🔴 BREAKING NEWS!! The fear in the real market, economy is still looming

What this episode is about

The latest non-farm payroll report revealed an unexpected gain of over 2.5 million jobs in May, defying predictions of another significant job loss following April's revised total of nearly 21 million. This surprising growth occurred as more individuals were rehired than newly laid off, resulting in a decline in the unemployment rate from 14.7% to 13.3%, despite continued unemployment claims.

Key takeaways

• May's job gains defy predictions—2.5 million jobs added—a reality check that optimism can thrive amidst chaos.
• Unemployment dropped to 13.3%, but deeper issues loom: who returned, and at what cost? Not all gains are equal.
• Racial disparities in job recovery highlight complex realities: incentives matter more than perception in this economic maze.
• Government interventions may delay layoffs, but they're stamping a 'temporary fix' on a potentially ticking time bomb.
• Trump touts recovery while demanding more stimulus: is it strength or a sign of deeper economic fragility we're ignoring?

Who speaks in this episode?

• Peter Schiff (Host) · 58 min speaking

What is discussed, and when

1. 0:00 – 10:00: Federal Reserve, Donald Trump, PPP Loans, V-shaped Recovery
2. 10:00 – 20:00: Jones Act, Gold, Puerto Rico, Donald Trump
3. 20:00 – 30:00: Jones Act, Puerto Rico, Donald Trump
4. 30:00 – 40:00: Jones Act, Puerto Rico, Gulf War, Donald Trump
5. 40:00 – 50:00: Tony Timpa, Jones Act, Ubereats
6. 50:00 – 1:00:00: Tony Timpa, Capitalism, Jones Act
7. 1:00:00 – 1:00:37: Puerto Rico

Notable quotes from "🔴 BREAKING NEWS!! The fear in the real market, economy is still looming"

• The first place or to rehire them remember when you took out a loan the ppp loans payroll protection program it's only it's a grant if you don't fire anybody and if you fire people as long as you.

  about PPP Loans · at 4:13

• Right no harm no foul everything is fine if that really is the case how is the fed going to withdraw all that liquidity right because the fed put all this liquidity into the…

  about Federal Reserve · at 6:46

• Right this is massive inflation and investors still don't get that because the price of gold again was down about 30 bucks today and it was already down before the number came out but as soon as the number came out it was better than.

  about Gold · at 14:01

• This for a hundred years and that is the jones act all right the jones act was passed a hundred years ago today and i tweeted about it earlier today and it reminded me of you know.

  about Jones Act · at 17:41

• Everybody suffers a little bit i mean some americans suffer more than others people living in puerto rico like i am or people that live in hawaii or people that live in alaska they suffer more from the jonah than.

  about Puerto Rico · at 18:48

• It's not going to have any extra emissions if you put more stuff in there but the us government will not allow any more stuff to be put in there so as a result of this everything costs more you know if you want to ship.

  about Federal Government · at 26:44

• Of another situation that happened four years ago right a guy named tony timpa who was a 32 year old guy and he lived in dallas texas and he died at the hands of police right in circumstances that were almost.

  about Tony Timpa · at 42:51

• And whereas the free market would punish them and so what we really need is more capitalism and less government but what we're going to get is more government and less capitalism because we're going to take something that isn't.

  about Capitalism · at 56:46

Who and what is mentioned in this episode?

People

• Tony Timpa — Person · Comparative case-study victim · 6 mentions · first at 42:54
  Introduced to compare a similar police-restraint death to George Floyd's, arguing media attention and racial framing differ despite similar facts.
• Donald Trump — Person · Referenced political figure; subject of criticism · 5 mentions · first at 5:37
  Discussed in relation to touting strong jobs numbers while supporting more stimulus and refusing a Jones Act waiver affecting Puerto Rico's LNG sourcing.
  Place and in fact one of the ironies too is you've got donald trump is still demanding more stimulus right if the economy is so strong why do we need to stimulate it even more and in fact this is one thing.
• Winston Leonard Spencer Churchill — Person · Referenced historical figure (quote attribution) · 1 mention · first at 17:57
  Invoked via a paraphrased quote to emphasize the Jones Act's long-lasting harm benefiting few while hurting many.
  Earlier today and it reminded me of you know a quote or i paraphrased winston churchill because probably never in all of history has a law that benefited so few been in existence.

Companies & orgs

• Federal Reserve — Company · Core macroeconomic actor · 2 mentions · first at 6:50
  Central to the episode's macro thesis: liquidity injections and bond buying prop up markets, create inflation risk, and constrain future policy normalization.
• Federal Government — Company · Primary policy actor; target of critique · 10 mentions
  Discussed as driving deficits, stimulus incentives (PPP, bailouts), and protectionist laws (Jones Act) that distort markets and create unintended harms.
• Ubereats — Company · Example company in social response discussion · 1 mention · first at 40:58
  Cited as an example of corporate policy changes in response to George Floyd-era racial justice narratives (waiving delivery fees for black-owned restaurants).
  That they care and that they're not discriminating so they're going to discriminate in favor of owned businesses and give them a better deal they than they would give white owned businesses but all of this.
• Air Force — Company · Historical reference in Jones Act critique · 1 mention · first at 36:56
  Mentioned to argue that modern warfare logistics differ from 1920 assumptions; used rhetorically to downplay need for merchant marine protection.
  First of all times have changed in the last 100 years i mean 100 years ago we didn't even have an air force let alone a space force i mean we don't need the merchant marine for the next war and in fact go back to the gulf war.

Products & tech

• Gold — Product · Market indicator / recommended hedge · 3 mentions · first at 14:05
  Discussed as an inflation hedge that should benefit from Fed liquidity; the host frames sell-offs in gold and gold stocks as buying opportunities.

