Fed Chair Jerome Powell: Discusses Digital Currency

Federal Chair Jerome Powell discusses digital currency. He says they are testing digital currency and its viability. The U.S. doesn't need to be first but it does need to do it right. There is no expectation to raise interest rates anytime soon as some big sectors of the economy have not fully recovered. These sectors are still suffering and expect to suffer into the near future. Optimism is high and people believe the economy will come roaring back. 

Originally I suspect it will still take about 10 years to develop an international digital currency and for companies to adopt new currency methods. Watching this video, and the background activities, I would suspect we are closer than we think. Perhaps we will have an initial currency system within the next 5 years. That will further embed the U.S. into the Digital Economy.

Why is this important for business minded people? Well, it will impact how you will conduct business. Instead of using multiple different systems to exchange money the government will have their own medium of exchange. How you collect money, pay bills, and do other things will be radically different if you can do from your phone as easy as handing someone money. 

There is a pretty good discussion of the interview in The Business Journal

Secretary of State Antony Blinken Discusses Vaccine and World "Hot Spots".

Its important to stay aware of international affairs (Foreign Affairs pretty good magazine I have read. Nope no one is paying me to say that! I have read it off and on over the years. I think I get it free with  Prime membership in Kindle 🤔.) also impacts business, trade, commerce, and much general policy. Things have been heating up between Russia and the U.S. Some of this may be Russian aspirations against the backdrop of US-China geopolitical (Asia-Europe) shifts.

 

Video on Aerospace and Defense in the U.P.

The U.P. has a budding aerospace and defense industry that will become increasingly important for the future. I'm an advocate of maximizing the benefits of Delta County to create economic clusters that improve upon multiple industries at once (i.e. multi-clustering). There is human capital available in the area and with new U.P. investments it is possible to turn DC into a shipping, small manufacturing, and tourism area.

IMF: US to Lift Global GDP-Can We Sustain It?

The IMF projects the U.S. will be biggest global growth influencer this year. Its great that we can lift the global economy out of a crisis but it is better that we turn government investment into long term growth. That will require us to think more about sustainable economic development and how key infrastructure investments improve the economic capacity of "actors" (commercial activity) within the system. In the Information Age we will have much better statistics and metrics that will provide information on how to improve the infrastructure in a way that leads to net positive economic outputs (based on relative development trajectories) through stronger business and government coordination (See Perpetual Sustainable Economy). 

The IMF states, "Global growth is projected at 6 percent in 2021, moderating to 4.4 percent in 2022. The projections for 2021 and 2022 are stronger than in the October 2020 WEO. The upward revision reflects additional fiscal support in a few large economies, the anticipated vaccine-powered recovery in the second half of 2021, and continued adaptation of economic activity to subdued mobility. High uncertainty surrounds this outlook, related to the path of the pandemic, the effectiveness of policy support to provide a bridge to vaccine-powered normalization, and the evolution of financial conditions." (IMF, April 2021, para 2)

Ocean Beach Pier

There are times when you can take a shot and ponder our environment. 

Rural Connectivity Advisory Committee for the U.P.

The U.P. has great potential not only as a tourist destination but also as host to advanced manufacturing and technology as it relates to robotics, space, and military applications. The Internet is what will power the next economy and its important to get the U.P. "connected". Future jobs and opportunities will come from our ability to accept and adapt to market shifts that lean in the direction of blooming Digital GDP.  Having a committee to look at these issues is vitally important for understanding where the U.P. current is and where it needs to be in finding its position in the digital economy (See Digital GDP Growth).

You may also want to see how society develops (See Societal Economic Development)  and how science can increase local development (SME and Neuro-Economics and Firm Linking) and human capital (Human Capital FDI). 

Firm Linking

Skills and Technology Investing

The following was taken from a press release. 

