I wanted to know more! So I went to the website! What exactly is a time bank?
The following video points out many of the advantages... it also points out many of the problems we've been introduced to via the current monetary and government model we've adopted over the past 100 years. The loss of community, the loss of value to individual efforts and the loss of care or concern for our fellow man or woman.
It is generally accepted that fiat currencies always fail. In all of history they have and it's pretty clear nothing has changed. The USA adopted a fiat currency by Presidential decree in 1971. Who would have thought we would have let Richard Nixon make such an important decision and not question it...
Since 1913 we've had the Federal Reserve slowly devaluing the dollar, we've lost about 96% of it's value since. But it really got rolling in 1971. If you look at wages in anything other than paper... people's wages have dropped dramatically. Take gold,
For me, this one is very simple! Physical Silver! And to a lesser extent, Gold.
With the governments around the world teetering on collapse and in the US, numerous municipalities, states and even the federal government running head long into bankruptcy... this can only boost the run towards something safe. 2011 may be the year we see the end of the EU and the Euro. And with all the secret deals cut behind the scenes between the Fed and the European central bankers, it won't be long after that the US Dollar will also be in dire straights, even with the Chinese kicking in a trillion or two (I tend to believe that's more theatre than reality).
My gut feeling is by the end of 2011 or maybe the early part of 2012, one ounce of Gold will equal the Dow Industrials. Which means gold is either going to go way up or the stock market is going to sell off this Fed induced bubble. Although their doing everything they can to sell the idea the economy is growing and the Christmas season is booming... the January hangover is either going to reveal the forecasts were way too optimistic or the consumer just blew their last wad... in either case by March it will be obvious how bad the situation is. One must also weigh in new regulations (like the idiots at the FCC), the pending Obamacare debacle and the rising Bond interests rates, these all point to further erosion of confidence and hindrances to business growing. In addition, the budget cuts to state and local public services will only increase the drag on the economy... which means either more federal stimulus or QE3. More money printing!
The following graph shows how borrowing has lost its value to the economy... more borrowing is actually reducing output yet the government continues to borrow more!
Small business people tend, to a large degree, to care about their community and generally operate within the law*.
Unfortunately, large corporations are very much, the opposite. Those who live on the Gulf Coast... or in Alaska... or anywhere near a refinery, pipeline or petrochemical plant may understand this entirely too well. Multinational oil companies operate above the law or just disregard it. The United States was a perfect haven for oil companies... being our military was the police force of the world... along with our level of oil consumption, allowed them to operate under a blind eye. Certain communities dealt with issues like minor oil spills and contaminated ground water, but the controlled media kept it from the national attention. And when they really screwed up and it became clear they were screw ups to everyone... they ran clever PR feel good campaigns. It's all about the illusion... it's much easier and more cost effective, to change people's perceptions than to actually do the work.
I was reminded of this when I viewed this Youtube video relating to oil exploration in Ecuador.
Unfortunately, it's not just Equador. As devastating as that story is... the story is repeated over and over. Take Nigeria as another example.
Contrary to popular belief slavery is alive and well. And if you don't believe me... I plan to give you more information than just a statement. What the bigger message is... is that liberty is something worth fighting for and the system we call our government, in the form of our system of justice specifically, has been corrupted to the point that slavery is once again acceptable.
Slavery is indeed a modern day business. Yet the system that supposedly "protects" us from the evils of the world, like slavery, is actually facilitating the criminal behavior and in many cases profiting from it. It is not simply a necessary evil that we've accepted but something that needs to be examined in detail.
In 2006 I was a regular part-time daytrader. I had a day job so I didn't make allot of trades but I did use a six figure margin account I had established with one of the well known brokerages. When 2007 rolled around, I got cold feet and got out. I likened my feeling to looking out over a bay... feeling a strong breeze from the West and seeing the sailboats with their sails unfurled ... sailing WEST! (the wrong direction) Something was wrong and I couldn't quite put my finger on it... but luckily for me... I knew enough.
At the time, I wasn't watching Al Jazeera English but there was a gentleman who had also noticed. Here's his report from May of 2007.
Many States are bound by laws that make it impossible for them maintain budget deficits. However, that hasn't stopped them from promising money they don't have. It has become increasingly clear that states have created another fiscal problem very much similar to what EU Nations are facing. Currently the books say states are behind by about $1 Trillion but a more reasonable estimate is $3.2 Trillion (States only have $2 Trillion in total assets).If you includes municipalities it's another $.5 Trillion!
Needless to say with these defined benefit programs the difference is being passed on to the future citizens who will have to either make up the difference in dramatically higher taxes or face similar situations that we've seen recently in Greece and Ireland.
The smart thing to do would be to address this problem today. Redefine these programs to defined contributions and cap excessive retirement payouts to wealthy state employees and double dippers. The longer we wait the worse the problem will become because most states and municipalities are already overstretched.
Just one more ponzi scheme unloaded on the taxpayer by dishonest politicians. Take a number!
