Tag Archive | "Correa"

Running Out of Other People’s Money


There were nine Ecuador presidents during the first ten years Merri and I lived in Ecuador.   Then along came Correa who has been President of Ecuador for eight years.

correas visit cotacachi

President Correa stayed with us at Inn Land of the Sun when we owned the hotel. Here he is with hotel staff.

Correa has done many great things, but socialism, especially in a poor country to begin, reaches the proverbial rocks and hard spots when spendy governments run out of other people’s money to spend.

An Economist article “Scraping the barrel – Will Ecuador turn into Latin America’s Greece?” points out that Presdident  Correa leads a strong and hitherto popular government but is running out of money and the citizens are starting to turn against him. In June, in the biggest of many protests, some 350,000 people took to the streets of the port city of Guayaquil to demonstrate against plans to impose punitive additional taxes on inheritances and gains from property transactions.

The article explains how low oil prices, a strong US dollar (Ecuador’s currency) have caused independent economic forecast of no growth or a mild contraction this year and next.

One huge problem is that the driver of growth has been mostly public, rather than private, investment.  According to the IMF 44% of GDP in 2013 was government spending.  The claim is that the many business  taxes create a lack of confidence,so companies don’t invest.

So far Correa has used oil revenues, big Chinese loans and a bond default to finance spending.  Now the government faces a $7 billion or so deficit.  That is  7% of GDP.

The government has issued $1.5 billion of new bonds but the interest rate is a high 10.5%.  The administration has also created electronic money and Central Bank paper.   These are steps in the wrong direction because investors fear being switched out of the dollar into fiat Ecuador currencies that are even weaker than the greenback.

Opposition to Correa is growing  as he is trying to change the constitution to allow his indefinite re-election.  Chances are that Correa will persist and this will create quite some conflict in the country at a time when the government needs to focus on economics rather than politics.

These problems could lower the cost of living in Ecuador but raise the risk of taxes on expats.  If you are thinking of moving to Ecuador, consider moving your body, but leaving your money elsewhere.

Gary

(1) Scraping the barrel – Will Ecuador turn into Latin America’s Greece?

Learn Spanish in Three Days ONLINE

The “Learn Spanish in Three Day Course” is now available online.

Learn Spanish in a day, or a week, month or any time frame that works for you.

I’m Gary Scott.  Over fifty years ago I started a business that has helped hundreds of thousands of subscribers learn about investing in Hong Kong (1960s and 1970s), Switzerland, London, Isle of Man (1970s and 1980s) and across Europe.  In the 1990s we took investors to Panama, Mexico and Ecuador.  That’s when we realized an incredible need for an easy way to learn Spanish.

See below how my wife Merri was able to create a program that allowed students to be speaking and understanding Spanish in just three days.

Thousands of subscribers have learned Spanish at our three day Super Spanish course.  These courses have been taught across the US, in Canada, Panama, Mexico, Ecuador, Uruguay and Spain.

spanish

A Super Spanish course in Florida.

Read below to see how and why we are now offering our Super Spanish course ONLINE for the first time.

Speaking Spanish as a second language has huge benefits.

You can become one of the rare North Americans who can get along in Spanish speaking countries.  You can be one of the special people who can communicate with 10 million non-English speakers in the USA.  Spanish is the second most used language in the USA.  There are more Spanish speakers than speakers of Chinese, French, German, Italian, Hawaiian, and the Native American languages combined.  According to the Census Bureau, Spanish is the primary language of nearly 50 million people in the US.  This is the largest Spanish-speaking community outside of Mexico. Only half of these speakers also speak English “very well,” and 19% do not speak English at all.

You become one of a leading few when you speak Spanish.  Yet there are more benefits.

An article in England’s leading newspaper, the Telegraph, entitled “Why learn a foreign language? Benefits of bilingualism” (1) sum up the biggest benefit of learning a second language and increased intelligence.  The article says (bolds are mine): “Learning a foreign language is more than just a boost to your CV or handy for traveling. 

It will make you smarter, more decisive and even better at English. 

Physiological studies have found that speaking two or more languages is a great asset to the cognitive process.  The brains of bilingual people operate differently than single language speakers, and these differences offer several mental benefits.”

The article then explains studies that show seven cognitive advantages gained from learning a foreign language.

#1:  You become smarter
#2:  You build multitasking skills
#3:  You stave off Alzheimer’s and dementia
#4:  Your memory improves
#5:  You become more perceptive
#6:  Your decision-making skills improve
#7:  You improve your English

Does it sound impossible to learn Spanish in three days?  Yes, it is impossible when you try to learn Spanish in the old, traditional way.

You may choose to take more time using the ONLINE course to learn Spanish, but thousands of our readers have learned to speak Spanish in only three days at our Spanish courses.

There is a scientific method of learning… proven and described in numerous best selling books that create educational jumps by making education natural, easy and fun.   This course works because it is education without stress!

A special method of learning (called Super Learning) was created and refined by the Bulgarian educational master, Georgi Lozanov.   Lozanov transformed the entire Soviet educational system to such a degree that this third world country beat the USA into space.

My wife Merri was lucky to be one of a handful of students outside of Bulgaria who were allowed to be taught this system in the early 1970s.  She practiced this unique and remarkable form of education for  four decades. It was a delight!

Merri and I began integrating these techniques with other shamanic and educational tactics we had gained in our global travels and then applied them to teach Spanish in three days.

The course has been proven again and again by the thousands who have used this system.  You can read a few of the many raves we have received from students who have learned from the Super Thinking Spanish course we created.

Here are a few quotes from delegates of the course.

One delegate from St. Louis wrote:  Hi Gary,  Just ended forty-five years in dentistry last week, and I’m on to a new career.  What is my new career?  Still formulating, but the eye -opening,mind expanding Super-Spanish course last weekend in St. Louis surely shows me the opportunity exists to expand my horizons.

Besides having a lot of nice people to learn our new language; the methods Merri and you developed proved to be just what you said they would be.  We all and I in particular relaxed our way to new learning.  I feel so very comfortable with the basis of my new language skills that I know I will be spitting out great Spanish sentences by the time I reach Ecuador in October.  Last year I spent six weeks in Ecuador and now I plan on conversing with the people.

Today’s excerpt of your newsletter really hit home. You do what you say you will. There are no surprises or hidden sales tricks. The only tricks are beneficial to our learning.  Thank you for a wonderful experience that I was quite unable to grasp how you would pull it off.  You did, however, and I look forward to other courses that you offer, and I have absolutely no doubt they also will work beneficially.  Best regards, Denis Molloy.

Another wrote about the Super Spanish course:   Buenos Dias, here is a testimonial for Super Thinking-Super Spanish.  Please feel free to use all or part in promotions for the course.  In addition, you may give my email address to any prospect “on the fence” about enrolling.  Yesterday, in Cotacachi, Ecuador, I finished Super Spanish.  I had high expectations for the course and they were exceeded.

After three days, I can speak Spanish in complete sentences. In simple conversations, such as buying groceries or ordering a meal, I can make myself understood. I think that’s incredible!

Although I am far from the competence level of a native speaker, I feel I’ve taken a giant step forward in learning Spanish so that I can experience the people and culture of Ecuador.  The foregoing benefits would have more than justified the time and money I invested in Super Spanish.  And learning some Spanish was not the most important benefit I got from the course.

Prior to leaving the USA, I had felt for some time that the pace of life there was unhealthy for me (and for most people) and I did nothing about it.

I’ve thought about the pace issue during the course.  One of the key elements Merri Scott designed into Super Spanish is placing the student in the optimal state for learning.  In class, the past three days, I’ve been re-introduced to guided journeys and introduced to the calming effects of Baroque music (www.sundaybaroque.org).  What a blessing! I’m inclined to make one or both a daily part of my life.   Rob Christi.  Cotacachi, Ecuador

Another attendee from a course wrote:   “I took this incredible class a few weeks ago, and I would like to tell anyone that is interested, that it is an amazing three days of learning with lots of laughs included. You leave everyday wanting to learn more and are so excited to do so.

“Other Spanish classes and tutoring made us feel like it would take forever to get to the point where we could put it into practice, but this method gave us a more fluent use for everyday life almost immediately AND the confidence to use it.  It is a fantastic way to show people how much they know and give confidence to learn and use Spanish creating a momentum.

“They made learning Spanish easy and fun in a very relaxed, comfortable atmosphere.  I would definitely recommend this course.  Even if you know some Spanish, this helps make it easier because of the less stress that no verb conjugations gives you.  This gives you more confidence in yourself to try and speak it more.

 “The stress free atmosphere and tons of interaction and participation were very conducive to learning.  The relaxation techniques alone are worth the price.  The fact that I can now feel more comfortable conversing in Spanish with my new friends and neighbors is priceless.  Muchas, muchas gracias.”

“I loved the relaxed environment.  I picked up quite a lot of new vocabulary.  I found this course very informative about how the language works, how I can make sentences and understand others better!  Muchas Gracias!  I had a call from Telcel (the local phone company) after our second class and I was able to speak and understand them for the first time. Despacio (meaning slowly) … a great word!  Everyone should take this course before they pick up bad habits.”

“I liked how simply the course was organized and the positive attitude about learning.  Thank you so much for helping me to learn Spanish!”

“I liked the laid back yet professional approach.  I highly recommend this new, relaxing method of learning Spanish,  I feel a lot more confident in the delivery of my words and sentences. It was taught in an excellent and very professional way.

“It was a very enjoyable class.”

How The Course Works

The first tactic is to use Baroque music to create Relaxed Concentration in the learning process.  At least three best selling books, “Superlearning”, the “Mozart Effect” and “Superlearning 2000” have revealed insights about how to learn and think more powerfully based on systems drawn from the Bulgarian educational master, Dr. Georgi Lozanov.  

Merri was among just a few who learned directly from Lozanov.

gary scott super thinking session

Super Spanish relaxed concentration session.

You gain six valuable ONLINE Relaxed Concentration sessions in the online course that is delivered via the internet.

The second tactic uses 17 unique lessons to provide Spanish fluency in a short time.   Let me prove to you how this tactic works by teaching you hundreds of Spanish words in less than 30 seconds.

Here is the proof.

“Most words in English that end in ION are almost identical, just pronounced differently.  For example action is accion, education-educacion, manipulation- manipulacion, etc.”

There you have it.  How long did it take you to read the sentence?  You now know hundreds of Spanish words that you will never forget.

See examples of the words you already know below.

How long would have taken you to memorize all those words?  How soon would you have forgotten them?

This is just one of seventeen Spanish lessons in the course.

The next lesson teaches how to pronounce each of the nouns.

Then, the third lesson teaches almost as many verbs, almost as quickly.

The fourth lesson shows how to avoid conjugating verbs by sticking with the infinitive (far easier than it sounds).  This simple lesson leaves a person sounding like a Spanish professor without ever conjugating a verb.

Lesson five shows how to sound infinitely polite and yet get almost anything desired in Spanish.

Lesson six gives valuable connectors and the seventh lesson triples the Spanish capacity with three words for “yesterday,” “now” and “tomorrow”.

By the end of three days you feel comfortable speaking Spanish.

Plus the system is Impro-Dynamic.  This means your Spanish keeps getting better even though you do not seem to be studying… practicing… or speaking Spanish.

I was amazed by this as I traveled back and forth from the USA to Ecuador.  The longer I was away from Ecuador… the better my Spanish became.  My second language was automatically improving The self improving feature comes because you learn to create Spanish sentences rather than remember them.  The portion of the brain that creates is more powerful than the portion that recalls.  When your mind creates something… it owns it!  You do not have to remember .

During the course you learn 4005 Spanish words that you already know.   This eliminates the need to memorize 99% of Spanish words.

You then learn how to create Spanish sentences from these words.

Throughout the course you learn how to pronounce the sentences you create.

When the course ends… the mind keeps working… and creating… so next time you begin to speak Spanish you’ll be surprised .  You improve even though you have not actively worked on your lingual skill.

Due to the difficulty of getting groups together to learn this valuable technique, we created an online program for subscribers to use the Super Spanish course at home.   The normal three day course fee is $499 ($749 for a couple).

The ONLINE course is available at the highly reduced price of $79.

I’ll be in touch personally via email with each person who signs up for this course to see how it works or what is required to make it better.  Once this test is complete, we plan to offer the program on a larger scale and at a much higher price.

The ONLINE course has our, full satisfaction or money back, guarantee.  Try Super Spanish for 60 days.  If not fully satisfied, simply let us know for a full refund.

Learn Spanish online $79

Here are more testimonials from previous Super Spanish Courses.

Maggie wrote: It didn’t really seem possible that we would be speaking and understanding Spanish in only 3 days but the course made it happen in a very supportive learning environment.  I would highly recommend this course for anyone wishing to learn “practical Spanish”.  The teaching methods, use of relaxation, the use of native Spanish speakers for pronunciation and the teachers themselves who were approachable and helpful and always positive made this a very valuable class.

This course improved my self confidence in my ability to learn and retain a language.  It was presented with genuine enthusiasm, great energy and the style of learning is very effective. Gracias!  It was a great experience.

Nadine wrote: “Just spent the last 3 days in the most wonderful learning environment learning Spanish.  What an amazing learning experience!!  First day out of class and I could not stop thinking in Spanish WOW!!  I am amazed by how much I learned, retained and how much more is showing up now that I am out of class.  And the best part is THERE WAS NO STUDYING!! Indeed this is Super Thinking!!!  I would highly recommend this to anyone that has ever had a desire to learn another language or learn anything in record time.

And a few days after that ….  As I went through my day, just hanging out with my son, I could see myself starting to think in Spanish.  At first I thought it was amusing but as it continued and increased I thought “My goodness this is really remarkable amazing” It was really an effortless unfolding.  I wasn’t at any point “trying” to think in Spanish, just words I knew would fly across the screen in my mind.  And then this afternoon, my son cuddled up on the couch to watch some cartoons on his ipad and was watching Peppa Pig in Spanish…hmm coincidence?  I think not, I’m radiating Spanish so much that my son is being influenced!  Thanks a million again.  This weekend the best learning experience of my life!!

