In today’s episode, Jason Hartman interviews Charles Goyette, future Venture Alliance Speaker and author of Red and Blue and Broke All Over: Restoring America’s Free Economy and the New York Times bestseller, The Dollar Meltdown: Surviving the Impending Currency Crisis with Gold, Oil and Other Unconventional Investments. Charles discusses his new book: Empire of Lies, which addresses how people were surprised by the recent upheaval. They talk about the three items to keep your eye on about Trump economics, the problem with the concept of free trade in America, and Hillary’s love of war.
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Welcome to the creating wealth show with Jason Hartman. You’re about to learn a new slant on investing some exciting techniques and fresh new approaches to the world’s most historically proven asset class that will enable you to create more wealth and freedom than you ever thought possible. Jason is a genuine self made multi millionaire who’s actually been there and done it. He’s a successful investor, lender, developer and entrepreneur who’s owned properties in 11 states had hundreds of tenants and been involved in thousands of real estate transactions. This program will help you follow in Jason’s footsteps on the road to your financial independence day. You really can do it on now. here’s your host, Jason Hartman with the complete solution. Real estate investors.
Jason Hartman 1:03
Welcome to the creating wealth show. Thank you so much for joining me listeners from around the world in 164 countries. This is your host, Jason Hartman. And I am very thankful for all of you. And I am very thankful that you listen to the show. And I am very thankful that you spread the word about the show, and also very thankful for your comments and reviews about the show. So Happy Thanksgiving. We need a we need one time a year at least to remind us to be thankful. And if you are not in the US and you don’t celebrate Thanksgiving, it’s just a good reminder. Anyway, so many of us. Certainly I’ll just speak for myself, maybe not all of us take all of our blessings for granted or so many of our blessings for granted and it is really important to remember that it is not happy people who are thankful is not happy people who are thankful. It is thankful people who are happy. It is thankful people who are happy. Thanks for tuning in always and for subscribing to the show and, and for everything else I already mentioned. So we’ve got a lot of amazing stuff going on. Today our guest will be Charles goy yet talking about what Trump means for investors and for the world. He is also one of our speakers at our upcoming venture Alliance event in Phoenix, Phoenix and Scottsdale Arizona coming up in just over a week. If you’d like to join us for that you can come as a guest. This is a venture Alliance weekend. We’ve had many of them so far. You’ve heard me talking about them. The venture Alliance is almost two years old, I guess right or about a year and a half old now. And it’s just been a phenomenal group. I love our venture Alliance members. We share some great things there. So, join us as a guest. You know, check it out, see what it’s all about. Go to Jason Hartman comm click on events. also go to venture Alliance mastermind.com see what the group is all about. It’s for real estate investors and business people who wants to take their game to the next level, live life to the fullest and experience real abundance. Charles gray will be a speaker at our upcoming event. We got some other speakers too. We can’t announce them because we are waiting for confirmation but very excited about this event. So again, venture Alliance mastermind.com and also Jason Hartman calm in the events section. You really must check out the venture Alliance. And also well, you are in the events section at Jason hartman.com. I have not announced yet. And many of you have been asking about it and many of you have all already taken action and registered in the absence of me announcing it on the podcast, but that is meet the Masters 2017 Yes, it is confirmed it is in Irvine, California. It is not at Hotel Irvine or Hyatt Regency Irvine as we’ve had it before. We’re trying another hotel this time, we needed a larger room. So we’ve got that coming up in January as the usual weekend and that is available to you at Jason hartman.com. In the events section, you can register now early bird pricing for Black Friday and it ends on Friday, by the way so you must register now because the price goes up on Saturday. It’s going to go up 100 bucks on Saturday. So register now for meet the Masters 2017 and we have held it Now 19 meet the masters. Why can’t I tell you exactly? Well, it’s because we used to do it twice a year. And that event requires so much coordination and so much work that we, we only do it once a year now. And so it’s it’s every January at the beginning of the year. And we will fly in many of our local market specialists and property management teams flying in from around the country. And some other great speakers on some fantastic topics as it relates to asset protection to real estate investing, to just upping your game and meeting and networking and that everybody says that they just absolutely love the networking at that event. You really get to talk to real investors who are really doing this stuff and many of them have been investing with us for many, many years. Come out to that end. Join us for meat masters 2017. Again, go to Jason Hartman calm and register for that. And without much further ado, I’ve got a lot to talk to you about, but maybe you can tell them my voice I’ve been a little bit sick. I was in Kansas City last week and in his deposition I was in god what a hassle. Slow talking really boring attorney deposing me, and that is for the results property