Tag Archive | "White House;"

Power of Global Investing Diversification


There is great power in global investing diversification.

Investment-diversification

Sunrise at our North Carolina farm.  We diversify because the sun always shines somewhere.

Pure capitalistic theory says that in the long run… a global economy is good for everyone….overall.

Technology gives us the ability to buy from those who serve us best, wherever they are  in the world.  Why should we buy poorer quality goods locally at a higher price when someone from elsewhere can serve us better and for less.

Plus if we produce something better than anyone else we should be able to sell our product or service anywhere in the world as well.

Floridians and Californians buy apples from Oregon and North Carolina.

Oregonians and North Carolinians buy oranges from Florida or California because these areas each have special advantages… excellent conditions to produce and deliver those fruits clear across a continent, better and for less.

Global market advantages can be based on geography, infrastructure, skills sets, labor costs etc.

The theory of globalization is good but the process is not smooth. Globalization creates unemployment in many places and distorts many economies in the short term.  This usually pushes the process into the political arena and gets governments involved.  Governments often act based on political considerations rather than for good, long term economic reasons.

Plus business if given a chance… does not always encourage a free economy either.  Give big business a monopoly and they’ll tie up free trade even faster and much more efficiently than a government.

There is little, as businesses or investors, that we can do do to change these facts.

We are usually better off to adapt and take advantage of whatever situation exists instead.

This is what creates power in diversification.

Investment-diversification

Sunrise at our Ecuador hacienda.

The sun always shines somewhere. When our business and investments are diversified, we just have a better chance that our investments and business will be somewhere where there the business climate is sunny.

For example… a recent message Ecuador Beats Inflation looked at excerpts from a recent AOL.Money article by Jim Kuhnhenn entitled “White House Projects $9 Trillion Deficit”: In a chilling forecast, the White House is predicting a 10-year federal deficit of $9 trillion — more than the sum of all previous deficits since America’s founding. And it says by the next decade’s end the national debt will equal three-quarters of the entire U.S. economy.  But before President Barack Obama can do much about it, he’ll have to weather recession aftershocks including unemployment that his advisers said Tuesday is still heading for 10 percent.  Overall, White House and congressional budget analysts said in a brace of new estimates that the economy will shrink by 2.5 to 2.8 percent this year even as it begins to climb out of the recession. Those estimates reflect this year’s deeper-than-expected economic plunge.

Yet at the same time a Wall Street Journal article entitled “Ecuador Inflation To End ’09 Below 4%”  By Mercedes Alvaro shows that Ecuador’s economy is growing.
Here is an excerpt: QUITO (Dow Jones)–Ecuador’s inflation rate will end 2009 below 4% and the economy will grow close to 2% this year, President Rafael Correa said Wednesday.

“The annualized inflation will be below 4%,” Correa said late Wednesday in a radio and TV address. “There is not recession. Ecuador will have a growth of about 2%.”  “We have faced the biggest world crisis successfully,” Correa added. Early Wednesday the central bank said the Ecuadorian economy overall is poised to expand 1% in 2009.  Ecuador’s gross domestic product grew 6.52% in 2008 while inflation reached 8.83%.  According to central bank data, Ecuador’s liquid international reserves stood at $4.0 billion as of Aug. 21.  Last week, the central bank president, Carlos Vallejo, said that the government will repatriate in the coming days some $300 million of Ecuador’s liquid reserves invested abroad.  Ecuador’s liquid international reserves include public-sector deposits with the central bank, revenues from oil exports, loans from multilateral lenders and minimum reserve requirements from private banks.  In May, the central bank established a liquidity requirement forcing private banks to keep at least 45% of their assets and investments in Ecuador to draw back cash and boost domestic liquidity.

Investment-diversification

Sunrise on…

Investment-diversification

Sunrise over Mount Imbabura.

Because I am diversified in Ecuador, Georgia, Florida and North Carolina, in 2007, I was selling Florida property at the top of the market.  I was buying Ecuador real estate with those returns. Now that Florida  is down and Ecuador real estate has risen,  I am selling Ecuador real estate and buying in Florida.

A huge portion of all profits in business and investing come from timing.  Most commodity, stock and real estate markets go through ups and downs.  If you plan your investments and liquidity so you sell only at favorable times, global investing diversification enhances your chances of always having assets someplace where there is a seller’s market.

Investment-diversification

Sunrise shot from our hotel Meson de las Flores.

So when you think Ecuador… or Mexico or Panama… or wherever…. also thing diversification.  The sun always shines somewhere and your changes of financial suntans increase when you diversify.

Gary

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

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

This course can help you create your own internet business.

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

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

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

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

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

Even Better Get All three Courses Free

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

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

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

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

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

Or head south to Ecuador!

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October 16-18 Ecuador Southern coastal tour ONLY FOUR SPACES LEFT

Oct. 21-24 Ecuador Import Export Tour

Oct. 25-26 Imbabura Real Estate Tour

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

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

Nov. 6-8 IBEZ Ecuador Seminar

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

Nov. 9-10 Imbabura Real Estate Tour

Nov. 11-14 Ecuador Coastal Real Estate Tour

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

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

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

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

Read the entire article Ecuador Inflation To End ’09 Below 4%

Ecuador Beats Inflation


Living in Ecuador is one way to beat inflation.

ecuador-farming

Ecuadorians now how to live well on less.  They even farm steep land like this.

See two other ways to beat inflation below.

Beating inflation is absolutely vital now… especially for those about to retire… because Social Security is fading.

Lalla was a 14th century poetess who lived in Kashmir.  She described herself as a somewhat… something… moving dreamlike… on a fading road.

This is a perfect description for Social Security now… somewhat… something… moving dreamlike… on a fading road.

ecuador-farming

Almost every plot of spare Ecuador land is rich and growing food.

Picture this.

Excerpts from a recent AOL.Money article by Jim Kuhnhenn entitled “White House Projects $9 Trillion Deficit”: In a chilling forecast, the White House is predicting a 10-year federal deficit of $9 trillion — more than the sum of all previous deficits since America’s founding. And it says by the next decade’s end the national debt will equal three-quarters of the entire U.S. economy.  But before President Barack Obama can do much about it, he’ll have to weather recession aftershocks including unemployment that his advisers said Tuesday is still heading for 10 percent.  Overall, White House and congressional budget analysts said in a brace of new estimates that the economy will shrink by 2.5 to 2.8 percent this year even as it begins to climb out of the recession. Those estimates reflect this year’s deeper-than-expected economic plunge.

The grim deficit news presents Obama with both immediate and longer-term challenges. The still fragile economy cannot afford deficit-fighting cures such as spending cuts or tax increases. But nervous holders of U.S. debt, particularly foreign bondholders, could demand interest rate increases that would quickly be felt in the pocketbooks of American consumers.

The amount of  this debt just an astounding and will almost certainly lead to inflation and a falling US dollar.

ecuador-farming

A lot of the food grown is organic so…

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the local markets, like this one in Cotacachi have low cost organic “Productos Organicos.”  This makes it easier and less expensive to eat well in Ecuador.

The article above about the deficit is bad enough news but a recent USA Today article Social Security checks set to shrink in 2010 that shows how for those who are retiring, matters are getting even worse. Here is an excerpt:  Millions of older people face shrinking Social Security checks next year, the first time in a generation that payments would not rise.

The trustees who oversee Social Security are projecting there won’t be a cost-of-living adjustment (COLA) for the next two years. That hasn’t happened since automatic increases were adopted in 1975.

By law, Social Security benefits cannot go down. Nevertheless, monthly payments would drop for millions of people in the Medicare prescription-drug program because the premiums, which often are deducted from Social Security payments, are scheduled to go up slightly.

Cost-of-living adjustments are pegged to inflation, which has been negative this year, largely because energy prices are below 2008 levels.

Seniors “count on that COLA,” said Barbara Kennelly, a former Democratic congresswoman from Connecticut who heads the National Committee to Preserve Social Security and Medicare. “To some people, it might not be a big deal. But to seniors, especially with their health care costs, it is a big deal.”

Even the Cathedral next to our hotel grows organic corn in the church yard.

ecuador-farming

There are numerous ways to beat this inflation crunch.

Inflation beater #1: Move to a low cost of living location like Ecuador. Inflation will hit Ecuador as well… but the starting baseline is lower.  In addition people in Ecuador know how to live well… on less.

Inflation beater #2: Own real estate or other commodities. The price of property and commodities, properly purchased will rise with inflation.  Property in Smalltown USA especially offers value now.

Inflation beater #3: Have your own business.  This is the greatest inflation beating asset of all, the ability to earn wherever you live.

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

ecuador-farming

With so much sun and plenty of rain, the grass is rich, even in Cotacachi at 7,500 feet altitude for…

ecuador-farming

these organic cows.  Plus raw milk can be purchased directly… and at a low cost from the dairy keeping the cost of good living down.

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

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

Gary

Here are comments from one seminar delegate about the way we help: I really enjoy your Ecuador e-mail every day, especially because of the eclectic nature of the subjects. The recent postings on Loja were great, as my wife and I visited Loja for two nights and a day when were were in Ecuador last March. It is a beautiful town, and we met some very nice people there.

At our hotel the staff makes our own butter, marmalade and ice cream. Plus they love serving in beautiful ways. Here is how they set out the cutlery!  How can anyone not be charmed by such care.

ecuador-beauty

Sept. 17-21 Ecuador Super Thinking + Spanish Course

Sept. 23-24 Imbabura Real Estate Tour

Sept. 25-28 Ecuador Coastal Real Estate Tour

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

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

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

Oct. 21-24 Ecuador Import Export Tour

Oct. 25-26 Imbabura Real Estate Tour

Nov. 6-8 IBEZ Ecuador Seminar

Nov. 9-10 Imbabura Real Estate Tour

Nov. 11-14 Ecuador Coastal Real Estate Tour

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

Read the entire articles below:

White House Projects $9 Trillion Deficit

Social Security checks set to shrink in 2010

International Investment Purification


What is the difference between health and wealth? Not much, just WH.   They are very connected. Without good health, wealth may not last long…  nor is wealth very important when health fails, except to regain health.

We can apply an idea about having better health through purification, to enhance our wealth.  We can improve our wealth by removing toxic investments from our portfolio.

In a moment we’ll also look at investing in sustainable timber and see an Ecuador visa update.

sustainable-investment

Sustainable Timber.

First, let me begin with a purification health tip.

The tip is in the summer eat a watermelon.  Many ancient healing traditions (including Andean) view the body as having several elements including water, fire and air. Imbalances of these elements reduces energy, vitality, even leads to illness. The seasons too contain elements of fire, water and air. Water is predominant in spring, fire in summer and air in autumn-winter. Our bodies tend to accumulate these predominances during the season. In winter we have air imbalances (leading to dry throat called colds). In spring we pick up too much water (runny noses we identify as allergies, etc.). So at the beginning of each new season, it’s a great idea to clean the system out.

