Tag Archive | "Banker"

Retire in Ecuador – Beat Inflation


A good reason to retire in Ecuador or away from your home is to beat inflation.

Yesterday’s message looked at reason why inflation is not a problem now… but it will be… probably in a serious way.

See below three ways to beat inflation.

First… live or retire in Ecuador or any country where the cost of living is low.

These nice houses in Cotacachi were offered at $49,000.  That beats inflation when you retire in Ecuador.

retire in ecuador

Costs are low. This fixer upper in Cotacachi has an asking price of $30,000 with…

retire in ecuador

a huge yard filled with mature fruit trees and…

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this view.

Second, invest in land or commodities.

A long time friend Steve Rosberg whom I first met when he was my banker in Ecuador recently sent me this note as he operates a timber plantation and real estate development in Argentina.

Gary, During our visit to New York two weeks ago, a friend and former colleague from my banker days pointed out that Latin America had been the perfect training ground to succeed in the current investment environment. I agree 100%.

In case there was any doubt, California’s  issuance of IOU’s to settle short term debt was the final confirmation, and was rapidly followed up by other corollary events, such as banks stating that these could not be accepted as deposits. This would be obvious to anybody thinking about it, but apparently, most people weren’t.

Those IOUs are a different ‘currency.’ They are a currency which you will see more of in the future, as the issuer (the CA government) is still running deficit budgets, and no new voluntary lenders are rushing in to fund them.

Decidedly a  scenario familiar to those of us who have been through a number of LatAm crises. If an Argentine president tried to pass those IOU’s off, nobody would be foolish enough to take them in the first place, and the international press would ridicule the plan as another example of LatAm fiscal impropriety.

Meanwhile, the debate seems to rage between “Are we going deeper into recession? Are we going into high inflation? Are we going into stagflation?”

The answer is yes, absolutely!

How do we position our portfolios to make the best of this without taking on more downside risk?

This is the crux of why we have developed our business as we have:

– to have growth even if there is recession (the trees keep growing, the vineyard too),
– to have value even if there is high inflation (timberland, vineyard, hotel, all real, appreciating assets that will both protect the real value of your initial investment from inflation’s erosion and generate cash flows that will also increase in this scenario),
– to have current revenue originating in the sustainable production of real assets,
– to do so in environmentally responsible ways, and
– to enjoy what we are investing in.

In short, what you want now for the long run.

We continue to believe that debt free assets producing real commodities and generating solid returns are the antidote to portfolios stricken by the poor performance of supposedly safe, “mainstream” assets, and will continue to be so going forward.

Yes, we’re from Argentina, that means we’ve been preparing for these markets for decades. Our customers didn’t lose money last year-they made it.

Visit our website and write back for more information, it’s always our pleasure to be in touch with you.

With best wishes, Steve Rosberg  www.ushay.com

Third, invest in commodity based equities.

The excerpt below is from our Multi Currency course and shows why global inflation is a problem.

A recent article in the Economist showed that the US deficit could be three trillion dollars in 2010.   Half of this would come from borrowed funds.  Normally this would cause the US dllar to fall versus other currencies.

A free fall in purchasing power of all currencies is also more likely than in previous recessions (1970s and 1980s), because then, the US overspent but other major governments, especially Germany and Japan, were still conservative and fiscally prudent.

This is no longer true. West Germany unhinged fiscal common sense when it absorbed Eastern Germany.

Excerpts from a May 14, 2009 article in the Financial Times entitled “Germany set to suffer record deficit” by Bertrand Benoit says:

The German government will record its biggest post-war budget deficit this year as the economic crisis sends tax revenues plummeting, Peer Steinbrück, finance minister, said on Thursday.

Mr Steinbrück admitted the federal deficit would exceed €50bn in 2009 and rise to €90bn next year, more than twice the previous record of €40bn set in 1996 as Germany was absorbing the huge cost of its unification. In contrast, the federal deficit last year was only €11.9bn..

Germany and Japan have both been hit especially hard by this recession because their economies have been so dependent on exports and global trade.

Germany has a huge amount of short-time working and its exports have fallen dramatically.  Like almost everywhere, government income is dropping as spending is on the rise.

If the German economy were to continue to shrink at its current pace, it will be a 20% smaller by the end of 2009.

