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

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Updated 3 weeks ago

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