In addition, some interesting predictions for 2012 have been made: such as what will be the price of gold on December 31, 2012; or who will win the White House this year; or what wild, Black Swan events are likely to hit us this year?
Other events that are more like Black Swans, include the blocking of the Internet and mobile networks by governments and the issuance of debt, by the U.S. in a foreign currency. Did you know that you can obtain American Express Travelers Cheques not only in U.S. Dollars but also in 6 other currencies including RMB, the Chinese currency?
Even with these predictions and mathematical certainties, here are 8 truths for 2012 you must know as entrepreneur. When change like this starts to occur, it starts slow then accelerates quickly, like an upside down hockey stick. By knowing about these changes, you can be prepared to not only survive any resulting crisis but as an entrepreneur, be in a position to thrive.
Here are the 8 truths for 2012.
1) Public and private debts included, most western nations are insolvent.
2) History shows that economic growth in such an environment is nearly impossible when such a large percentage of GDP must be allocated solely to interest. Most countries in this position either default or [hyper]inflate. Both have catastrophic consequences.
3) Continued political and monetary intervention in the economy is counterproductive. From 'Cash for Clunkers' to negative real interest rates, such intervention only serves to make the problems, and their impacts, much worse.
4) The combined ingredients of sovereign insolvency; a global financial system based on worthless paper currency; and consumptive, import-oriented, public entitlement economies have created conditions for an epic, long-term economic depression.
5) Deteriorating economic conditions drive social unrest. There is an explicit correlation between government budget cuts and things like rising crime rates, riots, and even attempted revolution.
6) Faced with a marauding population that threatens their own survival, governments will stop at nothing to maintain the status quo: their power, our expense. Again, history shows that police states, boogeyman enemies, a total loss of privacy, capital controls, higher taxes, etc. will all become the norm.
7) None of these delay tactics can prevent human and financial capital from eventually migrating to where they are treated best. This will ultimately force a complete system reset by starving the beast.
8) This is not the first time this has happened and it won't be the last. This time is NOT different. Our modern society is not a unique, nor is it a special, snowflake that can ward off the consequences that have plagued empires for millennia.
The Roman Empire, for example, began its spectacular decline shortly after Augustus became de facto emperor in 27 BC. He was followed by a long series of dismal failures-- Tiberius, Caligula, Claudius, Nero, etc. But Rome muddled along for hundreds of years, wavering between growth and decay.
The changes were gradual. There was a little currency debasement here, a bit of excess spending there, and plenty of assassinations and foreign wars thrown in for good measure. Along the way, though, thinking people could see the writing on the wall... and many of Rome's citizens set sail for greener pastures.
The gradual changes became more and more pronounced. The more pronounced, the more people left. As Edward Gibbon recounts in his seminal work, The History of the Decline and Fall of the Roman Empire, the city of Rome lost nearly 75% of its population in the Empire's final 50-years in the 5th century.
History is full of other examples of once proud nations that, facing problems for decades (or even centuries), completely unwound in a matter of years. The Ottoman Empire. The Ming Dynasty. Feudal France. The Soviet Union.
Bottom line, when the real change comes, it comes very, very quickly.
Think about the pace of change these days. It's quickening. Europe is a great case study for this-- when concerns about Greece first surfaced, European leaders were able to contain the damage. There was disquiet, but it soon dissipated.
Fast forward to today. We can hardly go a single day without a major, market-rocking headline. And European politicians' attempts to assuage the damage have a useful half life that can be measured in days... sometimes hours now.
Like the Ottomans, the Soviets, the Romans before them, Western civilization is entering the phase where its rate of decline will start looking like that upside-down hockey stick.
2011 was a challenging year. 2012 will likely prove even more. But this isn't anything to dread. It's is an incredibly exciting time to be alive-- change should be embraced, not feared.
Empires always run their course. Bubbles burst. But creative, thinking human beings always survive and thrive.
Each of us has a finite amount of resources so this is where the greatest opportunity lies for entrepreneurs -- tapping into the shift in how you allocate those resources. For instance, you may be better off buying an ounce of gold over making a political campaign contribution.
A good entrepreneur will identify an unfilled need in the marketplace-- identify a problem that needs to be solved-- and create value by providing a solution. Any business that can consistently provide value for its customers will prosper in any economy, good or bad.
My own advice is for individuals to consider becoming an online entrepreneur. Many high profile business leaders, including the Oracle of Omaha, suggest that if you don’t focus on being an online entrepreneur, being self-employed, or being a small business owner, it will be a very tough road in the months and years ahead; actually they say, it will be an uphill battle.
This suggestion is attracting current and former doctors, CEOs, and other members of the corporate workforce that are seeking a way to leave their established and lucrative careers. They are in pursuit of new opportunities in the world of Internet Marketing so they can generate income, prestige, independence, and financial rewards that exceed the levels obtained by most in their previous careers.
This blog, and related posts, will continue to provide a blueprint for making money online with Internet Marketing. You will find step-by-step road maps for various parts of the Internet Marketing business. You will find tools, education, training, and support. And you will find a community of like minded entrepreneurs that are using the Internet to get out of debt, build wealth, and secure their financial future forever.
In addition, I want to thank Simon Black of Sovereign Man as he was the source of some of the material mentioned in this post.
In closing, be sure to Read More of my Posts at aspenIbiz blogspot, my Internet Marketing blog; Obtain Some Tips About Being No 1 on Google at aspenIbiz My Go-To-Market Partners website; and Learn How to be Savvy with Your Money Like the Insiders at aspenIbiz The Conspiracy For Your Money blog.
I Hope You Enjoy the Posts and I Trust You Will Find Them Insightful! Let me Know What You Think.
As this is the first post on this blog for the year, I would like to provide Best Wishes for a Prosperous New Year!
Be sure to share this post with anyone that you think would benefit from this message… thanks!