To start the show, Jason Hartman shares an investigative report on crooked investors who offer wraparound mortgages to homeowners and then don’t make payments, which ruins the homeowner’s credit. Then, he interviews Austin Petersen, Founder of the Libertarian Republican, a 2016 Presidential candidate, and the Executive Producer & CEO of Stonegait LLC. Austin talks about bringing about tax reforms in fiscal and monetary policies, the inherent problem in our democratic system, and the price drop in oil. He also believes that the people need to get our currency out of the government’s hands.
Announcer 0:00
This show is produced by the Hartman media company. For more information and links to all our great podcasts, visit Hartman media.com.
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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 1:03
Hey welcome, welcome, welcome. This is Jason Hartman, your host, Episode Number 655 655. Our guest today will be someone who’s making a splash on the political stage and that is Austin Peterson. Yes. We’ve interviewed several very serious presidential candidates on this show over the years, whether they be pat buchanan, Steve Forbes, a whole bunch of others, Ben Carson, of course, Dr. Ben Carson. Austin Peterson will be on today. And the reason I wanted to run this episode now is because last week, he was just endorsed by Rand Paul. And of course, we’ve tried to get Ron Paul and Rand Paul on the show. We got close a couple of times, we’ll get them and hear what they have to say about things. But Austin Peterson’s pretty interesting presidential candidate, john stossel, you may have caught john stossel show last week where he talked about The two party system and how people don’t want to just play into that system anymore. Even though the world says you’re wasting your vote, you’re wasting your vote if you don’t vote for a Democrat or Republican, because you’re just helping. No, probably the democrats if you vote for a libertarian, I guess is the mainstream thinking. I guess that’s somewhat debatable, too. So this is the problem we always have in this country. We have this lesser of two evils problem, don’t we? And that just, that just really sucks. It’s not good. It’s not fair. It’s not right. But hey, what are we to do about it? All right. So we’ve got some great shows coming up on very specific tactical real estate investing stuff. Some of our shows, they’re, they’re kind of strategic, philosophical, and some are very tactical and very specific on what you can do. We’ve got some client case studies coming up, where we’re going to hear from clients and hear what they did what worked what didn’t work. The Good, the Bad and the Ugly. And we’ve got the author of landlording on autopilot coming up on the show as well. Just some some great stuff.
Jc watts is coming up on the show, too. He’s Congressman, lots of great stuff in store. As always, we’re trying to bring some great guests and some great topics to you as well. I am going to be doing a show where I talk about subject to or all inclusive trustee deals a little bit. I was having breakfast with a friend of mine, who’s an investigative journalist. Well, actually, I should say, investigative reporter and anchor on a television station. He did a big expose a last year on a guy in one of our prior markets, no one I knew or we’ve been affiliated with. But this guy was basically just doing these all inclusive Trust Deed deals. These wraparound mortgages. You may be familiar with this terminology. This is a real gray area, folks. It’s Probably not legal, I don’t know, maybe it is a lot of people seem to be doing it. And here’s the rub. Here’s the problem is that of course, the Supreme Court upheld the due on sale clause. I believe that was way back in like 1977 or 78. I want to say it was a long time ago, and a galaxy far, far away. And what this basically does is it is a way in which buyers will transfer title to the property without paying off the mortgage circumventing the due on sale clause. This can be problematic in and of itself, but it gets worse. When these crooked investors go to homeowners or investors and say to them, Look, I’ll take over your property. I’ll do it on an all inclusive Trust Deed or a wraparound mortgage, same thing and AI TV. Those are the terms used and they say they’ll take over the property and start making the payments to your lender. But here’s what happens. The seller comes to find that they didn’t make the payments and their credit report is now ruined. So very problematic area. So be careful out there. There’s never any shortage of shysters and crooks and criminals and scumbags in the world is there. That’s what keeps it all interesting, but we have to be forever vigilant. And be very careful. So let’s talk about inventory for just a moment. One of my friends posted a really interesting chart in one of our private forum groups. And this chart, check it out. It says the pipeline of distressed inventory is decreasing nationwide, at some point in each sub market margins will be compressed. Well, hey, I have news there already compressed, margins are compressed, and he’s referring it to it from a home flipper perspective.
