🔴 BREAKING NEWS!! Government policies destroy the economy and enable racial injustice

What this episode is about

Government policies are criticized for exacerbating economic collapse and perpetuating racial injustice, as indicated by the dramatic shifts in stock market performance and skyrocketing unemployment rates amid the global pandemic. The narrative highlights the stark contrast between pre-pandemic optimism and the subsequent recession, characterized by unprecedented business closures and societal impacts.

Key takeaways

• Stock market: where 20 million job losses fuel optimism instead of despair—talk about selective memory!
• In 2020, the Dow danced above 26k while the economy was grasping for air. Who’s really in charge?
• A pandemic-induced recession and rioting, yet the Nasdaq is thriving—proof Wall Street and Main Street live in separate worlds.
• Fewer jobs lost than expected, but also a convenient statistical anomaly—let's not confuse recovery with wishful thinking.
• When the Fed’s your fairy godmother, even a collapse can transform into a stock market Cinderella story overnight.

Who speaks in this episode?

• Peter Schiff (Host) · 1 h 8 min speaking

What is discussed, and when

1. 0:00 – 10:00: Treasuries, U.S. stock market, Japanese Yen, Swiss Franc
2. 10:00 – 20:00: Treasuries, Japanese Yen, U.S. stock market, Federal Reserve
3. 20:00 – 30:00: Economic Problems, Black Lives Matter, Welfare State, Adrian Day
4. 30:00 – 40:00: Black Lives Matter, Drug War, Riots, Wall Street Journal
5. 40:00 – 50:00: Equal Pay for Equal Work, Black Lives Matter
6. 50:00 – 1:00:00: Welfare State, Equal Pay for Equal Work
7. 1:00:00 – 1:10:00: Occupational Licensing Laws, Welfare State, Black Lives Matter, Economic Problems

Notable quotes from "🔴 BREAKING NEWS!! Government policies destroy the economy and enable racial injustice"

• Well we had another big rally today in the stock market the dow is up 527 points in fact we're now back above 26 000 for the dow 26 260 some odd points.

  about Stock Market Rally · at 0:04

• Meantime as soon as this number came out the market really rallied right and gold which i'll talk about gold sold off as soon as this number came out as if oh look the economy…

  about Gold · at 6:09

• Overpriced even if the economy was much better than people thought remember the u.s stock market was overpriced at the end of 2019 before any of this bad stuff had happened and now we have all this bad.

  about U.S. stock market · at 6:55

• 1 right we had a zero handle on that yield and remember the federal reserve bought a lot of us treasuries when the yields were under one percent in fact one of the reasons that the.

  about Federal Reserve · at 8:59

• And we need all government more government programs more spending bigger welfare state right and now we have to have more affirmative action corporate america has to do more to stamp out.

  about Welfare State · at 24:09

• And he died in the street now the irony of this right is that the looting was supposedly being done because black lives matter right because a black person was killed by a cop and so black lives matter so now there's all these.

  about Black Lives Matter · at 33:52

• The same amount of money then you don't have the opportunity the black guy doesn't have the opportunity to put himself on sale to overcome racism in fact you know where these…

  about Equal Pay for Equal Work · at 47:17

• Make it so much harder for them to succeed another one is occupational licensing laws we should get rid of all of these occupational licensing laws at least you know for the occupations that don't really.

  about Occupational Licensing Laws · at 1:01:33

Who and what is mentioned in this episode?

People

• Peter Schiff — Person · Host / primary speaker · 33 mentions
  He narrates the entire episode, arguing the stock rally is Fed-driven and that post–George Floyd narratives about systemic racism are being used to justify bigger government.
  The only reason that the market is rallying is because of the fed.
• Adrian Day — Person · Referenced expert / fund manager · 3 mentions · first at 17:50
  Schiff defends Day's management of the Euro Pacific Gold Fund and argues performance should be measured by total return versus GDX.
  About the gold fund and what a great stock picker adrian day is who manages the euro pacific gold fund and so this guy emails me and says hey you got to fire adrian day right he's no good and he shows me he said hey you claim.

Companies & orgs

• Federal Reserve — Company · Primary causal driver in market narrative · 3 mentions · first at 9:03
  Schiff attributes the stock market rally to Fed money printing and asset purchases, and warns about inflation and Fed balance-sheet losses as rates rise.
• Black Lives Matter — Company · Criticized political/advocacy actor · 6 mentions · first at 23:56
  Schiff portrays BLM as part of a fundraising/political push that amplifies a 'systemic racism' narrative to justify bigger government and donations.
• US Treasury — Company · Government counterparty in Fed remittances · 1 mention · first at 10:10
  Mentioned in the context of Fed profits being remitted to Treasury and potential taxpayer liability if Fed incurs losses on open market operations.
  Have a real loss on his balance sheet which by the way the u.s taxpayer is technically on the hook for because we passed the law i think after the last financial crisis that said that any money that the.
• Atlanta Fed — Company · Referenced forecaster · 1 mention · first at 2:15
  Cited for its estimate of an unprecedented Q2 GDP collapse, supporting Schiff's argument that market strength is disconnected from economic reality.
  Unemployed right the economy is going to be collapsing i think the atlanta fed now thinks q2 gdp is going to fall by better than 50 percent 50 right of course it's annualized but still.

Products & tech

• Gold — Product · Core investment thesis / recommended hedge · 1 mention · first at 6:14
  Discussed as a hedge against currency debasement and inflation; Schiff frames recent pullbacks as buying opportunities and distinguishes gold from Treasuries and FX safe havens.
• Treasuries — Product · Contrasted safe haven / criticized inflation hedge · 7 mentions · first at 8:25
  Discussed as falling in price (yields rising) and as a poor inflation hedge; Schiff also highlights Fed interest-rate risk from holding long-dated low-yield Treasuries.
  Clobbered today was the u.s bond market right the treasury market got clobbered now the yield on the 30-year for some reason my program's not working every time i try to type in a quote i'm getting.
• GDX — Product · Benchmark investment product · 1 mention · first at 20:12
  Used as the comparison benchmark for performance of Schiff's Euro Pacific Gold Fund; discussion emphasizes total return including dividends/distributions.
  You have more money even after accounting for those fees now year to date the gdx is beating my funds so that's not the case if you bought the gdx december 31st last year and if you bought my fund on december 31st today.
• GDXJ — Product · Comparator / expectation of outperformance · 2 mentions
  Schiff states an expectation that Adrian Day will outperform GDXJ over the long term, positioning it as another benchmark in the gold equities space.
  Continue to outperform substantially the gdxj.

