Fiercest Fires Were Lit by the Fed Ep 610
Leadership. Show. I WANNA. Thank indeed. They are the newest sponsor of the Peter Shift show podcast right now small businesses have to be more efficient than ever when it comes to their hiring in every decision they make is critical indeed is the number one job site in the world and you can get a seventy five dollars credit at indeed dot com slash Peter Terms and conditions apply and this special offer is only valid until September thirtieth so don't wait act now. Major stock markets closed out a moderately higher week on a mixed note today, you had the Dow in the SNP ending positive you had the Nasdaq Russell two thousand on negative, but I would make much out of this week's bounce I know there are a lot of people. Now that are saying it's bottom. The vicious bear market that we had last week is already come to an end and of course, in in a few individual stocks, it was a bear market but overall none of the major indexes I dipped into bear market territory but I don't think the Bulls are out of the woods on this one. I still think the charts look like there is a lot of potential that we can see decline. Of course, you've got the backstop of the federal. Reserve in fact, it's only because the Fed is there that the market didn't have a bigger drop this week. The reason we didn't have more follow through is because people expect the Fed to come to the rescue. In fact, if the Fed wasn't there, the market never would have been at the levels that it just dropped from me while gold had a small gain on the week nothing big but technicals are looking incredible on goal goal think is around one, thousand, nine, hundred, forty, three. It is building this new support or consolidating rather above. These support level that used to be the resistance level these spike. Hi that we had in two thousand eleven of about nine, thousand, nine hundred. That's now the support and the longer the old high can remain the new Loewe, the new resistance I think the stronger this next rally is going to be the gold stocks were actually down a little bit on the week. So you still have a lot of skepticism there. You have a lot of nervous bulls, but to me, it looks beautiful chart looks beautiful. The fundamentals really looked beautiful for these stocks I just think you take. Advantage, if you're not a positioned well in the sector now's your chance I. Mean You you. You had better chances earlier certainly march was a gift horse which I strongly advised my listeners not to look in the mouth and to buy with with both hands. But even if you didn't take my advice back, then you can still buy even if you did take my advice back then and you bought, you can still average up if you don't have a big enough position and one good way to take advantage of the gold price before it makes its next move up. About the Perth Mint and I've been working with the Perth Mint in Australia now for I don't know almost twenty years, not quite two, thousand and two. Thousand and three is when I first became a dealer for the Perth. Mint. But I think that's another great way to have some gold stored outside the country and they have a great program for physical goal. They will store your unallocated gold for free no storage fees and over time that adds up restoring it for you for free year after year you're in good shape. So it's a great way to have gold. I recommend that people have gold in various locations, diversify where you store your gold because you never know but the Perth Mint is a great place to store it. It's a government owned entity reinsured by Lloyds, very, very safe depository for your gold. So you can trust that your goal is there. Nothing's going to happen to it, and if you're interested in learning about the Perth Mint, if you have an account now with Euro Pacific capital. Talk to your broker, because all the Pacific capital brokers can help set you up a Perth account and we're the only dealer. By the way they can work in a lot of these western states like California because of the model state laws that exist. So we're the only dealer that can help Americans at about thirteen states are how forget the exact number, but they're mostly out west were all these fires are. But so we can help you. So talk to your broker if you don't already have broker. You just call up and talk to Danielle Parsons are or just go to gold. You can fold dot com that's the website that I set up that will take you directly to the Perth Mint Page on the Euro Pacific capital website that's gold. You can fold dot Com and get a hold of Danny and she'll set you up and help you by there are some storage fees on silver now, they used to do that for free but now they've got so much silver. They don't have any room for more of it so they have to start charging, but it's still a very, very low rate on your silver but. Remember zero storage fees for the goal. Of course, the biggest factor that's ultimately going to be driving gold and gold stocks is going to be inflation going to be inflation and a weakening dollar. The dollar is going to lose value not only against other Fiat currencies but it's GONNA lose even more value against real money gold and silver, and it's going to buy less and less. In fact, we actually got some of the government's official numbers that purport to measure inflation. Of course, they don't they measure consumer prices and they don't even do a good job of doing that because the way the government has reverse engineered. The CPI and the P. i. a lot of the gains that prices are experiencing aren't even reflected in these numbers by the time they grind through the mill there and they adjust them. He'd Gone Ikley and they do some weighted averaging or whatever happens the data that comes out does it really look much like the data that that goes in? and. So we constantly get a more benign picture of what's happening the prices consumers are paying prices that are rising at rates that are faster than what we get from these official numbers. But the numbers we got, we got the producer price index that one came out yesterday and the consensus was for point two percent increase you know pretty low. Much lower than the point six we got for July and we ended up with point three. So a hotter than expected number. More than people were looking for, and in fact, if you look at the core right ex food and energy, they call that the core month over month that was up point four, they were looking for a gain of two to double estimates, not quite as much as the point five from July, but back to back point five point four, these things are adding up year-over-year though only up point six percent on the core. Ex Food and energy, but they were looking for up point three. So again, the numbers low but not nearly as low as people expected. But the reality is the numbers are actually much higher than at and regardless these numbers are GONNA go up. So these low numbers are not gonNA be as low in the future as they have been in the past and eventually they're