Today’s Flash Back Friday comes from Episode 1019, originally published in June 2018. Jason Hartman explores some recent news headlines and talks about commonality of some of the most popular economists. In addition, he talks about the Supreme Court ruling on the field of retail, the cost of terrorist protection, technology vs inflation, preventing identity theft, and the potential beginning of the demise of a massively overvalued (in Jason’s mind) company.
Jason Hartman 0:00
Welcome to this week’s edition of flashback Friday, your opportunity to get some good review by listening to episodes from the past that Jason is hand picked to help you today in the present, and propel you into the future. Enjoy.
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 1:05
Welcome to Episode 1019 1019. This is your host, Jason Hartman, thank you so much for joining me today. As we talk about a few items in the news. Yes, we’ll just do a little bit of stream of consciousness thing. And a few items in the news. There’s just some stuff to talk about, folks. So let’s dive in. Let’s dive in. So first of all, do we really think enough about this? Do we really think enough about the cost of added security due to the threat of terrorism Europe, for example, and I am leaving for Europe in just what nine days I will be on my way to Croatia, Germany. I’m going all around Europe and I will be reporting from Europe on the spot We watch the decay the decline of a once great continent. So sad. So sad. Yes. What befell Europe, you ask? Well, it was terrorism, immigration, political correctness and socialism. That was the recipe for the end. Yes. And first game socialism. That was the big one. Right? And, you know, it’s amazing how popular some really bad ideas become, for example, you know, who would you think would be the most popular economist? Would it be the economist with the best ideas on how markets should work? How people should engage in commerce together? Would it be that economist? No, no, no, not at all. Would it be VHS or Betamax in your in your old video recorder, you don’t don’t even remember what that is anymore. Do you? I know technology. It’s an amazing time to be alive. But the best idea usually loses out. Yes, it usually loses out. So we had a world VHS tapes, we had a world of PCs versus Macs. The Apple operating system built on Unix is a much better system than the das based system of Windows. We all probably agree with that. Sorry, Microsoft folks.
Jason Hartman 3:28
That’s just true. The best ideas in economics are not the most popular sadly. Well, I take that back. I take that back. The Economist who represent them are not the most popular. And we’re now an economist, because undoubtedly, the most popular system of economics around the world and throughout history, what I call the most successful religion that has ever existed. Religion, the most successful religion is capitalism. Capitalism is the most successful religion the world has ever known. And I’m saying that in a very flattering way, because I love capitalism. We don’t have much of it left anymore. But hey, it’s a very natural thing. I remember when I was in Romania years ago, and I was looking at properties actually in Romania, Bulgaria. They had just come into the EU. You heard me do podcast from there, go back and check them out. I can’t tell you which number they were, but you can go to Jason Hartman calm and just type in a search bar. And speaking of which, I know we had some challenges with our property store on the website and it is back. It is back. It is running. It is up. So we apologize for the inconvenience. It was about two or three days we were we were not doing well on the property. sore, but it’s working again. So check it out there. But if you go to Jason Hartman calm, and you use the search bar and you search Romania, for example, you can find my old podcast. I’ve done many, many podcasts from Europe and other places around the world over the years. And I will be doing some more coming up. But look at the economic system that even though it wasn’t the best one, the most popular economist, I would say, really, without a doubt, they had one of the worst systems. His system was terrible. And that is Karl Marx. Karl Marx was an incredibly popular economist. Okay. Yeah. Marxism. I’m not promoting it. It sucks. Terrible idea. But certainly, I mean, became hugely popular for a very large swath of planet Earth. For a long time, when we were so confused as I People as a human