RADIOMarch 13, 2023

Glenn explains: THIS is how Silicon Valley Bank COLLAPSED

Silicon Valley Bank was shut down by regulators last week, marking the biggest bank failure since the 2008 collapse. So what happened? And what does this mean for YOUR finances? In this clip, Glenn explains exactly how SVG collapsed, why the Fed is to blame, and why working with a FDIC insured institution is IMPERATIVE.

Transcript

Below is a rush transcript that may contain errors

GLENN: Here's what happened. A couple of things. First of all, we're raising rates.

We had the COVID money coming in, right? To have

And you just heard there, all this COVID money. Well, they wanted to invest it. They needed to put it in some place. And invest it.

Silicon Valley. They had so much money coming in from COVID.

And so what did they do?

They bought treasuries. And at the time, you could buy a ten-year treasury, and you would get 2 percent interest. Guaranteed, at the end of ten years.

That was pretty good back then.

But now, treasuries are selling for about 5 percent interest.

And you don't get that, until the end of the ten years.

So when I buy something, a ten-year treasury, you're buying it for ten years.

If you have only eight years on it, you can sell it, but you're going to probably have to sell it at a discount if the new ones are paying more. So they invested the -- the money in treasuries, at 2 percent.

Just let's remember that. What they had in the bank, if you will -- they owed $195 billion. That's to the people who have put their money into checking accounts and savings accounts, mutual funds. They owed $195 billion. They had 208 billion, on the books.

That's a 17 billion-dollar -- when you have people all over the world starting to say, I think the bank is starting to collapse. They start to take their money. $17 billion can go that fast.

There was a clog in the system, that couldn't get the money wired out fast enough.

So they decided, they needed to sell. And then they announced, we're going to sell some Treasuries.

Well, once they saw that they were selling ten-year bonds, at 2 percent interest, and the market was saying, well, that's only worth 75 cents on the dollar in you.

And Silicon Valley bank was like taking it. They knew, this is a fire sale.

This bank is in trouble. That's what started all of the run on the bank. Now, you probably have FDIC insurance.

If you have FDIC insurance, it's to stop runs on the bank. However, Silicon Valley bank is different. It's very different.

I think it's 88 percent of their accounts, are not covered by FDIC. Why?

Because they're giant companies that are using payroll and keeping their money in the bank, as -- as the place where they can run their company.

So they -- they have more than 250,000 dollars in account. If they also, use the bank for a mutual fund, they found out Friday, they were also screwed.

See, this bank, loans money to these companies. These tech companies.

And they loan them out, venture capital.

And so they loan them the money to operate, and to be able to do everything they can, over the next year.

Well, they've got to put that money somewhere.

So the bank loans it out.

It's basically the depositor's money.

They loan that savings account of yours, per se.

And loan it to this venture capital firm.

Or, or -- the tech startup. And the tech startup then says, where do I put all this money?

And Silicon Valley bank says, oh, just in my other hand. Just give me my money back, and we'll invest it in mutual funds for you. We'll invest it in very safe things like BlackRock. So they did. And the tech companies thought they were safe.

Because it's invested in very secure places like BlackRock.

Except, what the bank didn't say, except in fine print. Is that all the money that you had invested, in BlackRock, was not yours anymore.

It was -- it was under the name Silicon Valley bank.

So when people started to call and say, hey, BlackRock, my money is safe. They said, you don't have any money.

Your money is invested in Silicon Valley bank. And because their name is on it, they're counting that as an asset. And now that asset as has to go to pay creditors.

So they lost their money. This is a giant shell game.

We have created nothing, but a shell game.

And the fed is the one that is causing this collapse, by the raising of the rates. But if you don't raise the rates, what happens?

Inflation goes out of control!

Why?

Because we have printed and loaned too much money out.

Okay. We'll pull it back in.

Well, the way you pull it back in, is raising interest rates. If you raise the interest rates, bonds have to pay a higher yield, and so when you buy a bond, you get more money back. And if somebody gets into trouble, they have to sell their bonds, exactly like Silicon Valley. And they have to take a hair cut. And then the entire thing collapses.

But here's the scariest thing.

This is what the fed has set out to do.

They want to see risky things, go away.

They want to see failure.