management case in Kansas City. As many of you know, I felt that this company was ripping me off and I posted a video about them, they sued me over it. I posted three podcast episodes about it on one of my other shows. They sued me over that a second time. Yeah, being a consumer advocate is not an easy business, folks, you’re definitely going to make some enemies. I can’t talk much more about the case because, hey, I’m in litigation. And it’s always quite a challenge to go through litigation. But anyway, many of you have heard that story before a long time ago. It’s been going on for six years. Yes, six years now. Wow. Really, really amazing how absolutely messed up our legal system is, but hey, I’m thankful that we have a legal system. And I’m thankful that compared to many parts of the world, the American system is pretty darn good. And early next year, I will be announcing and launching at the same time I announce it, my new startup business called free court, free court calm you can go to the website now. There is a podcast that we are launching about free court and it is an online dispute resolution platform. Because I think more people need access to provide recourse when they get ripped off or they feel they haven’t gotten a fair shake. Why should they have to go spend 150 thousand dollars in this incredibly slow, ridiculous court system. Many of these judges are just, they’re just wacky, or they’re corrupt even worse, you know that happens to you just never know what you’re going to get. So I came up with an idea to solve that problem. And I’m very excited about it. I came up with this idea several years ago, finally getting around to launching it free court comm you’ll hear more about that next year, and it could help you with your real estate investments and your life in general. So a lot more about that. Also an interesting article, love them or hate them. But Mr. Donald Trump, our president elect, there has been a big spike in consumer confidence since he was elected. And I will talk more about that next week with being a little sick. It’s just been a little hard to not have a foggy head number one and number two, my voice as you can tell it So great. So I’ve got a bunch of stuff that I want to dive in with you next week. And maybe we’ll just do a monologue show where I get through some of this stuff with you. So, look for that. Happy Thanksgiving to all and remember, it is not happy people who are thankful it is thankful people who are happy. Let’s get to our guest today, Charles go yet who is speaking at our upcoming venture Alliance event in Phoenix. And I hope you’ll join us for that. And let’s talk a little bit about what President electrum means to investors and to the world.
It’s my pleasure to welcome a returning guests back to the show and that is Mr. Charles glow yet he is author of red and blue and broke all over restoring America’s free economy and the dollar meltdown surviving the impending currency crisis with gold oil and other unconventional investments. He’s got a new book coming out, and he’ll probably tell you about that himself. Charles, welcome back. How are you? Jason? It’s great to speak with you again. I’m just fine. Yeah, it’s good to have you and I am looking forward to seeing you in person, because you will be speaking at our upcoming venture Alliance mastermind event in Phoenix. So it’ll be great to have you there. Tell us what is going on with you lately. We’ve got a lot to talk about a major shift in the political landscape. Wow, it’s a pretty pretty crazy time right
Charles Goyette 10:32
now. Isn’t it the truth? It’s, it’s like that old Chinese curse that you know you may you live in interesting times. It’s sure. It’s certainly been interesting. Well, I’ve been partaking in the political discussion just about like everybody else, I guess, although from perhaps a little different perspective than the the partisans of one party or another. I’m very, very happy to see the world Why’d attack the word worldwide rebellion against the prevailing establishment. And by that, I mean, and and it manifests in all forms. It certainly was apparent in the Brexit vote that set Europe on its heels. It was apparent in the democratic party with the Bernie Sanders campaign and it’s certainly apparent as the victory of Donald Trump. I think this is a great thing. I think, the establishment in the Western world that has done what they have done to the American middle class and to our long term prospects for prosperity, and play plagued this country with an Indian series of Foreign Wars. And my Lord, we’ve been with us it’s been it’s been 15 years now in Afghanistan and Iraq going on for a dozen years. So and Indian War with no no prospect for victory in sight, and only the most radicalized elements of the Islamic world, you know, remain safe. I mean, it’s just unbelievable what we have been doing at the behest of the worldwide global establishment. So I’ve been very happy to see the, you know, the wholesale attack on them from so many quarters. And that is actually the subject. I have a new book that I’ve just about, finished and I sell off to my agent will see or what publisher it ends up with, but it’s basically it comes, Jason, it comes from a great a great quote from my friend and longtime broadcast partner, Dr. Ron Paul. And he said something in one of his books, and it might have been just a little throwaway line, but I think it’s one of those things. It’s going to end up in the Bartlett’s book of great quotations. He said, he said, truth is treason in the empire of lies. And so I had that great. So I just picked up the empire of lies as the working title for this book. And it’s really the subtitle I think makes it clear it’s the it’s the sorrowful Story of the establishment war lives warlords and Indian foreign meddling.
