Tag Archive | "BBC"

The Power of Profit in Sound


There is a power of profit in sound.

relaxed-concentration

Photo from the article "Stonehenge Design Inspired by Sound."

Sound is important wherever you go… this is why pronunciation is so vital in a language.

Here is a really important lesson about sound in Ecuador that Merri and I learned the hard way.  This will apply to any Spanish language country.  We found in our original travels often when we arrived… though we had made the reservation… the hotel did not have it.  This usually happened late at night (or in the wee hours of the morn) when the most junior staff were at the check in desk.

This puzzled us until we realized about the power of sound.  Our last name is Scott.  The Spanish language has no way to pronounce a double consonant link this. A Spanish speaker without training simply cannot say or even think in terms of Scott.  To them they would need to hear  Escott  pronounced not something hard like the double consonants of SCOTT.  This is compared to Spanish or Espanol…much softer… So the check in desk was always looking for our reservation under E for ESCOTT  not SCOTT…which doesn’t exist in Spanish.

Smith is pronounced ASmeeth and seen as Esmith.  Recently a reader named Lile arrived early in the morn and found he did not have a room.   Had he stated that he was Senor “LeeLay”  I am guessing the reservation was there.

Here is a tip we use on solving this sound problem.  “Just write your name and show it to the desk clerk”.

Correct pronunciation is so important in a language that we use only native born Spanish speakers as pronunciation coaches in our Super thinking  + Spanish courses. More on that in a moment.

First, here is even more important deeper wisdom about the power of sound and how you can use it to to live better… retire anywhere, anytime but still have plenty of income earned in a gratifying low stress way.

A recent BBC News article entitled “Stonehenge design was ‘inspired by sounds”  by Jonathan Amos, a science correspondent, shares a really provocative thought about the power of sound when it says:  Music could have been an inspiration for the design of Stonehenge, according to an American researcher.

Steven Waller’s intriguing idea is that ancient Britons could have based the layout of the great monument, in part, on the way they perceived sound.

He has been able to show how two flutes played in a field can produce an auditory illusion that mimics in space the position of the henge’s pillars.

Mr Waller presented the idea at the AAAS meeting in Vancouver, Canada.

He told the BBC: “My theory is that the ancient Britons, when they were hearing two pipers in a field, were experiencing sound wave interference patterns, where in certain locations as you walked around the pair of pipers, you would hear loud or quiet zones.

“If you could look at it from an overhead view, it would look like the spokes of a wheel. And, as you walk around the circle, every time you come to one of these sound-wave cancellation points, it feels like there is this massive invisible object in front of you.

“Put all this ‘vision in your mind’ together and it forms a Stonehenge-like structure.”

Mr Waller is an expert in “archaeoacoustics”, which examines the role sound might have played in ancient cultures.

relaxed-concentration

The phenomenon of interference leads to amplified and silenced regions. There is a link to the entire article below.

This phenomenon of sound can help us learn how to tap into unimaginable intelligence.  Here is why.

The influence is subtle – yes. The impact is more subtle than perhaps the color of the room you are born in… less than the skill of the doctor or midwife (or lack thereof) attending the birth… the weather outside… room  temperature, etc… but the influence is there.

Plus in many ways subtle can be more powerful than not-so-subtle.

Subtle is powerful because nothing ever rests.  Everything is rustling in nature’s gentle vibration so everything has a push pull impact on everything else at some subtle level.  For example you’ll see in a moment how one photon can influence a frog’s eye from a distance of 60 trillion miles!

This connection of everything with everything else is really important because it is a driving force in the universe.

All existence in the universe is a swirling mass of energy.  Form is created by density and speed of energy and the vibration of atoms and molecules, along with the impact of environmental forces (everything else).

All matter is vibrating energy as are all emotions and thoughts.  Thus all thought, reason, emotion, will or desire are accompanied by vibratory rates, which may be lowered or raised by external forces… such as the planets.

In the same way that the vibration of a musical note can affect the atoms and molecules in a mirror and cause it to shatter, so it is with planetary resonance.

According to Dr Percy Seymour, a Theoretical Astrophysicist, resonance makes it possible for a radio telescope to tune into specific vibrations in the Andromeda Galaxy (14 million, million, million miles away) and accounts for the Solar System playing a symphony of vibrations on the magnetic field of the Earth.  If so, then even small fluctuating forces can have large consequences.   This is the main tenet of astrology, personalities of individuals are related to the state of the Solar System at the time of birth and their feelings and thoughts are influenced by the motion and position of the planets.

There is a resonance from the tugs of the tide.  There is a resonance from the hot gases trapped in the magnetic field of the Sun and Earth.  There is resonance in the fluctuations of the Earth’s magnetic field. There is resonance in the reflected sunlight from the moon that waxes and wanes.  All these frequencies have an impact on the electrical activity of the neural network in the brain. Resonance of frequency (harmonics) is the celestial link to the terrestrial form.

The study of the harmonics of cosmic periods or resonant theory (harmonics) can help us dramatically boost access to the wisdom we possess but do not know how to reach.

The study of resonance explains why we attract certain events, or people, to us who reflect the state of our consciousness. Thus, when we are angry we are more likely to attract the violence or car accident which we are resonating with. More positively, it is the explanation for miraculous events in that we ‘entrain’ ourselves to good unfolding when our thoughts are constantly kept at the higher vibration, or frequency, of love and happy outcomes.

Dr. Seymour says in his book  “The Scientific Basis of Astrology” that the basic principles of western science comes from a total misunderstanding of resonance and an appalling lapse in their understanding of the methodology, philosophy and history of science itself.

Infinite Knowledge in the Quantum Interference Pattern

This resonance is a never ending part of quantum reality and one aspect of light and sound can show us how tap into unbelievable wisdom.

David Deutsche an Israeli-British physicist at the University of Oxford laid the foundations of the quantum theory of computation and made it comprehensible to the general public, notably in his book “The Fabric of Reality” which helps us understand our quantum reality though the frequencies in the range we call light. (All bolds in the excerpts are mine).

This information also relates ot sound.

Here are excerpts from “The Fabric of Reality”:  In his popular Royal Institution lectures on science, Michael Faraday used to urge his audiences to learn about the world by considering what happens when a candle burns. I am going to consider an electric torch (or flashlight) instead. This is quite fitting, for much of the technology of an electric torch is based on Faraday’s discoveries.

Deutsche describes an experiment that shows how light is at the core of quantum physics.

His books says: Imagine an electric torch switched on in an otherwise dark room. Suppose that the light of a torch passes through two successive small holes in otherwise opaque screens, as shown in Figure 2.4, and that the emerging light falls on a third screen beyond. Our question now is this: if the experiment is repeated with ever smaller holes and with ever

FIGURE 2.4 Making a narrow beam by passing light through two successive holes.

quantum-experiment

Can the illuminated region between the second and third screens  be confined to an arbitrarily narrow cone? In goldsmiths’ terminology, we are now asking something like ‘how “ductile” is light’ — how fine a thread can it be drawn into? Gold can be drawn into threads one ten-thousandth of a millimetre thick.

It turns out that light is not as ductile as gold! Long before the holes get as small as a ten-thousandth of a millimetre, in fact even with holes as large as a millimetre or so in diameter, the light begins noticeably to rebel. Instead of passing through the holes in straight lines, it refuses to be confined and spreads out after each hole. And as it spreads, it ‘frays’. The smaller the hole is, the more the light spreads out from its straight-line path. Intricate patterns of light and shadow appear.

The book then goes onto show that a pattern like this would appear.

quantum idea

Then Deutsche continues:  If light travelled in straight lines, the pattern in Figure 2.6 would consist simply of a pair of bright bands one-fifth of a millimetre apart (too close to distinguish on this scale), with sharp edges and with the rest of the screen in shadow. But in reality the light bends in such a way as to make many bright bands and dark bands, and no sharp edges at all.

Now, what sort of shadow is cast if we cut a second, identical pair of slits in the barrier, interleaved with the existing pair, so that we have four slits at intervals of one-tenth of a millimetre? We might expect the pattern to look almost exactly like Figure 2.6.

quantum-experiment

After all, the first pair of slits, by itself, casts the shadows in Figure 2.6, and as I have just said, the second pair, by itself, would cast the same pattern, shifted about a tenth of a  millimetre to the side — in almost the same place. We even know that light beams normally pass through each other unaffected. So the two pairs of slits together should give essentially the same pattern again, though twice as bright and slightly more blurred.

