Grant Cardone – Treat the Economy as a Terminal Disease
TREAT ECONOMY AS TERMINAL DISEASE!
You need to treat the current economic climate as you would a terminal disease! If you were told you had a terminal disease what would you do? Unless you are ready to surrender and die, you would seek every possible solution? You would spend your last dollars in order to find a cure? You would travel to every corner of the planet seeking a solution? You would learn everything you could about the disease so you could find a solution to it!
This is exactly how individuals and businesses need to respond to the current economic situation. The economy is sick and it is no longer important that it is sick or how it got sick or who is to blame! The only thing that is important is what are YOU going to to find your cure!
There are only three possible actions to take and only one is correct:
1) Ignore- (that is what got us here- unwilling to confront the problem)
2) Retreat- (cut back, contract and get smaller- ultimately cease to exist)
3) Attack- (do everything possible to expand and live- survival)
Individuals, businesses and entire governments have already been through the stage of ignoring. (See foreclosures as one example of ignoring). This article is for those that are beyond ignoring and who are deciding whether to retreat or attack.
(SHOW THIS TO EXECUTIVES WHERE YOU WORK)
Most will incorrectly elect actions to retreat as a way to survive. Retreating shows up in management electing to cut spending, reduce payroll, stop hiring, eliminate advertising and quit training. While retreating may seem like the logical thing to do, you would never do this if you knew you had a terminal illness.
While it may seem counter intuitive to expand and attack the market at this time this is the only solution that will ensure you are a winner on the other side of the current scene.
Wilma Rudolph was the 20th of 22 children. She was born prematurely and her survival was doubtful. When she was 4 years old, she contacted double pneumonia and scarlet fever, which left her with a paralyzed left leg. At age 9, she removed the metal leg brace she had been dependent on and began to walk without it. By 13 she had developed rhythmic walk, which doctors said was a miracle. That same year she decided to become a runner and for the next few years she came in last in every race she entered. Everyone told her to quit, but she kept on running. One day she actually won a race and from then went on to win every race she entered. Eventually this little girl, who was told she would never walk again, went on to win three Olympic gold medals.
You can’t win the race by not running. You can’t hit the ball without swinging. You can’t win in life by quitting and you will never find a cure by ignoring or retreating. "Approach your business challenges the same way you would a terminal disease- attack with all your resources, never retreat and never ignore!"
Question about economy
how did the economy cycle work during the great depression?I am writing an essay on the economy cycle during the Great Depression and was wondering these things:
*Explain how the economy works as a cycle.
*Describe how both a flourishing and a failing economy follows a cycle.
*What types of events could cause a break in a successful economy, causing an economy to fail?
Response would be greatlly apriciated, thanks!
- Business
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Distributed by Smashing Magazine
18 Responses
@Jacobrester Understanding the direction the world is heading is very important as you can see by all the money he’s made! Apparently you think the only good advice is correctly saying what a stock will do over a very short period, which is almost always a bit of a gamble. I guess you think short term gambles are more important then long term certainty. What is wrong with your brain?!?!?!?!?!?!
@Jacobrester I have plenty of money and invest in Gold and Silver ETFs. Yes I’m conservative but I know I will maintain purchasing power. I work hard to earn my money and do well. My dad, he can go to hell and I don’t even know where he lives, so you don’t know me at all you idiot! Good for you if you’re a short term trader. But you still cannot discount the fact that Jim Rogers is absolutely correct about the long term direction of the USA and China. Your facts are distorted! Get a life
companies are getting a bailout to avoid going bankrupt after investing in dangerous securities. They were promised huge payoffs from thier investments. This expected increase in revenue lead them to increase their own investments. When the securities failed, it left them without enough money to cover their investments. The bailout is supposed to be used to help them get out of the red
This effects regular people because it is a lot of money that they have to pay out of their pockets. It also reduces confidence in the market. If investors see that their companies need government help to get out of a tough spot it may come off as a bed thing for future investments.
I hope this helps.
