Jason discusses the big news of the Federal Reserve and what it means on interest rates, housing, and inflation. In the interview segment of the show, he hosts a former senior credit officer for two California banks, and editor and publisher of The Strategic Financial Intelligence monthly newsletter, John Truman Wolfe. They discuss the economy and the coming financial crisis. Wolfe gives us insight into bubbles and what will happen. Then they discuss banking worldwide. They end with thoughts on a global digital currency.
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 on now. here’s your host, Jason Hartman with the complete solution for real estate investors.
Jason Hartman 0:54
Welcome to Episode 1538 1538 as I was saying yesterday, dear listeners, we need more time together. We don’t spend enough time together. There’s just so much going on in the world that I don’t get to share with you. And every morning as I am doing my reading and my research and I don’t just do it in the morning, but I specifically do it in the morning, as much as possible. There are just so many things I want to share with you. And I don’t get time. There’s always a lag of things that we don’t share. So, speaking of which, for those of you who have been so patiently and so anxiously awaiting the recordings of meet the Masters, they have arrived, check your email box today. You got an email explaining how to get to them. They’re beautifully organized videos. They’re beautifully downloadable audio files. And so you can be portable, you know, we don’t have to do it well But we like to do it well. Although Looking back, I think the wait may not have been worth it. I think it’ll be worth it to you. But I don’t know if it was worth it to us, because I know you’ve been asking about it. And for those of you who attended as a thank you for your patience, we offered you a special discount on the empowered investor inner circle in that email. So if you didn’t join at the time, we extended that discount because you waited so long for the recordings. And I know many of you who were not able to attend have asked about the recordings, we will make those available to you and they should be available next week. We’re just working on the page so you can get them and there are four small recordings missing. That will be uploaded, I believe tomorrow to the portal and they are just the introductions for each day. So they’re not a big deal, but they will be there. And so thank you for waiting for those. We do have a lot to talk to you about and by the way, meet the Masters via VIP ticket holders, we have your second VIP session this evening on zoom. So we look forward to seeing you there. And you received an email and a text message about that with the link for this evening’s meeting. Okay, so big news, big, big news, ladies and gentlemen, from our central bank, the Federal Reserve, you may have read about this two day it was in the Wall Street Journal, and it may not have seemed like a big deal. But it’s a big deal. It’s a big deal. Why is it a big deal? Well, you know that over the years I have taught you about the Phillips Curve, right, the Phillips curve is is that rather important thing that guides a lot of decisions in monetary policy. And of course, monetary policy is not to be confused with fiscal policy. Okay. So the difference of course, is that monetary policy is what comes from the Central Bank and fiscal policy is what comes from? Well, the government, but more specifically Congress and even more specifically than that, the House Ways and Means Committee. So, fiscal and monetary policy, they go hand in hand, but they also have their definite differences. And in the fiscal policy realm, the Fed has made a statement, and this is a big deal. In fact, Evan posted this in our internal content group, and it says the new statement approved Thursday said decisions to raise interest rates would be guided by shortfalls of employment from its maximum level. So what does that mean? Well, they have a target, employment rate or unemployment rate depending on how you look at it is the glass half full half empty, doesn’t matter, right? It’s the same thing. You know, people talk about the vacancy rate when it comes to their properties. But they also talk about the occupancy rate. It’s just the flip side of the other. The other item, obviously, well, well, well, they have the target unemployment rate. And really, most economists would say that when the unemployment rate is around 3%, they would just consider that to be essentially zero unemployment. In other words, that is full employment in their eyes, because some folks just don’t want a job and gonna get one, no matter how much incentive you give them. Those darn slackers, you know, they want to sit on the couch and watch daytime TV and, and eat Cheetos and full employment, right. You got to consider full employment at a certain rate and usually they’ll say maybe three things Three and a half