A (35:41)
By the way, Basura means trash. I've been informed by producer Savvy, who is my interpreter. So that is what Spencer Pratt is saying right there. Meanwhile, California determined to cut off its nose to spite its face. They're very angry that there are rich people in California. So Gavin Newsom, the governor, will wander around the land talking about how California is the top income creating state in the nation and how it's filled with innovators and billionaires. And meanwhile, California is actively attempting to undermine all of that, which is the reason why Gavin Newsom, despite his sort of quasi Marxist leanings on economics, has been opposing a referendum that would force a wealth tax onto the ballot. Well, it turns out it made the ballot. According to the Wall Street Journal on Sunday, advocates for the wealth tax said they have gathered enough signatures to place a wealth tax referendum on the November ballot, even as a new study shows it is likely to result in less state revenue. Of course it's likely to result in less state revenue. All the billionaires can leave. See, that's a nice thing about being a billionaire. You can afford a house somewhere else. The proposed ballot measure would impose a supposedly one time 5% tax on individuals with more than $1 billion in wealth. By the way, again, that is very Supposedly there has yet to be a tax that does not expand the minute it hits the books. Remember, the income tax was initially supposed to hit only the very top income earners in the United States and it kicked in at an exorbitant income. And now it applies to half the country and takes a giant chunk of your wealth. This tax, according to the Wall Street Journal, would hit nearly all of a billionaire's assets, including trusts as well as voting interests in a company, if that exceeds his equity stake. And it applies to billionaires who are California residents as of January 1st this year. So if you didn't get out in time, then they would try to grab 5% of your entire wealth. So the reason this is insane is because this also applies to unrealized wealth. Okay, so for example, let's say that you own a company, like a nice sized company. Let's say you own half of it and it's a $2 billion company, but you own stock in the company. Okay, if you own stock in a company, that doesn't mean that your stock is liquid. It doesn't mean that you can just take that money out of the bank and start spending. Means that maybe you pay yourself a salary, a nice set. Let's say you pay yourself a nice salary, like $5 million a year. Let's say you pay yourself $5 million a year. Okay, well, if you're being taxed on your billion dollars in assets, then 5% of 1 billion, that would be $50 million. Just to do some quick math over here. So you might be taking a $5 million salary, which is a really, really nice salary, obviously, but you own a billion dollars in stock. Well, you're going to be paying $50 million in tax, which means you have to sell stock, which means the price of the stock goes down, which means the company is unable to achieve more liquidity, which means maybe people get fired, which then hits all of your workers. While billionaires are doing what you would expect, they're leaving. France tried this, by the way. France had a wealth tax for a little while and they had to repeal it because it was so bad all the rich people in France were leaving. The California Tax foundation visiting fellow Jared Walzack estimates in a new paper, reported departures already total 777 billion. And there are more quiet departures that do not draw up media coverage because there are solid legal reasons to believe the initiatives residency date and approach could be challenged successfully in court. By his estimate, the wealth tax Exodus could total $1.23 trillion, reduce annual state revenue by 3.53 billion to $4.49 billion, mainly from lower income tax collections, because again, it turns out that, you know, who pays people's salaries are the rich people. It takes money to pay people's salaries. The businesses they run pay the salaries. There's another report in the New York Post suggesting that this wealth tax could cost 100,000 jobs and $28 billion in wages. So congrats to California again, this is the way that Democrats play the economic game. They, they leech off of the people who actually generate innovation and outsized earnings. They tax those people and then when those people leave, they blame them and suggest that they are somehow morally deficient in some way. We'll see how it works out for California. Genius level stuff in my old home state already. Meanwhile, on the foreign front, this morning, President Trump put out a truth saying Iran has just informed us they are in a state of collapse. They want us to open the Hormuz strait as soon as possible as they try to figure out their leadership situation, which I believe they will be able to do. Well, the answer there should be, obviously, we're not opening up a damn thing until you collapse or give up what we want. The reality is their economy is in serious trouble. The way you can tell by the way that Their economy is in serious trouble, is they're executing everybody they possibly can. They are deeply afraid that there is going to be a rebellion from inside Iran. Some smuggled footage smuggled out to the New York Post from an infamous Iranian prison has now captured six dissidents breaking into song to defy the Islamic regime one last time before being hanged. Pretty tragic stuff. Here's what that sounds like. Apparently these guys are now dead. They've been hanged by the Iranian regime. Well, there's a reason that is because the Iranian regime is freaking out. Freaking out. According to Iran International, Iran's Supreme National Security Council has held a meeting to address growing concerns among security agencies over a possible resurgence of protests. Sources familiar with the discussions told Iran International. According to information presented at the meeting, officials believe mounting economic hardship driven by rising prices, unemployment, and damage to key industries such as petrochemicals and steel could become the main trigger for renewed protests. Estimates shared during