CW 695 - Pat Donohoe - Wealth Standard Podcast, Technology, Future Valuation of Real Estate

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Welcome listeners from around the world. This is your host, Jason hartman, episode number 695, and I am reporting to you today from Los Angeles International Airport, lax. If there's a little bit of noise in the background, I apologize. It won't last for long because we're going to go to an interview I did on one of our Venture alliance members podcast and that is Ms. Pat Donahoe. I was on his show a couple of months ago. We talked about some interesting stuff and I wanted to share that interview with you here as well. So we're going to do that and before we do, I'll just tell you a little bit about my time in Fiji. I'm just heading back, waiting to catch my flight to Phoenix. Was on a 10 and a half hour flight from Fiji and before that, of course, we had to connect from one Fijian airport to the other. And it's been a long, long journey. So I'm very anxious to get home. You know how it is, if you ever done these long flights, they wear you out pretty well. So it'll be great to get home. And it is July 3rd and I gotta tell you, the announcer on the airline when we landed here at LAX on Fiji Airways, did a just a fantastic announcement. I wish I had a recording of it to share with you on the show because it was really just poetic and inspiring and patriotic and nice and it compared where we left to where we came to and talked about Independence Day and the fourth of July. And we're kind of celebrating two Independence Days really because of course we had the Brexit. We talked about that on the prior episodes. Britain gained its independence, which I think is kind of an odd connection considering that what is it 200 and I believe 240 years ago, right, 200 and 240, America gained its independence from Great Britain. So it's pretty odd or just kind of coincidental that that would happen like that so close to our Independence Day. Very, very interesting stuff. And you know, I am so glad to be back home in the US it is just amazing to me how really how the standard of living when I, when I go around the world. Fiji was my 80th country. I've been to 80 countries. Some of those countries I've been to many, many times. You know, for example, France, I've been to many, many times. Many countries in Europe I've been to over and over. It is just really incredible what Americans take for granted. And I do it myself. I'm of course including myself in that when I say that because just the most basic simple things that are adding up to create just a fantastic standard of living in the US are truly, truly amazing. Now when I talk about that, by the way, I'm talking about the economic standard of l and maybe the human rights standard of living too. I'm not talking about a happiness survey or anything like that. One would be welcome to make arguments as to what the happiest countries on earth are and how much that relates to the amount of wealth those countries have. That is certainly open for debate. I am not addressing that issue. That is a more complex sociological issue and psychological issue, but just from an equal economic standpoint and from, you know, from a civil liberties standpoint. In a lot of ways. Although all of this stuff is declining and diminishing, don't get me wrong, I'm not Pollyanna. I'm not some crazy patriot that doesn't see the problems because they. We have many in the U.S. of course, we have listeners from 164 countries around the world. So I'm just kind of making some interesting observations here. But as America is largely, I believe, in decline, it still has a long way to fall before it would lose its spot in the top countries from an economic and standard of living and quality of life perspective. Now again, that quality of life thing could be argued in terms of happiness and say time and stress levels and health care. And one of the things that just bugs me incessantly is the incarceration rate in America. The way we treat drug offenses and these non violent crimes that I believe should be treated as social problems and not criminal problems necessarily. It's just really quite fascinating how it is when you look around the world and compare this America scores Very poorly on a lot of those things, but in so many ways it scores so, so well as well. So it is an amazing time to be alive no matter where you are in the world. Because as we've talked about many times in prior episodes, technology could save us all from all the bad things that governments are trying to do. Or maybe, maybe they're not trying. Maybe they're just defaulting because they're so poorly managed. Governments around the world, all of the stuff that they're trying to do. The question is, which force will win the game? Will technology win the game? Or will idiotic government policies, government spending, debt levels, the financial criminal behavior that exists on Wall street and other stock markets around the world, the derivatives bubble, all of these things? Which one will win? That is always the question. What will be the more powerful force? And I believe human ingenuity and technology will ultimately be the more powerful force. So we will see, and we will keep discussing these issues as they play out and what they mean to us as real estate investors or investors in general. And just one more point I wanted to make before we get to the main portion of our show today. And that is the event I just attended. So I attended Tony Robbins life and wealth mastery events. It was really like two seminars in one in Fiji at his private resort in Fiji. It's called Namali. It's pretty cool. It's definitely a neat place.

