Perspective

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(No Transcript)
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Perspective
Yes, we are all in this together
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Pride in our countries
I believe strongly in our freedoms from which we
garner our strength in times of
adversity Innovation, Free Enterprise, Adaptive
Flexibility and Creative Risk Taking for
solutions to societal needs and market
opportunities.
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As Nations of Free Citizens
We must forget our political differences,
recognize that we are under economic siege and
mobilize as if this were an economic World War
III.
Rising energy costs, taxes and interest
ratesfuel our Economic Peril!
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As Economic Developers
Fearlessly assist communities that have embraced
economic development. Dont Count on others to
lead, be the example.
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Our Countries Can Must Act to

• Restore global financial confidence
• Rebuild communities abilities to compete globally
• Accelerate our economy while transitioning our
  traditional workforce to new skills
• Recover international reputation as economic
  benchmark for others
• Win the innovation race
• Rebuild our failing antiquated infrastructure
  w/smart super conductive
• Introduce Alternative Energies into the
  mainstream energy grids and make them competitive
• Restore Consumer confidence in government,
  business and the financial systems

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Globalization
The World Is Interconnected
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Information Driven Economy
Knowledge is the new power base!
Innovation, Information, Communication,
Education, Trade, Technology and Energy drive
this economy
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Media is the tool fordriving opinions and public
moods
Change the mindset to economic recoveryChange is
inevitable, but progress is optional.
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Business Changes Constantly

• In The Next 60 Minutes
• 251 businesses will have a suit, lien or judgment
  filed against them
• 183 business telephone numbers will change or be
  disconnected
• 43 business addresses will change
• 36 directorship (CEO, CFO, etc.) changes will
  occur
• 33 new businesses will open their doors
• 8 companies will change their names
• 7 businesses will file for bankruptcy
• So In A Year
• 21 of CEOs will change
• 20 of all addresses will change
• 18 of telephone numbers will change
• 17 of business names will change
• According to Hoovers Business Information
  Services, May 7, 2008

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International Economy

• More and more nations enter global marketplace
  (rising global middle class) which drives energy
  costs (Petrolism)
• Understand embrace global influence- we are all
  interconnected (North America is 30 of World
  Economy)
• BRICE Impact (Brazil, Russia, India, China
  Europe) North Americas greatest competitors
• Energy touches everything, and Islamic terrorism
  thrives on fossil fuels fundscut the source win
  the war

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A Perfect Storm
Peak Oil, Peak Energy Production, Peak Population
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Political Economic Ponzi Scheme
A tsunami is building and ready to hit future
generations, but this one wont be set off by
earthquakes or other natural disasters. Instead,
it will be a fiscal calamity created by the
failure of government and business leaders to
deal with the financial drain of millions of
retiring baby boomers. David Walker, U.S.
Comptroller General
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What is the perfect storm?
40 years of Fiscal imbalance in the United
States, resulting from economic, societal and
political events centered around globalization
and deficit spending. U.S. is largely in
denial of the reality of circumstances
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The signs are Abundant

• We're sliding into a depression. Dr. Batras
  idea he proposed is a 20 consumer subsidy on the
  purchase of American-made autos, In general, Dr.
  Batra feels that the Obama Administration is
  focusing too much attention on Wall Street, which
  drives 15 of the economy as opposed to
  consumers, which drive 70 of the economy.
• Dr. Ravi Batra
• The Economy is heading for a global economic
  flu, vexed with rising oil, taxes, and interest
  rates on public debts which, will create an
  economic trifecta of a perfect economic storm to
  sink recovery for several years.
• Dr. (Doom/Realist) Nouriel Roubini
• The Government cannot stave off the baby boomer
  population bubble. The economic stimulus
  packages will fail to stop the economic waves of
  shock and awe in this global meltdown. There is
  just not enough government capacity to stop the
  economic waves of fear, greed and consumer
  anxiety that are going to only increase with the
  continued unemployment and busted consumer
  finances. Deflation could be on the rise due to
  these conditions.
• Harry Dent, Jr.

