Jason Hartman takes a look at the North Pole economy the North Pole. Jason ends with a discussion on Florida’s population growth.


Investor Testimonial 00:00
Basically found creating wealth podcast by searching iTunes in immediately resonated with your message, you know, the great returning investment, significant, significant reduction in taxes, steady income that could eventually replace my corporate job income. Also, what I found very powerful is along with that message, I was impressed by the high caliber of your guests. And I remember listening to economist investors, lawyers, authors, basically people who could present their expertise and allow me to judge their response against your message. So as an example, when you talk about inflation, your your your ideas about inflation going up over the next few years, I could vet that message against your guests and in be sure that what you were saying made sense. So that was very powerful to me.

Introduction Speaker 00:53
Welcome to the creating wealth show with Jason Hartman. You’re about to learn a new slant on investing some exciting techniques and fresh new approaches to the world’s most historically proven asset class that will enable you to create more wealth and freedom than you ever thought possible. Jason is a genuine self made multi millionaire who’s actually been there and done it. He’s a successful investor, lender, developer and entrepreneur who’s owned properties in 11 states had hundreds of tenants and been involved in thousands of real estate transactions. This program will help you follow in Jason’s footsteps on the road to your financial independence day. You really can do it. And now here’s your host, Jason Hartman with the complete solution for real estate investors.

Jason Hartman 01:43
Welcome to Episode 1355 1355. Today on Christmas Day, we are recording you’ll hear this The day after Christmas. And as promised, we wanted to talk a little bit about a very unusual economy. That is the economy of the North Pole. Yes, it is Christmas Day. So it’s an appropriate topic. And we did promise it to you. I found a very interesting study done by our friends at economics explained. They’ve got a great YouTube channel. And I’ll be playing a clip or two from one of their videos, which I thought explained it very well. And you know, we commonly talk about economics, we talk about trade negotiations, the lamestream Media calls them trade wars, I call them trade negotiations, because that’s what they really are. When you look at what’s called the current account balance, that is the metric or barometer by which trade is judged between countries. So if one country has a current account deficit, and one has a surplus, that means the one with the deficit is importing more and exporting less. And of course, countries engage in these currency manipulations which Trump has accused China of doing to increase their exports. Because the cheaper you make your currency, the weaker you make your currency, the stronger your export market. Think about it. If people can buy goods from China that has a very weak currency, if they can weaken their currency on purpose, of course, that hurts their citizens at home, but it helps their businesses at home, because their businesses will have products that look like bargains to the rest of the world. If the rest of the world in relation and it’s all relative, has stronger currency. So if the dollar is strong, and the one is weak, or the renminbi, then you have a bargain in China, and everything’s too expensive for China to want to export from the US, right or import from the US, I should say. So when we look at that, and we talk about trade, there’s an interesting economic region in the north pole that you probably haven’t thought much about. We certainly haven’t talked about it on any other shows before. And we’re going to talk about that for a few minutes. And then time permitting, we will get to a little bit of a market profile that I think you’ll find interesting as well. I’ve got my mom here with me, mom say hello. Hi. Merry

Joyce 04:15
Christmas, everyone.

Jason Hartman 04:16
You’ve been while we said that the other day you were looking at properties. You had a three day property tour. You didn’t say much about it, though. Last time. Do you have anything more now? Maybe? Give me a chance. Maybe cuz you’re not so tired. It was late when we did that one.

Joyce 04:29
Well, I looked at two properties in Palm Coast and our Palm Bay, Florida. Point seanna paka. And just the general area of Kissimmee, it was very interesting. It seems to sell those properties have gotten more expensive year by year. And I wish I had been buying them in 2009. Of course we all wish we had.

Jason Hartman 04:53
Yes, yes, we sure to and by the way, speaking of which, next week, I hope we’re going to get to a decade in review. And those of you who’ve been investing with us for the past decade have done very, very well. So congratulations to all our listeners and clients who have been investing with us for the past decade because you’ve made a fortune. Congratulations. What a difference a decade makes. It’s for sure, mom. So let’s play a little clip of this, and then we’ll go from there.

