Announcer: Welcome to Creating Wealth with Jason Hartman, President of Platinum Properties Investor Network in Costa Mesa, California.  During this program, Jason is going to tell you some really exciting things that you probably haven’t thought of before and a new slant on investing, fresh new approaches to America’s best investment that will enable you to create more wealth and happiness than you ever thought possible.

Jason is a genuine self-made multimillionaire, who not only talks the talk, but walks the walk.  He’s been a successful investor for 20 years and currently owns properties in 11 states and 17 cities.  This program will help you follow in Jason’s footsteps on the road to financial freedom.  You really can do it.  And now, here’s your host, Jason Hartman, with the complete solution for real estate investors.

Jason Hartman: Good day and welcome to another edition of Creating Wealth.  This is your host Jason Hartman.  Glad you’re with me here for Show No. 76.  For those new listeners, please go to www.jasonhartman.com and start listening with our Core Content.  That will make our philosophy much more sensible to you and that’s the best place to start.  Go to www.jasonhartman.com and listen to Core Content first, where we’ve segmented what we consider to be our sort of core podcast episodes for you all in one place.

And of course, we can’t distinguish those on iTunes unfortunately, so if you’re listening with your iPhone or your iPod, or using iTunes software, you’ll just be listening in order, and you may have just found us.  We want to make sure you get the core foundational content first before you get sort of all of the other information, which builds on it.

And if you’re new to the show as well, most of our listeners say they found us, they love the show, and we appreciate the fact that you love the show, and they go back and listen to all of former episodes.  So we definitely encourage that as well.

Today, we’ve got a great show for you.  We’ve got an interview I did just last week with writer and director, James Jaeger, the writer and director of Fiat Empire.  That’s a movie, by the way, an excellent movie.  I saw it recently.  And he’s also got a new movie coming out entitled “Original Intent.”  So I think you’ll like this, so listen in for that.  We’ll get to that in a few minutes here.

First, I’ve got some questions I’d like to take and a few announcements I want to give you.  Be sure to listen to the end of our shows.  Some of you may be quitting and not listening to the end where we have some announcements on various things we have coming up and we don’t want to have you miss those.  And I can tell sometimes by the questions I get that some of our listeners are not hearing those, so please listen all the way through, if at all possible.

Make sure you check our website at www.jasonhartman.com for our new Members Only section, where we’ve got a lot of content from our guests; audio files, PDF files, Power Point files, where you can see slides of presentations they’re giving and so forth.  And that’s in the Members Only section.  It only takes about ten seconds to join.

And also, at the www.jasonhartman.com website, you can find the Bookstore.  And again, we thank Steve for suggesting that we get our bookstore up, and a lot of you seem to be giving us some very good feedback on it.  So we’re constantly adding new books and audio programs, the Amazon.com that we’re listening to and we’re researching and we like and recommend to you.

So a couple of questions in the Ask Jason section at www.jasonhartman.com.  We’re getting submissions there and this one comes from Drew Baker, and Drew is a fan of the show and, Drew, we appreciate you listening.  He has – by the way, I have to mention a great product that his company sells.  I know him because he’s been to our events.  It is something you can check out – I use it myself – at Inkbags.com.  And if you have an inkjet printer, the whole business model of inkjet printers is like razors and razor blades, sort of the Gillette model where they sell you the razor really cheap, but the blades are expensive, right?  And that’s how they keep you coming back.  Same is true with inkjet printers, or really any printer, but inkjets especially, where they sell you the printer really inexpensively, but you gotta buy the ink that’s so expensive.

And Drew sent these ink bags up for me recently and I tell you I have been printing like crazy and I just can’t seem to get to the point where I need replacement ink bags.  And before that, I was using the official cartridges that Hewlett-Packard sold me and boy that was expensive.  So he really saved me some money.  I appreciate that.  Check it out, www.inkbags.com.

So Drew asked here, “Jason, I enjoy the guests you’re showcasing weekly.  Will there be any missed opportunities or incentives by buying an investment property over my first home that I want to live in for myself?  I know the government offers different incentives for first-time homebuyers and I would like to have that $400,000.00 house here in Southern California and then buy $150,000.00 or so investment properties around the country that I can rent out to other people.  I’m leery about spending money I have saved for a down payment on my first home on investment property instead because when prices here in California come down a little bit more, I will have spent my savings on investment properties and I may miss the boat when the right time comes along to buy in Southern California.”

That question is a common question among young people like yourself, Drew, and my answer to that is this.  Your home is a liability.  Investment properties are an asset.  A home costs you money.  Investment properties, properly done, create wealth for you.  So I would say that in any case, almost any case, you’re going to be better off doing investment properties than you’re going to be doing your own house.

Now, the California market has probably another 10 – 15 percent decline in prices ahead of it, in my humble opinion.  I could be wrong.  That’s my general disclaimer for everything I say to you on the show, but so far, my track record is pretty darn good.  And even when prices come down in California, the rental equivalent will make it more sensible for you to be a renter in Southern California where you live, rather than be an owner.