One of the rooms I was switched to because fortunately I got lucky in a way. My room had a leak and so they switched me to another room. And it was an $1,100 a night room, which I can't imagine it would be worth $1,100 per night. But that's how it is in developing countries. Everything is really expensive. It's just as if inflation hit. So if you want to know what the future looks like, possibly around the world and in the US as we talk about the battle between the forces of inflation, deflation and stagnation, just look at developing countries and look at Europe, where everything is more expensive, the standard of living is lower, and that's what you have when you have less mature supply chains and more socialistic economic policies. So I'm not necessarily talking about just Fiji here. Of course, I don't think Fiji is big on socialism. You know, it's a poor developing country for sure. Certainly you don't have mature supply chains. You don't have access to good equipment and good industry and so forth. And. And so that's why things are expensive and people are always Asking me. So many people at this event were asking me about real estate investing and there were people there from 15 countries around the world and they were asking me about, you know, should I invest in the US or internationally. And again, I go back to the position that the United States has a very, very unique, very special real estate market that I cannot find rivaled anywhere in the world. Very inexpensive properties, a very well developed market for financing and data. Meaning you have the MLS here. I had dinner with a Realtor, a real estate broker from Australia, just the night before last in Fiji, and she was talking about how they have no multiple listing service there. And if you want to see properties offered by another broker, you go to that broker. And so you don't have cohesive data. And in the US that is a very important thing. You have really good public records. You have Zillow, Trulia, realtor.com, all of the different county recorders, the multiple listing service that give you really good valuation perspectives on properties. In pretty much every country around the world, the data is just not good. There are all these, what they call off plan developments and you just have no idea if you're overpaying for a property or what the real value is of something. So there are so many things that make the United States a really special real estate market. Of course, the financing industry, so well developed here. Now that's, I know, funny to say given that we were ground zero for the mortgage crisis and the mortgage meltdown several years ago. But that's not what I mean. I just mean that access to financing, it's been subsidized by the government since the Great Depression. And hey, get your government subsidy. Don't you deserve it too? Right? If you're listening to this show, I'm sure you're not a socialist, you're probably not a Bernie Sanders fan and you don't get any handouts from the government. But you know, you do get a bit of a handout when you get a Fannie Mae or Freddie Mac loan subsidized by the government. And even if you don't take a direct loan from them, if you go to the secondary market in some of these private equity groups offering financing because they have to compete with Fannie and Freddie, the government sponsored entities, they have to be more competitive. So in a way you're still taking advantage of a subsidy. So pretty cool things. You know, the 30 year fixed rate mortgage is just not a phenomenon around the world. That's a mostly American phenomenon and it's a great thing so take advantage of it with your real estate investments. So just a couple comments about the event I attended. I saw Harry Dent speak there. He's been on the show several times. And I called my guest booker from Fiji and said, hey, let's book Harry Dent back on the show again. So we're going to have him coming up. We've got a bunch of other great shows and great guests. The first half of the event was basically life mastery and it was about mostly health. It was the first time in my life that I actually did a fast, a juice fast. And then it turned into kind of a semi fast where they picked out all of the thin people in the room. And I was in that group and they said, no, you have to eat, you don't get to fast completely. So they fed us these little meals where we got a little tiny piece of fish and a salad three times a day. That was breakfast, lunch and dinner. But it was really tasty. And when you get in the habit of eating, eating light and eating healthy, it's really good. It's just totally satisfying. It takes about two days to get into that groove. And since I had never fasted before and listen, I don't need to fast in the sense of weight, obviously, but I do need to fast in the sense of health occasionally. And if you look at pretty much every religious leader and religious book talks about fasting and the power of it and I'm gonna do, you know, I just made a commitment that every quarter on a quarterly basis, I'm gonna do a one day juice fast. I mean, I know some of you probably do three day and five day and even longer fasts than that, but for me, hey, that would be an accomplishment. So I'm giving myself that little thing. And it was really interesting to get off of coffee and sugar. I didn't have coffee for over, I think nine days on this trip. And that was pretty amazing. To kick the caffeine habit for over a week, to kick the sugar habit. I didn't have any added sugar of any kind or anything. So I would recommend that to everybody listening. I think we all should do that once in a while just to sort of reset our taste buds. That's what it did for me. It kind of reset my taste buds and kind of found I didn't really need that stuff as much as I thought I did. Unpleasant again for, for a day or two. But after that the craving just goes away. It was pretty enlightening really. And the mind gets a lot clearer. That's the other thing. Like a lot of these foods we eat create this sort of brain fog. At least I noticed that. And they said Tony Robbins was talking about how that would be one of the positive benefits you would notice is that the brain fog would clear a little bit. And I did notice that. So highly recommend that the second part was wealth mastery. And you know, it was pretty basic. I didn't learn a lot from it. It did not talk nearly enough about real estate. And when they did talk about real estate, they didn't talk about real estate in any real prudent way that most of us could use unless we wanted to make chasing down deals and skimming the MLS and making a thousand offers to find that diamond and rough that needle in a haystack property. And that's a full time job. I wasn't too impressed with any of that stuff there, but it was still interesting. And you know what you realize is that's just the level of the knowledge of most people in the world. It's just very elementary when it comes to finances. Fortunately, that is not you because you're listening to this show. Anyway, I'll talk more about this in upcoming times after I get home and have a chance to review my workbooks and my notes a little bit. But in either case, just wanted to share some of that with you. Check out jasonhartman.com for the latest and greatest properties we have. And be sure to check out hartmaneducation.com hartmaneducation.com for some of our courses. Feel free to connect with me on Voxer and ask questions that will be aired on the show. And that's jhart88 on Voxer V O xer. Just download the free app and let's get to the main part of our episode today, my interview on one of our Venture alliance members podcast. And that's Mr. Pat Donahoe. So here we go.

