Transcript

🔴 BREAKING NEWS!! Economic Slowdown Could Be Ahead For The U.S., Not Robust Growth

From GLOBAL NEWS PODCAST · Episode page · Watch on YouTube

· 1 h 9 min · 10,761 words · 63 timestamped sections

This is the full, timestamped transcript of "🔴 BREAKING NEWS!! Economic Slowdown Could Be Ahead For The U.S., Not Robust Growth", an episode of GLOBAL NEWS PODCAST published September 24, 2020 (1 h 9 min, about 10,761 words). It mentions 16 people, works and ideas, including Federal Reserve, Peter Schiff, Corporate Tax, US Treasury, Donald Trump.

What this episode is about

The discussion focuses on the potential for an economic slowdown in the U.S., countering the calls from current and former Treasury Secretaries for increased government stimulus despite rising deficits. The speaker critically examines the emphasis on stimulating the economy and borrowing, likening the role of the Secretary of the Treasury to that of a "Secretary of the Debt" due to the unsustainable level of national debt.

Key takeaways

  • The Treasury's new title? Secretary of Debt - the real con job in plain sight.
  • When debt gets fancier than a jazz ensemble, stimulus becomes the improvised solo no one signed up for.
  • Promising to fix debt only in crises? That's like waiting for the smoke alarm to learn about fire safety.
  • Fed and Treasury on speed dial? Independence is now just a worn-out notion given a backseat ride.
  • Red flags raised when 'strongest economy' meets biggest deficits—talk about a surprising twist in economic storytelling!

Who speaks in this episode?

What is discussed, and when

  1. – 10:00: Federal Reserve, US Treasury, Donald Trump, Steven Mnuchin
  2. – 20:00: Jerome Powell, Fox Business, Liz Clayman
  3. – 30:00: Education, ExpressVPN
  4. – 40:00: Medicare Tax, Federal Reserve, Social Security Tax, Education
  5. – 50:00: Corporate Tax, Donald Trump
  6. – 1:00:00: Federal Reserve, 1031 Exchange, Donald Trump
  7. – 1:08:41: Federal Reserve

Notable quotes from "🔴 BREAKING NEWS!! Economic Slowdown Could Be Ahead For The U.S., Not Robust Growth"

  • Working together because all they're going to do is damage the whole idea behind an independent federal reserve is that the federal reserve is not working hand in glove with the u.s treasury right.
    about Federal Reserve · at
  • They're like partners in crime now ripping off the american public where the fed is actually acting as a branch of the treasury department this is what we don't want but in any event during this interview on cnbc.
    about US Treasury · at
  • Talking of course about the fed about gold price is now looking very strong we're above 1950 on the price of gold i think we're headed much higher as the dollar is headed.
    about Gold · at
  • About inflation this is why inflation is his biggest concern and of course the biggest concern of the current fed chairman is that there's not enough inflation well he's about to achieve his goal beyond his wildest dreams.
    about Jerome Powell · at
  • Us dollar denominated debt right which is why i am you know constantly telling people you got to get out of dollars you got to get into currencies that the federal reserve can't tax you got to own real assets stocks outside the united.
    about Peter Schiff · at
  • Have a relationship to what you pay in because now we're going to have this huge increase in the taxes that people pay without any increase at all in the benefits that they're supposedly going to be receiving.
    about Social Security Tax · at
  • Of what a company makes and the government gets 40 percent biden's plan would increase that to about 68 going to the government and that's the federal government right that's because the corporate rate goes up.
    about Corporate Tax · at
  • Real estate investors like donald trump and the trump family and many others is you can defer the taxes on the capital gains on real estate almost indefinitely in fact a lot of people defer the taxes until.
    about 1031 Exchange · at

Who and what is mentioned in this episode?

People

  • Peter Schiff — Person · Host / primary commentator · 1 mention · first at
    He drives the episode’s argument: Treasury/Fed coordination, deficit denial, inflation risk, and a detailed critique of Biden’s tax proposals while promoting gold and Puerto Rico relocation.
  • Donald Trump — Person · Referenced political figure / comparative foil · 4 mentions · first at
    Schiff contrasts Trump's claims of a strong economy with rising deficits, and cites Trump-family real estate use of 1031 exchanges as an example affected by Biden’s proposed changes.
    Well they weren't worried about the debt when the economy was supposedly strong in fact donald trump was out there bragging about the fact that we had the strongest economy in the history of america not only was it the strongest economy in.
  • Steven Mnuchin — Person · Referenced official / subject of critique · 2 mentions · first at
    Used as an example of Treasury leadership arguing for stimulus and dismissing deficit concerns; Schiff criticizes his coordination with the Fed and role in expanding deficits under Trump.
    The minutian interview yesterday and of course he's asked about the fed and he mentions that he's talking on the phone to fed chairman powell every single day i mean it'll be illegal these guys shouldn't even be allowed to talk there.
  • Jerome Powell — Person · Referenced official / subject of critique · 2 mentions · first at
    As Fed Chair, Powell is portrayed as pursuing higher inflation and coordinating closely with Treasury; Schiff suggests the public will suffer from the resulting inflation.
  • Jack Lew — Person · Referenced former official · 1 mention · first at
    Presented as reinforcing Mnuchin’s message that deficits should not be a concern during economic weakness, supporting Schiff’s critique of bipartisan deficit denial.
    Heard jack lew just like an hour ago today on cnbc he was a former secretary of the treasury and he's saying the same thing right that now is not the time to be worried about the deficits.
  • Liz Clayman — Person · Referenced media host · 1 mention · first at
    Mentioned as the host who regularly invites Schiff; her show is the venue for his upcoming discussion about the Fed and gold.
    Speaking the truth on fox business tomorrow i'll be on the claiming countdown with my good friend liz clayman so make sure and try to watch live and support liz and her show she's one of the few people.

