Peter Schiff

00:06boom and we're live Peter Schiff how are you sir I am good I am good thanks for having me back thanks for coming back yeah it's been three years it has been a while you've grown a lot I'm so impressed with what's happened to your podcast your popularity and thanks man thank you hopefully a little that trickles down to me I'm sure well you look good dude you look healthy you look vibrant well you know I got a little bit of beard going I've been living in Puerto Rico yeah we were talking about that off air tell me about that like what what prompted that decision well you know I live in Connecticut and unlike Southern California where you are fortunate enough to still live I lived here for a long time years and years ago but we have seasons and one of them is winter and it tends to be very long and it normally kind of you know kind of moves into the fall in the spring a bit and so

00:56I had been thinking for years about kind of splitting my time between Florida and Connecticut I love New England in the summer it's beautiful this time of year and I like the beginning of fall you know where the leaves are still on the trees and it's not that cold and it's pretty and you know spring is nice too but yeah I can forget all the winters so I was gonna move to Florida until I found out about Puerto Rico and I found out about this actually cuz I read an article interviewing John Paulson and Austin was John Paul's John Paulson billionaire hedge fund guy made a lot more money than me shorting subprime I did the same trade I just didn't make as much money as he did cuz I didn't start out with nearly as much money but in any event but but but he made a lot of money shorting subprime and he's a hedge fund guy and he was investing down in Puerto Rico and I was like what's he doing

01:44what's what's going on down there and I found out and I'd never known this that Puerto Rico as a u.s. territory Americans who live in Puerto Rico don't have to pay federal income taxes on the money they earn from Puerto Rico which would include any of your capital gains on your investments and I'm like what a minute I mean all I have to do is move to Puerto Rico I don't to pay any federal income taxes because anybody can move there you don't need a you know work visa to pick up and move there just like moving to another all right and so the minute you moved there you don't to pay federal income taxes but Puerto Rico has its own taxes so you have to pay the puerto rico taxes instead and up until recently I mean Puerto Rico's income tax I think tops out at 30 percent it's still cheaper than the US and there's no state income taxes that's all you've got right is

02:33that the 30 percent but a few years ago Puerto Rico got smart and they said well how do we attract businessman entrepreneurs to move to Puerto Rico if they're not already here well let's just drop that income tax down and so they basically created these two laws act 29th 22 and act 22 is for individuals and it says hey if you move to Puerto Rico you have zero capital gains tax on any capital gains and you have zero taxes on any interest and dividends that you earn locally and then they passed another act which is act 20 and they said hey if you open up a business here you have a company you're gonna pay a four percent corporate tax to Puerto Rico and then you can pass on all the profits in dividends to yourself tax-free no tax in Puerto Rico no tax in the United States and you know that's that's a great deal that seems to be worth a tremendous amount of money it is I mean it depends

03:26on but you you effectively double your income by moving there practically so because you're not you know you're not you know splitting your income with the government right and and and and so I checked it out when I heard out about for heard about this first it's like Puerto Rico do you know do I really want to live there you know I'm thinking West Side Story I don't know but you know it's beautiful I mean I live in a town called Dorado beach and it's just it's very very nice the the the weather and just the tropical location and there's a lot of good people there a lot of people have been moving there obviously I'm not the first person to take advantage of this and so there are a lot of people that have come from California to get out of you know California taxes or the Northeast the Midwest you know plus when you come from the Midwest or the Northeast you also you know help

04:15yourself get out of the cold weather California it's pretty much all a tax thing I mean no one's leaving Southern California other than really taxes because you've got such great weather here but I I we enjoy living there my wife enjoys it she's met a lot of people I've met a lot of people and you know the crazy thing is you know you have this movement now in Puerto Rico where they want to become a state which is ridiculous because if they became a state all the problems they have would be that much worse because were taco is in trouble today despite the fact that you don't have to pay federal income taxes there I mean that what happened was the Puerto Rican government is which was very socialist they borrowed a lot of money and they you know they they spent a lot of money to get elected and you know a lot of people in Puerto Rico work for the government and a lot of

05:00people are on welfare food stamps and stuff like that but big government is what destroyed the Puerto Rican economy and they and they borrowed a lot of money but if on top of that Puerto Rican residents that actually had jobs how to pay the federal income tax you know it's not just the federal income tax it doesn't apply down there it's the Obamacare tax you know people wanted Obamacare repeal if you move the Puerto Rico you've repealed it for yourself because the taxes don't apply down there they don't even have to pay the federal gas tax so without all those taxes they're still in trouble so can you imagine how much worse it would be if they had all these taxes if all of a sudden the IRS descended on on Puerto Rico like an infestation of you know mosquitoes and me worse than the Zika virus down there to have the IRS so but you know there's people they've told a

05:44lot of people hey if we become a state you'll get more welfare I oh so vote to become a state goes to me but but what Puerto Rico the last thing they need is a more more incentives to be on welfare right they need freedom they need less government they need to default on a lot of this debt and a lot of the people that own the bonds unfortunately have to lose some money but I think that as more and more people move to Puerto Rico I've got two businesses down there now I'm hiring people I'm renting space I bought a lot of property down there you know more and more people like me as people come to Puerto Rico the economy is going to improve it's gonna get better and but if they become a state they're gonna destroy all that potentially they have to exploit the fact that Puerto Rico can offer such a great advantage to a businessman somebody who wants to create

06:29a company employ people provide goods and services they can do it in Puerto Rico on a much favorable basis relative to anywhere in the continent States so this is a recent thing for you how long you be down there for well I moved my asset management company so I have a company called your Pacific asset management and I moved that company from Southern California I was based in Newport Beach with that business and I moved it sis to San Juan I think in 2013 and then I moved it to Dorado so I have my office there and I moved all my portfolio managers they all moved from California to Puerto Rico that's gonna be a tough sell you know they love it down there but was it difficult to convince people to pack up to which essentially another country it's not really but it kind of it's America but yeah technically it's not like Guam like that kind of a situation

07:17yeah well it's the same status but I've never been to Guam but I mean you do feel it does feel a little bit like a foreign country went because English is the second language everybody is speaking Spanish so in a way you know but all you look around it's all the same restaurants it's all the same stores so it's American in in stores all the mall you know the same malls and ever so there's a lot of X so not really expats because they're actually still in America there yeah you do not renounce your citizenship when you move to Puerto Rico you do not have to pay an exit tax I see you still travel on on an on a u.s. passport everybody that lives there is an American so it's like a sweeter deal than move in Hawaii well Hawaii you got high taxes you're still paying federal income taxes but your paradise yeah plus you're paying the state income taxes I know Hawaii so

08:03but you know it my guys wanted to move there because it basically almost meant that their income was gonna double like pretty much overnight because they can participate in these tax breaks but you know my one of my guys is married has some kids and you know they really like it my single employees have a few young guys you know you know good shape working out you know young portfolio managers but they've you know they quickly got Puerto Rican girlfriends you know if they've got a job down there that's a big plus because most of the Puerto Rican guys and not if you know this but I think five of the Miss Universe is some kind of Puerto Rico I'm in such a small little island country but they got some beautiful women down there in Puerto Rico it sounds like you're a salesperson for Puerto Rico I you should I've said so many people down there a lot of people have moved there

08:51because of me I run into people all the time be on the beach at the pool help you're the reason that I'm here cuz they heard about it no but but look it's it's a good deal and you know III would love to see Puerto Rico succeed as a mecca of free market capitalism right now you know it's a poster child for the failures with socialism because they it's the Socialists that killed Puerto Rico just like they're killing a lot of major cities in the United States but if we get more entrepreneurs more business people coming to Puerto Rico you know that is what Puerto Rico needs they don't need to be a state they don't need the IRS they don't need more government they need the opposite of that so you learn in Spanish are you just so well I mean with you but they're all American Americans but I mean I speak English I mean I took high school Spanish so you know if I go through a drive-thru you

09:40know I gotta try to use my Spanish because a lot of times they don't speak but and no one if you talk to someone from the police or the fire department of those guys beginning English but most of the younger people they've learned English and where I live it's everybody speaks English I mean nobody addresses me once I get out of you know the gates of the Ritz you know Ritz Carlton you know I go out and you know into a movie theater they're you know they're speaking Spanish and if I say do you speak English then they'll talk but where I live everybody addresses everybody in English so in that respect you know you're still there so you live in like a gated area that's a part of the Ritz Carlton yeah it's a gated community but it's very large you know we have a lot of golf course so I think three or four golf courses are on the beach and there's a lot of different places

10:22is there any resentment from the locals not that I can feel I mean because I mean I know some of the locals could feel hey these guys are coming in here they're not paying a lot of taxes but I pay a lot of taxes as a just a raw number it's not a big percentage of what I earn but it's a big number relative to what other people might be paying but you know I'm doing all I'm hiring people as I said I rented office space I mean I bought a house I bought a condo I'm going out so I mean they benefit they like having if you're if you like having people doing stuff and inside I don't I don't I don't see it at all no if it becomes a state status if it changes status will you move I don't know we'll see I might have to I mean it might not I mean it won't be nearly as lucrative right see here's gonna be the problem if they ever became a state see people that live there pay a 30% income

11:09tax now so you know for to not not people like me but the people that were already there so kind of like in California you have ten thirteen percent income tax but imagine if you had to pay a thirty percent local tax and the federal income tax for that I mean they have a thirteen percent sales tax now if they have a higher sales tax so they have if they became a state they would be by far the highest tax state in the United States they'd be a disaster right now they have the lowest taxes in the United States so why would you want to go from having the lowest taxes to having the highest taxes it'd be it'd be suicide to become a state yeah so they would have their local taxes and then on top of that they would have federal tax yes the local taxes are fairly high in terms of like a local state yes much higher right but then on top of that they don't have federal taxes right and

11:57you know the other thing is Puerto Rico has a lot of debt I mentioned that right but on a per capita basis they actually have a lot less debt then America does I mean your share of the national debt right is much bigger than the average Puerto Ricans share of the Puerto Rico debt because when you live in California not only are you responsible for the state's debt you're responsible for the national debt the people in Puerto Rico are not responsible for the national debt so if they actually became a state they would be in worse shape than they are now they would actually have more debt all right so you know it's like it'd be like buying a ticket on the Titanic after you've already you know it hit the iceberg you still want to buy tickets so hopefully this is all a bunch of politics and it won't become it won't become a state and it'll just continue you know they'll default on a lot of

12:44debt hopefully they'll privatize a lot of things they'll shrink the government and more and more people like me will come and start creating businesses and hiring people and you know five ten years from now maybe it'll be the wealthiest part of the United States so correct me if I'm wrong but the two possibilities are it becomes a state and they get more welfare they get more essentially more aid more money yes or it stays where it is and more people like you have an incentive to go there and then entrepreneurs open up businesses and then there's more opportunities and then the general wealth of the island grows and that it helps people just by two of more profit yeah you got it becoming a state just means a bigger welfare state it means a greater incentive not to work and a bigger punishment if you work because the taxes on people that work will go sky-high you

13:35know so that's gonna be a huge problem if you know so good the probably the appeal of being a state is that so many people don't work but you know one thing that we could do to help Puerto Rico is get rid of the minimum wage because they're stuck with our minimum wage which is a disaster because the the average income the average wage in Puerto Rico is about half of what it is in the United States and so the minimum wage of 725 is like having a minimum wage of $15 an hour and if you're one of those people that likes a $15 minimum wage look at how high the unemployment is down there because you you can't you know people can't get jobs at these at these wages you know the best example to of America destroying one of its possessions with the minimum wage was American Samoa I love you ever read this but a few years ago Congress applied the minimum wage to all the territories our

14:23minimum wage which included American Samoa and in American Samoa the biggest employers on the island were these tuna Cantor's and so chicken you know chicken of the sea or Starkist and so all these people worked in these factories canning the tuna and they worked in in in American Samoa well when the minimum wage was passed it it made the island uncompetitive and so the tuna factories closed down and fired everybody and then so all of a sudden there was like 30% unemployment the island went into a massive depression and they still haven't come out of it I mean we destroyed them we destroyed all their jobs and the the you know the American Samoa didn't want the minimum wage but you know American politicians don't give a damn and all they care about is feeling good about themselves not about the consequences of what they do and so they you know they they impose

15:11that minimum wage and it was like declaring war well it had a lot of damage in Puerto Rico just not as much as it did in American Samoa but if we can get rid of that minimum wage in Puerto Rico then there'd be a lot more employment opportunities for younger unskilled people they'd have the opportunity to you know climb up the job ladder to get some skills so they can earn more money in the future but right now they're just permanently unemployed so that so we could get rid of the minimum wage also there's the Jones Act which just really really hurts Puerto Rico and what that Jones Act that says is that any ship right any that that's going to America they can't stop in Puerto Rico drop a few things off and then continue on to the United States they have to have to go all the way to the United States unload their cargo that's going to Puerto Rico put it on

15:58the US flag ship with a US crew and then send it back to Puerto Rico and it cost a fortune all right so that's one of the reasons that they're tourism is not that competitive there because all the other Caribbean islands can get cheap stuff dropped off on boats but you know we have to wait for stuff to come on a Jones Act boat and so it what was the incentive to pass the Jones Act it's for the union's the Maritime Union the Merchant Marine to try to because you know American ships are uncompetitive like if you ever go on a cruise don't you go on a cruise but none of these cruise ships are flagged in the United States and none of the cruise are American that's because if you had to use an American crew with our laws nobody could afford the cruise it would be too expensive the only way that you can have a cruise line that anybody can afford the travel on is if you flag it

16:46in some other country well so because the wages are just off the charts but that Jones Act means if people in Puerto Rico you know whatever they're gonna buy whatever they're gonna consume in order to bring it to that island you know they're gonna have to bring it on on a US flag ship now it that's a problem for Hawaii too but the people in Hawaii are much richer on average and the people in Puerto Rico so the poorer you are the more you're affected by by higher food costs or higher you know cost of everything so it's you know you have a lot of these you know liberal politicians they refuse to get rid of these laws but that would would very much help Puerto Rico just more free markets because they they have no control over that federal minimum wage where that or that Jones Act so you don't think there should be any minimum wage at all no no no none both so

17:31someone working for a dollar an hour doesn't bother you well I mean it's better than working for zero I mean people think that you know they want to impose their morals and say well it's not right for somebody to work for a dollar an hour well you know people make rational decisions right so if somebody is accepting a dollar an hour and that must mean that nobody offered them a dollar fifty nobody offered them two dollars I mean this is a competitive market I mean I know you have an employee over here I mean could you pay this guy a dollar an hour what do you work for you I don't think so yeah what guess yeah because he could get more but he's he's educated and skilled and he's an engineer and of course right but it's very difficult for people to get that sort of an education particularly in Puerto Rico thought of as a third world environment sorry it's not third world but let's say some

18:20kitten came in here that had no experience whatsoever but he wanted to learn he wanted to just get you coffee and just sit around and be around you he's not that productive yeah they use interns right a lot of radio stations do that and they don't pay them anything I know that's that's zero dollars and I can't do that well then yeah but maybe you pay him five dollars now whatever it is but right people are gonna accept a job that's the best one they can get and so if somebody is working for $1 an hour or $2 an hour by default I know that they couldn't find a higher job than that and the reason is because they don't have a lot of skills but if you don't have a lot of skills the best thing you can do is get a job so you can get some skills that's where you learn skills you get more skills you know there are people that pay to get skills right if you go to school you actually

19:03have to pay tuition if I'm getting paid $1 an hour while I learn something that has value that's better you have people now borrowing money to learn a skill people graduate college and they're in debt it's not a way that's a weird argument right because you're assuming that they're gonna get a skill and they might just be handling packages and picking them up and moving to another location even as a whole well even that's like show up on time be responsible for discipline there's a lot of stuff that you learn when you have a job but the problem with the minimum wage is that the minimum wage basically hurts the very people that it's intended to help because the minimum wage basically says if you are a worker if you cannot convince an employer to pay you seven twenty five or ten dollars an hour whatever the minimum wage is then you cannot accept that job see it doesn't hurt the employer it