Morning everybody. This is Patrick Donahoe. Welcome to the Wealth Standard Radio. Man, you're in for a treat today. I know I say that sometimes quite often, but I mean it, I mean it today. So I so I have a special guest in the, in the office, in the flesh, Jason Hartman. Jason, you were on a couple a couple months ago, I think was back end of end of last year. But you have an event here that you're doing in Salt Lake on Saturday and, and you stop by, you stop by and hanging out.

Yeah. It's great to be here. Pat, I got to tell you, I am so impressed with your company and your office and your facilities. Wow. This place is amazing. It's, you know, it's good not to do everything virtually all the time and to actually go out and. And see things. And, you know, we. We all efficient and save our time. And so a lot of us are in our home office or in our commercial office, and we're not out seeing things. You know, I remember, like, in the old days, I used to go out and see people more, and now I just try to be more efficient. And so I'm doing a lot of stuff over Skype and with all the great tools we have. And you're super efficient and. Well, I don't know about that. Well, we'll see on that one. But no, it's. It's really great to meet your staff and your team and, you know, just see your operation. I'm very impressed. And. And you're so humble. Like, ridiculous. You know, here's. Here's Pat, folks, listeners, just so you know. Yeah, I make like, half a billion dollars a year, whatever, and I'm struggling. Yeah, that's not true. But. Yeah, but close.499 million a year. Just kidding.

No, it's. Yeah. I love. I love our office. I mean, it's kind of like there's a. There's an energy here that, you know, is really. I don't know, it energizes me. It's hard for me to, like, sit in my home office and do. Do stuff by myself. I love being. Love being in groups, but anyway, well, you're.

You're a people person, and you've got a great team of people. So it's. It' to come here, and, you know, I worked here most of the day yesterday, and I'm just kind of being Your office. Drop in today a little bit.

And you brought your. You brought your. Your Sidekick.

Well, yeah, I brought my laptop, but I brought my dog, too. And my dog is having fun exploring your office.

That was funny yesterday when she came in and just, like, took off and started running around the office. That was amazing.

She was nuts. I was so afraid she was gonna break something. Everybody, I was thinking, oh, my God, Pat's gonna kill me. And she didn't break any. Anything.

No, she did. Awesome. She's great. Well, amazing, amazing dog. Okay, so today we could. You and I can talk for probably eons, which is a curse. Which is a curse we have.

But let's give some value to your listeners, and let's talk about. Let's talk about disruption. I mean, we are at this inflection point in history, I believe, and you Know Pat, maybe everybody thought this before. Maybe everybody thought this back when the Steam engine was invented or when, you know, when they just. I guess this is not an invention, it's more of a discovery. Discovered how to make fire. Okay, certainly that's completely possible. But there are, we are at the convergence of so many technologies right now and attribute this mostly to the Internet and the network. And, and of course, you know the concept of the network by who's the person. Gosh, I get, that escapes me. Who invented the Ethernet? I get. Of course I know this. I can't just can't think of it right now.

The Ethernet.

Yeah. Which is Al Gore. No, it wasn't Al Gore. That was the Internet. Oh, I forgot about it. But actually when, you know, Al Gore invented global warming and then, and then when that didn't quite work out and there were too many skeptics, he invented the Internet. Joking of course. But yeah, Al Gore takes credit for a lot of stuff.

No kidding. No, but it's quite true. I can't remember. It was the open source idea was one of those things where, you know, I think it was like a, it was a, it was a mining company and they open, they gave kind of like their, the land that they owned and they opened everything up so that people, developers can go and they won some. They were like a million dollar prize, whatever. We have people all over the world taking the data from this mining company and showing like where, where.

Best place of mine.

Right?

Yeah, that's.