Okay. This A friend of mine who basically buys properties, like many of our local market specialists do, turns around and rehabs them and resells them to people. Okay. So here he’s saying at some point in each sub market margins will be compressed as the same number of investors the demand side of the equation, chase a decreasing supply of distressed inventory, then there’s a thinning of the of the herd. So the market reaches a new equilibrium in some markets, non judicial foreclosure states. This has already happened. Now in the judicial states as you know, people that’s just me talking I was kind of paraphrasing what he said as I usually do misquoting everybody. In the judicial states, you’ve seen those markets, Illinois, Florida, has do great examples, be much slower to recover and those are kind of the last Mark It’s where you can still get some pretty decent deals. Right? So it’s just interesting. And that’s why, you know, we’re doing business in Illinois, even though we’re on the verge of maybe having property tax increases. Florida markets that aren’t overpriced yet, as some are, that haven’t quite completely recovered yet. Those are interesting as well in many other markets around the country. Of course, of course, you know that already. But I do want to also mention that we are just working on a small semi private property tour of the Jacksonville, Florida market right before our venture Alliance weekend. So the likelihood is that we would do this on Friday, right before our venture Alliance weekend. So if you want to come as a guest or join the venture Alliance, even better yet, the venture Alliance mastermind group if you want to come as a guest, remember you can do that for a guest fee of $2,000. As a one time opportunity, and this is on Jekyll Island, of course, Jekyll Island, Georgia, we’re staying at the same hotel where the Federal Reserve was created. We’re all these bankers, the aristocrats of the day, the people who ran the world where they stayed way back just over 100 years ago. And we are also having our Saturday meeting in the exact same conference room where the creature from Jekyll Island was created. So that should be darn interesting. And I think we’re going to do a small tour of Jacksonville before that because that’s the airport a lot of people fly into. So stay tuned for more info on that. Another.
Okay. So let me talk to you a little bit more about this chart for a moment before we get to our guest presidential candidate Austin Peterson today. Okay, so this chart basically shows the massive drop in foreclosure inventory. And this is from first quarter 2011 on up to the third quarter of 2000 15 it is staggering. Like, if you were looking at what I’m looking at right now, you would just see that there is a massive decline in distressed property inventory around the US. Why has this happened? Well, we all know they’ve created a bunch of fiat money out of thin air, it has rushed into the stock market, the housing market, etc, etc. And this is what we have to contend with. All right. Now, another thing I’ve been talking about for several years is the unprecedented demographic shift that is coming. And guess what that happens to be the title of an article I just found. And here’s what it says. I just saw this article literally yesterday. Unprecedented demographic shift is coming. This has huge impact for investors by the way. It says the old will soon out number the young. This is a news article. Luke Rooney. And it says, In just a few years, people 65 and older around the world will begin to outnumber kids under the age of five, quote, a mind blowing demographic situation that will be a first in human history, unquote. Business Insider reports. That’s the finding of a recently released US Census Bureau Report in aging world 2015. This crossing is just around the corner before 2020 the report authors right adding quote, this unique demographic phenomenon is unprecedented unquote, by 2050. It’s not that far away, either folks, and we’re all gonna be alive and living healthy by them too, because you’re listening to Jason Hartman longevity and biohacking show right. Okay. Of course you can find that on it. And all the usual platforms shameless self promoter.
Okay. So by 2050, the older demographic will make up get this about 16% of the world’s population. Well, in the younger demographic, it will make up just 7.2%. Now, let’s talk that’s the world. Let’s talk about the US the article goes on to say right. In the US the elderly population is rising, but not as fast as in other countries notes, The Wall Street Journal, the US in 2015 had nearly 15% of its population 65 and older 48 million people. By 2015. It is anticipated to rise to this is going to blow your mind. Ready for this folks? 22.1% or 88 million people still that means The US would rank as the 85th oldest country in 2050, down from 48th spot today. So in compare, even though this population, in other words is increasing dramatically in the US, still overall, compared to other countries, they’re going to get even older than we are here in the States, right? In 2015, the oldest country was Japan, with Germany with Germany, Italy, Greece and Finland. Rounding out the top five in 2050. The top five is forecast to be Japan, South Korea, Hong Kong, Hong Kong’s not exactly a country but, you know, a little bit of fudging here, Taiwan Slovenia, okay. Some of the youngest countries will include Afghanistan, Saudi Arabia and Laos. You know what that says, for terrorism, not good. You and you have a lot of young men holes that are economically disadvantaged. Like in Afghanistan, that is like a recipe for terrorist problems, right? We talked about that on prior episodes, China in India will have a smaller population of people 65 and older by the percentage than Europe and Japan.
Okay, so now you’ll see what’s happening with these aging populations, right? These are countries and I’ve talked about this on this show and my longevity and biohacking show the wide ranging economic impacts of these demographic shifts they are they are monumental in nature. Because think about the things we’ve got going on. We’ve got this aging population, who becomes more of a burden as much as we love them. More of a burden on the system on the welfare state on social security on Medicaid and Medicare and now Obamacare, right So we’ve got more going on here in terms of the demands on public funds from governments, not just in the US, but around the world. They have similar programs in many countries, obviously. So we’ve got that in good here in the good old USA, thanks to the government, ensuring student loan debt. We’ve got this massive increase in student loan debt. Okay, so you combine these two trends, and you take the middle generation, which by the way is mine, yours truly is generation of Generation X. Gen X, that’s me. Okay. And many of you out there fairly small demographic cohort, only about what 3540 million people something like that. Whereas the baby boomers, very large, about 76 million and Generation Y or the millennial generation, about 80 million, the largest demographic cohort, by age. You in American history is the millennial generation saddled with huge student loan debt, fairly anemic economy, just a totally different world view of things really more socialist in nature, generally speaking, a lot of them support Bernie Sanders, but at the same time, they liked Ron Paul, interestingly, and I think a lot of them like Rand Paul, too.