Companies & orgs

  • Federal Reserve — Company · Core institution / central topic of critique · 8 mentions · first at
    Schiff argues the Fed is enabling deficit spending by monetizing debt, coordinating improperly with Treasury, and intentionally pursuing higher inflation—driving a future dollar/debt crisis.
  • US Treasury — Company · Core institution in deficit/monetization critique · 2 mentions · first at
    Schiff argues Treasury is effectively a 'debt' operation and is improperly intertwined with the Fed, undermining central bank independence and enabling debt expansion.
  • Fox Business — Company · Media outlet for upcoming appearance · 1 mention · first at
    Schiff announces he will appear on Fox Business to discuss the Fed and gold, indicating cross-media amplification of his views.
    Now before i forget too i will be speaking the truth on fox business tomorrow i'll be on the claiming countdown with my good friend liz clayman so make sure and try to watch live and support liz and her show she's.

Products & tech

  • Gold — Product · Investment hedge / recommended asset · 1 mention · first at
    Schiff highlights rising gold prices and recommends owning physical gold as protection against dollar weakness and inflation driven by Fed policy.

Concepts & topics

  • Corporate Tax — Concept · Core policy topic within tax critique · 5 mentions · first at
    Schiff emphasizes Biden’s proposed corporate rate increase and argues combined corporate + shareholder taxes would amount to de facto nationalization via ~68–75% effective rates.
  • Social Security Tax — Concept · Tax component in Biden-plan critique · 2 mentions · first at
    Schiff claims Biden would apply Social Security payroll taxes to dividends/capital gains and beyond current wage caps, increasing marginal rates without increasing benefits.
  • 1031 Exchange — Concept · Tax mechanism discussed in policy critique · 1 mention · first at
    Schiff argues Biden’s plan to eliminate 1031 exchanges would trigger realization of deferred gains, increase stress in leveraged real estate markets, and worsen COVID-hit commercial real estate.
  • Education — Concept · Policy area / spending target in critique · 9 mentions · first at
    Cited as a major destination of proposed federal spending; Schiff argues government involvement drives higher costs and lower quality versus market provision.
    As much as he's proposing it's probably going to be worse and the vast majority of the spending is concentrated on education and health care i mean this is where the federal government has already been diverting.
  • Medicare Tax — Concept · Tax component in capital gains discussion · 3 mentions · first at
    Schiff explains the existing 3.8% Medicare surtax on investment income (linked to Obamacare) and uses it as a baseline for Biden’s proposed further increases.
    Obama raised it because that extra 3.8 was the medicare right people call that the obamacare tax in order to help pay for obamacare they said okay we're going to take that.

Sponsors

  • ExpressVPN — Company · Sponsor / promoted product · 6 mentions · first at
    Schiff reads ad copy promoting ExpressVPN for privacy and access; includes a special link offer used twice in the episode.
    It is the fastest and most trusted vpn on the market it's rated number one by cnet wired the verge and more so protect your online activity today with the vpn that i trust to secure my privacy visit.

Full transcript with timestamps

today's episode of the peter schiff show podcast is sponsored by expressvpn expressvpn was the first official sponsor for the peter shiff show podcast we have added a few some more are on the way but i want to thank expressvpn for supporting the peter schiff show podcast you probably don't think much about internet privacy on your own home network but expressvpn will secure your privacy and protect your information visit expressvpn.com gold and you can get an extra three months free on your one year subscription package well i want to start off the podcast though by talking about what none of the politicians want to talk about none of the secretaries of the treasury want to talk about either the current or the prior because i was watching on cnbc on friday and steven mnuchin the current secretary of the treasury was talking about why we need more economic stimulus and why now is not the time

to worry about the deficits and then i heard jack lew uh just like an hour ago today on cnbc he was a former secretary of the treasury and he's saying the same thing right that now is not the time to be worried about the deficits we need to stimulate the economy and the government needs to spend more money and we need to borrow the money and you know the economy has been weakened by covid we have all these unemployed people we can't afford to uh worry about the deficit or do anything about the deficit now now first of all you know it's funny that we even have a secretary of the treasury because there's nothing in the treasury the treasury is empty right it really should be the secretary of the debt because that's all we have we have a gigantic pile of debt and really what the job of the secretary of the debt is is to make the debt bigger and to make sure that the people lending us the money

don't stop right so it's really a giant con job where you have to go out there and enable debt right you got to sell the world on the idea of buying our debt although at this point they've kind of given up on that and they just turned the whole thing over to the fed that's why these guys are working hand-in-hand in fact when i was listening to the minutian interview yesterday and of course he's asked about the fed and he mentions that he's talking on the phone to fed chairman powell every single day i mean it'll be illegal these guys shouldn't even be allowed to talk there should be some kind of chinese wall between the secretary of the treasury and the chair of the fed i mean we don't want these guys working together because all they're going to do is damage the whole idea behind an independent federal reserve is that the federal reserve is not working hand in glove with the u.s treasury

right the the idea was they didn't want the u.s government to have its hands on the printing presses i mean apart from the fact that constitutionally that they're not authorized to do it at least when the federal reserve was first created over 100 years ago nobody at that time would have ever said that we should allow congress to just print money because they would do it and they would just spend it so we had an independent federal reserve that was you know allowed to create money but not to monetize government debt and government spending you want to have some type of buffer zone uh between government you know congress has spending the money and the federal reserve that's creating it uh but when you have these guys working together they're on the phone constantly they're like partners in crime now ripping off the american public where the fed is actually acting as a branch of the treasury department

this is what we don't want but in any event during this interview on cnbc he's questioned right whoever was interviewing minutian on cnbc said well what about the debt aren't you you know are we worried about all this debt that we're running up here and that's when he comes back with the well now is not the time to worry about the debt we can't worry about the debt when the economy is weak well they weren't worried about the debt when the economy was supposedly strong in fact donald trump was out there bragging about the fact that we had the strongest economy in the history of america not only was it the strongest economy in the history of america it was the strongest economy in the history of the world yet when we had the strongest economy or when they were telling us that we had the strongest economy in the history of the world were we worried about the debt then no did we do anything about the debt then

no well actually yes we did do something about the debt we made it bigger what did donald trump do under the guidance of the secretary of the debt steven mnuchin what did he do he increased government spending and cut taxes so in this great economy in the greatest economy ever we took the greatest deficits ever and made them even bigger so clearly steven mnuchin does not think that the time to deal with the debt is when the economy is strong now he also says that you don't want to deal with the debt when the economy is weak well if you're not going to deal with the debt when the economy is weak and you're not going to deal with the debt when the economy is strong well then when are you going to deal with the debt well the answer is never although it's not actually never because you know when they're going to deal with the debt when it's a crisis that's when they're going to deal with the debt