percent will be full employment. So just Consider it done. Everybody’s working at that stage. And then, of course, they have long said that the target inflation rate is how much? You know the answer, because you listen to the show, that is 2%. And of course, that is by their numbers, and that is always understated, always understated. So this goes on to say, in other words, the Fed has signaled that it wouldn’t raise interest rates simply on the basis of a forecast, a forecast, in other words, a prediction, a projection, a view of the future. Let’s make sure we notice that word. But on the basis it so it wouldn’t raise interest rates simply on the basis of a forecast that inflation will rise, but instead would wait To see evidence that inflation was at the central bank’s 2% target. Why is this a big deal? Well, let me just tell you why. Because usually, well first off, we need to understand Of course there is a lag time in fiscal policy and monetary policy and the Fed is attempting the central planners at the Fed. They are attempting to steer the ship. Look at it like a giant cruise ship. Or better yet look at it like a giant oil tanker. A really big ship. Okay, a maybe a container ship. I think an oil tanker. I think the biggest ship in the world is probably an oil tanker but I’m not sure about that. Probably is anyway, a giant ship. Well guess what happens with a giant ship. I I bet most of you have never captained one of those but maybe some of you have And but you can just know even though you haven’t had the experience, personally, that a big ship, once it’s underway, it takes an awfully long time to turn that sucker around. So you have to make decisions in advance, you have to forecast things and say, hey, there’s an obstacle, way ahead in the distance that we see on the radar. Maybe we can’t even see it with a naked eye, or we see it with the binoculars. Maybe it’s not an obstacle, maybe it’s a weather, you know, a weather event, a storm or whatever. We better start turning the ship now, because it takes a long time to change course and this big giant ship. And that’s what the economy is. It’s a big giant ship, that you have to make a forecast in order to adjust it. But now the Fed is saying We’re not going to go by a forecast anymore. We’re gonna look at hard evidence that we’re already there. So in other words, we’re gonna say, Hey, we’re already in the thick of the weather system. You know, we’re already in the thick of the hurricane. And, you know, now we’re going to start changing course. We’re already here and these waves are battering the ship. I don’t know, folks, this is a big deal. So it basically signaled that the Fed intends to keep interest rates low, which I know what you’re thinking investors, you’re thinking, well, that’s good. There’s not so much urgency but guess what? home sales were up about 25% last month in little Dory is like non existent. I went to one of the markets on our website today. And I always saw One property. Ah, I want more properties and you want more properties. What did I read you yesterday a study that said home prices were up in one month, in one month, the month of July, they were up 4.3%. The day before I shared with you about how lumber prices cause the average price of a new construction home to go up by over $14,000. This is what happens when you have these artificially low interest rates. So it’s not really such a blessing. And now the Fed has said look, we’re not going to steer the ship in advance. We’re going to wait till the we’re in the thick of it. And that means we are worried about inflation. That’s what our rich uncle Jerome Powell was telling us. I don’t know if that’s very wise folks. Don’t think it’s very prudent. But hey, I don’t run the Fed, unfortunately. Because if I did, interest rates would be significantly higher, and the economy would be significantly more rational. As, as our good friend George gammon says, and I’m interviewing him for an episode tomorrow, and you’ll probably hear that episode next week, how to survive in an era of out of control central banks. And that’s what we have. And this is another example. All right, take it for what it’s worth. Okay, so, our guest today will be talking about financial crisis ahead. And I don’t really agree with all of this stuff, but I agree with some of it. So we’ll listen to him and we’ll let him say his piece. And it’s always interesting to listen to. Sometimes when I’m doing this show, and I’m reporting on things and, and some articles from for example, the website, Zero Hedge many of you read Zero Hedge I’m sure. It’s interesting to say, to say the least. I like their content. I think it’s quite interesting. They model it after Fight Club, which is an excellent movie, if you can get past the violence and the crudeness. It really is quite a meaningful movie. I think I’ve watched it two or three times now. And you know, that’s with Brad Pitt, of course. Right. And it’s an that’s