Tag Archive | "bank safety"

Ecuador & Banking


When living in Cotacachi, Merri and I do not use Ecuador banking. See below why banking globally is better.

ecuador-banking

This Cotacachi plaza has one of the village’s two Cathedrals and…

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a bank with an ATM… plus

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a new credit institution with an ATM as well.

ecuador-banking

This works just fine for us.

This is an even better idea now that the Ecuador government has created a new wealth reporting regulation. See yesterdays article on Ecuador’s new financial reporting law if you missed this.

For wealth protection we bank mainly with Jyske Global Asset Management… who look after our investments in Denmark, but comply with US regulations.

I have banked abroad for 40 years and this has become increasingly difficult… though there are still ways.

In fact I co hosted Jyske Global Asset Mangement’s (JGAM) first US seminar  last month in Naples, Florida. Here I am with Thomas Fischer of  JGAM. While other banks are dumping Americans, Jyske is working harder to enhance its global service for US investors.

bank-privacy

Since I wrote my first book, Passport to International Profit in the 1970s, my mantra has been to have what I call a “Six Point Command Posture” which is to:

Live in one country
Bank in a second country
Invest in many countries
Earn in two or more countries
Use a company incorporated in a fifth country
Take a second residence

bank-privacy

The seven speaker panel answered questions at the JGAM – Gary Scott seminar.

Since Merri and I reside most of the time in the US and Ecuador, we do as little banking in these countries as possible.

There are some good reasons to have the “Six Point Command Posture”.   You can see why below.  The “Six Point Command Posture” is worthwhile even though recent events remind us that this posture is regretfully more difficult to attain than before.

The British Telegraph newspaper published a recent article entitled Lloyds Bank hit by Obama tax purge.  Excerpts (a link to the entire article is at the end of this message) say:  Banking group drops American customers in UK ahead of costly proposals to stamp out tax evasion.

Lloyds Banking Group is ditching American customers based in Britain pending a crackdown on international tax evasion planned by President Barack Obama.

This week American private client account-holders at Lloyds’s received letters informing them of an “important change in policy regarding clients who are resident, domiciled or linked to the United States by property or asset holdings”. They were told the bank had “no choice” but to “cease acting as your investment manager.”

One recipient, who has lived in the UK for over 25 years, said: “After all this time, I’ve suddenly been told I must take my money elsewhere and I don’t understand why. Now I’m scared that other banks won’t take me on either.”

The proposals, which were unveiled in the President’s first budget, have been designed to clamp down on American tax evaders abroad. But bank bosses say that in practice they could be asked to take on the task of collecting American taxes at a cost and legal liability that make servicing the clients inexpedient. The rules have not yet been finalised and are still subject to debate in Congress.

The letters also contained four comprehensive descriptions of the bank’s definition of clients that are affected. These included clients that hold green cards, pay American taxes, are American domiciled or even those where there is “any indication” that a client spent more time in the US than “normal holidays currently or in the past or future.”

There has been a continual erosion of the liberty that US investors  enjoy when banking abroad.

First, the Swiss Banks started limiting what US resident investors could invest in  (in the 1970s). Then the Swiss started dropping US resident investors all together.  Many Canadian financial institutions stopped accepting US resident investors  years ago.

Now the British banks have jumped in and as the article shows… it is not just US residents.  Even US citizens who have lived in England for 25 years are losing their accounts.

Fortunately, since banking abroad is not about reducing tax,  there are still great, safe and proper ways to bank and hold assets abroad.

Merri and I use Jyske Bank and Jyske Global Asset Management because they offer an excellent global investment service that conforms to all US rules.

bank-privacy

Lars Stouge President of JGAM speaking at the Naples seminar.

See more on this in a TV interview between Thomas Fischer and me here.

Why Bank Globally?

Some investors mistakenly think that banking abroad reduces tax.  This is not correct and has not been for decades. There are numerous good tax planning ideas, but they work as well with local investments as well as overseas.