but then you're not really dealing with it then you're just kind of responding to it you're just trying to survive the crisis and your options of course are severely limited i mean by the time it's a crisis right you've lost the ability uh to do things that might uh prevent it from getting that bad you know it's kind of like somebody who's been smoking you know two packs of cigarettes a day for their entire life and then the doctor finally tells them all right you got lung cancer and then they get the diagnosis they got lung cancer and then they quit smoking i mean what's the point i mean you might as well keep smoking right because by the time you get lung cancer i mean it's too late you're done right so the time to quit smoking is long before you get lung cancer by the time you get cancer it doesn't matter about quitting smoking and that's the same thing with the debt the time to worry about the debt

is before it turns into a crisis except there is no political motivation for doing that right because when times are bad right they definitely don't want to deal with the debt then like now right you have unemployed people oh we got to help them the government has to help everybody we can't just do nothing so nobody wants to be uh you know the grinch that doesn't want to help people right a greedy old you know scrooge uh so everybody wants to prove how generous they are with other people's money and so they run up the debt and it becomes a bidding war especially during an election i mean that's the worst time to have a recession is in an election year right because then you're backing up the truck with all these empty promises i mean nobody wants to be left out i mean that's the problem now in fact today the republicans now have come back to the the stimulus table and they're offering up 1.5 trillion

remember they they wanted one trillion dollars in stimulus and the democrats wanted 3 trillion and so it's a stalemate but ultimately it's the democrats who are going to win because the republicans already lost the minute they bought into the argument that printing a trillion dollars and spending it is a stimulus it's not it's a sedative we shouldn't print any money and spend it but you've lost the argument the minute you concede the debate and you're just arguing over the size of the stimulus because if you think a trillion dollar stimulus is good why isn't a three trillion dollar stimulus better in fact you're just stingy you're greedy you don't care about people that's why you only want to print and spend a trillion whereas the democrats really care they care three times as much because they want to print triple the amount of money and give it out so the republicans though have come back to the

bargaining table and they've moved up to a trillion and a half and the democrats are like no keep on bidding against yourselves the debt republicans are going to go higher and higher and higher until the democrats finally take credit for getting a much bigger stimulus but we know the stimulus is going to get passed the closer we get to the election the more pressure the republicans will feel to concede the argument and to enable the stimulus very few republicans will have the integrity to hold out so nobody wants to deal with the deficit when times are bad but it's just as bad when times are good nobody wants to be the party pooper right when the party is raging nobody wants to take away the punch bowl by saying okay let's deal with the deficit because then you end the party right you start raising taxes you start cutting government spending you start popping bubbles nobody wants to do that

nobody wants to be that guy so when times are are are bad right everybody wants to you know fill up the punch bowl or spike it with uh more alcohol and when times are great nobody wants to be the guy to take it away so we never get to deal with a deficit until of course we are forced to because it's a crisis and and that is where we're headed there's no doubt in my mind that a debt crisis a u.s dollar crisis is coming and the important thing to do is not only recognize that it's coming and understand why it's coming but to do something to protect yourself and to actually profit as other people are suffering that doesn't mean i am looking forward to other people's suffering or that i will derive any form of pleasure from the fact that people are suffering i wish that people didn't have to suffer i wish that our leaders uh could have done the right thing instead of doing the wrong thing but

just because i feel badly that other people are going to suffer doesn't mean i want to join them in their misery if i can avoid suffering personally well i'm going to do it and if i can help other people avoid it well i'm going to try my best to do that too and if we can actually profit from it well why not i mean i'd rather profit from it than lose from it i mean since there's nothing i can do to stop the train wreck at least i can get off the train at least i could do something about the things that i can control right you have to recognize the things that you can't control and then the things that you can and and then focus on the things you can control i mean i want to make sure that i am warning people i want people to understand what's going to happen and why it's going to happen because then more people may uh you know take part in in in pushing the nation towards constructive solutions that will

actually work so i want to do that i want to get the truth out there and that's why i'm constantly encouraging the people that listen to my podcast to tell other people about it so that more and more people will get to hear the truth and understand it and then they can start spreading the truth but also i want to uh try to you know preserve the wealth of as many fellow americans as i possibly can now before i forget too i will be speaking the truth on fox business tomorrow i'll be on uh the claiming countdown with my good friend liz clayman so um make sure and try to watch live and support uh liz and her show she's one of the few people on the networks that actually has me on with some type of you know regular uh frequency so i will be on talking of course about the fed about gold gold price is now looking very very strong we're above 1950 on the price of gold i think we're headed much much higher as

the dollar is headed a lot lower in fact we did get some economic news that came out today i mean probably not a lot of discussion of the economic news the more important pieces were the induction production numbers that came out at 9 15 and this was a weaker than expected report even though there was a bit of an upward revision to the july number originally reported at up three percent was revised to up 3.5 but the august number really plunged the consensus was for up 1.2 and we barely increased it was 0.4 percent increase for august and capacity utilization is all the way down to 71.4 they were looking at 71.6 and manufacturing output was also revised up a bit for july from 3.4 to 3.9 but the consensus for august was a 1.9 percent increase and instead the increase was just one percent so much weaker on the industrial production numbers but i thought the real bad news uh that nobody really even reports is bad news

was the import export prices where we saw big increases particularly in the imports there were increases in exports uh and you know export prices going up i guess is a good thing for us because you know that's the money we're being paid right so from a trade relationship you want the price of the stuff you're exporting to go up because you're earning more right that's what you're selling what you don't want is the price of the stuff that you're buying to go up and that's what really happened to americans not only in the month of august but particularly in the month of july see the july import price increase for the month was originally reported at up 0.7 right and the consensus was for another increase in august of up 0.5 what happened was the july number that increase was revised up to 1.2 percent remember this is just a monthly number 1.2 percent increase in import prices in the month