Concepts & topics

• Jones Act — Concept · Core topic / central policy target · 28 mentions · first at 17:45
  Presented as a 100-year-old protectionist law that increases shipping costs, harms U.S. competitiveness, and paradoxically weakened U.S. maritime capacity.
• V-shaped Recovery — Concept · Debated macro narrative · 2 mentions · first at 6:21
  The host criticizes the idea that the economy is rapidly rebounding, arguing the rebound is artificial and incompatible with Fed exit constraints.
  Why do we need to stimulate it even more and in fact this is one thing that all these v-shape recovery guys are overlooking right and i'm going to get into the stock market…
• PPP Loans — Concept · Policy mechanism in jobs discussion · 1 mention · first at 4:16
  Explained as incentivizing firms to rehire/retain workers to obtain loan forgiveness, potentially creating temporary rehiring and later re-layoffs.
• Capitalism — Concept · Advocated economic system · 2 mentions · first at 56:49
  Presented as the alternative to government-driven discrimination and inefficiency; the host argues for 'more capitalism and less government.'

Places & events

• Puerto Rico — Place · Primary case-study location · 12 mentions · first at 18:52
  Used as a central example of how the Jones Act raises costs and distorts trade, including forcing LNG purchases from Russia due to lack of compliant vessels.
• Gulf War — Event · Historical evidence/example · 2 mentions · first at 37:04
  Used as evidence that the Jones Act failed its wartime readiness rationale, citing reliance on foreign ships to supply troops.
  I mean we don't need the merchant marine for the next war and in fact go back to the gulf war right in the gulf war we had to supply all of the troops that we had in iraq and in the middle east.

Full transcript with timestamps

0:11 well if you thought the adp jobs report was a surprise the one we got today from the government the official non-farm payroll report that one was a real shocker because the expectation again was for a loss of over 7.7 million jobs in the month of may and that was going to follow the 20.5 uh million uh jobs that were lost in april in fact they did revise that month up so that now the loss for april is 20 million 687 000 jobs lost in april and so everybody was looking for another 7.7 million even after the much lower than expected uh number we got on wednesday from adp although maybe some people were looking for a smaller loss nobody was looking for a gain which is what we got we got a gain of just over two and a half million jobs in the month of may that is a record we've never gained two and a half million jobs in a single month of course we've never lost 20 plus million we set that record uh

1:19 during the prior month but we know that lots of people were laid off in in may or in april or in may rather uh probably eight to ten million people got laid off well apparently maybe 12 million people got rehired right a lot of the people who were fired in march right they must or rather in april a lot of those people were rehired in may right because we fired almost 21 people in the prior month so a lot of those people were rehired and so the net of that was that more people who had already been fired got rehired than the new people that were fired and that's why we still had all these new claims for unemployment yet the actual number of people unemployed went down right the unemployment rate went from 14.7 the expectation was for a rise to 19.8 and instead it went down to 13.3 because more people who had lost their jobs in the past got rehired and that number exceeded the number of new guys that got fired

2:27 and you know when you look at the uh the breakdown by race right this also caused a bit of a problem today given the environment that we're in right now because people noticed that the unemployment rate for blacks actually went up right it went from 16.7 percent to 16.8 i mean not a big increase but it was an increase and if you just pull out whites white unemployment went from 14.2 percent to 12.4 so again a lot of people are saying oh you see this is racism it's the white guys that got their jobs back and unemployment went up even higher uh for blacks except when you look at asian unemployment the asian unemployment rate actually went up more than the black unemployment rate asian unemployment went from 14.5 to 15.

3:20 now unless you're going to concede that there's more racism against asians than against african americans which i don't think anybody is willing to do then obviously the disparity is not because of racism there must be some other factors at play uh that are responsible for that not race and and i think one of the likely contributors is probably the african-american workers are over-represented in the types of jobs where you're likely to be paid more money in unemployment than you were paid when you had jobs so they probably had a greater incentive not to return to work and so that's probably one of the reasons uh that it was skewed that way and i'm sure a lot of the uh the people that did come back to work remember one of the reasons is because the government is paying companies either to not fire people in the first place or to rehire them remember when you took out a loan the ppp loans payroll

4:18 protection program it's only it's a grant if you don't fire anybody and if you fire people as long as you bring them back uh then you you don't have to repay the loan so there probably was a lot of pressure on a lot of businesses to rehire people that they probably don't even need but if they don't bring them back they're gonna have to repay the ppp loan so they brought them back anyway now maybe they're being optimistic and they're hoping they're going to need them but what's going to happen is when they find out they don't need them a lot of the people that were rehired are going to get re-fired because you don't have to keep these people on the books permanently in order not to have to repay the loan you just have to get them back on the books long enough to get the loan forgiven and remember there's a lot of other companies like the rep the airlines for example who got a lot of bailout

5:06 money up front on the condition that they didn't lay people off well there's a date where now they can start laying people off so i think we have a lot of artificial uh uh incentives or interference in the market we are we are spending a lot of money right that the government has these huge deficits the national debt now just went over 25.9 trillion so we're almost at 26 trillion right the deficits are exploding we are paying and we are printing a lot of money in order to prevent people from getting fired right so when you had donald trump he did a press conference today and of course before the press conference he was tweeting up a storm about how great these numbers are um but how great would these numbers be if it wasn't for these massive deficits and all this money printing that is simply postponing a lot of the layoffs that are going to happen eventually anyway in fact we may end up

6:00 exacerbating uh the number of layoffs because we may be financially weakening uh a lot of these companies uh with the incentives that that we've put into place and in fact one of the ironies too is you've got donald trump is still demanding more stimulus right if the economy is so strong why do we need to stimulate it even more and in fact this is one thing that all these v-shape recovery guys are overlooking right and i'm going to get into the stock market reaction uh in a minute but for everybody who now thinks that the worst is behind us right that the recession is over that the economy is roaring back right that we're over it now right if you really think that right that this it's over right that it was it was quick and as quickly as we went into recession we came out right no harm no foul everything is fine if that really is the case how is the fed going to withdraw all that liquidity right because the fed

