the, the, [000:00:00;00] the time as soon or 10. so you're welcome back to going underground broadcast single around the world from the u, a. e. after a year of u. k. u. s. u, i'm genocide and nature defeat in its proxy war on russia through ukraine. the

global economic landscape is transformed. most of the world now looks optimistically to new bricks while due to, as western european economies collapse and the us on the trump reported the seeks to retrench. but what about one technological danger? they could end not only the livelihoods of most on the planet, but life on the itself. jim regards is back to give us a warning, detailed in his new book, money gta i, and the threats to the global economy. he's the best sending economics, all of our former pentagon and us intelligence adviser and commented or the financial newsletter strategic intelligence. you joins me again from albany in new york gym. thanks so much for coming back on. we seeing the horror of uh, hey, i own wolf areas, millions of threatened bites in this region by the u. k. u. s. u armed weapons. so what is money? g p t, in the title of your book, outlining a threat to perhaps bigger than the threat 3 single year in ukraine and goes yes, actually that says exactly right, we're in the finance around. although i do have

a chapter on actually nuclear. we're fighting, but the point is, you know, a, i artificial intelligence of course, to be john or to a pre trained transformers should be to use just as subset of a i is a part of that. it's called a tension. lately you can give it a prompt, it'll, it'll write it, i say already, but by the way, i should issue a just claim i actually wrote this book. it was not written by a computer. uh, but uh by computers can do that in a lot of college kids are using it for term papers and so forth. so it's quite a lot of good, especially just a subset of, of a i and the, the, the book is not bash a i saw that they are bashing exercise. there's, oh, it's very powerful. there's lot of good that will come out of it just in the pharmaceutical space. um, you know that the big biochemist like a new i killer combination. so it could treat or assure certain diseases, but there are billions of them and a lot of smart people in the room, a lot of equipment could only come up with so many. but our official intelligence

applications can do far more far faster. and actually they've produced some combinations that look interesting. so some good is coming out of it already. and i, i talked about that just very briefly, but that's not what the books about in the book i stick to my lanes, so to speak, which are a capital markets banking and national security. so i look at a, i is applied to those 3 areas and make the point. there's nothing new about a i, it's been around as science has been around since the 1950s, as logic has been around since aristotle. i'm in a nurse over 60000000 soldiers and mrs. luke looks like a couple lines of a computer code as a matter of fact. so um, you know, mary shelley's frank and sign that was the frankenstein's creature was arguably in the early ninety's center. so. so it's been around, but what's new is that the processing power is much, much faster because in video and others aimed in town. obviously, these, some of the cartridge ships are orders of magnitude faster than what's come before

you need a lot of electrical power as an issue. but even though you supposed to reopen nuclear power plants are 3 mile island, so they can have enough electricity for all the computing power. but the 3rd thing, and probably the most important is what's called the training set. so these are, these are learning models, these, these are models that are capable of learning facts and making connections on their own without the developer having to, you know, download the information or create the code. so what, what are they going? actually, jim quick detour from him and, and to him and get into the work, isn't that you explain in those language models that they use for? sure, i have a whole chapter on that on biased censorship and contract violation where can tabulations just eventually we're for lying, but it's the kind of line where you don't even know your line because you don't, you don't know what you're saying. but uh, but that's part of it as well, and make the point that i show your training on materials. okay,

what are the materials? we'll see internet basically, you can buy the entire in as a bb pages, or however many a lot of developers don't need that much. they buy out, however many terabytes they need. but when they, but the computer is a going to that they're looking for words that associated with other words, explaining what the call clusters or clouds. and then when it produces speech or writing, we're just the output it, it, it can, it's kind of speaking or any language really, but it can speak, you know, in my case, english pretty grammatically or by some of the output it's, it's not bad. but the problem is, it can't think there's nothing intelligent about artificial intelligence is all math. one of the problems we make is we have to have more flies that we because it can talk and have a pleasant voice like siri or. alexa, we, we think it's our friend, it's not our friend is just, is just a bunch of math. but having said that, um, recently google avondale there,

