WEBVTT 1 00:00:00.080 --> 00:00:02.919 This will likely be one of the least popular episodes 2 00:00:02.960 --> 00:00:06.480 I've ever done, but doesn't matter. When people are lying, 3 00:00:07.040 --> 00:00:11.000 someone's got to tell the truth, unpopular or not so recently. 4 00:00:11.160 --> 00:00:16.960 In fact, over the past forty eight hours, AOC, Alexandrio 5 00:00:17.079 --> 00:00:22.320 Casio Cortez and Annapoli and Luna have decided to tag 6 00:00:22.359 --> 00:00:26.440 team the credit card industry. Their proposal is to cap 7 00:00:26.719 --> 00:00:31.079 interest rates at ten percent annually. Now many of you 8 00:00:31.079 --> 00:00:33.840 already know, but I used to be a private mortgage lender, 9 00:00:33.880 --> 00:00:37.359 so this is right up my alley, and I figured, Hey, 10 00:00:38.320 --> 00:00:40.640 no one's going to defend the banks. How about I 11 00:00:40.719 --> 00:00:45.119 do it? How about I piss off everybody and explain 12 00:00:45.159 --> 00:00:49.359 to you why you're wrong? Well, where do I begin? 13 00:00:49.479 --> 00:00:52.600 First off, AOC and Anapolio and Luna are probably the 14 00:00:52.640 --> 00:00:56.479 two most attractive congressional members. Despite the fact that AOC 15 00:00:56.640 --> 00:01:00.399 appears to be hitting the wall if you will, well, 16 00:01:00.520 --> 00:01:03.200 but the fact that it's them tag teaming and it's 17 00:01:03.200 --> 00:01:06.799 from its bipartisan should give you real cause for concern. 18 00:01:07.079 --> 00:01:10.959 Very attractive ladies are pushing this, especially when it's already 19 00:01:10.959 --> 00:01:13.799 something that's very palatable to people. It's actually palatable on 20 00:01:13.879 --> 00:01:17.120 both sides, which is even more concerning because economic understanding 21 00:01:17.200 --> 00:01:20.280 is becoming more and more rare. But they are trying 22 00:01:20.319 --> 00:01:23.879 to pitch this concept. And the reason it's palatable is 23 00:01:23.920 --> 00:01:28.159 that on the left, they hate the banks, they hate capitalism, 24 00:01:28.519 --> 00:01:31.200 they love the government. Why would they not want price controls. 25 00:01:31.200 --> 00:01:33.719 They want price controls on rent and food and housing 26 00:01:33.760 --> 00:01:36.000 and everything else. Why would they not want price controls 27 00:01:36.040 --> 00:01:39.200 on credit cards? Of course they would, So that's not surprising. 28 00:01:39.439 --> 00:01:41.519 What's more surprising is that the right wing is now 29 00:01:41.519 --> 00:01:43.799 on board with this, led by Donald Trump, who talked 30 00:01:43.799 --> 00:01:46.719 about this on the campaign trail, led by people like 31 00:01:46.760 --> 00:01:52.319 Tucker Carlson, which are increasingly popularizing the pushback against what 32 00:01:52.359 --> 00:01:56.840 they describe as usury. Now, usury is biblically speaking, and 33 00:01:56.879 --> 00:01:59.719 from a religious perspective, you can argue that perhaps this 34 00:01:59.760 --> 00:02:02.280 is and that you should ban usery and you should 35 00:02:02.560 --> 00:02:04.920 never lend money, and you should never expect interest if 36 00:02:04.920 --> 00:02:08.120 you do lend money. Okay, if at your religious perspective, 37 00:02:08.199 --> 00:02:11.639 then I grant you that I can't argue against your religion. 38 00:02:11.680 --> 00:02:14.879 You're more than welcome to never lend and never borrow 39 00:02:15.120 --> 00:02:18.520 and charge interest or pay interest. I permit that from 40 00:02:18.599 --> 00:02:22.400 my vantage point, I as a free market capitalist, I 41 00:02:22.439 --> 00:02:24.520 believe that it ought to be legal, and then I 42 00:02:24.520 --> 00:02:29.000 believe that you you should have no say so as 43 00:02:29.039 --> 00:02:31.319 to whether or not I want to do that amongst 44 00:02:31.360 --> 00:02:36.479 consenting adults. So that's my opening salvo here. Lots of 45 00:02:36.560 --> 00:02:40.319 key factors here, but one major one is that there's 46 00:02:40.319 --> 00:02:44.439 this misconception that the banks just rake in money because 47 00:02:44.439 --> 00:02:49.240 they've been increasing their credit card interest rates. Now you 48 00:02:49.319 --> 00:02:52.599 got to understand first and foremost, that banks take money 49 00:02:52.639 --> 00:02:56.039 from the Federal Reserve. They get lent money at the 50 00:02:56.080 --> 