On this Flash Back Friday episode, Jason Hartman hosts Doug Wead who served as a senior adviser to Ron Paul in the 2012 Republican Presidential Primary as well as advised Ronald Reagan and George H.W. Bush. They discuss The Liberty Networking Project and how Wead believes liberty is the greatest path to prosperity. Doug also talks about some of his experience advising former US presidents and running campaigns.
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 creating wealth with Jason Hartman. During this program, Jason is going to tell you some really exciting things that you probably haven’t thought of before and a new slant on investing fresh new approaches to America’s best investment that will enable you to create more wealth and happiness than you ever thought possible. Jason is a genuine self made multi millionaire who not only talks the talk but walks the walk. He’s been a successful investor for 20 years and currently owns properties and 11 states and 17 cities. This program will help you follow in Jason’s footsteps on the road to financial freedom, you really can do it. And now here’s your host, Jason Hartman with the complete solution for real estate investors.
Jason Hartman 1:08
Welcome to the creating wealth show. This is your host Jason Hartman and this is episode number 315. I’ve got our investment counselor Sarah here. You’ve heard her on this show before. And we just got back from our Memphis distressed property tour and creating wealth boot camp there. We did last weekend. Sarah, how are you?
Good. Thanks for having me.
Jason Hartman 1:26
Well, my pleasure. And boy, today is going to be an interesting show. Doug weed is our guest today when we get to him in a few minutes. He’s a presidential historian, philanthropist, public speaker, really interesting guy. He worked as a special assistant to US president george HW Bush. And he’s an author of more than 30 books. So he’s got a lot to say about economics and the political environment and how it influenced economics and history and it’ll just be a really interesting guest today, so stay tuned for that. We’ll be back with Doug in a few minutes here, but first, I wanted to just debrief on a couple of things. Number One the tour number to talk about that old malady that affects myself a lot. I have this melody and I am trying to overcome it and recover from it. I get it once in a while, acutely sometimes, and it’s very costly to me. And that melody is called the paralysis of analysis. So I want to help our listeners overcome that one if at all possible. But first, let’s kind of talk about the tour and just get your impression, Sarah.
Yeah, it was a great tour. A lot of familiar faces, some of our repeat clients. We love our repeat guests. They’re so fun. You know, we had a great night on the town Saturday night, got to see some good old Memphis culture had a great dinner. Of course, we had the boot camp Saturday all day, which was great.
Jason Hartman 2:43
And the big surprise was we went to one of your favorite restaurants which is Benny Honda’s and that was, that was a great dinner, you know, very entertaining. I’m always afraid those chefs will drop the knife as they’re throwing it around in the air and, and then when we got there, we heard that there was actually another Benihana is right around the corner. Burton town. So, you know, those sesh one girls, there’s a lot of flames and knives being tossed around. It’s maybe a little bit risky, I don’t know. But we fared okay. It was a great dinner.
I love to live on the edge.
Jason Hartman 3:14
Well, you’re not very risky. You don’t take too many risks when it comes to your investments. I think all of us at the company are pretty conservative about things at least money wise, conservative is good, but you kind of make sure you don’t become so conservative that you miss opportunities. Here’s an example I was kind of thinking about this paralysis of analysis thing and you know, I see it in my life how over over the past years, it’s it’s cost me so much money. And the listeners may know that one book that I really like is by Michael Masterson. That’s a pen name. It’s not his real name, but it’s called ready fire aim. And I’ve mentioned it before on the show. And I think it’s a really good concept and there’s some some really interesting things in that book that talks about how people that follow kind of the traditional path in life, how they usually get Left Behind were people that just kind of jump in and, and do things and make stuff happen. More happens for them and and you know, when you look at it from an investment standpoint, when you look at income properties, the investment of course, I talk a lot about the concept of inflation induced death destruction, and how inflation destroys the value of our savings, our stocks, our bonds, and our equity in real estate actually is attacked by inflation as well because it’s denominated in dollars. But when you look at what’s going on right now, I mean, it’s a great example, Sarah, because we all pretty much agree that property in all of our markets is appreciating in price. And as it appreciates, that represents an urgency issue, a reason that people really need to treat their investments with some degree of urgency because of the lost opportunity. And the fact that they will just have to pay more later. That’s the likelihood of no one can predict the future with certainty, but the likelihood is they will have to pay more later and as such It’s not just that if they have money in the bank or in stock accounts or bond funds or any of that stuff, it’s being attacked by inflation. So let’s take an example here, let’s say that an investor has and depending on where you are in life, you can add a zero or remove a zero. I’ll just use a number. To give you an example. Let’s say you have a million dollars in liquid tradable assets, whether that be the bank stocks, bonds, mutual funds, whatever, anything that’s relatively liquid, so you’ve got a million dollars, and most of us would agree that the inflation rate now is about 10% annually. And as such, if it’s 10% annually, then let’s just round it off for round number sake, a million dollars loses $100,000 annually to inflation, that that money has debased and you’re losing $100,000 a year, okay, and that’s about $8,000 per month. Now, let’s combine that with the fact that the property prices are increasing and the numbers are all over The board. But just to use round numbers, and it may not be this high in the market you’re looking at it may be higher, it just depends. And this won’t be sustained. But I’m just giving an example understand it, the numbers can change, but the math, and the concept is the same. So let’s say that the property is increasing in price by 10% annually. Well, even if you make a mistake, and jump into a not so good property and say the property, you buy 10 properties for that $1 million. Well say that the overall debt service on those 10 properties is $1,000. a month, for example, well, that means you would lose $10,000 per month, but when you combine the inflation rate causing the prices to increase and the value of the money that is in your stocks, bonds, mutual funds or bank account to decrease, it’s a double hit. You’re basically losing 20% annually, or about what is that about $16,000 per month in the fact that you miss the you have the opportunity cost of the money that is being attacked by inflation and the opportunity cost of the property that you didn’t buy versus a terrible mistake, or you buy 10 properties, and they’re all vacant. I mean, that’s like a worst case scenario. So as such, I mean, it really makes sense. Sometimes there is real wisdom and action. And that’s my point of saying that your thoughts are
Yeah, no, I definitely. I definitely agree. I mean, there’s there’s definitely a cost to waiting and some investors have a target number, you know, for example, I have to get 15% cash on cash, but if it takes you a year to find that property, I mean, you could have gone with something with 12% cash on cash and dentist as well.