rights, right, China, communist, Russia, communist, Eastern Europe communist is part of the Soviet Union Cuba, communist, Myanmar Burma, communist, you know, so many places around the world embraced Marxism. totally freaking stupid idea. So it begs the question listeners, doesn’t it beg the question? What totally stupid ideas are we embracing today? Yes. What when we look around, and we listened to pathetic idiots like Well, hey, I just saw one on TV Maxine Waters, a total pathetic idiot. It was a fixture in our government. Isn’t that sad, right? We’ve got all these really terrible ideas and terrible people promoting them right? And in 50 years and 100 years, we look back and think what were we Frankie, what were we thinking? Right? So back to what I started on here. Do we think enough about the cost of the terrorist threat? Right? Well, the Eiffel Tower I was at the Eiffel Tower last summer. I don’t think I’ll go back this summer. You know, France, especially Paris, is pretty dirty. Nowadays. It’s scummy, you know, there’s litter everywhere. It’s not what it used to be. I mean, I remember the first time I went to France years ago, at age, maybe 22, or 23. And I thought, wow, this place is gorgeous. Not so much anymore. It’s kind of like San Francisco, and Los Angeles, right? those cities. I grew up in Los Angeles. I used to go to San Francisco all the time, in my 20s. You know, I remember taking girlfriends there for the weekend. We’d have a great time go up to San Francisco. I had a couple uncles up there. Cut out two cousins up there. And, you know, go hang out, go to all the nice restaurants and stuff. And it was great San Francisco was like a world class city. And it’s still as expensive as a world class city. But there’s lots of heroin, lots of urination in the streets. There’s homelessness everywhere, you know, leave it to the political left to destroy a place right. So that’s what we see happening. But the Eiffel Tower just got a major security upgrade. So obviously, the French are worried that their most famous landmark one of the most famous landmarks in the world so they put up these glass panels, get bulletproof glass panels, probably bomb resistant glass panels. They are 2.3 inches thick. They are 10 feet high. They weigh nearly 1.5 ton I think this is one panel, by the way, just one panel. And there are 450 of these glass panels that will compose two walls to the north and south of the monument. You know, when you go to the airport, I mean, this is the problem. This is the problem with young people, they don’t remember how things used to be. And that’s why I’m always saying, you’ve got to watch old TV shows, and old movies and read books from the past and talk to your elders, and ask them about how life used to be. Because it used to be, in many ways a lot nicer than it is today. Certainly people were much more polite, probably more ethical, God, ethics. That’s a thing of the past. I mean, it is just almost every day I encounter some ethical breach in the business world. Whether it be provider, a local market specialist who’s cutting corners or a vendor who’s cutting corners. There’s just so many sleazy operators ever anywhere. Just it honestly gets kind of discouraging. But hey, you know, I always say it’s an amazing time to be alive right. And I do believe that even though I’m a complainer, but k complainers change the world. Martin Luther King was a complainer Gandhi was a complainer, okay, complainers change the world. It’s pretty amazing. I mean, just think about the massive inconvenience going on a flight through TSA, the massive inconvenience of terrorism, the things you don’t even see how people stay at home and they’ve lost their sense of community and you know how many people are just afraid to go out around the world because of this not not just because there are in fear of it, but because of the inconvenience. caused by it, and the additional expense that has trickled into every product and service. Just amazing, just mind boggling really is. Well, you all know, you know, gee, I think I mentioned this before G is now not a part of the Dow of the Dow Industrials. Right? That index after 100 years, the last member G is now gone. They’re not in the index anymore. And you know, GE is an interesting stock. And I think there was just kind of a play on it. But under jack welch, it became so successful in so many businesses, that buying one stock was almost like buying a mutual fund, you know, now you look at you know, me, I don’t like stocks. I don’t like