Dr. Richard D. Wolff, professor of economics and author of Understanding Marxism, joins Jason Hartman today, discussing the global economic meltdown. Wolff shares his interpretation of marxism and why he believes that is has been poorly applied. As well, Hartman and Wolff discuss capitalism in America, the perception and the reality.
Wolff and Hartman discuss the disproportionate pay between CEO and workers. The CEO to worker compensation ratio has changed dramatically. Wolff states that a cooperative/directorship might work using the example of The Mondragon Corporation.
[2:15] Was Karl Marx's ideas applied wrong?
[8:45] "A liberal and a marxist are not the same things."
[10:30] What is a Marxist?
[12:45] Capitalism didn't make the break from fatalism and slavery that it thought it did.
[16:45] Did any country have genuine pure marxism?
[20:30] "There's a reason that a very small number of people are capitalists (entrepreneur) and a very large number of people are workers" - Wolff
[20:45] How do we solve the issue of disproportionate pay between boss/worker, redistribution?
[24:00] How would a company run with a representative republic, cooperative, or directorship?
[25:10] Successful Co-op, The Mondragon Corporation.
[31:45] What is the Yellow Vests Movement?
Jason Hartman is joined today by Chris Skinner, Chairman at the Financial Services Club and founder of Finanser. Chris has authored the books: Digital Bank: Strategies to Launch or Become a Digital Bank, Digital Human: The Fourth Revolution of Humanity Includes Everyone, and Doing Digital: Lessons from Leaders.
Jason and Chris talk about the future and the role that technology plays in it, or the lack of a role for humankind. This tech-talk touches on modern banking technology, how to start a bank with $50k. Lastly, robotics and philosophy. What is our purpose when work is in the hands of robots?
[2:15] Banks have been challenged technologically because they have not updated their systems
[4:00] Antiquated banking systems are often referred to as spaghetti structures that need updates recently forced by COVID-19.
[5:30] Big banks are too big to fail.
[8:00] What makes Stripe such a standout business regarding FinTech Companies?
[12:30] Everyday living is in the new hip and cool bank.
[13:45] Can anyone launch a digital bank?
[17:00] Switching gears to robotics and technology in the future.
[20:00] There have been two significant behavioral shifts immediately since this lockdown.
[23:00] On robotics and essential work, what happens when people no longer need to work?
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Jason interviews Chrysta Castañeda, author of The Last Trial of T. Boone Pickens. Get the oil and gas industry insight from Chysta, the go-to lawyer for high stakes litigation in the energy industry and beyond. Chrysta shares her experience with T. Boone Pickens and her knowledge of the current oil market problems.
[1:30] What happened with Pickens and how did the investment deal go bad?
[5:40] "As we saw the financial markets plummet, so did the oil market"
[6:30] Suadi Arabia and Russia are starting a supply war with oil, which was already oversupplied
[8:30] There is a coordinated market mechanism for oil production limitations
[11:40] Brief history about the name "Railroad Commission"
[14:00] Will we shift to a larger work-from-home community?
Hugh Hendry joins Jason Hartman to share what was going through his head through the 2008 recession and what preliminary actions he took to position himself well. Everyone is wondering “where are we going [market]” and Hendry shares some thoughts based on actions the Fed took over the last 60 years.
Hugh discusses the early signs of chaos that awaits us as we move away from an accepted form of order. It’s not always a perfect situation for investing, especially if you only have one mindset for profit. Chaotic times call for positioning yourself to profit from a different angle.
[2:00] 31.2% positive return back in the 2008 recession
[3:00] To be curious you have to misbehave first.
[6:30] Discussing the “boom-market in fear.”
[12:00] Everybody is wondering where we are going [market]?
[28:00] What is your stance on Paul Volcker?
[21:30] What is the FED doing wrong?
[22:00] Looking for predictions in gold, the dollar, etc.
[29:30] We are conditioned by the very slow passage of time.
