Tag Archive | "bank risk"

Retirement Economics VII – Bank Risk

Assessing bank risk is a really important part of retirement economics.

Everyone faces bank risks.  For retirees the lack of time to recover from bank defaults increases the risk.

Bank risk is a problem of demographics and bank management and the nature of democracy.

The Nature of Democracy

The Capitalistic democratic system has proven to be one that is most in tune with nature.  However like all systems it has loopholes and flaws as do all systems.

Part of the driving force in such a socio-economic system is that the public’s mindset is linear and is based on the idea that if we work hard and save, life will be better later.   We, in the Western world expect life to keep getting better.   We are taught to sacrifice the here and now for the future.

child's world

My “Child’s World”, a Gift of 60 years.

When I was very young, my mom and dad stretched their meager budget to buy me a set of “Child’s World”.    This was a great sacrifice and I treasure these tomes.   The plan was to pass them on to our children and grandchildren.   Rapid advances in technology ended that plan.  They sit in my library as a fine memory to dwell upon and I especially love Book One, filled with nursery rhymes, stories and fables, including on page 111 Aesop’s story of the “Ant and the Grasshopper”.

grasshopper and ant

The Child’s World – Book One- Page 111.

You probably know the story… the moral being “Make hay while the sunshines Nelly!  Work hard and save in good times because bad times will come.”

This thought process is understandable since most of the world’s industrialization began far up in the northern hemisphere where winters are harsh and cold.  However in democracies many of the voters just want to be grasshoppers and enjoy the good times.   They enjoy the ups so much that they have nothing but their ability to vote during the downs.

Politicians being politicians… their first goal must be”get elected”.  This forces them to promise, “We’ll let the good times roll!”

Then they feel required to keep those promises and to pay for them they tax the ants… who did work hard and save.

This is fine as long as more and more younger ants are born to continue caring for the aging grasshoppers.   Then the party gets interrupted by the forces of nature.

Industrialized Demographics

demographic pyramid

Perfect demographic pyramid in a Western Style Capitalistic Democracy.

An apparent rule of nature is an inverse relationship between material wealth and birth rate.   The richer a nation is, the fewer children per family are born.

demographic pyramid

Japan’s pyramid is more typical of a mature industrialized demographic pyramid.

You can feel the instability just by looking at the chart.  There are too few people aged 20 and 30 and 40 to support those in the retirement range.

That’s the good news because the bad news is that these pyramids are growing worse.

demographic pyramid

All the mature industrial nations have an insufficient birthrate to support a healthy demographic pyramid.

Yet to the polls remain open and the grasshoppers still vote.  This forces politicians to think up new ways to take savings from the ants to share with the grasshoppers.

Politicians can only raise taxes so much because grasshoppers do not like to pay tax.  Plus although there always seems to be fewer ants than grasshoppers, the ants do get to vote as well.  Thus the politicians use other ways to fool the grasshoppers into thinking the party is still on.   They devalue the purchasing power of the currency.  They raid current social savings (like the Social Security Trust).  They raid private pensions.  Finally when these options are exhausted, they rob the banking system.

Here is how this demographic problem is now affecting the safety of banking… everywhere.

A US News article struggled to explain the severity of a growing global banking problem in an article entitled “The Cyprus Bailout Does the Unthinkable, Vaporizes Bank Deposits” by Rick Newman.

Here is an excerpt: Apparently folks can stop worrying about the financial crisis in Cyprus. But there’s one startling development in the tiny island nation that’s worth paying attention to.   Unlike an earlier plan that would have “taxed” bank deposits, no matter how small, the new bailout protects all deposits up to the insured limit of €100,000. But above that limit, depositors with accounts in Cyprus’s two biggest banks—both essentially insolvent—will lose some of their money, which will be used to help pay the bailout costs. Officials in Cyprus have estimated that depositors could lose 30 percent of their money above the insured limit.

That article missed the cost by quite a bit.  Within a month a BBC News article “Bank of Cyprus big depositors could lose up to 60%” revealed the true loss to depositors.  That article said:  Bank of Cyprus depositors with more than 100,000 euros (£84,300; $128,200) could lose up to 60% of their savings as part of an EU-IMF bailout restructuring move, officials say.   The central bank says 37.5% of holdings over 100,000 euros will become shares.   Up to 22.5% will go into a fund attracting no interest and may be subject to further write-offs.   The other 40% will attract interest – but this will not be paid unless the bank performs well.

