by: Geoff Ficke

William Shakespeare” famous quote from Hamlet, “When sorrows come, they come not single spies, but in battalions”, is particularly relevant today.

All of the news seems bad. The negative numbers are huge. The human devastation seems interminable. Governments everywhere seem to have lost control. Debt is perverse on a personal, corporate and governmental level.

This glass seems to be mostly empty. It is not!

From the depths of disaster grow the seeds of opportunity. Much as Mother Nature’s wildfires clear overgrowth and enables fields and forests to regenerate themselves, so does the opportunity that germinates from social and financial meltdown. The removal of diseased institutions affords entrepreneurs and reformers the chance to fill an essential void.

Throughout history dynasties, dictatorships and tyrants have risen, and ultimately fallen. They are usually replaced by something much better. The violence of the French Revolution enabled Napoleon Bonaparte to turn France into a warrior state under his dictatorial rule. His “Waterloo” enabled the state to develop into a modern democratically governed republic. The Hapsburg’s in Germany, the Hohenzollern’s in Austria and the Bourbon’s in France all enjoyed the wealth, power and comforts of royal rule before being deposited on the junk heap of history.

Hitler in Germany, Hirohito in Japan and the Communist dictators of Russia all fell and were succeeded by democratic governments with a modern, more open style of governance. Their oppressive rule guided their populations disastrously to decades of war, hunger and societal despair. Something much better has acceded their brutality.

Businesses have historically expired if they did not evolve and regenerate themselves as markets progressed toward new technologies. The home delivery of ice in the first half of the 20th century was replaced by the mass marketing of refrigerators. Carts, whip, buggy and bicycle manufacturers disappeared as the automobile developed as an affordable method of conveyance. The acceptance of Thomas Edison’s incandescent light bulb greatly diminished the need for thousands of local candle makers.

As the automobile industry developed there were hundreds of nameplates producing niche vehicles. Names like Packard, Stutz, Essex, LaSalle, Dusenburg, Austin and Cord and most other makes of automobile grew, stagnated and died as they could not compete with newly developed tastes, technologies, economies of scale and mass manufacturing techniques pioneered by magnates such as Alfred Sloan, Henry Ford and Walter Chrysler. General Motors, Ford Motor Company and Chrysler became behemoths with vast profits, international distribution and massive marketing programs. The rest simply faded away leaving little but reminiscences.

Today “The Big Three”, Chrysler, Ford and General Motors are all staring at the grim reaper. To paraphrase Shakespeare’s Hamlet quote’ “their sorrows are here, and they are here in battalions”. Every mistake that management and labor could make that would harm a commercial institution they have made, and often repeatedly so. Wrong choices in models, lack of recognition of the ultimate issue of fuel economy, boring styling, strangling union work rules and poor quality perceptions are just some of the reasons that “The Big Three” are so close to being the three, the two, or the one midgets. It appears highly unlikely that they will continue to exist as independent entities.

Much is made of the potential loss to the United States of any, or all of these iconic carmakers. And yet, automobile manufacturing in the country is booming. Mercedes-Benz, Subaru, Honda, BMW, Toyota, and Nissan have all built factories here in recent decades. Volkswagon has announced that they plan to, as well. Each of these makes has targeted features, styling and benefits that they incorporate into their machines that “The Big Three” had not identified. Also, they have all built their factories in “right to work” states, where labor union influence is minimal. While paying excellent wages and providing competitive benefits, these foreign Companies are not hog tied by arcane, non-productive work rules. They do not confront legacy costs that price domestic manufacturer’s models at such high retails.

We are all being effected by a global financial conflagration. The future economic welfare of citizens, industry and governments all over the world are intertwined and will be decided by how the people who got us into this mess approach getting us out. I use the pronoun “us, because we are almost all to blame.

Home foreclosures are surging because of stupidity and greed. People today, certainly in the developed countries, crave things they do not need and can not afford. Some people should not own homes. They can not afford the maintenance, the insurance, the down payment, or the taxes that accompany homeownership. A married couple with one child and a $3500 per month income, should never have attempted to purchase a $400,000 home, with 4 bedrooms, on a sub-prime loan with nothing down. They were fools, as was the lender, the mortgage broker and the buyer of the derivative that this loan was packaged into.

Banks and insurance Companies that purchased these esoteric mortgage derivative vehicles, historically hugely profitable, are falling like flies. Northern Rock in England, ING in Holland, Indy Mac, Countrywide, Wachovia and WaMu here, are only a few of the powerhouse financial institutions that are now closed, merged or selling off assets. The insurance giant AIG has been taken over by the government. Lehman Brothers, one of the most venerable, respected investment banks was shut down by the government. Merrill Lynch has been sold to Bank of America.