Jason Hartman 7:47
Yeah, absolutely. And, and the the the scary thing is, if the point and look at I’ve been doing this a long time longer than I want to admit. But the scary thing is that the inflection point We’re in Now, with this government spending starting to create significant inflation with a fake recovery. And I agree with some people that this is a fake recovery. Some people think it’s a real recovery. I don’t. I think it’s an inflation induced recovery and that we are at an inflection point now, in my opinion, and as such, it only gets worse. I mean, look, folks, the RV ratios have been declining for two years, the cap rates have been declining for two years, the cash on cash return has been declining for two years, the overall ROI or return on investment has been declining for two years now. It was better two years ago. Don’t you love these promoters that say, oh, there’s never been a better time to invest in real estate. Sure, there was two years ago was better, but the likelihood is it’s only going to get worse. And you know, Jim Rome, one of my favorite speakers and the late Jim Rome, and business philosophers is he says something about discipline and it really applies the same way because when we’re investing we’ve got a discipline. ourselves to be willing to take a risk. And as we’re doing this, Jim Rome statement applies. He says that the pain of discipline weighs ounces. And the pain of regret weighs tons. And I really fear that a lot of people that don’t act now are going to have serious regrets. And you know, I was saying this two years ago, I was much less confident about it myself, but now I think it’s pretty clear what’s going on. So the Michael Masterson book if you have if you suffer from the malady of paralysis of analysis, I would recommend you read ready fire aim by Michael Masterson. I’d love to get him on the show, because I really did enjoy that book. And another thing is way back on podcast number 43. I shared one of my favorite poems by augmon Dino and it’s called seeds of success in the book mission success which is an out of print, fantastic book, if you can grab a copy on amazon.com and read it. It’s It’s very short. It’s very good. It’s just an excellent book. You’ll love it. But one of the things he he says in the poem, and I’ll just read a couple of passages, he says, I will live is all good actors do when they are in stage. Only in the moment, I cannot perform at my best today by regretting my previous x mistakes, or worrying about the scene to come, I will embrace today’s difficult task, take off my coat and make dust in the world. I will remember that the busier I am, the less harm I am apt to suffer, the tastier will be my food, the sweeter my sleep, and the better satisfied it will be with my place in the world. And folks, at some point, this is not an exact science, it’s a bit of an art. You got to just jump in and do it. And that’s the message for today. It’s not the message of our guests. We’re going to talk about something completely different when we get to our gas, but I just wanted to say that to people because you are losing money every single day. You’re losing in three ways. You’re losing the return. Non investment of the properties performance you’re losing because the money that you have that is sitting on the sidelines, even if it’s in stocks or bonds, I say that’s the sidelines, certainly in the bank is being debased and attacked by inflation, it’s diminishing in value, and the property prices are increasing. So you’re getting a triple whammy. Whereas if you invest in it, even if it doesn’t go well, you’re probably going to do better than that.
Let’s Let’s touch real quickly, Jason on on equity, because, you know, I get emails from people stating or asking for properties with instant equity. And, you know, we’ve talked about this before and I think, you know, now’s a good time to, to, you know, take advantage of that. However, we believe that the property is worth you know, what you pay for it.
Yeah. So, you know, instant equity, what are your thoughts
Jason Hartman 11:48
we don’t look at there’s there’s a lot of great questions here. There’s a lot of promoters out there who are promoting properties that are below market that have instant equity. We don’t do that even though I haven’t No doubt that many of our properties do really have instant equity. We’ve had many cases where properties have appraised. And not that the appraisers, right because the appraisers come in low, they come in high, they’re all over the board, but I’m just mentioning it that ever appraised for more than our clients are buying it, that’s pretty rare because the appraiser knows what they’re buying it for. So they rarely go above that, why take a risk and say it’s worth more, that’s just not prudent from the appraisers perspective. But certainly we’ve had many times where the insurance company who’s insuring the property says it’s worth more than it is where they will make the the buyer insure it for a lot more than the purchase price, but we just won’t advertise that way. We won’t say that a property has instant equity, we just, we just won’t do it.