an interesting movie. It teaches you a lot about finance and debt. The great reset that might be coming the debt Jubilee that might be coming, they had another way of trying to get there. It’s interesting movie. But hey, Tyler Durden. The quote unquote writer, for zero edge is a fight club character. As you may recall, if you’ve seen the movie or read the book, by the way, did you know that the rights to that book were sold for $10,000 and it was this hugely successful movie? Oh, boy. I bet that author is really regretting that decision to sell those rights so inexpensively Hmm. Bye. Zero Hedge and many others have been predicting the end of the world forever. And guess what? It hasn’t happened. In fact, just the opposite has happened. People have made fortunes in the midst of Peter Schiff. And Tyler Durden in Zero Hedge predicting the end of the world forever. And all the people getting ready for that have pretty much missed out. So you got to take all this this stuff for what it’s worth. So and by the way, I’m going to invite Peter Peter Schiff back on the show. It’s been a long time since he’s been on. So we will get Peter back on the show here very soon. Can’t wait to hear what he’s gonna say, Wait, the world is coming to an end. Gold is gonna be $5 million an ounce. Hey, if senile Joe Biden wins, he could be right. We’ll see. You know, eventually he’s going to be right. Eventually all these people are gonna be right. The only question is, how long will it take? But I do think they’ll be right eventually. All right. Without further ado, let’s get to our guests. And as I always say, if you need us reach out Jason hartman.com or in the US call us on the good old fashioned telephone at one 800 Hartman, here we go. It’s my pleasure to welcome john truland. Wolf. He is the Creator and author of the award winning Tom McKenna Private Eye series. He’s a former senior credit officer for two California banks. He’s editor and publisher of the strategic Financial Intelligence monthly newsletter, and author of several books including the best selling the coming financial crisis to look behind the wizards curtain and crisis by Design The Untold Story of the global financial coup and what you can do about it. JOHN, welcome. How are you?
John Truman Wolfe 14:53
I’m great. Thanks very much.
Jason Hartman 14:55
Good to have you. And where are you located?
John Truman Wolfe 14:57
I’m in the mountains north of water. Angeles about an hour north of La in a in the mountains in the Los padres National Forest.
Jason Hartman 15:06
Fantastic. Well, I grew up in the Socialist Republic of California and I got out moved to Florida for no income taxes. So what do you know?
John Truman Wolfe 15:16
So have a lot of my friends.
Jason Hartman 15:18
Yeah. You talk a lot about, you know, the derivatives bubble. And I’m not sure I’m characterizing that the way you say it, but you talk about derivatives. And we’ve discussed that on the show over the years. I, I love to call derivatives. Very simply the thing about the thing very simple simpleton term. You know, how big of a concern is this? I know the numbers are absolutely enormous. And when you look at the size of the derivatives market, and what will happen when this eventually starts to implode, or Willingham doesn’t ever have to implode, what are your thoughts?
John Truman Wolfe 15:58
Well, I think you There’s a statement that did that you mentioned earlier, all bubbles do do break this sub bubble and these numbers are huge. They’re mind numbing 1.2 quadrillion dollars worth of derivatives on the planet. The major New York banks have 220 7 trillion with a T dollars worth of derivatives and there is a point where you go, Well, there’s, you know, Counterparty one person, one’s one person loses. And about 75% of the derivatives on the market are basically bets on the direction of interest rates. So what percentage is on interest rate bits, about 75% at various,
Jason Hartman 16:40
three quarters of the derivatives market as interest rate oriented derivatives got exactly
John Truman Wolfe 16:44
correct. And we can get into what the Fed may or may not do with interest rates. They’ve said they’re going to keep them essentially at zero until 2022. Maybe they’ll do that. Maybe not. But sooner or later, you know, I think this thing will go awry. And It’s all fine if everybody’s financially healthy. But you have, you know, JP Morgan Chase has got over $50 trillion worth of derivatives exposure. And the other big banks in New York money center banks, you know, be have a Citibank wells, banks of that nature have got trillions and trillions of dollars worth. And if the interest rates if slash when the interest rate, bubble breaks, and a bank can’t honor its obligations, all you’ll need is one incident like that. And I don’t like to be the beginner of the bear pessimistic good news. But if one of those big banks takes a huge derivative hit, I think we’re looking into financial crisis. Jason.
