Hello Everyone, we wanted to share a perspective with you on the Russian-Ukrainian war. Most of us have heard the widely accepted narrative on this war from the mainstream media and global government leaders for the past few months. We know Putin invaded the Ukraine, that’s a fact…but why? Is it that Putin wants to expand across eastern Europe and regain the former U.S.S.R.’s geographic boundaries? Or could it be that he simply wants to protect Russia’s borders? What’s the truth behind this?
As we all know (or at least we should all know), there are always two sides to every story. The two sides may not be equal, non the less, there are still two sides. In either case, we believe we have only heard one side. More and more, we are seeing and hearing global narratives that are shaping the thoughts, minds, perspectives, and policies of the world. Usually, it’s the people who suffer for the poor leadership of government leaders. So this begs the question…Is the current narrative “truth”? That’s what we at GMS and our readers and clients are always in search of…truth. We certainly don’t claim to know all the answers on various topics, but we do pride ourselves on considering alternative viewpoints and take them into consideration before arriving at a conclusion on any topic of importance. Thus, we are always willing to consider alternate perspectives especially when they deviate from the common, agreed upon narrative. Before we go further, please understand this point: Let us (GMS) state emphatically, that we are NOT supporters of either Putin nor Zelensky or war. War is brutal, ugly, and costly in all respects. We also believe in most cases, war can be avoided with strong, competent diplomacy backed by decisive, strategic and tactical military action (only if absolutely necessary). Unfortunately, we haven’t witnessed any competent level of diplomacy for many decades.
So let me ask you a question…Are you searching for “truth” or simply seeking information to back your personal conviction or inclination regarding the war in the Ukraine? So, we challenge you to open your mind to alternative sources and positions that may differ from what current government officials and the mainstream media are propagating. It’s a tough soul-searching question that all of us need to ask ourselves regarding any important issue. All we’re encouraging our readers to do, is to watch the following interviews and discussions below, then give some critical thought as to their informational content and perspective they present. Then, weigh it against what you have been hearing or listening to over the past year:
That said…we too (like many of you) are becoming increasingly skeptical of what global governments are presenting as “truth” on many topics of importance. This is especially true when they speak on a unified basis without transparency of open discussion and debate, rather, opting for censorship or cancelling any person opposed to their narrative. This became especially heightened to us when the mainstream media echoed the same message without independent, transparent, in-depth research, and a willingness to look at alternative viewpoints regarding the covid pandemic. What happened? The high-tech social media platforms took it upon themselves to violate every American’s constitutional right to freedom of speech…simply because they disagreed with another’s position, prevalent narrative, or corporate policy (at the expense of violating our constitutional right).
Could this also be the case regarding the Russian-Ukrainian war? We’ve shared a few perspectives with you that do not follow the mainstream media nor with global government leaders narrative. We’re not saying they’re correct in their stated positions, just that they simply should be allowed to be heard and considered in order for us to have a more complete understanding of an issue of such great importance, so that we can make better informed decisions rather than simply following the current narrative like sheeple into making poor policy decisions. The question you have to ask yourselves (each of us) is, are you willing to consider alternative perspectives? Or do you simply trust and comply with the mainstream narrative being pushed by global leaders and news sources as truth? We always encourage our readers to do their own homework and research. Listen to the above referenced interviews and compare them to what you’ve already heard. Get better informed…Listen to both sides of an issue. Then, make up your own mind…and come to a better balanced and informed conclusion.
GMS BUSINESS CONSULTING, INC.– Provides lawyers/law firms, for-profit & non-profit organizations, and business professionals with Accounting Services, Business Development Services (M.A.P.), Business Optimization Services, and Digital Marketing Services. We help business professionals strategically manage and tactically grow their businesses more effectively and efficiently. We do NOT provide investment advice. Contact Us if you are interested in learning more about our services, and in particular about M.A.P.(our 3-phase business development & management solution), designed to help you strategically manage and tactically grow your business. We would welcome the opportunity to speak with you.
Bitcoin’s Sustainability…Yes or No? Is it possible? Does it make sense? Does it make sense to place so much time, capital, and resources into crypto currencies like Bitcoin (and others on Blockchain technology) that require extensive consumption of energy, that lack transactional performance and efficiency, are costly on both sides, and have security vulnerabilities? It appears to us, that these are some of the inherent risks with crypto currencies built with blockchain technology versus “hashgraph” technology. See these comparative charts of the top two blockchain crypto’s built on Blockchain technology versus Hedera’s Hashgraph technology and their crypto currency “HBAR” (CHART #1 and CHART #2).
Many proponents of Bitcoin and hundreds of other crypto currencies proclaim the benefits of these crypto’s, in that they provide a financial solution of decentralization and independence from the control of central banks and the current global financial system. Sounds like it would be a good thing, right? But is that even possible? Is it practical? And if it is, at what cost? Is it even possible to replace the current global financial system with hundreds of different crypto’s currently in the crypto world, each lacking the forementioned performance attributes and capacities (refer to the charts above) required to effectively and efficiently replace the global financial system?
Does it make sense to move from a centralized global financial system that is rapidly becoming evermore streamlined and centralized (as in the sanctions being used against Russia in the current Ukraine/Russia conflict), and move to a “decentralized” system built on what…a lagging technology such as blockchain that is slow, expensive, and incapable of handling hundreds of transactions let alone the billions of transactions on a daily basis? Perhaps we (GMS) are missing something??? How would this “new” system and all their connectivity systems be used on a practical daily basis…how would it be implemented, regulated, monitored, managed and secured? And by who? Consider this ARTICLE on Bloomberg News. Well…let’s explore a few of these points a little further:
PERSPECTIVES: Is Bitcoin Sustainable?
