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Peter Schiff 2017 - Economic Predictions - Financial Crisis 2017 Will Dollar Collapse

Peter Schiff : People used to buy houses without any money , the government caused  the collapse  

Peter Schiff is an economic forecaster & investment advisor influenced by the free market Austrian School of Economics is one of the few forecasters who accurately and publicly predicted the 2007 housing market collapsed and subsequent 2008 financial crisis his latest best-selling book the real crash Americans coming bankruptcy how to save yourself and your country will understand the 2008 crisis was just a prelude to a larger sovereign debt crisis of the united states that may lead a collapse of the US dollar either recommends long-term investment in foreign markets with sound fiscal policies as well as global commodities including physical precious metals and we have a more comprehensive bio including the titles of all these books and the names of all these companies and websites right on our website directly for westport connecticut i would like to welcome Peter shift hell Peter welcome how are you oh I'm well how're you doing today excellent i'm sure privilege because from four years and i have to tell you right from the beginning you stated years ago that there was going to be a real estate bubble and many people ignored you including me so I'll be humble about it so what would begin with dad specific fact what prompted you back then to predict that well I mean I understood the offensive said policy i knew that real estate in particular was particularly sensitive to interest rates because most people when they buy a house they say by the monthly payment they buy the mortgage payment and so as interest rates were depressed it kept more is rates low US housing prices rising and then a lot of people were taking advantage of adjustable rate mortgages which were particularly inexpensive and a lot of more interest only where people weren't even making payments of friends well they just paid the interest and when the interest was extremely low thanks to the Fed people were able to buy much larger houses are much more expensive houses then they would ordinarily be able to afford and so I saw this and I saw the impact that rising real estate prices was having on the economy on consumption on the ability of people to transform their real-estate riches into spendable cash by refinancing and turning their homes into ATM machines and I saw the lending standards going out the window and you know the proliferation of no doc no downpayment mortgages where people could buy houses without any money yeah in fact you're so certain security circumstances where you can get cashback you can actually buy a house and get money I so it was it was really a crazy time and it was amazing how few people could see what the government was doing 4:48 with the Fed was doing to the market and 4:51 of course then you have the direct 4:53 intervention that government was 4:54 guaranteeing mortgages and in fact the 4:57 biggest buyer of subprime mortgages were 4:59 fannie mae and freddie mac which is one 5:01 of the reasons they basically went 5:02 bankrupt which was part of my 5:03 predictions but the government was 5:05 co-signing everybody's mortgage and of 5:07 course they still do that you know I and 5:10 so this was very distortive to the free 5:13 market so more people were buying houses 5:16 and would hop without it you know with 5:18 apples out all that government help and 5:20 they were paying prices that were absurd 5:23 and that never would exist in a free 5:24 market and so I knew this was going to 5:27 collapse so I new prices would collapse 5:29 and I knew that there would be an 5:31 ensuing financial crisis because as real 5:33 estate prices claps and mortgages went 5:36 bad 5:37 I and people started to fall on their 5:39 mortgages that this would create a 5:41 banking crisis because all those 5:43 mortgages are the liabilities in the 5:45 banking sector or assets rather to the 5:47 banks and it's all of a sudden those 5:49 assets are not there the whole bank 5:52 collapses because they need those assets 5:54 to support apple structure so I saw this 5:56 and you know I help position people the 5:59 prophet and profited through shorting 6:02 the market of course you know 6:03 they Michael Lewis wrote a book the big 6:06 short they made a movie about it but not 6:08 that many people saw that but you know 6:10 to me it was very obvious but what's 6:13 more important is not that crisis that 6:16 everybody mixed but the even bigger 6:18 crisis that everybody is about to miss 6:21 you know it's the same people and it's 6:24 the same forces at play and in fact all 6:28 the problems that led to the 2008 6:31 financial crisis have been exacerbated 6:34 since that crisis so we haven't solved 6:37 the problems we've made them all worse 6:38 and so it's the same disease only we now 6:42 have a a much more severe case of that 6:46 disease and it's about to become 6:48 inflamed and you know a lot of people 6:50 are very optimistic about Donald Trump 6:53 now of course these people were 6:54 petrified of a trump presidency right up 6:57 until the point he was elected now 6:58 everybody's you for at least in the 7:00 market but the reason that I you know I 7:03 thought Trump was probably going to win 7:05 because I understood what most people in 7:09 the markets did not and that was that 7:10 the recovery that has been you know how 7:14 much hyped up by the media and by the 7:16 Fed and by obama and you know I knew 7:19 that it was phony I knew that there was 7:21 no real economic growth that we had a 7:23 reflected bubble masquerading as growth 7:26 and I knew that beneath the superficial 7:30 layer of manufacturers statistics was a 7:33 very weak economy and I knew a lot of 7:35 people would be voting you know for trop 7:38 out of frustration out of anger out of 7:41 protest because people standard of 7:43 living was falling and I often said that 7:45 this is the first recovery in history to 7:48 be worse than the recession that were 7:50 supposedly recovering from and so I 7:53 thoughts from could win but of course 7:55 the economic problems that are the 7:59 reason from was elected have not been 8:02 solved because we elected him nor is he 8:04 going to solve them 8:06 the optimism is unfounded just like 8:09 people were very hopeful that Barack 8:10 Obama would make things better and he 8:13 made things worse and now you have a lot 8:15 of false hope 8:16 out of surrounding Donald Trump but we 8:18 have some serious serious economic 8:20 problems that need to be tackled before 8:23 we can make any legitimate progress but 8:26 nobody has the stomach for tackling I 8:28 mean president electron when he ran he 8:31 did not run on austerity program he was 8:34 in promising you know government 8:36 spending cards and that you know we have 8:38 to suck it up and work harder and spend 8:41 less and save more and rebuild the 8:43 economy he just promised tax cuts and 8:46 more government spending and you know 8:48 the equivalent of you know you're 8:50 overweight but I've got a diet of you 8:53 know cupcakes and ice cream and you know 8:56 you're going to be able to lose weight 8:57 it wasn't like you're going to have to 8:59 you know go to the gym and eat salad 9:02 it was yeah just to let me and I'm going 9:04 to make everything great and you know 9:07 it's not that simple you know it's 9:09 interesting because days before the 9:11 election analysts were predicting that 9:14 is trouble word win five percent of the 9:17 market would just collapse that night 9:19 and that's exactly what happened that 9:21 night actually shorted the market 9:23 because I thought I don't get it 9:26 Trump lunch and less regulation less 9:28 taxes which is parallel to what wall 9:30 street once and hillary wants the 9:32 opposite higher taxes more regulation 9:34 why did that was a disconnect there with 9:37 the media 9:38 well you know obviously one of the 9:40 reasons is the media wanted to create a 9:42 situation where people were worried 9:44 about voting for Trump so that they 9:46 wouldn't do it right all that data 9:47 through these terrible of trumpets 9:49 elected so we better not vote for like 9:51 breakfast to have norway 9:52 yeah but I always said to that like 9:54 Trump if you know if you want to be in 9:58 the market you know Trump is more 10:00 business-friendly at least is rhetoric 10:02 right he's talking about less regulation 10:04 lower taxes and Hillary's talk about 10:06 more regulation higher taxes so how can 10:08 that be good but i think people were 10:11 worried about the uncertainty of 10:13 updating the status quo about 10:14 protectionism or things like that 10:17 because it's a very fragile system i 10:19 mean it's a whole thing is a gigantic 10:21 bubble in fact interestingly enough 10:22 Donald Trump talk about the bubble in 10:25 the stock market when he was a candidate 10:27 now is claiming credit for the 10:30 rally is like excited about