Tag Archive | "United Nations;"

Ecuador’s Season


Our belief in Ecuador, as a place to live and invest, comes in part because of its position in the seventh wave of the industrial revolution.

We conducted our International Investing & Business Course last weekend here at the Jefferson Lansing Golf resort clubhouse.

ecuador-season

We reviewed cycles and seasons… how Ecuador opportunity and business in Ecuador really pick up at about this time of the year.  Ecuador’s up season is coming up.

Seasonality is a really important factor of investing to keep in mind… especially right now… as we will see below.

First, in that course we looked at the Asset Allocation of my portfolio and…

Ecuador Property      15%
US Property                46%
Total Real Estate   61%
Equities                           3%
Emerging Bonds            9%
Bonds                             14%
Cash                                13%
Total Liquid              39%

Why I have so little in the stock market now is due to cycles, seasonality and personal values.

Regarding seasonality, October is the bewitching month of  shares.

We viewed how, since the beginning of the Industrial Revolution, the western economy has been moving through fifteen-year upward and downward cycles.  We saw how we are in the tenth year of a potentially 15 year downward wave.

Since the 1800s the stock market has moved in 30 year waves, peaking in bubbles and ending in troughs. Technology, warfare and politics are all related to these cycles. The phrase that coined this great social economic transformation we call the “Industrial Revolution,”  according to historian David Landes, was first in a letter of 1799 written by French envoy Louis-Guillaume Otto.

Since that time mankind has enjoyed ten boom cycles… each created by new technology. Each boom has been followed by a bust… a bear market… a down wave that lasts about 15 years…. for 310 years.

So it is appropriate that in information era up wave  (the dotcom bubble) the Dow topped at 10,336  and then crashed Oct 1, 1999… 300 years after the first revolution began.

Here is a chart of the Dow in that 10th upward period from www.finance.yahoo.com.

ecuador-season

That crash began the current 15 year side ways model that marks the downward cycle.   The peaks and valleys, consistent with the downward wave has slaughtered many investors which, I explained at the course,  is why I have so few equities now.

Seasonality is why I  am not buying equities in October as well.

We viewed how seasonality was at work. Over 30 years the Dow has grown 8.16% overall but all of that growth and more (8.36% per annum average)  has come in the months of November through April. The average annual growth per annum over thirty years in May  to October is only 0.37%.

In other words… October is a volatile month for shares.  In fact the worst days of  the US stock market have been in October.

Black Thursday was October 24th in 1929. During that frenetic day nearly 13 million shares changed hands, nearly four times the norm.  Black Tuesday was October 29, 1929.   The market was slashed again leaving the Dow 40% down in that week.

ecuador-season

Black Monday  was October 19, 1987, global equity markets crashed, starting in Hong Kong. Panic rushed to Europe and then knocked the Dow Jones Industrial Average (DJIA) down 22.61%, its largest one day drop ever.

ecuador season

In short the good equity growth season is about to begin.

Market timing is never more important than the search for value… but it sure can help the search for value.

Seasonality studies give support to the current bear market recovery but suggest the support is best after October.

Plus watch out for a severe October market correction!

Thomas Fischer from Jyske Global Asset Management was with us and pointed out that JGAM’s  low risk portfolios have a very underweight position in equities as well.

During the course we also looked at the importance of personal values in investing by enjoying the process.

We saw some great autumnal beauty…

ecuador-intuition

in the Blue Ridge during the course.  We walked some glorious paths.

ecuador-intuition

Yet this is an El Nino year… a cold winter is predicted.  A long one maybe.

Excerpts from a 19 August 2009 UN New Center article entitled “El Niño weather pattern likely to continue into 2010, explains why: The United Nations agency dealing with weather, climate and water says an El Niño event has begun in the tropical Pacific and is likely to continue into early 2010.

El Niño and La Niña bring significant temperature fluctuations in surface waters of the tropical belt of the Pacific Ocean: an El Niño event sees a rise in temperatures and La Niña witnesses a drop in normal temperatures.

These temperature changes are strongly linked to major climate fluctuations around the world, especially in Latin America, Australia and East Asia, which can last for a whole year or more. Both El Niño and La Niña can disrupt the normal weather patterns and have widespread impacts on climate in many parts of the world.

The UN World Meteorological Organization (WMO) said today that sea-surface temperatures in the eastern equatorial Pacific had risen to between 0.5 and 1 degree Celsius warmer than normal by the end of June, with similar temperatures in July.

“Scientific assessments of these observations indicate that this warming resembles the early stages of an El Niño event,” the Geneva-based agency stated in a news release.

In its most recent update on the subject, WMO stated that the expectation is for El Niño conditions to very likely prevail through the remainder of 2009 and into the first quarter of 2010.

Last year our autumn paths in October turned…

ecuador-season

to this in November.

ecuador-season

Here was the weather report yesterday Oct.14 2009 at Asheweather.comRainy, cold, and raw about sums it up for today. High temperatures for the day were early this morning; We’ll slip into the lower 40s for the rest of the daytime as rather steady rain continues. Watch out for thick, dangerous fog along the Blue Ridge today through much of Thursday. And yeah, we weren’t kidding about that weekend snow shower thing. Gory details below.

Here are some weather statistics for our area that suggest what  happens in Southwest Virginia and Northwest North Carolina (where we are in the Blue Ridge) during an El Nino year.

Roanoke’s snowiest month on record was January 1966, with more than 41 inches. That was during an El Nino.

Roanoke’s coldest winter on record was that of 1977-78, which also had more than 37 inches of snow. That was during an El Nino.

Roanoke got 19 inches of snow on Feb. 10 and 11, 1983. That was during an El Nino.

Roanoke’s snowiest year of the 1950s (1957-58), second snowiest of the 1990s (1992-93) and snowiest of the 2000s (2002-03) each in the 28-to-30-inch range occurred during El Ninos.

Long term patterns in weather or stock markets are no guarantees… but by looking at the odds wouldn’t you rather invest in equities at a time that historically has shown the highest appreciation year after year.   And though snow and cold are not guaranteed up north, wouldn’t you rather have this in the dead of winter (Mt Imbabura) or…

ecuador-season

this?

ecuador-season

Ma, Merri and our friend Steve Hankins at our condos in San Clemente, Ecuador.

This is why we added three more courses and tours in December in our 2009 schedule and will have even more Ecuador courses in January though March 2010.

The remaining 2009 courses are below.

Gary

Join our Ecuador courses and tours October, November or December.

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 all our seminars or tours for any one month, October, November or December, “Tangled Web… How to Have an Internet Business Course,”  “Self Fulfilled- How to be a Self Publisher” and “International Business Made EZ” free.

Head south to Ecuador!

ecuador-hotel

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.

ecuador-hotel

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.

Oct. 21-24 Ecuador Import Export Tour

Oct. 25-26 Imbabura Real Estate Tour

Nov. 9-10 Imbabura Real Estate Tour

Nov. 11-14 Ecuador Coastal Real Estate Tour

December 6-8 Beyond Logic Shamanic Tour

December 9-10 Imbabura Real Estate Tour

December 11-13 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 UN article El Niño weather pattern likely to continue into 2010, says UN agency

Brazil Multi Currency Opportunity


See how my multi currency course subscribers have been able to gain up to 50% in Brazil during 2009.

Many readers at this site know me best as Mr. Ecuador.  However recently some of our subscribers have enjoyed the biggest profits as multi currency investors in Brazil.

Though Merri and I have been investing, living and working in Ecuador for over a dozen years now, our greatest expertise is as multi currency investors as we are in our 41st year.

See below how multi currency investing brought us to Ecuador and how your interest in Ecuador can now bring you a free subscription to our multi currency course as I present a survivors guide to currency and market turmoil.

Those interested in Ecuador do not have to change currencies when they travel here because Ecuador’s currency is the US dollar.

This means they need to learn how to make your money go up as the US dollar and stock markets go up and down…

The US dollar has fallen… badly against major currencies like the yen, euro and Swiss franc for 37 years.  You can see this long term, steady decline of the US dollar in this chart from Grandfather.com.

multi-currency-debt

One reason for this fall is the growing debt in the USA.

Now this debt is even worse. Here is a picture from USA Today that shows how the US public debt  has just grown 12%.

ecuador-tickets

Even minor currencies such as the Colombian peso, and Brazilian real have risen steadily versus the US dollar… 25%, 50% since the early 2000s and more.

Until.. in 2008, the greenback suddenly zoomed up… as stock markets collapsed around the world. Now the dollar is falling again.

Sideways motion like this destroys most investors.

Yet there is a way to earn even in these worst times…by learning how to spot value…that turns turmoil and currency shifts into profit.

This is not just a problem for Americans either. The dollar’s downfall affects currencies all over the world and creates global economic turmoil. For the modern economy to operate in its current fashion some reserve currency is required.

Yet what currency would you choose…the Chinese yuan…the euro…gold, oil? Would you trust your life savings to speculate on that?

Of three things we can be sure.

First, The US dollar will fall more…much more.

Second, there will be confusion. Many…in fact most uninformed investors will lose…a lot.

Third there will be inflation…worldwide due to the excessive spending in the current global financial bailout.

Smart investors who know how to spot value in multi currency portfolios at some of the world’s safest banks have already earned 57%…120% …263% so even with the doom and gloom, they are still ahead.

More important these same investors have learned how to survive through turmoil.

My name is Gary Scott. I have been writing and publishing information about the falling greenback and how to earn from it though international investing for over forty years (since May 1968 to be exact).

Fortunately I stumbled across multi currency investing at an early stage and wrote a book about this clear back in the 1970s when the US dollar was first beginning to erode.

Since that time my books and reports have helped hundreds of thousands of investors find hot areas of value in every decade.

In the 1970s we helped our readers  find investments in gold & silver as well as investments  in the currencies of Japan, Germany, Switzerland, England, Australia and Hong Kong.

In the 1980s, the Tigers, Taiwan, Singapore Malaysia and South Korea, & Turkey were the places where our readers gained value.

The 1990s saw South America (which led me to Ecuador) as the place to invest.

The early 2000s offered great value in China, India and Eastern Europe.

We have helped readers find good value real estate throughout this time, first in Hong Kong, then London, Switzerland,  Isle of Man, Dominican Republic and now Ecuador as well as in Small Town USA.

We have also helped readers bet against the US dollar throughout these decades which as the chart above shows has worked well.

Finally in the early 200os we began helping readers find good value green investments.

I would like to offer you a valuable real time emailed course that teaches how to invest in multi currency portfolios plus how to sometimes use leverage in these portfolios to create extra profits.

Sleepy Safe Portfolios Can Earn Over 100% Per Year

Multi currency investing does not require any fast trading techniques.  Multi currency portfolios are normally slow and sleepy investments…not currency contracts or futures speculations.  Most multi currency positions are aimed with a five year horizon…pretty sleepy compared to people who trade currencies (an entirely different and far riskier technique).  For most of us, slow and sleepy means SAFE!

Yet multi currency portfolios can be really profitable as well.

How sleepy and how safe?

Let’s look first at sleepy.

In 2006 we created an Asian multi currency portfolio consisting of just five award winning mutual funds.

We did not touch the entire portfolio for an entire year. Then after one year we made just five changes…dropping two mutual funds and adding three other mutual funds. Then we did not make another single change. That’s pretty sleepy, choosing a handful of mutual funds and making only five changes in two years.

How safe?

The portfolio was chosen with the help of one of the world’s safest banks and the mutual funds were held at that bank at all times.

Okay. Here is the big question. How profitable?

In the first year (2006) this portfolio rose 114.16%. Then we made the five changes mentioned (two funds dropped and three added). In 2007 this portfolio rose 122.62%. 2008 was a disaster year which we will look at in a moment.  But when your portfolio is over 200% in two years, it takes a lot of disaster to lose.

Suppose we get more specific.

That safe bank is a Danish bank. That’s good because in recent years Denmark has been rated by Standard & Poor’s as one of the safest country in the world in which to bank

The bank is Jyske Bank…well established with a history of over 100 years. Jyske is Denmark ’s second largest bank, with 450,000 clients in Denmark and over 30,000 abroad.

