1755 FBF: Adam Taggart – PROSPER! How To Prepare For The Future & Create A World Worth Inheriting

Welcome to this week's edition of Flashback Friday. Your opportunity to get some good review by listening to episodes from the past that Jason has hand picked to help.

You today in the present and propel.

You into the future. Enjoy. This show is produced by the Hartman Media Company. For more information and links to all our great podcasts, visit hartmanmedia.com.

Welcome to the Creating wealth show with Jason Hartman. You're about to learn a new slant on investing, some exciting techniques and fresh new approaches to the world's most historically proven asset class that will enable you to create more wealth and freedom than you ever thought possible. Jason is a genuine, self made multimillionaire who's actually been there and done it. He's a successful investor, lender, developer and entrepreneur who's owned properties in 11 states, had hundreds of tenants, and been involved in thousands of real estate transactions. This program will help you follow in Jason's footsteps on the road to your Financial Independence Day. You really can do it. And now, here's your host, Jason Hartman with the complete solution for real estate investors.

Welcome to the Creating Wealth Show. This is episode six nineteen six hundred nineteen. Thank you so much for joining me today. This is your host, Jason Hartman, coming to you from Las Vegas. Yes, Sin City. I finished Meet the Masters this weekend. We had an awesome event. Thank you so much to all of you who attended. It was our largest Meet the Masters event yet. And thank you so much for all of the kind words and the excellent feedback. And you can probably tell my voice is hoarse because I've been talking all weekend. So I'm looking forward to sitting in this conference today and just listening, not talking so much. But it was a great event and I just thank everybody so much. We just absolutely love you clients and listeners and so much appreciate you. I just can't tell you how much I appreciate you. But yeah, fantastic event. Some great contributions, fantastic speakers. You know, everybody says every year this was your best Meet the Masters yet. I guess I take that as a bit of a challenge, but it's going to be tough to keep up with because you got to keep making them better. So next January we will have our next Meet the Masters and we'll try to top this one. But hey, our guest today is super interesting. Adam is the partner of Chris Martinson and they've got a new book out called Prosper and it's kind of a, I don't know, maybe it's a bit of a non sequitur because Chris Martinson, who you may know from the Crash Course, which got him some fame. He's a bit of a Malthusian and points out some real, real significant problems in the world, mostly from the perspective, but also from some other perspectives as well. And I just interviewed Chris again, I think for the maybe the fourth time on the show. And today we've got his business partner and he's a fascinating guy. I think you'll really like what he has to say. And the interview is rather lengthy, so I am going to make my intro extremely short. The one thing I will say, well, two things I will say before the interview. Number one, if you missed Meet the Masters or, or you want a review of last year's Meet the masters, go to hartmaneducation.com that's hartmaneducation.com you can see the entire event from last year, the last one beautifully segmented into nice modulized videos. And again, I love the audio format. Video, you need it sometimes because you need to see something and refer to a visual aid. We also have the audio download on that site as well. So you can just buy the course and I think you'll really like it. We spent a lot of money with a designer making this course that's@hartmaneducation.com where you can get the audio and the video included. So you have the portable format and you have the visual format so that you can listen to the portable format while you're out and about and then reference the video as you need to. I think that's kind of the best way to do it. Use it as you wish. And again, check that out at hartnet.

And if you want to join us for the Dubai trip next month, just a little slightly over a month away, go to venturealliancemastermind.com that's venturealliancemastermind.com and one of the things we definitely settled on this weekend, once again, is that income property is the most historically proven asset class in all of world history. I started off the weekend with a speech on the dogs that don't bark and how you you can't hear them and how there is an incredibly profound impact of things unseen, of things unheard. Consider that in life we try to explore that when it comes to investing and just life in general on the show here. So more to come on that. But without further ado, let's get to our guest and jump in and talk about prosperity. So you've heard past episodes I've done with Chris Martinson, who I think has some brilliant and really fascinating ideas. Today I'm going to have his co author and co founder Adam Taggart on the show. They are Co founders of PeakProsperity.com Developers of the educational video seminar series the Crash Course, and co authors of a new book entitled how to Prepare for the Future and Create a World Worth Inheriting. Adam, welcome. How are you?

I'm great. Jason, thanks so much for having me on your show.

Good to have you on. And you're coming to us from the San Francisco area, I believe.

Yes, I live up in Sonoma County. It's about an hour north of San Francisco, but has a lot better wine and better food.

Yep, the wine country, it's beautiful up there, really is. Well, so tell us about the book Prosper if you would. I really cannot wait to dive into the different forms of capital and the way you distinguish those, how it's about so much more than just just money or currency, I guess we should say to be more accurate. But yet give us an overview of the book Prosper.

