Tag Archive | "Canada"

Special Canadian Value


How does the Canadian Stock Market compare to the US markets?  Yesterday’s message looked at the Concept Conversion Trick (1) and how the American Dream has become the Canadian Dream.  Canada’s middle class earns more, works less hours and lives longer than the middle class in the US.  Canadians have a cradle to grave health care system and an excellent education system.  Year after year, Canada scores in the top 10 happiest countries in the world.

So, let’s compare the Canadian Stock Market to the US market using a mathematical, good value approach.

The Canadian Market is not ranked as a good value developed market by Keppler Asset Management, but it has so many good value qualities that I personally added this market to my portfolio, using the iShares MSCI Canada Country ETF (symbol EWC).

In January 2017, a Purposeful investing Course update looked at some reasons why the Canadian Market offered special opportunity.  This update examines reasons why that good value still exists.

Over the last six months, the Canadian ETF (EWC) has risen 3.2% as shown in the Finance.yahoo.com chart below.

This ETF is a passive fund that tracks the investment results of the MSCI Canada Index.  The fund invests at least 90% of its assets in the securities of its underlying index which consists of stocks traded primarily on the Toronto Stock Exchange.

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The S&P 500, Dow and NASDAQ indices (red, green and purple) have outperformed the Canadian Index in these last six months.

However, long term, the Canadian MSCI Index has strongly outperformed both the Dow and S&P and is about equal in growth to the NASDAQ index (in red).

yahoo.com

The strong Canadian performance in spite a weakening of the Canadian dollar.  This means that Canadian share performance has been even stronger than the chart comparison suggests.  Canadian shares rose with extra strength to make up for the currency loss.

In the last six months, however, the US dollar has started to fall versus the Canadian dollar.  This could give the Canadian market an extra boost in US dollar terms.

yahoo.com

We can also see strength in the Canadian dollar at the Economist’s review of “Trade Balances, Budget Balances and Interest Rates” (1).  The US dollar currently has the advantage on interest and trade balance but these factors can shift quite quickly compared to budget balance.  The Canadians have a much better budget balance position.  Simply put, the Canadian government creates less debt in relation to GDP than the US government does.

economist.com

We can also see from Keppler’s basic analysis that Canadian shares overall represent much better value.

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Canadian shares are selling at 2 times book compared to 3.09 in the US.  Price earnings is  22.5 compared to 23.9 and the 2.84%  average dividend yield is much stronger than America’s 2.01%.

The trending math we follow at Tradestops.com suggests that Canada (or EWC at least) is still in a buy mode.

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Tradestops gave an entry alert a year ago in July 2016.  The stock indicator shows that the upwards trend remains.  The stock has a low volatility ratio of 14.33% and currently the stop price is $23.74.

You can learn how to use Tradestops.com below. (2)

Should we invest in the Canadian Market?   The Canadian Market is a well regulated market, in a safe country with sane politics.  The numerous suggestions above suggest that this market is in a rising trend short term and has been a solid market over a long period of time.

Over the last six months a poor value market (the US) has outperformed a neutral to good value market (Canada).  Eventually the fundamentals of math and common sense will turn this trend around.  Logic leads us to expect that, given time, the Canadian market will do well in relationship to the US market.  This does not guarantee great performance as all markets could fall.

The final decision of whether Canada represents a good place to store value for you depends on how much risk and what time horizons suit your nature and circumstances.  There is risk in every investment, but we get to decide how much risk we take and investing in the Canadian MSCI looks as if a sound investment with minimum risk at this time.

Gary

(1) Learn more about Tradestops.com here

(2) www.economist.com: Trade exchange rates budget balances and interest rates

Gary

Disaster When the Other Shoe Drops

Warren Buffet once warned against the Cinderella effect.

He said “Don’t be fooled by that Cinderella feeling you get from great returns.  Nothing sedates rationality like large doses of effortless money.  After a heady experience of that kind, normally sensible people drift into behavior akin to that of Cinderella at the ball.  They know the party must end but nevertheless hate to miss a single minute of what is one helluva party.  Therefore, the giddy participants all plan to leave just seconds before midnight. There’s a problem, though: They are dancing in a room in which the clocks have no hands.”

Cinderella may have lost a shoe when she fled the party.  We can lose much more when we rush from a crashing stock market.

There is inherent disaster building in rising markets… especially now.  Don’t wait until its too late.  Stocks, bonds and gold are all rising at the same time.  Almost everyone feels good.  We should not.  You and I should not be like most investors, because the clock of economic reckoning is ticking though no wants to see it.  Nothing rises forever and especially… not everything at the same time.

Recently the Dow Industrial and NASDAQ had record high closes.  Bitcoin has tripled this year.  Gold reached its highest price in seven months.  This rise of all asset classes is creating distortions that when corrected will set most investors back for years.

Simply put, the good time feelings are pushing prices too high.

Complacency in the markets, as the U.S. moves into the late stages of the economic growth cycle, destroys value.   Share prices will drop.  The only question is when.  Signs such as rising interest rates, declines in housing, along with lower auto and retail sales suggest that the slow down may be sooner rather than later.  The price of assets will fall.

There were a couple of  warning signals yesterday.  

Dollar weakness is a sign.

A Wall Street journal article yesterday “Dollar Gets Squeezed From All Sides” says: Greenback is down 5.6% this year, its worst two-quarter decline since 2011, as investors see more growth overseas

The dollar suffered through its worst stretch in six years during the first half of 2017, as investors turned more confident that economic recoveries around the world are gaining on or surpassing growth in the U.S.

The currency lost 1% last week against a basket of major peers tracked by The Wall Street Journal, bringing its decline for the year to 5.6%. That is the dollar’s largest two-quarter percentage decline since 2011.

A weak US dollar can draw investors out of the US and into other markets. The shift will cause a US market crash.

The 1987 Secular Cycle is near its end. 

Secular cycles in the market tend to run 30 years. History shows that markets run on recurrent patterns of change.  There are periods of expansion followed by periods of stagnation and decline.  Cyclical market cycles generally last 4 years, with bull and bear market phases lasting 1–3 years, while Secular cycles last about 30 years.  The last big shift was in 1987.

Another WSJ article yesterday “For Whom the Bell Tolls, Sell” asks: Is this a bull market or a mania? You never know for sure, except in retrospect.

You think this market’s crazy?  One day in early 1987, with Wall Street humming, a meeting after trading closed involved several cases of champagne. The Dow Jones Industrial Average had breached 2000 that day, a cause for celebration. A week and a half later, more champagne was ordered when the average passed 2100. Then again a few weeks later for 2200. Eventually my boss stopped buying bubbly when breaking records became the norm.

On Friday, Oct. 16, 1987, the average dropped 108 points. The market truly crashed the next Monday, dropping 508 points, or 22.6%. In retrospect, there had been signs all over the place.  How did everyone miss them? Well, as the old Wall Street adage goes, no one rings a bell at the top (or bottom) of the market.

Yet everyone wants to stay at the party.

No one knows when the global economic clock will strike midnight.  However, there is a way to be sure that our investments and savings will survive when the clock strikes twelve.

Here is what to do.  Choose investments based on markets instead of shares, diversify in value, rely on financial rather than economic news and keep investing simple, easy and at a low cost.

Diversify in value markets, not shares.  One strategy is to invest in country ETFs that easily provide diversified, risk-controlled investments in countries with stock markets of good value.  These ETFs provide an easy, simple and effective approach to zeroing in on value.  Little management and less guesswork is required.  The expense ratios for most ETFs are lower than those of the average mutual funds.  Plus a single country ETF provides diversification equal to investing in dozens, even hundreds of shares.

A minimum of knowledge, time, management or guesswork are required.  The investment is simply a diversified portfolio of most of the shares in a good value stock market.

 

The importance of easy, transparent and inexpensive.  Keeping investing simple is one of the most valuable, but least looked at, ways to avoid disaster.  Simple and easy investing saves time.  How much is your time worth?  Simple investing costs less and avoids fast decisions during stressful times in complex situations where we are most likely to get it wrong.

Fear, regret and greed are an investor’s chief problem.  Human nature causes  investors to sell winners too soon, and hold losers too long.

Easy to use, low cost, mathematically based habits and routines help protect against negative emotions and impulse investing.

Take control of your investing.  Make decisions based on data and discipline, not gut feelings.  The Purposeful investing Course (Pi) teaches math based, low cost ways to diversify in good value markets and in ETFs  that cover these markets.  This course is based on my 50 years of investing experience combined with wisdom gained from some of the world’s best investment managers and economic mathematical scientists.

Enjoy Repeated Wealth With Pi

Pi’s mission is to make it easy for anyone to have a strategy and tactics that maintain safety and turn market turmoil into extra profit.

One secret is to invest with a purpose beyond the immediate returns.  Another tactic is to invest so you have staying power.  This way you’ll never be caught short and have to sell depressed assets during periods of loss.  This also means you’ll have enough faith in a strategy to stick to the plan.

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 on financial math that reveals deeper economic truths.

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

The Pifolio analysis begins with a continual research of 46 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

This is a complete and continual study of almost all the developed major and emerging stock markets.

This mathematical 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 course examines and regularly reports on the hows and whys of seven professionally managed portfolios so we can learn how managers find and invest in good value.  The Pifolios are:

  • Keppler Good Value Developed and Emerging Market Pifolios
  • State Street Global Advantage Emerging & Developed Market Pifolios
  • Gold & Silver Dip Pifolio
  • ENR Advisory Extra Pifolio
  • Tradestops.com Trailing Stops Pifiolio

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As you can see in this image (click to enlarge) the top performing Pifolio we are tracking is the State Street Global Advantage Pifolio is up 32.22%.  Here is the breakdown of that current Pifolio.

pifolio

Learn how to invest like a pro from the inside out.

State Street is one of the largest fund managers in the world and their Global Advantage funds invest in good value shares in good value markets.

In the updates we review each portfolio, what has been purchased and sold, why, the ramifications for high risk, medium risk and low risk investors.

As of mid-2017 my personal Pifolio is based on select ETFs in the Keppler Developed and Emerging markets. My Pifolio is invested in Country ETFs that cover seven developed and three emerging markets:

Norway
Australia
Hong Kong
Germany
Japan
Singapore
United Kingdom
Taiwan
South Korea
China

Regardless of economic news, these markets represent good value and have been chosen based on four pillars of valuation.

  • Absolute Valuation
  • Relative Valuation
  • Current versus Historic Valuation
  • Current Relative versus Relative Historic Valuation

When you subscribe to Pi, you immediately receive a 120 page basic training course that teaches the Pi Strategy.   You learn all the Pi strategies, what they are, how to use them and what each can do for you, your lifestyle and investing.

You also begin receiving regular emailed Pifiolio updates and online access to all the Pifolio updates of the last two years.  Each update examines the current activity in a Pifolio, how it is changing, why and how the changes might help your investing or not.

Included in the basic training is an additional 120 page PDF value analysis of 46 stock markets (23 developed markets and 23 emerging stock markets).  This analysis looks at the price to book, price to earnings, average yield and much more.

You also receive two special reports.

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!

I did well then, but always thought, “I should have invested more!”  Now those circumstances have come together and I am investing in them again.

The circumstances that created fortunes 30 years ago were an overvalued US market (compared to global markets) and an overvalued US dollar.  The two conditions are in place again!

30 years ago, the US 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 have 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 in this special offer, you receive the report, “Three Currency Patterns for 50% Profits or More” FREE when you subscribe to Pi.

Plus get the $39.95 report “The Silver Dip 2017” free.

With investors watching global stock markets bounce up and down, many missed two really important profit generating events over the last two years.  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, compared to a ratio of 230 only two years before.

In September 2015, I prepared a special report “Silver Dip 2015” about a silver speculation, leveraged with a British pound loan, that could increase the returns in a safe portfolio by as much as eight times.  The tactics described in that report generated 62.48% profit in just nine months.

I have updated this report and added how to use the Silver Dip Strategy with platinum.   The “Silver Dip 2017” report shares the latest in a series of long term lessons gained through 40 years of speculating and investing in precious metals.  I released the 2015 report, when the gold silver ratio slipped to 80.  The ratio has corrected and that profit has been taken and now a new precious metals dip has emerged.

I have prepared a new special report “Silver Dip 2017” about a leveraged speculation that can increase the returns in a safe portfolio by as much as eight times.

You also learn from the Value Investing Seminar, our premier course, that we have been conducting for over 30 years.  Tens of thousands of delegates have paid up to $999 to attend.  Now you can join the seminar online FREE in this special offer.

This three day course is available in sessions that are 10 to 20 minutes long for easy, convenient learning.   You can listen to each session any time and as often as you desire.

The sooner you hear what I have to say about current markets, the better you’ll be able to cash in on perhaps the best investing opportunity since 1982.

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Tens of thousands have paid up to $999 to attend.

This year I celebrate my 51st anniversary in the investing business and 49th year of writing about global investing.  Our reports and seminars have helped readers have better lives, with less stress yet make fortunes during up and down markets for decades.  This information is invaluable to investors large and small because even small amounts can easily be invested in the good value shares we cover in our seminar.

Stock and currency markets are cyclical.  These cycles create extra profit for value investors who invest when everyone else has the markets wrong.  One special seminar session looks at how to spot value from cycles.  Stocks rise from the cycle of war, productivity and demographics.  Cycles create recurring profits.  Economies and stock markets cycle up and down around every 15 to 20 years as shown in this graph.

stock-Charts

The effect of war cycles on the US Stock Market since 1906.

Bull and bear cycles are based on cycles of human interaction, war, technology and productivity.  Economic downturns can create war.

The chart above shows the war – stock market cycle.  Military struggles (like the Civil War, WWI, WWII and the Cold War: WW III) super charge inventiveness that creates new forms of productivity…the steam engine, the internal combustion engine,  production line processes, jet engines, TV, farming techniques, plastics, telephone, computer and lastly during the Cold War, the internet.  The military technology shifts to domestic use.  A boom is created that leads to excess.  Excess leads to correction. Correction creates an economic downturn and again to war.

Details in the online seminar include:

* How to easily buy global currencies, shares and bonds.

* Trading down and the benefits of investing in real estate in Small Town USA.  We will share why this breakout value is special and why we have been recommending good value real estate in this area since 2009.

* What’s up with gold and silver?  One session looks at my current position on gold and silver and asset protection.  We review the state of the precious metal markets and potential problems ahead for US dollars.  Learn how low interest rates eliminate  opportunity costs of diversification in precious metals and foreign currencies.

* How to improve safety and increase profit with leverage and staying power.  The seminar reveals Warren Buffett’s value investing strategy from research published at Yale University’s website.  This research shows that the stocks Buffet chooses are safe (with low beta and low volatility), cheap (value stocks with low price-to-book ratios), and high quality (stocks of companies that are profitable, stable, growing, and with high payout ratios). His big, extra profits come from leverage and staying power.  At times Buffet’s portfolio, as all value portfolios, has fallen, but he has been willing and able to wait long periods for the value to reveal itself and prices to recover.

keppler asset management chart

This chart based on a 45 year portfolio study shows that holding a diversified good value portfolio (based on a  good value strategy) for 13 month’s time, increases the probability of out performance to 70%.  However those who can hold the portfolio for five years gain a 88% probability of beating the bellwether in the market and after ten years the probability increases to 97.5%.

Time is your friend when you use a good value strategy.  The longer you can hold onto a well balanced good value portfolio, the better the odds of outstanding success.

Learn how much leverage to use.  Leverage is like medicine, the key is dose.  The best ratio is normally 1.6 to 1.  We’ll sum up the strategy; how to leverage cheap, safe, quality stocks and for what period of time based on the times and each individual’s circumstances.

