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In the last decade, China has risen to the most powerful country in the world. Historically, China has been a great power three times in its past history and has one of the most successful cultures in human history. Thomas Sowell points out that the Chinese are successful wherever they migrate. As an example, if we look at the top incomes by ethnicity in the United States, we’ll see that the Chinese are high up on the list (note that Taiwan is officially the Republic of China, or the non-Mao version of China, as Mao set China back, while Taiwan never had to worry about Mao). China has also impacted many other Asian cultures throughout history, which shows in other Asian cultures having the strongest levels of income and wealth in the United States and other countries. Yet, in the last century, China turned communist like Russia and almost lost ground against the United States. Deng Xiaoping changed China’s destructive communist fate and is one of many reasons China is the world power.

The Series

  1. 4 Financial Lessons From Alexander Suvorov
  2. 4 Financial Lessons From Genghis Khan
  3. 4 Financial Lessons From John D. Rockefeller
  4. 4 Financial Lessons From Yuri Bezmenov
  5. 4 Financial Lessons From Deng Xiaoping

The Lessons

1. Be quick to admit mistakes and adjust behavior.. True to his adaptable background, Deng Xiaoping admitted that China had jumped into socialism too early. Even though he adopted socialist thought when he was younger and was attached to socialism, he recognized the failure of China’s socialist adoption. Karl Marx had argued that capitalism would eventually make itself irrelevant. Marx was right and wrong: Marx is correct that capitalism will continue to increase productivity in time, making some labor irrelevant. However, labor will always exist – its manner will change. Deng Xiaoping understood that increased productivity can only come under a system that encourages competition and private property (both inherently capitalistic). Socialism cannot increase productivity; its an inherently predatory system, unless productivity has increased to such a level that output is guaranteed regardless of human labor (ie: robots that can make everything humans need will change the nature of human labor).

Why did Deng Xiaoping see this and not other socialistic academics? Deng Xiaoping put aside his ego and his attachment to socialism and accepted what reality said. Ego hindered others from adopting necessary change and China would have never been a world power had the academics succeeded, just like the United States has gone into decline as academics have had more power (the Soviet Union also had the same problem).

What makes a person exceptional is his ability to swallow his ego and accept what works. Not even 1% of people can do this. Deng Xiaoping did.

2. Deng Xiaoping, like Genghis Khan, proved that the underdog has the advantage.. Deng Xiaoping grew up as a peasant with agriculture experience (similar to Mikhail Gorbachev who ended the communist rule in the Soviet Union). Poverty and agriculture teach reality more than any school on the planet – you cannot escape reality when you’re poor. You cannot escape reality when you live by what you produce. By contrast, most modern education is nothing other than an escape from reality. Case in point, this TED talk we highlighted to portray another view of success and failure – though interesting, the talk is filled with inaccuracies and false assumptions. Anyone who’s actually raised livestock knows what mixing breeds with productive and less productive breeds results in catastrophe – in fact, breeds like Araucanas have been selected out of other breeds due to their laying frequency. While it’s true that a chicken will never lay 30 eggs a week (impossible), a chicken which lays 8 eggs a week versus 5-6 eggs a week is superior – this is why we have specific dog breeds, chicken breeds, etc. As humans, we select out the genes we want and this refutes the TED assertion. The difference is the experience of people who live in the reality (producers) versus the academics who postulate theories and formulate meaningless experiments (ie: A chicken only has so much potential so a “super chicken” isn’t a possibility anyway; by contrast, what’s the potential to consciousness? Consider that several hundred years ago people would have said flight was impossible yet the Wright Brothers refuted this).

After Mao Zedong passed, Deng Xiaoping should have been at a disadvantage. Yet, he outmaneuvered his opponents and was able to influence the direction of China. His poverty and experience in agriculture taught him to humbly seek results exclusively – never protect ego, as ego blocks results. When you look at modern education, what you see is the opposite of what success does: modern education protects ego by ignoring results.