This means Germany remains in default (as does France, Italy and Spain) of the three per cent limit in the EU stability pact.

All eurozone countries, but especially those with larger deficits, such as Italy and Spain, face a similar problem…  rising costs… aging populations… growing pension and health costs while faced with reduced income.

Asia Troubled As Well

This year, Japan suffered its first annual trade deficit in nearly three decades and business has slowed dramatically there. Global demand for Japanese products plummeted in 2008 and exports were down 16% in the year to March 2009 compared to 2008.

Hong Kong’s economy gives a glimpse into China’s economic soul and here business also contracted at the fastest rate since the Asian financial crisis.

The first three months of 2009 had the biggest drop in more than half a century.

The Hong Kong government predicted that GDP would contract by up to 6.5 per cent in 2009.  Total exports dropped 22.7 per cent in the first three months of 2009 compared with the previous year – the biggest drop since 1954. Overall investment fell by 12.6 per cent and private consumption by 5.5 per cent. The unemployment rate also rose to a 38-month high of 5.2 per cent in the first quarter.

Huge Economic Problems

Huge economic problems create huge investment opportunity and one of the greatest problems facing the world is that education has not evolved as fast as democracy.  Too many poorly educated voters expect their government to do more than they can… or should.  The voter’s desires and expectations are ill informed and generally incorrect… yet their vote is as powerful as an educated one.

This forces politicians to act (spend) more than they have.  This tends to create inflation.   This rather predictable fact has become increasingly global so choosing a strong currency becomes increasingly hard.  Most currencies are at risk to inflation.

This is why stocks, commodities, real estate and your own business makes so much sense now.   There is a caveat.  Always invest in good value in these things.

This is why my attention was really captured when I read about the ALTIS Global Resources Fund.

This is a fund that invests in commodity backed equities and is advised by value guru Michael Keppler.

If you are a new reader learn about Keppler Asset management here.

This creates a powerful combination for opportunity.  The figures below support this.

Michael Keppler recent sent me this note:

Gary, Attached please find the latest Fact Sheet and Performance Review (as of April 30, 2009) for the ALTIS Fund Global Resources, a global sector fund we advise, which was featured in an e-fund journal report of May 4, 2009 as one of the “top 10 natural resource equity funds” based on its 5-year Sharpe Ratio calculated by Lipper.

This fund seeks long-term growth of capital by investing primarily in equity securities issued by companies located anywhere in the world with business operations in the energy, natural resources and precious metals sectors.

You can learn more about this share and read this entire multi currency report as a subscriber to our multi currency course.

Economic fundamentals suggest that the price for ending the current recession will be inflation.

Three ways to fight inflation are retire in Ecuador or some other country with a low cost of living or to invest in real estate, commodities or commodity based investments.

Gary

Join us at our North Carolina farm this July or October for our International business & investing seminars below. Learn more about how to fight inflation and retire in Ecuador.

July 24-26 IBEZ North Carolina

Oct. 9-11 IBEZ North Carolina

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

July 24-26 IBEZ North Carolina

Oct. 9-11 IBEZ North Carolina

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

Sept. 17-21 Ecuador Spanish Course
Sept. 23-24 Imbabura Real Estate Tour
Sept. 25-28 Ecuador Coastal Real Estate Tour

Oct. 21-24 Ecuador Import Export Tour

Nov. 6-8 IBEZ Ecuador
Nov. 9-10 Imbabura Real Estate Tour
Nov. 11-14 Ecuador Coastal Real Estate Tour

Ecuador & Bank Privacy


Bank privacy no longer exists. Some years ago I wrote about the insidious tactics that the US and other governments have used to erode financial privacy and personal liberty and pointed out that the problem is that the government does not attack the individual but puts the pressure on the overseas financial institutions. The current additional move by the US government to collect tax is just one more small step.

The quote above might make it seem like I was years ahead of the curve writing about the loss of privacy some years ago.

Actually I was way ahead of the curve because that quote comes from one of the earlier articles posted at this site on July  13, 2000. See that July 2000 article.

However,  may I remind you that the sunshine not only always shines somewhere, it always rises everywhere… every day!

Yesterday’s message looked at Ecuador sunrises and sunsets.