Jyske Bank has over 23 billion euros in assets and also happens to be one of the leading currency traders in the world. The Danes have always been big currency traders because as a small naval country surrounded by England, Sweden, Finland, Russia, Germany, Norway and other countries…they have always had to deal in many currencies.

This historically gained expertise means that unlike most banks (that trade only eight hours a day) Jyske maintains a 24 hour global currency and commodity dealer service. Many other large banks use Jyske to handle their off hour currency positions. This means that Jyske is huge when it comes to multi currency activity. In fact their turnover reaches $50 billion dollars a day.

Let’s address this issue of safety in more detail. Normally this is a pretty moot point. Right now everyone is concerned. Is a bank safe or not? I like Jyske from a bank safety point of view because there are three bank safety points, from the top down.

Bank Safety Point #1: A recent Yahoo Canada article shows a survey by the World Economic Forum listed five safest countries in which to bank.

Canada
Sweden
Luxembourg
Australia
Denmark

So Denmark is a safe place to bank. Now let’s look at Jyske Bank’s safety rating.

Bank Safety Point #2: Jyske Bank is Denmark’s second largest bank.
On October 10 2008, Moody’s affirmed Jyske Bank’s long-term Aa2 rating stable rating. This decision came despite the deteriorated economic prospects in Denmark, particularly in respect of the property market.

Bank Safety Point #3: Also on Friday 10 October 2008, the Danish Parliament passed a bill that secured all deposits and unsecured claims against losses in Danish financial institutions.
The rating of the Kingdom of Denmark is Aaa/AAA with Moody’s and Standard & Poor’s respectively.

That’s safe!

I happen to know Jyske Bank because I began using them (as my bank) over 20 years ago. They are one of the few banks that offers a special multi currency portfolio service for investors from almost anywhere in the world.

I was one of the first writers and publishers to begin writing about multi currency investing. Jyske bank was one of the first banks to offer a multi currency portfolio service…and they were my bank.

Not surprising we got together and have created a strategic alliance that can help you learn how to create multi currency portfolios that suit you.

My multi currency course helps readers learn how to find good value and develop multi currency portfolios that suit their specific circumstances.

Before I explain how you can use this course, let’s look at both the up and down side of these high performing portfolios?

The course provides two levels of education. Part one gives readers an extensive beginner’s guide to developing multi currency portfolios.

Part two is unusual and neat.  Part two educates in real time. We create multi currency portfolios and track them real time.  The education comes from dissecting and discussing the portfolio results.  This is a totally novel way to learn…real time from real portfolios created by some of the best investment managers in the world as these portfolios rise or fall in the market place…in the here and now.

Jyske Bank assists by providing all the portfolio details.   Our symbiotic relationship allows me to combine my experience with this bank’s incredible knowledge, real time capability and expertise so course subscribers can learn in a most practical way from some of the greatest multi currency experts in the world.

Here is our educational performance over the past few years.

We created five portfolios for educational purposes on November 1, 2005. One of the five multi currency portfolios was the Asian Emerging Multi Currency Portfolio. The portfolio started with a $100,000 investment and a $200,000 loan in Japanese yen (more on the loans in a moment).

This gave us $300,000 to invest in this portfolio.

Amount

Currency

Investment

75,000

Rupee

Jyske Invest Indian Equity Mutual Fund

75,000

Yuan

Jyske Invest Chinese Equity Mutual Fund

75,000

Yen

Jyske Invest Japanese Equity Mutual Fund

75,000

Multiple

Jyske Invest Emerging Market Bond Fund

Investments Total Value 300,000.00

Invested $100,000

Loan $200,000 100.00% JPY at 1.63%

Loan cost for one year $3,260.

This portfolio diversified into bonds and equities throughout Asia ..very multi currency.

Chinese yuan, Indian rupee, Japanese yen and more.

Twelve months later the portfolio was worth $417,420. Paying off the loan cost $203,260 leaving $214,160 or $114,160 (114.16% profit) on the $100,000 originally invested.

On November 1, 2006 we made the five changes mentioned above. We dropped the Japanese equities and emerging market bond mutual funds and added an Eastern European, Far Eastern and Turkey equity mutual funds. This is how the rearranged portfolio stood.

Amount

Currency

Investment

75,000

Rupee

Jyske Invest Indian Equity Mutual Fund

75,000

Yuan

Jyske Invest Chinese Equity Mutual Fund

75,000

EUR

Jyske Invest Eastern European Equities

50,000

Asian

Jyske Invest Far Eastern Equities

25,000

Lira

Jyske Invest Turkish Equities

Investments Total Value 300,000.00

Invested $100,000

Loan $200,000 100.00% Czech Koruna at 3.875%

Loan cost for one year $7,750.

As promised this portfolio only had five changes. We swapped the Japanese equity fund for a Eastern European equity fund and dropped the bond fund replacing it with a Far Eastern and Turkey equity fund.

May I, at this point, interject a note about Jyske Invest fund managers. They are a Danish firm and are the investment management affiliate of Jyske Bank. This rock solid organization uses a good value system have been rated #1 by Morningstar. They use this value system to select shares in their mutual funds and we place these funds in our multi currency portfolios because they are strictly regulated by the Danish government and have such an excellent record…because they focus on finding value, not market timing.

So how did this new updated portfolio do? From November 1, 2006 to October 31, 2007 the fund rose in value from $300,000 to $430,370. The loan payoff of $207,750 leaves a profit of $222,620 or a rise of 122.62%.

There you have it, a safe sleepy portfolio created at and held in one of the world’s safest banks. With only three trades in two years the performance has been up 114.16% in year one and up 122.62% in year two.

I am sure that when looking at performance like that you are thinking “how did the other portfolios do?” Good question and your suspicions are correct…some of the other portfolios did not rise this much.

Yet believe it or not some portfolios did even better.

For example the 2007 Green Portfolio consisted of six shares and rose 266.30%!

Here is the exact performance of all five portfolios for the last two years.

2006 Portfolio

US Dollar Long

9.04%

US Dollar Short

10.43%

US Dollar Hedge

11.46%

Emerging Market

42.93%

Asia Emerging Market

114.16%

2007 Portfolios

Dollar Neutral

38.67%

Dollar Short

48.19%

Swiss Samba

53.32%

Asia Emerging Market

122.62%

Green

266.30%

You can imagine with performance like this attracted quite a bit of attention…and it did.  However these high returns are not the important benefit you gain with our multi currency course.

Our course does not recommend nor manage portfolios.  We did not suggest that any single reader invest in any of these portfolios. The portfolios are educational and designed to help readers work with their own investment manager to create their own multi currency portfolio that suits their own special, individual needs.

Our multi currency investment course helps readers learn how to manage their manager… nothing more.

Yet this is incredibly valuable because Jyske Bank can provide a stable and safe institution for those who wish to employ a multi currency strategy.

The course helps guide readers so they can direct any investment adviser or investment manager who understands how to invest in more than one currency.

The course also helps you manage risk. The incredible portfolio performance above was achieved because the portfolios were leveraged using a tactic we call a multi currency sandwich. Investors borrow low and invest in yielding or growth portfolios. The portfolios used loans in Japanese yen and Swiss francs to magnify profits in good times.

The course teaches how these loans can magnify losses in bad times as well.

For example look at the performance of the leveraged portfolios we created to study from November 2007 through September 2008.

2008 Portfolios

Infrastructure Portfolio

-112%

Blue Chip Portfolio

-79%

Danish Health Portfolio

-92%

Asia Emerging Market

-73%

Green

-56%

Leverage in 2008 caused the portfolios to lose badly…in one instance the total portfolio was lost!

The multi currency course is useful because it helps investors not to expect rising markets all the time.

The power of studying markets real time, as they unfold, wards off false expectations.

The course helps subscribers learn how to look ahead and act rather that react (after the fact when it is too late).

The sad fact is…we all have to become multi currency investors.  Trusting your fate to any one currency now can destroy your purchasing power.    Every investor needs to know what to do!

The course helps spot when to leverage good times and when to retract for the bad.  he idea is to cash in when the going is good and then withdraw.

For example in early August 2007…well before the market crash….our study of the market began to show increased risk.  Our first warning lesson said:  “We have enjoyed two years of enormous growth.  Periods of high growth are normally followed by periods of low growth.”

August 17, 2007 a lesson said: “The numbers are close enough that we could be entering the fourth sub cycle down (similar to 1976 to 1978). If so expect a sustained drop in markets for two to three years.”

On September 21, 2007, a lesson said: “equity markets dropped again violently last month. Now these markets have recovered again. Yet this may be a last gasp party.”

An October 14, 2007 lesson stated:  “We never know for sure when an upwards cycle will stall. Fundamentals look good for a bright 2008 in emerging and equity markets, but this can change quickly so to give our readers a better perspective, this year we are reducing leverage and adding a sixth portfolio with no leverage to study”.

The October 15, 2007 lesson reviewed how leveraged investments rise and fell faster than investments without leverage.

The lesson on Oct 26, 2007  saved many investors as it was entitled Leveraged Investments Gone.  Just before markets started to head south this lesson warned: “I have had only about 10% of my portfolio leveraged. Compare this to 200% for the Green Portfolio (which is up 265% this year). Now I have none.

So a lot of my portfolio investments are basically in a multi currency portfolio of bonds…mostly in pounds, Swedish and Danish kroner. The equities I hold are mainly in Europe and I do not leverage equities…especially after markets have risen so much. Periods of high returns are normally followed by periods of low returns. These facts, plus my belief that numerous economic woes are rising and my recollection of Oct 1987 leave me wanting to reduce risk in my equity portfolio. So now I have eliminated all my leverage.”

The next lesson warned again: “Okay it’s time to turn the burner down.”

A November 8, 2007 Black Friday lesson reviewed  all the warnings above again and more.

The course also helps readers find ways to spot unusual distortions that profit even in bad times.

For example  lessons  on April 18 and April 27 2009 looked at the benefit of investing in Brazilian currency bonds.

This lesson led to a quick profit.

Here is an excerpt from our June 12, 2009 lesson:

Based on these ideas and those presented in the April 18 and April 27 lessons we looked at why Brazilian bonds made good sense in the LONG TERM.

Sometimes we get lucky though in the short term… as we have now.

Brazilian bonds have made a sudden jump up!   Those who have invested in them have made as much as 50% (in US dollar terms) this year.

Yet the distortion we’ll review below shows how there is even more dollar denominated profit potential ahead.

Last week the Brazilian central bank lowered key interest rates to 9.25%.  This will likely send the price of  Brazilian real denominated bonds up.

The central bank has stated that there could be more rate cuts, but they will be smaller.

This is positive news plus Brazilian inflation has declined to 5.2% from 5.53% in April 2009.

When you take into account the high interest of the real, the rise in value of bonds and the rise of the real you can see the potential.

Brazilian real bonds have risen nearly 30% since the beginning of the year…  in terms of Euro!

This is where there is another huge distortion.  The real has not risen anywhere near this much versus the dollar.

The charts from finance.yahoo.com below show the distortion.

In the last three months the US dollar has dropped from $1 = 2.30 BRL to $1 = $1.97 (- 14.3%) versus the Brazilian real as this chart shows.

brazil-distortion

In the last three months the euro has dropped from 1 euro = 3.05BRL to 1 euro = 2.60 BRL (-13.5%).   This correlation of the euro and dollar would seem normal except…

brazil-distortion

as the chart below shows, the euro has risen from $1 euro = $1.28 to 1 euro =$1.40 a 9.27% rise versus the US dollar.

brazil-distortion

In addition the Brazilian central bank has had to intervene several times in recent months to avoid the Brazilian real being too strong against the euro.

Traditionally the real has had a strong correlation with the dollar but the recent weakening of the buck versus the dollar has not spilled over into the Brazilian real.

In other words. The real is up against the euro almost 10% more than against the dollar.  This is called a cross rate distortion and means that one of two things is likely to happen.  The dollar will rise versus the euro or  the dollar will fall versus the Brazilian real.