gonNA be high by any standard the CPI though that came out today also August CPI, they were looking for point three on that one. Again, a slight beat at point four that's the headline number. year-over-year, they were looking for up one point two up one point three. So still well below that two percent number, which now the fledged bed seizes a floor rather than a ceiling or a target. So according to the Fed Bay still have a lot more inflation that needs to be created because prices are not rising nearly facet a member they want to get the average above two percent and right now we're still running below to the way they measure it. So they've got a long way to go to succeed. Of course, their success is the economy's loss. But they haven't figured that out yet. On A. The core right ex food and energy double again, they were looking for a point to we gotta point four and you're every year on the core. Now it's up one point, seven percent. So we're almost at that two percent level when you just look at the core CPI which you know the Fed used to light to look at, but you know they always. Change. If they like to look at whichever was lower. So if the core is running lower than the headline, they like to focus on the core. But then if the core is lower than the headline, then they focus on that so you ever Lower is where they're going to say, that's the the index we're looking at because of course, they don't WanNa, ever have to do anything about. Inflation being too high. Because that's exactly what they want. They want more inflation, and now they've actually come out and confessed it. I mean they had been in the closet for a long time and everybody at the Fed was a closet inflationist. They just didn't want to come out of the closet and admit it because you know you know want to admit to something like that. When you're on the Fed I, mean because people think they're the firemen they don't think they're lighting the fires but now you have the Fed coming out and telling you, we're GonNa like two fires where a bunch of arsonists and we're going to go out and set fires in. We will don't think that that's the problem. But one person who does think it's a problem is Alan Greenspan. Very ironically, the Maestro himself was on CNBC yesterday and I caught that interview live. And you know as Alan Greenspan gets older an older right and you hear him talk. No. He sounds more like me and less like his prior self. And in fact, if you hear him talk in different settings, he's even more concerned. Then he? Seen BC. Yesterday but member, I think Alan Greenspan. Is the most knowledgeable of the Fed chairman that we've had since Greenspan. Right. So if you compare Greenspan's understanding of economics and banking and money and all that he towers above a Brac Yellen and Powell. And he's the guy that wrote the playbook that these guys are following. The differences he knows it doesn't end. Well, I think he wrote that playbook knowing that it was gonNA lead to disaster eventually but he didn't care he at the time. Greenspan. Just fell in love with his own popularity was the hero of Wall Street everybody loved him and went to his head, and you know that old saying about power corrupting well, it certainly corrupted Greenspan absolutely I'm sure Iran was doing somersaults in inner grave they used to be buddy-buddies. evacuee wrote a very, very brilliant piece case for gold, which was in reaons capitalism the unknown ideal, which is a great book that my father gave me to read very early on when I was young man I read that book I. Think I was probably I might have read it in high school or college I can't remember but it was one of the earlier introductions I had to both ran and capitalism but Alan Greenspan's essay is there And you know you could still read that US online too. So the guy who wrote that obviously understands Fiat money central banking and and he was a big critic of the Fed and the next thing you knew he was the leader of the FAT I. And and so he kind of instead of trying to dismantle it from within he then really tried to legitimize it and he's the one that started to say that. Well, you know he looked at the price of gold when Alan Greenspan was a fed chairman he admitted that he watched the price of goal quite closely and of course when he was fed chairman newest around four hundred dollars an ounce three, hundred dollars an ounce I forget the exact price. But if you listened who is old interviews from the nineties, he will mention that he watches. The price of gold as a measure of whether his monetary policy is good right? Because he says, if the price of gold is rising too much then obviously I'm too easy. I'm creating too much inflation and if the price is falling too much then maybe I'm too tight and I need to ease up and what Greenspan was claiming even though he's a gold bug at heart, he said, you know we're smart enough now the central bankers that we can supply the same discipline that gold did, which was all bs he had no ability to do that. But he was saying that we're going to substitute the judgment and the wisdom of central bankers for goal but we're still going to use gold as kind of a broader so that even though we're not officially on a gold standard, unofficially, we're going to watch the price of gold to kind of keep policy in line and if we see the price. Of Gold going up towards four hundred while we're too easy and now if it goes down below three hundred or too tight and so goal is going to be a guidepost. So we're not just in the dark here. So he recognized the importance of gold and you know what the implications are and what it says about monetary policy even though he wasn't. A return to the gold standard, which is something he advocated at one time before he was the Fed chairman. But so he's on CNBC. Yesterday, and of course, now you know gold is over nine, thousand, nine, hundred dowse. So based on the criteria that Greenspan used to use to judge himself if he applied that same gold standard to Powell while palace failing clearly, if you're supposed to watch the price of gold as an indicator of whether or not, you're too loose or too easy and you got gold over nine, thousand, nine, hundred, it's obvious that you're too easy and Greenspan has the same opinion because when he was asked by whoever was interviewing I, forget who it was but the question he was asked was once your big concern what worries you the most and his answer was inflation. and. That's what's worrying Greenspan most and again ironically inflation is actually what Powell claims to be his biggest worry. But they're worrying about the same thing for the opposite reason is he greenspan is worried about inflation because he thinks there's too much of it. He thinks inflation is going to be too high. That's why he's so concerned about inflation he's worried about inflation running out of control. Powell on the other hand is worried about inflation being too low. So you have two people one, a former fed chairman and one the sitting fed