Jason Hartman 17:47
So do you think the powers that be the central banks and governments around the world would allow that to happen? I mean, it’s kind of ridiculous that now I actually I can’t believe I’m saying this, but I think we can literally hang our hats on the fact that they’re going to rescue us with more QE and fake money printing. And I mean, it’s just a new world we live in, you know, I don’t think that the public will tolerate any sort of, you know, serious pain.
John Truman Wolfe 18:22
Well, that. Well, it’s it’s a good question. I mean, the protection mechanism that the Bank for International Settlements has put in place and for your listeners that aren’t familiar with that bank, and maybe people are not the Bank for International Settlements. I referred to as the godfather of the financial global financial mafia. This is the central bankers central bank. It’s in Basel, Switzerland. They basically call the shots. A couple of years ago, they implemented a policy globally called Balan policy. Balan policy. says, if a bank is failing, then that bank has the right to take depositors currency deposits and convert it to bank stock without any permission whatsoever.
Jason Hartman 19:12
It’s kind of a Cyprus esque sort of thing, isn’t it?
John Truman Wolfe 19:16
It that’s exactly what it is in Cyprus was the test case for the BI s implementing this policy. They did it in Cyprus, there was a good deal of press from this little offshore bank, which held the deposits of a lot of ex KGB characters. And that incident was the pilot for bailing policy around the world there are now bailing policies mandated in Europe by the President of the European Central Bank, Canada implemented it. And there’s actually a document focusing go online and look at it
Jason Hartman 19:50
written by jointly by the FDIC in the Bank of England. That explains how by lm policy will work here, and by the way, we should just give our listeners A little backdrop for that, john. So, you know, back maybe what, 810 years ago, if you went to sleep, and you you were a Cypriot citizen, and you woke up and check your bank balance, again, you would have less money. Right? They literally just took your money. No,
John Truman Wolfe 20:17
that’s exactly right. And that’s what baling policy, you know, can do. They just, you know, they took a certain percentage of the deposits and converted it to bank stock. Well, you know, I mean, who wants to stock in a failing bank? Yeah, maybe somebody but not the average Joe,
Jason Hartman 20:35
especially when you didn’t want to be a shareholder. You didn’t agree to become a shareholder, you just were essentially forced. It’s like, here’s the gun to your head, buy our stock with your deposit money. Exactly. Right. Okay, go ahead.
John Truman Wolfe 20:50
So the BI the Bank for International Settlements implemented this policy because they saw what we were talking about, that the derivatives the interest rate, Rate sensitive derivatives had gotten so huge. That bailing policy basically protects the banks. So if you know the derivative bubble breaks in a particular bank, that bank has the right now, under B is policy. And in the US, Dodd, the Dodd Frank bill legalized that in the United States, they can come in and take a certain percentage of your deposits.
Jason Hartman 21:27
Yeah. Right. So so that was really in the in the what, 2300 or so pages of Dodd Frank, this extremely confusing. Well, aren’t they all confusing, Bill? That was stuck in there too, huh? No, nobody was talking about that. Unbelievable. Yeah. So we’ve got Dodd Frank. So do you think that would be a amount over the 250,000 FDIC limit or any amount or silver good question the memo that the FDIC and the Bank of England jointly wrote, does not mention FDIC insurance. There is, you know, online traffic where it appears that the FDIC insurance would not apply. But I’ve contacted the FDIC, they’re non committal on the subject. So I actually don’t know what would happen. I think it would depend on how big the crisis became. Yeah, and the FDIC certainly doesn’t have anywhere near enough to cover a real crisis by any means. But my contention is that government will just fill the void with fiat money. So what should we do with this information? I mean, you know, for those people who have extra cash that’s not in the stock market. It’s not in real estate, where which is where it should be. It should be an income property. I say, what should they do? I mean, you know what banks are safe. Do you go with the big banks, or do you go with the most financially sound banks, the theory being the big banks are going to get bailed out, even if they’re not doing financially sound. But but the banks aren’t really as they’re not as reckless as they were before the Great Recession or I write things are things are better for the banks now at least that’s what people say,
John Truman Wolfe 23:13
Well, again, I think what puts the banks at risk is the amount of derivatives the big banks. Now to answer your question, which is a really good one is this bailing policy applies to banks with assets in excess of $50 billion. So I encourage folks, you know, if you’ve got money in one of the big money center banks, if that’s a you know, the household the budget money, okay, it’s a few bucks, but open your major accounts in a regional bank, a smaller regional bank, a bank with assets under 50 billion, because as it stands now, bailing policy applies only to banks of 50 billion and larger,
Jason Hartman 23:58
right so the point problem with that is that the small banks may not be able to withstand a crisis, but at least you won’t have a bail in recce risk. Right. So it’s like you’re damned if you do damned if you don’t maybe, huh.
