CW 652 – Danielle DiMartino Booth – The Federal Reserve and Money Strong

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Welcome to the Creating wealth show with Jason Hartman. You're about to learn a new slant on investing, some exciting techniques and fresh new approaches to the world's most historically proven asset class that will enable you to create more wealth and freedom than you ever thought possible. Jason is a genuine, self made 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 show.

This is your host, Jason hartman. Episode number 652 what Time Is is an amazing time to be alive. For those of you around the world who celebrated Easter, Happy Easter to you. And why am I saying it's an amazing time to be alive today? Well, yesterday I was just thinking about the Internet of things. Yes, you've heard that phrase, the Internet of things, right?

They've been talking about it for the past couple of years, past few years.

How everything is becoming connected to the Internet. And I was thinking about my toothbrush, I was thinking about dental health. And I was thinking about how my toothbrush, a Braun Oral B toothbrush that I purchased about a year, maybe a year and a half ago, is connected to the Internet. There's an app for that, as the saying goes. By the way, Apple is now getting into the movie business as well. Of course. Netflix, Amazon, hbo, Showtime, they're all producing their own original content now, rather than being beholden to movie studios. Yes, this might be a tangent warning. Tangent alert. So Apple is getting into the game now, and the first production they're doing is going to be about apps.

Yes, A. I guess it's going to.

Be a movie or maybe it's a series, I'm not sure which about apps. But why is that happening nowadays? Ask yourself. Well, the technology has become so accessible and so inexpensive to produce movies and documentaries and series and television series.

I don't know, is television even the right word for it?

But a series, whatever. And so all of these different groups and companies and individuals are getting into the game. You know, I want to produce my own documentary.

I've talked to you about that before.

It's called Rigs Heads they win, tails, we lose. And it would be about how different parts of society are rigged. Of course, the legal system is rigged.

And I want to tell you about.

A movie I just finished last night. Well, this morning actually, on that subject of how the system is rigged. And yeah, you know, mostly about the financial system, about Wall street and how it's rigged against small investors and individual investors. So, yes, it's an amazing time to be alive. Back to our topic at hand, Jason, thank you. Keep yourself on track, why don'. Yeah. And all these things are connected to the Internet. My toothbrush is connected to the Internet. It has an app and it monitors my brushing habits.

Yeah.

Am I pressing too hard? Am I brushing long enough? Am I brushing too long?

Am I brushing in all the right.

Spots around the mouth? And so everything is becoming connected to the Internet. Recently I purchased some of those Philips Hue light bulbs. My light bulbs in my house are connected to the Internet. My alarm system is connected to the Internet. Of course. My television is connected to the Internet. And the most amazing of all, possibly, which really, I don't know why this should amaze anybody. I don't know why more auto manufacturers aren't doing that. Well, my Tesla, my car is the world's first truly Internet connected car. And there's an app for that. So I can tell when the car is charging. It alerts me to when the car is finished charging. If the charging stops, I get an alert. Maybe someone unplugs it.

Right.

Or the fuse blows and the charging.

Is interrupted for whatever reason.

So all of these things are connected to the Internet. And that's making life incredibly convenient in so many ways. So what time is it? It's an amazing time to be alive. Soon. Well, really not soon, but now on an Apple Watch, you can monitor the connection of all these things to the Internet. I was at lunch today talking with a friend about all of these food delivery apps. What was one called? Sprig, I think. And, oh, there's just a whole bunch of them, prime now, which is Amazon's version. You can get all of this stuff so quickly. It's so amazing. And we had just recently the first package, of course, Amazon has been talking about this for a couple of years. Delivered by a drone. It's an amazing time to be alive. And so as we see all of these things, it's going to make our life more convenient by leaps and bounds. These aren't incremental growths in efficiency and convenience. They are monumental increases in efficiency and convenience.

Yeah.

