1611: The Great Reset & Repo Market with George Gammon, Part I

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Welcome to episode 1611. 1611. Your host, Jason Hartman is currently flying at about 36,000ft. If you're a new listener looking to get started in real estate investing, the world's most historically proven asset class, feel free to browse through the 1600 episodes we have previously published at jasonhartman.com or if you're looking for a quick ground up step in the right direction, you can get some good bits and bytes from the Quick Start series. The link is posted in the show notes. Also, check out our YouTube channel. Just search Jason Hartman in the YouTube search bar for videos and be sure to subscribe and hit the notification bell so can you. You don't miss any of the live stream content. But without any further delay, I bring you part one of an interview with George Cameron. Strap on your tin foil hats.

Hey, it's my pleasure to have my friend George Gammon back on the show and today I asked him to talk about three things. The repo market, which you haven't heard too much about lately. But last year about this time, little bit before this time last year that was a big deal that George was leading the pack on sharing that information with the public. And then isn't it interesting, we rolled right into a pandemic and then now we're rolling into this talk about something called the Great Reset. And I don't know if that's too great for any of us, but for the elite class it might, might be really great. So let's hope they don't achieve it. George, welcome back. How you doing?

I'm doing well buddy. Thanks for having me. Can't wait to dive in. Always excited to talk to you.

Always good to have you. So you know we share a follower in common that is commenting on my YouTube videos and your YouTube videos and his handle if you will. Is my tinfoil hat. I love that you know who I'm talking about. And it's just an awesome handle. So let's put on our tinfoil hats for a moment. And you know, I, I find it to be really rather dismissive and unfair when you hear these people kind of trying to marginalize people by saying, oh, that's a conspiracy theory. You know, there's tons of conspiracies happening every day. It's, you know, so what? That's no normal. Conspiracies are going on all the time. It's no big deal. It's just, it's just two or more people planning something that is in secret. That's all a conspiracy is.

Funny people told me that I was a conspiracy theorist back in January when I was talking about the Syriza sickness.

Yeah, right, right. And here we are and now we've got all these crazy lockdowns and all this kind of stuff, which by the way, George, I don't know if you saw it, but speaking of those in Belgium, I mean, it is absolutely beyond the insanity. I mean the rules they are implementing there are so restrictive. And you know, we ought to, we ought to actually talk about one more thing today if we can fit this all into one interview, because I could talk to you for a month, but that's the coming digital currency. That's a digital dollar, fed coin, whatever you want to call it.

I think it actually plays into the great reset.

I think so too. So I'll let you take it away. But why don't you just give our listeners, for those who may not know, tell them what the repo market is. What does that even, you know, it's kind of this behind scenes thing that happens and you know, a lot of people don't know what it is. And you were teaching a lot of people about it last year.

Yeah, it's just kind of the plumbing of the financial system.

And so a lot of countries have repo markets. The United States is kind of the focal repo market because that's the world reserve currency. So if you're a bank and let's say I'm a hedge fund and I need cash for xyz, what I'll do is I'll say, okay, Jason, I've got these Treasuries that I'll put up as collateral or maybe mortgage backed securities and I will pay you back in three.

Days or 30 days.

They can have term repos, most of them are over 90, but they can have a specific term. And then I give you the collateral, you give me the cash, and at the end of the term, we just trade back and you get a little bit of a spread, and that's it. And that's a repo transaction.

What was happening last year that caused concern, that signaled concern in the economy.

So we all know the federal funds rate. That's the rate of interest we always hear the Fed talking about. The Fed controls the overnight rate. So when Jerome Powell drops rates, as they say, from let's say, 1% to 0%, that's the Fed funds rate. Okay, That's a very, very crucial, to say the least. That is a wild understatement.

Interest rate.

So what happened back in September of 2019 is the repo rates were about, boy, right top of my head, probably 2.5% right around there. And they spiked overnight to almost 10%. And that just doesn't happen. And why that's bad is because if the repo rate spikes to 10%, that means it pulls up all interest rates with it, including the fed funds rate. And we all think the Fed has total control over that rate. But they didn't. Back in September, their overnight rate, their Target was between 2% and the high, the ceiling was 2.25%.

My memory serves me correctly.

And because of that repo spike, rates went up to 2.3, maybe even 2.4%. And so for most people, I say, well, it doesn't sound like a big deal, okay, but that means that all interest rates in the economy would have adjusted up by, let's say, let's just say 10% to make the math easy. So that 3% mortgage that you're getting would now be 13%. That 22% interest rate you have on your credit card would now be 32%.

Wow.