19:53hurts the employee because it limits his options it limits his ability to sell his labor for the highest price that he can and it limits his access to the job market it said you know you can't get on that ladder you know you remove the lower rungs and so I can't climb up because of this arbitrary minimum wage because when you pass them in a wage you're not gonna force an employer right if I'm an employer and there's a minimum wage of $10 an hour and somebody comes to me and they can deliver $5 an hour worth of productivity meaning if I hire that person that will benefit me by five dollars an hour I'm not gonna pay them $10 an hour because then I lose $5 an hour the only way I'm gonna hire somebody who's gonna give me $5 an hour worth of productivity is if I can buy them if I can you know hire them for less than $5 an hour so I can make a profit so it just it's just a floor it's

20:46like if you cannot deliver enough productivity of whatever that minimum wages then you can't get a job and so it's basically making it illegal for people to work it is the stupidest law that anybody has ever conceived it should be obliterated I mean there are some countries like Singapore does not have a minimum wage and you know the average income in Singapore is higher than it is here per capita there's a lot more millionaires there I mean people have no problem we didn't always have a minimum wage in the United States I mean this is a creation of government and you know but the the initial minimum wages if you want to actually go to the origins of minimum wage in the United States it was about trying to prevent employers from hiring the Chinese or hiring blacks they were trying to force the minimum wage as a way to create unemployment it wasn't there wasn't a a good motivation but yes

21:35when they try to sell it to the voters oh it was all about we don't want people to be exploited but you know it's not exploitation if people voluntarily accept a job because it's the best job they can find the person who's offering the best job is not exploiting them they're giving them an opportunity and if you're denied an opportunity I mean there are a lot of people oh great you know they're gonna get the minimum wage up to $15 an hour well what good is it being unemployed at $15 an hour it's better to be employed at $5 an hour than unemployed at 15 because being unemployed means you make nothing all right we're devil's advocate would be that if you can't afford to pay someone $15 an hour then you probably shouldn't have employees in the first place your business doesn't function that well there are plenty cents no because there are plenty of jobs where you have

22:21entry-level positions I mean if you think that there should be no entry-level jobs I mean you go back to the days of full service gas stations right back in the day when you know you didn't have to pump your own gas till the case in New Jersey and a few other states yeah New Jersey you know they mandate it but you still don't get the level of service I mean if you've meld into a gas station 40 years ago not only did they pump your gas but they checked under your hood they used to do it tires your your you know they they watched your windows you know they did all sorts of things you know with your car they didn't make very much money they lived off a tips by and large it was the minimum wage that eliminated almost all those jobs it's a minimum wage that is the reason that we have you know people self so much self-serve but what happened a lot of these people

23:09these kids that worked in filling stations became mechanics because all these filling stations had a mechanic there and and they they learned auto mechanics and a lot of them went on to own their own gas stations but of course a lot of them just this was their work experience that formed the basis for the rest of their life a lot of young kids had these jobs summer jobs and so there's nothing wrong with entry-level employment there's nothing wrong with people learning the responsibilities of having a job of showing up of customer service of salesmen my first jobs were all sales I was selling subscriptions door-to-door I was telephone sales of this Z Channel in California I sold I was knocking on doors selling cable television I I worked in a shoe store selling shoes I mean hustler yeah but you were talking about you as a young man right yes I'll think of the minimum wage is applied to

23:59adults adults that have to take care of children that I have to well a roof over the head and food on the table and you're saying that that they shouldn't be having those jobs well by the time you are an adult with kids you should have accumulated the skills to earn a lot more than a minimum wage see that's the argument when people say hey you can't afford a family you can't support a family on the minimum wage of course you shouldn't even be trying to support a family if you can only earn the minimum wage you shouldn't have a family you you should realize hey I can't afford a family yet let me acquire the skills before I start fathering children right and getting married let me make sure I can support myself I mean a lot of people who are having the minimum wage they're living at home they're you know they don't need to pay the rent they're living rent-free

24:44what they need is a job they need maybe gas money get some money so I can take a girl out on the date but I gotta I gotta get some work experience I got to get out there I got to know what it's like to work I got to see you know I got to live in the real world and that's what used to happen I mean you don't have all these summer jobs anymore kids don't have the opportunity because the minimum wage has already priced them out a lot of older people now are taking those those jobs and so the the employment opportunities aren't there but when you just raise them in a wage all you're doing is raising the bar where you can get your job you're not helping people now there's always gonna be some people that yeah there's gonna be somebody who will make a little bit more because of the minimum wage there's gonna be those people there's gonna be some winners but you're gonna have lots

25:25of people that make nothing because the minimum wage and then of course because you're driving up the cost of labor prices are going up and so who has affected the most by higher prices poor people people who are working on the minimum wage and not only that you end up with less quality I mean you know I hate it when you know I call up a company and I'm just in voicemail hell and I'm going from when I would like a real person to deal with but you know then with the minimum wage those jobs don't exist there's so many jobs that have been automated out of existence we're not automated shipped overseas where there isn't any minimum tap shoes I mean that - yeah you end up with if you actually get a real person there in India right right but we have all these people in America who aren't working why can't they do those jobs yes you're not gonna be able to support a family on

26:10those jobs but before you even get a family you can have that job and then maybe you know five or ten years later you'll work your way up the ladder you'll get a skill and then you can support a family but nobody is supposed to be able to support a family and if you try to tell an employer hey you got it you got to pay your fry cook enough money to support a family you can't do that there's not enough productivity cooking french fries you can't support a family family if all you can do is cook a french fry you need to learn how to do something else before you can support a family and you can't you can't put that on the employer now when you say that Singapore as a higher average income yes is that be cutting no minimum wage is that because there's a shitload of billionaires that have moved to Singapore because they don't have a minimum wage and because they're getting

26:53sport no wait lower-class people or people that don't make much money the the millionaires and billionaires don't even even affected by the minimum wage what you'd have to look at is the rate of unemployment which is rates in Singapore yes a sentence for very rich people to move there and doesn't that jack up the minimum wage or not the minimum wage rather the average income yeah well the fact that you have entrepreneurs that are succeeding in Singapore because they have small government and low taxes means that there's a lot of competition for workers and so that's what bids up wages right competition I mean I've got no problem with a vibrant market bidding up wages you just don't want the government to try to artificially force wages above their productivity right because it's ultimately your productivity that determines your wages you mentioned that

27:38you know your employee here he has a lot of adds a lot of value because of his knowledge because of his person's good look at look at him handsome well that doesn't that doesn't help me but but we're laughing but there are a lot of people look there are a lot of people that earn more money because they're good to look at right they're bright people the shoreland or model were Tory Co and they're right believe it Miss Universe right but even people hire receptionist or people hire people in certain positions because they look good and they get paid a little extra for that because that's added value to the customer experience and things like that so but most of us can't live off of our looks we got it we got to have some something else but it's all a function of your productivity you want to earn more you have to produce more do government just can't mandate that

28:22people pay you more than you're worth as far as the productivity that you can deliver because you're just not gonna have a job you're making a ton of sense obviously I'm not a financial wizard like you are what when you start talking about like people making more money for their looks now that would be a hot-button topic in America and people get very upset about it and that you people would say that that's a sexist viewpoint and you're objectifying these women that you have working these positions what would you say to that like a secretary or someone who's a receptionist who's super hot like the year you're objectifying this woman well you know there are a lot of men women men get hired for their looks too I mean it's not just a one-way street it's like you said but look you know people make the most of what they got right uh people say hey it's not fair

29:06why should this what's unfair to the unattractive people but though the unattractive person could be really smart maybe she ends up dumb and ugly well look you know not everybody wins the lottery life right but isn't that the problem with socialism and the idea of we should even out the playing field yes I mean the idea of a competition you're a competition guy right but you know a famous Democrat John Kennedy said that life isn't fair but it's not fair right and he's just trying to bang a lot and you can't you know you can't dwell on the things that you don't have hey I wish I could have been born better-looking I could have been born taller you know you got to make the most it's like playing poker you got to and play it you can have the worst hand and you can win the pot so you know obviously is it easier to win the hand if you got four aces right right but you

29:54know what if you're a bad player you'll win nothing cuz everybody's gonna drop right and so even getting the best hand doesn't necessarily mean you're gonna you're gonna you're gonna play it right but you know it's not I mean if two people if I want to hire somebody and the way they look I believe is going to help me earn more money because I think that having a more attractive person in particularly business his position is gonna somehow lead to greater sales I mean that's really the only reason that you're gonna pay somebody more money if they look good look it on you know I go on fox television or CNBC it's not an accident at all these women interviewing me are pretty hot right I mean unattractive women could read the news and ask me questions just as good as they can but they're hoping and they're betting that more guys like us are gonna tune in to watch a hot chick interview

30:38me then a homely one and they're probably right right because probably lots of homely girls that are applying for these jobs are not getting hired no I agree with you 100% but there's a fascinating thing that's going on today where competition is thought to be and somehow some way shape or form a negative thing and that this kind of competition whether it's cop even capitalism itself is criticized right like there's a lot of people today that are in favor of socialism that's one of the reasons why Bernie Sanders are so attractive is because like hey you people that are not winning this crazy competition out there that don't have any desire we're gonna even out this playing field and those people that are out there kicking ass and taking names we're gonna take some of that money and we're gonna just give it to everybody else yeah that is the appeal of socialism because it appeals to the

31:22lowest common denominator that allows is appeal to ignorance but it appeals to greed because an Envy like oh this person has so much more than me and it's not fair but here's the beauty of competition because this is why we want competition we all want stuff right and and so I want people competing to sell me stuff right I want to have as much as I can as far as consumer goods that's what we all want we want products and services that enhance our lives and the way we get the best products right with the highest quality that deliver the most value at the lowest price is to have lots of competition all kinds of people competing for my business hey I've got some money to spend Oh buy my product buy my product competition is what's make is what makes sure that I get the best thing right you go back to the old Soviet Union and you know there was no competition let's say you wanted

32:16a phone in the Soviet Union in the 1960s well you went on a waiting list and maybe three or four years later if you were lucky enough you had the right connections somebody gave you this big fat black phone you know and and you had one phone and it was very expensive you know that's that's phones undercut under capitalism look at the phones we have I got a phone and I I can take movies with it it's a kids in computer it's a camera I used it to get here with its GPS I mean you think I would have a phone like this if the government was had a monopoly on phones I'm saying learn how to buy any government phone that they were gonna put in my place so we all to say that competition isn't good all the things that we value wouldn't exist if people weren't competing with one another no I'm well I'm a big believer in competition but I one of the weird arguments is happening now is that

33:02competition is bad and it's a very blinders argument and I saw you battle against that argument when you were with Occupy Wall Street when you went down to the park and talk to those people that's how for a lot of these very aggressive very passionate people with a limited amount of understanding about capitalism yourself they had no wonderful arias and it was it was a one full exposing but they were there which was weird right well they were in there they have signs they're screaming they're yelling they're angry but yet yeah and you know very little understanding about the system that they're rallying yeah well one of the reasons I went there and if you haven't seen it you're plenty of YouTube videos of it the log there's one that's like two and a half hours where I'm that's the whole I talked until we ran out of power right I've seen a moment let's say

33:45in about ten videos of you talking to these people but somebody just recently resurrected it made a copy of it and got another two and a half million views just a few months ago so I know people are watching it but you know I went down there because I sympathized with the fact that people are upset and and that I know that the economy is not as productive as it should be I know there's a lot of people that don't have jobs that should have jobs I think that we should have a much more vibrant economy we should have a much higher standard living there should be a lot more opportunity but it's not because we don't have enough government it's because we have too much and it's the problems that we have on Wall Street were not a function of capitalism but a function of the government's failure to allow capitalism and the reason that I was predicting the 2008 financial crisis

34:31and they were calling me Doctor Doom the reason I I knew about the housing bubble in advance and I was able to see the financial crisis coming was because I understood the dynamics at play I understood how the government how the Federal Reserve how their policies were working to inflate these bubbles that I understood the moral hazards and the consequences of what was going on and so when I went down as a kadhi park the point I was trying to make and not even so much the people that were protesting but to the people who I knew would watch the interaction all around the world was to make the point that you were right to be upset but you're you're venting your anger in the wrong direction they were venting they're angry of people at you like you know very successful the quote-unquote once I said capitalism and I was saying look it's the Federal Reserve that is the source

35:15of your problems it's Congress it's the White House it's not the financial district in New York City I mean the free market people in the free market are there to help you right Pete anyone in anyone that has a business all they're trying to do is win your business as a customer they're they're competing to get you to buy things in any thing that you buy right if you choose to buy something if I buy something for 20 bucks I must value what I'm buying more than 20 bucks or I wouldn't make the exchange so to the extent that there's a business out there trying to convince me to buy something that I value more than money that's not gonna hurt me the problem is government government has power government has brute force the government can force me to do things that I don't want to do the government can make my life worse a private business is just gonna make my

36:01life better right because if they're not gonna make my life better I don't do business with them but the government is a different story they can pass laws they can pass taxes they can pass regulations and as it so happens the laws and regulations that they're passing are making people's lives worse and you know the problem wasn't that big banks failed the problem was that they got bailed out don't blame the banks for accepting the bailout I mean what would you do if someone offered to bail you out yeah you'd take the money the problem is the government the government shouldn't have had the power to bail them out in the first place so the real enemy is government and the power that government has we have to take that power away from government and what when you take power away from government you create freedom right that's what freedom is it's absence of government right now

36:46well you say the Federal Reserve and Congress are the real issue what is their incentive to be that issue what is their incentive to not allow the market to thrive and to like you're saying that they're the reason why there aren't more opportunities and there aren't more people working what what are what is what if what is what do they have to gain well politician doing politicians have power right they want they want to get elected and they want all the perks that come with elected office most people that are in government live pretty good lives there's a reason to do it right it's not do they want to serve the people will help the people they want a personal benefit yeah that's nonsense right they all pretend that they're public servants but that's that that's their spiel right there they're all there they're acting there they're playing a part that's a that's a means

37:33to an end they want the power they want the perks that come with elected office and so obviously in order to get elected you got to get the votes you got to get the contributions and so they're not making policy that's good economics all they're trying to do is get elected and get donations and so they have a vested interest in helping the people that give them money and people are always trying to buy special perks from government a tax break or you know put these you know regulate my competitor instead of me or this guy out of business and of course a lot of people just vote for something for free that was the power of Bernie Sanders I'll give you free stuff right both for me and there are a lot of people who don't know any better and they're just gonna vote for whoever it promises the most free stuff but free stuff isn't free it's very expensive but what it really

38:22amounts to is theft I mean the Liberals say vote for me and I'm gonna steal from somebody else and give you what I take because the government doesn't have anything the governor doesn't have you know they're gonna promise something they have to take it from somebody else they don't have anything government doesn't produce government just redistributes what other people produce so there's always a cost but whenever the government does that when they tax the productive people to give money to non-productive people they increase the incentive not to produce and they decrease the incentive to produce so all this redistribution of wealth just means that there's a lot less wealth to redistribute and everybody ends up poor if the politicians stayed out of it then you'd have a lot more wealth and everybody would be better off but that's not you know the politics of it are the

39:06things that are good economics are bad politics like like take take a health care why couldn't the Republicans repeal Obamacare because Obamacare is terrible economics but here's the problem how is it terrible economics we're gonna get into this the last time you hear yeah we got sidetracked what what is terrible about it well I mean I mean we can spend the whole show on why it's bad economics but you know there's a belief out there that government is somehow going to be a more efficient provider of health care than the free market which is it's not true right I mean health care is a surface right just like food just like shelter just like clothing and the free market can provide it better and cheaper than government I mean that's just always the case some people like it as a service though that becomes a part of what the government offers you along with you

39:59know when you pay your taxes they fix the roads they hire the police things along those lines they would like health care to be along that line as well just like it is in the UK and in Canada and a few other things and you know and in some ways those systems are better than the system we have now but they're not better than the system we used to have or better than the system that we could have if it was a pure free market you know but that there's two things you got right you've got health care and then you've got the health insurance right let's look at those two yeah those two industries separately because the reason that people buy health insurance right is in case well if I get really sick I can't afford the bills right just like you know people buy car insurance right when you buy car insurance you know that you still have to pay for gas you know you

40:45don't expect your car insurance policy to cover the cost of gas it doesn't cover the cost of new tires it doesn't cover the cost of a new spark plugs or your routine maintenance the reason you buy auto insurance is hey what if I get into a wreck and I total my car I don't have the cash to buy a new one so people buy insurance because they're insuring against something that's probably not gonna happen right when you buy your auto insurance the anticipation is that you never put in a claim and you're happy to never put into a claim and the insurance company obviously doesn't want you to put in a claim they're hoping that you they collect the premiums and the way auto insurance works is because most people don't put in a claim because they don't get into an accident the insurance company has the money to pay the people who do get an accident right and that's

