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Speaker 1: There are hidden taxes in the world, sometimes are emotional,

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sometimes are physical. There's hidden taxes in the way of regulation.

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And as conservatives, we talk about this, but I don't

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think we really think about the weight of this, the

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unconstitutional nature of this. Zach Abraham, my friend and brother,

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Chief Investments or Bord Capital Management. He works in a

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world that is so so regulated unless you're in Congress,

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and then you can just flat out steel through insider trading.

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But he knows and has seeing what regulation can do.

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Speaker 2: We're going to talk about that.

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Speaker 1: Plus, we need to talk about this game, this stupid

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offensive game that FEMA and other government agencies play with

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money where oh no, no, that's a different budget, that's

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not FEMA money.

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Speaker 2: We'll talk about this with Zach.

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Speaker 1: Also, I'm going to try to convince him to pop

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onto the private plane. He doesn't have a private plane.

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He's Steward's money. He doesn't go out wasted to come

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down the Mississippi and fall.

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Speaker 2: In love with this place. We'll talk about this with

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the help.

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Speaker 1: Of renew dot health carets are e n ue dot

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healthcarets where I go to elevate my life by elevating

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my health caare and with God Almighty.

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Speaker 3: The Todd Herman Show is one hundred percent disapproved by

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big pharma technocrarats and tyrants everywhere. No from the high

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mountains of Free America. Here's the Emerald City exile Todd Herman.

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Speaker 2: Today is to day the Lord has made in.

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Speaker 1: These are the time so which God has decided we

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shall live its wise council day. Zach Abraham joins us

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all the way across the country. Zach, Welcome to a

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remote version of the Todd Herman Show.

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Speaker 4: I feel like I can smell the barbecue from here.

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Speaker 2: Oh dude, I feel.

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Speaker 5: Like I can smell sec filgating the barbecue, all of it.

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Speaker 4: And it's it's killing me, man, killing.

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Speaker 1: Just fact now that you say that, I actually can

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smell it, and uh it just I got invited to

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an old miss game.

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Speaker 2: I get to go down on the field and hang

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with I didn't. I didn't, Okay, but.

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Speaker 1: I man, I first time I went to the place

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in Mississippi. I went and ate at a place called

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the Neon Pig. And let me just give you a

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check on this on this town. What this town is like.

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I walk in, I'm brand new, and I talked to

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the young man.

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Speaker 2: What should I eat? No doubt?

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Speaker 1: A bash burger? What's bash? That's where we take briskets

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and we have got it. I'm in lean briskets. They

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bring this to me in a power bowl and Zach,

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you ever eat something and then you make a noise?

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Speaker 5: Oh yeah, I think right when it deserves the noise,

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I think a bite.

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Speaker 2: And that's when Harry met Sally. The brisket version. It's just.

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Speaker 3: And yeah.

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Speaker 1: So then as I'm eating, this guy comes over. He goes, hey,

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you knew here. Yep, that's what I eat any time

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I'm up in here. Okay, got it up in here

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like that record that that's a Mississippi phrase. Turns out

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he's the owner, just just just hanging walking around.

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Speaker 2: And I learned the.

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Speaker 1: Guy who's the chef, like the chef his name. He

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comes and tells me his name, and I go back.

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Speaker 2: The next night.

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Speaker 1: They remember me powerable again and it's just this magical

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place in this way, and people use sir and madam.

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People here call me mister Todd crazy thing, and I'm

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starting to do that. Man, I want to treat people

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that way. You got to come down check out Mississippi.

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Speaker 4: It sounds a lot like Bellevue.

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Speaker 1: It does not doesn't sound like Bellevue, Washington, snooty capital

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of the world.

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Speaker 5: No, I'm sorry, that is a disrespect to those people.

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Todd understands the nature that that good natured ribbing.

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Speaker 2: There well, which you're ribbing is Bellevue.

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Speaker 4: Yeah, and that's one hundred percent when I'm ribbing. No.

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Speaker 5: You know, it's funny because I don't really know where

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I picked that up.

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Speaker 4: My family.

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Speaker 5: My family didn't enforce that, but I still say yes, sir, yes, ma'am.

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Speaker 4: Even to people that are younger than me.

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Speaker 5: Uh, you know, if they're an authority, you know, if

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they're at the register or they're in an authority position,

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or you know, they're they're waiting on tables.

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Speaker 4: And I make my I make my kids do it.

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I I just I love the I just love the

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respect that it shows.

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Speaker 5: And and it's also it's also a form of decency

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and respect that costs you nothing. And you know what

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I mean, Like just going around the world is spreading

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a little more respect and decency.

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Speaker 4: And I just I just I love that.

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Speaker 1: I made the decision when I was traveling this time,

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you know, because I traveled so much and you know this, Zach.

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Speaker 2: You've been in that that phase.

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Speaker 1: Of life where airplanes if your life, are your life.

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And you know when when everybody on an airline knows

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your name, and I'm not kidding, when when when you

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walk into an airplane and a flight attendant walkscept oh hi, Todd,

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one see yeah, one see, and they know that it

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can become so tiresome. I don't travel as much and

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I can enjoy it. And I've made this decision to

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be the kindest guy in the airports. So and I

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use this phrase, I appreciate you and instead of thank you,

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that's great, appreciate it. I appreciate you. And I've seen this.

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Just pay these dividends with people, because as much as

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you might hate flying, how fun do you think it is?

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Today after day after day, check people into flights today

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after day after day, say no, I'm sorry, I can't

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switch your seat. I mean, it can't be that fun

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to work in there. And since I started to be

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extra kind of the airport, my prayer, life's gotten better.

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Speaker 2: Isn't it weird? Like all of a sudden, I'm more

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for prayer.

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Speaker 4: I don't I don't find that weird at all.

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Speaker 5: And I think for me, who, how I treat, how

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I treat random people. You know, it really has always

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been a very good thermostat to be to kind of

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show me where I'm at in my life, right like

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where where my heart's at, where my spirit's at. Yep,

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and when it's you know, and and when when when

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I'm where I should be. You know, there's just an

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unendless supply of patience and kindness, and and when I'm not,

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there's not you know what I mean. It's it's there's

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really not a lot.

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Speaker 4: In the middle.

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Speaker 5: And and that's what I'm saying. I love those little things,

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you know. It's it's something simple that we can do.

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And I try to talk to my kids about this

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all the time. It's just, hey, with a very simple

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little interaction, you can spread a little bit of goodness

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into somebody's life or just give them a different interaction

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than they're probably having most of the time.

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Speaker 4: You know, just a little bit right, and you never know.

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Speaker 1: And you can be the reason and I've said this

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before that you can, in unbelievably simple ways, you can

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be the reason that someone doesn't off themselves.

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Speaker 2: I know.

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Speaker 1: That's an awfully dramatic statement, but but you can be

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that person. We were eating pizza that my sister made

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me go to a counterfeit pizza place because she didn't

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want to come out to Idaho, so she forces me

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to go this place in Washington and there was a

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very heavy lady and she was morbidly obese and then

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some and she was eating pizza there and ordering a

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pizza to go. And I don't body shame. My dad

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was obese his whole life. I you know, I used

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to weigh four pounds. I don't have any business body

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shaming anybody. So I'm just I'm sad. I just feel

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sad for her because she's just feeding this. And my

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sister turns around and she says, I love your nails,

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and this lady looked up. She said, pardon me. She said,

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I really love your nails. I really love your fingernails,

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and that lady lit up and she's not used to that,

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and she's not used to someone taking some way to

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say this looks nice on you.

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Speaker 2: And we both connected. She left.

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Speaker 1: I said that was really nice what you did, and

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she said she had really nice nails. She said, that's

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not what you did it and she said, she makes

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me think of that.

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Speaker 4: Yeah, you know, I was just a little fatherly break here.

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Speaker 5: You know, who is so good at that, especially with nails,

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especially randomly my daughter, And there have been so many

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times where I hear her do something like that and

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you know, the face brightens up on the other person,

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and it's convicting, you know what I mean, because I'm

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sitting there, caught up in my own world looking around now,

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you know, not being rude or anything like that, and

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then I hear her doing what I've told them to do,

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and then I'm not doing you know, And yeah, I

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know exactly that feeling, because it's one of those things

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where a you're proud but be you're kind of convicted

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at the same time.

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Speaker 4: Yeah, yeah, I love that stuff. I say, hey, why

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not be a ray of sunshine?

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Speaker 2: I agreed.

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Speaker 1: You know, when we're at dinner, and I told my

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sister this because she is in this phase of life

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where it's really difficult for her to eat meat, which

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is weird for her. She is a meat eater, but she's.

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Speaker 2: Cheering with me.

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Speaker 1: Man, I cannot get enough protein. Just meat sickens me

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these days. It makes my stomach feel unwell. So I

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tell you this because people will think, oh, you do

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this because you're paid.

