354: The Great Reset & Repo Market with George Gammon

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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, a 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 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, 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. I mean, 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, you know, we've got all these crazy lockdowns and, 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, you know, 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 mean?

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 they have 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 overnight, 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. 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 season 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 that 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.

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, whatnot. 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 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 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, 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 up 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. It's 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 Forums, 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, you know, 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, I mean, it's on their website. They've got videos on it. 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.

Yes, of course.

This is, this is for your.

It's always for our safety and our protection.

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 the 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 talk about a social score.

I know it'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 know, 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. And that's one thing that's also consistent is they don't want equality of opportunity, they want equality of outcome. Yeah, and they explicitly say that. So they want to, 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, we'll call it 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.

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. This information would go into the cloud in real time. It 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, Right? 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 post, 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. 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 insiders, 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 really 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. So 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. 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. So 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, you know, 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? You know, it's. 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 intentions could be good, probably.

I'm not saying they're altruistic.

Yeah, probably a stretch. But we know that they're central plan. That, that is, 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 allocated to whatever that is or whatever area of the economy that is. 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. In Moscow. Okay.

And they pulled out these big, you know, books, right?

This was in the early era of computer. 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. So I would understand that that's the.

Big problem for or the big hurdle.

That is between me and us achieving our objectives.

Okay, so if you and I are thinking about how to solve that problem.

What I would say is first and.

Foremost we need all of the data.

That'S produced just normally by a free market capitalist economy.

Meaning that we need all the data.

That the individuals in the economy have making the transactions that they make for themselves and their family on their needs and wants on a daily basis. That's billions and billions and billions of transactions and decisions. That's why a top down approach doesn't work because they're just not that smart. There's no group of humans that can possibly have that much data. And even if they did have it, they couldn't make any sense of it. Right. And so I understand that's the problem.

So what I would do is I.

Would have a central bank digital currency.

So why is that?

In order to implement a central bank.

Digital currency we would all need to.

Have an account with the central governing body. So whether it's the Fed, whether it's the treasury, fill in the blank.

We would all have to have an.

Account just like we have an account with, called Wells Fargo or Bank of America. So that would be every American and every business.

So now all of a sudden every.

Single transaction is going into a database, into.

They can figure it all out.

Well, they can figure it out when.

They combine it with artificial intelligence that can self learn. And you combine that with, when you're not only when you combine that with the fact that you're not only getting the transaction history but you're getting the thoughts, see, of every single person in the entire economy in real time. And then you could, I think if you and I are these central planners that are somehow benevolent, we would say, aha, that's it, that's it. That's going to solve the problem of price discovery. And it's going to do it even better than the capitalist system. Because the capitalist, the free market capitalist system relied on human beings. We're going to rely on artificial intelligence. And that is what's happening.

Guess who they'll be. By the way, guess who the elites.

Will be in business with on this?

Google, the company that their stated goal.

Was to organize the world's information. Right. And Google will get all sorts of government favoritism because they'll be in partnership with the government and the central planners. They're. It's the perfect company to do all this.

Yeah. So I, I think that's how if at least. And again, Klaus and Bigglesworth and everything. They haven't explicitly talked about that plan. You just have to kind of put the pieces of the puzzle together by reading everything else. But my point with that is to say that if I was trying, if they came to me and said, George.

I probably give him the bird first and foremost. But assuming that I had, I tried to think that through on a whiteboard, if I was in their position, how would I get the job done? That's exactly. That's how I do it.

Yeah. Yeah. Interesting.

Okay, so let's talk a little bit more about the coming digital currency.

We'll call it the digital dollar, but you know, some call it Fed Coin, you know, whatever it's called, it doesn't matter.

But we're definitely moving toward a digital currency.

100%. Yeah.

And certainly China is doing that too. And I've always said the one that's going to win the game is the one that's backed by governments and central banks, namely the US Government and the US Central bank, the Federal Reserve, because.

They have standing armies.

You know, Bitcoin and Ethereum don't have standing armies. So, you know, they, they can't force people to use it. Right. Which, you know, that's a whole nother discussion we don't have to get into.

But, but the thing is this offers these central planners such a handy tool, doesn't it? Because think about it. If they want to create inflation or def. You know, they can put the money.

You'll be dependent on government for some sort of handout. Right. Most people will. Most people are already.

And, you know, or it'll be. Maybe it won't be like a direct handout, but it'll be like a tax credit.

If you're a more successful person, it'll be some kind of tax benefit.

And guess what?

You'll get it on your, on your phone. Right.

When you get that, they could, like a gift card. They could engineer the heck out of it. They could make that money expire.