So I would say get your rental properties, diversified in multiple geographical markets, spread around the United States, and I just think that’s the best plan.  Many of my friends, who are in their late 20’s, early 30’s, mid-30’s, are asking this very same question.  Maybe they’ve got one investment property in another part of the country and they just want to buy that first home in California to have that pride of ownership.  And I say that pretty much that’s not a very good deal in almost any case.  So I would be buying investment properties.

And the other thing that Drew says is, “P.S.  G. Edward Griffin is coming up on your show.  Wow!  He’s my hero.”  Also, he has questions for him, so we’ll get to those on the future show.  We have G. Edward Griffin interview and he is, of course, the author of The Creature from Jekyll Island, a very famous book about the evils of central banking and that interview will be coming up.

And by the way, that’s what this show is about, too, so listen in when we get started on the interview.

Another question from Elizabeth Alex, and Elizabeth asks, “I listen to all of your podcasts and would like to round out my learning with your free CD.  Excellent work.”  Well, I guess she doesn’t have a question, but we appreciate the positive comments, Elizabeth.  Thank you very much.

And by the way, I have one of my own comments for you.  Some of you have asked this, but I didn’t get a formal Ask Jason request, about the interview with Harry Dent last week.  And of course, I qualified some of that interview with my comments prior to the interview.  But one of the things I forgot to mention to you was this and it’s sort of an interesting thing about Harry Dent.  He says that inflation he does not believe is really a monetary phenomenon, but rather a demographics phenomenon, when he talks about how his prediction is kind of contrary to mine frankly, where he says we’re going to experience inflation for the next two years or so until the Gen Y group really gets settled in the workforce, and they will create deflation.

Now, I have to tell you, I disagree with Harry Dent on this.  Now, maybe I don’t understand it.  I did ask him the question and he answered it on the show last week, but I don’t agree with it or I don’t understand it because I think we have dramatic inflation coming our way.

There has been no time in history, folks, where the Central Bank of a country or the government cartel, the conspiracy of the two of these entities, can create money out of thin air and not have inflation.  So far as I know in my studies, that has never before happened that way in human history, whether it be from ancient Rome to the Weimar Republic in the early 1900s in Germany to present day America to Zimbabwe to multiple countries all around the world.  If you create more fiat money, you will have inflation, as surely as the sun will rise and set tomorrow, as surely as if I walk off of the top roof of our office building, which by the way, 12 stories high, I will fall to the ground and die.  If you print more money or you create more money, you will create inflation.

So I think we have a lot of inflation coming at us and, with history as our guide, they all like to say it’s different this time and all of those people that say that, they’re pretty much proved wrong every time.  There are certain laws of the universe, laws of physics, that you can’t circumvent these laws.  Create more money, you will have more dollars chasing fewer goods and services, and that is the very definition of inflation and the very result of inflation.

Okay, Gary Dedmun asks, “I do not have dollars to invest right now, but I’m looking for investors to sell my properties.”  Okay, so I guess Gary is a developer and, Gary, we’re certainly always interested in looking at new properties for our network and for our clients, but I do have to tell you we are extremely picky.  The first of the Ten Commandments is thou shall become educated.  The second of the Ten Commandments is thou shalt have a professional investment counselor, who practices what they preach.  At Platinum Properties Investor Network, we practice what we preach and we are extremely picky about the properties we recommend to our clients.

We’re not always right.  We could be wrong, okay?  We are trying to predict the future here to some extent and again, one of our other rules is the property must make sense the day you buy it or you don’t buy it.  So you be the judge of that.  We use the Property Tracker software to evaluate and screen properties.  We use our own knowledge and our own education that we talk about on the shows.  And the one thing that I would say to all of you listening, who are interested in investing with us, is that you should judge us by what we turn down as much as by what we recommend.  And let me tell you, we turn down properties multiple times every single week.  So we turn down a lot of stuff.

And you know generally why we turn down properties is because the person who’s promoting the property to us, whether it be a local broker in this area or a developer in a certain area who wants us to recommend properties to you, you know what – when you get down to the bottom line in looking at these properties, it seems like they usually have a hard time answering two very simple questions.  And these are the first round of our screening process.  No. 1 question is how much does it cost.  And the No. 2 question is how much rent will the investor receive.

And they skirt the issues on such simple questions in amazing ways.  They say well, you know, this has a rent guarantee.  Well, you know, this area’s got a new airport being built.  Well, you know, this area has a good future.  Blah, blah, blah, blah, blah.  That’s all interesting to us, but the first thing I want to know is how much does it cost and how much rent will our client receive on that property.  And is that rent real?  I mean is this rent really possible or is it the figment of your imagination?

So simple rules:  The property must make sense the day you buy it.  Why?  Because our target RV ratio is .7 percent.  That’s ideal.  A lot of our properties do much better than that, by the way.  And our acceptable RV ratio or rent-to-value ratio is .5 percent.  Anything below that doesn’t make any sense.