the market 10:32 going up but you know if it was a bubble 10:35 before he was elected it's a bigger 10:37 bubble now I mean it's this more more 10:39 air in it out so no idea i didn't 10:42 understand the reasoning why the market 10:46 should go down and Trump one I mean 10:47 there are other reasons for the market 10:49 to go down like it's very expensive but 10:52 Trump is more market-friendly than 10:55 Clinton but the markets going to have a 10:57 lot of serious problems but yes in 10:59 corporate tax rates or cut then that 11:01 would increase the evaluation of stocks 11:04 but stocks have a lot of debt and I 11:07 think Americans are broke and as the 11:10 economy weekends and interest rates rise 11:13 I ultimately dollars going to fall and 11:16 it's gonna be very tough for the the US 11:18 stock market but it still might go up in 11:21 nominal terms but it's not going to make 11:23 any headway in real terms speaking of 11:26 the bubble the dow is racing to 20,000 11:29 lbs MPs already at an all-time high 11:31 getting 29 points today two words come 11:34 to mind from alan greenspan irrational 11:36 superstition 11:37 let's begin with the market are they 11:39 going to continue going up for some time 11:41 well I think they'll go up for a bit i 11:44 mean i don't know how much longer I 11:46 don't go up at this pace because the 11:48 markets are you anticipating things that 11:51 are impossible so it is irrational 11:53 belief but again the people that are 11:56 buying stocks don't like they're going 11:59 out of style and because Trump was 12:01 elected with the same people that were 12:03 saying well if Trump wins it can be 12:05 terrible for stock so happy you know 12:07 it's just it doesn't really matter just 12:08 a narrative and and and they're making 12:10 their trying to spin it in a positive 12:12 way guess that's what Wall Street does 12:14 and i do think there were some shorts in 12:17 the market that are obviously getting 12:18 squeezed this year and rally people 12:21 people are trying to maybe reposition to 12:23 look a little better as the year wraps 12:25 up but you know that is talking rate 12:29 hikes they might hydrates next week she 12:32 long-term interest rates meanwhile have 12:34 already moved up considerably and they 12:37 could be moving up much more which is 12:40 going to be a huge headwind for the US 12:42 economy because we have 12:44 so much debt and because we have an 12:46 enormous amount of death as interest 12:48 rates go up we have to spend a lot more 12:50 money paying the interest on that debt 12:52 and so forth if we're spending all this 12:54 money paying interest on what we 12:56 borrowed there's a lot less money 12:57 leftover offer you know the rapid 13:00 economic growth or what other people we 13:02 know the paper current consumption 13:03 because you're still paying off prior 13:06 consumption 13:07 I have no doubt i think the market is 13:09 already digested dead yell and will say 13:11 bed interest rate is going up a quarter 13:14 percent tap come December do you think 13:17 she'll also mentioned future quarters 13:19 and I i think that the fed will try to 13:23 downplay the expectations for additional 13:25 tightening but what's more important is 13:28 the lawyer under the curve and that's 13:30 what's really starting to move to our 13:32 commodity prices are rising oil prices 13:35 back about the accomplishment very 13:37 strong are commodities in general I 13:39 think arising I think inflation is 13:41 getting ready to accelerate and you know 13:43 this is going to just make the pain 13:46 greater for the average American has 13:47 already you know suffering a rising cost 13:50 of living while his you know paychecks 13:53 have been diminished and you know I 13:55 don't see any quick fish is here on the 13:57 job front 13:57 you know I mean we're still hemorrhaging 13:59 a full-time jobs and creating these 14:03 little gang part-time jobs and that's 14:05 not going to you know turn around you 14:08 know when Trump is inaugurated will be 14:10 ever see maybe a fraction maybe a little 14:14 high number of jobs coming back to the 14:17 United States based on what's happening 14:19 today 14:19 repent reiation of funds companies 14:22 saying they'll bring money back here is 14:25 that a reality was just bringing money 14:27 back isn't going to necessarily bring 14:29 any jobs back 14:30 you know we just bring the money home 14:32 and maybe companies pay out bigger 14:34 dividends at Americans spend that to buy 14:36 more important products or maybe they 14:38 use it to buy back stock key but i don't 14:41 really see a big increase in productive 14:44 employment I mean we have you know a lot 14:46 of be regulating to do and Trump talks 14:50 about it but will you know let's see 14:51 what happens i mean it's you know 14:53 regulations are rarely rollback 14:57 no government spending needs to be cut 14:59 Reagan couldn't even pull that off and 15:02 you know Reagan promised to cut spending 15:04 Trump didn't even make those promises 15:06 here he talked about increasing spending 15:08 and and you know that's likely to happen 15:10 so we're likely to get some type of 15:13 middle-class tax cut and some type of 15:16 government spending increases all that 15:19 is just going to add to the deficit and 15:21 inflation and ultimately you know lower 15:23 standards of living in and you know 15:25 destroy value of the dollar so before 15:29 president obama leaves office we have 15:30 put about 20 trillion dollars of debt 15:33 and to that you had three trillion for 15:35 local and state government how much more 15:38 debt can we leave our future generations 15:40 and can we really pay it 15:42 although we can't pay it i mean tang is 15:44 impossible but the question is can we 15:47 service it can we just pay the entry 15:49 right on the debt and the answer to that 15:51 question is not if interest rates go up 15:53 as long as interest rates they this low 15:56 then we can keep paying for a while but 15:59 at some point interest rates have to go 16:02 up and if they don't go up because the 16:04 Fed won't let them go up there is the 16:06 dollar that's going to crash but one way 16:08 or another right either we default on 16:10 the debt because we let interest rates 16:12 go up or we inflate it away because we 16:15 don't but either way the people who are 16:17 own owning the bonds are not going to 16:19 get paid right because either they're 16:21 going to lose their money or the money 16:23 is going to lose value but they're not 16:25 going to get back to purchasing power 16:27 going back to the real estate bubble for 16:30 a moment 16:30 why did most of the population in or the 16:33 signals of this bubble bursting with it 16:35 because we kept hearing the real estate 16:37 prices historically never go down it's a 16:40 solid investment what really triggered 16:42 the people to continue 16:44 well i think it was you know popular 16:46 delusions and the madness of crowds i 16:48 mean most of the people who didn't see 16:50 the real estate bubble owned a house 16:53 and you know they didn't want to admit 16:55 that the asset that they owned their 16:57 biggest asset that they thought was 16:59 going to appreciate indefinitely 17:01 they didn't want to acknowledge that it 17:03 was a bubble because this was their 17:04 ticket to retirement I mean you know the 17:06 idea that you can just buy a home and 17:08 live in it and as you live in it and 17:11 enjoy it every year it just goes up in 17:13 value by 50,000 hundred thousand dollars 17:15 i mean people average people give people 17:18 your teacher schoolteacher fireman and 17:22 you were you know 40 years old you 17:24 thought you'd be a multi-millionaire by 17:26 the time you were 60 because how much 17:27 your house was going to be work and so 17:30 nobody had to save any money you can buy 17:32 whatever you wanted to get the house did 17:33 the work for you 17:35 in fact i think a lot of people don't 17:36 even think they needed a job they just 17:38 thought they bought a house that was the 17:39 only job I need it 17:40 the house will do all the work that we 17:41 just keep going up in value and they can 17:43 keep your borrowing the money I so 17:46 nobody wanted to believe it of course 17:48 you had all the people from the mortgage 17:50 market and the real jurors they know 17:53 what they want they wanted the party to 17:54 keep going 17:55 I so you know there was not that many 17:58 people that you know that really you 17:59 wanted to acknowledge this nobody wanted 18:01 it to end in anybody like me if I tried 18:04 to rain on that parade right i mean i 18:06 was immediately attacked by everybody 18:08 you know so and that's always what 18:11 happens you know when you nobody nobody 18:13 wants to know you know you're the bearer 18:15 of bad news it's like there's an 18:17 expression you know you don't shoot the 18:19 messenger well you know they used to 18:21 shoot me all the time nobody wanted that 18:23 message tell you you've been criticized 18:25 