And that, and that idea, I mean look at who it's worked for. Like Salesforce has an open, you know, open back end where you can go in. There's a lot of other companies are saying like here it is, develop for me. Right?

App stores. Right. You know, when Apple opened their app store for the iPhone a long time ago, that was an amazing change. And I recently purchased a Tesla and I'm not, by the way, I should make the disclaimer. I'm not really necessarily a believer in the concept of the electric car, but I am totally a huge believer in the self driving car. So that's the reason I, I dropped 110 grand for that car. But the Tesla is about to open an app store. And so that car is really, it's called a computer on wheels. And so when I look at that screen in my car, in the console section of the car in the middle, there's an app store there that they are about to open. Wow.

I had no idea.

Start developing all kinds of third party apps for a Car and this is a totally new concept. And of course the self driving car is a giant revolution. I mean, I tell you folks, I don't think anybody has really come to grips with how big a deal the self driving car is. And it is around the corner. This is happening so quickly. I recently moved from the Socialist Republic of California to Arizona and I flew back to pick up my Tesla. And basically I want to say I drove back to Arizona with a car. But it drove you. It's amazing. I mean, going around windy roads through the mountainous area in the desert at 80, 85 miles an hour and the car is literally driving. I mean, it's freaky. It's hard to trust. Only three times now in driving that car have I taken the wheel away from the computer. It's, it's driven all the rest of the time. And it's an amazing time to be alive.

I don't know how I would mentally deal. I mean, and that's so, that's a great point because disruption, I mean disruption has been a part of human, you know, human existence.

Right?

It's, and there's all, there's obviously degrees of disruption, but it's always happening, it always will happen just because of what's driving human beings now.

The driving side of things happens pretty gradually. Before though.

Now it's like exponential in the exponential.

Time as Peter Diamandis says. And it's, it's this convergence of all the technologies with the concept of the network. And you know the, that saying from the Ethernet inventor was the value of a network increases by like the square of each node on the network. And each node is a person connected to the Internet. Right. And so like you said, the mining company that open sourced its mining operation and so many things where people are crowdsourcing investment capital, where they're crowdsourcing ideas, where they're crowdsourcing how to, you know, decode the genome. It's mind boggling. And if you want to read an incredible book, not directly on this subject, but sort of indirectly but very powerful. And she has a TED talk too. Jane McMonagle, who wrote Reality is Broken and it's about the gamification of everything. And Pat, I mean it is an amazing time to be alive. It's incredible.

But I was gonna, and I look at, you know, you Dr. You know, getting, being driven by, by your car.

And I put a chauffeur out of business. Business. Well, the idea, I didn't have a chauffeur.

As you were talking through that, I was thinking that and you've talked this on about this on your podcast. But when you were talking, I was like, I, I don't know how it would react if something was driving me because you're, you've been so conditioned to drive and be in control. Now I am a control freak. And that's the thing. And so as this disruptive technology becomes a part of society, I mean human beings right now, they don't like, some people like change, some people don't. But I think if you really want to be able to take advantage of what's coming down the pipe as far as society is concerned, whether it's business or any type of wealth building, you need to understand change and you need to be okay with change.