Watermelon is a cleanser of heat. During the summer the body accumulates heat.  Eat a whole, big watermelon if you can. This works in the summer when the flushing action removes excessive fire, water and air. The melon must be fresh, cut and eaten within 20 minutes. Watermelon is a sponge that absorbs and flushes free radicals from the system. If you let the melon sit after cutting, it oxidizes and loses its cleansing capacity.

Sound crazy? I thought so but tried it after watching a Shaman prescribe it for a woman suffering a severe rash (a summer fire imbalance). I felt so good, I make this a regular habit each summer. About once a month I eat only watermelon… three in a day if I can.

So how do we purify our investment & business portfolios?

One really simple tip for detoxifying your investment portfolio is to sell your losers and keep your winners.

This sounds awfully simple but forty years of working with investors has shown that most investors do exactly the opposite… except the pros. They all know… sell the losers.  Next time you invest, set a limit you will allow the investment to drop before you sell.  Stick to it!

The second trick is review your portfolio now. Are there any investments you hold that you would not buy right now?  Consider selling them. Take the loss and look for something better.

Another way to purify business and investments is to simply take a holistic long term view with expanded horizons.

Since we were looking at watermelon purification, let’s take investments in nutrition as an example.

Here is an excerpt from an article in Time magazine entitled “The Real Cost of Cheap Food” by Bryan Walsh:

Somewhere in Iowa, a pig is being raised in a confined pen, packed in so tightly with other swine that their curly tails have been chopped off so they won’t bite one another. To prevent him from getting sick in such close quarters, he is dosed with antibiotics. The waste produced by the pig and his thousands of pen mates on the factory farm where they live goes into manure lagoons that blanket neighboring communities with air pollution and a stomach-churning stench. He’s fed on American corn that was grown with the help of government subsidies and millions of tons of chemical fertilizer. When the pig is slaughtered, at about 5 months of age, he’ll become sausage or bacon that will sell cheap, feeding an American addiction to meat that has contributed to an obesity epidemic currently afflicting more than two-thirds of the population. And when the rains come, the excess fertilizer that coaxed so much corn from the ground will be washed into the Mississippi River and down into the Gulf of Mexico, where it will help kill fish for miles and miles around. That’s the state of your bacon — circa 2009.

The U.S. agricultural industry can now produce unlimited quantities of meat and grains at remarkably cheap prices. But it does so at a high cost to the environment, animals and humans. Those hidden prices are the creeping erosion of our fertile farmland, cages for egg-laying chickens so packed that the birds can’t even raise their wings and the scary rise of antibiotic-resistant bacteria among farm animals. Add to the price tag the acceleration of global warming — our energy-intensive food system uses 19% of U.S. fossil fuels, more than any other sector of the economy.

And perhaps worst of all, our food is increasingly bad for us, even dangerous. A series of recalls involving contaminated foods this year — including an outbreak of salmonella from tainted peanuts that killed at least eight people and sickened 600 — has consumers rightly worried about the safety of their meals. A food system — from seed to 7‑Eleven — that generates cheap, filling food at the literal expense of healthier produce is also a principal cause of America’s obesity epidemic. At a time when the nation is close to a civil war over health-care reform, obesity adds $147 billion a year to our doctor bills. “The way we farm now is destructive of the soil, the environment and us,” says Doug Gurian-Sherman, a senior scientist with the food and environment program at the Union of Concerned Scientists (UCS).

First Lady Michelle Obama’s White House garden has so far yielded more than 225 lb. of organic produce — and tons of powerful symbolism. But hers is still a losing battle. Despite increasing public awareness, sustainable agriculture, while the fastest-growing sector of the food industry, remains a tiny enterprise: according to the most recent data from the U.S. Department of Agriculture (USDA), less than 1% of American cropland is farmed organically. Sustainable food is also pricier than conventional food and harder to find. And while large companies like General Mills have opened organic divisions, purists worry that the very definition of sustainability will be co-opted as a result.

But we don’t have the luxury of philosophizing about food. With the exhaustion of the soil, the impact of global warming and the inevitably rising price of oil — which will affect everything from fertilizer to supermarket electricity bills — our industrial style of food production will end sooner or later. As the developing world grows richer, hundreds of millions of people will want to shift to the same calorie-heavy, protein-rich diet that has made Americans so unhealthy — demand for meat and poultry worldwide is set to rise 25% by 2015 — but the earth can no longer deliver. Unless Americans radically rethink the way they grow and consume food, they face a future of eroded farmland, hollowed-out countryside, scarier germs, higher health costs — and bland taste. Sustainable food has an élitist reputation, but each of us depends on the soil, animals and plants — and as every farmer knows, if you don’t take care of your land, it can’t take care of you.

Big problems create opportunity and investments in apparently obscure but sustainable food and energy ideas can help take toxicity out of your business as well as investment portfolio.

Sustainable may not seem profitable now… but neither did Microsoft when the idea of individual PCs began.

Sustainability is vital to our future. Sustainability is a huge problem and hence opportunity so though it will not arrive overnight…this is a sector we can invest in to detoxify our wealth.

Since we are connected to our investments… this process will also help us learn to eat and live better and help purify our health as well.

Sustainable Tables

Another way to purify your portfolio is to look for opportunities where you invest your own energy as well as your cash… like we are doing with our value added sustainable timber below.

Here is one little idea we are trying in our new little Blue Ridge Crafts business.

For years I have written that timber is a great investment.  Timber is the only commodity where the supply increases even when demand is down.  All you have to do during bad times… of low demand… like now is don’t sell.  Your timber continues to grow!

Now we are doing a business using dead timber and adding value!

We are turning dead wood, like this poplar log, into a business.

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This poplar sitting right behind our house died a few years ago and dropped branches on the house all winter. This spring we trimmed off the branches and last week brought it down… cut it in three pieces and dragged them to one of our fields.

We set up a portable mill and…

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cut over a thousand board feet of nice poplar planks.

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We also…

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cut one huge 13 foot long slab for a table top so if anyone is interested in a 12 foot poplar table… that you help design yourself… let us know.

This is a pretty small step towards sustainability but if we all think about ways to purify our investments, our business and body, our health and our wealth…at the big level and small will improve.

Ecuador Visa Update

A reader who travels frequently in business asked how to handle  the fact that Ecuador immigration policy does not allow a new resident to leave for more than 90 days a year for the first two years.

We checked with one of our Ecuador Living advisers, an attorney who specializes in immigration, who replied:

Please notice that in theory all resident visas come with the obligation not lo leave Ecuador for more than 90 days a year in the first two years.

Nevertheless, please be advised that authorities until now have not automatically removed a resident visa for this matter.

We have noticed that once the visa is stamped and if the passport is valid for more than two years, then you do not need to go to the Ecuadorian immigration authorities for anything else. This reduces the risk of the authorities reviewing how long you have you been outside of Ecuador during the first two years.

A good number of our clients have obtained the resident visa and have been outside of Ecuador far more than the 90 days with no complication whatsoever.

Anther option is to travel into Ecuador on a tourist visa which allows a stay in Ecuador for up to 90 days every year and this can be extended  for 90 days more.

Whether you want to live, do business or and invest in Ecuador, Smalltown USA or anywhere in the world… if you think sustainable, you are thinking… the future. This is a great place to be.

Gary

How We Can Serve You

How to Have Real Safety

Regain Real Security

There is a path to true security.

I was reminded of this once when I made a horrible mistake.  Almost!

The supposed error?  Letting my mind wander six decades back to an hour I spent with a girl.

Learn from this near disaster, seven most powerful sources of wealth, health, security and fulfillment in this era.

The girl was pretty and blond.  Terry was her name. My imagination spanned decades returning to my Oregon roots seeing her as if she were there.

We were 11 or 12 and had known each other since we started Rockwood grade school.  Just buddies, our non-romantic friendship lasted 12 years, from first grade till high school’s end.  Then she went off to Pepperdine College in California.  I started traveling the world.  Never saw her again.  I hope her life has gone well.  But until that reflection I’d never thought much of Terry in so many years.

What could have been the tragic error was letting that memory touch my heart.  Two kids, walking on a crisp, Pacific Northwest autumnal afternoon.

We walked down a sun filled, pine needle covered, dirt path.  Huge, fat, green Douglas firs lined the road.  Traffic was no problem, not many cars.  Crossing Stark Street we turned left, hiking three blocks to 182nd.  There we passed an old clapboard candy store.  I can still hear the wooden sidewalk of that store slap beneath my feet, felt the soggy planks sag and smelled astringent pitch from the fir trees.  Then we turned right, up 182nd for about a mile.  There was Terry’s house.

I carried on, walking through a big field, waist high grass turned straw brown by an early frost.  There were dozens of paths made by who knows what.  Animals perhaps or countless generations of other kids walking home alone from school.  I chose one following it to another wood of tall, rough-barked fir.  Crossing one more field, I climbed a rock wall, struggled through a barbed wire fence (my Mom hated that fence ripping my jeans).  I was home!

Sweet simplicity, that dream.  Two kids holding hands, walking on a dirt trail under a crisp, but blue, sunny sky.  Pure innocence.

My tragic error was looking back.  I returned to Rockwood, Oregon with Merri and my kids to show them this part of their roots.  Following the route, Terry and I had walked were the candy store, grange hall, old wooden buildings and their home spun honesty and charm.

Instead we found six lanes of fast, frantic traffic and road rage.  McDonalds, KFC, strip shopping centers.  The car radio blared warnings of local gangs and drive-by-shootings. Beauty, innocence, sweet simplicity, replaced by drive ins and drive bys.  Gangs and drive-by shootings replacing a tender walk in the sun.  Good bye memories, good bye.

How can our kids walk in places like this?  How can we return to those old feeling of security and comfort?

How can any of us possibly keep pace in this world that’s moving so fast?  Then something inside snapped. “There has to be an answer for honest, hard working folks to enjoy the wonderful opportunities of today and regain what we’ve lost over the past forty years”, I swore to myself.

How can we keep up, without having such a fast paced life we turn into machines?  Where do we find time for God, family, charity, and our friends?  How can we rediscover those sun filled, pine needle covered, dirt paths we want to walk?

“There has to be places that are still innocent and pure”, I thought.  “There has to be a way of life that does not pound us with stress”.

This thinking led me to begin reviewing the thousands of economic and business experiences I have shared with readers over the decades.  This started a search for a simpler way of life and a better place to earn and protect our wealth.

By digging, asking and observing, traveling and talking to investors and investment managers all over the world I found that there are true paths to real security in the here and now.  That knowledge helped me develop courses on how to have natural health, everlasting wealth and purposeful investments.

This knowledge helped Merri and me invest in stocks and real estate all over the world.  It helped us find and develop Merrily Farms into a sanctuary here on Little Horse Creek.

That almost error led us to create an entire portfolio of information on how to keep pace, get ahead, enjoy our modern society but, to enjoy life wherever you choose without having to move too fast.

This is why I am making a special three day “Let’s get our lives back offer”.

“What would you think in the last 30 seconds of your life if you were the richest man in the world but were unhappy?”