If you have ever had a desire to learn Spanish this is the way to do it!  By the end of the first day I had more confidence and more practical ability than I had from any previous courses I had taken.  It was fun and relaxed and full of laughter.  You will leave this class excited to use what you have learned.  Rather than leaving overwhelmed with how much you have yet to learn and master, you are equipped with the knowledge and know how to go out and communicate as well as the excitement to do it!”

Gary noted:  “The whole approach is positive and conducive to learning at a level that benefits ALL participants.  It is not intimidating and does not set up a pass/fail atmosphere.  The presenters are terrific and the results unbelievable.  It was relaxed, informal, friendly and effective.”

Twila said:  “This class provided a very refreshing and relaxed way of learning.  The atmosphere felt very safe to say the words you were practicing.  I learned a lot in a way that will make it easy to apply.  Starting with conversation is way more fun.  How quickly you can learn!  It was a great group, great instructors and great stories.

The atmosphere in the classroom was so relaxed that learning Spanish felt like a breeze and not like a painful task.  The relaxation exercises are really conducive to language learning.  We learned A LOT in a short time and it was fun and the environment was non-threatening.”

Brigitte sent this:  “Buenos Dias, Suzanne. su clase de espanol es excelente! Muchas Gracias!  
I have already done what you suggested and went into the program listening to the music and going over the lessons.  I know: Repetition……reinforcement…..thinking in the new language….it’s all part of it.  I loved your course and will certainly recommend it to friends.  Who knows….I might feel the urge and have the opportunity to repeat it at your beautiful place in Puerto Aventuras…..Quien sabe? Hasta otro dia y saludos a su familia.”

Marie wrote:  “I would highly recommend this course.  The amount covered in 3 days is amazing!  All with no stress.  The correlation lessons and pronunciation practice has greatly reduced my anxiety to go out and use my Spanish.  I really enjoyed the whole process and thank you for the take away tools.”

Learn Spanish online $79

Here is the English translation of a few of the many Spanish words you now know and will never forget.  How long would it have taken you to memorize them?  How soon would you forget?

“Most words in English that end in ION are almost identical, just pronounced differently.  For example, action is accion, education-educacion, manipulation- manipulacion, etc.”

Some more of these words:  Combination, Attrition, Education, Vacation, Petition, Lotion, Motion, Construction, Abduction, Pronunciation, Concentration and a ton of others!

Learn Young or Old

Most Super Spanish students are all ages ,

Gary-scott-spanish-course

Super Spanish students at this course ranged from nine to over eighty years old.

Become a Spanish translator!

The wife of one couple who attended explained how after just three days her husband ended up as an accidental translator.

She wrote:  Gary,  I have sent Merri a couple of messages, and  a story of Mike being able to translate yesterday for a Spanish person  who couldn’t understand what a man was trying to tell him!

Does it sound impossible to learn Spanish in three days?  Yes, it is impossible when you try to learn Spanish in the old, traditional way.

The video below shows a super fast way to gain the basics so you can communicate in Spanish in just three days.

Gary-scott-super-spanish

Click here for FREE Super Spanish video.

Still can’t believe you can learn Spanish in a short time?

You have nothing to lose but to try.

The ONLINE Super Spanish course has our, full satisfaction or money back, guarantee. 

Try Super Spanish for 60 days.  If not fully satisfied, simply let us know for a full refund.

Learn Spanish online $79

(1) www.telegraph.co.uk Benefits-of-bilingualism.html

Ecuador, the Big Easy South


One of my favorite feelings in Ecuador is the feeling of ease… at every level… especially when the chips are down.

ecuador-president

For example on a presidential visit I was able to take this photo of President Correa.  Can you imagine the reaction if a stranger in a crowd came this close to the US President’s face?

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See details here.

Ecuador’s El Presidente is not without protection.  This was revealed when President Correa was a special guest at our hotel Inn Land of the Sun recently. (LOTS)

Correa was officiating at the Ecuador Social Security office in Otavalo and used 2 rooms at the Inn for his headquarters while he was in Otavalo, Cotacachi and Ibarra.

This was no surprise. The President of Ecuador has stayed at Inn Land of the Sun before and the staff was expecting security precautions.

correas visit cotacachi

President Correa’s security team discussing details.

correas visit cotacachi

Land of the Sun Inn passing the smell test.

correas visit cotacachi

Security outside Land of the Sun Inn.

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See an agri business investment that can ease to your finances

We hope President Correa enjoyed his time there in the inn.

correas visit cotacachi

Correa comes from a humble background and enjoys greeting everyone.

correas visit cotacachi

Ecuador’s President with our two housekeepers and head of service.

correas visit cotacachi

President Correa with the Inn Land of the Sun manager, Franklin Sandoval, and Shamana, Estella.

All in all it was a busy weekend for the staff and guests, an exciting day with the turmoil one would expect when a national leader arrives.  Yet there was an ease to this event as well… no snipers… no helicopters… and the security people have a sense of friendliness you’ll not feel up north.   In Ecuador the system treats bystanders with dignity… not as potential enemies without respect.  This is Ecuador’s ease.

Gary

Advertisement

The Inn Land of the Sun is for sale. See more about the Inn Land of the Sun

Enquiries please contact Lin Neal at concierge@ateamecuador.com

Gary

We’ll have a review of the Inn’s business potential at our upcoming seminar in Eustis Florida, February 14-15-16.

Multi Currency Value Investing Seminar

Old Accord Creates New Profits – Multi Currency Investments.

Earn more with multi currency stock market breakouts.

Improve Safety – Increase Profits

Learn how to improve the safety of your savings and investments by selecting good value and diversified investments in a multi-currency portfolio.

Few decisions are as important to your wealth as the value of the markets and currencies you invest in.  This has been our area of expertise since the 1970s and we have worked with and advised some of the largest currency traders in the world.

Gain Protection First – Against the Dollar’s Purchasing Power Loss.  In 1913 the The Federal Reserve Act created the Federal Reserve Bank to protect the purchasing power of the US dollar, which has since lost about 94% of its purchasing power.  Here is its price compared with gold since 1900.

priced in gold

Dollar chart from pricedingold.com (1)

The Fed has let the dollar lose most of its strength plus has allowed interest rates to fall so low, that safe investments cannot keep pace with the drop in purchasing power.

multi-currency-chart

Chart from Grandfather Economic Report (2)

Many investors have forgotten about the risk of a falling dollar because the greenback has been strong for the past five years.  This temporary dollar strength came after the great recession of 2009 just as there was temporary dollar strength after the great recession of the 1980s.  Then about six years after the recession, an agreement was made by major governments to weaken the dollar.

There was a severe global economic recession affecting much of the developed world in the late 1970s and early 1980s.  The United States and Japan exited the recession relatively early, but high unemployment would continue to affect Europe and the UK through to at least 1985.  As a consequence between 1980 and 1985, the US dollar had appreciated by about 50% against the Japanese yen, Deutsche mark, French franc and British pound, the currencies of the next four biggest economies at the time. Then the governments reached an agreement and exchange rate values of the dollar versus the yen declined by 51% from 1985 to 1987.

Now the world is again in the same place.  The recession is over.  Europe is a bit behind in recovery and the dollar is higher than before the recession.

There is no reason for the greenback to be  strong.

The agreement in 1985 was called the Plaza Accord.   Over just two years the greenback dropped nearly 50% versus other major currencies.  The next accord will generate great profits for those who know what to do while it ruins the purchasing power of dollar back investments.

The strong US dollar and low interest rates have created one of the biggest stock and multi currency breakout opportunities in history.  Learn how to create a plan to profit from multi currency shifts ahead.

One reason for the potential gains is that stock markets and currency values are cyclical.  Due to low interest rates created by the 2009 economic downturn, the US and a few other equity markets have risen to some of their highest prices, ever.  These markets offer very poor value now.  The steep valuation creates incredible profit potential but also hides some enormous risks.  Learn how to develop an investing strategy based of earnings, cash flows, dividends and book values to increase potential for profit and reduce the risks.

Next Extra Profit Created by Value Breakouts

Over the history of US equity markets, the  price of overall markets have risen about 9.1 percent, respectively, compounded annually.  Yet over more than a hundred years of stock market activity,  a majority of the profits have come from just a very few dramatic breakouts.

Equity markets are ruled in the short term by emotions that create unpredictable ups and downs.  Numerous fears of defaults, worries of double dip recessions, high unemployment, concerns about fiscal cliffs, hold investors back.  Yet global population growth and advances in production and prosperity are relentless economic fundamentals that increase value.

When fear holds back a a fundamentally rising value, rising profit potential grows.  Values increase as prices stagnate.  Then markets break free and rocket upwards creating wealth, prosperity and growth.

Find out which breakouts are likely to take place next.

Stocks rise from the cycle of war, productivity and demographics. Cycles create recurring profits. Economies and stock markets cycle up and down around every 15 years as shown in this graph.

stock-Charts

The effect of war cycles on the US Stock Market since 1906.

Bull and bear cycles are based on cycles of human interaction, war, technology and productivity.  Economic downturns create war.

Here is the war stock cycle.  Military struggles (like the Civil War, WWI, WWII and the Cold War: WWIII) super charge inventiveness that creates new forms of productivity…the steam engine, the internal combustion engine,  production line processes, jet engines, TV, farming techniques, plastics, telephone, computer and lastly during the Cold War, the internet.  The military technology shifts to domestic use.  A boom is created that leads to excess.  Excess leads to correction. Correction creates an economic downturn and again to war.

Learn how the Cyber War (WWIV) may change the way we live and act and how this will affect currencies and investments.

Learn:

* How to easily buy global currencies, shares and bonds.

* Trading down and the benefits of investing in real estate in Small Town USA.  We will share why this breakout value is special and why we have been recommending good value real estate in this area since 2009.

* What’s up with gold and silver?  One session looks at my current position on gold and silver and asset protection.  We review the state of the precious metal markets and potential problems ahead for US dollars.  Learn how low interest rates eliminate  opportunity costs of diversification in precious metals and foreign currencies.

* How to improve safety and increase profit with leverage and staying power.  The seminar reveals Warren Buffett’s value investing strategy from research published at Yale University’s website.  This research shows that the stocks Buffet chooses are safe (with low beta and low volatility), cheap (value stocks with low price-to-book ratios), and high quality (stocks of companies that are profitable, stable, growing, and with high payout ratios), but his big, extra profits come from leverage and staying power.  At times Buffet’s portfolio, as all value portfolios, has fallen, but he has been willing and able to wait long periods for the value to reveal itself and prices to recover.

keppler asset management chart

This chart based on a 45 year portfolio study shows that holding a diversified good value portfolio (based on a  good value strategy) for 13 month’s time, increases the probability of outperformance to 70%.  However those who can hold the portfolio for five years gain a 88% probability of beating the bellwether in the market and after ten years the probability increases to 97.5%.

Time is your friend when you use a good value strategy.  The longer you can hold onto a well balanced good value portfolio, the better the odds of outstanding success.

Learn how much leverage to use.  Leverage is like medicine, the key is dose.  Buffett leverages his portfolio at a ratio of approximately 1.6 to 1.  This rate of expansion by the way is called the “Golden Ratio”.  It is a mathematical formula that controls the growth of most natural things; trees, the shape of leaves, the spiral of shells, as well as the way economies and societies grow.

We’ll sum the strategy, how to leverage cheap, safe, quality stocks and for what period of time based on your circumstances.

Learn to plan in a way so you never run out of money.  The seminar also has a session on the importance of having and sticking to a plan.  See how success is dependent on conviction, wherewithal, and skill to operate with leverage and significant risk.  Learn a three point strategy based on my 50 (almost) years of investing experience combined with wisdom gained from some of the world’s best investment managers and economic mathematical scientists.

Enjoy investing more with slow, worry free, good value investing.  Stress, worry and fear are three of an investor’s worst enemies.  These are major foundations of the Behavior Gap, a trait exhibited by most investors, that causes them to underperform any market they choose.  The behavior gap is created by natural human responses to fear.  The losses created by this gap grow when investors trade short term under stress.

Learn how to put meaning into your investing by creating profitable strategies that combine good value investments with unique, personal goals.

Learn how to span the behavior gap.  Behavior gaps are among the biggest reasons why so many investors fail.  Human evolution makes fear the second most powerful motivator.  (Greed is the third.)  Fear creates investment losses due to behavior gaps.  Fear motivates us more strongly than desire.  By nature investors are risk adverse, when they should embrace risk.  Purpose is the most powerful motivator,  stronger than fear and greed.  One powerful way to overcome the behavior gap is to invest with a purpose.

Combine your needs and capabilities with the secrets and the math of our good value model portfolio.

Share ideas about my good value portfolio.  My personal investment portfolio comes from a continual analysis of international stock markets and a comparison of their value based on current book to price, cash flow to price, earnings to price, average dividend yield, return on equity and cash flow return.

Markets included in this portfolio are:

• Norway
• Australia
• Hong Kong
• Japan
• Singapore
• United Kingdom
• Taiwan
• South Korea
• China

These markets have been chosen based on four pillars of valuation.

• Absolute Valuation
• Relative Valuation
• Current versus Historic Valuation
• Current Relative versus Relative Historic Valuation

Learn how to use Country ETFs to easily construct a diversified, risk-controlled, equally weighted representative country portfolios in all of these good value countries.

To achieve this goal my portfolio consists of Country Index ETFs that track an index of shares in a specific country.  These country ETFs provide diversification into a basket of equities in the good value countries.  The expense ratios for most ETFs are lower than those of the average mutual fund as well so such ETFs provide diversification and cost efficiency.

This is an easy, simple and effective approach to zeroing in on value because little management and guesswork is required.  You are investing in a diversified portfolio of good value indices.  A BUY rating for an index does NOT imply that any stock in that country is an attractive investment, so you do not have to pick and choose shares.  You can invest in the index which is like investing in all the shares in the index.  All you have to do is invest in an ETF that in turn invests passively in all the shares of the index.

