Timcast IRL · May 11, 2021 · 2h 0m
Timcast IRL #283 - State of Emergency After MASSIVE Oil Pipeline Hack, Gas Shortage Feared w/Max & Stacy
Episode Recap
Timcast IRL episode 283, recorded on May 11, 2021, centered on the breaking news of the Colonial Pipeline ransomware attack that prompted emergency declarations across 17 states and Washington D.C. Tim Pool opened the show by discussing how the largest oil pipeline in the United States had been temporarily shut down following a cyberattack, raising concerns about potential gas shortages and price spikes at a time when inflation was already a growing worry. The episode featured cryptocurrency advocates Max Kaiser and Stacey Herbert, who joined Tim and co-host Ian Crossland to analyze the broader economic implications of the attack and its connection to broader fiscal policies.
The conversation delved into the Federal Reserve's monetary policies and the history of government intervention in financial markets. Ian Crossland, drawing on his Wall Street experience, explained how the 1987 market crash marked the beginning of federal government involvement in markets, leading to the creation of what became known as the Plunge Protection Team. This set the stage for subsequent Fed chairs to adopt policies like the Greenspan Put, Bernanke Put, and Yellen Put, where the federal government would purchase stocks during market downturns to stabilize the economy.
The panel discussed how these interventions created moral hazard, where large financial institutions and hedge funds could take risks knowing they would be bailed out. Max Kaiser and Stacey Herbert, known for their early cryptocurrency advocacy, brought their expertise to bear on discussions about inflation fears and the potential for alternative financial systems. The episode touched on concerns about the massive amounts of money printing, rising unemployment benefits potentially discouraging work, and a surprisingly weak jobs report that missed expectations by the widest margin since 1993.
Tim encouraged viewers to support the show through membership programs while discussing the gravity of the pipeline attack on critical national infrastructure. The hackers reportedly even apologized for the disruption, adding an unusual twist to the ransomware incident that was affecting fuel supplies across the eastern United States.
TL;DR
- →Colonial Pipeline suffered a ransomware attack, forcing the shutdown of a 5,500-mile pipeline carrying 45% of fuel supplies to the eastern U.S., prompting emergency declarations in 17 states and D.C.
- →The Federal Motor Carrier Safety Administration issued a regional emergency declaration to keep fuel supply lines open as gas shortages and price increases became imminent concerns.
- →Panel discussion covered the history of federal market intervention, tracing from the 1987 crash and creation of the Plunge Protection Team through successive Fed chair policies designed to prop up markets during downturns.
- →Economists and hosts discussed concerns about inflation, massive government spending, and how unemployment benefits of $16/hour may be discouraging workers from accepting jobs.
- →The jobs report for that period was described as the biggest miss since 1993, raising questions about economic recovery trajectories despite optimistic forecasts.
- →Max Kaiser and Stacey Herbert discussed their early Bitcoin advocacy, claiming responsibility for helping create numerous millionaires and even billionaires who invested in cryptocurrency based on their recommendations.
Key Moments
- 0:00Opening and Pipeline Attack CoverageTim Pool opens the show discussing the breaking news of the Colonial Pipeline ransomware attack and the state of emergency declarations across 17 states and D.C.
- 12:00Introduction of Max and StaceyTim introduces cryptocurrency advocates Max Kaiser and Stacey Herbert, discussing their early Bitcoin predictions and their global influence on financial markets.
- 20:00Federal Reserve Policy DiscussionIan Crossland explains the history of government market intervention, from the 1987 crash through the Greenspan, Bernanke, and Yellen Put policies.
- 35:00Economic Concerns and InflationPanel discusses inflation fears, the weak jobs report, and concerns about the economic recovery amid massive government spending.
- 55:00Critical Infrastructure VulnerabilityDeep dive into the implications of the cyberattack on critical infrastructure and the broader systemic vulnerabilities it exposed.
Notable Quotes
“The largest oil pipeline has been temporarily shut down. A state of emergency was declared in 17 different states in Washington, D.C., and there are fears that this could end up causing gas shortages and maybe even a spike in gas prices, which are already up as it is.”
— Tim Pool · opening segment introducing the main story
“The beginning and the end of free market capitalism in America was really then in 1987. So subsequently, throughout the decades since then, the government's become more intrusive into the workings of the markets.”
— Ian Crossland · explaining the history of federal market intervention
“We've made many billionaires all over the world. A hundred millionaires. You know, our show goes out globally, 50 countries, millions of folks. We estimate we've created a half a million millionaires around the world.”
— Max Kaiser · discussing the impact of their cryptocurrency advocacy
“There's fear that the economy isn't going to be recovering like many people think. This past jobs report was actually surprisingly bad. I guess they said it was the biggest miss since 1993.”
— Tim Pool · discussing economic concerns
“They're borrowing money at zero. They're speculating without any restrictions or laws being enforced against them whatsoever. And whenever they make a mistake, they get bailed out. So it's heads they win, tails we lose.”
— Ian Crossland · describing moral hazard in financial markets