6:55 put all this liquidity into the economy right created all this money based on a more substantial downturn a longer lasting deeper recession depression and to be preemptive right they just basically threw out the kitchen sink in terms of money printing right and they printed all this money and bought up all these bonds and all these corporate bonds that they now own but what if what if they panicked what if now everything is fine how does the fed withdraw that liquidity is it possible how are they going to turn around and start selling all the bonds they bought how are they going to raise interest rates when the whole supposed snapback is 100 a function of all the money they printed right so they can't withdraw the liquidity but if the recession isn't even there then even the keynesians are going to concede well i guess we're going to have to deal with inflation then i guess we're going to have rising prices

7:53 well if we're going to have a big increase in prices is the fed just going to let it happen they're not going to do anything about it they're not going to try to uh to fight it and what is that going to do to interest rates what happens to the so-called recovery if interest rates and consumer prices go up so the whole thing is impossible right to believe that we're going to have a recovery this quickly it is impossible given what that would do and what that would force the federal reserve to do which means there goes your your recovery but this is not going to be this quick recovery because people still don't understand the true nature the true condition that the u.s economy was in even before uh the recession began with the covet 19. i mean this recession began with a bang but it is not over right we're having a little bit of a bounce uh now you have some false optimism about a recovery around the corner

8:49 but the economic damage existed before kobe 19 and now it's even greater i mean so look at um in the stock market look at the the xrt which is an index of retailers the retailer index has now regained everything that are lost it's back to where it was in february before the market sold off right how is that possible that retailers are just as valuable today as they were before the recession started because before covet 19 before the recent uh looting and and uh and uh vandalism how can that possibly be because all these companies have had their earnings decimated not only their past earnings but their future earnings are in jeopardy because even after they reopen they're going to have to reopen with social distancing which is going to dramatically diminish their sales they have even more intense competition than they had before from the online retailers because a lot of the positives about you know uh buying stuff through

9:52 stores uh don't exist anymore so there's even greater incentives now for people to shop online uh than there were before a lot of these retailers have just been vandalized anyway i mean if they thought they were going to reopen they can't right because their shops don't you know have been you know all their inventory has been stolen but anyway you look at it retailers whether it's you know clothing stores malls restaurants they are in much worse position now than they were back in february when everybody was still optimistic and they thought no recession was anywhere in sight right and the political landscape i mean people still thought that trump was going to win i mean i looked at the numbers uh uh yesterday they're the lowest they've been since he's been president as far as his odds of re-election and his probability i mean he's gone from being the favorite to now being a long shot and you know i read a a an article

10:45 where people were now starting to think that oh you know we have a good chance if trump doesn't win that corporate tax rates are going to go back to where they were before trump cut them i mean that is just wishful thinking if we get president biden and we get democrats controlling the house and the senate they're not just going to restore the corporate tax rate to where it was before they're going to make it much higher number one they're going to say hey we need to make up for all these years where the corporations got away with murder right we need to we need to get back that money but the deficits are huge government spending is off the charts taxes have to go up in fact even in the unlikely event that donald trump is re-elected there's gonna have to be some tax hikes right i mean they can't do it all uh with money printing so taxes i think are gonna go up even if trump wins which he probably won't

11:36 but if biden wins they're not just gonna go back up to where they were before the deficits are much bigger now than they were before trump was elected government spending is dramatically greater now than it was before trump was elected and of course remember the government never likes to surrender all the extra government spending that takes place in a crisis right it's now the new normal so we're going to have to have much much higher taxes so the rates are going to be substantially higher at least on corporations and higher income earners than they were before trump so with all of this negative stuff right you would think that the stock market would be going down instead the stock market took this number and just took off right this was proof that it is a v-shaped recovery everything is great and the dow was up at one point over a thousand points on the day uh we only closed up about 829

12:32 so pretty big move back above 27 000 27 110 i think the dow is still down about five percent on the year s p 500 doing a lot better i think it's only down about one or two percent i'm not sure exactly but that's about it it was up 2.6 today the nasdaq made a new all-time record high highest it's ever been it's now up about 10 on the year and remember it was overpriced when it ended last year it was priced for perfection as i said on the last podcast we got the opposite of perfection yet the nasdaq is actually having a good year we're up better than 10 we're not even halfway through the year the only index that's really down is the russell 2000 which is not down nearly as much as it was it had a good day today up 3.8 it's now only down about 10 on the year i mean it was down something like 30 percent i forget the exact amount but it's had a very very big recovery even though some of those small

13:31 companies are the ones that are the most adversely affected by by what's going on but you know the stock market is acting as if everything is fine everything is great and they're ignoring the fact that the only reason the economy has come back to life is because it's on artificial life support it's not living on its own it's living off of all these government tubes that are making it possible but where is the oxygen coming from it's the fed right it's creating all this money there is a cost to that right this is massive inflation and investors still don't get that because the price of gold again was down about 30 bucks today uh and it was already down before the number came out but as soon as the number came out it was better than expected gold lost like another 20 bucks the gold stocks were down on the day but they did close near the highs of the day or right on the highs so gold stocks were generally

14:23 down about two percent uh whereas earlier in the day this morning they were down four or five percent so they managed to pair their losses but you have a lot of gold stocks that have actually gone through bear markets now there are a lot of gold stocks that have dropped by more than 20 percent uh from their highs a week and a half ago even though the price of gold is only about three percent below its high so we barely had a correction in the price of gold and we've had full-fledged bear markets in gold stocks i mean that shows you uh you know how much nervousness there is out there among investors because how quickly they they go to sell their gold stocks the minute the price of gold goes down even a tiny bit i mean that is the wall of worry that this bull market is uh is scaling you know the bond market also got clobbered today the yield on the 30-year was over 1.7 for a while but it ended up

15:13 closing at about 1.68 uh but we've been edging high remember i did the podcast a couple days ago we just got about above one and a half percent i think if we get above two percent uh that's some big resistance but if we do that you know we can have a pretty big move up to three percent which would be a big problem for the economy and i think if that were to happen the fed would have to really step up qe they would have to really uh crank up the printing presses not that they're not already doing that but they would be very very concerned about a backup and rates like that and so they would have to create even more inflation print even more money to prevent that from happening which is why gold should not be going down gold is a hedge against inflation bonds are not a hedge against inflation if you own bonds you need to hedge bonds for inflation so people that have a lot of bonds need to