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Speaker 4: Yeah.

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Speaker 1: I have a revenue relationship with the people at Biapthemizers.

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They've been a long time supporter of the show. I

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use all their products. So this is my sister, who

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I love dearly, and I looked at her and say, hey,

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I use a product. Are you open to me telling

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you about it? Of course, so I told her about

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mass Symes. My sister's in healthcare, okay, so she understands

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the human body pretty well. Explained that mass simes did

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a test side by side at Bershin National University in Bosnia.

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They looked at people who ate food without mass symes

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and people who used mass symes. The people like me

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who use mass simes produced percent more amino acids in

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their bodies. Now, the amino acid is the building block

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of protein, particular of your proteins, which is a building

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block of muscles, particularly branch chain aminos. My sister knows

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this and explained to her they took two hundred and

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forty three experiments to get this right. It's not just

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that it helps you get more protein, it also produces

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digestive comfort. So I'm of course giving my sister bottles

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of this. I can't give them to everybody, but it

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can show you how to take ten percent. Just go

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to Bioptimizers dot com slash todd. You get ten percent

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off mass times and all their products there. And I

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use every single one of the products. It's Bioptimizers dot

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com slash todd. Stop letting poor digestion ruin you from

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reaching your full potential, Zach, I'm in Mississippi. We're not

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praise God in the storm zones. I know you've been

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paying attention to the storms you travel, and I'm just

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looking at some of the financial costs. We're looking at

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maybe one hundred and seventy five billion dollars in losses

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from this, which just begin to compare to the human

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life that's been lost in the people wondering where the

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loved ones are, people's houses. They don't mean to make

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this an economic number, But I was talking with a

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guy on the airplane who's flying down to Florida. I mean,

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I'm I'm in Dallas and they're flying to their home

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in Florida knowing that this massive storm is coming.

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Speaker 2: You know.

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Speaker 1: He looked me in the isaac and I said, well,

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you know, there's insurance and he goes, oh, insure, it's

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I ain't gonna pay for this.

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Speaker 2: I said, what he goes, No, they've already walked away.

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Speaker 4: Is that true?

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Speaker 1: Can they actually do that in the insurance business, just

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walk away from this level of loss?

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Speaker 4: You know what? I was not under the impression that

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they could. And if they do.

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Speaker 5: The way the insurance system is set up is that

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every state has a guarantee fund.

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Speaker 4: So the state will either is either obligated to step

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in and.

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Speaker 5: Back in or back up those those obligations, or what

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typically happens is they sell them or negotiate a purchase

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of those to another insurance company. Now they're going to

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be hard pressed to find a buyer for those policies.

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So and I can't speak to this because you know,

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I don't deal with homeowner and being castulary stuff. But

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my suspicion is is that there will be several insurance

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companies that probably walk away because they can't pay.

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Speaker 4: It would be my would be I guess.

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Speaker 5: But those policies, to my understanding, have to be backed

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up by the state, So the government will probably end

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up footing the majority of the bill for this.

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Speaker 1: I would assume sorry, did you see the government? Yeah,

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because the government has money. So no, I mean how

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we define it today?

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Speaker 2: Right?

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Speaker 4: Yeah?

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Speaker 1: Right, right, So but ultimately we pay for this, and

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I guess we're paying this for our neighbors, et cetera.

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Are you watching this FEMA dance where FEMA has been

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institutionally captured. You know, they're regulatory agency, we're going to

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talk about regulations. They decided, I think got an idea,

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why don't we take a billion dollars of our money?

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And we're a federal emergency management agency, but why don't

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we not do that as much? And why don't we

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take a billion dollars and settle illegal immigrants fly them

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out of California to Texas so we can flood Texas

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with illegal immigrants. Are you watching them variously brag about this, Oh,

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sure we do this, and we were fans, and then

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come out and say we're not doing it.

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Speaker 2: Have you watched this?

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Speaker 4: No?

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Speaker 5: I mean I've I've read some of the hidelines or

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high you know, highlights, headlines type deals on it. I

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have not heard some of the videos though, But as

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you're sitting here describing it, I'm kind of salivating.

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Speaker 4: Not because it's.

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Speaker 2: Good just because you want to see it.

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Speaker 4: Yeah.

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Speaker 5: I mean it's like, well, you know, it's like somebody

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telling you, hey, there's a train wreck, don't want don't look,

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you know, I'm just like you have to. But also

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just when I see people like, you know, maybe it's

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like the boy scout. I was never a boy scout,

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but it amazes me how people can speak on a

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public platform where they know the public is listening and

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just bold.

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Speaker 4: Face lie, right.

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Speaker 5: I just and I don't even say that in an

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incriminating way. I say it more in an amazement way,

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like yeah, I have to tune in. It's kind of

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like listen to so much like what Fauci said right

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where you're sitting there, going, I know you're lying, like

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that goes against all scientific norms, Like that's that's such

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obviously it's funny.

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Speaker 4: And I just yeah, I can't look away, man, I

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don't know. No.

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Speaker 1: And we've been playing this on the show this week,

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and so I won't play it again because you know,

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viewers and listeners have seen it. But you have Aleandromercus

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who's impeached but not yet convicted, totally corrupt, and this

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is literally in a period of months where the guy says, yeah,

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we're set.

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Speaker 2: You know, this is what FEMA does. We're well prepared.

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Speaker 4: We're good.

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Speaker 1: It's not just hurricanes. You know, there's raising temperatures, et cetera,

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a lot of.

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Speaker 2: Paper suff it. So we're fine.

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Speaker 1: At about like three weeks later, he comes out says, yeah,

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we don't need money, so we can't respond to this

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because we have no money. One of those statements was false.

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And this is what we were talking about earlier. Same

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people when they run into something like this, Oh my gosh,

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we've got a huge unexpected expense. Maybe there's some things

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we should cut out of our life, like maybe this

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isn't the time to resettle illegal immigrants. But he's so

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busy saying that we don't do that. They're not even

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going to bother to change the budget. And this goes

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to this power of regulatory agencies. And you guys are

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in a business that is so ultra regulated. If you're

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the if you're not in the inside, like if you're

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not in Congress, or you don't work, it's you know,

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the big Goldman saction.

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Speaker 2: With the FED. It's so regulated.

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Speaker 1: What sort of cost does that put on business? I mean,

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if you were to guess, I think I have a

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number what it puts into certain businesses. But for instance,

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real estate, my friends in real estate will tell me

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that that regulation adds thirty percent of cost to home

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sales and purchases.

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Speaker 5: Yeah, that number doesn't surprise me at all. It's in

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the financial industry.

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Speaker 4: It's a little bit different because.

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Speaker 5: I mean, there, you know, I could It's my guess

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is on a base level, it's probably somewhere in the

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you know, fifteen to twenty five percent, just off the

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top of my head. But remember, you know, on the

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on the financial side of it, those regulations also carry

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with them much more onerous penalties, right, so you have

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to kind of calculate that risk into it.

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Speaker 4: And people are like, well, if you don't do anything wrong, you.

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Speaker 5: Got nothing to worry about this. That's just not the case.

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And I don't want to continue to it, but it's

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just not the case. And that's one of the issues.

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Like so, for instance, you know, I know of situations

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where people have spent hundreds of thousands of dollars proving

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that they didn't do what they're being accused of doing,

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and they were being accused of doing it. For no

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particular reason other than somebody thought they were right like

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and you know, they proved that they weren't, but.

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Speaker 4: It still cost them what they cost them.

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Speaker 5: And when it's all over, you know, you can't go

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after anybody for those damages. But the most concerning part

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about it to me, and this is the part that

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I do not think that the average person understands. There

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was a very important and I shouldn't be forgetting the

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rule about it or the name of it. But there's

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a very very important Supreme Court Court ruling came down

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this year regarding the sec and it disallowed meaning the

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existing law was such that when you heard of somebody,

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and a lot of times it was bad guys, right,

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So I think people kind of look the other way

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and nobody really pays attention. But if you hear about

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somebody getting sentenced for a financial crime, now the Feds

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can step in, I think, and can prosecute them. But

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in a lot of cases, unless it's a really whole,

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a high profile case, you know they won't do that,

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right because every DA wants to be seen throwing Bernie

368
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made off in jail, right.

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Speaker 4: Right, it's good for your career. But most of the times,

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the SEC is going to handle that.

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Speaker 5: But prior to that Supreme Court ruling, if if you

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got sentenced by the SEC to let's say, twenty years

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in prison, that trial was carried out in front of

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a judge that is a part of the SEC, without

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a jury of your peers. Right, and for a US citizen,

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you can get deprived of your freedom by a judge

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for twenty years and put in the penal system without

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going in front a jury of your peers.

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Speaker 1: This is the administrative judge.

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Speaker 4: Yes, yes, in the SEC. Right.

