Latest / Financial Survival Network / Karl Denninger Talks Libertarianism, Politics, Fear, Healthcare Reform - #6036

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Karl Denninger Talks Libertarianism, Politics, Fear, Healthcare Reform - #6036 · Financial Survival Network

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It is a felony to aid or a bet a person coming into this country
0:04
illegally. It's been a felony since the nineteen fifties. Okay, AUSC Section
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thirteen twenty four. And the other is price fixing fifteen USC. Chapter one,
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which is responsible for twenty percent of all GDP in the United States in
0:16
the form of medical care one form or another. Every one of those entities
0:20
violates that criminal felony law every single day. Disparate pricing of drugs across national
0:25
boundaries is illegal under Robinson Patman. These are laws about books. For one
0:30
hundred years, the government refuses to prosecute. You're listening to Carrie Let'sa's Financial
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Survival Network where you get valuable information you just can't find anywhere else to thrive
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in today's trying times. You need the Financial Survival Network now more than ever.
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Go to Financial Survivalnetwork dot com and get your free newsletter and gift.
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Financial Survival Network now more than ever, And welcome you are listening to and
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watching the Financial Survival Network. I'm your host, Kerrie Lutz. This person
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you're about to hear from, I've been trying to get him on the show
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for I think the past ten years he finally broke down and did me a
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favor and is coming on the show. And I mean that seriously. Carl
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Deninger, you see his work all over. Carl has been out there,
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good libertarian. Try to make it work. Carl. It's great to have
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you on the show so talking about libertarianism. So we have some hope to
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show that libertarian is really the way to go in Argentina. And I think
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El Salvador it seems to be breaking out across Latin America. What's your take
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on it? Well, I don't know about else Salvador. I think the
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jury's out on that. The Argentina election and what has happened since then is
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extraordinary. It goes against the pattern has been seen throughout history in that it
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is through history what you tend to get is more and more authoritarianism, more
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and more socialism, and usually when there is some kind of an uprising.
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Forevery George Washington, you give about ten Hitlers, and that's not so good.
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That the odds are not so good, Okay, I mean that's just
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that's the historical way of works, right. I mean, you know Wymart,
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Germany, and you know I'll mean, Paul pot Stalin, you can
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go down the list. It's now, yeah, Mile, I mean,
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you know it's it's numerous. Okay. Miley was very interesting because he came
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out right up front before the elections and said exactly what he was going to
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do, and was was entirely unapologetic about any of them. Okay, that
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that the the socialist system that Argentina had fallen into it, which by the
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way, ruined what was art well. Argentina I had one of the best
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per capita GDPs in the world prior to descending down that slow Okay, they
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had an extraordinarily prosperous and stable economy. It was fabulous, and then they
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ruined it. And he basically said, look, we're going to tear this
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all up. We're going to take the sledgehammer to those institutions and people that
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don't like it, and uh, you know, we're going to fix it.
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And of course you have to elect me in order for that to happen.
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But that's what's going to happen if you elect me. And a lot
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of people said, oh no, it doesn't really mean it. You know,
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five minutes after he gets into office, all this is going to go
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out the window and all this and that other. Well, he didn't mean
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it, and you know that's exactly what he did when he got in.
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So it's to me, I think it's an extraordinary demonstration that the people really
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can if they're willing to enforce it, impose discipline, and we'll see how
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it works out. It's the jury is still out on this, of course,
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it's still early, but but at this particular point, it looks very
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promising. And I think one of the biggest one of the biggest things that's
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driving that and making it possible. And the lesson we need to take from
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it in America is that we need to stop all of the violations of the
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law. Specifically when it comes to illegal immigration. It is a felony to
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aid or a bet a person coming into this country illegally. It's been a
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felony since the nineteen fifties AUSC. Section thirteen, twenty four. And the
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other is price fixing fifteen USC. Chapter one, which is responsible for twenty
4:30
percent of all GDP in the United States in the form of medical care in
4:34
one form or another. Every one of those entities violates that criminal felony law
4:40
every single day. Disparate pricing of drugs across national boundaries is illegal under Robinson
4:45
Patman, these are laws about books for one hundred years. The government refuses
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to prosecute, and since all you can do is sue, you can't prosecute.
