In the first part of the show, Jason Hartman talks about home prices and what goes into calculating housing prices. He also reiterates the definition of investment and its difference from speculation. Then, he welcomes Dr. David Collum to discuss inflation. They examine the unseen inflation in goods, services, and depreciation. Jason and David also analyze how money creation and negative interest rates affect us.

Announcer 0:02
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 1000s of real estate transactions. This program will help you follow in Jason’s footsteps on the road to your financial independence day, you really can do it. And now here’s your host, Jason Hartman with the complete solution for real estate investors.

Jason Hartman 0:54
Welcome to Episode 1651 1651. Today, we have a returning guest, Dr. David column with the Betsy R. Miller, chemistry and Chemical Biology Department at Cornell University. Now you’re thinking, what does that have to do with income property? Jason, it has a lot to do with it. Because every year this professor does this Whopper of a detailed Year in Review report. And it gives a lot of insight into what’s coming next. So it’s all about the economy. It’s all about everything. And I believe he said, although don’t quote me on this, that this year’s report was 197 pages long. It’s basically a book he writes every year on a urine review. So one of the most detailed urine review pieces you’ll you’ll find anywhere. He offers a way for you to get it for free. I believe it’s he gives that out at the end. So stay tuned for that. But before we get to it, we got to talk about housing prices, folks. This is important news. Yes, it is. Okay, so I am. I am annoyed. Yes. And here’s what you’re thinking, Jason. You’re always annoyed at something. Well, okay, you got me there. I do get annoyed at stuff. But hey, constructive discontent is what creates progress. It. It’s what moves the world forward. Yes. So I’ve got constructive discontent. Here’s my constructive discontent today. You know, sometimes does it ever feel like yeah, just can’t win. One particular person is annoying me. So he goes around, I got my YouTube videos out there and such. And he makes these comments like, you know, you’re a perma bull. You’re always promoting housing, you’re talking your book, all this crap.

Jason Hartman 3:14
This guy is clueless. Here is the reality of the situation that I tried to explain to this. This gentleman. The reality of the situation is that as much as we love, all of you, investors, all of you, buyers, and we love you, believe me, we love here. But we have two types of clients. We have buyer clients, and we have seller clients, right? And guess what? Do you know which one we need more of right now? You guessed it, we need more seller clients. So if I were talking my book, here’s what I would say. I would say, now is the time to sell because the housing market is gonna crash. Things are in decline. It’s all messed up. You better sell properties today, or else. Yeah, that would be talking my book. Because then guess what we would have? We would have more inventory for all of the investor buyers who want to scoop up these properties. But the shortage we have is the inventory shortage. So I’m just telling you like it is folks. Pretty much everything right now is looking like prices are going to continue to increase. Like the housing market is going to continue booming, which by the way, I don’t even care Remember, we invest in a multi dimensional asset class. This is why we love income properties. We’re not in it for the appreciation, the appreciation. Yeah, it’s the frosting on the cake. If it comes, I can spend it as well as the next guy, but who cares, we invest for yield, we invest for cash flow, that is the sign of an investor. Guess what the appreciation person is? They are a gambler. They are a speculator, they are not an investor. Remember that Jason Hartman definition of an investment? If it doesn’t produce income, it is not an investment. It is only a mere speculation. Because that’s what speculating is, it’s looking for capital appreciation. And investing is looking for cash flow. That’s what we like cash flow, that good old fashioned yield. We just love it. Love it, love it. Yield out does risky speculative appreciation any day of the week. Now, if that appreciation comes, hey, wonderful. But we we just like the yield, because that’s very reliable appreciation is not very reliable. But that said, I’m predicting that we’re going to have more appreciation. I am bullish, you know, for the next year or so. Alright, it’s looking pretty good.

Now granted, something weird could happen. There could be some major event. Of course, that’s always possible. But housing is actually quite affordable. Because we look at the mortgage payment to measure affordability, not the price of the property. And guess what? We adjust for inflation. So we’re talking real dollar prices, adjusted for inflation, not nominal dollar prices. We’re all of the morons that you listen to on TV. Oh, Shane, will, housing prices are so high now. And they’re higher than they were in 2006. And guess what happened? Right after that? We have the Great Recession. Yeah, I know. I was there. I’ve been doing this for decades, longer than pretty much any podcaster out there that you’re listening to? Maybe not. I haven’t checked that. Don’t quote me on that. But I’m pretty sure it’s true. Because all the ones I know of, you know, they started in 2012. Maybe they started in like 2005. Maybe they lie about when they started. I know one of those. And I will not mention his name. Because Well, he’s a weasel. What can I do? Yeah, weasel weasel weasel. Guy lies. He lies is like a business plan. That’s funny.