As we talk about rigged this movie I just finished that I really want to encourage you to see. Hopefully all of you took my recommendation and you saw the Big Short recently. The Big Short, which is now on Apple TV and streaming services. I believe it's on Amazon prime too. So check that out. If you didn't catch it in the theaters. The Big Short, based off Michael Lewis's book by the same name. So this other great one I just finished this morning, 99 houses. It's called 99 houses. Or is it 99 homes? Yeah, let me just look. Sorry, it's 99 homes. 99 homes. Fantastic documentary on the housing crisis and the subprime crisis based in Florida, which was really ground zero for. For so much of this foreclosure fraud and all of this kind of stuff. And it was a fascinating account of a single father named Dennis Nash. He was a construction worker in Orlando and he was evicted. He lived with his mother and his young son, and they were evicted from their home. And these process of eviction and foreclosure, a lot of fraud to make it all go faster. Well, turns out sometimes in life there are strange bedfellows. Well, it turns out that Dennis, who was evicted, who hated the man, the real estate broker who orchestrated the eviction and knocks on the door one morning with two police officers and a crew to change the locks and do other work on the house. Turns out he's forced that day to pack up as much as he can. His stuff is moved out into the street. And it really shows you the human side of this. I mean, I think that's important to see. So he's got to move out into the street with his mom and his young son and move into a motel that same day. And this motel was sort of this place where a lot of evicted homeowners, former homeowners, were living. And so all of this evolves, and turns out that the guy, Rick Carver, who's this sort of real estate mogul that's doing all these evictions, actually ends up hiring Dennis Nash. And it's this great story about their working relationship together. And Dennis Nash, of course, is this very successful real estate or not?

Dennis Nash, Rick Carver, this very successful.

Real estate broker who's orchestrating all these evictions and reselling the homes for Fannie Mae, okay.

And all of these different secondary market.

Sources who actually end up owning the homes through foreclosure. And of course, there was tons of fraud on this. We've done lots of shows on it in the past. Chase was one of the Biggest offenders. They were the one that was the first one to be nailed with robo signing.

Right.

What was robo signing? Literally, there was no possible way they could have reviewed the foreclosure docs. I think one person's account was that these were just rubber stamped, these foreclosures. They literally looked at the whole package, which is many, many pages long, for less than 30 seconds each, rubber stamped it, foreclosed on the people, blah, blah, blah, had no idea what was going on. So lots of fraud. Right. And what turns out happening is Dennis Nash goes to work for Rick Carver. He starts making real money by actually orchestrating the foreclosures, which he was a victim of previously.

Right.

And so then it goes on to show how Rick Carver is defrauding the government at the expense of all these homeowners. And they're literally uninstalling. We should say stealing, because that's probably the proper word. Air conditioning units from these homes. And they take a picture of the pad with no air conditioning unit, and they put it in the pickup truck, bring it to the storage unit. And then Rick Carver explains to Dennis Nash, look, I can charge the government Fannie mae an extra $3,500 if I just tell them the air conditioning unit was stolen. He adds onto that, he starts stealing. Well, removing, uninstalling, whatever the right word is. Pool pumps to get more money from the government and defraud the government and the taxpayers even more. Right. Because Fannie Mae, as we know, is this pseudo governmental entity. Right. I guess now, after the subprime crisis, it's really a completely governmental entity. Oh, by the way, we do have a guest today, Jason, so keep your commentary a little bit short because this guest is really good today. Who's the guest? Well, it's Danielle DiMartino Booth from the Federal Reserve bank of Dallas. Yeah, she's fascinating. We'll get to her in just a few minutes here. So this movie is great. You absolutely must see it. It turns out. Well, I won't be too much of a spoiler here. Spoiler alert. A little bit, but not completely. Turns out Dennis Nash starts to feel bad about this whole thing, and he gets a conscience, and he sees all this fraud going on, and the whole thing just evolves. So you must see this movie. It's really good. 99 homes. It's on Netflix. Amazon Prime, I think, has it, too. Apple TV has it, I believe, so. Check it out. Fantastic. 99 homes. Must see it. It's an amazing time to be alive.

We covered that.

