1235: Voting with Your Feet & The Real Wolf of Wall Street, JP Morgan Chase & RBS Lawsuits with Nobu Su

I've been in investment for about two years. I have six investment properties, one in Kansas City, three in Memphis and two in Little Rock. Oh. I started in university because I listened to Jason's podcast.

That's it.

It makes sense to me. So I make a very quick decision. I think maybe in one month I decided to attend the Middle masters event back 2016 and then yeah, I started to buy properties since then. Before that I'm trying to do some study on stocks, but that makes sense to me. So I hold a lot of cash. I didn't deploy to the stock market. So finally I get Jason's podcast. Everything he said makes sense to me and I have a lot of agreement with his opinion. So I decided to come to the event, beat Masters and then I decided to make the investment. I think the first thing is real, you can have a real good return. It's not a scam, but you should be careful. What I recommend is join a network like Jason's network and get some education and then start to buy the properties. Don't wait too long.

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 she'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. And now here's your host, Jason Hartman with the complete solution for real estate investors.

You might recall when we had Meredith Whitney on the show several years ago talking about her book the State of the States and talking about the migration path of people moving out of high tax, highly regulated places, mostly politically liberal places, to places with more business friendly environments, lower tax environments, and in many ways places that reflect one's own political views, largely held by the middle class. That's what we're going to talk about today for a few minutes. We've got Thomas, our in house economist here. Thomas, welcome back.

Yeah, good to be with you.

Thanks. So you pulled up an interesting video about people leaving New York. The Big Apple ain't what it used to be, I guess. And let's just listen into this for a moment. Well, people are leaving New York Faster.

Than any other state, according to the U.S. census Bureau.

News Channel 34's Morgan MacKay explains the.

Numbers and what elected leaders think the reason is.

New York is losing people and it's been following this trend for the last three years. According to the U.S. census Bureau report, New York is one of nine states that lost population last year with the Most people over 48,000 leaving New York. But it's upstate seeing the biggest decline since 2010. 42 of the 50 upstate counties recorded a loss of population. And because of this out migration, New York is likely to lose two congressional seats in four years. A spokesperson for the governor sent me a statement today that seemed to cast doubt on the accuracy of the census, saying a complete and accurate count is critical for New York to receive proper representation in Washington. The state is committed to being a full partner in a robust outreach effort so that every New Yorker is counted. But what are officials actually saying? Well, the governor a few months ago pointed to the weather as a leading cause.

People will make demographic choices about where they want to live. Some of them are climate based. Somebody wants to move to Florida because they want to move to Florida.

I mean, that's not an excuse. That's been going on for decades. Right. That's nothing new. And New York grew during times when it had bad weather and it's got the same weather now. But what's interesting and really scary for a state is losing two congressional seats in. I think they said then maybe the next three years. Thomas, that's a big deal, isn't it?

Yeah. I think it's funny, the first thing they jump to is losing two congressional seats. It's again a. I don't know. Sometimes in these places that lose, that are losing people, they think of the politics side of things. You know, from my perspective, losing people.

Right.

That affects real estate prices. Oh yeah. It's one of the most important factors in determining real estate prices. Obviously weather matters and taxes matter and water, water prices, energy prices.

But overall it's pop population. If you have people there and people coming in where you've got an in migration place, then prices will tend to go up and rents will tend to go up. If it's an out migration place, prices and rents will go down. That's, you know, pretty much the way it works. There are other factors, but that's the. Those are the main ones. Right, Just like you said. Yeah, I agree. And so the question is, is it causation or correlation? Right, that's. That's always something to consider. You know, you've got these caus when they try and tax everybody in every which way they can. You know, eventually people are just going to get fed up and they're going to go and that's what they're doing. So let's keep listening while at the.

Same time we lead the nation and.

Out migration people leaving New York to other states.

I also spoke with soon to be Senate Majority Leader Andrea Stewart Cousins who listed a few reasons as to why not as many people are staying in the states.

Whether it's the economy or, or affordability keeping taxes low and, and, and jobs growing. You know, New York will be as if, if I have anything to do with it, the place that people will be coming to in droves over the next few years.

That's funny. Keeping taxes low for. That's hilarious. I don't think people are coming there in droves. They're, they're looking for escape.

The sp spin people put on things sometimes.

Yes, the spin they put on it for sure. Yeah, absolutely.

The fourth highest behind only California, Texas and Florida. In Albany, Morgan MacKay, News Channel 34.

Interesting stuff, Thomas. Interesting stuff. So for real estate investors, you know, I think the lesson is kind of obvious, right. Invest in business friendly low tax. And you know, I always say it, Thomas, landlord friendly places. New York is definitely not landlord friendly. Even if the numbers worked, even if the rent to value ratios worked, you're still in a landlord unfriendly place, aren't you?