John Truman Wolfe 24:12
At least they’re not gonna come and take your your deposits in the middle of the night without your permission.
Jason Hartman 24:18
Right, right. But they might fail. That’s that’s the thing. So then you have to get into really, really doing something Americans just aren’t used to doing at least not since the you know, before before during the Great Depression is understanding how sound your bank is, and and then keeping track of it because that is a moving target, just very narrowly is
John Truman Wolfe 24:39
why I did hundreds of hours of research and wrote a book called The 99 strongest banks in America, because after I wrote the bank and kind of pointed this out, I got into tremendous amount of traffic going okay, good. Well, where do I bank? So I just went through the balance sheets of the banks all across the United States and at least made recommendations of about 100 really sound banks with good loan to deposit ratios and, and, and healthy loan portfolios.
Jason Hartman 25:08
And that’s a fantastic tool. I just wonder, don’t we have to worry about it changing all the time, right? We do
John Truman Wolfe 25:15
it we do indeed, you know, the real estate market changes. I mean, it’s surprisingly healthy Now, given the, you know, current economic situation in the country, the real estate market continues to boom. Oh, good,
Jason Hartman 25:29
but you’re saying, Yeah, I know, the markets booming, that’s for sure. But you’re kind of implying that the banks are really tied to real estate, like they were the last time around is that way by you’re mentioning real estate?
John Truman Wolfe 25:39
No, I mean, I don’t say I mean, there are still so called mortgage backed securities, nowhere near the amount that there were during the crisis of 2000 2007.
Jason Hartman 25:49
And also, to be fair to the banks and the mortgage industry. You know, they’ve been a lot more conservative this time around. I mean, I’m not saying they’re perfect by any means. But there’s a There’s at least there are some entities putting brakes on the system this time around. Whereas last time around, nobody was putting brakes on the system. It was everybody was incentivized to just put out more toxic loans.
John Truman Wolfe 26:14
Yeah, you’re absolutely right. Although things have started edging in the, you know, in the direction of 2007 2008. But you’re right, there are a lot more regulations in place. And I think banks just from for their own survival, have been more judicious in terms of the kinds of loans that they’re making.
Jason Hartman 26:33
Now, I’m looking online now and I see the 27 best banks, but I don’t see a 99 banks. I’m not sure how long ago this book was published. So you know, that’s another question. You said. The book was called the 99 best banks, but
John Truman Wolfe 26:50
remember the 27 when I started doing the research, and it took the fair amount of time, and as you noted in my bio, I’m a kid I’m a former senior credit officer for a couple bank On the west coast, I wrote the 27 best banks. And then I got a fair amount of traffic. Well, yeah, but what about my state? So I’m back and I and I basically updated it. So the 99 eight should be up there and Amazon. I don’t go look at it every day. Well, I don’t see, you
Jason Hartman 27:17
know, in the 27. Bank book is four years old, how old is 99? Two years. Okay. So and how, how quickly do you think I mean, do you really have to look at your bank like every year and evaluate their financial condition on an annual basis? That’s, that’s a hassle.