Jason Hartman 13:06
Yeah, it reminds me of that George Orwell quote that said in Well, how did it go? You know, dead it said in basically in times like this telling the truth is a revolutionary act or something to that effect, you know, or in in times of universal deception, telling the truth is a revolutionary act. I believe that if I didn’t bastardize it too much. And that’s George Orwell quote, and that’s exactly right. But you know what, like you said with Brexit with with oddly, liberals will never buy into this comparison, but you made it and I think you’re exactly right, with Bernie Sanders and Donald Trump, similar in so many ways, oddly, because no one would usually make that comparison as you did and I do. these really are revolutions in the establishment is falling Thank God it’s falling apart because it’s needs to this is the establishment that has put the blue collar workers that the democrats claim to love and support out of work with crappy trade agreements and, and all sorts of regulation chasing business out of town. You know, you look at Michigan as the poster child for that, obviously, Ohio being the second one, but New York and California are far behind. You know, in Trump, he reached out to those people, you know, in an odd way and got the support of normally Democratic voters. You know, Bernie Sanders drew some good attention to a lot of problems, although I think his solutions were mostly delusional and wishful thinking. But you know, it was interesting that he brought up a lot of the things he did so yeah, it’s a it’s really interesting,
Charles Goyette 14:44
and I think most amazing phenomena about this is that is that this is this is all quite clear to you. And it’s quite clear to me and it’s quite clear to so many people live in flyover country and yet in the the establishment centers, and most Particularly in the media centers, they’re utterly perplexed. They have been blindsided by this. They have no idea. They had no idea this freight train was coming. They have no idea that people in America are disaffected and disenchanted with what’s been going on. They are so wrapped up in the cocoon of ignorance, so completely out of touch with the American people. And what’s really been going on in the economy. What’s really been going on with the destruction of the middle class and our long term prospects. It was so out of touch that they are just they are staggered. They’re wobbling around as not been thunderstruck by some would not have possibly happened.
Jason Hartman 15:42
You are absolutely right, especially on the side of the Liberal Democrats and they they are more out of touch, I believe in Washington, DC. These are like these elitist people like Nancy Pelosi and Hillary Clinton, they’re just they’re just totally out of touch with with with American. I believe it was Hillary many years ago who referred to that term that you just reiterated the flyover states, you know, kind of dismissing them. Well, they came out and voted, thankfully. And they voted for change. And I’ll tell you something that, you know, Trump is certainly rambunctious, he’s a little scary. At least I’ll say that. But Gosh, I’ll take a gamble. And and that’s what America wants to do also. So I can’t imagine it could be worse than the establishment we’ve had for the last four or five decades, which is just totally out of touch. I mean, these are just insiders. They are crony capitalists. They have been screwing the country in so many ways. And
Charles Goyette 16:48
I think I’m glad you’re so understated about this.
Charles Goyette 16:54
I’m usually very understated like that. Yeah, exactly. Well, so So tell us what you think. Trump means to the economy and to America in general. I mean, it’s it’s still hard to tell it’s obviously very early. What are your thoughts? Well, there are a couple of things that are important to be they would be important to me, regardless of who won them. And one of the problems is institutional or systemic problem with American government and the presidency. The President Now, over the course of years has acquired such broad dictatorial powers, that it is astonishing. And it is a very serious mistake for Republicans or conservatives to say these broad dictatorial powers are fine, as long as our guy has them and then think thinking that they will somehow evaporate or dissipate when the other team takes place comes up to bat because it doesn’t happen that way. By the same token, you know, all these people that were totally happy with Obama, you know, issuing a slurry of executive order, you know, and the ignoring of the Constitution. The laws when it’s served as administration, political purposes, all of those people now are, if they’re awakened alert, they have to be wondering, Well, why did we Why did we let this go on? Of course, that was the design of the American Republic from the beginning is that none of these people were to have the kind of powers that have been allowed to occur in the presidency. But if you think about it, the President, the president right now, can send American forces anywhere in the world to fight any time. Without a declaration of war. There has been a declaration, Lord knows we’ve been fighting wars all over the world, but there hasn’t been a declaration of war since December 7 1941. So there the president is able on his own say so to go and fight anywhere in the time, the president his own say so can impose currency controls, exchange controls, they plan as you know, from have been implemented. You know, the President can order the assassination of us Listen, without trial or conviction.
Jason Hartman 19:04
just just just send a little drone up and, and knock people off. You know?
Charles Goyette 19:12
It’s it’s, I mean, already scarers have accrued to the President. And I frankly, I don’t want anybody, there’s nobody. There is nobody on the political spectrum that I trust so implicitly that I think that his successor can’t do something wrong with it with these authorities. So the idea was to, you know, to restrain the the use of governmental power, and so on, but man, they have accrued to a tremendously steep degree now, and they’re in the hands of a very authoritarian individual beginning in January. I mean, Trump’s away from swinging his authoritarianism,
Jason Hartman 19:47
right. And it’s interesting that you didn’t even have to mention the use of czars, which Obama was certainly using pretty intensively you know, these czars that have there’s no recourse I mean with it with They these people that can just sort of be the environmental czar.