Oh, I want to just encourage again, you know, I was talking with one of our clients the other day and talking to them about analyzing a real estate deal. And again, it is amazing to me, especially during bad times. It's not that hard to do it now. But when times were tougher six, seven, eight years ago and people weren't seeing the light at the end of the tunnel a lot, what I noticed repeatedly a mistake that investors were making is they didn't really understand how to keep score because they didn't know how to do the math of property evaluation. So how is your deal going? The deal you're in, the homes you own already, the rental properties you have now, and how might it go in the future on a deal that you're thinking about buying? And what you've got to do to know how to keep score is you've got to know the math of real estate. Now there's this fantastic book, and I had him on the show a long time ago by Frank Galinelli. Frank Galinelli. You can go to Jason hartman.com and you can see that show from quite a while ago. But again, this stuff doesn't change too much. That's the great thing about real estate. So the book by Frank Galinelli, which, by the way, I gave to all of our Venture alliance members at our mastermind meeting in Newport, Rhode island. And by the way, our next one's coming up on Jekyll Island. Yes, Jekyll Island, Georgia, the Creature from Jekyll Island. And we've got G. Edward Griffin coming back up on the show soon. He wrote that famous book. My mom is reading it now. She absolutely loves it. She's deep into that book talking to me about the formation of the Federal Reserve. But Jekyll Island, Georgia, not Florida, is where the Federal Reserve was formed. And that's basically when everything changed.

The game changed way back just over.

A hundred years ago. But Frank Gallinelli's book, that'll help you do the math. Get this book. It's good. What every real estate investor Needs to Know about cash flow and 36 other key financial measures. I told you that was a long title, right?

Get that book.

It's great. It's fantastic. You must get it. And you must also use software that will help you do the math and understand all of this. So you get the book, you look.

At it a little bit.

You don't need to read every word in it because guess what? Your secret weapon is having good software like Property tracker and Property evaluator that will help you do the math and really understand your investments. So you're not an emotional investor. You're an empirical, logical, rational investor. You're, you must know how to keep score. And if you want to really be a more advanced investor, you must come and join us on Jekyll island coming up in early May. Go to venturaliancemastermind.com and check that out. Oh, and by the way, because I glossed over it, the Property Evaluator apps are available in the App Store for iPhone and iPad Property tracker. You can get a nice discount on it. If you go to Jason hartman.com, click on the Resources page and just scroll down there to property analysis and tracking software. You'll absolutely love this. It's so cheap, this stuff. The app is free. You can't beat the price. Free right in the App Store. The app and property tracker do different things. Either one of them, just get something and start using it so that you can become a better investor. And join us in Jekyll Island, Georgia, in the same. We are having our meeting on Saturday, literally in the same room. It's called the Federal Reserve Aldrich Ballroom on Saturday morning, the first day of our Mastermind meeting where they formed the Federal Reserve. It's the exact same room where the conspiracy began. And there are stories, by the way, that the Jekyll Island Club Hotel where our, where our event will be held, is haunted. Haunted by bankers. Yes.

My mom was telling me about that as she was reading up on it.

And she was saying, yeah, Jason, people report that the ghost that haunt the hotel are actually sipping people's coffee. And I said, well, mom, you know how I am being a little bit of a germaphobe myself?

That wouldn't be very sanitary if a.

Ghost is drinking part of my coffee.

So needless to say, I'm going to.

Keep an eye on my coffee when I'm there. But take that for what it's worth.

These old myths and wives tales, I.

Don'T know, maybe they're true. We'll see.

You got to join us.

Go to Venture alliance mastermind.com venturealliancemastermind.com and.

Check out the event there.

And without further ado, you're gonna love the guest today. She was really fascinating. Danielle DiMartino Booth coming to us from Dallas. She's formerly with the Federal Reserve bank of Dallas. And she left because she has got some criticisms. So you're gonna hear about them. Let's jump over to our guest right now.

It's my pleasure to welcome Danielle DiMartino Booth. She is a former advisor to the Federal Reserve bank of Dallas. She is now founder of Money Strong. And she is going to tell us about her time on the inside for about 10 years. This should be a fascinating discussion. Danielle, welcome. How are you?

I'm doing great. How are you doing today?

Fine, thank you. It's good to have you on. And I guess you left the Fed June of last year, is that correct?

Yes, I left in June. June of last year. President Fischer, who I worked for for the better part of a decade, left in March. And I like to say that I followed him in and I followed him out.

Okay, great. Now, when you say President Fischer, a lot of people don't really, they talk about the Fed as though it's one big entity, but they don't think about the different member banks. Who is President Fisher?

