In this episode, Jason Hartman looks at the potential reallocation of brainpower, venture capital, and tech startups. He also shares that more than 300,000 New Yorkers have bailed from the Big Apple in the last eight months. In the interview segment of the show, he talks to Doug Casey. They discuss the possibility of US facing a veritable cultural revolution and how Covid-19 affects the dollar and real estate taxes, particularly those in big cities.
Announcer 0:02
Welcome to the creating wealth show with Jason Hartman. You’re about to learn a new slant on investing some exciting techniques and fresh new approaches to the world’s most historically proven asset class that will enable you to create more wealth and freedom than you ever thought possible. Jason is a genuine self made multimillionaire 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 0:54
Welcome to Episode 1596 1596. And I hope this isn’t boring you because it is beginning to bore me. I must say, and we will not. And I’m not talking about politics, by the way, not interested in talking about politics at the moment. But we’ll be back to that, especially as it affects our money and our investments. And it does affect our money and investments. But the subject of people leaving big cities, you know, this is maybe getting a little bit overplayed. Yeah, I predicted it before anybody I predicted it back in February, when I saw what was going on in Italy. That made me especially aware of it, but also even in back in Wu Han. Okay. But now, there are whole other reasons. And here’s my new prediction about this. I’m going to play a clip for you here in a moment. And of course, today we have part two of Doug Casey from yesterday, not no need to listen to them consecutively. Not important. Just catch yesterday’s episode, if you haven’t already, whenever you can, if you’re hearing this first, it doesn’t matter. They can, they can be in any order, not not critical. But as far as this mass migration that we’ve been talking about. So the new thing is what I announced on Sunday, the flattening of America, hugely significant, very, very important concept, the flattening of America, if you did not hear my Sunday live stream where I went into that, you can go on YouTube, or Facebook, YouTube’s probably the better place to watch it. If they haven’t censored it and taken it down yet. or Facebook hasn’t. Oh, the tech gods, we must bow to the gods of technology. So I talked about the flattening of America, how is people are leaving these cities, these bright, ambitious people who, in a Darwinian sense, couldn’t afford to live in these expensive areas like New York, San Francisco, la these expensive areas, Boston, whatever, right? And they couldn’t afford this high cost of living unless they were very educated, smart and ambitious, right? Those people. It’s just Darwinism, right? That’s all it is just Darwin acting in an economic sense. Its economic Darwinism. But as those people leave these overpriced, expensive cities, for a whole variety of suburban markets around the US, guess what we have? We have the flattening of America, we will see one of my predictions on this is we will see a massive reallocation of brain power, as the cities have experienced a brain drain and that will continue. And the high tax high crime, high cost of living jurisdictions, usually liberal, usually leftist politics, usually democrats running them. They have a good knack at ruining everything. You know, listen, that’s not even a political statement. Just look at Detroit. Look at all the other places they’ve touched. Look at Baltimore. It’s a disaster. Look at California. Look at Seattle. Look at Portland, look at New York. I mean, this is not an argument, folks. It’s simply an observation. It’s a fact. Okay. So as people leave these places, these bright, ambitious educated people with way more spending power, okay. As they leave those places, we will see a reallocation of brainpower, we will see a reallocation of venture capital, we will see a reallocation of tech startups spread all around the country, whereas before They were concentrated in Silicon Valley and in Silicon Alley, and in the tech triangle, and so on and so forth. Now, that is flattening America, it is spreading out, it will be more evenly dispersed. And that is great news for all of you, friends, who have been following my advice for the last 1617 years, and investing in these markets. So our advice really didn’t change much. It’s simply an accelerant to what we were already advising. And now, listen to this clip. And this is from the New York Post, okay, and you’re going to hear some residents interviewed. It’s just a very short clip just about a minute. But I think you’ll find this insightful.
‘Excerpt from a clip’ 5:48
It was a pandemic. But really, I think the uptick in crime was really concerning for us. And had it just been me and my husband and my dogs, I don’t think you would have had a problem staying but
Jason Hartman 6:00
you know, is it amazing to you that everybody just talks with totally improper grammar? If it was just me and my husband? Since when does me come first in the sentence? It would be my husband goes first. And then me or I as the case may be right? Like, it’s unbelievable how just nobody cares about any of this stuff anymore, do they? It’s so sad. Oh, well. And nobody cares about how they look or dress anymore, either. So sad. Watch old movies, watch old TV shows continuing Tanjung alert, back on track.
