Ecuador Stage III Take Off


Ecuador in  Stage III

Yesterday’s message looked at how changes at the Fed, in Europe and the Middle East rebalanced  values quickly. Read about that at Value Prevails in Three Ways.

Other times values shift slowly such as they have with Ecuador real estate.

More than a decade an a half ago when  Merri and I arrived, Ecuador was in stage II  of economic development.  Real estate values were unbelievably good.

A great report at the North Virginia Education website outlines  how an American Economic Historian, Walt Whitman Rostow outlined five stages of economic development.

Stage I — Traditional Society. The economy is dominated by subsistence activity where output is consumed by producers rather than traded. Agriculture is the most important industry.  Production is labor intensive. There is minimal capital.

Stage II — Transitional Stage (the preconditions for takeoff).  There is an emergence of a transport infrastructure to support trade. Growing incomes, savings and investment develop entrepreneurs.

Stage III — Take Off.  Industrialization increases, with workers switching from the agricultural sector to the manufacturing sector.  The economic transitions are accompanied by the evolution of new political and social institutions that support the industrialization.

Stage IV — Drive to Maturity.  The economy is diversifying into new areas. Technological innovation brings increased investment opportunities. The economy produces a wider range of goods and services.   Reliance on imports slows.

Stage V — High Mass Consumption. The economy is geared towards mass consumption. The consumer durable industries flourish. The service sector becomes increasingly dominant.

Now Ecuador is shifting into stage III.

The changes bring some uppers and downers but overall is good news.

The Uppers

Ecuador is a very different place than when Merri and I arrived 18+ years ago.

A good example of the change can be seen in the recent handbook updates outlining new shopping centers in Ibarra and Bahia.

The beaches are empty and wonderful with sun year round.

Bahia photos

Normally when people think of Ecuador’s coast, they envision a beach like this one just north of Bahia,  that is about to begin. However shopping also on Ecuador’s coast is good and getting better.

These shopping centers in Quito, Guayaquil, Cuenca and Manta are coming to

Bahia photos

Bahia on the coast and also Ibarra in the north of Ecuador.

A parcel of land close to the Chone bridge in Bahia will be the site of Mi Comisariato.   Super Maxi is also in Ibarra and coming to Bahia.

Bahia photos

These are top of the line shopping centers with cinemas and all.

Bahia photos

 Super-Maxi

Bahia photos

El Paseo Mall 

Bahia photos

You can find the big ticket items like kitchen equipment, light fixtures for example, as well as most of the house cleaning products and food.

Bahia photos

This progress will make it a more attractive place for a larger number of people.

These centers make Ecuador more attractive to the growing middle class and to a new type of expat… the ones who want a Western lifestyle… places of commerce…. malls, cinemas, fast foods, golf courses… paved roads… the many features that the masses gravitate toward and Westerners take for granted.

This will increase the value of real estate… for those already there.

The Downers

The change makes a country less attractive to Merri and me… but we are a bit weird always out on the leading edge… looking for something new.  We know shopping malls.  They no longer offer us any sense of adventure.

Ecuador is becoming a place where you can live an enjoy all the Western creature comforts.

The cost of living is rising because of this.  Years ago one could live well on $750 a month. Now most of our Ateam Ecuador (in Cuenca, Quito, Cotacachi and on the coast) are suggesting that $1,500 a month is more realistic.

Stage III includes the evolution of new political and social institutions that support the industrialization.  I can spell this out in two words… increased taxes.

In the earlier stages of Ecuador, the expats were almost invisible as far as government was concerned.  No more!  Added government regulations aimed at expats are rising in many parts of life. Dan Delgado at dandelgado86@gmail.com sent a note about expats hiring domestic help (bolds are mine):

Domestica Digna Programs – Paying Benefits to Your Hired Helpers

Authorities are now enforcing laws that were instituted last year to convince everyone to affiliate their housekeepers and caretakers according to guidelines of the labor department (MRL) and Social Security (IESS). Whether seen as Progressive or Socialist, the laws are changing rapidly in Ecuador and codes and norms are being rewritten to conform to the new Constitution of 2008.