So Richard Fisher was probably one of the more unique and hawkish central bankers during the Bernanke era, predominantly the Bernanke era. He was unique among regional presidents because he, like I, had earned his MBA in finance and he had his the beginning of his career on Wall street, as I did in New York. And we pretty much saw the world through the same prism, that is that not just of economic data, but the interaction of economic data with the financial markets.

Right, right. So why did you leave the Fed?

Well.

Richard Fisher asked me to take on a role that is normally exclusive to the New York Fed, that is that of kind of a markets desk, if you will. And most of the regional Feds receive all of their markets, intelligence and analysis directly from the New York Fed. And Fisher actually preferred to have his own unique source for that. So that was why, again, why I followed him in and given his unique personality and that I had committed to working for him and not necessarily for what I found to be an extremely bureaucratic, heavy institution. I was certainly ready to take a fresh breath and leave after he did.

Right, right. So would it be fair, Danielle, to say that you're critical of the Federal Reserve?

You know, I met a lot of wonderful people throughout the years when I was there, some who remain friends to this day. But I do think that the institution itself has become extremely encumbered in overly intellectual, academic type of monetary decision making. And for that reason, indeed, I am critical. I joke constantly when people ask me to sum up the Fed as succinctly as I can. I like to say that since Alan Greenspan came out and put a floor under the financial markets in October of 1987, that monetary policymaking is likened to that of Einstein's theory of insanity, that Fed policymakers continue to try to get different results but using the same thing.

Yeah, right, right. That's such a funny, it's so often been quoted and it's so accurate. I've just got to ask you, I mean I want to dive into a lot of things with you. You're, you're a very interesting guest and so thank you for being on the show. But just sort of the primary question, if you will, that I know so many Fed watchers are asking where are we going and why don't we have inflation? With all of the money that has been created over under the Obama administration, it is just surprising, I think to many that inflation is so tame. I mean, I guess it really wasn't that tame, you know, until about three, four years ago. But before that there was some, there was some good food inflation, certainly college and health, health care are outrageous largely. And you know, I guess that might, I might also have to ask you, the question is, you know, do you believe that the CPI is an accurate gauge of inflation? So that might be an underlying question.

So you strike two different, completely different and separate issues. The first I'll take a stab at. McKinsey came out with what I consider to be a seminal report.

That showed that during the period of deleveraging that followed the worst of the financial crisis 09, 2010, that the actual debt figure in the world grew by 60 trillion, 57 trillion to be exact, to about $200 trillion. And I think what few people fail to grasp when they're trying scratching their heads saying where is all of this deflation if the so called printing presses are running 24, 7. Well, you have to understand that as long as debt levels are growing, the amount of money that has to be dedicated to servicing that debt continues to grow as a factor of size. So as long as you have more money that has to be dedicated to serving a growing pile of debt, by definition there's less money to spend on other things. Hence the deflationary impetus. Even though Logic and Econ101 tell us that inflation should be the bogeyman we're concerned with now that's begun to change and we can talk about that as well. But I'll speak to the CPI question.

Right, but before you do that, let me just ask one question about what you said because that was quite interesting. When you talk about servicing that debt, are you talking about all debt, public and private? You're talking about governments.

This would be all debt, public and private, even Though, as we've watched the chair shift around on the deck of the Titanic these last few years, it has indeed been sovereigns who have been trying to pick up the baton in terms of borrowing as the US household sector reined in its debt because, not necessarily by choice, but because mortgage lending dried up. So it has been a lot of sovereign debt that has been issued. It has been a lot of emerging market corporate debt that's been issued. But I do refer to debt in the aggregate in all forms.

Okay. All right, go ahead. So the CPI issue, many people have been critical of the accuracy, including myself, of the cpi.

Well, the CPI is not as broken as the Fed's preferred measure, which is the core pce. That's even more broken. So call the core CPI kind of the middle, if you will. And the only reason I consider it to be remotely accurate today is because it's above the Fed's 2% threshold. Right. Last week, the most recent CPI data, we found that services ex energy inflation, which really is what hits households the hardest, driven by inflation in areas that you recognize, you know, healthcare, tuition, to say nothing of rents.

Those costs have soared. And services ex energy inflation is running at 2.3%. Energy, excuse me, health care is running at a 3.7% annual rate. Rental inflation is running at a 3.5% annual rate. So for the average American household who has to go to the doctor and put a roof over their head, inflation is a very real phenomenon that is not being realistically recognized by the Fed.