Learn the results of a $80,000 share purchase cost test that found the least expensive way to invest in good value.  The keys to this portfolio are good value, low cost, minimal fuss and bother.  Plus a great savings of time.  Trading is minimal, usually not more than one or two shares are bought or sold in a year.  I wanted to find the very least expensive way to create and hold this portfolio so I performed a test.

The Test for Low Cost Trading

Research put every part of this portfolio in place, except knowing the best, easiest and least expensive way to buy.  A search for an optimal way to buy and hold boiled down to two methods.  One tactic to test was to use a unique online broker that appeared to offer the lowest cost deal.  The other approach was to use a community bank in Smalltown USA.  The small town bank that I use looks after my 401K trust account and their service is first class.  The benefit of small banks is that they still treat us as a human beings (instead of a number) and when we need, it’s easy to go right to the top to answer a question or get a problem resolved.  There are no call centers and the bank and the person looking after my account is just around the corner.

I created a test to see which offered the least expensive service.

Working with my banker in Smalltown USA,  I created two accounts, one at the online broker and the other at the bank. I placed $40,000 in each.

I set up the order for the country ETFs online, while my trust manager set up orders for the identical amounts of the same shares in his system.  Then we got on the phone, coordinated our timing and on a count of three each pushed the button “BUY”.

The results of this test  show how you can gain on any purchase of country ETFs.

In this special offer, you can get this online seminar FREE when you subscribe to our Personal investing Course.

Save $468.90 If You Act Now

Subscribe to the first year of The Personal investing Course (Pi).  The annual fee is $299, but to introduce you to this online, course that is based on real time investing, I am knocking $102 off the subscription.  Plus you receive FREE the $29.95 report “Three Currency Patterns for 50% Profits or More”, the $39.95 report “Silver Dip 2017” and our latest $297 online seminar for a total savings of $468.90.

ecuador-seminar

Triple Guarantee

Enroll in Pi.  Get the basic training, the 46 market value report, access to all the updates of the past two years, the two reports and the Value Investing Seminar right away. 

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

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

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

#3:  You can keep the two reports and Value Investing Seminar as my thanks for trying.

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

Subscribe to Pi now, get the 130 page basic training, the 120 page 46 market value analysis, access to over 100 previous Pifolio updates, the “Silver Dip 2017” and “Three Currency Patterns For 50% Profits or More” reports, and value investment seminar, plus begin receiving regular Pifolio updates throughout the year.

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

Your subscription will be charged $299 a year from now, but you can cancel at any time.

Gary

 

Gary

(1) Dollar chart from pricedingold.com

(2) Grandfather Economic Report

 

 

Ecuador Farc Comments


Yesterday’s message Ecuador FARC Thoughts inspired many comments I would like to share.

Plus after the comments, I hope… is a provoking thought on why…

Ecuador-farc

bears get rich… sometimes. Bulls get rich sometimes. Pigs always get slaughtered.

First, the comments on Ecuador FARC & drugs.

Ecuador FARC & Drugs Comment #1: Hi Gary and Merri,  Of course Ecuador like most other countries had a ‘drug problem’ simply because drugs are in evidence all over the world. I found less evidence of drug-related stuff in Ecuador than here in inner-city Sydney where drug sales have been prevalent for the the last 30 to 40 years – mixed with a lot of alcoholism at the same time so this makes for a hight crime rate plus the odd racism riot from time to time which in turn makes for interesting anthropological studies as well. The Kooris here “explode” from time to time – thus venting their frustrations – but to their credit – don’t  import/export hard drugs to exploit countries like the US. Most Kooris are soft drug users (eg Marijuana etc) and only a few are hard core users/dealers to which quite a few blind eyes are being turned by some in the know. Sad really – many suffer from the activities of a few…  Ecuador is lot better than other countries – especially first world countries……

Ecuador FARC & Drugs Comment #2: Gary,  Relentless good news, when discussing any area in the world, is misleading and dishonest to those trying to learn about an area in which they may wish to visit or invest and eventually live.  Too many promoters would have us believe it’s just a rose garden paradise, but as so many U.S. Country singers have covered, “Along with the sunshine, there’s gotta be a little rain sometime”.  Thank you for respecting the need to “keep it balanced”.

I did want to offer a comment to a statement in your recent article regarding “Ecuador drugs, military and FARC”.  Your statement was: “Yet my opinion is that this problem with the Farc is minor and strictly limited to remote parts of the Ecuador Colombia Amazon border.”  (I underlined the word “strictly” myself for emphasis).

I was in Ecuador in Jan. 09 and focused most of my visit on the central coast (an amazing place for many reasons and I will be back).  I based myself in Bahia and explored north and south from there.  While sitting out front of my accommodation one perfect evening, enjoying a cervesa with a couple of expats, I was told a story about a recent incident in San Vicente, just a few minutes ferry ride north of Bahia.  It seems that two FARC rebels made it this far south and attempted to do the business they do.  San Vicente residents identified these two for who they were and, publicly, beat them to death.  This is a violent story and I couldn’t imagine standing there and watching it happen; however, it does seem to say a lot about the attitudes in Ecuador (in San Vicente anyway) toward FARC.  They were hoping this would send a clear message to FARC that their business is not welcome there.

As we all know, it seems every rule has its exceptions.  I thought this was a good opportunity to remind your readers to expect the unexpected and remain aware of your surroundings (without trembling in paranoia) wherever we go in life.

Ecuador FARC & Drugs Comment #3:

Hi Gary, Congratulations! I couldn’t imagine a more thorough debunking of the article. You really pummeled it. Of course there are always those who will keep their noses down in the dirt believing to have sniffed out a conspiracy. But there is nothing you can do about them. I happen to own pigs as you know and though I hear they are quite intelligent, mine, I’m afraid, also just keep rooting around in the garbage, never convinced that somewhere underneath  a conspiracy is lurking. The analogy is purely intentional.

Ecuador FARC & Drugs Comment #4:

Hello Gary, You can go to www.snopes.com and locate these rumors or request they be checked out. Good site for debunking stuff like this.

This is a good suggestion I use www.snopes.com a lot.  Another site for quick accuracy checks similar to www.snopes.com is www.factcheck.org

Ecuador FARC & Drugs Comment #5:

Hi – I KNEW you would be the guy to cover ALL the bases!  Thx for a great report!  Hope all is well and NC is getting thru this crazy weather OK!

Ecuador FARC & Drugs Comment #6:

Gary, Here’s my 2 cents worth to the discussion about Ecuador and the FARC:

1)  When we were there in 2007, we planned to visit Tulcan to see a famous topiary garden, but were stopped north of Ibarra by the federal police, who strongly suggested we not go because of the danger of guerrilla activity. There had also been a recent kidnapping of foreigners in the area.

2)  My workers, who come from Suzcal, not from anywhere near the border, insist that narcotraficantes are either taking over Ecuadorian farms near the border for coca production or chasing out the owners off them if they resist.  This, of course, is hearsay.

3)  A more interesting (at least to me) issue than the FARC is the rise of criminal armies who are replacing the 37 right-wing militias that Uribe managed to get rid of. Apart from the uncertainty of running for a third term, he has his hands full with the dilemma of either moving to control them (and having to admit his demobilization program has failed despite $5 billion of US anti-narcotic aid) and the hold that the US Congress has put on signing the treaty granting Columbia favored trading status until Uribe demonstrates a successful policy against drug gangs both right and left.

You may remember that the original purpose of the right-wing militias was to protect landowner interests against both peasants and the FARC. Over time, they morphed into drug trafficing and competition with the FARC.

My personal belief is that Uribe is unable to move against the criminal armies because too many members of his government, prominent businesses, and leading families are involved. If so, then Colombia is on its way to becoming Mexico 2.0. There’s so much money to be made that it becomes impossible to trust either the police, the army, the politicians or anyone else.

If you have access to today’s NYT, there an article on the above in the first section.

Personally, I doubt Correa is involved with the FARC: They have little legitimacy left as a populist, left-wing movement. I don’t doubt there are members in his government that support either or both sets of drug traffickers in Colombia. But as for specific fears about the FARC, I would be more worried about groups with deep connections in the political establishment.

Certainly Correa’s politics have led him to some dumb things like his deals with China. (You may remember the 2007 scandal where a chief minister was selling work visas and residency permits to Chinese employees of a company with a major contract in Ecuador). If he was awake, he would know that all over the world, China promises jobs, training, technology and support for local economies, then brings its own staff and stuff. If he imagines that China will be a better environmental steward in the Amazonian oil fields than Phillips and Texaco were, he’s in for a rude awakening.

I agree with this reader that the border areas of Ecuador should be avoided. We recommend that delegates do not visit Tulcan north of Ibarra nor Esmeraldas.

Ecuador FARC & Drugs Comment #7:

I follow your site with interest, having my own love affair with Cuenca while still living retired in New Mexico. Thought you should see this from today’s Los Angeles Times…gives quite a lot of detail on recent drug-related issues in Ecuador.

http://www.latimes.com/news/nationworld/world/la-fg-ecuador-drugs4-2010feb04,0,3107970.story

Perhaps someday we will cross paths down there.

Best regards

That article in the LA Times is worth a read and begins:

Cocaine trafficking keeps Ecuador anti-drug authorities busy

Seizures set a record last year for the country, which is growing in importance as a hub for shipments to the U.S. and Europe.

An Ecuadorean police officer guards containers of cocaine-laced molasses at a news conference in Guayaquil last May.   Reporting from Guayaquil, Ecuador – The beat cop quickly discovered why the three men at the entrance to the storage yard had bolted as he pulled up in his patrol car.

Inside the walled enclosure he saw 3 tons of cocaine and a large-scale processing lab, evidence of Ecuador’s growing importance as a trafficking hub for illegal drugs.

The mid-December raid in this port city’s Bastion Popular industrial zone capped a record year for Ecuador’s counter-narcotics police. They seized 63 tons of cocaine, twice as much as in 2008, and destroyed seven drug-processing laboratories, up from two.

Thank you readers for your comments.

Now, here… I hope… is a provoking thought about pigs.

The comments above about the intelligence of pigs reminded me of the aphorism  Bears get rich… some times. Bulls get rich sometimes. Pigs always get slaughtered.

I began thinking about La Selva Jungle Lodge which has been owned and operated by Eric and Maggie Schwartz for 25 years. Imagine what vision it took that long ago to invest heavily in a lodge deep in the Amazon… hours from anything.   Ecuador was very primitive 25 years ago compared to now.

Yet despite plenty of turmoil… including a war with Peru in the Amazon… they have built an incredible business. La Selva Lodge is an inspirational place and…

Ecuador-farc

beautiful.

Ecuador-farc

This thought conjured up two ideas… the first about the pig farm at La Selva Lodge.

Eric and Maggie have not only stuck with this project through thick and thin, and profited… they have come up with some aware winning ideas… like their pig farm.

Here is an excerpt from the La Selva Lodge website.

The Pig Farm – La Selva Jungle Lodge

Our indigenous neighbors from the community of Pilche raise no animals which is very good for La Selva for it means no forest needs to be cut for grazing or to plant crops for fodder.

Occasionally they have taken to hunting over the years as it is both instinctual and satisfies a need for protein. We wanted to come up with a viable solution to this pressure, however slight on our ecosystem and so devised the following proposal that you will find below as it was presented and won the 2007 Ecotourism Award.

Goal

To use food that would be wasted ; table scraps left uneaten by the tourists, parings not used in cooking, fruits and vegetables past their prime for usage as food to guests as fodder for a pig farm.

The pigs when grown from this ample diet are given to our indigenous neighbors.

Pigs

Objectives

1. In return for the pigs (protein) we eliminate hunting in the area since their dietary needs for protein have been satisfied and the agreement under which the pigs are given to the natives has been settled by contract.

2. Fertilizer is created from the pigs from which a tropical fruit will eventually be grown in an area of land on our property that was cleared many years ago and serves no use and is not big enough for a reforestation effort.

Project Description 

For over 20 years La Selva Jungle Lodge has made agreements with incentives to our indigenous neighbors to dissuade them from hunting and also from having domesticated animals larger than chickens (so as not to destroy the forest for grazing land.)  But as their population has grown and their taste for wild meat has not abated- while we have had much success in this area- the problem is far from solved.

Tourists come to eat three times a day, as does a staff of about thirty. This provides enough food waste per day to fill three 55 gallon drums which all these years has been composted with the byproduct only occasionally used; especially in the butterfly farm. This amount of food waste will feed a large amount of pigs, bought in ascending size and to be grown and gifted to our indigenous neighbors at regular intervals. We built a pig farm, use tourist food scraps for pig feed, gift the pigs to the natives and by so doing save more rainforest animals and plants.

The Pig Farm is a simple well-drained cement floor located near the same spot as the former compost heap with ample space, an attendant, and a water hose as needed. It is covered with a kind of rebar cage to ward off jaguars.

What a great idea and this exemplifies the fact that international investments can be enhanced by value… because pigs want perfect.

Eric and Maggie instead recognized problems… took risks… worked hard and created a paradise within a paradise and continue to keep the area a paradise.

You can reach Eric Schwartz with questions about La Selva Lodge at lscentral1@cs.com

Click here for La Selva Lodge’s website

Perfect rarely exists and the reality is that fear creates value.

Many readers write to me with their fears and seem to be looking for a perfect, easy to attain, low cost… totally safe… place where there is unlimited opportunity and where they will not have a worry in the world.

I have found and lived in some great places… Gresham Oregon, Petaluma, California, Hong Kong, London, Nailsworth Gloucestershire, Geneva Switzerland, Naples Florida, Cabarete Dominican Republic, Douglas Isle of Man, Lansing and Murphy North Carolina, Quito, Latacunga, Calacali, San Clemente, and Cotacachi Ecuador, Mt. Dora Florida.