Charles Goyette 20:05
I mean, it’s just crazy. So,
Jason Hartman 20:07
so are things moving? Do you think things are going to shift back into the right direction? The interesting thing about Trump, as rambunctious is he is he says some really outlandish stuff, obviously. But you know, he doesn’t owe a lot of political favors. I mean, he ran a really interesting campaign, a low budget campaign. He’s not indebted to so many people as all of these others are, you know, I think he can govern from a more sensible perspective. Hopefully,
Charles Goyette 20:40
well, that is one side of the coin, but with Trump, you get for everything like that. You get two sides, and I’m not, you know, I’m not in any kind of debt against him. I actually, you know, think that the prospect of being a nuclear exchange that can incinerate human beings all over the planet has been reduced. substantially with Trump’s election. And I think that’s a very, very good thing. I mean, I think it seems to me abundantly clear that Hillary would have us in some sort of a nuclear showdown with Russia seems absolutely inevitable that she would have done this. So was Yeah,
Jason Hartman 21:15
Hillary, Hillary and Russia, you know, I think that if Hillary would have won, she would have had to, you know, she would feel like she had to prove herself against Putin. You know, she’s a woman. So she had, she’d have to, like, go overboard to, to show strength or so. Well, you’re right,
Charles Goyette 21:32
and serves me deeply. Yeah, she used I think she used that. That whole dynamic against Obama with regard to the Libyan fiasco. I mean, this was basically hers. And you will remember when she ran against Obama, eight years ago, she had those commercials about, you know, who do you want to get the 3am phone call? And when the phone rings in the middle of the night, and it’s a world crisis, who do you want and she was basically saying, you know, I’m tough and I’ve been around Long time you’ve got some guy that’s wet behind the ears, Barack Obama, you know, has no experience hasn’t met world, yada yada yada yada. And so I think he was sensitive to that charge. And so when I see the rest of her warmongering truth, decided to replicate the failure of Iraq and Libya and turn it into a jihadist hellhole, which they have done, he pretty much stood down, you know, in the face of that criticism that he had been wounded by and let her do it. So, I mean, I think that is the worst thing that was in the offing in the election was the prospect of nuclear exchange. I think that is the worst thing. And so if that’s better, I’m relatively happy that that Trump is there. Now, you mentioned the positive side of the coin that is not indebted to a lot of people doesn’t have a, you know, a lot of chance or IO use that he’s got to pay off with political favors. The other side of that coin though, is that he has He has not deeply grounded in political or economic philosophy. He’s very impulsive. He’s not he’s not learned with respect to you know monetarist economics or supply side or demand side economics or Austrian economics is your not learned about any of those things particularly, and he disdains them. And one of my friends joke the other day, I’d be surprised if he’s, you know, if he’s read a complete book in the last 20 years. So the other side of this is we really don’t know exactly what we’re going to get from him, but I’ve always maintained that, you know, a good deal of politics is personality. I just not too long ago interviewed david stockman and in the course of preparing for it, I reread his, his book 1984 or whatever your came about when he was a budget director for Ronald Reagan. And it’s a horrifying Out Jason, of this administration that was elected and snapped and out we’re watching the cabinet be put together now for Trump is the same thing. All these cabinet people were brought in. They were all, you know, Reaganites and they were interested in getting a handle on the budget deficit, and shrinking government and so on and so forth. But this was Scotland’s insider account. And you have never seen despite, despite the rhetoric of the campaign, the only regulated bunch was probably Ronald Reagan, because the hogs were feeding at the trough like cannot believe. And I’ll just give you one example. They were, you know, trying to do projections to get a you know, a handle on anything. And the one example that comes to mind is Casper Weinberger, and you would think that Casper Weinberger would have been a pretty good deficit hawk. He had been the budget director himself and he was known as Capitol knife because he’s pretty aggressive teeth. But when he became defense secretary, it was spinning without restraint and And one of the anecdotes that I remember stockland blackout is, is that they were looking at, you know, the next couple of years of preparing budgets and they all got together they had agreement. Okay. We’ll, we’ll do the defense budget and the budget and the this budget map budget, and we’ll put in escalators for the inflation rate. So you remember after you know, the late 70s, it looks like we’re going to have double digit inflation for a long time. I mean, so then the forecast is, let’s just say arbitrarily a 7% inflation rate for one of the next couple of years that they were budgeting for. But you know, became a moderately disinflationary period and inflation payment as I’m just giving giving us representative numbers will take came in at 3%. So having agreed to keep real dollar defense spending the same, they had projected 7% increase to offset the 7% inflation rate inflation came in at three, the Department of Defense and Caspar Weinberger wouldn’t get back the other 4%
Charles Goyette 26:00
Wouldn’t relinquish the the 4% growth that was built in there on the assumption that inflation rate was going to be a lot higher. So you had, you know, the math, the braking deficits and so on and so forth. And you had a seven and steep rise in in the concentration of wealth and wealth inequality in America is a consequences of that period. So, I mean, that stock lens view of personality matters. And when you watch the personnel, all these Reaganites that came in, there weren’t really a Reaganites as much as they talked about it. And when push came to shove, they were willing to demand a lot more for their departments, their specialty, a favors their special interest. And if the budget was going to be bounced, it was going to be at somebody else’s expense.