of july that was followed up by a 0.9 increase in prices for the month of august so you average those two together that's slightly more than one percent increase per month per month you annualize that number right that rate you're talking about 13 increase in import prices now the fed is talking about we want to have an average rate of inflation of 2 percent well we're going to be way above 2 percent if we have a 13 year-over-year increase in uh import prices now right now we don't in fact if you look at the year-over-year number they're actually down right it's down 1.4 you know which is an improvement because the way they they estimated it last month the year of the year was down 3.3 so they revised that to down 2.8 and now we're down 1.4 so we're turning around fast and i grant it and i will concede that we did have a big drop in import prices associated with the initial covet 19 collapse and now we are

rebounding from that but how does anybody know at this early stage what we are now beginning i mean are we just snapping back to where we were is are these two months just kind of one-off anomalies right that are just happening because we're recovering from the big drop or is this the beginning of a trend that is going to continue nobody can say for sure all the fed knows is they want more inflation and they couldn't give a damn and so they just keep on printing money and they keep interest rates down but what if this does continue what if we do have this for another 10 months what if we do have a 13 increase in import prices now yes that's not the cpi but a lot of what's in the cpi is imported a lot of what americans buy we have to import from other countries so when import prices are going up you know that is going to have severe implications for american consumers who in many cases have no choice but to

buy imports because we don't make uh you know alternatives domestically but of course if import prices are rising to the extent that there is a domestic substitute well you know those prices are going to rise too right because it's the imports that's the competition that's keeping them in check and so if import prices are going up well the domestic stuff's going to go up too and of course a lot of the domestically produced goods and services you know require imported uh components so to the extent that something you're getting domestically relies on imports well they're going to pass on those higher costs to you in the form of higher prices so you can see all of this evidence of inflation again i talked about this on my last podcast this is why alan greenspan is worried about inflation this is why inflation is his biggest concern and of course the biggest concern of the current fed chairman is that there's not

enough inflation well he's about uh to achieve uh uh his goal uh beyond his wildest dreams of success with the amount of inflation that he's gonna have now i don't know how many americans are gonna celebrate this or want to thank jerome powell uh for this big victory over uh low inflation right because we're not even fighting deflation right now the fed is just fighting inflation that is too low the fed wants to save uh americans from having to suffer the fate of a small annual increase in their cost of living and of course when you're broke when you're living paycheck to paycheck any increase in the cost of living is a negative and what the fed is saying is the increase that you're currently enduring is not enough pain that in order to grow the economy the consumer has to suffer even more pain and that is the fed's goal and that is one of the only goals that the fed is going to achieve and

that is going to be turning up the heat on the average american and making them suffer a lot more pain when they go to uh spend their you know diminishing paychecks but before i get into some of the real pain that presidential candidate joe biden wants to inflict on upper income americans which of course is going to trickle down to everybody else i want to uh quickly say a little bit about our sponsor for today's podcast expressvpn expressvpn make sure that your internet service provider can't see what websites you visit instead your internet connection is rerouted through express vpn secure servers each express vpn server has an independent id address that's shared among thousands of users that means everything you do is anonymized and can't be traced back to you expressvpn also encrypts 100 of your data with best-in-class encryption so your information is always protected use the internet with confidence from

your computer tablet smartphone expressvpn has you covered every single day with every device simply tap one button and you're protected i've got that little icon on my own laptop all the time i'm not always using it but a lot of times i do and a lot of times what happens is there's some content that i can't access because whatever reason uh my location is restricted and so you can fire that thing up and you can fool the provider into believing uh that you're you're accessing the information from a location where it is authorized and then you get access to it does it work all the time uh but it works uh some of the time and when it does i'm glad i've got the express epm it is the fastest and most trusted vpn on the market it's rated number one by cnet wired the verge and more so protect your online activity today with the vpn that i trust to secure my privacy visit my special link at expressvpn

gold and you can get an extra three months free on a one year package that's expressvpn.com e-x-p-r-e-s-s-vpn.com expressvpn.com gold to learn more now there is nothing golden about the joe biden tax plan what he is proposing and i have spoken about this in the past but it's a good time to do it again since he has really i think unveiled this tax plan tax and spending plan and it is in the news quite a bit and nobody is really putting it in its proper perspective so i'm about to do that now and so i really wish that somebody on the trump team would listen to this part of my podcast because this really needs to be exposed i mean this is where biden is actually very vulnerable to the extent that americans even care about this i mean there could be some americans that have no problem with what i'm about to say that's the sad reality but there could still be a lot of americans that have some sense of

morality that that still have an idea about the difference between white and wrong and maybe if they actually had these numbers presented to them the way i'm going to do it now maybe it could make a difference in this presidential race so uh listen up anybody who's uh affiliated with the trump campaign and give him some ideas uh from uh from this podcast in my going over the biden plan and of course first of all the big part about the plan is spending a lot more money trillions and trillions of dollars of additional spending and of course as much as he's proposing it's probably going to be worse and the vast majority of the spending is concentrated on education and health care i mean this is where the federal government has already been diverting so much resources education and health care if government spending on education and health care solve the problems in education and health care it would have already been

solved i mean we are spending so much money in these areas and every democratic politician even republicans promises to solve the problem right our health care crisis our education crisis to solve the problem by spending more money nobody realizes that the problem is a direct consequence of all the government spending look at the most overpriced services available today that's education and health care why are education and health care so expensive because the government is so involved the government is subsidizing these services the government is diverting huge amounts of resources into these services this is not the free market right if you look at the products and services that are delivered by the free market you don't see this you don't see prices rising at this rate you don't see how you have a crisis of affordability where the government has to come to the rescue uh with more spending it's not a

coincidence that the areas of the economy in which the government is most involved and spends the most money is where prices are the most out of control and so the more the government is involved in health care and education the lower the quality of our health care and education will be and the more expensive the cost of providing it will be so you know there's nothing uh dramatic about a democrat promising to throw more taxpayer money uh down the government twin rat holes of education and health care not that i don't think education and health care are important they are important they're too important to turn over to government anything that's important needs to be done by the private sector because if you want it done right it's got to be done by the private sector i mean who has got a better shot of providing you with quality services at an affordable price a private entrepreneur who's trying to