We believe digital money in place now is and will continue to be the progression of future financial transactions globally. But in what form? Is Bitcoin’s Sustainability and other Blockchain crypto’s for that matter, realistic in today’s digital payments system? We have all become accustomed to purchasing products and services in both physical and online stores by either entering a few keystrokes on the computer, tablet, or smartphone by either tapping or scanning our debit cards/credit cards/or smartphones without the need or use of cash or checks, right? We would also presume that nearly all current fiat currencies in the developed countries and in most under-developed countries are also available in digital form as well (no need to carry cash if that’s your choice). For many years the Central Banks digitally increase and decrease the money supply with book entries, and physically prints just enough cash to sustain our current global cash transactional needs. That said, there are several issues surrounding cryptos, and in particular Bitcoin or any other crypto currency based on blockchain technology that we need to address if we’re going to consider adopting them into our daily lives, and to put our trust and confidence in these platforms. We see five critical issues surrounding the viability of Bitcoin and other crypto’s utilizing Blockchain technology, if they can “reasonably” be expected to drive the future global transactions and financial system. Below are the key challenges that stand out to us:
– POINT #1: Transactional Processing Comparisons:
Simply compare the processing capabilities of Bitcoin and Ethereum (using blockchain technology) versus Hedera’s HBAR (using Hashgraph technology). Once again, please refer to these charts: CHART #1 and CHART #2. The evidence and conclusion is obvious! Bitcoin can effectively handle 3 transactions per second (with finality); Ethereum can process a whopping 12 transactions per second (with finality); and HBAR can handle 10,000 transactions per second with finality (and is fully scalable to handle much, much more). Are we missing something? Or is the world being deceived to place their money in ponzie scheme technology “assets” like Bitcoin and Ethereum? We just ask the simple question…”Why would anyone ever place their confidence in a flawed crypto, like Bitcoin or Ethereum which are both based on yesterday’s technology, blockchain technology?” So is Bitcoin’s Sustainability realistic? Let’s look further…
– POINT #2: Transactional – Fee Comparisons:
Simply compare the transactional costs of Bitcoin and Ethereum versus Hedera’s Hashgraph HBAR crypto. Once again, please refer to these charts: CHART #1 and CHART #2. As you can see, Bitcoin transactional cost come in at $22.57; Ethereum transactional cost comes in at $19.55; and HBAR transactional cost comes in at $.0001. The evidence and conclusion is obvious. Let’s move on to the next point…
– POINT #3: Transactional – Energy Cost Comparisons:
The costs of mining and maintaining Bitcoin and other cryptos using blockchain are substantial, and just don’t make sense to us, ESPECIALLY when producing a more costly yet less efficient, and less secure crypto. Please listen to this VIDEO on Bitcoin mining and energy sourcing. Does this make sense? The energy costs just to mine/produce Bitcoin alone are now becoming evident around the world. Mining companies around the world are actively seeking higher efficient / low carbon footprint energy sources to mine Bitcoin. That’s a respectful objective…to reduce the cost of product input and its carbon footprint on the environment. But how much can Bitcoin, Ethereum and other cryptos built on Blockchain technology realistically reduce their costs when compared to the energy costs of Hedera’s HBAR using Hashgraph technology?
Well, let’s look at the charts once again for a comparison (CHART #1 and CHART #2). Bitcoin energy consumption costs come in at 885 kwh; Ethereum energy consumption costs come in at 102 kwh; and HBAR energy consumption costs come in at .00017 kwh. Need we say more? Are you arriving at the same conclusions we have come to? But there’s more, much more if you’re willing to research for yourselves and not take the words of others at face value. The evidence and conclusion is obvious to us. So again, we ask is Bitcoin’s Sustainability realistic? Next point…
– POINT #4: The IMF/IBS/World Bank Factor:
If you believe there will be an independent financial system free of oversight from the world’s central banking system, then we believe this is a very, very flawed and naïve perspective. Do you really believe the central banking powers of this world will allow a replacement financial system that cuts them out of the equation? Who will regulate the cryptos and the exchanges they’re traded on? Who will oversee regulatory issues on an global level? Which crypto will become the “world crypto currency” to be used for daily transactions from over one thousand cryptos currently in the world today? Bitcoin…Ethereum? Really? Based on the evidence just presented? Do you honestly believe Bitcoin or Ethereum have the technological capabilities and capacities to handle this on a global basis? If so, then I urge you to please refer once again to the two charts listed above. In our opinion, the central banks have been working on their own crypto to be the replacement digital currency.
We also urge you to listen to this brief STATEMENT made by the General Manager from the BIS (the Bank of International Settlement). (Please note: this video was shared by Ms. Catherine Austin Fitts through her newsletter, who in our opinion is one of the most intelligent, thoughtful, strategic, and sincere person we have had the privilege of listening to over the past decade. You can subscribe to her newsletter atThe Solari Reportor search for her interviews on YouTube or other platforms). Ok…getting back on point…We also believe the central banking powers have utilized the private sector to create an atmosphere of crypto competition to design and engineer a best-in-class crypto technology. The most capable technology that emerges from this hi-tech competitive war, will legitimately have the capacity to replace existing fiat currencies globally. Once the global banking authorities have tested these technologies and their capabilities on all fronts and make their decision, then they will introduce this new global crypto currency. We are pretty confident it won’t be Bitcoin or Ethereum or any other crypto currency built on Blockchain technology. Rather we believe the future crypto currency (most likely the CBDC) will be built on the Hashgraph technology platform. We’ll see…we could be wrong, but Hashgraph technology appears to be the only technology available in the marketplace capable of handling the global financial transactional needs. So again, we ask is Bitcoin’s Sustainability realistic?
– POINT #5: A Possible Solution:
Hashgraph technology is engineered by a company called Hedera, and their crypto is called HBAR. Ever heard of it? Most likely not. We encourage you to take a deeper dive into the capabilities behind Hashgraph technology and their founders (Leemon Baird and Mance Harmon of Swirlds and Hedera…the creators and minds behind Hashgraph technology. Based on our research over the years, Hashgraph appears to be the only technology platform solution capable of meeting all the requisite standards to become “the” technology of choice used in the future global financial system. So, how does Hashgraph technology differ from other cryptocurrencies built on Blockchain technology? The following two links are with the co-founder of Hashgraph (Mance Harmon) who will better explain the differences between Blockchain and Hashgraph technologies than I can do within this post: Link #1 and Link #2.
