Business Lyceum

e-Letter
Practical Instruction in the Arts and Sciences of Making Money


Editor/Publisher:  J.F. (Jim) Straw

JULY 2008

Greetings & Salutations:

The biggest questions on the minds of Americans today are, What is going to happen to our economy?"  "Will we have a depression?"  "How can I survive?"

It has been my opinion for the past 10 years that we are long overdue for a full scale economic depression.  But, it will be completely different from the depression predicted by my contemporaries.

We have already seen a stock market crash in 1987 bigger than the one that preceded the depression of the 1930s. c And, we have already had more bank and S&L failures (percentage wise) than back then, too.

The rate of bankruptcies has grown from tens of thousands to hundreds of thousands each year c now, over a million bankruptcies each year - with the biggest percentage of bankruptcies in the higher income brackets.

Employee lay-offs, plant closings, and business failures have increased exponentially over the past 5 years.  And, for the first time in our history, the unemployment rate among white-collar executives is higher (percentage wise) than among blue-collar workers.

All of these facts lead me to sincerely believe that ...

The Depression of the 1930s was a "Blue Collar" Depression

But ...

The Next Depression will be a "White Collar" Depression

Simply because ...

Our Economy Has Become Top Heavy


There are simply too many white-collar workers, bureaucrats, and unnecessary people doing unnecessary paper-shuffling busy work.  They consume far more than they are capable of producing. c These are the people who will be out of work, on the bread lines, during the next depression ... NOT the blue-collar workers.

As an illustration:  Before I had money enough to pay someone to sweep the floors, I did it myself (still do; on occasion). c That is the essence of the difference between the White Collar workers of the 1930s and those of today.

Because there were few business schools before the depression of the 1930s, the vast majority of White Collar workers came up through the Blue Collar ranks.  Then, when the economy got tough, Blue Collar workers were let-go and the White Collar workers stepped from behind their desks and filled those jobs.  After all, they were the most experienced and best qualified to hold those productive jobs.

Today, the vast majority of White Collar workers are schooled in the arts and sciences of business.  They have studied management, economics, political      science, marketing, production, contract negotiation, and employee supervision.  But, they have never done the jobs they manage and supervise.

It is one thing to tell an employee, "this needs to be milled another one-thousandth of an inch," and quite another to say, "here, let me show you how to mill this to specifications" (and do it).

As the next depression deepens, it will become necessary (as it was in the 1930s) for businesses to "chop heads" to reduce overhead costs.  This time, however, it will be White Collar heads that roll because they are the least experienced and the poorest qualified to "produce" the many goods and services required by our society.

Contrary to the allegations made by a Japanese official, the Blue Collar workers in the U.S. are not lazy and ignorant.  They are the victims of the emotional rhetoric of the lazy and ignorant "book learned" White Collar segment of our society.  When the Blue Collar workers find that their knee-jerk reactions to that emotional rhetoric has been overcome by reality, they will return to  producing more than they consume.

Lest you begin to condemn me as a book burner, consider this ... a Blue Collar worker, upon entering the White Collar world, will by necessity read books in order to learn about doing the things he/she does not know how to do.  On the other hand, a "book learned" White Collar worker will rarely, if ever, go out on the shop floor and learn how to do the jobs being directed. c My point is that "book learning" is an absolute necessity, it has, however, become an end unto  itself.  Therefore, I do not condemn book learning, I simply consider it to be a "starting place" not an "ending place."

Blue-collar workers may be laid-off; the plants they work-for may be closed c but c they will find work because they have historically produced more than they have consumed.  They will take jobs at lower wages, without many of the now customary benefits, in order to produce the goods and provide the services needed.  And, because of the reduced costs to produce those goods and services, the prices will fall proportionately.

Businesses that will survive and prosper during the next depression will be those businesses that eliminate top-heavy management positions (its already happening) and reduce their debt to a minimum (also happening).

Why? c Because, contrary to the economic manipulators in our government ...

You Cannot "Borrow" Your Way Out Of Debt


Even if the "prime rate" goes to 2%, blue-collar workers won t be borrowing.  Neither will wise and prudent businesses.  The only people vying for those low-interest loans will be the out-of-work white-collar segment of our society c trying to borrow their way out of debt.

Blue-collar workers will -- as they have historically -- only "borrow" for purchases of major necessities.  Instead of spending their hard earned dollars on frills & fancies, they will save their money for that proverbial rainy day.

Beyond that, during the next depression, there will be ...

No Major Banking Collapse


Why? c Because the banks in this country have already been frightened into tightening their belts. c Go to your local bank and count the number of empty desks in the area where the junior vice-presidents used to be. c And, with more low-cost blue-collar savings money coming into their hands, they are shoring-up their shaky liquidity and reserves c PLUS c with the relaxation of some of the more outdated banking regulations, the banks are now in a position to put their depositors monies in higher yielding equity positions.

Because of that, during the next depression, there will be ...