The recent amendments to the Constitution that address Social Security in employment law are meant to protect more people from ending up with no job security, medical insurance or retirement benefits. The new rules can seem complicated at first, and some of the disincentives for noncompliance by employers include fines of hundreds of dollars for not having a clear contract, if there is a disagreement brought to a labor court judge, and also the penalty is now potentially prison for not affiliating a worker with the IESS (social security) system.
 
New residents relying on information from local friends who are used to the old way of hiring help may find themselves in uncomfortable situations that could have been avoided by knowing the new rules and considering the risks and benefits from an informed point of view. For example, a worker can be signed on and off the system (on-line from your home) for a day or more at a time easily, once the employer is properly signed up. Otherwise now, if there is a “workplace” accident in your home, or some serious labor dispute, and the worker is found not to have been properly contracted and covered, the penalty for the “employer” may include prison.

Although if you look further into the following article you’ll see that it mentions legal assistance, there actually should be no need for a lawyer for contracting workers, unless you want to add some unique clause to the contract, which may then require special approval by a MRL (labor department) Judge. Several printable contract formats are available free on-line from this Ministry of Relaciones Laborales. It’s part of government, so information is free at http://www.mrl.gob.ec/ and they have an office a few blocks from Supermaxi in Ibarra.

Here is an excerpt from a story by a resident in Cuenca- from theGaithers blogspot on June 6, 2012.

“…learned the hard way. The very friendly maid went to a labor attorney after they declined to play the game of “another gringo will pay me twice what you are.”  That was a shock after months of gringo gifts and generosity.  A simple severance agreement was quickly drawn up and half a month’s pay was given as severance.
The rule of vesting is that on the 15th visit to work in your home, the maid is considered your employee. This applies even if she only works 3 or 4 hours a visit.

Even visits for family events or holidays (when no work is done) may be considered a labor visit…”

Reprinted from http://thegaithers.blogspot.com/2012/06/domestic-help.html
 
I hope to soon meet with a director of this MRL Labor Ministry, who is now leading teams from town to town, focused on informing domestic workers of their rights and ask her to make it easier for us all to know what the new rules and procedures are. Lately, there have been radio and TV “public service announcements” in Kichwa and in Spanish, inviting domestic workers and others to come and get information from MRL facilities, including MRL “mobile units”. The MRL-connected agents are also attracting Domestico/a’s with offers of free training in first aid and cooking and housework organization. Workers are encouraged to call 1-800-CONTACTO for lots of free information.

Formalization of these work regulations will be good for the workers.  Merri and I have worked hard to help domestic employment in Ecuador.  We paid special Social Security payments, that the previous owners had not kept up for our employees when we purchased Inn Land of the Sun.   The staff at the hotel earn much more than is normal (and we believe work much harder because of it).

These new regulations may help workers.  We are happy about that but  more regulations also mean more enforcement and… more tax plus higher costs of living. This is all part of Stage III economics.

We are concerned though about the number of new regulations that could produce a jail sentence.  These regulations are weighted against the expat.

Dan also wrote:  Sr. Ruminahui Andrango (aka Rumi), son of Cotacachi mayor and also head of the UNORCAC indigenous organization, says he will work on scheduling a public forum with people in the English-speaking community to explain local perspectives on issues of Indigenous Jurisdiction and Community Rules to us newcomers. He does not have a file or archive of each of the community’s rules for the many communities that he works with, although he does have a general Template of what these include, and can use this to begin explaining. The Ministry of Agriculture (MAGAP) is the entity that approves and files Community rules in the rural territories that the Indigenous have jurisdiction over. 

I asked Rumi whether people should be more cautious entering indigenous areas since a confrontation a month ago in the Indigenous community, La Rinconada, near Otavalo, where non-Indigenous people, who were there to purchase property, and their police escorts, were held overnight by the Indigenous community.

He answered that all outsiders should show more respect for these basically unpublished rules and loosely delineated community territories.  He said that because the Otavalo Municipal authorities had just recently received warnings from the community, this was a unique situation. The police, in this case, had their guns and uniforms removed and they were given a ritual bath treatment before being allowed to leave.

