The Economic TsunamiI have done a lot of speaking around the world recently on the recession and how this is FANTASTIC for our industry [Network Marketing]. It has created a 'once in a generation' opportunity for everyone and I know that everyone is very excited. I have also found that many people struggle to appreciate the power of this situation because, quite frankly, the economic downturn does not seem to have reached them. Sure, the news seems terrible yet they are not experiencing any major change in their world. For all the talk of concern, that's all it seems 'concern'. I have even met people who don't think it is actually going to reach their small part of the world. This is because they don't appreciate how global recessions develop. The best metaphor for what is happening I can think of is a Tsunami - the greatest and most destructive of waves. Like a Tsunami, what happens in the really ugly globally driven recessions [depressions], is that there is first a massive economic 'earthquake' in the key financial centres. 8.0 on the Richter scale. Melt-down in places like London, New York and Tokyo. Stock markets collapse. Huge seemingly safe institutions such as banks and insurance companies go bust. Currencies go crazy. Governments panic. The public watch with awe, yet few actually feel the impact. From the earthquake centre, the shake is next felt by the major international companies as their financial foundations are shattered. They scramble to take action to survive. They slash their investment plans and announce their [first] massive redundancies. We are currently seeing this. Every day another huge company announces 10,000s of layoffs and factory closures. The public looks on in concern yet still the impact is not actually felt. Eventually those big company redundancies, financial changes and disaster action roll out into economies. The suppliers to the suppliers to the suppliers of the big companies and their employees see their business slow down dramatically. It doesn't take a major drop in spending to cause a disaster to the small/medium sized companies AND this is where the bulk of people are employed and thus unemployment rockets. Within a year or so, taxation revenues drop so government, local and nationally, must start laying people off. The Tsunami is unemployment. Unemployment is the real killer in economies, not a drop in house prices or stock markets. Now many of the wider public suffer. From 'Earthquake to Tsunami' takes a couple of years. The 'earthquake' happened in 2007-8. The next wave is happening now. The Tsunami is expected later this year and next year. Its impact is expected to last for years. In previous recessions, confidence has been shattered for five or more years. If you appreciate this widely accepted flow of events, you will take action NOW and talk to everyone about your opportunity KNOWING that it may take time for many people to react. Think strategically and you will position yourself ahead of the wave. Position yourself for success. Ed Ludbrook . |