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This leaves with the ordinary people in the country without a means of recourse.
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And it doesn't matter who both were, At least to this point,
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you get the same result. Neither. You know, the parties will tell
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you they're going to do this or that, and then they don't. Trump
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famously in twenty sixteen said he was going to solve this problem in the medical
5:13
system, and literally, on the night of the election, while I was
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sitting in a bar in Pensacola watching Returns come in with some friends, those
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three planks disappeared off of his platform and we're never seen again. So,
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you know, I mean, it is what it is. Now. Can
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we have a popular revolt in the political context in the United States, much
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like they had in Argentina, without violence and solve these problems? I don't
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know, but up until Miley was elected, I would have said that.
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You know, the last one hundred years, there's been a record of zero
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successes not all together. Chile was a major success. Yeah, Chile to
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some extent, but you know, I mean, then again, here we
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are in America, okay, and but now we've got now we've got my
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ley and so far he went like, guy, he's doing what he's doing
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exactly what you say he was gonna do. They went from a deficit,
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major deficit to surplus in like sixty days. Can you imagine if anyone was
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really serious about it, Like, there are ways to use a presidential power
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to shut down these agencies that nobody's ever done before. Because there's this impoundment
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authority. And there's one case with Nixon where he refused to spend the money.
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They lost the case, but the case was not this positive. Nobody's
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ever tried it again. It's like, just don't spend the money. Well,
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and probably you know, as I've pointed out to some other people,
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and nobody wants to take up the debate, have it with me, but
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it's but it is absolutely true. The last four years have taught you something
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very important. If you've paid any attention whatsoever, which is a human being
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are primarily during life? Fear same is true for investments. The same I
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mean but it's but I mean, that's what you saw with COVID, right,
7:05
I mean, sure we knew within the first couple of months from the
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CDC itself, not not you know, some tinfoil hatter guy, from the
7:13
actual CDC, that if you were under about the age of fifty, you
7:16
were more likely to die in a car accident than you were to die from
7:19
getting this virus. Yeah, and yet we all accept the risk of a
7:24
car accident every single day, right, that's just that's part of human life
7:28
in modern society. Okay, we all accept this, but all of a
7:30
sudden, something that is much less dangerous than that. And for people who
7:33
are under the age of about forty, it was ritually no threat. Well
7:39
it was. It was less than a tenth of that risk. Okay,
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Yet we managed to scare literally everybody into staying in their house, wearing diapers
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on their face, taking experimental medical treatments, you know, all sorts of
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crazy stuff. We locked kids out of school for two years and none of
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this and all now this. You know, sometimes fear is entirely rational.
8:01
If a mountain lion is stalking you, that's a rational thing, right,
8:05
He's probably gonna eat you. But the reality is that the only fear that
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drives people who have a lot of power and money is a fear of prison
8:16
because or being hanged. Because prison sucks. No matter how rich you are,
8:22
you can't buy your way out of it. I mean, you've got
8:24
a billion dollars, and arguably if you're wealthy, it sucks more than if
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you're poor, because someone who's really poor they may actually get a standard living
8:31
upgrade by going to jail. You know. Is that? But we somehow
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within our society that risk needs to come back onto the table, both for
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corporate malefactors and for government malefactors. And as it stands today, it doesn't
8:48
exist. I mean, we just found out recently that Zuckerberg's metah and this
8:56
showed up in a lawsuit. It was but they've got proof. Apparently they've
9:00
got receipts. The META was for a period of about three years, offering
9:03
a VPN service to their clients, to their customers, their users. Okay,
9:07
the true purpose of the VPN was to put a root certificate on your
9:11
phone so that they could intercept the analytical pad traffic going to places like Snapchat
9:16
their competitors. Okay, that's why you're tapping. If I did something like
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that, I'd go to prison for twenty years. Okay, that these guys
9:24
even contemplated and act like this again, you know, taking against you know,
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one hundred million people in the United States. That's insane, really,
9:35
and yet you know here it is, and they've got receipts that this is
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in fact what they did. They put a root certificate on these devices which
9:41
allowed them demand in the middle of the traffic and intercept it without the consumer
9:46
having any idea that was going on. And then and they were using this
9:48
to essentially spy on their competition. I mean that kind of thing, you
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know, you think about, I've done computer security essentially my entire professional career.