What a great way for the community to give these people who were trying to ignore hundreds or thousands of years of history a send off… with a purifying bath!

The fact that this issue is finally being addressed is important.  We urge readers who visit Ecuador to learn and respect these ancient cultures rather than try to ignore them and impose Western attitudes.  These resolutions are a vital part in stage three development… but will require increased government control (and cost).

Ecuador is a democracy so the ability to vote counts.  The indigenous population has a huge a voter clout!  Expats have almost non at all.

Traffic laws are getting tighter as well and could also lead to jail.

ecuador police

Traffic cameras are now being used in Ecuador and are moved around the country.  A photo of the speeding car can lead to up to three days in jail.

New traffic regulations create a fine of appx. $15 for jaywalking and if a pedestrian is accused of causing a traffic accident the pedestrian can be held in jail during investigations.

How harshly these regulations will be enforced is unknown.

Speed limits are:   Urban areas – appx. 30 mph. At appx 10 miles over the limit can cause three days in jail.

Perimeter roads – appx. 55 mph.  Above 75 mph can cause three days in jail.

Straight highways –  appx. 60 mph.  Above 84 mph can cause three days in jail.

Curvy roads –  appx. 37 mph.  Above 45 mph can cause three days in jail.

I asked our attorney, Dr. Andres Cordova, to clarify. He replied:  Dear Gary:   Due to a high rate of traffic accidents in Ecuador authorities have decided on a crackdown on speeding, drunk and reckless driving.  As is sometimes the case here, I believe the authorities have gone beyond the limit. While this should certainly put some drivers in line, jail time for speeding seems too harsh. It’s one thing to go 10 over the limit and another to do 100mph in the middle of the city. I am not sure if the measure will stand but many people  have actually slowed down because of it.

There is a 10kph (6 mph) tolerance and above such you risk being ticketed and eventually, taken to jail for 3 days.   Radar detectors are illegal in Ecuador.

There are limits for urban areas and limits for highways. The limits change depending on the vehicle driven. Public transportation and trucks need to go slower.

All of these points are signs that Ecuador is in Stage III, the Take Off portion of the economic cycle which is more organized… richer in material wealth… but also more legislated and taxed.

Ecuador is still very inexpensive by US standards… just more costly than it was a decade or two ago.

About the staff at Inn Land of the Sun

Merri and I feel that one of our great accomplishments in Ecuador was to save the Inn Land of the Sun which formerly was called Meson de las Flores. The hotel was deeply in debt when we paid off the bank loans and turned management over to the the staff. They have run the hotel really well with a lot of help from local expats who care.

Cotacachi Expat Meetings Friday and Saturday, Sepetember 21-22, 2012
http://www.flickr.com/photos/ecuadorliving/7996329137/in/photostream

Staff welcoming expats to Inn Land of the Sun.

Each Friday and Saturday night there is a Cotacachi expat dinner. Expats meet in the fireplace room, enjoy a meal and talk about Ecuador news.

The menu for Friday September 21, 2012 will be Chicken Steak Spanish Style with Tres Leches Torte for desert.  $6.00 including service and tax.

Cotacachi  Inn Land of the Sun

Chicken Steak Spanish Style or Pizza (vegetarian, beef, chicken or pepperoni) plus desert. $5.00 including service and tax.

The menus for Saturday September 22, 2012 will be Pepper Steak and Vanilla Flan for desert. $6.00 including service and tax.

Cotacachi Inn Land of the Sun

Pepper Steak or Pizza (vegetarian, beef, chicken or pepperoni) plus desert. $5.00 including service and tax.

Beer $1.50 – Sparkling Mineral Water  $1.00 – Popcorn FREE

Telephone.  (593) 06-2916-009 – Telephone from US 336 – 792 – 4767 – Address: García Moreno 13-67 y sucre.

See more about Inn Land of the Sun here.

Super Thinking + Spanish in Cotacachi

Glenn Sterling has set a Super Spanish course in Cotacachi.

glenn

Super Thinking + Spanish teacher, Dr. Glenn Sterling.

Glenn, a retired Chiropractor completed the TEFL course as an English instructor through an institute in Leeds, England and has been in and out of Cotacachi teaching free English courses to Ecuadorians and Super Thinking + Spanish to expats and delegates.