John Truman Wolfe 27:37
It is a hassle and you have to know what you’re looking for. I mean, the bank rating aid. One of the reasons I wrote the book is is that the bank rating agencies in there a couple of them, were giving five star ratings to banks that had loan to deposit ratios in excess of 100%. In other words, they not only lend out all the depositors money, but they Then themselves went and borrowed money and lent it out. And that’s just not healthy. But these rating agencies at all is a Five Star Bank. And I you know, not not five stars in my heavens.
Jason Hartman 28:12
Yeah. And remember the movie Moody’s ratings the last time around, right? What a Sam zactly.
John Truman Wolfe 28:18
Jason Hartman 28:19
Unbelievable. So you talk a lot about this being a, this or the last crisis, I guess, being a crisis by design. You know, my listeners are familiar with the concept of a false flag. What do you mean by that in? What’s the point of designing a crisis?
John Truman Wolfe 28:35
Well, the truth is, my feeling is is that crisis was designed to take down the US dollar. And if you look at the strength of the dollar and what has happened to it over the last few years, it has slowly declined to the point that it is it’s it certainly still has its reserve currency status, but it’s slipping. You know, China and India now do business in their own currency. So the BRICS is set up that economic organization of, you know, Brazil, Brazil, Russia, China, India and South Africa. And they’re all doing business in their own currencies, which was maybe 10 years ago, this was unheard of all international trade was done with the dollars. Not anymore.
Jason Hartman 29:20
Yeah, I know, there’s inkling of that. But I’m not too in fear that the US because, you know, the problem is the US. It may be bad and all these ways, but compared to what I mean, what we think, are we supposed to think they’d like Russia and Brazil are better off financially than we are.
John Truman Wolfe 29:37
But fair enough. And that’s why the dollar still stands as it stands. But it’s my point is, if you kind of look at a graph of it, it’s it’s slipping, it does not have the strength that it had now. Does that mean you run from $1? Tomorrow? No. It does mean that the yuan is gaining strength. I mean, China is in haling Gold, like there’s no tomorrow. I mean, so is Russia. But China’s I just wrote a newsletter on the gold war between the US and China. I had when I when I wrote the book, originally a friend of mine in Taiwan, send some people in Beijing and you know, and then she sent me an email. She said, you know, the government of China would like to talk to you about the solutions and the book. I thought it was a joke, as well. I haven’t find me over business class and put me up here I in the Beijing a few times. She sends me an email back they’ll fly wherever you want, however you want, put it wherever you want. So I flew to Beijing. I spent a week there talking to people that had founded the pboc the People’s Bank of China, and also met with the president of China gold, which is the largest gold mining consortium in China and probably around the world. This guy has 40,000 employees. And Jason he’s buying a bowl mines around the planet like Pac Man everywhere. The US South America. So for so they’re making a very strong run to, if not back the RMB the Chinese currency with gold to make that currency stronger than the US dollar. So, while that’s not a crisis situation today, I think it’s one that’s coming.
Jason Hartman 31:21
But you know, I just, I don’t know, I hear that a lot. And I just, you know, respectfully have to disagree. I just think the US is going to maintain its hegemony for a long, long time. You know, China in 10 years has a giant demographic problem after COVID nobody trusts China anymore. You know, those jobs are moving back to the US. A lot of them a lot of that manufacturing is moving back here. And they’ve got one aircraft carrier we’ve got what 12 it’s just I don’t know, you know, and I don’t think China is going to go to war with us either as this you know, much as I hear those things, you know, you don’t go to war with your customer. Your biggest As customer, and yeah, you know, the US is it’s the whole thing. The whole global economy is built on smoke and mirrors. It’s absolutely impressive in a way we got to this point. I mean, don’t you think? It’s, it’s like the biggest show game ever? You know,
John Truman Wolfe 32:17
it’s a good point and your point and your points are well taken. And, you know, I talked to the friends that have strong points of view as as yours. And they’re basically like, you know, China’s so far from us. It’s true. But if you look at a graph, the growth in strength of the Chinese economy and particularly the RMB, the Chinese currency is up now. Does that mean that the dollar is going to fall you know, fall to nothing tomorrow? I think what’s more dangerous Jason for the dollar, is the fact that the Fed is throwing what four or $5 trillion dollars into the economy out of thin air
