PodcastsGeldanlageComplex Systems with Patrick McKenzie (patio11)

Complex Systems with Patrick McKenzie (patio11)

Patrick McKenzie
Complex Systems with Patrick McKenzie (patio11)
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  • Complex Systems with Patrick McKenzie (patio11)

    Defendant, Censor, Politico, Spy

    08.05.2026 | 1 Std. 5 Min.
    The improbable but true story of how non-profits operating a private intelligence agency to combat terrorism decided to interfere with campaign infrastructure in a U.S. election.

    This piece includes original public interest reporting, following on the previous episode on how the Southern Poverty Law Center became financial infrastructure. If you have previously read Bits about Money's reporting on this subject, note there are two major additions here: 1) direct evidence of interference in campaign infrastructure for a declared candidate in a U.S. election, which was newly developed after our original reporting and 2) responses (and lack thereof) from the non-profits at issue.

    Full transcript available here: www.complexsystemspodcast.com/defendant-censor-politico-spy/

    Presenting Sponsors: Mercury, Granola & Meter
    Complex Systems is presented by Mercury—radically better banking for founders. Mercury offers the best wire experience anywhere: fast, reliable, and free for domestic U.S. wires, so you can stay focused on growing your business. Apply online in minutes at mercury.com.

    If meetings consistently leave you with hazy action items and lost context, Granola handles the transcription so you can actually participate and gives you searchable notes afterward. Try it free at granola.ai/complexsystems with code COMPLEXSYSTEMS

    Networking infrastructure has a way of accumulating technical debt faster than almost anything else in IT. Meter handles the full stack (wired, wireless, and cellular) as a single integrated solution: designed, deployed, and managed end-to-end so there's only one vendor to call when something goes wrong. Visit meter.com/complexsystems to book a demo.


    Links:
    Notes on a non-profit indicted for bank fraud (Bits about Money): https://www.bitsaboutmoney.com/archive/nonprofit-indicted-bank-fraud/ 

    Timestamps:
    (00:00) Intro
    (02:50) The coordinated pressure campaign, as experienced by industry
    (08:13) The coordinated pressure campaign, as narrated by its authors
    (08:36) Mid-2017: Color of Change dialogue with PayPal begins
    (09:27) August 11, 2017: Charlottesville Unite the Right Rally
    (10:58) August 21, 2017: JPMorgan Chase Foundation donates $500k to the SPLC
    (11:44) 2018: SPLC organizes Change the Terms, which becomes the coalition's nucleus
    (19:07) March 2021: Color of Change describes the meetings on a podcast
    (21:42) A brief interlude about causality and communications strategy
    (22:58) The coalition targets politicians in nonpartisan fashion
    (28:20) Early 2020: The SPLC describes this campaign to Congress
    (31:26) June 2020: Widespread protests throughout America; National Guard, Facebook deployed
    (35:33) July 29, 2020: Antitrust Committee hearing about market power
    (38:05) January 6, 2021: A riot at the Capitol
    (42:51) February 25, 2021: The SPLC lobbies Congress to require companies to inform on nonprofits and others to government
    (44:49) June 4, 2021: Facebook rescinds newsworthiness exception to multiple policies
    (45:22) July 2021: The Change the Terms coalition attempts nonpartisan interdiction of Trump PAC fundraising
    (48:16) Later in 2021: Coalition members fundraise in reliance upon this conduct
    (50:52) 2022 to present: The Change the Terms coalition evolves posture
    (52:10) January 2023: Change the Terms intervenes in its own name against a declared candidate for the presidency
    (53:53) A brief parable about maintaining tax-exempt status 
    (55:30) We have invited coalition participants to comment
    (57:50) We received a statement from the Center for American Progress
    (01:02:43) No other member of the coalition offered any comment
    (01:03:13) The moral authority of charities is a commons
  • Complex Systems with Patrick McKenzie (patio11)

    How the SPLC became financial infrastructure

    01.05.2026 | 51 Min.
    Patrick McKenzie reads from his latest Bits About Money essay, walking through why bank fraud charges are a prosecutor's favorite tool, how the Bank Secrecy Act's surveillance regime is designed to force criminals into impossible tradeoffs, and why lying to a bank is one of the easiest crimes to prove. He then applies that framework to the April 2026 DOJ indictment of the Southern Poverty Law Center, tracing how a covert informant-payment scheme run through fictitious shell entities to become a near-textbook bank fraud case. Part 2 releases next week.