His current schedule includes a Super Spanish program in Cotacachi.

Glenn is located at the Land of the Sun Inn and has been providing “free” Chiropractic clinics each Saturday.

He will also conduct his last Super Spanish course  in Cotacachi Oct 8-9-10 at the hotel before he moves to Kuala Lumpur where he will be director at of one of Asia’s largest clinics as he helps opens the important Asian market for learning Spanish.

One delegate wrote after Glenn’s last Cotacachi course:  Yesterday, in Cotacachi, Ecuador, I finished Super Spanish Super Learning.  I had high expectations for the course and they were exceeded. The course was taught in English by Dr. Glenn Sterling, a witty, engaging, retired chiropractor, and Alberto, his Ecuadorian side kick, who made sure we learned to pronounce everything correctly.

After three days, I can speak Spanish in complete sentences. In simple conversations, such as buying groceries or ordering a meal, I can make myself understood. I think that’s incredible!  Although I am far from the competence level of a native speaker, I feel I’ve taken a giant step forward in learning Spanish so that I can experience the people and culture of Ecuador.

The foregoing benefits would have more than justified the time and money I invested in Super Thinking Super Spanish. And learning some Spanish was not the most important benefit I got from the course.

The brutal truth: In recent years, I’ve rarely relaxed (No wonder I have high blood pressure!) and, suddenly, I’m aware of it. Why?  Prior to leaving the USA, I had felt for some time that the pace of life there was unhealthy for me (and for most people) and I did nothing about it.

One of the key elements Merri Scott designed into Super Learning is placing the student in the optimal state for learning.

During the course of the day and night, humans experience four types of brain waves: alpha, beta, delta, and theta. It turns out we learn best in alpha state. Research has shown that alpha state can be induced by meditation, listening to Baroque music (or any music that has about 60 beats per minute) and by taking a theanine (the active ingredient in green tea) supplement.  Getting into alpha involves slowing down and relaxing. So, class includes baroque music and guided journeys to support relaxation. Imagine learning while relaxing and having fun. That’s not how I remember school!

 In class, the past three days, I’ve been re-introduced to guided journeys and introduced to the calming effects of Baroque music (www.sundaybaroque.org). What a blessing! I’m inclined to make one or both a daily part of my life.  Rob Christie  Cotacachi, Ecuador

You can take advantage of our Special in Cotacachi or five other locations below: Bring a friend and save up to $899!  See more details and a 2012 – 2013 schedule below.

Learn Spanish in three days. Here is the autumn 2012, winter 2013 schedule.

October 8-9-10 Cotacachi  (Couple) (Teacher Glenn Sterling)

2017 Schedule

Who Gets the 36 Cents?

 

I wonder.   Who does the government owe 36 cents?

According to Treasurydirect.com, as of October 31, 2017 the cost of interest on  the total US public debt of $20,467,375,664,755.32 (20 trillion+) was $24,411,569,716.36 (24 billion+).

The 36 cents isn’t much of a problem.  The other 20 trillion is.

This is good news and bad… the rock and the hard spot.  The bad news is that the rock (US federal debt) is getting bigger….harder to miss.  The Congressional Budget Office (CBO) projected in 2010 (the debt then was a bit over 14 trillion) that, under law at that time, debt held by the public would exceed $16 trillion by 2020, reaching nearly 70 percent of GDP.

They sure goofed on that.  Here we are… not quite into 2018 and debt has shot past 20 trillion.

How could the CBO be so wrong? 

The CBO screwed up because they could never imagine that the Fed would push interest rates so low… and keep them there.  The interest rates are so low that the government can borrow and borrow and still afford the interest.

For example, US Federal government interest this year will amount to around $483 billion on the 20 trillion of debt.  Yet in 2008 on debt of only $9,229,172,659,218.31 (9 trillion +) the interest that year was $451,154,049,950.63 (451 billion +).

Interest payments in 2017 are 7% higher than they were in 2008.  Yet the debt is over 100% higher.  

Very low interest rates have helped the government borrow.  Low interest has also helped the US stocks reach all time high prices.