41:31how insurance works but because of the government health insurance doesn't work that way anymore right because of the government and the government set up the system where if I hire somebody and I pay them cash they have to pay income taxes on it if I give them health insurance instead of cash it's tax free so a lot of people all of a sudden wanted health insurance instead of cash because they didn't have to pay tax on health insurance and now more and more people started to want their health insurance to cover the equivalent of more gas in my car or a flat tire and the minute you try to pay for your routine medical cost with a third-party payer through health insurance you have these spiraling out of control costs you know because if you never if you pulled up to a gas station and didn't actually pay for the gas you just like put your your gas your credit your

42:26insurance card into the pump and they didn't even have prices because when you go to the doctor you don't even know what things cost there's no price I mean when you go to buy gas everybody has the price right up there and I look around and if one place is two cents cheaper that's where I'm going right so but if if the gas stations didn't even bother to put the price and I said what do you care what the gas cost the insurance company's paying for it right I mean that's what we have with the health care so yeah I mean we have a system that government created where people rely on health insurance to pay for everything health insurance should just be for very expensive things that are probably not going to happen to you right I I get hit by a car I get cancer you shouldn't use your health insurance every time you go to the doctor and if we got inch we got

43:06people to pay for their health insurance the way they pay for their their auto insurance or their life insurance if we separate health insurance from employment health insurance will be much cheaper you know it's the government that married the two right right and and that's why the people say well if you lose your job you lose your health care that's because the government fix the tax code and people you know you don't lose your auto insurance when you lose your job but the other important thing and here's why Obamacare doesn't work see hope the thesis of Obamacare was hey let's make it so that insurance companies can't discriminate against people to have a pre-existing condition right so they can't charge people more money just because they happen to be sick right this was one of the appeals of it now here's the problem with that the only reason people buy insurance

43:53when they're healthy health insurance is because they know they can't buy it when there's with sick like let's say with the auto insurance if there was a law that said that our auto insurance companies couldn't discriminate based on pre-existing conditions if you can buy the policy after your accident and get coverage for the same price as if you bought it before right nobody would buy auto insurance right you would just wait until you had an accident but isn't it auto insurance a weird argument because auto insurance is mandatory like you have to have it whereas health insurance is not mandatory but Obamacare kind of makes it mandatory right well you're just saying it's for the wrong aspects yeah well either chance that it covers the wrong things well even look fire insurances in mandatory either right no I mean although insurance is in certain states

44:39it is and of course not all coverage is mandatory right yeah and you know you have compulsory coverage yes um which is similar to what you're talking about with health insurance compulsory health insurance like for catastrophic injuries well they made it they Obamacare made it compulsory because the point is this that if auto insurance was not compulsory right and you can just decide whether or not you wanted it if there is a law that said that insurance companies couldn't discriminate nobody would buy it because you would just wait till after you had an accident but the problem is not just that well the reason why auto insurance is a bad example is cuz you're gonna hit my car and you gonna do damage to me if you have no insurance in your car I'm not gonna be running into you on the street and and collide with my body and hurt you I say I don't have health insurance and so you

45:23get injured from me don't you think that's a different argument well rather than even make that argument let's just go to fire insurance because there's only one person involved me so I have a house okay you know would I buy fire insurance if I can go to an insurance company after my house already burns down right and by the policies for the same price so the reason that people buy fire insurance policies before their house burns down is because they know that nobody will sell them a policy after it burns right and the insurance companies couldn't stay in business if the only people who were buying policies were people whose houses already burnt down I agree with you so so here's what happened Obamacare so Obama says we're gonna make it so insurance companies can't discriminate against people who are sick well the result of that is no healthy person is gonna want to buy

46:06insurance it's a waste of money why pay premiums when you're not sick wait until you get sick so what I can't discriminate against you because you have a pre-existing condition so the way Obama tried to combat that was okay we're gonna force people to buy insurance we're gonna we're gonna require employers to provide it and if you know you don't get it from your employer we're gonna find you you're gonna have a penalty if you don't buy the insurance right now two things about that one the penalties were too low right because the penalty for not buying insurance is so cheap that it's cheaper to not buy insurance pay the penalty and then wait till you get sick to buy the insurance that's why the insurance companies are losing all this money and that's why premiums are skyrocketing because nobody wants to buy because the punish the penalties are too low but politically everybody likes

46:54the idea that insurance companies can't discriminate based on protocol so what the Republicans tried to do was have their cake and eat it too they said to the voters we're gonna keep the ban on pre-existing conditions but we're gonna get rid of the mandates we're gonna get rid of the penalties we're gonna get rid of this you can't do that you have to have both the real problem was the taxes were to penalties were too low they needed to jack those penalties up because so many people were paying the penalty and not buying the insurance but the reality is we need a free market insurance because the Republicans want to say you should be able to buy the type of coverage that you want you should build by the connivance which is true but then insurance companies have to be able to deny you coverage if they don't want to cover you they have to be able to charge you more if you're

47:38already sick I mean the only way to have inexpensive insurance is for the insurance companies to discriminate and to charge people more money if they're already sick and it's because of that that's why healthy people buy policies because they know hey let me buy it now while I'm healthy because if I happen to get sick that's gonna be a lot more expensive so what the what the government is trying to do is just trying to destroy the market for health insurance meanwhile the cost of skyrocketing insurance is getting more expensive health care is getting more expensive if you go back to the days before the government was involved health care was not a problem it wasn't expensive you know in the 1920's 1930's 1940s 1950s health care was not expensive people didn't worry about medical bills they were not high if you needed a catastrophic insurance it was inexpensive if you had to go to the

48:28doctor it wasn't expensive you know people didn't even worry about it because it was quality care and it was you know at a low cost and with all the advancements that we've had in medicine with all the technology with all the the drugs that are here health care should be cheaper today than it was in the 1940s and 1950s on a real basis you know and I hear all the time people make the argument well the reason that health care is more expensive is because it's more complicated now because we do all these things that we didn't do well if that was true then why isn't my cellphone today more expensive than a cell phone 10 or 20 years ago but what does no it's not more expensive no it certainly ends it's just you get subsidized by your company nobody or they they drag out the payment so they they like if you buy a cell phone from Verizon they're not selling you the full like if you buy an

49:21iPhone 7 they're not selling it to you at the full rate the full rate would be like a thousand five hundred bucks yes but I paid a thousand dollars in the 1980s for my first cell phone that didn't do jack this very early days yet Gordon Gekko one yeah look I've got this Mac you know MacBook Air me here and so this MacBook Air obviously this is a you know constant like twelve fourteen hundred bucks right my first computer that I had in college was an apple 2e and that computer and I got a dot matrix printer and I had a floppy disk and my dad spent almost five thousand dollars on it in 1981 and all it was was a glorified word processor right so obviously the power in this computer is so much greater than the one that I had in that apple 2e yet it's less expensive even forgetting about adjusting for inflation it's actually cheaper in actual dollars and despite the fact that

50:14it's more complicated and my point is that just because something is more complicated and more doesn't mean it's going to be more expensive health care today should be cheaper all of this all of the new technologies should be bringing down the cost of Medicine the reason it's not is because of government's involvement because if government was involved in the computer industry the same way it's involved in healthcare then we would see skyrocketing computer prices that you know okay so well now why does the government you're saying that the government wants to destroy the insurance industry that I don't want another drone I destroy it but why do they want to complicate it the well I don't think well first of all I don't think they're smart enough to destroy it on purpose I mean it's just the unintended consequences I'm trying to get votes they're trying to get elected

50:57and of course you know people want something for nothing so number one you know you get a lot of votes by promising free health care right so number one but also why do the insurance companies because there are massive subsidies for insurance companies right if I can get the government to require people to buy my product then I don't have to offer a good product right I mean wouldn't you wouldn't you like the government require everybody to listen to the Joe Rogan podcast if that was no editorial be super furious I mean well it's exactly the way it is but although but you know but there are a lot of businesses rather than having to win well maybe if you had a lousy podcast that nobody listened to you'd want the government to say hey too many people are listening to Joe Rogan forced them to listen to my podcast instead so you know you have these big healthcare

51:39companies or insurance companies that want something from government they want the government to mandate people buy their product or protect them from competition you know you can't if you wanted to buy an insurance policy from a Japanese company or a Swiss company you can't do it they can't some Swiss company can't come over here to California hell they won't even let companies from other states sell you policies I mean why is that we need more competition but government is protecting companies from having to compete with one another so they don't have to do as good a job but Obama was already in office right when he was trying to do this what was the incentive for trying to pass this once he's already and off well he wants to get reelected which he did he did get reelected but there's a lot of political payoff you have to you know pay off the people that helped put you in office and

52:24you know he wants to help other you know Democrats get elected you know and maintain maintain that power nobody ever debate this with him and in this sort of a rational pragmatic way the way you're laying it out right now I have no idea you know and you don't know when it comes to a politician you don't know if they're doing stupid things because they're stupid or because they don't care that they're done they're just and when the ramifications of what they're trying to propose why they said either either that people believe in liberal philosophy or these programs either because they're ignorant or because they have an ulterior motive right there there are probably some politicians there that are actually dumb enough to think that this is a good idea right like we talked about the minimum wage there are some people that actually believe that it's a good thing right

53:08they don't know how bad it is but they're doing it because they're thinking with their hearts and not with their heads but there are probably some people who support the minimum wage knowing that it's bad but they know it's good politics or they're afraid to come out against it because that's such bad politics so you don't know for sure if somebody is in favor of something do they actually realize how bad it is right and they're doing it anyway are they just dumb enough to actually believe it I have to say if you adjust for inflation you're probably right about cellphones some thinking now like a Motorola StarTAC oh yeah how much were those those were expensive how much were they when they came out I think they were like five or six hundred bucks but if you adjust for inflation think about how much it cost to use them yeah I remember what a big one the roaming costs were extraordinary

53:51but even if you didn't roam I'm on distance my long distance yeah my first plan I think when I was in it I had my first phone and I think it was like 70 80 bucks a month and I had like a half hour of talk time right so I would if someone called me on my cell phone I was quick because I had to quickly get off because if you went over your minutes right you know now I have unlimited not only is it unlimited I can talk I get I can see people I see their faces I could talk to people in other countries now there's companies that are offering unlimited data to just because they're because meeting yes cuz they're compete are gay it was a thousand bucks oh so I'm wrong yes see especially if you adjust for inflation oh yeah then adjust for inflation of a start act phone which was a piece of comparatively it was amazing at the time and the battery lasted like a half an

54:38hour 45 minutes of you know and so of a brand new iPhone is probably like 1200 so yeah you just for inflation you're right now when you're talking about Bernie Sanders and you're talking about some of the policies that that guy was proposing and some of this ayah the idea of you know Robin hooding the whole deal taking from the rich and giving to the poor that's extremely appealing to people right no how do you how do you lay it out to people in a way that they can understand that although this looks like a great idea that this is not a good idea and ultimately it's not gonna benefit you it's gonna make everything stagnant it's gonna make things harder for business and it's gonna make things harder for jobs a lot of people listening right now to even me saying that they're tweeting me they get mad you chill you sell out you one-percenter you piece of like

55:27that's the thought process between behind anybody who says anything even remotely negative about socialism that you have to be some sort of a sellout or you just want to keep things the way they are so you can benefit right it's amazing that so many people find socialism appealing yet they'll say oh you know fascism is really bad right the Nazis were really bad they don't realize that the Nazi Party that stands for National Socialism that was yeah it's national social so socialism is a broader economic theory that encompasses communism and fascism they're both forms of socialism so you know yeah they're it's all bad right and the whole idea that all the whole premise of socialism is bad you know it the free market being a libertarian is is all about the individual it's about freedom and and recognizing the the value of the individual and their rights to pursue

56:20their own self-interest their own happiness the property but in your question how do you talk to people and get them to see how bad socialism is I mean I mean first of all I mean look at the countries that have no tried it in its extreme form right whether it was like the Soviet Union or North Korea or Cuba or East Germany you could look at examples where you had you know people moving this direction these promises of you know from each according to his ability to each according to his need and was a disaster so it's not like we don't have a long history of failed socialist experiments and you know you can look at the countries that are the most prosperous and those are the countries that have the least amount of socialism I mean obviously you know socialism is going to exist in a certain degree it's hard to find any place on the earth now where there isn't some

57:10elements of socialism that have crept into the economy but the extent that countries have managed to limit the amount of socialist policies they have they have maximized the standard of living of their people so the more like look at Venezuela right I mean people you know and I that's a nice example and president Trump was tweeting out not too long ago you know you see is upset that they don't have enough democracy we need more democracy they don't need more democracy democracy is what got him into trouble because they voted for socialists what they need in Venezuela is more capitalism they need more freedom not just more people voting for other socialists whether the appeal of socialism essentially the appeal the same appeal of turning Puerto Rico into a state that you're gonna get something for it yeah I'm gonna benefit the people yeah I mean people you know like the idea of getting

57:58something for nothing and you know it there is a certain if you think of it superficially and that's why you know there's an old expression right if you're not socialist by the time you're 20 you don't have a heart but if you're not too concerned by the time you're third you don't have a brain it's because people are caring I mean in general most people care about their fellow human beings including conservatives and libertarians I mean they care to just that a lot of liberals think that conservatives are mean because they don't support these programs it's not because they're mean it's just that they recognize the unintended consequences of these programs that the program's actually make it worse for the people that you're trying to help but younger people who don't have as much real-world experience they don't know any better so it's very easy to be a socialist when you're 16 17

58:4218 you've never had a job you've never run a company you don't have much real world experience but you you're caring human being so I don't fault young people for being socialists but I do when you get to your 30s and your 40s and you haven't grown up to me that's like a little kid still believing in Santa Claus right how come you didn't learn anything right here's Bernie Sanders he's like you know what is he 77 years old and he thinks like as teenager I mean he didn't learn anything from all this life experience you know he's he didn't get it he's smarter wait doesn't he have a bunch of houses bad I think Bernie owns a few houses yeah I think he does and didn't it mean one of the he's in hot water right now because his wife yes why he decided to go full-on capitalist for his small college and buy up a bunch of land and the company went bankrupt yep essentially company but the

59:31way that you can get young people to understand look most people even if they're not in the 1% they want to get to the 1% right every bus some people would say that's not true some people say no it's not what I want I want to be comfortable and I want to pursue whatever my interests are why but what and again and what are those interests I mean people and we're apart maybe it's you know yeah but they still have to eat they still have right they still need clothes they just want to be comfortable they don't necessarily want to be a writer spinner you're gonna get those things better from the free market if you're the free market is gonna make you more comfortable than a government program and if you're just trying to have a shortcut and say look you know just steal some money from that rich person and give it to me but most people even don't just want to squeak by I mean most

60:15people want to achieve something they want to strive to get the most they can out of life and you know you know if you want to get a job I mean somebody has to hire you somebody has to have the capital somebody has to be able to pay you right you you're not gonna get a job from a poor person right they don't have anything to offer they don't have capital to give you they can't pay you know write a paycheck you know so people will understand hey I got my first job from somebody in the 1% okay you know and now I'm in the 1% myself because I you know I I was able to gain some experience games some knowledge you know so you could talk to younger people and really show them the different a different path one is you know relying on government and thievery because that's really you know most people would agree that theft is wrong right if the two of us got together and you know beat

61:01you up although obviously we can't but assuming we could we beat you up and we took your money you would say that's wrong right you can't do that well if we got together and voted for a congressman to take your money you know we out voted you two-to-one why is that any any better I mean why is it okay to steal through the ballot box but it's not okay to do it directly right so the argument against that would be that it's not stealing that you're just creating policies that even the playing field no that's healing people that are in the 1% like these hedge fund dudes that have these giant houses in the Hamptons they've accumulated massive amounts of wealth and they're using that to influence politicians and change law well you shouldn't be able to use it to influence politicians that's why we have to take the influence away from politicians take away that power but

61:43there's a wealthy hedge-fund guy that doesn't mean I have the right to go steal his Maserati just because he's rich and I don't have the right to tax him to take that Maserati either it's it's just another form of theft when you believe in the free market or libertarian you know you're giving somebody the idea look you don't have to get rich by stealing what somebody else has you can do it on your own and you know you you can benefit from what other people have because the only way people get rich in a free market is by delivering services that other people value the only exception is if you get rich through government connections and that is not a fault of capitalism that is a of government when you empower government to sell favors for the highest bidder that is not an indictment of capitals and that is socialism right and so that's what we have to stamp out

