Past Issues

Now that last year’s federal election is well behind us, it’s imperative that Democrats and Republicans drop the partisan politics and work towards a much bigger problem than their constant fighting – creating a sustainable model that will allow the economy to continue growing. In recent months there have been positive signs that the U.S. is gaining momentum after what was a tough few years beginning with the international global economic meltdown in 2008.

The House and Senate can’t continue to operate in a state of flux as they have for the past four years – opening up old and new wounds just because both major political parties want to flex their muscles and show who’s really in charge. The well-being of Americans is on the line, so there’s no time for childish, petty arguments by the fine folks in Washington.

The two sides narrowly avoided going over the socalled “fiscal cliff” although most financial experts say a deal was in the cards all the way. It was more about each side getting as much as possible before doing the handshake. All that is quite likely true, because had they not come to terms it could have sent the American economy tumbling backwards and into recession. But by waiting until the last minute to pull together a limited bill, which extends the Bush-era tax rates for most Americans and extends long-term unemployment insurance. Congress sidelined other major fiscal issues that really needed to be resolved prior to 2013. The debt ceiling is one such issue – now at a level of more than $16 trillion. Recently, the Republican-led House of Representatives voted to pass a bill that would force President Obama to estimate when the federal government’s budget will balance again.

The continent of Africa is often perceived by western world as lacking in so many ways and for that reason it’s often not given much consideration as a place that would be ripe for doing business. But as our cover story reveals, there is much potential for a number of the 54 countries within that continent, which is the world’s second largest in both size and populace covering 20 per cent of the earth’s land surface and more than 1 billion people, accounting for 15 per cent of the world’s population.

The American Business Journal conducted an exclusive interview with the man who created just the second open-end Africa Fund anywhere in the United States. Robert Scharar, president and senior portfolio manager of The Commonwealth Fund is also president and CEO of FCA Corp. in Houston, Texas. He’s spent a great deal of his life in numerous African nations and has gotten to know how each one is very much different from the other. It’s Scharar’s opinion that a lack of education on our part is partly to blame for not recognizing this great opportunity – and he’s right.

In hi-tech, the former Research In Motion, now BlackBerry, came out strong with its Jan. 30 public release of its Superphone the BlackBerry 10. Will it be enough for the former leader in smartphone technology to once again do battle with the Apple iPhone, Samsung Galaxy GS and other Androids?

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Depending on one’s point of view, 2012 provided several positive building blocks from a business standpoint; or one could surmise it as missed opportunities due to the never-ending political bickering emanating from Washington.

On the upside, America has weathered the ongoing economic storm that has enveloped many nations, not the least of whom are in Europe where many remain in a flux over how to move ahead. Germany has led the charge to try to salvage the European Union from a monetary standpoint, all the while making harsh but necessary austerity demands on countries like Greece, dangling on the edge of economic collapse.

With President Barack Obama retaining the White House and his Democrats controlling the Senate, there’s reason to believe we’re in for a four-year extension of the bumpy ride we’ve been through as the Republicans maintain control of the House of Representatives.

Senate Majority leader Harry Reid uttered this statement upon hearing his Democratic Party would maintain the Senate: “Now that the election is over, it’s time to put politics aside and work together to find solutions. The strategy of obstruction, gridlock and delay was soundly rejected by the American people. Now they are looking to us for solutions. Democrats and Republicans must come together, and show that we are up to the challenge. This is no time for excuses. This is no time for putting things off until later. We can achieve big things when we work together.”

“When” being the operative word. Taking it one step further: when – and how often? The U.S. economy simply won’t be able to endure another four years of complete dysfunction coming out of Washington without perilous economic consequences.

It will come down to American businesses and consumers to save the day but they need effective government policy. The good news is that consumers are becoming increasingly confident about the job market. Rising home prices, increased job creation and somewhat lower fuel costs have stimulated consumer confidence to its highest level in nearly five years, which has led to steady consumer spending after somewhat of a summer pullback.

According to recent government statistics, the national economy is improving. Let’s hope stubborn politicians don’t knock genuine progress off course.

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There’s no doubt the global economic crisis has managed to entangle many of the major economic countries in the world, including the United States. Recent dismal job numbers for May confirm that companies are taking a very bearish approach to employee expansion. But where other countries are on the verge of economic drowning, the U.S. economy is decently treading water and will overcome this setback, as it always has in the past.