Sure. So you mentioned my business partner Chris earlier, who wrote the Crash Course. And for those of your listeners who are familiar with the Crash Course and the framework that it presents, that work is really a problem definition work. It talks about the major macro trends going on in the world around us. And we particularly look at the economy, our energy systems and key natural resources in the environment, specifically depletion of key natural resources. And we talk about the implications of these trends and how they're going to affect our future. And the story can get a little bit dark for people in terms of there are going to be some real problems or sometimes we call them predicaments because some of them don't necessarily have solutions, they just need to be managed. And so anyways, as people come to grips with that information, the number one question they ask us is, oh my gosh, well, if that's what's going to be shaping the future, then what should I do? Well, that's where the new book Prosper comes in. Prosper really is a solutions oriented work and we talk about what people can do both at the societal level and as communities. But really specifically we're talking to the individual here, what individuals can do to take steps in their lives that will insulate them against these forces that we see shaping the future. And we'll talk about this a bit more in detail. But what's great about but the advice in the book as we see it is that even if we're totally wrong about these forces in terms of the timing in which they're going to impact the future, even if the rest of our lives look and feel very much like how they have to date. These are life enhancing steps that we're mentioning. These are investments that you will never regret making, no matter how the future turns out. Welcome to this week's edition of Flashback Friday. Your opportunity to get some good review by listening to episodes from the past that Jason has hand picked to help.

You today in the present and propel.

You into the future. Enjoy.

Okay, so good stuff. Tell us about the different forces that you address, you know, in the and the associated predicaments, if you will. And you know, this really may be a little bit of a review of the crash course which was the impetus for all of this work, but give us a sample, an overview of the predicaments and the forces.

Sure. So at this point, I'll try to quickly summarize each area I mentioned earlier. So from the economy standpoint, the world has been operating on a debt based fiat money system pretty much for about exactly as long as I've been alive. President Nixon took essentially the world off the gold standard in 1971, in August of 1971, which was about two weeks after I was born. And since the world was basically on a dollar standard when the dollar went off gold, essentially the world went off the gold standard.

Been running a monetary experiment ever since. And as we go into great depths in the crash course, we talk about how under a debt based monetary system, the total credit outstanding has to grow. For the economy to function well, it must keep growing. And anything that grows at any rate for any given period of time grows exponentially. And we are far enough along in this monetary experiment where we are getting to the point where it is getting harder and harder to grow that global pool of credit. And we're beginning to see basically the instability of the system increase, is that credit has trouble growing. And that really is sort of at the root of what created the 2008 credit crisis. There's been a lot of efforts since then to try to get us back on track, but they've come at great cost. And we can talk about this if you like, but very debatable whether they've actually been successful. So we feel that we've got an economic system that is rooted in the problem of having too much deb. And we are now basically faced with.

The need for that debt to be cleared out. And it's either going to happen on terms that we set for ourselves or terms that natural market forces will eventually set for us.

From our perspective, it is increasingly probably going to be solved by the latter. And that is probably going to be more vicious and more violent than people hope. Particularly because the longer we try to extend.

That correction out in the future and pretend that it might not actually happen someday, we're just setting ourselves to fall from a greater height when the inevitable correction actually happens.

So when you say we, are you referring to the United States? The entire world, I mean, everything is fiat money now. I believe every currency is fiat. I don't think there is any non fiat currency anymore. I was thinking maybe there's some little podunk country that I don't know about that I'm forgetting. But when you say we, you're talking.

About the U.S. no, I'm talking about the entire world for exactly the reason you mentioned. So we are basically all running the same monetary experiment that I mentioned earlier. And.

The world economy has become so interconnected now that it is virtually impossible to understand how interconnected it is. And because of that, you get into situations where the failure of a smaller player can actually ripple across larger players and threaten the entire system. And I think Greece is a really good example of how a very small country whose GDP is an extremely small single digit percentage of the entire EU GDP.

Was a large threat to the system. And while we don't see Greece as much in the headlines anymore, it is still not a resolved situation. And there are smaller but larger countries waiting in the wings to potentially create even bigger shock waves through Europe when they get to their point of failure. And largely those are the rest of the pigs country out there. Portugal, Italy, Spain, et cetera.

Yeah, right, right. But you don't have to just look at the pigs. I mean, I think all of Europe is pretty much a disaster and it's hitting there a lot quicker than it's hitting in the us The US has some pretty special characteristics, but man, having having been born in Europe myself, love, absolutely love visiting there. I am not optimistic about Europe's future, especially in light of the refugee disaster and the terrorism issues and the fact that, you know, they just sort of let their, their continent be overrun by who knows who, who knows who they're letting in. You know, I mean it's, I mean we have Mexico in the US but that's a totally different dynamic in Europe.

Totally. And you and I could have had this discussion about the potentially mortal weaknesses of Europe, you know, six months ago or a year ago.

Well, I could have had it with you 15 years ago actually, but.

Okay, right, but now to your point, add the current refugee crisis in there. I was just commenting To Chris the other day, that I think that the Europe that we have all grown up with and known and loved for its cultural distinction and whatnot, I think that Europe is actually gone. It just doesn't know it yet. I think we have hit the tipping point where.

They have let in so many refugees, which both are going to.

Shift the cultural dynamic, but to your point as well, tax the social systems beyond the point of their ability to service their populace, where I really think the change that's going to come there both demographically and economically is inevitable at this point.

Yeah, absolutely. Okay. What else is there more to cover there? You really talked about the monetary thing. You didn't talk about species extinction.

Sure, yeah. So that was the economic side. The energetic side really is the biggest part of the story for us. It's a little bit murky right now given how low oil prices are. So we definitely do ascribe to the peak oil or peak cheap oil view of the world. And I think that the data as we see it still very much confirms that we are now headed down the wrong side or the unpleasant side of Hubbard's Peak.

