May 2008

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There are a lot of business books out there that talk about how large companies neglect to adapt while the world that made them big changes around them. Change in our world is inevitable, and it’s up to people to adapt to it to survive. I am always amazed at how little companies rapidly get large because of their ability to change with the world around them. I highly recommend anyone thinking about entrepreneurship to read the book “If it ain’t broke, break it!”.

This week I am making a change in my life that some people would think I was crazy to do. In fact, I know MOST people would think it “unwise”. The fact of the matter is that the world is changing around me and I have been doing nothing but watching and resisting. Much like the big companies who fail to make necessary changes with their customers needs and end up bankrupt, that is where I felt I was headed. This pudgandplum blog was built to help me understand the world of blogging better and to help me change and grow a little more with technology. The next step for me has come to now focus harder on the website portion. I have been in companies that done changes that have negatively affected the lives of those around them. I see a storm ahead for the company I work for and count my blessings that there are clear warning signs that give me just enough time to protect myself and get out of the way of the turmoil.

I believe that the news we see and hear everyday are also giving warning signs of the years to come. There is a great possibility that our nation will have very hard times ahead economically, and people are ignoring the warnings. It’s like being told you’re standing in a building that will fall in an hour and even though you can see and hear the cracks forming in the walls, you stay to say that it’s not your problem, someone else better stop it from collapsing because your not leaving for safety because it’s not convenient right now. In the end, you will fall with the building around you. At that point you can try to blame everyone around you, but the fact will remain you ignored the warning.

If you are in a job that has bosses above you who have the ability to lay you off, you need to protect yourself. Find a second source of income that can sustain you if you lose your job. Don’t be foolish to think that you are indispensable. Everyone can be replaced, yes, everyone…  As much as people think they are too precious, they’re not. If the company gets sold or closes it’s doors, it then doesn’t really matter how valuable you “thought” you were.

Look at what’s going on around you. See change for what it is. Ask yourself how can you make lives easier for people, or is there a problem you are noticing that a product you create could make it easier for others in their everyday lives? Look at your company from the inside out and ask yourself what could be done better, or what is the company missing that you could do on your own? Open your eyes, then open your mind.

I remember reading somewhere that everyone has a million dollar idea, but most will never know it, or have the guts to implement it. Starting today, I will start working hard on what I think is my million dollar idea. Will you start on yours?

This is an odd sign. Big news today is that the dollar has gained some strength. Typically, this usually means that Gold prices should start to drop hard. For today this is not the case. What could this mean? My opinion is that commodities in general have a ton of momentum, so much so that even the standard norms which should have a affect on bringing prices down can stop the upswing in price. What this also means is that inflation trends have started gaining a lot of upward momentum and it will take a lot more work to slow it down.

As much as I like Gold and Silver as investments, knowing what outside forces have an affect on the price but are not holding to the trend greatly concerns me. Hopefully it just means that someone out there (with a lot of money) is buying while the going is good (meaning that the prices are still cheap) and that’s causing the increase. I like seeing Gold prices increase, but only because I have most of my investment in it. I don’t like what drives the prices of Gold though, because it means that our nations dollar is weakening and so is our economy overall.

In the end, all any of us can do is take advantage of what we hope is another cycle for any investment that might be at t low point. GREAT real estate deals are all over the place now. Learn to negotiate and buy property at great prices, and you’ll be able to stay ahead of the economic problems most Americans are facing today.

Have a great Memorial Day weekend, and take time to learn about what’s going on around you!

Have you heard about the radio stations that have free gas offers here and there throughout the US? I listened to a lady say she went at 2am in the morning to wait for 10 gallons of free gas. She will wait for about 10 hours in her car to get her free gas. Is it really that worth it? KNX would have done better to do a promo show that gave $40 gas gift cards in my opinion, but that’s probably why they don’t ask me.

Gas prices will still continue to rise at least for the next few days, if not weeks. I gotta think that there has to be better ways for Americans to beat this problem. Gas is so high right now that even food is being used to create fuels and doing a double whammy on all of us with regards to food prices.

I saw that Gold and Silver prices are also once again taking off this week. Our government broadcasted a shortage on gas supplies and President Bush’s recent trip to Saudi Arabia to try to bring the price of oil down was unsuccessful. It at least shows that he is trying to address the issue, but most analyst knew it wouldn’t help. The fact of the matter is that we need address our dying dollar. That is the core problem to everything we experience. Address the dollar issue, our other problems will fix themselves. It may take a few years for the ship to turn, but we need to start the turn.

