Economic Outlook
Sometimes the brain-dead decision of one person can set off a contagion that sweeps the world. Merkel’s open invitation to the Muslim, pretend refugees has been tearing Europe apart. The majority are not even from Syria. European states will raise their borders and require a passport because so many of these Muslim “refugees” are unaccounted for, especially after the Brussels attack.
Ted Cruz had to respond to the rising support for Trump over this immigration issue, as it is also becoming the main focus in Britain. Cruz said Trump cannot block Muslims, so he proposed the politically correct version: all Europeans must get a visa to enter the USA. Now Europe is responding as nations always do and the European Union (EU) is currently considering requiring U.S. citizens and Canadians to apply for visas before visiting the country of their choice, even if it’s for a short vacation. Currently, visitors to the U.S. from Poland, Croatia, Cyprus, Bulgaria, and Romania all need a visa. Romanians and Bulgarians also need visas for Canada. The European Commission claims it is trying to achieve a full visa waiver for all member states, but in reality, this is a standard response to Cruz’s statement that he would introduce legislation to impose a visa requirement on all Europeans. The fear is that the Muslims who are interested in terrorism can get into the USA easily via Europe because of what Merkel has done. So we face the problem of closing borders within the EU because the refugees will spread, and that, unfortunately, becomes only logical. It does not appear to be reversible.
….related: DemocracySpring Protest Against Corporate Ownership of Politians
“Crises refine life. In them, you discover what you are.” ~ Allan K. Chalmers
What strikes one immediately is that the Fed has been creating money hand over fist; one hand they create money, with the other hand they buy assets and put it on their books, all looks well until you realize this is something called monetization of debt. Paper buying more paper and in most nations this leads to hyperinflation and a currency collapse. However as the Dollar is the world reserve currency. The Fed can magically create money out of thin air and use this newly created money to pay bills and or prop up markets as is currently the case.
Look at how the total assets of the Fed have skyrocketed since 2004. You will also notice that we have nice channel formations where nothing happens for awhile and then suddenly the Fed’s assets explode. One hand starts to print while the other hand uses this newly created money to buy treasuries, etc.; it’s nothing but one big Ponzi scheme. It has not collapsed because the masses are still asleep and show no signs of waking up so it will go on for a significantly longer period. Translation, the markets will not be allowed to stay down for the count for too long. In other words, strong corrections should be viewed as buying opportunities.
Look how CNBC aired in 2009: in this video one of the members openly describes what is essentially a Ponzi scheme, but the CNBC host goes on to say, well we have a better term for that it’s called “debt monetization” but that is just a nice word for outright robbery and theft.
The market is going to trend higher in such an environment; sure it’s going to be a volatile ride up, but the markets will be spending more time to the upside than to the downside. Hence, all strong corrections/pullbacks have to be viewed through a bullish lens. Lastly, it would be prudent to allocate some money to Gold bullion; look at it as a form of insurance against an unforeseen event.
“Man is not imprisoned by habit. Great changes in him can be wrought by crisis — once that crisis can be recognized and understood.” ~ Norman Cousins
related:by Martin Armstrong: Full Blown Panic at the Fed?
I have been travelling over the last few weeks, including a business trip to Toronto, which is where I started my career in the 1980s as a young electrical engineer. The city seems to be booming right now as many industries, from finance to real estate are doing well, and the region is somewhat sheltered by the downturn in the oil and gas markets.
My few days in the city reminded me of my first trip to Toronto in the fall of 1986. I had graduated with my engineering degree in May of 1986 from Lakehead University in Thunder Bay, Ontario, and had enjoyed a few months off in Vancouver to take in the sights of the world famous Expo 86. As the summer wound down, my job hunting activities in Vancouver ramped up, but the career choices for a newly graduated engineer in Vancouver were slim. After a number of disappointing rejections, I finally received a job offer but it started at a ‘training salary’ of $1,000 per month, which was a modest sum even back then.
It was during a particularly low point that a family friend mentioned to me that if I wanted to be successful I needed to “hunt at the watering hole”. While not a hunter, I got the analogy immediately and decided that if I was to launch my career, I needed to go where all the action was and throw myself in the middle of it. In Canada, the business centre of the action was and still remains Toronto. So on a Monday I purchased a one-way ticket to fly to Toronto that Friday, and within two weeks of arriving had landed a job with The Ford Motor Company. It was a great start to my career and the rest, as they say, is history.
Over the course of my career, I periodically needed to remind myself to ‘hunt at the watering hole’ or to ‘go where the action is and throw myself in the middle of it’. My recent trip back to Toronto was another good reminder. It is a good reminder for you as well, from both a career and business perspective. I am not suggesting moving to Toronto, however, that may be a good option for some businesses or people. What I am suggesting is to remind yourself that the purpose of your business is to creatively develop products and solutions that help the most number of people solve problems, and then charge them for it. You can do that best where the action is hottest and your customer are concentrated!
Use these three steps to make it happen:
Strategy: As the world changes, the best way to service that large number of people with a valuable product or service changes over time, as the market needs change. This requires a constant readjustment of the business strategy to ensure you are moving towards the action, and not becoming stagnant so the action moves away from you. The action is your feedback mechanism.
Value Proposition: This approach requires you, the business leader, to become truthful with your value proposition, so you do not become overly enamoured with your existing products and services, rather you listen to what the market really wants and provide it.
Scale: Being in the centre of the action is the best way to achieve scale (growth) and critical mass (risk mitigation) since a business is generally able to secure more customers at a lower cost. The action could be an online marketplace or physical. Either way, the idea is to focus on where your customers congregate and then mix with them so you understand their buying patterns and detect changes more rapidly.
Be thoughtful and serious about your business, and ask yourself if you are truly focused on where the action is. If the answer is no, be honest with yourself and correct the situation immediately. Tamp down pride, particularly when money is at stake. It takes courage to admit you are wrong, and then leadership to fix it. As Ann Landers famously said, “Don’t accept your dog’s admiration as conclusive evidence that you are wonderful.”
Find out where the action is and through yourself in the middle of it!
Have a great day!
By Eamonn Percy
Also by Eamonn Percy:
A classic article by the recently passed 92 year old Legend Richard Russell:
About Eamonn Percy
Eamonn is an experienced business leader, with a track record of success in creating shareholder value by helping companies achieve superior performance in global markets. He has held a variety of senior leadership roles with companies in the cleantech, energy, engineering and automotive sectors, including Powertech Labs, Ballard Power Systems, Pirelli Cable & Systems, and Ford Electronics. He has significant board experience in corporate, academic, and regulatory sectors; is active in supporting the local community; and has been honoured with awards such as the BCIT Distinguished Alumni Award and Canada’s Top 40 Under 40 Award. Eamonn has a B. Eng (Electrical) from Lakehead University, MBA (Finance) from University of Toronto, and has completed Executive Education at Stanford University Graduate School of Business.….read more HERE
Oil futures rallied above $42 a barrel Tuesday to settle at their highest level of the year, buoyed by a report that said Saudi Arabia and Russia have reached a deal to freeze production ahead of a meeting of major oil producers this weekend. Adding further support, the Energy Information Administration raised its oil-price forecasts and cut its U.S. output expectations for this year and next. May WTI crude CLK6, +3.99% rose $1.81, or 4.5%, to settle at $42.17 a barrel on the New York Mercantile Exchange. The settlement was the highest for a most-active contract this year.
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