    Full transcript available here: www.complexsystemspodcast.com/splc-financial-infrastructure/

    Presenting Sponsors: Mercury, Granola, & Meter

    Complex Systems is presented by Mercury—radically better banking for founders. Mercury offers the best wire experience anywhere: fast, reliable, and free for domestic U.S. wires, so you can stay focused on growing your business. Apply online in minutes at mercury.com.

    If meetings consistently leave you with hazy action items and lost context, Granola handles the transcription so you can actually participate and gives you searchable notes afterward. Try it free at granola.ai/complexsystems with code COMPLEXSYSTEMS

    Networking infrastructure has a way of accumulating technical debt faster than almost anything else in IT. Meter handles the full stack (wired, wireless, and cellular) as a single integrated solution: designed, deployed, and managed end-to-end so there's only one vendor to call when something goes wrong. Visit meter.com/complexsystems to book a demo.


    Links:
    Bits About Money, Notes on a non-profit indicted for bank fraud https://www.bitsaboutmoney.com/archive/nonprofit-indicted-bank-fraud/

    Timestamps:
    (00:00) Intro
    (02:43) The strategic logic of bank fraud charges in white collar indictments
    (05:47) Some worked examples of this in white-collar prosecutions
    (10:49) Criminal law textbooks published on the Internet
    (12:22) FFIEC BSA/AML Examination Manual
    (19:07) A textbook prosecution of bank fraud in many respects
    (27:48) This written communication is a succinct confession to bank fraud.
    (32:27) Data products and mechanistic decisioning
  • Complex Systems with Patrick McKenzie (patio11)

    The honey badger of payments

    23.04.2026 | 29 Min.
    Patrick McKenzie (patio11) reads his classic Bits about Money essay on how checks shaped the entire American payments infrastructure, from the origins of ACH to why a standard US bank account is, technically, a credit product. He then examines what happened when DOGE tried, via Executive Order 14247, to eliminate federal paper check disbursements by September 2025. The carve-outs Treasury eventually had to make map almost exactly onto the essay's original argument. Checks are the honey badger of payments: the numbers keep dwindling, but the edge cases are irreducible, and the second-best pathway for reaching them doesn't really exist yet.

    Full transcript available here: www.complexsystemspodcast.com/checks/

    Presenting Sponsors: Mercury & Granola

    Complex Systems is presented by Mercury—radically better banking for founders. Mercury offers the best wire experience anywhere: fast, reliable, and free for domestic U.S. wires, so you can stay focused on growing your business. Apply online in minutes at mercury.com.

    If meetings consistently leave you with hazy action items and lost context, Granola handles the transcription so you can actually participate and gives you searchable notes afterward. Try it free at granola.ai/complexsystems with code COMPLEXSYSTEMS

    Links:
    The Long Shadow of Checks: https://www.bitsaboutmoney.com/archive/the-long-shadow-of-checks/ 

    Timestamps:
    (00:00) Intro
    (01:12) A brief digression for people who use functioning payment forms
    (02:45) Check settlement in the pre-computer era
    (07:28) Some funny consequences of checks underpinning everything
    (13:20) Money in transit
    (14:42) Sponsors: Mercury | Granola
    (17:56) Money in transit (part 2)
    (21:12) Deposit accounts and their discontents
    (23:25) The DOGE postscript
    (29:03) Honey Badger Jingle
  • Complex Systems with Patrick McKenzie (patio11)

    Cash received is not revenue earned

    16.04.2026 | 33 Min.
    Patrick McKenzie (patio11) reads his classic Bits about Money essay explaining why revenue recognition in software is more complicated than most engineers, founders, and financial reporters think. The essay covers the accounting rules behind SaaS subscriptions, the deferred revenue problem that surprised him when he sold his own companies, and the surprisingly intricate standards governing virtual goods in mobile games. He then turns to AI labs, where rapid revenue growth has prompted questions about whether the numbers mean what they seem. They mostly do, but understanding why requires knowing the difference between bookings, deferred revenue, and a minimum commit.

    Full transcript available here: www.complexsystemspodcast.com/cash-received-is-not-revenue-earned/

    Presenting Sponsors: Mercury & Granola

    Complex Systems is presented by Mercury—radically better banking for founders. Mercury offers the best wire experience anywhere: fast, reliable, and free for domestic U.S. wires, so you can stay focused on growing your business. Apply online in minutes at mercury.com.