make a profit and therefore he needs to keep his costs low and who is in competition with other private entrepreneurs who also want to make a profit but who also have to keep their costs low and their quality high that's what's going to get you the health care that you want or the education that you want for your kids or for yourself a vibrant free market economy where you have all sorts of entrepreneurs competing with one another to give you the highest quality at the lowest cost does anybody think you're going to get high quality and low cost from the government if that's what you think go spend some time at the department of motor vehicles spend some time at the u.s post office right that's government in action no one gives a damn who cares they i mean they don't have to win your business they've got your business right they've got you by the balls you got no place to go uh a a free market entrepreneur

right the motto is the customer is always right well when it comes to the government is who gives a damn about the customer you know because they don't care if they have any customers or not they're going to take your money whether you patronize their services or not and there's no negative consequences if you get bad education you get bad health care doesn't matter right if you know if there's schools private sector schools that are not delivering quality education they're going to lose all their students they're not going to have any more customers if you've got private health care that's no good no one's going to buy it if you're stuck in a lousy government school well you're stuck there there's nothing you can do about it the government doesn't care the teachers don't care the unions don't care the administrators don't care they're not there for the kids they're there to enrich themselves the

kids are you know are just the means to enhance they don't give a damn but in the free market you have a private school they have to care about the kids if they don't care about the kids they're out of business because their their their customers aren't stuck there they're free to choose uh a a better product a less expensive product a product that has a higher quality of services but you don't get any of that from the government so biden's plan to waste more money on inefficient low quality high cost government uh health care government education is just you know more good money after bad it's not even good money it's bad money after bad money but what i want to focus on for the remainder of this podcast is not the the money that biden wants to spend but how he intends to collect it how he wants to pay for it now of course biden is making the pledge that nobody who makes under four hundred thousand dollars

will pay higher taxes right very courageous of joe biden to risk losing the votes of households who make more than four hundred thousand dollars right i mean doesn't take a lot of political guts to say i'm gonna tax everybody who makes over four hundred thousand dollars because very few americans make over four hundred thousand dollars so you're not really alienating many of your voters right and of course uh biden and everybody in the democratic camp wants to pretend that these taxes on the rich are paid by the rich the rich may write the checks right but a lot of the money comes from the middle class and the poor they just don't pay it directly they pay it indirectly but what biden is also not talking about is the fact that these pie in the sky projections of how much they're going to soak the rich are not going to pan out they're not going to get nearly as much water from the rich as they think

and so they're going to end up soaking the middle class and the poor if they don't do it with official increases in taxes they will do it with unofficial increases in the inflation tax because the majority i believe of the money that joe biden intends to waste on education health care or whatever it is is going to be created out of thin air by the federal reserve that's where it's coming from and so that tax is going to fall hardest on the middle class and the poor and anybody who is foolish enough to hold us dollars uh us dollar denominated debt right which is why i am you know constantly telling people you got to get out of dollars you got to get into currencies that the federal reserve can't tax you got to own real assets stocks outside the united states you got to own gold silver real money i talked on last week's podcast about the perth mint program at euro pacific capital inquire about

that don't forget to have physical gold and silver in your possession everybody needs to have some gold and silver at their possession in their possession and you don't want to be a coin collector you know don't let some salesman talk you into buying what they say are rare coins collectible coins in fact if you call my company shift gold that's not going to happen because i don't let it happen we don't even sell those coins i don't want to have that kind of product even available there's no bait and switch going on we're just selling bullion we want to make sure that our clients get the most gold and silver they can afford for the money you don't want to be a coin collector you know i mean if you want to collect coins you can collect stamps you can collect baseball cards collecting coins has got nothing to do with buying gold as a hedge against inflation as a form of money that you can save and

have confidence uh that its buying power will not erode over time but i want to focus mostly on these increases in the income taxes that biden has in mind for the rich and of course this is just what he is proposing it could end up being worse right the taxes might end up even being higher so on the upper income biden wants to restore the top tax rate from the uh back up to was it 39.6 is where it was before trump lowered it down to 37. right so oh 37 to 39.6 that doesn't sound that bad right it's not that much well it gets a lot worse that's just the beginning because what he also wants to do is he wants to eliminate the differential between ordinary income and capital gains and dividend income capital gains and dividend income are currently taxed at a maximum rate of 23.8 percent and that rate has really been in effect since bush right and and that happened during uh during his recession uh where they

lowered that in fact he initially lowered it to 20 he lowered it to 20. obama raised it because that extra 3.8 was the medicare right people call that the obamacare tax in order to help pay for obamacare they said okay we're going to take that medicare tax that we used to just have on wages and now we're going to apply that to capital gains and dividends and so that's where the 3.8 percent came to make it 23.8 well now biden wants to up that again he wants to outdo his former boss he doesn't want to only apply the medicare tax to dividends and capital gains he wants to apply the entire social security tax to dividends and and capital gains but not just dividends and capital gains on ordinary income right and and right now you pay the social security tax on your income up to a point i forget the number where it maxes out 130 140 000 there's a point where uh you've maxed out your social security

obligation the medicare obligation never goes away i mean it used to a long time ago but you know the government is constantly moving the bar and so i forget when they made the medicare tax applied to a hundred percent of your income no matter how much you earn but now biden wants to do the same thing with the social security tax now of course people who are going to be paying this higher social security tax they're not going to qualify for any higher benefits right so this is you know you can see more of a welfare aspect creeping in to social security and kind of destroying the illusion that this is anything but a welfare system that is some type of retirement system where the benefits have a relationship to what you pay in because now we're going to have this huge increase in the taxes that people pay without any increase at all in the benefits that they're supposedly going to be receiving

but if you look at this whole thing what biden wants to do is raise the ordinary income tax not from 37 percent to 39.6 but to 55.8 55.8 that is a 50 increase in the current top bracket of 37. and remember this is just your federal tax this is not your state taxes now i don't know if biden's plan is to restore the deductibility of the state and local taxes that trump took away you know if they do that then that will take away some of the sting uh but who knows but we're certainly going to be looking if you're living in california in new york and jersey a lot of these states you're going to be looking at between 65 and 70 percent marginal federal tax rate but the bigger difference is going to be the capital gains and dividends because there the increase isn't 50 percent it's a 134 you're taking the tax on dividends and capital gains from 23.8 to 55.8 that is a huge increase in that tax and again you

got to pay the state tax on top of that so this is an incredible increase in in the tax that investors are going to pay now obviously it exempts the the smaller investors this is for investors that have higher incomes but still a lot of stock is held a lot of dividends are earned by investors with higher incomes and they are going to see an enormous increase in their tax rate but where it really gets worse is when you start thinking about the entire effective corporate tax because one of the other rates that biden wants to increase is the corporate income tax rate he wants to increase that from 21 where it is now back up to 28.