State and Local Government Sponsored Pensions in the hole for $3.5 Trillion - (Video) Fox Business News
**** Update ****
The government solution to the pension problem is becoming clear for the politicians... declare bankruptcy! Newt Gingrich has a proposal! Allow states to go bankrupt! Of course the pensions will be wiped out... but the politicians can keep spending.
When the rest of the world wallowed in misery, wars and striffe during the late 1800's. America grew into a powerhouse. This on the back of a Civil War. Unfortunately, this threatened the elite's control. Our capitalist system became a target and over the last 100 years America has moved from a free market economy to a government controlled socialistic model. Capitalism in common terms today is just a word used to refer to the evil and miserly rich.
However, there is a small but growing group of people that understand that freedom and liberty is a necessity to American's prosperity and that means returning to Capitalism. That starts with understanding what it is and why and how America grew from a small group of colonies to the world's greatest economic engine.
Those who believe in "capitalism" have some learning to do as well. So I'm not necessarily agreeing with everything said in this interview. For example... "Free trade" is not fair trade. In many cases government subsidies can lower the cost of producing goods and thus can create an artificial environment that can destroy competition. Thus, it is in some cases it may be that Americans need to protect themselves and their industries from unscrupulous governments and groups that would slant the playing field in their favor. However, a court system that was effective and instituted "loser pays" would probably be a much better regulating body than government bureaucrats.
This is really scary stuff. And if your investments are in dollars... you may want to think very hard about what is being said.With 40 or so countries currently tied to the dollar the effects of the dollar aren't being seen at home but the edges are fraying overseas. These countries are in effect, holding the dollar up...
Ben Bernacke June 2009 "The Fed will not monetize the debt!"
What is even more scary is those in Congress who think it would be a good idea for China to allow it's currency to float. This would be unbelievably inflationary at the retail end since most of the products Americans buy come from China. This would set the stage for what the Federal Reserve says can't happen.... Stagflation. Prices rising as the economy continues to stall. But this is very possible since we are relying heavily on imports to keep product prices low. With the price of products increasing fast and being sent overseas this will only add to the sour economy.
A problem isn't necessarily a "problem", it could be a challenge or it could just be an opportunity.
Let's consider football for a moment. The team with the ball is presented with a "problem" getting the ball to the end-zone. Staying within the constraints of the rules, a team endeavors to succeed and solve the problem.
This is an example of creative problem solving! Everyone expected a "Hut!" before the ball was hiked, the ball being hiked through the legs of the center. The quarterback moving fast, instead of slowly walking. However, the savvy quarterback did what no one expected.
This also is a perfect example of a OODA loop in action. The time it took the defensive team to Observe, Orientate, Decide what to do and Act was exactly enough time for the quarterback to slowly walk to a point that he could run for the touchdown.
I have always been on the lookout for problems! Problems for me usually also mean opportunity. I have my methods for identifying them as such... it typically means not only looking at the problem but also looking at it's opposite.
Here's one idea I always go by and this is usually why "problems" in my mind, are a good thing. Freedom equals prosperity! Typically when a construction project is in trouble the principles are willing to listen to creative ideas. Freedom to be creative!
The BNL Blog
I'm no salesman but Harvey McCay, a well know author, says that the sweetest event a salesman dreams of is to hear the sound of his or her name crossing the lips of a someone else. But how that is accomplished is... up to the imagination. I would propose listening. Listening to what the potential client is saying. When you have many solutions (products and services of one's group) then listening to the potential client. Is certainly important. Solving problems that would otherwise go unnoticed can make that problem solving salesperson into the first one considered everytime a problem presents itself.
For nearly 100 years the richest have finagled backroom deals so common in the halls of Congress these days. The Welfare lines are very long for the long list of corporations and business interests that have asked the government for help in keeping their business afloat.
The most popular to point out these days is the financial industry with the TARP bailout... but in all honesty TARP really pale in comparison to the crony capitalism that seems to be hiding in every dark corner of every big business plan. If competition and a free market was the engine that made America the most powerful and wealthiest nation on Earth, crony capitalism and corporate welfare is what is going to bring it to it's knees.
I don't mean to be putting out too much bad news.. Remember, bad news can also mean opportunity! So there are a ton of opportunities in this landscape. Remember "Buy low, sell high!"
After recently reading "Bright-Sided", I must also say I am aware more than ever how being positive can be just as dangerous as being negative. The productive path is being realistic. And far too long have many just believed in the "positive attitude" religion. Once again, an opportunity for those not so easily fooled.
If you think 2011 is going to be a rebound year for the national economy... just read this article.
The average household is going to loose about $200 off their bi-weekly paycheck!
For those looking to bubbles...it's pretty clear to see... interest rates in the form of T-bills, other government bonds as well as mortgages are being manipulated by the Feds and the Federal Reserve. This brings up an idea that Robert Kiyosaki pointed out in his "New Rules of Money". The difference between good debt and bad debt. For those of you who understand this would be a great time to be borrowing!
Regardless of one's beliefs or background... this is something to spend time watching and understanding. Everybody is effected by this. If one has money in the bank, a retirement account, insurance, a 401k... or does business with any financial institution they would certainly want to know this information.
