk, Mark Zuckerberg, and other billionaires to issue their own money, collect even more of our financial data, and ultimately destroy small community banks.
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And five, it will put average investors at a greater risk to scammers. So I think all of those are correct. So the financial risk. ah It's important to know that, ah yes, there is a supposed regulatory framework that's in this bill. But as we started off with Doge,
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and the Trump administration have been firing the regulators and defunding the regulatory agency. it's like if you have a law but no one is enforcing it, does it matter? uh And because it makes it, in a sense, it encourages more people like Elon Musk and Mark Zuckerberg and
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Jeff Bezos and JP Morgan Chase and Citibank and all of them to rush in and create stable coins. You actually need, because there are going to be so many coins, you need an even more robust police force for all the coins that are coming at it. And because you're going to have such inadequate policing, it becomes really easy for people to not follow the law.
33:36
One of the things they're supposed to do is, you know, I gave the example of Amazon. If I give Amazon $5,000 for $5,000 versus Bezos coin, Amazon is supposed to keep that money so that at any point that I want to get it back, I can get it back. But, you know, I'm just using the example of Amazon and Amazon is a big company, so it probably won't happen. But for somebody else, for let's say some smaller
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stable coin issuer might say, hey, you know what? I could take this $5,000 and invest it somewhere. And I could make even more money than I could make if I just get the regular interest that I could capture off of this $5,000 from treasury bonds,
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But of course, people have done that and then lost the money. And then people are trying to get their money back that they put in and it's not there. uh So there have been 23 stable coins that have failed. when one fails or any fail, uh you can expect people to go into a panic.
35:00
And there'll be a run on the bank. And this is what happened with Silicon Valley Bank uh that was entangled with crypto. Yeah, this is exactly what happened. They made unwise investments with people's money. They were entangled with the crypto industry. And then once people realized they were making bad investments, there was a run in the bank. And it failed.
35:30
And that wasn't the only one. Like I said, there was Silicon Valley, Signature Bank, Silvergate Bank, all of them were tied up in the crypto industry and all of them failed. ah So this is the financial crisis that people are worried about, that you're going to have a lot of people issuing stable coins, a lot of people breaking the law because the police have been defunded. And then ah
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you know, the American people will be required to bail out the industry because they'll be like, oh, we don't have the money you gave us. Right. So this is the thing. And again, we have seen this in the mid 19th century. There was, again, an environment where lots of people, lots of different institutions were allowed to issue their own currency. And again, there were lots of bank failures.
36:30
So we have a history of this happening and it's like, why are we doing this? We do not need stable coins for anything. So why introduce the risk to the US financial system? Yeah, I mean, it's scary stuff. And so my last question is, we, should everyone just get out of crypto? Well, people have to make their own financial decisions, right?
37:00
But what I will say is, ah to be honest, if you buy the right coin and you sell it at the right time, you can make a lot of money. But of course, if you don't buy the right coin, if you rush in and you buy the Trump coin, for example, you could lose all of your money pretty quickly. ah
37:30
Or even if you buy the right coin, I mean Bitcoin, there was a moment Bitcoin was riding high and then it crashed. uh And people then sold Bitcoin and lost money because they sold it at a bad time. So even though Bitcoin is one of the better crypto investments, just because it is so popular.
38:00
Because again, what determines the value? The idea that other people think it's valuable. And so because Bitcoin is so popular, it's one of the better investments in the crypto space. But even Bitcoin can crash. And if you sell it at the wrong time, you can lose, you know, you can lose all of your money. um So you have to, if you want to make money in crypto, you have to buy the right coin.
38:30
and you have to sell it at the right time. on the other hand, you can invest in something like S &P 500 or Total Stop Market Index Fund. generally speaking, you don't have to time that. can put that in historically. Past performance is not a guarantee of future results.
38:59
You could, so, but looking backwards, you you could have put money into one of these index funds, you know, SMP or total, 30 years ago. And, and today it would be, I don't know how much, but worth much, much more. And it would not have, you wouldn't be exposed to the risk that you are in crypto. You wouldn't be exposed to the volatility that you are in crypto for the most.
39:28
So the performance of the of stocks, real stocks, particularly index funds, is just much more secure and much less risky than crypto. So, you know, take that into consideration as you make your investments decisions. think that's a great answer.
39:58
In a world of notice and consent, the onus on protecting yourself from fascists and weirdos falls on you and not the greedy tech oligarchs. The problem is we don't all have $110 million to buy 11 homes in one of America's most expensive zip codes, just so you can have your privacy. So whether it's buying a brand new MacBook Pro or purchasing a used vehicle all at cash that was built before 2015, this stuff can get real expensive real fast.
40:26
And when most Americans look paycheck to paycheck, this situation can be disheartening. That's why we partnered with DuckDuckGo. Their browser is free. Their search engine is free. You can privately access select AI chat models for free. And you can get an at Duck email alias for free as well. All without putting money into the pockets of companies like Google.
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41:18
or $100 for the year. That's less than the cost of virtually every streaming service these days, especially because those services now routinely raise their prices every six months. Congratulations, everyone. We reinvented cable.
41:32
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41:59
Don't support companies that support them. Support DuckDuckGo instead.
42:08
This episode of Stupid Sexy Privacy was recorded in Hollywood, California. It was written by B.J. Mendelsohn, produced by Andrew Van Voorst, and hosted by me, Rosie Tran. And of course, our program is sponsored by our friends DuckDuckGo. If you enjoy the show, I hope you'll take a moment to leave us a review on PocketCast, Apple Podcasts, or wherever you may be listening. This won't take more than two minutes of your time, and leaving us a review will help other people find it.
42:33
We have a crazy goal of helping 5 % of Americans get 1 % better at protecting themselves from fascists and weirdo. Your reviews can help us reach that goal, since leaving one makes our show easier to find. So please take a moment to leave us a review and I'll see you right back here next Thursday at midnight. After you watch Rosie Tran Presents on Amazon Prime, right? Bonzo, I wish that you'll have many more birthdays just like this one. With those you love and trust around you always to share your happiness.
43:03
And I wish that you'll get a chance very soon to prove that being loved and looked after like a human being has made you feel like a human being. And that if love can do that to you, then it ought to be able to make some other human beings... ...a human being.