We are seeing this sort of short term. I hate to use the word glut, but it's being used so frequently in the media. I'll use it, but I'll use it with air quotes of oil right now. But one thing to be really clear is it is a single digit oversupply of petroleum in the world right now that's largely caused by the strong ramp up in production in the US from the US Shale plays as well as OPEC basically refusing to decrease its production in light of that and keeping the world oversupplied. But as I'm saying here, it's oversupply by a few percentage points. That's created in over 50% correction in the price of oil. And from our perspective, it's a way too outsized response by the market. And what we're seeing right now is a lot of production beginning to come offline because it's simply not profitable for people to drill for oil at these prices. And we contend that from the US shale story, for most players it was never profitable. So we're seeing the steps being laid now for a lot of future supply to come off the market. And meanwhile, world demand for oil still continues to go up year over year. And we think we're setting ourselves up for a really nasty supply crunch in the next one to three years and we could be back to $150 barrel oil or worse.

Okay, so just to summarize here.

Maybe monetary collapse based on the debt based fiat monetary system, Peak oil. And you know, I mean, of course there are alternatives to oil and those seem to be making, you know, some headway. But peak oil, what else?

And then as you mentioned, the environmental degradation or depletion that's going on. So whether this is the depletion in, you know, drinkable water, especially in key aquifers, we've got a number of areas across the world, big areas, populated areas across the world, but specifically in the States, you know, we've got urban areas like Phoenix that have been draining the water from their aquifers basically to support the population center there that have less than 20 years of life left in them. We're basically pursuing as fast as we can, non renewable resources or resources that renew over decades or millennia and drawing them down at a rate that is, we're never going to see any progress in terms of reversing that in our lifetimes as humans. So whether it's that, whether it's arable soils, whether it's species extinct, you know, in previous generations.

Previous human generations, up to say the past two, there used to maybe be one to two species that would go extinct during an average human lifespan. We're now seeing dozens of species go extinct per year, in some cases per month across the world.

So there's, I mean there's literally charts and charts and charts of data that I can show you, Jason, that show that we are pulling from this earth resources that are not renewable at increasing exponential rates and at the same time leaving behind pollution or environmental destruction that is going to basically take those resources that have been producing for us and within our lifetimes turn them into.

Barren providers of the essentials that we need. I think that the modern American way of farming, for example.

What it does is it strips the micronutrients from the soil, which forces farmers to have to come and bring in, in most cases fossil fuel based fertilizers to then replenish those nutrients in the soil. And after time the soils get burnt out by that process and can no longer be used to grow food at all. And at the same time the runoff from that soil goes into the rivers and whatnot and then creates algae blooms or creates overly dense concentrations of key minerals in the waters that then create dead zones. So again, the business as usual practices that we are using in way too many parts across our style of living is essentially killing those natural systems that we rely on. So we've got this sort of triple threat. We've Got the economic risks that we talked about. We've got the declining net energy that's available to do the things that we want our society to do. And we've got depleting natural resources that are being destroyed or not restored in a human lifespan all at the same time, while the world population continues to grow and grow at an exponential rate. So, you know, my business partner Chris, he's a little bit older than me. He was born in the 60s. When he was born, there were 3 billion people living on the planet. There's now 7 billion people. If he lives to a ripe old age, the UN is predicting there's going to be 9 to 10 billion people on the planet. So our whole story really is based in this resources per capita equation. And we're seeing increasing number of threats to the finite resources we have all the while, while the capita part is continuing to increase, increase. So as we project out into the future, the math just shows us we are going to be living in a future where there is less resources per capita on an ongoing basis. And so our general question is, if that is the case, how do we today prepare for that future as individuals?

Okay, so I can't wait to hear the answers to those. So we've got this, you know, this triad of disaster. It sounds like, you know, that we've really got to be very conscientious of. But, you know, aren't you and Chris Adam looking at new technologies and new resources and I mean, you must be thinking about that when you, when you think of this, this Malthusian ethic, you know, that, that seems to pervade the thinking here that, you know, certainly throughout history, I mean, for hundreds of years. I mean, when was Malthus, like 300 years ago or something, you know?

Yeah, in the 1700s.

I don't know. 1700s, okay. So 300 years ago, you know, he thought, oh, the world's gonna end because we're gonna run out of stuff and there's too many people and blah, blah, blah. But the reality is, or at least so far the reality has been to be more correct, is that all of these terrible people that screw up the environment and, you know, create more debt and consume resources, you know, they actually are the resource. They think of great new technologies and ideas and, and, you know, the, the air is cleaner in, in most places, at least around the US than it used to be. In the 70s, there were lots of movies like Soylent Green and, you know, we were running out of resources, we were gonna have to eat people and, you know, none of this came true. You know, all these apocalyptic movies, they just were so wrong. The future now. And maybe it's a game of smoke and mirrors. Admittedly, I'm open to that discussion for sure, because I think a lot of the prosperity is false. Okay. I'll give you that. Okay. That's the way our system is. But, I mean, life is better now than it was in the 70s, right? You know, in the 70s was this real gloomy time. That's why I pick it. You know, we had stagflation. You know, you look at any 70s movie, and in a lot of ways, life kind of sucked, you know?