[30:00] Gold has been trending.
[32:45] 50 years ago we were pivoting from chaos to order. Today, we are pivoting from an accepted order to chaos.
[34:18] We live in a world where instead of reducing the money supply, they are desperate to increase the money supply.
[38:15] In preparation, think of the most chaotic events becoming normalized, and how you can profit from chaos instead of order.
[39:30] At the bottom of a deleveraging cycle, everything is cheap.
[41:30] “May you live in interesting times,” -the quote is back.
Founder and former CEO of Build Direct, Jeff Booth, joins Jason on his discussion about deflation. Listen as best selling author of The Price of Tomorrow, Why Deflation is the Key to an Abundant Future, shares some of the knowledge from his book on deflation in the economy.
The Price of Tomorrow: Why Deflation is the Key to an Abundant Future by Jeff Booth
[2:00] There is nothing governments can do long term, deflation will win.
[5:30] Speaking about 2008, we should’ve ended up in a depression.
[6:30] Governments all over the world distort the market; they don’t allow price discovery.
[7:00] Elaborating on the “Ponzi Economy”
[8:00] Deflation makes your value of money go up because goods and services go down in relation to your money.
[9:00] Can deflation be responsible for inflation?
[9:45] Price discovery example scenario: Zoom went from 10 million to 300 million users in a month and a half.
[10:45] Why do governments fight deflation?
[14:45] Understanding the power of inflation as it pertains to paying debt, but how much power does technology have over inflation/deflation?
[20:30] Jeff Booth explaining his idea of doubling up.
[22:00] How can we understand exponential growth?
Pat Donohoe returns to the show to discuss how it is that an economy grows. The keyword here is debt. Debt is priced into everything and used for growth. Jason Hartman asks, “have the rules changes in an era of riots and civil unrest? Bailouts for everyone!
[1:25] Have the rules changed in an era of riots and civil unrest?
[4:45] Sometimes, you need contrast to understand the value of one system.
[9:00] If someone makes a poor choice, there is no bailout.
[13:00] Debt is priced into everything. It fuels the economy.
[14:45] If you want to create real wealth, you simply must have capital formation.
Today we are joined by a Libertarian Presidential candidate and former felon who won his freedom representing himself. Mark Whitney joins Jason Hartman sharing his backstory from outlaw to free man. As well, he speaks on the suspension of the 'campaign trail' due to coronavirus. Mark talks to some of the challenges running for president. As well, he speaks to the ease of becoming a candidate. Jason asks Mark what he expects to see in our future, whether that's inflationary or not.
[1:00] Backstory, from felon to free man.
[8:30] Politics has been suspended. The trail in 'campaign trail' is gone.
[9:30] What were the lessons learned by representing yourself in court?
[12:30] There are generally about 2,000 people running for President of the U.S.
[13:45] The presidential commission on debates is a privately owned organization. This arrangement is so we can't site the constitution to say that our political speech is censored.
[14:30] How can you run?
[16:30] Are we looking at an inflationary future?
What is the “dollar milkshake theory”? Brent Johnson joins Jason Hartman to share his ideas and concepts on macroeconomics. Particularly, what’s the strength of the U.S. dollar, and how does it compare to gold and other currencies? Brent also shares his thoughts on modern monetary theory and the possibility of its presence in the future, and potential problems.
Brent Johnson also discusses the broad term currency as it pertains to gold, the U.S. dollar, and many other currencies around the world. Brent shares his views on gold and the role it plays. As well, Brent and Jason discuss what is needed for money to be loaned into existence.
[2:00] Dollar milkshake theory.
[4:00] Discussing MMT Modern Monetary Theory
[5:30] Until a new system is designed, there is no place to go, other than the U.S. dollar.
[9:10] Does MMT work or is a pipe-dream?
[12:35] Let’s talk about gold and the role it plays.
[19:00] Because money is loaned into existence, you need monetary velocity or credit expansion to be taking place.