Fannie Mae and Freddie Mac have been hammered for their role in precipitating the credit bubble that has lead us to this precipice. The Congress, which passed laws spurring Fannie and Freddie to make dubious loans to non-creditworthy borrowers, is looking for scapegoats. A number of our sainted Congressmen want to see “perp walks”. I agree. However, I am confident that the real “perp’s” won’t walk.

The problems seem endless and daunting. They are coming “in battalions”. Nevertheless, we will survive this, hopefully learn from it, and prosper from the opportunity to fill the gaps opened by systemic failure. The equity markets appear to offer a “once in a lifetime” opportunity to profit from the steep losses incurred because of the panic the credit debacle has induced. Strong, agile financial institutions, such as Wells Fargo and State Street, will emerge to fill the vacuum left in the wake of the disappearance of hundreds of firms.

Individuals will have to make more prudent purchasing decisions. 84 and 96 months car loans will disappear, making luxury automobiles more difficult to acquire. “Skin in the game” in the form of down payments will be required to purchase real estate, benefiting the homeowner and the lender. Credit cards will be harder to obtain and the credit limits will be lower.

Every person can use this maelstrom as an opportunity to review real needs and wants. Living beneath one’s means might even make a comeback.

by: Geoff Ficke

One of the signal economic thinkers of the 20th century was the Nobel Prize winning economist Milton Friedman. His many books and papers, interviews and television specials have left us a valuable trove of thoughts and observations that should serve as guideposts during our current difficult economic times. His death has left a void that no contemporary thinker has been able to fill. That is most unfortunate, especially now.

Recently, I revisited my copy of Professor Friedman’s signature work, Free to Choose. It is still as pertinent, fresh and poignant, as it was the day it was first published. His reasoned defense of economic and personal freedom, strictly limited government and the rule of law need to be reviewed and protected fiercely by each citizen, that values these sacred rights.

“Thank heavens we do not get all of the government that we are made to pay for”, stated Professor Friedman in one of his most oft quoted observations. The simple, but powerful clarity of these 17 words serve as testament to the deep understanding and concern he possessed about the ever-expanding role of centrally planned, distant government and the excessive price we pay for it. We see the detritus of insatiable government in every aspect of our lives, and yet, we seem incapable of slowing, preferably stopping the rapid growth of this corrupt, inefficient monster.

The Federal Government is nearing a 3 trillion dollar annual budget. No one really knows the exact amount of deficit spending we incur each year, but it is massive and growing. The more revenue the government realizes, the faster spending increases. We have un-funded liabilities of somewhere around $53 trillion for Medicare and Medicaid, and $25 trillion for Social Security. These are just estimates; no one can state the absolute accurate numbers. And, remember the government refers to these obligations as “un-funded liabilities”, not debt as private citizens and industry would be required to report and account for.

In 1976, President Jimmy Carter created the Department of Education. Before then, education was largely a local affair. This boondoggle has grown massively since its inception in employees, budget, programs and un-funded mandates. Less than 7% of the $60 Billion annual budget for the DOE is returned to state and local schools as grants. The rest is consumed in “bureaucracy heaven”. Can anyone seriously argue that public school performance has improved since we were blessed with the Department of Education and the thousands of theoreticians, consultants and knowledge brokers that this cesspool supports? You can actually graph the decline of graduation rates, the increase in truancy, lowered standardized test scores and achievement tests from the date we were blessed with the DOE.

The government enjoys natural monopolies in many areas. The Postal Service, the Passport Office, AMTRACK, The FAA, and so many more government agencies provide we citizens with one stop shopping. In every case, the result is subsidy, waste, and mismanagement. Waiting up to 90 days to receive a passport is ridiculous. The Postal Service and AMTRACK require subsidies every year, while FedEx, UPS, and the railroads make billions of dollars in profit each year. Why would any thinking person believe that government should be expanded into even more areas of our lives.

Thomas Jefferson, a soul brother to Milton Friedman said, “He is governed best who is governed least”. And yet, an ever-growing segment of our citizenry constantly seeks to redress perceived grievances and personally poor decision making by petitioning politicians for outcomes favorable to their desires. We know with absolute certainty that government is too large, inefficient, duplicitous and wasteful to solve problems.

Government is not in business to solve problems: it is in business to institutionalize problems! Social Security, Medicare and Medicaid, Welfare, Food Stamps have all grown exponentially. The problems these programs, and many others, were supposed to address have grown even more exponentially. Bureaucracies are not in the business of solving problems and shrinking, then going out of business as they successfully complete their mission. The very core of the nature of a bureaucracy is to grow insatiably.