00:02:58.800 Fed Funds rate, which used to be about a quarter percent, 51 00:02:59.000 --> 00:03:01.240 it's now up to four point two five percent. That 52 00:03:01.280 --> 00:03:03.400 means that they are paying more for the capital that 53 00:03:03.439 --> 00:03:06.080 they get from the Federal Reserve. Sometimes they also lend 54 00:03:06.080 --> 00:03:10.240 out just savings that they've received from depositors, but unfortunately, 55 00:03:10.280 --> 00:03:13.039 that's not really how the banking industry works these days. 56 00:03:13.080 --> 00:03:15.680 They actually borrow and then lend out, and then they 57 00:03:15.800 --> 00:03:18.960 keep a bit of the spread. But if you're borrowing 58 00:03:19.000 --> 00:03:20.960 money at four point twenty five percent, well you've got 59 00:03:20.960 --> 00:03:23.199 to charge a heck of a lot more than that 60 00:03:23.520 --> 00:03:27.159 to make a profit, because when someone borrows money from 61 00:03:27.199 --> 00:03:30.840 you on a credit card, it's unsecured. Now, this is 62 00:03:31.000 --> 00:03:33.400 very important. This is kind of rudimentary for those that 63 00:03:33.439 --> 00:03:36.400 already understand this stuff, but it's important to explain every 64 00:03:36.479 --> 00:03:38.439 layer of this so you can understand why do they 65 00:03:38.560 --> 00:03:40.879 charge so much in interest. If someone is looking to 66 00:03:40.919 --> 00:03:44.319 borrow money and they come to you and they say, hey, hey, Clint, 67 00:03:44.560 --> 00:03:47.960 I'd like to borrow ten grand I say to myself, 68 00:03:48.240 --> 00:03:50.240 all right, no, let's make it a thousand, just easy math. 69 00:03:50.919 --> 00:03:53.520 I say to myself, Okay, well, I don't know you 70 00:03:53.520 --> 00:03:55.840 from Adam. Let me run your credit Okay, your credit 71 00:03:55.840 --> 00:03:58.840 score is six p forty, you know, not very good. 72 00:04:00.039 --> 00:04:03.639 And you say, well, I want to borrow a thousand 73 00:04:03.680 --> 00:04:06.400 bucks from you, and I'll pay you back eleven hundred 74 00:04:06.439 --> 00:04:07.879 at the end of the year. Now you might think 75 00:04:07.919 --> 00:04:12.400 to yourself, well, one hundred bucks for lending them a thousand, 76 00:04:12.400 --> 00:04:15.520 that's a decent return on investment. To get a one 77 00:04:15.599 --> 00:04:18.040 hundred bucks for that thousand that I delayed the use 78 00:04:18.079 --> 00:04:21.120 of for twelve months, I could. I don't need this 79 00:04:21.160 --> 00:04:24.480 thousand bucks right now. That's worth considering. But then you 80 00:04:24.519 --> 00:04:27.279 have to consider the fact that this is unsecured, and 81 00:04:27.319 --> 00:04:29.360 that this person already has a track record of not 82 00:04:29.360 --> 00:04:32.040 paying back their loans based off their credit score. So 83 00:04:32.680 --> 00:04:35.319 then you have to consider is that hundred bucks in 84 00:04:35.360 --> 00:04:38.319 profit worth that risk, given that if they decide not 85 00:04:38.360 --> 00:04:40.360 to pay me back at all, I don't get the 86 00:04:40.480 --> 00:04:43.879 hundred bucks and I lose my thousand. Now that's a 87 00:04:43.920 --> 00:04:47.120 big risk that you're asking me to take on, isn't it. 88 00:04:47.120 --> 00:04:50.680 It is so they could just file bankruptcy and poof, 89 00:04:50.879 --> 00:04:53.360 my debt is gone. I'm no longer I'm never gonna 90 00:04:53.360 --> 00:04:55.079 be able to reclaim that money from them. It is 91 00:04:56.160 --> 00:04:59.959 gone vanished. Big, big risk. So if you're gonna lend 92 00:05:00.279 --> 00:05:03.319 to you in an unsecured fashion where there's no collateral, 93 00:05:03.360 --> 00:05:05.800 there's no house that I can foreclose on to try 94 00:05:05.800 --> 00:05:09.160 and recoup my investment, you better make sure that this 95 00:05:09.240 --> 00:05:12.240 person is credit worthy. So what does it mean if 96 00:05:12.279 --> 00:05:14.759 I can only charge ten percent to them, I'm not 97 00:05:14.800 --> 00:05:17.439 gonna lend money to that guy because that hundred bucks 98 00:05:17.519 --> 00:05:20.800 is not worth the risk of losing my thousand. Now, 99 00:05:21.079 --> 00:05:24.240 if I can charge that same guy three hundred bucks 100 00:05:24.279 --> 00:05:27.480 at the end of the year, I might then think 101 00:05:27.519 --> 00:05:31.240 to myself, I think he's getting his life back