gpc app. it was called gemini. and one of the users, uh, early user put in a what's called a prompt, which is a question. and it says, please give me an image of a pope. and the computer came back with 3 images of women and people desperate us and to shauna. and then another user said, please give me an image of a viking and it came back with an african biking. well, i happened to be catholic and i happen to know that there have been 266 pups in 2000 years and they were all met. now whether you think that's a good thing or bad thing, we can take that to the bar, but it's a fact that we've had 266 male pups, no female pups. if you've been to scandinavia there for cans and blonde, there are, there were no african vikings in the year 1000 a day. so it was. so people say, well, it's malfunctioning, it's producing, you know, kind of garbage output. they need to go back and fix it, and even the circuit brand came out. so yeah,

we kind of blew that one. that's not true. it actually functioned exactly as waves designed. and that's the point. there was no bug, you know, buried in, in the layers of the model. it had a feature called prompt injection. what's prompt injection, will you give it a prompt? and instead of giving you a straight answer to a straight question, it will embellish the question to meet some politically correct will work goals. so for example, you say give me an image of the pope and the computer reads it as, give me an image of a pope in a world where there is no sexual discrimination everyone's treated equally well. if, if that's the question you're going to get some female tubs. but there was a question. uh, same thing with the viking. you know, obviously give me a biking. it'll say give me a biking in a world where, you know, all races come together. come, they said, well, you might get a black liking, but the point is, it's not, it's is functioning perfectly, but it's not responding to your question. it's responding to an embellish question

that incorporates, woke of activism. uh, you know, cetera. i mean, those are humorous examples. those are humorous examples, but i mean, in scholarly research, this is catastrophic because i use a in the book about the ukraine essay, which you quickly, i then defied is probably a result of judge cvt in foreign policy magazine the, the catastrophically poor journal that the c i a and diplomatic walks uh wants to quote from right, well, well, you're right. i mean the examples are very successful, but they're the real examples. but sure apply to anything applied and i make that point. so who are the gatekeepers on g? p to who are the who are the gatekeepers controlling the output? you or i or anyone else or any serious atlas we get using gp. what all we know, what is this is open? i would just say i'm out as a private company, but it's microsoft now that which is facebook alphabet, which is google, apple, and just a few others, a fire 6 gatekeepers. now,

what's their track record and coming up with the truth. well, they, a lot of are covered the, a lot of the about nass, which don't work a lot about the vaccines, which are not vaccines expand, not experimental of g modification therapy says also don't work that a lot about the war and ukraine of many americans still think we're winning, we're, i mean, well, she's winning decisively and the nato back to print it forces are losing her reference later at 500000 to the average americans. typical americans don't know that because our media lies about it, including google search results and a lot of our climate change. so you had people, organizations struggle to google, but the other ones i mentioned who have been lying to you for 5 years or longer. about climate change born ukraine, depending demik and, and, and a lot of the house. but all of a sudden we're supposed to believe them and you be. so my point is they belong to us all along the cubes and g p t. i would be extremely wary of taking anything. there comes out of the attributes of place value and then just add to that. if you

happen to be a subject matter expert, you can probably spot the fall. so it does like this. but there was an example where you kind of turn that in a 2nd. you can probably spot the faucet, but if you have to be a subject matter expert to spot the fallacies, then what good is it in the 1st place. but the real danger of the people who are not subject matter experts who are relying on it for good information. so being propagandized propagandized by the output is just then one of many flaws and problems with the system that i do. i point to the example you're on ukraine's that you referred to as foreign policy magazine and they did kind of experiment. they created 2 essays, you know, fairly short, 900 words on the origins. they weren't ukraine. one was generated by a computer g, b, t. the other one was done by a bright high school student who was somewhat knowledgeable, and they were publish side by side anonymously. and as a reader, you are supposed to look at them and see if you can pick the robot. i took it in

one set like one sentence and that's the robot. and then i read the rest of it about the other ones that as a student and i was right. but nothing was easier because it started with cliches one after the other. and you know, i'm a rider, i knew you don't likely share as i used to occasionally, because so few of them come in handy, but it was cliche written, but that's how a computer i won't use the word thing so sorry, computer process russian aggress looking at things like that. yeah. was, it was, well, exactly. i was looking at a 1000 articles on ukraine and to see certain cliches over and over. it assumes that that's how you write a so i have good writers, right? but that's how a computer might write. so it was already used as a spot, but so the way through to problem is number one. why said 1st, what was easy to spot the robot for the reason i mention, but neither the robot nor the student got it right because they completely ignored the 2014 food i taught the 2008 declaration, you know, in 2008 george bush said george and ukraine. she joined data 6 months later putting,