Especially because there's no wage growth.

Exactly.

If you look at median wages in this country, they really haven't been for the better part of a decade. And it really needs to be the median that is tracked for the average American household. Because quantitative easing and other stimulus measures undertaken by the Fed have disproportionately benefited those who have exposure to the financial markets. And that would be the proverbial, and I hate to bring this up during an election season, but the proverbial top 1%, they've certainly benefited to the greatest extent, leaving the median household level of income basically stagnant.

Well, the old saying is the rich get richer and the poor get poorer. And certainly Bernie Sanders types have exploited that. Hillary has too. Why, is that true or is it true? I think it is true because the rich, they can buy assets in the cycles at low prices. They can finance them with incredibly cheap. Well, at least in my opinion, it's incredibly cheap. 3 decade long fixed rate debt. I'm talking about my first love, income property well, maybe after my dog, but.

And I'm not married, so no one's throwing anything at me right now. That is certainly a huge wealth creator that is not accessible to most people.

You know, it's not accessible. And I think one of the gravest sins of, of sort central banking is that it has taken kind of the fire out from under the feet of our fiscal policymakers from reforming the education system. That truly is the tide that lifts all boats and provides opportunities for every single American to realize the American dream. You know, I'm a huge detractor of the minimum wage, and it startles me to hear such vociferous advocacy when you consider the story of Walmart as one example. And what happens when push comes to shove? If your revenues are not increasing and your profits are decreasing, something will have to give if you've increased your labor expenses, and that will come in the form of layoffs.

Well, and I couldn't agree more. I mean, minimum wage laws hurt the exact people the politicians say they're trying to help. Minimum wage laws create high unemployment, especially in minority groups. Minority youth are hurt the most if the market could set the wages. I mean, you know, if two people want to get together and do a transaction, what business is it of the government to get in the way? But this is not exactly a new idea.

No, it's not. But you know, there have been some very interesting things written about economic free freedom in this country and how it has declined as a factor of time since the year 2000. And it really is, it really is educational freedom that unleashes the ability to innovate and then economic freedom that really allows individuals with good educational, solid backgrounds to start companies in this country. And we really have seen a marked deceleration in startups. And because the financing is certainly not there, the educational wherewithal is not there. And we're talking about the greatest engine of job creation in the country that's come to a screeching halt.

All right, well, I don't want to get off on too many tangents. Did you feel like you covered the cpi? And I really do want to get your prediction, if you're willing to make one. As to is the future deflationary, stagnationary or inflationary? So I want to make sure we cover those. Did you feel like you covered the cpi?

Well, right now we're definitely mired in stagnation. I have absolutely no doubt about that, given that just covering the cost of the essentials for households is prohibitively expensive and the costs Continue to rise. If you look at axiometrics, which is my favorite data source for rental income, rents have been running north of 5% here for several years. These are unprecedented figures. And we know that because of student debts, that many would be startup households continue to be stuck in their parents homes because they can't even afford to do that initial rental. So I think stagflation best describes where we are today. But we have seen a marked shift since the Federal Reserve stopped expanding its balance sheet. If you look at central banking balance sheets worldwide, they've been growing at a double digit rate for years. But now we're in a currency war. Now we're in de facto currency wars. And wars are not fought for free. You have to have a budget and the budget that countries are using, and you see this in the monthly data that shows that show that the holdings of U.S. treasuries by the Chinese, by the Japanese have been contracting. That's a reflection of the amount of money that's being required to defend their currencies or to weaken their currencies, depending on the party you're talking about. So that indicates to me that we will have inflation on the horizon again. If you start to see the reversal of this buildup in debt that is deflationary, then that means that inflation is building in this system. And you've started to see that, especially in some of the currency, excuse me, commodity producing countries that have really been hit with a double whammy.

That was really interesting the way you just put that. You said when you start to see the buildup of inflation during a deflationary time or a stagnationary time with debt increasing. How did you just say that? Explain that a little bit.