Question…So why have most people not heard of Hashgraph technology and their crypto called HBAR? In our opinion, while others have hit social media platforms with a frenzy to promote their “crypto du jour” for get rich quick schemes via short-term trading, Hedera’s strategy on the other hand is built as a serious mathematical, engineering, and technology solution to a very complex challenge. In contrast to other crypto’s including Bitcoin and Ethereum, Hedera has engineered their technology platform from the bottom up. It is designed to be a viable technology solution to solve the future digital global financial transactional needs and challenges AND…incorporates a Global Governing Council to oversee its future utilization. Hashgraph is specifically designed on best in class, mathematics and software engineering that solves the deficiencies that current platforms cannot (like blockchain), and is capable of meeting the ever growing and complex needs of individuals, businesses, and governments globally. Once again, we urge you to visit their websites (Hedera and Swirlds), and you can also refer to our earlier posts on Bitcoin versus Hashgraph by clicking HERE.
CONCLUSION: Is Bitcoin Sustainable?
In conclusion, we believe the frantic Bitcoin price rise is largely based on a presumed “value” by a segment of the public. So the question is; is Bitcoin’s value one of the best Ponzi schemes of the 21st century or is it legitimately a store of “value”? We don’t know the final answer to that. All we can say, is when a crypto…a “technology asset” such as Bitcoin or Ethereum, are based on an inferior technology platform like Blockchain, that it is costly to produce, that it is costly for consumers to transact, and that it is “produced” from a highly inefficient environmental perspective, and that it has security vulnerabilities, why would anyone place any real “value” on it other than for pure speculative purposes? That’s the question we should all ask ourselves.
Sure, if we were speculative traders, I would have loved the opportunity to buy Bitcoin years ago, and sell at today’s price…who wouldn’t? But that’s not the point. The point we’re trying to understand and to share with our readers is…Is there real intrinsic value and sustainability in Bitcoin and these other crypto’s built on Blockchain technology or not? Is it really a store of value? If so, what is their value based on? Does it produce anything…anything of real benefit? Is there real value in Bitcoin or these other crypto’s because other financial experts or celebrities are getting on the bandwagon of something they really don’t understand? Have they been sold a bag of social media hype and promotion that is costly and inefficient? Or…Could they be right and they understand something we don’t? Could we perhaps be missing something and be wrong? Perhaps…but we don’t think so given the data available. We’re always willing to consider new, relevant, viable data that could change our perspectives. However, after nearly four years of research, we keep coming to the same conclusions over and over again because there is no other compelling evidence (not opinions) that we’ve been presented with to change our perspectives. We keep asking ourselves the same questions about Bitcoin and nearly all the other crypto’s…what is their intrinsic value?
In closing, let me ask you this, if Bitcoin or any other crypto (except for HBAR) were valued at$1 or $500 or $500,000 (instead of $40,000 at the time of this post), how would you understand or describe their intrinsic value? Would their utility value be any different? Based on what? We understand the total amount of Bitcoin is fixed and cannot be increased…so what? Does that mean if you have only 21 million rocks of a particular mineral makeup, that therefore those rocks have a store of value? Perhaps it does to those who may collect rocks…they may value those rocks. But what about those people who don’t place any value on those rocks because there is no utility value of the rocks themselves nor in the minerals that can be extracted from those rocks? That’s where our understanding of Bitcoin and nearly all the other crypto currencies we have researched, with the exception of Hedera’s HBAR (because it can solve the issues centered on digitizing financial transactions utilizing a crypto currency.
We believe Bitcoin and many other crypto’s are priced in the market today by supply and demand based on short-term trading hype, mainstream media and social media hype promoting Ponzi-like speculative assets that have little or no realistic or practical utility or intrinsic value. We understand…people have become rich, filthy rich trading these cryptos, no doubt (kudo’s to them)! There are some very rich people that have become tremendously wealthy trading these. Our concern or issue isn’t centered on those people, rather to better understand “why” would anyone place any value on a technology tool or product that has not intrinsic or utility value. Our concern also being expressed is for the everyday person who may get swayed into pouring their life savings or a significant portion of their retirement assets into these so-called digital “assets” (that in our understanding have no real value), and they lose everything they have or a significant portion of their nest egg.
We also want to say, we do believe there are some genuine crypto engineers and software developers who are honestly striving to engineer better financial solutions to our current fiat currency system. We applaud them for that! But at the end of the day, they must provide value…not just short-term hyped trading value. But in our opinion, the crypto currencies available in today’s market place that are built on Blockchain technology have three significant challenges facing them:
Most Cryptos are Utilizing an Inferior Technology – that are incapable of handling the vast amount of financial transactions on a global basis efficiently, that is cost effective to produce and transact, and are highly secure.
The Influence of the IMF/BIS World Bank/Central Banks – If you believe the global financial powers of the world (the IMF/BSI/World Bank and Central Banks) will relinquish control of the future financial system to a decentralized platform of crypto currencies controlled by individuals…then we respectfully disagree. Again, take a listen to what the General Manager of the BIS says about crypto currencies HERE.
Most Importantly…The Word of GOD – In the Bible, God tells us in Revelation 13:11-18 that there will come a time in the near future (based on bible prophecy timelines), when those who do not have the mark of the beast cannot buy or sell… If you’re a believer and follow the Word of God, think this through for just a moment… This means that a future global financial system MUST be in place in order to enforce this, right? This financial system therefore would likely be built on a “centralized” platform so that buying or selling can be enforced…not on a “decentralized” platform, right? This centralized platform must also be capable of executing transactions or cutting off an individual’s access to their financial assets on a global basis in real time, right? The global financial system therefore, cannot be built on hundreds of decentralized cryptos or on a crypto that can only process a handful of transactions per second. The global financial system therefore, would likely need to be be built on a centralized system that must be capable of handling the billions of individual, business and government financial transactions globally on a daily basis. Would you agree?