Part of individual economic stability means guarding oneself against panicky investment advice, either for or against. Facebook seems like a prime example of that. To all those who frantically purchased Facebook shares at $38 a shot during the IPO – on dreams of becoming rich – playing the lottery might well provide better odds. Through all the hype, hoopla and hysteria, one major noticeable flaw has remained constant and plainly visible in this business model, and yet has been largely ignored: How can Facebook generate any appreciable level of advertising revenue to make it an ongoing relevant and growing business resulting in profits to shareholders?

The only answers until now seem to have been: “don’t know” or even worse: “it likely can’t”. General Motors pulled out of an advertising deal with Facebook, revealing that the working relationship did nothing to improve sales. Facebook co-founder Mark Zuckerberg didn’t help matters during his visit to Wall Street when he quipped “Going public is an important milestone in our history. But here’s the thing: our mission isn’t to be a public company. Our mission is to make the world more open and connected.” Open and connected: great for social communication; not so great for shareholders.

Finally, you’ve likely heard there will be no more Big Gulps if Big Brother, aka New York City Mayor Michael Bloomberg, has his way. In his infinite wisdom, the leader of Gotham has determined size limits should be placed on glasses and cups for soda pop sold in eating establishments and convenience stores (where applicable) in his fine city. Bloomberg is calling for cup-size restrictions of no more than 16 oz. While noble in his desire to help cut calories with obesity amongst Americans now at his highest levels ever, the truth is that anyone wanting more soda pop – diet or otherwise – will simply ask the wait staff for a refill, or in the case of fast-food restaurants with self-serve locations, go up to the counter themselves. Restricting the size of the container holding the heavily sugar-based drinks might help marginally for those who feel guilty about having seconds – but the real answer is changing people’s attitudes and outlook on health matters.

View E-Mag | Biz-in-action

There’s no doubt the global economic crisis has managed to entangle many of the major economic countries in the world, including the United States. Recent dismal job numbers for May confirm that companies are taking a very bearish approach to employee expansion. But where other countries are on the verge of economic drowning, the U.S. economy is decently treading water and will overcome this setback, as it always has in the past.

Part of individual economic stability means guarding oneself against panicky investment advice, either for or against. Facebook seems like a prime example of that. To all those who frantically purchased Facebook shares at $38 a shot during the IPO – on dreams of becoming rich – playing the lottery might well provide better odds. Through all the hype, hoopla and hysteria, one major noticeable flaw has remained constant and plainly visible in this business model, and yet has been largely ignored: How can Facebook generate any appreciable level of advertising revenue to make it an ongoing relevant and growing business resulting in profits to shareholders?

The only answers until now seem to have been: “don’t know” or even worse: “it likely can’t”. General Motors pulled out of an advertising deal with Facebook, revealing that the working relationship did nothing to improve sales. Facebook co-founder Mark Zuckerberg didn’t help matters during his visit to Wall Street when he quipped “Going public is an important milestone in our history. But here’s the thing: our mission isn’t to be a public company. Our mission is to make the world more open and connected.” Open and connected: great for social communication; not so great for shareholders.

Finally, you’ve likely heard there will be no more Big Gulps if Big Brother, aka New York City Mayor Michael Bloomberg, has his way. In his infinite wisdom, the leader of Gotham has determined size limits should be placed on glasses and cups for soda pop sold in eating establishments and convenience stores (where applicable) in his fine city. Bloomberg is calling for cup-size restrictions of no more than 16 oz. While noble in his desire to help cut calories with obesity amongst Americans now at his highest levels ever, the truth is that anyone wanting more soda pop – diet or otherwise – will simply ask the wait staff for a refill, or in the case of fast-food restaurants with self-serve locations, go up to the counter themselves. Restricting the size of the container holding the heavily sugar-based drinks might help marginally for those who feel guilty about having seconds – but the real answer is changing people’s attitudes and outlook on health matters.

View E-Mag | Biz-in-action

There’s no doubt the global economic crisis has managed to entangle many of the major economic countries in the world, including the United States. Recent dismal job numbers for May confirm that companies are taking a very bearish approach to employee expansion. But where other countries are on the verge of economic drowning, the U.S. economy is decently treading water and will overcome this setback, as it always has in the past.

Part of individual economic stability means guarding oneself against panicky investment advice, either for or against. Facebook seems like a prime example of that. To all those who frantically purchased Facebook shares at $38 a shot during the IPO – on dreams of becoming rich – playing the lottery might well provide better odds. Through all the hype, hoopla and hysteria, one major noticeable flaw has remained constant and plainly visible in this business model, and yet has been largely ignored: How can Facebook generate any appreciable level of advertising revenue to make it an ongoing relevant and growing business resulting in profits to shareholders?

