The Joe Rogan Experience - Joe Rogan Experience #1002 - Peter Schiff

00:00:03.000 Five, four, three, four.

00:00:07.000 Boom.

00:00:08.000 And we're live.

00:00:08.000 Peter Schiff.

00:00:09.000 How are you, sir?

00:00:10.000 I am good.

00:00:11.000 I am good.

00:00:11.000 Thanks for having me back.

00:00:12.000 Thanks for coming back.

00:00:13.000 Yeah, it's been three years.

00:00:15.000 It has been a while.

00:00:15.000 And you've grown a lot.

00:00:17.000 I'm so impressed with what's happened to your podcast, your popularity.

00:00:21.000 Well, thanks, man.

00:00:21.000 Thank you.

00:00:22.000 Hopefully a little of that trickles down to me.

00:00:24.000 I'm sure it will.

00:00:24.000 You look good, dude.

00:00:25.000 You look healthy.

00:00:26.000 You look vibrant.

00:00:27.000 Well, you know, I got a little bit of beard going.

00:00:29.000 I've been living in Puerto Rico.

00:00:31.000 Yeah, we were talking about that off air.

00:00:33.000 Tell me about that.

00:00:34.000 Like, what prompted that decision?

00:00:37.000 Well, you know, I live in Connecticut, and unlike Southern California, where you are fortunate enough to still live, I lived here for a long time, years and years ago.

00:00:46.000 But we have seasons, and one of them is winter, and it tends to be very long, and it normally kind of moves into the fall and the spring a bit.

00:00:55.000 And so I had been thinking for years about kind of splitting my time between Florida and Connecticut, because I love...

00:01:01.000 New England in the summer.

00:01:02.000 It's beautiful this time of year.

00:01:04.000 And I like the beginning of fall, you know, when the leaves are still on the trees and it's not that cold and it's pretty.

00:01:10.000 And, you know, spring is nice, too.

00:01:12.000 But I can forget all the winter.

00:01:13.000 So I was going to move to Florida until I found out about Puerto Rico.

00:01:18.000 And I found out about this, actually, because I read an article interviewing John Paulson.

00:01:24.000 It was John Paulson.

00:01:25.000 John Paulson, billionaire, hedge fund guy, made a lot more money than me, shorting subprime.

00:01:30.000 I did the same trade.

00:01:31.000 I just didn't make as much money as he did, because I didn't start out with nearly as much money, but in any event.

00:01:36.000 But he made a lot of money shorting subprime, and he's a hedge fund guy.

00:01:40.000 And he was investing down in Puerto Rico, and I was like, oh, what's he doing?

00:01:44.000 What's going on down there?

00:01:46.000 And I found out, and I had never known this, that Puerto Rico as a U.S. territory, Americans who live in Puerto Rico don't have to pay federal income taxes on the money they earn from Puerto Rico, which would include any of your capital gains on your investments.

00:02:03.000 And I'm like, wait a minute.

00:02:04.000 I mean, all I have to do is move to Puerto Rico.

00:02:06.000 I don't have to pay any federal income taxes because anybody can move there.

00:02:08.000 You don't need a work visa.

00:02:11.000 You pick up and move there.

00:02:12.000 It's just like moving to another state, right?

00:02:14.000 And so the minute you move there...

00:02:16.000 You don't have to pay federal income taxes, but Puerto Rico has its own taxes, so you have to pay the Puerto Rico taxes instead.

00:02:22.000 And up until recently, I mean, Puerto Rico's income tax, I think, tops out at 30%.

00:02:27.000 It's still cheaper than the U.S., and there's no state income tax.

00:02:31.000 That's all you've got, right, is the 30%.

00:02:33.000 But a few years ago, Puerto Rico got smart, and they said, well, how do we attract...

00:02:41.000 Well, let's just drop that income tax down. 0.89

00:02:45.000 And so they basically created these two laws, Act 20 and Act 22. And Act 22 is for individuals.

00:02:51.000 And it says, hey, if you move to Puerto Rico, you have zero capital gains tax on any capital gains, and you have zero taxes on any interest and dividends that you earn locally.

00:03:02.000 And then they passed another act, which was Act 20, and they said, hey, if you open up a business here, you have a company, you're going to pay a 4% corporate tax to Puerto Rico, and then you can pass on all the profits in dividends to yourself tax-free.

00:03:16.000 No tax in Puerto Rico, no tax in the United States.

00:03:20.000 And, you know, that's a great deal.

00:03:23.000 That seems to be worth a tremendous amount of money.

00:03:25.000 It is.

00:03:25.000 I mean, it depends on...

00:03:26.000 But you effectively double your income by moving there, practically.

00:03:30.000 Wow.

00:03:30.000 Because you're not splitting your income with the government.

00:03:34.000 Right.

00:03:34.000 And so I checked it out when I heard about it.

00:03:39.000 Because first, it's like Puerto Rico.

00:03:40.000 Do I really want to live there?

00:03:41.000 I'm thinking West Side Story.

00:03:43.000 I don't know much about Puerto Rico.

00:03:46.000 But, you know, it's beautiful.

00:03:48.000 I mean, I live in a town called Dorado Beach, and, you know, it's very, very nice, the weather and just the tropical location, and there's a lot of good people there.

00:04:00.000 A lot of people have been moving there.

00:04:01.000 Obviously, I'm not the first person to take advantage of this, and so there are a lot of people that have come from California to get out of, you know, California taxes, or the Northeast, the Midwest, you know.

00:04:12.000 Plus, when you come from the Midwest or the Northeast, you also help yourself get out of the cold weather.

00:04:17.000 California, it's pretty much all a tax thing.

00:04:20.000 I mean, no one's leaving Southern California other than really taxes, because you've got such great weather here.

00:04:26.000 But we enjoy living there.

00:04:28.000 My wife enjoys it.

00:04:29.000 She's met a lot of people.

00:04:30.000 I've met a lot of people.

00:04:31.000 And the crazy thing is, you have this movement now in Puerto Rico where they want to become a state.

00:04:37.000 Which is ridiculous, because if they became a state, all the problems they have would be that much worse, because Puerto Rico is in trouble today, despite the fact that you don't have to pay federal income taxes there.

00:04:48.000 I mean, what happened was the Puerto Rican government, which was very socialist, they borrowed a lot of money, and they spent a lot of money to get elected, and a lot of people in Puerto Rico work for the government, and a lot of people are on welfare, food stamps, and stuff like that.

00:05:03.000 But big government is what destroyed the Puerto Rican economy, and they borrowed a lot of money.

00:05:08.000 But if on top of that, Puerto Rican residents that actually had jobs had to pay the federal income tax, you know, it's not just the federal income tax that doesn't apply down there.

00:05:16.000 It's the Obamacare tax.

00:05:18.000 You know, people wanted Obamacare repealed.

00:05:19.000 If you moved to Puerto Rico, you've repealed it for yourself, because the taxes don't apply down there.

00:05:24.000 They don't even have to pay the federal gas tax.

00:05:27.000 Without all those taxes, they're still in trouble.

00:05:29.000 So can you imagine how much worse it would be if they had all these taxes, if all of a sudden the IRS descended on Puerto Rico like an infestation of mosquitoes?

00:05:38.000 It'd be worse than the Zika virus down there to have the IRS. But there's people, they've told a lot of people, hey, if we become a state, you'll get more welfare.

00:05:47.000 Oh, so vote to become a state.

00:05:49.000 But Puerto Rico, the last thing they need is more incentives to be on welfare.

00:05:55.000 They need freedom.

00:05:56.000 They need less government.

00:05:57.000 They need to default on a lot of this debt.

00:05:59.000 And a lot of the people that own the bonds, unfortunately, have to lose some money.

00:06:02.000 But I think that as more and more people move to Puerto Rico, I've got two businesses down there now.

00:06:08.000 I'm hiring people.

00:06:09.000 I'm renting space.

00:06:10.000 I bought a lot of property down there.

00:06:12.000 More and more people like me, as people come to Puerto Rico, the economy is going to improve.

00:06:17.000 It's going to get better.

00:06:18.000 But if they become a state, they're going to destroy all that potential.

00:06:21.000 They have to exploit the fact that Puerto Rico can offer such a great advantage to a businessman, somebody who wants to create a company, employ people, provide goods and services.

00:06:33.000 They can do it in Puerto Rico on a much favorable basis relative to anywhere in the continental United States.

00:06:40.000 So this is a recent thing for you.

00:06:41.000 How long have you been down there for?

00:06:43.000 Well, I moved my asset management company.

00:06:45.000 So I have a company called Europe Pacific Asset Management, and I moved that company from Southern California.

00:06:49.000 I was based in Newport Beach with that business.

00:06:51.000 And I moved it to San Juan, I think, in 2013. And then I moved it to Dorado.

00:06:56.000 So I have my office there, and I moved all my portfolio managers.

00:07:00.000 They all moved from California to Puerto Rico.

00:07:04.000 That's got to be a tough sell.

00:07:05.000 You know, they love it down there.

00:07:06.000 But was it difficult to convince people to pack up?

00:07:10.000 Which, essentially, another country.

00:07:11.000 It's not really, but it kind of is.

00:07:13.000 Yeah, it's America, but yeah, technically it's not.

00:07:15.000 Is it like Guam?

00:07:16.000 Like that kind of a situation?

00:07:17.000 Yeah, well, it's the same status.

00:07:19.000 But I've never been to Guam.

00:07:20.000 But, I mean, you do feel, it does feel a little bit like a foreign country, because English is the second language.

00:07:26.000 Everybody is speaking Spanish.

00:07:27.000 So, in a way, you know, but you look around, it's all the same restaurants, it's all the same stores.

00:07:32.000 So, it's American in a big sense.

00:07:34.000 Like chain stores?

00:07:35.000 Yeah, all the same malls.

00:07:38.000 So there's a lot of not really expats because they're actually still in America.

00:07:42.000 Yeah, you do not renounce your citizenship when you move to Puerto Rico.

00:07:46.000 You do not have to pay an exit tax.

00:07:48.000 You still travel on a U.S. passport.

00:07:51.000 Everybody that lives there is an American.

00:07:53.000 So it's like a sweeter deal than moving to Hawaii.

00:07:55.000 Yeah.

00:07:56.000 Well, Hawaii, you got high taxes.

00:07:58.000 You're still paying federal income taxes.

00:07:59.000 But you're in paradise.

00:08:00.000 Yeah, plus you're paying the state income taxes in Hawaii.

00:08:04.000 But, you know, my guys wanted to move there because it basically almost meant that their income was going to double, like, pretty much overnight because they can participate in these tax breaks.

00:08:12.000 But, you know, one of my guys is married, has some kids, and, you know, they really like it.

00:08:18.000 My single employees, I have a few young guys, you know, Good shape, working out, young portfolio managers, but they quickly got Puerto Rican girlfriends.

00:08:28.000 If you've got a job down there, that's a big plus, because most of the Puerto Rican guys, and not if you know this, but I think five of the Miss Universes have gone to Puerto Rico.

00:08:38.000 I mean, it's a small little island country, but they got some beautiful women down there in Puerto Rico. 1.00

00:08:43.000 It sounds like you're a salesperson from Puerto Rico.

00:08:45.000 Peter Schiff, you got some sort of a deal going on down there?

00:08:47.000 I should.

00:08:47.000 I've sent so many people down there.

00:08:49.000 A lot of people have moved there because of me.

00:08:51.000 I run into people all the time.

00:08:53.000 They see me on the beach, at the pool.

00:08:54.000 Hey, you're the reason that I'm here, because they heard about it.

00:08:57.000 But look, it's a good deal, and I would love to see Puerto Rico succeed as a mecca of free market capitalism.

00:09:06.000 Right now, it's a poster child for the failures of socialism, because it's the socialists that killed Puerto Rico, just like they're killing a lot of major cities in the United States.

00:09:15.000 But if we get more entrepreneurs, more business people coming to Puerto Rico, that is what Puerto Rico needs.

00:09:22.000 They don't need to be a state.

00:09:23.000 They don't need the IRS. They don't need more government.

00:09:25.000 They need the opposite of that.

00:09:27.000 So you learn Spanish?

00:09:28.000 Or are you just sort of sticking around Americans?

00:09:31.000 Well, I mean, they're all Americans.

00:09:33.000 They're all Americans.

00:09:34.000 But, I mean, I speak English.

00:09:36.000 I mean, I took high school Spanish.

00:09:38.000 So, you know, if I go through a drive-thru, you know, I got to try to use my Spanish because a lot of times they don't speak.

00:09:43.000 But...

00:09:44.000 And no one, if you talk to someone from the police or the fire department, none of those guys speak any English.

00:09:49.000 But most of the younger people, they've learned English.

00:09:51.000 And where I live, everybody speaks English.

00:09:53.000 I mean, nobody addresses me.

00:09:55.000 Once I get out of the gates of the Rich Carlton, I go out into a movie theater.

00:10:02.000 They're speaking Spanish.

00:10:04.000 And then if I say, do you speak English, then they'll talk.

00:10:06.000 But where I live, everybody addresses everybody in English.

00:10:08.000 So in that respect, you're still there.

00:10:11.000 So you live in, like, a gated area that's a part of the Rich Carlton?

00:10:14.000 Yeah, it's a gated community, but it's very large.

00:10:16.000 You know, we have a lot of golf courses.

00:10:18.000 I think three or four golf courses.

00:10:19.000 We're on the beach, and there's, you know, a lot of different places to live.

00:10:22.000 Is there any resentment from the locals?

00:10:24.000 Not that I can feel.

00:10:25.000 I mean, because, I mean, I know some of the locals could feel, hey, these guys are coming in here, and they're not paying a lot of taxes, but...

00:10:32.000 I pay a lot of taxes as just a raw number.

00:10:35.000 It's not a big percentage of what I earn, but it's a big number relative to what other people might be paying.

00:10:42.000 But, you know, I'm doing a lot.

00:10:43.000 I'm hiring people.

00:10:44.000 As I said, I rented office space.

00:10:46.000 I bought a house.

00:10:47.000 I bought a condo.

00:10:48.000 I'm going out.

00:10:48.000 So, I mean, they benefit.

00:10:50.000 They like having people doing stuff.

00:10:53.000 And so I don't see it at all.

00:10:56.000 Now, if it becomes a state status, if it changes status, will you move?

00:11:00.000 I don't know.

00:11:00.000 We'll see.

00:11:00.000 I might have to.

00:11:01.000 I mean, it won't be nearly as lucrative.

00:11:04.000 See, here's going to be the problem if they ever became a state.

00:11:06.000 See, people that live there pay a 30% income tax now.

00:11:11.000 Not people like me, but the people that were already there.

00:11:15.000 So kind of like in California, you have 10-13% income tax.

00:11:19.000 But imagine if you had to pay a 30% local tax and the federal income tax on top of that.

00:11:25.000 I mean, they have a 13% sales tax now.

00:11:28.000 They have a higher sales tax.

00:11:29.000 So if they became a state, they would be by far the highest tax state in the United States.

00:11:35.000 It'd be a disaster.

00:11:36.000 Right now, they have the lowest taxes in the United States.

00:11:39.000 So why would you want to go from having the lowest taxes to having the highest taxes?

00:11:42.000 It'd be suicide to become a state.

00:11:44.000 Yeah, so they would have their local taxes, and then on top of that, they would have federal taxes.

00:11:48.000 Yes.

00:11:48.000 So the local taxes are fairly high in terms of like a local state tax.

00:11:52.000 Yes, much higher.

00:11:53.000 Right.

00:11:53.000 But then on top of that, they don't have federal taxes.

00:11:56.000 Right.

00:11:56.000 And you know, the other thing is, Puerto Rico has a lot of debt.

00:11:59.000 I mentioned that.

00:12:00.000 Right.

00:12:00.000 But on a per capita basis, they actually have a lot less debt than America does.

00:12:05.000 I mean, your share of the national debt is much bigger than the average Puerto Rican share of the Puerto Rico debt.

00:12:13.000 Because when you live in California, not only are you responsible for the state's debt, you're responsible for the national debt.

00:12:20.000 The people in Puerto Rico are not responsible for the national debt.

00:12:23.000 So if they actually became a state, they would be in worse shape than they are now.

00:12:26.000 They would actually have more debt.

00:12:29.000 So it'd be like buying a ticket on the Titanic after you know it hit the iceberg, yet you still want to buy a ticket.

00:12:36.000 So hopefully this is all a bunch of politics, and it won't become a state.

00:12:41.000 And it'll just continue.

00:12:42.000 They'll default on a lot of this debt.

00:12:44.000 Hopefully they'll privatize a lot of things.

00:12:47.000 They'll shrink the government.

00:12:48.000 And more and more people like me will come and start creating businesses and hiring people.

00:12:53.000 And five, ten years from now, maybe it'll be the wealthiest part of the United States.

00:12:57.000 We'll say it.

00:12:58.000 Correct me if I'm wrong, but the two possibilities are it becomes a state and they get more welfare.

00:13:03.000 They get more, essentially, more aid, more money.

00:13:07.000 Yes.

00:13:07.000 Or it stays where it is and more people like you have an incentive to go there and then entrepreneurs open up businesses and then there's more opportunities and then the general wealth of the island grows and then it helps people just by virtue of more profit.

00:13:22.000 Yeah, you got it.

00:13:23.000 Becoming a state just means a bigger welfare state.

00:13:25.000 It means a greater incentive not to work and a bigger punishment if you work, because the taxes on people that work will go sky high.

00:13:35.000 So that's going to be a huge problem.

00:13:37.000 The appeal of being a state is that so many people don't work.

00:13:41.000 But one thing that we could do to help Puerto Rico is get rid of the minimum wage because they're stuck with our minimum wage, which is a disaster because the average income, the average wage in Puerto Rico is about half of what it is in the United States.

00:13:54.000 And so the minimum wage of $7.25 is like having a minimum wage of $15 an hour.

00:13:59.000 And if you're one of those people that likes a $15 minimum wage, look at how high the unemployment is down there.

00:14:04.000 Because people can't get jobs at these wages.

00:14:10.000 You know, the best example, too, of America destroying one of its possessions with the minimum wage was American Samoa.

00:14:17.000 I don't know if you ever read this, but a few years ago, Congress applied the minimum wage to all the territories, our minimum wage, which included American Samoa.

00:14:26.000 And in American Samoa, The biggest employers on the island were these tuna canners.

00:14:32.000 And so, you know, Chicken of the Sea or Starchist.

00:14:35.000 And so all these people worked in these factories canning the tuna.

00:14:39.000 And they worked in American Samoa.

00:14:41.000 Well, when the minimum wage was passed...

00:14:45.000 It made the island uncompetitive.

00:14:47.000 And so the tuna factories closed down and fired everybody.

00:14:50.000 And then, so all of a sudden there was like 30% unemployment, the island went into a massive depression, and they still haven't come out of it.

00:14:56.000 I mean, we destroyed them.

00:14:57.000 We destroyed all their jobs.

00:15:01.000 American Samoa didn't want the minimum wage, but, you know, American politicians don't give a damn, and all they care about is feeling good about themselves, not about the consequences of what they do.

00:15:10.000 And so they, you know, they imposed that minimum wage, and it was like declaring war.

00:15:14.000 Well, it had a lot of damage in Puerto Rico, just not as much as it did in American Samoa.

00:15:19.000 But if we can get rid of that minimum wage in Puerto Rico, then there'd be a lot more employment opportunities for younger, unskilled people.

00:15:26.000 They'd have the opportunity to, you know, climb up the job ladder to get some skills so they can earn We're good to go.

00:15:37.000 We're good to go.

00:15:59.000 With a U.S. crew, and then send it back to Puerto Rico, and it cost a fortune.

00:16:04.000 So that's one of the reasons that their tourism is not that competitive there, because all the other Caribbean islands can get cheap stuff dropped off on boats, but we have to wait for stuff to come on a Jones Act boat.

00:16:18.000 What was the incentive to pass the Jones Act?

00:16:21.000 It's for the unions, the maritime union, the merchant marine, to try to, because, you know, American ships are uncompetitive.

00:16:27.000 Like, if you ever go on a cruise, I don't know if you go on a cruise, but none of these cruise ships are flagged in the United States, and none of the crews are American.

00:16:34.000 That's because if you had to use an American crew with our laws, nobody could afford to cruise. 0.91

00:16:40.000 It would be too expensive.

00:16:41.000 The only way that you can have a cruise line that anybody can afford to travel on is if you flag it in some other country.

00:16:48.000 Well, because the wages are just off the charts.

00:16:51.000 But that Jones Act means if people in Puerto Rico, whatever they're going to buy, whatever they're going to consume, in order to bring it to that island, they're going to have to bring it on a U.S. flagship.

00:17:02.000 Now, that's a problem for Hawaii, too. 0.54

00:17:04.000 But the people in Hawaii are much richer, on average, than the people in Puerto Rico.

00:17:08.000 So the poorer you are...

00:17:11.000 The more you're affected by higher food costs or higher, you know, costs of everything.

00:17:15.000 So it's, you know, you have a lot of these, you know, liberal politicians, they refuse to get rid of these laws, but that would very much help Puerto Rico, just more free markets, because they have no control over that federal minimum wage or that Jones Act.

00:17:27.000 So you don't think there should be any minimum wage at all?

00:17:29.000 No, no.

00:17:30.000 No, none.

00:17:31.000 So someone working for a dollar an hour doesn't bother you?

00:17:34.000 Well, I mean, it's better than working for zero.

00:17:36.000 I mean, people think that, you know, they want to impose their morals and say, well, it's not right for somebody to work for a dollar an hour.

00:17:45.000 Well, you know, people make rational decisions, right?

00:17:48.000 And so if somebody is accepting a dollar an hour, and that must mean that nobody offered them a dollar fifty, nobody offered them two dollars.

00:17:56.000 I mean, this is a competitive market.

00:17:59.000 I mean, I know you have an employee over here.

00:18:00.000 I mean, could you pay this guy a dollar an hour?

00:18:02.000 Would he work for you?

00:18:03.000 I don't think so.

00:18:04.000 Yeah, because he could get more.

00:18:05.000 Right, but he's educated and skilled, and he's an actual audio engineer.

00:18:10.000 Well, that's the point.

00:18:10.000 Of course.

00:18:11.000 Right, but it's very difficult for people to get that sort of an education, particularly in...

00:18:15.000 Is Puerto Rico thought of as a third world environment?

00:18:17.000 No, it's not third world, but let's say some kid came in here that had no experience whatsoever, but he wanted to learn.

00:18:24.000 He wanted to just get you coffee and just sit around and be around you.

00:18:27.000 He's not that productive.

00:18:29.000 Yeah, they use interns, right?

00:18:30.000 A lot of radio stations do that, and they don't pay them anything.

00:18:32.000 I know.

00:18:33.000 That's zero dollars an hour.

00:18:34.000 I can't do that.

00:18:35.000 But maybe you pay them five dollars an hour, whatever it is.

00:18:38.000 But people are going to accept a job that's the best one they can get.

00:18:42.000 And so if somebody is working for a dollar an hour or two dollars an hour, by default, I know that they couldn't find a higher job than that.

00:18:50.000 And the reason is because they don't have a lot of skills.

00:18:52.000 But if you don't have a lot of skills, The best thing you can do is get a job so you can get some skills.

00:18:56.000 That's where you learn skills.

00:18:58.000 You get more skills.

00:19:00.000 You know, there are people that pay to get skills, right?

00:19:02.000 If you go to school, you actually have to pay tuition.

00:19:04.000 If I'm getting paid a dollar an hour while I learn something that has value, that's better.

00:19:09.000 You have people now borrowing money to learn a skill.

00:19:12.000 People graduate college and they're in debt.

00:19:14.000 That's a weird argument, right?

00:19:16.000 Because you're assuming that they're going to get a skill.

00:19:18.000 I mean, they might just be handling packages and picking them up and moving to another location or digging a hole or...

00:19:23.000 Well, even that's like, show up on time, be responsible.

00:19:27.000 So discipline, show that you can work.

00:19:29.000 Yeah, there's a lot of stuff that you learn when you have a job.

00:19:31.000 But the problem with the minimum wage is that the minimum wage basically hurts the very people that it's intended to help.

00:19:39.000 Because the minimum wage basically says, if you are a worker, If you cannot convince an employer to pay you $7.25 or $10 an hour, whatever the minimum wage is, then you cannot accept that job.

00:19:51.000 See, it doesn't hurt the employer.

00:19:53.000 It hurts the employee because it limits his options.

00:19:57.000 It limits his ability to sell his labor.

00:20:00.000 For the highest price that he can get.

00:20:03.000 And it limits his access to the job market.

00:20:06.000 You can't get on that ladder.

00:20:08.000 You remove the lower rungs.

00:20:10.000 And so I can't climb up because of this arbitrary minimum wage.

00:20:14.000 Because when you pass a minimum wage, you're not going to force an employer.

00:20:17.000 If I'm an employer...

00:20:19.000 And there's a minimum wage of $10 an hour and somebody comes to me and they can deliver $5 an hour worth of productivity, meaning if I hire that person that will benefit me by $5 an hour, I'm not going to pay them $10 an hour because then I lose $5 an hour.

