G7 The Benefits and Dangers of Coordinated Economy

Finance leaders from the G-7 met in Japan to discuss the global economy. Despite the slow down they have decided against coordinated actions to boost the global economy. There are a few good reasons for and against this decision. Coordination is not risk free and does carry a few dangers.

In a global world we should be able to coordinate our economies and prop up a slowing global market. The problem is that the economy runs its course as a large complex system that almost no one can control with any clarity. The more we artificially influence a system the higher the risk for potential backlash.

Consider companies that are protected against foreign competition for decades and then one day the country can no longer afford to protect them. The entire industry gets crushed by those who learned to adapt to the market. The same can be said for national economies.

Stimulus and market coordination can be beneficial in short-term situations but when relied on as a prime method of thwarting change risk begins to build up. The tidal wave of change can only be held back so long. If the global economy is going to improve then it must be a natural change.

Governments can make a difference. Instead of coordinated activities it is possible to create treaties and market infrastructure that makes it easier for economies to become more efficient by adjusting to each other easier. They can make it easier for nations to transfer materials and goods so efficiency raises prosperity across the board.

The Difference Between Good and Bad Managers

Not all managers are good and not all are bad. Most fall somewhere in between. By having some way of understanding the differences between good and bad managers you can gauge your own. The ability to get tasks done is different than the people skills that managers need to succeed. The difference between good and bad....

Good:

Listens to employees needs

Motivates employees to perform at their best

Achieves agendas by drawing in talent

Spends the time to understanding their employees

Can develop personal relationships

Emotionally intelligent

Skillful in their work

Creates confidence

Short and long-term plan

Allows others to manager their own affairs.

Bad:

Doesn't really listen

Focused on their agenda without motivating others

Has a hard time interacting with others

People don't have confidence in their abilities

Seems to be self-focused

Emotionally closed and explosive when angry

Short-term strategies without a long-term plan

Lacks team building skills

Lacks skill and blames others

Micromanages

Tips to Detox Your Brain

You may have heard of detoxing your body by eating the right kinds of food but not of detoxing your brain. Detoxing your brain can improve your outlook on life and renew your focus on your job. A cluttered head with lots of useless toxic thoughts won't give us the best performance.

1.) Find something you enjoy that relaxes you.

Sometimes we move through our working careers and don't take time to find things that we truly enjoy. It is beneficial to find work-life balance so that we can enjoy work and and not be plagued by regret and a negative gnawing feeling that we are neglecting something.

2.) Can you lose yourself in the flow.

Those activities that are the best are the ones that help you get into the flow and forget where you are or how much time you spent on the activity. For some it might be painting while for others it could be sports. It allows you to truly just be in the moment and process your thoughts.

3.) You can connect with yourself.

Not all activities allow you to connect with yourself, your needs, and feelings. It is important to create a healthy mind be being yourself and understanding yourself. Find those activities that allow your brain to slow down and feel at peace.

Are Pension Funds in Need of New Leadership?

The Central States Pension Fund that 1,500 employers contributed to and 407,000 people rely on will likely be reduced to almost nothing. Projections are that it will be out of money in 10 years and there is no viable plan to save it. Employees are receiving this bad news now, have no way out, and the problems were present for years. Are our pension funds in need of new leadership?

Sure....managers can claim "they didn't know" but it is their job to know, managed and project possible scenarios. If they were not doing this then they were not doing their jobs and should be questioned.

Personally I love pension funds because in theory they guarantee we take care of the elderly when they can no longer can work. The problem is that other people love pension funds as well and this opens them up to all types of ethical problems and poor decisions.

As Detroit pension fiasco showed us, pension funds are so attractive that they can become part of financial lining of a city and its politicians. Scrupulous people and unethical businesses got involved, paid bribes, and wasted employees retirement money. Some got caught and some walked....no one would dare to oppose them until the FBI stepped in.

Those that raised a protest were swiped away as trouble makers.

Central States Pension Fund might be a different case but is likely based on some of the very same poor decisions that caused similar funds to go bankrupt. It didn't just run out of money one day and short-sighted decisions must have been made along the path. The employees get thrown into poverty and the business and fund managers move onto other opportunities.

I'm a capitalist at heart but I believe that when a promise is made it should be kept. A tall order in today's world! The problem is that government can't be responsible for other people's decisions. There is a growing need for ethics and values in fund leadership. The way we have been doing it isn't working and we are now seeing fund after fund implode because of poor management.

Trans Pacific Trade Deal to Help or Harm Economy?

There has been a lot of debate over the Trans-Pacific Trade Deal and whether or not it will be helpful. Let me first say there is no clear answer as all trade deals have a give and take aspect as each country focuses on what they need. It can be said that those countries that engage in isolationist views typically don't do as well as those who willingly embrace
the market.

Consider that growing countries need access to investment capital, cheaper resources, and cutting edge technologies to succeed then creating trade deals that feed American companies with what they need will make a big difference. At least in theory, but in real life it gets more complicated as local companies must be ready to compete and city governments must have the policies enacted that help businesses grow.

The problem is that some American companies have some internal work to do before they can maximize their opportunities under new treaties. They will succeed and grow if they can get their products to the market and they will fail if foreign companies have better offerings at a better price point.

The treaty really isn't the issue. The issue is our current capabilities in terms of business and governance that will determine if this treaty will allow for maximum benefits that draws opportunities to the country or if our failure to compete will cause resources to move overseas. If we are afraid then we should get moving and start putting the American spirit to work. Treaty or no treaty we cant keep away the invisible hand of the free market forever.