#1145 - Peter Schiff

Jul 17, 2018

Peter Schiff is an American businessman, investment broker, author and financial commentator. Schiff is CEO and chief global strategist of Euro Pacific Capital Inc. He also hosts his own podcast called “The Peter Schiff Podcast” available on iTunes and at SchiffRadio.com

Play Episode

hey folks house things I got a bunch of dates coming up Joe Rogan. Com is where you can find all of them but I want one of things we did recently we eat we opened up Kansas City August 10th more tickets are available in Kansas City we also have the 24th of August Vancouver some tickets are available for that but it's going fast baby Calgary's basically all sold out on the 25th and then the 13th in Philly almost all sold out and the 14th we opened up more tickets to for the Schottenstein Steam and I keep fucking it up Schottenstein Center in Columbus Ohio on September 14th it does not look like we're going to make it to Cleveland does liquor is going to happen the store sorry but if you're in Columbus shit that's like it's an hour away if you lazy how far is that an hour 2 hours Jamie says 2 hours he's an Ohio boy I trust him

Joe Rogan. Com for all that jazz this episode of the podcast is brought to you by Lenovo makers of the think that. I've talked about this on the podcast long before the Nova was a sponsor they became a sponsor at the heard me talking about it and it wasn't by design it wasn't like I know what I'll do I'll I'll talk awesome stuff about their laptop and don't know I fucking love this laptop I have a ThinkPad X1 Carbon it's a 6 generation ThinkPad and it is the shit it gets 15 hours of battery life it's only two and a half pounds and you can get it with an optional touchscreen I have one with her it's kind of fingerprint sensor the keyboard is the best keyboard on any laptop. It is phenomenal it has nice travels got a good feel to it I love this thing I write all my stand up on it anytime writing things I used this laptop and I'm very very happy with it is my favorite all-time laptop ever

and that's just my own personal endorsement but you can get great savings from Lenovo in July they have a Black Friday in July sale deals are good for one week only July 16th through July 23rd

get on it daily doorbusters all week long with hourly deals on the 20th and the 23rd for Black Friday and Cyber Monday in July go to lenovo.com Ford deals devices on sale including this laptop that I have right here the ThinkPad X1 Carbon the sixth generation 1 you can get that 25% off you can get the Lenovo IdeaPad 720's 26% off again just over 2 lb of the latest Intel processor plenty of ports 10 hours of battery life or how about this one the third generation ThinkPad X1 yoga at 25% off that is a very versatile device device very versatile device is a tablet you can use it as a tent it'll sit up you know I'm saying like it's got a 360 degree hinge and you also use it in laptop mode it's a fantastic device with a touch screen and an active pen it's a device design

the flexibility to adapt to your lifestyle additional devices on sale for up to 41% off with savings up to $739 off lenovo.com Ford deals I will also brought to you by Teeter folks I've been telling you for years that there's another thing that I bought way before it became an ad I have a teeter inversion table out here in the gym I love these things hanging upside down is a great way to decompress your back in to alleviate back pain it's called inversion therapy uses gravity and your own body weight to decompress the spine and relieve pressure on your discs and surrounding nerves I am a big believer in spinal decompression if you've ever heard my trials and tribulations about back pain one of things it's really helped me from all my years of Jiu Jitsu and all the nagging back injuries is inverting on a teeter

helps relieve back pain and makes me feel looser it gives you more flexibility in your spine and it helps my workout recovery particular you know it's I think for someone who does Jiu-Jitsu or anything to put a lot of pressure on your back I think it's a must I really do if you have back pain and shit if you've been lucky enough to avoid back pain you need one of these things to Inver everyday to keep your back and Joint feeling healthy over 3 million people put their trust in Teeter and I've been using them for years they're the only inversion table brand that's been both safety certified by U L Laboratories and FDA cleared as a Class 1 medical device indicated for back pain and related conditions and they're giving us an amazing offer just for listeners this podcast for limited time you can get the Teeter inversion table with bonus accessories in a free pair of gravity boots you can invert at home or take the boots with you to the gym and to get this.

which is a savings of over $148 you got to go to Teeter Teeter teeter.com Rogan you also get free shipping a 60-day money-back guarantee and free returns so there's absolutely no risk for you to try it out so remember you can get this deal the Teeter with the bonus accessories and a free pair of gravity boots by going to teeter.com Rogan that's Teeter. Com Rogan check it out but not least we are brought to you by the cash out most with your money you can pay people back you can buy and sell Bitcoin you can deposit your paycheck right into the app or you can order a free custom Cash Card spend anywhere you like and now the cash card is

powerful than ever with the cash apps latest feature cash boost the cash cards boost program lets you get instant discount every time you swipe your card like right now you can get a dollar off every purchase you make a coffee shops across the country when you pay with your cash card and it does not stop there you can get 15% off Chipotle 15% off Shake Shack and more and they're always rolling out new boots for the cash card so you can follow cash app c a s h a p p on Instagram and Twitter to find out what boosts are next to get boosted download the cash app get your free cash card and select your Boost and don't forget when you download the cash app and enter the reward code Joe Rogan you'll receive $5 and the cash app will send $5 to our good friend Justin Brands fight for the Forgotten charity building Wells to provide clean water to people in the Congo and through this program we are very pleased to announce the way of raised out

names of dollars in built several Wells for the pygmies instant just awesome and very rewarding thing that's it I guess today you can get it you can download for free for Android and for iPhone go to the Google Play store or the App Store download for free and again use that reward code Joe Rogan my gas today is the one and only mr. Peter Schiff Peter Chef eyes been on the podcast many times before he is a financial genius he predicted the big crash in 2008 and he is predicting another one and he believes if it doesn't know he talked about on the podcast but he says it doesn't happen during Trump's first Administration or first run if he makes it to a second term it's going to happen then spooky stuff but I think it's worth listening to and just I always enjoy talking to him so please give it up for the one and only mr. Peter Schiff

The Joe Rogan Experience

future 3 hours 2 hours once all right it is it says basically talking to a friend okay well my friend you are friend that's right I remember when I first saw you when you were doing that is Occupy Wall Street anymore so they give up Define yeah they did but you know we just maybe you shouldn't have saw it on my YouTube channel I know we just reposted the Occupy Wall Street video I never actually had it on my channel but because it was about 5 years ago or so years ago and so I let them that they went with it it was asking 1% right was not what we called it well I went down there with a sign that says let's talk and I went into zuccotti Park

you know I only reason I stopped at if you the long the long one the long version just under 2 hours which is on my YouTube channel now but the only reason we stopped is because we ran out of batteries or the knowledge to compete with what you were saying was very entertaining like it was just hilarious watching someone so completely out match or group of people so completely outmatched trying to debate economics with you and try to understand what business works so much to try to convince the people there that they were wrong in that capitalism was the solution not the source of their problems and that they should be protesting Washington to Federal Reserve or congress it was for the people

I knew that would watch it on the internet and I still get emails even now at least I don't think a week goes by where somebody from somewhere in the world doesn't send me an email about that and I know another website I forget the name of it reposted it about a year ago and they got a couple million views on it just posting it again so a lot of people watched it and people saying this is what changed me I was socialist very left-wing I watch this and that was the Epiphany that was the moment that I did more research and I learn more and now thanks to you I'm a total libertarian or free-market capitalist and it's it served its purpose yeah well it was enlightening it's it was it was good it's good to see people that are so involved in something that they'll go protest on hang on the park but they really can articulate their feelings or thoughts in a well-reasoned debate they really don't have the fact but yeah other dedicating their entire life to protesting something

interesting that people will spend so much energy and effort on something the really not even educated talk about something just emotionally instead of taking the time to learn about economics and understand you know the source of the problem because anybody can just blame it on some rich person who is hoarding money and discrimination in the middle of doing that and then just say all the problems on some rich person which is another word for steal take money from somebody who earned it and give it to somebody who did it but if you actually take a little bit of time and use your head instead of your your your your your heart your feelings you'll learn that. That is the source of the problems is government interference in the economy and that the protest should be directed at government at their regulation

send their subsidies in their taxes and all the things have government does to stifle economic growth and deny opportunities funny documentary if you could do like a documentary on the last occupier like the last person to Occupy Wall Street cuz I had to be like stragglers right eventually must have gotten to the point where there's like 30 people that have 20 people after one guy no fuck these people they were occupied here and setting up camps right they're essentially living there but now they were volunteering for the Sanders campaign and socialism is really kind of going mainstream

the Democratic Socialist I want to vote for socialism as opposed to just have you know an armed Revolution but the end is still the same right is still socialism and it's it doesn't work yeah I was watching Interview with Tucker Carlson and some guys professor at Harvard and I said I'll give you the last word two guys had socialism's going to win it made the P sound like what is that what does that even mean like socialism is going to win what is it what does that mean what is socialism the problem is very intoxicating tonight Beach City about socialism is that no matter how many times it fails people expected to succeed right that's the definition of of insanity right do something over and over again and expecting a different result well the Socialist always expect a different result from doing something that is never succeeded in the past so socialism by definition is one thing but by the emotional reaction that people have is kind of another thing the emotional

is rich people that are real problem there hoarding they're greedy I'm not concerned with money I want I'm I'm concerned with people and community and feelings and Health and Welfare in education and all that money we should take it from those rich people and we should funnel it into education and community and they say all these words that make you feel good like yeah we're not about money either yeah it's all it's all about feeling good that's better than everybody else care about money they just care about other people and you but when you talk about rich people they don't hoard money I mean the way you get rich is not by forwarding the way you get rich is by trying to figure out what problem people have that you can saw right whether it's inventing something that makes their lives better or providing a service that makes their lives better because the customers are in charge individuals

allocate well if it's if it's somebody is better than somebody else at satisfying the desires that people have right now if I can come up with something that you like that you want to buy that's cheaper and better than what somebody else has come up with in you're going to buy for me and so the person who ends up with the most money is the person who satisfied the most desires the most needs in the most efficient way possible and and that's what's benefiting society mean it's great to have charity and I'm all for private charity but if you look at the wealthiest men in history even though they've been incredible flat surface and they've given away a lot of money they help a lot more people amassing their fortunes than give them away what they made it was the businesses that York they created the the the products that they invented the services that they provided in the employment right that was all a function of their creating their wealth that's what did a lot more to help Society than simply giving away

some of the money that they aren't have you ever had a debate with Democratic Socialist or they don't want to admit it because you know you'll have the left always consider some believe it Donald Trump was always a fascist don't even realize it fascism is part of socialism socialism is a broad concept that includes things like communism and fascism so if you're communist you are socialist but by but it doesn't mean that if you're a socialist or communist because you could be as fast as you can be for a lot of things but fascism is a form of Socialism where the government doesn't just steal all the property like the Communists want to nationalize everything and take legal ownership of the means of production right thing, just owns all the capitol under under fascism the government is a little bit smarter than they realize that people work harder if they think they're working for themselves so

she just doesn't want to nationalize businesses they just want to control it through regulation and taxes and that's pretty much what the Democrats want to do they want to control everything by taxing it heavily and regulating it and knows that's an important aspect of fascist me laugh Associates fascism with racism just because the Nazis were were racist but you don't have to be racist I mean fascism started in Italy that there wasn't any racism there and if you go back to the Nazi party it's the National Socialist Party of Germany that's what the Nazis are its socialist so fascism is a former so that's why the Communist in the fascists you know are you so much because they're really they're fighting over the same Turf is which brand of socialism is better fascism or communism but they're not at opposite ends of the political Spectrum are on the same and so do you think the people are frustrated with the current system until they see someone like Bernie Sanders come along that offers this radical change of pace he saying you know what we need to

and income inequality and redistribute wealth and all these different things and it just Sparks an emotional reaction of people that they know that the current system the way it's in place especially it was under Obama didn't like how things were they didn't like how things were under Bush they say we need some of those not a career politician or someone who's got a radical new approach all look at is Bernie Sanders guy wants to do some stuff with money let's let's vote for him yeah look people you know are grasping for straws when they're looking for a solution that's why Trump is President I mean a lot of people think that Trump's election maybe shows at the the US Electric has moved right right that we're more Republican or more free market but that's not what that election was about it was about the fact that we had a lousy economy and Trump was honest about that to the voters Trump told people that the numbers are phony don't believe he's unemployment numbers for 5% its allies fraud it's fiction and

is right because the way they calculated today they don't calculate the millions and millions of people I've given up looking for work right they don't count the people just have a part-time job and they're still looking for a full-time job so the real unemployment number is much much higher in and Trump talked about that in and he called out you know all the politicians from both sides right not just a Democrats to Republicans and he said look I'm going to clean house I'm not a politician vote for me right I'm going to make America great again I'm going to drain the swamp you know what he appeal to people's their fears about immigrants coming to build this wall as if the reason that things are bad is because we have too many immigrants taking away the jobs and show people decided you know what what the hell let me let me give this guy trance because things are bad the media is lying to me wall Street's lying to me and so will Trump trump one but unfortunately now Trump is part of the establishment and now all the sudden the fake economic numbers are legit now every time there's an unemployment