Sure, we had the crying Indian TV commercials and the stagflation and all that. No, I mean, Jimmy Carter.

I mean, what could be worse than that, right? Well, maybe Obama. I don't know.

Well, we get this. This is a very common counterpoint that's raised to us. And most of the time, people reach into their pockets and pull out their iPhones and wave their iPhones at us.

Yeah, well, you can't eat your iPhone, as they say. But. But go ahead, skewer my argument. Come on.

Sure, sure. Well, it's an understandable faith in technology argument, right? That, hey, technology is always written to the rescue. Are you dismissing its ability to do so again? And we're not. And to be clear, my partner Chris is a scientist. He's got a PhD in the life sciences.

He's been a big proponent of what technology can do for much of his professional life. I worked for about 15 in Silicon Valley, so I've worked in the heart of tectopia. And let me put it this way, we are rooting in many ways for technology to play a big role in helping us address these big issues. So we need it to.

But I think you really put your finger on the point where.

It hasn't happened, despite the prior warnings, it hasn't happened yet. And it's that yet that really gets us.

What hasn't happened yet? When you say it, what is it?

The arrival of, in your words, these sort of Malthusian challenges that we're facing.

Yeah, the Four Horsemen have not come yet.

The Four Horsemen have not arrived yet. Yeah. And so it's sort of this because it hasn't happened yet, it's not going to happen. Logic, which we don't ascribe to what we say is, regardless of what hasn't happened yet, let's look at what's most likely to happen going forward. And from a technology standpoint, the key thing to Keep in mind about technology, and this goes back to the laws of thermodynamics.

Technology, what it can do is it can help you extract energy, it can help you use it more efficiently, but it cannot itself produce energy. And for us, that's really the rub. So in the past, human beings have moved technologically.

From one energy source to the next, the next always being a higher yielding, higher net energy fuel source. So you know, we move from, you know, wood to steam engines, from steam engines to coal, from coal to petroleum.

So the question is, well, what do we move to next? And that's really where we're scratching our heads. We don't have that next higher yielding, plentiful energy source to power the world figured out yet. And the world is still tremendously addicted to non renewable fossil fuels, particularly petroleum, when it comes to transportation fuels for moving things from point A to point B. And so we look out and we say, look, if we don't know what we're going to transition to next, but we do have a general sense as to what world oil stores are and what the cost of future oil extraction is going to be and what the net energy available from it is going to be. We know that even if we were to find tomorrow in the lab the next great energy source we're going to transition to and the world lined up behind it, there's going to be a period of transition.

Okay, so let me address that for a moment. So there are many things out there, but I want to bring up one that maybe fewer people have heard of or even know about. So I want to address, I mean, you know, many people are of course familiar with solar and all these other energy sources and hydrogen, etc. Right. But you know, nuclear fusion, okay. Do you know that Lockheed has a patent now on a nuclear fusion reactor? Nowadays we use fission, right, where we're splitting atoms in reactors. But fusion is far more efficient. It produces maybe four times the amount of energy and, and minimal waste. Okay. It's just, it's an incredibly efficient concept and it's experimental channel okay. Still. But they have a patent on a nuclear fusion reactor that would fit on the bed of a pickup truck. And they say that they can roll this out within 10 years or less. That means basically unlimited free energy. So technology can produce energy. I mean, admittedly, I guess it uses some atoms, but I don't think anybody's going to notice that are going to run out of atoms anytime soon. So you know, I mean, there are amazing things like, you know, I had the co author of Peter Diamandis book Abundance the Future Is Better Than youn Think on the show a while back, Steven Kotler and I'm sure you know their work and I follow Peter's work a lot. I mean, man, it's like every week I'm hearing about some amazing new technology. When you address species extinction. I was just reading an article literally last night about clones. And admittedly, hey, we're playing God. And you know, I don't know what the ramifications are. Nobody does probably yet, but China is cloning cattle like crazy to meet protein meat demands. And so, so they, they are cloning cows all over the place in China. Okay. And you know, the FDA has come out, I have issues with the FDA nonetheless, with a statement saying that cloned animals, cloned livestock is, you know, has, presents no different problem than live livestock in terms of diseases or issues and you know, whatever issues cattle have. Right. So, you know, maybe, you know, and they say they can bring back to life species that have gone extinct, you know, through these cloning processes. Now they're cloning cattle, dogs, racehorses, all kinds of things. So, you know, maybe that problem is going to be solved in this way. Maybe the energy problem will be solved by Lockheed. The monetary problem, I don't know if that can be solved without either a debt jubilee or you just kick the can down the road, you know, maybe, maybe a reset of at some point. And you know, that one's not done through technology. You know, it's not the same kind of thing because that's a human construct for sure. But your thoughts?

Yeah. So I might look at things a little bit differently than you. I see that the economic ones, I think in theory are the easiest ones to address because we've chosen to have this monetary system that we have. We don't have to have it. There are different types of systems out there. They don't have to be debt based.

But you can see that we chose it for a reason. And when I say we really the powers that be, the politicians and, and maybe the Bilderberg or the Bilderberg Group or people who really run the world, I don't know, you know, what you'll believe on that. But you know, they wanted to not have a limit on spending because if they don't have to be responsible, then they can buy votes and you know, the incumbency can usually stay in power. And if it's not the single person as the incumbent, it's the party or, you know, the greater party, which is the, you know, puppet Masters up there at the Bilderberg Group or whatever. And so, you know, it's a, it's a pretty good deal for governments and politicians to have a fiat currency. I mean, philosophically, I hate it, but you know, you can, you can see why it works so well for them.

