Ep 46: Exposing Voter Fraud Before The Election
President of Project Veritas James O'Keefe exposes corrupt voting officials in Virginia and Texas.
James O'Keefe, President of Project Veritas, exposes corrupt voting officials in Virginia and Texas. Like many of Stansberry Radio’s new listeners, James is a young 28-year-old, but he’s already exposed some of the biggest shams this country has produced. Recently, James released a video featuring the son of Rep. Jim Moran (D-VA) advising an undercover reporter how to fraudulently cast ballots. He rose to fame several years ago when he uncovered ACORN’s faulty tactics.
Aaron Brabham: Welcome to another episode of Stansberry Radio. Porter Stansberry, how are you doing?
Porter Stansberry: Doing great. I love hurricanes.
Aaron Brabham: Yeah, how did you survive it?
Porter Stansberry: I fled to the family compound up in Central PA. Got on top of the mountain – 2500 feet. If that floods, we got bigger problems.
Aaron Brabham: Yeah. Basically, forget about returning back to Baltimore because we'd all be done.
Porter Stansberry: Well, I gotta look after myself first.
Aaron Brabham: So far no looting around my neighborhood. I'm pretty happy about that.
Porter Stansberry: I can't take care of my friends, my family members and my employees if I'm under water.
Aaron Brabham: No, you can't. And what's a friend in need.
Porter Stansberry: A pest.
Aaron Brabham: That's right.
Porter Stansberry: No, we have a backup, a generator up there. And I thought for sure we'd lose power here at the house in Maryland. So we fled up there and spent the night. We didn't lose power anywhere, didn't have any damage at all. Of course, I know there's a lot of damage around, but we got lucky.
Aaron Brabham: Yeah, it wasn’t that bad in Baltimore at all.
Porter Stansberry: We got Goldsmith trapped in Manhattan. He's got no power. He's got no cell phone.
Aaron Brabham: Oh, that's right. All the towers are out.
Porter Stansberry: Yeah, and he's not no – of course, so, therefore, a/k/a no police protection.
Aaron Brabham: Ooh, bad.
Porter Stansberry: Yeah, how'd you like to be stuck in Manhattan with no electricity.
Aaron Brabham: No. That doesn't appeal to me, and neither does all of the Twitter reports I saw of people saying, "Can't wait till Sandy gets here so I can get my looting on.
Porter Stansberry: Nice.
Aaron Brabham: A lot of people were forming little parties to go out and loot.
Porter Stansberry: Ach.
Aaron Brabham: I did see a Humvee, a military police Humvee down in – with a police escort down in Baltimore and I felt a little safer for that. I was like, They're either coming to kick in the doors of the citizens or they're here to prevent looters from looting.
Porter Stansberry: Yeah, that is kinda strange the way – the Libertarian crowd, right. We don't really want government to do anything, but when the power goes out and the National Guard shows up, we're happy.
Aaron Brabham: I'm okay with that. I was like fist pumping 'cause actually I'm like, "Yeah, yeah. Go down there and get 'em."
Porter Stansberry: Who was I with? I was with Matt Smith last weekend at Sea Island. And he's a veteran; he's an Army guy. And he told me –
Aaron Brabham: I almost forget that.
Porter Stansberry: Yeah. He pointed out that the Army's good at two things. The Army is really good at two things. Breaking things and killing people. If you just leave them to that, they do great work. But he's like, the nation –
Aaron Brabham: The best in the world.
Porter Stansberry: Yeah, nation building, not so much.
Aaron Brabham: No, no. Policing, no.
Porter Stansberry: Right. But there's a bunch of trees down, the Army guys, they'll flat out kick that tree's butt.
Aaron Brabham: Oh, yeah. They'll get out there and ass kick it with their feet. Chop it up. All right, Porter, we have a good guest on today. We have James O'Keefe. James is the president of Project Veritas. He helped expose ACORN and, recently, he found voter fraud in Virginia and Texas, and he's actually had a lot of different projects.
Porter Stansberry: I'm interested to talk to this guy because there are people that make some pretty impressive allegations against him.
Aaron Brabham: Very impressive against him.
Porter Stansberry: But then there's also his work which is very impressive. So we're gonna try to get to the bottom of it. What's your initial take before we talk to him? Good guy or a scumbag.
Aaron Brabham: I think good guy. I think his intentions are good. Maybe a little too heavy on the editing to tell a story, but he's no different than Michael Moore. He just sits on the other side of it.
Porter Stansberry: Right. But Michael Moore is a scumbag, no doubt.
Aaron Brabham: He is a scumbag, yes. He's a complete scumbag.
Porter Stansberry: So do you think I care more about the method or more about the message?
Aaron Brabham: The message.
Porter Stansberry: Wrong.
Aaron Brabham: Method.
Porter Stansberry: I care way more about the method.
Aaron Brabham: You want to see if there's integrity behind this.
Porter Stansberry: Absolutely. I don't really care what your beliefs are. I care about whether or not you act with integrity.
Aaron Brabham: Oh, that's true. What was I asking? Of course. This is your mantra.
Porter Stansberry: So one of our things – remember we had a guy – we had a guest one time ask us to edit the radio show.
Aaron Brabham: That's right, refused to.
Porter Stansberry: No. We just, "Okay, we're gonna can the interview." You don't want – we don't play "gotcha." That's not our game.
Aaron Brabham: I guess what I want to know is, when they say heavy editing, look, if you had hours and hours of tape, you're gonna need to edit it down to tell the story.
Porter Stansberry: I've got no problem with that. We edit a lot of things that are in the mailbag.
Aaron Brabham: Right.
Porter Stansberry: But here's what we don't do. We don't edit one – several words from one sentence and put them into another sentence.
Aaron Brabham: Oh, no, no. I would completely disagree with that.
Porter Stansberry: Right.
Aaron Brabham: No, yeah.
Porter Stansberry: So we edit things. We get rid of 90 percent of the e mail because it's just wandering stuff about Aunt Sally, and we put the heart of the message. But there's never a time where we would edit something to make it appear that someone wrote something they didn't write.
Aaron Brabham: That's a good point. And if he's doing that, it's a complete scumbag. I don't care what side of the fence he sits on, but I want to hear it.
Porter Stansberry: I'm very curious about what he says because there were a couple of big investigations that were done on the basis of his work, and he was subpoenaed to give the full recordings and the full transcripts. And the full recording and the full transcripts, according to the government investigators, told a wildly different tale. So, for example, the ACORN people, one of the ACORN people, apparently – and I don't know if any of this is true.
I never know who to believe in these stories. But, according to what I read, the government people said, when they got the full – when they investigated the guys, they found that the ACORN guys had actually gone to the cops to report these people, so they didn't – but he went to nine or ten different ACORN offices until he found the one that had the dummies working in it. Then he got them on tape.
Aaron Brabham: Yeah, he does smell a little bit of entrapment on some of the things, but we'll find out.
Porter Stansberry: I'm okay with entrapment.
Aaron Brabham: Okay.
Porter Stansberry: I'm okay with entrapment. I just think if it's true that he has been editing these things to make them look different, then that's a different matter. 'Cause you know all great journalists do entrapment. Mike Wallace put 60 Minutes on the map with entrapment, right. Did you ever see the Mike Wallace stuff about the Interstate 75 between Macon, Georgia and Valdosta, Georgia, how he would – they would dummy up a car to make it look broken, and pull into these places and get ripped off.
Aaron Brabham: Oh, those – yeah, that. And he said they did the RVs. They did it all. Man, I love that stuff. Yeah, I'm okay with that.
Porter Stansberry: 'Cause you know what, if you're an honest person, no problem. You can't entrap an honest man.
Aaron Brabham: And, by the way, my favorite entrapment scheme shows ever, Chris Matthews with the people that go online and are going –
Porter Stansberry: Oh, "To Catch a Predator."
Aaron Brabham: "To Catch a Predator."
Porter Stansberry: Yeah, I could never watch that. It just creeps –
Aaron Brabham: Man, it's disturbing.
Porter Stansberry: [Makes sounds of being creeped.]
Aaron Brabham: Completely disturbing. These are people from every walk of life, but I love that they get public humiliation and they just lie. "Oh, so you're bringing duct tape and condoms and alcohol because you're here to protect the 14-year-old boy."
Porter Stansberry: I don't even want to talk about it.
Aaron Brabham: It's absurd.
Porter Stansberry: Really, that just makes me sick to my stomach.
Aaron Brabham: I did like that –
Porter Stansberry: I can't do it. Personally, I wonder how that show ever got ratings 'cause there's no way I could watch that. It would just make me cringe.
Aaron Brabham: I watched it. I like it. I like it because those people need to all be put behind bars. All right, we've been receiving some –
Porter Stansberry: I agree, but I just don't want to think about it. That's why I didn't become a cop. Dealing with the absolute worst –
Aaron Brabham: Dregs of society.
Porter Stansberry: – dregs of humanity, day in and out. Ach, I don't know how they do it.
Aaron Brabham: I'm not interested in that either. We continue to receive a lot of feedback, via our firstname.lastname@example.org. And some people have been hitting us up on 855 SARadio. That's 855 727 2346.
Porter Stansberry: They still hating on us?
Aaron Brabham: A little bit. Not too bad. We haven't hit a nerve recently, so we need to really find that one to dig into.
Porter Stansberry: Isn't there like a religion guy coming on in a couple weeks.
Aaron Brabham: I hope so.
Porter Stansberry: That always gets them started.
Aaron Brabham: That always gets them started.
Porter Stansberry: Bring the hate. Just keep listening.
Aaron Brabham: Before we get to the interview, let's talk quickly about the Alliance Conference we just had.
Porter Stansberry: Oh, it was spectacular. Best conference we've ever had.
Aaron Brabham: So for people who don't know what an alliance member is, you consider them a partner of the business. Not a true partner, but they help – they're in it for a lifetime. They're lifetime members.