In reality, though, what happens is nothing like that. The real shadow of a barrier with four straight, parallel slits is shown in Figure 2.7(a). For comparison I have repeated, below it, the illustration of the two-slit pattern (Figure 2.7(b)). Clearly, the four-slit shadow is not a combination of two slightly displaced two-slit shadows, but has a new and more complicated pattern. In this pattern there are places, such as the point marked X, which are dark on the four-slit pattern, but bright on the two-slit pattern. These places were bright when there were two slits in the barrier, but went dark when we cut a second pair of slits for the light to pass through. Opening those slits has interfered with the light that was previously arriving at X.

quatum-light

So, adding two more light sources darkens the point X; removing them illuminates it again. How? One might imagine two photons heading towards X and bouncing off each other like billiard balls. Either photon alone would have hit X, but the two together interfere with each other so that they both end up elsewhere. I shall show in a moment that this explanation cannot be true. Nevertheless, the basic idea of it is inescapable: something must be coming through that second pair of slits to prevent the light from the first pair from

So, whatever causes interference behaves like light.

What should we expect to happen when these experiments are performed with only one photon at a time?

But what we surely could not observe is any place on the screen, such as X, that receives photons when two slits are open, but which goes dark when two more are opened.

Yet that is exactly what we do observe. However sparse the photons are, the shadow pattern remains the same. Even when the experiment is done with one photon at a time, none of them is ever observed to arrive at X when all four slits are open. Yet we need only close two slits for the flickering at X to resume.

So, if the photons do not split into fragments, and are not being deflected by other photons, what does deflect them? When a single photon at a time is passing through the apparatus, what can be coming through the other slits to interfere with it?

Since different interference patterns appear when we cut slits at other places in the screen, provided that they are within the beam, shadow photons must be arriving all over the illuminated part of the screen whenever a tangible photon arrives. Therefore there are many more shadow photons than tangible ones. How many? Experiments cannot put an upper bound on the number, but they do set a rough lower bound. In a laboratory the largest area that we could conveniently illuminate with a laser might be about a square metre, and the smallest manageable size for the holes might be about a thousandth of a millimetre. So there are about 1012 (one trillion) possible hole-locations on the screen. Therefore there must be at least a trillion shadow photons accompanying each tangible one.

Thus we have inferred the existence of a seething, prodigiously complicated, hidden world of shadow photons.

Interference is not a special property of photons alone. Quantum theory predicts, and experiment confirms, that it occurs for every sort of particle. So there must be hosts of shadow neutrons accompanying every tangible neutron, hosts of shadow electrons.

It follows that reality is a much bigger thing than it seems, and most of it is invisible. The objects and events that we and our instruments can directly observe are the merest tip of the iceberg.

For similar reasons, we might think of calling the shadow particles, collectively, a parallel universe, for they too are affected by tangible particles only through interference phenomena. But we can do better than that. For it turns out that shadow particles are partitioned among themselves in exactly the same way as the universe of tangible particles is partitioned from them. In other words, they do not form a single, homogeneous parallel universe vastly larger than the tangible one, but rather a huge number of parallel universes, each similar in composition to the tangible one, and each obeying the same laws of physics, but differing in that the particles are in different positions in each universe.

A remark about terminology. The word ‘universe’ has traditionally been used to mean ‘the whole of physical reality’. In that sense there can be at most one universe. We could stick to that definition, and say that the entity we have been accustomed to calling ‘the universe’ — namely, all the directly perceptible matter and energy around us, and the surrounding space — is not the whole universe after all, but only a small portion of it. Then we should have to invent a new name for that small, tangible portion. A new word, multiverse, has been coined to denote physical reality as a whole.

Thus we have reached the conclusion of the chain of reasoning that begins with strangely shaped shadows and ends with parallel universes.

The quantum theory of parallel universes is not the problem, it is the solution. It is not some troublesome, optional interpretation emerging from arcane theoretical considerations. It is the explanation — the only one that is tenable — of a remarkable and counter-intuitive reality.

Many of those Davids are at this moment writing these very words. Some are putting it better.  Others have gone for a cup of tea.

Desutsche goes on to explain how every aspect of our universe is impacted by trillions of shadow universes and that our universe is a shadow universe to trillions of universes.

Imagine… we are… every fiber of our being… and all we see and hear and feel is composed of… and connected to… and in touch with… everything in our universe… and trillions more universes!

Here is my theory on how we can use this knowledge to fine tune our thinking and integrate it with our intuition:

Our beta works in four wave forms… beta, alpha, theta and delta.

The beta waves tap into the local news.  This is the part of our being that takes care of the here and now…the space around us.  These brain waves dominate our logical thinking.

Our alpha waves connect us to the regional news…a much deeper and broader area of intelligence too vast for our prefrontal logical brain to compute on its own. When we tap into alpha we get intuitive creative flashes we could never just think up logically.

Theta connect brain waves connect with the global news…an even deeper vaster level of intelligence and finally we reach delta.

Delta waves are our connection to the universal news right down to our quantum state and perhaps trillions of shadow universes. These are the brain waves that allow us to dream and do multi things in varied places combining the past and future all at the same time!

This is an intelligence so vast that we cannot even imagine it.  This is yota-yota yotabytes of data… compared to our brains that process at 64K.   We must be in a dream state where the physical boundaries strip away.  In delta we can be in two places at once, know all things and even fly… yet stil be in the ground at the same time… full potentiality.

When we allow these waves to interconnect freely with our logic and have a way to gear the data down into usable form, we gain unimaginable intellect.  Many would say we are in a super state or when processing information in this way we could describe ourselves as being “in the zone”.

Assuming the theory that Stonehenge was built around harmonic interference patterns we need to thank our ancestors for understanding and sharing this knowing in such a durable way.

We can use this knowledge of the ancients to enhance our understanding so our mental and physical abilities improve.  We can gain inner improvements… greater flexibility… more intelligence… broader perspective… the ability to see what we know but did not know.   These are keys that allow us to tap into a power of knowledge for greater wealth.

This is the type of knowing that allows us to retire anytime from the rat race and live and do what we truly desire.

Gary

Our Super Thinking + Spanish courses helps us learn how to use sound to increase our intelligence.

See our courses schedule in Ecuador, Costa Rica and Uruguay for March and April 2012.

Or join Merri and me in Mt. Dora, Florida this Thursday, March 8. We have two spaces left.

Learn Spanish in Florida. Ecuador, Uruguay or Costa Rica.  See our current schedule below.

2017 Schedule

The Huge 2018 Risk

Here is a huge risk that could explode in 2018.

I hope I am wrong.

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 Platinum Dip 2018” 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.

Now there is a new distortion ready to ripen in the year ahead.

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

I prepared a special report “Platinum Dip 2018”.   The report explains the exact conditions you need to make leveraged precious metal 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 “Platinum Dip 2018” offers enormous profit potential in 2018.

The report “Platinum Dip 2018” 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 “Platinum Dip 2018”. 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”?

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. 

To encourage our first 100 members for 2018 to join quickly so we are currently accepting discounted membership at $349.

Save $418.78.  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

Click here to become a member at $89 per quarter charge automatically to your credit card

Gary 

Stonehenge design was ‘inspired by sounds’

Retire & Earn Abroad


Here is another reason to Retire and & Earn Abroad.

Yesterday’s message on lifestyle and Ecuador diversification was really backed up by Uncle Sam quickly!

Whether you retire in Ecuador or anywhere outside your home.. you want diversification. See why below!

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One benefit of retiring in Ecuador is that it can help the poor there.

Yesterday’s article worried about weather change being called a threat to national security and wondered if this concept could further erode human rights.

I never imagined the very next day we would have even more concern… yet an article by James Risen in the New York Times entitled:  “U.S. to Hunt Down Afghan Drug Lords Tied to Taliban” must give us pause.

Here is an excerpt:  WASHINGTON — Fifty Afghans believed to be drug traffickers with ties to the Taliban have been placed on a Pentagon target list to be captured or killed, reflecting a major shift in American counternarcotics strategy in Afghanistan, according to a Congressional study to be released this week.

United States Marines on a recent raid in Helmand Province. Under a new policy, drug traffickers are subject to being killed.

United States military commanders have told Congress that they are convinced that the policy is legal under the military’s rules of engagement and international law. They also said the move is an essential part of their new plan to disrupt the flow of drug money that is helping finance the Taliban insurgency.

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Part of our work at Meson de las Flores was to continue a policy at our hotel to feed the poor. We always keep a pot of nutritious stew on the stove and our less fortunate are welcome any time of the day.  Above is one of our regular guests.

The problem is that the erosion of rights creeps upon us in small steps… like income tax. When to raise revenue to fund the Civil War, an income tax was introduced in the United States with the Revenue Act of 1861. It was a flat rate tax of 3% on annual income above $800.