Jason Hartman 32:55
5.2 I believe is the latest number. It’s It’s insane.
John Truman Wolfe 32:59
I can’t Keep up with it. Yeah,
Jason Hartman 33:01
yeah. But you know, other other central banks are printing too. I mean, you know, it’s not like we’re the only one and we just have this fantastic position, reserve currency, the most debt in the world is owed to us. And it’s all denominated in US dollars, which makes the dollar stronger. The biggest military, the biggest economy, the fact that all the Chinese people want to bring their money here because, you know, we still got that Brinks truck reputation, but I tell you, if a bail in happens, we’re gonna lose that quickly. Okay, and people might feel safer keeping their money offshore. I don’t know, you know, it’s just a very, it’s just a very complex mix of things. What I fear more, though, is a move toward a digital currency that said central bank and government sponsored digital currency that would cause us to lose spending privacy. And that would cause you know, it might be a move toward a world digital currency. And if that ever happens, it’s just checkmate, you know that there’s no freedom whatsoever, because you can’t go to another jurisdiction to have any degree of privacy or, you know, change the system. So that that’s that’s what I fear more is this, this this world government concept and you know, we’re in it maybe it’s probably not a world government per se, but a world monetary system that is stronger than the world monetary system we have now dictated from Basel II. Any thoughts on that?
John Truman Wolfe 34:34
Well, you’re one you’re absolutely right to I’ve written on that subject at some length three, you may or may not be familiar with the Christine Lagarde, who was at the time the head of the IMF. She was in New York for a conference and some reporter asked her about that very after about digital currencies. And surprisingly, she said, You know, these, you know, these are going to be good for the future. So, I think that’s A real potential problem that the you know, in some way they’ll make the SDR which is the IMF currency, digital or they’ll be a digital a global digital currency. And then as you say, there is no national currency, there’s nowhere to go. So I think that’s something to be very concerned about digital crypto currencies, the Bitcoin and friends are not going to go away. They’re here to stay. And the question is, how are those going to be dealt with China is developing a national digital currency. So as Russia there has been peeped out of the Fed that they’re doing going to do the same,
Jason Hartman 35:36
it’s definitely coming. They’d be crazy not to do it. Number one, it makes them look modern. But number two, it gives them so much control over the population. So it’s like, if you don’t get the vaccine, you don’t get your government digital money, you know, or you can’t use your money, you know, with China doing their social scoring, something like that could be seeing the difference is the US the people in the us won’t tolerate is much of that they’ll Yeah, they do it slowly. How do you boil a frog Of course we’re all getting boiled. But there’s this kind of rugged individualism that just pervades that, you know that, you know, don’t tread on me Gadsden flag mentality in the US, thank God that keeps the government somewhat a day you know, it’s it’s a blessing but at least there’s a move there in China. You know, look at what’s happened in Hong Kong recently. I mean, that’s China’s getting pretty scary. And there’s going to be massive capital flight from China more and more with with that kind of totalitarian crackdown that they’re having. So wrap it up for us give out your website and tell people where they can get newsletter, you know, books, all the usual places, of course, but you maybe your newsletter,
John Truman Wolfe 36:47
yeah, the newsletter is strategic financial intelligence.com. That’s kind of a mouthful, but that’s what it is strategic, you can go to strategic Financial Intelligence COMM And the newsletter is called strategic financial elegance, I write it monthly. In addition to that I do await a weekly radio show called the junk removal financial hour. And I take that converted to text and send a transcript audio and written to the subscribers each week. And we have you know, we interviewed various folks and and that’s the newsletter strategic Financial Intelligence calm.
Jason Hartman 37:25
Excellent. Well john, thank you so much for joining us.
John Truman Wolfe 37:29
My pleasure. Thank you so much for having us. It was a good discussion.
Jason Hartman 37:37
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