The reason to bank abroad is that we live in a global economy.  We are dependent on production from many nations every day.  Even though we do not do so directly we spend many currencies every day.   The ultimate form of financial security is a multi currency existence.

We are multi national spenders so we need to be multi national investors.  We need bankers and investment managers who have international and multi currency experience and expertise.

An excerpt from a recent multi currency question and answer session sent to my multi currency course subscribers explains why and how in more detail:

There are numerous benefits gained by using Jyske. The first benefit is Jyske’s global investing experience, 24 hour trading facilities and their low fee structure.

Jyske Bank has incredible in depth knowledge of markets and have a very broad access to global markets.  Jyske Global Asset Managers (JGAM) not only tap into Jyske Bank for data, but they also use  Morgan Stanley and Bank Credit Analysis for research.  There is rarely an investment question that I cannot get answered at Jyske.

The low fees are also a huge benefit.  I used to hold accounts at 14 banks around the world. Finally I started researching the fees I was paying and bean eliminating the accounts that charged the highest fees.

In the end I was left with Jyske and my London stock broker.  For example Jyske’s fee to buy bonds was one-sixth that was charged by my Swiss banker.

Hidden fees and shaved interest rates, especially those charged when you in exchange currencies, and buy stocks and bonds often chew an investor to pieces.

Plus Jyske has been in the banking business for over 100 years. They have enormous experience and are very conservative.  They were not hit by the sub prime mess. They had no Madoff investments.  I like this type of old fashioned stability.

Jyske is in touch with the pulse of the market. They trade 50 billion dollars of currencies and commodities a day.

Another important aspect gained at Jyske is bank safety. Denmark is ranked as one of the safest countries in the world to bank.

In addition there is great privacy and asset protection. No one that you do not inform can see your account.  Should someone sue you and gain a judgment against you, that judgment is not automatically enforceable in Denmark.   The creditor would have to start a legal action to attain the funds in Denmark and to date this has never happened at Jyske.

Q: Can you explain what type of account the multi currency transactions would be conducted?

A: There are two types of JGAM accounts… managed and advisory.

JGAM can buy any type of investment for Americans in managed accounts… because it is JGAM is making the decision… not the client.  Depending on the size of your account, you can ask Jyske to hold a specific investment in your account and if it makes sense in terms of the execution, diversification and your risk profile, they will do this… but it must be JGAM’s decision.

The managed accounts are available in four risk profiles… low risk… medium…high or speculative.  You can learn more about Jyske’s asset allocation strategy at the JGAM site linked later in this message.

Q: I have residency in Mexico there although I do not claim foreign residency for US tax purposes at this time.

A: Your residence does not matter when it comes to managed accounts.

There is a residential impact for advisory accounts.

If your main residence is outside the US (JGAM will want to see a utility bill as proof of residence), then JGAM can buy any investment without qualification.

If you have an advisory account and your main residence is in the US, then JGAM is restricted to buying qualified (US traded) investments for you.

However you still gain the asset protection and privacy benefits as these US traded assets are held in Denmark.

Q: Do you use a foreign LLC to conduct your business with Jyske Bank?  If so what country is the LLC issued from?

I do not use an LLC for our Jyske accounts. It is much easier to open an account in person.  However our account ownership is part of a plan that takes tax, asset protection and estate planning into account.  Everyone should make their decision on what type of structure and where it is organized based on their own plan that suits their own circumstances.

I highly recommend using a Strategic Asset Snapshot offered by Cox & Nici that  looks at all these variables. Joe Cox the senior partner of this firm has been my tax attorney for about 20 years.

You can get information about their Strategic Asset Snapshot Joe at jcox@coxnici.com

Learn about our Multi Currency Course and how to get this entire session here.

Having a six point command posture has become increasingly important over the  past 40 years as we have increased our involvement in the global economy.  Yet this secure method of living, investing and doing business has also become more difficult to achieve.  The result is that this posture is even more important and more worthwhile.