‘Excerpt from a clip’ 6:38
Once we saw the city start to devolve and things become less safe and less clean. And we’ve been back several times to do various things in the city. So we’ve seen it firsthand. And it really, really upset us. And it’s not really a place we want to raise a child anymore.
‘Excerpt from a clip’ 6:54
To have spaces like this. And Atlantic Ocean.
Jason Hartman 6:59
So what you’re looking at now, well, you’re not looking at it, but I am. You’re looking at a man in the Hamptons. Okay. You know, it says New Yorkers explain why they’ve fled to the Hamptons. And
‘Excerpt from a clip’ 7:13
just greater space and where I live in an outdoor area that I can just step out to have a great circle of friends out here, many of which have come out here. Also more semi permanently.
‘Excerpt from a clip’ 7:29
It’s been amazing, actually.
Jason Hartman 7:33
And the picture of the guy in the Hamptons with the See, but you get the idea there is this mass migration out the crime is increasing dramatically. Now, check out these statistics. More than 300,000 New Yorkers have bailed from the Big Apple. In the last eight months new stats show, city residents filed 295,103 Change of Address requests from March 1 through October 31. According to data, the post obtained from the US Postal Service under a Freedom of Information Act a FOIA request, right? That’s great that we have the foil laws, right where they can get information like that, since the data details only when 11 or more forwarding requests were made to a particular county, outside New York City, the number of moves is actually higher. And a single address change could represent an entire household, which means far more than 300,000 New Yorkers fled the five boroughs. So, folks, this is just hugely significant. And my prediction is that it will lead to a flattening of America. And that’s a good thing. That’s a really good thing. A very good thing. You should be happy about it. Like Trump would say he’d be saying it’s a very good thing. It’s fabulous. It’s it’s just a phenomenal thing. No, not like that. He would say it like it’s fabulous. It’s very good. It’s it’s basically Oh, if that guy isn’t reelected, I’m going to miss his unusual speech patterns. But then again, Joe Biden’s got some unusual speech patterns too, because he’s just mentally deficient. I mean, what else can we say? Right. So major crimes have been on the rise this year, the number of murders in the Big Apple in New York, hitting 344 by October, surpassing the count for all of 2019. The number of shootings through November 8 is up. You ready for this? folks? You ready for this? Are you sitting down Are you ready? Are you ready? Here it comes. The number of shootings up through November 8 is up 94% 94% increase over last year. Wow. That is so sad. I mean, can you imagine? If you, hopefully none of you, probably none of you this applies to because you’re listening to my show, you’ve been following my advice for the past many years. And you don’t own these expensive properties in New York that are plummeting in value. Okay. I mean, the crime, the taxes, the interference in people’s lives, the brain drain people just fleeing from these places. And the same is true of California. But in California, it’s much less concentrated. Because obviously, it’s a much bigger place, you know, geographically and in terms of population to I mean, it’s almost 40 million people in California but declining rapidly. And the thing about California, is that the the demographics Well, I should say the population demographics, just population numbers don’t change as dramatically. Why is that? Well, because you have these silly sanctuary cities. Well, not silly, but epically stupid sanctuary cities. And you have people coming there for handouts. Well, the people paying taxes, and obeying the law and contributing, not wanting handouts are leaving. So the net migration, the net out migration in California is not as pronounced because they have, you know, build themselves and basically advertise themselves as the place to come for handouts, the place to come if you want to leech off of society. Now I get it, you know, I’m a bleeding heart capitalist. Okay, I’m not that cold hearted. I understand that. People for temporary points in their lives need aid. Okay, almost nobody, unless they are permanently disabled, needs aid forever. Okay, for their life. That should only be for the vast, vast majority of people, a very temporary situation to help people get back on their feet. And there is a place for government in both of those categories. But sadly, the leftists that are that have way more power than they should have made it a permanent condition. Because it disables people. It makes them permanently dependent on the government, large apps. And that is obviously a recipe for disaster, you know, happens over and over again. So this is the flattening of America we’re seeing but we are also seeing a massive amount of money pour into the suburban markets. Now granted, some of these suburban markets are ultra ritzy, expensive markets like the Hamptons. Okay. That’s not what I’m talking about. Yes, there are certainly wealthy New Yorkers that already had a second home in the Hamptons, and they just went there. Big deal, right? Forgive me. I can’t remember her last name, but Dottie, the CEO of Douglas, Elliman