16:02 hedge that with gold gold gold is a better hedge for bonds than it is for stocks because people that have a lot of bonds they are actually more vulnerable to inflation than people that have a lot of stocks people keep thinking gold is a hedge against the stock market it's a better hedge against the bark bond market but right now everybody's just thinking in terms of risk on risk off what's a safe haven what's aggressive and so gold is being looked at as a safe haven just like bonds or just like the swiss franc or the yen which we're down again today although not that substantially and other currencies were up um but gold is just getting lumped in with those assets with people not recognizing the big difference that you have with gold and you can't be bearish on gold because you're bullish on the u.s stock market because when you understand why you're bullish on the u.s stock market well

16:55 because the fed is creating all this inflation the fed is printing all this money right and artificially interfering that is all good for gold the reason the stock market is going up is the reason that gold is going to go up even more so again these sell-offs are buying opportunities uh these declines in in the gold stocks are also buying opportunities but i want to um you know leave the the topic of of the jobs numbers and i want to actually talk about the 100 year anniversary and maybe anniversary is not a good word because you know that's you celebrate something when you refer to an anniversary and so this is nothing that we would want to celebrate it's just we've had to endure this for a hundred years and that is the jones act all right the jones act was passed a hundred years ago today and i i i tweeted about it uh earlier today and and it reminded me of you know a quote or i paraphrased winston

17:59 churchill because probably never in all of history has a law that benefited so few been in existence so long yet negatively impacted so many right so many americans are worse off as a result of the jones act and there's a very small group who are better off yet the jones act has endured for a hundred years because of of politics and this is why the founding fathers were so you know worried about democracy and they call them factions and they were worried about exactly what's happened because the problem politically with the jones acts is that everybody suffers a little bit i mean some americans suffer more than others people living in puerto rico like i am or people that live in hawaii or people that live in alaska they suffer more from the jonah than people that live in other states but certainly anybody who lives on the eastern or western seaboards they're suffering uh the whole country suffers

19:09 to some extent but nobody really knows that their suffering is due to the jones act and they don't really know how much it is because all the jones acts does is it increases shipping costs right which you know and everything that we consume has to be shipped somewhere either it's shipped to us in a finished form or a lot of the raw materials get shipped around and so everything we buy costs a little bit more money because shipping costs have been artificially inflated uh by the jones act now who benefits well you have a very small number of people in the shipping industry which is a tiny industry which i'm going to get into but they have an enormous benefit and the benefits are very clear and so they are politically motivated to make sure that those benefits um continue and so you know they have a lobbying to make sure that the jones act is there whereas the the broader population uh they they

20:04 don't they don't really come together on this issue because for any one person the issue is not important enough uh for it to uh matter but for the people who benefit it's all they care about and if you go back to why we had a jones act right this was 1920 that it was enacted and the supposed impetus for this was to make sure that we had a good merchant marine in case we're in a war right that we needed the vessels to supply our troops or maybe even to to take these uh ships uh that were commercial ships and maybe we could use them in the military right we could use them in the war we could call them into service somehow and so in order to be safer right we wanted to have a big viable merchant marine during peace time in case we needed them during wartime because you know we didn't want to be beholden to foreigners right i mean what if we were there was a blockade i mean we wouldn't want to be

21:03 vulnerable to depend on having to use foreign ships so the idea is hey let's try to protect our industry from foreign competition so that we'll have a bigger more vibrant industry uh just in case we need it right so when they when they pass the jones act there there's three key provisions of the jones act right the ships have to be owned by american companies they have to be built in america right with american workers building the ships and then they have to be crewed by americans so there are three important things that the ship needs to these criteria need to be met before it's allowed to transport any commercial cargo between two u.s ports right so if you're going to pick up cargo in new york and drop it off in florida you got to do that on a jones act ship right so that's the deal so anyway this law has been in effect for 100 years and what has the effect been the u.s shipping industry

22:01 is virtually non-existent right we only have in america 98 ships actual ocean ships right the way they're defined it's you can carry a thousand tons in the ocean we only have 98 of them there are over 53 000. i got the number here 53 732 i mean maybe it's more by now but almost 54 000 ships america has 98 we have less than one-fifth of one percent of the ships that's it we build in this country our shipping industry we build about two to three ships per year right that's that's all we do right i got the

23:05 i wrote down where did that number go oh yeah china china builds 4 000 ships a year 4 000 we built two to three korea builds 2300 and i'm not talking about boats because they have other things that they built i'm looking at these big ships on the ocean korea builds 2300 a year japan builds 1600 ships right so those are real industries building ships i mean we do it for a hobby two to three ships turkey turkey builds 330 ships per year vietnam vietnam 327 ships per year america two three ships that's the industry that we're protecting it's ridiculous we got 98 ships and you know back in the year 2000 we had 193 we have fewer ships we're destroying the ships because you know they become obsolete and they get scrapped we're not even building enough ships to replace the ships that are scrapped back in 1980 we had 250 ships the industry is dying and it's the jones act that's killing it right the government said we're going to

24:24 protect the shipping industry and they destroyed the shipping industry in europe right 40 of all the merchandise that is delivered is delivered by ships 40 in america ocean liner ships in the ocean rather two percent two percent that's it that's all the cargo that moves in the u.s by water by ship now if you include the rivers right we have these big rivers and there's barges and stuff going down there yeah then it's about six percent but if you just look at chips it's two percent oh and by the way i meant to mention that you'll read a lot about you know that when all the propaganda the pro-jones act propaganda they'll say that there's forty 000 ships in the united states not 98.

