El-Erian Talks Economy On Face The Nation

Mohamed El-Erian, Allianz Chief Economic Advisor, talked jobs and economy on Face The Nation. The Jobs report released last Friday indicated jobs stalled in October. The distortion in the report was caused by hurricanes and strikes but El-Erian mentioned “we have an economy that has been growing robustly, (and) inflation is coming down”. Adding “the main challenge for the next administration is “to continue to position it for the engine of tomorrow’s prosperity”. When asked when people will see grocery prices and the cost of housing come down El-Erian commented “it’s not going to happen”.

When the FED adjusted interest rates higher to fend off an over expanding economy, as they did beginning in 2022, the fallout was higher costs for goods and services for individuals and businesses. Americans are now seeing these higher costs at the cash register and in borrowing costs and rightly want to knnow when they will start to go down. As the process is reversed and the FED reduces interest rates, as it did in September, it has a tendency with some variance to drag inflation down along with it.

The danger for our national economy as El-Erian mentions is the national debt. The U.S. “debt to GDP is 120%”. For all us non-math folk that means for every $10 earned the U.S. borrows and spends $2 extra dollars or 20% more. That math just doesn’t math, and El-Erian went on to say the candidate that occupies the Whitehouse “like it or not are going to have to find a way to moderate deficits and debt”.

TECH TODAY

Find My Phone Apple is considering allowing users to us the “Find My” app on the iOS 18.2 developer beta as a new “Share Item Location” option. MacBook’s, iPhones, and other items with air tags will be able to use the feature to locate a missing device.

Perplexity AI The mantra from Web3 proponents the last couple of years has suggested that AI when developed would replace jobs. The strike by New York Times employees days before the election has Perplexity AI ready to become a scab and cross the picket line.

Throwing forks (and maybe knives too) Wordpress Vs WP Engine drama continues. Matt Mullenweg Co-Founder of Wordpress and CEO of Automaticc said that he’s not worried the drama between the two will cause a fork but said he would welcome it.

Google CEO says 25%+ of code is now generated by AI

HEADLINE NEWS 👀

Crypto Influence On 2024 Election

The Crypto industry had a significant impact on the 2024 election. Exerting financial influence, the industry poured $120 million into the election cycle in support of pro-Crypto candidates.

Former President Donald Trump, now President elect after winning the election, expressed strong support for Crypto currencies during his bid for a second Presidential term. And the Crypto industry through its support may have aide in his victory. The wins of other pro-Crypto candidates may have also been aided by this support.

With 50 million Americans owning some form of Crypto the Crypto industry’s involvement in the 2024 election may position it to potentially shape the future of U.S. financial regulation and more elections moving forward.

What’s In A Name

OpenAI parent of the ChatGPT chatbot confirmed it acquired the domain name chat.com The story is Dharmesh Shah Co-founder of HubSpot reportedly bought the domain last year for $10 million the highest reported price for a similar domain name.

Earlier this week Shah wrote on his blog the domain was no longer forwarding to OnStartUps and he had sold the domain to OpenAI.

Bernard Marcus Co-Founder of Home Depot Dead At 95

Bernard Marcus better known to his associates as Bernie revolutionized the home improvement do-it-yourself retail landscape when he co-founded Home Depot with partners in 1979. The retailer has a touching anthology in Remembering Bernie Marcus.

Crypto Soars On Prospect Of Trump Win

Bitcoin soared to an all time high exceeding $75,000. In recent months former President Trump has assumed a pro-crypto stance while on the campaign trail calling for a national Bitcoin stockpile and openly threatened to fire SEC chairman Gary Gensler who has remained anti-crypto on his first day in office if elected.

Will Bitcoin get to $100,000 before year end? That’s a question on investors minds but if Trump engages in Bitcoin friendly policies the price of Bitcoin can rise higher.

Boeing Resolves Strike With Union Workers

Boeing machinists voted on Monday to approve a contract offer that includes pay raises of 38% over four years plus ratification and production bonuses. The agreement to end the strike affecting approximately 33,000 International Association of Machinists of Aerospace Workers. The agreement clears the way Boeing to resume production of its best selling airliner.

The beleaguered aerospace company is estimated to have lost $10 billion during the seven weeks of the strike. The end of the strike allows Boeing to start generating some desperately needed cash.

CYBER SECURITY

Password Security For Business Survival

Password Armageddon is a real threat for business email, operating systems, and bank accounts. One innocuous oversight can put a business or finances at great risk.

We have all read stories about cyberattacks, ransomware, and bank account hacks at large companies and institutions but these threats are also real threats to a Small Business. Cyber crooks roam the internet daily phishing for ways to raid a company’s treasures. Take these steps to improve security and avoid unnecessary hassle.

There are simple steps to help secure lines of communication and financial transactions like enrolling in two part authentication. This can be a pain in the butt, you would know if you’ve already enrolled accounts in this security measure, but it could also save a business countless hours of time and precious financial resources and or cash.

Below are three simple password management processes to help secure password security in your business.

i. Implement a password manager preferably one with password encryption.

ii. Enable multi-factor authentication. A royal pain but it helps reduce risk of unauthorized access.

iii. Enforce strict password policies including the requirement to use of complex passwords.  

