CW 526 – Bill Tatro – Barrack Obama: A Financial Terrorist

Bill Tatro is an economist and is a former radio show host of It’s All About Money. This is Bill’s second time on the Creating Wealth show and Jason catches up with him on what’s new in the economy. Bill talks on Gen Y’s disinterest in golf and tennis, Gen Y being more money savvy than their parents, and much more on today’s episode.

Key Takeaways:

[1:15] Jason has finally moved to California.

[3:10] The first event for Venture Alliance starts this Friday evening in San Diego.

[4:30] Jason introduces Bill Tatro to the show.

[5:15] Gen Y doesn’t seem to be interested in golf.

[10:20] How does golf and tennis work in a Keynesian world?

[14:15] Millennials understand finance.

[18:45] Why will a Keynesian system end in war?

[25:00] People are just not spending money right now.

[26:35] The only way out of debt is through inflation.

[30:00] Most retirees have to sell their assets to create an income stream.

[34:55] Barrack Obama has succeeded in destroying the middle class and having more people become dependent on the government.

Mentioned In This Episode:

http://billtatro.com/

Tweetables:

We live in a Keynesian world.

The one thing you have to understand is the Millennials understand finance.

Make sure you have cash in your house, actual cash, because that in an deflationary environment can be very powerful.

Transcript

Jason Hartman:

Hey, welcome to the Creating Wealth show. This is your host Jason Hartman. This is episode number 526. 526 already and I am officially moved in to my new place in La Jolla, California . I never thought I’d become a resident of the socialist republic of California again, but here I am sticking it to the man. Yes, I move to California to actually take advantage of a tax break. I wonder if that is a Guinness World Record. I may be the first person in history to move to California to save on taxes. I know, it’s crazy. Weird things happen, but here we are.

So, anyway getting settled, dealing with internet service providers trying to get my internet setup. The handy man is here. He agrees with me about all this California stuff that I was just ranting about and anyway, you know what amazes me is that as technologically advanced as our world is and as convenient as so many things are nowadays, whether it be shopping on Amazon, etcetera, etcetera. How is it so difficult to deal with these companies that provide cable and internet services?

Oh, wait, I know, they staff the call centers with incompetent people and they have near monopolies and they just like the Wall Street banksters and the other crooks on Wall Street, guess what, they have lobbyists, so they’re in bed with all the regulators so they can maintain their semi-monopolies and give terrible service.

Okay. There’s my rant for the day. You always get one from me, you know that. Our guest today will be Bill Tatro and he’s back on the show. He was on, I don’t know, maybe four-five dozen episodes ago. I think it’s about maybe 40-50 episodes ago, something like that. He’s back on to talk about the economy today and some interesting stuff. He’s a very interesting guy, so without further adieu let’s get to him, but oh wait a sec. There’s one more thing

Venture Alliance people, by the way, a bunch of you have recently signed up. We’re going to have an awesome weekend. We start Friday evening, 7 o’clock, hotel Palomar in San Diego and it’s a super swanky hotel and yes, we took care of your hotel for you. It’s our first event for the Venture Alliance so your hotel is on us. We’re just going to have an awesome time.

So, we’ll see you Friday evening. As far as what to bring and what to wear, you know, business casual and then casual clothing. Bring a jacket, maybe a sweat shirt, that kind of stuff. We’re going to be doing some amazing things. We’re going out on a big 54ft yacht. We’re going to do some paragliding. It’s going to be an awesome weekend, but most importantly, we’re going to look at great investment opportunities. I’m really excited about some. We’ve got a couple of guest speakers too, so it’s just going to be an awesome weekend.

So, we will see you Friday Venture Alliance members and guests. I know we’ve got several people that came as a guest as well. So, the response has just been terrific, better than I thought it would. This is our inaugural event. So we’ll look forward to seeing you Friday. Let’s get to our guest, Bill Tatro. We’ll see you on Wednesday’s episode. Here’s Bill.

It’s my pleasure to welcome Bill Tatro back to the show. He’s an economist, he is a columnist for TownHall.com and he is the author of the It’s All About Money newsletter, publisher of White Papers. Former radio show host for over 30 years and numerous media appearances. So, it’s just great to have him back on to talk about the economy, where things are going, and how they impact us as investors. Bill, welcome back, how are you?