As more citizens abdicate their personal responsibilities and seek government support, there are all too many politicians, lobbyists, issue advocates and social engineers ready to comply and satisfy this sycophancy. We see many people campaigning for a government takeover of the health care system. When government provides free health care: that is when health care will get really expensive! How in the world can so many people, be so blind about so much.

My Company, Duquesa Marketing, provides consulting services to inventors, small businesses and entrepreneurs bootstrapping businesses. By their very nature, these people are fearless, independent, creative and driven. They seek to take advantage of the amazing opportunities available to every citizen of the United States, if only they would take advantage of these possibilities. To a person, successful entrepreneurs do not understand, and usually despise government dependency. Simply being a citizen of this great country is the equivalent of winning the geographic lottery.

President John Kennedy famously stated, “Ask not what your country can do for you, ask what you can do for your country”? The growing sentiment today seems to infer, ask not what you can do for your country; ask what your country can do for you? John Kennedy, Milton Friedman and Thomas Jefferson are symbolic personages of a sentiment that must be revived. Every citizen must contribute to the public good, but the government must get out of the way and let the populace live and prosper by the dint of their own efforts. Downsizing this albatross is in order, and quickly!

by: Geoff Ficke

For most of history natural and man made disasters were treated as simple “Acts of God”. After the event, the effected populations were left to fend for themselves. They rebuilt their lives as best they could but there was no agency or provider that could be approached for assistance. Charity was virtually unknown in any organized way. Governments were distant and not in the business of administering relief funds.

Thus, a commercial opportunity was noticed, addressed and successfully harvested. In 1670 there was a massive fire in London. It was the largest fire in history until that time. The city was, at that time the largest, most densely populated in the world. Almost all of the buildings in London were constructed of wood and were built closely together, At that time, as now, London was a very horizontally designed metropolis (New York City and Hong Kong in contrast, are much more vertically built). The fire fed upon itself and raged widely, consuming all in its path.

After the fire burnt itself out, the city of London and it’s population were decimated. A prescient resident named Nicholas Barbon observed first hand the total destruction of his the metropolis. Barbon was a German trained physician. He assisted by caring for the injured but felt that something more could be done to assist people in rebuilding their physical, financial and emotional lives.

His brilliant, elegantly simple idea was to create an assurance product that could be sold in mass, at affordable rates and cover the possibility of loss by fire. Nicholas Barbon met with accountants and financiers and developed some of the earliest actuarial tables to assess and price risk. London Assurance was incorporated and was the first known entity to sell fire insurance to individuals and businesses.

In America, Benjamin Franklin started the first fire insurance company in Philadelphia in the 1760’s. Franklin was an entrepreneur with a wide range of business and philanthropic interests. He was probably one of America’s richest men of that era. He started the first fire department in Philadelphia at the same time. Imagine selling fire insurance for profit, and assembling a professional fire department to mitigate losses from fires. Bright fellow, no?

The great Chicago fire and the San Francisco fire of 1906 would have left these modern, beautiful metropolises with much sadder futures if the use of fire insurance had not been widely incorporated by the time they burned. Chicago is now known as “The 2nd City”, not because it is secondary to New York, but because the modern city we enjoy was rebuilt on top of the burned out husk of old Chicago.

Today the use of fire insurance is ubiquitous. We must have fire insurance to secure a home loan. Cities around the world have crafted building codes to minimize fire hazards among other reasons. The assessment of fire insurance risk is an actuarial craft. Hundreds of thousands of jobs are existent because of the fire and casualty industry that Nicholas Barbon pioneered.

The genius of Nicholas Barbon in assembling the elements that successfully commercialized the fire insurance business benefit us to this day. His vision allows millions of families and businesses around the world to survive disasters and re-assemble their lives.

Everyday, in locations all over the world, entrepreneurs are working to create new products, techniques and services that can improve our lives. Ben Franklin, Thomas Edison, Bill Gates and other famous inventors are paid homage for their contributions and genius. They are worthy role models for people seeking to create new opportunities. Men like Nicholas Barbon are less obvious. And yet, the seemingly mundane creation of fire insurance is a wonderful template for us to consider as we seek to craft exciting, new innovations.

by: Geoff Ficke

Any visitor to modern Egypt, or viewer of a travelogue on this amazing country is awed by the antiquities visible everywhere. The Sphinx, hundreds of pyramids and mausoleums, temples and statuary are testament to the brilliance of this 4000 year old culture. These relics have survived the ravages of time, weather, wars and invasions.

Almost entirely forgotten, however, is the ancient Egyptian fetish for personal health and cleanliness. We know from written records and paintings that they were very keen to promote health, wellness and hygiene in ways that were amazingly advanced for the time, and would be considered modern today. Unfortunately, after the glory of the pharaoh’s faded, these habits were forgotten for centuries and, particularly in Western Europe, people lived in filth for ages.