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Speaker 5: Right, So you're convicted of a felon, you go to

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jail for twenty years, and at no point do you

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get to go in front of a jury of your peers.

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Speaker 4: People. And it's crazy.

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Speaker 1: It is, And people need to understand something about we

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talk about the deep state, the regulatory state. There is

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that whole thing where oh no, the deep state, that's

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a fever swamp, that's a mega that doesn't exist.

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Speaker 2: Those are conservatives. They hate government.

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Speaker 1: Let me put some teeth to what Zach is describing here,

391
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and let's discuss this. Because you talk about regulatory weight.

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I've shared with you. When you're in the doctor's office,

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you just go ahead and imagine, because this is true.

394
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Like you're in the doctor's officer in that uncomfortable position

395
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of getting checked out as a dude, and you know

396
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what I'm talking about, and you don't like that. I

397
00:18:43,880 --> 00:18:46,200
don't most doctors don't like it. I want you to

398
00:18:46,240 --> 00:18:49,839
picture nineteen people in the room with you, because it's

399
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an accurate thing. Because when there's one doctor, there's nineteen administrators.

400
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For everyone doctor, there's nineteen administrators because of the weight

401
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of regulation. So while you're doing that horrible thing of

402
00:19:00,559 --> 00:19:03,920
turning your head and coughing, just imagine nineteen people with clipboards.

403
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Speaker 2: No cough louder. We don't like to degree with that cough.

404
00:19:06,759 --> 00:19:09,599
That's no. I needed to be a belly cough. Now

405
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we prefer a throat cough.

406
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Speaker 1: And that's the way this is laid out. And I

407
00:19:15,160 --> 00:19:17,279
want to explain something else about this and discuss this

408
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with Zach because the world in which he operates, yet

409
00:19:19,680 --> 00:19:22,920
it can end in felonies, which is why it's thrilling

410
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to know that Zach is the guy who doesn't need

411
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to be regulated because he made himself a fiduciary.

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Speaker 2: So Zach is af aduchiary.

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Speaker 1: This means he's legally bound to put our financial interests

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above his. Okay, that's really really important. Zach puts his

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financial interests behind ours. At Bower Capital Management, they are

416
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obsessed and sorry if this sounds weird, Zach, but you

417
00:19:47,160 --> 00:19:51,319
are obsessed with risk management, doing that through actively managing portfolio,

418
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which can reduce risk and volatility. But he put the

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label of fiduciary on himself. Other people don't do that.

420
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They're financial planners. Zach the ante in terms of what

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he has to do, which is why my money will

422
00:20:05,079 --> 00:20:06,440
most of my money, so won't let me put all

423
00:20:06,480 --> 00:20:08,079
my money with them? Most of my money's with him,

424
00:20:08,160 --> 00:20:10,640
rest of it's in real estate. So look, you can

425
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talk one on one of the Zacho to Know your

426
00:20:12,319 --> 00:20:15,599
Risk radio dot com. It's Kanow Know your Risk radio

427
00:20:15,680 --> 00:20:18,440
dot com. He'll look at your investments, your plans. When

428
00:20:18,480 --> 00:20:20,799
you think you're going to retire, what is the reality.

429
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And as he did a few weeks ago, said to

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my friend Ben's dad, Hey you're good to go. My

431
00:20:25,799 --> 00:20:27,599
good job. You did a good job investing. And if

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he can pass that good news to you, he will.

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00:20:29,200 --> 00:20:32,000
It's know your Risk radio dot com. Know you know

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your Risk Radio.

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Speaker 6: Dot com investment advisory services offered through Track financialc and

436
00:20:35,839 --> 00:20:38,640
SEC Registered Investment Advisor. The opinions expressed in this programmer

437
00:20:38,640 --> 00:20:40,720
for general informational purposes only and are not intended to

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00:20:40,759 --> 00:20:43,240
provide specific advice or recommendations for any individual or on

439
00:20:43,279 --> 00:20:45,920
any specific security. Any references to performance of security, so

440
00:20:45,960 --> 00:20:48,279
it thought to be materially accurate and actual performance may

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00:20:48,279 --> 00:20:50,759
different investments involved risk and are not guaranteed. Past performance

442
00:20:50,759 --> 00:20:53,119
doesn't guarantee future results. Track twenty four three zero eight.

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Speaker 1: So, Zach, here's the thing about these administrative course people

444
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need to understand that the SEC is a government. They

445
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have their own judges, they have their own constitution, They

446
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can make laws any time they want, and in order

447
00:21:08,599 --> 00:21:11,839
for you to sue them, you have to ask their permission.

448
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So you have to go to an administrative judge to say,

449
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may I sue the SEC. So, in other words, bringing

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legal grievance. They need to agree that you can bring

451
00:21:22,640 --> 00:21:26,079
legal grievance and that they can put you in prison

452
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without affording you a jury. Congress could step in and

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stop this, but they won't. There is no way that

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you can take those two things and say you live

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in a republican form of democracy, and if you've never

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had to face a situation like that, I don't think

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people understand how scary that is.

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Speaker 5: No, And just to be clear, this really is an ape.

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It should be an a political discussion, and let me

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explain why.

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Speaker 4: Okay, because I'm a guy that.

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Speaker 5: Operates in the financial industry that does and has stated

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many times that I absolutely do believe that needs to

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be regulation. I think it could be done much more effectively,

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and I think it could be done at a much

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lower cost. And when I say effectively, I think it

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could be done in such a way. I'm a big

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advocate of slashing regulations and four or even five xing

469
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penalties right, just because there are so many times, and

470
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look to be fair to regulators, there are so many

471
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times where you can see a regulation and you can,

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even though I find it annoying, you can read the

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regulation and go, okay, I totally understand what they're trying

474
00:22:37,440 --> 00:22:37,759
to do.

475
00:22:38,759 --> 00:22:40,519
Speaker 4: The problem is.

476
00:22:40,000 --> 00:22:43,119
Speaker 5: Is there are already other three other regulations on the

477
00:22:43,160 --> 00:22:47,839
docket that demand this anyway, or basically, you know there'll

478
00:22:47,839 --> 00:22:51,480
be other regulations that require you to do certain things

479
00:22:51,839 --> 00:22:55,680
that if you follow those regulations it disallows you to

480
00:22:55,720 --> 00:22:58,200
do the thing that the new regulation addresses. Does that

481
00:22:58,240 --> 00:23:01,440
make sense, Yes, okay, so kind of a word salid there.

482
00:23:01,480 --> 00:23:04,359
But where it really is kind of like a double

483
00:23:04,400 --> 00:23:09,079
stacking of regulation. And what ends up happening is that

484
00:23:09,160 --> 00:23:13,240
with each new regulation, the cost of operating and the

485
00:23:13,359 --> 00:23:17,079
risk of operating in that space goes up. Well, anytime

486
00:23:17,160 --> 00:23:20,680
the cost of regulation is going up, you just need

487
00:23:20,720 --> 00:23:24,720
to remember and again, it doesn't mean the regulation. Regulation

488
00:23:24,799 --> 00:23:28,480
to me is like tax law, meaning nobody likes it,

489
00:23:28,680 --> 00:23:32,759
but most rational people recognize that it's necessary. But it

490
00:23:32,759 --> 00:23:36,920
should be done in such a way. It's a maximization problem, right.

491
00:23:36,960 --> 00:23:38,400
You want to do it in such a way that

492
00:23:38,480 --> 00:23:42,880
it doesn't onerously penalize the people who are sincerely trying

493
00:23:42,920 --> 00:23:45,720
to do their best, but also doesn't leave.

494
00:23:45,559 --> 00:23:46,680
Speaker 4: Too many people vulnerable.

495
00:23:46,759 --> 00:23:49,759
Speaker 5: Right, there's a sweet spot, and all too often that's

496
00:23:49,799 --> 00:23:50,720
not recognized.

497
00:23:50,759 --> 00:23:51,960
Speaker 4: It's just what we have.

498
00:23:51,880 --> 00:23:54,960
Speaker 5: To eliminate these risks. Well, okay, but that comes at

499
00:23:54,960 --> 00:23:58,039
a cost. And one of the costs that it comes at,

500
00:23:58,079 --> 00:23:59,920
and this is why you have seen one of the

501
00:24:00,799 --> 00:24:04,359
one of the biggest reasons you've seen so much consolidation

502
00:24:04,480 --> 00:24:07,640
in the financial industry is that, like any other type

503
00:24:07,680 --> 00:24:08,440
of risk.

504
00:24:08,960 --> 00:24:12,839
Speaker 4: The bigger you are, the bigger pool you have that's

505
00:24:12,880 --> 00:24:18,880
able to absorb that risk. So you're disproportionately disadvantaging smaller

506
00:24:19,000 --> 00:24:23,039
businesses with each new layer of regulation. A perfect example

507
00:24:23,119 --> 00:24:23,359
is this.