This is one of nine segments. Approximately 75 min total. (A link to the next segment will appear on the screen in the last 20-30 sec)
Modern business runs on innovation, wise decision making, cooperation and timing. Obviously the speed at which this is done can be advantageous. But speed isn't always the most important thing... Yes in warfare, in sports and in a very competitive business environment it is, but what may be important to most is doing things better tomorrow than was done yesterday... Or better next month than last month... Or better next year than last.
With the current business environment it seems small businesses are being edged out of the marketplace by much larger corporate structures. This may sound like a big problem... but to a non-linear thinker, the bigger the problem... the bigger the opportunity.
If you look at the food industry for example, corporate chains have proliferated the market... the mom and pops of old have, for the most part, disappeared. Even as the market is expanding, as more people are dining out with both parents working, the competitive edge of mass production of food and food service has given corporate chains a distinct advantage. Thus most small mom and pop restaurants have disappeared.
Corporate systems in general prescribe to linear thinking. These processes streamline production but rarely lead to groundbreaking innovation. As Gen. Van Riper points out below in the second video (Leadership Part 1) he mentions the second law of thermodynamics... that all closed systems trend toward entropy(chaos). For the small businessman, the non-linear thinker, this also means an opportunity. What opportunity I'm not sure... I'm not in the food business. But an innovator in that business can surely tell you.
"The ideas of economists and political philosophers, both when they are right and when they are wrong, are more powerful than is commonly understood. Indeed the world is ruled by little else. Practical men, who believe themselves to be quite exempt from any intellectual influence, are usually the slaves of some defunct economist." ~John Maynard Keynes
I am not a expert in economics but I consider myself knowledgeable enough to have an opinion. I will be more than happy to admit I am impartial. Most have little clue of what economics entails and ever fewer are concerned about it. Unfortunately, it does matter... In fact, it matters much more than who is running Congress or who is sitting in the White House. With the advent of a Central Bank in the United States in 1913, it was inevitable that the central bankers would have to invent or elevate an economic model that would make their role essential in the functioning of the economy. Luckily or otherwise, John Maynard Keynes came along with his General Theory and his animal spirits... however, his wasn't the only idea, at the time there was another economist, F.A. Hayek, who pointed out the problems with the Keynesian economic model and advocated another model -the Austrian model of economics. The major problem with Keynes' theory according to Hayek... inflation and malinvestment would always create a Boom and then a Bust. The lines were drawn.
With all the money that could be printed to back up his "idea", it wasn't long before Keynesian economics ruled the world... and politicians, especially those who had no interest in being fiscally responsible, jumped for joy!
With the economy struggling... no matter which political view you espouse to, it's easy to fall victim to all the negative news that's out there. Some might be pessimistic but hopeful while others are downright gloomy. I just wanted to have a spot to round it all up in so I'm designating this the Gloom Zone.
Be warned, some of this information serves a particular purpose or agenda. You have to be sure that if someone is proposing a solution... they first have to have a problem... and so a problem is sometimes created, or highlighted or exposed... it could be from legitimate concern but it also might just be from a good way to make a quick buck or promote one's credibility.
I do believe we have allot of problems in America but I also believe we have just as many solutions. The greatest of those being our heritage of Liberty, Justice, a solid work ethic and a commitment to Innovation.
Manufacturing in the United States is shrinking! It's no doubt that our manufacturing base, a segment that used to provide more than 25% of our economy is being shipped off to foreign shores. It's just above 10% of the economy today and much of that is related to government. But there are still some left!
Linda G. has found some American made products! (this was a response to iconic products no longer made in the USA)
You got me on the canned sardines - 04/19/10 The lone survivor, the Stinson Seafood plant h...ere in this eastern Maine shoreside town, shuts down this week after a century in operation. It is the last sardine cannery not just in Maine, but in the United States. http://cbs4denver.com/watercooler/sardine.canneries.close.2.1631524.html
To attain knowledge, add things everyday. To attain wisdom, subtract things everyday. ~Lao Tsu
As important as it is to learn new things sometimes it's just as important to unlearn things.
This is a video of one of the founders of 37 Signals, David Heineimeier Hansson, the creator of Ruby on Rails, given to students of the Stanford MBA Program. (58 min)
It's entitled "Unlearn your MBA" and I think he makes some very important points. He also make some rather controversial statements. Some of them being:
96.7% of his college education was time wasted.
Veer away from the Heavy Management Theory. It's irrelevant.
Communication needs to be simple and straight forward. Cut out the big words!
Planning more than 2 months into the future is just a waste of time.
Warning... this blog is under construction. You may need to come back because I'm adding more as I go along.
OK... here's one for the Halloween party! A Question: Two and a half billion people live on less than two dollars a day, the average annual income for the world is about $8,700. Yet the median income in the USA is over $47,000! Why is the average American so rich?
Ask people!
The answers may amaze you! Few people really know. I got the idea from watching John Stossel's latest show on Why is America so Rich? But I must admit when I ask people I really am shocked by how little people know...
Most just have no clue... some might concoct something from a movie they saw.... some will suggest... Exploitation, Resources, Banks, Democracy, our Military... hmmm... eh...No!