Rowdy tweets about how it's the lowest it's ever been so I think that when we get this next recession which is going to happen while Trump is president during during his first term which I think will be the only term but when you don't normally have an expansion that last as long as this one I think we're at where the second longest in history and if we go for another year it'll be the longest expansion in history 2008 exactly what is a usual expansion and compression more government stimulus than any other recovery and I don't think we actually recovered I think the government simply you know injected a bunch of cheap money into the economy

and exacerbated the real problem but in a reflated the bubbles in the stock market and and the housing market but you know everybody talks about how the economy is doing so great but it's really not much better than it was under Obama if it's any better at all we GDP growth for Trump's first year in office last year was 2.3% I mean. The great first quarter was 2% this quarter might be a better than 3 maybe maybe not but I think it's going to be the second quarter will probably be the best quarter of the year maybe we're probably going to go downhill but no last year was I think the the weakest year of job growth since 2011 so if people want to talk about how great everything is but it's more of a function of people are hoping things are going to turn around there's a lot of optimism now but things are going to get better but I think that the people who are so optimistic a lot of them are going to be disappointed because we're going to end up with is a weak economy the only thing that's really strengthening is inflation inflation is going to pick up to the cost of living is really going to be rising as the economy is falling into recession so we can

inflation I which is probably the worst possible economic scenario and I think that the the left and even the FED is going to be able to blame it on Trump because Trump is come in and claim credit for this great economy that he believes we have and use claim credit for the records in the stock market but he's basically put his name on a bubble and when it pops it was going to be hard for him to try to blame the next recession on Obama when he's already said hey this is my economy I created it and so people are going to be disappointed and they're going to vote I think for another person whose promises change and unfortunately that's going to come from the left so you think this is going to happen in the next 3 years what what do you think is going to cause of the crash commercial real estate is it credit what is it

free be in a pretty severe recession now had it not been for Trump winning had to Hillary one I think we would already be there but I think what makes you said that as a result of of trump and we did get the tax cuts and the tax cuts you know just like you know any kind of artificial drug you know you can inject yourself and in and get a little bit of a phony High because remember the tax cuts were paid for with debt we didn't shrink government right if you if you make government smaller that's great then you can cut taxes cuz now government doesn't need as much money and you can so you can relieve the taxpayer of the burden of paying for it and that's great but if you just cut taxes but you don't cut government spending and of course what the Trump Administration did was was leaving the increased government spending increase welfare spending we in increase Warfare spending and so spending is more but they reduce their tax revenue so the deficit or just exploding out of control

and those deficits are going to do more damage to the economy than the tax cuts were benefits except you get the benefit first maybe for the first year and then you start to deal with the pain after that and so I think that's going to set it in you know long before the end of Trump's term so you think that this is what is causing the economy to be in a really good at least two to look like they're really healthy stay right now well some of the numbers write some of the numbers look better but beneath the surface again it's not approving just like just like it wasn't improving under Obama that's what laid the foundation for Trump's victory was because Obama and everybody kept talking about how great the recovery was but the average voter knew that that was all a bunch of nonsense because he wasn't living in it in that reality so if you were the financial advisor to the president what would you tell him about what how would you he will have to do what would you do to try to keep the economy moving in the same direction is it possible to ward off

well, crash right we don't want to keep in the same direction it was going in before Trump came in I mean so what is it about faith and Trump is not doing that I mean about face was like for the people that are listening to the so don't understand like they they're saying okay you, you supposed to be doing well black unemployment's the lowest it's ever been on Unemployment is down all these jobs been created as part of the statistics so if you look at the labor force participation rate near record-low and certainly for men it's the most has been in the history of the Republic butt and look at you no workers the population so fewer and fewer people are actually working and more and more of the people who aren't working or not included in the unemployment statistics so if you backed all those people in right

able-bodied people who don't have jobs but should be working then the unemployment rate is much much higher so that doesn't really paint a good picture and then you look at the fact that so many Americans are unqualified right there's a lot of jobs out there that go on Phil because American workers aren't qualified to fill those positions because you know we we take a lot of our kids and we keep them in high school until they're 18 19 years old many of these kids should drop out of high school and learn a trade I mean a lot of people you know they don't have the aptitude for an academic there's no point in just being in high school. Times are glorified daycare centers but they should be out learning trades and of course we make it harder for employers to train people on the job with occupational Licensing Laws and minimum wage laws so we destroy allow the opportunities for younger kids to get skills and then the ones that we send the college they waste their time in a major in Liberal Arts so they spend four five six years in college

learning nothing of any real value in the market they accumulate a massive amount of debt in the process and so you know we have Labor Force that's highly educated in that they've got a bunch of degrees maybe they didn't learn anything but they got a piece of paper but then what they have is a lot of debt and so we don't have a lot of people qualified to do a lot of things that need to be done so what would you tell the person if you were if you said let Peter Schiff I don't know shit about the economy you obviously do help me out how it how do I stop this bubble but the question is how does it deflate and then what do you propose is the solution to the problem of trump already made was when he first got elected he should not have changed his perspective he shouldn't have said everything is great right now he's planning on running at his next campaign is keep America great right when Trump ran for office he said America was an economic Wasteland that it was a disaster he's been president for a little over a year all the sudden stew

just call me in the history of the country which is not even close to being true but if he is going to try to run for reelection on I've already made America great and now we just want to keep it great that's not going to resonate so what you should have done from day one is leveled with the American public again this is how bad the problem is and this is what it's going to take the song of it because there's a lot of you no pain short-term pain that we're going to need to go through in order to come to the other side in order to get rid of all these problems right now look at that rate right Trump is making a big deal about the trade deficits and he's watching Terrace is God this trade war that he's convinced that we could win and this is very misguided the trade deficits are not the problem they are the consequence of the problem the problem is that we have bad monetary policy bad fiscal policy too much regulation that's why we have a trade

the biggest American industry is not productive enough we don't save enough we don't make the right capital investment that's because interest rates have been kept to low know our tax code favor stats and we have a lot of regulations that make American businesses less competitive and so the result is that we import a lot of products rather than making them ourselves and it's not because the other countries aren't fair or because they have tariffs tariffs are very low around the world I mean there's tariffs or not the problem and so if Trump is simply going to erect Harrah's all that's going to do is tax the American public does the American public has to pay the terrorist whenever they buy imported products so this is not going to going to turn the economy around but me and Trump is right he points out that well you're one point in time America ran on Terrace which is true during the 19th century the government you know raise money problems primarily by tariffs

we don't have an income tax you know it's so this is the irony of it the reason we have an income tax today is because the populist politicians of the day told the American voter if we can tax the rich with income tax then we can get rid of Paris that the average person is paying so the average person understood that Paris cost them money and the politician said let's get rid of these tariffs and let's just tax the rich and the income tax that was originally proposed really was attacks on the very rich I mean even doctors and lawyers didn't pay it I mean you had to be super rich before you pay the taxes then it was like you know 1% to 4% so it was a small tax and it wasn't taken from your paycheck right of me first will get if you if you got a paycheck he didn't pay the tax but we didn't have withholding until 1943 that was part of the victory tax to pay for the second world war but Americans were told let's tax the rich and you won't have to pay Terror

well it's diminutive meaning of the government got the nose Under the Tent right all of a sudden now the income tax affects everybody right people pay a lot more income taxes today than they used to pay in Paris but now now the president wants to bring the tires back on top of the income tax I mean if Trump wants to repeal the income tax and get rid of it entirely and then have some Terrace I'd be okay with that but you can't do that unless you dramatically shrink the size of government which is the most important thing that truck needs to do but what he's not doing he has to make the military smaller not bigger I mean he's talking about a space for me we can't even afford the Air Force Navy Marines we got now for space for us but we have to cut everything we got to cut entitlements right he's think we should be the first people to have a space for us what are the Russian space force out of luck

find Space more novel anybody wants to fight I don't think anyone's going to mess with us the problem is Arcana me to drop when you say let the bubble crash like what would that entail apology fiscal policy is we don't save anything right because we don't save enough we don't invest enough we don't produce enough we don't make enough real things right I mean when Trump wants to say that foreigners are taking advantage of my running shoes trade surpluses he's got it backwards we're taking advantage of them they look like the Chinese are sending us all these products they worked hard to produce and they had to use real resources land labor Capital to make these products and they send him here and what do we give them to give him my OU's we give me a piece of paper I meant by are treasury bonds so in the short run Americans are just

turn everything on a credit card right we're living a higher standard of living because we can consume what we didn't make but when you do that you become poor to America used to be the richest creditor nation in the world right the world oh. That's a lot of money today where the world's biggest debtor Nation how do we go from being the biggest creditor to the biggest debtor it was trade deficits every year we keep borrowing money to consume and what's this about as it says trying to reach Days Inn in Laporte Nation but we just don't live like a poor Nation yet because we're still borrowing yeah and you could be a rich individual yet maintain a rich Lifestyle on. But eventually you know that's going to catch up with you and then your lifestyle is going to come crashing down and this is what's going to happen but what we should do instead of having a crisis imposed on us globally with a crisis in the dollar and a crisis and our bond market we should do it ourselves we should set these forces in motion ourselves what we have to do is shrink government

a lot of government spending get rid of a lot of government agencies and departments to get government out of the way so we can lower taxes legitimately and then we have to allow the Federal Reserve to let the Marcus said interest rates interest rates have to be much higher than they are now right that's cuz that's getting courage people to save if interest rates are high you'll put your money in the bank to earn that high rate of interest when money goes into a bank he can get loaned out to businesses right now all that money is going to government or it's in the form of a bond market where it's not growing economy or money is being used to finance stock BuyBacks we need money on Main Street financing Capital formation entrepreneurship you know new businesses new job so we get higher interest rates will get that and we need people to stop buying things they can't afford and if you buy something if you have the money to pay for it you don't just put it on a credit card but if in a credit card interest rates went up and if credit was contracted so that credit card companies were not giving out as much credit they're giving out a lot of credit now but

the government is Miss directing it but if we slow down our consumption we increase our savings and investment then the economy can actually grow but if interest rates go up asset prices have to come down the stock market has to come down a lot real estate prices have to come down a lot. That means people are going to lose money they're not going to be happy about that yeah that sounds counterintuitive to everything that I've always heard about how to boost up the economy the idea would be that spending and people buying things is great for the economy would you know that before the horse you can't buy something that doesn't exist something has to be produced before it can be consumed so it's the production the drives economic trade not consumption see right now we're just consuming what the Chinese produce the consumption doesn't mean anything unless you produce something first so you drive an economy by creating Supply its Supply that creates the man if you just try to create demand without the supply it's just inflation and so weird to that we keep hearing things about Chinese telephone

vacations companies like Huawei in particular there was telling you to not buy their stuff it wasn't it was something about or something in the paper today about Huawei it was about I think another country saying no to these I guess Huawei in particular is the third largest cellphone manufacturer in the world and they they have a close tie with a communist government and they believe there is there might be some Shenanigans going on with them their Electronics I mean I know that the the constant talk about trying to just don't buy certain products or the state department told people to stop buying them by the national security threat of third-party spying they don't know what is the singer Australia to ban while away from 5G rollout amid security concerns

USA she was slightly different us was who was the state department that was saying for security concerns did not exist from any States national security as if somehow my buying a foreign car is you know somehow jeopardizing what does that mean are we far as allies it every single War how are you saying that you have to put tariffs on Canadian product why is Trump doing this trade deficits are the consequences of a problem most politicians ignore the trade deficits right at least Donald Trump is putting them on the spotlight and saying look this is a problem it is a problem but not for the reason the Trump believes in the short run in the here and now the trade deficits benefit America because the world is subsidizing our standard of living we're getting to buy things that we otherwise wouldn't be able to

without these trade that since we wouldn't have all these consumer goods on all these shelves and then people would not be able to buy some prices would be much higher if we had to make stuff ourselves by having the Chinese make it you know it's a lot cheaper plus you know it's great for the our environment because you know we don't have to pollute our own are being just a factories were over there but he's so he's right that it's a problem but in that is a reflection of the fact that the economy is inefficient and that's what needs to be addressed it's like you know we have cancer but you just can't put Band-Aids on the blemishes or something to cover up you got to actually get to the the source of those blemishes which is the the Federal Reserve and they're bad monetary policy and our government policy or fiscal policy or regulatory policy we need to have that type of change and then the trade deficits will go away but if we simply try to put tariffs on it's just going to make our own problems with all that's going to do is make prices higher is this going to mean that Americans do not disturb

more money by stop and it also actually undermines a lot of American businesses that export into countries that are retaliating and also a lot of us businesses in Port components and then they assemble the components here but now those imported parts are going to be more expensive and so their net exports are more expensive and so they become less efficient the people that are supporting Trump the people that are happy with the way things are going I have said that him lowering taxes for corporations encourage growth and encourages it it gets more jobs and there's this more economic activity does that make sense will look if we eliminate taxes yeah that'd be great I'm in the lower taxes are the better it's going to be but not if you borrow the money to pay for the tax cuts so the idea is if the government now has to go into the market and borrow money that it no longer collects in taxes that's going to have an impact on the economy that's going to further deplete our savings pool that's going to put real

blood pressure on interest rates and obviously the FED is trying to counteract that but you know what they did with the tax code though they dramatically complicated and I mean there's a lot of there's a lot more complexity of the code now then there was before not like it wasn't komplex before so I initially they talk about simplifying the code Dakota lot more complex and they certainly you know they lowered the rate lower taxes for something but they raise taxes Brother people depending on which state you in your lot of people now they're going to pay higher taxes while people in California are you got asked you know you got a 13% income tax in California that's no longer deductible on your state income tax on your federal income tax deduct your state income tax from your federal income tax so you know you did the effective tax rate was maybe 40% less because it was just money you would have sent to Washington so instead you sent it to Sacramento but

leave this state tax rates are almost double now what they were last year and it did it the way it impacts the pair so there's a big increase in state taxes for individuals you to know that no yeah you know you had a good idea to move to Puerto Rico with me I know but I hear you got some of your power we got power now now but how many months are in guards we talked we talked a lot about Puerto Ricans post Trump trumpet or do you want but it was before Maria but I was on the show and we were talking about Puerto Rico and we also talked about cryptocurrencies and Bitcoin stuff like that but since then

hundreds and hundreds of crypto guys have moved to Puerto Rico for your go there there bear now there they did, they call it a portopia they all want to come there because there's no capital gains tax but I got a new kind of credit you cuz I think a lot of these guys didn't know about it until I heard about on this podcast and I said wait a minute there's no taxes down there in Puerto Rico and now they're all there and they moved it just in time for the hurricane before the hurricane is moving after the hurricane a better move financially probably cheaper land yeah I know like the real estate that was untouched you know I mean my community weather the storm pretty well so maybe it made it more desirable really

it's not even though I'm on the beach the elevation is Philip is very high so we can get any flooding and I guess the construction is much better there you know the houses are built better so they didn't we start in the community got up in you up and running a lot quicker so how long were you without power all there was officially there's probably no power for a couple months but I have my condo has power just as a big generator and so we are caught up out of the right away but the house so I ended up buying a house there too right before the hurricane and I didn't have the generator put in yet so the house didn't have power for months and months with just exasperate I had some damage to the house and then the fact that there's no power made it worse because it got very humid in there but I've since purchase a generator and I've got it all installed and so I'm ready for the next step for the next hurricane but you know I got those funny funny before the hurricane there was a lot of controversy from this podcast from My My My by talk about Puerto Rico biggest

mentioned on on the show that I had move some employees to Puerto Rico have three single guys that used to live out in Southern California and they all moved out to to Puerto Rico because I moved my business that this was in 2013 I moved my asset management company your Pacific Asset Management moved it to the Puerto Rico and us guys moved out there single guys are having a good time there was a lot of very beautiful women in Puerto Rico you know I meant I think five Miss universes have been from Puerto Rico which is which is a lot for a small place and I said that you know they have a good time there because the labor force participation rate in Puerto Rico is terrible I mean hardly anybody has a job maybe maybe a third of the people who should be working or working and that's you know and that's again because of the socialism down there the welfare state that's Darren did you know and the minimum wage in Puerto Rico is effectively like you know it's the median wage it's like having a 15 $17 an hour minimum wage here so it destroys a lot of employment opportunity on an island