Given the fundamental US fiscal weaknesses that could push the dollar down, I am bullish on the real rising more versus the dollar and this makes me bullish about Brazilian real denominated bonds.

Always remember the basic rule though is to never speculate more than you can afford to lose.   A US dollar – Brazilian real sandwich is worth discussing with your portfolio manager or adviser now but could creates losses as well as profits.

I have not leveraged my Brazilian bond investment. Based on this data I instructed JGAM to increase me Brazilian bond holdings.

If you are using Jyske Bank, and are a non US citizen or resident, or a US citizen living abroad, you can simply have the bank purchase Brazilian bonds and lend you the funds (within the bank’s loan to asset restrictions).   Non US citizens contact Rene Mathys for more details at mathys@jbpb.dk

US citizens should contact Thomas Fischer at fischer@jgam.com

If you are a US citizen resident in the US and have an advisory account with JGAM, they may not be able to buy Brazilian bonds for you.  They could  buy the US traded ETF “The WisdomTree Dreyfus Brazilian Real Fund.” (BZF)

These three lessons (April and June 2009) helped many readers cash in on an unusual value!

I would like to invite you to enroll in our multi currency investment course and to also receive a nine lesson report that covers basics and fundamentals of  multi currency investing.

This nine lesson report has been read by tens of thousands of investors over the years.   This report sells on its own as a survivor’s hand guide to currency turmoil for $79.  I’ll email it to you free when you enroll in our online course.

The course is emailed to you regularly and studies stock, bond and currency markets worldwide, real time, as they unfold.

I believe, from the response of tens of thousands of readers over the last 20 years, that you will gain enormously from the course.

Our course helps you learn  why and where to invest and learn why and how currencies and interest rates rise and or fall.

The initial nine lesson report I’ll email you free also shows how to calculate and manage leveraged risk and how to decide if and when to leverage or not.

Is this course for you?

Everyone needs to know how to have multi currency diversification. But in case this course does not help you, we provide a 30 day “completely satisfied or your money back” guarantee that we have offered our hundreds of thousands of readers for more than 20 years.

Our Multi Currency Educational Service is a mere $175 for a very long and educational year! Won’t you share this exciting world of wealth accumulation with us and our readers around the world? Multi Currency Educational Service

Gary Scott

Multi Currency Portfolios Course. Subscribe

Or enjoy this multi currency course for a year free!  Here is how you can save $175.

We enhance our emailed courses with regular international investing and business seminars that I conduct in coordination with Jyske Bank and Jyske Global Asset Management.

Here I am at our last seminar in Naples Florida (may 2009).

multi-currency-debt

The speakers at the Naples seminar discussed prospects for the economic future.  Left to right: Samuel Rachlin,  Rich Checkan, Steve Blumenthal, Joe Cox, John Mauldin, Gary Scott, Lars Stouge. Thomas Fischer Moderating.

The 115 delegates reported that they really gained from listening to what we had to say and…

brazilian-bond-distortion

talking among themselves during the coffee brakes and at meals.

brazilian-bond-distortion

One benefit of these seminars is talking to an overseas banker.  Here I am at the Naples  seminar  with my Jyske account executive Anders Nielsen.

brazilian-bond-distortion

Thomas Fischer of Jyske Global Asset Management will join us for the July North Carolina seminar.

I invite you to attend this July course. If you enroll between now and July 1st, I’ll also enroll you in  our emailed multi currency course free. You save $175.

Enroll in our July 24-26 International Investing and Business Made EZ course here

Here is Thomas speaking to our delegates at a previous course.

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Enroll in our emailed Multi Currency Portfolios Course for $175  here.  Subscribe

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Here is what a few others from around the world have said about our services and reports on international investing.

“ Gary , I am a long time subscriber in various media, and while cleaning out my files today I found some old ‘Gary A. Scotts World Reports’. In particular, the April 1988 issue provided the info that made me over a million dollars. Just wanted to say a belated ‘thank you’ and please continue the excellent work. Warm regards,”

From an Unknown Reader

“Dear Gary, I would like to give thanks to you for introducing me to Jyske Bank two years ago.

“I have been a long-time client of Merrill Lynch, but am in the process of re-evaluating my relationship with the largest brokerage company in the world. My problem is that when I compare Merrill to Jyske, Jyske outshines Merrill (or other major U.S. brokerage firms) in most categories as follows:

“1) Even though Jyske is much smaller, it has a much more global perspective which is critical in an evermore global investment environment.

“2) In order to maximize their own individual revenue, the brokers at Merrill prefer to outsource the day-to-day management of their accounts to various fund managers and hence, ‘manage the managers’. In contrast, I can call my Account Manager at Jyske and he can discuss every aspect of my account in detail with me.

“3) I attribute this difference in #2 to the fact that Jyske’s employees are not compensation driven, but instead are focused on satisfying their customers. That is why Jyske’s clients stay with the Bank on average for 12 years, which is phenomenal by Wall Street standards.

“4) Jyske’s security is far more stringent than that of Merrill’s. In addition to the standard account code and password, to pass through Jyske’s security one has to enter a Key Card number and also a randomly-generated 4-digit number from said Key Card.

“5) Having an account offshore allows me to sleep better given the anxious times we live in. Since I report the existence of the account and pay all taxes due, I am fully compliant with the law. However, such an account gives me and my family a ‘financial life boat’ should events in our own country ever get out of hand.

“As Dorothy Parker once said, ‘You can lead a horse to water, but you can’t make them THINK’. Jyske is a thinking person’s bank. My only complaint is the time zone difference since I live in California . However, since I am an early riser and my Account Manager is very responsive to my emails, this problem is very small relative to the HUGE benefits.

“Again, many thanks for introducing me to Jyske Bank. Given the ‘dumbing down’ that occurs in the popular media today, your ezine and its recommendations are ever more important. Please continue your good work to enlighten your readership.

“Warm regards,”

C.M. CALIFORNIA Businessman

“I was so overwhelmed with information I received I had to spend several days reading, sorting and filing it! I have decided to move my modest investment capital overseas.”

B.W. MONTREAL CANADA Professor

“Send me your report on safe banks lending at 7% for redeposit at 13% or more.” B.V. ADDIS ABADA ETHIOPIA Economic Commission United Nations

“A number of new and significant contacts were made. It would be extremely helpful if you could supply us with WORLD REPORTS.” I.M. TORONTO , CANADA Banker

“You are as good as your word which is rare these days. I look forward to attending one of your seminars.” C.K. GENEVA , SWITZERLAND Banker

“In spite of my marketing experience, your information really got me going!” M. C. LONDON, ENGLAND Marketing Consultant

“Thanks for the three reports. They are very interesting and should find many readers here in Japan .” M.A. Tokyo , JAPAN Computer Programmer

“I would like to say how much I enjoyed the information I received.” A.B. Providenciales TURKS & CAICOS Accountant

“First let me say how much we enjoyed the investment seminar.” W.J. SAUDI ARABIA Oil Engineer

“Once again thanks for all the great information.” G.K. PERTH , AUSTRALIA Insurance Executive

“Your letter of November 8th warned me to beware of the market just a week before the 120 point crash on November 15th!” T.G. N. CAROLINA Pilot”

Won’t you join us as we learn from our Multi Currency Educational Service? Just a mere $175 for a full 12 months of valuable, wealth building education.

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Ecuador Risk


Ecuador has risks.

As does everywhere.  In fact our world has more risk then ever before.

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Are quiet Ecuador streets like this Cotacachi avenue at risk?

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The young Ecuadorian children who go to school early, alone don’t seem to feel much risk.  Yet?

Change creates risk and we live in an era of increasingly rapid change.

Those who welcome this fact are those who have the best chance of success. ahead.

This is the era of rapid change… the era of  extra risk.  The current time period within this era is of accelerated change and risk.

This is an important message about how to manage risk in Ecuador or anywhere.

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Even young children play alone in the Cotacachi Ecuador streets without much risk

Yet we must always take care.

Take for example the US travel advisory for Ecuador… read  without perspective. Ecuador risk would seem high.

Here are excerpts from the US travel advisory for Ecuador:

SAFETY AND SECURITY: The U.S. Embassy in Quito advises caution when traveling to the northern border region of Ecuador, to include areas in the provinces of Sucumbios, Orellana and Carchi, northern Esmeraldas, and southern Esmeraldas, south of Atacames.  U.S. government personnel are under limitations with respect to traveling alone and over-nighting in these areas due to the spread of organized crime, drug trafficking, small arms trafficking, and incursions by various Colombian terrorist organizations.

CRIME:  Crime is a serious problem in Ecuador, and visitors should be alert and cautious.  Non-violent crime is common: hundreds of Americans are robbed every year in Ecuador.   Incidents of rape have increased, even in well-traveled tourists areas and when the victims traveled in groups for safety. Shootings, kidnappings, and carjackings are still relatively rare, but American citizens have been victimized by those crimes.  The Ecuadorian government has increased police patrols in tourist areas, but travelers should remain alert to their surroundings and maintain constant control of personal belongings.

Criminals sometimes use incapacitating drugs such as scopolamine on unsuspecting tourists in order to rob them.  These so-called date rape drugs are put into drinks in order to drug the unsuspecting victim.  This drug can render the victim disoriented and can cause prolonged unconsciousness and serious medical problems.  Never allow a stranger to “buy” you a drink and never leave your drink unattended.  Several American citizens have reported thefts of property following ingestion of such substances.

Does Ecuador sound risky?

Ecuador sounds risky until you read the travel advisory for Italy.  Here are excerpts from the US travel advisory for Italy:

Some travelers are victims of rape and beatings.  There are incidents of drinks laced with drugs being used by criminals to rob, and in some cases, assault tourists.  Many of these incidents occur in the vicinity of Rome’s Termini train station and at major tourist centers such as Campo de Fiori and Piazza Navona, as well as in Florence and Naples.  Criminals using this tactic “befriend” a traveler at a train station, bus stop, restaurant, café or bar in tourist areas, then eventually offer a drink laced with a sleeping drug.  When the tourist falls asleep, criminals steal the traveler’s valuables.  There are also instances where the victim is assaulted, either physically or sexually.

Petty crimes such as pick-pocketing, theft from parked cars, and purse snatching are serious problems, especially in large cities.  Clients of Internet cafes in major cities are also targeted.  Tourists who have tried to resist petty thieves on motor scooters have suffered broken arms and collarbones.

The U.S. Secret Service in Rome is assisting Italian Law Enforcement authorities in investigating an increase in the appearance of ATM skimming devices.

Organized criminal groups operate throughout Italy, but are more prevalent in the south.  They occasionally resort to violence to intimidate or to settle disputes.

Italy could seem risky as well until you read the travel advisory for Spain .  Here are excerpts from the US travel advisory for Spain.

SAFETY AND SECURITY:     Spain and Andorra share with the rest of the world an increased threat of international terrorist incidents.  Like other countries in the Schengen area, Spain’s open borders with its Western European neighbors allow the possibility of terrorist groups entering and exiting the country with anonymity.  Spain’s proximity to North Africa makes it vulnerable to attack from Al Qaeda terrorists in the Maghreb region.  Americans are reminded to remain vigilant with regard to their personal security and to exercise caution.

In the deadliest terrorist attack in recent European history, in March 2004, Islamist extremists bombed four commuter trains entering Madrid, causing 191 deaths and over 1,400 injuries.  Spanish authorities tried the suspected terrorists and their co-conspirators in February 2007 and convicted in October 2007.

The Basque Fatherland and Liberty (ETA) terrorist organization remains active in Spain.  ETA has historically avoided targeting foreigners, directing their attacks against the police, military, local politicians, and Spanish government targets as well as attempts to disrupt transportation and daily life. However, foreigners have been killed or injured collaterally in ETA attacks.  Two examples of this are the Barajas Airport bombing in December 2006, in which two Ecuadorian nationals were killed and the bombing at the University of Navarre in October 2008, in which 17 students were injured including one American student.  In addition, bombs have been used as part of criminal extortion of businesses, particularly in the Basque region. The risk of “being in the wrong place at the wrong time” in event of an ETA action is a concern for foreign visitors and tourists.  U.S. tourists traveling to Spain should remain vigilant, exercise caution, monitor local developments, and avoid demonstrations and other potentially violent situations.