The answer should be loud and clear... it's ######. And the big reason we are having an economic downturn... the erosion of #######. Curiosity comes in many forms. People will certainly be curious when they notice their wallet is empty. Their friends may have been hauled away to jail for breaking one of those millions of rules... oh well... too bad for them... another might have disappeared after they lost their job, then their home... they might have just been lazy... but when the time finally comes that a person realizes they just don't have as much as they thought they did... they might start to think... Why?
"The embargo is expanding” beyond Japan, said one of the three rare earth industry officials, all of whom insisted on anonymity for fear of business retaliation by Chinese authorities.
China mines 95 percent of the world’s rare earth elements, which have broad commercial and military applications, and are vital to the manufacture of products as diverse as cellphones, large wind turbines and guided missiles. Any curtailment of Chinese supplies of rare earths is likely to be greeted with alarm in Western capitals, particularly because Western companies are believed to keep much smaller stockpiles of rare earths than Japanese companies.
Most people, even many of the "experts" define inflation as what happens when the price of something goes up at the store. "Inflation is an increase in the price of a basket of goods and services that is representative of the economy as a whole." according to about.com. This definition has been promoted by the government and Keynesian economists for some time. The CPI (Consumer Price Index) certainly is the tool we use to detect inflation... isn't it? Well actually no... the rules that govern the CPI are rather mysteriously slanted to hide cost increases. Real Clear Markets covered this in an article called "Government Stats Hide Inflation Truth"
1971 was not just one of those years... It was the beginning of the new rules of money according to Robert Kiyosaki. It became very clear with the introduction of what would later be called a 401k in 1974. The old rules of money had been around for a long time but they had been showing some signs... they weren't working so well. I can't explain it any better, listen to Robert Kiyosaki.
Robert Kiyosaki has published several books that are very relevant to the new rules. But first the "Old Rules":
1. Go to School to get a good Job
2. Work Hard
3. Save Money
4. Buy a House
5. Get out of Debt
6. Invest for the Long Term
7. Diversify
Robert's "New Rules of Money":
1. Get a good financial education (get familiar with Austrian Economics)
2. Know the difference from a Job and Work (Cashflow Quadrant)
3. Hedge not Save
4. Know the difference between an Asset and a Liability (Cashflow)
5. Know what Good Debt and Bad Debt is (Debtors can be Winners)
6. Know the difference between Buy, Sell and Fool (The Greater Fool Theory)
7. Follow One Course Until it's Successful (Don't Diversify, FOCUS)
New ideas can move mountains. Just look at what products such as cell phones have done over the past twenty years. However, as powerful as an idea can be... restrictions to those ideas can be just as great. Today, there is somewhere near 1 billion cell phones in existence yet not one cell phone is manufactured in the United States. A country that at one time used to be the pinnacle in manufacturing and technology.
This is why getting a good education is significant. And as a society encouraging that education understanding how it will effect the economic well being of that society.
When I say "education", I'm refering to something much different to what is being called education in most settings. Education has become Indoctrination in most of our educational institutions. If innovation is going to flourish students need to learn more independent thinking, problem solving and creativity. One will rarely see this taking place in most classrooms. Even at the University level... many industries, fearing it may spawn competition has slowly syphoned off creativity in favor of standard acceptable practices... when it comes to a profession. Even many scientists have fallen victim to following the money (mainly in the form of grants) over actually following a passion for curiousity and discovery.
Although it is now fairly clear that Global Warming and man made carbon dioxide as a connection to it has been proven to be a hoax concocted to provide a new global source for taxation and political control of industry. The added emphasis on carbon dioxide alone has led to innovation. Here is just one example... a new rocket fuel that uses carbon dioxide. It not only could fuel a rocket but it could also be an important step in furthering space exploration since the spacecraft could refuel itself instead of having to carrying enough fuel for a roundtrip.
I put together and did a speech to a local group on a very interesting book I found at the library. It caught my attention right off the bat because the cover exclaims... WORK SUCKS! Indeed, many can identify with this... so my compliments to the one's who thought the title up. The book discusses a new type of management technique. Much like the one discussed by General Paul Van Riper in my previous post. A working environment where the employees are only responsible for their results. Results Only Work Environment, ROWE for short. The founding fathers called it freedom...but hey... copyright laws and such... you know the drill.
This book was released several years ago and although it does have real examples of success, it does have a huge hill to climb because most businesses have become archaic top down organizations where independent thought is frowned upon and effective leadership is rarely recognized.
This is certainly a tough sell in those environments, where trust isn't even considered an option let alone possible. This has been expressed in several blogs but I like this particular one, written by Lance Haun and entitled 'ROWE is dead and I am sad'. Mr. Haun writes that there's three reasons why ROWE is hard to implement in most businesses: 1. HR doesn't trust the managers or the employees; 2. Manager's don't trust their employees; 3. Managing by results scares everyone. So essentially he feels the typical working environment is one of little trust and lots of fear. I'd say from my experience... he's right on! He does admit however that some forward thinking business with enough motivation to compete will eventually implement ROWE. Ah! An opportunity!!