When the idea was contested on concerns that the tax, once established, would grow, one Congressman stated that there was no way the population would let the tax ever be higher than 3%.   Yet a year later  flat tax this was replaced with a graduated tax of 3-5% on income above $600 in the Revenue Act of 1862.

This act made tax temporary ending in 1866.  Regretfully, perhaps, in 1866, income tax collections reached their highest point ever, over $310 million.  This made the tax popular and today we can see the effects of the small steps… one freedom eroded at a time.

So where does the legal right to kill drug dealers lead?  If it is legal to kill Afghan drug dealers to disrupt the flow of drug money that finance insurgency, what about drug dealers in Mexico that are financing insurgency in the US?  Can we kill them too?  If so, how about if we catch them in the US, can we kill them there?   If so what if they are US citizens or residents?  Can we still kill them?  Can the army become involved… in the name of national security?  Do they have to check a person’s passport before they shoot the drone at them?

These are tough calls, but somehow making it legal for the army to kill non combatants seems like a small step in the wrong direction.

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Merri and I visiting a village that our foundation supports… helping the old and supporting the young by improving their school.  This is a fulfilling retirement activity.

Yet loss of rights is not the only reason we might want to live or retire in Ecuador or elsewhere, full or part time, for diversification.

The rising cost of living makes it difficult to retire in the West.  Plus though taxes are rising… benefits for those who retire are not.

A recent BBC article “Pension age could rise further” shows how the rot in England has grown. An excerpt says:  The state pension retirement age could be increased further, the UK’s pensions regulator has told the BBC.

David Norgrove said rising life expectancy meant millions of people would “undoubtedly” have to wait longer in future to draw a state pension.

People will not save as much for retirement as in the past, with many people “frightened” to do so, he said.

The state pension age is due to rise to 68, and Pensions Minister Angela Eagle said there were no plans to raise that.

Currently, the state pension age is 60 for women and 65 for men, but four years ago Lord Turner published a report calling for it to rise to 68 for everyone by 2044.

But Mr Norgrove said he thought it would end up higher.

Mr Norgrove said: “People are going to have to work longer, partly because we’re not going, as a nation, to save as much for retirement as we did in the past.” He added: “The government’s recent legislation is increasing the state retirement age progressively to 68. I think it will end up higher than that.”

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Part of our program is to get readers who retire in Ecuador involved helping the poor.  We also offer roses and donate the proceeds to help people like this charming woman.  See more about her, and how the roses help, here.

Another reason to retire in Ecuador is that business opportunity seems to be rising there as it falls in the north.

A recent USA Today article. “Business bankruptcies up 240% since 2006”, by Christine Dugas outlines a US retirement and lifestyle problem.  Here is an excerpt of that article:

Entrepreneurship and new small businesses are supposed to lead us out of the recession, just as they have in prior downturns, right?  Sure.

Your neighbor’s grand idea will persuade a bank to lend her start-up money; she’ll open for business in six weeks; and money will immediately flow from customers to her to her employees. Taxes will be paid, and the national economic engine will hum effortlessly in no time. If only.

Today shows a different reality: Commercial bankruptcies are surging. Fewer people are starting small businesses, and firms already open are struggling under changing consumer habits, a lack of funding options and tougher bankruptcy laws. If a nationwide trend seen since January holds true, more than 300 businesses will file for bankruptcy today alone.

The first five months of this year have shown a 52% increase in the total number of commercial bankruptcy filings (36,106) compared with the same period last year (23,829), according to the Automated Access to Court Electronic Records. On average thus far in 2009, some 350 commercial enterprises file for bankruptcy daily an increase of 240% from 2006, the first year after the bankruptcy law was changed.

Major corporate failures, like GM and Chrysler, flash across front pages and websites. But the vast majority of commercial bankruptcies, which are not separated by size of firm by data keepers, are filed by entrepreneurs and small-business owners, says Robert Lawless, professor of law at University of Illinois.

Troubling for the economy, say Lawless and Todd McCracken, president of the National Small Business Association, is the double-whammy of fewer start-ups and increasing bankruptcies.

“In the past, small-business formation increased in a recession because people had self-employment thrust upon them,” he says. “One avenue out of economic hard times self-employment has become less attractive, because the bankruptcy law is less forgiving” and there are fewer options for those entrepreneurs to get bank loans or to find funding elsewhere.

Small business is considered the backbone of the economy. In the past, new businesses led economic recoveries, McCracken says. Small businesses  those with fewer than 500 employees  make up half of the gross domestic product and account for most job growth.

Problems from the devastated housing market, overall recession and suffering major industries all funnel down to small businesses, especially those that supply the troubled corporations.

Household spending cutbacks reach far, too. Dual-income families who are now single-income may no longer need or be able to afford child care, so many of those services are going out of business, says Lester Thompson, a bankruptcy lawyer in Dayton. Sporting goods stores and lawn-mowing services also have struggled.

Small-business bankruptcy filings jumped the most in the Los Angeles and Chicago metro areas, according to Equifax. But even smaller areas of the country are experiencing a big increase.

Many small businesses owe so much money to creditors that there is no future. Such owners often file for Chapter 7 bankruptcy and shut their businesses for good.

The credit crunch is a major contributor to the rise in filings.

Loan dollar volume from the U.S. Small Business Administration has increased 35% since the American Recovery and Reinvestment Act was passed on Feb. 17, according to the SBA. Even so, a National Federation of Independent Business trend report states that in May the percentage of business owners reporting that loans are harder to get rose to 16%, the highest reading since the 1980-82 recession.

With that reality, and loath to dip into their retirement savings, struggling small-business owners have few options other than bankruptcy. When the bankruptcy law changed in 2005 it was mostly aimed at curbing abuse of personal bankruptcy filing. But it also singled out small businesses for harsher treatment, and those changes did not apply to larger corporations, Lawless says.

Bankruptcy is still the only option for many small-business owners who are hanging by a thread.

This is why the idea of living or retiring in Ecuador or elsewhere, at least part time,  for diversification and global earning potential makes sense because opportunity is growing elsewhere.

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Nothing makes our retirement problems diminish faster than helping those who have even greater needs.

An excerpt from a recent Wall Street Journal article “Ecuador’s Business Confidence Index Up” by Mercedes Alvaro says: QUITO (Dow Jones)–Ecuador’s Business Confidence Index, measured by Deloitte and Touche, surged 5% in May to 93.2 points, compared with May 2008, the company said in its monthly report.

Deloitte said the index recovered by 31% in May against April, returning to the levels registered during the last quarter of 2008.

The Index’ recovery is largely due to the waning perception among executives of a deterioration of the country’s economic and political conditions, it said.

Deloitte found that 45% of those surveyed are less optimistic about the economy compared with April, while 52% perceive no change.

The slow but steady increase in oil prices and the revival of the global economy are grounds for expecting that the economy in Ecuador could improve by year’s end or in early 2010.

Questioned about the performance of their businesses, 34% said they had lower sales compared to the previous months and 39% reported revenues down on the same period of last year.

The survey found 20% reported a reduction in their workforce compared to the previous month.

Around 57% of the business leaders surveyed said that the country’s socio-economic situation makes it difficult to attract foreign investment.

Blue-ridge-mountains

We should help our neighbors at home as well. This is why we are developing environmentally sensitive, sustainable programs to encourage value-added, employment in the Blue Ridge as well.

I have written many times about the benefits of retiring in Small Town USA for lifestyle diversification as well. See more on lifestyle diversification at Inspired to Retire

We can see below why diversification remains important even if we retire in Ecuador.

Just because we want to live or retire in Ecuador does not mean that Ecuador does not have its own creeping erosion of rights problems as well.  An August 3 news.Yahoo article says: Correa: Ecuador to take over radio, TV stations.  QUITO, Ecuador – Ecuadorean President Rafael Correa says “many” radio and TV frequencies will revert to state control due to what he’s calling irregularities.  The president has been at war with Ecuador’s news media since taking office in January 2007. He has called TV stations and newspapers corrupt and mediocre, and twice fined an opposition broadcaster.  Correa did not specify Monday what sort of abuses or irregularities broadcasters have committed. Nor did he name any alleged offenders.

An August 5th update on this matter in the Wall Street Journal says: Ecuador Govt Braces For Reaction To Radio, TV Takeovers

QUITO (Dow Jones)–Ecuador’s government is expecting “strong reactions” to a report that will determine which television and radio stations will revert to state control.

Antonio Garcia, chairman of Ecuador’s National Radio and Television Board, said Wednesday that a report will be issued next week on which stations the government will take over.

President Rafael Correa’s government has alleged that a number of stations received their broadcasting concessions illegitimately and said that “many” would revert to state hands.