now that may not seem like a lot what seven point percent well that's a 33 increase so that even all by itself if corporate america is seeing a 33 increase in the rate of taxation that's pretty big but you have to remember that corporations are taxed twice right there's double taxation the corporation is taxed when it earns its profits and then the owners of the corporation are taxed when they receive those profits either through a dividend distribution or through a capital gain in fact the corporate tax really amounts to a tax on the shareholders that's who pays the tax right it's the shareholders who own that corporation so when you own a corporation and you earn money through a corporate structure which is what you're doing when you buy stock in a corporation you are buying your share of those income streams and you're entitled to uh you know participate with the dividend but you're effectively being taxed twice

you're being taxed once when the corporation earns the money and then you're being taxed again when the corporation returns those earnings to you either because they pay you a dividend or because the earnings enables them to buy back shares or their stock price goes up because the earnings went up and now you sell some stock at a profit you're you're being taxed so if you look at the actual increase in the corporate tax it amounts to a 70 increase right now the effective corporate tax rate is just above 40 right because the corporation earns money pays 21 pays out the other 79 to the shareholders the shareholders then pay a tax on that if they're paying at the top rate right of course obviously all shareholders are in different tax brackets but i want to talk about the the maximum rates for the high income so right now if you're paying the 23.8 tax if you add the two taxes together the effective top rate for corporate

income is about 40 percent that means the stockholders get 60 percent of what a company makes and the government gets 40 percent biden's plan would increase that to about 68 going to the government and that's the federal government right that's because uh the corporate rate goes up to 28 but then the 72 cents that get paid to the shareholders now instead of being taxed at 23.8 percent it's taxed at 55.8 percent so think about that for a moment we're talking about a 68 corporate tax in the united states and that's just a federal government almost every state has a income tax on corporations there are a few that don't but when you throw in the state income tax let's say nationwide average tax on america corporate america is going to be about 75 the governments at all level are going to take 75 of what americans earn uh through incorporation 75 percent and the shareholders are going to get about 25 now

think about that i mean who owns the company if the government is going to get 75 of the profits and the individuals who own the companies are only going to get 25 of the profits do those individuals really own those companies i don't think so they're just kind of the caretakers the government owns those companies these shareholders are simply managing those companies for the benefit of the government and in exchange for those services the government is cutting in the individual shareholders for 25 of the profits that's what's going on this is effectively a nationalization of u.s corporations where you take the effective tax rate up from 40 uh and so when you throw in the state taxes let's say it's about 45 46 and now you're taking it up to 75 i mean what if we actually had an outright communist revolution and the us government actually seized legal title to the means of production how much more than 75 percent of the

profits do you think they would get i mean would they get a hundred percent no because the profits would vanish i mean one of the reasons that americans work so hard for the government is because they think they're working for themselves the government's got them fooled into thinking they own these businesses when in fact the government owns the business see that's why the fascists are smarter than the communists because the communists haven't figured this out the fascists know that people will work harder if they think they're working for themselves so the fascists know the way to maximize the amount that you can take from companies is not to nationalize them directly but to do it indirectly through taxation and that's really what america is it's a fascist country where the government assumes equitable ownership of the means of production through heavy taxation and of course i mean we already have that

now with the the size of the government's takes but at least the people who think they own the companies at least they earn more than the government but if the joe biden tax hikes go into effect the government at all levels will basically earn triple what the shareholders earn so how can anybody say that the shareholders own the company when they're only getting 25 of the profits you know what it's done is it has turned serfdom on its head if you're not familiar with medieval serfdom right under that feudal concept the lords of the matter would sit back and they would allow the serfs to work their land and the lords would take 25 percent of what the serfs produced so in other words the serfs got to keep 75 of what they earned and they had to pay a tax of 25 percent to the lord and that's what made them serfs right and this was very oppressive right everybody thinks oh serfdom and oh the serfs really had it

rough right because the lords really mistreated them because they took 25 of what they produced i remember for a long time right before i moved to puerto rico one of my main aspirations in life was to one day rise to the level of a surf i thought it would be great if i can only get to keep 75 percent of what i produced i thought it would be fantastic to live in a world where my lord only took 25 of my action right so in other words the medieval serfs had no idea how good they had it because they never had to live in modern america where americans have been reduced to something far lower uh than than than any surf and of course while i'm on the subject of puerto rico before these higher taxes come into effect you guys should get down to puerto rico and join me you know especially uh with everybody working from home now because of kovid why not work from home on a tropical island where the tax rate is four percent and

the capital gains tax rate is zero and you got a contract with a government that says they can't raise it i have a feeling i'm going to have a lot of new neighbors in puerto rico next year but you know people if you want to get down there you should start looking now because the real estate prices are only going up in in puerto rico because there's not enough supply for all that demand and it's not that easy to build down there in puerto rico remember it's an island and it takes a long time to get anything done uh so uh i i would not wait i would just hightail it for puerto rico as quickly as i could but let me continue talking about this this tax plan which really is is turning americans into serfs but president trump should point this out i mean does anybody think these type of confiscatory tax rates are fair the government should take 70 75 of what people earn i mean people keep saying the rich

should pay their fair share is that their fair share given 75 of what they earn to the government that's how can that be anybody's fair share what is fair about that what is fair about keeping you know a fraction of what a medieval surf was was allowed to keep i think if you actually point out these numbers uh there could be a backlash to this reality and of course if you think that it's just the rich who are going to suffer look if corporate tax rates go up this high what does that mean that means that the corporations themselves have less money to invest in plant and equipment they can't improve the productivity of their workers uh and therefore they can't hire as many workers they can't pay as high a wage to their workers and of course if they're not producing more uh they're gonna to be providing more expensive goods and services to the customers so people are going to pay because corporations