These are all wonderful places…  but I have not yet found Shangri-La.

Sometime back, a sharp reader noted that Merri and I stepped up our international investments in Ecuador real estate investing exactly at the same time the new left sounding President Correa was elected.

He missed the fact that I had stepped up real estate tours when the country crashed in 2000 as well.

This reader sent me an article about Venezuela.

Here are excerpts from this article about international investments entitled “Rich Venezuelans heading to Florida.”

“They call it ‘Plan B’. As Venezuelan President Hugo Chavez further tightens control of the South American country’s economy, wealthy Venezuelans who once thought they could live with his socialist edicts are turning to their backup plan — flight to the United States, particularly Florida.

“First the people who come are the businessmen in the highest circles, then the losing politicians, then the military and then the professionals,” said Miami-based immigration attorney Oscar Levin. “You’re beginning to see the (Venezuelan) professionals.”

“This latest and largest potential group of emigrants say they fear the effect Chavez’s socialist policies will have on the economy and on proposed educational reforms that could mirror the ideologically imbued education of Chavez ally and mentor, Cuba’s Fidel Castro.

I share this story for several reasons. First, I want anyone considering international investments or residence in Ecuador to understand what could happen if things go wrong.

Second, I want the same readers who are interested in international investments to note what is happening to Chavez and the Venezuelan currency.

Third, I want readers making international investments to understand the value of fear.

To understand fear generated value better… remember that my career started selling mutual funds and living in places where terror was taken for granted. I quickly learned that fear creates value. This simple fact should seem obvious, but is easy to forget. Arriving in Hong Kong for my first time in 1968 there were communist riots and bombs being set off in the streets. The first day I arrived a motorcycle policeman had his leg blown off by a terrorist bomb. The Chinese army was massed on the border and there were continual talks about an invasion. Hong Kong businessmen were fleeing. Real estate was literally being given away.

Life went on. We all figured out the fastest route to the British and American war ships in the harbor for a quick exit in case the Chinese decided to invade.  We watched out for boxes in the street that could be bombs. Then we just got busy with life. I rented a huge apartment on Shouson Hill Road overlooking the ocean and the village of Aberdeen. The owner wanted to sell this block of apartments but I had no money or experience then. He was so desperate that he made a deal. Instead of paying him $250 a month rent I invested $250 into mutual funds for him.

So how much value did that fear create? I decided to look see and checked out equivalent apartments for rent on the same Shouson Hill Road in Hong Kong now. Here is what I found that apartments which ran $250 a month to rent then cost now:  The ad said Features:

Sea views
Central Air-Conditioning
Size: 3000 – 3600 square feet
Bedrooms: 4
Rental Costs (approx. per month): HK$ 130,000 – 140,000 (US $16,667 – $17,949)

So rent jumped from $250 to $17,949 a month. Not bad if you are the owner. I was too young then to understand the value of fear and missed that opportunity.  Now I know better.

Not all the profits in Hong Kong were caused by fear.  Much of it was.

Those who made heavy investments in Hong Kong during that time of fear made huge fortunes. Had I understood the value of fear in the late 60s and early 70s, I could have made tens, even hundreds of millions of extra dollars.

In Hong Kong’s case there was fear that politics would go wrong. They did not and this pushed the value of HK international investments through the roof! Yet even when politics do go wrong investors can do well.

Take international investments in Chile as an example. This country went through one of the worst imaginable political scenarios beginning in 1973 when Pinochet led a coup d’état deposing democracy and using military power declared himself president and remained in power 17 years. The global press did not write as much negative news then because this dictatorship was against communism and this had the support of the United States. Hundreds, maybe thousands of dissidents were killed. Even more tortured. Yet those who invested there made fortunes.

In the early 80s, a really nice house in Santiago’s fashionable suburbs was worth about $25,000. Now the same house will be worth well over $1,000,000. Real estate throughout Chile has appreciated enormously over these years.

No one likes uncertainty. But there is uncertainty everywhere. As populations grow, as the rich and the poor become more divided, it becomes impossible to have real control anywhere.

If we are faced with change everywhere, there is a logic to investing in places where there is enough fear to at least create a nice risk premium.

Ecuador offers special value in my opinion. There is fear internally, but as an outsider I see this as a nation of sweet, pacific people. This country was formed by a combining of many cultures and has always been adept at forming a consensus. Democracy is strong. The military has refused on numerous occasions to become involved in political affairs and the population has shown itself to be adverse to violence.

Chances here are that whatever political change takes place, it will be calm. If I am wrong, that’s why we get extra profit potential to take the risk.

Here are a few of the properties we’ll see in our February and March 2010 Imbabura real estate tour.

Studio condo.  Huge balcony. Some of the best views in town.  $49,000.
Ecuador-farc
Yellow townhouse. Recently completed.  Just off leather street behind San Francisco park.  3 bedrooms, 2 1/2 baths, great rooftop terrace, all very
good materials and finishing, $55,000.
Ecuador-farc
Three bedroom condo. 2.5 bathrooms…hardwood cabinets and closets… furnished. $59,000.

San Miguel house.  3 bedrooms, 2 full baths, office, inside and outside fireplace, fountain, flowers.  Great condition.  Owner has the lot next door
and is building another place.  $104,000.

Ecuador-farc

We hope to serve you on our 2010 tours.

Gary

Join Merri and me plus nine other speakers and contacts this February  at a seminar that shares ways to invest, do business and live in Ecuador or globally February 11-14  at Quantum Wealth -International Investing & Business Made EZ, Mt. Dora, Fl.

You can also come on with us to Ecuador.

February 15-16 Travel to Quito and tour Quito

February 17     Travel Quito to Manta

February 18-19  Manta & Mid Coast Real Estate Tour

February 20 Travel Manta to Cotacachi

February 21-22 North Andes, Imbabura & Cotacachi Real Estate Tour

February 23-24  Quito & Mindo Real Estate Tour

February 25 Travel Quito Cuenca

February 26-27  Cuenca Real Estate Tour

Or join us in March 2010

March 11-14     Super Thinking + Spanish Course, Mt. Dora, Fl.

March 15    Travel to Quito

March 16 Travel Quito Cotacachi

March 17-18  North Andes, Imbabura & Cotacachi Real Estate Tour

March 19-20    Cotacachi Shamanic Tour

March 21  Travel Cotacachi to Manta

March 22-23   Manta & Mid Coast Real Estate Tour

March 24 Travel Manta to Cuenca

March 25-26 Cuenca Real Estate Tour

March 27  Travel Cuenca to Salinas

Mar. 28-29   Salinas & South Coast Real Estate Tour

The Ecuador airfare war makes it cheaper to get to Ecuador than ever before… and there is still time to enjoy great Ecuador tour savings.

You enjoy discounts by attending multiple seminars and tours. Here are our multi tour adventure discounts.

Two Pack… 2 seminar courses & tours $998 Couple  $1,349 Save $149 on couple

Three Pack… 3 seminar courses & tours   $1399 Couple  $1,899 Save $98 single or $348 on a couple or more

Four Pack… 4 seminar courses & tours   $1,699 Couple $2,299 Save $98 single or $697 on a couple or more

Five Pack… 5 seminar courses & tours  $1,999 Couple $2,699 Save $496 single or $1,046 on a couple or more

Six Pack… 6 seminars courses & tours  $2,199 Couple $3,099 Save $795 single or $1,395 on a couple or more

Even Better.  Greater Savings. Our 2010 International Club membership allows you and a guest to attend as many of the 51 courses and tours we’ll sponsor and conduct in 2010  (fees would be $40,947 for all these courses individually) is only $3,500.

If you join the International Club, the entrance fee for 2010 is $3,500.  Your attendance fees at all courses will be waived. You and a guest of you choice can attend courses worth $40,947.You can calculate the savings as our schedule of all 2010 courses here.
International Club 2010 Membership $3,500 Enroll here

International Club Three Monthly Payments of $1,190

Our Spring 2010 schedule starts:

Apr. 12-15   Ecuador Export Tour ($499 or couple $749)
Apr. 17-18   Imbabura Real Estate Tour ($499 or couple $749)
Apr. 20-21  Coastal Mid Coast Real Estate Tour ($499 or couple $749)
Apr. 23-24  Quito & Mindo Real Estate Tour ($499 or couple $749)
Apr. 26-27  Cuenca Real Estate Tour ($499 or couple $749)

The multi tour discounts remain effective for the April tours.


Ecuador Beach Acreage


Here is Ecuador beach acreage for sale north of Bahia, Ecuador. This area may be Ecuador’s best secret.

Readers who have been reading our site for some time know that I like Manta Real Estate in Ecuador.

But areas north of Bahia may have the greatest long term potential.

This picture at tripadvisor.com shows one reason why. Here is Bahia, Ecuador.

bahia-Ecuador

The full name of the city is Bahia de Caraquez. This is a town that makes living on this part of Ecuador’s coast a great place to be.

Bahía is a Pacific coastal city located on a peninsula about an hour and 15 minutes north of Manta and is bordered by the Chone River. This river creates the opportunity.  The estuary has always stopped the traffic flow.

Here is a shot taken on one of our coastal real etsate tours over the Chone Estuary.

Bahia-Ecuador-Chone-River

Over the last decade Bahia has become one of the country’s most attractive resort areas due to its beauty, cleanliness and access to Manta and Quito (five hours by car once the roads are completed) and Guayaquil (four hours by car) but the estuary makes it hard to get north of Bahia from Manta.

There are also two very important reasons why this area north of Bahia real estate may now rise.

First, a new highway is being built between Quito and the coast. This construction is taking much longer than it should and costing way more than budget..but eventually it will be complete and one more concrete freeway will be able to whisk from Quito to Bahia.

Second, some day there will be a bridge across the Chone. Bahia sits on an isthmus between the Pacific Ocean and the huge estuary of the Chone River. If you are traveling from the south up the coast in a northwards direction, you are stopped at the Chone. The drive onwards moves down the Chone for a couple of hours just to get back to the coast north of the estuary north. Here is a group of our real estate tour delegates looking across the Chone.

Bahia-Ecuador-Chone-River-Sailing-

This map shows the area… Manta in the south… Perdernales on the beach and Quito to the east.

Ecuador-beach-real-estate-for-sale

The only way to cross the Chone at this time is via ferry. There are usually two car ferries. This is the Pacific Coast Highway running from Columbia all the way down to Peru and Chile so cars, buses and trucks use them.

Big trucks are loaded, first followed by the cars. These ferries also take foot passengers and are free.

Bahia-Ecuador-Ferry

There are also passenger ferries that continually go back and forth costing about 30 cents for the trip.

However, at times it can take up to two hours to get on a car ferry.

So a bridge across the Chone would be invaluable and is in the process.

President Correa came in 2008 and promised to get the bridge built.

Bahia-Ecuaor-President

Here is President Correa in Bahia.

The bridge construction is quite advanced as you can see below.

Ecuador-beach-real-estate-for-sale

Below is a paid advertisement of 16.7 acres of land for sale in this zone of opportunity on Ecuador’s Pacific between Bahia and Perdernales.

Ecuador Beach Real Estate for Sale… four hours west of Quito… 28 miles south of Perdernales… 20 miles south of Jama in the village of Tasate.

A new highway under construction will reduce driving time to Quito by an hour.

There are no services at the moment. Electricity and telephone services are  at the the front of the property and are easily available. A deep well will be needed for water.

This 16.7 acres sits on…

Ecuador-beach-real-estate-for-sale

the main highway between the cities of Pedernales and Jama.  It is very close to the village of Tasaste. The main highway runs along the Coast, is asphalted and in good driving conditions. This highway is the south – west border of the property.

The property is well fenced along the highway and has a gated entrance, leading to…

Ecuador-beach-real-estate-for-sale

interior roads that…

Ecuador-beach-real-estate-for-sale

reach…

Ecuador-beach-real-estate-for-sale

many areas of…

Ecuador-beach-real-estate-for-sale

the land…

Ecuador-beach-real-estate-for-sale

and…

Ecuador-beach-real-estate-for-sale

the beach.

Ecuador-beach-real-estate-for-sale

with views…

Ecuador-beach-real-estate-for-sale

and plenty of sand.

The previous owners had planned a tourist development and provided me with a SWOT plan (Strengths, Weaknesses, Opportunity and Threats).

Here are excerpts from the SWOT study:  The goal of this project is to provide tourism and residential services to the cities of Quito and Santo Domingo de los Colorados. The ways to access from Quito are: Aloag – Santo Domingo, Santo Domingo – El Carmen and El Carmen – Pedernales. The driving time is approximately 4 hours.

We should consider very important that the Council provincial of Pichincha and Manabi signed an agreement to finish the highway from La Concordia to Puerto Nuevo. This new highway will reduce at least one hour driving from Quito to Pedernales.

All these highways are asphalted and in good driving conditions. With this, it is demonstrated that the Pedernales beaches are the closest ones to the city of Quito because they are on the latitude 0.0.

There are few hotels within 2 miles and the highway is being widened between Pedernales and Jama.

STRENGTHS

Strategic location of the land (close to the sea)
The project is located inside of the tourist zone.
Easy access and highways in good driving condition.
Good public transportation system with regular service.
Landscape of dry forest and extraordinary view to the sea.
The projected area per unit and their costs are totally accessible compared with other similar programs in other provinces.
A total wearing down of the emerald tourist zone.
The distance from Quito to the project is 3 to 4 hours.

OPPORTUNITIES

The zone is projected for tourist and residential uses, according to strategic  Municipal plans.
The project is close to the cities of Jama and Pedernales to have access to their goods and services.
The project will be transformed in a development pole, using manual labour from the small town of Tasaste.

WEAKNESSES

Acoustic contamination because of the highway Jama – Pedernales.

THREATS

Constant growth of the real estate supply
Presence of establishments of temporary lodging (hotels)

DESCRIPTION OF PROJECT

The topography of the land determines 2 elevations with a regular slope, the central part of the lot is but flat and is crossed by a matting.