in 102 00:05:31.360 --> 00:05:33.120 order based off of his income. He just got a 103 00:05:33.160 --> 00:05:35.480 new job, I do think he's going to be able 104 00:05:35.480 --> 00:05:37.560 to pay me back, so I'm going to take that risk. 105 00:05:37.680 --> 00:05:39.759 I'm going to lend him the one thousand. Hopefully I'll 106 00:05:39.759 --> 00:05:41.360 get my thirteen hundred at the end of the year. 107 00:05:42.279 --> 00:05:44.639 Maybe I will, maybe I won't. But if I do 108 00:05:44.720 --> 00:05:48.759 that enough times, maybe five people perform well one doesn't, 109 00:05:49.199 --> 00:05:52.279 then I still end up making some profit. That's the 110 00:05:52.279 --> 00:05:54.319 calculus that a bank has to make, and that was 111 00:05:54.360 --> 00:05:56.600 what my job was as a private money lender, was 112 00:05:56.639 --> 00:06:00.000 to make that calculus for my investors. It's not easy, 113 00:05:59.839 --> 00:06:02.120 but that's what I got paid to do. The key 114 00:06:02.399 --> 00:06:06.319 to understand here is that banks with credit cards lose 115 00:06:06.519 --> 00:06:08.879 a lot of money because a lot of people do 116 00:06:08.920 --> 00:06:11.639 not pay their credit card loans and then they end 117 00:06:11.720 --> 00:06:15.720 up defaulting and filing bankruptcy and then the bank gets 118 00:06:15.720 --> 00:06:20.279 wiped out. So when they charge fifteen percent, you think 119 00:06:20.319 --> 00:06:23.399 to yourself, well that's way too high. But when you 120 00:06:23.439 --> 00:06:27.560 consider the fact that they're losing hundreds or millions of 121 00:06:27.560 --> 00:06:31.399 dollars in unsecured lines of credit that are defaulted upon, 122 00:06:31.600 --> 00:06:34.519 well you have to make that up somewhere. So essentially 123 00:06:34.800 --> 00:06:37.040 they get subsidized, if you will, by the people that 124 00:06:38.079 --> 00:06:41.480 do perform on those loans at those higher interest rates. 125 00:06:41.680 --> 00:06:43.839 But the other side of this thing that nobody seems 126 00:06:43.879 --> 00:06:47.240 to consider, which is obviously true, is that you don't 127 00:06:47.319 --> 00:06:50.920 have to pay the bank any interest at all if 128 00:06:50.959 --> 00:06:55.120 you just pay your fucking your credit line off every month, 129 00:06:55.600 --> 00:06:58.399 which I've done for twenty years straight, which a lot 130 00:06:58.439 --> 00:07:01.439 of people do. And as a consequence of that, not 131 00:07:01.480 --> 00:07:04.120 only do I not pay the bank any interest, but 132 00:07:04.240 --> 00:07:08.759 I also make like cash back rewards and you can 133 00:07:08.759 --> 00:07:11.920 get miles on different ones like for those that are responsible. 134 00:07:11.959 --> 00:07:16.199 Credit cards are a godsend. I've made an insane amount 135 00:07:16.240 --> 00:07:19.680 of money by borrowing money via credit cards. For most people, 136 00:07:19.959 --> 00:07:22.720 that's a that's a huge asset to have, not to 137 00:07:22.759 --> 00:07:27.560 mention the security of being able to transact online and 138 00:07:27.600 --> 00:07:31.040 if there's fraud, getting chargebacks you know, covered, and things 139 00:07:31.040 --> 00:07:33.360 of that nature like these are all these are all 140 00:07:33.360 --> 00:07:38.439 benefits of this technology, and especially with the Internet being 141 00:07:38.560 --> 00:07:42.160 such a commonly used marketplace, it's really advantageous to have 142 00:07:42.519 --> 00:07:45.959 some light of credit and some big bank institution that 143 00:07:46.000 --> 00:07:48.120 will deal with fraud and things of that nature for you. 144 00:07:48.639 --> 00:07:52.600 So I like having that option. So that's that's kind 145 00:07:52.639 --> 00:07:55.600 of from my vantage point that's why it's a benefit. 