Jason Hartman 26:46
So that’s the way it always goes, you know, what
Charles Goyette 26:51
actual, is it? Yeah.
Jason Hartman 26:52
Yeah. It’s just disgusting. That’s Yeah, the problem is there’s like a structural problem with government and I’d say And you know, you may disagree with me on any of this. But I’d say one of the big structural problems is the way lobbying works and the lack of term limits. The Founding Fathers never intended to have career politicians. We all know that. But that’s what we got, you know.
Charles Goyette 27:18
That’s sure what we’ve got. So this makes the staffing of the Trump administration particular interest, because the personalities that come in are going to be interesting, and so far, the people that that, you know, we had, we don’t have a treasury secretary, we don’t have some of those people. There’ll be a couple of fed appointments right away. Some of those we don’t see a lot of the economic side of it, but we do see the national security state and the growth of national security state. And it looks like Trump is the only one. Like Reagan was the only Reaganite that looks like Trump in that full triumvirate and the prospects of people for Secretary of State and NSA and so on. So far, it looks like Trump is the only one that wants to stay up there. The confrontation with Russia. So it’s a very interesting, you know, everything’s in motion. We’re in uncharted territory. And we haven’t even talked about the economic outlook, we’re still kind of talking about the, you know, the national security issue and where we would have been for certain with energy and where we still may be an attractive
Jason Hartman 28:19
one thing. Yeah, let’s get on to economics, because that’s where everybody’s mind is really, but one thing I do want to ask you, Charles is Hillary, it’s interesting, everything we just talked about. If a Hillary supporter, were listening to this talk right now, they would say But wait, that’s the opposite. Hillary criticize Trump saying things like, do you want him on the nuclear button when he can’t even handle his Twitter account? You know, she would she would give him a hard time about the way he lashed out about things but really, Hillary was the warmonger of the two I’d say
Charles Goyette 28:55
is what she’d never met a Washington like, and I mean, she has a whole long track record of it back to her husband’s administration that the, you know, and she was quick when the worm turned when the people people woke up to what a folly that arachnid did. You know, she was quick to turn and disavow her support work. But I remember watching her disgusting, arrogant dismissal of people that were trying to warn her in advance of her vote about the Iraq war. But in any event, you know, she’s phones, look, she owns Libya. It’s a disaster that didn’t need to happen. And she did it. I think we can be pretty sure if Wikileaks releases and some other stuff. Well, we can be sure because we know her political ambitions it seems to be it’s quite apparent that she did it to burnish her foreign affairs resume for her contemplated run for the presidency. And of course, all it is say that she had more than anything in a racket cheat and and then they’ve delivered is this debacle in series. which not only, I mean, this is so insane, Jason, you have you have jihadists in Syria, who are fighting, who are armed by the CIA, who are fighting jihadists in Syria who are armed by the Pentagon.
Jason Hartman 30:20
This is your tax dollars at work, these people are paid. We’re creating, we’re creating wars all over the place. And, you know, maybe the way to deal with that is the ron paul method, which is just the more isolationist concept, but you know, we could talk about foreign stuff forever. Okay. What about the economy? Let’s talk about that. I mean, you know, is I think Trump is kind of inflationary, and I don’t think that’s a bad thing, because as a real estate investor, I like inflation. It’s, it’s the home run for real estate investors, especially with debt that can basically be paid off. inflation and of course, rents and property values are indexed to inflation to some extent, but, you know, I mean, you know, if he if he has a more protectionist policy, which he says is what he wants, it’s going to bring jobs back to America. Wages will rise, but also along with that prices will rise to, with the exception of something that is ingrained in everything and that’s energy. I think energy will get a lot cheaper under Trump, because he’s going to explore it and let us become an exporter and we’re just going to produce a lot more energy here, which I think is a great thing by the way, but
Charles Goyette 31:39
you know, what, what are your thoughts? Well, there there are, there are three items that I think we want to keep our eye on with respect to Trump and just to is Uncharted because, you know, we we know in America went to Keynesian economics is and roughly Keynesian economics could be called it’s never called this but it could be called demand side nomics that Keynesian economics is that, you know, when the economy slow when the economy’s in the doldrums, the government will spend money that it doesn’t have to create demand, hence, demand side, but create, create demand. So the government, you know, will, you know, buy shovels for everybody and let them lean on among government jobs and so on. And, you know, to create them as a way, they say I’m sort of priming the pump. By the way, the flip side of that Keynesian idea was that that’s what the government was supposed to do in bad times is spend money that it didn’t have to stimulate the economy. And then a good times it’s supposed to run the surplus to make up for the deaths. Of course, they haven’t done that they, you know, they run just with the good times and bad times.