Here is the very hard spot.  The downside is that low interest has reduced earnings of investors.  Low interest has ruined the lifestyles of many who have retired.

Here is what happened and why the problem may exist for quite a bit longer.

If investors can increase the interest rate to 6% from the lousy 1% (or so) they earn now, they gain 1,263% more over 30 years.  Anyone living off interest, who is drawing down their portfolio over 20 years, makes 57% more annual income every year.

But if investors get 6% interest instead of 1%, the government has to also pay more on it debt.

The government will resist raising rates because it will ruin their budget, cause a collapse of the stock markets and destroy the US dollar.  

Rising interest rates, that we would like to see as investors, will create an almost unimaginable debt crisis.  If government interest goes to 6% it is like the $20+ trillion national debt  rising to 100 trillion!  Unless there are some huge tax increases, a 5% increase in interest rates would increase the national debt by five times.

A tax increase?  The current tax act being proposed reduces, not increases, revenue.

This is not a theoretical problem for the future. This is not something that our children and grandchildren will have to deal with.  This is a problem in the here and now.

Interest rates create a massive problem on two sides of the same coin.  Raise rates the massive national debts ruins the purchasing power of currencies.  Keep interest rates low and capitalism does not work for investors.  Politicians simply borrow more (on our behalf) but for their benefit.

Learn how to have more freedom and time, less stress, better health care, extra income, greater safety and profit in your savings despite America’s deficits, debt and currency risk.

Fortunately there are secrets that will allow a few to live much better, free of debt and worry despite the decline in the dollar’s purchasing power.   My wife, Merri and I, have traveled, lived, worked and invested around the world for nearly 50 years to gain this information.

Let me share the basics of this data and how we can be of help through 2018.

The first fact behind this secret is that things are really good in the western world.  Despite many problems, we are surrounded by more abundance and greater opportunity than almost anyone has ever enjoyed, anywhere, ever.   To enjoy a fair share of this wealth, all we have to do is understand human nature and learn how to invest in the new economy, as it changes and becomes new, again and again.

Merri and I have made seven huge transitions in the 50 years.  Each has allowed us to always stay ahead of losses that the majority of Americans suffer.  We are in another transition right now and want to share why and what to do so you can stay ahead and live a richer, independent life through 2018 and beyond.

A falling US dollar is one of the greatest risks we have to our independence, safety, health, and wealth, but also brings a window of huge profit as I explain below.   Though the greenback has been strong for a number of years, its strength is in serious jeopardy.  The growing federal deficits increase the national debt and this with rising interest rates propels a growing debt service.

When the Dow Jones Industrial Average recently passed 20,000, another milestone of “20” took place that has a much darker meaning to your and my spending power.  The U.S. national debt passed the $20 trillion mark.

The problem is that the Dow will come back down.  National debt will not fall.

The double shock of money fleeing Wall Street and US debt skyrocketing, will destroy the purchasing power of the greenback.

Go to the store even now.  Statistics say inflation is low, but buy some bread or, heaven forbid, some fresh vegetables like peppers or fruit.   Look at the cost of your prescription or hospital bills.  Do something simple like have your car serviced at an auto dealer.  Look at the dollars you spend and you’ll see what I mean.

The loss of the dollar’s purchasing power erodes our independence, our freedom and our savings and wealth as well. 

At the same time, low interest rates by big banks and higher health care costs soak up the ever diminishing income and savings we have left.  According to a Gallup poll, the most unpopular three institutions in America are big corporations & Wall Street banks, HMOs and Congress.

Yet there is little we can do because these institutions are in control.

Over the last 50 years the average income for 90 percent of the American population fell.  Our health system is restricted by a Kafka-esque maze of legislation and insurance regulations that delay, frustrate, and thwart attempts by patients and doctors from proper medical care.  Big banks and corporations restrict our freedom of choice.  The business customer relationships are no longer transactions between free equals.

Banks can trap us in indebtedness at every age from student loans to mortgages to health care costs.  They pay almost nothing on our savings.  They hide unexpected fees and payments in complex and unreadable documents.  Banks and big corporations routinely conceal vital information in small print and then cheat.  Weak regulations and lax enforcement leave consumers with few ways to fight back.  Many of these businesses ranging from cable TV to phone and internet service to health insurance have virtual monopolies that along with deceptive marketing destroys any form of free market.