Learn to plan in a way so you never run out of money.  The seminar also has a session on the importance of having and sticking to a plan.  See how success is dependent on conviction, wherewithal, and skill to operate with leverage and significant risk.  Learn a three point strategy based on my 50 years of investing experience combined with wisdom gained from some of the world’s best investment managers and economic mathematical scientists.

The online seminar also reveals  the results of a $80,000 share purchase cost test that found the least expensive way to invest in good value.  The keys to this portfolio are good value, low cost, minimal fuss and bother.  Plus a great savings of time.  Trading is minimal, usually not more than one or two shares are bought or sold in a year.  I wanted to find the very least expensive way to create and hold this portfolio so I performed this test.

I have good news about the cost of the seminar as well.   For almost three decades the seminar fee has been $799 for one or $999 for a couple. Tens of thousands paid this price, but online the seminar is $297.

In this special offer, you can get this online seminar FREE when you subscribe to our Personal investing Course.

Save $468.90 If You Act Now

Subscribe to the first year of The Personal investing Course (Pi).  The annual fee is $299, but to introduce you to this online, course that is based on real time investing, I am knocking $102 off the subscription.  Plus you receive FREE the $29.95 report “Three Currency Patterns for 50% Profits or More”, the $39.95 report “Silver Dip 2017” and our latest $297 online seminar for a total savings of $468.90.

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Triple Guarantee

Enroll in Pi.  Get the basic training, the 46 market value report, access to all the updates of the past two years, the two reports and the Value Investing Seminar right away. 

#1:  I guarantee you’ll learn ideas about investing that are unique and can reduce stress as they help you enhance your profits through slow, worry free, easy diversified investing.

If you are not totally happy, simply let me know.

#2:  I guarantee you can cancel your subscription within 60 days and I’ll refund your subscription fee in full, no questions asked.

#3:  You can keep the two reports and Value Investing Seminar as my thanks for trying.

You have nothing to lose except the fear.   You gain the ultimate form of financial security as you reduce risk and increase profit potential.

Subscribe to Pi now, get the 130 page basic training, the 120 page 46 market value analysis, access to over 100 previous Pifolio updates, the “Silver Dip 2017” and “Three Currency Patterns For 50% Profits or More” reports, and value investment seminar, plus begin receiving regular Pifolio updates throughout the year.

Subscribe to a Pi annual subscription for $197 and receive all the above.

Gary

 

 

 

 

 

The Rose Colored Glass on Canada


 We can gain a lesson about being deceived by the rose colored glass from the U.S. government’s intrusion into Canada.

This is the second post in a series on how to protect ourselves from perceptions created by the rose colored glass.  See the first post  if you missed it… Beating illusions from the rose colored glass.

When investing I look for ideas that will never change… like our need for food, water, clothing.

When it comes to lifestyle I work on the premise that things will always change.  No one can see what will happen in any one country’s future.

Canada for example always leaves me with a warm… wooly feel.  Growing up in Portland, Oregon, Seattle and Vancouver BC were like part of town.  We went in and out as if we were residents there.

The Canadians are the sensible… peaceful nation than the elephant they sleep with and should emulate more.   If it were not for those cold winters!

Yet we’ll see here how things are achangin.

More on government intrusion into Canada in a moment.   First. may I share what a glorious day it is up here in the Blue Ridge Mountains?   The garden is bursting with colors like an English

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country garden… especially the lilies and rose.

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Rose in our garden.

The veggie garden is doing well.  No more lettuce will be required from the store and we have squash, tomatoes and beans getting ready and the…

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first sunflowers are nicely in bloom.

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There is a nice explosion of Day Lilies in front of the house and at the entrance… a very

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colorful array.

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Our Super Thinking + Writer’s camp starts here this evening and I was talking to one of the delegates who arrived early.

He noted how this has all the qualities of a great survival place… isolated… far from any major city, plentiful gravity fed water… abundant availability of food, fuel (wood)  and hydro power.  Many think we moved here for this reason… but it’s the beauty… freshness… the ability for morning barefoot walks in wet grass amidst the gardens… for some running with the hound up to the hot tub getting the wood stove burning… enjoying the smoky feel in the woods and a hot soak.

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Here is our deep woods, spring fed. wood fired heated, cedar Japanese Ofuru soaking tub.

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Every soak is in fresh filled, mineralized, gravity fed sacred waters from an ancient spring that is a historical site.

These wonderful features are why Merri and I are here during the summers and fall.  Any survival features are an added benefit because we should gravitate to what we love… not run from our fears.

Back to Canada……. we can see how government intrusion is encroaching here.

Excerpts from a recent CBS Canada news article entitled “Focus is Great Lakes area in search for drugs, migrants” shows us how changes are taking place along our longest unprotected boarder when it says (bolds are mine): The U.S. Department of Homeland Security launched another unmanned surveillance aircraft over the Canadian border on Monday, this time in the Great Lakes area, to try to stem the flow of drugs, migrants and terrorists into the country, U.S. officials told CBC News.

The first unmanned surveillance began over the Manitoba portion of Canada’s border with the U.S. in February with a $10-million plane based at a military facility in Grand Forks, N.D.

In eastern Canada, the focus of the Predator is the Akwesasne Mohawk Territory, which straddles the St. Lawrence River near Cornwall, Ont., and sprawls across the border of New York state.

“Essentially, we’re supplying high-grade marijuana through this one small rural county of 50,000 people, thanks to the border, to all of the northeast,” said Derek Champagne, district attorney of Franklin County, N.Y., and head of the area’s border and narcotics task force.

However, people on the reserve are uneasy about being watched, Mohawk youth counsellor Brant Davis said.

“We no longer have the life we had 20 years ago here. Cameras, infrared, laser, informants, everything.”

The border with British Columbia may be the next location the Predator visits after the trial wraps up this Thursday.

If the tests are successful, the surveillance will become permanent, Homeland Security says.

I do not like the feeling of this at all.  Even though the reports say the drones stay in US airspace, this activity seems too much like spying on our Canadian neighbors.   Plus history suggests that each time technology like this is implemented the use grows.

Evidently Ron Paul does not like this either. two days ago he posted a message entitled “Unconstitutional Use of Drones Must Stop”.

Here is an excerpt.  Again bolds are mine:  Last week I joined several of my colleagues in sending a letter to President Obama requesting clarification of his criteria for the lethal use of drones overseas. Administration officials assure us that a “high degree of confidence” is required that the person targeted by a drone is a terrorist. However, press reports have suggested that mere “patterns of behavior” and other vague criteria are actually being used to decide who to target in a drone strike. I am concerned that an already troublingly low threshold for execution on foreign soil may be even lower than we imagined.

The use of drones overseas may have become so convenient, operated as they are from a great distance, that far more “collateral damage” has become acceptable. Collateral damage is a polite way of saying “killing innocent civilians.” Is the ease of drone use a slippery slope to disregard for justice, and if so what might that mean for us as they become more widely used on American soil against American citizens?

This dramatic increase in the use of drones and the lowered threshold for their use to kill foreigners has tremendous implications for our national security. At home, some claim the use of drones reduces risk to American service members. But this can be true only in the most shortsighted sense. Internationally the expanded use of drones is wildly unpopular and in fact creates more enemies than it eliminates.

I agree with Paul and the Mohawks.  People do not like to be watched.  Watching is a predatory action.  The Canadians are such good friends.  This is a great nation. Let’s not do something like this that could offend them.

However these views are not the point of this message.  The point is that we cannot foresee change and that such security technology is alluring and attractive to ALL governments because it appears that at least some Canadians want drones too!

Excerpts from a February 2012 article “Why Canada Needs Drones” by  Ontario Senator Colin Kenny says:   A front-page article in the National Post last week reported that the Canadian government is considering purchasing some drones – perhaps half a dozen – as it begins to publicly perspire over its commitment to purchase sixty-five F-35 fighter jets.

Drones, or Unmanned Aerial Vehicles (UAVs), are aerial robots used for surveillance or attack. Canadian troops used them for surveillance on the battlefield in Afghanistan; the Americans are turning to them as a cost-effective component of maintaining military supremacy.

If the government is serious about purchasing UAVs, I tip my cap. When I served as Chair of the Senate Committee on National Security and Defense, we recommended their use to defend Canada’s coastlines. Drones are also incredibly useful in saving lives on the battlefield.

Here is more, an Amtech blog article of June 2, 2012 entitled “Canadian Government hopes drones will cool off Arctic dispute” says   This week’s article focuses on the Canadian Government’s (i.e. Ottawa’s) purchase of specialized airplanes for Arctic surveillance. Although Canada is generally considered the “owner” of the Northern most part of our planet, other countries, namely Russia, have also claimed sovereignty (i.e. ownership) on this area. So, how will planes help Canada keep “the true North strong and free”?

Well, recent developments in the aviation industry are changing powered flight as we know it, and this is especially true of military aircraft.  That technology is the autonomous aircraft, a plane that flies either by remote control or pre-programmed commands. While unmanned drones have made headlines as the technology that helped track Osama Bin Laden, these remote flyers have also been used for non-military purposes: spraying pesticides, extinguishing forest fires, researching hurricanes, and searching for valuable natural resources. The Royal Canadian Air Force see this technology as perfectly suited to the remote, unwelcoming Arctic.

Here is the point that is important for us to consider.  Change is continual and it will become increasingly difficult for us to run away from being watched.   Wherever we go governments might employ drone and other anti privacy technology Even more newer technology may come that alters our life even more.

We’ll see in this series how privacy in Mexico is changing… Ecuador and even more so the country that invented common rights, England.

We can look back on the good old days when we were not watched all the time by big brother.  Follow the lead that life sends you.  Be attracted to what you love and do not let your fears dominate where you go… how you live… what you do.   If you move to escape the drones, you may well find they are still above… watching you.

This series will share more on how we can still use the Six Point Command Posture… but let’s emphasize that finding and fulfilling our purpose in life… not escaping change is the route to everlasting wealth and the best natural health.

Gary

We cannot control others. We cannot see the future. We can make ourselves more effective and adaptable to change.  This is why we have shifted the emphasis of our courses to inner improvement so we are best able to adapt to whatever change comes our way with Super Thinking.

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The Learn Spanish in three day course is now available online.

Read below to see why we are offering our Super Spanish course online for the first time.

Speaking Spanish is a huge benefit on its own.  You can become one of the rare North Americans who can get along in Spanish speaking countries.  You can be one of the special people who can communicate with 10 million non-English speakers in the USA.  Spanish is the second most used language in the USA.  There are more Spanish speakers than speakers of Chinese, French, German, Italian, Hawaiian, and the Native American languages combined.  According to the Census Bureau, Spanish is the primary language of nearly 50 million people in the US.  This is the largest Spanish-speaking community outside of Mexico. Only half of these speakers also speak English “very well,” and 19% do not speak Spanish at all.

You can tap into all this potential when you speak Spanish.  Yet there are more benefits.

An article in England’s leading newspaper, the Telegraph, entitled “Why learn a foreign language? Benefits of bilingualism” (1) sum up the biggest benefit of learning a second language and increased intelligence.  The article says: “Learning a foreign language is more than just a boost to your CV or handy for traveling.  It will make you smarter, more decisive and even better at English.  Physiological studies have found that speaking two or more languages is a great asset to the cognitive process.  The brains of bilingual people operate differently than single language speakers, and these differences offer several mental benefits.”

The article then explains studies that show seven cognitive advantages gained from learning a foreign language.

#1:  You become smarter
#2:  You build multitasking skills
#3:  You stave off Alzheimer’s and dementia
#4:  Your memory improves
#5:  You become more perceptive
#6:  Your decision-making skills improve
#7:  You improve your English

Does it sound impossible to learn Spanish in three days?  Yes, it is impossible when you try to learn Spanish in the old, traditional way.

Though you may choose to take more time using this course to learn Spanish, thousands of our readers have learned at our Spanish courses.

There is a scientific method of learning… proven and described in numerous best selling books that create educational jumps by making education natural, easy and fun.   This course works because it is education without stress!

This method was created and refined by the Bulgarian educational master, Georgi Lozanov, who transformed the entire Soviet educational system to such a degree that this third world country beat the USA into space.

Merri was lucky to be one of a handful of students outside of Bulgaria who were allowed to be taught this system in the early 70s.  She practiced this unique and remarkable form of education for  four decades. It was a delight!

Merri and I began integrating these techniques with other shamanic and educational tactics we had gained in our global travels and then applied them to teach Spanish in three days.

The course has been proven again and again by the thousands who have used this system.  You can read a few of the many raves we have received from delegates who have learned from the Super Thinking Spanish course we created.

Here are a few quotes from delegates of the course.

One delegate from St. Louis wrote:  Hi Gary,  Just ended forty-five years in dentistry last week, and I’m on to a new career.  What is my new career?  Still formulating, but the eye -opening,mind expanding Super-Spanish course last weekend in St. Louis surely shows me the opportunity exists to expand my horizons.

Besides having a lot of nice people to learn our new language; the methods Merri and you developed proved to be just what you said they would be.  We all and I in particular relaxed our way to new learning.  I feel so very comfortable with the basis of my new language skills that I know I will be spitting out great Spanish sentences by the time I reach Ecuador in October.  Last year I spent six weeks in Ecuador and now I plan on conversing with the people.

Today’s excerpt of your newsletter really hit home. You do what you say you will. There are no surprises or hidden sales tricks. The only tricks are beneficial to our learning.  Thank you for a wonderful experience that I was quite unable to grasp how you would pull it off.  You did, however, and I look forward to other courses that you offer, and I have absolutely no doubt they also will work beneficially.  Best regards, Denis Molloy.

Another wrote about the Super Spanish course:   Buenos Dias, here is a testimonial for Super Thinking-Super Spanish.  Please feel free to use all or part in promotions for the course.  In addition, you may give my email address to any prospect “on the fence” about enrolling.  Yesterday, in Cotacachi, Ecuador, I finished Super Spanish.  I had high expectations for the course and they were exceeded.

After three days, I can speak Spanish in complete sentences. In simple conversations, such as buying groceries or ordering a meal, I can make myself understood. I think that’s incredible!

Although I am far from the competence level of a native speaker, I feel I’ve taken a giant step forward in learning Spanish so that I can experience the people and culture of Ecuador.  The foregoing benefits would have more than justified the time and money I invested in Super Spanish.  And learning some Spanish was not the most important benefit I got from the course.

Prior to leaving the USA, I had felt for some time that the pace of life there was unhealthy for me (and for most people) and I did nothing about it.

I’ve thought about the pace issue during the course.  One of the key elements Merri Scott designed into Super Spanish is placing the student in the optimal state for learning.  In class, the past three days, I’ve been re-introduced to guided journeys and introduced to the calming effects of Baroque music (www.sundaybaroque.org).  What a blessing! I’m inclined to make one or both a daily part of my life.   Rob Christi.  Cotacachi, Ecuador

Another attendee from a course wrote:   “I took this incredible class a few weeks ago, and I would like to tell anyone that is interested, that it is an amazing three days of learning with lots of laughs included. You leave everyday wanting to learn more and are so excited to do so.

“Other Spanish classes and tutoring made us feel like it would take forever to get to the point where we could put it into practice, but this method gave us a more fluent use for everyday life almost immediately AND the confidence to use it.  It is a fantastic way to show people how much they know and give confidence to learn and use Spanish creating a momentum.

“They made learning Spanish easy and fun in a very relaxed, comfortable atmosphere.  I would definitely recommend this course.  Even if you know some Spanish, this helps make it easier because of the less stress that no verb conjugations gives you.  This gives you more confidence in yourself to try and speak it more.