We also believe the evidence demonstrates that Blockchain technology cannot be the technology utilized because the future currency/crypto currency that would likely be used, must therefore be capable of handling all the banking and financial transactions on a global basis. Why? Because it can’t handle the transactional volume, it isn’t cost-effective on both sides, it isn’t energy efficient, and it isn’t secure enough to meet the global financial system’s needs. So what other technology is currently available to meet the global needs on a daily basis? Based on our research, we believe the technology most likely to be utilized would be Hashgraph technology. So…we come back to the same question from the beginning; Is Bitcoin sustainable…Yes or No? Can it go higher in price? Sure it can as long as there are people who believe it has value! But ask yourselves…value based on what? Speculative demand or real intrinsic or utility value? Only time will tell, but in the meantime we just wanted to cautiously present data and perspectives that we have found to be compelling. After viewing the comparative data presented and the challenges for Bitcoin and Blockchain based crypto’s, we ask you this question…do you believe Bitcoin’s Sustainability is realistic?
The conclusions we have reached (as of today’s posting date), leads us to our forestated conclusions. That said, we are always open to new insights, perspectives and ideas based on sound, proven, verified data. Then, once presented with this evidence, we are certainly willing to update or modify our positions when presented with undisputable evidence…not by social media hype, financial pundit hype or Wall Street hype. Until next time, and as we always state in our posts, do your own homework, then make your own informed conclusions and decisions…
GMS BUSINESS CONSULTING, INC. – Provides lawyers/law firms, for-profit & non-profit organizations, and business professionals with Accounting Services, Business Development Services (M.A.P.), Business Optimization Services, and Digital Marketing Services. We help business professionals strategically manage and tactically grow their businesses more effectively and efficiently. We do NOT provide investment advice. Contact Us if you are interested in learning more about our services, and in particular about M.A.P.(our 3-phase business development & management solution), designed to help you strategically manage and tactically grow your business. We would welcome the opportunity to speak with you.
Today’s post is to address the perceptions vs. facts on Covid-19 and the degree as to how serious it is…or isn’t. Caveat: We are assuming that we can trust the sources and the integrity of the data presented by the CDC and Johns Hopkins and other respected organizations. At this time, we’re not going to address the economic impact of Covid-19, as we’ll save that for another post.
So let’s address the perceptions vs. facts on Covid-19 as it relates to the severity of its contagion and mortality rates. Then we’ll be in a better position to better ascertain whether or not government and health officials are over-dramatizing it’s health implications. Let’s begin…
There are many people questioning or doubting the severity of Covid-19 as presented by government and health officials. Are they over-blowing and dramatizing its contagious and destructive power? Most of the critiques we hear from the media, politicians and protesters regarding the lock-downs and social distancing policies, (people who maybe well-intentioned or not), usually fall short in applying comparative analysis of data and statistics available. That is, they are not comparing apples-with-apples when it comes to comparing Covid-19 data vs. the death rates of other diseases as they formulate their opinions. So, do we simply take their word for it and believe what they say? Certainly not! As we always encourage our client’s and reader’s of this blog…do your own research. Get properly informed! Then we can better understand the situation and make better decisions. So let’s get on with our discussion on the perceptions vs. facts on Covid-19.
I. Discerning Fact vs. Fiction:
At GMS Business Consulting, we have one simple rule to follow as a guiding principle in business; filter out all the “noise” by looking at the data, then compare apples-with-apples, and not apples-with-oranges. Here’s what we mean:
Many people are downplaying or misunderstanding the data and the significance of Covid-19, and believe we should just “get back to work.” “Just use a little hand sanitizer and sport a mask and all is well!” Let the “healthy” people go back to work!” We would agree for healthy people to be allowed to go back to work. We are all for it…if we can be assured that each state has the appropriate testing, medical equipment, medical staffing and policies in place. Currently, we don’t have those in place. Usually these same arguments for getting back to work before the fore-mentioned policies are in place, are followed-up by using comparative mortality rates of various illnesses to substantiate their views. What’s needed, is a clear foundational perspective on what to base a comparative analysis on when using data and statistical information.
II. Annual Deaths in the U.S.
Number of deaths: 2,813,503
Death rate: 863.8 deaths per 100,000 population
Life expectancy: 78.6 years
Infant Mortality rate: 5.79 deaths per 1,000 live births
“A 2018 CDC study published in Clinical Infectious Diseasesexternal icon looked at the percentage of the U.S. population who were sickened by flu using two different methods and compared the findings. Both methods had similar findings, which suggested that on average, about 8% of the U.S. population gets sick from flu each season, with a range of between 3% and 11%, depending on the season.”
Did you catch that? In any given year, approximately 8% of the U.S. population (8% of approx. 330,000,000 million people in the U.S.) equates to approximately 26,400,000 people become infected with the flu annually. Again, it’s about Perceptions vs. Facts on Covid-19.
The CDC estimates that influenza has resulted in between 9 million – 45 million illnesses, between 140,000 – 810,000 hospitalizations and between 12,000 – 61,000 deaths annually since 2010. This equates to an estimated mortality rate of approximately .10%
Remember the above mortality rate and what it’s telling us in terms of the annual deaths from the flu in the U.S. versus Covid-19. Now lets take a look at Covid-19…
V. COVID-19 Cases and Mortality by Country AS OF 4-23-20.
You may be able to spread flu to someone else before you know you are sick, as well as while you are sick.
People with flu are most contagious in the first 3-4 days after their illness begins.
Some otherwise healthy adults may be able to infect others beginning 1 day before symptoms develop and up to 5 to 7 days after becoming sick.
Remember the “average” annual contagion rate for the annual flu here in the U.S. is 8%, and a mortality rate of .10%.
Covid-19 – Period of Contagiousness:
According to the CDC, the contagion infection of Covid-19 can be asymptomatic with no signs of infection or flu-like symptoms for as long as 2 weeks! This means the virus can spread exponentially faster than the regular flu because seemingly healthy people are able to spread the virus with anyone they come in contact with or touch any surface in their daily life for 2 WEEKS (and perhaps longer) without ever realizing they’re infected. Based on the data provided, the Covid-19 contagion and mortality rates are VASTLY different to the annual flu!
As you see from the above chart, the current mortality rate here in the U.S. for Covid-19 is 5.5% vs. .10% for the annual flu! The differences in the infection rate and mortality rate of the annual flu vs. Covid-19 is very compelling.