Porter Stansberry: So these are guys who are the true sponsors of our publishing company. When you look at our overhead, you see the fact that we don't take any advertisement, you see the fact that for our intro subscription we're charging $49.00. I don't know if you guys know this or not, but can't do a lot of good business on $49.00 subscriptions. It just doesn't work.
Aaron Brabham: Especially when you're paying to get those names.
Porter Stansberry: So it costs us about $70.00, $80.00 a person to get a subscriber in marketing expenses, and we're only getting $49.00. So we're not gonna ever make any money unless people renew for years, or unless they decide to sign up for a higher-price product. So that's our business. We get you in at the low price and we try to convince you to let us help you with your options trading or your value investing or all the stuff that we offer.
Anyways, a good way to do it that's affordable if you want the stuff 'cause you can buy it on a lifetime basis. And we charge something like $12,000.00 now for a lifetime membership. And what that gets you is all of our products, now and in the future. And this is something that many publishers do, but I decided to do this many years ago, back in 2003 when we started. Back then, it only cost $2,700.00, right.
But I told you, "Hey, I'm starting out. I need your support. And I'll give you every product we've got, plus every product we develop in the future. And if you think I'm gonna go places, you think I'm gonna grow the business, join now." And so not many people did. But then they kinda – as we came along with better and better analysts and better and better products, people got the message and sign up.
So this is the conference. Part of the benefit is you get invited to a private, alliance-member-only conference, and I pick up the entire tab. So I pay for the whole conference. So I pay for all the speakers and I pay for all the conference space, and I pay for breakfast lunch and dinner. And, of course, there are no drink tickets.
Aaron Brabham: No, not at a Stansberry event.
Porter Stansberry: No way. That drives me crazy.
Aaron Brabham: And, also, there's not plastic bottles of vodka. It's Gray Goose.
Porter Stansberry: No, we have these events at the nicest places in the world. So Four Seasons, Hong Kong. Last year it was Bacara out in Santa Monica, and this year, it was Sea Island, Georgia, which I could go so far as to say is the nicest resort on the East Coast and maybe in the country. It's a really special place. So we took – I don't know – 25 staff members and speakers down there. And we hosted about 300 Alliance members down there and we had a great conference.
It was first class in every way. And the highlight for me – I don't know what you'll say – but the highlight for me was the guy from Pensum. Pensum is a private investment firm in Miami that specializes in rental apartments, and I invest my own money with these guys. They're very sharp, and they gave a very interesting presentation on earning about 20 percent annually on doing mezzanine bridge financing for apartment complexes.
And I'm not real sure – it was a pretty sophisticated talk, and I'm not sure everyone in the room really got it because they're not salesmen. They're investment experts. But it was definitely a great opportunity for everyone in the room to get into those deals.
Aaron Brabham: Well, we are going to be inviting them on for one of our premium shows where they can explain –
Porter Stansberry: Yeah, they'll be on the radio.
Aaron Brabham: – the entire program over an hour long, and then people can replay it back and learn more about it. And then, the people that have the money for that type of investment, we can send them their way. The case they proved to me was it looks to me like this – you should have at least a little bit of your portfolio over here. I know you personally do. But, man, these guys, they know their business up and down.
Porter Stansberry: I was very impressed with the –
Aaron Brabham: Very impressed.
Porter Stansberry: I was very impressed with the whole presentation. The sector background was very interesting, explaining why apartments are a better investment than single-family homes, which you wouldn't necessarily think so, but he had some very compelling data.
Aaron Brabham: And then you also have a handful of your top analysts give their best ideas for the year.
Porter Stansberry: Yeah, and those guys are great, but if you read our newsletters, you have access to those ideas. You don't necessarily have access to the Pensum guy unless you're at the meeting or, perhaps, unless you joined the Premium Radio Show – hint, hint, hint. And the nice thing about the radio show is I wasn’t really able to quiz these guys while they were giving the presentation 'cause it's a room full of almost 400 people. So there's not real time for much Q&A.
But on the radio show, I'm really looking forward to being able to hammer down and drill down on this guy on a couple of important key points. And then, of course, we had at the Alliance Conference, we had a very famous investor, David Dreman, who – for those of you who know Value Investing – he's one of the all-time legends in the business, and he gave a reasonable presentation.
But he's well into his 70s now, and I'm not gonna say he was the most dynamic speaker in the room. But it was fun to enable our people to get to meet him 'cause a lot of them have invested with him for many years, and, obviously, he had a lot of important things to say. His research on the P D ratios and the long-term trends of Value Investing was fascinating.
He has, personally, done probably more homework over the last 40 years than anyone else I know that is an institutional investor the way he is. And he's very deep into the research, himself, which is pleasing to see. And – I don't know, who would you say – out of all the Stansberry guys, who would you say was the best speaker. It wasn’t me. I did – I was a little sloppy this year, I must admit.
Aaron Brabham: A lowlight, highlight for me was, lowlight, you telling me I'm going on stage.
Porter Stansberry: Ah, yes, that one.
Aaron Brabham: And the highlight for me was me being on stage because it comes with fringe benefits I didn't realize.
Porter Stansberry: So I didn't tell Brabham I was gonna do this, but as I got up to give my keynote address, I made him come out of the audience and sit next to me on the stage. 'Cause I told him that I've done the radio show with him for so long now, I can't even talk without him sitting next to me. And it was completely designed to embarrass him, which it did. But it also drew some attention to Aaron from certain members of the audience.
Aaron Brabham: Which wasn’t a bad thing at all. So feel free to embarrass me however you want to in the future in front of big audiences. I'm okay with that.
Porter Stansberry: It's the rock star effect.
Aaron Brabham: And it's pretty powerful, man. I see what you mean.
Porter Stansberry: You're the guy from out of town up on stage. Look out.
Aaron Brabham: Yeah, it was great. As far as our analysts, Shug always does a great job, no doubt about that. And –
Porter Stansberry: That's Steve Sjuggerud who writes True Wealth.
Aaron Brabham: True Wealth.
Porter Stansberry: And Shug's thing is he is an enormously complex, top-down kinda guy. So he's looking at if A, B and C conditions exist in the world's economy, what sectors, what countries do well. And his pick, as I recall, was surprising.
Aaron Brabham: The other guy that did really well that I like, but he's just a great speaker and we had him as co host a couple weeks ago, is Jeff Clark. Jeff Clark is funny. Jeff Clark put a zinger into his presentation that was totally inappropriate, which I loved.
Porter Stansberry: I don't remember that one.
Aaron Brabham: I don't know if you were there for it –
Porter Stansberry: I might have been at a meeting.
Aaron Brabham: – which was probably better. Really, it's actually very funny. But Jeff Clark was great 'cause he's a technical guy, but this guy's always on point. He always seems to call –
Porter Stansberry: He's a great trader.
Aaron Brabham: – it the right way. He's a genius, so.
Porter Stansberry: No doubt about it.
Aaron Brabham: It was entertaining, man. I had a good time. Frank Curzio still owes me $50.00 for a bet that he waffled on.
Porter Stansberry: Oh, yeah. He welshed on the bet, didn't he?
Aaron Brabham: Yeah. And then he wanted to cut it in half. And then he said he'd be willing to part with half the bet, and he still didn't pay that. So I'm gonna go ahead and sizzle him. Feel free to light up Frank Curzio's e mail about him waffling on a bet. And if you're out there, don't ever bet Frank Curzio 'cause you won't get paid. He's true Jersey/New York guy, I guess, just a big talker.
Porter Stansberry: [Laughter]. That's gonna bring some hate mail.
Aaron Brabham: Take that, Curzio.
Porter Stansberry: So what was the bet? Just get a little detail here.
Aaron Brabham: Yeah. So we played the Sea Island course and this is three days after the McGladrey Classic. During the McGladrey Classic, the greens were rolling at an 11 on the stimp. They were probably at a 13 on the stimp when we played, and it was windy.
Porter Stansberry: And it was windy. The storm was approaching.
Aaron Brabham: So my bet was – the night before, I was over served in the bar and I was a little too confident. I said, "I'll break 80," and they – him and another buddy – jumped on the bet for $100.00 each.
Porter Stansberry: So you're gonna break 80 on a PGA-laid out course with a 13 stimp.
Aaron Brabham: And I've only played once in the past three and a-half months. Very optimistic.
Porter Stansberry: I don't remember what the slope was in this course, but it was hard.
Aaron Brabham: Hard, really hard.
Porter Stansberry: It was a combination of wind, water and elevation. Bad combination if you want to score low.
Aaron Brabham: Bad combination, so –
Porter Stansberry: Of course, keep in the mind the winner shot a 60 in the final round of the PGA event, a 60.
Aaron Brabham: It's insane. From the tips with the hardest stimp placements, no way.
Porter Stansberry: I can't imagine.
Aaron Brabham: Can't imagine that.
Porter Stansberry: I gotta go watch the film on that.
Aaron Brabham: So I took a $50.00 bet, and then in the morning, I was like, "Ooh." Sober guy was like, "This is gonna be rough. I'm gonna try to hedge my bet a little bit, a little insurance policy or something." I was like, "How about we knock that down to $25.00. That way you still win money, but you know, come on." 'Cause I forgot the night before playing with rental clubs. And I'm like, "Ooh, rental clubs, another wrench in the machine here."
Porter Stansberry: Rental clubs are good for four or five strokes around.
Aaron Brabham: Especially the driver. So I went out there and then –
Porter Stansberry: You can't play your best game without your clubs.
Aaron Brabham: So I get a text from his partner and who also had $50.00 from me riding on it. And they said, "We'll go 83 because this course –
Porter Stansberry: Idiocy.
Aaron Brabham: – is killing us.
Porter Stansberry: So, in other words, you sort of – you reneged a little bit on your drunken bet.
Aaron Brabham: I did. But I did say in fairness, "I'm happy to keep the $50.00 bet." I was just trying to get a little more lower.
Porter Stansberry: So they were stupid to let you out of it.
Aaron Brabham: That's right. So they said 83 because the course was killing them.
Porter Stansberry: 'Cause then they gave you three strokes.