This quote is from the opening slide of our Value Investing Seminar, “How to Secure Your Future With a Value Breakout Plan”.   This a vital question because few investors think about the value of comfort and happiness.  Yet the truth is, those who are comfortable and happy with their investments are most likely to make good investment, business and lifestyle decisions.

Without comfort, no matter how much money a person has changes are, they’ll eventually lose it or kill themselves with stress from worry.

There is a way to have the perfect form of financial security.  Let’s call it the perfect pension.  To help understand how to build an unshakable economic platform, here is Part One of the report, The Pruppie Factor.

The Pruppie Factor – Seven Steps to Comfortable Living & Profits.

“May you live in interesting times”.  That’s a Chinese curse that seems to have been cast on our modern world.  We can enjoy comfort and profits in the year ahead despite this fact.

Become a Pruppie.  Integrate your earning with your investing and enjoy peak living, everlasting wealth and natural health with PIEC Investing in the year ahead.

Before we look at what PIEC means, let’s delve into Pruppieism, the new economic and social realism.  Pruppies expect everything to expand.  They take advantage of every new benefit and technology they can.  Pruppies enjoy using the fruits of our ancestor’s deliberations and labors to earn in this advanced technological world.  They also engage in activity that they love that would sustain them in case society and the incredibly intricate weave of our global economy and society should fail.

Pruppies are prepared in case everything, everywhere, or at least everything relating to their income and savings fails and the fabric that surrounds their lives disintegrates into an unknown veil.  Yet a Pruppie’s preparation is not a sacrifice, but a joy as you will see.

Hope springs eternal and it should.  One of the key themes in my first book, Passport to International Profit, (published in the 1970s) was “The Sun Always Shines Somewhere”.  This thought has been in and remains a foundation of everything I do.

Sometimes this sunshine is hard to see because the press always focuses on doom and gloom.  Current news often makes the world seem about to end.  We cannot blame the press. Bad news sells.  The majority seem to want to worry instead of learn about all that’s good.  This does not make doom and gloom right.  This is why the majority are also the rich portion of the population, but bad news is an economic fact for the press.

Yet despite all the negative headlines, we have lived through the Cold War and MAD, Y2K, GridX II, the Peak Oil Crisis, the recession of the 1970s, 1980s 2007, etc. etc. etc.  Chicken Little is always out there, selling the falling sky.  Don’t buy into this story!

History suggests that there will always be opportunity.  The sun always shines somewhere.

Brexit, global warming and the election of Donald trump as President of the United States are 2016 examples of how the press gravitates to negative news.  These three events may be bad news or not.  The future will tell, but they are examples of how the media focuses on tiny parts of our infinite existence.  They can make anything and just about everything seem negative.  This can blind us to the positive realities ahead, if we let it.  Don’t.  Expect that the world will remain standing and look for opportunity instead!

Our wealth and economic opportunity is pushed by supply and demand.  We are part of a growing global population.  New technology makes more people, as a whole, more productive every day.  The world has increasingly larger markets creating more supply in increasingly efficient ways.

This reality increases everyone’s wealth.  Yes there is a lot of bad news in many places.  There is inequality.  There is crime.  There is war and hate and injustice.   Despite these negatives there is even more that is positive.  Opportunity grows.

Pruppies tap into and use every bit of the good news they can.  They have a plan B if everything goes wrong, but Plan B is based on something a Pruppie wants to do we love, not just a shelter from bad news.

At the end of this report, you’ll find three day special offer that can help you integrate earning and investing for the ultimate form of profit and safety.

Imagine this example of Pruppism.  The Tiffany lamp casts an amber glow, rich, ivory and warm in the grey gloom of early dusk.  The gold knobbed mahogany desk, its deep patina waxed and smooth, shines with reflections of ancient leather Chesterfields stuffed full, but rumpled with age and of maritime shots that hang in brass frames on the wall. The room speaks of settled tradition, the kind that might never end.  But thoughts instead are on the demise of the business that has supported this room.

The late Jim Slater of Slater Walker, a British industrial conglomerate turned bank in the 1970s was in that room.  I recall his bank’s collapse well as I was living in Hong Kong and Slater Walker was a huge going concern in what was a British colony in those days.  The Slater Walker crash was big news that unsettled the entire British banking system at the time.

Slater, the founder, had been a really high roller, using every modern banking tactic available including buying many assets with cheap loans.  Then in the mid 1970s banking crisis interest rates skyrocketed and his bank was unable to refinance its debt.  The company failed and Slater had to resign.  Numerous charges were brought against him and he spent considerable time defending what he had done.

In the end he was only fined a nominal sum but despite this, his banking career was well and truly dead.

However he had already moved on.

He wrote about this in his autobiography, “Return To Go”.  He had always had a hobby making puppet shows and telling stories to his children, so instead of banking, he turned his passion into profit and wrote some children’s books.  His first effort sold a respectable 35,000 copies.  His next a monster series for younger children, became a huge hit.

He had also maintained a hobby of salmon fishing so again turned his passion into profit by creating a business that bought up fishing rights and resold them as time-shares.  He had quite a success.

Some day a catastrophe beyond our control could redirect the course of our lives.  We might lose a job, learn that our pension won’t pay or that our dollars won’t buy as much as they must.

Though Jim Slater was a banker, outside economic forces beyond his control caused his business disaster.  Yet he had options because he had been doing things he loved that were not related to his banking, but could become useful income generators in difficult time.

I do not know if Slater understood Pruppism but that’s what he was practicing.

Pruppism is a positive realism based on the knowledge that much of our lives are directed by events that we do not know or expect and could not change them even if we did.  There is always something we do not know and that’s okay.

Years ago I was speaking at an investing seminar in Marbella Spain.  One of the speakers was a brilliant strategist, Johan Peter Paludan, of the Copenhagen Institute for Futures Studies.  This institute has a large interdisciplinary staff with expertise in economics, political science, ethnography, psychology, engineering, PR and sociology.  They identify and analyze global trends that influence the future.  Paludan was speaking of these trends and answering questions that delegates had about the world’s economic future.

One delegate asked what to do if there was a global nuclear exchange.  Paludan replied that the results of some events are so unpredictable that it is not worth trying to plan for them.

This thought has stuck with me for decades because it helped me realize that no matter how cautious, how defensive and careful we are, there are events that we cannot even imagine that can turn our lives upside down, for the good or bad.  With this in mind my wife Merri and I have created a lifestyle where we turn our passions into profit but in a way that whatever happens we are likely to be in a position to spot the positive and the opportunity.

A PIEC Experience

Pruppies gain the benefits of PIEC wealth.  PIEC is an acronym for “Personal Income Earning Corridor”.  PIEC income and wealth come from doing what you do for love, rather than just the money.

Traditionally people get jobs to create income.  They work to live and support their lifestyle while attempting to spend less than they earn.  They hope, that maybe the savings will bring, sometime in the future, a lifestyle of doing something enjoyable without work.

Pruppies reverse the priorities.  Instead of working for money to save and invest, they focus their prime effort on doing something they enjoy right now.  Then they learn how to enjoy the effort in some profitable way.  They learn to create “Avenues of Abundance” that combine lifestyle with the necessary task of accumulating wealth.

If economic circumstances tie them to an existing income effort, they create hobbies that are income producers of the future.

For example, if a Pruppie loves golf; instead of working six days a week, 50 weeks a year just to golf on Sundays and during short vacations, instead he or she will create a business in some aspect of the golfing trade.

In another example, a client of mine, who loved animals became a vet.  But he learned that the vet’s lifestyle was not one he enjoyed.  He wanted to travel and move around, which is difficult for a professional who needs to stay at his office and build a practice.  So he built a business that prepares special animal foods for race horses.  Now he travels globally visiting horse breeders and makes much more money as well.

Pruppies combine money with time, energy and desires.  They generate income doing something desired.  Desire and fulfillment become at least as, if not more, important as the money.

#1: Do What You Love!

The reason PIECs work well is that when we love to do something, we do it better, for longer and with greater enthusiasm.

Effort, determination and tenacity are wealth building attributes that cannot fail.  Yet Pruppism does not mean we should suddenly abandon our jobs and try becoming golf pros, when we have never been able to break 100.  Smart Pruppies start small and gradually expand into their passion.

For example, as a writer and lecturer, I was never fully satisfied sitting behind a desk or standing on a podium all day long, even though I was making over a million bucks a year. I’m the physical, outdoors type and yearned for exercise and the wilds of the deep woods. “What good’s the money if this isn’t fun?” I often asked myself.

Rather than quit writing and teaching, I looked for ways to combine these professions with the outdoor life.  Through research I learned that many city folk like myself yearn to be in the primitive outdoors.  So I bought an isolated farm high in the Blue Ridge Mountains and an Andean plantation high in Ecuador where I developed seminar centers with charming but simple dwellings, set in rustic surroundings, with clean water and pure air.  Now I live in nature so after I finish the writing or talking, I can walk in the woods or take my axe and chop firewood or something physical.  I’ve combined my writing with physical work and have blended the life I want, with my readers’ needs in a way that makes great financial sense.

We built a series of cabins in the wild that bring more profits than most stocks or bonds could ever return.

The process took six years to shift. Now we have been at this for nearly two decades and we are far from finished.  But while doing what we love, who cares? This is one of the great benefits of PIEC investing. We can slow down and enjoy the work instead of always rushing ahead, looking for something more.

Those who work nine to five can start PIEC businesses part time if they are too uneasy to quit their jobs. Others, who like myself, already have a business can slowly shift their product or service in a sensible way and let it evolve toward their PIEC.

But where do we start?

There is a seven step process we can all use whether we have our own careers, a business or even if we are retired (PIEC investing is especially good for retired folks who have found the supposed good life flat or financially short).

The first step is to get a clear idea or vision of our dream.  This is sometimes harder to achieve than it seems.  We are so deluged with false ideals from Washington, Wall Street, Madison Avenue, etc. that we have to stop and really take stock.  What do we sincerely want?

There is a very practical economic reason to look inwards for wealth.  Warren Buffet recommends that we only invest in what we understand. What can we understand better than ourselves?

This inner search will lead us to an ideal that begins the second step which is gaining enthusiasm.  How can we be anything but enthusiastic about finally fulfilling our deepest dreams?  The enthusiasm leads to the third step; gaining an education.

We need to find out everything we can about our idea.  To succeed we must take the third step and become real experts in the product or service we offer.

Fourth, this educational process allows us to develop an intelligent, focused business plan we can act upon and the action is the fifth step which brings us the experience. Experience gives us the sixth step, a financial loss or profit.  We always profit in increased knowledge which creates the seventh step, more ideas.

Then the entire cycle starts all over again: Idea, Enthusiasm, Education, Action, Experience, Financial Profit and New Ideas.

This is a way to keep adding new opportunities into our lives.  Business is rarely static. It is an ever evolving process instead.

This seven step cycle may take days, weeks, months or years, but the moment you begin you’ll start moving into an avenue of affluence where you love your work so though money isn’t your main goal it comes more easily.