 “The stress free atmosphere and tons of interaction and participation were very conducive to learning.  The relaxation techniques alone are worth the price.  The fact that I can now feel more comfortable conversing in Spanish with my new friends and neighbors is priceless.  Muchas, muchas gracias.”

“I loved the relaxed environment.  I picked up quite a lot of new vocabulary.  I found this course very informative about how the language works, how I can make sentences and understand others better!  Muchas Gracias!  I had a call from Telcel (the local phone company) after our second class and I was able to speak and understand them for the first time. Despacio (meaning slowly) … a great word!  Everyone should take this course before they pick up bad habits.”

“I liked how simply the course was organized and the positive attitude about learning.  Thank you so much for helping me to learn Spanish!”

“I liked the laid back yet professional approach.  I highly recommend this new, relaxing method of learning Spanish,  I feel a lot more confident in the delivery of my words and sentences. It was taught in an excellent and very professional way.

“It was a very enjoyable class.”

How The Course Works

The first tactic is to use Baroque music in the learning process.  At least three best selling books, “Superlearning”, the “Mozart Effect” and “Superlearning 2000” have revealed insights about how to learn and think more powerfully based on systems drawn from the Bulgarian educational master, Dr. Georgi Lozanov.  Merri Scott was among just a few who learned directly from Lozanov.

The second tactic uses 17 unique lessons to provide Spanish fluency in a short time.   Let me prove to you how this tactic works by teaching you hundreds of Spanish words in less than 30 seconds.

Here is the proof.

“Most words in English that end in ION are almost identical, just pronounced differently.  For example action is accion, education-educacion, manipulation- manipulacion, etc.”

There you have it.  How long did it take you to read the sentence?  You now know hundreds of Spanish words that you will never forget.

See examples of the words you already know below.

How long would have taken you to memorize all those words?  How soon would you have forgotten them?

This is just one of seventeen Spanish lessons in the course.

The next lesson teaches how to pronounce each of the nouns.

Then, the third lesson teaches almost as many verbs, almost as quickly.

The fourth lesson shows how to avoid conjugating verbs by sticking with the infinitive (far easier than it sounds).  This simple lesson leaves a person sounding like a Spanish professor without ever conjugating a verb.

Lesson five shows how to sound infinitely polite and yet get almost anything desired in Spanish.

Lesson six gives valuable connectors and the seventh lesson triples the Spanish capacity with three words for “yesterday,” “now” and “tomorrow”.

By the end of three days you feel comfortable speaking Spanish.

Plus the system is Impro-Dynamic.  This means your Spanish keeps getting better even though you do not seem to be studying… practicing… or speaking Spanish.

I was amazed by this as I traveled back and forth from the USA to Ecuador.  The longer I was away from Ecuador… the better my Spanish became.  My second language was automatically improving The self improving feature comes because you learn to create Spanish sentences rather than remember them.  The portion of the brain that creates is more powerful than the portion that recalls.  When your mind creates something… it owns it!  You do not have to remember .

During the course you learn 4005 Spanish words that you already know .  

You then learn how to create Spanish sentences from these words.

Throughout the course you learn how to pronounce the sentences you create.

When the course ends… the mind keeps working… and creating… so next time you begin to speak Spanish you’ll be surprised .  You improve even though you have not actively worked on your lingual skill.

Due to the difficulty of getting groups together to learn this valuable technique, we are testing an online beta program for subscribers to use the Super Spanish course at home.   This is a beta test and is available only this week, June 5 to 11, at the highly reduced price of $79.

I’ll be in touch personally via email with each person who signs up for this course to see how it works or what is required to make it better.  Once this test is complete, we plan to offer the program on a larger scale and at a much higher price.

The course has our, full satisfaction or money back, guarantee.  Try Super Spanish for 60 days.  If not fully satisfied, simply let us know for a full refund.

Learn Spanish online $79

Here are more testimonials from previous Super Spanish Courses.

Maggie wrote: It didn’t really seem possible that we would be speaking and understanding Spanish in only 3 days but the course made it happen in a very supportive learning environment.  I would highly recommend this course for anyone wishing to learn “practical Spanish”.  The teaching methods, use of relaxation, the use of native Spanish speakers for pronunciation and the teachers themselves who were approachable and helpful and always positive made this a very valuable class.

This course improved my self confidence in my ability to learn and retain a language.  It was presented with genuine enthusiasm, great energy and the style of learning is very effective. Gracias!  It was a great experience.

Nadine wrote: “Just spent the last 3 days in the most wonderful learning environment learning Spanish.  What an amazing learning experience!!  First day out of class and I could not stop thinking in Spanish WOW!!  I am amazed by how much I learned, retained and how much more is showing up now that I am out of class.  And the best part is THERE WAS NO STUDYING!! Indeed this is Super Thinking!!!  I would highly recommend this to anyone that has ever had a desire to learn another language or learn anything in record time.

And a few days after that ….  As I went through my day, just hanging out with my son, I could see myself starting to think in Spanish.  At first I thought it was amusing but as it continued and increased I thought “My goodness this is really remarkable amazing” It was really an effortless unfolding.  I wasn’t at any point “trying” to think in Spanish, just words I knew would fly across the screen in my mind.  And then this afternoon, my son cuddled up on the couch to watch some cartoons on his ipad and was watching Peppa Pig in Spanish…hmm coincidence?  I think not, I’m radiating Spanish so much that my son is being influenced!  Thanks a million again.  This weekend the best learning experience of my life!!

If you have ever had a desire to learn Spanish this is the way to do it!  By the end of the first day I had more confidence and more practical ability than I had from any previous courses I had taken.  It was fun and relaxed and full of laughter.  You will leave this class excited to use what you have learned.  Rather than leaving overwhelmed with how much you have yet to learn and master, you are equipped with the knowledge and know how to go out and communicate as well as the excitement to do it!”

Gary noted:  “The whole approach is positive and conducive to learning at a level that benefits ALL participants.  It is not intimidating and does not set up a pass/fail atmosphere.  The presenters are terrific and the results unbelievable.  It was relaxed, informal, friendly and effective.”

Twila said:  “This class provided a very refreshing and relaxed way of learning.  The atmosphere felt very safe to say the words you were practicing.  I learned a lot in a way that will make it easy to apply.  Starting with conversation is way more fun.  How quickly you can learn!  It was a great group, great instructors and great stories.

The atmosphere in the classroom was so relaxed that learning Spanish felt like a breeze and not like a painful task.  The relaxation exercises are really conducive to language learning.  We learned A LOT in a short time and it was fun and the environment was non-threatening.”

Brigitte sent this:  “Buenos Dias, Suzanne. su clase de espanol es excelente! Muchas Gracias!  
I have already done what you suggested and went into the program listening to the music and going over the lessons.  I know: Repetition……reinforcement…..thinking in the new language….it’s all part of it.  I loved your course and will certainly recommend it to friends.  Who knows….I might feel the urge and have the opportunity to repeat it at your beautiful place in Puerto Aventuras…..Quien sabe? Hasta otro dia y saludos a su familia.”

Marie wrote:  “I would highly recommend this course.  The amount covered in 3 days is amazing!  All with no stress.  The correlation lessons and pronunciation practice has greatly reduced my anxiety to go out and use my Spanish.  I really enjoyed the whole process and thank you for the take away tools.”

Learn Spanish online $79

Gary

Here is the English translation of a few of the many Spanish words you now know and will never forget.  How long would it have taken you to memorize them?  How soon would you forget?

“Most words in English that end in ION are almost identical, just pronounced differently.  For example, action is accion, education-educacion, manipulation- manipulacion, etc.”

Some more of these words:  Combination, Attrition, Education, Vacation, Petition, Lotion, Motion, Construction, Abduction, Pronunciation, Concentration and a ton of others!

Learn Spanish online $79

(1) www.telegraph.co.uk Benefits-of-bilingualism.html

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Living on the Leading Edge


Living on the leading edge can be fun… interesting and lucrative as well.

super spanish course images

Walking here, along the edge of our North Carolina farm, can be beautiful but it’s easy to get lost in the wilderness too.

In our current era there are so many leading edges that it is hard to keep up!  Also many leading edges are sharp!

Merri and I know as it seems we are always stumbling (or being led-depending on how you wish to look at life) into something new and somewhat unknown.

!When Merri and I began our seminar business, our courses were about international investing.  In the 1970s and 1980s almost no one else was talking about this arena.  Wow!  Some people really hated us for that.  They thought it was crazy… this idea of investing globally and totally unpatriotic.  I had to learn how to deal with hecklers in this era.

Finally by the 1990s the investment establishment was catching on about the time our global investing research  led us to Ecuador.   Oh dear, when we had moved on to seminars about investing in Ecuador and then tours about Ecuador real estate how some of our readers did howl!  They felt we had gone crazy… again.

Our Ecuador business helped us see the need  for a better, easier way to learn Spanish and our Super Thinking + Spanish courses began.  Once again many wondered if we had been eating too many fruit loops when we declared that people can learn to speak Spanish in three days.   They wondered if we were crazy until we decided to teach others to teach learning Spanish in three days.  Then they knew we were crazy… or so they thought.

Yet look at these results from the leading edge.

One delegate who attended a recent Super Thinking + Spanish course taught by our Super Teachers, Shawn and Suzanne Bandick, in Mexico wrote:

super spanish course images

We would like to share three quotes below that can help you learn a key factor that brings true success when living on the leading edge.

The first was by Bob Dylan in last week’s message about how to gain from cultural differences.

What’s money? A man is a success if he gets up in the morning and gets to bed at night and in between does what he wants to do.

A hero is someone who understands the responsibility that comes with his freedom.


The second quote is from the Abraham Hicks’ website:  You’re not going to have a lot of people you can talk to about this. There is never a crowd on the leading edge. 

The third quote is a poem from the great poet, Rumi, (bolds are mine): These spiritual window-shoppers,  who idly ask, How much is that? Oh, I’m just looking.  They handle a hundred items and put them down, shadows with no capital.

What is spent is love and two eyes wet with weeping, But these walk into a shop, and their whole lives pass suddenly in that moment, in that shop.

Where did you go? “Nowhere.” What did you have to eat? “Nothing much?”  Even if you don’t know what you want, Buy something, to be part of the exchanging flow.

Start a large, foolish project, like Noah.  It makes absolutely no difference what people think of you.

The key to successfully living on the leading edge is make sure it is YOUR leading edge.  Be true to yourself because when you are… you gain the enormous added energy of conviction of purpose.

With conviction you’ll find that you’ll care what people say when you see that you are fulfilling your purpose.

This is why Merri and I are pleased to see about these Super Teachers and the Super Thinking + Spanish courses they are providing.

Here are a few quotes that do matter to us… from delegates of courses conducted by our Super Teachers.

One delegate from St. Louis wrote about his courses with Mark Frakes:

Hi Gary,  Just ended forty-five years in dentistry last week,and I’m on to a new career.What is my new career? Still formulating,but the eye -opening,mind expanding Super-Spanish course last weekend in St. Louis surely shows me the opportunity exists to expand my horizons. Mark was a very capable leader and teacher,and his choice of Daniella as a pronunciation coach was well received.

Besides having a lot of nice people to learn our new language;the methods Merri and you developed proved to be just what you said they would be.We all,and I in particular relaxed our way to new learning.I feel so very comfortable with the basis of my new language skills that I know I will be spitting out great Spanish sentences by the time I reach Ecuador in October.Last year I spent six weeks in Ecu and now I plan on conversing with the people.

Today’s excerpt of your newsletter really hit home.You do what you say you will.There are no surprises or hidden sales tricks.The only tricks are beneficial to our learning.Thank you for a wonderful experience that I was quite unable to grasp how you would pull it off.You did,and I look forward to other courses that you offer,and I have absolutely no doubt they also will work beneficially.Thanks to Mark,who you chose well to represent your program.

Best regards,Denis Molloy.  Actually I now answer to my course acquired name of Antonio.For that I am also grateful. Love, Antonio.

Another wrote about Glenn Sterling’s course:   Buenos Dias, Gary y Glenn,

Below is a testimonial for Super Thinking Super Spanish. Please feel free to use all or part in promotions for the course. In addition, you may give my email address to any prospect “on the fence” about enrolling.  Yesterday, in Cotacachi, Ecuador, I finished Super Spanish Super Learning.  I had high expectations for the course and they were exceeded.

The course was taught in English by Dr. Glenn Sterling, a witty, engaging, retired chiropractor, and Alberto, his Ecuadorian side kick, who made sure we learned to pronounce everything correctly.  After three days, I can speak Spanish in complete sentences. In simple conversations, such as buying groceries or ordering a meal, I can make myself understood. I think that’s incredible!

Although I am far from the competence level of a native speaker, I feel I’ve taken a giant step forward in learning Spanish so that I can experience the people and culture of Ecuador.  The foregoing benefits would have more than justified the time and money I invested in Super Thinking Super Spanish. And learning some Spanish was not the most important benefit I got from the course.

Prior to leaving the USA, I had felt for some time that the pace of life there was unhealthy for me (and for most people) and I did nothing about it.

I’ve thought about the pace issue during the course.  One of the key elements Merri Scott designed into Super Learning is placing the student in the optimal state for learning.

During the course of the day and night, humans experience four types of brain waves: alpha, beta, delta, and theta. It turns out we learn best in alpha state. Research has shown that alpha state can be induced by meditation, listening to Baroque music (or any music that has about 60 beats per minute) and by taking a theanine (the active ingredient in green tea) supplement.

Getting into alpha involves slowing down and relaxing. So, class includes baroque music and guided journeys to support relaxation. Imagine learning while relaxing and having fun. That’s not how I remember school!

The brutal truth: In recent years, I’ve rarely relaxed (No wonder I have high blood pressure!) and, suddenly, I’m aware of it. Why?

1. Since early April, I’ve been living in a small town in a country with a slower pace of life and I’ve been affected by it. Positively, I’d say.

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

Another attendee from Mexico wrote:   “I took this incredible class a few weeks ago, and I would like to tell anyone that is interested, that it is an amazing three days of learning with lots of laughs included. You leave everyday wanting to learn more and are so excited to do so.”

“Other Spanish classes and tutoring made us feel like it would take forever to get to the point where we could put it into practice, but this method gave us a more fluent use for everyday life almost immediately AND the confidence to use it. It is a fantastic way to show people how much they know and give confidence to learn and use Spanish creating a momentum.”

“I liked how simple it made speaking Spanish. Shawn and Suzanne are amazing teachers. They made learning Spanish easy and fun in a very relaxed, comfortable atmosphere. I would definitely recommend this course. Even if you know some Spanish, this helps make it easier because of the less stress that no verb conjugations gives you. This gives you more confidence in yourself to try and speak it more.”

 “The stress free atmosphere and tons of interaction and participation were very conducive to learning. The relaxation techniques alone are worth the price. The fact that I can now feel more comfortable conversing in Spanish with my new friends and neighbors is priceless. To Shawn and Suzanne, thank you so much. You are gracious hosts and wonderful teachers. I learned so much. Muchas, muchas gracias.”

“I loved the relaxed environment. I picked up quite a lot of new vocabulary. Being new to Mexico, I found this course very informative about how the language works, how I can make sentences and understand others better! Muchas Gracias!”

“I had a call from Telcel (the local phone company) after our second class and I was able to speak and understand them for the first time. Despacio (meaning slowly) … a great word! Everyone should take this course before they pick up bad habits.”

“I liked how simply the course was organized and the positive attitude about learning. Thank you so much for helping me to learn Spanish!”

“I learned a lot of new vocabulary and the class gave me an opportunity to practice my Spanish, especially the pronunciation – thank you Guillermo. I would recommend this class because Shawn and Suzanne you are great teachers, the original way of teaching the language, and the pronunciation practice.”