146 00:07:55.879 --> 00:08:00.639 A lot of people say, well, who cares about what? Yeah, 147 00:08:00.680 --> 00:08:03.279 sure you've handled it well, but what about the people 148 00:08:03.279 --> 00:08:08.199 that don't, Well, they shouldn't be borrowing. I mean, have 149 00:08:08.319 --> 00:08:12.879 we just abandoned personal responsibility entirely? Then some people will say, well, 150 00:08:13.040 --> 00:08:16.279 what about the people that are desperate and they borrowed 151 00:08:16.279 --> 00:08:19.519 when they shouldn't have because they had no other choice? Okay, 152 00:08:19.519 --> 00:08:23.319 well what is the alternative? They say, Like, I've got 153 00:08:23.319 --> 00:08:25.279 some replies on this post I made this morning, and 154 00:08:25.319 --> 00:08:30.199 people are saying, well, what if like their father died 155 00:08:30.600 --> 00:08:32.679 and they have to bury them and they don't have 156 00:08:32.759 --> 00:08:35.519 the money to do so, so they go to a 157 00:08:35.559 --> 00:08:37.639 credit card company and then they put themselves into debt 158 00:08:37.639 --> 00:08:40.440 that they can't get out of. Well, that's sad, but 159 00:08:40.480 --> 00:08:42.919 at the end of the day, they still made that choice. 160 00:08:43.159 --> 00:08:45.399 And the alternative is they don't have the money to 161 00:08:45.480 --> 00:08:51.559 bury their father. So is it more humane to tell 162 00:08:51.600 --> 00:08:54.720 them you're out of luck? You can't you can't get 163 00:08:54.720 --> 00:08:57.000 a credit card loan because you couldn't qualify because the 164 00:08:57.039 --> 00:08:59.080 cap is now ten percent, so the bank won't lend 165 00:08:59.080 --> 00:09:01.120 you any money at all. Is that is that a 166 00:09:01.159 --> 00:09:06.200 better outcome? Or is the better outcome. Okay, well they 167 00:09:06.200 --> 00:09:09.039 can borrow the money. Sure, they can't afford it to 168 00:09:09.159 --> 00:09:11.080 pay for the burial at the time they borrow the money, 169 00:09:11.279 --> 00:09:13.960 hopefully they're able to pay it off. And if they aren't, 170 00:09:14.200 --> 00:09:17.279 I mean, worst case scenario, they file bankruptcy and they 171 00:09:17.320 --> 00:09:20.559 deal with seven years of bad credit. I mean, you 172 00:09:20.639 --> 00:09:23.080 have to decide here. This is not like, this is 173 00:09:23.120 --> 00:09:26.320 not choosing between good and bad. This is kind of 174 00:09:26.960 --> 00:09:30.559 dealing with the circumstances of everybody's lives. The other aspect 175 00:09:30.600 --> 00:09:33.399 of this that really bothered me is people were saying, well, 176 00:09:33.720 --> 00:09:38.159 banks shouldn't be lending to people without good credit. It's like, okay, well, 177 00:09:38.159 --> 00:09:42.039 then how about the young They don't have any credit 178 00:09:42.080 --> 00:09:45.039 at all. But if you're asking a banking institution to 179 00:09:45.120 --> 00:09:47.559 take on the risk of lending to a young person, 180 00:09:47.679 --> 00:09:50.559 given that their risk is significantly higher because young people 181 00:09:50.559 --> 00:09:53.679 in particular don't know how to use credit, because our 182 00:09:53.960 --> 00:09:57.559 public education doesn't give them any sort of schooling on hey, 183 00:09:57.600 --> 00:09:59.200 this is what you do, this is what you don't do, 184 00:09:59.480 --> 00:10:01.240 which is a true but at the end of the day, 185 00:10:01.240 --> 00:10:03.320 you still have access to the internet. You still could 186 00:10:03.320 --> 00:10:05.320 have you could have self educated you could have. Your 187 00:10:05.360 --> 00:10:08.360 parents should have been teaching you this stuff, as mine did, thankfully. 188 00:10:08.480 --> 00:10:11.679 But regardless, if you cap it at ten percent, any 189 00:10:11.720 --> 00:10:14.519 banking institution would be out of their mind to lend 190 00:10:14.720 --> 00:10:18.759 money to an eighteen nineteen twenty year old, especially given that, 191 00:10:19.000 --> 00:10:21.960 like they just got a job. Maybe maybe they have 192 00:10:21.960 --> 00:10:24.799 a job. Most of them probably don't. Are you gonna 193 00:10:24.840 --> 00:10:27.919 lend them money? No, certainly not. Okay, Well they have 194 00:10:27.960 --> 00:10:30.039 a job, but they have no credit history. This is 195 00:10:30.039 --> 00:10:32.120 a This is like, imagine that this is a real 196 00:10:32.720 --> 00:10:36.799 go getter. Some kid that's top of his class, gets 197 00:10:36.799 --> 00:10:39.440 a job right out of high school. He's making decent money, 198 00:10:39.879 --> 00:10:43.720 he wants to do XYZ. The bank looks and he says, 199 00:10:43.840 --> 00:10:46.679 you don't have any credit score. So sure, your income's decent, 200 00:10:46.720 --> 00:10:50.039 but it's still not the risk. It's still not worth 201 00:10:50.120 --> 00:10:53.080 the risk to lend to someone at your age. So 202 00:10:53.240 --> 00:10:55.080 how do you how do