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I believe that Donald Trump has just enacted the largest redistribution of wealth in history. And now we'll break down why and how it was done, and what it means for you, because , frankly, it couldn't have been a better scenario for this development . Think about that for a moment. Before the war, gasoline cost $2.96.
It currently costs an average of $4.43 per gallon in the United States. Mortgage rates are 7.28% , the highest since 2023. At the same time, with gasoline prices so high, oil was $109 a barrel, mortgage rates were at record highs, and 10-year Treasury yields hadn't seen such levels since 2003. So, 23 years ago, and the Nasdaq 100 index just hit a record high again.
So how is this possible? How is it possible that ordinary Americans are feeling so much pain, overpaying due to the Iran war, tariffs, and other factors, while the stock market is not only at historic highs, but possibly becoming even more extreme? In my opinion, this is a massive hidden redistribution of wealth from the poor to the rich, and it is the true definition of a reverse taxation system.
So let's think about this for a moment. First, we need to think about who actually benefits when stocks rise. The bottom 50% of Americans own only 0.6% of stocks, while the top 10% own 87% of stocks. In the second quarter of 2026 alone, the net worth of the richest 10% of Americans was $12.8 trillion, and 84% of that capital came from the stock market.
Households in the richest 0.1% received $30 million each starting in the fourth quarter of 2024, when Trump was elected . So, during the same period of time, there was a lot of government spending and a great need to increase the government debt, which taxpayers have to pay for . Who are not necessarily people who own tax-free capital due to the growth in asset values.
These are all complex terms, but I want you to think about it for a moment. Where do Americans get the money for Donald Trump's policies, the wars we are involved in, or the tax breaks we have seen? Where are these things funded and who benefits from some of these tax cuts? Well, let's think about that for a moment.
Firstly. Bombs. The Congressional Budget Office estimates that as of August 1, we had spent $38 billion on bombs and ammunition alone. This is in addition to the fact that the total cost of this war is likely to reach around $200 billion. So, if you think about it , Americans are paying the bills for the war in Iran to the tune of about $200 billion, according to Harvard.
Harvard just said that the total estimate when it's all finished will probably be around $200 billion, not millions, which is 1/5 of a trillion dollars. So, this increases the US budget deficit, which is paid for by taxpayers. This is number one. So, number one, literally military bombs. We'll write this down.
So, that's number one. This is the first thing taxpayers pay for, while most of them don't benefit from owning stocks, defense or otherwise, right? So, how do taxpayers pay? Number one, bombs. Number two, what else is coming up? Insurance. The United States decided, as private insurance companies stopped insuring oil tankers in the Gulf on March 5, the US government decided to step in with a $40 billion relief fund.
So, think about it: bombs and war, $200 billion in debt to Harvard, get it? Taxpayers pay for it. Insurance, we insure oil tankers to the tune of $40 billion, backed by the full faith and credit of the United States. So, the tankers that got hit, you know who got hit this week, again who got hit over the last few weeks, guess what?
The United States is paying for the repairs of these tankers and paying for the lost cargo. And then American taxpayers pay for new bombs to retaliate against Iran, which then retaliates against our ships, increasing our insurance bills, which we also underwrite. Of course? So, the taxpayer pays for the bombs and the insurance.
And all this is for now, all it does is stimulate the stock market. Of course? But we're not done yet. These are bombs and insurance. We are just getting started. You should think about it. Think about energy, okay? The average American family was forced to pay $471 more for fuel in June. As of today, you know, a year from now.
So, since the beginning of the year, you've spent an average of almost $500 more on fuel from January to June. Diesel fuel prices have skyrocketed. Here in California it's about $8. This is madness. The Dallas Fed said this impact hits poor families 2.9 times harder than rich ones. Low-income families were forced to reduce their gas consumption.
Low-income households reduced consumption by 7%. Guess what the rich did? Rich people, the top layer, well, let's say 10%? They spent 1 % more on fuel consumption. So, in other words, the rich are saying, "Oh, man, stocks are going up. What do we care? I'm going to spend more on fuel and energy. I don't care if gas prices are higher.
Who cares?" People with low incomes suffer the most from this. After all, the Federal Reserve itself has told us that oil shocks— about six Fed officials have said this—spread through the economy in about 6 months. Well, we've been in this state for about 6 months now. So, gasoline is effectively a flat tax, and it hits the poorest the hardest.
This isn't a progressive tax , where higher incomes take more, right? But it's not just about that, friends. This is point number four. Energy. And not just through data centers. And through utilities. Utilities are forced to borrow at higher interest rates. They take out loans at high rates to finance expansion and prevent artificial intelligence from increasing the cost of services.