US investors See Jyske Global Asset Mangement’s new website here.

Non US investors contact Reny Matys at mathys@jbpb.dk

Gary

Save up to $249! Enroll in our July 24-26 International Investing and Business Made EZ seminar here

We offer two emailed courses, one on how to be a multi currency investor, the other on how to have your own international web business.

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

If you enroll in our July 24 to 26 International investing and business seminar by July 1, 2009 you can have one of these tow emailed courses free and save p to $249.

Delegates gain a lot by talking with each oter at these courses. Here are delegates at our Naples course.

bank-privacy

Join me with Thomas Fischer of Jyske Global Asset Management and my webmaster David Cross in North Carolina July 24-26 IBEZ North Carolina

We’ll have a New River wine tasting at Bohemia Gallery as we did last year. here are delegates at that tasting.

ecuador-wine-cheese

Our North Carolina courses in 2009 will be conducted in the new…

ecuador-wine and cheese

West Jefferson Hampton Inn.

Save $249!   Enroll in our July 24-26 International Investing and Business Made EZ course here

Here is what one reader wrote about our last seminar.

Hi Gary, Just a note to express our appreciation for a great event.  The Naples Beach Hotel provided a comfortable  setting for the gathering. The hotel should be congratulated for the excellent food and service. We enjoyed all of the speakers. I particularly enjoyed John Mauldin. I have followed his writings over the years.  In  1994 we attended several of your seminars, I enrolled in the Multiple Currency Course and opened an account with Jyske Bank.  This activity has provided us with a nice retirement income over the years. With economic disruptions world wide I decided to become reacquainted  with currencies as an investment tool as a consequence of  my very dark view of the USD’s future.  Keep up the good work. My day is always brightened by your daily emails.

Save $249! Enroll in our July 24-26 International Investing and Business Made EZ course here

Read the entire Telegraph article: Lloyds Bank hit by Obama tax purge at
www.telegraph.co.uk/finance/newsbysector/banksandfinance/5526129/Lloyds-Bank-hit-by-Obama-tax-purge.html

Power Distance Index Profits


Power can bring profits in many ways… the first via the Power Distance Index.

I recently wrote in Ecuador shamans and truth how Merri and I have been drawn more and more back to the USA.   We have enjoyed phenomenal success in Ecuador but we are pioneers… Our investments and business are early in and early out. Ecuador is now really well on its way and for us this is not so fun.

We’ll look at how the Power Distance Index makes Ecuador living better.  First more on PDI.

We’ll still enjoy time in Cotacachi and on the Pacific, but we are arranging for others to take over the day to day so we can  head off on a new adventure.

Part of our next horizon is to make our North Carolina farm much more self sustainable and to share what we learn in the process.

Thinking about this leads me to share some other thoughts on power and the Power Distance Index.

One powerful investing and business idea is to invest in countries with a low Power Distance Index (PDI).

Malcom Gladwell explains this in his newest book “Outliers” a book about what makes  success.

One part of the book looks at the importance of the Power Distance Index in each nation.  This is vital information because it explains how countries differ in their approach to dealing with risk and uncertainty.  The ability to handle risk and uncertainty  in changing times is vital.

Here is how the website www.kwintessential.co.uk describes PDI.

The Power Distance Index (PDI) is one of the five intercultural dimensions developed by Hofstede. In short this cultural dimension looks at how much a culture does or does not value hierarchical relationships and respect for authority.

Examples of cultures with high PDI scores include Arabic speaking countries, Russia, India and China. Those with low scores include Japan, Australia and Canada. See a world map of power distance index scores.

So how does this manifest in a culture or country?

In a high power distance cultures the following may be observed:

. Those in authority openly demonstrate their rank.
. Subordinates are not given important work and expect clear guidance from above.
. Subordinates are expected to take the blame for things going wrong.
. The relationship between boss and subordinate is rarely close/personal.
. Politics is prone to totalitarianism.
. Class divisions within society are accepted.