#2: Do what you love, but also be of service.  Do something for others that is meaningful and important to you.

We all have a purpose in life and when we are filling it, we feel fulfilled.  Wealth and fulfillment is the goal.  Fulfillment is important because of the law of diminishing returns.  A 2008 study that analyzed Gallup surveys of 450,000 Americans suggested that day-to-day contentment improves until income hits around $75,000 per annum.  After that, more money just brings more stuff, with far less gain in happiness.  Income beyond $75,000 does not do much for a person’s daily mood.

This is a pretty general study and regional differences in costs, inflation and life circumstances will create many fluctuations from this norm, but the point is when money is the main goal, the better you get, the harder it will be to gain satisfaction.

Giving, on the other hand, never has limitations, especially when the giving helps complete a purpose that is part of our destiny.

This is true in business and investing.  A study of investors for example found that investors with socially responsible ideals gained the best returns.  A dual goal of profit and achieving some social benefit provides a purpose beyond returns.  This brings comfort and determination to the investments and the added stick-to-it-ness helps increase profits.

The financial giant State Street Corporation’s Center for Applied Research did an 18 month study of 7,000 investors to get a better understanding of the role incentives play in making investment decisions.  Based on this study a new measure of investment performance called “Phi” was created.  Portfolios were previous rated by their Alpha, Beta, and Gamma. Phi is the newest measure of performance.

Alpha measures an investment’s performance against a market index.  If the Standard & Poor’s 500-stock index is up 10 percent and a mutual fund is up 15 percent, for example, that 5 percentage point difference is alpha.

Beta is the return of any given market.  And charting beta is what a passive index fund does.  Comparing different indexes’ beta — say domestic equities and international bonds — helps investors in deciding how to allocate their investments.

Gamma is a measure of the impact on returns of more intelligent financial planning decisions.  A Gamma rating quantifies the additional value that can be achieved by optimal asset allocation, a dynamic withdrawal strategy, incorporating guaranteed income products (i.e., annuities), tax-efficient decisions, and liability-relative asset allocation optimization.

What phi aims to add is a way for investors to quantify how their motivations — or those of the people managing their money — will affect long-term investment returns.

The study examined what motivates a person to invest — or not and found that main investment motivations are market-based motives, the most frequent and powerful being fear in the market.  Both market motivations, the prospect of profit and the fear of loss, can have a negative effect on long-term performance.

A deep sense of purpose is what causes a high phi score.  A high phi factor is not about outperforming markets or peers, and it’s not an asset-gathering measure of performance.  Pi performance is defined as sustainable investing with a deeper sense of purpose.

People who invested with socially responsible ideals did best in the study.  The dual goal of profit and achieving some social benefit provides a purpose beyond returns.  This brings comfort and determination to the investments.

The study helped define three aspects of investing that are generally ignored, purpose, habits and incentives.

Purpose.  Purpose requires some soul-searching questions about what we each want our life to be.  This purpose is more important than the investment goal.  The purpose of the money we have becomes more important than the amount in the portfolio.

Habits.  Habits come next because we need to create habits and routines that keep us on the path of our unique purpose.  The marketplace does all it can to distract us from our goals.  There is an endless stream of news, rumor, conjecture, facts figures, ideas and tactics generated by every part of every stock market aimed at getting us to act in ways that benefit the agenda of others.

Habits help us avoid being distracted from what we are meant and want to do.  The muffle the noise of Madison Avenue, the spin from Washington DC and the hidden agendas of big business.

Incentive.  Changing incentives to accomplish a purpose instead of a numerical (percentage or profit) goal helps us adopt better behavior.  We react to accomplishing our meaningful purpose instead of drama created by media as well as manipulation and short term whims in markets.

The study showed that changing incentives in this way improved phi when they had a meaningful impact on a person’s investment strategy.

The study found these facts: Every one-point increase in people’s orientation toward investment goals with a purpose — and the scale is 0 to 3 — equated to 42 percent greater odds that the investors know what they are paying in fees, 37 percent greater odds that investors are not rejecting their financial adviser, 38 percent greater odds that the people consider investing in socially responsible investments and 79 percent greater odds that investors will trade less frequently, the research found.

As in so many others cases, two of the most important factors of success are keeping costs and trading activity low.  These are among the most powerful ways to increase wealth.  Having greater fulfillment as well as more wealth is a bonus that Pruppies call “Everlasting Wealth”.

Figure out what is really important in life for you and then find ways to invest in that purpose.  When you do, you’ll be on a solid path to everlasting wealth that is not so easily diverted by the daily drama that seems to be unfolding in the modern world.

Learn to focus your investments using purpose as the most important investment goal.  The purpose of money becomes more important than the amount.

Learn how to create habits and routines that keep us on the path of our unique purpose.  The market will do all it can to distract us from our goals.  Understand that many banks, brokers, the media, the government and commerce all have agendas to take our money, not make more for us.   Good wealth habits and routines protect us from this.

#3: Integrate your earning and investing. 

Long term success in business and investing are determined by control and comfort.

Comfort comes from feeling in control, but since there is always something we do not know, real comfort comes from knowing that we are serving a valuable purpose, the best we can, regardless of how events unfold.

Real comfort helps maintain determination, dedication and enthusiasm, all among the most vital parts in the process of succeeding in investing and business.

Our own business increases comfort because a business is simply an investment that gives us more control due to the addition of our own time and energy. 

A Personal Income Earning Corridor (PIEC) begin with a main income generator that we control.  For some this is a job with a salary.  For others it is a pension. For many it is their own business.

Integration of business and investing is important because investments are not always good income generators.

Years ago I managed an investment portfolio for Canada’s largest private investment management firm.  One day, during lunch with the president of the firm, we discussed the difficulties of professional fund management.  He explained that one of his biggest problems was the excessive expectation of customers.

“I have a retired client who has a million dollars”, he said.  “The client wants $90,000 a year to live on.  In a good year, we might earn 11%.  The client can take 9%. Our fee is 1% and the client’s fund increase by 1%.  In a bad year, we might earn 5%. The client takes 9%.  Our fee is 1% and the client’s funds drop by $50,000.  In the next year the client has even less to work with so a withdrawal of $90,000 may be more than 9% of the portfolio.  The client tends to take even more in good years, but never reduces the demand in bad years.”

The number one golden rule of investing is that there is always something we do not know.  Risk is always our partner.  When we invest, there is always potential that will negatively affect our financial welfare.  Our investments might rise or fall because of market conditions (market risk).  Corporate decisions, such as whether to expand into a new area of business or merge with another company, can affect the value of our investments (business risk).  If we own an international investment, events within that country can affect our investment.  There is both political and currency risk.  There is liquidity risk because we may need to draw on an investment at a time when it price is low.

Plus there are broken promises.

We live in an era of broken promises.  Defaults could ruin most average retirees and even investors.

A look at government, social and currency breakdown at its worst can help us see the problem.  Germany is an example when it borrowed heavily to pay WWI costs.  Such borrowing almost always leads to currency and social erosion and this did then.  Right after the war there was some stability, before government spending began to run wild.  By 1923, it reached the worst in history.  This caused prices to sometimes double in hours. In Germany by late 1923 it took 200 billion marks to buy a loaf of bread.

Hard-working people with modest spending habits could not even buy a postage stamp with their life savings.  All debt was wiped out but so too were all savings.

Salaries were paid three times a day yet shops were empty.  Food riots raged. Businesses closed down, unemployment soared.  The economy collapsed.

Anyone on a fixed income was destitute.  They sold everything just to buy food.

Small businesses however survived because they could hold material things such as clothing, food, anything people could consume. 

Recent news about Social Security, pensions and health care shows that the US government has excessive debt today and that we as individuals need tactics to make sure, when governments, pensions and insurers weasel out of their promises, that we can take care of ourselves.

One big broken promise is Social Security and Medicare.  The most recent Social Security trustee report shows that the programs will begin to spend more than they earn within just three or four years.   The Medicare hospital-insurance trust fund, could use all its reserves by 2028.  They face insolvency over the next 20 years because Social Security runs totally out of money by 2034.

This is a bigger problem then it may seem because it creates an even bigger broken promise concerning the US dollar.

Medicare and Social Security already account for 41% of federal spending.  That was the expenditure last year.  This is not a static problem.  Each year that percentage is growing worse.  This creates a special risk for the dollar because Social Security’s reserves are not really assets at all.  The purported assets are simply IOUs from the US government.

Social Security assets are a liability of the government, so eventually the money comes from the same place as all other government expenditure, taxes or federal debt.  This means that if Social Security has to sell an asset, then the government, already overburdened by debt, will have to borrow the money from somewhere else.

If the Fed cannot raise enough money to pay Social Security only two options are left, devalue the greenback or don’t pay.

When Social Security was established in 1935, the President and Congress imposed taxes to pay the promised benefits. Thirty years later politics had changed.  When Medicare was established in 1965, the government took credit for the popular health coverage but left the payment problem for future generations.

President Nixon and Congress also enjoyed the popularity of they increased Social Security benefits  in the 1970s but left future generations the bill.

The public has not been fooled.  A survey in 1964 found that 77% of the population answered yes to the question “Do you trust the government to do the right thing “just about always” or “most of the time”.  Only 19% answered yes in 2015 according to Pew Research.

Yet what can individuals do other than what we have, voting in new administrations?

Voters attempted to create change in 2008 with a new administration.  The election process and result of 2016 suggests they were no pleased with the results. 2017 and beyond may be “interesting” years.

There should be little wonder that Americans have stopped trusting politicians who promise benefits to get and remain elected but leave the burdens of paying for the promises to pile up waiting to sink the next administration.

This problem has grown so large that in 2011 Federal Reserve Chairman Ben Bernanke “maintaining the status quo is not an option. Creditors will not lend to a government whose debt, relative to national income, is rising without limit.”

In 2014 Federal Reserve Chair Janet Yellen told Congress that more work must be done “to put fiscal policy on a sustainable course.”

If the government does not resolve this problem soon, then the world of lenders will.  If the US has to raise interest rates to continue attracting loans, a downward spiral will grow.  Higher rates create greater debt and greater debt demands higher interest payments. The costs will be catastrophic.  As investors flee US bonds and T-Bills for safer investment, the US dollar will lose purchasing power.

Social Security, if paid and even if paid in the same amounts as before, will buy less.  If Medicare stops working then all that’s left for backup is Obamacare and the private insurers in the plan.

This is another broken promise.  When United Health Group, the nation’s largest health insurer, recently announced that it was pulling out of Obamacare insurance the public learned that it will face higher premiums.  Many will need to choose a new plan, change doctors and hospitals as well.  United Health is not the first or only insurer to quit. A dozen nonprofit health insurance cooperatives shut down just last year.  The giants Aetna and Blue Cross Blue Shield are even considering a drop out.

If Social Security and health care promises are broken that just leaves our pensions. Right?