I mean, and even if it does, that doesn’t mean you’re gonna be able to happen to that equity right away. You know, there’s a cost to doing a cash out refinance, if you’re going to sell the property, there’s a cost to sell the property, you know, so usually you have access to that equity, you know, after a period of time and yeah, yeah,
Jason Hartman 12:57
usually doesn’t work but what I can certainly say is if, if you’re buying the property, and that depends on the market, this does vary because construction cost varies from Market to Market. But if you’re buying the property below the cost of construction, which generally is $75 per square foot, in, you know, most of our markets, it’s somewhere around there might be $85, a square foot, it might be $70, a square foot might be 65, even. But if you’re buying the property below the cost of construction, then you have some built in upside for sure, in my opinion, because you have what we call regression to replacement cost. And that’s not really the same as appreciation, we coined that term regression to replacement cost. So just when the property is able to sell for the cost of constructing it, that’s not the same thing as appreciation, appreciation is a different element. So right there, I would say you have built in equity.
Sure, sure. And I honestly think that you know, buying below the cost of construction is is going away as we see new construction, you know, popping up And
Jason Hartman 14:00
that’s one of the things I didn’t mention, I said that the ARV ratios are worse than they used to be. The overall return is worse, the cap rates are worse, the cash on cash is worse. Everything is less desirable than it was two years ago. Okay, the deals are just they just cannot be produced today, like they were two years ago. And the same is true of being able to buy below construction costs that is fading quickly. If you can do it. Hey, and you don’t take action? I bet you’re going to have some serious regrets later. The world belongs to those who take action. It’s been said that life is not a spectator sport. You gotta jump in, you gotta do stuff or stuff doesn’t happen. Hey, we’ve got to get to our guest, Sarah and I know we’ve both got to run to various conference calls here. But let’s talk about one property real quickly. And then let’s let’s get to our guest today.
Good deal. So I’ll give you the rundown. I know you have it in front of you as well. So this property is in the Austin market. Austin, Texas. You mean awesome. Texas.
Awesome, Texas. Place.
Yeah. And it’s a beautiful little property. It’s got a great curb appeal. If you’re interested. You know, you can Email me and we’ll send you the the link to the Performa but it’s got a great curb appeal was built in 2010 purchase prices 150 5000 estimated around 1475 a month. Now the cost per square foot on this and I were just talking about that 90 bucks a square foot. So, you know, it’s still less than hundred bucks a square foot.
Jason Hartman 15:17
You’re in Austin. I mean, Austin is a premium market. It’s a creative class city. It’s like Denver, it’s expensive. You’re not going to achieve the kind of numbers in Austin that you will insane Memphis or St. Louis or Indianapolis or many of our other lower price markets. But this is a market with serious appreciation potential. Austin is a very desirable city. No one would deny that and look at the positive cash flow here projected it almost 20 $100 annually. And Sarah, let’s look at the overall return on investment here. 30% annually is the performer. Yep. And it’ll take you about 44,500 to buy this property. And folks, I mean look like I always say if it only goes half as well as expected, and you make 15% annually Are you going to be this pointed. You know, that’s still great. It’s a lot better than you’re going to get probably anywhere else.
Yeah. And one thing to think about on this particular property is that it’s newer construction 2010. I mean, that was very long ago. So you’re probably not going to have a lot in the way of maintenance on this property, which is one of the things I love about my Houston property that that we bought brand new. I’ve had like $600 in maintenance in six years. Now, I probably got a little lucky there. But it’s, it’s a nice, passive investment. not totally passive. But, you know, it’s not very hands on, like some of the older construction deals we see sometimes.
Jason Hartman 16:34
Yeah, and I submit to everybody, there’s no such thing as a passive investment. Okay, you gotta pay attention to everything you do with your money. That’s the bottom line, but some are more passive than others. And we try to make it as passive as possible when you’re a direct investor and you retain control. So you can’t get ripped off by a bunch of crooked CEOs, investment bankers, boards of directors, and all the middlemen on wall street that are taking their their cut off the top. Okay, Sarah, thanks for Let’s wrap up and let’s get to our guest. And we will be back with our guest in just less than 60 seconds. Remember, you’re listening to flashback Friday.
Jason Hartman 17:11
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Jason Hartman 19:20
It’s my pleasure to welcome Doug Wead to the show. He’s a presidential historian, philanthropist public speaker. And he was special assistant to US president george HW Bush, and an author of more than 30 books, including New York Times bestseller, all the President’s children triumph and tragedy in the lives of the first families, just a guy with a wealth of knowledge and involvement and very engaged in the Liberty movement. And it’s a great pleasure to have him on the show. Doug, how are you today?
Doug Wead 19:47
I’m doing great. Thank you, Jason. Thank you for having me on your great show.
Jason Hartman 19:50
Well, the pleasure is all mine. And I always like to give our listeners a sense of geography. Where are you located today.
Doug Wead 19:58
I’m seated in my library. brewery in my home outside Washington DC and the Virginia Fox country
Jason Hartman 20:05
antastic. Well, good, good stuff. Well, tell us a little bit about your background and all the stuff you’ve done. I mean, working with George HW Bush, and I think you work closely with Ron Paul and Rand Paul as well, and just want to hear more.