are having to send so much of their income to the government that means they have a lot less of their income to invest in growing their businesses which creates jobs and provides goods and services and of course if investors are going to have such a large part of their return taken by government that means they have less money left over to make additional investments that would grow the economy provide goods and services and create jobs so all of this trickles down that's the real trickle down these higher taxes are going to have a very very profound negative effect on the economy on people that uh you know wealthier tax players might have employed businesses that they might have funded and of course yeah you know maybe uh they'll reduce their spending as well and that will have an impact in in in those areas so it's there's no way that middle class people escape paying these taxes just because they

don't write the check to the government they're going to end up with lower incomes fewer employment opportunities and they're going to see higher prices all of this a result of these taxes but it's not just those corporate taxes they want to increase biden wants to eliminate the 1039 exchange for real estate now what is that if you're not familiar with the 1039 exchange and i don't want to get into all of the aspects what you need to do to qualify for the exchange but suffice it to say that what this has enabled real estate investors like donald trump uh and the trump family and many others is you can defer the taxes on the capital gains on real estate almost indefinitely in fact a lot of people defer the taxes until until death and i'm going to get to that in a minute but what happens is let's say you buy a piece of property uh for a million dollars and then you sell it for two million dollars right well

normally oh i got a million dollars i got to pay taxes on that but if you take that million dollars and then you use it as a down payment for a five million dollar property well you don't pay any tax and now you've got this five million dollar property uh but you have a lower basis in it and so when you sell that for a gain now you'll have to pay the tax on the gain on that property as well as the tax you never paid on the first property except if you sell it and then buy a 10 million dollar property right well now you haven't paid taxes there but every time you do this though what happens is in order to qualify for the the exemption they have to be trading up to more expensive properties and they're also usually trading up to bigger and bigger debt so as a result of people's attempts to avoid these taxes they end up with much more levered real estate investments because in order to constantly be going up in market value

they're also borrowing more and more money to maintain that that pyramid and so at the end of the day we have a much less stable real estate market because it has a lot more debt because of the tax code and of course another thing that has enabled real estate investors to pile on so much debt has been the federal reserve and the artificially low interest rates but if biden eliminates this break then that party is over and the minute a piece of property gets sold all of these uh deferred tax obligations are going to uh be you know be released and there is going to be no way around it so that is going to have profound implications in the commercial real estate market which is already being hit hard uh by covet 19 and the changes uh based on you know online shopping and all the other things that are keeping people sheltered at home uh that market is already on life support uh this is something that will cut that

support and of course once interest rates eventually surge which they will i mean that'll be the final nail in the real estate coffin but it's not just the um 1031 exchanges that biden wants to get rid of he wants to get rid of this stepped-up basis at death and what that means is that if you uh have appreciated assets whether it's real estates or stocks or interests in illiquid privately held businesses if you die any of the gain is stepped up to the value of the date of death so for example you know let's say you you started a business and your cost basis is is zero or actually let's just use a stock to start out let's say you bought some apple stock a long time ago right when it was way cheaper and you put ten thousand dollars into apple and now your apple stock is worth a million dollars right because you've held on to it all these years and you haven't sold it well now you die and they step your

basis up from the 10 000 that you paid to a million dollars right and and so now the government never gets that capital gains tax because you never liquidated the stock and actually incurred the gain and now the gain uh has basically uh been forgiven because now the basis is a million dollars because that's what it was worth on the date of death and so biden doesn't like that because he thinks all these rich people are avoiding all these capital gains well the main reason for the stepped up basis is the inheritance tax because there's a 40 percent inheritance tax right now and that inheritance tax is higher than the current capital gains tax which is 23.8 percent or i mean that's where it is now biden's going to raise it to 55.8 percent but the reason that you need to step up the basis is so you don't subject the estate to a double taxation you know first you tax the the capital gain and then you slap a 40 inheritance tax

on what's left over so if biden's plan to eliminate the stepped-up basis is enacted it will effectively amount to an increase in the estate tax from 40 to 73 and a half percent so that's basically an 83 increase in the estate tax and again that doesn't count the taxes that are imposed on a state level so you could be looking at estate taxes north of 80 percent i mean 80 percent what is fair about taking 80 percent of what somebody maybe spent a lifetime to build up i'm talking about a small business or maybe not a small business maybe it started as a small business but became a nice large business and now the guy who founded the business or the woman who founded the business dies and wants to leave the business uh to their children well the estate tax makes that impossible right unless you have some really solid financial planning uh you you you can't survive the estate tax i mean maybe the 40 percent estate

tax possible but still you know a lot of businesses don't have the liquidity to pay a 40 state tax but there's very few businesses or families that can afford a 73 and a half or an 80 percent estate tax so the only way you can pay the tax is to liquidate the estate meaning let's say a guy dies started a business from scratch built it up dies it's worth 100 million dollars well 40 estate tax i mean assuming that there's obviously going to be some other assets that they might have besides that business but let's just say it's 100 million dollar business zero basis 40 million dollar tax is due what if the heirs don't have the 40 million in cash well maybe they can take on a partner maybe they can borrow the money or they can sell it to a guy like warren buffett right berkshire hathaway i mean they love to buy up businesses that are being liquidated by heirs who can't afford to operate them anymore

because they don't have enough money to pay the tax and of course one of the first things all warren buffett would do once he bought one of these companies is start laying off a bunch of workers because he wants to create some economies of scale some synergies with his other business so he buys up these other businesses because the heirs don't have the cash to pay the tax well if they didn't have the cash to pay 40 million dollar tax on a 100 million dollar business where are they going to have the cash to pay a 73 million dollar tax or an 80 million dollar tax on a hundred million dollar business so this this massive increase in the estate tax uh is just gonna be that much more of a burden on the economy and of course you know it's just gonna force a lot more businesses uh to sell even before death right they're not gonna wait uh to die uh the guys that start the businesses are gonna make plans and they're gonna