And one of the other things that I’ve mentioned before that I want you all to be very careful of is rent guarantees.  Remember; when a developer guarantees an artificially high rent, they may go bankrupt.  They may not be able to keep their promise to you.  Now, occasionally, we have rent guarantee properties we recommend, but one of the things I want you to always plan for and understand is the worst-case scenario.  So the worst-case scenario might be that that developer will sell that property to you, they will go bankrupt, they will not keep their promise in terms of their rent guarantee, and you need to always be looking at the actual market rent for that property.  So it may be a good deal.  The developer may well keep their promise.  Expect the best, plan for the worst, and that’s my advice.

Okay, last question.  Steve Wright of San Francisco asks the question, “Dear Jason, I’m an avid fan of your podcast and listen every week.  I currently own six rental properties and I want to know how I can qualify for loans to buy more rental properties during this great buying opportunity.  With Fannie Mae and Freddie Mac, their current guideline is that I can no longer qualify for investor loans.  Best regards, Steve.”

Steve, you are absolutely right.  This is a big challenge and you know what?  This challenge has hurt our business a bit, too.  Here’s what we’re recommending to our clients.  Here’s an example.  If you own your home, the home you live in, you are only allowed under current Fannie Mae and Freddie Mac guidelines, which are the vast majority of the mortgage market – there are a few exceptions out there.  But this is the vast majority of the market out there – you are currently only allowed to have a maximum of four – one, two, three, four – financed properties.

Oddly enough, they don’t really care about the loan amount of these financed properties.  So here’s our recommendation, depending on your financial situation and what you can afford, how much money you have to invest, etc, we would recommend you own your own home.  Okay, that one’s done.  There’s one financed property.  So the question now is how do we get the maximum bang for our buck on the next three properties we buy.

Well, Fannie Mae and Freddie Mac only really apply to residential properties and a residential property is defined as 1 – 4 units.  So what we would say is buy three four-plexes.  That will give you 12 more units, but still only four financed properties.  The next thing you do is you go ahead and if you have more money that you want to invest, is that you either buy apartment buildings – and by the way, we have a person here, a new person on our team, that is screening apartment properties in multiple markets all around the country.  And if you go to www.jasonhartman.com and click on Properties, we have some terrific apartment properties available, so check those out.

The thing about apartments is, since they’re over four units, the same rules do not apply because the property does a lot of the qualifying for you, rather than you the borrower doing the qualifying.  So that’s one way to approach it.  You’ve got to turn your attention to an apartment unit, anything over five units.  So we’ve got five-unit properties, we’ve got eight-unit properties, we’ve got 12-unit properties, we’ve got 120-unit properties, and everything in between.  So check that out at www.jasonhartman.com.  Click on Properties.

The next thing you can do is that we have a whole bunch of new – well, they’re new to us, but I should say newer, also, in age – REO or bank-owned foreclosure properties, and you can buy many of these properties.  These are really nice bank-owned foreclosure properties.  They’re not the junky ones.  These are in nice communities.  They’re newer.  They’re maybe a year old, 2 years old, 5 years old, 6 years old.  I think the oldest property we have as a bank-owned foreclosure REO property is 6 years old right now.  And these properties need a relatively minimal amount of work, maybe $3,000.00 in fix-up costs, $5,000.00 in fix-up costs.  Just check them out.  They’re all case-by-case basis at www.jasonhartman.com.

And what our investors are doing is they’re actually buying these properties with cash.  It’s amazing how good these perform with cash and you know from listening to prior episodes I’m not much of a fan of buying with cash, of course, because you don’t get the mortgage-induced debt relief.  But even buying these properties with cash could produce a return on your investment of about 16 percent, which beats the heck out of anything else out there.  And that’s with cash.  If you can refinance the properties later, you can improve your rates of return very, very nicely.

So that’s what we’re recommending to our investors now.  There’s a couple of other strategies that you have to adapt.  Yeah, it’s not as good as it was before, but boy, the prices and the incentives on some of these properties are really, really compelling.  So there’s a couple other options.  Call our investment counselors here at the office in Costa Mesa for more details on those, or go to the website and inquire there.  We’ll be glad to look at your personal situation – everybody’s situation is different – and help you with that.

Okay, I’ve been talking long enough.  Let’s get to the interview now with writer and director, James Jaeger of Fiat Empire and his new movie that is coming out, Original Intent.  I think you’ll enjoy this, and again, this is about the ills and the evils of central banking in the Federal Reserve, which I think is a total scam, one of the biggest lies ever perpetrated on the American public.  But as smart investors following our philosophy, you know what?  We’re winning because guess what?  We’ve learned how to game the system.  We’ve learned how to beat the central bankers at their own game and if you’re a new listener and don’t know what I mean by that, go listen to the Core Content, listen to some of the prior shows, or call our office, and you’ll get the details there.  All right, let’s listen in to the interview.

James Jaeger Interview

Jason Hartman: It’s my pleasure to have on the show James Jaeger, who is the writer and director of a great film entitled Fiat Empire and a new film that’s coming out as well.  James, welcome.

James Jaeger: Thank you, Jason.

Jason Hartman: It’s great to have you on the show.  Tell us about your new film and we’ll talk about the old one of course, too.