I stumbled across this and boy...it really blew my mind how relevant this information could be. This could indeed be a very important discovery! I have wondered why some things motivate some people and why others just don't seem that motivated at all...and then a certain situation transpires and they flip. This definitely gave me some new insight.
There are people that perceive the present as the most relevant, others look to the future or the past... and that can make a huge difference in what they find important! This most definitely has applications in the workplace, medicine as well as everyday living! And what's even more interesting is this can be geographic "as you near the equator you find more 'present' minded people", this could be specific to cultures and societies... and it could actually determine an individual's lifestyle. All things that the entrepreneurial spirit could serve!
The Time Paradox: The New Psychology of Time That Will Change Your Life
That doesn't sound very healthy but it is the essence of what made America great. Most leaders don't realize the power they have within their grasp and I believe that is going to change. This is going to be a very healthy change. And one that could ignite an entirely new era that may very well recognize the principles that this country was founded on. Unfortunately, it will probably change because we have no other option. And that may not be a very pretty picture. The current system is falling apart around us and as most try to apply the old rules that don't work they become more bitter and confused.
The problem really is most people don't understand that the world doesn't function in a linear fashion... most systems don't function that way. Take for example a jet airplane... it is a very linear system. It functions for a very specific purpose and all the parts and pieces are made for their specific function. As long as each piece functions properly we have a airplane capable of flight. However, most things don't function in that same fashion. Think of a chessboard... 64 boxes but if we consider all the possible moves that could be made just in those 64 spaces we end up with a number of possibilities so large that even a computer struggles with the number. If you consider all the pieces...all the moves each can make... the complexity continues to become more and more impossible to figure... and this is just a chess board. Now look at something like weather with millions of potential inputs and you start to conclude that although some claim artificial intelligence is right around the corner... the truth is the world is not linear and therefore these problems can't be solved by linear thinking. People are very non-linear and thus, although we've hammered round pegs into square holes for centuries... it generally ends up failing miserably at some point. What leaders and entrepreneurs need to realize is... it's not about telling people what to do... it's pointing out why and letting them figure it out.
Now this isn't something that is easy to wrap most people's brains around... and if you really start to take the time to think about these ideas. You could spend allot of time thinking about them and maybe end up with a headache. Luckily examples are starting to pop up all over and with out further ado let me introduce you to a few of them.
The first is a General that in effect used Chaos theory to wipe the floor with the US military in a wargame called Millennium Challenge 2002. Retire General Paul Van Riper.
The second is a intersection. Outside of Bristol in England.
Leadership and Education
In Command and Out of Control (forgive the video repetition)
Turn off the traffic lights?
Isn't it wonderful! When given a purpose and a reason... people just do it! No need for control.. control is the feedback.
The words that would make anyone cringe when heard: "I'm from the government and I'm here to help." It's unfortunate, but like the local mafia that promises "protection", you can't just head over to the local Don to complain when the "protection" promised doesn't happen. The government may have started with the best of intentions but has failed miserably to deliver on it's promises. Health care is just one example.
The Federal government joined the battle in health care in the 1960's with Lyndon B. Johnson's "Great Society". Don't mind that the Constitution only gave the federal government specific powers... the political success of FDR's "New Deal" inspired politicians that there was allot of money to be funneled... and even a small sliver of the take represented enough for industry and politicians to pursue it via political means rather than economic.
There's a great deal of statistics on the growth of health care since the 1960's. From less than 5% of the GDP in 1960 to greater than 15% by the mid-2000's. It's is clearly apparent that government's involvement has increased the cost. Although technology has advanced the level of care in many cases has dropped. This is all too familiar when it comes to government involvement. Rising costs, lower quality, less efficiency and less effectiveness.
Dogs get better healthcare
There is no doubt that health care is a problem. But the solution is not more government, it's removing government and businesses that support government involvement. Where there's competition there is advancement, increased quality and lower costs.
As it has become apparent that there is money to be made in the health care industry through political means there are two more part's to the health care story though.
The first is the introduction of unhealthy elements into the everyday environment in the forms of toxins added to the water and food supply, introduction of harmful substances through vaccinations and other medical proceedures, and the introduction of harmful products such as paint and plastics containing lead on children's toys or cell phones.Thus creating a need for more medical intervention.
The second, the removal of viable alternatives to accepted medical procedures.
This is embodied in numerous things from acupuncture to herbal remedies but one recent movie is The Beautiful Truth. Which was released in 2009. There is much outrage in regard to the movie in the medical industry. Many experts call it "quackery." However, I'm typically intrigued when the main stream uses the "crazy" label on anything. That typically requires more investigation at the least... and looking at our health care system... the experts apparently need allot more studying to do. The main thrust of the movie is allowing the body to fix itself through better nutrition. This is highlighted in the Gerson therapy.
The bottom line is ...people's health is one of their greatest assets. Healthy people are generally much more productive. Productivity is the key to economic growth. Finding what works is definitely becoming more and more essential as the costs of health care increases and each day it's evident that it's worth it. If we could just return health care costs to what they were in 1960 we would realize amazing benefits to the current economy, relieve major burdens on our aging population and more importantly become amazingly productive!