00:20:34.000 The only way I'm going to hire somebody who's going to give me $5 an hour worth of productivity is if I can hire them for less than $5 an hour so I can make a profit.

00:20:44.000 So it's just like a floor.

00:20:46.000 It's like if you cannot deliver enough I mean,

00:21:01.000 there are some countries, like Singapore, does not have a minimum wage.

00:21:05.000 And, you know, the average income in Singapore is higher than it is here.

00:21:08.000 Per capita, there's a lot more millionaires there.

00:21:10.000 I mean, people have no problem.

00:21:11.000 We didn't always have a minimum wage in the United States.

00:21:14.000 I mean, this is a creation of government.

00:21:17.000 But the initial minimum wages, if you want to actually go to the origins of minimum wage in the United States, it was about trying to We're good to go.

00:21:47.000 The person who's offering the best job is not exploiting them.

00:21:50.000 They're giving them an opportunity.

00:21:51.000 And if you're denied an opportunity, I mean, there are a lot of people, oh, great, you know, they're going to get the minimum wage up to $15 an hour.

00:21:58.000 Well, what good is it being unemployed at $15 an hour?

00:22:01.000 It's better to be employed at $5 an hour than unemployed at $15 because being unemployed means you make nothing.

00:22:08.000 Where a devil's advocate would be that if you can't afford to pay someone $15 an hour, then you probably shouldn't have employees in the first place.

00:22:14.000 Your business doesn't function that well.

00:22:16.000 Does that make sense?

00:22:17.000 No, because there are plenty of jobs where you have entry-level positions.

00:22:22.000 I mean, if you think that there should be no entry-level jobs...

00:22:25.000 I mean, go back to the days of full-service gas stations, right?

00:22:30.000 Back in the day when you didn't have to pump your own gas.

00:22:33.000 Still the case in New Jersey and a few other states.

00:22:35.000 Yeah, New Jersey, you know, they mandate it, but you still don't get the level of service.

00:22:39.000 I mean, if you pulled into a gas station 40 years ago, not only did they pump your gas, but they checked under your hood, they checked your tires, they washed your windows.

00:22:51.000 You know, they did all sorts of things, you know, with your car.

00:22:55.000 They didn't make very much money.

00:22:56.000 They lived off of tips, by and large.

00:22:59.000 It was the minimum wage that eliminated almost all those jobs.

00:23:01.000 It's the minimum wage that is the reason that we have, you know, people so much self-serve.

00:23:06.000 But what happened, a lot of these people, these kids that worked in filling stations, became mechanics, because all these filling stations had a mechanic there, and they learned auto mechanics, and a lot of them went on to own We're good to go.

00:23:49.000 I worked in a shoe store selling shoes. 0.93

00:23:52.000 You're a hustler. 0.94

00:23:53.000 But you were talking about you as a young man, right? 0.99

00:23:56.000 Yes, as a kid.

00:23:57.000 A lot of people think of the minimum wage as applied to adults.

00:24:00.000 Adults that have to take care of children, that have to put a roof over their head and food on the table. 0.51

00:24:04.000 And you're saying that they shouldn't be having those jobs.

00:24:08.000 Well, by the time you are an adult with kids, you should have accumulated the skills to earn a lot more than the minimum wage.

00:24:15.000 See, that's the argument when people say, hey, you can't afford a family.

00:24:18.000 You can't support a family on the minimum wage.

00:24:20.000 Of course, you shouldn't even be trying to support a family.

00:24:23.000 If you can only earn the minimum wage, you shouldn't have a family.

00:24:27.000 You should realize, hey, I can't afford a family yet.

00:24:29.000 Let me acquire the skills.

00:24:31.000 Before I start fathering children and getting married, let me make sure I can support myself.

00:24:37.000 I mean, a lot of people who are having the minimum wage, they're living at home.

00:24:41.000 They don't need to pay the rent.

00:24:43.000 They're living rent free.

00:24:44.000 What they need is a job.

00:24:45.000 They need maybe gas money, get some money so I can take a girl out on a date. 1.00

00:24:49.000 But I got to get some work experience.

00:24:51.000 I got to get out there.

00:24:52.000 I got to know what it's like.

00:24:54.000 I've got to live in the real world.

00:24:56.000 And that's what used to happen.

00:24:58.000 I mean, you don't have all these summer jobs anymore.

00:25:00.000 Kids don't have the opportunity because the minimum wage has already priced them out.

00:25:04.000 A lot of older people now are taking those jobs.

00:25:07.000 And so the employment opportunities aren't there.

00:25:09.000 But when you just raise the minimum wage, all you're doing is raising the bar where you can get your job.

00:25:15.000 You're not helping people.

00:25:16.000 Now, there's always going to be some people that, yeah, there's going to be somebody who will make a little bit more because of the minimum wage.

00:25:22.000 There's going to be those people.

00:25:23.000 There's going to be some winners.

00:25:24.000 But you're going to have lots of people that make nothing because of the minimum wage. 0.74

00:25:28.000 And then, of course, because you're driving up the cost of labor, prices are going up.

00:25:33.000 And so who is affected the most by higher prices?

00:25:35.000 Poorer people, people who are working on minimum wage.

00:25:38.000 And not only that, you end up with less quality.

00:25:40.000 I mean, you know, I hate it when...

00:25:43.000 I call up a company, and I'm just in voicemail hell, and I'm going from one...

00:25:47.000 I would like a real person to deal with, but with a minimum wage, those jobs don't exist.

00:25:53.000 There's so many jobs that have been automated out of existence.

00:25:56.000 Or if not automated, shipped overseas where there isn't any minimum wage restriction.

00:26:00.000 That too.

00:26:00.000 I mean, that too.

00:26:00.000 Yeah, you end up...

00:26:01.000 If you actually get a real person, they're in India. 0.99

00:26:03.000 Right.

00:26:04.000 Right, but we have all these people in America who aren't working.

00:26:07.000 Why can't they do those jobs? 0.99

00:26:08.000 Yes, you're not going to be able to support a family on those jobs, but before you even get a family, you can have that job.

00:26:14.000 And then maybe, you know, five or ten years later, you'll work your way up the ladder, you'll get a skill, and then you can support a family.

00:26:20.000 But nobody is supposed to be able to support a family.

00:26:23.000 And if you try to tell an employer, hey, you've got to pay your fry cook enough money to support a family, you can't do that.

00:26:29.000 There's not enough productivity cooking french fries.

00:26:31.000 You can't support a family if all you can do is cook a french fry.

00:26:35.000 You need to learn how to do something else before you can support a family.

00:26:39.000 And you can't put that on the employer.

00:26:41.000 Now, when you say that Singapore has a higher average income and no minimum wage, is that because there's a shitload of billionaires that have moved to Singapore because they don't have a minimum wage and because they're going to exploit lower class people or people that don't make much money?

00:26:58.000 The millionaires and billionaires are really not even affected by the minimum wage.

00:27:02.000 What you'd have to look at is the rate of unemployment in Singapore, which is tiny.

00:27:04.000 Right, but do they have good tax rates in Singapore?

00:27:06.000 They do, yes.

00:27:06.000 Do they have good incentives for very rich people to move there, and doesn't that jack up the minimum wage, or not the minimum wage, rather, the average income?

00:27:13.000 Yeah, well, the fact that you have entrepreneurs that are succeeding in Singapore because they have small government and low taxes means that there's a lot of competition for workers.

00:27:22.000 And so that's what bids up wages, right?

00:27:25.000 Competition.

00:27:25.000 I mean, I've got no problem with a vibrant market bidding up wages.

00:27:29.000 You just don't want the government to try to artificially force wages above their productivity.

00:27:34.000 Right.

00:27:34.000 Because it's ultimately your productivity that determines your wages.

00:27:37.000 You mentioned that your employee here, he adds a lot of value because of his knowledge, because of his personal...

00:27:43.000 Plus, he's good to look at.

00:27:44.000 Look at him.

00:27:45.000 He's handsome.

00:27:46.000 Well, that doesn't help me.

00:27:49.000 That's what you're saying.

00:27:52.000 We're laughing, but there are a lot of people.

00:27:54.000 Look, there are a lot of people that earn more money because they're good to look at.

00:27:57.000 There are plenty of people that have paid more.

00:27:59.000 They go to Puerto Rico and they win Miss Universe.

00:28:01.000 Right, but even people hire receptionists or people hire people in certain positions because they look good and they get paid a little extra for that because that's added value to the customer experience and things like that.

00:28:11.000 But most of us can't live off of our looks.

00:28:13.000 We've got to have something else.

00:28:15.000 But it's all a function of your productivity.

00:28:17.000 You want to earn more, you have to produce more.

00:28:20.000 The government just can't mandate that people pay you more than you're worth as far as the productivity that you can deliver, because you're just not going to have a job.

00:28:28.000 You're making a ton of sense.

00:28:30.000 Obviously, I'm not a financial wizard like you are.

00:28:32.000 When you start talking about people making more money for their looks, that would be a hot-button topic in America, and people would get...

00:28:39.000 Very upset about it.

00:28:40.000 And people would say that that's a sexist viewpoint and you're objectifying these women that you have working in these positions. 1.00

00:28:47.000 What would you say to that?

00:28:48.000 Like a secretary or someone who's a receptionist who's super hot, like that you're objectifying this woman. 1.00

00:28:54.000 Well, you know, there are a lot of men and women.

00:28:56.000 Men get hired for their looks, too. 0.96

00:28:58.000 I mean, it's not just a one-way street.

00:28:59.000 Like Jamie.

00:29:00.000 It's like you said.

00:29:01.000 But look, you know, people make the most of what they got, right?

00:29:05.000 I mean, people say, hey, it's not fair.

00:29:06.000 Why should this attractive woman— Well, it's unfair to the unattractive people. 1.00

00:29:09.000 But the unattractive person could be really smart. 1.00

00:29:11.000 Maybe she ends up making more— What if they're dumb and ugly? 1.00

00:29:13.000 Well, look, you know, not everybody wins the lottery in life. 0.99

00:29:16.000 That's the problem, right?

00:29:17.000 But isn't that the problem with socialism and the idea of we should even out the playing field?

00:29:23.000 Yes.

00:29:23.000 I mean, the idea that...

00:29:24.000 And you're a competition guy.

00:29:26.000 Right.

00:29:26.000 But, you know, a famous Democrat, John Kennedy, said that life isn't fair.

00:29:30.000 Oh, that guy.

00:29:31.000 He's living a different era.

00:29:32.000 But it's not fair, right?

00:29:33.000 He's just trying to back up.

00:29:35.000 And you can't dwell on the things that you don't have.

00:29:38.000 Hey, I wish I could have been born better looking.

00:29:40.000 I could have been born taller.

00:29:42.000 You've got to make the most.

00:29:43.000 It's like playing poker.

00:29:44.000 You've got to hand, play it.

00:29:46.000 You can have the worst hand, and you can win the pot.

00:29:49.000 So, obviously, is it easier to win the hand if you've got four aces?

00:29:53.000 But you know what?

00:29:54.000 If you're a bad player, you'll win nothing because everybody's going to drop.

00:29:57.000 And so even getting the best hand doesn't necessarily mean you're going to play it right.

00:30:02.000 But, you know, it's not.

00:30:03.000 I mean...

00:30:04.000 If two people, if I want to hire somebody and the way they look, I believe, is going to help me earn more money because I think that having a more attractive person in a particular business position is going to somehow lead to greater sales.

00:30:16.000 I mean, that's really the only reason that you're going to pay somebody more money if they look good.

00:30:20.000 I go on Fox Television or CNBC. It's not an accident that all these women interviewing me are pretty hot. 1.00

00:30:27.000 Right.

00:30:27.000 I mean, unattractive women could read the news and ask me questions just as good as they can.

00:30:32.000 But they're hoping and they're betting that more guys like us are going to tune in to watch a hot chick interview me than a homely one.

00:30:40.000 And they're probably right, right?

00:30:42.000 Because probably lots of homely girls that are applying for these jobs are not getting hired. 1.00

00:30:46.000 No, I agree with you 100%, but there's a fascinating thing that's going on today where competition is thought to be in somehow, some way, shape, or form a negative thing.

00:30:55.000 And that this kind of competition, whether it's even capitalism itself is criticized, right?

00:31:01.000 Like there's a lot of people today that are in favor of socialism.

00:31:04.000 That's one of the reasons why Bernie Sanders was so attractive.

00:31:06.000 It's because like, hey, you people that are not winning this crazy competition out there, that don't have any desire, We're going to even out this playing field, and those people that are out there kicking ass and taking names, we're going to take some of that money, and we're going to just give it to everybody else.

00:31:19.000 Yeah, that is the appeal of socialism, because it appeals to the lowest common denominator.

00:31:24.000 Not only does it appeal to ignorance, but it appeals to greed, because it's an envy, like, oh, this person has so much more than me, and it's not fair.

00:31:31.000 But here's the beauty of competition, because this is why we want competition.

00:31:34.000 We all want Stuff.

00:31:37.000 And so I want people competing to sell me stuff.

00:31:42.000 I want to have as much as I can as far as consumer goods.

00:31:47.000 That's what we all want.

00:31:47.000 We want products and services that enhance our lives.

00:31:51.000 And the way we get the best products with the highest quality that deliver the most value at the lowest price is to have lots of competition.

00:32:00.000 All kinds of people competing for my business.

00:32:03.000 Hey, I've got some money to spend.

00:32:05.000 Oh, buy my product.

00:32:06.000 Buy my product.

00:32:07.000 Competition is what makes sure that I get the best thing.

00:32:11.000 You go back to the old Soviet Union. 0.97

00:32:13.000 And, you know, there was no competition.

00:32:15.000 Let's say you wanted a phone in the Soviet Union in the 1960s.

00:32:19.000 Well, you went on a waiting list, and maybe three or four years later, if you were lucky enough, you had the right connections, somebody gave you this big, fat, black phone, you know, and you had one phone, and it was very expensive.

00:32:30.000 You know, that's phones under control.

00:32:33.000 Capitalism?

00:32:34.000 Look at the phones we have.

00:32:35.000 I got a phone and I can take movies with it.

00:32:37.000 It's a computer.

00:32:38.000 It's a camera.

00:32:39.000 I used it to get here with its GPS. I mean, do you think I would have a phone like this if the government had a monopoly on phones?

00:32:46.000 Absolutely not.

00:32:46.000 And if I had to buy any government phone that they were going to put in my place?

00:32:49.000 So we all, to say that competition isn't good, all the things that we value wouldn't exist if people weren't competing with one another.

00:32:56.000 Well, I'm a big believer in competition, but one of the weird arguments that's happening now is that competition is bad, and it's a very blinders argument.

00:33:05.000 And I saw you battle against that argument with Occupy Wall Street when you went down to the park and talked to those people.

00:33:12.000 That's how I heard a lot of these very aggressive, very passionate people with a limited amount of understanding about capitalism itself.

00:33:19.000 Yeah, they had no understanding.

00:33:19.000 It's hilarious.

00:33:20.000 And it was a wonderful exposing.

00:33:23.000 But they were there, which was weird, right?

00:33:25.000 They're there, they have signs, they're screaming, they're yelling, they're angry, but yet, there's very little understanding about the system that they're rallying against.

00:33:33.000 Yeah, well, one of the reasons I went there, and if you haven't seen it, there are plenty of YouTube videos of it, there's one that's like two and a half hours, right?

00:33:41.000 That's the whole, I talked until we ran out of power, right?

00:33:44.000 I've seen them all.

00:33:45.000 I've seen about ten videos of you talking to these people.

00:33:47.000 But somebody just recently resurrected it, made a copy of it, and got another two and a half million views just a few months ago.

00:33:53.000 So I know people are watching it.

00:33:55.000 But, you know, I went down there because I sympathized with the fact that people are upset.

00:34:01.000 And that I know that the economy is not as productive as it should be.

00:34:05.000 I know there's a lot of people that don't have jobs that should have jobs.

00:34:09.000 I think that we should have a much more vibrant economy.

00:34:11.000 We should have a much higher standard of living.

00:34:13.000 There should be a lot more opportunity.

00:34:15.000 But it's not because we don't have enough government.

00:34:17.000 It's because we have too much.

00:34:19.000 And the problems that we had on Wall Street were not a function of capitalism, but a function of the government's failure to allow capitalism.

00:34:27.000 And the reason that I was predicting the 2008 financial crisis, and they were calling me Dr. Doom, the reason I knew about the housing bubble in advance and I was able to see the financial crisis coming was because I understood the dynamics at play.

00:34:40.000 I understood how the government, how the Federal Reserve How their policies were working to inflate these bubbles, and I understood the moral hazards and the consequences of what was going on.

00:34:49.000 And so when I went down to Zuccotti Park, the point I was trying to make, and not even so much to the people that were protesting, but to the people who I knew would watch the interaction all around the world, was to make the point that you are right to be upset, but you're venting your anger in the wrong direction.

00:35:06.000 They're venting their anger at people like you.

00:35:08.000 People who are successful, the quote-unquote 1%.

00:35:11.000 The 1% capitalism.

00:35:12.000 And I would say, look, it's the Federal Reserve that is the source of your problems.

00:35:16.000 It's Congress.

00:35:17.000 It's the White House.

00:35:19.000 It's not the financial district in New York City.

00:35:21.000 I mean, the free market, people in the free market are there to help you, right?

00:35:26.000 Anyone that has a business, all they're trying to do is win capital.

00:35:30.000 Your business as a customer.

00:35:32.000 They're competing to get you to buy things.

00:35:35.000 And anything that you buy, right, if you choose to buy something, if I buy something for 20 bucks, I must value what I'm buying more than 20 bucks or I wouldn't make the exchange.

00:35:44.000 So to the extent that there's a business out there trying to convince me to buy something that I value more than money, that's not going to hurt me.

00:35:51.000 The problem is government.

00:35:52.000 Government has power.

00:35:53.000 Government has brute force.

00:35:55.000 The government can force me to do things that I don't want to do.

00:35:57.000 The government can make my life worse.

00:35:59.000 A private business is just going to make my life better, right?

00:36:02.000 Because if they're not going to make my life better, I don't do business with them.

00:36:06.000 But the government is a different story.

00:36:08.000 They can pass laws.

00:36:09.000 They can pass taxes.

00:36:10.000 They can pass regulations.

00:36:11.000 And as it so happens, the laws and regulations that they're passing are making people's lives worse.

00:36:17.000 And, you know, the problem wasn't that big banks failed.

00:36:20.000 The problem was that they got bailed out.

00:36:22.000 Don't blame the banks for accepting the bailout.

00:36:25.000 I mean, what would you do if someone offered to bail you out?

00:36:27.000 Yeah, you'd take the money.

00:36:28.000 The problem is the government.

00:36:29.000 The government shouldn't have had the power to bail them out in the first place.

00:36:32.000 So the real enemy is government and the power that government has.

00:36:36.000 We have to take that power away from government.

00:36:39.000 And when you take power away from government, you create freedom.

00:36:42.000 That's what freedom is.

00:36:44.000 It's absence of government.

00:36:45.000 Now, when you say the Federal Reserve and Congress are the real issue, what is their incentive?

00:36:52.000 What is their incentive to not allow the market to thrive?

00:36:57.000 You're saying that they're the reason why there aren't more opportunities and there aren't more people working.

00:37:02.000 What do they have to gain?

00:37:07.000 Politicians have power.

00:37:09.000 They want to get elected, and they want all the perks that come with elected office. 0.78

00:37:14.000 Most people that are in government live pretty good lives.

00:37:17.000 There's a reason to do it, right?

00:37:18.000 It's not that they want to serve the people and help the people.

00:37:21.000 They want personal benefit.

00:37:23.000 Yeah.

00:37:23.000 I mean, that's all the nonsense, right?

00:37:25.000 They all pretend that they're public servants, but that's the spiel, right?

00:37:29.000 They're acting.

00:37:31.000 They're playing a part.

00:37:32.000 That's a means to an end.

00:37:34.000 They want the power.

00:37:35.000 They want the perks that come with elected office. 0.98

00:37:38.000 And so, obviously...

00:37:41.000 Well, I think.

00:38:03.000 Right.

00:38:22.000 I think?

00:38:45.000 To give money to non-productive people, they increase the incentive not to produce, and they decrease the incentive to produce.

00:38:51.000 So all this redistribution of wealth just means that there's a lot less wealth to redistribute, and everybody ends up poor.

00:38:57.000 If the politicians stayed out of it, then you'd have a lot more wealth and everybody would be better off.

00:39:02.000 But that's not, you know, the politics of it are, the things that are good economics are bad politics.

00:39:09.000 Like, take healthcare.

00:39:12.000 Why couldn't the Republicans repeal Obamacare? 0.98

00:39:15.000 Because Obamacare is terrible economics.

00:39:18.000 But here's the problem.

00:39:19.000 How's it terrible economics?

00:39:20.000 We were going to get into this the last time you were here, but we got sidetracked.

00:39:24.000 What is terrible about it?

00:39:27.000 Well, I mean, we can spend the whole show on why it's bad economics, but, you know, there's a belief out there that government is somehow going to be a more efficient provider of health care than the free market, which is just not true, right?

00:39:41.000 I mean, health care is a service, right?

00:39:45.000 Just like food, just like shelter, just like clothing.

00:39:48.000 And the free market can provide it better and cheaper than government.

00:39:52.000 I mean, that's just always the case.

00:39:53.000 Some people like it as a service, though, that becomes a part of what the government offers you, along with, you know, when you pay your taxes, they fix the roads, they hire the police, things along those lines.

00:40:03.000 They would like healthcare to be along that line as well, just like it is in the UK and in Canada and a few other places.

00:40:10.000 Yeah, and, you know, in some ways, those systems are better than the system we have now, but they're not better than the system we used to have or better than the system that we could have if it was a pure free market.

00:40:22.000 You know, but there's two things you got, right?

00:40:24.000 You've got health care, and then you've got the health insurance.

00:40:27.000 Let's look at those two industries separately, because the reason that people buy health insurance, right, is in case, well, if I get really sick, I can't afford the bills, right?

00:40:38.000 Just like, you know, people buy car insurance, right?

00:40:41.000 When you buy car insurance, you know that you still have to pay for gas.

00:40:45.000 You know, you don't expect your car insurance policy to cover the cost of gas.

00:40:49.000 It doesn't cover the cost of new tires.

00:40:51.000 It doesn't cover the cost of new spark plugs or your routine maintenance.

00:40:56.000 The reason you buy auto insurance is, hey, what if I get into a wreck and I total my car?

00:41:01.000 I don't have the cash to buy a new one.

00:41:03.000 So people buy insurance because they're insuring against something that's probably not going to happen.

00:41:09.000 When you buy your auto insurance, The anticipation is that you never put in a claim.

00:41:14.000 And you're happy to never put into a claim.

00:41:16.000 And the insurance company obviously doesn't want you to put in a claim.

00:41:19.000 They're hoping that they collect the premiums.

00:41:21.000 And the way auto insurance works is because most people don't put in a claim, because they don't get into an accident, the insurance company has the money to pay the people who do get in an accident.

00:41:30.000 And that's how insurance works.

00:41:32.000 But because of the government, health insurance doesn't work that way anymore.

00:41:36.000 Because of the government, and the government set up this system where if I hire somebody, And I pay them cash.

00:41:44.000 They have to pay income taxes on it.

00:41:47.000 If I give them health insurance instead of cash, it's tax-free.

00:41:51.000 So a lot of people all of a sudden wanted health insurance instead of cash because they didn't have to pay tax on health insurance.

00:41:58.000 And now more and more people started to want their health insurance to cover the equivalent of more gas in my car or a flat tire.

00:42:07.000 And the minute you try to pay for your routine medical cost with a third-party payer through health insurance, you have these spiraling out of control costs.

00:42:18.000 You know, because if you pulled up to a gas station and didn't actually pay for the gas, you just like put your insurance card into the pump and they didn't even have prices.

00:42:29.000 Because when you go to the doctor, you don't even know what things cost.

00:42:32.000 There's no price.

00:42:33.000 When you go to buy gas, everybody has the price right up there.

00:42:36.000 And I look around, and if one place is two cents cheaper, that's where I'm going, right?

00:42:40.000 But if the gas stations didn't even bother to put the price, and they said, what do you care what the gas costs?

00:42:44.000 The insurance company's paying for it, right?

00:42:46.000 And that's what we have with the healthcare system.

00:42:48.000 Yeah, I mean, we have a system that government created where people...

00:42:50.000 Rely on health insurance to pay for everything.

00:42:53.000 Health insurance should just be for very expensive things that are probably not going to happen to you, right?

00:42:59.000 I get hit by a car.

00:43:00.000 I get cancer.

00:43:01.000 You shouldn't use your health insurance every time you go to the doctor.

00:43:04.000 And if we got people to pay for their health insurance the way they pay for their auto insurance or their life insurance, if we separate health insurance from employment, health insurance will be much cheaper.

00:43:16.000 You know, it's the government that married the two. 0.99

00:43:19.000 Right?

00:43:20.000 And that's why people say, well, if you lose your job, you lose your health care.