chairman both looking at the same data points and coming to the opposite conclusion I mean the polar opposite, they both pinpoint inflation as the biggest threat. Greenspan who used to be the chairman of the Fed, who's the longest serving chairman ever, and who we can we call them the maestro. This guy is saying I'm looking at the data and I'm worried inflation is too high and it's going to get worse and Powell looking at the exact same data says I'm worried about inflation do but I think it's too low I'm word we don't have enough inflation. We need to create more. We need to go out of our way to get even more inflation because we don't have enough. So how is this possible? Right? How can a prior Fed Chairman? have. The exact opposite opinion of the current Fed chairman because what are these guys is right and one of these guys is wrong right? They can't both be right when they have opposite opinions. So one of them is going to be right and one of them's going to be wrong and my money's with Greenspan as I said, he wrote the playbook he knows how it ends palace no idea how this thing is he doesn't understand the playbook are the rules he doesn't know how the game works you know and it's funny too because Powell when Powell was initially appointed. As Fed chairman he he thought his job was to normalize interest rates. He didn't. He didn't realize that his job was just to blow another bubble. Right? He came to the Fed he approached it. Hey, I'm an outsider. You know I'm not an academic and yeah, you know we need to raise rates and he you know he's continued to raise rates. Yellen started it, but she barely raised any rates. So now this power comes along and thinks that he can keep on doing it, and so I'm gonNA normalized rates and of course, donald trump when he campaigned hey, we gotta get rid yellen she's just a lackey she's just doing political things. She's just blowing a stock market bubble and printing too much money just to try to make Obama look good and vote for me I'm Gonna I'm GonNa have you know? There are a lot of people that you say trump is a good guy. He wants to go back on a gold standard. He's for sound money. What are you kidding? Does these that he's not advocating it but he was certainly trying to throw a little meat to that wing of the Republican Party that is for sound money. So and he talked talk. But of course, he didn't walk the walk at all because as soon as Powell took office and started raising rates. What was trump saying pals a full house in idiot we gotta get rid of Powell for a while Powell was public enemy number one. Powell. Was a bigger threat to the economy then China according to. Trump of course, it didn't take long to get Powell's mine right? Right. As soon as the stock market started tank in the fourth quarter of two thousand eighteen. Pal Star playing ball cutting rates back to Qe that was twenty, one, thousand, nine, hundred he didn't call Qe. Not. They came up with a distinction without a difference to try to rationalize what they were doing. But of course, they dropped all the pretense. On Cove nineteen and they went straight to zero didn't even pass go all the way to zero. QE QE qe infinity. So, all that happened while Donald Trump was leading the cheers right more money printing more money pretty in fact, donald trump is saying rates are not low enough there up zero we need negative. So he criticizes zero percent interest rates as being too low when he's a candidate and now he's the president he says that's too high. We need to have negative rates. So Powell came into office thinking that he actually had a real job, and then once he got the job, he realized that what the job was was property bubbles that prior. Fed Chairman had helped inflate, and so that's really what he is doing and his concern is that there's not enough inflation. He's concerned about keeping these asset prices levitated maintaining this phony wealth effect because that's all they can do. They can't create legitimate economic growth. All they can do is create the illusion of growth and what Powell wants to do is preserve that illusion as long as possible even if it means things getting worse, but Greenspan isn't in office anymore and so he's a little more circumspect and I don't know maybe he's just. Trying to get into heaven at this point based on how old he is. So he's trying to be a little bit more honest although he's not really A. Publicly atoning for his own sins and kind of fessing up. To mistakes that he made and how he really has set us up for the crash that's coming. But at least he's speaking about the problem with debt and the problem with entitlements, and the fact that we're GONNA end up printing all this money to monetize that and how dangerous this is and how much is worried about now would have been nice if Greenspan did something about it when he had the opportunity back in the eighties or nineties, you know he didn't have to monetize the DOT com bubble and enable that he didn't have to do the same thing after September eleventh and inflate a bigger bubble in real estate which popped and to the two thousand eight financial. Crisis. Alan Greenspan had an opportunity as fed chairman to do the right thing. If he was worried about inflation, you should have been worried about it back then and done something about it. So now it's too little too late to come and try to criticize the card fed chairman although he doesn't come out and actually criticize them. It's kind of like an unspoken rule. Prior, Fed Chairman never criticize the guy who's got the job. But. Obviously, if you saying he's worried about inflation that is de facto criticism of Powell because Powell says, we need more inflation and he wants to create it well, obviously, Greenspan would have to say that pals doing a bad job if Greenspan is worried about inflation and palaces, we need more deflation right? So but he doesn't WANNA come right out and saving a bad job you gotta read between the lines which isn't That hard to do. But why didn't Greenspan do something when he actually had a chance of course back then it would have been difficult. He would have to take a stand like vulgar did and incur the wrath of Wall Street and. Politicians you know Volker was willing to do that. Volker, is willing to take the heat and Ronald Reagan was willing to stand by his Matt. He wasn't like Donald Trump criticizing vulgar for those high rates he stood behind him and that was one of the reasons that the policy work it had the support of the President but Greenspan was no Paul. Volcker. And you know he he just never met a bubble that he didn't want to reflate. In fact he never met a bubble that he recognized Greenspan was famous saying you can never spot a bubble in advance, which is BS. And then he said that the best thing to do is wait for bubbles to pop and then deal with them afterwards rather than trying to contain them before they pop, and of course, what was Greenspan's? Game Plan how do you deal with a bubble? This pops inflate a bigger one. What