An example of ancient Egyptians interest in cleanliness is their oral hygiene regimen. Egypt is an arid, windy, sandy country. Dust was omnipresent and was often blown into their foodstuffs. Grains were ground for flour between stone wheels and bits of the stone would become mixed into the final product. We know from examining mummies that their teeth were ground down almost to the gum line from a lifetime of chewing this gritty diet. The pain must have been unbearable.

Halitosis is most prevalent when tooth and gum disease is present. The Egyptians perfected the art of perfumery. For treatment of halitosis they would chew fragrant herbs and rinse with a concoction of warm water, a drop of perfume and an herb cocktail. They also practiced a form of dentistry, using needles to pierce and bleed abscesses. Priests acted as doctors and dentists.

More than half of all ancient Egyptian babies died before the age of five. Women were very protective of their bodies as soon as they became aware of their imminent pregnancy. We know that they utilized a very clever pregnancy test, thousands of years before the red/blue urine test modern women buy at pharmacies. Wheat or oat grains were collected, and the ancient Egyptian woman would urinate on the seeds. If the seeds sprouted, the woman knew she was pregnant and would adjust her personal regimen to prepare for the precious moment of childbirth.

There are many more examples of practical, but advanced hygienic procedures that were used 4000 years ago to pamper and protect the human body. And yet, a millennium later, virtually none were in wide use in most of the world. What happened?

Climate, demographics, social mores and superstitions are a few of the reasons historians and anthropologist’s offer as evidence for the loss of ancient healthcare techniques. Today, we believe that living in advanced modern societies we will improve and perfect new care techniques and each subsequent generation will live better, healthier lives than previous generations. Unless we learn the lessons of history there is no guarantee that we might not revert to a Dark Age lifestyle.

Currently there is a world economic crisis. If we had studied and learned from past economic calamities much of the pain being suffered by the worlds economy could have been mitigated. The fact is we often ignore or forget the lessons of the past. The bubonic plague of the middle-ages would most assuredly have been mitigated if society had utilized hygienic procedures perfected by the ancient Egyptians and Romans. Manias like Holland’s 17th century tulip-mania, South Africa’s milk culture scheme, Ponzi schemes, and countless modern recessions and the great depression all germinate from the same seeds: greed, fear and a lack of historical perspective.

Societies do forget. Governments do forget. Groups and individuals do forget. The ancient Egyptians gifted the world with many advances in engineering, construction, science, health care and art. These lessons were largely lost in subsequent centuries. Some, such as the mystery of the erection of the pyramids, have never been rediscovered. It behooves us all today to rekindle an interest in history and ancient creativity.

by: Geoff Ficke

Virtually every modern household has a basic wheelbarrow stored away. The use of the wheelbarrow is ubiquitous in construction and basic home chores. The design, form and function of the wheelbarrow has not appreciable changed for 700 years. And yet, this simple tool is one of history’s great advances in creating labor productivity.

No one knows who invented the wheelbarrow. The Chinese used crude, primitive sorts of wheeled carts, similar to the modern unit, as early as the 1st century. It wasn’t until the 13th century, however, that the type of wheelbarrow we now recognize and utilize was known to be in common use.

The forward and centered placement of the wheel made the modern unit more practical to use. One man could leverage and control much more weight with the new version. Historically it took two or more men, using flat stretchers to move heavy material loads. This made construction very labor intensive and slow.

Use of the wheelbarrow was an efficient new method of speeding the construction of the great edifices constructed all over Europe in the Middle Ages. It is quite possible that many of the architectural wonders we enjoy to this day would look very different, and have much smaller scale without the employment of the basic wheelbarrow. Notre Dame, St. Pauls Cathedral, or Windsor Castle would most assuredly not be the wondrous edifices that amaze and thrill us if not for the simple, but essential use of this mundane tool.

The invention of the wheelbarrow resulted from the simple rearrangement of already existing components. The wheel existed. The barrow existed. The principles of leverage were well known. Nevertheless, these elements were not co-mingled in one unit and perfected to become the useful advance in labor saving and productivity that we use to this day until someone creatively addressed this need.

The 21st century presents the creative, entrepreneurial class many opportunities to address and solve real needs. There has never been a better time for the commercialization of new products and services. All over the world inventors, engineers and companies are striving to discover answers and solutions to health, energy, resource, agriculture and material needs. The rate of innovation accelerates each decade. The world is a better place for this bustling outpouring of energy, courage, investment and creativity.

The simple wheelbarrow is a metaphor for progress. This most basic of tools has performed yeoman work for centuries. This invention is a model for modern inventors. Identify and solve a basic need that is present in your personal, social or work universe. Answering real needs with simple solutions can provide the path to fame, fortune and personal satisfaction.