62:27we have to make sure that you can't succeed by bribing a politician that you can't use government power to create wealth that if you want to get wealthy you have to be wealthy as a result of voluntary interactions with other human beings without government involvement right government is there to protect my rights protect my property protect my life from other people who might infringe upon my rights from people who could steal it but government is not there to give you things it's not there to give you a job it's not there to give you health care you need to earn those things on your own and now obviously are there gonna be people who are just born they're just not they did maybe they're they have deformities or they're not smart enough or they have handy some kind of and they can't defend for themselves yes I recognize that but my solution for that is not to is not to

63:11steal from some wealthy person and say and give the money to somebody who needs it I believe in voluntary charity I believe that human beings care enough about other human beings that if somebody really is in a dire circumstance that private charity will take care of them and what I do know is when you have private charity right it's very efficient right if if you donate $1 to a charity 90 cents is gonna go to the people who need money ideally we well there's obviously some massive exceptions to that but with the government the government will take a dollar in taxes and only ten cents will go to the poor people the rest of it goes to the government bureaucracy and the problem with government is when you have a private organization they really want to do good right I mean you have these government anti-poverty programs they don't want to end poverty they want

63:59to expand poverty they want they want more poverty because then their program gets bigger then they have more power the last thing they want to do is end poverty because now they don't want to have a job so they're not there to try to make sure that the people who are getting the aid actually need the aid I mean it's different when it's private money and private charity you know they're you're really trying to do good instead of just perpetuate the poverty so you can grow your power base have you ever sat down with Bernie Sanders no wouldn't you love to when you love to have a debate with him like a long-form conversation like a three-hour I wouldn't shy away from it I mean I you know I dunno he's he's so old at this point that it's hard to believe that I'm gonna persuade him that he's wrong that he's gonna come to his you know after living an entire life believing in

64:42something well I'm not even necessarily saying that you would persuade him but it would be nice to see people counter you know or hear rather the counter to his arguments that he puts forth that are very appealing to a lot of these young people that you're talking about if you're 20 and you're not a liberal you don't have a heart you know that these these ideas are very pervasive in our culture and they were thought to be the solution to the ails that we're in they were thought to be the solutions to the problems with the bail out why is the government getting all this money and giving it to the banks when they could be giving it to people to poor people and and propping up the the income inequality look at that that conversation and that was a big problem and I knew that at the beginning because he I was I was against the bailouts but I knew that when the government bails

65:26out banks now you've created a precedent women if you're gonna bail out those banks why not bail out the little guy Brian and I have a lot of sympathy for that argument but I don't think two wrongs make a right we shouldn't have bailed out the banks they see the government shouldn't steal money from from one person and give it to somebody else you know you know regardless of who there's there they're giving it too but once you create that precedent and of course you know a lot of people should have been allowed to lose money in that financial crisis a lot of banks should have failed a lot of people should have lost their jobs and they didn't and so that's a moral hazard because the government created a condition is that hey if you're going to speculate and do all these things you know you know we're gonna bail you out and you know it wasn't you have to realize

66:08that it was the government the government was guaranteeing all those mortgages the government was guaranteeing all those bank the bank deposits the government was through Fannie and Freddie encouraging reckless activity encouraging banks to make loans to people who they knew couldn't pay it back I mean all this was rooted in government incentives and government subsidies if there was a pure free market the banks would not be able to assume all that risk but because the government you know had their back then they were be able they were able to do things that the free market never would have allowed that's why for years you know while the housing bubble was going up I was pointing this stuff out I mean you go and you know look at some of the YouTube videos you know that I would for all my appearances back then that eventually became that Peter Schiff was

66:51right do I understood the the ultimate consequences of what the government was doing you know but then the bailouts just you know allowed the government like the government never wants to waste a crisis they always want to use the crisis to get bigger to get more power we should have learned something from the 2008 financial crisis instead we have repeated all the mistakes right everything that has been done by Janet Yellen and Ben Bernanke since the financial crisis has actually made the US economy worse we're in much worse shape now economically so I think the crisis that we're coming to the next one is gonna be much worse than the one we had in oh wait I have to get to that in a second but what what what was the argument for the bailout well the argument for the bailout was that the banks were just so big right they were they were connected yeah and that if we let them fail it's

67:43just gonna be so much worse right cuz it's just you know we got it you know we we got a bail them out because you know even though it's bad it'll be worse if we don't get people like me and maybe Jamie had money in these banks and that money would dissolve well people would have lost certainly would the positive had lost some money yes they would have but you know I agree that had we not done the bailouts it would have been worse but it would have been healthy it would have been a step in the right direction you know you you know you work out it's you know like no pain no gain I mean you know like you know we you've got a swap bite the bullet on this and and and and and do what's right or I look at it like you know you we were strung out on cheap money we were like a drug addict and had we just gone cold turkey and got into rehab yeah it would have been a big downer right it

68:34wouldn't have been Pleasant and we would had to go through all this stuff but at the end of the day we could emerge healthy was it models that were being projected projected like did but people look at the two possibilities like having no bailout and we were looking at us here nine years later or having a bailout well you know I don't think they if they looked at anything it was just very short-term I guess all these guys are political motivated right an election is coming up right because all the bailouts happened in summer of o8 a lot of big ones and the election was in November of oh eight right I remember John McCain interrupted his presidential campaign to come vote for a tarp bailout and and so politicians can't see beyond the next election and if your horizon is that short yes the bailouts ease the pain but at the cost of exacerbating the underlying disease that is to cause the

69:29pain so because we did all the wrong things in OAD own I know ten instead of fixing the problems and having a healthy recovery we have the weakest recovery in the history of recoveries in fact I don't even think it's a recovery because I think the average American is sicker now than he was when the recovery began no some well you look at personal net worth has gone down real incomes have gone down we've eviscerated the the labor force I mean people have lost good-paying jobs and they now have two or three low-paying part-time jobs people are working longer for Less their net worths have gone down they're loaded up with debt we now have record high car loans record high credit card debt record high student loans the only thing we don't have is record mortgage debt and that's because homeownership is now at a 60-year low but we do have rising rents and so our standard of living is falling

70:18because we didn't do the right thing but because we didn't do the right thing this next crisis as I said is gonna be so much worse where we're just going from crisis to crisis because nobody has the guts to do the right thing because in the short run it means they might not get reelected right nobody wants to get reelected promising you know what things are bad we've made a lot of mistakes we're gonna have to suffer through this recession people are gonna lose money people are gonna lose their jobs but you know what don't worry the free market is going to work you'll get different jobs you'll get you know nobody has the guts to tell the truth to the voters everyone wants to pretend that they've got you know it's like you know by my my miracle cure you don't have to work out you don't have to die it just rub this cream on your thighs and the cellulite is

71:02gonna go away that's what people want they don't want to be told you got to hit the gym and you got to stop eating junk food they want the miracle cream that's the guy that gets the vote so we set ourselves for I think a currency crisis not just a financial crisis we're where mortgages are in trouble but where the dollar itself is collapsing our money is collapsing prices are skyrocketing it's gonna really hit the average American much more than just the stock market going down right when your money is going down right when the cost of living is skyrocketing right that is gonna be a big problem for a lot of people that that's where we're headed it's ultimately gonna be a dollar crisis and that's really you know like my in my business and my brokerage firm and your Pacific capital that's what I'm trying to do is help people protect their wealth by getting out of US dollar

71:47assets by investing in Singapore in Switzerland in New Zealand and Hong Kong in other countries owning other assets you know to try to protect themselves from this crisis that you know is coming you know and most people are gonna get blindsided by it just like they were by the last one so what is the crisis and how exactly do you feel it's gonna go down because I did watch some of your videos about the housing crisis from 2008 you're predicting it years in advance yeah I mean look you know things always happen you know I see things years before they happen because like you're not the only one right now this is something amongst your peers and your colleagues you guys are all discussing this well I mean I mean there's some people most people who feel the way I do maybe aren't they weren't on television saying it they were saying it you know to their buddies you know in their own

72:31living rooms and they were getting laughed at just like I was I guess I used to get emails from people hey I've been saying not this is exactly what I've been saying everybody thinks I'm crazy and you know it's just you know they're the same one it's everybody else that's crazy that just it gets caught up in it but what's going to happen is we are going to go back at some point into another statistic recession I mean I think that we've kind of been in one this whole recovery because I don't think the government numbers are really that accurate I don't think that inflation is as low as they claim at least as measured by the consumer prices so I think that the economy has actually been contracting during the years that we've been pretending it's been growing but I do think at some point statistically we will go back into a technical recession where even the

73:15government admits that the economy shrinking right where the GDP is negative for a couple of quarters in a row and then what is the government going to do as a result of that they're going to do exactly what they before they're gonna take interest rates and bring them back to zero from wherever they are the difference is normally they lower interest rates and then by the time there's another recession their way back up four five six percent this time they barely got him back to one percent and they kept them at zero for seven eight years which is unprecedented and of course the mistakes that are made are a consequence of money being too cheap right the reason that we had a real estate bubble the main reason was because Alan Greenspan lowered interest rates to 1% and left them there for about a year and a half and then took about a year and a half to rise him to raise him back up to

73:59normal so you had a few years of artificially low interest rates and that gave us this huge housing bubble well we had seven eight years of zero I mean the the mistakes that have been made under Obama dwarfs the mistakes that were made under Bush and these are mistakes that are a consequence of money being too cheap of the government setting the price of money as opposed to the free market you get too much debt you get too much speculation and so we've got a much bigger bubble now and when the this one pops because it's so much bigger right so then all of a sudden the Fed has to cut interest rates again and now what happens to the dollar because see the dollar has been rise in these past few years because everybody thought oh the Fed is going to normalize interest rates the Fed is going to shrink the balance sheet when none of this stuff happens when the Fed goes back to another round of

74:45quantitative easing when they got to crank up the printing presses when they don't shrink the balance sheet but they bloat even bigger right it goes to five and a half trillion six and a half trillion I think the bottom could drop out of the dollar I think the dollar is gonna get killed the opposite of what happened in no.8 when the financial crisis hit in o8 the dollar had been falling for seven years it was at an all-time record low and that when the crisis hit it actually caused people to buy the dollar but I think this next crisis is going to be the big sell signal for the dollar it's people are gonna rush out of the dollar as the Fed has to go back to more QE as people realize that this is what I said for the beginning this is a monetary roach motel right the Fed checked us in and they ain't checking us out there's no way to normalize rates there's no way to shrink

75:29the balance sheet and when people realize that it this is a permanent situation the bottom drops out of the dollar and then commodity prices really start to rise remember when oil prices went from like 20 dollars a barrel in nineteen and 2001 up to 150 right that was happening because the dollar was falling and as the dollar starts to fall all these commodity prices are gonna rise again and now inflation is really gonna pick up the way they measure it and the government can't do anything about it they can't raise interest rates because if they raise interest rates they collapse everything all the banks that were too big to fail they're bigger now and it would be even worse if they failed so they can't let rates go up because the bank's absorbed other banks they got bigger and now you have all these banks that have all these long-term loans that have low coupons on

76:12them if interest rates go up all these big banks are gonna fail I mean people think rising rates are gonna be good for banks they're gonna destroy the banks they're gonna destroy the housing market I mean and the government this is the biggest thing look at the national debt the national debt is about 20 trillion the bonded debt and that of course that doesn't even count all the unfunded liabilities that's just where the government has sold a bond right Treasury bond that's about 20 trillion but what would happen if interest rates went to 10% well it would cost the government two trillion dollars a year just to pay the interest on that 25 on that 20 trillion we don't have anywhere close to that I mean right now interest rates are almost zero and we're spending about 250 billion a year on interest but if interest rates actually went up because the Fed had a fight inflation

76:57the Treasury would have to default think they would have to tell the core we can't pay on these bonds what do you show me Jamie's just the national debt oh so close 1990 73 look at ya spinning oh yeah terrific but and so you know obviously the Fed has to keep interest rates low so the government can service that debt look at Medicare Medicaid Jesus Christ that's not even a billion is that a trillion huh what did you reckon at that right there what is that no that's 1.1 trillion oh it is that's a large US budget items those are budget item oh that's the budget Social Security that's not the debt that's what they're spending oh look at this number if you go down lower you they'll probably have all the unfunded liabilities that's on that page somewhere you know and then they break it down then they break it down per capita you know per taxpayer I mean it's an art but my point is that

77:54we've got like an adjustable rate mortgage on that national debt the government's got ultra cheap money if interest rates spiked there's no way that the government can pay that debt this is hypnotic yeah it really is terrifying I've never seen it before I've never seen it before either I'm saying one retail square Porto Rico would be it would be so idiotic for Puerto Rico to want to join the Union and absorb their share of that debt now for the average person like myself who has zero understanding of the financial system you listen to Trump talk about the economy booming and it's it's on an upward the thing and unemployment is down and jobs are up yeah I mean yeah that's what's really bothering me about Trump is the hypocrisy because when Trump was a candidate and he got elected because by and large he told the truth about the phony nature of the recovery Obama was

78:43out there talking about how great things were and Trump was like BS it's not great oh you're talking about low unemployment that month number is bogus the real unemployment latest twenty percent or 25 percent his people stopped looking for jobs and doesn't count yeah people are you know they gave up looking so they don't have a job they're not counted as being unemployed and he pointed out that all the jobs like here this is irony right so what are the byproducts of Obamacare Obamacare said that if you have a full-time worker you have to give him health insurance right and full-time was anyone that worked 30 hours or more well employers aren't dumb they can do math hey if I if this guy is working 40 hours a week I got a I got to give him health insurance which is very expensive but if he works 29 hours a week I don't right so what happened employers started transitioning their

79:29workforces from full-time workers to part-time workers well what happens if I'm gonna have only part-time workers I'm gonna have more workers crank us each one is working fewer hours so I'm gonna have to have more I have more jobs right if I have if I had 500 part-time jobs but now I have a thousand I mean if I had 500 full-time employees but now I have a thousand part-time employees that's twice as many jobs Obama got credit for all those extra jobs right as we were as we were destroying full-time jobs and replacing them with two part-time jobs we got all these jobs so Trump was honest as a candidate these are low jobs these are crappy jobs you know and a lot of the people that were getting jobs were older people who don't want jobs they were retired and now they're working at McDonald's part-time because they can't live on their retirement money and in fact you know when you look

80:20at the labor force participation rate that he would talk about you know we're labor force participation is collapsing is with young people people in their 20s and 30s can't get jobs meanwhile 70 and 80 year olds are working in record percentages right because they can't afford to retire and their grandkids can't get a job but so Trump was telling the truth about how bad the economy really was and that resonated a lot of blue-collar guys a lot of Democrats in the Midwest voted for Trump because he got it he understood their p felt their pain right like Bill Clinton and Obama was in a fantasy I mean Hillary was pretending that everything was great under Obama and people didn't want four more years of that so they voted for Trump and also you know when Trump was a candidate he talked about the stock market because oh the stock market was going up when Obama was president and

81:10Trump said well it's a bubble who cares about the stock market this is a big fat ugly bubble wait till it pops okay he was right about that now he's president what is he saying every time I see him the stock markets a new record high this is fantastic you know it's all because of me this is great and when the jobs numbers come out oh this is look how low the unemployment rate is this is the lowest has been in 15 years I'm doing a great job I'm doing nothing has changed this is the exact same economy he inherited it's the same crappy jobs it's the same stock market bubble the only difference is he's not a candidate anymore he's the president and now he's trying to market the same crappy economy that Obama had and pretending everything is good and I wish he was stay would stay true to the candidate and admit you know what the economy is still a disaster because nothing has changed

81:57right he was gonna drain the swamp instead he just poured more water in the same swamp let you know but to actually drain it means to really shake things up and in a way he's shaking things up but not the way that's gonna get meaningful change for the country right that the shaking up that he's doing is not what people were voting for right we really need real substantive economic change but the president is not able to deliver it he's surrounded himself with the same cronies that that were around in the Bush administration I mean what good is going back to Bush what is his incentive to do this in the first place the guys are already wealthy I mean and then he gets into this position and now he's a Salesman right now he's trying to sell us on his acts and everything's great and under him everything's booming and it's gonna keep booming it's gonna get better and we're