Correa’s announcement came on the heels of the government of Venezuelan President Hugo Chavez, the Ecuadorian president’s close ally, shutting down 34 privately-owned radio stations last weekend.

An initial report by an Ecuadorian government commission last year found that 236 of 1,637 frequencies had obtained their concessions illegally.

Garcia brushed off what he called “alarmist accounts” that all radio and television stations will revert to state control and that the government is looking at them on a case-by-case basis.”

He said that some media outlets, however, are “trying to misinform” viewers and listeners.

We’ll stay tuned to what happens with this takeover  at our Ecuador Living  Service.

The greatest asset for diversification is the ability to earn wherever you live and to keep your investments safe.

This is why we offer our course Tangled Web… How to Have an Internet Business.

A clear mind and healthy body are also a vital assets… plus a second language is a powerful diversification tool.

This is why I am willing to pay you $300 to attend either our Ecuador Super Thinking plus Spanish seminar in September or our North Carolina International Business & Investing seminar in October.  Sign up for either seminar and I will email you our Tangled Web… How to Have an Internet Business Course (offered at $299) free plus I’ll knock an extra dollar off your seminar fee…. to round up the $300 savings.

See details of the two seminar below.

Here is Thomas Fischer talking with seminar delegates at a recent international investing course that I co hosted with Jyske Global Asset Management.

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Join Merri, Thomas Fischer of JGAM, our webmaster David Cross and me in North Carolina this October and enroll in our emailed course on how to have a web business free.  Save $300.

Learn more about global investing, how to have an international business and diversification in Ecuador at the seminar.

Oct. 9-11 IBEZ North Carolina

Or join us in Ecuador and learn more about living and retiring in Ecuador.

retire-in-ecuador

Seminar delegates visiting Otavalo market looking for Ecuador export ideas.

Sept. 17-21 Ecuador Spanish Course
Sept. 23-24 Imbabura Real Estate Tour
Sept. 25-28 Ecuador Coastal Real Estate Tour

Oct. 21-24 Ecuador Import Export Tour

Nov. 6-8 IBEZ Ecuador Seminar
Nov. 9-10 Imbabura Real Estate Tour
Nov. 11-14 Ecuador Coastal Real Estate Tour

Attend any two Ecuador seminar or tours in a calendar month…$949 for one.  $1,349 for two.

Attend any three Ecuador courses or tours in a calendar month…$1,199 for one.  $1,799 for two.

Learn more about the power of  Ecuador export ideas

See WSJ article Ecuador’s government braces for reaction

See NYT article U.S. to Hunt Down Afghan Drug Lords Tied to Taliban

Ecuador Cotacachi Inti Raymi


Inti Raymi is a special festival carried out in this plaza, the center of Cotacachi, Ecuador… just a block from our hotel Meson de las Flores.

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Here is our Cotacachi hotel.

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Here is Cotacachi’s main plaza.

Ecuador’s indigenous population are gentle, sweet, friendly and kind people who are industrious and trustworthy.   However, in Cotacachi for one day of the year, during the second weekend of the Inti Raymi festivities there is an aggressive event that leads to fights and sometimes even death.

Legens dictate that two indigenous communities near Cotacachi, one from La Calera and one from Quiroga have bad blood has existed since Incan times.

The story is that Quiroga had a sacred bull that was stolen by the people of La Calera. They not onlymanaged to steal the bull but killed and ate it!

This is the pretext for what should be ritualistic fights that take place in Cotacachi plaza once a year during the Into Raymi festival.

However part of the legend is that blood must be spilled durng the fight to acquiesce the Gods – otherwise the following year’s harvest will not be good.

The men often wear cowboy chaps made from leather and finished with goat’s hair. The more goat’s hair the better – to lessen the blow as one is kicked by your neighbors – just this one day of the year!”

Here is a shot of the goat hair chaps.

Some years the battle gets carried away and someone dies.

I have read many criticisms about Ecuador’s indigenous people over this…. “so barbaric… so  unsafe!”   “These people should be civilized as we are in the West bicycle helmets, seat belts and all”… I hear.

I shrug this off as I lived for many years in other “civilized” nations… like England in Gloucestershire… where the locals have celebrations based on ancient tradition as well.

Our son Jake just sent this report earlier this week:

Dad,

Me and my mate Fergus went to the cheeserolling today, Here’s a good clip.

I did a quick check on the stats for the day and the result was:

‘This year’s injury toll of 18 was described as “low” by St John Ambulance, and ten of the wounded were not competitors but spectators.

Three cheese-chasers were taken to hospital for treatment – two with suspected spinal injuries and one with a dislocated shoulder. The rest had cuts and bruises.

Six people fainted just watching the event and four other spectators have minor injuries. One of those had fallen out of a tree and was taken slowly down the 100ft slope on a spinal board.’

See the cheeserolling event on BBC here.

Cheers  Jake

A bit of danger and daring might be a good part of the human trial.

I wonder what the real cost of safety and risk elimination might be?

I suspect that the expense is more than the benefit. This is one of the qualities I really enjoy in Ecuador… a little less sanitation… a little more freedom to live as I wish, as a fully informed adult…without so many worries of law suits, rules and regulations.

Gary

Join us at an upcoming Ecuador or North Carolina conference or tour.

June 12-14 Shamanic Mingo Tour

June 16-17 Imbabura Real Estate Tour

June 18-21 Ecuador Coastal Real Estate Tour

July 4-8  Ecuador Export Tour

July 8-9 Imbabura Real Estate Tour

July 10-13 Ecuador Coastal Real Estate Tour

July 24-26 IBEZ North Carolina

Sept. 17-21 Ecuador Spanish Course

Sept. 23-24 Imbabura Real Estate Tour

Sept. 25-28 Ecuador Coastal Real Estate Tour

Oct. 9-11 IBEZ North Carolina

Oct. 21-24 Ecuador Import Export Expedition

Nov. 6-8 IBEZ Ecuador

Nov. 9-10 Imbabura Real Estate Tour

Nov. 11-14 Ecuador Coastal Real Estate Tour

Attend any two Ecuador courses or tours in a calendar month…$949 for one.  $1,349 for two.

Attend any three Ecuador courses or tours in a calendar month…$1,199 for one.  $1,799 for two.

Green Investing & Ecuador Cars


Green investments may have extra value now.

“Green  Cars”  means something different now… than it did when I began to drive.

Today “Green Car” might means this….”Small is beautiful”.

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45 years ago a “green car” meant something like this!

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“Bigger was better!”

Thinking about this change can help us cash in on green investing.

Actually buying a car like the GTO would have been a pretty good investment.

Rare cars had really good appreciation for many years… but the green, very non green, GTO above can tell us more about where to invest in “Environmental Green.”   A change in green mentality can show us how to spot special investing value that goes way beyond collecting antique cars.

This was my first car.

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This was a 1958 Chevy Bel Air.  I bought it in 1963, used… for $895. This forced me to get a job…. busing dishes at a steak house in Portland, Oregon.   That car sort of set my lifestyle for decades… a solid member of the “one car per person” society.

I lived a mile from an isolated levy on the Columbia River… so yes, I drove my Chevy to the levy.

No more!   Bye Bye Miss American Pie is a more appropriate tune since Pontiac is about to die.   What could be more American Pie than a Pontiac?

I know because this was my second car…

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a 1966 Pontiac Tempest LeMans Sprint.

These pictures from www.cardomain.com brought back fond memories.  I can list every car I have ever owned in order… it’s a guy sort of thing… but this is not the point here.

That Pontiac had a special new Pontiac – built 230 cubic-inch overhead cam six power plant, the only such engine found in an American production car at that time.  This was available in this Sprint option package on two-doors with a four-barrel, high-compression 207 horsepower version,  marketed as an alternative to higher-priced European sport sedans, which had similar OHC engines.

This motor was hot and was fuel efficient!  Here is a picture.

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Then the idea of smaller more fuel efficient engines was lost.  The gas guzzling GTO with a huge eight cylinder took over and this type of engine became hot.  Europe’s idea of smaller, high performance fell to the idea of … just plain… BIG.

Bigger is better.   Faster is good.   Power is king.  These became  the American ideals and most of us (boomer) guys and gals bought into it.

This led society down an incorrect, unsustainable path of consumption worth mentioning now because of Pontiac’s recent death.

A recent BBC News article entitled “Pontiac RIP” by Nick Holland tells the tale.

Here is an excerpt from that article:

The GTO transformed Pontiac into a muscle car brand.

Pontiac has become the highest-profile victim of the crisis in the American car industry.  The decision this week by General Motors to discontinue the brand shocked a generation of petrol heads who fell in love with the all American muscle cars the company developed in the 1960 and 70s.