I mentioned that you know if you know that they have a good time down there because there's a lot of women and if your guy and you got a job I mean you know you can write your own ticket that's a big plus to have a job because women want to date guys with jobs and and it was controversial so you wouldn't think it would be but all of a sudden all these big guys down there in Puerto Rico the probably say something again because obviously they watch your podcast but but a couple of really big guys were calling me out saying that I'm insulting Puerto Rican women like you know I'm calling them whores or something because I said that they want to date guys with jobs doesn't every woman want to date a guy with a job yes it's not just yet I mean probably one of the main reasons we get jobs is to get girls oh yeah I mean generally the more attractive the woman you know the more the better your jobs going to have to be to attract her

is a term for that right hypergamy like women tend to gravitate towards men with her social status status and in higher-income are you going to take you there you go I mean it's not like I didn't think it was a controversial just making Much Ado About Nothing being said it you on the podcast and talk about it against you feeling it now but I'm correcting a good job at its favorable it's not only just because he can take her on a date I mean when a woman is on a date with a guy I mean everybody is a potential husband and think he got to bring some to the table so you got it you know you got to be you got to have ambition. So we can go getter you got to live in your parents basement

what was the protest and I was insulting Puerto Rican women by saying he wanted money but look I mean having a job is a key thing I mean. We don't care the guys don't care as much with a woman does but women I mean that's a big nothing don't care at all if she's hot is God makes a lot of money in the girls hot shot nice guy with a friend the first thing the guys going to say ask what does she look like it's the first right if a woman is going to tell a girlfriend about a guy what's the first question probably what it looks like first what does he do what does he do for a living I think first it's what he looks like second is what it is. I think what he looks like his lower down on I think it's what does he do for a living is he does have a nice personality of a good sense of humor

funny I think how old is he looks a little bit lower down on a woman's totem pole of depends how hot she is

my baby doesn't have a good she's doing in the marketplace but I mean it was almost part of the whole political correctness thing of it like or the meat to like you can't you can't say something anything that you say is going to be spun like this is this is against women cuz I'm stating something that's very obvious that that that so can't State office anymore no no Peddlers that make these articles and write these blogs who the fuck is agreeing with them I just I just don't buy it I think what they're doing is there striking Accord and a few malcontents go along with it but you read those things and you think like well there's some validity to this because it's you know X publication

that's offencive to anybody like if somebody gets offended then you know it like you know this some Moses you know this is one of these contestants read the story but one of the contestants on The Bachelorette apparently on his Instagram page he like some jokes that that the Old Navy off call Lil Bit offencive jokes that right wing somebody on the right I had posted on their Instagram page and was like a big deal to take down his whole Instagram page like almost all the jokes offend somebody but now you can't even have a sense of humor everything has to be you know you can't you can't offend anybody which you don't have a right not to be offended that's a whole part of freedom of speech people are going to say things and do things that you might be offended by and you just got up you just got to deal with it you can't be looking like you.

against a door but these are these offense Merchants these people that get offended they they that's the currency they they they trade in being offended and then once they find something that in anyway defensive did you start writing blogs about and making videos about it and that's there that's there in there in is finding something Peter Schiff said about Puerto Rican women just saying because it's just this is the world we live in a while talk about Puerto Rican women I'm either white most of them in their little darker skin then then then you can taste but in this day in age that's interesting conversation I just had with a friend of mine who claims she's black black

offended it's about feeling that they have a right to something or not being Tyler people confusing a privilege with with right right so all these groups at the women's rights gay rides women or they don't have rights because their women right we all have individual rights and so men and women have rights because their individual they don't get a separate right because they fit into a group all that is about privilege and you don't have special privileges gratitude by the Constitution we don't have rights and when people try to pretend it a privilege or group rivers and try to give that the status of a right I know you talked about it on your on your podcast we have the Supreme Court ruling recently regarding the gay couple that wanted wedding cake

and they sued because the baker wouldn't make them a wedding cake with you know a couple of guys on the top and in decorated in a way that it was obviously for gay wedding understanding about that not only did they not do that but they weren't making Custom Cakes so they didn't make custom cakes for weddings so when is the gay couple came in so they wanted a custom cake mix and I we don't make that like that was also part of the problem is they don't that's not something they even do they could have sold them a cake there he had that one or two dudes hold the problem is first of all it's not like you have this gay couple that just went into a bakery and then they were denied the ability to buy Cake they probably went to a hundred bakeries to find one that wouldn't make the specific someone to deny them

right and of course you know if your Baker I don't know what the margins are on wedding cakes but wedding cakes are probably like the Holy Grail cakes right I mean you're if you're sitting there on the small bakery shop you're waiting for somebody to call for a wedding cake cuz those are the biggest case you can make very expensive cake so everybody wants to do a wedding cake nobody cares whether those two guys or guy and a girl on the top of it you just want to make the money that you're going to get for baking wedding cakes now you come across a guy who just has a strong religious conviction he just doesn't want to bake a cake for gay wedding okay I mean he's the one that's losing he's losing out on that the commission to bake the cake I mean the gay couple isn't hurt by that they there's so many bakeries that would make him that cake was this coupled where they denied because of religious reasons is that why the people said they weren't would make the cake

far as I'm concerned it doesn't matter what their religion is nobody is required to perform a service for somebody else if they don't want to that's what it was a black couple yes and one of these people racist in where they said that we don't want to bake a cake for a black couple the black couple can go find a bakery that will bake them a cake I mean what's the odds of there being a racist Baker out there but I know I mentioned if I was in today's day in age it's less than ever before I mean it still possible right right right and if he if I go in there and the guy says you know I don't want to bake cake for Jews fine yeah because let's assume that he knows I'm Jewish she hates Jews and he spits on the cake I mean I'd like to know like right up front that this guy was about to bake my cake hates Jews so then I'll go and buy my cake from somebody who doesn't hate Jews cuz I don't want to worry about what I'm going to be putting

my mouth I mean why would you want to even Force somebody to bake a cake for you that you got to eat if you're forcing you to do it or he does it this is all nonsense but you get the idea that you can't discriminate that you can't make choices right eye I have a right as an individual to do things that I want to do but I can't force somebody else writes her about the government you can't Rob from me and you can't steal from me so you can't take away from me something that I have but I can't force you to give me something I don't have and just because I feel a certain way like if you go back to the be at the gay couple to say okay you can't discriminate how did the Supreme Court rule on that by the right of this individual but it wasn't like but I think it had to do with some of esoteric state law it wasn't a definitive ruling that says that you have a right to discriminate which I believe it I believe you do I don't think the government should be discriminating but

private individuals but the part about to make his uniform for gate so let's say that you Joe Rogan were working as a gigolo that was your job you just had sex with lemon and you charge the money that's your job now what if a dude comes up to you and wants to partake in your services do you have to serve him that's not the job sir the jobs women you can't discriminate discriminate in terms of having sex with men Gigolo Gigolo is a guy with sex with women bro discriminate against man how could you deny a man the opportunity to have sex with you interested

you say that you can't look and you can say what if it's what if it's not sex okay that's fine but for some reason you just don't want them besides guys you just only want to Massage Girls brushing should be able to do that

yes yeah I mean so because it's it's it's touching people if you if your business you want your business to be limited all I do is massage chick bro I don't touch dudes but you should have a right to do that but then once you extrapolate it you just make a decision now if you could make more money if you massage girls and guys cuz you have a bigger Market but if you want to limit your business opportunity just women will that hurt you right then it's your right to do that yeah like a massage therapist that doesn't want a massage guys you never hear about those and you don't get offended men don't get offended by that but you know you could do it as a as a customer I mean. You know let's just say I'm a guy want a massage and I can say look I prefer to get a massage by one most guys would probably prefer to get a massage by woman well is that that that's totally legal they always let the customer the customer can discriminate the employee can discriminate right nobody would

let's say I'm black and I want to work for a black boss nobody would say that was wrong I can go to a white boss and I can say I'm sorry I don't want to take the job cuz I want to work for some and black but you can't sue me for not brightly are actively seeking out a black boss which is the difference between that and being approached by a bunch of white people and say no I hate white people as if a if a white person or even a black person was seeking out a job application of a employee can do it all the customers right if I was if I was if a gay couple wanted to have a cake bake and I went and they went into a bakery and they said yes we like to have a cake bake are you straight or gay cuz we want our cake to be baked by gay Baker & the straight guy said no I'm straight start they fight they can keep searching until they found

and I'm not saying that we should make that illegal I'm just saying the law should be consistent that means they like and don't no one says you didn't go into this restaurant because you don't like gay people because gay people run this restaurant nobody ever says that force you to use or to have someone use your services even if you don't believe what they sent must be racist if you believe that people have a right to discriminate look I believe the people have a right to say a lot of things that I disagree with I'm not going to stop them from saying things and I believe in free speech even if what you're saying is idiotic or offencive I believe people have a right to discriminate against at the bigger problem is when the government becomes the thought police because the minute you make it illegal to discriminate now you have

get into people's minds right if somebody doesn't promote somebody or fire somebody and they happen to be black or a woman or two older handicapped but no doubt you're going to say oh you fired that person beat because she's black but you're assuming the motor for firing people and now I got to prove that I didn't do what I was thinking when I did something none of that all of that too makes it so much harder for employers to me looking what just happened this isn't race but it's part of it you see that story the other day about Trump's driver is suing him for overtime yes I did see that for like 25 years driving his personal driver for Donald Trump and he's now suing him because he claims that he worked more than 40 hours a week and so he wants more money right now course he work for 25 years why didn't he ask for a raise like during those 25 years

but apparently his job he had to be on call for maybe I don't know 10 hours a day and an on-call doesn't mean he was actually driving he just had to be available to Trump if Trump needed them but that he can be on the internet he could be watching a movie could be reading the book send an emails going to trade in stocks whatever he wants to do so it's not like it was that like he was really working but he had to be available so we couldn't go out of town but he's going back and he says that well I had to be available for more than 40 hours a week or maybe it was 50 hours a week or 55 hours a week and now he wants back pay time-and-a-half Rikers overtime laws so you got to get time-and-a-half but first of all he wasn't even an hourly worker think I collect a salary something like I don't 65 $70,000 a year was his salary

and you know he knew what the salary was when he took the job he knew what the hours were if he didn't like it he could have said something to Trump you could have demanded a higher pay or you could have quit right but instead he works without complaint and I'm 25 years later files a big lawsuit now the toys out of work are you still working there and he's working at which you know another course if you fire them when they sue you it's like always retaliation then it makes it worse but the problem is Trump he's got a lot of money I mean he can deal with this but your average small business man you know this kind of stuff kills you when people start suing you it cost a lot of money and a lot of that happens to with you know the the the Discrimination laws and it because a small business owners are so concerned about getting sued that they try to hire people that they think are less likely to sue them and then it ends up backfiring cuz it works against all the people who are protect

classes for now able to sue you and I but I also want to point out the overtime laws for so many people think of this is terrible right I mean you should pay overtime overtime is those laws are probably some of the worst laws out there because they don't protect workers right because what happens is let's say you got a job and you're working 40 hours a week and you're an hourly work and you want it you want more hours you want more money right maybe you're going to maybe you want it you know you you trying to track the higher caliber of girls who try to get more money you want to work more hours to access that sucks what you just said I'm writing a Blog so you're tough you tell your boss hey can I get an extra 10 hours a week right I want to get some I want to get some I want some more money as well I'm sorry I'd like to let you work an extra 10 hours but I have to pay a time and a half right and the guy said why don't need time and a half I'll just work 10 hours for the same pay that's your legal sorry I like I like to do it

but I can't it happen if that boss needs extra workers he has to go bring on a part-time worker so now let's say if I want to get an extra 10 hours work I got to find another job someplace where I can work part-time where the time and a half law doesn't apply but now I got to get from my my full-time job to my part time job how long is that take me how common is this so the people are denying people extra work even though they need because they don't want to pay the time now I have people that work for two employers and then other people working in there they're going back and forth between the same company so what you're saying is it's weird if someone that has to work extra hours why you paying them double the money for time and a half hour and a half why you saying the extra money because they're doing just just cuz they're working more than 8 hours a day

do if you can hire somebody part-time but the point is that all of these the details of employment should be negotiated by the employer and the employee the government should stay out of it you know and that way I'm half is a government different states have different rules and in federally they have different rules over what constitutes how much pay do you have to earn before the overtime rules apply this decision that's 40 hours a week all of this should be free for discussion no attention because you have the Liberals believe that hate you know two people should be able to have a relationship without the government interfering right they can have a sexual relationship it's it's not the government's business you know who you're going to your sleeping with well why don't they have the same believe in the

Freedom when it comes to economic relationships if an employee and employer having a relationship why doesn't the government just butt out and let the employer and the employee negotiate the relationship and the terms the relationship that they think is best for that because they're a lot of workers that I don't need the overtime but maybe there's another benefit that I would prefer to have that I could get but I can't because of government laws are requiring things that I don't want so you're against minimum wage all these government regulations on the last podcast was probably the dumbest law that you can come up with because all it does is hurt the very people that you are intending to help you you're hurting that the least skill people you're preventing people from getting jobs in the first place and you're you're craving extra incentives for employers to eliminate jobs to try

use Capital instead of Labor to try to Outsource mean nobody is going to hire somebody if they're losing money by people have a certain amount of productivity that they can bring to the table and when an employer makes a decision on who to hire they have to hire somebody that brings them at least enough productivity to cover the wages and it's so what happens when you haven't been wait-listed the minimum wage is $8 an hour and unskilled worker and I have to convince an employer to pay me $8 an hour I have to also convince him that I can deliver more than $8 an hour of productivity to his organization and if I can't do that I can't get a job now what if I can only bring $5 of productivity well that means you can't get higher well I mean if I could if I only have $5 an hour worth of skills and I can't get a job to improve my skills I'm stuck in unemployment forever I mean the worst thing you can do to a guy

minimal skills is prevent them from getting a job because it's the job that's going to enable them to increase their skills so they can earn more money in the future I know what you're saying but the idea is that if you have a minimum amount you allow people to pay then at least the people that are working for that company will have a real income when they can pay their bills and feed themselves and that this company because they have all the power they have all the money and a poor worker stepping in the market for the first time or you know just hasn't it been able to acquire job skills that would allow them to make much more money per hour that they would be taken advantage of by this large corporation corporations don't have all the power because they're not the only employee at all employers compete with one another for labor and in the end they put up wages I mean you can't pay people less than the market value of their labor because somebody else will hire them you know so you could talk about all wouldn't it be great if everybody can earn more

money has there ever been a proven example this where they've had no minimum wage is Ben Mitchell boom 1830s but you can look at situations of countries that have no minimum wage and they have very low levels of unemployment and you can look at areas where the Governor's Inn in Singapore and Us in Singapore in a lot of things look at examples where the United States has imposed a minimum wage on other countries I mean the minimum wage is it a lot of damage in Puerto Rico but you know look at another American territory American Samoa American Samoa we basically destroyed American Samoa with our minimum wage in means that the Samoans are Furious about it just happened years ago actually and I even found out about it