The consumer is the ultimate beneficiary. Life is improved each time a new product is introduced that offers better features and benefits than are currently available. A modern truism is this: “Never the greatest, only the latest”. Novelty and fresh takes on old products are always in demand.

by: Geoff Ficke

As we slog along under the full weight of the current financial calamity, there is much weeping and gnashing of teeth about the future of the United States. Many of our countries fiercest enemies and critics are gloating over their perception that our wave has crested and we have entered a period of steep decline as an economic, military and cultural power. Amongst the citizenry, there is a palpable sense that the country is on the wrong track. In reality this has ever been so.

The 19th century Canadian politician Wilfrid Laurier once famously spouted, “the 19th century was the century of the United States. I think we can claim that it is Canada that shall fill the 20th century”. Oh really! Now I love Canada and Canadians. They produce wonderful comedians like Jim Carrey, John Candy and Rick Moranis, great hockey players, the moose hunting is amazing and Labatt’s is a terrific brew. The Canadians prospered nicely in the 20th century, but by any measure Mr. Laurier’s observation was classic balderdash. He is but one of a long chorus of critics that prematurely dismissed American prospects to their regret and embarrassment.

The current President of Russia, Dmitry Medvedev has blamed the United States solely for the global financial crisis, assigned blame for Russia’s thuggish unilateral military invasion of tiny Georgia on American policy and stated that America would descend to second tier status as a global power. This from the leader of a country with a declining population, staggering levels of alcoholism and drug abuse, clepto-capitalism, a military hobbled by desertion and archaic weapons systems, declining productivity and a complete lack of innovation. How bright is the future of the average Russian eking out a living in Vladisvostock?

There are always doubters and cheerleaders fueling the notion that America is in decline. The Soviet and Eastern European Communists, for 70 years predicted they would overcome us. Nikita Kruschev famously shouted at the United Nations, “we will bury you”. Saddam Hussein and Al Qaeda believed that we would never stand and fight; shedding blood and treasure, just to preserve our freedoms. Hussein is dead and Bin Laden is hiding in a cave as a result of their misjudgments and fundamental misunderstandings of our resolve.

American uber-leftists like Michael Moore and Noam Chomsky travel the world trashing the United States. The capitalist system that has enabled the country to prosper and made the Moore’s and Chomsky’s rich, is continually denigrated and blamed for every perceived malady we face. Capitalism is not perfect. It simply is the greatest engine for economic prosperity ever yet developed.

Why will America emerge from our current difficulties with a brighter, stronger future outlook than so many of our critic’s project? Simply put, America has the ability to adapt and re-invent itself like no other country or culture in history. We are more receptive to immigrants than almost any other country and they constantly infuse the land with energy, creativity and continually stir the stew that makes the United States so unique. Our society is the most fluid in the history of the world. New ideas are always emerging. America’s unique vitality separates us from most other countries that have static state centered economies.

There is no place on earth, at any time in history, where entrepreneurial activity is so valued and pursued as in America. This constant blast of creativity bears fruit in so many beneficial ways. Through hard work, novelty and inventiveness, utilizing the capitalistic economy, rule of law and property rights, entrepreneurs have the potential to build enterprises that provide products and services, profits, employment and social benefits that make America uniquely dynamic. Times are tough, but the will to succeed is irrepressible.

Another reason the future for America is so bright in my estimation is our ability to laugh at ourselves. This country has many sourpuss types, doomsayers, negativists and self-haters. However, these “nattering nabobs of negativism” are overwhelmed by the sheer volume of Americans that revere the country, appreciate her innate precious goodness and have the ability to laugh at our collective foibles and faults. This is a trait of which we can, and should be proud. It is a trait that is found almost nowhere else in the world.

We have survived wars, depressions, natural disasters, and terrorism. The fiscal difficulties we currently confront are in large part self-inflicted. We have not been diligent in demanding that our government act prudently over the last 75 years. We spend too much and save too little. We want much more than we need. We confuse greed and envy with comfort and safety.

The country also just elected a black man, a minority, to be President of the United States. This could only happen in America. Could a North African rise to such heights in France? Could a Turkish immigrant achieve the equivalent office in Germany? Could a Filipino laborer rise to these heights in the Middle East? Of course not! This country, its values and opportunities, is the beacon of hope that ordinary people all over the world aspire to emulate.