It is a great shame that one of America’s iconic brands is having to be removed from the automotive scene

We are talking about cars like the Pontiac Firebird, The Grand Am and the GTO.
Like Route 66, roadside diners and baseball all of these vehicles have become genuine artefacts of U.S. culture.

“If ever a car company defined swagger – Pontiac was it,” says Peter DeLorenzo who runs the Autoextremist.com blog.

“Pontiac delivered cars to the market bristling with a maverick, edgy appeal and genuine soul – a commodity so far removed from most of Detroit’s products then that it was striking,” he says.

Things began to change when the company employed John De Lorean, who later founded the ill-fated De Lorean Motor Company, as its new head of engineering in 1956.

Pontiac started test driving a saloon car fitted with powerful V8 engines.

However, the vehicle did not meet General Motors’ corporate guidelines because they were considered too fast and breached an agreement with other manufacturers within the GM group to avoid building performance cars.

Regardless of that, a handful of the cars were built and Pontiac salesman drove them around to test public reaction.  They got 5,000 orders.

Once the board at General Motors found out, the GTO was born.

The popularity of the car encouraged the company to transform itself into a performance brand.

Alongside the GTO the company developed the Grand Prix and the Firebird during the 1960s, all of them muscle cars.

The demise of Pontiac is a clue… the end of a wasteful non sustainable way… plus it’s part of  this economic slowdown that signals huge socio-economic changes.

The global financial correction has pushed equity markets down everywhere and ended as time Magazine puts it, “the end of excess”.

American society revered big. Bigger was better. The more one had… the bigger the house… the faster the car… the greater the consumption… the more a consumer was respected.

Perhaps no more.  Now being environmentally sensitive is cool.

This creates a distortion because green shares have been especially hard hit.

There is a reason for this.  A USA Today article entitled “Going green can cost too much green” by Alan Gomez may help explain why.

Here are excerpts from this article:

Going green isn’t easy, especially during a recession.

For two years, the city of Durango, Colo., bought electricity for all its government buildings from wind farms. The City Council ended that program this year, reverting to electricity derived from coal-burning plants and saving the cash-strapped city about $45,000.

“It’s very hard for us to lay off an employee to justify green power,” City Manager Ron LeBlanc said. “Those are the tradeoffs you have to face.”

Across the country, government agencies are either cutting or shrinking programs that use or fund renewable energy projects. Green power — from wind farms, solar power or other renewable energy sources — remains more expensive than traditional power sources.

As budgets shrink, some people have had to scale back their green ambitions.
Pennsylvania passed a comprehensive energy plan last July that included a $100 million program to encourage people to invest in solar energy. The Pennsylvania Sunshine Program would provide reimbursements to homeowners and small business owners who installed solar electric and solar hot water projects.
The program has yet to begin, and the state will start with only $30 million in grants, according to Scott Dunkelberger, executive director of the Commonwealth Financing Authority, which administers the funding of Pennsylvania’s economic development programs. “We just want to take on the debt that we need,” he said.
That has left some in Pennsylvania waiting.

Buyers and investors have been backing off green because of short term financial concerns. Yet the huge long term problems of sustainability have not been resolved. Driving old Pontiacs might be cheaper in the short run then building new energy efficient cars… but returning to “Gitiup Little GTO” will not solve the problem’s of the high energy costs that those dual quads consume nor deal with the pollution coming from the twin exhausts.

Wise investors with a medium and long term view can gain extra value by investing in the value created by distortions in green shares that are vital to society in the long term… but depressed more than the norm right now due to short term economic concerns.

One example of this is that a no car trend is also growing. Excerpts from A New York Times article entitled “In German Suburb, Life Goes On Without Cars”
by Elisabeth Rosenthal.

VAUBAN, Germany — Residents of this upscale community are suburban pioneers, going where few soccer moms or commuting executives have ever gone before: they have given up their cars.

Street parking, driveways and home garages are generally forbidden in this experimental new district on the outskirts of Freiburg, near the French and Swiss borders. Vauban’s streets are completely “car-free” — except the main thoroughfare, where the tram to downtown Freiburg runs, and a few streets on one edge of the community. Car ownership is allowed, but there are only two places to park — large garages at the edge of the development, where a car-owner buys a space, for $40,000, along with a home.

Ecuador Cars

Ecuador has some green potential in this way because Ecuador has a great import law for cars.  You cannot import used cars to Ecuador.  You can only import new cars only…ie. in 2009 a 2008 or newer.  This helps keep junkers, gas guzzlers and smokey, old wrecks off the road.

Merri and I encourage people to forget the car in Ecuador… for several reasons.

First, it is a hassle.

Second, the taxes are  high for imported vehicles. The norm for taxes for a regular car is near 50% and as the price of the car rises…so does the percentage of tax.  Cars over $100,000 have a 100% tax.

Third, hiring a car with driver (this what Merri and I do) is really inexpensive. Cars used for commerce (i,e. taxis) can be imported into Ecuador tax free. Gas is cheap (about $1.50 a gallon) and drivers do not earn a lot.  These facts often make it cheaper to hire a car with driver than to own a car.

Using a car and driver avoids getting lost.  You eliminate the legal hassle of fender benders and provide employment. Very few of the many people I know who have moved to Ecuador have a car.

Learn more about Ecuador cars at Driving in Ecuador

Owning one’s car is ingrained in the North American mentality. I am reminded of this every time I drive through a city during commuter hours. There are miles upon miles of individuals each sitting in one car.

I understand this… the minute I turned 16  I had to get a car… a big one that was fast.

That mindset was an error that the world (and many individual budgets) can no longer afford… so say bye bye Miss American Pie and so long Little GTO.  Invest in green and when possible do what you can to eliminate one person… one car.

Gary

Learn more about green investing at our upcoming International investing and business courses.

July 24-26 IBEZ North Carolina

Oct. 9-11 IBEZ North Carolina

Nov. 6-8 IBEZ Ecuador

Nov. 9-10 Imbabura Real Estate Tour

Nov. 11-14 Ecuador Coastal Real Estate Tour

Attend any two Ecuador courses or tours in a calendar month…$949 for one.  $1,349 for two.

Attend any three Ecuador courses or tours in a calendar month…$1,199 for one.  $1,799 for two.

You can read the entire article “Going green can cost too much green” at www.usatoday.com/money/industries/energy/2009-05-03-greencities_N.htm

You can read the entire article German Suburb, Life Goes On Without Cars at http://www.nytimes.com/2009/05/12/science/earth/12suburb.html?_r=1&th&emc=th

Ecuador Beach Property – Jama


Yesterday’s message began a series on Ecuador beach property because I believe there is extra value on the beach now due to  rumors that have scared some buyers away.

Looking beyond the rumor allows us to take advantage of the truism, “Buy on the rumor and sell on the news.”

This provides us with extra opportunity and life on a beautiful beach like this.

ecuador-beach-jama

Ecuador beach north of Bahia.

One recent rumor came from a BBC  article entitled “Americas on alert for sea level rise” by James Painter the 
BBC Latin America analyst.

Excerpts of the article say:

Coastal areas in parts of Mexico are among those under threat

Climate change experts in North and South America are increasingly worried by the potentially devastating implications of higher estimates for possible sea level rises.

The Americas have until now been seen as less vulnerable than other parts of the world like low-lying Pacific islands, Vietnam or Bangladesh.

But the increase in the ranges for anticipated sea level rises presented at a meeting of scientists in Copenhagen in March has alarmed observers in the region.

Parts of the Caribbean, Mexico and Ecuador are seen as most at risk. New York City and southern parts of Florida are also thought to be particularly vulnerable.

This sent shivers up the spine of many investors who had been thinking about buying on Ecuador’s coast.   That is because they did not read the entire article.

Further on the article says:

According to a recent World Bank study of more than 80 developing countries, Ecuador features among the top 10 countries likely to be most affected by sea level rise when calculated as a percentage of its GDP.

Argentina, Mexico and Jamaica also appear in the top 10 when measured by the impact of a one-metre rise on agricultural lands.

This makes Ecuador’s beaches to sound vulnerable until you read on where the article says:

New research led by Dr Jianjun Yin at Florida State University suggests that whereas South American coastal cities are not at threat this century from an extra sea level rise caused by Amoc, New York City and the state of Florida are.
The coastal plains around the city of Guayaquil in Ecuador, the country’s main economic hub, are also known to be vulnerable to a combination of sea level rises, storms and sea surges.

A recent study by researchers at Espol, a science institute in Guayaquil, suggested that even a half-metre sea level rise would put the storm drainage system in the southern part of the city under severe strain, possibly causing it to collapse.