I was watching 60 minutes and they were doing a report about I think football players and small and and during the report they mentioned that there was like a depression going on it's small and it was like yours 30% unemployment in really high inflation that's what the hell's going on Samoa so I wanted to research that on my own and I found out that we impose the minimum wage on Samoa and we destroyed all their jobs to biggest employers or tooth a chicken of the sea in starkist they were canning tuna and then it was shipping the tuna back to the mainland but the minute they raise the minimum wage they made the production uncompetitive cuz now you have to pay the higher wages plus the shipping cost to get the tuna back to the mainland so they stay all the Cannery shut down and then they created massive unemployment and then prices went way up on the island because they no longer had boats coming back and forth to pick up the tuna so now all of a sudden the shipping cost of imports went way up so they had massive inflation Sky High unemployment all because the minimum wage so you do you can look at your exam

poems about minimum wage destroy jobs in the right there yet you know they continue to advocate for these highway just because it sounds good though everybody should earn a decent Living Well you know not if you don't have any skills you can't handle of course you know a lot of kids you know they're 16 17 18 19 20 I mean people live with their parents still the most important thing is getting a job so you can acquire the skills to get a better job to know to move up the ladder in organization to enhance your you know your value do employers in general what's the argument against this against what you're saying about minimum wage against to all these ideas that you're you're just proposing to get a lot of pushback I mean I'm sure what you're saying is free market capitalism approach is it speak now there's a lot of people that oppose it course I mean you're a lot of people that don't think it out they think with their mind or there are there are there are shallots and they don't even

is racist I mean the first minimum wage is here it was designed to keep employers from hiring at the Chinese or from hiring blacks cuz they know that that's where the minimum wage came from prevent employees from hiring certain people so they said let's have a minimum wage and then and that will reduce hiring of people who have less skills and it and so ended the labor use the biggest supporters of the minimum wage art the labor unions and none of the labor unions workers earn minimum wage so you might acquire they do they still care about the minimum wage if they don't eat that they get paid a lot higher than than wage and it's because you always have a competition between skilled labor and unskilled labor let's say a business a business man has the option of hiring a skilled person to do something and let's say the skilled person is going to charge $20 an hour or an unskilled person and let's say I can hire 3 unskilled people for $5 an hour and that equals 15 well hey I'd rather hire

unskilled worker I can pay 3 $5 an hour to do the same job of one skilled worker but now at the skilled worker could Lobby for $7 minimum wage now if I have to hire three unskilled people across $21 aha now all of a sudden I hire the guy was skills so the labor unions benefit by keeping unskilled people unemployed because they have more skills and therefore they know they can get more work that sounds like a complicated mess to me right now this is the your hearing it all the time hearing it constantly news station with the lifelong but politicians what do you think it is that's causing this Uprising upswing with the woman what is her name that won in New York

the United States as I'm traveling now I still have an American passport but when I mention what country I'm from and I look we where you live that was at the select Puerto Rico as a country even though it's part of America is it still considered its own country even though you still are American citizens when you live there and you travel out of the u.s. passport if it's listed as a separate country from Cortez 28 years old, of course he was a white guy that's a that's a negative for him she's a woman of color people I think in that Community are just voting out of frustration if I thought I looked at her commercial you know and it's a very powerful commercial women like me you're not supposed to run for

office we're not supposed to court with me not this whole bunch of nonsense but if it's a story that that you know I think resonated with a lot of people like a let's Stick it to the Man right you know what they did but I think that this this wave is going to be bigger than people think I think people are under estimating the Chicago this is unique because you know she's in the community and so that message work better but look Bernie Sanders she won in a district where she didn't even run Progressive also won a primary and or neighboring District in the Bronx as a write-in for the Reform Party

I wonder about you. I think you can have to houseseats simultaneously Bernie Sanders appeal it wasn't just you know poor people in minardi's that were that were you know attracted to the Sanders message and what was that message it was attracted to not get a tax redistribution of wealth and it's all about getting stuff for free right it's all about you free healthcare free education Guaranty jobs I mean they want they want the government to guarantee everybody Chomp without you want two things that Bernie said that he could guarantee people jobs everyone in the country in the Soviet Union yet everybody has a job but nobody makes anything and so everybody is poor and you can't say what they want to guarantee a $15 an hour job plus benefits plus vacation plus Healthcare

to do what I do chords what's the governor Governors going to assign jobs everybody what are they all going to do I mean people forget that we don't want jobs we want the productivity that result from the job so it's about productive employment not make work right we don't want the government digging holes and filling them we want real jobs and and how to how does the private sector know what jobs are needed it's the bandits took it spin the visuals that wants something there Guided by a profit motive know the government that doesn't cover doesn't make a profit there's nothing to guide them to officially allocate resources and how's it going to just figure out what people should do and just assign them but this is the job you're going to do this as it would destroy employment in this country if if if you did that which is his name makes sense that you could offer everyone the job like you don't have those jobs first of all in the idea that well but would have to do with going to create X Mana construction jobs in x amount of dishwashing jobs in X-Men

Car Wash jobs you not going to where's the money going to come from from the private sector that would have created a fishing jobs and they're going to give it to the government to create into fish and chops it's a disaster but the problem is I mentioned earlier is the economy is in bad shape because of all the government that's what went back to buy the Occupy Wall Street is that people are protesting because there's serious problems in the country they don't realize that it's not capitalism that is crane those problems capitalism would solve those problems its government interference that is causing the problems that they're protesting and so the same thing with the Socialist that fit date they understand that their standard of living is falling I look at like they've the one of the things they want to do is they want to give free education try guess the Liberals are all complaining about the fact that college is so expensive and it's students have so much debt that's because of government before the government got involved College was cheap I mean government drove

the cost of college by guaranteeing student loans me that's how the government got the votes of students they promised the students something for nothing it said he bought for me and I'll guarantee I'll make it easier for you to get a loan to go to college right well the minute colleges knew that people could get these loans they started jacking up the tuition so they can benefit from all this government money so the college has benefited the banking system benefited by making Restless loans at the taxpayer was on the hook for but the byproduct of all these cheap money being funneled at the college's was at the college is raising the tuition Higher and Higher and Higher and then the politicians kept increasing the amount of loans they would subsidized and so all of this is their fault of government the government created the problem that they're not complaining about but it's do this don't understand that that's why I called you so expensive well no one sees a clear way out that's part of the problem and that's one of the reasons why socialism is so compelling it's like this song

like it's an alternative to what we're currently experiencing so people look at that and go maybe that's the solution I look people want something different I said that's why Trump was able to claim that he was going to shake things up and make America great again because I'm different because what's working what we have now is not working that's why I'm so afraid that when people who voted for Trump you end up being disillusioned because nothing changes their lives don't get that you and your eye pletely convinced it is going to be a crash come in the next two years prices I mean that because the government was able to bail everybody out that time they were able to print a bunch of money and go deeper into debt and the financial crisis if you didn't have money in the stock market and you didn't lose your job wasn't that bad right I mean you know you're going to you you were fought but this next Crisis even if you don't lose your job you're going to be affected by inflation prices are going to go way out because I think this is going to be

dollar crisis this is going to be a sovereign debt crisis and investors were bailed out the government was able to bail out investors last time with quantitative easing and all the tarp and all that but the next time investors are not going to get bailed out right there going to go down for the count because if they try and I believe they will try to reflate the bubbles Again by printing even more money doing another round of quantitative easing it's going to destroy the dollar so that they're not going to reflate the bubble in stock they're going to print the bubble in the dollar and showing the dollar loses value and prices go up and you have stagflation you have a combination of a of a of a recession and inflation at the same time and then of course what is the Fed going to do in that circumstance because their playbook is if you have recession you ease if you have inflation you tighten what if you have them both together no they just did the stress test bank stress test and the Federal Reserve came out

said that all the banks passed you know what what a shocker right the FED came up with the test that everybody passed but if you look at the assumptions that that they made about the economy under the worst case scenario that they assumed interest rates 10 year rates go no higher than 3% they don't they don't go down I just don't go up and they assume that inflation stays below 2% under the worst case scenario and they assume that the FED is able to lower interest rates to 1% zero again to stimulate the economy know what happens if inflation doesn't go that was it goes up but it goes up to 5% 8% what if interest rates go up to 5% or 8% 10% what happens then write all the bank's collapse what happens if we have a recession where the FED can't stimulate because inflate they have to fight inflation or what happens if we have a recession and the government has to raise taxes during the recession because the budget apps is exploding and they don't have the money

to pay the interest on the debt what does happen but I think that the political politics are going to play come into play and that the FED is going to air on allowing inflation to run out of control they're going to do what they can to try to prop up the economy and they're going to sacrifice $2 they're going to say well inflation is the lesser of the two evils but it's actually going to end up being the greater evil I member you know when Nixon impose wage and price controls which was a very misguided efforts kind of like you know what Trump is doing with the with terrorist trying to cure the trade deficit Rising prices are the result of inflation it's not the cause and so price controls don't work they simply try to mask the problem while it while it while it gets worse but I think they're going to let inflation get a lot worse

and what that's going to mean is that people need to prepare for that I mean people people need to do something we talked about that but I was on the show before about buying gold you know we talked about cryptocurrency I talked about in a gold money and by the way this is when we talk about gold money on your show before and so many people this just shows you how many people listen to this podcast so many people tried to open up accounts I go money because of our conversation that The Regulators actually shut them down they actually stop them from onboarding new customers because there was too many people come out of the platform

the reason that this is the bank this is this this is system that we're not because when you have a gold money account right it's not like just buying gold you have gold that you can actually transacted I can take my gold and I can send it to anybody I want anywhere in the world who has an account for free so it's like a money transfer so gold has to be actually store is gold stored in a in a Brink's Vault and you know they have bolts all around the world but I can transfer my ownership of that bowl to you or anybody else but because I can do that now all of a sudden the regulations there because they're worried about terrorist I worried about money laundering and so everybody who has an account there has to be a lot of scrutiny about those those accounts in those transactions just like it was a bank and so this is an alarm people got frustrated I got a lot of emails from people who are fresh but they try to open up an account and they didn't realize that it was The Regulators if you know they get mad at Gold money because they're not opening up their account or pooping their account but

the regulations that are the Cog in the machine but the good news is I think they've they've made me they satisfy The Regulators recently they've come up with some new system so the process is a lot more efficient now for people to go online and buy called and you know you could buy in a 25 50 bucks worth a hundred bucks worth of gold and actually have another store value another means of transact with other people where you can have some protection against against inflation and yeah I showed you I have my bud why they're sending you one of those go-karts I talk to him yeah you I showed you this card that I have to send them some money so I'm not sure if they're going to preload your account you know I went through you. I brought this card through that through their security today and of course every time I go through security with this card it Rick's so I always have to take my wallet out and put it in a in a little in the little bin for and it freaked out now they can never figure out what's going on because stating they see this thing of metal they have no idea what it is so it's

like that it stops me but it's a conversation because I had about three or four different TSA guys were all like you to look at it this card is that gold play 24 karat gold which is gold mixed with metal right mix with steel gold like gold it's also makes it something else by gold jewelry right you're getting an 18 karat gold or 14 karat gold card worth Gold Mine another way that people can buy gold pimp slap someone

they launch the company called mene Write the website pulled up in any. Com and this is a great way for average people to own gold but also kill two birds with one stone because when you go out and buy jewelry right and you by typical jewelry maybe it's in a 14 karat gold 18 karat gold jewelry is 24 karat gold and they sell it by the weight of go so if you let say you went you went to a department store and you spent $1,000 on a gold necklace maybe you have $100 worth of gold maybe if you spent $1,000 at me now you're going to get $800 worth of gold

and Renee will buy that that necklace back from you at any point in time in the Future 2 years now 5 years now 10 years now at whatever the gold value of the necklaces so let's say gold goes up by 30% from the time you buy the necklace you can actually sell it back to mene for more than you paid for it where is if you know if you have used jewelry that you buy at a department store what's it worth on the second hand Market $0.10 on the dollar by 20s maybe so this allows people to have nice jewelry but also own real gold at the same time you're going to pay a higher premium to buy a gold necklace I have a pair gold gold cufflinks should I wear my wife with my wife was this made you lie all the time she wears it everyday and so it's either you can buy it instead of buying other jewelry but you're not throwing your money away you're actually you actually got to go so bad but the point is that people need to protect themselves from the inflation that's coming because that is where we're headed right there