The sun also rises here in the USA.  I took these shots at our farm and…

ecuador-sunrise

and near the farm on the way to the Farmer’s Market.

ecuador-sunset

Glorious.

We live in a quantum world.  Those earthly laws that Newton so accurately described really do seem to work with apples… yet science suggests that our world is not so predictable… every moment… every place contains infinite potentiality for change… something different… something new… something good… or bad.

There are wonderful aspects of living in most places. This is why Merri and I live in Florida, the Blue Ridge and Ecuador.

This is why I have been warning readers since the 1980s to never… ever… hide wealth.  Use legal means of attaining privacy.

These warnings have related mostly to Americans, British and Germans.  These have been the most determined and aggressive taxing authorities.

These warnings have been is a good thing too.  Here is one reason why.

A June 17, 2009 New York Times article entitled E-Mail Surveillance Renews Concerns in Congress shows even deeper concern, explains how bank privacy is really dead.   An excerpt from this article (a link to the entire article is at the end of this message) says:.

The National Security Agency is facing renewed scrutiny over the extent of its domestic surveillance program, with critics in Congress saying its recent intercepts of the private telephone calls and e-mail messages of Americans are broader than previously acknowledged, current and former officials said.

The agency’s monitoring of domestic e-mail messages, in particular, has posed longstanding legal and logistical difficulties, the officials said.

Since April, when it was disclosed that the intercepts of some private communications of Americans went beyond legal limits in late 2008 and early 2009, several Congressional committees have been investigating. Those inquiries have led to concerns in Congress about the agency’s ability to collect and read domestic e-mail messages of Americans on a widespread basis, officials said. Supporting that conclusion is the account of a former N.S.A. analyst who, in a series of interviews, described being trained in 2005 for a program in which the agency routinely examined large volumes of Americans’ e-mail messages without court warrants. Two intelligence officials confirmed that the program was still in operation.

In short not only is bank privacy dead… privacy is dead… morte… gone…finito.

These warnings seem to include Ecuador as well.

Two recent messages, one Ecuador & Banking about new Ecuador financial reporting regulations, and the other Ecuador & Social Security US Social Security regulations relating to those who live and work abroad.

These messages evoked a number of responses from readers asking “How would Ecuador’s tax man know what wealth I have abroad?” and  “How would the Social Security administration know  if I earn in Ecuador?”

My reply is “I do not know how they would know… but I do not do it and do not recommend this because one never knows what will happen!”

There are so many ways the future could be revealed us… but let me give you a clue of just one example where someone hiding wealth could be caught.

My last two Ecuador Living updates outlined details about Ecuador Bank ATM fraud where over 40 people had their accounts cleaned out and how the Ecuador banks immediately made the losses good.   See these updates as an Ecuador Living subscriber.

If there was a cooperation between US and Ecuador authorities investigating this fraud… details of earnings in Ecuador could end up in the US (including SS admin) and details of US wealth could end up in the hands of Ecuador authorities.

We are in a new era of privacy that I have watched unfold during 41 years of doing international investing and business.   Half a decade ago, this site sent this warning in an article The Ultimate Form of Financial Privacy

One should not hide money abroad and rely on bank privacy to protect them. Forget about government attacks. These are bad enough but I cannot begin to tell you the horror stories I have crossed in the past three decades in which bank privacy was blown by bank errors. For example, a London bank mistakenly mailed me the secret bank account of an Iranian diplomat who was hiding money in London. A Viennese banker inadvertently faxed me four pages of private information that could have put several people in serious trouble.  Even a Swiss banker once left his client list with names, addressees and account numbers laying on a table at a seminar were I was speaking with him!

In addition to the onslaught of governments to reduce privacy, there are just too many ways for your wealth to be revealed to use secrecy as a wealth protection tool.

Look for legal ways to keep your financial affairs private instead.

This is why, our friend and attorney, Joe Cox,  joined me and Jyske Global Asset Management (JGAM)  at the recent International Investment Seminar in Naples  Florida.

bank-privacy

Last month Merri and I co-hosted this  seminar with JGAM. Here is Thomas Fischer opening the seminar.

This is why Ecuador’s new financial reporting law and why the overseas Social Security regulations do not bother me much. This is just one more issue to deal with in an increasingly crowded and complicated world.

So let me reiterate what I have been writing for decades.