So it’s kind of kind of a really interesting, you know, hard to get your head around that generation, but we know for sure that they like mobility, they are going to be renting a lot longer. Now, a lot of you listening to this may be thinking, well, Jason, shouldn’t I be investing in nursing homes? Yeah, that’s a very logical thought process. And there’s certainly money to be made there in assisted living homes and so forth. And as you know, a couple of months ago, I was here in Phoenix when I was still living in La Jolla, San Diego area before I had moved back And I attended an assisted living seminar here for a weekend we looked at properties and so on and so forth. Again, opportunity there for sure. But complicated that’s like running a business. It’s not the main focus of what we teach, which is about being an investor. Very different concept. Certainly, there’s opportunity. But I also want you to remember that way back way, way back to the 80s. They have been planning for in building for and when I say they who do I mean Well, thankfully, mostly the private sector, companies, people owning nursing homes, assisted living facilities, care facilities, dialysis facilities, Alzheimer’s facilities, etc, etc. So many of these people have been investing in building for this for many years because the concept of the grid Of America is certainly nothing new. That’s people been talking about that massively. There’s been lots of talk about it for decades and decades. So as they say, on wall street or really in any market, you know, it’s priced in the demand, or I should say the supply has been largely delivered to that market, not completely. There are always imbalances. But a lot of it has been delivered or is about to be delivered to the market.
And the interesting thing, too, is that health span has been increasing so dramatically, that that changes things as well. So this is just something to know about. The other big factor you’ve got here and why continents I shouldn’t say countries because not a country. continents like Europe, in countries like Japan and Russia are literally dying. They are dying because The fertility rates are so low. In fact, some of the lowest fertility rates, probably in all human history, and then you’ve got increasing longevity. And you’ve got a whole different kind of math that needs to be done to take care of the aging population, with the increasing demand on social services and welfare services and entitlements. We’ve talked many times before, about what I call the $60 trillion time bomb. What Laurence Kotlikoff, the economist who’s been on the show twice now calls the 220 trillion dollar time bomb, whatever the number is, we can argue and debate about that. But this is this huge, huge demand on entitlement services an unfunded mandates coming at us over the next 15 years. Which really make a lot of prognosticators believe that inflation is baked into the cake. We will see because at the same time, of course, we have game changers, like the new Tesla Model three that was just released. Get this. This is the largest. My friend drew calls it the largest crowdfunding campaign in human history. Over 200,000 people, one of them being yours truly put deposits down on that car. It’s only $1,000. And I believe it’s even refundable. But you could transfer your spot to a family member, they say, I think you’d probably sell it, although they’re probably gonna make that difficult, but you could probably do it. This is a car they’re going to start building in 2017 that will have the self driving hardware built into it. Of course, you’ll have to pay extra for the software probably, which on my car, my Tesla Model S that I recently purchased was 25 $500 and that’s the autopilot. It’s not fully self driving yet, of course, but we’re getting there. It’s getting close. It’s an amazing time to be alive. And that is a game changer for real estate. As I’ve said before, I predicted the rise of the suburbs, the rise of suburbia, that, by the way, has been declining over past years. I think we’re going to see a shift back, because the commute is going to be less of an issue.
And geography will be less of an issue than it’s ever been in human history. Up until now, geography has been a huge issue. The three primary rules that have always instill govern real estate are location, location, location, but I say that’s going to become less important as time goes on. And self driving technology pervades the world. I mean, think about it, a $35,000 car for the masses. With autopilot software or hardware built into it, and they believe that this is the prelude with the same hardware package to be a fully autonomous self driving car. What time is it? It’s an amazing time to be alive. I’ve talked a lot on the show over time, and my opening keynote for meet the Masters was about the dogs that don’t bark. And I saw a great Martin Luther King quote just yesterday that I want to share with you before we get to our guest that has to do with the dogs that don’t bark. It’s another way of saying it. Here’s what Dr. King said. He said, everything that we see is a shadow cast by that which we do not see. That’s a good quote. Think about that one. Let that float around in your head for a while. Everything that we see is a shadow cast by that which we do. See, remember, it’s the concept of the dogs that don’t bark, the profound impact of the unseen. And we will talk about that on upcoming episodes of course, because it matters so much to us as investors. And just as people in society, there are so many, so many very impactful parts of that statement and concept of the dogs that don’t bark.
Okay, check out venture Alliance mastermind.com and join us for Jekyll Island coming up in May. That’s going to be phenomenal. Check out Jason hartman.com. We’ve got some great properties on there. Inventory has certainly been a challenge, but there’s still some great deals out there for you. Also, check out Hartman education comm Hartman education comm for some of our great courses. Alright, let’s get to our guest Austin Peterson.
It’s my pleasure to welcome Austin Peterson. He is the presidential candidate for the Libertarian Party. He’s The founder of the libertarian Republic, executive producer and CEO of stone gate pictures, and former associate producer of Judge Napolitano show freedom watch on Fox Business Network. Austin, how are you?