[22:00] What about military tensions?
[26:45] How delicate is our economy that corporate giants need bailouts as bad as family-owned restaurants?
Mike Robbins joins us for some important lessons in mental health and dealing with grief. We are all grieving together, for ourselves and for those that surround us. It’s time to stop, pause, and reflect. How can we focus on the moment?
[5:45] Perspective is important, and when we are in the middle of something, it’s difficult to have perspective on it
[7:30] Even though it may not seem like it right now, you have more than this requires
[8:15] If we are experiencing difficulty the common element is that we are focusing internally instead of externally
[11:30] The world has intervened in a way, and forced all of us to stop, pause, and reflect
[17:30] How do we focus on the moment?
[23:30] You can control your attitude and you can control your effort, everything else is some form of out of your control
Jason Hartman with guest, Harry Dent, for the rant of the year! “This is a bubble that is waiting to pop,” says Dent as he opens up about the Coronavirus just being a cover for some underlying economic issues. “This is much worse than a debt-bubble; it’s a financial asset bubble.”
Harry speaks on his thoughts about gold, cryptocurrency, and inflation. Specifically, asset vs. consumer inflation. What causes inflation? What’s to be expected in the future when it comes to commercial real estate? What will happen to the once sought after McMansions?
[1:30] This is a bubble that was waiting to pop, and Coronavirus was just the cover.
[2:00] All of this money printing does not stop the virus.
[6:00] There is no going back to normal after 25% of restaurants, and some areas closed down.
[12:45] China has already hit its peak. They’re going to have trouble keeping up with India.
[14:30] What is Harry Dent’s opinion on cryptocurrency, bitcoin?
[17:45] Gold correlates with one thing, inflation.
[19:30] Money printing doesn’t necessarily cause inflation.
[20:30] What does cause inflation?
[23:15] Asset vs. consumer inflation, that’s the bubble.
[25:00] This is way worse than the debt bubble; this is a financial asset bubble.
[29:30] Commercial real estate and McMansions will collapse while the 3/2 will go on to thrive.
[35:00] The first billionaires were born of the great depression.
Not a cryptocurrency, but a COVID-Currency. Jason Hartman shares news of a small town in Washington that has created their own local currency, something that hasn’t been used since the Great Depression. And as always, it’s good to ask, “compared to what?” This letter home from a college student couldn’t illustrate this principle more clearly when it comes to gaining perspective. Let’s step back in time for a lesson on the inflation/deflation shell game. Lastly, Jason talks about the wildly unsurprising news that the bidding wars for homes have left the big cities and moved largely to the burbs.
[1:00] Let’s not forget to ask one of life’s most important questions.
[2:45] A letter home from a college student, further illustrating the strength of the question, “compared to what?”
[5:40] A small town in Washington is printing its own currency during the pandemic.
[12:45] House hunters are swarming the villages and rural communities outside of NYC.
[15:15] Predictions of housing purchases in the suburbs rising faster than those of the cities.
[16:45] The bidding war has moved to the burbs.
[22:40] From an Alexa Flash Briefing, The Inflation/Deflation Shell Game.
[32:45] Playing some inflationary hypotheticals.
Jason Hartman speaks with a four-time best-selling author, and motivational speaker, Nick Adams. Today, they discuss how the U.S. will turn it around, and continue to be the greatest country in the world. How would things be different if Churchill had not been around, and what similarities can we draw comparing him to Trump?
[3:30] How will the U.S. turn it around?
[6:30] Is the United States of America living up to its potential?
[9:00] How things would’ve been different had Churchill not have been around.
[10:20] Comparing Trump to Churchill.
[16:25] Never bet against America
The key is to take action, but the purpose of today’s show is to explain why the actions we take make sense. Jason Hartman and Evan Moffic discuss the mortgage credit availability index, MCAI, and affordability. What has changed since 2004? Why would one wait and try to time the market? What’s the opportunity cost of timing the market?