Bank privacy is dead.  Do not try to hide money.  Use as many legal tactics as you can to preserve your wealth…always keep it legal. This is a never ending game and the opponent… taxation authorities play hardball and they play rough.

Here are three valuable contacts who can help you maintain legal bank privacy.

Joe Cox, our friend and US attorney.

Floridalva Zambrano, our friend and Ecuador attorney.

Thomas Fischer, our friend and overseas banker.

You can get more information direct:

Joe Cox: jcox@coxnici.com

Copy Joe Cox’s  assistant April Barza to arrange a free conference call. abarza@coxnici.com

Floridavla Zambrano: FLORIFLORI58@YAHOO.ES

Thomas Fischer: fischer@jgam.com

Non US residents contact Reny Mathys instead of Thomas Fischer: mathys@jbpb.dk

These contacts know of each other and can help you create a coordinated plan between US Ecuadorian and international banking laws that maintains legal privacy and asset protection.

Plus keep your perspective. The sun shines somewhere everyday. It is the sun we should seek… not to avoid the clouds.

Merri and I love our life in the Blue Ridge… the rushing streams and…

ecuador-banks

the spring flowers peeking into our kitchen.

ecuador-banks

The greatest benefits to living globally  are broadened horizons… larger families, expanded experiences… deeper awareness of the infinite ways that beauty in life can unfold… not tax or privacy benefits.

We love our life in Florida here is a view from one of the houses in our house buying trip.

ecuador-banks

Plus we love our Andean family at Meson… everyone of them.

ecuador-banks

and the majestic mountain views from our condo there.

ecuador-banks

And we love walking Ecuador’s broad beach at our Pamazul apartment

ecuador-banks

We take any tax and asset protection our lifestyle brings, but the lifestyle is driven by the seeking of joy and wonderful living. The financial aspects follow.

One gains greater economic opportunity with global investing and business… bigger markets.. more distortions to see… additional trends to emerge.

Don’t diminish all the beautiful  sunshine with clouds of financial worry.

Regards,

Gary

We hope you’ll enjoy a beautiful global lifestyle with us soon in the Blue Ridge or Ecuador.

July 4-8 Ecuador Export Tour

July 8-9 Imbabura Real Estate Tour
July 10-13 Ecuador Coastal Real Estate Tour

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

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

July 24-26 IBEZ North Carolina

Sept. 17-21 Ecuador Spanish Course
Sept. 23-24 Imbabura Real Estate Tour
Sept. 25-28 Ecuador Coastal Real Estate Tour

Oct. 9-11 IBEZ North Carolina

Oct. 21-24 Ecuador Import Export Expedition

Nov. 6-8 IBEZ Ecuador
Nov. 9-10 Imbabura Real Estate Tour
Nov. 11-14 Ecuador Coastal Real Estate Tour

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

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

Read the New York Times article: E-Mail Surveillance Renews Concerns in Congress shows even deeper concern, at http://www.nytimes.com/2009/06/17/us/17nsa.html

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…

ecuador-banking

a bank with an ATM… plus

ecuador-banking

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

Brazil Multi Currency Opportunity


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

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

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

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

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

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

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

multi-currency-debt

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

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

ecuador-tickets

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

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

Sideways motion like this destroys most investors.

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

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

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

Of three things we can be sure.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Sleepy Safe Portfolios Can Earn Over 100% Per Year

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

Yet multi currency portfolios can be really profitable as well.

How sleepy and how safe?

Let’s look first at sleepy.

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

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

How safe?

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

Okay. Here is the big question. How profitable?

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

Suppose we get more specific.

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

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

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

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

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

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

Canada
Sweden
Luxembourg
Australia
Denmark

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

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

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

That’s safe!

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

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

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

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

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

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

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

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

Here is our educational performance over the past few years.

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

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

Amount

Currency

Investment

75,000

Rupee

Jyske Invest Indian Equity Mutual Fund

75,000

Yuan

Jyske Invest Chinese Equity Mutual Fund

75,000

Yen

Jyske Invest Japanese Equity Mutual Fund

75,000

Multiple

Jyske Invest Emerging Market Bond Fund

Investments Total Value 300,000.00

Invested $100,000

Loan $200,000 100.00% JPY at 1.63%

Loan cost for one year $3,260.