The Forbes article “The Cyprus Bank ‘Bail-In’ Is Another Crony Bankster Scam” by Nathan Lewis shared the capitalistic worlds disgust and said:    A new strategy has been unveiled around the world, with the first test run in Cyprus. Despite early denials, the “bail-in” strategy for insolvent banks has already become official policy throughout Europe and internationally as well.

At first glance, the “bail-in” resembles the normal capitalist process of liabilities restructuring that should occur when a bank becomes insolvent. Equity investors and most-junior creditors lose everything; less-junior creditors get a debt/equity conversion, and senior creditors get 100%. The bank can remain in operation, and does not have to liquidate any assets. No public money is required.

I have been an advocate of restructuring insolvent banks according to these basic capitalistic principles, which requires no public funds.

The difference with the “bail-in” is that the order of creditor seniority is changed. In the end, it amounts to the cronies (other banks and government) and non-cronies. The cronies get 100% or more; the non-cronies, including non-interest-bearing depositors who should be super-senior, get a kick in the guts instead.

All insured deposits (individuals and legal entities) up to €100.000 have, as of 26 March 2013, been transferred from Laiki Bank to the Bank of Cyprus. In addition, the entire amount of deposits belonging to financial institutions, the government, municipalities, municipal councils and other public entities, insurance companies, charities, schools, educational institutions, and deposits belonging to JCC Payment Systems Ltd have been transferred to the Bank of Cyprus.

All other deposits exceeding €100.000 remain in the ‘bad’ Laiki Bank.  Did you get that? Financial institutions (e.g. German banks, and central banks including the Bundesbank) get full repayment, along with government entities, while everyone else gets to eat sand.

Cyprus – The Tip of the Iceberg

Governments pick up these bad habits quickly.   The Canadian Broadcasting Corporation  published an article entitled “Ottawa weighing plans for bank failures” by Neil Macdonald. This is a bit frightening that one of the world’s safest countries for banking is considering adding this type of program into its law.

The article says: Departing Bank of Canada Governor Mark Carney has been calling for some kind of convertible bank bond to strengthen reserves. Finance Minister Jim Flaherty looks to follow. But who gets the ‘haircut’ in the event of default?

Buried deep in last month’s federal budget is an ambiguously worded section that has roiled parts of the financial world but has so far been largely ignored by the mainstream media.

It boils down to this: Ottawa is contemplating the possibility of a Canadian bank failure — and the same sort of pitiless prescription that was just imposed in Cyprus.

Canadians tend to believe their banks are safer and more backstopped than elsewhere in the world. The federal government enthusiastically promotes the notion, and loves to take credit for it.

It may well be true, even if Canada’s six-bank oligopoly isn’t terribly competitive, at least in comparison to the far more diverse American banking universe.
But in the ever-more insecure world that has unfolded since the financial meltdown of 2008, it is also increasingly clear that nothing is safe anymore, not even blue-chip bank stocks and bonds or even, in the case of the Cyprus bail-in, private bank accounts.

And now, Canada is making a bail-in official government policy, too.

“The government proposes to implement a bail-in regime … designed to ensure that, in the unlikely event that a systemically important bank depletes its capital, the bank can be recapitalized and returned to viability,” says Finance Minister Jim Flaherty’s March 21 budget, on page 144.

That would be done, the document says, through the rapid conversion of “certain bank liabilities.”

Ottawa’s budget document leaves the definition of “certain liabilities” to the reader’s imagination.

New Zealand is apparently kicking the tires of this bandwagon too.   A Scoop.co.NZ article entitled: “National planning Cyprus-style solution for New Zealand” says:  
The National Government are pushing a Cyprus-style solution to bank failure in New Zealand which will see small depositors lose some of their savings to fund big bank bailouts, the Green Party said today.  Open Bank Resolution (OBR) is Finance Minister Bill English’s favoured option dealing with a major bank failure. If a bank fails under OBR, all depositors will have their savings reduced overnight to fund the bank’s bail out.

