Five Years On From Ground Zero

Five years on, I talked to Afshin Rattansi who worked on the Al Jazeera strand that first identified the 9/11 plot. His novel, The Dream of the Decade, deals with the issues of finance, terrorism and the media.

What do you think about the conspiracy theories that linger about 9/11?

“‘I don’t want to get into the conspiracy theories that maintain that 2,752 people died because of deliberate action by U.S. federal authorities. Those theories, along with scores of websites that catalogue seeming inconsistencies about the attacks, are believed, however, by hundreds of millions of people around the world. That is because the U.S. is so little trusted when it comes to truths in the developed world. Worse is that the perception that the U.S. administration invariably lies to its citizens and the people of the world catalysing hatred for the U.S. and perhaps catalysing far worse attacks in the future.”

What was it like to work with people who had met the masterminds of 9/11?

“When I heard that bin Laden’s people told my boss at Al Jazeera that it was the rich Saudi who vetoed a strike on U.S. nuclear facilities using passenger planes, I felt a shiver for what may yet happen if U.S. foreign policy continues to inspire those ranged against United States.”

And what do you think of the U.S. response to 9/11?

“Obviously, the biggest threat as far as premature death to U.S. citizens is not terrorism. It’s poverty. If the Annie E. Casey Foundation is to be believed, 24 million U.S. children are living in households with adults without full-time employment. Massive cuts in welfare by the Clinton administration were compounded by President Bush. You have worsening economic indicators, greater power exerted by private equity firms – Business Week had a great piece about “The Merchants of Red Ink” –

“Tom Herz and the the liberal think tank, Center for American Progress (CAP), have shown,

a child born into a poor family, defined as the bottom 20 percent of the income distribution, has an one-in-a-hundred chance of making it into the top five percent income level. Poverty is generational and very dependent on race but it’s not that different for those who think they’ll make it rich through hard work. Children born in the middle quintile, that’s to parents whose incomes is between $42,000 and $54,300 also have only a 1.8 percent chance of reaching the top five percent, a likelihood not much higher than in poor families. We know that millions of Americans – men, women and children – are dying because of something far more dangerous than Al Qaeda.”

But that is surely a long term goal – to end poverty?

“Given that according to UNICEF, it would only take an estimated $40 billion a year to achieve and maintain universal access to basic education for all people in the world, basic health care for all, reproductive health care for all women, adequate food for all, and clean water and safe sewers, the response to the real killer of most Americas is pretty obvious, not least when you realise that $40 billion is less than 4% of the combined wealth of the 225 richest people in the world.”

But combatting terrorism has been the main task that the Bush administration have set themselves. How have they done?

“Hundreds of thousands have died because of U.S. military adventures since 9/11, all sanctioned by democratically accountable U.S. institutions, on the basis of lies.

“Obviously, during the UK investigation into the death of the source used by my programme at the BBC, Dr. David Kelly, it was painfully obvious how the so-called establishment would go to the ends of the earth to believe every statement made by Prime Minister Tony Blair. Given the number of deaths in Iraq, it makes one shudder to realise that populations should not seek information from their elected officials, nor their media. Uranium from Niger, the outing of CIA officials, notes copied from the internet..everything showed the parlous state of modern journalism and how close journalists have got to power. It is left to comedians, now, people like Jon Stewart and Stephen Colbert to tell the truth to power and to people.”

But what about the internet?

“It gets harder to find things. But, certainly, United States TV is streets ahead of the UK when it comes to television news. Channel 4 News in London and the BBC’s Newsnight TV programmes in the UK are so boring that it is not surprising no one watches them. If I was Tony Blair, I would thank my stars (or his holistic healers) for the fact that the UK has no show like Amy Goodman’s Democracy Now, daily news programme, broadcast from New York. Even Fox News which is blatant about its partisanship, often gives a better more rounded international picture of events in the world than the UK now receives, thanks to its boring selection of Reuters and Associated Press round-up wires.”

But there has been harsh criticism of policy on Iraq in the press?

“Since Iraq, liberal newspapers and broadcasters have steadily moved to the far right when it comes to economic policy. As for foreign policy, criticism of the Iraq war, both in the UK and the U.S. seems often enough to be based on partisan politics. But I’m not sure Al Gore wouldn’t have invaded Iraq. Here in the UK, it is left to the Conservative Daily Telegraph to regularly lambast the Blair government. But I’m absolutely sure that a Conservative government would have acted just as Blair’s did. The only anomaly is why trade unions that back Tony Blair’s Labour Party, should so readily support the wanton destruction of countries such as Lebanon and Iraq, thus aiding the 7/7 plotters that killed 52 in London’s worst ever terrorist attack.”