82:41gonna make America great again yeah you know it was a good slogan and you know why I mean Trump's always been a Salesman right he said he's a marketer he's he makes money on his brands right so that's that's in his blood that's what he does and he obviously doesn't does it well because he became very successful you know marketing his brand and so I think he's kind of continuing that but you know does he think about his legacy I mean does he want to actually make a difference does he does he care about posterity and how he's viewed you know I don't know I mean if he is he just trying to get reelected too so he can be the president again you know I don't know I'd have never had a conversation with I mean I met him I think I only remember meeting him one time I was at a concert and we were sitting like on the same row he was right next to me it was a it was a

83:25Crosby Neil Nash and young and so I happened and he was there with his daughter and I think it was I think it was you know her fiancee I think they were married yet but they're married now so they they were there I got to say hello and I think that's the only time I ever met him and so it wasn't really I didn't get a chance to engage him in any kind of thoughtful conversation I know a lot of people who know him right I mean I know a lot of people who have been in his circle but they've never kind of introduced me to it so I'm kind of you know I'm not really on the inside so I can't really you know I don't really know but I mean I voted for him but that was why I vote for him because I didn't want to vote for Hillary now I knew it didn't matter cuz I lived in Connecticut oh and by the way now that I live in Puerto Rico I can't vote anymore but you know it's like

84:08that's one of the things people say that Oh Puerto Rico's in trouble because you can't vote who cares everyone I voted for in Connecticut lost in Congress right because you know doesn't matter they don't have congressional representation because I'd rather have no taxes and no vote then to be able to vote for who taxes me but I voted for him I mean I normally would just vote for Gary Johnson right I had voted for Gary Johnson before because this is the second time you ran I voted for him the last time but um but you know on the way to the polls my wife was like you know we got a vote for Trump because it was like he was like the best protest vote I could cast I thought I thought he was a bigger in-your-face to the establishment then voting for Gary Johnson was and I and they ran a bad campaign they really blew an opportunity to have done something with the libertarian brand for future

84:58elections so I wasn't happy with the way that campaign ran they had it they had an opportunity there with how unpopular both candidates were but I you know I I just felt you know this is the wave and and I thought Trump was gonna win you know everybody thought there's no way he's gonna win and you know I thought well he might lose I mean I didn't think it was a hundred percent guarantee but I thought I thought he was more likely to win than lose because I thought other people would think the same way I knew the economy was a lot worse than was being portrayed by the media by the Federal Reserve by Obama and I thought a lot of people would you know would vote that way and I knew the polls you know maybe not be trusted because people didn't want to tell the pollsters that they were voting for Trump because you know Oh what are you racist you know why you vote but you know when they get in

85:41there and vote they're gonna vote you know their pocketbook and you know Trump was offering the most that the message that made sense they knew America wasn't great see Hillary Clinton was like we don't need to make America great again it's already great and the average guys doesn't feel so great to me right my standard living is going down the only thing going up is my debt and so they voted for Trump but I think the strategy is gonna blow up I don't like what Trump is doing what do you think is tragedians well I think he is he has now claimed ownership of this economy he has put the Trump brand on this stock market bubble so when the market goes down when the economy tanks back into recession it's not Obama's recession it's Trump's I mean he's basically taking the bait I think he's the fall guy I think the Fed everybody's gonna blame it all on Trump like oh look he inherited this great

86:28economy from Obama which he didn't and now look it's a mess so he should not be claiming credit yet for victories he hasn't won he should be setting us up for this collapse that is already coming that is not because to him he needs to clean up the mess and it's not just Obama's mess its Bush's mess Democrats and Republicans work together to screw this economy up and the Federal Reserve was a big part of that and and Trump you know criticized the Fed as a candidate all of a sudden now you know he loves the Fed wasn't there some sort of improvement in the stock market because people had confidence that he was gonna enact these changes and he was like well maybe things better for businesses yeah I do think that that was able to add some air to the bubble right I think it was a big bubble and then you know when Trump won all of a sudden people started thinking

87:13hey wait a minute we're gonna get tax cuts we're gonna get regulatory reform we're gonna get more economic growth and so the market rallied on that but I don't think that that's actually gonna happen I mean look they didn't repeal Obamacare that was a big part of the optimism it doesn't look like we're gonna get substantive tax reform the most we're gonna get our tax cuts so we're not gonna get a real reform that's gonna cause a lot more economic growth we're just going to get bigger deficits we're gonna lower taxes but we're not gonna reduce government spending and the real sad part is no one is talking about making government smaller everybody wants to talk about tax cuts okay well taxes support government so if you want lower taxes you need a smaller government and I want both right I want lower taxes but I'm not naive enough to think I can have big government with

88:03lower taxes because that just means bigger deficits and deficits are a worse way to pay for government in taxes so if you decide that you want to have big government then you better have high taxes to pay for it and you know who's gonna bear the brunt of that the middle class so if the middle class wants big government they want lots of entitlements then they're gonna pay through the nose but someone has to be honest to say look if you don't want high taxes then we got to shrink government but they're talking about making government bigger look the Trump is talking about let's spend more money on infrastructure where's that money gonna come from we're gonna cut taxes and spend more money on infrastructure you know we're not gonna make ourselves rich by spending money on infrastructure now what happened with the Republicans that voted against Obamacare and now

88:46vote against repealing Obama yeah they're the same people like what and what is wrong with Trump's ideas again are hypocrites they only voted to repeal Obamacare because they knew Obama would veto it right so is easy to grandstand oh yes let's repeal it right it was a good talking point to get elected but the minute they got elected they were too afraid to actually stand on that principle because they didn't want to tell somebody that you can't buy insurance when you're sick for the same prices when you're healthy right nobody wanted to take away that free lunch that had been served up by by the Democrats all the Republicans wanted to do is rebrand the free lunch they wanted to continue to serve it but take credit for it right they wanted to make it Trump care or Ryan care right I didn't even like this whole idea let's repeal and replace but repeal don't

89:36replace with anything replace it with the free market we don't want to get rid of Obamacare and replace it with something that's almost the same so what was the idea of replacing it in the first place because of it there is it's all politics the benefit was they tried to keep the ban on pre-existing conditions which voters liked but get rid of the taxes and mandates which they didn't but the two are intertwined you can't have one without the other so that people like the ban on pre-existing conditions because they want to know that they're covered if they're going in there and they have cancer they could still get covered right but then no one's gonna buy coverage if they don't need it I mean you cannot use what happens to those people that do have cancer and all these different diseases like if we don't have a universal socialist health care how do we do thing that

90:16happens once they have the lot of them have to buy the insurance before they get to cancer when there's still health right I mean I don't have cancer right now right I may get it next year in two or three years so I have health insurance now right right so if I get cancer I know I'm covered that's you you're a successful guy what about someone who's not even this bad position you don't have to be that successful to be able to afford in a free market to buy yourself some coverage the question is what do you do with the person who made the mistake of not buying insurance when they were healthy right and now they get sick and of course once you're sick you can't expect an insurance company to sell you a policy because the insurance company is trying to make money they only sell policies to people who they don't think we're gonna put in claims so you can't go to an insurance

91:01company when you're already sick and say sell me a policy what's in it for the insurance company nothing so now you got to figure out well how do you take care of that person well first of all the best thing is to make sure that person buys the insurance policy while he's still healthy so that means you you have you don't have the the ban against pre-existing conditions and you allow insurance companies to sell inexpensive insurance that doesn't cover a sex change operation what's rug abuse you know Terry you he's transphobic can't believe it if you just want to buy insurance that covers like cancer right and you're twenty or thirty years old that's cheap it's very inexpensive it's all this other crap that they want a mandate that makes it so expensive but if you get a certain situation where for whatever reason somebody had no insurance and they have no money and now

91:44they get cancer well that's what charities are for people donate money hospitals if doctors didn't have to spend so much time on paperwork and filling out insurance forms they would have more time to donate I mean years and years ago doctors used to give a lot of their spare time and of course that was before they had the income tax you know when the doctors didn't have to pay income taxes and when the doctors didn't have to deal with insurance companies they had a lot of free time to help a lot of poor people for free and doctors like doing that doctors get a lot of satisfaction from helping people that's one of the reason that so many people become doctors it's a very rewarding occupation when you're a doctor yes it is lucrative and you can make money but doctors also enjoy helping people for free the problem is they can't even afford to do it now because there's all

92:28their time is spent doing other stuff they're also settled down by malpractice insurance and they also have extreme amounts of medical school debt that they have to handle yet they shouldn't it shouldn't be that expensive to go to medical school and it wouldn't be if it was a free market and yes if we had tort reform if you couldn't sue look it's funny you know I'm staying here in at a friend of Mines house he lives in Beverly Hills we went to high school together but and so he's in real estate right he owns a lot of property and one of his tenants is Starbucks right he has Star Trek's restaurant and they just got sued and the person is suing him as well because he's the landlord so this is the circumstance and this is this is America so a guy and he's I guess he's hard of hearing he's not totally deaf but he has has a hearing problem and so he goes

93:12into the Starbucks and the Starbucks is playing music right there's you know whatever they have background music on in the Starbucks and so he asks the guy behind the counter oh by the way I'm hard-of-hearing do you have this special device that I can wear while I'm in here so that while I'm in this restaurant I can enjoy the same music is everybody else and the guy said well no we don't have that device well he sued for $10,000 plus attorneys fees and now he's suing my friend too because he's the landlord of where the Starbucks restaurant is but this is America I mean yes that's a hilarious lawsuit you walk into a restaurant and you have a hearing problem get yourself a hearing aid don't force the guy but these are the regulations these are the lawsuits the Americans with Disabilities Act is the most ridiculous I mean you know I remember when I you know in California this is a

94:00true story I'm not making this up you can google this there was a strip club here in Southern California and I guess their their thing was they had a shower on the stage and so the stripper would strip in the shower so you can watch her you know with the water and it was if there was a big pole right so it was the shower was up in the air and you had to climb up the pole to get to the shower and then you do your strippers you'd strip well the government made them shut that down and it was because it was discriminatory against strippers in wheelchairs because there was no way for a stripper in a wheelchair to climb up the pole now I've never even seen a stripper in the wheelchair not that I spent a lot of time in strip clubs but but this is this is where we are as a society right then we're saying you know if a stripper can't go on that pole then nobody can go

94:46on that pole right if a stripper that's in a wheelchair can't go on yes right yeah not you know but all these laws and regulates all these phony rights I mean just because I'm hard of hearing doesn't mean the whole world has to accommodate the fact that I'm hard of hearing I mean sometimes people will say look let's say I happen to have a size 14 shoe I have I have a really big foot does that mean that every shoe store has has the stock a size 14 just know I mean cuz they know that barely anybody is gonna have a size 14 so they don't want but I go to the big and tall store because I know they're gonna have a size 14 so you know they're gonna be certain businesses that are gonna cater to you know people with handicaps like you know you have all these hotels and motels that have to shut down their swimming pools because they can't afford the money to have a

95:35lift so that somebody in a wheelchair can go into that swimming pool well why does every single swimming pool in the country have to accommodate somebody in a wheelchair why can't people who have wheelchairs go on the internet and find out which Hope which hotels are catering to that particular clientele and just go there but you when you force everybody to do it they were doing miniature golf courses are shutting down because they can't figure out how to be accessible to people in wheelchairs even if no one in the wheelchair has ever tried to play that course and then they end up having to shut it down because they can't you know you know it to hold the whole thing I used to go and I used to go to this Beach here in Malibu when I was younger living here and in order to get to the beach you know you had to walk down like a cliff was like a dog beach and I forget the

96:19name but there's no stairs you had to kind of walk down his cliff but you know very in the very front there were like three or four handicap parking spaces that were never filled they were always empty and a lot of people would have to park on PCH because the parking lot would get fill but nobody would ever use the handicap spots because nobody who was handicapped could possibly get down to that Beach yet they had to have those spots there anyway they had to have those spots but they didn't have to have some sort of a well access to gauge because that's nature right so it was a beach that no one in no one whose handicap could ever go to but yet they had to have all these all these spots there like you could take that to Yosemite and say like hey if you want to climb this mountain you have to have use of your arms so we're gonna have to figure out some sort of a handicapped

96:58access up the top of this mountain as otherwise it's unfair but this is where all the government the government thinks they're being charitable and look do I feel bad that people have handicaps or curse horse but the solution is not the Americans Disabilities Act and you know there are a lot of employers now that won't hire people with handicaps because it's now so expensive whereas they would have done it before you know that's the whole thing about you know these anti-discrimination laws like you know you can't discriminate based on gender based on sex based on you know you know sexual identity and all these different things well because of that there's actually more discrimination you know there are actually employers now who aren't racist at all but who will go out of their way not to hire minorities because they're afraid of getting sued right well if I hire a black eye or if I

97:43hire a Hispanic or if I hire a homosexual what if I fire that person because they're not doing a good job they could sue me they could say will you fire me because I'm gay as a man about women Tec I heard this argument recently because I was reading some article written by Ellen Powell she was that woman who had that big lawsuit sexual discrimination lawsuit it says some article about women in tech and someone was saying well see this this is the reason why people don't want to hire women in the first place but isn't that sort of a slippery slope because if she really was being sexually discriminated against well they shouldn't really be able to do that in the first place if right what he's saying is true that they create this hostile work environment for women they shouldn't be able to necessarily just never hire women just so they can remember that make sense

98:32remember if you have a business right right because they always sue the business they don't so let's say one of my male employees harasses one of my female employees they don't say that one guy this is me they say the owner so this is how it works against a more profitable because the owner has all the money right right you know so so here's what happens so I am an owner of a business and now some woman walks in and let's say she's particularly attractive and I start thinking okay do I really want to have this potential lawsuit walking around my office do I really want cuz maybe she really does get harassed but I'm the one that's liable for that harassment right and I can have all the policies I want but you know guys are horny I mean we know what we're like and you know you don't lump me in there sir all right well poder you but I mean tinya employers don't want

99:22lawsuit right and and so the easier you make it to sue the less likely you're gonna get a job so if employers are looking at I want to hire the person who's least likely to sue me but isn't it conversely the harder you make it to sued the more likely people are gonna get harassed no I mean if if somebody is harassed and sue the person that harassed you don't sue the person who happened to employ him that might have had nothing to do with right so don't sue you may be the individual that causes whatever the issue is yeah I mean it's got to be a pearl I can't you can't just say the employer and again when you talk about something like discrimination Lexi I'm Jewish right so maybe it's easier if I just talk about Jews versus something else but so let's say somebody doesn't want to hire me because I'm Jewish I support their decision they have a right not to like me and no one no one has to

100:10like Jews and I know not everybody does and if somebody is an anti-semite that's you know that they're their right to be that you know if they want to fire me because I'm Jewish they can do that they don't want to hire me you know if somebody wants to have a restaurant and they want to put a sign that says no Jews that's there right now I think anybody that eats there I you know I think they got a problem because right look I'm not black if there was a restaurant that had a sign that said no blacks there's no way I would eat there just out of principle rice I think if there's somebody that doesn't like Jews the last thing they're gonna do is put that sign out there because you know what they want me to eat there even though they don't like me they want my money and they also don't want the blowback and they don't want the bad public can you imagine like people keep

100:51people say like well you know if we if we don't have all these anti-discrimination laws then restaurants are gonna serve blacks you name me one rent you find one restaurant in this country with the internet that put out a sign no blacks allowed I mean that'd be the end of that restaurant a lot of these laws were sort of established before the internet was the powerful force yeah it is today right right but we can now see a lot of the harm that these these laws have done because you go back you go back before all these anti-discrimination laws black teenage unemployment let's say in the 30s was lower than white teenage unemployment lower now do you think we have we're more racist today than we were back then no we're not more racist we're less racist but it's all these laws that have backfired all these you know you know anti-discrimination laws and you know

101:37you have this whole industry like recently right you know you have this big movement because we had the riots as Charlotte ville because you know they want to take down these statues these Confederate statues as if those Confederate statues are the reason that we have poverty and unemployment and crime in african-american communities these statues have nothing to do that and taking them down isn't gonna change anything but you've got these people in America that make a living off of poverty and off of race baiting that want to say oh the reason that you're poor the reason that there's crime is because of racism and the racism is because of these statues so vote for me give me money and I will help you write you're a victim and I am your solution and and they acted well we'll just get rid of the statue because even if they get rid of the statues nothing's gonna