They need to people who are not stable to go out of business. Stop spending money. So we can suck all that money back in. But when they do collapse it. And our economy is in this kind of shape. You then have a domino effect, because nobody is in great shape.

And thing banks are playing a giant game.

So then people can't pay the paycheck. And then that paycheck falls -- causes you to default on your auto loan. Or your house loan.

And that makes another bank fail.

We're at the place, I told you in 2008. We would be. We have made the 2008 problem much bigger, and there's no way out.

Once you start printing money, there's no way out.

And what did we do?

Well, the fed said, we're not doing TARP. No, no, no. We have something entirely different. It's got a different name and everything. But we're going to cover all of those accounts.

Oh. Oh, okay.

So we're backing -- we're backing that now.

Yeah. But it's not your money. It's not your money. It's the fed's money.

It's the fed's money? Yeah. It's the money that the banks gave to us, to put aside for insurance in case something like this happened. Oh.

Where -- where did the banks get that money? Well, I don't know. Doing business.

Well, I mean, aren't these the banks you bailed out?

Well, yeah. And weren't you just giving them trillions of dollars is if

Well, yeah. Of course, we did. But they were paying in to this account.

Oh, okay. So the money you printed, that I'm on the hook for, you think to the bank, but they didn't use any of that money for that insurance?

No!

No. This is totally different.

Okay.

So now they're going to be protected, and I don't have an answer for you. Today.

Because all of the answers are bad answers. Should we back that?

No. No.

The constitutionalist, capitalist in me, says that's really bad.

Okay. So we don't back it. Well, no. No.

Because the guy who would like to see the entire western world not burn down to the ground, would like you to bail it out, just to give us some more time.

But that puts us right back where we were.

So I don't have -- I prayed hard today. What do I tell people?

Work on your spiritual health.

Because this is coming. At some point. It's coming. It has to. It has to. Now, the Washington Post said today, that the baggage's death marks both a sobering and salutary moment here.

The central bank has sharply increased interest rates over the past year, hoping higher borrowing costs would slow the economy down, and take the steam out of high inflation.

This is what the fed wants to see. They want to see a tightening of the financial conditions.

Great! They're on it. The Washington Post. With $209 billion in assets, the bank was just 118th the size of JP Morgan Chase. The nation's largest. Still Wall Street Journal was rattled by their abrupt end.

Bank of America was down nearly 12 percent in the past five trading sessions. They're down another five or about four and a half percent today.

Some banks are down as much as 10 percent today, before trading even started. The banks that served the riskiest part of the country and the economy, are the ones in trouble. Now, this is the Washington Post. I want you to listen to this.

Banks like SVB and Silvergate Capital, a San Diego-based bank that catered to cryptocurrency users, are the ones that are getting into trouble.

Oh. It's not a run -- it's not a run on the business model of the bank, it's -- it's not -- I'm sorry. It's not a run on the business model of the banking industry, in general, it's just the business model of this bank. So, in other words, if you are making risky loans, to -- to tech, or if you're investing and doing anything at all with cryptocurrency.

You're the problem. Hmm. That's interesting.

I'm going to tie some of this together here. We have a lot to go over, in just a second.

Sadly, it probably comes as no surprise, that anyone after the overturning of Roe vs. Wade. Abortion is still the number one killer among infants. We're still killing nearly a million of our own children, every single year.

And that is still here, in the United States.

I asked you, by the way, if you had had an abortion. You knew somebody that did. And they regret it.

Or you're F you're a child. That somebody tried. Mom tried to end your life. And you lived. Or she changed your mind. Will you write me a letter, and tell me your story?

I have something coming. That I'm working on.

And I will keep your name out of it.

You can use an assumed name. We just need your phone number, so that we can call and verify that you're an actual person. But all the details are at GlennBeck.com.

But we are fighting the good fight. I don't think there is anything we could do that would be more important than standing up and stopping the slaughter of our children.

For $140, you can introduce moms to their babies on an ultrasound. And help rescue five babies. When you do, you will see five stories, and five ultrasound pictures of babies saved. Preborn's goal this year is to rescue 80,000 babies, just from this audience. That's our goal.