Yeah, you need to be, you really need to embrace change. You know, I mean, we can go so many directions with this. Do you want to talk a little bit about the self driving car? It's interesting because one of the predictions I have made and you know, I'm a real estate guy, okay, I help people invest in income properties nationwide really conservative approach, you know, we're all about income. If appreciation comes, it's the icing on the cake. But let me make a prediction on pricing and the valuation of real estate because this is hugely important for our economy. The impacts are so wide ranging. So the, the cardinal rule of real estate since the beginning of time, from the days of prehistoric humans living in caves, was location, location, location. And it still is the driving thing that drives real estate values. But if transportation becomes this sort of non issue, if, if the concept of a commute becomes compressed into it being sort of a meaningless thing that doesn't really impact you. Where you don't have to drive, where you can sleep while the car drives you, where you can work, you can literally do yoga while the car drives you. You know, you could do whatever, you could play with your dog, play with your kids. I'm sure people will drive around making love. Okay, there's all kinds of things that this means, right? So it's a giant impact. And in the past couple of decades there's been this new movement and resurgence in real estate markets around the country because America is really the, the founder of the concept of suburbia. Okay? In the post World War II baby boom generation, the suburbs became this very iconic American ideal. Levittown baby boomers coming back from the war, the two bedroom, not the three bedroom usually, but the two bedroom one bath house in the suburbs with a white picket fence. Maybe it was in Lakewood, California. Maybe it was Anywhere. America became the American dreams. And that's because of the romance built around the automobile in the 50s. And you know, fuel was cheap cars. America had the auto industry, you know, the world's auto industry. In fact, if you go to Cuba where progress stopped in 1959, it's like going back to, you know, 1959. Yeah, it's amazing the old car they have there that are still held together with bubble cum and duct tape and. But the interesting thing is my prediction is that there will be a renaissance in the other direction in the suburbs. Because living in the suburbs has its benefits, right? You know, you can have a yard and a dog and you know, it's kind of a nice environment in many ways. Now the three block radius around everybody's house still really matters. The school districts will still matter to those who have children, okay, definitely important. But you know, do you really need to live in an expensive area? If, if commuting is not an issue, why can't you live 45 minutes or an hour away from your employment and maybe your employment won't even be a commute. I mean for a lot of us it isn't anymore. We, we literally walk across the hallway to our home office. And so this is a big change, I'm telling you. I'm not exactly sure how it will play out. Nobody is, but it's a big deal. Real estate is the biggest asset class on planet earth, okay? And this matters. The self driving car matters. So a lot of things come into play here. Number one, what's known as packing density of cars on highways and freeways because the cars can be packed at a ratio of six times what they are now. Once they're self driving cars, once they're, well, not just self driving, but network together. Because when the cars start to communicate with each other, why can't they drive 90 or 100 miles an hour 2ft off each other's bumper, right? Because if one stops a mile ahead, all the cars will know to stop. Now this is all great until somebody hacks your car or God forbid that Microsoft makes the software because that would be a mess. I'm obviously an Apple fan, but, but the packing density matters. So that lessens the need for building new roads and highways. So much for Obama's shovel ready myth of the jobs, you know, that he promised eight years ago. Right? And so that, that's a big deal. The whole idea of the commute is compressed. That doesn't become meaningful anymore. You could live in low priced areas like Phoenix and if you love the beach and love the ocean. Your car on Friday evening at midnight you can get in your car and.

Wake up at the beach the next morning.

Yeah. Refreshed at 7am and you can go surfing, you can hang out at the beach. You know, maybe it's a self driving motorhome. It is a game changer. It's huge.

Well, I think looking you know again how things are going to play out, it's probably not going to be exactly how we, how we predict because you have human beings that are always behaving, reacting and a lot of it's irrational. So it's, it's one of those things where paying attention to this type of disruptive technology, whether it's the self driving car, whether it's network cars and whether it's other technology, it is gonna, it's gonna change the way that we live, it's gonna change the way that we invest, it's gonna change the way that we ourselves behave. But I think all the points that you've made are, are incredibly valuable. But so looking at, you know, I posed this question to you yesterday because you're the, you're the real estate guru. But looking at right now, there is a tremendous drive toward living in an urban area. Right. And I gave you.

I like that by the way. I like the mixed use idea. I love the walkable communities. Yeah. So I'm a fan of that.

But you made, but you make great points because you know a lot of what's driving that as a younger generation. But as the younger generation right now they're trying to be efficient. Right. Because they're starting out, they're trying to find their career, they're paying off of load of student loan debt, trying to be very, you know, cognizant of where money is coming and where money is going and but looking at as they pay off that debt, as they progress in their careers. You made a great point which is that behavior is going to change and what are they going to do next? And that's where suburbia, I mean they're having the convenience and I like this guy. I only live a few minutes from out of, out of town or out of the city. But I like that because I'm close to everything, it's convenient. Okay. If I need to go here, here, here, I can do that. But you made a great point which.

Is in a really expensive area. Okay. And so like take Southern California where I spent most of my life in the socialist republic. Okay. Love to bash California. I live in Scottsdale, Arizona now by the way, just so everybody knows, but most of my life paying taxes to the corrupt socialist government of California. And in, in that area, you know, when I lived in Orange County, California, I lived in Irvine and Newport beach, two areas there. And the cheap real estate was out in Riverside, San Bernardino, comparatively to the west. Right. And a lot of people had to commute. They, they would buy a house out in Riverside or San Bernardino counties and they would commute into Orange county or Los Angeles for jobs and they would spend their life on that freeway and it would, it would be terrible. Now that's, that's all going to change. Do you really need to have an expensive home in Newport beach when you can have a much less expensive home in Riverside? And that commute issue is largely gone now, the cost of energy is one of those considerations, but the cost of energy is plummeting. We'll see. This is a big deal. And I think it's going to put downward price pressure on expensive real estate that is based on location heavy valuations. And it's going to put upward price pressure on lower price real estate where land has historically been less expensive because it doesn't have location, location, location going for it.

So let me throw, let me throw maybe a couple other ideas or wrenches.

Wrenches that you throw a wrench in my theory.