James Jaeger: Well, I guess about one and a half years prior to Ron Paul’s run for president, we got the idea of somehow getting Mr. Griffins book,  The Creature from Jekyll Island, put on film as I had read it around 1990 and I just called him and I just begged him.  I said, “Mr. Griffin, we gotta get this book made into a movie.”  So he was kind enough to finally, after five years of getting to know me, he granted us an option on it and we started making this film.  It was originally called The Creature from Jekyll Island based in honor of his book and it was supposed to be just a money-raising film, the idea being we’d raise some money and we’d do a series of documentaries on each chapter in his book, which I believe there’s six chapters, one hour of film each.

And so we found out that the millionaires just weren’t coming out of the woodwork offering us money to make a movie on this fantastic book about the Federal Reserve System.

Jason Hartman: I don’t think a lot of people really understand the danger of this type of system.  Otherwise, you’d have a lot more donations because the Federal Reserve is a dangerous animal, if you ask me.  But go ahead.

James Jaeger: Absolutely.  Well, you know it’s true.  Most people are not even aware that the Federal Reserve is a private bank and so to make a long story short, we basically turned the promo film into a 59-minute movie, “Fiat Empire.”  Somebody literally stole it from us and put it on the internet.  It went bananas at about 500,000 people for downloading it everyday.  And then Ron Paul ran for president and it just went nuts.  So about two or three million people downloaded and purchased it, and with the proceeds of that, we’re working on a new film with Ron Paul in it again, he is in it now, and Pat Buchanan, called “Original Intent.”  It’s about more focus on the Constitution in general.

Jason Hartman: Well, give us a little history of the Federal Reserve and what it’s all about and what it’s doing to our money in terms of inflation and so forth.

James Jaeger: Well, the Federal Reserve System was concocted in, basically, a secret meeting on Jekyll Island off the coast of Georgia in 1910.  And a number of people, main figures, about seven of them in the banking industry, got together and snuck away to this island, and they put together a plan for the Federal Reserve System, which would then pass as the Federal Reserve Act in 1913.

And basically, the public had no idea that these elite New York bankers were putting together another Central Bank in this country.  Now, in our history, previously, we’ve had two Central Banks in this country and every time the citizens find out that we have one of these kinds of banks, they get rid of it.  And what we mean by a Central Bank is this is a bank that issues money that’s not backed by gold or silver.  The Federal Reserve Act, when it came in, the money was backed by gold and silver.  In other words, in 1934, up until 1934, every dollar bill said on it, “This note is legal tender for all debts public and private and is redeemable in lawful money at the U.S. Treasury in gold.”

And basically, the first gold certificates came in in 1863, so all the money was backed by gold up until 1934, when the Gold Act made it illegal to own gold.  So the money was then removed from backing of gold.

Then we come on up to 1963 and silver further was discontinued, so our paper money was not backed by either gold or silver as of 1963.  And basically, this is in violation of the Constitution.  Article I, Section 8 and 10 of the United States Constitution, if your listeners care to get that out and study it, they will see it says that “no thing, but gold or silver are to be considered money.”

So what the Federal Reserve did, little by little, from 1913 on up to the present, they moved us slowly off of gold and silver.  And now, we have what is known as fiat currency, and that means money that has no value, not redeemable or backed by gold or silver, and it only gets its value from the fiat, the decree of the government that it is good.

And that’s where we are today.  We have a Federal Reserve also known as the Central Bank literally printing up endless amounts of this stuff.  They’re using it to fund all manner of welfare and warfare programs that that is now something like $10.7 trillion.  We have a trade deficit that’s running about $600 billion right now.  And it’s really serious.  As you can see, the whole financial community is melting down, but they never mention the word “fiat.”

Jason Hartman: Right, of course, because that’s off limits to tell the real truth about why we’re having the financial problems we are in this country and around the world.  Tell us about the relationship between the IRS and the Federal Reserve.  Why is that right around the same time period – before that, we had no income tax and then when we have this new Central Bank, the Federal Reserve, this private cartel, if you will, set up, we have the IRS enacted right about the same time period.  What is the relationship between the two of those major, major changes in our country happening right around 1913?

James Jaeger: Around that time, J.P. Morgan was basically the lender of last resort, which means when the banks had a run, people were afraid they couldn’t get their deposits out, J.P. Morgan stepped up, and he basically bailed everyone out.  Well, in 1913, three things happened and I ask you, is this a coincidence?  The Federal Reserve Act was passed in 1913.  The income tax amendment was passed.  And J.P. Morgan died in 1913.  So the Federal Reserve, in essence, basically took over J.P. Morgan’s post as lender of last resort.

But the way they do it this time is when they need to bail out someone, instead of using real money, real gold or silver, or money that’s actually created by human effort, they use fiat dollars printed up by the Federal Reserve System.

Jason Hartman: It seems the only reason we’re getting away with this and I think this is going to lead to massive inflation, this huge debt, these trade deficits, and what I call the $60 trillion time bomb of entitlements coming up over the next couple of decades, is to just massively inflate, which really is kind of a misleading word.  It means deflate the value of the dollar by inflating the amount of them in circulation, so inflation, I think, is kind of a misleading term in and of itself.

