Balanced Growth Blog

China is Back

Tue, 17 Aug 2010 12:29:27 GMT

By Jason M. Bordui, President, Balanced Growth Enterprises, LLC (August 17, 2010)

On August 5, 2010, I attend a speech by Dr. Peter Zhao Xiao, a prominent Chinese economist and representative of the current Chinese government. Dr. Zhao Xiao contended that China was the leader in most aspects of human society through the 14^th century. He also asserted that China plans to return to its dominant role in human society for the next 500 years (that would be the year 2020 to the year 2520). He noted that China is right on track to reach this goal as it recently passed Japan as the world's #2 economy and projects that it will surpass the United States as the largest economy in the world in the next 10 years (by 2020).

To reach the goal of re-establishing itself as the dominant nation in the world, the Chinese government commissioned Dr. Zhao Xiao to study the economy of the United States of America. Dr. Zhao Xiao's most notable conclusion was that the USA has a robust economic system that was built upon a foundation of strong values. He was even more specific to note that America's success was established upon a foundation of Christian values. This value system enabled America to mobilize around a shared vision and to export these values throughout the world in the form of the "American Dream."

Dr. Zhao Xiao continued to explain that China plans to not only have the world's leading economy; it will also have more Christians than any other nation in the world in the near future. The only limitation to these aspirations is that there is no such thing as the "Chinese Dream" and this is why China is looking to apply American values as a significant ingredient to its future plans.

Should China be commended for its understanding of the importance of American values? Or, should Americans be concerned that the world's next Super Power knows so much about the fabric of the historic prosperity of America? The answer to both questions is unequivocally, yes.

I was encouraged by Dr. Zhao Xiao's basic comprehension of human values, but I am far more troubled that the United States' seems to grapple with a shared understanding of its own greatness. America was made great by hard-working people with strong values, innovative companies, inspired leaders, loving families, and a deep and abiding love of the American Dream. Not only that, America was founded upon a declaration that "they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness" and a pledge as "one nation under God, indivisible, with liberty and justice for all." China is correct; America was founded upon Christian values.

But, what does America think?

The Love of the Game

Sat, 10 Jul 2010 12:56:25 GMT

By Jason M. Bordui, President, Balanced Growth Enterprises (July 10, 2010)

Thirty minutes after "The Decision" of Lebron James to leave his hometown basketball team, I received a message from my best friend who happens to be a business executive in Cleveland, Ohio. When I went to listen, I thought the message was going to about his disappointment and rage over what Cavaliers' owner Dan Gilbert termed Lebron's "cowardly betrayal." But this was not his message at all. His message was about his absolute excitement that his young son, Jivan, had just hit a two-run home run in an All-Star baseball game. His pride and enthusiasm for his little boy's big sports accomplishment was overflowing and inspiring.

For me, my best friend's message about Jivan, especially given the timing of it, put the lesson of this entire saga in perspective for me. First and foremost, from childhood through the pros, it should be about the love of the game. In 2007, Lebron James basically single-handedly led the Cavaliers to defeat a superior Detroit Pistons team in the Eastern Conference Finals. At that time; Lebron played with raw passion, contagious enthusiasm, and unstoppable dominance. Since that season ended, Lebron and the entire NBA have been consumed with this 2010 free agency period. I don't know what happened in this year's playoffs for Lebron, but it seems plausible to me that thoughts of free agency may have been a distraction to him as there was no way the 2007 Lebron James would have been accused of giving up on his team as he was this past year. Unfortunately, the raw passion for the game that transcends age, race, gender, economic status, and talent-level was compromised in this whole, rather ugly episode.

The same lesson pertains to every person who takes pride in their profession. Especially in difficult times, it is still about the love of the "game" and the mastery of the craft. It is about doing a great job, maximizing potential, creating value, making a difference, and elevating other people's lives. This lesson may not have kept Lebron James in Cleveland, but he might have handled the difficult situation better. Perhaps he could have offered Cleveland and his former team a heartfelt explanation that even a parent would eventually have to accept....he is a 25 year-old young man who was ready to leave home for the first time and go play ball with his friends.