Concepts & topics

• U.S. stock market — Concept · Core topic (market conditions) · 5 mentions · first at 7:00
  Used to highlight the disconnect between severe economic deterioration and strong equity prices, which Schiff argues is explained by monetary stimulus rather than fundamentals.
• Welfare State — Concept · Policy critique / causal explanation · 4 mentions · first at 24:13
  Schiff claims welfare incentives contribute to family breakdown and reduced work incentives, worsening long-run outcomes and crime involvement.
• Economic Problems — Concept · Core topic (disputed causes) · 4 mentions · first at 24:41
  Schiff acknowledges real disparities affecting African-Americans but argues they are caused by government policies (welfare, minimum wage, licensing, drug war) rather than racism.
  That people are pointing at that are real these are real problems i'm not saying that the economic problems that a lot of people are complaining about that african-americans are experiencing those problems are real it's just.
• Stock Market Rally — Concept · Core market phenomenon explained · 2 mentions · first at 0:13
  Schiff frames the rally as a Fed-induced momentum/bear-market rally that is pulling money out of safe havens and misleading investors about recovery.
• Equal Pay for Equal Work — Concept · Policy target / proposed repeal · 5 mentions · first at 42:18
  Schiff argues equal-pay mandates remove a market mechanism (wage discounting) that could overcome employer prejudice, thereby reducing hiring of discriminated groups.
• Occupational Licensing Laws — Concept · Policy critique / proposed reform · 4 mentions · first at 1:01:39
  Schiff argues licensing raises barriers to entry and disproportionately harms minorities by restricting access to trades like barbering and floristry.
• Economic Data — Concept · Market catalyst / evidence debated · 1 mention · first at 3:45
  ADP employment data is discussed as a catalyst for the rally, but Schiff questions its plausibility versus weekly claims and expects revisions.
  The narrative driving the market higher now there was some economic data that came out today that i think was a catalyst although you never know what might have happened without that economic data because.
• Drug War — Concept · Policy critique / proposed reform · 1 mention · first at 38:23
  Schiff argues drug prohibition creates black markets, crime, police encounters, and corruption; he proposes decriminalization/legalization as a way to reduce deaths and crime.
  One of the reasons that blacks are so involved in crimes is because of the drug war because drugs are illegal and so most of the crime i think that african americans are involved in and i bet most.
• Q2 GDP — Concept · Key macro indicator · 1 mention · first at 2:15
  Referenced via Atlanta Fed’s forecast of a >50% annualized decline, reinforcing Schiff’s claim that economic collapse is inconsistent with equity valuations.
  Unemployed right the economy is going to be collapsing i think the atlanta fed now thinks q2 gdp is going to fall by better than 50 percent 50 right of course it's annualized but still.
• Japanese Yen — Currency · Safe-haven FX reference · 6 mentions · first at 7:46
  Cited as a traditional safe-haven currency that weakened as investors rotated into risk assets during the rally.
  All the other currencies and the swiss franc was down a bit yesterday so investors are selling the safe haven currencies and they're buying back the more economically sensitive currencies commodity linked currencies and so.
• Swiss Franc — Currency · Safe-haven FX reference · 4 mentions · first at 7:48
  Discussed alongside the yen as a safe-haven currency sold during risk-on sentiment, reinforcing Schiff's point about gold's distinct role.
  Japanese yen was down today had a bigger drop yesterday and the swiss franc was about unchanged today against the dollar but it was down against all the other currencies and the swiss franc was down a bit yesterday so.
• Bailouts — Concept · Policy response backdrop · 1 mention · first at 2:42
  Mentioned as part of the government’s stimulus response during the pandemic recession, contributing to Schiff’s broader critique of intervention and money printing.
  Traveling right air travels now at 95 percent or more than that right there's all these government bailouts all these stimulus programs if you knew all that oh and by the way there's going to be major riots and looting in just about.

Places & events

• Riots — Event · Major contemporaneous event referenced · 2 mentions · first at 2:48
  Used to emphasize societal instability occurring alongside the market rally and to criticize looting/violence associated with protests after George Floyd's death.
  And he died in the street now the irony of this right is that the looting was supposedly being done because black lives matter right because a black person was killed by a cop and so black lives matter so now there's all these.
• Great Depression — Event · Historical benchmark · 1 mention · first at 1:48
  Used as the comparison point for the severity of the recession, underscoring the extraordinary macro backdrop against which markets are rallying.
  We're going to be plunged into the worst recession since the great depression i mean it's going to be sparked by a global pandemic right this disease is going to be infecting people they're going to be dropping dead.

Media & podcasts

• Wall Street Journal — Media · Source cited for statistics · 2 mentions · first at 29:26
  Schiff cites a WSJ op-ed for police killing and crime statistics to argue against claims of disproportionate police killings due to racism.
  A number 60 percent now this was in the wall street journal my guess is that the wall street journal fact checked this article before they published it so it's probably accurate 60 of the robberies now my point is that.

Full transcript with timestamps

0:13 well we had another big rally today in the stock market the dow is up 527 points in fact we're now back above 26 000 uh for the dow 26 260 some odd points for the dow but all of the major stock market indexes were positive today big gains in fact the s p 500 is now only down about three and a half percent i think so far this year the nasdaq is actually up almost eight percent on the year i mean think about that i mean if anybody had told you like at the end of last year what was going to happen this year and you were going to guess you know where the stock market might be at this particular point in time not many people would think well the s p will barely be down the nasdaq will will be having a good year i mean think about what has happened in this year because when 2019 ended right everybody was very optimistic i mean the economy was booming we had a great trade deal with china uh trump's going to get re-elected a

1:24 recession is nowhere in sight right the market was at record highs unemployment was at record lows right everybody was very very optimistic and then if somebody came to you and said you know hey i just was in a time machine right they were going to tell you that by the beginning of of june this is what will have transpired number one we're going to be plunged into the worst uh recession since the great depression i mean it's going to be sparked by a global pandemic right this disease is going to be infecting people they're going to be dropping dead right they're going to be bodies are going to be piling up right countries are going to shut down people are going to be quarantined and isolating at home and the government's going to be ordering businesses to close down and so as a result we're going to have like 20 of the population is going to be unemployed right the economy is going to be collapsing i think the

2:15 atlanta fed now thinks q2 gdp is going to fall by better than 50 percent 50 right of course it's annualized but still i mean that is an unheard of number uh the most recent quarter so gdp is going to implode all the economic numbers are just going to collapse people aren't going to be going to restaurants they're not going to be traveling right air travels now at 95 percent or more than that right there's all these government bailouts all these stimulus programs if you knew all that oh and by the way there's going to be major riots and looting in just about every american city right and it's going to go on for a week who knows maybe more right so all these stores that were shut down have now been ransacked and destroyed and all their inventory has been looted and they've been vandalized like all this bad stuff is going to happen right people protesting and riding in the street and massive unemployment and fantastic is

3:14 going to be up by eight percent the s p is barely going to be down off of all-time record highs extreme multiples so again the only reason that the market is rallying is because of the fed i mean people can try to say well no it's the market is anticipating a recovery this is a lot more than the anticipation of a recovery this is all about the fed driving uh the narrative driving the market higher now there was some economic data that came out today that i think was a catalyst although you never know what might have happened uh without that economic data because the stock market was already strong before we got the data but we got the adp employment report right which is the number that we get every wednesday of the week that we get the non-farm payroll from the government on friday and last month that number was minus 20 million jobs actually 20 million 236 000 was the exact number and

4:20 so the estimate was for about 8.6 million additional job losses in the the month of may now what happened is they revised down the prior month to only 19 million 557 000 so a decent revision so not quite as many jobs as we thought but still 19 and a half million is a lot of jobs but what the market seized on was the big beat because in may we only lost 2 million 760 000 jobs now i say only because that's a lot of jobs to lose in one month but when you're expecting 8.6 million and you only lose 2.7 million that's a big beat right the bar had really been lowered and we were able to uh you know hurdle it uh you know with a better number meaning a lower number fewer jobs were lost but first of all the number to me doesn't even look possible i mean how could that be i mean we have been losing two to three million jobs a week if you look at the weekly unemployment claims so based on the unemployment claims you

5:30 have eight to ten million people who have filed for unemployment new unemployment benefits in the last month well if all these people are getting fired why aren't they showing up in these numbers because these are the numbers of the people who are fired you can't collect unemployment until you've been fired from your job so it doesn't make any sense that only 2.8 million people were fired but 8 to 10 million people went and and claimed unemployment so there's probably some kind of statistical anomaly in here i don't know they're probably going gonna have to upwardly revise this number uh next month but in the meantime as soon as this number came out the market really rallied right and gold which i'll talk about gold sold off as soon as this number came out as if oh look the economy is not nearly as bad as we thought the economy is as bad as they thought in fact it's probably worse but when the number came out