Because so looking, looking at, you know, again, the improvement of technology, what people are doing, it's really the, it's, it's what is driving a person to do it, which is they want it, they want more with less, they want better, they want progress, they want, you know, the, the iPhone, 7 and 8 and 9 and 10 and I mean they want the new, new, new and for less, less cost. So if you look at, you know, real estate in general and, and specifically real estate prices, what are, what are some of the forces right now that are in motion that are driving, they're going to be driving down, whether it's construction prices, whether it's the commodities that go into homes, whether it goes to the energy. What are you, what are some of those forces which will affect real estate prices and maybe even affect rents eventually?

Yeah, great question. So we've got these conflicting forces going on. Technology is quite obviously deflationary, okay? It makes things less expensive and it makes them better. And we all know this. We don't have to. You know, my first cell phone cost $3200. I actually financed it as a 19 year old kid when I bought it and it weighed 14 pounds. Okay? And now you can buy a much Better cell phone, that does a lot more for a lot less, obviously. But the, the conflicting force with technology, the countervailing force is government and central banks. And so as, as great as all this technological innovation is, the governments and the central banks really all around the world are, are doing their best they can to screw it all up because they're, they create lots of inflationary pressure. And so the thing we don't understand is who will win. Which force is more powerful? Is it central banks and governments or is it technology? And I don't know the answer. Nobody does. It's impossible to predict. Nobody could predict this. Certainly Janet Yellen at the Federal Reserve doesn't know either. Nobody knows. But the way the government spends, as Ronald Reagan said it was great quote, he says to say that the government spends like a drunken sailor is an insult to drunken sailors.

So that's a good quote. So we've got those inflationary forces out there. Government spending is inflationary, no question. And then we've got the deflationary forces of technology and you know, in the cost of housing to directly attack that question.

I don't know.

You know, there's all this stuff about the 3D printed houses and yes, a few of them have been built, but they're kind of weird. The thing people don't understand is even if the construction becomes easier and faster to build the house, it still uses the commodity of land and it most definitely still uses the commodity of building materials. Something goes in the 3D printer, like a petroleum based product or wood that. Yeah, well, wood, 3D printed house. Yeah, tell me about that.

Well, well, it wouldn't be all wood, but certain wood can be assembled by a robot or it could be cut automatically by.

Well, that's not 3D printing.

Well, 3D printing, yeah, you can 3D print concrete, you can 3D print, you know, the petroleum based composite stuff. But yeah, still the assembly is going to be a lot more efficient.

No question about it.

You can't, you can't like create trees out of nothing.

It's not yet, but hey, look at, we created a meatball in a lab, okay? So who knows, who knows if we can create, you know, genetically engineered trees, of course, you know, grown out of nothing into something. So we'll see where this all goes. But that the house still takes materials. And the difference between robotic manufacturing and the specific robotic manufacturing called 3D printing is that 3D printing is what's known as additive manufacturing. So it's ideal for petroleum based products because the plastic genre of materials is Very good at additive. You know, where it adds ads, adds and builds it and adds to it and creates something like that. So houses still take building materials until the day when we live in a force field and maybe we come home and push a button or think a thought and our house appears as a force field around us and it's not really made of matter.

I never thought of that.

That's.

That's that.

I'm going way off.

Yeah, you're way off on that one. No, but that. But again, everything you're, Everything you're saying again, what is initiating that. And it's really that human driving force to get better, to get cheaper, to get more efficient. But it's fascinating because you do have that opposite force, which is government. Right. Or just the nature of economy. We've had this, you know, conditioned idea that we need growth every year. Growth, growth, growth, growth, growth. And if we don't have. And growth is all measured in increasing prices, which that doesn't. That is not the only way to measure growth. But in the end, that's what their initiative is, and that's what they're driving toward.

When you say they, you're talking about governments and central banks. Yeah, yeah, yeah. Well, they're. They have a target inflation rate dictated by what's called the Phillips curve, which is, you know, the thought that. And I'm not explaining this perfectly, but go to Wikipedia and look up Phillips Curve. But the idea is that the government wants to target, you know, 2 or 3% inflation because if they don't get that, then the economy doesn't grow properly and unemployment increases. But the thing I don't know that we should talk about another show because it's a long subject, is the whole concept of robotics and what that means to employment. I mean, this is giant. And folks, this is not. Here is the critical thing, listeners. This is closer than you think. This is not far off. I'm talking three to five years before you see huge impacts from what we're talking about. This is not 10, 15 years away, and it's not a quarter century away. It is right around the corner. And there's another big thing that we should also talk about in the future, and that's. I started about a year ago hosting a new show called the Longevity and Biohacking show, in addition to my popular real estate show called the Creating Wealth Show. But we are on the verge, I believe, of giant advances in life expectancy. And Pat, that has such big impact on the economy, because what happens to Social Security if people live 25, 30 years longer. Social Security was designed for people to.