102:20change now they have to get rid of something else right the statue for a lot of people represents racism like if you see a robert e lee's statue and then you read about what robert e lee did to his own personal slaves and oversaw some of the lashings and you know in caught slaves that were trying to escape this is a horrible account that i retweeted recently yeah of some slave that was caught while i was trying to escape robert e lee and robert e lee / saw them beating him and lashing him yeah i mean i don't know i mean all of the various stories and I know that Robert Ely was a very well-respected guy even in the North I mean he was very in fact Lincoln wanted him to run the Union Army I mean he turned it down because he couldn't cuz I he's a good killer know well mean respected well general he was a war hero in the American Mexican also a slave owner well so are a lot of people so in

103:10Thomas Jefferson so was George Washington I mean a lot of people differently yes of course look if Thomas Jefferson were alive today he would not own slaves obviously right but if you or I were born in the antebellum South if I was born in Virginia in 1750 would I feel differently about slavery that I do today there's a good chance that I would I mean it was the culture slavery have been going on for thousands of years it's not like we invented it so it's horrific as that is to say I think you're being very honest I think by being very pragmatic about the but by the time my point is that most people that even see a statue of Robert Ely don't even know who Robert Ely was the average American doesn't even know who fought in the Civil War let alone who wanted I mean thanks to American schools I don't think those statues those statues have been there for look Martin

103:58Luther King never cared about those statues he didn't march down so we got to get rid of statutes well do you know when a lot of those statues are actually put up they lot of them were put up during the civil rights era they were put up because people were fighting against all the races well a lot of them so people it was a reaction when put up they a lot of them were put up in 1900 1910 1920 I mean exactly a spike there's actually a spike in these civil war monuments going up yeah they're actually fairly cheap cheaply made you know bronze statues that were cheaper to produce that were made during the civil rights era indirect protest to the civil rights era yeah they ended up these statues guys across when they forget to represented slavery the people who were leading the anti civil rights movement were all the Democrats right even though L be a long time ago right well this is

104:45their this is when they passed it when they when they passed the Civil Rights Act 1964 it was only because the Republicans that had passed if the Republicans had voted for it in the same proportion and Democrats that would have been defeated but that the part of the Civil Rights Act that I was against right and I obviously I was a little kid then so I was I was I was born in 1963 so I'm just looking back at it right that all of the the anti-discrimination laws that had to do with government and the state governments because you had a lot of institutionalized racism down south by Democrats right and all that was bad and the fact that we eradicated was good the part that was bad is the part that went into the private realm and said if you are a private person you can't discriminate because now all of a sudden the government is the thought police now all of a sudden you know of

105:32every every decision that everybody makes is being second-guessed you've opened up everybody to all sorts of lawsuits and you've gotten this blowback where you know businesses are afraid to hire people not because they're racist or bigots but because they don't they fear a lawsuit and so now you've increased the cost of employing people that are in these in the specialized group so I think that that was a bad thing and also I think legally I don't think the government constitutionally has the right to tell me I mean everybody knows like if somebody tried to tell me as a in my private life you know you need you know you need to be an equal opportunity dater right all the women that you you you you know you can't just date white women or I've seen this sorry man I mean but and also you know even as an employee right if I let's say I'm Jewish if I say hey I want

106:20to work for another Jew I just like working for Jews and I go and I apply for jobs and and I and I say you know I don't want to work for you you're not Jewish oh you know so I can discriminate as a worker among and I can quit I can go to my employer and say you know what I'm tired of working for a Jew I quit right that's legal you can't sue me for discriminating against you and going to work for my competitor so look employers are you don't lose your rights because you create a business you don't lose your right I'm sorry we here but don't you think there's a big difference between someone who makes a personal decision of where they want to work versus someone who has power over you there's a big difference between someone who chooses like I don't like working for this guy because I only like working for white people and you can decide to do that because it's your own

107:04personal choice to worry to go that you know you're not holding any power over someone well yes a lot of created their anti-discrimination laws because you're discriminating against other people and you can keep other people from making a living well employment is all about discrimination right I'm trying to find the best person for the job I can discriminate based on all sorts of factors right that's one way to look at it right in the nation but you're being discerning more than any right right well you're saying I look you're gonna discriminate based on competence based on my background based discrimination the distortion of the word though it's still discriminating just means you're you know you're kind of picky right right you're talking about discriminating based on a factor like you're being like or sexist being dissed alma phobic no being being

107:50discriminating and racism are different things right case you can discriminate based on race and not be a racist like let's say somebody decides okay I can I can hire two candidates one is white and one is black and if they say well if I hire the white candidate I'm less likely to get sued if I have to terminate him because he's not doing a good job because he can't he can't claim so if I make that decision based on race it's not because i'm a racist i'm trying to practically look at the numbers i'm not necessarily we would disagree they would say that is a racist decision so you're assuming that black people would be more likely to sue you well there's that statistically no because you can't yet you can't if I fire somebody who's white they can't say you fired me because I'm white right it's just never at you can't do that right so obviously there are plenty of lawsuits for wrongful

108:38termination I've had them myself where somebody says you sued me because I'm black nobody is gonna say you fought you fired me so it is it is a a statistic a statistic that somebody can consider but it is an actual statistic or more black people or black people rather more likely to fire for rather sue for wrongful termination black person is more likely to sue for a racially based determination then somebody who's white you know a women is a woman is more likely to sue because she was discriminated based on her sex a man is not likely to say you fired me because I'm a man but you're gonna get someone saying you fired me because I'm a woman because they're a member of the you know of a protected class but if somebody makes a decision that doesn't mean that you're that you're you know anti women if you're trying to make a rational decision the racism is just believing

109:30that one race is inferior just not liking somebody because they're a member of particular that's totally different so you think that racial discrimination should be legal if you're thinking about the future of your business and just hedging you know it's no I don't care I think it should be legal no matter what I don't want to look I think people have a right to be yes and but the thing is though if you're a businessman and you're and you're making your hiring decisions based on the color of people's skin or their their gender and my competitors are making decisions based on competence you're not gonna survive I mean if you are gonna turn down a better quality female worker and you're gonna settle for somebody who can't do the job as well because you want to hire a man you know you're not gonna be a successful businessman so I have my faith in the free market that racism

110:18there is a cost right when when you're a racist and you want to be a racist in business that cost you a lot of money and I think you know but what happens is you know the government tries to take the cost away from racism you know they try to they try to substitute laws and regulations I'd rather have the market punish the racist right let the market punish somebody who is hiring people that are not competent for the job but he's hiring them for some ridiculous reason well conversely what did you think about the Google memo because one of the one of the things about that memo was the the gentleman that was fired what is his name James yeah d'amour doesn't him he was saying that Google was hiring people based on whether or not there are minorities and women regardless of their competence yes they were discriminating on like discriminating against straight white

111:09males to pursue people that would give them the appearance of diversity well they're doing that yeah they're I mean they're trying to be more diverse and and and mainly the diversity that they're going for is they mop they want to hire more women and and also more men are yes well that that too but I think his argument or his paper was more focused on the gender but what he was trying to do is point out the fact that fewer women are just in programming I mean they're not they're not interested in that pursuit as much as men are and so you know when you're when you're hiring right when Google is hiring and they're trying to get the very best you know there's a much bigger pool of male applicants for those jobs I mean it's much more competitive and so he's making the point that look you're just not gonna get a lot of women in in these jobs and if you're going to just

111:53try to have more diversity you're just gonna sacrifice the quality and you know I'm sure that he's right but the interesting thing is he gets fired for expressing that opinion and what's ironic is he's suing well now look I mean look personally see personally I think that Google should be able to it's their company I think that if they want to fire somebody they should be able to do that now if he had a contract see I don't know what kind of employment contra if he's an at-will employee you know I think they should be able to terminate him for whatever reason just like I think he should be able to quit well they were saying he was reinforcing negative gender stereotypes that was the main reason they publicly stated that he was bad I mean I think it look it shows you how you know how low that you know we've fallen as a society that you know you're allowed to express your opinion

112:36as long as it's the politically correct opinion right and Google is afraid for of the blowback and I couldn't still look if they think it's gonna hurt their profits if they think the way to make money in America today is to bow down on the altar of political correctness and just pretend that things that you know are true or not true but you know my principles are consistent but I do think that they violently probably violated California labor law in the way they fired him I don't like California labor law I mean I'm an employer here in California and I don't like it and I would probably employ a lot more people here if they didn't have the labor law that they do but I'm consistent in in my views so but I it I think it's terrible that they had to fire him because if he had expressed the exact opposite position it wouldn't have been a problem right it's just because he is basically

113:22saying the truth I mean look why is it that you have to pretend that men and women are exactly the same in all aspects of life that there's no difference in our evolutionary biology that men and women didn't necessarily evolve in different ways based on the roles that they played you know thousands of years ago or tens of thousands of years ago and that there's you know there's something about maleness and again it's not like obviously there are exceptions to the rule right but in general the average man is going to be you know there's gonna be a certain way faint ways that the average man is going to be different than the average women and if and maybe men just for whatever reason go are going into programming computer science in greater numbers and women I mean that's it's gonna happen that's just nature you can't try to pretend that doesn't exist well this is evolutionary

114:12psychology this is something that's been studied because but looking at human beings and the choices they make based on their gender based on their environment based on there's a host of different factors so yeah to deny that does seem yeah and and no-one's talking about obviously there are gonna be examples that don't fit that that corner because there's but there's always outliers but when we're looking at numbers in a job you're looking at you know the totality that you know and so if there's only 10% women to say well we need to make it 50/50 because half the world as women is the ridiculous that's like if the UFC said listen we need more women fighter so we're gonna fire some of the men that are way better fighters and we're gonna hire more women fighters to make a more diverse lineup even though there's way less women interested in fighting I'm sure I'm sure

115:02that because obviously I mean I I'm amazed that there even any women really that want to be fighters but I mean obviously there's gonna be some but the vast majority of women that I know they might like watching other men fight but the last thing they want to do is step in a ring but ask me because that's mostly a masculine thing right that type of violence you know most women not that doesn't mean there's no women that want to do that of course there's gonna be women it's a good example because they're outliers and when you're just looking at it without any discrimination you just looking at the this pursuit and trying to figure out which genders are more likely to enter this pursuit whether it's being a lumberjack or a miner or whatever you could say all the factors you want to look well maybe they're worried about this termination of other men on the job

115:44maybe they're worried about being sexually harassed maybe they're worried about this whatever those factors are there's a lot more women that are interested in other pursuit of course nursing and yes but then and then when the government comes in and just says oh well the numbers are this and now we have to fix this because this must be the result of discrimination yeah when it's not it's just the natural result of people acting freely but it's also people's response to that they almost can't have a measured objective response like the woman who's the CEO of YouTube said that she was very hurt by that memo and that this guy was a misogynist to create that memo meanwhile she's the CEO of YouTube like she is like an example of a woman that can succeed it does succeed because she does have the person happy and also you know I don't like this idea when you say you

116:31know oh I was offended right it's like hey you know you don't have a right not to be offended I mean look you know you have to be a little sensitive you have to have a thicker skin you know people are gonna say things that you offend that are offensive to you that doesn't mean they don't have a right to speak their mind you know people I mean that's you know you a lot of people now all of a sudden freedom of speech just taking a back door to my sensibilities I'm right I don't I don't want to be I don't want to be offended because it's cheap way out it's a cheap way out to just say I'm offended and then people have to sort of act we asked and they have to figure out some sort of way to to you know calm down your your offended personality or your your whatever it is about what you've done mm-hmm yeah and you know no one as I said earlier I mean you don't have a

117:15right not to be offended you know and there's gonna be a lot of offensive people in the world and and and the reason that you defend people that are being offensive is not because you're defending what they're saying you're defending your right to be offensive to other people because look there are a lot of people let's say we talked about the Socialists there could be a lot of socialists that are offended by the fact that I believe in the free market or people might be offended that I think people should have a right to be able to discriminate right so but so now if I'm not gonna protect somebody else's right to free speech then they could take away mine because I don't want the government determining you know what's offensive and what's not I don't want the government saying this speech is protected in this speech is it cuz the minute you go down that slippery slope

117:56you know the next thing you know you know all the libertarians are now fascist and none of us can speak right and they you the government gets more and more power and they try to shut people up that want to criticize them that's truly shrinking government and truly letting the marketplace of ideas decide what people do and don't do in which way they gravitate yeah and as I said I think the free market and competition will punish racist I think their businesses will fail I don't think they're gonna succeed as well as people who are broader minded who are looking beyond sex and looking beyond you know race and just hiring based on ability and based on you know all those other characteristics that are that are relevant to the job performance and to the extent that there's going to be a disparity if there's gonna be certain occupations that are mostly men and to

118:44certain occupations that are women it's not because of discrimination and in fact if you look at this nonsense about you know women are paid like 70s whatever cents for every man which obviously that's not true because that was true I would only hire women and pay them 77 $7 I mean if you could actually hire women cheaper than men I mean I know I would why would I even how would I ever hire a man I would only hire women I've had this conversation many times the people that really believe that you really believe in the gender pay gap there is no gender pay gap I mean if you isn't that an amazing statistic that even the president like when Rama was president he was saying that in a speech knowing it was disingenuous yeah I didn't know it appeals to women to get their votes but you know if you if you if you basically correct for all the choices right so if

119:35you take a woman who's let's say 40 years old never been married man 40 years old never married basically the same educational background you know and you study you'll find that they pretty much make the same right it's that when you look at the choices that the typical woman makes during her career and you know even if it's the same occupation let's say they're both lawyers and they both went to the same law school even if they both get married the chances are the woman you know took a back to me took her law career and it became secondary to her children she she worked fewer hours she didn't travel as much she got herself off that track and went on more of a mommy track because not now do all women do that no but more women are likely and and and they prefer that right they prefer so they don't they don't work as much they don't volunteer to travel as much and

120:27it's because of the choices that they make along the way that they end up earning less money than their male counterpart not because somebody is just discriminating against them because there is a competitive market I mean if you are a woman that is working just as hard as a man and you're sacrificing everything for your career and you know you're gonna you're gonna earn the same as the guy I'm because it's a competitive market especially for those higher skills I mean you just can't under pay people in the marketplace because somebody else will outbid you but it's like a convenient talking point it is it's the lie of its it's the left it's how you get votes like hey you're getting paid less because you're being victimized you're being discriminated against so vote for me and I'll fix that I will force your employer to pay you money and that's you know obviously you

121:13know there's that Willie Sutton was one of his famous quotes was you know why do you rob banks well because that's where the money is right so the votes are with employees much more people have jobs than create jobs right so if you're trying to get the in votes votes of the employee that's better than getting votes of employers so a lot of people get votes by promising to force their boss to give them something you're gonna get more vacations you're gonna get more sick days you're gonna get time and a half he's gonna have to do this well all that you know not the employer doesn't give you anything so if he's gonna give you more vacation it's because he's gonna pay you less and wages I mean it's all a trade-off I mean when the government mandates certain benefits all they're doing is taking your choice away to negotiate how you want to be compensated because ultimately the

121:57employer is not going to pay you more than you're worth and if you say well you got to give this person you know these vacations or you got okay well I got to pay them less money so I can give them the vacations it's all one big compensation package what seems like it's a political thing again it's a thing that people do in order to get you to lean towards them more and to have you feel that to have people feel that this person is looking out for my needs this person is looking out for my point of view in my perspective and he understand the plight that women go through whereas Peter Schiff he's so hardcore you know this capitalistic that he doesn't even care about what women go through war discrimination yeah and it's like the reality is if I didn't care about women I wouldn't care about these laws I understand how these laws backfire and hurt women I

122:40understand how you know all these laws that are meant to do good actually do harm and that's one of the reasons that when you find a lot of liberals they actually think conservatives or libertarians are bad people right because they say hey you're against this law you must be a bad person because this law is gonna help people in their mind you are right person just otherwise I would support the law right see when I think about most liberals I don't think they're bad I just think they're misunderstood they're misinformed they're ignorant they don't understand I guess they're good people but they're going about it in a bad way they don't understand that the road to hell is paved with good intentions I don't want to go to hell I don't care how many good intentions you have if I know that that road is going to hell I'm gonna try my best you know to build a different road right