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It's what I do is software engineering, network stuff, and this kind
10:03
of thing. I ran an internet company in the nineties. I wouldn't have
10:05
I mean, I wouldn't even think about twice something that's nuts. That's pretty
10:11
ballsy. Yeah, but there it is. And so you know this is
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and there's obviously no fear within the corporate structure that company or anywhere else that
10:20
they're going to be arrested or tried for wire tapping. Federal wire trapping and
10:24
go to prison for twenty years, just the misunderstanding. Yeah, well,
10:28
so that's what you're describing. Those kind of the thing of all empires,
10:33
the first they have a moral collapse before the empire collapses. So we're living
10:39
in a time of greatly impaired morality of the moralistic relativism. And this is
10:46
what the schools have been teaching. Well, Carrie, I would I would
10:52
go So I think I'd back off a little from that because there have always
10:56
been people who don't give a wet crap about the morals and ethics. Okay,
11:03
you know what kept you from stealing horses in the wild West the possibility
11:07
that the posseum shot. Yeah, and you need to get shot or hanged.
11:11
Okay. And there was one sheriff. He was bad news if he
11:16
came after you, because he could hang you. But you were a lot
11:18
more worried about the twenty townspeople who made it their life's work to find you
11:24
and make sure that you came to justice one way or another. And if
11:26
you tried to not go, well, you didn't bother. The didn't bothered
11:31
with the trial. They just took care of the problem, you know.
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I mean there's always going to be somebody who doesn't care about deadling kids or
11:39
you know, whatever the offense is, Okay, the only reasonable interference with
11:45
those people, and the only way to stop them is for them to have
11:50
a fear, whether it's rational or not, that they're going to get caught
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and they're going to be punished. And finding people does not punish them for
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these kinds of offenses, because there's a lot of things that you can do
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to people that are not compensated for with money. Yeah, this is true.
12:09
It's true. So well, somewhere we lost our way here in this
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country. And you know, when you look, you look at like pictures
12:18
from one hundred years ago, and people got together. You saw them on
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the weekends. They were well even in the six fifties and sixties when we
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grew up, they're wearing like ties and jackets, and you know, it's
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just the the populace looks ugly. And there was no morbid obesity sixty years
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ago, you know, very little, very well, there always was little,
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okay, but yeah, when when I was you know, when I
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was in school, there was a fat kid, yeah, right, one
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or two. Now half the schools for that, Yeah, it's like unusual
12:56
kids are the thin ones. Yeah, it's and so I mean there's and
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I don't at you know, a lot of people say, well, you
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know, people are just lazy. They're sitting around their butts, you know,
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twiddling and playing video games. No, I think there's a little lot
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more really do then there. Oh it's the food. What fast is for
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food? Right? It's well yeah, and a lot of it is simply
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profit driven, the seed oil thing in particular. Yeah. Problem, And
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I mean I I'm I have Garmin Watch on my wrist here it tracks HRV
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overnight and if you want to see the truth about what screws with your metabolism
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by one of those that has that tracking capability on it. The one I
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have is a multi sport because I'm a runner as well. You don't have
13:41
to pay that kind of money to get that right to get it, but
13:48
you would be stunned. I mean I I can eat a single package product
13:52
cookie a couple of hours before BETT and it will show up in the overnight
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data. Really that's interesting because what's beard? Yeah, one beer will show
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up one beer, one beer. Huh amazing. Well, I'm going to
14:07
download that app or my my Apple Watch. I'm going to start to track
14:13
it as you know. It's no yeah that the trick is you got to
14:18
wear it all time because obviously it has to be on. You know,
14:20
you have to get the baseline established and things like that, right, and
14:24
and this is one of the problems I have with Lewis the Android and the
14:28
Apple ones is that they have to be charged to op and so it's inconvenient.