Doug Wead 20:19
Well, I, I got involved in philanthropy and and helping the hungry and trying to feed starving people, and launched a couple of programs helped co start the charity awards in Washington, DC. And in the process met, a number of presidents ended up writing a book for Ronald Reagan, his campaign biography, nobody thought Reagan had much of a chance of winning the nomination back then. So no major New York publisher would take it but a publisher across the
Jason Hartman 20:57
That’s amazing. Looking back One would think it would be tough for Reagan when he was one of the most most revered presidents in modern history. I would Yeah.
Doug Wead 21:06
1979 my agent took it to all the major New York publishers and, and he got back to me and he said, they don’t think he’s gonna survive the Iowa caucuses. I said, What do you mean? I mean, you know, George Bush was Ambassador bush then was contesting and eventually won the Iowa caucuses. I said, I think he’s got a great organization there. They said, No, no, no, no, no, you don’t understand what we mean by survive. We don’t think he’s gonna live through the Iowa caucuses. He’s an old man. So when I wrote the book, Jason, it was the only one available he was president, the United States. And there was no book available, but mine so by default, it It sold real well, and I got to start, but that’s how I began to meet these people through the work. I was doing the charities I started I co founded Mercy Corps, and they’ve now given away $2 billion in food. Medicine around the world. And so through that I met the bushes after the Reagan’s. And that’s how I got involved in public life.
Jason Hartman 22:07
Fantastic. And what have you noticed and learned over the years? in doing that? I’m sure there’s so many things. It’s like what a broad question, you know, how can you How can you even answer that easily but, you know, just some of the major aha was in in political life and Ben public policy to what we should be doing where we’re going. I want to dive into all this stuff today with you.
Doug Wead 22:27
Well, my major aha was in watching Ron Paul, Dr. Ron Paul and the debates when he was bringing up the whole issue after 911 the fly there was 911 in the first place, and how America is perceived around the world, and it isn’t very good. And I felt like I was the only person in the world that felt that way. I told my wife in 1998 when a poll came out, showing George W. Bush is the front runner for the present. nomination. I said to my wife, if he wins the Republican nomination, we will go to war with Iraq and we will kill Saddam Hussein and we will kill Saddam Hussein’s two sons. And I because Adam is sane and tried to kill his father had ordered the assassination of his father in Kuwait at the commemorative celebration of the victory there, and I concluded, I don’t think that’s a good reason to go to war. I don’t want my nephew dying. I think it was awful. They tried to assassinate former President Bush but I don’t want my nephew dying for war about that. So when I saw Dr. Paul, challenge the war in his in that debate, I spit the Cheerios through my nose. I was watching it The morning after the retake eating bowl of cereal for breakfast. And I thought Who is this guy? Boy, he’s got guts. And until then, I thought I was All alone in the world.
Doug Wead 24:03
So that was my aha moment.
Jason Hartman 24:05
So so you’re really referring to the blowback issue then right?
Doug Wead 24:08
Yeah, I am. But once Dr. Paul is a great provocateur he, he says these odd weird things like once I heard him say, the Federal Reserve spends more money than the US Congress. And I thought, huh, What is he talking about? What does he mean? And when I finally figured it out, it drove me to Google, which that’s what Dr. Paul does. He drives you to Google. And then, and then you discover it for yourself. And you have the pride of authorship and the pride of self discovery, and that’s why his followers are so fanatical. When I studied it myself, I realized what he was talking about, and I thought, wow, this is pretty amazing. I I know most of the members of Congress and I follow their ups and downs politically and their election with bated breath on election night and I don’t even know who the members of the Federal Reserve They’re spending more money than the US Congress. So it was the whole process has been an education for me.
Jason Hartman 25:07
Yeah. Well, the Federal Reserve is, in my opinion, a scam central banks in general. All they do is ultimately impoverish people. They do it slowly through inflation by basically just chipping away at their wealth. Sometimes they do it very quickly through inflation depends to what central bank you’re talking about. But it’s just crazy that Ron Paul couldn’t get an audit of the Fed. That’s just nonsensical in in today’s world, that something so big and so powerful can be just hidden from view. And we don’t know it’s real motivations. It’s obviously a private corporation. The Rothschilds are the wealthiest family on the planet, by far. I mean, when we look at, you know, Bill Gates and Warren Buffett and Carlos Sims, those multi multi billionaires. That’s nothing compared to the central banking cartel. Is it?
Doug Wead 26:01
Well, it’s, it’s more than astonishing. It’s tragic. I mean, George W. Bush went into kind of write the wrongs and complete some of the leftover business of his father. And one of those was read my lips, no new taxes, and then taxes were raised. And so for George W, it was very important that he reduced taxes and he was able to drive home the this idea of the Bush tax cuts, we still talk about the bush tax cuts, and it’s so ironic and so tragic because the war in Iraq, we now know it’s somewhere around $1.7 trillion now and keeps climbing. It wiped out the wealth of the nation. He so he didn’t raise taxes, but he took away the value of our homes. We it was wiped out. The net worth of millions of Americans was lost. Their IRAs were ruined. We talked about the destruction of the middle class. And now we’re beginning to understand how this impacts the poor, how the poor are devastated by inflation and by these hidden taxes of monetary manipulation. But I also point out that a lot of the rich got wiped out. I mean, there were a lot of people that were wealthy that had their retirement in place, and real estate, all that working for them, and they’re broke, they’re living off their kids, and it was all wiped out. So the wealth of the nation really was just wiped out.