you ever get your first 203 00:10:55.240 --> 00:10:57.279 step on the credit ladder by which you might build 204 00:10:57.360 --> 00:10:59.039 up that credit score to be able to borrow money 205 00:10:59.039 --> 00:11:00.840 for a mortgage to then invest in the real estate, 206 00:11:00.879 --> 00:11:03.799 to get your foot on that wrong of the ladder 207 00:11:03.919 --> 00:11:08.279 of the economic ladder. You're out of luck. Anapolion, a 208 00:11:08.360 --> 00:11:11.200 Luna and AOC said that we shouldn't be able to 209 00:11:11.240 --> 00:11:15.159 charge more than ten percent. Good luck bud. So that's 210 00:11:15.240 --> 00:11:18.000 just one of the unintended consequences. Then there's also the 211 00:11:18.080 --> 00:11:21.840 unintended consequences of pulling out the last lifeline from those 212 00:11:21.879 --> 00:11:25.240 that are poor. If you are in a position where 213 00:11:25.320 --> 00:11:29.360 you just need a bridge, just a little stop gap. 214 00:11:30.120 --> 00:11:33.679 Not all poor people with bad credit are going to 215 00:11:33.720 --> 00:11:38.000 not pay off that loan. Like sure, many of them won't, 216 00:11:38.120 --> 00:11:41.039 and perhaps the bank shouldn't be lending money to them, 217 00:11:41.279 --> 00:11:43.480 and certainly they shouldn't be borrowing it if they if 218 00:11:43.519 --> 00:11:46.840 they ultimately can't pay it back. But what about the 219 00:11:46.840 --> 00:11:50.240 poor people that will actually do the right thing and 220 00:11:50.279 --> 00:11:52.559 pay off that loan? Do you want them to just 221 00:11:52.600 --> 00:11:55.000 have that option ripped away from them? So then what 222 00:11:55.080 --> 00:11:56.919 do they turn to. Do you think that because you've 223 00:11:56.960 --> 00:11:59.000 kepped interest rates at ten percent, that there's going to 224 00:11:59.000 --> 00:12:01.679 be no lending op to people like that? Or do 225 00:12:01.720 --> 00:12:04.399 you think that sharks will circle? Do you think that 226 00:12:04.480 --> 00:12:07.000 payday lenders will circle? Do you think that if the 227 00:12:07.000 --> 00:12:08.879 payday lenders also think that they're too high of a 228 00:12:08.960 --> 00:12:11.559 risk and they won't lend to them, or perhaps or unemployed, 229 00:12:12.000 --> 00:12:15.399 that they won't end up with gangsters lending them money. Well, 230 00:12:15.759 --> 00:12:18.320 you know, knee breaking type gangsters. Do you think that 231 00:12:18.360 --> 00:12:21.519 prohibition is suddenly gonna work. Sure, we've made drugs illegal, 232 00:12:21.720 --> 00:12:23.600 but now we've kept interest rates at ten percent, so 233 00:12:23.919 --> 00:12:26.639 no one will lend money above ten percent. So you're 234 00:12:26.679 --> 00:12:29.879 just creating a black market for anything above ten percent inevitably. Like, 235 00:12:29.960 --> 00:12:32.200 this is just reality. You can you don't have to 236 00:12:32.320 --> 00:12:33.960 like it. I'm just telling you the truth about how 237 00:12:34.000 --> 00:12:38.440 it'll play out. So is that ideal? I would say 238 00:12:38.440 --> 00:12:42.360 definitely not. Like is dealing with a credit card company fun? 239 00:12:42.799 --> 00:12:48.559 Is dealing with bill collectors fun? Or yeah, debt collector's fun? No? 240 00:12:48.799 --> 00:12:52.480 But is it better than dealing with dudes with billy 241 00:12:52.519 --> 00:12:54.799 clubs coming for your kneecaps? Yeah, it's a lot better 242 00:12:54.840 --> 00:12:58.679 than that. Can you file bankruptcy and get Vinnie to 243 00:12:58.679 --> 00:13:02.919 to forgive your loan? No you cannot. So things get worse, 244 00:13:03.200 --> 00:13:08.600 is what I'm saying. So this, the religious connotations or 245 00:13:08.600 --> 00:13:12.720 the religious protest stations to what I'm describing doesn't change 246 00:13:12.759 --> 00:13:17.120 the reality of the world. People that don't have money, 247 00:13:17.240 --> 00:13:21.240 that want to borrow money are gonna do it, and 248 00:13:21.279 --> 00:13:23.919 you can, you can cap the rates, you can forbid 249 00:13:23.960 --> 00:13:27.480 it entirely. It's not going to change that dynamic like 250 00:13:27.559 --> 00:13:30.799 you can. Sure some people may end up not borrowing 251 00:13:30.799 --> 00:13:33.799 money because you've either capt or made it illegal to 252 00:13:34.679 --> 00:13:37.639 have a credit card at all some, but