Poverty is advantage because poverty forces reality.

Both images show self-righteousness and smug thinking (“I’m better than others”). This is commonplace in an overeducated world disconnected from reality. None of us are better than anyone else, nor will ever be. The images show arrogance; be humble.

3. The exception defines future rules and Deng Xiaoping was an exception. In The Power of the Powerless, Vaclav Havel identifies that a system which is built for the average person destroys everyone in the long run. Why is this? Anyone who undertands basic statistics knows that most people conform to the bulk of a standard bell curve – most people fall within 1-2 deviations of the mean. Why would a system designed for most people fail them in the long run? Because exceptions (statistical outliers) define future rules. The Wright brothers were exceptions – we now can fly. Sir Isaac Newton was an exception – our knowledge of mathematics and physics greatly expectanded because of him. Deng Xiaoping was an exception – he recognized the limits of socialism in its time and China is where it is today.

Average people hate exceptions, like Bill Gates, even though exceptions like Bill Gates drastically increase wealth for everyone in the future, and sometimes in the present. A system designed for average people ends up undermining those same people because no exception can exist in the system (the Soviet and communist systems remove exceptions), thus the people do not benefit from the wealth that exceptions create. A world without the Wright brothers, Bill Gates, Sir Isaac Newton, Deng Xiaoping, etc is not a world you want to live in – these exceptions made us all much richer.

“Isolation almost invariably means poverty and backwardness” (4:50). Take it from Thomas Sowell – echo chambers are incredibly dangerous and will lead straight to poverty.

4. Challenge yourself. We’ve heard and seen the “I’m triggered” from weak Millennials who can’t handle disagreement. The future for these Millennials is poverty, even if that poverty is only reduced opportunity (unseen). Deng Xiaoping never feared challenging his ideas; even as a devoted socialist when younger, he showed a willingness to hear and see other views. His willingness to challenge his own views led to massive wealth creation, not only for himself, but for others in China.

We can find echo chambers everywhere, but be aware – they are incredibly dangerous. They limit potential and wealth. Isolation equals poverty; challenge your views and always stay outside your comfort zone.

Conclusion

Deng Xiaoping lived as the exception that changed the rule, a reflect of how Mother Nature favors the one for the many. As China has grown into the most powerful country in the world for its fourth time in its history, it’s important to review what made China rise to its position and avoid the fate of the Soviet Union. Deng Xiaoping reminds us that poverty can create wealth, humility will lead us to results, and that we should always be where we’re most uncomfortable while staying grounded.


At the end of January 2018, we will be hosting the FinTekNeeks 2018 Investment Outlook Webinar, covering opportunities and answering questions for a few attendees. Like 2017, we will only allow a few participants, so we’re opening registration now for the webinar.

Topics

The topics for the 2018 webinar:

  • The new index fund that will outperform all other index funds.
  • Value and technical opportunities we see for 2018 and beyond.
  • Review and assessment of the 2017 opportunities.
  • Answers to attendees questions and more.

Reserve your spot for the webinar. Since the webinar is first come, first serve, we will use the time stamp on email to determine the cutoff. The cost for the webinar is $891.


The recent Equifax hack will cost consumers significant amounts when measured in time, money and waste. Consumers saw their private information stolen and these detailed pieces will come with costs, even if not immediate. Consumers have already jumped on incorrect solutions (no surprise) and worse may happen. A few months ago, students were cautioned to take certain actions in a limited time only video after the Cloudfare compromise. We caution about security, as it continues to be a re-occuring issue. While most people focus on returns, they fail to pay attention to the most important issue of all – security. A 100% return becomes a 0% return with poor security.