00:43:23.000 That's because of the government.

00:43:24.000 Fix the tax code, and people, you know, you don't lose your auto insurance when you lose your job.

00:43:29.000 But the other important thing, and here's why Obamacare doesn't work. 0.96

00:43:33.000 See, the thesis of Obamacare was, hey, Let's make it so that insurance companies can't discriminate against people that have a pre-existing condition, right?

00:43:43.000 So they can't charge people more money just because they happen to be sick, right?

00:43:48.000 This was one of the appeals of it.

00:43:50.000 Now, here's the problem with that.

00:43:51.000 The only reason people buy insurance when they're healthy, health insurance, is because they know they can't buy it when they're sick.

00:43:57.000 Like, let's say with the auto insurance.

00:44:01.000 There was a law that said that auto insurance companies couldn't discriminate based on pre-existing conditions.

00:44:06.000 If you can buy the policy after your accident...

00:44:10.000 And get coverage for the same price as if you bought it before, right?

00:44:14.000 Nobody would buy auto insurance.

00:44:16.000 You would just wait until you had an accident.

00:44:18.000 But isn't auto insurance a weird argument because auto insurance is mandatory?

00:44:22.000 Like, you have to have it, whereas health insurance is not mandatory.

00:44:25.000 Obamacare kind of makes it mandatory, right?

00:44:28.000 But you're just saying it's mandatory for the wrong aspects of insurance?

00:44:31.000 That it covers the wrong things?

00:44:33.000 Well, even, look, fire insurance isn't mandatory either.

00:44:36.000 But auto insurance is.

00:44:38.000 In certain states it is, and of course not all coverage is mandatory.

00:44:42.000 Compulsory coverage.

00:44:43.000 You have to have some.

00:44:44.000 Which is similar to what you're talking about with health insurance.

00:44:46.000 Compulsory health insurance, like for catastrophic injuries.

00:44:50.000 Well, they made it...

00:44:51.000 Obamacare made it compulsory.

00:44:53.000 The point is this, that if auto insurance was not compulsory, and you can just decide whether or not you wanted it...

00:45:01.000 If there was a law that said that insurance companies couldn't discriminate, nobody would buy it because you would just wait until after you had an accident.

00:45:07.000 Right, but the problem is not just that.

00:45:09.000 The reason why auto insurance is a bad example is because you're going to hit my car and you're going to do damage to me.

00:45:13.000 If you have no insurance on your car, I'm not going to run into you on the street and collide with my body and hurt you.

00:45:20.000 And somehow or another, I don't have health insurance and so you get injured from me.

00:45:25.000 Don't you think that's a different argument?

00:45:26.000 Well, rather than even make that argument, let's just go to fire insurance because there's only one person involved, me.

00:45:31.000 So I have a house.

00:45:32.000 Would I buy fire insurance if I can go to an insurance company after my house already burns down and buy the policy for the same price?

00:45:40.000 So the reason that people buy fire insurance policies before their house burns down is because they know that nobody will sell them a policy after it burns down.

00:45:49.000 Right.

00:45:50.000 The insurance companies couldn't stay in business if the only people who were buying policies were people whose houses already burnt down.

00:45:55.000 I agree with you.

00:45:56.000 So here's what happened with Obamacare.

00:45:58.000 So Obama says, we're going to make it so insurance companies can't discriminate against people who are sick.

00:46:03.000 Well, the result of that is no healthy person is going to want to buy insurance.

00:46:07.000 It's a waste of money.

00:46:08.000 Why pay premiums when you're not sick?

00:46:10.000 Wait until you get sick.

00:46:11.000 And then they can't discriminate against you because you have a pre-existing condition.

00:46:15.000 So the way Obama tried to combat that was, okay, we're going to force people to buy insurance.

00:46:21.000 We're going to require employers to provide it. 0.99

00:46:24.000 And if you don't get it from your employer, we're going to fine you.

00:46:27.000 You're going to have a penalty if you don't buy the insurance.

00:46:30.000 Right.

00:46:31.000 Two things about that.

00:46:32.000 One, the penalties were too low, right?

00:46:34.000 Because the penalty for not buying insurance is so cheap that it's cheaper to not buy insurance, pay the penalty, and then wait till you get sick to buy the insurance.

00:46:42.000 That's why the insurance companies are losing all this money, and that's why premiums are skyrocketing, because nobody wants to buy, because the penalties were too low.

00:46:52.000 But politically, everybody likes the idea that insurance companies can't discriminate based on preseason.

00:46:58.000 So what the Republicans tried to do was have their cake and eat it too.

00:47:01.000 They said to the voters, we're going to keep the ban on pre-existing conditions, but we're going to get rid of the mandates.

00:47:08.000 We're going to get rid of the penalties.

00:47:10.000 You can't do that.

00:47:11.000 You have to have both.

00:47:12.000 The real problem was the penalties were too low.

00:47:16.000 They needed to jack those penalties up because so many people were paying the penalty and not buying the insurance.

00:47:22.000 But the reality is we need a free market insurance because the Republicans want to say, you should be able to buy the type of coverage that you want.

00:47:29.000 You should be able to buy the kind of insurance, which is true.

00:47:31.000 But then insurance companies have to be able to deny you coverage if they don't want to cover you.

00:47:35.000 They have to be able to charge you more if you're already sick.

00:47:39.000 I mean, the only way to have inexpensive insurance It's for the insurance companies to discriminate and to charge people more money if they're already sick.

00:47:48.000 And it's because of that, that's why healthy people buy policies, because they know, hey, let me buy it now while I'm healthy.

00:47:55.000 Because if I happen to get sick, that's going to be a lot more expensive.

00:47:58.000 So what the government is trying to do is just trying to destroy the market for health insurance.

00:48:02.000 Meanwhile, the costs are skyrocketing.

00:48:05.000 Insurance is getting more expensive.

00:48:06.000 Healthcare is getting more expensive.

00:48:09.000 If you go back to the days before the government was involved, healthcare was not a problem.

00:48:15.000 It wasn't expensive.

00:48:16.000 You know, in the 1920s, 1930s, 1940s, 1950s, healthcare was not expensive.

00:48:21.000 People didn't worry about medical bills.

00:48:23.000 They were not high.

00:48:24.000 If you needed catastrophic insurance, it was inexpensive.

00:48:27.000 If you had to go to the doctor, it wasn't expensive.

00:48:30.000 You know, people didn't even worry about it because there was quality care And it was, you know, at a low cost.

00:48:36.000 And with all the advancements that we've had in medicine, with all the technology, with all the drugs that are here, healthcare should be cheaper today than it was in the 1940s and 1950s on a real basis.

00:48:50.000 You know, and I hear all the time people make the argument, well, the reason that healthcare is more expensive is because it's more complicated now, because we do all these things that we didn't do.

00:49:00.000 Well, If that was true, then why isn't my cell phone today more expensive than a cell phone 10 or 20 years ago?

00:49:06.000 Because obviously this does...

00:49:08.000 No, it is.

00:49:08.000 No, it's not more expensive.

00:49:09.000 No, it certainly is.

00:49:10.000 It's just you get subsidized by your company.

00:49:13.000 Or they drag out the payments.

00:49:16.000 If you buy a cell phone from Verizon, they're not selling you the full...

00:49:20.000 Like if you buy an iPhone 7, they're not selling it to you at the full rate.

00:49:23.000 The full rate would be Like $1,000, $1,200.

00:49:25.000 Yes, but I paid $1,000 in the 1980s for my first cell phone that didn't do jack compared to this.

00:49:32.000 The very early days, the Gordon Gekko ones.

00:49:34.000 Yeah, well, that was even more.

00:49:35.000 But look, I've got this MacBook Air in front of me here.

00:49:39.000 And so this MacBook Air, obviously, this cost me like $1,200, $1,400.

00:49:44.000 Right.

00:49:45.000 My first computer that I had in college was an Apple IIe.

00:49:49.000 And that computer, and I got a dot matrix printer, and I had a floppy disk, and my dad spent almost $5,000 on it in 1981. And all it was was a glorified word processor, right?

00:50:00.000 So obviously the power in this computer is so much greater than the one that I had in that Apple IIe, yet it's less expensive, even forgetting about adjusting for inflation.

00:50:10.000 It's actually cheaper in actual dollars, despite the fact that it's more complicated.

00:50:16.000 And my point is that Just because something is more complicated doesn't mean it's going to be more expensive.

00:50:21.000 Healthcare today should be cheaper.

00:50:24.000 All of the new technology should be bringing down the cost of medicine.

00:50:28.000 The reason it's not is because of government's involvement.

00:50:32.000 Because if government was involved in the computer industry the same way it's involved in healthcare, then we would see skyrocketing computer prices.

00:50:39.000 Okay, so now why does the government...

00:50:42.000 You're saying that the government wants to...

00:50:45.000 Destroy the insurance industry.

00:50:46.000 No, they don't want to destroy it.

00:50:48.000 Not destroy it, but why do they want to complicate it the way they're doing it?

00:50:51.000 Well, first of all, I don't think they're smart enough to destroy it on purpose.

00:50:54.000 I mean, it's just the unintended consequences.

00:50:56.000 They're trying to get votes.

00:50:57.000 They're trying to get elected.

00:50:58.000 And of course, you know, People want something for nothing.

00:51:01.000 So number one, you know, you get a lot of votes by promising free health care, right?

00:51:05.000 So number one.

00:51:06.000 But also, why do the insurance companies?

00:51:07.000 Because there are massive subsidies for insurance companies, right?

00:51:11.000 If I can get the government to require people to buy my product, then I don't have to offer a good product, right?

00:51:16.000 I mean, wouldn't you like the government to require everybody to listen to the Joe Rogan podcast if that was mandatory?

00:51:21.000 No, people would be super furious at me.

00:51:23.000 I like to keep it exactly the way it is.

00:51:25.000 But there are a lot of businesses, rather than having to win...

00:51:29.000 Well, maybe if you had a lousy podcast that nobody listened to, you'd want the government to say, hey, too many people are listening to Joe Rogan.

00:51:35.000 Force them to listen to my podcast instead.

00:51:37.000 So, you know, you have these big healthcare companies or insurance companies that want something from government.

00:51:42.000 They want the government to mandate people buy their product or to protect them from competition.

00:51:46.000 You know, you can't...

00:51:47.000 If you wanted to buy an insurance policy from a Japanese company or a Swiss company, you can't do it.

00:51:52.000 They can't...

00:51:53.000 Some Swiss company can't come over here to California.

00:51:56.000 Hell, they won't even let companies from other states sell you policies.

00:51:59.000 I mean, why is that?

00:52:00.000 We need more competition, but government is protecting companies from having to compete with one another so they don't have to do as good a job.

00:52:07.000 But Obama was already in office, right, when he was trying to do this?

00:52:10.000 What was the incentive for trying to pass this once he's already in office?

00:52:14.000 Well, A, he wants to get re-elected, which he did.

00:52:17.000 He did get re-elected.

00:52:19.000 But there's a lot of political payoff.

00:52:20.000 You have to pay off the people that help put you in office.

00:52:23.000 And he wants to help other Democrats get elected and maintain that power.

00:52:30.000 Did anybody ever debate this with him in this sort of rational, pragmatic way, the way you're laying it out right now?

00:52:36.000 I have no idea.

00:52:37.000 And you don't know. 1.00

00:52:38.000 When it comes to a politician, you don't know if they're doing stupid things because they're stupid. 1.00

00:52:42.000 Or because they don't care that they're dumb. 1.00

00:52:44.000 Or they don't understand the ramifications of what they're trying to propose. 0.99

00:52:48.000 Well, as I said, people believe in liberal philosophy or these programs either because they're ignorant or because they have an ulterior motive, right? 0.96

00:52:57.000 There are probably some politicians there that are actually dumb enough to think that this is a good idea, right? 0.95

00:53:03.000 Like we talked about the minimum wage. 0.94

00:53:04.000 There are some people that actually believe that it's a good thing, right?

00:53:08.000 They don't know how bad it is, but they're doing it because they're thinking with their hearts and not with their heads.

00:53:14.000 But there are probably some people who support the minimum wage knowing that it's bad, but they know it's good politics, or they're afraid to come out against it because that's such bad politics.

00:53:24.000 So you don't know for sure if somebody is in favor of something, do they actually realize how bad it is?

00:53:29.000 Right.

00:53:30.000 And they're doing it anyway? 1.00

00:53:31.000 Or are they just dumb enough to actually believe it? 0.98

00:53:33.000 I have to say, if you adjust for inflation, you're probably right about cell phones. 0.98

00:53:36.000 Because I'm thinking now, like a Motorola StarTAC.

00:53:39.000 Oh, yeah.

00:53:40.000 How much were those?

00:53:41.000 Those were expensive.

00:53:42.000 How much were they when they came out?

00:53:43.000 I think they were like five or six hundred bucks.

00:53:45.000 But if you adjust for inflation, you might be right.

00:53:46.000 Yeah, and think about how much it cost to use them.

00:53:48.000 I remember when I had my first...

00:53:49.000 That's the big one.

00:53:50.000 The roaming costs were extraordinary.

00:53:52.000 But even if you didn't roam, my first...

00:53:53.000 Long distance.

00:53:54.000 Remember long distance?

00:53:55.000 Yeah, my first plan, I think when I was in it, I had my first phone...

00:53:59.000 And I think it was like 70, 80 bucks a month, and I had like a half hour of talk time.

00:54:03.000 Right.

00:54:04.000 So if someone called me on my cell phone, I was quick, because I had to quickly get off, because if you went over your minutes...

00:54:09.000 Right.

00:54:10.000 You know, now I have unlimited...

00:54:11.000 Not only is it unlimited, I can talk...

00:54:13.000 I can see people.

00:54:14.000 I see their faces.

00:54:15.000 I can talk to people in other countries for free.

00:54:18.000 Well, now there's companies that are offering unlimited data, too.

00:54:20.000 And you don't even have data back then.

00:54:22.000 They're competing.

00:54:23.000 Yes.

00:54:23.000 Because they're competing.

00:54:24.000 Okay.

00:54:24.000 It was a thousand bucks.

00:54:26.000 Oh, so I'm wrong.

00:54:27.000 Yeah.

00:54:27.000 See, especially if you adjust for inflation, right?

00:54:29.000 Oh, yeah.

00:54:30.000 And then quality. 0.99

00:54:31.000 And just for inflation, if a StarTac phone, which was a piece of shit, comparatively, it was amazing at the time. 0.97

00:54:36.000 And the battery lasted like a half an hour, 45 minutes of, you know... 0.96

00:54:40.000 And so a brand new iPhone is probably like 1,200.

00:54:44.000 So, yeah.

00:54:45.000 You adjust for inflation.

00:54:45.000 You're right.

00:54:46.000 Now, when you're talking about Bernie Sanders...

00:54:50.000 And you're talking about some of the policies that that guy was proposing and some of the idea of, you know, Robin Hooding the whole deal, taking from the rich and giving to the poor.

00:54:58.000 That's extremely appealing to people, right?

00:55:01.000 How do you lay it out to people in a way that they can understand that although this looks like a great idea, That this is not a good idea.

00:55:11.000 And ultimately, it's not going to benefit you.

00:55:13.000 It's going to make things stagnant.

00:55:15.000 It's going to make things harder for business.

00:55:17.000 And it's going to make things harder for jobs.

00:55:18.000 A lot of people listening right now, even me saying that, they're tweeting me.

00:55:22.000 They're getting mad. 0.99

00:55:22.000 You fucking chill. 0.99

00:55:23.000 You sell out. 1.00

00:55:25.000 Are you one percenter, you piece of shit? 1.00

00:55:27.000 That's the thought process behind anybody who says anything even remotely negative about socialism, that you have to be some sort of a sellout, or you just want to keep things the way they are so that you can benefit. 1.00

00:55:40.000 And it's amazing that so many people find socialism appealing, yet they'll say, oh, you know, fascism is really bad, right?

00:55:46.000 The Nazis were really bad. 0.84

00:55:48.000 They don't realize that the Nazi Party, that stands for National Socialism. 0.69

00:55:52.000 That's what it was.

00:55:52.000 It's National Socialism.

00:55:54.000 So socialism is a broader economic theory that encompasses communism and fascism.

00:56:00.000 They're both forms of socialism.

00:56:03.000 It's all bad, right?

00:56:04.000 And the whole idea, the whole premise of socialism is bad.

00:56:08.000 The free market, being a libertarian, is all about the individual.

00:56:13.000 It's about freedom and recognizing the value of the individual and their rights to pursue their own self-interest, their own happiness, the property.

00:56:23.000 But in your question, how do you talk to people and get them to see How bad socialism is.

00:56:29.000 I mean, first of all, I mean, look at the countries that have tried it in its extreme form, right?

00:56:35.000 Whether it was like the Soviet Union or North Korea or Cuba or East Germany.

00:56:42.000 You could look at examples where you had, you know, people moving in this direction, these promises of, you know, from each according to his ability to each according to his need.

00:56:49.000 And it was a disaster.

00:56:51.000 So it's not like we don't have...

00:57:02.000 I mean, obviously, you know, socialism is going to exist in a certain degree.

00:57:07.000 It's hard to find any place on the earth now where there isn't some elements of socialism that have crept into the economy.

00:57:13.000 But the extent that Countries have managed to limit the amount of socialist policies they have.

00:57:19.000 They have maximized the standard of living of their people.

00:57:23.000 Look at Venezuela.

00:57:27.000 That's a good example.

00:57:28.000 And President Trump was tweeting out not too long ago, oh, he's upset that they don't have enough democracy.

00:57:35.000 We need more democracy.

00:57:36.000 They don't need more democracy.

00:57:37.000 Democracy is what got them into trouble because they voted for socialists.

00:57:41.000 What they need in Venezuela is more capitalism.

00:57:43.000 They need more freedom.

00:57:45.000 Not just more people voting for other socialists.

00:57:47.000 So the appeal of socialism, essentially the same appeal of turning Puerto Rico into a state, that you're going to get something for it.

00:57:54.000 It's going to benefit the people.

00:57:55.000 Yeah, I mean, people like the idea of getting something for nothing.

00:58:00.000 And there is a certain, if you think of it superficially, and that's why there's an old expression, right?

00:58:06.000 If you're not socialist, by the time you're 20, you don't have a heart.

00:58:09.000 But if you're not a conservative, by the time you're 30, you don't have a brain.

00:58:11.000 Right.

00:58:11.000 It's because people are caring.

00:58:14.000 I mean, in general, most people care about their fellow human beings, including conservatives and libertarians.

00:58:19.000 I mean, they care too.

00:58:20.000 Just that a lot of liberals think that conservatives are mean because they don't support these programs.

00:58:26.000 It's not because they're mean.

00:58:27.000 It's just that they recognize the unintended consequences of these programs, that the programs actually make it worse for the people that you're trying to help.

00:58:34.000 But younger people who don't have as much real-world experience They don't know any better. 0.62

00:58:38.000 So it's very easy to be a socialist when you're 16, 17, 18. You've never had a job.

00:58:43.000 You've never run a company.

00:58:44.000 You don't have much real-world experience.

00:58:46.000 But you're a caring human being.

00:58:48.000 So I don't fault young people for being socialists.

00:58:52.000 But when you get to your 30s and your 40s and you haven't grown up, to me that's like a little kid still believing it's Santa Claus.

00:58:58.000 How come you didn't learn anything?

00:59:00.000 Here's Bernie Sanders.

00:59:01.000 He's like, you know, what is he, 70-something years old?

00:59:03.000 And he thinks like a teenager.

00:59:05.000 I mean, he didn't learn anything from all this life experience.

00:59:08.000 He didn't get any smarter.

00:59:10.000 Well, doesn't he have a bunch of houses?

00:59:12.000 I think Bernie owns a few houses.

00:59:14.000 I think he does.

00:59:16.000 I mean, he's in hot water right now because his wife, she decided to go full-on capitalist for this small college and buy up a bunch of land, and the company went bankrupt.

00:59:28.000 Yep, yeah.

00:59:29.000 The college, which is essentially a company, right?

00:59:30.000 But the way that you can get young people to understand, look, most people, even if they're not in the 1%, they want to get to the 1%, right?

00:59:38.000 But some people would say that's not true.

00:59:40.000 Some people would say, no, it's not what I want.

00:59:41.000 I want to be comfortable and I want to pursue whatever my interests are.

00:59:45.000 Right, but what, and again, and what are those interests?

00:59:47.000 I mean, people...

00:59:48.000 Maybe they're art, maybe it's, you know...

00:59:50.000 But they still have to eat.

00:59:52.000 They still need clothes.

00:59:54.000 But they just want to be comfortable.

00:59:55.000 They don't necessarily want to be a one percenter.

00:59:57.000 Right.

00:59:57.000 But you're going to get those things better from the free market.

01:00:01.000 The free market is going to make you more comfortable than a government program.

01:00:05.000 And if you're just trying to have a shortcut and say, look, you know, just steal some money from that rich person and give it to me.

01:00:11.000 But most people even don't just want to squeak by.

01:00:14.000 I mean, most people want to achieve something.

01:00:17.000 They want to strive to get the most they can out of life.

01:00:20.000 And, you know, if you want to get a job, I mean, somebody has to hire you.

01:00:24.000 Somebody has to have the capital.

01:00:26.000 Somebody has to be able to pay you.

01:00:27.000 You're not going to get a job from a poor person.

01:00:29.000 They don't have anything to offer.

01:00:31.000 They don't have capital to give you.

01:00:33.000 They can't write a paycheck.

01:00:35.000 You know, so people will understand, hey, I got my first job from somebody in the 1%. 0.99

01:00:38.000 Okay, you know, and now I'm in the 1% myself because, you know, I was able to gain some experience, gain some knowledge, you know.

01:00:46.000 So you could talk to younger people and really show them the different, a different path.

01:00:51.000 One is, you know, relying on government and thievery because that's really, you know, most people would agree that theft is wrong.

01:00:58.000 If the two of us got together and beat you up, although obviously we can't, but assuming we could, we beat you up and we took your money, you would say, that's wrong.

01:01:07.000 You can't do that.

01:01:08.000 Well, if we got together and voted for a congressman to take your money, we outvoted you two to one, why is that any better?

01:01:14.000 Why is it okay to steal through the ballot box, but it's not okay to do it directly?

01:01:19.000 So the argument against that would be that it's not stealing, that you're just creating policies that even the playing field- No, that's stealing.

01:01:25.000 People that are in the 1%, like these hedge fund dudes that have these giant houses in the Hamptons, they've accumulated massive amounts of wealth and they're using that to influence politicians and change laws.

01:01:36.000 Well, they shouldn't be able to use it to influence politicians.

01:01:39.000 That's why we have to take the influence away from politicians, take away that power. 0.99

01:01:43.000 But there's a wealthy hedge fund guy.

01:01:45.000 That doesn't mean I have the right to go steal his Maserati just because he's rich, and I don't have the right to tax him to take that Maserati either.

01:01:52.000 It's just another form of theft.

01:01:54.000 When you believe in the free market or libertarian, you know, you're giving somebody the idea, look, you don't have to get rich by stealing what somebody else has.

01:02:01.000 You can do it on your own.

01:02:02.000 And, you know, you can benefit from what other people have.

01:02:05.000 Because the only way people get rich in a free market is by delivering services that other people value.

01:02:12.000 The only exception is if you get rich through government connections.

01:02:15.000 And that is not a fault of capitalism.

01:02:17.000 That is a fault of government.

01:02:19.000 When you empower government to sell favors for the highest bidder, That is not an indictment of capitalism.

01:02:24.000 That is socialism, right?

01:02:26.000 And so that's what we have to stamp out.

01:02:27.000 We have to make sure that you can't succeed by bribing a politician.

01:02:31.000 That you can't use government power to create wealth.

01:02:34.000 That if you want to get wealthy, you have to be wealthy as a result of voluntary interactions with other human beings without government involvement, right?

01:02:41.000 Government is there to protect my rights.

01:02:45.000 We're good to go.

01:02:48.000 We're good to go.

01:03:00.000 They're just not...

01:03:01.000 Maybe they have deformities, or they're not smart enough, or they have some kind of...

01:03:05.000 And they can't fend for themselves.

01:03:07.000 Yes, I recognize that.

01:03:08.000 But my solution for that is not to steal from some wealthy person and give the money to somebody who needs it.

01:03:16.000 I believe in voluntary charity.

01:03:18.000 I believe that human beings care enough about other human beings that if somebody really is in a dire circumstance, that private charity...

01:03:26.000 We'll take care of them.

01:03:27.000 And what I do know is when you have private charity, it's very efficient.

01:03:31.000 If you donate a dollar to a charity, 90 cents is going to go to the people who need money.

01:03:37.000 Ideally.

01:03:38.000 There's obviously some massive exceptions to that.

01:03:41.000 But with the government, the government will take a dollar in taxes and only 10 cents will go to the poor people.

01:03:46.000 The rest of it goes to the government bureaucracy.

01:03:48.000 And the problem with government is when you have a private organization, They really want to do good, right?

01:03:54.000 I mean, you have these government anti-poverty programs.

01:03:57.000 They don't want to end poverty.