Bank Management

This leaves good bank management as a last line of defense. If there are no bank failures, then there won’t be a need for this type of bail-in.

Let’s look at three of the largest US banks…. JPMorgan Chase, Bank of America, and Citigroup and see how well they have been managed..


Vikram Pandit recently exited as CEO at Citibank. He ran Citibank for a little less than five years.   During that time there was nearly a 90 percent decline in the bank’s stock price,

Numerous costly setbacks were directly tied to Pandit. For example the bank bought Pandit’s Old Lane hedge fund for $800 million and shut it down less than a year later, taking a $200 million write-down.

Citibank also last $3 billion in one quarter alone writing its interest in the brokerage firm Smith Barney,

Yet during this time Pandit was took home some $260 million in pay — even after collecting a token $1 salary for a couple of years after the financial crisis.

Bank of America

In 2011 the FDIC took over coverage of losses on $75 trillion worth of Bank of America derivative bets.

The bank was saved once by a $45 billion bailout during the financial crisis, and had $1.04 trillion in deposits as of mid 2011 ranking it second among U.S. firms.

Instead of curtailing derivative trading as FDIC suggested, the major banks expanded risky trading. Bank of America, with $75 trillion in gross derivatives had a crisis on its hands.

However in 2012 the bank paid its CEO  $7.4 million, a little less than the $7.5 million in 2011.

Plus he received $520,513 in perks like use of corporate aircraft and secured parking.

JP Morgan Chase

In 2012 JPMorgan Chase revealed a trading loss of about $6 billion from making risky bets.

The bank said it would dock CEO Jamie Dimon’s pay, largely because of the $6 billion loss.   They kept that promise and Dimon saw a 19 percent pay cut in 2012 earning only $18.7 million down from his $23 million pay in 2011.

However there has been some controversy because his father, Theodore Dimon, 82, earned more than three-times his usual salary from JPMorgan Chase that same year, taking away $1.6 million.  His dad joined his son’s firm in 2009 as a broker, earned $1.6 million in 2012, up from $447,000 the year before and only  $425,000 in 2010.

Management Dilemma at All the Big Banks

Let’s suggest that the intentions of management at all the big banks must be suspect.  Their hearts seem to be focused on enhancing the girth of their own wallets rather than those of account holders.  The system encourages them to take risks.  If they win… they get huge bonuses.  If they lose, they get golden handshakes.  This is not a new trend… just one that is more exposed as excesses in the entire system are stretched by the nature of democracy and aging demographics.   Few rational people will trust big bank management anywhere.

The Solution

I do not know if there is any solution to this natural drift of the modern global social-economy.  The demographics are hardly likely to change.  History suggests there will always be plenty of grasshoppers which leaves democratic systems vulnerable to politicians who will promise anything to attain office.  I doubt that we can depend on guys in white to arrive and save the banks.

This leaves many of us in a new environment… not seen since the 1920s .  Banks cannot be trusted.   We each have to look after our savings and protect our purchasing power.

There are five steps that create the ultimate protection against bank risk.

Step #1:  Bank in more than one country.  If accounts are frozen or taxed in one country… your second or third accounts may be safe.  Just be sure to correctly report these accounts.

Step #2: Hold some gold as insurance. Hope you do not have to use it.   Having tracked gold for over 40 years I have seen and heard it all.  My conclusion is that gold should be held as insurance and as a store of long term purchasing power protection.

If you want to hold gold outside the country where you live or in a safe place check with ASI Precious Metal Direct.  Or call  877-339-8472.

There are five steps that create the ultimate protection against bank risk.

Step #1: Keep all deposits below government guaranteed levels.    In the case of Cyprus, if a depositor had one account for $290,000, he would now have $176,000  ($100,000 plus 40% of $190,000).  If he had three accounts (one in his name, one in a company and one in wife’s name for example) he would still now have $300,000.

Step #2:  Bank in more than one country.  If accounts are frozen or taxed in one country… your second or third accounts may be safe.  Just be sure to correctly report these accounts.

Step #3: Hold some gold as insurance. Hope that you do not have to use it.   Having tracked gold for over 40 years I have seen and heard it all.  My conclusion is that gold should be held as insurance and as a store of long term purchasing power protection.