kind of ridiculous plan is that you know it's just that they didn't have the guts to rain on the parade. That's why the Federal Reserve doesn't WanNa, recognize a bubble early and prevent it from getting bigger because then they're the party pooper because when all the people are partying in the bubble, they don't know it's a bubble. They don't want the Federal Reserve to try to end the party take away the punch bowl but that's exactly what they're supposed to do of course now, the PUNCHBOWL. I mean it's not even a bowl anymore it's a swimming pool full inch and it's already spiked. Probably, all alcohol, you could probably barely even see the punch that's left in that swimming pool, but they're never going gonNA take it away. It's a permanent fixture that's all we got, and they just got to keep increasing the amount of alcohol that they pour into the swimming pool. But the interesting thing is more people don't think about this and say, wait a minute. Why is Powell's judgment any better than Greenspan's Right I mean, we think palace so smart because he's the chairman of the Federal Reserve well, at one time we thought Greenspan. Was Really Smart because he was the chair of the Fed reserve now unless you just think he's senile Alan he's not a sharp as it used to be when he was not quite as old. But if you think that he's maybe gained some additional wisdom in his older years even more experience, there's no reason to believe Powell and say that that the Greenspan is Wrong, you could just as easily say that Greenspan's got it. Right which means we're in a lot of trouble right? Because if Greenspan is right and the problem is that we have too much inflation and now you have pal saying we need even more I. GotTa make sure that we have even more inflation than the inflation that Greenspan is currently worried about right. This is a massive massive disaster in the making, which again is why I mentioned earlier you gotTa do something you got to protect yourself. Against inflation remember today's podcast is sponsored by our brand new sponsor indeed dot com. It is the number one job site in the world and indeed gets you to the very best people and it gets you there fast unlike other sites indeed gives you full control and payment flexibility over your hiring you only pay for what you need and you pause your account at any time and there's no long term contract plus indeed provides powerful tools to make your search that much easier in fact I was on their side today I'm actually in the process of signing up because we are hiring. At Your Pacific capital. So you can always send your resumes in you know in Puerto Rico we need some people fast your civic asset management, but I was perusing on their website and it's a great way to look for a job because I went up there and I was kind of like pretending that I was looking for a job in financial services and you just put your your location and you can even qualify it how many miles salary the. Full time part time and then you can go and get a whole list of these jobs come up you could read about him he has a place where you can upload your resume get it on their employers can look at it I mean obviously in today's Day and age of covert I mean this is probably the best way more than ever these online recruiting and job sites is the way to go and I think when it comes to the use online. Job Sites I think indeed is the way to go. They've got seventy, three percent of the online job seekers are visiting each month. So you'RE GONNA get a lot of quality. Candidates looking at your ad if you've got an account at indeed. So right now they are offering my listeners a free seventy, five dollars credit. To boost your job post, which means more quality candidates will see your ad and see it fast. So you can try indeed out with a seventy five dollars credit at indeed dot com slash Peter. This is their best offer that they've got right now and you're getting it on the Peter Schiff show podcast. So go to indeed dot com slash Peter and remember. Terms and conditions do apply, and this offer is only valid until September thirtieth. So Act fast also, you know while I talk a little bit about the fires that the central bankers have been lighting Mother Nature is lighting a lot of fires of some of these fires actually got started as a result of man a man made and not because of global. Warming, right? I mean some of them just get started because humans are careless when it comes to fire but you've got some serious serious wildfires burning out there on the west coast I mean particularly California Oregon Washington state but also there's a few other states out west that are dealing with these fires but it really is kind of apocalyptic out there I mean. Right out of Mad Max movie. If you look at the color of the sky a tell you though I mean a lot of people are going to be very, very excited for twenty twenty to come to an end I mean we've had a lot of stuff going on I. Mean we we have these wildfires in California out there in fact, every couple of. Years, it seems like they're the worst wildfires ever. So they keep getting worse. Of course, you've got a lot of people that are blaming all this on global warming, but I just want to highlight again this is another headache and other major problem that we don't need because what are these fires doing? They are destroying stuff they are destroying buildings will now what? Do we have do we have to replace what we lost now I know you're GonNa get a lot of these Keynesians who think, oh, this is great news. This is good for the economy right? Natural disasters. Great because now we get to build, we get to rebuild. Well, that was great. Well, why wait for Mother Nature just burn our houses down right and Then we can. We can all get rich building back. The problem is you don't get rich just replacing what you lost your treading water, and the problem is the resources that are going to be needed to replace the houses that will use the have, but now burn down. Those are the resources that we could've used for other stuff, and now we could have. Had the other stuff in addition to our houses, and now we had a sacrifice that other stuff to rebuild the houses that we lost right and so the scene right what you see is, Oh, here's this new house that got built. What you don't see is all the things that didn't happen because the resources that would have made them happen have now been diverted. To rebuilding what we already lost. So disasters never make you richer. They always make you poor and now we're getting hit at a time where we really can't afford to be hit I mean look at what was happening lumber prices. Lumber prices were already zooming what's going to happen to him now I mean how much more lumber do we need to replace the House that we're perfectly good houses that now no longer exists, and of course, you know a lot of these houses. That had been built in areas that are prone to wildfire I mean what are the reasons that we can keep building in areas prone to