01:03:58.000 They want to expand poverty.

01:04:00.000 They want more poverty because then their program gets bigger.

01:04:03.000 Then they have more power.

01:04:04.000 The last thing they want to do is end poverty because now they no longer have a job.

01:04:08.000 So they're not there to try to make sure that the people who are getting the aid actually need the aid.

01:04:13.000 I mean, it's different when it's private money and private charity.

01:04:16.000 You know, there you're really trying to do good instead of just perpetuate the poverty so you can grow your power base.

01:04:22.000 Have you ever sat down with Bernie Sanders?

01:04:24.000 No.

01:04:25.000 Wouldn't you love to?

01:04:26.000 Wouldn't you love to have a debate with him?

01:04:27.000 Like a long-form conversation, like a three-hour podcast?

01:04:30.000 You know, I wouldn't shy away from it.

01:04:32.000 I mean, you know, I do know he's so old at this point that it's hard to believe that I'm going to persuade him that he's wrong, that he's going to come to his, you know, after living an entire life believing in something.

01:04:42.000 Well, I'm not even necessarily saying that you would persuade him, but it would be nice to see people counter, or hear, rather, the counter to his arguments that he puts forth that are very appealing to a lot of these young people that you're talking about if you're 20 and you're not a liberal, you don't have a heart.

01:04:57.000 You know, that these...

01:04:58.000 These ideas are very pervasive in our culture, and they were thought to be the solution to the ales that we're in.

01:05:05.000 They were thought to be the solutions to the problems with the bailout.

01:05:08.000 Why is the government getting all this money and giving it to the banks when they could be giving it to poor people and propping up the income inequality?

01:05:17.000 Yeah.

01:05:18.000 That conversation is a very weird one.

01:05:20.000 And that was a big problem, and I knew that at the beginning because, see, I was against the bailouts.

01:05:24.000 But I knew that when the government bails out banks, now you've created a precedent.

01:05:29.000 Wait a minute.

01:05:29.000 If you're going to bail out those banks, why not bail out the little guy?

01:05:32.000 And I have a lot of sympathy for that argument.

01:05:34.000 But I don't think two wrongs make a right.

01:05:37.000 We shouldn't have bailed out the banks.

01:05:38.000 See, the government shouldn't steal money from one person and give it to somebody else.

01:05:44.000 You know, regardless of who they're giving it to.

01:05:48.000 But once you create that precedent, and of course, you know, a lot of people should have been allowed to lose money in that financial crisis.

01:05:54.000 A lot of banks should have failed.

01:05:56.000 A lot of people should have lost their jobs.

01:05:57.000 And they didn't.

01:05:59.000 And so that's a moral hazard because the government created a condition that said, hey, if you're going to speculate and do all these things, we're going to bail you out.

01:06:07.000 And you have to realize that it was the government.

01:06:09.000 The government was guaranteeing all those mortgages.

01:06:12.000 The government was guaranteeing all those bank deposits.

01:06:15.000 The government was, through Fannie and Freddie, encouraging reckless activity, encouraging Banks to make loans to people who they knew couldn't pay it back.

01:06:24.000 I mean, all this was rooted in government incentives and government subsidies.

01:06:28.000 If there was a pure free market, the banks would not be able to assume all that risk.

01:06:32.000 But because the government had their back, then they were able to do things that the free market never would have allowed.

01:06:39.000 That's why for years, while the housing bubble was going up, I was pointing this stuff out.

01:06:43.000 I mean, you go and look at some of the YouTube videos.

01:06:47.000 You know, for all of my appearances back then that eventually became that Peter Schiff was right video.

01:06:53.000 I understood the ultimate consequences of what the government was doing.

01:06:59.000 But then the bailouts just allowed the government...

01:07:02.000 The government never wants to waste a crisis.

01:07:05.000 They always want to use the crisis to get bigger, to get more power.

01:07:08.000 We should have learned something from the 2008 financial crisis.

01:07:11.000 Instead, we have repeated all the mistakes.

01:07:14.000 Everything that has been done by Janet Yellen and Ben Bernanke...

01:07:18.000 Since the financial crisis has actually made the U.S. economy worse.

01:07:21.000 We're in much worse shape now economically, so I think the crisis that we're coming to, the next one, is going to be much worse than the one we had in 08. I'd love to get to that in a second, but what was the argument for the bailout?

01:07:36.000 Well, the argument for the bailout was that the banks were just so big, right?

01:07:39.000 They were interconnected.

01:07:40.000 Too big to fail.

01:07:40.000 Yeah, and that if we let them fail, it's just going to be so much worse, right?

01:07:46.000 Because we've got to bail them out, because even though it's bad, it'll be worse if we don't do it.

01:07:52.000 Because people like me and maybe Jamie had money in these banks, and that money would dissolve.

01:07:57.000 Well, people would have lost.

01:07:58.000 Certainly, would the positive have lost some money?

01:08:00.000 Yes, they would have.

01:08:01.000 But, you know, I agree that had we not done the bailouts, it would have been worse.

01:08:07.000 But it would have been healthy.

01:08:09.000 It would have been a step in the right direction.

01:08:12.000 You know, you work out.

01:08:14.000 It's, you know, like no pain, no gain.

01:08:15.000 I mean, you know, like, you know, you've got to bite the bullet on this and do what's right.

01:08:22.000 Or I look at it like, you know, we were strung out on cheap money.

01:08:25.000 We were like a drug addict.

01:08:28.000 And had we just gone cold turkey and gone into rehab, yeah, it would have been a big downer, right?

01:08:34.000 It wouldn't have been pleasant, and we would have had to go through all this stuff.

01:08:37.000 But at the end of the day, we could emerge healthy.

01:08:41.000 Were there models that were being projected?

01:08:44.000 Like, did people look at the two possibilities?

01:08:46.000 Like, having no bailout, and we were looking at us here nine years later, or having a bailout?

01:08:52.000 Well, you know, I don't think they, if they looked at anything, it was just very short term, right?

01:08:56.000 Because all these guys are politically motivated, right?

01:08:59.000 An election is coming up, right?

01:09:00.000 Because all the bailouts happened in summer of 08, a lot of big ones, and the election was in November of 08, right?

01:09:08.000 I remember John McCain interrupted his presidential campaign to come vote for a TARP bailout.

01:09:14.000 And so politicians can't see beyond the next election.

01:09:19.000 And if your horizon is that short, yes, the bailouts ease the pain, but at the cost of exacerbating the underlying disease that is the cause of the pain.

01:09:29.000 So because we did all the wrong things in 08, 09, 010, instead of fixing the problems and having a healthy recovery, we had the weakest recovery in the history of recoveries.

01:09:40.000 In fact, I don't even think it's a recovery because I think the average American is sicker now than he was when the recovery began.

01:09:46.000 How so?

01:09:47.000 Well, you look at personal net worth has gone down.

01:09:50.000 Real incomes have gone down.

01:09:51.000 We've eviscerated the labor force. 0.68

01:09:54.000 I mean, people have lost good-paying jobs, and they now have two or three low-paying part-time jobs.

01:09:59.000 People are working longer for less.

01:10:02.000 Their net worths have gone down.

01:10:03.000 They're loaded up with debt.

01:10:04.000 We now have record-high card loans, record-high credit card debt, record-high student loans.

01:10:10.000 The only thing we don't have is record mortgage debt, and that's because homeownership is now at a 60-year low.

01:10:14.000 But we do have rising rents.

01:10:16.000 And so our standard of living is falling because we didn't do the right thing.

01:10:20.000 But because we didn't do the right thing, this next crisis, as I said, is going to be so much worse.

01:10:26.000 We're just going from crisis to crisis because nobody has the guts to do the right thing.

01:10:31.000 Because in the short run, it means they might not get reelected, right?

01:10:34.000 Nobody wants to get reelected promising, you know what?

01:10:37.000 Things are bad.

01:10:38.000 We've made a lot of mistakes.

01:10:39.000 We're going to have to suffer through this recession.

01:10:41.000 People are going to lose money.

01:10:43.000 People are going to lose their jobs.

01:10:44.000 But you know what?

01:10:45.000 Don't worry.

01:10:45.000 The free market is going to work.

01:10:47.000 You'll get different jobs.

01:10:49.000 Nobody has the guts to tell the truth to the voters.

01:10:52.000 Everyone wants to pretend that they've got, you know, it's like, you know, buy my miracle cure.

01:10:58.000 You don't have to work out.

01:10:59.000 You don't have to diet.

01:10:59.000 Just rub this cream on your thighs and the cellulite's going to go away.

01:11:03.000 That's what people want.

01:11:04.000 They don't want to be told you've got to hit the gym and you've got to stop eating junk food.

01:11:07.000 They want the miracle cream.

01:11:09.000 That's the guy that gets the vote.

01:11:10.000 So we set ourselves up for, I think, a currency crisis, not just a financial crisis, where Where mortgages are in trouble, but where the dollar itself is collapsing, our money is collapsing, prices are skyrocketing, it's going to really hit the average American much more than just the stock market going down.

01:11:28.000 When your money is going down, when the cost of living is skyrocketing, that is going to be a big problem.

01:11:35.000 For a lot of people.

01:11:36.000 That's where we're headed.

01:11:37.000 It's ultimately going to be a dollar crisis.

01:11:39.000 And that's really, you know, like in my business, in my brokerage firm in Europe Pacific Capital, that's what I'm trying to do is help people protect their wealth by getting out of U.S. dollar assets, by investing in Singapore and Switzerland and New Zealand and Hong Kong and other countries, owning other assets, you know,

01:11:54.000 to try to protect themselves from this crisis that, you know, is coming.

01:11:58.000 And most people are going to get blindsided by it, just like they were by the last one.

01:12:02.000 So what is the crisis?

01:12:04.000 And how exactly do you feel it's going to go down?

01:12:06.000 Because I did watch some of your videos about the housing crisis from 2008. You're predicting it years in advance.

01:12:11.000 Yeah.

01:12:12.000 I mean, look, you know, things always happen, you know, I see things years before they happen.

01:12:17.000 And you're not the only one, right?

01:12:18.000 No!

01:12:18.000 This is something amongst your peers and your colleagues.

01:12:21.000 You guys are all discussing this.

01:12:22.000 Well, I mean, there are people, most people who feel the way I do, maybe aren't, they weren't on television saying it.

01:12:29.000 They were saying it, you know, to their buddies, you know, in their own living rooms, and they were getting laughed at just like I was.

01:12:34.000 Because I used to get emails from people, hey, I've been saying, this is exactly what I've been saying, and everybody thinks I'm crazy.

01:12:39.000 And, you know, it's just...

01:12:41.000 You know, they're the same one.

01:12:42.000 It's everybody else that's crazy that just gets caught up in it.

01:12:45.000 But what's going to happen is we are going to go back at some point into another statistic recession.

01:12:52.000 I mean, I think that we've kind of been in one this whole recovery because I don't think the government numbers are really that accurate.

01:12:57.000 I don't think that inflation is as low as they claim, at least as measured by the consumer prices.

01:13:03.000 So I think that the economy has actually been contracting during the years that we've been pretending it's been growing.

01:13:09.000 But I do think at some point, statistically, we will go back into a technical recession where even the government admits that the economy is shrinking, right, where the GDP is negative for a couple of quarters in a row.

01:13:21.000 And then what is the government going to do as a result of that?

01:13:24.000 They're going to do exactly what they did before.

01:13:25.000 They're going to take interest rates and bring them back to zero from wherever they are.

01:13:29.000 The difference is, normally, they lower interest rates, and then by the time there's another recession, they're way back up 4%, 5%, 6%.

01:13:36.000 This time, they barely got them back to 1%, and they kept them at zero for seven, eight years, which is unprecedented.

01:13:43.000 And of course, the mistakes that are made are a consequence of money being too cheap, right?

01:13:48.000 The reason that we had a real estate bubble, the main reason, was because Alan Greenspan lowered interest rates to 1% and left them there for about a year and a half, and then took about a year and a half to raise them back up to normal.

01:13:59.000 So you had a few years of artificially low interest rates.

01:14:05.000 We're good to go.

01:14:22.000 We've got a much bigger bubble now.

01:14:24.000 And when this one pops, because it's so much bigger, right, so then all of a sudden the Fed has to cut interest rates again.

01:14:32.000 And now what happens to the dollar?

01:14:33.000 Because, see, the dollar has been rising these past few years because everybody thought, oh, the Fed's going to normalize interest rates, the Fed's going to shrink the balance sheet, when none of this stuff happens.

01:14:43.000 When the Fed goes back to another round of quantitative easing, when they got to crank up the printing presses, when they don't shrink the balance sheet, but they blow it even bigger, right?

01:14:51.000 It goes to $5.5 trillion, $6.5 trillion.

01:14:53.000 I think the bottom is going to drop out of the dollar.

01:14:56.000 I think the dollar is going to get killed, the opposite of what happened in 2008. When the financial crisis hit in 2008, the dollar had been falling for seven years.

01:15:03.000 It was at an all-time record low.

01:15:05.000 And then when the crisis hit, it actually caused people to buy the dollar.

01:15:09.000 But I think this next crisis is going to be the big sell signal for the dollar.

01:15:14.000 People are going to rush out of the dollar as the Fed has to go back to more QE, as people realize that this is what I said from the beginning.

01:15:21.000 This is a monetary roach motel, right?

01:15:24.000 The Fed checked us in, and they ain't checking us out.

01:15:26.000 There's no way to normalize rates.

01:15:27.000 There's no way to shrink the balance sheet.

01:15:30.000 And when people realize that this is a permanent situation, the bottom drops out of the dollar.

01:15:34.000 And then commodity prices really start to rise.

01:15:37.000 Remember when oil prices went from like $20 a barrel in 2001 up to $150?

01:15:43.000 That was happening because the dollar was falling.

01:15:46.000 And as the dollar starts to fall, all these commodity prices are going to rise again, and now inflation is really going to pick up the way they measure it.

01:15:53.000 And the government can't do anything about it.

01:15:54.000 They can't raise interest rates, because if they raise interest rates, they collapse everything.

01:15:58.000 All the banks that were too big to fail, they're bigger now, and it would be even worse if they failed.

01:16:03.000 So they can't let rates go up.

01:16:05.000 Because banks absorbed other banks.

01:16:07.000 They got bigger.

01:16:07.000 And now you have all these banks that have all these long-term loans that have low coupons on them.

01:16:12.000 If interest rates go up, all these big banks are going to fail.

01:16:15.000 I mean, people think rising rates are going to be good for banks.

01:16:18.000 They're going to destroy the banks.

01:16:19.000 They're going to destroy the housing market.

01:16:21.000 And the government.

01:16:22.000 This is the biggest thing.

01:16:23.000 Look at the national debt.

01:16:24.000 The national debt is about $20 trillion, the bonded debt.

01:16:27.000 And that, of course, that doesn't even count all the unfunded liabilities.

01:16:31.000 That's just where the government has sold a bond, a treasury bond.

01:16:34.000 That's about $20 trillion.

01:16:36.000 Well, what would happen if interest rates went to 10%?

01:16:39.000 Well, it would cost the government $2 trillion a year just to pay the interest on that $20 trillion.

01:16:46.000 We don't have anywhere close to that.

01:16:48.000 I mean, right now, interest rates are almost zero, and we're spending about $250 billion a year.

01:16:53.000 On interest.

01:16:54.000 But if interest rates actually went up, because the Fed had to fight inflation, the Treasury would have to default.

01:17:00.000 They would have to tell the croc, we can't pay on these bonds.

01:17:02.000 What are you showing me, Jamie?

01:17:03.000 Is this the national debt?

01:17:04.000 Oh, that's the national debt croc, yeah.

01:17:06.000 Oh, God, look at it spinning.

01:17:06.000 Is it at $20 trillion yet?

01:17:08.000 Oh, it's so terrible.

01:17:09.000 Pretty close.

01:17:10.000 $19.973.

01:17:11.000 Look at it spinning.

01:17:12.000 Oh, God.

01:17:13.000 Yeah, I know.

01:17:14.000 That's horrific.

01:17:17.000 Obviously, the Fed has to keep interest rates low so the government can service that debt. 0.93

01:17:21.000 Look at Medicare and Medicaid.

01:17:22.000 Jesus Christ, what is that?

01:17:23.000 Well, yeah, you can find it per capita.

01:17:25.000 You add it all up.

01:17:26.000 That's not even a billion.

01:17:27.000 Is that a trillion?

01:17:28.000 Which one are you looking at?

01:17:30.000 Right there.

01:17:31.000 What is that?

01:17:31.000 No, that's 1.1 trillion.

01:17:34.000 Oh, it is?

01:17:34.000 But that's largest budget items.

01:17:36.000 Those are budget items.

01:17:37.000 That's the budget.

01:17:38.000 Social Security.

01:17:39.000 That's not the debt.

01:17:40.000 That's what they're spending.

01:17:41.000 Oh, God.

01:17:42.000 Look at those numbers.

01:17:43.000 If you go down lower, they'll probably have all the unfunded liabilities on that page somewhere.

01:17:48.000 And then they break it down per capita, per taxpayer.

01:17:53.000 I mean, it's enormous.

01:17:53.000 But my point is that...

01:17:55.000 We've got like an adjustable rate mortgage on that national debt.

01:17:58.000 The government's got ultra cheap money.

01:18:00.000 If interest rates spike, there's no way that the government can pay that debt.

01:18:04.000 This is hypnotic.

01:18:06.000 It really is terrifying.

01:18:07.000 I've never seen it before.

01:18:08.000 I've never seen it before either. 0.99

01:18:09.000 That's why I'm saying Puerto Rico, it would be so idiotic for Puerto Rico to want to join the union and absorb their share of that debt. 0.85

01:18:18.000 Now, for the average person like myself who has zero understanding of the financial system, you listen to Trump talk about the economy booming and it's on an upward thing and unemployment is down and jobs are up. 0.92

01:18:30.000 Yeah, I mean... 0.99

01:18:31.000 Bullshit. 1.00

01:18:32.000 Yeah, that's what's really bothering me about Trump is the hypocrisy because when Trump was a candidate, And he got elected because, by and large, he told the truth about the phony nature of the recovery. 1.00

01:18:43.000 Obama was out there talking about how great things were, and Trump was like, BS, it's not great.

01:18:48.000 Oh, you're talking about low unemployment?

01:18:49.000 That number is bogus.

01:18:51.000 The real unemployment rate is 20% or 25%.

01:18:54.000 Right, because people stop looking for jobs and it doesn't count anymore.

01:18:56.000 Yeah, people are, you know, they gave up looking so they don't have a job.

01:18:59.000 They're not counted as being unemployed.

01:19:00.000 And he pointed out that all the jobs, like here, this is irony, right?

01:19:04.000 So what are the byproducts of Obamacare?

01:19:07.000 Obamacare said that if you have a full-time worker, you have to give him health insurance.

01:19:12.000 And full-time was anyone that worked 30 hours or more.

01:19:15.000 Well, employers aren't dumb.

01:19:17.000 They can do math.

01:19:18.000 Hey, if this guy is working 40 hours a week, I got to give him health insurance, which is very expensive.

01:19:24.000 But if he works 29 hours a week, I don't.

01:19:26.000 So what happened?

01:19:28.000 Employers started transitioning their workforces from full-time workers to part-time workers.

01:19:33.000 Well, what happens if I'm gonna have only part-time workers?

01:19:36.000 I'm gonna have more workers, right?

01:19:38.000 Because each one is working fewer hours.

01:19:40.000 So I'm gonna have to have more...

01:19:42.000 I have more jobs, right?

01:19:43.000 If I had 500 part-time jobs, but now I have 1,000...

01:19:47.000 I mean, if I had 500 full-time employees, but now I have 1,000 part-time employees...

01:19:52.000 That's twice as many jobs.

01:19:54.000 Obama got credit for all those extra jobs.

01:19:56.000 As we were destroying full-time jobs and replacing them with two part-time jobs, we got all these jobs.

01:20:03.000 So Trump was honest as a candidate.

01:20:05.000 These are low-paying jobs. 0.85

01:20:07.000 These are crappy jobs.

01:20:09.000 And a lot of the people that were getting jobs were older people who don't want jobs.

01:20:13.000 They were retired.

01:20:14.000 And now they're working at McDonald's part-time because they can't live on their retirement money.

01:20:19.000 And in fact, you know, When you look at the labor force participation rate that he would talk about, you know, where labor force participation is collapsing is with young people.

01:20:28.000 People in their 20s and 30s can't get jobs.

01:20:30.000 Meanwhile, 70- and 80-year-olds are working in record percentages, right, because they can't afford to retire and their grandkids can't get a job.

01:20:37.000 So Trump was telling the truth.

01:20:40.000 about how bad the economy really was and that resonated a lot of blue-collar guys a lot of Democrats in the Midwest voted for Trump because he got it he understood there he felt their pain right like Bill Clinton and Obama was in a fantasy I mean Hillary was pretending that everything was great under Obama and people didn't want four more years of that so they voted for Trump and also you know when Trump was a candidate He talked about the stock market because,

01:21:07.000 oh, the stock market was going up when Obama was president.

01:21:10.000 And Trump said, well, it's a bubble.

01:21:12.000 Who cares about the stock market?

01:21:13.000 This is a big, fat, ugly bubble.

01:21:15.000 Wait till it pops, okay? 0.92

01:21:16.000 He was right about that.

01:21:18.000 Now he's president.

01:21:19.000 What is he saying every time I see him?

01:21:21.000 The stock market's a new record high.

01:21:22.000 This is fantastic.

01:21:24.000 It's all because of me.

01:21:25.000 This is great.

01:21:25.000 And when the jobs numbers come out, oh, look how low the unemployment rate is.

01:21:29.000 This is the lowest it's been in 15 years.

01:21:31.000 I'm doing a great job.

01:21:33.000 Nothing has changed.

01:21:34.000 This is the exact same economy he inherited. 0.85

01:21:36.000 It's the same crappy jobs. 0.57

01:21:38.000 It's the same stock market bubble.

01:21:40.000 The only difference is he's not a candidate anymore.

01:21:42.000 He's the president.

01:21:43.000 And now he's trying to market the same crappy economy that Obama had and pretending everything is good.

01:21:49.000 And I wish he would stay true to the candidate and admit, you know what, the economy is still a disaster because nothing has changed, right?

01:21:57.000 He was going to drain the swamp.

01:21:59.000 Instead, he just poured more water in the same swamp.

01:22:02.000 But to actually drain it means to really shake things up.

01:22:05.000 In a way, he's shaking things up, but not the way that's going to get meaningful change for the country.

01:22:10.000 The shaking up that he's doing is not what people were voting for.

01:22:14.000 We really need real substantive economic change, but the president is not able to deliver it.

01:22:20.000 He's surrounded himself with the same cronies that were around in the Bush administration.

01:22:25.000 I mean, what good is going back to Bush?

01:22:27.000 What is his incentive to do this in the first place?

01:22:30.000 The guy's already wealthy.

01:22:31.000 I mean, and then he gets into this position, and now he's a salesman, right?

01:22:35.000 Now he's trying to sell us on his axe, and everything's great, and under him everything's booming, and it's gonna keep booming, it's gonna get better, and we're gonna make America great again.

01:22:43.000 Yeah, you know, it was a good slogan.

01:22:45.000 And, you know, Trump's always been a salesman, right?

01:22:47.000 He's a marketer.

01:22:48.000 He makes money on his brands, right?

01:22:50.000 So that's in his blood.

01:22:51.000 That's what he does.

01:22:52.000 And he obviously does it well because he became very successful, you know, marketing his brand.

01:22:58.000 And so I think he's kind of continuing that.

01:23:01.000 But, you know, does he think about his legacy?

01:23:04.000 I mean, does he want to actually make a difference?

01:23:06.000 Does he care about posterity and how he's viewed?

01:23:09.000 You know, I don't know.

01:23:10.000 I mean, is he just trying to get re-elected so he can be the president again?

01:23:15.000 I mean, I don't know.

01:23:16.000 I've never had a conversation with him.

01:23:17.000 I mean, I met him.

01:23:18.000 I think I only remember meeting him one time.

01:23:20.000 I was at a concert, and we were sitting, like, on the same row.

01:23:23.000 He was right next to me.

01:23:24.000 It was Crosby, Steele, Nash, and Young.

01:23:28.000 And he was there with his daughter and I think it was her fiancé.

01:23:34.000 I don't think they were married yet, but they're married now.

01:23:36.000 So they were there.

01:23:36.000 I got to say hello and I think that's the only time I ever met him.

01:23:39.000 And so it wasn't really, I didn't get a chance to engage him in any kind of thoughtful conversation.

01:23:44.000 I know a lot of people who know him.

01:23:46.000 I mean, I know a lot of people who have been in this circle, but they've never kind of introduced me to it, so I'm kind of, you know, I'm not really on the inside, so I can't really, you know, I don't really know.

01:23:56.000 But, I mean, I voted for him, but that was...

01:23:59.000 Why did you vote for him?

01:23:59.000 Because I didn't want to vote for Hillary.

01:24:02.000 Now, I knew it didn't matter because I lived in Connecticut.