Jason Hartman 32:45
Keynesianism always distorts markets. It’s always a disaster. It just never rolls. And it always the handouts go to political cronies like Solyndra, so you know that it doesn’t work. Yeah, yeah. Okay, but go ahead.
Charles Goyette 33:00
This kind we’re going to have the very bizarre splicing together of this Keynesian demand side economics and supply side economics. Now, this has never really been done in fulfill bogie, sort of a way that, that it will be done right now, but you have, for example, on the on the Keynesian on the Keynesian side, you have Steve Bannon, the chief strategist guy, and he’s in there, the reason he’s in there is because he is resonated with Trump on a trillion dollar infrastructure plan, a trillion dollars. So this is a massive Keynesian project. This is a Keynesian project. And that’s only part of it. Then there’s the wall, to the extent that gets takes money, and then there’s more defense spending that the Trump has promised. So you have massive demand side or Keynesian spending going on. At the same time, the administration, at least as promised a supply side statement. of corporate tax cuts and other tax cuts. And so you have you have you have a period coming up in which I would say worst of both worlds are going to be joined together in some sort of a weird Frankenstein. Frankenstein’s creation. And then the third thing that I think we’ve watches is the trade war. And this seems to be a very serious thing that I’d like to remind your listeners that that even even in the 1930s, even before the Smoot Hawley tariff, the Smoot Hawley tariff texts 20,000 goods imported into the United States, the huge tariffs into the importation of 20,000 goods under the same sort of a trade war, trade war promise of higher employment domestically and so forth that we got here. But even before it was signed into law by Hoover in June 9, In 30, already prayed started to collapse to cast a long shadow in advance. And I’m like, dude, when Huskies track the legislation, he says clear who’s responsible for the stock market crash in October of 29th. But here’s here’s just giving you an anecdote of the kinds of things that go on when you when you start slapping tariffs on other countries. And, you know, instead of free and markets, you start closing markets and so on. At the time, then all of a sudden, you see foreign nations start creating their retaliatory tariffs, and they create those in advance of, you know, when they see you’re talking about the, you know, slapping down their imports, and they start talking about slapping down our imports. And just to give you an anecdote, olive oil in the 1930s, olive oil production in the United States was nothing that mattered. I mean, it’s so little, it’s not a major part of our economy. But you know, there were all over oil producers in the United States very small, but They got their congressman’s ear and so in the Smoot Hawley tariffs they slept high tariffs to protect you know some little small almost insignificant cronies that have contributed to one or two congressmen one or two districts so they slapped these huge hit high tariffs on olive oil coming into the United States to force the American consumer you know, instead of buying what they really wanted was extra virgin olive oil direct from Italy they wanted to they wanted to make a buy inferior grade American olive oil, you know, to to line the pockets of the constituents. So they so they the politicians write these high tariffs in on olive oil. So what happened in Italy, which was so dependent on the olive oil is small here, it was big enough. So all of a sudden people that were driving American cars in the early 1930s in Italy started they find your tires have been flattened or windshields have been broken and today, I’d say you’d say you know their cars got key which is what happens When you have a bumper sticker of somebody that somebody doesn’t like, your car for barking these days,
Jason Hartman 37:04
well, that’s because you have these very tolerant liberals. Yeah, that’s, I mean, I don’t know what’s interesting about that. I just got to make a comment here. And this is a little off topic, obviously. But, you know, I, you see all these protests and after the post election, and people have the right to protest and I, I, I want that I you know, I protect and support their right to protest, but they’re violent and they destroy property, and that’s just completely uncalled for yet yet. You know, everybody the last time around, the first time Obama ran the second time, everybody was criticizing the tea party and how these are so evil, these rotten Americans, you know, these veterans that are, you know, Nancy Pelosi said these veterans can be dangerous, they shouldn’t get firearms license. I mean, that’s just absurd, completely absurd. And, and yet, I didn’t see any tea party protests after Obama’s election twice. Okay, you know, but you It’s you know,
Charles Goyette 38:01
he didn’t just you didn’t see it, he didn’t see the media sympathizing with them. And, you know, handing them play next is to drive the report for red eyes from all the
Jason Hartman 38:11
safety pins, you know, they got to give them safety pins and
Charles Goyette 38:16
I want to come on come back to the turf thing because it wasn’t just you know that the American car drivers found their tires, you know, had been flattened, the air being led out, and so on, so forth. But Italy retired now, this has been replicated all over the world by manufacturers of other products. But just this one anecdote that I’ve chosen, just because I think it’s so vivid because it was so unimportant to our economy for them to have done this in the first place. So so all of a sudden in retaliation, Italy imposed tariffs on American cars. So all the American car dealerships in Italy closed and that, you know, increased unemployment in Italy. So what did that do Now this would be replicated around the world. So what Due to employment in a bottle of new manufacturers in the United States, the reduced deployment of animal manicures manufacturers here because they were losing their export markets in retaliation for in the case of that chosen just olive oil did something significant. But they had promised us you know that with these with these trade restrictions with this tariff war and so on, that we were going to reduce unemployment and so on, you know, a year after the stock market crashed in 2009. A year later the unemployment rate in the United States wasn’t even double digits. The pilot by the time they got done shutting down prayed with with Smoot Hawley tariff and stuff like
Charles Goyette 39:40
that serious.