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Recognize It

• Impending serious economic turmoil 2008-2020.
  This is the beginning not the end of economic
  chaos.
• Reaching tipping point about 2010 boomer driven
  economics, foreclosures peak, increasing
  unemployment impact (11)

Fear is driven by not understanding the problems
we face and then failing to grasp the
opportunities.
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Current US Economic Condition

• Misuse of abundant economic fruits
• Fiscal irresponsibility
• Failure to transform our workforce
• Burgeoning debt (as individuals) 6T
• Borrowing to Pay operating costs (OPM)
• Wealth imbalance shiftbook end economy

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Current US Economic ConditionThese will drive a
W shaped continued recessionrecovery series

• Trade Imbalances
• Educational Issues
• Ineffective Tax System
• Mismanagement of Natural Resources
• Lack of Energy Innovation Focus as a Nation
• Debt v. Income 1.34 per 1.00

Foreign debt 2.1 Trillion led by Japan, China,
UK, oil producing countries, About 75 of our
deficit and we import 500 billion more than we
export. pre-Economic Stimulus
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The Tipping Point
The Perils facing Peoples Economic Dreams as we
know them today are abundant and increasingly
difficult to contain
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Occurring by 2010 to 2013

• The 'tipping point', which once crossed, will
  make it nearly impossible for us to remain
  competitive in the global economy unless we act
  now.
• Serious policy reform must start in 2010 to
  transition through this next decade

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Mass of Baby Boomers
Will begin to withdraw more from the system than
they pay in. Red ink will exponentially increase
from 2010 to 2019.
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Ben Bernanke
Unless Social Security and Medicare are
revamped, the massive burden from retiring baby
boomers will place major strains on the nation's
budget and the economy. Federal Reserve
Chairman Ben Bernanke
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Sub Prime Mortgage Mess
Sub prime mortgage mess precipitated the
collapsing real estate market. Combined with
Banks turning homes into credit cards.
Commercial collapse is still coming in the next
economic time bombstarting in 2010
CREDIT MARKETS ARE FROZEN
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Foreclosures continue to rise
Foreclosure filings up 75 in 2007 vs. 2006.-
RealtyTrac 2008 2009 set all-time records
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Bankruptcy

• Consumer bankruptcy filings increased about 40
  in 2007 vs. 2006.
• American Bankruptcy Institute
• 2008 and 2009 set all time records2010 could be
  worse yet!

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Fiscal Stability

• Reopen credit markets by supporting investments
  into job creation projects
• Stabilize the housing mortgages and allow those
  capable of paying based on realistic loan values
  to be refinanced
• Invest in our energy future with projects that
  expand capacity, distribution, diversity of
  supplies and alternatives
• Balance our budget with new fair taxes more on
  consumption than wealthfair trade versus tariffs

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Fearless Leaders
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Time for Economic Development
Driven by world class communities and leaders at
the local, regional, state and national
levelThey must understand and make others
understand what is truly at stake today
Thrivival
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Thrivival Rules

• Adaptability to change is crucial
• Grow and invest in emerging Industries of the
  future
• Create your own sources of capital
• Keep politics out of Economic Development
• Invest in highly productive workforce solutions
• Invest in accountable and performance-based
  education
• Recruit highly talented immigrants and creative
  citizens
• Create a world class community mindset (Must Do,
  Can Do, Will Do)
• Find pearls of opportunity in chaos!