25:15 yeah there's 40 000 if you count all these little teeny ships more than half of those like 60 65 percent of those 40 000 are barges that are on the rivers you know you know with curl hauling garbage and stuff like that and then you got a bunch of little tug boats in those numbers so i'm talking about real big ships on the ocean right that's the ones that we we we uh we barely have any of and and so we're not using ships and this is how it works so so let's say a uh a ship comes over and it has merchandise from europe and it drops it off at a port in new york right it can only pick up merchandise in new york if it's destined to go to another foreign country it can't pick something up in new york and bring it down to washington or bring it down to north carolina or bring it down to florida even if it's going down to those ports anyway to drop off stuff he can't pick up any additional cargo

26:13 and drop it back off so that means an american who has stuff he wants to ship down south can't put it on that boat even though there's empty space so he's got to hire a truck or he's got to put it on on a train and you know the most energy efficient right if you're trying to reduce your carbon footprint the most energy efficient way to uh ship stuff is on a boat on a ship especially if the ship is going to go between ports anyway and it's got empty space you might as well load more cargo on it it's not going to take any extra energy it's not going to have any extra emissions if you put more stuff in there but the us government will not allow any more stuff to be put in there so as a result of this everything costs more you know if you want to ship oil from the gulf of mexico to new england right it costs about six dollars a barrel to ship it to canada which is further north right so it's more it's a longer trip it

27:14 only costs two dollars so it's three times as expensive to shift stuff from uh the gulf of mexico to um uh new england than it is to ship it all the way north uh to uh to canada and so obviously this is uh hurting american industry and you know a lot of times um americans are forced to buy products from foreigners as opposed to americans because it's cheaper to get stuff from foreign sources that happens all the time in alaska and hawaii and in puerto rico you know puerto rico we we buy rice in puerto rico we buy rice from china right why are we buying chinese rice i mean there's we do have some rice in the united states but the reality is it's cheaper to bring the rice all the way over here from china than it is to bring it from the united states you know this is uh another example of this so this is i think was last year um puerto rico wanted to import some liquid natural gas and they wanted to import it from the

28:26 united states because we had a lot of natural gas the prices were low and puerto rico prebo which is the power company here um a lot of the power uh is generated based on natural gas and so we need the natural gas to power the grid and so puerto rico wanted to buy the natural gas from the united states the problem was there was no way to get it here because we don't even have a jones ax vessel that is capable of carrying liquid natural gas they don't exist right so it's impossible if you want to buy natural gas from the united states it's impossible to bring it to puerto rico now there are i forget maybe four or five hundred of these ships in the world that can do it they're just not american ships because you know it cost what i say six times as much seven times as much to build the ship in america as it does to build it someplace else so none of these ships are built here so none of them are jones

29:18 act compliant so puerto rico was trying to get a waiver because it wanted to buy this american natural gas which would have benefited the us company that was selling it and it would have benefited puerto ricans because it was a good price right so we wanted president trump to sign a waiver just a one-time waiver that said hey you're allowed to buy this natural gas from an american business we will give you a waiver so that you can put that national gas natural gas on a foreign ship because there are no american ships that even exist that can do it so obviously granting the waiver right would not cost any american jobs in fact it would help create some american jobs because now we would be buying uh american gas well anyway so trump was about to sign this bill and last minute he got bombarded with lobbyists right in particular two republican senators from alaska came up right alaska alaska is one of the states that

30:22 is most hurt by uh the jones act right because you can't transport anything to and from alaska and california for example uh because of the because of the jones act right other so they have to take things on rail or they have to use trucks to go through canada to get to america or they got to put stuff on airplanes you know we actually uh put cattle live cattle on airplanes because we we can't put them on boats uh which would be a lot more efficient i mean we're we're spending a lot of money it's like it's ironic that the the legislation was supposed to help the um the shipping industry but by destroying the shipping industry well maybe it helped the the trucking industry because now a lot of stuff that would have gone by ship goes by truck instead but you would think that alaska would be against the jones act or hawaii would be against the jones act right because they're an island right everything is

31:22 coming by ship everything in hawaii is more expensive because of the jones act right and there's no shipping in they're not building ships down there right you know so i mean everybody's cost of living is higher because of the jones act particularly in hawaii and alaska right puerto rico we don't have any senators we don't have any congressmen so we don't we're not involved in the discussions right but you've got congressmen and senators in alaska and puerto rico so why are they such strong supporters of the jones act in fact the strongest advocates for the jones act other than places like louisiana let's say where they do have a ship building industry right are the states that you would think that would be the most wanting to get rid of it the states that are suffering the most from the jones act requirement but no it's the senators in alaska and hawaii that are the strongest supporters

32:18 of the jones act and at first that would be counterintuitive it's like why would that be those should be the guys that want to get rid of it except the uh shipping lobby knows this right the shipping lobby knows that hey alaska should really want to get rid of the jones act because they're really disproportionately suffering the same thing in hawaii so what happens is the lobbyists want to really give a lot of money to the senators in those states basically to be again to be in favor of the jones act because they know that without that money they're going to be against the jones act so they're basically bribing these senators right it to sell out their own constituents right to do something that harms their own constituents just to get campaign contributions which is what's going on and i'm sure the lobbyists also say if you do not support the jones act if you say anything negative about the jones act

33:14 which is hurting your own people not only are we not going to give you any money we're going to fund your opponent we're going to find somebody else who is in favor of the jones act and we're going to fund their campaign and they're going to beat you right and so you're going to be out of office and so that's why where where the stakes are the highest right the the states that suffer the most that's where the senate uh is most in favor of keeping it so what happened was when word was out that trump was going to grant this waiver it was the alaskan senators they came in these two republicans and it's ironic it's lisa murkowski is one of them and lisa murkowski just recently came out and says she doesn't even think she can support trump right she doesn't think he should be re-elected and that that infuriated trump and trump was out there saying well i know where i'm going to be in two years i'm going to come to washington

34:01 i'm going to campaign against you anybody with a pulse just announce your running i'll endorse you right he's really pissed at lisa murkowski meanwhile he basically backstabbed puerto rico he sold out puerto rico to appease her because she was like hey my backers right i have these big donors that want uh to keep the jones act and and the thing is the waiver wouldn't have done anything right but the jones act lobbyists what they're afraid of is the camel's nose under the tent even though this one time waiver would not have you know done anything to harm uh the the profits of the jones act businesses because puerto rico was not going to buy was not is not not gonna use the u.s ship because it's impossible because the ship isn't there right so this one waiver would have done nothing right to diminish the profits of the industry but what they were afraid of is the precedent of the camel's nose under