These same companies control the credit-scoring agencies so if  we don’t pay unfair fees, our credit scores will plunge and we could lose the ability to borrow money, rent an apartment, even to get a job.  Many consumers are forced to accept “arbitration clauses” in lieu of  legal rights.  The alternative is to lose banking, power, and communication services.

Big business has also usurped our privacy.  Internet companies sell our personal data.  Personal information is pulled from WiFi and iPhones track and store our movements.  The government can access this information, sometimes without subpoenas.  There’s a lot that we don’t know, often withheld under the guise of “National Security.”

The glow on Western democratic capitalism has dimmed… or so it seems.  The US, leading the way, is still a superpower with economic, innovation and military might, but the institutions that should serve the people have become flawed or broken.

America’s infrastructure is in shambles.  The nation’s bridges are crumbling, many water systems are filled with toxins, yet instead of spending more to fix this, we build more prisons.  The 2.2 million people currently in  jail is a 500 percent increase over the past thirty years.  60% of the inmates belong to ethnic groups.  Not just non-white ethnic groups are suffering.  Annual death rates are falling for every group except for middle-aged white Americans.  Death rates are rising among this group driven by an epidemic of suicides and afflictions stemming from substance abuse, alcoholic liver disease and overdoses of heroin and prescription opioids.

America’s middle class is shrinking.  Nearly  half of America’s income goes to upper-income households now.  In 1970 only 29 percent went to this group.  How can we regain our freedom, our happiness and our well being in such a world?

What can we do?

Gain a better, freer life is to combine better health, higher income and greater savings for a happier, more resilient lifestyle. 

Merri and I will celebrate our 50th year of global living, working, investing and researching to find and share ideas on how to have simpler, low stress, healthier, more affluent lifestyles.  Our courses, reports and email messages look at ways to gain:

#1:  Global micro business income.

#2:  Low cost, natural health.

#3:  Safer, more profitable, investments that take little time or cost to buy and hold… so you can focus on earning more instead

Many readers use our services for just one of these three benefits.  They focus only on health or on earning more or on better, easier investing.

27 years ago Merri and I created the International Club as a way for readers to join us and be immersed in all three of these benefits.   The International Club is a year long learning program aimed at helping members earn worry free income, have better affordable good health and gain extra safety and profits with value investments.

Join us for all of 2018 NOW.

The three disciplines, earning, health and investing, work best when coordinated together.  Regretfully the attacks on our freedom are realities of life.  There is little we can do to change this big picture.  However we can change how we care for our health, how we earn and how we save so that we are among the few who live better despite the dollar’s fall.

We start with better lower cost health care.

Club membership begins by sharing ways to be free of the “Secret Hospital Charge Master”.   Just as governments hide truth behind “National Security”, big health care businesses hide medical truths behind “Charge masters”.  Most hospital charge masters are secret because big business does not want us to know how much hospital costs have risen.  Motivations beyond our good health, like corporate greed, want to keep us in the dark about health care cost.

Despite rising health care costs, a report from the Centers for Disease Control & Prevention shows that hospitals are the last place we want to be for good health.  One report shows that hospital-acquired infections alone kills 57% more Americans every year than all car accidents and falls put together.

Often, what patients catch in the hospital can be worse than what sent them there.  Governments and health care agencies agree  – antibiotic resistance is a “nightmare.”  An antibiotic-resistant bacteria may be spreading in more hospitals than patients know.  About one in every 25 hospitalized patients gets an infection and a 2013 report from the Journal of Patient Safety showed that medical errors are the third-leading cause of death in the country.

Along with the risk of hospital acquired illness and medical errors, the second huge threat to our well being… is health care costs, especially at hospitals.  This is why charge masters are so often secret.  There are few risks to our wealth that are greater than a hospital stay.

I have created three natural health reports are about:

#1: Nutrition

#2: Purification

#3: Exercise

Each report is available for $19.95.  However you’ll receive this free as club member and save $59.85.