123:22and I believe that free-market capitalism is the best way to raise the standard of living of everybody whether you're woman whether you're black whether you're homosexual it's the individual acting freely that's going to be your best hope if you're gonna empower government and this is one of the things that you know never I can never figure out because people are again they're very suspicious of businesses and businessmen yet they can have complete trust in politicians disgustedly you get politicians all this power and then you trust them to use it but evidently I mean why aren't they just as corrupt just because somebody uses politics to get rich doesn't mean they're on some moral high ground well if it's worse this idea that if you give it more of your taxes that the government is somehow another gonna be competent with how they distribute those taxes and that there's some gonna be

124:10egalitarian they're gonna use the taxes for good like that it's a very disgusting sort of an idea and the sensible or the idea that government is gonna make better decisions for you or your family than you are right I mean the government doesn't even know you they don't know your kids yet you're gonna they're gonna decide you know what they eat or where they go to school or you know know that the people that care about your kids are you right you care I mean look at these lousy schools that unfortunately that's why so many people vote for Bernie Sanders is because they went through these government schools and they got a lousy education their teacher is a socialist that's all the whole socialist this system but the parents are trapped because their taxes are already paying for these lousy schools they're monopolies you know and so but if the Liberals act as if well if we didn't

124:56have government schools then parents wouldn't educate their kids of course they would you don't think they would send their kids to private schools and they'd be a lot less expensive and you'd have all kinds of entrepreneurs who are trying to earn money educating poor kids just like people earn a lot of money clothing poor kids and feeding poor kids and and housing them I mean if there's money to be made and entrepreneurs gonna come in and satisfy that desire so you against public education or do you think that what do you think it shouldn't be subsidized the way it is like especially colleges well III think that government education is much too expensive and not good enough I mean people think that oh we need the government to educate and I think you know education is very important and I don't think it's so important we just shouldn't leave it up to government I think that the free

125:40market does a better job of creating computers right I think it'll do a better job of creating education and people are struggling they really like the idea that at least education is free for their children it's not free every nothing that the government provides is free it costs money right where's that money coming from your Dickinson the government has to take money and the stuff that you get for free from the government is very expensive the stuff that you get from the free market that you pay for is much less expensive and it's a much higher quality now you know the problem with colleges right we have a lot of colleges that are not run necessarily by government but why are they so expensive because the government subsidizes university tuition by either guaranteeing loans or directly providing loans to students and this drives up the price of college the reason that college

126:26is so expensive is because of government subsidizing the cost so there is no free market to control the cost you just have the government to subsidize the ever escalating costs and providing all this money so now you know people go to college and they graduate with a mortgage without a house that's that's the government that's did that but you have these Liberals they think the government is helping them like the liberal will say vote for me and I'll make sure you get a loan so you can go to college well the only reason they need a loan is because the college is so expensive and why is the college so expensive because of the loans you know I mean my father went to college and his parents didn't have any money because they were poor right middle lower middle class but so he worked his way through college by having a summer job and that summer job was enough to pay for everything room

127:13board tuition and all of his friends worked their way through college why can't Americans work their way through college today because the government made college so expensive because of all this all the loans but what happened is the government said hey you don't have to have a job while you're in college we'll just we'll just guarantee a loan you know and you'll just be able to borrow the money but you know graduating with a bunch of debt doesn't do the kids any favors they would have been better off you know you know paint you know having a summer job instead of like you know just partying all summer or taking bumming their summers around Europe while they're borrowing money well it's two giant issues with that one one giant issue with the debt is you're getting out of college and you're gonna take a job that's probably not gonna pay you a whole lot in the first place and you're

127:54saddled down with who knows how many thousands maybe even hundreds of thousands of dollars worth of debt and then on top of that you can't even go bankrupt and dissolve that debt it's the way this country that you're stuck with forever it is terrible kids take on this debt when they're 17 18 9 and not making good decisions so they're terrible decisions they're horrible decisions look you know they don't understand they don't anything about money they're poor consequences yeah and they've been fed a lie that well you know if you don't go to college your life is ruined you never you know I knew I you know do some of my videos on my channel my youtube channel and and one of the videos that I did and I wish it got more views and maybe it will be talked about on your show what does 90 tube channel tell people Peter Schiff you know Peter strange yeah my name is you know the shift report but

128:37one of the videos I did and I call it's a is a college degree worth the cost you decide and III did this like four years ago down in New Orleans and I went down the street and I was asking people who were working I didn't talk to people who are just there to have drinks I worked to the people who were working on Bourbon Street right they were strippers they were bouncers they were pedicab drivers they were bartenders they were taking out the trash cans and I indiscriminate I asked everybody I saw and almost everybody I talked to is on this video I mean very few people didn't make it and I basically said did you go to college when did you graduate right what was your major and how much do you owe right and every single person that I talked to that was doing a menial job and some of what some of them had two or three degrees right master's degrees and this is all and the point was and some

129:31people thought I was trying to make fun of the people and I wasn't trying to make fun of anybody I was trying to prove a point that this was a complete waste of time and money that these individuals could have done these jobs without college they could have done it right out of high school without all this debt and that just having these degrees didn't mean anything who benefited from these degrees the universities that sold these overpriced degrees they benefited the you know that that's who benefits from all these college loans not these kids who borrow fifty thousand dollars and now we're emptying trash cans because they got some liberal arts degree that's meaningless it's the university's a college that got to over got to overcharge for a degree that the kid would have been better off without and then there's also the opportunity cost you know you spend five or six years now

130:14and he's overcrowded colleges you know you should be four years but now it's so hard to get the classes that sometimes it takes you five or six years to even graduate and you graduate with nothing you've got a worthless degree you got politicians that are saying everybody needs to have a college degree okay well if everybody has one what's it worth nothing you know at one point maybe one in ten people had a college degree because and then it actually meant something because you had something that not everybody else has but you know if everybody has a degree then you've actually destroyed the value of the degree and that's what the government has done they've made a degree extremely expensive to get but there's very little value and you have all these politicians or not fault is maybe colleges they'll try to say look at how much more money people make you have college degrees

130:54versus people who don't have college degrees and they assume that the reason for that is the college degree again it's false statistics right because think about the typical person who chooses to go to college they're smarter they're more ambitious they're harder working that's why they're making more money not because they have a degree right so if you probably looked at two individuals from the same circumstances maybe same Skule same demographic they got the same GPA they got the same you know uh SAT scores one went to college and one didn't and then you followed them you might find that the guy that had you know the gumption to skip college is actually making more money than the guy who went to college maybe he started a business maybe he he gained some real world experience and then he wasn't encumbered by a bunch of debt right so it's not the college degree at this

131:43point no yeah if you want to be a doctor sure you got to go to college or you got to go to med school but there are a lot of things that you don't need a college degree to do and a lot of people who are doing them have college degrees and their success is not a function of that college degree it's a it's a function of the hard work that they did after they left college well education is very important but you can get a tremendous amount of education today and this is not you know the 1800s you can get it online oh yeah through books you can get it through audio Corvina I'm not so much I know a lot anti-education I think people should educate themselves debt and your entire college debt I know people died the government's saying the only way to get educated is to have a school do it I mean you know there are a lot of Americans we talked about you know

132:26robert e lee but you go to the founding fathers a lot of these guys were all self educated men they didn't necessarily go to college some of them did but a lot of them were self educated and believe me back then educating yourself was pretty hard I mean the only books you had were the ones that you could check out of a library I mean now anybody any kid in a poor inner city has everything at his fingertips you could go on the internet and you can teach yourself and in fact professors can sell courses online you don't have to you know go to a college I professor can have a tutorial site and he could charge like you know ten bucks a month and he could give lectures and he could teach you can learn all sorts of stuff without enriching some government bureaucracy some college or university and you don't have to borrow tens of thousands or hundreds of thousands of dollars to

133:12learn what you can learn for practically nothing on the internet yeah speaking of you know I know we've spent a lot of time here but I can't let you leave unless I ask you this one last thing what are your thoughts on crypto currencies specifically Bitcoin and all these different yeah and I know let's talk about that and let's know hopefully we have enough they're really hash this the subject now cuz I know you know I was on your show a few years ago and we talked about crypto currencies and you know I was very skeptical about them then and I'm as skeptical about them now but of course obviously had you just bought them when I was here a few years ago it's skyrocket right I mean obviously if you bought them back then you could turn around and you can sell them today for a lot more money right so but does that mean they're going to work does that mean they are going to fulfill

133:58the promise that everybody believes right and what is it that people believe about Bitcoin and you know they believe that it's going to be money right that is going to either replace or exist alongside of the dollar the euro the yen right that it's people are gonna use it as a medium of exchange just the hope that it's gonna be a store value and there it's just not going to work it is not going to happen I know there are a lot of people that believe this and they almost believe it like a cult right they believe it like a religion and the fact that I don't believe it I'm just you know I'm either a fool I just I'm stuck in my ways I just don't get it you know and you know look you know I've seen it all before when it came to the dot-coms when it came to the real estate and it's not that like III did a podcast again on my own and I was trying to compare I was

134:48I was looking at the internet stocks and I was talking I used pets calm as an example and I you know looked at Bitcoin and then somebody did a video critical of me trying to explain that why bitcoin is not like pets calm and I never tried to equate the two what I was talking about was the idea when pets calm was started and people were making money because the stock went up right they thought that the business would succeed as a business that it would make a profit right now it never did it went bankrupt but people bought it early on and it went up now the fact that it went up didn't mean that they were right in their ultimate bet it just meant that other people made the same mistake and paid an even higher price and so you can be wrong but still profit from being wrong as long as there are other fools who are also wrong and that's where I see the similarity in the crypto

135:39currencies where a Bitcoin if somebody bought Bitcoin a year ago two years ago five years ago and it's now higher it's only higher because other people are more foolish than they were and other more people now believe something that's not going to happen why do you think it's not going to happen what do you think of the restrictions okay so holding it back all right so people have to understand what money is and what can succeed is money right because yes dollars and euros and yen intrinsically there's no value there it's just a piece of paper and they're created out of thin air but they didn't that wasn't always the case I mean the dollar used to be backed by gold and what gave the dollar value was the gold backing that's why it had value because you can go and get gold for it you can convert it to gold but gold right the reason that gold became money

136:29and a lot of things have been money and the most the what's been money the most successful has been precious metals people have used precious metals and gold has just been that the most precious of the metals that has served as money but the reason that gold became money and because before we had money it was all barter right that's you know you know you if you if you made chairs and you wanted you know a chicken you had to find a guy that grew chickens who wanted one of your chairs right yeah it was very inefficient barter but everybody wanted gold or at least wealthy people wanted gold it was a scarce item that everybody desired but the beauty of gold was that it's all the same you can melt it down you you know an ounce of gold is you know you know is the same as any other ounce of gold and people realize that wait a minute instead of me looking for a chicken guy that wants my chair

137:24I'll just go you know give somebody gold they don't need my chair they can buy whatever they want with the gold right because gold is a commodity too it has value but unlike a chair it's uniform you can put it in your pocket you know and and they're all the same and you can divide up so gold had these properties that made it money and it was a store value and then you know over time there was pricing people could relate how much is a barrel of oil terms of gold how much is a bushel of wheat how and there you can relate one commodity to an other and understand pricing right like you know in in roman times you know you could buy a toga a nice toga for an ounce of gold right so a man a man could buy what was clothing back then for an ALICE to go would you come buy a suit of clothes today a nice suit of clothes for an ounce of gold so you know prices have

138:15kind of remained relatively constant in certain things so now years ago I guess some libertarians and some other people got the idea you know cript fiat currencies are no good which is true they're not backed by anything government's keep printing them they got quantitative easing 0% interest rates Gold though they said gold is inefficient right if I got an ounce of gold I really can't use it in commerce I mean I can't scrape off a little piece of it and buy a cup of coffee I can't send it across the world and you know and and and conduct in e-commerce so they came up with someone came up with a digital currency and it's the first one probably being Bitcoin which was supposedly replicating all the properties of gold only digitally and making it better right so it's like you know you mine these bitcoins right even though there's no actual mining you're

139:03solving these math problems but you can have it Bitcoin I can give it to you you can give it to me I can break it in half intense you know and it's divisible it's you know it's portable and you know it doesn't decay it doesn't go away right and so they're saying hey wait a minute we can create a digital alternative to gold and use that people will just use this and people will just get out of dollars and they'll own Bitcoin and then we'll just use Bitcoin as money right and that and the idea is this is going to happen but it can't happen because there is no value that ultimately Bitcoin has that can be stored right it because unlike gold gold actually has properties that that you know you can use gold for all sorts of things people value gold for the metal nobody values Bitcoin for the Bitcoin they value it because they believe that they can exchange it for something else there's

139:54dollar doesn't really represent gold anymore I know it doesn't but just because the dollar is working as money with all the history of usage and the fact that the government accept dollars as taxes it's legal tender that you have insurance products that you have rental agreements that you have bonds you have an entire global market in in dollars right that is never going to be able to develop with Bitcoin or any other cryptocurrency ultimately the the value of a cryptocurrency is based on the willingness of somebody else to accept it in exchange for you know for something else and you know when Bitcoin first started and people used to tell me well you know there's only 21 million bitcoins right you can't have any more than that so therefore there's some scarcity but my point was that well but what stops somebody else from creating another cryptocurrency that is identical to

140:47Bitcoin or maybe it's even better maybe it's faster maybe it has properties maybe it improves on Vic just like we talked about cellphones earlier somebody makes a better cell phone what's your what's your old Motorola phone worth today is nothing right so if somebody comes up with a better cryptocurrency then what's your Bitcoin worth but you know I don't think any of these you know you have like a thousand of them now the market cap is about 150 billion for all these crypto currencies and now there are people that are saying look you got to buy a bunch of them you need a portfolio because you know you're not sure which one is gonna win none of them are gonna win they're all gonna lose because none of them are going to work because they're there and there's no store value you know people are not using bitcoins and nor will they ever use bitcoins as a real medium of

141:32exchange people use it as a speculative asset people buy it they hope it's gonna go up in value yes can you sell your bitcoins and then buy something with the money yes you can do that with any asset you know people make a big deal about the fact that my gold companies shift gold we accept we sale we accept Bitcoin we don't really accept Bitcoin right what we accept is dollars but we make it easy for people to sell their bitcoins to buy dollars by using a service called a bit pay but they're not actually using their their their uh their their Bitcoin they're using dollars they're selling their Bitcoin and then they're then they're trading dollars I mean for Bitcoin in these little ultimately works right it's not going to work because I mean that is ultimately working you can use your Bitcoin and you can purchase gold with a bit no you can you can sell

142:20your Bitcoin to buy dollars and then you can use the dollars to the Bitcoin which meant nothing is worth dollars no no you sold it you sold your ass look I just solved nothing to get dollars no need to take those dollars and you buy bit no you fool you sold something you so let it be so it's something then but it's yes but you can sell it today for value but it might be worthless tomorrow I mean right now it's not because somebody will pay you for it that's real it's the same thing as a share of pets calm at one point somebody would give you a lot of money for that stock and now they'll give you nothing you know it's all about perception I mean there's always value in gold and I hear people telling me this well you know gold value is subjective no it's not its objective gold has value because it satisfies certain desires or needs it has properties that exist in the

143:09physical world and there are things that you can do with it the only thing I can do with my Bitcoin is give it to somebody else but I know people think oh but the blockchain is so great maybe it is maybe the blockchain is a great invention and maybe over time a lot of assets will utilize the blockchain in transactions but it doesn't mean that just because bitcoins utilize something of value that the Bitcoin itself has any value that is going to endure to the owner of that Bitcoin especially you know when there's an infinite number of coins but here's something interesting because you know the idea is hey you know we need this digital gold because gold can't be used in commerce the way Bitcoin can the irony of it is it can write there's a company and you know it called gold money gold money calm and you can go there and you can open up an account you should everybody listens you

144:00should go to gold money calm you can do it on your cell phone on your app and what they do right is they allow you to buy gold you can also buy silver and platinum palladium other things but let's just focus on gold you can buy gold they sell it to you for 1/2 of 1% / spot very cheap I've been in the gold business my whole life I've never sold gold that cheap you own the gold they will have it stored for you it brings vault of your choice and you have different locations in Switzerland and Hong Kong and Singapore and Canada you can pick where you want your gold stored and now you own that gold right it's in your digital wallet just like you could have your crypto currencies in a digital wallet but the difference is you can take the liver of that gold whenever you want it the minimum is 10 grams of gold which is a very small quantity and they will mail it to you if

