A colleague sent us a fascinating e-mail this morning. It is entitled "Global Intelligence Briefing for CEO's" and is written by Herb Meyer,  a former Special Assistant to the Director of the CIA. In this briefing, Meyer speaks to four major transformative issues facing the United States. Here are some snippets most relevant to Maui property owners.

While China is addicted to manufacturing, Americans are addicted to low prices. As a result, a unique kind of economic codependency has
developed between the two countries. If we ever stop buying from China, they will explode politically. If China stops selling to us, our economy will
take a huge hit because prices will jump. We are subsidizing their economic development, they are subsidizing our economic growth.

In our mind, this view is the correct one. China is unable to wreck the US economy by undermining our currency without paying an unacceptable price.

Today’s business environment is very complex and competitive. To succeed, you have to be the best, which means having
the highest quality and lowest cost. Whatever your price point, you must  have the best quality and lowest price. To be the best, you have to concentrate on one thing. You can’t be all things to all people and be the best.

We run our business based on belief that this is true.

The European economy is beginning to fracture. The Euro is down.Countries like Italy are starting to talk about pulling out of the European Union because it is killing them. When things get bad economically in Europe, they tend to get very nasty politically.

Yup. And the most important note for us as property owners.

In the U.S. we also have an aging population. Boomers are starting to retire at a massive rate. These retirements will have several major impacts:
Possible massive sell-off of large four-bedroom houses and a movement to condos.An enormous drain on the treasury. Boomers vote, and they
want their benefits, even if it means putting a crushing tax burden on their kids to get them. Social Security will be a huge problem. As thisgeneration ages, it will start to drain the system. We are the only country in the world where there are no age limits on medical procedures.An enormous drain on the health care system. This will alsoincrease the tax burden on the young, which will cause them to delay marriage and having families, which will drive down the birth rate even further.

Is Meyer correct? Of course there is no way to know. But he provides plenty to think about. If you'd like a copy of the whole briefing, e-mail us.