This is a wonderful time for each of us as citizens to take stock of our personal and societal situations and adjust to a reality that is based on real needs, not the irrational pursuit of materialism. We must demand that politicians stop bribing us for our votes with promises of benefits that some future generation will be saddled with paying for. This is the best possible time for Americans to reflect, adjust and re-energize this wonderfully dynamic country.

by: Geoff Ficke

Cement is the most widely used building material in the world and has been for thousands of years. The historical record confirms that the ancient Persians, Assyrians and Babylonians used cement in the binding and affixing of mud bricks. The Egyptians also used cement in construction. It was the Romans, however, that perfected the production of slaked cement that made many construction advances possible.

The basic materials that the ancients used to make cement were readily available, then as now. Sand, water and rocks, the basic ingredients in cement, are essentially found anywhere in the world. The first great advance in the evolution of the production of cement was the Roman invention of the pozzalana technique. The Romans found that volcanic ash from Mount Vesuvius, when mixed with slaked lime; sand and water produced an amazingly versatile type of cement. It was easier to work with and delivered much greater strength than previous blends.

Many of the monuments and buildings so gloriously built by the ancient Romans, standing to this day, benefited from the perfection of pozzalana cement. Hadrians Arch, the Forum, the Roman Baths, the Appian Way, the Church of Constantine and many more edifices were strengthened utilizing this simple, but essential construction product. The proof of the utility of pozzalana cement is on display every where you look in modern Rome. Ancient walls of pozzalana cement as thick as 12 feet have been discovered at a number of Roman archeological dig sites.

Amazingly, the secret of pozzalana cement was soon lost and was not re-discovered until the 18th century, when the scientific age of discovery was in full bloom. The lost recipe for Roman cement was re-invented and continued in use until Portland cement was perfected in the 19th century. Portland cement is the gold standard product for building material to this day.

For almost 1500 years builders were limited because an ancient method of improving simple cement was lost. We know that many of the inventions of the ancient world went extinct as well. Bathing and personal hygiene became rare, directly contributing to advance of disease and the great Plague.

Running water and sanitation systems, common in ancient Rome, were lost and did not reappear until the late middle ages. Agriculture techniques, brewing spirits, military organization and strategy, road building and trade routes were lost for centuries as well.

Today we take much for granted. We assume that things will always be convenient, food prevalent, choices abounding and affordable. The lesson of history is that this is not necessarily so. Societies do recede. Knowledge can be lost. We must protect and value our freedoms, knowledge, science and creativity.

Today, in a good portion of the world, the populace lives much as the most backward ‘burgher of the Dark Ages lived. Subsistence farming is prevalent. Clean water is not available. Hygiene is unknown. Basic medical care and drugs are not to be found. These populations do not choose this bleak existence, they have simply never known anything else but the horrid grate of endless poverty, ignorance and hunger.

In other areas of the world, owing to religious or societal mores, there is no desire to live a modern lifestyle. The whole goal is to live as if the year were 908 rather than 2008. In too many instances, unfortunately and dangerously, these populations not only wish to live lives of physical deprivation but they want the rest of us to be forced to accept their hatred of modernity and be forced to share their aversion of contemporary comforts.

The inventions that the Romans perfected and left for subsequent generations were soon lost. The world went into a period of darkness. Creativity and science went into torpor. It could happen again. It could happen to us if we let down our guard and allow our advances and knowledge base to wither and decline. It will happen if some fanatics have their way and can force their ideology on peoples not appreciative of their freedoms. Freedom isn’t free and gains can easily be lost.

by: Geoff Ficke

The world is currently fixated on the international credit crisis and the role banking has played in this debacle. We take it for granted that commerce flows quickly and accurately across borders and frontiers. A resident of Maine can purchase a tank of gas at home, or in Italy with the same credit card. The purchase will be accurately debited to their account, their credit limit will be adjusted and the merchant will receive an electronic transfer of the charge into their account almost simultaneously. This type of commerce happens many millions of times each day and we take its simplicity for granted.

The history of the rise of organized banking is a bit more plodding and evolves from a most unlikely source. Today our knowledge of the Knights Templar is garnered mostly from popular culture such as the Indiana Jones movies. The history of this iconic fighting force, and their evolution into the first international commercial group of the middle ages is as amazing a tale as can be told in any fictional movie or novel.

The Knights Templar was formed after the initial Christian victory in the First Crusade to take Jerusalem from the Muslims in 1099. Pilgrims from all over the Christian world wanted to make the pilgrimage to Jerusalem and the Holy Land. However, travel at that time was exceedingly dangerous. The Knights Templar was first organized as a monastic order to protect the pilgrims as they traveled. They took a strict vow of poverty.

Over the next 200 years the order flourished and developed into a renowned fighting force. With their sturdy mounts, white hooded tunics displaying the Red Cross, and shiny armor, they lead the way into numerous battles against the enemies of Christendom. The vow of poverty was strictly enforced, but many royal and noble families delivered their sons to the Knights Templar to curry favor with the Papacy of the Catholic Church.