Uglier Truths

In a recent podcast, we discussed two ugly truths about this hack. None of us want to see hacks, but when people live in denial of reality, reality doesn’t cease to be true. This is like a farmer denying that insects will eat his crops and ignoring this truth. The farmer’s denial of truth doesn’t change the truth that insects eat crops, if given the chance. When insects come and consume his crops, he loses his investment. If he had accepted his reality, he could have prepared. The first step to changing one’s reality is to accept the truth of that reality, even if it makes them feel uncomfortable.

The Equifax hack mirrors this. Multiple videos have been removed from the internet with interviews featuring key people. First, why is this? Second, those videos revealed disturbing truths that few seemed to pay attention to at the time. Find videos of other key people at other companies. What about these videos? What are they in charge of? How many hacks have happened recently in the last year and how significant were these hacks?

You don’t need to be an expert to see a trend. Even after the early failures this year, we still see bigger hacks. Have consumers been safer due to their solutions? Have leaders helped improved the situation over the last decade, or even last five years? Your answers to these questions offer insight to the truth. What may be true that you don’t want to admit?

Security Special Protection Sheet

We will be releasing a Security Special Protection Sheet directly related to this hack. Provided that enough people express interest, we will release this in the last two weeks of December – you can contact us now about this and by the end of this week, we will determine if there’s enough interest. If enough interest exists, you will send a payment next week and the email address you send will receive the protection sheet. The cost of this Security Special Protection Sheet is $559. If there is not enough interest, we will not produce this.

For those with fewer funds, we have The Millionaire Guide To Digital Security. Provided that you take all the advice in the course – including the repetitive points – you will have strong security and better security than some people. However, if you fail to follow even one piece of the advice, you almost guarantee your failure in the end.

You were warned. And you’re being warned again. Most people only pay attention to their returns. Yet without strong security, those returns won’t exist.


Yuri Bezmenov lived through the Soviet Union as a KGB spy. He witnessed the transformation of Soviet society under the rule of communism, a form of central planning. The KGB trained him to destroy and conquer other cultures, such as India, without using weapons, but using advanced psychological warfare against opponents. In the below videos, we see his assessment of these techniques as he lays out the KGB toolkit. While most people won’t take the time in their life to watch either clip, you will walk away much richer by watching both videos – Bezmenov makes many valuable points that will enrich your life in more ways than one.

The Series

  1. 4 Financial Lessons From Alexander Suvorov
  2. 4 Financial Lessons From Genghis Khan
  3. 4 Financial Lessons From John D. Rockefeller
  4. 4 Financial Lessons From Yuri Bezmenov

The Videos

The Lessons

Learn real skills. Have you ever seen people debate about creation vs. evolution, discuss theories like string theory or other absurd ideas that will never be proven (or will be refuted at a later date)? These carry no skills whatsoever – they waste people’s time in that they teach nothing of value to the people learning them. Bezmenov lists mathematics, physics, chemistry, etc while mocking non-useful teaching, like “history of urban warfare” or “natural food” and other nonsense. While I agree on the sciences he advises, I would caution readers that theoretical science is not the same as actual science and is not useful whatsoever. In fact, most mathematical and scientific problems that have been solved in the past have been done by people we would consider wrong in many other areas.

Learn real skills and completely ignore theory. What Bezmenov teaches is that real skills carry value and retaining these will enrich our lives. Also, while many people believe that the internet will always exist, it’s entirely possible that it will cease to exist in the future. Any number of disasters could destroy the internet forever. Don’t assume that you’ll always have knowledge available to you – which is an assumption many people make because of the internet. Some tips to mastering this habit:

  • What do you tend to search for (ie: googling)? What’s the pattern and how can you take time to learn this and memorize this information? Search engines may not exist in the future, so how would you get information if they didn’t? How would you get information if the internet didn’t exist?
  • Memorization strengthens your mind; how are you memorizing new information daily? Always remember that the Roman writer, Juvenal, stated that a “sharp mind in a healthy body” is more than most people have. He’s right and most people don’t invest in their mind. For practice, memorize the four points in this post, then try to recall them tomorrow.
  • Ask yourself: how does this information provide me with value? Before you learn anything, know the answer to this. If knowledge provides you with no value or skill, call the “knowledge” what it is: wasteful. Knowledge you can’t use is as wasteful as entertainment, though people love to pretend the former has some sort of value over entertainment.
  • If you choose to attend college, only attend college to learn something that you can use. Most medicine and engineering falls into this category, with medicine and related disciplines carrying massive value due to labor shortages. While Bezmenov recommends mathematics and science as well, I would caution on these if they are more theory than pragmatic learning. Avoid nonsense like the big bang theory, string theory, the theory of evolution (or creation), or any other theoretical discipline. Theoretical “anything” is a waste of time.

There is an inverse to this lesson as well: be incredibly skeptical of anyone who wastes your time in theories or pointless debate.

Ignore and avoid someone unattached to results. Bezmenov saw firsthand the Soviet bureaucracy – “we pretend to work and they pretend to pay us” – and shows why “collecting a paycheck” means nothing if the paycheck comes regardless of results. The only time you should ever get paid is if you created something of value; if you didn’t, you are being paid for doing nothing. You may feel good about this because you have money, but once you begin to realize that others are doing the same thing, what does that say about the society you live in? If you do not get results, you should not get paid. In the long run, a society that earns value without creating value won’t last – the Soviet Union proves this. Money without character is fraud and Mother Nature will prove that fraud in the long run.

If civilization ever collapses, like the Soviet Union collapsed, you will return to a life where you will only eat if you can create food, or some other value that people are willing to exchange food for. The people who learned this lesson the easy way survived (only get paychecks from results); many of the people who didn’t learn this lesson in the Soviet Union died after it collapsed. In other words, if you train yourself to only get paid if you obtain results, you will be prepared when disaster strikes. Reality is clear: if you do not produce value, you should not obtain value. And in the long run, you won’t.

Morality creates and enhances value. Consider the people in your life without morals and compare them to the people in your life with morals. One of the most obvious differences is overall well-being and happiness; deeply religious people are some of the happiest people alive. Religion provides a “why” for morality, whether you agree or not with the why. It also encourages cooperation among people even in competitive environments. A practical comparison of this is the Amish’s entrepreneurial success rate: over 90% of new Amish businesses succeed, even when the new business competes against existing Amish businesses. This is because the Amish help each other, even if they’re competitors. The deeply religious nature of the Amish creates cooperation even though they are very capitalistic people.

As Proverbs 13:20 would warn, avoid people with little or no morals. If someone truly believes there is no Higher Power to answer to, why should they remain honest? Why should they never betray you? When you begin to realize the implication of this belief, you will see why these people may be dangerous later. A wise man knows his limits and he knows why. A fool does not.

Master basic human relations. Bezmenov uses many examples of conflict between people, such as the worker versus the boss, and how the KGB and Soviet bureaucrats used conflicts to enhance their power. Rather than working through conflicts, or negotiating with people directly, the bureaucracy of the Soviet system became the intermediary between these groups in conflict with each other. This feeds on itself: as people demand more intermediaries due to conflicts, they lose skill in negotiating with other people. The irony of this is that all negotiation carries some victory and loss, such as negotiating on the price of a car. By bringing in an intermediary, you guarantee that both parties lose.

If you have deep relationships with people, you will lose sometimes. You will never “win” everything and you shouldn’t anyway, as that’s not healthy. People who learn how interact and negotiate with others will strengthen existing relationships, but will also avoid the pitfalls that many people make when there is a conflict.

Let me re-emphasize that the two videos listed above this paragraph contain a massive amount of value; much more than this post describes. People who want lasting value will watch (less than 5% of the people who read this post). Be a winner and watch both videos; when you finish them, watch them again. Do not make the mistake of assuming that information will always be around. This is the mistake that 95% of people reading this post will make.


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