invaded georgia. okay, so were you not paying attention? did you not understand that you had crushed the red line? you are threatening versus national interest in the 2014, the c i a and then my search china cru, deposed a duly elected leader. okay. maybe wasn't the most honest and popular guy, but he did when an election. and then 2 months after that, putting together a crime it. so i was what, what part of the red line do not understand. but they kept going and they kept going. and that was not mentioned in this as a really started with a special military operation in 2022. so a, the work was deficient by the human and the robot because it didn't really get to the, it was, and the, the role that was easy to spot because it wasn't a very good writers. so it's hard to tell, though, i don't know whether you know, your chat cvt because it's giving southwell to assess here autonomy to invading georgia. know,

but this is the point we can argue about different points. but if the eye is giving this information as a truth then gospel based on lies than the whole world is run on life, sorry to interrupt. i know we have to get through so much. you did mention open a i, which i didn't know if to be called close day i have i multiply by you present. we are usually relieved of a drum fig tree. then as regards the little mosques influence the heat, almost because pointed to the dangers of this, hey, i technology before we get to the themes in your book. i mean, you're going to tell me with these written read you. but i don't know if the lawn is ready. i don't know if the jump is rather, but i do know i'm in touch with, you know, people in the transition team and uh yeah, it's, uh, it's chris some interest that will say a few things are more of nauseous and putting yourself on the back. but i my newsletter the week before the election, we said donald trump jump in the past. we're going to end. we said donald trump is going to get $312.00 electro, those including michigan, $54.00 sentences,

and $224.00 house seats. the actual result was $312.00 electro about so we, we now that you have started landing $53.00 sentences. so okay, off by one and looks like $222.00 houses off by 2 out of $435.00. so is literally the best prediction in the world, you know, people like, uh, uh, uh, yeah, we need silver and the new york times and the others were saying too close to call the economists said the counselor's going away and you know, etc. so you have to deal with all that, but we got to exactly where, but that's because we're using a better models, you know, so you get more, i q points rated to be a better models, you're going to get better results. so, um, yeah it's, it's a but it's a great outcome for the united states and my view um, and really watch and we're just going to go to a break though. we're good. that's what are using result to different kinds of stuff to you that more from the phone with had to get adviser best selling all their money g, b, t i, and the threat to the global economy. after this break,

the, the russian states never is as tight as i'm one of the most sense community best. most all sense and up the, in the system must be the one else holes. question about this, even though we will then in the european union, the kremlin media mission, the state on russia to day and split the ortiz food next. even our video agency,

roughly all the band on youtube tv services. what question did you say a request for check? the welcome back to going on. the ground is still here with the advisor. best selling all the money gti in the threat to the global economy. jim rick, are it's jim you were talking to me about how your modeling showed who is going to win. this is presidential elections better than anyone else on us. i do want to get onto. i'm again, i keep interrupting. is it so many themes in there? while i can, i've got to go to have mentioned the nuclear threats. your a big fan of charles, so i'm just p s. and the russian lieutenant colonel status of petroff. uh yes. what

do you did in 1983. just explain those 2 names and as significant in the book and do all our lives. a sure i still have a few chapters on the capital markets market crash and banking panic. and we talked about the bias, but i have a chapter on the national security, but specifically about nuclear were fighting. now i started studying if we were fighting in 1969 and that was based on the works of scholars mostly done in the, in, in the 19590 in 96 is it was a albert and the roberto most other. and that's a henry kissinger, but maybe the biggest brain was harming tongue. and harmon, con no basically said, here's, here's on typically where is it gonna start? nobody's going to wake up on a sunny day. so nice. i think i'll fire off and you blow your weapon. he developed what he called the escrow tory louder who is actually 54 step louder. and you said what happens is to antagonize one's or something. provocative the other one