The same goes with our lives. If we are living paycheck to paycheck, we need to start a turn to head in a different direction. It may take a bit for the affects to be seen, but know it will be well worth it. I think of it like dieting. It takes a lot of suffering in the beginning, but working the plan will help to get you back on track and the result will be well worth it.

It seems that the heat is on it’s way. Yesterday, here in California, it felt like mid-summer already. Temperatures have been about 100 degrees and moods seem to be flaring in correlation with the heat. Add a sprinkle of “high price stress” on top of it all, and you now have a population that is in need of anger management classes.

A new report today says that wholesale inflation rose very slowly, slower than expect. (yeah right) The government tweaked the numbers so bad, it wasn’t even worth really publishing.

Gold is back on the rise, but oil will soon peak and interest rates will have to go back up. This means that Gold may not maintain the strong price rise, but I am thinking it won’t go much lower all in all and a slow “continuous” rise is probable for the long term.

Inflation will be the biggest enemy of everyone’s wallet. (beside the cooling cost to beat the heat) BUT all in all, there is always a golden shining light at the end of the tunnel. Real estate prices continue to plummet, and this gives many opportunities for those who know how to play it.

Read up on things that gained a lot of popularity during depressions or recessions, and there is a lot of opportunity to get ahead. Think about it….

This week I had eye surgery done to remove some scar tissue that started to cover my pupil. One of the rules I had to follow was that I could not eat anything after midnight until the surgery was over. My surgery ended at about 2pm, so needless to say I was starving, but nauseous from the surgery and having a patch on my eye. At this point I was amazed at how easy we live our lives here in the US. When we are hungry, we eat. At anytime, we can go and get food practically anywhere. There are hundreds of thousands of people in Burma and China who are starving and can’t get to food right now due to natural disasters. Of course, there are those in other areas who never have food or clean water at their disposal either. So here I am complaining about feeling a little sick, and a sense of guilt overwhelms me. I guess I also end up getting a little worried about what I would do if I couldn’t afford to eat or had access to food. Scary.

With that being said, I have no words of wisdom other than to say, maybe each of us should really be aware and thankful of the blessings we have. (and it might not hurt to prepare in case we have not)

This is a good article on how any positive news about our economy could be just a mirage.

http://biz.yahoo.com/ap/080510/economic_mirage.html

I’ve been on a business sales trip again this past week. This time to Houston and drove out for a day to Austin. While meeting with clients, one thing I noticed was that all the business owners had other marketable skills that equaled, if not exceeded their current business, in other industries. It blew me away to see all of these VERY successful  entrepreneurs working on the side in things that were (in some cases) totally unrelated to their primary “bread and butter” businesses. On most occassions, these side ventures were definitely multi-million dollar ideas if marketed right.

The spirit of entrepreneurship is in their blood. It keeps them looking for opportunities to enhance their business, and sometimes better “new” ideas pop-up instead that seem logical to pursue. Many people know of the Post-it creator who was trying to create the ultimate adhesive and instead ended up marketing a super weak sticky stuff that makes itself removable on paper. Brilliant!

The lesson we all need to learn from this is that we all need to open our eyes and diversify our skills and knowledge better to create opportunity for ourselves. Never settle and be comfortable where you are or opportunity will pass you by. Think about what other things you have skills or interests in that could change the world completely for the better. If you don’t move on it first, someone else will.

A few days ago a new rally began for the stock market as our government reported that our economy actually grew by 0.6%, which was higher than expected. This has got to be one of the most common deceptions our government does to the american people to give us a false confidence about our nations true economic status. The report is a complete miscalculation since they didn’t seem to input the proper rate inflation. They say that the inflation rate entered to calculate the growth was not readjusted to the current inflation we as americans are really witnessing. Since gas prices and groceries have quickly become a hard to afford, it’s obvious to everyone that we are spending more for everyday living. There was a yahoo finance article that did a true estimate that stated we have actually taken a huge loss with regards to our economic growth and that the real estimates won’t be calculated till a week or so. The big questions is….will we see this new calculation?Our dollar has strengthened because of this news even though interest rates were recently cut. This has made the price of cold drop considerably, even though there are still many elements that should hold the price of gold steady or make it increase. I still hold firm that Gold will reach $1100 an ounce by the end of the year. We should see days ahead where Gold skyrockets in a vertical way.Keep an eye on the big news that come out daily. Unemployment, real estate, inflation,  and oil prices. Any negative news from these areas will push Gold back to where it balances out to support those who have holdings in this precious metal.