ABOUT THIS EPISODE
Wayne Allyn Root joins Coach Pete to discuss The Ultimate Obama Survival Guide. This July 2013 interview explores the financial, economic, and political ideas behind his book and his perspective as a business owner.
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Transcript
Automatically transcribed from this episode; timestamps are approximate.
00:00 And we've got a fantastic guest today. He's joining us from Las Vegas, Nevada. I've heard it called lost wages before. Las Vegas, Nevada. And he is the author of The Ultimate Obama Survival Guide, How to Survive, Thrive, and Prosper During Obamageddon. His name is Wayne Allen Root. Folks, you may have seen him as a host on CNBC. He's been on Fox. I mean, he's everywhere you look these days, and the book is fantastic. Wayne, welcome in. You know what's funny, Coach Pete, is I wrote this book as a political book. When you hear that title, The Ultimate Obama Survival Guide, it certainly sounds like a political book. And it opened up as the number one book in the United States of America at Amazon in the political category. But then the same day it went to number one in the finance category.
00:45 And the next day it went to number one in the economics category. And I think most people who bought it thought of it as a financial book, which is good, because I'm on your show, which is a financial show. So it started out as politics, but I'm a small businessman. And everything I write about, I write from a financial perspective, how it affects a businessman or woman like me. And that's what this book wound up becoming about. It went from politics really to being a finance book, telling you how to get your finances in order over the next, you know, over the second term of Barack Obama. Well, isn't it funny, though, how – and it's not really funny, I guess ironic – how politics and financial matters overlap? Well, they're the same thing. I mean, in other words, I've been a guy that's been in politics my whole life. I don't remember if you mentioned it in the opening. I don't think you did.
01:30 But you may not know I was the vice presidential candidate of the Libertarian Party in 2008. And so I was on the ticket. Bob Barr, the former Republican congressman, was the presidential candidate. I won the vice presidential nomination, and I'm a political observer and commentator on Fox News and thousands of conservative radio talk stations. But all I ever talk about is money because, to me, politics is about money. It's about the economy. Everything else is like number 10,001 on a list of what's important from 1 through 10,000. You know, abortion, gay marriage, stem cell research. None of it matters if you can't run a business. None of it matters if you don't have a job. It's like one of my heroes, Ronald Reagan, once said, you know, when your neighbor loses his job, it's a recession. When you lose your job, it's a depression and a tragedy.
02:19 And so if you can't find a job in this economy, does abortion really matter? All that matters is, first, you've got to be working. So I think politics is, first and foremost, about economics. And that's how I wrote – you know, that was the angle, how I wrote The Ultimate Obama Survival Guide. Well, it's a great book, too. And, yeah, here's what I talk to. I talk to people every single day throughout the nation. And what they tell me, Wayne, is they just want the government to leave them alone. They want to be left alone. Business owners are getting trampled by all these regulations, rules, taxes, you name it. We're getting trampled as small businessmen out here. Well, you're talking my language. And I come up with the facts. See, that's the problem is that very often people on the left and the Obama team doesn't like facts. And when you give them facts, they get scared and they try and change the topic and they demonize you.
03:05 So here's a fact. You know, you mentioned we don't want government in our lives. We just want to be left alone. Too many regulations. But did you know the exact number of regulations since January 1st until March 31st? I don't have updated numbers for the second quarter. But for the first quarter of 2013, the Barack Obama administration added 6,118 new government regulations. That's an average of 68 a day. Listen, Coach Pete, I don't know how that's possible. I think he's got like 24 hours a day sweatshop going. And lawyers are being whipped in the sweatshop to come up with ways to destroy business and block businessmen from making money. But how could you ever come up with 6,118 new government regulations in three months? And that came on the heels of the fourth quarter, which was terrible, right?
03:54 It was in retraction. Our country's going in reverse. And to solve the problem, they stuck 6,118 new regulations in the way of every businessman and woman in America. This is crazy. So I come up with stats that they can't debate. Nobody could argue with that. That's a real number. You know where I got it? Regulations.gov. I got it from the government's website. And guess what's happened since then? I don't have the updated final number, but I know that the average in April and May was 72 new government regulations a day. Remember now, I just said the first three months, it was 68 regulations a day. Now it's been 72. So the economy keeps getting worse, and they keep adding more regulations. And people wonder why there's a correlation between those two, or if there's a correlation.
04:42 You're darn right there's a correlation. One is causing the other. You can't run a business with 72 new regulations every day because no small businessman can possibly keep up with the regulation. Well, it's like an out-of-control train coming down the tracks, isn't it? Going faster and faster down the hill. Well, yeah, and you can't believe what you hear in the media. So many lies. You know, last month, or I should say last week or two, I guess it was about two weeks ago now, there was a new jobs report for the month before, the month prior, which was June. And the jobs report for June said 195,000 jobs created. And that was about a couple weeks ago. People were jumping up and down saying, well, the media was anyway, saying, what great news we're in recovery. Well, you know, if you read headlines, you're reading lies.