response, you know, in a more aggressive way, the 1st party you know, raises the, and the, and you keep going, getting more more violent or, or confrontational. and you don't realize that you are climbing the escal joy louder. you are climbing it ladder towards noon, so you're not elation by the way, they were to die. and i was in the world today right now that are following the pattern that herman con, outlined in the early ninety's. sixty's one is ukraine. so again, without revisiting the whole history, you know us as sponsors occurring 2014, put and takes crimea. we get weapons to ukraine, put and engaged, done, boss. we start signing, bradley, fighting vehicles, and abrams tanks and attack dismissals and patriot missile batteries and where she comes back with them. can you on there? so cypress sonics drones and a lot more. again, if you can debate to where we can take that to the bar, but my point is that there's an escalade to a patent though. there's no question about it. same thing in the middle east. again,

starting with the, with the massacre on october 7th, 2023 israel and those guys a possible outliers, missiles, israel taxes, belong around. and israel start shooting at each other, the hudy's clothes, the red sea. and the, as soon as you know, again, take aside argues you politics of it, but there's no question that you're on an escal atory path. and there are nuclear powers all around us, russia, israel's nuclear, a nuclear power around so far away. and so you're on exactly the dynamic that con, describe what all this cons. advice comes advice that 1st 3 steps. first step, recognize that you on the ladder. don't engage wishful thinking. don't pretend other words you are on that also the toilet. never to take a b stock. number 3, climb back down, de escalate, find a way and back down that ladder so you don't get to question if we're not elation. and of course, the cuban missile crisis was a power dynamic case. now, between today when we're on the ladder and 9062, when we climb down,

there were 2 cases in the 1980s. one in particular, um, the russia actually had a low. so if you and you have the time, but basically russia, they had 2 forms of primitive a, i that we using ai at the time. and it has system coding ogo. and it was designed to detect incoming us ballistic missiles. and one day it is 19 a 3 a day and actually gave a launch signal is cuz the, the worst bodies treasures launch on warning when the other side shooting it. you don't wait until the missiles land wants your muscles right away. so they're not destroyed on the ground. that's called launch on wandering. so this gave a last signal. now, lieutenant comstock petroff was sort of the signal and his orders were call his superiors moving up a chain in other words. and that could very well have resulted in the soviet union firing missiles of us. but he had worked on the system. he knew it had flaws, and he saw that there were 5 muscles coming in. and he said yourself, well,

if the us were attacking the soviet union or russia, they wouldn't send 5 missiles, they would send 200 missiles. so it must be a mistake or false. alarm turned out. it was, it was the sun hitting the clouds on the certain way and reflecting on the radar and triggering of false alarm. but he disobeyed orders. he does not call as seniors the wages out that his life and his country that he was correct and he was and later became known as the man and save the world. another case, so just be brief. there was a us, a need, a war game going on at a time when the cage u. b. had concluded that if the us got sufficiently far ahead of russia, they knew that were habit of that gap wide and the r saturday, you know, economic military said her superior already to a certain degree. they would be very likely to fire the best they do and if we were attacked while the were getting that native was conducting was a nuclear attack. it was a game, but that was what they were simulating. and the case you be saw that they completed was

a front or sham for an actual nuclear attack. they were getting their bombers read either missile silos prepared. and then it was a lieutenant general um, uh the troops and u. s. army who saw this, and de escalate here, the word game to take, you know, take a pause and, and stop further action the case you be picked up on it and they, the escalated and that was that. so the point is we had 2 near nuclear wars in the 19 days, why didn't we built a new blue where it will currently try to kind of touch off lieutenant general troops and relied on guidance. they relied on their got the right tuition common sense. they dissipate orders, they risk their countries, that they felt it was the right thing and they were right. but my point is a, i cannot do that. that's called add. dr. blodgett again we, we, we've had inductive logic. you know, since david schuman deductive logic since aristotle, but there's

a 3rd branch discovered or create a just identified by a child, sanders pearson, the 19 or person, and $0.19 traits called abductive logic. and is, i don't want to digress some of the whole essay on that as a big subject, who is a potter semiotics which is the basis of philosophy today. but what it, if you want to put it in plain english, is common sense. it's got insane. does intuition so things that make you like, i mean you much if you haven't, sorry to interrupt, but you mentioned the economic superior. all righty. and of course this is a, this is a big part of, of this book. i mean, clearly the i there when it comes to of being in the military is not safe. that's clear from the inductive reasoning that's required. but uh, if the economy is still working by the time this interview is broadcast, because if you read your book, it can happen at any moment. at the way flash crashes happen mean that everyone's livelihoods could be destroyed at a stroke. if so,