6:30 the market rallied on it because of i think uh the the the momentum that has been created by the fed i mean you have stocks that are just going up and it's fueling on itself and now that it's rising well if they can come up with some type of excuse to maintain the momentum oh look the economy is not as bad as we thought oh let's buy stocks but meanwhile stocks are already overpriced even if the economy was much better than people thought remember the u.s stock market was overpriced at the end of 2019 before any of this bad stuff had happened and now we have all this bad stuff which is much worse than anybody could have possibly envisioned and the market is barely down in the case of the s p 500 and in the case of the nasdaq the market is actually higher even though it was already expensive and priced for perfection we got the antithesis of perfection yet the market went up anyway now it's not just the u.s stock

7:30 market that is reacting the dollar continues to get pounded dollar index down again today we're barely holding on to a 97 handle now we're at 97.31 but there are some currencies that are actually falling against the dollar namely the japanese yen and the swiss franc i mean the japanese yen was down today had a bigger drop yesterday and the swiss franc was about unchanged today against the dollar but it was down against all the other currencies and the swiss franc was down a bit yesterday so investors are selling the safe haven currencies and they're buying back the more economically sensitive currencies commodity linked currencies and so overall the dollar is losing value even if it's gaining marginally against the japanese yen in the swiss franc but another safe haven that really got clobbered today was the u.s bond market right the treasury market got clobbered now the yield on the 30-year for some reason my um

8:31 my program's not working every time i try to type in a quote i'm getting nothing so i can't pull it up but i know that the yield on the 30 year closed above uh one and a half percent and to me it looks like we could be making a b line up for two percent uh yield on the 30 year which you know still sounds very very low in historical terms but it's not that low when not that long ago the yield on the 30 year was sub 1 right we had a zero handle on that yield and remember the federal reserve bought a lot of us treasuries when the yields were under one percent in fact one of the reasons uh that the market went up was because of all the money the federal reserve printed to buy up all those treasuries so what's happened now what is happening to the fed is as interest rates are rising the fed is losing money because they have a lot of interest rate risk because they bought all of these long-dated low-yielding treasuries

9:32 and now as treasury rates rise the value of their balance sheet the assets on their balance sheet is coming down meaning if the fed had to shrink the balance sheet if it had to sell some of those 10-year treasuries or 30-year treasuries instead of holding them for 30 years and waiting for them to mature if the fed had to sell them into the market now the fed would not get back as many dollars as it received uh uh when you know i mean when it when it bought them it would the fed would not receive back as many dollars as it paid to buy the treasury so the fed would have a real loss on his balance sheet which by the way the u.s taxpayer is technically on the hook for because we passed the law i think after the last financial crisis that said that any money that the federal reserve loses through its open market operations is now a liability of the us government to the fed see when the fed makes a profit

10:29 it pays that profit to the us treasury if it exceeds a certain number but now if the fed starts losing money which it would do if it had to sell its treasuries at a loss well now the u.s government is going to have to write a check to the federal reserve right now right now the u.s government gets the money from the federal reserve so obviously it can't pay the federal reserve with the federal reserve's own money so that money is going to have to come from the u.s taxpayers so we are on the hook for big losses in the balance sheet but all these safe havens were going down us treasures were going down swiss franc was going down uh japanese yen was going down and that's why i think gold went down and in fact silver went down as well as gold today gold was down almost 30 bucks we actually settled just below 1700 i think 1698 and change silver was down about 44 cents uh 1766 and silver was down and gold was down

11:27 yesterday as well not as much as today and the mining stocks had another uh decent down day following the metals lower and i think the idea is or the reason is it's a safe haven right so if everybody is getting more optimistic on the rebound on the reopening even though there's no real reason that they should be more optimistic uh and again i think it's just the rise in the market itself that is creating the optimism i mean people are thinking that the market is rising because people are optimistic about the recovery i think people are optimistic about the recovery because the market is rising and the market is not rising because of the recovery the market is rising because of the fed because of all the money the fed is printing and even though a lot of people don't think printing money doesn't matter printing money matters a lot and people are about to find out the hard way just how much it really

12:23 matters and they're going to find out that there is a big difference between gold and us treasuries and between gold even and the swiss franc or the japanese yen because people aren't buying gold at least the people who understand the gold market people are not buying gold to hedge the stock market because i think that's one of the other reasons that the safe havens were selling off is this rally in the stock market it's not just the idea that the economy is better than people thought it's that the stock market is stronger than people thought and so there were people who wanted out of stocks and they had to put their money someplace so they put it into bonds or they put it into the japanese yen or they put it into gold and so now if they want to get back into stocks because they think the worst is over and now they're missing out on this big rally and again that's what bear market rallies do they sucker you in they get

13:14 you to think you're missing out on a new bull market and just when they get everybody loaded on board is when the bottom drops out but gold is not really a safe haven for a stock portfolio you're not buying gold to a hedge your stock portfolio that's not the reason i mean some people might be buying it for that reason but that's not the main reason people should be buying gold and i'm sure many are to hedge their currency whether they live in the dollar and they have euro i mean dollars or they live in europe and they have euros or they live in japan and they have japanese yen central banks are creating tremendous inflation and central banks have told everybody that we are intentionally destroying the value of our money right that is our goal we want prices to go up more we want more inflation we want the dollars or the euros or the yen that you're keeping in the bank or in your mattress somewhere we want

14:16 them to lose value the longer you hold on to them the more value they are going to lose this is on purpose this is by design so once the central banks have told you that that's the plan you would be a fool to cooperate right what you should do is get rid of your dollars and get rid of your euros right now you can use them to buy socks if you want but what if you don't want to do that what if you wanted to save you didn't want to invest in the stock market you didn't want to invest in the real estate market you just want to be liquid you want to save well now you're saving gold instead of saving in dollars or euros or some fiat currencies that are being debased so gold is a hedge against central banks creating inflation it's ahead again hedge against the basing currency that is the opposite of treasuries right if you are worried about inflation the last thing you would do is buy u.s treasuries because detroit

15:11 inflation destroys the value of dollars and a treasury is simply an iou a promise to pay you dollars in the future well the more inflation there is between now and that maturity date the more value the dollars are going to lose between the time you loan them to the government and the time they pay you back so while maybe you could say treasuries and gold are both hedges against stock market volatility or a weak stock market they're not both hedges against inflation they're not hedges against central banks printing too much money so the people that understand what's happening they are not hedging that risk in treasuries they are buying gold right and the reason that the u.s stock market is going up the reason that the economy isn't even in worse shape is because of all the money printing is because of all the inflation so rather than selling gold right because the stock market is rising oh

16:11 time to sell gold investors need to understand why the stock market is rising it's rising because the fed is printing all this money because the fed is creating inflation and debasing the value of currency that is going to drive the value of gold gold becomes more valuable because of what the government is doing to prop up the stock market and prop up the economy so a strong stock market is not a sell signal for gold and it's certainly not a sell signal for gold stocks because gold stocks are going to be more profitable as the gold price moves higher and higher in response to all of the inflation that's being created which is why the sell-off that we had in the last couple of days in gold and in gold stocks is just a buying opportunity now of course i'm not all in gold stocks i have a lot of non-gold stocks that have gone up a lot in fact the foreign stocks have been much stronger than the domestic stock market the last