So let’s calculate a hypothetical “apples-to-apples- comparison of Covid-19 “assuming” an identical infection rate as the annual flu in the U.S. (Keeping in mind that Covid-19 is actually far more contagious than the annual flu, but for hypothetical purposes, we’ll apply the same infection rate):
Using an infection rate of 8% on the U.S. population of 330,000,000 people:
Annual Flu – Death Rate using .10% = 26,400 deaths.
Covid-19 – Infections = 26,400,000. (using same infection rate as the flu.)
Covid-19 – Death Rate using 5.5% = 1,452,000 deaths.
That’s an additional 1,425,000 potential deaths for the same amount of infections! And we know Covid-19 is far more infectious than the annual flu due to the asymptomatic incubation time that could be as much as two weeks or longer BEFORE any symptoms become present! In other words, this makes Covid-19 55 times more lethal than the annual flu, and we haven’t even touched on the point of demographics of those who have been hit hardest by this virus.
Can you see why it’s important to compare apples-to-apples and not apples-to-oranges? This foundational comparison can help us better distinguish the perceptions vs. facts on Covid-19.
VI. Conclusion:
Again, assuming we can trust the sources and integrity of the data compiled by the various European countries, New York, the CDC, Johns Hopkins University and the like, it appears that Covid-19 is not like the annual flu…it’s much, much worse. Like many of you, we have family and friends who are medical professionals working in the hospitals and health centers. They can tell you their stories and experiences with Covid-19, and where the short comings of our healthcare system are. Our current medical system cannot handle much more than what they have recently faced. Consider us blessed and very fortunate! (Consider the bar chart above in comparison to other countries.) So what have we learned so far?
Social distancing and stay-in lock-downs, face masks, and sanitizing may be an inconvenience, but it has worked so far! Compare the difference it has made versus what the European countries have endured! New York has similar results of Europe, as they only had a 1 week lag time over Italy.
The main differences between the U.S. infection and mortality rates vs. the Europeans and New York, is that we had 2-3 more weeks lead-time (except New York) to prepare and put social distancing and stay-in policies in place.
European countries and New York also utilize mass transit far more extensively than the rest of the U.S. Had the rest of the U.S. utilized mass transit and not had an extra few weeks lead time to prepare…our current results would more closely reflect European countries. (Look at the chart above)
So what’s the answer? Do we continue leaving the restrictive policies in place a little while longer? Or do we prematurely open the country for business and risking a contagion and death rate that gets out of control. At what cost? Economics or lives? Who or what is your moral compass for making decisions like this? We would sure like to know the President’s and Governor’s. Fortunately, we don’t have to make that decision.
Our point is, can we be a little more patient and let each state reopen for business if each state’s Governor can verifyably demonstrate the following:
That their state has an effective Covid-19 policy in place.
That their state has appropriate testing standards and equipment in place.
That their state has the appropriate medical staffing and resources in place.
If the Governor of each state can attest to their constituency, then they should be allowed to reopen for business.
The economic effects that Covid-19 has been devastating not only in terms of magnitude, but in terms of the historical rate of speed which this has happened. Unfortunately, we have NOT begun to see the full repercussions.
Nor have we seen the economic impact of all the digital stimulus money being printed, and what it will bring to bear in the future months and years to come.
But we hope we have been able to at least present informative information to address the perceptions vs. facts on Covid-19 and the seriousness of this virus based on the statistical data provided.
Unquestionably, we are living in unprecedented times, but if you’re a Christian, you should not be surprised by all this. The Bible warns us of times like these to come before the second coming of Jesus Christ. For those of you who are not Christians nor have ever read/studied the Bible, perhaps now is as good a time as any to do so.
So what can we do? Can anything good come out of this? We’ll talk about that next week in our next post. Until then, we can all do the following:
We can be patient with the social distancing policies.
Help others who are in more need than we are.
Do your own research,
Make sure when using data/statistics to compare apples-to-apples…
Pray and read your Bible. You will be enlightened with His promises and comforted with His peace.
Until next week, be patient, stay safe and healthy.
GMS BUSINESS CONSULTING, INC. – provides lawyers/law firms, for-profit & non-profit organizations, and business professionals with Accounting Services, Business Development Services, Business Optimization Services, and Digital Marketing Services. We help business professionals strategically manage and tactically grow their businesses more effectively and efficiently. We do NOT provide investment advice. Contact Us if you are interested in learning more about our services, and in particular about M.A.P.(our 3-phase business development & management solution), designed to help you strategically manage and tactically grow your business. We would welcome the opportunity to speak with you.
Conducting business during the CV pandemic (COVID-19) will not be business as usual (obviously), but it is not only possible it’s doable! However given the right planning, preparation utilizing technology, and with measured and thoughtful precautions in place, business can proceed forward (and it must!). Most of what we’re presenting below is very basic, yet sometimes we need to revisit some of those basic principles before strategically planning ahead. Many, many business we initially interacted with were not as “up to date” on virtual working conditions nor did they have the appropriate plans in place to work through business interruptions like this current situation. Please understand, we’re not holding ourselves as experts in the coronavirus, however we do have experience and expertise in business operations, planning and optimization. Conducting business during the CV pandemic is possible! Let’s take a brief look at a few basic business interruption recommendations and precautions that might be helpful to you or someone else you may know who needs some guidance:
BUSINESS OPERATIONS:
Business Interruption Plan – The first point of defense and offence is having a Business Interruption Plan (BIP). If you haven’t established and implemented a BIP by now…do so now (we can help you with this). This plan will not only be helpful now, but it will serve you well with ANY business interruption that may come along in the future including: natural disasters/ physical office location interruptions etc. (We include a Business Interruption Plan in our M.A.P. solution). BIP become the command and control center for managing and operating your business during a business interruption. If you don’t have a BIP in place, hopefully the following recommendations will provide some initial guidance and food for thought.
Work Remotely – Minimize the staff necessary to be on your site location. For most service providers, online access to office/client work-product should have already been established through online/cloud access to all apps/data/communication. If that has been implemented, then those not required to be “on-site” should work remotely. For those who must remain on-site (for production purposes and tech. support), make sure to implement protective measures to keep others as safe as possible from infection.