14:33
This is where the Garmin wins in that those a couple of weeks without
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having to be plugged in. All right, We're going to check it out
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for sure. Definitely. Hey, so you know, well the things are
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bad right now, there's no reason to give up hope here, right,
14:50
I mean Argentina being uh, you know, brought back from the ashes.
14:56
If Argentina can do it, anyone can do it. You know, elections
15:03
don't really settle anything in the United States, but this one looks like it's
15:07
going to be definitive to some extent, right, Yeah, I think you
15:13
know it's this is an interesting election because frankly, I'm voting for Casulu.
15:22
I cannot support either of the candidates. The major candidates are running and Kennedy
15:26
took himself out with his VPEP pick. Yeah, so now i'm you know,
15:33
and now I'm out in the wilderness again, screaming at the moon.
15:37
And there were enough reasons for me to question whether or not I could have
15:41
voted for Kennedy to begin with. But when he made his VP selection,
15:45
then that sealed it for me. Did he I know who? I know
15:50
him personally because we went to the same health club. And I don't want
15:54
to get into all of his character defects here, We've all got our share
15:58
of them. Well, this is one bad guy who you know, I
16:03
don't think I would vote for him for dogcatcher. Well, yeah, my
16:08
challenge with him is very similar to challenge er with McCain. With McCain ran.
16:12
And then there are certain people that I don't believe should be anywhere near
16:17
the levels of power. Yeah, and if they manage to get their hands
16:21
on them, they're probably going to do some very bad things. So,
16:25
you know, but I see this, say, I see the same sort
16:26
of problem with you know, with all the establishment cards. At this point,
16:30
I think if we actually have positive change, it's going to come out
16:33
of this the political process in this country. It's going to have to be
16:37
the people saying, look, the laws that stand on the books are laws,
16:41
they're not suggestions. It will enforce them, or we will and if
16:45
you try to stop us, we will stop you. And the thing is
16:49
is people say, well, you know you'll never do that. There's you
16:52
know, there's all these cops and everything, and say, look they're out
16:55
numbered three hundred and one. If the people of this country, even a
16:59
tiny person, were to be willing to put that marker on the table,
17:03
it would end tomorrow. Because you know, the police officer that wants to
17:07
go out arrest people guests leave his house in order to do that. Okay,
17:10
there's this is just the general The general reality is that the reason you
17:15
have a civil society is because people by and large don't do those kinds of
17:22
things. And there are people who say, well, that's vigil anti justice,
17:25
and my answer to that is, vigil anti justice is unacceptable because you
17:29
sorce, you short circuit due process. Okay, the accused are entitled to
17:33
due process of law. You're entitled themage, while you're entitled lists. Well,
17:37
if the government says they're never going to prosecute, then there is no
17:38
due process to short circuit and so putting the marker on the table that they
17:44
either they stop this or you're going to isn't vigilantism. It is it is
17:48
replacing the job that they took an oath to do and then deliberately refuse.
17:56
And that's that is not the same thing that is restoring back into the system
18:00
the fear that has to be there among people would otherwise do evil things because
18:04
there's always going to be someone who will be willing to do something evil.
18:08
Yeah, sure, there's never been. I mean, that's just pure humanity
18:12
going you do anything. Well, go read the Bible. It's a five
18:15
thousand year history of people doing evil things. Yeah, there's no shortage of
18:21
evil doers. But most people want to live by the rules and you know,
18:27
go to work, come home, be with their family. I mean
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that's what most people really want. But you do these sociopaths among us.