17:07 couple of days i mean there are a lot of stocks that i own that have gone up 5 10 15 in the last couple of days these are non-gold stocks and then you can add to that the gains from foreign exchange because a lot of these stocks are not only going up but so are the foreign currencies that they're priced in they're going up too so while we've had a rally in the u.s stock market the past couple of days the rally we've had in foreign stocks has been much bigger but the pullback that we've had in uh gold and gold stocks is another buying opportunity and by the way somebody sent me an email and this is a wise guy likes to kind of you know i guess uh tease me or uh and and so i was talking about the gold fund and what a great stock picker adrian day is who manages the euro pacific gold fund and so this guy emails me and says hey you got to fire adrian day right he's no good and he shows me he said hey you claim

18:00 you've got a great track record that you're beating the gdx since your fund was started well look look at where your fund is today look at the price today and look at the price of the fund when you started it and look at the gdx and the gds x has gone up more right you've underperformed the gdx so your fun sucks and you should fire adrian day right this is what this guy emails me well you know when it comes to evaluating performance especially mutual funds but this comes with all stocks too you can't just look at the price you have to consider the total return of that asset over the time period that you're measuring and of course when you're dealing with stocks there are dividends stocks pay dividends you can't ignore the dividends when you're trying to assess the returns because those dividends are part of your returns and of course you could reinvest those dividends if you want to uh which can compound those returns

18:52 that's part of the beauty of interest and dividends is the fact that you can compound them so you can't ignore those distributions and when it comes to mutual funds there's distributions and our gold fund every year has made a distribution those distributions can either be taken as cash or many of our clients just elect to reinvest those distributions and put the money right back in the fund right and just continue to let it grow but anyway so i sent this guy an email and i pointed out that if you go back to the inception date of my gold fund and you count all the distributions and of course count all the dividends from the gdx because the gdx paid dividends too so you don't want to ignore that you want to you want to put the dividends there too right we want to compare apples to apples but when you do that and you look at the total return of the euro pacific gold fund versus the gdx since the inception date

19:45 we have substantially outperformed the gdx so we have justified our fees yes it is more expensive the cost of being in the euro pacific gold fund is higher than the cost of just buying the gdx but had you bought the euro pacific gold fund on the day that i started it over five years ago as of today even though you paid higher fees you have more money even after accounting for those fees now year to date the gdx is beating my funds so that's not the case if you bought the gdx december 31st last year and if you bought my fund on december 31st today you're better off in the gdx but that's a short time period that's not even six months we're not making investments for short-term performance we're making investments for long-term performance and i believe uh that adrian day over the long term is going to continue to outperform substantially the gdxj and i think this short period of underperformance is actually a buying

20:46 opportunity because i think we're going to catch up and then once again pass them uh in the shorter period but even with the underperformance this year we're still outperforming since we first started and again you know no guarantees just because i think that we're going to continue to outperform doesn't mean that we will but it's my expectation that we will and of course when you make investments you're having to make an investment based on what you expect what you think will probably happen knowing that it might not trying to assess the risks and probabilities the upside and downside but given all the inflation that's being created eventually investors are going to figure this out and what i think is ultimately going to happen is it's not going to matter which direction the stock market goes right you're going to see golden stocks moving up together right you're going to see gold stocks

21:34 moving up with the stock market because the same thing that is driving the stock market higher is what will be driving gold and what is driving gold higher and that is inflation central banks are creating money the fed in particular is creating all this money and because of all this money creation the s p 500 is going up the nasdaq is going up but printing money is better fundamentally for gold than it is for the s p which means the companies that are going to benefit most from all the money the fed is printing are going to be the gold mining companies so eventually the markets will figure that out but in the short run you've got these selling opportunities because people don't know and they see the stock market rallying and they think ah no reason to own gold no reason to own gold stocks and so they sell and there is your opportunity to buy but also i wanted to uh spend the rest of this podcast again

22:32 talking about what has happened in the aftermath of the death of george floyd uh and the way uh the left has been capitalizing on this tragedy and using this uh to exploit a false narrative to drive a socialist agenda of bigger government and the narrative is that blacks in america are suffering because of widespread systemic racism right it's not just racism in the police department but it's racism all over the country and what happened uh to george floyd is just an example right the fact that these racist white cops killed a black eye right that was because of racism and this is just you know happening all the time right that the cops are out there it's open season on blacks black lives don't matter you have all this all these racist cops that are killing black people and that has to stop but it's not just racist cops there's racists all over the place right and they're in every occupation

23:36 and so the reason that we have all these problems in the african-american community the reason that they don't have as much wealth or they don't have as much opportunity uh you know all of that stems from racism and so the solution then is we need to eradicate racism and the way we do that is we donate all this money to all these charities or black lives matter naacp we have to give all these uh entities money a to show that we're not racist and that we support ending racism so we show that by giving money to charities that are supposedly going to stamp out racism and we need all government more government programs more spending bigger welfare state right and now we have to have more affirmative action corporate america has to do more to stamp out racism right but all this is false the racism is not there i mean i'm not saying there's no racism there's always going to be some degree of racism but

24:31 the racism that we have today in america is not the reason for all the problems that people are pointing at that are real these are real problems i'm not saying that the economic problems that a lot of people are complaining about that african-americans are experiencing those problems are real it's just blaming them on racism that's the fantasy because racism is not the reason for these problems in fact you know you go back 50 or 100 years right a lot of these problems these economic problems socio-economic problems where you compare uh blacks with the general population or compare blacks and whites right and look at some of these numbers right the disparities are actually greater now than they were 50 years ago or a hundred years ago i mean if these problems resulted from racism well the problem should be fewer i mean is anybody going to argue that there is more racism today in america than there was

25:31 a hundred years ago that there are more racists in 2020 than there were in 1920 i mean come on who would believe that i don't think anybody believes that i mean 1920 right the civil war ended in 1865. that means in 1920 somebody who was 55 right was born the year of the civil war which means if i was alive in 1920 at my current age of 57 i would have been born during the civil war and it's possible that if i was born white maybe i was born into a household that had slaves right my parents could have been slave owners if i was black i might have been born a slave myself right my parents could have grown up as slaves right so how can we be more racist now when we're over a hundred years further than from slavery then back then in fact a lot of this uh racism when you hear them talk about it it's the remnants of slavery it's it's left over right from slavery it's because you know there was slavery

26:40 that there there's still this this problem that is there is that that you know it has left over from slavery well if that is the case if the fact that we had slavery in our past right if that is the problem that's why we have racism today because of slavery in the past well wouldn't that leftover racism that residual like racism wouldn't it have been a bigger problem in 1920 when there were actually people who were alive who remembered slavery who owned slaves or who were slaves i mean wouldn't the the remnants of slavery have a bigger effect you know when they were still slaves alive and people that own them as opposed to now when they're all dead so no it is not racism that is the problem is it a problem sure it could be a problem but it's not the problem it is not the cause of all these economic problems and if we're just gonna assume that it's racism and if we're gonna say oh racism is why we have all

27:36 these problems then the problems are never gonna get solved right if we keep trying to eradicate racism which by the way has you know most people aren't racist we have made tremendous progress in the last 100 years there is a lot less racism today than there was a hundred years ago and that's a good thing could there be less sure there could be less is there ever going to be none probably not i don't think we'll ever be able to completely eradicate racism but it's not creating the economic problem that people think it is right in fact it's not even the problem with the police right the the the narrative now right is that the uh the the death of um um george floyd right that this is all racism right that he was he was killed because he was black and he was killed by a racist policeman and that somehow if george floyd had been white and all the other circumstances were identical then somehow