If you want to hold gold outside the country where you live or in a safe place check with ASI Precious Metal Direct.  Or call  877-339-8472.

Step #4: Invest in collectibles.

One way to invest in collectibles is through Stanley Gibbons.  This 150+ year old firm expanded into Asia in 2011 and the USA in 2012.

Here are excerpts from their investing brochure:

We are living in a world where you could genuinely lose almost everything you have worked for; many people have. Diversifying into rare stamps, rare coins and other prestige collectibles could help you anchor part of your portfolio through the storms in other markets.

The world is uncertain; rare stamps have proved themselves not to be. So, if you’re looking for potentially the best place to put your money over the next 5-10 years, the stability offered by a historical, alternative asset like rare stamps could be your answer.

To illustrate the potential of rare stamps as an investment vehicle, we have made a comparison with what are considered to be two of the UK’s safest assets, property and gold. Look at the graph below, which clearly emphasises the volatility of gold and property (as well as other conventional investment vehicles) and the strength of the premium stamp market. It demonstrates the rise of the GB 30 Rarities Index on Bloomberg, the index of the top GB rare stamps:

stanley gibbons stamps

As you can see, increases in the GB 30 stamps have been consistent and, in some cases, dramatic.

Just as a snapshot of the strength of the market, in the recent crash of 2008, when the value of traditional asset classes plummeted, the GB30 Rarities Index increased.

Located in the heart of London at 399 Strand, Stanley Gibbons has been the home of rare stamp collecting since 1856. Stanley Gibbons is a globally recognised name and a brand synonymous with quality and expertise.

We were awarded the Royal Warrant by King George V in 1914 –an honour that we still hold proudly today and we maintain by trading with the Royal household.
Stanley Gibbons – quality, expertise & reassurance for you

What that means for you is that you can rely on over 150 years’ experience and skill in appraising, buying, describing and selling stamps; in today’s uncertain times, trust and security may not be flashy, but they are fundamentally important to preserve your wealth. When it comes to investing, it is vital to go with a name you can trust.

Look at the examples below; our experts know the difference between an investment grade stamp and ‘just another stamp’ or a worthless forgery.

One of these stamps is worth £240.The other is one of Britain’s most expensive stamps worth £375,000.

stanley gibbons stamps.

Can you tell which is which?

Look at how their prices (taken from Stanley Gibbons published catalogues) have risen in the last 10 years.

Here is a selection of the type of rare stamps that Stanley Gibbons offers for investment purposes.


Look at how the prices (taken from Stanley Gibbons published catalogues) have risen in the last 10 years.

The prices of rare stamps is fully trackable with the prices recorded in Stanley Gibbons official, annually-published catalogues, the first of which was published in 1865.

They represent the selling price of Stanley Gibbons Limited at the time of publication and are an expert estimate of market value, taking into account prices realised at worldwide auctions and reported private sales.

As well as rare stamps, Stanley Gibbons also offers you investment opportunities in rare coins, wartime medals and historical manuscripts as further options for diversification and portfolio growth.

No previous stamp knowledge is required, and your only decision is when to sell and whether to re-invest your investment returns with us.

For more on Stanley gibbons investments call  877-340-2247  or click here for Stanley Gibbons information.

Step #5:  Have a micro business that provides a valuable service to a community of like minded souls.  As long as you have the ability to serve, you have the ability to earn.

This is why pinnacle careers that fulfill our destiny and take more responsibility for our individual social, spiritual and financial needs grow in value for us all.

Bank risks have expanded and the Cyprus Bail – In adds a higher level of concern.  We can no longer trust our governments or our bankers totally so consider the five steps above so your economics remain  more secure.


Whatever type of micro business you create, you’ll be able to use writing to sell.

We offer an online course.  Self Fulfilled – How to Write to Sell for $299. See details here.

Even Better!  We offer a year long program including attendance to a Writer’s Camp.  You receive the  online course “Self Fulfilled – How to Write to Sell” free and save $299.

Writer’s Camps – Recorded on MP3

Learn how to learn how to wrote and self publish from our recorded Writer’s Camp…

Seven P Secrets of Self Publishing

When you write, you can work anywhere. 


