It is easier to understand the micro environment by defining the macro environment first. A macro environment is the environment that exists on a much larger scale than your immediate surroundings…perhaps all the way to a national or global level. I am talking about on an international and national level for events that are transpiring. You could also easily include events occurring on a state and maybe even a county level as being part of that macro environment.
The micro environment is much closer to you; that which you have more control over and that which generally has more effect on you. Everything within your immediate surroundings; within eyesight is in the micro environment. Everything that takes place in your home, neighborhood, congregation, and probably even in your city all exists in your micro environment. But for our discussion, for the most part, I will refer to that which is within eyesight when referring to the “micro” aspect of the environment.
So exactly what is the “knowledge” and the “everything” that I referred to earlier?
To simplify it we can refer to both terms as “stimulus” and maybe more correctly, “stimuli.” But either way, it is sensory input that we receive as humans via the basic five senses; sight, hearing, taste, touch, and smell. But I am going to add a sixth sensory input in there as well. Some call it “instinct”, others call it “gut feeling”, some others call it the “still small voice.” Whatever you choose to call it is fine with me; I will call it “instinct” for this discussion. Although, I am more disposed to the “still small voice” description but it is too long of a term for writing an article…and requires some additional explanation and discussion that is best left for another time and place.
So everything that we can sense in our environment is the input which we process and then it becomes knowledge. Once we have that knowledge we then can estimate what the various outcomes might be. Based on the probabilities of success of the various outcomes we choose an action, and then take action.
I place all of this process under the single label of Situational Awareness (SA).
Now that we have suffered through defining SA, why is SA good to have? With good SA and a solid understanding of L.I.P.S. you can make great decisions and take actions that will keep you and your family, or team, thriving and out of danger.
Why is the lack of SA a bad thing? Simple, in an emergency, disaster, or especially “grid-down” if you don’t have good SA you will die. And all of your family or team will probably die along with you. I am not sure about you, but death is not high on my priority list.
Let me give two example of SA; micro and macro while being a bit melodramatic.
First comes the micro environment. You are in a “grid-down” situation, you are out scavenging for fuel, you turn the corner and there are three bad guys. You recognize them as all being bad guys from earlier run-ins, you know they mean business. One is about 50’ from you and has a pistol in his hand, arm hanging by his side. The second is about 125’ from you and has a shotgun cradled in his arms. The third guy is about 175’ from you and has an AR-15, maybe an M4, slung in the low ready position; appears to have a 30-round magazine in place. They are all looking away from you by about 90 degrees so you have maybe 1 – 2 seconds of lead-time on them.
Who is your biggest threat and whom do you shoot first?
Make your choice and outline your reasoning before continuing.
So, let’s talk it through the way I see it:
- The guy with the pistol is 50’ away from you and 50’ is a longer distance for the average person (even a well trained individual) to accurately fire a pistol and hit a target…especially under the stress and pressure of a gun battle. This is especially true for someone having to make a “snap” shot. So in my way of thinking he is not a real big threat right away…at least not the #1 threat.
- The guy with the shotgun has it cradled in his arm so it will take him a second or two to bring the shotgun into play. Also, it is almost a 42 yard shot for him and a standing “snap” shot at that. At 42 yards if he has it loaded with birdshot you can probably live even if you are hit. Also, most people are not accurate at that distance, especially with an adrenaline rush of a gun battle hitting them. So while being shot with a shotgun is not fun, it will hurt, you are more likely to be hit with a shotgun pellet than from a round fired from the person with the pistol. So he does represent a bigger threat than the pistol carrier.
- Now we have the guy with the AR or M4. First, the fact that he has it slung in a low-ready position indicates that he knows how to “wear” his weapon. Holding it in the low-ready indicates that he has some amount of training in weapons handling and tactics. The 30-round magazine indicates that he has a lot of rounds he can throw at you as fast as he can pull the trigger. Or, optionally he may be able to let loose a fully automatic burst at you. To me, this guy is without question your greatest threat. You better accurately throw a lot of lead at him as fast as you can to take him down or get him to run.