Jason Hartman 39:41
Okay, so let me ask you a question here. Charles. Look, you’re a free market guy. You’re a libertarian. You’re a ron paul guy. So am I. And conceptually, I certainly agree with you about the concept of free trade. But here’s the problem. You know, you When you don’t have a level playing field, and you have these companies that go set up shop just south of the border, and they don’t have the same regulations that you do just slightly north of the border, right? Or, you know, the same with China, they don’t have to the the shops over there don’t have the environmental restrictions. They don’t have OSHA, they don’t have minimum wage like we do, you know, or at least not to the extent that we do, and healthcare mandates and all this crap. You can’t have free trade when the playing field is so unlevel. Can you? I don’t think you can, because it’s not a level playing field. If it was somewhere close to level, I would say yeah, just open it up and let it roll, ma’am. Free Trade, but it does seem like there is a case for some sort of tariff for charging companies admission to our huge consumer market. I don’t know it’s a very complicated issue.
Charles Goyette 41:00
This complicated the two things I’ll say just didn’t pass it. One is that all of the currencies of the world are irredeemable. And the benchmarks against which they trade are meaningless they are made up. And so when somebody’s currency is high, somebody’s currency is low. these are these are problems that are eliminated in the use of a real a real global currency that people all over the world for thousands of years relied upon. So all these artificial currencies that have no backing their fiat currencies, they are issued by us to be the printing press of the day. It’s just you know, your world some electrons off in cyberspace and create a bunch more of them. You know, this is a this is a game and it’s a it’s a fraud that’s underway. And so on the one hand, the issue of fair trade and free trade always comes down to you know, who’s manipulating their currency and who is hurt from it, who is benefited from it. All these problems go away in the face of the non manipulate A non fabricated Fiat government, monetary system. But the I think the other part of the argument is that when it when it comes to production, and to out producing your neighbor and outcompete in your neighbor, there’s one element that Trumps if you forgive the word, every other one, and that is capital, capital creates wealth. And so if people in the third world stitch shoes, and they can make, you know, one pair of shoes or two pair of shoes a day, and in the first world, the shoes are made with machines and robotics and, you know, and one operator can make the, you know, 150 pairs of shoes and
Jason Hartman 42:43
it levels the playing field, then
Charles Goyette 42:45
we saw the problem in America that has gone under the radar in my view, I mean, it was inevitable that that, you know, as foreign countries as they threw off the yoke of communism, and they began to wake up and they wanted to have you know, good death. Good homes have refrigerators and stuff and they got rid of the condoms, you know that they would, they would start demanding, you know, an opportunity to produce things and they would have to do a little lower wage rates in America. But the real problem is that they have made their country safe for capital, to find the equipment to do the manufacturing and so on that that has enabled them to compete. And that’s fine because we could be a haven for capital to But America has been at war with its capital now for a couple of generations and it’s getting pretty severe. So so if we fix that if you don’t, you don’t even need to worry about the level playing field because our capital makes us far more productive than manufacturing plants in the you know, in Vietnam them that now we’re stealing jobs from the Chinese because they’re willing to work for less. But our capital can make us so much more productive and always has been able to make this more more productive. But as capital is beta unsafe through taxation, and currency, depreciation and Federal Reserve policies and so on, it starts going elsewhere looking for safe for safer havens and safer opportunities. So in so
Jason Hartman 44:16
So, Charles, what is your prediction about that under a Trump administration, I think that’s going to get better. I think Trump understands that, and he understands. I mean, you know, what I think is going to be the best thing about him. I mean, love him or hate him. But if nothing else, he knows how to get stuff done. He has existed all his life in the real economy, not this bs government economy, this closed crony system that the government has running, you know, he lives in the world or has lived in a world where you have to produce results just like all the rest of us in the normal World of commerce and markets. You know, I think that’s gonna be great
Charles Goyette 45:05
about him. Well, I sure he’ll hold out the hope that you’re right, because we are in a system now so deeply immersed in chronic capitalism, which is basically that, you know, the profits are privatized and the losses are socialized. And, you know, we’re we’re run by cartels, the banking cartel, the agribusiness Consortium, sports oligarchs here in the town where I live, you know, the, the hockey team wants, you know, $200 million from the taxpayers and baseball team wants a new stadium for a couple hundred million dollars. Wait, didn’t they get one for half a billion dollars not too many years ago in the football game, he goes on and on and on and on. It never is never. The problem is when they run into expenses, or they need money, they you pay for it. But when the team is a hit, they sell a lot of shirts and they make a Super Bowl or what they never send you a dividend check. It’s funny how that works. So I know, I know, he understands that and I feel in many ways he’s not as beholden to the cronies and Lord knows they’re breaking the back of the productivity of America. I mean, congressmen go to Washington and they spend their time currying favor with cronies, and then they retire and, you know, enter jobs that are set for life guide, the guy that ran, you know, that the bush prescription drug bill through Congress, you know, let Congress before just before the ink dried on it, it took a $2 million a year being the head of the lobbying Association for your