Street crimes against tourists occur in the principal tourist areas.  Madrid and Barcelona, in particular, report incidents of pick-pocketing, mugging and occasional violent attacks, some of which require the victim to seek medical attention.  Although crimes occur at all times of day and night and to people of all ages, older tourists and Asian Americans seem to be particularly at risk.  Criminals frequent tourist areas and major attractions such as museums, monuments, restaurants, outdoor cafes, Internet cafes, hotel lobbies, beach resorts, city buses, subways, trains, train stations, airports, and ATMs.

Thieves often work in teams of two or more people.  In many cases, one person distracts a victim while the accomplices perform the robbery.   Spanish authorities warn of the availability of so-called “date-rape” drugs and other drugs, including “GBH” and liquid ecstasy.  Americans should not lower their personal security awareness because they are on vacation.

We could go on… in Europe…  in Asia… or anywhere.

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Parents in Cotacachi Ecuador do not feel much risk when they let their children play in the parks.

Mostly, places are not the cause of risk.  The causes of risk  are within,  our awareness, our actions, our  patterns and habits.

If one becomes aware of change and adapts accordingly… there is no risk.  There is opportunity instead.

Early adapters are called risk takers.   They are not.

Real risk takers are those who do not  adapt because…  we know…  there is change.

The real risk is living by OLD rules in a NEW world.

The real risk is believing in General Motors for example… because it is the biggest… oldest… so it must be safest.

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Young lovers in Ecuador can meet safely in out of the way places.

The world is new every day and each day, some old rule no longer works.

The old rules used to say that the Western world was safe… and the emerging world riskier.   The old rules said that the Western world had low crime…  the emerging world had high crime.

Yet look at excerpts of a recent New York Times article entitled “Prison Spending Outpaces All but Medicaid” by Solomon Moore (See a link to the entire article below) says:

One in every 31 adults, or 7.3 million Americans, is in prison, on parole or probation, at a cost to the states of $47 billion in 2008, according to a new study.

Criminal correction spending is outpacing budget growth in education, transportation and public assistance, based on state and federal data. Only Medicaid spending grew faster than state corrections spending, which quadrupled in the past two decades, according to the report Monday by the Pew Center on the States, the first breakdown of spending in confinement and supervision in the past seven years.

This suggests that the US has quite a lot of risk… both in crime and health.

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Ecuador people are by nature, caring, friendly and warm.

Sometimes I get letters like the one below from readers who have been victims of crime in Ecuador.  This reader lost her computer and camera when she forgot them in the business lounge at the Radisson hotel in Quito.

Dear Gary,  Can you believe, the Quito police, working with the Radisson hotel, found my  briefcase with the computer and other small items and had them sent by Federal Express to me.  I had provided them with the receipts of all the items stolen, for the items they were not able to send me  (camera and cellular phone) I was reimbursed via bank transfer. I still can’t believe it.  This was a good ending and so unexpected.  send you all love, and good thoughts. Laura

New rules about risk are being written every day and our daughter Francesca shared some thoughts on this when she recently visited us here.

Fran is quite a traveler.  Here early studies were in England… Gloucestershire and Birmingham.  Then she spent more for more than a year in Spain and Costa Rica, and moved to Naples and Delray, Florida which were bases for her to  manage real estate tours in Argentina, Belize, Chile, Ecuador and Uruguay.

She worked for several years doing human rights training in Geneva, Switzerland before returning to get her Masters degree at London School of Economics.

Then  she worked in London for the Crown Agents where she was assigned
as a project manager and consultant to governments in Nigeria,  Peru, Sierra Leone and South Africa.

She has worked the last several years  as a development planning, monitoring & evaluation consultant in Swaziland and is returning there now on a contract with the United Nations.

As a young, single woman (now married) she has had to be aware of risks traveling everywhere from Florida to London to Lagos.

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Here I am with Francesca on her wedding day.

Fran & Sam rode to their reception in Richmond Park on a bicycle built for tow.

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Riding a bike through London traffic… now that is risky!

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Here are some common sense thoughts that Francesca shares about living with risk.

Living with Risk by Francesca Scott

We’re living in risky times; from the economic collapse, to swine flu, to erratic weather conditions.  It sometimes surprises me when people ask me if I’m not worried about living in Swaziland (my current home), because, they say, Africa is such a dangerous place.  I figure that when I return to London, my risk of being attacked in a terrorist attack skyrockets.  And I am still dumbfounded by the fact that children are screened for guns at schools in the United States.  By the way in England for the first time screening for knives has begun in some inner-city London schools.

The issue of risk came to mind recently, when I was visiting my Grandma. One evening over dinner, the discussion turned to the security situation in Swaziland, and I mused that in certain ways I feel safer in Swaziland than I do in parts of London. My Grandma commented that gangs were increasingly becoming a problem in Portland, her home city, and that she didn’t feel that safe these days.  The next day, as we stopped at the local bank, I was surprised by the thick wall of bullet proof glass completely separating the staff from the general public. They don’t have that in banks in London, or in Mbabane, Swaziland’s capital city.

I began thinking about how easily we adapt to different risks within our local environments. In many countries, one would be crazy not to have bars on lower windows. In central London, I hold my bag very close to my chest – I value my purse and cell phone too much. My mother-in-law, who lives in Australia, actually leaves her keys in her car when she stops at a store to pick up groceries (gasp!).  Sadly, I doubt that will last for much longer.   So does my Dad in NC.  They have a policy on the farm that all keys remain in all vehicles…just in case someone needs to jump in one!

Each country has a different risk profile, from pick-pockets, to pollution, to drug barons.  I am not saying that Swaziland does not have its dangers – my house has been broken into several times, and I drive much more defensively than I would in the US or the UK (mostly to avoid wayward cows that have drifted onto the road).  The important thing is to be fully informed about the risks.  This might sound obvious, but sometimes people are scared off by unfamiliar risks or misinformation.

It’s also worth remembering that there are often a variety of ways to mitigate those risks through effective prevention methods, so long as you know the rules. Most of us are guilty of exposing ourselves to unnecessary risk as a result of ignorance at one time or other, and are lucky that we’ve lived to tell the tell. I was threatened at knife point by a drug addict in a park in Spain, when I lived there as a student.  When I recounted my story to my Spanish roommate, she told me that I was a fool to be in that park in the first place, ‘…didn’t you know that it’s the favorite haunt for heroine addicts in the city?’  Well, no, obviously I didn’t know at that time, but it was a valuable lesson for me about the importance of knowing the rules.

I must admit to being a little scared before I went to Swaziland.  After all, it’s in one of the poorest parts of the world, and only three hours drive from Johannesburg, a gang-ridden, violent city. I also couldn’t shake off all those awful images of Africa I’ve seen on the evening news. I told myself that I would try it out for six months (I figured I could survive for that length of time in an underground bunker living off tinned corned beef and bottled water if it was that bad), and make a decision from there about whether or not it was for me. Two-and-a-half years later, I still thoroughly enjoy living here and am very glad that I resisted my initial anxieties.

For those considering buying property, or even moving to Ecuador, or any other country – developed, developing or downright poverty stricken for that matter – I would recommend to take the time to become fully informed about the types of risks you might face.  You can find out a lot from the internet and books, but it would be a shame to be scared off by some of what you read or by the well intentioned comments of a neighbor who hasn’t ever lived away from their home town.

Everyone comes from a different starting point, and everyone has a different risk threshold.

Also, the dramatic stories tend to be more interesting to tell.  While reading around can certainly offer you a variety of different and valuable viewpoints, it’s also important to talk to people who have lived in the country. Locals can be an invaluable source of information, while ex-pats may be more appreciative of the kinds of risks unanticipated by a foreigner, risks that may seem glaringly obvious to a local. Also, find out what you can do to mitigate those risks. Often you can reduce your exposure significantly using the appropriate precautions. If you think that the benefits outweigh those risks, then go down and check out the country for yourself.  That’s the only way you can really know if the level of risk is one that you could tolerate.

It might be that the risks are in some countries and in some places, in fact, just too high, pushing you beyond your comfort zone, or that the restrictions necessary to reduce your risks would make you feel stressed and claustrophobic. It’s no fun lying restless at night at night because you’re worried over a break-in, even though you have an alarm, or resent the lack of privacy from having a guard permanently outside your house. If you’re looking for the exact replica of your own community, with the same level of risk, and a Starbucks around the corner thank you very much, then somewhere like an emerging country really may not be for you. There will inevitably be new and different risks in poorer countries, some to which you, as a foreigner, could be at much higher risk than a local.

But take a moment to reflect on the risks that you face in your daily environment back home, and you might find that such risks are relative. While some risks will be new when you move abroad, you will also leave some behind. Therefore, before making any decision of moving to a country other than your own, I recommend making sure that you are informed by the reality on the ground, not some misconception fed by the media or well-intentioned homebodies. Only with that information can you gauge whether you’ll be comfortable with the type and level of risk you might face. For an adventurous soul, you may well find that the benefits of living in a new culture, the fun of exploring a foreign terrain, make everything worthwhile.

Risk assessment is a vital part of survival and success in today’s world.

This has always been true so always consider risk… but when you evaluate danger… don’t  just look at the places where you will be.   Review your thinking, your habits and patterns to see how you can turn risk into opportunity.

Gary

Join us here at our hotel Meson de las Flores.  Learn more turning risk into opportunity at our courses and tours.

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June 12-14 Shamanic Mingo Tour

June 16-17 Imbabura Real Estate Tour

June 18-21 Ecuador Coastal Real Estate Tour

July 4-8  Ecuador Export Tour

July 8-9 Imbabura Real Estate Tour

July 10-13 Ecuador Coastal Real Estate Tour

July 24-26 IBEZ North Carolina

Sept. 17-21 Ecuador Spanish Course

Sept. 23-24 Imbabura Real Estate Tour

Sept. 25-28 Ecuador Coastal Real Estate Tour

Oct. 9-11 IBEZ North Carolina

Oct. 21-24 Ecuador Import Export Expedition

Nov. 6-8 IBEZ Ecuador

Nov. 9-10 Imbabura Real Estate Tour

Nov. 11-14 Ecuador Coastal Real Estate Tour

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

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

See the entire article Prison Spending Outpaces All but Medicaid at http://www.nytimes.com/2009/03/03/us/03prison.html

Ecuador Shots & Global Comments


Here are some shots of Ecuador and comments from readers about our recent Ecuador Joys & Global Thoughts article.

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Here is a photo taken of a proud Ecuadorian cheese maker.  Our next Imbabura real estate tour will view this organic farm and Swiss cheese factory for sale.

The first reader wrote:

Gary, A fine letter from a daughter that has learned some important things about life at an early age.  Of my three summers in Mexico(1965-70) working on a Peace Corp style project in 18th century mountain life, from those rural  Mexicans I learned what it meant to be an American. Before Mexico I had no context  about the values and way of life that I was living.  I presumed the world thought and lived more or less like we lived.  Jim

This is a great point. To me one of the greatest pleasures from my global lifestyle is a broadened horizon.  The US is such a vast country and huge market, that in the years I lived here, the focus has always been inward.   This seems to restrict many from seeing alternatives and other great ways to live.  Don’t get me wrong. I love the US and enjoy living here.  This is one great way of living… but not THE way of living and certainly not the ONLY way to live.

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This is a shot of Andean musicians who regularly serenade our diners at Meson de las Flores.

Another reader wrote:

Hi Gary,

I really enjoyed Francesca’s message about her experiences in various cultures and countries.  In 1985 I went to Saudi Arabia where I was the only American working at a UN designated Arab Training Center, upon graduating from USC.

It was just the thing I needed to give me the itch for all things international ever since. From there, I saw a good bit of Europe, then I worked for a Japanese electronics trading and assembly company, where I traveled most of Asia. Since then, I have been a self supporting ex-pat. I married my wonderful Filipina wife in the Philippines where I have resided these past 10 years.