Oh, sure, you and I look at it very similarly. It is a great system for concentrating wealth, which it sadly has done very well.

It has, it has. But wealth, you know, I mean, you could take issue with that too. I mean, wealth is probably far less concentrated than it was during the beginning of the Industrial Revolution when you had, you know, the, the, the antitrust laws come about and the Melanie, the Mellons and the Carnegie's and the Rockefellers and so forth. I mean, wealth isn't as concentrated as it was then, right?

Actually, actually it is. It is actually the top 1%, specifically the top 0.1% own more of the nation's assets than they have at any given time, and that includes with slavery.

So, Adam, I guess my point is, okay, let's agree wealth is more concentrated, but what is the, really, how meaningful is that? In other words, how much does it hurt the people at the lower end of the socioeconomic spectrum? Because I would say that in the past when wealth was concentrated, those people really didn't have access to things. And now they do. You know, they can publish their ideas and the whole, they, they can be heard by the whole world, just like we're doing on this podcast. I mean, I'm not a big media company yet. People in 164 countries are listening to us right now. That's an amazing thing. You know, you can go anywhere. I mean, pretty much everybody can travel now. And, and you know, travel has become very cheap in a lot of ways since, you know, Reagan deregulated the airlines. I would argue that that's the reason. It's not very pleasant pleasant, admittedly, but.

But you know, it's the Greyhound bus in the sky, but, but it is cheap and accessible. So in your book, I love how you address these different forms of capital. And maybe wealth is more concentrated. But if wealth, what does wealth really mean? Does it mean. It means comfort, access to things like healthcare, education, and having your voice heard, I would say, and being able to go and explore the world. So how much does it even matter?

Right.

Well, so a couple of things wrapped up in that and the one I won't dive into right now, but as a really big believer in sound money, I think.

When we're talking about financial wealth, financial wealth, equality, in a system that gives the same opportunity to all players is very, very important. And I think we could probably have a whole podcast over that importance. But to I think the spirit of your particularly with the quality of life that we all enjoy today, and I totally agree, is the average person, even in the lower middle classes, would be the envy of kings of old in terms of what they're able to do. And that's a huge testament to the role that both technology has played in our lives, particularly in recent decades. But I think really at the core of it all all is the energy story is the fact that over the past several decades, we have had more net energy per capita available to the people living on earth, particularly in the developed nations.

We've had more net energy per capita than at any point in human history. And that has allowed us to do many and wonderful things. And we have a lifestyle that is, again, it would be the envy of any generation that ever lived on the earth up until a couple of decades ago. Ago. So why does it matter to your point? Well, this goes to our concerns, looking at the math that as we go down the back end here of the net energy cliff, that we are going to be able to do less and less of the things that we currently enjoy. And so the general premise of the book is, if that's something that is of concern to you, what are the steps, what are the investments that you can take today to build resilience against this coming future? And I use that word resilience very specifically.

Okay. And explain resilience as you're meaning it.

Sure. And resilience is really the ability to rebound from adversity so that no matter what insult is thrown at you, you have the highest potential to return back to the state at which you started at.

And we find that most people live very unresilant lifestyles, meaning that the loss of a job, meaning that sickness, meaning that.

Some sort of unexpected crisis could really materially and potentially permanently change their status of living. So to your question about what is true wealth really? We think true wealth is the ability to live with resilience and to be basically left able to pursue your own happiness. When we ask ourselves, okay, so if that's really what true wealth is, what are the components that make up that kind of true wealth? Financial capital, money more or less is important to that endeavor, but it's not all important. It's not the only thing. We know a lot of people who.

Potentially have a lot of money but are quite unresilant or quite poor in the rest of their lives. And I'll talk more about the other forms of capital in a moment. So you know what we're talking about. But the key point to get across here is that money by itself is not the be all, end all. And it's very important to realize that it is an important form of capital, but it is not the only, nor is it the most important form of capital. So what are those other forms of capital? Well, the framework we use breaks down eight key components that we focus people on. There's financial capital, there's living capital, material capital, knowledge capital, emotional capital, social capital, cultural capital, and time capital. And I don't know if we'll have time to talk about every one of those in depth. But for example, living capital is the living systems upon which we depend. And no living system is more important to us than our own bodies. Right. So it kind of goes back to the old adage, if you don't have your health, you really don't have anything, do you? Right. So it doesn't really matter how much money you've got in the bank, if you're not around to enjoy it, that money is not going to do you any good. Right. So taking care of your own personal body, both in terms of its general health and wellness, but also its capabilities, because we can see scenarios in the future where you might need to do more things by yourself than we currently have to do today. Right?

Yeah. Yeah. Okay. So listen to my longevity show for that one. Longevity and biohacking show. That's good. But dive into these others. I'm dying to hear about the others.