28:40 uh the police would have treated uh floyd differently as a suspect they they he he would not have died but for the color of the skin now there's no actual evidence that that's the case right i mean there is none maybe it's true maybe it's possible that that's why this policeman acted the way he did maybe he actually was a racist but you can't jump to that conclusion simply because he's white and and george floyd is black i mean that would be racist to just jump to that conclusion without any evidence but even if that is the case it's actually the exception not the rule there is no statistical evidence that police are disproportionately killing blacks it's just not there in fact there was an article that i read today op-ed in the wall street journal that actually came up with the statistics right and so last year uh the most recent year with statistics 2019 just over a thousand people were killed

29:38 by the police thousand people thousand and two i think was the number 25 approximately of those people were black 25 not the majority 25 so 75 of the people that police killed were not black they were either white or hispanic or asian they were not black right um and so somebody might say oh well peter you know blacks are 13 of the population right so if 25 of the people that police kill are black well they must be discriminating right because why isn't it 13 right you're you have twice as many blacks being killed by police as it would be represented by their percentage of the overall population but you can't look at that right what you have to look at is the racial breakdown of the people who are committing crimes because it's the people who are committing crimes that are interacting with the police right if you just you know you never break the law and you just go about your day chances are you're not running into the

30:42 police and if you're not interacting with the police they don't have the opportunity to kill you right so you have to look at who's committing the crimes and in that same article the guy brought up the statistics from 2018. he said the 2019 statistics weren't available the most recent year was 2018. and it turns out that in 2018 african americans committed 53 of the murders in the united states 53 and they committed about 60 of the robberies which actually surprised me i mean i knew that it was going to be out of proportion to their percentage of the population i was actually surprised that it was that big a number 60 percent now this was in the wall street journal my guess is that the wall street journal fact checked this article before they published it so it's probably accurate 60 of the robberies now my point is that if blacks are committing such a disproportionate percentage of the crime

31:47 well then if they're 25 of the people who are being killed by police that is not because of racism of the police just because they are interacting with a much larger percentage of blacks in fact if you look at how much crime blacks are committing they're actually underrepresented they're actually being killed in a lower proportion than they're interacting with the police in fact another statistic i looked at is that 40 of the police who are killed in the line of duty are killed by somebody who is black right and this would you know include black police but 40 of the police are killed by people who are black but only 25 of the people police kill are black right so what does that mean that means that if you are a policeman and you're killed you are 60 percent more likely to have been killed by a black person than you are to have killed a black person so in reality it's the police that should be out protesting they should be

32:51 saying police lives matter right because don't they i mean after all too a lot of these police who are getting killed they're black i mean don't their lives matter don't the lives of black policemen matter i mean what about the retired black policeman david dorn doesn't his life matter you know he was killed that very very sad story my wife was crying about it last night when she heard about it and watched it but this retired guy looked like a really nice guy a grandpa was just gunned down in the streets left to die bleeding in the streets you know it's a very disturbing video it's up there on youtube to just watch this guy bleeding out right uh but you can't see who shot him but apparently there was a lot of looting going on and i think it was an electronic store because there was a guy saying hey he was killed over a tvs but apparently as a retired policeman he felt a civic responsibility

33:44 right to try to stop a crime from happening and apparently you know he tried to do something to stop the looting and he got a bullet in his chest as a result and he died in the street now the irony of this right is that the looting was supposedly being done because black lives matter right because a black person was killed by a cop and so black lives matter so now there's all these riots well this rioter one of these rioters decided to take a black life he killed somebody who was black didn't his life matter i mean do black lives matter only when it's a policeman who kills him but if somebody else kills him it doesn't matter or do black lives only matter when a white person is the one that kills somebody who's black but it doesn't matter at all when a black person kills a black person is that is that the idea or maybe black lives only matter until one of them tries to stop you from stealing a television set that you want

34:38 in which case their life doesn't matter at all right oh i want this tv and if i have to kill a black guy to get it well his life doesn't matter because i want that tv right this is what is going on so the whole idea right that there's all this rampant racism in the police department it's just not true am i saying there are no racist cops of course not there are racists in every occupation so i'm sure there are some in the police department maybe more than in other occupations and i think we do need to be especially vigilant when it comes to cops because they have the badge right they have uh the right to use force right so a racist cop is inherently a lot more dangerous to society right or if you're black and he's racist against blacks then let's say you know somebody who's maybe a racist florist right what's i mean what's the worst thing a racist florist is going to do to you right give

35:32 you a bad floral arrangement all right so you go to a different floor it's no big deal right he can't do the kind of damage and in fact if there is a racist florist doing a bad job for blacks he's only hurting himself because he's going to lose all his black customers they're going to go to somebody else who isn't a racist so yes i do think that we have to be particularly vigilant when it comes to racism in the police department uh and we have to be particularly vigilant against a police brutality especially because the police are the agents of the state and they have power right that's where you have to fear racism you don't have to fear it in the private sector you have to fear it in government remember policemen are government officials right so if we have to be worried about racism anywhere it's from government because government has power over us the free market doesn't have power businesses can only earn our business by

36:22 convincing us to to uh to patronize them right so we don't have to worry about the racist businessman right because the free market is going to take care of that and i'm going to explain that in a minute we have to worry about racism in government institutionalized racism um but anyway so so the so the first false point is that you see right these these are ri racism is rampant in the police force and all these uh blacks are being killed by white racist cops right which isn't happening but then once they've established that lie then they build a whole case of lies on well this is just symptomatic of the racism in the entire country right and now you have all these ceos coming on television sending emails and this is like supposedly a wake-up call now to remind us of just how racist we are right and how blacks can't succeed in america because they're the victims of racism and now we all have to start paying

37:19 giving more money to these race race sensitive charities and we need all these government programs that are going to do nothing a they're probably going to do nothing to diminish racism which is being diminished on its own uh but what they are going to do is actually exacerbate the problems that are being uh unnecessarily or incorrectly blamed on racism right it's the government that is creating uh the racism now you know if all these people that are saying you know the black lives matter right if they really mattered what could they actually do i mean because there are things that could be done that would actually save a lot of black lives right because i just pointed out that one of the reason that so many blacks are being killed is because they're breaking laws and they are encountering the police while they are in the process of committing those crimes right so if blacks committed fewer climbs well

38:15 then fewer would be killed by the police right one of the reasons that blacks are so involved in crimes is because of the drug war because drugs are illegal and so most of the crime i think that african americans are involved in and i bet most of the deaths right most of the time where the police end up killing somebody it's probably related to a drug crime right so if we legalize drugs decriminalize drugs take the profits out of illegal drugs we eliminate most of that crime and then we eliminate most of those deaths i mean we solve so many problems by ending the prohibition on on on drugs and also a lot of other uh things that governments do to create black markets where taxes are too high in certain areas and then you develop a black market and the minute there's a black market you end up with a profit for a criminal and now the criminal tries to earn that profit illegally and of course now

39:13 they're going to have encounters with the police because they're breaking the law so first thing we can do if you really care is let's decriminalize drugs right but no that's not even going to come up no one's going to even talk about all these crimes that are being committed and why so many of them would not be committed if we if we just uh legalize drugs and of course one of the other reasons that you have corruption in the police department is because of the drug money i mean i mean not all police are corrupt i think most policemen aren't but to the extent that there is corruption a lot of that can be traced to the drug money that's where it's coming from right or other things that are illegal like prostitution victimless crimes get rid of that legalize prostitution that'll solve a lot of the problem too all of these victimless crimes whether it's drug use or prostitution should not be crimes so that would go a