but ben stein and they did and the rest 18:27 of them all the time 18:28 what do they say now by the way is it 18:30 usually first he laughed with you then 18:32 when you're right 18:34 well he were right all along now but 18:36 then they still don't want to then they 18:38 say you were just lucky or you're a 18:39 stopped clock you know but then you have 18:42 been set a lot of good things about me 18:44 are recently in fact even did a blur by 18:48 my my latest book I which is that the 18:51 real crash Americans coming bankruptcy 18:53 how to save yourself in your country and 18:55 if you have a read that book guy you 18:57 should pick it up you know get on Amazon 18:59 are you i have my own nut a site where i 19:01 sell my books to or linked to my books 19:03 shipped 19:05 so you can you know just go there as a 19:08 ship books but I by the way a great book 19:11 i have i'm doing a holiday special on 19:13 this book is armed a collector's edition 19:17 of my book how an economy grows and why 19:19 it crashes into an illustrated kind of 19:22 cartoon book on economics that i think 19:25 is an excellent primer for teenagers 19:27 young adults but of course anybody can 19:29 read it but it really is a great 19:30 introduction to free-market economics 19:33 Austrian economics at this dolls all the 19:35 myth that you know your kids are 19:37 learning in high school and college when 19:39 they taking comics courses and they 19:41 learn all this 19:41 Keynesian nonsense so I'm autographing 19:44 copies and selling them at a discount on 19:47 my website at ship while 19:51 supplies last 1i i took my bought I 19:53 bought out how many they had left as the 19:55 publisher wiley and so I'm know for 19:58 christmas you want to buy I want to give 20:00 them ways guess I think they're great a 20:01 bush good coffee table books i mean i'd 20:03 even I have clients to read them to 20:05 their young children you know I and you 20:08 know it's very education but it's funny 20:10 you know you'll get a good laugh as I 20:11 when you're reasonable so you save those 20:14 for me i'll be to my daughter and i have 20:16 to tell you have to compliment you 20:17 because you know most people when they 20:19 hear the word economist or financial 20:22 expert people think overall it's going 20:24 to be boring talk w one of those people 20:26 then when you speak you speak in such a 20:30 clear down-to-earth manner that people 20:33 understand i saw your video from a few 20:35 years ago at the Occupy Wall Street 20:37 where you were the one percent of 20:39 one-percenter ask me a question and I 20:41 have to tell you mean that they was very 20:43 convincing when you were telling people 20:45 that you're very approachable yet an 20:47 open-door policy 20:48 what came out of that by the way yeah 20:51 it's interesting because I guess the 20:52 some other website just happened to put 20:55 up a copy of that you know this was 20:57 originally I did that was it don't wait 21:00 four years ago years ago forgot how long 21:02 it was when they did the Occupy Wall 21:03 Street movement but I went down there 21:06 reason TV came down with me i had the 21:08 idea to go and so we told reason about 21:11 it mr. yellow fulfillment for it so I 21:14 went down there 21:15 zuccotti park and at the time I did it 21:18 three 21:19 we got a lot of views you know a lot of 21:20 websites picked up some of them craft 21:22 they were very popular and I wouldn't 21:24 discuss it on TV 21:26 I mean I anderson cooper talking about a 21:28 few other shows that me on because you 21:29 know it was you know a lot of people 21:31 watching him and of course it died down 21:33 and then some website this happen to put 21:36 up a copy of it recently a couple weeks 21:39 ago 21:39 yeah and it got now it's got another 10 21:42 1.7 million views 21:44 you know so you know it kind of has a 21:46 new life but you know what what what 21:49 maybe go down there because i saw these 21:51 people protesting you know I on Wall 21:56 Street and they were there they're 21:57 protesting capitalism they're protesting 21:59 what they saw as the problem which was 22:02 Wall Street in the banks and they were 22:04 blaming Wall Street for the crisis and I 22:07 like you know these people are right to 22:09 be upset their right to be protesting 22:12 but they're directing their anger in the 22:14 wrong direction they should be in 22:16 Washington they should be protesting the 22:18 Fed they should be protesting Congress 22:20 and the president not capitalism because 22:24 capitalism is not their enemy 22:26 capitalism is there salvation their 22:28 enemy is government is socialism or 22:30 corporatism fascism whatever you want to 22:33 call it but because we've got a you know 22:35 a government-controlled type command 22:38 economy it essentially plan that a 22:41 Washington as opposed to a real free 22:44 market economy and so I wanted to go 22:46 down there and try to educate you know 22:49 the people but more importantly I knew 22:50 that by filming it and having it up on 22:52 youtube that I would educate a lot more 22:55 people than the people in the park and 22:57 even if I couldn't convince the people 22:59 in the park 23:00 I could convince people that were 23:02 watching at home and that's exactly what 23:04 happened because you know for years I 23:06 get emails from people course now i'm 23:08 getting a more of them because of this 23:10 new you know new video but I've been 23:13 getting even before this new video came 23:15 out you know I still get emails from 23:17 people all around the world particularly 23:19 people live in countries that used to be 23:20 common people email me young people 23:23 ah ok I used to be socialists I used to 23:25 be very left-wing but then I saw this 23:28 and and I you know and it got me 23:31 thinking and I've done more research and 23:32 I'm I've done a complete you know 180 23:34 and I'm a no total free market guy now 23:37 conserved so it worked committed 23:39 accomplished what I was hoping in that i 23:42 was able to use that that podium that 23:45 platform and all those people and the 23:47 dialogue that we had in a positive way 23:50 I mean even if I didn't necessarily 23:52 change the minds of the 40 or 50 people 23:56 who happen to be there 23:57 I probably change the minds of thousands 24:00 of people who were watching the videos 24:03 around the world and you were very very 24:05 patient but i have to say some of the 24:07 people that disagree with you when you 24:09 asked him what you do they were 24:11 government employees where do they think 24:13 that the money did change them on that 24:16 government job whether they think the 24:17 money comes from 24:18 yeah well most people don't even care 24:21 you know that's where it comes from but 24:24 yeah I mean all every in fact people 24:26 that work for government don't even pay 24:28 taxes 24:29 really i mean they think they do right 24:31 because they they get a paycheck and 24:33 they have taxes taken out of it but it's 24:35 not really paying taxes if you work for 24:37 the government 24:38 let's say the government page fifty 24:39 thousand dollars a year and then you pay 24:42 10,000 and taxes you the government is 24:45 paying you 40,000 right you're not 24:46 you're not paying any taxes all because 24:48 you're not giving the government 24:49 anything that they didn't already have 24:52 you're just giving them back a little 24:53 bit of what they gave you but the net 24:56 effect is that the government is not 24:57 getting tax revenue from its own 24:59 employees it is paying its employees so 25:02 all the taxes have to be paid by people 25:05 who work in the private sector that's 25:07 the only reason that government workers 25:09 can get paid they do nothing 25:11 they're not supporting the government at 25:13 all they like to think they are but 25:15 they're not they're living off the 25:17 taxpayer they're not taxpayers their tax 25:20 takers to go to judge frank for a moment 25:23 do you think that Frank was the answer 25:25 to the real estate bubble collab verse 25:27 that although I mean first of all chris 25:30 darden God and Barney Frank were part of 25:33 the architects the finances right they 25:36 were in bed with fannie and freddie i 25:38 mean they were you know so to have them 25:41 try to find a solution is like people 25:45 expecting the house or even need to lift 25:48 higher the Mafia to solve our crime 25:51 problem you know and and so now 25:53 dodd-frank never should have been tasked 25:55 and it's done more harm than good to the 25:58 extent that even done good but the the 26:02 reason that we had a financial crisis is 26:05 that government intervention into the 26:08 market created the conditions that led 26:10 to that crisis so what we should have 26:12 learned from our mistakes is that we 26:14 want to remove all these government 26:17 I you know interferences these 26:19 impediments these subsidies these 26:21 regulations that distort the markets and 26:24 that lead to this type of reckless 