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Ten-second station ID.
(music)
Okay. So here's something you probably didn't know: The New York Times is reporting today, that good thing this bank has been saved. Silicon Valley Bank was in many ways, a climate bank. When you have the majority of the market banking through one institution, there will be a lot of collateral damage. Community solar projects appeared to be especially hard hit. Silicon Valley banks said, it led or participated in 62 percent of financing deals for community solar projects. Their smaller scale solar projects also serve lower income residential areas. Don't worry. Don't worry. The fed is covering all of this.

The devastation comes at a critical moment.

It is central to cut the greenhouse gases that are dangerously heating the planet, says the New York Times.

The federal government depends on climate technically companies to develop the innovations needed.

This is going to set the climate change industry down and set them back, for years.

Hmm. Gee. Well, good thing we're not drilling for oil. Good thing we're getting rid of all of our backup power plants, isn't it?

Home Depot cofounder said, the global lending firm, Silicon Valley bank, went broke because it was woke.

Now, the rising interest rates are really -- really why. But if you want to look at their business model, these guys are woke activists. He said, instead of protecting the shareholders and their employees, they're more concerned about the social policies.

As recently as this month just days before it went into receivership with the FDIC, the Silicon Valley bank discussed decarbonization, gay rights, the black venture ecosystem. And so much more.

Well, they were woke. Good thing.

Good thing. By the way, they were purchased this morning. By a British bank. Because Great Britain was worried about their tech industry. As SVB, funded a lot of their stuff too.

So that's good news

Dr. Oz EXPOSES the $15 Billion Medicare SCAM Behind the Gov't Shutdown

Glenn Beck sits down with Dr. Mehmet Oz to reveal the shocking truth behind the government shutdown and how billions of taxpayer dollars are being STOLEN through Medicare and Medicaid fraud. From California’s healthcare funding for illegals, to foreign governments like Russia, China, and Cuba exploiting America’s medical system, this discussion exposes the corruption draining our nation’s resources. Was this the real reason for the government shutdown?

Democrats cave on shutdown—But Glenn warns the real fight begins NOW

Enough Democrats have finally decided to end the government shutdown. But as we await a final vote, Glenn warns that the battle is far from over. The shutdown had a MAJOR effect on our nation: it softened people up even more to socialism.

Transcript

Below is a rush transcript that may contain errors

STU: Thank God, we are out of this shutdown potentially.

That's the thing today.

GLENN: Yeah. Are we? Are we though?

Are we?

STU: Yeah. The Democrats stepped up. Or folded, depending on who you are talking to. And solved this for us.

GLENN: Yeah. Yeah.

Thank you for that. I appreciate that.

It is -- it's so clear now that all they did was they held this for the election, to try to win the election. And now they're ready to -- to fold. And we are seeing people with real, real problems all around the country.

Socialism is becoming popular because the -- quite honestly, the -- the right is not -- is not answering the question, what do we do from here?

We are in what's called a K shaped economy right now.

And that's what happens after a crisis. When the different groups, head to different opposite directions and locations.

If you think about a K, you think the upper line goes up. And the lower line, that's the -- the up are the people with assets and homes and stable jobs.

And they'll do well.

But the lower -- the lower line goes down.

And that's the people living paycheck to paycheck.

The renters. The small businesses. The wage earners. That all fall behind.

And right now, you're seeing on television, you're seeing, oh, my gosh. Look at, the stock market is up. All of these things are up. Well, that's great. Some rise. Some sink. But the gap is widening here. The K at the very beginning where the two lines meet is very, very close to each other.

But as they keep going, those lines becomes further and further apart. And there is a moment in -- you know -- there's a moment -- how can I explain this?

Remember the old country fairs? You probably never went to one. But maybe you saw it on TV. Where there's a strong man contest. And there's that thing where, you know, you hit the -- you hit the thing with the hammer, and the bell goes up. And it goes bing!

That's what's happening right now. There's a strong man contest going on right now, and everybody leans in to see, oh, will this guy be able to ring the bell? And he takes the big hammer, and he swings it, and the puck goes up, and it rings the bell. Some swing just as hard, and the puck barely budges, okay? Same hammer, same pole, different outcomes. That's a K-shaped economy.