40:03 long way in solving a lot of the problem but also what you have to realize is what are the reasons that so many uh you know young black males uh and again those are the ones that are committing the crimes too it's not elderly black women it's it's teenage black males or early 20s they're the ones that are doing all this um but one of the reasons that so many young black men go into drugs and pursue a life of crime and end up potentially getting killed uh by a policeman or killing a policeman right uh is because we have made it so difficult for them to take a legitimate path there are all sorts of government well-intentioned laws and programs that make it harder for people to pull themselves out of poverty the honest way right and so when you shut down all of those avenues and the only one that's left open is going into illegal drugs and when the profits are so high from dealing drugs because they're

41:02 illegal and you have this big profit that is a big temptation for a yacht a lot of young kids right they you know they see that as their only way out so what we need to do is show them a better way show them a different way out of poverty other than drugs and again one way is you take away the profits right by making them legal and so they won't have that big temptation but then you remove the roadblocks to let them go down the other roads right and so what i want to talk about right now is some of the things that can be done there's a lot of people say hey peter you always want to talk about the problems why you talk about solutions yeah i got a lot of solutions so let's talk about them all right so here are the things that we could do right all the people that pretend that they care right and they want to show how much they care by just donating to these charities that are going to make the situation work

41:59 here are some things that we could actually do right in order to uh improve the economic circumstances of not just african americans but of a lot of people right that aren't african-american right there's a lot of things that we can do right one of the things that we can do is actually eliminate the equal pay for equal work laws right as i said earlier there is some discrimination that goes on well the best way to combat it is to impose an economic penalty on people who discriminate right on racists who discriminate based on race right you want to have a penalty on them right because the market imposes a penalty on its own right let's say i am a racist i'm i'm white and i happen to be bigoted against blacks i'm you know again i want to focus it on black because this is about black lives matter and all this but it could be i could be against women i could be against hispanics homosexuals

43:02 whatever but let's just say my prejudice is just blacks right i'm a white guy and i don't like blacks right that's that's that's my prejudice anyway but i have a small business and a black guy applies for a job and he's like oh he's the best candidate i mean he's he's really really good right he's like so qualified for the job in fact he he's he's better than any of the white applicants right he would do a much better job and i would earn more money if i hired that guy over the next best white guy well i have two choices right i can not hire this black guy because i don't like black people right i'm a racist and i can hire somebody who's not as good the white guy or i can hire the better guy and make more money so in other words if i choose to be a racist and not hire the black applicant because i'm a racist it costs me money i'm going gonna make less money because i've hired a guy that's not gonna be as good for the job

43:57 and of course if i don't hire that guy what if he goes to work for my competitor my competitor hires him and now he's out competing me you see in a free market if you have two businesses one business that's hiring the best people regardless of their race or gender or sexual orientation whatever just the best people for the job that will do the best at making the most money for the employer and then there's somebody else who's just hiring people that are white because he's just a bigot well that guy is not going to compete he's going to be less efficient he's going to have higher prices and ultimately he's not going to stay in business it's the businesses where there is no racism where even if there's a racist the racist doesn't allow that attitude to impact his decisions on who he hires and who he fires those are the businesses that are going to survive those are the businesses that are going to grow

44:49 their racist businesses are going to die out so free market capitalism that's how you combat racism but there are going to be circumstances right let's say there's two guys i'm a white guy i'm a white bigot and i got two job applicants one is white one is black and they're equally competent right they're they're pretty much the same right i think that they would do the same job right well i mean then okay sure now i'll hire the white guy right because i'm a bigot right but they're both equally qualified i'm gonna make the same amount of money regardless so okay i can afford to be a bigot because it's not costing me any money right so i'm gonna hire the white guy right now is that bad for the black guy yeah you know i mean that you know life isn't fair stuff like that happens right oh there's a bigot the guy didn't get the job well what if the black guy knowing that the employer could be a bigot

45:42 what if he says you know i'll work for less money maybe you're going to pay the white guy 20 an hour i'll do the job for 18. now it's a whole different story now it cost me two dollars an hour to be a racist right so am i gonna be a racist if i can pay the the black guy 18 it's gonna cost me two dollars an hour to hire the white guy and he's no better well i'm gonna i'm gonna take the less expensive option right i want to save the money i'm not gonna be a bigot if it's gonna cost me two dollars an hour right i'm gonna i'm i'm gonna buy the the less expensive work now people might say well that's not fair but life isn't fair right i mean and even if let's say a guy a black guy to get his foot in the door needs to work for less money for for a racist boss just to prove his worth right all right i'm going to give you a deal i'll work for less money but once you get the job you get your foot in the door and now

46:40 you prove to your employer what a good job you're doing and of course you learn some more skills on the job to be increase your value maybe after six months you go to that racist boss and say you know what you got me cheap but now that you've seen what you bought i need a waze or i'm quitting right and if you're doing a good job and he's already invested in training you and he knows he's underpaying you he's going to give you a raise that is just what's going to happen that is life but you know what happens is when you when you pass a law mandating equal pay for equal work right where you can't right you have to pay whites and blacks the same amount of money then you don't have the opportunity the black guy doesn't have the opportunity to to put himself on sale to overcome racism in fact you know where these laws started the equal pay for equal work laws it started with the chinese like in the 1800s

47:34 because people were hiring chinese and paying them less so the white people like oh we don't want this let's force everybody to pay equal pay for equal work so people won't hire the chinese anymore because it was they were getting all these jobs because they were working for less because there was some prejudice against the chinese but once you had to pay the chinese the same as the whites well they stopped hiring them you know there's a a very good economist by the name of walter williams one of the economists that was very influential on me and he happens to be african-american walter williams and he came up with a great analogy and i still remember it and i you know i read this book i think it was the state against blacks which is where i read this analogy uh but he used the analogy of comparing steak and chopped meat right hamburger versus steak right most people would rather eat a steak

48:26 than a hamburger right well then why doesn't everybody just eat steak well because steak is more expensive than hamburger right so if you want to save money you buy hamburger if if you're willing to pay extra then you buy the steak right so this was his analogy so don't think it's racist because i'm using an analogy that was created by a black guy right so what he said is well what if the government passed the law and they said that all meat had to have the same price you couldn't discriminate you had to charge the exact same price for steak as hamburger right so now you go to the butcher shop and you see a steak for sale and right next to it is a hamburger and they're the same price is anyone gonna buy that the hamburger no why it's the same price of the steak i might as well buy the steak the only chance the hamburger has of making the sale is to be cheaper i know you'd rather have a steak but look you can eat me and

49:18 i'm less money right that's how you combat racism yes mr white racist i know you'd rather hire a white guy but look you can hire me i'm a black i'm gonna i'm gonna do it for less money that is the solution that is how the market will stamp out racism and again people say oh is it fair life isn't fair people have all sorts of obstacles that they need to overcome the problem is the government can't eradicate it the government makes it worse the government doesn't change the circumstances in favor of blacks it turns the tables i mean this is the biggest irony not just of equal pay for equal work which now you know takes away the cost of discriminating right so it leads to equal pay for equal work means fewer blacks get higher not more it means fewer but one of the the worst things that they do is the anti-discrimination laws those anti-discrimination laws are the reason that so many employers

50:19 discriminate for the based on the very characteristics that the laws are intending to protect right because if you're a small business and it's not as big a deal for a fortune 500 company right they can afford the lawyers and so you know they they they don't have to really use these decisions but if you're a small employer and most of the jobs in america are created by small employers right that's where most of the jobs come from and small employers you know they don't have a lot of money they're small right and they and the last thing they want to do is end up in court the last thing they want to do is have legal bills right because i mean they can be very high in this day of age we're very litigious and so small businessmen they want to minimize their legal liability their potential legal costs right now here's what happens with these anti-discrimination laws as i said people in general who are