“I liked the laid back yet professional approach. I highly recommend this new, relaxing method of learning Spanish, I feel a lot more confident in the delivery of my words and sentences. It was taught in an excellent and very professional way.

It was a very enjoyable class.”

“Thank you Shawn, Suzanne and Memo. It was a great learning environment. I liked that it was not strict and regimented.”

“Marv and I both absolutely loved the classes.“

Spiro Michas taught in Montevideo.

super spanish course images

After Day 1, one delegate (self-described as ” no previous ability to communicate in Spanish at all”) was able to fully express himself with the hotel staff in Spanish; as well as the taxi driver and bakery in Spanish – all in the morning before arriving for class on Day 2!

On Day 3, another delegate reported having had a full conversation the night before with his Uruguayan girlfriend completely in Spanish.  Thoroughly impressed, the ecstatic young lady told him “Whatever you’re doing in this class for the past two days, it’s working.  Don’t stop!”

After Day 3, Spiro received this note from one of the delegates:  I think the class gave me confidence to go out and try to make things happen on my own with bad Spanish. Since class I went to the Direccion Nacional de Migracion to renew my cedula (greencard) on my own, and also went to a doctor who interviewed me and prescribed care for my needs all in Spanish. It wasn’t smooth, pretty, or comfortable – but thanks to a better confidence to try – as a result of the class (and the patience and kindness of the people of Uruguay) both missions were accomplished in Spanish.”

The average written evaluation ratings collected after completion of the Montevideo class:

1.3             On a scale of 1-4 (with 4 being highest) when asked to rate level of Spanish prior to course
3.7            On a scale of 1-4 (with 4 being highest) when asked if they would recommend this course

Evaluation Comments included:

“Can now communicate on a basic level”
“Course has encouraged me to start using Spanish more”

“Good presentation, instructor communicates well, was easy to understand, created a good class atmosphere”

After the Vancouver course taught by Ernest Neumann we received an amazing email.  One of the registrants had a medical matter that posed difficulty with concentration, attention and focus.  They had a doctor’s prescription (legal in Canada) for medicinal marijuana.  Following they emailed us and said that taking the first joint of the medicinal marijuana the delegate realized it was no longer necessary and made the decision that he no longer needed this and due to the complete life changing alteration he had experienced was a result of the class!

Rick Brown who taught in Toronto wrote this:  Well, we’re done for the first day. It seems to have gone well. I have arranged a tour of the adjacent Military museum for tomorrow immediately following class. People are having a good time and I’m amazed at the Spanish coming out of them already!!

Here is one more rave from a Mexico course.
super spanish course images

You can get more details on any of these Spanish courses below by clicking on the links.

June 15-16-17 Sarasota, Florida  Super Thinking  + Spanish (Teacher: Mark Frakes)

June 29-30-July 1  Washington DC  Area  Super Thinking + Spanish (Teacher: Karen Zhussanbay)

July 6-7-8 Sarasota, Florida   Super Thinking + Spanish (Teacher: Mark Frakes)

July 27-28-29 Vernon B.C. Canada  Super Thinking + Spanish (Teachers: Shawn & Suzanne Bandick)

August 10-11-12  Madrid, Spain  Super Thinking + Spanish (Teacher: Spiro Michas)

August 15 – 16 – 17  Panama City, Panama  (Teacher Robert Girga). See details here.

August 20-21-22 Marbella, Spain   Super Thinking  + Spanish (Teacher Spiro Michas)

October 24 – 25 – 26 Panama City, Panama  (Teacher: Robert Girga).

Nov. 2-3-4   Mt. Dora Florida   Super Thinking + Spanish  (Gary & Merri Scott)

Dec. 3 -4-5  Panama City, Panama  (Teacher: Robert Girga).

To gain the ability to communicate in Spanish in just three days is definitely on the leading edge. We invite you to join us or any of  the Super Spanish teachers!

Gary

International Investing Light


There may be international investing light at the end of the tunnel… soon… but we must take care for now.

See below how this can create income in Ecuador.  Hand dyed, all natural yarn ready for beautiful sweaters.

Ecuador-tours

We must take care because before we really see the international economic light, I expect one more downturn this autumn… one that will break the economic backs of many who have been just barely hanging on.

Markets and economies rise and fall in spurts and provide large influxes of  profit that create really bad fiscal and lifestyle habits that are destructive when dangerous economic ex-spurts (recessions) come long. See more about this here

The first dangerous time is when markets rise so much for so long that the general population becomes convinced that “the good life’ will last forever.   Then the second dangerous times comes in the form of a market crash.

The crash destroys many lives and finances.  Then after a year or so the markets rally on news of an economic recovery.  There is a fairly decent broad pickup, led by the consumers, government stimulation,  tax cuts and low interest-rates.   This is a knee-jerk stock market reaction, at the first sign of a healthy economy.  The stock market kicks up 10% at minimum, 30% at best. These rallies are not based on reality though. They are usually short lived.

This short term bear rally spurt is followed by another severe ex-spurt (bear market) which we should expect now.

Here are some tips to help survive such dangerous times:

First recognize that tight economies are best for making money. For example Marc Andreessen co founder of Netscape started Loudcloud, an Internet infrastructure company in a terrible recession  because there was less competition, easier access to good labor. Both businesses and employees are more realistic in tough times.

Tough times can be good because they force us to do what we should already have been doing. Human nature being what it is, we get fat when the times turn easy and seem good. Here are a few tips we should always heed, but sometimes can survive ignoring when economies boom. If we ignore them now, it is at our peril.

#1: Look for every way you can to trim expenses.

#2: Do not be inflexible or proud. Not long ago a seminar delegate told me about a friend who had risen from a zero net worth to having an Internet portfolio worth $300 million. “Then,” the delegate said, “he lost it all when the bubble burst. He went right back to where he started.” That was not quite right. That investor did not go back to where he started. He most likely acquired bad habits when he thought he was worth $300 million! Unless he shed these habits when he went broke they will make it harder for him to succeed again! In good times, we may think we deserve a certain way of life or that some things are inalienable rights. Really our only economic right it to spend a little less (maybe 90%) than we earn.

#3: Always save. No matter how tough the times, always try to save at least 10% of your income. Those who do this almost never run into economic trouble.

#4: Look harder for the silver lining. There are more in bad times than good. An old British saying is “where there is muck there is brass.”  Business is solving problems and difficult times create problems. Look for ways that you (or your investments) can help others squeeze through tight times.

#5: Be positive. One of the greatest risks in recession is a can’t win attitude. If the economy falls drastically (say 30%), you still only have to be in the top 70% to get by. The entire history of modern humanity has been one of long term growth chopped by short term recessions. Current conditions are nothing new.

#6: Remain true to your economic plan. Use three phase investing as described many times in our messages. Do not panic and stick by your investments (assuming they were made intelligently to begin). This will increase your odds of success and help you with step seven.

#7: Maintain perspective.  A USA Today article “American Workers Rethink Priorities” pointed out that many workers are taking time to rethink their grueling schedules or about pursuing work that might pay less but is more meaningful. We live in the richest, most incredible era that mankind has ever known. Our poorest have more than the richest of just centuries ago. Yet this can be hard to remember when caught in the day-to-day rush of the material rat race. Inspired investing is doing what we love and figuring out how to make money from it. We increase our odds of success and enjoy what we are doing more. When times are tough and the economy slows, this perspective can give us time to sit back for at least a few moments and ask, “What do I really want to do with the rest of my life?”

The answer is the most important asset you will ever receive.

Until next message, good global business and investing!

Gary

The greatest asset of all is the ability to earn wherever you live, which brings everlasting wealth.

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

This is why I am giving everyone who enrolls in our North Carolina or November Ecuador International Business & Investing seminar our “Tangled Web… How to Have an Internet Business Course” (offered at $299) free.

Here are comments from a reader about the way we help:  Thank you for your inspiration and information outlining foreign banking and retirement.  Your comments and suggestions are welcome for planning the steps to evaluate the early stages of living abroad.

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

Oct. 9-11 IBEZ North Carolina with our webmaster  David Cross & Thomas Fischer of JGAM

October 16-18 Ecuador Southern coastal tour Only One Place Left

Oct. 21-24 Ecuador Import Export Tour

Oct. 25-26 Imbabura Real Estate Tour

On the Ecuador Import Export Tour we visit Winter House, a boutique wool factory.

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They make wonderful organic cotton and wool prodcuts with all natural dyes.

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Their sweaters are very colorful and they’ll sell just one  but also ship entire loads to retialers in the US and Canada.  You can create basics or have them put together your own design.

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

Ecuador Investing & Business Idea


Here is an Ecuador investing and  business ideas for Ecuador or anywhere you live.

In a moment, I am going to show you how to own this 16 room hotel in Otavalo for almost nothing… maybe even free.

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First let’s look at a business idea for this hotel… rootlessness… a growing global problem.

Problems create opportunity so there is business opportunity in rootlessness.

Technology has given mankind the ability to work, live and invest globally… a wonderful benefit.   Yet this mobility has created a problem as well.

One of my messages many years ago (2002) outlined that there would be a growing market for friendship in this modern era.

That message said: The market for friendship has to grow because technology has made society so  mobile. I for example have lost nearly every single really good friend from school.  I haven’t seen most of the friends I grew up with for forty five years. I imagine they still live in Portland, Oregon, but maybe not. They might all have become travelers like myself. Out of a six pack of school buddies, Steve is the only one with whom I keep in touch.

When I moved to North Carolina, I visited the local car mechanic named Jay Dee to have some work done on my 1986 Suzuki Samari Jeep. This is the perfect farm car but often needs work.  Jay Dee’s garage is a barn by his house and local people sort of collect around that barn to shoot the breeze, spit a little tobacco and talk over old times. “Remember old Johnny Blevins and that time he threw you in the creek,” one of them might say. “Well darn that must a been fifty years ago.”

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My Samari… 23 years old and only 62,000 original miles.

I love being with these wonderful mountain people and their easy going, friendly ways. They have such deep roots and ties and are comfortable and at ease with their friends. They know who they are, where they are and who their friends are because they have been with them their entire lives. These people aren’t hanging around Jay Dee just to get their cars fixed. They are enjoying a ritual of friendship that has united them since they were kids.

I love this! My friendships are scattered and far flung all over the world. I sometimes don’t get to see my friends for years!

A huge segment (much of the wealthiest) of the population no longer lives where they were brought up. They have lost touch with their roots.  The more technology removes us from our origins, the more the market for togetherness and friendship grows.

Friendship is an extension of togetherness and can develop around many themes. For the mountain folk of North Carolina or anyone who remains rooted in their birthplace the theme is mostly “down home”.

These friendships are tight and if you have ever heard the phrase “You ain’t from around here are ya, boy,” you have experienced the reverse side of this type of friendship. The implication is that with these long term, locally based friendships, the only way to be a friend is to have been there for years.

Some of the years I lived in Gloucestershire, England were spent in a tiny village named Chalford. I lived over  a local pub there, “The Mechanics Arms.” Though I was a newcomer to the area I was accepted as an old timer because of family ties. One man in his sixties, who visited the pub every night however wasn’t quite part of the crowd.

Many of the locals talked about him as the new man in town. I was surprised later to learn he had lived in Chalford for nearly thirty years!  The locals would always view him as less trustworthy because he had not been born and raised there. Childhood experiences were the basis of their deepest friendships.

Many of us will never have this type of long term familiarity friendship.We have moved around too much. This creates markets for many types of new friendships.

Networking is a form of business friendship. The theme of the friendship is scratch my back and perhaps I can scratch yours or we will both be better off scratching each others’ backs. Such friendships can be local, state or country wide or as mine span the globe. They can be very informal or very formal.

The market for formal friendships has already exploded.  Incredible growth of support groups such as AA are a sign of the momentum in the friendship market. Such groups offer a format for formal friendships and range from disease support groups to abused support groups. Each offers an organized way to have friends. The growth of these groups is not because there are more problems than thirty years ago. The growth is because of the increasing market for friendships.

We can see this trend spreading everywhere. For example one telephone company has recognized this growing trend and has successfully built its business around the idea of calling “family and friends.

This thought (that a market for friendships would grow) was correct.  We see this on the internet with one of the biggest trends being social networking sites.

A recent New York Times article, “Invisible Immigrants, Old and Left With ‘Nobody to Talk To” by Patricia Leigh Brown reveals a sliver of this problem.

Here is an excerpt from this article:   They gather five days a week at a mall called the Hub, sitting on concrete planters and sipping thermoses of chai. These elderly immigrants from India are members of an all-male group called The 100 Years Living Club. They talk about crime in nearby Oakland, the cheapest flights to Delhi and how to deal with recalcitrant daughters-in-law.

Together, they fend off the well of loneliness and isolation that so often accompany the move to this country late in life from distant places, some culturally light years away.

“If I don’t come here, I have sealed lips, nobody to talk to,” said Devendra Singh, a 79-year-old widower. Meeting beside the parking lot, the men were oblivious to their fellow mall rats, backpack-carrying teenagers swigging energy drinks.

In this country of twittering youth, Mr. Singh and his friends form a gathering force: the elderly, who now make up America’s fastest-growing immigrant group. Since 1990, the number of foreign-born people over 65 has grown from 2.7 million to 4.3 million — or about 11 percent of the country’s recently arrived immigrants. Their ranks are expected to swell to 16 million by 2050. In California, one in nearly three seniors is now foreign born, according to a 2007 census survey.

Now let’s look at this 16 room hotel in Otavalo that you can have for almost nothing… maybe even free and how it could offer a business that solves this problem.

First, let me detail the hotel and why a fabulous bargain has come up… and how this hotel can fit into the friendship market.

This  is an really good Ecuador income opportunity, a…

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hotel for sale in Otavalo.

The owners have had this on the market for a number of years at one million dollars. We thought this price was too high and never wrote about it.

Earlier this year they dropped the price to $750,000 and offered us $150,000 commission if we sold it. I wrote then:  The owners offered us a $150,000 commission to sell the hotel. We are not brokers and do not take commission so our reply was “cut the price for our readers”!  This would place the price at $600,000… an interesting value.

$600,000 may have been interesting but the owner now just emailed us and dropped the price to $495,000.  This places the price beyond  an interesting value into the bargain range.

Plus the owners again offered us a commission.  We do not take commissions so whatever (how much commission was not clear) amount they would pay could be deducted from this price.

This makes the hotel a real bargain.

At $750,000 the commission of $150,000 was 20%.  We don’t know of course about the commission, and I didn’t want to wait to verify this because this hotel is valuable, beautiful and it could  work out at about $35 a foot on the building and leaves you the land (which right next to Otavalo market is worth a lot).

Yet there is more. I believe you can get the land and the 16 room hotel for almost nothing.

I’ll explain how below.

First: the hotel details. The hotel is right next to Otavalo Market, one of the largest tourist attractions in Ecuador.

The property has these characteristics:  Appx. 30,000 sq. feet of  land and 12,000 sq.  feet of  building in 3 apartments and 16 hotel rooms.

Property Details:  The property consists of approximately 30,000 square feet of land, with trees, gardens and many types of exotic birds.  The gardens…

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are large… well groomed and…

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have a wonderful patio.

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Ma too likes it there.

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There is approximately 12,000 square feet of solid brick and cement construction.

On the property, there is plenty of room for expansion and development, especially in a town where there is absolutely no land left to develop.  The building is built in the old colonial style with finely crafted hardwood arched windows and doors, rustic floor tile and traditional clay-tiled roof.  The building is constructed according to U.S. anti-seismic standards.