natural disasters like floods and things like that is because the government subsidizes insurance and keeps the premiums lower and actually encourages people to build houses in areas where there are likely to flood burned out I mean what we need is a free market so that fewer people build in those areas and the people who do take better precautions. In their construction. And you know to guard against this, but you have the government actually underwriting risk and subsidizing people to engage in risky behavior, and so we have more of it, and so now we lose more houses and then the Garmin comes with all this disaster relief and federal aid. But of course, where does that money come from? They have to print it so Again the wildfires are gonNA destroy our stuff, and now we're GONNA have to print more money to try to replace the stuff. So we have less stuff and more paper money. Again, this is adding fuel to the inflation fire. That's the one that's really going to be ravaging the economy obviously this one I mean you're talking about people are losing their lives and property is. Being damaged so that that loss you know is is not measured in dollars and cents, but the loss, even the cost to the economy of having to rebuild those Those structures is still going to be small relative to the overall damage that the federal. Reserve and government are doing to the US economy and of course, a lot of that damage that is being done. Is the result of legislation. That was enacted nineteen years ago. Today is the nineteenth anniversary. Of September eleventh and again, it's not really an anniversary because an anniversary is something that you celebrate nine eleven is nothing to celebrate I. Mean you can commemorate, but it was nineteen years ago today September eleven two, thousand and one. that those airplanes crashed into the twin towers we had the. Crash into the Pentagon and another one was crashed in a field because the the the passengers got wise to what was going on and they sacrifice themselves to save others on the ground. But The real loss apart from the loss of life and whenever I talk about nine eleven and talk about. You know the other. Damage I never want to minimize the fact that a lot of people died. And the impact that had on on their families and their friends but. The impact on the nation in fact on the world is so much greater and I always say that the terrorist one on September eleventh. And they didn't one because they succeeded in knocking down the trade. Centers. That wasn't victory I. Mean we've replaced it. I mean we have freedom tower now i. mean the city you know we rebuilt. No the terrorist one because of what America did in response to those those those ozarks we terrorized ourselves. The worst piece of legislation that started it was the Patriot Act right Patriot Act which of course had overwhelming support Bush was the president who could be against the Patriot Act what you're not a Patriot we're at war. We're having a war on terror everybody has to be patriotic when we have a war. Right. So let's just pass this Patriot Act. Except the Patriot Act is probably the most unpatriotic act ever pass, which was why it was appropriately named. There is no truth in legislating. If there was all these politicians would be in jail, but it started the Patriot Act and that is all anti money laundering and again you know the government sold the American public on this as hey, we're gonNA fight terrorism see. The WAY WE'RE GONNA make sure that we don't have another nine eleven is we're gonNA catch terrorists where there were they bank we're GonNa, find worthies, terrorists keep their money. So the next time they try to finance and operation this, it won't happen because we're GONNA snuff out through the banking system, right? All of that was be s right? No terrorism is being stopped. By anti money laundering laws and all this stuff that came about as a result of the Patriot Act the real purpose of the Patriot. act. Was To destroy all financial privacy I, in the United States and then in the entire world. and. So the government doesn't want anybody having financial privacy because they want to know exactly where everybody's money is not because they're worried about terrorism is because they're worried about people not paying taxes. That's the threat that they're concerned about. Especially when they know they're gonNA keep raising taxes higher and higher and higher and higher taxes go the greater incentive people had to not report their income. And try to find places to hide it. So the real target of the Patriot Act wasn't terraced. It was regular citizens who may not be a hundred percent compliant when it comes to income taxes wasn't even drug dealers. I. Mean. A little bit more drug dealers terrorists I mean yes. It does probably help a little bit but that's still small compared to the real goal which is. Clamping down on on tax compliance. But also you know as governments get more and more oppressive the more they know about you the easier it is to oppress you and the easier it is to suppress any kind of uprising. You know because eventually you know you have very corrupt governments and they pass all kinds of horrible laws. But then if you oppose those laws, you become a lawbreaker, you become a quote unquote terrorists and now they can use all this power to get. You, but you're really not a terrorist right, your your freedom fighter the terrorists does the government that's terrorizing citizens. But the way they're able to preserve their power and to prevent an uprising is to have all this financial information at their fingertips about all the citizens because now they know what everybody's doing and they can put a stop to it. You know before nine eleven if you opened up a bank account I, mean you had some semblance of privacy in that bank account. I mean now you don't have any privacy at all. In fact, your banker and your broker, it totally screwed up the brokerage industry I mean my compliance costs running my broker dealer went through the roof. After the Patriot Act. Start hiring all kinds of people I mean basically made it impossible for small people even stay in the brokerage business I'd say that one of the biggest reasons so many small firms left was because of the. Costs from the Patriot Act and all that stuff. But basically, the government turned the entire financial industry into unpaid IRS agents and spies where everybody has to spy on their customers. And? Try to figure out if any of their curse customers. Have raised a red flag, and they have to file these suspicious activity reports SARS on their customer's rat them out to the government. In and most of the time that you see something that look suspicious, there's an honest explanation for it, but you're supposed to just report them to the government that's your job, and you know, and if you don't report when they audit you and they have these huge audits and they look through all of your books and records, and if they come up with a transaction