Narrator 05:22
Almost all the North poles economy depends on international trade it exports in consumer goods and fossil fuel and import in dairy products and confectionery, but it has no trade agreement, meaning the conducting this business in any kind of competitive manner would be incredibly hard. Fortunately for the North Pole, they have found an ingenious way around this whole problem. What they do is call their export gifts that are addressed to non taxpaying residents. In most nations on Earth, there are allowances for imports that are intended as gifts without being exchange for currency. What this is intended to do is avoid a lot of unnecessary paperwork for people who are sending things to friends or family overseas, it doesn’t seem sensible that you should have to pay you an import tariff on a postcard when you send it to your RT from Europe. And so there are concessions within reason for gifts. Similarly, for the North Paul’s primary import market, the products are classed as religious offerings. Well, this is a legitimate classification of their export business or if this is an example of the North Pole skirting international trade laws and dozens of countries. It is not an argument that I want to get into in this video. But what it does do is beg the question though, how does the North Pole generate revenue from these exports?

Jason Hartman 06:36
So that’s the current account of the North plummeted press

Narrator 06:39
releases the chairman and CEO of the North Pole economic region, Nicholas Claus insisted that the primary driver of their exports was foreign aid directed at the good children of the world. Skeptics have noted that if this was purely virtuous foreign aid, and this would represent a foreign aid budget many times larger than even the most influential nation economies in the world, the most generous country in terms of foreign aid in the world today is China, which provided over $60 billion worth of foreign aid to over 140 nations in 2018. Now these donations mainly took the form of development projects that would provide a boost to developing countries economies, but would also serve to secure Chinese influence in up and coming markets throughout the world. So while on the surface, it seems lovely and fluffy and charitable, there is real hardcore geopolitics influencing these philanthropy. The North Pole does not release national budget and so its foreign aid budget is a little bit harder to determine, but it can be reverse engineered. Curiously, the North Pole provides foreign aid almost exclusively towards children’s initiatives. And more specifically, it is directed towards individual children that believe in the fundamental ideologies of the North Pole, and it’s later this selective aid has caused controversy, but at the end of the day, it is their budget to do with what they please but this selectiveness does make it easy to estimate their budget. There are 2.2 billion children in The world as of 2019, of which 1.2 billion recognize the North Pole and its leader, a Gallup poll noted that the average car between over 50 countries receive gifts worth 70 US dollars. What this would mean is that the North poles foreign aid budget is roughly 84 billion US dollars annually.

Jason Hartman 08:16
Did you catch that? That is a huge budget coming from an economic region that you probably haven’t even thought much about. So what did they say, exporting? About $70 on average, to I think, 2.2 billion kids, something like that. That is a giant foreign aid project. So you know, you gotta hand it to the North Pole for doing that.

Thank goodness for kids.

Narrator 08:43
Yeah, handily beating out China, the second largest economy in the world, the dairy and confectionery imports overseas as offerings are not enough to support this spending. And the country also has no sovereign bonds listed anywhere on any exchanges to fund this three debt.

Jason Hartman 08:58
So they’re not issued Debt like US Treasury bills, for example, or any sort of bonds that are listed on a any exchange, and they’re only taking in dairy and confectionery products. So the current account picture of this region is totally lopsided. So it becomes a really fascinating study and economics. Let’s keep listening.

Narrator 09:22
Of these, its domestic consumer market is very small on account, the majority of its workforce been comprised of unpaid manufacturing interns, which work under the North Paul’s employment for low fair skin.