The only answers until now seem to have been: “don’t know” or even worse: “it likely can’t”. General Motors pulled out of an advertising deal with Facebook, revealing that the working relationship did nothing to improve sales. Facebook co-founder Mark Zuckerberg didn’t help matters during his visit to Wall Street when he quipped “Going public is an important milestone in our history. But here’s the thing: our mission isn’t to be a public company. Our mission is to make the world more open and connected.” Open and connected: great for social communication; not so great for shareholders.

Finally, you’ve likely heard there will be no more Big Gulps if Big Brother, aka New York City Mayor Michael Bloomberg, has his way. In his infinite wisdom, the leader of Gotham has determined size limits should be placed on glasses and cups for soda pop sold in eating establishments and convenience stores (where applicable) in his fine city. Bloomberg is calling for cup-size restrictions of no more than 16 oz. While noble in his desire to help cut calories with obesity amongst Americans now at his highest levels ever, the truth is that anyone wanting more soda pop – diet or otherwise – will simply ask the wait staff for a refill, or in the case of fast-food restaurants with self-serve locations, go up to the counter themselves. Restricting the size of the container holding the heavily sugar-based drinks might help marginally for those who feel guilty about having seconds – but the real answer is changing people’s attitudes and outlook on health matters.

View E-Mag | Biz-in-action

It's always an intriguing dynamic when we see the political leaders of this country, Canada and Mexico sit down together as part of a tight-knit North American alliance-building session in hopes of enhancing the economic fortunes of all three countries.

The recent gathering of The Three Amigos – President Barack Obama, Canadian Prime Minister Stephen Harper and Mexican President Felipe Calderon – shed further light on how these three close allies still have their fundamental and philosophical differences and by extension aren't one bit afraid to air much of their dirty laundry in public, not unlike a family squabble. That said, it's certainly not on the same abhorrent level of the Kardashians or the Osbournes, but there was an astonishing degree of candidness sprouting from all sides of the triumvirate when the two-hour meeting in Washington centered on such topics as energy, trade and drug cartels.

A feature in our last issue of The American Business Journal focused on government regulation with respect to online piracy matters that have now become mainstream concerns and the many millions of dollars that are lost each year because of it. Such legislation being bandied about has included: Stop Online Piracy Act (SOPA), Protect IP Act (PIPA) and Online Protection and Enforcement of Digital Trade Act (OPEN). It's still a work in progress and likely will be for some time as titans from both sides plead their cases to the government both publicly and privately.

Taking another page from the online community complaints' department we have consumer privacy that has made its way to center stage. Online companies claim they need to collect data on users in order to provide a more efficient and seamless Web surfing experience. Consumers, in growing numbers, say they are uneasy about the amount of private information being stored when it comes to their surfing habits. It's yet another gray area that is going to take a great deal of mediation to sort out.

Finally, a tribute to the late Mike Wallace, who is best remembered for being one of the original reporters on 60 Minutes, which debuted in 1968. What many people may not know is that he started out as an actor and a game-show host prior to turning his attention to hard news in a media career that spanned almost 70 years. He was a hard-nosed journalist who made crooked businessmen, thieves and hardened criminals quake in their boots when they saw him approaching. More often than not, it likely wasn't going to be your best day if Mike Wallace wanted an interview.

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While there’s never a shortage of controversial issues to wrestle with on a national scope, one contentious matter that undoubtedly goes to the forefront is the topic of Internet regulation and how much intervention should be imposed by the federal government.

At loggerheads are traditional entities such as publishers, film studios and music industry producers versus new media giants such as Google, Facebook and Twitter, who want information to continue flowing, unfettered. The dispute comes down to one thing—money. Property creators/owners feel they are being ripped off by piracy advocates who often make intellectual property available to the public free of charge. Of course, it’s never really free. Most of those sites make their money through a variety of means, including click-thru ads, page advertisements, videos, and sharing email lists with various online marketers.

The government has largely kept clear of this thorny issue for quite some time, but it’s evident that’s not going to be the case much longer. Recently several congressmen have brought forth legislation, looking to have their bills passed into law. It’s still very much in the elementary stages at this point, but the stone has begun to turn and its picking up momentum with each revolution as it heads down a steep hill.