Yet if we look at the Pensionrights.org website we see hundreds of corporations that have reduced pension benefits including the likes of Honda Motor Co., Ltd., Allstate Corp., Coca Cola, Boeing, Caterpillar, Kraft Foods, Hewlett Packard, Fedex GM and GE to name a few of over a hundred.

This problem is not limited to corporate pension.  An Economic Budget Issue Brief issued to Congress from the CBO (Congressional Budget office”) says:

“By any measure, nearly all state and local pension plans are underfunded, which means that the value of the plans’ assets is less than their accrued pension liabilities for current workers and retirees” CBO.

The report shows that even five years ago the short fall of State and Local Pensions was over 3 trillion dollars, more than all other state and local debt

That leaves the Pension Benefit Guaranty Corporation (PBGC) as a safety net.  In the 2015 PBGC’s annual report the Director’s message says:  “One of the most important functions of PBGC is assuming responsibility for pension plans when their sponsors can no longer keep them going.  We insure the benefits of more than 40 million workers and retirees.  Currently, we pay more than 800,000 people each month.  An additional 585,000 workers are scheduled to receive benefits from PBGC when they retire.”

But if you look at the first paragraph of the Financial Report in that annual report you see:

“PBGC’s combined financial position decreased by $14,577 million, increasing the Corporation’s combined deficit (net position) to $76,349 million as of September 30, 2015 an all time record high from  $61,772 million as of September 30, 2014”.

Every step along the way we see shortfalls, debt with little hope of repayment and an economic overhang that will eventually create broken promises at every level from the pensions, healthcare, Social Security and most from a falling US dollar.

These facts will ruin the life styles of millions, but not all.

In short, there is risk in even the safest investments and there is a possibility that a negative financial outcome might occur.

This is why multi dimensional business opportunities make sense.  You can profit from expanding your utility.  The US currency may fall but your business can offer valuable, needed services or products that will be worth more than gold.

You can gain from having a source of income in a place where you have the best chances of control.  This is why for centuries… small business have had a home upstairs and business below, so the owner could control their business.

Those who profit most in changing times are those who add new dimensions to old time proven ways.  Modern technology offers many exciting ways to create multi dimensional profit and can earn income at home.

When you have your own business, you reduce the need to place excessive demands on your savings and you reduce the risks of broken promises especially when your have a multi dimensional business with multiple streams of income.

At the end of this report, you’ll find three day special offer that can help you integrate multiple streams of income and investing for the ultimate form of profit and safety.

Merri and I aim to create multi dimensional opportunity wherever we live.

In Florida we bought a house and an orange grove next door.  Then we added a rental unit.

In North Carolina we bought a farm, then we added a seminar center, rental units and a trout raising business.

Products and services of essentials, food, clothing, shelter, protection and good health are the real golden assets in the worst times.

Imagine the scenario where our entire structure melts down.  “See the man who has just come in to get some milk for his family.  He stares at the rows for canned milk.  They were empty. Cleaned out.  He closes his eyes.  The world spins.  He snaps his eyes open and checked the rows again.  They are still empty.  He feels oddly betrayed.  Grocery stores are the supports of life.  When you need something you come here.  This is a fact of life in today’s world.  How can he not take this for granted.

“He rushes to the dairy case.  That’s empty too.  He runs to other shelves and sees shoppers piling up food, any food they can grab, throwing entire rows into their carts.  He is pushed and shoved in a mad rush to take any remaining food.

“The man speeds off to the nearest Dollar Store but finds the parking lot filled, lines waiting just to get in the door.”

Just one disruption in the supply line and in a day, the stores were empty. Our modern world is so intricately connected and stores operate on a just-in-time inventory control system.  When you buy anything a computer orders more and it comes next shipment, next day. One glitch in this complex system, one short break and the shelves rapidly go empty.  The barer the shelves, the faster everything goes.

Yesterday everything had been normal. Suddenly there was no milk anywhere.

The man’s tale is imaginary, but the fabric behind it is not, as the real story below shows.

In September and November of 2016, the Colonial pipeline that supplies millions of people with gasoline was shut down.

In November, one simple error caused the disruption.  A track hoe digging for utilities accidentally struck the pipeline, ignited gasoline and caused an explosion.

In September there was a leak (over a quarter million gallons of gas) that caused the disruption.  While shut down, so many people rushed to the gas station to fill up that it created a panic and shortage.

I spoke with the owner of the local gas station we use. He said people were lining up to fill their cars, gas cans and even large tanks in pickups.  He had to limit sales.

A shortage of just about any essential quickly creates panic.  In the pipeline disruptions motorists running to gas stations deviated from their normal consumption habits at the pump and quickly exhausted existing supplies.

There was still plenty of gasoline, but the ability to transport the product to North Carolina (and four other states) was restricted.  Loss of common sense, civility and safety flew out the window within hours.

This was despite the good news that there are two pipes that run side-by-side.  Only one was ruptured, so the disruption was not as bad as it could be.

The September leak, just one small problem in just one pipeline led to days of dry pumps and higher gas prices in Alabama, Georgia, Tennessee and the Carolinas while repairs were made.

Five states are so dependent on just two side by side  pipelines that their shutdown can create panic for millions of people in under one day.

Merri and I make each of our houses multi dimensional…a home and a source of income from some essential product.

Governments are going further into debt globally.  This creates serious debt and economic problems everywhere.  These burdens mean that governments and societies lose their ability to keep their promises.  Multi dimensional earnings can help overcome the risks these conditions create.

Our website has long shared the idea of multi dimensional business, investing and living.  We have looked at the idea of living as a landlord or the idea of multi dimensional writing and farming or Ecuador farming with B&B, plus Ecuador B&Bs on the beach or in the Amazon to name a few.

Multi dimensional opportunity earns in numerous ways.

Merri and I have always created multi dimensional opportunity in our global travels.  We have united self publishing, seminars, tours, real estate, teaching, currencies, investing and real estate to enhance our income and living.  For example in London we converted a house into an office and bedroom time share. We found special currency deals that helped.

I came across this (one of my first) multi dimensional opportunities when I wanted to finance a house purchase in London.  My business plan was to create a small office-apartment complex.  I would live in part of the house, have an office in part that I would share with a number of my readers.  The deal was aimed at helping overseas businesses people have an office and a place to stay when they were in London.  I set up a club something like a timeshare.  Not quite a timeshare but close enough.

My track record with the bank was good and I had always repaid loans.  Yet the policy at that bank was “timeshares are no-nos”.  I could almost see the glaze come over my bank manager’s eyes as I explained the project.  It was the look that said “No matter what you say, the answer will be NO”.  Once a manager thinks that what you want is against company policy, it is better to do something realistic like climb Mount Everest on a lunch break.  I come from a family of modest means and had no relatives or friends with the cash to start the deal so my alternative was to find overseas investors.

After making the necessary polite motions with my banker and letting him do likewise, I thanked him for his time and was preparing to leave.

Then he said, “By the way let me show you our new American Express Gold Card plan”.  The bank had just started to offer credit cards and they came with a 7,500 pound unsecured overdraft.  He told me that overseas investors could have these as well as local investors and customers.

Overdrafts are a peculiarly British line of credit that allows you to borrow up to the limit of the overdraft without any regular payment plan.  The banker sort of expects to see the amount borrowed rise and fall.  The borrower just pays interest on whatever amount is owed and on occasion the bank reviews the overdraft with you.

At that time one pound equaled about 2.2 dollars so this meant that everyone who obtained this credit card received a $16,500 dollar unsecured line of credit. $15,000 was the amount I was charging each member who joined my London office-apartment club!  I immediately saw how to use this to attract overseas investors.

I wanted 50 members at $15,000 each which was double the $375,000 I needed to buy and develop the property. I saw how to turn my customers into my overseas investors.

My head was spinning as I left the bank.  The bank would not give me a $375,000 loan secured by property.  Yet they would lend my buyers of the club the full price of membership on an unsecured basis.  All I needed was get half my buyers right now on a nothing down pre -purchase deal.  This is exactly what I did.  My customers became my overseas investors.

I hustled out, called my customers and offered them this deal they could not refuse.  “Join our club now and you get an American Express gold card.  The bank will lend you the money unsecured for your club membership.  Pay it back when you can.” 

That was a deal that few overseas investors could refuse.

This was a much better deal for me than borrowing the money from overseas investors to start.  The original 25 sales were financed by the bank.  My customers had to pay the money back, not me.

My clients loved me for this deal.  The British pound collapsed shortly after.  That 7,500 loan that created over $15,000 became much less expensive…. barely $10,000.  Those who borrowed made about $5,000 (33%) forex profit on the loan as well as the good real estate deal.

They made such a profit on the currency change I wrote a report about it and earned additional income from the report sales.

In that real example, I used my writing to enhance a real estate deal.  The real estate helped me promote my seminars and sell a report plus I ended up with a income and a wonderful central London house to live in.

There are many multi dimensional real estate opportunities, land that offers a low stress, healthy home, farm income and other profit potential all at the same time.  Merri and I sponsored many Ecuador real estate tours to help readers buy multi dimensional real estate like Ecuador beach farms that provide rentals and farm income.

When investing and business are balanced the building of wealth becomes a more fulfilling, enjoyable process of service.  Great financial rewards are an extra benefit rather than ultimate goals.  Worries about money become less dominant and we gain an inherent power because we want to work harder and longer.  We don’t need to search (and spend) so much for fulfillment and are more likely to excel financially.

Three Layer Financial Plan

Having our own business allows us to operate at peak performance and create a PIEC (Personal Income Earning Corridor).  Having a PIEC business does not mean you should put all your money in just your own business (though at times you may).  Diversification is always good.

PIEC portfolios come in three layers, first the personal business, then a layer of very safe investments over a third, much smaller layer of speculative deals.

The majority of PIEC diversification beyond our business should be in stodgy, liquid investments such as utilities, CDs, bonds and good value equities.

I prefer Country Index ETFs that provide diversification into entire equity markets.  These investments might pay little in the short term, but are safe and they are highly liquid at a known price.  The low return on these investments is acceptable because they support your PIEC business which maximizes profits and adds comfort like few other investments can.

These very safe investments act as reserves if your business hits a sticky patch and can provide ready finance if sudden business opportunities arise.  They also don’t take up much time in research, accounting, watching the market, etc. so you can devote your energy doing what you love (your business).

However, if you genuinely love researching and tracking the market and have the mentality, capital and experience for it, just being an investor can be a wonderful PIEC business in itself.

The third layer of diversification can be speculative because modern portfolio theory suggests that safe investments are enhanced and made safer by adding a small amount of higher risk deals.  This also allows us to fulfill any casino mentality we might have left if having our own business is not enough.

PIEC investing makes it easier to create and keep wealth.  It enhances our lifestyles now, because it lets us make money being who we really are.  It makes life more fulfilling and fun.

Integrating investing and business reduces the risks of placing excessive demands on your savings, especially if we have an anchor of value.

#4: Find your Anchor of Value.