Jason Hartman 27:31
Here’s the question, though. First, really, maybe if we just back up from that a little bit. Maybe the real thing to consider and this is open to debate is was the wealth really there in the first place? Was it or was it just really smoke and mirrors? Well, I like to try to make the distinction between what I call the real economy and the fake economy, which is the the Wall Street economy and the financial services economy, which is just smoking mirrors. So I always kind of question. How do you define wealth, the same amount of goods were in the world before and after the financial crisis that didn’t change. There’s the same amount of gold, the same amount of oil, the same amount of real estate. It’s all there. It’s just what we how we count it and how we evaluate. So I don’t know it’s just sort of an interesting thing to ponder you know, maybe it’s a little too theoretical and esoteric, but but you know, I don’t know I just kind of find it interesting. Uh, yeah,
Doug Wead 28:26
no, I think it’s it’s very, very central a wealth of course, is what is in demand. That’s what wealth is. And that’s why wealth is often been gold because it was in demand as an exchange it would was in demand in the Middle Ages in Europe, and especially in England. And so a man who stole from another person’s woodpile was hung in the American West, a man who stole another person’s horse
Jason Hartman 28:54
was hung whatever is most in demand.
Doug Wead 28:57
It’s what’s in demand that drives and The British Empire became extremely wealthy because it used its colonial labor to extract God’s wealth from the soil from the ground for lumber, timber, tea tea, and exchange it on the way those ships came from all over the world and brought that raw, those raw materials that wealth to Great Britain and for a long period of time, it was 400 years anyway, it was economically dominant in the world because of what you just described real wealth as opposed to the illusions of markets.
Jason Hartman 29:37
Yeah, yeah, absolutely. You know, I just, I wonder if America was really ever as prosperous as anybody thought it was. I think it’s definitely prosperous when you look at real things when you look at hard assets, but so much of it is just kind of fiction. I love it. When when people in the Wall Street world they talk about financial innovation. Every time I hear that, Doug, it scares me because Another God all we need is another financial innovation. You know,
Doug Wead 30:06
America is wealthy because it has power and if you’re in the neighborhood and you’re the only person in the neighborhood with a gun and it’s a time of anarchy, you have power and we have the gun we may lose it but right now we have the guns so and and we account for what is it 43% of the world’s military expenditures. We have 50,000 jets. I think our nearest competitor is China with 5000 jets. It is a real scam of the Pentagon contractors are making a lot of money.
Jason Hartman 30:39
Yeah, we isn’t it unfortunate though, that as long as central banks, and the military industrial complex is profiting off war. We’re just we’re just unlikely to ever have peace, aren’t we?
Doug Wead 30:49
Yep, there’s a motive for it isn’t there?
Jason Hartman 30:51
I remember a great book that I read a long time ago called the greatest management principle in the world, and the Dead Sea just sum up all of life. Pretty much In this statement, he said what gets rewarded gets repeated. And then that’s the problem with our social welfare systems. And the problem with the the peace problem in the military. I mean, what do you think of what’s going on geopolitically nowadays with Iraq and North Korea? Are these enemies in quotes? Are they sort of almost produced by us potentially? Or, you know, are they real? I just got I always questioned myself about that,
Doug Wead 31:28
you know, I love history. So I read a lot of history and your life is too short. You can’t you don’t have enough years to live to read all of history. So it’s, it’s a at times it can be a frustrating pursuit. But it’s so shocking to see us repeat. If you go back to the Nuremberg trials. Larry Jackson, our prosecutor who was Jewish, he was very talented attorney and prosecutor and Supreme Court Justice and So he goes back to argue, at the Nuremberg trials. And he spends the whole day on the blood purge and June 30. When Hitler took out the terrorists, the the essay, the fear that the military in Germany was it, this would be a second revolution. And the essay would seize power from from Hitler. And so Hitler put them down and actually fired the gun killed. One of the SAE leaders and the rest were arrested and approximately 300 of them were killed and called the night of the long knives and or the blood purge, June 30. And so at the Nuremberg trials, he brought this up to show that that Hitler had had violated his own constitution, his own laws to kill a person and the nation applauded it. And even many people around the world applauded it because he was putting down Possible terrorists and another revolution in Germany. And that’s what comes to mind when we are now. We’ve authorized our president or we haven’t authorized him. But but but
Jason Hartman 33:11
he’s taken the power. You’re gonna mention the drone killings, right? Yeah, he’s taking the power to kill people. I mean, just a few years ago, you had to have a judge’s signature before he could bug your phones. Now he can kill you. It’s stunning. It is stunning. It’s amazing how quickly the freedom and due process has it’s just evaporating, isn’t it?
Doug Wead 33:32
Yeah. And Larry Jackson’s point, the Nuremberg Trial, he spent a whole day saying this was the slippery slope. When, when, when Hitler without a trial, executed someone, and the whole country applauded it. This was the slippery slope. And I think that now that’s a good lord. Where are we?