By the morphology the project has been divided in 2:  The North part is destined for the house and 40 units will be implanted. In the South elevation the hotel zone will be located where they will be located the restaurant, 12 single rooms, 10 cabins, an area of reception, a museum, a small commercial center and all the areas of viewpoint to take advantage of the natural enchantment.

The estate is crossed by a ballast way that gives access to the beach and to the hotel zone.

In the green areas of the project we propose sport fields, gardens, 2 swimming pools: one for the residential zone and another one for the hotel zone, all this framed within the norms of respect to the ecology, remembering that the impact to the nature.

The entire 16.7 acres is offered as is.

I can send interested parties a 97 page Power Point presentation showing more of the property and the entire SWOT.

The asking price is US$285,000.

Please send requests to me Amrit Nahata at amritnahata@hotmail.com

See more details on the property here.

End of paid advertisement. We have no interest in this property or the sale of this property. All the data in the paid ad above has been provided by the seller and anyone interested should take all due diligence.

Gary

Join our real estate tours in January.

Jan.   8-11     Ecuador Export Tour
Jan. 13-14     Imbabura Real Estate Tour
Jan. 15-18     Coastal Real Estate Tour
Jan. 19-20    Quito-Mindo Real Estate Tour
Jan. 21-23    Cuenca Real Estate Tour

If you plan to join us at six or more seminars and tours in Ecuador, Florida or  North Carolina in 2010 you can save as an International Club member

See details about each of our seminars and tours below… then see our December special that allows you to attend as many of these courses you like at a huge savings.

For International Investing and Business.

For Super Thinking + Spanish

For Ecuador Shamanic Tour

For Ecuador Export

For North Andes, Imbabura & Cotacachi

For Manta & Mid Coast

For Quito & Mindo

For Salinas & South Coast

For Cuenca

You gain discounts by attending multiple seminars and tours.

Here are our multi tour adventure discounts.

Two Pack… 2 seminar courses & tours $998 Couple  $1,349 Save $149 on couple

Three Pack… 3 seminar courses & tours   $1399 Couple  $1,899 Save $98 single or $348 on a couple or more

Four Pack… 4 seminar courses & tours   $1,699 Couple $2,299 Save $98 single or $697 on a couple or more

Five Pack… 5 seminar courses & tours  $1,999 Couple $2,699 Save $496 single or $1,046 on a couple or more

Six Pack… 6 seminars courses & tours  $2,199 Couple $3,099 Save $795 single or $1,395 on a couple or more

But our 2009 International Club membership which allows you and a guest to attend as many of the 56 courses and tours we’ll sponsor and conduct in 2010  (fees would be $40,947 for all these courses individually) is only $2,999.

The International club fee rises to $3,500 in January 2010. Enroll in the International Club now at the original fee of $2,999. Save $501.

International Club 2010

Attend our 56 investment, business, Spanish, real estate and export, courses and tours in 2010 with one small enrollment fee.

International Club 2010 Membership Enroll here

Here are the 56 courses and tours you can attend free. Plus there is even one more savings you will see below.

Jan.   8-11     Ecuador Export Tour
Jan. 13-14     Imbabura Real Estate Tour
Jan. 15-18     Coastal Real Estate Tour
Jan. 19-20    Quito-Mindo Real Estate Tour
Jan. 21-23    Cuenca Real Estate Tour

Join us in February or March.

Feb. 11-14   Quantum Wealth Florida -International Investing & Internet Business, Mt. Dora, Fl.

Feb. 15-16   Travel to and visit Quito
Feb  17         Travel to Manta
Feb. 18-19   Coastal Real Estate Tour
Feb. 20        Travel to Cotacachi
Feb. 21-22   Imbabura Real Estate Tour
Feb. 23-24  Quito-Mindo Real Estate Tour
Feb. 26-27  Cuenca Real Estate Tour

Mar. 11-14     Super Thinking + Spanish Course, Mt. Dora, Fl.
Mar. 15-16    Travel to Quito and Andes
Mar. 17-18     Imbabura Real Estate Tour
Mar. 19-20    Cotacachi Shamanic tour
Mar. 22-23    Coastal Real Estate Tour
Mar. 25-26    Cuenca Real Estate Tour
Mar. 28-29   South Coast Real Estate Tour

Apr. 12-15   Ecuador Export Tour ($499 or couple $749)
Apr. 17-18   Imbabura Real Estate Tour ($499 or couple $749)
Apr. 20-21  Coastal Real Estate Tour ($499 or couple $749)
Apr. 23-24  Quito-Mindo Real Estate Tour ($499 or couple $749)
Apr. 26-27  Cuenca Real Estate Tour ($499 or couple $749)

May  13-14     Ecuador Shamanic Minga  ($499 or couple $749)
May  16-17    Imbabura Real Estate Tour  ($499 or couple $749)
May  19-20    Coastal Real Estate Tour ($499 or couple $749)
May  22-23    Quito-Mindo Real Estate Tour  ($499 or couple $749)
May  25-26    Cuenca Real Estate Tour  ($499 or couple $749)
May  28-29    South Coast real Estate Tour ($499 or couple $749)

June 24         Quantum Wealth North Carolina
June 25-27    International Investing and Business North Carolina  ( $749 or couple $999)
June 28-29   Travel to Ecuador and Andes
June 30-Jy 1 Imbabura Real Estate Tour  ($499 or couple $749)
July 3-4          Coastal Real Estate Tour   ($499 or couple $749)
July 6-7          Quito-Mindo Real Estate Tour    ($499 or couple $749)
July 9-10        Cuenca Real Estate Tour   ($499 or couple $749)

Sept.   3-6      Ecuador Export Tour  ($499 or couple $749)
Sept.   8-9      Imbabura Real Estate Tour  ($499 or couple $749)
Sept. 11-12     Coastal Real Estate Tour   ($499 or couple $749)
Sept. 14-15     Cuenca Real Estate Tour    ($499 or couple $749)
Sept. 17-18     Ecuador Shamanic Minga  ($499 or couple $749)
Sept 20-21      South Coast Real Estate tour ($499 or couple $749)

Oct.    7          Quantum Wealth North Carolina
Oct.   8-10     International Investing & Business North Carolina ($749 or couple $999)
Oct.   11-12    Travel to Quito and Andes
Oct.  13-14     Imbabura Real Estate Tour ($499 or couple $749)
Oct.  16-17     Coastal Real Estate Tour ($499 or couple $749)
Oct.  19-20    Quito-Mindo Real Estate Tour ($499 or couple $749)
Oct. 22-23     Cuenca Real Estate Tour ($499 or couple $749)

Nov.    4-7        Super Thinking + Spanish Course Florida ($749 or couple $999)
Nov.    8-9       Travel to Quito and Andes
Nov. 10-11       Imbabura Real Estate Tour ($499 or couple $749)
Nov. 13-14      Coastal Real Estate Tour ($499 or couple $749)
Nov. 16-17      Quito-Mindo Real Estate  ($499 or couple $749)
Nov. 19-20     Cuenca Real Estate Tour ($499 or couple $749)
Nov  22-23      South Coast Real Estate Tour (($499 or couple $749)

Dec.   3-5       Ecuador Shamanic Mingo  ($499 or couple $749)
Dec.   7-8       Imbabura Real Estate Tour ($499 or couple $749)
Dec.  10-11    Coastal Real Estate Tour ($499 or couple $749)
Dec. 13-14     Quito-Mindo Real Estate Tour ($499 or couple $749)
Dec. 16-17      Cuenca Real Estate Tour ($499 or couple $749)

If you join the International Club, the entrance fee for 2010 is $2,999 (until January 2010).  Your attendance fees at all courses will be waived. You and your guest can attend courses worth $40,947.

You can calculate the savings as our schedule of all 2010 courses is shown below.

Arrival dates are always one or two days earlier. Please double check with us before booking flights.

I invite you to be a member of the International Club which allows you and your guest of your choice to attend all of these courses which are valued at $40,947!

International Club 2010 Membership Enroll here

You may well wonder why I would make such an offer and ask why the cost is so low? Let me answer this question frankly and from the heart.

First, it helps us do a better job for you. We feel greatly enriched when we can really help our clients improve their lives. We have learned through years of experience the best way to do this is to meet with you regularly. We can best help you learn how to improve your health and wealth through continual expansion of knowledge.

Second, we gain enormous fulfillment from the many friendships we form through the years. Our friends have enriched our lives tremendously. Let me explain this in more detail.

As a member, you will be part of our international family that meets intensively over the next year to examine ways we can make our lives better. Our goal is beyond just having money. Our goal is to have quantum wealth… good health… wealth and fulfillment through service.

Though I give all course delegates my very best, I cannot help but to do a better job for those who come again and again. As we meet often; your particular wants, needs and desires become clear, and it is easier for me to point you in the right direction.

Another phenomenon is that repeat delegates help each other! They get to know one another, help each other learn, share their insights, make contacts and gain more wealth.

Out associates in Ecuador, are experienced business people who live or work and conduct our real estate and export courses.  They can also act as your local backup for the business.

Lifestyle for Two. There is more! I have learned at my courses that many repeat delegates were couples.

We want couples! As a member of the program, you are entitled to bring another person to every single course or tour. The cost for that extra person will be ZERO!  You can bring whomever you wish. Bring your spouse, a friend, son or daughter, partner, accountant, adviser. You can bring the same person each time or a different person, whomever you choose to accompany you. (Accommodations and air fares relating to the courses are not included for members, delegates or their guests.)

Won’t you join us in this exciting club and share Merri’s and my lifestyle for the next year? We look forward to seeing you at as many courses as possible and sharing this wonderful world of abundance and well being with you!

Gary

International Club 2010 Membership  Enroll here


Investing in Chaos


Many recent messages have looked at living, business and investing in chaos during times of turmoil and change.

investing-in-chaos

Ecuador at times may seem chaotic.

Chaos is caused by transition from one wave of productive technology to another.

Investors and businesses who understand this have an enormous advantage because they know to look for the next wave.

In a moment, we’ll look at the potential for chaos in Ecuador.

First, let’s look at some positive chaos that could ruin some basic utilities but also create millions (maybe billions) for some businesses and investors.

The industrial revolution has been a time of continual chaos.  There was a time of turmoil when mankind shifted from steam technology to the internal combustion engine. Investors who had been big in railroads (but were smart) shifted to investing in automobiles and trucking and bus lines.

Then chaos came again when the jet engine made the airplane a more effective form of transportation than long distance.  Bus travel and smart investors shifted from Greyhound into airline shares.

In the information era; the PC, Internet (and Microsoft) became the major carrier of mankind and investors who saw this potential once again jumped ahead of the pack.

Where do we go next?

One new wave of technology may come in a product we all take for granted…. creating what I would call the independence era. Let’s just look at the break through.

A forward looking reader sent me the Utah Daily Herald article “New battery could change world, one house at a time” by Randy Wright.

Here is an excerpt:  On a modest building on the west side of Salt Lake City, a team of specialists in advanced materials and electrochemistry has produced what could be the single most important breakthrough for clean, alternative energy since Socrates first noted solar heating 2,400 years ago.  — a new generation of deep-storage battery that’s small enough, and safe enough, to sit in your basement and power your home.

It promises to nudge the world to a paradigm shift as big as the switch from centralized mainframe computers in the 1980s to personal laptops. But this time the mainframe is America’s antiquated electrical grid; and the switch is to personal power stations in millions of individual homes.

The battery breakthrough comes from a Salt Lake company called Ceramatec, the R&D arm of CoorsTek, a world leader in advanced materials and electrochemical devices.

The convergence of these two key technologies — solar power and deep-storage batteries — has profound implications for oil-strapped America.

With small-scale electrical generation taking place at millions of individual homes — as opposed to today’s large-scale power generation from a handful of giant power plants — there would be less worry about what’s called “point failure” on the grid. That’s when a single component gets knocked out and shuts off power to a whole region. California-style rolling blackouts would be history.

The threat of terrorism has heightened the worry. But wide distribution of batteries in homes would virtually eliminate it.

Inside Ceramatec’s wonder battery is a chunk of solid sodium metal mated to a sulphur compound by an extraordinary, paper-thin ceramic membrane. The membrane conducts ions — electrically charged particles — back and forth to generate a current. The company calculates that the battery will cram 20 to 40 kilowatt hours of energy into a package about the size of a refrigerator, and operate below 90 degrees C.

This may not startle you, but it should. It’s amazing. The most energy-dense batteries available today are huge bottles of super-hot molten sodium, swirling around at 600 degrees or so. At that temperature the material is highly conductive of electricity but it’s both toxic and corrosive. You wouldn’t want your kids around one of these.

The essence of Ceramatec’s breakthrough is that high energy density (a lot of juice) can be achieved safely at normal temperatures and with solid components, not hot liquid.

Ceramatec says its new generation of battery would deliver a continuous flow of 5 kilowatts of electricity over four hours, with 3,650 daily discharge/recharge cycles over 10 years. With the batteries expected to sell in the neighborhood of $2,000, that translates to less than 3 cents per kilowatt hour over the battery’s life. Conventional power from the grid typically costs in the neighborhood of 8 cents per kilowatt hour.

Re-read that last paragraph and let the information really sink in. Five kilowatts over four hours — how much is that? Imagine your trash compactor, food processor, vacuum cleaner, stereo, sewing machine, one surface unit of an electric range and thirty-three 60-watt light bulbs all running nonstop for four hours each day before the house battery runs out. That’s a pretty exciting place to live.

And then you recharge. With a projected 3,650 discharge/recharge cycles — one per day for a decade — you leave the next-best battery in the dust. Deep-cycling lead/acid batteries like the ones used in RVs are only good for a few hundred cycles, so they’re kaput in a year or so.

How do you recharge? By tapping your solar panels or windmills. It’s just like plugging in your cell phone or iPod, only you plug in your house.