The owner claims this is one of the best built constructions in Otavalo—and one of the prettiest in the city!

The building boasts excellent water pressure on all four floors. (Please don’t pooh pooh this quality!) The building has a powerful, propane gas-fueled boiler system capable of producing up to 700 gallons of hot water a day.  With access to the land/building from two streets, the property has frontage on 3 streets, which have been newly paved by the City of Otavalo.

Characteristics:  16 rooms, large social area (restaurant), large working kitchen, two medium-sized apartments, one large penthouse apartment, small building in back (approximately 250 square meters) that serves as a laundry room and storage facility, which also has a full bathroom and a working fireplace.  This could easily be converted into a small rental property.  Adjacent, yet private, to the main property, and which consists of 350 square meters of our total property, is a working area and parking garage (which can accommodate approximately 6 cars), with clothes lines, and general storage area.

First floor: Consists of large working kitchen, with back door exit to outdoor enclosed pantry/food storage room, laundry area and herb garden.  There is a large dining room (approximately 2,500 square feet) with excellent working fireplace, and space to comfortably entertain 60 or so people.

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Reception.

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Restaurant is beautiful also.

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The dining room leads outside onto the tiled patio and garden where there are tables and chairs for serving and relaxing, and this area may be used to accommodate another 30 or so people.  Also on the first floor there are 8 rooms which have served as hotel rooms, each 55 X 45 feet  in size with large bathrooms.

All rooms face out into the garden and the property is in front of Mount  Imbabura.   Hundreds of hummingbirds and exotic birds roam the grounds.

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Patio seen from one of the three apartments.

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Hotel room…

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shots.

Second floor: There are two spacious apartments, each about 1,100 square feet in size, with glass windows looking down onto the garden.

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Apartment #1 view…

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Apartment#1 bedroom.

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Apartment #1 Living room

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and kitchen.

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Each apartment has a large bathroom and a kitchenette with small balconies in the back.  Also on the second floor there are 8 more rooms, equal to the rooms on the first floor, that open onto a balcony over-looking the garden.

Apartment #2 living room

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Bedroom.

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bathroom.

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Third floor:  There is a very large “penthouse” apartment, approximately 2,250 square feet with large glass windows and a large balcony overlooking the garden.  This apartment has one bathroom with a small adjacent room that may be converted into a sauna, large spacious kitchen and living room, two large bedrooms, and a large working fireplace.

Penthouse…

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views.

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Penthouse.

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Penthouse fireplace.

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Kitchen.

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Penthouse bedroom.

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Extra room.

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Penthouse bedroom #2.

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The Roof: The penthouse apartment has stairs that lead to the roof, where there are two 5,000 gallon reserve tanks for storing water (if needed), as well as more storage space.  As stated before, there is excellent water pressure on all 4 floors.  Also includes a solar hot water system which connects into the boiler system.

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Two 5,000 gallon water storage tanks…

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plus solar water heater.

This is an excellent facility with wonderful grounds in a high priced area..

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Let’s look at the owner’s explanation of why they have lowered the price… then we’ll see how to get this hotel for almost nothing.

Hello Merri and Gary,  This is Margaret from Ali Shungu in Otavalo. I have been living up here on the mountain for about 6 months full time, going back and forth to the Hotel.  I feel better up here in my little house with my projects.   I have been recovering from an illness and have been in the hospital in Quito. They said that if this diverticulitis does not clear up, and it has been bad for about 6 months with 3 months of vomiting, fever, etc.,–that I will need an operation to remove it.  I’m drinking all kinds of herbs and aloe vera cactus and only boiled simple foods, and hoping to heal without an operation.  Did 2 rounds of antibiotics, might have to do more…….I will say though, that the hospital bill was not that bad in Voz Andes for all the tests that I had and treatments, etc.   I will now take care of myself more, and do more praying!  I might need intravenous antibiotics but I do not want to go back to the hospital in Quito.

There you have it… a owner whose health no longer allows them to run the hotel nor wait out a high priced buyer.

Here is how to get this 16 room hotel for almost nothing. I believe that the three apartments, if separated from the hotel and sold on their own, are worth near the price of the hotel.   I do not know the Otavalo real estate market so well…but I have seen the apartments and penthouse and they are exquisite.

If they are and if you can buy this for hotel in the $400,000 range… this means the 16 room hotel, the grounds and the restaurant are almost free.

This will require some negotiating, some work and legal work  (Ecuador lawyers are not very expensive)… but could provide one heck of a deal.

We have put our Ecuador Living subscribers in touch with the sellers.  To gain this contact information you can subscribe to Ecuador Living here.

If the hotel is not under offer, we’ll show it on our upcoming October Andean Real Estate tour.    See tour details here.

Merri and I are not involved financially in any way with this offer.  We have not looked at the hotel’s financial accounts, legal situation, titles, nor had an engineering inspection, so be sure to take all normal precautions if you are interested.  Especially look at the labor obligations you’ll absorb.

Our recommendation for those who are interested in Ecuador is to come visit first… look around… rent and stay awhile… before you buy.  One reason for this recommendation is that when you are here awhile you’ll see bargains… like this and I believe for the reasons stated that Hotel Ali Shungu is now a bargain.

Now let’s see how this creates opportunity from the problem of rootlessness.

Americans and Canadians are flocking to Ecuador.  I know.  Our Ecuador Living business is going wild.  The subscription pace has almost doubled recently and the request for rentals in this area has skyrocketed past our ability to keep up!

The demand is especially strong at the lower income level… those who are retiring and can no longer have a decent life in Canada or the US… especially in places where there is winter sun.

There people are isolated… often not speaking Spanish and with little to do.   So Turn this hotel into a residence for gringos. Provide free internet… US papers…. weekly Spanish lessons… a support program… group tours, travel assistance etc.

There is one more value.  Yesterday’s message How to Make Money in this Multi Currency Era explained how, due to the falling US dollar, Ecuador real estate has become a 10% better value since this last February.

Gary

The greatest asset of all is the ability to earn globally in many currencies.

This is why we are providing a special three for one offer with our  course Tangled Web… How to Have an Internet Business that can help you create your own internet business.

Our emailed course “Tangled Webs We Weave – How to Have Your Own Web Based Business” is a continuing educational program.  You receive the first 28 lessons when you enroll and a new lesson every week or two.

This course teaches how to create a web based business and is developed from the ongoing experiences that we have from our successful and profitable internet business.

This course is well worth the enrollment fee of $299… but currently you also receive two additional courses FREE.

The other two courses are #1: International Business Made EZ, and #2: Self Fulfilled – How to be a Self Publisher.

These two courses have sold for $398 and thousands have paid this price. We add them to your course at no added cost as I believe they will help you develop a better business in these crucial times..

Even Better Get All three Courses Free

To make this offer even more compelling,  I am giving everyone who enrolls in our North Carolina or Ecuador International Business & Investing seminar in October or November all three courses, “Tangled Web… How to Have an Internet Business Course,”  “Self Fulfilled- How to be a Self Publisher” and “International Business Made EZ” free.

Join us with Jyske Bank and my webmaster David Cross in West Jefferson North Carolina. Learn more about global investing, how to have an international business at the seminar.

Oct. 9-11 IBEZ North Carolina with our webmaster  David Cross & Thomas Fischer of JGAM

Or head south to Ecuador!

October 16-18 Ecuador Southern coastal tour

Oct. 21-24 Ecuador Import Export Tour

Oct. 25-26 Imbabura Real Estate Tour

Join us with Peter Laub of Jyske Global Asset Management in Ecuador. Learn more about global investing, how to have an international business at the seminar.

Nov. 6-8 IBEZ Ecuador Seminar

Nov. 9-10 Imbabura Real Estate Tour

Nov. 11-14 Ecuador Coastal Real Estate Tour

Join us in the mountains and at the sea. Attend more than one seminar and tour and save even more plus get the three emailed courses free.

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

Read the entire article Invisible Immigrants, Old and Left With ‘Nobody to Talk To here.

How to Make Money in the Multi Currency Era


The US and Ecuador property market offers a rare opportunity to make money in this multi currency era. Here is an excerpt from a recent multi currency update.

Two economic forces have come together to create extra special profits.

I know because the same  combination occurred in London during the late 1970s and allowed me to increase an investment eleven times in two years by buying property then.

Earlier in 1970 I had lived in London, England for a year, then moved to Hong Kong. During that time I also maintained a home outside of San Francisco, California.

This was a time of great inflation. My homes in California and in Hong Kong appreciated greatly. In the mid 1970s, when I moved from Hong Kong back to London, I noticed that London real estate was priced about the same as it had been in 1970. This puzzled me. Why had London property prices remained flat despite inflation?

On investigation, I learned that there had been a huge real estate crash in 1970 which continued to dampen real estate prices six years later despite the rampant global inflation. I felt this was a great distortion as European property prices had risen, but London prices had not. Yet London offered the best utility as the center of the English speaking world. This, to my way of thinking, created a huge distortion.

It’s late 1976. Britain faced  a sterling crisis. In less than two years the pound has fallen from $2.40 to $1.60. Investors had no faith in the British economy, or the government that ran it. The government’s budget was a mess.  Investors  were ditching the pound.

The plummeting pound pushed the economy to breaking point. Prime Minister Callaghan, in desperation borrowed as much as possible, £2.3 billion from the IMF.

At that time, the British pound collapsed to its lowest level ever (a pound per dollar for a short time) so the distortion widened. This meant in US dollar terms London property had dropped almost 50% while property in other major cities of the western world had increased in price by three or four times.

london-house

The house I bought was right next door and very similar to this house in Bedford Park, London W4.

This house in West London was 34,000 pounds, 9,000 pounds down (then $9,000).   I took a mortgage for 25,000 pounds ($25,000).  I lived in the house and three years later the pound had recovered to 2.2 dollars per pound plus London real estate had caught up with property in other major western centers. I sold the house for 115,000 pounds or $253,000 a profit of $244,000 on a $9,000 investment.

Now it’s the US dollar that is very low.

You will have seen articles something like the the September 7, 2009 Bloomberg article “Weak Dollar? Currency, at 10-Year Low, May Fall More” by Bo Nielsen.

An excerpt says: Anyone who says the dollar is weak after it fetched a record-low $1.3681 against the euro and the fewest pence against the pound in 25 years is expressing a euphemism.

The currency may decline at least another 10 percent by the end of 2008, say Jay Bryson, an economist at Wachovia Corp., and Kenneth Rogoff, the former chief economist at the International Monetary Fund. The dollar has only fallen 3.4 percent in the past two years to a 10-year low, according to a Federal Reserve index that weighs trade with 38 countries including China, Mexico, Canada and countries in Europe. It tumbled 30 percent in the three years ended 1988.

“Dollar weakness will be broad-based and could last for years,” said Bryson, a global economist at Charlotte, North Carolina-based Wachovia who previously analyzed currencies at the Federal Reserve.

Investors are dumping dollars, lured by higher returns elsewhere. The U.S. will grow more slowly than Europe for the first time since 2001 and Japan for the first time in 16 years, the IMF forecasts. The difference in yield between 10-year German bonds and Treasuries has shrunk to the smallest since 2004.

Those who read this site regularly or subscribe to our multi currency course know that I reported my personal portfolio and recommended getting out of the US dollar in February 2009. See that recommendation here.

I showed that my portfolio was 86% out of the greenback.

My liquid portfolio currency allocation was reported as Brazilian real  4%,
 Denmark kroner  33%
,  euro 31%
, British pound 10%
, Turkey lira 8%
, US$ 14%.

I also mentioned in February that I was going to start buying Florida real estate.

So Merri and I began looking and in our research found that there appears to be a hole in the market for Central Florida property selling in the million to $750,000 range.  There seems to be no buyers at all. We have been watching prices tumble hundreds of thousands.

We are viewing one property next week that started at $800K+. It just dropped $100,000 last week from $395,000 and is now down to $295,000.

This is about a 25% drop in that house’s price in six months. That’s pretty good!

Now look at what this means in depreciated dollar terms.

dollar-chart

Here is a chart of the euro to US dollar from yahoo.finance.com from February 2009 to September 10, 2009 when this was written.

In February a US dollar bought .80 euro so that house at $395,ooo cost 319,200 euro.  Now a US dollar buys about .68 euro so this house at $295,000 costs about 200,000 euro.

That is a drop in that house price of 37% in six months in terms of euro. That’s even better!

Here is the magic in this hidden, built-in profit.  For most of the market, the profit is hidden.  Most investors are not comparing currencies and real estate prices.  Yet these distortions will filter through. Eventually European investors…. or those like me who are holding currencies other than dollars will see this distortion and cash in.

I, and now you, just have an advantage because we are always looking at both markets… currency and real estate.

Ecuador Real Estate Cheaper as Well

This also creates better value on Ecuador real estate. Take for example one penthouse property I am selling at $139,000.

This is a perfect property for those who want peace… quiet…and instant access to miles of empty, warm Pacific beach.

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This two room, top floor penthouse is at Palmazul and includes use of the the swimming pool, tennis courts… and spa.   You can dine here, one floor below.

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The units are fully equipped… kitchen…

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with full size fridge.

Living room…

Ecuador beach rentals with a view…

Ecuador beach rentals leading…

Ecuador beach rentals to large private balconies…

Ecuador beach rentals with these views…

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and sunsets to kill for.

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Long walks on the beach… you can amble at low tide for ten miles and not see a soul.

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Luxury bathrooms with bathtub…

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and a king size bed with view and caressed by the ocean breeze.

Ecuador beach rentals

This unit would have cost 111,000 euro in February. Now the price has dropped to 94,500 euro… just from the dollar’s fall.

The US and Ecuador property markets offers a rare opportunity to make extra profit now because of hidden added value from the US dollar’s fall. History suggests that real estate is a real asset so its price rises as the currency its counted in falls.

These corrections take time because most property owners do not calculate their property in multi currency terms.  Those of us who watch this can gain extra profit now.

The article above is an excerpt from a recent Multi Currency update. Learn more about multi currency investing. Subscribe to our multi currency course.

Gary

The greatest asset of all is the ability to earn globally in many currencies.

This is why we are providing a special three for one offer with our  course Tangled Web… How to Have an Internet Business. This can help you create your own internet business.

Our emailed course “Tangled Webs We Weave – How to Have Your Own Web Based Business” is a continuing educational program.  You receive the first 28 lessons when you enroll and a new lesson every week or two.

This course teaches how to create a web based business and is developed from the ongoing experiences that we have from our successful and profitable internet business.

This course is well worth the enrollment fee of $299… but currently you also receive two additional courses FREE.

The other two courses are #1: International Business Made EZ, and #2: Self Fulfilled – How to be a Self Publisher.

These two courses have sold for $398 and thousands have paid this price. We add them to your course at no added cost as I believe they will help you develop a better business in these crucial times.

Even Better Get All three Courses Free

To make this offer even more compelling,  I am giving everyone who enrolls in our North Carolina or Ecuador International Business & Investing seminar in October or November all three courses, “Tangled Web… How to Have an Internet Business Course,”  “Self Fulfilled- How to be a Self Publisher” and “International Business Made EZ” free.

Join us with Jyske Bank and my webmaster David Cross in West Jefferson North Carolina. Learn more about global investing, how to have an international business at the seminar.

Oct. 9-11 IBEZ North Carolina with our webmaster  David Cross & Thomas Fischer of JGAM

Or head south to Ecuador!

October 16-18 Ecuador Southern coastal tour

Oct. 21-24 Ecuador Import Export Tour

Oct. 25-26 Imbabura Real Estate Tour

Join us with Peter Laub of Jyske Global Asset Management in Ecuador. Learn more about global investing, how to have an international business at the seminar.

