Jason Hartman starts the show with Evan Moffic to talk about Joe Biden and his plans for taxes. They discuss how Biden wants to eliminate the 1031 Exchange but why that won’t actually happen. Later, George Gammon comes on the show to talk about Japan’s debt to GDP ratio, comparing it to the US. The two go into economic headlines as they talk about the US deficit, trade surplus, and the US savings rate.
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 multimillionaire 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 0:53
Welcome to Episode 1545 1545 I almost almost got that a little backwards there. Anyway, it’s been a long time. Got a lot of episodes under our belt for sure. Make sure you’re going back to check those out. If you’re new to the show, be sure you check out Jason hartman.com slash start. And that is our Quick Start of all while not all but many of the fundamental investing and economic concepts that we teach. And then of course, listen to the regular show five days a week. I’ve got my favorite Rabbi Evan here with us, Evan, how you doing?
I’m doing great, Jason. It’s always good to talk to you and to learn with you and to be with you. It’s It’s great. It’s good weather. What? How can I complain?
Jason Hartman 1:41
Well, living in Chicago. Yes. Good. Weather is not super common. They’re good stuff. Well, hey, the presidential election is in full swing. And this I don’t know this may be the first time we don’t see a presidential debate. When are we going to see some debates? I think Joe Biden will likely fall asleep. Trump will have zinger after zinger and just just nail him. And that’s why the democrats don’t want to see Joe Biden in a debate. But Kamala Harris is out with her economic policies. And she would very likely end up as president pretty shortly afterwards if Biden gets elected, because hate to say it, Joe, I don’t think you’re gonna make it. You’re half asleep. Now, I just can’t imagine. But listen to this. I mean, folks, this would be disastrous for the economy, it would be disastrous. And these are stated published plans for taxes, right? How do you raise all this revenue for your ridiculous spending programs? How do you do that? Well, first, you raise the income tax the top income tax rate from the existing rate of I think 37% to 39.6%. And then you raise the corporate taxes to drop Business away and incentivize them to offshore. There is much of their businesses they can to stick it in Ireland, in the Netherlands, in any tax haven, they can find. you incentivize that behavior by raising corporate taxes to 35%. That would be far and away the highest in the world. And then, Evan, do you are you looking at the same thing I’m looking at with the other stuff, so you can share a couple of those bullet points?
Well, the raising income taxes over people making $100,000 by 4%, how would you I mean, we came out, we had the strongest economy in decades. And then we went through a coronavirus, a pandemic, how could we then raise taxes again? I mean, I just and Camilla Harris comes out of California with where the economy has been plummeting. People are paying over 50% combined tax rate. I mean, it’s almost insanity.
Jason Hartman 3:51
Yeah. When you combine state and federal income taxes. If you’re in the higher brackets in the Socialist Republic of California, you’re paying more than half of your money to the government. So that means you are working more than six months a year just to pay Uncle Sam. Okay, so
Okay, so I always look at the upside, because income property is such a durable asset, that even if democrats win, our properties will still perform well, our tenants, what if student loans are forgiven? I know my tenants have a big student loan payment. I see it on the credit report all the time. That’s forgiven. I can raise rents. I mean, so there’s always an upside, right?