Here I am working poolside in the winter, at our Florida farm.

gary scott

Here I am with our hound Ma, working during the summer at our North Carolina farm.

Learn how to earn everywhere, while living anywhere you choose.  I have been able to earn by writing in Hong Kong, England, the Isle of Man, Dominican Republic and Ecuador to name a few of the places I have lived.   Anywhere I am,  I am  able to work.

All I need is my laptop.

That’s all you need too… a laptop to be free!

Before computers, a pencil and pad did the job.

Freedom is just one benefit you can gain from a laptop business.

Another benefit is income.   Writing has brought me both our farms in Florida and North carolina, free and clear… plus a lot more.

Another good example of earning potential is my friend Hugh Howey.   He was working for $10 an hour in a book store when he self published his novel Wool, typing in a storage room during his lunch breaks.

Soon he was earning over $100,000 a month on Amazon.com.  This helped secure a six-figure book deal from Simon & Schuster, and an option for film by Ridley Scott, director of Blade Runner and Alien.

That’s what he’s doing now.

Hugh Howey

Hugh and I playing chess (he beats me badly).

Writers like Hugh are great inspirations.

A couple of years ago Hugh  left Florida, and moved to South Africa.  He had a sailing catamaran built for him and now can sail the world while he continues to write.

Hugh explained it like this: And that’s the miracle of working as a writer: I can do it from anywhere and everywhere. The past few years, I’ve done a lot of writing from airplanes and airports while on business trips abroad.  SAND was entirely written overseas while traveling through seven different countries; I think it’s a better story because of those inspirations.  In upcoming years, I may be writing near your home port.

Hugh’s a super star writer and his success could not happen to a more deserving and talented person.  He pours enormous energy into being worthy of his readership.  But you do not have to be a million dollar a year earner or a traveler to benefit from writing.

The good news is… you do not need a huge success to have a rich and fulfilled lifestyle.  Self Publishing can bring you a life that most people only dream of, as a journeyman writer, instead of a super star.

May I hastily add that the path to stardom begins as a journeyman… so the journeyman’s path brings success without stardom… but can also lead to stardom.

What most success stories like Hugh’s rarely explain is the many hours of writing that was devoted before their self published book sales soared.   Hugh, like most writers were journeymen first.  Stardom came later.

Here are sevens secrets that can help you become a journeyman writer. 

The secrets are a writer’s armory of tools that allows almost anyone to create successful publications for income, freedom and fulfillment.

Take Merri’s and my publishing business as an example.  

Merri and I are not writing stars.  We are journeymen who have for more than 40 years, year in and year out, earned solid income writing and self publishing dozens of publications about multiple subjects.

Some years that income has been more than solid… over a million dollars.  Yet in terms of stardom, we are hardly known.

In a moment you’ll see why that’s fine for us and probably will be for you too.

First some history.

Merri became involved in self publishing over 40 years ago… first helping a veterinarian publish a book on a very specific market… animal acupuncture. Then she showed a needle point artist how to sell more books to an even more specific audience… “needle point enthusiasts”  about her needle point work to an audience larger than the population of the city she lived in.  This led Merri to eventually become Executive Editor of an award winning magazine in Florida.

My story allowed Merri and me to work and live from Hong Kong to London to Europe to Eastern Europe, then the Caribbean and then Ecuador… making millions in the process of following our adventures… having fun… while helping a large readership adapt to a rapidly changing world.

That’s what self publishing can bring, profit, adventure and fulfillment, a great feeling of worth and wonder.

Self Publishing has created exactly the lifestyle we desire allowing us to span the world and work with meaning and purpose.

Self Publishing has become a new business art form. 

The seven secrets can help you start your own self publishing business now.

Everything in publishing is new and exciting and changing.  Publishing is being recreated by the wonderful power of destructive technology.

Everything is new… except the seven secrets. 

Change in the publishing industry is disturbing many.   We love this evolution due to these seven secrets we call the 7Ps.  The 7 Ps are so fundamental to writing and publishing that new technology enhances rather than reduces their power.

The First P is Passion.

Whatever your passion, you can immerse yourself in it AND create income with self publishing.  This can be your direct ticket to the kind of fulfillment you’ve always wanted.