In a low power distance culture:

. Superiors treat subordinates with respect and do not pull rank.
. Subordinates are entrusted with important assignments.
. Blame is either shared or very often accepted by the superior due to it being their responsibility to manage.
. Managers may often socialize with subordinates.
. Liberal democracies are the norm.
. Societies lean more towards egalitarianism.

The Power Distance Index is a measure of the attitude toward hierarchy.  In short the PDI shows how much people overall, in a country, respect authority.

This index is really important in this rapid changing world because authority almost always lags behind reality.  Authority resists required change to adapt in altering conditions.  Countries with a high PDI suffer from change.

For example the US has a low PDI. Russia has a very high PDI.  Thus during the changing 1980s the Soviet Union disintegrated while the US rebounded and thrived.  PDI differences were not the only reasons for this but when a nation’s leadership cannot communicate with its people…  it cannot sense reality as times shift.

On the subject of the 1980s. Many readers are worried about the current economic downturn.  Current conditions are not as poor as during the twin recessions of the 1980s, when unemployment exceeded 10 percent.  This downturn is on track to be worse… but not yet.

Gladwell writes in “Outliers::  In low power index countries, power is something is something in which power holders are almost ashamed and will try to underplay.  In Austria (a low PDI country)  Prime Minister Bruno Kreiskt was known to sometimes take a streetcar to work.

Here are six countries with high PDIs:
Brazil
South Korea
Russia
Mexico
Philippines
Uruguay

Six Countries with low PDIs:
Austria
Denmark
United States
Ireland
Australia
New Zealand

A low PDI can help a country adapt faster and better to change, so look for investments in countries with low PDIs. 

This message is an excerpt from our latest multi currency lesson.  You can read what to do now as a multi currency subscriber. Learn how to subscribe here.

However countries with high PDIs are often better for living.

I was thinking about this one recent morning while visiting Quito.  This is one of the world’s beautiful cities so I rose to watch the dawn.  The day broke in glorious rose patina.

power-distance-index

Like the days ahead…  the view was obscured until the light began…

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to reveal Quito’s beauty.

Ecuador’s Power Distance Index in Ecuador is a bit high. This does not stop a great city from growing. I loked out and saw that there was plenty here.  Riches enough.  All the …

power-distance-index

creature comforts…

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glowing in the daybreak.  Every material thing a person could want…

power-distance-index

As the light spread, i dressed and rode up to the hotel restaurant.

power-distance-index

I’ll looked out at Quito again in the light of day.

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There is amazing wealth here. The hotel restaurant is opulent.

power-distance-index

With amazing views around the city.  yet the prices here are low in part because…

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poor government is created with the help of a high Power distance Index. This  keeps most of the people in Ecuador poor.  This means that we can help bring and spending our money here.   This who do, help Ecuador’s poor and are rewarded with good living at a low price.

This reinforces what I wrote in “Multi Currency Bank Safety

Live in one country
Bank in a second country
Invest in many countries
Earn in two or more countries
Use a company incorporated in a fifth country
Take a second residence

On the subject of banking abroad Denmark has the second lowest PDI in the world (Austria is number one) so it is not surprising that for the last 20 years my major bankers have been in Copenhagen and Vienna.  I like the autonomy that investment advisers have in low PDI countries.

This is in my estimation one reason why Jyske Bank (Denmark’s second largest bank) was not caught in the sub prime or Madoff scandals.

Bank’s in countries with a low PDI are more likely to use the wisdom of their entire organization to head off trouble at the pass.

Organizations have enormous wisdom.

The book, “The Wisdom of Crowds, Why the Many are Smarter than the Few and How Collective Wisdom Shapes Business, Economies and Societies and Nations” by James Surowiecki tells how potent the wisdom of a group can be.