Nov. 6-8 IBEZ Ecuador Seminar

Nov. 9-10 Imbabura Real Estate Tour

Nov. 11-14 Ecuador Coastal Real Estate Tour

Join us in the mountains and at the sea. Attend more than one seminar and tour and save even more plus get the three emailed courses free.

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

Read the entire articles:

Weak Dollar? Currency, at 10-Year Low, May Fall More

Dollar Is Near Lowest in Almost Year as Borrowing Costs Plunge

Self Publishing Gift


A self publishing delegate sent the note below… a gift to me because I love seeing people have success… especially when they have  attended one of our courses.

internet-business-idea

Spring on our farm.  As we adjust to the seasons, we must adjust to changing economies and times.

See how Todd Smith’s note below can be a gift to you as well.

In October 2005, I attended Gary’s “Self-Fulfilled” course on how to become a self-publisher.  At the time, I was a successful wedding photographer in Richmond, VA, and while I enjoyed my work, it didn’t completely fulfill my creative desires.  There are things you never get to express when you are working for clients.

I wanted to create a photography job that would fulfill me as an artist and give me the potential to scale my income instead of working by the job as a wedding photographer.  In the end, there are only 52 weekends a year, which means there was a cap on my wedding income potential.

Gary’s course was packed with knowledge and practical tips of how he has created and run a self-publishing business for decades.  I loved his simple description of self-publishing:  “to inform.”  He encourages his students to pick something that they are passionate about and to make that the basis of their businesses.

I love nature photography, flowers, landscapes, travel etc.  I also love spirituality, and I was a monk for a number of years.  Combining these two loves I started a free email newsletter two years ago to share new photos and to share my own uplifting observations or experiences every week.

People tell me that they look forward to my email every Thursday… some call it therapy, others pray that it will never stop.  Everyone agrees that it is a highlight of the week.

“Beautiful newsletter!  Soft and lovely way to start the day.”  Jean Byrd Frederick, MD

“You are such an artist Todd, your words paint a picture!” Bernie Koftinoff, Kelowna, BC

This newsletter has become the basis of my business.  It accomplishes two things:  1. It gets me out taking new pictures every week and hones my writing skills.  2. It keeps my work in front of people who like seeing it.

When I first published a wall calendar two years ago I sent a message to my list of 120 readers and I sold 150 calendars! If you take care of your readers they will pay you for your efforts.  This year I printed 1000 calendars and have already sold 53 in just one week in the middle of August without strongly promoting it.

As I continue to build my business through search engine optimization and promotions to other lists my base of loyal customers is growing.  Gary detailed in his course everything I needed to know to make this happen.  From time to time I look back at the huge manual he gave us as part of the course material and I discover another creative way to improve my marketing.

Publishing is a very old profession, and it is all about marketing.  The biggest piece of advice I learned from Gary’s course was “write the marketing piece before you create the product.”  Gems like this have kept my business on target in early growth phase which devours many startups.  Thanks to Gary I’m not completely flying by the seat of my pants!

I love the way Gary uses publishing to create a lifestyle that is fulfilling to him.  I use it in the exact same way.  While there is a lot to do in the startup phase, everything I do is cumulative, allowing me more and more free time to do what I love:  take photographs and enjoy a pace of life which is not breakneck.  When I was on the course four years ago, I told him I wanted to step out of the rat race.  By becoming a self-publisher I have done just that.  I can speed up or slow down my business as I like and I can choose what I want to publish.  It is a business that allows maximum freedom in life.

If you like working for yourself on your own hours and are considering becoming a self-fulfilled publisher like me, I highly encourage you to take Gary’s course and learn from someone who has been doing this successfully for years.  He certainly gave me a boost, and I still use many of things I learned four years ago in my business today.  Todd

This is nice to read… a benefit to me.  There is a benefit for you as well.

As a special promotion to my readers Todd is offering a 10% discount on his 2010 photography calendar.

self-publishing-idea

You can purchase Todd’s calendars here.  Merri and I already have received ours that we ordered for friends on our list.

Just add the calendar to your cart and use the promotion code, “garyscott” to receive a 10% discount when you check out.

internet-business-idea

Summer on the farm.  When opportunity is hot we must seize it!

Knowing how to earn through your own internet business grows in importance as unemployment grows and more importantly as types of employment shifts.

Excerpts from the September 5, 2009 Wall Street Journal article, “Job Losses Weigh on Recovery Layoffs Slow but Unemployment Rate Hits 9.7%, Highest Since 1983” by Sudeep Reddy shows that getting a job is a diminishing option.

Here is the excerpt: Nonfarm payrolls fell by 216,000 jobs in the month, fewer than the 276,000 lost in July, the Labor Department said Friday. The economy has shed 6.9 million jobs since the recession began in December 2007. The data reinforced expectations that employers will begin adding jobs by early next year, though the pace of job creation remains uncertain.

The latest figures are consistent with an economy pulling out of the deepest downturn since the Great Depression. But rising unemployment portends persistent weakness in consumer confidence, income and spending, even as manufacturers start bouncing back and stocks revive. The construction and manufacturing sectors together accounted for more than half of August’s job losses. Losses in retail and business services narrowed. The biggest gains came in health care.

The rise in unemployment, after dipping to 9.4% in July, came as more Americans returned to the work force. Teenage unemployment hit 25.5%, the highest since the government began keeping records in 1948. Most economists expect the rate to top 10% in coming months and stay over 9% through 2010.

internet-business-idea

Autumn on the farm. When times change, we must embrace change.

Even more important is the fact that when the economy recovers the types of jobs available will have changed.  Older workers and graduating students may especially be affected.

Excerpts from a September 8, 2009 article “Job change takes on a new meaning”
in the Chicago Daily Herald show how greater skills will be required. The excerpt says: If this recession has taught us anything it’s the times they are a changin’, especially when it comes to business and the labor market. And, we must coach not only unemployed workers, but also high school and college students to recognize that and look to where the jobs will be in the future when considering a career.

The reason is pretty clear. Some bellwether corporations have gone bankrupt, entire industries are rethinking and reshaping their business plan; several traditional can’t miss careers are no longer sure things.

The American work force was sent reeling by corporate cutbacks. The jobless rate now flirts with 10 percent, and the economy has shed nearly 7 million jobs since the start of the recession.

Those numbers reflect laid off workers, but they also affect graduating students unable to start their career because no jobs are available.

And, that’s why workers – current and future – need to think change.

Energy jobs, especially at companies stepping up environmental initiatives, are expected to be an area of growth.

Do you have an interest in global business? It’s more important now than ever to ask two key questions when investigating a career choice: Where will the jobs be in the future? And what do I have to do to get one?

internet-business-idea

Winter on our farm. When times are harsh, we must bundle up, hibernate or move to warmer spots… like Ecuador (see below).

Merri and I love seeing people succeed.  We can all have success when we embrace change!

Please send your stories of job change success and see below how we can help you succeed.

Gary

The greatest asset of all is the ability to labor at what you love wherever you live. This brings everlasting wealth.

This is why we are providing a special three for one offer with our  course Tangled Web… How to Have an Internet Business

This course can help you create your own internet business.

Our emailed course “Tangled Webs We Weave – How to Have Your Own Web Based Business” is a continuing educational program.  You receive the first 28 lessons when you enroll and a new lesson every week or two.

This course teaches how to create a web based business and is developed from the ongoing experiences that we have from our successful and profitable internet business.

This course is well worth the enrollment fee of $299… but currently you also receive two additional courses FREE.

The other two courses are #1: International Business Made EZ, and #2: Self Fulfilled – How to be a Self Publisher.

These two courses have sold for $398 and thousands have paid this price. We add them to your course, at no added cost, as I believe they will help you develop a better business in these crucial times..

Even Better Get All three Courses Free

To make this offer even more compelling,  I am giving everyone who enrolls in our North Carolina or Ecuador International Business & Investing seminar in October or November all three courses, “Tangled Web… How to Have an Internet Business Course,”  “Self Fulfilled- How to be a Self Publisher” and “International Business Made EZ” free.

internet-business-idea We always conduct our autumn North Carolina course on the first weekend of October… the best time to enjoy  the leaf change.

Join us with Jyske Bank and my webmaster David Cross in West Jefferson North Carolina. Learn more about global investing, & how to have an international business at the seminar.

Oct. 9-11 IBEZ North Carolina with our webmaster  David Cross & Thomas Fischer of JGAM

internet-business-idea

You’ll see views like this on your way to West Jefferson for the October seminar.

Or head south to Ecuador!

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October 16-18 Ecuador Southern coastal tour

Oct. 21-24 Ecuador Import Export Tour

Oct. 25-26 Imbabura Real Estate Tour

ecuador-hotel

In Cotacachi the weather is always Spring like.  Here is the village plaza near our hotel Meson de las Flores.

Join us with Peter Laub of Jyske Global Asset Management in Ecuador. Learn more about global investing, how to have an international business at the seminar.

Nov. 6-8 IBEZ Ecuador Seminar

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Let our friendly staff at Meson de las Flores serve you.

Nov. 9-10 Imbabura Real Estate Tour

Nov. 11-14 Ecuador Coastal Real Estate Tour

ecuador-hotel

This shorts weather photo was taken from our beach penthouse in February.

Join us in the mountains and at the sea.  Attend more than one seminar and tour and save even more plus get the three emailed courses free.

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

Read the entire articles: “Job Losses Weigh on Recovery
Layoffs Slow but Unemployment Rate Hits 9.7%, Highest Since 1983″

Job change takes on a new meaning

Investing in Chaos


Many recent messages have looked at living, business and investing in chaos during times of turmoil and change.

investing-in-chaos

Ecuador at times may seem chaotic.

Chaos is caused by transition from one wave of productive technology to another.

Investors and businesses who understand this have an enormous advantage because they know to look for the next wave.

In a moment, we’ll look at the potential for chaos in Ecuador.

First, let’s look at some positive chaos that could ruin some basic utilities but also create millions (maybe billions) for some businesses and investors.

The industrial revolution has been a time of continual chaos.  There was a time of turmoil when mankind shifted from steam technology to the internal combustion engine. Investors who had been big in railroads (but were smart) shifted to investing in automobiles and trucking and bus lines.

Then chaos came again when the jet engine made the airplane a more effective form of transportation than long distance.  Bus travel and smart investors shifted from Greyhound into airline shares.

In the information era; the PC, Internet (and Microsoft) became the major carrier of mankind and investors who saw this potential once again jumped ahead of the pack.

Where do we go next?

One new wave of technology may come in a product we all take for granted…. creating what I would call the independence era. Let’s just look at the break through.

A forward looking reader sent me the Utah Daily Herald article “New battery could change world, one house at a time” by Randy Wright.

Here is an excerpt:  On a modest building on the west side of Salt Lake City, a team of specialists in advanced materials and electrochemistry has produced what could be the single most important breakthrough for clean, alternative energy since Socrates first noted solar heating 2,400 years ago.  — a new generation of deep-storage battery that’s small enough, and safe enough, to sit in your basement and power your home.

It promises to nudge the world to a paradigm shift as big as the switch from centralized mainframe computers in the 1980s to personal laptops. But this time the mainframe is America’s antiquated electrical grid; and the switch is to personal power stations in millions of individual homes.

The battery breakthrough comes from a Salt Lake company called Ceramatec, the R&D arm of CoorsTek, a world leader in advanced materials and electrochemical devices.

The convergence of these two key technologies — solar power and deep-storage batteries — has profound implications for oil-strapped America.

With small-scale electrical generation taking place at millions of individual homes — as opposed to today’s large-scale power generation from a handful of giant power plants — there would be less worry about what’s called “point failure” on the grid. That’s when a single component gets knocked out and shuts off power to a whole region. California-style rolling blackouts would be history.

The threat of terrorism has heightened the worry. But wide distribution of batteries in homes would virtually eliminate it.

Inside Ceramatec’s wonder battery is a chunk of solid sodium metal mated to a sulphur compound by an extraordinary, paper-thin ceramic membrane. The membrane conducts ions — electrically charged particles — back and forth to generate a current. The company calculates that the battery will cram 20 to 40 kilowatt hours of energy into a package about the size of a refrigerator, and operate below 90 degrees C.

This may not startle you, but it should. It’s amazing. The most energy-dense batteries available today are huge bottles of super-hot molten sodium, swirling around at 600 degrees or so. At that temperature the material is highly conductive of electricity but it’s both toxic and corrosive. You wouldn’t want your kids around one of these.

The essence of Ceramatec’s breakthrough is that high energy density (a lot of juice) can be achieved safely at normal temperatures and with solid components, not hot liquid.

Ceramatec says its new generation of battery would deliver a continuous flow of 5 kilowatts of electricity over four hours, with 3,650 daily discharge/recharge cycles over 10 years. With the batteries expected to sell in the neighborhood of $2,000, that translates to less than 3 cents per kilowatt hour over the battery’s life. Conventional power from the grid typically costs in the neighborhood of 8 cents per kilowatt hour.

Re-read that last paragraph and let the information really sink in. Five kilowatts over four hours — how much is that? Imagine your trash compactor, food processor, vacuum cleaner, stereo, sewing machine, one surface unit of an electric range and thirty-three 60-watt light bulbs all running nonstop for four hours each day before the house battery runs out. That’s a pretty exciting place to live.

And then you recharge. With a projected 3,650 discharge/recharge cycles — one per day for a decade — you leave the next-best battery in the dust. Deep-cycling lead/acid batteries like the ones used in RVs are only good for a few hundred cycles, so they’re kaput in a year or so.

How do you recharge? By tapping your solar panels or windmills. It’s just like plugging in your cell phone or iPod, only you plug in your house.

A small three-bedroom home in Provo might average, say, 18 kWh of electric consumption per day in the summer — that’s 1,000 watts for 18 hours. A much larger home, say five bedrooms in the Grandview area, might average 80 kWh, according to Provo Power. Either way, a supplement of 20 to 40 kWh per day is substantial. If you could produce that much power in a day — for example through solar cells on the roof — your power bills would plummet.

“Batteries and PV are about to merge,” said MIT’s Nocera, using the shorthand for “photovoltaics” or solar power. “First Solar is now saying that it takes $1 a peak watt to manufacture, and another 80 cents for installation. So they’re saying that you can get PV for under $2 a watt. That’s a reduction of cost by a factor of four. Only a few years ago, it was $8. If CoorsTek and Ceramatec come up with a good battery, the market will develop quickly.”

The long-term impact of home electric generation for a power company’s business model could be huge. After all, you can’t stay in business if nobody’s paying for power. Exactly how that will play out remains to be seen.

This technology is new to me… but seems breathtaking and loaded with opportunity.  Please send any thoughts, ideas, information or opinions you have.

Before you invest though, remember the golden rules of investing.

1. Money isn’t everything
2. Work only with people you like
3. Buy businesses, not stocks
4. Invest only in what you understand
5. Don’t over diversify
6. Keep looking for new opportunities
7. Buy businesses you plan to keep for life
8. Look for businesses that are available at a good price
9. Do what you like

Potential Ecuador Chaos

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The people of Ecuador are friendly and happy.

There is some potential for change in Ecuador that could benefit those moving and investing there.

First, let’s look at the cause of the turmoil.  A recent message entitled Investing Internationally shared news about the Ecuadorian government’s plan to take back a number of radio and TV frequencies stations. We promised to stay tuned to what happens and share observations and opinions from trusted sources in Ecuador about this.

Since that time, the Western press has published even more bad sounding news.

A recent AP article entitled “Ecuador Wants Citizen Committees To Defend Gov’t” said:  QUITO, Ecuador — Ecuador wants to create local citizen committees that would defend the government and its “revolution” — sparking criticism that the president aims to control opponents in a system reminiscent of Cuba or Venezuela.