Live 65, 67 years old.

Yeah. To like live four years after retirement. Okay. And then die, you know, die at.

69, not 20, not 25, not 30.

Yeah. And, and so we already are struggling with that problem. Look at Europe, which is an absolute disaster. I mean, Europe is a mess, China is a mess. For kind of the opposite side of that problem. Because they don't have enough, you know, because their one child policy is just going to ruin China. You're already seeing a little bit of that.

Well, they start, they've gotten to the second. They allow a second child now.

Yeah, I know, but it's too late. But it's. Yeah, yeah, yeah, it's, it's over. Game over. Huge impacts here. And so the question is, what does that mean for unemployment? What does it mean for government budgets? What does it mean for inflation and central banks and monetary policy? The impacts are ginormous. We should tackle that along with robotics on another episode. And it's more of.

I think the reason why we like talking about this is, is as you look, as you look toward the future first, as I said before, it's not gonna ha. It's not gonna be the exact, you know, description that we think it's gonna be. Right. There's always gonna be different changes in its timeframes and so forth.

Right.

I, you and I agree on a lot of things. And I agree on that. I agree it's gonna be coming very quickly because the speed at which we're accelerating toward that is, is, is exponential. And so, but I always look at, okay, why is that going to happen? And what does that mean for me? What does that mean for business? What does that mean for opportunity? And if I think more people would start to ask themselves that, those questions now, they're going to read differently. They're going to, you know, pay attention to certain things differently. And I think that's very powerful.

You bring a different self to the environment. And when you start thinking about all of these disruptive technologies, you think, how does that impact my business? One of the things, you know, one of my very early mentors, fortunately, was Earl Nightingale, along with Jim Rohn, Dennis Waitley, Zig Ziglar. Those guys changed my life at 17 years old. And one of the things Earl Nightingale used to talk about is he used to say.

The thing you've got to do is every day ask yourself how your business, your company, your profession will be done differently in five years or 10 years. And now that Old Earl Nightingale thing. And Earl Nightingale died back in 1989. Okay, so this is, you know, old thinking. You know, he was popular in what, the 60s, the 70s, 50s, 50s even. Yeah, it was way before my time, I'm glad to say. But, you know, I, I still loved his work and still do. And now that's just massively compressed and the impact is massively increased. So it's not a question of how will this impact your, your world in 10 years, it's how will it impact it next year and the year after. And the impact is so much greater. I mean, this is not a linear change anymore. It is exponential times, and we've got to be prepared for that. And so many people are still asking the question, you know, who moved my cheese, right? As the famous. I had Ken Blanchard on my show. And so, you know, that, that, that cheese is getting moved around a lot faster now.

Well, I think that's one of the human. I mean, one of the deficiencies I think we have as humans is we come to a conclusion and we are so set in our ways and unwilling to change. It's kind of the ego side of things. So I would say, you know, what I've tried to do lately and what I try to observe is not coming to conclusions, not saying this is absolute, this is absolute, this is absolute, is just saying, okay, well, is it absolute and, or could it change? And I think if people thought that way, they'd have much less disappointment. Because I think people, when they come to certain conclusions and they expect things to be a certain way and it doesn't happen, it's like life, life is over.

It's never.

There's hardly been any type of absolutes that have, that have occurred in, throughout human history. So it's more of. Because of where we're at in the state of our society, it's paying attention, it's looking for the opportunities, it's networking, it's building on that momentum and not getting stuck in your ways.

No question about it. But I don't think we should beat ourselves up too much for being that way, because if you think about it, it served us for all time until really the last couple of decades when the acceleration of change happened so much faster. Because in the old days, thinking in that sort of consistent linear way was the way the world worked, and that was our survival skill back then. But now, because things are changing so quickly, we need a new set of survival skills and we need to not be stuck to the past. And so it's a, It's A whole new world.

Well, that's, I mean, that's an unders. That's an understatement.

That's the understatement of the, the. The century. Maybe. But, you know, maybe we'll wrap this up with a great Yogi Berra quote. And, you know, he had such funny, awesomely insightful quotes. And the one one I like a lot is he said, the future ain't what it used to be.

That's short, sweet, to the point. But you're right. And I, and I, I don't know, I love, I love reading. I love seeing what people are thinking. But maybe as we end, what are, what are some ways in which you keep up with, with a lot of this, where, what are books, blogs, people you follow that where you try to get. You keep plugged in to. Because you're, you obviously you have multiple podcasts, you've. You're well networked, you're well plugged in. What are some of kind of like the top books or the top blogs or feeds or sites that you're consistently looking at.