Aaron Brabham: That's right. And I shot 82. I needed pars in the last two holes and I did it, no problem. And that's where we're at. All right, Porter –
Porter Stansberry: And there was another game going on. It was me and you versus Palmer and Doc Eifrig.
Aaron Brabham: That's right.
Porter Stansberry: And we killed them.
Aaron Brabham: Smoked them on the front. Had them going into the last hole – last couple holes, toddling back and forth. They ended up getting the back, but we won the front and overall.
Porter Stansberry: Yeah, we won.
Aaron Brabham: And, by the way, you got no strokes.
Porter Stansberry: Yeah, and I got no strokes.
Aaron Brabham: We did combined score, which is the first time we've ever done that.
Porter Stansberry: We definitely beat them. In fact, soundly.
Aaron Brabham: Oh no, we drummed them. They know it. All right, Porter, let's get into the segments of our show.
Porter Stansberry: By the way, part of being the owner of the firm and the namesake, that gets me a low-handicap player as my partner every time.
Aaron Brabham: And I'm glad to be that guy. I hope he doesn't ever hire anybody lower because I might be skipped on these trips, and I don't want to miss these trips.
Porter Stansberry: It's so funny. We were all standing around the golf club and everyone's wondering, "Who's gonna get to play with Aaron? Who's gonna get to play with Aaron?" And I'm like, "Why would you even wonder that?"
Aaron Brabham: Yeah, it's my car partner, man. And we have a good – you're my mental coach as well, and we do help each other out as much as we can.
Porter Stansberry: There's no helping me.
Aaron Brabham: Oh yeah. It's the tempo, man. It's all about the tempo.
Porter Stansberry: What did I shoot in the front, like a 56?
Aaron Brabham: I don't know. It was rough.
Porter Stansberry: And the back was worse.
Aaron Brabham: Yeah, it was rough. We thought we were gonna ROB, which means run out of balls. And you don't want to ROB because that's it. That's a rap. You don't even deserve to finish a round if you ROB.
Porter Stansberry: There was one hole where I lost three balls on the same hole, the Number One handicap hole. Geez.
Aaron Brabham: Yeah, I hated that one.
Porter Stansberry: Brutal.
Aaron Brabham: All right, Porter, by the way, there's a new ringtone out with you laugh.
Porter Stansberry: I know. I've heard it.
Aaron Brabham: It's very disturbing, but I'm excited about it. Now, so here's the deal. You can go into iTunes and you can search for it. The problem is if you have Android, you're not gonna be able to get Porter's ringtone. Do you have it downloaded?
Porter Stansberry: Yeah, I can play it for us.
Aaron Brabham: Oh, I'd like to hear it.
Porter Stansberry: Yeah.
Aaron Brabham: Let's get a little snippet. It's $1.20. It's not because we need the money. It's because iTunes pretty much requires you to charge something and that's what it all is. So don't – just stop it with the e mails about, "Well, this is what Porter's been – is this what he's now? He's just a ringtone guy. Are you that desperate?" No, no, no. It's none of that stuff.
Porter Stansberry: Stop it.
Aaron Brabham: Yeah, just stop it. It's funny. So the problem is – also if you're in South America, Africa, Antarctica, New Zealand, you're probably not be able to get it 'cause they're not big on iPhones down there. You got it?
Porter Stansberry: Got it. [Plays Porter's laugh ringtone.] Can you hear it? [Plays Porter's laugh ringtone.] I like the end there where I go, "Oh."
Aaron Brabham: Oh, like you gave up. Yeah, I like that too. So go get it, annoy everybody around. Turn it up really high at restaurants and be that guy 'cause I really can't stand that guy. Do it in a movie theater for us too.
Porter Stansberry: The thing that I have a hard time with is when I hear it, I don't recognize it as a phone call yet. So I'm like, "Who's laughing just like I do?" I'm looking around and it takes me – there's like a ten-second thing there where I'm like, "I wonder who's laughing?"
Aaron Brabham: What did your wife think of it?
Porter Stansberry: She's a big fan.
Aaron Brabham: She is. I like that.
Porter Stansberry: Yeah, big fan of that, yeah.
Aaron Brabham: I figured that or she's gonna be, "That's so obnoxious, Porter. I do not want to hear that. I already hear it enough."
Porter Stansberry: Well, I horselaugh at her all the time.
Aaron Brabham: That's a good point.
Porter Stansberry: So she's gotten used to it.
Aaron Brabham: It's one of your endearing qualities. I have one more thing, Porter. We showed a video at the Alliance Conference that we're gonna send out to our subscribers that are on an e mail list, and it is a business proposition for anyone that's willing to take it. It's actually a spoof on the government and how they handle their taxes and entrepreneurs. But it's a great video.
I think you guys will enjoy it. So if you're not part of our e mail list, go to http://www.stansberryradio.com. There's a little e mail box up there. And put in your name. We'll send you this, as well as we send you unique offers and things that you won't know about unless you're on our e mail list. On the hotline, we have James O'Keefe. James is the president of Project Veritas. James, welcome to Stansberry Radio.
James O'Keefe: Very good.
Porter Stansberry: So James, I got a couple of question to start with. For folks who may not have heard of you or have not seen your videos, what's a very brief synopsis about what you do for a living?
James O'Keefe: We are sort of investigative guerrilla journalists. We have video cameras and go around exposing fraud, waste, abuse, corruption, highlighting absurdities in government-funded, taxpayer-funded institutions like ACORN and National Public Radio and Medicaid fraud and voter irregularities, voter fraud, dead people voting [break in audio] for celebrities, ballots being given out to strangers, congressional aid, counseling as how to catch fraud, anything you could imagine. We go out there, we investigate it, we expose it, we put it to music. We dress in costumes, sometimes, and try to absurdities.
Porter Stansberry: James, are you saying that there's corruption –
Aaron Brabham: Oh, come on.
Porter Stansberry: – in public institutions in America?
Aaron Brabham: That's crazy, James.
James O'Keefe: Well, yeah, we've proven it.
Porter Stansberry: What? You've proven it. [Laughter]. Why not just – yeah, we're laughing because the amount of corruption that goes on in America is shocking.
James O'Keefe: Well, Barack Obama agrees there's corruption because he voted to defund ACORN citing our videos. NPR agrees there's corruption because they fired their CEO, Vivian Schiller, after our videos. Congressman Moran out of Virginia believes there's corruption because he fired his own son, Patrick Moran, last week, citing our video.
Porter Stansberry: Well, your video was pretty damning in that case.
James O'Keefe: Yeah, I think it was.
Porter Stansberry: I just watched it and it was pretty startling. And I loved the letter that he wrote to the press afterwards, saying that he was just joking.
James O'Keefe: Yeah, he said he was humoring them, yeah.
Porter Stansberry: Oh, these people are so funny when you nail them that badly. So can I make one suggestion? I'm sure your list of future fraud investigations is endless in the United States. But the one question I've got for you in terms of this is – or a suggestion I've got – we've noticed that there's a correlation between the congressional districts that have sort of the highest dropout rates, the highest crime rates, the highest incarceration rates, those places, they also tend to be dominated by one particular minority in terms of population.
And another interesting correlation is that they have the longest serving continuous members of Congress, who win their elections by the highest conceivable majorities. So you've got guys like John Conyers, whose been in power for 50 years now, whose district has literally collapsed underneath him. It had to redistrict several times because everyone left his district, where they’ve got a 50 percent dropout rate, whatever.
I don't know exactly what the incarceration rate is, but it's extremely high. And then he keeps winning these elections by 85 percent minorities, which we describe as Putinesque. How would you – if you were gonna go after a guy like John Conyers – and, apparently, someone already went after his wife 'cause she's in jail. [Laughter]. Course that didn't do anything to derail his election. He still got elected by a 80 percent-plus majority. I just wonder how would you think about that? How would you set him up?
James O'Keefe: Based on the districting or just based, generally, on who he is as a person?
Porter Stansberry: Well, I'm sure you know him and I'm sure – maybe he's as honest and lily white as Snow White. But when your wife is in the federal pen for taking bribes and you're a congressman, suggests that you might be open to alternative arrangements.
James O'Keefe: Well, I'd have to think about it. I'd have to examine it. And, frankly, I wouldn't want to give out any secrets about what I would do.
Porter Stansberry: Oh, nice.
Aaron Brabham: I like that.
Porter Stansberry: Keep it all in. 'Cause you got in a little bit of trouble the last time you went after a member of Congress, didn't you?
Aaron Brabham: I got in a little trouble after I went into a member of Senate. I went into Senator Mary Landrieu's office. That is a huge misunderstanding, what happened. I was in the office, saying I was somebody I was not, which we do it in every single investigation. It's the element of pretense. That's what undercover investigation is.
But they tried to get me on a crime for using false pretenses – which is a misdemeanor – in an office. Now, if they want to get me on false pretenses, they're gonna have to get all the politicians and lobbyists on using false pretenses because telling a fib when you're inside a government office is what our elected representatives do every single day. It's a completely unconstitutional offense to try –
Porter Stansberry: Of course. Especially for a member of the media.
James O'Keefe: Right, of course. And if I was CBS or the New York Times, they would never ever dream of prosecuting me for any journalistic endeavor. But, of course, I'm a citizen so it's all about power and lack of power. But, yes, I have gotten in trouble before. I thought it was unfair. They destroyed my evidence, they destroying my video showing what I was actually doing. And I thought that was unbelievable that no member of the media reported that fact.
Porter Stansberry: It is unbelievable. The reason, of course, is that the media is in cahoots with the crooked congressman.
James O'Keefe: They have to be because they sort of play off each other. One of them gives the other information. The other one uses that information to get scoops. And that's why the media's corrupt.
Porter Stansberry: Yeah, of course. I'm very aware of this. And, by the way, the feds have come after me for publishing legitimate public information as well. I was describing the corruption that went on between the Department of Energy and a company that was spun out of the Department of Energy in 1996 called USEC.