[3:00] Discussing the opportunity cost of lost money by waiting and trying to time the market.
[4:00] Diving into the affordability index and the MCAI
[9:20] Mortgage Credit Availability Index MCAI
[10:00] Affordability = mortgage payments vs income
[12:30] Show recommendation, America In Color
[14:00] Watching the index move, in hindsight, from 2004 to 2019. What can we learn and expect?
[22:00] At some point, you want to be satisfied.
[24:15] “Successful people are willing to do things that unsuccessful people are unwilling to do.”
[30:00] Choose your company well.
Position or Profit? Position yourself for the rise of suburbia. With several contributing factors for people migrating away from mid-rise and high-rise condos, suburbia looks better and better. Jason Hartman shares real estate investing strategies that have proven effective for decades. However, current events have made these strategies more appealing. Investment Counselor, Doug, shares supporting investment tips based on the book, The Dao of Capital by Mark Spitznagel.
[1:00] Investment Counselor, Doug
[1:30] Discussing, The Dao of Capital, Investing in a Distorted World, Mark Spitznagel
[3:00] Instead of focusing on profit, focus on your position.
[7:00] Discussing strategies like searching for weak companies
[11:00] When you have population migrations it puts upward pressure on both price and rents
[14:30] The demand for sub 250k homes goes up, as 2.3 million potentially leave mid and high-rise condos.
[20:00] Dollar-cost averaging, the Spitznagel way.
[22:00] Timing the market, people often forget to calculate the cash that they lose by waiting.
[24:00] People buy a house because the payment is affordable, not the price.
Consuelo Mack of Wealth Track on PBS joins the show today to elaborate on the effects of the non-discriminatory Coronavirus. She expects to see two economic waves from this, and the second has yet to hit. Find out where she, unlike many others, recommends that you invest.
[1:30] Yes, this pandemic is non-discriminating, but a great takeaway is how lucky we are in America. Now is a time for most to reevaluate their personal, and professional lives.
[4:00] Expecting two waves in the economy. First, the shock and stop. Second, the aftershock and termination of employees.
[5:00] Cash reserves are extremely valuable in times of crisis.
[6:00] Cash is not trash!
[7:45] The value of liquidity can not be underestimated at times like this.
[12:00] People are already taking action to leave high-density areas.
[17:20] Reverse mortgages
[23:15] What role does FinTech play in all of this?
Jason Hartman talks with guest, Mark Moss, who believes in fully diversifying your investment portfolio. Mark shares his strategy on investing in gold, stocks, real estate, and even cryptocurrency. All of his strategy leads back to the idea that cashflow is the name of the game. Bitcoin does not need to be the global currency to have weight and validity. From game-theory to understanding what gives the currency its value, Mark shares what he knows about investing across the board.
[1:30] The smartest people in the world know that they don’t know.
[3:00] Cashflow is always the name of the game, but I don’t forget about investing for growth.
[7:00] Determine your own tolerance for risk.
[9:45] Understanding money creating, through debt.
[11:25] Since 1971, our standard unit of value has been severed.
[14:00] Fake wealth vs creating wealth
[17:00] Shifting to Cryptocurrencies
[19:00] Shifting to Cryptocurrencies
[22:20] Will cryptos lead to a separation of money and state?
[26:00] There shall never be sound money again until it is taken from the government.
[29:10] Understanding the bitcoin halving.
[32:30] While bitcoin may be limited, Cryptos, in general, have no limit?
Jim Puplava joins today’s show with much to talk about the supply chain disruption, and what’s to come of it. Jim says that business innovation is a must, and it looks as though companies like Walmart have already started making changes. These efficiencies aren’t only applicable in pandemic times, these strategies will prove to benefit businesses and patrons while we shelter-in-place or not.
