The Trump administration is doing anything it possibly can to feed the goose, and it looks like it keeps on eating the positive progress news regarding the Phase 1 deal with China.

The one thing that nearly every voter can agree on is that the current administration has worked wonders in the field of deregulation, tax cuts and pro-business agenda, domestically. The problem is that there has been a lot of blowback from the aggressiveness with which Trump has strategized to make China pay for its the decades of growth, at the expense of the American middle class.

These policies have rattled the global economy to the tune of $800B, so far. The Phase 1 deal, which will do away with tariffs, would recoup around $250B of that. These tactics have been costly, but 3-4 years down the road (and certainly 10-20 down the line), we could be looking back at this, seeing how it opened the global economy to trillions in new wealth-creating revenue streams, by “forcing” China to adhere to standards of the developed world.

The Chinese-U.S. trade deal is the most critical financial arrangement of the century. Its results will have a lot to do with the prosperity of individuals from all across the globe.

Therefore, the fact that the FED has decided to cut rates by 0.75% in the span of just a few months, has been in line with the New Economic Regime that governments and central banks are sticking with.

The world is learning that central banks and governments are SOLELY concerned with making sure that the billions of people that live and breathe on this planet have gainful employment and are receiving steady income from it, but they could care less about credit creation or about fixed-income savers, who rely on normalized rates.

Low, zero and negative interest rates policies are a testament to the fact that with longevity, the idea of retirement at 65 is A PIPE DREAM, if you’re using savings as the means to fund 10-20 years of comfortable leisure.

When one retires at 65 and is expected to live an additional 10-20 years, the money that most have saved up is insufficient and they rely on bankrupt governments to fill the gaps. Tax receipts are just not enough to sustain this structure.

Therefore, the new thesis is that people need employment opportunities, no matter what, but the focus on making the cost of borrowing non-existent has intensified the wealth gap, the income gap and the blackholes called government deficits. In other words, in order to assist businesses to expand, using cheap debt and hire more, especially in Europe, we’ve sacrificed the power of having savings.

The reason I diversify my portfolio over various asset classes and the reason for my obsession with constantly growing my businesses – sometimes working for days with little sleep – is because I know we are living on BORROWED TIME.

Most people are sleepwalking. They have no idea what central banking is or what has been the historical tail of purely fiat currencies and how it ends with disaster, each and every time. For the life of them, most couldn’t tell you what the national debt currently is or where interest rates are.

We should all remember that the wealth generated in the stock market belongs primarily to the top 15% of American households.

Over time, the stock market has grown at a pace of around 6.5%-7% in real terms (after adjusting for inflation), while the real economy (GDP growth) has only managed to grow at 2.5%-3.5%.

Most things rise at the rate of inflation, but stocks and real estate can compound faster, thanks to leverage and optimism.

The one thing that can REALLY EXPLODE out of proportion (in a good way) is your income, stemming from smart career choices – I call that transformation a BLOWOUT YEAR.

I’ve already shared 10 of the 16 principles that I use personally; on Thursday, I will introduce numbers 11 and 12. Your brains can grow far faster than inflation and never need to deflate; treat yourself and your life with respect and results are the inevitable outcome!