26:26 risk-taking and a bubble-blowing but we 26:29 didn't do that instead of reducing the 26:31 role of government in the markets we 26:33 expanded that role and so now the 26:36 government's are able to do even more 26:37 damage than they were before how 26:40 responsible do you think was 26:42 glass-steagall the the removal of 26:44 glass-steagall in 1970 their into 26:46 clicking touch covers bunch of his dish 26:48 for the guys in the bubble I'm minimal 26:52 minimal was more the Federal Reserve ah 26:55 and you know Fannie and Freddie and the 26:57 FHA had been there all along but you 26:59 know the real problem with 27:01 glass-steagall was the fact that we even 27:03 had it i mean it that the problem and 27:06 the need for some of these regulations 27:07 all stems from the bad decision that 27:10 Franklin Roosevelt made in the thirties 27:13 for the government to ensure bank 27:16 accounts and of course when he made that 27:18 decision the insurance only apply to a 27:21 small percentage of the deposit but it's 27:24 you know the camels nose under the tent 27:26 once we made the mistake of going down 27:29 that road you know now the government 27:31 ensures pretty much everything 27:33 what was that don't know was it rose 27:35 filled enticing people to put their 27:37 money back and be a bank account after 27:39 the Depression started 27:40 yeah because you know there were some 27:41 banks failed i mean a very small 27:43 percentage and some people lost their 27:46 deposits and so the idea was ok the 27:48 government's going to guarantee these 27:50 bank accounts so that you won't have to 27:52 worry about losing your deposit but 27:54 I want people worried about losing their 27:56 money because then they'll be careful 27:59 about which banks they entrusted to but 28:02 now you have this moral hazard where 28:05 nobody gives a damn what the bank does 28:08 with your deposit because it's 28:10 government-guaranteed now the bank's 28:13 know this so there's no point in the 28:15 bank's competing for safety 28:17 so they just you know do all kinds of 28:20 reckless things and now you have to have 28:22 government kind of monitoring the 28:24 reckless behavior of banks but they're 28:27 only acting recklessly because the 28:29 government removed the free market 28:31 incentive not to because when people 28:34 were concerned about their deposits then 28:37 banks had to be responsible in order to 28:40 attract deposits and a lot of people 28:42 said well you know the average American 28:44 doesn't know how to read a balance sheet 28:46 would know how to analyze a bank to know 28:49 whether it's safe or not well you don't 28:50 have to look I don't know anything about 28:51 auto mechanics but i still buy a car and 28:55 you know I could go and read consumer 28:57 reports or I can talk to other people 29:00 who maybe dunno a little bit about cars 29:01 and they can help me make this selection 29:05 you know I don't know anything about how 29:06 a computer works but i can buy one and I 29:10 you know I don't know by good ones that 29:12 are quality because I can do research 29:14 and same thing about a television set 29:17 I don't know you I couldn't build what I 29:18 have no idea how to repair one so the 29:22 same thing would happen with banks there 29:24 would be our publications that would 29:26 rank banks and of course you know banks 29:28 you know you can see over here where 29:30 does Warren Buffett keep his money 29:32 I'm going to keep my money there you 29:33 know where the smart people bank okay 29:35 well you know they must be good right so 29:37 if you don't know enough then you know 29:39 follow the people who do right now so i 29:41 think the free market would would 29:43 produce a very sound stable banking 29:45 system but the one that we have now 29:48 that's built on government guarantees is 29:50 a complete mess 29:51 I mean this is a disaster and you know 29:54 we we came close to the abyss inouye coz 29:57 hold all these banks would have Kabul 29:59 and you know during the Depression you 30:02 know one or two percent of the deposits 30:04 were lost 30:05 had we not have the tarp and all those 30:07 big bailout to me 30:08 we would have lost I mean huge 30:10 percentage of deposits would have been 30:12 lost but at the end of the day what the 30:15 government did in the bailouts just made 30:16 the system that much worse all those 30:19 banks that were too big to fail their 30:21 way bigger now and so you know and you 30:24 know they're gonna fail and if they 30:26 don't fail it's only going to be cost a 30:28 dollar collapse and so it doesn't even 30:30 matter that you get your deposits are 30:33 not lost because they're not gonna be 30:34 worth anything i remember back in the 30:36 early nineties when we had the the this 30:40 welcome to banc Election Day the forgot 30:43 the actual name for you remember remind 30:45 me have it wasn't in the Indian 30:48 1990-1991 we have to come in and bring 30:52 all these trustees to take over while 30:54 you're talking you're talking about the 30:56 SNL what the long-term capital because 30:58 the S&L crisis was here earlier than 31:01 that the crisis in the late nineteen 31:03 eyes that long-term capital we had an 31:05 SNL crisis savings but that he was in 31:08 the ladies ladies and that you were 31:10 right right moves 90 hours it was well 31:12 before we're picking up the pieces in 31:14 the early nineties oh yeah and that has 31:17 to do with changes in the tax law you 31:20 know that that took away a lot of 31:21 deductions that existed in the real 31:23 estate market and that was you know but 31:25 a lot of these savings alone due course 31:27 you know they had government-guaranteed 31:29 deposits and that was the source of some 31:32 of the reckless behavior you know that 31:34 is the moral hazard when government does 31:37 that certainly don't government should 31:39 not be ensuring bank accounts that's 31:41 that is the problem it when i go to the 31:43 bank which is not that up and lately and 31:46 I see this 250,000 lower limit 31:49 I last because i think it's a collapse 31:52 were to happen 31:52 how much money do we have really do we 31:55 have in circulation 31:57 p well the figures that limit doesn't 31:59 even matter because every time a bank 32:01 has failed recently the government has 32:03 reimbursed every deposit so nobody has 32:06 ever lost anything I mean so you know 32:08 they won't they won't let anybody lose 32:11 money but you know ultimately you know 32:12 the FDIC has very little money and so 32:15 it's a major bank will fail i mean 32:17 there's nothing there so the Fed would 32:19 have to bail it out 32:21 the PFC doesn't actually have enough to 32:25 cover the losses 32:27 speaking of government guarantees i 32:29 think this is in my opinion another 32:31 bubble that's coming student loans 32:34 well you have to take me to the student 32:36 loan bubble has been growing for years 32:38 you know that i wrote about that pretty 32:41 extensively in my book you know the real 32:44 crash and of course the bubble has 32:46 gotten so much bigger since since i 32:48 wrote about it but that is another 32:50 example of government creating a problem 32:53 and then holding itself out as the 32:56 solution to a problem its own creation 32:59 and then making the problem it created 33:01 even worse with its so-called solution 33:04 still at one time 33:08 college degrees were very valuable but 33:11 not very expensive and not that many 33:14 people actually went to college as a 33:16 percentage of the population but if you 33:18 are the type of person that would really 33:20 benefit from that education you can get 33:23 one and even if your parents were a 33:25 relatively modest means 33:28 ah but you wanted to go to Harvard or 33:30 Yale they could swing it and even if 33:32 they couldn't you could get a job over 33:34 the summer and work your way through 33:36 college and no that was very common 33:39 ah for much of you know the the 20th 33:42 century or certainly the earlier part of 33:44 the 20th century people work their way 33:47 through college nobody graduated college 33:49 with debt that is a function of 33:52 government what happens is some 33:53 politicians decided that hey we can get 33:56 students to vote for us if we promise to 33:59 get them so they can borrow money to go 34:02 to school so they won't have to work a 34:03 summer job or they won't have to work 34:05 evenings will just arrange it so they 34:07 can borrow money by guaranteeing the 34:09 loans and hey everybody thought I was 34:11 great i could just borrow this money 34:14 well the minutes happens it started as 34:16 big bubble because then the college's 34:19 instead of having to compete for 34:21 students by keeping their tuition low 34:23 now the two students completed tuition 34:26 no matter how high it rose because they 34:28 could always get the money because they 34:30 can borrow it and normally you know a 34:33 banquet loan money to a kid that you 34:35 know 1819 I mean what's you know