Jim Puplava’s interview is continues with a discussion on inflation or stagflation, where do we see the immediate future of the U.S.? As well, Jim shares some interesting concepts about cryptocurrency, why it might be used, and why it might be rejected. Finally, Jim answers why negative interest rates cause a problem with cash.
[1:00] The supply chain has been disrupted. While it will take some time to correct, some of it will be beneficial.
[3:00] Inflation is a lot more money chasing fewer goods and services.
[10:40] Still singing the “creative destruction” tune. Business innovation is a must.
[11:45] The oil market, and the perfect storm.
[17:15] Is our future inflationary or stagflationary?
[24:20] Jim, what do you think about cryptocurrency?
[26:35] Why do negative interest rates cause a problem with cash?
[30:48] In the U.S., what’s the result of our debt to GDP ratio getting out of line?
Ellen Brown is today’s guest here to discuss Universal Basic Income, UBI. As well, she shares some interesting details about what happens to the money when a debt is paid. How did China increase its money supply by such a large percentage in two decades?
Guest: Ellen Brown, author of over a dozen books including, The Public Bank Solution, From Austerity to Prosperity
[2:30] What is a postal account?
[10:45] What is the end game of money spending?
[12:10] Money is lent into existence. Banks create the principal but they don’t create the interest, so debt always grows faster than the money supply.
[15:00] The real economy is always short of money because there’s a hole in the bucket that always drains into the financial economy.
[16:00] What is the financialized economy?
[20:20] Debt grows until it gets so high that people can’t borrow anymore, so they pay down their debts instead of taking out new debts. That shrinks the money supply. That goes into deflation which goes into depression.
[22:30] Money evaporates when it pays off the debt.
[26:30] All of our money is credit. China increased its money supply by 1800% in twenty years, and they did not run into hyperinflation. Find out more.
Coronavirus Quarantine Survivor, attorney, author, and actress, Juanita Ingram joins Jason Hartman to discuss Taiwan’s reaction to Coronavirus, approximately 30 days before it hit the U.S. What did Taiwan do right, and how did SARS prepare them for this problem. Born in Tennessee, and made her way through the U.K. and finally to Taiwan, hear Juanita’s perspective on the differences of culture and how Coronavirus was handled.
[1:45] What’s going on in Taiwan, so close to China?
[5:00] From Wuhan Virus to COVID-19, the changes made in Taiwan, approximately 30 days ahead of the U.S.
[6:45] After Taiwan’s experience with SARS, they had a pandemic plan in place. Taiwan is now being called the blueprint of what should’ve been done
[9:30] Taiwan’s cases escalated due to the import of cases from outside of the country.
[13:30] Two ER Doctors in Atlanta, Georgia that both tested positive. One is very sick, and the other is asymptomatic.
Doug Casey, author of Crisis Investing: Opportunities and Profits in the Coming Great Depression, joins Jason to discuss the biggest hysteria since the Salem Witch Trials. Casey shares his opinion on The Great Recession and the role it might play in the potential Greater Depression. Learn why Casey advises one to invest in mining, and his feelings on bonds, stocks, cash, gold, and cryptocurrency in comparison.
[1:20] “The biggest hysteria since the Salem Witch Trials” - Casey
[4:45] Casey presupposes that the worst of the 2008 recession is yet to come, and that for the last 8-10 years, we have been in the calm, the eye, of the storm.
[6:30] “This could be more than a financial meltdown. Possibly an economic and social meltdown as well.”
[7:00] The U.S. is no longer a country, but more-so a multi-dimensional, domestic, empire.
[9:20] Bonds are a triple threat, about the worst place for your money at this time.
[11:30] Bonds, stocks, cash, gold, cryptocurrency?
[15:15] Have we entered the greater depression? This could potentially be the biggest upset since the industrial revolution.
[20:50] Surviving a depression, the most important thing is to have assets where there is no counter-party risk. Something in which you don’t have to trust a bank, insurance company, or your pension fund.
[23:30] Having fun, what about mining the asteroids?