For Immediate Release April 6, 2021 Contact: James Hogge 231-944-7633

Bergman Forms Rural Connectivity Advisory Committee   Washington – Today, Rep. Jack Bergman announced the formation of the Rural Connectivity Advisory Committee for Michigan’s First District. The Committee will serve as a forum where Rep. Bergman, internet service providers, local and tribal leaders, and stakeholder groups can share ideas, opportunities, and solutions in the fight to address the critical lack of connectivity in Northern Michigan and the Upper Peninsula. Rep. Bergman noted, "In Michigan’s First District, far too many of us struggle to secure a reliable online connection in our homes and businesses – an issue which the pandemic has only highlighted. During my time in Congress, I’ve worked to advance a wide range of solutions for rural and remote communities because there is no silver bullet when it comes to bridging the digital divide to share in the 21st Century economy. I’m looking forward to bringing this committee together to discuss solutions and take advantage of opportunities to expand connectivity.” Some key goals of the Committee include: Identifying underlying issues behind the lack of connectivity in Michigan’s First District; Exploring actionable solutions to bridge the digital divide in Michigan’s rural communities; Seeking coordination among federal, state, local, tribal, and private partners; Informing members and constituents of ongoing efforts and available resources; and Hearing from relevant government officials involved in broadband programs. Connectivity and access to broadband is a top priority for Michigan’s First District, and that’s why Rep. Bergman has taken action: Achieving federal funds for rural broadband infrastructure buildouts through Federal Communications Commission (FCC) and U.S. Department of Agriculture (USDA) programs. Most recently, COVID-19 relief legislation signed into law will provide more than $7 billion in broadband-related funding. Coordinating closely with constituents, providers, and stakeholders to help communities become more connected. Rep. Bergman has proudly supported grant and loan applications to reach unserved and underserved households in Northern Michigan and the Upper Peninsula. Introducing new legislation like the Rural Broadband Window of Opportunity Act to level the playing field for broadband expansion in Northern Michigan and the Upper Peninsula in the FCC’s Rural Digital Opportunity Fund.

Manufacturing PMI Jumps to 64.7%-Great Lakes Industries May Need New Shipping Infrastructure

Manufacturing PMI reached a towering height of 64.7% well above what would be considered exceptional (@55%). Production also spiked by 4.9 points and new orders leapt forward 3.2 points. This pick up of activity in 17 of 18 industries indicates a broader speeding up of the economy. The highest PMI since December 1983 matched with current job growth of (BLS.Gov) how new orders, increased manufacturing activity, and employment are pointing to wide reaching changes in the market. Those changes could indicate fundamental shifts on the way in which the economy will operated.

What we would like to see is the entire economic system make an upswing into the digital world where it will function on a higher economic-sociological platform. Such an economic transition would include increased advanced technologies that would result in radically new products and more efficient processes. We will become globally aware through big data and that will help us run real time statistics for countries. Our world will be seen more from a global perspective (See Global Perspective) versus the limitations of local perspective. 

Sometimes its helpful to move beyond textbook to industry experts. A strong article entitled The Economy Continues To Gain Strength In 12 Charts by Chuck Jones on the multifold economic indicators that are putting lift into economic activity across a broad spectrum of society. 

We can see the signs in the technology innovative underbelly that shows increased activities in 5 G, advanced manufacturing strategies, virtual business models, labor market shifts, advanced robotics, semi conductors, electric cars, alternative energies and new industries that spark from innovation of science and technology (See Information Age Economic Platform). 

Continued growth will rest on infrastructure and the efficiency (cost effectiveness) of moving supplies and products around the region but also into the international world (See Adaptive Supply Chains). In the U.S. we have outsourced much of our manufacturing and have allowed our infrastructure to start a process of physical depreciation . Implementing strategic distribution centers (i.e. Delta County MI) with product value additives can make a big difference long term growth where nimbleness and costs are important.

Delta County is strategically located on the Great Lakes between multiple manufacturing centers, new military/space activities, and near US/Canada border where. Delta County County could act as a regional transport juncture for various industries in the Greatlakes that seek to export products and import supplies. The county has been under developed but should be considered as a distribution center for some of the $718.4 billion in 2019 between U.S. and Canada(US Trade) as well as impacts $6 Trillion GDP (Seaway Partnership)(See Great Lakes Shipping and Exports). 

With a sense of direction we can turn the chaos from the Pandemic into something that rejuvenates America's spirit in the face of growing international competition. We are not just a country of businesses but a country that seeks to increase freedoms and opportunities to a diverse group of stakeholders. Ensuring that we have the most competitive infrastructure that leads to further advanced adaptation can lead to environmental mastery and heighted digital GDP Growth (See Digital GDP Recovery). 

Part of a larger work on innovative economic post-covid clusters (See Post-Covid Cluster Theory).

Jones, C. (March 31s, 2021) The Economy Continues To Gain Strength In 12 Charts Retrieved https://www.forbes.com/sites/chuckjones/2021/03/31/the-economy-continues-to-gain-strength-in-12-charts/?sh=21955cb51abf

Institution of Supply Change Management Press Release