real estate on the show several months ago, talking about that, right. So so that’s a trend, but the most of the bulk of the trend is people moving to less expensive, reasonably priced suburban markets where they can have a better life for less money, and certainly lower taxes as well. So this is a giant trend, folks. It’s a big deal. And you are on the cutting edge to take advantage of it. And I got to tell you, I am really excited about our webinar on Thursday for Charlotte, a whole bunch of you have signed up already. So Charlotte, North Carolina, just a fantastic city. Absolutely love that city. I’ve made good money on property there myself. I told you about how I cashed out, did a 1031 exchange on my last property there. I got two for one. It was a great deal. So join us. For that go to Jason hartman.com slash Charlotte. Jason hartman.com slash Charlotte and register for our Thursday Charlotte webinar. You do not want to miss this webinar, in addition to having a market profile internet using you to our new construction builder in Charlotte, you will meet him. And you’ll see pictures of the properties. He’s got really some great offerings there. But you’re also going to get some content. I forgot to do that with our Alabama webinar that we did recently. By the way, if you missed that one, you can find the replay at Jason hartman.com slash sweet home. But I didn’t do any teaching on that one. In this one, I remembered to do a little bit of teaching, and show you some charts and things that I think would be interesting. So you get both of those things for the Charlotte webinar on Thursday, Jason hartman.com slash Charlotte.
Now let’s get to part two of Doug Casey v. International man, the end narco capitalist international man, here he is. But hey, let’s talk about the election. Doug, there’s so much going on. We got to get to that, you know, what, what can we expect? You know, it, the whole system, I think we’ve all can agree that it’s it’s corrupted, it was corrupt without, you know, voter fraud. miscounting balancing now that because we have a two party system that makes it corrupt on its face, but we are where we are, what can we expect?
Doug Casey 16:14
I think we can expect the worst in this election. Because the country is really divided. Philosophically, it’s like a marriage, where you and your wife have learned to hate each other. Because you just disagree on what’s right and wrong, disagree on what’s good and bad, what should and shouldn’t be done. And that’s the way things are right now, between the red counties and the blue comedies, I don’t see how it can get better people can change their whole psyche. So the the optimal solution to what we’re confronting now, a veritable cultural revolution in the US. And I use that word, I’m trying to use that word accurately. What we’re on the edge of is something that’s similar to what China went through, from 1966 to 1976. This is really serious, really ugly, where people really differ on the most basic levels of things. So, but I don’t see how the US can break up so that people are in different political entities, easily, it can happen should happen. Instead, they’re going to be contesting for who controls Washington and who gets to bossy Brown. This is not a happy situation. No,
Jason Hartman 17:37
it’s definitely not a happy situation. But what can we expect? What are the markets going to do? What about commodities prices? What about housing? I mean, the housing market is booming. It is I’ve never, I’ve been doing this an awful long time, Doug. And I’ve just never seen a market with inventory this low. And this much might mean that migration is a big part of it. Thankfully, our investors are buying suburban properties. So that’s where all the action is. Right. But yeah, I mean, if you’re in New York City, or San Francisco, I think you’re you’re in bad shape, or downtown LA or, you know, Seattle, or any of these high density areas where you’ve got BLM, and you’ve got COVID. And, you know, all of these, all of the civil unrest, but what’s the market going to do real estate stocks, commodities, interest rates, whatever you want to say about that? I mean, you’re a financial guy.
Doug Casey 18:28
Well, I agree, first of all, farms, property in the big cities concern, they’re essentially dead ducks for a good a long time, because the governments of these municipalities are bankrupt, and their main source of income is real estate taxes,
Jason Hartman 18:46
and then that is under attack, that’s going to suffer greatly. And they’re going to go even more bankrupt than they already are. So if you’re investing in municipal bonds, in these kinds of places, watch out because you’re likely to see some defaults, that’s going to be pretty ugly in the pension crisis.
Doug Casey 19:04
And if you own property in these big cities, their real estate taxes are going to go up. Furthermore, your occupancy is likely to go way down in the futures mouth. At the same time, as I found an Aspen, the rich are moving in, because it’s safe and quiet. And people generally share values. With you mostly liberal values, I’ve got to say, or I shouldn’t even use the word liberal or I should say status and collected the values are very different from what our liberal values historically have been because it comes from the word
Jason Hartman 19:41
hypocrite values in those places.