that does raise a red flag in. Their mind and you didn't file a report on it. Then you're in trouble, you could be fine. You could go to jail it becomes a crime not to report up potential crime even if what you fail, the report was totally innocent. The fact that you didn't go out of your way to route that personnel to the government well, that makes you a criminal to and so realize this that your banker and your. Broker is spying on you by law they are required to spy on you, and if they see that you've done something suspicious, they're required to rat you out and they're not allowed to tell you see that's also a crime. See if you see somebody if you're a bank or a broker and you see some transactions that are a little suspicious, it's a crime to alert the client. Hey, you know we're looking at. This you know let's kind of suspicious. No, no. No, you're just supposed to keep it quiet because you're not supposed to tip them off to the fact that now they're going to, you know get investigated by the IRS, which is what's going to happen. So I mean it really destroyed. You know what was left of American freedom and of course, they just been building on it ever since bigger and bigger and bigger. And it's gone through the whole world. Now, it's not just America right. We lead the charge on destroying all the privacy when it comes to your finances all under the guise of we gotta go after the terrorists, and then we have to go out to the drug dealers. That's just a distraction. And even if you think that's a good idea to go after the terrorists of the drug dealers you never want to give the government that kind of a tool because they will use it against you right there once they have the tool, then you can't stop them. They're gonNA, use it against law abiding citizens even citizens who are compliant with these confiscatory taxes there still being run through, you know through the wringer but the cost of complying with these. Rules and regulations I mean. That's one of the reasons that it's so hard for me to do stuff at my bank, these rules and regulations why goal money had to give up on it's ambitious plan of making gold money and allowing people to use gold really as a meeting of exchange. The technology is there. It's so simple to do. It's never been easier to transact in gold in the history of the world, the only reason that we can't do it. Is because government regulation makes it. So expensive now is that a coincidence well, because obviously the government doesn't want people to have a superior alternative to their Fiat currency, and of course, they want to be able to spy on every transaction we make they want to micromanage and have more control, and they have all this control because of nine eleven. So the terrorists one we have lost so much freedom we are much less free. We have far less liberty today. Because we were attacked by terrorists, but the terrorist attack is it. What did it? What enable the terrorists to win was what we did to ourselves it was the way we reacted to their to what they did, and maybe they knew that was going to happen maybe maybe they were smart enough to realize that that was the real damage and of course, you know there are people out there that try to think, hey, maybe this maybe we planned it look. I don't think that our politicians are smart enough to pull off something like that and to cover it up. But what they are smart enough to do is take advantage of it. Right never let a good crisis go to waste and that is exactly. How they approached nine eleven they did not let this crisis go to waste and they used it to dramatically expand government to declare war on terror because it's always during wartime that are most willing to surrender their rights and liberties, and that's exactly what happened and they're doing the same thing again. With covid nineteen, we now have a war on a disease and the government is using this war as another excuse to diminish our rights, diminish our freedoms and to expand its own size where we're getting more government, we're getting more government regulations more government spending more government programs because of this war on. COVID. Nineteen. Just. Like we had the war on terror. So we're doing it all over again we're doing to ourselves in once again, just like we did more damage to ourselves than the terrorists, the government's Covid nineteen cure is far more damaging to our economy than the disease itself. I, WANNA, Finish up today's podcast though by talking about the season opener that we had last night NFL football returns are they're actually playing games. There were fans in in in the in the stadium. Far, fewer fans than normal but actually the work quite a few fans I. Guess they were social distance than I couldn't really tell you know the masks that they were wearing. But What was more interesting to me was really not what was going on on the field. During the game right and you had the defending Super Bowl Champs Kansas, city chiefs hosted the Texas Titans beat them. But the action on the field to me. Was Secondary to the action that took place on the field before the kickoff, and that was this unity where you have all of these NFL players just like you know, the the NBA players they need to show their fans in the world that they stand with black lives matter. And they stand with George Floyd. And actually. I mean I'm glad they didn't actually come out with any posters with pictures of George Floyd or anything I mean his name wasn't part of the protest but. What they were doing is they were all standing together before the game to signify their support for racial equality, racial justice and to acknowledge all the racial injustice right to acknowledge this systemic racism that we now all agree right or not all of us, but a lot of us now agreed is not only real but is the reason that there are so many problems in the African American community. It's all because of racism, and so the NFL players they wanna get together and they want to show their support because they think in. So doing they will help push America to doing what's right and finally tackling this systemic racism. Acknowledging it a Tony for the sins doing something about it. I don't know reparations whatever. But this is how we can solve the problem and course you know even these NFL players are demanding that the owners do more spend more whatever to eradicate. Racism. And it really just bothers me to see all of these. High, paid professional athletes very highly paid professional athletes. Many of them African, American complaining about Racism Right I mean obviously raises them didn't impede their success right? Look at Patrick. Mahomes who is the quarterback of the cheese? WHO's I mean? He's half Black Right I. Think His dad is black and his mother is white but you know Obama was half black and he was black. So you're half black, you're black. And he's about to become I think the highest paid. NFL Player in History I. Think he's I I heard that he's GonNa be doing a five