But it’s going to lead to rising prices because the only way out of this is to just print more fiat money, just create more fake money out of thin air, and pay in nominal dollars for Social Security, Medicare, Medicaid, and every other thing around.  And it seems as though the only reason the U.S. is getting away with this better than other governments is that we have the world’s reserve currency.  Can you speak to that a bit?

James Jaeger: Yes, that’s absolutely true.  With the Bretton Woods Conference of 1944, we set up the World Bank, IMF, and at that conference, the dollar was established as the world’s reserve currency.  And what that means is at that conference, they set up a scheme to fix the rate of exchange for all currencies in terms of dollars and the dollar at that time was also pegged to the price of gold, which I think was $35.00 an ounce.  So all international settlements were basically pegged to the price of gold and the dollar, the world reserve currency, it was also agreed during that time, I believe at that conference or thereafter, that oil and gold, oil would also be denominated in terms of dollars.

So basically, you’re absolutely right, Jason.  They inflate the money by printing up more of it and you’re right also that inflation is not rising prices.  Inflation means increasing the money supply, inflating the money supply.  This devalues every dollar out there.  It’s very similar to issuing more stock in a corporation.

Jason Hartman: Right, it dilutes all the shareholders.

James Jaeger: After all, Federal Reserve Notes were all basically shareholders of these things and the more they print them, the more they dilute everyone’s purchasing power.  So yeah, they are, basically.  One trick you can do is print up extra dollars and you pay off debt with inflated debt.  Now, it works at the government level.  It also works if you buy real estate.  I personally feel that one of the best things people can do is go out and buy real estate right now, especially income producing real estate, and rent it, utilitarian real estate, something that you can use yourself.

Jason Hartman: Right, so as the dollar declines, the debt is repaid.  It’s the same plan that our government uses.  They devalue their own currency in collusion with the Federal Reserve and so the dollar gets devalued and, poof, debt just disappears.  So if the country owes $10 trillion, you have 10 percent inflation, you only owe $9 trillion in real dollars.  It’s the most amazing scheme ever invented.  I mean it’s a great business plan for them.  We as individuals just have to learn to follow their lead.  I mean they’re setting a great example for us, right?  We can game the system.

James Jaeger: Well, yeah, we can for a while, but the problem is it’s ultimately a Ponzi scheme and the reason for that is because the money is debt.  Debt is money.  Every time a dollar comes into existence, it came into existence because a dollar of debt was created.  And the problem is as they create more – every dollar that’s created and in circulation is a dollar of principle on a loan also.  Well, where do you get the dollars to pay the interest on that loan?  You gotta print up more Federal Reserve Notes.  So as soon as you print up more Federal Reserve Notes, you create more principle that requires debt service.  Where do you get the debt service to service that additional principle?  You gotta print up more Federal Reserve Notes.

So it’s an endless Ponzi.  It’s going to be a matter of fact that – I don’t mean to be negative, but mathematically, there’s no way out.

Jason Hartman: It just can’t go on forever, so what is ultimately going to happen?  I mean I think there has to be a change in the currency, right, because that’s the only way to sort of hide the scheme.  The more conspiratorial people among us would think there’s going to be an Amero, a new currency like that.  Or some new denomination for what money is.  I don’t know.  How does this end?  What is the end game to it?  It’s just continuing the devaluation of the dollar?

James Jaeger: I have been thinking about this exact question for years now and I think that what’s going to happen is the exact opposite that we all think is going to happen.

Jason Hartman: Oh, interesting.

James Jaeger: We’re all thinking they’re going to create the Amero or the bank war, and I thought that for a while.  And then I got to thinking, why is the price of gold so low right now?  Well, here’s what I think is happening.  I think that the powers that be are either liquidating gold just to cover their margins in these hedge funds and keeping it down, but somehow, I just have a feeling in my gut that they are confiscating it and buying it up.  Somehow, they are acquiring it.

And this rumor that they may go back onto the Gold Standard, you just told me about that.  I hadn’t heard of that until 20 minutes ago.

Jason Hartman: I will send this article to you and also, for the listeners, I will post this rather interesting article in the Members Only section of our website at www.jasonhartman.com.  When you read this article, I can’t wait to hear your take on it.  But I don’t think this could happen because what it’s really saying is a moving back to a Gold Standard and that would ruin the party for the central bankers and the governments.

James Jaeger: Right, but here’s what they do.  Every time the fiat party gets out of control, and this has happened three times in this country so far – we had two Federal Reserve systems prior to this current one – the fiat money gets out of control, the bankers confiscate all the real assets of people – that’s real estate and all their hard property.  They did that in the ’30s.  And then, it’s not so silly to assume they might do the same thing.  They go back to the Gold Standard, get the economy back to zero, and then start to sneak in their fiat system all over again.

Jason Hartman: So it’s like a cycle that takes maybe 80 years to play out each time, or 100 years.