Wall Street. It’s the modern version of organized crime. But you know, it’s always something interesting to look at and comment on speaking of publicly traded companies that are massively overvalued. Well, hey, it’s just my opinion. I could be wrong. But maybe another one of my predictions will come true. Now, I owned two other cars, and that is Tesla, the most overrated company on Earth. Tesla. Yeah. I mean, I don’t know, I haven’t exactly investigated every company to be able to say, Tesla is the most overrated company on Earth. Maybe it’s the most overrated company in the universe. Actually, I think it’s the most overrated in the universe. Well, solar energy, which is the most politically correct and overrated source of energy in the universe, while Tesla is now shutting down over a dozen of its solar facilities, as Tesla is, you know, who knows, maybe they’ll make it through this but I think the whole thing of green energy, the electric car, solar You know, look, folks, the test to know if anything works, is doesn’t work under free market capitalism doesn’t work under free market capitalism, unless you think I’m some libertarian nut. Remember, I’m the guy who’s complaining about Starbucks and the nutritional information and how they’re poisoning all of us. And the libertarians will say, well, Jason, Quit whining. Just don’t go there. Yeah, but they’ve crowded everybody else out. Right. And, you know, there are some things that I struggle with, right. For example, I was talking to a friend of mine, about how when you go to other countries, you’re just sucking in and breathing exhaust and it’s disgusting. It’s really disgusting. I mean, you know, we’ve got these people promoting that you buy properties in these third world, right? They’re promoting all these properties as if they should have American level prices or first world kind of prices. It’s ridiculous. I mean, look, all you have to do is go to one of these, for example, Central American countries right? And I’ve been to them and you know they have their benefits. Listen, I I like some things. They’ve got nice beaches and snorkeling and scuba diving and all that good stuff. But to say that you should be investing in real estate there. I think that’s a stretch. That’s a real stretch. They’ve got these golf carts driving up and down the streets. And they’re just polluting, polluting, polluting the cars just pollute, pollute, pollute, and it is disgusting. It’s totally disgusting, obviously unhealthy. And hey, would we have the type of emission controls that we have nowadays, that frankly, I will be the first to admit, I enjoy and appreciate them? Because I like air. I hate leaf blowers. I hate secondhand smoke, and I hate how people have these loud, modified exhaust on their cars. It’s just I’m not going to go on another rant, but you’ve already heard it. So, you know, if it wasn’t for government kind of forcing the issue, it probably would have come much later. So I struggle with this right? It’s complicated. It’s complicated. I’m not pretending to have a total answer here. But when in doubt, leaned or the free market, not toward Marxism, obviously. And speaking of which, you know, the tax playing field got really leveled. Last week. Remember the big Supreme Court decision? Well, yes, yes. Yes, folks. Now the states all states have the right to collect taxes from internet sales. This is a huge game changer. And actually, I’m in favor of it, because it levels the playing field. And I get really scared about the corporatocracy and these big giant companies pushing everybody out and You know, of course, we’re talking about Amazon. Now Amazon already has a big tax program going. But of course the distinction is, is it the stuff Amazon is selling? Or is it the stuff their marketplace sellers are selling, and a lot of them weren’t charging or paying sales tax. We’ll see how this all shakes out. I think we got to give the brick and mortar retailers a little bit of a break here. the playing field is too unlevel. This is the way our capital formation system works here with these public markets. And you know, everybody throws money at Starbucks and they’re poisoning us. And so you’ll have no other coffee shops left. Everybody throws money at Amazon. I’m not talking to customers. I’m talking investors in the public markets, and they throw all the money at them. So they have all the capital formation. They can crowd everybody out. They can undercut all their competitors. It ain’t right. Now do I have a solution?