She is like me, I like to try almost any type of food offered (well I passed on raw Camel’s milk because I heard it was an almost definite prescription for diarrhea). The wealth of experiences and international friends my wife and I share has provided a perspective I could never have obtained if I had never ventured from Southern California or The States.

So both Francesca’s and your daily messages resonate with me. I found Francesca’s message to be spot-on. I only wish more American’s could experience living outside the box (US)  Cheers!  Jim.

Jim lives in the Philippines… another great place to live especially for those in the Western US.

ecuador-shots Ecuador bamboo ready for construction scaffolding.

I thought this reply from a friend of 50 years (we grew up together in Rockwood, Oregon) who now teaches in China.

Gary,  I challenged my students to examine political incorrectness through humor.  Each of many classes were to ‘turn the tables’ in their humor.  And did they ever.  Here are but a few examples (often I corrected the grammar, but I never changed the meaning or focus).  The form of the jokes are an ‘imagined’ press conference to question China’s actions:

Q:  Do Chinese eat dogs?

A:  Yes. We eat a lot of dogs; and cats,too.  Especially on your “Thanksgiving Day”.  Turkeys are our favorite pets. We regard turkeys as human’s best friends.  In China only the most uneducated eat turkeys.

Q:  Why don’t you clean up the pollution in your air and water?

A:  Why don’t you clean up ‘Love Canal’ and 1000 other sites without closing the offending factories and moving them to China.

Q:  Why do you keep lending money to the USA even in light of the financial crisis?

A:  Why does a dog chase his tail?

Q:  China is becoming strong. Does your government want to take over the world?

A:  Yes, absolutely.  As soon as we become powerful enough, we hope to invade Iraq and Afghanistan; Viet Nam, Panama, Granada, Pakistan and Somalia are also on our wish list.

Q:  Why doesn’t your government give Tibet back to its monks?

A:  We keep Tibet only as a favor to the USA.  The monks want peace through repatriation, that is, equivalently, they want to help the Seminoles take back Florida, the Souix and Cherokee and Iriquois and Nez Perce to take back their homelands.

Q: Are the products made in China very cheap?

A: Yes, but if we were we using black slaves, the price would be even cheaper.

Q: You have 1.4 billion people. Now what do you want to do with it?

A: Find a new planet. Kill the native people there, and move in.

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Ecuador lilies. Learn about Ecuador Mother’s Day lilies here.

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Ecuador has excellent potters and entire pottery villages. Ecuador pottery comes in all shapes and forms. We look at its report potential in our July Ecuador export tour.

Gary

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Delegates enjoying a coffee break at Meson de las Flores on one of our tours.

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

See great May Ecuador airfares  here.

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

Ecuador Coastal Real Estate Tour May 16-17

Imbabura-Cotacachi Real Estate Tour May 20-21

Ecuador Amazon Herbal Tour May 22-24

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Delegates viewing San Miguel.

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

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

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Mansion we’ll view on real estate tour.

July 24-26 IBEZ North Carolina + Tangled Web

Oct. 9-11 IBEZ North Carolina + Tangled Web

Nov. 6-8  IBEZ Cotacachi + Tangled Web

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The real estate tour will view a new listing on this lake.

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

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

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

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

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Organic wine and Swiss cheese made in Cotacachi and enjoyed by delgates.

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

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

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Roses shown in a presentation on how to export Ecuador roses.

Learn about our July 2009 Ecuador export tour 2-4-1 deal here.

Ecuador Charity


See a link about Ecuador charity, giving and an Ecuador Living excerpt below.

Our Ecuador charity does not just give.   Just giving builds dependence which is not our goal. Our aim is to help the great people of Ecuador help themselves.

This is why our Ecuador charity, Land of the Sun Foundation  has had its greatest focus in the past few years on helping the hotel Meson de las Flores learn how to stand on its own.  We have helped the Meson staff take Meson from a crumbling empty shell and transform it into renewed facility and profitable operation.  All profits go back to improving the hotel or to the Ecuador Land of the Sun charity that aims to help expand business in Ecuador.  Merri and I do not make a penny from the hotel….our pay check  goes to the heart instead of  the pocketbook

For Meson’s success, we thank all of you who have visited us here.

The staff at Meson de las Flores asked me to send all of you their best wishes for UN MUY FELIZ ANO.  Here is Meson’s staff.

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From left to right Meson’s staff.  Ecuardo – maître d,  Alberto – sous-chef, Consuelo – hostess, Ray – global liasion, Rosita Elena – maid, Mauricio, – night assistant and tour guide, Santiago – chef,  Franklin – manager.  Not present Rosita De la Torres – maid.

The staff of Meson de las Flores are to be congratulated. They are remarkable people who have been willing to work hard for and to deserve their success.  Here is the type of comment I continually receive about service at Meson de las Flores.

Dear Gary and Merri,  From Mesón de las Flores I am sending you my very best wishes for this coming year!!!  I am at your hotel since Monday afternoon together with two good friends and we have really enjoyed the place, the warmth of your staff and the natural food.  I have particularly enjoyed the chance to relax, to do some sightseeing in Cotacachi and Otavalo.  2008 was a very busy year for me, but also a very blessed time for which I am very grateful to God.  I thank Him for the opportunity of having met during this year people like you who has a passion  for what they do and their work benefit many  people´s live. Have a wonderful 2009!!

The warmth of the staff at Meson is a continual refrain I read like this:

Hi Gary and Merri!  I  miss Ecuador so much!  It is amazing to me that, after only 90 days there I feel such a strong connection and love for Cotacachi and all the local people and the others I met there.  I am counting the days until my return.  You promised me that I would be pampered — and El Mason and the people
there really took care of me.  I think it is good to leave Ecuador and experience “home” — it really confirms that Ecuador is a beautiful place and the people there are so warm and welcoming.  Best thing I ever did!  Can’t wait to return!  Blessings to you both,

Having Ray as our global liasion at the hotel has been a hug addition that really helps guests.  We receive continual raves about Ray:

I LOVED the market in Otavalo and came home with another extra-large Ecuadorian bag loaded with rugs and wall-hangings. A very tempting place that I visited 4-times just to give you an indication of how much FUN I had there.
We’ll have to see how our retail season goes and if I can break away for a couple of weeks, I’ll travel back to Ecuador for two weeks in April.  Ray is a splendid character and makes one feel that “our casa is your casa” during your stay. He has that manner that invites and excites and I feel he is a huge plus to your organization. Everyone really likes Ray and I miss him already and his lighthearted banter and genuine care.

Next trip I’ll bring lots of ones and fives. Even twenties were a drag. Imagine! At home a $100.00 bill goes direct to pay one bill alone or one “small” grocery shopping without blinking an eye.

This guest is not alone in praising Ray. Meson has also become a  central meetng place for the gringo community in Cotacachi. Ray organized a Christmas party and this Cotacachi resident who emigrated from Michigan wrote:

Hi, Gary and Merri.  Just a quick note to say thank you for the great Christmas Party for Gringos at El Meson!  It was a lot of fun and we were amazed at how few of the people we actually had met.  Of course we solved that by making sure we met everyone there and invited them to visit us when out our way.  We wish you a very blessed Christmas and a fabulous 2009!  Looking forward to seeing you soon, Love.

Ray seems to help guests in so many ways:

Hi Merri  Returned from Cotacachi last Thurs after a great trip.  The woman that traveled with me wants to return this summer – she could not believe how nice the area is and the friendliness of the people.  I saw my apartment and am very happy with the bed and bedding that you added.  Thank you.  Ray Manna is a super nice person and very friendly and accomodating with the guests – a real plus.  Brought over 200lbs of clothing, school supplies, medical supplies and gifts for the children and nursing home.  Everything was donated – a very warm experience and shared joy.  I wish you and Gary a Merry Christmas – hope to see you in Ecuador in the Spring.  Hugs and love

From shopping to checking out and arranging tours. Another guest wrote:

Hi Merri, We are back from Ecuador and in a serious cold spell in Alberta. It is minus 30 C this morning but is beautifully sunny. We have a little snow so at least it feels like Christmas.  I just wanted to say thanks for your guidance in planning our trip. I also wanted to let you know what a terrific job Ray did despite the fact that he was a sick as a dog. His upbeat positive attitude and willingness to help was second to none. He is a real asset to your organization.  We enjoyed our stay at El Meson and found Cotacachi and the surrounding area to be both beautiful and peaceful.  We are already planning our next trip to Ecuador and are dreaming about its warmer days. Best wishes for the holiday season.

Ray and the staff make everyone feel like part of our family…and you are…when you stay with us at Mesons, as this guest noted.

I just wanted to drop you a note and let you know how much myself and all of our “extended family” enjoyed the course that you, Gary, and all of your competent staff put on earlier this month.  I am really just getting my feet back on the ground and I think that we are finally there.  Gary was awesome as we expected and gave me as really a beginning investor many insights and new ideas to think about.  I am speaking for myself and several others.  You showed me that you are an expert planner and really went  out of your way to accommodate  us especially when we had people coming in at different times.   Last and not least was Ray who also handled so much on the fly and did it well.    Ray really helped with the leaving process.  We really enjoyed your hotel and the hospitality.  It was  memorable. Thanks so much and we hope to keep in touch and continue with Gary’s newsletters! Merry Christmas and Happy Holidays.

Ray helps in Cotacachi and elsewhere as this guest noted:

Merri, We have arrived at Palmazul and it is very nice.  I would like to tell you that Tina and I had a wonderful time at Cotacachi.  The staff and service at El Meson could not have been better.  I must tell you that Ray was an excellent host and was attentive to every detail of our stay.  All of the other guests love Ray. I will report back to you after our trip in Palmazul. Best wishes.

Guest also report feeling healthier and often lose weight..even though they eat more as this guest reported:

Hi Merri:  Back home after that long flight and am already ready to return to Cotacachi.  Gary’s e mail this morning about the essential oils and other things to reduce stress.  He left out the most important thing…..Going to Cotacachi, El Meson, meeting new friends, seeing old friends, and seeing all the wonderful smiles of your staff, and  the people of Ecuador.

When I go to Ecuador, after the first day, I take no medicine, eat healthy food, get lots of exercise, and just feel wonderful.  Since I have been home..ort on my travels home, I have had a who knows what hamburger, bag of fritos, diet cokes, processed cheese and other just total crap, and I bet I have gained back those four pounds I lost in Cotacachi…in just two days.

Guest really feel healthier and enjoy our philosophy of health at the hotel.

Dear Merri and Gary, How wonderful an experience we had with you…and how much respect we have for you both.   Thank you for the extraordinary services you are offering in these times to so many.   It is rare that we feel as aligned with people as we do with you on so many fronts at once – investments, political opinions, commitment to the indigenous, ‘being healthy,’ commitment to organics/biodynamics and a religion of being kind.   Wow.  With Appreciation.

A stay at Meson seems to be food for the body and the soul as this reader reports:

My Dearest Merri and Gary,  I cannot thank you both enough for your wonderful hospitality.  I just want you to know that everything I read about Ecuador from your news letters and emails was exactly the way you described it and better…………..

The day we were all returning to Quito to go our different ways at the end of the tour, I was overwhelmed with tears because you both had been so wonderful and I didn’t want it to end.  I was already missing you and the wonderful experience I had had during your Ecuador Tour Adventure……..You both are very special and I am honored to be a part of your Group.

I also want you to know that………

I fell in Love while I was there……………..I  fell  in  Love.