it's certainly 253 00:13:37.639 --> 00:13:40.279 not going to get rid of it entirely. The other 254 00:13:40.360 --> 00:13:43.440 aspects of this is that if you want to deal 255 00:13:43.480 --> 00:13:47.200 with or if you if you op pose debt for 256 00:13:47.399 --> 00:13:50.360 religious reasons, well then the first thing you ought to 257 00:13:50.399 --> 00:13:54.840 oppose is the Federal Reserve, I mean, the ultimate debtor 258 00:13:55.440 --> 00:13:59.960 and the ultimate debt creator. So what really bothers me 259 00:14:00.480 --> 00:14:02.399 is that the Tucker Carlson's of the world will talk 260 00:14:02.440 --> 00:14:07.240 about usury, but they oftentimes will not talk about the 261 00:14:07.240 --> 00:14:11.399 Federal Reserve, which is a monoton of private entity which 262 00:14:11.440 --> 00:14:14.320 has a monopoly on the creation of currency. I mean, 263 00:14:14.399 --> 00:14:19.080 that is unbelievably evil. And then they create the currency 264 00:14:19.559 --> 00:14:22.399 and then they lend it out. Does that sound tollly 265 00:14:22.720 --> 00:14:27.159 to you? Sounds extremely unholy. So if you're interested in 266 00:14:27.200 --> 00:14:30.639 getting rid of credit cards or capping credit card rates, 267 00:14:30.960 --> 00:14:33.720 the first thing you ought to be talking about is 268 00:14:33.879 --> 00:14:37.120 ending the Federal Reserve. And if you're not talking about that. 269 00:14:37.440 --> 00:14:39.639 Do not expect me to take you seriously when you 270 00:14:39.679 --> 00:14:42.200 talk about credit card rates and the predatory aspects of 271 00:14:42.279 --> 00:14:45.720 the banking institutions. Like, the banking institutions are not holy. 272 00:14:45.879 --> 00:14:48.759 I'm not saying that thod or that you ought to 273 00:14:48.799 --> 00:14:53.159 love them. I'm just saying, compared to the central bankers, 274 00:14:53.600 --> 00:14:58.360 they are honorable. Yes, I'm saying that compared to the 275 00:14:58.360 --> 00:15:02.480 central compared to the Federal Reserve, the regular banks are honorable. 276 00:15:03.399 --> 00:15:06.679 Now areas of greatness with all of this, Like, I 277 00:15:06.799 --> 00:15:09.919 like credit unions better. I think that the local banking institutions, 278 00:15:09.919 --> 00:15:13.919 they have more concern for their customers, for the economy 279 00:15:13.919 --> 00:15:17.840 of their local area of the community. Just broadly, I 280 00:15:17.840 --> 00:15:21.360 think that they're better. You know, the multinationals, the JP 281 00:15:21.480 --> 00:15:25.320 Morgan Chases and others like them. Bank of America's I'm 282 00:15:25.360 --> 00:15:28.279 not very fond of, and if you can avoid doing 283 00:15:28.360 --> 00:15:31.919 business with them by all means, do But that doesn't 284 00:15:31.919 --> 00:15:35.519 mean that they are even close to as evil as 285 00:15:35.919 --> 00:15:39.720 the Federal Reserve. Like doesn't get much worse. Now, there's 286 00:15:39.720 --> 00:15:41.720 some overlap because some of these guys will sit on 287 00:15:41.720 --> 00:15:45.919 the board of some of the local Fed boardrooms, But 288 00:15:46.879 --> 00:15:49.159 you get the point. Like, if you're not talking about 289 00:15:49.240 --> 00:15:51.399 ending the FED, just get the fuck out of my face. 290 00:15:51.679 --> 00:15:55.919 With capping interest rates on credit cards, it's so missing 291 00:15:56.159 --> 00:15:59.240 the mark it's not even worth discussing anything with you 292 00:15:59.279 --> 00:16:02.240 further after that. So if you are one of those 293 00:16:02.279 --> 00:16:05.960 people will continue to discuss this. The other aspects of 294 00:16:06.000 --> 00:16:09.720 this that's really important is that if you are responsible 295 00:16:09.799 --> 00:16:15.039 enough to work, pay your taxes. I mean, I don't 296 00:16:15.039 --> 00:16:19.799 know if that classifies you as responsible, but if you're 297 00:16:19.840 --> 00:16:22.879 doing it the right way, right under the legal structure, 298 00:16:22.879 --> 00:16:25.240 you're doing it the right way. You work, you save 299 00:16:25.279 --> 00:16:28.799 the money, you pay your taxes, you pay your rent, 300 00:16:28.840 --> 00:16:31.159 all that, you deal with inflation, you deal with everything else, 301 00:16:31.799 --> 00:16:34.320 and you manage to save up ten thousand bucks. At 302 00:16:34.360 --> 00:16:36.399 the end of