Jason Hartman 17:01
I don’t, I’m just saying it’s a problem. And it should be observed. We should pay attention to it. And, you know, probably any solution is going to be kind of incremental. Good news for women in Saudi Arabia. They can drive. Yes, they can drive. Where is the leftist outrage? Not about that because they get to drive now. But where was the leftist outrage against the stonings of people with different sexual orientations of women who couldn’t drive you know where was this right just you know, to turn a blind eye to that right just amazing really, truly amazing nonsensical It makes no sense whatsoever. So Peter Schiff right. Peter Schiff, we’ve talked a lot about him he’s been on the show, long time ago we should get him back on the show. You know I have this like love hate thing going with Peter Schiff. Right. On one hand, I think he is extremely anti And I call him the master of the soundbite, the master of the soundbite, and he has a lot of interesting stuff to share. I like listening to the guy, but I gotta tell you, he’s always wrong. Well, he’s not always wrong. That’s a figure of speech. Sorry, Peter, you’re not always wrong. You’ve been right a lot. But you know, you’re wrong about a lot of things. And it’s just this kind of perpetual by gold. fanaticism. I just don’t get it. It’s just silly. You know, our Podcast Producer Adam, who’s been on the show, he’s a client, boy, Adam and his wife Aaron and, and their kids. They got four kids, they are stocking up and building a nice portfolio of real estate. Congratulations. Keep up the good work. And Naresh, who’s been on the show, am I mentioning these folks because they’re, they’re the younger millennial set, right? We have clients of all ages, you know, in their 80s and clients down into the Early 20s. And I love seeing them buying up and building portfolios. And in doing that, like crazy, but back to Peter Schiff. Right. Oh, well, Adam, we put this in our private Facebook group for the venture Alliance and few of our team members who come up with ideas for the show and, and articles and so forth. And in the venture Alliance members are in here in our content group on Facebook. So, hey, join the venture Alliance. We’d love to have you here. But Adam, I posted his Peter Schiff article that says, a huge wave of inflation is going to engulf the planet, Peter Schiff gold news. You know, how long has he been saying that? Right? I mean, listen, I believe inflation is here. I believe there’s more coming. I believe it’s a great business plan for governments and central banks. You should bet on inflation. You should do that. But remember the big war the big mitigating It’s not even mitigating it’s way more powerful than mitigating. The big factor at war with inflation is what I’ve told you before you know the answer. What is it folks? I can hear you out there? You’re shouting, Jason. It’s technology. Yes, you are right. Thank you. Thank you listeners for shouting that one out. Its technology technology is at war with inflation. Because because technology is so d flesh Canary, and the war is between technology on one end, the deflationary force massively deflationary force and the massively inflationary force of bad poorly managed governments spendthrift governments, and central banking cartels. And so those are the inflationary forces who will win who will win, nobody knows. Stay tuned. We can only observe box If you ask me for my money for my investments, you want to align your interest with the most powerful forces, the human race has ever known governments and central banks, governments and central banks.
Those who have understood that the paradigm has changed, and that’s perhaps we need to do something that’s counterintuitive. Like being in debt, which obviously we have all been told is a horrible thing. You know, maybe it’s those few early people who understand that and witness that. So perhaps the more sensitive the people who are more sensitive to risk or or more risk averse or I don’t know what the perfection is. But the canary in the coal mine If you want and, and this is perhaps, you know, what, what you are and what you have been
I am surprised, Jason right now that’s
basically what we are saying is not yet more mainstream. I’m not saying that, that this should be, or that this should already be what everybody’s thinking that but that so few people I thinking that or at least that that’s so few people are vocal about it. So perhaps it’s just a well kept secret and those who know we don’t want to talk about it but I’m very surprised because because this is so much against the mainstream of what you’re reading in the paper.