35:00 the tent hey where there's one waiver there's another waiver and then another waiver and then another waiver so they had to shut it down they had to nip it in the bud and so even though president trump was initially ready to um to sign the waiver he ended up not doing it and so then puerto rico ended up buying the liquid natural gas from russia and was able to come here on a foreign ship so because of the jones act puerto rico was forced to buy its natural gas from russia instead of uh from the united states and in fact a lot of american businesses end up selling their products internationally or up rather a lot of american business end up buying products from foreign companies rather than american companies because it's cheaper to bring the stuff across the atlantic or the pacific than to just run it up the coast because of the high cost of using a jones act ship so it's not just higher transportation

36:07 costs all all american industry the the entire country has been rendered less productive as a result of the jones act also a dying industry that barely exists can hold on to some monopoly profits right and in fact some of these guys jones asked companies were actually convicted of um of a price fixing or racketeering with puerto rico and they had some of these guys went to jail they had to pay pay big fines because they were rigging the market and fixing prices and really screwing puerto rico even more than they were screwed anyway the whole industry is corrupt and we need to get rid of the jones act especially since the very purpose of the jones act right because we might need the merchant marine in times of war first of all times have changed in the last 100 years i mean 100 years ago we didn't even have an air force let alone a space force i mean we don't need the merchant marine for the next war

37:04 and in fact go back to the gulf war right in the gulf war we had to supply all of the troops that we had in in in iraq and in the middle east right and there were no american ships we had to rely almost 100 maybe we had one u.s ship out of the whole how many we used uh 177 i think was the number i read 177 foreign ships were used to help bring supplies to support our troops in in the gulf war right so the reason we had a jones act was to make sure in times of war we had a merchant marine that we could rely on and then we had a war we had no merchant marine because the very protectionist legislation that was meant to to make us have a vibrant shipbuilding industry is what destroyed the shipbuilding industry because it was no longer globally competitive it was protected from the competition that would have kept it vibrant and and our whole ability to have a shipping industry was destroyed

38:08 uh because of because of this legislation so i don't know you know what it's gonna take to ever get rid of it because as i said you've got this powerful lobby out there that is bribing uh the the very senators and congressmen that should be most in favor of getting rid of it and those are the ones that are getting paid uh to want to promote it and save it and then of course you also have the idea that hey it does protect some union jobs and so there's some camaraderie right all the labor unions kind of stick together and it's like hey you know we need uh to support our brethren here in the shipbuilders union and so they kind of all come together even though organized labor doesn't realize that they're barely protecting any jobs the number of jobs that are being saved in the shipping industry right is tiny compared to the jobs that are being destroyed because we have the jones act if we had

39:00 a more competitive economy right if we didn't have to use these jones act ships then a lot more jobs would be created in other areas see this is an example of the scene and the unseen right we see the bogus jobs that we have because of the jones act at least we think we do because right now obviously if we eliminate the jones act i mean uh you know these jones axe ships of course would collapse in value and uh you know and probably there would be a lot of job losses uh because our industry had been protected for so long it just can't survive anymore uh so there would be these job losses uh i think we'd have a lot more people working in shipping had we never had this protectionist legislation for the last 100 years but because we've destroyed our industry with 100 years of protectionism it's very vulnerable so if we got rid of the jones act yes there would be an immediate loss of some jobs

39:51 but then there would be massive jobs gained in other industries that are now much more competitive and because they're more competitive they can expand they can hire more people in fact what we can't see right now are all the people who are not employed because the jones act has destroyed their employment opportunities so we don't see that we see the jobs that the joe zach creates or protects but we don't see the far more numerous jobs that the jones act has prevented from coming into existence or has outright destroyed

40:32 anyway i want to um circle back again and talk a little bit more about uh the the situation regarding the george floyd and the new narrative now about uh you know how america is replete with racism and you know america as a nation needs a tone for this and we need massive increases in government spending and programs and social awareness i mean even you know ubereats came out today and and said that you know they're gonna they're not gonna charge for delivery from black owned restaurants anymore at least till the end of the year right so if you're a black-owned business and you want to deliver they're going to you know give you an advantage uh you know they want to show that they that they care and that they're not discriminating so they're going to discriminate in favor of owned businesses and give them a better deal uh they than they would give uh white owned uh businesses but all of this

41:26 uh newfound sensitivity to this rampant uh systemic racism has to do with the fact that george floyd who happens to be black died at the hands of police two of whom out of four half of the police were white right because if you look at those four guys and they've all been charged now two of them are white one of them is asian and one of them is is black now i mean he's kind of light-skinned black so i think he he could be a mixture but he i think he identifies as black but anyway so let's say he's black but these four guys two of whom are white kill an african-american man and because the african-american man is black it's just assumed that this was racially motivated and the reason that george floyd is dead is because he's black right and that's because black lives don't matter and that's why the police were so reckless either they just were negligent or they deliberately killed him because he's black and because his life

42:23 doesn't matter and this incident caught on film is proof right of what we've all been in denial of that black lives don't matter and that it's not just the police but it's all aspects of american society this is just the latest example for all to see and now we all have to you know have a national effort to do this and the reason i want to bring it up again is because i happen to look today at a video of another situation that happened four years ago right a guy named tony timpa who was a 32 year old guy and he lived in in dallas texas and he died at the hands of police right in circumstances that were almost identical to the circumstances surrounding george floyd i mean almost identical the main difference was that tony timpa was white right george floyd was black and you can google this on youtube and you can see uh the um what happened in fact i watched the entire 40 minutes of raw footage

43:32 and i i would you should read that if i mean watch the whole thing if you really want to see what happened because i initially watched a much shorter version and that one really really made the police look bad not that they weren't bad but if you just saw you know a smaller cut and this was all from the the the webcam right that the police had or their their their their uh that they wear their body camera right so the police had this footage of this guy anyway and i'm gonna i'm gonna go over the the the circumstances so 32 year old guy um never been in trouble with the police i mean 30 he he had he did get a drunk driving at one point dwi he was in an accident nobody was killed and he banged up his own car got a suspended sentence but he had never been in prison right uh whereas george floyd had been in prison multiple times i mean some of them were drug offenses but the most recent uh uh jail was for uh