The Knights Templar enjoyed favored status with popes and archbishops from all over Europe and North Africa, for their reverence, gallantry and honesty. They were often rewarded with alms, farms, lands and livestock. Their power grew as the public recognized the special relationship they enjoyed with the clerical hierarchy of the Church.

Many pilgrimage makers came to depend on the Knights Templar to hold their valuables in safekeeping as they made the difficult journey. The order created secure safe storage facilities at strategic locations along the most used routes. They developed a type of written chit that verified that they held certain monies and valuables owned by the bearer. Upon arrival in the Holy Land, the bearer could visit a Knights Templar outpost, present their receipt and receive monies, bullion or goods in kind, the equivalent of that left behind in the order’s care.

This was the first form of bank cheque and was probably the earliest form of organized international banking. The system evolved as the Knights Templar gained vast new riches, even though they were still vowing to live a life of poverty. Previous to their development of rudimentary banking products most trade was accomplished by crude barter. They became the richest entity in the world at that time and began to suffer the increased scrutiny of their historic protectors in the Catholic Church.

By the 14th century, the church moved to disband the Knights Templar and martyred many that were captured. The order became a secretive underground society and rumors of their activities and continued existence are legend to this day. The locations of the lost gold, silver, jewels, art and religious artifacts that the Knights Templar acquired and hoarded in their many adventures is also the stuff of fables and lore. The lost Holy Grail, and all of the fabulous tales attached to this famed relic from the Last Supper, is often connected to the Knights Templar.

The commercial activity that the simple, novel creation of a system for verifying bank guarantees is actually the Knights Templar’s greatest contribution to mankind. This simple transactional device has proven far more valuable historically than their military conquests and reputation for living pious lives. It is certainly not what they are best known for. But it is an invention that has positively effected commerce and productivity to this very day.

by: Geoff Ficke

One of the most illuminating professional experiences of my life was my first visit to the elegant center of British Bespoke male haberdashery, Saville Row in London’s exclusive Mayfair district. I was a young man, just starting my career in the international cosmetic business and, while knowing of the worldwide reputation for excellence of English hand tailored gentleman’s clothing, I had never experienced this level of quality and artisan craftsmanship. I was building my wardrobe from off the rack suits purchased from American department stores.

On my very first visit to London in the early 1970’s, I was most anxious to window shop the famous little alley known worldwide as Saville Row. Tucked inauspiciously behind the much more commercial and busy Regent Street, the languid pace and understated elegance of the short street was a shock. It seemed almost as if the tailors and shop proprietors were trying to avoid successful commercialization. The shops were small, signage was petite and inauspicious and window displays were presented as simply as possible. The full focus was on the vast array bolts of cloth in endless colors, patterns and weights, classic tailoring and quality bespoke customization.

I was mesmerized but dared not enter a single establishment. The next day, at breakfast, my English distributor asked what I had done and seen during my free day in London. I described my walking tour of the amazing cities streets and my fascination, in particular, with Saville Row. My agent asked if I was going to make an appointment for a fitting with one of the tailor’s. “Of course not”, I replied “Saville Row level of bespoke tailoring is a little out of my range”.

For the next hour my agent became my tutor on the fine points of owning a quality British gentleman’s suit of clothing. He insisted that it was not a daunting experience or pretentious for a young American to enjoy what English gentlemen took for granted when assembling their wardrobes. More importantly, while the bespoke suit may cost more initially, it will provide much better value because the superior custom fit, quality fabric and hand craftsmanship will insure that the suit will wear much longer and provide a much better fit than any off the rack garment ever could. He suggested we make an appointment with his Saville Row tailor, and so we did.

The term “bespoke” is so very British. It simply means “to be spoken for”. In other words a bespoke suit is built solely for a specific client’s unique body shape and personal preferences. Saville Row tailors keep meticulous records of every client’s sizes, styling preferences, cloth and color choices and accessories. Each fitting is treated as the most important fitting the tailor will ever perform, because it actually is!

My first bespoke suit was tailored for me at No. 1 Saville Row, the famous address of Gieves & Hawkes. This, most famous, and typically British institution traces its origins to the late 1700’s. The firm is the holder of numerous royal warrants and has served customers ranging from Napoleon Bonaparte, to Winston Churchill, Charlie Chaplin, to David Beckham. After 250 years in business in London, Gieves & Hawkes still tailors less than 1000 suits each year.

The shop has had many offers to mass produce a line of suits and sportswear that could be sold internationally in huge volumes. The owners have stringently avoided taking this route. The Gieves & Hawkes brand, so assiduously and painstakingly nurtured and harvested for generations, is not to be tinkered with.