I fell in love with the Country, the People, the Mountains, the Sky’s, the Thousands of stars at night, the Flowers,the Rivers, the Ocean, the Villages, the Towns, The Taxi drivers who were so helpful and wanted to speak English and practiced on me……….The Ecuadorian people who seemed to have this overall feeling of Happiness and well being that was contagious where ever we went.  From the Bus driver who stood at the door of our bus and helped each and every member of our group, everyday, get in and out of the bus. He was always smiling and happy to help.  To the Indian women, who were washing the Family’s clothes on flat stones in the River.  They looked up from their work, as our bus passed by, waving to some of us staring in disbelief………….I waved back, with tears in my eyes. They smiled at me as if to say… all is well and you are welcome……

Everywhere we went I felt as though I was surrounded by smiling faces.  Just walking out of the Hotel in Cotacache, the Native Indians of the area were dressed in their Native costume, except it wasn’t a costume, it was their way of life……….Immaculate, clean clothes, beautifully embroidered blouses with wonderful long wool skirts, colorful sashes around their waists, carrying small children wrapped in beautiful fabric on their backs.  I was in awe………. I was feeling as though I was in a time machine that was set for the mid 1850’s.  I had indeed traveled back in time and landed in Ecuador…………….The air was clean, the water was fresh, the food was healthy and delicious…………..I kept thinking, Where am I?  Is it possible?  Am I dreaming?  Is it real?

After being there for a couple of days, and easing into the relaxed, tranquil, lifestyle.  I began to notice the little nuisances of the Indigenous people I was surrounded by.

Every morning, wherever I went, I was always greeted with Buenos Dias ( good morning).  It was so peasant and  so comfortable so nice.  I  forgot about where I had come from, and my only concern was finding out everything I could about this beautiful Gentle Country of Beautiful gentle people.

Everyday was a unique Visual Experience for me.
I remember waking up to the Church bell ringing at 6am and looking out the window and seeing the mothers walking their children to the school.  All cleaned up with fresh clothes, their native costumes, and smiles.  Walking along the  hand made stone sidewalks, skirts swaying as they walked, lightly brushing the sidewalk as they made their way to the school.  Just watching them gave me a feeling of well being, and a knowing sense that all is well.   No plastic, no tensil, no cartoon characters acting like humans.  It was real,
real people, real feelings, real emotions experiencing their version of life on Planet Earth…

There were many times I was overwhelmed with emotions of humility and feelings of being honored and grateful to have had the opportunity to experience this unique Gift in those present moments.   A Gift that you, Gary and Marri, have made available to a select few. You and Ecuador have changed my life and my thinking.  Thank you, I am so grateful.

See more about Ecuador charity in an excerpt from Ecuador Living

We invite you to join us in Ecuador this year.

Gary

Our January courses are almost full but we have plenty space in February and beyond.

Join us at a course in Cotacachi or on Ecuador’s coast this winter.

Jan. 16-21 Ecuador Spanish Course

Jan. 22-23 Imbabura Real Estate Tour

See condos like this in Cotacachi for $46,500.

Ecuador-real-estate-advertising

Jan. 24-27 Coastal Real Estate Tour

See Manta condos like this one. Delegates are inspecting the 1,000+ square foot patio.

Manta-Condo

The patio has this view.

Feb. 9-11 Beyond Logic-Shamanic Mingo

Feb. 13-15 International Business & Investing Made EZ

Feb. 16-17 Imbabura Real Estate Tour

March 8-9 Imbabura Real Estate Tour

March 10-15 Ecuador Export Expedition

March 16-19 Coastal Real Estate Tour

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

Here is our Ecuador tour schedule for the balance of 2009.

Date                    Course                      Couples Fee

May 21-26  Ecuador Spanish Course         ($999)
May 27-28  Imbabura Real Estate Tour      ($749)

June 12-15  Shamanic Mingo Tour             ($999)
June 16-17  Imbabura Real Estate Tour      ($749)
June 18-21  Coastal Real Estate Tour         ($749)

July 2-7       Ecuador Import Export Expedition ($1,499)
July 8-9       Imbabura Real Estate Tour     ($749)
July 10-13   Coastal Real Estate Tour        ($749)

Sept. 17-22  Ecuador Spanish Course        ($999)
Sept. 23-24  Imbabura Real Estate Tour     ($749)
Sept. 25-28  Coastal Real Estate Tour        ($749)

Oct. 21-26   Ecuador Import Export Expedition ($1,499)

Nov. 6-8       International Investing and Business Made EZ Ecuador ($999)
Nov. 9-10     Imbabura Real Estate Tour          ($749)
Nov. 11-14   Coastal Real Estate Tour            ($749)

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

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

Better still join us all year in Ecuador! See our entire schedule of 27 courses, tours, mingos and expeditions we’ll conduct in 2009 and how to attend them FREE.

The course fee includes meeting at Quito airport (day before the
course)…transportation (by group bus) to Cotacachi and back to Quito.
Course fee does not include air are. accommodations, food or individual transportation.

Profit From the 2011 Economic Disaster


Are We 33 Months From Real Economic Disaster?

Dear International Friend,

Many investors worry about the current economic downturn…yet there is a destructive investment fundamental that is now so powerful it overwhelms all other factors that affect investing.  It has such power it could destroy most investors in North America and make the current recession pale in comparison. The frightening part is it could unleash its destruction as soon as October 2011!  I want to share what, when and when this disaster could happen.

Then I want to share how you can make a fortune from NOW THROUGH 2012 and during this crash.

Before I explain how you can reap profits never before imagined and sidestep the upcoming disaster that will wipe out so many investors…..we need to look at some facts.

These are facts, figures and statistics that will truly horrify anyone who even keeps a modest checkbook.  The figures give rise to such great concern that we can see the horrible predicament into which we are being led.

Let me prepare you by assuring you that every economic crash is simply a shifting of fortunes.  Just as the depression of the 1930s created many millionaires, so will this crash.  Once you understand the problems, you can find easy ways to protect against them and become one of those who are enriched rather than ruined during the transition.

Part of this debacle will come because the US dollar is now near a major fall…in fact an unprecedented crash is a better term what will happen to the dollar.  We now know, having seen the Dow fall 50% in a year, that US institutions are not invincible from unparalleled drops.

There may be ups for the US Dollar.  For every period of a rising dollar, there will be longer periods when dollars fall.  For every upward move, there will be an ever greater fall,  Each rising will be weaker and shorter, each fall, longer and deeper.

In this knowledge lies a fortune!  Here is why this fact is so sure.

In 1964, the year Lyndon Johnson became president, the total national debt was  $316 billion. By the time, Ronald Reagan left office that debt had climbed to $2.6 trillion.  The interest cost alone was $214 billion.  By 1990 the debt had risen to $3.2 trillion and interest costs for just the one year were $242.9 billion. Interest was the largest single government cost after Social Security, even greater than defense spending.  That was when the economic problem began as US debt moved towards a precipice where recovery becomes impossible.

Flash forward 18 years and read this excerpt from a December 2008 Washington Post article.

“President Bush has nearly doubled the national debt during his eight years in the White House.  Mr. Bush is on track to add $5 trillion to the $5.73 trillion national debt he inherited when he took office. According to Treasury Department data, the number was $10.66 trillion at the end of November, and it has been rising at an astronomical rate.”

That’s bad enough…but the future gets worse as the article says that during fiscal 2008, which ended Sept. 30, 2008 the national debt increased by more than $1 trillion, breaking the previous fiscal year record of more than $600 billion.

The government’s debt situation is about to get worse as the Post outlines that
Federal debt should increase by $2 trillion in fiscal year 2009 alone!

Given an average interest rate of 4 percent, that $5 trillion of extra debt requires extra $200 billion per year from taxpayers in interest on that debt – in perpetuity.

The Post article points out,  “During October, the first month of fiscal 2009, the national debt increased by a staggering $549 billion. That was approximately three-quarters of $1 billion every hour of every day, or more than $12 million per minute and more than $200,000 per second.”

This is a lot of debt even for America’s 14 trillion a year economy.

Then the news gets worse.

Excerpts from an August 2008 US News & World report says:  “Welcome to America’s $2 Trillion Budget Deficit.  Barack Obama has already said that America’s ‘investment deficit’ will take priority over its budget deficit.

A rough estimate of the cost of this New New Deal would be close to $500 billion a year, maybe $775 billion if Uncle Sam is to completely offset the drop in consumer spending predicted by Rosenberg. Now, as it is, the government is expected to run a $500 billion deficit next year. So the S&S plan would put that budget deficit at over $1 trillion. And if you tack on a potential $500 billion to $1 trillion bailout of the banking industry, that $1 trillion deficit could conceivably double to $2 trillion.

But a $2 trillion budget deficit would be, like, 15 percent of GDP. That would be the highest level since World War II and more than twice as high as the postwar peak of 6 percent in 1983.

I can’t believe the global bond and currency market vigilantes wouldn’t completely freak, sending U.S. financial markets into chaos. Talk about a worst—though entirely possible—case scenario.

How much worse could the situation get… a one year deficit that is 15% of Americas fourteen trillion dollar a year economy?

The answer is much worse…in fact five times worse… because…
all of these government estimates are skewed.

If US debt is now 10 trillion and Obama’s administration borrows 2 billion more in 2009, that makes the debt look like 12 trillion.

Yet according to excerpts a USA Today article, “Taxpayers on the hook for $59 trillion” by Dennis Cauchon.  The federal government’s debt is five times worse if corporate-style accounting standards are used.

The article says:  “Modern accounting requires that corporations, state governments and local governments count expenses immediately when a transaction occurs, even if the payment will be made later.

“The federal government does not follow the rule, so promises for Social Security and Medicare don’t show up when the government reports its financial condition.

“Bottom line: Taxpayers are now on the hook for a record $59.1 trillion in liabilities, a 2.3% increase from 2006. That amount is equal to $516,348 for every U.S. household.”

With such fundamentals, it is hard to be anything but pessimistic about the US dollar.  This is why, with the information I am about to share, you can reap profits again and again.

Take for example the financial power that comes from understanding the value of the US dollar to the Japanese yen.

Despite the crash of 2008, long term investors in the US stock market have done well.  January  1, 1982, the Dow Jones Industrial Average was 896.  January 1, 2009 it was  8,515.  That is a rise of 9.5 times in 26 years or about 36% (9% compounded) return a year…even after the 2008 crash!   $10,000 invested has grown to $95,000.

So, it seems.

Now, let’s look at the yen.  During the first half of the 1980s, the yen failed to rise in value even though current account surpluses returned and grew quickly. From ¥221 in 1981, the average value of the yen actually dropped to ¥239 in 1985.

When the Dow was 896, a US dollar bought 230 yen.

Today, 26 years later, January 1, 2009, a dollar buys about 90 yen. Imagine this. 2,300,000 yen purchased $10,000 in 1982 which grew to $95,000.   The $95,000 buys 8,550,000 yen.

The excellent Dow profit looks downright lousy, an increase of only 3.7 times in 26 years.  61% percent of all the Dow profit in the last 26 years has been lost due to US dollar erosion.  And the dollar’s fall will grow worse!

This is powerful profit knowledge…IF…you know what to.

US government debt has passed the short term point of no return.  Three bold steps were needed two decades ago, a reduction of entitlement costs (Social Security, Medicare, Medicaid, etc.), reduced defense spending and a reduction of the existing debt.  The government moved in the opposite direction… in all three cases.

There are many ill omens as our new government still does not take this incredible problem seriously. The proposed new plans might cost trillions more. These are trillions that the US government does not have.  Nor are we likely to see any increases in tax revenues during the current economic downturn.

America must borrow to spend and the deeper the US debt, the greater the dollar’s fall.

The government’s refusal to create a plan to balance the budget shows no solution is in sight.  It is menacing to see how the government plans to spend more now.

The US Treasury only has 33 months left before a tsunami of expense rushes over  the government.   By the time (if ever) the government finally recognizes this problem, for most investors, it will be too late.  If it takes a terrible crash of the US dollar to finally wake the government, it could wipe out millions of families’ saving, capital and spending power in the process.

All these facts are omens of ill winds ahead.  There are already tens of millions of Americans who have been financially wiped out….but the worst has not even begun.

We will see hyper inflation, massive unemployment and a free fall of the greenback that will affect currencies and investing everywhere.  This crash will make the current downturn…even the last great 1930s depression look like a Sunday picnic.

You do not have to be alarmed because the resolution which I am about to share is so simple, anyone can act and can prepare for this disaster without inconvenience or trouble.