18:37
Unfortunately a lot of them are in government. Now. Well, it's attractive
18:40
when you when you don't have any risk of being punished. It's you know,
18:44
it's why why do you find you know, why did the Catholic Church
18:48
have a problem with great deadling boys? And the answer is it gave them
18:52
the opportunity to do the boys. Yeah, so if you were you had
18:56
a propensity to do that, if you didn't believe you'd be caught and puttish,
19:00
then you have a reason to be attracted to that sort of of a
19:03
vocation. Okay, Now that's not the reason you're supposed to want to be
19:07
a priest. And that's the problem with not having punishment and not having the
19:14
rule of law enforced, is that you end up attracting people into those kinds
19:18
of positions for reasons that are different than why they should be there. And
19:22
that's an extraordinarily bad situation. I mean, you look at what we have
19:26
going on right now with the budgetary situation in the United States Treasury just I
19:30
just saw a thing headline that came by today. The Treasury for the first
19:36
time is paid one trillion dollars in interest so far this now, by the
19:41
way, that is so you know, you'd think, because we're six months
19:44
into it, that that would mean it's going to be two trillion, right,
19:47
You'd actually be a little wrong on that. The actual forecast that I
19:49
have is one point six And the reason is Treasury interest is taxable, so
19:55
therefore you have to play federal income tax on the interest. Now think about
19:59
how but that is, first the government pays you, then you're part of
20:02
it. Back, Okay, that's dumb. By the way, one of
20:07
the things that you could do to control yield to some extent would be to
20:10
exempt treasury interest on incomes from federal income tax. Right, okay, Why
20:15
why isn't the municipal bonds tend to yield less than treasuries? Well, the
20:18
reason is because it's exempt from state income tax. So if you live in
20:22
a state taxable state, then you know, especially if you're in somewhere like
20:26
California has a very high tax rate, the communities are attractive even though they
20:32
pay less because you want to pay state income tax on the money. So
20:34
there is there is, and that you used to be federally exempt as well.
20:38
The problem is it's not for Maggie purposes, which means if you're if
20:42
you're using Obamacare, you get hammered by that. That was a surprise that
20:48
caught a lot of people when that law was passed. I caught it when
20:51
it was originally written and said, hey, guys, you know, if
20:53
you're in the here, you need to be thinking about getting out of them
20:56
because you know that benefit that you had is going to sucked back in the
21:00
form of losing your subsidy. Right, So all right, so look at
21:07
ahead here when we have this conversation four years in the next election, what
21:12
are things going to look like here? Well, I'm I am expecting that
21:18
the asset bubble problem is going to pop. I do not expect you're going
21:22
to see rate cuts at all out of powel. I know everybody's looking for
21:26
them. I said in my year, my look ahead year ticker at the
21:30
beginning of the year, and they're not going to happen. Ism Price is
21:33
Paid just came in accelerating, which is obviously obviously the exact opposite of what
21:38
you want if inflation is cooling. The bigger problem, though, is simply
21:42
that Treasury continues to run, you know, two trillion dollar deficits and unsustainable,
21:49
Well, rates cannot inflation will not come down, and therefore rates cannot
21:55
come down until that stops. And at some point Paul is going to have
21:59
to go in front of it and he's gonna have to bull vulgar. And
22:03
if I was in I would go into the Speaker's office and I would say,
22:06
look, if you want to see interest rates stop going up, because
22:11
if you look at what's happened just in the last couple of weeks in the
22:12
tenure and starting to accelerate upward again to go yeah yeah, if you want
22:18
to see that that trend stop and reverse, you need to kill the deficit.
22:22
And the only place you can do it is by going after the malefactors
22:26
in healthcare, because that's about forty percent. If people like to conflate this
22:32
thing, there's this the story's now going around about in the so called entitlement
22:37
reform, and everybody always lumps in Social Security and Medicare and Medicaid into one
22:41
bucket. Last fiscal year, social Security ran about a thirteen fourteen percent fiscal
22:47
deficit operating deficit versus tax receipts CMS, which is metter of aaron. Medicaid
22:52
ran in eighty percent operating deficit. Okay, one of those is easily fixed.
23:00
You could put one percent on the fighter tax rate and lift the exemption
23:03
limit by a modest amount and you would resolve that problem. They would be
23:07
cash flow neutral. Okay, fine, you'd have to multiply the Medicare tax
23:12
rate by five yeah, hey, which is not going to happen. Well,
23:17
that's not going to happen, so you have to go after the cost.