hundred, million dollar contract I mean half a billion dollar contract to play football. Racism. Didn't prevent Patrick with. Mahomes. From getting that contract you know Patrick Mahomes is smart. He will get a goal clause. Right have a goal clause on his contract. Because we could have such massive inflation. Around his contract. I mean, it's still probably going to be a lot of money but you never know I mean you. We can have hyper inflation and he's paying playing monopoly money. So he should really tied to the price of gold, but clearly, the NFL is not racist but that doesn't stop a lot of people from somehow claiming. That the NFL is racist and one of the ways I hear people trying to claim that the NFL is racist is they point to the number of black head coaches in the NFL and right now there's three. And there are thirty two NFL teams. So a little under ten percent was at nine and a half percent almost ten percent of the coaches are black. All right I mean a little bit less than the thirteen percent of the population is black I. mean if they hired one more coach, there were four we'd pretty much be there if there were five out of thirty two, what's fifteen sixteen percent you'd be over represented but they'll say no but wait a minute you can't look at it. Relative to the population. Look at the fact that seventy percent of the NFL players are black. So if seventy percent of the players are black, well seventy percent of the coaches should be black. I guess. That's their reasoning which first of all, once you have to acknowledge that seventy percent of the players are black right there. Wait a minute I mean, how can the NFL owners be a bunch of racists if seventy percent of the players? On their teams are black. Racism isn't preventing them from hiring all these black I mean the people who should be complaining should be the white players or the Hispanic players or the Asian players I mean, they're not getting hired right why aren't they complaining in fact you know you got all these guys in the NFL that are complaining about racism you know maybe we should boycott the Games and say you know you're right. We need the NFL the look like America you have too many African. American players. That's not right. That's obviously there's obviously systemic racism in sports after all why else would there be seventy percent of the players black I mean it can't be for a logical reason it. If there's a disparity, it must be the result of systemic racism. So yeah, we need to make the NFL look like America, where are the female players? You know the transgender players why aren't there any older players I mean there's age discrimination going on why are there no people in their fifties and sixties? What about what about? People in with handicaps what do we have any handicap players there obviously discriminating against the disabled right I mean you can make these arguments, but it's amazing that they want to say that the NFL is racist because we only have ten percent of the head coaches are are black. The skillset. Is completely different. What it takes to be a good coach is not necessarily what it takes to be a good. Player on the field. Right there's different skill sets, different abilities, and you know even though seventy percent of the professional football players are black. It's a smaller percentage in in in college I think you go division one yeah. You got maybe fifty five percent of the Division One players are black but as you go to division two division three. You have more and more white players more and more Hispanic players early on high school, Right. So a lot of these guys who become coaches. They didn't play in the NFL. They weren't good enough to make it to the NFL some of them did but a lot of them you know played in college and then they went onto coaching. To the NFL or they played in high school. And a lot of these coaches they they work their way up they could start in high school then they can go to college and they're you know they worked their way up the ranks. But to say that the fact that only ten percent of the coaches are black that's somehow prove that the owners are racists. How is that possible? How can they not be racist when it comes to hiring players but they're racist when it comes to hiring coaches. The fact that there are seventy percent. Black players. Proves that they're not racist. See the coaches want to win I mean is it possible that there's an owner and NFL owner who is a racist shirt? It's possible. But what the owner of an NFL team cares more about than their racism is winning they WanNa make money and you make more money when you have a winning team. The better your record, the fans like going to games where the home team is winning right. You can sell more merchandise. When you have a good team, you get better TV spots you get more money hey, you might make it into the play offs get even more money right? These are big expensive teams and these guys got big egos right? You've got some very, very rich owners right and what do they do WanNa do they wanNA, win they wanNA beat the rich owners on the feel. This is their own version of war, right? So they don't care what color these players are they want to win. And the same thing with coaches they wanNA hire the best players for the job and it just so happens that seventy percent of them are black right it. You know it's a fair competition, right? The reason that blacks are winning these positions is because they're better than the players that they beat of whatever ethnicity they happened to be. The same applies to coaching these NFL owners are looking to hire the best coach possible and they're looking at all the coaches and they're looking at their track records and where they coach in the past and. What kind of success they've had they're trying to find a coach debts going to enable the team to win right they just spent all this money hiring all these expensive athletes. They're not gonNA blow the whole thing by hiring a second coach just because he's white, they're not gonNA pass up this great coach who happens to be black and say now you know I'm going to hire you you're black I mean I'm fine hiring black players but come draw the line coaching that is a bunch of nonsense right what what it really proves is. You can succeed if you're black as long as you're good right that's how you make it to the top and the same thing would be true in every occupation and in every profession, people always want to hire the best right. Are there some people who are racist? Yes sure. There's not that many though there you know percentage wise. But even if they are, they're going to keep quiet keep that to themselves if it costs the money right when the government comes in with the anti-discrimination laws and takes away the financial penalty for being A. Racist well, then they incentivize racism, but in a free market, then racism is a radical on its own. You know it's unfortunate because all these players now want to get together and demand that we put