Oh, yeah. Yeah. What are we gonna do? Well, look, don’t take it from me. Take it from? Well, I don’t necessarily want to say this is a credible source. Yeah, I do. Actually. This is from Reuters. And CNBC. Now that the CNBC distinction here I want to make is this. When you’re looking at a report like the one I’m about to share with you before we get to our guest, this is reliable. Okay. What’s not as reliable? Is those talking heads on CNBC? You know, the guests that come on, and they’re always talking their book. Well, Bill Ackman would be a great example, you know, or whomever, I’m just picking on him because he got like a, what a two or $3 billion bet on his doom and gloom II CNBC visit that was like a half hour long, you know, during the sort of darkest days of the COVID crisis. And he was talking his book and he made a fortune doing that. Let me tell you, it really worked. Okay. But this report says, US housing starts fell, they fell more than expected in January amid soaring lumber prices. Am I overdoing it on the sound effects yet? Maybe, you know, toward the end of the day here, I get a little punchy and I just got to amuse myself. So thank you for letting me amuse myself. All right. So soaring lumber prices, causing a decline in housing starts. Remember hi taught you 1718 years ago about packaged commodities investing. And these ingredients of the house lumber and all the other ingredients have been really in short supply, rising prices, and it is causing additional shortages in the overall packaged commodities final product or assembled commodities final product the house that people want to buy or invest in or live in, right? Okay. The report says us homebuilding fell more than expected in January amid soaring lumber prices. Though a surge in permits for future construction suggested the housing market remains supported by lean inventories, lean inventories, and historically low mortgage rates, housing starts decreased by 6% to a seasonally adjusted annual rate of 1.58 0 million units last month. The Commerce Department said on Thursday economists polled by Reuters that Reuters routers, I think it’s Reuters. That’s what I say had forecast would drop to a rate of 1.65 8 million units in January. homebuilding fell 2.3%. On a year over year basis, folks, this is the worst time for homebuilding to decline, because there is a massive structural shortage.

Okay. So, yeah, this is what we’re dealing with here, folks. So if you don’t think there is going to be additional upward pressure on price as well, then, maybe it you know what, it’s not you. It’s not you, because you get it. You’re listening to the show, you know what’s going on? You are the well informed investor. But you have those family members, and those friends, like our friend George says, Your friend and family member fred, right, that that dumb guy right in your family. That guy is clueless. And you need to tell him to stop smoking that funny stuff. Because he just he’s missing out. He’s missing out. He’s always got a reason everything’s gonna fall apart. You know, Peter Schiff is the same way. Okay. softwood lumber prices jumped a record. Are you ready for this? Oh my god. Are you ready for this? Are you ready for this? I just want you to make sure you’re ready for this. Just think about this for a moment. softwood lumber prices jumped by a record. Yes. got it done. Pay jumped a record 73% on a year over year basis in January. Now look, folks, we reported on this. Our client who is in the lumber business, who’s investing with us he came on the show and reported to you directly. we appreciated that. And guess what? There was an initial huge spike in these lumber prices because the mills were shut down due to the over the overreaction to COVID-19 84. Right. But then they came back online. And that dissipated and the prices dropped a little bit and they normalized. But now, we’re way past that. We’re talking January. These are the January statistics. So we’re a year into this COVID-19 84 thing now. Okay. And we have a 73% increase in lumber prices. Tell me how housing prices are going to decline. When there is a shortage. There are record low interest rates, when the mortgage payment adjusted for inflation prices and interest rates is cheaper than it was 15 years ago. Give or take. It’s not exact. Don’t quote me on it approximately 15 years ago, okay. And the ingredients that packaged commodities that are the ingredients of the house are soaring in price and there are shortages and builders can’t build as much as they want to meet demand. Because of these shortages of the ingredients.