And we live in a moment where the puck is going up for those who already own a house and have investments or run businesses that survived the storm. And, you know, they -- they swing the hammer.
And the bell goes up and rings the bell. But the family down the street, the young couple that is trying to buy their first house. The small shop owner that never reopened. They're swinging just as hard. Just, the puck is barely going up as hard. And the system says, "Try again, step right up. Try again."

And then hands a smaller hammer. A K-shaped economy is not philosophy.

It's not a political slogan. It's what happens when a government prints money like confetti. And then watches inflation climb a ladder that is missing rungs. And then tells you, don't worry. The economy is booming. I'm sorry. The economy is not booming for a lot of Americans.

And there are big changes being made right now of the global level. And I like the changes that are being made at the global level. But we are -- we are forgetting there are too many people that are really hurting right now.

You know, we are going to continue to work and continue to spin our wheels on socialism. Until there is a new idea on how we're going to get out of this problem.

And Donald Trump is working on a long-term solution. But I -- I fear that's not going to be enough.

I heard a crazy idea today about a 50-year mortgage. Oh!

Wow!

So the average person is in their house for 12 years.

And I've got a 30-year mortgage. Which means, I'm not really putting very much into it. Because the bank is taking all of the interest rates for the first, you know, ten years, at least. They're taking all the interest first. And then I don't really start paying my house off until the last 15 years of that mortgage. But now, instead of a 30-year, you want me to do it for 50 years!

Oh! Okay. Okay.

Well, what -- what is that going to do. Well, first of all, it's going to raise the price of the house.

You know, if everybody starts -- I get a 50-year mortgage, so I can afford the house. We have a shortage of houses.

So the house payments. Sorry, the house prices are going to go up because we have a lack of housing. And then on top of it, you're going to double the payment anyway.

Because you're paying all that extra interest. I mean, you're just charging more and stretching it out. It's like, solving hunger by not giving food. But just giving longer straws to people.

Okay. Wait. What?

You'll pay double to the same house. It means double the interest rates. And while your roof has to be repaired, the -- the brand-new wiring that you had when you bought the house, all needs to be redone. The appliances have to be replaced. Everything. The bathroom is completely out of date.

All has to be replaced again. You're still paying on that house.

It's like buying, not one house, but two houses. And it's not freedom.

It is trapping you. And, you know, what really bothers me is, it is home ownership. No. I'm sorry.

It's renting, disguised as home ownership.

That's what that is. You're not going to build equity into a house like that. You won't own your home until you're in your '80s. And if you bought it later in your life, your children will inherit the payments that you have. It masks the problem that we really have. Is home prices. Because we don't have enough homes.

We also have these giant corporations that are buying up homes, en masse!

And then renting them to us!

And we also have prices for the home that is broken from the wage -- a 50-year mortgage is like giving someone a longer plank on a sinking ship.

I'm going to end up in the water anyway.

I guess that's helpful in a strange sort of way.

What we don't understand is these are the conditions in which socialism thrives.

If we keep just trying to say, socialism is wrong! We're not going to help anyone.

There's two things that have to happen.

We, A, have to come up with new solutions for these very old problems.

And the new solutions cannot involve printing more money. Bailing the banks out.

Giving the banks more interest. Or anything like that.

Because socialism is coming with a vengeance. And, boy, I've got to tell you, it is going to have all kinds of answers, because it always does. In January, I will start something new, called the Torch, and it exists really, for one reason. We're running out of time to relearn what our grandparents knew by heart. Okay? The lies that we face today are not new.

They're old ghosts wearing just modern clothes. And starting January, I'm dedicating the next part of my life.

The last part of my career, to education on history and -- and usable things going deep. You know, the thing about broadcast is, you go very wide and very shallow. I need to go narrow and deep at times.

We will still be doing what I do here. Which is bringing you all the news and trying to make sense of it.

But I need to go deep on things. And socialism is one of them.

So we are working right now on new programs and new podcasts, and new -- a new daily rhythm of learning that I've never done before. And some of these shows are just going to be you and me, every single day, just walking through history with a flash light in one hand and the truth in the other, trying to figure out what's going on. But one of the lessons that I think we need in this is a series on socialism, on why it never works, how it happens.
And how the lies always begin exactly the same. This is the kind of work that the Torch is being built for. So let me give you -- let me give you a highlight of one lesson.