Jason Hartman 4:38
No, there is there’s always an equalizing factor. There’s always an upside to everything. But it requires you to adjust and the thing in any market in any economy with any new policy, the thing that really hurts people is the transition stage. So it’s that transition stage where you can’t adjust right a way where you’re maybe under the burden of you know, this new regime, or whatever it is anything in the market in general, right interest rate changes, policy changes, whatever they are, but let’s just make sure we reiterate that. So an additional 4% tax on $100,000 plus household income. Okay. So that means if each spouse is making $51,000, and they make $102,000, they would be subject to an additional 4% tax, because Kamala Harris and Joe Biden, think you must be rich if you’re making over $100,000 household income. That’s not individual income, it’s household income. Unbelievable. That would be terrible for the economy. Okay. financial transaction tax on stocks, point 2% So now, yes, you have discount brokers that trade very cheap or not really free. We saw that with the Robin Hood accusations or allegations that are out recently it’s never free, folks. Just remember when something is free, you are the product and that’s the way it works in the Google and Facebook universe. And that’s the way it is. It’s nothing is ever really free. Just always understand it. But point 2% on every stock trade, and then a fan financial transaction tax on every bond trade of point 1% for trading bonds and doesn’t say it on what we’re looking at oven but of course and we talked about this on the show before course, sleepy Joe Biden wants to eliminate the 1031 tax deferred exchange listeners. If any of you are listening to this Show and even considering if you have this far out fantasy about how you might just vote for Joe Biden and Kamala Harris, you should not be thinking about real estate or succeeding in personal finance or growing your wealth, because they are going to do everything they can to stop it. Yep, that’s what they’re gonna do. All right. having enough of my rant there. So tell us about this other casualty of the pandemic. And that is this gorgeous Hotel in Chicago. Tell us about that.
Well, there’s it’s called the Palmer House Hotel. It was built as the residence of a industrialist named Potter Palmer, who is a friend of Marshall field and all those guys who helped start Chicago or build up Chicago, beautiful hotel. I’ve conducted many weddings there in demand as a as a rabbi. Rabbi, yeah. And it was owned by Hilton but then it was managed by Hilton. Had some private investors, and it’s just been gutted and $300 million in debt and they’re closing it. They just can’t keep it open. I don’t know what to do it really takes up almost an entire city block. So I don’t know if they’ll eventually create a condo building out of it. But they’re they’re closing and it’s a huge loss. I mean, just google Palmer house Chicago and you see some of the pictures it’s stunning.
Jason Hartman 8:25
Yeah. And and actually being it or DuckDuckGo it don’t Google it, but but whatever. And you know, when he says absolutely stunning listeners, that’s an understatement. This hotel is gorgeous. It is gorgeous. And it really goes to show you how sad it is when we get into bad economic times. And now of course it’s uneven. There are always opportunities, but it really creates a loss of resources a misallocation of resources. Because this beautiful hotel Why should Do you need to convert this to condos or a shopping center or some other use? It’s perfect like it is, you know, this is not, by the way, an example of creative destruction. This is just an example of destruction. so terrible news and will certainly miss this gorgeous, gorgeous hotel. Evan On another note, and we’ve got to get to our guest today, which is George Gammon . Coming back to the show. Did you enjoy his presentation to meet the Masters?
I did. And I can’t tell you. I’ve talked to so many clients who came to us from your conversations with George and these clients, the people who follow George, they are smart tiger. These are masters. I have had some wonderful conversation about fiscal policy with them. They understand income property. I mean, I’m very grateful to George I mean grateful to you for the friendship and George for educating his clients. It’s wonderful, ya know,
Jason Hartman 9:55
George has done a great job and we really appreciate all of his viewers and And listeners coming over and buying properties through our network and coming to our events like meet the Masters where he recently spoke. And you know, one of the predictions that I made about the pandemic is of these six really, tidal waves of change that are going on in the economy and in the housing market is multi generational living and nourish posted an article in our content group. You probably saw it, Evan, and it talks about how not this isn’t really what I talked about in my prediction, but it’s one of the parts of it really, a Pew Research survey that showed that a majority get that a majority of young adults in the US live with their parents for the first time since the Great Depression. Not the Great Recession 1012 years ago, the Great Depression in the 1930s. And this is really more of that concept of the boomerang generation. But, you know, look at this is normal around the world, it’s, it’s, the US is one of a fairly small number of countries where it’s customary for you to turn 18 or 20 or 22 and move out, you know, normally, you’d live with your parents till you get married, right? And a lot of places, okay, that’s right. I don’t wanna say normally, but in a lot of places, that’s the way it works, right? And a lot of cultures, and then the elders live at home with you, as they age. And, you know, in the US, you send them off to an assisted living, but the assisted living is really under attack because of the pandemic and all of the deaths and infections. Another one up, you don’t want to put grandma in a place like that.