Look, if you want to bake a cake, you got to have the ingredients first. If you’re missing ingredients, you ain’t gonna bake the cake. And guess what, if you got a bunch of people lining up out the door that want to buy cakes, you can’t meet the demand for the cake if you don’t have the ingredients to make the cake, home builders have the same exact problem. So tell me how prices are going to decline. I’m listening. Yeah, here we go. I’m listening. Come on. Someone tell me go to Jason hartman.com slash ask and tell me how the market is going to crash. Jason hartman.com slash ask, I want to hear. Tell me into I have a blind spot here. Everything is indicating that there is a good reason to be bullish on this market for quite a while. Yeah, I heard all the forbearance and the mortgage delinquencies. Well, guess what? I just read a report this morning mortgage delinquencies are down. The forbearance big deal. That’s like the deal of a century the forbearance thing, but don’t do it if you want to be buying properties, because they’re not going to make a new loan. But the forbearance thing is a rock and good deal. Okay, for someone who doesn’t want to invest or by, you know, getting into forbearance program, they’re just going to tack those payments onto the end of the loan. I’ll take that deal all day long. Sounds good to me. So, you know, this folks, Anyway, enough, said enough said, let’s get to our guest. Let’s hear what David has to say. Because he’s not so optimistic. I’m just gonna warn you. Get ready, get ready. He’s not so optimistic. And I agree with him on a lot of his cultural stuff. It’s a fiasco, it’s a mess. But as far as how housing looks for, you know, probably a good year, it’s supercalifragilistic expialidocious. And I can’t remember what that actually means. I think it’s good. Okay. Without further ado, here’s our guest. Let’s look at a urine review.

It’s my pleasure to welcome David Collum back to the show. He’s been on a few times. And every year he does this amazing amount of research for his year in review. This year. It’s about a 190 pages long. He is a better year Miller professor of chemistry and Chemical Biology at Cornell University, that he’s an intellectual, he researches stuff deeply. And one of the things I said to him before we started today is this year. Last year, I guess, there is no shortage of content. David, welcome back. How are you?

Dr. David Collum 17:54
Yeah, I’m glad to be back. Looking forward to it.

Jason Hartman 17:56
No, no shortage of content, right. no shortage of content. Some of its appalling, but it is appalling. It really is. So just give us your big take Dave and tell us what you really spent maybe the most time on or wrote the most about?

Dr. David Collum 18:13
Well, the two things I labored the most over and had the most difficulty with turned out to be the COVID in the election, because because everyone was sequestered and I tried to write about things people are not thinking about maybe missing the plotline on and, you know, every basement, every every house in the country had a, an epidemiologist, biologist combo expert, who are convinced they understood what they were seeing. And so how you write about them, I, I found 2020 to be particularly bleak here, not from the perspective of the COVID per se, but just social trends, and of course, financial trends, because I think the feds sending us towards the precipice. Okay, so

Jason Hartman 18:56
let’s talk about the financial stuff first. We’ve never seen more more currency creation ever than we did last year. And we’re about to see a lot more and, you know, Jerome Powell, just doesn’t seem concerned. You know, it’s like that. It’s sort of before they wanted to come at the the money creation, sort of, from an angle, right. But now it’s, it’s like the gloves are off there. It’s just, you know, we’re gonna just stimulate as much as we need to we don’t care. We’re in this environment have these insanely low negative interest rates? I mean, in real terms, they’re negative interest rates. This is a dysfunctional mess, isn’t it?

Dr. David Collum 19:40
Well, it certainly is how it goes. Kevin horseshoe said that it would would have been nice if we had entered this COVID crisis without having treated every day in the last 10 years is an emergency. So we basically entered this crisis already in a world of trouble. We had a massive corporate debt bubble. And in theory, people are talking about it. correction like the march correction, technically called a correction, you have to correct something and they corrected Absolutely not. So we have more debt. We have people are more trouble, the economy’s weaker. The word stimulus is a euphemism for, for sort of a hyper monetary policy. It doesn’t stimulate anything. This year was tricky, because it’s not like you could tell people they’re not allowed to work, and then say, we’re not going to compensate you for sitting at home. So it was just a humanitarian effort to print money this year. But But I don’t see a way out of this one. We’ve created a massive amounts of additional data. We’ve got markets that are I think, was dropping more the other day said they’re crazier than he’s ever seen in his life. And this guy’s been around for half a century. And you got Jeremy Grantham saying, for three years, he said, we’re in a bubble, but it’s not over. Now. He’s saying it’s over. So he doesn’t mean it’s like today, but but he sees it, he sees all the symptoms of the very, very end of the bubble phase. And this bubble is based on pathetically bad story. This is not a euphoric technological revolution that sound like Japan, pretending to change the world or take over the world. This is the story as the Fed won’t let the markets drop. That’s that’s a really stupid bubble.