sell the businesses before that happens right so there is going to be no business uh for the kids to inherit because the inheritance tax uh makes that impossible so the only thing that kids are going to inherit is the cash that's left over after the taxes are being paid but in the meantime we're destroying businesses and we're also making it a lot harder or impossible for entrepreneurs to you know think long term to think beyond their own lifetime to the lifetime of their children when they're making investments and growing their businesses because if they know they can't leave their businesses to their children because the government makes that impossible well they're not making these type of long-term plans but again getting back to the idea of what's right and wrong is it really fair remember if you built up a business and that business was generating income you paid income taxes on that business

your entire life right i mean even if it's not a business i mean when you earn money and you pay taxes on it and then you take the money that you didn't spend and you invest it and now you die why should you have to be taxed again on money that was already taxed right they taxed you out when you earned it and then when you die and you still own it if you haven't spent it all well they're going to tax you again i mean it actually discourages people from saving and investing because if they do that a good chunk of it is going to be taken by the government so you just might as well spend it but this whole tax though is probably one of the worst taxes on the books the estate tax because it doesn't really raise very much revenue but it does a whole lot of damage to the economy and it really is the epitome of just envy you know because the whole idea is oh it's not fair that some people get to inherit

a lot of money so let's let's level the playing field by imposing these confiscatory taxes look yeah i get it it's not fair that some people get lucky and they get to inherit money but you know what life isn't fair those are the breaks you know don't be envious of people that have good fortune you know just be happy for them and but it's unfortunate that so many people if they can't do well themselves will they just take pleasure in other people doing poorly and especially even if they have to be the ones that make them uh do poorly uh by imposing these taxes but and it ends up backfiring it hurts society but of course again going back to capitalism versus socialism what right does the government have to take your property because you die you know the way this whole thing came about and i think i talked about it in an earlier podcast but this is how the government works uh the estate tax and the gift tax

were enacted during the first world war uh and so that's one other reason why we lost that war uh we got the um the federal reserve act amended during the first world war so that the federal reserve could monetize u.s government bonds about something that it was not allowed to do in the original act of 1913 but it was amended to help fund the first world war but also the government tried to fund that war through the estate and the gift tax but the reason they were able to get the supreme court to declare it constitutional even though these taxes are clearly unconstitutional they are unconstitutional because they constitute direct taxes and they are not apportioned according to the constitution all direct taxes must be apportioned according to the population um that's why they amended the constitution to allow the income tax the 13th amendment there is no amendment to the constitution that

allows the government to tax gifts or estates without apportionment even though those are clearly direct taxes well what the government argued and the courts bought that bs argument the government said no no no we're not taxing the estates that would obviously be a direct tax if we taxed people's property right tax on stocks a tax on real estate right a tax on a small business that's clearly a direct tax that would have to be apportioned the government says no no no we're not taxing the estate we're not taxing the gift we're taxing people on the privilege of giving a gift we're taxing people on the privilege of leaving an estate and we're going to base the tax on the value of the estate or the value of the gift but we are not taxing the estate or the gift we are taxing the privilege of giving a gift or leaving an estate because the supreme court had ruled that excise taxes can be applied to

privileges as well as to goods and services so the government claimed that if you own property it was a privilege to give that property away it was a privilege to leave that property to your children and they were going to tax that privilege now that is complete bs and the court looked the other way as the government trampled all over the constitution because if you own property you have a right to do whatever you want with that property including giving it away including willing it to your children or whoever you want to will it to the government cannot turn a right into a phony privilege so they can get around the constitution and tax a right by calling it a privilege unless of course the government now believes that these are in fact privileges and we don't even have a bill of rights anymore we have a bill of privileges because anything we do is a privilege afforded to us by the government because

that's how the government looks at it that's why they don't have any problem with a 75 tax rate because after all they're letting us keep 25 percent of their money that's how they look at it the u.s government looks at all the property as if it belongs to the government and they are generous enough to allow you to use it right and this is where you get the concept of privilege if we're a nation of privileged people rather than sovereign individuals that have rights the government has all the power and decides what privileges it wants to grant to us the government owns all of the income and decides how much it's going to let us keep the government owns all the property the government owns uh the means of production and decides how much they want to share with us that's really what's happening in america i mean think about what americans have been reduced to think about where we were how high we were when americans

were the freest people in the world uh we had this limited government that was there to serve the interests of the people to protect private property uh to ensure our right to pursue happiness and and to secure our liberties and we had all these rights that the government couldn't take away now we don't have any rights that the government can't take away we just have privileges that they can withdraw any time they want and the public is buying this so i think that if if trump or some of his people really did a job of calling out the absurdity of these taxes the the type of taxation that biden envisions for america and what that really means for america and what it means to be an american you know not everybody is rich but everybody aspires to be rich and what these types of taxations are going to do is not only is it going to hit the rich right and hurt the rich but it will hurt a lot more than people who are not

yet rich but who hope to one day be rich these type of taxation schemes are going to make it that much harder for people to ever get the type of wealth or the type of incomes that would subject them to these type of taxes the way that you're going to get rich in this country is if we have a vibrant capital market a free market uh where entrepreneurs can keep what they earn and invest what they earn in helping to grow the economy but if so much of what they earn is confiscated by government if we basically nationalize uh everything through taxation if we become a complete fascist nation uh then uh the the american dream just turns into the american nightmare

Questions about this episode

Who speaks in "🔴 BREAKING NEWS!! Economic Slowdown Could Be Ahead For The U.S., Not Robust Growth"?

Peter Schiff (Host), Steven Mnuchin (Guest), Jack Lew (Guest), Liz Clayman (Guest).

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The discussion focuses on the potential for an economic slowdown in the U.S., countering the calls from current and former Treasury Secretaries for increased government stimulus despite rising deficits. The speaker critically examines the emphasis on stimulating the economy and borrowing, likening the role of the Secretary of the Treasury to that of a "Secretary of the Debt" due to the…

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16 people, works and ideas are mentioned, including Federal Reserve, Peter Schiff, Corporate Tax, US Treasury, Donald Trump, Steven Mnuchin. Each one on this page links to its own page with every episode that mentions it.

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The episode runs 1 h 9 min; the transcript is about 10,761 words in 63 timestamped sections.

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About this transcript: the episode's spoken words as captioned on YouTube, split into timestamped sections. Reclip.Me locates every person, work and idea in the text, keeps the time it is first named, and quotes the words around it verbatim. Last updated January 24, 2026.