And everything in my report was true, and they actually successfully sued me for securities fraud, even though I'm not a broker, I'm not a banker and I've never sold security in my life. So you're not the only one, James. But when you confront power with facts and evidence, boy, they really don't like that.
James O'Keefe: Oh, that is the most. That is the kryptonite. That is the kryptonite, facts and evidence. And, unfortunately, most people, even the people who oppose government fraud, don't do that. They whine, they blog, they opinionate, they talk. You're not gonna solve any problems by whining and talking. Frankly, you're gonna –
Porter Stansberry: No, but you can sell a lot of newsletters.
James O'Keefe: You can sell a lot – you can make money, I suppose, for yourself, but it – if you want to take down government corruption, the best – I've never found any more powerful kryptonite than catching it on video.
Porter Stansberry: I agree with you completely. But I have to tell you, I gave up being a do-gooder about ten years ago when it almost killed me. And I wanted to ask you a question about that. Do you have any concerns, sincerely, for your personal safety?
James O'Keefe: This is gonna sound like I'm trying to come across as a martyr. I'm not. I don't want to lose my life and I don't – obviously, I want to live and raise a family, and I'm young enough where I want to do that. But I genuinely don't – I'm not concerned about that. I believe that I'm fighting for a cause bigger than myself, and I'm gonna take precautions. We have a little bunker here we work out of in the middle of nowhere. Kinda hard for people to find us.
Porter Stansberry: I built a bunker myself. But I got very nervous when I started getting simulated bombs sent to me in the mail. It's scary.
James O'Keefe: Well, we don't have a direct access to us. We have an intermediary who's handling, but –
Porter Stansberry: I did the same thing. I called it an intern. [Laughter]. "Hey, Pete, come on in. Open this one. Looks a little suspicious." I hope Pete was interested in serving the greater good. But yeah, no, I didn't think anyone seriously was out to get me. They were just harassing me.
James O'Keefe: But I think if you look at our – if you look at our track record.
Porter Stansberry: But I bet people are seriously out to get you because you – you're not backing down.
James O'Keefe: We're just doing journalism. I mean this is what journalists ought to do. And if they want to criminalize journalism, if they want to stop journalism, then it's gonna affect everyone, not just me. This is not just about me. If they want to criminalize investigative reporting and put journalists in jail and air all their personal dirty laundry to destroy their lives, then welcome to the new United States of America because it's affecting you more than it's going to affect me.
Porter Stansberry: Oh, I agree.
James O'Keefe: And I'm not gonna stand down, I'm not gonna shut up, I'm not gonna back off, I'm not gonna give up. I believe in what I'm doing and, frankly, they’ve exhausted all their arrows. They put me on federal probation, they destroyed my evidence, they’ve called me a white supremacist, which I don't have a drop of racial prejudice in my heart. They called me a white supremacist on live television. I've been through just about everyone could possible go through, short of being killed, in the last four years. So good luck trying to stop me now.
Porter Stansberry: I'm voting for you. What are you gonna run for?
James O'Keefe: I'm not running for office. I'm much more effective being a citizen journalist than I am a politician.
Porter Stansberry: I agree with that too. Geez, this guy is – your –
Aaron Brabham: He's focused, hyper focused. I like it. Passionate.
James O'Keefe: I'm just wondering when he's gonna find the target that's the wrong target.
Aaron Brabham: I'm a little concerned about that.
James O'Keefe: I've already been through that, twice.
Porter Stansberry: Oh, please. No fun.
James O'Keefe: I've been put into federal prison. I don't think people understand what it's like.
Porter Stansberry: Oh, God, that's awful.
James O'Keefe: I've been put in federal prison. I looked through the Plexiglas at the public defender who's told me I have no rights after destroying my evidence. I've had my e mails confiscated from the feds and given to reporters.
Porter Stansberry: Yeah, that happened to me.
James O'Keefe: I've had my colleagues turn on me and send me to the mainstream.
Porter Stansberry: Didn't they –
James O'Keefe: I've been through everything you could possibly have been through.
Porter Stansberry: Did they seize all your money and then tell you to hire a lawyer to get it back?
James O'Keefe: I've been audited a dozen times. I've had federal agents look in my checking account. They’ve gone through my checking account and said, "You're not allowed to spend money on this or that."
Porter Stansberry: Right, yeah.
James O'Keefe: I've asked question about – I've had girlfriends break up with me 'cause I can't visit them. I've been through everything you could possibly have been through and I'm still here doing investigations. Do you want to know why? Because content is king and the truth is manifestly damning.
And there's nothing like catching them on tape. And people are beginning to see it. People are beginning to switch sides. Rachael Maddow, MSNBC, SladeSalon.com, they all praised us this week for catching Patrick Moran on tape in Virginia. So I think that things are starting to turn.
Porter Stansberry: What about – and, listen, I'm asking a question. I'm not arguing with you. I'm just curious. The other said says that you edit these things too heavily to create the false impressions. Has that gone on or do you – is that just the only defense they’ve got left?
James O'Keefe: That's the only thing they can say when they're caught on tape. The only thing they can say is it's fake and doctored. But we release the full, raw, unedited tapes to go along with the edited material. And, not only that, but a Pulitzer Prize-winning reporter for the New York Times, a Pulitzer Prize winner for the New York Times went through our raw tapes and said that the most damning statements matched the transcripts and nothing is taken out of context.
Porter Stansberry: So what about the – I'm just curious then. Again, I'm a – I've found your stuff great. I'm a fan. But when they did some investigations of the ACORN people – when I say "they," I mean the feds or the State of California, whoever, they let these guys off the hook. And why is that? Why wasn’t your material enough to get some legal action taken against these crooks?
James O'Keefe: That's a good question. On Page 16 of Attorney General Jerry Brown – who was the attorney general of California when he let them off the hook – he cited an obscure legal provision in the California state statutes, which said that undercover reporters don't have criminal intent.
Now, if were just acting as the pimp in the ACORN tapes – we're not actually a criminal, we're just acting as one – there can be no criminal conspiracy because one of the parties to the conspiracy is not actually a criminal. So each state has different statutes that determine whether crimes are being committed. So it had nothing to do with the statements made by the ACORN employees, which were true and damning and absurd and immoral, but it doesn't necessarily make them criminal.
If someone tells you how to start a prostitution ring, they're not necessarily a criminal. They're just entirely dirty, unethical, immoral people. [Laughter]. In California's case, they didn't – it wasn’t found to be criminal. And an immediate aha, the whole thing's fake. Well, no, the whole thing's not fake. It's just –
Porter Stansberry: What's in your video? They were not just starting a prostitution ring. They were starting a prostitution ring with underage, illegal immigrants, right?
James O'Keefe: That's right.
Porter Stansberry: I can't remember all the different combinations of wrongness, but it was so over the top. Have you seen anything about all the – there's a police department in South Florida. And South Florida is, in my opinion, is sort of the greatest home of fraud in the country. I mean there are whole neighborhoods in South Florida where Medicare fraud is the only industry they’ve got, and they just move their little Pharmacia from block to block to block every time it's raided.
But there's a police department there, but Bal Harbour cops – and James, you gotta google this and check it out. You'll absolutely love it. It's amazing. So Bal Harbour is a very high network on the beach. And they’ve only got like 2500 full-time residents that are actually living in Bal Harbour and they’ve got – I don't know – 12 or 15 cops.
Well, these 12 or 15 cops have seized $50 million in the last 18 months, or something crazy like that. They participated in some federal seizer partnership program, and they went out to L.A. and they found some snitches. They’ve paid their snitches $600,000.00 in the last 12 months or 18 months, whatever, and they’ve seized $60 million. And, James, guess what they're doing with the money.
James O'Keefe: All right, what are they doing with the money?
Porter Stansberry: Well, they won't release any of their checking accounts or whatever to the local news, so we don't know. The only thing we know is we have a slice of it from a federal investigation. And they basically all went out and rented brand new Mercedes and Lincoln Navigators to drive around in, and they started having huge $20,000.00-plus bar tabs.
And they bought all this new super expensive police gear, so they’ve got like – there's only 12 cops, and they’ve got 27 different cars and things like this. So I just wondered, these confiscation laws that turn cops into predators, it's an interesting – oh, and by the way, they seized $50 million – no arrests.
James O'Keefe: Right, right. There's a lot of that stuff happening out in the world and I think we're getting beyond premise number one, which is agree that citizen journalism is important and investigative reporting is important before we start – 'cause I'm still – we still face a lot of challenges from people in the media and throughout the country that doubt the effectiveness of what we do, that don't understand its importance. And I think that –
Porter Stansberry: I don't think they doubt it at all, James. I think they're threatened by it. I think the whole idea that you –
James O'Keefe: That's probably true. That's probably true.
Porter Stansberry: I think the whole idea that the media is supposed to be – they're supposed to watch the watchdogs. They're supposed to police the police. And, of course, they don't because there's the whole institutional buy-in. You're not gonna get the 60 Minutes interview with Obama if you've been actively investigating his administration.
James O'Keefe: That's exactly right. It's about access, and you can't have the access if you burn your sources. So I think that's why it's so important that you have people like us, who are not in that power cabal with the establishment.
Porter Stansberry: All right. I got one more question for you, then I'm gonna let you go.
James O'Keefe: Sure.
Porter Stansberry: Any chance we can get you to take on a couple of the real icons of America, the things that people believe aren't corrupt, but must be, like – I don't know – NBA refs or the idea that there's really no more steroids in pro football? Anybody want to take a guess on that one?
James O'Keefe: That's an excellent idea. If your listeners support us, if you want us to do these things and you're listening and you – we're a non profit charity. We're tax exempt, so go ahead and –
Porter Stansberry: Send us the green.
James O'Keefe: – go ahead and make a donation so I can hire more reporters. Trust me, your donation is put to better use here than, frankly, dollar for dollar, any other donation to any other politician you've been giving your money to.
Porter Stansberry: Hey, I completely agree. I'm seconding that and I'm gonna put that on my weekly column. And there's a link on your web page where you can donate.