Business owners go to great lengths to grow and increase revenue but often do not take small steps to protect the castle and leave the front door open for crooks to enter. Lock down a simple to use password protection SOP for the health of the business and its employee.

SHORT, SHORT BUSINESS STORIES

Closed; growth at all cost (measure what matters).

THE GRIND FACTORY ⚙️ 

Family Office Capital

Family offices are known to be opaque entities seldom seen in the public domain and rarely heard about as a source of investment capital. For Small Businesses seeking investment capital Family Offices (“FO”) could be a viable source of private investment capital.

Shielded by a labyrinth of private entities masking investments FO’s can be difficult to find. FO experts agree the best way to attract an FO investment is to find a point of alignment with the industry that created the FO’s wealth and or companies they are known to have a substantial investment interest. Family Offices can be more flexible that banks, private equity, and venture capitalists. When pitching an FO it is recommended by insiders that the pitch is based on projections based on known metrics instead of pi in the sky dreams and aspirations.  

WEALTH FACTOR

“You Like To Think Big”?

Masayoshi Son, CEO of SoftBank has been known to think big and place big bets like in Uber, Nvidia, Alibaba, Door Dash, WeWork, and ByteDance (TikTok). Son said it will require “200 Million chips” to build out AI with a cumulative CAPEX cost of 💰$9 Trillion which he suggests is “reasonable”. Son concluded that $9 Trillion per annum will be generated with a 50% net profit and four new GAFA companies will have split the bulk of it taking in $1 Trillion in profits. Talk about a 🔥🔥🔥 chat❗️

PIC OF THE DAY

REAL ESTATE CORNER

In 2016 John’s warehouse rent was $0.43 per square foot on an industrial gross basis for a City of Commerce, CA warehouse. When the lease expired 5 years later in the early stages of Covid the new rent offered by the landlord was 288% more than his previous base rent. To pile on more reality to the inflationary affect of real estate prices the property had been sold and the rent was now offered on a net basis adding an additional $5,000/mo for property taxes.

With an offer in hand from a national retail tenant Alex’s landlord came to him and asked for twice the rent for his Mesa, AZ retail space as his lease was expiring. Alex’s furniture store was unable to afford the proposed rent and instead closed its doors.

These stories are not unique to millions of Small Business owners across the nation.

Small Businesses, like families across the country, have encountered an uphill battle fighting pressures that COVID presented. Add in to the COVID overflow an inflationary economy, and real estate markets where values inflated pre-COVID.

In addition, employee wages have risen in step with the increase in the cost of living, as have operating expenses such as fuel, energy, and insurance. These extra costs have taken there toll on millions of Small Businesses.

Commercial real estate professionals (disclosure I’m an entrepreneur formerly from this universe) suggest Small Business owners get ahead of an expiring lease. They suggest you begin the research for possible replacement space as early as one to two years before the lease expires. Things to consider:

i. Consult a real estate professional early in the process. Be forthright and let them know the business is looking at a possible relocation.

ii. Consider alternative cities or regions that might offer more affordability.

iii. Ask for a comprehensive survey of available properties in the areas of interest. Stay on top of the list on a regular basis. This is the fuel to propel negotiations.

iv. Have a structured conversation early with your landlord. Be prepared to discuss an early renewal, lease terms, and rent.

UNIQUELY INTERESTING

💡 Epiphany Moments

Daylight Savings Rescue: With the days now running shorter after the time change here are ways to stay fit, sharp, and sane.

1. Get out in the sunlight. Mornings will help regulate mood.

2. Get into a good sleep schedule. Sleep will help keep your body in sync.

3. Stay active. Boosts mood and energy.

4. Eat well. Eat a healthy diet.

5. Stay connected to friends and family.

6. Relax. Keep stress to a minimum.

7. Shelve electronic devices at least 30 minutes before bed.

8. Nest well. Create a cozy personal living space.

9. Light therapy. Void of natural sunlight use light therapy as a replacement.

10. Dial a friend, a family member, or a professional if help is needed. Don’t hesitate

 🍎 One Smart Apple

Bananaberry Strawberry Dairy

🍌 Bananas are berries, but Strawberries are not? Confused? Us too.🍓

Botanically speaking a banana is a berry fruit produced from a single flower with their seeds embedded in the fruits flesh. Technically speaking then bananas qualify as berries while strawberries do not. As long as it doesn’t mess up a good strawberry Sunday enhanced with dairy and chocolate do we really care 🤷‍♂️ 

 HEALTH & LONGEVITY

Natural Teeth Cleaning

Keeping the body free of chemicals is becoming more important the more we learn about the use of chemicals in food, body care, and hygiene products. Using holistic practices we can help prevent diseases these chemicalsare known to cause.

The Salvadora Persica Tree aka the “toothbrush tree” naturally makes a miswak stick. The end of the miswak stick is chewed bark free until bristles form. The bristles are then used gentle on the teeth and gums to brush the teeth. The brush can be washed and reused and the miswak sticks natural fibers help clean teeth and gums. Miswak has been used for centuries and is a known to have antibacterial properties. Alas, a toothbrush without chemicals.