Bill Tatro:

Well, Jason, thank you for having me. It’s always a pleasure. You didn’t put one thing in the bio, trying to work on a very bad golf game.

Jason:

Well, there you go. You know, it’s interesting by the way, I don’t know if you’ve noticed this or read an of the articles about it, but golf is really sliding. In fact, it’s a pretty amazing slide in popularity. So, you ought to be getting a lower prices on your green fees out there, because one article cited, it was talking about how generation Y, the millennial generation, which is the largest generation in American history, the largest demographic cohort, slightly larger than the baby boomers.

They’re just not taking up the game and in the last ten years, golf, as they majored in not green fees, but number of games played, I guess. It’s down over 35% in the last ten years. That’s a pretty significant thing for all those golf course owners with all that real estate and all that overhead. Maybe you have a commentary on that by the way.

Bill:

Well, I think you’ve really hit on something that is very significant and golf is just one of the, we’ll call it a side bar, yes, from a golf standpoint, the days of the old fashioned, I don’t know, remember Caddyshack, Bushwood, and you know, get the shine on my shoes and all the rest of that stuff. In the sense, those days are gone and because when you look at this millennial generation and this is what’s interesting because I think this is a good topic for today’s show because when you look at this millennial generation, they’re kind of breaking the mold for a lot of things and not just in golf, because when you say golf. Alright, so golf was designed to flow a particular way. Okay, big golf course, big club house, you know, to the affluent, etcetera.

Jason:

Lots of real estate, lots of overhead.

Bill:

Yeah, lots of real estate and all the rest, but now let’s take it a little further. The whole structure in most communities has been built on this particular premise. Kid goes to highschool, he goes to college, he gets out of college, he gets a job, he comes to the community. He gets married, he buys his first house, he has a kid, then he buys another house. He has a couple more kids. He’s ingrained in the community and the tax foundation, the base of the community is predicated on that.

I’ve seen many, many models in various communities not only towns and villages, but cities around the United States where they based their income stream, their tax flow, predicated on this increasing tax base and it’s not the 80-year-old guy who is now buying another house. It’s the 25, 30, 35-year-old. You ask a millennial today, first of all, if he has a job, because he graduated – a 25-year-old graduated from college doesn’t have a job.

Secondly, where do you live? Well, I live in an apartment or, as we’ve seen, many of them are living in mom and dad’s house. What about buying a home? Well, buying a home that was asked about 65% said, I don’t really think that’s going to be in my plans in the future. So, basically what does that do the model that a town has built on this tax base? It just kills it because no only is you got income coming in for the services of that community, but also income coming in to pay for the pensions of the people who work in that community.

Now, all of a sudden the income is not there. The pensions are under funded and now all of a sudden social services aren’t there, cops, health, whatever, and so the whole thing, so I lay it. I’m not saying that this is right, wrong or indifferent. It’s just what it is. That’s the way it is right now.

Jason:

It’s really quite a change and one of the things these articles, and I’ve seen a few articles about it, they’ve been citing is that, of course, the game is very expensive, but you know, people don’t have five and a half hours to play anymore. You know, the world is just moving so quickly nowadays. I would love to see a resurgence in tennis, actually. I’m kind of wondering why that game ever lost its popularity. I don’t know, maybe I just love the tennis outfits of the girls, but you know, that was a great game.

Bill:

Well, you know, as we get older, we don’t want to spend five-six hours on the golf course and maybe we want to spend a little time on the tennis courts and we’ll see, but I mean, to my other point, when you’re looking at this world that we’re looking at, they’re just a tremendous amount of changes, the dynamics, and the models. This is where Keynesian comes in and as an economist, I always have to throw this in, because we live in a Keynesian world.

Jason:

Oh, very Keynesian. It’s all Keynesian. You know, Bill, it strikes me – keep your thought there, but it just strikes me whenever the big G whatever. G7, G20, you know, whatever it is at the moment, whenever they meet and whenever other world leaders and central bankers meet in Davos and all around the world at these summits, they only have one bullet in the gun. It’s QE, man. It’s just increase the money supply. That’s about all they’ve got, you know? It’s Keynesianism baked in the system. It’s just through and through, right?

Bill:

Well, there’s no question about that. Let’s keep it then in your context of golf to tennis.

Jason:

Sure.