Jason Hartman 21:21
So the question is, what do you mean when you say bubble, that word is used a lot? Like what does that mean to people watching and listening to us?

Dr. David Collum 21:32
When you say bubble? Okay, well, there’s degrees of bubble, I’m using an 18. I rounded up 20 metrics, valuation relative to historical norms and 2018. All 20 showed us within an error bar of being a factor of two overvalued, so a 50% correction. And one which stayed down would have corrected the exit. So of course, it didn’t stay down, it didn’t happen. And so I call it a bubble because I showed it last year, that was a column original. And I showed four paths and cracked to x overvaluation. One is an immediate drop. And that’s a 50% correction. The other is a horizontal, horizontal water trend. So you say you’re not going to make any money any real inflation just returned for until you sort of return to fair value. And that turns out to be 35 years, at the rate of GDP growth that we experienced in the 20th century. And then there were variations like you can take 25 years with a 20% drop or take 50 years with a 15 or 16%, nominal real gain over 50 years. There is no path to x overvalued, to historical fair value that doesn’t involve excruciating amounts of either price correction or return.

Jason Hartman 22:53
And you know, when when you say this, are you talking like broadly just all assets or you’re talking about the stock market, the s&p, what do you mean?

Dr. David Collum 23:03
Well, you know, the stock market in general but the bond markets that most overvalued bond market in history were something like 5000 year lows, whatever that means, right? heaven only knows what the Sumerians were charging but um, but bonds are so profoundly overpriced that you essentially can’t make money. Now, if you’re a bond trader, you can because you can make money you know, go and play blackjack in Vegas, too. But, but if you buy standard issue treasuries or standard issue, safe assets, inflation adjusted, you’re guaranteed to lose your what the,

Jason Hartman 23:37
I think the 30 years at 1.9% I guarantee you inflation is not a 1.9%. So the only question you face when you’re buying bonds is for how long? Do I want to lose money, not how much you can make, there’s no revenue stream left in the bond market. That’s amazing. It really is totally dysfunctional. But you know, you gotta wonder, of course, inflation is massively underreported, especially when you put into that equation, asset inflation, which of course, is not really part of the CPI. But it’s still there on the last right. But even then, inflation isn’t as high as one might expect, given all the creation of new currency, and new credit, and all these all these instruments really, how have they been able to dodge, you know, hyperinflation, which is probably what we should have in can they just keep doing it forever? Well, from long time,

Dr. David Collum 24:37
I don’t know your listeners well, but if they’ve been paying close attention to the world, they’ll be familiar with the Chaplet index, or they’ll be familiar with shadow stats calm.

Jason Hartman 24:47
I love the chapter that I’ve had john Williams on the phone,

Dr. David Collum 24:52
the other index toski or something with champ wood securities, and he produced an index that shows the inflation fit To the largest cities, which means most of the population, and he looks at 500 items, and he uses a very sort of meat and potatoes scale to measure price. So there’s no adjustment, no substitution or nothing. He just looks at price. And over the last five to six years in the 50 largest cities inflation’s according to chaplet indexes running at 10%.

Jason Hartman 25:21
So I just grabbed it really quick, so we can talk about it, specifically, New York City, he’s saying last year, or sorry, first half of 2019 12.1%, inflation, Los Angeles, 12.6%, Chicago, 10.7, Houston, 9.7, Philadelphia, 11.2, Phoenix, 7.6, San Antonio 9.8, San Diego 11.2%, San Jose 12.6, there are others, but in in even with places like, you know, Jacksonville, Florida, one of our markets where we recommend rental properties. 8.7% another one where we recommend Indianapolis 9.3%. So, you know, those aren’t all like high flying cities. Now granted, a lot of this has changed, with geography changing and what I call the 2020 Grapes of Wrath, you know, this, this mass migration out of these expensive cities, which I think is actually a good thing. And, you know, should have happened a long time ago, you know, it was just massively accelerated. But these are significant inflation numbers. And, you know, people kind of one of the things I say, Dave, is that I’m constantly telling my listeners, they’ve got to watch old movies, old TV shows, read old books, listen to old music. And when I say old, I only mean 30 years old, you know, 40 years old, not that long ago. Okay, you know what, watch stuff from the 70s life in many ways, even you when you compare it to the terrible 70s has really gotten much more meager, you know, you look at housing prices in so inaccurate how its measured, because the house inside got bigger, it got nicer, certainly, but there’s no yard anymore. There’s, you know, everybody’s on top of each other in this high density environments that they didn’t use to have, you know, the typical baby boomer home and say, Lakewood, California coming back from World War Two was on a quarter acre lot. Okay, maybe even a half acre, right. It’s just a totally different thing nowadays.