Sure. So material capital is really the stuff that we have in our lives. So this might be your home, your homestead. It would be your energy systems. Are you providing some percentage of your own energy yourself at home? Are you using the energy you have efficiently? It's the cars you drive, it's the tools that you have at your disposal. It's really all of the physical stuff that you rely on to do the things that you want to do in life. Life, it's probably the one we can all relate to the most. Then there's emotional capital, which right up there with health is in contention for probably the most important. This is the ability to deal with adversity and not basically be overwhelmed by it. A lot of people that just don't have the emotional fortitude to deal with change, to deal with setback. And I'll talk about that at a large level when I mention cultural capital as well. You've got Social capital. So clearly this is the relationships that are in your life, the role that you play in your community. Who are the people that you depend upon to do the things that you can't do well on your own.

In return, what role are you going to play in terms of providing those types of services and support for people who don't have the strengths that you have? If we enter a time where we begin to live a little bit more like past generations, say like your grandparents, this would all have been totally normal to them. What are those relationships that you rely on to be there for you when you're in time of need?

Knowledge capital is basically the stuff in your head. It's what you know as well as what you know how to do, right? So this is basically your knowledge base as well as your experience base. So you know material capital. You might have invested in a bunch of tools. The question is, do you actually know how to use them? Well, your knowledge capital would be actually being able to go out and.

Conduct repairs on your house if things broke and somebody wasn't available to come fix it for you. It's your profession. Basically, what is the type of mastery you're going to develop that creates value in the world that others are going to compensate you for again in the world that exists today? This is basically what's behind your profession and what your employer or your customers pay you for in the future. This might be what do you know how to do that?

Let's say there's a period of social unrest or a banking holiday like they had in Greece. What are you going to do to put food on the table when the systems that we normally depend on aren't functioning as we generally expect them to? There's time capital, which is essentially how do you manage your time and how do you, you prioritize your energies in terms of accumulating all these different types of capital? Basically, how do you use the most valuable asset that's out there, which is the time that you have on this?

So that's where I would say people are starving. That one time capital for sure. In today's world at least, yours truly. I don't feel like I have much time in life.

We don't have that much time. And it probably in many cases a lot of us are using time in unproductive ways, even maybe in ways that feel falsely productive, that aren't. But certainly in a social media dominant, Facebook, YouTube type society like the west lives in, you can make a pretty good argument that we are not using the time that we have to its best use. And then lastly there's cultural capital. And this is the one that you can personally influence influence the least. But it's very important to be aware of what cultural capital you have at your disposal or don't have at your disposal. And the best way to summarize this is that sort of how are the people around you going to react under times of stress? And a really good way to give an example of this is.

We had Hurricane Katrina hit New Orleans, and within 48 hours, New Orleans basically turned into a hellhole. Right. Lord of the Flies, people looting, vigilantism, police shooting on American citizens really devolved quickly. Right. In Japan, similar situation.

There was a tsunami that created in fact, an awful lot more destruction and death than would hurt. And Katrina did New Orleans, almost no examples of looting. The police there were looked at as saviors in terms of their relief efforts and rescue efforts and getting people to safety. Towns pulled together, rebuilt very quickly.

And same insult, just incredibly different sort of DNA, cultural DNA in terms of how we rally around our fellow man during those times of stress. And I'm not making a point necessarily to say one culture is better than the other. I'm just saying they were react very differently. And it's very important for you to understand kind of the operating rules there with your culture and to ask yourself, is this the culture I want to be in, given what I think is likely to happen? And you really have sort of two choices, which are to either assimilate into the one that you have and make the best of it, or relocate.

So tie this into our prior discussion, if you would, now that we understand, understand the forms of capital.

What does that mean? And I want to kind of get it back on the monetary track a little bit before we wrap up.

Sure. Sorry. Did you want to set a stage?

No, I don't know exactly. I mean, look, I talked to you before you got into the different forms of capital about technology and how it's basically flattening the. The world, providing access to people who, you know, don't even have much money, you know, but they still have a smartphone. And that is, I think, an extremely positive thing. So, you know, you were talking about a lot of these, you know, negative things that are certainly possible. And we're just trying to kind of predict what. Which way is it going to go, you know, and so, you know, maybe tie it mostly back into kind of the. The monetary side of things, because I think that's what our audience is mostly interested in.

Sure. So let's go back to 2008. I think everybody still remembers what a scary period of time 2008, 2009 was for the country. We had.

Job losses in the millions. Deepest recession since the Great Depression. If you actually follow this stuff closely, you learned how close the financial system came to actually completely seizing up, meaning you would go to the bank, try to get money out of an ATM and the money would not come out. Right. So I think we can remember that state of fear. So none of the underlying factors that created that crisis have been addressed since we have literally papered over them with.

We always do that. We always just kick the can down the road.

We just kick the can down the road. Right. But it doesn't mean the problems go away. Right. And these were problems that people like Chris and other people in this space who really focus on this stuff full time were warning about for years beforehand. So this wasn't a crisis that appeared out of nowhere and caught everybody flat footed. I mean, it did catch most of the world flat footed, but there were certainly a lot of people out there that saw the warning signs and were warning that this was a mathematical inevitability if we continued along the path that we were. And we did. And then of course, things tipped over well, so now we've flooded the world with a bunch of, a bunch of stimulus. We've created a false sense of prosperity, which when you look at the numbers, it's really remaining concentrated in very few hands. The average person is not feeling as flush as they were in 2007 today, despite the fact that literally trillions and trillions have been pumped into the world economy since. So from our perspective, we are concerned and increasingly confident that we are tipping back into another major crisis on the financial side, just like we did in 2008, except it's going to be worse this time. It's like we climbed up a ladder, we got to a point of instability, and instead of climbing down a few rungs, we climbed higher. And therefore the fall is going to be even more damaging when it occurs.