The book begins by telling how at the annual West of England Fat Stock and Poultry Exhibition in the fall of 1906, a British scientist became interested in a weight judging competition. 800 people, smart, dumb, old, young in all types of professions guessed the weight of two dressed oxen. The correct answer was 1,197 pounds. The scientist’s research found that the collective estimate was incredibly close, 1,198 pounds.

The book suggests that there is an uncanny and generally unconscious collective intelligence at work. The book shows how clouds of birds seem to move in one mind but actually are each acting on their own following four simple rules:

#1) Stay as close to the center as possible.

#2) Stay two body lengths away from your neighbor.

#3) Do not bump into another bird.

#4) If a predator dives at you get out of the way.

The book suggests that rather than crowds being mindless mobs that the many are weirdly smart and effective even when many of the group are average or below in intelligence or experience.

A key point that the article makes is that there is incredible effectiveness in a diversity of individual intelligences and this is why we are sharing ideas about trends at this site. There are thousands of us reading these messages so perhaps our problem solving ability grows to the 4000th power.

However if a high PDI disconnects its leaders from this wisdom… the organization’s wisdom is wasted.

Bank safety is vital now and PDI can count. Here is a wonderful shot taken by our friend Dennis Goff.  Placid… yet most travel accidents… in air and by oat are caused by a high PDI. The Captain does not listen to his crew!

When you travel… wen you bank… when you invest look for low PDI!

High Energy Sunrise

This is why you may want to join me with the staff of Jyske Global Asset Management in Naples Florida to learn more about where in the world to invest now.  Learn how to attend this course free and save $499 to $750.

Until next message good global investing!

Gary

One of the best ways to prosper in this downturn is with your own internet business. You can enroll in our email internet course here for $299. However if you sign up for all three courses in June or later in 2009, I’ll send it free. You save $299. Learn more here

Get our web based course FREE if you join us in Ecuador. Learn more here.

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 Florida Investment Course

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

Multi Currency Breakdown


See the multi currency breakdown of my portfolio below.

Yesterday’s message on multi currency bank safety mentioned that multi currency safety is as important as bank safety. Investors who do not have multi currency diversification can end up holding assets in a safe bank but with a worthless currency.

This is one reason why I have such a large percentage of my portfolio in real estate…carried at cost.  All of our real estate has been purchased at prices well below even the current market. We spend a lot of time researching and searching and fixing because I love working with buildings and land. This is the most important investing lesson of all…do what you love…with those you like.

Really…I would much rather play at making land like this worth more than fiddling with stock charts.

Multi-currency-love

I receive many emails like this:

In this current and, I believe, temporary ‘strengthening’ of the US dollar, I am looking for ways to preserve my assets. I have a lot of faith in the Australian $. The 2 obvious benefits in my mind are, no capital gains if/when the US$ weakens, plus I earn interest on the Australian dollar account. I am also looking to buy silver and I am looking at coins and bullion, any suggestions in this arena would also be appreciated. Thank you,

To invest in just one currency is speculation. Nothing wrong with that, if you know and accept the consequences of speculating incorrectly.

To me, real estate is so much more interesting…a puzzle to be worked filled with mystery that beckons like our hidden horse barn tucked away in the woods…just waiting for value to be added.

multi-currency-barn

Gold is nice also…in the leaves here during the leaf change or the yellow metal…a bit for insurance …but more is speculation as well. Property however almost always has utility…like our home.

Holding several currencies for multi currency diversification is better for most.

As it happens I have not felt good about Australia’s currency as you will see in my multi currency breakdown below.  In my opinion, too many investors are betting too much on t based as a commodity currency.

Here are three trends I have been aiming my multi currency diversification towards.

#1: A return to value. Value investing has long been our philosophy. No reason to change now but other investors have been chasing the easy, fast bucks in rapid appreciation. Look for a shift towards owning high yielding, solid boring shares and bonds.