Go take student loans. Exact same car loans. You know, your car loan would go from maybe 1% up to 11%. And now I'm talking about new loans, of course. Or if you're rolling loans over your existing. If you've got a fixed rate, wouldn't be applicable. But so you see how that would completely crush the US Economy, which is really built on asset prices, debt, and confidence. It pretty much destroys all three of those. That's a big problem. Fed has to come in, and basically, I won't go into it, but they print bank reserves. They had to fix the problem by creating all of this new additional base money at the Fed, which can have unintended consequences. Of course, nothing happens in a vacuum. So that really was like giving a patient a thermometer and they have 105 temperature. And you're like, okay, something's wrong here. And something is majorly, majorly wrong. We might not know exactly what it is, but we can tell definitively that this patient is incredibly sick. So we knew that prior to the. I don't know how fragile your channel is with YouTube, but we'll call it the virus, for lack of a better word.

Right? Yeah. This is because the algorithms that scan every word said decide to demote or promote or demonetize your video.

Yeah. Or they did.

They were. I don't know if they're still doing it. That's why I always call it the surveys of sickness.

So moving forward, you guys know.

And I had a few people ask me, what is he talking about when he says the cerveza sickness? I couldn't figure it out.

Corona is surveys. I think you guys get it.

We get it. We get it now.

Anyway, that was prior.

So to your point, what happened might have been a catalyst to bring the system back to where it was in September. But it wasn't. But it wasn't 100% of the reason the system collapsed. So then the Fed had to come in and take extraordinary measures. Unprecedented. Quite. That word gets thrown around a lot. But that was definitely true. Accurate back then. But what's very interesting, and most people don't realize this is back in March when the stock market was just completely, completely collapsed, the Fed came in with an emergency meeting. They're supposed to meet on a Wednesday. They met on a Sunday where they dropped the rates from 1% all the way down to zero. They committed to doing QE Infinity.

Yep. To infinity and beyond.

Yeah, literally.

I'm not exaggerating.

I know.

And they committed to doing a trillion.

$1 trillion a day with a T.

So a trillion a day. A trillion a day keeps the economic consequences away.

Yeah, you got to use that more often. That's a good one.

You can use it, too, George. Go for it.

A trillion a day in the repo market. Now, this doesn't mean that they did a trillion dollars a day worth of repo transactions, but they committed to doing that. But what happened the next day when the market opened up? We're still down by over 1000 points. So the market just said, f you, we're not playing your game anymore. There is no longer a Fed put. The Fed cannot backstop the market. This is kind of the signal we got from the stock market. But what happened that Wednesday is the government came out announcing their stimulus package. Then what happened the market started to go back up and then continued up and up and up to where we are today. So it's like we've gone from the Fed backstopping the market to the government backstopping the market, which is far more inflationary, which is why everyone should be in a 30 year fixed rate mortgage that you always talk about.

But that's kind of what happened during that episode.

So now we have the Klaus and Bigglesworth and everyone at the World Economic Forum coming in saying, these are the.

Elites that fly their private jets to Davos, Switzerland and talk about how to fix the environment and how everybody else needs to reduce their carbon footprint except them. They're excluded from the big plan, but go ahead.

Yeah, they get off their G5 and.

Hop into their Tesla. I think they're saving the planet.

Total hypocrites. In fact, one year, George, I think there were over 1,000 private jets that flew to Davos for World Economic Forum.

I don't doubt that.

And the carbon footprint on that is insane. I mean, it's absolutely insane. But yeah, go ahead with what?

Yeah, the World Economic Forum, it's the imf, the World Bank. All these people. Now, to be clear though, they've been talking about this great reset for years. So this isn't something that they just thought of. Which makes it even more interesting. If you want to put on your tinfoil hat. They were talking about this way back in 2016, maybe even earlier. So I think that if you want to put on the conspiracy hat, you say, oh, maybe there was a little something more to this racist sickness. But if you want to take it off, then you can say, well, at the very least, it presented a fantastic opportunity. And they say that, they say the virus is a great opportunity for us to have a global reset of the entire system.

So it's back to Rahm Emanuel popularized it, but it was actually Winston Churchill, who I'm a fan of, who said, never let a good crisis go to waste. And then Rahm Emanuel brought it back and everybody was outraged. Rightfully so, I think, when he was chief of staff for Obama. But these guys are. The interesting thing is they're openly saying it. Like, you know, I guess it's not a conspiracy when it's out in the open, right? So, you know.