Jason Hartman 22:40
You know, we talked recently about identity theft, hey, there’s a lot more to the identity of that thing. Then what I mentioned before, I was just sharing some good practices by a cross cut shredder, shred every thing. I was going through my stacks of mail, I can’t believe we still do With stupid paper mail, folks, it’s 2018. Maybe our president maybe Trump will privatized the post office. You know, that’s in the news lately. Have you heard? That would be good. Maybe FedEx will buy it. Maybe ups will buy it. Maybe the postal employees will buy it. Don’t count on that one. Whatever. It’ll get privatized, possibly, right. That’d be good thing. Why we are even dealing with paper mail in 2018 is beyond me. But hey, we’re there. And with paper mail, you got to shred everything. You’ve got to shred your envelopes. Do the envelopes you get have the logo of the company that holds your mortgage or your bank account or your credit card? I mean, any clue any clue? You know, folks, you ought to listen to one of these audio books or read one of these books by Kevin Mitnick. Do you know that name? I want to get it On the show interesting interesting guy. Of course, I also want to get what’s his name escapes me almost hired him to come and speak at our one of our conferences, and maybe I will hire him in the future. And it is Frank Abigail, who was the Catch Me If You Can criminal, the criminal who spent time in prison and you know now these guys they well they both spent time in prison. But hey, you can learn a lot from these crooks who turned good. And now they’re working for the government, right if they’re consulting for the FBI and, and various government agencies and stuff, you know, to hear their stories of this. Here’s the concept they talk about. And this is why you need to shred everything and be very careful about your identity and not use your birthday your kid’s birthday. your spouse’s birthday, your pets names is your passwords. You got to make a long, complicated passwords and change them and you’ve got to shred everything and you’ve got to be wary of people. call you up and ask you things and just giving out clues to your life got to be careful of what you put on social media. There are so many ways that these little breadcrumbs that you leave around can be socially engineered. Okay? These people that engage in this practice of social engineering, with a few little bread crumbs can assemble a lot of information. You’d be just surprised. It’s really scary stuff. go see the movie, Catch me if you can. That was a good movie from 20 years ago, or 15 years ago or whenever it was out. Look at Frank appid little story, you know, yeah. Okay, so one of my childhood loves. She has fallen on hard times. And you know, this goes to show you how it must be an incredible burden, to be famous, to be rich and famous. You know, it all looks good on the outside. But you know, that’s got to be pretty tough. evidenced by all of the rich and famous people who end up addicted to drugs addicted to sex, committing suicide, you know, whatever they get their addictions they have they have problems, hey, look, they’re just people, but they have an extraordinary pressure on them. That is a pressure that doesn’t exist for the rest of us. You know, we look at these suicides recently Kate Spade, of course, Robin Williams was a couple years ago, who all there were a couple others just recently, I mean, really something and now, my childhood crush, Heather Locklear, she got arrested and then she got released from jail and then she was hospitalized from an overdose. Oh, gosh, I mean, Heather, seriously, come on. Wow. That’s just sad stuff. Sad stuff. We talked a lot about geo arbitrage and how nowadays you can really choose where you want to live. Not everybody can do this. But if you can Make a conscious choice and make a conscious choice to live in a higher quality location with a lower cost of living, and either low or no state income tax. Now, of course, I’m talking to the Americans, right. But if you’re not American, we have listeners in 165 countries. And I appreciate you listening from around the world. This applies to you do, but I don’t know the ins and outs as much as I do for us citizens, right. What amazed me what really amazed me in 2011. And I’m going to sort of say this the way Ronald Reagan said it when he gave that famous speech at the Screen Actors Guild, and he left the Democratic Party and it became a Republican, and it’s a famous speech, you should look it up. I’m sure there’s an audio of it online, if not a video. It’s a really good speech. It’s gold, you know, it’s really From, I guess the 60s, right. And Reagan, of course, was this phenomenal speaker the great communicator. Here was his famous line. It’s brilliant. And I say it as it applies to California. Reagan said, I didn’t leave the Democratic Party. The Democratic Party left me. Well, I say I didn’t leave California, California left me. I mean, that was my home state for virtually all of my life, except for when I was a little kid. I loved California. I mean, when I moved to Orange County, and when I moved to Irvine, California, I thought it was God’s country. And hey, Irvine, still a pretty nice place. Newport Beach is a pretty nice place. But overall, the poor state of California, I mean, it is amazing to me how I and my all my friends. We lived in such a bubble, you know, in these sort of wealthier enclaves of California, but the amazing thing is, so The wealthy enclaves really aren’t very nice anymore. I mentioned San Francisco. So I’m going to play a little video for you here. This is great gut field on the news, talking about California, and how it is the worst state in the union and lays out a few reasons. It’s just a short short video here. But what’s interesting is that, you know, folks 13 years ago, 14 years ago, yours truly Yes, Jason Hartman was giving seminars and talking on the radio all the time, about how you can tell a lot about an area by the cost of renting a u haul truck in either direction. Well, what do you know, I guess Greg just caught on, because maybe he came to my seminar or listen, maybe he’s one of our podcast listeners, because he’s using my example.