01:24:04.000 Oh, and by the way, now that I live in Puerto Rico, I can't vote anymore.

01:24:07.000 But, you know, it's like that's one of the things people say that, oh, Puerto Rico's in trouble because you can't vote.

01:24:12.000 Who cares?

01:24:12.000 Everyone I voted for in Connecticut lost in Congress, right?

01:24:15.000 Because, you know, it doesn't matter.

01:24:16.000 They don't have congressional representation because I'd rather have no taxes and no vote than to be able to vote for who taxes me.

01:24:23.000 But I voted for him.

01:24:26.000 I mean, I normally would just vote for Gary Johnson, right?

01:24:29.000 I had voted for Gary Johnson before, because this is the second time he ran.

01:24:32.000 I voted for him last time.

01:24:35.000 But, you know, on the way to the polls, my wife was like, you know, we've got to vote for Trump.

01:24:40.000 Because it was like, he was like the best protest vote I could cast, I thought.

01:24:44.000 I thought he was a bigger in-your-face-to-the-establishment than voting for Gary Johnson was.

01:24:50.000 And they ran a bad campaign.

01:24:52.000 They really blew an opportunity to have done something with the libertarian brand.

01:24:57.000 For future elections.

01:24:58.000 So I wasn't happy with the way that campaign ran.

01:25:00.000 They had an opportunity there with how unpopular both candidates were.

01:25:05.000 But, you know, I just felt, you know, this is the wave.

01:25:08.000 And I thought Trump was going to win.

01:25:10.000 You know, everybody thought that there's no way he's going to win.

01:25:12.000 And, you know, I thought, well, he might lose.

01:25:14.000 I mean, I didn't think it was 100 percent guarantee, but I thought he was...

01:25:22.000 We're good to go. 0.87

01:25:38.000 Oh, what are you, a racist? 0.95

01:25:39.000 You know, why you vote?

01:25:40.000 But, you know, when they get in there and vote, they're going to vote, you know, their pocketbook.

01:25:43.000 And, you know, Trump was offering the most, the message that made sense.

01:25:47.000 They knew America wasn't great.

01:25:49.000 See, Hillary Clinton was like, we don't need to make America great again. 0.96

01:25:52.000 It's already great.

01:25:53.000 And the average guy is, it doesn't feel so great to me.

01:25:55.000 Right?

01:25:56.000 My standard of living is going down.

01:25:57.000 The only thing going up is my debt.

01:25:59.000 And so they voted for Trump.

01:26:01.000 But I think this strategy is going to blow up.

01:26:03.000 I don't like what Trump is doing.

01:26:05.000 What do you think his strategy is?

01:26:06.000 Well, I think he has now claimed ownership of this economy.

01:26:09.000 He has put the Trump brand on this stock market bubble.

01:26:13.000 So when the market goes down, when the economy tanks back into recession, it's not Obama's recession, it's Trump's.

01:26:21.000 I mean, he's basically taken the bait.

01:26:23.000 I think he's the fall guy, I think the Fed, everybody's going to blame it all on Trump.

01:26:26.000 Like, oh look, he inherited this great economy from Obama, which he didn't, and now look, it's a mess.

01:26:32.000 So he should not be claiming credit yet for victories he hasn't won.

01:26:36.000 He should be setting us up for this collapse that is already coming, that is not because of him.

01:26:41.000 He needs to clean up the mess.

01:26:43.000 And it's not just Obama's mess.

01:26:45.000 It's Bush's mess.

01:26:46.000 Democrats and Republicans work together to screw this economy up.

01:26:49.000 And the Federal Reserve was a big part of that.

01:26:52.000 And Trump criticized the Fed as a candidate.

01:26:55.000 All of a sudden now he loves the Fed.

01:26:57.000 Wasn't there some sort of improvement in the stock market because people had confidence that he was going to enact these changes and he was going to make things better for businesses?

01:27:04.000 Yeah, I do think that that was able to add some air to the bubble, right?

01:27:08.000 I think it was a big bubble.

01:27:09.000 And then when Trump won, all of a sudden people started thinking, hey, wait a minute, we're going to get tax cuts, we're going to get regulatory reform, we're going to get more economic growth.

01:27:19.000 And so the market rallied on that.

01:27:22.000 But I don't think that that's actually going to happen.

01:27:25.000 I mean, look, they didn't repeal Obamacare.

01:27:27.000 That was a big part of the optimism.

01:27:30.000 It doesn't look like we're going to get substantive tax reform.

01:27:34.000 The most we're going to get are tax cuts.

01:27:36.000 So we're not going to get a real reform that's going to cause a lot more economic growth.

01:27:41.000 We're just going to get bigger deficits.

01:27:42.000 We're going to lower taxes, but we're not going to reduce government spending.

01:27:46.000 And the real sad part is no one is talking about making government smaller.

01:27:50.000 Everybody wants to talk about tax cuts.

01:27:52.000 Okay, well, taxes support government.

01:27:54.000 So if you want lower taxes, you need a smaller government.

01:27:57.000 And I want both, right?

01:27:58.000 I want lower taxes, but I'm not naive enough to think I can have big government with lower taxes, because that just means bigger deficits.

01:28:06.000 And deficits are a worse way to pay for government than taxes.

01:28:09.000 So if you decide that you want to have big government, then you better have high taxes to pay for it.

01:28:14.000 And you know who's going to bear the brunt of that?

01:28:16.000 The middle class.

01:28:17.000 So if the middle class wants big government, they want lots of entitlements, then they're going to pay through the nose.

01:28:21.000 But someone has to be honest and say, look, if you don't want high taxes, then we've got to shrink government.

01:28:26.000 But they're talking about making government bigger.

01:28:28.000 Look, Trump is talking about let's spend more money on infrastructure.

01:28:31.000 Where's that money going to come from?

01:28:32.000 We're going to cut taxes and spend more money on infrastructure?

01:28:35.000 We're not going to make ourselves rich by spending money on infrastructure.

01:28:39.000 Now, what happened with the Republicans that voted against Obamacare and now vote against repealing Obamacare?

01:28:49.000 The same people.

01:28:50.000 And what is wrong with Trump's ideas when it comes to Trumpcare? 1.00

01:28:53.000 Well, first of all, those Republicans, again, are hypocrites. 0.98

01:28:56.000 They only voted to repeal Obamacare because they knew Obama would veto it. 0.99

01:29:00.000 So it was easy to grandstand, oh yeah, let's repeal it.

01:29:03.000 And it was a good talking point to get elected.

01:29:06.000 But the minute they got elected, they were too afraid to actually stand on that principle, because they didn't want to tell somebody that you can't buy insurance when you're sick for the same price as when you're healthy.

01:29:16.000 Nobody wanted to take away that free lunch that had been served up by the Democrats.

01:29:21.000 All the Republicans wanted to do is rebrand the free lunch.

01:29:25.000 They wanted to continue to serve it, but take credit for it.

01:29:27.000 They wanted to make it Trumpcare or Ryancare.

01:29:31.000 I didn't even like this whole idea.

01:29:33.000 Let's repeal and replace.

01:29:36.000 Repeal!

01:29:36.000 Don't replace with anything.

01:29:37.000 Replace it with the free market.

01:29:39.000 We don't want to get rid of Obamacare and replace it with something that's almost the same.

01:29:43.000 So what was the idea of replacing it in the first place?

01:29:45.000 What was the benefit of it?

01:29:46.000 It's all politics.

01:29:47.000 The benefit was they tried to keep the ban on pre-existing conditions, which voters liked, but get rid of the taxes and mandates, which they didn't.

01:29:54.000 But the two are intertwined.

01:29:56.000 You can't have one without the other.

01:29:57.000 So the people like the ban on pre-existing conditions because they want to know that they're covered.

01:30:01.000 If they're going in there and they have cancer, they can still get covered.

01:30:05.000 Right, but then no one's going to buy coverage if they don't need it.

01:30:07.000 I mean, you cannot...

01:30:08.000 So what happens to those people that do have cancer and all these different diseases?

01:30:11.000 Like, if we don't have universal socialist health care, how do we take care of those people?

01:30:15.000 Well, there's two things that happens.

01:30:16.000 One, a lot of them have to buy the insurance before they get to cancer, when they're still healthy, right?

01:30:22.000 I mean, I don't have cancer right now, right?

01:30:24.000 I may get it next year, in two or three years, so I have health insurance now, right?

01:30:29.000 So if I get cancer...

01:30:31.000 I'm covered.

01:30:32.000 But that's you, you're a successful guy, what about someone who's not, who's in this bad position?

01:30:37.000 Look, you don't have to be that successful to be able to afford in a free market to buy yourself some coverage.

01:30:43.000 The question is, what do you do with the person who made the mistake of not buying insurance when they were healthy, and now they get sick, And of course, once you're sick, you can't expect an insurance company to sell you a policy because the insurance company is trying to make money.

01:30:56.000 They only sell policies to people who they don't think are going to put in claims.

01:30:59.000 So you can't go to an insurance company when you're already sick and say, sell me a policy.

01:31:04.000 What's in it for the insurance company?

01:31:05.000 Nothing.

01:31:05.000 So now you've got to figure out, well, How do you take care of that person?

01:31:08.000 Well, first of all, the best thing is to make sure that person buys the insurance policy while he's still healthy.

01:31:13.000 So that means you don't have the ban against pre-existing conditions, and you allow insurance companies to sell inexpensive insurance that doesn't cover a sex chains operation or drug abuse.

01:31:24.000 How dare you?

01:31:25.000 He's transphobic.

01:31:27.000 I can't believe this.

01:31:28.000 If you just want to buy insurance that covers, like, cancer, and you're 20 or 30 years old, that's cheap.

01:31:33.000 It's very inexpensive.

01:31:34.000 It's all this other crap that they want to mandate that makes it so expensive.

01:31:37.000 But if you get a certain situation where, for whatever reason, somebody had no insurance, they have no money, and now they get cancer, well, that's what charities are for.

01:31:46.000 People donate money, hospitals.

01:31:48.000 If doctors didn't have to spend so much time on paperwork and filling out insurance forms, they would have more time to donate.

01:31:55.000 I mean, years and years ago, doctors used to give a lot of their...

01:31:59.000 Spare time.

01:32:00.000 And of course, that was before they had the income tax.

01:32:02.000 You know, when the doctors didn't have to pay income taxes, and when the doctors didn't have to deal with insurance companies, they had a lot of free time to help a lot of poor people for free.

01:32:10.000 And doctors like doing that. 0.82

01:32:11.000 Doctors get a lot of satisfaction from helping people.

01:32:14.000 That's one of the reasons that so many people become doctors.

01:32:16.000 It's a very rewarding occupation when you're a doctor.

01:32:20.000 Yes, it is lucrative and you can make money, but doctors also enjoy helping people for free.

01:32:25.000 The problem is they can't even afford to do it now.

01:32:27.000 Because all their time is spent doing other stuff.

01:32:29.000 They're also saddled down by malpractice insurance, and they also have extreme amounts of medical school debt that they have to handle.

01:32:36.000 Yeah, it shouldn't be that expensive to go to medical school, and it wouldn't be if it was a free market.

01:32:40.000 And yes, if we had tort reform, if you couldn't sue...

01:32:43.000 Look, it's funny.

01:32:44.000 I'm staying here at a friend of mine's house.

01:32:47.000 He lives in Beverly Hills.

01:32:48.000 We went to high school together.

01:32:49.000 And so he's in real estate, right?

01:32:50.000 He owns a lot of property.

01:32:53.000 One of his tenants is Starbucks, right?

01:32:55.000 He has a Starbucks restaurant.

01:32:56.000 And they just got sued.

01:32:57.000 And the person is suing him as well because he's the landlord.

01:33:02.000 So this is the circumstance.

01:33:03.000 And this is America.

01:33:05.000 So a guy, and he's, I guess he's hard of hearing.

01:33:09.000 He's not totally deaf, but he has a hearing problem.

01:33:12.000 And so he goes into the Starbucks, and the Starbucks is playing music, right?

01:33:15.000 You know, whatever.

01:33:16.000 They have background music on in the Starbucks.

01:33:18.000 And so he asks the guy behind the counter, oh, by the way, I'm hard of hearing.

01:33:22.000 Do you have this special device that I can wear while I'm in here so that while I'm in this restaurant, I can enjoy the same music as everybody else?

01:33:30.000 And the guy said, well, no, we don't have that device.

01:33:32.000 Well, he sued for $10,000 plus attorney's fees.

01:33:35.000 And now he's suing my friend, too, because he's the landlord of where the Starbucks restaurant is.

01:33:41.000 But this is America.

01:33:42.000 I mean...

01:33:44.000 That's a hilarious lawsuit.

01:33:45.000 You walk into a restaurant and you have a hearing problem, get yourself a hearing aid.

01:33:50.000 Don't force the guy.

01:33:51.000 But these are the regulations.

01:33:53.000 These are the lawsuits. 0.96

01:33:54.000 The Americans with Disabilities Act is the most ridiculous. 0.84

01:33:57.000 I mean, I remember in California, this is a true story. 0.98

01:34:01.000 I'm not making this up.

01:34:01.000 You can Google this.

01:34:02.000 There was a strip club here in Southern California.

01:34:05.000 And I guess their thing was they had a shower.

01:34:10.000 On the stage.

01:34:11.000 And so the stripper would strip in the shower. 1.00

01:34:13.000 So you can watch her, you know, with the water.

01:34:15.000 And there was a big pole, right?

01:34:17.000 So the shower was up in the air, and you had to climb up the pole to get to the shower, and then you'd do your strippers. 0.88

01:34:23.000 You'd strip.

01:34:24.000 Well, the government made them shut that down.

01:34:26.000 And it was because it was discriminatory against strippers in wheelchairs. 1.00

01:34:31.000 Because there was no way for a stripper in a wheelchair to climb up the pole. 1.00

01:34:34.000 Now, I've never even seen a stripper in a wheelchair. 0.99

01:34:37.000 Not that I spent a lot of time in strip clubs.

01:34:39.000 But this is where we are as a society, right?

01:34:42.000 That we're saying, you know, if a stripper can't go on that pole, then nobody can go on that pole, right?

01:34:48.000 If a stripper that's in a wheelchair can't go on that pole. 1.00

01:34:50.000 Yes, right.

01:34:51.000 Yeah.

01:34:52.000 But all these laws and regulations, everybody is suing everybody because the government creates all these phony rights.

01:34:58.000 I mean, just because I'm hard of hearing doesn't mean the whole world has to accommodate The fact that I'm hard of hearing.

01:35:05.000 I mean, sometimes people will say, look, let's say I happen to have a size 14 shoe and I have a really big foot.

01:35:12.000 Does that mean that every shoe store has to stock a size 14?

01:35:15.000 Just no.

01:35:16.000 I mean, because they know that barely anybody is going to have a size 14. But I go to the big and tall store because I know they're going to have a size 14. So, you know, there are going to be certain businesses that are going to cater to...

01:35:28.000 People with handicaps.

01:35:29.000 You have all these hotels and motels that have to shut down their swimming pools because they can't afford the money to have a lift so that somebody in a wheelchair can go into that swimming pool.

01:35:38.000 Well, why does every single swimming pool in the country have to accommodate somebody in a wheelchair? 0.96

01:35:43.000 Why can't people who have wheelchairs go on the internet and find out which hotels are catering to that particular clientele and just go there?

01:35:51.000 But when you force everybody to do it, miniature golf courses are shutting down because they can't figure out how to be accessible to people in wheelchairs, even if no one in a wheelchair has ever tried to play that course.

01:36:02.000 And then they end up having to shut it down because they can't, you know...

01:36:07.000 You know, the whole thing.

01:36:08.000 I used to go to this beach here in Malibu when I was younger, living here.

01:36:14.000 And in order to get to the beach, you know, you had to walk down like a cliff.

01:36:18.000 It was like a dog beach, and I forget the name of it, but there was no stairs.

01:36:20.000 You had to kind of walk down this cliff.

01:36:23.000 You know, in the very front, there were like three or four handicapped parking spaces that were never filled.

01:36:28.000 They were always empty.

01:36:29.000 And a lot of people would have to park on PCH because the parking lot would get filled.

01:36:32.000 But nobody would ever use the handicapped spots because nobody who was handicapped could possibly get down to that beach. 1.00

01:36:37.000 Yet they had to have those spots there anyway.

01:36:39.000 They had to have those spots, but they didn't have to have some sort of a ramp access to the beach because that's nature.

01:36:44.000 Right.

01:36:44.000 So it was a beach that no one who was handicapped could ever go to, but yet they had to have all these spots there.

01:36:50.000 Like, you could take that to Yosemite and say, like, hey, if you want to climb this mountain, you have to have use of your arms.

01:36:55.000 We're going to have to figure out some sort of handicapped access up the top of this mountain, because otherwise it's unfair. 1.00

01:37:01.000 But this is where all the government...

01:37:02.000 The government thinks they're being charitable.

01:37:04.000 And look, do I feel bad that people have handicaps or people... 0.98

01:37:07.000 Of course, but the solution is not the Americans with Disabilities Act.

01:37:11.000 And, you know, there are a lot of employers now that won't hire people with handicaps because it's now so expensive, whereas they would have done it before.

01:37:18.000 You know, that's the whole thing about, you know, these anti-discrimination laws, like, you know, you can't discriminate based on gender, based on sex, based on, you know, sexual identity and all these different things.

01:37:30.000 Well, because of that, there's actually more discrimination.

01:37:32.000 You know, there are actually employers now who aren't racist at all, but who will go out of their way not to hire minorities because they're afraid of getting sued, right?

01:37:40.000 Oh, if I hire a black guy or if I hire a Hispanic or if I hire a homosexual, what if I fire that person because they're not doing a good job? 0.99

01:37:49.000 They could sue me. 0.99

01:37:51.000 They could say, will you fire me because I'm gay?

01:37:52.000 Well, I've heard this argument about women in tech. 1.00

01:37:55.000 I heard this argument recently because I was reading some article written by Ellen Powell.

01:37:59.000 She was that woman who had that big lawsuit, sexual discrimination lawsuit. 1.00

01:38:04.000 She said some article about women in tech, and someone was saying, well, see this, this is the reason why people don't want to hire women in the first place. 1.00

01:38:13.000 But isn't that sort of a slippery slope?

01:38:14.000 Because if she really was being sexually discriminated against, well, they shouldn't really be able to do that in the first place.

01:38:20.000 If what she's saying is true, that they create this hostile work environment for women, they shouldn't be able to necessarily just never hire women just so they can remain hostile. 0.54

01:38:31.000 Does that make sense?

01:38:32.000 Well, remember, if you have a business, right?

01:38:34.000 Because they always sue the business.

01:38:36.000 So let's say one of my male employees harasses one of my female employees. 0.95

01:38:40.000 They don't sue that one guy.

01:38:42.000 They sue you.

01:38:42.000 They sue the owner.

01:38:44.000 So this is how it works against them.

01:38:46.000 Because it's more profitable.

01:38:47.000 Because the owner has all the money, right?

01:38:49.000 So here's what happens.

01:38:51.000 So I am an owner of a business, and now some woman walks in, and let's say she's particularly attractive, and I start thinking, okay, do I really want to have this potential lawsuit walking around my office? 0.98

01:39:04.000 Do I really want...

01:39:05.000 Because maybe she really does get harassed, but I'm the one that's liable for that harassment, right?

01:39:09.000 And I can have all the policies I want, but, you know, guys are horny.

01:39:13.000 I mean, we know what we're like.

01:39:15.000 And, you know, you dangle...

01:39:16.000 Don't lump me in there, sir.

01:39:17.000 All right, well...

01:39:18.000 How dare you.

01:39:20.000 I'm sorry, continue.

01:39:21.000 But, I mean, employers don't want lawsuits.

01:39:23.000 Right.

01:39:23.000 And so the easier you make it to sue, the less likely you're going to get a job.

01:39:28.000 So if employers are looking at, I want to hire the person who's least likely to sue me.

01:39:32.000 But isn't it conversely, the harder you make it to sue, the more likely people are going to get harassed?

01:39:37.000 No, I mean, if somebody is harassed, then sue the person that harassed you.

01:39:42.000 Don't sue the person who happened to employ him that might have had nothing to do with it.

01:39:46.000 Right.

01:39:46.000 So don't sue you.

01:39:47.000 Sue the individual that causes whatever the issue is.

01:39:50.000 Yeah, I mean, it's got to be a...

01:39:52.000 You can't just say the employer.

01:39:54.000 But again, when you talk about something like discrimination...

01:39:57.000 Like, see, I'm Jewish, right?

01:39:58.000 So maybe it's easier if I just talk about Jews versus something else.

01:40:01.000 So let's say somebody...

01:40:03.000 Doesn't want to hire me because I'm Jewish.

01:40:05.000 I support their decision.

01:40:07.000 They have a right not to like me.

01:40:09.000 No one has to like Jews, and I know not everybody does. 0.99

01:40:13.000 And if somebody is an anti-Semite, they're right to be that. 1.00

01:40:18.000 If they want to fire me because I'm Jewish, they can do that. 1.00

01:40:20.000 They don't want to hire me.

01:40:21.000 If somebody wants to have a restaurant and they want to put a sign that says, no Jews, that's their right. 1.00

01:40:26.000 Now, I think anybody that eats there, I think they've got a problem.

01:40:30.000 Right.

01:40:31.000 I'm not black.

01:40:32.000 If there was a restaurant that had a sign that said no blacks, there's no way I would eat there, just out of principle.

01:40:37.000 Of course.

01:40:38.000 In fact, I think if there's somebody that doesn't like Jews, the last thing they're going to do is put that sign out there, because you know what?

01:40:44.000 They want me to eat there.

01:40:45.000 Even though they don't like me, they want my money.

01:40:47.000 And they also don't want the blowback.

01:40:49.000 And they don't want the bad publicists.

01:40:50.000 Can you imagine?

01:40:51.000 People say, well, if we don't have all these anti-discrimination laws, then restaurants aren't going to serve blacks. 0.53

01:40:58.000 You name me one restaurant. 0.96

01:40:59.000 You find one restaurant in this country with the internet that put out a sign, no blacks allowed. 1.00

01:41:05.000 I mean, that'd be the end of that restaurant.

01:41:06.000 Well, a lot of these laws were sort of established before the internet was the powerful force that it is today, right?

01:41:11.000 Right.

01:41:11.000 But we can now see a lot of the harm that these laws have done.

01:41:15.000 Because you go back before all these anti-discrimination laws.

01:41:21.000 Black teenage unemployment, let's say in the 30s, was lower than white teenage unemployment.

01:41:26.000 Now, do you think we're more racist today than we were back then?

01:41:30.000 No, we're not more racist.

01:41:31.000 We're less racist.

01:41:32.000 But it's all these laws that have backfired, all these anti-discrimination laws.

01:41:37.000 And you have this whole industry.

01:41:39.000 Like recently, you have this big movement because we had the riots in Charlottesville because they want to take down these statues, these Confederate statues, as if those Confederate statues are the reason that we have poverty and unemployment and crime in African-American communities.

01:41:54.000 These statues have nothing to do with that.

01:41:55.000 And taking them down isn't going to change anything.

01:41:57.000 But you've got these people in America that make a living off of poverty and off of race-baiting that want to say, oh, the reason that you're poor, the reason that there's crime, is because of racism.

01:42:08.000 And the racism is because of these statues.

01:42:10.000 So vote for me, give me money, and I will help you.

01:42:13.000 You're a victim and I'm your solution.

01:42:15.000 And they act, well, we'll just get rid of the statue.

01:42:18.000 Because even if they get rid of the statues, nothing's going to change.

01:42:20.000 Now they have to get rid of something else.

01:42:22.000 Don't you think that a statue for a lot of people represents racism?

01:42:26.000 Like if you see a Robert E. Lee statue and then you read about what Robert E. Lee did to his own personal slaves and oversaw some of the lashings and caught slaves that were trying to escape.

01:42:37.000 This is a horrible account that I retweeted recently.

01:42:40.000 Of some slave that was caught while he was trying to escape.

01:42:44.000 Robert E. Lee oversaw them beating him and lashing him.

01:42:48.000 Yeah, I mean, I don't know, I mean, all of the various stories, but I know that Robert E. Lee was a very well-respected guy, even in the North.

01:42:55.000 I mean, he was very...

01:42:56.000 In fact, Lincoln wanted him to run the Union Army.

01:42:59.000 I mean, he turned it down because he couldn't fight... 0.91

01:43:00.000 Because he was a good killer.

01:43:01.000 No.

01:43:02.000 I mean, that's why he was respected, right?

01:43:04.000 Well, he was a good general.

01:43:05.000 He was a war hero in the American Mexican War.

01:43:07.000 But he's also a slave owner.

01:43:08.000 Yeah.

01:43:08.000 Well, so are a lot of people.

01:43:10.000 So was Thomas Jefferson.

01:43:11.000 So was George Washington.

01:43:12.000 I mean, a lot of people own slaves.

01:43:13.000 Different era, though, right?

01:43:14.000 Yes, of course.

01:43:14.000 Look, if Thomas Jefferson were alive today, he would not own slaves, obviously, right?