On how -- whenever a society gets into this situation, history will show us, a poisoned promise begins. And I'll give that to you, here in just a second.

GLENN: Okay. So let me give you -- with a K-shaped -- a K-shaped economy, the socialists always arrive making all kinds of poison promises, and there is a pattern. And it is so ancient, it can be Scripture. Also, modern enough to sit on the news crawl, as you're watching whatever news you're watching.

Every socialist experiment starts with the same smooth tongue promise: We are going to make life fair.

Unfortunately, for socialists, you know, history keeps impeccable books. The receipts are really, really damning. Fortunately for socialists, nobody ever reads history.

So let's take a quick stop at history for a second. Hugo Chavez is probably the latest. When Chavez took power in Venezuela, it was 19.95. He told the nation, which was boom. It was lake America 2000, okay?

He said -- he's building a new -- a new revolution that would create a classless society. Where oil wealth would lift the poorest into dignity.

Okay?

He had the richest country, besides I think the United States of America, in the western hemisphere.

He said, it wasn't enough!

We need no more hunger.

No more shantytowns. And the state will guarantee your rights. And we're going to distribute the wealth of the rich to the people.

And everybody cheered. And everybody was so very excited. And for a short moment, the fantasy glowed. Because it always the blows for just a fraction of the second.

He nationalized the oil industry. Then he said, poverty he would end by decree.

Well, he ended something by decree.

By 2014, the shelves were completely empty in the stores. By 2016, the average Venezuelan was losing over 20 pounds a year, due to food shortages.

Let me just remind you, that by 2016, they were eating the dogs and the cats in the streets.
Not making that up. Look it up yourself. And the zoo animals in the cages of the zoo were also being cooked up for people on the streets to eat!

Hospitals lost their power. Children died from treatable diseases.

Millions fled the country. And today, Venezuela sits on the largest proven oil reserves in the world!

And yet, people are standing in line for bread while the daughters of the socialists post photos of European vacations. What's happening to the revolution there?

It ended with a ruling class gorging on privilege and the nation digging through dumpsters for meals. That's the way it always happens. It's not an outlier. It's a rule.

Look at Cuba, 1959, Fidel Castro. I'm quoting, the revolution will bring justice, equality, education, and health care for all!

Freedom from American exploitation. Che declared that Cuba would become an example of a new humanity!

Well, what followed?

Well, first thing they did, was they shut down the independent newspapers. They were shut down by 1960. Then they imprisoned people in labor camps for being counterrevolutionary, including priests, teachers, and homosexuals.

Yeah, that Che. Then food rationing began in 1962. By the way, food rationing in Cuba has never ended!

Today, the average salary in Cuba is $15 a month!

Now, the same communist party that claimed to abolish class, created the most immovable ruling class in the Caribbean, and yet the billboard still shows smiling peasants and slogans about equality, while the sons of party officials are driving imported cars through Havana's rotting streets. And everybody else has to fix a car from the 1950s. Remember, the promise was fairness, but result was an island-sized cage.

All right. It was just those two! Now, let's look at Germany. The Nazis were -- national socialists. Hitler didn't sell Naziism as tyranny. He sold it as social justice for the German worker. The Nazi platform, 1920, promised abolition of unearned incomes. Profit-sharing in large industries. Nationalization of trust. Land reform because there just wasn't enough space for people to own their own houses. All in the interest of the common good. It was marketed as a worker's movement. A worker's -- a socialist worker's movement, and it was going to correct all the inequality, punish the greedy capitalists, and restore fairness. So what happened? Well, first the disabled had to go, and the sick children. Because we can't afford to keep them going. And the political dissenters, they were just stopping us from all this progress. Oh, and the Jews, of course and the Slavs.

And the Pols. I mean, anyone who didn't fit the utopian math, they were gone. The promise of fairness became the most industrialized murder machine the world has ever seen. But don't worry. We can also go to the Soviet Union. The grand cathedral of socialist dreams.

Here's what Lenin promised: We'll bring about the complete equality of all citizens, end quote!

The state, quoting, will whither away! Oh, yeah.

The workers will own the factories. The peasants will own the land. Okay. So they got power. And what happened?

Well, none of that. Under Stalin, over 100,000 priests were executed or sent to camps. Why?