Bill:

Alright, so in the Keynesian world, if a golf course is failing, well, in the normal capitalistic world, okay, free market capitalism, the golf course fails. It goes under, maybe somebody buys the real estate, put some houses, but there’s a change. There’s the evolution. If you fail, you fail, but in the Keynesian world – and then tennis takes over, let’s say.

In the Keynesian world. It says, no, we believe that the business cycle can not operate in its own. It has to be added continually by the federal government or a government in general, alright, whether it’s European government, whatever it is, and the government has to aid in there and so that’s why in 08, we saw, we didn’t see GM go under. We didn’t see Goldman Sachs go under or Merrill or some of these others. What we saw was government riding to the rescue. So, if we were to say, okay, let’s let free market capitalism go, then those things would have gone under. We would have been much better on the road to recovery.

Jason:

Oh, of course, yeah, yeah. Well, all we’ve done is make it worse by kicking the can down the road, no question.

Bill:

That’s right. So here you have in the golf, okay, so you and I’ll agree. So, golf fades, maybe tennis comes back or something else comes back and takes its place, but in a Keynesian world, the owner of the golf course would go to the government and say, no, wait a minute, I think I need a QE for my golf course. I need an infusion of $4-5-6 million dollar to keep me going, thank you very much. So, when you look at it that way, that’s what’s happened. That’s where we are and then you look at, well, who gets that benefit? Well, the guy who wrote the check to keep the politician in power and so now we see how the money flow. Very interesting dynamic we live in today, Jason.

Jason:

Yeah, it’s really interesting and there’s all these deals and it’s just too complicated, you know, the free market can’t do its thing, because you got all these side deals and all of this, ugh, God. It’s just absurd and none of it ever really works. It really just doesn’t you’ve got a blog post about the millennial strength and there’s been so much talk about this generation.

It’s so important and maybe people listening think, well, Jason and Bill, why are you talking about this? I am a baby boomer, I’m 53 years old. What does this mean to me? Well, it means a lot to you. This is very significant because as these millennials, 80 million or so of them, slightly larger than the baby boomer generation, move through, you know, the things that they’re going to do, household formation and stuff, it affects the real estate market. They are saddled with huge student loan debt. About $1.2 trillion, with a T, dollars, not dischargeable in bankruptcy.

You never get a second chance on that student loan debt. I think they’re going to be renters for a long time. I’ll tell you that much. I’m not sure I have well-developed thoughts on how they interplay with the stock market and the other financial markets, but boy, you know, delaying household formation, delaying marriage, wanting to be mobile, go where the jobs are, etcetera. Bill, any more thoughts since we’re kind of talking about the millennials?

Bill:

Oh yeah, I wrote a piece and it came out in Townhall today and I said, you know, I did my poll of millennials and I said, you know, there’s an organization that came out and they look at the students and they do the students from about 15 up to 25 all over the world and our students have continually are sliding and we’re lucky if we’re in the top third of anything and that was from the last poll that came out in 2012. I’m anxious to see what’s going to come out for 2015.

It’ll be in early 2016, but I said in my piece, I said, you know, the one thing that you have to understand is the millennials understand finance. They really do! They understand well, I did the poll and I asked questions and I talked to about 50 different millennials and I said, tell me what you think about college. Well, it’s a place to go. If I can stay there for as long I can stay where mom and dad pays for it or the government pays for it. Next question. What about your student debt? Well, it’s something that I’ll probably will never have to pay back because the tax payers are going to end up paying it. What about jobs? Jobs? There’s no jobs for me because in my particular field, I’m an anthropologist or I’m a this and I’m that and as long as I live in mom and dad’s basement, I don’t need a job anyway and on and on.

Jason:

Bill, I gotta, I gotta share one more of your poll questions with the audience here. What about the stock market? Answer: A gambler’s game played by suckers where only the 1% wins. That’s according to your poll. I love that answer.

Bill:

Yeah! And that’s it. When you look at it then, they’re not going to buy houses, because they’ve seen how housing can be overpriced, can come down on them. Ben Bernanke says it never went down.

Jason:

What’s interesting about their psychology is look it. The stereotypical American dream was that, you know, you would buy a house and set down roots, but we love in the most mobile country in the world. Our population is more mobile than other population, at least borrowing some nomadic tribe, okay, and also a lot of these millennials, their formative years were at a time when they saw their parents lose their house. They saw their parents over leveraged, over encumbered and, you know, they are kind of shy about that thing. I don’t think that dream lives for them anymore like it did it for the baby boomers and even my generation, the gen Xers.