Well, debt is no longer increasing among again, central bankers and central bankers have been the engines of debt growth, if you will, since the financial crisis came on. But that has stopped. We've been reading alarmist headlines about Chinese foreign reserves shrinking and the Japanese having to take similar measures and those types of trends again when debt starts to decrease. If you think about the ultimate, the ultimate end game, and that's that you have less demand at our treasury auctions at some point in the distant future. And less demand for Treasuries necessarily means higher interest rates.

Right? Yeah. Yeah. Okay. So it does look like we're moving into an inflationary cycle with higher interest rates. At the same time, they would have.

To be accompanied by higher interest rates. But I use the word distant. It's very difficult to see inflation being imminent precisely because There are rumblings here in the United States that as this economic cycle turns, and there's an irony there, and we can talk about it, because right now it looks like there's going to be a reprieve in the economic data. It looks like we might see expansion in manufacturing after several months of contraction. So it appears as if the Fed might actually be forced to hike rates at some point this year. But again, this is one of the longest economic expansions in the history of mankind. I'm a firm believer that central banks can elongate the business cycle but not murder it. At some point we'll have recession and at some point you'll have the Fed step back in and try and perpetuate.

Or mitigate the damage, I should say, to the economy. And that would involve more debt.

Yeah, I couldn't agree more. Danielle, what do you think about the impact. And see, bankers are always focused on all of the stuff we've discussed, right? And a bunch of other data that the hoi polloi, all of us, we don't even know what you, you guys are looking at, which is, you know, you have access to probably amazing resources, of course, but what about the impact of technology and how it plays into all of this? I have been talking a lot on the podcast about robotics and certainly societies have always benefited from technology over the years. And at first everybody thinks, oh well, this is going to displace people. When Elias Howe invented the sewing machine, people clamored and said, what will women do with all their spare time? Well.

I mean, crazy things like that. Are we going to have another 47% of the workforce unemployed? We look at things like the transportation industry and the self driving autonomous vehicle. Truck drivers, Uber drivers, taxi drivers, delivery people, Amazon with drones delivering your packages. What's going to happen to ups? People are not going to be able to retool from that. You know, delivery people and taxi drivers can't start becoming robotics engineers overnight. I don't know, is it different this time?

Well, you know, in a true capitalist society, which we should be, but we've lost our way, all innovation should be economically enhancing. All innovation should, should lead to long term prosperity and growth. But because we have not retooled our workforce, think of what people in Denmark have done during past economic downturns, to name but one example. Australia is another. When there are major shifts in the economy and you move from agrarian or you move from sewing your dresses at home to that sewing machine.

You innovate your workforce, you retrain them, you retool them, you give them the tools that they need to be successful in their lifetimes. Instead, we had zero interest rates, afford Congress the ability to extend 99 weeks of unemployment insurance and essentially atrophy a huge segment of the workforce which may not ever come back. And shame on Congress for relying on sheet financing of obviously through our treasury auctions. Right. Fiscal year 2015, the United States government's interest expense was 1.8%. Well, it's really easy to do nothing and end up having innovation hurt your workforce when your borrowing costs are that low.

Yeah, sure is.

Demographics dictate that robotics should be our friend.

The average human being is living to be much older. They say by 2050, the average woman will be 90 years old. A lot of people don't necessarily in the aging society, they want to age at home. Well, that should open a theoretical door for robotics.

Oh, yeah, absolutely. It'll be a huge. It'll be a godsend to people. I mean, I always say it's an amazing time to be alive, but I agree with you that inflation has got to be baked into the cake. And I think that's what you're saying. So just interrupt me if I'm, if I'm misstating your intention, but I think inflation has to come. However, I think the counter to it is technology, which is deflationary, and I don't know which one will win the war. Governments around the world are being so irresponsible with their spending. I love the way Reagan said it many years ago, he said to say that government speaks like a drunken sailor is an insult to drunken sailors.

And he's absolutely right. And you do have to ask the question. And look, I'm a finance person by my training, and don't get me wrong, I've been steeped in economic theory for years now, but I don't necessarily see a pathway to sustainable rising wages, given the backdrop and the technological innovations you describe. But by the same token, I worry that there's going to be higher interest rates at some point if the buyers of last resort, which had been foreign governments, have to step back. So could we have to rewrite the economic textbooks in time? Could we possibly see flat incomes and rising interest rates which would be devastating? There's not even a term for that.