what's 34:37 the collateral nothing but once the 34:39 government cosine is the lone what 34:41 everybody wanted to loan money these 18 34:43 year olds and they didn't care you know 34:45 what they were majoring in 34:47 if their major had any economic 34:49 viability they didn't care if they were 34:51 in a student or deaf students because 34:53 the government didn't care 34:54 all the loans were guaranteed so we 34:56 created this situation where 34:59 colleges and universities could use this 35:01 student loan program they milked it they 35:04 kept raising prices the students kept 35:06 borrowing the money they would raise the 35:08 salaries of the teachers and 35:09 administrators and then they would build 35:11 these fancy gymnasiums and you know all 35:13 kinds of Housing and this is huge bubble 35:16 and it was all because of his government 35:18 money 35:19 meanwhile everybody was you know 35:21 funneled into the university system if 35:23 everybody was told you have to go to 35:25 college 35:26 everybody have to go to college you know 35:28 whether you're you're smart or whether 35:30 you're an idiot you know I mean colleges 35:32 actually had remedial and still have 35:34 remedial math remedial English we have 35:38 people going to college that shouldn't 35:40 even have graduated high school but they 35:42 were pushed through high school you know 35:44 No Child Left Behind whether they can 35:46 read or not and you have people 35:47 literally who are functional illiterates 35:49 going to college and you know taking 35:52 remedial courses and you know they're 35:54 never going to benefit from these 35:56 degrees 35:57 everybody's got a college degree but if 35:59 you want to see a funny video that I 36:01 shot top three years ago when i was in 36:04 new orleans i happen to be there for a 36:06 conference and so I took a microphone 36:07 and a camera and I walk down Bourbon 36:09 Street and I was asking all the people 36:12 that work there one night and of course 36:14 you got bouncers you got strippers you 36:17 got bartenders you got pedicab drivers 36:20 you know all kinds of people doing you 36:23 know menial no skill low-skilled type 36:26 work and I asked everybody you know did 36:29 you go to college 36:30 yes you know what was your major you 36:32 know when did you graduate how much do 36:34 you owe and that mean that you just this 36:36 is it I mean there are some people that 36:38 had two or three different degrees i was 36:40 talking to people that have master's 36:41 degrees that you know we're tending bar 36:43 right this is it you know and love these 36:46 people graduated five years ago 10 years 36:48 ago and they're doing nothing 36:50 they have jobs that they didn't even 36:52 need a high school diploma for these 36:54 jobs alone a college degree but you know 36:57 and this is all government schools 36:59 government you know we we don't really 37:01 have private education to a great extent 37:03 because the government takes all the 37:05 money in taxes and property taxes and 37:08 and now you got most people have no 37:10 choice but to send their kids 37:11 these lousy government schools where 37:13 they learned nothing 37:15 the schools are run for the benefit of 37:16 the administrators and the teachers 37:18 unions no one gives a damn about the 37:21 kids they graduate they learn nothing 37:23 and then they go to college for no 37:25 reason and now it takes you know five 37:28 and six years to get these four year 37:30 degrees because there's so many people 37:31 in college you can t get the courses 37:33 that you need to graduate so kids are 37:35 there forever 37:36 they're graduating fifty a hundred 37:37 thousand more in debt they have no 37:40 marketable skills they take these 37:41 ridiculous liberal arts courses 37:44 ah they study you know women studies 37:47 african-american studies you know 37:49 psychology is sports all kinds of 37:51 nonsense they know nothing 37:54 they've wasted the formative years of 37:56 their lives when they could have been in 37:57 the workforce learning skills making 37:59 connections instead they got drunk and 38:01 party for five or six years and now they 38:04 have so much debt they can't even get a 38:06 real job because if they get a job they 38:08 can't afford to pay the debt back and 38:10 their taxes so they say they're living 38:11 with their parents you know they leave 38:13 for college for fought for 56 years then 38:16 they come home and now they're living in 38:17 the basement you know and so that this 38:19 is this is all created by government 38:21 this is one gigantic bubble at this 38:23 point college degrees that are so 38:25 expensive that they make it makes sense 38:28 hardly anybody should go to college at 38:30 this point because the cost benefit is 38:32 just not there and you know with the 38:34 internet and the ease with which you can 38:36 learn and access information online go 38:39 to college 38:40 what's this white it's really you know 38:42 if you look at the smartest Americans 38:44 they were self educated men I mean a lot 38:46 of the founding fathers didn't go to 38:48 college 38:49 very very smart meant where were 38:51 self-taught in fact it's interesting if 38:56 you you know go when you go to that 38:58 youtube channel and edits you look at my 39:00 my video about dumb about the college I 39:05 talked about in that it into Orleans if 39:08 you look about that if you read the 39:11 description of the video is a very 39:14 interesting description but I point out 39:16 23 wealthiest Americans who have ever 39:19 lived right John the Rockefeller andrew 39:22 carnegie and cornelius vanderbilt right 39:25 those are the wealthiest americans i 39:27 think the network of these three is 39:29 estimated Rockefeller was worth like 600 39:32 billion in today's terms six I mean 39:34 something obscene amount of money 39:36 accardi about 300 billion and I think 39:39 Vanderbilt maybe a hundred 1575 billion 39:42 right you can compare that to Bill Gates 39:44 who is the richest person alive today 39:45 he's worth about 60 building 55 those 39:47 but Carnegie dropped out of high school 39:51 at sixteen Vanderbilt dropped out of 39:55 school at 13 39:56 I mean cartoony dropped out of 13 and 39:59 vanderbilt dropped out of school at age 40:01 eleven it soaks here Kylie went to 40:04 school till he was 11 years old it's 40:07 it's built an empire you know and so you 40:10 can learn a lot and even Bill Gates by 40:13 the way who is the richest living 40:14 American with the world trucked out he 40:16 dropped out of college but at least he 40:17 made it to cause but he did not graduate 40:19 so you know some of the richest most 40:23 successful Americans of all time 40:25 never went to college you know and as 40:28 you know so it's been oversold overhype 40:31 by governments and teachers unions but 40:34 you know any time the government gets 40:36 involved in something and also you know 40:37 it started with the GI Bill and that's 40:39 kind of where they got involved in 40:41 education but whatever they get involved 40:43 in it that quality goes down the cost 40:46 goes up we want to free marketing and we 40:48 want to get government completely out of 40:50 Education no government loans no 40:52 government guarantees i like to see 40:54 government out of K through 12 I like to 40:56 get rid of all these private schools and 40:58 let entrepreneurs compete for students 41:01 in the free market because then you've 41:03 got to deliver a good product then you 41:05 gotta sell the parent on sending the 41:07 kids at school 41:08 hey my school is great I here is our 41:11 here's our graduation rate here is what 41:13 percent of our kids get into ideally 41:15 schools or here's how the jobs that 41:17 people get when they graduate from our 41:19 school 41:20 instead you know the public schools have 41:22 a captive audience 41:23 you gotta send your kids to the school 41:24 you live in a school district your kid 41:26 has to go here 41:28 I mean so why would you expect good 41:29 education with zero competition creepy 41:32 that you're running for several years 41:34 ago we just wondering why you weren't 41:35 elected quite a lot of people they're 41:38 not people to vote for me you know the 41:41 person who ran against the primary was 41:43 linda mcmahon she lost the general 41:45 election but she just got appointed by 41:48 Trump to be the head of the small 41:49 businesses that's right just saw that 41:50 today 41:51 yeah not just George Carlin used to say 41:54 all you need to be admitted in college 41:56 newsagency pencil but i see so many 41:58 similarities between the real estate 42:00 bubble and the student loan bubble and 42:02 all these chips that go to college these 42:04 days 42:05 yeah I want to be an underwater basket 42:07 weaver shouldn't there be an 42:09 organization at least you'd be keep it 42:12 going with government guarantees that 42:14 looks at the future let's say that it 42:15 takes 45 years for you the finisher your 42:18 degree shouldn't look at the future