Aaron Brabham: Yeah, there's – it's all over Project Veritas on there where you can donate and make suggestions. It's fantastic.
Porter Stansberry: And how are you guys on your own transparency? Do you publish your tax returns and stuff like that?
James O'Keefe: Yeah, we have to. We're a C-3, so we have a 990 that we have to put out once a year, and it shows what our budget will be and everything like that. And trust me. I'm being audited every month by the feds. [Laughter]. I swear. I'm not lying. Every month, I have to fill out what they call a, quote, "monthly service report," unquote with federal agents. So it's hard for me to be any more accountable than I'm being right now.
Porter Stansberry: Well, like I said, James, I have a little of that in my background and I know how that feels. Hey, listen. We want to wish you the best. Thanks for doing what you've done for our country, and if you ever get tired of being a crazy, fearless champion, at some point I just hope that you get safely out of this business 'cause I'm afraid of what's gonna happen to you if you keep going.
James O'Keefe: Well, thank you for that. And we appreciate your thoughts and your support. If you ever have any more thoughts, go to the website, send me a tip or a donation.
Porter Stansberry: You got it. I'll do it today.
Aaron Brabham: Thanks a lot, James.
James O'Keefe: Thank you.
Aaron Brabham: Parting thoughts.
Porter Stansberry: I'm seriously afraid for his life.
Aaron Brabham: He's taken on some really bad people, man.
Porter Stansberry: I hope that he's not serious when he says that – a lot of people try to downplay this, but there's a personal safety issue. Because this is America. What could possibly go wrong?
Aaron Brabham: Yeah, nothing ever goes wrong when you confront big organizations like this.
Porter Stansberry: Yeah. Let me tell you what, if he's serious, he doesn't realize that his life's in jeopardy, he's really unfortunately naïve 'cause his life is in jeopardy.
Aaron Brabham: Oh, he's – so here's the deal. He's 28.
Porter Stansberry: Yeah, he's doesn't know this yet.
Aaron Brabham: So a couple more years, he might be rethinking his life. Especially when he said he want to raise a family, have kids, all that type stuff. Man, if you're gonna choose this rogue life, you gotta stay rogue single guy. You don't want to have anybody else that they can go after.
Porter Stansberry: Well, what I think is – what I think he should do – he's not gonna listen to me 'cause he's still in the do-gooder phase of life. But what he should do is do the same thing and expose corruption in public companies, right. Then you get short the stock, and then you publish your findings and you've become rich. And you can serve the community by – you're still gonna be exposing corruption, but you can feather your own nest at the same time. And then, of course, you can afford your own private security.
Aaron Brabham: Would you say there's a higher percentage of scumbag politicians or scumbag CEOs?
Porter Stansberry: No, I think the level of corruption in America's large institutions is endemic and I think it's related. So the big corporations are in bed with the crooked politicians and the crooked cops and it's all in the same. I mean if you look around and you figure out who was doing the backing for this seizure law that the cops are using now, which, essentially, just turns the cops into a gang. They don't have to arrest anybody. They can roust the drug dealers and take money from them, but they leave them on the street to continue to –
Aaron Brabham: So they can go back to them and get more money. It's a tariff-collection-type of thing.
Porter Stansberry: That's right. It's a toll.
Aaron Brabham: It's a toll.
Porter Stansberry: Yeah, and –
Aaron Brabham: They're pirates.
Porter Stansberry: Exactly. And you're gonna – all you're gonna do in that case is you're gonna cause an enormous increase to violence. It's just gonna be – it's just gonna really ramp up the violence in these neighborhoods. Anyway, but you go and you look who was doing all the lobbying for this kind of law and, of course, it's all the defense contractors.
It's all the people who make the weapons and the cars and the guns and the ammo that the cops use. So it has nothing to do with benefitting society. It's not about getting drugs off the street, has nothing to do with that. It's about making money for these private companies that are in the defense racquet.
Aaron Brabham: Have to agree with you, unfortunately. It's depressing. The more I do this job, the more reality slaps me in the face and I realize that there's corruption everywhere.
Porter Stansberry: By the way, the readers are gonna go crazy when I'm saying that James should get into private business and expose corruption for profit rather than for fame. But, I'm telling you, being a do-gooder is a thankless task.
Aaron Brabham: Yeah, you're way more powerful with a bunch of money –
Porter Stansberry: Way more.
Aaron Brabham: – than you are being a do-gooder.
Porter Stansberry: Do-gooding and begging for donations is –
Aaron Brabham: It's rough stuff, man. Oh, when it gets dirty, you don't want to beg for donations anymore. Hopefully, he'll change the game. We'll see. All right, we're gonna take a quick break to hear from one of our sponsors.
All right, Porter. You just can't make this stuff up. Al Gore and New York Governor Cuomo and John McCain's daughter all have something in common. What do you think that is?
Porter Stansberry: They went to Harvard.
Aaron Brabham: No. They believe that Hurricane Sandy is due to global warming. Gore came out and said, "We must heed this warning and act quickly to solve the climate crisis. Dirty energy makes dirty water. Scientists tell us that if we do not reduce our emissions, these problems will only grow."
Porter Stansberry: Huh.
Aaron Brabham: Sandy is a result of global warming. That's what Cuomo, Gore and McCain's daughter have in common.
Porter Stansberry: Just stop. I don't even want to respond to this kinda nonsense.
Aaron Brabham: All right, Porter –
Porter Stansberry: What do these people think? So here's something interesting about Sandy. Sandy was the lowest barometric pressure storm to come ashore in the mid-Atlantic or New England areas since some storm in 1938, one of the strongest storms ever to hit the mid-Atlantic or East Coast. Now the wind speed – not the highest –
Aaron Brabham: No.
Porter Stansberry: – but the barometric pressure, which is, I think the best indicator of the storm –
Aaron Brabham: It's usually how they measure the strength of a hurricane.
Porter Stansberry: Right. Because it'll tell you much more about the storm's surge and the total volume of the rain. So, anyway, this measure of storm strength, it's the strongest since X, Y, Z, 1938 – I don't even remember the name of the storm. It doesn't matter. The point is, was the storm in 1938 caused by global warming. How about the hurricane of '35 that really smashed up the Florida Keys and destroyed the railroad?
Aaron Brabham: And how about the early 200s – or sorry, the early 1900s that went to Galveston and killed 50,000 people?
Porter Stansberry: Yeah, we'll go on and on and on.
Aaron Brabham: Just stop.
Porter Stansberry: But if you try to deal with these people rationally, you get nowhere 'cause what they're arguing isn't rational at all. There isn't – there is something about this that is a combination of socialism. They want more power for the centralized government to distribute things the way they think they ought to be distributed, so they need to control the energy, which is at the root of the entire economic process, right.
You can't have any ___ growth in electrical production, which is natural gas, oil, nuclear, all the stuff they don't like, right. So that's a way for them to grab control of the economy. But then the second thing about these folks, the "global warming is destroying us" folks that doesn't make any sense, is there is a technocracy about them.
And this is the belief that some people are smarter, and that these smarter people know more about technology and that they should be empowered to make decisions for the whole economy and for you and yours. And what's so funny to me about this is these people claim to be the scientists and they claim to be the leaders, technocrady or whatever they call themselves, right, these folks.
Meanwhile, if you get into the research that they say proves that global warming is a problem, none of it is based on fact, none of it. None of it. It's all based on models, computer models and simulations that they are saying are real. But they're not real at all. And you dig further and you find out that they fudged half the data. And then you start thinking about it. How could you know what the average temperature of earth is? Think about how difficult that would actually be to measure accurately. Give me a break.
Aaron Brabham: It's ridiculous.
Porter Stansberry: So then they're saying that the fact that weather changes a lot is a sign that they're right. It's just complete nonsense.
Aaron Brabham: I would argue that they manipulate the numbers as much as Michael Moore and as much, potentially, as James O'Keefe.
Porter Stansberry: Absolutely. And then, of course, Gore, who's just shamelessly cashing in on all this.
Aaron Brabham: Shamelessly. That's all he's doing.
Porter Stansberry: It's ridiculous.
Aaron Brabham: This is his bankroll.
Porter Stansberry: Oh, just stop. I can't take it anymore. I really can't. By the way, sea ice is at an all new record thickness or something, right, so were – the big problem is that the polar icecaps are going to melt.
Aaron Brabham: Yeah. 'Cause, like you said, "Put ice cubes in your water. Watch out, it's gonna overflow your glass."
Porter Stansberry: [Laughter]. It's ridiculous.
Aaron Brabham: It's ridiculous. Just stop it people.
Porter Stansberry: Stop. Hey, and by the way, you want to talk about weather patterns. We have historical evidence that shows that weather changes dramatically. There were times when books were being written when the river Thames in London was frozen over, right. And it's not normally like that. And we have data from early seafaring expeditions to the North Pole, where sometimes the Northwestern Passage above Canada was open and sometimes it was closed. None of this stuff –
Aaron Brabham: I'll start believing all these kooks the day that my weather guy on the local news gets it right for three days in a row.
Porter Stansberry: Ridiculous.
Aaron Brabham: It's never gonna happen. If you can't predict today's weather, forget what you think you know about weather at all.
Porter Stansberry: Can I say one more thing about this?
Aaron Brabham: Yes.
Porter Stansberry: I know we were short on time. But the other thing that I think people just don't understand, is they do not understand that what leads to abundance is capital and knowledge. And, as long as human beings have peace and freedom, capital and knowledge grows. So our ability to harvest useful energy is sure to increase as long as we have peace and freedom, period. So if you look at any time span of human beings, we always increase our knowledge and our capital over time as long as we have peace and freedom.
And what bothers me about all these folks is there is an ingrained idea that the future is likely to be less abundant than the past, whether it's the peak-oil guys or whether it's the-world-is-overheating guys, and it's just wrong. It's completely at odds with the normal trajectory of human progress. And it's a dark and nasty idea because if you take – if you give them the power that they need to implement their plans, whether it's the peak-oil guys or the greenhouse-gas guys, we will not have freedom nor peace. And, therefore, their doomsday predictions will come to pass.