Daily Debriefs – Morning and evening business debriefs hosted by management should focus on essential business operations such as: client service & communication/ supply-chain/service providers/ contracted services status etc. Also, make sure the business leader (President/CEO/Managing Partner etc.) personally hosts a daily debrief with all staff. Staff needs to see/hear status and direction from the person in charge. This can be easily accomplished via ZOOM or other online meeting software etc.
Client Communication – All staff involved in client interaction and work-product responsibilities should coordinate, prioritize and communicate with each designated client. The objective should be to keep clients informed on the status of work production that directly affects them. Clients NEED to hear from their service providers (just as we would like to hear from our contracted service providers) in situations like this. However this should be conducted on a more regular basis than is normally customary! Just a simple text/ email/ video-call/ direct phone call letting clients know you’re thinking of them, and providing them with updates regarding their work-product is very meaningful to them. DO NOT underestimate this! Over the years this has been the #1 complaint of clients with their prior service providers. This simple task can be easily accomplished via the technology tools we have at our fingertips today.
Supply Chain & Service ProviderCommunication – Management should already have business interruption measures in place (via the Business Interruption Plan), but in case they don’t, calls must take place so that your organization’s staff can be prepared to work with any disruptions that may impact their client’s work product. Once the status and expectations with suppliers/service providers is understood, then any material information that could affect client work-product, should be communicated to the responsible staff and then directly to clients.
Strategic Planning – Use business interruption situations to better understand and address your organizational weaknesses. Then you can effectively begin to strategically plan your next objectives. Host online meetings with management AND staff to brainstorm and strategize how to best resolve current business challenges internally, and how you can help clients do the same. This is a golden opportunity to add value to existing clients and new clients. Become a valued resource to help clients resolve their problems during a business interruption. Not that you need to have all the answers, but that you become a valued “resource” to help them resolve their challenges. You can do this either by providing the solution or by introducing them to other sources that can help resolve their specific challenges or opportunities. Provide value to your clients by becoming a thought leader…a problem solver other than the work you normally provide. Again, conducting business during the CV pandemic is not only possible it is doable!
PRECAUTIONS:
Pre-Screening – Those employees only deemed “necessary” to work on-site during this particular crisis, should be monitored daily for any possible infection as best as possible. If any of the aforementioned on-site staff are not feeling well or have been exposed to others who are ill, they should be required to work remotely…no exceptions.
Office Location Precautions – Implement the basics…mandatory use of hand sanitizers (when available), mandatory frequent hand washing, mandatory use of disposable gloves etc. Again, only those employees deemed critical to business operational support should be working on-site.
Employee Support & Incentives – Consider offering “Additional Paid-Sick-Time-Off” for ALL your employees. If they’re ill or get ill, then they’ll be covered by YOU…their employer! For those fortunate enough to not get ill from COVID-19, then let this “additional” paid sick-time-off be added to their vacation time. Either way, now would be the time to step-up to the plate and let your employees know you care about them and their livelihood. The additional benefit will come back to you in the form of employee retention.
We hope these basics will be of help to you or someone you know and that you can be reassured that conducting business during the CV pandemic is doable! If you would like to discuss your particular situation further please feel free to Contact Us. Be well, stay safe, and may the Lord protect us.
GMS BUSINESS CONSULTING, INC. – provides lawyers/law firms, for-profit & non-profit organizations, and business professionals with Accounting Services, Business Development Services, Business Optimization Services, and Digital Marketing Services. We help business professionals strategically manage and tactically grow their businesses more effectively and efficiently. We do NOT provide investment advice. Contact Us if you are interested in learning more about our services, and in particular about M.A.P.(our 3-phase business development & management solution), designed to help you strategically manage and tactically grow your business. We would welcome the opportunity to speak with you.
This is an update to “Interest Rates Tell The Story” which we posted on June 24th of this year. We wanted to post this lecture by Danielle DiMartino Booth of Quill Intelligence., as she addresses some very important points regarding interest rates and the “real” stat of the economy and financial markets. Danielle gave this lecture at the Stansberry Conference on October 20th, 2019 in Las Vegas, Nevada.
As a former insider at the Federal Reserve in Dallas for nearly 10 years, and many years experience working on Wall Street, we believe it would be of value to our readers to LISTENto what she has to say. More specifically about what Danielle has to say about interest rates, the state of the economy, the Federal Reserve, and finally on how all this information can be used in making strategic and tactical decisions for you personally and professionally. Remember, interest rates tell the story of what’s really going on in the economy. As we always say, “Do your own research, then make better informed decisions.”
GMS BUSINESS CONSULTING, INC. – provides lawyers/law firms, for-profit & non-profit organizations, and business professionals with Accounting Services, Business Development Services, Business Optimization Services, and Digital Marketing Services. We help business professionals strategically manage and tactically grow their businesses more effectively and efficiently. We do NOT provide investment advice. Contact Us if you are interested in learning more about our services, and in particular about M.A.P.(our 3-phase business development & management solution), designed to help you strategically focus and tactically grow your business. We would welcome the opportunity to speak with you.
Pension Headwinds Ahead is the title for today’s post. As most of you know already, many of the largest pensions here in the U.S. are in deep trouble. With under-funded reserves coupled with low interest rates and declining contributions, for many pension funds, the outflow is greater than the inflow.
We first saw the reality of this situation coming to a head back in 2015. Central States Pension Fund (with over 410,000 employees) applied for benefit cuts. (For a sample listing of pension funds that have applied to cut benefits under the Multiemployer Pension Reform Act click HERE.) Today, according to Bloomberg News, General Electric (GE) announced that they are “taking steps to cut the worst pension deficit in corporate America, by freezing benefits for more than 20,000 employees.” If you think this is just an anomaly, think again. We believe this is only the beginning as pension costs continue to rise, and interest rates near their historical lows, this is just the beginning of additional ones to follow.
This situation is very straight forward. The cash outflows are simply greater than the inflows. As fewer people pay into the pension funds and an increasing number of new retirees begin collecting their pensions, the outflow exceeds the inflow. In addition, with interest rates so low, the investment income received isn’t nearly enough to cover the outflows either. It’s a perfect storm for pension funds.