But 10-year bonds have hit a record, well, 23- year high, which is driving up the cost of electricity. So this hits ordinary consumers again . Number six: mortgage rates. Do you want to buy your first home? Good luck. Currently, mortgage rates are 7.28% . Essentially, people who buy homes sell stocks, make huge down payments, and then they win.
But then again, this is a wealthy part of the country. Besides, who else loses? Well, the country is in debt because of interest on its $40 trillion debt. And $2 trillion in deficits caused by things like that one big, beautiful bill that allowed 100% write- offs for capital goods. So now, if you buy hardware from Nvidia, you're a very rich company like OpenAI or Anthropic, or you can raise a lot of funding, whether you're Microsoft or Amazon or Google, and you can spend tens or hundreds of billions of dollars on infrastructure, you get the benefit of capital goods accounting anyway.
Do you want to write them off 100% right away? Please. Not everyone will do that. You'll see this more often in smaller companies because the larger ones don't want to affect their earnings per share for public trading. But they can take advantage of tax breaks for research and development. Meanwhile, medium and small businesses, which are not listed on the stock market but may still be among the richest 10% in the country, use full tax depreciation and full expense write-offs because they can afford it.
So, they receive tax benefits. So who pays for this ? Taxpayers. It's ordinary Americans who pay for these tax breaks. So now you need to somehow put it all together. Who benefits from all this? Well, companies like Dell. There's this idea of, "Oh, well, you know, guys, Michael Dell, he's a very generous person.
He just donated a bunch of money to people through Trump accounts, you know, they're giving back to society." You are right. Michael Dell really made a contribution. He is expected to have pledged about $6.25 billion to Trump's accounts for the people. And so, my children, I have seven children. I had to think about that for a moment.
I have seven children, and they all have Trump accounts. We were replenishing them, and I don't know why, but six of my seven children got a donation from Michael Dell, and I'm like, " Okay, this is some kind of redistribution, right?" But Michael Dell owns a large stake in, imagine, the company he founded—Dell.
Dell has been a huge beneficiary of the 100% write-off of equipment costs, such as server racks, that Dell sells. So when Dell sells companies, whether public or not, and people can write off 100% of the cost, Dell's pricing power increases. Dell's margins are growing. Dell shares are rising. And guess how much of Dell stock Michael Dell owns?
40.9%. Okay, Kevin, what does that mean? This means that this company now has a market capitalization of $365 billion. And this company literally grew 3.3 times in partnership and cooperation with the Trump administration . That means at 365 billion we were previously at around 110, and he owned around 40.9% , correct?
So, Michael Dell used to have a net worth, possibly in Dell stock, of about $45 billion. His net worth grew from $45 billion to $149 billion in Dell stock alone, mind you. So think about it. This guy's net worth has increased by $100 billion. Dollars. But he returned 6.25 billion to Trump's accounts.
That's very generous. But think about this. If you can tell Trump that you're helping pay for his ballroom or funding Trump's children's accounts that bear his name, then you're essentially getting the tax policies you want to see in the laws Donald Trump signs. So it's probably no surprise that people are somewhat angry.
Michigan consumer sentiment is at 48.1. This is below the 1st percentile level. This is truly terrible. The vast majority of people in America are not benefiting from Dell's skyrocketing stock prices. The vast majority of people are "warmed up" by the prices of gasoline, mortgage rates, oil and 10- year Treasury bonds, which affect their credit cards and car loans.
This is what is "suffocating" them - the rising cost of travel. You want to play a stupid video game right now and you want to buy the latest Nvidia RTX 5090 chip with a suggested retail price of $1,900. The recommended price could be $1999. Good luck trying to get it for less than $7,300 now. A huge middle finger to all gamers.
Why? Because people need to run AI for their startups. And I understand that, okay? I'm just saying this. Because we are also a startup. We're probably part of this damn problem. But at least we're talking about it here and making it clear what's going on. This redistribution of wealth is exactly what is happening.
So, practically speaking, if you don't own Train America stock, if you don't build a business as part of Train America, you're left far behind. You're already so damn far behind. And that sucks. So how do you catch up? I mean, practically, skills in working with artificial intelligence, using AI as a tool, and training.
The more you can learn, the more flexible you can be and the better you can adapt to this environment. Owning American real estate in quality areas where people don't build much. Owning US stocks, even if it's something broad like the S&P 500, just SPY. There will always be the risk of recession or collapse, but paying off debt and using the freedom that debt-free gives you to build or grow a business from scratch, right?
You don't need to create a venture-funded startup. You can develop your business on your own . And learning a skill that allows you to actually participate in that growth is how you can win. But now Americans are being " thrown away." Yes, 62% of Americans own stocks. This is a great statistic. This is great.