05:28 The headlines are set up so that you get excited and you buy the newspaper or you tune into the news show. But then when you go to the eighth paragraph, that's where they bury the real lead story, the facts. And if you dig down into the unemployment report, yes, overall, they claim 195,000 jobs are created, but they were all part-time jobs. Hey, Coach Pete, last month, 360,000 part-time jobs were created in the United States in one month. Guess how many full-time jobs are created? Zero. Zero. Negative 240,000. So we lost good jobs. We gained part-time jobs. And so when you look at the start of the year, since January 1st through July 1st, 130,000 full-time jobs are created in a country of 330 million people.
06:15 That's the total number of net positive full-time jobs created, 130,000. You need 100,000 a month just to keep equal with population and birth. You need 100,000 a month. We created 130,000 in six months. None of that deals with the 9 million or so people who lost their jobs in this Great Depression, number two. So when you talk about how bad things are, 101 million Americans are on food assistance. Only 97 million Americans have jobs in the private sector. So more people get food stamps and food checks from the government of all kinds. They have all kinds of names. They call it the overall umbrella is called food assistance. More people get checks from government to pay for their food than have jobs in the private sector in the United States in the year 2013.
07:02 If those numbers don't make you just open your jaw in awe, I don't know what else I could say to prove to you that the economy is in reverse right now. Yeah, and folks, we're talking to Wayne Allen Root. He's the author of The Ultimate Obama Survival Guide, How to Survive, Thrive, and Prosper During Obamageddon. And on the cover of the book, the book is almost 450 pages, by the way, folks, and a great read. On the cover, we have a comment from Ann Coulter. She says, Wayne shows you how to capitalize and prosper through hell. And that's what it sounds like here, Wayne, because as independent people out here, we're independent thinkers. We're trying to make our own money. We want to have our own retirement. And by the way, Obama says you can only have a certain amount of money in retirement plans now, which is crazy. How does the average American listening to our show right now who's trying to plan for retirement, how do they combat all the silliness out there in the political world to make sure their retirement is as comfortable as they wanted it to be?
07:56 Well, you know, before you worry about making money, I think you have to worry about protecting your money. I think that's the most important thing is protecting what you've got, even more than thinking, how can I double it or triple it? Because in this environment, the answer is you probably can't double it or triple it. It's very difficult. But you certainly better make sure you protect what's already there. So if you're listening right now and, you know, you make X amount of dollars and you have X amount of assets and you say, well, how do I protect it? Well, here's the first thing. I went out and I interviewed for my book 18 of the richest men in America. Okay? It just happened to be that somebody said, yes, I'll participate in your book, 18. That's where that number came from. I called them and 18 said yes, and they wrote 18 separate chapters. And then I went and looked at what they all had to say, and here's some of the commonalities that 18 men who are almost all worth $100 million or more said the average middle class person has to do.
08:45 Number one, here's the one thing they all agreed on, all 18. You have to move to a no-tax state. You have to get your assets to a Nevada, a Florida, a Texas, a Tennessee, an Alaska, a Wyoming. Those are the no-tax states in the United States. I live in Las Vegas, Nevada. See, I'm already ahead of the ballgame. I knew that 13 years ago. I moved to Las Vegas because I wanted to get the hell out of New York, California, two states that I had lived in most of my life. And I couldn't stand the taxes. And I moved to Nevada where the income tax rate is zero. So these really rich guys pointed out they don't understand how the average middle class person doesn't get this. These guys would say things to me like, I'm worth $100 million, Wayne, and I would never give an extra $1.50 to the state of California.
09:31 Why would 48 million people live in California and be willing to pay 13.3% state income tax when I'm worth $100 million? I wouldn't even think of paying that extra money to the state. That's why I live in Florida, Texas, or Nevada. That's where almost every one of the millionaires moved. And none of them started out there. So you've got to get there because they all pointed out that over a 40-year working career, you might have an extra half million to a million dollars on the day you retire just because you live in a no-tax state. So that was the first tip they all gave me. The second one was they all said don't worry about whether gold is going up or down today. In the long run, gold is the greatest insurance policy in the world. And over time, you'll always do great. Gold's done great for 5,000 years. It has done better than paper money issued by the United States government or any other government.
10:19 So gold is done fairly lousy of late, but it doesn't matter. That's a short-term blip. That's like predicting the stock market today or tomorrow. Over time, gold always does well. So here was the stat they gave me that just blew my mind, Coach Pete. I just couldn't believe it. In 1913, if you had a million dollars in cash stuffed in your mattress, today it would be worth $40,000. A million dollars in 1913 because of inflation and the value of the dollar has gone down so much is today worth $40,000. But if you put the same million dollars in gold, today it's worth somewhere north of $70 million. $40,000 versus $70 million in exactly 100 years, 1913 to 2013. How's that for a long-term positive appreciation?