that meeting suggested Iran's economy may not be able to withstand more than six to eight weeks of a naval blockade. That blockade began April 13th. Around two weeks have now passed. Another major concern is the near total shutdown of production centers in key sectors, including oil, petrochemicals and steel. Apparently, rebuilding those industries could take years. Security officials also say Internet shutdowns have left around 20% of the workforce dependent on online activity, unemployed. The reason they've shut down the Internet is they are deeply afraid that people are going to start coordinating about getting out in the streets again. And apparently these security officials are warning that based on the economic forecast, an additional 2 million people could lose their jobs in the private sector by the end of spring. Also, the closure of markets has halted all economic activity. And so that means that basically the rial is worthless at this point. The New York Times has a piece about the cooking oil trade quote. As the prices of basic goods have spiraled in Iran, they can sell olives, sunflower and corn oils for a modest profit to Iranians at the border, who will either sell the oil inside their country or use it themselves. Dozens of people were seen carrying multiple 4 and 5 liter bottles of oil as they walked from Turkey into Iran over the course of a single morning and afternoon. So people are literally trying to walk cooking oil across the border. The government gave Iranians a direct monthly cash payment last month amounting to 10 million Iranian Riyals, which sounds like a lot of money. You know how much 10 million Iranian rials is? Seven American dollars. Seven. Meanwhile, according to Bloomberg, Iran is rapidly running out of places to store Their crude oil. That is because of the blockade that we have put on Iranian ships. The Islamic Republic has enough unused storage capacity to last another 12 to 22 days. At that point they have to stop pumping. So right now they're keeping up the pumping, but because they can't get it out, they're filling up legitimately like old storage facilities that are incapable of even holding the oil. Iran has already curtailed as much as 2.5 million barrels of daily crude production, according to Goldman Sachs. Scott Besant, the Treasury Secretary, says while the surviving IRGC leaders are trapped like drowning rats in a sewage pipe, Iran's creaking oil industry is starting to shut in production. Thanks to the US blockade, pumping will soon collapse. Gasoline shortages in Iran next. So again, they don't have the capacity to refine the way they did. They do not have the capacity to export literally at all. Miyad Maliki over at the foundation for Defense of Democracy says this confirms about a 13 day onshore storage estimate. Iran is now using containers and junk storage. Those would be disused tanks in poor condition and in Ahvaz and Asulaya to avoid cutting production. And now they're trying to use rail. But rail is not going to work because Iran's own senior rail transport experts are saying there are only two rail corridors to China. They have never been used for petroleum. They have very limited capacity and zero bulk crude infrastructure. And the floating storage fix, like just putting them on ships and letting them float there, that's equally thin. They're pulling retired shipping containers and retired ships literally out of retirement in order to try to float this oil. They have about 48 hours worth of worth of containment storage there. Bottom line, apparently, according to Maliki, containers, junk tanks, retired VLCCs and rail fantasies are not a storage strategy. They're the last moves of a system running out of room. Exactly on the timeline that that was estimated. This would be why the Islamic regime is getting more and more desperate. The Islamic regime is putting out propaganda showing women and children with guns. That, by the way, is not a sign of strength. That is not a sign of strength. When you have to show your women and your kids with guns, that means you are down to the very end. This is like the last days in Berlin in the Nazi regime. Here is some of the propaganda. It's literally women in burkas and small children behind machine guns. This is not a sign of strength. Like if this video looks to you like strength, I don't know what to tell you. This does not look like strength. This looks like it's pathetic. It's pathetic. They got a real problem on their hands when they're relegated to using human shields like women and children and just stuffing guns into the hands of nine year olds. Pretty amazing stuff from Iran. I mean, again, that's their propaganda. That is not our propaganda about them. That is them putting out their own propaganda. And the best they can do is, here is a child with an M4, my goodness, here is a baby with a Kalashnikov. The world's best. You know, they're probably just like us. Probably they're just like us. Well, meanwhile, Pizzashkian, who is the President of Iran, he says that the blockade and sanctions are undermining trust. He says that any diplomacy requires a shared understanding and the right conditions for meaningful dialogue. And he says that basically we need to let up the blockade in order to get negotiation. That's not happening. And if it does, that would be very stupid. We should not do that. That would be foolish. Why would you let up the pressure when it clearly is working? It is the reason they are desperate. This is why. You remember that just last week the Iranians didn't send people to Pakistan because they thought they had the upper hand. Well, now they're unilaterally sending people to Pakistan, basically attempting to draw the United States into negotiations. According to the Wall Street Journal, Iranian Foreign Minister Abbas Arahi is set to return to Islamabad on Sunday for further discussions with with Pakistani officials, even though US Envoys won't be there after President Trump canceled their trip. Meanwhile, Marco Rubio, the Secretary of State, explained yesterday on Fox News with Frey Yingst that Iran's open straits. You know, they say that they have open straits things. He says that's not true. That's not true.