No Stock Market Crash


In 1987 c when the stock market did crash c most of the trading activity was in the hands of individual investors.  Today, most of the trading is in the hands of professional traders ... managed accounts, mutual funds, institutional investors ... with less liklihood of the major sell-offs that cause market crashes.

But, during the next depression, there will be ...

Major Insurance Company Failures


From the F.D.I.C., on down, you can expect Insurance Company after Insurance Company to fail.

Why? c Because the biggest buyers of insurance are the white-collar segments of our society (individual & corporate).  They have, for too many years, been laying-off their major liabilities to insurance underwriters. c As this white-collar segment loses jobs and default on their insurance premium payments, more and more insurance companies will suffer a cash crunch.

When that happens, insurance claims that have usually been paid from current premiums collected, will have to be paid from reserves.  Then, when the reserves are gone, it will be time to start dipping into assets ... selling at pennies on the dollar in order to meet claims payments.

Of course, as the insurance companies fail, there will be more white-collar unemployed.  That will only deepen the white-collar depression.

So ... to survive and prosper during the next depression ...

Start Thinking Blue Collar


Put aside some money in a savings account with a smaller, local area bank. c Stay away from regional or statewide banks.  Preferrable is a State chartered bank instead of a National bank and c if you can find one c a bank that is NOT F.D.I.C. insured.  You won t make a bundle in interest, but your savings will be safer.

Quit borrowing money, or buying on credit, except for major necessities.  Even if the prime rates goes to 2%, stay away from unnecessary credit.

Invest in the stock market. c Buy stock in companies that produce goods or provide needed services.  Put some money in a managed account or mutual fund and learn to trade stock profitably for your own portfolio.

Send your kids to Trade School instead of College.  Let them learn welding instead of economics.  They will have jobs when the economists are in the bread lines.

Those who produce more than they consume will survive and prosper.


Those who consume more than they produce will suffer the fate of the proverbial grasshopper ... and ... the hardest hit will be government employees at all levels c city, county, state and federal. c It couldn t happen to a more deserving bunch of economic parasites.

The "economic parasites" to whom I refer are ... holders of positions in redundant and outdated government agencies, bureaus, and commissions; some of which have survived since the early 1900s without any useful purpose today ... redundant government employees; unnecessary people who are employed for the sole purpose of maintaining the use of budgeted funds (then can t be fired without an act of God) ... and those persons who perpetuate those unnecessary, outdated and redundant offices and jobs.

I know.  I know.  What I am saying goes against everything my contemporaries are preaching ... and ... I know I m going to catch thunder from some of them c BUT  ...

Hide & Watch!



Now, let's do some ...

Questions & Answers, Comments & Other Good Stuff
from my readers!


David Breth
was wondering ...

"Since you have been testing for over 50 years has there been any products / services you promoted, time and again, with little or no results and then after test, after test, it was selling like hot cake and, if so, any which stop almost as fast as they started?"

David ...

Over the years, there have been countless instances where constant testing resulted in massive sales - and - there have been almost as many instances where; after a great deal of testing, the product or service has been abandoned.

Yes ... some have stopped as fast as they started - but - since there was a good response, further  testing brought them back to life.

By the way, Gang ...

David also has a FREEBIE report for you ... "How To Get an Extra $300 (or  more) Per Month and Building Credentials just by SharingWhat You KnowWith Others."

Go  get your free copy at:  http://www.davidbreth.com/money-for-teaching


Prosper from your talents t more than you ever imagined!

Are you knocking yourself out trading "time for dollars"?
Wondering how to make it big online without all the gimmicks?
Ever imagine getting paid your weight in gold?
Real support and FREE resources available. to get you going.
Start changing your life-- today!

Prosperity


Mike DiBiano says ...

"I am so glad to see there are a few of us old masters left, And still "working" at the art we love. -- Although I retired to south Florida years ago as millionaire ( I am 69 now) to live the good life, I still like to make a extra few grand a week( or a day) the "easy part time way" in mail order to keep me sharp. So if any of your readers would like to see some of my current projects.( and make some old fashion EZ mailorder cash themselves.) Just send me a SASE and ask for my "easy part time way"  to: Mike DiBiano, 810 Saturn St. #16, Jupiter, FL 33477"

Okay, Gang ...

Mike is an ol'timer in the direct marketing game ... I've known him longer than I like to remember -- SO ...

Send him a SASE (Self-Addressed Stamped Envelope) and he'll send you all his current good stuff.

Could be worth a fortune to you.


Christopher Flores wants you to know ...

"Your reader's need  to know that there is a way to protect themselves from Identity Thief."

Go check it out for your own self at:

IDProtection



Thomas Lomax wanted me to tell you...

"I'm writing you today about an ebook I've written and already started marketing. -- It's different than what you normally offer your readers, but I thought of you anyway because it's main focus is to help people set clear and specific goals, and then achieve those goals with the aid of a unique kind of *self-talk*. -- I know you like no-nonsense, practical stuff, and, I think my ebook qualifies. It's different; it makes abstract and metaphysical concepts much more concrete. -- If it peaks your interest, let me know and I will send you a copy of the report to look at. -- If you truly like it, and believe it would offer a real value to your readers, please recommend it to them."