Jason Hartman 09:34
So So under the employment for low fare scheme, the elf scheme, these workers are very inexpensive. And when you think like when I was talking the other day, we did that show about Africa in the amazing potential opportunities there. And I talked about how Nixon opened up China and I believe he foresaw massive inflation that would hit the us if we couldn’t find cheap labor. abroad. And that’s, I believe, was at least one of his reasons for his historic trip to China. And now people are looking at that as a possible as wages in China go up as Africa as a possible opportunity for inexpensive labor as well. And I talked also about importing labor by having this sort of open border policy that we’ve had, and getting immigrants to come in to the US mostly illegally, of course, and this is a hot topic of debate. But again, that is inexpensive labor that if it did not come in, would have caused inflation would have caused a lot more inflation in the system. So at the same time, you have the government spending your responsibly printing money irresponsibly, you outsource to mainly China for cheap goods that you can import, right, China’s the workshop of the world. And then you have low cost. immigrant workers come in, and that’s a good reason. In if you’re in office, not to protect the borders, because if you did protect the borders and really control them, then wages would go up significantly. And everything would get more expensive. And it would show the real rate of inflation. talked about this in the past. I alluded to it the other day on the episode about Africa, but also with the North poles, elf program, it’s pretty interesting as well.

Narrator 11:27
question remains, how does the North Pole a relatively small economy afford to export these toys every year?

Jason Hartman 11:35
So big data is one of the ways that the North Pole has become very successful in this region. And of course, you know, data I mean, we hear about Facebook and Google and all these tech companies and their abuse of data. Well, this region has quite a database as you’re about to learn.

Narrator 11:54
Facebook is one of the world’s largest companies. He generated revenues of over $55.8 billion 2018 while offering a majority of its services completely free for over 2.4 billion users, the reason that Facebook was able to simulate make money out of nothing was because of the way it commodifies eats data. Facebook develops algorithms that will look at a selection of data points like your friends likes, checking locations and post to determine what kind of person you are. It can then use this to improve its services recommend new friends you a no show you content that you will find interesting and most importantly, deliver you advertisements that you will find engaging

Jason Hartman 12:33
a target. So of course, you know when the product is free if Gmail is free, if Google products are free, Facebook is free. whenever it’s free, you know that you are the product. Okay? You are the currency you are paying with your information. That’s how you’re paying for it.

Narrator 12:53
advertising campaign is far more effective than indiscriminant. One because companies can be sure that they are approaching the right audience in the right way. To build the most possible interest and their products. Because of this, companies are willing to pay a lot of money to access this data. Now, while Facebook’s database on user profiles is extremely impressive as a data source, it is nothing on the scale of Sanders list a repository of all known knowledge on the action of miners in the world. Its quality assurance protocols of simply checking list twice probably leave a lot to be desired from a database management point of view, but it is still a very powerful source of data. Now the North Pole economic region insists that user data collected on Santas list is purely used to facilitate the services that the North Pole provides to naughty or nice users and it is used to determine the allocation of consumer goods or natural resource. Critics have noted that such a data source could produce the billions in revenue that the North Pole seemingly lives on at the end of every year.

Jason Hartman 13:51
So a few final thoughts and we’ll wrap this up.

Narrator 13:55
The North Pole special economic zone is truly an interesting case study and how one micro nation can buy facilitate and leave awkward interactions with the nations that support it. It is very hard to speculate about the future of the economy. It was obviously one of the first major industrialized zones in the world that has since been able to produce output from their workshops on a consistently huge scale. But it is still subject to many loopholes. And if major political figures are to be believed, the very foundation of the North Pole is under attack. So Could this be another manufacturing economy destined for great stagnation? Well, no. In reality, the North Pole has a lot of things right. It is stable, consistent, diverse, and people have a lot of confidence in it.