Bill:

No, I think you’re absolutely right and I put in there and I did it facetiously, because I asked students and I asked people who right up in the 30s, I said okay, tell me about your portfolio and variably, 99% of them would all laugh and I remember one girl, she says – there was a group of about four of them where they were sitting around and I was talking to them and she says, I got an iPad and the other one goes I got the iPhone and one of the guys goes, well, I got a six pack of Coors Light, that’s our portfolio.

Jason:

Yeah, it is. Interesting.

Bill:

No, but it’s also, again, I come back to the point, if you’re basing, if you’re Keynesian, you operate on models and your models, you never change your model. One wonders, there will be, I believe, a QE4 that will be in our future, because when the model doesn’t work an Austrian economist like I am will go back and change the way you do things, but the Keynesian says, well, if it’s not working it’s because we haven’t done enough of it. If we’re not out of debt, it’s because we haven’t gone into debt enough!

Jason:

Let me give you another metaphor for that. It’s if the fire is burning, let’s throw a little gasoline on it and if it doesn’t put it out, let’s throw some more on it and it just makes it worse and worse, but you know, you gotta pay the piper some day, right?

Bill:

Well, that’s correct and that’s one of the issues and I know in your program, you talk a lot finance and how to make people wealthier and protect their wealth. They have to realize there is no solution to this problem when you have the same philosophy and whether it’s a new congress, a new house, a new senate, a new President. When the philosophy stays the same, it’s irrelevant who is in there, quite honestly.

Jason:

Yeah, it really is, because there are all Keynesians, even Reagan, you know? It’s just, all of them operate in the context of the Keynesian myth. It’s unbelievable how revered this guy is still. I mean, it’s just amazing. Whatever doesn’t work, let’s just keep doing some more of it.

Bill:

Yeah and he’s gone through cycles I mean since his book came out in the 30s and you know, he’s come through various cycles and sometimes and right now he’s revered until he won’t be and what won’t be is ultimately Keynesianism ends in some really bad things not the least of which is war and we’re starting to see that internationally.

Jason:

Tell us why it ends in war? Put that together for the listeners if you would, Bill.

Bill:

Well because what happens is is that Keynesianism as a philosophy worldwide will separate the have from the have nots and so what you’ve got is you’ve got the 1% becoming more and more wealthy and more and more in power and you have people, the middle class, getting less and less and less. Around the world what happens then is there is this ferment in different countries and what we see is out of this, well, in Europe right now.

In Italy and Greece and like that. We have youth unemployment over 50%. What they should be afraid of is somebody emerging from that youth group as a leader that says to them, we need to take our country over. We need to take our country. We need to be do these different things and the only way we can do that is seize control. Not at the bailout box, but through the bullets. Classic case of that was Adolf Hitler in the 1930s and so you see these people who rise and then all of a sudden it’s the haves don’t want the have nots to have what the have’s have.

It sounds like a little gibberish there, but basically it ends up in that type of conflagration. I can see it. I’m watching it now, whether it is in the Ukraine, whether it’s in the activities in the South China sea with Russia and China having naval operations for the first time in history. Our kind of hooking in with Japan, a little tighter in that area, but these things are happening. Keynesianism always ends in some type of conflagration.

Jason:

Yep, very interesting and, you know, socialism, communism, which are basically part of that same set of ingredients, if you will. They always end in oppression and death, you know? It’s just mind boggling that the human race hasn’t figured this stuff out yet, but I don’t know.

Bill:

Well, not everybody goes, you know, solves their problems by going to the mall.

Jason:

Yeah, exactly. Yeah, George Bush number two saying, you know, 9/11 happened, go out and shop some more. It’s just sickening, it really is. It’s amazing. What is your thought on where we’re going and I just want to first ask you generally and you are really good at nailing down some interesting very specific issues on this, but just generally as I look at the economic landscape, I think there are three basic scenarios. There’s inflation, deflation, and stagnation, and of course there are some varieties of all of those. Where does Bill Tatro think we’re going?