144:45you want it but the purpose of it is not to have it mailed to you you keep it in your account now you can give that gold or any portion of it to anyone you want anywhere in the world for free I can just transfer my ownership to somebody else so now there's commerce if you are a merchant and you want to price your product in gold you can do that and I can pay for the product using gold and you can accept gold in exchange for that good or service so it makes it so that now gold can actually work in today's modern economy through the internet it's now is easy for me to spend my goal I can use my goal to buy a cup of coffee I could use my goal to buy a car right so like and in the short run right now I'll show you this car that I have in the short run let's assume that somebody is on a gold card and it's an actual gold it out I've actually go yeah this is heavy yes because gold is crazy

145:39because gold is a real element you have a gold credit card there's a gold MasterCard ladies and gentlemen this is a gold money MasterCard and this is this is heavy like listen yeah it's I mean compare that to just a plastic one oh it's crazy yeah it's like a hundred of these yes that is real listen to this folks yeah yeah it's this is gold whoo I need one now it's my life well you got one god we will make you one I needed to get you one well the idea is very up let me let me finish just on this one point so in the long run right I believe that we're gonna go back to a gold standard I believe and it's not just gold money but gold money might be the first company to do that but there may be more that'll do it later on but I think that government fiat money does not work dollars won't work euros won't work yen don't won't work but gold works gold has worked for thousands of years

146:29but now with the internet it works even better and so I think that a common goal like through gold money gold money will do to fiat currency what the FedEx did to the post office what uber is doing to taxi cabs it is the free markets alternative money that government can't create out of thin air that will hold this value over time and now thanks to the internet we can be used in commerce but in the mean time right so I've got gold that is stored in my gold money account but let's say I go to a merchant who doesn't want gold because he doesn't know any better he just wants to be paid in dollars I can use this debit card right to buy something and is that a debit card or a credit debit card a debit card yeah but it's a debit card you can't tell the difference right but what happens is I can spend my gold using this card so I can sell off basically just like you know when people are doing

147:21with bitpay but I don't need bitpay right I can go to any merchant in the world that accepts MasterCard and my gold will be sold and the merchant will get dollars right so I can spend my gold now but the merchant is actually not getting rolled is getting dollars but I believe in the future the merchants gonna want gold he's once we start to get a currency crisis once we see the euro and the yen blowing up people are not gonna want to sell their goods and services for paper money they're gonna want to sell it for real money now there are people think well they're gonna want to sell it for crypto currencies no they're not I think these crypto currencies are gonna crash before the fiat currencies I think they're gonna make fiat currencies look good which is unfortunate because you have a lot of good people who are putting their faith in these crypto currencies and they're

148:08gonna get burned and then the government's gonna say you see we told you the free market isn't any good you know you got to trust us you got to trust our paper money no I'm gonna trust gold I want to trust a private sector and if I can use gold why would I use anything else now I know people say the knock that the Bitcoin people say is that well it's not decentralized because somebody has to store the gold right where's nobody right of course because there's real value there but you know what Brinks has been storing gold for over a hundred years and they've never lost an ounce so look I trust Brinks to hold my gold but they're holding it in a way that I can spend it you know back in the day right the first currencies that existed were created by private banks right not the government and so a bank would have gold or actually even before that it was the Goldsmith who would have

148:54gold you know that he was storing and he would write an IOU and you know and the person would say hey I've got gold stored at this Goldsmith that piece of paper right instead of going back to the goal Smith and getting your gold you can give somebody say hey look I owe you money take this note because the gold is there that you can go get it whenever you want but here's a piece of paper put in your wallet it entitles you to that goal and that piece of paper could circulate as money not because it has value but because it's backed up by the goal and so eventually private banks started issuing currency physical paper currency that was backed by the goal that they had well what we're having now in in in with gold money is gold money is like the Goldsmith they're storing your gold but instead of giving the person that the piece of paper that you can go back

149:42you actually get ownership you actually transfer so if I was gonna give you $100 with a gold from my gold money account to your gold money account you're gonna now have title to that gold it's changing hands it's gone from me owning the gold in that vault to you owning that exact same gold now what's your gold you can do whatever you want with it you could take delivery of it and have it in your hand or you can use it to buy something else it's perfect money it's the free market money and we could use it costless I mean it's gonna be cheap it's cheaper than MasterCard Visa it's a very inexpensive way for people to trade across borders because it doesn't matter what country you live in gold has value in every country you don't have to worry about the yen or the euro or the dollar hey I'm in Germany I want to sell my products I can price them in gold and gold is not very

150:27volatile both is relatively stable over time you can actually price a product and get paid in gold and you can store your gold and a year later two years later you know it's gonna have value you could look at the historic value of gold so rather than trying to reinvent the wheel you know they used to have something they called an alchemy you know hundreds of years ago the alchemists tried to make gold out of base metal and they couldn't do it I look at these crypto currencies as modern day alchemy they're trying to digitally recreate gold and they're not going to succeed they're just creating digital fiat this is fool's gold yes people have made money speculating on other people's ignorance and other people's greed but it's going to end very badly but I do believe that you know what they're doing to gold money and what the Internet is enabling is that we can have real money we can use

151:14gold now in a way that you know our forefathers never could this is a real modern-day gold standard 2.0 gold will worth work better as money today than it's ever worked before and it worked great in the past I mean we thrived America was built on a gold standard the Industrial Revolution happened on a gold standard we produced the wealthiest country the world had ever seen on a gold standard right we've become broke right with his Fiat standard we've squandered the wealth that we created under a gold standard but this is a way you know when Nixon took us off the gold standard in 1971 he said it was temporary right well we don't have to wait for the government to bring us back to a gold stone you could do it on your own right you can put yourself people can now move to a gold standard you can earn companies can pay their employees using gold money they can pay them in gold

152:01people landlords can collect rent in gold I mean what we can have an entire society you know right now we're being sidetracked by this you know the budget is bubbling in the crypto currencies but the people who are buying these crypto currencies should be buying gold and of course what they can do now is you know if you happen to have some crypto currencies you can sell them you can go to gold money they'll take your they'll let you convert your bitcoins or all coins or whatever whatever you got you know ether whatever crypt that you can go and you convert it and you could buy real money right and then when this bubble pops you know you're you're you're you know you're not left holding the bag there's a lot of people I think unfortunately are gonna end up losing a lot of their real you know their money their purchasing power they could have bought gold but instead they bought you

152:42know pets calm and and they didn't they didn't realize that that's what they would what they were buying I'm sold Peter Schiff I like the car if you just get people to hold on to that yes but I've got in their hand they're like this is a real thing yeah I mean yeah always complained about the loss of the gold standard I mean that's a long-standing complaint you go back to the Constitution right Gold is money in the Constitution it says that no state shall make anything but gold and silver coin legal tender payment of debt the federal government is only given the power to coin money what are they coining gold and silver I mean that that is is the standard that you know we have you know the first time we mentioned a civil war the first time we ever had paper money in America was during the Civil War and the the Union issued it but it was the greenback it was backed by gold and when the war

153:27ended they stopped issuing them but they issued it based on an emergency war time power it wasn't that they had the right to do it legally they said look it's a war we need to win this war and so that's the first time we had paper money then it went away it didn't come back again until 1913 with the Federal Reserve is it really possible this can make a return what what can that gold standard can actually be something that we all go off and I am convinced that we're going back to a gold standard but I think the free market will lead the way because if people start rejecting government money right if they start rejecting the dollar if they reject the euro if they reject the end then what is the gummer gonna do I mean the source of the government's power really is the money they spend that's where they they buy their votes and they peddle their influence but if

154:11if individuals and merchants just start saying no I don't want that paper money you want to buy my products pay me in gold right you want my services pay me in gold and if more and more people start opting out of that system and just start working in a gold back money which we know works right we don't need the government to make gold money gold was money long before the government came around what the government did is when they took over money right that's you know they would debase it right that's where that the term comes the government would start they would make gold coins and they would stick copper in there or other metals because they would try to create inflation but when you had private money you know it was it was gold and so we don't need the government the problem is these crypto currencies they're being marketed as the private sectors alternative it's not gold is the

154:55alternative but we now have it we you know we now have the method of using gold right cuz like what I have this this in my wallet right missing water heavy yeah I but I can carry if I have a hundred thousand dollars worth of gold I have a hundred thousand dollars in this wallet it's here and I can use it to buy a pack of chewing gum I could use it to buy a flat-screen TV I can use it to buy a car right so I can buy tiny things with it I could buy expensive things with it and here it is I'm carrying it around right and I can use it through my cell phone I can take my cell phone and pay for stuff and ownership of my gold will instantly transfer to a third party and of course if you want to gift money if I want to give money to my kids I can give them gold then they can spend it right they can spend it using their debit card or they can directly spend it so this is

155:42the real alternate this is what these crypto currencies are promising to be but never will be but I think a lot of people are getting greedy a lot of people think all these things are gonna be worth a million dollars a piece and you know pie in the sky and it's like that greed overwhelms them and they can't think rationally you know and anybody that doesn't agree with them doesn't get it and I had this you know the same mentality permeates every bubble people can't think rationally and you know as the price goes up you just become more emboldened in what you believe because you're getting rewarded by the market for your mistake but you don't think it's a mistake because you're getting rich and you're looking at people like me Hey look you know Peter he's not by he look at all the money he's not making he's a fool he should be buying these cryptocurrency so

156:23you know that there's an old expression to don't confuse brains with a bull market there's certainly a bull market in crypto currencies I think it's a bubble and I think the people who are making money some of them are gonna get lucky right some people are gonna cash out and they're gonna make money but the money that people make is gonna match the money that people lose because you're gonna have a lot of people who are gonna come in late to the party they're gonna buy and they're gonna be left holding the back now of course there's gonna be a lot of losses that aren't real money let's say somebody bought Bitcoin a few years ago and they paid $1,000 and now it's worth a hundred thousand but they haven't sold because they think it's going to 10 million right if it goes to zero all they lost was a thousand right even though it was worth a hundred thousand but mentally

157:04they lost a lot more because hey they fought they had all this money right and mentally they got used to have L and it's gonna be even more so there's gonna be a lot of dreams that are gonna be shattered right cuz a lot of paper profits are gonna just go to money heaven because they're just not going to be there but ultimately the only real money that's going to be made is by the people who cash out because because this is just a you know a self-generating Ponzi scheme it's all about you know needing new people and that's why I think a lot of people into the crypto currencies they get so upset when somebody like me doesn't get it because they need more people they need a bigger market they need more buyers to come in to keep paying a higher price to keep it all going and so if somebody comes out in Kies and you know say the emperor has no clothes you know because if a lot of

157:49people decided they wanted to sell their crypto currencies the price would collapse and then what would happen I mean what happens if Bitcoin goes from four thousand two one thousand how do you now make an argument that it's money how do you how do you console the people that bought it at 4000 and now it's at 1,000 and then what if it goes to 100 and then what if it goes to zero now you know there was a time Bitcoin went up to a thousand and then it went down to 200 and then it rallied so now people are convinced okay well if it sells off its just gonna rally back what if it doesn't it does it doesn't have to come I can keep on falling especially since there's so many crypto currencies now that compete with Bitcoin right I've said you know how many people search on on Yahoo versus Google I mean Yahoo was before Google or how many people are on myspace today right I

158:36mean you know no people are on Facebook so how do you know that that that Bitcoin isn't the the myspace of cryptocurrencies but again I don't think any of these crypto currencies will work but I do think they will work if they back them by gold you can have a crypto currency backed by gold the only problem there is the government won't like that because that'll work so well that the government will shut it down the government will go and so that's why I like how will they shut it down well they might say there's money laundering going on you know but that's why gold money see gold money does all the know your customer they know all the kayuu kyc so when you open up a gold money account and you own physical gold they do make sure they get your photo ID they get all this information on you so they're there they're complying with government rules and regulations so

159:18there's no there's no nobody's extorting money using gold money there's no criminals I mean that is where and I've you know people have argued me I've pointed out that yes the one place that bitcoins seem to be used as money is in crime right if I was going to blackmail you and I was gonna threaten to shut down your podcast unless you send me some money I can demand payment in Bitcoin and the reason I'm doing that is because of the anonymity I think that you know I can get away with the crime and I don't care if the Bitcoin loses 20 percent of its value between the time you give it to me and the time I cash it in because criminals are used to paying to launder their money they just want whatever they get is gravy but you know if I'm a merchant and I'm selling like I sell gold right I sell gold and my margin in my gold business is about 1% so if I sell gold for $10,000 I bought it for

160:07990 right I have a little bit of profit I can't afford to do that business in Bitcoin I mean the big coin can move 2% I've wiped out all my profit I've lost money I need something that is very stable but if I'm a criminal just distorting money doesn't matter so it can work for criminals but that's where the government's could crack down on it I gotta wrap this up so if people wanted to get involved in this what would be the best resource for them to get information how to get started well they should go to you know the website gold money.com just open up an account online and the beauty of this is - and you could do this yourself they have a referral program that as you refer people you send them your own link so once you open up your gold money account you get a referral link and now you can send it to your friend and now if they open up an account you get some

160:52free gold so you actually get paid and and and so as you educate people it's kind of like a marketing but they will compensate you in an extra goal and so and when you open up your account they'll give you a little free gold you get a little free goal for referring somebody that sponsor it on this podcast a little bit of free gold yes you can I mean like the number of people that you have on the pot again you can get a lot of free call this seems like you can have a big add my whole podcast was a big a big fake ad for free yet well it's well it's really for the concepts of freedom Gold is economic freedom right I mean that's like even Alan Greenspan that was the title of his essay gold and economic freedom but it is and you know the more people that we can move into their own personal gold standard the more people that can save in gold and the beauty of like a gold money account

161:40you have your money in a bank account what if the bank fails you know this money is Bank your gold is Bank but you own it it's not being loaned out to anybody it's in a storage facility with your name by Brinks so you can spend it when you put your money in a bank account they loan it out to somebody you know and you know me ask there's government insurance but so what they just have to print a bunch of money you're you you can bank your gold without having to put it into the banking system there's no balance that you have to worry about or bank failures you don't to worry about inflation doesn't matter how much money the government prints they're not mining any gold gold is gonna maintain its value so to the extent that you don't spend it right away it's going to gain value between the time you just deposited or the time you earn it and the time you go

162:22to spend it so it's a great store of value but thanks to the internet it is the best medium of exchange it's cuz it's so easy now to do it so you can get out you know you can promote it the people that listen to the podcast I mean and again there are other people that say oh Peter you know you don't like Bitcoin because you you're promoting gold money that you know iight up if I thought bitcoin was gonna work believe me I'd have been all over it right I mean III have a person of very high principles and standards you know I started selling gold long before I had a gold company I used to tell my brokerage accounts that you're Pacific Capital I would tell them look buy some gold and I would just send him to go buy it I didn't sell it and the money that they used to buy gold was money I couldn't manage you know I make money you know managing money for fee or commissions

163:03and if people took their money and bought gold I wasn't making any money but I thought they should buy it because it was the right thing to do and I got involved with gold money because I thought that they were onto something I thought that they were doing something big it's more than just about money it's about a crusade to take back our freedom which I think bullying begins with money taking the power away from government is rejecting the source of that power which is the money they spend to corrupt the economy so to the extent that more and more people I mean this is the most important vote it doesn't matter who you vote for in an election vote with your feet on the money vote away from the fiat based system and and vote in favor of gold right that's that that's the monetary system that our founders believed in that's what was embodied in the Constitution and that's what worked

163:44when you get that sweet car that's made an actual this week I feel good yes you get you can get a plastic card for free I don't want that but you have to pay for the gold heart but the beauty of it is it's worth its weight in gold so even though you have to pay for it you own that gold it's worth it yes cuz it's actual gold you can melt the downs good to have yes I mean you need to have one in my life people have people have to understand he what if you want to let me hold it one more time oh yeah I want to hold it Jamie yeah feel that there's not that many people that have those feel that that feels legit doesn't it actually better than a black card wait wait better the black bar you know what an they actually have all the cost years you know they sign up to you can get all those benefits too though like you can with American sign you as a nation yes

164:31yes they have the cost she air and they have all those programs so you don't give that stuff up you just have you just have real money you know behind you're just have to make sure that if you there throw it in a restaurant that you get it back I like it listen we're gonna come back next time you're here hopefully this will have taken off and you can you could say see I told you yes thank you so much man so play it faster really three hours yeah flew by no we started late it's been three hours yes we're good all right it was amazing thank you