44:32 armed home invasion where he held an african-american woman at gunpoint and ended up going to jail for for five years so i mean he's not the gentle giant that he's being uh portrayed as not that i'm saying that he deserved to be killed but the point is this guy had had never committed any crimes never been to jail at all right he's married he's you know he's got a eight-year-old boy and he drove you know he went to drove his mercedes uh and he ended up you know getting into a sketchy area and uh this guy was a schizophrenic so he had a psychological condition but he wasn't taking his meds and i think he was a little paranoid and he was also doing coke right because according to the autopsy he had cocaine in his system so what happened is the guy got nervous and he got paranoid right he he was you know he went to like a i was in an adult bookstore or a sex shop or something weird like that in some

45:25 sketchy neighborhood and he got paranoid so he called 9-1-1 the guy called the cops himself right now before the cops got there he got paranoid and he ran out into the street very busy street and the security guards that worked at this adult shop got worried and they went and they they subdued him and they cuffed him right they put handcuffs on him supposedly to to protect him from being killed in traffic then the police that tony timpa called show up and he's already in cuffs right so now the police take over and they they call the paramedics right but in the meantime they now pin him to the ground right uh face down just like um uh floyd was and the officer basically has his knee on his on on his back and his dirt and and they actually they they hog tied uh his his feet together and they he's cuffed and they're they're they're pushing him down to the ground and before they pushed him down there he

46:30 was you know kind of moving around he was trying to get up and they were preventing him from from getting up now they are restraining him for 14 minutes the entire time that they are restraining him the guy is screaming for his life please let me up please don't kill me don't kill me please please over and over again screaming and he's afraid he's gonna die now the policemen are reassuring him you're not gonna die you're gonna be okay what are you on what did you take um and you know when i first watched the shorter version i was really really angered because you see the policemen they're actually laughing i said later on it you know he the guy stops moving he passes out he actually dies they don't know that they think he falls asleep and after a while when he's not moving they're like you know what happened to him i think he's asleep you know um but then when the paramedics arrive on the scene which is now about 14

47:27 minutes that's when they finally get off of them they didn't even you know they didn't even stop restraining them even though he wasn't moving they kept restraining them the same thing they did with with george floyd and so the paramedics come and they they try to roll them over to put them in the ambulance and that's when they they're like they now they're worried and one guy actually says god i hope i hope we didn't kill him right and and and then the other guy's like what do you mean we like uh you're the one that you know so and they they kind of laugh about it right and you know when i first saw them laughing i mean god they think this guy might be dead and they're laughing but it became obvious to me when i watched the whole thing at that point they really tried to help him originally and they didn't think he was dead that's why they were kind of joking because they were pretty sure he was alive

48:11 it wasn't until he got into the ambulance and the and the paramedics are like this guy's not breathing and then nobody's laughing and then they're trying to save his life they're trying to resuscitate him but they weren't able to do it and so he he died right and so the the autopsy that they performed uh said that it was a homicide i'm reading i wrote it down here cause of death sudden cardiac death due to toxic effects of cocaine and the psychological stress associated with physical restraint right so his death was ruled a homicide three of the five policemen were indicted by a grand jury for a crime but they were indicted for a misdemeanor not not even a felony not even like manslaughter third degree mortar they were indicted for a misdemeanor remember the guy died after being restrained by fort for 14 minutes caught on film uh and it was a misdemeanor but then the charges were dropped they didn't

49:20 even stand trial for the misdemeanor they didn't have to plead guilty to the misdemeanor the charges were dropped and then on top of that they got their jobs back on the police they got reinstated uh by the police so this is my whole point right this story never made it out of dallas it never became a national story right a guy killed by police and the policemen suffered no consequences right and imagine what would have happened four years ago right if tony timpa had been black everything else had been exactly the same right no difference the exact same circumstances just changed one thing just make tony temple black instead of white this would have been a national story this would have been all we were talking about how can these racist white cops be laughing as they murdered an african-american right this shows you how black lives don't matter this black life mattered so little that they were laughing about it as he died

50:25 they would be saying this is murder this isn't an accident they deliberately held him down they kept his knee on him for 14 minutes even though he's screaming and begging for his life and saying don't kill me these racist cops killed him anyway when that's not what they did in fact you know when i read a little bit about why the cops again were restraining him they were afraid that he was going to run into the road and and maybe get run over and get killed and they didn't want that to happen they thought they would be blamed that the guy in their custody ran into the street and got run down by a car but obviously i think that they chose the wrong way to restrain him i mean i don't know why didn't they just put him in the back of a police car and shut the door uh you know maybe they just assumed the ambulance would get there sooner i don't know you come up with all kinds of reasons but to me they appeared negligent the

51:14 cops maybe they were young maybe they they should have been better trained i mean were they just bad guys maybe i don't know but all of the arguments that are being made now about the four officers uh that killed george floyd you could have made all those arguments even stronger given the laughter i mean could you imagine people laughing as somebody is dying right so i think these circumstances would have even been worse right as far as the black community would have been concerned about how much this proved that racist police are out there and that that black lives don't matter but to me what we're seeing now shows you exactly how much black lives do matter because here when you have a black person who is killed by police everybody wants justice for this guy and his family everybody wants these officers to be prosecuted to the fullest extent of the law they don't want him just fired they want him in jail for a long long

52:17 time yet when you had a group of officers basically do the same thing to a white guy there was no demand that there would be justice for his family or him there is no demand that the police be held accountable for what they did no it's just it's an obscure event now part of it is because the media ignored it right i mean maybe there was an uproar a little bit in dallas i don't know uh but it didn't go beyond there and that's because the media doesn't care about those stories right if a white guy is killed by white policemen that's not news they don't care about police brutality but if it's a black guy and now they can make it a racial issue that's the story that's what they want they wait for these kind of stories to exploit them and then you know you have this whole cottage industry out there the black lives matter the antifa they are waiting for this to happen right and it's going to happen