- Seek cover! You would factor in any cover that might be available to you. Actually, this should probably be your first choice. They can’t shoot you if they can’t see you and/or they can’t get a round into you. So your best bet might be to run for cover vs. standing there and having a shootout with 3 against 1 odds against you.
So there is your micro environment along with its sensory input. Once you absorb that input you process it into meaningful knowledge, decide on action options, choose one of those options and put it into play. OODA at work!
Let’s touch on a macro environment scenario now. Times are tough, unemployment is high, banks are troubled, the government is getting more and more tyrannical, and you are hearing the TV talking heads blather on about economic instability and devaluing of the dollar. You have money in a Fidelity IRA, a couple thousand in a BoA account, and your paycheck gets direct deposited. You wake up in the morning and there is a “News Alert” on TV referencing the President talking about the possibility of a bank holiday to straighten out the economic and dollar problem. He says it’s no big deal and it would only last a day. Most of the TV talking heads praise him for such a bold move. The stock market opens 10 minutes later and drops 350 points in the first 5 minutes, another 500 points in the first hour.
What is going on, how important is it and what do you do about it?
Well, let’s talk it through:
- Times have been tough for a long time now and really tough since 2009. Since the pandemic hit in early 2020 the economy has nose dived and unemployment is at historic depression era levels. So there isn’t a lot different here.
- We’ve had the lowest labor participation rate for quite a while now, and it has been getting steadily worse since 2009. Since the pandemic…is it at historic levels. While the unemployment rate has been going down it is mostly based on people being hired for low-paying jobs, part-time jobs, and fewer people looking for work. So nothing major or new here either…until the pandemic hit.
- The government has been getting much more tyrannical since 2001 in the areas of regulation and militarizing of police. So there isn’t a whole lot new here either.
- The value of the dollar moves up and down, but it has been fairly strong for quite a while. Mostly this is due to other currencies going down in value. But “devaluing” the dollar is a serious big red flag. This means that the dollar is about to make a big move (maybe already has) and it is almost certainly to be a downward move. This is a key piece of information.
- Hearing the phrase “straighten out the dollar” is a huge red flag. That indicates that something is wrong with it and something has to be done to correct it. This is a key piece of information.
- If you ever hear the phrase “bank holiday” mentioned in the US, especially by someone in government, you should be extremely concerned about what is happening. This indicates that the entire US economy and financial system might be about to be completely changed. And there is a very, very good chance that any money you have in any form in the bank or similar financial institution is in jeopardy. In jeopardy as in being taken from you, especially IRA and 401k kind of money. This is an extremely key piece of critical information.
If you don’t act on that information what can/could happen? What actions can you take to minimize potential losses?
So, let’s talk it through the way I see it:
- You can’t make any significant move that would have an immediate change in your paycheck being direct deposited.
- If you take money from your IRA it will be taxed and penalized…and will take some time…days to maybe hours. While to can’t take any immediate action with the funds you could take a medium term move and transfer some, or all, funds into a local credit union IRA. By doing so you don’t suffer any taxes or penalty and the funds are closer to home and more readily available if needed in the future.
- The money in the BoA account is readily available. You could withdraw it and keep cash on hand. Or, as an option, take the cash and purchase a combination of precious metals (golds/silver).
So, you have just been exposed to micro and a macro environment form of stimulus input. The micro environment issues and risks tend to be dangerous and more probable in general. Macro environment issues can be just as dangerous, sometimes far more so, but less probable overall to occur. And macro can also be more widespread. In other words, both micro and macro can affect you but macro can affect a whole bunch more people at one time.
Why is knowing the difference between micro and macro important? You gotta know the risks to both, know what to watch for and understand the potential impact of both while putting them into perspective. Or…you just can ignore SA and follow the other sheep into the abyss.
Yeah, sorry, I am saying you gotta “think” about important stuff not just some NFL score for your favorite team on Sundays.
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