#2: Real estate. The real problem investors face is not an economic meltdown. Inflation is the genuine risk because governments have proven that they will flood markets with liquidity to avoid the meltdown. Inflation means that cement will cost more. So too will steel and labor. This means a rise in labor. I salivate when this fundamental meets a global real estate correction and am buying so much real estate I scare myself.

#3: A shift to underlying currency value. Where does an investor go when the euro is no longer trusted and the dollar is fundamentally weak but suddenly flexing muscles it should not have? My guess (and here I am overweighted ) is investors will lean towards currencies of small, economically sane, solid, established, politically sound countries…such as Norway, Sweden and Denmark. If so, these currencies will rise versus the euro and dollar. If I am wrong, they are least likely to fall.

All of this brings us to the point of this lesson. If you travel and visit currency and forex trading rooms of large established, successful trading operations, you’ll note that there are very few, old traders. Young men and young women do this job because experienced investors know that currency trading, rather than diversification requires immense capital, continual diligence, almost unlimited discipline and the ability to absorb many small losses before making a big hit. Plus traders must have the emotional stability to not let the big lead them astray! This is an error that has allowed one trader to break many a bank and major firms’ backs…..Coutts…AIG are two examples.

Here is my currency breakdown:

US & Ecuador Real Estate 50.12%

Europe EUR 16.05%

Denmark DKK 9.03%

United States US$ 8.46%

Britain GBP 4.01%

Sweden SEK 3.16%

Hungary HUF 2.37%

Turkey TRY 2.1%

Brazil BRL 1.28%

Canada CAD 1.18%

Norway NOK 1.15%

New Zealand NZD 1.09%

Australia AUD 0%

I am now readjusting this breakdown and will review why in my Multi Currency Course.

Learn how to subscribe here.

Gary

Join Merri, me and Jyske Global Asset Management at one of our courses. We review economic conditions, Ecuador real estate, my entire portfolio and our multi currency breakdown plus investing and business ideas for the months ahead.

International Investing and Business Made EZ Ecuador
https://www.garyascott.com/catalog/international-business-made-ez-ecuador

Stay on for the real estate tour Cotacachi and surrounding areas. We’ll see real estate for sale on this lake.

Ecuador-lake-sites

Plus we’ll see homes at San Miguel and Prima Vera II.

cotacachi-ecuador-san-miguel

Primavera II $46,000 condos.

multi-currency-Ecuador-condos

Nov 10-11 Cotacachi-Imbabura Real Estate tour
https://www.garyascott.com/catalog/ecuador-real-estate

Then travel to the coast and enjoy this Pacific surf that in November is warm!

Ecuador real estate for sale .

Salt or fresh water

Ecuador real estate for sale

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

See discounts for two or more of these courses and tours

Multi Currency Bank Safety


Multi currency bank safety has become a big concern in these troubled times. Trust has been eradicated from the system which leaves investors wondering more about risk.

Today is my 62nd birthday and I would like to thank you for sharing the day with me.

I will do almost anything to learn ways to help you. Here’s proof of the pudding.

Ecuador-Healing-Springs

This may look like I slipped and fell in the mud.

Actually I was trying out a little known volcanic pool near our home on Ecuador’s Pacific coast. The clay is said to purify and heal. Here I am in that pool with the natives!

Ecuador-healing-mud

Imagine this. I can now collect Social Security. I will, but this decision has nothing to do with retirement. See why and how my decision can help your wealth at Multi Currency Diversification.

Merri’s and my health, energy and vitality are good. We love what we do. Why not keep on going especially in these fun filled, challenging times of incredible opportunity?  But to take advantage of the opportunity we have to be sure we are not wiped out in the current volatility.

So let’s look at bank safety and since we share so much about Ecuador at this site, let’s look at Ecuador’s banks first.

Then we let’s look at the five safest banking countries in the world.