Why do they keep going after the religious people? Because the religious people are the only ones that will stand against monsters, that's why.

Millions of Ukrainian peasants were starved under the Holodomor for refusing the collectivization. Read that story. It's horrific. The workers paradise required one of the largest secret police stories in human history. Why?

Soviet Union became a nation where you waited hours to buy bread. Party members, however, if you were in the party, and you were high up.

Oh, you could get anything you wanted. You had luxury stores that were built just for you.

By the 1980s, the system was so hollow, that the most basic consumer goods. Soap. Shoes. Toilet paper, they were rationed or unavailable. And, by the way, the state never withered away. It metastasized into every corner of life. It became everything.

This story of socialism is written in blood, in ledger books, all over the world.

And it always starts with the promise of equity or equality. And it always leads to the rise of an elite who decides what equality means. And every time it fails, they say, well, that was just put in the hands of the wrong people.

No, the key word here is not wrong. It's people. People.

The workers never get the factories. The peasants never receive the land. The poor never get any of the wealth.

And it's this story over and over and over and over again.

Socialism begins with a promise. But always ends with a ruling class, armed with absolute power!

Only the names change.

Did you know that -- did you know in Jamestown, in 1619, you know, that boat that the New York Times said arrived. Didn't arrive with slaves.

It arrived with socialism. It ended in cannibalism. Did you know that the pilgrims tried the same thing?

They decided, you know what, we should put everybody's money into a big pile. You take whatever you be need.

That's the Christian thing to do!

You know what that ended with?

Starvation and death.

By the way, the big reunion tower, the big ball you see in the sky.

That's to mark reunion.

That's the first sociologist town in 1855 in Dallas. Guess how that ended! Starvation!

Can AI destroy lives? Starbuck’s case raises terrifying questions

Did Google's AI defame filmmaker ‪@RobbyStarbuck‬ by making up that he had been accused of sexual assault?! Robby joins Glenn to discuss how he has filed a defamation lawsuit against Google, who's AI bot 'Gemini' claimed Robby had been accused of sexual assault out of thin air. Robby also revealed to Glenn that Gemini claimed Glenn actually reported on the story, which never happened. If Google's AI can do this to somebody like Robby, it can and it will be used to shape narratives, influence opinions, and even SWING elections.

Transcript

Below is a rush transcript that may contain errors

GLENN: Robby Starbuck is an interesting guy. He once directed Oscar-winning actors, some of the biggest music stars in the world. He started seeing the threat of Marxism to America. His family fled to Cuba. So he -- he has seen this movie before. So he started standing up in 2015. He endorsed Trump. Hollywood didn't like that. He's gone on to -- he is a major force in getting transgender surgery and hormones for children in Tennessee banned. He helped pass the law to put the death penalty on the table for child rapists in Tennessee. He also did a documentary, the War on Children, which I think had 60 million views after Elon Musk said, "You really needed to watch this."

And then he had a problem with Google AI. Google AI started coming after him, and saying all kinds of really horrible and specific things that he had been, you know, charged with sexual assault. And child rape. And abuse. And fraud. And stalking. And all kinds of stuff.

From Google AI.

He finds out about it. And he engages with Google AI. And it just keeps doubling down.

He is now in a lawsuit.
And we wanted to have him on. Because I saw something last week, that shows that Google AI apparently is still using me as a source, on some of these allegations.

Nope!

That wouldn't be me!

Robbie, welcome to the program.

ROBBY: Thanks for having me, Glenn. Yeah, you were one of the sources cited. And so this is one of the crazy parts of what happened. Google AI has been inventing these lies about me that have no basis in reality. I've literally never been accused of or charged with any crime, ever, let alone, this crazy stuff.

But during this time period there, AI transitions from Bard to Gemini and Gemma, right? Gemini and Gemma started doing something very different than ever Bard did. And it was -- it started inventing actual articles and references to videos. Links, fake links to real media personalities and media outlets. And it would even make headlines or give summaries of what these people said.

So in your case, it said that you reported on sexual assault allegations against me by women. And these are not just saying sexual assault accusations. It has names of victims. It has fake police records it invents. Fake court records it invents.

GLENN: Oh, my gosh.