Austin Petersen 23:14
Hey, I’m great. Thanks for having me on today, Jason.
Jason Hartman 23:16
Good. Yeah. Thanks for joining us. Well, I am a huge fan of liberty. I’ve been a libertarian pretty much all of my life, I guess a few times identified as a semi Republican in there. But well, it’s not as bad a mistake is the D word. Okay.
Austin Petersen 23:34
That’s true. Don’t say the D word. Please.
Jason Hartman 23:37
Yes, yes. definitely not. Libertarian issues have always been really very sensible to me and very reasonable. I just, it’s hard for me to understand how people wouldn’t agree with them. But I guess when you’re on the dole, and you’re getting free stuff, why would you want anything different, right?
Austin Petersen 23:53
Well, yeah, people’s stated preferences are oftentimes different than their revealed preferences. They’ll tell Yes, Oh, that sounds great. But then when they vote, they’re going to vote. They’re going to vote for in there what they believe is their their own perceived self interest.
Jason Hartman 24:08
Everybody votes their pocketbook one way or the other.
Austin Petersen 24:11
Right? That’s for sure.
Jason Hartman 24:12
Well, what are some of the major issues, especially as they relate to finance the economy investing, whether it be on the fiscal or the monetary side, in this election cycle? And tell us what you’re thinking and tell us about some of the planks in your platform?
Austin Petersen 24:28
Sure. I mean, I think that the big the big story right now, that is the on the fiscal side is one that the candidates aren’t talking about, because they’re so focused on foreign policy entities tied to foreign policy. And that’s oil prices. We’ve seen the drop in oil prices. And that’s, of course, there are quite a few things that are responsible for that. That’s the increased production in the United States, domestic production and production that we have as well as new technologies such as fracking, which has allowed us to boost the output domestic output here in the United States. driving down prices. We also have a problem with the Russian economy. We have this slowing of growth in the countries such as Russia and China. So there is a less there’s less of a demand for oil for some of the from some of these countries, it’s really taken a big hit on Russia. And of course, we also have the OPEC we have the Saudi Arabians and the OPEC countries are boosting output as a way to try and drive down the cost of oil so that big they can try and harm the American economy. And of course, we do have a lot of layoffs happening in Texas, there are companies going out of business, or left and right because of these oil prices, investors are getting wiped out I know quite a few personally who are who are like Austin, I wouldn’t be donating to your campaign if I was being destroyed in the stock market right now. And and these are problems. These are problems that we can actually I think, help solve domestically, not the problem of jobs in necessarily, but the much of the cost now of oil and gas is the taxes. And a lot of the states are now saying, well, because revenues are lower, we’re going to hike the taxes, because they’re getting less revenue for the state. And so this is an issue of course of interest to libertarians. And of course, as a low tax libertarian, I would say we need to have lower taxes, and I don’t think they need to be raising the taxes on gasoline, we need to, you know, we do actually get a benefit. Someone does get a benefit from lower prices, perhaps the producers are being harmed, and some investors are being harmed. But that’s how capitalism works. Because if you want to talk about let’s talk like Bernie Sanders for a moment, social mobility, they say, Oh, the rich people are just, they’re just there’s such a huge gap between the poor and the rich in this country. We need to do something about it. Well, look, capitalism is doing something about it. And now the poor people who are who are who can get into they can afford to get into the market. So it’s a buying opportunity for those of us who look at it that way. And, you know, this is how you have social mobility. You get people who, who come in and they buy up All of the assets and now you’ve got a whole new class of wealthy people that will arise. After this crisis. Everybody who is you know, who is worried now are the people who are the establishment and the people who are, who are looking at this who have saved their money and who have done their due diligence and who are good capitalists will go in and they’ll buy up oil at these low prices, and they will benefit from it. So this is something that I think that these presidential candidates should be talking about. They don’t want to simply because I’m sure Big Oil is financing quite a few of them. But it’s something that I can talk about, because there’s no strings on me. And it’s one that I’d love to bring up in the debates if I get there.
Jason Hartman 27:36
Well, that’s for sure. It’s interesting, because people talk about well, why isn’t deflation a good thing? You know, when prices go down, more people can afford things but you really see the ravages of deflation. It’s a very difficult cycle, when you have that kind of thing, and Hey, thank God, there’s more oil production, the US if Obama would get out of the way there be a heck of a lot more than there is now and this hurts the poor the most all of these environmental regulations Well, I should say, regulations done under the guise of helping the environment, which are usually just a power grab. Because I always say green trees have red roots, meaning communist roots. It’s a waste to basically have control, you know, over the proletariat. But now, when you have low gasoline prices, I mean, that makes all those people that are doing manual labor jobs, when gas prices go up and candidate Obama back in 2007 2008. His stated goal was to have six $7 a gallon gasoline to force people into these proletariat cars, right. So you almost hurt the people they say they’re trying to help. It’s absurd, you know,
Austin Petersen 28:43
yes. And you know, a backup to your point on deflation Yeah. Again, there are always going to be people who are going to be crying about deflation, but here’s a perfect example. Look at the taxi industry. You know, the the disruption of capitalism with Uber has created a whole new economy and it better fits the consumers. So we’ve seen deflation in the taxi medallion industry, people who bought medallions for $600,000 are getting wiped out and certainly got it was government regulation. Oh, yeah.