Right.

They could say you've got to spend it within 30 or 90 days. Thus increasing the velocity of money, which could certainly create inflation.

Right.

And let me just interject one thing. Remember, they're getting all of your vital signs as well. So obviously they would be providing health care.

So not, not just that there, you know what you didn't say at the.

Beginning when you talked about all this tracking.

Right. This is, you know, this originally came.

With a quantified self movement, Right. But now it's going to go to the next, you know, scary step. Right.

But they're also going to be analyzing what goes in your toilet. You know, that's, that's part of your health care is, you know, what, what's coming out, Right?

Well, yeah, the bottom line, yeah, the bottom line is they're analyzing, let's say, what makes up your healthcare. I don't want to go into the toilet thing. But let's just say they're getting all of the data necessary. So then what happens is they say this is all going to the cloud. So they could say they could restrict your spending. Right. Jason, your blood sugar level has been a little too high over these last couple weeks. So therefore, the next time you go down to Krispy Kreme, your Fed coins don't work.

Right.

Or they don't work there, they can engineer where they work and where they don't work, Right?

Correct.

That's what I'm saying. So whenever you try to buy some sort of product that would have, let's say, sugar, something that would be bad for your health, that might make you a higher risk for the overall healthcare system, see, they would cut you off from that spending. And why are they doing it? They're doing it for the greater good, Jason.

Yeah, I know. It's always for our protection, isn't it, George?

So then the next question as investors and real estate investors more specifically is, okay, first and foremost, what are the probabilities of this coming to fruition? Because obviously there are no certainties. This is not 100%, this is not something that you lose sleep over. This is something just to understand that this is their objective. And then you got to figure out, okay, what's the probability of this coming to fruition. Most people would kind of dismiss it, but I would remind those people that Jerome Powell himself, the head of our Federal Reserve has been talking, and you can just look it up on YouTube, has been talking about central bank digital currencies. So what Jason and I are talking about isn't too far fetched. And then you say, well, that'll never happen in the United States. Okay, Whoever has that rebuttal. I would challenge you to go through the thought experiment of going back to 2019 and hearing Jason and I talk about the United States going into a full lockdown where they would not allow you out of your house, they wouldn't allow you to open your own business, they wouldn't allow you to walk on the beach or walk your dog. And if you. If they did allow you, they would force you to wear a mask indoors, if not outdoors. What would people be saying back then in 2019? They'd be saying the exact same thing. Oh, that'll never happen in the United States. Never happen.

Never happen.

It'll never happen in a country with 300 million guns. Not in my country also, too. And I don't want to be too harsh on these people, but you hear it all the time in the comments. You know, to a certain degree, I feel the same, and I feel, you know, a lot of sympathy and empathy for these people. But they'll say, you know, that'll never happen here because they'll get my lead before they'll get my gold, or they'll get my lead before they'll get my freedom.

In other words, the lead bullet. Yeah, I got it.

That's right. That's right. Meaning we will go to a civil war. The people in Texas and the good old boys and the people living out the country with their guns, they will revolt, and they will go back to the revolutionary days where they'll come up and revolt against the government. But how many people did that?

None that I know of. I didn't see any on the news. How many people revolted against the lockdowns? None.

By the way, George, here's the formula for that.

The powers that be want to keep people just comfortable enough and have their standard of living just high enough so they won't take to the streets.

So they won't revolt.

It's basically, you know, what.

What they all do, they want to.

Just keep it good enough.

So it's. It's not so bad that everybody just, you know, they just take over and there's a coup, Right? Yeah.

What you'll notice is people really don't revolt until they don't revolt over a decrease in their freedom. Very rarely.

Very rarely.

What they do is they revolt when they can't put food on the table.

Right.

That's usually, if you look at history, that's the catalyst is when people can't put food on the table, that's when they grab the pitchforks and the guns, if you will. But it's not when they lose their freedom.

Yeah, that's pretty scary. Now I want to mention something, I.

Just tweeted about this, but global food.

Prices are way up. Okay.

Global food prices just hit a six year high.

Okay, so who says there's no inflation? Right?

Yeah. I'm just going back in my head, I wish we were like the early Americans where we actually would revolt when the government's increased our taxes and our freedom, but that's a whole other story. Yeah. So we're definitely seeing consumer price inflation, which goes back to what we're talking about with the Great Reset. Because if they were able to achieve their objectives, let's just take climate change and being off of fossil fuels in the next three years or even by 2030. Now, I'm not going to debate whether that's good or bad for the environment. Obviously, I think it would be good for the environment and I like clean air just as much as anyone else. So it's not like I want to go around rolling coal with these big diesel trucks and just trying to create as much chaos for the environment as I can.