Citizen Participation Minister Doris Soliz told Ecuador TV on Thursday that local citizen groups are needed to defend against coups like the one that recently deposed Honduran President Manuel Zelaya, or against outside agitators, noting U.S. military plans to use Colombian bases.

Other articles covered lots of rhetoric from Venezuela’s President about winds of war in the area (Chavez’s commenting on the announcement that the US would place military in Colombia).

Since the daily press distort, dramatize and magnify the negative; here are more comments from Ecuadorian business people with this comments.

Dear Gary: Sorry for the delay in my reply.  Correa is an unpredictable president.  On one hand he tries to emulate everything Chavez has done in Venezuela.  It is clear that Chavez gave him millions to finance his political campaigns and now he is obligated to do whatever Chavez wants.

On the other hand, he knows how far he can push the people of Ecuador.  If he is not careful, he can end up like Zelaya in Honduras.  I see strong confrontations coming if he tries to close radio and TV stations like Chavez did.

As you say in your reports.  We all need to be diversified in order to avoid problems in one place and not have anywhere to go in thing go bad.  I do believe the Ecuadorians are not as passive as the Venezuelans, and if Correa pushes too far he will find out. Let’s wait and see.

I agree with this reader. Ecuadorians are an independent people, and I have watched them (peacefully) oust a number of Presidents who abused their power.

Here is another opinion from one of my many sources.

Gary,  My comments are just some personal opinions and for that reason I prefer that I not receive any credit.   There is some noise going around that Correa wants to have “block leaders” who will report back to the government of any dissent. You can imagine what this means. Stifling dissent. It is a time to be careful and hope the Ecuadorian military remains faithful to the people of Ecuador. While there are so many needs and opportunities in Ecuador to be attended to, one could ask why does the president feel it is necessary to be out speaking of “winds of war blowing” against Colombia?
Anyway, it all comes with the territory of being in the Latin governmental world I suspect.  If the leaders were just humble people looking to improve the lot of their people instead of being megalomaniacs hell bent on being Castro or Hitler, life would be easier for all.

investing-in-chaos

Here are children in a parade in Cotacachi.

Readers should note that it was not Correa, Ecuador’s president who made the comment about Winds of War but Chavez of Venezuela. A lot of press makes it sound like Correa is much more closely aligned with Chavez than I believe he is.  Good or bad, I do believe that Correa is his own man and is pretty independent.

Here is another comment by an Ecuadorian with a great political and historical background.

Thanks for asking.  Correa. He is all right.  His big problem is being too young.  There is
a proverb in Spanish “mas sabe el diablo por viejo que por diablo”.  (
The devil knows more because he’s old than because he’s the devil). That is Correa’s problem.  He is not old enough.  Velasco Ibarra who was president five times, was very much like Correa, when he was young. When he grew older he became much more sedated.

Again I agree with this. Everything I have seen has led me to feel that Correa has many good intentions and is trying to correct many wrongs and has a big job.  In his youth he may be too ambitious and impatient.  Time, inertia and politics should correct a lot of that!

Here are more comments.

He usually talks too much.  He talks every Saturday for 3 or 4 hours continuously.  It is not highly recommendable to quote him or mention his speech. Sometimes he just changes his mind. Or does not follow what he mentioned in the previous weekend.

That could describe more than one politician!

I have met the President a couple of times. He actually stopped next to us on the street at 9pm at night and met our son and was very sincere and asked what we thought about how things were here in Ecuador.  He is very headstrong, but I think that he is a very intelligent guy and he knows how to negociate  and what it is going to take for Ecuador to become a stable economy and that is with foreign investment and tourism.

Again this is the way I see it as well.

This is from a Quito businessman:

Dear Gary:  Many thanks for sharing the concerns some of your readers have about President Correa. I get some emails on the subject too.  I should start by saying that I am no fan of President Correa,  far from it. I don’t particularly like his discourse as if from the union trenches of the 60s and 70s.

Some of his economic policies seem to go counter current and his relative closeness with Chavez is a blemish.

Nonetheless, there are merits too, amongst which is great effort in improving education and health care. Also, in attempting to fix some wrongs and distortions we’ve had on several fronts.

In spite of Correa’s antics, Ecuador continues to offer, and perhaps more so than ever, rather remarkable opportunities for real estate investors, visitors and expats.

Let me explain:

The new, fresh-out-of-the-oven, Ecuadorian Constitution states, following with the tradition of the previous one, that foreigners have exactly the same rights as Ecuadorians under the law.

Furthermore, private property is protected under the law as one of the main pillars of our economy. Confiscation is prohibited and eminent domain (expropriation) situations are extremely rare, much less so than what they would be in Miami, London or Toronto for that matter.

While some people may believe that Correa is not particularly pro foreign investment, the reality is that Ecuador, just as the next country, needs investment to prosper and, hence, the President is very welcoming of it, he just demands responsible practices.

While the pitfalls of politics-as-usual and nationalistic grandstanding in Ecuador, can and does preclude some major investments from coming in (picture hydroelectric, oil exploration, etc), for most of us, of your readers Gary, this should not be a problem.

Regarding the Government’s stance towards foreigners coming to Ecuador and investing here, something quite nice and reassuring happened to me recently, which is telling about how reality differs from perception.

Here’s the story:

While working in the concept for a coastal development with international capitals and geared mostly towards foreigners, we realized that better government planning and zoning was needed in the area if we were to spread our wings the fullest.

I decided to call the Production Ministry, which is a high level coordination entity on top of many other ministries in Ecuador to see if they could perhaps give us some light as to getting some better zoning for the area.

I was immediately transferred to the head authority in charge of foreign investments in Ecuador and in a few hours was meeting with him along with other officers from the ministry he had called in.
They were not only incredibly welcoming of our ideas and concepts but asked us to create with them a road map not only for planning and zoning, but for infrastructure, education of the local community, and much more.

They have let me know that they are ready to lend a hand as needed and that when the time comes, once we have things down on a plan we can meet with the secretary of the ministry and even President Correa for further vision.

What is the reason for this incredible support? Well, that they are really pro investments and that when you want to do the right thing, doors become open.

On the subject of visas, something that concerns many foreigners, I can say that the President has prompted a very open regime for foreigners to come to Ecuador. However, some changes in the procedures are driving some of us nuts. We just have to adapt.

In any case, you can expect to get a resident visa in Ecuador in 3 to 6 weeks in most cases. The new director of Migration is quite a gentleman and very open and understanding. It’s a pleasure to work with him.

With regards to some radios being closed, this is something the President declared as a possibility on grounds that some radio frequencies had been granted with irregularities according to an audit. While the audit may be correct, President Correa does have a bitter quarrel with the press and his fixation with it is over the top now.

Getting back to real estate; I’d like to add that foreigners have been investing and buying real estate in Ecuador for some time, and that this is a trend that is seemingly quite on the rise.

I am seeing the start of a major wave here.

Ecuador has excellent real estate opportunities and values and the current international crisis where former “safe havens” have been shattered is making this truth about Ecuadorian real estate all the more compelling.

Investors into Ecuadorian real estate ought to buy soundly into capital preservation and important appreciation potential.

As final thoughts, given the current financial problems the world is seeing, the violence in Mexico fending off tourists and investors… the bursting of the real estate bubbles throughout, the baby-boomers coming of age with individuals lusting for active living with quality of life to boot, Ecuador is starting to make some tremendous sense to many.

Our President may be a bit of a showman (to put it somehow), granted; and we as a nation have a ways to go into maturity; we are rough around the edges, but we may have among the warmest, most welcoming people on earth, and no development can buy that.

We have good infrastructure and low cost of living. Those who see beyond the perception should be able to get in early on the trend, ride this major wave and make the best out of it.

These are good points… especially this one… the government may be talking one way or the other… but look at how it is acting. In this case it appears that the government is pro tourism… pro investment and is welcoming residents from abroad.

Here is one final comment.

Gary, I don’t get involved in my host country’s internal politics.  I am however a strong believer in the Open Society and the value of ideas meeting arguments, so I guess I would prefer more media outlets to fewer.  By the by, Ecuadorians I know say this is the first time they feel they cannot express freely what they feel about their government, for fear of repression.

These are two key points also. I do not get involved in politics anywhere.  My feeling is that time is better spent adapting to whatever the politicians do rather than joining into the political fray. Reality is that if you do business fair and well, whatever the political system is you’ll be welcome.  The second point is about freedom of speech.

I recall feeling fear like this recently when talking to my son over the phone. I was about to make a joke about a certain president and decided not to thinking… I had better not joke about this.  The problem was I was in the US… not Ecuador.

The great technology that has created such great access to information has destroyed our privacy as well…everywhere.

My new real estate acquisitions are in Ecuador . Recent messages have looked at the importance of seeing reality. People write often asking if it‘s safe in Ecuador. I was thinking of the reality of this as Merri and I concluded a long Ecuador morning walk. The birds were singing, roosters crowing in the distance and we saw two very young children, a girl of maybe six or seven and her little brother maybe four or five walking alone through the village on their way to school. This is so typical in Ecuador.

I wondered how many children of that age in North America are allowed to walk alone through town as they are in Ecuador.

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More Cotacachi children in a parade.

You see young girls like this (maybe eleven or twelve) walking around night and day. This is not because Ecuadorian parents are careless. It is because there is a great deal of safety in Ecuador .

Here are a few facts I know.

#1: The Ecuador constitution protects landownership of citizens regardless of citizenship. No local government can take land by eminent domain for economic development.

#2: No Ecuador children have been shot in school.

#3: Ecuador schools do not require metal detectors.

#4: No Ecuador police force has used a “no knock” search warrant to break down a door and then shoot an innocent 80+ year old resident 50 times.

#5: We do not worry in Ecuador about being sued if someone spills hot coffee on themselves at our hotel. By the way our coffee is hot here.

#6: Ecuadorian doctors do not have to shut down their practices because of malpractice insurance costs.

#7: Parents in Ecuador are not at risk of having their child diagnosed as having ADD and being forced to give them Ritalin. Read http://www.ritalindeath.com/ if you want to have your heart rendered over the weekend.

investing-in-chaos

There is a deep culture in Ecuador.

Back in early 2007, a potential real estate buyer visited me about buying a $93,000 house in Otavalo. As we enjoyed a “cuppa tea” and visited I could see he loved the house but was really worried about loss of property due to Ecuador’s constitutional reform.

My view was that the reform was unlikely to reduce individual land rights. As we can see above, the opposite took place. the constitution strengthened property protection.  Ecuador’s base of wealth has always been individual land ownership.

Then I pointed out to this potential buyer that his  real bigger risk was buying a similar three bedroom house in England. A similar house would cost him between $400,000 and a million dollars. The risk of losing $93,000 in value when the overheated English real estate market dips seemed greater to me than the chances of losing $93,000 in Ecuador because a house would taken due to constitutional change.

Prices were way overblown in England.  This was exactly what happened.  Real estate crashed in England while real estate prices in Ecuador have remained strong.

Plus Ecuador offers the benefits of $1.40 a gallon gas, lovely weather, sweet people, no capital gains tax on real estate sales, very inexpensive but good medical and dental help, ridiculously low property tax, almost no tort liability, inexpensive cost of living, low crime and better food.

In the west, the cost of living is so high that many people can barely move!

So where is it safe to live? I think when Merri and I are really realistic, we feel that there are many aspects of safety in Ecuador.

Many of us feel many changes in our homelands that are not good. If you do, don’t despair, the sun always shines somewhere as it did here in Cotacachi, Ecuador. Here’s the sun coming up!

Merri and I always practice diversification…in asset class as well as geographically.  We are over weighted in Ecuador so we are voting with our money that the chaos here will create more opportunity than trouble.

See more about Ecuador diversification here.

Change and chaos are parts of the rhythm of life.  The never ending evolution created by time and space creates turmoil but also opportunity.

We hope the chaos in your life brings only good to you.

Gary

Combining good international investing with the greatest asset of all, the ability to earn wherever you live, brings everlasting wealth in chaos.

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 seminars below.

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

Here is an email for a recent seminar delegate: Amazingly helpful, amazingly timely … thank you for this !

Sept. 17-21 Ecuador Super Thinking + 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.

Read the entire article New battery could change world, one house at a time

International Internet Business Competition


Here is a really important point about international internet business and competition.

In a moment we’ll look at a Vilcabamba Ecuador house for sale.

Ecuador-house-for-sale

First, let’s see why your business can be an also-ran and yet bring you wild success!

Also-ran is described as:

1. A horse that does not win, place, or show in a race.

2. A loser in a competition, as in an election.

3. One that has little talent or success: just an also-ran in the art world.

Most Westerners are raised in a highly competitive environment.  “Win at all costs” is a growing credo in society.

The conditioning “to achieve” spills over when we get into business. Many make the error of thinking that their business must be #1.

Nothing could be further from the truth.

In The Kentucky Derby #1, #2 and #3 are all that count.  The Olympics award Gold, Silver and Bronze.  Everyone else is an also-ran.

In business you can finish 100th and be wildly successful.

In fact the day I produced this message, our website ranked (in terms of reach) 24,604th in the US and 10,012th in Canada.

We could hardly be happier. In fact I am not sure we could handle a faster growth rate.

A successful business requires a balance between three parties… the owners (us)… the customer… you and… the bank. The company must be profitable.

A small business dominated by many, much larger firms can still do well…. make millions in fact.

This is why we are sending you free lessons in internet marketing. Here is the third lesson.

Live Below Your Means

There is a caveat. For your business to remain balanced it (and you) must live within your means.

Most businesses have ups and downs and many inexperienced business people who meet with their  first success, spend it!  They have not learned how to survive sudden wealth.

I learned this lesson, the hard way, as a young executive, (just 25 years old).   My first job abroad was working for a new company in a hot sector.  I was the firm’s eighth employee.

My compensation included a stock option for 50,000 shares at a dollar each.  Within a couple of years the company had grown to 2,000 employees and the company  went public.   The shares were issued to the public at $20 a share.  At 25 I was already a millionaire and those were the days when you could buy more than a house for a million dollars! In fact a million then was worth about $12 to $15 million now.

I had not learned to save, lock in profits or to live below my means. My monthly salary was $750 a month so this wealth was bewildering. I bought everything I could, a new Mercedez 280 SL, a new house and I ran up some nice credit card bills.

Then the stock market collapsed. The sudden drop caused a run on the shares of the company I worked for and it with many similar firms collapsed. The entire industry tanked and the company went broke. I ended up unemployed, with no money and a lot of debt. My stock options weren’t worth the paper they were printed on.

The moral…when you make money, do not spend it all.

Most wealthy people receive their income in spurts. We saw this process regularly during the internet craze. Executives left proven fields to begin bold new startups and in an instant became billionaires!

My experience suggests that sudden financial success creates disaster as often as not.  Recipients of sudden cash make one of two mistakes.

The first mistake is to believe this is the only time there will be such an influx of cash. This tightens a person, so they can’t enjoy spending. They become afraid. Life becomes filled with paranoia. Unhappiness sets in. If money doesn’t make life better, what’s the use?

The other mistake is to think that these large chunks of cash will come easily again and again without worry or working. This thinking creates unrealistic lifestyles and work ethics that lead to disaster.

I first observed this ironic fact while living in England. A happy, financially responsible middle class family won millions in the lottery. Just a few short years after reaping this spurt of cash through supposed good luck, the husband and wife were bankrupt, divorced and no longer speaking to their kids.