Whereas if you just ignore them and laugh at then, which is what you should do about Gore, especially 'cause he looks like a drunken Frankenstein, then you can just continue having peace and progress, and everything will end up being okay. And if we have peace, which we will for the next 50 years unless idiots like these guys get into power, you know what, we are gonna figure out better ways of harvesting useful energy.
And when that time comes, guess how you'll know it? You'll know it because, at that time, then whatever the windmill technology is or whatever will actually be economic. That's how you can decide where your useful power should come from. Economics.
Aaron Brabham: Not the EPA.
Porter Stansberry: Not politics.
Aaron Brabham: Ugh, just stop it. All right, Porter, a couple of more "You just can't make this stuff up," then we'll go to the mail bag and then we will call it a wrap for the show. So, the Obama phone program, the whole Obama Phone, I started to do a little research 'cause I want to know the origins and what the deal is with that. So, basically, it's a program called Life Line. It was started in the mid-'80s to reduce the cost of phone service to rural needy customers. I'm talking landline phone service, right.
The costs are funded by a tax on every cell phone bill, called the universal service charge. I've seen this on my cell phone bill. I had no idea what it was for, but it can get pretty costly. Well, the rapid growth of the program has continued since the '80s. So in 2011, the FCC estimated the cost of the program would be – how much do you think the program was for free cell phones in 2011?
Porter Stansberry: I don't know. $50 million.
Aaron Brabham: How about $2.1 billion?
Porter Stansberry: Oh, my God.
Aaron Brabham: And they're expecting it to increase to $3.3 billion by 2014. And the FCC also found that part of the problem with the program was – shocker – rampant fraud. A survey conducted by the FCC across 17 states and territories found that, on average, 9 percent of phone recipients were ineligible.
In some states like Alabama, New Hampshire and West Virginia, the ineligibility rate was as high as 18 and 19 percent. But that's also because 27 percent of the people that have this phone refused to answer the questions. I would say this is easily a 25 percent-plus fraud scheme that they have working. But come on, $3.3 billion in 2014.
Porter Stansberry: Obama gonna get a phone.
Aaron Brabham: Hey, 250 minutes free and you get a free phone.
Porter Stansberry: What did the lady say? "Obama gonna pay our mortgage. Obama gonna give me a phone." Pretty soon Obama's gonna be handing out Volts.
Aaron Brabham: He probably will. Well, don't worry. He already has jobs up for people that don't make the batteries for them. They sit around and play cards, like we talked about last week.
Porter Stansberry: That's right. Well, you know he's gonna win a third term.
Aaron Brabham: Yeah, he – it's gonna be close. It's gonna come down to the wire, but I believe he is gonna win his second and then his third.
Porter Stansberry: I'm not making a prediction about his second. I'm saying if he wins the second –
Aaron Brabham: If he wins.
Porter Stansberry: – he will not walk away from power.
Aaron Brabham: There's no way.
Porter Stansberry: No way.
Aaron Brabham: It's been proven before in the early 1900s and 1930s.
Porter Stansberry: Yeah. You guys have to see our report. You'll probably get a copy of it sent to you.
Aaron Brabham: I'll send it out this week, as a matter of fact.
Porter Stansberry: Yeah, I got a third-term hypothesis for old Obama.
Aaron Brabham: So for the – I was thinking about the free phones and I was like, "Well, what else do they get for free?" So I did a little google research and –
Porter Stansberry: Oh, no.
Aaron Brabham: – cities, major cities like San Diego and Tampa are piloting programs for low-income people to receive free computers and free Internet service. So in Tampa, they had a – Tampa Housing Authority installed 3500 computers with free Internet access and free training programs for the people that live in these Section 8 houses or whatever. And guess what's happening? It's failing miserably.
Very few people go to the classes to get trained. The ones that do don't care, and it's costing about $7,500.00 per person that they're funding. And they're starting to realize maybe this is a bad idea, but here's the thing. Good luck sending someone to go rip the computers out of the homes. That's not gonna happen. There's no chance of that.
Porter Stansberry: I would just wonder what percentage of those computers have already been sold to a pawn shop.
Aaron Brabham: Probably a lot.
Porter Stansberry: What we need is we need a young intern, who we can fly down to these places and say, "Go to the pawn shops and find out how much it costs to get one of these government computers."
Aaron Brabham: That's a good idea 'cause I bet you they're sitting up on the shelves.
Porter Stansberry: Yup. We could go down there and we could buy ten of them. I'm sure they only cost $200.00 apiece, right. We could pack them up and ship them back to whatever local official is in charge of this thing, and then be there with cameras when he's opening the boxes.
Aaron Brabham: Our own Project Veritas.
Porter Stansberry: Yeah. Well, I don't want to be a do-gooder.
Aaron Brabham: We would do it and, somehow, figure out a way to sell the report.
Porter Stansberry: [Laughter]. Ah, I got nothing to – no, I don't want – never mind. That stuff –
Aaron Brabham: Yeah, that's –
Porter Stansberry: – we could sell the service.
Aaron Brabham: it sounds way too much work.
Porter Stansberry: But that would be a good story.
Aaron Brabham: That would be a good story.
Porter Stansberry: Well, put it in our documentary room.
Aaron Brabham: Oh, by the way, it also triggered my mind – so if you actually contacted a pawn shop and you said, "Here's what I'm looking for," I guarantee you'd get a flood of them because their customers visit those pawn shops a lot –
Porter Stansberry: Of course.
Aaron Brabham: – for temporary loans. It reminds me of when I was in junior high and my stepdad would always win – he was in new home sales, so they would give him a company car 'cause he was the top dog. And I remember he – it was always a Cadillac, and the Cadillac rims would always get ripped off. He went to – we lived in Houston – he went to a place that had rims and they're like, "Give us two hours. We'll be back with your rims."
What do you think they did? They went and found one off somebody else's Cadillac. A 70 year-old radio journalist is in stable condition after masked men barged into his studio and set fire to it while on air. The radio host knows who was behind it. He said, quote, "There are political interests that want to silence the radio station. We will name names at the appropriate time."
I hope this doesn't happen to us. We have masked men burning local radio stations. Well, the good news is actually it's in Bolivia. But I believe if I told that story in the United States, people would believe it. It could happen easily.
Porter Stansberry: Oh, yeah. Well, our studio is in the middle of a fortress.
Aaron Brabham: Thank goodness.
Porter Stansberry: So they're not gonna get to us here.
Aaron Brabham: Yeah, in the bunker. For Stupid Business Models, it appears for profit colleges are starting to struggle, finally. Students appear to be going back to traditional schools, not like that's any better. Last week, Apollo said it would close nearly half of the brick and mortar locations to save on overhead.
Porter Stansberry: Holy cow, half of them.
Aaron Brabham: Half's a big chunk, dude.
Porter Stansberry: Wow.
Aaron Brabham: There's still halfway too many out there though.
Porter Stansberry: Well, you know what happened. As soon as you turned off the credit spigot, they probably made those federal loans slightly higher to get. And then, of course, there's no one going – here's a little tip for you, Aaron. I'm not sure if this will make sense to you, but maybe the readers will – or the listeners will – agree with me.
If you have a hard time keeping a job, not a lotta chance you're gonna be successful in college. Now, I'm sure there are some outliers out there, there's some exceptions. But if you can't deliver pizzas reliably, no change you're gonna repay a $70,000.00 student loan. No chance.
Aaron Brabham: Also, on that note if you are struggling to get into a community college or a state school, you shouldn't be going to a for-profit college. That's not gonna help you at all. Try to get into the real accredited institutions first.
Porter Stansberry: Well, you guys know how I feel about college. I've already said my piece about that. The simple fact is if you don't have an 1150 on the SAT or better you won't – if you don't – if you have an 1150, you only have a 50/50 chance of graduating within six years. An SAT score is the best predictor of success at college.
So that's only 25 percent of the folks who take the SAT. So of college-bound folks in high school, only about 25 percent of them are gonna graduate within six years, but they're all gonna end up with a load of debt. So here's my new litmus test for you, Aaron. See how this strikes you. If you can get a scholarship to a college, go.
Aaron Brabham: Absolutely.
Porter Stansberry: If you can't get a scholarship, don't. 'Cause it's just gonna be a waste of your time and money.
Aaron Brabham: All right. You heard it here on Stansberry Radio. Send Porter hate at email@example.com. Actually on that note, before we get to the voice mails, we did have Steve. Steve wrote in. He said, "I've been following your opinions about education and the two rules for all 20-somethings, and I completely agree. I was right there on the fence in high school with an SAT score of 1190.
I went to the University of Connecticut, did very poorly, nearly failed out twice, then somehow pulled off graduating with two degrees: geology and environmental science. I had about $15,000.00 in debt. Two days after graduating, I began working as a mud logger. I worked 84 plus hours a week for nearly a year.
It was terribly difficult and dirty work. The boss was a complete A-hole and did not hesitate to curse people out in front of the rest of the team. But the money was good and I had no living expenses while employed. So I stuck around and I moved up to the top very quickly. I paid off my entire college debt before I had to pay a penny of interest. I'm proud and saddened to say that I don't know anyone else my age that has done the same."
Porter Stansberry: Very typical. I think there's a lot of people that do the same. But I think that's a message that we – I think we're doing a public service, and I'm not really interested in public service. But I think if more people – if more parents understood that college is only going to benefit a very small percentage of the people who are currently going.
Yeah, think of it this way. If your college transcript is gonna help you get into grad school, then go to college. If your college transcript is gonna help you get a job or help you get further additional training, then go to college. For example, you want to be a CPA, go to college because you're gonna learn accounting and that's gonna allow you to pass the CPA exam, which is very rigorous. I got no problem with that.
If you are planning to enter a profession or you're planning to go further with education, to become a professor or something like that, then college, of course, is the only way to go. If you're not, if you're gonna go into sales and marketing, which a lot of people will, right, don't bother with college. Go get a job selling shoes. Learn how to sell. That's gonna be way more valuable to you than learning English literature from the 1400s.