Jason Hartman 33:54
Right now? Where do you think we’re going without? Well, before we get there, let me just ask you economically, I Want to talk about an economic issue? And and maybe just share with you a little bit of an in email that I sent to a to a friend. A couple of days ago, I had a couple of friends arguing over on an email thread. They’re always debating these economic issues. They’re pretty fun to watch it on. Sometimes they get a little bit nasty with each other, but they’re good friends. They’ve been a very spirited debates. And they posted the article from Zero Hedge about Obama saying that 3 million was all anybody needs to retire, and $205,000 per year in nominal dollars. It’s interesting that they pointed out nominal dollars. It’s very interesting. They define that So specifically, and really scary, not just interesting, but they’re going back and forth about how you know America is in decline. And I’d rather live in China. I remember Jim Rogers talking about how I’ve had him on the show, talking about how China is more free and capitalistic than the United States nowadays. And you know, honestly, I really disagree with that. I think the US is headed in many wrong directions. But when people look at the math and say, Oh my gosh, we’ve got $16 trillion in debt, we’ve got 62, you know, 120 trillion or maybe even more and unfunded entitlements and future expenditures that we can never possibly pay for in real dollars. So the likelihood is we’re going to inflate our way out of the mass as has been done. And I hate to say this successfully, historically, so many times. Yeah. And recently and recently, and recently, yeah, it seems to be a good business plan, ultimately, and I want you to comment on that recently thing, but let me just tell you what I said. It’s a really quick thing it says, it seems illogical. But math doesn’t matter much when you have the world’s reserve currency, the largest economy, and the most powerful military to keep it that way. Massive natural resources, exceptional geography, the international language, and the 230 plus year quote, brand, unquote, that is synonymous with freedom innovations. stability and opportunity for 7 billion people. Yes, America is in decline. But it’s going to take a very, very long time to dislodge those valuable assets. Am I being too optimistic? You were chuckling I
Doug Wead 36:14
think that’s just a brilliant synopsis.
Doug Wead 36:18
And it’s our problem. But but but yeah, I think you summed it up really well. I mean, I look at I mean, we torture people and we just applaud it. We think it’s just great. We go to movies and cheer it now. If they’re scary music and the people torturing them are in black shirts. And they’re Nazis. We’re just outraged and we wondered how would people put up
Jason Hartman 36:40
How could they be so cruel, you know,
Doug Wead 36:42
but but we just love it when it’s us torturing them. We got good reasons. Well, now you know how the Germans felt.
Jason Hartman 36:49
We claimed to have the moral high ground
Doug Wead 36:52
Yeah, but boy, you summed it up well, when you described the brand which is endured and, and the currency and it’s You’re right that that seems like it would take time. The only thing is, some things can happen very quickly when the economy is in trouble. You look at the last depression, not this one, but the one before. And that saw the rise of communism, the rise of fascism, the world was, it was a cataclysmic time. That’s what a great depression can do. And we’re going through the Great Depression now. So my hope is that we’ll have to have cataclysmic events that will take us back to to authentic constitutional government. So I’m hoping that maybe maybe the dramatic can happen.
Jason Hartman 37:44
Is there any chance to get back? I mean, how would How would that work? I mean, how would it happen? I think it would happen with strong secession movements, probably. But what are your thoughts? How would we go back?
Doug Wead 37:54
Well, I think we in a sense, we are going to start going back what we have to keep in mind is it’s not the Federal Reserve as much as it’s human nature. And we we can add systems and change the systems and in corruption in one place, it’ll just pop up somewhere else. So we’re not going to change human nature and there will always be people who will take the trillions and let everybody else starve. You’re going to have that you’re going to have capital cronyism, where the marketplace and people in it are cheated, but at least we can make a move. We can force them to close down this part of corruption and open it up somewhere else. I think that’s happening. I mean, when you’ve got 80% of the country now favoring an audit of the Federal Reserve, you watch it won’t be long till Obama and and all the Republican nominees are going to call for it and Biden and won’t be a real audit, but it’ll
Jason Hartman 38:59
be the window dressing versions right here, right? Yeah, at least it’s something. Yeah.
Doug Wead 39:03
So we’re seeing some, we’re seeing some movement. Now you look at the way they treated Rand Paul compared the way they treat their dad. And it lets you know two things are going on one, the country has moved pretty dramatically, Dr. Paul was able to move it in that last election. And there are more people sympathetic to these ideals of liberty. That’s one thing. And the second thing is some of the pundits who went out on a limb attacking Dr. Ron Paul, are pulling their punches with Rand Paul, because the fact that it’s Rand, it’s giving them a chance to revisit these principles and change their mind and they’re doing it. I’m talking about people like Bill Kristol, and others who are publicly saying more respectful things have ran than they did of his dad. It’s kind of like they’re able to save face and yet, just some of their views.
Jason Hartman 39:58
So why are they being so What you’re what you’re saying is they’re being kinder to ran than they were to run might interpreting that correctly?
Doug Wead 40:05
Yes. And I think part of it is because they sense the public has changed. I don’t think it’s all the rhetoric, but they since the public has changed and they sense they can do this for example, Dr. Paul would talk about the end of foreign aid and why we need to you know, and really great language he Dr. Paul’s definition of foreign aid is, you know, is taking money from poor people in rich countries and giving it to rich people in poor countries. It really is.
Jason Hartman 40:35
That’s a great definition to Yeah, the the UN oil for food scam. I mean, just it’s scam after scam after scam. And all it does, it just stays at the top in in these in these developing countries. I mean, it’s so unfair.