I have seen example after example, of people, who received a sudden chunk of income made very unhappy by this large inflow of wealth. This is why it is a risky time when investors make a big sudden profit. The proud owner of new found wealth, buys new cars, houses and becomes very spendy. He creates overhead and debt. If there is a single reversal, everything is lost.

How much is a big hit anyway? One measure is a ten times increase in wealth. This normally is enough to make a significant difference in a person’s life. For someone with a thousand dollars in the bank, $10,000 seems like a lot. The extra money can make a difference. For someone who already has a million dollars, another million doesn’t make such a significant shift. Ten million does.

The reason spurts of profit create problems is because they disrupt our discipline. Money is discipline and our financial affairs have some form of economic routine, either self imposed or not.

We have a set of mental standards that makes us think, “I can afford this, but can’t have that”, etc. Spurts of wealth demolish these standards. Suddenly we can have many things we previously could not. We become, once again, kids in the proverbial candy shop.

Yet much of the Western world spends their lives trying to become and stay independently rich. If succeeding in this process can ruin happiness, what can we do?

First, realize that independent, permanent never-ending, fearless wealth is a process, (not a state) of a continual series of reasonable risks, mistakes, refinements, lessons and actions that culminate in getting it right. When success arrives, there is a huge income (or capital) spurt.

Understand that this is not the only time you can make a huge wad of cash.

Impose discipline. Here is a simple formula.

First, eliminate debt.

When Merri and I bought our house in Naples, we had what we thought was a large mortgage.

We bought a white board and wrote the mortgage amount on it.  Each week we paid whatever was left in our bank accounts on that mortgage and marked the new reduced balanced.  That became our weekly entertainment… paying down the mortgage rather than going to movies or dining out!  This weekly habit never took any money from us that we missed, and yet it gave us in 1 1/2 years total freedom from debt.

Second, trim overheads so they are less than income.

Third,  if you receive a large profit for the first time, immediately spend ten percent of the new money on your dreams. Buy, the Porsche. Take the world cruise. Build the new eight bedroom house. Do whatever you want that does not cost more than ten percent.

Second, give ten percent to a worthy charity. Take a little time, find a need in this world you feel really should be filled and truly give the ten percent away. Third, invest the remaining eighty percent very conservatively. Use the PIEC Everlasting Wealth system.

When we sold our house in Florida for an excellent profit,  we spent 10% to take a year off.

We gave 10% to help Ecuador’s poor.

We bought our farm and lived in a Coleman tent while we fixed up one of the old farm houses located on the farm.

internet - business

Next we turned this old barn into a guest suite, all…

internet - business

with cash flow. We did not touch our saved capital.

Next we built our farm office…

internet-business

and deep woods spa.

internet - business

Finally we built (over three plus years) our dream house in the woods… again all…

internet - business

with cash flow and without touching capital.

Manage Wealth Conservatively

Hire a good, conservative investment manager such as Jyske Bank or for Americans Jyske Global Asset Managers.

This steady, low leverage approach may slow the overall amount of wealth you build… but what you have will be more stable… less stressful and  safer wealth.

Low Cost Ecuador

One reason Ecuador has become so popular is that the low costs make it easier to live below your means.

Ecuador-house-for-sale

See this Vilcabamba Ecuador house for sale.

Finally be grateful every day, not for any lump of cash, but for the fact that even with a modest also-ran business and personal financial discipline you can enjoy wild success!

Gary

Combining good international investing with the greatest asset of all, the ability to earn wherever you live, brings everlasting wealth.

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.

Delegates at our Ecuador seminars and tours enjoy Ecuador music.

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

Here are comments from one seminar delegate about the way we help: Gary & Merri. My wife and I really enjoyed the IBEZ course in West Jefferson this past July. There was a lot of very interesting information. I will be working with David Cross to help set up an internet site. I have some interesting ideas regarding the flowers.   Thanks again for such a great course.

Sept. 17-21 Ecuador Super Thinking + Spanish Course

Sept. 23-24 Imbabura Real Estate Tour

Sept. 25-28 Ecuador Coastal Real Estate Tour

October 16-18 Ecuador Southern coastal tour (early sign up before Sept. 1, $499 per person).

Oct. 21-24 Ecuador Import Export Tour

Oct. 25-26 Imbabura Real Estate 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.

Changes Affecting Retirement in Ecuador or Anywhere


Retirement in Ecuador… or retirement anywhere is changing.

retirement-in-ecuador

Manta is Ecuador’s largest ocean port.  See about shipping and retirement in Ecuador plus a trick to help you retire in Ecuador or anywhere below.

Those who embrace faster change can make their golden years glitter even more.

Those who use old thought in a new world may suffer.

There is a trick to gaining from change which I’ll explain in a moment.

First, an excerpt from the July 30 USA Today article “Older white males hurt more by this recession” by Dennis Cauchon, shows one example about change affecting retirement.  This change is causing more people to retire in Ecuador but affects everyone… even those who are not ready to retire.

The article says:

Dean Canaris, 56, a quality engineer for a Honda automotive supplier, was laid off in April and out the door in 30 minutes with no severance.

Harry Jackson, 55, an airline pilot and supervisor, lost his job in 2007 and, to his surprise, has found it nearly impossible to get another job.

Mark Montgomery, 53, was let go from an Owens Corning insulation factory in April and can’t afford his $575 monthly mortgage payment.

These men from the Columbus, Ohio, area are the unusual new faces of joblessness in this groundbreaking recession: older men cut loose from employment at the peak of their earning power and work experience.

In previous recessions, veteran workers were largely spared the pain of widespread job cutbacks, according to Bureau of Labor Statistics data. Layoffs tended to be concentrated among younger workers: The younger you were, the more likely you were to get fired. Traditional, bread-winning older males — especially white men — were the least vulnerable.

Not so today. Aging Baby Boomers are suffering a harsh employment bust.

Jobless rates for men and women older than 55 are at their highest level since the Great Depression, government data show. White men over 55 had a record 6.5% unemployment rate in the second quarter, far above the previous post-Depression high of 5.4% in 1983.

Those above 55 also are spending more time than ever between jobs. Older workers spend an average 27 weeks between jobs, about five weeks longer than younger workers.

“When you lose your job after many years, you’re not only looking for a job. You find the nature of employment has changed,” says Deborah Russell, director of workforce issues at AARP, the lobbying group representing people 50 and older.

“People losing jobs are increasingly male and increasingly older.”

The loss of a job for an older worker can erase the dominant income of a middle-class family, wipe out savings as retirement nears and deny aging people health insurance when it’s needed most.

“So many of these men were coasting to retirement, working at good jobs and earning good pay.

“Then, suddenly, it was gone,” says Susan Birie, who runs the government’s Delaware Area Career Center in Delaware, Ohio.

Areas of employment that used to be considered safe are gone or going… never to return.

Our recent International Business & Investing Seminar (IBEZ) in North Carolina explained why this is so.

The industrialization of mankind has moved through five eras each with a new form of power.

Era #1: Water-sail-textiles.
Era #2: Steam-railroad-telegraph.
Era #3: Internal Combustion Engine – Car – Production Line – Petroleum.
Era #4: Jet Engine – Phone – TV – Plastics – Chemicals- Fertilizers.
Era #5: PC – Internet –WWWeb.

In the first stage of each era… markets and the economy boom. New jobs are created. Later in the era, the markets crash… the economy slows and the new wave  in the new era wipes out good jobs from the era past.

The railroad wiped out many safe shipping jobs.

The auto industry wiped out many railroad jobs.

Jet travel eliminated many opportunities originally created by cars.

The internet wipes out many jobs in travel.

These changes bring enormous opportunity for those who adapt. One must invest differently and globally.  This is why half of our IBEZ seminars are about global and why we have a strategic alliance with Jyske Bank to offer a multi currency course.

This is why we also focus half of our IBEZ seminar on how to have a global internet business.

Our goal is to help delegates use the trick so they’ll gain from change.

The trick is what we call JDI… a phrase you have all heard…. Just Do It.

We give our delegates at the course enough basics so they can start a part time internet business.  Then we followed up to get the delegates to get started.

The first week after the course, our delegates received this note from our webmaster, David Cross.

Welcome home.  I hope you had a safe trip back from our North Carolina seminar. It was a pleasure to meet you and share your ideas. We’re going to help you give it wings if you desire using the internet in business.

Let’s get started…

You’ve now got an idea – or an idea of your idea. If you want to bounce your idea of me, please do so.

Let’s begin.

Here’s what to do today – yes, right now!

=====
Step 1: Register your domain name.

http://www.godaddy.com/ is about $10 a year for a .com domain name

Done!

(You can ignore all the additional offers GoDaddy will flood you with.  Just grab your domain).

Look out for another update from me this week. Good business, David

This trick in time of such rapid change is to get started with something small.  Then  learn and evolve.

Our delegates have fun with this as well. Here is one reply David received.

Way ahead of you, David !!!  LOL   But will enjoy receiving your updates ….  My sites have been obtained and are our 2 new ventures. I’ll be focusing on one site first with the import/export of cigars. I already have a name for our newsletter so I can work on getting recognition and good Search Engine hits. I will hopefully be adding other products, such as wine, coffee, chocolate and other “vices” in the near future. Gary, I’m hoping to focus on these additional products coming from Ecuador so any leads would be great.

I was reminded of the importance of taking action by a note sent by a kind reader in Canada that said:

Hi Gary, I’ve been reading Henry Ford’s “My Life and Work,” and this short segment mirrors exactly what you have been saying for years! This might come in handy for one of your daily postings. Cheers!

This segment says:

014
—of—
102
My Life and Work
by Henry Ford

CHAPTER II: WHAT I LEARNED ABOUT BUSINESS (CONT’D)

The automobile business was not on what I would call an honest basis, to say nothing of being, from a manufacturing standpoint, on a scientific basis, but it was no worse than business in general. That was the period, it may be remembered, in which many corporations were being floated and financed.

The bankers, who before then had confined themselves to the railroads, got into industry. My idea was then and still is that if a man did his work well, the price he would get for that work, the profits and all financial matters, would care for themselves and that a business ought to start small and build itself up and out of its earnings.

If there are no earnings then that is a signal to the owner that he is wasting his time and does not belong in that business. I have never found it necessary to change those ideas, but I discovered that this simple formula of doing good work and getting paid for it was supposed to be slow for modern business.

The plan at that time most in favor was to start off with the largest possible capitalization and then sell all the stock and all the bonds that could be sold.

Whatever money happened to be left over after all the stock and bond-selling expenses and promoters, charges and all that, went grudgingly into the foundation of the business.

A good business was not one that did good work and earned a fair profit. A good business was one that would give the opportunity for the floating of a large amount of stocks and bonds at high prices. It was the stocks and bonds, not the work, that mattered. I could not see how a new business or an old business could be expected to be able to charge into its product a great big bond interest and then sell the product at a fair price.

I have never been able to see that.

I have never been able to understand on what theory the original investment of money can be charged against a business. Those men in business who call themselves financiers say that money is “worth” 6 per cent, or 5 per cent, or some other per cent, and that if a business has one hundred thousand dollars invested in it, the man who made the investment is entitled to charge an interest payment on the money, because, if instead of putting that money into the business he had put it into a savings bank or into certain securities, he could have a certain fixed return. Therefore they say that a proper charge against the operating expenses of a business is the interest on this money.  This idea is at the root of many business failures and most service failures.  Money is not worth a particular amount. As money it is not worth anything, for it will do nothing of itself. The only use of money is to buy tools to work with or the product of tools.

Therefore money is worth what it will help you to produce or buy and no more. If a man thinks that his money will earn 5 per cent, or 6 per cent, he ought to place it where he can get that return, but money placed in a business is not a charge on the business–or, rather, should not be.

It ceases to be money and becomes, or should become, an engine of production, and it is therefore worth what it produces–and not a fixed sum according to some scale that has no bearing upon the particular business in which the money has been placed. Any return should come after it has produced, not before.

This reminded me that the best investment… especially in this era where smaller is better… is in our own small business.  We are our greatest asset… but we will earn nothing if we do not act.

Here is what another delegate from our July North Carolina seminar shared.

Gary and Merri…  We truly enjoyed your seminar !!!  Thanks so much for allowing us to come. My brain is still spinning from all of the information and I hope that someday, we will be in the red enough to invest our wealth at Jyske Bank as well. Words cannot express how impressed we both were with the entire presentation. And thank you for sharing your farm with us and the wonderful lunch !!!

This may or may not be your “cup of tea”, but I would love to learn more about how to think BIG, which could maybe be a topic of one of your newsletters. I would value the information and expertise coming from you because you have been so successful. On the way home from your seminar, I thought a lot about how I need to change my thought patterns. I was a single mother of 2 for many years and during those years, I was in survival mode … how to make enough money to raise my kids well and still have enough time to be close to them.

I stumbled into timeshare at the end of the 90’s and was able to fix up my home and become credit card free. But after 5 years and moving up to Director of one of the resorts in Orlando, I left the rat-race of that industry and got back into general Real Estate and built up my print broker business. During  the housing boom, I sold my house and moved to the mountains of NC and continued servicing my printing accounts. That’s when my husband and I opened up his Cigar Shop and my New Age Shop. The Florida housing market crashed and so did my Florida printing clientele. Within the last 2 years, our savings went and up went our debts, like so many of us. Now we’re starting from scratch again !!!

The point: I have always done just enough to “get by” …. I have a difficult time visualizing a bigger picture … a bigger income … bigger wealth … bigger savings … bigger vacations … bigger anything !!!  We are very hard-working but don’t seem to get ahead …. bigger !!!

So if you decide to do a newsletter series on the topic of “thinking BIG”, I think there are a lot of us out there who could use your insight …. hey, this could even make a good “course” subject.  In any case, thanks again, Gary, Merri, David, Thomas and Haskell for your knowledge and inspiration  and I look forward to our continued contact and friendship.  Namaste,

So now we have the answer from one of the biggest thinkers of all Henry Ford.  Become an engine of production and then grow.  Little wonder that ford is the last viable US car maker.

One way to adapt to change is to move to a place where costs are lower…  but living and facilities are good… like Ecuador.

Learn more about our emailed course on how to have an internet business.

We get requests from many planning to retire in Ecuador for information about Ecuador shipping.

Merri and I have never shipped to Ecuador and almost all our readers have found it far less expensive to buy most goods in Ecuador than to ship.

ecuador-banks

For example Ecuador shipping may not make sense for tables.  This hand made dining room set built for us from solid (old) coffee wood ran $420…with 6 chairs.  You cannot beat that with shipping!

I have only had one couple tell me they shipped their goods to Ecuador.  They experienced a lot of problems. The problem was not in Ecuador shipping or Ecuador.  They shipped an entire container and stated they had the DEA in New York tear their stuff apart… break items and leave a big mess.  This is beyond the control of the Ecuador shipper.

ecuador-banks

Appliances are a bit more in Ecuador than in the US… but not enough to warrant Ecuador shipping. A gas stove like this runs between $250 and $380.

Even if we had more Ecuador shipping stories, it would be difficult to give Ecuador shipping recommendations unless we had many shipping referrals because your shipping begins where you are… so much of what you need will be local.

ecuador-banks

A couch set like this can be hand built or purchased “as is” for about $750 for two.

ecuador-banks

Read more about Ecuador shipping here.

So whether you adapt to change in a small or big way… at home in Ecuador or elsewhere abroad… get started. Take baby steps as you think big.

Gary

Join Merri me and Thomas Fischer of JGAM and our webmaster David Cross in North Carolina this October.

Learn more about global investing, how to have an international business and early retirement in Ecuador at the course.

Oct. 9-11 IBEZ North Carolina

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

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
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

Read the entire USA Today article “Older white males hurt more by this recession