Yeah, I mean, it's on their website, they've got videos on it. I mean, you can check it out on YouTube if you just Google or YouTube, the great reset, or their website, World Economic Forum, that the head guy is Klaus Schwab. And he's got several blog posts on it's, done a lot of interviews, actually wrote a book on it as well. So what is the Great Reset? This is basically central planning. And they won't really admit it, but they kind of. In a roundabout way. And what will happen is if you read just one article, it may seem. It'll seem creepy, definitely, but it may seem rather benign. But once you start to read a lot of them and start putting the pieces of the puzzle together, it becomes crystal clear that they want central planning and they want more central planning and they want us all to live in. And by the way, they call it AN Agenda.

Agenda 21.

No, no, they call it the Great Reset Agenda. That's not my words. Those are their words. So anyway, they want us all to be urbanized, living in cities. They really don't like cars.

They don't like vehicles.

You know, they like maybe the electric ones, but they'd much prefer us to.

Be riding around on bicycles. Sure.

They don't want us eating meat. They want everything to be digitized. They want there to be a fusion between robotics, artificial intelligence and human beings. And that goes down a very weird path. They want everything pretty much analyzed. They want big data. So they want everything feeding in to the central computers.

That's right. That's right.

So imagine if you were. If you had a chip on your phone or a chip in your skin that would. And of course, this is for your safety, Jason. This is for your.

It's always for our safety and our convenience safety.

So you don't have to spend money. You can just swipe your wrist at Starbucks or when you go into XYZ store, you know, if you've been vaccinated, it will just. It will get a green light. So you don't have to worry about that. You go into a venue, you know, you go down to laundry list, but it also sends.

And then you'll have a social score like China. Eventually that'll come.

They'll have actually, believe it or not, I haven't heard that them talk about a social score.

I know that's coming. They can't do it all at once, George. They got indirectly.

Indirectly, though indirectly they have, because you read about the Great Reset. They always talk about more inclusion. You're like, okay, well, that sounds good, but what do they mean by inclusion? And that is just straight down the social justice warrior type of. We did. That's one thing that's also consistent is they don't want equality of opportunity. They want equality of outcome. And they explicitly say that. So they want to re engineer how society is structured and they really want anyway, so I don't want to get too into the weeds there, but that's what their vision is. And they're very, very into climate change and they're into green energy, they're into big data and they're into artificial intelligence. So going back to what we were saying about the chip, all of the transactions that you do on a daily basis go to this central cloud. All of your vital signs go into the cloud via this chip to the point where they're even talking about your thoughts going into the cloud, including your dreams.

So.

And again, it sounds like bizarre stuff. Don't take my word on it. Go to their website, watch one of my videos, I show the blog post right on their website. So why would, what's the argument for this? What would be the benefit in their eyes or in their words?

Right?

Well, the benefit would be that you'd have access to all of this information. There was this information would go into the cloud in real time and could give you all of this data that would improve your life. So as an example, let's say you're just thinking that you want spaghetti for dinner.

Okay?

Well, that goes into the cloud. And when you go back home, then you on your front door is everything.

That you need to make spaghetti, or.

Maybe it's spaghetti delivered by your favorite restaurant. And you don't even have to get out your phone. All you have to do is think the thoughts and it just appears and it gets delivered by a drone. And in their utopian vision, of course, because they're central planners, you don't own anything. You don't own your. Literally nobody owns anything. You don't own your car, you don't own your house. So the question becomes, who does own it? Of course, that's them. They own everything. And you just rent everything you need, including your clothing. And then you don't go to the store because you don't need to, because the artificial intelligence is crunching all of your thoughts. Therefore it knows what jacket you want before you even want it. And then that jacket just magically shows up at your front door delivered by drone, and they charge the chip that's implanted in your wrist for the drone delivery. And basically, if you read their posts, they kind of want us to live like a. Very similar to like a third grader where we're riding our bicycle around everywhere. We come home, our parents, which is the government prepares everything for us, provides everything for us, and all we do is run around all day, kind of playing on our bicycle and finger painting. And if it sounds like I'm being sarcastic, believe it or I'm not. And I've pulled up blog posts where they talk about this lifestyle where we would be free all day to just dream and imagine and to draw pictures.

And to cook our favorite foods.

And it's just this again, it takes creepy to a whole, whole new level. And then there's several other components of it. The main being this fourth Industrial Revolution, which is all about the technology and artificial intelligence component coming into the mix, so to speak. And they have this timeline where they achieve these objectives by the year 2030. So then the question becomes, okay, well, why? Well, there's several hypotheses that you could go through. One I think is the Cantillon Effect. Makes a lot of sense because Richard.

Cantillian, we've been talking a lot about him lately. Yeah.

So if you look at how that.

Works, and just to make things very simple, it says when the Fed prints money or the government spends money, the people closest to the money.