508
00:24:23,799 --> 00:24:26,759
Speaker 5: You look at a company like a super international bank

509
00:24:26,799 --> 00:24:27,680
like a JP Morgan.

510
00:24:28,039 --> 00:24:29,880
Speaker 4: Okay, you pass new.

511
00:24:29,799 --> 00:24:34,599
Speaker 5: US legislation that, let's say, increases my regulatory cost by

512
00:24:34,640 --> 00:24:35,319
five percent.

513
00:24:35,880 --> 00:24:38,119
Speaker 4: Okay, well just think about JP Morgan.

514
00:24:38,279 --> 00:24:40,279
Speaker 5: They can sit back there with their accountants and their

515
00:24:40,319 --> 00:24:42,240
business planners and all that other kind of stuff and

516
00:24:42,279 --> 00:24:44,480
their CFO and they can go, Okay, we're going to

517
00:24:44,559 --> 00:24:47,559
reroute this number of trades not through our markets but

518
00:24:47,599 --> 00:24:50,119
through Malaysia. Right over here, we can make up for

519
00:24:50,200 --> 00:24:53,079
that excess cost. Right, we can shuffle this over here.

520
00:24:53,119 --> 00:24:53,680
Speaker 4: We can do that.

521
00:24:54,000 --> 00:24:57,279
Speaker 5: Well, if you're just a US based, Washington based wealth

522
00:24:57,319 --> 00:25:00,839
manager like me, you don't have international client right, you

523
00:25:00,880 --> 00:25:01,319
don't have.

524
00:25:01,240 --> 00:25:04,279
Speaker 4: The ability to do that. So once again, and what

525
00:25:04,279 --> 00:25:05,359
are you so what are you doing?

526
00:25:05,400 --> 00:25:10,559
Speaker 5: You're you're giving that that the big boys right certainly

527
00:25:10,599 --> 00:25:14,440
on a cost basis an advantage, and that that you know,

528
00:25:14,480 --> 00:25:16,839
you and I have discussed this before, but that is

529
00:25:16,880 --> 00:25:22,200
what we call regulatory capture. And you know, and that

530
00:25:22,319 --> 00:25:24,839
is being used by the tech companies, it's being used

531
00:25:24,839 --> 00:25:26,359
by the big finance companies.

532
00:25:26,720 --> 00:25:29,319
Speaker 4: They know this, right like, and you can see this.

533
00:25:29,400 --> 00:25:30,759
Speaker 5: And I think the U and I have discussed this

534
00:25:30,799 --> 00:25:33,680
before again, but you know, like Mark Zuckerberg sitting in

535
00:25:33,680 --> 00:25:36,279
front of the Senate and saying we need more regulation, Well,

536
00:25:36,279 --> 00:25:37,279
why is he saying that?

537
00:25:37,559 --> 00:25:41,680
Speaker 4: Because he's number one? Right, Like, all regulation.

538
00:25:41,319 --> 00:25:44,079
Speaker 5: Means is that you're increasing the barriers of entry and

539
00:25:44,119 --> 00:25:46,279
increasing the underlying cost in that industry.

540
00:25:46,359 --> 00:25:47,759
Speaker 4: So these guys aren't dumb.

541
00:25:48,119 --> 00:25:50,440
Speaker 5: You know, they built Facebook, they built Apple, they built

542
00:25:50,519 --> 00:25:53,200
you know, Tessela, all these big companies. They understand that.

543
00:25:53,680 --> 00:25:58,000
And you know it's and and the deep state issue too.

544
00:25:58,119 --> 00:26:01,680
Again it should be an a political issue, meaning that

545
00:26:01,960 --> 00:26:04,799
it is a threat to all of us because the

546
00:26:06,039 --> 00:26:08,480
people that do that, the bureaucrats that run these big

547
00:26:08,559 --> 00:26:12,039
organizations and these big regulators, they don't have to get

548
00:26:12,079 --> 00:26:14,880
they don't have to face election every four years. Right now,

549
00:26:15,599 --> 00:26:18,759
the new regime coming in can push them out in

550
00:26:18,799 --> 00:26:23,240
a point, somebody new. But you do that with directors,

551
00:26:23,279 --> 00:26:25,240
you don't do that with the boots on the ground.

552
00:26:25,279 --> 00:26:27,359
Speaker 4: I mean you can't right, you can't turn over.

553
00:26:27,440 --> 00:26:29,680
Speaker 5: It'd be like you know, ge saying We're gonna have

554
00:26:29,680 --> 00:26:32,000
one hundred percent turnover at every position.

555
00:26:31,640 --> 00:26:32,440
Speaker 4: Every four years.

556
00:26:32,960 --> 00:26:37,279
Speaker 5: It's not plausible, right, so we But in my opinion,

557
00:26:37,359 --> 00:26:40,079
it has just gotten way out of control, where in

558
00:26:40,119 --> 00:26:44,440
a lot of ways it's usurping the US legal system

559
00:26:44,799 --> 00:26:47,519
and it's really infringing on our constitutional rights because we

560
00:26:47,559 --> 00:26:51,079
have unelected people that do not face the scrutiny of

561
00:26:51,759 --> 00:26:55,880
an election making what are effectively laws, and they, oh,

562
00:26:55,920 --> 00:26:58,720
it's not laws, it's regulation. We look, if I violate

563
00:26:58,720 --> 00:27:01,799
your quote unquote regulation and by doing so, I can

564
00:27:01,880 --> 00:27:03,799
end up with a multi hundred thousand or a million

565
00:27:03,839 --> 00:27:05,359
dollar fine or go to jail.

566
00:27:05,960 --> 00:27:08,400
Speaker 4: I kind of see that as a law, right, funny.

567
00:27:08,160 --> 00:27:11,559
Speaker 1: But that you be so nitpicky, right, prison and spending

568
00:27:11,599 --> 00:27:14,119
that much money. There's another aspect to this that I

569
00:27:14,160 --> 00:27:16,599
want people to understand, and it has to do with employment.

570
00:27:17,279 --> 00:27:19,880
And people do not get these connections when you think

571
00:27:19,920 --> 00:27:23,119
of regulation and you think of employment costs.

572
00:27:23,319 --> 00:27:25,359
Speaker 2: Who else benefits from this ultra regulation.

573
00:27:25,440 --> 00:27:27,559
Speaker 1: We'll talk about this in a second with Zach Abraham,

574
00:27:27,839 --> 00:27:31,680
chief investment officer BU Capital Management. I'm going to offer

575
00:27:31,720 --> 00:27:33,720
you an opportunity to get ahead of something we're going

576
00:27:33,799 --> 00:27:34,799
to start talking about.

577
00:27:34,839 --> 00:27:37,759
Speaker 2: It's bone Frog wines. No, I said wines.

578
00:27:38,920 --> 00:27:41,599
Speaker 1: Bone Frog has a wine cellar and this has been years,

579
00:27:41,880 --> 00:27:45,119
years in the making. They have worn through wines and

580
00:27:45,160 --> 00:27:47,039
there's two two makes of wines.

581
00:27:47,200 --> 00:27:48,240
Speaker 2: I don't drink wine.

582
00:27:48,759 --> 00:27:51,240
Speaker 1: So this week of this past weekend, we had a

583
00:27:51,440 --> 00:27:54,880
wine tasting at our home and some of my friends,

584
00:27:54,920 --> 00:27:58,440
who are in fact wine snobs, sat and they did

585
00:27:58,440 --> 00:28:00,559
the thing where you sniff the wine and then you

586
00:28:00,640 --> 00:28:03,000
see if it's sticky in the glass, and that's called legs.

587
00:28:03,039 --> 00:28:04,880
And I don't drink I don't like to taste of wine.

588
00:28:05,400 --> 00:28:07,599
I don't like wine. I told Tim Krukshank, the founder

589
00:28:07,640 --> 00:28:09,640
of Bone Frog Coffee, and bone Frog says, man, I'm sorry,

590
00:28:09,640 --> 00:28:13,440
I can't help you. The one my friend Tom, who

591
00:28:13,559 --> 00:28:16,400
is a fantastic wine guy and he really actually knows

592
00:28:16,400 --> 00:28:18,640
what he's talking about, and he's been to France and

593
00:28:18,680 --> 00:28:21,319
he's just that sort of guy. He tasted the wine

594
00:28:21,359 --> 00:28:24,960
and his first assessment was, Okay, this is pretty good.

595
00:28:25,119 --> 00:28:27,400
This is pretty good. He was having the Murleau. This

596
00:28:27,440 --> 00:28:29,200
is pretty good, he goes, but it changes over time.