But does that mean it's enough for them to really see a significant difference in their lives? And the S&P 500 index grows, say, by 10%, and you own 20,000 shares. Congratulations. You have $2,000 in income that you still have to pay taxes on, unless it's a retirement account. And if it's a retirement account, you still can't use them.
So the reality is: even if people own stocks, they don't own as many as the top 10%. Who will benefit from this war in Iran? In any case, taxpayers are saving the stock market. And the situation is becoming increasingly extreme. This idea of a K-shaped economy is almost like a double L-shaped one .
Well, no, no, it's a K on top, like a vertical line on top, and on the bottom it's like an L. I don't even know how to take that. It just stays at the bottom. This is bad. But let's look at some more data. The best case scenario right now is to help everyone, because I really think there is hope on the horizon.
The best-case scenario now is that some kind of deal is reached, and the yield will indeed show that it has peaked. I'm optimistic about this, but it's possible that I'm blindly optimistic. I think we will be relatively close to the peak yield around 5.27. This is my peak forecast. Around 5.27, I think there will be a further decline.
The thing is, if yields fall, oil continues to fall in price, and mortgage rates drop, guess what happens? The stock will just soar even higher. The Fed won't have to raise rates that much. Stock prices will rise even higher. People will continue to stay away. So you should think about it. Which side of the wealth transfer are you on?
Are you on the side of those who benefit from the wealth transfer that has really only just begun? Or do you pay for it ? And if you say, "I'm crying for this now ." then you should look at some of the components of what we've mentioned here: what you can do to become "AI native", fully immerse yourself in generative AI, fully focus on investing in creating your wealth.
Hell, I've been talking about wealth creation and investing in American trade and American real estate on YouTube since 2017. We are approaching 9 years. It may not be a coincidence, but we literally created nine courses. I'm not trying to force them on you , but you know, over the last 9 years we've released all these different products.
All of this is available at reinvest1.com. We had so many different products that we combined them into one huge product at reinvest1.com. Again, I'm not trying to force this on you, I just want to show that I've been building this for 9 years. I think this is an extremely important time, a great opportunity to jump on the train and move on, given the state of affairs in the country where the rich are only getting richer, and you need to either jump on this train, owning businesses, stocks and real estate, or get left behind.
Now, with respect to real estate, I know it's under pressure in many areas, but real estate is very important as a means of diversification when the market slows down , which is what the stock market will eventually do. We expect Treasury yields to fall, perhaps more sharply than ever, and that likely won't make housing more affordable.
This will most likely simply lead to an increase in housing prices. I'm convinced, and maybe it's an illusion, but if you own $100 million in real estate today, just for example, a random number, it could be $100,000, it doesn't matter, right? I wouldn't be surprised if this amount doubles in 15-20 years .
That 100 will turn into 200 or more because the rates will get lower and people will think, "Oh, the rates are lower, that's great." Yes, but now that $700,000 house is worth $1.7 million. This is madness. But the biggest winners are those who already own real estate, and the sooner you jump on the train, the sooner you can catch up .
But I don't think politicians are here to help you escape this. Now people think, "Oh, okay." " Well, that's why we should vote Democrat." I don't care if you're a Republican or a Democrat. Most of you know that I ran for governor of California to give Gavin Newsom a kick in the ass. I received almost a million votes, but I lost.
But what is very interesting is what I believe: even if the Democrats win the midterm elections or take control of the Republicans, nothing will change in Congress for 2 years. A $5,000 stimulus check— if it happens, cool, you get $5,000, but the debt will go up even more and Treasury yields will probably jump.
Otherwise, we will sit idly by for 2 years, until 2029. If the Democrats win , green energy will likely win: solar, wind, nuclear, whatever. But don't expect the boom to end in America, mainly because I wouldn't be surprised if Democrats further restricted real estate development policies in an attempt to make housing more affordable, but in fact they're only making it more expensive.
That's usually what happens. Look at Manhattan: “Oh, we’re going to freeze rent. "We will limit construction." Wow, what a surprise, real estate prices are going higher, and higher, and higher. And it's not because I'm against Democrats, because frankly , Republicans who often build more homes, like in Austin, Texas, or Florida, drive down prices.
But, you know, if you look at the Republican regime today, their main goal is, " Okay, we need to do everything we can to get the stock market up." So, ironically, Democrats are probably very beneficial to the real estate market because they prevent construction and push prices up. So, they make housing less affordable.
And Republicans are making stocks less affordable. So, in other words, both political forces are simply making everything less accessible. But America continues to move upward. So the only question is whether you are on the right sid.
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