Bill:

Well, Bill Tatro has been a deflationist for a long time and back in the beginning of 2014 when 68 different economists, of course I wasn’t one of them that was polled by both Reuters and Bloomberg, they all said, interested rates would be at 4% by the end of the year. There’s only one way interest rates can go and that is up, because we’re down around the 2% range. Strangely, we see, now we see a bump up and we get these, I call them dead cat bounces, but I’ve seen interest rates plummet through areas that people just couldn’t conceive. Switzerland having the first negative ten year interest rate on their sovereign debt. Nobody is there, then all of a sudden you see Germany. I mean, as the same thing there down to, what, 0.28%, something along those lines. Deflation is the thing.

Jason:

So you’re still staying that, right? You haven’t changed your..

Bill:

I’m absolutely still saying that, Jason, because the money short of doing a Helicopter Ben of dropping money. The money that was printed or we’ll call it created, because it wasn’t printed, it was created never got to the public. It stayed in the balance sheets of the banks. It stayed on the 1%’s side, in the major corporations and it stayed overseas.

Jason:

I just want to make sure you address some things before I forget. So, first of all, won’t that money ever trickle down? I mean, the 1%, they invest, they spend, it’s not like they can, nobody can really live in a vacuum unless you put your own money under your mattress. Your money is doing something always. It’s either spending, it’s investing, it’s saving, which is capital formation, increasing someone’s balance sheets somewhere or liability if it’s the bank, because a bank looks at it in reverse, but you know, that isn’t in isolation. If somebody is getting richer, that has to trickle down, doesn’t it?

Bill:

No.

Jason:

No? How come? Okay, so, Arthur Laffer be damned, right? Is that what you’re saying?

Bill:

Let me just tell you why I take this position, very quickly, okay, because when Jason Hartman goes to the grocery store and he buys a loaf of bread. When Warren Buffett goes to the grocery story in Omaha and buys a loaf of bread, your net worth and his net worth – well maybe yours is the same as his, I’m not sure.

Jason:

Not quite.

Bill:

Okay, but Jason Hartman and his net worth, he’s making a billion dollars every two weeks or three weeks, but he still only buys the one loaf of bread.

Jason:

I see that on the consumption side and there’s a Ted speech, a Ted talk of a guy who seems like a capitalist who is apologizing for the sins of capitalism right. I can’t remember the guy’s name, but he’s says that the rich don’t help the economy is his whole thesis and I think that’s BS, because, you know, even though Warren Buffett only pays the same and buys the same loaf of bread as I do, in your example, his money is still doing something. It’s either growing a company, which is growing employment. I mean, money can’t do nothing, can it?

Bill:

Well, let’s look at Apple. Where is most of Apple’s money? Is it creating jobs here in the United States or is it sitting over in overseas where it’s not being taxed and the money they make, you’d think that Apple could be one of the biggest, biggest employers in this country. GE, a lot of them. So, there’s money coming in there and yes, I mean, if you take the guy who has just made his, got his million dollar bonus and don’t get me wrong, I am a great capitalist.

I want people to make as much money as possible and go out and spend it, but we’re not seeing that and how do I know this? Because just take a look at the amount of money and the money that’s flowing through the system, okay, and you look at that and you look at the volatility index. The volatility of money, right, and all of a sudden we are back to where we were in the 30s. It’s just sitting there. It’s not moving. That’s the problem.

Jason:

But does it eventually have to move? I mean, money gets impatient. It burns a hole in people’s pocket. They want to do something with it.

Bill:

Ah, remember Jason, a lot of that wealth is tied up in various so-called assets whether it’s that ten million dollar home that was worth five million, whether it’s that stock. Maybe you owned LinkedIn and you have much of your wealth in the LinkedIn stock and you woke up the next morning and it’s down 27%. A lot of assets are not in actual cash that is sitting there. That’s why I tell people, one of my biggest things to tell people is to make sure you have cash in your house, actual cash, because that is in a deflationary environment can be very, very powerful.

Jason:

Okay, so cash in a deflationary environment, that’s interesting. Now, I gotta ask you this though, don’t you think it’s a good business plan for governments and central banks to have inflation? Isn’t that their way out? I mean, when you’ve got all these governments, especially the US that controls the reserve currency, of course, with so much massive debt, don’t they want to debase their own debt through inflation?