it and reforms that you recommended. the book on not made that. that's correct. and the point i make is that it happens. there's something called flash war. so i talked to the cuban missile crisis played out every 3 weeks. the 2 issues identified in the, in the 19 news played out the matter of a day or one case a few weeks. but with, with a i in the nuclear kill chain on both sides. you could climb that ladder in minutes and back to legion. if we were in i elation. so my vice a pretty simple keep a i, i'll be killed saying, do you want to have it off to the side or some kind of alice or something? fine. maybe be a, be careful with it, but do not put it in the decision making process or you will get those kind of results. and just how does these flash crashes work right now using a i, they using a i right now. right. well, um, you know, you have a, uh you have a football game and you don't have a very good deal. there's a purse in front of you is too tall or very big hat or whatever. so you say, why have a solution or stand up?

and you stand up and yeah, i can see everything is great, but what happens next? well, the person behind you stands up, and the person behind her stands up. and before long the entire stadium is on their feet. and nobody's better off cuz relatively speaking, you're the same and everybody's worse off because your, your stand that you're not sitting comfortable. that's called the fallacy of composition. and the idea is something that works for an individual as a good individual strategy. when you stood up, you could see better. there's catastrophic yes scale. now let's take that over there, capital markets, and how does that work? so you have a market crash again, not uncommon. we saw it in march 2020 market, so 30 percent and 30 days. and so what did people do? they watch it for a couple of days and i like you know it, i don't want to lose money on that. they sell everything. go to cash, move to sidelines. wait until the market is fine and then they can tip to back in and catch the next wave up. that is a very good individual strategy. that's not a bad thing for person to do. but what happens when everybody doesn't?

you very quickly have all sellers know buyers, you blow to the circuit breakers, you go through the floor and the market is actually have to be close. it's not even a matter of time out. you actually have to close the markets. and the point is that that's an aspect of human behavior. it's why circuit breakers so called word vent or ins installed after the 1987 flash crash. but with a i, everything i just described happens again faster, is accelerates, and it amplifies what would be human nature. so truly the combinations, human nature combine with excel around of a i that makes all this up and much faster. and regulators realized, and the result is that again, you can be wiped out the effect your, your, your exchange traded equity that you think up is liquid, turns into private equity. you still on it, but you can trade it, you can't get cash. and then no regulation, so you recommend some kind of truck lane of the market and other elements that i've just got to because we're running out of time, just ask you what your advice is. usually some i've seen your advice is the diverse vacation is being a bit,

but now the had to you believe that we live in very precarious economic times in late capitalism. and but why do advisors occasion as well, among academics and their additions? it's a well understood strategy for those, for those rich enough to be able to that. but as i should say, for view as well, living paycheck to pay, you know, i, i want, i want to, i was with the tax driver in las vegas and we got, we got on the subject to go, i think it was, i was there to give a speech on gold. uh she said, what can i do? and i said, well, um you can buy one go client. you know, at the time it was about $1200.00 to buy one gold coins. but it is a place and that, that, that well to be preserved. so yes, the problem with diverse vacation i, you recommended people go on diversified. i own 50 stars and 10 sectors, semi conductors mining can silver, non doorbells, et cetera. and i say no, you're not, you may on 50 stars, but you're in one as a class, which of stocks, and they're all going to go down to get a real diversification names. and by the way, were specific references

a i non digital assets. i'm not talking about crypto currencies, stocks, bonds, commodities are all traded on digital ledgers. but things like gold, silver, land, fine art, natural resources. and if you like private equity and venture capital where you don't expect liquidity or you're in it for 5 to 7 years. so having that, a lot of cash, i mean that there's some significant percentage of your portfolio. 30 percent, maybe more. if these flash crashes happen and they will, i mean it's just a matter of time. the rest of your portfolio will be preserved and your wealth will be preserved. gym regards. thank you. thank you. and that's it for the final show of this. the money gti and the threats to the global economy is that now i'll continue condolences to those suffering in the holy land. this christmas at the hands of u. k. us, you um, genocide will be back on saturday. the 18th of january for brand new season, until then we'll be hearing your favorite episodes of the season every saturday and monday. remember, you can still keep in touch my all social media,

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