Whether you want to travel the world or live as a recluse, work 12 hours a day or not work much at all,  you can set your schedule to succeed, if you’re willing to learn these seven secrets.

You can start part-time with any dream, passion, and budget.  Once you’ve created a product, you’ll enjoy the “multiple effect” of producing profits over and over again.

So the question is… What do you love to do?

What’s Your Passion:  An example is that thirty years ago, a client of Merri’s had a passion to help people who were in pain?  He published a series of pamphlets explaining various chiropractic disorders in very simple terms.  For example: “What Is Whiplash?”

The pamphlets contained solid information, but were simple 5″ x 7″ brochures with drawings and explanations. He sold them with a rack to chiropractors, who put them in their offices for patients to read.  These little self-published items sold year in and year out for decades.

There are thousands of ideas of this sort that can lead to big business.  It’s just a matter of defining and then acting on your passion.

Although I can work when I please and go where I wish, for me the most important reason for being a publisher is the satisfaction it brings. 

I love the projects I take on, so work doesn’t feel like, well… work.

What do you love?  If you love golf, then you can write and sell publications about golf.  Love travel, fishing, dogs, dolls, or art?  Write and sell publications in these fields.

Are you concerned about crime, war, poverty or environmental issues?  You can publish information products that help reduce these concerns.

Would you like to help the world be a more spiritual place?  Publish a newsletter, write a book (or hire someone to write it for you), record a tape… publish something that enlightens people.

Whatever your passion, you can immerse yourself in it and earn income by publishing for ereaders, print on demand, CDs, lists, bound books, or any format you choose.

Be immersed in your passion and get paid well for it. 

This is why stardom is not the main goal for most writers and self publishers.  Extra income, more freedom and fulfillment are usually more than enough enough.

The seven Ps are:

#1: Passion

#2: Problem

#3: Person

#4: Profitably Priced Product

#5: Prospecting Pathway

#6: Promise

#7: Presentation

The first time I exposed others to the secrets in Self Publishing was in a weekend “Writer’s Camp” seminar.  We offered the camp for $1,500. 80 delegates enrolled.  People from all walks of life attended—chiropractors, businessmen, investors, doctors, realtors, inventors, airline pilots, engineers, and housewives.

Merri and I were so overwhelmed by the response, we decided to make it available to a larger audience.  We created a written course based on our current self publishing activity called “Self Fulfilled – How to be a Self Publisher.”  Then we recorded the weekend “Writer’s Camp” seminar.

Thousands have used the course as it has evolved over the decades.

You can receive both the written course and the recorded weekend seminar, in an MP3 file, in a special “Live Well and Free Anywhere” program I am making available to you.  The normal fee is $299 for the written course and $299 for the recorded workshop.   I’ll send you both the course and the recorded workshop and my course on how to expand the profits of what you write called “Eventful Business” (also $299) all for $299.  You save $598.

We are so confident that you’ll gain from this offer that if you are not fully satisfied, simply email us within 60 days for a full refund .

These courses are not theoretical.  They describe, step-by-step, how Merri and I built a million-dollar international business and how we are running this self publishing business right now.   We use the 7Ps today just as we did four decades ago to create a strong annual income.

This correspondence course is for those who would like their own international self publishing micro business for fun and profit. If you want fun, freedom, extra income and fulfillment with your own full or part time writing or want to build your existing business, by writing to sell you can profit from this course.  The course can help who want their own business or who want to have a business together or a family business.  This is the perfect course for those who can no longer find employment, who are looking for ways to earn abroad and who wish to retire and supplement their income.

Whether you are retired, an investor, chiropractor, doctor, dentist, professional or already own your own business, this offers another way to make money, to turn your passion into profit. We guarantee that we have shared all we know to help you start and run your own international business.  Enjoy and live a life of following your Passion to Profit… through writing.

Here is a special offer. 

Whatever your passion, however you do business, chances are you’ll be writing either to create a product or to sell a product. 

You save more than $598 because you also receive a recorded webinar conducted by our webmaster David Cross (at no extra cost).

David-cross-images tags:"2012-4-20"

David Cross

David has been our webmaster since our website began in the 1990s.  He is Merri’s and my business partner. We could not run our business as we do without him.