No bank can have a better credit rating than the country it is in!  Instead of looking at banks, Ecuador as a nation has a B3 Moody’s rating, CCC Fitch rating and B- from Standard & Poor’s. These ratings are somewhere between “highly speculative” and “substantial risk.” No matter how you cut it…the credit agencies are all saying “do not leave a lot of money laying around in Ecuador”. We just finished a lesson on what all the credit ratings mean in our multi currency course.

This is probably not an issue for most multi currency investors because they cannot even have an Ecuador bank account. We continually research to get answers to questions from our Ecuador Living subscribers.

One subscriber recently asked if non residents can open Ecuadorian bank accounts. Here is a reply from our attorney.

“We’ve spoken to quite a few banks about the subject lately and they all
require that the foreigners be residents for them to open a bank account
(checking account). Some banks, however, will allow non residents in the
process of obtaining residency to open a savings account. I will check with
some other banks but this does seem to be a general policy among them.”

If you have questions about Ecuador subscribe to Ecuador Living. We do our best to answer them.

Merri and I do not have a bank account in Ecuador. This has nothing to do with residency or bank safety. Our basic asset protection banking philosophy, which I originally published in the 1970s in my first book “Passport to International Profit,” is even more valid today than it was over 30 years ago. This is:

Live in one country
Bank in a second country
Invest in many countries
Earn in two or more countries
Use a company incorporated in a fifth country
Take a second residence

Since Merri and I live the most in Ecuador and the US, we do most of our banking elsewhere.

We use our ATM card to live on when in Ecuador. Our bank in Cotacachi is here.

ecuador-bank

In this Cotacachi square.

ecuador-square

So where should a multi currency investor do the majority of his or her banking? Multi currency investors do not want to hold a good multi currency basket of investments in a bad bank…or even worse in a country where banks are unsafe.

A recent message Economic Safety in Troubled Times showed one way to gain US dollar bank safety in North Dakota.

There is even more safety a bit further north. Canada it appears may be one of the safest places to bank. Canada has many wonderful sites and scenes such as this British Columbia shot taken by our friend Dennis Goff.

High Energy Sunrise

Dennis by the way has a great web site about Ecuador at www.e-quator.net

I am really glad to see this and explain why in a moment. First, let’s review Canada and bank safety.

Canada has great bank safety according to a Yahoo Canada article entitled “Canada rated world’s soundest bank system” by Rob Taylor says: Canada has the world’s soundest banking system, closely followed by Sweden, Luxembourg and Australia, a survey by the World Economic Forum has found as financial crisis and bank failures shake world markets.

But Britain, which once ranked in the top five, has slipped to 44th place behind El Salvador and Peru, after a 50 billion pound ($86.5 billion) pledge this week by the government to bolster bank balance sheets.

The United States, where some of Wall Street’s biggest financial names have collapsed in recent weeks, rated only 40, just behind Germany at 39, and smaller states such as Barbados, Estonia and even Namibia, in southern Africa.

The article listed the top five safest countries as:

Canada
Sweden
Luxembourg
Australia
Denmark

Singapore was 13th and Switzerland 16th.

The current economic correction has reduced bank safety but there is another reason to be a multi currency investor. The current bailout will create inflation and currency corrections…including further weakening of the US dollar.

This leaves investors with three options:

Multi Currency Option #1: Earn more.

Multi Currency Option #2: Hold assets in other currencies.

Multi Currency Option#3: Live where life is good but costs are low.

This is why the focus of our three sites have these focuses, #1: to help develop small international businesses; #2: invest in many currencies and #3: live in Ecuador.

Our fourth focus is on natural health.

We enjoy Ecuador because life is good there. Prices are low and there are many natural health benefits.

However there are some risk…not in banking, not from Ecuador’s government and not from crime or civial unrest. The most realistic risk is from lack of experience in a new found place.