Jason Hartman 29:10
Now they’re now they’re worth 80 grand if they’re lucky, you know? Yeah,
Austin Petersen 29:14
yeah. Oh, it was government regulation that kept those prices high and the Union, the taxicab unions wanted to keep those prices high so that they could price people out of the marketplace. But but then Uber comes along, and now we have a deflation in medallions, but we have a better marketplace. So deflation, you know, yes, I do see some people being harmed. But then, you know, again, if you want people to be able to have an opportunity to buy, then you do have to have prices lower at some point. And I think that right now is a good buying opportunity for people to get into the markets and and governments need to lower taxes. And as President of the United States, if I’m elected later this year, God help the democrats and republicans but I yeah, I will bring a reform agenda that is a low tax agenda. And I will veto unconstitutional bills and look for ways to reform not just our fiscal policy but our monetary policy, you know, I like to make the joke whenever I’m with my nerdy friends I go, you know, monitor there’s a different there’s a difference between monetary policy and fiscal policy. Monetary policy is where money is created and fiscal policy is where it’s destroyed. Yeah, yeah. Where it’s spent is where it’s destroyed basically fiscal policy. Yeah,
Jason Hartman 30:16
yeah, absolutely. That’s a very good way to put it. It’s really interesting, though, when when every politician talks, you know, everything that comes out of their their stupid mouths, is about creating a new law, a new regulation, a new requirement, a new bureaucracy, you know, wouldn’t it be nice to see someone go in there and actually repeal some laws? How is it that every year in places like the Socialist Republic of California, my home state for most of my life, you’ve got eight or 900 new laws every January 1? It’s insane. I mean, it’s literally insane. You do that for 10 years. You have what eight or 9000 new law That’s mind boggling.
Austin Petersen 31:01
The government has no incentive to to reduce their power size or spending. They’re just there just isn’t. I mean, this is actually one of the problems that you have with constitutional democracy such as we have, because you know, the politicians as they are, they pay no price for being wrong. And I’m not trying to talk about monarchy here. But I mean, at least a king wants to keep his kingdom intact. The Democrats and Republicans they are they’re there for four years, 10 years, 50 years, perhaps. But even then, they want to get everything they can at the public trough before they before they retire and get their pensions. And so to me, I guess it’s a problem of the system. I mean, it’s sort of inherent, and I think we need to talk about restoring checks and balances, and we need to talk about perhaps some radical ideas such as maybe an article five constitutional convention, which, you know, we could talk about later perhaps or some other time but
Jason Hartman 31:49
but but but just for a moment on that article five thing. I mean, it’s interesting that you say that because Don’t you love the constitution as a libertarian or your guideline or not?
Austin Petersen 31:59
Not so much I am skeptic before I am pretty much anything else. I’m an individualist first, maybe skeptical. Second libertarian third, and constitutionalist. Maybe fifth or sixth. You see the constitution doesn’t grant rights that the government does rights do not come from the government or the Constitution, the Constitution only off it only recognizes those rights which are inherent to our humanity, which is, which are our individual natural rights, which is it’s funny because the First Amendment is the freedom of speech, which indicates that it existed before the Constitution, it predated the Constitution. So yes, I think the Constitution is a good guide. There are some things that I would change about it. It was written by men and so as as it was written by men, it is flawed, which is why we have things problems like disagreements over the Commerce Clause, does it mean that it gives Congress the authority to regulate everything or does it mean that they were to keep to keep commerce regular, as some libertarians would suggest it I think that there’s I think there’s perhaps some problems, there’s some elasticity in there that might be a bit too elastic. And that goes right to the heart of the debate between the framers between Alexander Hamilton, the central banking aficionado, and Thomas Jefferson, the more agrarian economist who wanted to have a, you know, a humble agrarian Republic. And what we have nowadays is really just it we’re living in Hamilton’s world. Nowadays, the banking system, such as it is with this with the Federal Reserve, a central bank, which is sort of at the end of the creature from Jekyll Island. And, you know, of course, if you’re a libertarian and you believe in monetary freedom, then you’re not a Hamiltonian. That’s for sure. You’re more of the Jeffersonian and and I really want to talk to you about that central bank because to me, I think this lies at the heart of our of our problems in the United States. If we could have a discussion, a real policy discussion about about our monetary policy issues. And you know, my platform plank does call for ending the Federal Reserve. However, in the meantime, in the short term, I would look for something like an audit as well as a monetary commission, that would be a study group. That would be a study group that would look at transitioning us to a free banking economy. And that’s, that’s something to me that I think would be, would be would contribute to a more stable Republic and would also take away the monopoly of the banks, which they don’t like. But I don’t care because I like freedom and liberty and I want free market in money just as much as I want one in commodities. Okay, so So what a lot of people have a hard time understanding there, there’s the world of content in the world of context. And money is, or we should say currency to be more accurate. Maybe currency is like this context in which we live, that we don’t even sort of notice. And I think that’s why central banks