the year, someone comes to you and 303 00:16:36.440 --> 00:16:40.159 they want to borrow that money, and you're like, I mean, 304 00:16:40.200 --> 00:16:43.240 this is what we do all the time. Like when 305 00:16:43.279 --> 00:16:45.840 you leave that money in your savings account and they 306 00:16:45.919 --> 00:16:48.879 pay you one percent interest or whatever, it is usually less. 307 00:16:49.080 --> 00:16:52.039 That is usery. You are lending that money to that 308 00:16:52.120 --> 00:16:55.480 banking institution and they then lend it out at a 309 00:16:55.519 --> 00:16:58.440 higher rate. They collect the spread, but regardless, you are 310 00:16:58.480 --> 00:17:01.360 still participating in You So do you want to do 311 00:17:01.440 --> 00:17:04.680 away with that where there is no such thing as 312 00:17:04.920 --> 00:17:08.319 passive income based off of the delayed gratification and the 313 00:17:08.359 --> 00:17:12.440 work ethic and the willingness to save and be responsible. 314 00:17:12.759 --> 00:17:16.160 Do you deserve nothing for that? Because anybody arguing against 315 00:17:16.279 --> 00:17:19.599 usrey has to say, correct, you don't deserve shit. I 316 00:17:19.640 --> 00:17:22.920 disagree with that. I think that it is actually really 317 00:17:22.960 --> 00:17:26.440 good and honorable, and it actually sends a great market 318 00:17:26.519 --> 00:17:31.440 signal to people to do exactly what I'm describing, because 319 00:17:31.440 --> 00:17:33.559 if you get to a point of say you've done 320 00:17:33.599 --> 00:17:37.480 that now for thirty years, and you've accumulated a million 321 00:17:37.559 --> 00:17:39.799 dollars and you're able to lend it out at four 322 00:17:39.880 --> 00:17:41.599 or five percent, you can get a CD from a 323 00:17:41.640 --> 00:17:45.400 bank at that rate certificate of a deposit. Well, now 324 00:17:45.680 --> 00:17:47.920 you get to supplement your Social Security income with the 325 00:17:47.960 --> 00:17:50.559 passive income from that savings with that bank with the 326 00:17:50.559 --> 00:17:53.079 CD rate, so that a million dollars would mean that 327 00:17:53.079 --> 00:17:57.440 you're then pocketing forty or fifty thousand dollars annually. That's 328 00:17:57.640 --> 00:18:00.759 approximately four thousand dollars a month. So you're bringing in 329 00:18:00.839 --> 00:18:02.839 say I don't know what it is, three thousand bucks 330 00:18:02.920 --> 00:18:04.920 or whatever it is with Social Security you then have 331 00:18:05.000 --> 00:18:07.039 the supplemental income from the million dollars that you're keeping 332 00:18:07.079 --> 00:18:09.759 in these CDs. That means that you're bringing in four thousand. 333 00:18:09.759 --> 00:18:12.599 That means that you're now in retirement. I'm speaking in 334 00:18:13.200 --> 00:18:16.480 modern numbers. You're bringing in seven thousand a month without working. 335 00:18:17.119 --> 00:18:18.880 That's enough that you might be able to live a 336 00:18:18.920 --> 00:18:22.240 comfortable lifestyle, a lifestyle that you had been accustomed to 337 00:18:22.839 --> 00:18:25.680 during your working years. Is that bad? Is that a 338 00:18:25.720 --> 00:18:28.759 bad thing that you've done that? I would argue absolutely not. 339 00:18:29.480 --> 00:18:33.400 You did the right thing for decades. Why should you 340 00:18:33.480 --> 00:18:38.279 not have the benefit of receiving a return on your 341 00:18:38.319 --> 00:18:43.519 hard work and your willingness to delay the use of 342 00:18:43.559 --> 00:18:46.440 that capital. I think that you ought to the other 343 00:18:46.480 --> 00:18:49.119 aspect of this that I don't understand, and maybe someone 344 00:18:49.200 --> 00:18:52.519 can educate me. But people always argue, well, why do 345 00:18:52.559 --> 00:18:55.480 you have to get interest on this at all? Like, sure, 346 00:18:55.559 --> 00:18:58.559 there's honorable ways to make investments where you don't charge 347 00:18:58.559 --> 00:19:01.359 it's not usury. At least it's better than usury. Well 348 00:19:01.440 --> 00:19:03.720 consider this. So this is an example that people bring up. 349 00:19:03.759 --> 00:19:06.359 Sometimes they say, well, you can just buy a house 350 00:19:06.400 --> 00:19:09.200 with it. So you've saved up a million dollars. You 351 00:19:09.200 --> 00:19:10.839 buy a house with a million dollars and then you 352 00:19:10.920 --> 00:19:14.599 rent that house out and then the tenant pays you. 353 00:19:14.599 --> 00:19:17.640 You can live off of the net profit from that investment. 