James Jaeger: Exactly because we’re all sitting here thinking to ourselves, well, they’re going to go the Amero and create another world fiat money, and that’s the obvious thing to do.  But they may be sneaky.  They may think, oh, they all know we’re going to do that, so we can’t do that.  So we’ll put them back on the gold system, we’ll make them all complacent, and then we’ll sneak the fiat money.  This time we’ll sneak a world fiat system back into place in the next 50 years.  Now that makes sense as a strategy.

Jason Hartman: And that concerns me because that’s called checkmate.  We have legal tender laws that say the dollar, the fake dollar, is good for all debts, public and private.  It says it right on there.  And so, under the legal tender laws, if you have a business, you have to accept those dollars.  If in my business, I said I only want people to buy in gold or in silver, I couldn’t do that.  That’s illegal for me to do.  So when you look at that, what if that was a worldwide thing where there really couldn’t be barter in any other system except the fiat currency.

James Jaeger: It’s very scary and they could very easily do that by basically declaring martial law on the currency, declaring a global fiat currency, and saying this is.  You can’t trade in anything else.  It could happen.  I mean we’re dealing with very shrewd, monetary scientists that somehow have a psychopathic gene.

Jason Hartman: I agree.  They want control.  That’s what they want.  So I say, at least for the time being, we play the same game they play.  We use debt prudently and we let them devalue the dollar and let it just sort of repay our debt for us, which is a wonderful system.  I gotta ask you though.  Before the Federal Reserve, before 1913, when you look at the people that are the apologists for the Fed and the Central Banking type system, they say that we had all these confusing currencies before.  Of course, before, there was the Continental and they say that there were panics and runs on banks.  What do you say to all of that as the justification for the Central Banking cartel?

James Jaeger: This might surprise some of your listeners, but I’m not for the total abolition of the Federal Reserve System.  I think the Federal Reserve System does have some good points to it and we should keep them, such as what you’re saying.  I don’t think that every bank issuing their bank notes is good.  It’s just not uniform enough.  You got all this crazy stuff going on.

Jason Hartman: Oh, that would be so confusing.  I completely agree with you.  That’s not going to work.

James Jaeger: And then I think the banking system does a great job of making it easy for me to transfer my money with credit cards and debits and just transfer here and there and there.  It’s great.  You don’t have to use paper or gold or silver.  If the Federal Reserve System simply resigned itself to maintaining the quality and security of the money, the uniformity of it, but made the money redeemable, constitutional gold or silver, as the Constitution says, got rid of the fiat money, and basically stopped with all the game-playing on Wall Street, I think we’d be fine.

Jason Hartman: Who knows if that would ever happen because it seems as long as you have people, you have agendas, and they all have their own selfish interests, and they’re going to abuse any sort of system like that.  But we’ll see.  Well, tell us more about your new movie.

James Jaeger: The first movie, “Fiat Empire,” deals with one place where Americans are failing to keep their government following the Constitution and that’s Article I, Section 8 and 10.  Then we got to thinking, gee, there’s other places in the Constitution where we’re not following the letter of the Constitution.  And so we developed a movie, which is more broad based to deal with the overall Constitution.  Then in my research on this subject, I started reading.  I read material from the left and I read materials from the right.  Being libertarian, I like to think I’m kind of in the middle.

Jason Hartman: Libertarians really are in the middle.  You’re really right about that, by the way.  Libertarians believe in personal freedom and the government getting out of our lives, so on one side, there’s a little bit of the Democrat leftist side that’s in that, and on the other side, there’s the right side, which is the more financial side and you got both.  It’s the best of both worlds.

James Jaeger: Absolutely.  I mean I believe in free markets.  I believe in free market capitalism and the Republicans used to believe in that.  Limited government, government out of our business, no regulation, liaise fare, capitalism.  On the other hand, I believe in many of the social programs that are going on, helping the poor, and a lot of the stuff that the left has to say.  But in reading the right and the left, I think there’s no better way to figure out what the right is doing than to read what the left says about them.  And then there’s no better way to figure out what the left is doing than to read what the right says about them because out of the mouths of your enemies comes truth.

So in reading these left/right books, I came to the conclusion that both the left and the right are destroying the Constitution and so we’ve titled the movie “Original Intent:  How Cultural Marxists and Corporate Fascists Are Destroying the U.S. Constitution.”

Jason Hartman: So what are they doing?

James Jaeger: And I’ll tell you, I know that I’m going to be successful with this movie when all of my friends from the Democrats scream at me and all my friends in the GOP scream at me.

Jason Hartman: They’re two sides of the same status coin.  You can’t trust either of them.  I mean people accuse me of being a Republican and I’m like the Republican Party left me years ago.

James Jaeger: Right, right, exactly.  So you know you’re doing the right thing.  But you know when you gotta get above this DemGOP – I call them the DemGOP – you gotta get above the DemGOP cockfight because that’s basically what the design is.  Keep the American public involved in the senseless bantering back and forth between the Democrats and the Republicans, when both Obama and McCain voted for the bailout.  If they were really different, one of them would have said no, don’t bailout them out, [inaudible].