Yeah, you obviously you're the best at it. That's definitely true.

Well, there are people better than me for sure at this real estate investing game. But you know, I do okay, I'm okay at it. And then you know, you add to this the federal tax change and the salt. The maximum deductibility of the salt tax is the state and local taxes. And that's really a recipe to push people out of these, these places and sort of everything that they said about New York, except maybe for weather, applies to places like California also, doesn't it?

Yeah. That 10,000 cap that is certainly causing some individuals to move from higher tax places where they, where they used to be to take. Right. Their state and local taxes off of their federal income tax return and now they can't, they're capped out. Makes a big difference, that's for sure.

Well, we've been chronicling this stuff for years. The trend just continues. So we'll continue to monitor it. And Thomas, thanks for joining us on this and thanks for the video.

Talk to you later.

It's my pleasure to welcome Nobu Su. He is one of Asia's richest businessmen. He is founder of Nobu Store and chairman and CEO of Today Makes Tomorrow. Otherwise known as TMT. Great name. Which during the 90s was one of the world's most successful shipping companies until the Royal bank of Scotland sunk it ahead of the 2008 financial crisis. He's author of the Goldman from the east and the subject of the acclaimed documentary the Outsider. Dubbed as the Real Wolf of Wall street because of his appetite for financial revenge, sue has launched a $12 million lawsuit against JPMorgan Chase in a New York federal court. It's just a fascinating story, Nobu. I can't wait to hear more. Welcome. How are you?

Fine, thank you.

Good, good. It's good to have you. So are you currently in the lawsuit with JPMorgan Chase or is it. At what stage is that?

Yeah, still ongoing. Because JP Morgan Chase could not give us sufficient information that they didn't stole my $5 million. And actually it did because they received money from RBS after we opened. The first money of $5 million deposited to the RBS account, dismissed. It disappeared and sent to the JP Morgan chess na, which means American head offices.

Okay. So the issue is an issue of disclosure that when you deposited $5 million, you didn't know where it was going. You thought it would be in the hands of rbs. Apparently you chose them to be your bank and you liked them. However, JP Morgan ended up with your money. Is that the claim?

Yes. So we asked them that J.P. morgan to the priest return money or explain to us where the money went. And so far they couldn't explain properly until today.

Okay.

And we are waiting for the court decision. And it's. It's so long. They haven't made any decision yet.

Oh yeah, of course. The legal system, the wheels of justice move very, very slowly, as we all know. Sadly, that's the way it is. Did you actually lose any money or is your claim simply a claim that there's not a proper disclosure going on?

So we started to look at all the data and did actually a big data analysis and we found out that there's another second payment of 250,000. Also looks like disappeared to bank of New York. And then third payment. Interesting. Happened when the northern lock went burst. The RBS sent us the different SWIFT code to our account. Said that the police remit money to their special account, which is the bank's own bank's account. So we end up remitting over $490 million to the RVs. On account. And it does mean that the RBS and JVMO used my money for their advantages.

But aren't all banks using your money to their advantage? Or are you saying it wouldn't be on demand like a demand deposit? You couldn't get it back immediately if you needed it because they were doing something else with it or what? I'm just trying to understand what is the real damage here.

Okay, so there was actually one day damage because they borrow my money. I put the money to the New York and what we believe is called the PDCF scam. This is the special word Hank Paulson decided to install for the giving the money to the banks. It's called pdcf. So if you bring the money to central bank, you can receive the 25 times money from the central bank. That is how the banking system works. It's called money creation.

So this is an issue of fractional reserve banking and the Federal Reserve scam more than it's an issue of just these banks is just sort of a proxy for what all banks are doing, right?

Yeah. Basically when the 1913 when the, you know, Rothschild and all these people get together created federal banking system, they said give money $1 to the bank. The bank will lend you 25 times so that you have 25 times so you can give the money cheaply lent to the people so that people can enjoy. That's basically commercial banking system right now happened in 2008 was Hank Person and the team decided to give the money to the banks so that if you any monetary instrument, we give the money so that they could receive the money so that the whole economy will not went bust. So for that you need their own money. But bank didn't have any money. So they used my account and received my $490 million cash as their own equity and they could create basically $12 billion.

Right, right, right. This is how folks, and we've talked about it many times on the show, how in this odd, extremely complex game that almost nobody can figure out, not even experts, how money is lent into existence. And it is absolutely shocking what goes on. It's such a deep subject, it's crazy. But say anything you want about it, Nobu.

Oh yeah. Because at that time there's no money in the bank. So banks need to create the money and the accounting and you know, KPMG, Deloitte, PwC, Ernest Young, all these big force, they have to tell them that they are doing right so that each quarter they have to move the money around and using the people's money, such as our accounts and our cash to create the billions. And then after that they're smart enough the people in Chicago, one hour later or in Singapore, they bring money back in my account and they do the same thing again so that every day they survive with all these things. And we found out all this scam.

