How Do You Keep Creating “Wealth” in Today’s Economy.
Increasingly often, people ask my opinion on what is likely to happen financially to the world we live in today.
Though I am no “crystal ball” reader I can assure you that the dangers are more numerous and larger than ever before in my lifetime and quite likely, I strongly believe the peak of prosperity is behind us. This is no doom-based scenario. This is the reality we live in today.
Though in the past century, protection could be obtained by keeping your net worth in cash or government bonds. Now, the surplus capacities are so great that most currencies and bonds are likely to continue losing their purchasing power or even their value altogether given the recent flirting of the US government with default.
Mortgages and other forms of debts are over tenfold greater now than ever before 1970, which can cause manifold increases in bankruptcy auctions.
Surplus capacity, which leads to intense competition, has already shown devastating effects on companies who operate airlines and is now beginning to show in companies in ocean shipping and other activities. Also, the present surpluses of cash and liquid assets have pushed yields on bonds and mortgages almost to zero when adjusted for higher cost of living. Clearly, major corrections are likely in the next few years.
Most of the methods of universities and other schools which require residence have become hopelessly obsolete. Probably over half of the universities in the world will disappear quickly over the next thirty years. It is no wonder that we are becoming a dumb downed population with the constant drive on television with shows like “lock up” and “Jersey Shore” becoming the “norm.
Obsolescence is likely to have a devastating effect in a wide variety of human activities, especially in those where advancement is hindered by labor unions or other bureaucracies or by government regulations. If you want to see exactly where the policies of the current administration are taking America, you need to look no further than Flint, Michigan. Flint is the birthplace of General Motors (1908) and the United Auto Workers (1937), the Cain and Abel of the Industrial Age. In 1926, there were more millionaires per capita in the City of Flint than in any other city in the world. In 1960, Flint was a 24/7 town with 13 automobile factories and a population of 200,000 people. Now, we have half that many people, more than 3000 empty and abandoned homes, only three manufacturing plants, and we have the dubious honor of being known as “The Murder Capital of the US.” How did it come to this? Simple. We let labor unions call the shots. With all of the technology, personal communication and worker safety and protection laws in place, unions are irrelevant. In order to hang on to their dwindling power base and money stream, they have devolved into little more than criminal enterprises engaged in racketeering and low-level extortion. They have choked the life out of American industry and education leaving us a nation of impoverished semi-literate sheep who are more interested in who got voted off “Dancing with the Stars” than who is getting voted into the United States Senate. Want to see the future of America? Go vacation in Flint and see for yourself.
Increasing freedom of competition is likely to cause most established institutions to disappear with the next fifty years, especially in nations where there are limits on free competition.
Research and discoveries and efficiency are likely to continue to accelerate. Probably, as quickly as fifty years, as much as ninety percent of education will be done by electronics.
Now, with over one hundred independent nations on earth and rapid advancements in communication, the top one percent of people are likely to progress more rapidly than the others. Such top one percent may consist of those who are multi-millionaires and also, those who are innovators and also, those with top intellectual abilities. Comparisons show that prosperity flows toward those nations having the most freedom of competition.
So with all the gloomy picture out there, how on earth do you keep creating “Wealth” in those real difficult times we’re all facing today?
Well, I strongly believe there are always other people who are as smart, if not smarter than you are; and we at Blackhawk go to great lengths to find those rare individuals, listen to them and back them up in any way we can.
Simultaneously and on the political front, we lobby groups to vote to “power” smart people who know what they are doing and have the proper experience in creating wealth, managing states, cities, companies, etc….not community organizers, pundits and “liberal Ivy League academics” who live in the abstract world and have no clue….though good at manipulating ignorant masses.
Bottom Line: It is for sure a CHOICE….and it is ALL about knowing how to pick up the right people from the vast masses of idiots out there, decipher the real from the slick con artists and put obliterating “firepower” behind those gems to change the world and execute on our business and political agendas.
It is a fact that we at Blackhawk haven’t yet found any better method to prosper during the future financial chaos, which is likely to last many years than to back the “leanest and meanest global operators” running companies that have proven to have the widest profit margins and the most rapidly increasing profits.
In two words: Add “black ops” operator type mercenaries to Nobel prize brainpower and former intelligence/market analysts and then you tell me how much “wealth” you want to create…
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