Earlier in this message I mentioned Dennis Goff’s new blog at www.e-quator.net. The blog features the Wall & Madison business run by Bob Lofgren and Deborah Nance. Dennis, Bob and Deborah are all long term readers who have become friends with Merri and me over the years.

Bob & Deborah were among the first readers to move to the San Miguel gated community. Here is a group of our real estate tour delegates visiting San Miguel.

cotacachi-ecuador-san-miguel-visit

There are some very wonderful homes here. I helped one of my readers sell his recently for $85,000.

cotacachi-ecuador-san-miguel-house

Here is a typical San Miguel Home.

Let me say right here, that I have nothing financially to do with San Miguel in any way. I live nearby and most of the houses and lots in San Miguel are owned by readers. Otherwise I am not involved.

Bob & Debroah have started a business to help San Miguel owners because of a problem Deborah described in this note to me.

Gary, As you know, who you trust down here makes all the difference in the world. What should be one of the best experiences of your life can turn out to be a nightmare if you work with the wrong people. There are westerners here who came to Ecuador late in life with no money to make their fortunes before it is too late, and will tell a buyer anything to make the sale. Our attorney has examined contracts from two developers and says they won’t hold up in court. One contract was taken before a judge and pronounced completely useless. Being foreigners, buyers have very little legal recourse if they get hooked by one of these people.

Robert and I are not wealthy people, but we have enough money to live comfortably for the rest of our lives. Given the spectacular scenery, clean air and water, abundance of healthy food and sweet people, we certainly feel rich living here. Many people will attest that after talking with Robert and being very excited to buy and build, Robert will tell them there is no land rush, and to go home and think about it and be sure buying in San Miguel is what they really want to do. We care a lot more about our souls than our pocketbooks. We started Wall and Madison, not to make our fortunes, but to be of service and to do things right. Just yesterday two women from New Zealand were here. They told Robert that they had traveled all over the country, and the construction here at San Miguel is the best they had seen in Ecuador. Unfortunately, even the Ecuadorian builders who are honest often have no idea of Western standards.

Robert and I have spent a great deal of time and gone to a great effort, along with our attorney, to see that Wall and Madison is entirely legal and above board. Ecuador doesn’t exactly make it easy to comply with the law. Perhaps that is why most developers don’t. It really is a buyer beware situation down here. So I am glad that you are willing to feature Wall and Madison with your readers. I can promise you that we won’t let you down.”

You can learn more at www.e-quator.net

Safety appears to be more important in troubled times…but really finding safety with the banks, the people and currencies you deal with is ALWAYS important.

This is why multi currency safety is as important as bank safety. Investors who do not have multi currency diversification can end up holding assets in a safe bank but with a worthless currency. Do not miss tomorrow’s message as it reviews my multi currency diversification now.

Gary

Join Merri, me and Jyske Global Asset Management at one of our courses. We review economic conditions, Ecuador real estate, my entire portfolio and natural awakenings to health and wealth with investing and business ideas for the months ahead.

International Investing and Business Made EZ Ecuador
https://www.garyascott.com/catalog/international-business-made-ez-ecuador

We’ll look at potential of real estate for sale on this lake.

Ecuador-lake-sites

and the value of Ecuador homes at San Miguel and Prima Vera II.

cotacachi-ecuador-san-miguel

Primavera II $46,500 condos.

multi-currency-Ecuador-condos

We’ll review review potential on Ecuador’s coast.

Ecuador real estate for sale

Salt or fresh water

Ecuador real estate for sale

Join me with the staff of Jyske Global Asset Mangement in Naples Florida to learn more about where in the world to invest now.  Learn how to attend this course free and save $499 to $750.

Until next message good global investing!

Gary

One of the best ways to prosper in this downturn is with your own internet business. You can enroll in our email internet course here for $299. However if you sign up for all three courses in June or later in 2009, I’ll send it free. You save $299. Learn more here

Get our web based course FREE if you join us in Ecuador. Learn more here.

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 Florida Investment Course

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