The concern about Ecuador’s coast is the rumor.  Here is the news.  Guayaquil… which is inland  is at risk… a huge economic problem yes… but not for the Ecuador beach cities.  Should these rising water problems come true… the coastal cities in Ecuador may become even more important and valuable.

Do not get me wrong… global warming may be a huge problem everywhere… but may not be  a concern in our life times on Ecuador’s coast.  In fact as higher water driving people from Florida and Guayaquil could create opportunity for Ecuador beach property. I have put the address of the entire BBC article at the end of this message.

I am adding a stronger buy signal for Ecuador beach property and this week we are running a series looking at Ecuador beach areas from Salinas to Esmeraldas as shown on an excerpt of this Ecuador map.

ecuador-beach-jama

Those who have been reading our messages for any length of time know that I have focused my efforts on the middle portion of Ecuador’s beach from Manta to Bahia in the province of Manabi.

You can see why I consider Manta the key to Ecuador beach growth here.

I checked water levels carefully before buying here. Last year before construction began, there were record rains. Much of Ecuador’s coast looked like this.

ecuador-beach-jama

The land where the condos were to be built looked like this.

ecuador-beach-jama

Here are the condos there now.

ecuador-beach-jama

See why I like these San Clemente beach condos any why I have invested in here.

However there are many other great Ecuador beach areas I would like to share so I asked a few of the many contacts I have made, up and down the coast, to tell us more about the beaches where they are in Ecuador.

Today we look north of San Clemente from Bahia… north with an article by Gary Swenson an American who lives in this area with his family and brother Larry.

Bahia North by Gary Swenson

I have been an adventurer all of my life. Driving race cars all over the world for a living and traveling the Pacific for four years with my sailboat.

ecuador-beach-jama

Gary Swenson’s  race car.

ecuador-beach-jama

Gary Swenson’s sailboat.

I found Ecuador on that four year Pacific sailing adventure.  I had visited many countries in my work and exercising my passion. The people here made me feel like family. I have been here now for 8 years. We have been investing in North Coastal real estate for 7 of those 8 years, and have close to 30 properties on the beach. Some with a quarter acre, and some with as much as one mile of beachfront.

I have walked close to 50 miles of beachfront myself, searching for the most beautiful pieces, and as a bonus have also found many pre-Colombian artifacts just lying on the beach!

ecuador-beach-jama

Treasures found on the beach.

I have concentrated on the North Coast for one main reason, and that is that it is the last area of the coast of Ecuador that was mainly undeveloped, somewhat inaccessible, and the prices affordable. That is all changing right now! Many properties that I have purchased now have new coastal highways and roads being built right past them as they open up this coast. This area is slowly being found out by Ecuadorians, foreign retirees and investors alike.

ecuador-beach-jama

New road construction near Bahia.

The President of Ecuador knows that tourism is a big part of the future here and is spending the money necessary to develop the coastal areas.

One of the largest developments in Ecuador is on the North Coast and largely unknown to the rest of the outside world is in Same (pronounced saw may). It is a sleepy tourist town (true for most of the North coast) that wakes up during Ecuadorian holiday times and vacation times for the kids from Quito.

It is only 30 minutes from the Esmeraldes airport. Years ago Esmeraldes was a wild place and somewhat dangerous, but that was years ago. I find it safe and friendly, with better roads and infrastructure that is better than most of the rest of Ecuador.

There are also other well developed areas such as Atacames (pronounced otta-calm-es), Sua (Sue-ah), Pedernales with high rise condos and hotels.

ecuador-beach-jama

Then there are hidden gems like, Cojimies with miles of coconut plantations lining the beaches, Mompiche, Estero De Platino and Canoa with great surfing, and Jama/ElMatal for kite boarding, river rafting, and just relaxing if you like.

ecuador-beach-jama

More Ecuador beach north of Bahia.

ecuador-beach-jama

Sunny and underpopulated.

Bahia De Caraquez with a laid back Mediterranean feel and an international Marina, great schools and theater.

ecuador-beach-jama

Bahia.

This coast has great diversity and friendly people where you can walk most beaches any time of the day or night safely. With your choice of miles of virgin beachfront to choose from.

This is paradise!

This North coast also has many mini climates from a dry tropical climate equal to Santa Barbara, California in the spring with no humidity to a more lush semi wet tropical, lush green terrain all year long.

ecuador-beach-jama

Lush beaches

There are also a few larger towns with night life, restaurants, hotels and touristy things do do in between the many friendly small towns with just a restaurant and hostel.

ecuador-beach-jama

Gary Swenson and his son Archie on the beach.

Here you can find whatever type of beach that you would like to live on. From high banks with a bird’s eye view overlooking miles of coastline while watching the whales and dolphins play in the swells, or fishing, to low lying sandy beaches that you can walk and wiggle your toes in for miles!

Yes, you can find what your heart desires here.

ecuador-beach-jama

Gary Swenson fishing.

To get to the Bahia area you fly into Quito and take a short 1/2 hour flight to the Manta airport and then a 1 hour taxi or bus ride to Bahia.

To Esmeraldes it is a half hour flight from Quito. The airport in San Vicente is in the middle of a dispute with the city and is supposed to be resolved this year and restart flights from Quito.

I have eaten at just about every restaurant in Bahia, San Vicente, Canoa, Jama, and others further north and rarely have a bad meal! The average cost of a lunch (almuerzo) including fresh seafood, chicken or meat, small salad, rice, beans, soup of the day, and fruit juice is between $1 and $2, and the food and juice is all fresh! Nothing out of a can here. The population of Bahia and the surrounding areas is around 20,000 but you would never know it as it is a tourist town and only fills on some weekends and holidays.

The weather from San Clemente/Bahia to just north of Pedernales is a dry tropical climate and is similar to the climate of south central California in the spring/early summer. It averages 75 to 80 degrees and very low humidity, and a nice sea breeze for 7 months a year. We have 2 months that they call the rainy season that we have a 1 or 2 hour rain at night maybe twice a week. Very seldom does it rain during the day. This time of the year it averages 80 to 95 degrees and is slightly more humid. Then there is what the locals call summer when the temperatures are 70 to 75 degrees every day and mostly cloudy with a little afternoon sun. It could be true that Ecuador has the best climate in the world!

ecuador-beach-jama

Ecuador beach sunset near Jama.

I believe in Ecuador, and the future holds many good things here for the people that have a little adventure in their souls.  Gary Swenson

ecuador-beach-jama

Gary Swenson’s family on the beach.

You can learn more about this area from Gary Swenson at www.ecuadorbeachfront.com

or email lswenson@bendcable.com

Gary Swenson and his brother, Larry, own an Ecuador beach development at Coco Beach Village.

ecuador-beach-jama

Gary & Larry Swenson’s project.

They have a gated community of 1/4 acre beachfront lots with homes that start at $99,000 with underground utilities, tennis courts, swimming pool, clubhouse.  This is in the friendly Jama/El Matal  community on Ecuador’s beach.

ecuador-beach-jama

Your own hammock near Jama.

Until next message, good global investing.

Gary

Our 2-4-1 offer expires in three days.

Join us and visit Ecuador beach property with our 2-4-1 tours this May and July.

See great May Ecuador airfares here.

We have three Ecuador tours scheduled for May and July 2009.

Ecuador Coastal Real Estate Tour May 16-17

Imbabura-Cotacachi Real Estate Tour May 20-21

Ecuador Amazon Herbal Tour May 22-24

Merri and I will not be on these tours but we do want to meet you. So to make sure we can meet, we will let you attend these either one of the May real estate tours free if you enroll in one of our three International Made EZ  courses, in July, October or November.

You get two courses for the price of one.  Enroll in any of these courses that Merri and I will conduct below and choose either May real estate tour free.

July 24-26 IBEZ North Carolina + Tangled Web

Oct. 9-11 IBEZ North Carolina + Tangled Web

Nov. 6-8  IBEZ Cotacachi + Tangled Web

You can enroll in one, two or three of these courses below

Ecuador Coastal Real Estate Tour May 16-17. $499 Enroll here.   $749 For a couple.

Imbabura-Cotacachi Real Estate Tour May 20-21.  $499 Enroll here.  $749 For a couple.

Ecuador Amazon Herbal Tour May 22-24.  $399 Enroll here. $499 For a couple.

Attend any two Ecuador courses or tours in a calendar month…$949 for one.  $1,349 for two.

Attend any three Ecuador courses or tours in a calendar month…$1,199 for one.  $1,799 for two.

Our 2-4-1 offer expires at midnight April 30, 2009.