So if it is the global economy that is killing so many more than the terrorists, how is that going to perform?

“Luckily, for those with credit cards and properties, debt financing of the UK and U.S. economies have saved a lot of people from the abyss. This triumph of optimism over economic theory has succeeded in keeping things ticking over for decades. Alan Greenspan – the Fed Reserve Chairman who helped send South East Asia into an economic tailspin and nearly destroyed the world economy famously said that theory and not kept up.”

To conclude, what should one think, five years after the attacks on New York and Washington?

“Well, worse crimes are committed every day. And that the zero sum game of the world’ superpower’s need for Middle East Oil and its backing of the main recruiting sergeant for Al Qaeds (Israel) needs to be solved.”

And are we closer to a solution?

“I can currently see no progress on either of these two axiomatic plates upon which the political techtonics of the world rest. As the IMF and the World Bank and the UN grind away, an ever connected world allows the disgruntled to continue their deadly theatrical events. Let’s hope that next time, they don’t use the nuclear option.”

Thanks.

Wealth Building – Other People’s Money (OPM): What the Rich and Wealthy Have Known for Years

Getting rich isn’t all about hard work. In fact hard work has got little to do with getting rich. It’s not that I don’t advocate hard work, I do. I love working hard but I especially like to see myself and others working smart. I know that getting rich and achieving success is not exclusively the domain of blood, sweat and tears. I’ve seen friends, work colleagues and family work themselves to the bone for little or no reward.

The Cult of Hard Work, Self-Sacrifice and The Golden Goose

There is a cult of self-sacrifice evident in our culture that warrants you to be extra busy, working super hard, and putting in crazy hours. When it comes to personal wealth building and attaining success, you’re the golden goose. However, you can only push the golden goose so hard before he/she stops laying those golden eggs. Without exception every golden goose will eventually run out of energy, capacity or enthusiasm. Therefore, learning how to utilise Other Peoples Time, Money and Skills (i.e. leveraging) is a pre-requisite to becoming rich, building wealth and achieving success.

Other Peoples Money & Leverage

In general terms, getting access to Other People’s Money (OPM) is a form of leverage that enables you to go beyond the limits of your own resources and instead apply resourcefulness to everything you do. In business terms, leverage is the key that differentiates self-employed person who owns a job from the business owner who own a business. In financial/investment terms it means getting access to cash that’s not yours in order to buy assets that you control and that produce income.

What the Rich and Wealthy Have Know for Years

The richest and especially the wealthiest people in the world have known about leveraging Other People’s Money for years. Everyone from Jean Paul Getty, Aristotle Onassis and Donald Trump have excelled at this wealth building principle numero uno. Their use of OPM to buys assets is legendary. Onassis in particular is known for having secured contracts to transport ore and oil in ships and tankers he didn’t yet own and then going to the banks securing the loans to buy the ships and tankers using the contracts. A brazen and gifted deal-maker if there ever was one!

People go about building wealth or acquiring assets in different ways based on their background, past experiences and what they have been taught or know about money. For the most part people think of great riches and wealth as largely unattainable because of the model or mindset they have about money. What most people fail to understand is that you actually don’t need money to make money. Sure it helps but what you really need is access to Other People’s Money in order to make money.

The Benefits of Utilising Other People’s Money

OPM buys you time; it enables you do things before you would otherwise be able to do them. It allows you participate in deals your own resources don’t allow you to do. It enables you make choices you couldn’t otherwise make. It takes the average person many, many years to accumulate wealth or build a business entirely from their own resources. By utilising the power of Other People’s Money you can fast-track your personal wealth building or the growth of a business. Importantly, your personal wealth building is no longer limited to what you have been able to save and invest from your earned income.