Jason Hartman 46:35
convenience,
Charles Goyette 46:37
like Hillary Clinton get $375,000 for speech. Are you telling me is it because there were rhetorical skills? I don’t think so. You know, so I mean, it’s just the if the system is rotten, and it stinks, Trump has said that he will drain the swamp. Well, I sure hope he does. And I think again, we come back around to, you know, politics, his personality, and if he’s got an admin of people that really are committed to draining the swamp, and not lobbyists and not looking to take care of their friends. You know, we blew chris Christie out the other day for basically, you know, staffing the transition team with a bunch of lobbyists and people interested in lining their own pockets, or at least, so it it had it had the appearance of that. Certainly it was thick with lobbyists and it had the appearance of being guys that were interested in getting what they could so you know, that was a that was a helpful sign. So I think we’re in a really interesting period now and we can read the future and actually is why I’m looking forward to speaking to your group because you know, when we get together in a week or two, there will be a lot more water under the bridge so to speak and live a much better idea of how this is shaping up that are the personalities are and what the ox is that they each want to Gore. It’s gonna
Jason Hartman 47:55
be fascinating. Yeah, it’s I you know, when the election swaying and you know, Hillary conceded. I posted on my Facebook that this is going to be the most interesting presidency ever. I have four years of podcast content.
Charles Goyette 48:12
Already. It’s in the bag. Yeah. It’s a great time to be doing a podcast for sure. It’s it’s amazing how thick and fast when they’re there we are with a $20 trillion in debt. And over the last year, they’ve been increasing the debt by, I don’t know, about $3.8 billion, I think a day now $3.8 billion a day. It’s just it’s just criminal. It’s time to make some really, really interesting time. Very interesting. Charles,
Jason Hartman 48:40
give out your website, tell people where they can find your books and in more more about you.
Charles Goyette 48:45
Well, there’s not a lot to tell. Charles glia calm. I have two books out right now I’m actually thinking about reissue in the dollar meltdown. I wrote that in 2008. And I said, you know, the prognostication predictions in here are good for the next couple of years and maybe even three years out and bada bing, bada boom, that worked out perfectly, because, you know, I said, but but I’ve written this book to show you kind of the precedents of the economic and monetary theory and so on that drove the predictions that I’m making, so that in the future as conditions change, you know, you’ll be able to implement those same sorts of ideas in a new way, but to understand the basic principles. And so I said, you know, in the intro to the investment section, I said, so these, these recommendation, you can’t write a book in, say, 2016, that makes economic recommendations for the year 2026. You know what I mean, too much stuff happens, but you could write on for what’s going on the next few years. So I did that. But now we’re starting to cycle back into the same kind of period. I’m actually thinking of bringing that back out with some revisions. But anyway, it’s the dollar meltdown that’s still available in New York Times bestseller, and then in the middle For that I was asked to write a book about how we can restore America’s prosperity. So the first book is what do you do to protect yourself when things get crazy like this, and that’s what the dollar meltdown is all about. And then I wrote one for people that are interested restoring the vitality, the robustness of American to restore the American dream. And I actually said in there, Jason, quite frankly, I don’t think that people will do this. I don’t think they’ll make their politicians this. We we have become so spoiled. Everybody wants to live at the expense of everybody else in this country today. I don’t I don’t think that people are interested in restoring America’s prosperity. But I wrote red and blue and broke all over the candles red and blue and broke all over, because it’s the red Party and the blue party working together that have done this to us. But I wrote red and blue and broke all over about the complicity of the two parties in Washington, the Washington bird of prey to beings that you know, fleecing us of the private assembly. American dream and, and so on and how to restore America’s free economies subtitle. So those are, those are both available. And then I have a new book, presumably come out sometime in the new year. I’m just setting off as I said to my agent this last week, and we’ll see who decides to publish it. It can be anybody but it’s called the empire of lies.
Jason Hartman 51:23
Fantastic. And did you give out your website? Charles?
Charles Goyette 51:26
Yeah, Charles glia calm, and I just don’t get a lot of information on there. But for people that need to find the books or you know, to get a hold of me and so on.
Jason Hartman 51:36
That’s fantastic. And just let me spell go yet is GOY e, TT E. Charles go yet. And Charles, thank you so much for joining us again today. It was great to talk to you and we’ll see you in a couple of weeks. We’ll see in a couple of weeks. Jason, all these great speakers.
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