Doug Wead 40:51
And they even Israel’s aid, as you know, comes back to the United States to it the lobby in the United States right? lobbies for aid Israel are the people who make the money when Israel turns around and takes that money and buy stuff from companies in the United States? So it’s it’s it’s corporate welfare, its own coin, give me some of the taxpayers money. And yet it’s it’s scammed as foreign aid, well ran treated very differently. He went went to Israel. He said, here’s one of our traditional allies. Here’s a country whose instincts are the same as ours. We don’t even have a formal treaty, yet we can count on Israel to stand up for the things we would believe in in the Middle East. And yes, I’m against foreign aid. I think we should these countries should be weaned off of our foreign aid. We’re broke, and we need to quit borrowing money from China and giving it to Pakistan. But I would start with our enemies. I would start by ending foreign aid with our enemies. Israel’s the last one I’d stopped the foreign aid to Well, he’s still saying the same thing Dr. Paul saying which was let’s in foreign aid, even the foreign aid Israel But the way he put it is far more politically palatable in the United States and understood the United States. And so some of the people that opposed his father find themselves now comfortably promoting Rand Paul, because they see, this is where the country’s headed. We’ll be back in just a minute.
Jason Hartman 42:19
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Doug Wead 42:32
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Jason Hartman 43:17
Everybody likes her right, Ron Paul off. And not everybody, of course, but so many people do in the lamestream media, love that phrase and say, Look, you can’t be so isolationist in, in the modern, interconnected world. I agree. I mean, I take kind of a middle ground on that. I think we’re way too interventionist. I think we’ve got way too many military bases around the world. But don’t you agree, though, that I mean, Ron Paul’s ideas were maybe just a little too far to the isolationist perspective.
Doug Wead 43:50
I personally don’t think so. I agree with Dr. Paul on just about everything. I guess they
Jason Hartman 43:56
don’t tell me why though, because, you know, I haven’t had a chance to ask him
Doug Wead 43:59
what One thing, I think that his views were not accurately explained. And he’s a very kind person and he’s a teacher more than he is.
Jason Hartman 44:12
Oh, I agree. And he’s so consistent to he’s so honorable compared to everybody else.
Doug Wead 44:19
For example, He didn’t want to end the Federal Reserve. And if you’ll YouTube that question over and over, you’ll find him saying every time he’s, he’s interviewed, no, I don’t want to end the Federal Reserve. I want to phase it out, phase out its influence and I want it transparent and audit as a first step. And he goes in he so it’s a little bit different than its portrayed by the media and then even some of the own Liberty movement. believe so. I mean, I disagreed with him, for example, on the whole issue of, of drugs and argued with him a little bit about it, but I I’ve, I’ve come down on this on the same side with him on that issue. I mean, you You stop and think I was reading in blooms book on gulag, her Pulitzer Prize winning book on the gulags, and she categorizes everything that happened. It’s a wonderful book. But she gets to the great terror when Stalin had so many people in in the gulags in prison, that he the economy couldn’t sustain it. So he had to kill him off. So they started working them to death. So here are these people in Siberia and all these concentration camps strung out all over the Soviet Union. He’s going to kill them all, because there’s too many of them. How many did he have in the gulags? Well, the the best estimate is at that point 1 million Soviet citizens were imprisoned, including children, and many children were born into the gulags.
Jason Hartman 45:44
And then the quite the question to ask is, and you may not know this, but how what was the population of the Soviet Union way back then, you know, it was much lower. Well, I don’t know. We know that country has
Doug Wead 45:53
it was about 250 million. That’s what it was that So today, our population prison, as you may know, is 1.5 million people. We have four people behind bars that they had during the Great terror. And by far the vast majority of them are in prison over marijuana. Now I’ve never smoked or or I’ve never tasted marijuana inhaled or otherwise. And so I’m not just a big marijuana and wanting to promote marijuana but I, I think this is ridiculous to to incarcerate so many of our people. So I’ve tended to agree with him on a lot of things. I think violent criminals ought to be pulled off the street and white collar criminals ought to pay for their crimes and have their wages garnished and productive. I think we ought to our system to gear more towards the victims of crime and less than this warehousing of bodies.
Jason Hartman 46:54
Yeah, I couldn’t agree more. So with the drug issue, should we just treat that as a social problem? The way the Europeans do and stop criminalizing all of it, I it’s just ridiculous the amount of money we’re spending on that. But what scares me with the, with the prison system is so much of it has become private. Now we’ve got these incentives again. And we’ve got these iron triangles forming just like the public employee unions in California, you know, it’s another bunch of interest and there’s a prison lobby, and they’re looking out for their own interest. How can they get more customers, which means more prisoners? Yeah. Jason, it’s the point you made earlier what what the quote you used what gets rewarded gets repeated. Yeah, Yeah, it does. It does. But what do we do about it? That’s the question.
Doug Wead 47:38
Well, exposing it is the start. And I, I guess I’m so new to the Liberty movement. I have a little more hope than some of the old timers do. Some are pretty cynical about it. And some almost kind of want us to lose. I think they want martyrdom. I’m finding there’s a lot of chains in the Liberty movement. There’s a lot of things you can’t do. They don’t want you to Do it’s pretty tight culture, but I’m enjoying it and learning so much and feel rather ashamed of myself for coming to it so late.
Jason Hartman 48:09
Uh huh. Yeah, yeah. Well, it’s good that you’re involved and that you’re helping getting get these ideas out there, Doug. But anything you’d like to say in closing just to kind of wrap up with
Doug Wead 48:18
no, but I loved your earlier synopsis. I hope you’ve got that captured.