01:43:19.000 But if you or I were born in the Annabella South, if I was born in Virginia in 1750, would I feel differently about slavery than I do today?

01:43:29.000 There's a good chance that I would.

01:43:31.000 I mean, it was the culture.

01:43:32.000 Slavery had been going on for thousands of years.

01:43:34.000 It's not like we invented it.

01:43:35.000 So as horrific as that is to say, I think you're being very honest.

01:43:38.000 I think you're being very pragmatic about the times.

01:43:41.000 My point is that most people that even see a statue of Robert E. Lee don't even know who Robert E. Lee was.

01:43:47.000 The average American doesn't even know who fought in the Civil War, let alone who won it.

01:43:51.000 I mean, thanks to American schools, I don't think those statues...

01:43:55.000 Those statues have been there for...

01:43:57.000 Look, Martin Luther King never cared about those statues.

01:43:59.000 He didn't march down and say, we've got to get rid of these statues.

01:44:02.000 Well, do you know when a lot of those statues were actually put up?

01:44:04.000 A lot of them were put up during the Civil Rights era.

01:44:06.000 They were put up because people were fighting against all the racism.

01:44:10.000 Well, a lot of them...

01:44:11.000 And so it was a reaction.

01:44:14.000 Well, a lot of them were put up in 1900, 1910, 1920. There's actually a spike in these Civil War monuments going up, and they're actually fairly cheaply made bronze statues that were cheaper to produce that were made during the Civil Rights era in direct protest to the Civil Rights era.

01:44:34.000 So they put up these statues of guys like Robert E. Lee who represented slavery.

01:44:38.000 The people who were leading the anti-civil rights movement were all the Democrats, right?

01:44:43.000 A long time ago, right?

01:44:45.000 Well, this is when they passed it.

01:44:47.000 When they passed the Civil Rights Act in 1964, it was only because of Republicans that it passed.

01:44:52.000 If the Republicans had voted for it in the same proportion of Democrats, it would have been defeated.

01:44:56.000 But the part of the Civil Rights Act that I was against, and obviously I was a little kid then, so I was born in 1963, so I'm just looking back at it, right?

01:45:05.000 That all of the anti-discrimination laws that had to do with government and the state governments, because you had a lot of institutionalized racism down south by Democrats, right?

01:45:16.000 And all that was bad, and the fact that we eradicated was good.

01:45:19.000 The part that was bad is the part that went into the private realm and said, if you are a private person, you can't discriminate.

01:45:28.000 Because now all of a sudden the government is the thought police.

01:45:30.000 Now all of a sudden every decision that everybody makes is being second-guessed.

01:45:35.000 You've opened up everybody to all sorts of lawsuits, and you've gotten this blowback where businesses are afraid to hire people, not because they're racist or bigots, but because they fear a lawsuit.

01:45:46.000 And so now you've increased the cost of employing people.

01:45:50.000 People that are in these specialized groups.

01:45:52.000 So I think that that was a bad thing.

01:45:54.000 And also, I think, legally, I don't think the government constitutionally has the right to tell me...

01:45:59.000 I mean, everybody knows, like, if somebody tried to tell me in my private life, you know, you need to be an equal opportunity dater, right?

01:46:08.000 All the women that you... 1.00

01:46:09.000 You know, you can't just date white women or... 1.00

01:46:11.000 I've seen this argument.

01:46:13.000 I mean, but...

01:46:13.000 And also, you know...

01:46:15.000 Even as an employee, right, if I, let's say I'm Jewish, if I say, hey, I want to work for another Jew, I just like working for Jews, and I go and I apply for jobs, and I say, you know what, I don't want to work for you, you're not Jewish, oh, you know, so I can discriminate as a worker among, 0.99

01:46:31.000 and I can quit, I can go to my employer and say, you know what, I'm tired of working for a Jew, I quit. 1.00

01:46:38.000 Right?

01:46:38.000 That's legal.

01:46:39.000 You can't sue me for discriminating against you and going to work for my competitor.

01:46:42.000 So, look, employers are, you don't lose your rights because you create a business.

01:46:47.000 You don't lose your rights.

01:46:48.000 I'm sorry, let me interrupt you here, but don't you think there's a big difference between someone who makes a personal decision of where they want to work versus someone who has power over you?

01:46:57.000 There's a big difference between someone who chooses, like, I don't like working for this guy because I only like working for white people.

01:47:02.000 And you can decide to do that because it's your own personal choice to where to go.

01:47:06.000 You're not holding any power over someone.

01:47:08.000 These laws are created.

01:47:10.000 They're anti-discrimination laws because you're discriminating against other people and you can keep other people from making a living.

01:47:16.000 Well, employment is all about discrimination, right?

01:47:18.000 I'm trying to find the best person for the job.

01:47:20.000 I can discriminate based on all sorts of factors, right?

01:47:23.000 That's one way to look at it.

01:47:25.000 Discrimination, but you're being discerning more than anything, right?

01:47:28.000 Right.

01:47:28.000 Well, you're saying, look, you're going to discriminate based on competence, based on their background, based on their...

01:47:34.000 But isn't that discrimination?

01:47:34.000 I mean, that's a weird distortion of the word, though.

01:47:37.000 No, it's still...

01:47:38.000 Discriminating just means you're kind of picky, right?

01:47:41.000 Right.

01:47:41.000 You're talking about discriminating based on a factor like race or sexist or homophobic.

01:47:50.000 Discriminating and racism are different things.

01:47:53.000 You can discriminate based on race and not be a racist.

01:47:58.000 Let's say somebody decides Okay, I can hire two candidates.

01:48:02.000 One is white and one is black.

01:48:04.000 And if they say, well, if I hire the white candidate, I'm less likely to get sued if I have to terminate him because he's not doing a good job because he can't claim. 0.72

01:48:13.000 So if I make that decision based on race, it's not because I'm a racist.

01:48:16.000 I'm trying to practically look at the numbers.

01:48:19.000 But a lot of people would disagree.

01:48:20.000 They would say that is a racist decision.

01:48:22.000 You're assuming that black people would be more likely to sue you?

01:48:25.000 Is that statistically true? 0.95

01:48:26.000 No, because if I fire somebody who's white, they can't say, you fired me because I'm white.

01:48:33.000 You can't do that.

01:48:35.000 So, obviously, there are plenty of lawsuits for wrongful termination.

01:48:39.000 I've had them myself, where somebody says, you sued me because I'm black.

01:48:44.000 Nobody is going to say, you fired me.

01:48:46.000 So it is a statistic that somebody can consider.

01:48:51.000 But is it an actual statistic?

01:48:54.000 Are more black people or black people rather more likely to sue for wrong determination?

01:49:01.000 A black person is more likely to sue for a racially based determination than somebody who's white. 0.85

01:49:08.000 You know, a woman is more likely to sue... 1.00

01:49:11.000 Because she was discriminated based on her sex. 0.97

01:49:13.000 A man is not likely to say, you fired me because I'm a man.

01:49:16.000 But you're going to get someone saying, you fired me because I'm a woman. 0.99

01:49:19.000 Because they're a member of a protected class.

01:49:21.000 But if somebody makes a decision, that doesn't mean that you're anti-women if you're trying to make a rational decision.

01:49:29.000 The racism is just believing that one race is inferior, just not liking somebody because they're a member of a particular...

01:49:36.000 That's totally different than trying to...

01:49:37.000 I think that racial discrimination should be legal if you're thinking about the future of your business and just hedging your bets. 1.00

01:49:43.000 Well, you know what?

01:49:43.000 No, I don't care.

01:49:44.000 I think it should be legal no matter what.

01:49:45.000 I don't want to...

01:49:46.000 Look, I think people have a right... 1.00

01:49:48.000 To be assholes. 1.00

01:49:50.000 Yes. 1.00

01:49:50.000 And the thing is, though, if you're a businessman and you're making your hiring decisions based on the color of people's skin or their gender, and my competitors are making decisions based on competence, you're not going to survive. 1.00

01:50:04.000 I mean, if you are going to turn down...

01:50:06.000 A better quality female worker and you're going to settle for somebody who can't do the job as well because you want to hire a man, you're not going to be a successful businessman. 1.00

01:50:15.000 So I have my faith in the free market that racism, there is a cost, right?

01:50:19.000 When you're a racist...

01:50:21.000 And you want to be a racist in business?

01:50:23.000 That costs you a lot of money.

01:50:25.000 But what happens is the government tries to take the cost away from racism.

01:50:30.000 They try to substitute laws and regulations.

01:50:34.000 I'd rather have the market punish the racist. 0.98

01:50:37.000 Let the market punish somebody who is hiring people That are not competent for the job, but he's hiring them for some ridiculous reason. 0.94

01:50:45.000 Well, conversely, what did you think about the Google memo?

01:50:49.000 Because one of the things about that memo was the gentleman that was fired, what is his name?

01:50:53.000 James Damore?

01:50:55.000 Yeah.

01:50:55.000 That's his name?

01:50:56.000 He was saying that Google was hiring people based on whether or not there are minorities and women, regardless of their competence.

01:51:04.000 They were discriminating against straight white males to pursue people that would give them the appearance of diversity.

01:51:13.000 Well, they're doing that.

01:51:14.000 I mean, they're trying to be more diverse.

01:51:17.000 And mainly the diversity that they're going for is they want to hire more women.

01:51:21.000 Well, also more minorities.

01:51:23.000 Well, that too.

01:51:24.000 But I think his argument or his paper was more focused on the gender.

01:51:27.000 But what he was trying to do is point out the fact that fewer women are just in programming. 1.00

01:51:33.000 I mean, they're not...

01:51:33.000 They're not interested in that pursuit as much as men are.

01:51:36.000 And so, you know, when you're hiring, right, when Google is hiring and they're trying to get the very best, you know, there's a much bigger pool of male applicants for those jobs.

01:51:45.000 I mean, it's much more competitive.

01:51:46.000 And so he's making the point that, look, you're just not going to get a lot of women In these jobs, and if you're going to just try to have more diversity, you're just going to sacrifice the quality.

01:51:57.000 And, you know, I'm sure that he's right, but the interesting thing is he gets fired for expressing that opinion.

01:52:01.000 And what's ironic is he's suing.

01:52:03.000 Well, now, look, I mean, look, personally, see, personally, I think that Google should be able to, it's their company.

01:52:08.000 I think that if they want to fire somebody, they should be able to do that.

01:52:12.000 Now, if he had a contract, see, I don't know what kind of employment contract, if he's an at-will employee, you know, I think they should be able to terminate him for whatever reason, just like I think he should be able to quit.

01:52:21.000 Well, they were saying he was reinforcing negative gender stereotypes.

01:52:24.000 That was the main reason they publicly stated that he was being fired for.

01:52:28.000 I mean, look, I think it shows you how low that we've fallen as a society, that you're allowed to express your opinion as long as it's the politically correct opinion.

01:52:38.000 And Google is afraid of the blowback.

01:52:41.000 And I can understand, look, if they think it's going to hurt their profits, if they think the way to make money in America today is to bow down on the altar of political correctness and just pretend that things that you know are true are not true.

01:52:52.000 But, you know, my principles are consistent.

01:52:55.000 But I do think that they probably violated California labor law in the way they fired him.

01:53:00.000 I don't like California labor law.

01:53:02.000 I mean, I'm an employer here in California, and I don't like it, and I would probably employ a lot more people here if they didn't have the labor law that they do.

01:53:10.000 But I'm consistent in my views.

01:53:12.000 But I think it's terrible that they had to fire him, because if he had expressed the exact opposite position, it wouldn't have been a problem.

01:53:20.000 It's just because he is basically saying the truth.

01:53:24.000 I mean, look, Why is it that you have to pretend that men and women are exactly the same in all aspects of life, that there's no difference in our evolutionary biology, that men and women didn't necessarily evolve in different ways based on the roles that they played,

01:53:41.000 you know, thousands of years ago or tens of thousands of years ago, and that there's, you know, there's something about maleness. 0.96

01:53:47.000 And again, it's not like, obviously...

01:53:50.000 There are exceptions to the rule, right?

01:53:51.000 But in general, there's going to be certain ways that the average man is going to be different than the average woman.

01:53:59.000 And maybe men, just for whatever reason, are going into programming, computer science, in greater numbers than women.

01:54:06.000 I mean, that's just going to happen.

01:54:07.000 That's just nature.

01:54:08.000 You can't try to pretend that doesn't exist.

01:54:10.000 Well, this has been laid out by evolutionary psychology.

01:54:13.000 This is something that's been studied, because looking at human beings and the choices they make based on their gender, based on their environment, based on...

01:54:21.000 There's a host of different factors.

01:54:24.000 So to deny that does seem...

01:54:26.000 And again, no one's talking about, obviously there are going to be examples that don't fit that.

01:54:32.000 Of course.

01:54:33.000 But there's always outliers.

01:54:35.000 But when you're looking at numbers in a job, you're looking at the totality. 0.96

01:54:40.000 And so if there's only 10% women, to say, well, we need to make it 50-50 because half the world is women is ridiculous. 1.00

01:54:49.000 That's like if the UFC said, listen, we need more women fighters, so we're going to fire some of the men that are way better fighters, and we're going to hire more women fighters to make a more diverse lineup, even though there's way less women interested in fighting. 0.99

01:55:02.000 I'm sure.

01:55:03.000 Because, obviously, I mean, I'm amazed that there are even any women, really, that want to be fighters.

01:55:08.000 But, I mean, obviously there's going to be some.

01:55:09.000 But the vast majority of women that I know, they might like watching other men fight, but the last thing they want to do is step in the ring. 1.00

01:55:16.000 The vast majority.

01:55:16.000 Because that's mostly a masculine thing.

01:55:19.000 That type of violence, you know, most women, that doesn't mean there's no women that want to do that. 1.00

01:55:24.000 Of course, there's going to be women. 1.00

01:55:25.000 It's a good example, because they're outliers.

01:55:28.000 And when you're just looking at it without any discrimination, you're just looking at this pursuit.

01:55:32.000 And trying to figure out which genders are more likely to enter this pursuit, whether it's being a lumberjack or a miner or whatever. 1.00

01:55:39.000 You could say all the factors you want.

01:55:41.000 Well, maybe they're worried about discrimination of other men on the job.

01:55:44.000 Maybe they're worried about being sexually harassed.

01:55:45.000 Maybe they're worried about this.

01:55:46.000 Whatever those factors are, there's a lot more women that are interested in other pursuits. 1.00

01:55:52.000 Of course.

01:55:52.000 Nursing and...

01:55:53.000 Yes, and then when the government comes in and just says, oh, well, the numbers are this, and now we have to fix this because this must be the result of discrimination.

01:56:02.000 Yeah.

01:56:02.000 When it's not.

01:56:03.000 It's just the natural result of people acting freely.

01:56:07.000 But it's also people's response to that.

01:56:09.000 They almost can't have a measured objective response.

01:56:12.000 Like the woman who's the CEO of YouTube said that she was very hurt by that memo and that this guy was a misogynist that created that memo. 0.99

01:56:19.000 Meanwhile, she's the fucking CEO of YouTube. 1.00

01:56:22.000 Like, she is! 1.00

01:56:24.000 Like an example of a woman that can succeed and does succeed because she does have the personality to be that kind of a person. 0.97

01:56:29.000 And also, you know, I don't like this idea when you say, you know, oh, I was offended, right?

01:56:33.000 It's like, hey, you know, you don't have a right not to be offended.

01:56:36.000 I mean, look, you know, you have to be a little sensitive.

01:56:38.000 You have to have a thicker skin.

01:56:40.000 You know, people are going to say things that you offend, that are offensive to you.

01:56:43.000 That doesn't mean they don't have a right to speak their mind.

01:56:46.000 You know, people, I mean, that's, you know, a lot of people now, all of a sudden, freedom of speech is taking a back door to my sensibilities.

01:56:52.000 Right.

01:56:53.000 I don't want to be offended.

01:56:55.000 Well, it's a cheap way out.

01:56:56.000 It's a cheap way out to just say I'm offended.

01:56:58.000 And then people have to sort of acquiesce and they have to figure out some sort of a way to calm down your offended personality or whatever it is about what you've done.

01:57:12.000 Yeah.

01:57:12.000 And, you know, no one, as I said earlier, I mean, you don't have a right not to be offended.

01:57:16.000 You know, and there's going to be a lot of offensive people in the world.

01:57:19.000 And the reason that you defend people that are being offensive is not because you're defending what they're saying.

01:57:25.000 You're defending your right to be offensive to other people.

01:57:28.000 Because, look, there are a lot of people.

01:57:30.000 Let's say we talked about the socialists.

01:57:31.000 There could be a lot of socialists that are offended by the fact that I believe in the free market.

01:57:35.000 Or people could be offended that I think people should have a right to be able to discriminate.

01:57:39.000 Right?

01:57:40.000 So, but...

01:57:41.000 So now, if I'm not going to protect somebody else's right to free speech, then they can take away mine.

01:57:46.000 Because I don't want the government determining, you know, what's offensive and what's not.

01:57:50.000 I don't want the government saying, this speech is protected and this speech isn't.

01:57:54.000 Because the minute you go down that slippery slope, you know, the next thing you know, you know, all the libertarians are now fascists and none of us can speak, right?

01:58:00.000 And the government gets more and more power and they try to shut people up that want to criticize them.

01:58:04.000 That's truly shrinking government and truly letting the marketplace of ideas decide what people do and don't do and which way they gravitate.

01:58:14.000 Yeah, and as I said, I think the free market and competition will punish racists.

01:58:19.000 I think their businesses will fail.

01:58:20.000 I don't think they're going to succeed as well as people who are broader-minded, who are looking beyond sex and looking beyond sex.

01:58:28.000 I think?

01:58:50.000 Women are paid like 70 whatever cents for every man, which obviously that's not true, because if that was true, I would only hire women and pay them 77 cents on a dollar. 0.99

01:59:00.000 I mean, if you could actually hire women cheaper than men, I mean, why would I ever hire a man? 0.54

01:59:06.000 I would only hire women. 1.00

01:59:07.000 I've had this conversation many times with people that really believe that.

01:59:10.000 They really believe in the gender pay gap.

01:59:13.000 There is no gender pay gap.

01:59:14.000 But isn't that an amazing statistic?

01:59:16.000 That even the president, like when Obama was president, he was saying that in a speech knowing it was disingenuous.

01:59:23.000 He had to know.

01:59:25.000 It appeals to women to get their votes, but if you basically correct for all the... 1.00

01:59:33.000 Job choices.

01:59:34.000 Right.

01:59:35.000 So if you take a woman who's, let's say, 40 years old, never been married, man 40 years old, never married, basically the same educational background, you know, and you study, you'll find that they pretty much make the same, right?

01:59:47.000 It's that when you look at the choices that the typical woman makes during her career, and, you know, even if it's the same occupation, let's say they're both lawyers and they both went to the same law school, even if they both get married, the chances are the woman She took her law career and it became secondary to her children. 0.98

02:00:09.000 She worked fewer hours.

02:00:11.000 She didn't travel as much.

02:00:13.000 She got herself off that track and went on more of a mommy track. 1.00

02:00:17.000 Do all women do that? 1.00

02:00:18.000 No, but more women are likely, and they prefer that. 1.00

02:00:22.000 They don't work as much.

02:00:24.000 They don't volunteer to travel as much.

02:00:28.000 It's because of the choices that they make along the way that they end up earning less money than their male counterpart. 0.95

02:00:33.000 Not because somebody is just discriminating against them, because there is a competitive market.

02:00:38.000 I mean, if you are a woman that is working just as hard as a man and you're sacrificing everything for your career, you're going to earn the same as the guy. 0.88

02:00:48.000 I mean, because it's a competitive market, especially for those higher skills.

02:00:52.000 I mean, you just can't underpay people in the marketplace because somebody else will outbid you.

02:00:56.000 But it's such a convenient talking point.

02:00:59.000 It is.

02:00:59.000 It's the lie.

02:01:00.000 It's the left.

02:01:01.000 It's how you get votes.

02:01:02.000 Like, hey, you're getting paid less because you're being victimized, you're being discriminated against, so vote for me and I'll fix that.

02:01:09.000 I will force your employer to pay you money.

02:01:12.000 Obviously, Willie Sutton, one of his famous quotes was, you know, why do you rob banks?

02:01:17.000 Well, because that's where the money is, right?

02:01:20.000 The votes are with employees.

02:01:21.000 Much more people have jobs than create jobs.

02:01:25.000 So if you're trying to get the votes of the employee, that's better than getting votes of employers.

02:01:30.000 So a lot of people get votes by promising to force their boss to give them something.

02:01:34.000 You're going to get more vacations.

02:01:36.000 You're going to get more sick days.

02:01:38.000 You're going to get time and a half.

02:01:39.000 He's going to have to do this.

02:01:41.000 Well, all that...

02:01:42.000 You know, the employer doesn't give you anything.

02:01:44.000 So if he's going to give you more vacation, it's because he's going to pay you less in wages.

02:01:48.000 I mean, it's all a trade-off.

02:01:49.000 I mean, when the government mandates certain benefits, all they're doing is taking your choice away to negotiate how you want to be compensated.

02:01:56.000 Because ultimately, the employer is not going to pay you more than you're worth.

02:01:59.000 And if you say, well, you got to give this person, you know, these vacations, or you got, okay, well, I got to pay him less money so I can give him the vacations.

02:02:06.000 It's all one big compensation package.

02:02:08.000 It seems like it's a political thing again.

02:02:10.000 It's a thing that people do in order to get you to lean towards them more and to have people feel that this person is looking out for my needs, this person is looking out for my point of view, my perspective, and he understands the plight that women go through.

02:02:25.000 Whereas Peter Schiff, he's so hardcore, you know, he's capitalistic that he doesn't even care about what women go through.

02:02:32.000 Or discrimination.

02:02:33.000 Yeah, and it's like the reality is if I didn't care about women, I wouldn't care about these laws. 0.99

02:02:37.000 I understand how these laws backfire and hurt women. 0.96

02:02:40.000 I understand how all these laws that are meant to do good actually do harm.

02:02:44.000 And that's one of the reasons that when you find a lot of liberals, they actually think conservatives or libertarians are bad people, right?

02:02:51.000 Because they say, hey, you're against this law.

02:02:54.000 You must be a bad person because this law is going to help people.

02:02:56.000 Well, in their mind, you are a bad person.

02:02:58.000 Right, because otherwise I would support the law.

02:03:00.000 See, when I think about most liberals, I don't think they're bad.

02:03:03.000 I just think they're misunderstood.

02:03:05.000 They're misinformed. 1.00

02:03:06.000 They're ignorant. 1.00

02:03:07.000 They don't understand. 1.00

02:03:08.000 Yes, they're good people, but they're going about it in a bad way.

02:03:11.000 They don't understand that the road to hell is paved with good intentions.

02:03:14.000 I don't want to go to hell.

02:03:15.000 I don't care how many good intentions you have.

02:03:17.000 If I know that that road is going to hell, I'm going to try my best to build a different road.

02:03:22.000 And I believe that free market capitalism is the best way to raise the standard of living of everybody, whether you're a woman, whether you're black, whether you're homosexual.

02:03:32.000 It's the individual acting freely that's going to be your best hope.

02:03:36.000 If you're going to empower government, and this is one of the things that I can never figure out, because people are, again, they're very suspicious of I mean,

02:03:53.000 why aren't they just as corrupt?

02:03:55.000 Just because somebody uses politics to get rich doesn't mean they're on some moral high ground.

02:04:00.000 Well, even worse, this idea that if you give more of your taxes, that the government is somehow or another going to be competent with how they distribute those taxes.

02:04:09.000 And that there's some going to be egalitarian.

02:04:11.000 They're going to use the taxes for good.

02:04:14.000 That's a very disgusting sort of an idea.

02:04:17.000 Doesn't make any sense at all.

02:04:19.000 Or the idea that government is going to make better decisions for you or your family than you are.

02:04:23.000 I mean, the government doesn't even know you.

02:04:25.000 They don't know your kids.

02:04:26.000 Yet, they're going to decide what they eat or where they go to school.

02:04:30.000 No, the people that care about your kids are you.

02:04:33.000 You care.

02:04:34.000 I mean, look at these lousy schools that unfortunately...

02:04:37.000 That's why so many people vote for Bernie Sanders, is because they went to these government schools and they got a lousy education.

02:04:42.000 Their teacher is a socialist.

02:04:44.000 There's a whole socialist system.

02:04:46.000 But the parents are trapped because their taxes are already paying for these lousy schools. 0.99

02:04:51.000 They're monopolies.

02:04:52.000 And so...

02:04:55.000 The liberals act as if, well, if we didn't have government schools, then parents wouldn't educate their kids.

02:04:59.000 Of course they would.

02:05:00.000 You don't think they would send their kids to private schools, and they'd be a lot less expensive.

02:05:03.000 And you'd have all kinds of entrepreneurs who are trying to earn money educating poor kids, just like people earn a lot of money clothing poor kids and feeding poor kids and housing them.

02:05:13.000 I mean, if there's money to be made, an entrepreneur is going to come in and satisfy that desire.