So the insiders, the political insiders, the financial.

The Wall Streeters and the banksters, too.

Yeah, that's right.

They're the ones that get the money first before it can create price inflation in the real economy. So if you really want to put on your Dr. Evil hat and say, how would I accumulate maximum amount of, I guess we'll call it wealth and power. Well, if I'm someone that's right next to someone at Davos, that's at the World Economic Forum, that's right next to one of the spigots, the money spigots. I know that the more I destroy the current economic system, the more money they're going to have to spend. And that means more money is going to go through my back pocket. And so that's one kind of idea. But then you combine that with the fact that they just think central planning is superior. I think the average viewer would say, oh, that's ridiculous. Just look at China. Just look at Communist Russia. We can see that that doesn't work. Or look at Cuba. Well, you have to really dive into the mind of a Marxist to understand how they view Communist China. Marx believed that capitalism was a vital component of the growth of a society. He did not believe that capitalism actually competed with communism. He felt as though communism was the next stage of capitalism. It was kind of like a baton that you would hand off so you could not go from feudalism to communism. That would be an utter Disaster because the capitalists have not been able to do what even Marx acknowledges they do really well, which is build, grow an economy, create technology, and advance society forward through industry. The whole point is, when the Chinese went and studied what happened to Communist Russia, their conclusion was not that Communism failed. Their conclusion is that Russia just tried it too early in the cycle.

That's always the powers that be, the elitist tyrants. They always want to do a new, sort of a new version. They just say, well, communism, Marxism, socialism. These other folks tried it back in history or in other geographies around the world, and they just didn't do it right. We'll do it the right way and it'll be utopia, right?

Yeah.

So I think that's where they could.

Be going with this.

So if we think this through, we.

Talked about central bank digital currencies. So if we understand kind of everything.

That'S brought us up to where we.

Are right now in the conversation, and then we think about these global elites.

That they are, at heart, they're central planners.

They think that all of us are just stupid, idiotic rudes that left to our own devices, would completely destroy the economy and the planet.

And therefore, one thing on that we need to.

I'm not sure they think that or not, but it doesn't matter if they think that. The point is, central planning is great for central planners, and communism implies big government. And big government is great for the inner circle, the people that run it. It's a fantastic system for them because they're closest to the money, they have the power, and they can just control and allocate all the resources however they see fit.

Yeah, I'm probably actually giving them too much credit for assuming that their intentions could be altruistic. Their intention could be good, probably.

I'm not saying they're altruistic.

Yeah, probably a stretch. But we know that they're central plan, that is for sure. So if you think, you know, if you and I were central planners. Well, let's say. But we did have good intentions. Let's just say that we did have good intentions.

We really wanted the world to advance.

In society, to move forward. If you asked me how I would.

Get the job done, here's how I do it. I would recognize that the problem with Russia, one of the main problems was that they didn't have any price signals. Okay, so why is that important? Price signals help you allocate resources efficiently. So if there's a high price in something, you know that more resources have to be allocated to that if there's low prices in something, you know that fewer prices have to be allocated. This is one of the main reasons.

Fewer resources. Resources, you meant to say?

Yeah. So if the price goes down, then fewer resources needed to be. Need to be allocated to whatever that is or whatever area of the economy that is. You know, of course, capitalism does this. Free market capitalism, I should say, does this fantastically well. And this is one of the main reasons that Russia collapsed, because they didn't have any prices, so they didn't really know how to allocate resources.

Do you know what's interesting, George, about that? And there are some fantastic old videos on YouTube about this, where. I saw one where they did an interview inside the. I don't know what it's called, but the pricing office, right. In Moscow. Okay. And they pulled out these big books, right? This was in the early era of computers, so it was mostly on paper, these big books that told them the price of things and what the former Soviet Union had to do because they had no price discovery mechanism under their stupid system, their failed system. They had to look to the west to figure out what something should cost. They had no way to figure it out except to look at mostly our.

Economy, to look at the capitalists.

Yeah.

Right. They tried to borrow our price discovery. Right.

This will be continued on the next episode. Thank you for listening and happy investing. Thank you so much for listening. Please be sure to subscribe so that you don't miss any episodes. Be sure to check out the show's specific website and our general website, hartmanmedia.com for appropriate disclaimers and terms of service. Remember that guest opinions are their own, and if you require specific legal or tax advice or advice in any other specialized area, please consult an appointment. Appropriate professional. And we also very much appreciate you reviewing the show. Please go to itunes or Stitcher radio or whatever platform you're using and write a review for the show. We would very much appreciate that. And be sure to make it official and subscribe so you do not miss any episodes. We look forward to seeing you on the next episode.