A small three-bedroom home in Provo might average, say, 18 kWh of electric consumption per day in the summer — that’s 1,000 watts for 18 hours. A much larger home, say five bedrooms in the Grandview area, might average 80 kWh, according to Provo Power. Either way, a supplement of 20 to 40 kWh per day is substantial. If you could produce that much power in a day — for example through solar cells on the roof — your power bills would plummet.

“Batteries and PV are about to merge,” said MIT’s Nocera, using the shorthand for “photovoltaics” or solar power. “First Solar is now saying that it takes $1 a peak watt to manufacture, and another 80 cents for installation. So they’re saying that you can get PV for under $2 a watt. That’s a reduction of cost by a factor of four. Only a few years ago, it was $8. If CoorsTek and Ceramatec come up with a good battery, the market will develop quickly.”

The long-term impact of home electric generation for a power company’s business model could be huge. After all, you can’t stay in business if nobody’s paying for power. Exactly how that will play out remains to be seen.

This technology is new to me… but seems breathtaking and loaded with opportunity.  Please send any thoughts, ideas, information or opinions you have.

Before you invest though, remember the golden rules of investing.

1. Money isn’t everything
2. Work only with people you like
3. Buy businesses, not stocks
4. Invest only in what you understand
5. Don’t over diversify
6. Keep looking for new opportunities
7. Buy businesses you plan to keep for life
8. Look for businesses that are available at a good price
9. Do what you like

Potential Ecuador Chaos

investing-in-chaos

The people of Ecuador are friendly and happy.

There is some potential for change in Ecuador that could benefit those moving and investing there.

First, let’s look at the cause of the turmoil.  A recent message entitled Investing Internationally shared news about the Ecuadorian government’s plan to take back a number of radio and TV frequencies stations. We promised to stay tuned to what happens and share observations and opinions from trusted sources in Ecuador about this.

Since that time, the Western press has published even more bad sounding news.

A recent AP article entitled “Ecuador Wants Citizen Committees To Defend Gov’t” said:  QUITO, Ecuador — Ecuador wants to create local citizen committees that would defend the government and its “revolution” — sparking criticism that the president aims to control opponents in a system reminiscent of Cuba or Venezuela.

Citizen Participation Minister Doris Soliz told Ecuador TV on Thursday that local citizen groups are needed to defend against coups like the one that recently deposed Honduran President Manuel Zelaya, or against outside agitators, noting U.S. military plans to use Colombian bases.

Other articles covered lots of rhetoric from Venezuela’s President about winds of war in the area (Chavez’s commenting on the announcement that the US would place military in Colombia).

Since the daily press distort, dramatize and magnify the negative; here are more comments from Ecuadorian business people with this comments.

Dear Gary: Sorry for the delay in my reply.  Correa is an unpredictable president.  On one hand he tries to emulate everything Chavez has done in Venezuela.  It is clear that Chavez gave him millions to finance his political campaigns and now he is obligated to do whatever Chavez wants.

On the other hand, he knows how far he can push the people of Ecuador.  If he is not careful, he can end up like Zelaya in Honduras.  I see strong confrontations coming if he tries to close radio and TV stations like Chavez did.

As you say in your reports.  We all need to be diversified in order to avoid problems in one place and not have anywhere to go in thing go bad.  I do believe the Ecuadorians are not as passive as the Venezuelans, and if Correa pushes too far he will find out. Let’s wait and see.

I agree with this reader. Ecuadorians are an independent people, and I have watched them (peacefully) oust a number of Presidents who abused their power.

Here is another opinion from one of my many sources.

Gary,  My comments are just some personal opinions and for that reason I prefer that I not receive any credit.   There is some noise going around that Correa wants to have “block leaders” who will report back to the government of any dissent. You can imagine what this means. Stifling dissent. It is a time to be careful and hope the Ecuadorian military remains faithful to the people of Ecuador. While there are so many needs and opportunities in Ecuador to be attended to, one could ask why does the president feel it is necessary to be out speaking of “winds of war blowing” against Colombia?
Anyway, it all comes with the territory of being in the Latin governmental world I suspect.  If the leaders were just humble people looking to improve the lot of their people instead of being megalomaniacs hell bent on being Castro or Hitler, life would be easier for all.

investing-in-chaos

Here are children in a parade in Cotacachi.

Readers should note that it was not Correa, Ecuador’s president who made the comment about Winds of War but Chavez of Venezuela. A lot of press makes it sound like Correa is much more closely aligned with Chavez than I believe he is.  Good or bad, I do believe that Correa is his own man and is pretty independent.

Here is another comment by an Ecuadorian with a great political and historical background.

Thanks for asking.  Correa. He is all right.  His big problem is being too young.  There is
a proverb in Spanish “mas sabe el diablo por viejo que por diablo”.  (
The devil knows more because he’s old than because he’s the devil). That is Correa’s problem.  He is not old enough.  Velasco Ibarra who was president five times, was very much like Correa, when he was young. When he grew older he became much more sedated.

Again I agree with this. Everything I have seen has led me to feel that Correa has many good intentions and is trying to correct many wrongs and has a big job.  In his youth he may be too ambitious and impatient.  Time, inertia and politics should correct a lot of that!

Here are more comments.

He usually talks too much.  He talks every Saturday for 3 or 4 hours continuously.  It is not highly recommendable to quote him or mention his speech. Sometimes he just changes his mind. Or does not follow what he mentioned in the previous weekend.

That could describe more than one politician!

I have met the President a couple of times. He actually stopped next to us on the street at 9pm at night and met our son and was very sincere and asked what we thought about how things were here in Ecuador.  He is very headstrong, but I think that he is a very intelligent guy and he knows how to negociate  and what it is going to take for Ecuador to become a stable economy and that is with foreign investment and tourism.

Again this is the way I see it as well.

This is from a Quito businessman:

Dear Gary:  Many thanks for sharing the concerns some of your readers have about President Correa. I get some emails on the subject too.  I should start by saying that I am no fan of President Correa,  far from it. I don’t particularly like his discourse as if from the union trenches of the 60s and 70s.

Some of his economic policies seem to go counter current and his relative closeness with Chavez is a blemish.

Nonetheless, there are merits too, amongst which is great effort in improving education and health care. Also, in attempting to fix some wrongs and distortions we’ve had on several fronts.

In spite of Correa’s antics, Ecuador continues to offer, and perhaps more so than ever, rather remarkable opportunities for real estate investors, visitors and expats.

Let me explain:

The new, fresh-out-of-the-oven, Ecuadorian Constitution states, following with the tradition of the previous one, that foreigners have exactly the same rights as Ecuadorians under the law.

Furthermore, private property is protected under the law as one of the main pillars of our economy. Confiscation is prohibited and eminent domain (expropriation) situations are extremely rare, much less so than what they would be in Miami, London or Toronto for that matter.

While some people may believe that Correa is not particularly pro foreign investment, the reality is that Ecuador, just as the next country, needs investment to prosper and, hence, the President is very welcoming of it, he just demands responsible practices.

While the pitfalls of politics-as-usual and nationalistic grandstanding in Ecuador, can and does preclude some major investments from coming in (picture hydroelectric, oil exploration, etc), for most of us, of your readers Gary, this should not be a problem.

Regarding the Government’s stance towards foreigners coming to Ecuador and investing here, something quite nice and reassuring happened to me recently, which is telling about how reality differs from perception.

Here’s the story:

While working in the concept for a coastal development with international capitals and geared mostly towards foreigners, we realized that better government planning and zoning was needed in the area if we were to spread our wings the fullest.

I decided to call the Production Ministry, which is a high level coordination entity on top of many other ministries in Ecuador to see if they could perhaps give us some light as to getting some better zoning for the area.

I was immediately transferred to the head authority in charge of foreign investments in Ecuador and in a few hours was meeting with him along with other officers from the ministry he had called in.
They were not only incredibly welcoming of our ideas and concepts but asked us to create with them a road map not only for planning and zoning, but for infrastructure, education of the local community, and much more.

They have let me know that they are ready to lend a hand as needed and that when the time comes, once we have things down on a plan we can meet with the secretary of the ministry and even President Correa for further vision.

What is the reason for this incredible support? Well, that they are really pro investments and that when you want to do the right thing, doors become open.

On the subject of visas, something that concerns many foreigners, I can say that the President has prompted a very open regime for foreigners to come to Ecuador. However, some changes in the procedures are driving some of us nuts. We just have to adapt.

In any case, you can expect to get a resident visa in Ecuador in 3 to 6 weeks in most cases. The new director of Migration is quite a gentleman and very open and understanding. It’s a pleasure to work with him.

With regards to some radios being closed, this is something the President declared as a possibility on grounds that some radio frequencies had been granted with irregularities according to an audit. While the audit may be correct, President Correa does have a bitter quarrel with the press and his fixation with it is over the top now.

Getting back to real estate; I’d like to add that foreigners have been investing and buying real estate in Ecuador for some time, and that this is a trend that is seemingly quite on the rise.

I am seeing the start of a major wave here.

Ecuador has excellent real estate opportunities and values and the current international crisis where former “safe havens” have been shattered is making this truth about Ecuadorian real estate all the more compelling.

Investors into Ecuadorian real estate ought to buy soundly into capital preservation and important appreciation potential.

As final thoughts, given the current financial problems the world is seeing, the violence in Mexico fending off tourists and investors… the bursting of the real estate bubbles throughout, the baby-boomers coming of age with individuals lusting for active living with quality of life to boot, Ecuador is starting to make some tremendous sense to many.

Our President may be a bit of a showman (to put it somehow), granted; and we as a nation have a ways to go into maturity; we are rough around the edges, but we may have among the warmest, most welcoming people on earth, and no development can buy that.

We have good infrastructure and low cost of living. Those who see beyond the perception should be able to get in early on the trend, ride this major wave and make the best out of it.

These are good points… especially this one… the government may be talking one way or the other… but look at how it is acting. In this case it appears that the government is pro tourism… pro investment and is welcoming residents from abroad.

Here is one final comment.

Gary, I don’t get involved in my host country’s internal politics.  I am however a strong believer in the Open Society and the value of ideas meeting arguments, so I guess I would prefer more media outlets to fewer.  By the by, Ecuadorians I know say this is the first time they feel they cannot express freely what they feel about their government, for fear of repression.

These are two key points also. I do not get involved in politics anywhere.  My feeling is that time is better spent adapting to whatever the politicians do rather than joining into the political fray. Reality is that if you do business fair and well, whatever the political system is you’ll be welcome.  The second point is about freedom of speech.

I recall feeling fear like this recently when talking to my son over the phone. I was about to make a joke about a certain president and decided not to thinking… I had better not joke about this.  The problem was I was in the US… not Ecuador.

The great technology that has created such great access to information has destroyed our privacy as well…everywhere.

My new real estate acquisitions are in Ecuador . Recent messages have looked at the importance of seeing reality. People write often asking if it‘s safe in Ecuador. I was thinking of the reality of this as Merri and I concluded a long Ecuador morning walk. The birds were singing, roosters crowing in the distance and we saw two very young children, a girl of maybe six or seven and her little brother maybe four or five walking alone through the village on their way to school. This is so typical in Ecuador.

I wondered how many children of that age in North America are allowed to walk alone through town as they are in Ecuador.

investing-in-chaos

More Cotacachi children in a parade.

You see young girls like this (maybe eleven or twelve) walking around night and day. This is not because Ecuadorian parents are careless. It is because there is a great deal of safety in Ecuador .

Here are a few facts I know.

#1: The Ecuador constitution protects landownership of citizens regardless of citizenship. No local government can take land by eminent domain for economic development.

#2: No Ecuador children have been shot in school.

#3: Ecuador schools do not require metal detectors.

#4: No Ecuador police force has used a “no knock” search warrant to break down a door and then shoot an innocent 80+ year old resident 50 times.

#5: We do not worry in Ecuador about being sued if someone spills hot coffee on themselves at our hotel. By the way our coffee is hot here.

#6: Ecuadorian doctors do not have to shut down their practices because of malpractice insurance costs.

#7: Parents in Ecuador are not at risk of having their child diagnosed as having ADD and being forced to give them Ritalin. Read http://www.ritalindeath.com/ if you want to have your heart rendered over the weekend.

investing-in-chaos

There is a deep culture in Ecuador.

Back in early 2007, a potential real estate buyer visited me about buying a $93,000 house in Otavalo. As we enjoyed a “cuppa tea” and visited I could see he loved the house but was really worried about loss of property due to Ecuador’s constitutional reform.

My view was that the reform was unlikely to reduce individual land rights. As we can see above, the opposite took place. the constitution strengthened property protection.  Ecuador’s base of wealth has always been individual land ownership.

Then I pointed out to this potential buyer that his  real bigger risk was buying a similar three bedroom house in England. A similar house would cost him between $400,000 and a million dollars. The risk of losing $93,000 in value when the overheated English real estate market dips seemed greater to me than the chances of losing $93,000 in Ecuador because a house would taken due to constitutional change.

Prices were way overblown in England.  This was exactly what happened.  Real estate crashed in England while real estate prices in Ecuador have remained strong.

Plus Ecuador offers the benefits of $1.40 a gallon gas, lovely weather, sweet people, no capital gains tax on real estate sales, very inexpensive but good medical and dental help, ridiculously low property tax, almost no tort liability, inexpensive cost of living, low crime and better food.

In the west, the cost of living is so high that many people can barely move!

So where is it safe to live? I think when Merri and I are really realistic, we feel that there are many aspects of safety in Ecuador.

Many of us feel many changes in our homelands that are not good. If you do, don’t despair, the sun always shines somewhere as it did here in Cotacachi, Ecuador. Here’s the sun coming up!

Merri and I always practice diversification…in asset class as well as geographically.  We are over weighted in Ecuador so we are voting with our money that the chaos here will create more opportunity than trouble.

See more about Ecuador diversification here.

Change and chaos are parts of the rhythm of life.  The never ending evolution created by time and space creates turmoil but also opportunity.

We hope the chaos in your life brings only good to you.

Gary

Combining good international investing with the greatest asset of all, the ability to earn wherever you live, brings everlasting wealth in chaos.