Jason Hartman 48:22
I do I do. I’ll email it to you.
Doug Wead 48:26
That’s really good stuff.
Doug Wead 48:29
That sums it up.
Jason Hartman 48:30
I I just I just think as negative as I am about things a you know, the way they’re working. Overall, I think the demise of America has been vastly overstated. I think it’s going to take a long, long, long time before before we see the big collapse that everybody keeps talking about.
Doug Wead 48:50
Well, that may be true, but but what what I’m afraid of is we may have had a collapse of freedom. The country may endure my my wife is French and she was asked me the other day, she was saying now. Now, George W. Bush is a conservative Republican. I said, Yeah, that’s what they say. She says now. Now, when I was in France, Francois mitterrand ran for president, he wanted to nationalize the banks. And we called him a socialist. There was no shame in that. He was elected. He was a socialist president of France, and my dad was on the board of a bank. And so it was hotly debated, but we did nationalize the banks in the country. And we backed away from it after a few years, but that was a big debate, and, and it was the socialist government of France. But you were President George W. Bush, he nationalized the banks, and you call him a conservative Republican. I don’t get it. Right. Well, at the state of my wife, well, I don’t get it either. Yeah, it’s
Jason Hartman 49:49
it’s hard to explain that one. But then also, they will make the argument that they didn’t really nationalize the banks by bailing them out, of course, but that’s a whole nother discussion. My friend. Yeah, but I agree, I think I think the collapse of freedom is very much there. They have so many laws. john stossel did an interesting show on this. You’ve probably you probably caught that, I bet. And it was about how, what I’ve been saying for many years, there are so many laws that we’re all violating laws all the time nowadays. My mother growing up, I remember she used to say to me, ignorance of the law is no excuse. Yeah, but you can’t possibly know all the laws nowadays, especially if you’re in business. It is so immensely complex. Yeah. They’ve always, in other words, the government always has something on us nowadays.
Doug Wead 50:38
And it’s meant to be that way. Yeah. It’s kind of like, click here. I have read this. And I agree,
Jason Hartman 50:45
nobody reads it. Of course. Yeah.
Doug Wead 50:46
And that’s what’s happened to our laws. You’re right and everybody’s vulnerable and it’s in business. It’s the same way you sign the contract and you accept the PNP. The procedures and policies of the company. They are designed to immediately make you vulnerable. And at their mercy,
Jason Hartman 51:04
yeah, yeah. Hey, just since you mentioned that one more thing, I hope you’ve got a minute to talk about this. But I watched a documentary last year called hot coffee and it was about the Stella issue with the McDonald’s lady spilled the coffee on our lap. And, and it’s just amazing how maligned that whole story was, I finally heard the other side of it. But the the upshot, one of the big takes I got from it. And what I’m really thinking a lot now about nowadays, is how these large companies in their contracts, they force us into these arbitration clauses. And these these arbitrations are basically kangaroo courts for the big customers, their repeat customers, these companies, and the consumer just doesn’t have any rights, no due process anymore. And you know, we all say, oh, there’s too much litigation and it’s just clogging up the courts frivolous lawsuits. I know, everybody knows that. That That is true. But my gosh, it’s like the consumer has really When I think it was Scalia on the Supreme Court was the deciding justice on that. I could be wrong on that, by the way, but I think it was, it’s like the consumers just lost their freedom. They lost their rights. And then, you know, you add to that the fact that we’re going to have drones flying around spying on us, that’s the legal system. It’s not the government directly but it does matter.
Doug Wead 52:20
It matters the the meat tainted and on and on, you can go on and on and on. And we’ve got tumors and cancers popping up all over and no real competition among the the watchdogs that check our produce and food and some of the most basic things now are under attack. It’s It’s interesting, interesting times and my feeling is people in the ron paul movement were kept referring to a revolution. I believed I felt it was a counter revolution. I believe the revolution happened under my friend George W. Bush and Barack Obama. I think we’ve had a change of government and counter revolution to go back to the US Constitution is what we need now I think we’ve already we’ve left behind the US Constitution it’s it’s treated like camp youth camp rules. You got to be in bed at 10 o’clock wink wink, wink wink
Jason Hartman 53:17
and and selective enforcement of those rules. So the government always has something on you. But what’s interesting you talk about the tainted meat and the pharmaceutical industry and stuff. It’s it’s just unbelievable that all of these people that work for these various government agencies, it’s particularly common on Wall Street. I mean, what a bunch of criminals, that whole enterprises, you go and investigate a company, and it’s basically a way to apply for a job. It’s a revolving door. Yep. Because these regulators, they get hired away by the private good, the big giant corporations, and they know that if they bust them, if they’re on their case too much, they’re not going to get a job offer. I mean, it’s just it’s total conflict of interest
Doug Wead 53:58
yet it is it is it’s a revolving door
Jason Hartman 54:01
well keep up the good work my friend and keep you to keep saying the things you do. And thanks so much for joining us. Any websites you want to give out or any of your books that you want to recommend tell people where they can get them anything like
Doug Wead 54:12
well, just Doug weed calm, do you gwead.com
Jason Hartman 54:17
Excellent. Well, Doug weed thanks so much for joining us today.
Doug Wead 54:20
Thank you, Jason. It was great.
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