Find your passion.  Knowing ourselves also helps begin a business with a most powerful business tool I call the Golden Rule of Simplicity.  This rule says there are millions of people just like us.  When we truly see ourselves we look into a mirror that reflects an entire market who feel and desire just as we do.  This is a simple rule yet gives us a finely tuned market research system which shows us how to get create our product, get in touch with our market, deliver the product or service and surrounds us with like minded souls.

Self-knowledge is also essential for comfort and comfort is a vital part of everlasting wealth.  When investors are not comfortable, no profit is enough.  Uncomfortable investors have a never-ending thirst for more that cannot be quenched.  This indefatigable desire gums up the money making process.  Amounts don’t matter.  Even investors with incredible assets suffer this never-ending lust.  A well documented example is Bunker Hunt’s huge losses when he speculated in silver in the 1970s.  He had hundreds of millions yet speculated it all to make even more. When is hundreds of millions not enough?

Develop your investment rules.  Whatever your passion you will need to establish your method – the criteria you will use to select shares for your portfolio.

Whatever your preference you need to establish your key criteria.  Once you have your method working well, improvements come from experience and practice – learning from the successes and failures of each and every investment you make.  The quote “The harder I practice, the luckier I get” applies here.

Know when to sell – and when not to.  A key factor in effective portfolio management is to run profits and cut losses.  This is counter-intuitive for most people because it is natural to want to grab a profit and rather unpleasant to realize a loss.

If you run your profits they can become very big.  If you cut your losses they will always be relatively small.

To understand this approach better, let me ask a question.  What if I offered you a free Mercedes Benz?

You would probably say YES… but would be thinking… “What’s the catch?”  That’s good because we all know there is no such thing as a free lunch, much less a free new car.

Would an answer be harder if instead there was a choice, a FREE Mercedes or $4 million bucks (as in US dollars)?

Most would choose the cash.  Yet of course we would still be expecting a catch.  There is a penny to drop, some risk and the need to ignore the thundering herd and an absolute requirement of discipline.

Let me share a true story about how and why an investor in similar circumstances got the Mercedes and had the $4 million, but then lost it.

The story contains three valuable tips.

Once upon a time, 1981 to be exact, there was a recession. An economic and political mess arose across the land.  The story began with unemployment.  In 1981, the US Presidential election was over, the US economy was hurting and the new government and president were turning on the money printing machine.

This was a gloomy time, those early 1980s.  Really.  That was the worst recession since the great depression.

You often hear that the worst recession since the great depression was the great recession of 2007.  This is statistically wrong.  1982 was worse.

The times were dark and this story begins at the end of the 1980 Presidential election when the US economy was at its worst in 50 years and getting worse.

Our hero in the story thought the stock market would recover, despite the fact that everyone thought everything was bleak and black.  He approached his bankers and asked to make some leveraged investments in the stock market.

His goal was to make enough profit to buy a brand new Mercedes Benz.

He opened the account and bought shares. He used those shares as collateral to leverage these investments with borrowed Japanese yen.

His timing was lucky.  The stock market rose quickly.  The Japanese yen collapsed.  His profits shot past his goal to buy the car.

The Fever

Bubble fever had set in so when the hero’s investment manager called with that great news, “You have enough for your new Mercedes“, the investor changed his mind.  “Let it roll,” the investor said.  “I want to make a million instead”.

The investment manager left the portfolio alone and soon the investor’s profit rocketed past 1 million dollars.

The investment manager called.  “You have made a million bucks… perhaps we should take some profits.

Let it roll,” the investor said. “I have decided to make two million instead.”

The investment manager left the portfolio alone and soon the investor’s profit rocketed past 2 million dollars.

The investment manager called.  “You have made two million bucks… perhaps we should take some profits.

Let it roll,” the investor said. “I have decided to make three million instead.”

The investment manager left the portfolio alone and soon the investor’s profit rocketed past 3 million dollars.

The investment manager called.  “You have made three million bucks… really we should take some profits.

Let it roll,“… the investor said. “I have decided to make four million.”

As the portfolio was nearing four million in value the investment manager called.  “You have made almost four million bucks… perhaps we should take some profits.

Let it roll,” the investor said. “I have decided to make four million and enough for a Mercedes.”

Shortly after the stock market corrected and the yen strengthened.  Profits fell so quickly the investor lost a million almost overnight.

The investment manager called.  “You have lost a million bucks… we had better take the profits.

Hold,” the investor said. “The market will come back”.

The stock market fell more and the yen grew stronger.  The profits fell even faster and the investor lost another million.

The investment manager called again.  “You have lost another million bucks… it’s time to take your profits.

Hold,” the investor said. “The market will come back”.

The stock market continued to plummet and the yen rose more.  The investor lost another million.

The investment manager called.  “You have lost three million bucks now…  You really should take the profits left.

Hold,” the investor said. “The market will come back”.

Finally as the market plunged more and profits faded away, the investor, having lost more than 3.5 million, closed his positions and had just enough profit left to buy his new car.

The Mercedez was black and shiny… a big 500 SEL model… king of the road.  The hero never enjoyed it much.

The moral of the story is that when you invest you need a plan, a discipline and to know when to holdem and when to foldem.

Remember that there are always three distinct options – buy, sell and hold.  We’ll look at how to decide when to buy, to sell and to hold later in this report.

Make sure you have some liquidity. You should always keep an eye on the “liquidity”, the ease with which you can sell all or part of your portfolio. If you are invested mainly in big cap stocks you will have little trouble going into cash if necessary.  However, if you have focused on smaller growth shares it makes sense to keep enough of your PIEC portfolio in large companies.

Select shares that can, if necessary, be turned into cash instantly and provide some comfort if the market as a whole turns ugly.

The potential gains on very large companies are not likely to be as high as those from smaller growth companies, but they can and often do well enough to give you a warm feeling.  Remember comfort counts!

Diversify – but not too much.  Your portfolio should contain no fewer than 10 shares, and you could put 10 percent of your money in each of your top selections.  Diversification is essential to reduce risk, but too much of it can hinder performance.

One of the best ways to have huge diversification in a small portfolio is with Country Index ETFs.  These ETFs are similar to an index mutual fund but are shares normally traded on a major stock exchange that tracks an index of shares in a specific country. ETFs do not try to beat the index they represent. The management is passive and tries to emulate the performance of the index.

Most country index ETFs are invested in dozens, often a hundred or more, shares.

For example, the iShares MSCI Australia (symbol EWA) is a Country Index ETF that tracks the investment results the Morgan Stanley Capital Index MSCI Australia Index which is composed mainly of large cap and small cap stocks traded primarily on the Australian Stock Exchange mainly of companies in consumer staples, financials and materials. With 72 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in Australia.

A portfolio of a dozen country index ETFs represents diversification to hundreds of shares and a dozen currencies.

Diversifying into countries is safe because countries  generally do not go away, go bankrupt or become challenged by changing technology and altering markets.

Diversifying into countries is also relatively simple because, there is sufficient analysis of global markets so every country’s stock market can be compared and markets of best value included in a safe portfolio.

In addition these valuations do not change quickly.  In 2016 our portfolio of 20 good value country index ETFs had only one change, an addition of the Turkey Index ETF, in the year.

This low volume turnover gives us time to put our focus and energy on our business and the passion we love most.  Studies over decades suggests that this simple slow trading, highly diversified approach increases long term profits and increases safety.

Country ETFs provide massive, good value diversification at a really low cost.

Most passive country index ETFs have minimal cost structures.

#5: Keep costs down. 

High trading costs are one of the biggest drags on the performance of your PIEC portfolio.

There are numerous costs we need to keep an eye on.

Load fees. Avoid back-end and ongoing load. When looking at mutual funds, we’ll typically see them listed as A shares, B shares, and C shares.  All of these share classes have some type of load.  Avoid them.

A shares include a front-end, a guaranteed loss the minute you buy.  B shares come with a back-end load, a guaranteed reduction of any profit or expansion of any loss.  B shares typically charge 5% if they are sold within a specified time (normally five to seven years). There are also higher ongoing operating expenses for B shares. Fund companies typically charge up to an extra 1 percent a year for B share operating expenses.

C shares charge a penalty (usually 1 percent) if a sale is made within the first year.  They also carry higher expense ratios.

12b-1 fees are fees hard to see internal fees that cover a fund’s marketing and distribution costs. Funds can 12b-1 fees to pay brokers incentives for selling their funds. We should watch 12b-1 fees to make sure our broker is advising this fund because it is a good investment, not because he or she is receiving an incentive.

Management fees. We should make sure we get what we pay for, a good manager who makes us feel comfortable by helping build safety and steady performance in our portfolio.

Churning. Some funds and brokers churn, or buy and sell more than is really required.  History suggests that the less activity in a portfolio, the higher the return. Active management is one thing, but funds and brokers can increase their income with excessive transactions that do little or nothing to help us as investors.

Misallocation. Many investors are misallocated for the benefit of the bank or broker.  There are a remarkable array of unnecessarily risky, undiversified portfolios created to generate fees, and that have nothing to do with a client needs. Beware of complex and expensive portfolios full of bits and pieces that are hard to understand. Low transparency can often be associated with high costs.

Expense ratios in fund doesn’t cover all of the costs.  All investors, whether using funds or not face other costs such as brokerage and bid-ask spreads.

Bid-ask spreads for example are subject to market friction.  Markets are liquid because makers standing ready to buy or sell shares at all times.  They are paid by the difference between what they will buy and or sell for.

Shares that have less liquidity, ie.  Not many buyers and sellers, have bigger spreads between buying and selling prices.

Investing in widely held index funds and index ETFs can reduce this cost gap.  Such investments normally trade within fractions of a cent, keeping this this hidden expense in check.

Trading commissions make active trading an expensive way to increase profits. Trading costs sandbag our profits from the start.

Taxes need to also be considered. Buying and selling quickly increases fees and also creates short-term capital gains taxes.

Be careful of margin account as well. Most brokers will let us borrow money (for a fee) so we can leverage our investments.  This increases any profits or losses created, but also adds the interest cost of the leverage.

If we add up all the potential fees, redemption fees, brokerage fees, back-end load fees, management fees, inactivity fees, 12b-1 fees, transfer fees, minimum equity requirement fees, commissions, the cost of limit orders and consultancy costs, before investing.

We should know what all our fees are.

Passive Funds Usually Cost Less. Because reducing costs is a major factor in investment success, low cost passive funds that do not require high cost managers generally out perform managed funds in the long run.

Over a 15 or 25 year period very few managers outperform the respective benchmarks of sectors where they invest by a couple of percentage points.

It’s an easy way to game the stock market, and getting easier by the day.

In Part Two of this report we’ll look at the more speculative end of our PIEC portfolio.

While we are sharing this report, I want to make a special offer, limited to the next three days, that can help you integrate your business and investing.

We offer two courses for attaining financial security.