Nobody wants that.

But I like clean air. I like going outside more than anybody. But the bottom line is, you and I understand that electricity is being created more efficiently and it can be potentially created at a profit, but it's not as dense. And there at no time in history have we have human beings gone from a high density source of energy to a lower density.

Let me just expand on that a little bit. I read a book on this about two or three years ago and it's got a funny long title like bigger, faster, cheaper or some, some. Something like that.

And it was fascinating because, you know.

It talked about electricity as energy and it basically, you know, compared all these sources.

It said, look, the two energy densest.

Things are, you know, number one is the atom. Right. You know, in splitting the atom or fusing the atomic.

And then the other one is petroleum.

It'S oil, it's gas. Right.

And then after that you go way.

Down the list and you look at.

Like solar and wind, there's just not. Or battery storage for it. There's just not enough density, you know, based on weight and cost of result.

Out of those things. They're just not that efficient. The best way to produce power is nuclear. There's no question about it. It's the safest.

Yeah.

And people may have an argument that, well, we have to do it or else we won't have a plan planet in 50 years.

Right.

And I would say to that argument, that. Okay, that, that's fine if you believe that. But what you have to understand is there is no chance that we maintain our current standard of living. If you want to move to green energy, you know, 100% within five years, there's no chance.

And the green energy, by the way, is largely a myth.

The environmental sins that are created in.

The production of solar panels and covering.

Up land with solar panels and windmills, those bird guillotines, the amount of materials that goes into those windmills and the solar panels is insane. The sins created, the environmental sins created in building those things are unbelievable.

They really are unbelievable.

You know, Art Berman is. Art Berman, Yeah, he's a geologist.

I've heard the name, Yeah.

I mean, he's been one of the most prominent geologists in the United States for decades. And I interview him on my show periodically. Great guy. But he walked me through how much petroleum is used to put a solar panel on someone's house in California. I mean, it is staggering because like.

You can't make this stuff up. It's the most illogical thing ever. But you can't get a leftist to hear it. They just.

Yeah, and he starts right at the mining process. It's like, okay, well what do you need in the solar panel? You need bomb. Bam, bam, bam, bam. Okay, where's that mine? Most likely South America. Okay, how is that mine? That's mined with diesel engines. Okay, well then what happens once you mine it? Great. Now it's sent to China to be manufactured into the different components. Okay, great. How does it get to China? On a giant ship that uses massive amounts of diesel. And then you go down that process.

But wait, there's more.

And when you talk about batteries and.

All the materials that go into batteries.

It'S basically slave child, slave labor in Africa mining the materials that make batteries.

That go into Teslas. Okay, so there you go.

The whole point, it goes back to Dr. Thomas Sowell, who's, I think probably your, maybe your favorite.

I interviewed him, he was fantastic. I love him. Yeah, yeah.

And there are no solutions. There are only trade offs. And then we have to understand that with green energy, it's not a solution, it's a trade off, just like petroleum. So the trade off would be that our standard of living would plummet. And I'm talking about, and I talked to Art Bernard because he's kind of. His words, not mine. I'm regurgitating a lot of what he said in our conversations. I said, okay, what's that mean? Basically, the standard of living in the United States would probably go back down to where it was maybe in the 1940s, something like that. You know, we wouldn't be living in caves or anything, but probably like the 1940s. So if that's something that you're okay with, then fine, maybe let's have a discussion. But the people that want to move in that direction, they assume that we're going to move in that direction without having to take a step down. And that's just completely unrealistic. And then you have to ask yourself if that is fair to developing economies such as Colombia, because there's no better way to increase economic productivity faster than with the highest density energy source possible. So if you came in and said, okay, Colombia or Tanzania, in Africa or something like that, okay, no more petroleum products, all right, well, now you're basically saying that we're locking you, your economy as it is right now. We're going to bring it down.

Several notches lower than it already is, and we're going to keep you there for a long, long time, and you're not going to get back up to even where you were for the next 10 or 20 years. Basically, what that's doing, it's almost like a giant corporation.

Creating a monopoly. But in this case, it's just a country. And they're doing so by lowering their standard of living, but at the same time lowering the standard of living of the rest of the world, which puts them into a position where they're the only ones that are able to provide goods and services. Think of World War II. The end of World War II. One of the reasons why our economy boomed is because we were the last one standing. So you have to put that into. My whole point in going over this, though, is that if you move in that direction, it's not just with the green energy. If you look at the majority of what they're outlining with the central planning, it's a destruction of the supply chains in the global supply chains, and it's going to be a reduction in the amount of goods and services the economy produces. And by definition, the amount of goods and services an economy produces is its wealth. It's not the currency units we produce. It's not the gold we produce. It's the amount of stuff.