That’s another one. You predicted a year ago, saying assisted living is not going to be a good investment. And we’re right, that one.
Jason Hartman 11:52
Yeah. And I want to make a distinction about that. You know, when we throw words around, like assisted living, it’s kind of like saying commercial real estate Right, it’s I don’t want to make that sound like a blanket thing. It’s certain types of assisted living, where the more people you have there and the closer the quarter is, of course, the more dangerous it is, the more high risk it is. But I do think no matter what, there are more people aging in place. And there are more technological tools to make this possible right than there ever have been before. I mean, look, you can buy your aging parents an apple watch like this that I’m pointing out if you’re watching me on video, by the way, and you know, that can really protect them in a lot of ways. And it’s like the old thing you know, we all saw that old commercial from years ago, where the lady’s wearing the medic alert or whatever it is around her neck right that big giant pendant and she pushes the button and says I’ve fallen and I can’t get up. Well now, the Apple Watch or many smartwatches really shouldn’t just pick Apple because frankly Apple products are going downhill and apples going downhill, sadly, but that’s another discussion.
And I can buy income property, right?
Jason Hartman 13:08
Yeah, by income properties within your stock instead. But, you know, it can tell you if that person has a slip and fall, or what their activity level is in all kinds of stuff. So you can really keep an eye on people from a distance now, which is very handy for a family to be able to do that. And it can send an alert, if there’s a problem, you know, to to other family members or circle of concern, if you will. So a lot of options there. Evan, we’ve got to get to George, but you know, just anything you want to share with us before we turn it over to George about the market about what’s going on about what buyers are saying and, you know, anything that’s happening out there?
Um, yeah, my buyers, they’re just loving these low interest rates, and are, you know, excited about investing right now. I’ve had some great conversations I’ve had a lot of conversations with, with people who work overseas and who are actually moving. I’ve got a couple clients who are moving back to the US and excited, they’re going to rent and they’re using what they would use for a down payment to buy income properties. And because they’ve been listening to you, and so I’ve just I’ve had some great conversations the past few weeks,
Jason Hartman 14:20
Good stuff, good stuff. No, he said, it’s a very active time in the market, no question about it. And you know, things are happening. So if you need us, reach out at Jason hartman.com. If you’re in the US, you can always call us on the good old fashioned telephone at one 800 Hartman and a couple resources I just want to give to people of course, the meet the Masters recordings are available, and that’s at Jason hartman.com slash recordings. And then the very popular asset protection and estate planning webinar is available at Jason hartman.com slash asset. That’s Jason hartman.com. asset, the attorney from that webinar gave an excellent, excellent presentation not really a presentation, but more of just a q&a session last Friday, and anybody who purchases his program and enrolls in that can get a copy of this and get access to that recording. And it was great. We went for about an hour and a half. And he just answered all sorts of questions from people. So really good stuff again, that webinar is available for you this week at Jason hartman.com slash asset and protect those assets. All right, Evan. Thanks for joining me for the intro portion. And let’s get to Part One of George Gammon . It’s a great pleasure to have George Gammon back on the show. He is a real estate investor, a investor in all kinds of things. And a fantastic macro economics educator. It’s always great to have him on the show, George, welcome back. How are you?
George Gammon 15:59
Hey, Jason, thanks for having me. It’s good to have you and you are coming to us from billionaires row in St. Barts. Right? That’s right. That’s right. That’s right. I tell people that I’m the poorest person here by a mile. When I first got to the island, I looked around I said, my goodness, I need a like a St. Barts stimulus check somehow.
Jason Hartman 16:22
I don’t think you’re gonna get one there.
George Gammon 16:24
No, no. Gonna get out of here, that’s for sure. But no, it’s a beautiful place. And I came here just because I didn’t want to deal with any lockdowns and the restaurants are open, the gyms are open. I’m going to go to the gym after we talk. And it’s nice to just have some sense of normality right now in a very crazy world.