Robert is going to continue to print money to try to prop everything up there try to delay the Day of Reckoning for as long as they can and you know we've had a rally in the dollar recently because people think all the trade war is good for the dollar they're wrong it's a disaster for the dollar America can't win the trade War I mean we benefit from the trade deficit right now all we can do is lose in the short run if we lose access to all those good that we're not having to pay for with exports you know they're actually trying to say that the budget deficits going up is good for the is good for that is good for the dollar when it's not I mean big budget deficits are always bad for the dog is it means that government is creating more debt they're selling war bonds around the world supply of dollars also includes a surprise I of the treasury's and so if your flood in the world would treasuries or you got a surplus of dollars of dollars going to lose value and show people have to find a way to protect themselves and you know the average guy I mean gold is the easiest way to do that you know where the gold money account you could do it very

inexpensive course if you want to buy bigger amounts to go love someone wants to put 50,000 a hundred thousand dollars for the gold I wouldn't spend it on jewelry by you could just buy you a regular goal I got a company shift gold right where I sell maple leaves to cook Grands us gold jewelry should be in addition to not not a primary investor gold bullion two people coins we mark it up in a 1/2 percent it's a small markup the markup on jewelry is higher because we had to pay to make the Jeweler it's more expensive to make a gold necklace or gold bracelets gold ring so you wouldn't want to have all your gold in jewelry but did he said you're going to buy jewelry anyway you might as well buy real gold because now you actually have some evenings that has value in addition to having something you can wear I mean I don't I don't get a lot of value day today by having gold in the safe but if you know if you're wearing it right I mean so then

now you're getting an extra benefit from the fact that you have gold because now you know you get to enjoy it on a daily basis if if you're wearing it obviously if you don't have that much money if you know someone is going to buy any gold if someone has a couple thousand dollars that's know they were going to spend it on jewelry or I will spend it on Bold jewelry at least you still have the money right at least you know 80% of what you spent you still have it makes sense to me and I don't know much about gold but it says which where the gold is one of those things it's like universally been thought of us valuable like forever that's why it's money I mean gold is always been there anything else like that are other metals that have been used as money I mean silver has been used as money but I mean gold has been the Detroit relax central banks own lot of gold I mean not as much as they used to not as much as they should but central banks on his goals of monetary metal but you know gold is used in a lot of things I mean it's in self

phones and computers it's used in die in in in medicine and Dentistry because gold has properties that other metals don't have that gives it value not just it's it's physical Beauty but also the things that you can do it you can do things with gold that you can't do with other metals and just know so you can make something out of it and it's not going anywhere yeah the properties that it has you know no other metal can replicate and that's one of the reasons that has been so desirable for so many years but it also makes it you know ideally suited to be money and that's you to one of the things that we know Bitcoin Bitcoin is trying to digitally replicate the properties of gold and that's the whole selling point of Bitcoin they say it's digital gold and it does have

lot of gold properties that help it succeed as money but it doesn't have any of gold physical properties that gave it so much value in the first place and so you can't separate the intrinsic value of money from money money has to be a commodity it has to have value and and that that's where Bitcoin failed you I just had to I had a debate in New York and Soho lastly last week my Bitcoin whether it was going to succeed and replace the Fiat currencies and basically you know but I think it was Rick decide to the winner is before the debate they have a pole and they asked everybody where they stamp and then after the debate they ask them where they stand now to see if you know people change their opinion and since everybody in there was a whole Bitcoin audience and I had a confirmed

from several sources that basically everybody was saying hey make sure you vote this way before the debate so you can change your mind after the bait so that the pro Bitcoin guy is going to win by yeah yeah so did you initially vote neutral or anti Bitcoin will Bitcoin replace the dollar other Fiat currencies right in the future but they wanted to propose it initially before the debate right get your thoughts but they rigged it by having these people have contrary thoughts before the debate so is if Bitcoin was evangelized them like that didn't believe Bitcoin was the future but now after this our debate they were convinced by my opponent that it was the future when I read all the stores and if you go online you read the stories about the debate it's always like Peter ship lost Peter gets better

did Chef loses so it's not like I got caught up in the in the Bitcoin propaganda this is so much you want to talk about cryptocurrency those people are all oh yes I said giant group of them hang around the crypto guys then I used to and yet you take I feel badly in that before as well some of them got very rich so I don't feel bad for these guys that I mean that that got rich that put you know a few thousand dollars in and I have millions of dollars you know I mean obviously I could I missed out on that myself right I mean I mean that there's a lot of bubbles that I missed out I didn't make anything on the.com Bubble I mean I made money when it came down I didn't make any money on the housing bubble until it went down and you know I missed out of the Bitcoin bubble butt but this bubble was tailor-made for me if there was ever a bubble that I should have been part of it was this one this was all it was all for the Libertarians right free market guys

hi fiat currency so you know I knew about it early on I mean not at the very beginning when it was like pennies but I knew about it before it was $10 and I knew about it when it was pretty low much do you have invested in 00 I got 50 bucks worth because no big spender well you know what happened is your after after after the the debate I went out to dinner with Erik Voorhees who is my opponent is wife my wife was there we had a group of people and so they gave me to show me how it works they gave me $100 for the Bitcoin and then I gave somebody back 50 but I kept 50 of it so I sell them now it's only worth $0.48. Doubt I was all over the place yeah but but a lot of money and it paid off right they think they got in and you know and that the market exploded and they have an opportunity to to cash out of the profit but a lot of them are not cashing out they're going to I think they're going to go down with the ship but

how do you say you think it's going down it it's not going to succeed as money it's not going to work it's just a highly suspect in the past that you know and the last time I did your show I mean a lot of people are going to Peter Schiff. Wrong on Joe Rogan about your Bitcoin I mean everybody thinks I don't understand it and that's why I don't believe in it it's because I do understand it but I don't believe it the people who think it's going to work they may understand the technology but they don't understand money and so what would I talk to these people to me you know it's very much you know I called I mean their date date date Thursday stay believe so strongly in this are so caught up in the hype and the hysteria and maybe they're blinded by the money they think they're going to make you know when this thing of these things are a million dollars a piece or wherever they they believe they're going to think it's going to go to the last week's a Bitcoin

I put the smart people are selling the people that got in early to try to con people into holding on so that they can get out or talk about a hundred billion it's basically some numbers on did they ever figure out who that Satoshi ishii Bora Bora see you on musk out of that way to wherever you wherever it is you figure they've got a lot of Bitcoin if they're real person and you might be in a group of people housing of these other cryptocurrencies is a bunch of different ones for different variants and that's part of the problem means they're scared what are not scare so many other currencies out there and it's only scares because it's coded to be scared because it really is scares

scared but it's it's not scarce and that there's nothing that any other cryptocurrency can't do that Bitcoin is doing I mean but they looking as an alternative not to Gold but to the current to the big currently they look at it as an alternative to both I think a lot of them although some people think it's maybe a complement of gold but you know it doesn't have any actual value inn. That's where I get in a lot of arguments with these crypto guys just a single goal doesn't have any actual value either which is laughable because of Coarsegold has actual value there are lots of things that I can do with gold in that shows that it has value there's nothing that I can do with Bitcoin other than give it to somebody else or that's the whole purpose of it is to give it to somebody else in 5 foot our whole economies kind of screwy it's entirely possible that I could shift over 2 as a crypto coin based economy don't you think cryptocurrency based economy governments can certainly issue crypto fiat currency the same way they issue paper fiat currency in fact most of our paper currency transactions are digital anyway I mean how much cash do you use

on a daily basis you use your credit card and and so banks are transferring you know that that would probably give them even more control over the economy which is a negative thing because at least if you have cash I can give you $100 in the government doesn't see that transaction and not spying on us but if they eliminated all cash and all transactions were digital then they would know everything I did I mean every dollar I spent would be recorded on some government computer and you know that's something that I I don't want and I think it'll libertarian certainly don't want that which is one way cryptocurrencies could backfire is if the government send up monopolizing cryptocurrency and an issue cryptocurrency alongside or instead of of the paper currencies that they issue now but I think part of the biggest damage that's ultimately going to come from it is when the cryptocurrencies collapse and people lose a lot of

which is going to happen the governor is going to be able to say you see we told you the free enterprise capitalism is no good I mean look what happens when you trust you know it's going to help make the dollar and the euro in the Yen look good by comparison even though these are fatally fraud currencies they're still going to look better than the cryptocurrencies the people who have lost a lot of money people there A lot of people that like Bitcoin cuz they bought it real cheap and even though it's gone down you know 70% from at I got up to 20,000 and now it's about 6,400 you know there's a lot of people that bought it and still have big profits but what about the people that bought it at 20,000 18 thousand fifteen thousand ten thousand they're losing money and if it keeps falling the goes down to 1000 or lower where I think it's going to have a lot of people that have lost a lot of money and so that's going to create a lot of problems and I think the government's going to come in with all sorts of new rules and new regulations on transactions to try to protect us

not from ourselves again it's just going to try to make government look good in the free-market look bad but you know people get caught up in friends he's all the time it doesn't mean that the free market needs to be shut down just because every once in awhile you know people get greedy and get nuts and it's not a reason to expand the power of government because government will do much more damage to an economy then small bubbles will do you have a boom there's any cryptocurrencies that are compelling is there is there anyone other than this one has a different owners different set of rules to me I mean you just can have a digital token that you just create that's going to have going to be a store value money money has to be a store value it has to be a medium of deferred payment so what that means I have to take my money for 5 years 10 years

like I can loan you money I can't loan you a bit stable and I don't think any of these cryptocurrencies can ever be stable because there's no real value to stabilize people say it's a store Valley but there's no value to store to the only cryptocurrencies that would work would be cryptocurrencies that were backed by a real commodity like gold and that can work but you know what gold money does is actually something better because you don't have to have a cryptocurrency you just have actual gold cheat the reason that currency existed in the first place cuz currency was always back by real money so let's say I had gold that I was storing at a blacksmith at a bar gold and I had a piece of paper that said you know you know pay to the bearer on demand you know this bar gold and it was written from a reputable blacksmith I could negotiate that piece of paper

or I can give you that piece of paper so I hate I own some gold at this blacksmith take this piece of paper and now you won't the gold right and so that piece of paper is functioning as a money substitute as currency but the real money is in a vault it's called but is I can't breathe it's hard for me too I can't break up that bar I can't just give you a small portion of it but would goal money is doing is taking that Old Blacksmith concept and bring it into the modern era because I can store my gold in a vault that breaks through gold money and now I can transfer any portion I can give you a gram of my goal the tiny amount of gold I can just send it to you for free and now you own that goal because now the ownership register is going to be changed and instead of being in Peter schiff's name is going to be in Joe Rogan's name and so once you can do that once I can take a bar of gold and and turn it into liquid money that can be used to buy a cup of coffee and you're doing all this to having physical

troll the gold not physically hold somebody has to have physical control and that's what a lot of the Bitcoin Advocates don't like about something like a gold mine isn't what you have to trust a third party to store your gold yes you do I mean but people have been trusting third parties with gold for thousands of years and you know you have a reliable third parties that can hold on to something or real value because you have to have stability mean that's the big problem that we have in the world today cuz we have no real money we just have these Fiat currencies that governs crate out of thin air and there's no real stability in the monetary system if we had real money if we were on a gold standard which I believe we will be on again eventually because that is the norm throughout history is to be on a gold standard all these experiments with fiat currency they don't work they did we haven't done in a gold Center since when the 70s yeah we went off at 1971 of course you know we were on a pure gold standard in the 19th century

the latter part of it and you don't think we're going to go back to that I think so because that's what works I mean what we have now works for government but it doesn't work for the people it doesn't work for Prosperity when Trump is out to try to say we have the greatest economy in history I mean it isn't it isn't even close we forgot about the fact that it's not even better than it was when Obama was President and he said that was an economic Wasteland but you go back to YouTube. Of time let's say 1870 through 1910 or in there that was the Golden Age of America I mean that is what created the middle class at the middle class was at was a byproduct of the economic growth that took place in America I mean we we we basically had tremendous economic growth we absorbed tens of millions of immigrants that were coming from all over the world and they weren't coming here for welfare and food stamps cuz they didn't exist there was no minimum wage

was just Freedom here and people came here from all around the world because they could be free or in America they could be any place else and it was those free Americans working when I win a gold standard sound money that created the greatest amount of economic growth that the world has ever seen in the shortest amount of time I mean people talk about how great the Chinese economy is but you look back at the American economy during that. And that was tremendous growth and I think we could have great growth again you know to the extent that we you know substantially to diminish the size of government but part of that would be to return to sound money and that would be gold but the cult of personality you know it's it's one of those things I have man I don't know this this is such a fascinating conversation because I would love to have a person who's equally educated on the stuff that opposes your Viewpoint and I'd love to see ya

I'd be happy to come on the show with the correct talk to me about it which is the act 2022 in Puerto Rico and whether or not Puerto Rico is in trouble because you have a bunch of rich people were there were not paying taxes yeah that was charged right that the reason why it was so difficult to rebuild the infrastructure post Maria was that all you rich guys come there and be soaked off the economy and that's why you're there because you weren't paying taxes the the the the tax breaks didn't start until 2012 very before that what was going on and what changed in Puerto Rico you paid the same 30% tax

text if you weren't there when you're working out on the money you earn so if I had moved to Puerto Rico in 2010 or 2011 which I did not do but how do I move there then I would have had to pay the same high Puerto Rican income tax that everybody else in Puerto Rico's pain but what enticed a lot of people to move to Puerto Rico was the fact that they reduce the taxes now the taxes are in 0 right you if you come there you're still going to pay taxes on some of the money that you weren't like my my business pays the 4% corporate tax so it's not as you are I pay 4% I can give myself a dividend that's tax-free but the corporations are required to pay out a certain amount of taxable salary to the owners so some of my salary is taxed as high as 30% the majority of it is taxed basically at the 4% but 4% of something is better than 30% of nothing plus they're getting 30% of something so

are the people who have moved to Puerto Rico over the last five six seven years that didn't live there before are paying a lot of taxes now to the Puerto Rican government even though the rate is very low the dollar amount is very high and each individual person who is move there is paying a lot more taxes than the average Puerto Rican who's already living there paying the higher rate so the people who move their bought brought significant tax revenue that Puerto Rico never was going to get just remember if they were tax and people at 30% people from California wouldn't move their people from New York people from New Jersey win the move there it was the low taxes that brought all these people to Puerto Rico who never would have been there and there now paying taxes but more importantly they're hiring people who are also paying taxes they're spending a lot of money locally in the economy generating revenue and jobs. So they been a big plus and I can tell you the people would move there myself included we do

made it a lot of money out to the relief efforts I mean as soon as that hurricane was over a lot of the ACT 2022 people which is what they be called because they went there to participate they were raising money they were helping out I mean so there's a lot of Charity that came to Puerto Rico that allow these people they wouldn't have thought of it if they didn't already live there but by bring a lot of wealthy people down there to Puerto Rico and they're they're living it there more inclined to help out their neighbors then when they were still living in the US Open for Treecko has derived significant benefit from an influx of wealthy entrepreneurs and that you moving in there and just exploiting that place by getting paid and low taxes in that it's it's a it's a bad thing for the people that live there that's a foster for the people because people are coming to the island bringing Capital businesses employment opportunities

let me ask you did you ever anticipated mean it seems big is Puerto Rico as big as any state like it's as big as Rhode Island like how big is maybe in bed and that's blank fits skinnier than that so it's it's a small place but you know relative to the Caribbean I mean if you compared to other Caribbean islands it's pretty big how long is a flight from New York to Puerto Rico actually in the air it's about 3 hours but I think the airlines you know they leave about 4 you know if you look at the flight time but actually from wheels up wheels down it's about A3 hour flight so it's it's not pretty. And there are a lot of places that you can fly direct to go to the West Coast know you got it you know you got it. Would there be a way that all these people coming in it did they could somehow or another fix this the whole electrical system that they have their their power grid and that look so great