See the entire BBC article Americas on alert for sea level rise at http://news.bbc.co.uk/2/hi/americas/7977263.stm

Multi Currency Ideas


Multi currency solutions to inflation are needed.

Inflation will certainly come from the current global economic bailout.

Every multi currency investor needs to mold a personal multi currency solution to meet their specific needs. Whatever individual tactic is used, it will normally work better if it includes multi currency diversification based on a search for multi currency value.

Yesterday’s message Multi Currency Warning looked at seven economic fundamentals that we can relay on during this downwards correction and stated:

The current rush to the US dollar and yen create a monumental opportunity! There will be a time to invest in the very currencies that are tumbling now.

Why am I sure of inflation?

One of the seven multi currency fundamentals (#2) is that: Government involvement in global economics and business may dampen the sharper acceleration of the natural financial rhythm but eventually makes the corrections worse.

A recent article in USA Today covering Alan Greenspan’s testimony to the US Congress said: that the “Former Federal Reserve chairman Alan Greenspan told angry lawmakers” about his shock.

I wonder? We these angry OR frightened lawmakers? I suspect that a few weeks from election day the better word would have been SCARED.

Fear destroys reason if one is not trained to deal with it. Most of Western society is not trained to deal with fear. William James aptly put it this way.

“In civilized life it has at last become possible for large numbers of people to pass from the cradle to the grave without ever having had a pang of genuine fear. Many of us need an attack of mental disease to teach us the meaning of the word.”

Since politicians are also human beings they too lose reason when they give way to fear. They seem to definitely get a mental disease!

For example what is the cause of today’s economic crisis? Too much debt.

Yet yesterday’s BBC article entitled “Brown defending higher borrowing” says:

“Gordon Brown is defending his plans to increase government borrowing in order to tackle the economic downturn in a speech in London.

The prime minister is telling business leaders it is the right time to boost demand with government spending.

Opposition parties have attacked the current levels of debt, saying Britain is inadequately prepared for recession.

Leading economists have also criticised the government over its spending plans and called for tax cuts instead.

In a letter to a Sunday newspaper, a number of economists warned against an expansion of government spending as a way of stimulating the economy.

They described a focus on public works projects and higher spending as “misguided and discredited”.

The latest quarterly public debt figures hit a record £37.6 billion – higher than the whole of the previous year. Yet Brown said: The responsible course is to borrow now to maintain growth and output.”

I have little doubt that England’s debt will grow…as will America’s, and Europe’s and Japan’s because of…fear.

The borrowed money will be spent by government’s to, as Brown says, “kick start the economy”. The economy will recover but if the fundamental about government inefficiency remans true, it will not recover as it could and should.

The price of this borrowing will be inflation…the loss of purchasing power.

Now here is where frightened politics and politicians get involved.

The same BBC article also said:

“Over the weekend, Mr Brown paid a brief visit to Glenrothes in Scotland as part of a by-election campaign and made predictions food and fuel bills would begin to come down next year.

He also hinted falling oil prices could lead to further co-ordinated interest rate cuts.

“Now inflation is actually coming down over the next few months and that will mean that it gives scope to all the monetary authorities, including the Bank of England, round the world to make a decision about interest rates,” he told the BBC.”

Brown is probably wrong. Inflation will not come down…which is okay for those who know what to do.

Do not be misled. Chances are that Western governments will borrow more than they should. Inflation will follow.

If this belief is correct then the best investments will be shares, commodities and real estate in a diversified basket of strong currencies.

What will make a currency strong?

Fundamentals of currency value (purchasing power potential) include:

A: Interest rate.
B: Inflation rate a three levels – labor – wholesale and consumer prices.
C: Trade balance.
D: Current account.
E: Debt as % of GDP.
F: Debt as % of government income and spending.
G: Amount and velocity of direction in government deficit.

Ideally we want to invest in currencies of countries that offer an interest rate above the local inflation rate, that have a positive trade balance, current account, falling government debt and deficit versus government income.

This combination of qualities in a currency are as rare as hen’s teeth and will become even harder to find during and after this downturn.

As the Western economies stall, their imports will slow. This will slow growth in emerging economies. Governments everywhere will be pressed. Fear will grow. Reason will diminish and government borrowing will increase everywhere.

Inflation will grow. Multi currency investing will become increasingly a relative process….looking for the currencies that are least bad.

I hope to help you fight this inflation with multi currency investing!

Gary

We are studying three multi currency solutions to inflation in our multi currency course. You can subscribe to gain access to these ideas here.

Join us at one of our next to International investing courses in Cotacachi Ecuador this winter.

Learn more about economic safety this November. Join Merri, me, Steve, Kjetil Haugan or Thor Anderson of Vistazul and Peter Conradsen of Jyske Global Asset Management in Cotacachi Ecuador. We’ll review economic conditions, Ecuador real estate, my entire portfolio and investing and business ideas for the months ahead.

Nov 7-9 2008 International Investing and Business Made EZ Ecuador
http://www.garyascott.com/catalog/international-business-made-ez-ecuador

Feb. 13-15 International Business & Investing Made EZ

See the wonderful balconies in the Primavera condos at for sale at $46,000 in Cotacachi.

multi-currency-Ecuador-condo-interior

Nov 10-11 Imbabura Real Estate tour
http://www.garyascott.com/catalog/ecuador-real-estat

Feb. 16-17 Imbabura Real Estate Tour

Then travel to the coast. Enjoy the Vistazul swimming pool on Ecuador’s Pacific.

Picture 9

November 12-15, 2008 Ecuador Coastal Real Estate Tour; Quito Real Estate Tour
http://www.garyascott.com/catalog/ecuador-coastal-real-estate-tour

See discounts for two or more of these courses and tours

Enjoy Ecuador’s music.

Ecuador-music

Enjoy flowers and beauty.

Ecuador-flowers

Enjoy the friendly staff at our hotel.

international-club

Better still join us all year in Ecuador! See our schedule of 26 courses, tours, mingos and expeditions we’ll conduct in 2009.

Multi Currency Problems & Solutions


Multi currency investing becomes increasingly harder as increasing numbers of banks abroad refuse to accept US customers. A recent message at this site shared how the large Dutch Bank, ABN Amro, stopped accepting US customers and gave existing US clients 30 days to liquidate their securities.  If you missed this see Multi Currency Investments Easier

multi-currency-meeting-in-autumn

See below how autumnal colors can help you solve multi currency problems.

Now another large Swiss bank has found it too much to deal with aggressive US regulatory tactics and shut down its US business. Here is what a recent Financial Times article entitled “UBS tells unit staff to avoid US visits” by Haig Simonian says:

“UBS has told members of its former private banking team responsible for rich US clients not to travel to America.  The Swiss bank has also made lawyers available to the more than 50 bankers involved, many of whom have left UBS since it decided last November to wind down its cross-border private banking business for US ­customers.  The move follows the recent indictment of one of the unit’s former senior executives, Bradley Birkenfeld, who US authorities have accused of helping a billionaire client evade taxes. Mr Birkenfeld has pleaded not guilty and his lawyers have made no public statement on the matter.”

I am very pleased that Jyske Bank, my banker for about 25 years has decided to stand by its American customers. The bank created a wholly owned subsidiary Jyske Global Asset Management (JGAM) that is registered with the SEC.

The changes, however, create many questions which I would like to answer at this site. Please send your questions.

As a financial publisher, I cannot give independent advice.  I cannot even give you a personal reply nor comment on your specific personal investments or portfolio.  I can, however, answer your questions here in a general way.

Here is the first question received.

JYSKE BANK QUESTION

“What is going on with Jyske Bank and their JGAM program which will make it more difficult to do multi currency sandwiches unless one has invested at least 1 million with the bank.  As I understand it, my portfolio will be managed without my input which does not make me feel comfortable.  What is your take on this?”

JYSKE BANK ANSWER

I have spent hours reviewing how JGAM will work with Thomas Fischer.

First, let me clarify several points…the first being that only Americans will use JGAM.  For non Americans it is business as usual at Jyske.  This will have a pretty big impact on my business since I have so many non US readers.  Our site ranks well for visits in Ecuador, Canada, China, Germany, New Zealand, Singapore, United Kingdom and Mexico as well as the USA.

This means I’ll have to write everything twice once for us Yanks and once for the rest of the world.

Second, minimums have not changed at all.  For some time the minimum has been $50,000 to open and account and $100,000 is minimum for a multi currency sandwich…not 1 million.

Though JGAM will manage each portfolio on a discretionary basis, the client still has a great deal of input on how they will manage each account.

Jyske has a number of portfolios ranging from low risk – medium risk – high risk and speculative.

These portfolios are then again split into portfolios with and without US securities.