Jason Hartman 16:44
Are there any cases there or is it just totally clear? Like you know, there’s there’s no, is there any precaution there at all or is it just normal living?
George Gammon 16:54
There are some precautions when you go to the grocery store. They make you wear a mask, some Restaurants require that you wear a mask when you’re like walking to the bathroom, you know that crazy stuff. It’s kind of weird because the French government has a little bit of say, but the people here for the most part really don’t like the French government, and they just try to kind of ignore them. But technically, like they’re supposed to give a restaurant a ticket if the people are wearing a mask to the table, but very few restaurants even acknowledge those rules. So it’s the main thing is you got to wear a mask when you’re going to the grocery store. Other than that, you’re pretty much good to go pretty good. How didn’t St. Barts and I, you know, I don’t know if you’ve studied it much. I know you’re there. You’ve been there. Maybe what a month and a half now or something. But how did St. Barts become this sort of, you know, really high end Caribbean destination? I mean, it’s not I never hear about it as a tax haven or an asset protection haven. I hear more about, you know, Cayman or naevus in that regard and search Other places around the world to like jersey, etc. But um, why St. Barts? Well, I think for the Europeans and the French it is a tax haven. It’s very similar to Monaco. Okay. It’s just Monaco in the Caribbean. Okay. I think Atlas was Rockefeller. Rockefeller built a huge house here that’s over by this beach. Right I go snorkeling. It’s I think it’s been abandoned for for several decades, but it’s still there. And he was the first person to kind of make it popular, I guess with kind of that crowd. Since it’s just a it’s a very little island. There’s maybe 9000 people here. The people are quite literally the most pleasant group of people I’ve ever met in my life. They’re not just nice. They’re very courteous and very welcoming as well. And I think that combined with it’s, it’s, it’s very nice. I mean, a lot of the Caribbean islands you go down town and it’s sorry, down It’s not a terrible, yeah, yeah, I mean, the beaches are great. The oceans are great. But you go to the in town you’re like, Man, this is this is not.
Jason Hartman 19:08
It’s a slum and a lot of those youngsters I mean, it really is a total slum and no high crime and all kinds of problems.
George Gammon 19:15
But St. St. Barts is the complete opposite. Not only the downtown area, just gorgeous. There is there’s nothing here that you would consider a slum and the crime is for the most part just non existent to the extent that I mean, nobody here walks their doors, nobody and your car when you go up to a restaurant. Most people just leave the keys in the car ignition when I went ocean swimming yesterday out to these cliffs where I go, cliff diving, and I just left on the beach, I just left my briefcase just right on a rock with my laptop and my phone which has all my credit cards in it. I didn’t even think twice. Wow, twice. Interesting. It doesn’t really exist here. So That combined with everything else and then you’ve got a lot of celebrities that come here because they don’t get hassled. I know a lot of you know, singers and artists and whatnot have gotten married here. And I know during the I heard a statistic the other day from a guy to a cocktail party that during New Year’s like some crazy number like 90% of the super yachts in the entire world are here in St. Barts. Wow. New Year’s is a very popular place. I won’t name any names but a mutual friend of ours has a property here that he rents out during the holiday season which is the high season here I know you’re talking about logo name any names because I don’t you know, I don’t want to draw his his numbers or anything. But he he rents it out for six figures per week. Wow. It’s that type of place. You sent me an image from your phone a screenshot of a map with a problem properties for lease or rent there. And I couldn’t believe the prices. They were super expensive, but I got that. Yeah, just on Airbnb. I think that was Yeah,
Jason Hartman 21:07
prices were astronomical. But I’ll bet you the rent to value ratios aren’t very good, because I bet you the value of those properties is just astronomical even more so than the rents.
George Gammon 21:18
It’s still a no, it’s still a no the RV ratios. You can get a you can get a good RV ratio here. The problem you can’t
Jason Hartman 21:25
George Gammon 21:26
Yeah, yeah. I mean, I mean, who’s got 20 million to drop on a property? Right. But believe it or not, I mean, if what
Jason Hartman 21:32
you mean a good RV RV ratio in favor of the tenant, right? Yeah. Not as a landlord. I was a
George Gammon 21:39
landlord. Oh, yeah.