Bill:

Oh, there’s no question about that. That’s the only way out is inflation, problem is, let’s look at Japan, been trying to inflate for almost three decades now, can’t get to 2%. Look at Mario Draghi, the head of the European central bank who is trying to now create his own quantitative easing over there to raise inflation. It’s not happening. The main reason, Jason, because of that is that you can not, and this is where Keynesians falter, you can not create, you can not force demand. If I give Jason Hartman five more credit cards. If I give you then the ability of debt, are you going to go out and spend it?

Jason:

Well, maybe or maybe not. It depends on who you’re giving it to, of course. We saw that during the last financial crisis, but if you increase the supply of money, okay, and wages trickle up a bit, if everybody has got that wealth effect. If the price of their real estate goes up. If their stock portfolio goes up, you have that wealth effect, people just feel like they’ve got more money to spend, so they spend, so they increase the volatility of money. I’m not saying it’s a good plan, I’m just saying it is a good plan for governments and central banks. I’m not saying it’s like, don’t get me wrong, Bill, I’m not saying this is rational or logical or prudent. I’m just saying it’s a good deal for governments and central banks.

Bill:

No, Jason, you’re absolutely right in what you’re saying. Unfortunately, that we’re into a time period with people that they’re not doing that. We can look back when gasoline went from $4 a gallon to here in Phoenix paying less than two bucks. The thinking was, oh, look at this money that’s being saved from the middle of last year to the end of the year. Look at all this money that the consumers is not putting in the tank, he’s got in his pocket, boy is he going to spend at Christmas time, okay, but he didn’t. It was a disaster.

So, consequently they’re saying, well, why aren’t the people spending? Why aren’t they going in and spending and what you got is, now you come back, we kind of doing this round circle, come back to the millennials, they don’t have jobs! Come back to the guy who is a retiree. He’s got money, but he’s being forced if he wants a return to go into the market, because he’s getting zero interest rate policies. He’s getting nothing there.

Jason:

Right, right. So, that’s the big scam that they’ve taken all these people, these millions of people who did the right thing all of their life, they saved money, they delayed gratification, they created capital formation, which is the key to wealth in any society and they did all that and they thought they could live off their savings and, you know, invest very conservatively, they could buy bonds, they could have CDs, they could ladder their CDs in banks and live off that money and they’ve got no return. So, they’re being forced to do alternative things, many of them more risky.

Bill:

You’re absolutely right. One could look back if you’re an advisor on Wall Street, you could say, yeah, but look at the stock market over the last few years, boy, if you’ve been in there, you’d made yourself a fortunate, etcetera and then you say, okay, now wait a minute, I’m living off this money, I need to create an income stream and most of them aren’t paying. I’m going to have to sell assets to create my income stream. Now it becomes a very sticky issue here and if all of a sudden this market does fall apart, are you Mister Adviser going to say to me, oh – normally the reaction is don’t worry, it’ll come back, except that I’m 70-75-years-old Mister Adviser and I don’t have 10 years for it to come back. That’s one of the problems.

Jason:

Exactly, yeah. Well, and the other thing though with what’s going on. I mean, some amazing things are going on in the field of longevity sciences, maybe they do have a lot longer. Maybe this is a huge sweeping socioeconomic problem or opportunity. I mean, of course, I don’t think many people would mind living longer, but you know, too much life at the end of the money is a good problem to have, but it’s still a problem, right?

Bill:

Well, you know the old addage, I want to die when my last check bounces.

Jason:

There you go, yeah. It’s good, but you know, in terms of that deflation/inflation discussion. If you  agree that this is a good plan for governments and central banks, the deflationists say things flippantly and I think this is silly that they say this, they say things like, well, there are so many deflationary forces that you can’t print enough money. You can’t create enough money to crate inflation. Well, the amount that you can create or print is unlimited, so that seems like a really specious thing to say, you know. Of course, you can create inflation, can’t you? I mean, is there some point when you have, I mean, this is not Japan. When you have the reserve currency of the world, can’t you inflate it if you want to? I mean, if you want to bad enough? Maybe the (#31:44?) people and the Austrians will complain like us, we’ll complain like crazy, but I think you can create inflation if you want to.

Bill:

Well, the problem here Jason is that the federal reserves under both Ben Bernanke and now under Janet Yellen want to create inflation and so they will lead you to believe that, well, we’re going to raise those interest rates as we get closer and closer to the 2% inflation and of course, the problem is that you can print all you want, you can do that and unless you want to then distribute it to people, the problem with that is the only ones that have access to that kind of – I’m talking about true access to that money is will say the so-called 1%ers or one tenth of the 1%ers that can actually go in and utilize and take advantage of those love interest rates.