11:07 So they said, don't worry if gold goes down this week or this month. Consider it a great buying opportunity. You're getting in cheaper. Over the long run, the U.S. dollar will go down. And we just recently heard Ben Bernanke just a couple weeks ago report that, yes, siri, the economy isn't so bad. We're going to continue QE3 and 4 and infinity. We're going to keep printing money because there is no choice. He just came out and finally admitted that. And that's going to make gold go up in the near term. So I think gold's a very important part of anybody's strategy to protect their money and even to try and multiply their money. Good thing. I think energy stocks are good with Barack Obama as president because anything that is limited, you can't get enough of it, is going to go up in value. And Obama keeps trying to put coal out of business and he won't issue any drilling permits for oil.
11:55 And so it becomes more valuable and the price goes up. So most of my 18 millionaires and billionaires thought you should invest in oil and energy. And here's a big one. People are moving like crazy to the states I just recommended, Nevada, Texas, Florida. There are a lot of states that are financially healthy and growing with population. And then there are states that are dying. I call them Democrat blue states. You know, they're high-tax states. Everybody's leaving. No one wants to live there. New York, California, Michigan, Maryland, Illinois, terrible states financially. They're train wrecks. So you want to buy the bonds, not of every state in America, only of the good states that are a good financial condition that people are moving to that have a great financial future. So that was another hint, suggestion that a lot of my millionaires and billionaires gave.
12:43 And then here's one from me, Wayne Root. You want to homeschool your children. You know, I grew up here last 13 years I've been in Las Vegas. My kids grew up here. They're educated here. The Vegas schools are the worst in America, but all the schools are bad in America. We just have the worst SAT scores in history in the United States of America. The dropout rate is mind-boggling all over the country. But here in Las Vegas, about 45% of the kids drop out of high school. Wow. And the ones who do graduate are, you know, are dumbed down so badly they can't even attend community college without remedial math and English. So my kids were raised here homeschooled. My daughter is a straight-A student at Harvard. So if you want your kids to have a future in this America and you want them to make big money and have a great career and a profession,
13:29 you're going to have to figure out something to do other than to allow them to go to public schools. To me, even though there's a financial show, Coach B, nothing is more important than the future financial opportunities for your children. And they're not going to have any opportunity if you let them get educated in public school. I cannot agree more with that. I mean, that is so true. I mean, people are getting brainwashed every single day. Hey, let me ask you one final point here. We've got about a minute left here on this segment. But you talked about the states that are doing so bad, and I've heard it through the grapevine now that when states like, you know, California out there, out west, right next to you or Illinois, when they get into so much trouble where they can't pay their debts, they're going to try to hit up the federal government to help them bail themselves out, which will mean us in the good states, the states we're working hard at and not getting all these giveaway programs thrown out by the state.
14:20 We're going to have to bail out big states like that, aren't we? Well, you know, you have to bail them out if the country is run by Barack Obama, you know, in the next three years. You have to bail them out if the country is doing well financially. Maybe that has to happen. But if the country is bankrupt, I don't think we're going to be bailing out the states when the federal government is so bankrupt. Right now it owes just under $17 trillion. If you add an unfunded liability, it's about $100 trillion. I don't think there's the money to bail anyone out at this point, and I don't think there's the political will to get it passed. It'll have to pass the United States Congress, and the House is run by Republicans who will never allow that to happen as long as they keep the House. So I don't think they're going to be able to pull that off on us. But I will tell you this, Pete, I know time is short. I'll keep it short. My millionaires and billionaires in the Ultimate Obama Survival Guide also recommended for that reason, investing with your stockbroker here in America,
15:13 but investing in foreign stocks and mutual funds because they feel America is really not going to do as well for the next five and ten years as other countries all over the world, especially the emerging markets. It won't grow as fast because of the tax policies and regulation policies of Barack Obama. So invest globally. Think internationally. Don't think everything is about America. It's not. There's lots of great countries to invest in. Folks, his name is Wayne Allen Root. Again, the name of the book, The Ultimate Obama Survival Guide, How to Survive, Thrive, and Prosper During Obamageddon. If you join the interview late or want to hear it in its entirety again, you can go to financialsafari.com. Wayne, I hope to have you on again in the future and talk about more of these topics and also when you have another book come out. Thank you, Coach Pete. Love to be on and talk to you anytime.
16:01 My website's rootforamerica.com, and the book is The Ultimate Obama Survival Guide. Have yourself a great day and a great weekend. God bless. You too, my friend. Folks, we'll be right back after this. We'll be right back.
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