You do not have to participate in the great fall of the US dollar.  All you have to do is learn how to be a multi currency investor.

The time for international investing is right.  Global diversification has already created fortunes for a few sophisticated investors because this obvious problem of the US government debt actually makes it easier to make money, if you know how to invest abroad.

Let me explain why big problems can mean big profits, then let me explain why no one has been around to tell you how to invest abroad but why there is not a solution that can make multi currency investing totally easy for you.

First, let’s look at the big problem. It’s a sad reality that US government debt has actually been ruining US investments for over 40 years.  The big bankruptcy that’s coming is just the end.  The bankruptcy really started in 1971 and has been building steadily since.

Until 1971 the US dollar was the kingpin currency for the world.  Then it was “temporarily” suspended from the gold standard.  This “temporary” move, like our debt today, was ignored by the government. Since that time (the dollar was never reinstated to the gold standard), the buck has fallen and fallen. Though you may have read about a strong dollar lately, the reality of the greenback’s slide continues.

Don’t get me wrong, the dollar has not dropped every day.  It has enjoyed some short term rises over the past 37 years, but to see the real picture all you have to do is look at the dollar’s value in any major currency in 1971 and then look at its value today.

In 1972 for example the US $ was worth over 4.25 Swiss francs, 4.00 German marks and nearly 400 Japanese yen.  Today, as you can see from the yahoo.the same dollar has dropped as low as 1 dollar per Swiss franc, .65 euro (related to the German mark) and only 90 yen.  In other words, if you had $10,000 in 1971, it was worth about 4,000,000 yen.  If you invested those dollars safely clear back in the 1970s and earned a 4% compound return, by 2008 those dollars were worth over $40,000.  You might well feel the investment had gone well.

The sad truth is those $40,000 are now worth only 3,800,000 yen!  All US dollar investments have lost over 4% compounded each and every year for the past 22 years.  Your 4% return was a real loss by hard currency standards, but this loss has been hidden and the real facts about your wealth have been kept from you.

On the other hand, had you invested in Japan, Switzerland, Germany or most other major currencies, your investment would have tripled or quadrupled in dollar terms even before you started making profits!

There is another fact that is even more spectacular.  Most stock and bond markets abroad (in addition to the currency gains) have been better than in the US.

For example had you invested in the Dow in 1978, the ow was standing at 865. Today, mid December 2008 is is 8,500.  $10,000 invested in the Dow in 1978 would have grown to about $100,000…even after the global stock market crash.

Not bad?

If instead you had invested $10,000 in an investment as simple as the Templeton World Fund which started in 1978 and invests in stock markets al over the world, the $10,000…after the 2008 global crash…is still worth $352,080.

Look at the performance of bond markets as well.

Right now you receive 1.96% on the U.S. Treasury bonds that mature 2013.

Yet good quality Danish bonds of about the same term pay 4.53%  in Danish kroner.

Norwegian kroner bonds pay 3.70%
Swedish government bonds pay 2.74%
British Treasury bonds pay 3.18%
Mexican Government US dollar bonds 5.10%
Peru Government US dollar bonds 7.57%
South African bonds in euro pay 8.61%
Indonesian bonds in US dollars pay 11.57%
Hungarian Government Florin bonds 12.35%
Brazilian Government Real bonds 14.78%

Plus all of the currencies above (though depressed lately) have appreciated as much as 50% versus the dollar in recent years.

These statistics show how US government debt has invisibly, but relentlessly, destroyed the value of our investments in North America.  These statics come from my multi currency investment course, that can help you prosper even though the US dollar falls.

I’ll explain the course but first let me explain why, even though the US dollar has fallen so dramatically over the past 37 years, no one has been knocking on your door to tell you how to invest abroad.

It is the very weakness of the US dollar that has stopped North American banks, brokers and other financial institutions from telling you about the problem. These facts have been hidden from you because they have been afraid if US investors knew how bad the dollar has been that no one would deal with them.  They have, short and simple, been afraid of losing business.

Now let me tell you about this simple easy-to-use investment course called Multi Currency Investing  (MCI) and how you can have it on a no risk basis.

First, let me explain that the course is designed for anyone.  It is even for those who have never invested abroad, even if they are small investors with only a few thousand or a small amount to invest monthly.  MCI explains how investments can be made overseas for small amounts.  It even explains how to invest out of the US dollar right her in the US and never leave your home of office.

However, MCI also gives sophisticated information that you might not know even if you have been investing all over the world.  Some of my readers and course delegates are billionaires who own dozens of companies and invest all over the world!

Sleepy, Safe Portfolios Can Earn Over 100% Per Year

Multi currency investing does not require any fast trading techniques.  Multi currency portfolios are normally slow and sleepy investments…not currency contracts or futures speculations.  Most multi currency positions are aimed with a five year horizon…pretty sleepy compared to people who trade currencies (an entirely different and far riskier technique). For most of us, slow and sleepy mean SAFE!

Yet multi currency portfolios can be really profitable as well.

How sleepy and how safe?

Let’s look first at sleepy.

In 2006 we created an Asian multi currency portfolio consisting of just five award winning mutual funds.

We did not touch the entire portfolio for an entire year. Then after one year we made just five changes…dropping two mutual funds and adding three other mutual funds. Then we did not make another single change. That’s pretty sleepy, choosing a handful of mutual funds and making only five changes in two years.

Okay. Here is the big question. How profitable?

In the first year (2006) this portfolio rose 114.16%. Then we made the five changes mentioned (two funds dropped and three added). In 2007 this portfolio rose 122.62%.  2008 was a disaster year and the portfolio lost 79%. But when your portfolio is up over 236% in two years, it takes a lot of disaster to lose…so this portfolio is well ahead even after the great 2008 crash.

Year one up 114%
Year two up 122%
Year three down 79%

Total in three years…up 157% or an average of over 52% per annum for three years…even after the 2008 crash.

May I hasten to add that the portfolios published in the portfolio are not published recommendations.  These are portfolios we study to learn why they rise or fall. More on this in a moment.

First let’s examine safety.  How safe?

The portfolios were chosen with the help of one of the world’s safest banks and the mutual funds were all subsidiaries of that bank.

That safe bank is a Danish bank. That’s good because in recent years Denmark has been rated by Standard & Poor’s as one of the safest country in the world in which to bank.

The bank is Jyske Bank…well established with a history of over 100 years. Jyske is Denmark ’s second largest bank, with 450,000 clients in Denmark and over 30,000 abroad.

Jyske Bank has over 23 billion euros in assets and also happens to be one of the leading currency traders in the world. The Danes have always been big currency traders because as a small naval country surrounded by England, Sweden, Finland, Russia, Germany, Norway and other countries…they have always had to deal in many currencies.

This historically gained expertise means that unlike most banks (that trade only eight hours a day) Jyske maintains a 24 hour global currency and commodity dealer service. Many other large banks use Jyske to handle their off hour currency positions. This means that Jyske is huge when it comes to multi currency activity. In fact their turnover reaches $50 billion dollars a day.

Let’s address this issue of safety in more detail. Normally this is a pretty moot point. Right now everyone is concerned. Is a bank safe or not? I like Jyske from a bank safety point of view because there are three bank safety points, from the top down.

Bank Safety Point #1: A recent Yahoo Canada article shows a survey by the World Economic Forum listed five safest countries in which to bank.

Canada
Sweden
Luxembourg
Australia
Denmark

So Denmark is a safe place to bank. Now let’s look at Jyske Bank’s safety rating.

Bank Safety Point #2: Jyske Bank is Denmark’s second largest bank.
On October 10 2008, Moody’s affirmed Jyske Bank’s long-term Aa2 rating stable rating. This decision came despite the deteriorated economic prospects in Denmark, particularly in respect of the property market.

Bank Safety Point #3: Also on Friday 10 October 2008, the Danish Parliament passed a bill that secured all deposits and unsecured claims against losses in Danish financial institutions. The rating of the Kingdom of Denmark is Aaa/AAA with Moody’s and Standard & Poor’s respectively.

These are common sense bankers. They had minimal sub prime exposure when that scandal broke. Jyske had zero Madoff exposure.

That’s safe!

I happen to know Jyske Bank because I began using them (as my bank) over 20 years ago. They are one of the few banks that offers a special multi currency portfolio service for investors from almost anywhere in the world…including US investors through their Jyske Global Asset Management.

I was one of the first writers and publishers to begin writing about multi currency investing. Jyske bank was one of the first banks to offer a multi currency portfolio service…and they were my bank.

Not surprising we got together and have created a symbiotic relationship that can help you learn how to create multi currency portfolios that suit you.   Jyske Bank assists by providing information that only a huge global bank trading 50 billion dollars of currencies and contracts a day (as Jyske does) can afford.   My symbiotic relationship with Jyske allows me to combine my experience with this bank’s incredible knowledge, real time information capability and expertise so you learn in a most practical way from some of the greatest multi currency experts in the world.

Now let’s look at both the up and down side of these high performing portfolios and how they work?

The goal of MCI is not to recommend investments for you, but to help you learn how to be a multi currency investor so you are better at directing your broker,  banker or investment advisor.

To accomplish this goal, the course provides three levels of education.

Part one of MCI is an extensive beginner’s guide to developing multi currency portfolios.  This entire primer is sent to you when you begin the course.  This portion of the course takes nothing for granted and walks you step by step through every part of international investing.

Take, one of the primer lessons as an example. It explains theory on some of the reasons why currencies move, but taking nothing for granted it also explains what the currencies of the world are and gives their history, so before you learn why the euro doubled versus the US dollar, you get to know these currencies and the their underlying fundamentals.

Another lesson in the primer gives case studies that are real examples of how the theory has been put to use in the past.  This lesson covers theory on why currencies move and how to spot the hot currencies months ahead of time. Then it gets down to brass tacks and explains how to open bank accounts overseas to hold the hot currencies…or even how to invest abroad through US banks and brokers.

Everything about how to bank abroad and hold the currencies is covered.  How to open accounts, how to send money abroad all the laws relating to overseas accounts, taxation, etc. plus the most important part, which is how to spend the money when you need it from overseas accounts.

Then the course gives a real, live case study that show how the theory works in reality. It tells about an investor who opened an account, got a  checkbook and credit card and how he used them both and held several currencies for higher returns that he gained with US dollars.

Finally you also get valuable contacts in the course.  These are vitally important. There are names and addresses of institutions and source of information you can use to turn your knowledge into action!

Here is the syllabus of the primer you will receive in MCI.

* Why Currencies Move.

* How to Bank Abroad.

* How to Buy Stocks and Bonds Overseas.

* How to Choose Currencies.

* Why Currencies Rise and Fall.

* How to Borrow Low and Deposit High.

* How to Buy Mutual Funds That Invest Abroad.

* ETFS. Why They are Often Better Than Managed Funds.

* How to Find Bonds that are Like and Often Better than Shares

* How and When to Capture Recoveries.

* Global Portfolio Diversification Theory.

* When Leveraged Low Risk Portfolios Are Safer and Perform Better Than High Risk Portfolios.

The primer deals with the past…but as we so vividly saw in 2008…markets are always in a state of change so…

Part two studies global markets in real time.  Your MCI course comes in regular emailed lessons usually emailed every two or three days.  Though at times you’ll get a lesson every day for many days in a row. Other times nothing will come for a week because these lessons are based on real time market activity.  MCI studies currencies and global investment markets and reports to you on their value and why that value occurs.

This portion of the course studies the current performance of portfolios that Jyske bank creates…plus examines the portfolios of several globally diversified mutual funds….for both small and large investors.   This portion of your course gives you an overall, up-to-date understanding of market and currency moves.

Part three of MCI shares my portfolio and where I invest.  This is an unusual feature…so let me explain why MCI regularly reviews my personal investment portfolio and how this can be of value to your investing.

First this is honest.nd we have fund that for us…honesty pays.

As we recently learned from the Madoff scam…investors must always be on guard.  This is our 41st year of educating about international investing.  This is all we do and our great long term success has been based on placing our readers ahead of all other considerations.   We do not sell investments. We do not give individual advice.  We have no hidden agendas that could lead investments astray.