Rico that's why they're broke right the Socialist destroyed Puerto Rico the Socialist in Puerto Rico and of course the ones we have in Washington because all their problems aren't self-inflicted but we created a problem for Puerto Rico and a number of ways right eye first of all right we have the minimum wage that you know that the average income in Puerto Rico is half of the poorest state in the United States which I forget I forget which is the poorest states like Kentucky Kentucky maybe but it's it's it's half of half of that but now you got a minimum wage that's the same as Kentucky so it is basically keeping a lot more people unemployed but then you have you still have welfare you still have food stamps so you have all these people now that are not working cuz they're getting paid by the government but then you have the Puerto Rican government which is a major employer of people work for the government and a lot of them are just doing nonsense right I mean there's so many people that are working for the government they're not productive but they're draining

resources from the Puerto Rican economy and be part of it was a power company you know you mean it's a disaster but the government is running everything there and so everything is inefficient and me while a lot of the productive people people who want jobs have left the island like if you think a high minimum wages grave all the people who are leaving Puerto Rico to go to Florida or effectively even though it's the same minimum wage they're actually going to a state that has a much lower minimum wage relative to the meeting wage because they can get jobs in Florida they can't get them in in Puerto Rico so you have that situation we're in a very few people are actually employees who don't have a real tax base and then what America did but really screwed them over

was we made all their bonds triple tax-free we said if your if you live in New York and you buy Puerto Rican government bonds you're not going to pay any local income taxes you're not going to pay any federal income taxes it's all tax free now if you loan money to a port Puerto Rican company right if you loan money to a private business in Puerto Rico you got to pay taxes on whatever they pay you interest but if you loan money to the Puerto Rican government the interest is tax-free so America subsidized invest in loaning money to the government in Puerto Rico but not to the private sector and so they made it very easy for Puerto Rican politicians to go into debt because all these Muni bond funds all over the country needed Puerto Rican paper to increase the yield on there fun to have everybody wants Puerto Rican guy bought so the Puerto Rican government is creating these bonds and they cannot buy votes I can promise all sorts of goodies to people who vote for them they can overpay government workers get mouse or two holidays right lots of time off

play can't keep borrowing money so they got deeper and deeper into debt because we created a an incentive for them to do that and now they have a debt crisis cuz all of a sudden Puerto Ricans bondholders realize that Puerto Rico's never going to pay back their money and then the other thing that we did to them and you I talked about I think on the show is the Jones act which if you remember Trump suspended it for like a week or two after Maria but the Jones act should be completely repealed and especially if Donald Trump's going to be talking to Joan generals get to Puerto Rico is that the Jones act says that if you want to transport goods from one u.s. port to another Us Port it has to be an American ship right so Trump is out there talking about free trade we need free trade the Jones Act is the opposite of free trade it's complete protectionism it's saying that if you want to take something

Florida to eat if you want to take something if you want to take something between the US and Puerto Rico you've got to use a u.s. ship you can't use a foreign ship right so there's no competition but what this is done is this as dramatically increase the cost of living so even though the average person in Puerto Rico Burns half of what the average person in Kentucky aren't groceries in Puerto Rico or more expensive than groceries in Kentucky so you have a lower income but a higher cost of living that's thanks to the Jones act and if they repeal the Jones act the cost of living in Puerto Rico and plunge and that's one of the reason to the tourism industry Puerto Rico is a beautiful island I mean if you haven't been there you should come it's it it's a magnificent Island it's all so great about it is it has a real culture is a real vibe to it it's a it's a city it's like it's a Latin American city on an island it's not just like a remote little while until it's a really nice place to be and it's one of the only places that I think you could really live in the Caribbean and and not feel like you're just you know

Gilligan's Island or not guilty but just you know like on vacation all the time it's a real City with real stuff going on and I've been there now long enough that I would go there without the tax breaks I like being there I look forward to go about crime and poverty in the big city in New York and just like all major US cities you got crime problems and again that's it there's there's a lot of reasons for that again has to do with government it has to do with the drug laws and all the other things other medical marijuana in Puerto Rico I think eventually they'll have probably have recreational but do you at least they have they have no medical but I just lost my train of thought right and so oh yes oh how it hurts the tourism industry so the Jones act makes Puerto Rican hotels unable to compete on the low end

hotels in other Caribbean islands because everything is so expensive because the Jones act and because they have the u.s. men would specifically the Jones act all the food in Puerto Rico is more expensive all the supplies so hotels have a lot of things are you going to Hotel there's all kinds of products you got bath products in there let's make it at 3 shift and all the food you eat all the drinks all the stuff is shipped in and to bring it to Puerto Rico is a lot more expensive than the bring it to the Bahamas or bring it you know to Barbados or someplace else so all these other Caribbean islands can get a lot of American Tourist to go there on for bargain vacations but Puerto Rico can't compete on the low end on the real high-end don't they can compete because there are people not as concerned about the cost but on the lower end budget traveler a lot more people would be going to Puerto Rico if it wasn't for the Jones act because the hotels would be able to cater to eat a lower price

point because they could hire the chambermaids for less money they could think if they could have lower prices at at the restaurant so that this is really destroying the tourism industry in in Puerto Rico which could be thriving but for the Jones act but also it is diminishing the standard of living of Puerto Ricans who are forced to pay higher price of milk with what happens is let's say there's a big ship coming in from China it would all sorts of goods and it's going to it's it's it's headed for US passport

if you could stop off at Puerto Rico drop a few things off and then continue on you know its destination that would be great it would be an expensive but they can't what it has to do is it has to bring all the stuff is going to Puerto Rico to the US unload it and then load it back on the u.s. flag ship and then send it back to Puerto Rico which cost a fortune and then the same thing with Puerto Rican exports so they're hold the whole Puerto Rican International Commerce is being limited by the Jones act now this also affects Hawaii Hawaii to suffer from the Jones Act 2 but Hawaii is much richer than Puerto Rico they have a much higher average income and so even though it it it it it affects them it's not as it's not as big a deal it's the same thing with her why even though Hawaii is a state yeah because yeah because Hawaii is a u.s. passport so Hawaii has to have all these Jones at chips as well. So if something gets delivered to Hawaii it has to get delivered to somewhere else first and then

to go to California for us. That's coming like from the Pacific they don't stop off at Hawaii they made seem so crazy for why he's actually a state like Puerto Rican girl because that was a strange thing it's right it's a territory right that's the best thing to Puerto Rico if it was a state they have to pay the state income tax they have to pay the Obamacare tax to pay the federal gas tax exempt from all that stuff but the Jones act has to do with you can't take a ship between to u.s. Ports they have there has to be a farm port to AUX port so Puerto Rico is not considered a foreign Port it's a domestic Port Hawaii of course is domestic because why is the state and so Hawaii things are very expensive in Hawaii for the same reason that they're expensive in Puerto Rico but Hawaiians can afford it more because Hawaiians have more money and so if your average income is is higher than you know your your food budget is not as important to you

so if we got rid of the Jones act that would be a big benefit for Puerto Rico but you know the worst thing that can happen to Puerto Rico is it becomes a state and I get tired of what I keep hearing these politicians say Puerto Rico needs to be State and it'll in all the problems will be solved their problems will go through the roof the only thing that will happen if Puerto Rico becomes a state is the welfare checks will get bigger to people in Puerto Rico but that's the last thing they need is is is more welfare they need more freedom than need more opportunity they need more free enterprise and all that will go away if they become a state because if you imagine all the problems of Puerto Rican has now eyemagine leveling the income tax on top of that imagine sending the IRS to Puerto Rico big that they're not even down there now imagine have an IRS agent so we can support for socialism is there any place where socialism has worked where there's like some extreme benefits of the people that live there where they can show

you know what capitalism is solution give people Freedom the solution deregulation that's the solution let businesses Thrive more people make money businesses of grow people have more opportunity to talk about Sweden right this example but if you want to look at the history of Swedish socialism Sweden became a very wealthy country before they had that socialism are they were very much of a free market economy and it was the freedom that produced all the wealth but then whenever you have wealth and you have freedom you're always going to have any quality right because people are smarter than other people more ambitious part of working so whenever you have freedom you're not going to have equality an outcome even if everybody has an equal opportunity and of course even that's not true equal every everybody is equal in the eyes of the law but there's always going to be some people that will have an advantage

maybe they have better connections they were born to parents that are other people but the beauty of of capitalism is that everybody is better off when you end up with socialism you equalize everybody but you equalize them at a lower level you redistribute the poverty the people who end up wealthy are the people who have political connection so the wealthy people in socialist countries are the are the people who have political connections what happened with Sweden and then of course you have the demographics of politicians who will get votes by appealing to Envy hey this guy has more than you it's not fair and of course politicians always promise something for nothing right vote for me and I'll give you this that you don't have to work for right I mean that is the problem with a democracy I mean people vote for crazy things that's why the founding

fathers when they created America they created a republic why people don't understand the distinction but we're not supposed to be a democracy the word democracy does not appear in the Constitution it does not appear in the in the Declaration of dependence you know that the Pledge of Allegiance right I pledge allegiance to the flag United States of America into the dangers of democracy will democracy is what brought socialism into Sweden and it's screwed them up right it's screwed the economy of so much better than the last 10 years they've gone the other way it's save Lord income taxes they abolish the inheritance tax in Sweden I mean does that sound social previous to that socialism has a stronghold yeah it was yeah yeah how long is getting bigger and bigger probably going from the 70s 80s the Swedish mixed economy

sodomy socialism until they got Bank Rosso and Landon is the only successful and it's not but I was just going to ignore way to a lot of it then Scandinavian countries Denmark but you have to look at how successful they were before they became socialist and then you also have to look at what the government is doing there because the taxes on business are not extreme the taxes are on the average guy they have I think in Sweden I think the Nevada's about 30% sales tax you have to pay I mean this is a high sales tax I mean and then the income taxes impact average people so cuz they know the swedes know what they really jack up taxes on businesses the businesses will just leave and I'll destroy their economy so at least they're trying to redistribute the wealth from the middle class to the middle class you know but this stuff doesn't work and you crate a generations of people who now.

want to work you just want to live off of other people you destroy the initiatives you destroy the incentives and so the success that Sweden enjoyed is a byproduct of freedom and capitalism and since they moved in that direction they have slowed down that progress but the Swedish people have recognized that and that's why the reforms that have been made over the last decade or two have been to turn back the clock to move away from those socialist policies and to try to dismantle. They haven't gone completely the other way just like New Zealand I mean New Zealand went so far baby k they went from like a a a totally socialist type economy one that was like you know this was the example if you believe in socialism you would point to New Zealand as see this shows right and then they went bankrupt they went through a huge economic crisis in the 80s Frank previous to being socialist were they successful with capitalism

you never have any wealth to redistribute its capitals in the crates too well that the socialists want to redistribute so let me ask you this though cuz we're going to keep going around in circles with this you are going to study for long. Of time what is it about socialism that so peeling to be to people if there is no examples of it being effective keep coming up station or lack of understanding of Economics like what is it about it that keeps like when this woman who just won and she seems like a very nice person when she talks about being a Democratic Socialist never gets fired up and is it ignorance or certainly it's a lack of understanding veganomics most people don't understand it but look him into a lot of reasons that socialism is appealing to people especially when they're young right there's an old saying that if you're not socialist or if you're not need a liberal by the time you're coming. Martin have a heart but if you're not a conservative

timer 28 you don't have a hair and Liberals are just people that never grew up right it's like it's like it's like it's like they still believe in Santa Claus that's what it is you just never socialist liberal even people believing in big are because usually what happens when you're a kid right and when you're in high school you've never had a job and always stuff sounds great until you're out in the real world you know that's why it was a mistake to lower the voting age down to 18 I mean I don't even think 21 it should be higher if you think about the original voting age when it was 21 a hundred years ago a hundred fifty years ago think about a guy who was 21 back in 1850 is it a real world

look up son you know the reason the reason they raise the voting age was because of Vietnam because of the draft right they were saying old enough to fight old enough to vote which was a separate when you're 18 I don't believe in the draft I would rather get rid of the draft sounds better I would say 25 cuz it's the age that your frontal cortex develops when I move to Puerto Rico I gave up my right to vote vote at all for president for anything I can't vote for Congress is still a state right or is a territory Rico and you move to Florida

Congressman in your District you can vote for a Florida Senator how much time you have to spend in Florida to be in Puerto Rico but you know if you're if you're in Port if you're in 283 days is that you know the cutoff for where your presence is going to be but the important thing about voting is not that you get to vote the important thing is to have good government right and what is good government good government is government that respects private property that respect that you know if you go back and look and I mentioned this on my own podcast recently I talked about the meaning of American what government is 4 in American if you go back to the Declaration of dependence we just had that we celebrated our independence day you know just a couple weeks ago but government is here to protect life liberty and the pursuit of happiness their government issue to protect our rights it's not here to give us free stuff it's not here to take stuff from other people and give it to us it's there to protect

right it's there protecting life liberty property and so the goal of government or the goal of an election is to have good government now as far as I'm concerned I would rather have good government where I don't vote then bad government where I do vote right because you know what are things people should know you're going to move to Puerto Rico you can't vote who cares I vote for the loser in every election what difference does it make when some idiots are going to go to me and that's basically who's voting in America I mean if you think about it the elections are decided by the TV commercials right because most people you know they know who they're going to vote for can you imagine the person who's who decides who's going to vote for based on a TV commercial I mean these guys are morons a swing and we end up with horrible government government democracy almost guarantees horrible, but what are the things you want to do if you're going to have democracy is okay let's have responsible people voting who you'll understand what they're voting for who actually live

and worked in the economy of had a job who have paid taxes will run businesses moving Floyd people if you've never had a job if you're still living with your parents why are you voting I mean we might as well lower the voting age of let people in kindergarten vote so they can vote for whoever promises them free toys and people say you don't know it's unfair if we can have good government without 18 year old voting that's fine yeah but the left once the young people voting to start their stupid enough to vote idealistic and you said why is socialism appealing to somebody who's young because they don't know any better they haven't lived and it sounds good right oh you know I care about people liberals think conservatives are conservatives don't think liberals army they just think they don't understand they're missing form right there they don't they don't get it that's sort of Shifting it seems like there

more people that are thinking that Liberals are mean now than ever before because calling people out there only Tyler and if you agree with this to be tolerant you have to tolerate intolerance right that seat height we talked earlier about discrimination look if somebody is a racist I'm going to tolerate that fine you can have your own opinion I can disagree with your opinion but fine Live and Let Live I live in a free country people can do things I don't like but to a liberal if you don't if you don't think exactly way they think then oh yeah they're so they're becoming evil and mean so if they usually just be ignorant now there now they're ignorant and add me will not just mean but harassing like people encouraging people to harass people that have separate political views and opinions