to 42:20 see that job will be in demand and if 42:23 it's not well I think of it no built 42:26 people even know I mean look you think 42:27 the government should not be involved in 42:30 this at all 42:31 you know that's the only way to do it is 42:33 and that and that would get the cost out 42:35 if the government stepped away and no 42:37 longer provided loans for guaranteed 42:40 loans colleges would have to slash their 42:43 prices that's the only way they would 42:44 have any customers because nobody can 42:46 afford to go without the government help 42:49 so let me go to take it out of the 42:50 equation taken back the the government 42:53 of the questions let's leave it between 42:54 the bank and the student shouldn't the 42:57 student provide if you want i need to 42:59 buy a business we need to provide a 43:00 business the party how about you know 43:03 what a business way most banks won't 43:06 loan students money to go to college 43:07 it's a it's too risky alone you know 43:09 without the government lot of point 43:12 there's a point over my father for 43:15 example went to college and his parents 43:19 had no money so he waited tables over 43:22 the summer at a at a lodge McCaskill's 43:24 and he paid for school if the government 43:28 got out of the way college would be so 43:30 inexpensive that nobody would have to 43:33 borrow money to go that's the point 43:34 because they would have to compete 43:36 yes the only reason colleges expensive 43:38 is because of the loans take away the 43:41 loans and the prices go down and of 43:43 course you know not as many people would 43:46 go to college right so you wouldn't have 43:48 to spend six years you can get out and 43:49 43 you know on a but people go to 43:53 college now you know that shouldn't go 43:56 you know why you know i mean if you 43:59 could barely get out of high school if 44:01 you're one of these kids that you know 44:03 was a sea student in high school you 44:05 know what's the point of going to 44:06 college and many of its good that there 44:08 are a lot of you know you could make a 44:09 living you don't have to be a doctor you 44:11 want to be a lawyer you know there's a 44:13 lot of people you know you can make a 44:14 very good living 44:15 I you know doing doing stuff that that 44:18 you don't learn in college now you don't 44:21 have to say for the longest time I work 44:23 for a fortune 100 company and at the 44:25 beginning I had to stop going to college 44:27 because i was being promoted but it was 44:29 the pressure the pressure from everybody 44:31 well if you need to be promoted you need 44:33 to have your degree 44:34 it really made it didn't make a 44:36 difference to me but it was that 44:38 pressure now these kids I mean there's 44:41 so many derogatory terms being used 44:42 against the basement dwellers snowflakes 44:45 in the land of you name it 44:47 but at the same time these kids are 44:49 coming out of college with a degree 44:51 that's worthless they cannot buy a home 44:54 that will that do to the real estate 44:56 market in the future will open holidays 44:58 and yeah take a rented apartment right 45:01 up broke they are you know what it would 45:03 be much better instead of leaving home 45:05 with your 18-minute graduate high school 45:07 and living in a dorm or off-campus 45:11 housing and barring all this money going 45:13 to college you can just skip College 45:15 live with your parents you know for a 45:18 few years after get out of high school 45:20 get a job and then when you're 21 22 you 45:23 have a good job that we make us some 45:25 money you won't have any debt now you 45:27 can move out of your parents house and 45:29 live on your own 45:31 what's the point of going to college for 45:32 a few years and now you're stuck in your 45:33 parents house until you're in your 45:35 thirties or forties it's 45:37 I ask somebody from the government the 45:39 other day why do we have to guarantee 45:40 student loans and the answer was because 45:43 there's too much money to be made 45:45 that's why lobbyists are totally in 45:48 favor of keeping it the way it is 45:49 how do we hold that equation Ebola the 45:52 the university's love it they make a ton 45:55 of money and colleges I the landings the 45:58 lenders the banks make a ton of money 46:00 the losers are the students they're the 46:03 ones that end up with all the debt or 46:05 the taxpayers are the losers when the 46:07 students can't repay the debt and 46:08 they're stuck with the bill so you know 46:11 this is a situation where government 46:13 gets involved in housing and so they run 46:15 up the cost of housing and now we have a 46:17 housing bubble we have all this mortgage 46:18 that what are they doing with 46:19 automobiles look we've got an auto 46:21 bubble now trying to get all these you 46:23 know keep money and government you took 46:25 over a lot of the auto lending and 46:27 balance out the auto companies and you 46:29 now people you know I'm more auto loans 46:31 kinda like a mini mortgage now for 46:33 people and so you know the government 46:36 anything the government gets involved as 46:38 a complete disaster on the other hand 46:40 look at the things where the government 46:42 is not involved like you know consumer 46:44 electronics right there 46:47 everything gets better everything gets 46:49 cheaper and everything gets better you 46:51 know that's because that's the free 46:52 market that's competition so we want 46:55 that in education we want that in 46:57 housing we want that in healthcare the 46:58 government is screwed up healthcare why 47:00 is healthcare costs rising so much you 47:02 know you know they always try to say 47:04 well you know the reason that healthcare 47:06 is more expensive is because you know 47:08 now it's more sophisticated we can you 47:10 know we can do more things now it's more 47:13 complicated so it costs more 47:14 you know that's what they would say 47:16 about computers you know if governments 47:18 made computers will be wired computer so 47:20 expensive now 47:21 well they just look at all the things 47:23 they do today I mean the computers are a 47:25 lot more powerful than what they used to 47:26 be and they have a lot more caught a lot 47:28 more complicated and that's why they 47:30 cost so much money but the reality is 47:32 computers are cheaper today than they 47:34 were five ten years ago even though 47:35 they're better so that's what the free 47:37 market we got the government out of any 47:39 healthcare 47:41 healthcare would be cheaper today it'd 47:42 be better and cheaper I it would be just 47:45 like a cell phone or more flat screen TV 47:48 that's what the free market does it 47:51 makes things better and it makes them 47:53 less expensive the government makes 47:55 things worse and mixed case more expand 47:57 the business propaganda and as you saw 47:59 during your your one-percenter meeting 48:02 there at a New York many people when 48:05 they hear wall street when they hear 48:07 capitalism they have been brainwashed by 48:09 don't know hoop to completely demonize 48:12 that aspect and they just want to trust 48:14 their well-intentioned government 48:16 yeah you know but you know the important 48:19 thing though I think that people need it 48:21 was recognized that it was bad as alway 48:23 was I mean what we're heading for is 48:25 going to be a lot worse and you know if 48:27 you weren't prepared financially for 48:29 that I mean you've got to be prepared 48:30 for this next one because there's no 48:32 there's no bailout right i mean the 48:34 markets came back right the government 48:36 was able to reflate the bubble so if you 48:38 held on to your house 48:39 hey maybe a bounce back to stock 48:41 portfolios certainly came back but 48:43 there's going to be no coming back from 48:45 this next one so people have to really 48:47 be prepared and know that's really what 48:49 i think is the most important thing that 48:50 I can help people with now is really 48:53 getting their financial house in order 48:55 particularly if you're nearing 48:57 retirement or you're already retired you 48:59 have a portfolio that you're hoping to 49:02 you know without your retirement on the 49:05 income generated from that portfolio you 49:08 have really got to act quickly because 49:10 the biggest losers are going to be the 49:12 savers and investors who are just not 49:14 positioned who are going to bear the 49:15 brunt of this because you know this is 49:18 gonna be a giant default whether it's 49:22 legitimate honest or through inflation 49:24 and so a lot of people can be left 49:26 holding the bag and it's very 49:28 unfortunate but if you act now if you 49:31 you know you can do something you can 49:33 get your money and out of us assets you 49:36 can invest in places like Switzerland 49:38 and Singapore Hong Kong or new zealand 49:40 or country so i really think will 49:42 provide some solid opportunity and 49:45 protection from really what's gonna be 49:47 going on here so I i would encourage you 49:50 you might