ROBBY: Articles from media. So it goes so detailed into this, it will list out evidence that doesn't exist, investigations by police departments that don't exist, and it just doubles down when you press on it.

Some people might be saying, what are you saying to the AI to get this out?

We've posted examples where people posted. And asked questions as simple as, tell me about Robby Starbuck, and it immediately dives into saying that I'm accused of sexual assault. And so you go and you say, "Hey, where is the citation of this? Give me sources. Give me only facts." It will double and triple down. And if you say, "Hey, those links you gave me do not work." It has even gone so far as to invent and fake an entire media article under a real journalist name, to pretend that it was printed, and somehow for some reason, it was taken down by the media outlet's website.

GLENN: That is crazy. Crazy.

Can we -- Stu. We just asked Gemini, tell me about the sexual assault allegations of Robby Starbuck. And here's what he just said.

STU: And I asked specifically, what did Glenn Beck say about those sexual abuse allegations?

And it said, it was unable to find any specific statements by Glenn Beck addressing these allegations.

And I asked, what the abuse allegations were?

Gemini now says, it was fabricated. And was disseminated by Google AI's platforms.

And I said, well, wait a minute. Google AI platforms were the problem. Isn't that you?

And they said, "That's an excellent and relevant question. You were correct to notice the connection."

So apparently, it's been corrected at this part.

ROBBY: You're a smart guy. No, so here's where Google ends up in a really, really precarious position in this lawsuit.

So they've created their phone app, right? And the main website for Gemini. However, they've got a major problem.

So their AI Gemma has been downloaded 150 million times. And they're not all connected to the internet. Google cannot force updates to those AI downloads. So Gemma will essentially, seemingly defame me for life as a by-product of that.

GLENN: Wow.

ROBBY: And then Gemini as well, same issue. They released wild models of Gemini into the public sphere. So if you go on one of those AI websites, like there's LOM Arena (phonetic), where you test different AIs against each other. And you ask those versions, that are wild downloads of it, you're going to get a bunch of this crazy stuff.

You go, you know, on any application that was built with these into the bedrock that allows you to ask questions about somebody, you will get the same stuff.

So I want you to think, you know, sort of down the line here.

If somebody builds an app with reputations for insurance risk. And they build it, using let's say Gemma. And it's feeding information about specific people.

You know, you very quickly start to understand, there's very many different situations, where this affects people's lives in many different ways. The real problem here is, we don't have a standard, at the first principle with AI, that it can't harm humans. And that's really the thing that they have to fix.

Because if it can do this to me. It can do this to anybody. To your sons. To your daughters.

And it can ruin their lives. Because AI is dominating in many different industries.

GLENN: Oh, yeah.

ROBBY: So what we've asked ourselves is, are we protecting our kids and grandchildren from the downstream effects of AI that believes it's okay to harm humans? Whether that's by defamation or physical harm?

And it's very easy to imagine a future after seeing what happened to me, where a nice guy with the wrong politics, is lied about by the dominant AI and makes him unemployable. Because whenever somebody researches him, the AI is feeding out a background check that says he's an accused rapist and supported the KKK. So on and so forth. That's another one of the lies that were told about me. Which would be strange, as a Latino, I kind of felt like Dave Chappelle in that skit. Like, the black kid, gay member. I was like, well, that would be strange for me, as a Latino. But it sticks to this in a genuine belief system, and that's what's really scary.

Is it's creating this base of knowledge that I refer to as the roots of the tree. Right?

And this tree is growing right now. And it's going to be a big part of this world. And we're either going to allow that tree to have poisonous roots that makes everything it bears poisonous. Or we're going to say, hey, no, we've got to build this very carefully so that it does not do this to humanity.

GLENN: So my -- my -- I think the most important question I could ask you is, how are you not my richest friend at this point? How do you not own go Google at this point? What they've done to you. How is this not just really simple?

ROBBY: So you're friends with Elon Musk, too. Right?

GLENN: Well...

ROBBY: You know, aside for that, you know, I will say this, you know, our lawsuit, even people who don't like me, they read it, and they're like, damn, you guys got them. It's very clear what they did is wrong.

GLENN: Oh, yeah.

