The world is stuck! We have not returned to the economic growth levels seen before the great financial crisis of 2008. Interest rates are lower than ever, which means money is tight. Employment participation rates are at their lowest ever. In many cases, unemployment is at its highest.
The corporate media headlines talk of money printing and easy money. They are either lying or demonstrating their ignorance. The best interpretation is not to assume malice when ignorance is possible. Let’s assume that the media is ignorant. Despite the tremendous growth in Wall Street, Main Street is stagnant. Companies would instead borrow money to buy back their shares than invest in bricks and mortar. This demonstrates that liquidity concerns are serious, and there is little tolerance for taking risks.
The media will tell you about the impending inflation tsunami that is coming. At play are far more complex structural deflationary pressures that lurk in the shadow monetary system of the Eurodollar. The back streets of the Eurodollar system are hard to navigate even for its streetwise inhabitants. Yet, the implications of collateral shortage and inter-bank machinations are far-reaching into the world’s economies.
Add on top of these factors a global pandemic that has seen lockdowns in economies, and we have a toxic recipe.
If you feel stuck, you are not alone. Don’t let the complexity of the world’s financial systems prevent you from taking straightforward steps to re-orientate your life.
Apply STOP logic. It works in a moment of crisis and the re-evaluation of your life.
- S — STOP. Stop and stand still for a moment. Don’t be tempted to blunder on thinking that more of the same will produce a different result. Stopping allows everything that is going on around you to settle.
- T — Take a breath. Your brain might be short of oxygen. You might not be interpreting your world as best you can. It is also about reframing and looking at things from a different perspective.
- O — Open your eyes and orientate yourself. You might not be seeing the most prominent details that are right in front of you. Examine your assumptions and give yourself permission to look for what is hidden in the detail.
- P — Proceed. Gentle, small steps. Apply caution. Speed up gradually.
STOP logic may appear trite, but it has saved many a disaster. There are so many things that are out of our control. What is in your control is how you respond. STOP logic gives you the power to take back some control.
Justin Spencer-Young Twitter: @fastforwardjsy