Club members also receive seven workshops and courses on how earn everywhere with at home micro businesses.  We call this our “Live Well and Free Anywhere Program”.   The program contains a series of courses and reports that show ways to earn and be free. These courses and reports are:

  • “International Business Made EZ”
  • “Self Fulfilled – How to Write to Sell”
  • Video Workshop by our webmaster David Cross,
  • The entire weekend “Writer’s Camp” in MP3
  • The report “How to Raise Money Abroad”
  • Report and MP3 Workshop “How to Gain Added Success With Relaxed Concentration”
  • The course “Event-Full – How to Earn Conducting Seminars and Tours”

This program is offered at $299, but is available to you as a club member free.  You save $299 more.

Next, club members participate in an intensive program called the Purposeful investing Course (Pi).  The purpose of Pi is finding value investments that increase safety and profit.  Learn Slow, Worry Free, Good Value Investing.

Stress, worry and fear are three of an investor’s worst enemies.  These destroyers of wealth can create a Behavior Gap, that causes investors to underperform in any market good or bad.  The behavior gap is created by natural human responses to fear.  Pi helps create profitable strategies that avoid losses from this gap.

Lessons from Pi are based on the creation and management of a Primary Pi Model Portfolio, called the Pifolio.  There are no secrets about this portfolio except that it ignores the stories from economic news (often created by someone with vested interests) and is based mainly on good math that reveals the truth through financial news.

The Pifolio is a theoretical portfolio of MSCI Country Benchmark Index ETFs that cover all the good value markets using my 50 years of global experience and my study of the analysis of four mathematical investing geniuses (and friends).

There are seven layers of tactics in the Pi strategy.

Pi Tactic #1: Determine purpose and good value.

Pi Tactic #2: Diversify 70% to 80% of portfolio equally in good value developed markets.

Pi Tactic #3: Invest 20% to 30% equally in good value emerging markets.

Pi Tactic  #4:  Use trending algorithms to buy sell or hold these markets.

Pi Tactic  #5:  Add spice speculating with ideal conditions.

Pi Tactic  #6: Add spice speculating with leverage.

Pi Tactic  #7:  Add spice speculating with forex potential.

The Pifolio analysis begins with a continual research of international major stock markets that compares their value based on:

#1:  Current book to price

#2:  Cash flow to price

#3:  Earnings to price

#4:  Average dividend yield

#5:  Return on equity

#6:  Cash flow return

#7:  Market history

We combine the research of several brilliant mathematicians and money managers with my years of investing experience.

This is a complete and continual study of what to do about the movement of international major and emerging stock markets.  I want to share this study throughout the next year with you.

This analysis forms the basis of a Good Value Stock Market Strategy.  The analysis is rational, mathematical and does not worry about short term ups and downs.  This strategy is easy for anyone to follow and use.  Pi reveals the best value markets and provides contacts to managers and analysts and Country Index ETFs so almost anyone can create and follow their own strategy.

The costs are low and this type of ETF is one of the hardest for institutions to cheat.  Expense ratios for most ETFs are lower than those of the average mutual fund.  Little knowledge, time, management or guesswork are required.  The investment is simply a diversified portfolio of good value indices.  Investments in an index are like investments in all the shares of a good value market.

Pi opens insights to numerous long term cycles that most investors miss because they have not been investing long enough to see them.

The Pi subscription is normally $299 per annum but as a club member you receive Pi at no charge and save an additional $299.

Profit from the US dollar’s fall.

In the 1980s, a remarkable set of two economic circumstances helped anyone who spotted them become remarkably rich.  Some of my readers made enough to retire.  Others picked up 50% currency gains.  Then the cycle ended.  Warren Buffett explained the importance of this ending in a 1999 Fortune magazine interview.  He said:  Let me summarize what I’ve been saying about the stock market: I think it’s very hard to come up with a persuasive case that equities will over the next 17 years perform anything like—anything like—they’ve performed in the past 17!

Club members receive a report about opportunity in the  current strength of the US dollar is a second remarkable similarity to 30 years ago.   The dollar rose along with Wall Street.  Profits came quickly over three years.  Then the dollar dropped like a stone, by 51%  in just two years.  A repeat of this pattern is growing and could create up to 50% extra profit if we start using strong dollars to accumulate good value stock market ETFs in other currencies.