For those unaware of the terms SOPA, PIPA and OPEN, you can read about at that in this edition. Such types of acronyms are going to become far more well-known in the coming months and years based on their potential to change the way we send and receive information through cyberspace in the future.

Also in this issue of ABJ, the Republican leadership candidates weigh in on President Barack Obama’s decision to halt the Keystone XL Pipeline project between this country and Canada to which Newt Gingrich calls it a “stunningly stupid thing to do.”

Additionally, your feedback on what we are doing is always welcomed and appreciated. If there’s a feature story or business news issue that you believe warrants being elevated to the forefront, let us know. I cannot guarantee we’ll be able to accommodate each idea, but we’ll certainly review all requests. Your voice matters to us.

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“We believe the debts of the following nations, among others, are not sustainable in the current economic environment: Greece, Italy, Japan, Ireland, Iceland, Belgium, Portugal, France...”

It’s a frightening statement, made even more so when you know that it was said by Kyle Bass of Hayman Capital Management in the company’s annual letter to shareholders. Like almost no one else, Bass understands the big picture, predicting the housing collapse and making his investors a lot of money in 2008, and has been in front of the curve throughout this European debt crisis.

In a candid interview with James Rickards, author of Currency Wars: The Making of the Next Global Crisis, monetary policies home and abroad have to be examined carefully in order to quell the damage and how money is now used as a weapon for protecting national interests.

Although we cannot help situations in countries a continent away, here at home we can continue to export, import, manufacture, and consume, and as these pages of the American Business Journal can attest to excellence in business domestically.

It’s not a product of chance that the U.S. has such a strong entrepreneurial base. As we learn in our conversation with Kathy Cloninger during her last week as CEO of the Girl Scouts, over 70 per cent of female business owners in the U.S. are former Girl Scouts themselves, having honed their skills selling cookies as youngsters.

Something to think about next time the Girl Scouts come to your door.

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Working in the digital industry, we here at ABJ collectively bow our heads in honor of Steve Jobs, co-founder of Apple Inc. In his short life, Jobs achieved what we all aspire to, to make a positive impact, to leave the world a better place, or, to use his own words, "to put a ding in the universe."

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Despite deals mad e in Washington that raised the federal debt ceiling and an agreement to bail out Greece (again), the markets revealed an indelible sense of non-confidence. This sentiment was not assuaged by S&P downgrading the U.S. credit rating from AAA to AA status.

The events of the past few weeks illustrate how important confidence and perceived confidence is to our economy.

In a speech to the nation, President Obama pointed out something that we at ABJ are proud to promote: our citizens’ ‘perseverance…courage, and willingness to shoulder the burdens we face”.

In these pages are companies that embody the spirit needed shake the cobwebs off and move our economy forward. Business initiatives such as Big Sky Economic Development, for example, work diligently to ensure the maximum potential is taken from the abundant natural resources that surround them.

President Obama cited Warren Buffett, who knows a thing or two about good investments, who said, “If there were a quadruple-A rating, I’d give the United States that.”

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As America continues to struggle while pulling itself out of the recession, here at the American Business Journal we find ourselves asking the question: what is the answer? Despite the vast number of great American businesses that have triumphed in times of adversity, financial illiteracy and the related economic effects is a lingering problem.

Our cover story this issue investigates a growing movement that stresses the importance of financial education. Read about an innovative entrepreneur, Susan Beacham, who shaped her business around these principles, as we examine the state of financial literacy in America.

Always keeping abreast of new business opportunities, the largest expansion of generic top level domain names (gTLDs) thus far is about to hit the Internet. ABJ is thrilled to have a legal contribution this month from William Schultz, a specialist in online trademark and copyright litigation matters. Check out the article on page 12 for all the information your business needs to know about this new ruling.

Our monthly State Focus takes us to Georgia, where we profile some strong municipalities, and follow an innovative park revitalization initiative in Atlanta. And as always, ABJ continues to profile many more of those innovative and successful companies that are the foundation of our business community.

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There are moments , some of them unthinkable, when events happen that force the entire global community to stop—and watch.

Millions of people all over the world have been glued to TV coverage of devastation and tragedy that has rocked Japan following the massive earthquake and tsunami on March 11.

Though we cannot control these events, and those other incomprehensible natural disasters that have shaken us so far in 2011, we can come together as a global community to help those in a time of need.

We dedicate this month’s ABJ to those people affected by natural disasters, our friends in Japan and our friends in other countries who have been affected by similar calamities.

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