Yeah, right. I think we're going to have to see, with the huge technological innovations we. We may have to see a more socialist concept, which I hate in theory. I don't know, it just might become a necessity. So many people are displaced, but it's.

A Necessity of our own doing. And for that shame.

Well, fair enough. Yeah, well, I agree with you. And then also with lifespans increasing, I mean, that's going to place huge burdens on government entitlement programs, not just in the US but around the world. And you look at Europe, which is a dying continent, you look at Russia, a dying country in terms of population, Japan is a dying country in terms of population. The US even has inklings of those problems depending on how much the older people outweigh the younger. You've got to have younger people to pay for the older. I mean, that's the whole idea of this great Ponzi scheme that was created in the 30s called Social Security.

Oh, absolutely, you do. And you know, I think that we're so seeing a microcosm of this play out in some of the public pensions in a lot of the states that have been losing companies and losing tax revenue and who are facing shrinking tax bases. Just as the baby boomers are not theoretical accounting figures anymore on their books, they're actually retiring and they're actually collecting pension payments every month. And we will see. You know, Meredith Whitney, I've known her for many years and bless her, but she was early. But I don't necessarily know that she was wrong because I think public tensions are really going to be staring down the barrel of some steep challenges given the unrealistic promises that they've made. And you can back out to your bigger picture of entitlements and you start to see some true trouble brewing.

Oh, I couldn't agree more. We had Meredith Whitney on the show a while back talking about her book State of the States, which I thought was fascinating. A big reason to be a nationwide real estate investor, not a local one. So because it's, it's very different. I mean these, I, I think people are just productive people are leaving big government, high taxed areas. They're voting with their feet.

Well, look, you know, given what, I'm basically at ground zero in terms of being the beneficiary state.

Since 2007. There was a great report that came out a few months ago that showed upwards of 9,000 companies left California and the majority of them landed right here in Texas simply because it's a business friendly state that reflects what it should be to be a business in the United States of America.

Right? Yeah, it sure is. I always said if Texas were to secede from the union, it would become the Hong Kong of the United States States as Hong Kong is to mainland China.

That's absolutely true. And Hong Kong is consistently ranked as one of the top five places in the world to do business.

So what do you think of what the Fed is doing now and how different, if different at all, is Janet Yellen than Greenspan and Bernanke?

Well, she's much more dovish and you almost need to sit down and take a breather on that one because that's saying something.

Can you be worse than Greenspan? I mean, he. Greenspan, I think worse than Helicopter Ben, even, but. Wow.

Well, there's been an acute failure to recognize that monetary policy is not sufficiently strong to increase the size of the workforce, given not just the demographic headwinds, but given the fact that so many people have been out of the workforce and now they're economically disincentivized from ever coming back into the workforce, given the sheer number of social programs available to them that discourage them from trying to return to work.

Yeah. What gets rewarded gets repeated. And that's unfortunately so true. It really is. Well, Danielle, tell us what you're doing now and give out your website and tell people where they can find you and follow you.

Oh, absolutely. So every week I produce a newsletter and I am not a subscription based newsletter as of yet. And I would emphasize the yet, but I've got a wonderful following and the feedback has been very humbling. And I give speeches nationwide as well on the origins of the crisis and where I believe monetary policy is headed. I'd love for anybody to look to my website, www.demartinobooth.com. that's also my Twitter handlemartinobooth. And I'm a proud founder and president of Money Strong, which I always say is better than Money weak.

And Money Strong is a consultancy, right?

Yes, it is.

Fantastic. Danielle DiMartino, Booth. Thank you so much for joining us. Fascinating discussion and keep getting the word out there. It's good to see people questioning the Fed and its policies because more people need to do that, especially with your background.

I'm happy to continue my quest.

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Really? Now, how is that possible at all?

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This show is produced by the Heartbreak Hartman Media Company. All rights Reserved. For distribution or publication rights and media interviews. Please visit www.hartmanmedia.com or email mediaartmanmedia.com Nothing on this show should be considered specific personal or professional advice. Please consult an appropriate tax, legal, real estate or business professional for individualized advice. Opinions of guests are their own and the host is acting on behalf of Platinum Properties Investor Network, Inc. Exclusively.