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

Chinese yuan, Indian rupee, Japanese yen and more.

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

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

Amount

Currency

Investment

75,000

Rupee

Jyske Invest Indian Equity Mutual Fund

75,000

Yuan

Jyske Invest Chinese Equity Mutual Fund

75,000

EUR

Jyske Invest Eastern European Equities

50,000

Asian

Jyske Invest Far Eastern Equities

25,000

Lira

Jyske Invest Turkish Equities

Investments Total Value 300,000.00

Invested $100,000

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

Loan cost for one year $7,750.

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

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

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

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

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

Yet believe it or not some portfolios did even better.

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

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

2006 Portfolio

US Dollar Long

9.04%

US Dollar Short

10.43%

US Dollar Hedge

11.46%

Emerging Market

42.93%

Asia Emerging Market

114.16%

2007 Portfolios

Dollar Neutral

38.67%

Dollar Short

48.19%

Swiss Samba

53.32%

Asia Emerging Market

122.62%

Green

266.30%

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

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

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

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

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

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

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

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

2008 Portfolios

Infrastructure Portfolio

-112%

Blue Chip Portfolio

-79%

Danish Health Portfolio

-92%

Asia Emerging Market

-73%

Green

-56%

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

This lesson led to a quick profit.

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

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

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

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

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

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

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

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

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

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

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

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

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

brazil-distortion

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

brazil-distortion

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

brazil-distortion

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Is this course for you?

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

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

Gary Scott

Multi Currency Portfolios Course. Subscribe

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

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

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

multi-currency-debt

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

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

brazilian-bond-distortion

talking among themselves during the coffee brakes and at meals.

brazilian-bond-distortion

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

brazilian-bond-distortion

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

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

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

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

brazilian-bond-distortion

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

Save $175!  Receive the emailed course free when you Enroll in our July 24-26 International Investing and Business Made EZ course here

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

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

From an Unknown Reader

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

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

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

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

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

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

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

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

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

“Warm regards,”

C.M. CALIFORNIA Businessman

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

B.W. MONTREAL CANADA Professor

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

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

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

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

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

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

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

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

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

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

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

Save $175!  Receive the emailed course free when you Enroll in our July 24-26 International Investing and Business Made EZ course here

The Ultimate Form of Financial Privacy


The message from our reader below shows that some of you still do not believe me so I have to repeat again that bank privacy has slowly been eroded over the past thirty years and I cannot see why the trend will not continue.

Gary

Gary: I read your article on loss of bank privacy, t’is true. Where internationally could one put US mutual funds? Is there any safe haven with bank privacy in the world anywhere now that you could recommend?

W.

One should not hide money abroad and rely on bank privacy to protect them. Forget about government attacks. These are bad enough but I cannot begin to tell you the horror stories I have crossed in the past three decades in which bank privacy was blown by bank errors. For example a London bank mistakenly mailed me the secret bank account of an Iranian diplomat who was hiding money in London. A Viennese banker inadvertently faxed me four pages of private information that could have put several people in serious trouble. A Swiss banker once left his client list with names, addressees and account numbers laying on a table at a seminar were I was speaking with him.

There are too many ways to get caught in addition to the onslaught of governments to reduce privacy. Look for legal ways to keep your financial affairs private instead. One such way is through the use of overseas insurance policies.

Get more details from our frend and attorney Joe Cox at jcox@coxnici.com

Good investing!

Gary

Return to Ecuador & bank privacy

2009 Update

We hope you’ll enjoy a beautiful global lifestyle with us soon in the Blue Ridge or Ecuador.

July 4-8 Ecuador Export Tour

July 8-9 Imbabura Real Estate Tour
July 10-13 Ecuador Coastal Real Estate Tour

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

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

July 24-26 IBEZ North Carolina

Sept. 17-21 Ecuador Spanish Course
Sept. 23-24 Imbabura Real Estate Tour
Sept. 25-28 Ecuador Coastal Real Estate Tour

Oct. 9-11 IBEZ North Carolina

Oct. 21-24 Ecuador Import Export Expedition

Nov. 6-8 IBEZ Ecuador
Nov. 9-10 Imbabura Real Estate Tour
Nov. 11-14 Ecuador Coastal Real Estate Tour

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

Return to Ecuador & bank privacy



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