After the 10 years, it's truly mind boggling. You know, there's an old joke and it would be funny if it wasn't so sad. If you have a gun, you can rob a bank. If you have a bank, you can rob the world.

No. So that's why I wrote now the second book and the third book is on the way. Basically the quantitative easing over the six years give the unlimited money was the Neighbor disclosed in 2008. And if you look at the $90 trillion printed out, it's proved that 770 billion of the top or the 7 billion given by Timothy Geisinger was nothing. So now today we have so much debt in all of the people in the world, I don't know how we're going to pay it back.

What does this mean for the future? Is another crash around the corner? Is a debt jubilee around the corner? Or will things can they just keep playing this game for the next 30, 40, 50, 100 years?

Yes. So Deloitte had audited the Federal Reserve's system, but it's very vague. So what we are seeing now is now with a new Mr. Powell just to raise the interest rate. Now everybody said no, no, no, now they stop. And so because now all is clean up. So as long as the interest rate is moving up and down, we have the issue of the issue. So in my opinion, what the central bankers and all these famous bankers has no accountability and they printed 90 or 50 or 70 trillion dollars. They should come back and say I'm sorry I printed so much money. And secondly, if that money of part of it was used to spend for physical policy such as building the houses for people or like a yellow vest, people have apartment or they're giving them some favor. I think that's what's much better. So we are now seeing the huge social crisis and unfairness in the world. And with this, the current France UK and all this America, I think this is happening.

So when you talk about the yellow jackets, you're talking about what's going on in France, right?

Yeah, I was there. I participated in this yellow jacket as a foreigner. I didn't see any foreigners.

Right.

And I didn't have the yellow jacket. So I wear the Gold jacket, but similar. And all of them loves me so much. I thought they're going to attack me because I look like rich. But no, no, no. Ask me why you came here. And I was interviewed by TF1. He asked me and I asked him why you're here. He said, no, no, no, I'm generous, I cannot say anything. But I look at his eyes. He was very passionate to the people of yellow jackets.

So do you have any recommendations for investors who are listening? What should they be doing with their money? You know, I asked you a moment ago, can this just go on for 10, 20, 30, 40, 50, 100 years? You know, it's kind of this game of sort of kicking the can down the road. Eventually everything falls to a real economy. It has to. It can't go on with this fake smoke and mirrors economy forever. But it probably can go on for a lot longer. Maybe not. I don't know.

This is now with my books and what I'm telling the people. It's. I'm an economist actually. I study economy and I look at all the world travel, all the places. For me it's become very, very simple. A lot of people are not happy and they have to go to vote because the voting is your only right and the referendum is the key to change this system. So for example, in Taiwan we have the referendum and they can change the policies in America, in London, in France, it's very, very difficult. Only referendum we've seen is Brexit 49 versus 51. And the country is now in the talk, talk, talk, talk, talk forever. And this energy and money spent looks to me very, very funny from outsiders. So what we need to do is vote to the right the politicians and ask them to speak up.

Okay, so then you believe that the politicians on the right have a better solution. Is that what you said? Or we have the right to vote? What were you saying? I didn't understand that.

Yeah, what I'm saying is like the musical cinema. Basically police are too busy to talk every day about their case. They have no time traveling and see the world and they don't get the real information. And the media is basically giving the awesome pictures and there's no second opinions. So they also, they don't know where the problem is. If you don't have the problem, just talking nice words and talk about the policy and constitute this, nothing will change. So basically what we need today is find the right politicians or right people to talk about this now. If you talk about the future, where to put the money, I'M not going to scare the people. But basically you have to believe in what you put your money. The risk is getting higher and higher. That's I believe what is happening.

Talk to us a little bit about your career, if you would and your incredible success. I mean this meteoric rise in the business world that you've had over the years. What is Nobu store? Is that like a snap chat for digital documents? Is it kind of that idea?

Yeah, I came this idea in 2000. I had the US patents and many patents about this. Basically I went to Amazon, came with Amazon bookstores. I said no, no, I want to have the book immediately. So I had a patent. Basically you can download digital documents and read immediately and it's going to disappear and before it disappear you get the real book. So it's called a seamless delivery and this kind of Snapchat ideas. So I decided to put it in the one example to show in the store because Amazon actually this is my first time becoming author. Today. The many authors has to pay the 50 to 70% of the income to Amazon. So they make very little money for the authors.

Amazon is just taking over the world and they're crushing everybody. They're crushing their own sellers. They're crushing obviously they're destroying the retail business around the world. It's just too concentrated the power, isn't it?

Yeah, it's called Amazon, it's not Amazon.

Yeah, yeah, absolutely. So why does the digital document blow up, if you will, after it's downloaded? What's the point of that?