Jason Hartman 29:57
Anyway, it’s fine, but this is an interesting Video, have a couple of comments and we’ll wrap it up for today.
It’s a case where being number one means really your number to a new study ranks California dead last of all the states in quality of life making it tops at being on the bottom. States were ranked on everything from education to opportunity from infrastructure to crime. But California scored low for one simple reason. It’s impossible to live there unless you are super rich, or homeless. Then come one come all, but just asking a u haul dealer renting a truck to go from San Francisco to Dallas will cost 3200 bucks, the return trip only 1100. That’s our 180% surcharge. And it’s based on a truck shortage in California, because so many people are leaving one left wing city to a more pragmatic, affordable one. So maybe California is leaving California. They’re the real dreamers. But anyone who’s been to LA knows the ugly truth, it’s turned into a post apocalyptic wasteland with 55,000 homeless in that county alone. Massive encampments have an envelope Skid Row under overpasses and streets nearby. sf isn’t much better spending millions last year on cleaning up human waste left on its streets by the homeless. It’s odd. We’re living in a time where Hollywood embraces dystopian fiction. They spend millions trying to recreate the look of life after nuclear war. I could save them some money, just grab an iPhone and drive downtown.
Jason Hartman 31:27
Well, is that not sad? It saddens me. And of course, our California listeners, California clients, you don’t live in areas like this. I mean, he did mention San Francisco. And that’s the most amazing one in a way because it’s super expensive. And it has all these quality of life problems at the same time. Now, you know, there’s lots of little enclaves in San Francisco. If you live in Russian Hill, you’re not dealing with it. But hey, I was right in Downtown I was on van es and I stayed at a very nice, elegant hotel. You know, this homeless guy bumped into me intentionally almost knocked me over. People were urinating in the streets. I mean, the first question is, and I’m not uncompassionate to this, why, why do we have all these homeless people? I mean, what is wrong with the economy, the system, the government? Why is that such an incredible problem? I used to live in the Socialist Republic of Santa Monica when I was a kid. And when I go back there now it’s just a homeless people everywhere.
What happened? I mean,
Jason Hartman 32:39
wasn’t like that when I was a kid. Were they just somewhere else? Or are they just growing in numbers? And is it just a sad, sad state of affairs? Very difficult problem to solve? I don’t know. We will continue to explore these and many other issues on the show. But that’s what we do. That’s the business. We’re in folks. We are in the business of providing housing to people. And as I’ve said for quite a few years now, and I keep saying it because it keeps being true. The demographics coming at the rental housing market over the next 10 years are nothing short of phenomenal. They are nothing short of phenomenal. So, get your real estate investments. Go to Jason Hartman, calm and enjoy and profit from this incredible future and the most historically proven asset class in all of human history. And be sure to join us in Hawaii. The first week of November. We’ve got two awesome events coming up a brand new conference called profits in Paradise, a two day conference in beautiful Waikiki Beach. Or do I say on beautiful Waikiki Beach? I think I say on that was the proper thing to say. And then we’ve got our venture Alliance mastermind retreat and That is right after the conference, and that is in beautiful, quiet. I’ve never been to Hawaii, and I cannot wait to go. You know, it’s great to visit these places and not live in them and have to pay taxes in them. So there you go. All right. Happy investing everyone, Jason hartman.com. We’ll talk to you on the next episode. Thank you so much for listening. Please be sure to subscribe so that you don’t miss any episodes. Be sure to check out the show’s specific website and our general website heart and Mediacom for appropriate disclaimers and Terms of Service. Remember that guest opinions are their own. And if you require specific legal or tax advice, or advice and any other specialized area, please consult an appropriate professional and we also very much appreciate you reviewing the show. Please go to iTunes or Stitcher Radio or whatever platform you’re using and write a review for the show we would very much appreciate that. And be sure to make it official and support scribe so you do not miss any episodes. We look forward to seeing you on the next episode.