The first is our “Live Well and Free Anywhere Program”.  The program contains  a series of courses and reports that show ways to earn and be free. These courses and reports are:

  • “International Business Made EZ” course
  • “Self Fulfilled – How to Write to Sell” course
  • Video Workshop by our webmaster David Cross,
  • The entire weekend “Writer’s Camp” in MP3,
  • The report “How to Raise Money Abroad”
  • Report and MP3 Workshop “How to Gain Added Success With Relaxed Concentration”
  • Any updates to any of the courses, workshops, reports or recordings for a year.

You can learn all about this program at How to Have Real Freedom, but do not order the program there for $299 .  If you subscribe to the Purposeful investing Course in the next three days, I’ll send you the program free.

I invite you to join me and a small selective group who for the next year will participate in an intensive program called the Purposeful investing Course (Pi).  The purpose of Pi is finding value to increase the value of and protect our savings, pensions, income and wealth in good times as well as devastating economic conditions.

Learn Slow, Worry Free, Good Value Investing

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

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

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

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

#1:  Current book to price

#2:  Cash flow to price

#3:  Earnings to price

#4:  Average dividend yield

#5:  Return on equity

#6:  Cash flow return

#7:  Market history

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

This is a complete and continual study of what to do about the movement of international major and emerging stock markets.  I want to share this study throughout 2017 with you.

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

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

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

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

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

The circumstances that created fortunes 30 years ago were an overvalued US market (compared to global markets) and an overvalued US dollar.  The two conditions are in place again!   There are currently ten good value (non US) developed markets,  plus 10 good value emerging markets.

Pi shows how to easily create a diversified, worry free portfolio in some of these good value markets using Country Index ETFs.

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

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

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

This report sells for $29.95 but when you subscribe to Pi you’ll receive the report, “Three Currency Patterns For 50% Profits or More” FREE.

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

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

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

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

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

Save $457.95 if You Act Now

Subscribe to the first year of the Personal investing Course (Pi).  The annual fee is $299, but to introduce you to this online course that is based on real time investing, I am knocking $102 off the subscription.  Plus you receive FREE the $29.95 report “Three Currency Patterns For 50% Profits or More”, the $27  report “Silver Dip 2015” and the $299 “Live Well and Free Anywhere Program”.

Triple Guarantee

Enroll in Pi.  Get the first monthly issue of Pi and the report “Three Currency Patterns For 50% Profits or More” and the “Live Well and Free Anywhere Program” right away. 

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

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

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

#3:  I guarantee you can keep “Three Currency Patterns for 50% Profits or More” and “Silver Dip 2015” plus the Value Investing Seminar as my thanks for trying.

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

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

I am so confident that you’ll gain from this offer that if you are not fully satisfied, simply email me within 60 days for a full refund  and keep the $299 “Live Well and Free Anywhere Program” as my thanks for giving Pi a try.  

Read the entire article “The Real Cost of Cheap Food” here.

Ecuador Capital Gains Tax


Ecuador Capital Gains Tax

Ecuador capital gains tax is not due on occasional property sale profits.

This is another Ecuador earning idea… fixing up properties… like this.

This can be profitable. Plus these profits can be tax efficient as well.

In Ecuador there is no capital gains tax on the occasional sale of real estate… so you can take a property like this…

Cotacachi condos

fix it t look like this…

Cotacachi-condos

and sell it without incurring income or tax tax liability in Ecuador.

You may still incur tax liability in your country of residence or citizenship. For example if you are a US citizen you may have US capital gains or Alternative Minimum Tax liability.

This is why it is of utmost importance that you consult a tax attorney on such matters.

In fact it now more important than ever to have legal advice (US citizens at least) when you bank and do business abroad.

For year’s we have advised readers of the advantages of investing, business opportunity and banking opportunities abroad.

The main benefit is greater opportunity.  This is the era of the global economy and those who invest globally have the greatest opportunity. This is the story we have been preaching for 41 years this May.

For example right now the US property market is quite slow. Ecuador’s market is strong.

Banking abroad provides access to more experienced global investment knowledge and the ability to execute global investments and business more efficiently.

Another benefit is added asset protection.

I regularly get notes like this from readers who are professionals and in business…

“Gary, I continue to be bothered by an unjust lawsuit that is actually  extortion.  The legal fees are crazy. Such is the legal system now that even when you are totally innocent, you lose even if you win.”

When you invest and do business globally, assets held correctly abroad are safer from seizure via civil action.

However, we have also continually warned of the great risk of doing global investing and business  without good legal advice. Monday’s message looked at the importance of making sure that you use overseas banks in the correct way.

An excerpt from a recent article in the Financial Times entitled “Swiss agree to relax bank secrecy rules” points out the importance of this advice.

The article says:

BERNE, March 13 – Switzerland agreed on Friday to relax its strict bank secrecy rules and co-operate more on tax evasion in a last-ditch attempt to fend off a global crackdown on tax havens that is rattling the offshore banking industry.

In a landmark statement, the Swiss government said it would embrace standards for tax cooperation and exchange of information set by the Organisation for Economic Cooperation and Development, meaning more information on suspected tax evaders will be shared with other countries.

”Banking secrecy does not protect tax crimes. International cooperation on taxes has become more important given the globalisation of financial markets and in particular against the background of the financial crisis,” Swiss president and finance minister Hans-Rudolf Merz told a news conference.

A decision on Thursday by tiny offshore rivals Liechtenstein and Andorra to adopt more tax co-operation has put even more pressure on Berne.

It comes on the heels of moves by other centres, including Singapore, Hong Kong, Jersey and the Isle of Man, to open up.”

An article in the New York Times outlines the focus importance that taxing authorities have placed on tax havens.  The article was about how US President Barrack Obama acted as a mediator during a recent tense meeting between The French President Sarkozy and Chinese President Hu who were arguing about tax havens during the Group of 20 meetings.

The article said:

“Mr. Sarkozy wanted the big communiqué produced by the Group of 20 to endorse naming and shaming global tax havens, maybe even including Hong Kong and Macao, which are under China’s sovereignty. Unsurprisingly, Mr. Hu was having none of it. He appeared angry that Mr. Sarkozy was effectively accusing China of lax regulation, and that the French leader was asking China to endorse sanctions issued by the Organization for Economic Cooperation and Development, a club of wealthy nations that Beijing has yet to join.

According to accounts provided by White House officials and corroborated by European and other officials also in the room, Mr. Obama escorted both men, one at a time, to a corner of the room, to judge the dispute. How about replacing the word “recognize,” Mr. Obama suggested, with the word “note?”

The result: “The era of banking secrecy is over,” the final communiqué said. “We note that the O.E.C.D. has today published a list of countries assessed by the Global Forum against the international standard for exchange of tax information.” Hong Kong and Macao did not appear on the list.

In other words, be global by all means… but make sure you have a local attorney who helps you do everything legally and correct.

The attorney I use is Joe Cox.  You can reach Joe at jcox@coxnici.com.

Learn more about Joe Cox here.

Back to the fixer uppers.

If a person spends time in Ecuador  and stays alert, they’ll see many incredible fixer upper bargains.

Just over a year ago, Merri and I bought the four story office building shown above.   We began cleaning it up an converting two floors into condos.

I could sell these for double what I paid… and still have the two downstairs floors… though they are not for sale.

Construction costs are low. Local craftsmen are handy.  They’ll do things you ask.  So we can afford to use great tiles in the kitchen but keep costs down.

This was the third floor… the kitchen especially…

was a mess.

Here is the third floor now.

ecuador-banks

This if fully furnished with…

ecuador-banks

one bedroom and …

ecuador-banks

office/den (or second bedroom)  and…

ecuador-banks

balcony.   The kitchen now…

ecuador-banks

looks great.  The hardwood cabinets had not been installed when I took this shot.

This was the 4th floor, before…

now let’s head up the stairs and see  it after.

ecuador-banks

This is a loft studio with…

ecuador-banks

great light and an open feel with…

ecuador-banks

full dining area and…

ecuador-banks

kitchen.

ecuador-banks

These floors are among the highest points in the village and views from both units are the best around.  Morning’s give…

the sunrise over Mt. Imbabura.

ecuador-banks

Evenings offer sunset in the east on Mt. Cotacachi.

ecuador-banks

Views are great at night with the village alight.

ecuador-banks

and you can see the entire village…

ecuador-banks

and both mountains during the day.

Where we had huge walls we said…”How about windows with a view?”.   The builder  figured out what height was needed to see Mt. Cotacachi and simply knocked the window openings in the walls. Then he built hardwood window surrounds that frame this view.

ecuador-banks

The bathroom includes a full tiled bathtub and spa shower like this.

ecuador-hotel-savings

The king size sleeping nook has this view also and is fully curtained…

ecuador-banks

with full hardwood closets.

ecuador-banks

These units are available for rental on a three, six or 12 month lease by the way.

Fixing up has property provided Merri and me with sopme nice extra profit… that is totally tax free in Ecuador. Though our last Ecuador fixer upper profits did create some US tax liability.

In these times of change the best ways to gain opportunity are with real estate, commodities, stocks and your own business.  For those who want to live full or part time in Ecuador and earn extra tax efficient profits, that avoid Ecuador capital gains, consider buying and fixing up Ecuador property.

Gary

Join us in Ecuador.

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.

Take Two for One. Attend any of the three international business & investing courses below and select any one of the tours above free.

July 24-26 IBEZ North Carolina + Tangled Web

Oct. 9-11 IBEZ North Carolina + Tangled Web

Nov. 6-8  IBEZ Cotacachi + Tangled Web

Sign up for our three May 2009 tours and attend any of the IBEZ Cotacachi + Tangled Web seminar above FREE.

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.

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

See our full 2009 schedule here.


Multi Currency Predictions Feb. 2009


We made several multi currency predictions at our February 2009 International Investing & Business Course in Cotacachi, Ecuador. The investing and business portion concluded yesterday. We are now inspecting Ecuador property.

We used many approaches to process information about how markets and economies might move.

We viewed currencies at the technical level and saw that Jyske Global Asset Management (JGAM) had closed their British pound recommendation.

This is the fine detailed view… the technical end of investing,  Peter Laub of JGAM showed how JGAM had recommended investing in pounds at 1.3750 with a stop loss at 1.3700. Peter explained how the pound dropped to 1.3703 before rising to 1.4500.  JGAM took profit on the backslide to 1.4300.

We looked at economic fundamentals and discussed the February 10, 2009 New York Times article   “Bailout Plan: $2.5 Trillion and a Strong U.S. Hand”  by Edmund  Andrews and Stephen  Labaton  which said:

WASHINGTON — The White House plan to rescue the nation’s financial system, announced on Tuesday by Timothy F. Geithner, the Treasury secretary, is far bigger than anyone predicted and envisions a far greater government role in markets and banks than at any time since the 1930s.

Administration officials committed to flood the financial system with as much as $2.5 trillion — $350 billion of that coming from the bailout fund and the rest from private investors and the Federal Reserve, making use of its ability to print money.

We compared the inflationary impact of this bailout with the deflationary impact of a 20% contraction in the $14 trillion economy.  This looks like a wash that could bring an economic balance at the cost of the US dollar’s parity to  other currencies.