Aaron Brabham: Yeah, I've only worked at two jobs where they required a college degree. And, of course, I had one, but my college degree had nothing to do with the jobs at all 'cause I was a sales guy. Had nothing to do with it. It was ridiculous that they would even require having a degree.
Porter Stansberry: You could've gotten that job without the degree.
Aaron Brabham: I guarantee it.
Porter Stansberry: If you had any experience –
Aaron Brabham: Well, if they look at my sales résumé and they look at the referrals I had, absolutely they would’ve done that.
Porter Stansberry: Of course.
Aaron Brabham: All right. I think we got a few voice mails. Tim.
Voice mail 1: I don't like Facebook. I wouldn't buy it. But I would be curious to see what your analysis is of the value of that company. I think it's going to be a depreciating asset. I think that iPhone, Android, even the carriers, are gonna squeeze them for any revenue they make off fat-finger ad clicking. The last thing is, Porter, I would to be able to see if I can harness that laugh for myself. I was wondering what the ingredients are. Is it smoking, asthma? What is the oxygen volume? I'm curious to find out how he arrived at that laugh.
Porter Stansberry: [Laughter]. Well, the laugh is just a function of years of cynicism and anger.
Aaron Brabham: Yes.
Porter Stansberry: There's no tobacco or –
Aaron Brabham: Cigars occasionally.
Porter Stansberry: Nah.
Aaron Brabham: Red wine?
Porter Stansberry: No.
Aaron Brabham: It does nothing to it. Vocal cords are good.
Porter Stansberry: No, it's just a – it's a horselaugh. I don't know how to explain it. In regards to Facebook, I do not have any official position on it. We don't have the stock or any the coverage, so this is just off the top of my head. What occurs to me about Facebook is that washout phase for social media is not here yet. My concern is if someone else will build a cooler, more user-friendly Facebook, and that's basically what happened with Instagram.
And you saw what Facebook did. They had to spend $1 billion to buy it. I, personally, think that Facebook is a long way from being a truly reliable brand. Now, you feel free to disagree with me, but I don't think that these online businesses are very stable, and I don't think you can really invest in them yet as a passive outsider. And then that doesn't even mention that the valuations are still insane in my mind.
So I don't have a position of the stock yet, but I'm not really looking to have any knowledge about it because I don't yet have an understanding of how the business is supposed to work going forward. And it's a bad combination when your business requires lots of capital and lots of people. It's a really tough thing to make work. Better investments are folks who only need capital or that don't require capital, but need people.
When you need both – well, think airlines – you need people, you need capital and there is no barrier to competition, those are, typically, very, very tough businesses to get right. Facebook requires a heck of a lot of people. Lots of expensive people: programmers and designers and folks like that, and requires an enormous amount of capital because what you don't see is below the surface.
All the different web servers and all the different – there's lots of capital in that business. And then, where's the barrier to entry. It's just a website at the end of the day. Yeah, I understand they’ve got – you can download their software on your phone and yada, yada, yada. But it's just a web business. It's just a website.
Aaron Brabham: We have a ringtone, which is a laugh. So it's not that complex anymore. Anybody can get in this business if they want to.
Porter Stansberry: I just worry that it requires a lot of smart people, it requires a lot of capital and there's no barrier to entry. And, historically, those are very tough businesses to make work. Not saying it can't be done. Let's be clear. So you say the barrier to entry is the brand and you say the barrier to entry is the network. Well, those are some barriers to entry, I agree.
You got all your pictures and all your stuff on Facebook. But it's not very hard to delete your account, and someone will figure out a way to morph all your info and over for you, to steal your account to their new whatever it is. So I'm still very cautious on it as a passive investment. And then, one last thing. Good general rule for outside passive investors, good general rule.
Number one, make sure that the company you're about to invest in spends at least as much money on dividends and share buyback as they do on capital investment. And then, second of all, don't even consider buying a stock if it doesn't pay a cash dividend. Now, these are just guidelines. I'm not saying you can't sometimes break the rules.
But I think Facebook is a very, very long way away from treating its investors well, and I would be surprised if it ever paid a cash dividend. So why are you an investor? What's in it for you? Well, you hope that someone else will buy it at a higher price. I get that. I just don't think that's the right investment for most people to actually invest in.
Aaron Brabham: Buy and hope is not a good strategy.
Porter Stansberry: Not for me. Next.
Voice mail 2: As far as Skousen, you can say what you want. I've made a lot of money on his recommendations, –
Porter Stansberry: He's still a twerp.
Voice mail 2: – but I'm not signing his pledge. I think it's silly. It's a Ponzi scheme, like you say –
Porter Stansberry: Oh, it's just like Skousen.
Voice mail 2: and I plan to get all I can back out of it before the Obamacare death panels get to me.
Porter Stansberry: Right. So what I like is I don't like Skousen's pledge to donate your Social Security to charity because I still think it makes you party to a crime. Social Security is a Ponzi scheme, and participating in a Ponzi scheme with knowledge of its fraud makes you a criminal. You can argue about it all you want, but that's the fact, okay.
So what you're saying is that Skousen's a twerp and his pledge is silly. Meanwhile, you're saying, "Give me all the money I can get out of a Ponzi scheme." Well, that just makes you a criminal, so I don't think either one of you are in the right.
Aaron Brabham: Next.
Voice mail 3: I just subscribed to a couple of your newsletters. The trailing stop philosophy, 25 percent, 30 percent. It says that you'd have a price of close. How do you track that? You don't believe in putting in the trailing stop into the systems that automatically does it for you. So if you're just doing it on close, do you have something update you and send you a reminder when a certain price has been hit? You just check them at the close of every market day. Once you identify that it's a trailing stop and hit, do you then sell it the next day, even if the stock goes up because you're selling it on close?
Porter Stansberry: Yeah. So one of the things that interesting to me about trailing stops is we've been explaining them and writing about them for 15 years, and there's nothing hard at all about understanding it. I understand the guy has questions. Okay, I get that. But what I think what the hardest part is for people is emotional, that there is a – there's a reluctance for you to understand the simple mechanics of how to operate it because what you're really doing is you're really fearing having to sell.
So you're making it seem more complicated than it is because, emotionally, you just can't get over the idea you're gonna have to take a loss. If you're going to buy stocks routinely, right; you're gonna try to have an active portfolio. You're not gonna buy an index fund. You're not gonna just put your money into something like Coke and Hershey and forget it. You're gonna try to make multiple investments every year. You're gonna try to have capital gains.
If that's your plan – and I'm not saying that's a bad plan. It's a good plan, if you like to do it. But you're gonna have to learn how to take a loss; otherwise, you're gonna get crushed. Because it only takes one stock to destroy, not only all your gains, but your principle. So if you're trading five or six stocks and you have one that goes down 75 percent, you're done. You're cooked. Your gains are done for the year.
It'll take you another 18, 24 months just to get back to even, okay. And, of course, as you and I both know, investors that trade actively, that don't cut their losses, they never get back to even. They never, ever, ever get back to even. They just lose, lose, lose, lose, lose. And then three or four or ten years later, they quit with some or no money left, okay. If you want to be in the game, you gotta have capital, first rule.
First rule, okay, first rule. Remember opportunity is infinite, capital is finite, okay. You have to preserve your capital or you have n chance. So good rule of thumb to preserve your capital is don't put more than 5 percent of your capital into any single position. That way, no matter what happens, your capital is largely protected, okay. You're gonna keep 95 percent of it no matter what happens, okay.
Second thing, use a 25 percent trailing stop loss. Why a 25 percent trailing stop loss? Well, because if the market says you're wrong by more than 25 percent, then something is going on. Maybe it's a bear market you don't know is coming. Maybe it's bad earnings that you don't know is coming. Maybe the CEO is sleeping with his secretary and there's no way you could've known it. But the market will know and the stock will move, okay.
So if you're wrong, accept that you're wrong, close the position and move on. Now, if I have stopped out of a stock, no matter how much I like the story, I don't ever go back into it until at least six months has gone by, six months. Why six months? Well just like Tory _______ said, "It's a number out of a bag."
I mean it doesn't mean anything. It's just good practice. It allows whatever is going on in the stock to become more clear to you, allows you to take a deep breath, allows you to re evaluate whether or not that's the right position to be in, okay. Second of all, what does 25 percent down mean? Well, it's pretty simple, right. You buy a stock. If the stock goes up, then your selling point goes up with it. So 25 percent trailing –
Aaron Brabham: Trailing.
Porter Stansberry: – stop loss. It follows it up. Well, gosh, that's hard math to do. Really. It's really tough? So if the stock goes from $5.00 to $10.00, okay, you're gonna sell it at $7.50. Is that that hard?
Aaron Brabham: No.
Porter Stansberry: No. Well, but I bought it at $5.00. Why wouldn't I sell it at $4.50 or whatever 75 percent of $5.00 is.
Aaron Brabham: Let your winners run.
Porter Stansberry: Let your winners run. You're gonna move your trailing stop up. Well, why would I sell it there? Why wouldn't I hang on to it? Well, because you want to keep some of your gains –
Aaron Brabham: Because you want to keep it.
Porter Stansberry: – and because the thing fell 25 percent, which says something's wrong, okay. Well, what if it turns around and goes up the very next day? It might. Guess what? Trailing stops are not designed to optimize your return in any single investment. They're designed to make sure –
Aaron Brabham: It's risk.
Porter Stansberry: – that your portfolio doesn't get destroyed. So it'll happen. In fact, it'll happen more often than not. More often than not, the stock that you sell on a trailing stop loss basis will go back up and meet a new high. That'll happen. That's life. But guess what? It only has to not do that one time for you to get wiped out. So just follow your stocks.
Now, this guy was asking lots of technical questions about how, when, why, wherefore, okay. None of them make a frickin' difference. Just make sure you follow your stocks. If the stock closes, has a closing price below your stop, you sell it the next day. It doesn't matter what else happens.