51:18 running small businesses don't discriminate based on characteristics that are not related to job performance because they want to hire the best people because even if they are racist their greed trumps their racism they're not going to pay to be a racist if they could do it for free fine but if there's a cost they're stingy too they're racist but they're greedy and their greed is stronger than their racism right now you pass all these laws that make it much easier for certain people to sue their boss right well the minute you do that if you make it easier for certain people to sue their employer you make it less likely that anybody wants to hire them in the first place because if you're a boss you know which people are more likely to sue you and it's not because you're a racist you know the people that have been granted special privileges when it comes to employment and what you could sue for so let's say i'm a small

52:23 business owner and i want to hire somebody right what is the safest hire i can make if i want to minimize my litigation maybe i hire a 30-year-old straight white guy right because if i hire that guy the odds of me getting sued are very very low what's he gonna sue me for he's not a member of any of the classes and remember when you hire somebody right it's not just that they may sue you because you know you fire them and they claim it's based on a race or you don't promote them you promote somebody else and they say that's based on race uh or you're not paying them as much as somebody else and they say it's based on race it's not just the things that you may do yourself but you're now responsible for what your other employees do right if you have three employees and one is white and one is black and the white guy somehow offends or harasses the black guy or the black guy claims that he's been offended

53:17 or harassed it's not your white employee who gets sued right the worker doesn't sue his co-worker it's the employer you are responsible for everything that happens so even if you're you don't have a racist bone in your body it's possible that one of your employees does and you don't even know it but again it doesn't even matter because people are you know you're guilty until proven innocent right anybody that you hired could just make it up could just claim that something happened that was racial and now you're in court even though nothing happened right so a lot of the lawsuits are frivolous so you want to minimize that so you hire a guy a white guy straight guy who's 30 years old you're probably not gonna get sued right what about a 55 year old uh black lesbian right are you going to hire that person i mean that's a lawsuit waiting to happen right i mean a black so that you could be sued because of

54:15 racial discrimination she's a woman so you could be sued for gender discrimination she's 55 you get age-based discrimination now she's a lesbian now she could you could get sued because she discriminated based on sexual orientation and you know you better make sure that the person you hire doesn't have a handicap on top what if they're in a wheelchair what if they're blind that's another reason that you could be sued so the government basically takes all these people right that they want to protect from discrimination who in a free market there would be no discrimination but now they have given a massive financial incentive not to hire them so now the guy that just hires you know 30 year old white men he actually has a lower cost of business than the person who's hiring hiring blacks or women or older people or handicapped people because that guy is going to be tied up in court that guy is going to be hit

55:09 with all sorts of lawsuits that the other guy is avoiding so the government right now rewards you for discriminating the free market punishes you for discriminating so if you're punished for doing something you do less of it if you're rewarded for doing something you do more of it so paradoxically we end up having more discrimination because the government makes it illegal to discriminate that's what happens now i know people say well peter you think discrimination is okay i don't think it's okay i just recognize that there'll be less of it if we don't outlaw it now i also think that people have a moral right to discriminate if they want if people want to make dumb decisions based on race they're labeled to do that i mean fine they're not going to succeed in life they're not going to succeed in business right so let people be dumb right i mean i'm going to hire the best people if somebody else wants to hire based on

55:59 irrelevant considerations i'll eat their lunch when it comes to competition right so realize that life isn't fair and people have rights meaning they have a right to do bad things just like you have freedom of speech right i don't believe in socialism but i believe that people want to protest and say we want socialism they have a right to say things that i disagree with they also have a right to do things that i think are wrong if they want to just if they want to discriminate that's their right right i don't i i can't change their behavior just like i said earlier people want to do drugs that's their right people want to use prostitutes that's their right right whether you think it's wrong or not people can make their own decisions whether you agree them or not because the minute you want to impose your morality on somebody else that's when they can impose their morality on you see a lot of people are very cavalier

56:48 about outlawing things that other people are doing until it's turned around against them right because once you give the government the power to tell people what they can and cannot do if initially it's used to prohibit things that you're in favor of eventually they use it to prohibit things that that you want that you want to do not that you're against right you don't want to give the government the power right because whatever power you give the government to use against somebody else now the government can turn around and use it against you so if you don't want the power used against you then don't give it to the government in the first place and so just allow the market to fix it and again that is why the reason that we have all these problems today in the black community that we didn't have a hundred years ago is not because we're more racist it's because all these laws didn't exist a hundred years ago all the

57:39 government rules and regulations that are really responsible for the problem we didn't have them back then so the problems didn't exist back then they exist now so the other thing you know apart from getting rid of equal pay for equal work apart from getting rid of anti-discrimination loss they could get rid of the minimum wage of course the minimum wage no-brainer right i mean one of the reasons that young black inner city kids can't get jobs is because the minimum wage has priced them out of the job ladder they can't get a job it's illegal the only thing they can do is drugs because it doesn't matter that that's illegal right so get rid of minimum wage law let young people get jobs and get skills right a lot more young people will be able to get jobs and that means when they're older you let 16 17 18 year old kids get a job any job i don't care how low the pay is when you get your first job it's the

58:33 experience that's more important than the money anyway if you make anything that's gravy get the job especially when you're still living at home you don't even have any expenses right you have no rent you don't have you know you don't have a wife to support you don't have any kids you just need money for dates or whatever you know clothes cell phone bill get a job get experience so if we get minimum minimum age we have more job opportunities more opportunities for people to get experience more opportunities for people to develop their skills so in their 30s they can be making a lot of money they can afford to buy a house they can afford to support a family right you get the skills and you you you become a higher earner before you do the other stuff right you don't just you know get married and have kids and then claim that you can't support yourself on a minimum wage job no you don't have kids while you're

59:21 still making minimum wage or less you wait until you've earned enough you've learned enough and you've become valuable enough and then you go out and you and you enter into those more expensive commitments when you can afford them you don't take them on sooner and one of the reasons that people take them on sooner is because of the welfare state that is the other problem we are incentivizing people early on uh not to work with welfare in particular um the aid to uh women with children right one of the reasons that so many black men are committing crimes is because they grew up without a father right and i know there's a lot of feminists out there that want to downplay the role or significance of fathers fathers are important particularly in raising boys not as much with girls i mean i think they're important but they are more important in raising boys not just as a role model but as an authoritarian

1:00:17 figure if you want to raise law-abiding respectful men who respect law and who respect other women you need a man in the household that's a better chance of doing it not a woman she's not going to be able to control a teenage boy a father figure is going to be able to do that much better and you know you didn't have that right blacks were growing up in intact families 100 years ago not today in fact if you look back a hundred years ago the uh percentage of black children that grew up in homes without a father was almost the same as whites there was really no difference in fact i think it might have been even less i think black families might have been even more cohesive than whites but let's say it was about the same now you have this huge difference uh between the illegitimacy rates in black and white families it's why the same thing unemployment the unemployment rate 100 years ago for

1:01:12 black teenagers was about the same as white teenagers now there's a huge difference it's not racism that is responsible for the difference it's the welfare state it's the minimum wage it's all the other things that the government has done to destroy those black families and to make sure that young black males are growing up without any fathers and then they have all of these different rules and regulations that make it so much harder for them to succeed another one is occupational licensing laws we should get rid of all of these occupational licensing laws uh at least you know for the occupations that don't really need laws or licenses i mean i i um used an example earlier about a florist right i mean i mean what's the worst thing a bad florist is going to do right is give you a bad floral arrangement big deal but you know in order to be a florist to arrange flowers you need a license the government has to license you why