Trump Administration or do you like Trump as a candidate because he was saying a lot of the same things I was saying when he was a candidate it's just at the minute he was riding it we have to shrink government so from you economically it made more sense than Hilary more big government I mean you know what I think she would have you know continue the failed policies but unfortunately Trump has continued those policies as well and he could end up being a bigger disaster if he is the Catalyst to put a Bernie Sanders type into the White House in response when he was in response to how much worse the economy gets and he takes the blame for it but

initial view that the economy is going to crash inside the next three years if it doesn't it does really well but stays in the state that has its is it doing that well next time it's it's no different than it was when Obama was President there's just some more optimism that things are going to change what we were talking about this before it happened I remember you going on these different talk show saying this is going to crash and people weren't listening to you and they were like all Peter Schiff does no talking about and then it did crash and then they they listen to you you're the only one that saying it's going to crash again but they never really listened to me they already be yours that I had to cuz you were right well here's the irony of it all because leading up to the 2008 financial crisis and if you go to my YouTube channel you can see like my introductory video is a little Montage actually shot as part of my Senate campaign when I ran for Senate in 2010 but it's a bunch of people you know

what they said hey you were right you were the one guy that called it so I used to be on I was on television a lot on Fox CNBC CNN Bloomberg probably once a week for 3 or 4 years I was on something that I used to get the Washington Post you should call me the New York Times you know I got you People magazine articles written about me when I was just loan kind of crazy guy talk about a housing bubble talking about a financial crisis that was coming they at least you know gave me a platform to Are My Views even though they mocked up and laughed at him I was still there I was like the gloom-and-doom guy doctor at a Time magazine article with me you had to pay at a sickle in my hand I was the Grim Reaper but anyway the notoriety you Nostradamus but nobody will talk to me I'm not on any television shows about it

at this point people just think look you know I've been saying talk about this problem for so long they look he doesn't know what he's talking about they forget but I was warning about the problems in the housing market for for 5 years has the prices kept going up you know it's not like the things that I see happen immediately but I think at this point maybe in the past they thought maybe there was a chance I could be right even though it's a slim chance now they probably think it's impossible that I could be right so why even give me any air time so I'm like I come on shows like yours if people actually get to hear the truth but if you go back to what I was actually predicting 2008 that financial crisis was the beginning of the end not the end would I would I was predicting I wrote a book about it got crashed through how to profit for the coming economic collapse it came out in February 7th I said we have the Shoot Bubble you have his housing bubble at the Federal Reserve created right not the not the private Enterprise it was created by government and in fact after the financial crisis

Congress had a hearing to try to determine why we had a financial crisis and I tried my best to get invited to testify they refuse to let me be there because they didn't have anybody there that predicted it because they wanted to basically come to a conclusion that they had already arrived that was that it was caused by a lack of Regulation and we need more government right so they didn't want me there to say it was caused by government and we needed by the way I have testified at Congress twice since then and both of my testimonies are on on the on YouTube and you got to watch him. And if I was on the first time I was convinced they would never invite me back because I I don't treat these guys with the type of respect that they normally get so I thought they would never invite me back in the actually invited me back and then the guy that invited me back I fired better suited for those talk shows they bring you on your so much better suited to do in your own videos or doing some

like this where you could just go on and on and on now I have a complex issues but the point that I wanted to make about the crisis as I wrote back then that we had this bubble and we were going to have this crash but the economically crisis was not going to be that it was that beat the class that I saw coming in 08 was the beginning I said that we have this disease that the FED is crated and its manifest itself in this housing bubble and it's going to pop and we're going to have the worst recession since the Great Depression we're going to have double-digit unemployment we can have trillion dollar deficits but I said that's not what's going to kill us I said we're not going to die of that disease that disease is survivable I said what's going to kill us is the government secure they're going to print so much money they're going to try to reflect these Bubbles and that's going to cause a dollar crisis and a bond price

and that was what was going to start the economy and that's not happened yet now what I did not know at the time and I didn't put a date on it I didn't know it would take so long I mean here we are Ten Years Later almost and it has that hasn't happened yet you think it's got to happen what I got wrong I said the government was going to try to reflect the bubbles I assumed they would fail they succeeded the bubbles now or bigger than the ones that popped in 08 and what's the difference between Bubbles and an actual functioning economy that sustainable degrees doing well right now the difference between a real economy production and Savings in consuming like if you look right now at the savings rate right the savings rate is near record-low and the politicians try to say oh this is because the economy is so good right everybody is out there spending that's a bunch of none

if you call me was good people would have more savings but if if you ran into a friend of yours that you had seen in awhile and you asked him hey how you doing and he said all well I maxed out all my credit cards I took out a second mortgage on my house you know I blew through my retirement account right you wouldn't say all you're doing great how you doing pension I got massive savings I got it I mean I paid off all my credit cards I own my house free and clear that's the guy that's doing well when you're when you're doing well you you get out of debt we're not doing that we're all living based on a bubble based on cheap money being spread out into the economy right why is the stock market going up because of BuyBacks why are people spending cuz they're going to keep her to death we have record student loans record credit card debt record Auto get everybody's what up with that they just had a survey out I think that less than half the people could come up with

four hundred bucks if they had an emergency I mean that's nothing people have nothing there living paycheck-to-paycheck and even that they think they need credit cards we have huge budget deficits we have huge trade deficits know we got record numbers of you know people older people that other working because they can't afford to retire me while the young people can't get jobs if they have those skills and just the economy is not real right it's all it's all disillusion just like it was what was going on before 2008 people were living off their home equity you know out here in California homes were going off people were taking out home equity lines of credit they were taking vacations they were buying new cars they were remodeling their houses all that Prosperity was phony it was the wealth came down and I talked about that for years what we have even Faker Prosperity now but it's not it's even less prosperous even fewer people are feeling the benefits than before

getting sicker and sicker as it takes more more air to inflate the bubble because in order to keep the bubbles from popping the government and the central bank has to keep misdirecting resources out of the real economy to sustain the bubbles to talk me through through two things 1 what is going to happen that's going to cause this big collapse you predicted way back in 2007 and hasn't hit yet what's going to cause that how's it going to go down and what can the average person like me to Know Jack schitt about economics what can we do to protect ourselves guy with an economics degree from American University to you when you go to us ecology study economics how do they do that

Tecumseh comic so you know a lot more than they do not that you're you're an idiot but I mean you just you just have to have common sense cuz they lack lack common sense but they get back to your question there's a bubble how's it going to go there this is how I think it's going to go down so everybody believes that the fed's policy of quantitative easing and believes it was a success they believe the FED revive the economy did they put out the fire they still don't realize that the FED lit the fire and they didn't really put it out it's just kind of it's simmering and people don't notice it what what's going to happen is the Fed never was able to normalize interest rates rates rates are still 2% that's still really really low and for all the talk about shrinking their balance sheet it really hasn't rung still enormous and I think that the economy is going to slip into recession and when it does the FED never got interest rates back to 5%

6% where they normally bring them they never shrink the balance sheet so now all of a sudden we go into this recession but it's going to be a stagflation because inflation is not really starting to pick up prices rise with a lag you know the inflation is the expansion of the money supply that's what the word inflate means it is to expand right you can expand prices prices can go up and they go down there going spanned what expands is the supply of money that's owed the supply of money expanded and a lot of that went into Financial assets so inflation caused stock prices to go up because real estate prices to go up because bond prices go up because the price of rare art to go up and all sorts of things went up because of inflation ultimately a lot of that inflation that was going to end up in the supermarket right you know at the at the gas station and then so you're going to have that at the same time that we have the recession now the bed is going to have to go back to the only thing he knows how to do we're going to do qe4 and we're going to

cut rates back to zero but now the markets are going to see this and then go to wait a minute you never normalized interest rates you never shrunk your balance sheet and now you're going to expand it again now you're going back to zero wait a minute wait a minute if you couldn't normalize interest rates following you know this last recession how are you going to do in the future I mean if you couldn't shrink a four and a half trillion dollar balance sheet how are you going to drink shrink A6 or A7 joined our bouncy if you couldn't raise interest rates back to normal with the national debt 1 trillion what if it goes up to 25 train 30 trillion mil what are the reasons the FED can't raise rates is because we have too much debt nobody can afford to pay the higher rates you know when inflation was running out of control in the 1970s that it's going to be a lot worse not write the inflation that we had the 1970s was created in the 1960s by Linda Johnson right by the Great Society the war on pot

the Vietnam War going to the Moon we borrowed all sorts of money we ran big deficits and the consequence was the dollar crash in the 70s gold went through the roof oil went through the roof and finally you know we had to do something about it at the end of the seventies just went went went when Nixon came in and in Ford came in they just continue the same policies they are doing a very Liberal Republicans Rockefeller Republicans and we didn't do anything about inflation until Reagan came in and volcker was there and so how did they stop you flation from running out of control Volker Jack interest rates up to 20% 20% and we had a recession where the Fed was Raising interest rates but that's save the dollar and it it it broke the inflationary cycle that was in the account of raising the interest rate yes they will they had to stop the inflation rate of course you know Reagan did some other things like that but the FED really finally you know got it got out in front of the inflation

and they brought it out but if you think about the difference between the United States in 1980 and United States today we were still the world's biggest creditor nation in 1989. The world's biggest debtor Nation the national debt was a fraction of what it is now I don't maybe was like a half a built-in a 500 billion I don't know the exact amount but well under a trillion but the the national debt was financed with long-term box like 10 year 30 year bond so when interest rates went up to 20% that didn't affect the majority of the debt that was out there that only increase the cost to the government of the new debt that came out right the new borrowing but today the 21 trillion-dollar national debt is predominately treasury bill stuff that matures in a year or less and it's so if interest rates had to go up to let's say 10% the government would have to pay 10% within a few years on the entire National

where were the government get all that money and it's not this the government corporations have never been this levered up individuals have never been this lever up in have adjustable rate mortgages back then now you got stop a lot of people that have arms know where you know their Mortgage Debt would go up with soap at this point the FED can't really fight inflation because it doesn't have the tools because we have so much debt if they raised interest rates to fight that inflation the the class would be so much worse than 2008 all the banks if they bail that would fail again but they couldn't bail them out of second time because they can't bail them out and fight inflation at the same time because you can't he's and tighten simultaneously it's one of the other so I think when the markets see that we're going back to QE that we're going back to zero they're going to realize that this is not temporary that this is permanent that the FED can never normalize interest rates at the balance sheet is never going to shrink that were a Banana Republic

your monetizing are dead that the fear of the FED has no ability to drain that liquidity and no ability to fight inflation that means the dollar is a bottomless pit that means the dollars going to keep falling that means nobody is going to want to own it and everybody's going to want to get out of dollars and everybody's going to want to get out of any bond that is. Then I'm it in dollars and then the Federal Reserve in order to keep interest rates from rising they might have to start buying Muni bonds they might have to start buying corporate bonds otherwise interest rates are going to Skyrocket and that just fuels inflationary fire and then we get a currency crisis right where the dollar is plunging prices are skyrocketing that is real pain and who knows what they're going to do maybe they're going to have price controls which are just going to backfire then we're going to have shortages we're going to have rationing we're going to have civil unrest I mean this is going to be ugly when it hits the fan and you know it's dangerous to do this in a backdrop we're so many people are inclined to vote for socialist because that's going to be the type of economic environment where socialism

why because socialist always want to look for a scapegoat who can we blame this on and it's very easy to blame it on the ridge or the businesses are the corporations or the Republicans and and I think that's what's going to happen if if this happens you know sometime over the next few years but if it doesn't happen in Trump's first term there's no way he finishes a second term without this happening no way he calls you I was being heard you in The Joe Rogan podcast who was huge you are amazing what do I do what you tell him to do it I would say things on my podcast for tweet something and the next day I die you know he say something pretty similar red meats but look like I know some of the guys that are close to him you know like Larry Kudlow like Steve Moore Steve Moore pretty well I guess we speak a lot of the same things

used to be on Larry show a lot back in the day when you used to have his his his show on CNBC so I know some of these guys I don't laugh or I in 2006 when he said everything was great and you know there's no no recession coming and I need that me a penny and Welch. It mean if you can't even see that everything was great and there was nothing to worry about it we work it have a major decline it and then he won't even pay up you know but let me ask you this if he calls you up and says what do I do what does he do this point look it would have been better as I said had he come clean right away... What did you do now now he's got to have to come back and say look I just listen to The Joe Rogan podcast I listen to Peter Schiff and financial genius

give me the so clouded by the bubble that's you know when you get a lot of people that can see think the reason I saw the price is coming you know it wasn't that I was so smart I just think it's clearly everybody else is so he's got to come clean now and tell the truth about how screwed up this country is after years of big government and after years of a central bank that is inflated bubble after bubble as it look this is what we need to do what really make America great again I said we're going to have to shrink government I know I said I wasn't going to cut entitlements but we got to do that we can't afford to make these commitments we can't pay all the Social Security benefits that have been promised because if we try we're going to destroy the dollar because if the government tries to give everybody a social security check they can't do it without destroying the dollar so we've got it we got to shrink the program we got a means-tested program we got to make a lot smaller we got to end it for the future you know we can't have this intergenerational Ponzi scheme