around the world have been so mysterious to people in the monetary system is, is really it’s very difficult to get your head around it. It took me years and I still really don’t understand it. I’ll be the first to admit it. I mean the way money is created out of thin air and lent into existence it is a mind boggling concept it’s very hard to really understand. But how would we have well was leading into that Austin by saying, you know, as you talk about money or currency, it is a commodity. So there should be a free market for for currency. What do you mean by that? What does that look like? I don’t think most people really can grasp that or get their head around that idea. It’s a it’s a pretty because we’re so baked in this we’re just used to it. It’s like air we don’t notice area. We breathe it all the time. How would that work? To me a free market of money is the most beautiful aspect of libertarian philosophy because the money is the heart of the economy artists. Like it’s a currency our currency is the heart of our economy. And people they they look at the dollar and I think they feel a certain sort of patriotism towards it. So there’s a there’s a desire to protect So when I, when I discuss about competition to the dollar, they think that I’m promoting something that’s anti American, which it certainly is not because the the United States had an experiment in free banking, it wasn’t 100% free banking, it was more that the states were allowed to set their own currency. And some private banks were allowed to compete, but they were still forced to register with the state. So there wasn’t there wasn’t a true free banking system such as they had in Scotland during the 1700s, which was a very stable system and something that I hope your your readers will go in and Google, there’s some tremendous resources online about the free banking era and Scotland. But without getting too much into the nitty gritty what it really means to have a free bank, to have a free banking system is to mean that we would legalize competition against the dollar internal competition. And I think this is necessary because even if you have have if you could say, Oh, well, we needed a big government to win world war two and then we needed a big government to win the Cold War. Well, okay, fine. If that’s true, then let’s Leave history as what it is we needed a super state to beat a super state it the argument between economists used to be it was between john Maynard Keynes and Karl Marx during the Cold War. And, you know, Keynes ended up winning that argument. And then in the end, it would became an argument between Keynes and high IQ, which is where we are now, the United States has grown up as a, as a as a, from a republic to an empire of liberty, as Thomas Jefferson has said, it really has become something of an empire. And now I think what we really need to see is an experiment in internal competition, because we’ve there really is there’s no other superpower, there just is no one who comes anywhere near the to compete with the United States in terms of economic power, military strength, there just is no, there is no other superpower. There are others, you know, large states, but they just don’t have the type of the type of economy that we have in the United States. So now, now would be a good time for us to experiment with this concept of federalism where you know, not only states have have more authority and power to legislate themselves, you know, without being under the purview of the federal government, but that the banking system of the United States should be should be allowed out to, to have competition against itself and whatever nationalist arguments might have been made for us maintaining a rigid control over the currency of the United States, I don’t think really holds water anymore. I think it’s perfectly American for us to do things like allow bitcoins or other digital currencies to compete against the dollar and see if people want to use those. I mean, most people are I think not using cash anyway, we’re now using these plastic cards, and those are all just backed up by ones and zeros on a computer anyway, so we are effectively on a digital currency. But the what I like about Bitcoin is that it’s experiment is that there is a limited supply. And and that’s what we need. We need to try, you know, allowing golden silver to compete as a currency as well allow people to set up their own currencies. And let’s just see what happens. I mean, what was what are people talking of all you’re doing is the most non violent activity in the world. You’re trading gold and silver with your friends. You can go and trade bitcoins with you, if you like with your friends. Let’s see how it does against the dollar. The Federal Reserve is out of Monopoly for too long. I think it’s time for us to have a little more experimentation.
Jason Hartman 39:17
Yeah, so I certainly agree with you in concept. But in let’s talk about how that would work on a practical level. I think this is one of the challenges that libertarians have these ideas sound like they’re, they’re just way out there. I mean, wouldn’t it be chaos? Wouldn’t it slow commerce to have to deal with Well, how am I going to pay you? Is it gonna be in in gold coins? Or is it going to be in Bitcoin or dollars or marrows or yellows or whatever? You know, that would be really complicated to deal with that. I mean, certainly technology could help but
Austin Petersen 39:53
yeah, and this isn’t a jab at you, Jason. But But yes, there are a lot of people who think that people are too stupid Stupid to make decisions for themselves and their own financial security. And I really I bristle when I hear that because it just to me reeks of elitism boarder past the line of arrogance.
Jason Hartman 40:14
Well, I mean, I’m not saying I’m not saying and I know you’re not jabbing at me, but I’m not saying that I’m just saying like for simplicity’s sake and efficiency sake, you know, wouldn’t it? Isn’t it that just is complicated? Well, wouldn’t it be just simple if the government just provided health care for everyone that we didn’t
Austin Petersen 40:29
have to worry about behind insurance
Jason Hartman 40:30
so that then people would die waiting in line?