Yes. So I think one of the most important things is that you, you want to really consciously choose your relationships, your friendships, and that's one of the reasons mastermind groups are so powerful. You know, good old Napoleon Hill, back in, what, the 20s or 30s of 1900, by the way. I guess I better say that, you know, he talked about the power of the mastermind group. And so you want to hang out with people who are maybe thinking more broadly than you, doing more than you, earning more than you.

Don't be the smartest guy in the room. You know, constantly challenge yourself to be one of the dumbest people in the room because that means you're in a really powerful room.

You're gonna get stretched.

Yeah. And you're gonna get stretched. So I'd say that's the first thing listening to. You know, good podcasts are very important, of course. And books, gosh. I mean, the era of books is changing so much and the era of publishing is changing so much. You know, I love great books. One that I just finished. Gosh, I gotta look it up on audible to get you the exact title. This was an audio book I just did. And it. I'll get it in a minute.

Well, you. And that's. And I remember one of the first times we, we had a pretty lengthy discussion. We, we were comparing our, our audible libraries because that's sitting down and reading a book that's. That is difficult for, for me, me, it's multitasking. But I find a huge amount of value in being able to be active while listening to books. And that's why audible, you know, on 2 or 3x speed is as powerful.

I like to, to read too, but you know, it's reading is not a portable activity. Listening to audio, once you have like.

Your network self driving cars, then you know that then you can read again. You can read again.

The car will still bump around until it levitates and that's probably coming too. When, when is the flying car gonna be here? You know, I remember watching the Jetsons and that just hasn't happened yet. So this book, really interesting, it's called Originals How Non Conformists Move the World. And, and it's by Adam Grant. Really interesting book. Zero to One by Peter Thiel was a recent one. There are just so many great books out there. But the problem again with books and I mean this industry has obviously changed so much is if it goes through the traditional publishing channels and not being self published by the time you're getting that book, it's two years old, if not older. So in a world of.

That's why podcasting, that's why podcasting is immediate. Right? Podcasting, it's top of mind, tip of tongue. It's, it's the current events, it's what's going on right now.

Yeah.

What are. So do you have any, any podcasts that you, that you like listening to that kind of keep you plugged in, keep you engaged, keep you stimulated intellectually besides your own?

Yeah, yeah, well, I like all my own podcasts quite well. I love that I get to ask the questions of all these echoes experts I interview. And so I've got 21 different shows.

Oh my gosh, you can just search.

My name on itunes or whatever podcast platform, find those. So a little shameless self promotion there. But I like your podcast because you're a forward thinker, obviously, and I know your listeners can tell that. And I, I like just some of the news sources, you know, like Newser is a great little news app. I like a really quick two paragraph news. Business Insider is pretty good too, but there's a lot of clickbait out there too, which frankly the title is so compelling, but then the article itself is less compelling. I'm not criticizing Business Insider, I just thought of that concept, but they do it too.

Do you listen to the forward thinking? The forward thinking, I was gonna mention that one.

That would. Yeah, FWD thinking podcast. I like that one too because they talk about technology and stuff yeah, we've never even talked about that before, have we? But we.

Topic topic for next topic for next month.

That's a good podcast. I like that one. Yeah.

But I. I think.

Yeah.

And there's a lot out there, and sometimes you'll gravitate toward one person than another, but there are so many out there. It's just more of finding, finding, you know, what really keeps you engaged, keeps you interested. Because in the end, I think technology is one of those things that everybody needs to start paying attention to because it could totally throw a industry out of balance. It can throw your career out of balance. It could throw your investing out of balance. So I would say getting plugged into that, the disruption that's going to occur is definitely going to change the world. And I'm, I'm excited. I'm optimistic that it's going to, you know, if it's going to improve, it's going to improve life. Despite a lot of the naysayers and the doomsdayers that are out there that are taking, you know, a lot of what's going on to the negative extreme and saying how the world is going to implode. But I never like to look at that.

Well, look, it's a mix, mixed bag. I mean, you know, everything is a mixed bag. There are always people that win and lose every time things change. But overall, I agree with you, Pat. I think it's an amazing time to be alive. That's kind of my quote for the last couple of years. It's an amazing time to be alive. Just keep up with it, everybody, and I think you'll experience some amazing things that you just never even dreamed possible before. So it was great talking with you today, dude.

Likewise. We could go on and on and on about this. So we'll do. We'll definitely do it again. All right, Jason, thank you. Thanks for being on the show today.

Thanks for having me and happy investing and embracing change.

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