597
00:28:29,400 --> 00:28:31,119
I wouldn't mean it changes every time. He goes as

598
00:28:31,119 --> 00:28:34,880
you drink, it changes over time. And he took another

599
00:28:34,960 --> 00:28:38,240
he took some bites of food drink and he goes, okay, okay,

600
00:28:38,680 --> 00:28:44,279
and he's smiling, okay, okay. Now he gets it. I said, wait,

601
00:28:44,279 --> 00:28:46,200
what's happened. He goes, no, this is great wine. It

602
00:28:46,279 --> 00:28:48,559
is breathed longer. This is really good. Then he got

603
00:28:48,599 --> 00:28:51,079
the cabernet out, and you know, he did the thing

604
00:28:51,119 --> 00:28:54,880
where he takes that big leather thing and shoves down

605
00:28:54,920 --> 00:28:57,200
his tongue and scrapes it with it. He didn't do that,

606
00:28:57,240 --> 00:29:00,400
but he ate, you know, palate cleansing food. And then

607
00:29:00,440 --> 00:29:03,559
he had the cabernet and right away he did this noise.

608
00:29:06,720 --> 00:29:08,720
Now he turned out to like them are a little better,

609
00:29:08,759 --> 00:29:11,920
which is rare. But the rest of the people loved

610
00:29:12,000 --> 00:29:14,440
the cabernet. My wife loved the cabernet. Now here's the

611
00:29:14,480 --> 00:29:16,640
other test, though, is my daughter's new to drinking. I

612
00:29:16,640 --> 00:29:19,480
mean she's not yet twenty one, don't tell anybody, and

613
00:29:19,559 --> 00:29:21,559
we let her drink them are low and she said

614
00:29:21,559 --> 00:29:25,359
this is delicious. And her boyfriends and we're hoping maybe

615
00:29:25,440 --> 00:29:28,599
fiance one day. Is twenty four. He drinks a little wine,

616
00:29:28,599 --> 00:29:30,799
not much. He's kind of a guy who's very self controlled.

617
00:29:31,200 --> 00:29:34,079
He had the same thing, was the cabernet. So we're

618
00:29:34,079 --> 00:29:35,839
going to run some videos, et cetera. So you can

619
00:29:35,839 --> 00:29:37,319
see this with your own eyes. You can go to

620
00:29:37,359 --> 00:29:41,559
Bonefrogsseellars dot com slash todd get ten percent off. There's

621
00:29:41,599 --> 00:29:45,359
Bonefrogsellars dot com slash todd, and hey, don't be like me.

622
00:29:45,400 --> 00:29:47,759
If you like wine, go at it and support Tim.

623
00:29:47,799 --> 00:29:50,799
And this Tim, ofcourse a Navy seal retired three deployments

624
00:29:50,799 --> 00:29:54,160
on her behalf and also was a Buds instructor. Just

625
00:29:54,279 --> 00:29:56,960
like the coffee It's God Country team on the wies

626
00:29:57,000 --> 00:29:58,920
Bonefrogsellers dot com slash todd.

627
00:30:00,079 --> 00:30:01,920
Speaker 2: I was looking at this, Zach.

628
00:30:02,759 --> 00:30:08,319
Speaker 1: In the manufacturing business, sixty eight point four percent of

629
00:30:08,440 --> 00:30:11,759
compliance costs are labor related.

630
00:30:11,960 --> 00:30:14,119
Speaker 2: Now you're a math guy, you're an investment guy.

631
00:30:14,160 --> 00:30:18,519
Speaker 1: You're a chief investment officer at Borwer Capital Management. If

632
00:30:18,640 --> 00:30:23,240
sixty eight point four percent of my costs are labor

633
00:30:23,240 --> 00:30:26,160
related when it comes to the regulation that I face,

634
00:30:26,200 --> 00:30:29,519
and this is in manufacturing, what does that mean for

635
00:30:30,119 --> 00:30:32,160
me being able to hire people? Because I ain't no

636
00:30:32,240 --> 00:30:34,160
math genius? But I have a suspicion.

637
00:30:37,000 --> 00:30:39,720
Speaker 4: Well what is your suspicion. Let's hear your suspicion.

638
00:30:39,880 --> 00:30:42,039
Speaker 1: Well, I kind of think when stuff's more expensive, companies

639
00:30:42,079 --> 00:30:42,599
buy less of it.

640
00:30:42,759 --> 00:30:43,519
Speaker 2: So I'm kind of.

641
00:30:43,480 --> 00:30:46,160
Speaker 1: Thinking that this just adds up to maybe we'll have

642
00:30:46,240 --> 00:30:49,559
fewer employees in more software. So wait a minute, Wait

643
00:30:49,599 --> 00:30:52,000
a minute. Who gets helped by more regulation and manufacturing?

644
00:30:52,039 --> 00:30:55,680
Oh that's right, software and the hardware manufacturers and people

645
00:30:55,680 --> 00:30:56,279
who make tech.

646
00:30:56,319 --> 00:31:00,440
Speaker 2: They love themselves. Some regulation. Who gets hurt? People who

647
00:31:00,480 --> 00:31:03,039
want to have jobs in manufacturing get hurt? Am I wrong?

648
00:31:03,880 --> 00:31:04,319
Speaker 4: No?

649
00:31:04,319 --> 00:31:07,240
Speaker 5: No, I mean that's just you know, it's just basic,

650
00:31:07,880 --> 00:31:08,519
it's just based.

651
00:31:08,599 --> 00:31:10,079
Speaker 4: I mean it's just basic economics.

652
00:31:10,200 --> 00:31:14,799
Speaker 5: And you know, like we were talking about previously, you know,

653
00:31:14,880 --> 00:31:17,240
everybody can just to understand this simply, right. I mean

654
00:31:17,319 --> 00:31:21,799
it the larger your corporate footprint in or whether it's manufacturing,

655
00:31:21,799 --> 00:31:24,240
whether it's tech, whether it's software, it doesn't matter. The

656
00:31:24,319 --> 00:31:28,640
larger your footprint is any increased expense as it relates

657
00:31:28,680 --> 00:31:32,160
to operating that business or or being in that business,

658
00:31:32,279 --> 00:31:33,960
or the regulation costs that business.

659
00:31:34,359 --> 00:31:36,400
Speaker 4: The bigger you are, the less.

660
00:31:36,160 --> 00:31:38,440
Speaker 5: Impactful that expense is, because you're able to spread it

661
00:31:38,480 --> 00:31:41,599
across a wider surface area, and it just it.

662
00:31:41,720 --> 00:31:44,000
Speaker 4: Just is what it is. And like I said, I'm

663
00:31:44,000 --> 00:31:45,559
not advocating for no regulation.

664
00:31:45,680 --> 00:31:48,279
Speaker 5: I'm not one of these, you know, quote unquote pure

665
00:31:48,279 --> 00:31:51,559
hearted libertarians that believes, you know, there should be no government.

666
00:31:52,799 --> 00:31:55,880
I just believe capitalism and free markets really work. I

667
00:31:55,920 --> 00:31:58,440
think America is a walking embodiment and proof of that.

668
00:31:59,559 --> 00:32:02,440
And in order to do that, I think the vast

669
00:32:02,480 --> 00:32:06,279
majority of regulations should be bent around the maintenance of competition.

670
00:32:07,759 --> 00:32:10,319
And like I said, I think you should drastically you know,

671
00:32:10,359 --> 00:32:14,799
for instance, in this business, if you mismanage somebody's I mean,

672
00:32:14,839 --> 00:32:18,079
for the most for the most part, this is the case, right.

673
00:32:20,119 --> 00:32:21,480
You know, I'm not saying that they don't do this,

674
00:32:21,640 --> 00:32:24,759
but I just think a lot of this other stuff,

675
00:32:24,799 --> 00:32:26,839
there can be ways in our business that you can

676
00:32:26,880 --> 00:32:29,759
step in it and get in trouble even though you

677
00:32:29,799 --> 00:32:33,640
didn't do harm and may not have even violated your

678
00:32:33,640 --> 00:32:35,319
fiduciary oath to a client.

679
00:32:36,079 --> 00:32:39,119
Speaker 4: And I just I think sometimes.

680
00:32:40,279 --> 00:32:43,160
Speaker 5: You know, the guys that actually do something that's shady,

681
00:32:43,200 --> 00:32:44,400
I don't think enough heat.

682
00:32:44,279 --> 00:32:44,960
Speaker 4: Goes their way.

683
00:32:45,839 --> 00:32:48,519
Speaker 5: And I think other times you kind of have this

684
00:32:48,640 --> 00:32:54,599
quote unquote victimless regulatory breach that may not hurt you,

685
00:32:54,599 --> 00:32:57,640
know what I'm saying, and with that should not come

686
00:32:58,200 --> 00:33:00,599
that level of cost. And I think in a lot

687
00:33:00,599 --> 00:33:02,720
of ways, you'll look at some of these regulations and

688
00:33:02,759 --> 00:33:04,359
you kind of sit back and go, kay, I can

689
00:33:04,400 --> 00:33:06,559
see what you're trying to do here, and not saying

690
00:33:06,599 --> 00:33:09,440
the intention behind it's bad, But this doesn't it all

691
00:33:09,480 --> 00:33:10,599
do what you think it's going to do.