02:05:17.000 So you're against public education, or do you think it shouldn't be subsidized the way it is, especially colleges?

02:05:24.000 Well, look, I think that government education is much too expensive and not good enough.

02:05:31.000 I mean, people think that, oh, we need the government to educate.

02:05:34.000 And I think, you know, education is very important.

02:05:36.000 And I don't think it's so important, we just shouldn't leave it up to government.

02:05:39.000 I think that the free market, just like the free market does a better job of creating computers, right, I think it'll do a better job of creating education.

02:05:47.000 When people are struggling, they really like the idea that at least education is free for their children.

02:05:53.000 It's not free.

02:05:54.000 Nothing that the government provides is free.

02:05:56.000 It costs money.

02:05:57.000 Where's that money coming from?

02:05:58.000 Your taxes.

02:05:59.000 The government has to take money.

02:06:00.000 And the stuff that you get for free from the government is very expensive.

02:06:04.000 The stuff that you get from the free market that you pay for is much less expensive and it's a much higher quality.

02:06:09.000 Now, you know, the problem with colleges, right?

02:06:11.000 We have a lot of colleges that are not run necessarily by government, but why are they so expensive?

02:06:16.000 Because the government subsidizes university tuition by either guaranteeing loans or directly providing loans to students.

02:06:24.000 And this drives up the price of college.

02:06:26.000 The reason that college is so expensive is because of government subsidizing the cost.

02:06:30.000 So there is no free market to control the cost.

02:06:33.000 You just have the government to subsidize the ever-escalating costs and providing all this money.

02:06:38.000 So now, you know, people go to college and they graduate with a mortgage without a house.

02:06:43.000 That's the government that did that.

02:06:44.000 But you have these liberals.

02:06:46.000 They think the government is helping them.

02:06:48.000 Like the liberals say, vote for me and I'll make sure you get a loan so you can go to college. 0.89

02:06:52.000 Well, the only reason they need a loan is because the college is so expensive.

02:06:55.000 And why is the college so expensive?

02:06:57.000 Because of the loans.

02:06:59.000 You know, I mean, my father went to college and his parents didn't have any money because they were poor, lower middle class.

02:07:07.000 But so he worked his way through college by having a summer job.

02:07:11.000 And that summer job was enough to pay for everything, room, board, tuition.

02:07:14.000 And all of his friends worked their way through college.

02:07:17.000 Why can't Americans work their way through college today?

02:07:20.000 Because the government made college so expensive because of all the loans.

02:07:24.000 But what happened is the government said, hey, you don't have to have a job while you're in college.

02:07:28.000 We'll just guarantee a loan, you know, and you'll just be able to borrow the money.

02:07:32.000 But, you know, graduating with a bunch of debt doesn't do the kids any favors.

02:07:36.000 They would have been better off, you know, having a summer job instead of, like, you know, just partying all summer or bumming their summers around Europe while they're borrowing money.

02:07:45.000 Well, there's two giant issues with that.

02:07:47.000 One giant issue with the debt is you're getting out of college and you're going to take a job that's probably not going to pay you a whole lot in the first place, and you're saddled down with who knows how many thousands, maybe even hundreds of thousands of dollars worth of debt.

02:08:00.000 And then on top of that, you can't even go bankrupt and dissolve that debt.

02:08:04.000 It's the one debt in this country that you're stuck with forever.

02:08:07.000 Look, it is terrible.

02:08:08.000 Kids take on this debt when they're 17, 18, 19. And they're not making good decisions.

02:08:13.000 No, they're terrible decisions.

02:08:14.000 They're horrible decisions.

02:08:15.000 Look, they don't understand.

02:08:16.000 They don't know anything about money.

02:08:17.000 They're too young.

02:08:18.000 Or consequences.

02:08:19.000 Yeah, and they've been fed a lie that, well, if you don't go to college, your life is ruined.

02:08:23.000 I do some of my videos on my YouTube channel, and one of the videos that I did, and I wish it got more views, and maybe it will, but I can talk about it on your show.

02:08:31.000 What does the YouTube channel tell people?

02:08:33.000 Peter Schiff.

02:08:34.000 Just your name.

02:08:35.000 Yeah, my name.

02:08:36.000 It's the Schiff Report.

02:08:37.000 But one of the videos I did, And I call, is a college degree worth the cost?

02:08:43.000 You decide.

02:08:44.000 And I did this like four years ago down in New Orleans.

02:08:47.000 And I went down the street and I was asking people who were working.

02:08:52.000 I didn't talk to people who were just there to have drinks.

02:08:54.000 I worked to the people who were working on Bourbon Street, right?

02:08:56.000 They were strippers. 1.00

02:08:58.000 They were bouncers.

02:08:59.000 They were pedicab drivers.

02:09:00.000 They were bartenders. 0.77

02:09:02.000 They were taking out the trash cans.

02:09:03.000 And I didn't discriminate.

02:09:05.000 I asked everybody I saw.

02:09:06.000 And almost everybody I talked to is on this video.

02:09:09.000 I mean, very few people didn't make it.

02:09:11.000 And I basically said, did you go to college?

02:09:13.000 When did you graduate?

02:09:16.000 What was your major?

02:09:17.000 And how much do you owe?

02:09:19.000 And every single person that I talked to that was doing a menial job, and some of them had two or three degrees.

02:09:26.000 Master's degrees.

02:09:28.000 And the point was, and some people thought I was trying to make fun of the people, and I wasn't trying to make fun of anybody.

02:09:34.000 I was trying to prove a point that this was a complete waste of time and money, that these individuals could have done these jobs without college.

02:09:41.000 They could have done it right out of high school without all this debt.

02:09:44.000 And that just having these degrees didn't mean anything.

02:09:47.000 Who benefited from these degrees?

02:09:49.000 The universities that sold these overpriced degrees.

02:09:52.000 They benefited.

02:09:54.000 That's who benefits from all these college loans, not these kids who borrow $50,000 and now are emptying trash cans because they got some liberal arts degree that's meaningless.

02:10:03.000 It's the universities, the college, that got to overcharge for a degree that the kid would have been better off without.

02:10:10.000 And then there's also the opportunity cost.

02:10:12.000 You know, you spend five or six years now in these overcrowded colleges.

02:10:15.000 You know, it used to be four years, but now it's so hard to get the classes that sometimes it takes you five or six years to even graduate, and you graduate with nothing.

02:10:22.000 You've got a worthless degree.

02:10:24.000 You've got politicians that are saying everybody needs to have a college degree.

02:10:27.000 Okay, well, if everybody has one, what's it worth?

02:10:29.000 Nothing.

02:10:30.000 You know, at one point, maybe one in ten people had a college degree, and then it actually meant something, because you had something that not everybody else has.

02:10:37.000 But, you know, if everybody has a degree, then you've actually destroyed the value of the degree.

02:10:41.000 And that's what the government has done.

02:10:42.000 They've made a degree extremely expensive to get, but there's very little value.

02:10:46.000 And you have all these politicians, or not politicians, maybe colleges.

02:10:50.000 They'll try to say, look at how much more money people make who have college degrees versus people who don't have college degrees.

02:10:56.000 And they assume that the reason for that is the college degree.

02:10:59.000 Again, it's false statistics, right?

02:11:02.000 Because think about the typical person who chooses to go to college.

02:11:05.000 They're smarter, they're more ambitious, they're harder working.

02:11:08.000 That's why they're making more money, not because they have a degree, right?

02:11:13.000 So if you probably looked at two individuals from the same circumstances, maybe same high school, same demographic, they got the same GPA, they got the same, you know, SAT scores, One went to college and one didn't, and then you followed them,

02:11:29.000 you might find that the guy that had the gumption to skip college is actually making more money than the guy who went to college.

02:11:35.000 Maybe he started a business, maybe he gained some real world experience, and then he wasn't encumbered by a bunch of debt, right?

02:11:41.000 So it's not the college degree at this point.

02:11:43.000 Now, yeah, if you wanna be a doctor, sure, you gotta go to college, or you gotta go to med school, but there are a lot of things that you don't need a college degree to do, and a lot of people who are doing them have college degrees.

02:11:55.000 And their success is not a function of that college degree.

02:11:58.000 It's a function of the hard work that they did after they left college.

02:12:02.000 Well, education is very important, but you can get a tremendous amount of education today, and this is not, you know, the 1800s.

02:12:09.000 You can get it online.

02:12:10.000 Oh, yeah.

02:12:10.000 You can get it through books.

02:12:11.000 You can get it through audio courses.

02:12:13.000 There's just so much available.

02:12:14.000 I mean, I'm not anti-education.

02:12:15.000 I think people should educate themselves.

02:12:17.000 You're anti-debt, and you're anti the college debt that people are saddled down on.

02:12:19.000 Well, I'm anti the government saying the only way to get educated is to have a school do it.

02:12:24.000 I mean, you know, there are a lot of Americans.

02:12:25.000 We talked about, you know, Robert E. Lee, but you go to the Founding Fathers.

02:12:28.000 A lot of these guys were all self-educated men.

02:12:31.000 They didn't necessarily go to college.

02:12:32.000 Some of them did, but a lot of them were self-educated.

02:12:34.000 And believe me, back then, educating yourself was pretty hard.

02:12:38.000 I mean, the only books you had were the ones that you could check out of a library.

02:12:41.000 I mean, now anybody, any kid in a poor inner city has everything at his fingertips.

02:12:46.000 You could go on the Internet and you can teach yourself.

02:12:49.000 And in fact...

02:12:50.000 Professors can sell courses online.

02:12:52.000 You don't have to, you know, go to a college.

02:12:56.000 Some professor can have a tutorial site and he can charge like, you know, 10 bucks a month and he could give lectures and he could teach.

02:13:02.000 You can learn all sorts of stuff without enriching some government bureaucracy, some college or university, and you don't have to borrow tens of thousands or hundreds of thousands of dollars to learn what you can learn for practically nothing.

02:13:15.000 On the internet.

02:13:16.000 Yeah.

02:13:17.000 Speaking of the internet, I know we've spent a lot of time here, but I can't let you leave unless I ask you this one last thing.

02:13:23.000 What are your thoughts on cryptocurrencies, specifically Bitcoin and all these different...

02:13:27.000 Yeah, and I know, let's talk about that and let's, you know, hopefully we have enough time to really hash this subject out.

02:13:33.000 Because I know, you know, I was on your show a few years ago and we talked about cryptocurrencies.

02:13:37.000 And, you know, I was very skeptical about them then and I'm as skeptical about them now.

02:13:41.000 But, of course, obviously, had you just bought them, When I was here a few years ago...

02:13:46.000 They would skyrocket, right?

02:13:47.000 Yeah, I mean, obviously, if you bought them back then, you could turn around and you can sell them today for a lot more money, right?

02:13:54.000 But does that mean they're going to work?

02:13:56.000 Does that mean they're going to fulfill the promise that everybody believes, right?

02:14:01.000 And what is it that people believe about Bitcoin?

02:14:04.000 And they believe that it's going to be money, that it's going to either replace or exist alongside of the dollar, the euro, the yen, that people are going to use it as a medium of exchange, that it's going to be a store of value, and There,

02:14:21.000 it's just not going to work.

02:14:22.000 It is not going to happen.

02:14:23.000 I know there are a lot of people that believe this, and they almost believe it like a cult, right?

02:14:26.000 They believe it like a religion. 0.86

02:14:28.000 And the fact that I don't believe it, I'm just, you know, I'm either a fool, I'm stuck in my ways, I just don't get it, you know. 0.76

02:14:35.000 And, you know, look, you know, I've seen it all before when it came to the dot-coms, when it came to the real estate.

02:14:42.000 And it's not that, like, I did a podcast, again, on my own, and I was trying to compare...

02:14:47.000 I was looking at the internet stocks, and I used Pets.com as an example, and I looked at Bitcoin.

02:14:54.000 And then somebody did a video critical of me trying to explain why Bitcoin is not like Pets.com.

02:15:00.000 And I never tried to equate the two.

02:15:03.000 What I was talking about was the idea.

02:15:05.000 When Pets.com was started and people were making money because the stock went up, right?

02:15:10.000 They thought that the business would succeed as a business, that it would make a profit, right?

02:15:15.000 Now, it never did.

02:15:16.000 It went bankrupt.

02:15:17.000 But people bought it early on and it went up.

02:15:21.000 Now, the fact that it went up didn't mean that they were right in their ultimate bet.

02:15:25.000 It just meant that other people made the same mistake and paid an even higher price. 0.96

02:15:29.000 And so you can be wrong but still profit from being wrong as long as there are other fools who are also wrong. 0.63

02:15:36.000 And that's where I see the similarity in the cryptocurrencies or Bitcoin. 0.93

02:15:40.000 If somebody bought Bitcoin a year ago, two years ago, five years ago, and it's now a lot higher, it's only higher because other people are more foolish than they were, and more people now believe something that's not going to happen.

02:15:53.000 Why do you think it's not going to happen?

02:15:54.000 What do you think of the restrictions?

02:15:56.000 What's holding it back?

02:15:58.000 All right, so people have to understand what money is and what can succeed as money, right?

02:16:06.000 Yes, dollars and euros and yen, intrinsically there's no value there.

02:16:10.000 It's just a piece of paper and they're created out of thin air.

02:16:13.000 But that wasn't always the case.

02:16:15.000 I mean, the dollar used to be backed by gold.

02:16:17.000 And what gave the dollar value was the gold backing.

02:16:19.000 That's why it had value, because you can go and get gold for it.

02:16:22.000 You can convert it to gold.

02:16:24.000 But gold, right?

02:16:27.000 The reason that gold became money, and a lot of things have been money, and the most...

02:16:34.000 What's been money the most successful has been precious metals.

02:16:37.000 People have used precious metals, and gold has just been the most precious of the metals that has served as money.

02:16:43.000 But the reason that gold became money, because before we had money, it was all barter.

02:16:49.000 If you made chairs and you wanted a chicken, you had to find a guy that grew chickens who wanted one of your chairs.

02:16:58.000 It was very inefficient barter.

02:17:02.000 Everybody wanted gold, or at least wealthy people wanted gold.

02:17:06.000 It was a scarce item that everybody desired.

02:17:09.000 But the beauty of gold was that it's all the same.

02:17:12.000 You can melt it down.

02:17:14.000 An ounce of gold is the same as any other ounce of gold.

02:17:19.000 And people realized that, wait a minute, instead of me looking for a chicken guy that wants my chair...

02:17:25.000 I'll just go, you know, give somebody gold.

02:17:30.000 They don't need my chair.

02:17:31.000 They can buy whatever they want with gold, right?

02:17:33.000 Because gold is a commodity, too.

02:17:35.000 It has value.

02:17:36.000 But unlike a chair, it's uniform.

02:17:38.000 You can put it in your pocket, you know, and they're all the same and you can divide up.

02:17:42.000 So gold had these properties.

02:17:44.000 That made it money.

02:17:45.000 And it was a store of value.

02:17:47.000 And then, you know, over time, there was pricing.

02:17:50.000 People could relate.

02:17:51.000 How much is a barrel of oil in terms of gold?

02:17:54.000 How much is a bushel of wheat?

02:17:55.000 And you can relate one commodity to another and understand pricing, right?

02:18:01.000 Like, you know, in Roman times, you know, you could buy a toga, a nice toga for an ounce of gold, right?

02:18:09.000 What was clothing back then for an ounce of gold.

02:18:11.000 Well, you can buy a suit of clothes today, a nice suit of clothes for an ounce of gold.

02:18:14.000 So, you know, prices have kind of remained relatively constant in certain things.

02:18:18.000 So now, years ago, I guess some libertarians and some other people got the idea, you know, fiat currencies are no good, which is true.

02:18:26.000 They're not backed by anything.

02:18:28.000 Governments keep printing them.

02:18:29.000 They got quantitative easing, 0% interest rates.

02:18:32.000 Gold, though, they said gold is inefficient, right?

02:18:35.000 If I got an ounce of gold, I really can't use it in commerce.

02:18:37.000 I mean, I can't scrape off a little piece of it and buy a cup of coffee.

02:18:41.000 I can't send it across the world and conduct an e-commerce.

02:18:47.000 So someone came up with a digital currency, the first one probably being Bitcoin.

02:18:53.000 Which was supposedly replicating all the properties of gold, only digitally, and making it better, right?

02:18:59.000 So it's like, you know, you mine these Bitcoins, right?

02:19:01.000 Even though there's no actual mining, you're solving these math problems.

02:19:04.000 But you can have a Bitcoin.

02:19:06.000 I can give it to you.

02:19:07.000 You can give it to me.

02:19:08.000 I can break it in half, in tenths, you know, and it's divisible.

02:19:12.000 It's, you know, it's portable.

02:19:13.000 You know, it doesn't decay.

02:19:15.000 It doesn't go away, right?

02:19:16.000 And so they're saying, hey, wait a minute.

02:19:17.000 We can create a digital alternative to gold and use that.

02:19:21.000 People will just use this and people will just get out of dollars and they'll own Bitcoin and then we'll just use Bitcoin as money.

02:19:29.000 And the idea is this is going to happen.

02:19:31.000 But it can't happen because there is no value that ultimately Bitcoin has that can be stored.

02:19:39.000 Unlike gold, gold actually has properties that you can use gold for all sorts of things.

02:19:45.000 People value gold for the metal.

02:19:47.000 Nobody values Bitcoin for the Bitcoin.

02:19:49.000 They value it because they believe that they can exchange it for something else.

02:19:54.000 But the dollar doesn't really represent gold anymore.

02:19:56.000 I know it doesn't.

02:19:57.000 But just because the dollar is working as money, with all the history of usage and the fact that the government accept dollars as taxes, its legal tender, that you have Insurance products, that you have rental agreements, that you have bonds, you have an entire global market in dollars,

02:20:14.000 right?

02:20:14.000 That is never going to be able to develop with Bitcoin or any other cryptocurrency.

02:20:19.000 Ultimately, the value of a cryptocurrency is based on the willingness of somebody else to accept it in exchange for something else.

02:20:28.000 And, you know...

02:20:30.000 When Bitcoin first started, and people used to tell me, well, you know, there's only 21 million Bitcoins, right?

02:20:36.000 You can't have any more than that.

02:20:37.000 So therefore, there's some scarcity.

02:20:40.000 But my point was that, well, but what stops somebody else from creating another cryptocurrency, That is identical to Bitcoin, or maybe it's even better.

02:20:49.000 Maybe it's faster.

02:20:50.000 Maybe it has properties.

02:20:51.000 Maybe it improves.

02:20:53.000 Just like we talked about cell phones earlier, somebody makes a better cell phone.

02:20:57.000 What's your old Motorola phone worth today?

02:21:01.000 It's nothing.

02:21:02.000 So if somebody comes up with a better cryptocurrency, then what's your Bitcoin worth?

02:21:06.000 But you know...

02:21:07.000 I don't think any of these.

02:21:08.000 You know, you have like a thousand of them now.

02:21:09.000 The market cap is about $150 billion for all these cryptocurrencies.

02:21:13.000 And now there are people that are saying, look, you've got to buy a bunch of them.

02:21:15.000 You need a portfolio because you're not sure which one is going to win.

02:21:19.000 None of them are going to win.

02:21:20.000 They're all going to lose because none of them are going to work.

02:21:24.000 Because there's no store of value.

02:21:26.000 People are not using Bitcoins, and nor will they ever use Bitcoins as a real medium of exchange.

02:21:33.000 People use it as a speculative asset.

02:21:34.000 People buy it.

02:21:35.000 They hope it's going to go up in value.

02:21:37.000 Yes, can you sell your Bitcoins and then buy something with the money?

02:21:41.000 Yes, you can do that with any asset.

02:21:43.000 People make a big deal about the fact that my gold company, ShiftGold, We say, oh, we accept Bitcoin.

02:21:48.000 We don't really accept Bitcoin.

02:21:50.000 What we accept is dollars.

02:21:52.000 But we make it easy for people to sell their Bitcoins, to buy dollars, by using a service called BitPay.

02:21:59.000 But they're not actually using their Bitcoin.

02:22:05.000 They're using dollars.

02:22:06.000 They're selling their Bitcoin.

02:22:07.000 And then they're trading dollars.

02:22:09.000 I mean, for Bitcoin to be money...

02:22:11.000 But it still ultimately works, right?

02:22:12.000 It's not going to work.

02:22:13.000 But I mean, that is ultimately working.

02:22:15.000 You can use your Bitcoin, and you can purchase gold with the Bitcoin.

02:22:19.000 No, you can sell your Bitcoin to buy dollars, and then you can use the dollars to buy...

02:22:24.000 But then the Bitcoin, which meant nothing, is worth dollars.

02:22:27.000 No, no, you sold it.

02:22:28.000 You sold your asset.

02:22:29.000 But you sold nothing to get dollars, and you take those dollars, and you buy Bitcoin, you buy gold.

02:22:34.000 No, you sold something.

02:22:36.000 You sold a digital currency.

02:22:37.000 But what is the Bitcoin then?

02:22:37.000 So it's something then.

02:22:39.000 Yes, but you can sell it today for value, but it might be worthless tomorrow.

02:22:43.000 But right now it's not.

02:22:44.000 Because somebody will pay you for it.

02:22:46.000 So it's real.

02:22:47.000 It's the same thing as a share of Pets.com.

02:22:50.000 At one point, somebody would give you a lot of money for that stock, and now they'll give you nothing.

02:22:54.000 It's all about perception.

02:22:55.000 I mean, there's always value in gold.

02:22:57.000 And I hear people telling me this, well, you know, gold's value is subjective.

02:23:00.000 No, it's not.

02:23:01.000 It's objective.

02:23:02.000 Gold has value because it satisfies certain desires or needs.

02:23:08.000 It has properties that exist in the physical world, and there are things that you can do with it.

02:23:11.000 The only thing I can do with my Bitcoin is give it to somebody else.

02:23:15.000 But I know people think, oh...

02:23:17.000 But the blockchain is so great.

02:23:19.000 Maybe it is.

02:23:19.000 Maybe the blockchain is a great invention and maybe over time a lot of assets will utilize the blockchain in transactions.

02:23:27.000 But it doesn't mean that just because Bitcoins utilize something of value that the Bitcoin itself has any value that is going to endure to the owner of that Bitcoin, especially, you know, when there's an infinite number of coins.

02:23:39.000 But here's something interesting because, you know, The idea is, hey, you know, we need this digital gold because gold can't be used in commerce the way Bitcoin can.

02:23:50.000 The irony of it is it can, right?

02:23:52.000 There's a company and, you know, called Gold Money, goldmoney.com, and you can go there and you can open up an account.

02:24:00.000 Everybody listening should go to goldmoney.com.

02:24:02.000 You can do it on your cell phone, on your app.

02:24:04.000 And what they do, right, is they allow you to buy gold.

02:24:07.000 You can also buy silver and platinum, palladium, but let's just focus on gold.

02:24:11.000 You can buy gold.

02:24:12.000 They sell it to you for one half of one percent over spot.

02:24:15.000 Very cheap.

02:24:16.000 I've been in the gold business my whole life.

02:24:18.000 I've never sold gold that cheap.

02:24:20.000 You own the gold.

02:24:21.000 They will have it stored for you at a Brinks vault of your choice.

02:24:24.000 And you have different locations in Switzerland and Hong Kong and Singapore and Canada.

02:24:29.000 You can pick where you want your gold stored.

02:24:31.000 And now you own that gold, right?

02:24:33.000 It's in your digital wallet, just like you could have your cryptocurrencies in a digital wallet.

02:24:37.000 But the difference is, you can deliver that gold whenever you want it.

02:24:40.000 The minimum is 10 grams of gold, which is a very small quantity.

02:24:43.000 And they will mail it to you if you want it.

02:24:46.000 But the purpose of it is not to have it mailed to you.

02:24:48.000 You keep it in your account.

02:24:49.000 Now, you can give that gold or any portion of it to anyone you want anywhere in the world for free.

02:24:55.000 I can just transfer my ownership to somebody else.

02:24:59.000 So now there's commerce.

02:25:00.000 If you are a merchant and you want to price your product in gold, you can do that, and I can pay for the product using gold, and you can accept gold in exchange for that good or service.

02:25:12.000 So it makes it so that now gold can actually work in today's modern economy through the Internet.

02:25:18.000 It's now as easy for me to spend my gold.

02:25:20.000 I can use my gold to buy a cup of coffee.

02:25:22.000 I could use my gold to buy a car, right?

02:25:25.000 And in the short run, Right, and I'll show you this card that I have.

02:25:30.000 In the short run, let's assume that somebody...

02:25:33.000 Is that a gold card?

02:25:34.000 Yeah, it's made out of actual gold.

02:25:35.000 It's made out of actual gold.

02:25:36.000 Yeah, it's real gold.

02:25:37.000 This is heavy.

02:25:37.000 Yes, because gold is...

02:25:38.000 This is crazy.

02:25:39.000 Because gold is a real element. 1.00

02:25:40.000 You have a goddamn gold credit card. 0.99

02:25:42.000 This is a gold MasterCard, ladies and gentlemen. 1.00

02:25:45.000 This is a gold money MasterCard, and this is heavy.