If you're having trouble understanding this, if you're really thinking this is too confusing and you just don't get it, if you don't get the principle at stake, if you don't get the money management, if you don't get that stocks have different prices and you have to move your stops and you can't handle it, don't be an investor.
Or at least don't be a trader. Don't do it, okay. And, by the way, stop it with the whole we didn't explain it well enough. Just stop. You can read this on our website any time you want. I think it's even on the free section. It's not complicated at all.
And there's no one with even a sixth-grade education that can't understand the mechanics of this thing. If your stock goes down by 25 percent, you sell. It's that simple. Now, does it really matter whether you sell one day or the next? No, of course not. Just get out, all right.
Aaron Brabham: You nailed it. It's all emotional.
Porter Stansberry: And they get all – people get all tense and tizzy about it. "Oh, I'm gonna do it all wrong." No, you just don't want to take a loss. And, by the way, when the stop loss comes and it's your time to sell, you'll think of every single possible reason not to do it.
Aaron Brabham: You'll start looking at all the news. You'll start looking at the volume.
Porter Stansberry: Oh, right.
Aaron Brabham: You'll look at the charts. You'll watch CNBC to see where it's going. Stop it.
Porter Stansberry: So we've got, literally, years and years and years and years of experience teaching people this technique. We have probably taught more people about trailing stop losses than anybody else. 'Cause, really, Steve Sjuggerud brought the idea to the newsletter business, okay. We have heard more excuses; we have seen more people dilly and dally, okay.
And all of them eventually get wiped out, all of them. And then, once they’ve paid enough in tuition, once they’ve spent enough in blood and tears and grief, then they start using them, and then we get the letter. It usually takes five or six years. And then the letter says, "I did everything wrong. I came up with every excuse. I pretended I couldn't understand it. I didn't read it." You know, blah, blah, blah, blahbitty, blahbitty, blahbitty.
Just stop. And then, as soon as they start using it and they find it works, it's like the clouds part, the waters separate and they get it. And then, from there forward, they're fine and they never go back. You don't find a guy who starts using trailing stops and says, "Oh, yeah. This isn't working for me." That doesn't happen. What does happen is, well, lots of people pretend that they can't understand it. It's just too complex. And they keep taking huge losses, and sooner or later, they get real –
Aaron Brabham: And it's just a number. Like you said, the Investor Business Daily guy, he built his whole business on an 8 percent trailing stock. For him, that's the right number.
Porter Stansberry: Right. He's just doing a lot of big trading. And, by the way, if you want to use a larger position size, then you can use a tighter stock, right. The idea is that you limit your potential losses to a fraction of your portfolio. So if you're using a 4 percent position and a 25 percent stop, the most you can lose – no matter what – is 1 percent of your account.
Even if the stock goes straight down the moment you buy it and never goes up, that's fine, all right. No, that's gonna hurt you. I say a 5 percent position – you're only gonna lose a percent and a fraction – because I think that it's very difficult for the average guy to main more than a 20 percent position and still know what he's doing. And if you look at our model portfolios in the SNA Alliance, SNA 16 –
Aaron Brabham: Sixteen.
Porter Stansberry: – for the Alliance members, those have 16 positions, okay. Because we know that not all of your assets are gonna be in stocks; some of them are gonna be in bonds, et cetera, okay, so 16 positions is plenty. And, again, I'm gonna tell you this. You're not gonna listen, but I'm gonna tell you anyways.
If you can't easily explain your rational for the investment, the way the company business works and what's in it for you in terms of dividend and buy back, if you can't tell me that for all of your positions, easily, off the top of your head, you have way too many investments. So is the average guy gonna really know more than 16 positions? No way.
Aaron Brabham: No chance.
Porter Stansberry: So it's a combination of using a trailing stop loss, using position sizing and, of course, understanding why you're in an investment.
Aaron Brabham: Well, that's our show for today. A special thanks to James O'Keefe for joining us on the show. The guest on the next show will be Thomas E. Woods. Thomas is a senior fellow in history at the Mises Institute and creator of the new documentary, "The Bubble." He is a leader within a Libertarian movement, as we'd completely understand, being at the Mises Institute.
Porter Stansberry: But didn't he write something about God too?
Aaron Brabham: Yeah. That's the show where we might start getting some hate mail, yeah.
Porter Stansberry: Oh, this is gonna really infuriate people.
Aaron Brabham: Our editor in chief found a little something about Roman Catholic Church, blah, blah, blah, or something like that.
Porter Stansberry: Right. He became a Catholic.
Aaron Brabham: Something – yeah, something like that. We're gonna have to dig deeper into that.
Porter Stansberry: That's what I love about these guys. Once these guys are in the Libertarian world, they're totally Libertarian, except for.
Aaron Brabham: Except for.
Porter Stansberry: Right. So they're like, "I'm completely against the state –
Aaron Brabham: But …
Porter Stansberry: Except, but, right. "But we gotta have drug laws."
Aaron Brabham: Right.
Porter Stansberry: I don't want the government in my pocketbook, except …
Aaron Brabham: Except …
Porter Stansberry: Right. So it's just funny to me. And I'm just big about this integrity issue, right. I find James O'Keefe passed with flying colors by the way. The guy, clearly, has a lot of integrity.
Aaron Brabham: He's very adamant about it too.
Porter Stansberry: Yeah. He's a do-gooder and that's what he's doing. And he's gonna treat everybody the same and gonna do work. That' fine. I got no problem with that. So we have to see this new guy because he's gonna be a Libertarian, but …
Aaron Brabham: That's right, most certainly. And I'm sure –
Porter Stansberry: Libertarian.
Aaron Brabham: – we should trap him into that. "So you're a Libertarian," –
Porter Stansberry: Libertarian.
Aaron Brabham: – and then angle on the religion thing. But …
Porter Stansberry: Libertarian, but we need the child pornography laws or we need abortion laws or we need to tell people what to do about X, Y or Z.
Aaron Brabham: Well, we'll find out. Visit us online –
Porter Stansberry: Wait. You know what's gonna happen. The listeners are gonna go, "Oh, Porter's in favor of child pornography."
Aaron Brabham: I know. I was waiting for somebody to send the NAMBLER thing in. Oh, no, no.
Porter Stansberry: No. Porter's not in favor of child pornography, and we definitely need laws against it.
Aaron Brabham: Yes.
Porter Stansberry: But do we need laws that restrict people from using the Internet, perhaps? Do we need to give the government the right to examine every single person's e mail?
Aaron Brabham: Well, that's what they do. One law becomes a million laws.
Porter Stansberry: Right, but they'll say, "Oh, yeah, we have to read everyone's e mail to make sure there's no trafficking in child pornography."
Aaron Brabham: Right.
Porter Stansberry: No, you don't need to do that.
Aaron Brabham: No, you don't need to do that at all. All right, guys. Hit us up at http://firstname.lastname@example.org, (855) 727-2346. Visit our YouTube channels and like us on Facebook.
Porter Stansberry: And before we go, we gotta talk about this weekend.
Aaron Brabham: Oh, yes. The First Inaugural –
Porter Stansberry: The first inaugural –
Aaron Brabham: Stansberry –
Porter Stansberry: Sailfish Open.
Aaron Brabham: Sailfish Tournament – Open.
Porter Stansberry: Yes. Out of Miami, big Sailfish Tournament. And will have to have Aaron and I on different boats.
Aaron Brabham: Well, that's only because you know if I'm on the boat with you, we'll probably lose. You're gonna put me as the curse for the other people. That's a smart move on your part. I like the way you spun that. But, yes, that's gonna happen.
Porter Stansberry: So if you happen to be in Miami this weekend, stop by at Miami Beach Marina about 5:00 PM, watch the boats come in and we'll see who wins.
Aaron Brabham: I'm excited.
Porter Stansberry: Have a great weekend everybody.
Aaron Brabham: See you guys next week.
[End of Audio]
This Episode's Guest
James O'Keefe is the president of Project Veritas, a non-profit organization dedicated to training citizen journalists nationwide. James’ investigations expose corruption and malfeasance in major taxpayer-funded institutions, including ACORN, Planned Parenthood, NJEA, NPR and Medicaid.
James is most well-known for his 2009 ACORN investigation, which exposed systematic corruption in multiple offices, such as the facilitation of child prostitution, human trafficking and tax evasion. The U.S. House and Senate promptly voted to defund ACORN and the U.S. Census cut ties with the group. The organization was ultimately forced to disband.
Other well known investigations include NPR. The sting involved NPR executive Ron Schiller and senior director Betsy Liley; the two agreed to receive a $5 million donation from a fictions Muslim organization. Schiller proudly proclaimed that NPR is independent, much more so than the “Jewish controlled newspapers.” He also discussed his disgust of the Tea Party, The Republican Party, and Evangelical Christians. The two executives later resigned. The House of Representatives voted to defund NPR.
In the summer of 2011, Project Veritas led an investigation into Medicaid office in six states. In every state Medicaid workers helped cover obvious cases of abuse and fraud on the applications. As a result of the investigation, workers were retrained in Maine and Ohio, the attorney generals in Ohio and Virginia called the videos “outrageous” and “troubling” and sought further investigations.
In addition to his own undercover investigations , James is committed to empowering the next generation of citizen journalists. From student newspaper editors to bloggers to video producers to journalists, enterprising muckrakers across the country look to James for inspiration, advice, and encouragement. Through Project Veritas, James has personally trained and equipped dozens of citizen journalists in an effort to create transparency in government spending.
James O’Keefe is a graduate of Rutgers University. He has received a Congressional Resolution praising him for his work and is a recipient of the Robert Novak Award for Journalistic Excellence. He has been named “Fox News Power Player of the Week” twice by Chris Wallace.
- with Rick Rule
- with John Doody
- with Porter Stansberry
- with Porter Stansberry
- with Doug Casey
- with Rick Rule
- with Alex Jones
- with James Altucher
- with Richard Epstein
- with Porter Stansberry