Independence Day 2010

Mon, 05 Jul 2010 07:30:22 GMT

By Jason M. Bordui, President & Chief Client Strategist, Balanced Growth Consulting (July 5, 2010)

On Independence Day, I feel compelled to say thank you to the members of the United States Military and their families. They make an unimaginable sacrifice for our country. It is upon the shoulders of those who have fought and continue to fight that we now stand as a free and independent nation.

It is also important to appreciate that freedom is woven in to the fabric of this country. America envisioned and implemented a democratic system of governance combined with a free market economy that did something that had never been done before. Democracy and capitalism worked together to invite participation, create opportunity, and generate wealth not just for the few; but for the few and the many.

This high level of economic participation inspires entrepreneurs, fuels innovation, motivates workers, attracts capital, creates value, and generates new opportunities for more people to achieve the American dream. Although it may not seem like it during these challenging times, the dream for a better future is as bright and brilliant as it has ever been. And, it is worth fighting for.

What is Innovation?

Fri, 02 Jul 2010 18:10:22 GMT

By Jason M. Bordui, President & Chief Client Strategist, Balanced Growth Consulting (July 2, 2010)

Innovation is the process of envisioning a brighter future and making it an enduring reality. Innovation is fueled by a never-ending desire to make things better than they were before and is driven by an incessant enthusiasm for creating value. Innovation is sustained by the determination to not just operate profitably, but to find new ways to fulfill unmet needs. Innovation is a passion and a skill; a process and a destination; a value creator and revenue generator. The best news is that innovation is available to any individual, organization, or economy that is committed to tapping into its power.

The Heart of Capitalism

Sun, 27 Jun 2010 23:58:31 GMT

By Jason Bordui, President & Chief Client Strategist, Balanced Growth Consulting (June 27, 2010)

I attended the ILAM investment seminar hosted by OptionMonster and CNBC regulars Pete Najarian, Jon Najarian, and Guy Adami this weekend. One of the guest speakers was Vince Ferrell, the Chief Investment Officer of Soleil Securities. Mr. Ferrell is a regular CNBC contributor and a long-standing voice of trust on Wall Street. Mr. Ferrell provided two of the most memorable experiences of this seminar.

First, Guy Adami mentioned that Mr. Ferrell has been battling cancer. When the topic came up, Mr. Ferrell simply said that he has never been more focused on making the most of each and every day. He went on for a few minutes of reflection that was extremely moving. Although Wall Street has received tons of justifiably negative criticism, it is important to know that there are leaders on the street who have big hearts. I was honored to meet Mr. Ferrell after the program and found that he was extremely gracious and insightful.

Second, Mr. Ferrell provided an outstanding overview of economic conditions in the US and abroad. He explained topics such as Household Debt as a Percentage of Income, Federal Spending as a Percentage of GDP, and Personal Savings Rates. It simple terms, Americans and their government have spent beyond their means. Recently, consumers have started to save more and may be spending less which presents a growth dilemma to an economy where over 70% of GDP is driven by consumer spending.

Mr. Ferrell did a great job of explaining the economic challenge. Although complex, I would contend that there are some enduring fundamentals that would begin to accelerate our ability to restore the American economy:

1. A contagious optimism about life, about America, and about our ability to work together to meet this economic challenge.

2. A cohesive economic strategy that enables growth and dramatically simplifies taxation.

3. A renewed dedication to creating value through innovation, entrerpreneurship, and just making things better than they were before.

4. The discipline to eliminate all wasteful spending.

These are not political statements; these are the chambers of the heart of capitalism for a government, a business, a family, and an individual.

Chicago Innovation Awards

Thu, 03 Jun 2010 10:43:07 GMT

Balanced Growth Consulting has been a friend of the Chicago Innovation Awards for the past few years. The kick-off celebration for the 2010 cycle was held on June 2. Most importantly, the awards provide a compelling energy to spark innovation and bring the Chicago business community together. The timing for motivating value creation through innovation is more important than ever especially during this economic cycle.

For the 9th consecutive year, the awards will celebrate the creative spirit of the Chicago region by recognizing and honoring the city’s most innovative new products and services. Key sponsors include Allstate, Wrigley, and Google. Past winners include Abbott, Motorola, Groupon, and comScore. Nominations for this prestigious award will be open through July 31, 2010. Click here for more information about the awards.