Jason Hartman 14:39
Anyway, I won’t continue playing. You’ve got to see the video, we’ll put the link in the show notes. It’s quite fascinating to study the North Pole as an economic region. Given the holidays. I thought it was very fitting to bring that to you at this time. Okay, so switching gears here, let’s talk about a warmer Economic region. And that is my home state as of over just over a year and a half ago. And that is, of course, Florida, where I am right now. Mom and I are just about to leave for dinner. It is truly amazing what is happening in Florida, and how it just reminds me so much of Texas several years ago, and it’s Texas is still booming. Don’t get me wrong. I mean, it Yeah, everything is still happening there. But Florida seems to have caught fire, if you will. So let me just share a clip from an ABC News affiliate. And it’s a really short clip just about Florida in migration in migration, and what it means for the economy.

ABC News Affiliate 15:44
We should wave hitting Florida tonight, new numbers dropping today and just how much the Sunshine State is expected to grow in the next few years. And the projections are nothing short of staggering. ABC ACTION NEWS REPORTER Sarah Hollenbeck with a story

Sarah Hollenbeck 16:00
bumper to bumper

Sarah Hollenbeck 16:01
just saw Ron crowded cars crawling

Sarah Hollenbeck 16:05
Tinder The streets are already congested and about to get busier, we always say Welcome to the Jungle. Every year more than 330,000 people are moving to Florida according to state economists. That’s like adding a city slightly larger than Orlando to our state year after year.

Jason Hartman 16:25
Did you catch that? It’s like adding a whole city every year. Okay, in terms of that in migration, over 900 people per day, Porres.

Sarah Hollenbeck 16:39
Yay, Michelle Hartman and her husband are among our state’s newest residents moving from Pennsylvania to Clearwater. She’s already noticed the traffic that is harmful in our local counties are preparing for the massive influx

Jason Hartman 16:54
and drivers putting in better time traffic signals so that we can move traffic

Sarah Hollenbeck 16:58
better projects in the works adding new overpasses, longer term lanes, replacing aging bridges and brainstorming transit options on major corridors like us 19. But it’ll cost us in Pinellas County alone, a whopping 390 $2 million over the next 25 years, we’re probably going to need to look at some form of gas tax or sales tax their price to pay for living in paradise Tampa Bay now the ninth most popular place to move in the entire nation.

Sarah Hollenbeck 17:29
It could get very hectic very fast

Sarah Hollenbeck 17:31
ended Ellis county Sarah Hollenbeck ABC Action News.

Jason Hartman 17:34
So a lot of you people listening purchased from our local market specialists in outlying Tampa area because right in Tampa, you can’t make anything work. It’s just too expensive. You got properties in maybe the port, Richey area or some of the other areas. And of course, we have properties in Orlando, Jacksonville, short term rental, more expensive properties in St. Augustine. Several other markets. You know, we had the property tour before profits in paradise in Ocala. So we have many, many Florida markets for you, of course, add Jason hartman.com, click on the properties section and check them out there. Of course, contact one of our investment counselors make sure you’re working with them because the properties are going fast. But Florida is hot. And we have many other hot markets around the country. You know, Indianapolis, our longest running market, I’ve been doing business in Indianapolis for almost 15 years. Now, if you can believe that. I can’t believe it. Even It’s been a long, long time in that market. Of course, Memphis has perennial interest for investors in Atlanta, we’ve got some great new home properties in Atlanta. Just a lot of good opportunities out there and many other markets that I did not mention. So Jason Hartman, calm make sure you connect with one of our investment counselors through any of the web forms, you can inquire on our website. site and until tomorrow. Merry Christmas. We will be back tomorrow with another episode. Happy investing. Thank you so much for listening. Please be sure to subscribe so that you don’t miss any episodes. Be sure to check out the show’s specific website and our general website Hartman Mediacom for appropriate disclaimers and Terms of Service. Remember that guest opinions are their own. And if you require specific legal or tax advice, or advice and any other specialized area, please consult an appropriate professional. And we also very much appreciate you reviewing the show. Please go to iTunes or Stitcher Radio or whatever platform you’re using and write a review for the show we would very much appreciate that. And be sure to make it official and subscribe so you do not miss any episodes. We look forward to seeing you on the next episode.