Okay, so let me ask you this. When you say you're talking about the whole world, but mostly since the US has the biggest economy, it's the US and most of our listeners are US or at least Canadian. Right. And so, you know, I've argued this before and I, I really think it's true. And by the way, this episode's going kind of long, so, you know, maybe we'll do it in two parts, but I think the US can get away with this. I don't think it's fair or right, but you know, when you've got the world's largest military, largest economy, largest brand name and pretty special, special piece of geography in the world, you could just probably do this forever, or at least for decades to come. Again, I don't think it's right. I just think it's the way it is. I think they can keep papering over, I think they can keep kicking the can.

That's really what we come down to which is the how long can this go on? Quite honestly, I don't know too many proponents who think it can go on forever. But some people say, look, it can go on for another decade or two. Look at Japan and what they've been able do to to do. From our perspective, we don't think it can for a variety of reasons. One is there are so many systems in play that impact economic growth where there's great instability. And we've talked about the energy space and we've talked about natural resources which again are used to drive economic growth. But we are getting to a point where the ability to service the debts of the system are what is going to bring it down. And that may not. You're right. In fact, we agree with you. We don't think the US is going to be the first to stumble. We have a philosophy that collapse happens from the outset.

Oh, and I forgot to mention the reserve currency. A minor little detail, but yeah, we.

Have completely stacked the deck into our unfair advantage and we don't disagree with that at all. But our general philosophy is that collapse happens from the outside in and it's the weaker players who fail first. The question in this world is at what point does the marginal weakest player.

At what point is that player so interconnected into this new global system that we talked about earlier where it matters. And it basically is that first domino that then topples a bigger domino that then topples a bigger domino, right? And again we saw a little microcosm of how Greece almost played that role in Europe. So the question is, is as the other players on the board start weakening, how quickly does their toppling begin to actually make its way into the center, into the really large economies? And again we've created this false prosperity through unprecedented money printing and stimulus and the world is still, basically still stumbling along at 2ish percent GDP growth. So things aren't going gangbusters. So if we get to a point where the issues in Europe begin to drag down a country the size of Spain or Italy, that is going to matter for countries and economies like Germany. And if Europe as a major US trading partner really begins to have major issues, what is the contagion effect going to be over here? Same thing in Asia and same thing in South America.

We think that there's too much instability in this story for us to be able to skate through this for the next couple of decades to essentially pull a Japan.

So do you think, do you think the effect of this. I think it could be like a zombie economy or an inflationary economy. What do you guys think? I mean, kick the can down the road, export our problems to other countries, which is essentially what the US is doing. It's like the concept of we get to enjoy our all the fruits and the Chinese get to sweat making them. That's sort of a modern version of slavery in a way. What do you think will happen here? What's the economic malady that will beset us if it's not an overall crash, which I don't think that's very likely. What will it be? Will it be inflation, deflation, stagnation, zombie economy?

Great question. So I'm going to answer it with two parts and again I'll try to be concise here. The first is the general trend that we think that will happen is, is first a very painful deflation followed by a very robust inflation potential hyperinflation and essentially what the market wants to do. What's trying to happen, what natural forces are trying to engineer here is a deflationary correction where asset prices have been overinflated by all this stimulus that's been pumped into the system and.

Lots of mal investment, lots of asset bubbles that can't be supported indefinitely and need to correct. That's what the central planners are currently fighting all hands on deck right now and they're keeping it at bay. We think eventually what's going to happen is those natural forces are going to win out. You're going to start seeing price corrections and we could see another 2008 style market decline at that point in time. We think that's when the central planners are going to basically go the nuclear option and just say, look, you haven't seen anything yet in terms of what we're able to do.

We're going to print like crazy.

We're going to print like crazy and that's when inflation's going to win. We think you'll see programs like quantitative easing, but instead of it being handed to the banks, it'll be handed directly to the populace. Hey everybody, here's your check, right? And that's the point at which we think money really begins to lose its value, all value. And that's the point at which we say, look, when that happens, walk, not run, to move from your paper wealth into tangible wealth.

Are you a gold bug?

I wouldn't call us gold bugs. We certainly are proponents of owning some precious metals as a way to preserve wealth and preserve purchasing power. I think in general, though, we're hard asset bugs, if you will. Meaning we think the pendulum has shifted over the past hundred years. In the old days, very easy to point to the richest person in your town, he was the guy that owned the most land. Right. Over the past couple of, basically past two generations, a lot of wealth has become financialized and it's become claims on real forms of wealth. But we really think that the smart thing to do going forward is to put your wealth into things that can't be inflated away and to actually own the tangible assets that yourselves. So whether that's real estate, whether that's businesses, whether that's hard assets like precious metals, et cetera, we strongly advise that people consider putting a greater percentage of their assets into those type of investments.

So commodities. Yeah. Real wealth, it's intrinsic. Okay. Anything else?

