International Investments in International Income –The Ultimate Protection


International investments are urgent for your future! An alert reader sent me an article written by Congressman Ron Paul that stresses the importance of having international investments. Congressman Paul’s continual warnings about the upcoming economic morass should not be ignored. His article is entitled “The Coming Entitlement Meltdown” and dated March 5, 2007. Here are excerpts from this article:

International Investments Excerpts #1:

“David Walker, Comptroller General at the Government Accountability Office, appeared on the show ‘60 Minutes’ last evening to discuss the federal budget outlook. If you saw the show, you know that he painted a very sobering picture regarding the federal government’s ability to meet its future obligations.

“If you didn’t see the show, Mr. Walker’s theme was simple: government entitlement spending is like a runaway freight train headed straight at American taxpayers. He singled out the Medicare prescription drug bill, passed by Congress at the end of 2003, as ‘probably the most fiscally irresponsible piece of legislation since the 1960s.’

“When it comes to Social Security and Medicare, the federal government simply won’t be able to keep its promises in the future. That is the reality every American should get used to, despite the grand promises of Washington reformers. Our entitlement system can’t be reformed- it’s too late. And the Medicare prescription drug bill is the final nail in the coffin. The financial impact of the drug bill cannot be overstated. Government projections that the program would cost $400 billion over the next decade were a joke, as everyone in Congress knew even as they voted for the bill. The real cost will be at least $1 trillion in the first decade alone, and much more in following decades as the American population grows older. The official national debt figure, now approaching $9 trillion, reflects only what the federal government owes in current debts on money already borrowed. It does not reflect what the federal government has promised to pay millions of Americans in entitlement benefits down the road. Those future obligations put our real debt figure at roughly fifty trillion dollars- a staggering sum that is about as large as the total household net worth of the entire United States. Your share of this fifty trillion amounts to about $175,000.”

The message is clear. We should not depend on our pensions or our social health plans. We need international investments now.

This is why Merri and I have been writing about international investments and earning globally for three decades.

This is why we have international investments in and write about non US dollar multi currency portfolios. The US will devalue its currency as it tries to meet social obligations it cannot afford.

How bad is this devaluation? Even the Russians are becoming afraid of the greenback. Here are excerpts from the article

“The Dollar Goes into a Free Fall” By Dmitry Dokuchayev, The Moscow News

International Investments Excerpts #2:

“The U.S. currency continues to lose ground against other world currencies. What should Russian holders of dollar savings do?

“Russian: Бедный доллар

“On Monday, the Central Bank of Russia fixed the dollar’s official rate at 26.20 rubles. Thus, the dollar lost 16 kopeks last week, and has since continued its free fall. One might say that the U.S. currency’s ruble rate has slipped back to 1999. As recently as January 2003, the dollar was worth 31.88 rubles. Since then, it has lost 5.5 rubles, including two rubles (or 7.5%) in 2006 alone. Presumably, it is not without satisfaction that the Central Bank of Russia has been supporting the exchange rate trend on world financial markets. For if the dollar becomes cheaper, the CBR will pay less for dollars on the currency market, thereby curbing inflation. What is extremely important at the moment is that Russia’s monetary authorities are closer than ever to bringing down inflation to a record low of nine percent toward year-end. Admittedly, an excess strengthening of the ruble would be to the disadvantage of Russian producers, as their products would lose their competitiveness; it would also be disadvantageous to our exporters, who sell their goods for dollars, but pay wages and taxes in rubles. We need not be overanxious about our exporters, though: Any losses they incur on the currency exchange rate are more than compensated for by high oil prices, which have bounced back after brief period of decline. A couple of years ago, it would have made sense to sympathize with those citizens who keep their savings in the American currency; there is no need to do that now. The dollar has been in decline for quite a while, and dollar depositors have sized up the situation and decided whether to switch to the euro or the ruble, or to retain their dollar savings regardless.

“What turn will developments take on the currency market? According to Yaroslav Lisovolik of Deutsche UFG, substantial disproportions in the U.S. economy will cause the dollar to continue its decline over the next few years. A year from now, a euro will be equal to $1.35 rather than $1.31 or $1.32. Accordingly, the dollar could fall to 26 rubles toward the end of this year, and to 25 rubles toward the end of next year.”

What more can I say. Even the Russians are now afraid to hold the US dollar. This should be a huge warning call. Make International Investments now.

Our courses Mar. 16 -18 International Investments and Business Made EZ Course in Ecuador will include two account executives from Jyske Bank who join with me to update global currency values and economics. We’ll do an in-depth examination of potential for Asian bonds at this course. See http://www.garyascott.com/catalog/IBEZec/

This course will cover updated international investments May 25 – 27, 2007 in North Carolina. Thomas Fischer joins me to update global economics there.

The five multicurrency portfolios we track hold almost no US dollars at all. You can learn how to track these portfolios with us at http://www.garyascott.com/catalog/bldh/

You can continue this message with pictures at http://www.garyascott.com/international_investments/265.html

Until next message may all you international investments be good.

Gary

You can read more horrifying news at Ron Paul’s website.


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