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

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

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

See details of the two seminars below.

Join Merri, Thomas Fischer of JGAM, our webmaster David Cross and me in North Carolina this October and enroll in our emailed course on how to have a web business free.  Save $300.

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

Oct. 9-11 IBEZ North Carolina

Here is an email for a recent seminar delegate: Amazingly helpful, amazingly timely … thank you for this !

Sept. 17-21 Ecuador Super Thinking + 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 Seminar
Nov. 9-10 Imbabura Real Estate Tour
Nov. 11-14 Ecuador Coastal Real Estate Tour

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

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Ecuador Iran Excerpt


A number of readers have asked about Ecuador and Iran so here is an excerpt from our latest Ecuador Living report.

Some of the ideas apply to interaction between radicals in all of the Middle East and the West and how they can affect our wealth, business and investing.

The idea that Iran is a great enemy intent on attacking us is great for selling news, but a bad leader or two does not reflect the entire population.  Many of us in the US did not agree with some of the leaders our the last administration.

IF  Iran is to become more involved in the West and that’s a very big IF, I do not see it being any great deal. The only risk Iran poses is if many people give them a lot more concern then they deserve… as certain leaders in the West gave Saddam Hussein.

I do not claim in any way to be a great global military strategist but that thinking has some support from the thinking of other  who I do think are good at strategic global thought such as… Lee Kwan Yew.

I worked and spent a lot of time in Singapore during the late 1960s and early 1970s so I recall vividly the way Singapore used to be.

Lee Kwan Yew had a lot to do with Singapore emerging from a form of colonialism that included a lot of poverty to one of the wealthiest societies in the world.

This means it is fitting to read some of Lee Kwan Yew’s thinking that could apply to Ecuador and Iran now.

Lee Kuan Yew outlines the risks of relying on the local press succinctly in a 2007 interview with  UPI’s editor at large, Arnaud de Borchgrave.

Q: So what is your recommendation about Iran’s nuclear ambitions?

A: Is it now unstoppable. They are a very old civilization. Unlike the Arabs, apart from Mesopotamia valley, they rank with the Chinese, as history’s two principal civilizations worth talking about. And I think the mullahs and others want to go back to the days of empire.

Q: So should we be talking to them at the highest level, the way Henry Kissinger went to China?

A: (Chuckle) But you haven’t got a Kissinger or a Brzezinski to do that anymore. Where is the successor generation of geopoliticians?

Q: In fact, democracies don’t produce great statesmen anymore. Why?

A: You now have, and I don’t know how long this phase will last, mass media domination, owned by a group of media barons who want constant change for their balance sheets.

Q: So the power of mass media has made it impossible for a great statesman or woman to emerge and last any length of time?

A: I’m not sure. It depends on the nature of the crisis that must be faced. When a real crisis sets in, a matter of life and death, opinion formulators realize this is no time to be pontificating, but a time to stay the course with someone who understands what this is all about.   Short of that, the media help put a leader on the pedestal and then start chopping away at the pedestal until he/she falls in disgrace. That’s part of the cycle of constant change. Watch Sarkozy in France. They hoisted him up to prominence and now they’re already attempting to bring him down through his personal life.  Well, yes. But it’s also the enormous pressure of media competition and the giant appetite for advertising revenue, what television program gets what viewership, or eyeballs, or clicks online. Never mind the consequences. If you get the advertising, you win.

Q: When I last interviewed you in May 2001, I asked you what concerned you most about the next 10 years, and you replied, “an Islamist bomb, and mark my words, it will travel.” Four months later, we had Sept. 11. Secondly you said, “China and India’s challenge to the global status quo.” Do you still have the same concerns about the next 10 years?

A: Not quite. The Islamic bomb has traveled already (in Iran). I’m not sure how this will now play out. The U.S., the Europeans, even the Russians, will have to make up their minds whether to allow Iran to go nuclear. The Russians are playing a game, posing as the nice guys with Iran, supplying nuclear fuel, and making it look as if America is causing all this trouble. But if I were Russia today, I would be very worried about Iran acquiring the bomb, because Russia is more at risk than America. The risk Israel runs is another dimension. Russia is at risk because whether it’s the Chechens or Central Asian Muslim states that were former Soviet republics, none are friendly to Moscow. Next time there’s an explosion in Moscow, it may be a suicide bomber who isn’t wearing an explosive belt or jacket, but something a lot bigger. It would certainly be in Russia’s interest to say at some future point to Iran, “this far and no further.” It could also be that Russia no longer knows how to stop it, in which case the Russians will be opening the door to a very dangerous world of nuclear proliferation. You can be quite sure that if and when Iran gets the bomb, the Middle East will go nuclear.

Q: Which raises the question of the United States or Israel bombing Iran’s nuclear facilities.

A: (long silent pause) … I can express no views on that.

Q: As I travel in moderate Muslim states in North Africa, the Middle East and South Asia, I ask heads of state and government how many extremists, or would-be jihadis, they estimate live in their midst, also how many fundamentalists who support openly or secretly the jihadi cause. The answer is usually 1 percent and 10 percent. In a country like Pakistan, that translates to 1.6 million extremists and 16 million supporters. On a global scale, that comes out to roughly 14 million extremists and 140 million sympathizers.

A: Yes, but I do not see them winning, and by that I mean able to impose their extremist system. I can see them inducing fear and insecurity, and causing fear, but they don’t have the technology and the organization to overwhelm any government.

Q: So how do you assess the global threat since Sept. 11? What are we doing that’s right and also that’s wrong?

A: Even if we can’t win, we mustn’t lose or tire. We cannot allow them to believe they have a winning strategy, and that more suicide bombers and WMD will advance their cause and give them a chance to take over.

Q: Did Iraq have anything to do with al-Qaida?

A: Of course not, as became clear in the daily sessions the imprisoned Saddam spent with his Arabic-speaking FBI interrogator over several months before his execution. But U.S. authorities were convinced Saddam was secretly supporting al-Qaida with weapons and training and maybe even WMD. So therefore the imperative became the elimination of Saddam.

A: (Laughs for several seconds) We should learn to live with it for a long time. My fear is Pakistan may well get worse. What is the choice? (President) Musharraf is the only general I know who is totally secular in his approach. But he’s got to maneuver between his extremists who are sympathetic to Taliban and al-Qaida and moderate elements with a Western outlook. We forget that right after Sept. 11 he was given a stark choice by President Bush: either you abandon your support of the Taliban regime in Afghanistan or face the disintegration of Pakistan. There is an interesting study of Pakistan’s Inter-Services Intelligence agency that says 20 percent of the Pakistani army’s officer corps is fundamentalist.

A: There is very little, if anything, the U.S. can do to influence the course of events in Pakistan that wouldn’t make matters worse. Any U.S. interference in Pakistan would result in Pakistan’s four provinces becoming four failed states. And then what happens to Pakistan’s nuclear arsenal? It’s a horrendous festering problem. The Feb. 18 elections may bring a little clarity and hopefully democratic stability to Pakistan, but I am not holding my breath.

Q: So you do feel that NATO’s future is at stake in Afghanistan?

A: No doubt about it. But you should also realize Afghanistan cannot succeed as a democracy. You attempted too much. Let the warlords sort it out in such a way you don’t try to build a new state. The British tried it and failed. Just make clear if they commit aggression again and offer safe haven to Taliban, they will be punished.

Q: If NATO collapsed in the wake of a failed campaign in Afghanistan, would that be a major concern of yours in Singapore?

A: Not immediately, but overall the balance of power would be upset.

Q: In whose favor?

A: China and Russia. They would be faced with a much weakened West in the ongoing global contest. I can also see the danger if America loses heart and says to hell with it all because the Europeans are not helping and the Japanese are blocking this and that, and tokenism from all the others. Let’s not forget that what we’re all enjoying today is the result of Pax Britannica and Pax America over the past 100 years. So don’t give it up.

Q: But in the Gulf, if the U.S. and/or Israel bombed Iran’s nuclear facilities, Iran has formidable asymmetrical retaliatory capabilities?

A: But let me repeat, they cannot conquer you. Hezbollah cannot conquer Lebanon. They can create trouble for the non-Hezbollah Lebanese. So micro actors can cause a lot of trouble for your friends, but they can’t eradicate them.

You can read this entire report as an Ecuador Living subscriber and see why if there were to be a military concern in Latin America it would be over China…not Iran..

ecuador-iran

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There were two articles readers have recently mentioned.

The first article began, QUITO – Iran will finance two new power plants in Ecuador and extend a 40-million-dollar loan for business development, officials from both countries said Thursday, three months after the first visit by an Ecuadoran president to Tehran.

The second:  Iran, Ecuador Eye Military Ties As U.S. Prepares to Withdraw from Airbase Friday, May 29, 2009, by Patrick Goodenough, (CNSNews.com) – As the United States military prepares to vacate an airbase in Ecuador in the fall, the leftist government responsible for its upcoming departure is looking to Iran as a future military partner.

While I do not feel that nuclear power or expanded military might are good things, I do believe completely in the global economy and in expanding the wealth of all.

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Subscribe to Ecuador Living and see an upcoming report on how to own this organic tomato farm with…

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trout pond.

One can argue about all the numerous conflicts in the world but if we boil it down to the few most important, one of the biggest tensions in today’s society is that there are a few very wealthy people and many, many poor.

For decades my premise for economic expansion has been based in part on the belief that most people, if given a choice, will spend their time doing positive things, like working at something they love for increased material wealth and great fulfillment rather than living a guerilla’s life.  A poor soldier’s living conditions are  generally not pleasant… the pay low… the risk extreme.  That life, however, is better than one of complete hopelessness and despair.

If Ecuador Iran cooperation can help make more poor Ecuadorians and Iranians rise out of poverty… I say…”go for it!”

There are many potential and huge benefits to be gained by bringing Iranian business to the West. Maybe Iran being closer to the West will help it integrate?  Current events in Iran suggest that many of the population would be happy to do so.

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I have had an opportunity to observe Correa and the people of Ecuador react for a couple of years now.  At times I have been quite close… such as when I took this photo.

Ecuador-photos

Correa is in a strong political situation at this time. One thing that could destroy his popularity quickly would be the perception in this 90% Catholic country that he is introducing Islamic radicalism.  Therefore Correa may line up with Iran for some money… and to gain leverage in his dealings with the West… but a major integration would surprise me very much.   One bombing in an American hotel in Quito or Guayaquil and Correa’s popularity would be toast.

There have been worries about his friendship with Chavez. There are these worries of Correa with Iran. There have been worries about South America pulling away from the US dollar.

Yet so far none of these fears have affected life, happiness, opportunity, real estate values or  law and order in Ecuador.

In short anyone who never heard of or ignored all these fears and moved optimistically forward is better of than those who did not.

Most of the press are writing about the world sliding into recession. Many articles in the Western press make it sound like there’s little opportunity and great danger everywhere.

Good. Their doom and gloom creates positive global investing opportunity for those of us who can see through the illusion.

ecuador-iran

Subscribe to Ecuador Living and learn about Primavera V condos.

Regards,

Gary

We hope you’ll join us to learn more business and investing opportunities globally as well as 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.

Ecuador Air Fare Excerpts


There is good news on Ecuador air fares. Right now Lan which has regular flights to Ecuador is offering some Guayaquil and Quito air fare special deals. We’ll look at these air  fares in a moment.

We are certainly very happy to be here after reading this report from Richard Goebel, our manager at our North Carolina farm.

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It was cold this AM.  -4 degrees and with the wind chill -20 degrees F. I broke up a fight between a hawk, a chicken and the rooster. Only feathers lost.
though the small black chicken is gone. Plus we lost two mallards last night or one male and a female. The cold is bringing out the predators. Another exciting day on the farm. Your friend Richard

We were happy to learn that the little black chicken was found. She ran off when the hawk came and is now sleeping in the pump house with our cat Alice.

Before looking at that Ecuador air fare war remember you can get fresh Ecuador valentine roses shipped to your home.

Second,  here is an excerpt from Yesterday’s password protected multi currency courses that shows why  Ecuador may be a good bet now and why using the special February low cost Ecuador air fare may be wise.

The multi currency excerpt begins when a reader asks:

Why not just keep your money in gold/silver?  All fiat currency will crash sooner or later.

Here is my reply.

Re gold. I’ll have a friend who is one if the world’s gold experts do a feature password protected lesson on the state of gold shortly.  I have often thought of just buying gold myself and forgetting all this work of keeping up.  If for no other reason this has such simplicity. However, though history shows that gold always adjusts for inflation eventually… history also shows that gold can have huge price swings that may last for decades.

I know one client who cashed out his portfolio and just bought  gold about 30 years ago when the price was $860 an ounce.  So we have to ask, when is sooner or later?
I know another client who bought a lot of gold and then had it confiscated when he tried to cross a border with it.  His crime… just having  a lot of gold as far as we can tell.

Plus if you live outside of a major city how often do you have to run to a metropolis to sell some gold?    How about the security risks?

I have a little more faith in the resiliency of mankind every day.  Sometimes when we have more turmoil than expected, it is hard to see how things can get better. Yet in every decade, the 60s, 70s, 80s and 90s, there has been a crash and after the crash, a recovery.

I am not a gold bug  or real estate or share bug.   I am a VALUE BUG.  I like value and find it exceedingly hard to know gold’s real value.

I also like diversification and have created a hedge for each potential situation…for things to get better or worse.  So I have some gold. have some equities…but not all that much.

It will be interesting to see how everything unfolds.  For now I’ll not buy too many Amero futures or blocks of gold.   Nothing to date suggests to me that this downturn is any different than any others.

I do keep some gold socked away. I do live on a farm where I can feed myself in case of an extreme global currency dislocation.  The farm however is a lifestyle situation and makes no comment on my belief on global affairs.

I have not abandoned my core belief that there are four ways to fight inflation and currency turmoil.  My portfolio is based on these beliefs.