The solutions are out there! It's starts when we decide to do it!
What is going to save us in the economy we are facing?
Simple! Innovation and entrepreneurial spirit... and staying as far away from the federal government as possible! Local small business to the rescue! The heart of America! It's always been that way! And that's not just shop owner's, and people tinkering around with new inventions in their garage...It's everyone! Your not too old, Colonel Sanders proved that, and your not too young to be an entrepreneur! The lessons of how to be innovative, entrepreneurial and self-reliant are lessons we need to be spreading across the nation.
Waiting for Washington is not the solution! And no... it wasn't George Bailey or his ancestors that started the sub-prime mess... that's firmly in between Washington DC and the Federal Reserve on whose to blame. So even getting help from Washington is something most wouldn't recommend. All that paperwork and red tape may eventually be a small businesses' demise... and if there's one thing we don't need to be teaching people is dependence on government.
But here's a few ideas I have. One, think about the money leaving the community... how is it leaking out?
Fuel - 70% of our oil is coming from overseas. Creating a local alternative to that would immediately keep that money from leaving!
Food - Locally grown organic food has real benefits. Growing, gardening, local farming can all contribute to fulfilling that need without sending the money away! We all have a few things we absolutely have to do! In addition, locally grown fresh fruits and vegetables are healthy as well and command premium prices! The large franchises drain communities and in general serve unhealthy food.
Taxes - I would never recommend doing anything illegal. However, avoiding taxes is legal and as an employee a large portion of a person's gross income is taken from them before they ever get a chance to spend it. As a independent contractor, expenses are subtracted from the gross and you are taxed on the difference... and that can represent a huge savings. Some wise person sad a long time ago... if you want to be rich... do what the rich people do... and I guarantee, in most people, who are rich spend allot of time and money avoiding the tax burden.
There's a million more ideas... sites like Springwise.com, Entrepreneur.com, TED or Coolbusinessideas.com are just a few of the places to get ideas on how to impact and develop your local community in a positive way and possibly earn a living doing it at the same time.
In addition websites like kickstarter.com, kiva.com, Accion USA, to name a few, offer new financing opportunities for fledgling business people and entrepreneurs. The potential is only limited by our imagination, our will, and working together to make it happen! Let's make it happen!
Farmville, if your unfamiliar, is the most popular game on Facebook with 118 million downloads and 27 million playing daily. But there might be more to this trend then just playing a game. There might be a huge business opportunity.
In the current business environment businesspeople have to be frugal with their money. Small family farmers have always been that type. One year of bad weather or bad crops and it's another year before there even a chance for income, so expenses have to be carefully considered.
However, farmers in the 21st Century don't just harvest their crop and haul it down to the nearest co-op like in the good ole days! If they're going to be successful, they have to be just as well versed in understanding the marketplace. Luckily a relatively new website smallfarmcentral.com is introducing E-business to this age old business.
Smallfarmcentral.com offers small farmers an opportunity to introduce themselves to the world of the web in a big way. From developing a local following to selling nationally. Taking credit card orders to managing inventory. Right off the bat it's easy to see the opportunities for expanding the role of the farmer and viable occupation for a new generation of farmers.
It doesn't stop there. The huge popularity of the web based Farmville on facebook has entrepreneurs devising new ways of approaching the business. A web entrepreneur has developed Le Verdure Del Mio Orto ('The Vegetables from my Garden') where individuals can become virtual farmers on a real farm! For EUR 850 a average everyday Farmville player will be right at home suggesting crops from 40 different types of vegetables. There is even a few options! From having a photo album of the progress to a scarecrow!
Needless to say, with organic fruits and vegetables gaining in popularity and getting a premium price. And health benefits from fresh food becoming more and more apparent. Farming looks to be a occupation with a great deal of merit for the future!
I'm no lawyer. I refuse to be something that low. Leaches, ticks and parasites do need something to look down on... so I suppose they are necessary. For my lawyer friends... you know I'm just kidding right...
Unfortunately we have allowed lawyers to hammer their existence into everything in our lives. I point this out from two differnet speakers that recently spoke to the TED conference in San Diego this month. It has become the primary way of doing big business in our day. To use political influence to write laws to monopolize or restrict the marketplace and thus we continue on a path towards a meltdown because justice is no longer the concern of the legal system. Even the police have switched from being 'peace officers' to being 'law enforcement.' The system has to change, because in a free society the law has to be respected or the system will not continue. We will either devolve into tyranny or have a revolution.
The land of the free has become a legal minefield, says Philip K. Howard -- especially for teachers and doctors, whose work has been paralyzed by fear of suits. What's the answer? A lawyer himself, Howard has four propositions for simplifying US law.
Mr. Howard makes some excellent points but failed to mention that our legal system did have a simple check and balance in place. In fact, it remains in place, yet few acknowledge it or know about it. It's called the jury and the grand jury. Two of the three votes each citizen has. The jury not only has the power to decide and determine the facts but also (and this is what few know) judge the law.