My idea was that in the early stage you have a digital and it stays there forever. So that actually cost to maintain the data is become very, very expensive so that if it can be vanished and so we have real information, how do we decide how to control the data? So that was my ideas, but actually in terms of the books and the media and journalism, I think if it's going to vanish in certain times people can talk more real stories and they are confident that they can send to somebody. And after see it, it's like comics, right?

Right. This would be very good as a way to communicate and in an era of government oppression especially, or you know, to circumvent the government, I mean, so that people can have the right to communicate what they want and not without fear of reprisal. I could definitely see an application there, right?

Oh yeah, there are many applications and I believe that we are now the able to control the data in our hands, not by the data to be controlled by the Google or the Amazons and it's very scary actually. Even in China or even in now in the other countries all over the world. They stolen the data and sell the data. I think it's very, very bad.

Yeah, I think I've said many times that I think Google and Facebook are the two scariest companies on earth. I mean we all love and use their products probably. I know I do. But they scare the heck out of me. Any company that controls 60 to 70% of the search results on planet Earth, that's just insane. They either need to make their algorithms public and open source so people can see why they're seeing the results they see or they need to be regulated like utilities or they need to be busted up under antitrust laws or maybe all three of those things.

Yeah, but that's happened since 1999 of dot com boom. But now that also I look at the other side token I'm fighting with all big institutions and the banks and the politicians, whoever it is, since they have put this the fake news or a lot of the one side opinions, it's now easy for us also to search and build up our theories and our story because there are public facts they wrote in. Whether it's right or wrong, it cannot be disappeared. So we have to be smart enough to understand how to understand the real information and the fake news, right?

Yeah, absolutely. Any tips on that, how we can understand that? It's not that easy.

Oh, that's experience, just life experience.

Good. Take us back and tell us about your career. How did you start out? How did you get into shipping and what happened with RBS sinking your company in the financial crisis there?

Oh, this is a long story. Please read my books.

Okay.

I'm writing the one book. Second book. Second book is called Dynasty Escape. It's talk about the Taiwan, the political parties that move the money from taiw outside. And the third book is called the government from the east and west and it's actually talk about what behind the finance crisis and more to come.

And you cannot get these on Amazon, right? They're not available on Amazon.

No, I don't want to go to Amazon because it's easy to Amazon but I want people go to Novodox store and we are still making the more for the people available easy to use. But it's very, very interesting to pay a little bit money and read it because since it's going to banish it, people have to read it as soon.

As soon as possible.

This is a very good education system.

Actually that's another good point. About all these tech companies. You know, the censorship is just huge. I know that Prager University is suing YouTube and Google at you know, the parent company. But everybody, you need to go to Nobu store, right? N o b u.store not.com store. Right.

Nobody. That's it.

Nobu. So www.n o b u.s t o r E. Okay.

Correct.

That's where they're available. Good. I want to make sure people know that. Okay. Your career just in a nutshell. Of course the books are available.

I'm very creative, so sometimes people don't understand. Understand me. So now I'm working for the new technologies is increasing. Increasing the organic fish and collecting the plastic on the oceans. And I think my invention will solve these problems with a very limited cost because this is a two big issues in the earth that we need good fish to eat and plastic to be collected so that the fish will not eat plastic and we are safe.

Okay, but that's what you're working on now. How do you start a shipping company?

Oh, it's such a. My father. It's a small family business and yeah, I grew up with my father. So I know that I think I was prey and I know the ships very well. But most people don't know how much I know.

Sure, sure. Okay, that's good. So it was the shipping business, then Nobu store and now the new projects you mentioned. Right. Are those. I mean I'm sure you're doing other things, but are those basics?

It's correct. I think we are lucky to build up the good business. But then we became the target because his family business was actually the targeted like Mr. Madoff like other people. And if you look at the billionaires target it's 50 by the several banks in the finance crisis and now it's some of them coming out one by one. They never targeted the professional, the hedge funds or they are the people because they find out. So I was outsider. That's why I look at my outsider. You can find interesting things.

Yeah, yeah. And the documentary the Outsider as well. Yeah, good stuff, Nobu. Do you want to give out any other websites or is it just Nobu Store?

Yeah, that's my website called Nobu in Twitter and sometimes I put my opinions. But.

My book is very, very become 1500 pages in total. So most now the economic professors like to read it because all this crisis, I don't want to say crisis of last 10 years, you know so much money was printed but the economy never get better. This is. There must be the reasons because you printed so much money, why we cannot benefit it. And the people just complained. But actually, there was a reason. So please read my books.

Good stuff. Well, Nobu Su. That's Nobu and Su. And that's where you can find that personal website as well, with opinions and so forth. Thank you so much for joining us today, and good luck in the lawsuit. Please circle back with us and let us know how that turns out. Okay?

Thank you very much.

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