Currency is fake news.

It's a way to measure. It's just a measurement. So anyway, if you reduce the amount of stuff that we have, but you don't reduce the amount of, let's say, units, currency, units, money, whatever you want to call it that's chasing the stuff, you're going to have the price of that stuff denominated in whatever currency you're using go up and go up significantly. So that's where you get into this long term view that I have of stagflation, where you have high unemployment because they're crushing supply chains. Now you may have an MMT type thing where they have a jobs guarantee program. So official unemployment would be like 2%. But if you X out all the BS, government jobs, the productive, if you just look at the productive jobs, unemployment's at like 30 or 40%. In fact, that's a funny thing that most people, they don't realize, and I don't know if I even told you this, but I was doing some homework for a whiteboard video one time on how bogus the unemployment rate is, just like the cpi. And I went back and looked at how they measured unemployment during the Great Depression to see if we're getting close to that now with when we were back in March or April. And what I found it fascinating is that many prominent economists, when they measured the rate of inflation or, excuse me, the rate of unemployment, they would subtract government jobs because in their view they.

Didn'T produce 20% of the economy right there.

No, no, no, no. Government spending is up to 57% of the economy.

Oh, I was saying jobs, I think federal government jobs, Jobs, right.

Somewhere around 20%, maybe three years ago. I mean, now that the government spending is 57% of the economy, and I haven't looked at the numbers, but I.

Would count, by the way, in a 57% number, George.

And by the way, we do need to be conscious of time and wrap it up here soon. But we'll do more, of course.

But do they count in that crazy insane number you just mentioned? Is that including Federal Reserve as the.

World'S biggest hedge fund.

That'S what I.

Call them, the Federal Reserve is now the world's biggest investor and the world's biggest hedge fund.

Yeah, yeah, well, that's for sure. Well, I don't know how they calculate. I don't think they would calculate that gdp.

I don't know, that's a good question. But how I'm getting to that number.

Is prior to the cerveza sickness, the government spending, if you look at total.

Government, not federal, but you got to.

Look at the local government spending as.

Well, it was about 40% of GDP. And then you look at the $5.

Trillion deficit and the reduction of nominal.

GDP this year or even if we're.

Flat, that takes the number somewhere close to 57%. So then you have to ask the question is, okay, well what's 100% government spending? That's communist Russia. So as we get closer and closer to 100%, by definition, we're getting closer and closer to all out communism or socialism, whatever you want to label it.

Wow, it's something else. It's something else. George, we've talked about a lot of stuff today.

Wrap this up for us. Give us any financial suggestions you have.

For investing and such.

Own a little gold, might want to own a little bitcoin. Definitely, definitely have a 30 year fixed rate mortgage.

Yeah, I think that's.

And then be aware of what's going on. I think a lot of people are whistling by the graveyard, so to speak. And I'm not saying lose sleep over this. I'm not saying this is going to happen. I'm not. There are no certainties, there are only probabilities. I always say that over and over and over and over again because that's so hard because people tend to think in black and white terms. But just try to be cognizant this and start thinking through the probabilities and then maybe adjusting your personal situation or your portfolio accordingly, maybe with the baseline of what we just talked about. And if you are an American or any person in a developed world, for heaven's sakes, make sure you've got a passport. I mean just there is no downside to having a passport at all. And if you got one, think about getting another one. Because regardless of how much gold you have or how much bitcoin, that's, it's not a panacea. Because if you can't get out of your government, control the government, that bitcoin isn't going to do you any good. The gold isn't going to do you any good. If you were in the middle of Venezuela right now and you couldn't get out, it doesn't matter how much bitcoin or gold you have, your life would still be absolutely miserable. So you gotta have that plan B. Yeah.

Good stuff, George.

Thank you so much.

Give out your website or do you want to just tell people to go check out your YouTube channel?

Yeah, they can just go to the YouTube channel. You can just Google George Gammon.

My last name is spelled G A.

M M O N and everything will come up Twitter, my YouTube channel, my website, you name it, it's all right there. Even my podcast, the Rebel Capitalist Show.

Good stuff.

Well, George Gammon, it's always great to talk to you, buddy, and we'll have.

You back in the near future and there's a lot more to talk about with all of this stuff. It's, it's, it's pretty big stuff. So we'll have you back to talk about it more later. Thanks.

Awesome. Thanks for having me.

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