Jason Hartman 21:40
Oh, that’s amazing on expensive properties. I wouldn’t have thought.
George Gammon 21:44
Yeah. As an example, if you’ve got, I mean, if you know what you’re doing, if you’ve got, let’s say, 7 million in a property, you can make 700 grand a year on that.
Jason Hartman 21:54
Yeah, well, you got to get 70,000 a month for 1% of 7 million, right? So while you’re getting sick
George Gammon 22:00
You’re getting six figures a week during the high seas.
Jason Hartman 22:03
Yeah, right. Right. Right. Well, that’s Vacation Rentals too. So, you know, more more volatility potentially. But right now, given the fact that you don’t have lockdowns there, it’s an attractive place for wealthy people. So, you know, that skews, though, the thing too, but very interesting. Well, hey, the other very courteous place that I’ve been, and I think you’ve been there too, is Japan. And you know, you did a fantastic YouTube video recently. And another one where you’re talking to Peter Schiff and and then you were talking about the Federal Reserve and what they don’t want us to know and so forth. And I thought I’d like to ask you because I talk about Japan quite a bit on my show. It’s a really interesting economic story. You know, they’ve been saddled with, you know, what used to be called the last decade, then it became the last two decades and now it’s into the last three decades. And then they have you know, Ave nomics, which you know, many people have heard of, and, and they’ve got a real demographic disaster in that they’re just not having kids and the population is aging off Basically and in 70 to 100 years, if they don’t have kids or immigration, Japan literally won’t exist. You can’t have a country if you don’t have people, right. So, but it’s fascinating because people have really downplayed Japan saying that, look, their debt to GDP ratio is the highest in the, in the modern world. It’s 230% debt to GDP. And just to give people a reference point, and I haven’t checked it lately, but I think even into all this craziness, now, it’s gotten worse, but the US is round 100% or approaching 100% debt to GDP. Oh, it’s more than that now. Okay.
George Gammon 23:35
These four plus trillion dollar deficits, the US deficit just this year, will be the same as the total amount of debt accumulated from 1776 to 2000.
Jason Hartman 23:49
I have to laugh at that. It’s so absurd. It’s so totally absurd. It’s it’s beyond. I mean, it’s just beyond comprehension, frankly. So we’ll talk about that. But, you know, we were talking about hear about Japan. And I just want you to touch on that for a moment, in that the debt to GDP ratio does not necessarily Bode so badly for Japan as one might think. Right?
George Gammon 24:12
Well, it hasn’t caused hyperinflation.
Jason Hartman 24:15
The opposite actually. Right?
George Gammon 24:16
Yeah, it’s called. It’s caused mild deflation, which I think is when a country gets that over indebted, I think kind of just a very slow grind deflation like that is probably a best case scenario. If you look at history, when you get a debt problem, it’s just there’s no easy way out of it. I mean, Dr. Lacey hunt talks about this all the time, you either have to have austerity, you’ve got to have, you’ve got to inflate away the debt, or Unfortunately, sometimes a way to get out of it is a war. But there just is no easy way out if you over consume. If you consume more than you produce for a long period of time, at some point you’ve got to under consume That’s just the way it works. There’s no financial engineering to get you around just a basic thought experiment. If you were stranded on an island, and you had, I always use the thought experiment that if you’re stranded on an island with a suitcase full of a billion dollars, are you rich? I don’t think so. Because there’s no goods or services. Right? So anyway, going back to Japan, what most people see is they say, Well, you know, how come they haven’t had inflation or hyperinflation? And therefore, if they’ve done quantitative easing, if they’ve done all these things for the past three decades, or plus, you know, why can’t the united states do the same thing? And the United States could do the same thing, but there are no certainties there are always probabilities. So you have to look at the facts and how the economies are set up, and then weigh the probabilities for yourself. So there are dramatic differences. First and foremost. The savings rate in Japan is staggering. I mean, it’s almost 30%. And so if you have your population saving that much money and not spending it into circulation, your velocity gets so low. That it’s it’s, I’m not going to say that it’s hard to have inflation, but you’re not going to get it as easily. And then most people would see inflation as the value of the currency going down in relationship to goods and services or to other currencies. And there’s always a bid for the end because they’re a net exporter. So what happens is when when you got two countries that are trading between one another, the one that is producing more stuff, more goods, and exporting those goods, they’re going to have a trade surplus, and therefore there’s going to be more demand for those currencies from the countries who are buying their goods. Right? Where the opposite is true. If you’ve got a trade surplus, then what you’re doing is you export more of your currency units, and therefore it’s sometime if all else being equal, the value of those currency units relative to other countries is going to go down. The reason that hasn’t happened with the United States is because obviously we’re the world reserve currency in the world runs on dollars. And therefore there’s there’s a bid for these dollars to do business outside of the United States, regardless of what’s happening with our domestic economy, or how much goods and services we are, how little goods we’re actually producing and exporting.