Jason Hartman: They may act like they hate each other at times.  They may act like they’re fighting.  I’m just talking generally on both sides of the aisle.  But the fact is they’re all going out for drinks together.  They’re all part of the same club.  It’s like CNBC.  It’s a show.  When will people realize that CNBC is a feeder?  It’s a show.  It’s reality TV set up for gamblers that want to gamble on Wall Street.

James Jaeger: Absolutely.  It’s kind of like this.  The world has always been a dictatorial, totalitarian place and then along came these crazy people 500 years ago and set up this new country, came up with this new concept called self-government.  So here we are.  We’re supposed to be self-governing ourselves and little by little, we’re irresponsible and we’re letting this elite take over this government and start to dictate to us.  So my feeling is you’ve got to get back to the self-government or you’re going to end up in a global totalitarian high tech situation.

And I won’t get radical on your show because my friends out in California are basically trying to talk me into the idea of no government.  Let’s outsource everything.  I haven’t quite got to that point because I don’t precisely see how you cannot have some government.  But I’m actually starting to think to myself, “If you’re going to move from totalitarian government to self-government or to no government some day, in other words, internalize government into all the nodes of civilization, i.e. every human brain, as opposed to external as a government, somewhere, the weight station in between those two extremes is self-government.”  So I argue with them let’s get back to self-government before we start talking about no government.

Jason Hartman: Fair enough.  I agree.  Government certainly has its place, but the thing that’s so brilliant about the founding fathers and our Constitution is that they basically set up that document and the checks and balances system so that government wouldn’t impede the rights of the individual.  The government is there at the behest of the people, not the other way around.  That’s what’s so great about America is they wanted to guarantee that the government would not invade our lives and the government would not take unfair liberties against us.  That’s the whole point.  People have that flipped backwards.

I remember in the election, during the campaign, you hear Obama saying things and you think has he even read the Constitution?  Does he even know what it’s about?  They flipped the whole concept on their end.  But just finish up on your thought and then I want to ask you about Alan Greenspan.

James Jaeger: Well, just to finish up on “Original Intent,” we basically have interviewed Dr. Paul again for that.  He gave an incredible interview.  And then I interviewed Pat Buchanan because I’ve been reading his books and I noticed that Pat Buchanan in his books is not the same Pat Buchanan you see on mainstream television.  The version you see on mainstream television is like a very thin spectrum of what he is really all about and I know some of your listeners out there may not like Pat Buchanan, but I say give him a chance.  Read his books and you will find out that he has a lot of opinions about the corporatocracy, about cultural Marxism, which really is both sides of the spectrum.  And I think that he’s a little more balanced than a lot of people give him credit for, even though he could be labeled as a traditionalist.

Jason Hartman: I completely agree with you.  Pat Buchanan in one of his books – I’m not sure if it was State of Emergency or Death of the West, but he talks about the corporatocracy in a sense and he says that corporations used to be like American corporations and the corporation today has no soul, it has no base of operation.  It just moves in and out of the most favorable tax haven.  It has no loyalty.  It’s kind of like free agency in sports.  There’s no home team anymore.  The home team is an amalgamation of whoever can afford to pay the players the most.  And that’s what’s going on in the business world.

James Jaeger: Absolutely.  It’s gutted America.

Jason Hartman: Yeah, it has.  It really has.

James Jaeger: So we talk about that at length in “Fiat Empire,” the gutting of the middle class, the outsourcing of America, the so-called free trade paradigm and is it really good for us.  And we go into Hamilton’s vision of how this country should be operated.  We also look at Jefferson’s vision and try to balance those two.  And we just set up a site called Original Intent USA.org.  Your listeners can follow off that and they can also access “Original Intent” by going to the www.fiatempire.com site.

Jason Hartman: So when will people be able to buy a DVD of “Original Intent?”

James Jaeger: August of 2009.

Jason Hartman: Okay, so Alan Greenspan.

James Jaeger: Alan Greenspan is – I like Alan Greenspan.  I think he’s great.  I just think he’s a good guy that somehow has been corrupted by the evil empire because he originally believed in gold.  He’s a gold bug.  He’s a libertarian.  Most people are not aware of that.

Jason Hartman: He sure didn’t act like one the last couple decades.

James Jaeger: No.  I want to get Greenspan on and I want to get him to be able to say to him, Mr. Greenspan, why don’t you admit that fiat money is crashing and burning in this country and get back to your core belief that gold and silver should be the basis of the monetary system.

Jason Hartman: Well, I’ll tell you, James.  I was listening to an interview, a podcast of Bill Moyer’s, who I’m not a fan of generally.  But it was interesting because he had some economist on there – I can’t remember the name – talking to him about Alan Greenspan and about the financial crisis and he said isn’t this evidence that Greenspan, his prior love for Ayn Rand and Ayn Rand’s philosophies and so forth and her work, and having given a eulogy at her funeral.  And what they fail to tell you, at least in my opinion, is Greenspan did believe in that, but he’s a sellout.  I mean Greenspan seems like a sellout on free market principles, certainly by the way he acted as Federal Reserve Chair for so many years, he’s a sellout.