Dr. David Collum 27:20
Well, I wrote a blog, I wrote an email that was turned into a blog years ago by Elizabeth Warren. And I relate to her a story that happened that she sent is exactly the kind of thing I’m looking for. So she put it in her at her website back before she was famous. we swap emails late at night. And I happen to remember, when I was maybe 14, buying an extra large pizza at a pizzeria, you know, the Italian guys, whatever not, you know, not Domino’s, but also not some new york city pizzeria, just some guys, it was an extra large plates I bought for two bucks. I also happen to know rather explicitly that at that same a drum 14, I can carry a couple of golf bags for four hours and get paid 10 bucks. So I was paying, I was being paid one and a quarter extra large pizzas per hour, as a 14 year.

Jason Hartman 28:16
Nowadays, you don’t get that today, you don’t get

Dr. David Collum 28:19
that you’d have to be doing you’d have to be doing tricks on the street to get that kind of thing. 14 year old. So that shows you it’s it’s a it’s a combination, sort of an inflation, but it shows you what kind of spending power you had and how, when I was a kid, you’d watch TV shows, and the father would be a bus driver, or on a shoe store or something in the house.

Dr. David Collum 28:42
And they still had a family and things like that. And that’s just not even theoretically possible. Yeah,

Jason Hartman 28:47
and my mom didn’t work. And the kids went to like good quality public schools, and they had a home in a nice neighborhood with low crime. And you know, what a lot of people don’t notice to Dave is all of these things that were just being charged for that used to be free. Like, you know, parking everywhere, and, and just all of this stuff that you’re just and you’re doing all this stuff yourself nowadays, where you you just have no like breathing room or margin. I used to have a travel agent, you used to go into restaurants and get waited on now, you know, and I’m not talking COVID I’m just talking life and right before that, you know, now, you know, you go up and wait at the counter. You may they might bring you your food, but it’s like minimal service. Last week, I stayed at the beautiful iconic fountain blue Hotel in Miami. I spoke at a conference down there in Miami Beach. And you know, this is like this iconic hotel, no service, there’s like no staff around, you can’t get help with anything. These places there used to be just, there’s just no people around anymore. And this is not given the pandemic. Okay, this is before that. You’ve got these these buildings, the Hotels, and they’re like run by just a few skeleton crew people because it’s so expensive to employ people. And the people are being tracked and monitored, and they have no leisure in their jobs anymore. I mean, God forbid they work for Amazon slave driver company, you know, they can’t even rest or talk or have a conversation with their co workers without being you know, sanctioned by their boss.

Dr. David Collum 30:24
Well, the other on unseen inflation, which, which I again, several times I’ve written about it is that the depreciation rate. And so I knew a big segment this year about wealth creation, and I talk about what the GDP does not show you, you know, if you go to the movies with your family of about 100 bucks, and the experience that goes into GDP, but but it also has a life expectancy of two and a half hours. And whereas if you bought say, a Black and Decker grill or something but but we put up a refrigerator to pasture this year out of a cabin that was seven years old, when they created that refrigerator, it was huge wealth creation. Because first of all, its operation not that different doesn’t have an icemaker. Okay, big deal. But less than 70 years since I introduce reintroduce the idea of using what’s called NDP or net domestic chronic ness, that’s the cost of something minus the depreciation. And so we’ve got huge depreciation rights. And to me, those are a

Jason Hartman 31:29
What do you mean? are you just saying that products are built to have obsolescence sooner, they’re not built to last like they used to be?