Jason Hartman 27:36
Yeah, the US is in a pretty enviable position, at least for the time being, and you can really break a lot of rules. When you’re in the position the US is in you can defy gravity. The only question is for how long? I want to show you a chart real quick, George.
George Gammon 27:52
George the economy, most people don’t don’t really think that through. So I would argue that massively distorts the economy. as well. So going back to an interview with Lacey hunt on a, I want to give them props. Grant Williams, who’s just a fantastic guy just interviewed him for my channel and Bill Fleckenstein did an interview called the end game or the podcast is called endgame. This episode is Dr. Lacey hunt. And he talks about, they talk about a debt Jubilee. And I think as a thought experiment, that that’s a great way for us to get our heads around. What happens to an economy when you over consume. It’s not just the debt, like the Keynes isn’t the mmt. People would say, Well, if the Fed could just buy all of the treasuries as an example, then on the asset side of the Fed’s balance sheet, you’d have, let’s say, whatever 27 trillion in treasuries and then on the liability side of the government’s balance sheet, you’d have the same 27 trillion in treasuries. Well, okay. Just click a button and the ratio, right every, like an NBA scoreboard right? Yeah, or from 100 all All the way down to zero and you just start all over again. And the Fed keeps spending money and the economy grows as a result of this government spending. But what’s absent in that line of thinking is what has happened to the economy as a result of the government spending all that money in the first place? Hmm. So as an example, with the United States government spending now is over 50% of GDP, or
Jason Hartman 29:30
10. out and salutely insane.
George Gammon 29:33
Yes. What is government spending? And we know government doesn’t produce anything, right. Yeah, they balance? Yeah. So they’re not producing anything. So 50% of this. So that doesn’t go away. Right? Even if they’re able to start from zero again, the only thing that happens is that gets worse. It gets good goes from 50% to 60%. So that if the quote unquote, how rich an economy is, is based on the amount of goods and services that are actually being produced, right, not currency units that are just being returned. At some point that it just it comes home to roost, regardless of whether you have a debt Jubilee or not. Another great example would be all the zombie corporations. In Japan, if Japan had a debt Jubilee, those zombie corporations would still be there.
Jason Hartman 30:20
Yeah, no, that’s all fascinating before you go on too much. I just shared my screen a moment ago. And I just want you to see this, because it’s it’s sort of interesting, and it sort of goes to this, like whole dysfunctional system we have. If you look at the personal savings rate in the US, it’s always been, you know, fairly low Americans.