Doug Casey 19:43
Yes, right. So what are you going to do right now with at the same time, Real Estate’s being driven upwards, because it floats on a sea of debt. And right now with interest rates, real interest rates being a negative national interest rates to 3%, something like that in the real world, eventually, interest rates, first of all, the dollar is going to turn into toilet paper because they’re creating trillions of them, as we see. already created, trillions are crazy, trillions more. They have no alternative by Mexico makes no difference. Yeah.
Jason Hartman 20:22
In both vendors, they’re both going to dole out the goodies, the stimulus, whatever they’re going to print for, and they’re already printing. I mean, it’s just a foregone conclusion. But done. Just you know, I mean, I know the inflation rate is a lot higher than the government would lead us to believe, then the official stats say, but even, you know, that statement notwithstanding, and we both agree with that statement. I’m sure you agree with me, without even answering, you know, there still hasn’t been anywhere near as much inflation as we might expect, given the amount of money creation coming out of the Great Recession, this time around with COVID. The inflation, there’s some inflation there, for sure, a lot higher than we’re being told. But it’s not dramatic, yet,
Doug Casey 21:08
is required. Correct. This is in many ways a mirror image of the 70s when the amount of money being created wasn’t remotely comparable to what we have today. But retail prices were running away in the 70s. People forget that Nixon put on wage and price controls,
Jason Hartman 21:25
right. I remember that. Yeah.
Doug Casey 21:27
Okay. So it’s not really as bad as that. But the financial markets were devastated. They were in real terms as cheap as they’d been during the 1930s. So now, all that money is flowing into the financial markets, stocks, bonds, and real estate, but it’s going to float down to a retail level too. So look out. And eventually, while the dollar is really inflated out of existence is very, very serious interest rates will eventually go back to the levels I think, and beyond what they were in the early 80s, which you might recall, we’re talking 12 and 15%, for government borrowings. We’re looking at very tough time. So what do you do? What do you do can’t buy most stocks, they’re grossly over price. Bonds are a triple threat to your capital. You’ve got interest rates, you’ve got default risk, you’ve
Jason Hartman 22:25
got the current huge inflation risk.
Doug Casey 22:28
Forgot to monitor the bonds. I see a lot of problems with a lot of kinds of real estate. Summer. Okay, much better than others. So where do you go? Well, I can see at this point is commodities in general, but in particular, the precious metals, gold and silver, I hate to tell people to buy gold, when it’s all time highs, but I think it’s going much higher, much higher. And more than that, I think what you have to do is reorient your psychology. You cannot really be an investor today, you can’t really be a saver today. you’re forced to be a speculator,
Jason Hartman 23:12
which is not fair, because older people who’ve saved money who’ve been conservative who delayed gratification, are forced into these speculative investments that can ruin their retirement. I mean, yes, it’s it’s so unfair. What’s happened now this isn’t new. This isn’t news. This has been going on for decades. But it’s it’s even more acute. Now. I’d say right.
Doug Casey 23:34
You’re quite correct. Yeah. The only place I think you should go right now is gold stocks, which gold is going higher, Silver’s going higher. And these stocks are very, very cheap. Right now. They’re under owned every gold producing sock in the world right now. Their market cap is not quite what the cat or just slightly greater I should say. Then the amount of cash that Apple alone has in its bank accounts. That’s how cheap they are. And most fund managers have been they don’t believe in gold. They think it’s a pet rock. Yeah. Well, they
Jason Hartman 24:15
think it’s a barbarous relic to quote Alan Greenspan.
Doug Casey 24:19
Yeah, so they don’t own gold. It’s very under owned. Gold stocks are very, very cheap. looked at from many points of view, price earnings ratio, all kinds of things. Okay. All right. So
Jason Hartman 24:32
but what do you say commodities in general? And what about rare earth metals, you know, and the thing you know, the thing that’s the wild card, Doug, it’s a little further away, but I don’t know if it’s that far away is the asteroid mining. I mean, that could just tank the market for all the fees what we consider precious here on earth because it’s so abundant in space, right. And, you know, Japan has already achieved that. They have sent a probe to an asteroid collected material brought it back to Earth. We can do it today, you know, and there are companies that are, you know, raising money to do just this, you know, as we speak.