02:25:49.000 Like, listen...

02:25:50.000 Yeah, it's- I mean, compare that to just a plastic one.

02:25:53.000 Oh, it's crazy.

02:25:54.000 Yeah, yeah.

02:25:54.000 It's like a hundred of these.

02:25:56.000 Yes, that is real.

02:25:57.000 This is- Listen to this, folks.

02:26:00.000 Yeah, yeah. 1.00

02:26:00.000 This is fucking gold. 1.00

02:26:02.000 Wow, I need one of these in my life. 0.99

02:26:04.000 We'll make you one.

02:26:05.000 I need one.

02:26:06.000 We can get you one.

02:26:06.000 Well, the idea is very appealing.

02:26:07.000 But let me finish this one point.

02:26:11.000 In the long run, I believe that we're going to go back to a gold standard.

02:26:15.000 I believe, and it's not just gold money, but gold money might be the first company to do that, but there may be more that'll do it later on.

02:26:21.000 But I think that government fiat money does not work.

02:26:24.000 Dollars won't work.

02:26:25.000 Euros won't work. 1.00

02:26:26.000 Yen won't work. 1.00

02:26:27.000 But gold works.

02:26:28.000 Gold has worked for thousands of years, but now with the internet, it works even better.

02:26:32.000 And so I think that gold, like through gold money, gold money will do to fiat currency...

02:26:39.000 What FedEx did to the post office.

02:26:42.000 What Uber is doing to taxi cabs.

02:26:44.000 It is the free markets alternative.

02:26:46.000 A money that government can't create out of thin air that will hold its value over time.

02:26:51.000 And now, thanks to the internet, we can be used in commerce.

02:26:54.000 But in the meantime, right?

02:26:55.000 So I've got gold that is stored in my gold money account.

02:26:57.000 But let's say I go to a merchant who doesn't want gold because he doesn't know any better.

02:27:02.000 He just wants to be paid in dollars.

02:27:03.000 I can use this debit card.

02:27:06.000 Right?

02:27:06.000 To buy something and...

02:27:08.000 Is that a debit card or a credit card?

02:27:10.000 It's a debit card.

02:27:10.000 It's not a debit card.

02:27:11.000 It's a prepaid debit card.

02:27:12.000 Yeah, but it's a debit card.

02:27:13.000 You can't tell the difference, right?

02:27:14.000 But what happens is, I can spend my gold using this card.

02:27:18.000 So I can sell off, basically, just like, you know, what people are doing with BitPay, but I don't need BitPay, right?

02:27:23.000 I can go to any merchant in the world that accepts MasterCard.

02:27:27.000 And my gold will be sold, and the merchant will get dollars, right?

02:27:32.000 So I can spend my gold now, but the merchant is actually not getting gold, he's getting dollars.

02:27:39.000 But I believe in the future, the merchant's gonna want gold.

02:27:42.000 Once we start to get a currency crisis, once we see the euro and the yen blowing up, people are not gonna want to sell their goods and services for paper money.

02:27:51.000 They're gonna want to sell it for real money. 0.92

02:27:52.000 Now, there are people who think, well, they're going to want to sell it for cryptocurrencies.

02:27:56.000 No, they're not.

02:27:56.000 I think these cryptocurrencies are going to crash before the fiat currencies.

02:28:00.000 I think they're going to make fiat currencies look good, which is unfortunate, because you have a lot of good people who are putting their faith in these cryptocurrencies, and they're going to get burned.

02:28:09.000 And then the government's going to say, you see, we told you the free market isn't any good.

02:28:13.000 You know, you've got to trust us.

02:28:14.000 You've got to trust our paper money.

02:28:15.000 No, I want to trust gold.

02:28:17.000 I want to trust the private sector.

02:28:19.000 And if I can use gold...

02:28:21.000 Why would I use anything else?

02:28:22.000 Now, I know people say, the knock that the Bitcoin people say is that, well, it's not decentralized, because somebody has to store the gold, right?

02:28:30.000 But of course, because there's real value there.

02:28:33.000 But you know what?

02:28:33.000 Brinks has been storing gold for over 100 years, and they've never lost an ounce.

02:28:37.000 So look, I trust Brinks to hold my gold, but they're holding it in a way that I can spend it.

02:28:43.000 You know, back in the day, right, the first currencies that existed were created by private banks, right, not the government.

02:28:49.000 And so a bank would have gold.

02:28:51.000 Or actually, even before that, it was the goldsmith who would have gold, you know, that he was storing, and he would write an IOU. And the person would say, hey, I've got gold stored at this goldsmith.

02:29:02.000 That piece of paper, right, instead of going back to the goldsmith and getting your gold, you can give somebody, say, hey, look, I owe you money.

02:29:09.000 Take this note because the gold is there.

02:29:11.000 You can go get it whenever you want, but here's a piece of paper put in your wallet.

02:29:15.000 It entitles you to that gold.

02:29:16.000 And that piece of paper could circulate as money, not because it has value, but because it's backed up by the gold.

02:29:22.000 And so eventually private banks started issuing currency Physical paper currency that was backed by the gold that they had.

02:29:29.000 Well, what we're having now with gold money is gold money is like the goldsmith.

02:29:36.000 They're storing your gold, but instead of giving the person the piece of paper that you can go back, you actually get ownership.

02:29:44.000 You actually transfer.

02:29:45.000 So if I was going to give you $100 worth of gold from my gold money account to your gold money account, You're gonna now have title to that gold.

02:29:52.000 It's changing hands.

02:29:53.000 It's gone from me owning the gold in that vault to you owning that exact same gold.

02:29:57.000 Now it's your gold.

02:29:58.000 You can do whatever you want with it.

02:29:59.000 You could take delivery of it and have it in your hand, or you can use it to buy something else.

02:30:04.000 It's perfect money, it's the free market money, and we could use it costless.

02:30:09.000 I mean, it's going to be cheap.

02:30:10.000 It's cheaper than MasterCard, Visa.

02:30:12.000 It's a very inexpensive way for people to trade across borders.

02:30:16.000 Because it doesn't matter what country you live in, gold has value in every country.

02:30:20.000 You don't have to worry about the yen or the euro or the dollar.

02:30:23.000 Hey, I'm in Germany.

02:30:24.000 I want to sell my products.

02:30:25.000 I can price them in gold.

02:30:26.000 And gold is not very volatile.

02:30:28.000 Gold is relatively stable over time.

02:30:30.000 You can actually price a product and get paid in gold, and you can store your gold, and a year later, two years later, you know it's going to have value.

02:30:37.000 You could look at the historic value of gold.

02:30:40.000 So rather than trying to reinvent the wheel, they used to have something, they called it alchemy.

02:30:45.000 Hundreds of years ago, the alchemists tried to make gold out of base metal, and they couldn't do it.

02:30:50.000 I look at these cryptocurrencies as modern-day alchemy.

02:30:54.000 They're trying to digitally recreate gold, and they're not going to succeed.

02:30:58.000 They're just creating digital fiat. 0.98

02:31:00.000 This is fool's gold. 0.88

02:31:01.000 Yes, people have made money speculating on other people's ignorance and other people's greed, but it's going to end very badly. 0.97

02:31:07.000 But I do believe that what they're doing at GoldMoney and what the Internet is enabling is that we can have real money.

02:31:13.000 We can use gold now in a way that our forefathers never could.

02:31:18.000 This is a real modern-day gold standard 2.0.

02:31:22.000 Gold will work better as money today than it's ever worked before.

02:31:25.000 And it worked great in the past.

02:31:26.000 I mean, we thrived.

02:31:28.000 America was built on a gold standard.

02:31:30.000 The Industrial Revolution happened on a gold standard.

02:31:33.000 We produced the wealthiest country the world had ever seen on a gold standard.

02:31:37.000 We've become broke with this fiat standard.

02:31:40.000 We've squandered the wealth that we created.

02:31:44.000 We're good to go.

02:32:05.000 Right now, we're being sidetracked by this bubble in the cryptocurrencies.

02:32:09.000 But the people who are buying these cryptocurrencies should be buying gold.

02:32:13.000 And of course, what they can do now is, if you happen to have some cryptocurrencies, you can sell them.

02:32:17.000 You can go to GoldMoney.

02:32:19.000 They'll let you convert your Bitcoins or altcoins or whatever you got.

02:32:25.000 Ether, whatever crypto.

02:32:26.000 You can go and you convert it and you can buy real money.

02:32:29.000 And then when this bubble pops, you're not left holding the bag.

02:32:33.000 Because a lot of people, I think, unfortunately, are going to end up losing a lot of their money, their purchasing power.

02:32:40.000 They could have bought gold, but instead they bought Pets.com.

02:32:43.000 And they didn't realize that that's what they were buying.

02:32:47.000 I'm sold, Peter Schiff.

02:32:49.000 I love the card.

02:32:50.000 If you just get people to hold on to that, just put that in their hand, they're like, this is a real thing.

02:32:54.000 People have always complained about the loss of the gold standard.

02:32:57.000 I mean, that's a long-standing complaint.

02:32:59.000 You go back to the Constitution, right?

02:33:01.000 Gold is money in the Constitution.

02:33:03.000 It says that no state shall make anything but gold and silver coin, legal tender, payment of debt.

02:33:08.000 The federal government is only given the power to coin money.

02:33:11.000 What are they coining?

02:33:12.000 Gold and silver.

02:33:13.000 I mean, that is the standard that...

02:33:16.000 You know, the first time we mentioned the Civil War, the first time we ever had paper money in America was during the Civil War.

02:33:22.000 And the Union issued it, but it was the greenback. 0.73

02:33:25.000 It was backed by gold.

02:33:26.000 And when the war ended, they stopped issuing them.

02:33:29.000 But they issued it based on an emergency wartime power.

02:33:33.000 It wasn't that they had the right to do it legally.

02:33:35.000 They said, look, it's a war.

02:33:37.000 We need to win this war.

02:33:38.000 And so that's the first time we had paper money.

02:33:40.000 Then it went away.

02:33:41.000 It didn't come back again until 1913 with the Federal Reserve.

02:33:44.000 Is it really possible that this can make a return?

02:33:47.000 What can?

02:33:48.000 That gold standard can actually be something that we all go off against.

02:33:50.000 I am convinced that we're going back to a gold standard.

02:33:53.000 But I think the free market will lead the way.

02:33:55.000 Because if people start rejecting government money, right?

02:33:59.000 If they start rejecting the dollar, if they reject the euro, if they reject the yen, then what is the government going to do?

02:34:04.000 I mean, the source of the government's power really is the money they spend.

02:34:07.000 That's where they buy their votes and they peddle their influence.

02:34:10.000 But if individuals and merchants just start saying, no, I don't want that paper money.

02:34:15.000 You want to buy my products?

02:34:17.000 Pay me in gold.

02:34:18.000 You want my services?

02:34:19.000 Pay me in gold.

02:34:20.000 And if more and more people start opting out of that system and just start working in gold-backed money, which we know works.

02:34:27.000 We don't need the government to make gold money.

02:34:29.000 Gold was money long before the government came around.

02:34:31.000 What the government did is when they took over money, they would debase it.

02:34:36.000 That's where the term comes, because the government would make gold coins and they would stick copper in there or other metals, because they would try to create inflation.

02:34:42.000 But when you had private money, it was gold.

02:34:46.000 And so we don't need the government.

02:34:48.000 The problem is these cryptocurrencies, they're being marketed as the private sector's alternative.

02:34:53.000 It's not.

02:34:54.000 Gold is the alternative.

02:34:56.000 But we now have the method of using gold, right?

02:35:01.000 But I have this in my wallet, right?

02:35:03.000 Makes your wallet heavy.

02:35:04.000 Yeah, but I can carry, if I have $100,000 worth of gold, I have $100,000 in this wallet.

02:35:10.000 It's here.

02:35:11.000 And I can use it to buy a pack of chewing gum.

02:35:13.000 I could use it to buy a flat-screen TV. I can use it to buy a car.

02:35:17.000 So I can buy tiny things with it.

02:35:19.000 I can buy expensive things with it.

02:35:20.000 And here it is.

02:35:21.000 I'm carrying it around.

02:35:23.000 And I can use it through my cell phone.

02:35:26.000 I can take my cell phone and pay for stuff.

02:35:28.000 And ownership of my gold will instantly transfer to a third party.

02:35:33.000 And of course, if you want to gift money, if I want to give money to my kids, I can give them gold, then they can spend it.

02:35:38.000 They can spend it using their debit card or they can directly spend it.

02:35:41.000 So this is the real alternative.

02:35:43.000 This is what these cryptocurrencies are promising to be, but they never will be.

02:35:46.000 But I think a lot of people are getting greedy.

02:35:49.000 A lot of people think, oh, these things are going to be worth a million dollars apiece and pie in the sky.

02:35:53.000 And it's like that greed overwhelms them and they can't think rationally.

02:35:58.000 You know, and anybody that doesn't agree with them doesn't get it.

02:36:00.000 And I had this, you know, the same mentality permeates every bubble.

02:36:04.000 People can't think rationally.

02:36:06.000 And, you know, as the price goes up, you just become more emboldened in what you believe because you're getting rewarded by the market for your mistake.

02:36:13.000 But you don't think it's a mistake because you're getting rich.

02:36:16.000 And you're looking at people like me.

02:36:17.000 Hey, look, you know, Peter, he's not buying.

02:36:19.000 Look at all the money he's not making. 1.00

02:36:20.000 He's a fool. 1.00

02:36:21.000 He should be buying these cryptocurrencies. 1.00

02:36:23.000 So, you know, there's an old expression to don't confuse brains with a bull market.

02:36:27.000 There's certainly a bull market in cryptocurrencies.

02:36:29.000 I think it's a bubble, and I think the people who are making money, some of them are going to get lucky, right?

02:36:34.000 Some people are going to cash out, and they're going to make money.

02:36:37.000 But the money that people make is going to match the money that people lose, because you're going to have a lot of people who are going to come in late to the party.

02:36:44.000 They're going to buy, and they're going to be left hole in the bag.

02:36:47.000 Now, of course, there's going to be a lot of losses that aren't real money.

02:36:49.000 Let's say somebody bought Bitcoin a few years ago, and they paid $1,000, and now it's worth $100,000.

02:36:55.000 But they haven't sold, because they think it's going to $10 million.

02:36:58.000 If it goes to zero, all they lost was $1,000, even though it was worth $100,000.

02:37:03.000 But mentally, they lost a lot more, because they thought they had all this money.

02:37:09.000 And mentally, they got used to having, oh, and it's going to be even more.

02:37:12.000 So there's going to be a lot of dreams that are going to be shattered, because a lot of paper profits are going to just go to money heaven, because they're just not going to be there.

02:37:20.000 But ultimately, the only real money that's going to be made is by the people who cash out.

02:37:25.000 Because this is just a self-generating Ponzi scheme.

02:37:28.000 It's all about needing new people.

02:37:31.000 And that's why I think a lot of people into the cryptocurrencies, they get so upset when somebody like me doesn't get it, because they need more people.

02:37:38.000 They need a bigger market.

02:37:39.000 They need more buyers to come in, to keep paying a higher price, to keep it all going.

02:37:44.000 And so if somebody comes out and says, hey, the emperor has no clothes, You know, because if a lot of people decided they wanted to sell their cryptocurrencies, the price would collapse.

02:37:53.000 And then what would happen?

02:37:54.000 I mean, what happens if Bitcoin goes from $4,000 to $1,000?

02:37:58.000 How do you now make an argument that it's money?

02:38:00.000 How do you console the people that bought it at $4,000 and now it's at $1,000?

02:38:05.000 And then what if it goes to $100?

02:38:06.000 And then what if it goes to $0?

02:38:08.000 Now, you know, there was a time Bitcoin went up to $1,000 and then it went down to $200.

02:38:12.000 And then it rallied.

02:38:13.000 So now people are convinced, okay, well, if it sells off, it's just going to rally back.

02:38:16.000 What if it doesn't?

02:38:18.000 It doesn't have to come.

02:38:19.000 It can keep on falling, especially since there's so many cryptocurrencies now that compete with Bitcoin.

02:38:26.000 I've said, you know, how many people search on Yahoo versus Google?

02:38:31.000 I mean, Yahoo was before Google.

02:38:33.000 Or how many people are on MySpace today?

02:38:36.000 I mean, you know, no, people are on Facebook.

02:38:38.000 So how do you know that Bitcoin isn't the MySpace of cryptocurrencies?

02:38:44.000 But again, I don't think any of these cryptocurrencies will work.

02:38:46.000 But I do think they will work if they back them by gold.

02:38:49.000 You can have a cryptocurrency backed by gold.

02:38:52.000 The only problem there is the government won't like that.

02:38:54.000 Because that'll work so well that the government will shut it down.

02:38:57.000 The government will go and...

02:38:58.000 So that's why, like...

02:38:58.000 How will they shut it down?

02:38:59.000 Well, they might say there's money laundering going on.

02:39:02.000 But that's why gold money...

02:39:04.000 See, gold money does all the know your customer.

02:39:06.000 They know all the KYC. So when you open up a gold money account and you own physical gold, they do make sure they get your photo ID. They get all this information on you.

02:39:14.000 So they're complying with government rules and regulations.

02:39:18.000 So there's no...

02:39:19.000 Nobody's extorting money using gold money.

02:39:21.000 There's no criminals.

02:39:22.000 I mean, that is where...

02:39:23.000 And people have argued with me.

02:39:25.000 I've pointed out that, yes, the one place that...

02:39:28.000 Bitcoin seemed to be used as money, is in crime, right?

02:39:32.000 If I was going to blackmail you and I was going to threaten to shut down your podcast unless you send me some money, I can demand payment in Bitcoin.

02:39:40.000 And the reason I'm doing that is because of the anonymity.

02:39:43.000 I think that, you know, I can get away with the crime.

02:39:46.000 And I don't care if the Bitcoin loses 20% of its value between the time you give it to me and the time I cash it in, because criminals are used to paying to launder their money.

02:39:54.000 They just want whatever they get as gravy.

02:39:56.000 But, you know, if I'm a merchant, and I'm selling, like, I sell gold, right?

02:40:00.000 I sell gold, and my margin in my gold business is about 1%.

02:40:03.000 So, if I sell gold for $10,000, I bought it for $990, right?

02:40:09.000 I have a little bit of profit.

02:40:10.000 I can't afford to do that business in Bitcoin.

02:40:13.000 I mean, the Bitcoin can move 2%.

02:40:14.000 I've wiped out all my profit and I've lost money.

02:40:16.000 I need something that is very stable.

02:40:19.000 But if I'm a criminal just extorting money, it doesn't matter.

02:40:21.000 So it can work for criminals, but that's where the governments can crack down on it. 0.63

02:40:26.000 I've got to wrap this up.

02:40:27.000 So if people wanted to get involved in this, what would be the best resource for them to get information on how to get started?

02:40:33.000 Well, they should go to, you know, the website goldmoney.com.

02:40:36.000 Just open up an account online.

02:40:38.000 And the beauty of this is, too, and you can do this yourself, they have a referral program that as you refer people, you send them your own link.

02:40:45.000 So once you open up your Gold Money account, you get a referral link.

02:40:48.000 And now you can send it to your friend.

02:40:50.000 And now if they open up an account, you get some free gold.

02:40:52.000 So you actually get paid.

02:40:54.000 And so as you educate people, it's kind of like a marketing, but they will compensate you in extra gold.

02:41:02.000 And so when you open up your account, they'll give you a little free gold.

02:41:05.000 You get a little free gold for referring somebody.

02:41:06.000 So I could sponsor it on this podcast.

02:41:08.000 You should be.

02:41:09.000 You can get a lot of free gold.

02:41:10.000 Yes, you can.

02:41:11.000 I mean, in fact, with the number of people that you have on the podcast, you can get a lot of free gold.

02:41:14.000 This seems like a big ad.

02:41:16.000 Like our whole podcast was a big fake ad for free gold.

02:41:21.000 Yeah.

02:41:21.000 Well, it's really for the concepts of freedom.

02:41:24.000 Gold is economic freedom, right?

02:41:26.000 I mean, that's like even Alan Greenspan.

02:41:27.000 That was the title of his essay, Gold and Economic Freedom.

02:41:30.000 But it is.

02:41:32.000 The more people that we can move into their own personal gold standard, the more people that can save in gold.

02:41:38.000 And the beauty of, like, a gold money account, you have your money in a bank account.

02:41:41.000 What if the bank fails?

02:41:42.000 You know, this money is banked.

02:41:44.000 Your gold is banked, but you own it.

02:41:46.000 It's not being loaned out to anybody.

02:41:47.000 It's in a storage facility with your name by Brinks, so you can spend it.

02:41:52.000 When you put your money in a bank account, they loan it out to somebody.

02:41:55.000 You know, me ask, there's government insurance, but so what?

02:41:57.000 They just have to print a bunch of money.

02:41:59.000 You can bank your gold We're good to go.

02:42:24.000 But thanks to the internet, it is the best medium of exchange.

02:42:27.000 It's because it's so easy now to do it.

02:42:29.000 So you can get on, you know, you can promote it, the people that listen to the podcast.

02:42:32.000 I mean, and again, there are other people that say, oh, Peter, you know, you don't like Bitcoin because you're promoting gold money.

02:42:38.000 You know, if I thought Bitcoin was going to work, believe me, I'd have been all over it, right?

02:42:44.000 I have a person of very high principles and standards.

02:42:48.000 You know, I started selling gold long before I had a gold company.

02:42:50.000 I used to tell my brokerage accounts at Europe Pacific Capital, I would tell them, look, buy some gold, and I would just send them, just go buy it.

02:42:56.000 I didn't sell it.

02:42:57.000 And the money that they used to buy gold was money I couldn't manage.

02:43:00.000 Now, I'd make money, you know, managing money for a fee or commissions, and if people took their money and bought gold, I wasn't making any money, but I thought they should buy it because it was the right thing to do.

02:43:08.000 And I got involved with gold money because I thought that they were onto something.

02:43:12.000 I thought that they were doing something big.

02:43:14.000 It's more than just about money.

02:43:15.000 It's about a crusade to take back our freedom, which I think begins with money.

02:43:20.000 Taking the power away from government is rejecting the source of that power, which is the money they spend to corrupt the economy.

02:43:28.000 I mean, this is the most important vote.

02:43:30.000 It doesn't matter who you vote for in an election.

02:43:32.000 Vote with your feet on the money.

02:43:34.000 Vote away from the fiat-based system and vote in favor of gold, right?

02:43:39.000 That's the monetary system that our founders believed in.

02:43:41.000 That's what was embodied in the Constitution, and that's what worked.

02:43:45.000 And you get that sweet card that's made out of actual gold that makes you feel good.

02:43:48.000 Yes, you can get a plastic card for free.

02:43:51.000 I don't want that.

02:43:52.000 But you have to pay for the gold card, but the beauty of it is it's worth its weight in gold.

02:43:56.000 So even though you have to pay for it, you own that gold.

02:43:59.000 It's worth it.

02:43:59.000 Yes, because it's actual gold.

02:44:00.000 You can melt it down.

02:44:01.000 It feels good to have.

02:44:02.000 Yes.

02:44:03.000 I need to have one in my life.

02:44:04.000 People have to understand.

02:44:06.000 Let me hold it one more time.

02:44:08.000 Yeah.

02:44:10.000 Want to hold it, Jamie?

02:44:12.000 Feel that.

02:44:13.000 There's not that many people that have those.

02:44:15.000 Yeah.

02:44:15.000 Feel that?

02:44:16.000 That feels legit, doesn't it?

02:44:18.000 Actually better than a black card.

02:44:20.000 Way better!

02:44:21.000 Way better than a black card. 1.00

02:44:22.000 You're just an asshole. 1.00

02:44:23.000 They actually have all the concierge. 1.00

02:44:25.000 They sign up, too.

02:44:26.000 You can get all those benefits, too.

02:44:28.000 Oh, like you can with American Express?

02:44:30.000 Yeah, they sign you up.

02:44:31.000 Reservations and stuff?

02:44:32.000 Yes, they have the concierge.

02:44:33.000 They have all those programs.

02:44:34.000 So you don't give that stuff up.

02:44:36.000 You just have real money.

02:44:38.000 You know, behind your...

02:44:39.000 You just have to make sure that if you throw it in a restaurant that you get it back.

02:44:42.000 I like it.

02:44:43.000 Listen, we're going to come back next time you're here.

02:44:46.000 Hopefully, this will have taken off and you can say, see, I told you.

02:44:51.000 Yes.

02:44:51.000 Thank you so much, man.

02:44:53.000 It's always been a pleasure.

02:44:53.000 Really appreciate it.

02:44:54.000 Is it three hours already?

02:44:55.000 Yeah, it flew by, man.

02:44:56.000 We started late.

02:44:57.000 It hasn't even been three hours.

02:44:58.000 We're good.

02:44:59.000 That was amazing.

02:45:00.000 Thank you.

02:45:02.000 You have so much energy, man.

The Joe Rogan Experience - August 23, 2017

Joe Rogan Experience #1002 - Peter Schiff

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