Austin Petersen 40:33
Oh, okay. You know, so again, if the same argument, you know, again, is healthcare a commodity, you know, is is is money a commodity, or currency a commodity, you know, these are these are all goods and these, these should be provided by the marketplace. I think we’re never gonna we’re never gonna know what good money is, until we can get government’s filthy hands off of it. Money is ours. It is our common good. It is Something that it really is something of the comments. It was not it
Jason Hartman 41:03
should belong to people. It’s not from Jekyll Island. Exactly.
Austin Petersen 41:06
That’s correct. It does. It does not belong to the government, it does not belong to the state. Because if the government were to disappear tomorrow, and the money was no good, people would start people would find another currency, they would find a way to do business with each other and they would find another store of value. Historically, gold, historically silver, those have been good exchanges of value those and I think that those would probably arise again. But if we, if we allow competition to arise, you see people like well, what are you gonna, what are you gonna do? How what institutions are you going to create? If you allow competition institutions will arise spontaneously, you know, before we had the insurance cartels set up in our current insurance system for health care, we used to have we used to have systems where people voluntarily gave them I can’t remember what they were called at the time but they were they were basically like health care exchanges, and everyone One other community would contribute a little bit, it was an insurance pot. And they all they all banded together to buy health insurance for one another. And they did that privately. But now because the marketplace has been crowded out by regulations in the insurance market, now, no one has any incentive to do it. So when you say, Oh, well, how will an institution arise? Well, just remember that when you when you have the noose around the free market, you will never see an institution arise to take its place because it’s not allowed because it’s illegal because it’s regulated. And so the government is is stopped the stamping out pass,
Jason Hartman 42:33
Or if it’s not even regulated or made illegal, like it is to have other forms of currency. It’s It’s crowded out. And that’s exactly what’s happening to healthcare. I mean, since Obamacare, my premiums have gone up by about 35%. That’s insane. You’re lucky and I was healthy. I haven’t had any claims, either, you know, or any big ones at least. But that’s just insane. You can see the government crowding the health insurance companies out it’s exactly what they’re Doing by design?
Austin Petersen 43:01
Absolutely. That’s correct.
Jason Hartman 43:03
That’s correct. So yeah, you know, a lot of this really boils down Austin to the concept of you can’t hear the dogs that don’t bark. See, no one would know. No one knows how much better it would be if we had this libertarian world, because no one will allow us to try it.
Austin Petersen 43:21
Exactly. Yeah, no, you’re right. You’re absolutely right. Yeah, I would like to try it. I think that it’s possible. I’m yawns and so I guess maybe I’m just not jaded yet. I believe in a better future I have to, because I’m gonna be around for a while. And that’s another reason you know that I like to talk about my candidacy and say, quit voting for these old Fuddy duddies that you’d have tried voting for someone who actually has an investment in the future because like I say, these politicians like Hillary Clinton and Bernie Sanders, who have been around for years and years who have never competed in a private market or never held a job that wasn’t a nonprofit job in their life. They have no stake in the future. None And yet and yet here, and I do. So again, I don’t want to trash the country that I love so much and I will be with for the rest of my life. I think when people I think if the American people get a chance to find out who I am if they’re if I can just get the exposure, I think that people will find that I am a much better candidate than the two major parties and especially if it’s Donald Trump versus Hillary. Now, this is a big story. I’ll tell you this week, I posted a video to Glenn Beck. And you know, Glenn Beck, you know, isn’t necessarily a perfect libertarian who is, but I posted a video to glenn beck saying if Donald Trump wins, and it’s Trump versus Hillary, you need to consider looking at the Libertarian Party candidate and here I am. I’m not the candidate yet, but I’m assuming I will be. But I think that if it comes down to that, and we have a progressive Republican who is hated by a majority of Americans and a progressive democrat who is hated by a majority of Americans, they will look at this Midwestern form farm boy with no skeletons in his closet. And you know who was born in Independence raised on a horse farm and peculiar, and you know, near a town called Liberty, and maybe they’ll give me a chance. There are good people out there running for office. Ladies and gentlemen, I think it’s time to turn off the boob tube and take a look online at who are the up and comers, because right now the revolution will not be televised. I think that people need to start getting their information from alternative sources, alternative media, your podcast is tremendous. And thank you so much for having me. You’re doing a service to your country right now. And I’m very grateful for that. So yeah, so I think that it’s time for us to think differently. And it’s time for us to know we don’t I don’t think we need to be held back by dogma. The American dream of is one of futurism. And if you have unlimited potential, that pioneer spirit that a better future is possible that we don’t have to just reform the systems that we have, but that we can alter or abolish them, and go forward into a new future with new institutions or no institutions if we want.
Jason Hartman 45:59
Yeah, very interesting. Very interesting stuff. Where do you think people should really learn about the libertarian ideal? I mean, I guess I got into it by listening to the band rush. And then I discovered iron Rand because a lot of their lyrics are very randian and eine Rand interestingly didn’t really ever say she was a libertarian. She kind of criticized the libertarian he didn’t like us. Yeah, she called him the hippies of the right or no, the hippies of the left. I can’t know the hippies of the right I believe she called him. But that that’s odd to me, but she was odd. Although her writings are great.