In 1794 the Supreme Court conducted a jury trial and said "...it is presumed , that the juries are the best judges of the facts; it is, on the other hand, presumed that the courts are the best judges of law. But still both objects are within your power of decision."
"You have the right to take upon yourselves to judge of both, and to determine the law as well as the fact in the controversy." (State of Georgia v. Brailsford, et al, 3 Dall. 1)
This role came under attack in the 1850s when prosecutions under the Fugitive Slave Act were largely thrown out buy juries. Since then, judges have eroded the role of the jury.
Thomas Jefferson warned in 1789 that the judiciary, if given too much power might ruin our Republic. "The new Constitution has secured these [individual rights]in the Executive and Legislative departments: but not in the Judiciary. It should have established trials by the people themselves, that is to say, by jury."
Effectively, the judge is just the administrator, the referee, the judge of the facts and the law is the jury. If this was practiced today and the judge and citizens honestly prepared the jury for their role... much of this complicated law and legal system would be erased. We would return to the simple system Mr. Howard advocates for.
Even creativity is under assault. Larry Lessig, the Net’s most celebrated lawyer, cites John Philip Sousa, celestial copyrights and the "ASCAP cartel" in his argument for reviving our creative culture. We have to restore competition!
The legal system has gotten out of control. There are numerous books on this subject, to name just a few:
Three Felonies a Day:How the Feds Target the Innocent by Harvey Silvergate - The average professional in this country wakes up in the morning, goes to work, comes home, eats dinner, and then goes to sleep, unaware that he or she has likely committed several federal crimes that day. Why? The answer lies in the very nature of modern federal criminal laws, which have exploded in number but also become impossibly broad and vague. The Tyranny of Good Intentions: How Prosecutors and Law Enforcement Are Trampling the Constitution in the Name of Justice by Paul Craig Roberts - The wars we've waged against perceived social ills carry with them a hidden cost of harrowing proportions: the loss of personal liberties as old as the Magna Carta.
Go Directly to Jail: The Criminalization of Almost Everything by Gene Healy - There are over 27,000 pages of the US Code which incorporates violations of federal regulations that are in turn spread throughout tens of thousands of pages of the Code of Federal Regulations.
Citizens need to inform themselves not only on their rights but also their role in the system of government we have. The individual has a great deal of power but only if the have the knowledge. The Citizen's Rule Book. With that knowledge our Republic can be restored and we can have a future worthy of the American Dream and the sacrifices made to keep it the greatest country on earth!
A former NASA rocket engineer may have a solution to the massive and costly electrical grid upgrades necessary to keep American society living and working. Some have said over the next 20 years the United States will have to invest over $1 Trillion in infrastructure to maintain it. But hold it ....what about no grid at all!! The man behind the new business idea is K.R. Sridhar. His idea is shrouded in mystery and is to be released to the public this coming Wednesday at his company's Sunnyvale California headquarters. The company is called Bloom Energy.
Bloom Energy "develops a flexible fuel cell system that produces clean, reliable and affordable energy from a wide range of fuels," ultimately giving consumers the ability to generate their own electricity for less than they pay their utility as well as reduce their carbon emissions by at least half.
"60 Minutes" says the Bloom Box features a new kind of fuel cell. Oxygen combines with fossil fuels like natural gas or renewable fuels like solar, to create a chemical reaction that produces electricity, with no need for power lines from an outside source. Sridhar is an Indian-born engineer who has a Ph.D. in mechanical engineering. He says he hopes to see the day when the average consumer could buy a unit for less than $3,000.
Google was Bloom's first paying customer; a Bloom Box is installed at the Mountain View campus and has been powering a large chunk of the building's energy needs since July 2008. Ebay, Walmart, and FedEx have also installed Bloom Boxes.
This sounds like a amazing idea. Truly American in nature. Allowing homeowners and businesses the ability to cut loose from the grid and offering an alternative to the electrical monopolies. I must say I'm very hopeful!
Everybody loves to throw out a few predictions... I've already started the year off with flying colors... way back in September I picked the New Orleans Saints as my Superbowl winner... and sure enough, just as I predicted, they came thru for me!
Well, here's a few guesses, in my opinion, from the "experts" ...they might get a few of these right... but I tend to believe they put these kind of stories out as filler... and really either don't do their homework, or just go down to the local bar and poll a few of the regulars... or maybe they just put some ideas on a dart board.
From springwise.com "Top 10 business ideas for 2010" I do like a couple of these....#1 (Prepaid membership for local food suppliers) has some real merit for struggling small businesses... but that might be a way to quickly run aground if inflation picks up... which is probably better than 50-50. #7 and #8 sound interesting... I'm all for local solutions and these sound very attractive... but is this 2010 or 2015?
Entrepreneur.com has "2010 Trends: 10 1/2 trends to watch". #1 Economic Turmoil... I'll give them a hand there! We are almost certainly going to have that issue hit us in 2010. And people are going to have to hustle themselves... if they want to keep eating! #5 ... Another mention of local business! Yes! And #7 Texas, this may all hinge on which politician they select (Medina would be a huge boost in the right direction) and #10-1/2 Pets... people are attached to their pets... but 2010? Most of these could have been the entire decade! You might wanna check their 2009 predictions and see if they haven't just recycled!