Learn the tactics we use in our web business that condenses 27 years of practical experience about search engine optimization, and writing for search engines.

For the last 27 years David has worked with companies large and small – IBM, Agora Publishing, AstraZeneca and many small business owners.  He has worked in 22 countries, and lived in six of them.

David’s clients span the globe and represent companies and charities both large and small.  From corporate giants to small, one-woman businesses and everything from finance, healthcare, publishing, technology, real estate, veterinarians, alternative health centers and everything in between.

David is an essential part of our web based business.

Myles Norin, CEO of Agora, Inc.  wrote:  “I have found David’s knowledge and experience unmatched in the industry.  Without David’s expertise and guidance for the past 7 years, we would not be nearly as successful as we are.”

As Senior Internet Consultant to Agora Inc. in Baltimore, MD, he worked closely with Agora’s publishers and marketers and – over a 7-year period – helped to propel Agora’s online revenues from around $20 million to well over $300 million.

David’s webinar will help you gain benefits in your micro business that large internet marketing companies use.  In this practical recorded workshop you will learn valuable skills to help your micro business.

There has never been a time when the opportunity for small businesses abroad has been so outstanding.  Expand your borders now!  Increase your economic security freedom, independence and success.

If you are not fully satisfied that this offers you enormous value simply email us for a full refund within 60 days.  You can keep all three courses as our thanks for giving our courses a try.

You also receive a report  “How to use Relaxed Concentration to Brainstorm Business Ideas” and a recorded workshop “How to Become and Remain Rich With Relaxed Concentration” at no additional cost.

Plus you get more in the program.

You receive regular writing and self publishing updates for a year.  Businesses usually need to evolve.  Merri and I continue to publish and have our independent businesses.  Some basics have remained for decades, but new strategies occur all the time throughout the year.  We’ll be sending along updates that share our most recent experiences as we learn and continue to grow our international micro business from Smalltown USA.

My special offer to you in this “Live Well and Free Anywhere Program”, is that you receive:

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

We are so confident that you’ll gain from this offer that if you are not fully satisfied, simply email us within the first three months for a full refund. 

Order “Self Fulfilled – How to Publish to Sell” and a full year of update lessons $299.  Click Here.      

See success stories from Self Publishers and a few who have attended the “Writer’s Camp” that you will receive on MP3.


What other readers have shared about us Gary & Merri Scott

US News  The Cyprus Bailout Does the Unthinkable, Vaporizes Bank Deposits

Forbes  The Cyprus Bank ‘Bail-In’ Is Another Crony Bankster Scam by Nathan Lewis

BBC News  Bank of Cyprus big depositors could lose up to 60%

Canadian Broadcasting Corporation  Ottawa weighing plans for bank failures

Scoop.co.nz  National planning Cyprus-style solution for New Zealand

Multi Currency Bank Risk

Multi currency investing and multi currency banks reduce risk.

During this current credit crisis, it makes sense to pay attention to ways to bank risk as well as investment and multi currency risk.

Eleven US banks have failed in 2008, seven of them since mid July.

Now a Warren Buffett owned insurance company has stopped insuring bank deposits above the federal $100,000 guarantee. This withdrawal of insurance shows that many insurers and bankers are worried about future bank failures.

One of many reasons I have banked with Jyske Bank (beyond the fact that they are multi currency experts) for many years is their strong safety ranking.

I like the fact that Denmark has ranked high in Moody’s and other country ratings as one of the safest countries in which to bank.

However, recently one Danish Bank had problems.

Thomas Fischer at Jyske Bank sent me this note in July 2008:

“Hi Gary, I just want to keep you informed that this morning Roskilde Bank (a Danish regional bank) had to ask the Danish Central Bank for support. It is the 9th largest Danish bank and it has been hit hard as it has been involved in the Danish real estate market. The share dropped 45% this morning. Some other smaller regional banks have seen their share prices falling between 10-20%. Jyske Bank has dropped 1.3% The Central Bank will probably put Roskilde Bank up for sale either the entire bank or parts thereof. The bank will not be allowed to collapse and the clients are thus not going to lose any money but it is obvious not good timing to get a situation like this. Thomas”

Thomas was correct and shortly after the Globe and Mail reported:

COPENHAGEN — Denmark’s central bank unveiled an $896.8-million U.S. bailout of Roskilde Bank acting to confine the negative effect of the struggling bank on the Danish financial system. The central bank stepped in after Roskilde, Denmark’s eighth-largest retail bank by market share, failed to receive any offers after putting itself up for sale in the face of bigger than expected writedowns on real estate loans.