We live in a world where millions of consumers can, and do, enjoy the fruits of mass production, economies of scale and international distribution logistics that make these products affordable and readily available. This is a blessing for all of us. However, it is a comforting thought, that old world, hand crafted, prideful products, such as the bespoke tailored gentleman’s clothing lovingly sewn by Gieves & Hawkes, and other Saville Row firms are still on offer to those who wish to choose quality over quantity.

by: Geoff Ficke

This weekend my wife and I took in a movie. The film was preceded by a movie trailer touting a soon to be released production based on the invention of the “intermittent windshield wiper”. Such a topic for a big budget Hollywood movie would seem to be awfully mundane. However, the trailer was a very interesting glimpse of a subject that has deep meaning for every entrepreneur, inventor or dreamer.

Robert Kearns was a university professor and an engineer with a passion for tinkering. He had lost the sight in one eye when a champagne cork had popped squarely into his eye. In 1963, while driving in a heavy rainstorm he noticed that the steady, constant pace of the wiper blades sweeping water from the windshield caused his sight to lose focus.

At that time windshield wipers only worked at a single rate of speed. As mist, or light rain occurred the driver had to manually tune off and on the unit to control the speed of the blades. Kearns had stumbled into an opportunity to address a fairly basic, but needed improvement to an already existing automobile safety feature.

At home in his workshop, Mr. Kearns created a prototype of his “intermittent windshield wiper” system. Once perfected, he filed for patents and began to approach the major American car companies seeking to license his invention. He demonstrated the unit for Chrysler and Ford, and provided each with proprietary data on his device. After internal discussion both advised Robert Kearns that his device was of no interest and they would pass on the opportunity to license.

Much to Mr. Kearns shock and chagrin, he was amazed to discover that in 1969 the Ford Motor Company began to sell an “intermittent windshield wiper” as a featured accessory on their new models. The technology was remarkably similar to his prior art. Thus began a legal odyssey that would consume Robert Kearns life, his fortune and his health.

This is where this tale has ongoing importance to anyone seeking to commercialize a new product or invention. The invention of the original mechanized windshield wiper was the birth of a “divergent product”. The invention of the telephone, the television, the radio, or the internal combustion engine gave birth to “divergent products”. They created alpha opportunities. The addition of color to televisions, answering machines to telephones and clocks to radios are examples of “convergent products”. “Convergent products” are simple product enhancements that are often extremely valuable as wealth generators. Robert Kearns “intermittent windshield wiper” is a wonderful example of a “convergent product’.

He had not invented the windshield wiper but had created simple performance elements that motorists found would add safety, comfort and simplicity to driving in varied climatic conditions. Unfortunately, he had not fully insulated his invention from predatory commercial vultures.

Patent law is an extremely specific practice. There is a reason patent attorney’s typically handle no other categories of legal work. The Kearns vs. Ford Motor Company patent suit was arduous and tortured. The patent law principal of “obviousness” was the center of the dispute. Ford claimed that the Kearns invention was “obvious”, a device made up of pre-existing components. Simply put, Kearns argued that it was his organization of these elements that was truly novel and that his unit was not “obvious” until he invented it.

It took until 1995 for Robert Kearns to prevail. The case is considered a landmark. The instance of a single person taking on a huge, international corporate behemoth, and winning, was amazing, exciting and myth shattering. Ford paid Mr. Kearns $30 million. Robert Kearns spent $10 million on legal fees to fight the case to successful conclusion.

There are many lessons here for inventors seeking to commercialize their ideas and products.

• Protect your intellectual property
Utilize Non-Disclosure Agreements
Seek professional legal assistance to file patents, trademarks, copyright
File Trade Secrets
• Lay down a paper trail
Detail every meeting and phone call with a written re-cap to each
person attending
Save every dated receipt for FedEx, phone log, etc.
• Build a production quality, working prototype of the invention-DO NOT CUT CORNERS HERE!
• Include 3D Computer Assisted Design Art (CAD) with all legal filings
• Always assume that others are working on similar inventions and protect
your interests

We look at hundreds of inventions and new product submissions each year in our consulting business. A fair percentage of these presentations have real commercial value and could be successfully marketed. Most however, will never see a store shelf because the creator will not take appropriate steps to protect and commercialize their opportunity.

Robert Kearns did. He had a simple idea for a “convergent product”. He took appropriate steps to protect his invention. When he was ripped off, he took up the fight. Because of his success and courage, it is now much easier to fight and win against the “big guys”.

Each of us sees or experiences opportunities almost everyday, in our work or personal environment. Most of us aren’t paying attention or do not recognize opportunity when it appears. For the few that do, and have the courage to act, will be rewarded by a marketplace that craves new products and concepts.

I can not wait to see the movie.