692
00:33:10,640 --> 00:33:13,480
Speaker 4: And as a matter of fact, it actually does this right. Yep,

693
00:33:13,480 --> 00:33:14,720
there's just way too much of that.

694
00:33:14,880 --> 00:33:17,039
Speaker 2: Yeah, there's a The National.

695
00:33:18,000 --> 00:33:22,880
Speaker 1: Association Manufacturers puts the all in cost in the United

696
00:33:22,960 --> 00:33:26,839
States on federal regulations three point a zero seven nine

697
00:33:26,960 --> 00:33:32,000
trillion dollars. In twenty twenty three dollars three point zero

698
00:33:32,119 --> 00:33:36,839
seven nine trillion, the manufacturing's entire economic output for the

699
00:33:36,880 --> 00:33:41,960
same year was two point nine to one trillion. That

700
00:33:42,039 --> 00:33:46,160
seems to me to be really, really costly. And it

701
00:33:46,200 --> 00:33:48,480
seems to me that that's a doubling of costs if

702
00:33:48,480 --> 00:33:51,799
I'm looking at that the right way. That's economic. The

703
00:33:51,920 --> 00:33:54,640
human factory you're talking about. I interviewed a guy years

704
00:33:54,680 --> 00:33:58,680
ago named doctor Howard Root, and he was He was

705
00:33:59,440 --> 00:34:03,480
a physician, surgeon, as I recalled, lived in Minnesota, and

706
00:34:03,559 --> 00:34:07,240
he'd gone from being a surgeon into making medical devices.

707
00:34:07,839 --> 00:34:10,000
So he looked at the surgery rooms and said, okay,

708
00:34:10,559 --> 00:34:12,079
you know what, if I were a doctor, I'd like

709
00:34:12,119 --> 00:34:14,719
a machine that did this and that. So he took

710
00:34:14,719 --> 00:34:17,599
his wealth, invested in this, found this team, and he

711
00:34:17,679 --> 00:34:21,400
had built about fifty new medical devices, and they were patented,

712
00:34:21,400 --> 00:34:23,239
et cetera. They were in the market, some of them

713
00:34:23,239 --> 00:34:25,960
are pre market, some post revenue doing very well, some

714
00:34:26,039 --> 00:34:28,800
pre revenue. One day he gets a knock on the

715
00:34:28,840 --> 00:34:31,920
door from a federal regulator and we need to look

716
00:34:31,960 --> 00:34:36,679
into some things. So what they looked into didn't involve

717
00:34:36,719 --> 00:34:43,000
violation of the law. There were absolutely no damages in

718
00:34:43,119 --> 00:34:46,920
terms of human beings. No one was physically harmed, not once.

719
00:34:47,880 --> 00:34:52,079
There were no complaints. There were no complaints. No customer

720
00:34:52,079 --> 00:34:55,239
had come and said this guy, you know, screwed us.

721
00:34:55,320 --> 00:34:58,880
That never happened. But that doesn't matter when you're talking

722
00:34:58,920 --> 00:35:02,360
about lies, when you're talking about a government that has

723
00:35:02,400 --> 00:35:06,239
become this ferocious thing. We said, we have this, we

724
00:35:06,280 --> 00:35:10,119
have a bounty, we have an expectation. They're supposed to

725
00:35:10,159 --> 00:35:13,079
earn revenue, and they need to bring people to their knees.

726
00:35:13,960 --> 00:35:15,519
So when you've got a government like this that is

727
00:35:15,559 --> 00:35:17,920
lording their power over others, the same thing that the

728
00:35:17,960 --> 00:35:20,679
Old Testament warns us about that Jesus himself said, do

729
00:35:20,800 --> 00:35:24,039
not load your power over others. That's what others do,

730
00:35:24,079 --> 00:35:27,320
but we Christians don't do this. It is this David

731
00:35:27,320 --> 00:35:32,000
and Golithing. It is this this Nebukinezer type entity that

732
00:35:32,039 --> 00:35:33,079
comes knocking its door.

733
00:35:33,760 --> 00:35:34,039
Speaker 4: Zach.

734
00:35:35,039 --> 00:35:39,000
Speaker 1: He went five years, one hundred and twenty one attorneys

735
00:35:39,480 --> 00:35:45,760
and twenty five million dollars to defend himself and he

736
00:35:45,800 --> 00:35:48,960
actually did get a jury trial. He went into a sanator,

737
00:35:49,480 --> 00:35:53,599
San Antonio jury room and he was vindicated. And yet

738
00:35:53,760 --> 00:35:56,559
does he get his money back. He has to sue

739
00:35:56,639 --> 00:35:58,719
and ask an administrative judge to get his money back.

740
00:35:58,840 --> 00:36:00,440
Do you know what they found out in this discovery's

741
00:36:00,480 --> 00:36:03,320
act why they did this. I'll share with you this

742
00:36:03,920 --> 00:36:06,639
a second on what they found in discoveries. We're talking

743
00:36:06,679 --> 00:36:10,360
about this big business. Remember that there are small businesses

744
00:36:10,400 --> 00:36:12,480
that have to operate in a regulation now, albeit not

745
00:36:12,559 --> 00:36:15,119
the same level. Alan soaps does not have the same

746
00:36:15,159 --> 00:36:17,920
regulatory headache that manufactures do or a z act does,

747
00:36:18,320 --> 00:36:21,960
but they're still swimming upstream, particularly because the big size,

748
00:36:22,039 --> 00:36:24,639
the big soap companies, they're in every store, they're in

749
00:36:24,719 --> 00:36:27,760
every hotel, everywhere you look, they're at. And Alan's just

750
00:36:27,760 --> 00:36:30,519
swimming upstream as well, because they've got a mission beyond soap,

751
00:36:30,719 --> 00:36:33,760
and it's about hiring people like Alan, who is thirteen,

752
00:36:33,800 --> 00:36:37,440
he's been through eighteen operations, he's nonverbal, he's way up

753
00:36:37,440 --> 00:36:38,679
on the autism spectrum.

754
00:36:38,880 --> 00:36:40,199
Speaker 2: And big companies that.

755
00:36:40,280 --> 00:36:42,159
Speaker 1: Say, hey, who cares like he's still buy soap and

756
00:36:42,199 --> 00:36:44,559
people buy it for him, and is carefa so they

757
00:36:44,559 --> 00:36:47,880
could buy it? Nope, Alan works there, he invents soaps. Now,

758
00:36:47,920 --> 00:36:50,440
his brother works there, and there's another young lady who

759
00:36:50,440 --> 00:36:53,039
works there. The mission is great soap made in America,

760
00:36:53,159 --> 00:36:55,800
all natural, made by a family with three generations of

761
00:36:55,800 --> 00:36:58,800
soap making expertise. All those things are true, but the

762
00:36:58,880 --> 00:37:01,119
greater mission is in playing people like this. So they've

763
00:37:01,119 --> 00:37:03,599
got the dignity of work. Because even in the Garden

764
00:37:03,599 --> 00:37:06,119
of Eden, we were to tend the garden. Even in

765
00:37:06,159 --> 00:37:07,880
the New Heaven and the New Earth, we're going to

766
00:37:07,920 --> 00:37:10,920
have work. These guys have work. So look given to

767
00:37:11,000 --> 00:37:13,280
the big companies keep buying the same soap that probably

768
00:37:13,280 --> 00:37:16,039
has terrible chemicals made with slave labor. Or go to

769
00:37:16,039 --> 00:37:19,280
Alan's it's Alansaps dot com slash todd. Get ten percent

770
00:37:19,280 --> 00:37:21,920
off everything there. It's Alan Soaps dot Com slash todd.

771
00:37:22,199 --> 00:37:25,760
So here's what they found, Zach and discovering someone at

772
00:37:25,800 --> 00:37:28,800
the DOJ at the highest possible levels, and you're talking

773
00:37:28,960 --> 00:37:32,599
Eric Holder type levels, was looking at the revenue. They

774
00:37:32,599 --> 00:37:35,639
were looking at the revenue they were getting from suing companies,

775
00:37:36,239 --> 00:37:38,400
and they didn't see enough coming out of the medical

776
00:37:38,440 --> 00:37:41,920
device business. Because they'd seen that the medical device business

777
00:37:42,000 --> 00:37:45,119
had been skyrocketing. There's all these new devices. We're not

778
00:37:45,159 --> 00:37:47,360
seeing what we'd expect to see in terms of revenue.

779
00:37:47,440 --> 00:37:49,800
We need to go make an example of one company

780
00:37:50,079 --> 00:37:52,840
to show them what we can do to medical device manufacturers,

781
00:37:53,119 --> 00:37:54,719
so we'll get the other ones when we sue them.