My favorite is an article from Ezine@rticles.com "This just in! The 10 Small Business Ideas for 2010". I'm not going to be using any diapers myself but I can see a clear pattern to the thinking here! Small, low investment, simple solutions to obvious problems we are going to face in a bad economy. I was going to do a list of ten myself but after reading this article... I think I'm just going to do five and give a thumbs up to Susan Judd!
So here are my top five ideas for 2010.
1. Lobbyist pack your bags! If your smart you'll head down to the state capitals quickly! There's a huge upswell of disgust with the DC crowd and even if they do pull off some crazy legislation... they are headed for a fight with states rights. Just like with the 'Real ID' Act... that has silently died from non-participation... Washington's power is being greatly diminished as people and politicians crack open their Constitutions for the first time in years and discover the 10th Amendment.
2. I'm jumping on the organic bandwagon as well. Although you might get some static from the G-men. I expect to see these businesses grow rapidly. Raw milk is another good bet. As people discover the benefits... and understand the harm of many of the processed foods on the shelves today... it could become a tidal wave.
3. Ebay and Garage Sales. As people run into cash flow problems they will be hard pressed to start looking for dollars wherever they can find them and all that junk in the closets and the garage could probably easily generate a couple grand! If your the savvy type... set yourself up an Ebay account... and after getting rid of you junk, head to the neighbor's garage sales... pick up some nifty trinkets and then sell them on Ebay for a profit!
4. Online business presence. Those local businesses are going to need to be on the web or their going to be left behind... at the minimum a facebook account... but if their smart they will get themself a full time online consultant to keep their name in front of people! If their really lucky, they have a 12 yr old that can give them some tips! It's simple, cost effective and a easy way to compete with the big guys while developing a loyal customer base. But... they better be prepared to satisfy their customers because with that type of community... bad news and bad reviews travels fast!
5. Gold and Silver. If it were me... my portfolio would be at least 25-33% into gold and silver... possibly a few other commodities... with the government printing money like mad men... any tremor could send the dollar off a cliff and there's just too many ways that could go wrong. I hope I'm wrong on this one but with the Keynsians entrenched solidly in DC. and them thinking its the only way, I see a day very near that the inflated money supply comes home to roost.
**Bonus** Local micro-loans. If your not familiar these have been becoming more and more popular in the third world... and highly effective for the money. I believe some enterprising local group could do themselves a great deal of goodwill by taking that money that they are currently sending to Wall St. and start investing in their neighbors. With loans of $500 to $10-15,000 a great deal of local business can be created and stimulated. Plus people have tangible evidence of their investment! The default rate on these loans in third world nations... and this includes war zones!!!... Is less than .05%!
I hope this helps... enjoy your week! And remember... you are in charge of your future!
I'm not a big fan of government statistics... in 2007-08 I was keenly watching the Treasury receipts for signs of the downturn... I knew it was coming...and after a few months I had to realize to save each report as it came out... because it was apparent that they were not only issuing new reports each month but going back and changing previous months reports so as the information would appear consistent. With an election year... you could see the writing on the wall... but they kept the lid on just how bad the economy was long enough for people to elect a new president.
There are various reports I could point to and start picking apart... the most notably is the unemployment rate. It is almost entirely fiction at this point. They might as well say the unemployment rate is 0% and everyone is now employed... People would just have to wonder... 'I must be the only one left! They missed me!'... That of course would fall apart in a few days, maybe a few weeks but one of the rules of governance these days is lie big and loudly... and then retract quietly.
The news is very quick to immediately broadcast a press conference where they suggest the "Recovery has begun!"... yet the little squeaks of all the stories they don't cover is starting to become a rumble... from the myriad of states on the verge of bankruptcy, to the massive real estate defaults being carried by the banks, the non-existent secondary market in mortgages (the Fed is the entire market), the pending commercial real estate collapse, the continued failure of banks around the country, just to name a few...and then we have this:
$1 Trillion of money missing from state pension funds... and that's being very conservative!!! Have you noticed how many career politicians are stepping down this go'round? This may be the greatest heist in all history and more than likely it will have to be covered up by some massive tragedy...
Regardless, I'm confident we still have the winning solution... capitalism and free markets... small limited government... and Americans willing to work to help their fellow man while making a profit. Remember we can always hunt down the crooks, they can only run so far!
There's a million and one new ideas out there for new businesses. As times change, the environment changes and people change which means there's always new opportunities and new markets to be addressed. It takes someone who looks at things a bit differently from the rest... not someone just going thru the motions of everyday life... but thinking and anticipating what people may need today or tomorrow that they didn't get yesterday.
This is just one example... I hope to continue to bring more to light via this blog.
Apparently in a style only reserved for Rock Stars Congressman Ron Paul from Texas made a lot of conservatives very excited... with a message that most wouldn't identify with Republicans. Small business owners across America should take notice. This liberty movement (to some the Tea party-ers) may have a huge impact on the size, shape and purpose of the Federal government in the coming future.