23:19
That's the only thing you can do is attack the monopolist practices. You're
23:25
going to end up firing a lot of people. But on the other hand,
23:27
that's a short term dislocation because that cost gets embedded into the cost of
23:32
every product and service that's made the United States. You take those costs out,
23:37
the US becomes more competitive and jobs come back here. I was,
23:41
I was in Thailand and then something happened in my eye. I had to
23:45
get laser surgery there. It costs seven hundred dollars and they had the latest
23:49
equipment Western train doctors seven hundred dollars here, it would have been five or
23:56
six thousand. Yeah. Well, my I can very easily find just mathematically
24:03
an eighty percent reduction in the cost of medical care by getting this stuff out
24:08
of the system. Yeah. And and people look at me like they're like
24:14
what I said? Well, yeah, And you know, by the way,
24:15
Medicare is an eighty twenty program. So if Medicare completely went away in
24:18
that system, under that paradigm, if it completely blew up, you'd pay
24:22
the same amount of money, because it'd be a fifth of what you pay.
24:25
Now, will you pay twenty percent? So percent' is still twenty percent.
24:29
Yeah, there'd be no difference to you. But for everybody else,
24:33
they wouldn't need medical insurance. You can just pay cash. Well, imagine
24:37
that. And that's what I did in Thailand, you know. And they
24:40
said they were complaining that their systems corrupt because of the Western influence there,
24:45
but they haven't gotten to our point yet because they can't afford to Well,
24:51
you know, Bernie Sanders was out there complaining that Ozembek is fifty six dollars
24:56
in Germany and it's a thousand here, okay for a month. Ply,
25:02
Well, Bernie should shut his face, because it is Congress that is responsible
25:07
to the fact that I cannot go buy a round trip ticket to Germany hearing
25:11
only a pair of change of underwear and a new shirt in my bag and
25:17
an empty suitcase. They go over there and fill that suitcase full of fifty
25:19
seven dollars here in the United States and sell it for one hundred and the
25:26
one thousand dollars price collapses in an afternoon. Right. But if I try
25:30
to do that, I go to prison. So this is you know,
25:33
this is a monopolist system that violates the law, and Congress has given cover
25:41
to it. And what they need to do instead is start throwing people in
25:44
prison because fifteen USC. Chapter one says that's illegal. Yeah, yep.
25:48
Well, they have these what do you call them, the companies, the
25:53
cooperatives that set it prescription drug prices, and those are a total scam.
25:59
Who owns one of them, it's cvs and they decide how much the drug
26:03
goes for, how much of a reimbursement there's going to be, and how
26:07
much that's going to make and based on their numbers here EBMs are illegal.
26:14
Yeah, but nobody but again, nobody goes to jail. These laws have
26:18
been on the books for over one hundred years. Sherman Clayton and Robinson Patman
26:21
have been on the literal one hundred years. So true. All right,
26:25
Carl, We do appreciate you coming on. We find you at market ticker
26:30
dot com. That the best place. It's dot org yet dot com market
26:36
hyphen ticker dot org. And if you look on the right hand side there
26:40
there's a link there. It says what the media does not want you to
26:42
read, which is the no ad side of the blog that does not have
26:47
any advertising, and that's all the stuff that the various ad networks will literally
26:52
blackball before if I publish. It really interesting that all started with COVID.
26:56
They went back to my articles about local beating these were ten years old at
27:02
the time, and threatened me with revoking my attica if I continue. Really
27:07
yeah, why does that not surprise me? Yeah? Well, low carb
27:11
is the key to a healthy living, for sure. I learned that the
27:14
hard way, but I'm doing it now. Hey, you got a question
27:18
for Carl or myself, Shoot me an email. Kyl at Carrie LUTs dot
27:22
com linked to carl site is in the show. That's this interview on Financial
27:27
Survival Network dot com and the while you're there, sign up for our free
27:32
newsletter. Carl. Been a total pleasure. I really appreciate you coming on
27:36
anytime. Thanks for listening to Carrie Letz's Financial Survival Network your solution to today's
27:42
trying times. For the latest, go to Financial Survivalnetwork dot com. Financial
27:48
Survival Network now more than ever