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Community Leaders Must

• Be fearless leaders
• Lead by example
• Provide solutions
• Handle the pain
• Take calculated risks
• Play many roles

• Stay focused through chaotic timesPearls of
  opportunity theory
• Be knowledge-driven
• See over the horizon in your investment strategies

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The ParadigmShift
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Paradigm Shift is about Human Capital

• 'War for Talent is occurring-McKinsey
  Company, 1997
• Companies Nations must focus on talent as their
  greatest asset ..-Richard Florida
• Retaining talent is key Great locales become
  magnets
• Todays young workers live first and work second
  -Rebecca Ryan

People Matter Most
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Paradigm Shift Is

• Companies and jobs will follow human capital
  -Richard Florida
• Communities need to invest to make themselves
  attractive to human capital
• Communities must retain this human capital to
  increase investment and flourish
• Immigration is still a key magnet for attracting
  talent and productivityget the best draft choices

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World-Class Communities
Today World Class Communities are not determined
by geographic location or the size of their
population and not by the availability of natural
resources rather by the mindset and quality of
their local leadership in addressing change
progress.
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WCC Attributes

• Superior physical infrastructure and public
  services
• Highly skilled productive workforce
• Highly accessible accountable educational
  system
• Innovative business models that create catalyst
  investments and lead to a robust business climate
• Forward thinking economic development policies
• Highly competitive diverse local economy
• Vibrant performing visual arts community
• Abundant recreational activities green-space
• Attractive cost of living for human capital
• Exceptional geography is a bonus

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World Class Quiz

• World-class communities come in small, medium,
  large, and super sized examples
• They exist in all areas of the world
• Have one common trait they invest in themselves
  without waiting for outside economic leverage
• Create catalyst projects that build investment
  opportunities

www.EconomicDeveloper.com
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Prosperitywith aPurpose
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Cultivate Community Investors

• Responsibility to find and cultivate those in
  your community who want what is best for the
  community
• Create investment opportunities that serve
  short-term interests with long-term windfalls for
  the community (catalyst projects)
• Categorize your investment portals by types and
  select investment-minded leaders for each network
  (diversify your economic basket)
• Remember the Golden Ruleapplies locally!

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Silver Buckshot

• Seed Capital Fund for Expansion of SBIR/SIOR
  research applications (application match grants)
• Angel Network to invest in new entrepreneurial
  projects (business plan to exit plan)
• Commerce Industry Park Investor Pool
  (public-private partnership)-Site Acquisitions,
  PPPs
• Business Retention / Acquisition Venture Capital
  Fund (fill niche needs in the community)
• Leveraged Small Business Revolving Loan Fund
  (20-1 leverage)CDE designationNMTCs, etc.

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Alternative Energy Policies

• Understand how to harness local initiatives to
  address alternative energy sources
• Break our local dependence on Petrolism
• Create Efficient Clean Energy infrastructure and
  encourage local construction along those lines
• Deploy new affordable transportation
  infrastructure locally
• Incentivize natural resource and energy
  conservation

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Communities that Succeed

• Create a plan for their own destiny
• Fund the plan with their own capital
• Grow leaders that put their money where their
  vision is
• Create windfalls for those that take the risk and
  lead by example (Pubic Private Partnerships)
• Dont exclude any that want to participate in the
  future of their community
• Will invest in themselves without waiting for
  outside assistance as a prerequisite for action

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• These Communities Become Winners in the Global
  Economy.

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The Future
So whats next, in these Chaotic Economic times?
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The New, New Deal
Green is a bubble, but it will usher in profound
new technologies that will drive energy
innovation for this century.
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President Obama Must The verdict on his policy
reforms is still unclear

• Create jobs and opportunities for working-class
  Americans
• Better equip and train our workers to compete
• Adopt new, fairer tax fiscal policies that do
  not penalize our working class, but address
  global trade imbalances
• Transition our energy dependence from fossil
  fuels to alternative energy and build a smart and
  high conductive grid for distribution
• Create a meaningful solution to affordable
  healthcare, retirement, unemployment, disability
  and retraining for our workforce
• Re-instill confidence in the consumer economy
  with fiscal balance for consumer responsibilities
• Provide a fair disposition of the toxic assets in
  the financial systems that is fair and equitable
  to the taxpayers as a priority.