Then the accounts are again split  based on assets under management.

For example, clients with less than $200,000 will have a different diversification than larger accounts.

Every portfolio is monitored and tracked on an individual basis.  There is no specific JGAM portfolio so all investors will have their own regular performance up-date.

The JGAM investment committee will meet once a month deciding on the tactical weight of the asset classes and the underlying investments.

When a client joins, the Jyske account manager will work first to help the client decide on a risk profile. Once this is decided, Jyske will be invested in one of the 16 options above.   Every investor’s portfolio will be designed and will change according to the time of entering the portfolio.

Here are the latest recommendations as of late May 2008 of the speculative NON US dollar portfolio.

Asset type                Recommendation       Tactical weight
Fixed Income                  Underweight                  20
Equities                           Neutral                          60
Alternatives                     Overweight                    20

Cash                                Neutral                            0
Investment                               %
Asset type

FIXED INCOME
USD       7.2% Porsche 01.02.2049                         3%
USD       7.875% Turanalem 02.06.2010                 2%
USD       8.5%  Titan Petrochemicals 18.03.2012    1%
EUR       Var% Bombardier 15.11.2013                     3%
GBP       8.7% Cable & Wireless 06.08.2012             1%
AUD       5.5% Rabobank 27.01.2010                       3%
BRL       12.5% Brazil 15.01.2016                              2%
HUF       6.75% Hungary 12.10.2010                        2%
TRY       15% Intl. Bank Recon 15.07.2009                2%
ISK         8.5% Rikisbref 12.06.2009                         1%
Subtotal                                                                  20%

EQUITIES
CHF                   Novartis                                      4.2%
EUR                   Siemens AG                                 4.2%
EUR                   Adidas AG                                   4.2%
DKK                   Carlsberg A/S                             4.2%
EUR                   EDF Energies Nouvelle                4.2%
DKK                   NKT Holding                               4.2%
DKK                   Neurosearch                               4.2%
EUR                   Bayer AG                                     4.2%
EUR                   L’Oreal                                        4.2%
SEK                    Hennes & Mauritz AB                  4.2%
Latin Equities Mutual Fund       4.0%
Chinese Equities Fund              4.0%
Indian Equities Fund                 4.0%
European Equities Fund             5.0%
Subtotal                                                              60.0%

ALTERNATIVES
USD                    ETFS Crude Oil – CRUD LN         10.0%
USD                    ETFS Aluminium l ALUM LN          5.0%
USD      ETFS Metal Secs Phys. Gold – PHAU LN       5.0%
Subtotal                                                                 20.0%

CASH                                                                       0
TOTAL                                                                 100.0%

This looks like an interesting portfolio, and in future messages we’ll be looking at
the equities in this portfolio.  Plus we will review the other three (high medium and low risk) portfolios.

I believe that Multi currency investing is a must in these times of inflation.   Using international investment managers still has main advantages.  First, this provides some excellent asset protection. This also provides access to more experienced multi currency managers with different points of economic and world view than anywhere in just North America.

This also provides some privacy.

May I add one more word on privacy?  If you are a law abiding citizen then an overseas account gives you as much privacy as you need.  If you break the law and have almost any government looking for your financial data, then no system or structure you use is enough.

I have not touched on this subject for years because this is such old news…but knowing we have many new readers…let me repeat what I shared with readers clear back in the 1990s.  “Bank privacy is dead”.

Here are just a few of my articles at this site in the archives  from the 1990s and early 2000s.  Please read them carefully.
http://www.garyascott.com/privacy/77/
http://www.garyascott.com/privacy/50/
http://www.garyascott.com/privacy/167/
http://www.garyascott.com/privacy/60/
http://www.garyascott.com/privacy/59/

Yet here is one more brand new story….about what is known as the most private place in the world…Liechtenstein.

Here is a direct quote from a February 22, 2008 BBC article entitled
“Liechtenstein fury at German tax snooping”  by Steven Rosenberg

“Liechtenstein also has the reputation of being one of the most secretive tax havens in the world.

“Just ask the Organisation for Economic Co-operation and Development.

“This financial watchdog says Liechtenstein is one of only three states left on its blacklist of ‘uncooperative tax havens’ (the others are not a million miles away – Monaco and Andorra).

“Liechtenstein this week attacked the authorities in Berlin for buying information on German businessmen clients that have bank accounts in the tiny Alpine principality.

“Germany has launched a tax evasion investigation using the data, which was supplied by an anonymous informant who was reportedly paid 5m euros (£3.75m; $7.3m). “

So I will say this again.  Please for your sake, don’t break the law anywhere…anytime.  This could come back to haunt you in unexpected ways.

Here is an example.  The data the German authorities obtained about accounts in Liechtenstein covered people from around the world…not just Germany…so the Germans began sharing it.

According to my European banking sources, only one European tax authority turned the data down…the Danes.   They believed that since this data had been illegally obtained it should not be used.

One reason I have banked for so many years with Jyske Bank is the same reason why I live half the year in Ecuador.

I like Jyske’s services, their very reasonable fees and their solid banking foundation…but in addition I like the Danes…feel an underlying honesty, sense of fair play and sound judgement.  The have never let me down which is why I am not surprised that they worked for several years setting up this structure so they can continue to serve Americans…when so many other banks have cut us Yanks loose and run.

I expect that the service JGAM will provide is still a work in progress and have noted the people there questioning, adapting and smoothing out a new system.

Everything I have seen to date suggests that I will be happy with this new program
because the people there like I have always seen seem focused on giving a service that is safe, wealth preserving, ground breaking and easy for the customer.

I’ll be adapting our multi currency course to reflect the changes and will keep you informed about new ways we can continue to learn about this mysterious, interesting and profitable world of multi currency investing.

I am not paid a penny for writing this about Jyske Bank and have always been able to write that I keep them as my bank simply because I like them the best of all banks I have used.

I can continue writing this and hope until next message that you find all these qualities with whomever advises you on your finances, savings and wealth.

Gary

You can join me with Thomas Fischer of JGAM at our October 2-5 lifestyle International Investing & Business Made EZ North Carolina

We have selected these dates for our next course because this is traditionally the weekend when the fall colors are best.  We’ll meet here for a meal multi-currency-meeting-place

at our house on the farm.

Here is Thomas Fischer talking with a group at a previous course.

multi-currency-meeting

You can still  make to our June 19-21 Ecuador Shaman Tour

See dates for our Autumn courses and tours:

Ecuador Coastal-Quito Real Estate Tour

Ecuador-beach-meeting

We’ll see properties in this developmet and stay at and walk that beach below.

Ecuador Super Thinking + Spanish Course

Ecuador Imbabura Real Estate Tour

See houses for sale in the San Miguel development
Cotacachi-real-estate-for-sale

like this.

cotacachi-house-for-sale
Learn about this Imbabura real estate for sale at Cotacachi Real Estate at San Miguel

Ecuador Ecuador Import Export Course

International Investing and Business Made EZ Ecuador

See discounts for attending more than one course.

Beat Inflation Micro Business II


The best way to beat inflation is to always be able to serve through business.

This is why we are providing a FREE course on how to develop your own internet business written by Michelle Toole.

Here is Michelle’s 21st lesson.

THE NEXT BEST THING, RSS FEED

You may have been seeing those little orange RSS or XML buttons around the Internet. If you were wondering what they are.…

The RSS Feed is truly “the next big thing” — you can use it to get news feeds from CNN or BBC, as well as just about anything else, including news on upcoming movies, DVD releases, your favorite musician’s tour updates, etc.

Once you get started, it’s like having your favorite parts of the Web come to you. No need to go out and check for updates all the time.

“RSS” means “Really Simple Syndication.” What it means to you is that when you subscribe to a site that has an RSS Feed, you can keep up-to-date without having to check the site every day or week.  How nice is that?

How do you get started? Easy!

Download a free RSS Reader first. This is special software that reads the RSS feeds.  Go to Windows – RssReader, http://www.rssreader.com/

or Mac — NetNewsWire  http://ranchero.com/netnewswire/ for downloads

Don’t want to download new software?  Just click on buttons, on the web site you are interested in that say Subscribe through My Yahoo! or My MSN or Google…

If you have a web site and are interested in having an RSS option or syndication for your readers, you will need to acquire RSS creation software.  It is a great option to keep your readers coming back for more.

Look for my future articles where we discuss additional monetization options, search engine optimization, incoming links, e-zines, link exchange programs and much more…..

You can check out Michelle’s web site at http://healthy-holistic-living.com. To see how and what tools she used to create a successful on-line business go to http://sitesell-sbi.com

Learn about Gary Scott’s on line Self Publishing Course

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