Coffeezilla: SBF, FTX, Fraud, Scams, Fake Gurus, Money, Fame, and Power | Lex Fridman Podcast #345

YouTube has the video Coffeezilla: SBF, FTX, Fraud, Scams, Fake Gurus, Money, Fame, and Power | Lex Fridman Podcast #345.

Coffeezilla is a journalist and investigator on YouTube who exposes financial frauds, scams, and fake gurus.

I have only had the time to listen to 1 hour of this 3 hour and 46 minute interview. One of the places where I think they are missing the boat is to not realize how fraudulent and worthless the whole idea of crypto-currency is. Read Michael Hudson’s many books on the history of money and how government money gets its value. If you haven’t read Michael Hudson or other experts in modern money theory, you have no idea how money works. Lex Fridman has not done the required reading. As good as the interview seems to be, it could have been so much better if Lex knew whom to talk to.

They talk about the importance of decentralization of power. I always think that decentralization is very important in making systems anti-fragile. Too much power in the hands of a small number of people whether they be in private enterprise or in government is very dangerous. One thing that gets missed in the argument of capitalism versus socialism is the value of competition among small centers of power. Diversification is a central tenet of safe investment. You never can be sure whose ideas will be best for the future. That’s why there is some wisdom in the rule of thumb that it is not safe to put all your eggs in one basket. It is valuable to have many people trying different ideas, to see which ones actually pan out over time.

The other issue is the inevitability of some fraud. If you build any system that depends on the absence of fraud, that system will be doomed to failure. Asking honest people and especially ones who have no experience detecting fraud how a con artist is going to invent a fraudulent scheme, then you have committed yourself to unilateral disarmament. That is what I learned from reading William K. Black’s book, “The Best Way to Rob a Bank Is To Own One.”

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