This is the most exciting opportunity I have seen since we started sending our reports on international investing ideas more than three decades ago.  The trends are so clear that I created a short, but powerful report “Three Currency Patterns for 50% Profits or More.”   This report shows how to earn an extra 50% from currency shifts with even small investments.  I kept the report short and simple, but included links to 153 pages of  Good Value Stock Market research and Asset Allocation Analysis.

The report shows 20 good value investments and a really powerful tactic that shows the most effective and least expensive way to accumulate these bargains in large or even very small amounts (less than $5,000).  There is extra profit potential of at least 50% so the report is worth a lot.

This report sells for $29.95 but when you become a club member you receive the report, “Three Currency Patterns For 50% Profits or More” FREE.

Plus get the $39.99 report, “The Silver Dip 2017” free.

With investors watching global stock markets bounce up and down, many missed two really important profit generating events.  The price of silver dipped below $14 an ounce as did shares of the iShares Silver ETF (SLV).   The second event is that the silver gold ratio hit 80 and has remained near this level, compared to a range of the 230s only two years ago.

These two events are a strong sign to invest in precious metals.

I prepared a special report “Silver Dip 2015” and updated this in 2017.   The report explains the exact conditions you need to make leveraged silver & gold speculations that can increase the returns in a safe portfolio by as much as eight times.  The purpose of the report is to share long term lessons about speculating in precious metals gained through 30 years of speculating and investing in gold and silver.

The low price of silver offers special value now so I want to send you this report because the “Silver Dip 2017” offers enormous profit potential in 2017.

The report “Silver Dip 2017” sells for $39.95 but club members receive it free as well.

The $39.95 new “Live Anywhere – Earn Everywhere Report” is also free.

There is an incredible new economy that’s opening for those who know what to do.  There are great new opportunities and many of them offer enormous income potential but also work well in disaster scenarios.

There are are specific places where you can reduce your living expenses and easily increase your income.  Scientific research has shown that being in such places actually make you smarter and healthier.  Top this off with the fact that they provide tax benefits as well and you have to ask, “Where are these places?”.

Learn about these specific places.  More important learn what makes them special.  Discover seven freedom producing steps that you can use to find other similar places of opportunity.

The report includes a tax and career plan broken into four age groups, before you finish school, from age 25 to 50 – age 50-to 65 and what to do when you reach the age where tradition wants you to re-tire.  (Another clue-you do not need to retire and probably should not!)

The report is very specific because it describes what Merri and I, our children and even my sister and thousands of our readers have done and are doing, right now.

Live Anywhere – Earn Everywhere focuses on a system that takes advantage of living in Smalltown USA, but earning locally and globally.

This report is available online for $39.99 but International Club members receive it free.

Save $418.78… “plus more” when you become a club member.

Join the International Club and receive:

#1: The $299 Personal investing Course (Pi).   Free.

#2: The $299 “Live Well and Free Anywhere Program”. Free.

#3: The $29.95 report “Three Currency Patterns For 50% Profits or More”. Free.

#4: The $39.99 report “Silver Dip 2017”. Free

#5: The three $19.99 reports “Shamanic Natural Health”.  All three free.

#6: The $39.99 “Live Anywhere – Earn Everywhere” report. Free.

#7: A subscription to the Purposeful investing course… Plus more.

These reports, courses and programs would cost $767.78 so the 2018 membership saves $418.78, “plus more”.

What’s the “plus more”?

Join the International Club for $349 and receive all the above online now, plus any online reports, online course updates or online programs we create throughout 2017 all at no additional fee. The club membership entitled you to everything.

The International Club membership is $499, but we want to encourage our first 100 members for 2018 to join quickly so we are currently accepting discounted membership at $349. 

Join the International Club for $349 and receive all the above online now, plus all reports, course updates and Pi lessons through the rest of 2017 and all of 2018 at no additional fee.

Click here to become a member at the discounted rate of $349

Gary 

Report on economic development at the North Virginia Education website 



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