782
00:37:54,760 --> 00:37:57,519
Speaker 2: They're going to settle. So they were told, no matter what,

783
00:37:58,199 --> 00:38:00,400
you're going to stop this, and in.

784
00:38:00,360 --> 00:38:04,159
Speaker 1: Fact, he was told privately, he was told privately by

785
00:38:04,199 --> 00:38:07,639
federal regulators. Look, you got to understand something here. All

786
00:38:07,679 --> 00:38:09,639
we want as an example case, we just want you

787
00:38:09,679 --> 00:38:12,039
to settle. We don't want to put you through this,

788
00:38:12,119 --> 00:38:14,079
like even it's just a million bucks would be helpful,

789
00:38:15,159 --> 00:38:19,280
and he refused to do it. Twenty five million dollars

790
00:38:20,119 --> 00:38:22,679
and five years of his life to go through this,

791
00:38:22,960 --> 00:38:25,039
and the man had to hire eventually one hundred and

792
00:38:25,079 --> 00:38:30,119
twenty one attorneys. And here's what I think, Zach. Your

793
00:38:30,159 --> 00:38:33,280
corporate veil can be pierced. Right, My corporate veil can

794
00:38:33,320 --> 00:38:35,760
be pierced. If I get on and viciously, purposely lie

795
00:38:35,760 --> 00:38:38,400
about a person, my LLC is not going to help me.

796
00:38:38,880 --> 00:38:40,920
They're going to come and take me on as an individual.

797
00:38:41,000 --> 00:38:43,639
You know, forget your LLC. And in your case, if

798
00:38:43,679 --> 00:38:46,079
you went and did something you would never do, you

799
00:38:46,119 --> 00:38:48,800
didn't just violate fiduciary duty, but you stole, they could.

800
00:38:48,679 --> 00:38:50,159
Speaker 2: Go at you directly. They're not going to go put

801
00:38:50,159 --> 00:38:52,079
Bulwark Capital Management in jail. They'd come at you.

802
00:38:52,880 --> 00:38:55,480
Speaker 1: We have got to be able to go at people

803
00:38:55,639 --> 00:38:58,360
like this because it's not the DOJ that did this,

804
00:38:58,440 --> 00:39:01,719
it's individuals that did this. We've got to recapture the

805
00:39:01,760 --> 00:39:04,679
ability to go with these regulators and say you broke

806
00:39:05,000 --> 00:39:07,239
you know, you didn't just break the law, you're stealing

807
00:39:07,239 --> 00:39:08,679
from people. We need to be able to put people

808
00:39:08,679 --> 00:39:09,480
like that in prison.

809
00:39:10,559 --> 00:39:13,400
Speaker 5: Yeah, one hundred percent, hundred percent and and and that's why,

810
00:39:14,199 --> 00:39:15,840
you know, I get pushed back from people sometime.

811
00:39:16,079 --> 00:39:18,400
Speaker 4: Well just let the free market sort it out, you know.

812
00:39:18,440 --> 00:39:21,079
Speaker 5: And and and what you just what you just outlined

813
00:39:21,159 --> 00:39:23,719
right there for me is reasons why you know you

814
00:39:23,840 --> 00:39:27,639
need you need regulators if it's if it's for no

815
00:39:27,719 --> 00:39:31,599
other reason other than putting the bad guys away. But

816
00:39:31,599 --> 00:39:36,960
but people just have to understand that again, the deep

817
00:39:37,000 --> 00:39:39,320
state issue, the quote I even hate, like you said,

818
00:39:39,320 --> 00:39:41,239
I hate using the term because it's got so much

819
00:39:41,280 --> 00:39:45,840
political connotation around it, and it really it it the

820
00:39:45,880 --> 00:39:50,000
way the setup works, with the the the unquestioned power

821
00:39:50,079 --> 00:39:54,000
and the un checkable power that so many of these

822
00:39:54,039 --> 00:39:58,039
regulators have. It's a disservice to all of us. And

823
00:39:57,840 --> 00:40:01,599
and it's really really hard to make the mark.

824
00:40:02,360 --> 00:40:06,599
Speaker 4: That in best a lot of it is unneeded nuisance

825
00:40:06,639 --> 00:40:07,599
and unneeded cost.

826
00:40:08,199 --> 00:40:11,000
Speaker 5: And in a lot of cases it's it's not it's

827
00:40:11,239 --> 00:40:14,960
a violation of our constitutional rights. And now kit tip

828
00:40:15,000 --> 00:40:17,159
of the cap to the Supreme Court for shooting that

829
00:40:17,159 --> 00:40:20,960
that provision down, So no longer if somebody is going

830
00:40:21,000 --> 00:40:22,960
to get the book thrown at them, they are required

831
00:40:23,000 --> 00:40:26,239
to go through the traditional process. Now, But I mean,

832
00:40:26,840 --> 00:40:28,480
you know that rule was on the law. I don't

833
00:40:28,519 --> 00:40:30,039
know how long it was on the books for, but

834
00:40:31,119 --> 00:40:34,400
I want to eat multiple decades, I believe. And it's

835
00:40:34,440 --> 00:40:37,480
just crazy when you think about the fact that some

836
00:40:37,559 --> 00:40:40,960
of these regulators have the ability to take your freedom

837
00:40:41,039 --> 00:40:44,760
from you and there's zero accountability because they don't get elected.

838
00:40:44,840 --> 00:40:45,920
Speaker 4: It's just it's wild.

839
00:40:46,280 --> 00:40:47,960
Speaker 2: So let's go through this and wrap this up.

840
00:40:48,000 --> 00:40:51,000
Speaker 1: You have unelected people who are not are spending your

841
00:40:51,039 --> 00:40:54,599
money to sue you, who can take away your right

842
00:40:54,679 --> 00:40:58,280
to a jury trial, and if they're wrong, who cares.

843
00:40:58,280 --> 00:41:01,400
They don't have to pay any penalty. You can't sue

844
00:41:01,400 --> 00:41:05,320
them as individuals. It's nearly impossible. Even if you're completely

845
00:41:05,360 --> 00:41:08,840
exonerated in front of a jury and you spent twenty

846
00:41:08,840 --> 00:41:11,960
five million dollars to defend yourself, you have to fight

847
00:41:12,159 --> 00:41:14,280
to get that money back by first of all, asking

848
00:41:14,320 --> 00:41:17,239
permission to sue the entity that did this to you,

849
00:41:17,400 --> 00:41:20,239
and in that person, you're you're asking a judge who

850
00:41:20,320 --> 00:41:21,360
works for that entity.

851
00:41:21,719 --> 00:41:25,760
Speaker 2: Can I sue your bosses? I mean, does that boil

852
00:41:25,800 --> 00:41:26,480
it down pretty well?

853
00:41:27,320 --> 00:41:28,599
Speaker 4: Yeah? Yeah it does.

854
00:41:28,800 --> 00:41:31,679
Speaker 5: And you know, again, I'm not nearly as familiar with

855
00:41:31,719 --> 00:41:34,280
other regulatory bodies as obviously I am with the SEC.

856
00:41:34,360 --> 00:41:37,159
But in a scenario like that where let's say the

857
00:41:37,239 --> 00:41:39,960
SEC was looking into something because they thought maybe somebody

858
00:41:40,000 --> 00:41:42,440
did something that they didn't do, and let's say that

859
00:41:42,519 --> 00:41:44,280
went on for you know, a year and a half

860
00:41:44,360 --> 00:41:46,760
two years and ended up running one hundred and fifty thousand.

861
00:41:46,440 --> 00:41:49,639
Speaker 4: Dollars legal bill. It unless the.

862
00:41:49,519 --> 00:41:52,960
Speaker 5: SEC lied, which I mean in most cases they're not.

863
00:41:53,000 --> 00:41:56,199
They don't, right, But even let's say they get to

864
00:41:56,239 --> 00:41:57,480
the end of that one and a half two year

865
00:41:57,519 --> 00:41:59,599
process and you're out one hundred and fifty thousand dollars

866
00:41:59,639 --> 00:42:02,960
in legal fees, there's nobody turn around and and there's

867
00:42:02,960 --> 00:42:08,800
no way to recoup those costs. So it really it again,

868
00:42:08,960 --> 00:42:13,079
it's just if if everybody had to feel the full

869
00:42:13,119 --> 00:42:18,280
weight of a regulator and look, uh, to be fair,

870
00:42:18,880 --> 00:42:21,079
I think there's a lot of great SEC people out

871
00:42:21,079 --> 00:42:23,280
there that have done some really good work and nab

872
00:42:23,360 --> 00:42:25,159
some bad guys. And I think it's the other, you know,

873
00:42:25,159 --> 00:42:26,719
it's the other thing we have to be cautious of

874
00:42:26,880 --> 00:42:28,840
is not color with too broad a brush. Right, It's

875
00:42:28,840 --> 00:42:31,719
really easy to do that, and we need that, We

876
00:42:31,760 --> 00:42:33,960
need those regular we need regulators. We just have to

877
00:42:33,960 --> 00:42:35,760
do it in a way that makes sense. And in

878
00:42:35,760 --> 00:42:38,440
so many of these cases it just doesn't. And and

879
00:42:38,440 --> 00:42:40,840
and like I said, it's a threat to everybody. It

880
00:42:40,880 --> 00:42:44,039
should be an a political issue, right, anybody's freedom is

881
00:42:44,039 --> 00:42:44,800
being impinged on.