Thomas ...

After reading it, I do believe it would have value for many of  them -- SO ...

I recommend they go take a look at:  Affirmations



Whatever else you do this month, take some time and read ALL of  this offer.

http://www.BillionsInMinutes.com



Ugur Akinci
needed to know ...

" Just curious -- which method are you using to cloak your ClickBank affiliation code in the URL link?"

Ugur ...

I use an htaccess redirect.

You can learn how to do it at:  http://httpd.apache.org/docs/1.3/howto/htaccess.html



Jeff Perelka asked me to ...

"Would you be willing to send out our blog to see if people would be able to help us?"

Jeff ...

Hope they can help.

http://5in30.blogspot.com



Ancient Babylonian Money-Making Secret
(still used by multi-national companies and saavy entrepreneurs)
Allows anyone to create Great Wealth out of  Nothing ... regardless of your  age, nationality, qualifications or sex.

http://www.realjvcash.com/special/


Reco Davis wanted me to tell you ...

"I'm still making a business out of providing merchant accounts.  If you don't mind, please tell your readers that I'm offering retail rates of 1.59% and online and telephone order / mail order rates of 1.99%.  Heck, I'll even throw in a free credit card processing machine."

Okay, Gang ...

If you need a merchant account, ASK Reco for all the skinny.


Ron Coble wanted me to share this with you ...

"Please feel free to publish this in your next or future edition if you think it might be of interest to your readers. -- Here is the question I get asked several times each week:  Does your book (whatever subject) tell me everything I need to do to set up my business, register it, etc..? -- Generally, I tell them (about your books and others) - you are purchasing "specialized" and highly targeted business information, what you are talking about is something that no one book could begin to cover.  Why? Because each state has numerous counties or other jurisdictions (or fiefdoms as I like to call them) that have their own little sets of rules and regulations regarding businesses, so, considering these books are sold worldwide, there simply is no way to really address each of the areas where a customer might live."

Thank you, Ron.


Jack Donner asked ...

"What is International Forfaiting, please?"

Jack ...

You will find a brief definition at: http://en.wikipedia.org/wiki/Forfaiting


Scot Standke has something you might enjoy ...

"I run a free marketing interview website your readers might enjoy."

Okay, Gang ...

Go see it.  Looks like a great free resource for you.

http://www.monthlyinterviews.com


Rudy Spivey has an opportunity for you ...

"A new wireless.com is launching July 18, 2008 ... It will change the networking world forever. -- To learn more about this fantastic once-in--a-lifetime opportunity being presented to you, please visit our website now.  Join now and become a founding member while we are in Pre-Launch ... until July 18, 2008 ... when it becomes a reality."

Okay, Gang ...

If'n you're interested, check it out at:

http://airtalk.mywirelessnews.com


Frank Critelli has a new resource for you ...

"I am working with a company that is the largest online directory for the wholesale industry and the neat thing about it is any business that deals in closeouts or wholesale merchandise can get a free listing without any membership fees or pay per click fees by clicking on the icon provided on the site."

Okay, Gang ...

If'n your interested in this one, contact Frank.



Well ... that's it for this month. -- In order to make every issue responsive to YOUR needs, please send me your questions; or tell me what sources or resources you need to build your business; or give me any thoughts you want to share with your fellow members.

Believe it or don't ... I ain t a mind-reader. -- If n you doesn't tell me what you need, I may never touch upon the information, sources or resources you need.

This is your publication for you to use to your benefit ... I am just your moderator.

 Until next month, keep well ...

J.F. (Jim) STRAW
Grande Panjandrum


Thought For The Month!

"Dishonest money dwindles away, but he who gathers money little by little makes it grow." -- Proverbs 13:11


Can you stump the old master? -- Betcha can't!

Over the past 50 years (man and boy), I have made bundles of money in direct selling, service contracting, wholesale merchandising, entertainment (I was a professional Trumpet player, vocalist & Radio Announcer), freight forwarding, import/export, retail merchandising, warehousing, real estate, electronics manufacturing, finder's fees, closeout merchandising, financial brokerage, business consulting, steel fabrication, gold and coal mining, offshore banking, mailorder, writing, and publishing. -- That being the case ...

No matter what business you're in ... whether you're just starting, well on your way, or at the top of the heap ... I've probably been where you are, done what you are doing. -- So ...

Anytime you have a question about 'how' to do something in your business - or - if you have any comments about anything I've said in issues of this e-Letter; or if you want to add your 2 cents worth ... just "ask" me or "tell" me.

Send your Questions, Comments or 2 Cents Worth to ...

with "Question" - "Comment" - or, "2 Cents Worth" in the SUBJECT.

If I, personally, don't have an answer to any question you may ask, I will contact some of the professionals in your field of endeavor (I will probably know one or more personally) to get the real 'skinny' for you.

Note: If you want to ask a question anonymously just tell me so when you send in the question. -- Nobody but you and I will know who asked the question.


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