We viewed how seasonality was at work. Over 30 years the Dow has frown 8.16%  overall but all of that growth and more (8.36% per annum average)  have come in 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… history suggests that every day we move closer to May, the chances of a stock market correction in 2009 diminish.

We viewed the economic cycle and saw that we are reaching the phase of the economic cycle when we should be coming out of cash and bonds and into  shares as:

* Interest rates are down.

* There is a rush for liquidity.

* Employment is growing.

* Uncertainty is high.

multi-currecny-predictions

We looked at the fact that we have plenty of time… no hurry. We can wait and see.  We have time to choose and pick…  the best bargains and values.

We even looked at how the planets and full moon affect investors. There is a historic link in the general trend of world affairs and the the cycles of Jupiter and Saturn.    History suggests that when  these planets are in a good phase it is been auspicious for the world and vice verse.

The cycles of these planets are about 12 years and 30 years which ties into the market cycles we track.

The chart below shows the historical relationship.

We viewed this chart  from a Maharishi Vedic Astrology prediction by Siebelt Meyera in February 1997.

multi-currency-markets

The chart is a bit hard to see here so here is what it reads in the troughs:

1914 Start of WW I

1939 Start f WWII

1962 Cuban Crisis

1973 Yom Kippur War

1997 Economic meltdown in Asia

Since 1991, the cycle has been in their downward trends and reached its lowest in 1997 when Jupiter was debilitated, and in 1998 when Saturn will be debilitated. From 1999 onwards the value will slowly and reach a peak value again between 2012 and 2015.  This suggests a slow recovery over the next three years.

All of this confirmed that we should not expect a quick recovery and reconfirmed our recommendation to do nothing now. Maintain a defensive position and wait for opportunity to present itself.

We reviewed my personal portfolio to see how I am doing this.

Liquid Portfolio  Allocation

Cash  23%
Bonds  61%
Shares 16%

Liquid Portfolio Currency Allocation

Brazilian real              4%
Denmark kroner      33%
euro                            31%
British pound          10%
Turkey Lira                8%
US$                           14%

Total Asset Allocation

Cash  21%
Shares 2%
Emerging Shares .5%
Bonds 17.5%
Emerging Bonds  8%
Ecuador Real Estate 9%
US Agricultural Land 12%
Residential Property 10%
Commercial Property 20%

My Cash Currency Breakdown

USD   14%
GBP  4%
Norwegian kroner 1%
Swedish kroner 1%
Other 1%

My Shares

Bank of Florida  .5%
Jyske Bank  .5%
Turkey Equity Fund .5%
European Equity Fund 1%

My Bonds

Swedish Bond Fund  2%
Euro Bond Fund 4.5%
Danish Bond Fund 7%
ELF Aquitain  EUR 4.500% 23.03.2009  1.5%
Caisse D‚Amort Dette  EUR 12.07.2009  1.5%
Rabobank NL    CAD 4.250% 2009           1%

My Emerging Bonds

Hungary Gvt.    HUF 6.250%12.08.2009   1%
Hungary Gvt.    HUF 6.750%12.02.2013     1%
Emerging Market Bond fund  2.5%
European Investment BK TRY Bond  1.5%
Brazil    BRL  12.500% 05.01.2016          1%
China    EUR  1%

My US Real Estate

US Agricultural Land  12%
Residential Property  10%
Commercial Property 21%

My Ecuador Real Estate

Ecuador Andean residential 2%
Ecuador Coastal    5%
Ecuador Agricultural 2%

We also looked at the importance of investing in things we like.

We reviewed real estate investments in Cotacachi and on the Ecuador beach.

Delegates met Ecuador condo owners Bob & Barbara Humphrey. Here is Bob & Barbara at the Ecuador beach.

multi-currency-predictions

Bob & Barbara live in Telluride Colorado in the summer. Bob has retired from his diving business… flies his own plane and races cars (Shelby Cobra).  Barbara is a Feng Shui expert who lectures globally on this subject.

Like many of our readers Bob & Barbara have a condo both in Cotacachi and on the beach at Vistaazul Beach Condos.

We packed incredible amounts of information into three days but had fun as well.

There was plenty of time for delegates to talk and share what they learned.  Here are several delegates talking, US, Australian and Canadian.

multi-currency-predictions

Plus JGAM hosted a Valentine’s Day wine & cheese reception on Saturday night.

multi-currency-predictions

Andean musicians performed.

Multi-currency-predictions

There was Andean music… a Conga line began.

multi-currency-predictions

Andean dancers entertained.

multi-currency-predictions

There is an excellent organic vineyard and Swiss cheese factory near Cotacachi.  They are both for sale (the properties) and we are viewing them on today’s real estate tour.  For the party we just enjoyed the products, three excellent Swiss cheeses…

multi-currency-predictions

plus excellent wines.

multi-currency-predictions

The photographers in the group were having fun.

multi-currency-predictions

The youngest delegate was a bit bewildered.

multi-currency-predictions

Here is the key advice from that course.   Hold off. Wait. Do Not hurry. opportunities abound but we have plenty of time to pick them up. There could be another drop in May before a gradual recovery.  Invest with care… but invest with passion. Do things fulfilling as well as profitable. Enjoy the process as well as the end results.

Regards

Gary

Join us in Cotacachi and on Ecuador Coast in March.

Merri, our webmaster and I have created a new course on how to build a web business with a webmaster.  Here is a special offer on this new course.

You can enroll in this special course for $299. However if you sign up for our three courses in March 2009, I will send it to you free. You save $299.

March 8-9 Imbabura Real Estate Tour

March 10-15 Ecuador Import Export Expedition

March 16-19 Ecuador Coastal Real Estate Tour

Bob Shane will be at our March courses and will be available to provide health balancing.

Get our web based course FREE if you join us in Ecuador this February or March.

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

Future 2009 courses

May 29-31  JGAM Global Asset Strategy Seminar

June 12-14 Shamanic Mingo Tour
June 16-17 Imbabura Real Estate Tour
June 18-21 Ecuador Coastal Real Estate Tour

July 3-6     Ecuador Import Export Expedition
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

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.

Cotacachi Property Fixing


Cotacachi property fixing, restoration and conversion offers opportunity.

Yesterday’s message looked at Ecuador coastal fixer uppers. Today let’s see some more of the White House South project that Merri and I have taken on as  a Cotacachi fixer upper.

One great thing is that what is expensive up north…tile, hardwood etc. is the low cost construction material here.  So the less expensive way creates a premium product for with the northern market.

For example tile work is really inexpensive so we are putting in top of the line tile in the kitchette area.

cotacachi-fixer-upper-real-estate

The building began like this.

Cotacachi condos

It is looking better and the shots below show why this process is kind of fun.

Cotacachi-condos

Construction costs are low and the craftsmen are so handy…they’ll do things you ask.

For example, outside our top unit, we have a small roof garden.

cotacachi-fixer-upper-real-estate

So we had these flower boxes added. We did not quite know what to do so just asked the builder…”use your creativity.”  He did this great job in concrete for not much at all.

cotacachi-fixer-upper-real-estate

The flowers will grow really fast in the Ecuador sun!

The top unit has high walls and needed more light, so we asked…”how about windows”.   The builder simply knocked out the space and built hardwood window frames to match.

cotacachi-fixer-upper-real-estate

The bathtub was inexpensive. Nothing more was needed because the workers use the same hardwood to build a frame…

cotacachi-real-estate

and then tile it so it ends up looking like this

ecuador-hotel-savings

The list goes on.

You can read more about this at Cotacachi progress and Cotacachi & Bonds

We cannot stop fixing up. When we see a run down place all we see is potential!

Learn how to catch happy and or fear.

The information above is an excerpt set to our Ecuador Living subscribers. Learn ow to read the entire article as a subscriber at Ecuador Living

Until next message may everything be fixed up for you.

Gary

Join us in Ecuador.   Take a hike with me in the warm Cotacachi winter’s sun.

cotacachi-sun

Stroll the sunny Ecuador beach this winter.

Ecuador beach

Jan. 16-21 Ecuador Spanish Course

Jan. 22-23 Imbabura Real Estate Tour

Jan. 24-27 Coastal Real Estate Tour

Join us for great fresh Ecuador seafood!

Cotacachi-fish

Feb. 9-11 Beyond Logic

Feb. 13-15 International Business & Investing Made EZ

Feb. 16-17 Imbabura Real Estate Tour

See Ecuador’s incredible scenery.

Cotacachi-fish

March 8-9 Imbabura Real Estate Tour

March 10-15 Ecuador Export Expedition

March 16-19 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

Better still join us all year! See how to attend our 27 courses, tours, mingos and expeditions in 2009 FREE.

Cotacachi Progress


Cotacachi progress is wonderful.

How the world turns.

Sometimes in the US, everything seems to be falling apart and it is hard to get things done.

Merri and I just returned to Cotacachi Ecuador and after just being away a couple months, so much good is happening!  There is Cotacachi progress everywhere.

First there is more improvements in the roads. The main shopping street, Tenth of August has been totally redone with brick pavers and wonderful indigenous designs. Here is a shot I took from one end of Tenth of August

Cotacachi progress

This gives the district such a holiday feel!

Here is Tenth of August in the middle of the village, near our hotel El Meson de las Flores.

Cotacachi progress

We have progress at El Meson as well. We are continually upgrading something.   This month we have focused on the courtyard…

Cotacachi progress

and the courtyard flowers.  We have a new gardener and his efforts are really starting to show.

Cotacachi progress

There is progress at Cotacachi’s Primavera condo projects also.

Primavera II and III are nearly complete.

Cotacachi progress

Residents have begun moving in.

Primavera IV is well under way.

Cotacachi progress

and Primavera V has started.

Cotacachi progress

Our White House Condos are well on the way also. We introduced this fixer upper a couple of months ago…right next to the hotel.

Cotacachi progress

Now the top floor is nearly ready.  We just knocked in some new windows. Here is the view above the bathtub.

Cotacachi progress

Here is the view out the breakfast balcony.

Cotacachi progress

More on this construction progress coming!  You can see how we started here.

The hotel is packed. 50 delegates just arrived for our course tomorrow. There is quite a buzz going on here in Cotacachi.

I have to get downstairs now for the quinoa welcome cake!

Life here is good.

Gary

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
Jan. 24-27 Coastal Real Estate Tour

We’ll visit the Otavalo markets.

Ecuador-Project

Feb. 13-15 International Business & Investing Made EZ
Feb. 16-17 Imbabura Real Estate Tour

Cotacachi-meeting

Courses are centered around this open air courtyard in our colonial inn El Meson de las Flores.

March 8-9 Imbabura Real Estate Tour
March 10-15 Ecuador Export Expedition
March 16-19 Coastal Real Estate Tour

You are also invited to tag along to the beach where we visit all types of Ecuador beach property for sale. Here is one f our previous tours enjoying a visit to Vistazul condos.

Ecuador-Project

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