    If meetings consistently leave you with hazy action items and lost context, Granola handles the transcription so you can actually participate and gives you searchable notes afterward. Try it free at granola.ai/complexsystems with code COMPLEXSYSTEMS

    Links:
    Accounting for SaaS and swords: https://www.bitsaboutmoney.com/archive/accounting-for-saas-and-swords/ 

    Timestamps:
    (00:00) Intro
    (00:56) Accounting for SaaS and swords
    (03:22) Why revenue recognition matters
    (05:49) Revenue recognition in SaaS
    (09:54) Revenue recognition in virtual goods
    (12:52) Accounting for potions
    (13:24) Accounting for swords
    (14:56) Sponsors: Mercury | Granola
    (18:34) Accounting for swords (cont’d)
    (20:49) Game mechanics as accounting optimizations
    (22:10) So about that goblin
    (23:25) Back to the real world
    (25:00) How this applies to AI labs
    (32:48) Wrap
  • Complex Systems with Patrick McKenzie (patio11)

    Your bank balance isn’t in the bank, and other alchemy

    09.04.2026 | 48 Min.
    Patrick McKenzie (patio11) reads his classic Bits About Money essay on why your bank deposit is not what you think it is. He explains the capital stack that makes deposits appear riskless while funding genuinely risky businesses, and why the "no questions asked" property of money took the United States roughly a hundred years to engineer.

    Patrick updates the essay with commentary on SVB's collapse, the Voyager collapse and emergency injunctions about the finer points of ACH plumbing, and the GENIUS Act's stablecoin interest ban. He argues that crypto keeps rediscovering the same hard truth: things that behave like deposits without being deposits eventually break. When they break, they will break other structures they have wormed into, and they will tend to have wormed into a lot, because deposits are extremely useful and are perceived to never break.

    Full transcript available here: www.complexsystemspodcast.com/your-bank-balance-isnt-in-the-bank/

    Presenting Sponsors: Mercury, Meter, & Granola
    Complex Systems is presented by Mercury—radically better banking for founders. Mercury offers the best wire experience anywhere: fast, reliable, and free for domestic U.S. wires, so you can stay focused on growing your business. Apply online in minutes at mercury.com.
    Networking infrastructure has a way of accumulating technical debt faster than almost anything else in IT. Meter handles the full stack (wired, wireless, and cellular) as a single integrated solution: designed, deployed, and managed end-to-end so there's only one vendor to call when something goes wrong. Visit meter.com/complexsystems to book a demo. 
    If meetings consistently leave you with hazy action items and lost context, Granola handles the transcription so you can actually participate and gives you searchable notes afterward. Try it free at granola.ai/complexsystems with code COMPLEXSYSTEMS

    Links:
    The alchemy of deposits: https://www.bitsaboutmoney.com/archive/the-alchemy-of-deposits/ 
    Deposit Insurance: https://www.bitsaboutmoney.com/archive/deposit-insurance/ 
    Gift Cards: https://www.bitsaboutmoney.com/archive/gift-card-accountability-sink/ 
    Debanking (and Debunking?) https://www.bitsaboutmoney.com/archive/debanking-and-debunking/ 

    Timestamps:
    (00:00) Intro
    (00:20) Why revisit this essay now
    (02:03) Deposits are money
    (06:53) Heavily engineered structured products pretending to be simple
    (09:11) Credit card charge-offs as an underappreciated welfare program
    (10:16) Deposits as pink slime
    (13:08) Silicon Valley Bank and information sensitivity in the real world
    (19:06) Many things are quasi-deposits
    (20:00) Sponsors: Mercury | Meter
    (23:13) Many things are quasi-deposits (cont’d)
    (25:10) Voyager bankruptcy
    (32:29) How the FDIC resolves bank failures over weekends
    (34:49) Making the magic happen
    (35:13) The GENIUS Act and the stablecoin interest debate
    (40:31) Sponsor: Granola
    (47:45) Wrap

Weitere Geldanlage Podcasts

Über Complex Systems with Patrick McKenzie (patio11)

We live in a world where our civilization and daily lives depend upon institutions, infrastructure, and technological substrates that are _complicated_ but not _unknowable_. Join Patrick McKenzie (patio11) as he discusses how decisions, technology, culture, and incentives shape our finance, technology, government, and more, with the people who built (and build) those Complex Systems.
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