History suggests that we can always succeed in:
#1: Our own business.
#2: Real estate
#3: Commodities
#4: Equities (ownership of other people’s business)

You can read this entire password protected lesson as a multi currency subscriber.

Now the low Ecuador air fare. Here is an excerpt from today’s password protected Ecuador Living report.

Lan Ecuador seems to be starting an Ecuador air fare war.  For example their site says, if you fly down Saturday February 7, 2009 on flight EL517, you leave Miami  at  5:10pm  and arrive  in Quito at  9:20pm.

You can attend our Beyond Logic and International Business Made EZ courses, then return Monday February 16, on flight XL516 leaving Quito at 9:20 am and reaching Miami at 1:25. The entire fare INCLUDING TAX  is only $421.51.

Plus right now Lan let’s travelers bring a third suitcase to Ecuador FREE!

This is a good time to visit Ecuador because the price of oil is low and Ecuador’s oil dominates what happens in Ecuador.

This low oil price and two other important factors canhelp Ecuador real estate prices rise.

When Ecuador’s currency was the sucre, it crashed in 1999.  Real estate prices simply rose as the sucre fell.  The instability caused b the currency collapse created some great real estate bargains because Ecuadorians rushed out of the sucre into property.

Now the low oil price can boost real estate again…plus there are two other boosts.

The first real estate boost come in the form of Cholo Boys. This is the name for Ecuadorians who left Ecuador during its 1999 economic plight… manly to Italy and Spain. They earn there, return and invest in real estate.  Now they are returning to Ecuador. Even Ecuadorans in the US are returning to Ecador…beause life here is good.

The other upwards pressure on Ecuador real estate is the Nort American expat market. Hoards of gringos are coming down for a warmer and easier low cost lifestyle.  I know. Our hotel is full almost all the time now.

All of this buying pressure turns Ecuador real estate into an international commodity. This makes the prie of real estate ere less vulnerable to local economic declines.

I believe this enough that I bought an extra unit at Vistazul when I heard the news that Correa might default on Ecuador bonds.   I own more condos there than anyone else and may buy more…six condos and an apartment in the hotel itself…plus two of my daughters each (on my advice) bought a condo.  Plus I just made an offer on more property in Cotacachi.

Due to the drop in the price of oil, President Correa recently said that he plans to restrict imports to help stem the outflow of dollars and offset the tumble in oil, the country’s biggest export.  He cannot afford to do it and as a trained economist he knows this.

Oil prices are now lower than in 1999, when adjusted for inflation.    The low oil price in the 1990s helped push Ecuador into default and caused a couple dozen banks to fail. This was when the country dropped its currency, the sucre, in favor of the dollar.

Correa plans to revise investment plans and trim spending on public-sector salaries and pension plans to help cope with the global economic slump.   He is cutting back on minimum wage raises and  subsidies  for the poor.

In short, times may become tougher in Ecuador. This means those who have money to invest will find the greatest value!

Visa Change,

When you come down be sure to check visa rles. Recently the visa attorney we refer readers to told us  that there are new Ecuador visa regulations. He said there is a lot of confusion as two government agencies wrestle with each other for control over immigration.

Many people do not need a visa if they are staying less than six months (180 days) a year. When Americans, Canadians and British enter Ecuador, they are automatically given a 90 day T-3 visa. This is the visa that Merri and I always use.

This T-3 visa is non-renewable.  You must leave by the expiry date.

Be careful about this.  In the past there was just a modest fine.  If you stayed over your due date you could pay a small amount extra when you left.   This is no longer true.   The fine is $200…but there is another catch we just learned.

We talked to a friend who overstayed his 90 days and paid  the $ 200 fine when he left in December. He flew back last week, was stopped at the airport and deported back to the United States because he did not know this rule!

You can learn the new rule and read a password protected, complete report about how to get visas as an Ecuador Living subscriber.

Plus the Ecuador Living report shows  how to have Social Security give you a letter of proof so you can have an Ecuador residence visa.

Learn about being an Ecuador Living subscriber.

Until next message, good Ecuador Living to you.

Gary

Last week we began tracking how fast the municipality gets work done here.  We saw day one of a dirt road where construction was obviously about to come.

Day two.  The action had begun.

cotacachi-real-estate

Day three and the first phase of the road is almost done.

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Day four its even more complete.

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Day seven (Sunday there was no work) and the road is fully paved.

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Plus the intersecting road is well under way as well.

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See in Sunday’s update how I was caught in this parade when I went out to take the latest road shots.

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We’ll have a dozen shots like the picture below.

Join us in Ecuador this February.

Feb 9-11 Beyond Logic Keys to More Wealth & Better Health

Feb. 13-15 International Business & Investing Made EZ

Feb. 16-17 Imbabura 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

Ecuador-air-fare-wars

Ecuador and the Dollar


Since 2000, the US dollar has been Ecuador’s currency. Could it be that now Ecuador and the dollar might part ways?

Many readers have written and voiced concern that Ecuador might stop using the US dollars as its currency and return to a new sucre.

This may or may not happen. I previously did not think it would, until recently President Correa vowed that Ecuador would continue to use  the US dollar.

Lesson one of our Multi Currency Investing course points out that a general rule of currency investing is to expect a currency to devalue (or in this case change) soon after the responsible government swears that it will not.   See more about our Multi Currency Investing Course

Perhaps.

The current strength of the greenback alters the fundamentals.  If the dollar remains strong it is more likely that Ecuador will go off the dollar in  2009.

A continued low oil price could also have an impact on a decoupling decision for two reasons.  First, Ecuador’s President Correa will be under extreme pressure to deliver local promises he has made to the public.  Without high oil prices he has no money to deliver the goods.  His public excuse could be to blame America and the US dollar.  A return to the sucre would allow Correa to print money he needs for local promises right now.  This would only give him a short term boost but if he is desperate this might happen to make him look better.

Secondly, low oil  prices will diminish Ecuador’s foreign exchange reserves and the nation’s ability to pay foreign obligations and debt.  Correa has proven he is willing to jilt long term obligations.  A bond default slams the door in the face of someone who gave you something in the past.  However it is a bit easier to beat up on creditors of the past than those you need to deliver goods now or in the future.  If you do not pay them, they stop sending the goods!

Correa will not want the country running short of the supplies it needs to run on a day to day basis.

Let’s watch for Ecuador’s  reserves versus its short term obligations as an indicator of when Correa might pull the dollar plug.

If Ecuador and the US dollar do part, we must ask, so what? For many, this switch back to the sucre would be good.

When Ecuador originally Dollarized those who suffered most were the urban poor and citified middle class.  When the sucre was Ecuador’s currency and it devalued… wages were always raised at the same time. This meant that basics like food, clothing and subsistence shelter did not really cost more. Inflation at the base level was not real.  Certainly Western imported goods cost more…like TVs, cars and computers.  This mattered little to the urban poor because they never had a chance for this stuff anyway.  The middle class emigrated in droves to Spain and Italy.

Dollarization made inflation real!  Politicians could print more sucres to raise wages with inflation…but they could not print more dollars.  The poor in the city reeled.

The poor in the country who worked in agriculture did well though.  The price of crops rose.

Then the US dollar began to collapse versus other currencies.

The falling dollar helped create business opportunity.  One friend who owns a flower exporting business told me that the flower business in Ecuador was good due to the dollar fall versus other Latin America currencies, especially the Colombian peso. Colombia is one of Ecuador’s largest competitors in roses and bananas, two of Ecuador’s largest exports.

The cost of Ecuadorian products became lower even in the U.S. when compared to products from countries (such a Colombia) where the currency had strengthened against the dollar.

As the dollar falls versus other Latin America currencies, Ecuadorian products become less and less expensive in global terms.

Now of course the dollar has gained strength and this hurts Ecuador’s export potential.  The strong dollar is the rock…the low oil prices…a hard spot.  Correa and Ecuador’s economy are caught between them.

Also a new sucre, though less convenient,  would probably be good for expats.

A full report sent to our Ecuador Living subscribers explains what this would mean to expats and the Ecuador real estate market. You can subscribe here

Gary

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

Jyske Gobal Asset Management will join us Feb. 13-15 for our course International Business & Investing Made EZ

Join us and then stay on for a real estate tour Here is our latest group inspecting the hotel,which is one block from the Ecuador’s Pacific.

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We’ll view this hotel. It has a huge front porch.

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Large second floor veranda with ocean views.

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Beautiful flowered front yard.

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The building is really rough and needs work…but over 8,000 square feet of building. The asking price is $60,000.

We have sent our Ecuador Living paid subscribers more details on this building on this Ecuador hotel for sale. Subscribe to get this report. See how to subscribe to Ecuador Living here.

Join us for our next Spanish course ad real estate tours.

Join us at a course in Cotacachi to learn more about multi currency investing.or on Ecuador’s coast this winter.

Jan. 16-21 Ecuador Spanish Course
Jan. 22-23 Imbabura Real Estate Tour
Jan. 24-27 Coastal Real Estate Tour

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

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

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

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

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

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

Bahia Ecuador Real Estate


Bahia Ecuador is Ecuador’s best kept secret.

A message entitled Manta Real Estate in Ecuador looked at why Manta makes investing north of this port city a good investment.

Manta may be a great place to invest…but Bahia is a great place to be!

This picture at tripadvisor.com shows one reason why. Here is Bahia, Ecuador.

bahia-Ecuador

The full name of the city is Bahia de Caraquez. This is a town that makes living on this part of Ecuador’s coast a great place to be.

Wonderful Ecuador sunsets are here.

Bahia-Ecuador-sunset

Yet as you will see below, there is much much more…here in Bahia, Ecuador.

Merri and I have for the last 25 years (since we left London) always lived in an out of the way place, two hours or so from an international airport and a half hour to a nice city.

When we moved to Naples, Florida 25 years ago it was a sleepy village…no WalMart…no Office or Home Depot etc. We were two hours from Miami International Airport and half an hour to Ft Myers. We would drive to Ft. Myers once ever two weeks or so to get supplies and then scoot back to the quiet life.

Now we are in the Blue Ridge…nothing is here but fields and forests! We drive a half hour to West Jefferson once a week to get groceries, the Farmer’s Market and if we have to go for office supplies that’s another 45 minutes. Then we zip back into the hills. Greensboro or Charlotte airports are a bit over two hours away.

Our home in Cotacachi, Ecuador is two hours from Quito International Airport and half an hour to the City of Ibarra.

So it was no surprise when I started calculating travel times from our new home in San Clemente in Manabi Province on Ecuador’s Pacific Coast.

We are 45 minutes to Manta. Add a check in and a 30 minute flight. This gobbles up two hours and gets us to Quito International Airport.

A half hour north of San Clemente is the town of Bahia de Caraquez one of Ecuador’s sleepers! It is one of Ecuador’s nicest cities that very few people know.

Bahia, first of all is clean. It became Ecuador’s first Ecocity in the late 1990s as a positive response to two disasters that hit this city of about 25,000 residents.

Two natural disasters fell upon Bahia right in a row. First, in 1997 the “El Niño” phenomenon caused torrents of rain, flooding and washed out miles of road in to and from Bahia. Then a year later in August 1998, a strong earthquake (magnitude of seven) created a huge amount of destruction,

In a kindness that evolution brings, Bahía had to completely reconstruct itself.

With Japanese help and funding, plus many wealthy Ecuadorians (one of Ecuador’s more successful presidents came from Bahia so it is well known in wealthy circles) Bahía rebuilt as an ecological area. The governing authorities made an official declaration of this fact. Since this time, the city has planned its development within the sustainable principals of an Ecocity.

Bahía is a Pacific coastal city located on a peninsula about an hour and 15 minutes north of Manta and is bordered by the Chone River.

Here is a shot taken on one of our coastal real etsate tours over the Chone Estuary.

Bahia-Ecuador-Chone-River

Over the last decade Bahia has become one of the country’s most attractive resort areas due to its beauty, cleanliness and access to the major cities of Quito (five hours by car) and Guayaquil (four hours by car).

Bahia’s year round population is estimated at 25,000 with a substantial increase during the summer,

There are also two very important reasons why Bahia real estate values may now rise fast.

First, a new highway is being built between Quito and the coast. This construction is taking much longer than it should and costing way more than budget..but eventually it will be complete and one more concrete freeway will be able to whisk from Quito to Bahia.

Second, some day there will be a bridge across the Chone. Bahia sits on an isthmus between the Pacific Ocean and the huge estuary of the Chone River. If you are traveling from the south up the coast in a northwards direction, you are stopped at the Chone. The drive onwards moves down the Chone for a couple of hours just to get back to the coast north of the estuary north. Here is a group of our real estate tour delegates looking across the Chone.
Bahia-Ecuador-Chone-River-Sailing-

This map shows it all.

bahia-map

The only way to cross the Chone at this time is via ferry. There are usually two car ferries. This is the Pacific Coast Highway running from Columbia all the way down to Peru and Chile so cars, buses and trucks use them.

Big trucks are loaded, first followed by the cars. These ferries also take foot passengers and are free.

Bahia-Ecuador-Ferry

There are also passenger ferries that continually go back and forth costing about 30 cents for the trip.

However, at times it can take up to two hours to get on a car ferry.

So a bridge across the Chone would be invaluable and is in the process.

John Papski, our man on the coast, recently visited Bahia and President Correa there.

Bahia-Ecuaor-President

Here is President Correa in Bahia.

John helped me complete a two part Bahia report that is now available to our Ecuador Living subscribers.

You can learn how to subscribe here

Until next message may all your secrets be as good as Bahia!

Gary

Our September 17-20 Ecuador Coastal Real Estate Tour; Quito Real Estate Tour is sold out.

Our September 28-29 Imbabura Real Estate Tour has two spaces left
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Oct 14-18 Ecuador Import Export Course
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We still have space in November.

Nov 7-9 International Investing and Business Made EZ Ecuador
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Nov 10-11 Imbabura Real Estate tour
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November 12-15, 2008 Ecuador Coastal Real Estate Tour; Quito Real Estate Tour
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