Getting High on OPM – Real Estate

Most people’s typical first experience of using Other People’s Money is when they take on a mortgage to buy their home. Typically, their initial down-payment combined with their contract of employment that demonstrates their ability to produce future income is enough for them to secure a mortgage loan against home. Unfortunately your home is not an asset, well it is, but it’s the bank’s asset as they are making income from the loan advanced, not you. If you can get a bank to advance you a mortgage loan so as to purchase an investment rental property (an asset) whereby you get to retain what remains of the rental income after you pay the mortgage, then you have used Other People’s Money to buy and asset to produce income. In order to secure this loan you need to demonstrate to the bank that you are a safe bet. They will typically want to see that you have at least 20% of the purchase price as a down-payment and sufficient net income being generated by this asset and other sources to ride out any changes in interest rates, rental void periods etc.

Getting High on OPM – Business

In business, entrepreneurs and business owners get access to Other People’s Money when they write a business plan which they present to a business agent or venture capitalist i.e. investors. This process is known as raising capital. In return for the money (known as capital) received the investor who provided the capital typically receives equity (i.e. shareholding) in the business. Money can also be borrowed from a bank and the bank is repaid the principal and also receives interest on the loan. It’s the business owner’s job to put this capital to good use; to produce products or services that generate sales revenue to pay back the loan and, of course, all the other expenditures of the business.

Other People’s Money is always available and accessible to a greater or lesser extent depending on overall market conditions. Your first responsibility as an entrepreneur or investor seeking capital is to understand and inform yourself as to the multiple sources of OPM and numerous deal structures that utilize OPM.

Jumping Through the Window of Opportunity

Finally, the chief take-away from all this talk about Other People’s Money is that rather than saying to yourself “I can’t afford to start a business” or “I don’t have the money to invest in that deal” you now know there are no real excuses or limitations. Not that using Other People’s Money is without its pitfalls. Like every financial transaction there are inherent risks. Firstly, you are liable to repay the capital borrowed and generally provide an agreed additional return to the investor. However, that’s not up for discussion here. The key thing for now is to realize that you can always get access to Other People’s Money to enable you participate in deals and do things you previously thought weren’t possible. You can start jumping through the window of opportunity when it’s open…and as you begin implementing this principle of Other People’s Money into your business and personal wealth building endeavors you begin to realize its open all the time!

Turn $10k Into $1m in 3 Years – Vital Tips For ECommerce Success

The E-commerce world is one of the most profitable industries to be involved in, however the great rewards on offer have lead to immense competition. A quick search of online shops on Google reveals hundreds of stores selling the same thing. Some insider knowledge along with careful planning and dedication is all you’ll really need to become successful.

The best part of Ecommerce is the small capital needed to get going compared with the unlimited potential turnover. An initial investment of $10,000 can result in an annual turnover of $1,000,000 + in just 3 years. This may seem a difficult task, however this guide offers some handy tips that will help you reach this goal!

Website Design

You need a great looking website in order to be profitable. The competitive nature of E-commerce means that your website must stand out. All the successful online stores have functional and professional looking websites. They have spent years and mountains of money perfecting their sites so spend time going through the top online stores and incorporate their best features into your site.

Building a professional website for under $10,000

A premium Graphic design and Web development company will charge around $40,000 for a fully functional and professional site. You can get the same quality for under $10,000 if you follow these steps.

1. Find a local university which has IT courses and put an ad on their notice boards looking for people finishing their degrees. Post grad students have all the required technical skill and they charge a third of the going rate with major companies.

2. Use an existing open source shopping cart platform such as Magento, so most of the work will already have been done.

3. Spend time researching and designing the features of the site yourself. Have a clear vision of what you want, you will save thousands if you do it yourself rather than paying your designer for this.

Planning and preparation

One of the keys to success is to plan and prepare before you launch. Every minute detail of the business must be recognised and a course of action taken. Everything from dealing with enquiries, processing sales, through to organising returns must be planned out to the smallest details.

Strong relationships with suppliers

Once you join a distributor, make an effort to meet with them personally or at least spend time talking with your sales rep about your vision for your business. If you have a good relationship with your distributor, they will actively help you to succeed and achieve your goals. You can then ask for special pricing which will give you a competitive advantage in the market.

Repeat customers

As soon as a steady turnover begins to develop your focus should turn towards your customer base. The following tactics are a sold starting point in getting your customers to return.

o Weekly newsletters with discount coupons and specials

o Automatic emails sent 1 and 2 months after an order reminding the customer of your existence

o Referral programs which offer store credit to those who refer friends to your store.

By following these tips and by having a strong marketing campaign, you can turn an initial investment of under $10,000 into an annual turnover of $1,000,000 in just 3 years!

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