my company your pacific 49:52 capital i manage money I have 49:54 broker-dealer your pack com is the 49:56 website EU ro PA people can visit 50:00 that that you contact me I you know 50:03 definitely like you know sign up for my 50:04 weekly digest it so there you know 50:07 keeping I you know abreast of what's 50:09 going on as you want to bring up the 50:12 auto bubble but that here we were 50:13 thinking about the subprime mortgage 50:15 crisis but this is a 1 trillion dollar 50:17 consumer auto loan bubble remember a few 50:19 years ago when i went to Florida for a 50:22 visit and you turn on the TV 50:24 almost every channel on a sunday 50:26 afternoon ahead 50:27 auto dealers selling their vehicles 50:30 never never talked about how much the 50:32 vehicle was worth just the monthly 50:36 payment is this what brainwashing people 50:39 do stage 50:40 well I mean like everybody you know 50:42 wants that new-car it no and in fact you 50:45 know a lot of these young people that 50:47 are living with their parents I mean 50:48 that's basically you know that's all 50:50 they got to show for themselves the car 50:52 right you know some people are living in 50:54 their cars so that's what another reason 50:56 that people can pay a lot of money for 50:58 cars but I you know if you're 25 to 30 51:02 year old kid live with your parents i 51:03 mean at least you can drive a nice car 51:05 you know you might be able to take a 51:07 girl out of the date or you know you 51:09 would actually buy that those are you 51:10 live with your parents 51:11 some people and the government is making 51:13 it easier for people to qualify low down 51:15 payments no downpayment seven years I 51:18 you know loans 0% financing leases and 51:24 you know that and I think you a lot of 51:26 people to are taking out these low 51:27 mileage Lisa's you know they're getting 51:29 let's say 10,000 miles/year and they're 51:31 driving their cars 15,000 miles and they 51:34 have no idea how much they're going to 0 51:36 what police this up you know they're not 51:38 going to have the money to pay guess 51:40 they're broke right there are living 51:42 paycheck to paycheck so yeah I mean this 51:45 is another gigantic bubble but you know 51:47 people have been suckered into it by 51:49 government just like they get people to 51:51 buy lottery tickets you know you get 51:52 these for people you know I lottery 51:56 tickets with money that they should be 51:57 using for you know food you know but the 52:00 government crops everybody you know and 52:02 it again people to act recklessly and 52:05 irresponsibly how much of this 52:07 is attributed to the Federal Reserve 52:09 into central banks should a lot of it I 52:12 mean without the said I mean another 52:13 this would be possible 52:14 you know guess it's just if the 52:16 government had to borrow real money that 52:18 they had actually tax us if we were 52:19 still wouldn't be standard yeah well the 52:22 people wouldn't put up for it i mean we 52:23 we need to go back to that to sound 52:27 money and that is the the thing you know 52:29 one way that people can do that and i'm 52:32 very excited to be associated with this 52:34 company I its company called gold money 52:37 and my gold company shift goal is now 52:40 part of old money i had myself physical 52:43 precious now but gold money and 52:45 everybody everybody listen to this pot 52:47 you interview the first thing that you 52:49 should do at the end of the interview is 52:50 go to gold money calm and open up an 52:53 account you go it's very quick he do it 52:55 for free and what it is you can buy gold 52:58 right you just take your visa or 53:00 mastercard and by 25 bucks 50 bucks 53:03 worth of coal 53:03 ah and the only cost is a half percent 53:07 see to buy the gold so you pay half a 53:09 percent over spot which is very very low 53:10 but it's like a bank account except is 53:14 in gold you'll get a free mastercard 53:17 right that you can now use you can use 53:20 it indicate any place they take 53:22 MasterCard you can put it into an ATM 53:24 and get cash out right and you're 53:27 spending your goal and but more 53:31 importantly let's say that you want to 53:35 give your goal to somebody else or you 53:38 want somebody else to give you gold you 53:40 can transfer so let's say you have fifty 53:42 dollars with the gold and you want to 53:43 give somebody five dollars worth of your 53:44 goal you can just text it to him 53:47 you can email to them you can you can 53:49 facebook it to him you could just give 53:50 them your bolt and now LOL the goal that 53:52 you want this is real gold you own 53:54 involved with your name on it brings 53:57 fault 53:57 and so what this is doing is it is 54:00 basically letting you put yourself on a 54:03 gold standard you know before the 54:04 government camp with paper money we were 54:06 all using gold but paper was more 54:08 convenient to spend rather than lugging 54:10 around bars goal but with the internet 54:13 and would gold money you can have your 54:15 gold stored it evolved and now you can 54:17 spend it as easily as you can spend 54:20 the cash that you have in the bank in 54:22 fact the easier if i want to send 54:24 somebody in Europe a hundred I euros how 54:28 would you do that if you're an American 54:29 even happy years have you send somebody 54:31 a hundred euros I mean you're going to 54:33 go to a bank and buy some euros and then 54:35 put them in an envelope and mail them to 54:37 your friends in Europe you know what's 54:39 that gonna cost how long is that gonna 54:40 take are you gonna go to a bank and wire 54:42 the eurozone you know the wire would 54:44 cost fifteen twenty dollars i mean that 54:46 means to 15 but i can send somebody a 54:49 hundred euros worth of my goal right now 54:51 and they know and they can control his 54:53 goal and they can pull it out as euros i 54:56 bought it with dollars they sell it for 54:57 euros or they could just transact when 55:00 you have a gold money account you can 55:02 earn gold you can have your paycheck i 55:05 direct deposited as gold into your 55:07 account now your landlord you can you 55:09 can allow your tenants to pay their rent 55:11 a goal that you can pay your bills and 55:13 golden mean they're going to develop an 55:14 entire ecosystem right now they got 1.3 55:17 million users i think i'll have a 55:19 hundred million users all around the 55:21 world that are going to be now in a 55:24 platform where they can transact with 55:26 one another in gold but transact with 55:28 everybody else in paper-money because 55:31 they have a debit card and the guy on 55:33 the other side the debit card doesn't 55:35 know you know that you've got gold in 55:37 your account because he's getting euros 55:39 or dollars whatever you know whatever 55:40 whoever you're spending but i think it's 55:43 going to be like our fedex disrupting 55:46 the post office or uber disrupting the 55:49 taxicabs the government's product 55:52 government money is no good 55:55 it loses value every year through 55:56 inflation you put your money in the bank 55:59 you get no interest and there's always 56:01 the risk that the bank fails so you got 56:03 to put your money into the banking 56:04 system where it's at risk they pay you 56:06 nothing for taking that risk and 56:08 inflation is eroding away the value of 56:11 the money that you don't spend 56:12 alternatively you open up a gold money 56:15 account you have real gold in your 56:16 account 56:17 it doesn't use value there's no risk of 56:19 failure because it's not a bank account 56:21 it's not a liability you own the goal in 56:24 fact you could take physical delivery of 56:25 your gold whenever you want it 56:26 that was my next question what about the 56:28 people who say well I don't trust people 56:30 who say they have the goals I can't 56:32 touch it 56:32 no you can have it when 56:34 were you want you going to order it out 56:35 you can get it in as small as 10 gram 56:38 cubes right so it's there it's 56:41 deliverable is yours 56:43 I and but you know i can buy a cup of 56:45 coffee with i can buy a packaging gun so 56:48 you can spend tiny amounts of your gold 56:50 or i can buy a car with I can you know 56:51 why whatever I want so I think it's a 56:54 great system I think it's just going to 56:56 explode it's like a paypal only better 56:58 because it's paypal with gold right and 57:02 it's going to be universal ones are 57:05 right there i think i'm going to take 57:06 payments with this because I've been 57:08 taking payment of course caching and so 57:09 on Bitcoin what's your take on Bitcoin 57:12 before we can talk about gold money 57:13 again because i want to because i think 57:14 yeah I think gold money is better than 57:16 Bitcoin because bitcoin has no history 57:20 as being a a commodity 57:24 it's just being used as as money but it 57:28 has no alternative use other than that 57:31 so if people decide they don't want you 57:34 know Bitcoin anymore it's worthless but 57:37 gold has a multi-thousand your history 57:40 