To better prepare retirees relying on fixed pensions, we recommend they fully inform themselves by taking the following action steps:
1st – Check the status of your pension fund. Do your research if their pension fund has applied for benefits cuts under the Multiemployer Pension Reform Act.
2nd – Meet with your accountant and financial adviser to proactively plan, budget, and make any investment re-positioning for possible pension cuts in near to medium future.
3rd – Reduce your debt…period. Streamline and cut unnecessary expenditures. Seriously consider downsizing your current lifestyle to better position yourself for any unseen pension reductions in the future.
It’s far better to develop a plan and implement now, rather than waiting and being forced to do so at a later time. Remember, it’s up to you to do your own research, then make better informed decisions.
GMS BUSINESS CONSULTING, INC. – provides lawyers/law firms and business professionals with Accounting Services, Business Development Services, Business Optimization Services, and Digital Marketing Services to help business professionals successfully manage and grow their businesses more effectively and efficiently. We do NOT provide investment advice. Contact Us if you are interested in learning more about our services, and in particular about M.A.P.(our 3-phase business development & management solution), designed to help you strategically focus and tactically grow your business. We would welcome the opportunity to speak with you.
This is yet another example of Facebook’s failure to transparently disclose its data policies to its customers. Hello Readers!
This time, according to Bloomberg news, it has to do with outsourcing to “hundreds” of outside contractors transcribing its “Messenger Chats” into usable data (that is…for them to sell/mine or whatever their lack of transparency data policy allows them to do). Were you aware of this policy? Facebook says it doesn’t listen to your conversations, rather they hire hundreds of outside contractors to do this for them. Well isn’t that really the same thing? Of course it is. Facebook’s lack of transparency and abuse of client’s data is abysmal and disingenuous to say the least. That said, I have questions regarding these outside contractors hired by Facebook to do their dirty work, namely:
Who are these outside contractors?
What are their data policies?
What do they do with your data once service is rendered for Facebook?
Where are they located?
Who is monitoring these contractors?
How do they safeguard your data?
Do they adhere to their data policies?
How do you know? How is this verified?
Who monitors their data data retention policies…in other words, who is holding them accountable for YOUR private data?
Certainly not Facebook!
Once again, Facebook has proven that they can’t be trusted with the privacy of their client’s data. This is evidenced by their lack of transparency and lack of full disclosure to their clients in their data policies. Resulting in yet another reason for customers to close accounts at Facebook and send a message to their senior management. However, I don’t believe they really care about what you or I think…they’ve haven’t so far, so why should they change their stripes now?
If you don’t agree with Facebook’s customer data policies, then take a stand and make your voice heard. If you don’t really care about how your data is used without your approval or knowledge, then continue to have your account open at Facebook where your private data can be bought/ sold/ exchanged/ shared/ and traded with hundreds of data contractors who can do the very same thing with your private data if they have similar data policies in place! You can’t say you haven’t been warned!
GMS BUSINESS CONSULTING, INC. – provides lawyers and business professionals with Accounting Services, Business Development Services, Business Optimization Services and Digital Marketing Services. We do NOT provide investment advice. If you are interested in learning more about our consulting services, especially our M.A.P. solution (a Master Action Plan), designed to help business professionals to strategically manage and tactically grow their business, then Contact Us… We would welcome the opportunity to speak with you.
Interest rates tell the story… Good morning readers! Do you want to know where the economy is heading, where the stock market is going, the overall health of the economy? Just follow the interest rates and their upward or downward direction.
How does this affect you as an individual and as a business owner? It affects your personal income and business income, as upward and downward movements in interest rates create both challenges and opportunities. This is pretty basic for most of you. However, we’re going to highlight some interest rate basics below, to help you understand a few charts we’re about to display in a few minutes. But first, here are the basics:
Interest Rate Impact:
Rising Interest Rates – As interest rates begin rising, it’s usually due to one or more reasons:
The economy is heating up, and inflation becomes a concern, so the Federal Reserve increases interest rates to help keep inflation under control. Or…
The local currency is weakening against other leading currencies. So, interest rate increases may be used by the Federal Reserve to prop-up the local currency (too deep for this posting). Or…
Wall Street/or world financial markets indicate that they see an overheating economy, thus urging central banks to raise interest rates.
Lowering Interest Rates – As interest rates begin declining, it’s usually due to one or more reasons:
The economy is slowing down and verging on recession or is in the midst of a recession, and inflation concerns begin to lessen, so the Federal Reserve may lower interest rates to help the economy avoid further decline and begin stimulating the economy towards positive growth. Or…
The local currency is gaining too much strength against other leading currencies, thus impacting its ability to export goods and services. So, interest rate decreases may be used by the Federal Reserve to weaken the local currency to help encourage its exports to foreign countries (too complex for further discussion in this posting). Or…
Wall Street/or world financial markets indicate that they see a declining economy, thus urging central banks to lower interest rates.
From a Personal and Business Perspective:
PERSONAL PERSPECTIVE:
Existing Loans – As interest rates increase or decrease, any adjustable loan payments you have may adjust either upward or downward in accordance with the direction of interest rates. Thus making your loan payments either higher or lower (pretty obvious).
New Loan Qualification & Payment – Your personal income may be affected positively or negatively by any future loans you may be considering or may qualify for (such as home, auto, or personal loans), making your monthly loan payment either more or less expensive in accordance with the direction of interest rates (pretty obvious too, right?).
BUSINESS PERSPECTIVE:
As interest rates increase or decrease, business loans etc. become more or less expensive, thus affecting the business cash-flow positively or negatively (obvious once again).
As interest rates increase, the other costs of business usually increase as well. This reflects an expanding economy where the costs of doing business increase due to an increasing demand for materials and services out-pacing existing supplies.
As interest rates decrease, the costs of conducting business tends to decrease as well. This reflects a slowing or contracting economy that may be either going into a recession or may already be in a recession. This is simply due to the supply of materials and services outpacing demand.
