Hello, my friends. And welcome to another episode of Passive Real Estate Investing. I'm your host Marco Santarelli. So this is part two of my interview with Richard Duncan titled The Money Revolution, the name of his new book that just came out not too long ago. Great book ,500 pages, 250 charts. Very interesting. Read the subtitle, How to Finance the Next American Century. It was actually an eyeopener of a book and an eye opener of an interview because it kind of changes the way I thought about how money printing and how the economy works in the us and the impact and effect of the federal reserve and the amount of currency that's being put into the system and what that looks like on the global stage. So today is part two of my interview with Richard Duncan. Very interesting person, great books. He's got four books out, really, really good books about the global economic crisis and the global economy.

Just really good stuff. I really highly recommend you read his stuff or at least go to his website and check out what he has to offer. We went long during the interview. And so this is part two. I had to chop it up into two and we were talking before and after I was recording as well. So we were probably talking for a total of two hours and I could have gone for another four. So I hope you enjoy it with that. Let's go right into part two and we'll wrap it up here in about 30 minutes.

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There's a lot to unpack there. And you know, in the back of my mind, I'm thinking, you know, how is this going to impact me and other investors and real estate investors down the road as inflation changes, interest rates, change debt, burdens, income tax changes, our tax benefits and tax incentives gonna be changed or taken off the table in order to pay for all this extra spending.

I'm just thinking of all these different things. My first quick question here is what you just described as not as, as increased spending. Is it sustainable? Because when you go from the numbers you were talking about, you know, 10, 15 years ago, as far as you know, what our, our national debt was to the explosive growth that we have today, that's not just explosive, it's, it's exponential. And we all know that you can't keep following that same trajectory on a chart in, in terms of debt. I mean, even federal debt, when, you know, you have the printing press of the federal reserve, and you can just print to infinity at some point that system, I would think, I don't know if I believe this, but I would think will break down, especially in an environment where you have rising rates, because the government doesn't want interest rates to rise. If they're having to pay on that debt, the interest on the debt that they're borrowing. I mean, correct me if I'm wrong here, but overall, this doesn't sound like it's sustainable over the long term.

Well, let's for the moment. Assume we go back to where we were in 2019 with low inflation, low interest rates and globalization keeping a lid on both inflation and interest rates. If we return to that environment, then it would be possible for the Fed to finance this borrowing over. And again, this is over a 10 year period and keep interest rates down by buying the, the debt that the government sells just as it kept interest rates down after 2008. And again, in 2020 and 2021. Now, in terms of the, the size of the debt, I actually think this sort of investment would bring down government debt rather than causing it to increase, because what we are talking about is government investment or government funded investment in basic research and development corporations tend to invest in applied research and development. In other words, they take existing research and development.