Well, so your question to me earlier was, so what's going to happen? Are we going to struggle along for decades? Is it going to turn Lord of the Flies overnight? We don't know is the honest answer. But we generally say we see it as kind of a slow grind. And the best analogy that we can think of is imagine like a bowling ball going down a staircase where it rolls along a baseline for a certain period of time. And then there's going to be something that comes along that creates a period of change, change, some quick change. So you get that drop to a new state, a new lower state, and it's during that drop when you're going to see the greatest turmoil. And of course, as we say, local mileage is going to vary. So if you lived in Detroit over the past 10 years, your experience has been extremely different than if you lived in Silicon Valley.

But we'll go through that transition. We'll then be at a new baseline for a period of time, and things will stabilize. And. And then there'll be another insult and boom, we go down another stair. So we think it's going to be a slow grind like that. And again, it gets back to the general premise of sort of our crash course framework of we're entering this future of less. So as we do that, what are the things that you can do at an individual level to insulate yourself from these threats and enjoy your life, have a great quality of life, live with purpose, live happily. And again, if we're totally wrong, and Jason, this is what's important for me to say here. If we are totally wrong about this, but you follow the advice that we give in the book, you are never going to kick yourself for becoming healthier, for getting to know your neighbors better, for managing your money more responsibly and growing.

I agree, I agree. And becoming more self reliant.

Exactly.

Sure.

Even if the insult turns out to be a natural disaster. Right. It's nothing that I'm talking about. You just happen to live in the next Katrina zone or whatever. If you have some of these investments in place, you are going to weather some that far better than the average person.

Yeah, well, listen, I, you know, I host a survival show too, so that's, I definitely agree that just a prudent amount of this is not being some kind of paranoid weirdo. It's just being smart, you know, I mean, it's just being smart and it's so inexpensive to do, you know, so absolutely good stuff. Well, give out your website, Adam. Very. It's always interesting talking to you guys.

Oh, it was a real pleasure, Jason. You asked great question. You're definitely a very articulate, curious interviewer and I really appreciate it.

Thank you very much.

So our website is peakprosperity.com that's peak. Like a mountain peak. P E A K. And we've mentioned our new book Prosper a couple of times in this discussion. If you're interested in learning more about the book itself and where to get it, you can go to peakprosperity.com prosper and one thing that was really important to us as we launched the book, we wanted to make sure that it was available in all the major formats. So it's available as a principle book, but it's available as an ebook for.

E readers, but it's not on Audible yet. Hopefully it will be by the time someone hears this.

The publisher tells me it should be up this afternoon, so hopefully by the time people are listening to this, it is already up. But yes, there's also an audiobook as well. And for people that enjoy listening to podcasts, we wanted to make sure that we had the book in that format as well. So it should be on audible.com, but even if it's not, I know it's up on audiobooks.com Good, good stuff.

Well, Adam Taggart, thank you so much for joining us. And I hope the future is bright and I'm sure more than anything, you guys would like to be wrong.

Exactly, exactly. We think, look, you know, hope for the best, prepare for the worst. It's a good strategy.

Very, very good quote. I've always lived by that one. Good stuff. Great talking to you, Adam.

You too, Jason. Thank you so much.

I've never really thought of Jason as subversive, but I just found out that's what Wall street considers an to be. Really? Now, how is that possible at all? Simple. Wall street believes that real estate investors are dangerous to their schemes because the dirty truth about income property is that it actually works in real life. I know. I mean, how many people do you know, not including insiders who created wealth with stocks, bonds and mutual funds? Those options are for people who only want to pretend they're getting ahead. Stocks and other non direct traded assets are a losing game. For most people. The typical scenario is you make a little, you lose a little and spin your wheels for decades. That's because the corporate crooks running the stock and bond investing game will always see to it that they win. This means unless you're one of them, you will not win. And unluckily for Wall Street, Jason has a unique ability to make the everyday person understand investing the way it should be. He shows them a world where anything less than a 26% annual return is disappointing. Yep, and that's why Jason offers a one book set on creating wealth that comes with 20 digital download audios. He shows us how we can be excited about these scary times and exploit the incredible opportunities this present economy has afforded us. We can pick local markets untouched by the economic downturn, exploit packaged commodities investing, and achieve exceptional returns safely and securely. I like how he teaches you how to protect the equity in your home before it disappears and how to outsource your debt obligations to the government. And this set of advanced strategies for wealth creation is being offered for only $197. To get your Creating Wealth Encyclopedia Book 1 complete with over 20 hours of audio, go to jasonhartman.com store if you want to be able to sit back and collect checks every month just like a banker. Jason's Creating Wealth Encyclopedia series is for you.

For real estate investors, if you have one or 100 properties, managing them can be challenging. What you need is a solution that simplifies a complex process and gives you control while saving you money.

Introducing Property Tracker, the best tool to accelerate your financial freedom. At a glance, you can evaluate, evaluate, track and manage the financial performance or your real estate. With Property Tracker, you can quickly analyze your properties and make informed decisions. You can easily track and organize all of your income and expenses along with legal documents, contracts, contacts and your mortgages. It makes tax time a lot easier too. We simplify the management and provide you with with actionable insights into the financial performance of your portfolio.

Sign up for your free account@propertytracker.com today.

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, hartman media.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 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 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.