882
00:42:44,880 --> 00:42:46,320
Speaker 4: It's a threat to everybody's freedom.

883
00:42:46,360 --> 00:42:49,519
Speaker 5: And you know, I I it's one of the one

884
00:42:49,559 --> 00:42:52,199
of the most frustrating things about this current political climate

885
00:42:52,280 --> 00:42:54,320
is where you know, some some of the some of

886
00:42:54,320 --> 00:42:57,039
the debates we're having are just so ridiculous.

887
00:42:57,039 --> 00:43:01,039
Speaker 1: We'll just rename your firm of Bulwark sexual practices. And

888
00:43:01,079 --> 00:43:02,840
then you'll have the leftists come along and say.

889
00:43:02,800 --> 00:43:03,480
Speaker 4: Leave them alone.

890
00:43:04,760 --> 00:43:08,559
Speaker 2: Yes, leave them alone. It goes on to the bedroom man,

891
00:43:09,079 --> 00:43:09,719
what do you meg?

892
00:43:09,840 --> 00:43:10,039
Speaker 4: Look?

893
00:43:10,559 --> 00:43:12,719
Speaker 5: And that's why I get so ticked when I hear

894
00:43:12,800 --> 00:43:15,360
about this. Oh, make billionaires pay their fair share.

895
00:43:16,440 --> 00:43:19,039
Speaker 4: You want to know why it hasn't happened.

896
00:43:20,360 --> 00:43:25,760
Speaker 5: Look, the easiest bill to pass in the entire country

897
00:43:26,199 --> 00:43:28,679
would to get be to get rid of the carried

898
00:43:28,719 --> 00:43:33,159
interest loophole that hedge funders are hedge fund guys and

899
00:43:33,239 --> 00:43:35,880
Citadel and Blackrock and all these guys were able to

900
00:43:35,880 --> 00:43:39,119
take advantage of. Right, if you wouldn't have a single pushback,

901
00:43:39,199 --> 00:43:41,880
it would be accepted, it would be applauded on both

902
00:43:41,920 --> 00:43:42,719
sides of the aisle.

903
00:43:43,039 --> 00:43:44,840
Speaker 4: Do you know why it hasn't been done.

904
00:43:45,519 --> 00:43:48,199
Speaker 5: It hasn't been done because these guys pay a lot

905
00:43:48,239 --> 00:43:49,760
of money to keep it from being done.

906
00:43:49,840 --> 00:43:52,199
Speaker 1: You got another right, we're closing out, But you got

907
00:43:52,199 --> 00:43:54,440
to explain carried interest because now there's people like me

908
00:43:54,559 --> 00:43:57,800
thinking I understand, but I don't really understand. So explain

909
00:43:57,880 --> 00:44:00,000
this is this where you can take the loss from

910
00:44:00,119 --> 00:44:02,559
one fund and shifted over to the other, and then

911
00:44:02,639 --> 00:44:04,599
put the carried interest and continue to carry not pay

912
00:44:04,639 --> 00:44:05,039
taxes on.

913
00:44:05,039 --> 00:44:06,039
Speaker 2: That is what you're talking about.

914
00:44:06,280 --> 00:44:08,360
Speaker 5: Look, there's a bunch of different variations of it, but

915
00:44:08,400 --> 00:44:11,199
one of the easiest ways to understand is this. If

916
00:44:11,199 --> 00:44:15,400
I make money owning an asset, right, and that asset

917
00:44:15,480 --> 00:44:17,960
goes up and I sell that asset for a gain,

918
00:44:18,039 --> 00:44:19,360
I owe capital gains tax.

919
00:44:19,599 --> 00:44:20,000
Speaker 2: Okay.

920
00:44:20,480 --> 00:44:22,880
Speaker 5: The way these hedge funders make the majority of their

921
00:44:22,880 --> 00:44:26,119
money is by a performance bonus, so they get a

922
00:44:26,199 --> 00:44:29,039
portion of the profit that they generate in clients accounts,

923
00:44:29,079 --> 00:44:31,719
which great, it's again skinning the game.

924
00:44:31,760 --> 00:44:35,480
Speaker 4: I'm all for it, right, but they allow.

925
00:44:35,239 --> 00:44:40,119
Speaker 5: That same treatment effectively, and this is a very oversimplified

926
00:44:40,119 --> 00:44:43,840
way of explaining it, but it'll get the concept across basically,

927
00:44:43,960 --> 00:44:46,159
rather than paying. So let's say that hedge fund guy

928
00:44:46,199 --> 00:44:47,920
makes five hundred million that year because they have a

929
00:44:47,960 --> 00:44:51,199
really good year. Well, tax wise, he gets taxed like

930
00:44:51,239 --> 00:44:54,519
a capital gain as opposed to income tax. Okay, and

931
00:44:54,559 --> 00:44:58,840
he shouldn't, right if it? You know, why why should

932
00:44:58,840 --> 00:45:00,679
he he should pay? That's his income, That's what he

933
00:45:00,719 --> 00:45:04,000
made the r Right, it's like a commission. You got

934
00:45:04,000 --> 00:45:06,679
to you got to pay income tax on commissions. So

935
00:45:07,760 --> 00:45:10,400
why would you get that? Well, the reason that you know,

936
00:45:10,480 --> 00:45:12,480
Camal is out there. We're going to make billionaires pay

937
00:45:12,480 --> 00:45:14,599
their fit and no, no you're not, No you're not because

938
00:45:14,639 --> 00:45:17,960
too many of them are funding your campaign. Like I said, yeah,

939
00:45:17,960 --> 00:45:21,440
they're all funding the campaign. And to be to be fair, hey,

940
00:45:21,519 --> 00:45:24,320
it's been true of Republicans and Democrats in office. Right this,

941
00:45:24,320 --> 00:45:26,519
this law could have gone, but I did. That's why

942
00:45:26,559 --> 00:45:27,440
it's so nauseating.

943
00:45:27,440 --> 00:45:28,719
Speaker 4: We're going to make no, you know what we're going

944
00:45:28,800 --> 00:45:29,000
to do.

945
00:45:29,239 --> 00:45:31,880
Speaker 5: We're going to devise tax law on regulation that sticks

946
00:45:31,880 --> 00:45:33,480
it to small business owners and then we're going to

947
00:45:33,519 --> 00:45:35,599
tell you we helped you somehow, Right, that's what we're

948
00:45:35,639 --> 00:45:35,960
going to do.

949
00:45:36,159 --> 00:45:37,840
Speaker 4: We're not going to do anything about relion.

950
00:45:37,639 --> 00:45:39,920
Speaker 1: And I'm going to continue to invent business models called

951
00:45:40,159 --> 00:45:42,239
force people to purchase products they don't want from companies

952
00:45:42,239 --> 00:45:44,599
they don't like, at prices they can afford, for services.

953
00:45:44,199 --> 00:45:44,760
Speaker 2: They don't need.

954
00:45:45,280 --> 00:45:48,880
Speaker 1: It's the typical Washington, DC business model, which is why

955
00:45:48,920 --> 00:45:50,320
we do not look for a hope from d C,

956
00:45:50,519 --> 00:45:53,159
but from every word that comes forth, from the word

957
00:45:53,199 --> 00:45:55,800
of God and from the mouth of God. Zach, appreciate

958
00:45:55,840 --> 00:45:59,239
you coming on as always wise counsel. And do fire

959
00:45:59,320 --> 00:46:01,840
up that private maybe the private helicopter, maybe both of them,

960
00:46:01,840 --> 00:46:04,800
maybe the spacecraft, and come and see me here in Mississippi.

961
00:46:04,800 --> 00:46:05,519
Speaker 2: Appreciate you, brother.

962
00:46:06,199 --> 00:46:08,559
Speaker 4: All right, man, God bless it good to beyond.

963
00:46:08,960 --> 00:46:10,000
Speaker 2: This is the Todd Durmanshew.

964
00:46:10,039 --> 00:46:12,599
Speaker 1: Please go be well, be strong, be kind, Please make

965
00:46:12,639 --> 00:46:15,320
every effort to walk and I mean really walk in

966
00:46:15,480 --> 00:46:16,440
the light of Christ.