Doug Casey 25:07
You’re quite correct. And Ilan Musk is hoping to land on Mars by 2024. Not long thereafter, make it a colony
Jason Hartman 25:18
tomorrow, salsa singing so and then for that whole Mars project needs to include asteroid mining, just for the water, if nothing else, but yeah,
Doug Casey 25:28
yeah, things are advancing integrated. Moore’s law could not just be computers and a number of robotics. Yep, and nanotechnology and biotech. So it’s a wonderful time that we’re moving into from one point of view, but I’m afraid from politically and economically and our personal freedom point of view, it’s going to be very, very scary. That’s why it’s that way. That’s one of the reasons why I’ve written with my co author, john hunt, series of novels exploring what’s going to happen in the future. And what’s happening now. We just came up with this commercial just go for it. Yeah, assassin. Copy with me. And basically, it’s talking about what’s happening today. And the question is, Charles Knight, our hero is trying to reform the unjustly besmirched occupation, a political assassination. And the question we asked us, is political assassination, moral or immoral, right or wrong? isn’t affected doesn’t really change anything? Or does it make
Jason Hartman 26:41
the CIA does it? So
Doug Casey 26:47
if you believe that bill clinton actually committed dozens of Arkansas sighs, which should be termed assassinations?
Jason Hartman 26:56
I’ve never heard that. from Arkansas, folks. So yeah.
Doug Casey 27:05
Politics, people kill each other, mostly in the form of wars, where hundreds of thousands of people are involved, but on a personal one to one level. What about assassination? And I’m interested in the moral questions as much as the technical questions.
Jason Hartman 27:22
So the non the novel explores it in, can people get that international man? Or do they have to go to leftist Amazon or elsewhere?
Doug Casey 27:31
Well, we can watch international man.com and hardback novels will be available there shortly. But at the moment, yes, Amazon does do a service by the largest publisher in the world.
Jason Hartman 27:47
Until they censor you and shut you down. Yes. No, I haven’t had any problems. They’ve shut a lot of other people down.
Doug Casey 27:54
Well, yeah, I’m sure that’s in the cards. So get this book before because it’s highly politically incorrect. And I kind of say that I’ve been reading the book myself, having written and edited it. But now I’m reading it in the form of a paper like an ordinary reader. And it is one hell of a good book. I’m very proud of it. Everybody should read it. Because most people think it’s about Trump and killing Trump. Although we, we do a lot of things that are very, very different. But no, by this book, I promise you,
Jason Hartman 28:30
it will be about that. Because I would guess that out of the two terrible choices we always get you would have been a Trump voter more than a Biden voter, right?
Doug Casey 28:40
Well, first was skill and courage does, you’ve got to choose? That’s correct. Yeah. Because at least Trump is
Jason Hartman 28:49
better than the alternative for sure.
Doug Casey 28:51
Yes, he is. He’s a cultural conservative. He’s at least like to see the US return to the days of Ozzie and Harriet and Father Knows Best, as opposed to cop Kamala Harris, who actually would like to foment a Marxist revolution with her buddies in the Gang of Four AOC. And the rest of them.
Jason Hartman 29:10
Biden is determined to be the winner, she may well become president because Biden is needs to retire. No,
Doug Casey 29:19
I mean, I, you know, you got to lose respect for the average voter, assuming that the election results reflect the average voter, which is another question. How much cheating is there? Quite a bit, I’d say. Yeah, probably on both sides, but much more on the democrat side. Now, this is this election is a major turning point in the US, it’s going to be as serious as the election of 1860. And I hope we don’t go into a civil war. I hope it’s just turns into a mellow session. of the different groups in the US but unlikely. Nobody wants to see the US for and I don’t say America. America is a concept and a wonderful one. But it’s a duck duck that’s been washed away outside the United States. And nobody, no president wants to see the US break up on his watch, which is pretty much the thinking that Lincoln had.
Jason Hartman 30:15
Well, we shall see. Let’s all hope for the best. And we are on the edge right now. Everybody wants to know what’s going to happen with the selection. And it’s just crazy time. So got to pray for the country. And let’s hope for the best. Doug, thanks for joining us. The website is international man. Calm, right. Yes. All right. Thanks again. Good to have you.
Doug Casey 30:37
Thank you, Jess.
Jason Hartman 30:43
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