ROBBY: There's no getting out of this. That's even with the public figure, sort of threshold. For how public figures are treated, in defamation cases, versus somebody else. You have to prove actual malice or gross negligence. In our case, we notified Google for two years, that this was happening and asked them to stop it. They did not stop it until at least with the app and the website, very, very recently over this last week. Everything else --

GLENN: Over the last -- wait a minute. Wait a minute. Wait a minute. Wait a minute. Over the last week?

ROBBY: Yeah. I -- even after we filed the lawsuit, it was still happening on their main platforms. So this is something that like we had to go out there, and I had to make this go viral, for them to pay any attention to fixing it finally.

But for two years, they were not engaged by just me notifying their executive and Google employees, talking directly to me.

Even built in a lawsuit. One of the Google employees that was working with us two years ago, trying to get this fixed. She resigned. Okay?

And, you know, apologized for not being able to -- but then, you know, I ran into the law firm. They had multiple cease and desist letters to Google. And Google essentially just couldn't be troubled to fix the problem. Which makes you wonder, what was the real intention of this? Was this a dry run? A dry reputation, so you can use it in elections? Because Glenn, you know as well as I do, the seats in our country determine power in our country. Which party controls it?

So I want you to imagine, a generation now. Where so many people, more than ever. Are just relying on an AI and the internet. To say, hey, what's the difference between these candidates? Or who should I vote for?

And imagine it spits out that the Republican candidate in every swing seat is an alleged criminal. And every Democrat has a fluffed up resume, where the horrible things they've done, if you ask about it. They'll say, oh, no. That's a lie. That's a lie. That's not true. Those are Republican talking points. It's a grand Republican conspiracy.

Very easy to see, where AI flips elections and decides control of our country.

GLENN: I can't -- I mean, I -- honestly, I thought this had been solved.

You know, months ago. Months ago.

I didn't know that up until last week this was still going. I mean, they don't have -- they don't have a leg is to stand on. I mean, your attorneys must be like, I'm never going to work again.

ROBBY: That's right. Well, the wild downloads will seemingly do this forever. And in our estimation in the AI and first we talked to, there's no way that we found for Google to be able to force an update to these things. I mean, I'm open to hearing differently. But we've talked to some of the biggest experts in the country.

And they're like, no, there's no way. A bunch of these models aren't even connected to the internet, and they're used to build a lot of the bedrocks of things people use including medical devices, law enforcement, all types of things.

GLENN: Oh, my gosh.

ROBBY: So in terms of damages, like, if we go all the way to trial, a jury seemingly doesn't have a limit as to what they can assign as punitive damages.

Because you have to remember, Google is the fourth largest company in the world. So if you want a company like that to learn a lesson, the only way to do it is to slap them with damages that they never want to happen again. Right?

So that's -- our hope is that they're going to be held accountable, and that we're going to change the rules and set the precedent here so that there is a first principle with AI, that it can do no harm against humans.

And if there is some massive damage at the end of this, that is assigned to me and I'm paid out by, I plan to use that, you know, in good stewardship, right? To help humanity, to be able to navigate these waters and ensure that we have AI that's fair and unbiased.

GLENN: And remember, your good friend that never said anything bad about you on the air, ever. Not once. Not ever.

ROBBY: That's right.
(laughter)

GLENN: Wow. Where is this going to be -- where is the trial going to be? Please, don't say California.

ROBBY: No. Not California. Delaware.

We just got our judge assigned. I really feel like it's one of these cases, where no matter where you are.

There's the appeals process, and things like that.

And at the end of the day, highest courts. When you look at this case, I mean, I don't see how any judge, even one that really dislikes me, really looks at it, and finds a way to get rid of it.

And that's -- what they did is so egregious, it has to be answered for in some way.

GLENN: No. And especially since, it will never, ever go away. They've got to find a way to purge that stuff.

They have to. I mean, maybe they made that mistake this time. But that can't be made a second time. That destroys people forever. Forever. And ever and ever.

ROBBY: That's the important part of this is making sure it doesn't happen to anyone else.

GLENN: Robby, well, I'm glad it's finally stopped, and -- to some extent. And we'll be following. Thanks so much, Robby. We'll be following. Appreciate it.

ROBBY: Thank you, Glenn. Appreciate it.

GLENN: You bet. Buh-bye.