Jamie Dimon's Blunt Warning Should Spur You on To Build A Sustainable Business

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You may well be saying, who the heck is Jamie Dimon. Jamie Dimon, is the CEO of JP Morgan Chase,

He isn't sugarcoating the problems facing the world in his annual letter to shareholders. The global landscape is full of challenges, from the war in Ukraine to a polarized political climate in the US. Dimon sees these as fundamental threats to the established order, and his letter reads like a call to action.

Key Takeaways

Keep A Perspective

“If you read the newspaper from virtually any day of any year since World War II,” Dimon writes, “there is abundant coverage on wars — hot and cold — inflation, recession, polarized politics, terrorist attacks, migration and starvation. As appalling as these events have been, the world was generally on a path to becoming stronger and safer.”

Some of us here have been around since the Second World War, we lived through the war, the aftermath, the cold war the space race, the list goes on. It is so easy to get caught up in Negativity and fear. Well it is for most people, its tough for me to do that I live without a TV and news, and that makes life a lot simpler.

Just over a hundred years the great war came to an end. Then Spanish flu, AKA bird flu wiped out tens of millions of people. It made covid look like a mild cold. Somehow the World survived. The Second World war was inevitable because the Treaty of Versailles set the scene for another inevitable conflict.

Still war is always profitable and the last Century has been just about the most profitable one ever, and this one is set to break the records of the twentieth Century.

Long term Challenges for the West.

The biggest challenge in Dimon's mind is long term inflation. Just a hundred years ago the great depression began. one of the side effects of this was that the government's initial response to the economic downturn was limited, with many policymakers believing that the economy would self-correct.

The USA is facing similar challenges at the moment. Dimon's plea for governmental competence falls on deaf ears. Biden's plan to (again) cancel student loan debt is a perfect example. Canceling debt won't fix the issue of out-of-control college costs and questionable degrees. The move erodes trust in government and worsens the US financial position.

Dimon believes the US-led global system is under attack. Between massive deficits, a waning dollar, and geopolitical tensions, a major reset of the international order could happen. Bretton Woods was the economic order set up after WW2 and that may need a reset.

The US government are constantly looking at short term results and losing site of the long term. In his analysis, Jamie Dimon argues that focusing solely on short-term inflation data misses the larger issue at hand. While monthly and yearly inflation figures may fluctuate significantly, it's crucial to take a broader view. By examining the overall economic landscape, Dimon points out that there are compelling indicators suggesting that inflation will persist in the long run. He emphasizes the importance of looking beyond temporary variations and considering the fundamental factors that contribute to sustained inflationary pressures. According to Dimon, a comprehensive assessment of the economic situation reveals a strong case for anticipating higher inflation rates in the coming years

In his analysis, Jamie Dimon openly puts forth several recommendations, many of which have been previously discussed. He addresses topics such as strengthening border security, simplifying and rationalizing regulations, and implementing economic policies that prioritize growth and development.

However, Dimon expresses concern about the prevailing perception of the business community in the United States. He notes, "Unfortunately, the message America hears is that the federal government does not value business — that business is the problem and not part of the solution." This statement suggests that there is a disconnect between the government's rhetoric and actions, leading to a sentiment that the private sector is viewed as an obstacle rather than a key contributor to the nation's progress. Dimon implies that this negative perception of business could hinder effective collaboration and impede the implementation of policies that foster economic growth.

Why Am I Rabbiting on about this.

Dimon's letter is a sobering reminder of the risks facing us. It reinforces the idea that having a Plan B – whether that means diversifying your assets, gaining skills to survive disruption, or considering an alternative place to live – is more important than ever.

Everyone here can have a plan B . All premium members can build a long term sustainable business. Now is not the time to be reactive, you still have time to be proactive.

For anyone interested the complete letter is here



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Recent Comments

50

When you are earning only $1 over your monthly expenses, you are then financially free.

Live frugally.

Thats all it takes, live frugally is a great motto.

Steve

my solution is to make sure I earn more. I dont want to settle for financial freedom I want to thrive not survive

Agree , some of the richest people live frugally like Warren Buffet and many more who spend little and make a lot.
Opposite to what society tells us to do.
Steve

Hi Catherine, I stay out of politics. I have no interest in being involved with it. It's an interesting read. I don't care about it. However, I do banking with Chase and have a business and personal account with them and a few credit cards. JP Chase is a significant financial product company. I appreciate them better than Bank of America (BOA). He is not the only one to kvetch about the political system; it's been corrupted for years. Catherine, don't get me started, I will go on a rant here so I best keep my typing fingers to myself and not say anything more now.

i agree with everything that you say, including I pay more attention to it as a bank than most in the US. I also agree with ABSOLUTELY everything you didn't say in your rant. Jeff does too

Thanks! 😀

We have both got better things to do that will be much more productive than ranting. However, if the urge gets the better of you, feel free.

Not now, though. I need to stay seriously focused on my productivity.

Great advice for everyone there. Being more productive

Hi Catherine

It definitely merits serious consideration.

We meet with our private bank division every three months to review our financial assets, which are well diversified into real estate, IRAs, mutual funds, CDs, annuities, and government treasuries.

It’s important to let professionals like bankers, financial advisers, and accountants help make the best decisions along the way.

Frank 🎸

I totally agree with you there Frank. I used to pay my accountant a flat fee, ten percent of the figure he saved me paying tax on. Unbelievably many self employed people told me I was being done. I did pay about more than anyone else I knew but saved much more

Lol, smart movie, Catherine! 👍👍😎

Frank 🎸

I recognize the need for taxes, but every cent I can legally get out of I will

Lol 😎

Thank you for this invaluable information Catherine! I believe, in the core of my being, that we are in for increasingly harder times. I have felt an urgency, for quite some time, to build a side business that will become a full -time business. This article validates that I need to "soldier on" to build a strong business through WA!

Nancy I love you and the way you have embraced this challenge. Well done

You are absolutely right, Catherine!

I hope that we all survive!

Jeff

Well, those of us that are proactive have a better chance. Self employment has always been the answer. Hope you are having a great day

Self employment has served me well for over 30 years, Catherine! I totally agree!

Jeff

it has always been my life, which at times has been scary, and at times I have had more money than I know what to do with, but I wouldn't change a day of it. It has always been exciting, if at times existing by the seat of my pants exiting

I know what you mean, Catherine! I used to make a lot of good money early on, but not so much right now, but that is also okay too!

Jeff

I am not creating half as many funnels as I used to, but as you say that is ok too

Very true, indeed, Catherine!

Jeff

I put it down to age!

Perhaps, Catherine, but maybe not!

You are correct Jeff, it is a combination of things, the important thing is I am happy where I am now

That is the most important aspect, Catherine!

Jeff

It is indeed, and when I am no longer happy then I can change my approach.

Very true, Catherine!

Jeff

I know what you mean, Catherine!

Jeff

We can only do what we can on a daily basis

Very true, indeed, Catherine!

Jeff

Scary, interesting

And exciting too

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