George Gammon 30:37
Keep in mind, this is like the CPI as well. I’ve done a video I’ve done a video on how they, of course, I
Jason Hartman 30:44
don’t deny that it’s
George Gammon 30:46
bogus. And notice that they changed it. I think they changed it back in 2015. right around there, Jason, but prior, it was like for like three 4% and then it just popped right up to seven. That’s That was because of the finagling of the numbers. So
Jason Hartman 31:03
but but but they didn’t change it this year. So the benchmark, relatively speaking is all we’re looking at. And it’s just interesting to notice how much money people are saving when they’re in lockdown. Because they’re not spending money, right? So you see here, we’re looking at February, March area right here, you know, and it’s it’s offering around, you know, 7.78% something like that. And then the savings rate just skyrockets. Yeah, you know, and light here, and infinity and beyond. And, you know, they’re getting an extra $600 you know, like paying them not to work right. And then you see, as the lockdowns are lifted, the savings rate starts to plummet a little bit as people go out, and they buy an RV. They buy a boat, they go out to some restaurants, they’re not going on airplanes, but they’re doing vacationing with RVs like rv sales are through the roof. You know,
George Gammon 32:01
Because everyone’s buying camping gear, yeah, right, right. So people are doing domestic vacations, right. So this is just kind of interesting. I just thought I’d share that. I think I think they’re doing domestic vacations. And they’re also getting out of dodge. I mean, the I don’t know if you saw what happened, like rock ran ball last night. And I mean, it’s just bananas in urban areas in the United States right now, especially. I got a lot of buddies that are even in red states that have bought RB RVs. And they lived in kind of even suburban urban areas. And they’re like, Listen, I’m out. I can work from my computer. I’m going to go to like show low Arizona as an example. And I’m just going to sit here in a campsite with Wi Fi service.
Jason Hartman 32:45
When we have five g as long as you have a tower close to you, those towers need to be plentiful and close to you. And now there’s a whole bunch of theories about 5g and the health side effects I won’t go into but that will make you know net just plentiful mobile you know soon fast. Tell us though, about this savings chart. What was the manipulation? And when was it 2015? Because you know this this goes back that far. And by the way, this is from the St. Louis Fed. But yes, tell us about the manipulation. We talked about unemployment number manipulation a lot. You and I both do that. Obviously, the CPI, consumer price index inflation metrics, manipulated massively. But what about the savings rate?
George Gammon 33:25
I’d have to go back and look at my notes. I don’t know the year right off the top of my head. I this is a video I probably did four or five months ago. I remember with the manipulation of the rate, though, it had to do with the fact of how the IRS estimates what you’re not paying them. Mm hmm.
Jason Hartman 33:45
George Gammon 33:46
it’s just a completely obscure, like objective or subjective number, and that when I read it, I’m like, I think it was the reason it didn’t make any sense to me whatsoever is because it only calculated What people are not paying them. And it didn’t calculate how much people are overpaying them.
Jason Hartman 34:05
George Gammon 34:06
Okay. I would argue people over pay far more and they underpaid. You know, the IRS always says oh, you know, Americans paid the tax that they should, or people under pay by 500 billion a year something like that. That is that all they’re doing is they’re looking into people to under pay. They’re not looking at it on net balance. They don’t look at all the people who overpaid because they don’t want you to know about that. In fact, I talked to Robert Barnes is a good buddy of mine. He was the lawyer for Alex Jones against Twitter. He’s a free speech, you know, constitutional lawyer, representing Wesley Snipes against the IRS and whatnot. So he’s got a lot of knowledge with these IRS cases. And you know, we talked about how many people actually overpay and he’s saying he went through some of these deductions that I’ve never even heard of, and I’ve been audited five times. My I’ve never you know, as a business owner, as an entrepreneur, you know, you Have a little bit more a better understanding turns to especially the real estate guy as to what’s deductible and not and he was going down this list of things that I have never even heard of. So I can almost promise you that 90% of the people especially they’re just going out there to h&r block or using some sort of software program. They’re not taking the all the deductions that they qualify for. Not even close to it. So anyway,
Jason Hartman 35:23
yeah, no, it’s, uh, you know, 70 some odd thousand pages tax code, I guess, at last last time, I knew and it’s, it’s just super complicated. And, you know, there’s so much manipulation I mean, in 2006, I think it was they stopped publishing em three. It’s just a moving target to try and figure out the economy because the powers that be want to just hide everything from the hoi polloi. As little people, this will be continued on the next episode. Thank you for listening and happy investing.
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