Jason:

But can’t you, if you want to create inflation, can’t the government just say, look, we’ll increase your section 8 housing allowance by 20%. we’ll increase your social security check by 20% and boom, aren’t you just going to seize something in the neighborhood of 20% inflation if they do that?

Bill:

Could very well. Yes. I mean, you could turn around and you could ust say, okay, so now – and what they’re trying to do! Alright, let’s take a look at minimum wage. We see that in the city in New York, Blasio wants to go a $15 minimum wage in the City of New York and so why don’t we just raise it to, I don’t know, $50 an hour? Lets do that. Let’s, because I get social security. Let’s triple my social security. I’d be all for that, of course, I now know I’m going to have to take and probably buy my dollar McDonald’s is not going to be ten dollars and sure, it’s all going to level up and that’s where your battle comes in.

They’re not going to do that, because they don’t, okay, now we get into another three hour conversation about what people want. If you’re looking at getting and in essence destroying your middle class, this is why I gave Barrack Obama an A+. People say well, how do you rate the President and I said I think the guy has done a fabulous job. Okay, don’t, don’t, I just heard a big deep breathe on your..

Jason:

I’m surprised.

Bill:

No, the emails that I got were unbelievable. Now, let me just say, if you said out to try to say, I’m going to burn down my neighbor’s house and you publicly say it or you write a little column about it and all of a sudden you succeed and you burn down your neighbor’s house. Did you accomplish your goal? Yes. You must give the guy an A+. You don’t agree with what he’s doing, but he accomplished his goal. It’s in my contention from day one.

If you look at the guy’s history, if you read his writing, if you listen to Michele Obama who, when she first came in and said, our goal is to take your piece of the pie away and give it to somebody else, not to increase the size of the pie. They’ve done that! I’m the first guy who called this guy a financial terrorist. He has accomplished what his goals are and is goals were to destroy the middle class and to kind of bring into one level and so when you’ve accomplished that, your goal is to get everybody in a sense dependent upon the government. Look at the number of people who are on food stamps today. ‘

The number of people in my community who are standing at a street corner with their cardboard signs saying anything helps is increasing exponentially and so when we look at it. There are sometimes philosophies and actions that are being done that may be contrary to what you want to have happen or Bill Tatro wants to have happen and so that’s, I know that’s a totally different conversation, but it has to enter into the mix.

Jason:

Right, yeah. Very interesting. So, Bill, where do you think the market is going? When I say that, I’m talking about the stock market. I just wanted to make sure our listeners heard that from you before you go.

Bill:

Okay, you have to understand that I have been consistent all along and I’m kind of – ultimately now, Harry Dent has come into my school. I think the ultimate over the next probably 12 to 24 months is a major collapse in the market. I think we get down to somewhere around 3,500. That’s about a 1,500 point drop.

Jason:

Wow.

Bill:

Yeah. Much like Japan did back in the early 90s when it went from 40,000 to 10,000. Actually around 8,500. Nobody thought that could ever happen and they were talking a 100,000 in the Nikkei and it dropped 75%. I think the very same thing could happen. They’re going to fight it. I mean, the fed and everybody is going to fight it.

Jason:

They’re going to fight it by more QE, right?

Bill:

Yeah.

Jason:

They’re going to fight it by more money creation.

Bill:

Yeah, but I don’t, we don’t live in a vacuum and I think that there’s going to be a the economies are going to take it in the chi, not just here, but all over the world. It would be very interesting to see today, on this Thursday that the United Kingdom is having an election. That’ll be very interesting to see and as we watch all of this okay out, I just think, as I said, at the end of the Keynesians, Keynesian philosophy always come to an end and I think we’re approaching that sooner rather than later.

Jason:

Very interesting. Bill, give out your website. Tell people where they can find ya.

Bill:

It’s BillTatro.com and it talks about, I have a company called GPS for Life, you can take a look at that, it’s all there. My book is there. My writings are there. Former radio stuff is there. So, it’s all there in one spot. BillTatro.com.

Jason:

Awesome. Bill, thanks so much for joining us. It’s always interesting to talk to you.

Bill:

And it’s always a pleasure being on your show, Jason, thank you once again.

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