The article outlined that Roskilde was extraordinary as a Danish bank in
that it was heavily exposed to the property sector and that other Danish banks in general were well prepared in a deteriorating Danish economic situation.

The Danish Central Bank had no expectations of any other banks suffering

In fact a June 2008 report from Denmark’s National Bank says:

Denmark’s domestic and foreign central-government debt has the highest rating from Standard & Poor’s (AAA), Fitch Ratings (AAA) and Moody’s
(Aaa). Standard & Poor’s, Fitch Ratings and Moody’s affirmed the rating
in September 2007, December 2007 and April 2008 respectively with an
unchanged stable outlook.

Analytical reports and specific ratings on individual government secu-
rities are available on the websites of respectively Standard & Poor’s
(www.standardandpoors.com), Fitch Ratings (www.fitchratings.com) and
Moody’s (www.moodys.com).

Jyske Bank also ranks well on its own and has a stable outlook at this time. unlike most major banks. Here are current rankings:

Bank Rating Outlook
Jyske Bank A+ Stable
Citigroup AA- Negative
Deutsche Bank AA- Negative
Goldman Sachs AA- Negative
JP Morgan Chase AA- Negative
Credit Suisse A+ Negative
Lehman Brothers A Negative
Morgan Stanley A+ Negative
UBS AA- Negative

As can be seen, Jyske Bank is doing well. Jyske is the only bank on the list with a stable outlook. All others are on the watch list for down-grading.

Note that Jyske Bank has the same rating as Morgan Stanley but a better outlook.

Jyske Bank’s rating is better than Lehman (after today probably much better), the same as Credit Suisse and one grade below the others. However, it’s very seldom that S&P give a rating above A+ for a relatively small bank like Jyske Bank. The other banks on the list benefit from their size but this does not tell much about how well they are run.

If you have any questions on how Jyske Bank you can see the bank’s home page www.jyskebank.dk/english and read the latest semi-annual report.

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

Non US investors should contact Rene Mathys mathys@jbpb.dk

The thousands of other reasons I like Jyske are the people that work there.

An article at scienceblog.com entitled “Happiness is rising around the world” says that Danes are the happiest people in the world.

The article says:

People in most countries around the world are happier these days, according to newly released data from the World Values Survey based at the University of Michigan Institute for Social Research.

During the past 26 years, the World Values Surveys have asked more than 350,000 people how happy they are, using the same two questions.

Data from representative national surveys conducted from 1981 to 2007 show the happiness index rose in an overwhelming majority of nations studied.

The 2007 wave of the surveys also provides a ranking of 97 nations containing 90 percent of the world’s population. The results indicate that Denmark is the happiest nation in the world and Zimbabwe the unhappiest. The United States ranks 16th on the list, immediately after New Zealand.

Economic growth, democratization and rising social tolerance have all contributed to rising happiness, with democratization and rising tolerance having even more impact than economic growth. All of these changes have contributed to providing people with a wider range of choice in how to live their lives—which is a key factor in happiness.

“The results clearly show that the happiest societies are those that allow people the freedom to choose how to live their lives,” Inglehart said.

As an example, Inglehart points to the tolerant social norms and democratic political systems in Denmark, Iceland, Switzerland, the Netherlands and Canada all of which rank among the 10 happiest countries in the world.

In my opinion this happiness shows through at Jyske. Our dealings have always found the staff to be helpful, cheerful and willing to take an extra step to help make us as their customer happy as they are

Until next message, may you be happy too.


Join me and Thomas Fischer from Jyske Global Asset Management in North Carolina to learn more about economic trends.

International Investing and Business Made EZ North Carolina

We’ll have lunch at the farm and enjoy the leaf change.

farm colors

Thomas Fisher speaking to our delegates at the farm.




Delegates enjoying a private conversation with Thomas Fischer during a coffee break at the farm.

This is the most beautiful time of the year on the Blue Ridge.