an end to racism and we can't do that. There's going to be racist and society. What we want is to minimize the damage that racism does but government not only does it minimize it maximizes it and the problems that are plaguing the African American community that a lot of these players are rightfully concerned about I'm not saying they're wrong. To be upset about what's happening in African American communities. It's a disaster what's happening it's a disgrace. We need to do something about it, but it's not because of racism. And all this black lives matter you know like Oh, the problem that young black men have is they're getting gunned down by white racist cops that is a bunch of nonsense. Yes. There are a lot of young black men who are getting gunned down, but they're being gunned down by other young black men that is the reality. In fact, if you look at the leading cause of death for young black males in America and these are eighteen to forty in this area is homicide. Right, more young blacks are killed by other people than are killed by themselves. Then commit suicide or who die in accidents right because when you're young right, that's how you die I mean you know you're you're not dying of disease generally because the diseases don't start hitting you until you're older. So if you're a teenager, you're in your twenties and you die an accident you know suicide is is usually the top causes but for young black males, it's murder for young white males. It's much different. I. Think it's like thirty two percent about of. The young black males who die it's a death by homicide when it comes to white males now you're three or four percent. So a much lower percentage. So for young white men getting far more likely to kill yourself. Drug overdose whatever it is or you die in an accident confident or some type of you know other event that happens and you end up dying. But for young black males, it's being murdered by other young black males at of course when you look at women than you know the numbers tank, right? So the problem isn't. For Black Women, it's the males and that's where. The problem is, but it's not because of racism blacks aren't killing other blacks because of races. But one of the reasons they are is because of the war on drugs. So. Why aren't these athletes demanding an end of the war on drugs if they really care about what's happening in the inner cities and all the violence how about ending the war on drugs 'cause drugs are winning. People are dying look at all the the overdose deaths reality is that's what killed Jordan Floyd they should be worried about all the drugs droid floyd was was taking and the fact that he oh, deed on drugs right? Not about the the policemen but they're not gonNA talk about that. They're not going to talk about the failed welfare state right? They're not going to talk about all these young black males growing up without fathers. Hey, why is that? Maybe this is one reason that they all turned. The grime is because they don't have a father figure in the House and why is that once upon a time before the welfare state? Black, children were more likely to grow up in intact families than white children had very strong families before the government welfare system destroyed the black family, and now you have all these out of wedlock births and you have all these young black males growing up and they go to crime, and of course, we glamorize and glorify crime with the war on drugs by creating so much prophets for the people that go into drugs, and then of course, we build all these roadblocks for all legitimate avenues we build in a minimum wage law build an occupational licensing laws. We make it so much harder for young black males to gain legitimate employment we kind of. Steer corral them into into drugs. I mean we shut down all their other avenues and they're only one that's left is drugs, and of course, they see their friends, the ones that are dealing drugs they have all the fancy cars they get the prettier girls and then we have the rap music or is it I mean that's not what these guys are are criticizing there is so much they do what about the failed public schools what about what we're doing to? Our African American kids in these horrible government schools that they're trapped and why aren't they ask you for Voucher System Right? Why don't they are demanding that? We actually do something to help these kids get real education's not being indoctrinated by these bureaucrats. Let them actually learn something and you know how `bout more on the job training more apprenticeship get rid of all these laws, minimum wage laws again or other laws that make it too expensive to hire these unskilled young men. And learn them teach them some job skills let them on the job. Let them let them climb up the ladder? No no we destroyed all the bottom rungs on that job ladder. They have no chance of climbing on. The only job they're going to get is is in drugs so they can be doing so much good. These are. Athletes. That are high profile guys well respected in these communities idolized. Them their role models and they want to pretend that all these problems are the result of racism. That's an excuse. That's the one way to make sure that the problems were never solved. If you just blame everything on raises them and just accept the fact that you're a victim. Well okay. Well, there's always going to be racism. So you're always GONNA be victim instead of taking. Responsibility for yourself and realizing yeah, there might be some racism out there but damage to overcome that I'm just going to work twice as hard. I'm going to overcome those stereotypes and use that to your advantage right a- and these guys could be doing that they could really be making a difference and it's so so frustrating to see them squander that opportunity just because it's easy, right? They're taking the easy way right? It looks really good Greg because these guys are making a ton of money. And I think it's so interesting that they want their owners suspend all this money. Well, how about it? They cut your salaries right that you guys got plenty of money spend that right on and you can use that to to cover reparations obviously slavery didn't hurt you guys. But. The easiest thing to do to make their fans think they care is to just stand with unity and just by this narrative hook line and sinker oh. Yeah. We stand with you. It's Sola Darren how show some guts right and actually stand up to the false narrative and try to make a real positive difference by educating some of these people to understand the truth and accept the truth along with personal responsibility and all these leaders right politicians in and the race baiters the poverty pimps, you know, shine a spotlight on them. They have that opportunity but no, they blow it because it's more convenient. It's easier to be liked if you just take the low road and just pretend you care so much about all these injustices by standing together in the middle of a feel and holding hands.