Daily Archives: March 16, 2018

Three Cheers for Financial Repression

By Tom Streithorst – “Financial repression.” It sounds terrifying, right? It smacks of authoritarian bureaucrats sucking the life-blood out of hard-working, innovative makers and doers.

Umm, no. That’s not even close. It’s about bondholders. Economists started using the term in the 1970s when bondholders were losing money because inflation exceeded the interest rate.

These days, it’s market forces more than government policy that push real interest rates below zero. Whether you call it a savings glut or secular stagnation, our collective desire to save far exceeds our collective desire to invest. Savers want safe assets more than borrowers want to invest in productive capacity.

Don’t cry for the rentier class. For the past forty years (ever since Federal Reserve Chairman Paul Volcker manufactured a brutal recession in order to eliminate 1970s inflation) economic policymakers have concentrated on ensuring the profitability of the bond market more than just about anything else. They focused their attention on financial stability and low inflation rather than the traditional goal of promoting full employment.

Consequently, the financial sector has quadrupled in size relative to the rest of the economy, the rich absorb most of the benefits of growth, and workers’ real wages have stagnated or even declined. Financialization has made wealthholders richer than ever, but it hasn’t done much for the rest of us.

What is good for the bankers has not been good for the economy as a whole. more>

How to Win When You’re Under Attack in a Meeting

BOOK REVIEW

Just Listen, Author: Mark Goulston.

By Art Petty – For high-stakes topics involving strategy and investments, you’re in competition with others for attention and resources, and not everyone wants you to win. When faced with a direct or passive-aggressive attack on your ideas and character, your response speaks volumes about your maturity and leadership to everyone involved.

Learn to navigate meeting room confrontations with diplomacy, grace, and a good bit of psychology, and you will go far.

For all sorts of good reasons, we’re wired as humans to quickly recognize dangerous situations and respond accordingly. Our brains shift precious resources away from the slower, smaller processing center and trigger a flood of chemicals preparing us for fight or flight. Drunk with adrenaline, we’re apt to either lash out or look for the first exit, including shrinking and withdrawing.

Dr. Goulston suggests we run through a simple mantra that allows us to derail the amygdala hijack and maintain our presence of mind.

Your goal is to gain a few precious seconds and work your reboot process. more>

How To Improve Results With The Right Frequency Of Monitoring

By George Bradt – Most understand the need to follow up and monitor progress on a theoretical level. Yet there are few guidelines to how frequently you should do that. Let me suggest that varies by the nature of what you’re monitoring, ranging from daily or even more frequently for tasks to annually for strategic plans.

Ben Harkin discussed the value of monitoring and reporting in the Psychological Journal. His headline is “Frequently Monitoring Progress Toward Goals Increases Chance of Success” – especially if you make the results public. While he was more focused on personal habits and goals, the findings are applicable to organizational behavior as well.

Here’s my current best thinking on the right frequency of monitoring. The main discriminant is the nature of the work and level of people doing the work with tighter, more frequent monitoring of tactical efforts and looser, less frequent monitoring of more strategic efforts.

  • Daily or more frequently – Tasks
  • Weekly – Projects
  • Monthly – Programs
  • Quarterly – Business Reviews, adjustments
  • Annually – Strategic/Organizational/Operational processes

more>

America has a broken political system our leaders need to fix

By Former Rep. Tom Ridge (R-Pa.) and Former Sen. Tom Daschle (D-S.D.) – According to a recent poll by the American Psychological Association, the future of the country is a significant source of anxiety for nearly two-thirds of Americans.

We elect leaders to place country above party, address the most critical issues plaguing the nation and prevent future crisis from taking root. But Washington needs to face the facts: The political system itself is broken, wearing down too many leaders with endless fundraising demands and turning the job of elected representative into a never-ending campaign whose purpose is to vilify the other party. We used to have to arrange schedules around fundraisers for senators. It was considered the exception, and now it is the rule.

Leadership in Congress focuses more on the capacity of lawmakers to raise money, rather than their policy expertise and merit on legislative issues. The political parties and system supporting them have come to care more about majorities in the legislative branch than governing.

Our experience tells us that if America lacks the will and moral strength to elect leaders who will repair the divisions in the country, then dysfunction in government will continue to be the greatest threat facing the nation. Our leadership on the global stage will diminish. Democracy as a way of life, and the freedoms only it can offer, will suffer. We must strengthen our bonds, not deepen our divisions. more>