We live in realism so far as the World economy is concerned because the World economy has all the components co-existing in different countries: mercantalism economy nationalism, or economy libersalism, or marxism/ historical structure
But the US economy is largely one of economy/ economic liberalism or as close as it cam be because the US citizens have the maximum extent of freedom in choosing what to consume and where to buy from around the World, capital and goods and services move within and cross border with the least restriction, largest proportion of immigration population, free choice of occupation to US citizens, free exit and entry in most industries. Marxim historical structure is now only in history books. Economic nationalism is considered foolishness by consumers across the advanced world.
It has made some Russian "entrepreneurs" very wealthy, while the general population is continues to struggle. No "trickle down" economics over there.
Sounds familiar?
BILLIONAIRE investment guru Warren Buffett has declared that the US recession has begun."We are in a recession," Mr Buffett said in a TV interview.
"Across the board I am seeing a significant slowdown."
Mr Buffett's analysis is supported by a string of data pointing to a contracting economy.
The latest figures show US manufacturing shrank at its fastest pace in almost five years while construction spending fell the most since 1994.
Scott Anderson, a senior economist at Wells Fargo, said: "The evidence is piling up that the economy is slipping into at least a mild recession.
"With the much higher food and energy prices and restricted credit, there are not a lot of avenues for consumers to continue to spend."
US home-building is in its third year of decline, and the collapse in housing is rippling through the economy as consumers pare spending and factories cut production.
The markets are betting the Federal Reserve will cut its benchmark interest rate by 0.75 percentage point at its March 18 meeting.
Fed chairman Ben Bernanke said last week the central bank, which has lowered the key rate by 2.25 percentage points since September, was ready to continue cutting borrowing costs if needed to stimulate growth.
He warned that risks to the outlook included "the possibilities that the housing market or the labour market may deteriorate more than is currently anticipated and that credit conditions may tighten substantially further".
Shares in Mr Buffett's main listed company, Berkshire Hathaway, rose 29 per cent in 2007 and about 4700 per cent over the past 20 years, six times the rise in the Standard & Poor's 500 Index.
Along with insurance operations and a stock portfolio valued at $75 billion, Berkshire owns businesses ranging from confectionery and residential property to utilities and corporate jet leasing, giving Mr Buffett an insider's perspective on the economy and finance.
In last year's annual letter to shareholders, he said his method was to "be fearful when others are greedy, and be greedy when others are fearful".
Source:
http://www.news.com.au/heraldsun/story/0,21985,23320376-664,00.html
1. The bill is needed to stimulate consumption, and the one of the right object to spend the government money is fundamental fields.
2. Emphasis on strong fundamentals of the economy is encouraging investors and consumers to invest and consume more.
This is a very hard question to answer for me because I'm not sure if I should write additional explanations in economics. And, If yes, on how degree. For example, government spending can off-set economic leakages.
It's over 11 pm. It's time for me to go to sleep.
@Jacobrester Did you read @sugarpuddin88 ? Please do so and stop manipulating everything you say. My God I cannot stand you. You distort everything and you hate on someone that should of been listened to for years. Give your bull cr*p a rest and go somewhere else. I’m done arguing with you because you’re pointless!!!!!!!!!!!!!!!!
@jeremyraybrown Suck Jim Rogers ass you fag boy …..the guy is shit
@jeremyraybrown The USA is the worlds largest food exporter…..take a pill….no hunger herre unless it comes purposely….and just so you know…the us dollar is not alone in its devaluation…it has been going on all around the globe
@Jacobrester And what does this have to do with anything. Yes, he said he is the worst short term investor and he holds his assets forever. So your short term analysis of him is completely irrelevant. But that is what you are on earth, irrelevant! However, he understands the world and history and recognizes the trends in monetary policy around the world. In the long run (meaning lasting a few years or more) he is generally spot on where most are way off.
it was interrupted by the great EVIL of socialism… look at the other copies of this question you have already posted
@Jacobrester So success means nothing to you. How nice. You distort everything. And you were so quick to hate on Jim Rogers I didn’t even get to item 3 yet.