53:10 right if policemen kill civilians right i mean as a percentage of all the arrests and all the encounters it's still small but you have all these policemen all over the country and sometimes people get killed and sometimes those people are black it's gonna happen it doesn't mean that they're killed because they were black this guy tony timpa he wasn't black he was as white as you could be yet he was killed his death was ruled a homicide so when you go back and see it's not just because he was black that's the whole narrative right now right that it only happened because he was black and this proves that we're a race society well it doesn't right the police are equal opportunity uh abusers when it comes to potentially use of excessive force they're as likely to use it on a white guy as they are a black guy right so it's not race but they are making this a a racial issue but again i would just

54:08 encourage anybody out there to go online and just just check this out and and and just imagine and especially if you can find a shorter version there's just like four or five minute clips that don't show all of the you know the initial part where you know the the officers uh you know show that they're they're they're concerned with this guy and they're trying to help him right if you skip all that and just go to the later part where he's really screaming and then he dies and they start laughing if you just look at that little part it's much worse than when you go back uh to the very beginning and see how it all started but you know the there would have been a there would have been an uproar there would have been a furor over that uh and so what i am trying to do by bringing it up i'm not trying to diminish what happened to george floyd that's still an awful tragedy uh that he died and he

55:00 shouldn't have died and the policeman uh should have taken better care of him just like the policeman probably should have taken better care of tony timpa and had they taken betty care of him he probably wouldn't die yeah there were other extenuating circumstances he was on cocaine george floyd was doing something he was having trouble breathing anyway had a heart condition so there were some extenuating factors where if george floyd and tony timpa had been totally healthy and not taking drugs then what the police did probably wouldn't have resulted in their deaths but because they had some other circumstances that's exactly what happened and so the purp the point is it can happen to anybody it doesn't matter what color you are and so if we're gonna make an issue of it at all it should be one about the police need better training right uh they need to have better procedures uh or or whatever it's about reforming

55:51 potentially the police department to protect everybody equally right that to protect white people who may be killed because of negligence or excessive force and black people and hispanics and asian americans and not try to use this to advance an agenda that really has at its very core socialism that's what they're trying to do they're trying to push a socialist big government agenda on us by by introducing it under the guise of racism we need to stamp out racism how do we do that by making government bigger by making government more powerful by having all these programs and i talked at length on my last podcast and in fact we pulled that part out and we put up a clip of my last podcast where we just focused on these issues but the point that i made on that podcast it was the government policy is rewarding companies for discriminating and whereas the free market uh would punish them and so what we really need is

56:53 more capitalism and less government but what we're going to get is more government and less capitalism because we're going to take something that isn't racial at all and we're going to pretend it's racial and then because it's racial we're using that as uh the reason why we need all these additional government programs that are basically going to result in even greater disparities than exist today between the african-american community and the larger population we're just going to drive those disparities and make them worse with the additional laws and regulations and programs that are going to be enacted right that instead of helping them will end up hurting them which again this is like everything i mentioned the jones act right everything the government does the the um consequence is the opposite of the intent the intent of the jones act is to have a stronger domestic shipping industry as a result

57:54 the domestic shipping industry is destroyed the whole idea was we need to have a merchant marine that we can rely on in times of war and then we have a war and we have to we're completely dependent on foreigners because we have no domestic ship industry because we destroyed it by trying to protect it and then all of the ancillary problems that now happen because we have a less of a competitive economy because transportation costs are artificially inflated that affects all american businesses even those that are not involved in shipping and so everybody suffers and the same thing happens with all of these laws that are designed to stamp out racism or stamp out discrimination we end up getting more discrimination we end up hurting most the very people that were intending to help and the same thing is going to happen by trying to take this issue and make it into something racial when it's not in fact if you assume it's

58:47 racial just because uh the person who dies is black and the people who kill them are white if you simply assume that that is racial just based on the races of the individuals then that is being racist right if you without any evidence whatsoever if you just jump to a conclusion based purely on race right that's all you're doing is you're you're making your decisions based on the races and no other information and now you're saying that it was racially motivated then that's racist so why don't we get beyond racism right and get to the core of the matter get to the real economic problems that the government is doing that's what people have to worry about it's government not some racist boogeyman it's big government that's what uh the african-american community needs to worry about get government off your neck it's the government's foot that is suffocating the black community and not just the black community the

59:40 entire nation is suffocating under the weight of the government so let's remove that weight let's make government smaller and let's make the economy freer and bigger anyway that's it for now i'm not going to get to the the questions today because i you know i already spoke for about an hour uh so i'm going to do that uh on another podcast by the way the next time i do one of these podcasts i will be back in connecticut i am flying home uh from uh puerto rico to uh connecticut or flying not home i'm home in puerto rico i'm gonna be heading uh to my former home uh my now summer home in connecticut uh for the summer not really how not sure how long i'm gonna be there kind of depends on the schools and how they reopen uh but the next time i do a podcast i will be uh broadcasting uh from connecticut so have a great weekend everybody and bye for now

Questions about this episode

Who speaks in "🔴 BREAKING NEWS!! The fear in the real market, economy is still looming"?

Peter Schiff (Host).

What is "🔴 BREAKING NEWS!! The fear in the real market, economy is still looming" about?

The latest non-farm payroll report revealed an unexpected gain of over 2.5 million jobs in May, defying predictions of another significant job loss following April's revised total of nearly 21 million. This surprising growth occurred as more individuals were rehired than newly laid off, resulting in a decline in the unemployment rate from 14.7% to 13.3%, despite continued unemployment claims.

What is mentioned in this GLOBAL NEWS PODCAST episode?

14 people, works and ideas are mentioned, including Jones Act, Puerto Rico, Federal Reserve, Federal Government, Tony Timpa, Donald Trump. Each one on this page links to its own page with every episode that mentions it.

How long is "🔴 BREAKING NEWS!! The fear in the real market, economy is still looming"?

The episode runs 1 h 1 min; the transcript is about 10,777 words in 63 timestamped sections.

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