I bet you it was a mistake to create a time in a lot nobody wants to admit that Social Security was a mistake that Medicare was a mistake you know what is that one day it's not going to work doesn't work that its name sorry but did the ideas that you're paying into it now if your 30 year old person paying into it now this is strong odds you're not going to get it refunded retirement program it's not like your Social Security money is putting a real trust fund somewhere invested and when you retire you're going to get payments out of this trust fund your money is going to the people that are spending it right now yeah it's so when it first started Social Security started a long time ago the first woman that got a check was like I'm a fuller or something with your name and she live to be a hundred years old and for her social security was with a windfall cuz you paid into it for a couple of years she collected for like 40 years and when Phil Security started it was a 1% tax on payroll and it was only a small amount in the employer paid one

at which of course comes from the employee that's part of the fraud right I'm in the employee pays the whole thing doesn't matter if the if it's considered the employer but it didn't show up shopping for people weren't even included I think we didn't include self-employed until like the 50's great just figured if you're smart enough to run your own business while you're smart enough to save your own retirement but the government try to say look some Americans are not smart enough to say which I think was a mistake the government didn't save anything just what the government did is the minute they got the money they spent it but before they spend it they write themselves and I owe you and they called a trust fund see what happens is the government collects the social Social Security money and then they spend the money on the current employees but what they don't spend they think they stay put do the so-called trust fund but then they borrow it right out and they write themselves and I owe you call the Government Bond but if the government owns its own Bond that's not an asset cuz they keep saying all the trust funds are going to be solvent and told her you're 24

or something like that but they're not insulted right now because there's nothing in them because of the government has to tap the trust fund it has to sell bond to the public which is what it would do if there was no trust what if you wrote me a check for $10,000 right and I had that check that would be an asset to me if I had your check for $10,000 if you wrote yourself a check for $10,000 to you at the same time you owe yourself the money to me if the government owns its own Bond it's not an ass that at all it's a liability and assets from day one I mean Roosevelt's oldest to the American public what's a card that's why they call it Social Security contributions that they call it you're paying premiums it's a truck they tried to make it sound like legitimate insurance but it was never legit Insurance because that would actually been unconstitutional

reason that the Supreme Court said so security was constitutional was because it wasn't legit what they said it was like welfare program want you to bring back. Because we're getting off track I really want you say what would you tell them to do this or eliminate them start eliminating lots of government agencies and departments whether it's education energy they're all sorts of government departments we need to abolish we need to cut back on government spending we need what kind of noise does it make government is lean as possible because we're broke government is like you it's like if you're trying to run a marathon you got a 50 lb on your back you're not going to run very fast the secret is to take some of that you know wait out of the pack so you think that limiting government and getting rid of all the spending is going to allow the economy to be more powerful

when your gym they come in and the real fat and their there they're out of weight they're overweight have a lousy diet right and you said okay I got a plan for you that's going to get you into shape in the short run they're not going to like that plan they can't eat their favorite foods they're going to be getting up early in training and so their lifestyle it's not going to be as enjoyable to them it's going to be all this pain right in order do the right thing I'm not saying there's a Panacea rights in order to fix the economy we are going to have to go through a recession a very bad one in order to reallocate resources to where they need to be to let the free-market reallocate them so when the government gets out of the way and start shrinking a lot of people who are getting government checks are not going to get those checks a lot of people who are government jobs are not going to have jobs they're going to have to get productive jobs in the private sector so there's going to be some transition there we're going also have to get rid of a lot of regulations that make it so difficult to mix

the hire people and train people so we have to downsize government and again I said we have to let interest rates go up for the people will save so that entrepreneurs can get the capital in need to make the investment to make the tools that their workers need to be more productive but then we have to let acid prices fall we have to stop trying to create this phone any wealth effect see that the Central Bank think what we need is to make the stock market go up and then people will think they're rich to go out and spend money stocks are not supposed to be the stock price of appreciation is not supposed to be the source of wealth it's companies becoming more valuable because they're learning more and producing more that's supposed to make the price go up there trying to put the cart before the horse they think that just making the stock market go up is going to make us Richard it died so in your opinion deregulation smaller business all these things are going to help letting people know that the guy that we are fucked and that this is this this all the economy is doing great thing as a ruse not working have to start working they got to start doing stuff

got to get people off of you know the Dole and an end starting to start pulling it like everybody else was keeping them from getting jobs in the first place I mean they make it hard for you to get a job with rules and regulations and taxes and then they reward you for not working with all sorts of subsidies and programs I mean and then there's also a fear of automation automation is going to limited a large amount of jobs including driving jobs the Industrial Revolution but even before that there was automation me look at people on the farms look at how many people don't work on farms now because we have machines right by people worried about Universal basic income that this is the only solution for automation automation makes us wealthier as a society because it eliminates work work is not an ends in and of itself work as a means to

nobody wants to work they want the fruits of the labor and so to the extent that we can have a machine do the work for us that frees us up to do other things so you know if we have autonomous cars and I don't have to drive anymore no pay Trump won't have that problem being sued for overtime by his ex driver cuz he won't need somebody to drive but imagine if everybody had a self-driving car think of all the free time now that you have you can work while you're in your car or you can you can do either you can watch a movie while you're in the car I mean you won't be driving a long trip because you'll be able to be productive while you're in there in that car and he knows there's a lot of things that will happen yes will eliminate truck driver jobs but it will have safer streets and and and and and it'll be less expensive to transport Goods but that freeze up that worker to do something else with their time Universal basic income is the only solution that isn't appealing to you because you think they really the real solutions not to give them free

the real solution is for them to find something else to do that contribute to society discourage people from working did see the highest marginal tax rate that anybody pays is going from welfare to work because not only do you pay the taxes on what you earn but you lose all the benefits because you not have a job so welfare and the welfare state created a huge incentive for people not to work so at least the argument would Universal income is look we're not going to take away your welfare if you get a job so if you improve your lot in life if you go out there and you become productive we're not going to punish you by by taking away your welfare the better answer is let's not punish you for working let's get rid of the income tax let's not packs labor let's get rid of the payroll tax to make it more ever see getting rid of the income tax in this country

since the 19 watt 19 thirties forties when does introduced in 1913 but nobody really paid it until 1943 when we had the the withholding tax but we could get rid of the income tax really think that would ever fly in this country are so addicted to that money back in 1900 government was only like 5% of the GNP all level state federal and local now it's like 40% so we can't have no income tax and no payroll tax if we want to have all this government but if you're willing to do without the government that we don't need the taxes but it said most of this government is ineffective and I'm not want to minimize what would you want to keep the power maintain streets things on maintenance facilities on the federal level

does the federal government should not be involved in education at all at all in fact if you look at the Constitution to get the word education is not mention the world they knew what they were so what so how do you find education involved primarily with external matters so we should have a National Defense I think it should be much smaller I think that we spend more money than we need on the military I think we could we can have a defensive military for a fraction of what we currently pay but I think the federal government should be predominately focused on external matters to the extent that we're going to have public education or government spending money on the schools let them do it on a state-level or local up let me know it should not be done at the federal level those are issues that can be managed by states by state tax

if the what happens now is everybody sends all this money to the federal government and then they beg to get some of it back where they have stayed at work you send money out and you try to get some of it back just don't send it to Washington the first place to look at the five richest counties in America they were all around Washington DC, need for the Supreme Court talk about but nobody really talks about the role of the Constitution there is like all are we going to repeal Roe versus Wade is it the most important thing is whether or not you know there's this Federal abortion but the important part of the Constitution is that it is the law that applies to the government it limits the power of government by Thomas Jefferson said that we will bind up the cot the government's in the chains of the Constitution but at this point the government does whatever it wants the government is not a biting by the law I mean they try to pretend that we're interpreting the Constitution

it's not up for interpretation of the Constitution is not written in Chinese you have to interpret it but the government likes to talk about interpreting the Constitution because they want to ignore it they want to do all sorts of things that are not authorized by the Constitution the Constitution only authorizes a few powers to the federal government are enumerated there in the Constitution and at the Constitution doesn't say the government can do it it can't do it and almost everything the government does today is unconstitutional is doing sup that has no concept of Thorin to do and that's what we need a supreme court for me a lot of people don't like Congress very low opinion of Congress lot of people don't necessarily like the president but everybody loves the Judiciary we have three branches of government the executive the legislative and the Judiciary and everybody likes you just right but I think it's the Judiciary that is sold us out the most because they have let the government get away with murder they are not enforcing the law on the government and I'm making the government abide by the wall meets the laws that apply to me and you

not for interpretation they mean what they say right but somehow the laws that apply the government yeah well they could be interpreted which means they could be ignore right they want to say all the Constitution is a living breathing document so that he can change with the times is a way of saying it means nothing so we need to reclaim the Republic by actually is enforcing the government to live by the Constitution that's one of the things Trump can do is say look we are going to restore constitutional government to this Republic we are going to make sure the government only does what it's authorized to do the Constitution and the smaller you make government the free or you make people right that's what it's all about I said earlier the podcast about this whole idea about group privilege the more privileges that you give groups if you are rights that you have for individual and the more government you have the less free we are so that's actually the real definition of freedom is freedom from government and so the smaller your Garmin the less they regulate your activity the less money they take from you

the more freedom you have and the more free we are the more freely we can interact with one another the more prosperous were going to be now second step what is a person like me do to stop or to mitigate the effects this bubble that's going to crash the only thing you can do personally this politically there's really very little we can do I mean it's going to hit the fan right I mean there's nothing we can do about that I mean talking to call me down to the White House and then he will after this I love you and you know sometimes you talk shit about me or after the Access Hollywood stuff I was on podcast I was I defended him when nobody would defend him for that because I understood those comments and and what he was doing I like all there but he wasn't saying that for public consumption he was saying something funny and my friends have said horrible things to me and I've laughed

sitting next to you didn't he wasn't like taking a stand he's my broadcast next to a guy who is a crazy person who is literally known for being a crazy person saying outrageous stuff tagline is your fire you know you know some of the stuff that women say about guys when they're just a percent what I am hoping for like me after it collapses that if we can at least come out there was an alternative version of what happened like after the financial crisis happen and I was one of the few people saying it's not it's it wasn't the banks it wasn't greed it was government was the Federal Reserve it was Fannie Mae and Freddie Mac or the problem but the government got away with blaming capitalism and making government bigger what we need to do and what you can do with your audience which is much bigger than mine is what it hits

fan again to put the blame where it belongs on government as a government did this to us it's not an accident that we have all this government and we have all these problems and his government interference in capitalism at the problem not capitalism itself at the government stayed out it would be working beautifully so we don't want to throw the baby out with the bathwater we want to preserve the baby the government's the bathwater so what you can do with your nose so box is get people to understand the real source that what you can do now what your audience can do now to protect themselves so they don't go broke and I think that to the extent that you don't go broke you're in a better position to help the economy and help the country if you have resources right if your I said if you know if a ship is going to sink and I can get you off the ship on a Lifeboat then when the ship goes down you might be able to help some of the people you out of the water if you're not drowning yourself so what you could do is protect your finances if you got a large portfolio like what I do with my own money

annoyed by people I manage money at your Pacific Asset Management my broker-dealer cursive capital is I invest in countries that I think are in relatively better shape whether it's Switzerland and her Singapore you don't worry no New Zealand New Zealand just elected as strong enough but I think they can withstand that they made enough progress yes other countries out there that are not nearly as screwed up nobody is perfect right nobody is as good as America used to be but there a lot of countries that are much better than we are now and they have assets that you can own that are not bubbles you can get good dividends you can protect yourself from this coming stock market crash dollar crash by market crashed so you can reserve your wealth and it's the dollar goes down so if you went through the 1970s and you had your Ford Focus a 1972 stock market went way down but the dollar went down even more the dollar lost two thirds of its value the reason oil prices went up tenfold in the 70s the reason gold went from $35 an hour

850 was because the dollar collapse will the dollars going to have a bigger collapse this time than it did last time right this time I think the dollar is going to lose its status as the reserve currency last time I didn't lose the stats just got marked down because we went off the gold standard but it didn't get knocked out I think the next one is going to be a knockout so you got to invest your money outside the US to preserve your wealth when everybody else is going broke and you got to own real money you got to own gold you own physical gold right what you can buy in a larger quantities of gold through shift gold you know I got you know very low prices you got to be careful out there there are a lot of companies that will try to your bait and switch it into collectible coins rare coins with these huge markups 20-30 40% markup sometimes a hundred percent markup stay away from that you know you just want to buy bullion and you want to buy it as cheap as you can over spots the only time you want to pay a little bit more is to get some jewelry cuz you want to wear it then it's probably worth it to pay a little extra if you want to go buy something at you

where you at but so you can do that I think the socks that I can about the most if you really want to potentially make a lot of money on this crisis it'll be gold stocks gold bullion is not about getting rich it's about staying Rich it's about not getting poor buying physical gold is about preserving the well that you have but I think that these gold mining companies when the price of gold goes up I think some of these stocks go up 10 20 times or more so if you're if you know you can tolerate the risk cuz if I'm wrong you know these stocks to go way down but if I'm right there going to go way up so way that you can really profit from what's going to happen is by having some money invested in these gold mining companies and then we have a dollar crisis in the price of gold goes way up you stocks can can go ballistic

the voice of Doom in the voice of reason all in one man Peter Schiff ladies and gentleman that was awesome man hey how long we've been talking for 3 hours 3 hours already by my pleasure

thank you everybody for tuna to the podcast and thank you to our sponsors thank you to Lenovo the very laptop I'm typing on right there at you hear that sound that's my motherfuking laptop go to Lenovo and you can take part in there Black Friday in July sale lenovo's biggest Savings of the summer on premium laptops and devices deals are good for one week only from July 16th to July 23rd go there and you can save a shitload of money go to lenovo.com deals

thank you also to Teeter the very Teeter that I have I may have bought that too just like I bought this laptop I bought a teeter inversion table I've had one for years this is my second Teeter inversion table I believe in them I think they're for the Fantastic way to decompress your back and help get rid of pain and they're offering an amazing offer for listeners this podcast for limited time only you can get the Teeter inversion table with bonus accessories and a free pair of gravity boots so that you can invert at home or take the boots with you to the gym to get this deal which is a savings of over $148 you got to go to teeter.com Rogan you'll also get free shipping a 60-day money-back guarantee and free returns so there's absolutely no risk for you to try it out remember you can only get the Teeter with the bonus accessories and a free pair of gravity boots by going to teeter.com Rogan that's

GE ter.com Rogan brought to you by the Bay by the cash out folks the number one ranked app in finance and you download it for free for the App Store or Google Play Store and use the reward code Joe Rogan all one word you'll receive $5 in the cash app will send $5 to Justin wrens fight for the Forgotten charity alright thank you thank you for 2 and then I appreciate you people and that's it bye bye