Tag Archives: economic

Detour on the Road to Ruin

Things look precipitous.

That means, freaking scary. As in, falling off a steep ledge freaking scary. Europe is in shambles. Oil is threatening major industries in the southeast United States (like they needed the challenge).

We’ve talked about the problems here and here, too.

Other bloggers are talking about the uncertain financial future. Most are doubtful that the world’s governments are going to have any success with either their stimulus or austerity programs. In fact, they’ll lead to more instability.

Is there a way out?

Authors Matthew Bishop and Michael Greene recognize that we’re on the Road to Ruin, but believe there’s a way out: the free market. Their book, Road to Ruin, How to Revive Capitalism and Put America Back on Top, explains their philosophy.

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Why We Should Be Rationally Optimistic

Things are falling apart.

Riots in Greece.

Oil spills and volcanoes.


Sudden, inexplicable falls in the stock market.

But when we come to this conclusion, are we participating in a unique psychological phenomena that mistakes pieces for the whole? Another possibility, it that the media tends to over-report the negative and under-report the positive. As any good editor will tell you, “If it bleeds, it leads.”

After reading the The Rational Optimist: How Prosperity Evolves by Matt Ridley, you may start to understand the possibility that things aren’t getting worse; they’re getting better, much better.

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3 Ways Your Beliefs Create Wealth

Stuart Pilbrow@Flickr

Stuart Pilbrow@Flickr

All money is a matter of belief.
–Adam Smith

I know what you’re thinking. This is going to be one of those secret-law-of-attraction-manifesting-type posts.

That’s really only one conjecture of how beliefs create wealth. Even if you don’t believe in any of the New Agey-gooey stuff, the fact is that your beliefs create wealth on different levels.

The first way your beliefs create wealth is on the personal level. Your beliefs affect the way you make money, save money, invest money, and spend money. Those actions together determine how wealth is actualized in your life.

For example, an investor, who believes the world is falling off the edge of a cliff, will immediately act on those beliefs, sell everything he or she has, and be satisfied with the morsels remaining. That one belief determined the wealth of the investor. Since no man or woman is an island, this is just the beginning of the powerful effect beliefs have on the economy.

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Hacking The Depression: How You Can Use Technology To Thrive In Any Economic Era

creative commons pic by Duchamp.

creative commons pic by Duchamp.

There are essentially two schools of economic thought: one is that the individual is the captain of his economic fate; the other says that the winds (dare I say blowhards) of governmental and economic change control the direction of your financial fate.

Both positions have some validity. Many people have made wealth and lost it in divergent economies to make it seem too plausible that the individual has nothing to do with his or her monetary fate. On the other hand, government and business can ferment some pretty big gusts of economic changes.

But, new winds are blowing.

Technology is creating a revolution in your financial power. Moore’s law of ever-increasing computational can put that exponential power in your hands and helps you steer a true course in any economy, at any time and regardless of which empty suit is in power.

This computing power can improve the way you learn, earn, and spend money.

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Weird Ways You Can Time Economic Changes

I’m a big believer in something I call, “Collective Intelligence.”

Collective Intelligence is a kind of “crowd think.” People tend to move in swarms.  (When I’m feeling snarky, I say people tend to move in herds.)

In either case, these crowd movements can offer hints on how society and the economy is moving. According to an article from Kiplinger.com, changes in the nation’s economic climate might be revealed in some weird collective ways.

These are probably indicators you never considered, unless you sell alligator skins. Here are a few weird ways you can check the economic climate:

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Beginner’s Mind And Financial Success

Creative Commons

Creative Commons

When financial distress hits, you notice one thing: people freeze.

The ease of accepting new thoughts and new ideas vanish. They resort to old thinking.

It’s probably a comfort thing. Once you’re stressed, you want to avoid more stress and new situations and new ideas can be uncomfortable and stressful.

We resist risk.

Unfortunately, this is the exact time that you should embrace risk. In the words of Kris Kristofferson by way of Janis Joplin.

Freedom’s just another word for nothin’ left  to lose.

And, perhaps, when you ain’t got nothing, you got everything to win.

If you feel this way, this is a time for a financial “beginner’s mind.”

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