Barack Obama, President of the United States
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Energy the Economic Trifecta

• Creates a scenario that reduces our carbon
  footprint and fossil fuel addiction
• Changes the climate strain and reduces our
  destruction of finite resources while conserving
• Begins to destabilize the major source of
  terrorist funding
• Creates the largest economic expansion in history
  to innovatively deploy new products and
  infrastructure

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Peak Oil Peak Capacity
The next great economic calamity we will earn
the hard way, it will likely be of the
availability of affordable energy due to a lack
of production capacity -John Hofmeister,
Former President Shell oil The seeds of our
economic woes lie in our own ability to generate
an economic recovery. Just when we gain traction
the energy prices will soar back to give us a
black eye and extinguish the economic recovery.
-Scott Nyquist, McKinsey Company
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The Coming Energy Bottleneck
94 Option
50 Coal 40 Nuclear10 Alternative
Our focus has to be on capacity, distribution and
alternatives (geothermal, wind, solar) plus
expanding existing (clean coal, nuclear, hydro)
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Citizens for Affordable Energy
The Four Mores of Energy in the 21st Century

• More Energy From All Sources
• More Technology For Efficiency
• More Environmental Protection
• More Infrastructure

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2010 and Beyond
Signs of Economic Recovery (True or False?)

• Wall Street driven by Big Government is not
  sustainable
• US still second highest corporate taxes in the
  Industrialized world, 40 (bundled). Taxing
  wealth could cause capital flight abroad.
• Commercial Real Estate is escalating in
  deterioration. Creating another financial bubble
• Longest recession since WWII (20 months)
• Unemployment will increase in 2010 beyond 10
• Main Street shows no signs of recovery feels
  abandoned
• Energy Economics (Petrolism) will dampen and
  create a W shaped recovery we are going into a
  false recovery period

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Betting over the Horizon

• Advanced Materials (Thin Film Solar)
• Nanotechnology-Micro Manufacturing
• Smart devices infrastructure (grid, meter,
  device, consumer)
• Bio-Pharming and Genetics (health aging)
• Alternative Energy fuels refinement
  (algaenot ethanol, more efficient bio-fuels
  Gen II plant conversions)
• Smart Mobility transportation vehicles (cars,
  trains, planes, trains, trucks,ships)
• Facility based energy efficiency
• Efficient, Affordable Energy Storage Devices

Energy touches everything!
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W-Six Philosophy

• What is the message? North Americas economy is
  failing to live up to its potential and to
  compete globally.
• Why should I care? Our countries, our families,
  and especially, our children who will suffer
  and suffer miserably if we dont change our ways
  fast!
• What is in this for me? Your future prosperity
  and the prosperity of your children and your
  childrens children, will be drastically
  improved.
• What are you asking me to do? Begin a massive,
  dynamic and nation-changing crusade To restore
  the nations can-do attitude and spirit and To
  find, recruit and empower leaders who can, and
  will, lead to restore the political progress and
  economic growth of this nation.
• When will I see the fruits of this effort? Im
  asking for you to demand such aggressive action
  that you will see the fruits of your effort
  almost immediately in your community. It requires
  a mindset set of Lets Get it done!
• What happens if I dont act? Civilizations rise
  and fall (Rome, Great Britain, Greece,) If we
  dont act very soon, it will be too late to act.

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The 100-Year Legacy

• Globalization was just a transitional period
  between the information and energy evolution it
  is a Transformational Economy that will spawn a
  new advanced manufacturing revolution
• Brought realization the world is seamless and
  without boundaries and capital will flow to the
  best ROI and business climate
• Addressed the climate change problem
• Addressed our fossil fuel addiction and spawned
  clean renewable fuels as the underpinning to
  energy consumption by the masses
• Developed clean and sustainable energy platforms
  with smart grids, networks, devices and
  consumers.
• Ignited an innovative manufacturing shift back to
  highly industrialized economies close to markets
  and less risk of terrorism and political turmoil

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Thank You
www.EconomicDeveloper.com
Don.Holbrook_at_EconomicDeveloper.com