James Jaeger: But you gotta remember.  Greenspan’s not controlling the show.  Greenspan is nothing more than window dressing, like the President.  The actor.

Jason Hartman: Who’s controlling it?

James Jaeger: The control money masters are the people who can afford to keep themselves out of the papers that own the networks.  All of the networks and major media in the world are now owned by four domestic companies and two external ones.  All of the news is filtered and the people that dominate and control the money and Alan Greenspan and the Federal Reserve, they are supranational entities.  They have no country.  These people don’t appear on TV.  They’re not called before Congress.  These people call Congress before them.  Greenspan, he’s just taking orders from other paymasters.

Jason Hartman: I mean who is it, like the Bilderberg Group or how conspiratorial do you want to get here?

James Jaeger: No.  This is the point we try to make in “Fiat Empire.”  Nobody knows who they are and it’s impossible for you to tell me who they are.  That’s what power is.  True power means you can’t find out who somebody is.  They don’t have newspaper reporters and newspapers.  They own all of these corporations by using interlocking directorates.  If you want to find out how the world is wired together, read a book by G. Edward Griffin, called World without Cancer.  He explains in the second part of the book precisely how all the major corporations are owned and dominated and cult-controlled by various entities.  They use street stock.  They use basically their agents to control corporations.

You don’t have to own 51 percent of a public corporation to control it.  You only have to own 5 percent.  Ever wonder why there’s the 5 Percent Rule?  So the people that dominate, control Greenspan, as well as all U.S. presidents and I know some of you can say oh, this guy sounds like a conspiracy theorist.  I don’t believe in conspiracies.  I think these people are too powerful for that, when you basically control and dominate the money supply of the fiat Central Banks of the world.

And no, I’m not blaming this only on the Central international bankers because there’s a whole mix of various banking dynasties and families.  Basically, the people we see in the news and in Congress are all just basically servants.

Jason Hartman: It’s amazing.  Wow.  Well, tell us anything in closing that you’d like to say.

James Jaeger: I’m starting to have some major philosophical changes researching and doing these movies and trying to get this information out from an unbiased point of view.  I just think the left and the right are both destroying the country and the Constitution.  The cultural Marxists on the left are destroying all the cultural institutions, creating endless welfare programs.  And then you got the corporate fascists on the right, basically destroying the manufacturing base, picking up all the money, off shoring their high margin products, and tax havens, and claiming all their low margin profits in domestic.

And you gotta take a look at both sides, both wings, and how they’re destroying everything.  And I think that Americans need to get back to the Constitutional principles of limited government because only through limited government can you then someday maybe change the entire system by amending the Constitution, move us towards a world where we are a greater distributed management system.  In other words, not total world centralized government, but distributed management through all people basically, creating an emergent property, which we might know as some kind of a global government.  But that would be an individual based economic political system and not a collectivism-based totalitarian system.

So I really think we’re at a real crossroads right now and if the whole economic system melts down, which I do feel is inevitable – it’s gotta when you do the math because of the fact that money is debt – I think there’s going to be a time for people to rethink.  They’ve already rethought Marxism, socialism, fascism, but we might have to rethink capitalism, the aspect of capitalism, such as monopoly capitalism and runaway capitalism.  They aren’t working.

And I don’t think we do have a free market capitalist society right now.  We are a managed society and everyone’s claiming that we are a free market.  We’re not.  I think free market capitalism is the only way we’re going to get back to any kind of sanity.

Jason Hartman: Good thoughts there from James Jaeger.  Well, I hope everyone visits.  Give us the website one more time.

James Jaeger: People that want to watch “Fiat Empire” for free can go to www.fiatempire.com.  If they like the DVD or want to share it with people, the movie, which is on Google via .url, they can purchase DVDs and at that site, they can be directed to “Original Intent” where you can see clips of Ron Paul, G. Edward Griffin, Pat Buchanan, and various other people we interviewed, and watch the production progress.

Jason Hartman: Well, listen, I will send you a donation, okay?  That’s my commitment.  I promise I’ll make a donation to your cause because I really believe in it.  And by the way, I should mention to our listeners that we have an interview scheduled with G. Edward Griffin in January of next year.  So just in about two months here, we’ve got him in the show, so hopefully you’ll listen in for that as well, James.  I’d appreciate it.  James Jaeger thanks so much for being on the show.  We really appreciate it and we’ll look forward to having you back on in the future.

James Jaeger: Thanks for having me, Jason, and it was a pleasure.

Jason Hartman: Attention agents, brokers, and mortgage people.  Do you know that we cooperate?  Do you know that our network is an open system, that you can refer clients and outsource your investor clients to us and receive passive income?  It’s a really great opportunity.  All you have to do is register your clients at www.jasonhartman.com and tell them to attend one of our live events, our live educational seminars, listen to our podcast, go to the website, and request our free CD at www.jasonhartman.com.

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This material is the copyrighted creative work of either Jason Hartman, the Hartman Media Company, Platinum Properties Investor Network, Incorporated or the J. Hartman Company, all rights reserved.

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Duration:  55 minutes