Once Again… Interest Rates Tell The Story:
Let’s now look at the charts below, beginning with interest rates here in the U.S. What story does this chart tell YOU, and how will they impact you personally and professionally?
So, have you noticed a common theme among the “leading” economies of the world when it comes to interest rates? Interest rates are near all-time lows! What does this signify to you? Eleven years after the 2008 – 2009 financial crisis, interest rates here in the US are still near historic lows, and the next two leading economies (behind the US), are even lower. In fact, they are at negative interest rates. It is sometimes explained as an incentive for banks to loan money because depositors will hoard their cash…is that so?
We believe negative interest rates may also reflect something vastly different. Perhaps that the underlying condition of the economy is fragile…very fragile. The economy would have to be very fragile in order to bring interest rates near all-time lows, correct? Then…perhaps to encourage banks to loan money they could take rates lower in order to incentivize lending. But the lending couldn’t be the key reason why interest rates would drop so low. It has to be that the sate of the economy is in such a fragile state that rates needed to be lowered in effort to stimulate a failing economy. We believe that’s the real reason why central banks are lowering interest rates drop so low. They may be out of tricks to keep the world economy running on runaway debt that can never be paid back.
Look at what has happened to Japan over the past two decades? Is this signaling what could happen here in the US? In either case, our point is, that current interest rates on a global levels do not reflect healthy economies nor a healthy financial system. If that’s the case, then how do you prepare yourself personally and professionally? That will be the subject of our next post in several weeks. Until then, do your own research and give this issue some critical thought. It may affect your near-term and long-term planning both personally and professionally. Remember, Interest rates tell the story…what story are they telling you?
GMS BUSINESS CONSULTING, INC. – provides lawyers and business professionals with Accounting Services, Business Development Services, Business Optimization Services and Digital Marketing Services. We do NOT provide investment advice! If you are interested in learning more about our consulting services, especially our M.A.P. solution (a Master Action Plan), designed to help business professionals to strategically manage and tactically grow their business, then Contact Us… We would welcome the opportunity to speak with you.
A FACEBOOK FOLLOW-UP for our readers… We have posted several articles regarding Facebook and its lack of oversight and data privacy policies regarding customer data. We thought this article posted on Bloomberg as reported in the Wall Street Journal speaks to Mark Zuckerberg’s knowledge of data policies and might be of interest to you.
A Facebook Follow-up question for you: Have Americans compromised their ethics and moral values all for the sake of money? By supporting Facebook and it’s President Mark Zuckerberg it sure seems like we have. Does making excuses for Facebook and overlooking Mr. Zuckerberg’s lack of integrity, leadership and oversight reflect a change in our country’s moral compass? Are we personally compromising our integrity and moral values as a people, for the sake of the “almighty dollar”? It would certainly appear so…
Many Americans continue supporting Facebook, despite all the evidence of compromising policies and its customer data in lieu of profits. So, what does that say about us individually and as Americans? Do we value Facebook’s social conveniences and business generating capabilities at the expense of ethics, data policies, customer care, leadership and trust? Have you?
GMS BUSINESS CONSULTING, INC. – provides lawyers and business professionals with Accounting Services, Business Development Services, Business Optimization Services and Digital Marketing Services. We do NOT provide investment advice! If you are interested in learning more about our consulting services, especially our M.A.P. solution (a Master Action Plan), designed to help business professionals to strategically manage and tactically grow their business, then Contact Us… We would welcome the opportunity to speak with you.
The U.S. national debt has become a shame and embarrassment to our country, and is now in excess of $22.2 Trillion. Never before in the history of this world has any nation piled on so high a debt load as the U.S., and it keeps on growing and growing. Read this page on the U.S. debt on Wikipedia, and watch this interview with Jim Rickards on the state of our economy, our national debt, and the reality of our financial markets.
The question many people have is, “So what does that mean to me?” It means your financial future and your children’s financial future are at stake! The value of the assets we own (with the exception of precious metals…gold/silver etc./and perhaps a few others) will not retain their value in the next economic meltdown. Right now we are enjoying the “eye of the financial storm.” To the general public, nothing appears to be wrong. There’s no financial crisis going on (yet), and life seems to be just plugging along just fine. Is it…really? If you look at the foundation of our economy, it paints quite a different picture. (Unfortunately, the foundation of the U.S. economy is debt.) Isn’t this the same perception the public had before each financial crisis including the Dot Com crisis in 2000, and most recent economic collapse back in 2008?
Back in 2008, our national debt was approximately $8.5 Trillion. It took nearly 200 years of this country’s history to pile-up $8.5 Trillion in debt. Now…Nearly 11 years later it has more than DOUBLED, mushrooming to more than $22.2 Trillion. Still think that’s OK? Or…Are we just plugging along with our financial and business senses buried in the sand?
Source: Wikipedia
So…Let me ask you a few simple questions:
Do you believe everything is just fine financially in this country?
How will you personally be impacted by this gargantuan mountain of debt?
What are you doing right now to financially prepare your family and your business for the next financial crisis?
As the old saying goes, “Those who ignore history are destined to repeat it.” We as individuals need to take personal responsibility for ourselves and our financial future, now. We would recommend that you meet with your trusted financial advisers very soon, and have them explain to you just how they have guided you and have structured your current investment portfolio to protect you in the next financial crisis. If they don’t include having a significant portion of your portfolio held in precious metals (gold…physical gold, not gold stocks), then in our humble business opinion, your downside is not protected.
As we always tell our readers, “Don’t rely on others (including us!)…Think for yourselves, do your own research on the U.S. National Debt,” then compare it with the guidance from your trusted advisers. Then make your own decision and accept the consequences and responsibilities from your own choices.
GMS BUSINESS CONSULTING, INC. – provides lawyers/law firms and business professionals with Accounting Services, Business Development Services, Business Optimization Services, and Digital Marketing Services to help business professionals successfully manage and grow their businesses more effectively and efficiently. We do NOT provide investment advice. Contact Us if you are interested in learning more about our services, and in particular about M.A.P.(our 3-phase business development & management solution), designed to help you strategically focus and tactically grow your business. We would welcome the opportunity to speak with you.