Dr. David Collum 31:37
Is that right? They’re absolutely built, not the last so so I have a dishwasher, my house, which is built in 89. And the woman who cleans the house says yeah, that’s probably the original said dishwasher has been banging around for 31 years by bought a replacement, it would still clean the dishes about the same, and it would last about seven years since the estimate. So one to compare those two dishwashers in the economist like to say, well, the new one has all these buttons and gadgets, who cares, I just need something to squirt the dishes with a lot of water. But but but you have to account for the fact that I get I get out of the first dishwasher four or five, maybe 10 times the amount of usage, and that’s inflationary. If you if the automatic window in your car breaks, it’s a 50 cent piece of plastic that you’re going to end up spending 500 replace the unit required so that the repairs, how many things do you break into the repair? That’s huge depreciation, right? So depreciation, accelerated depreciation is a massive and hidden inflation, and everything we buy? Yeah. And a great example. Here’s one for you, your cell phone, miracle modern technology, right? How can you possibly talk about the inflationary effects of the cell phone? Well, first and foremost, you have to buy one every couple years, they go on a date, I couldn’t use audible on my old self, and I had to buy a new one to get it to get audible. The other thing is, and she said, but it’s miraculous, I go Yes, but it’s required. And so you’re taking a family of four, and they’re required. And so you got to buy the phones, and you got to pay for the phone service. And pretty soon you’re talking, I don’t know what 200 bucks a month at least

Jason Hartman 33:15
well, and everybody’s got to have a laptop and an iPad too.

Dr. David Collum 33:18
Well, you have to or your kids. You can’t function and account for the added costs miraculous technology, that’s all under option. How do you account for the fact that, you know, if you’re earning $50,000, you might be dropping 4% of your income on tech that you didn’t have this drop 4% your income on?

Jason Hartman 33:40
Yeah, that’s an interesting point, you know, you’re not going to be able to get an education, go to school or do anything if you don’t have the technology. And of course, then there’s all these subscriptions, we all have to you know, those aren’t counted in the CPI I used to have, you know, maybe a couple subscriptions. You know, when I signed up for AOL in the 90s, you know, that was like a big thing, whether I want to spend $10 a month or whatever it costs. Now, you got a myriad array of subscriptions. I mean, I’ve hundreds of subscriptions to things and they all have to be managed. They suck up my time. The credit cards expire, they need to be you know, it’s just, it’s just a whole different world. I mean, you know, look at I’m not a total pessimist. I do think it’s an amazing time to be alive because I keep getting amazed by this technology. But I think it’s the concept of margin. And the concept that we’re doing this all our selves nowadays, there’s no service anymore. You know, I don’t know how Dave, what is it that tech companies are excused from answering the phone?

Dr. David Collum 34:42
No, I I’m trying to get a third credit card because I want to have one card that I do just auto payments on. Yeah, that’s a good idea. So I can see what I’m being pinged on every month much more easily. Right. And I’m having so much trouble and I’m going to the same card. company so I’ve got credit cards and they’re making me jump through hoops. I’m going, dude, you already gave me two cards. Give me a third card.

Jason Hartman 35:06
It’s just an error. Everything’s everything’s run by a stupid algorithm. You know?

Dr. David Collum 35:11
No, I don’t know. I asked the question what the tech company I bet big section on this wealth creation ID and I asked the question, What are these silicon based gulyas do compared to their carbon based Goliath, Exxon Mobil US Steel, things like that. The wealth creation of the early 20s was way, way, way higher than the wealth creation of the press. So you can say, oh, what about Amazon? Well, the Sears Roebuck catalog was way more pioneering, way more pioneering, you went from buy flour and nails and stuff on a barrel and a country store to be able to order 1000s of 1000s of different things. This is 120 years ago. And so you could order it might take you two weeks instead of one day. Who cares. And so the Sears Roebuck catalog is a massive increase in wealth creation. And Amazon is incremental. So when I look at Google or Facebook, Facebook could disappear today, no one would care. No one would care.

Jason Hartman 36:07
As long as it disappeared for everybody at the same time,

Dr. David Collum 36:10
the face just scraping data to sell the advertising. It’s just advertising. Yeah, so they want to try to sell me a certain kind of mattress or a car or whatever. But it’s not in any way wealth creation, you know, it’s ever so slightly, for example, they target me better sign up with a better more appropriate car than I would have gotten maybe. But it’s just it’s, it’s their gigantic advertising budget, several attacks on the system. I don’t need them scraping data, to try to tell me what to buy because I know what to buy. I know what I mean.

Jason Hartman 36:44
Okay, so lest we complain too much. I know we got off on this track. But you know, what, what do you think is going to happen? I mean, what are your thoughts about inflation? You know, first of all, I we both agree it’s already here. But how much worse is that going to be?

Dr. David Collum 37:02
Well, so if you read some of the ancient archives and talks about the idea of inflating away debt, which appears to be the subplot that they’re doing.

Jason Hartman 37:13
This will be continued on the next episode. Thank you for listening and happy investing.

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