Austin Petersen 46:34
Oh, I love her. I love her. I like people who don’t even like me sometimes because I if I learn something from them, or I’m inspired by them, I think I it I look to lots of different people, um, eine Rand is is a great example of someone who is a hardcore individualist, someone who believes in the greatness of the spirit of humanity, and I strongly identify with that. There are economists that do a wonderful job of breaking down these things much more technical. It’s not a Go to introduction necessarily Friedrich Hayek, Ludwig von Mises or these are tremendous thinkers. Milton Friedman is actually someone that I would recommend, if someone is like, Oh, I need to I want to learn about capitalism and I want to learn about free markets and libertarianism, Milton Friedman’s, he’s the great way because he’s like, he’s like your uncle Milton. You know, he’s very, he’s just very congenial and funny and interesting. And he makes you think about things in ways that you hadn’t before. Thomas Sol, another brilliant.
Jason Hartman 47:27
Oh, he’s he’s been on the show. He’s grown. Yeah. And
Austin Petersen 47:30
And here’s another guy, Walter Williams. A lot of people don’t know about him. He’s kind of he’s kind of on the unsung hero of libertarianism. So he’s great. I would look at him those those are the names of the people who whenever I see something across my desk with their name on I read it, john stossel, and he’s been on Yeah, I’ll actually be on his show this Friday. So if your audience is watching Fox Business, this coming Friday, Friday night, I’ll be on to talk about the New Hampshire primary. So check that out. john stossel is great.
Jason Hartman 47:57
Give out your website and tell people where they can find out more contribute to your campaign. Whatever.
Austin Petersen 48:02
Yeah, please. My name is Austin Peterson and that’s spelled s E and I’m Danish. So it’s Austin Peterson 2016 dot com. And you can find my full platform there. My Facebook page is my most active network. I do live streams quite frequently where I interact with my audience and stir up trouble for the big government types. And that’s my Facebook page. If you just type in Austin Peterson on Facebook, you’ll find me it’s got the blue checkmark, Twitter is AP for LP, and you know what I answer pretty, pretty. Every question that comes into my email inbox that I can that isn’t, you know, I hate you, Austin Peterson, but there are, you know, if you have questions, send them over there to my Facebook page. And I will, you know, pretty much guarantee you an answer as soon as I can get to it.
Jason Hartman 48:47
Fantastic. Austin, one last thing for you. I just like you to talk real quickly if you could. And tell us about the cartel that runs the elections. I mean, I know this is a deep subject. We could talk for two days, but just quickly, like You know, getting into debates getting exposure. I mean, these ideas are sensible. They work in real life they work, but it seems like the party just can’t really get a foothold.
Austin Petersen 49:13
Yeah. Yeah, I think a lot of that has to do with not just the direct tampering, that we have the main parties with our system. But I think a lot of it has to do with the brainwashing because people think people think that the parties are actually part of government. They they’re confused with the fact that these are private parties. And and maybe they’re confused, because we end up funding these parties, we end up paying for their conventions. So I don’t know maybe they saw the bill and thought that Oh, yeah, this is a government expenditure. But the reality is, is that we are indoctrinated in this country to believe that there are only this is a two party system. And the only way that are the only two parties that can exist are the Republicans and the Democrats, until we can get to get it to the American people, if we until we can sort of catch them is why I don’t like government schooling. But until We can catch them at the right time and age, to give them the opportunity to learn how the electoral system really works. I don’t know how much of a change we can make with these third parties there. I think that the third parties provide an important buffer in the sense that they’re a threat. They’re a little bit of a knife, the knife to the neck of the of the main parties. And, you know, I would honestly consider it a tremendous victory. For myself if in this election, I can force any of the two major parties to take on my platform planks, if I can terrify the two major parties into thinking that they better pander to my voters, or else they, or else they will lose votes, then I will see that as a victory. If I can get two or three or four even 5% of the national vote in this election. That will be a great stride forward for my party, and I hope to do so I think I can build a strong national coalition. I tell the republicans all the time, by the way, please electron please, please. I would love it. You know, the end the democrats elect Sanders or Hillary It doesn’t matter. The frontrunners for the parties have never been weaker in terms of what they can accomplish nationally. And so I think this could be an opportunity for the Libertarian Party this year. But if they nominate old toast, Gary Johnson again, and if they or if they nominate just some some crazy, who doesn’t care about these ideas, who doesn’t have the fire in the belly, I just I don’t see it happening this year. That’s why I’m fighting as hard as I can, and running as hard as I can. And I hope that if your listeners are inflamed with a passion of limited government and liberty, like like they hear from me, then they will contact me and please donate and register to volunteer in your state and helped me to take over the government so I can leave everyone alone. That’s fantastic. Austin Peterson, thank you so much for joining us.
Austin Petersen
Thank you, Jason. Have a great day.
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