What the Japanese Can Teach You About Adapting to Harsh Circumstances
In the mid-19th century, the United States was brimming with confidence.
Following its major victory during the Mexican-American War (1846–1848), the US was able to acquire vast territories in what constituted present-day Arizona, California, Colorado, Nevada, New Mexico, Utah and Wyoming. But the US was not satisfied with its new territorial gains.
It started looking elsewhere in order to expand its influence. At the time, Japan looked like an attractive option. Indeed, Japan was isolated from the rest of the world through its isolationist foreign policy of sakoku. Previously, the Dutch, Portuguese, and Spanish traders were engaged in commerce with Japan throughout the 16th and 17th centuries. In addition, missionaries from these countries tried to convert the Japanese to Catholicism. The combination of zealous proselytization and European merchants using questionable trade practices compelled Japan’s rulers at the time to close off the country to outside contact.
The policy of exclusion (sakoku) came into effect in 1603. By contrast, the US wanted to change that. In 1852, US President Millard Fillmore assigned Commodore Matthew Perry to open up Japanese ports to US trade. Perry was instructed to even use gunboat diplomacy if the Japanese did not comply. On the fateful day of July 8, 1853, American Commodore Matthew Perry sailed his four ships into Tokyo Bay’s harbor. The purpose of Perry’s naval expedition was to normalize trade and diplomatic dialogue between Japan and the Western world.
Perry wanted to show off America’s advanced firepower in an effort to intimidate the Japanese and compel them to open up to American trade. Gunboat diplomacy 101.
However, Perry did not come with pure aggression. Taking the carrot and stick approach, Perry brought gifts to the Japanese government which included a telegraph, a telescope, a model of a steam locomotive, and several alcoholic beverages from the West, to demonstrate the perceived superiority of Western civilization.
The commodore also presented the Japanese delegation with a letter which stated that his naval units would use force should the Japanese resist. Perry would then leave for Hong Kong, vowing to return to Japan the following year awaiting the Japanese response.
In the spring of 1854, Perry came to Japanese shores with an even larger squadron to obtain the Japanese government’s response. The Japanese government eventually relented and the two parties signed the Treaty of Kanagawa on March 31, 1854, thereby ending Japan’s well-established policy of isolation. Per the treaty’s terms, Japan was obligated to protect stranded seamen and open two ports (Hakodate and Shimoda) for the purpose of refueling and supplying American vessels. Under this treaty, Japan also granted the US the privilege to appoint consuls to live in Hakodate and Shimoda. This was a privilege that Japan never conferred to foreign nations.
On top of that, the treaty featured a most-favored-nation clause. In other words, any future concessions Japan granted to other foreign nations would also be granted to the US. The Treaty of Kanagawa would be the first major step towards facilitating additional American diplomatic and commercial interactions with Japan.
This opening of Japan was one of the most momentous events of the 19th century. It compelled the Tokugawa shogunate to finally reform and modernize all facets of its society. This Tokugawa shogunate was followed by the Meiji Restoration (1867–1912), which witnessed Japan go from a backward agricultural society to an industrial power by the start of the 20th century. A truly remarkable transformation.
Epoch-defining events are few and far between. But when they go down, they bring about irreversible changes to our daily lives that forces us to adapt. Failure to adapt inevitably leads to stagnation and eventual demise. Just look at the COVID-19 pandemic. Due to the disruption the pandemic and governments’ responses to the pandemic caused, millions of people opted to search for greener pastures.
In plain English, Americans are moving to cities and states with a lower cost of living. America is experiencing a return to Suburbia of sorts. It’s one of the largest demographic transformations that’s going underway. And it’s irreversible. This trend has been brewing for decades and has only been accelerated since the outbreak of COVID-19.
As empowered investors, this is a gold mine of an opportunity. Trust me on this. Regardless of the economic situation, the home is still the center of the universe. The present economic “re-sort” is compelling people to make tough choices. However, when the rubber meets the road, people need a place to live. Harsh economic circumstances simply forces people to downsize.
In America’s current economic situation, people are heading towards linear markets. These are the less sexy markets such as Jackson, Mississippi, Knoxville, Tennessee, and Mobile, Alabama just to name a few. These markets are in tenant-friendly states and generate steady cash flows for income property investors.
Just like the Japanese when confronting Western powers in the 19th century, you, my fellow empowered investor, are going to have to adapt to the new circumstances in front of us. If you don’t, you’ll get blown away. Game-changing resources like The Empowered Investor Inner Circle will provide you the tools to adapt to the new economic environment in front of us and make the most of your income property investing endeavors.
At the Empowered Investor, you will gain access to our network of seasoned real estate investors. They and I will teach you how to maximize your return on life. We will focus on the acquisition of income properties in linear markets where you can get good tenants who will help you pay down your mortgage debt.
By joining the Empowered Investor community, you will gain this knowledge and other game-changing real estate investing tips that will bring in steady cash flows to make your income property investment portfolio rock-solid.
My regular podcast show features great content, but at the Empowered Investor Inner Circle you’ll obtain content that you will never find on my free shows. It’s the kind of knowledge that will elevate your real estate investing game and make you financially sovereign in the process.
Joining the Empowered Investor Inner Circle is a once-in-a-lifetime opportunity that you should not pass up.
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In my Real Estate Wholesaling Group Mentorship, I will be hammering this point home among others.
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