354 00:19:17.920 --> 00:19:21.400 Then it's not usury. Right, Well, what's the fucking difference. 355 00:19:23.480 --> 00:19:26.640 I honestly don't see a difference at all, other than 356 00:19:26.640 --> 00:19:29.599 it's a real asset, like a real estate asset, versus 357 00:19:29.720 --> 00:19:34.640 a financial one. But it's the same concept. I delayed gratification. 358 00:19:34.839 --> 00:19:38.039 I bought this house. You want to use the house, 359 00:19:38.079 --> 00:19:39.799 but you don't have the money for it, So I'm 360 00:19:39.880 --> 00:19:43.920 lending you the house. That's what rent is. But apparently 361 00:19:43.960 --> 00:19:47.119 that's permissible under a Christian framework, but usury isn't. So 362 00:19:47.240 --> 00:19:52.160 lending money via a house is. Okay, do you understand 363 00:19:52.160 --> 00:19:55.079 what I'm saying? Now, Maybe the Bible addresses this and 364 00:19:55.119 --> 00:19:59.119 I'm just ignorant to it, and that's a possibility. I'm 365 00:19:59.160 --> 00:20:02.119 not claiming to be an expert, but I really do 366 00:20:02.160 --> 00:20:05.400 think that it's like it's anger over the medium of exchange, 367 00:20:05.400 --> 00:20:07.960 which doesn't make any sense to me. The premise still applies. 368 00:20:08.680 --> 00:20:13.400 It's the same concept with any sort of investing. Really, like, 369 00:20:14.079 --> 00:20:16.799 think of an investment, what are you doing. You've delayed, 370 00:20:16.839 --> 00:20:20.400 you've saved, and you've deployed, and that money is being 371 00:20:20.400 --> 00:20:23.920 held either in an asset or in someone else's hands, 372 00:20:24.079 --> 00:20:27.839 or in some business's hands. It's always the same concept. 373 00:20:28.160 --> 00:20:31.079 You delayed, you saved, you deployed, You get a return 374 00:20:31.119 --> 00:20:33.799 on that, or at least you hope. So I don't 375 00:20:33.799 --> 00:20:36.599 think there's anything morally wrong with that at all. So 376 00:20:36.680 --> 00:20:40.039 what happens with a society that's functioning in a healthy 377 00:20:40.400 --> 00:20:45.799 investorment mindset? Well, then everybody that's listening right now, if 378 00:20:45.839 --> 00:20:47.119 you were to go out and you were to save 379 00:20:47.160 --> 00:20:49.720 a million dollars and to I'm not saying that's easy, 380 00:20:49.759 --> 00:20:53.839 but if you were to do so over your lifetime, well, 381 00:20:54.240 --> 00:20:58.759 that has created a society that is much lower time 382 00:20:58.839 --> 00:21:03.359 preference in that they are willing to delay the gratification 383 00:21:03.480 --> 00:21:07.160 of the future and save up year after year, live 384 00:21:07.240 --> 00:21:10.079 beneath their means, which is what is necessary for you 385 00:21:10.160 --> 00:21:12.640 to save, because if you live at your means, that 386 00:21:12.680 --> 00:21:14.440 means you just deploy all of you spend all of 387 00:21:14.480 --> 00:21:17.599 the money that you make annually, so you've delayed gratification. 388 00:21:18.839 --> 00:21:21.039 What does that do to the culture. I think it's 389 00:21:21.039 --> 00:21:26.720 a much healthier framework because then it requires personal responsibility, 390 00:21:27.160 --> 00:21:33.119 It requires financial education and thoughtfulness as to how you 391 00:21:33.160 --> 00:21:36.279 go about things. Oftentimes it trickles into your day to 392 00:21:36.359 --> 00:21:39.480 day life when it comes to taking care of yourself physically. 393 00:21:39.880 --> 00:21:42.240 I haven't I haven't seen studies on this, so I'm 394 00:21:42.319 --> 00:21:44.920 kind of guessing, but I would imagine that those that 395 00:21:45.079 --> 00:21:48.480 are really good with their keeping their financial house in 396 00:21:48.599 --> 00:21:51.839 order probably keep the rest of their life in order too, 397 00:21:52.240 --> 00:21:56.799 you know, from family structure, to owning a home, to 398 00:21:56.880 --> 00:21:59.519 keeping the home tidy, to keeping yourself in shape. Like 399 00:21:59.759 --> 00:22:03.160 these are the people that are thinking into the future. 400 00:22:03.480 --> 00:22:05.559 Because if you're if you're the type of person that's 401 00:22:05.599 --> 00:22:08.200