3. The USA is increasingly importing more food. The US dollar is diminishing in value and the worst effects of that haven’t been seen yet. So, that means the cost of food goes up! Haven’t you been shopping in the last few years? Plus food supply isn’t keeping up with population growth which will drive up demand! Get a clue!
@jeremyraybrown You are a child……I give you facts of his worthless advice and you throw a tantrum…….I dare you to take his advice……that is if you have any money….borrow some from your daddy
(-: I think they should really mess things up, and give every American a half a million dollars (doesn't even have to be tax free). It'd give people a chance to vote with their dollars about what industries they want saved. And the gov't would get a bunch back in taxes.
Your plan doesn't cost 1.3 trillion, as far as I can figure. Yours would be 1,300,000,000,000, which is only 1.3 billion dollars. You'd need three more zeroes to get it up to a trillion. Three more zeroes would give every American 10 million dollars, and THEN your plan would cost 1.3 trillion (-:.
Hey, I'll take 10 million dollars, too!
Edit: Hmmm. "Oviously" you are one of those poor children who had to learn their mathematics via the New Math system. And your spelling through the New English system, maybe?
Let me give you a brief refresher course:
100 equals one hundred
1,000 equals one thousand
1,000,000 equals one million
1,000,000,000 equals one billion (in the US way of counting)
1,000,000,000,000 equals one trillion (in the US way of counting)
Now, stick THAT in your calculator and see what you get.
1,300,000,000,000 divided by
130,000,000
leaves you 10,000,000.
Poor baby; get a job. You'll need it. I hear McDonald's is still hiring, but with your math skills, I wouldn't be so ambitious.
I have been involved with international trade for over 16 years and study world economics as a hobby so please allow me to share some insight:
The U.S. dollar, still the benchmark for world currency, has been declining in value the past several years. A detriment to U.S. consumers and U.S. companies that import products, the weakening dollar benefits some players in the global marketplace.
Current economic factors that may be signaling recessionary conditions in the U.S. economy and could undermine confidence of U.S. dollar-based assets include the downturn in housing, turbulence in the equity markets and job woes. Additional interest rate cuts by the U.S. Federal Reserve could further erode the return of investors as lower interest rates may produce additional inflationary pressures, lowering the dollar’s value. Also, continued budget and trade deficits tend to weaken the U.S. dollar.
The weak dollar is encouraging foreign manufacturers to set up factories in the U.S., bringing jobs and other economic benefits.
The U.S. has the biggest impact on the global economy and its monetary unit value, and fluctuation has the greatest effect relative to other currencies. The value affects company profits, budgeting and manufacturing costs. It has ramifications on capital investment, plant openings and closings. For example, some companies that have outsourced customer service and call centers to India have returned these centers to the U.S., since the weak dollar has eroded the cost benefits of operating overseas.
As you can see, International trade is detrimental to our domestic economy as it decreases the power of the dollar which in turn affects your ability to afford things at reasonable prices.
When factoring all this in to your dream of owning a home, Im sure you can see that asset purchases like a home can become out of reach for many.
The solution is for Americans to start consuming less and producing or rather innovating more.
Instead of spending $500 billion on developing an apocalyptic defense systems, money should be spend on providing access to education so we can 'create' value that others will have to depend on for sustenance thus creating jobs, strong industry, and a strong dollar.
Im sure you've been told what your grandfathers quarter could buy at the time…something to think about.
Good luck on your paper!
it is hard to say whether an economy is overheated or not. If everything is under control or under manageable growing situation, then that is not in an overheating regardless how fast it grows. the economy of nation is always under adjustment constantly for pursuing the best balanced growth. financial liberalization is only a kind of economic adjustment which depends on the economic situation and economic strategy of a nation's further development. it may generate more growth, but does not have to cause overheating…overheat is actually a bubble blowing process, on the other hand financial liberalization may be a part of regulatory reinforcement and openness…
@Jacobrester Lol, you sound real intelligent now. You’re the one that sounds the fool. My point of you being pointless is holding true
Keep it up loser!