We want you to see and know what we are doing based on our own advice so you can trust the data we share.  Otherwise the lessons do little good.  You the reader are the only way we earn.  We do not receive commissions…or any form of remuneration for selling shares or accounts etc.   We hope to work with you for life…rather than make some type of quick killing by advising you to invest in something we d not really believe in.

We feel that by letting you know how we actually invest helps accomplish this long term bond.

This is vital because we often invest exactly the opposite of the market.

Take for example the five 2007 portfolios we studied in MCI:

Portfolios             12 Month Rise
Swiss Samba           53.32%
Emerging Mkt        122.62%
Dollar Short             48.19%
Dollar Neutral          38.67%
Green                    266.30%

This is performance you will rarely see duplicated…anywhere…at any time.

Yet these were model portfolios…not meant to be yours….not meant to be mine.  I do not invest in these portfolios because…they do not suit my lifestyle and my unique personal financial needs.  One of the key lessons that MCI focuses on…again and again is “there is no perfect portfolio for you”… except one designed uniquely for you.

My portfolio is not perfect for you either…yet seeing “how” I adapt my portfolio to our virtual real time portfolio reviews can help you learn how to adapt your personal portfolio  as well.

So even though our study portfolios were enjoying world class performance, exploding upwards like rockets,  I was reducing leverage and getting out of markets.  On August 17, 2007…well before the 2008 collapse began I posted the note in an MCI lesson on why I was getting out of leverage and equities.

“Such historical measures are so inexact that we cannot predict just from them what will happen in the short term. The numbers are close enough that we could be entering the fourth sub cycle down (similar to 1976 to 1978). If so expect a sustained drop in markets for two to three years.”

Even though the portfolios MCI studied continued to rise, I sent another danger lesson to the course on September 21, 2007. “Equity markets dropped again violently last month. Now these markets have recovered again. Yet this may be a last gasp party.”

I began increasingly concerned for myself and on October 14 sent this lesson  “Periods of high performance are followed by times of low returns. We never know for sure when an upwards cycle will stall. Fundamentals look good for a bright 2008 in emerging and equity markets, but this can change quickly so to give our readers a better perspective, this year we are reducing leverage and adding a sixth portfolio with no leverage to study”.

The Oct. 15, 2007 lesson said: “Okay it’s time to turn the burner down and offered a “leverage dwindling” warning.  On Oct. 26 I explained to readers that I had eliminated even my modest leverage and wrote: “There is a final reason I liquidated my leverage now…to lead by example. Too many readers are thinking that the dollar short or dollar neutral Portfolios are only up 38% or 48% for the year. When one thinks that way they could be headed for trouble, so I hope investors will follow my lead and take greater care with their leverage.”

I did not stop. The November 8, 2007 was a Black Friday interim message that warned again about all the points above and more.

This created one plain and simple fact.   The 2008 stock market crash drop did not surprise those enrolled in MCI.

Right now at the end of 2008, I am adding leveraged bonds to my portfolio. Here is an excerpt from the December 28, 2008 MCI lesson:

There are many similarities between the US economy and the US government’s response to the downturn with Japan’s slowdown in the early 1990s and the Japanese  government’s response then.   Readers made fortunes borrowing yen as they may make fortunes borrowing dollars now.

Watch especially now for ways to borrow dollars at low rates for investing in high yield, short term dollar bonds like:

Currency                      Bond                               Yield

USD    9.125   19/05/2009    SOUTH AFRICA     6.04%

USD    10.25   17/06/2013     BRAZIL REP OF     6.24%

USD     8.25     31/03/2010     RUSSIA                   5.93%

This type of bond has no currecny risk if leveraged in US dollars.  Your only major risk is default.

Bonds denominated in euro are even more to my liking because they pay higher interest and have a potential forex gain if the dollar drops again verus the euro.

Yet our lessons are objective and provide warnings of risk as well.  This type of leveraged investment also has a chance of loss if the dollar rises verus the euro. Do not borrow more than you can afford to lose!

There is even more yield potential in bonds denominated in euro.

EUR      5.75   02/07/2010     ROMANIA             10.81%

EUR    8.5     24/09/2012     BRAZIL REP OF      7.49%

EUR    5.25     16/05/2013     SOUTH AFRICA     8.61%

These three bonds yield an average 8.97%. They represent a diversification into Europe, Latin America and Africa.   If you invest $100,000 and also invest another borrowed $100,000 at 4%, your total annual return is 13.94%  before  any forex gains or loss.

MCI provides you with bank contacts who  lend in many currencies often at very low rates, to leverage investments.

Multi Currency Investing helps you enjoy the ultimate form of financial security.

From the very first lesson, you expand your knowledge about investing abroad.  You gain contacts that can bring you solid profits and safety when most investors are being silently robbed blind by the steady deterioration of the US economy and the US dollar.

I want to give my readers an answer to relieve the anxiety they faced from this awesome dollar problem that I don’t think is going to get solved.

I originally started this course just for my readers.  Tens of thousands enrolled and we have shared how to invest globally for deades.

Now due to the 2008 global economic crash, I am rewriting the entire course.  This
crash has changed everything and I would like to share how to profit in 2009 with you.

Everyone needs to know how to have multi currency diversification. But in case this course does not help you, we provide a 30 day “completely satisfied or your money back” guarantee that we have offered our hundreds of thousands of readers for more than 20 years.

Our Multi Currency Educational Service is normally a mere $249 for a very long and educational year!

Won’t you share this exciting world of wealth accumulation with us and our readers around the world?

Subscribe here or see below how to join us in Ecuador or North Carolina and receive this course FREE.

Gary Scott

P.S.   As previously mentioned, the portfolios we tracked in 2007 had the following results:

Portfolios             12 Month Rise
Swiss Samba           53.32%
Emerging Mkt        122.62%
Dollar Short             48.19%
Dollar Neutral          38.67%
Green                    266.30%

You can imagine performance like this attracted quite a bit of attention…and it did.

However these high returns were not the important benefit our readers gained.

MCI does not recommend nor manage portfolios.  We did not suggest that readers invest in these portfolios. We created and tracked them because they were educational.

The courses is designed so you can work with your own investment manager to create your own multi currency portfolio that suits your own special, individual needs.  The multi currency investment course is designed to help you learn how to manage your manager… nothing more.  Yet this is a lot because Jyske Bank can provide a stable and safe institution for those who wish to employ a multi currency strategy.

The course will help you guide  any investment adviser or investment manager who understands how to invest in more than one currency.

The course also helps you manage risk. The incredible portfolio performance above was achieved because the portfolios were leveraged using a tactic we call a multi currency sandwich. Investors borrow low and invest in yielding or growth portfolios. The portfolios used loans in Japanese yen and Swiss francs to magnify profits in good times.

Plus we learned how leverage pushes losses faster in bad times and that leverage can help recovery at the end of bad times as well.

Here is an interesting multi currency fact that provides us with a valuable investing idea.   In 2009 we are tracking three Jyske portfolios.

Low Risk Multi Currency Portfolio invests in:  Fixed Income 70%,  Equities 20%,  Alternatives 5%,  Cash 5%.

Medium Risk Multi Currency Portfolio invests in: Fixed Income, 40%,  Equities 50%,  Alternatives 5%, Cash 5%.

High Risk Multi Currency Portfolio invests in:  Fixed Income  10%, Equities 80%,  Alternatives 5%,  Cash 5%.

Our studies to date have shown that the low risk portfolio, with some leverage, can be safer and perform better than a non leveraged high risk portfolio.

MCI continually reviews these portfolios so we can earn real time from their performance.

Subscribe here or see below how to join us in Ecuador or North Carolina and receive this course FREE.

Here is what a few others from around the world have said about our services and reports on international investing.

“ Gary , I am a long time subscriber in various media, and while cleaning out my files today I found some old ‘Gary A. Scotts World Reports’. In particular, the April 1988 issue provided the info that made me over a million dollars. Just wanted to say a belated ‘thank you’ and please continue the excellent work. Warm regards,”
From an Unknown Reader

“Dear Gary, I would like to give thanks to you for introducing me to Jyske Bank two years ago.

“I have been a long-time client of Merrill Lynch, but am in the process of re-evaluating my relationship with the largest brokerage company in the world. My problem is that when I compare Merrill to Jyske, Jyske outshines Merrill (or other major U.S. brokerage firms) in most categories as follows:

“1) Even though Jyske is much smaller, it has a much more global perspective which is critical in an evermore global investment environment.

“2) In order to maximize their own individual revenue, the brokers at Merrill prefer to outsource the day-to-day management of their accounts to various fund managers and hence, ‘manage the managers’. In contrast, I can call my Account Manager at Jyske and he can discuss every aspect of my account in detail with me.

“3) I attribute this difference in #2 to the fact that Jyske’s employees are not compensation driven, but instead are focused on satisfying their customers. That is why Jyske’s clients stay with the Bank on average for 12 years, which is phenomenal by Wall Street standards.

“4) Jyske’s security is far more stringent than that of Merrill’s. In addition to the standard account code and password, to pass through Jyske’s security one has to enter a Key Card number and also a randomly-generated 4-digit number from said Key Card.

“5) Having an account offshore allows me to sleep better given the anxious times we live in. Since I report the existence of the account and pay all taxes due, I am fully compliant with the law. However, such an account gives me and my family a ‘financial life boat’ should events in our own country ever get out of hand.

“As Dorothy Parker once said, ‘You can lead a horse to water, but you can’t make them THINK’. Jyske is a thinking person’s bank. My only complaint is the time zone difference since I live in California . However, since I am an early riser and my Account Manager is very responsive to my emails, this problem is very small relative to the HUGE benefits.

“Again, many thanks for introducing me to Jyske Bank. Given the ‘dumbing down’ that occurs in the popular media today, your ezine and its recommendations are ever more important. Please continue your good work to enlighten your readership.  Warm regards,”
C.M. CALIFORNIA Businessman

“I was so overwhelmed with information I received I had to spend several days reading, sorting and filing it! I have decided to move my modest investment capital overseas.”
B.W. MONTREAL CANADA Professor

“Send me your report on safe banks lending at 7% for redeposit at 13% or more.” B.V. ADDIS ABADA ETHIOPIA Economic Commission United Nations

“A number of new and significant contacts were made. It would be extremely helpful if you could supply us with WORLD REPORTS.” I.M. TORONTO , CANADA Banker

“You are as good as your word which is rare these days. I look forward to attending one of your seminars.” C.K. GENEVA , SWITZERLAND Banker

“In spite of my marketing experience, your information really got me going!” M. C. LONDON, ENGLAND Marketing Consultant

“Thanks for the three reports. They are very interesting and should find many readers here in Japan .” M.A. Tokyo , JAPAN Computer Programmer

“I would like to say how much I enjoyed the information I received.” A.B. Providenciales TURKS & CAICOS Accountant

“First let me say how much we enjoyed the investment seminar.” W.J. SAUDI ARABIA Oil Engineer

“Once again thanks for all the great information.” G.K. PERTH , AUSTRALIA Insurance Executive

“Your letter of November 8th warned me to beware of the market just a week before the 120 point crash on November 15th!” T.G. N. CAROLINA Pilot”

Yet global economics 2008 have changed everything.   So I am now offering this course to a wider audience who have indicated their concern with the state of the US economy.

Before I make this offer to a wider audience however, I want to make a special December offer to you.

This course has been and is normally offered for $249.

To begin, I am reducing that price to $175…a savings of $74…yet there is much more because you can enjoy this course FREE.

You can enroll here…now and save $74

Here is how to receive this course FREE.

In 2009 I will work with Jyske Bank to conduct four  courses  about how to be a multi currency investor.

Two of these courses will be conducted in Ecuador

February 13 -15 and Nov. 6 to 8, 2009

The other two courses will  be conducted in North Carolina.

July 24-26 and  Oct. 9-11, 2009

Simply sign up for any of the four courses above and you receive the Multi Currency Course in 2009 FREE.