as a valuable element as a valuable 57:43 commodity that people want irrespective 57:46 of its up you know function as as money 57:50 so you you really know what gold is 57:52 worth you have long-standing 57:53 relationships between an ounce of gold 57:56 and a barrel of oil you know I mean you 57:59 go back to Roman times and you know if 58:01 you lived in a room thousands of years 58:03 ago a quality toga Roman toga that you 58:06 know maybe a senator would buy that 58:09 Roman toga cost announced the goal a 58:12 good toga 58:13 well how much is a good suit gold 1,200 58:15 bucks in out that's about the size of 58:17 the cost of a of a quality men's suit 58:19 right you have that relationship going 58:22 back thousands years you know how much 58:25 the total cost in Bitcoin well who the 58:27 hell knows Bitcoin didn't exist until 58:28 five six years ago so you don't have a 58:31 historic relationship between bitcoin 58:33 and bitcoin has no value can't do 58:35 anything with this point when I've got 58:37 gold on a ring I've got gold in my watch 58:40 people have gold in their teeth 58:41 there's gold in cellphones golden 58:43 medicine people use gold right it has 58:46 you know you could do that 58:47 as with other than spend it as money so 58:50 you know yeah i mean taking payment i 58:53 mean if you're gonna take payment in 58:54 gold it's cheaper it's cheaper than visa 58:56 is cheaper the mastercard it's the 58:58 cheapest way to transact online and 59:02 through gold and of course you know i do 59:03 you have to be online there are maybe I 59:05 could just you can have a nap i think 59:08 advice if my cell phone is next to your 59:10 celebrated directly like pass them on my 59:12 goal right for me to you 59:14 well there's this concern that people 59:16 have with Bitcoin dead government may 59:19 say milk enough no more of this but gold 59:22 as you say you want a thousand-year 59:24 history 3784 program is what is she on 59:26 the website right now and put away if 59:28 you have bitcoins you can use your 59:30 bitcoins to buy gold into your goal 59:33 money account they accept Bitcoin how 59:35 you can buy your how old with your 59:37 bitcoins so that's what I'm going to do 59:38 that because I get in a fight cold but 59:41 3784 program say somebody puts a 59:44 thousand dollars with the gold 59:46 fluctuation what happens next day when 59:48 the gold changes to have 1000 yeah your 59:52 gram total stays the same so if you have 59:54 a thousand grams unless you spend it 59:57 right your thousand grams are still 59:58 there but the dollar value of those 60:00 grams is going to fluctuate as the price 60:03 of gold changes so if the price of gold 60:05 goes up one percent I then your goal is 60:09 worth one percent more than you paid if 60:11 the price of oil goes down one percent 60:13 then your grams are worth one percent 60:14 last right there's gonna be a 60:16 fluctuation but I think over time the 60:18 price of gold is going to go up when it 60:20 went when the century began right goal 60:23 was under 300 hours and out 60:25 it's more than triple it so you know and 60:27 i think it's got a long way to go you go 60:29 back to nineteen seventy one goal was 60:31 thirty-five dollars and out now it's you 60:33 know 1175 right so it's a gold goes up 60:37 it doesn't go up every day it doesn't 60:39 even go up every year but over time it 60:42 just goes up you know that's the 60:44 opposite of dollars or euros or yen they 60:47 just go down over time they buy less and 60:49 less than less if you think back it know 60:52 what could you buy for a dollar 60:54 ten years ago what could you buy 20 60:55 years ago you know versus what you can 60:57 buy today 60:58 you can find more with your goals but 61:01 you buy less with your dollars right 61:03 prices go down in terms of gold but they 61:06 go up in terms of dollars would you 61:09 recommend is more for somebody who wants 61:10 to make a deposit for long-term rather 61:13 than somebody who wants to go put money 61:14 in and out 61:16 no bows i mean you use it i mean you can 61:19 use your gold for commerce and where you 61:21 can save it right for the future and 61:23 spend it later but the beauty of gold 61:25 money is your goal is liquid at all 61:27 times in fact i have my credit card in 61:29 my wallet my debit card and basically 61:31 i'm carrying around all my gold you can 61:33 have a million dollars worth of gold in 61:35 your account and you're carrying it 61:38 around in your wallet 61:39 it's ok you can do you get buy a house 61:42 with it you wanted to but also or I 61:45 could buy you know something small so 61:48 it's great you know and there's free 61:50 storage i'm up to a thousand grams which 61:52 is about 40 grand that's free storage 61:54 then cost you anything sort I mean it's 61:56 the best deal online no storage costs 61:59 its allocated gold is your goal is gonna 62:01 bring vault you can select involved in 62:04 Switzerland or vault in Singapore or 62:07 toronto or go anywhere in the world you 62:09 want you know you can see how much you 62:11 have we're involved in and good thing 62:13 too is if you refer your friends you can 62:16 earn some free gold for everybody that 62:18 signs up so you know you as you 62:20 introduce more people into the community 62:21 by emailing everybody that has an 62:24 account gets a special code and then you 62:27 can send that code to your friends by 62:29 email or text and then if they use that 62:31 code to sign up you'll get a little free 62:33 goal that you could spend it 62:35 this is great information for all our 62:37 listeners starting the new year with a 62:39 safer place to put your money 62:41 what happened such a forty thousand 62:42 dollars well then you're going to start 62:44 paying it's very low i think inside like 62:46 15 basis points 2 years so four hundred 62:49 thousand dollars a Gold Glove that I 62:52 think it'd be kinda hard to get our year 62:54 for the storage so it's a lot you know 62:57 to have your bedroll store but for a lot 62:59 of people never even get to the forties 63:01 out you know the hot thousand grams but 63:03 by the way to right now if you sign up 63:05 right now we just launched a promotion 63:07 today who have to be to 10 people that 63:09 sign up the most users right in their 63:12 referral between now I think january 63:15 something the top 10 people will be 63:17 auctioned off and that the winners are 63:18 going to get two tickets to this year's 63:20 Super Bowl plus airfare to that too i 63:23 think it's houston higher fare in three 63:26 days hotel and the tickets though 63:28 those who are listening to very test 63:30 tonight that I want to refer to gold 63:32 money is their way to look at a special 63:34 link for them to grow up 63:36 yeah well i mean if you want to if you 63:38 you can put the link on your site and 63:40 then on the website to your show make a 63:43 banner and let people click on it and 63:45 then every time they find out you'll get 63:47 a little gold 63:47 let's do that folks because as you know 63:49 any any any funds that come our way 63:51 helps with Productions will just go to 63:53 our website that retails that 63:55 will have a banner right there but we 63:57 have one more hour left with Peter shift 63:59 when we come back Peter was able to 64:02 envision what the collapse was going to 64:04 be and he's officially another one like 64:07 him to paint a picture what the tripwire 64:10 event might be the most importantly how 64:13 to circumvent adore how to protect 64:15 yourself from it 64:17 Peter how can people get in touch with 64:19 your work and be more familiar with it 64:21 well there's a lot of ways to find me on 64:24 the internet first of all you know i do 64:25 my own uh blog a podcast rather I used 64:30 to do our daily syndicated radio show 64:32 which I no longer had time to do so i 64:34 stopped at the peter schiff show but I 64:36 do this podcast on shift so 64:39 check that out and the podcast is you 64:41 know also you itunes stitcher wherever 64:44 that podcast and pick it up 64:46 I do a lot of YouTube videos on my 64:48 youtube channel shift report going you 64:50 know subscribe to my youtube channel if 64:52 you're a subscriber every time I do 64:54 something new you know you'll get an 64:55 alert that there's a new video posted 64:57 but and all my podcast i also end up 65:00 putting on my youtube channel as well 65:02 well he and also people should read my 65:05 books I mention ship to get 65:08 copies of my books including the the 65:10 Christmas do I've got going Alan how 65:13 economy grows and why crashes but 65:14 remember my gold company ship 65:16 and my brokerage firm and asset 65:19 management company Europe pacific 65:20 capital your pack com that's really 65:22 important especially if you got the 65:24 larger amount of money you really need 65:26 to protect yourself talk to one of my 65:27 broker's about having us manage your 65:30 money and getting your portfolio repose

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