1:02:08 i mean supposedly it's to protect the public from a bad floral arrangement i don't need protection from that i go to a florist i don't like his flowers i don't go there again it's competition for reputation and repeat business that's the only protection i need i don't need some government to certify that somebody knows how to arrange flowers i mean i'll find that out i mean worst case scenario he i buy one you know flower basket from him oh gee i just lost 40 bucks that was a mistake i'm not going there again right or i just go to yelp or one of these places i mean how long is the guy if the guy really doesn't know what he's doing he's terrible floors how long is he going to have customers he had all these negative reviews nobody's going to go there we don't need occupational licensing laws because they disproportionately impact minorities or african americans because now it's it raises the barrier of entry to

1:02:59 occupations right look at look at uh barbers right you need you have to go to school you got to get certified why not i mean look my wife my wife's been cutting my mother's hair she's cutting her own hair i actually haven't had her cut my hair yet i haven't had haircut in almost three months but i think my wife has cut my my uh my mother's hair twice she's done a pretty good job and she's dying it i mean she's she didn't go to school for that she's just doing that why should you have to go to school to cut somebody's hair right a lot of african americans could be out cutting hair if they didn't have to get licensed why do you need to be licensed what is the big deal what is the worst thing that can happen you're going to get a haircut the guy doesn't know what they're doing you get a lousy haircut hair grows back it's no big deal we don't need the government to protect us from bad haircuts

1:03:49 hey they happen oh i got a bad haircut not going back there anymore right and if you're a barber you own a barber shop you hire somebody that's giving bad haircuts you fire them simple right and so you have a lot of people in inner cities that could just become hairdressers but they haven't been able to qualify they haven't been able to get a license they didn't go to school they didn't do all the training and you know there's a lot of irrelevant tests i've heard that like one of the uh questions on an exam right in order to become a a a barber and i'm not sure if this is still a question but i remember when i read about it a long time ago but there was a question you had to name the 50 bones in the human hand right you had to know all 50 bones i mean first of all how many people even know that there's 50 bones right but you have to memorize these 50 bones now maybe there are some people that could actually cut hair

1:04:39 pretty well but they can't memorize the 50 bones in the human hand so now they can't become a barber but who gives it to him you think i've ever quizzed a barber i go to get my hair cut i say by the way can you name the 50 bones in the human hand oh you can't do that i need a different barber who the hell cares about that what difference does it make see here's the idea here's the reality right all these people who control government right it's the barbers who are already in business that benefit from occupational licensing not the public right the people who already are in the business you see what generally happened or how you know this is the roots of these occupational licensing laws um but let's say there's a bunch of barbers and they kind of came together and they performed they they they formed a society of barbers right and they say hey let's all form a society and when you're in our society we'll

1:05:32 have various criteria and then when you remember you can put this you know like seal out on your barber shop that says hey you're a member of uh barber society of america and then so new customers who've not you know like they've never had a haircut they don't know they don't have a friend that they can ask they'll see that seal of approval and they'll know that you meet certain standards of this organization right so the organizations come together as a way for the members to you know assure the public of a certain quality of service right and now you create some kind of value to being a member of that society well then what happens is the society itself says hey you know what what if we made it illegal for people to be barbers unless they were a member of this society whoa then we can reduce competition right if we can require barbers to be a member of our society in order to cut hair

1:06:23 we can dramatically reduce the supply of barbers and then we can jack up our prices so we can all make more money if we force people to join our organization the only problem is in a free market you can't force anybody to join anything people will only join if they think it's to their economic advantage see that's when government comes in see now these guys raise some money and they go to a local politician and they say hey we want you to pass this law that says in order to cut hair in this town you have to be a member of this society right oh why should i do that well because i'm giving you all this money right and you pass this law and we're going to keep giving you money we're going to support you in your election right you just have to pass this law uh to require barbers to be a member of this organization now when the politician is going to propose the legislation he doesn't propose it

1:07:14 hey this is a a bill that's designed to allow barbers to make more money right this is the the barber income maximization act no they're never gonna label it that they're not gonna be the truth they're gonna call it the haircut the consuming protection act right where this is about protecting the public we want to make sure that when you get a haircut the guy that's cutting your hair is a certified barber and he knows what he's doing because you know otherwise you're everyone's gonna get lousy haircuts we need the government to make sure that only competent qualified people who have college degrees or two years of that all this stuff all these other criteria that you need in order to become a barber and so this guild is successful in bribing some politician under the guise of protecting the public to pass a law to limit competition so they can charge more money that's really what happens

1:08:05 now who suffers right the people who want to be barbers who can't who now don't have the education don't have the money to go to barber school or whatever it is or don't know all the bones in the human hand and a lot of this is disproportionately african-americans so get rid of all these occupational licensing laws and let the free market separate the good actors from the bad actors right now you could say maybe in certain occupations where hey i i wanna i want if i go to a heart surgeon you know i mean i wanna make sure he knows what he's doing because he could kill me right you're not going to die from a bad haircut right i mean you may be embarrassed so you wear a hat for a while and your hair will grow back but if somebody kills you on the operating table okay so you know you can make an argument potentially that there are certain occupations that can be licensed but florists barbers

1:08:56 it's ridiculous right so get rid of those laws so my point is there's all sorts of things that government has actually done over the years that are creating the economic problems that people are correctly pointing to right all the black lives matter people right when they point to these problems the problems are real but they have nothing to do with racism and they have everything to do with government laws government regulation the welfare state the war on drugs there are all sorts of things that are actually being done that can be undone right there's a lot that we could do to actually solve these problems but what we're doing now throwing more money at these organizations more government money bigger government right to supposedly stamp out a non-existent problem is not the solution it's a way to ignore the real cause of the problem while you're pretending to care and pretending to do something you're

1:09:53 doing nothing and in the meantime the actual problems are getting worse right and then all you can do is say well despite all of our best efforts there must be even more racism now than there was before and so you know what you need to send even more money to these organizations we need even more government programs we need even higher taxes we need reparations whatever it's always going to be more government because there's always going to be more racism but racism is not the problem and until we acknowledge that that's not the problem and go after the actual problem the problem gets worse but again as i've said these race-baiters these organizations they don't want to stamp out the problem they want to use the supposed racism out there and all the racism is the big boogeyman they want to use that systemic threat to to advance their agenda so they need to make sure it's still there right so if they can't scare everybody

1:10:47 into believing that racism is the reason for all these problems then they can't keep raising money they can't keep expanding their leftist agenda so they don't want to eradicate racism they actually want to blow it out of proportion and they want to use it for their own political purposes anyway that's it for today i'll be back on friday again remember we're going to get the government non-farm payroll number uh so we could have a bigger reaction to that number than we got to the adp number today that's it for now

Questions about this episode

Who speaks in "🔴 BREAKING NEWS!! Government policies destroy the economy and enable racial injustice"?

Peter Schiff (Host).

What is "🔴 BREAKING NEWS!! Government policies destroy the economy and enable racial injustice" about?

Government policies are criticized for exacerbating economic collapse and perpetuating racial injustice, as indicated by the dramatic shifts in stock market performance and skyrocketing unemployment rates amid the global pandemic. The narrative highlights the stark contrast between pre-pandemic optimism and the subsequent recession, characterized by unprecedented business closures and societal…

What is mentioned in this GLOBAL NEWS PODCAST episode?

25 people, works and ideas are mentioned, including Peter Schiff, Federal Reserve, U.S. stock market, Gold, Treasuries, Black Lives Matter. Each one on this page links to its own page with every episode that mentions it.

How long is "🔴 BREAKING NEWS!! Government policies destroy the economy and enable racial injustice"?

The episode runs 1 h 11 min; the transcript is about 13,246 words in 76 timestamped sections.

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